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HomeMy WebLinkAboutPublic Hearing - Draft Housing Element Amendment to General a „Vu VI JCS 1 , iJ 1L Ilt.i.+ L11\L�IVIJ , i .:L ILL ,lV J1V JGJ GV1J 1'TTIV 1 VG ' STATE Of CALIFORNIA GEOROE DEUKMEJIAN, Oowmot DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT Division of Housing 'Policy Development P.O. Box 952053 Sacramento, CA 94252-2053 (916) 323-3176 August 7 , 1990 Mr. Michael Uberuaga City Administrator City of .Huntington Beach 2000 Main Street Huntington Beach, CA 92648 RE: City of Huntington Beach Adopted Element Dear Mr. Uberuaga: This letter is in response to a request from Huntington Beach's Planning Department for verification of receipt of the City's adopted housing element on August 2, 1990. As you may know, we are authorized, although not required, to review adopted housing elements and report our findings to the locality (Government Code Section 65585 (b) ) . Due to current workload constraints and statutory requirements to review all draft housing elements, we are unable to review the adopted element at this time. The next quarterly housing element status report will to reflect the receipt of the City' s adopted element. If you have any questions about our comments, or if we can be of assistance, please contact William Andrews of our staff at (916) 323-7271. sincerely, Dancy J. Javor, C ief ivision of Housing Policy Development 19g® ALIG � 8 NJJ:BA:bt DEPARTMENT DF ENT: UNITY DEVE�OPM cc: Mike Adams, Planning Director COMM D�v►s►oN ,. P�NIy1N� City of Huntington Beach 1989 Housing Element Update 'Ali � C�u CITY OF HUNTINGTON BEACH CITY COUNCIL TOM MAYS, Mayor PETER GREEN, Mayor Pro Tem WES BANNISTER JOHN ERSKINE DON MacALLISTER JIM SILVA GRACE WINCHELL MICHAEL T. UBERUAGA, City Administrator PLANNING COMMISSION GERI ORTEGA, Chairwoman KIRK KIRKLAND, Vice Chairman KEN BOURGUIGNON VICTOR LEIPZIG ED MOUNTFORD i. JAN SHOMAKER BARRY WILLIAMS DEPARTMENT OF COMMUNITY DEVELOPMENT PARTICIPATING STAFF MIKE ADAMS, Director, Community Development Department HOWARD ZELEFSKY, Planning Director SCOTT HESS, Senior Planner HAL SIMMONS, Senior Planner RUTH LAMBERT, Assistant Planner JULIE OSUGI , Planning Aide JANE MADERA, Planning Intern JULIE PATTERSON, Planning Intern SPECIAL ASSISTANCE DAN BRUENING, Housing Rehabilitation Administrator STEPHEN KOHLER, Principal Redevelopment Specialist GREG BROWN, Redevelopment Analyst ERIC NICHOL, Redevelopment Analyst 1.0 INTRODUCTION The Housing Element is intended to direct residential development and preservation in a way that coincides with the overall economic and social values of the community. The residential character of a city is largely dependent on the type and quality of its dwelling units, their location, and such factors as maintenance and neighborhood amenities. The Housing Element is an official municipal response to a growing awareness of the need to provide housing for all economic segments of the community, as well as legal requirements that housing policy be made a part of the planning process. As such, the Element establishes policies that will guide City officials in daily decision making and sets forth an action program designed to enable the City to realize its housing goals. 1.1 State Policy and Authorization The California State Legislature has identified the attainment of a decent home and a suitable living environment for every Californian as the State's major housing goal . Recognizing that local planning programs play a significant role in the pursuit of this goal , and to assure that local planning effectively implements statewide housing policy, the Legislature has mandated that all cities and counties prepare a housing element as part of their comprehensive General Plans. Section 65302(c) of the Government Code sets forth the specific components to be contained in a community's housing element. Appendix A summarizes these State requirements and identifies the applicable sections in the Huntington Beach Housing Element and Technical Data Report where these requirements are addressed. Article 10.6 was added to the Government Code in 1980 and incorporates into law the Housing Element Guidelines promulgated by the California Department of Housing and Community Development (HCD) . The original Housing Element Guidelines were adopted on June 17, 1971, and revised guidelines were adopted on November 17, 1977. The Government Code specifies the intent of the Legislature to insure that counties and cities actively participate in attaining the state housing goal , and sets forth specific components to be contained in a housing element. These include the identification and analysis of existing and projected housing needs, resources and constraints; a statement of goals, policies, quantified objectives, and scheduled programs for the preservation, improvement and development of housing; identification of adequate sites for housing; and adequate provision for the existing and projected needs of all economic segments of the community. State law requires Housing Elements to be updated at least every five years. The City has prepared the following updated Housing Element in compliance with the July 1, 1989 deadline for jurisdictions within the SCAG region. 1-1 1.2 Organization of the Housing Element The Housing Element Guidelines require elements to include two basic components: 1. An evaluation of the housing problem and an analysis of housing needs, indicating the capacity of the existing housing supply to provide all economic segments of the community with decent housing. 2. A housing program, consisting of two parts: a. A comprehensive problem solving strategy establishing local housing goals, policies, and priorities aimed at alleviating unmet need and remedying the housing problem; and b. A course of action which includes a specific description of the actions the locality is undertaking and intends to undertake to effectuate these goals, policies, and priorities. The Huntington Beach Housing Element update delineates the City's housing needs and sets forth a program of action in accordance with State law. This first section of the Element defines the intent of the Housing Element, describes its relationship to State directives and other general plan elements, and includes a description of the public participation and intergovernmental coordination utilized in its preparation. Section 2.0 of the Housing Element provides an overview of the present and projected housing needs of the City's households as defined by the Housing Element Technical Data Report, which serves as an appendix to the Element. This section also provides an analysis of potential constraints to meeting the City's identified housing needs, and an evaluation of opportunities that will further the development of new housing. Finally, the Housing Plan presented in Section 3.0 sets forth the City's quantified housing goals, policies and programs to address Huntington Beach's identified housing needs. 1.3 Relationship of the Housing Element to Other General Plan Elements The California Government Code requires that General Plans contain an integrated, internally consistent set of policies. When any one element of the general plan is revised, and especially when new policies and priorities are proposed, the other elements must be reviewed to ensure that internal consistency is maintained. This section examines the relationship of the Housing Element and its policies to the other elements of Huntington Beach's General Plan. Land Use The Housing Element is most affected by development policies contained in the Land Use Element, which establishes the location, type, intensity, and distribution of land uses throughout the city. In designating the total 1-2 acreage and density of residential development, the Land Use Element places an upper limit on the number and types of housing units constructed in the city. The acreage designated for industrial , commercial , and office professional uses creates employment opportunities; the presence of these jobs affects the demand for housing in the city. Ongoing modeling of the fiscal impacts associated with various land use types and proposed developments may warrant a reconsideration of the distribution of land uses throughout the city, especially in light of the Jarvis and Gann tax initiatives. Early indications reveal that there may be significant policy conflicts between providing a sufficient number and range of housing types and maintaining a balanced local economy and an adequate level of municipal services. The adopted policies and priorities of both the Housing and Land Use Elements must be carefully balanced to maintain internal consistency in the General Plan. Open Space and Conservation Policies contained in the Open Space and Conservation Element call for the preservation and protection of the city's natural environment through the conservation of significant open space areas, acquisition of land for recreation and parks, and restricted development in hazardous areas and areas utilized for the production of natural resources. These policies affect both the amount of land available for housing by designating permanent open space areas and the cost of housing by requiring land dedication and/or development fees for the acquisition and maintenance of public open space areas. Circulation The Circulation Element calls for the development of a system of arterial highways that safely and efficiently accommodates traffic generated by adopted land uses. At the same time, the element seeks to minimize the adverse environmental and aesthetic effects of the road network and traffic on sensitive land uses such as residential areas. By providing for a convenient public transportation system and a network of bicycle, pedestrian, and equestrian trails, the Circulation Element attempts to create a satisfying living environment for residents of Huntington Beach. While the cost of producing new housing is affected by the City's street design standards and arterial dedications requirements, these standards are not excessive and do not unduly constrain affordable housing. Noise The Noise Element contains policies aimed at reducing the impacts of urban noise on residents, workers, and students in the city. Sources of noise include freeway and arterial traffic, construction and oil -related machinery, and aircraft. Residential development in areas with high noise impacts is discouraged unless adequate noise attenuation features are included. Special construction methods or increased landscaping to reduce noise impacts create a more satisfying living environment but also add to the cost of housing. 1-3 Seismic Safety The Seismic Safety Element identifies geologic and flood hazards in the city. Although development within identified hazard areas is not prohibited altogether, special construction techniques are required to ensure that structures will remain safe in the event of a disaster. Unstable soil conditions in certain areas of the city require additional grading, fill , and compaction before development is allowed. In addition to the extensive fault system that underlies Huntington Beach, the majority of the city is located within the floodplain of the Santa Ana River. The National Flood Insurance Act of 1968 requires affected localities to adopt a program of floodplain management to prevent loss of life and property in the event of a major flood. Provisions of this program range from prohibiting development in severe hazard areas and requiring modification of structures or special construction practices to securing bonds for the construction, improvement, and maintenance of flood control and drainage facilities. All of these actions add to the cost of housing in the city; however, they are required if the City is to provide an acceptable level of public safety. Scenic Highways The Scenic Highways Element establishes local scenic routes and landscape corridors along several arterial highways in the city. The intent of these designations is to establish and maintain aesthetic visual resources along major transportation routes, implemented through landscaping programs, grading, development, and signing controls, utility undergrounding, and architectural review. While the scenic highways program enhances the living environment, the costs to the City and private developers to implement the program are eventually reflected in increased housing costs. Community Facilities The Community Facilities Element provides direction for the provision of community facilities needed to serve existing and proposed development in the City in a coordinated and cost efficient manner. The element contains pertinent data regarding the status of the City's major capital facilities. Community facilities, particularly those related to health and safety, are a prerequisite to any new development. The availability and condition of existing community facilities may impact the provision of housing, especially affordable housing, since necessary infrastructure improvements will increase housing costs. By directing the location and timing of new capital facilities, the City can affect the availability of sites for new housing. By investing public money in existing neighborhoods, the City may help stabilize and revitalize them, thus preserving and upgrading the available housing stock. 1-4 Coastal The Coastal Element contains the land use designations and policies adopted by the City to implement the California Coastal Act of 1976. The Coastal Element, which is the Land Use Plan portion of the City's Local Coastal program, has been certified in geographic part by the California Coastal Commission. Although the provision of affordable housing is no longer required under the Coastal Act, the Land Use Plan itself may affect the cost and desirability of housing within the entire City. Low and moderate income housing within the coastal zone is currently addressed by Section 65590 of the Government Code. The Technical Data Report to the Housing Element discusses the housing stock within the Huntington Beach Coastal Zone and recent housing developments under Section 65590. 1.4 Public Participation Section 65583(c) (5) of the Government Code states that "The local govenment shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort. " Upon completion of a Draft Housing Element, the City advertised its availability for public review. The Draft Housing Element and Technical Data Report were made available to the public at City Hall free of charge. The City also circulated draft elements to housing interest groups for comment. The City Council appointed a Housing Committee in October 1988 for the purpose of working with city staff to develop an overall program strategy for expenditure of the City's 20% housing set-aside fund, as well as reviewing other housing issues. The Housing Committee consisted of three City Council/Redevelopment Agency members, and four City residents appointed by the remaining four Council members. Citizen representatives included individuals experienced in both non-profit and for-profit housing development, and with CDBG programs. Based on the Committee's knowledge of housing issues facing the community, they also acted as the reviewing body for the Housing Element and Technical Data Report. City staff met with the Committee on several occasions to receive their input on the major housing issues facing the community, and to refine Housing Element policies and programs to address identified housing needs. Prior to public hearings, public participation was provided for in a special Housing Element workshop conducted by City staff. The purpose of the workshop was to review the findings of the Element and Technical Data Report, and to receive community input on proposed policies and programs. In addition to the public workshop, staff conducted study sessions with the Planning Commission and City Council prior to each body conducting public hearings on the Housing Element. The workshop and study sessions were advertised both in the local newspaper, as well as through direct mailings to interested community members. 1-5 Public participation was also provided in the form of public hearings. Following the preparation of the Draft Housing Element and its review by the Housing Committee, Council and Commission, and the public, the Planning Commission and City Council conducted public hearings .on the Element. All public hearings were advertised in the newspaper, 'with notices mailed to interested citizens and community groups. Once the public hearings and related reviews were completed, the City Council formally adopted the Element. 1-6 2.0 SUMMARY OF HOUSING NEEDS, CONSTRAINTS AND OPPORTUNITIES As part of this Housing Element update, a separate Technical Data Report was prepared which documents the population, socio-economic, and housing characteristics of the City of Huntington Beach. This background report helped to define the City's current and projected housing needs and to provide direction in the development of goals, policies and programs to address these needs in the Housing Element. This section of the Housing Element summarizes the findings of housing need from the Technical Data Report. In addition, certain constraints which may discourage the construction of new housing are evaluated, as well as opportunities that will further the development housing in the community. 2.1 Summary of Housing Needs A number of factors will influence the degree of demand or "need" for new housing in Huntington Beach in coming years. The four major "needs" categories considered in this Element include: - Housing needs resulting from increased population growth, both in the City and the surrounding region; - Housing needs resulting from the deterioration or demolition of existing units; - Housing needs that result when households are paying more than they can afford for housing; - Housing needs resulting from the presence of "special needs groups" such as the elderly, large families, female-headed households, households with a handicapped person, and the homeless. 2.1.1 Population Growth The 1988 population of the City of Huntington Beach was nearly 188,000 persons, making it the third largest city in Orange County behind only Anaheim and Santa Ana. During the 1980's, Huntington Beach experienced an average annual growth rate of 1.25%, somewhat below that experienced County-wide. The City's slowing population growth rate -is indicative of the fact that Huntington Beach is an older, more built out community with limited vacant land available for residential development. Growth projections through the year 2010 indicate a further slowing in the City's population growth to an average annual rate of .63%. As discussed under Housing Opportunities, much of the City's future growth will be accommodated through the recylcing of existing residential and non-residential land uses, and through the removal of development constraints on vacant parcels related to oil production, floodplain regulations and fragmented ownerships. 2-1 2.1.2 Substandard Units The accepted standard for housing rehabilitation needs is after 30 years. In 1988, only seven percent of Huntington Beach's housing stock was over 30 years old. However, in ten years, nearly half of the City's housing will be over 30 years of age, indicating the need for continued housing maintenance to prevent widespread housing deterioration. Existing substandard housing in Huntington Beach is primarily concentrated in the City's older residential areas. The City has targeted seven neighborhoods characterized by high levels of housing deterioration for rehabilitation assistance. Through its Community and Neighborhood Enhancement Program, the City offers low interest rehabilitation loans as an incentive for unit upgrading, and in addition provides needed public improvements to these neighborhoods. The Housing Element sets forth policies and programs to encourage the maintenance of the City's housing stock. These policies include: - Encourage the maintenance of the existing housing stock to prevent unit deterioration. - Encourage the rehabilitation of substandard and deteriorating housing. - Promote the removal and replacement of substandard units which cannot be rehabilitated. 2.1.3 Affordability State and Federal standards for housing overpayment are based on an income-to-housing cost ratio of thirty percent and above. Households paying greater than this amount will have less income left over for other necessities, such as food, clothing and health care. It is recognized, however, that upper income households are generally capable of paying a larger proportion of their income for. housing, and therefore estimates of housing overpayment generally focus on lower income groups. The Regional Housing Needs Assessment (RHNA) prepared by SCAG identifies housing overpayment for the City's lower income households. (a) According to the RHNA, an estimated 10,565 (or 45 percent) of Huntington Beach's lower income households were paying more than 30 percent of their income on rent or mortgage payments as of January 1, 1988. Of These overpayers, 5,961 are classified as Very Low Income, and 4,604 are Low Income. (a) Lower income households are defined as households whose total gross income is less than 80 percent of the County median. "Lower income" encompasses both Very Low and Low Income groups. 2-2 The distinction between renter and owner housing overpayment is important because, while homeowners may overextend themselves financially to afford the option of home purchase, the owner always maintains the option of selling the home. Renters, on the other hand, are limited to the rental market and are generally required to pay the rent established in that market. According to the RHNA, of the total 10,565 lower income households identified as overpayers in Huntington Beach, 8,638 were renter households and only 1,927 were owner households. This discrepancy is largely reflective of the tendency of renter households to have lower incomes than owner households. 2:1.4 Special Needs Groups Certain segments of the population may have a more difficult time finding decent, affordable housing due to special circumstances. In Huntington Beach, these "special needs" households include the elderly, handicapped persons, large families, farmworker households, female headed households, and the homeless. Elderly: The special needs of many elderly households result from their lower, fixed incomes, physical disabilities, and dependence needs. An estimated 14,266 elderly (65 years and over) resided in Huntington Beach in 1988, representing 7.6 percent of the total population. The proportion of elderly can be expected to increase as those persons between the age of 35 and 64 grow older. Many elderly households in the City are of lower income, and of these the City's 1988 Housing Assistance Plan (HAP) estimates 1,226 are in need of rental assistance. Escalating housing costs, particularly in the rental market, severely impact housing affordability for the elderly, who are usually on fixed incomes. The housing needs of the elderly can be addressed through the provision of smaller units, second units on lots with existing homes, shared living arrangements, congregate housing, and housing assistance programs. Handicapped: Physical handicaps can hinder access to housing units of traditional design as well as limit the ability to earn adequate income. Huntington Beach's Housing Assistance Plan identifies 1,444 low and moderate income households that have at least one. handicapped person, representing approximately .8 percent of total households within the City in 1988. The City's handicapped can be classified according to the following household groups: City of Huntington Beach Handicapped Households Elderly 86 Single, 425 non-elderly Small Family 749 Large Family 184 Total Households 1,444 Source: City of Huntington Beach, Housing Assistance Plan, 1988-1991 2-3 Housing opportunities for the handicapped can be maximized through housing assistance programs and providing design features such as widened doorways, ramps, lowered countertops, single-level units, and ground floor units. The Housing Element sets forth policies to implement State standards for the provision of handicapped accessible units in new development and, in addition, to encourage housing which is provided for the handicapped to be located in close proximity to public transportation and services. Large Families/Unit Overcrowding: Large families are identified as a group with special housing needs based on the limited availability of adequately sized, affordable housing units. Large families are often of lower income, frequently resulting in the overcrowding of smaller dwelling units and in turn accelerating unit deterioration. Approximately 9.8 percent of the City's households in 1988 had five or more members, translating to 6,878 households. The demand for larger units in the City can be expected to increase based on the City's growing ethnic population and the desire/need of many of thee ethnic groups to cohabitate with extended families. The housing needs of large households can be addressed through the provision of affordably-priced larger housing units and through rental assistance programs. The City has coupled rental assistance with its rental rehab program to offer larger units to overcrowded households, and in addition offers single-family rehabilitation loans for room additions to alleviate overcrowding. Female-Headed Households: Female-headed households tend to have low incomes, thus limiting housing availability for this group. In 1988, an estimated 9 percent, or 6,316, households were headed by a woman in Huntington Beach. The City's Housing Assistance Plan estimates that 4,268 female-headed households (67%) in Huntington Beach have dependent children under 18 years of age. Thus, providing housing opportunities for this group relates both to affordability and services related to the care of children. Farmworkers: The special housing needs of many farmworkers stem from their low wages and the insecure nature of their employment. Those persons working in the farming industry have been counted by the 1980 U.S. Census and are also included in the City's 1984 Housing Element. According to the Census, approximately one percent of the total labor force in Huntington Beach was employed in farming, forestry, or fishing. According to the City's Housing Element, there were 878 persons employed as farmers residing in the City in 1984, or .6 percent of those persons aged 18 and over. Housing opportunities for farmworkers can be enhanced by expanding the City's affordable housing stock. Homeless: Throughout the country, homelessness has become an increasing problem. Factors contributing to the rise in homeless include the general lack of housing affordable to low and moderate income persons, increases in the number of persons whose incomes fall below the poverty level , reductions in public subsidy to the poor, and the de-institutionalization of the mentally ill . Based on estimates by the Orange County Homeless Issues Task Force, the County's homeless population consists of 2-4 approximately 8,000 to 10,000 individuals, some of whom are located in Huntington Beach. As a beach community, the City attracts numerous individuals who congregate along the beach, under the pier, by the Santa Ana River bed, and in Central Park. The Episcopal Service Alliance (ESA) , an ecumenical organization in Huntington Beach which provides social services for homeless, reported for February 1989 the number and types of homeless which sought their assistance. As the figures below reveal , the majority of homeless seeking assistance are couples with children (195) and lone females with children (152) . These totals, however, represent only a portion of the actual number of homeless in the City. ESA indicates that as referrals of the service continue to spread, the total number of homeless reported continues to increase every month. City of Huntington Beach Homeless Seeking Assistance Total Type Individuals Homeless with no shelter 17 Homeless in Motels 21 Homeless and Mentally I11 3 Homeless Families 24 Couples 12 Couples with children 195 Lone Females 16 Lone Females with children 152 Lone Males 37 Lone Males with children 4 Total 481 Source: Episcopal Service Alliance, February 1989 The City currently operates a program to provide housing assistance, along with other social services, to single parents who are currently homeless or at risk of becoming homeless. In addition, the Housing Element calls for the City to provide financial assistance to groups which provide services to the area's homeless population including a new youth shelter set to open in the City. As part of the current update to the City's Zoning Ordinance, appropriate zones will be identified for the development or rehabilitation of transitional housing and emergency shelters for the homeless. 2-5 2.2 Housing Constraints Actual or potential constraints on the provision and cost of housing affect the development of new housing and the maintenance of existing units for all income levels. Market, governmental , infrastructural , and environmental constraints to housing development in Huntington Beach are discussed below. 2.2.1 Market Constraints The high cost of renting or buying adequate housing is the primary ongoing constraint to providing adequate housing in the City of Huntington Beach. High construction costs, labor costs, land costs and market financing constraints are all contributing to increases in the availability of affordable housing. Construction Costs: The single largest cost associated with building a new house is the cost of building materials, comprising between 40 to 50 percent of the sales price of a home. Overall construction costs rose over 30% percent between 1980 and 1988, with the rising costs of energy a significant contributor. Construction costs for wood frame, single- family construction of average to good quality range from $40 to $55 per square foot, custom homes and units with extra amenities running somewhat higher. Costs for wood frame, multi-family construction average around $42 per square foot, exclusive of parking. A reduction in amenities and quality of building materials (above a minimum acceptability for health, safety, and adequate performance) could result in lower sales prices. Additionally, pre-fabricated, factory built housing provides for lower priced housing by reducing construction and labor costs. An additional factor related to construction costs is the number of units built at the same time. As the number of units developed increases, construction costs over the entire development are generally reduced based on economies of scale. This reduction in costs is of particular benefit when density bonuses are utilized for the provision of affordable housing. Redevelopment set-aside monies have been allocated to a "private market leveraging" program in which the City writes down development costs in exchange for affordable units. Land: Land costs include the cost of raw land, site improvements, and all costs associated with obtaining government approvals. The limited supply of developable vacant land in Huntington Beach has accounted for a steady increase in raw land costs. Residential land in Huntington Beach cost an average of $6 to $8 per square foot in 1984, whereas land costs in 1989 averaged between $10 and $13 per square foot on parcels with single-family zoning and $20 and $25 per square foot on parcels zoned for multi-family development. It is estimated that these costs contribute 20 to 25 percent to the final sales price of a new home. Left alone, the rapidly escalating market price of land will tend to encourage mainly higher priced development. Higher density zoning could reduce the cost per unit 2-6 of land, but land zoned for higher densities commands a higher market price. For this reason, density bonuses rather than zoning changes may be the preferred vehicle for reducing land costs. The Housing Element identifies the use of land assemblage and write-down as an incentive for the provision of affordable units. Labor Costs: Labor is the third most expensive component in building a house, constituting an estimated 17% of the cost of building a single-family dwelling. The cost of union labor in the construction trades has increased steadily since April 1974. The cost of non-union labor, however, has not experienced such significant increases. Because of increased construction activity, the demand for skilled labor has increased so drastically that an increasing number of non-union employees are being hired in addition to unionized employees, thereby lessening labor costs. Financing: While interest rates have fallen more than 10 percent from their near 20 -percent high in the early 1980s, they still have a substantial impact on housing costs which is felt by renters, purchasers and developers. It should be noted that some mortgage financing is variable rate, which offers an initial lower interest rate than fixed financing. The ability of lending institutions to raise rates to adjust for inflation may cause many existing households to overextend themselves financially, as well as returning to a situation where high financing costs substantially constrain the housing market. An additional obstacle for the first-time home buyer continues to be the 10-20% downpayment required by lending institutions. The median sales price of a single-family home in Huntington Beach (1988) was $222,000. A $199,800 mortgage (10% down payment) amortized over 30 years at an interest rate of 10.5% would result in monthly house payments of $1,827. This level of payment eliminates Huntington Beach's very low, low and moderate income households from the for-sale housing market. Condominiums do, however, offer an alternative homeownership opportunity for many of the City's moderate income households. Interest rates are determined by national policies and economic conditions, and there is little that local governments can 'do to affect these rates. Jurisdictions can, however, offer interest rate write-downs to extend home purchase opportunities to lower income households. Through its mortgage revenue programs, the City provides interest rate write-downs to benefit Low and Moderate Income households. A special multi -family unit interest rate write-down program is being developed by the City to conserve existing Federally-subsidized housing projects. Finally, the City is developing a shared equity program for downpayment assistance to first-time homebuyers and is exploring the implementation of a mortgage credit certificate program. Profit, Marketing and Overhead: Developer profits generally comprise 10-15°% of the selling price of single-family homes and slightly lower for condominiums. However, in communities like Huntington Beach where the market demand for housing is high in comparison to the available housing supply, and home purchasers often desire more amenities, developers are able to command higher prices and often realize greater margins of profit. 2-7 Rising marketing and overhead costs have contributed to the rising costs of housing. Inflation has spurred much of the increase in marketing and overhead. Intense competition among developers has necessitated more advertising, more glamorous model homes and more expensive marketing strategies to attract buyers. 2.2.2 Governmental Constraints Housing affordability is affected by factors in both the private and public sectors. Actions by the City can have an impact on the price and availability of housing in the City. Land use controls, site improvement requirements, building codes, fees and other local programs intended to improve the overall quality of housing may serve as a constraint to housing development. Land Use Controls: As indicated in the Section on Housing Opportunities, an estimated 4,997 new residential dwelling units could be developed on unconstrained vacant lands in Huntington Beach under the General Plan. Additional residential development in the City will , however, be accommodated through several other means, including development on under- utilized residential parcels, on non-residential land, and on surplus school sites. Considering the potential from all these sources, a total of 7,527 additional dwelling units could be accommodated in Huntington Beach. SCAG has estimated a future housing need of 6,228 new units in the City through the year 1994. The Plan thus provides for a residential development capacity which is more than adequate to serve projected future housing demand. The Land Use Plan cannot, therefore, be interpreted as a constraint to the provision of affordable housing, particularly since 3,676 units are designated for higher density housing (Medium High and High Density Residential ) and can more readily be priced to meet the needs of lower income households. Fees and Improvements: Various fees and assessments are charged by the City to cover the costs of processing permits and providing services and facilities, such as utilities, schools and infrastructure. Almost all of these fees are assessed through a pro rata share system, based on the magnitude of the project's impact or on the extent of the benefit which will be derived. However, these fees contribute to the cost of housing and may constrain the development of lower priced units. The Housing Element calls for the City to monitor all regulations, ordinances, departmental processing procedures, and residential fees related to rehabilitation and/or construction to assess their impact on housing costs. The City's Senior Citizen Residential Suffix Zone establishes reduced development standards (e.g. , parking requirements) to lessen the cost of developing housing for the elderly. Building Codes and Enforcement: The City of Huntington Beach has adopted the State Uniform Building, Housing, Plumbing, Mechanical and Electrical Codes. These codes are considered to be the minimum necessary to protect the public health, safety and welfare. The local enforcement of these codes does not add significantly to the cost of housing. 2-8 Local Processing and Permit Procedures: The evaluation and review process required by City procedures contributes to the cost of housing in that holding costs incurred by developers are ultimately manifested in the unit's selling price. One potential way to reduce housing costs is to reduce the time for processing permits. As review times are already streamlined in the City, cost savings from "fast track" processing would be minimal . Nonetheless, as land holding costs can run over $1,000 per unit for a 9 to 12 month period, the City is considering developing an expedited processing procedure for residential projects with an affordable component. 2.2.3 Environmental and Infrastructure Constraints Portions of Huntington Beach are exposed to a variety of environmental hazards and resources which may constrain the development of lower priced units. In addition, deficiencies exist related to the provision of infrastructure to service new residential development. Floodplain: Situated on a low-lying plain and bounded by the Santa Ana River, Huntington Beach faces significant flood hazard. Over half the City's acreage, and approximately 70-80% of its residentially designated acreage, falls within the Flood Hazard Zone as defined by the Federal Emergency Management Agency (FEMA) . FEMA regulations require that all new residential development be graded up above the 100-year flood elevation which ranges from approximately one to 11 feet in the City. These restrictions on development in the floodplain results in a reduction in the number of units that can be built, increases the costs of construction, and slows down development. Oil Resources: Huntington Beach is historically an oil town. The numerous oil facilities currently operating in the City serve to reduce the amount of land currently available for development. While residential projects can sometimes be developed around producing wells, often development must be postponed until oil production halts and facilities are abandoned (20 to 30 years) . The presence of oil facilities thus reduces the amount of acreage available for development in the near future and/or increases the cost of development. The City's Redevelopment Agency is currently working with a private oil company in developing an oil consolidation site in downtown Huntington Beach. By consolidating the City's oil wells and storage tanks onto a single site, the City's "oil lots" will be opened up for development. Approximately 90 percent of the City's oil lots have been purchased by the oil company, with the goal of completing the consolidation site within a two year period. In addition to the oil consolidation site, the City is working with property owners to implement measures to mitigate constraints to development on sites with remaining oil facilities. These measures include buffering/screening existing oil islands, abandonment of oil wells, and creation of Specific Plans. 2-9 Hazardous Waste: Because of the long history of oil recovery operations in Huntington Beach, some vacant residential properties contain hazardous wastes related to abandoned oil wells, oil pipelines, or potential gas risk. These contaminated sites will require clean up prior to their development, thus adding to the costs of developing on these sites. Public Services and Facilities: As a highly urbanized community, most areas of the City are already served by sewer lines, water lines, streets, storm drains, telephone, electrical and gas lines. However, a major area of vacant land east of the Bolsa Chica wetlands area is designated for Residential Estate has remained undeveloped due to the lack of water and sewer lines and storm drains in the area. To facilitate development in this area, the recently completed Ellis Goldenwest Specific Plan provides for necessary infrastructure improvements to be installed over the next few years. This Specific Plan will also help to alleviate another constraint to development in this area, fragmented land ownership. 2-10 2.3 Housing Opportunities This section evaluates the potential additional residential development which could occur under the City's General Plan and zoning on vacant and underutilized land. 2.3.1 Vacant Sites Vacant land planned for residential development is relatively scarce in Huntington Beach. Approximately 725 acres, or six percent, of the City' s total 11,918 residential acres are currently vacant. Under existing zoning and general plan designations, these residential acres could support a maximum buildout of 7,587 additional housing units. However, as discussed in the previous section on environmentally constrained lands, much of the City's vacant residential land has been subject to development constraints related to oil production and fragmented ownerships. The City is actively working with property owners to remove these constraints by creating an oil consolidation site, developing specific standards to ensure compatibility between oil islands and residential uses and through implementation of Specific Plans. Through the City's activities, the following four areas which had previously been constrained due to oil production activities will now be available for residential development. These areas are illustrated in Figure 1, and their dwelling unit capacity described below: Area #1: This parcel is approximately 19.69 acres in size and is designated for High Density Residential , permitting up to 35 dwelling units per acre. While the property has been historically utilized for oil production, the few oil wells remaining on the site are in the process of being removed. The property owner has submitted development plans to the City for 331 attached townhome units on the site. Construction of these units is anticipated to begin in Spring 1990. Area #2: The Redevelopment Agency is currently working with a private oil company in developing an oil consolidation site in downtown Huntington Beach. Existing oil facilities located on the 20.72-acre Area #2 site are to be relocated on the oil consolidation site. Existing High Density Residential zoning on the site would .permit the development of approximately 725 multi-family dwelling units on the property. Area #3: This area consists of approximately 47.62 acres designated as Residential Estate Density (2 du/acre) . The site is located in the Holly-Seacliff Master Plan area adjacent the proposed linear park. While the area had previously been identified as constrained by oil production, the Master Plan provides for mitigation of oil constraints, through abandoning some wells and creating "oil islands" with remaining on-site oil facilities. By mitigating restrictions on development, approximately 95 single-family dwelling units will be able to be accommodated on this site. 2-11 G( IC '(l ♦..i r° FAG r i �ro-2 �♦ ��1 ya i s IZF 01 .11eado..la,k , A6port ■ iAREA 4 �,y ra0 — AREA 3 • n,n".,gion f'j�mj'��j / ♦r ASCON it.,,bou, IIII��IIIIIII I r`' -PROPERTY f• BOLSA CHICA Ldisw Compa • Sea Cliff Cenerat4,g ' fnuntry Club '/ Plant., PAC6tC 1. ...•� 3'....... AREA 2 1 �_ f T��� +r • I rtGs+wn. J f` A CCASI AREA 1 P A C F I C O C E A N 0 3636 rc� K North scale In wo FIGURE T PREVIOUSLY CONSTRAINED LANDS SUITABLE fOR RESIDENTIAL DEVELOPMr.N1 1 ! `I Area #4: Similar to Area #3, this 38.48 acre site is located in the Holly-Seacliff Master Plan, which provides for mitigation of existing oil constraints. The Master Plan designates this site for an overall average density of seven dwelling units per acre, providing for a total of 269 dwelling units. Through the City's efforts, 126 acres of land which had previously been constrained by oil production activities will be opened up to development. This residential acreage will provide for an increase in dwelling units, ranging from low density estate housing, to high density apartments and condominiums. The City will continue to explore and inventory sites for housing development. A potential target site for higher density housing includes the McDonnell Douglas property located at Bolsa Avenue. Table 1 provides a breakdown of the number and type of additional residential dwelling units which could be constructed in Huntington Beach under the General Plan. Of the City's total 725 vacant residential acres, 478.8 acres can be considered unconstrained and available for development over the five-year period of the Housing Element. This acreage will support a maximum buildout of 4,997 dwelling units, ranging in density from 2 to 35 units per acre. Nearly half (45 percent) of the potential dwelling units are the Medium-High and High Density residential land use categories, providing opportunities for lower cost housing development. Approximately one-quarter of these potential units are designated for Medium Density Residential , indicating a significant proportion of future residential growth will be in the form of duplexes and townhomes and lower density apartments and condominiums. Single-family homes will comprise approximately one-quarter of the City's future residential growth. A recently-adopted Specific Plan for the Ellis Goldenwest area will serve as a vehicle for -consolidating land ownerships, providing for approximately 600 residential estate dwelling units. 2.3.2 Underdeveloped Sites In addition to development on vacant lands, there is the potential for new residential development on sites which are currently developed at densities lower than those permitted under the General Plan and zoning. In the Townlot, Oldtown and Downtown areas, many of the areas designated for densities of 15 units/acre are currently developed with single-family and lower density multi-family uses. Recycling of these lower density uses occurs when the intensity of use allowed in the zone more than offsets the costs of acquiring the improved site, demolishing the existing units, and constructing new higher density units. For the past several years, substantial recycling activity has been occurring in the Townlot, Oldtown and Downtown areas indicating that permitted densities are high enough to warrant recycling. Interestingly, while City zoning permits densities up to 15 units per acre in these areas, the market demand for single family homes has resulted in the majority of replacement units developed as single-family detached units. Single-family residential uses in the Townlot, Downtown and Oldtown areas are predominately developed on 50' x 115' and 25' x 115' sized lots. The recycling trend in these areas 2-13 TABLE 1 CITY OF HUNTINGTON BEACH VACANT LANDS SUITABLE FOR RESIDENTIAL DEVELOPMENT: 1989 Total Unconstrained 0 Vacant Potential Vacant Potential Total Land Use Catagory Acreage DUs Acreage DUs DUs Residential Estate 222.0 724 182.6 605 12% (2-4 du/ga) Residential Low Density 98.39 688 86.41 605 12% (7 du/ga) Residential Medium Dens. 159.73 2,407 77.91 1,169 24% (15 du/ga) Residential Medium-High 17.55 439 17.55 439 9% (25 du/ga) Residential High Density 62.05 2,172 62.05 1,813 36% (35 du/ga) Planned Community 165.28 1,157 52.28 366 7% (7 du/ga) TOTAL 725.00 7,587 478.8 4,997 100% Source: City of Huntington Beach Community Development Department, January 1989. 2-14 has been to demolish the existing single-family structure, and replace the unit with either two or three single-family units. Table 2 illustrates the level of recent recycling activity, with 43 single-family units demolished in these areas in 1988, and 26 in the first six months of 1989. In order to estimate the net increase in residential development attributed to recycling over the five year period of the Housing Element, recycling activity over the past 18 months can be applied to the 1989-1994 period. Replacement units can be conservatively estimated at a ratio of two-to-one, although it is likely many single units will be replaced at a three-to-one ratio. Based on these assumptions, it is estimated that the City will experience an annual recycling of 47 existing units, to be replaced with a total of 94 new units. Applying this annual recycling rate to the five year period of the Housing Element translates to an estimated net increase in 235 single family units which can reasonably be expected to develop during the 7/89 - 6/94 period. It should be mentioned, however, that many of the older residences in these areas are identified as historically significant on a local survey, and their removal would need to be addressed under CEQA. TABLE 2 CITY OF HUNTINGTON BEACH RESIDENTIAL RECYCLING ACTIVITY (OLDTOWN, TOWNLOT, AND DOWNTOWN AREAS) Single-Family Units Recycled to Higher Densities 1988 Jan-June 1989 Oldtown 8 8 Townlot 32 17 Downtown 3 1 Total 43 26 Source: City of Huntington Beach Community Development Department 2-15 2.3.3 Second Units Intensification of development in existing residential areas could also occur through the addition of "second units" on single-family lots. Second units, or granny flats as they are commonly known, are dwelling units constructed on the same parcel on which the primary single-family unit is located, providing independent living quarters which the homeowner may rent out or provide for a family member or other persons(s) . Second units provide a cost effective means of serving additional development through the use of existing infrastructure, and provide affordable housing for low and moderate income small households. Second units have the additional benefit of allowing many older persons to remain in their homes by providing additional income and security. The City has adopted an ordinance to facilitate and regulate the development of second units. While the ordinance does require a Conditional Use Permit for development of second units, reasonable parking and other requirements have been established so as not to discourage their development. Planning Department records indicate approximately 24 applications for second units have been submitted to the City since 1984, averaging about five applications per year. Using this data to estimate the number of future second unit applications suggests that approximately 25 new applications could be expected over the five year period of the Housing Element. 2.3.4 Redevelopment Areas Five redevelopment project areas have been established in Huntington Beach: Huntington Center, Oakview, Talbert-Beach, Yorktown-Lake, and Main-Pier. Activities involving residential use include affordable senior housing, rehabilitation of existing units, residential/commercial mixed-use, and market-rate single family and multi-family development. Within the five year period of the Housing Element, the City is commited to working with the development community to achieve an additional 900+ units in the Main Pier redevelopment project area. These units will be developed on property contained within the following three projects: The Waterfront: Pursuant to the approved Development Agreement for The Waterfront project, a total of 894 high density residential units (35 du/acre) may be constructed north of Walnut Avenue between Beach Boulevard and the northerly property boundary. Approximately half of the units (448) are to be constructed in the first phase, scheduled for completion in 1992, with an additional one-quarter of the units (223) to be constructed in 1994 as Phase 2, thereby totaling 671 units to be developed within the five year time frame of the Housing Element. Pier Colony: This high density condominium project (32 units/acre) located at Pacific Coast Highway and Second Street is scheduled for completion in July 1990. It will consist of 130 one- and two-bedroom condominiums. 2-16 R Main Pier Phase II: This mixed-use project located at Pacific Coast Highway and Sixth Street is currently in the planning stages. At this time, 103 medium-high density units (25 units/acre) are proposed, with a scheduled completion date of June 1991 . 2.3.5 Non-Residential Land In addition to land which is currently designated for residential development, the City is in the process of redesignating a non-residential parcel to accommodate residential land uses. City Council and Coastal Commission have ammended the General Plan to redesignate the 40-acre Ascon property from Public, Quasi-Public, Institutional to Residential Medium Density. (The site's general location is identified on Figure 1) . The conceptual plan approved for this property provides for a total of 600 dwelling units at an average density of 15 du/acre. The Ascon site has historically been utilized as a landfill , and will require site clean-up to remove contaminated soil . The applicant is in the process of preparing a remediation plan for soil clean-up, with site clean-up estimated to be complete within the next two years. Residential development on the site will immediately follow site clean-up, and may be expected to be completed by the end of 1992. 2.3.6 Surplus Land Two former school sites are presently either under construction or in the entitlement stage for residential development in Huntington Beach. Crestmore Estates is a 52-unit low density single-family project which is now under construction. Heritage Village is a mixed development project which is still in the entitlement stage. It is a 15.2 acre, 520 unit residential/commercial project which is proposed at a density of 34 units per acre. The zoning will be a Specific Plan. In addition to these school sites; four other residentially-zoned school sites are being proposed for residential development by the school districts. Huntington Beach Elementary District has proposed 9.75 acres for residential on its Lebard School site, and Fountain Valley School District has advertised for bids on its 9.10 acre Bushard School site. These two sites are both zoned R-1/7du/acre, providing for the development of 132 dwelling units. Two other surplus school sites, Golden West College (6.81 acres) and Wintersburg High School (14 acres) , have been advertised for bids by the school districts. These sites are zoned single-family residential and residential -agriculture respectively, and could accommodate a total of 62 dwelling units. However, development under this twenty year old base zoning would be incompatible given the location of these sites along major arterials and surrounding higher densities. These sites will likely be rezoned to accommodate higher density residential development consistent with their setting. 2-17 2.3.7 Bolsa Chica The Bolsa Chica area is another very significant housing opportunity for the City. The City has initiated annexation procedures for the 1,635 acre vacant area known as the Bolsa Chica. While nearly two-thirds of the Bolsa Chica is comprised of a State Ecological Reserve and wetland, the remaining 400-plus acres located immediately adjacent exiting residential neighborhoods, are planned for residential development. The Bolsa Chica is located within the City's sphere of influence and is surrounded on all three sides by the City of Huntington Beach (refer to Figure 1) . At the meeting of October 2, 1989, the City Council selected an outside law firm to assist the City in preparation of a development/pre-annexation agreement for the Bolsa Chica area. In addition, a memorandum of understanding on the Bolsa Chica Environmental Impact Statement (EIS) was approved by Council at their meeting of October 16, 1989. Property owners in the Bolsa Chica area include Signal Landmark Inc. , State Lands Commission, the Metropolitan Water District, Ocean View School District, Donald Goodell , the Fieldstone Company and the Huntington Beach Company; all have been supportive of annexation to the City. The anticipated time frame for annexation includes completion of the Final EIS by Fall 1991, with annexation to occur in early 1992. Development is expected to occur within 3 years and will include a minimum of 4,200 and a maximum of 5700 residential units. A coalition representing five interest groups (Orange County, State Lands, property owner Signal Landmark, Inc. , a citizens interest group Amigos de Bolsa Chica, and the City) is meeting to assist in the determination of the number of residential units; Figure 2 provides a conceptual plan of development in the Bolsa Chica as proposed by the coalition. The actual number of units is uncertain at this time and will be determined based upon an ongoing traffic study, availability of sewer and water, and additional parameters to be discussed in the EIR. City services appear adequate to serve the project development and the City is participating in the Bolsa Chica traffic modeling project to insure that circulation concerns are addressed. 2.3.8 Availability of Public Services and Facilities As a highly urbanized community, public facilities are available to facilitate development throughout Huntington Beach. All of the land designated for residential use in the Low Density, Medium Density, Medium-High Density and High Density categories is presently served by sewer lines, water lines, streets, storm drains, telephone, electrical and gas lines. While areas designated for Residential Estate are not currently served by sewer and water lines and storm drains, the Ellis Goldenwest Specific Plan provides for necessary improvements to be installed over the next few years. This Specific Plan will also help to alleviate another constraint to development in this area, fragmented land ownership. 2-18 RESIDENTIAL DENSITIES UP TO 6.5 DU/AC .'�� ` •- I U I UP TO 12.5 DU/AC •%'���: = •j ---I LINEAR r-- UPTOt8.0DU/AC / /., _ -_ '..!.� A PARK / L.---• ,/ .P.: .�<-. - •! ESHA �///q�� M ®- N Y ►� A DS - TL I ��'' W E P F• - ESHA / F l _ _ 1 /r _ ACREAGE SUMMARY _ - I--��•- - - - - 'OPEN SPACE „> LAND USE TYPE ACRES RESIDENTIAL 412.3 - ��-'\ / '`-''L ,S`=—. ,:. :.,?�•:.` ^ L1t I �C WEE LANi1 SiFSHA/OPEN SPACE 1104.9 •`�.r' T i`:�.:':is ,p�:.1 ?=�f':� / LINEAr1 PAP.h/ESHA 50.9 �r — :I` ' DES'GNATED ROADWAYS 53.7 :�i;;';• �'`-----__/ �\` 1: 1 ^ i- ��._ A J a FLOOD CONTROL CHANNEL 13.2 �'��,� _ •�� /„/ 11� ��1�• TOTAL 1635.0 �3�:' /';: {�� .� j•� WETLANDS C/ ESHA / OPEN SPACE WETLANDS ESHA / OPEN SPACE ' % y WETLANDS> _ ESHA -�. C OPEN SPACE / LINEAR J' ✓`.;,/ __ 1 PARK / .... ESHA WETLANDS -E LANDS ESHA / OPEN SPACE ----_------•-_---- 1 \ •. {{INON-NAVIGABLE ;! I'OCEAN CONNECTION SOURCE: VALE SPECK TAYIOR PACIFIC OCEAN. PACIFIC OCEAN rCha K North. ---' FIGURE 2 DOLSA CHICA. RESIDENTIAL,DEVEIOPMENT PLAN 2.3.9 Residential Development Potential Compared with Huntington Beach's Housing Needs As indicated in Section 3.4 of the Housing Element, the Regional Housing Needs Assessment (RHNA) prepared by SCAG has ident•ifed a future housing need for Huntington Beach of 6,228 units to be developed over the next five years (1989-1994) . Combining the residential development potential on vacant, underutilized, redevelopment, non-residential and surplus sites, an estimated 7,527 additional units(a) could be developed in the City (refer to Table 3) . This would indicate that the City's General Plan and zoning provide for a residential development capacity which is adequate to accommodate the City's share of regional housing needs. In addition, with annexation of the Bolsa Chica, an estimated 4,200 to 5,700 additional dwelling units could be accommodated in Huntington Beach. In terms of development opportunities for lower income households, approximately half of potential residential growth is allocated to higher density housing (Medium-High and High Density Residential ) , which can more readily be priced to meet the needs of Very Low and Low Income households. However, even at these higher densities, the City will need to offer incentives to private market developers to ensure the provision of units affordable to Very Low and Low Income households. Condominium units will provide homeownership opportunities for some smaller, Moderate Income households though ownership assistance will still be necessary to provide many of the City's Moderate Income households the option of home purchase. (a) The ultimate buildout potential in the City is approximately 10,000 additional dwelling units, reflecting the approximate 2,500 units constrained from development over the next five years. 2-20 1 TABLE 3 CITY OF HUNTINGTON BEACH POTENTIAL RESIDENTIAL DEVELOPMENT SUMMARY RESIDENTIAL DWELLING UNIT POTENTIAL Under- Land Use Vacant utilized Second Redevelop- Non-Resi - Surplus Category Land Land Units ment Areas dential Land Land TOTALS Residential 605 14 619 Estate Residential 605 235 25 232 1,097 Low Density Residential 1,169 600 1,769 Medium Density Residential 43,9 103 542 Medium-High Density Residential 1,813 801 520 3, 134 High Density Planned 366 366 Community TOTALS 4,997 235 25 904 600 766 7,527 2-21 1 vl 3.0 HOUSING PLAN 3.1 Evaluation of Accomplishments Under 1984 Housing Element State Housing Element law now requires communities to assess the achievements under adopted housing programs as part of the five year update to their Housing Elements. These results should be quantified where possible, e.g. rehabilitation results, but may be qualitative where necessary, e.g. mitigation of governmental constraints. These results then need to be compared with what was projected or planned in the earlier element. Where significant shortfalls exist between what was planned and what was actually achieved, the reasons for such differences must be discussed. The following section provides an overview of the specific program goals from the Huntington Beach 1984 Housing Element, and an assessment of the actual accomplishments under these programs during the 1984-1989 period of the Housing Element. These programs are organized around the five major issue areas addressed in the Housing Element. ISSUE #1- ACCESSIBILITY Program: Aid in the production of 164 senior citizen units in the Talbert-Beach redevelopment area through land acquisition and write-down. Accomplishment: In 1985, the Huntington Beach Redevelopment Agency, in partnership with a private developer, completed Emerald Cove senior housing project. The project consists of 164 apartment units at 50 percent below market rental rates. This project received a National Certificate of Merit from the U.S. Department of Housing and Urban Development for public/private partnerships. Program: Develop City standards to implement new State and Federal laws for handicapped accessibility in new developments. Accomplishment: The City has adopted the State Uniform Building and Housing Codes which incorporate State requirements for handicapped accessibility. Program: Provide $1500 grants to owners of rental housing to make units accessible to the physically handicapped (refer to page 3-40 for program details) . Accomplishment: Only four grants were issued during the 1984-1989 period. More creative and intense marketing appears to be needed to increase participation. 3-1 c ISSUE #2 - ADEQUATE PROVISION Program: Provide tax-exempt single-family and multi-family mortgage revenue bonds to facilitate the development of affordable units. Accomplishments: On a City-wide basis, the City issued single-family mortgage revenue bonds in the amount of $4,660,000 in 1984 to finance 55 moderate income home purchases. In addition, six multi-family projects, with a total of 402 units affordable to lower income households have been completed. Program: Consider the reduction or waiver of development fees for projects participating in an affordable housing program. Accomplishments: The City has assumed development fees on one Redevelopment Agency sponsored project for the provision of affordable housing. Program: Continue to contract with the Orange County Housing Authority to provide Section 8 rent subsidies to lower income households. Accomplishments: According to the Housing Authority, Huntington Beach has been one of the more aggressive communities in the region pursuing needed rental subsidies. As of March 1989, the City had secured a total of 577 housing vouchers and certificates. Huntington Beach is the only city in Orange County that participates in Project Self-Sufficiency, a program which offers housing vouchers to low-income single parents who are either currently homeless, or at risk of becoming homeless. Program: Review development standards to determine which ones can be relaxed in order to reduce housing costs, and process appropriate code revisions. Accomplishments: Code revisions have been adopted which institute senior development standards with reduced minimum unit sizes and reduced parking requirements. Program: Revise the multi-family zoning ordinance to reduce required recreation space and common open space in smaller projects. Accomplishment: As the City wishes to maintain a minimum level of recreational and open space amenities in all multi -family projects, this program is no longer being pursued. Code revisions have been adopted for senior housing developments to allow greater flexibility in the location of required open space. ISSUE #3 - ADEQUATE SITES Program: Review Division 9 of the City Municipal Code to ensure it reflects Housing Element policies and programs. 3-2 r ' ;j Accomplishments: The City is beginning a comprehensive rewrite to Division 9 of the Municipal Code; appropriate revisions and housing-related ordinances will be incorporated into the Code at this time to reflect Housing Element policies and programs. Program: Investigate the feasibility of using vacated school and park sites and other publicly owned land for affordable housing. Accomplishment: Irby Park is being reviewed as a potential site for affordable housing through the 20% set-aside program. In addition, the City is working with a private developer to construct a housing project on a closed school site, a portion of the units which would be set aside for low and moderate income households. Program: Evaluate land use and zoning designations to determine where increased densities can be utilized to provide for affordable housing. Accomplishment: The City reviews on an on-going basis the potential for density increases for affordable housing projects on vacant and infill sites as they are presented to the City by developers. ISSUE #4 - PRESERVING HOUSING AND NEIGHBORHOODS Program: Continue to make available low interest rehabilitation loans for low-income owner-occupied housing, with a program goal of 25 loans annually. Accomplishment: Approximately 226 owner-occupied rehabilitation loans have been made since 1984, primarily concentrated in the City's designated target areas: Oakview, Commodore Circle, South Shores, Liberty and Downtown/Oldtown. Program: Enhance and preserve the multi-family housing stock within the Oakview neighborhood. Accomplishment: Thirty loans were made since adoption of the 1984 Housing Element in the Oakview neighborhood, for a total rehabilitation of 120 units. Program: Provide low interest rehabilitation loans to investor-owners of multi-family rental housing in targeted revitalization areas, with the goal of rehabilitating 35 units per year. Accomplishment: This goal has been met and exceeded with an average of 50 units rehabilitated per year within the designated target areas. Program: Develop and implement a comprehensive improvement program for Commodore Circle, with the goal of rehabilitating 80 units and initiating occupancy and maintenance standards. 3-3 4 Accomplishment: This program has been completed since adoption of the 1984 Housing Element. All substandard units have been rehabilitated, public improvements have been completed, and all owners have executed a maintenance agreement with the City. Program: Develop and implement a City-wide maintenance ordinance. Accomplishment: The City has recently expanded its code enforcement program to encompass property maintenance violations, and has increased the number of code enforcement officers to four to more adequately address code complaints. ISSUE #5 - PRESERVING AFFORDABILITY Program: Oversee the continued affordability of low and moderate income, units produced with tax exempt financing. Accomplishment: The City has hired a consultant to develop a monitoring program to ensure the continued affordability of low and moderate density bonus units for which public subsidy has been provided. Once in place, bi -annual monitoring will be conducted to verify the income of the tenant, and to verify the continued affordability of the unit. Program: Prepare a condominium conversion ordinance to regulate the conversion of rental housing to ownership units in order to mitigate impacts on affordable rental housing. Accomplishment: The City adopted its condominium conversion ordinance in November 1984 which requires converted units to conform to the requirements of the City's Planned Unit Development (PUD) Ordinance. Since most existing multi-family housing units have been developed to standards that generally require substantially less open space and parking than that required under the PUD Ordinance, these requirements serve as a significant disincentive for condominium conversion. Program: Continue to pursue the production of affordable housing. Accomplishments: The City has participated in numerous affordable housing developments since adoption of its 1984 Housing Element. They have utilized a combination of City incentives, such as density bonus and bond financing, combined with outside funding sources to achieve a total of 391 affordable units. Specific publicly-assisted residential projects with an affordable housing component developed since adoption of the 1984 Housing Element include the following: 3-4 TABLE 4 AFFORDABLE HOUSING DEVELOPMENTS CITY OF HUNTINGTON BEACH: 1984-1989 NAME LOCATION UNITS TOTAL/LOW MOD Brisas Del Mar 409 Utica 44/8 Corona 7916 Stark 8/1 7924 Stark 8/1 7891 Holt 8/1 7901 Holt 8/1 Emerald Cove Talbert & Jolly Lane 164/164 (seniors) Gustine Yorktown & Huntington 21/4 Harbor Gateway Warner & Sims 102/31 Hartfelter Newland & Slater 8/1 Huntington Bayshore Lake & Atlanta 159/34 Huntington Village 16171 Springdale 114/27 (seniors) Ratsui 5081 Dunbar 6/1 Rivermeadows Magnolia and Warner 152/31 Seabridge Villas Beach and Adams 344/69 Stellrecht 16032 Springdale 61/12 •Villa Corsica 19th & Walnut 18/4 Waldman 17230 Elm 7/1 TOTAL 1 232 391 Program: Create and maintain an inventory of sites potentially suitable for affordable housing and refer these to private developers. Accomplishments: The City's Economic Development Department has developed an inventory of potential sites for affordable housing, including vacant lands, park and school sites. In addition, the Planning Department conducted a comprehensive vacant lands inventory in April 1988 which can be utilized to identify additional sites for afforable housing. 3=5 3.2 Goals, Policies, and Program Actions Background The City of Huntington Beach adopted a series of goals and policies as part of its 1984 Housing Element to guide the development and implementation of its housing program. As part of the current Housing Element update, these adopted goals and policies have been evaluated in terms of their effectiveness and actual results in implementation. In addition, the adopted goals and policies were reviewed as to their appropriateness in addressing the housing needs identified in this Housing Element update. The following goals and policies reflect a revision to those previously adopted to incorporate what has been learned from the prior element, and to adequately address the community's identified housing needs. These goals and policies will serve as a guide to City officials in daily decision making. Housing Program The City of Huntington Beach has adopted three goals for its housing program which are consistent with State and Regional housing policies. These goals are: 1 . The attainment of decent housing within a satisfying living environment for households of all socioeconomic, racial , and ethnic groups in Huntington Beach. 2. The provision of a variety of housing opportunities by type, tenure, and cost for households of all sizes throughout the City. 3. The development of a balanced residential environment with access to employment opportunities, community facilities, and adequate services. In order to progress toward the attainment of these goals, the City has committed itself to specific policies and programs. The policies are organized around five issue areas which are identified by the California Department of Housing and Community Development as important priorities in addressing local housing problems. This section presents a discussion of the problems inherent in each of the issue areas, followed by policies adopted by the City to resolve these problems. The program actions intended to effect their solution then are discussed, including anticipated impacts, responsible agencies, funding source, and the time frame for completion of each program. In aggregate, the Element's program actions set forth the following five year housing goals, as detailed in Table 5: Total Units to be Constructed: 7,527 total units/675-750 assisted Total Units to be Rehabilitated: 680 Total Units to be Conserved: 965 - 1,015 A comprehensive discussion of the existing and proposed programs of the Housing Element is contained in Section 3.6: 3-6 TABLE 5 HOUSING ELEMENT PROGRAM SUMMARY Number of Units Program Action to be Assisted New Construction: 1 .2 200 2.2 50-100 2.9 300 2.13 125-150 Total 675-750 Rehabilitation: 1.5 10 1 .6 10 4.2 400 4.3 100 4.4 80 4.6 80 Total 680 Conservation: 2.5 815 2.12 150-200 Total 965-1 ,015 3-7 GOAL 1.0 ACCESSIBILITY Providing housing opportunities for all households regardless of race, color, religion, sex, family size, marital status, national origin, ancestry, age or physical disability is an essential element of a sound housing program. In order to assure non-discrimination in housing, the City contracts with the Orange County Fair Housing Council which investigates complaints of discrimination because of race, ethnicity, marital status, or sex. The Fair Housing Council also handles problems with evictions, rent increases, substandard housing conditions, and disputes regarding deposit returns, as well as arbitrating landlord-tenant conflicts. One problem needing attention is that of handicapped and elderly persons whose access to decent housing may be prevented by architectural barriers. Policies and actions addressing these special needs have been included under accessibility because it is felt that the lack of assistance to these groups may constitute a subtle, if unintended, form of housing discrimination. 1.0 Policies In order to assure accessibility to decent housing for all , the City of Huntington Beach shall : ° Affirm a positive action posture to assure that unrestricted access is available to the community. ° Promote housing which meets the special needs of handicapped and elderly persons. ° Encourage the provision of adequate numbers of housing units to meet the needs of families of all sizes. 1.0 Programs 1 . 1 Action: Continue to utilize the services of the Orange County Fair Housing Council . Anticipated Impact: All complaints of discriminatory practices in housing within the city will receive attention. In addition, OCFHC will provide counseling in landlord-tenant disputes, special assistance for ethnic minority and female-headed households (which includes escort services to locate adequate housing) , bilingual housing literature and video-tape presentations, day-care services, and housing assistance counseling. 3-8 Responsible Agencies: Huntington Beach Economic Development Department (EDD) . Funding Source: CDBG funds. Schedule: Ongoing. 1 .2 Action: The City will continue to make available Redevelopment Agency-owned property within the Talbert-Beach redevelopment area for the construction of senior citizen and/or low and moderate income housing. Provide for reduced development standards through use of the City's Senior Residential Suffix zoning. Anticipated Impact: Aid in production of up to 200 units for senior citizen and affordable housing. Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. Funding Source: Redevelopment Set-Aside Fund. Schedule: Based on final acquisition of parcels. 1.3 Action: Implement state and federal laws for access and adaptability for the physically handicapped. Continually adopt updates to the State Uniform Building and Housing Codes to reflect current accessibility requirements. Anticipated Impact: More locational choice for the physically handicapped due to an increase in the supply of suitable rental units. Responsible Agencies: Huntington Beach EDD and Community Development Department (CDD) . Funding Source: None necessary. Schedule: Ongoing. 1 .4 Action: Continue to coordinate with and financially support the Dayle Mac-Intosh Center to maintain a directory of accessible housing for handicapped persons. Anticipated Impact: Assistance to handicapped persons in locating housing. Responsible Agencies: Huntington Beach EDD and the Dayle Macintosh Center. Funding Source: CDBG funding. Schedule: Ongoing. 3-9 a 1 .5 Action: Actively market grants, through preparation and distribution of information packets, which are available to owners of rental housing for modifications necessary to make units accessible to and suitable for the physically disabled. Anticipated Impact: The provision of an increased number of rental units suitable for physically disabled persons. The five year goal is for modification assistance to ten renter units: Responsible Agencies: Huntington Beach EDD and the Dayle MacIntosh Center. Funding Source: CDBG funds. Schedule: 1990-91 . 1 .6 Action: As part of the ongoing rehabilitation program, fund rehabilitation loans which include improvements to make housing accessible to handicapped persons within designated neighborhoods. Anticipated Impact: An increased amount of locational choice for the physically disabled. The five year goal is for modification assistance to ten owner units. Responsible Agencies: Huntington Beach EDD. Funding Source: CDBG funds, Redevelopment Set-Aside. Schedule: Ongoing. 3-10 ij GOAL 2.0 ADEQUATE PROVISION Adequate provision for the housing needs of all economic segments of the community is an issue of the highest priority in Huntington Beach. For reasons previously discussed, it appears unlikely that market forces alone will produce enough housing that is affordable to low and moderate income households to -meet expected needs. Since decent housing for all is important to the welfare of the entire city, it is particularly important to address this need through the use of those public powers which impact housing. 2.0 Policies To ensure adequate provision of housing for all economic segments of the community, the City of Huntington Beach shall : • Encourage the provision and continued availability of a range of housing types throughout the community, with variety in the number of rooms and level of amenities. ° Encourage both the private and public sectors to produce or assist in the production of housing with particular emphasis on housing affordable to lower income households, as well as the needs of the handicapped, the elderly, large families and female-headed households. ° Utilize incentives where feasible to encourage the production of low and moderate income housing. Provide rental assistance vouchers, as available, for some or all of the affordable units provided. ° Take advantage of existing infrastructure and public improvements to provide additional affordable housing by allowing second units in single-family zoning districts. ° Facilitate the development of mixed-use projects containing residential and non-residential uses which can take advantage of shared land costs to reduce the costs of land for residential uses through General Plan designation and the Specific Plan process. ° Encourage alternative forms of homeownership, such as shared equity ownership, Shared Living Units, and other housing arrangements to encourage affordability. Explore the feasibility of implementing a mortgage credit certificate program (refer to Section 3.6 beginning on page 3-36 for program descriptions) . ° Encourage the development of childcare facilities coincident with new housing development through conditions on project approval at the CUP or EIR level , and review the City's Zoning Ordinance to identify any unnecessary restrictions related to the provision of family day care and childcare facilities in residential zones. 3-11 ° Promote adoption of development standards which reduce housing costs, while ensuring that any adverse impacts are minimized when increasing densities or relaxing standards. • Review all regulations, ordinances, departmental processing procedures, and residential fees related to rehabilitation and/or construction to assess their impact on housing costs, and revise as appropriate. ° Provide the management and personnel resources necessary to carry out identified housing programs and responsibilities. ° Continue and expand utilization of Federal and State housing assistance programs. ° Promote the availability of sufficient rental housing to afford maximum choice of housing type for all economic segments of the community. community. • Review the City's condominium conversion ordinance, and consider revising to allow modified requirements for units which are set aside for low and moderate income households. ° Encourage the retention of adequate numbers of mobile homes and investigate areas for potential new mobile home zoning. ° Continue to enforce the City's mobile home conversion ordinance. ° Continue to coordinate with local social service providers and notify of available City funding to address the needs of the City's homeless population. ° Encourage the provision of alternative housing through replacement housing and/or relocation for low or moderate income households displaced by public or private developments. ° Investigate the development of single room occupancy (SRO) hotels to provide housing opportunities for very low income residents. 2.0 Programs 2.1 Action: Apply to the State Mortgage Bond Allocation Committee for single-family bond allocations to enable below market rate financing to be offered on qualifying projects to moderate income households. Anticipated Impact: Make a greater share of housing stock affordable to first-time buyers. Responsible Agencies: Huntington Beach EDD. Funding Source: Bond proceeds. Schedule: Ongoing. 3-12 2.2 Action: Continue to offer incentives, including density bonus, land write downs, and write downs of other development costs, to for- profit and non-profit developers, for the development of senior citizen and low/moderate housing. Anticipated Impact: Development of between 50 to 100 additional affordable units during the 1989-1994 period. Responsible Agencies: Huntington Beach CDD. Funding Source: Department budget. Schedule: Ongoing. 2.3 Action: Provide consultation and technical assistance to aid private developers in expanding housing opportunities. Anticipated Impact: Increased housing choice and more affordable housing. Responsible Agencies: Huntington Beach CDD and EDD. Funding Sfl urce: Department administrative budgets. Schedule: Ongoing. 2.4 Action: Continue the City's outreach campaign to solicit participation of private developers in affordable housing programs; maintain a roster of interested firms. Anticipated Impact: The production of affordable housing. Responsible Agencies: Huntington Beach EDD. Funding Source: Huntington Beach EDD Administrative Budget. Schedule: Ongoing. 2.5 Action: Continue to contract with the Orange County Housing Authority to administer the Section 8 Housing Assistance/Voucher Program and aggressively pursue the attainment of additional housing vouchers. Anticipated Impact: Consistent with the City's Housing Assistance Plan, augment the current level of rental assistance (577 certificates/ vouchers) , with a five year assistance goal of 238 additional rent subsidies. Responsible Agencies: Huntington Beach EDD and the Orange County Housing Authority. 3-13 Funding Source: Huntington Beach EDD Administrative funds/OCHA, potential use of Redevelopment Set-Aside to augment rental subsidies. Schedule: Ongoing. 2.6 Action: Continue to contract with the Orange County Housing Authority to screen and verify incomes of potential participants in housing programs. Anticipated Impact: Ensure that recipients of affordable housing are qualified for such housing. Responsible Agencies: Huntington EDD/OCHA. Funding Source: Huntington Beach EDD Budget. Schedule: Ongoing. 2.7 Action: Review development standards, such as minimum size, open space, parking, to determine which ones can be relaxed in order to . reduce housing cost; process appropriate code revisions as part of the zoning ordinance update. Anticipated Impact: Reduction in the cost of housing. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budget. Schedule: 1989-90. 2.8 Action: Evaluate the feasibility of developing a specific procedure for fast track processing projects with an affordable housing component. Anticipated Impact: Reduction in holding costs for affordable housing projects, thereby improving the economic feasibility of such projects. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989-90. 2.9 Action: Continue to provide tax exempt mortgage financing for new multi-family housing. 3-14 Anticipated Impact: Increased supply of rental housing stock affordable to lower income households. Based on previous levels of developer participation, the City's goal is to provide mortgage financing for three projects (estimated 300 units) over the next five years. Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. Funding Source: Tax exempt financing. Schedule: Ongoing as projects meet criteria. 2. 10 Action: Continue to operate Project Self-Sufficiency to address the needs of low income, single parents by offering rental assistance, job training,and other needed services. Anticipated Impact: Curtail additional single parent households from becoming homeless. Responsible Agencies: Huntington Beach EDD. Funding Sources: CDBG funds and private donations. Schedule: Ongoing. 2. 11 Action: Continue to offer financial assistance to local groups which provide services to the area's homeless population: Provide public notification of the availability of funds through newspaper advertisements, as well as direct notification to local service providers. Anticipated Impact: Address the needs of the City's homeless through provision of 15% of the City's CDBG budget for social services. Responsible Agencies: Huntington Beach EDD. Funding Source: CDBG funds. Schedule: Ongoing. 2. 12 Action: Actively market the City's shared housing program to increase the number of roommate matches made between senior and non-senior citizens. Utilize the City's Public Information Office to advertise the program through such methods as Public Television and placement of brochures in local community centers. Investigate developing a pilot project to match residents of varying age categories which links up with Project Self-Sufficiency. 3-15 I Anticipated Impact: Provide expanded opportunities for individuals to remain in their homes, while providing affordable housing options for those who do not own a home. Goal is to provide for 30-40 roomate matches per year. Responsible Agencies: Community Services Department, Huntington Beach EDD. Funding Source: Department Budgets. Schedule: 1990. 2. 13 Action: Develop and implement a shared equity program to provide down payment assistance to qualifying low and moderate income first time homebuyers and explore the feasibility of implementing a mortgage credit certificate program. Anticipated Impact: Provide homeownership opportunities for 25-30 low and moderate income first time homebuyers annually. Responsible Agencies: Huntington Beach EDD. Funding Source: Redevelopment Set-Aside. Schedule: Establish program within one year. 2.14 Action: Continue to provide for the housing needs of large families through the provision of a) rent certificates for larger units to accommodate overcrowded households as part of the Rental Rehab Program, and b) single-family rehabilitation loans for room additions to alleviate unit overcrowding. Anticipated Impact: Provide adequately sized affordable housing which meets the needs of the City's large families. Responsible Agencies: Huntington Beach EDD and Orange County Housing Authority. Funding Source: CDBG funds and Section 8 certificates/vouchers. Schedule:- Ongoing. 2. 15 Action: Review the City's Zoning Ordinance to identify any unnecessary restrictions related to the provision of family day care and childcare facilities in residential zones. Anticipated Impact: Enhanced opportunities for day care, providing needed services to female-headed and family households. 3-16 Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedule:- 1989-90. 2. 16 Action: Investigate the use of specific plans to promote a balance of housing and open space, and to reduce the per unit cost of housing through such methods as clustered housing, zero lot line on smaller lots, flexible setbacks, reduced parking standards and lot sizes. Anticipated Impact: Reduced housing development costs and associated decreases in sales/rental prices. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989-90. 2. 17 Action: Investigate the feasibility and a possible ordinance to permit Single Room Occupancy (SRO) hotels as a mechanism for providing affordable housing. Anticipated Impact: Facilitate the development of SROs. Responsible Agency: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: Complete study and prepare a report within one year. 2. 18 Action: Encourage developers to pursue "gap" financing from the Orange County Housing Authority for residential projects offering affordable units. Anticipated Impact: Increase the supply of affordable housing by offering financial assistance to project developers. Responsible Agency: Huntington Beach EDD. Funding Source: Orange County Housing Authority. Schedule: Ongoing. 3-17 ° Utilize surplus park and/or school sites for residential use where appropriate and consistent with the City's General Plan. • Permit the development of manufactured housing in single-family zones, and accommodate the development of mobilehome parks through the City's Manufactured Housing Overlay Zone. 3.0 Programs 3.1 Action: Maintain an inventory of vacant land in the City and make available to interested parties for use in identifying potential residential development sites. Anticipated Impact: Provide information which may expedite identification of residential development opportunities in the City. This may in turn expedite the consolidation of fragmented ownerships and the development of housing. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: Ongoing. 3.2 Action: Review Division 9 of the City Municipal Code to ensure it reflects Housing Element policies and programs while maintaining adequate standards for development. Anticipated Impact: Ensure consistency in carrying out the housing program while maintaining quality development. Responsible Agencies: Huntington Beach CDD. Funding Source: Department budget. Schedule: 1989-90. 3.3 Action: Monitor changes in industrial and commercial land uses to assess their impact on residential land use. Anticipated Impact: This action is intended to reflect changing conditions in the city in order to adequately respond to current housing needs. Responsible Agencies: Huntington Beach CDD. Funding Source: Department budget. Schedule: Ongoing. 3-19 GOAL 3.0 STANDARDS AND PLANS FOR ADEQUATE SITES A key element in satisfying the housing needs of all segments of the community is the provision of adequate sites for housing of all types, sizes, and prices. This is an important function of both zoning and General Plan land use designations. Since the City is already developed to a large extent, provision for future housing needs may require the rezoning of some areas where appropriate to meet housing needs and where economically feasible in terms of City facilities and services. An assessment of the adequacy of sites must include the collective capacity of sites community-wide as well as the suitability of individual sites for non-market rate housing. 3.0 Policies To assure the adequate provision of sites for housing, the City of Huntington Beach shall : Utilize the following general criteria for identifying and evaluating potential sites for low and moderate cost housing and sites for the elderly and/or handicapped. While compliance with the following criteria is preferable, no site shall be dismissed for failure to meet this criteria and shall be judged on its own merit. Sites should be: - located with convenient access to arterial highways and public transportation, schools, parks and recreational facilities, shopping areas, employment opportunities. - adequately served by public facilities, services, and utilities. - minimally impacted by seismic and flood hazards. Where such hazards cannot be avoided, adequate mitigation measures shall be incorporated into the design of all proposed development. - minimally impacted by noise and blighted conditions. - compatible with surrounding existing and planned land uses. - located outside areas of predominantly lower income concentrations. • Plan for residential land uses which accommodate anticipated growth from new employment opportunities. ° Locate residential uses in proximity to commercial and industrial areas and transportation routes to provide convenient access to employment centers. ° Promote the rezoning of vacant or recyclable parcels of land to higher densities where compatible with surrounding land uses and available services in order to lower the cost of housing. 3-18 3.4 Action: Work with the four school districts in Huntington Beach to provide residential development opportunities on surplus school sites. Anticipated Impact: Increase in the availability of sites for residential development. The City is committed to providing residential development on surplus school sites to enable it to meet its regional housing needs, and will work towards the creation of 776 additional dwelling units over the five year period. Responsible Agencies: Huntington Beach CDD and Department of Public Works. Funding Source: Department budgets. Schedule: Ongoing. 3.5 Action: Investigate General Plan land use and zoning designations to determine where increased densities can be utilized to provide for rental units for households of lower and moderate incomes. Anticipated Impact: Increase in the number of suitable sites for development of affordable housing. Responsible Agencies: Huntington Beach CDD. Funding Source: Department budget. Schedule: Ongoing. 3.6 Action: As part of the update of Division 9 of the City Municipal Code, identify appropriate zones for the location of transitional housing and emergency shelters for the homeless. Anticipated Impact: Provide adequate sites for the development or rehabilitation of housing for the homeless. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budget. Schedule: 1989-90. 3-20 3.7 Action: Continue to work with property owners in the Holly-Seacliff Master Plan area to address various land use issues, including the redesignation of non-residential lands to residential uses, subject to the procedures required under State law. Anticipated Impact: Increase in the available land inventory for residential construction, providing for an additional 1,000 - 1,700 residential dwellings. Responsible Agencies: Huntington Beach CDD. Funding Source: None necessary. Schedule: 1990. 3-21 GOAL 4.0 PRESERVING HOUSING AND NEIGHBORHOODS The State of California has made housing preservation and conservation a high statewide priority. While most of the City's housing stock is less than. 20 years old and in good condition, several neighborhoods contain significant levels of housing deterioration. These neighborhoods include the Washington, Oakview, Liberty, Commodore, South Shores, Oldtown and Townlot communities. Through its Community and Neighborhood Enhancement Program, the City offers low interest rehabilitation loans as an incentive for unit upgrading. 4.0 Policies In order to preserve housing and neighborhoods, the City of Huntington Beach shall : • Encourage the maintenance and repair of existing owner-occupied and rental housing to prevent deterioration of housing in the city. ° Encourage the rehabilitation of substandard and deteriorating housing where feasible. ° Where possible, take action to promote the removal and replacement of those substandard units which cannot be rehabilitated. ° Provide and maintain an adequate level of community facilities and municipal services in all community areas. ° Improve and upgrade community facilities and services where necessary. ° Encourage compatible design to minimize the impact of intensified reuse of residential land on existing residential development. ° Encourage preservation of the existing low density residential character in established single-family neighborhoods. 4.0 Programs 4. 1 Action: Review all changes in planned land uses to determine the cumulative impact on community facilities. Anticipated Impact: The assurance of adequate levels of community facilities and services to all areas of the city. Responsible Agencies: Huntington Beach CDD and Department of Public Works. Funding Source: Department budgets. Schedule: Ongoing. 3-22 4.2 Action: Continue to make available low interest rehabilitation loans for low-income owner-occupied housing. Anticipated Impact: Rehabilitation of deteriorated housing in the City and preservation of existing single-family housing stock. The program goal is 80 units per year with a maximum loan of $15,000 per unit. Responsible Agencies: Huntington Beach EDD. Funding Source: CDBG funds, Redevelopment Set-Aside. Schedule: Ongoing. 4.3 Action: Continue to enhance and preserve the multi-family housing stock within the Oakview neighborhood. Anticipated Impact: Rehabilitation of substandard four-plex units in the Oakview neighborhood, combined with rental assistance to assure affordability. The five year goal is for rehabilitation of 100 units. Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. Funding Source: HUD Rental Rehabilitation Program; Section 8 housing vouchers. Schedule: Ongoing. 4.4 Action: Within selected target areas, provide low interest rehabilitation loans to investor-owners of multi -family rental housing. Anticipated Impact: Rehabilitation of deteriorating multi-family housing and the preservation and enhancement of rental housing stock occupied by low and moderate income households. Goal of 16 units per year. Responsible Agencies: Huntington Beach EDD. Funding Source: CDBG Loan Pool , new CDBG funds, and Redevelopment Set-Aside. Schedule: Ongoing. 4.5 Action: Monitor housing conditions in neighborhoods considered marginal or at risk for deteriorated conditions in order to identify the need to expand existing rehabilitation programs. Anticipated Impact: The prevention of deterioration in marginal neighorhoods. 3-23 Responsible Agencies: Huntington Beach EDD and COD. Funding Source: EDD Administrative funds. Schedule: Ongoing. 4.6 Action: Continue to implement the comprehensive improvement plan for Commodore Circle. Anticipated Impact: Rehabilitation of 80 units and initiation of occupancy and maintenance standards. Responsible Agency: Huntington Beach EDD. Funding Source: CDBG funds; Rental Rehabilitation. Schedule: Rehabilitation and public improvements complete in 1989. Maintenance standards complete in 1990-1991 . 4.7 Action: Continue to enforce the City's code enforcement program, including property maintenance inspections. Anticipated Impact: Provide an enforcement tool to insure uniform maintenance consistent with the standard prevalent in the community. Responsible Agency: Huntington Beach COD. Funding Source: Department Budget. Schedule: Ongoing. 4.8 Action: Continue to actively enforce land use ordinances. Anticipated Impacts: Improved maintenance throughout the City. Responsible Agency: Huntington Beach COD. Funding Source: Department Budget. Schedule: Ongoing. 3-24 GOAL 5.0 PRESERVING AFFORDABILITY An important aspect of making housing available to all economic segments of the community is ensuring that assisted housing remains affordable to the income groups for which it was intended or which presently occupy it. In the rental housing market, the priority. of preserving affordability may conflict with that of preserving housing and neighborhoods, since rehabilitated units can command higher rents. This conflict necessitates a delicate balance. 5.0 Policies In order to preserve affordability, the City of Huntington Beach shall : ° Promote and, where possible, require the continued affordability of all units produced with participation by the City or its authorized agents including density bonuses and tax exempt financing. ° Encourage the continued affordability of those units utilizing public funds for rehabilitation. ° Regulate the conversion of existing apartment units to condominiums to minimize the adverse impact of conversions on the supply of low and moderate income rental housing, keeping in mind that condominiums may offer affordable opportunities for home ownership. ° Mitigate the displacement impacts occurring as a result of residential demolition through unit replacement or relocation of tenants. • Conserve affordable housing opportunities in the Coastal Zone through implementation of State requirements for replacement of low and moderate income housing, and for inclusion of affordable units where feasible in new residential construction. 5.0 Programs 5. 1 Action: Develop an affordable housing monitoring program, including restrictive covenants for rental units and financing mechanisms, to ensure the long term conservation of affordable units for which City incentives have been provided. Anticipated Impact: The retention of affordable units produced with public sector assistance/incentives. Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. Funding Source: Department budgets. Schedule: 1989. 5.2 Action: Develop a Multi -Family Unit Interest Rate Write-Down Program targeted towards publicly-subsidized housing projects with the potential for conversion to market rate. 3-25 Anticipated Impact: Conservation of existing stock of publicly-subsidized affordable housing. Responsible Agencies: Huntington Beach EDD/Redevelopment Agency Funding Source: Redevelopment Set-Aside. Schedule: 1989-1990. 5.3 Action: Continue to enforce the City's condominium conversion ordinance, and evaluate revising the ordinance to allow modified requirements if a portion of the units are set aside for Low and Moderate Income households. Anticipated Impact: Regulate the conversion of rental housing to ownership units in order to mitigate impacts on affordable rental housing. Responsible Agencies: Huntington Beach CDD and the .Office of the City Attorney. Funding Source: Department budgets. Schedule: Ongoing. 5.4 Action: Continue to pursue production of affordable housing, utilizing CDBG funds, Redevelopment Set-Aside funds and other available resources to meet the Redevelopment Agency's ongoing relocation/replacement of housing obligations. Anticipated Impact: Increase the supply of affordable housing. Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. Funding Source: CDBG funds; Redevelopment Agency funds and other resources as available. Schedule: Ongoing. 5.5 Action: Establish contact with local community development corporations and other non-profit housing providers to encourage and facilitate the development of affordable housing in Huntington Beach. Anticipated Impact: Increased housing opportunity for low and moderate income households. Responsible Agency: Huntington Beach EDD. Funding Source: None necessary. Schedule: Within two years. 3-26 5.6 Action: Meet and consult with mobile home owners who are potential displacees from mobilehome parks which intend to convert to other uses. Anticipated Impact: Assessment of impacts and preparation of strategies to address needs of .displacees. Responsible Agencies: Huntington Beach CDD and Redevelopment Agency. Funding Source: Department Budgets. Schedule: Ongoing. 5.7 Action: Provide financial assistance for relocation of persons displaced by redevelopment activities, including occupants of mobile homes. Anticipated Impact: Mitigation of adverse impacts on displaced residents. Responsible Agency: Huntington Beach EDD. Funding Source: Redevelopment Tax Increment. Schedule: Ongoing. 5.8 Action: Continue to monitor and assure replacement of low and moderate income housing which is demolished or converted in the Coastal Zone. Anticipated Impact: Conservation of affordable housing in the coastal zone through replacement requirements. Responsible Agency: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: Within one year. 3-27 GOAL 6.0 ENERGY CONSERVATION Reducing expenditures for energy can result in effective reductions in housing expense, since the costs of utilities are part of overall housing costs. The City does, therefore, want to encourage more efficient use of energy to promote private benefits (less expensive utility bills) and public benefits (reduced reliance on imported fuel ) . 6.0 Policies ° Encourage the use of energy conservation devices and passive design concepts which make use of the natural climate to increase energy efficiency and reduce housing costs. ° Encourage unit retrofitting through public education, including attic insulation and weatherstripping, concurrent with improvements to the dwelling. ° Investigate the feasibility of the use of renewable energy sources (solar and geothermal ) for hot water, space, and pool heating of larger housing developments. Encourage CC&Rs that protect solar access in new development. ° Continue to encourage alternative forms of transit such as buses, bicycles, and walking. 6.0 Programs 6. 1 Action: As part of the update of Division 9 of the City Municipal Code, incorporate development standards which specify required energy conservation features for residential development and incorporate standards for the provision of space for the collection of recyclable materials in multi-family developments. Anticipated Impact: Reduced energy consumption in residential projects. Responsible Agency: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989-1990. 6.2 Action: Review the City's zoning and subdivision regulations, EIR and site plan review guidelines, and municipal landscaping policies and revise as appropriate to address the issue of solar access. 3-28 Anticipated Impact: Sustained energy conservation in existing and new development through the maintenance of solar access. Responsible Agency: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989-1990. 6.3 Action: Continue to support and assist in publicizing energy conservation programs offered by the utilities. Anticipated Impact: Improved residential energy efficiency and related reductions in housing costs for participating households. Responsible Agency: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: Ongoing. 3-29 3.3 Housing Assistance Plan Housing Assistance Plans (HAPs) are required for jurisdictions in the Community Development Block Grant (CDBG) Program. The HAP details the programs and projects to be supported by the CDBG program as implemented through the Federal Department of Housing and Community Development (HUD) and approved by City Council . Housing assistance includes rehabilitation of substandard units and rental subsidies for lower income households, as well as several other housing programs. The HAP identifies the rental subsidy needs of lower income households categorized into three major groups: elderly (including handicapped) , small family (four or fewer persons) , and large family as shown in Table 6. TABLE 6 CITY OF HUNTINGTON BEACH RENTAL SUBSIDY NEEDS OF LOWER INCOME HOUSEHOLDS: 1989-1991 SMALL LARGE INCOME LEVEL ELDERLY FAMILY FAMILY TOTAL Very Low 919 3,548 416 4,883 Other Low 279 3,276 306 3,861 Expected to Reside 0 384 40 424 To Be Displaced 28 50 5 37 TOTAL 1,226 7,258 767 9,251 Source: City of Huntington Beach, Housing Assistance Plan, 1988-1991 A total of 9,251 lower income rental households are projected to need rental assistance during the 1988-1991 time period. Small family households are anticipated to comprise approximately 79 percent of those in need, with elderly households comprising 13 percent and large family households comprising 8 percent of the total household need. Given this inventory of households in need, the HAP has set forth the following rental assistance goals for the three year period: TABLE 7 CITY OF HUNTINGTON BEACH LOWER INCOME HOUSEHOLDS TO RECEIVE RENTAL SUBSIDIES: 1988-1991 SMALL LARGE ELDERLY FAMILY FAMILY TOTAL Households to be Assisted 142 625 67 834 Percent 17% 75% 8% 100% Source: City of Huntington Beach Housing Assistance Plan, 1988-1991 3-30 The City has set as a goal the achievement of 9 percent of its rental assistance need for lower income households; HUD has identified 2-9 percent as a reasonable goal . Rental assistance will be provided to each of the three needs groups in proportion to their identified needs. In terms of the improvement or rehabilitation of the physical housing stock, the HAP has identified the following goals: TABLE 8 CITY OF HUNTINGTON BEACH UNITS TO BE ASSISTED FOR LOWER INCOME HOUSEHOLDS: 1988-1991 Rehabilitation of New Home Type of Occupancy Substandard Units Construction Improvements Owner 112 _ 0 0 Renter 196 250 10 Source: City of .Huntington Beach Housing Assistance Plan, 1988-1991 The HAP identifies a series of federally-funded rental subsidy and rehabilitation programs which will be implemented to meet the identified housing assistance goals. These programs have been combined with other non-Federally funded programs to form the overall program strategy for the Housing Element, as presented in the program actions in Section 3.2, and further described in Section 3.6 - Description of Implementing Programs. 3-31 3.4 Regional Housing Needs Assessment State law requires jurisdictions to provide for their share of regional housing needs. The Southern California Association of Governments (SCAG) has. determined the 1989-1994 needs for the City of Huntington Beach, and has estimated the number of households which the City will be expected to accommodate during this period. Future housing needs reflect the number of new units needed in a jurisdiction based on households which are expected to reside within the jurisdiction (future demand) , plus an adequate supply of vacant housing to assure mobility and new units to replace losses. These needs were forecast by the 1988 Regional Housing Needs Assessment (RHNA) , which considered on a regional and local level : market demand for housing, employment opportunities, availability of suitable sites for public facilities, commuting patterns, type and tenure of housing need, and housing needs of farm workers. According to the model , housing to accommodate 6,228 households would need to be added to the City's June 30, 1989 total households by July 1994 to fulfill the City's share of regional housing needs. Based on the distribution of regional income, this total can be further divided among HUD's four income groups to identify the types of households to be provided for as follows: TABLE 9 CITY OF HUNTINGTON BEACH 1989-1994 HOUSEHOLD NEEDS BY INCOME GROUP Very Low (0-50% County median income 984 (15.8%) Low (50-80% County median income) 1 ,264 (20.3%) Moderate (80-120% County median income) 1,370 (22.0%) Upper (over 120% County median income) 2,610 (41 .9%) Total Households 6,228 Source: -SCAG Regional Housing Needs Assessment, June 1988, as revised. The intent of the future needs allocations by income group is to relieve lower income impaction - the undue concentration of very low and low income households in a jurisdiction. Localities must fully address their existing needs in order for impaction avoidance goals to be achieved in the future period. The Housing Element sets forth policies and programs to address the future housing needs identified by the RHNA. The City's Land Use Plan provides for a residential development capacity which is more than adequate to fulfill the City's share of regional housing needs. In addition, the Housing Element sets forth policies and programs to address the future housing needs of those income groups not provided for in the market, namely Very Low and Low, and to a lesser degree Moderate Income households. 3-32 3.5 Redevelopment Set-Aside Fund Legislative Background State Redevelopment Law provides the mechanism whereby cities and counties within the state can, through adoption of an ordinance, establish a redevelopment agency. The Agency's primary purpose is to provide the legal and financial mechanism necessary to address blighting conditions in the community through the formation of a redevelopment project area(s) . Of the various means permitted under State Law for financing redevelopment implementation, the most useful of these provisions is tax increment financing. This technique allows the assessed property valuation within the redevelopment project area to be frozen at its current assessed level when the redevelopment plan is adopted. As the property in the project area is improved or resold, the tax increment revenue generated from valuation increases above the frozen value is redistributed to the redevelopment agency to finance Redevelopment Project costs. In many early redevelopment projects, a major focus was upon demolition of blighted residential buildings and development of new non-residential uses or upper income residential projects. While these type of projects worked to eliminate blighting conditions, they did little or nothing to aid the mostly low and moderate income residents of the housing that was demolished, in addition to having a negative impact on the community's supply of affordable housing. To address the problems that arose with regard to the effect of redeveloment on low and moderate income housing, the state legislature enacted a series of changes to Community Redevelopment Law which require redevelopment agencies to undertake activities which will assist in the production of low and moderate income housing. The legislative requirements regarding low and moderate income housing generally fall into three basic categories: 1) expenditure of 20% of the tax increment revenue to increase and improve the supply of low and moderate income housing in a community; 2) requirements that redevelopment agencies replace low and moderate income housing which is destroyed as a result of a redevelopment project; and 3) requirements that a portion of all housing constructed in a redevelopment project area be affordable to low and moderate income persons and families. The requirement for redevelopment agencies to set aside 20% of a project's tax increment for low and moderate income housing can provide a significant source of funding for implementation of a community's housing programs. Huntington Beach Seven years ago, the Huntington Beach Redevelopment Agency began its efforts to reverse the economic decline of several of the City's most blighted neighborhoods. This campaign was first introduced in 1982 as the "Community and Neighborhood Enhancement Program," a concept which set in motion activities and plans to upgrade housing, stimulate investment, and improve circulation patterns in each of the four redevelopment project areas established that year: Main-Pier, Oakview, Talbert Beach, and 3-33 Yorktown-Lake. The progress of these project areas spurred the Redevelopment Agency to include its primary commercial center, Huntington Center, in its redevelopment plans in 1984. Through its redevelopment efforts, the City Council/Agency is responsible for 344 new units of affordable housing, including three senior housing projects. Significant housing rehabilitation improvements have also been achieved within the Community and Neighborhood Enhancement target areas. While the Redevelopment Agency has made significant progress in attaining the goal of increasing the City's affordable housing stock, none of the 20% set-aside fund has yet been expended, primarily due to its low balance. However, with completion of a recent tax allocation bond sale, nearly $3.7 million dollars is currently allocated to the 20% set-aside fund. In 1988 AB 4566 mandated that redevelopment agencies with "excess surplus" (a) monies in their housing set aside funds must either spend these funds within five years or else transfer them to another local housing authority for expenditure. State law sets forth a variety of options for localities to expend their housing funds, including the following: - Land Disposition and Write-Downs - Site Improvements - Loans - Issuance of Bonds - Land and Building Acquisition by Agencies - Direct Housing Construction - Housing Rehabilitation Programs - Rent Subsidies - Predevelopment Funds - Administrative Costs for Non-Profit Housing Corporations A Housing Committee comprised of three City Council/Redevelopment Agency members and four citizen representatives was formed to develop the fiscal year 1989-90 20% Housing Set-Aside budget and implementation plan. The Plan identifies expenditure of redevelopment set-aside funds on the following programs: 1 . Rehabilitation projects benefiting low and moderate income households where federal CDBG funds are found to be too restrictive. 2. Multi -Unit interest rate write-downs for existing federally assisted (Section 236) housing projects with the potential for conversion to market rate with expiration of the original loan. (The City also intends to explore the feasibility of having non-profit sponsors take over expiring projects with financing provided by tax-exempt multi -family revenue bonds. ) (a) "Excess surplus" is defined as any unexpended and unencumbered balance in an agency's Low and Moderate Income Housing Fund that exceeds the greater of five hundred thousand dollars or the aggregate amount deposited into the Fund pursuant to Community Redevelopment Law (Health and Safety Code Sections 33334.2 and 33334.6) during the agencies preceding five fiscal years. 3-34 3. First time buyer deferred payment loans for down payment assistance to qualifying low and moderate income households. 4. Private market leveraging of funds (development cost write-downs) to increase the number of affordable units provided in publicly assisted housing developments. 5. Mobile home assistance to low income mobile home owners to assist with a variety of eligible programs, perhaps including emergency repair grants. Based on this first year budget for expenditure of the City's 20% set-aside fund, these programs have been incorporated into the Housing Element. In addition, based on direction provided from City redevelopment and housing staff, several additional Housing Element programs have identified the redevelopment set-aside fund as a potential source of program funding over the five year period of the Housing Element. 3-35 r 3.6 Description of Implementing Programs The Housing Element describes the housing needs of the City's current and projected population, as well as the specific needs resulting from the deterioration of older units, lack of affordable housing for lower income groups, and special needs for certain segments of the City's population. The goals and policies contained in the Housing Element address the City's identified housing needs. These goals and policies are implemented through a series of housing programs that are funded and administered through a variety of local , regional , State and Federal agencies. Section 3.2 of the Housing Element sets forth the program actions the City intends to implement over the five year period of the Element. The following section provides a more detailed description of these programs and references the program action(s) related to each housing program. In addition, in order to further expand affordable housing opportunities in Huntington Beach, several additional housing programs are described which are under study but have not yet been committed to by the City. 3.6.1 Current Housing Programs and Recent Actions The City takes an active role in providing housing assistance through its Housing and Community Development programs. In addition, the City has taken a number of actions in the past to further the production of housing and to improve the City's housing stock. The City's current housing programs and recent actions related to housing are described in the following section. 3.6.1.1 New Construction Tax-Exempt Mortgage Program The City maintains an on-going program to provide tax-exempt mortgage financing for construction and permanent loans for multi -family housing. The City sells bonds to provide the financing for the program. The income from the bonds is tax-exempt which increases the effective net yield to the bond holder. Federal law requires that 20 percent of the total units in a bond-financed project be reserved for lower income households. Recent State legislation requires that one half of the reserved units be set aside for Very Low Income households. (Program Action 2.1, 2.9) Density Bonus Incentives Pursuant to State law, if a developer allocates at least 20 percent of the units in a housing project to lower income households, 10 percent for very low income households, or at least 50 percent for "qualifying residents" (e.g. senior citizens) , the City must either a) grant a density bonus of 3-36 25 percent, along with one additional regulatory concession to ensure that the housing development will be produced at a reduced cost, or b) provide other incentives of equivalent financial value based upon the land cost per dwelling unit. The density bonus mechanism has proved an effective tool for encouraging affordable housing, in the City with 136 affordable units in 13 projects completed under this program. In order to ensure the continued affordability of units provided under the program for a minimum of 30 years, the City will . require that restrictive covenants be filed with the deed on all new density bonus projects and will bi -annually monitor the units. As an incentive to increase the number of affordable units provided, the City may also offer to write down the development costs in exchange for the provision of additional affordable units. The number of additional units set aside is a proportionate percentage of the City's contribution to the overall construction costs for the project. Approximately $780,000 in redevelopment set-aside funds have been allocated for fiscal year 1989-90 for "private market leveraging. " (Program Action 2.2) Land Assemblage and Write-Down The City can utilize both CDBG and redevelopment set-aside monies to write down the cost of land for low and moderate income housing. The intent of this program is to reduce land costs to the point that it becomes economically feasible for a private (usually non-profit) developer to build units which are affordable to low and moderate income households. As part of the land write-down program, the City may also assist in acquiring and assembling property and in subsidizing on- and off-site improvement costs. (Program Actions 1 .2, 2.2). Talbert Beach Redevelopment Area: The City's Redevelopment Agency has assisted in the consolidation of previously inaccessible parcels in this 25-acre project area to facilitate residential and industrial development. The following residential projects have been constructed in this project area to date: 1 . Emerald Cove - a 164 unit senior apartment project with 82 below market units. This project received a National Certificate of Merit from HUD for public/private partnerships. 2. Windward Cove - a 96-unit senior condominium complex with initial purchase prices well below market rates. 3. Capewood - a 54-unit condominium complex for families. The developer of these units participated in the single-family Mortgage Revenue Bond Program to provide below-market-rate homes to first-time homebuyers. The Redevelopment Agency is currently working towards consolidating the two remaining parcels in the Talbert Beach project area to provide for the development of up to 200 additional residential units. 3-37 Affordable Housing Monitoring The City has hired a private consulting firm to develop an affordable housing monitoring program for Huntington Beach. The program will involve the filing of restrictive covenants on affordable units for which City incentives have been provided. In addition, bi-annual monitoring of the units will be conducted to verify the income of the tenant, along with the continued affordability of the unit. This monitoring program will help to ensure the long-term conservation of affordable units in Huntington Beach. (Program Action 5. 1) Shared Equity Program Equity sharing allows lower income households to purchase a home by sharing the costs of home ownership with a sponsor, such as a local housing authority. The sponsor and the buyer would together provide the downpayment and purchase costs to buy a house. When the house is sold, the equity earned through appreciation is split between the occupant and the sponsor according to an agreement made prior to purchase. The City is in the process of developing a shared equity program in which a loan pool will be established using redevelopment set-aside monies for downpayment assistance to qualifying low and moderate income first-time homebuyers. A Deed of Trust and affordable housing covenant will be secured against the property to ensure the use to be owner-occupied and the loan to be paid back with a proportionate share of the equity at the time the property is sold or the title transferred. The covenant will designate the use for the longest feasible time, but not for less than ten years. One-million dollars of set-aside funding has been allocated to this program for fiscal year 1989-90. (Program Action 2.13) 3.6.1.2 Assistance to Existing Units Section 8 Rental Assistance Payments/Housing Vouchers The Section 8 rental assistance program extends rental subsidies to low income families and elderly who spend more than 30 percent of their income on rent. The subsidy represents the difference between the excess of 30 percent of the monthly income and the actual rent. The voucher program is similar to the Section 8 Program, although participants receive housing "vouchers" rather than certificates. Vouchers permit tenants to locate their own housing. Unlike in the certificate program, participants are permitted to rent units beyond the federally determined fair market rent in an area provided the tenant pays the extra rent increment. The Reagan Administration proposed converting the certificate program to a voucher system, which will likely occur through time. The City of Huntington Beach contracts with the Orange County Housing Authority to administer the Section 8 Certificate/Voucher Program. 3-38 According to the Housing Authority, Huntington Beach has been one of the more aggressive communities in the region in pursuing needed rental subsidies. As of March 1, 1989, Huntington Beach had secured a total allocation of 577 housing vouchers and certificates. Consistent with the City's Housing Assistance Plan, the City's five year assistance goal is for an additional 238 rent subsidies. However, it is impossible to know how many additional housing vouchers the City will actually receive from HUD. (Program Action 2.5) Community and Neighborhood Enhancement The Community and Neighborhood Enhancement Program is a comprehensive program designed to promote and assist in the upgrading of .declining residential neighborhoods within the City. This program is designed to meet individual needs, to be responsive to the social and economic circumstance which exists within each neighborhood, to have strong resident and property owner support, and to be limited to a few priority areas so that the full benefit of a concentrated effort might be realized by generating substantial physical and visual improvement'within these areas. The areas within the Neighborhood Enhancement Program include the Oakview, Washington Street, Commodore Circle, South Shores, Liberty, Oldtown and Townlot Neighborhoods. Rehabilitation loans are provided through the City's Housing Rehabilitation Loan Program and Rental Rehabilitation Program, described in the following sections. There is a continuing effort to provide housing rehabilitation assistance, combined with needed public improvements, to promote the renovation of existing units within these neighborhoods with an estimated $650,000 to be budgeted over the next fiscal year for this program. (Program Actions 4.2, 4.3, 4.4, 4.6) Housing Rehabilitation Loan Program This program utilizes CDBG funding to provide low interest loans to owners of residential properties. Deferred Payment rehabilitation loans of up to $10,000 are available to Very Low Income owner-occupied households. These loans are due and payable with 6% one-time only interest fee at the time of sale or transfer of ownership. The City also offers the following types of below market interest rate loans for residential rehabilitation: a)3% loans available to lower income households; b)6% loans available to median income households within identified Community and Neighborhood Enhancement target areas; and c)8% loans available to above-median income households within identified Community and Neighborhood Enhancement target areas for code compliance repairs only. The maximum loan amount for a below market interest rate loan is $15,000. The City of Huntington Beach has effectively marketed its Housing Rehabilitation Loan Program, with approximately 80 loans processed each year. This success is due in large part to the City's aggressive pursuit of housing rehabilitation as part of the Community and Neighborhood Enhancement Program. Rehabilitation loans are also offered to income-qualified property owners as part of the City's code enforcement activities. (Program Actions 4.2, 4.4, 4.6) 3-39 Rental Rehabilitation Program The Rental Rehab Program is a separately funded Federal program established to encourage the rehabilitation of substandard apartment buildings in targeted neighborhoods. Through this program, the City offers up to a 50% deferred loan to pay towards the total cost of a rehabilitation project, with the balance financed through a 6% interest rate loan. The maximum loan amount is $40,000. To qualify for a Rental Rehab subsidy, more than 70% of the building's tenants must be of low or moderate income. In order to address potential displacement impacts resulting from increased rents in rehabilitated units, the City has coupled the Rental Rehab Program with its rental assistance program. Existing Low Income tenants in rehabilitated buildings are offered Rent Vouchers to ensure their housing costs will not exceed 30% of their gross monthly income. (Program Action 4.3) Handicapped Grant Program Handicapped households have special needs which include access ramps, wider doorways, assist bars in the bathrooms, lower cabinets, and special access sources to second stories. The City is working with the Dayle MacIntosh Center for the disabled of Orange County to encourage owners of rental units to make a share of such units available for accessibility modifications. The City utilizes CDBG funding to offer $1,500 handicapped modification grants to multi-unit property owners to encourage modification to existing units to meet these special needs of the handicapped. The Housing Element recommends the City undertake more intensive marketing of this program to widen participation. (Program Action 1.5) Home Weatherization Improvements As residential energy costs continue to rise, increasing utility costs reduce the affordability of housing, thus aggravating the City's current shortage of affordable units. Both the Southern California Gas Company and Southern California Edison offer a variety of energy conservation services designed to help low-income, senior citizens, permanently handicapped, and non-English speaking customers control their energy use. Homeowners or renters may qualify for the following types of weatherization improvements free of charge: attic insulation, weather stripping, caulking, water heater insulation blankets, water-saving showerheads, heating/cooling duct insulation, other types of limited home repairs which increase energy efficiency. (Program Action 6.3) Code Enforcement One of the primary objectives of the City's code enforcement program is to bring substandard housing units into compliance with City codes. The code enforcement program is operated through the City's Community Development Department whose field inspectors respond to complaints related to substandard housing, property maintenance, overgrown vegetation, trash and 3-40 debris, inoperable vehicles, illegal conversions, improper occupancy, and other nuisance and zoning complaints. Upon inspection, if violations of code exist, a violation notice is issued to the responsible party. A reasonable period of time is given to bring the violation into compliance. Failure to comply will result in code compliance proceedings. Citations may be issued by code enforcement officers in cases where health and safety may be threatened. Due to citizen complaints and community concerns regarding deterioration within the City, the code enforcement program has been expanded to provide three full time field inspectors and a fourth part-time inspector. This staffing level enables the Community Development Department to respond to the average monthly caseload of 125 code complaints within a reasonable response period. (Program Actions 4.5, 4.8, 4.9) Condominium Conversion Ordinance The City of Huntington Beach has adopted a stringent Condo Conversion Ordinance that requires converted units to conform to the requirements of the City's Planned Unit Development (PUD) Ordinance. Since most existing multi -family housing units have been developed to standards that generally require substantially less open space and parking than that required under the PUD Ordinance, these requirements serve as a significant disincentive for condominium conversions. The identified action for this program indicates review and potential revision of the City's current Condominium Conversion Ordinance to allow modified requirements if a portion of the units are set aside for Low and Moderate Income households. (Program Action 5.3) Interest Rate Write-Downs for Existing Affordable Housing A community's existing affordable housing stock is a valuable resource which should be conserved and, if necessary, improved to meet habitability standards. The City of Huntington Beach has several federally assisted (Section 236) housing projects with the potential for conversion to market rate with expiration of the original loan. In order to address this potential loss in affordable units, the City is in the process of developing a Multi -Family Unit Interest Rate Write-Down Program. This program will offer a lump sum write-down of an existing interest bearing note to reduce debt service on existing multi -family apartment complexes. In return, the property owner will execute with the City a recorded covenant requiring the continuance of affordable rental rates to low and moderate income households or a minimum of fifteen years. (Program Action 5.2) A second approach which may be pursued to conserve existing affordable units would be for a non-profit sponsor to purchase Section 236 or other subsidized projects at the current market value with financing provided by tax-exempt multi-family revenue bonds issued by the City. The rating of these tax-exempt securities could be enhanced by pledge of the redevelopment housing set-aside funds, thus reducing the net interest cost of the mortgage loan. 3-41 r 3.6. 1.3 Housing Services Home Sharing Many seniors who would prefer to live independently resort to institutionalized living arrangements because of security problems, loneliness, or an inability to live entirely independently. A City-funded shared housing program is currently offered at Roger's Senior Center in Huntington Beach. Roommate matches are made between seniors based on telephone requests. The Program's Administrator indicates requests for home sharing are sporadic--six to eight matches made for months in a row followed by months without any requests. The program action for home sharing indicates more active marketing should be undertaken to better advertise the program's availability to seniors in the community. In addition, the program action calls for investigating the development of a pilot project to match residents of varying age categories which links in with Project Self-Sufficiency. (Program Action 2.12) Project Self-Sufficiency In attempts to curtail additional persons and families from becoming homeless, the City's Economic Development Department runs "project Self-Sufficiency" (PSS) . As its name suggests, the program aims to make persons independent of government subsidies and become self-sufficient. To meet this goal , PSS provides housing assistance in the form of Section 8 housing vouchers to low-income, single parents who are either currently homeless or at risk of becoming homeless. The program also matches the single parent with the appropriate agencies in the community to receive needed assistance such as food, clothing, childcare and job training. In order to qualify for the voucher program, persons must reside or work in Huntington Beach or come from a homeless shelter sponsored by the Huntington Beach Resource Board. When PSS is unable to provide services to those in need, the program refers these persons to other social services in the surrounding area. The program is currently funded primarily through CDBG grants and private sector donations. (Program Action 2.10) Other Homeless Services The City of Huntington Beach provides funding ($43,000 in CDBG monies in 1988) to a variety of social service agencies which provide services to the area's homeless population; 15 percent of the City's CDBG budget is allocated towards social service providers. Services provided by these organizations include lodging, food, clothing, bus coupons, housing referrals and counseling. In addition, a new shelter targeted at assisting the City's numerous adolescent homeless is set to open later this year. The City has indicated it may provide supplementary operational funds to this shelter, the Huntington Beach Youth Shelter. As part of the current update to the City's Zoning Ordinance, appropriate zones will be identified for the development or rehabilitation of transitional housing and emergency shelters for the homeless. The City will provide public notification in the newspaper, as well as directly notify local service providers of the Zoning Ordinance update to solicit community input. (Program Actions 2.11, 3.6) 3-42 3.6.1.4 Removal of Governmental Constraints Senior Residential Suffix Zoning The Senior Citizen Residential suffix was adopted to establish standards for residential developments designed to house senior citizens. By adopting these standards, the City recognizes that housing needs for senior citizens vary in some respects from the needs of non-seniors. When the suffix is applied to a property, certain development standards will be reduced; specifically, those related to floor area, site coverage, building separation, building bulk, parking and open space. These reduced standards will enable senior citizen projects to be built and sold/rented at a more affordable cost. (Program Action 1 .2) Second Unit Ordinance The City of Huntington Beach has amended its ordinance code by adding a new subsection pertaining to second units in single-family residences. A second unit may be added to an existing single family structure subject to standards within the ordinance. This ordinance can provide a cost effective means of serving additional development through the use of existing infrastructure and should provide relatively affordable housing for low and moderate income small households within existing under- utilized structures. (2.0 Policies) Mobilehome Overlay Zone and Conversion Ordinance The Mobilehome Overlay Zone and Conversion Ordinance contains requirements for applying the mobilehome park overlay zone and provides minimum standards for an acceptable mobilehome relocation assistance plan if a mobilehome park is converted to other uses. Many senior citizens and low income households presently reside in the City's mobilehome parks. The goal of the mobilehome relocation assistance plan is to provide alternative housing opportunities for mobilehome residents who may be displaced as a result of the conversion of mobilehome parks to other land uses. Any displacement of mobilehome units (or any low or moderate income housing) resulting from City-sponsored redevelopment activities will be replaced in equal number within four years and will be available at affordable rates. (2.0 Policies) Fast Track Processing The City is considering developing an expedited processing procedure for projects with an affordable component which require approval by the City's Planning Commission or Council . This program would be helpful in reducing holding costs while processing the approvals necessary for zone changes, density bonuses, plan check and building permit procedures, thereby resulting in lower construction costs and more affordable housing. The specific procedures for fast-track processing of affordable housing projects could be developed as part of the update to Division 9 of the City Municipal Code. (Program Action 2.8) 3-43 3.6.1.5 Fair Housing Orange County Fair Housing Council Huntington Beach is a member of the Orange County Fair Housing Council and will contribute $32,000 in Community Development Block Grant funds for its. support during fiscal year 1989-90. The primary programs of the Fair Housing Council include: 1) housing discrimination response; 2) landlord- tenant counseling; 3) low income housing advocacy; 4) publication of the semi-annual Forum newsletter; and 5) community awareness and education. (Program Action 1. 1) 3.6.2 Housing Programs Under Study In order to increase affordable housing opportunities in Huntington Beach, the following additional programs are currently under study by the City. Reverse Mortgage Program The most substantial asset of most elderly homeowners is their home, which in Huntington Beach has increased significantly in value with inflation. And while owning a home may provide a rich asset base, with the onslaught of retirement and a fixed income, many elderly homeowners quickly become income poor. Home maintenance repairs multiply as the home ages, and with the rising costs in home utilities, insurance, and taxes, maintenance often gets deferred altogether, creating an unsafe and often depressing living environment for the senior. An alternative option for the elderly homeowner is to draw needed income from the accumulated equity in their homes through a reverse mortgage. A reverse mortgage is a deferred payment loan or a series of such loans for which a home is pledged as security. Qualification for the loan is based primarily on property value rather than on income, allowing the elderly homeowner on a fixed income to receive a loan for which he or she would otherwise not qualify. Most reverse mortgage programs permit homeowners to borrow up to 80 percent of the assessed value of their property, to receive needed principal of up to 25 percent of the loan, and then to receive monthly annuity payments for the life of the loan. The San Francisco Development Fund offers free training to communities interested in organizing a reverse mortgage program for seniors. Rather than making the loans themselves, the City's role could be to facilitate the initiation of reverse mortgage loans through the following steps. First, the City would need to provide educational and counseling services to seniors interested in pursuing a reverse mortgage. Secondly, the City would need to work with local lending institutions which currently provide these loans to gain a thorough understanding of the application process. The City could then work with the seniors to complete the loan applications and assist in providing any other necessary information to the bank. Local contacts which may be helpful to the City in setting up a reverse mortgage program include the City of Orange, which has been operating their mortgage program for over a year, and Security Pacific National Bank in Downey, which has begun offering reverse mortgage loans. 3-44 Non-Profit Construction A non-profit housing corporation works to develop, conserve and promote affordable housing, either owner or renter-occupied. Often the non-profit is involved with what is called "assisted housing" where some type of government assistance (such as Section 8) is provided to the . individual household to keep rents affordable. Housing corporations can work with assisted housing in several ways: 1 . The non-profit may assemble a development package and sell it to a profit-motivated developer. The package usually consists of a site, project design, the necessary permits, and, in some cases, preliminary financing commitments. The advantage of this method is that the non-profit can get low- and moderate-income housing built while ending its involvement early in the process and going on to other projects. The disadvantage is that the non-profit may lose control over the development at the time of sale. However, the non-profit could negotiate to retain some control over the project in the recorded contractual agreement between it and the developer. 2. The non-profit may participate in a joint venture with a profit-motivated developer. Though it usually performs the same functions as in the first method, the non-profit can retain more control over the development and gain hands-on development experience while benefitting from the financial resources of the for-profit developer. In this option, however, the non-profit has a longer involvement and will have to negotiate the rights and responsibilities of the two partners. 3. In the third approach, the non-profit is the developer. In this case, the group must employ staff with necessary expertise or rely heavily on consultants. In return, the group has total control over the development. This option requires more risk, money, time, effort, and capability on the part of the non-profit. A non-profit housing corporation can help meet the goals for additional housing by implementing or assisting with the implementation of programs described in the Housing Element. The City should coordinate with local non-profit groups or encourage the formation of a housing development corporation by interested parties in the community to facilitate the development and improvement of low cost housing in Huntington Beach. 3-45 � r Neighborhood Housing Services The Neighborhood Housing Services (NHS) program operates as a private non-profit group run by local residents, business leaders, and local government. The purpose of the NHS is to assist in rehabilitation and preservation of housing units in neighborhoods where the housing stock is deteriorating. Services provided by the NHS can include rehabilitation counseling, assisting homeowners in working with contractors, advise about financing, revolving loans for rehabilitation, and involving the neighborhood in the community. Limited funding for the NHS revolving loan fund is available through the Neighborhood Reinvestment Corporation (NRC) , a non-profit public corporation authorized by Congress to encourage revitalization of residential neighborhoods. NRC provides $50,000 grants for the revolving loan fund and makes available technical assistance to develop and maintain the NHS. Limited Equity Cooperatives Limited equity cooperatives provide a means of homeownership to people who could not otherwise afford to buy housing. A housing cooperative is owned by a corporation made up of the cooperative's residents. Members do not own the individual units in which they live, but rather they own a share in the corporation and thereby have the exclusive right to occupy a specific unit. In a limited equity cooperative, the amount for which a share may be sold is limited to ensure the long term affordability of the unit. Affordability is protected because the corporate entity holds a blanket mortgage where vacated units are not refinanced and resold, thereby protecting them from price inflation. The City can maintain information and limited equity cooperatives as reference for groups trying to organize a co-op. Mobile Home Park Assistance Program This program, offered by the State Department of Housing and Community Development, provides financial and technical assistance to mobilehome park residents who wish to purchase their mobilehome parks and convert the parks to resident ownership. Loans are made to low-income mobilehome park residents or to organizations formed by park residents to own and/or operate their mobilehome parks, thereby allowing residents to control their housing costs. Loans are limited to 50 percent of the purchase price plus the conversion costs of the mobilehome park, and are awarded by the State on a competitive basis. Applications must be made by mobilehome park residents who must form a resident organization, and a local public entity as co-applicants. The City could help to facilitate the use of this program by advertising its availability to mobilehome park residents, and by serving as co-applicant for resident organizations applying to the State for funding. 3-46 r• � Mortgage Credit Certificate Program The City of Huntington Beach is interested in exploring the feasibility of a mortgage credit certificate program. Under this program, first time homebuyers would receive a credit on their annual home mortgage interest payments. Depending on the amount of available subsidy and the income of the homeowner, credits could range between 20-50 percent of the annual interest payment. As the ratio of interest to principal paid on the mortgage decreases through time, the amount of interest subsidy would also decrease. A Mortgage Credit Certificate Program could be financed through the City's Redevelopment Set Aside fund, and would be limited to use by low and moderate income households. (Program Action 2.13) 3-47 Y � APPENDIX A STATE HOUSING ELEMENT REQUIREMENTS I STATE HOUSING ELEMENT REQUIREMENTS REQUIRED HOUSING ELEMENT COMPONENT REFERENCE A. Housing Needs Assessment 1. Analysis of population trends in Huntington Data Report, Beach in relation to regional trends Section 2. 1 2. Analysis of employment trends in Huntington Data Report Beach in relation to regional trends Chapter 5.0 3. Projection and quantification of Huntington Housing Element Beach's existing and projected Section 3.4 housing needs for all income groups 4. Analysis and documentation of Huntington Beach's housing characteristics including the following: a. level of housing cost compared to Data Report, ability to pay; Section 3.5 b. overcrowding; Data Report, Section 3.3 c. housing stock condition. Data Report, Section 4.3 5. An inventory of land suitable Housing Element for residential development including Section 2.3 vacant sites and sites having redevelopment potential and an analysis of the relationship of zoning, public facilities and services to these sites 6. Analysis of existing and potential Housing Element governmental constraints upon the Section 2.2 maintenance, improvement, or develop- ment of housing for all income levels 7. Analysis of existing and potential Housing Element nongovernmental and market Section 2.2 constraints upon maintenance, improve- ment, or development of housing for all income levels A-1 STATE HOUSING ELEMENT REQUIREMENTS (continued) REQUIRED HOUSING ELEMENT COMPONENT REFERENCE 8. Analysis of special housing needs: Housing Element handicapped, elderly, large families, Section 2. 1 and female-headed households 9. Analysis concerning the needs of Housing Element homeless individuals and families in Section 2. 1 Huntington Beach 10. Analysis of opportunities for energy Data Report, conservation with respect to Section 7.2 residential development B. Goals and Policies 1 . Identification of Huntington 'Beach's Housing Element community goals relative to maintenance, Section 3.2 improvement, and development of housing 2. Quantified objectives and policies relative Housing Element to the maintenance, improvement, and Section 3.2 development of housing in Huntington Beach C. Implementation Program An implementation program should do the following: 1 . Identify adequate sites which will be Housing Element made available through appropriate action Section 3 .2 with required public services and facilities for a variety of housing types for all income levels 2. Program to assist in the development of Housing Element adequate housing to meet the needs of Section 3.2 low- and moderate-income households 3 . Identify and, when appropriate and Housing Element possible, remove governmental constraints Section 3.2 to the maintenance, improvement, and development of housing in Huntington Beach 4. Conserve and improve the condition of Housing Element the existing affordable housing stock Section 3.2 in Huntington Beach 5. Promote housing opportunities for all Housing Element persons regardless of race, religion, sex, Section 3.2 marital status, ancestry, national origin or color A-2 CITY OF HUNTINGTON BEACH HOUSING ELEMENT TECHNICAL REPORT TABLE OF CONTENTS Page 1 .0 INTRODUCTION 1 .1 Purpose of Report B1-1 1 .2 Sources of Information B1-1 1 .3 Huntington Beach Setting B1-2 2.0 POPULATION CHARACTERISTICS AND TRENDS 2. 1 Population Growth B2-1 2.2 Age Composition B2-3 2.3 Race and Ethnicity B2-6 3.0 HOUSEHOLD CHARACTERISTICS 3.1 Household Composition B 3-1 3.2 Household Size B 3-2 3.3 Overcrowding B 3-2 3.4 Household Income B 3-3 3.5 Housing Affordability B 3-7 3.6 Special Needs Groups B3-9 4.0 HOUSING UNIT CHARACTERISTICS 4.1 Housing Growth B4-1 4.2 Housing Type and Tenure B 4-2 4.3 Age/Condition of Housing Stock B 4-3 4.4 Housing Costs B 4-13 4.5 Share of Region's Housing Needs B 4-29 4.6 Housing in the Coastal Zone B 4-30 5.0 EMPLOYMENT CHARACTERISTICS B 5-1 6.0 HOUSING CONSTRAINTS 6. 1 Market Constraints B 6-1 6.2 Governmental Constraints B 6-3 6.3 Environmental and Infrastructure Constraints B 6-9 7.0 HOUSING OPPORTUNITIES 7. 1 Availability of Sites for Housing B 7-1 7.2 Energy Conservation B 7-12 LIST OF TABLES Table Page 1 Regional Population Growth: 1970-1988 B2-1 2 Population Trends: Huntington Beach and B2-2 Surrounding Areas, 1980-1988 3 Projected Population Growth: 1988-2010 B2-3 4 Age Characteristics of Population: 1980 & 1988 B2-5 5 Ethnic Composition: 1980 & 1988 B2-6 6 Household Type: 1980 & 1988 B3-1 7 Household Size: 1980-1993 B3-2 8 Median Household and Family Income: Huntington B3-3 Beach and Surrounding Areas, 1979 9 Income Groups: 1979 & 1988 B3-5 10 1988 Income Distribution by Subarea B3-8 11 Lower Income Households Paying Greater Than 30% B3-9 of Income for Shelter 12 Summary of Special Needs Groups: 1988 B3-9 13 Social Service Agencies Which Provide Services B3-14 to the Homeless in the Huntington Beach Area 14 Housing Trends: Huntington Beach and Surrounding B4-1 Area, 1980-1988 15 Housing Trends: 1980-1988 B4-2 16 Age of Housing Stock: 1988 B 4-5 17 Housing Stock Conditions: 1988-1991 B 4-6 18 Housing Values: Huntington Beach and Surrounding B 4-13 Areas, 1980 19 Single-Family Residential Sales: 1988 B 4-14 20 Single-Family Residential Sales: Downtown/Old Town B 4-15 r; LIST OF TABLES (Continued) Table Pa e 21 Single-Family Residential Sales: Harbor/Bolsa Chica B4-17 22 Single-Family Residential Sales: North Central B 4-18 23 Single-Family Residential Sales: Southeast B 4-19 24 Condominium Sales Activity: 1988 B4-20 25 Condomi-nium Sales: Downtown/Old Town B 4-21 26 Condominium Sales: Harbor/Bolsa Chica B 4-23 27 Condominium Sales: North Central B4-24 28 Condominium Sales: Southeast B4-25 29 Monthly Rents: Huntington Beach and Surrounding B 4-26 Areas, 1980 30 Monthly Rental Rates: 1988 B4-27 31 Monthly Rental Rates by Subarea: 1988 B4-29 32 1989-1994 Household Needs by Income Group B 4-29 33 Affordable Housing Projects within Three Miles of B 4-31 Coastal Zone 34 Employment Trends: 1980 & 1984 B 5-2 35 Residential Development Capacity of Land Use Plan B 6-4 36 Summary of Development Fees for Typical Low Density B 6-6 Residential Project 37 Summary of Development Fees for Typical High Density B 6-7 Residential Project 38 Development Processing Time in Huntington Beach and B 6-8 Surrounding Communities 39 Vacant Lands Suitable for Residential Development: B7-4 1988 40 Residential Recycling Activity B7-5 41 Potential Residential Development Summary B7-11 LIST OF FIGURES Figure Pa e 1 Regional Location Map B1-3 2 Population Growth: 1980 - 1988 B2-4 3 Race and Ethnicity: 1988 B2-8 4 Median Household Income: 1988 B 3-6 5 Housing Tenure: 1988 B 4-4 6 Community and Neighborhood Enhancement Areas B 4-7 7 Median Single-Family Residential Sales Prices: 1988 B 4-16 8 Median Condominium Sales Prices: 1988 B 4-22 9 Median Rental Rates: 1988 B 4-28 10 Previously Constrained Lands Suitable for Residential Development B 7-2 11 Bolsa Chica Residential Development Plan B7-9 APPENDIX B City of Huntington Beach 1989 Housing Element Update Technical Data Report r " w m I t :i 1.0 INTRODUCTION 1.1 Purpose of Report Huntington Beach is a diverse community with households of varied socio-economic, racial and cultural backgrounds. Providing adequate and affordable housing opportunities for its diverse resident population is both a concern and an obligation of the City. The Housing Element is an official municipal response to the need to provide housing for all economic segments of the community. This Technical Data Report provides an overview of the population, socio-economic, and housing characteristics of the City of Huntington Beach. This information will help to define the City's current and projected housing needs, and provide direction in developing the City's Housing Element goals, policies and programs. It has been prepared with the assistance of City staff, and will be reviewed by a Housing Committee comprised of several City Council members and City residents. The final Technical Data Report will serve as the basis for developing the City's Housing Element which will set forth a comprehensive housing strategy for the City of Huntington Beach. This report will serve as a technical appendix to the Housing Element, and will be required to be updated at least every five years along with the Element. 1.2 Sources of Information Several sources of information provided insights into recent demographic and housing trends that have taken place within the City. Data from the 1980 Census and from the City's 1984 Housing Element were used as the base year for comparison for many of the tables in this report. Current housing unit data was obtained from the State Department of Finance, SCAG, and from City records and reports. Demographic and household information, e.g. current ethnic mix, household income, have primarily been obtained from estimates prepared by Urban Decision Systems, Inc. (UDS) . UDS annually prepares demographic/household updates based on data supplied by Federal , state, county and city sources. In order to ensure consistancy with population and housing unit totals obtained from the Department of Finance, slight adjustments were made to the UDS data to reflect these totals. In addition to providing household information on the City-wide level , the City has been divided into four geographic subareas to allow comparison among different areas in Huntington Beach. These subareas are comprised of Oldtown/Downtown, Harbor/Bolsa Chica, North Central and Southeast Huntington Beach, and are consistent with the Community Analysis areas defined by the Orange County Forecast Analysis Center. B 1-1 t ! 1.3 Huntington Beach Setting The City of Huntington Beach is an older suburban community situated in the northern coastal section of Orange County. The City is bordered by the unincorporated territory of Seal Beach to the northwest, the cities of Westminister and Fountain Valley to the north, the City of Costa Mesa to the east, and the Pacific Ocean to the south. The City's regional location is depicted in Figure 1. The dominant physical characteristic of the City is its miles of coastline, including the Bolsa Chica and Huntington Beach State Parks. Other points of interest include Bolsa Chica Ecological Reserve, Huntington Harbor, and the natural waterways of Anaheim Bay Landing. Existing develoment pressures in Huntington Beach can be attributed to its coastal locale and its central location within the Los Angeles - San Diego urbanizing corridor. B1-2 NK'Y G Los J Angeles po,77oRa Fwy Whittier Los Angeles County 1—Orange County r C m LL •\ COD O rs C '' HWY 91 Artesia ..1 p` T �r .r• A io Anaheim 3 9, a Orange Long Beach HWY 22 Al 9os Santa m m::•::. Ana cc 3 l�6"o = 4. HUNTINGTON BEACH ` = Newport Beach Laguna Beach 0 5 North scale miles FIGURE 1 REGIONAL LOCATION MAP r 1 t 2.0 POPULATION CHARACTERISTICS AND TRENDS 2.1 Population Growth The entire Southern California region, including Orange County, is among the fastest growing in the nation. The older, well -established metropolitan areas of Los Angeles and central Orange County have been extending outward to the counties to the north and east. The southern and eastern portions of Orange County, western San Bernardino and Riverside Counties, and southern Ventura County are the most recent areas to be developed around the older urban core of Los Angeles. Southern California, which includes Imperial , Orange, San Diego, Riverside, San Bernardino, Los Angeles, Ventura, and Santa Barbara Counties grew from 11,668,707 persons in 1970 to 13,750,217 persons in 1980, representing a population gain of over 17 percent (see Table 1) . During this same ten-year period, Orange County's population increased from 1,420,386 persons in 1970 to 1,932,708 persons in 1980, a gain of 512,322 persons or 36 percent. Growth during the 198Os has been rapid as well . Between 1980 and 1988, the population of the eight county area grew by an additional 2,651,577 persons (19%) . Orange County increased in population by 306,013 persons between 1980 and 1988, a 15.8 percent increase. TABLE 1 REGIONAL POPULATION GROWTH: 1970-1988 POPULATION CHANGE 1970 - 1988 COUNTY 1970 1980 1988 No. Imperial 74,492 92,110 111,105 36,613 + 49.2 Los Angeles 7,032,075 7,477,503 8,555,937 1,523,862 + 21 .7 Orange 1,420,386 1,932,708 2,238,721 818,335 + 57.6 Riverside 459,074 663,166 946,074 487,000 +106.1 San Bernardino 684,072 895,016 1,239,967 555,895 + 81 .3 San Diego -1,357,854 1,861,846 2,327,684 969,830 + 71 .4 Santa Barbara 264,324 298,694 345,003 80,679 + 30.5 Ventura 376,430 529,174 637,407 260,977 + 69.3 Source: U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report; California Dept. of Finance, Controlled Population Estimates for 1-1-88. B 2-1 r The 1988 population of Huntington Beach is estimated by the California Department of Finance to be 187,740 persons, making Huntington Beach the third largest city in Orange County behind only Anaheim and Santa Ana. As illustrated in Table 2, Huntington Beach's population grew by approximately 10% between 1980 and 1988, representing an average annual growth rate of 1.25%. This population growth rate is comparable with most jurisdictions surrounding Huntington Beach. The population growth rate in Orange County was somewhat higher than in Huntington Beach, reflecting the fact that the City is more built out than many areas of the County. TABLE 2 POPULATION TRENDS: HUNTINGTON BEACH AND SURROUNDING AREAS 1980-1988 Jurisdiction 1980(a) 1988 b % Increase Anaheim 219,311 243,021 10.8 Costa Mesa 82,562 91,891 11 .3 Fountain Valley 55,080 55,702 1.1 Huntington Beach 170,505 187,740 10.1 Newport Beach 62,556 69,597 11.3 Santa Ana 203,713 231,460 13.6 Westminster 71, 133 73,763 3.7 Orange County SMSA 1,932,709 2,238,721 15.8 Source: (a) U.S. Department of Commerce, Bureau of the Census, 1980 Census Report. (b) California Department of Finance, Controlled Population Estimates for 1-1-88. POPULATION TRENDS: HUNTINGTON BEACH AND SURROUNDING AREAS 1980-1988 20% d 10%- 40 iji iiii SF'•Sii EL .•E•i f � V ;f Gi;ii•il!Ei!1+!! i=iii!?°i;:-!+E iEi!iiii i'i:i:i:: iii;i°tii! •:i•:•r:• i; ii .::i: ;;!ii ;:.:!i; ::;i;:::�i;==; •::;i}:;[; 01 N. 0?6 Anaheim Costa Fountain Hntngtn Newport Santa Wstmstr. OmnpeCo. Mesa Valley Beach Beach Ana B 2-2 Among the City's four subareas, the Downtown/Old Town neighborhood experienced the greatest amount of growth between 1980 and 1988, increasing in population by more than 23 percent (see Figure 2) . The Harbor/Bolsa Chica subarea had the second highest growth rate, exhibiting a 16 percent increase in its resident population. The Southeast (8.3%) and North Central (3.1%) subareas grew by the smallest margin of increase, reflecting limited availability of developable land in these areas. Table 3 projects population within Huntington Beach through the year 2010. According to estimates prepared by the Orange County Forecast Analysis Center, the City's population is expected to grow 13.9 percent between 1988 and 2010, representing an average annual growth rate (.63%) significantly below that experienced during the 1980-1988 period (1.25%) . This growth would add 26,156 new residents to Huntington Beach, for a 2010 population of nearly 213,900. Factors which may influence future growth in Huntington Beach include growth controls, the availability of land suitable for residential development, and the price of housing. TABLE 3 CITY OF HUNTINGTON BEACH PROJECTED POPULATION GROWTH: 1988-2010 Change 1988-2010 1988 a 1995 b 2000 b 2010 b No. Total Population 187,740 199,577 203,291 213,896 26,156 13.9 In Households 187,162 198,963 202,665 213,237 26,075 13.9 In Group Quarters 578 614 626 659 81 14.0 Source: (a) Calif. Dept. of Finance, Controlled Population Estimates for 1-1-88. b) Orange County Forecast Analysis Center, OCP-88 Modified, May 2, 1989. Households and group quarters are estimates based on 1988 DOF proportions for households and group quarters. 2.2 Age Composition Table 4 illustrates the age distribution of Huntington Beach's residents in 1980 as reported by the census and in January 1988 as estimated by Urban Decision Systems. The median age in Huntington Beach in 1980 was 28.9, as compared to 29.5 in the County, 29.9 in California, and 30.0 in the United States. According to Urban Decision Systems, the median age in Huntington Beach had increased to 31.9 in 1988. This increase in the median age reflects an actual decline in the number 'of children under 20 years of age in Huntington Beach, indicating a decline in the influx of families with children. Considered alongside the limited growth in the B 2-3 Bp w co`oF�h �i♦• ♦♦�\ Cy\ / ♦♦i ram■■■ i r ♦♦ Ot r�♦� 1980: 59,151 `• r�/ ;� 1988: 61,027 ♦♦\ r�� ��\ j� �LFiGF % INCREASE: 3.1% e� ♦\� ��� r■ ELF l,eL ■ .yG NORTH / ♦:\ - �\ CENTRAL �� '�% DOWN �\ `\ TOWN/ `\ r .% j«. Meadowlark ' \ ' OLD- \ SOUTHEAST\ , Airport /w\ `\ TOWN ,\ r° 1980: 58,568 ':♦ ,\ / ,\ �` 1980: 29,312 \ /. HARBOR/ "�,\ �\ 1988: 63,418' •� ' BOLSA CHICA, a ♦♦j 1988: 36 073, \� % INCREASE: 8.3% �� % INCREASE: 23%. \ ` • Huntington �:• Harbor tl • 19 c. 80: 23,474 ♦♦ •. \ •\ � ♦ � ♦ Edison Company � I' ♦♦ 8 o 15 d C h i C d `\ Generating. S •s ; �1988: 27,222 .• ♦ sea Cliff Plant PACOIC • P Country Club \ t� • J: % INCREASE: 16% ♦♦♦ reserve .♦. r.•' ••..ram ' ..................... .......... ♦� wGMN�� _-'�_-��.� ■ •...■■■.■■.■..■ ■ ~-_� ■■■..■.r.... COAST /t N. P A C F I C O C E A N � 3636 (CFI K. North scale In eet FIGURE 2 POPULATION GROWTH:1980-1988 TABLE 4 CITY OF HUNTINGTON BEACH AGE CHARACTERISTICS OF POPULATION: 1980 & 1988 1980(a) 1988 b # of % of # of % of Age Range Persons Population Persons Population 0-5 13,024 7.6 13,517 7.2 6-13 21,341 12.5 19,337 10.3 14-17 13,074 7.7 11,828 6.3 18-20 10,237 6.0 9,387 5.0 21-24 14,550 8.5 14,456 7.7 25-34 32,910 19.3 36,603 19.5 35-44 24,724 14.5 34,356 18.3 45-54 17,808 10.4 20,276 10.8 55-64 12,717 7.5 13,705 7.3 65+ 10,120 5.9 14,268 7.6 TOTAL 170,505 100.0 187.740 100.0 MALE 84,634 49.6 92,369 49.2 FEMALE 85,871 50.4 95,371 50.8 Median Age 28.9 31.9 Source: (a) U.S. Department of Commerce, Bureau of Census, 1980 Census Report. (b) Urban Decision Systems, Demographic Trends; 1980-88-93. CITY OF HUNTINGTON BEACH: AGE CHARACTERISTICS OF POPULATION 20% 1980 01988 10% L' a ji:.ji j: i j I: :.• :.:::: :: :j:;i: ::?�;: j{:jjj •:•: ';:; :ii tii it'ifi �yi• j::i�j : 1:• �:i:71 pp,,�� iii ir: ;'�i3 '•ii!1� iiiiii i jli jjjj ii:jjj "ji; iii:i; 0-5 6-13 14-17 18-20 21-24 2S-34 3S-44 45-54 S5-64 65+ Age Groupings B 2-5 City's young adult population (age 25-34) , these factors support the finding that the City's housing stock is inaccessible to many first-time homebuyers. The mid-adult age cohort (age 35-44) experienced the greatest increase in population over the 1980-88 period, the higher income of this group more able to afford the City's housing market. The City's elderly population (those 65 and over) increased from 5.9 percent of the population in 1980 to 7.6 in 1988, representing an increase of over 4,000 persons. Nonetheless, this is still below both the County's (8.3%) and State's (9.0%) proportion of elderly in 1980. The proportion of elderly persons in Huntington Beach can be expected to continue to increase as those persons between the ages of 35 and 64 (over one-third of the population) grow older, consistent with nationwide trends of a large aging population. 2.3 Race and Ethnicity Table 5 presents the race and ethnic make-up of Huntington Beach in 1980 as reported by the census and in 1988 as estimated by Urban Decision Systems. As this table reveals, the majority of Huntington Beach's population is White and comprised 90.4 percent of the City's 1980 population, contrasting to 86.4 percent Whites County-wide. The proportion of White persons had decreased slightly to 88.6% in 1988, reflecting an influx of other ethnic groups into the community. The second largest ethnic group in the City is persons of Spanish/Hispanic origin, representing eight percent of the City's 1988 population; this is substantially below the County-wide proportion of 14.8 percent in 1980. Asian/Pacific Islanders comprise 7.7 percent of the City's population, reflecting a significant increase over 1980; the County-wide proportion of Asian/Pacific Islanders was 4.5 percent in 1980. Blacks, American Indians, and "Other" ethnic groups are the least represented groups in Huntington Beach, each comprising just over one percent of the City's 1988 population. TABLE 5 CITY OF HUNTINGTON BEACH ETHNIC COMPOSITION: 1980 & 1988 1980(a) 1988(b) Race and Ethnicity Population Total Population Total White 154,156 90.4 166,338 88.6 Black 1,218 .7 2,065 1 . 1 Amer. Indian 1,204 .7 2,065 1 . 1 Asian/Pacific Islander 8,453 5.0 14,456 7.7 Other 5,474 3.2 2,816 1 .5 Total 170,505 100.0 187,740 100.0 Spanish/Hispanic Origin 13,427 7.9 15,019 8.0 Source: (a) U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report. (b) Urban Decisions Systems, Demographic Trends: 1980-88-93. B2-6 The four geographic subareas in the City evidence some differences in racial composition as illustrated in Figure 3. The Harbor/Bolsa Chica and Downtown/Old Town areas are the least racially diverse, White persons comprising over 91 percent of their resident population. North Central Huntington Beach, on the other hand, exhibits the highest concentration of Spanish/Hispanic (10%) and Asian/Pacific Islander (9.9%) populations in the City. The resident population in Southeast Huntington Beach generally parallels the ethnic make-up of the City as a whole. BZ -7 dF w 11 •\ YS �. WHITES: 52,279 (85.6%) e •\� '� I; BLACKS: 920 (1.5%) Y�F� F,Q ••� AMER. INDIAN: 859 (1.4%) F o % �• % �, ASIAN: 6,050 (9.9%) NORTH •� ,� OTHER: 919 (1.5%) CENTRAL ^ 0t�ti • ✓ �� �L •• � F SPANISH/HISPANIC: 6,103 (10%) �?`� �� %OWN-% �� 5`o-� F�F `• TOWN/ •� jM Meadowlark w OLD- SOUTHEAST Airport a / �\ TOWN �\ WHITES: 56,252 (88,7%) ;• ,� / �� BLACKS: 634 (1.0%) e �� :'/♦ HARBOR/� / �'t1�� \`� AMER. INDIAN: 571 (.9%) •�� BOLSA CHICA` WHITES: 24,772 (91%) . .!I WHITES: 33,028 (91.6%) ASIAN: 5,073 (8.0%) BLACKS: 191 (.7%) ■; .;�;� ° BLACKS: 428 (1.2%) `� OTHER: 888 (1.4%) :� # Huntington "" AMER. INDIAN: 163 (.6%) ; t♦� Gf� �MER. INDIAN: 390 (1.1%) `\ SPANISH/HISPANIC: 4,186 (6.6%) \� �♦ Harbour 1♦1 ASIAN: 1,851 (6.8%)i i` Edison t • ASIAN: 1,473 (4.1%) `\ Generating fin' K�• 1� OTHER: 245 (.9%..' ,.� Sea Cstt I■ • I. . . • Countr club OTHER: 754 (2.1%) Ptantt vACg ; ♦.•♦ SPANISH/HISPANIC: 1 5423 (5.6%) r �. ♦. SPANISH/HISPANIC: 3,210 (8.9%0 `� ■ P'tCg,C,L:■•��1.......r� ■... ■ ..- ■....■.................. �..■�.■ .. .♦1♦ t{iGM�'�AY -_� �1���__ t• - . �`__■■■■■■=...... �•_ COAST P A C F 1 C O C E A N 0 3636 K North scale+� n tweet (C� FIGURE 3 RACE AND ETHNICITY:1988 3.0 HOUSEHOLD CHARACTERISTICS The characteristics of the population provide an essential component toward the understanding of growth and change in a community. In addition, information collected on the household level provides a good base for the analysis of a community's housing needs. The Bureau of the Census defines a household as all persons who occupy a housing unit, which may include single persons living alone, families related through marriage or blood, and unrelated individuals living together. Persons living in retirement or convalescent homes, dormitories, or other group living situations are not considered households. 3.1 Household Composition In 1980, there were a total of 61,126 households in the City of Huntington Beach. According to the Department of Finance, the City had grown to 68,395 households in 1988, representing an 11.9 percent increase during the eight year period. As presented in Table 6, families represented the City's predominant household type in 1980 (72%), equivalent to the County-wide proportion of family households. Single-person households represented the second largest household group in Huntington Beach, comprising 19 percent of all households. An estimated 9 percent of the City's households fell within the "other" category, representing individuals who share a housing unit and are not related by blood or marriage. Based on 1988 household estimates by Urban Decision Systems, the proportion of family households in Huntington Beach has decreased from 72 to 68 percent of total households. This decline in the proportion of family households could partially be reflective of the increased number and proportion of renter households in the City. Single-person households on the other hand have increased in relative magnitude since 1980 and currently comprise an estimated 23 percent of the City's total households. Finally, current estimates indicate a relatively constant proportion of non-related individuals living together, "other" households comprising 9 percent of the total . TABLE 6 CITY OF HUNTINGTON BEACH HOUSEHOLD TYPE: 1980 & 1988 1980 1988 No. Households % of Total No. Households % of Total Families 43,822 72% 46,388 68% Singles 11,584 19% 15,854 23% Other 5,720 9% 6,153 9% Total 61,126 68,395 Source: U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report; California Dept. of Finance Controlled Population Estimates for 1-1-88; Urban Decision Systems, Demographic Trends: 1980-88-93. B3-1 t 3.2 Household Size Household size is an important indicator identifying sources of population growth as well as overcrowding in individual housing units. A city's average household size will increase over time if there is a trend towards larger families. In communities where the population is aging, the average household size may actually decline. Average household size in Huntington Beach was 2.78 persons per unit in 1980 and had decreased to 2.74 in 1988 (see Table 7) . Projections to 1993 depict a continued decrease in the City's average household size to 2.67 persons per unit. Several factors occurring in Huntington Beach are influencing this trend. The proportional increase in renter-occupied housing which occurred between 1980-1988 contributes to smaller_ households, as does the relative decrease in family households. Orange County's household size is comparable to Huntington Beach's, and reflects the same trend towards decreasing household size. TABLE 7 CITY OF HUNTINGTON BEACH HOUSEHOLD SIZE: 1980-1993 1980(a) 1988 b 1993 c Huntington Beach 2.78 2.74 2.67 Orange County 2.78 2.75 Source: (a) U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report. (b) Calif. Dept. of Finance Controlled Population Estimates for 1-1-88. (c) Urban Decisions Systems, Demographc Trends: 1980-88-93. 3.3 Overcrowding The Census defines overcrowded households as units with greater than 1 .01 persons per room, excluding bathrooms, kitchens, hallways, and porches. Ovecrowding reflects the inability of households to buy or rent housing which provides reasonable privacy for their residents. According to the 1980 Census, the incidence of overcrowding in Huntington Beach was minimal , with only 3.3 percent of all housing units defined as overcrowded, compared with 5.6 percent County-wide. The census also reveals the prevalence of overcrowding among renter households, with 74 percent of the City's overcrowded households renter-occupied. B3-2 3.4 Household Income An important factor with respect to housing affordability is household income. While upper income households have more discretionary income to spend on housing, low and moderate income households are more limited in the range of housing they can afford. The presence of a large number of low and moderate income households in a community like Huntington Beach where housing costs are high is indicative of a high level of housing overpayment. Huntington Beach's median household income in 1979 1 1)$24,015, whereas median family income was slightly higher at $26,985. As illustrated in Table 8, household and family incomes in Huntington Beach approximate those in the County as a whole, with household incomes 6 percent higher than the County and family incomes just 4 percent higher. This table also reveals the wide variation in incomes among nearby jurisdictions. For example, the City of Fountain Valley had a median household income 31 percent higher than the County median, while the City of Santa Ana's median household income was 18 percent lower than the median for the County. Huntington Beach's 1979 household income is greater than that in the cities of Anaheim, Costa Mesa, Santa Ana and Westminster, and is surpassed by the nearby cities of Fountain Valley and Newport Beach. TABLE 8 MEDIAN HOUSEHOLD AND FAMILY INCOME: HUNTINGTON BEACH AND SURROUNDING AREAS 1979 MEDIAN PERCENT MEDIAN PERCENT HOUSEHOLD ABOVE/BELOW FAMILY ABOVE/BELOW JURISDICTION INCOME COUNTY MEDIAN INCOME COUNTY MEDIAN Anaheim $20,026 -11.2% $23,112 -10.8% Costa Mesa $19,309 -14.4 $22,485 -13.2% Fountain Valley $29,590 +31.2% $31,051 +19.8% Huntington Beach $24,015 + 6.5% $26,985 +4.1% Newport Beach $27,516 +22.0% $36,447 +40.6% Santa Ana $18,362 -18.6% $20,193 -22.1% Westminster $22,930 + 1.7% $25,050 - 3.3% Orange County SMSA $22,557 - $25,918 - Source: U.S. Dept. of Commerce, Bureau of Census, 1980 Census Report (a) Family households are defined by the Census as households containing two or more persons related by blood, marriage, or adoption. Family household income is generally larger than household income because family households tend to have more members and, therefore, more potential wage earners than non-family households. B 3-3 a The Department of Housing and Urban Development and the State Department of Housing and Community Development have developed the following income categories and their definitions: Very Low Income - less than 50 percent of the regional (County) median. Low Income - between 51 and 80 percent of the County median. ° Moderate Income - between 81 and 120 percent of the County median. ° Upper Income - greater than 120 percent ,of the County median. The City's 1979 income distribution can be divided into these four income categories through interpolation, as presented in Table 9. In addition, estimates of 1988 household income in Huntington Beach have been obtained from Urban Decision Systems, and have been grouped into the four income categories based on a 1988 median household income of $44,400 for Orange County. Comparing the City's income distributions in these two years provides insight into the changing income characteristics of the City's population. Huntington Beach has experienced both a proportional and a numeric increase in households classified as Very Low, Low and Moderate Income during the 1979-1988 period. Very Low Income households have experienced the greatest increase of any of income group, with 24.5 percent of the City's 1988 households earning less than half the county median income, as compared with 18 percent in 1979. Low Income households have experienced a more modest increase from 16.2 to 18.7 percent of total households, as have Moderate Income households which increased from 22.7 to 23.3 percent of total households. Finally, the City has experienced a significant decrease in Upper Income households from 42. 1 to 33.5 percent of total households., and an actual numeric reduction of 3,373 households. Explaining these significant changes in the City's income distribution is the fact that Orange County median household income increased 97 percent during the 1979-1988 period from $22,557 to $44,400. Household incomes in Huntington Beach experienced a somewhat lesser increase from $24,015 to $40,375, or 68 percent, during the same time period. Household Income by Geographic Subarea Figure 4 presents estimated 1988 household income for each of the four geographic subareas evaluated. Downtown/Old Town exhibited the lowest incomes in the City, with a median household income of $31 ,024, substantially below the City-wide median of $40,375. Incomes in North Central Huntington Beach ($40,222 median) were comparable to those City-wide. Harbor/Bolsa Chica and Southeast Huntington Beach evidenced the highest incomes in the City, with 1988 median household incomes of $44,569 and $45,900 respectively. B 3-4 TABLE 9 CITY OF HUNTINGTON BEACH INCOME GROUPS: 1979 & 1988 1979 1988 Number of Proportion Number of Proportion of Income Group Households of Households Households Households Very Low 10,980 18.0% 16,778 24.5% (Less than 50% County median income) Low Income 9,850 16.2% 12,753 18.7% (50% - 80% County median income) Moderate Income 13,835 22.7% 15,939 23.3% (80-120% County median income) Upper Income 26,298 43.1% 22,925 33.5% (Greater than 120% County median income) TOTAL 60,963 100% 68,395 100.0% 1979 median County household income: $22,557 1988 median County household income: $44,400 Source: U.S. Dept. of Commerce, Bureau of Census, 1980 Census Report; Urban Decision Systems, Income: 1980-88-93; Cotton/Beland/Associates, Inc. CITY OF HUNTINGTON BEACH INCOME GROUPS: 1979 AND 1988 5 Orb IJ 1979 4 09b E 1988 d 3 0?6 c .r 20% 10A6 OR :tit.;{•{;%•{ ;:;_,:;:;: Very Low Low Moderate Upper Income Group B 3-5 B F' °Fti /:•^; °y\ /"'•.:•> -= MEDIAN HOUSEHOLD INCOME �`°�•�%'�% �\ /;�'♦ .;C/.:'' CITY-WIDE: $40,375 ♦ E NORTH CENTRAL •\:\ / '�, ,\.\ %DOWN �\ TOWN/ \ '� '\ ; jM Meadowlark '\ ,\ OLD- SOUTHEAST • \ Airport /"\ TOWN \ ° /:•' HARBOR/\ $31,024 ,\�\ $451900 �\ /o BOLSA CHICA $44/569 a �;�� �° •' • Huntington /♦• Harbour •• O (�• • �` ,\ Edison Company ■ ♦• B O I s a C h i c a ,\ Generating \, I■ ♦ Country Club Cliff Plana PACK • ♦ \ ri �• � ub J. Preserve --•r••�'• •�• •. ... ............ ■..q.-.r.V.p..V.p�♦''• COAST �WA�--_- -_--- - P A C F I C O C E A N 0 3636 lldba K North coal■1—n i-e FIGURE 4 MEDIAN HOUSEHOLD INCOME:1988 Table 10 presents a breakdown of incomes into the four income groups for each of the geographic subareas. This data indicates that Downtown/Old Town contains the highest proportion of Very Low Income households, an estimated 35 percent of the total households in this area classified as Very Low Income. Nearly one-quarter of the households in North Central Huntington Beach are Very Low Income, with Southeast Huntington Beach and Harbor/Bolsa Chica each containing approximately 20 percent Very Low Income households. Consistent with its high concentration of Very Low Income households, Downtown/Old Town contains the highest proportion (22%) of Low Income households in the City. North Central , Harbor/Bolsa Chica, and Southeast Huntington Beach contain 19, 18, and 16 percent Low Income households respectively. This income data indicates that, while concentrations of lower income households are located in Downtown/Old Town and to a lesser degree in North Central Huntington Beach, lower income households are located throughout the City. 3.5 Housing Affordability State and Federal standards for housing overpayment are based on an income-to-housing cost ratio of 30 percent and above. Households paying greater than this amount have less income left over for other necessities such as food, clothing, utilities and health care. It is recognized, however, that Upper Income households are generally capable of paying a larger proportion of their income for housing, and therefore estimates of housing overpayment generally focus on lower income groups. The Regional Housing Needs Assessment (RHNA) prepared by SC/ g)identifies housing overpayment for the City's lower income households based on data from the 1980 census. According to the RHNA, an estimated 10,565 (or 45 percent) of Huntington Beach's lower income households were paying more than 30 percent of their income on rent or mortgage payments as of January 1, 1988. Of these overpayers, 5,961 are classified as Very Low Income and 4,604 are Low Income. Housing Overpayment by Tenure The distinction between renter and owner housing overpayment is important because, while homeowners may over-extend themselves financially to afford the option of home purchase, the owner always maintains the option of selling the home. Renters, on the other hand, are limited to the rental market, and are generally required to pay the rent established in that market. The Regional Housing Needs Assessment has broken down housing overpayment by housing tenure, as presented in Table 11. Of the total 10,565 lower income households identified as overpayers, 8,638 were renter households and only 1,927 were owner households. This discrepancy is largely reflective of the tendency of renter households to have lower incomes than owner households. (a) Lower income households are defined as households whose total gross income is less than 80 percent of the County median. "Lower Income" encompasses both Very Low and Low Income groups. B 3-7 a . TABLE 10 CITY OF HUNTINGTON BEACH 1988 INCOME DISTRIBUTION BY SUBAREA Downtown/ Harbor/ North Income Group Old Town Southeast Bolsa Chica Central Very Low Income 35% 19% 21% 24% (Less than $22,200) Low Income 22% 16% 18% 19% ($22,200 - $35,519) Moderate Income 20% 25% 21% 26% ($35,520 - $53,279) Upper Income 23% 40% 40% 31% ($53,280 and above) TOTAL 100% 100% 100% 100% Source: Urban Decision Systems; Income: 1980-88-93; Cotton/Beland/Associates, Inc. CITY OF HUNTINGTON BEACH: 1988 INCOME DISTRIBUTION BY SUBAREA 1009C a 0 ® VERY LOW ® LOW _ ® MOD ERAT E 0 ■ UPPER ~ 0% Downtown! Southeast Harborl North Central OI dt own B olsa Chica Subarea B3-8 TABLE 11 CITY OF HUNTINGTON BEACH LOWER INCOME HOUSEHOLDS PAYING GREATER THAN 30% OF INCOME FOR SHELTER Household Very Low Low Income Total Tenure Income Owner 1,137 790 1,927 Renter 4,824 3,814 8,638 Total 5,961 4,604 10,565 Source: SCAG Regional Housing Needs Assessment, June 1988. 3.6 Special Needs Groups Certain segments of the population may have a more difficult time finding decent, affordable housing due to special circumstances. In Huntington Beach, these "special needs" households include the elderly, handicapped persons, large families, female-headed households, farmworkers, and the homeless. The number of special needs households and/or persons in Huntington Beach is summarized in Table 12. TABLE 12 CITY OF HUNTINGTON BEACH SUMMARY OF SPECIAL NEEDS GROUPS: 1988 Number of % of Total Needs Group Households Persons Households Po ulation Elderly (65+) (a) 14,268 7.6 Handicapped (b) 1,444 2. 1 Large Families (c) 6,878 9.8 Female-headed Households (d) 6,316 9.0 Farmworkers (e) 878 (1984) .6 Sources: (a) Urban Decisions Systems, Demographic Trends: 1980-88-93. Proportions of elderly applied to Calif. Dept. of Finance 1988 population estimate. (b) City of Huntington Beach, Housing Assistance Plan, 1988-1991 . (c) Urban Decisions Systems, Demographic Trends: 1980-88-93. Proportions of large families applied to Calif. Dept. of Finance 1988 reported households. (d) Proportion of female-headed households in 1984 as reported by Huntington Beach Housing Element, applied to Calif. Dept. of Finance 1988 reported households. (e) City of Huntington Beach Housing Element, July 1984. B 3-9 Elderly: The special needs of many elderly households result from their lower, fixed incomes, physical disabilities, and dependence needs. An estimated 14,266 elderly (65 years and over) resided in Huntington Beach in 1988, representing 7.6 percent of the total population. The proportion of elderly can be expected to increase as those persons between the age of 35 and 64 grow older. Many elderly households in the City are of lower income, and of these the City's 1988 Housing Assistance Plan (HAP) estimates 1,226 are in need of rental assistance. Escalating housing costs, particularly in the rental market, severely impact housing affordability for the elderly, who are usually on fixed incomes. Housing needs of the elderly can be addressed through the provision of smaller units, second units on lots with existing homes, shared living arrangements, congregate housing, and housing assistance programs. Handicapped: Physical handicaps can hinder access to housing units of traditional design as well as limit the ability to earn adequate income. Huntington Beach's Housing Assistance Plan identifies 1,444 low and moderate income households that have at least one handicapped person, representing approximately .8 percent of total households within the City in 1988. The City's handicapped can be classified according to the following household groups: City of Huntington Beach Handicapped Households Elderly 86 Single, 425 non-elderly Small Family 749 Large Family 184 Total Households 1,444 Source: City of Huntington Beach, Housing Assistance Plan, 1988-1991 Housing opportunities for the handicapped can be maximized through the provision of affordable, barrier free housing. Large Families: Large families are identified as a group with special housing needs based on the limited availability of adequately sized, affordable housing units. Large families are often of lower income, frequently resulting in the overcrowding of smaller dwelling units and in turn accelerating unit deterioration. The demand for larger units in the City can be expected to increase based on the City's growing ethnic population and the desire/need of many of these ethnic groups to cohabitate with extended families. Approximately 9.8 percent of the City's households in 1988 had five or more members, translating to 6,878 households. This represents a decrease from 1980 when large households comprised 12 percent of the City's total households. The City's Housing B 3-10 . J Assistance Plan identifies 767 lower income large families in need of rental assistance, representing eight percent of total households needing rental subsidy. The housing needs of large households can be addressed . through the provision of affordably priced larger housing units. Female-Headed Households: Female-headed households tend to have low incomes, thus limiting housing availability for this group. In 1984, 9 percent of Huntington Beach's households were headed by a woman, as reported in the City's Housing Element. Applying this percentage to the City's 1988 housing stock translates to an estimated 6,316 female-headed households. The City's Housing Assistance Plan estimates that 4,268 female-headed households (67%) in Huntington Beach have dependent children under 18 years of age. Thus, providing housing opportunities for this group relates both to affordability and services related to the care of children. Farmworkers: The special housing needs of many farmworkers stem from their low wages and the insecure nature of their employment. Those persons working in the farming industry have been counted by the 1980 U.S. Census and are also included in the City's 1984 Housing Element. According to the Census, approximately one percent of the total labor force in Huntington Beach was employed in farming, forestry, or fishing. According to the City's Housing Element, there were 878 persons employed as farmers residing in the City in 1984, or .6 percent of those persons aged 18 and over. Homeless: Throughout the country, homelessness has become an increasing problem. Factors contributing to the rise in homeless include the general lack of housing affordable to low and moderate income persons, increases in the number of persons whose incomes fall below the poverty level , reductions in public subsidy to the poor, and the de-institutionalization of the mentally ill . Based on estimates by the Orange County Homeless Issues Task Force, the County's homeless population consists of approximately 8,000 to 10,000 individuals, some of whom are located in Huntington Beach. As a beach community, the City- attracts numerous individuals who congregate along the beach, under the pier, by the Santa Ana River bed, and in Central Park. The Episcopal Service Alliance (ESA) , an ecumenical organization in Huntington Beach which provides social services for homeless, reported for February 1989 the number and types of homeless which sought their assistance. As the figures below reveal , the majority of homeless seeking assistance are couples with children (195) and lone females with children (152) . These totals, however, represent only a portion of the actual number of homeless in the City. ESA indicates that as referrals of the service continue to spread, the total number of homeless reported continues to increase every month. B 3-11 t City of Huntington Beach Homeless Seeking Assistance Total - Type Individuals Homeless with no shelter 17 Homeless in Motels 21 Homeless and Mentally Ill 3 Homeless Families 24 Couples 12 Couples with children 195 Lone Females 16 Lone Females with children 152 Lone Males 37 Lone Males with children 4 Total 481 Source: Episcopal Service Alliance, February 1989 Project Self-Sufficiency In attempts to curtail additional persons and families from becoming homeless, the City's Economic Development Department runs "Project Self-Sufficiency" (PSS) . The program, which first began in 1984 as a nationwide HUD demonstration project, is funded primarily through CDBG Grants and private sector donations. As its name suggests, the program aims to make persons independent of government subsidies and become self-sufficient. To meet this goal , PSS provides housing assistance in the form of Section 8 housing vouchers to low-income, single parents who are either currently homeless or at risk of becoming homeless. The program also matches the single parent with the appropriate agencies in the community to receive needed assistance such as food, clothing, childcare and job training. In order to qualify for the voucher program, persons must reside or work in Huntington Beach or come from a homeless shelter. Seventy percent of all persons who have participated in the program have been Huntington Beach residents, with the remaining 30 percent referred from sponsored shelters. When PSS is unable to provide services to those in need, the program refers these persons to other social services in the surrounding area. B 3-12 I r t Area Social Service Providers As most homeless individuals migrate to available services, social service agencies located outside the City also serve Huntington Beach homeless. Table 13 presents a listing of agencies which provide social services in the immediate area of the City. The City provides funding ($43,000 in 1988) to several of these agencies for homeless services. As evidenced by this inventory, only the Episcopal Service Alliance, Saints Simon and Jude Catholic Church are located in the City's jurisdiction. A new shelter targeted at assisting the City's numerous adolescent homeless is set to open later this year. The Huntington Youth Shelter will be located in a rehabilitated structure in Central Park, and will provide overnight accommodations and counseling to homeless and runaway youths. Maximum stay will be limited to two weeks, with the goal of reuniting the youths with family members. Based on the relatively few existing emergency shelters in the Huntington Beach area and the number of homeless persons who reportedly cannot be accommodated by the existing social service providers, there appears to be an unmet need for an additional emergency shelter in Huntington Beach. While the Huntington Beach Youth Shelter will provide assistance to the City's adolescent homeless, there will remain a significant unmet need for homeless singles and families. Beyond an emergency shelter, the homeless service agencies stated that the most immediate and important need is for increased operational funds. The City can help address these identified needs by continuing to provide supplementary funding to existing social service providers, and by encouraging the development of a shelter. In addition, by providing decent and affordable housing opportunities, the City can help to curtail additional persons and families from becoming homeless. B3-13 TABLE 13 SOCIAL SERVICE AGENGIES WHICH PROVIDE SERVICES FOR THE HOMELESS IN THE HUNTINGTON BEACH AREA Name Location Description Project Self-Sufficiency, Provides housing vouchers (58) . Huntington Beach Assists with finding childcare, food, and clothing. Accommodates residents or workers of Huntington Beach or persons coming from shelters. Episcopal Service Alliance, Provides lodging, food, clothing, Huntington Beach bus coupons, medical attention, help with payment of utilities, and counseling. Accommodations available for men, women, families on first come basis. Sts. Simon and Jude Catholic Church, Provides food. Accommodates Huntington Beach families on emergency per night basis, and only when church funds are available. Interval House, Provides 30-45 day shelter service Seal Beach and individual and group counseling to battered women and children. Salvation Army, Daytime Service provides food and Santa Ana housing referrals for families. Nighttime Service provides shelter for men, women, and families for 3 nights, offered on an emergency first come basis. Shelter For Homeless, Provides room and board for 15-day Westminster probation period in which time all boarders must find employment. If employment is verified, the stay may extend up to 120 days. Accommodations available for men only on a first come basis. B3-14 TABLE 13 SOCIAL SERVICE AGENGIES WHICH PROVIDE SERVICES FOR THE HOMELESS IN THE HUNTINGTON BEACH AREA (Continued) Name Location Description Orange Coast Interfaith Shelter, Accommodations available primarily Costa Mesa for couples, families, and single women with children. Maximum 25-30 individuals. Shelter provided on an emergency per night basis. Service includes food, shower, and laundry. Agency also offers two month program serving 12 families. Families required to save 80 percent of income during the time period. Counseling services offered in parenting, budgeting, and job referrals. Amparo Youth Shelter, Accommodates children between the Garden Grove ages of 11-17. Two-week in-residence counseling program dealing with problems associated with family, school , drugs, and alcohol . Follow-up 4-6 week after-care program. Shelter provided for children facing extreme homeless- ness: Source: Cotton/Beland/Associates, Inc. B 3-15 L 4.0 HOUSING UNIT CHARACTERISTICS 4.1 Housing Growth While residential development in many urbanized areas is beginning to slow due to the diminshing supply of available land, Huntington Beach's housing stock has continued to experience substantial growth during the 1980s. In 1980, Huntington Beach had a housing stock of 63,686 units. By January 1988 that total had risen to 70,179, an increase of more than 10%. Comparing the residential growth rates of Huntington Beach with nearby jurisdictions (see Table 14) , the City's 10.2% increase in housing units during the eight year period exceeded the housing growth experienced in these adjacent areas. However, the entire area's growth as a whole fell far short of the County's 15% increase between 1980 and 1988. TABLE 14 HOUSING TRENDS: HUNTINGTON BEACH AND SURROUNDING AREA 1980-1988 No. of Housing Units 0 Jurisdiction 1980 a 1988 b Increase Anaheim 82,725 89,873 8.6% Costa Mesa 34,023 37,282 9.6% Fountain Valley 16,758 17,548 4.7% Huntington Beach 63,686 70,179 10.2% Newport Beach 31,397 34,336 9.4% Santa Ana 67,180 72,629 8.1% Westminster 24,563 25,836 5.2% Orange County 721,514 829,406 15.0% Source: (a) U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report; (b) California Dept. of Finance, Controlled Population Estimates for 1-1-88 HOUSING TRENDS: HUNTINGTON BEACH AND SURROUNDING AREA 1980-1980 12?6 10% 84E u c.+ C c u 4% a 29b €I €f s ii s 0% " Anaheim Co3ta Fountain HntngtnNewport Santa Wstmstr. Orange Co. Mesa Valley Beach Beach Ana B 4-1 4.2 Housing Type and Tenure During the sixties, vacant land was plentiful in Huntington Beach, and housing construction was characterized almost exclusively by large tracts of single family homes. During the early seventies, planned condominium developments and small multi-family rental units became popular in response to changing housing demands, land constraints, and market conditions. Housing growth in the eighties is characterized by multi-family apartments and condominiums, lower density duplex and triplex units, and some single family dwellings. While Huntington Beach has experienced significant growth in its housing stock during the 1980s, the composition of the housing stock (single versus multi -family) has undergone little change. Single-family dwelling units continue to comprise the predominant housing type in the City, constituting three-fifths of all housing (refer to Table 15) . Multi- family units, however, exhibited a greater rate of growth during the 1980-1988 period, increasing by 13 percent, as compared with 9 percent for single-family units. After tapering off in the mid-eighties, condominium activity has begun to increase again in Huntington Beach. Condominium units comprise over half of the City's multi-family housing stock, with two-thirds of these units located in the Southeast and Downtown/Old Town neighborhoods. Due to the limited amount of available land in the City for additional single-family development and the presence of multi-family zoning in many single-family neighborhoods, future residential development in Huntington Beach can be expected to consist largely of multi-family units. TABLE 15 CITY OF HUNTINGTON BEACH HOUSING TRENDS: 1980-1988 No. of Housing Units Change 1980-1988 - Housinq Type 1980 a 1988 b # Single-Family 38,644 42,326 3,682 9.5% Multi-Family 22,245 25,170 2,925 13.1% Condominium -- (13,151) (c) Mobile Homes 2,667 2,683 16 0.6% Total Housing Units 63,686 70, 179 6,493 10.2% Total Occupied Units 61,126 68,395 7,269 11 .9% Vacancy Rate 3.90% 2.54% Source: (a) U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report; (b) California Dept. of Finance, Controlled Population Estimates for 1-1-88; (c) Huntington Beach Dept. of Community Development. B 4-2 The tenure distribution of a community's housing stock (owner versus renter) influences several aspects of the local housing market. Residential mobility is influenced by tenure, ownership housing evidencing a much lower turnover rate than rental housing. Housing overpayment, while faced by many households regardless of tenure, is far more prevalent among renters. Tenure preferences are primarily related to household income, composition, and age of the householder. For the past several decades, Huntington Beach has been a predominantly owner-occupied community. However, the ratio of owner-occupied to renter-occupied units has been steadily declining since 1970, at which time 70 percent of the City's households were owner-occupied. In 1980, owner-occupied housing comprised 58 percent of the City's households, dropping further to 53 percent in 1988. Several factors have contributed to this trend. As illustrated in Table 15, the City has experienced a larger proportional increase in the construction of multi-family versus single-family units over the past decade. While a significant proportion of the multi -family housing stock is condominium units, a large number of these are rented out. Other factors which explain the continued reduction of owner-occupied units in the City include rapidly escalating home values, higher interest rates and speculation, and the increased mobility of households. Among the City's four subareas, housing tenure varies significantly (refer to Figure 5) . The greatest concentration of renter households is in the Downtown/Old Town subarea, with 68 percent of the units in this area occupied by renters. Its neighbor to the east, the Southeast subarea, has the largest owner-occupied population, totalling 15,245 (71%) owner households. Contributing to the Southeast's predominantly owner-occupied status is its large number of condominium units. The Harbor/Bolsa Chica neighborhood most closely mirrors the City's 1988 owner/renter ratio, with a mix of 57 percent to 43 percent. Housing tenure in North Central Huntington Beach is evenly split between owners and renters. 4.3 Age and Condition of Housing Stock Table 16 illustrates the period in which housing units were built in Huntington Beach. Reflective of the growth in Orange County, more than 80 percent of Huntington Beach's housing units have been constructed between 1960 and 1978. Housing development has maintained a steady pace into the 1980s, with an additional 9,011 dwelling units or 12.8% of the total housing stock being developed between 1979 and 1988. The majority of these units are in good structural condition, a result of the large number of planned subdivisions in addition to the relatively young age of these tracts. B 4-3 CITY TOTALS: 68,395 HOUSEHOLDS BF J` G`OFy� /%�,�•�\- \✓ •:� = � 36,502 OWNERS (53.4%) 31,893 RENTERS (46.6%) 10,239 OWNERS (49.4%) 10,464 RENTERS (50.6%) oo �'•, �� •; r■ GAF •• • F NORTH �•�� 15,245 OWNERS (70.9%) `\ \ CENTRAL •. - \FtiL ��/ \✓ �� i\ ,\ DOWN' �' 6,238 RENTERS (29.1%) F~LF `\ TOWN/ �� • jM meadowlark \ \ ' OLD- � SOUTHEAST • \ Airport /^\ `\ TOWN �% P `4. /• HAR60R/ .>�\ 4,897 OWNERS (31.7%) �\ P� �o� •�\ \ / 6,121 OWNERS (56.8%). QOLSA CHICA •• /•' ♦J 10,533 RENTERS (68.3%) • 4,658 RENTERS (43.2%), A �< \ P � ♦ iluniingtun � --- ♦• (�' q "� Harbour Edison I Company' 3 •\• i o I s a C h i C a `\ Generating i r: :♦ ♦� Sea Cliff Plant PACIK ♦ Country C • lub t J; Preserve # \ r . • �.��.... ...... MGµ WA _� ♦ �- �, P A C F I C O C E A N 0 3636, (CFI North scale In feet FIGURE 5 HOUSING TENURE:1988 i TABLE 16 CITY OF HUNTINGTON BEACH AGE OF HOUSING STOCK: 1988 # of % of Year Built Units Total 1939 or earlier 1,096 1.6% 1940 - 1949 879 1.3% 1950 - 1959 3, 109 4.4% 1960 - 1969 28,662 40.8% 1970 -1974 16,725 23.8% 1975 - 1978 10,697 15.2% 1979 - March 1980 2,478 3.5% A ril 1980 - Jan 1988 6,533 9.3% Totals: 70,179(a) 100.0%(b) Source: (a) U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report; (b) California Dept. of Finance, Controlled Population Estimates for 1-1-88 The accepted standard for major rehabilitation needs is after 30 years. In 1988, only 7 percent of Huntington Beach's housing stock was over 30 years old. However in ten years, nearly half (48.1%) of the City's housing stock will be over 30 years old. This would indicate the potential need for rehabilitation and continued maintenance of approximately 35,000 dwelling units by the year 2000. Housing Assistance Plan The City's Housing Assistance Plan (HAP) prepared in 1988 Mntified the number of housing units in Huntington Beach in substandard condition, as presented in Table 17. The overall quality of the City's housing stock is relatively high, with only a small percentage of units needing replacement or rehabilitation. Of the City's 1988 housing stock, only (a) The City uses the definition of substandard as established in the Uniform Building Code and is generally interpreted to mean a dysfunction or failure of any one major building system (e.g. roof, plumbing, electrical , or heating) . The City also uses HUD Housing Quality Standards to determine substandard conditions when the UBC is not specific in certain areas. B 4-5 J 2.3% (1 ,633 dwelling units) were classified as substandard. Of the identified properties, approximately 48 percent are owner-occupied (785 units) , and 52 percent are renter-occupied (848 units) . The HAP identifies 64 percent (1 ,047 units) of the City's substandard units as suitable for rehabilitation where necessary repairs are considered economically feasible; 546 of these units suitable for rehabilitation are owner-occupied, and 501 are renter-occupied. TABLE 17 CITY OF HUNTINGTON BEACH HOUSING STOCK CONDITIONS: 1988-1991 of Substandard Units Substandard Total Suitable for Rehabilitation Units Units(a) Total Low Income Owner 785 1 .9% 546 142 Renter 848 3.0% 501 213 TOTALS: 1,633 2.3% 1,047 355 (a) Based on 70, 179 total housing units as of January 1,1988, and the owner renter mix provided in the HAP. Source: City of Huntington Beach Housing Assistance Plan, 1988-1991 Community and Neighborhood Enhancement Areas The City has targeted seven neighborhoods characterized by high levels of housing deterioration for rehabilitation assistance. These neighborhoods consist of the Washington, Oakview, Liberty, Commodore, South Shores, Oldtown and Townlot communities, as identified in Figure 6. Through its Community and Neighborhood Enhancement Program, the City offers low interest rehabilitation loans as an incentive for unit upgrading, and in addition provides needed public improvements to the neighborhoods. The following discussion provides an overview of the housing characteristics in each of these areas, and a summary of previous and current housing rehabilitation efforts. B4-6 BF 9 CO ♦�� cy i oy!! 11i�� i♦�� i i 1 ♦♦ ♦♦1 • • ♦♦♦ '♦• i♦ 1 ♦♦i �J`' e4 i i 1 •1♦ ♦ ♦ P� • OEM • ■ yL F" Oakview Redevelopment Area Washington Enhancement Project • 'y South Shore Enhancement Project Liberty Enhancement _ Area `• �s� ��F • J� t- .Nieadowlark A;,Port Commodore Enhancement Project , ♦♦ wr'♦.................. ■.. ♦•' V��t\� • Huntl. ton 2rbo�, O town Enhancement Project i B o l s a C h i t a Generating • ♦ , Sea C", plant p,�CtFK • 1 Country Club �J* yam. ■ ♦ Preserve ♦ _. � i♦ ♦i � i P`vc •;;;;.--•...,��------- ' .•' Townlot Enhancement Project P A C F I C O C E A N /- 0 3636 IC5 K North stele In leet FIGURE 6 COMMUNITY AND NEIGHBORHOOD ENHANCEMENT AREAS 1. Washington Enhancement Project Housing Mix: Unit Type Number of Units Single-Family 16 Duplex 4 Tri -Plex - Four-Plex._ 4 5-9 Units 10 10+ Units - Total 34 Age of Units: 40-50 years old History and Current Status of Area: The Washington Enhancement Project Area was created during the early 1980s. Rehabilitation efforts were sparked by a series of modest public improvements to streets and sidewalks which motivated local property owners to renovate their homes and yards without further City involvement. While the City has offered low interest loans to aid homeowners in the rehabilitation of their property, only two loan applications have been received, and they were subsequently withdrawn. All residential improvements in this area have been initiated through private funds. Public improvements to the Washington Enhancement Area were successfully completed in 1984. Low interest rehabilitation loans will continue to be offered to homeowners. 2. Liberty Enhancement Project Area Housing Mix: Unit Type Number of Units Single-Family 42 Duplex 38 Tri -Plex 17 Four-Plex 44 5-9 Units 19 10+ Units - Total 160 Age of Units: 30-35 years old B4-8 History and Current Status of Area: The Liberty Enhancement Project Area began in the mid 1980s. During the previous years, the area received public improvements to the existing streets and sidewalks. The City also issued three loans for private rehabilitation efforts. Currently, there is moderate renovation activity in the area. Three more loans have been granted by the City to privately rehabilitate a total of 10 units. Also, Liberty area residents recently abandoned and filled in the Carey Water Tract Well because of water contamination. All area residents are now hooked up to the City water system. This transition from well water to City water was financed through CDBG funds and coordinated through the Economic Development Department. Overall , rehabilitation efforts in the area have been successful based on a mix of public and private funding. The City expects completion of public improvements to the Liberty Enhancement Area within the next 1-2 years. 3. Commodore Enhancement Project Area Housing Mix• Unit Type Number of Units Single-Family - Duplex - Tri-Plex - Four-Plex 80 5-9 Units - 10+ Units - Total 80 Age of Units: 26 years old History and Current Status of Area: Before rehabilitation began in 1986, Commodore Circle was one of the most blighted areas in Huntington Beach. Since then, the City has played a major role in its rehabilitation. Thus far, the City has granted loans for rehabilitation to 19 of the 20 apartment buildings in the area. The City has also provided Commodore Circle with a repaved street and alleyway, new blockwalls, a new street lighting system, and improvements to the area's sidewalks. Overcrowding was another concern in Commodore Circle, with several housing units occupied by two and three families. In an attempt to reduce unit overcrowding, qualified tenants were offered Section 8 housing subsidies to relocate to units in other parts of the City. B 4-9 Rehabilitation efforts in Commodore Circle are still in progress. Although rehabilitation activities are not yet complete, the efforts have dramatically improved the appearance and quality of housing in Commodore Circle for area residents. Also, a recreation lot development as neighborhood recreation area will be .completed by 1990. 4. Townlot Enhancement Project Area Housing Mix: Unit Type Number of Units Single-Family 979 Duplex 468 Tri-Plex 160 Four-Plex 614 5-9 Units 608 10+ Units 379 Total 3,208 Age of Units: 70 years to current construction History of Currrent Status of Area: The units in the Townlot Redevelopment Area were originally constructed in the 1920s and 1930s. As the City grew and public and private interest focused on new development, this area became neglected and began deteriorating. It was not until the early 1970s that a City-initiated rehabilitation effort was made. The City offered low interest loans to property owners to improve their property. While the City has offered low interest loans for property improvements, most of the redevelopment efforts are now privately funded. Rehabilitation efforts are continuing in the Townlot area. As in the past, the City continues to provide low interest loans for rehabilitation efforts in the area. The City has also made several public improvements throughout the Townlot area such as improvements and repairs to existing roads. The City has also made an effort to widen every alleyway to 20 feet. Recent increases in land. values and new home sales prices has stimulated privately-financed rehabilitation in this area. B 4-10 5. South Shore Enhancement Area Housing Mix: Unit Type Number of Units Single-Family 636 Duplex - Tri -Plex - Four-Plex - 5-9 Units - 10+ Units - Total 636 Age of Units: 25 years old History and Current Status of Area: The South Shore Enhancement Area, originally a H.U.D. development, has remained an active rehabilitation area since its establishment as a rehabilitation target area during the 1980s. Both public and private funding have contributed to the rehabilitation effort. The City has granted more than 50 low interest loans to property owners wishing to rehabilitate their property. Recent increases in property values have stimulated privately-financed property upgrades and home improvement projects. Overall , the South Shore enhancement project has been a success. However, despite City encouragement through rehabilitation subsidy, there is still a small percentage of property owners who have not made a concerted effort to rehabilitate their property. 6. Oakview Redevelopment Project Area Housing Mix: Unit Type Number of Units Single-Family 33 Duplex 47 - Tri -Plex 18 Four-Plex 390 5-9 Units 158 10+ Units - Total 646 Age of Units: 25-30 years old B4-11 History and Current Status of Area: The Oakview Redevelopment Project Area was formed in 1982 and has stimulated substantial rehabilitation of the area. Public improvements include new landscaping, retaining walls, sidewalks, street lighting, street alignments and alleyway improvements. Through City efforts, the Koledo Lane Demonstration Project was implemented to rehabilitate 16 4-plex units to meet HUD Section 8 standards. The project featured conversion of a vacated street into a community park as well as replacement of existing carports by enclosed garages. Property owners of these new garages were allowed to construct a fifth unit over the new garages. The City has also granted approximately 15 low interest loans for improving 58 existing units. Jacquelyn Lane Projects, currently under construction, will provide new public improvements to expand on the Koledo Lane Demonstration Project. These improvements include modifications to landscaping and open space. Most of the rehabilitation efforts in this area to date have been focused on the southern half of the Oakview area, which abuts Slater Avenue. However, according to the five-year project plan for Oakview, the focus of redevelopment will soon shift to northern Oakview. In 1990, many of the same types of public improvements and general renovations which are occurring in the southern Oakview area are scheduled for the northern Oakview area. 7. Oldtown Enhancement Project Area Housing Mix: Unit Type Number of Units Single-Family 758 Duplex 274 Tri-Plex 284 Four-Plex 225 5-9 Units 260 10+ Units 207 Total 2,008 Age of Units• 70 years to current construction History and Current Status of Area: Like the Townlot area, housing units in the Oldtown area were constructed in the 1920s and 1930s and experienced the same neglect which led to the deterioration of the area. Neighborhood Enhancement has brought about substantial housing rehabilitation to the area. B4-12 4.4 Housing Costs Ownership Housing In 1980, the median home value in Huntington Beach was $116,900. As illustrated in Table 18, for-sale housing in Huntington Beach was nearly 10 percent higher than the County median. The median home value of the majority of surrounding jurisdictions fell below the County median. In comparison to the adjacent jurisdictions, only the median home value in the Cities of Fountain Valley and Newport Beach exceeded Huntington Beach's for-sale housing value. TABLE 18 HOUSING VALUES: HUNTINGTON BEACH AND SURROUNDING AREAS 1980 Median Owner-Occupied Jurisdiction Housing Value Anaheim $92,300 Costa Mesa $106,000 Fountain Valley $122,300 Huntington Beach $116,900 Newport Beach $200,000+ Santa Ana $80,000 Westminster $95,000 Orange County $106,800 Source: Dept. of Commerce, Bureau of the Census, 1980 Census Report HOUSING VALUES: HUNTINGTON BEACH AND SURROUNDING AREAS 1980 $200,000 d _ Y c $100,000 M . 3 f .•1 I f i•,•,,::,:::::. f s 1 $ 0 Anaheim Costa Fountain Hntngtn Newport Santa Mtrnstr. Oren geCo. Mesa VWIey Beach Beach Ana B 4-13 Single-Family Housing In order to obtain up-to-date information on current housing value in Huntington Beach, statistics have been compiled on the sales prices of all single-family homes sold in the City in 1988. Sales activity was high during this period, with nearly 2,900 residences sold. Tabulations of sales information have been produced for both the City as a whole and for its four subareas, and are presented in Tables 19 to 23. Table 19 illustrates a dramatic 90 percent increase between 1980 and 1988 in the median sales price of single-family homes. Median selling prices ranged from $165,000 for a one-bedroom house to $275,000 for a house with 5+ bedrooms. While median sales prices would indicate a relatively narrow price range for single-family homes, a significant number of homes were available at both the lower and upper end of the price ranges. At the low end of the sales range, more than 200 homes sold for less than $150,000' At the other extreme, approximately 150 expensive, luxury homes sold for prices in excess of $500,000, with ten of these homes commanding prices of more than $1 ,000,000. Median home size ranged from just over 600 square feet for a one-bedroom dwelling to nearly 2,500 square feet for a dwelling with 5+ bedrooms, indicating a range in unit sizes available to meet the needs of Huntington Beach's diverse households. TABLE 19 CITY OF HUNTINGTON BEACH SINGLE-FAMILY RESIDENTIAL SALES: 1988 Number of Number Home Prices Bedrooms Sold Median Average Range 1 24 $165,000 $166,675 $63,000 - $365,000 2 276 $188,500 $219,171 $71 ,500 - $875,000 3 1,253 $199,900 $229, 158 $63,000 - $1,325,000 4 1, 143 $255,000 $292,405 $73,500 - $2,400,000 5+ 189 $275,000 $344,780 $159,000 - $1 ,000,000 Totals 2,885 $222,000 $260,315 $63,000 - $2,400,000 Number of Square Footage Bedrooms Median Average Range 1 615 738 441 - 1,952 2 1,224 1,396 527 - 3,012 3 1,392 1,561 928 - 5,252 4 1,918 2,038 984 - 7,640 5+ 2,490 2,572 1 ,222 - 5, 105 Totals 1,630 1 ,793 441 - 7,640 Source: California Market Data Cooperatives, Inc. , Single-Family Residential Sales Data Quarterly Reports for 3/88 - 12/88. Compiled by Cotton/Beland/Associates., Inc. B 4-14 The following sections discuss the characteristics of single-family sales in each of the four subareas in the City. Figure 7 depicts level of single-family sales activity, as well as unit sales prices in each of the four subareas in the City. DOWNTOWN/OLD TOWN: Homes sold in Downtown/Old Town comprised 19 percent of all sales in Huntington Beach in 1988. Homes ranged in value from a median of $185,000 for a one-bedroom dwelling to $535,250 for a dwelling with 5+ bedrooms, representing the widest price range in the City. The median selling price for a single-family home in this subarea is $260,500, substantially higher than the City-wide median of $222,000. The large median home size of 1,885 square feet lends further evidence homes sold in the Downtown/Old Town area are generally larger and more expensive than in most other areas of Huntington Beach. TABLE 20 CITY OF HUNTINGTON BEACH SINGLE-FAMILY RESIDENTIAL SALES: DOWNTOWN/OLD TOWN Number of Number Home Prices Bedrooms Sold Median Average Range 1 16 $185,000 $202,250 $70,500 - $365,000 2 118 $267,500 $260,136 $127,600 - $469,500 3 269 $245,000 $270,748 $129,900 - $712,400 4 ill $275,000 $333,567 $122,000 - $969,500 5+ 36 $535,250 $543,575 $229,000 - $995,500 Totals 550 $260,500 $297,418 $70,500 - $995,500 Number of Square Footage Bedrooms Median Average Range 1 726 816 441 - 1,952 2 1,561 1,624 628 - 2,727 3 1,794 1,842 960 - 3,543 4 2,151 2,309 1 ,207 - 4,196 5+ 3,752 2,506 1,885 - 5, 105 Totals 1,885 1,969 441 - 5, 105 Source: California Market Data Cooperatives, Inc. , Single-Family Residential Sales Data Quarterly Reports for 3/88 - 12/88. Compiled by Cotton/Beland/Associates, Inc. B4-15 e F 9 CITY WIDE TOTALS Aorr `v�o /%\✓.•\ ..'\\ �:,j/��' No. Sold: 2,885 ••u' ✓•' '`•.# Median Sales: $222,000 is No. Sold: 925 a \, Median Sales:$193,900 NORTH / •'\ �\ ,� CENTRAL •���.\ �, \��f P � �0�/ �\ '•." 44� ELF •\ \,\ %DOWN-' � � • \ �\ j TOWN/ # Meadowlark \ ,\ OLD- ,\\ SOUTHEAST \ Airport /^\ TOWN 1 .° \>- \, No. Sold: 944 60LSA CHICA •y \\ Median Sales: $220,000 /.# No. Sold: 466 j..... •:;.� PPt,��° No. Sold: 550 %\ "Harbour Median Sales:$335 000 eY Median Sales: $260 500 �\ • � ♦ � Edison Company � I: ♦♦♦ 8 o I s a C h i C a �\ Generating�e K: ♦ Sea Cli(I Plant PAGE Country Club • J. Preserve \ _ t— / • r. ...•...r .�.. s.. .rrr ................ :�♦ WAY �-�- ..rr■M.• - --r-`- COAST -- ---_ ---- P A C F I C O C E A N 0 3636 North scale In lest FIGURE 7 MEDIAN SINGLE FAMILY RESIDENTIAL SALES PRICES:1988 HARBOR/BOLSA CHICA: Although the Harbor/Bolsa Chica neighborhood comprised the smallest portion (16%) of single-family homes sold during the time period, it was the location of the most expensive single-family home sales in Huntington Beach. With a median sales price of $335,000, this area exceeded the median sales price of the City by $113,000. All ten of Huntington Beach's one million dollar-plus homes sold in 1988 were located in the Harbor/Bolsa Chica subarea. Sales ranged from a median of $250,000 for a one-bedroom home to $475,000 for a home with 5+ bedrooms. With a median home size of 2,099 square feet, unit sizes in the Harbor/Bolsa Chica neighborhood were significantly larger than in other parts of the City. TABLE 21 CITY OF HUNTINGTON BEACH SINGLE-FAMILY RESIDENTIAL SALES: HARBOR/BOLSA CHICA Number of Number Home Prices Bedrooms Sold Median Average Range 1 1 $250,000 $250,000 $250,000 - $250,000 2 47 $225,000 $273,874 $97,000 - $875,000 3 152 $241,000 $333,522 $108,500 - $1 ,325,000 4 249 $375,000 $434,469 $176,000 - $2,400,000 5+ 17 $475,000 $552,441 $225,000 - $1,000,000 Totals 466 $335,000 $389,253 $97,000 - $2,400,000 Number of Square Footage Bedrooms Median Average Range 1 482 482 482 - 482 2 1,547 1 ,460 527 - 3,012 3 1,808 1,859 1,031 - 5,252 4 2,423 2,455 1,268 - 7,640 5+ 3,261 3,264 2,235 - 4,897 Totals 2,099 2, 186 482 - 7,640 Source: California Market Data Cooperatives, Inc. , Single-Family Residential Sales Data Quarterly Reports for 3/88 - 12/88. Compiled by Cotton/Beland/Associates, Inc. B 4-17 NORTH CENTRAL: North Central Huntington Beach was the location for 32 percent of all homes sold in 1988. This area exhibits the lowest median sales price in the City, $193,900, and the smallest range in selling prices, ranging from a median of $154,900 for a two-bedroom unit to $255,000 for a unit with 5+ bedrooms. This area also contains the smallest sized homes, with a median home size of 1,392 square feet, along with the smallest range in median home sizes. This data indicates a fairly homogeneous, lower-priced housing stock in North Central Huntington Beach. TABLE 22 CITY OF HUNTINGTON BEACH SINGLE-FAMILY RESIDENTIAL SALES: NORTH CENTRAL Number of Number Home Prices Bedrooms Sold Median Average Range 1 0 $0 $0 $0 - $0 2 26 $154,900 $168, 100 $90,000 - $375,000 3 462 $185,000 $193,858 $63,000 - $435,000 4 392 $200,000 $218,214 $107,500 - $395,000 5+ 45 $225,000 $259,951 $178,000 - $490,000 Totals 925 $193,900 $206,671 $63,000 - $490,000 Number of Square Footage Bedrooms Median Average Range 1 0 0 0 - 0 2 1,100 1,220 782 - 2,229 3 1,285 1,369 928 - 2,229 4 1,493 1,707 1, 134 - 7,274 5+ 1,910 2,120 1,222 - 3, 151 Totals 1,392 1,544 782 - 7,274 Source: California Market Data Cooperatives, Inc. , Single-Family Residential Sales Data Quarterly Reports for 3/88 - 12/88. Compiled by Cotton/Beland/Associates, Inc. B 4-18 SOUTHEAST: Units sold in Southeast Huntington Beach comprised 33 percent of all single-family home sales in 1988. Of all four neighborhoods, the Southeast most closely mirrors the City-wide totals. Selling prices ranged from a median of $75,000 for a one-bedroom unit to $269,500 for a dwelling with 5+ bedrooms. Median homes sizes ranged from 615 square feet for a one- bedroom unit to 2,275 square feet for a dwelling with 5+ bedrooms. Overall sales prices in the area were slightly lower than those City-wide, as were the size of units sold. This data indicates that 'Southeast Huntington Beach on average provides smaller, yet more affordable units for homebuyers. TABLE 23 CITY OF HUNTINGTON BEACH SINGLE-FAMILY RESIDENTIAL SALES: SOUTHEAST Number of Number Home Prices Bedrooms Sold Median Average Range 1 7 $75,000 $73,457 $63,000 - $78,700 2 85 $153,000 $147,676 $71,500 - $281,500 3 370 $199,500 $200, 126 $84,500 - $555,000 4 391 $258,000 $264,063 $73,500 - $870,000 5+ 91 $269,500 $269,291 $159,000 - $400,000 Totals 944 $220,000 $227,614 $63,000 - $870,000 Number of Square Footage Bedrooms Median Average Range 1 615 569 570 - 615 2 1,010 1,097 873 - 2,239 3 1,355 1,473 961 - 3,264 4 1,958 2,028 984 - 3,370 5+ 2,275 2,297 1 ,740 - 3,055 Totals 1 ,624 1,742 570 - 3,370 Source: California Market Data Cooperatives, Inc. , Single-Family Residential Sales Data Quarterly Reports for 3/88 - 12/88. Compiled by Cotton/Beland/Associates, Inc. B 4-19 Condominium Units In addition to single-family detached homes, the 13,000 condominium units in Huntington Beach offer an alternative option for home ownership. As illustrated in Table 24, 825 condominiums were sold in the City in 1988. These units represent 22% of the total 3,710 ownership housing units sold in Huntington Beach during this time period. Two and three bedroom units comprised the majority of available condominiums, accounting for nearly 85% of the units sold. Sales prices ranged from a median of $116,500 for a one-bedroom unit, to a median of $272,000 for a unit with 4+ bedrooms. In contrast to single-family home prices, condominium sales prices were on average $32,000 - $50,000 less expensive for one- to three-bedroom units, and $88,000 less expensive for four-bedroom units. The City's housing stock of condominiums thus provides a more affordable home-ownership alternative to single-family homes, permitting a greater number of households to afford the option of home purchase. The smaller unit sizes of condominiums are well -suited to the City' s small 1-3 person households TABLE 24 CITY OF HUNTINGTON BEACH CONDOMINIUM SALES ACTIVITY: 1988 Number of Home Prices Bedrooms Number Sold Median Average Range 1 100 $116,500 $116,373 $50,000 - $390,000 2 489 $161,900 $174,920 $74,000 - $930,000 3 202 $179,950 $196,251 $80,000 - $975,000 4+ 34 $272,000 $256,776 $95,000 - $840,000 Totals 825 $158,000 $176,402 $50,000 - $975,000 Number of Square Footage Bedrooms Median Average Range Y 1 776 798 471 - 2,750 2 1 , 194 1 ,277 513 - 2,543 3 1,414 1,510 921 - 2,750 4+ 2,083 2,071 1 ,245 - 3,260 Totals 1,307 1 ,307 471 - 3,260 Source: California Market Data Cooperative, Inc. Condominium Sales Data Quarterly Reports for 3/88-12/88. Compiled by Cotton/Beland/Associates, Inc. B 4-20 !i The level of condominium activity, as well as unit sales prices, varies among geographic areas in Huntington Beach, as depicted in Figure 8. The following sections discuss the characteristics of condominium sales in each of the four subareas in the City. DOWNTOWN/OLD TOWN: In 1988, the Downtown/Old Town subarea accounted for the greatest number of condominium sales in the City, comprising 39 percent of all units sold. With a median -sales price of $175,000, this area had the most expensive condominium sales in the City. Sales prices ranged from a median of $116,000 for a one-bedroom dwelling to $284,500 for a 4+ bedroom dwelling. As could be expected, unit sizes were also significantly larger in the Downtown/Old Town subarea than in other parts of the City. TABLE 25 CITY OF HUNTINGTON BEACH CONDOMINIUM SALES: DOWNTOWN/OLD TOWN Number of Home Prices Bedrooms Number Sold Median Average Range 1 42 $116,000 $113,043 $50,000 - $175,000 2 203 $170,000 $183,252 $74,000 - $372,500 3 67 $197,900 $206,763 $124,600 - $369,900 4+ 10 $284,500 $269,070 $169,900 - $294,900 Totals 322 $175,000 $181,651 $50,000 - $369,900 Number of Square Footage Bedrooms Median Average Range 1 776 772 536 - 970 2 1,206 1,333 736 2,209 3 1,579 1,653 1, 112 - 2,690 4+ 2,535 2,447 2,070 - 2,559 Totals 1,235 1,361 536 - 2,690 Source: California Market Data Cooperative, Inc. Condominium Sales Data Quarterly Reports for 3/88-12/88. Compiled by Cotton/Beland/Associates, Inc. B4-21 6F /"• CITY-WIDE TOTALS c,`�/•��,'� .,'\ •, ,�' No Sold: 825 • •�/.• \/. •��.�• j Median Sales: $158,000 No. Sold: 95 r: 'F Median Sales: $127,900 •�. r` I� 1GF 6O • \ / ♦\♦ .I, b NORTH % ••:• / • \ CENTRAL \ / No. Sold: 191 D/OWN-, Median Sales: $144,000 ,\ OWN/ �. Meadowlark `\ \ OLD- SOUTHEAST ♦�.\ Airport TOWN \ ` S ,•/ HARBOR/\ / \ ,�` \ °°J ♦�, � No. Sold: 217,..a � �r ` ti ♦, Huntington .) r Harbour ,Median Sales: $155;000 •< ♦I� B o l s a C h i c a Edison Company :\•,• .. Cenerating . Sea Cliff �\\ PAC J: t r e s e r v e •• Country Club " °A �r- ....;.... •° N Sold: 322 \ •• 01 ... o. — --- --- — --- • .............. Median Sales: $175,000. HI, AY . , P A C F 1 C O C E A N p 3636 K North. .c.l.ln,— FIGURE 8 MEDIAN CONDOMINIUM SALES PRICES:1988 HARBOR/BOLSA CHICA: The Harbor/Bolsa Chica subarea was the location for 26% of all condominiums sold. Just as with single-family home sales, this area contained some of the most expensive condominium units in the City, with 15 condominiums selling for prices in excess of $450,000. Sales prices ranged from a median of $120,000 for a one-bedroom unit to $363,000 for a dwelling with 4+ bedrooms. Although unit sizes on average were not the largest in the City, the Harbor/Bolsa Chica neighborhood offered condominium buyers the widest choice in unit size, ranging from 471 square feet for a one-bedroom dwelling to 3,260 square feet for a four-bedroom dwelling. TABLE 26 CITY OF HUNTINGTON BEACH CONDOMINIUM SALES: HARBOR/BOLSA CHICA Number of Home Prices Bedrooms Number Sold Median Average Range 1 39 $120,000 $126,744 $73,500 - $284,000 2 117 $169,000 $201,780 $86,000 - $930,000 3 53 $235,900 $262,594 $103,000 - $975,000 4+ 8 $363,500 $335,040 $68,400 - $840,000 Totals 217 $155,000 $210,377 $68,400 - $975,000 Number of Square Footage Bedrooms Median Average Range 1 756 819 471 - 2,750 2 1,257 1,305 513 - 2,543 3 1,543 1,622 1,921 - 2,750 4+ 2,971 2, 148 1,895 - 3,260 Totals 1,270 1 ,326 471 - 3,260 Source: California Market Data Cooperative, Inc. Condominium Sales Data Quarterly Reports for 3/88-12/88. Compiled by Cotton/Beland/Associates, Inc. B4-23 h NORTH CENTRAL: Condominiums sold in North Central Huntington Beach comprised the smallest portion (11 .5%) of units sold in 1988. Of the 95 units sold, 86% were either two- or three-bedroom units. This area exhibits the lowest median sales price in the City, $175,000,' as well as the lowest average, $138,07.4. The North Central neighborhood also contains the smallest sized condominiums with an average unit size of 1,113 square feet. TABLE 27 CITY OF HUNTINGTON BEACH CONDOMINIUM SALES: NORTH CENTRAL Number of Home Prices Bedrooms Number Sold Median Average Range 1 12 $94,500 $106,392 $65,000 - $225,000 2 62 $128,000 $135,934 $87,000 - $390,000 3 20 $129,500 $161,120 $102,000 - $390,000 4+ 1 $190,000 $190,000 $190,000 - $190,000 Totals 95 $127,900 $138,074 $65,000 - $390,000 Number of Square Footage Bedrooms Median Average Range 1 794 846 712 - 1,184 2 1,995 1,071 752 - 2,591 3 1,227 1,391 1, 134 - 2,441 4+ 2,342 2,342 2,342 - 2,342 Totals 1,059 1, 113 712 - 2,441 Source: California Market Data Cooperative, Inc. Condominium Sales Data Quarterly Reports for 3/88-12/88. Compiled by Cotton/Beland/Associates, Inc. B4-24 i SOUTHEAST: Southeast Huntington Beach was the location for 23.2% of condominiums sold in 1988. Although 90% of the 191 units sold were either two- or three-bedroom units, the Southeast still had the greatest number (15) of condominium dwellings with 4+ bedrooms. Units ranged in price from a median of $94,000 for a one-bedroom dwelling to $154,000 for a two-bedroom dwelling, the smallest price range in the City. Overall median sales prices ($144,000) were slightly lower in this area than those City-wide, as were the size of units sold (1,888 square feet) . This data indicates the the Southeast offers slightly smaller, yet more affordable units, well -suited for the City's smaller households. TABLE 28 CITY OF HUNTINGTON BEACH CONDOMINIUM SALES: SOUTHEAST Number of Home Prices Bedrooms Number Sold Median Average Range 1 7 $94,000 $95,686 $65,000 - $390,000 2 107 $154,900 $152,333 $82,000 - $269,900 3 62 $121,000 $139,269 $80,000 - $265,000 4+ 15 $115,000 $177,780 $95,000 - $330,000 Totals 191 $144,000 $148,015 $65,000 - $390,000 Number of Square Footage Bedrooms Median Average Range 1 786 752 600 - 895 2 1, 150 1,244 790 - 2, 197 3 1,208 1,297 854 - 2,036 4+ 1,282 2,828 2,245 - 2,717 Totals 1,188 1,289 600 - 2,717 Source: California Market Data Cooperative, Inc. Condominium Sales Data Quarterly Reports for 3/88-12/88. Compiled by Cotton/Beland/Associates, Inc. B 4-25 Rental Housing In 1980, median monthly rental costs in Huntington Beach were $363. As presented in Table 29, much like for-sale housing costs, Huntington Beach's rents were higher than those in nearby jurisdictions, with the exception of Fountain Valley ($375) and Newport Beach ($443) . In comparison with Orange County, the City's rents were nearly 10 percent higher. TABLE 29 CITY OF HUNTINGTON BEACH MONTHLY RENTS: HUNTINGTON BEACH AND SURROUNDING AREAS 1980 Median Monthly Jurisdiction Contract Rent Anaheim $305 Costa Mesa $339 Fountain Valley $375 Huntington Beach $363 Newport Beach $443 Santa Ana $307 Westminster $328 Orange County $331 Source: Department of Commerce, Bureau of the Census, 1980 Census Report. MONTHLY RENTS: HUNTINGTON BEACH AND SURROUNDING AREAS 1980 $Soo $400 .r 5 c 30 0 E U h is - 20 0 P 'v S m s Y 8 i r h 3 i<gg t: i $ 0 a e F s $ Q Anaheim Costa Fountain Hntngtn Newport Santa mtmstr. OrangeCo. Mesa Yelley Beach Beach Ana B 4-26 i In order to update information on rental costs in Huntington Beach, data has been compiled from advertised rental units in the Sunday editions of the Orange County Register newspaper between January through December 1988. As presented in Table 30, nearly 60 percent of all units advertised were two bedroom units. Median rents for the 296 units sampled vary from $525 for a studio to a high of $950 for a unit with 3+ bedrooms. TABLE 30 CITY OF HUNTINGTON BEACH MONTHLY RENTAL RATES: 1988 Number of Number of Bedrooms Units Median Average Range Studio 6 $525 $505 $475 - $525 1 67 $630 $675 $525 - $770 2 173 $750 $783 $550 - $1,250 3+ 50 $950 $847 $525 - $1,400 Totals 296 $750 $764 $475 - $1,400 Source: Orange County Register, Sunday Editions: 1/3/88, 4/3/88, 8/7/88, 12/4/88. Compiled by Cotton/Beland/Associates, Inc. In addition to rental unit size, rental rates also differ by geographic location in the City. Figure 9 illustrates median rents for each of the four subareas. Median rents varied from $700 in North Central Huntington Beach to $850 in the Harbor/Bolsa Chica subarea, with median rents in Downtown/Old Town ($725) and Southeast Huntington Beach ($770) falling in between those two extremes. As depicted in Table 31, the majority of the units advertised during the time perod are located in Downtown/Old Town (39%) and North Central Huntington Beach (31%) . Multi-family rental units in Downtown/Old Town present the greatest variety, ranging from beachfront studios to dwellings with three bedrooms. The North Central , Southeast and Harbor/Bolsa Chica areas are comprised primarily of two- and three-bedroom units. The proximity to amenities such as Huntington Harbour and/or the beach in the Southeast and Harbor/Bolsa Chica enable these areas to command higher market rents. B 4-27 df / , SA4 C°lofirtfr •^;�\■+\✓ ��= � CITY-WIDE MEDIAN RENT: $750 E I� FAG 60 ♦♦, • f G ♦ •• NORTH / ♦♦'\ / \' CENTRAL ♦♦'.\ _ •% DOWN-TOWN/ -\ P % jM Meadowlark ,\ OLD- \ SOUTHEAST / .• \ Airport /"\ ,\�\ TOWN j $770 RBOR/% `\ .�'r'� •• /. $850 . • . •■ �\ • i Huntington wr � �♦ OPQ- Pti� � /i• Harbour • �� • I . r� �• ,\ Edison Company 8 O I s d C h i c.a a `\ Generating ® s . Sea Cliff Plants PAC>fK r� P Country Club 10 • reserve .�♦ 1.■" ..ur.�•u.... ...... ............r♦ ' .r.... .. .• ■......q...i COAST ■ -\\_ P A C F I C O C E A N p 3636 (Ch(1 North. -scale In ieel FIGURE 9 MEDIAN RENTAL RATES:1988 r TABLE 31 CITY OF HUNTINGTON BEACH MONTHLY RENTAL RATES BY SUBAREA: 1988 Number of Location Units Median Average Range Downtown/Old Town 116 $725 $739 $475 - $1,200 Harbor/Bolsa Chica 52 $850 $850 $625 - $1,250 North Central 91 $700 $740 $550 - $1,400 Southeast 37 $770 $779 $525 - $1,100 Totals 296 $750 $764 $475 - $1,400 Source: Orange County Register, Sunday Editions: 1/3/88, 4/3/88, 8/7/88, 12/4/88. Compiled by Cotton/Beland/Associates, Inc. 4.5 Share of Region's Housing Needs State law requires jurisdictions to provide for their share of regional housing needs. The Southern California Association of Governments (SCAG) has determined the 1989-1994 needs for the City of Huntington Beach, and has estimated the number of households which the City will be expected to accommodate during this period. Future housing needs reflect the number of new units needed in a jurisdiction based on households which are expected to reside within the jurisdiction (future demand) , plus an adequate supply of vacant housing to assure mobility and new units to replace losses. These needs were forecast by the 1988 Regional Housing Needs Assessment (RHNA) , which considered on a regional and local level : market demand for housing, employment opportunities, availability of suitable sites for public facilities, commuting patterns, type and tenure of housing need, and housing needs of farm workers. According to the model , housing to accommodate 6,228 households would need to be added to the City's June 30, 1989 total households by July 1994 to fulfill the City's share of regional housing needs. Based on the distribution of regional income, this total can be further divided among HUD's four income groups to identify the types of households to be provided for as follows: TABLE 32 CITY OF HUNTINGTON BEACH 1989-1994 HOUSEHOLD NEEDS BY INCOME GROUP Very Low (0-50% County median income 984 (15.8%) Low (50-80% County median income) 1,264 (20.3%) Moderate (80-120% County median income) 1,370 (22.0%) Upper (over 120% County median income) 2,610 (41 .9%) Total Households 6,228 Source: SCAG Regional Housing Needs Assessment, June 1988 (Draft) B4-29 The intent of the future needs allocations by income group is to relieve lower income impaction - the undue concentration of very low and low income households in a jurisdiction. Localities must fully address their existing needs in order for impaction avoidance goals to be achieved in the future period. 4.6 Housing in the Coastal Zone Housing in the coastal zone of Huntington Beach includes some of the newest and most expensive homes in the City as well as areas of very old, deteriorated and substandard housing. In many areas, small summer homes, a legacy of the City's early heyday as a beach resort, adjoin modern apartment units. Similarly, the coastal population ranges from affluent families to young, single apartment dwellers preferring a beach orientation, to senior citizens on fixed incomes in older dwellings or mobile homes. Some neighborhoods are very homogenous; others have several different co-existing uses. Government Code Section 65588(d) requires the City to include in its housing element: 1) a review of the number of housing units approved for construction within the coastal zone after January 1, 1982; 2) the number of housing units for persons and families of low or moderate income provided in new housing developments either within the coastal zone or within three miles of the coastal zone; 3) the number of existing residential dwelling units occupied by persons and families of low or moderate income that have been authorized to be demolished or converted since January 1, 1982 in the coastal zone; and 4) the number of residential dwelling units for persons and families of low or moderate income that have been required for replacement of units. This section will address these requirements. Since January 1, 1982, 73 dwelling units have been authorized to be demolished within the City's coastal zone. No units have been authorized to be converted. Through an active program of affordable housing development, the City has replaced all the units demolished with low/ moderate rental and for sale units developed throughout the City. Table 33 presents a comprehensive list of the affordable housing projects which have been developed either within the City's coastal zone, or within three miles of its boundary, since January 1 , 1982. In addition to the affordable units provided in these projects, 138 units affordable to low and moderate income households have been provided through the City's density bonus program. Since January 1, 1982, the following dwelling units have been constructed in the coastal zone: ° 612 single family homes ° 283 condominium units ° 177 apartment units B4-30 TABLE 33 CITY OF HUNTINGTON BEACH AFFORDABLE HOUSING PROJECTS WITHIN THREE MILES OF COASTAL ZONE Total Number Affordable Project Name of Units Units Location For Purchase: Huntington Bayshore 159 34 Lake and Atlanta Pacific Ranch 558 100 Yorktown and Lake Seabridge 200 160 Adams and Beach Cabo Del Mar 230 188 Warner and Bolsa Chica Harbor Point 102 31 Warner and Sims For Rent: Bond issue for multi-family units. 20% are set-aside at affordable rental rates. Huntington Beach Breakers 342 85 Atlanta and Beach Rivermeadows 152 30 Magnolia and Warner Huntington Village 114 27 Springdale and Edinger (senior units) Seabridge Villas 334 69 Beach and Adams Section 236 loans program for subsidizing sponsors of housing for moderate income, elderly and disabled citizens. Huntington Villa 198 198 16000 Villa Yorba Other Below-Market Rental Projects Emerald Cove (senior 164 164 Talbert and Jolly Source: City of Huntington Beach Department of Economic Development B4-31 i; 5.0 Employment Characteristics The need for housing within a given market area is largely dependent on the local economy and the number and types of jobs available. During the 1960s, Huntington Beach experienced a dramatic increase in new home construction, _ with many of these new homes appealing to households employed in the Los Angeles area. During this period, the Orange County economy began to grow and diversify from a concentration of predominantly industrial employers to include more ancillary and service jobs. Several factors have contributed to limiting the housing opportunities for households with lower incomes. Low density zoning and inflating land values have perpetuated the production of larger luxury homes in Huntington Beach and other neighboring communities. The failure of individual communities to provide a range of housing opportunities to match the regional economy causes longer commutes to work and the concentration of lower income groups in older areas of the County. Employment Projections An assessment of the prospective need for market rate housing must take into consideration the number and type of new jobs created in both the City and County. As presented in Table 34, Huntington Beach's employment base grew by 4,070 jobs between July 1980 and January 1984. During this period, only the Agriculture, Government, and Uncoded sectors of employment showed a decrease in the number of jobs. As this table reveals, the thrust of Huntington Beach's economic activity is in the manufacturing and retail industries. Although these two sectors comprise more than half of the City's employment opportunities, Huntington Beach still maintains a very diversified employment base. During the four year period, the wholesale (42%) , finance/insurance/real estate (23%) , and mining (22%) industries all experienced substantial increases in the number of jobs created within the City. With the continued diversification of the local economy attracting a greater variety of non-skilled, semi-skilled, and professional workers, the City should endeavor to provide a range of housing opportunities and choice. B 5-1 TABLE 34 CITY OF HUNTINGTON BEACH EMPLOYMENT TRENDS: 1980 & 1984 July January % Change Industry 1980 1984 1980-1984 Agriculture 425 349 -17.9% Mining 287 350 22.0% Construction 1,794 1,997 11 .3% Manufacturing 11,860 13,177 11.1% Trans/Pub. Utilities 1,992 2,058 3.3% Retail Trade 10,088 11,444 13.4% Wholesale Trade 1,354 1,923 42.0% Fin/Ins/Real Estate 1,992 2,454 23.2% Services 6,585 7,634 15.9% Government 7,346 6,422 -12.6% Uncoded 24 9 -62.5% TOTAL: 43,747 47,817 9.3% Total County Employment 5.2% 5.2% -- Source: State Employment Development Department Jobs/Housing Balance Another measure of the balance of a community's employment opportunities with the needs of its residents is through a "jobs-housing balance" test. A balanced community would have a match between employment and housing opportunities enabling most residents to also work in the community. SCAG has identified as a goal for the Nor�hwest Orange County subregion an employment to housing ratio of 1.44. a) Comparing the number of jobs in Huntington Beach in 1984 (47,817) to the number of housing units (66,335) indicates a job-housing ratio of .72 for the City. This low ratio would indicate Huntington Beach is housing-rich, and should increase its employment base to attain a more balanced community. However, since the City is located in a job-rich subregion (Northwest Orange County had a job-housing ratio of 1.34 in 1984) which is projected to experience an even greater rate of employment growth through 2010, Huntington Beach's housing-rich characteristic helps achieve the desired jobs/housing balance for the entire Northwest Orange County subregion. (a) Draft Growth Management Plan, Southern California Association of Governments, October 1988, Page VII-11 . B 5-2 6.0 HOUSING CONSTRAINTS Actual or potential constraints on the provision and cost of housing affect the development of new housing and the maintenance of existing units for all income levels. Market, governmental , infrastructural , and environmental constraints to housing development in Huntington Beach are discussed below. 6.1 Market Constraints The high cost of renting or buying adequate housing is the primary ongoing constraint to providing adequate housing in the City of Huntington Beach. High construction costs, labor costs, land costs and market financing constraints are all contributing to .increases in the availability of affordable housing. Construction Costs: The single largest cost associated with building a new house is the cost of building materials, comprising between 40 to 50 percent of the sales price of a home. Overall construction costs rose over 30% percent between 1980 and 1988, with the rising costs of energy a significant contributor. Construction costs for wood frame, single- family construction of average to good quality range from $40 to $55 per square foot, custom homes and units with extra amenities running somewhat higher. Costs for wood frame, multi-family construction average around $42 per square foot, exclusive of parking. A reduction in amenities and quality of building materials (above a minimum acceptability for health, safety, and adequate performance) could result in lower sales prices. Additionally, pre-fabricated, factory built housing may provide for lower priced housing by reducing construction and labor costs. An additional factor related to construction costs is the number of units built at the same time. As the number of units developed increases, construction costs over the entire development are generally reduced based on economies of scale. This reduction in costs is of particular benefit when density bonuses are utilized for the provision of affordable housing. Land: Land costs include the cost of raw land, site improvements, and all costs associated with obtaining government approvals. The limited supply of developable vacant land in Huntington Beach has accounted for a steady increase in raw land costs. Residential land in Huntington Beach cost an average of $6 to $8 per square foot in 1984, whereas land costs in 1989 averaged between $10 and $13 per square foot on parcels with single-family zoning and $20 and $25 per square foot on parcels zoned for multi -family development. It is estimated that these costs contribute 20 to 25 percent to the final sales price of a new home. Left alone, the rapidly escalating market price of land will tend to encourage mainly higher priced development. Higher density zoning could reduce the cost per unit of land, but land zoned for higher densities commands a higher market price. For this reason, density bonuses rather than zoning changes may be the preferred vehicle for reducing land costs. B 6-1 Labor Costs: Labor is the third most expensive component in building a house, constituting an estimated 17% of the cost of building a single-family dwelling. The cost of union labor in the construction trades has increased steadily since April 1974. The cost of non-union labor, however, has not experienced such significant increases. Because of increased construction activity, the demand for skilled labor has increased so drastically that an increasing number of non-union employees are being hired in addition to unionized employees, thereby lessening labor costs. Financing: While interest rates have fallen more than 10 percent from their near 20 percent high in the early 1980s, they still have a substantial impact on housing costs which is felt by renters, purchasers and developers. It should be noted that some mortgage financing is variable rate, which offers an initial lower interest rate than fixed financing. The ability of lending institutions to raise rates to adjust for inflation may cause many existing households to overextend themselves financially, as well as returning to a situation where high financing costs substantially constrain the housing market. An additional obstacle for the first-time home buyer continues to be the 10-20% downpayment required by lending institutions. The median sales price of a single-family home in Huntington Beach (1988) was $222,000. A $199,800 mortgage amortized over 30 years at an interest rate of 10.5% would result in monthly house payments of $1,827. This level of payment eliminates Huntington Beach's very low, low and moderate income households from the for-sale housing market. Condominiums do, however, offer an alternative homeownership opportunity for many of the City's moderate income households. Interest rates are determined by national policies and economic conditions, and there is little that local governments can do to affect these rates. Jurisdictions can, however, offer interest rate write-downs to extend home purchase opportunities to lower income households. In addition, government insured loan programs may be available to reduce mortgage downpayment requirements. Profit, Marketing and Overhead: Developer profits generally comprise 10-15% of the selling price of single-family homes and slighty lower for condominiums. However, in communities like Huntington Beach where the market demand for housing is high in comparison to the available housing supply, and home purchasers often desire more amenities, developers are able to command higher prices and often realize greater margins of profit. Rising marketing and overhead costs have contributed to the rising costs of housing. Inflation has spurred much of the increase in marketing and overhead. Intense competition among developers has necessitated more advertising, more glamorous model homes and more expensive marketing strategies to attract buyers. B 6-2 6.2 Governmental Constraints Housing affordability is affected by factors in both the private and public sectors. Actions by the City can have an impact on the price and availability of housing in the City. Land use controls, site improvement requirements, building codes, fees and other local programs intended to improve the overall quality of housing may serve as a constraint to housing development. Availability of Land The Land Use Element of the General Plan and corresponding zoning provide for a full range of residential types and densities dispersed throughout the City. Densities range from 0-4 units per acre in areas designated for Estate Residential to 35 units per acre in areas designated for High Density Residential . Table 35 presents the amount of acreage allotted to each residential land use category in the City's General Plan. As indicated by this table, over half the City's land area is planned for low density residential use, evidenced by the predominance of detached single-family homes in Huntington Beach. Considerably less acreage is planned for medium and high density uses, which characteristically provide condominium and apartment units. Three acres of land have been designated to accommodate a specific senior residential project. The areas of the City designated for Mixed Development and Planned Community allow for a mixture of residential uses, densities, and housing types. As an older City, much of the land designated for residential development is already built out. In addition, a great deal of the City's vacant land is subject to development constraints related to oil production, flood plain regulations and fragmented ownerships, thereby limiting their development in the near future. Of the City's total 725 vacant residential acres (refer to Section 7.1, Table 39) , only 479 acres can be considered unconstrained and suitable for development within the next five years. Additional residential development in the City will , however, be accommodated through several other means, including development on underutilized residential parcels, on non-residential land, and on surplus school sites. Considering the potential residential development from all these sources, a total of 6,927 additional dwelling units, could be accommodated in Huntington Beach under the current General Plan and zoning (refer to Table 41) . SCAG has estimated a future housing need of 6,222 new units in the City through the year 1994. The Plan thus provides for a residential development capacity which is more than adequate to serve projected future housing demand. The Land Use Plan cannot therefore be interpreted as a constraint to the provision of affordable housing, particularly since 3,676 units are designated for higher density housing (Medium-High and High Density Residential ) , and can be more readily be priced to meet the needs of lower income households. B6-3 TABLE 35 CITY OF HUNTINGTON BEACH RESIDENTIAL DEVELOPMENT CAPACITY OF LAND USE PLAN Total Acreage % of Total Land Use Catagory Permitted Density Designated City Acreage Estate Residential 4 units/gross acre 287 1 .7% Low Density Res. 7 units/gross acre 8,645 50.3% Medium Density Res. 15 units/gross acre 1,968 11 .5% Med-High Density Res. 25 units/gross acre 42 0.2% High Density Resid. 35 units/gross acre 603 3.5% Senior Residential varies 3 .1% Mixed Development varies 95 0.6% Planned Community varies 275 1 .6% TOTAL 11,918 69.5% Source: City of Huntington Beach Planning Department. Fees and Improvements: Various fees and assessments are charged by the City to cover the costs of processing permits and providing services and facilities, such as utilities, schools and infrastructure. Almost all of these fees are assessed through a pro rata share system, based on the magnitude of the project's impact or on the extent of the benefit which will be derived. However, these fees contribute to the cost of housing and may constrain the development of lower priced units. Certain fees could be waived or subsidized by the City for the provision of lower income and senior citizen housing. The majority of the Huntington Beach jurisdiction is highly urbanized with most of its necessary infrastructure, such as streets, electrical and water facilities, already in place. As such, the cost of land improvements is less than in undeveloped suburban or rural areas. Tables 36 and 37 present a comprehensive list of typical development fees associated with 4.5 unit/acre single family development and with a 30 unit/acre multi -family project. Development fees for single family construction are estimated at $10,399 per unit, whereas fees associated with multi-family construction are significantly lower at $4,827 per unit. This price differential reflects the fact that as land use densities increase, the proportion of the cost borne by each unit decreases. The most significant project development fees are school fees, parks and recreation fees, County sanitary sewer fees, and drainage fees. Building Codes and Enforcement: The City of Huntington Beach has adopted the State Uniform Building, Housing, Plumbing, Mechanical and Electrical Codes. These codes are considered to be the minimum necessary to protect the public health, safety and welfare. The local enforcement of these codes does not add significantly to the cost of housing. B6-4 i Local Processing and Permit Procedures: The evaluation and review process required by City procedures contributes to the cost of housing in that holding costs incurred by developers are ultimately manifested in the unit's selling price. The review process in Huntington Beach is governed by two levels of decision-making bodies: the City Council and the Planning Commission. One potential way to reduce housing costs is to reduce the time for processing permits. Table 38 presents a comparison of average development processing times in Huntington Beach with several surrounding communities. As this table illustrates, development processing times in Huntington Beach are at a minimum and compare favorably with other communities. As review times are already streamlined in the City, cost savings from "fast track" processing would be minimal . Nonetheless, as land holding costs can run over $1,000 per unit for a 9 to 12 month period, the City may wish to consider priority development review processing for low and moderate income housing applications. B 6-5 TABLE 36 CITY OF HUNTINGTON BEACH SUMMARY OF DEVELOPMENT FEES FOR TYPICAL LOW DENSITY RESIDENTIAL PROJECT Type of Fee Cost Per Unit Planning/Building Fees Tract Map $ 17.83 Conditional Use Permit 11 .67 Inspection 597.60 Plan Check 388.44 Strong Motion 8.85 Library 250.00 Processing 10.00 School Fee 3,150.00 Parks and Recreation 2,395.00 Electrical Permit 153.44 Mechanical Permit 58.32 Plumbing Permit 107.50 Fence Permit 45.90 Subtotal $ 7,194.55 Public Works Development Fees Sewer - City 150.00 County 1,500.00 Subtotal $ 1,650.00 Water 60.00 Drainage 1,330.00 Grading 30.00 Street Plans 45.00 Parcel Map - Plan Check NA Tract Map - Plan Check 90.00 Subtotal $ 3,205.00 TOTAL $ 10,399.55 Per Unit $ 46,797.98 Per Acre Source: City of Huntington Beach Department of Community Development Calculations based on: (a) 2, 100 square foot living area/400 square foot garage. (b) 4 bedrooms, 30-lot subdivision at 4.5 units/acre. (c) Type V construction. (d) Building valuation = $126,380. B 6-6 TABLE 37 CITY OF HUNTINGTON BEACH SUMMARY OF DEVELOPMENT FEES FOR TYPICAL HIGH DENSITY RESIDENTIAL PROJECT Type of Fee Cost Per Unit Planning/Building Fees Tract Map $ 13.00 Conditional Use Permit 11 .67 Inspection 346.80 Plan Check 225.42 Strong Motion 7.89 Library 130.00 Processing 10.00 School Fee 225.00 Parks and Recreation 1,662.00 Electrical Permit 122.75 Mechanical Permit 46.66 Plumbing Permit 86.00 Fence Permit 8.46 Subtotal $ 2,895.65 Public Works Development Fees Sewer - City 150.00 County 1,500.00 Subtotal $ 1,650.00 Water 60.00 Drainage 200.00 Grading 5.00 Street Plans 7.00 Parcel Map - Plan Check NA Tract Map - Plan Check 10.00 Subtotal $ 1,932.00 TOTAL $ 4,827.65 Per Unit $144,829.50 Per Acre Source: City of Huntington Beach Department of Community Development Calculations based on: (a) 900 square foot living area/400 square foot garage. (b) 2 bedrooms, 1-lot subdivision at 30 units/acre. (c) Type V construction. (d) Building valuation = $52,580. B6-7 TABLE 38 DEVELOPMENT PROCESSING TIME IN HUNTINGTON BEACH AND SURROUNDING COMMUNITIES (in months) Hunt. Costa Newport Orange Beach Mesa Irvine Beach Count General Plan Amendment 4 6-8 8-12 6-8 12-24 Zone Change 1 .75 6-8 6 4-6 3-4 EIRs - 4 1-2 4-6 1 3-4 Tentative Tracts 1.75 6-8 6-12 6-12 1-2 Site Plan Review 1 1-2 3-4 2-3 1-2 (Staff) Site Plan Review 1 .5 1-2 3-4 2-3 1-2 (Comm. ) Plan Checking/ 2 1 1-2 1 Building Permits Source: Huntington Beach Department of Community Development; Cotton/Beland/Associates, Inc. B 6-8 f , 6.3 Environmental and Infrastructure Constraints Portions of Huntington Beach are exposed to a variety of environmental hazards and resources which may constrain the development of lower priced units. In addition, deficiencies exist related to the provision of infrastructure to service new residential development. Floodplain: Situated on a low-lying plain and bounded by the Santa Ana River, Huntington Beach faces significant flood hazard. Over half the City's acreage, and approximately 70-80% of its residentially designated acreage, falls within the Flood Hazard Zone as defined by the Federal Emergency Management Agency (FEMA) . FEMA regulations require that all new residential development be graded up above the 100-year flood elevation which ranges from approximately one to 11 feet in the City. These restrictions on development in the floodplain result in a reduction in the number of units that can be built, increase the costs of construction, and slow down development. Oil Resources: Huntington Beach is historically an oil town. The numerous oil facilities currently operating in the City serve to reduce the amount of land currently available for development. While residential projects can sometimes be developed around producing wells, often development must be postponed until oil production halts and facilities are abandoned-(20 to 30 years) . The presence of oil facilities thus reduces the amount of acreage available for development in the near future and/or increases the cost of development. The City's Redevelopment Agency is currently working with a private oil company in developing an oil consolidation site in downtown Huntington Beach. By consolidating the City's oil wells and storage tanks onto a single site, the City's "oil lots" will be opened up for development. Approximately 90 percent of the City's oil lots have been purchased by the oil company, with the goal of completing the consolidation site within a two year period. In addition to the oil consolidation site, the City is working with property owners to implement measures to mitigate constraints to development on sites with remaining oil facilities. These measures include buffering/screening existing oil islands, abandonment of wells, and creation of Specific Plans. Hazardous Waste: Because of the long history of oil recovery operations in Huntington Beach, some vacant residential properties contain hazardous wastes related to abandoned oil wells, oil pipelines, or potential gas risk. These contaminated sites will require clean up prior to their development, thus adding to the costs of developing on these sites. Public Services and Facilities: As a highly urbanized community, most areas of the City are already served by sewer lines, water lines, streets, storm drains, telephone, electrical and gas lines. However, a major area of vacant land east of the Bolsa Chica designated for Residential Estate B 6-9 has remained undeveloped due to the lack of water and sewer lines and storm drains in the area. To facilitate development in this area, the recently completed Ellis Goldenwest Specific Plan provides for necessary infrastructure improvements to be installed over the next few years. This Specific Plan will also help to alleviate another constraint to development in this area, fragmented land ownership. B 6-10 7.0 HOUSING OPPORTUNITIES 7.1 Availability of Sites for Housing This section evaluates the potential additional residential development which could occur under the City's General Plan and zoning on vacant and underutilized land. Vacant Sites Vacant land planned for residential development is relatively scarce in Huntington Beach. Approximately 725 acres, or six percent, of the City's total 11,918 residential acres are currently vacant. Under existing zoning and general plan designations, these residential acres could support a maximum buildout of 7,587 additional housing units. However, as discussed in the previous section on environmentally constrained lands, much of the City's vacant residential land has been subject to development constraints related to oil production and fragmented ownerships. The City is actively working with property owners to remove these constraints by creating an oil consolidation site, developing specific standards to ensure compatibility between oil islands and residential uses and through implementation of Specific Plans. Through the City's activities, the following four areas which had previously been constrained due to oil production activities will now be available for residential development. These areas are illustrated in Figure 10, and their dwelling unit capacity described below: Area #1: This parcel is approximately 19.69 acres in size and is designated for High Density Residential , permitting up to 35 dwelling units per acre. While the property has been historically utilized for oil production, the few oil wells remaining on the site are in the process of -being removed. The property owner has submitted development plans to the City for 331 attached townhome units on the site. Construction of these units is anticipated to begin in Spring 1990. Area #2: The Redevelopment Agency is currently working with a private oil company in developing an oil consolidation site in downtown Huntington Beach. Existing oil facilities located on the 20.72-acre Area #2 site are to be relocated on the oil consolidation site. Existing High Density Residential zoning on the site would permit the development of approximately 725 multi -family dwelling units on the property. Area #3: This area consists of approximately 47.62 acres designated as Residential Estate Density (2 du/acre) . The site is located in the Holly-Seacliff Master Plan area adjacent the proposed linear park. While the area had previously been identified as constrained by oil production, the Master Plan provides for mitigation of oil constraints, through abandoning some wells and creating "oil islands" with remaining on-site oil facilities. By mitigating restrictions on development, approximately 95 single-family dwelling units will be able to be accommodated on this site. B7-1 bf C0 ,♦ r� raj., fr! i.r ♦♦ 0 �j♦ OrS f 5Gr J �` • _ L4•rl i Jl. YLf p, Lf (, Y� z�fL ♦♦♦ �f YLf ♦♦ • dart ♦♦ a�t� YLf •♦ P � .s�cado.v lark i � Airport � • C • AREA 3 IIIIII ♦ Barbour T,r -PROPERTY • ar.Idison Com i BOLSA CHICA p Sc'r CGII Generating P.sCErC a 4� . ...........•�.... III Cnnr yClub 1`la r ••• �AREA 2 � P - CG•r51 �.�.1 .AREA I .---------- — �f,��/� !A �I ..... A ly II sl.,r, (_C5& K North scale in ICCI I IC U`:1 10 PKI:VIOUSLY CONSTRAINEI)LANDS SUIIABH IOR RLSII)LNIIAI. 1)1VI.LOP7.)INI Area #4: Similar to Area #3, this 38.48 acre site is located in the Holly-Seacliff Master Plan, which provides for mitigation of existing oil constraints. The Master Plan designates this site for an overall average density of seven dwelling units per acre, providing for a total of 269 dwelling units. The City is working with the property owners to encourage a mix of single and multi-family family housing types on this site. Through the City's efforts, 126 acres of land which had previously been constrained by oil production activities will be opened up to development. This residential acreage will provide for an increase in dwelling units, ranging from low density estate housing, to high density apartments and condominiums. Table 39 provides a breakdown of the number and type of additional residential dwelling units which could be constructed in Huntington Beach under the General Plan. Of the City's total 725 vacant residential acres, 478.8 acres can be considered unconstrained and available for development over the five-year period of the Housing Element. This acreage will support a maximum buildout of 4,997 dwelling units, ranging in density from 2 to 35 units per acre. Nearly half (45 percent) of the potential dwelling units are the Medium-High and High Density residential land use categories, providing opportunities for lower cost housing development. Approximately one-quarter of these potential units are designated for Medium Density Residential , indicating a significant proportion of future residential growth will be in the form of duplexes and townhomes and lower density apartments and condominiums. Single-family homes will comprise approximately one-quarter of the City's future residential growth. A recently-adopted Specific Plan for the Ellis Goldenwest area will serve as a vehicle for consolidating land ownerships, providing for approximately 600 residential estate dwelling units. Underdeveloped Sites In addition to development on vacant lands, there is the potential for new residential development on sites which are currently developed at densities lower than those permitted under the General Plan and zoning. In the Townlot, Oldtown and Downtown areas, many of the areas designated for densities of 15 units/acre are currently developed with single-family and lower density multi -family uses. Recycling of these lower density uses occurs when the intensity of use allowed in the zone more than offsets the costs of acquiring the improved site, demolishing the existing units, and constructing new higher density units. For the past several years, substantial recycling activity has been occurring in the Townlot, Oldtown and Downtown areas indicating that permitted densities are high enough to warrant recycling. Interestingly, while City zoning permits densities up to 15 units per acre in these areas, the market demand for single family homes has resulted in the majority of replacement units developed as single-family detached units. Single-family residential uses in the Townlot, Downtown and Oldtown areas are predominately developed on 50' x 115' and 25' x 115' sized lots. The recycling trend in these areas B 7-3 TABLE 39 CITY OF HUNTINGTON BEACH VACANT LANDS SUITABLE FOR RESIDENTIAL DEVELOPMENT: 1989 Total Unconstrained 0 Vacant Potential Vacant Potential Total Land Use Catagory Acreage DUs Acreage DUs DUs Residential Estate 222.0 724 182.6 605 12% (2-4 du/ga) Residential Low Density 98.39 688 86.41 605 12% (7 du/ga) Residential Medium Dens. 159.73 2,407 77.91 1, 169 24% (15 du/ga) Residential Medium-High 17.55 439 17.55 439 9% (25 du/ga) Residential High Density 62.05 2,172 62.05 1,813 36% (35 du/ga) Planned Community 165.28 1, 157 52.28 366 7% (7 du/ga) TOTAL 725.00 7,587 478.8 4,997 100% Source: City of Huntington Beach Community Development Department, January 1989. B 7-4 i has been to demolish the existing single-family structure, and replace the unit with either two or three single-family units. Table 40 illustrates the level of recent recycling activity, with 43 single-family units demolished in these areas in 1988, and 26 in the first six months of 1989. In order to estimate the net increase in residential development attributed to recycling over the five year period of the Housing Element, recycling activity over the past 18 months can be applied to the 1989-1994 period. Replacement units can be conservatively estimated at a ratio of two-to-one, although it is likely many single units will be replaced at a three-to-one ratio. Based on these assumptions, it is estimated that the City will experience an annual recycling of 47 existing units, to be replaced with a total of 94 new units. Applying this annual recycling rate to the five year period of the Housing Element translates to an estimated net increase in 235 single family units which can reasonably be expected to develop during the 7/89 - 6/94 period. It should be mentioned, however, that many of the older residences in these areas are identified as historically significant on a local survey, and their removal would need to be addressed under CEQA. TABLE 40 CITY OF HUNTINGTON BEACH RESIDENTIAL RECYCLING ACTIVITY (OLDTOWN, TOWNLOT, AND DOWNTOWN AREAS) Single-Family Units Recycled to Higher Densities 1988 Jan-June 1989 Oldtown 8 8 Townlot 32 17 Downtown 3 1 Total 43 26 Source: City of Huntington Beach Community Development Department B 7-5 Second Units Intensification of development in existing residential areas could also occur through the addition of "second units" on single-family lots. Second units, or granny flats as they are commonly known, are dwelling units constructed on the same parcel on which the primary single-family unit is located, providing independent living quarters which the homeowner may rent out or provide for a family member or other persons(s) . Second units provide a cost effective means of serving additional development through the use of existing infrastructure, and provide affordable housing for low and moderate income small households. Second units have the additional benefit of allowing many older persons to remain in their homes by providing additional income and security. The City has adopted an ordinance to facilitate and regulate the development of second units. While the ordinance does require a Conditional Use Permit for development of second units, reasonable parking and other requirements have been established so as not to discourage their development. Planning Department records indicate approximately 24 applications for second units have been submitted to the City since 1984, averaging about five applications per year. Using this data to estimate the number of future second unit applications suggests that approximately 25 new applications could be expected over the five year period of the Housing Element. Redevelopment Areas Five redevelopment project areas have been established in Huntington Beach: Huntington Center, Oakview, Talbert-Beach, Yorktown-Lake, and Main-Pier. Activities involving residential use include affordable senior housing, rehabilitation of existing units, residential/commercial mixed-use, and market-rate single family and multi-family development. Within the five year period of the Housing Element, the City is commited to working with the development community to achieve an additional 900+ units in the Main Pier redevelopment project area. These units will be developed on property contained within the following three projects: The Waterfront: Pursuant to the approved Development Agreement for The Waterfront project, a total of 894 high density residential units (35 du/acre) may be constructed north of Walnut Avenue between Beach Boulevard and the northerly property boundary. Approximately half of the units (448) are to be constructed in the first phase, scheduled for completion in 1992, with an additional one-quarter of the units (223) to be constructed in 1994 as Phase 2, thereby totaling 671 units to be developed within the five year time frame of the Housing Element. Pier Colony: This high density condominium project (32 units/acre) located at Pacific Coast Highway and Second Street is scheduled for completion in July 1990. It will consist of 130 one- and two-bedroom condominiums. B7-6 Main Pier Phase II: This mixed-use project located at Pacific Coast Highway and Sixth Street is currently in the planning stages. At this time, 103 medium-high density units (25 units/acre) are proposed, with a scheduled completion date of June 1991. Non-Residential Land In addition to land which is currently designated for residential development, the City is in the process of redesignating a non-residential parcel to accommodate residential land uses. City Council and Coastal Commission have ammended the General Plan to redesignate the 40-acre Ascon property from Public, Quasi-Public, Institutional to Residential Medium Density. (The site's general location is identified on Figure 10) . The conceptual plan approved for this property provides for a total of 600 dwelling units at an average density of 15 du/acre. The Ascon site has historically been utilized as a landfill , and will require site clean-up to remove contaminated soil . The applicant is in the process of preparing a remediation plan for soil clean-up, with site clean-up estimated to be complete within the next two years. Residential development on the site will immediately follow site clean-up, and can be expected to be completed by the end of 1992. Surplus Land Two former school sites are presently either under construction or in the entitlement stage for residential development in Huntington Beach. Crestmore Estates is a 52-unit low density single-family project which is now under construction. Heritage Village is a mixed development project which is still in the entitlement stage. It is a 15.2 acre, 520 unit residential/commercial project which is proposed at a density of 34 units per acre. The zoning will be a Specific Plan. In addition to these school sites, four other residentially-zoned school sites are being proposed for residential development by the school districts. Huntington Beach Elementary District has proposed 9.75 acres for residential on its Lebard School site, and Fountain Valley School District has advertised for bids on its 9. 10 acre Bushard School site. These two sites are both zoned R-1/7du/acre, providing for the development of 132 dwelling units. Two other surplus school sites, Golden West College (6.81 acres) and Wintersburg High School (14 acres) , have been advertised for bids by the school districts. These sites are zoned single-family residential and residential -agriculture respectively, and could accommodate a total of 62 dwelling units. However, development under this twenty year old base zoning would be incompatible given the location of these sites along major arterials and surrounding higher densities. These sites will likely be rezoned to accommodate higher density residential development consistent with their setting. B 7-7 Bolsa Chica The Bolsa Chica area is another very significant housing opportunity for the City. The City has initiated annexation procedures for the 1,635 acre vacant area known as the Bolsa Chica. While nearly two-thirds of the Bolsa Chica is comprised of a State Ecological Reserve and wetland, the remaining 400-plus acres located immediately adjacent exiting residential neighborhoods, are planned for residential development. The Bolsa Chica is located within the City's sphere of influence and is surrounded on all three sides by the City of Huntington Beach (refer to Figure 11) . At the meeting of October 2, 1989, the City Council selected an outside law firm to assist the City in preparation of a development/pre-annexation agreement for the Bolsa Chica area. In addition, a memorandum of understanding on the Bolsa Chica Environmental Impact Statement (EIS) was approved by Council at their meeting of October 16, 1989. Property owners in the Bolsa Chica area include Signal Landmark Inc. , State Lands Commission, the Metropolitan Water District, Ocean View School District, Donald Goodell , the Fieldstone Company, and the Huntington Beach Company; all have been supportive of annexation to the City. The anticipated time frame for annexation includes completion of the Final EIS by Fall 1991, with annexation to occur in early 1992. Development is expected to occur within 3 years and will include a minimum of 4,200 and a maximum of 5,700 residential units. A coalition representing five interest groups (Orange County, State Lands, property owner Signal Landmark, Inc. , a citizens interest group Amigos de Bolsa Chica, and the City) is meeting to assist in the determination of the number of residential units; Figure 11 provides a conceptual plan of development in the Bolsa Chica as proposed by the coalition. The actual number of units is uncertain at this time and will be determined based upon an ongoing traffic study, availability of sewer and water, and additional parameters to be discussed in the EIR. City services appear adequate to serve the project development and the City is participating in the Bolsa Chica traffic modeling project to insure that circulation concerns are addressed. Availability of Public Services and Facilities As a highly urbanized community, public facilities are available to facilitate development throughout Huntington Beach. All of the land designated for residential use in the Low Density, Medium Density, Medium-High Density and High Density categories is presently served by sewer lines, water lines, streets, storm drains, telephone, electrical and gas lines. While areas designated for Residential Estate are not currently served by sewer and water lines and storm drains, the Ellis Goldenwest Specific Plan provides for necessary improvements to be installed over the next few years. This Specific Plan will also help to alleviate another constraint to development in this area, fragmented land ownership. 87-8 REciDENTIAL DENSITIES l- I UP TO 6.5 DU/AC I J UP TO 12.5 DU/AC " LINEAR ram,. UP TO 18.0 DU/AC �'• - I \ I . PARK / M • r ®-, ESHA I•' ;:'' :.t:: _ WETLANDS _ HA f - ES AGE RE /( - A� - B " - - `,z�..''>>• - _ -- .._ - ...OPEN SPACE V F - •i• s •A '� - L.4NDl,SET.P_ ACRES ,`= -�<� \ �. _ =• '`_:..�-• - _ A I � '•� RESIDENTIAL 412.3i� •� ! \ =:�, .` '' A„vim.`.I`- = i _ ` / N/csLANDS/ESHA/OPENSPACE 7709.9 r•' "" "--''�'�� LINEAR PARK/ESHA 50.9 `Na� A� s� DES:G;dA ED ROADWAYS 53.7 FLOOD CONTROL CHANNEL 73.2 �'�r� ����" � ;� i^ �•� - �1 1635.0 TOTAL _ �:r%'' �% �;�• � ,. �I--:,<_ �:«.r` -- WETLANDS 4 ' ^ _ --_ ESHA S��I OPEN SPACE k �i•:''. r.a? WETLANDS ESHA / OPEN SPACE 1 .0 7 s 3 , ,; •�, ���' WETLANDS ESHA /. �• OPEN��.� -=.�-• . SPACE �::... �- .,/�•'�� _'. - :... .. -:�' LINEAR L' P. -_ PARK / ESHA WETLANDS / ESHA S / OPEN SPACE NON-NAVIGABLE OCEAN " ` it I;OCEAN CONNECTION SOURCE: VALE SPECK TAYLOR PACIFIC OCEAN PACIFIC OCEAN North FIGURE 11 BOLSA CHICA RESIDENTIAL,DEVELOPMENT PLAN Residential Development Potential Compared with Huntington Beach's Housing Needs As indicated in Section 4.5, the Regional Housing Needs Assessment (RHNA) prepared by SCAG has identifed a future housing need for Huntington Beach of 6,228 units to be developed over the next five years (1989-1994) . Combining the residential development potential on vacant, underutilized, redevelopment, non-residential and surplus sites, an estimated 7,527 additional units could be developed in the City (refer to Table 41) . This would indicate that the City's General Plan and zoning provide for a residential development capacity which is adequate to accommodate the City's share of regional housing needs. In addition, with annexation of the Bolsa Chica, an estimated 4,200 to 5,700 additional dwelling units could be accommodated in Huntington Beach. In terms of development opportunities for lower income households, approximately half of potential residential growth is allocated to higher density housing (Medium-High and High Density Residential ) , which can more readily be priced to meet the needs of Very Low and Low Income households. However, even at these higher densities, the City will need to offer incentives to private market developers to ensure the provision of units affordable to Very Low and Low Income households. Condominium units will provide homeownership opportunities for some smaller, Moderate Income households though ownership assistance will still be necessary to provide many of the City's Moderate Income households the option of home purchase. B 7-10 • TABLE 41 CITY OF HUNTINGTON BEACH POTENTIAL RESIDENTIAL DEVELOPMENT SUMMARY RESIDENTIAL DWELLING UNIT POTENTIAL Under- Land Use Vacant utilized Second Redevelop- Non-Resi- Surplus Category Land Land Units ment Areas dential Land Land TOTALS Residential 605 14 619 Estate Residential 605 235 25 232 1,097 Low Density Residential 1,169 600 1 ,769 Medium Density Residential 439 103 542 Medium-High Density Residential 1,813 801 520 3, 134 High Density Planned 366 366 Community TOTALS 4,997 235 25 904 600 766 7,527 B7-11 7.2 Energy Conservation The City has many opportunities to directly affect energy use within its jurisdiction. Because a major proportion of energy consumed in a community is tied to on-site uses, both directly (heating and cooling buildings) and indirectly (through the impact of development patterns on activities such as transportation) , conservation policies directed toward the residential development process offer the greatest potential for the City to reduce energy waste. In this section, building and land use policies are briefly reviewed to identify the steps the City could take to encourage energy conservation in residential development Building Conservation Standards for New Construction Energy conserving building standards for new construction (Title 24 of the California Administrative Code) have been in effect in the State since 1978 and were upgraded in 1982. These standards can be met by any of three alternative approaches: a passive solar building, a well -insulated non-solar building, and a building with an active solar domestic hot water system. Current policy in Huntington Beach with respect to energy conservation building standards involves enforcement of Title 24 standards, as mandated by the State. Modifying building standards represents the most logical and effective means of improving the energy efficiency of buildings yet to be built. Two strategies are available to the City to reduce energy use in newly constructed housing: Minor modifications to building codes and standards: Features such as insulation in walls, ceilings and water heaters, and weatherstripping around doors and windows would significantly reduce energy now wasted in heating and cooling. A well-insulated building is also more comfortable because there are fewer drafts. Passive Solar Design: This approach involves using the building structure itself as an energy source, utilizing energy from the sun and local climate to both heat and cool buildings. Features which should be incorporated include winter and summer shading of south-facing glass, increased thermal mass of the structure to control temperature variations, and appropriate exterior colors and vegetation to reduce artificial cooling requirements. Estimates by the California Energy Commission in Orange County indicate that 85 to 90 percent of the heating and cooling needs of typical tract homes could be met by incorporating passive solar designs. B7-12 i Retrofitting Existing Housing While Title 24 and local building codes are effective means of conserving energy in new residences, they do not apply to the more than 70,000 residential units currently existing in Huntington Beach. Techniques reducing energy use in existing residences, termed weatherization or retrofitting, are therefore important opportunities for energy conservation. Weatherization typically involves the installation of attic insulation, caulking and weatherstripping around doors and windows, water heater blankets, and devices to shade south-facing windows during hot summer months. Weatherization can reduce residential energy consumption by 30 to 60 percent without loss of personal comfort or change of lifestyle. Currently, the City is not involved in retrofitting existing housing units. Support for weatherization is being provided by the federally mandated Residential Conservation Service (RCS) , in which gas and electric companies offer home energy audits to eligible customers. Retrofit ordinances have to be evaluated with respect to their possible effect on the housing market. Although retrofitting may add to the price of housing, it could actually improve the ability of a buyer to qualify for a loan. This is because weatherized houses have lower utility bills, which is a consideration in the debt-income ratio used in decisions of grant loans. The City may also consider implementing a variety of techniques which would promote weatherization. ° The City may follow the model being implemented in Santa Monica. The City of Santa Monica utilizes RCS funds to run its own conservation program which sends municipal energy conservation teams to different neighborhoods to install energy conserving devices. The program is offered for both multi-family and single-family residential structures. • The City could also adopt retrofit ordinances. Typically, such ordinances require the installation of specific, cost-effective weatherization measures in residential buildings built prior to the 1978 building standards. Compliance with these ordinances would be required at the time of resale of the property. The fact that 40 percent of Huntington Beach's housing is rental property underlines the importance of a retrofit ordinance for the City. Owners of rental property have little incentive to voluntarily weatherize rental units. Renters, in turn, may shy away from energy savings investments in their homes since they may not occupy the property long enough to recover the costs involved. Renters are also legally prevented from improving their homes without permission of the owner. B 7-1 3 Active Solar Energy Conservation Another means of ;conserving residential energy is the active solar energy system. Active solar systems, in contrast to passive solar design, involve collecting the sun's energy at one place (usually rooftop collectors) and transferring it mechanically (using pumps or fans) to a separate storage area. In Southern California, active systems are generally too expensive for space heating but are particularly well suited to heating hot water for domestic, pool , and commercial use. State and federal Tax Credits The economics of solar hot water heating are closely tied to state and federal income tax credits. Currently, there are no state tax credits available for solar heating of spas and pools. A solar tax credit of 50% is granted for the installation of solar systems in residential dwellings. There is a $3,000 limit on the tax credit per solar system. Federal tax credits are granted for solar space and hot water heating but not for pool heating. Homeowners as well as members receive a 40 percent tax credit for the first $10,000 spent for a solar system granted the unit is built before 1977. Landlords are eligible for a business energy credit of 15 percent for installation of active solar systems in rental units regardless of when they are constructed. The cost-benefit-analysis for solar systems should also include indirect economic benefits such as reduced imports of nonrenewable fuels, increased energy self-sufficiency, reduced environmental pollution, and stimulation of local employment. Promoting Solar Development The City has various alternatives for promoting solar development within its jurisdiction. More specifically, the City may give careful consderation to implementing some set of the follow programs: Adoption of solar systems ordinances. Numerous cities and counties throughout California have enacted ordinances requiring the use of solar energy as part of the heating system for new pools and spas. Many communities have also adopted ordinances requiring solar domestic hot water heating. Mandating solar systems through design review process. By requiring that solar systems be a condition for approval of subdivision maps, local government would ensure that solar be incorporated into larger housing developments which comprise a majority of the larger housing developments in Huntington Beach. In comparison to the implementation of a solar systems ordinance, this approach would be simpler and less costly to adminster, but would require more involvement by the City's planning staff. B 7-1 4 The Municipal Solar Utility (MSU) concept. An MSU provides residents with financial assistance to facilitate the adoption of solar systems in the community. It can take one of three basic forms: 1) direct services offering a range of products and services to meet consumer needs; 2) broker MSU which matches the needs of residents with solar suppliers. This service offers low interest loans, technical assistance, system maintenance, and links customers with private solar firms which sell and install systems; 3) a facilitator MSu which helps customer define their needs by offering consumer services, technical assistance, post-installation inspection, and complaint mediation. Land Use Controls The City can take the intiative in guiding local development and land use in a way that reduces energy use requirements substantially over the long run. This discussion covers three areas in which the City can exercise its power to ensure that land is developed in an energy efficient manner: solar access, residential design standards, and general land use guidelines. Solar Access: The lack of guaranteed direct access to sunlight is one of the major barriers to more wide-spread use of solar heating. In 1978, the California State Legislature passed the Solar Rights Act and the Solar Shade Control Act which provide a firm basis for protecting solar access, but the burden of responsibility for doing so is placed on local governments. In an effort to ensure solar access within the jurisdiction, the City may give careful consideration toward implementing specific standards in its zoning, subdivision, environmental , and Site Plan Review regulations which will address the issue of adequate solar access for solar systems. Residential Design Standards: In 1980, the City adopted a Land Use Amendment (Amendment No. 80-1) to the General Plan that reflects Huntington Beach's commitment to energy-efficient residential design. .Design features which would go toward meeting this policy include careful site orientation, passive solar architecture, and use of deciduous vegetation for shading. Three alternative approaches may be considered by the City in implementing energy efficient residential development: 1) provide incentives to developers who voluntarily incorporate energy efficiency in their projects; 2) adopt development standards that specify to what extent energy-efficient design must be incorporated into residential projects; and 3) facilitate the incorporation of energy concerns into the development review process by developing a comprehensive list of energy conservation criteria that could be used in evaluating the energy conserving potential of submitted plans. B7-15 Another tool for ensuring energy conservation in new development is the California Environmental Quality Act (CEQA) . Under Appendix F of this Act, energy use implications must be considered in the drafting of Environmental Impact Reports. The City could require developers to submit, as part of their plans, a "statement of energy efficiency" , in which they must specify the measures taken to minimize energy use in their proposed development. Land Use Conservation: Because 42 percent of total energy consumption is used for local travel , considerable conservation can be achieved by reducing local travel . Intergrating land uses helps achieve this goal . Neighborhoods that encompass a mix of residential and service-related land uses (e.g. : convenience grocery stores, low intensity offices and commerical space, recreational facilities) promote pedestrian movement and significantly reduce energy consumption used for travel. - Short distance travel may also be reduced by facilitating bicycle travel Huntington Beach is well -suited to bicycle travel , both topographically and climatically. Safety of bicycle and pedestrian paths should be an important consideration in the review of new housing developments. Similarly, pedestrian paths should be as short and direct as possible, providing short-cuts through particularly long blocks and major development sites. B 7-1 6 ' / - Sax: /t6c-, .✓' REQUEST FOR CITY COUNCIL ACTION " �`�� so Date May 21, 1990 Submitted to: APPROVED BY CITY COUNCIL Honorable Mayor and City Council Submitted by: Michael T. Uberuaga, City Administrator 19 �� , , Prepared by: Mike Adams, Director, Community Developm nt CITY CLEKK f Subject: 1989 HOUSING ELEMENT UPDATE ;Pes ", Consistent with Council Policy? [X] Yes [ ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternative Actions, Attachments: . � i STATEMENT OF ISSUE: Transmitted for your review and adoption is the 1989 Draft Housing Element Update which discusses the City' s present and future housing needs and identifies goals, policies, and programs to address these needs . RECOMMENDATIONS: Planning Commission Action and Recommendation on May 1, 1990 : A MOTION WAS MADE BY KIRKLAND, SECOND BY BOURGUIGNON, TO DELETE POLICY REFERNCE TO ENERGY CONSERVATION RETROFIT ORDINANCE, BY THE FOLLOWING STRAW VOTE: AYES: Kirkland, Bourguignon NOES: Mountford, Williams, Ortega, Leipzig ABSENT: Shomaker ABSTAIN: None MOTION FAILED A MOTION WAS MADE BY KIRKLAND, SECOND BY MOUNTFORD TO DELETE REFERENCE TO EQUITY COOPERATIVES, BY THE FOLLOWING STRAW VOTE: AYES: Mountford, Kirkland, Bourguignon, NOES: Williams, Ortega, Leipzig ABSENT: Shomaker ABSTAIN: None MOTION FAILED Q 04 SO Q '�l�i�`�s �:lu i's1:i2111titlEl j0 Aili 03A1333U P10 5/85 A MOTION WAS MADE BY KIRKLAND, SECOND BY BOURGUIGNON, TO APPROVE NEGATIVE DECLARATION NO. 90-4 , BY THE FOLLOWING VOTE: AYES: Kirkland, Mountford, Williams, Ortega, Bourguignon, Leipzig NOES: None ABSENT: Shomaker ABSTAIN: None MOTION PASSED A MOTION WAS MADE BY KIRKLAND, SECOND BY WILLIAMS TO APPROVE THE DRAFT HOUSING ELEMENT, BY THE FOLLOWING VOTE: AYES: Kirkland, Mountford, Williams, Ortega, Bourguignon, Leipzig NOES: None ABSENT: Shomaker ABSTAIN: None MOTION PASSED A MOTION WAS MADE BY KIRKLAND, SECOND BY WILLIAMS TO RECOMMEND APPROVAL TO THE CITY COUNCIL OF NEGATIVE DECLARATION NO. 90-11 AND THE DRAFT HOUSING ELEMENT, BY THE FOLLOWING VOTE: AYES: Kirkland, Mountford, Williams, Ortega, Bourguignon, Leipzig NOES: None ABSENT: Shomaker ABSTAIN: None MOTION PASSED Staff Recommendations : Approve Negative Declaration No. 90-11 and th 1989 Draft Housing Element Update by adopting Resolution No. bl% and convey the adopted Housing Element to the California Department of Housing and Community Development (HCD) for their final approval . ANALYSIS• California State Law requires that local governments prepare and adopt a Housing Element of the General Plan, and that the element be updated at five-year intervals . The City retained the firm Cotton/Beland & Associates to prepare the Housing Element Update. As the document was prepared, input from the City Housing Committee, as well as various interest groups was sought . Housing committee meetings, a public workshop and Planning Commission study sessions were held to review the draft document and solicit input . In response to written and verbal comments, appropriate revisions have been made to the document. RCA - 5/21/90 -2- (5685d) 'f A. State Review: The State Department of Housing and Community Development (HCD) conducted a lengthy review of the Draft Element. In January, HCD initially approved the revised draft element based on the determination that the document complies with State Housing Element" Law. Once approved by the City Council, the document will be transmitted to the state for their final approval . B. Housing Element Format : I State law requires that housing elements consist of an identification and analysis of existing and projected housing needs and a housing plan. The housing needs assessment shall include: 1) information on population characteristics and trends; 2) household characteristics including special need' s groups such as the handicapped, elderly, large families, farm workers, female headed households and the homeless; 3) housing age, type, tenure, and condition; and 4) housing constraints and opportunities . The housing plan includes a statement of goals, policies, quantified objectives, and scheduled programs for the preservation, improvement, and development of housing within the City. The City' s housing document is organized into two major sections . The first part of the document consists of the Draft Element which includes a summary of the housing needs assessment and the housing plan. The second section is comprised of the Technical Data Report (Appendix B) and includes the complete housing needs assessment . In addition, State law requires communities to assess their achievements under the previously adopted housing programs as part of the required five year update. These accomplishments are quantified where possible, and comparisons are made with projected or planned objectives that were established. Where significant differences exist between the planned and achieved objectives, the reasons for these differences must be discussed. Some of the City' s achievements in the last five years include: 1) development of a 164 unit senior housing project; 2) issuance of mortgage revenue bonds for 55 single family home purchases; 3) participation in Project Self-Sufficiency; 4) secured 577 housing vounchers/certificates; 5) issuance of 226 low interest rehabilitation loans; and 6) participation in construction of 391 affordable units. Following the analysis of past accomplishments, revised policies and programs may be formulated. The Housing Element is intended to direct residential development in a manner to comply with State Housing Law by assisting the community in providing for future housing needs . The housing plan detailed in the Housing Element provides the City with methods for meeting future housing requirements in five issue areas. The issue areas are 1) accessibility, 2) adequate provision, 3) adequate sites, 4) preserving housing and neighborhoods, and 5) preserving affordability. RCA - 5/21/90 -3- (5685d) C. Regional Housing Needs Assessment (RHNA) : The Southern California Association of Governments (SCAG) employs a statistical model to project future housing needs . The Regional Housing Needs Analysis (RHNA) forecasts the City will need to supply housing to accommodate 6,228 households from July 1989 through June 1994 . Projections consider housing on a regional and local level and are based on several factors including market demand for housing, employment opportunities, availability of suitable sites for public facilities, commuting patterns, type and tenure of housing need, and housing needs of farm workers . Future housing needs reflect the number of new units needed in a jurisdiction based on households which are expected to reside within the jurisdiction (future demand) , plus an adequate supply of vacant housing to assure mobility and new units to replace losses. Based on the distribution of regional income, these households are subdivided into HUD' s four income groups . The following information extracted from the Draft Housing Element (Table 8, page 3-32) details the City' s household needs by income group. CITY OF HUNTINGTON BEACH 1989-1994 HOUSEHOLD NEEDS BY INCOME GROUP Very Low (0-50% County median income) 984 (15 . 8%) Low (50-80% County median income) 1,264 (20 .3%) Moderate (80-120% County median income) 1,370 (22 .0%) Upper (over 120% County median income) 2, 610 (41. 9%) Total Households 6,228 The policies and programs detailed in the Housing Element are intended to assist the City in meeting its future housing needs . The housing plan is a comprehensive approach advocating a variety of programs to meet the City' s housing needs . As noted in the Draft Element, the City can meet these projected housing needs by providing potential residential development areas to accommodate approximately 7, 527 housing units. These units consist of new construction, rehabilitated units, and unit conservation (housing assistance programs) . Potential residential information is detailed on Table 3, page 2-21. D. Affordable Housing : Providing affordable housing is one of the greatest challenges posed to California cities by State Housing law. This is especially critical in coastal cities where housing demands and costs are high and housing supply may be limited. The five housing issue areas in the Draft Element require that the City address various aspects of affordable housing . RCA - 5/21/90 -4- (5685d) City of Huntington Beach 1989 Housing Element Update Revised Draft Housing Element m p�xumcuT AVAIL.AgL4 P*Pxm c.rry •f Over the past five years the City has participated in numerous affordable housing developments. The City has utilized a combination of City incentives, including density bonus and bond financing strategies, combined with outside funding sources to provide 391 affordable units . These units comprise approximately 32 percent of the total units constructed in these developments (Table 4 , page 3-5) . The Housing Element also sets forth a number of policies and programs to address future affordable housing needs over the next five years . The intent of these programs is to provide a comprehensive package of programs to help resolve affordable housing problems . In addition to affordable housing programs, the Housing Element identifies mechanisms to implement these programs . Several of these programs utilize Redevelopment Set-Aside Funds, Community Development Block Grant Funds, and some private donations . Eligibility for affordable housing units is determined using HUD guidelines . These guidelines are used to satisfy requirements for federally funded programs, programs using redevelopment set-aside monies, and to satisfy the HUD based RHNA housing projections . An affordable housing monitoring program is being established and funded by the City to ensure that housing units earmarked for affordable households remain affordable. E. Response to Comments : During the review process, the Planning Commission received three written responses to the Draft Housing Element Update. They were from the Chamber of Commerce, Huntington Beach/Fountain Valley Board of Realtors and the City' s Economic Developemt Department. Responses to their comments are attached to the May 1, 1990, Planning Commission staff report . Document changes as highlighted in brackets on Attachment No. 2 of the Planning Commission Staff Report have been incorporated into the Draft Housing Element Update dated May, 1990. FUNDING SOURCE: No funds required. ALTERNATIVE ACTIONS: Continue City Council Action to June 4, 1990 with the public hearing open for 1989 Draft Housing Element Update and Negative Declaration No. 90-11. ATTACHMENTS 1. Resolution No. 2 . Draft Housing Element, ' revised as of May, 1990 . 3 . Planning Commission Staff Report and Negative Declaration No. 90-11 dated May 1, 1990 (includes response to comments) . MTU:MA:SH:REL:kjl RCA - 5/21/90 -5- (5685d) sTAf f huntington beach department of community development EP OR TO: Planning Commission FROM: Community Development DATE: May 1, 1990 SUBJECT: 1989 DRAFT HOUSING ELEMENT/NEGATIVE DECLARATION NO. 90-11 1 0 SUGGESTED ACTION: Approve Negative Declaration No. 90-11 and Draft Housing Element and transmit recommendation to the City Council for their adoption. 2 . 0 BACKGROUND: California State Law requires that local governments prepare and adopt a Housing Element of the General Plan, and that the element be updated at five-year intervals . The City retained the firm Cotton/Beland & Associates to prepare the Housing Element Update. As the document was prepared, input from various interest groups was sought . In response to written and verbal comments, appropriate revisions have been made to the document. The State Department of Housing and Community Development (HCD) conducted a lengthy review of the Draft Element. In January, HCD initially approved the revised draft element based on the determination that the document complies with State Housing Element Law. Once the document is adopted by the City Council, the adopted Housing Element will be transmitted to HCD for their final approval of the document . 3 . 0 ENVIRONMENTAL STATUS: Pursuant to environmental regulations in effect at this time, the Department of Community Development posted draft Negative Declaration No. 90-11 for twenty-one (21) days, and no comments either verbal or written were received. Following the initial study of the project, staff has recommended that a negative declaration be issued as this project consists of revisions to existing housing policies and programs . Individual projects implementing these policies or programs will be subject to environmental assessment at the time of application. 4 ANALYSIS: On April 3, 1990, a public hearing was opened on the Draft Housing Element to receive additional public comments . At that time staff recommended that the public hearing be continued to allow staff to respond to comments received on the document (Attachment No. 1) . AdItk Xr- ALNo•3 A-FM-23C Public comments received to date, on the Draft Element have been incorporated into the document where appropriate. The modifications to the Draft Element are briefly described below: 1 . Two additional policies and programs have been incorporated into the goals, policies, and program actions of the Housing Plan (Attachment No. 2) . These policies address single room occupancy (SRO) hotels and affordable housing in the Coastal Zone. SROs are one mechanism to create very low income housing opportunities . This policy and program encourages investigation into the feasibility of this housing product within the City. The conservation of affordable housing opportunities within the Coastal Zone is implicit within the policies and programs in the Draft Element . The addition of a specific policy and program relative to affordable housing in new housing projects, where feasible, in the Coastal Zone conforms to state requirements for the provision of affordable housing. 2 . Additional comments submitted address proposed policies and implementing programs . Some of these comments (Attachment No . 3) provide additional information on funding aspects of programs and they have been included in the descriptions of these programs (Attachment No. 2) . Other comments (Attachment No. 4) address a number of policies and programs . Staff responses to these comments are included in Attachment No. 5 . 5 . 0 RECOMMENDATIONS: Staff recommends that the Planning Commission approve Negative • Declaration No . 90-11 and the 1989 Draft Housing Element and transmit same to the City Council for their adoption. 6 . 0 ALTERNATIVE ACTION: Do not approve 1989 Draft Housing Element and transmit a statement of such action to the City Council . ATTACHMENTS: 1 . Staff Report dated April 3, 1990. 2 . Revised Draft Housing Element pages reflecting additional policies and programs, and modifications to descriptions of implementing programs . 3 . Comments on Draft Housing Element from Economic Development Department dated March 26, 1990. 4 . Comments on Draft Housing Element from the Board of Realtors dated April 23 , 1990 . 5 . Staff responses to comments . SH:REEL: kjl nc Staff Report 5/l/90 -2- (5559d) huntington beach department of community development STA f f �Ep®R TO: Planning Commission FROM: Community Development DATE: April 3 , 1990 SUBJECT: 1989 DRAFT HOUSING ELEMENT 1 . 0 SUGGESTED ACTION: Open Public Hearing, receive public input , and continue December 1989 Draft Housing Element to the May 1, 1990 Planning Commission meeting . 2 . 0 BACKGROUND: California State Law requires that local governments prepare and adopt a Housing Element of the General Plan, and that the element be updated at five-year intervals . The City retained the firm Cotton/Beland & Associates to prepare the Housing Element Update . As the document was prepared, input from the City Housing Committee, as well as various interest groups was sought . Housing Committee meetings , a public workshop and Planning Commission study sessions were held to review the draft document and solicit input . In response to written and verbal comments (Attachment No . 5) , appropriate revisions have been made to the document . The State Department of Housing and Community Development (HCD) conducted a lengthy review of the Draft Element . The primary concern expressed by HCD was the ability of the City' s residential land inventory to provide adequate sites for future housing needs as projected by the SCAG statistical model in the Regional Housing Needs Analysis (RHNA) . Staff reviewed previously constrained land and locations for residential development . As a result , the residential land inventory was expanded to provide for additional residential units . In January, HCD initially approved the revised draft element based on the determination that the document complies with State Housing Element Law (Attachment 2) . Once the document is adopted by the City Council , the adopted Housing Element will be transmitted to HCD for their final approval of the document . 3 . 0 ENVIRONMENTAL STATUS : Pursuant to environmental regulations in effect at this time, the Department of Community Development posted draft Negative Declaration No . 90-11 for twenty-one (21) days , and no comments either verbal or written were received (Attachment 3) . Following A-FM-23C the initial study of the project, staff has recommended that a negative declaration be issued as this project consists of revisions to existing housing policies and programs . Individual projects implementing these policies or programs will be subject to environmental assessment at the time of application. 4 . 0 ANALYSIS : The Housing Element is a mandatory component of the City' s General Plan. State law requires that housing elements consist of an identification and analysis of existing and projected housing needs and a housing plan . The housing needs assessment shall include : 1) information on population characteristics and trends ; 2) household characteristics including special need ' s groups such as the handicapped, elderly, large families , farm workers , female headed households and the homeless ; 3) housing age, type, tenure, and condition; and 4 ) housing constraints and opportunities . The housing plan includes a statement of goals , policies , quantified objectives , and scheduled programs for the preservation, improvement , and development of housing within the City. The City' s housing document is organized into two major sections . The first part of the document consists of the Draft Element which includes a summary of the housing needs assessment and the housing plan . The second section is comprised of the Technical Data Report (Appendix B) and includes the complete housing needs assessment . In addition, State law requires communities to assess their achievements under the previously adopted housing programs as part of the required five year update . These accomplishments should be quantified where possible, and comparisons should be made with projected or planned objectives that were established . Where significant differences exist between the planned and achieved objectives , the reasons for these differences must be discussed . Some of the City' s achievements in the last five years include : 1) development of a 164 unit senior housing project ; 2) issuance of mortgage revenue bonds for 55 single family home purchases ; 3) participation in Project Self-Sufficiency; 4) secured 577 housing vounchers/certificates ; 5) issuance of 226 low interest rehabilitation loans ; and 6) participation in construction of 391 affordable units . Following the analysis of past accomplishments , revised policies and programs may be formulated . The Housing Element is intended to direct residential development in a manner to comply with State Housing Law by assisting the community in providing for future housing needs . The housing plan detailed in the Housing Element provides the City with methods for meeting future housing requirements . Staff Report - 4/3/90 -2- (5255d) Y, A. Goals The 1984 Huntington Beach Housing Element identifies three goals for its housing program which are consistent with State and Regional housing policies . These goals are: 1 . The attainment of decent housing within a satisfying living environment for households of all socioeconomic, racial, and ethnic groups in Huntington Beach. 2 . The provision of a variety of housing opportunities by type, tenure, and cost for households of all sizes throughout the City. 3 . The development of a balanced residential environment with access to employment opportunities , community facilities, and adequate services . These goals remain consistent with State law and are unchanged in the 1989 Housing Element update. B . Policies and Programs 'In order to progress toward the attainment of these goals , the 1984 Housing Element identifies specific policies and programs . The policies are organized around five issue areas which are identified by HCD as important priorities in addressing local housing problems . These areas include housing concerns relative to 1) accessibility, 2) adequate provision, 3) adequate sites , 4) preserving housing and neighborhoods, and 5) preserving affordability. A sixth area, energy conservation, also affects housing affordability and community facilities and services . These areas are consistent in the 1989 Element Update . C . Regional Housing Needs Assessment (RHNA) State law requires jurisdictions to provide .for their share of regional housing needs . The Southern California Association of Governments (SCAG) employs a statistical model to project future housing needs . The Regional Housing Needs Analysis (RHNA) forecasts the City will need to supply housing to accommodate 6 , 228 households from July 1989 through June 1994 . Projections consider housing on a regional and local level and are based on several factors including market demand for housing , employment opportunities , availability of suitable sites for public facilities , commuting patterns , type and tenure of housing need, and housing needs of farm workers . Future housing needs reflect the number of new units needed in a jurisdiction based on households which are expected to reside within the jurisdiction (future demand) , plus an adequate supply of vacant housing to assure mobility and new units to replace losses . Staff Report - 4/3/90 -3- (5255d) > ,, Based on the distribution of regional income, these households are subdivided into HUD' s four income groups . The following information extracted from the Draft Housing Element (Table 8, page 3-32) details the City' s household needs by income group. CITY OF HUNTINGTON BEACH 1989-1994 HOUSEHOLD NEEDS BY INCOME GROUP Very Low (0-50% County median income) 984 (15 . 8%) Low (50-80% County median income) 1, 264 (20 . 3%) Moderate (80-120% County median income) 1, 370 (22 . 0%) Upper (over 120% County median income) 2 , 610 (41 . 9%) Total Households 6 , 228 The policies and programs detailed in the Housing Element are intended to assist the City in meeting its future housing needs . The housing plan is a comprehensive approach advocating a variety of programs to meet the City' s housing needs . As noted in the Draft Element , the City can meet these projected housing needs by providing potential residential development areas to accommodate approximately 7, 527 housing units . These units consist of new construction, rehabilitated units , and unit conservation (housing assistance programs) . Potential residential information is detailed on Table 3 , page 2-21 . In addition to the above housing units , the Bolsa Chica area is another significant housing opportunity for the City. At present , initial efforts are underway to begin the annexation process . Simultaneously, planning efforts have begun. Although several details remain to be finalized some residential development will occur in the area . Development is expected to occur within 3 . 5 years and will include a minimum of 3 , 800 and a maximum of 5 , 700 residential units . Although Bolsa Chica annexation will increase future RHNA projections , residential development slated for the area should satisfy the increased housing estimates . D . Provisions for Affordable Housing Providing affordable housing is one of the greatest challenges posed to California cities by State Housing law. This is especially critical in coastal cities where housing demands and costs are high and housing supply may be limited . The five housing issue areas in the Draft Element require that the City address various aspects of affordable housing . Over the past five years the City has participated in numerous affordable housing developments . The City has utilized a combination of City incentives , including density bonus and bond financing strategies , combined with outside funding sources to Provide 391 affordable units . These units comprise approximately 32 percent of the total units constructed in these developments (Table 4 , page 3-5) . Staff Report - 4/3/90 -4- (5255d) -/d The Housing Element also sets forth a number of policies and programs to address future affordable housing needs over the next • five years . The intent of these programs is to provide a comprehensive package of programs to help resolve affordable housing problems . The following programs are organized by housing issue area and address affordable housing concerns . A detailed explanation of each program is found in Section 3 . 6 of the Housing Element . Area #1 - Accessibility Land Assemblage and Write Down Programs Area #2 - Adequate Provision Tax-Exempt Mortgage Program Density Bonus Incentives Shared Equity Program Section 8 Rental Assistance Payments/Housing Vouchers Project Self-Sufficiency Fast Tract Processing for Affordable Projects Area #3 - Standards and Plans for Adequate Sites Continued review of appropriate locations for increased densities for affordable housing . Area #4 - Preserving Affordability Affordable Housing Monitoring Interest Rate Write-Downs for Existing Affordable Housing Condominium Conversion Ordinance In addition to affordable housing programs , the Housing Element identifies mechanisms to implement these programs . Several of these programs utilize Redevelopment Set-Aside Funds , Community Development Block Grant Funds , and some private donations . Eligibility for affordable housing units is determined using HUD guidelines . These guidelines are used to satisfy requirements for federally funded programs and to satisfy the HUD based RHNA housing projections . An affordable housing monitoring program has also been established and funded by the City to ensure that housing units earmarked for affordable households remain affordable . E . Document Revisions June 1989 to December 1989 The State conducted a lengthy and complete review of the City' s Draft Element . Interim comments from HCD included requests for language clarification and additional information concerning quantification of certain programs . Staff Report - 4/3/90 -5- (5255d) The majority of the State ' s comments centered on the residential land inventory and the ability of the City to meet its regional housing needs based on that inventory. In response to the State ' s concerns , staff and the consultant reviewed all land previously assessed as unsuitable for future residential development due to oil constraints and fragmented ownership. This analysis resulted in an expanded inventory of potential residential sites . The residential inventory was expanded to include an area adjacent to the proposed linear park, a parcel in the vicinity of the downtown oil consolidation project , parcels in the Holly-Seacliff Master Plan area , and the Ascon site (Figure 1, page 2-12) . Constraints may be removed from these parcels through the development of specific plans and various measures to mitigate oil constraints . Information concerning the changes to the document are summarized in Attachment No . 4 . 5 . 0 RECOMMENDATION: Staff recommends that the Planning Commission open the public hearing to receive comments on the document . Following the receipt of written and verbal comments , staff recommends this item be continued to the May 1, 1990 public hearing . This continuance would allow staff the time to respond to comments and would provide the Commission with additional information prior to taking action on this item. ATTACHMENTS : 1 . Draft Housing Element dated December 1989 2 . Department of Housing and Community Development comments dated January 26 , 1990 3 . Negative Declaration No . 90-11 and Environmental Checklist 4 . Summary of Changes to Draft Housing Element : June 1989 - December 1989 5 . Board of Realtors comments dated November 3 , 1989 SH:REL : kla Staff Report - 4/3/90 -6- (5255d) • u Review all regulations, ordinances, departmental processing procedures, and residential fees related to rehabilitation and/or construction to assess their impact on housing costs, and revise as appropriate. ° Provide the management and personnel resources necessary to carry out identified housing programs and responsibilities. ° Continue and expand utilization of Federal and State housing assistance programs. • Promote the availability of sufficient rental housing to afford maximum choice of housing type for all economic segments of the community. community. • Review the City's condominium conversion ordinance, and consider revising to allow modified requirements for units which are set aside for low and moderate income households. • Encourage the retention of adequate numbers of mobile homes and investigate areas for potential new mobile home zoning. • Continue to enforce the City's mobile home conversion ordinance. ° Continue to coordinate with local social service providers and notify • of available City funding to address the needs of the City's homeless population. ° Encourage the provision of alternative housing through replacement housing and/or relocation for low or moderate income households displaced by public or private developments. ° Ensure that any adverse impacts are minimized when increasing densities or relaxing standards in order to provide for low and moderate income housing. ° Investigate the development of single room occupancy (SRO) hotels to provide housing opportunities for very low income residents. 2.0 Programs 2. 1 Action: Apply to the State Mortgage Bond Allocation Committee for single-family bond allocations to enable below market rate financing to be offered on qualifying projects to moderate income households. Anticipated Impact: Make a greater share of housing stock affordably to first-time buyers. Responsible Agencies: Huntington Beach EDD. • Funding Source: Bond revenue. Schedule: Ongoing. 3-11 AK &6A _ 2a 2.2 Action: Continue to offer incentives, including density bonus, land • write downs, and write downs of other development costs, to for- profit and non-profit developers, for the development of senior citizen and low/moderate housing. Anticipated Impact: Development of between 50 to 100 additional affordable units during the 1989-1994 period. Responsible Agencies: Huntington Beach CDD. Funding Source: Department budget. Schedule: Ongoing. 2.3 Action: Provide consultation and technical assistance to aid private developers in expanding housing opportunities. Anticipated Impact: Increased housing choice and more affordable housing. Responsible Agencies: Huntington Beach CDD and EDD. Funding Source: Department administrative budgets. Schedule: Ongoing. • 2.4 Action: Continue the City's outreach campaign to solicit participation of private developers in affordable housing programs; maintain a roster of interested firms. Anticipated Impact: The production of affordable housing. Responsible Agencies: Huntington Beach EDD. Funding Source: Huntington Beach EDD Administrative Budget. Schedule: Ongoing. 2.5 Action: Continue to contract with the Orange County Housing Authority to administer the Section 8 Housing Assistance/Voucher Program and aggressively pursue the attainment of additional housing vouchers. Anticipated Impact: Augment the current level of rental assistance (577 certificates/vouchers) , with an annual assistance goal of 238 units. Responsible Agencies: Huntington Beach EDD and the Orange County • Housing Authority. 3-12 — 2- b Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989-90. 2. 16 Action: Investigate the use of specific plans to promote a balance of housing and open space, and to reduce the per unit cost of housing through such methods as clustered housing, zero lot line on smaller lots, flexible setbacks, reduced parking standards and lot sizes. Anticipated Impact: Reduced housing development costs and associated decreases in sales/rental prices. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989-90. 2. 17 Action: Investigate the feasibility and a possible ordinance to permit Single Room Occupancy (SRO) hotels as a mechanism for providing • affordable housing. Anticipated Impact: Facilitate the development of SROs. Responsible Agency: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: Complete study and prepare a report within one year. 2. 18 Action: Encourage developers to pursue "gap" financing from the Orange County Housing Authority for residential projects offering affordable units. Anticipated Impact: Increase the supply of affordable housing by offering financial assistance to project developers. Responsible Agency: Huntington Beach CDD. Funding Source: Orange County Housing Authority. Schedule: Ongoing. • 3-16 — � L • GOAL 5.0 PRESERVING AFFORDABILITY An important aspect of making housing available to all economic segments of the community is ensuring that assisted housing remains affordable to the income groups for which it was intended or which presently occupy it. In the rental housing market, the priority of preserving affordability may conflict with that of preserving housing and neighborhoods, since rehabilitated units can command higher rents. This conflict necessitates a delicate balance. 5.0 Policies In order to preserve affordability, the City of Huntington Beach shall : • Promote and, where possible, require the continued affordability of all units produced with participation by the City or its authorized agents including density bonuses and tax exempt financing. • Encourage the continued affordability of those units utilizing public funds for rehabilitation. ° Regulate the conversion of existing apartment units to condominiums to minimize the adverse impact of conversions on the supply of low • and moderate income rental housing, keeping in mind that condominiums may offer affordable opportunities for home ownership. • Mitigate the displacement impacts occurring as a result of residential demolition through unit replacement or relocation of tenants. • Conserve affordable housing opportunities in the Coastal Zone through implementation of State requirements for replacement of low and moderate income housing, and for inclusion of affordable units where + feasible in new residential construction. 5.0 Programs 5. 1 Action: Develop an affordable housing monitoring program, including restrictive covenants for rental units and financing mechanisms, to ensure the long term conservation of affordable units for which City incentives have been provided. Anticipated Impact: The retention of affordable units produced with public sector assistance/incentives. Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. Funding Source: Department budgets. Schedule: 1989. • 5.2 Action: Develop a Multi-Family Unit Interest Rate Write-Down Program targeted towards publicly-subsidized housing projects with the potential for conversion to market rate. 3-25 — 2 � 1 • 5.6 Action: Meet and consult with mobile home owners who are potential displacees from mobilehome parks which intend to convert to other uses. Anticipated Impact: Assessment of impacts and preparation of strategies to address needs of displacees. Responsible Agencies: Huntington Beach CDD and Redevelopment Agency. Funding Source: Department Budgets. Schedule: Ongoing. 5.7 Action: Provide financial assistance for relocation of persons displaced by redevelopment activities, including occupants of mobile homes. Anticipated Impact: Mitigation of adverse impacts on displaced residents. Responsible Agency: Huntington Beach EDD. Funding Source: Redevelopment Tax Increment. • Schedule: Ongoing. 5.8 Action: Continue to monitor and assure replacement of low and moderate income housing which is demolished or converted in the Coastal Zone. Anticipated Impact: Conservation of affordable housing in the coastal zone through replacement requirements. + Responsible Agency: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: Within one year. • 3-27 VzQ Yorktown-Lake. The progress of these project areas spurred the • Redevelopment Agency to include its primary commercial center, Huntington Center, in its redevelopment plans in 1984. Through its redevelopment efforts, the City Council/Agency is responsible for 344 new units of affordable housing, including three senior housing projects. Significant housing rehabilitation improvements have also been achieved within the Community and Neighborhood Enhancement target areas. While the Redevelopment Agency has made significant progress in attaining the goal of increasing the City's affordable housing stock, none of the 20% set-aside fund has yet been expended, primarily due to its low balance. However, with completion of a recent tax allocation bond sale, nearly $3.7 million dollars is currently allocated to the 20% set-aside fund. In 1988 AB 4566 mandated that redevelopment agencies with "excess surplus"(a) monies in their housing set aside funds must either spend these funds within five years or else transfer them to another local housing authority for expenditure. State law sets forth a variety of options for localities to expend their housing funds, including the following: - Land Disposition and Write-Downs - Site Improvements - Loans - Issuance of Bonds - Land and Building Acquisition by Agencies - Direct Housing Construction • - Housing Rehabilitation Programs - Rent Subsidies - Predevelopment Funds - Administrative Costs for Non-Profit Housing Corporations A Housing Committee comprised of three City Council/Redevelopment Agency members and four citizen representatives was formed to develop the fiscal year 1989-90 20% Housing Set-Aside budget and implementation plan. The Plan identifies expenditure of redevelopment set-aside funds on the following programs: 1 . Rehabilitation projects benefiting low and moderate income households where federal CDBG funds are found to be too restrictive. 2. Multi -Unit interest rate write-downs for existing federally assisted (Section 236) housing projects with the potential for conversion to market rate with expiration of the original loan. (The City also intends to explore the feasibility of having non-profit sponsors take over expiring projects with financing provided by tax-exempt + multi -family revenue bonds. ) (a) "Excess surplus" is defined as any unexpended and unencumbered balance in an agency's Low and Moderate Income Housing Fund that exceeds the greater of five hundred thousand dollars or the aggregate amount deposited into the Fund pursuant to Community Redevelopment Law • (Health and Safety Code Sections 33334.2 and 33334.6) during the agencies preceding five fiscal years. 3-34 - 2 � 3. First time buyer deferred payment loans for down payment assistance to qualifying low and moderate income households. 4. Private market leveraging of funds (development cost write-downs) to increase the number of affordable units provided in publicly assisted housing developments. 5. Mobile home assistance to low income mobile home owners to assist with a variety of eligible programs, perhaps including emergency repair grants. Based on this first year budget for expenditure of the City's 20% set-aside fund, these programs have been incorporated into the Housing Element. In addition, based on direction provided from City redevelopment and housing staff, several additional Housing Element programs have identified the redevelopment set-aside fund as a potential source of program funding over the five year period of the Housing Element. • i 3-35 debris, inoperable vehicles, illegal conversions, improper occupancy, and • other nuisance and zoning complaints. Upon inspection, if violations of code exist, a violation notice is issued to the responsible party. A reasonable period of time is given to bring the violation into compliance. Failure to comply will result in code compliance proceedings. Citations may be issued by code enforcement officers in cases where health and safety may be threatened. Due to citizen complaints and community concerns regarding deterioration within the City, the code enforcement program has been expanded to provide three full time field inspectors and a fourth part-time inspector. This staffing level enables the Community Development Department to respond to the average monthly caseload of 125 code complaints within a reasonable response period. (Program Actions 4.5, 4.8, 4.9) Condominium Conversion Ordinance The City of Huntington Beach has adopted a stringent Condo Conversion Ordinance that requires converted units to conform to the requirements of the City's Planned Unit Development (PUD) Ordinance. Since most existing multi -family housing units have been developed to standards that generally require substantially less open space and parking than that required under the PUD Ordinance, these requirements serve as a significant disincentive for condominium conversions. The identified action for this program indicates review and potential revision of the City's current Condominium Conversion Ordinance to allow modified requirements if a portion of the • units are set aside for Low and Moderate Income households. (Program Action 5.3) Interest Rate Write-Downs for Existing Affordable Housing A community's existing affordable housing stock is a valuable resource which should be conserved and, if necessary, improved to meet habitability standards. The City of Huntington Beach has several federally assisted (Section 236) housing projects with the potential for conversion to market rate with expiration of the original loan. In order to address this potential loss in affordable units, the City is in the process of developing a Multi -Family Unit Interest Rate Write-Down Program. This program will offer a lump sum write-down of an existing interest bearing note to reduce debt service on existing multi -family apartment complexes. In return, the property owner will execute with the City a recorded covenant requiring the continuance of affordable rental rates to low and moderate income households or a minimum of fifteen years . (Program Action 5.2) A second approach which may be pursued to conserve existing affordable units would be for a non-profit sponsor to purchase Section 236 or other subsidized projects at the current market value with financing provided by tax-exempt multi -family revenue bonds issued by the City. The rating of + these tax-exempt securities could be enhanced by pledge of the redevelopment housing set-aside funds, thus reducing the net interest cost • of the mortgage loan. 3-41 - Zk • Relocation Assistance Several of the City's lower income residential neighborhoods contain significant household overcrowding, housing units occupied by two and three families. In an attempt to improve housing conditions through reducing unit overcrowding, the City is initiating a program to offer tenants Section 8 rental subsidies to relocate to units in other parts of the City. Relocation assistance will be offered to tenants consistent with Federal requirements. (Program Action 4.7) • 0 • 3-41. 1 s F_fl)� CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNI *19 IIVNIINGi()N fli ACII Howard Zelefsky S To Planning Director From P S Subject COMMENTS ON DRAFT HOUSING Date M ELEMENT Pursuant to our meeting on the captioned document of Wednesday, March 21, 1990, I would like to provide you with the following comments: 1. HUD has recently issued a moratorium on the prepayment of mortgages for affordable housing units developed through the section 236 program. This will temporarily prohibit prepayment of these loans and conversion of the units to market rate rentals. However, as a long term solution currently being proposed is a program through which a non-profit sponsor could purchase these projects at the current market value with financing provided by tax-exempt multi-family revenue bonds issued by the local jurisdiction. In the case of Huntington Beach, the rating of these tax-exempt securites could be enhanced by pledge of the redevelopment housing set-aside funds thus reducing the net interest cost of the mortgage loan. In discussion with housing practitioners in other jurisdictions the current wisdom is that this approach may offer more • potential for a satisfactory and long term resolution of the situation surrounding 236 projects than any continued involvement by HUD. 2. Regarding single-family mortgage revenue bonds for first time buyers, I believe the draft housing element should point out that since tax reform in August, 1986 it is substantially more difficult for local jurisdiction to sell bonds to provide single family mortgages. Specifically, the tax reform act of 1986 reduced the total volume of tax-exempt financing which may be undertaken in any state. This "volume cap" has been particularly burdensome in states like California which have previously been active in debt issuance. In order to sell single family mortgage revenue bonds it is necessary for a jurisdiction to apply to the Mortgage Bond Allocation Committee which is an arm of the State Treasurer's office. It should be pointed out that the state volume cap applies to all debt issuance on a tax-exempt basis including that which the state may wish to undertake as well. Beyond this volume restriction, the 1986 tax act also lowered the purchase price and income restrictions making the financial feasibility of such a program in a high cost area like Huntington Beach more difficult. 3. I would also like to bring to your attention that the Orange County Housing Authority has a program to provide "gap financing" to private projects offering affordable units. This program is available anywhere within the OCHA jurisdiction and the amount, rates and terms are determined on a project by project basis depending on need. You may also wish to make a specific reference to a project in Huntington Beach which has made preliminary • March 26, 1990 Page two contact with the Housing Authority staff in this regard. CalMark Development • has achieved an agreement with the Ocean View School District for the current administrative side of the district located near Warner and Beach Boulevard. The developer plans to produce both affordable family units and affordable senior citizen units on the site. 4. You may also wish to add a specific reference to exploring the feasibility of single room occupancies within the city. 5. Attached are pages 3 — 34 and 35 with comments on specific aspects of the Redevelopment Housing Set—Aside Program. I hope that this information will be of assistance to you. Of course if you should have any questions or require additional information please do not hesitate to contact us at x5542. SVK:jar 6869r A • — 3b • Yorktown-Lake. The progress of these project areas spurred the Redevelopment Agency to include its primary commercial center, Huntington Center, in its redevelopment plans in 1984. Through its redevelopment efforts, the City Council/Agency is responsible for 344 new units of affordable housing, including three senior housing projects. . Significant housing rehabilitation improvements have also been achieved within the Community and Neighborhood Enhancement target areas. While the Redevelopment Agency has made significant progress in attaining the goal of increasing the City's affordable housing stock, none of the 20% set-aside fund has yet been expended, primarily due to its low balance. However, with completion of a recent tax allocation bond sale, nearly $3.7 million dollars is currently allocated to the 20% set-aside fund. In 1988 AB 4566 mandated that redevelopment agencies with "excess surplus" (a) monies in their housing set aside funds must either spend these funds within five years or else transfer them to another local housing authority for expenditure. State law sets forth a variety of options for localities to expend their housing funds, including the following: - Land Disposition and Write-Downs - Site Improvements - Loans - Issuance of Bonds - Land and Building Acquisition by Agencies - Direct Housing Construction - Housing Rehabilitation Programs - Rent Subsidies - Predevelopment Funds - Administrative Costs for Non-Profit Housing Corporations A Housing Committee comprised of three City Council/Redevelopment Agency members and four citizen representatives was formed to develop the fiscal year 1989-90 20% Housing Set-Aside budget and implementation plan. The Plan identifies expenditure of redevelopment set-aside funds on the following programs: I . Rehabilitation projects benefiting low and moderate income households where federal CDBG funds are found to be too restrictive. 2. Multi -Unit interest rate write-downs for existing federally assisted (Section 236) housing projects with the potential for conversion to market rate with expiration of the original loan . (a) "Excess surplus" is defined as any unexpended and unencumbered balance • in an agency's Low and Moderate Income Housing Fund that exceeds the greater of five hundred thousand dollars or the aggregate amount deposited into the Fund pursuant to Community Redevelopment Law (Health and Safety Code Sections 33334.2 and 33334.6) during the agencies preceding five fiscal years. 3-34 r 3. First time buyer deferred payment loans for down payment assistance to • qualifying low and moderate income households. 4. Relocation assistance to income households residing in overcrowded conditions within neighborhood enhancement target areas; relocated L' - tenants would recej( priority for federal ren%subsidies. 5 Private market leveraging of funds (development cost write-downs) to increase the number of affordable units provided in publicly assisted housing developments. 6. Mobile home assistance to low income mobile home owners to assist with a variety of eligible programs, including r-el-oca.t-i.on--ass-i-stance--and-- emergency repair grants. Based on this first year budget for expenditure of the City's 20% set-aside fund, these programs have been incorporated into the Housing Element. In addition, based on direction provided from City redevelopment and housing staff, several additional Housing Element programs have identified the redevelopment set-aside fund as a potential source of program funding over the five year period of the Housing Element. • 3-35 Huntington Beach Fountain Valley Board of REALTORS, Inc. R E A L T O R 8101 Slater Avenue• Huntington Beach,CA 92647•(714)847-6093•FAX(?14)841-3375 April 23 , 1990 TO : Planning Commission , City of Huntington Beach cc : Michael Adams , Director of Community Development FROM : Tom Van Tuyl , President RE : Proposed Housing Element , December 1989 Draft We were pleased to note that many of our suggested comments and corrections to the earlier draft had been incorporated into this document , and we would like to compliment staff for their continuing efforts to improve this document to accurately reflect the housing needs of our community . Following are our comments on this draft . You will find that we are still suggesting some changes or corrections , but in many instances , we are not only offering our support , but also our technical assistance to • implement some of the proposed programs . Page 2-7 Financing : We suggest that in paragraph 1 , line 7 , the word "will " be changed to "may . " We believe that this is more accurate ; overextension is not an automatic result of a variable interest rate loan . SUGGESTED ADDITION Paragraph 3 : We suggest an addition to the last line as follows : " . . .and is exploring the implementation of a mortgage credit certificate program as well . " Page 2-9 Local Processing and Permit Procedures : We support expedited process ng for all housing developments , and encourage the City to continue to seek ways to improve this service . Page 2- 16 Section 2 . 3 . 3-Second Units : We believe the City s ou d permit res dent al second units in all areas of the city , provided that the project meets the requirements of the authorizing ordinance . Page 3- 1 Issue #1 -Accessibility: We note that the City has only issued 4 grants in 5 years to make rental units accessible to the handicapped . We concur that better marketing of this opportunity is a positive step , but recommend that the amount of the grant be increased to $2 , 500 since $ 1 , 500 is simply not enough money for this type of property improvement project . • OFFICERS TOM VAN TUYL, President • FLORENCE LUBOW, First Vice President LUCILLE HARMON, Second Vice President • RITA SPIRA, Secretary/Treasurer DIRECTORS a ► JAN SHOMAKER • BARRY BUSSIERE• NANCY RHYME • VICKY BAGLEY • JOHN CLOUGHEN WILL L. WOODS, Executive Vice President • JUDITH A. SEVERY.Vice President/Public Affairs Page 2---April 23 , 1990 Board of REALTORS comments • Page 3-2 Issue #2-Adequate Provision : We recommend that the multi -family zoning ordinance be revised to reduce required recreation space and common open space in smaller projects in order to encourage the development of these projects . Page 3-4 Issue #5-PreservingAffordabilit Pro ram #1 : We suggest that his program applies to rental_ projec s only and request that the word " rental " be inserted to clarify . Page 3- 11 Section 2 .0 Pro rams-2 . 1 Action Item: We agree that the City should explore involvement in the Mortgage Credit Certificate program and would be pleased to offer technical assistance in the development and implementation of this program. Page 3- 12 2 . 5 Action Item: Comment : We are pleased to see that the City intends to pursue additional Section 8 vouchers , but note that many who qualify for assistance must relocate to neighboring cities to find housing -thus pointing out the continuing need for affordable rental housing units . Page 3- 13 , 2 .7 Action Item: We support review of development • standards to determine which ones can be relaxed in order to reduce housing costs . Page 3- 13 , 2 .8 Action Item: We support development of fast track processing of all housing projects , and suggest that the City also explore other ways to facilitate housing projects during the construction phase , such as timely and coordinated insprections , etc . , in order to reduce the overall costs of housing . Page 3- 14 2 . 12 Action Item: We support the development of a p lot project to match residents of various ages as roommates , and inclusion of Project Self-Sufficiency participants . Page 3- 15 , 2 . 13 Action Item: We support in concept the development of a shared equity program for first-time homebuyers , and would be pleased to offer technical assistance to the City to develop and implement this program. Page 3- 16 2 . 16 Action Item: We support use of specific plans to promote balance of housing and open space and the suggestions in item 2 . 16 to reduce the per-unit cost of housing . SUGGESTED ADDITION : We recommend an additional action item as follows : " ell surplus city land at below-market rates to non- profit housing corporations to building low- income rental housing . " • - 46 Page 3---April 23 , 1990 , Board of REALTO RS comments Page 3-22 , 4 .0 Programs_: Many Huntington Beach homeowners and owners of rental properties are experiencing problems with subsidence . We believe this will lead to deterioration of properties and should be among the problems addressed in several of the action items in this section on Preserving Housing and Neighborhoods . Appropriate action items which could address this issue include 4 .2 , 4 . 4 , 4 .5 . In addition , since the rehabilitation monies are underutilized , can the target areas eligible for these funds be expanded? Page 3-23 , 4 .8 Action Item: We support in concept , but would be very concerned if the proposed property maintenance inspections were implemented in such a manner as to violate the property rights of owners or tenants . We would like additional information on this program . Page 3-25 Section 5 .0 Policies : We believe that policies requiring " continued affordability" should apply to rental units only . We strongly oppose "continued affordability" , i . e . resale price controls , on for-sale housing . SUGGESTED ADDITION : We also recommend an additional goal as follows : Promote and encourage the development of affordable for- sale units by granting increased density to reduce the overall costs of the entire project---thus preserving the long-term affordability of all of the units . Page 3-25 , 5 . 1 Action Item: We support this program as it relates to rental housing only . To this end , we recommend deletion of the words " . . .and financing mechanisms " because that appears to apply to ownership units . Page 3-28 6 . 0 Policies : While we support energy conservation , we totally oppose retrofit ordinances triggered by the sale or improvement of the property . This program is discriminatory and penalizes people who sell or rehabilitate . This is contrary to earlier goals encouraging neighborhood preservation ! The City should develop incentives to encourage property owners to voluntarily participate in energy-conservation programs . Page 3-36 Section 3 .6 . 1 . 1-DensityBonus Incentives : We believe that density bonuses as described when they apply to only a few units in an otherwise market rate development) can be proven to be ineffective as in providing long opportunities for affordable housing . We recommend that , when density bonuses are granted they be used to reduce the overall costs of the development , • Page 4---April 23 , 1990 Board of REALTORS comments • thereby increasing the number of units so that the entire project is more affordable . We are opposed to having two sets of housing wherein one homebuyer is in effect subsidizing another . We are opposed to deed restrictions on ownership housing . Page 3-38 Affordable Housing Monitoring : We can support this if it applies to rental housing onlyl Please clarify . Shared Equity Program: We support in concept and offer .our assistance to develop and implement . Pages 3-38 - 3-41 3 .6 . 1 .2 Assistance to Existing Units - Recommend that existing rehabilitation funds be made available , where possible , to assist property owners dealing with subsidence . If existing funds are inadequate to meet the need , recommend that the City explore new funding sources to alleviate this problem . Page 3-42 3 .6 . 1 . 3-HousingServices Home Sharing : We support expansion of this program as stated in action item 2 . 12 . Page 3-44 3 .6 .2-HousingPro rams Under Study: Reverse Mortgage is a support this n concept and offer tech- ca assistance to develop and implement . Page 3-45 Non-Profit Construction : We support this in concept and offer technical assistance to develop and implement . Page 3-46 Neighborhood Housing Services : We support this in concept and offer technicaT assistance to develop and implement . Page 3-46 Limited Equity Cooperatives : We totally oppose this program and recommend you delete from the Housing Element . Limited equity cooperatives are poor investments for homeowners , do not provide any additional housing units , have poor financing prospects , and , with resale price contrrols , are a "deadend situation " for homeowners . We have consulted with REALTORS in areas which have this program , and strongly recommend that this program be dropped . With so many positive new programs to pursue , we feel it is unproductive to even consider a program with such a poor track record . Page 3-46-Mobile Home Park Assistance Program: We support this n concept and offer technical assistance to develop and implement . TECHNICAL DATA REPORT We have 2 overall new recommendations with regard to the • TechnicaT—Data Report : • Page 5---April 23 , 1990 Board of REALTORS comments ( 1 } Page 3-3 Table 8-Median Household Income : As stated in this section , an impor ant factor with respect to housing affordability is household income , therefore , to use 1979 income figures is irrelevant . Suggest you use income levels developed by Chapman College for determination of income levels as well as for determining participation in city housing programs . This information is more specific to our area and is updated uarterl therefore , it is more accurate . The County of Orange and most range County cities use Chapman data whenever legally possible . (Current Chapman figures are slightly higher than those developed by HUD . ) The success or failure of specific programs is often dependent upon having enough participants who qualify under the income criter.ial ( 2 ) Much of the information in this section duplicates information in the "Housing Element " section previously addressed ; where this occurs , our previous comments and recommendations should be applied to both sections . • • � � n • THE FOLLOWING COMMENTS WERE SUBMITTED TO CITY STAFF BY THE HUNTINGTON BEACH/FOUNTAIN VALLEY BOARD OF REALTORS ON APRIL 23, 1990 THESE COMMENTS REFERENCE THE DRAFT HOUSING ELEMENT DATED DECEMBER 1989 . THESE COMMENTS, IN THEIR ORIGINAL FORM, COMPRISE ATTACHMENT NO. 4 OF THE STAFF REPORT TO THE PLANNING COMMISSION OF MAY 1, 1990 . THIS STAFF RESPONSE TO COMMENTS IS ATTACHMENT NO. 5 OF THE ABOVE REFERENCED STAFF REPORT. COMMENTS ON DRAFT HOUSING ELEMENT 1 . COMMENT: Page 2 - 7 Financing: We suggest that in paragraph 1, line 7, the word "will" be changed to "may" . We believe that this is more accurate; over extension is not an automatic result of a variable interest rate loan. • RESPONSE: The comment is noted and this change has been made on page 2 - 7 of the document . 2 . COMMENT: SUGGESTED ADDITION. Paragraph 3 : We suggest an addition to the last line as follows : " . . . . and is exploring the implementation of a mortgage credit certificate program as well" . RESPONSE: The comment is noted and this change has been made on page 2 - 7, paragraph 4 , of the document. 3 . COMMENT: Page 2 - 9 Local Processing and Permit Procedures : We support expedited processing for all housing developments, and encourage the City to continue to seek ways to improve this service. RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision makers . • 4 . COMMENT. Page 2 - 16 , Section 2 . 3 .3 - Second Units : We believe the City should permit residential second units in all areas of the City, provided that the project meets the requirements of the authorizing ordinance. RESPONSE• Second units are defined by code as fully equipped dwelling units which are ancillary and subordinate to the principle dwelling unit located on the same lot in the R-1 zone (Section 9080 .47) . As such, second units may be allowed in any R-1 zone provided a Conditional Use Permit has been obtained. Additional information is included on page 3 - 43 of the Draft Element . Any changes to allow second units in other zones in the City can be considered during the Division 9 Review (Program No. 3 . 2) . 5 . COMMENT: Page 3 - 1, Issue #1 - Accessibility: We note that the City has only issued 4 grants in 5 years to make rental units accessible to the handicapped. We concur that better marketing of this opportunity is a positive step, but recommend that the amount of • the grant be increased to $2, 500 since $1, 500 is simply not enough money for this type of property improvement project . RESPONSE• The grant amounts for this program are established in the CDBG budget . The intent of this program is to provide funding for modifications housing units for the handicapped. Although grant amounts are small, analysis suggests active marketing of this grant program may increase the number of program applicants . 6 . COMMENT: Page 3 - 2 , Issue #2 - Adequate Provision: We recommend that the multi-family zoning ordinance be revised to reduce required recreation space and common open space in smaller projects in order to encourage the development of these projects . RESPONSE: This comment is noted and addressed in Policies Nos . 8 and 9 (pages 3 - 10 and 3 - 11) , and Program Action No. 27 (page 3 - 13) . 7 . COMMENT• Page 3 - 4-, Issue #5 - Preserving Affordability Program #1 : We • suggest that this program applies to rental projects only and request that the word "rental" be inserted to clarify. Staff Report 5/l/90 -2- (5559d) -- .S b • RESPONSE: This program states : "Oversee the continued affordability of low and moderate income units produced with tax exempt financing" Tax exempt financing is a public funding mechanism that may apply to rental and for-sale housing units . Because monies are derived from public funds, state law provides that housing affordability, regardless of tenure, will be maintained for a number of years . 8 . COMMENT: Page 3 - 11, Section 2 . 0 Programs 2 . 1 Action Item: We agree that the City should explore involvement in the Mortgage credit Certificate program and would be pleased to offer technical assistance in the development and implementation of this program. RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision makers . 9 . COMMENT: • Page 3 - 12 , 2 . 5 Action Item: Comment: We are pleased to see that the City intends to pursue additional Section 8 vouchers, but note that many who qualify for assistance must relocate to neighboring cities to find housing---thus pointing out the continuing need for affordable rental housing units . RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision makers . 10 . COMMENT: Page 3 - 13 , 2 . 7 Action Item: We support review of development standards to determine which ones can be relaxed in order to reduce housing costs . RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision makers . • Staff Report 5/l/90 -3- (5559d) _' SC. 11 . COMMENT: • Page 3 - 13 , 2 . 8 Action Item: We support development of fast track processing of all housing protects, and suggest that the city also explore other ways to facilitate housing projects during the construction phase, such as timely and coordinated inspections, etc. , in order to reduce the overall costs of housing . RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision makers . 12 . COMMENT; Page 3 - 14 , 2 . 12 action Item: We support the development of a pilot project to match residents of various ages as room mates, and inclusion of Project Self-Sufficiency participants . RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision makers . • 13 . COMMENT: Page 3 - 15 , 2 . 13 Action Item: We support in concept the development of a shared equity program for first-time homebuyers, and would be pleased to offer technical assistance to the City to develop and implement this program. RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision makers . 14 . COMMENT: Page 3 - 16, 2 . 16 Action Item: we support use of specific plans to promote balance of housing and open space and the suggestions in item 2 . 16 to reduce the per-unit cost of housing . RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision makers . • Staff Report 5/1/90 -4- (5559d) s� f • 15 . COMMENT: SUGGESTED ADDITION: We recommend and additional action item as follows : "sell surplus city land at below-market rates to non-profit housing corporations to building low-income rental housing . " RESPONSE• This comment is noted. Investigation of development incentives, including those affecting land costs to developers are included in Program action 2-2 on page 3 - 12 of the Draft Element . 16 . COMMENT: Page 3-22 , 4 . 0 Programs : Many Huntington beach homeowners and owners of rental properties are experiencing problems with subsidence. We believe this will lead to deterioration of properties and should be among the problems addressed in several of the action items in this section on Preserving Housing and Neighborhoods . Appropriate action items which could address this issue include 4 .2, 4 .4, 4 . 5 . RESPONSE: • Individuals obtaining City rehabilitation loans under existing rehabilitation programs may elect to use these funds for subsidence problems . 17 . COMMENT: In addition, since the rehabilitation monies are underutilized, can the target areas eligible for these funds be expanded? RESPONSE: Rehabilitation loan monies are available to all homeowners within the six Community and Neighborhood Enhancement Areas identified within Appendix B of the Draft Element . The boundaries of these areas are established on the basis of Federal and State income guidelines and cannot be expanded by the City. 18 . COMMENT: Page 3-23 , 4 . 8 Action Item: We support in concept, but would be very concerned if the proposed property maintenance inspections were implemented. in such a manner as to violate the property rights of owners or tenants . We would like additional information on this program. • Staff Report 5/1/90 -5- (5559d) _ S/Q� RESPONSE: Please see pages 3-40 and 3-41 of the Draft Element for an explanation of this program. The intent of the program is to protect property owners rights and maintain property values by preventing neighborhood deterioration. 19 . COMMENT: Page 3-25. Section 5 . 0 Policies : We believe that policies requiring "continued affordability" should apply to rental units only. We strongly oppose "continued affordability" , i .e. resale price controls, on for-sale housing . RESPONSE. These policies refer to housing produced with the participation of public funds . Under State Housing Law, publically funded housing projects are required to remain affordable for a specified period of time depending on the funding source. Neither State or Federal Law distinguishes tenure type for publically funded projects . To specify rental units only, would be contrary to law and limit developer ' s options . 20 . COMMENT: • SUGGESTED ADDITION: We also recommend an additional goal as follows : Promote and encourage the development of affordable for-sale units by granting increased density to reduce the overall costs of the entire project---thus preserving the long-term affordability of all of the units . RESPONSE: This comment is noted and addressed in Policy 3 (page 3-10) , and Program Action 2 .2 (page 3-12) of the Draft Element . Increased densities relative to the density bonus program will assist in the reduction of development costs for the project. In addition, State Law does not distinguish housing tenure relative to density bonus programs . 21 . COMMENT: Page 3-25, 5 . 1 Action Item: We support this program as it relates to rental housing only. To this end, we recommend deletion of the words " . . . .and financing mechanisms" because that appears to apply to ownership units . • Staff Report 5/l/90 -6- (5559d) • RESPONSE: Under State Housing Law, affordable units produced with public funding are required to remain affordable for a specified length of time, depending on funding source. As such, the City is obligated to develop a monitoring program to ensure continued affordability. State Housing Law does not distinguish between tenure types for affordable housing units . 22 . COMMENT: Page 3-28, 6 . 0 Policies : While we support energy conservation, we totally oppose retrofit ordinance triggered by the sale or improvement of the property. This program is discriminatory and penalizes people who sell or rehabilitate. This is contrary to earlier goals encouraging neighborhood preservation! The city should develop incentives to encourage property owners to voluntarily participate in energy-conservation programs . RESPONSE: The referenced policy states that the development of retrofit ordinances should be be considered. This policy addresses one area of energy conservation and it is consistent with other • elements of the General Plan. Although this policy may be perceived by some as penalizing home sellers, it may also be perceived by others as benefiting home buyer. 23 . COMMENT: Page 3-36. Section 3 . 6 . 1. 1-Density Bonus Incentives : We believe that density bonuses as described (when they apply to only a few units in an otherwise market rate development) can be proven to be ineffective as in providing long opportunities for affordable housing . We recommend that, when density bonuses are granted, they be used to reduce the overall costs of the development, thereby increasing the number of units so that the entire project is more affordable. We are opposed to having two sets of housing wherein one homebuyer is in effect subsidizing another. We are opposed to deed restrictions on ownership housing . RESPONSE: Density bonus incentives are intended to reduce the development cost for housing projects with an affordable component . These incentives apply to the entire project thereby reducing development costs for all of the units . Consequently, the public contribution embedded within the City incentives in effect subsidizes all of the housing units to some degree, including those that will be rented or sold at a market rate. • Staff Report 5/1/90 -7- (5559d) 24 . COMMENT: • Page 3-38, Affordable Housing Monitoring: We can support this if it applies to rental housing only! Please clarify. RESPONSE: State Housing Law does not distinguish between tenure types for affordable housing units . Affordable units produced with public funding are required to remain affordable for a specified length of time, depending on funding source. As such, the City is obligated to develop a monitoring program to ensure continued affordability. 25 . COMMENT: Shared Equity Program: We support in concept and offer our assistance to develop and implement. RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision-makers . 26 . COMMENT: • Pages 3-38 - 3-41, 3 . 6 . 1.2 Assistance to Existing Units - Subsidence: Recommend that existing rehabilitation funds be made available, where possible, to assist property owners dealing with subsidence. If existing funds are inadequate to meet the need, recommend that the City explore new funding sources to alleviate this problem. RESPONSE: Individuals obtaining city rehabilitation loans under existing rehabilitation programs may elect to use these funds for subsidence problems . 27 . COMMENT: Page 3-42 , 3 . 6 . 1 . 3 - Housing Services, Home Sharing: We support expansion of this program as stated in action item 2 . 12 . RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision-makers . Staff Report 5/l/90 -8- (5559d) • 28 . COMMENT: Page 3-44 , 3 6 . 2-Housing Programs under Study: Reverse Mortgage Program: We support this in concept and offer technical assistance to develop and implement. RESPONSE: This comment is noted and included in the .final record of the project for review and consideration by appropriate decision-makers . 29 . COMMENT: page 3-45 Non-Profit Construction: We support this in concept and offer technical assistance to develop and implement . RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision-makers . 30 . COMMENT: • Page 3-46 Neighborhood Housing Services : We support this in concept an offer technical assistance to develop and implement. RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision-makers . 31. COMMENT: page 3-46 Limited Equity Cooperatives : We totally oppose this program and recommend you delete from the Housing Element . Limited equity cooperatives are poor investments for homeowners, do not provide any additional housing units, have poor financing prospects, and, with resale price controls, are a "deadend situation" for homeowners . We have consulted with REALTORS areas which have this program, and strongly recommend that this program be dropped. With so many positive new programs to pursue, we feel it is unproductive to even consider a program with such a poor track record. RESPONSE: Limited equity cooperatives are included within the Draft Element as a possible housing mechanism. The Draft states that • the City could maintain information on this housing technique. Should reference material be requested, information detailing advantages and disadvantages could be disseminated. Staff Report 5/l/90 -9- (5559d) 32 . COMMENT: • Page 3-46-Mobile Home Park Assistance Program: We support this in concept an offer technical assistance to develop and implement . RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision-makers . 33 . COMMENT: Page 3-3 Table 8-Median Household Income: As stated in this section, an important factor with respect to housing affordability is household income, therefore, to use 1979 income figures is irrelevant . Suggest you use income levels developed by Chapman College for determination of income levels as well as for determining participation in city housing programs . This information is more specific to our area and is updated guarterly, therefore, it is more accurate. The County of Orange and most Orange county cities use Chapman data whenever legally Possible, (Current Chapman figures are slightly higher than those developed by HUD. ) The success or failure of specific programs is often dependent upon having enough participants who • qualify under the income criteria ! RESPONSE: Table 8, page 3-3 of the Technical Data Report (Appendix B of the Draft Element) , utilizes data from the 1980 Census Report to indicate median household income and family income for the City and surrounding areas . Estimated income information from 1988 is also presented. The purpose of this information is to provide the City with data on City income characteristics, to discuss the household income changes over time and to identify trends as they relate to housing. Income estimates for 1988 were obtained from a local firm. The U.S. Department of Housing and Urban Development (HUD) income guidelines are utilized by the City to determine qualifying households for federal programs . There are four HUD income categories . These categories are based on percentages of the Orange County Median Income which is revised annually. In January 1990, the Orange County Median income was $49, 100 for a household of four persons . HUD income categories for a household of four is detailed below. is Staff Report 5/1/90 -10- (5559d) � y 0 • HUD Income Categories Very Low Low Moderate Upper up to 50% 51%-73% 74%-120% +120% of County of County of County of County Median Median Median Median or or or or $24 , 550 $35 , 700 $58,920 +$58,920 In addition to federal projects, HUD income guidelines are required for programs using state funding including redevelopment set-aside funds and other sources of public funding. With one exception, all City housing programs are funded using federal, state, and other public funds thereby, requiring the use of HUD income guidelines . Finally, future affordable housing needs are calculated by SCAG using HUD income guidelines . Employing other income guidelines for programs funded by other monies would necessitate translating income categories derived from alternative guidelines back to HUD standards for accountability towards the City' s RHNA requirement . • 35 . COMMENT: Much of the information is this section duplicates information in the "Housing Element" section previously addressed; where this occurs, our previous comments and recommendations should be applied to both sections . RESPONSE: This comment is noted and the appropriate changes have been made . SH:R.EL:kj l • Staff Report 5/1/90 -11- (5559d) G E ua��on f�eacl(c A PR 71990 Cjianr6er of�onrnrerce DEPaa-rNIrraT of April 25 , 1 990 r-OMMUNITY DEVEL OPh%i NT ?LAiINMG DIVISIOPJ Ms . Geri Ortega , Chairwoman and Planning Commissioners City of Huntington Beach 2000 Main Street Huntington Beach , CA 92648 Re : Housing Element Dear Geri : The Huntington Beach Chamber of Commerce Community Development Committee , which is comprised of members in the development industry, received a presentation on the proposed Housing Element revision from planning staff . We have reviewed the ordinance and would like to make the following comments . We recommend that the city use the income figures published by Chapman College and only rely on HUD figures where absolutely required . We believe the Chapman College estimates are more current than HUD estimates and therefore does more to encourage development of affordable housing . Furthermore , we understand the Chapman College estimates are used by the County of Orange and several other Orange County cities , We wish to point out that due to the high cost of land in Orange County and in Huntington Beach in particular , it is difficult , if not impossible to build affordable housing at below the 80% range . There is little doubt that there is a need for affordable housing in Huntington Beach . However in order to accomplish this it is necessary for the city to modify its standards so as to realistically deal with the issue . We would like to bring to your attention that a significant number of residents with incomes between the 120- 150% of median family income range are not being addressed . Families within this range earn too much to qualify for affordable housing and yet their income is too low for market priced units . Finally , we would encourage and welcome the opportunity to meet with city representatives on a regular basis to review and find ways to implement the city ' s housing goals in a way which is mutually beneficial . _"13 Main Ji'c2i.sidle 3: Huntington 6zacn.CA 92648 714,536•5858 Ms . Geri Ortega , Chairwoman and Planning Commissioners Housing Element Revisions Page 2 Once again , thank you for the opportunity to comment on the proposed City of Huntington Beach Housing Element Update . Please continue to keep us informed -as the element proceeds through the public hearing process . Si er ly , lard A . Harlow Chairman DH: kb Page 5 - Council /Agency Minutes - 5/21/90 r ty Council) PUBLIC HEARING CONTINUED FOR STUDY SESSION - DRAFT 1989 ING ELEMENT UPDATE FOR THE CITY OF HUNTINGTON BEACH. n RESOLUTION NO. 6/NEGATIVE DECLARATION NO, 90-11 (440.50)Mayor announced that this was the day and hour set for a public hearing to ider the following: SUBJECT: Draft 1989 Housing Element Update of the City of Huntington Beach General Plan APPLICANT: City of Huntington Beach LOCATION: City-wide Z NE: All Districts RE T: Rev.iew and adopt Housing Element which conforms with new State mandated requirements . ENVIRONMENTAL STATUS: Subject document establishes City policy for housing issues and is assessed under Negative Declaration No. 90-11 . Individual projects implementing these policies will be subject to environmental assess- ment at the time of application. Legal notice as provided to the City Clerk' s Office by staff had been mailed, published, and posted. No communications or written protests were received on I` the matter. The City Clerk presented Resolution No. 6146 for Council adoption - "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING HOUSING ELEMENT AMENDMENT NO. 89-1 TO CITY'S GENERAL PLAN AND NEGATIVE DECLARATION NO. 90-11 . The Community Development Director had distributed to Council a communication entitled Errata to 1989 Draft Housing Element (Revised May 1990) . Scott Hess , Senior and Advanced Planner, presented the staff report. The. Mayor declared the public hearing open. Jim Miller, representing Shelter for the Homeless , stated that SRO' s (single room occupancy units) were needed, and he thanked the staff for their atten- tion to the housing needs. He stated his desire to work with the city to help alleviate any problems. Tom Van Tuyl , Huntington Beach/Fountain Valley Board of Realtors President, stated concerns about the 1989 Housing Element Update. Kirk -Kirkland stated he believed the energy conservation elements of the hous- ing plan placed an onerous burden on the seller of property and spoke in opposition to the plan. Jan Shomaker spoke regarding her concerns about the Housing Element--the expansive soil problems in the northwest part of Huntington Beach where build- ings are constructed on peat moss and the drawbacks of a limited equity program. 0 U>°r �'� J Page 6 - Council /Agency Minutes - 5/21 /90 There being no one present to speak further on the matter and there. being no further protests filed, either oral or written, the hearing was closed by the Mayor. Counciiman Silva presented an extensive list of concerns regarding the 1989 Hous ing Element Update that he would like addressed. A motion was made by MacAllister, seconded by Green, to continue the item regarding the 1989 Housing Element Update for the City of Huntington Beach for a study session and to set a new public hearing. The motion carried by the following roll call vote: AYES: MacAllister, Winchel1 , Green, Mays, Silva NOES: None ABSENT: Bannister, Erskine The City Administrator stated that the new public hearing would be scheduled on the Housing Element following further review by the Council . (City Council) OPEN PUBLIC HEARING CONTINUED TO 7/16/90 - DIRECTION GIVEN TO STAFF RE: SEAPOINT AVE - PRECISE PLAN OF STREET ALIGNMENT NO. 89-4/COASTAL DEVELOPMENT PERMIT NO. 89-46 - NEGATIVE DECLARATION NO, 89-63 - (ESTABLISH PRECISE ALIGNMENT FOR SEAPOINT AVENUE AND A PORTION OF GARFIELD AVENUE) - ORDINANCE NO. 3045 (800.90) The Mayor announced that this was the day and hour set for a public hearing to consider the following: APPLICATION NUMBER: Precise Plan of Street Alignment No. 89-4/Coastal Development Permit No. 89-46/Negative Declaration No. 89-63 APPLICANT: City of Huntington Beach LOCATION: Precise plan of Seapoi nt Avenue south to Pacific Coast Highway and north to Garfield Avenue and alignment of Garfield Avenue west of Edwards Street. ZONE: Various zoning districts (Industrial /Residential /Recreation/Open Space) . REQUEST: Approve Precise Plan of Street Alignment of Seapoint Avenue and an extension of Garfield Avenue. : ENVIRONMENTAL STATUS: Covered by Negative Declaration No. 89-63. COASTAL STATUS: APPEALABLE This project is in the appealable portion of the coastal zone. Under the provisions of the Huntington Beach Ordinance Code, the action taken by the City'Council is final unless an appeal is filed to the California Coastal Commission by an aggrieved party. Said appeal must be in writing and must set forth in detail the actions and grounds by and upon which the applicant or interested party deems himself aggrieved. An aggrieved person may file an appeal within ten (10) working days, pursuant to the Public Resources Code, in writing to: California Coastal Commission, 245 W. Broadway, Suite 380, POB 1450, Long Beach, California 90801-1450 The Coastal Commission review period will commence after the City Council Action. Appli- .cants will be notified by the Coastal Commission as to the date of the conclusion of the Coastal Commission review. Applicants are advised not to begin construction prior to that date. ` NOTICE OF PUBLIC HEARING PRECISE PLAN OF STREET ALIGNMENT NO. 89-4/ COASTAL DEVELOPMENT PERMIT NO. 89-46/ NEGATIVE DECLARATION NO. 89-63 (Continued from the May 21, 1990 City Council Meeting) Establi-sh precise alignment for Seapoint Avenue and a portion of Garfield Avenue NOTICE IS HEREBY GIVEN that the Huntington Beach City Council will hold a public hearing in the Council Chamber at the Huntington Beach Civic Center, 2000 Main Street, Huntington Beach, California, on the date and at the time indicated below to receive and consider the statements of all persons who wish to be heard relative to the application described below. DATE/TIME: Monday, July 16 , 1990, 7 : 00 PM APPLICATION NUMBER: Precise Plan of Street Alignment No. 89-4/ Coastal Development Permit No . 89-46/Negative Declaration No. 89-63 (Continued from May 21, 1990 City Council Meeting) APPLICANT: City of Huntington Beach LOCATION: Precise plan of Seapoint Avenue south to Pacific Coast Highway and north to Garfield Avenue and alignment of Garfield Avenue west of Edwards Street (see map) . ZONE: Various zoning districts (Industrial/Residential/ Recreation/Open Space) . REQUEST: Approve precise plan of street alignment of Seapoint Avenue and an extension of Garfield Avenue. ENVIRONMENTAL STATUS: Covered by Negative Declaration No. 89-63 . COASTAL STATUS: APPEALABLE (See Below) PUBLIC HEARING PROCEDURE: (1) Staff Report; (2) Public Hearing; (3) Planning Commission Discussion; and (4) Planning Commission action. This project is in the appealable portion of the coastal zone. Under the provisions of the Huntington Beach Ordinance Code, the action taken by the City Council is final unless an appeal is filed to the California Coastal Commission by an aggrieved party. Said appeal must be in writing and must set forth in detail the actions and grounds by and upon which the applicant or interested party deems himself aggrived. I• NOTICE OF PUBLIC HEARING (Continued) An aggrieved person may file an appeal within ten (10) working days, pursuant to Section 30603 of the Public Resources Code, in writing to : California Coastal Commission 245 W. Broadway, Suite 380 POB 1450 Long Beach, California 90801-1450 (213) 590-5071 The Coastal Commission review period will commence after the City Council Action. Applicants will be notified by the Coastal Commission as to the date of the conclusion of the Coastal Commission review. Applicants are advised not to begin construction prior to that date. ON FILE: A copy of the proposed request is on file in the Community Development Department, 2000 Main Street, Huntington Beach, California 92648, for inspection by the public. A copy of the staff report will be available to interested parties at City Hall or the Main City Library (7111 Talbert Avenue) after May 18, 1990 . Connie Brockway City Clerk (5339d-6,7) RA-01-CZ I II r GAR f L cc-cz 4-0-CZ / _ -- -- •rr••CelvC I—O M 2-0-CZ rs :/ eL�:a R _ 'f�: ° ROS 0- o ,aea F •,�•,v• Is uo.00 65 e nv+'or'[ ,\i • � uar ,.r[u �CC•CZ � •0 ,o. •-, a _. 1. r _-eN ar—�e s•or eo•[ _ �� � 1 � ,4i '•,°>+h. •°o,. �/:., � �+-'L.�Z-'•u.''..... ,ae r`. [ cz R4-29-0,:vywti• . + ..is `'' 4 � CjC RO {r J qA6 C. [S/ 'b ,, •.J fr,.o•ooi";1 �;',' ,1�, $',: •• ,.. y `s• ,f,< r :•O " ..RI.01 ROS1r, �A9s 3-17-0-CZ '; R2 PO C A° ROS-0 I� vo R2-PD-0•C7 )) [ q R2-PD-0-C p... ; , %�?�c�:<i: :: \•;L,, k C s �\^ v^, 'o ;RZ-PD-0-CZ \ PPSA89-04/CDP89-46/ND89-63 " i'??`„"Jy�ef9rltFG HUNTINGTON BEACH HUNTINGTON BEACH PLANNING DIVISION CITY OF HUNTINGTON BEACH • '`' INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To From Michael T. Uberuaga Mike Adams City Administrator Director Subject Date HOUSING ELEMENT STUDY July 12, 1990 SESSION OUTLINE For the July 16, 1990, City Council Study Session regarding the Draft Housing Element, there are three communications as follows : 1. Housing Element Study Session Memo dated June 25, 1990, which includes a listing of all policies and programs included within the document and response to Council Member ' s comments and the Huntington Beach/Fountain Valley Board of Realtors Comments . (Distributed June 25, 1990) 2 . Housing Element Study Session Memo dated July 11, 1990, which includes a discussion on the State requirements, legal implications, energy conservation (Retrofit Ordinance) , and HUD income figures vs . Chapman College figures . The memo also includes an attachment of the Housing,_ Element policies and programs with reference to page numbers. (Distributed July 11, 1990) 3 . Housing Element Study Session - Affordable Housing Memo dated July 12, 1990, which contains a discussion of Affordable Housing issues within the City of Huntington Beach. (Attached) This information will be presented by staff at the Study Session as outlined on the attached Draft Housing Element Study Session outline. ATTACHMENT 1. Outline for July 16, 1990 City Council Study Session . 2. Housing Element Study. Session - Afforable Housing Memo dated July 12, 1990 . MA:SH:/lp (6404d) /0 OUTLINE DRAFT HOUSING ELEMENT CITY COUNCIL STUDY SESSION (July 16, 1990) I . INTRODUCTION (Howard Zelefsky) II . HOUSING ELEMENT STUDY SESSION MEMO DATED JULY 11, 1990 A. State Requirements (Karen Warner-Cotton/Beland/Associates) B. Legal Implications (Warner) C. Energy Conservation (Scott Hess) D. HUD Income Figures vs . Chapman College (Warner) III . HOUSING ELEMENT STUDY SESSION MEMO DATED JULY 12, 1990 A. Affordable Housing Policy (Zelefsky) 1 . RHNA Requirements (Warner) 2 . Affordable Housing Mechanisms (Ruth Lambert) B. Citywide Affordable Housing Projects (Hess) C. Monitoring Mechanisms (Steve Kohler) IV. HOUSING ELEMENT STUDY SESSION MEMO DATED JUNE 25, 1990 A. List of Housing Element Policies & Programs (Lambert) B. Response to Comments (Lambert) V. CONCLUSIONS (Zelefsky) (6409d) CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To Michael T. Uberuaga From Mi Adams, Director City Administrator Community Development Subject HOUSING ELEMENT STUDY SESSION Date July 12, 1990 AFFORDABLE HOUSING At the City Council Study Session on July 2, 1990, the Council requested staff to prepare a discussion paper relative to affordable housing in Huntington Beach. Specifically, the following issues were raised. 1. What is our policy on trying to obtain affordable housing units? 2. Which development projects have affordable units? 3 . What are the monitoring mechanisms to ensure affordability? ISSUE 1 : When the City Council adopted the 1984 Housing Element it contained numerous policies and programs (see Section 8 . 0 1984 Housing Element) to facilitate affordable housing in the City. Many of the programs have been carried over to the 1989 Housing Element update. Because of new State requirements the current Housing Element goes further in quantifying what our affordable housing needs are. The staff has attempted to implement the goals of the 1984 Housing Element (attached) by recommending affordable housing conditions on projects to provide a percentage of their units for low and moderate income households. However, most of these projects were relieved of the affordable housing condition by the Planning Commission. Recently, the Commission has become more comfortable with affordable housing because of new mechanisms of enforcement. The staff has continued to look for opportunities to add affordable units to the housing stock. This is most evident on projects which are seeking to change their general plan land use designation to residential . We have also apprised developers of State law requirements for low and moderate income housing in the coastal zone (Section 65590) which states : July 12, 1990 ' Page Two 65590. (a) In addition to the requirements of Article 10 . 6 (commencing with Section 65580) , the provisions and requirements of this section shall apply within the coastal zone as defined and delineated in Division 20 (commencing with Section 30000) of the Public Resources Code. Each respective local government' shall comply with the requirements of this section in that portion of its jurisdiction which is located within the coastal zone. (b) The conversion or demolition of existing residential dwelling units occupied by persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code, shall not be authorized unless provision has been made for the replacement of those dwelling units with units for persons and families of low or moderate income. Replacement dwelling units shall be located within the same city or county as the dwelling units proposed to be converted or demolished. The replacement dwelling units shall be located on the site of the converted or demolished structure or elsewhere within the coastal zone if feasible, or, if location on the site or elsewhere within the coastal zone is not feasible, they shall be located within three miles of the coastal zone. The replacement dwelling units shall be provided and available for use within three years from the date upon which work commenced on the conversion or demolition of the residential dwelling unit. In the event that an existing residential dwelling unit is occupied by more than one person or family, the provisions of this subdivision shall apply apply if at least one such person or family, excluding any dependents thereof, is of low or moderate income. (d) New housing developments constructed within the coastal zone shall, where feasible, provide housing units for persons and families of low or moderate income, as defined in Section 50093 of the Health and Safety Code. Where it is not feasible to provide these housing units in a proposed new housing development, the local government shall require the developer to provide such housing, if feasible to do so, at another location within the same city or county, either within the coastal zone or within three miles thereof. In order to assist in providing new housing units, each local government shall offer density bonuses or other incentives, including, but not limited to, modification of zoning and subdivision requirements, accelerated processing of required applications, and the waiver of appropriate fees . The staff ' s most specific direction on affordable housing is from the programs outlined in the Housing Element. The current Housing Element calls out specific requirements for each income group. ISSUE 2: Which projects have affordable units? Table 3-5 of the Housing Element summarizes the projects which have affordable housing units (see Attachment 1) . >; July 12, 1990 Page Two ISSUE 3 : How are projects monitored for compliance with affordable housing conditions? Many of the projects listed in Attachment 1 have not been monitored for compliance with affordable housing standards. Until recently, their has been poor coordination among the responsible departments . However, it should be noted that many of the density bonus units granted for affordable housing had the same rent structure as market rate units due to the extraordinary high median income in Orange County. At the time, these units did not require a monitoring program for compliance. Today, the staff with the assistance of the Attorney' s Office has developed general methods to ensure compliance. 1. Apartment projects which have Density Bonus Units : - The City enters into an agreement with the developer which runs with the land ensuring affordability for a fixed period of time. 2 . For Sale Units using housing set-a-side funds : - The Redevelopment Agency can hold a second trust deed to ensure that units remain affordable 3 . - First time buyer program: - The staff will analyze the escrow documents to ensure that the buyers meet the criteria for an affordable housing unit. HZ:kjl Attachments: 1. List of affordable housing projects 2 . Affordable Housing goals and programs from 1984 Housing Element (6391d) TABLE 4 AFFORDABLE HOUSING DEVELOPMENTS CITY OF HUNTINGTON BEACH: 1984-1989 NAME LOCATION UNITS TOTAL/LOW MOD Brisas Del Mar 409 Utica 44/8 Corona 7916 Stark 8/1 7924 Stark 8/1 7891 Holt 8/1 7901 Holt 8/1 Emerald. Cove Talbert & Jolly Lane 164/164 (seniors) Gustine Yorktown & Huntington 21/4 Harbor Gateway Warner & Green 102/31 Hartfelter Newland & Slater 8/1 Huntington Bayshore Lake & Atlanta 159/34 Huntington Village 16171 Springdale 114/27 (seniors) Ratsui 5081 Dunbar 6/1 Rivermeadows 8945 Rivermeadows 152/31 Seabridge Villas 20251 Cape Coral Lane 344/69 Stellrecht 16032 Springdale 61/12 Villa Corsica 19th & Walnut 18/4 Waldman 17230 Elm 7/1 TOTAL 1 232 391 Program: Create and maintain an inventory of sites potentially suitable for affordable housing and refer these to private developers. Accomplishments: The City's Economic Development Department has developed an inventory of potential sites for affordable housing, including vacant .lands, park and school sites. In addition, the Planning Department conducted a comprehensive vacant lands inventory in April 1988 which can be utilized to identify additional sites for afforable housing. 3-5 i v /,Al 6r � 7"1-��l/7- 8.0 GOALS, POLICIES, AND PROGRAMS The City of Huntington Beach has adopted three goals for its housing program which are consistent with State and Regional housing policies. These goals are: 1. The attainment of decent housing within a satisfying living environment for households of all socioeconomic, racial, and ethnic groups in Huntington Beach. 2. The provision of a variety of housing opportunities by type, tenure, and cost for households of all sizes throughout the city. 3. The development of a balanced residential environment with access to employment opportunities, community facilities, and adequate services. In order to progress toward the attainment of these goals, the City has committed itself to specific policies and programs. The policies are organized around five issue areas which are identified by the California Department of Housing and Community Development as important priorities in addressing local housing problems. This section presents a discussion of the problems inherent in each of the issue areas, followed by policies adopted by the City to resolve these problems. The programs intended to effect their solution then are discussed, including anticipated impacts, responsible agencies, financing, and the time frame for completion of each program. 8.1 ACCESSIBILITY Providing housing opportunities for all households regardless .of race, color, religion, sex, family size, marital status, national origin, ancestry, age or physical disability is an essential element of a sound housing program. In order to assure non-discrimination in housing, the City contracts with the Orange County Fair Housing Council which investigates complaints of discrimination because of race, ethnicity, marital status, or sex. The Fair Housing Council also handles problems with evictions, rent increases, substandard housing conditions, and disputes regarding deposit returns, as well as arbitrating landlord-tenant conflicts. � ���'�V 7— 67 One problem needing attention is that of handicapped and elderly persons whose access to decent housing may be prevented by architectural barriers. Policies and actions addressing these special needs have been included under accessibility because it is felt that the lack of assistance to these groups may constitute a subtle, if unintended, form of housing discrimination. 8.1.1 Policies In order to assure accessibilty to decent housing for all, the City of Huntington Beach shall: • Promote fair housing practices throughout the city. • Promote housing which meets the special needs of handicapped and elderly persons. • Encourage the provision of adequate numbers of housing units to meet the needs of families of all sizes. 8.1.2 Programs 8.1.2.1 Action: Utilize the services of the Orange County Fair Housing Council. Anticipated Impact: All complaints of discriminatory practices in housing within the city will receive .attention. In addition, OCFHC will provide counseling in landlord-tenant disputes, special assistance for ethnic minority and female-headed households (which includes escort services to locate adequate housing), bilingual housing literature and video-tape presentations, day-care services, and housing assistance counseling. Responsible Agencies: Huntington Beach HCD Financing:. The City will contribute to the Orange County Fair Housing Council: $20,000 in CDBG funds have been approved for its support this year. Schedule: Ongoing 8.1.2.2 Action: The City will make available Redevelopment Agency-owned property witfin the Talbert-Beach redevelopment area for the construction of senior citizen. housing. Anticipated Impact: Aid in production of .164 units for senior citizen housing. Responsible Agencies: Huntington Beach HCD/Redevelopment Agency Financing: $4.6 million Tax Exempt Schedule: 1985 Financing $340,000 CDBG Loan 8.1.2.3 Action: Develop City standards to implement new state and federal laws for access-and adaptability for the physically handicapped. Anticipated Impact: More locational choice for the physically handicapped due to an increase in the supply of suitable rental units. 68 Responsible Agencies: Huntington Beach HCD and Department of Development Services. . Financing: Department Budgets Schedule: 1984-1985 8.1.2.4 Action: Maintain a directory of accessible housing for handicapped persons, and provide referral services. Anticipated Impact: Assistance to handicapped persons in locating housing. Responsible Agencies: Huntington Beach HCD and the Dayle MacIntosh Center Financing: No cost to the City Schedule: Ongoing 8.1.2.5 Action: Provide grants to owners of rental housing for modifications necessary to make units accessible to and suitable for the physically disabled. Anticipated. Impact: The provision of an increased number of rental units suitable for physically disabled persons. Responsibile Agencies: Huntington Beach HCD and the Dayle Macintosh Center Financing: $ 1500/unit grant from CDBG funds Schedule: Ongoing 8.1.2.6 Action: As part of the ongoing rehabilitation program; fund rehabilitation loans which include improvements to make housing accessible to handicapped persons within designated neighborhoods. Anticipated Impact: An increased amount of locational choice for the physically disabled. Responsible Agencies: Huntington Beach HCD Financing: CDBG funds (see Section 8.4.2.3) Schedule: Ongoing 8.2 ADEQUATE PROVISION Adequate provision for the housing needs of all economic segments of the community is an issue of the highest priority in Huntington Beach. For reasons previously discussed, it appears unlikely that market forces alone will produce enough housing that is affordable to low and moderate income households to meet expected needs. Since decent housing for all.is important to the welfare of the entire city, it is particularly important.to address this need through the use of those public powers which impact housing. 69 I `i 8.2.1 Policies To ensure adequate provision of housing for all economic segments of the community, the City of Huntington Beach shall: • Utilize developer agreements and density bonuses where feasible to encourage the production of low and moderate income housing. • Take advartage of existing infrastructure and public improvements to provide additional affordable housing by allowing second units in single f amily zoning districts. • Encourage mixed-use projects containing residential and non-residential uses which can take advantage of shared land costs to reduce the costs of land for residential uses. • Promote adoption of development standards which reduce housing costs, • Continue to expedite the permit process for residential projects • Undertake economically feasible programs to provide for housing throughout the community to meet the needs of low and moderate income households. • Provide the management and personnel resources necessary to carry out identified housing programs and responsibilities. • Continue and expand utilization of Federal and State housing assistance programs. • Encourage the participation and financial commitment of private entities in attaining housing goals • Encourage the provision and continued availability of a range of housing types.throughout the community, with variety in the number of rooms and level of amenities. • Promote the availability of sufficient rental housing stock to afford maximum choice of housing type for all economic segments of the community. • Encourage the retention of adequate numbers of mobile homes and investigate areas for potential new mobile home zoning. • Encourage the provision of alternative housing through replacement housing and/or relocation for low or moderate income households displaced by public or private developments. • Ensure that any adverse impacts are minimized when increasing densities or relaxing standards in order to provide for low and moderate income housing. • Continue to enforce the mobile home conversion ordinance. 70 8.2.2 Programs 8.2.2.1 Action: Continue to provide tax-exempt single family mortgage revenue bonds .to provide below market rate financing for moderate income first-time buyers. Antici2ated Impact: Make a greater share of housing stock available to first4ime buyers. Responsible Agencies: HCD Financing: Huntington Beach sale of mortgage revenue bonds chedule: Ongoing 8.2.2.2 Action: Consider the feasibility of permiting a waiver or reduction of development fees for projects participating in an affordable housing program. Anticipated Impact: If feasible, such an amendment could be expected to decrease tFie cost of housing. Responsible Agencies: Department of Development Services Financing: Department budget Schedule: 1985 J 8.2.2.3 Action: Provide consultation and technical assistance to aid private developers in expanding housing opportunities. Anticipated Impact: Increased housing choice and more affordable housing. Responsible Agencies: Department of Development Services and Huntington Beach-HCD Financing: Department administrative budgets chedule: Ongoing 8.2.2.4 Action: Initiate an outreach campaign to solicit participation of private developers in affordable housing programs; maintain a roster of interested firms. Anticipated Impact: The production of affordable housing. Responsible Agencies: Huntington Beach HCD Financing: HCD Administrative Budget chedule: Ongoing 8.2.2.5 Action: Continue to contract with the Orange County Housing Authority to administer the Section 8 Housing Assistance Program and any successor programs. 71 i Anticipated Impact: Maintenance of the current level of assisted housing participation in the city. Responsible Agencies: Huntington Beach HCD and the Orange County Housing Authority. Financing: HCD Administrative fuids/OCHA Schedule: Ongoing 8.2.2.6 Action: Contract with the Orange County Housing Authority to screen and verify incomes of potential participarts in housing programs. Anticipated Impact: Ensure that recipients of affordable housing are qualified for such-housi ng. Responsible Agencies: Huntington Beach HCD/OCHA Financing: HCD Budget Schedule: Ongoing 8.2.2.7 Action: Review development standards to determine which ones can be relaxed in order to reduce housing cost; process appropriate code revisions. Anticipated Impact: Reduction in the cost of housing. Responsible Agencies: Department of Development Services Financing: Department Budget Schedule: 1985 8.2.2.8 Action: Continue to provide tax exempt mortgage financing for new multi-family housing. Anticipated Impact:. The Huntington Breakers will contain 342 units. Of these 25-0ercentor -86 units will be allocated as affordable and offered on first right basis to Redevelopment Agency's relocation/replacement housing. Responsible Agencies: HCD/Redevelopment Agency Financing: W6 million tax exempt financing (closed in March 1983) c hed ule: 1984 8.3 STANDARDS AND PLANS FOR ADEQUATE SITES A key element in satisfying the housing needs of all segmerts of the community is the provision of adequate sites for housing of all types, sizes, and prices. This is an important function of both zoning and General Plan land use designations. Since the city is already developed to a large extent, provision for future housing needs may require the rezoning of some areas where appropriate to meet housing needs and where economically feasible in terms of 72 `1 City facilities and services. An assessment of the adequacy of sites must include the collective capacity of sites community-wide as well as the suitability of individual sites for non-market rate housing. 8.3.1 Policies To assure the adequate provision of sites for housing, the City of Huntington Beach shall: • Utilize the following criteria for identifying and evaluating potential sites for low and moderate cost housing. Sites should be: - located with convenient access to: arterial highways and public transportation schools, parks, and recreational facilities shopping areas employment opportunities - adequately served by public facilities, services, and utilities - minimally impacted by seismic and flood hazards. Where such hazards cannot be avoided, adequate mitigation measures shall be incorporated into the design of all proposed development. - minimally impacted by noise and blighted conditions - compatible with surrounding existing and planned land uses - located outside areas of predominantly lower income concentrations • Plan for residential land uses which accommodate anticipated growth from new employment opportunities. • Locate residential uses in proximity to commercial and industrial areas and transportation routes to provide convenient access to employment centers. • Promote the rezoning of vacant or recyclable parcels of land to higher densities where compatible , with surrounding land uses and available services in order to lower the cost of housing. • Utilize surplus park and/or school sites for residential use where appropriate and consistent with the City's General Plan. 8.3.2 Programs 8.3.2.1 Action: Review the proposed comprehensive revision of Division 9 of the City Municipal Code to ensure it reflects Housing Element policies and programs while maintaining adequate standards for development. Articipated Impact: Ensure consistency in carrying out the housing program while maintaining quality development. Responsible Agencies: Department of Development Services 73 Financing: Department budget Schedule: 19 85-19 86 8.3.2.2 Action: Monitor charges in industrial and commercial land uses to assess their impact on residential land use. Anticipated Impact: This action is intended to reflect changing conditions in the city in ocderto adequately respond to current housing needs. Responsible Agencies: Department of Development Services Financing: Department budget Schedule: Ongoing 8.3.2.3 Action: Investigate the feasibility of utilizing vacated school and pant sites and other publicly owned land for low and moderate cost housing. Antictated Impact: Increase in the availability of sites for low and moderate income housing, and provision of incentives to private developers to produce affordable housing. Responsbile Agencies: Department of Development Services and Department of Public Woeks Financing: Department budgets Schedule: Ongoing .8.3.2.4 Action: Investigate General Plan land use and zoning designations to determine where increased densities can be utilized to provide for rental units for households of lower and moderate incomes. ArticQated Impact:. Increase in the number of suitable sites for development of affordable-housing. Responsible Agencies: Department of Development Services -- - - - - - - - - - - - - - - - - - Financing: Department budget Schedule: 1985-1986 8.4 PRESERVING HOUSING AND NEIGHBORHOODS The State of California has made housing preservation and conservation a high statewide priority. While most of the city's housing stock is less than 20 years old and in good condition, a recent Community and Neighborhood Enhancement Program identified areas of deteriorated older units. Two neighborhoods in particular, the Downtown and the Oakview neighborhood, have been designated as targets for rehabilitation under the Community Development Block Grant Program. Investor-owners within the Oakview Area have expressed enthusiastic support for this project and currently 64 units within the area are being re he bi 1 it at ed. 74 8.4.1 Policies In order to preserve housing and neighborhoods, the City of Huntington Beach shall: • Encourage the maintenance and repair of existing owner-occupied and rental housing to prevent deterioration of housing in the city. Encourage the rehabilitation of substandard and deteriorating housing where f easi ble. • Where possible, take action to promote the removal and replacement of those substandard units which cannot be rehabilitated • Provide and maintain an adequate level of community facilities and municipal services in all community areas. • Improve and upgrade community facilities and services where necessary. 8.4.2 Programs 8.4.2.1 Action: Review all charges in planned land uses to determine the cumulative impart on community facilities. Anticipated Impact: The assurance of, adequate .levels of community facilities and services to all areas of the city. Responsible Agencies: Department of Development Services and Department ofRublicWorks - - - - - Financing: Department budgets Schedule: Ongoing 8.4.2.2 Action: Continue to make available low interest' rehabilitation loans for low=income owner-occupied housing. Anticipated Impact: Rehabilitation of deteriorated housing in the city and preservation of existing single family housing stock. The program goal is 25 units per year with a maximum loan of $15,000 per unit. Responsible Agencies: Huntington Beach HCD Financing: t950,000 CDBG original loan pool; $200,000 annual addition. Schedule: O ng oing 8.4.2.3 Action: Enhance and preserve the multi-family housing stock within the Oakview Nieghborhood Anticipated Impact: The rehabilitation of 64 units in the Koledo Demonstration Program is underway and the program will be expanded to the remainder of the area in the future years. Responsible Agencies: Huntington Beach HCD/Redevelopment Agency 75 i Financinq: CDBG Rehabilitation Loan Pool; possible use of Redevelopment Agency Funds Schedule: Ongoing 8.4.2.4 Action: Within selected target areas, provide low interest rehabilitation loans to investor-owners of multi-family rental housing. Anticieated Impact: Rehabilitation of deteriorating multi-family housing and the preservation and enhancement of rental housing stock occupied by low and moderate income households. Goal of 35 units per year. Responsible Agencies: Huntington Beach HCD Financing: CDBG Loan Pool and CDBG Funds Sc hedule: Ongoing 8.4.2.5 Action: Monitor- housing conditions in neighborhoods considered marginal or at risk for deteriorated conditions in order to identify the need to expand existing rehabilitation programs. Anticipated Impact: The prevention of deterioration in marginal neighborhoods. Responsible A eq, nc ies:. Hunti ngton B each HCD Financing: CDBG funds §c hed ule: Ongoing 8.4.2.6 Action:. In concert with a private developer, develop and implement a comprehensive improvement plan for Commodore Circle. Antic!pated Impact: Rehabilitation of 80 units and initiation of occupancy and maintenance standards. Responsible Agency: HCD Financing: t200,000 in CDBG fund-gRdevelopment Agency Tax Exempt Financing Schedule: 1984-1985 8.4.2.7 Action: Prepare a City-wide Maintenerce ordinance. Articipated Impact: Provide an enforcement tool to insure uniform maintenance consistent with the standard prevalent in the community. Responsible Agency: HCD Financing: Department Budget Sc hedule: 1985 76 8.4.2.8 Action: Continue to actively enforce land use ordinances. Anticipated Impact: Improved maintenance throughout the City. Responsible Agency: Department of Development Services Financing: Department Budget Schedule: Ongoing 8.5 PRESERVING AFFORDABILITY An importart aspect of making housing available to all economic segments of the community is ensuring that assisted housing remains affordable to the income groups for which it was intended or which presently occupy it. In the rental housing market, the priority of preserving affordability may conflict with that of preserving housing and neighborhoods, since rehabilitated units can command higher rerts. Thus conflict necessitates a delicate balance. 8.5.1 Policies In order to preserve affordability, the City of Huntington Beach shall: • Promote and, where possible, require the continued affordability of all units produced with participation by the City or its authorized agerts including density bonuses and tax exempt financing. • Encourage the continued affordability of those units utilizing public funds for rehabilitation. • Regulate the conversion of existing apartment units to condominiums to minimize the adverse impact of such conversion on the supply of low and moderate income rental housing, keeping in mind that condominium conversion may, at time, provide affordable opportunities for home ownership. 8.5.2 Programs 8.5.2.1 Action: Oversee the requirements for continued affordability of low and moderate income units produced under the housing program with tax exempt financing. Antici ated Impact: The retention of affordable units produced with the tax exempt financing-program. Responsible Agencies: HCD/Redevelopment Agency Financing: Proceeds of tax exempt securities sales Schedule: Ongoing 8.5.2.2 Action: Prepare a condominium conversion ordinance. Anticipated Impact: Regulate the conversion of rental housing to ownership units in order to mitigate impacts on affordable rental housing. 77 Responsible Agencies: Department of Development Services and the Office of the City Attorney Financing: Department budgets Schedule: 1984 8.5.2.3 Action: Continue to pursue production of affordable housing, utilizing CDBG funds, Redevelopment Agency funds and other available resources to meet the Redevelopment Agency's ongoing relocation/replacement agency obligations. Artic' ated Impact Increase the supply of affordable housing. Responsible Agencies: Department of Development Services and Huntington Beech HCD/Redevelopment Agency Financing: CDBG funds, Redevelopment Agency funds and other resources as available. Schedule: Ongoing 8.5.2.4 Action: Create and maintain an inventory of sites potentially suitable for affordable housing and refer these to private developers. Antitipated Im2act: This action will facilitate the production of affordable housing: Responsible Agencies: Huntington Beach HCD/Redevelopment Agency Financinq: CDBG funds/Tax Exempt Financing Schedule: Ongoing 8.5.2.5 Action: Meet and consult with mobile home owners who are potential displacees from mobilehome parks which intend to convert to other uses. Anticipated Impact: Assessment of impacts and preparation of strategies to address needs of-displacees. Responsible Agencies: Redevelopment Agency and Department of Development Services - - - Financinq: Department Budgets Schedule: Ongoing 8.5.2.6 Action: Provide financial assistance for relocation of persons displaced by redevelopment activities, including occuparts of mobilehomes. Anticipated Impact: Mitigation of adverse impacts on displaced residents Responsible Agency: HCD Financing: CDBG funds$585,000 1984-85 78 Schedule: Ongoing 8.6 ENERGY CONSERVATION Reducing expenditures for energy can result in effective reductions in housing expense, since the costs of utilities are part of overall housing costs. The City does, therefore, want to encourage more efficient use of energy, to promote both private benefits (less expensive utility bills) and public benefits (reduced reliance on imported fuel). 8.6.1 Policies • Encourage passive solar design in the development of new housing. • Consider developing retrofit ordinances requiring attic insulation and weatherstripping to be implemented at the time of resale or improvements to the dwelling. < • Investigate the feasibility of the using of renewable energy sources (solar and geothermal) for hot water, space, and pool heating of larger housing developments. • Study the possibility of revising current zoning regulations to ensure solar access. • Study the possibility of revising subdivision regulations to address solar access. • Review and revise current municipal landscaping and tree policies so that landscaping in the City minimizes shading of solar systems. • Revise local EIR and site plan review guidelines to address the issue of solar access. • Encourage CC&Rs that protect solar access in new development. • Adopt development standards that specify to what extent energy features must be incoporated into residential projects. • Continue to encourage alternatives to the automobile such as buses, bicycling, and wal td ng. 79 CITY OF HUNTINGTON BEACH •� INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH - r c Michael T. Uberuaga, From Mike Adams,\" `IA '+V To City Administrator Director Subject HOUSING ELEMENT STUDY SESSION Date July 11, 1990 `yx, Imo r- cr� n ..:D 71 The following information concerns several issues relative to the Draft Housing Element discussion from the July 2, 1990, City Council Study Session. Additional items will be presented at the July 16, 1990, City Council Study Session. Attachment One is a list of all Housing Element policies and programs with the corresponding page number. 1 . State Requirements : The California Government Code (Planning & Zoning Laws) describes the requirements for a Housing Element. The State' s policies are as follows (Sec. 65580) : (a) The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every California family is a priority of the highest order. (b) The early attainment of this goal requires the cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians of all economic levels . (c) The provision of housing affordable to low-and moderate-income households requires the cooperation of all levels of government . (d) Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community. (e) The Legislature recognizes that in carrying out this responsibility, each local government also has the responsibility to consider economic, environmental, and fiscal factors and community goals set forth in the general plan and to cooperate with other local governments and the state in addressing regional housing needs . CITY OF HUNTINC7OH BEACH WINSTRATIVE AFFIC,E HOUSING ELEMENT STUDY SESSION July 11, 1990 Page 2 The intent of the State legislation for a Housing Element is as follows (Sec. 65581) : (a) To assure that counties and cities recognize their responsibilities in contributing to the attainment of the state housing goal . (b) To assure that counties and cities will prepare and implement housing elements which, along with federal and state programs, will move toward attainment of the state housing goal . (c) To recognize that each locality is best capable of determining what efforts are required by it to contribute to the attainment of the state housing goal, provided such a determination is compatible with the state housing goal and regional housing needs . (d) To ensure that each local. government cooperates with other local governments in order to address regional housing needs . The Government Code discusses further the Housing Element content and regional housing needs . After three submittals and several document revisions in the last year, the State Housing and Community Development (HCD) acknowledged that the City' s 1989 Draft Housing Element complies with the housing guidelines . HCD is responsible for assuring compliance with state housing guidelines. The deadline for completing our Housing Element update was July 1, 1989 . The Element was submitted by that date. 2 . Legal Implications : Since the mid-70s every city has been required to have a general plan with mandatory elements . This includes an updated housing element . Without an updated housing element component, the City of Huntington Beach' s General Plan lacks legally-adequate status because it would not meet mandatory statutory criteria (i .e. housing element guidelines) . As a result, the City' s action on zone changes, subdivision approval (Tract Maps and Parcel Maps) , conditional use permits and other land-use approvals would be subject to legal challenge. A recent court case involves the City of Seal Beach where the City lacked an updated housing element. In that city, opponents of a 329-unit development gained a court order preventing the city from issuing permits for new residential construction until their housing element is deemed adequate by the State (HCD) and adopted by the city. HOUSING ELEMENT STUDY SESSION July 11, 1990 Page 3 3 Energy Conservation (Retrofit Ordinance) : The State housing guidelines require an analysis of opportunities for energy conservation with respect to residential development. For compliance, Issue Area #6 is included in the Draft Housing Element and includes five policies and three programs . One of the policies (6 .b - pg. 3-28) recommends that the city, over the next five years, investigate the feasibility of a retrofit ordinance requiring attic insulation and weatherstripping to be implemented at the time of resale or improvements to the dwelling. This is a policy statement and not an implementation measure. It does not require the City to adopt a retrofit ordinance, it is a statement that the City study the feasibility of such an ordinance. During the future study, it may be determined that it is impractical to adopt and/or too costly, or that the City should offer a grant or other economic incentive to offset the costs of doing such improvements . In the long term, it would reduce energy consumption and increase home values . The HB/FV Board of Realtors raised valid good points regarding the costs associated with retrofitting improvements . For this reason, a retrofit ordinance is not a part of the Housing Element. Such an ordinance requires further study and analysis . The proposed policy suggests that the city examine the idea and not necessarily approve. 4 . HUD Income Figures vs . Chapman College: For the majority of housing programs in Huntington Beach, HUD income quidelines are used. This is not by choice but a requirement. Any program or project funded by federal, state, redevelopment set-a-side funds, and any other public funds requires the use of HUD income guidelines . In addition, all housing requirements, specified in the Regional Housing Needs Assessment (RHNA) are calculated using HUD income guidelines . The use of other income guidelines, if permitted by the funding source, would necessitate recalculations to HUD guidelines to insure that the City received credit towards the RHNA requirement. ATTACHMENTS• 1. 1989 DRAFT HOUSING ELEMENT POLICIES & PROGRAMS WITH PAGE REFERENCE MA:SH: lp (6337d) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE 1 . Accessibility Policies a. Affirm positive action to assure unrestricted access to housing. X Page 3 - 7 b. Promote housing which meets special needs of handicapped and elderly persons. X Page 3 - 7 c. Encourage the provision of adequate numbers of housing units to meet needs of families of all sizes. X Page 3 - 7 Programs a. Utilize services of Orange County Fair Housing Council . X Page 3 - 7 b. Make available Redevelopment Agency-owned property within the Talbert-Beach redevelopment area for the construction of senior citizen and/or low and moderate income housing. Provide for reduced development standards through use of the City' s Senior Residential Suffix zoning. X Page 3 - 8 c. Implement state and federal laws for access and adaptability for the physically handicapped. Continually adopt updates to the State Uniform Building and Housing Codes to reflect current accessibility requirments. X Page 3 - 8 *Ongoing from 1984 Housing Element (6157d-1 ) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE d. Continue to coordinate with and financially support the Dayle MacIntosh Center to maintain a directory of accessible housing for handicapped persons. X Page 3 - 8 e. Actively market grants, through preparation and distribution of information packets, which are available to owners of rental housing for modifications necessary to make units accessible to and suitable for for the physically disabled. X Page 3 - 9 f. Fund rehabilitation loans which include improvements to make housing accessible to handicapped persons within designated neighborhoods. X Page 3 - 9 2. Adequate Provision Policies a. Encourage the provision and continued availability of a range of housing types throughout the community, with variety in the number of rooms and level of amenities. X Page 3 - 10 b. Encourage both the private and public sectors to produce or assist in the production of housing with particular emphasis on housing affordable to lower income households, as well as the needs of the handicapped, the elderly, large families and female headed households. X Page 3 - 10 *Ongoing from 1984 Housing Element (6157d-2) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE C. Utilize density bonuses and other financial incentives where feasible to encourage the production of low and moderate income housing. Provide rental assistance vouchers, as available, for some or all of the affordable units provided. X Page 3 - 10 d. Take advantage of existing infras- tructure and public improvements to provide additional affordable housing by allowing second units in single- family zoning districts. X Page 3 - 10 e. Facilitate the development of a mixed- use projects containing residential and non-residential uses which can take advantage of shared land costs to reduce the costs of land for residential uses through General Plan Designation and the Specific Plan Process. X Page 3 - 10 f. Encourage alternative forms of homeownership, such as shared equity ownership and limited eqity cooperatives and housing arrangements, such as Shared Living Units, to encourage affordability. (Limited equity cooperatives are proposed for further study). X X Page 3 - 10 *Ongoing from 1984 Housing Element (6157d-3) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE g. Encourage the development of childcare facilities coincident with new housing development through conditions on project approval at the CUP or EIR level , and review the City's Zoning Ordinance to identify any unnecessary restrictions related to the provision of family day care and childcare facilities in residential zones. X Page 3 - 10 h. Promote adoption of development standards which reduce housing costs. X Page 3 - 10 i . Review all regulations, ordinances, departmental processing procedures, and residential fees related to rehabilitation and/or construction to assess their impact on housing costs, and revise as appropriate. X Page 3 - 11 j. Provide the management and personnel resources necessary to carry out identified housing programs and responsibilities. X Page 3 - 11 k. Continue and expand utilization of Federal and State housing assistance programs. X Page 3 - 11 1 . Promote the availability of sufficient rental housing to afford maximum choice of housing type for all economic segments of the community. X Page 3 - 11 *Ongoing from 1984 Housing Element (6157d-4) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE m. Review the City's condominium conversion ordinance, and consider revising to allow modified requirements for units which are set aside for low and moderate income households. X Page 3 - 11 n. Encourage the retention of adequate numbers of mobile homes and investigate areas for potential new mobile home zoning. X Page 3 - 11 o. Continue to enforce the City's mobile home conversion ordinance. X Page 3 - 11 p. Continue to coordinate with local social service providers and notify of available City funding to address the needs of the City's homeless population. X Page 3 - 11 q. Encourage the provision of alternative housing through replacement housing and/or relocation for low or moderate income households displaced by public or private developments. X Page 3 - 11 r. Ensure that any adverse impacts are minimized when increasing densities or relaxing stadards in order to provide for low and moderate income housing. X Page 3 - 11 *Ongoing from 1984 Housing Element (6157d-5) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE s. Investigate the development of single room occupancy (SRO) hotels to provide housing opportunities for very low income residents. X Page 3 - 11 Programs a. Apply to the State Mortgage Bond Allocation Committee for single- family bond allocations to enable below market rate financing to be offered on qualifying projects to moderate income households. X Page 3 - 11 b. Continue to offer incentives, including density bonus, land write downs, and write downs of other development costs, to for- profit and non-profic developers, for the development of senior citizen and low/ moderate housing. X Page 3 - 12 c. Provide consultation and technical assistance to aid private developers in expanding housing opportunities. X Page 3 - 12 d. Continue the City' s outreach campaign to solicit participation of private developers in affordable housing programs; maintain a roster of interested firms. X Page 3 - 12 *Ongoing from 1984 Housing Element (6157d-6) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE e. Continue to contract with the Orange County Housing Authority to administer the Section 8 Housing Assistance/Voucher Program and aggressively pursue the attainment of additional housing vouchers. X Page 3 - 12 f. Continue to contract with the Orange County Housing Authority to screen and verify incomes of potential participants in housing programs. X Page 3 - 13 g. Review development standards, such as minimum size, open space, parking, to determine which ones can be relaxed in order to reduce housing cost; process appropriate code revisions as part of the zoning ordinance update. X Page 3 - 13 h. Evaluate the feasibility of developing a specific procedure for fast track processing projects with an affordable housing component. X Page 3 - 13 Page 3 - 133 i . Continue to provide tax exempt mortgage financing for new multi- family housing. X Page 3 - 13 j. Continue to operate Project Self- X Page 3 - 14 Sufficiency to address the needs of low income, single parents by offering rental assistance, job training, and other needed services. *Ongoing from 1984 Housing Element (6157d-7) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE k. Continue to offer financial assistance to local groups which provide services to area' s homeless population. Provide public notification of the availability of funds through newspaper advertisements, as well as direct notification to local service providers. X Page 3 - 14 1 . Actively market the City's shared housing program to increase the number of roommate matches made between senior citizens. Utilize the City's Public Information Office to advertise the program through such methods as Public Television and placement of brochures in local community centers. X Page 3 - 14 Investigate developing a pilot project match residents of varying age categories which links up with Project Self- Sufficiency. X Page 3 - 14 m. Develop and implement a shared equity program to provide down payment assistance to qualifying low and moderate income first time homebuyers. X Page 3 - 15 *Ongoing from 1984 Housing Element (6157d-8) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELE14ENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE n. Continue to provide for the housing needs of large families through the provision of a) rent certificates for larger units to accommodate over- crowded households as part of the Rental Rehab Program, and b) single- family rehabilitation loans for room additions to alleviate unit overcrowding. X Page 3 - 15 o. Review the City' s Zoning Ordinance to identify any unnecessary restrictions related to the provision of family day care and childcare facilities in residential zones. X Page 3 - 15 p. Investigate the use of specific plans to promote a balance of housing and open space, and to reduce the per unit cost of housing through such methods as clustered housing, zero lot line on smaller lots, flexible setbacks, reduced parking standards and lot sizes. X Page 3 - 16 q. Investigate the feasibility and a possible ordinance to permit Single Room Occupancy (SRO) hotels as a mechanixm for providing affordable housing. X Page 3 - 16 r. Encourage developers to pursue "gap" financing from the Orange County Housing Authority for residential projects offering affordable units. X Page 3 - 16 *Ongoing from 1984 Housing Element (6157d-9) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE 3. Standards and Plans for Adequate Sites Policies a. Utilize the following general criteria for identifying and evaluating potential sites for the elderly and/or handicapped. While compliance with the following criteria is preferable, no site shall be dismissed for failure to meet this criteria and shall be judged on its own merit. Sites should be: X Page 3 - 17 - located with convenient access to arterial highways and public transportation, schools, parks, and recreational facilities, shopping areas, employment opportunities. X Page 3 - 17 - adequately served by public facilities, services, and utilities. X Page 3 - 17 - minimally impacted by seismic and flood hazards. Where such hazards cannot be avoided, adequate mitigation measures shall be incorporated into the design of all proposed development. X Page 3 - 17 - minimally impacted by noise and blighted conditions. X Page 3 - 17 - compatible with surrounding existing and planned land uses. X Page 3 - 17 - located outside areas of predominantly lower income concentrations. X Page 3 - 17 *Ongoing from 1984 Housing Element (6157d-10) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE b. Plan for residential land uses which accommodate anticipated growth from new employment opportunites. X Page 3 - 17 c. Locate residential uses in proximity to commercial and industrial areas and transportation routes to provide convenient access to employment centers. X Page 3 - 17 d. Promote the rezoning of vacant or recyclable parcels of land to higher densities where compatible with surrounding land uses and available services in order to lower the cost of housing. X Page 3 - 17 e. Utilize surplus park and/or school sites for residential use where appropriate and consistent with City's General Plan. X Page 3 - 18 f. Permit the development of manufactured housing in single-family zones, and accommodate the development of mobilehome parks through the City's Manufactured Housing Overlay Zone. X Page 3 - 18 Programs a. Maintain an inventory of vacant land in the City and make available to interested parties for use in identifying potential residential development sites. X Page 3 - 18 *Ongoing from 1984 Housing Element (6157d-11 ) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE b. Review Division 9 of the City Municipal Code to ensure it reflects Housing Element policies and programs while maintaining adequate standards for development. X Page 3 - 18 c. Monitor changes in industrial and commercial land uses to assess their impact on residential land use. X Page 3 - 18 d. Work with the four school districts in Huntington Beach to provide residential development opportunities on surplus school sites. X Page 3 - 19 e. Investigate General Plan land use and zoning designations to determine where increased densities can be utilized to provide for rental units for households of lower and moderate incomes. X Page 3 - 19 f. As part of the update of Division 9 of the City Municipal Code, identify appropriate zones for the location of transitional housing and emergency shelters for the homeless. X Page 3 - 19 g. Continue to work with property owners in the Holly-Seacliff Master Plan area to address various land use issues, including the redesignation of non- residential lands to residential uses, subject to the procedures required under State Law. X Page 3 - 20 *Ongoing from 1984 Housing Element (6157d-12) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE 4. Preserving Housing and Neighborhoods Policies Page 3 - 21 a. Encourage the maintenance and repair of existing owner-occupied and rental housing to prevent deterioration of housing in the City. X Page 3 - 21 b. Encourage the rehabilitaion of sub- standard and deteriorating housing where feasible. X Page 3 - 21 c. Where possible, take action to promote the removal and replacement of those substandard units which cannot be rehabilited. X Page 3 - 21 d. Provide and maintain an adequate level of community facilities and municipal services in all community areas. X Page 3 - 21 e. Improve and upgrade community facilities and services where necessary. X Page 3 - 21 f. Encourage compatible design to minimize the impact of intensified reuse of residential land on existing residential development. X Page 3 - 21 Programs a. Review all changes in planned uses to determine the cumulative impact on community facilities. X Page 3 - 21 *Ongoing from 1984 Housing Element (6157d-13) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE b. Continue to make available low interest rehabilitation loans for low-income owner-occupied housing. X Page 3 - 22 c. Continue to enhance and preserve the multi-family housing stock with the Oakview neighborhood X Page 3 - 22 d. Within selected target areas, provide low interest rehabilitation loans to investor-owners of multi-family rental housing. X Page 3 - 22 e. Monitor housing conditions in neighborhoods considered marginal or at risk for deteriorated conditions in order to identify the need to expand existing rehabiitation programs. X Page 3 - 22 f. Continue to implement the comprehesive improvement plan for Amberleaf Circle. X Page 3 - 23 g. Continue to enforce the City's code enforcement program, including property maintenance inspectins. X Page 3 - 23 h. Continue to actively enforce land use ordinances. X Page 3 - 24 *Ongoing from 1984 Housing Element (6157d-14) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE 5. Preserving Affordability Policies a. Promote and, where possible, require the continued affordability of all units produced with participation by the City or its authorized agents including density bonuses and tax exempt financing. X Page 3 - 25 b. Encourage the continued affordability of thoses units utilizing public funds for rehabilitation. X Page 3 - 25 c. Regulate the conversion of existing apartments units to condominiums to minimize the adverse impact of conversions on the supply of low and moderate income rental housing, keeping in mind that condominiums may offer affordable opportunities for home ownership. X Page 3 - 25 d. Mitigate the displacement impacts occuring as a result of residential demolition through unit replacement or relocation of tenants. X Page 3 - 25 e. Conserve affordable housing opportun- ities in the Coastal Zone through implementation of State requirments for replacement of low and moderate income housing, and for inclusion of affordable units where feasible in new residential construction. X Page 3 - 25 *Ongoing from 1984 Housing Element (6157d-15) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE Programs a. Develop an affordable housing monitoring program, including restrictive convenants for rental units and financing mechanisms, to ensure the long term conservation of affordable units for which City incentives have been provided. X Page 3 - 25 b. Develop a Multi-Family Unit Interest Rate Write Down Program targeted towards publicly-subsidized housing projects with the potential for conversion to market rate. X Page 3 - 25 c. Continue to enforce the City's condominium conversion ordinance, and evaluate revising the ordinance to allow modified requirements if a portion of the units are set aside for Low and Moderate Income households. (The ordinance revision is proposed for further study) . X X Page 3 - 26 d. Continue to pursue production of affordable housing, utilizing CDBG funds Redevelopment Set-Aside funds and other available resources to meet the Redevelopment Agency' s ongoing relocation/ replacement of housing obligations. X Page 3 - 26 *Ongoing from 1984 Housing Element (6157d-16) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE e. Establish contact with local community development corporations and other non-profit housing providers to encourage and facilitate the development of affordable housing in Huntington Beach. X Page 3 - 26 f. Meet and consult with mobile home owners who are potential displaces from mobilehome parks which intend to convert to other uses. X Page 3 - 27 g. Provide financial assistance for relocation of persons displaced by redevelopment activities, including occupants of mobile homes. X Page 3 - 27 h: Continue to monitor and assure replacement of low and moderate income housing which is demolished or converted in the Coastal Zone. X Page 3 - 27 6. Energy Conservation Policies Policies a. Encourage the use of energy conservation devices and passive design concepts which make use of the natural climate to increase energy efficiency and reduce housing cost. X Page 3 - 28 *Ongoing from 1984 Housing Element (6157d-17) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE b. Consider developing retrofit ordinances requiring attic insulation and weatherstripping to be implemented at the time of resale or improvements to the dwelling. (This policy is an ongoing policy that is proposed for further study.) X X Page 3 - 28 c. Investigate the feasibility of the use of renewable energy sources (solar and geothermal ) for hot water, space, and pool heating of larger housing developments. X Page 3 - 28 d. Encourage CC&Rs that protect solar access in new development. X Page 3 - 28 e. Continue to encourage alternative forms of transit such as buses, bicycles, and walking. X Page 3 - 28 Programs a. As part of the update of Division 9 of the City Municipal Code, incorporate development standards which specify required energy conservation features for residential development. X Page 3 - 28 *Ongoing from 1984 Housing Element (6157d-18) ATTACHMENT NO. 1 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY REFERENCE b. Review the City's zoning and subdivision regulations, EIR and site plan review guidelines, and municipal landscaping policies and revise as appropriate to address the issue of solar access. X Page 3 - 28 c. Continue to support and assist in publicizing energy conservation programs offered by the utilities. X Page 3 - 28 *Ongoing from 1984 Housing Element (6157d-19) Authorized to Publish Advertisements of all kinds including public notices by Decree of the Superior Court of Orange County, California, Number A-6214, September 29, 1961, and A-24831 June 11, 1963 STATE OF CALIFORNIA County of Orange I am a Citizen of the United States and a resident of the County aforesaid; I am over the I PUBLIC NOTICE PUBLIC NOTICE age of eighteen years, and not a party to or I NOTICE OF as outlined above. It there interested in the below entitled matter. I am a PUBLIC DRAFT 89 HEARING are any further questions i HOUSING ELEMENT Please call Scott Hess, principal clerk of the ORANGE COAST DAILY l UPDATE FOR THE Senior Planner, or Ruth jCITY OF Lambert.Assistant Planner, PILOT, a newspaper of general circulation, I HUNTINGTON BEACH at536-5271. AND NEGATIVE Connie Brockway printed and published in the City of Costa Mesa, DECLARATION Huntington Beach City NO.90-11 Clerk Orange Coast County of Orange, State of California, and that 1! (Continued from Daily Pilot July 5, 1990 attached Notice is a true and complete copy as I NOT attached2IS199HEREBY, Th514 tnat was printed and published in the Costa Mesa, I BeachGIVEN Planning Pannin thge Huntington Beach anCommission . will hold a public hearing in Newport Beach, Huntington Beach, Fountain the Council Chamber at the, Huntington Beach Civic Valley, Irvine, the South Coast communities and Center, 2000 Main Street, Huntington Beach, Cali- Laguna Beach issues of said newspaper to wit fornia,on the date and at the Itime indicated below to re- the issue(s) of. iceive and consider the state-' ments of all persons who (wish to be heard relative to Ithe application described- below., DATE/TIME: Monday, July 16,1990,7:00 PM(Con-, tinued from May 21, 1990) APPLICATION NUMBER: July 5, 1990 Draft 1989 Housing Element Update of the City of Hunt- ington Beach General Plan and Negative Declaration No.90-11 APPLICANT:City of Hunt- ington Beach LOCATION:City-wide ZONE:All Districts REQUEST: Review and adopt updated Housing Ele- ment which conforms with new State mandated re- quirements and approve Negative Declaration No. 90-11. ENVIRONMENTAL STATUS:Subject document establishes City policy -for housing issues and is assessed under Negative Declaration No.90-11. Indi- declare, under penalty of perjury, that the vidual projects i snt- ing these policies willill be be sub- foregoing is true and correct. ject to environmental assessment at the time of application. ON FILE: A copy of the Executed on July 5 99 0 proposed request is on file in + = the City Clerk's office and at Costa Mesa, California. the Community D - ment Department,, 200 2000 Main Street, Huntington Beach,California 92648, for inspection by the public &MCL after July 13, 1990. ALL INTERESTED PER- Signature SONS are invited to attend said hearing and express opinions or submit evidence for or against the application PROOF OF PUBLICATION 71SI a NOTICE OF PUBLIC HEARING DRAFT 1989 HOUSING ELEMENT UPDATE FOR THE CITY OF HUNTINGTON BEACH AND NEGATIVE DECLARATION NO. 90-11 (Continued from May 21, 1990) NOTICE IS HEREBY GIVEN that the Huntington Beach City Council will hold a public hearing in the Council Chamber at the Huntington Beach Civic Center, 2000 Main Street, Huntington Beach, California, on the date and at the time indicated below to receive and consider the statements of all persons who wish to be heard relative to the application described below. DATE/TIME: Monday, July 16, 1990, 7:00 PM (Continued from May 21, 1990) APPLICATION NUMBER: Draft 1989 Housing Element Update of the City of.-Huntington Beach General Plan and Negative Declaration No. 90-11 APPLICANT: City of Huntington Beach LOCATION: City-wide ZONE: All Districts REOUEST: Review and adopt updated Housing Element which conforms with new State mandated requirements and approve Negative Declaration No . 90-11. ENVIRONMENTAL STATUS: Subject document establishes City policy for housing issues and is assessed under Negative Declaration No. 90-11. Individual projects implementing these policies will be subject to environmental assessment at the time of application. ON FILE: A copy of the proposed request is on file in the City Clerk' s office and the Community Development Department, 2000 Main Street, Huntington Beach, California 92648, for inspection by the public after July 13 , 1990 . ALL INTERESTED PERSONS are invited to attend said hearing and express opinions or submit evidence for or against the application as outlined above. If there are any further questions please call Scott Hess, Senior Planner, or Ruth Lambert, Assistant Planner, at 536-5271. Connie Brockway Huntington Beach City Clerk (5483d-5) , NOTICE OF PUBLIC HEARING DRAFT 1989 HOUSING ELEMENT UPDATE -,FOR THE CITY OF HUNTINGTON BEACH AND NEGATIVE DECLARATION NO. 90-11 (Continued from May 21, 1990) NOTICE IS HEREBY GIVEN that the Huntington Beach City Council will hold a public hearing in the Council Chamber at the Huntington Beach Civic Center , 2000 Main Street, Huntington Beach, California , on the date and at the time indicated below to receive and consider the statements of all persons who wish to be heard relative to the application described below. DATE/TIME: Monday, July 16 , 1990 , 7 : 00 PM (Continued from May 21, 1990) APPLICATION NUMBER: Draft 1989 Housing Element Update of the City of Huntington Beach General Plan and Negative Declaration No . 90-11 APPLICANT: City of Huntington Beach LOCATION: City-wide ZONE: All Districts REOUEST: Review and adopt updated Housing Element which conforms with new State mandated requirements and approve Negative Declaration No . 90-11 . ENVIRONMENTAL STATUS : Subject document establishes City policy for housing issues and is assessed under Negative Declaration No . 90-11 . Individual projects implementing these policies will be subject to environmental assessment at the time of application. ON FILE: A copy of the proposed request is on file in the City Clerk' s office and the Community Development Department , 2000 Main Street, Huntington Beach, California 92648 , for inspection by the public after July 13 , 1990 . ALL INTERESTED PERSONS are invited to attend said hearing and express opinions or submit evidence for or against the application as outlined above. If there are any further questions please call Scott Hess , Senior Planner, or Ruth Lambert, Assistant Planner , at 536-5271 . Connie Brockway Huntington Beach City Clerk (5483d-5) I�Fb CITY OF HUNTINGTON BEACH FOE INTER-DEPARTMENT COMMUNICATION L HUNTINGTON BEACH - '\� Michael T. Uberuaga From Michael Ada Director To City From Community Development Subject HOUSING ELEMENT STUDY SESSION Date June 25, 1990 At the meeting of May 21, 1990, the City Council expressed several concerns and comments regarding the 1989 Draft Housing Element . These comments included requests for clarification on a number of policies and programs discussed within the document. The attached items are provided to assist the Council in discussions and subsequent action on the draft document . Attachment One includes a listing of all policies and programs included within the document . Policies and programs are organized according to six issue areas . This list indicates whether the policy or program is a new 1989 policy/program or an ongoing policy/program from the previous 1984 Housing Element . In addition, a separate column shows which policy/program will involve further study. As a result of additional study, these policies and programs may or may not be implemented and/or proposed for adoption in subsequent Housing Element updates . Attachment Two lists some of the Council members comments made at the meeting on May 21, 1990 . Some of the impacts that may result from these suggestions are also listed. Attachment Three consists of staff ' s response to comments submitted to the Council by the Board of Realtors on May 21, 1990. A copy of the original letter to Council is also attached. MA:SH:UL:kj1 Attachments 1. 1989 Draft Housing Element - Revised June 1990 2 . Policies and Programs included in the 1989 Draft Housing Element. 3 . Council comments from May 21, 1990 meeting. 4 . Staff response to Board of Realtors comments dated May 21, 1990. (6169d) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY 1 . Accessibility Policies a. Affirm positive action to assure unrestricted access to housing. X b. Promote housing which meets special needs of handicapped and elderly persons. X c. Encourage the provision of adequate numbers of housing units to meet needs of families of all sizes. X Programs a. Utilize services of Orange County Fair Housing Council . X b. Make available Redevelopment Agency-owned property within the Talbert-Beach redevelopment area for the construction of senior citizen and/or low and moderate income housing. Provide for reduced development standards through use of the City's Senior Residential Suffix zoning. X c. Implement state and federal laws for access and adaptability for the physically handicapped. Continually adopt updates to the State Uniform Building and Housing Codes to reflect current accessibility requirments. X *Ongoing from 1984 Housing Element (6157d-1) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY d. Continue to coordinate with and financially support the Dayle MacIntosh Center to maintain a directory of accessible housing for handicapped persons. X e. Actively market grants, through preparation and distribution of information packets, which are available to owners of rental housing for modifications necessary to make units accessible to and suitable for for the physically disabled. X f. Fund rehabilitation loans which include improvements to make housing accessible to handicapped persons within designated neighborhoods. X 2. Adequate Provision Policies a. Encourage the provision and continued availability of a range of housing types throughout the community, with variety in the number of rooms and level of amenities. X b. Encourage both the private and public sectors to produce or assist in the production of housing with particular emphasis on housing affordable to lower income households, as well as the needs of the handicapped, the elderly, large families and female headed households. X *Ongoing from 1984 Housing Element (6157d-2) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY c. Utilize density bonuses and other financial incentives where feasible to encourage the production of low and moderate income housing. Provide rental assistance vouchers, as available, for some or all of the affordable units provided. X d. Take advantage of existing infras- tructure and public improvements to provide additional affordable housing by allowing second units in single- family zoning districts. X e. Facilitate the development of a mixed- use projects containing residential and non-residential uses which can take advantage of shared land costs to reduce the costs of land for residential uses through General Plan Designation and the Specific Plan Process. X f. Encourage alternative forms of homeownership, such as shared equity ownership and limited eqity cooperatives and housing arrangements, such as Shared Living Units, to encourage affordability. (Limited equity cooperatives are proposed for further study). X X *Ongoing from 1984 Housing Element (6157d-3) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY g. Encourage the development of childcare facilities coincident with new housing development through conditions on project approval at the CUP or EIR level , and review the City's Zoning Ordinance to identify any unnecessary restrictions related to the provision of family day care and childcare facilities in residential zones. X h. Promote adoption of development standards which reduce housing costs. X i . Review all regulations, ordinances, departmental processing procedures, and residential fees related to rehabilitation and/or construction to assess their impact on housing costs, and revise as appropriate. X j. Provide the management and personnel resources necessary to carry out identified housing programs and responsibilities. X k. Continue and expand utilization of Federal and State housing . assistance programs. X 1 . Promote the availability of sufficient rental housing to afford maximum choice of housing type for all economic segments of the community. X *Ongoing from 1984 Housing Element (6157d-4) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY m. Review the City's condominium conversion ordinance, and consider revising to allow modified requirements for units which are set aside for low and moderate income households. X n. Encourage the retention of adequate numbers of mobile homes and investigate areas for potential new mobile home zoning. X o. Continue to enforce the City's mobile home conversion ordinance. X p. Continue to coordinate with local social service providers and notify of available City funding to address the needs of the City's homeless population. X q. Encourage the provision of alternative housing through replacement housing and/or relocation for low or moderate income households displaced by public or private developments. X r. Ensure that any adverse impacts are minimized when increasing densities or relaxing stadards in order to provide for low and moderate income housing. X *Ongoing from 1984 Housing Element (6157d-5) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY s. Investigate the development of single room occupancy (SRO) hotels to provide housing opportunities for very low income residents. X Programs a. Apply to the State Mortgage Bond Allocation Committee for single- family bond allocations to enable below market rate financing to be offered on qualifying projects to moderate income households. X b. Continue to offer incentives, including density bonus, land write downs, and write downs of other development costs, to for- profit and non-profic developers, for the development of senior citizen and low/ moderate housing. X c. Provide consultation and technical assistance to aid private developers in expanding housing opportunities. X d. Continue the City' s outreach campaign to solicit participation of private developers in affordable housing programs; maintain a roster of interested firms. X *Ongoing from 1984 Housing Element (6157d-6) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY e. Continue to contract with the Orange County Housing Authority to administer the Section 8 Housing Assistance/Voucher Program and aggressively pursue the attainment of additional housing vouchers. X f. Continue to contract with the Orange County Housing Authority to screen and verify incomes of potential participants in housing programs. X g. Review development standards, such as minimum size, open space, parking, to determine which ones can be relaxed in order to reduce housing cost; process appropriate code revisions as part of the zoning ordinance update. X h. Evaluate the feasibility of developing a specific procedure for fast track processing projects with an affordable housing component. X i . Continue to provide tax exempt mortgage financing for new multi- family housing. X j . Continue to operate Project Self- X Sufficiency to address the needs of low income, single parents by offering rental assistance, job training, and other needed services. *Ongoing from 1984 Housing Element (6157d-7) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY k. Continue to offer financial assistance to local groups which provide services to area's homeless population. Provide public notification of the availability of funds through newspaper advertisements, as well as direct notification to local service providers. X 1 . Actively market the City's shared housing program to increase the number of roommate matches made between senior citizens. Utilize the City' s Public Information Office to advertise the program through such methods as Public Television and placement of brochures in local community centers. X Investigate developing a pilot project match residents of varying age categories which links up with Project Self- Sufficiency. X m. Develop and implement a shared equity program to provide down payment assistance to qualifying low and moderate income first time homebuyers. X *Ongoing from 1984 Housing Element (6157d-8) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY n. Continue to provide for to housing needs of large families through the provision of a) rent certificates for larger units to accommodate over- crowded households as part of the Rental Rehab Program, and b) single- family rehabilitation loans for room additions to alleviate unit overcrowding. X o. Review the City' s Zoning Ordinance to identify any unnecessary restrictions related to the provision of family day care and childcare facilities in residential zones. X p. Investigate the use of specific plans to promote a balance of housing and open space, and to reduce the per unit cost of housing through such methods as clustered housing, zero lot line on smaller lots, flexible setbacks, reduced parking standards and lot sizes. X q. Investigate the feasibility and a possible ordinance to permit Single Room Occupancy (SRO) hotels as a mechanixm for providing affordable housing. X r. Encourage developers to pursue "gap" financing from the Orange County Housing Authority for residential projects offering affordable units. X *Ongoing from 1984 Housing Element (6157d-9) ATTACHMENT NO. 2 - 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY 3. Standards and Plans for Adequate Sites Policies a. Utilize the following general criteria for identifying and evaluating potential sites for the elderly and/or handicapped. While compliance with the following criteria is preferable, no site shall be dismissed for failure to meet this criteria and shall be judged on its own merit. Sites should be: X — located with convenient access to arterial highways and public transportation, schools, parks, and recreational faciliti-es, shopping areas, employment opportunities. X — adequately served by public facilities, services, and utilities. X — minimally impacted by seismic and flood hazards. Where such hazards cannot be avoided, adequate mitigation measures shall be incorporated into the design of all proposed development. X — minimally impacted by noise and blighted conditions. X — compatible with surrounding existing and planned land uses. X located outside areas of predominantly lower income concentrations. X *Ongoing from 1984 Housing Element (6157d-10) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY b. Plan for residential land uses which accommodate anticipated growth from new employment opportunites. X c. Locate residential uses in proximity to commercial and industrial areas and transportation routes to provide convenient access to employment centers. X d. Promote the rezoning of vacant or recyclable parcels of land to higher densities where compatible with surrounding land uses and available services in order to lower the cost of housing. X e. Utilize surplus park and/or school sites for residential use where appropriate and consistent with City' s General Plan. X f. Permit the development of manufactured housing in single-family zones, and accommodate the development of mobilehome parks through the City's Manufactured Housing Overlay Zone. X Programs a. Maintain an inventory of vacant land in the City and make available to interested parties for use in identifying potential residential development sites. X *Ongoing from 1984 Housing Element (6157d-11) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY b. Review Division 9 of the City Municipal Code to ensure it reflects Housing Element policies and programs while maintaining adequate standards for development. X c. Monitor changes in industrial and commercial land uses to assess their impact on residential land use. X d. Work with the four school districts in Huntington Beach to provide residential development opportunities on surplus school sites. X e. Investigate General Plan land use and zoning designations to determine where increased densities can be utilized to provide for rental units for households of lower and moderate incomes. X f. As part of the update of Division 9 of the City Municipal Code, identify appropriate zones for the location of transitional housing and emergency shelters for the homeless. X g. Continue to work with property owners in the Holly-Seacliff Master Plan area to address various land use issues, including the redesignation of non- residential lands to residential uses, subject to the procedures required under State Law. X *Ongoing from 1984 Housing Element (6157d-12) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY 4. Preserving Housing and Neighborhoods Policies a. Encourage the maintenance and repair of existing owner-occupied and rental housing to prevent deterioration of housing in the City. X b. Encourge the rehabilitaion of sub- standard and deteriorating housing where feasible. X c. Where possible, take action to promote the removal and replacement of those substandard units which cannot be rehabilited. X d. Provide and maintain an adequate level of community facilities and municipal services in all community areas. X e. Improve and upgrade community facilities and services where necessary. X f. Encourage compatible design to minimize the impact of intensified reuse of residential land on existing residential development. X Programs a. Review all changes in planned uses to determine the cumulative impact on community facilities. X *Ongoing from 1984 Housing Element (6157d-13) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY b. Continue to make available low interest rehabilitation loans for low-income owner-occupied housing. X c. Continue to enhance and preserve the multi-family housing stock with the Oakview neighborhood X d. Within selected target areas, provide low interest rehabilitation loans to investor-owners of multi-family rental housing. X e. Monitor housing conditions in neighborhoods considered marginal or at risk for deteriorated conditions in order to identify the need to expand existing rehabiitation programs. X f. Continue to implement the comprehesive improvement plan for Amberleaf Circle. X g. Continue to enforce the City's code enforcement program, including property maintenance inspectins. X h. Continue to actively enforce land use ordinances. X *Ongoing from 1984 Housing Element (6157d-14) ATTACHMENT N0. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY 5. Preserving Affordability Policies a. Promote and, where possible, require the continued affordability of all units produced with participation by the City or its authorized agents including density bonuses and tax exempt financing. X b. Encourage the continued affordability of thoses units utilizing public funds for rehabilitation. X c. Regulate the conversion of existing apartments units to condominiums to minimize the adverse impact of conversions on the supply of low and moderate income rental housing, keeping in mind that condominiums may offer affordable opportunities for home ownership. X d. Mitigate the displacement impacts occuring as a result of residential demolition through unit replacement or relocation of tenants. X e. Conserve affordable housing opportun- ities in the Coastal Zone through implementation of State requirments for replacement of low and moderate income housing, and for inclusion of affordable units where feasible in new residential construction. X *Ongoing from 1984 Housing Element (6157d-15) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY Programs a. Develop an affordable housing monitoring program, including restrictive convenants for rental units and financing mechanisms, to ensure the long term conservation of affordable units for which City incentives have been provided. X b. Develop a Multi-Family Unit Interest Rate Write Down Program targeted towards publicly-subsidized housing projects with the potential for conversion to market rate. X c. Continue to enforce the City' s condominium conversion ordinance, and evaluate revising the ordinance to allow modified requirements if a portion of the units are set aside for Low and Moderate Income households. (The ordinance revision is proposed for further study). X X d. Continue to pursue production of affordable housing, utilizing CDBG funds Redevelopment Set-Aside funds and other available resources to meet the Redevelopment Agency's ongoing relocation/ replacement of housing obligations. X *Ongoing from 1984 Housing Element (6157d-16) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY e. Establish contact with local community development corporations and other non-profit housing providers to encourage and facilitate the development of affordable housing in Huntington Beach. X f. Meet and consult with mobile home owners who are potential displaces from mobilehome parks which intend to convert to other uses. X g. Provide financial assistance for relocation of persons displaced by redevelopment activities, including occupants of mobile homes. X h. Continue to monitor and assure replacement of low and moderate income housing which is demolished or converted in the Coastal Zone. X 6. Energy Conservation Policies Policies a. Encourage the use of energy conservation devices and passive design concepts which make use of the natural climate to increase energy efficiency and reduce housing cost. X *Ongoing from 1984 Housing Element (6157d-17) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY b. Consider developing retrofit ordinances requiring attic insulation and weatherstripping to be implemented at the time of resale or improvements to the dwelling. (This policy is an ongoing policy that is proposed for further study.) X X c. Investigate the feasibility of the use of renewable energy sources (solar and geothermal ) for hot water, space, and pool heating of larger housing developments. X d. Encourage CC&Rs that protect solar access in new development. X e. Continue to encourage alternative forms of transit such as buses, bicycles, and walking. X Programs a. As part of the update of Division 9 of the City Municipal Code, incorporate development standards which specify required energy conservation features for residential development. X *Ongoing from 1984 Housing Element (6157d-18) ATTACHMENT NO. 2 1989 DRAFT HOUSING ELEMENT POLICIES AND PROGRAMS REQUIRES FURTHER ISSUE AREA NEW ONGOING* STUDY b. Review the City's zoning and subdivision regulations, EIR and site plan review guidelines, and municipal landscaping policies and revise as appropriate to address the issue of solar access. X c. Continue to support and assist in publicizing energy conservation programs offered by the utilities. X *Ongoing from 1984 Housing Element (6157d-19) ATTACHMENT NO. 3 COUNCIL COMMENTS FROM MAY 21, 1990 PUBLIC HEARING (1989 DRAFT HOUSING ELEMENT) Comment Reference Impact 1. Increase Handicapped Program 1. 5, page 3-9, Program supports non-repayable Grant Program page 3-40 grants . Increases in grant amounts would reduce other CDBG funded programs . 2. Add program action to Add Program Action to Expand affordable housing study a mortgage credit issue 2.0, pages 3-11 to opportunities within the City. certificate program 3-16, and program Requires City endorsement of program. description to pages 3-44 to 3-46. 3 . Include subsidence and Policies and programs Provided applicants meet income other soil problems within pages 3-21 to 3-23 . guidelines, rehabilitation loans from rehabilitation loan existing programs may be used for programs . subsidence problems. Relief for individuals not eligible for existing rehabilitation loans would require research into other possible funding sources. 4 . Clarification on condo Policy 13, page 3-11. The condo conversion ordinance was conversion ordinance adopted in 1984, thereby limiting the number of apartment conversions to condos due to stricter condo development standards . Policy 13 proposes to study modifying conversion requirements, if the units are designated as affordable. May result in an increased number of affordable ownership units . COUNCIL COMMENTS FROM MAY 21, 1990 PUBLIC HEARING (Continued) Comment Reference Impact 5 . Include manufactured Policies and Programs Manufactured housing is permitted housing that parallels 3-10 to 3-16. within the R-1 district provided a mobile home density manufactured home suffix (-MFH) has standards . been appended to the zoning. By code this property shall be developed in conformance with R-1 standards. A zone change is necessary to amend the density standards. 6 . Remove limited equity Policy 6, page 3-10 . Policy and program advocate cooperatives Programs under study, maintenance of information on housing page 3-46. mechanism to provide alternative affordable housing strategies . 7. Expand shared housing Program Action 2. 12, Program is presently administered program to include all page 3-14 . from Rodgers Senior Center which people, not just seniors. may not be equipped for expansion. Investigation of a pilot program for all ages, including implementation, is suggested in Program Action 2. 12. 8. Remove policy l(f) - Page 3-17 One of several criteria for site "located outside areas of assessment. Intent of criterium is predominately lower income to avoid compaction problems which concentrations" as it may magnify and ultimately render the discourages rehab of units area blighted in time. in older areas. COUNCIL COMMENTS FROM MAY 21, 1990 PUBLIC HEARING (Continued) Comment Reference Impact 9 . Delete references to Policy 5, pages 3-25, Conservation of affordable housing affordable housing within Program Action 5.8, within the Coastal Zone is required Coastal Zone. page 3-27 by State Law unless determined to be infeasible. If so, it must be provided within 3 miles of the Coastal Zone. State Housing Law requires that the City address programs that preserve affordable housing, including areas within the Coastal Zone. ATTACHMENT NO. 4 THE FOLLOWING COMMENTS WERE SUBMITTED TO CITY STAFF BY THE HUNTINGTON BEACH/FOUNTAIN VALLEY BOARD OF REALTORS AT THE 5:30 PM CITY COUNCIL STUDY SESSION ON MAY 21, 1990 . THESE COMMENTS REFERENCE THE DRAFT HOUSING ELEMENT DATED MAY 1990 . THESE COMMENTS, IN THEIR ORIGINAL FORM, ARE ATTACHED TO THESE COMMENTS. COMMENTS AND STAFF RESPONSE TO COMMENTS ON DRAFT HOUSING ELEMENT 1. COMMENT: Page 3-1, Issue #1: Accessibility for Handicapped: We note that the City has only issued 4 grants in 5 years to make rental units accessible to the handicapped. Staff is suggesting that "better marketing" will increase participation. While we concur that better marketing is a positive step, we continue to recommend that the amount of the grant available to rental property owners be increased to $2, 500 since the current maximum of $1, 500 is simply not enough money for this type of property improvement project . Making a property accessible to the handicapped includes ramping for wheelchairs, widening of interior and exterior doorways, modifications to restroom facilities, etc. Staff ' s response is that the grant amounts are established in the CDBG budget . We recommend that this budget amount be modified as soon as possible. RESPONSE: Monies awarded under this program are grants not loans and do not need to be repaid. The grant amounts for this program are established in the CDBG budget. The intent of this program is to provide funding to property owners for modifications to rental housing units occupied by handicapped individuals. Grant monies may be used for installation of access ramps and widening of doorways. Although grant amounts have been set at $1,500 each to provide the maximum number of grants possible, the amount may be increased with the Director's approval. Although grant amounts are small, analysis suggests active marketing of this grant program may increase the number of program applicants. 2 . COMMENT: Page 3-2, Issue #2 : Adequate Provision: The last program, "Revise the multi-family zoning ordinance to reduce required recreation space and common open space in smaller projects" has been dropped. Staff ' s response is not adequate. We recommend that the program be reinstated in the housing element . RESPONSE: The 1989 Draft Element proposes a review of a variety of multi-family development standards rather than focusing on one aspect of development such as open space. Policy Nos. 8 and 9 (pages 3-10 and 3-11) address a review of development standards to facilitate production of affordable housing. Policy No. 18 (page 3-11) advocates a minimization of adverse impacts when modifying development standards. Program Action 2.7 (page 3-13) expands the original program noted above on page 3-2. The expanded program includes a review of a number of development standards to promote design flexibility while providing a quality residential product at reduced costs. 3 . COMMENT: Page 3-4 . Issue #5: Preserving Affordability Program #1: We feel that a program to "monitor continuing affordability" should apply to rental units only. We are very concerned about the implementation of such a program with regard to ownership units . While staff implies that they cannot differentiate between rental and ownership units, we contend that there is a great deal of difference inherent in the private property rights associated with home ownership. We would like this revised to apply to rental units only and will monitor any implementation of this policy to assure that programs do not conflict with the rights of home ownership. This policy also applies to Page 3-25, Section 5 . 0 Policies and Action Item 5 . 1 : We strongly oppose "continued affordability" , i .e. resale price controls, on for-sale housing. RESPONSE: These policies refer to housing produced with the participation of public funds. Under State Housing Law, publicly funded housing projects are required to remain affordable for a specified period of time depending on the funding source. As such, the City is obligated to develop a monitoring program to ensure continued affordability. Neither State or Federal law distinguishes tenure type for publicly funded projects. To specify rental units only would be contrary to law and limit developer's options. 4 . COMMENT: Pgge 3-11, 4 . 0 Policies : We are pleased to note that homeowners in certain areas of the City can apply for rehabilitation monies to correct problems caused by subsidence and expansive soil . We note that the rehabilitation monies are currently underutilized, and recommend that the "target areas" eligible for these funds be expanded to other areas of the City. Draft Housing Element -2- (6159d) If property owners in certain neighborhoods are experiencing foundation problems for any reason, those neighborhoods are "at risk for deteriorated conditions" and should qualify for assistance. We would also like to recommend that the staff pursue other funding sources for homeowners whose properties may be affected by this issue. (This also applies to Pages 3-38 - 3 .41, 3 . 6 . 1 .2 Assistance to Existing Units . ) RESPONSE• Rehabilitation monies are available to individuals on a City-wide basis. Loan amounts and interest rates vary depending on federal income category and location. Individuals residing within the six community and Neighborhood Enhancement Areas identified within Appendix B of the Draft Element may be eligible for loan amounts at reduced rates. The boundaries of these areas are established on the basis of Federal and State income gudelines and cannot be expanded by the City. Individuals obtaining City rehabilitation loans under existing rehabilitation programs may elect to use these funds for subsidence problems. 5 . COMMENT: Page -25 Preserving Affordability, 5 . 0 Policies : NOTE: The last policy addressed in this section is a NEW ADDITION TO THIS DRAFT and has not been presented previously to the public or any public body. The Planning Commission has not approved this. This proposed new policy and its companion Action Item 5 . 8 on page 3-27, are of great concern to us, and since it has not been presented previously, we have not had the opportunity to investigate the implications . Certainly, we are not suggesting that the City not comply wth State law, but affordable housing which is eliminated in the Coastal Zone is only required by State Law to be replaced within the same city or county and within 3 miles of the Coastal Zone. (Calif. Govt. Code 65590, otherwise known as the "Mello Bill" ) . If this is intended to be nothing more than an acknowledgement of intent to comply with State law, we don' t feel it is necessary to include at all and request that this proposed new policy and action item be deleted from the Housing Element. RESPONSE: Policy No. 5 (page 3-25) and Program Action No. 5.8 (page 3-27) were discussed in the staff report to the Planning Commission dated May 1, 1990. Both the policy and program were approved by the Commission on that date. Please see page 2 of the staff report of May 1, 1990, and Attachment 2, pages 2d and 2e. Draft Housing Element -3- (6159d) The Mello Bill details requirements for the replacement of affordable housing and for the .inclusion of affordable units within new construction in the Coastal Zone. If affordable housing is determined to be infeasible within the Coastal Zone, the housing units must be provided within three miles of the Coastal Zone within the same jurisdiction. Replacement within three miles is allowable only after a determination of infeasibility has been made for affordable housing within the Coastal Zone. 6 . COMMENT• Page 3-28 . Energy Conservation, 6 .0 Policies : While we support energy conservation, we totally oppose this proposed policy to require energy retrofit at time of resale. This program is discriminatory and penalizes people who sell or rehabilitate their property. This is contrary to earlier goals encouraging neighborhood preservation! According to H&L Energy Savers, to retrofit a 1, 500 square foot single family home with attic and wall insulation and weatherstripping costs $2, 900 . This does not include other energy retrofit devices, such as replacing the water heater ($250) , installing a whole house fan to use in place of air conditioning ($575) and plumbing retrofit, such as low flow showerheads, low flush toilets and solar energy panels . We believe that property owners will retrofit if it makes economic sense and that the City should delete this policy and propoe a new policy to develop a voluntary program and offer incentives . We disagree totally with staff ' s comments that this can be perceived as "benefiting the home buyer. " If the home buyer wishes to retrofit, he/she certainly has that perogative. . .but why should a seller be burdened with this responsibility? Perhaps the new owner will tear down the house, or remodel extensively! It makes no sense at all to require the person selling the property to make expensive alterations that the new buyer may not want or need or be willing to pay for! RESPONSE• The referenced policy states that the development of retrofit ordinances should be considered. This policy was originally included in the 1984 Housing Element and proposed for further study; it is included in the same form within the 1989 Draft Element. Draft Housing Element -4- (6159d) 7 . COMMENT: Page 3-38, 3 . 6 . 1. 1 New Construction: We are pleased to support in concept and offer our technical assistance in implementing the Shared Equity Program for first time home buyers. RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision makers. 8 . COMMENT: Page 3-44 , 3 . 6 . 1 Housing Programs Under Study: We are pleased to support in concept and offer our technical assistance to develop and implement, where feasible, the following proposed new programs : Reverse Mortgage Program for Seniors; Non-profit Housing Corporation to develop affordable housing; Neighborhood Housing Service Program to assist in rehabilitation and presevation of housing; and Mobile Home Park Assistance Program to provide assistance to park residents who wish to purchase their park. RESPONSE: This comment is noted and included in the final record of the project for review and consideration by appropriate decision makers. 9 . COMMENTS: Page 3-46 : We are totally opposed to one proposed new Program--Limited Equity Cooperatives . We recommend that any reference to this program be deleted from this document . Limited equity coops do not provide any new housing units, they are poor investments for unsuspecting home buyers, have poor financing prospects, and are virtually a "deadend situation" . We have consulted with REALTORS in the few areas which have this program (Berkeley, Santa Monica) and strongly recommend that this be dropped. With so many positive new programs to pursue, we feel it would be unproductive to even consider a program with such a poor track record. RESPONSE: Limited equity cooperative are included within the Draft Element as a possible housing mechanism for further study. The Draft states that the City could maintain information on this housing technique. Should reference material be requested, information detailing advantages and disadvantages could be disseminated. No program actions are proposed at this time. Draft Housing Element -5- (6159d) 10 . COMMENTS: Finally, we concur with the recommendation of the Huntington Beach Chamber of Commerce that the City use Chapman College income figures whenever possible to determine eligibility for participation in housing programs . These figures are specific to Orange County, are updated quarterly, and are used *by the County of Orange and many other Orange County cities whenever possible. We understand that federal criteria may require the use of HUD figures in certain instances, but do not understand the reluctance of staff to use the more accurate local figures when possible. Generally speaking, Chapman College' s figures are somewhat higher than those produced by HUD, thus allowing a larger number of local residents to qualify for participation. In these housing programs, as noted in many previous sections of this document, much of the money available for rehabilitation, etc. is not used. Perhaps one of the reasons is that income restrictions are too low. Obviously, federal rules must be complied with, but it seems reasonable to use less restrictive criteria whenever possible to facilitate the success of the program. RESPONSE: The City is required to use the income guidelines generated by the U.S. Department of Housing and Urban Development (HUD) for all federal programs utilizing federal funds. In addition, State Redevelopment Law requires the use of HUD income guidelines for all projects employing Redevelopment Set-Aside Funds. With the exception of one program receiving some private funding, all funding sources for housing programs in the City are federal or redevelopment set-aside funds, thereby necessitating the use of HUD figures in determining income categories. Draft Housing Element -6- (6159d) 03 Huntington Beach Fountain Valley Board of REALTORS® Inc. R E A LT O R 8101 Slater Avenue• Huntington Beach,CA 92647•(714)847-6093• FAX(714)841-3375 May 18, 1990 TO: Honorable Mayor and Members of the City Council City of Huntington Beach FROM: Tom Van Tuyl, Board President RE: 1989 Housing Element Update, May 1990 draft Agenda Item D-2, May 21, '1990, City Council meeting Members of the Board of REALTORS have been reviewing the City's draft Housing Element Updates for the past 11 months. This is the third revision of the draft document. Each revision has been an improvement over the last; in fact, we submitted 17 pages of typed comments on the first draft, and only 5 pages of typed comments on the second draft. We are pleased to note that many of our suggested corrections or comments on earlier drafts have been incorporated into this third revision, and we would like to compliment staff for their efforts to improve this document so that it is an accurate reflection of the housing needs of our community. As you will note from the following comments, we are still requesting several changes or corrections to this third draft, but in many instances, we are not only offering our support but also our technical assistance to implement some of the proposed programs. We acknowledge that your staff report contains our April 23, 1990, letter to the Planning Commission and staff's comments on our recommendations. We ask that you review those comments and' consider incorporating our suggested changes. The major issues which still need to be resolved are as follows: Page -1. Issue # : A- . .g ; ility for Handicapped: We note that the City has only issued 4 grants in 5 years to make rental units accessible to the handicapped. Staff is suggesting that "better marketing" will increase participation. While we concur that better marketing is a positive step, we continue to recommend that the amount of the grant available to rental property owners be increased to $2, 500 since the current maximum of $1, 500 is simply not enough money for this type of property improvement project. Making a property accessible to the handicapped includes ramping for wheelchairs, widening of interior and exterior doorways, modifications to restroom facilities, etc. Staff's response is that the grant amounts are OFFICERS -- TOM VAN TUYL, President • FLORENCE LUBOW, First Vice President LUCILLE HARMON, Second Vice President • RITA SPIRA, Secretary/Treasurer DIRECTORS JAN SHOMAKER • BARRY BUSSIERE• NANCY RHYME• VICKY BAGLEY 9 JOHN CLOUGHEN WILL L. WOODS, Executive Vice President• JUDITH A. SEVERY, Vice President/Public Affairs established in the CDBG budget. We recommend that this budget amount be modified as soon as possible. Page -3-2. Issue #2 : Adernuate Provision: The last program, "Revise the multi-family zoning ordinance to reduce required recreation space and common open space in smaller projects" has been dropped. Staff's response is not adequate. We recommend that the program be reinstated in the housing element. Page 3-4 Issue #5: Preserving Affordability Program #1,y We feel that a program to "monitor continuing affordability" should apply to rental units only. We are very concerned about the implementation of such a program with regard to ownership units. While staff implies that they cannot differentiate between rental and ownership units, we contend that there is a great deal of difference inherent in the private property rights associated with homeownership. We would like this revised to apply to rental units only and will monitor any implementation of this policy to assure that programs do not conflict with the rights of home ownership. This policy also applies to Page 3-25. Section 5.0 Policies and Action Item 5.1: We strongly oppose "continued affordability", i.e. resale price controls, on for-sale housing. Page 3-22. 4.0 Polic_ies: We are pleased to note that homeowners in certain areas of the city can apply for rehabilitation monies to correct problems caused by subsidence and expansive soil. We note that the rehabilitation monies are currently underutilized, and recommend that the "target areas" eligible for these funds be expanded to other areas of the City. If property owners in certain neighborhoods are experiencing foundation problems for any reason, those neighborhoods are "at risk for deteriorated conditions" and should qualify for assistance. We would also like to recommend that the staff pursue other funding sources for homeowners whose properties may be affected by this issue. (This also applies to Pages 3-38 - 3-41, 3.6.1.2 Assistance to Existing units.) Page 3-25 Preserving Affordability. 5.0 Policies: NOTE: The last policy addressed in this section is a NEW ADDITION TO THIS DRAFT and has not been presented previously to the public or any public body. The Planning Commission has not approved this. This proposed new policy and. its companion Action Item 5.8 on page 3-27, are of great concern to us, and since it has not been presented previously, we have not had the opportunity to investigate the implications. Certainly, we are not suggesting that--the City not comply with state law, but affordable housing which is eliminated in the Coastal Zone is only required by State Law to be replaced within the same city or county and within 3 miles of the Coastal Zone. (Calif. Govt. Code 65590, otherwise known as the "Mello bill") If this is intended to be nothing more than an acknowlegement of intent to comply with state law, we don't feel it is necessary to include at all and request that this proposed new policy and action item be deleted from the Housing Element.. Page 3-28. Energy Conservation, 6.0 Policies: While we support. energy conservation, we totally oppose this proposed policy to require energy retrofit at time of resale. This program is discriminatory and penalizes people who sell or rehabilitate their property. This is contrary to earlier goals encouraging neighborhood preservation! According to H&L Energy Savers, to retrofit a 1,500 square foot single family home with attic and wall insulation and weatherstripping costs $2, 900. This does not include other energy retrofit devices, such as replacing the water heater, ($250) installing a whole house fan to use in . place of airconditioning ($575) and plumbing retrofit, such as low flow showerheads, low flush toilets and solar energy. panels. We believe that property owners will retrofit if it makes economic sense and that the City should delete this policy and propose a new policy t.Q develop a voluntary program and offer incentives. We disagree totally with staff's comments that this can be perceived as "benefiting the home buyer." If the home buyer wishes to retrofit, he/she certainly has that prerogative: . .but why should a seller be burdened with this responsibility? Perhaps the new owner will tear down the house, or remodel extensively! It makes no sense at all to require the person selling the property to make expensive alterations that the new buyer may not want or need or be willing to pay for! Page 3-38. 3.6.1.1 New Construction: We are pleased to support in concept and offer our technical assistance in implementing the Shared Eemity Program for first time home buyers. .Page 3-44, 3.6.2 Housing Programs Under Study* We are pleased to support in concept and offer our technical assistance to develop and implement, where feasible, the following proposed new programs: Reverse Mortgage Program for Seniors; Non-profit Housing Corporation to develop affordable housing; Neighborhood Housing Service Program to assist in rehabilitation and preservation of housing; and Mobile Home Park Assistance Program to provide assistance to park residents who wish to purchase their park. Page 3-46: We are totally opposed to one ,proposed new program--Limited Fcm; y Cooperatives_ We recommend that any reference to this program be deleted from this document. Limited equity coops do not provide any new housing units, they are poor investments for unsuspecting.homebuyers, have poor financing prospects, and are virtually a "deadend situation." We have consulted with REALTORS in the few areas which have this program (Berkeley, Santa Monica) and strongly recommmend that this be dropped. With so many positive new programs to pursue, we feel it would be unproductive to even consider a program with such a poor track record. Finally, we concur with the recommendation of the Huntington Beach Chamber of Commerce that the City use Chapman College income figures .whenever possible to determine eligiblility for participation in housing programs. These figures are specific to Orange County, are updated quarterly, and are used by the County of Orange and many .other Orange County cities whenever possible. we understand that federal-criteria may require the use of HUD figures in certain instances, but do not understand the reluctance of staff to use the more accurate local figures when possible. Generally speaking, Chapman College's figures are somewhat higher than those produced by HUD, thus allowing a larger number of local residents to qualify for participation. In these housing programs, as noted in many previous sections of this document, much of the money available for rehabilitation, etc. is not used. Perhaps one of the reasons is that income restrictions are too low. Obviously, federal rules must be complied with, but it seems reasonable to use less restrictive criteria whenever possible to facilitate the success of the program. .... .� of land, but land zoned for higher densities commands a higher market price. For this reason, density bonuses rather than zoning changes may be the preferred vehicle for reducing land costs. The Housing Element identifies the .use of land assemblage and write-down as an incentive for the provision. .of affordable units. Labor Costs: Labor is the third most expensive compnent in building a house, constituting an estimated 17% of the cost of4building a single-family dwelling. The cost of union labor in the construction trades has increased steadily since April 1974. The cost of non-union labor, however, has not experienced such significant increases. Because of-increased construction activity, the demand for skilled labor has increased so drastically that an increasing number of non-union employees are being hired in .addition to unionized employees, thereby lessening labor costs. Financing: While interest rates have fallen more than 10 percent from their near 20 percent high in the early 1980s, they still have a substantial impact on housing costs which is felt by renters, purchasers and developers. It should be noted that some mortgage financing is variable rate, which offers an initial lower interest rate than fixed financing. The ability of lending institutions to raise rates to adjust 1 for inflation may cause many existing households to overextend themselves I financially, as well as returning to a situation where high financing costs substantially constrain the housing market. An additional obstacle for the first-time home buyer continues to be the 10-20% downpayment required by lending institutions. The median sales price of a single-family home in Huntington Beach (1988) was $222,000. A $199,800 mortgage (10% down payment) amortized over 30 years at an interest rate of 10.5% would result in monthly house payments of $1 ,827 . This level of payment eliminates Huntington Beach' s very low, low and moderate income households from the for-sale housing market. Condominiums do, however, offer an alternative homeownership opportunity for many of the City's moderate income households.- Interest rates are determined by national policies and economic conditions, and there is little that local governments can do to affect these rates . Jurisdictions can, however, offer interest. rate write-downs to extend home purchase opportunities to lower income households . Through its mortgage revenue programs, the City provides interest rate write-downs to benefit Low and Moderate Income households. A special multi -family unit interest rate write-down program is being developed by the City to conserve existing Federally-subsidized housing projects . Finally, the City is developing a shared equity program for downpayment assistance to { first-time homebuyers and is exploring the implementation of a mortgage I lcredit certificate program. t Profit, Marketing and Overhead: Developer profits generally comprise 10-15% of the selling price of single-family homes and slightly lower for condominiums. However, in communities like Huntington Beach where the market demand for housing is high in comparison to the available housing supply, and home purchasers often desire more amenities, developers are able to command higher prices and often realize greater margins of profit. 1y r Accomplishment: This program has been completed since adoption of the 1984 Housing Element. All substandard. units have been rehabilitated, public improvements have been completed, and all owners have executed a maintenance-agreement with the City. _ Program: Develop and implement a City-wide maintenance ordinance. Accomplishment: The City has recently expanded its ; ode enforcement program to encompass property maintenance violations, and has increased the number of code enforcement officers to four to more adequately address code complaints. ISSUE #5 - PRESERVING AFFORDABILITY Program: Oversee the continued affordability of low and moderate income units produced with tax exempt financing. Accomplishment: The City has hired a consultant to develop a monitoring 1program to ensure the continued affordability of low and moderate density. I bonus units for which public subsidy has been provided. Once in place, bi -annual monitoring will be conducted to verify the income of the tenant, and to verify the continued affordability of the unit. Program: Prepare a condominium conversion ordinance to regulate the conversion of rental housing to ownership units in order to mitigate impacts on affordable rental housing. Accomplishment: The City adopted its condominium conversion ordinance in November 1984 which requires converted units to conform to the requirements of the City's Planned Unit Development (PUD) Ordinance. Since most existing multi -family housing units have been developed to standards that generally require substantially less open space and parking than that required under the PUD Ordinance, these requirements serve as a significant disincentive for condominium conversion. Program: Continue to pursue the production of affordable housing. Accomplishments: The City has participated in numerous affordable housing developments since adoption of its 1984 Housing Element. They have utilized a combination of City incentives, such as density bonus and bond financing , combined with outside funding sources to achieve a total of 391 affordable units . Specific publicly-assisted residential projects with an affordable housing component developed since adoption of the 1984 Housing Element include the following: 3-4 r 3.2 Goals, Policies, and Program Actions Background The City of Huntington Beach adopted a series of goals and policies as part of its 1984 Housing Element to guide the development and implementation of its housing program. As part of .�he current Housing Element update, these adopted goals and policies have been evaluated in terms of their effectiveness and actual results in implementation. In addition, the adopted goals and policies were reviewed as to their appropriateness in addressing the housing needs identified in this Housing Element update. The following goals and policies reflect a revision to those previously adopted to incorporate what has been learned from the ..prior element, and to adequately address the community' s identified housing needs . These goals and policies will serve as a guide to City officials in daily decision making. Housing Program The City of Huntington Beach has adopted three goals for its housing program which are consistent with State and Regional housing policies. These goals are: 1 . The attainment of decent housing within a satisfying living environment for households of al'1 socioeconomic, racial , and ethnic groups in Huntington Beach. 2. The provision of a variety of housing opportunities by type, tenure, and cost for households of all sizes throughout the City. 3 . The development of a balanced residential environment with access to employment opportunities, community facilities, and adequate services . In order to progress toward the attainment of these goals, the City has committed itself to specific policies and programs . The policies are organized around five issue areas which are identified by the California Department of Housing and Community Development as important priorities in addressing local housing problems . This section presents a discussion of the problems inherent in each of the issue areas, followed by policies adopted by the City to resolve these problems . The program actions intended to effect their solution then are discussed, including anticipated impacts, responsible agencies, funding source, and the time frame for completion of each program. In aggregate, the Element' s program actions set forth the following five year housing goals , as detailed in Table 4A: ,, Total Units to be Constructed: 7,527 total units/675-750 assisted Total Units to be Rehabilitated: 680 I Total Units to be Conserved: 965 - 1 ,015 A comprehensive discussion of the existing and proposed programs of the Housing Element is contained in Section 3.6. 3-6 TABLE 4A HOUSING ELEMENT PROGRAM SUMMARY Number of Units Program Action to be Assisted New Construction: 1 .2 4 200 2.2 50-100 2.9 300 2. 13 125-150 Total 675-750 Rehabilitation: 1 .5 10 1 .6 10 4.2 400 4.3 100 4.4 80 4.6 80 Total 680 Conservation: 2.5 815 2. 12 150-200 Total 965-1 ,015 3-6. 1 Responsible Agencies: Huntington Beach Economic Development Department (EDD) . Funding Source: CDBG funds. _ Schedule: Ongoing. 4 1 .2 Action: The City will continue to make available Redevelopment Agency-owned property within the Talbert-Beach redevelopment area for the construction of senior citizen and/or low and moderate income housing. Provide for reduced development standards through use of the City's Senior Residential Suffix zoning. Anticipated Impact: Aid in production of up to 200 units.. for senior citizen and affordable housing. Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. Funding Source: Redevelopment Set-Aside Fund. Schedule: Based on final acquisition of parcels : 1 .3 Action: Implement state and federal laws for access and adaptability for the physically handicapped. Continually adopt updates to the State Uniform Building and Housing Codes to reflect current accessibility requirements. Anticipated Impact: More locational choice for the physically handicapped due to an increase in the supply of suitable rental units . Responsible Agencies : Huntington Beach EDD and Community Development Department (CDD) . Funding Source: None necessary. Schedule: Ongoing. 1 .4 Action : Continue to coordinate with and financially support the Dayle MacIntosh Center to maintain a directory of accessible housing for handicapped persons. Anticipated Impact: Assistance to handicapped persons in locating housing. Responsible Agencies : Huntington Beach EDD and the Dayle MacIntosh Center. Funding Source: CDBG funding. Schedule: Ongoing. 3-8 ° Review all regulations, ordinances, departmental processing procedures, and residential fees related to rehabilitation and/or construction to assess their impact on housing costs, and revise as appropriate. • Provide the management and personnel resources necessary to carry out identified housing programs and responsibilities. .r ° Continue and expand utilization of Federal and State housing assistance programs . • Promote the availability of sufficient rental housing to afford maximum choice of housing type for all economic segments of the community. community. • Review the City's condominium conversion ordinance., and consider revising to allow modified requirements for units which are set aside for low and moderate income households. ° Encourage the retention of adequate numbers of mobile homes and investigate areas for potential new mobile home zoning. ° Continue to enforce the City's mobile home conversion ordinance. • Continue to coordinate with local social service providers and notify of available City funding to address the needs of the City' s homeless population. • Encourage the provision of alternative housing through replacement housing and/or relocation for low or moderate income households displaced by public or private developments. ° Ensure that any adverse impacts are minimized when increasing densities or relaxing standards in order to provide for low and moderate income housing. • Investigate the development of single room occupancy (SRO) hotels to provide housing opportunities for very low income residents . 2.0 Programs 2. 1 Action: Apply to the State Mortgage Bond Allocation Committee for single-family bond allocations to enable below market rate financing to be offered on qualifying projects to moderate income. 'households . Anticipated Impact: Make a greater share of housi-ng stock affordable to first-time buyers . . ' Responsible Agencies : Huntington Beach EDD. Funding Source: Bond proceeds . Schedule: Ongoing. 3-11 Funding Source: Huntington Beach EDD Administrative funds/OCHA, potential use of Redevelopment Set-Aside to augment rental subsidies. ScheTule: Ongoing. 2.6 Action: Continue to contract with the Orange ,County Housing Authority to screen and verify incomes of potential participants in housing programs. Anticipated Impact: Ensure that recipients of affordable housing are qualified for such housing. Responsible Agencies: Huntington EDD/OCHA. Funding Source: Huntington Beach EDD Budget. Schedule: Ongoing. 2.7 Action: Review development standards, such as minimum size, open space, parking, to determine which ones can be relaxed in order to reduce housing cost; process appropriate code revisions as part of the zoning ordinance update. Anticipated Impact: Reduction in the cost of housing. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budget.' Schedule: 1989-90. 2.8 Action : Evaluate the feasibility of developing a specific procedure for fast track processing projects with an affordable housing component. Anticipated Impact: Reduction in holding costs for affordable housing projects, thereby improving the economic feasibility of such projects . Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets . Schedule: 1989-90. 2.9 Action : Continue to provide tax exempt mortgage financing for new multi -family housing . 3-13 Anticipated Impact: Increased supply of rental housing stock affordable to lower income households. Based on previous levels of developer participation, the City's goal is to provide mortgage financing for three projects (estimated 300 units) over the next five years . Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. 1 Funding Source: Tax exempt financing. Schedule: Ongoing as projects meet criteria. - 2. 10 Action: Continue to operate Project Self-Sufficiency to address the needs of low income, single parents by offering rental assistance, job training,and other needed services. Anticipated Impact: Curtail additional single parent households from .becoming homeless. Responsible Agencies: Huntington Beach EDD. Funding Sources: CDBG funds and private donations. Schedule: Ongoing. 2. 11 Action: Continue to offer financial assistance to local groups which provide services to the area's homeless population. Provide public notification of the availability of funds through newspaper advertisements, as well as direct notification to local service providers. Anticipated Impact: Address the needs of the City' s homeless through provision of 15% of the City' s CDBG budget for social services. Responsible Agencies: Huntington Beach EDD. Funding Source: CDBG funds. Schedule: Ongoing. 2. 12 Action : Actively market the City's shared housing program to increase the number of roommate matches made between senior citizens . Utilize the City' s Public Information Office to advertise the program through such methods as Public Television and placement of brochures in local community centers . Inve-stigate developing a pilot project to match residents of varying age categories which links up with Project Self-Sufficiency. 3-14 Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989-90. 2. 16 Action: Investigate the use of specific plans _to promote a balance of housing and open space, and to reduce the per unit cost of housing through such methods as clustered housing, zero lot line on smaller lots, flexible setbacks, reduced parking standards and lot sizes . Anticipated Impact: Reduced housing development costs and associated decreases in sales/rental prices. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989-90. 2. 17 Action: Investigate the feasibility and a possible ordinance to permit Single Room Occupancy (SRO) hotels as a mechanism for providing affordable housing. Anticipated Impact: Facilitate the development of SROs . Responsible Agency: Huntington Beach CDD. Funding Source: Department Budgets . Schedule: Complete study and prepare a report within one year. 2. 18 Action : Encourage developers to pursue "gap" financing from the ` Orange County Housing Authority for residential projects offering affordable units . Anticipated Impact: Increase the supply of affordable housing by offering financial assistance to project developers . Responsible Agency: Huntington Beach EDD. Funding Source: Orange County Housing Authority. Schedule: Ongoing. _ 3-16 Responsible Agencies : Huntington Beach EDD and CDD. Fund tng Source: EDD Administrative funds . Schedule: . Ongoing. - 4.6 Action: Continue to implement the comprehensive improvement plan for Commodore Circle. Anticipated Impact: Rehabilitation of 80 units- and initiation of occupancy and maintenance standards. Responsible Agency: Huntington Beach EDD. Funding Source: CDBG funds; Rental Rehabilitation. Schedule: Rehabilitation and public improvements complete in 1989. Maintenance standards complete in 1990-1991 . 4.7 Action: Continue to enforce the City's code enforcement program, including prorerty maintenance inspections. Anticipated Impact: Provide an enforcement tool to insure uniform maintenance consistent with the standard prevalent in the community. Responsible Agency: Huntington Beach CDD. Funding Source: Department Budget. Schedule: Ongoing. 3-23 i 3.6 Description- of Implementing Programs The Housi_ng Element describes the housing needs of the City's current and projected population, as well as the specific needs_ resulting from the deterioration .of older units, lack of affordable housing for lower income groups, and special needs for certain segments of the City' s population. The goals and policies contained in the Housing Element address the City's identified housing needs. These goals and policies.,are implemented through a series of housing programs that are funded and administered through a variety of local , regional , State and Federal agencies. Section 3.2 of the Housing Element sets forth the program actions the City intends to implement over the five year period of the Element. The following section provides a more detailed description of these programs and references the program action(s) related to each housing program. In addition, in order to further expand affordable housing opportunities in Huntington Beach, several additional housing programs are described which are under study but have not yet been committed to by the City. 3.6. 1 Current Housing Programs and Recent Actions The City takes an active role in providing housing assistance through its Housing and Community Development programs. In addition, the City has taken a number of actions in the past to further the production of housing and to improve the City's housing stock. The City's current housing programs and recent actions related to housing are described in the following section. 3.6. 1. 1 New Construction Tax-Exempt Mortgage Program The City maintains an on-going program to provide tax-exempt mortgage financing for construction and permanent loans for multi -family housing. The City sells bonds to provide the financing for the program. . The income rom the bonds is tax-exempt which increases the effective net yield to the bond holder. - Federal law requires that 20 percent of the total units in a bond-financed project be reserved for lower income households . Recent State legislation requires that one half of the reserved units be set aside for Very Low Income households . (Program Action 2. 1 , 2.9) Density Bonus Incentives Pursuant to State law, if a developer allocates at least 20 percent of the units in a housing project to lower income households',- 10 percent for very low income households, or at least 50 percent for "qualifying residents' (e.g. senior citizens) , the City must either a) grant a density bonus of 3-36 According to the Housing Authority, Huntington Beach has been one of the more aggressive communities in the region in pursuing needed rental subsidies. As of March 1, 1989, Huntington Beach had secured a total allocation of 577 housing vouchers and certificates. Consistent with the City's Housing_ Assistance Plan, the City's five yeas.. assistance goal is for an additional 238 rent subsidies. However, it .is impossible to know how many additional housing vouchers the City will actually receive from HUD. (Program Action 2.5) Community and Neighborhood Enhancement The Community and Neighborhood Enhancement Program is a comprehensive program designed to promote and assist in the upgrading of declining residential neighborhoods within the City. This program is designed to meet individual needs, to be responsive to the social and economic circumstance which exists within each neighborhood, to* have strong resident and property owner support, and to be limited to a few priority areas so that the full benefit of a concentrated effort might be realized by generating substantial physical and visual improvement within these areas. The areas within the Neighborhood Enhancement Program include the Oakview, Washington Street, Commodore Circle, South Shores, Liberty, Oldtown and Townlot Neighborhoods. Rehabilitation loans are provided through the City's Housing Rehabilitation Loan Program and Rental Rehabilitation Program, described in the following sections. There is a continuing effort to provide housing rehabilitation assistance, combined with needed public improvements, to promote the renovation of existing units within these neighborhoods with an estimated $650,000 to be budgeted over the next fiscal year for this program. (Program Actions 4. 2, 4.3, 4.4, 4.6) Housing Rehabilitation Loan Program This program utilizes CDBG funding to provide low interest loans to owners of residential properties. Deferred Payment rehabilitation loans of up to $10,000 are available to Very Low Income owner-occupied households. These loans are due and payable with 6% one-time only interest fee at the time of sale or transfer of ownership. The City als-o- offers the following types of below market interest rate loans for residential rehabilitation: a)3% loans available to lower income households ; b)6% loans available to median income households within identified Community and Neighborhood Enhancement target areas; and c)8°lo loans available to above-median income households within identified Community and Neighborhood Enhancement target areas for code compliance repairs only. The maximum loan amount for a below market interest rate loan is $15,000. The City of Huntington Beach has effectively marketed its Housing Rehabilitation Loan Program, with approximately 80 loa-ns processed each . year. -This success is due in large part to the City's aggressive pursuit of housing rehabilitation as part of the Community and Neighborhood Enhancement Program. Rehabilitation loans are also offered to income-qualified property owners as part of the City's code enforcement activities . (Program Actions 4.2, 4.4, 4.6) 3-39 TABLE 31 CITY OF HUNTINGTON BEACH MONTHLY RENTAL RATES BY SUBAREA: 1988 Number of Location Units Median Average-. Range Downtown/Old Town 116 $725 $739 $475 - $1,200 Harbor/Bolsa Chica 52 $850 $850 $625 $1 ,250 North Central 91 $700 $740 $550 - $1 ,400 Southeast 37 $770 $779 $525 - $1, 100 Totals 296 $750 $764 $475 - $1,400 Source: Orange County Register, Sunday Editions: 1/3/88, 4/3/88, 8/7/88, 12/4/88. Compiled by Cotton/Beland/Associates, Inc. 4.5 Share of Region's Housing Needs State law. requires jurisdictions to provide for their share of regional housing needs. The Southern California Association of Governments (SCAG) has determined the 1989-1994 needs for the City of Huntington Beach, and has estimated the number of households which the City will be expected to accommodate during this period. Future housing needs reflect the number of new units needed in a jurisdiction based on households which are expected to reside within the jurisdiction (future demand) , plus an adequate supply of vacant housing to assure mobility and new units to replace losses. These needs were forecast by the 1988 Regional Housing Needs Assessment (RHNA) , which considered on a regional and local level : market demand for housing, employment opportunities, availability of suitable sites for public facilities, commuting patterns, type and tenure of housing need, and housing needs of farm workers . According to the model , housing to accommodate 6,228 households would need to be added to the City's June 30, 1989 total hous-eholds by July 1994 to fulfill the City's -share of regional housing needs . Based on the distribution of regional income, this total can be further divided among HUD's four income groups to identify the types of households to be provided for as follows : TABLE 31A CITY OF HUNTINGTON BEACH 1989-1994 HOUSEHOLD NEEDS BY INCOME GROUP Very Low (0-50% County median.'income 984 (15.8%) Low (50-80% County median income) 1 , 264 (20.3%) Moderate (80-120% County median income) 1 ,370 (22.0%) Upper (over 120% County median income) 2,610 (41 .9%) Total Households 6,228 Source: SCAG Regional Housing Needs Assessment, June 1988 (Draft) 4-26 Labor Costs: Labor is the third most expensive component in building a house, constituting a;, estimated 17% of the cost of building a single-family dwelling. The cost of union labor in the construction trades has increased -- steadil=y.since April 1974 . The cost of non-union labo-r, however, has not experienced such .significant increases . Because of increased construction activity, the demand for skilled labor has increased so drastically that an increasing number of non-union employees are.peing hired in addition to unionized employees, thereby lessening labor costs . Financing: While interest rates have fallen more than 10 percent from their near 20 percent high in the early 1980s , they still have a substantial impact on housing costs which is felt by renters , purchasers and developers . It should be noted that some mortgage financing is variable date, which offers an initial lower interest rate than fixed financing. The ability of lending institutions to raise rates to adjust for inflation may cause many existing households to overextend themselves financially, as well as returning to a situation where high financing costs substantially constrain the housing market. An additional obstacle for the first-time home buyer continues to be the 10-20% downpayment required by lending institutions. The median sales price of a single-family home in Huntington Beach (1988) was $222,000. A $199,800 mortgage amortized over 30 years at an interest rate of 10. 5% would result in monthly house payments of $1,827 . This level of payment eliminates Huntington Beach's very low, low and moderate income households from the for-sale -housing market. Condominiums do, however, offer an alternative homeownership opportunity for many of the City' s moderate income households . Interest rates are determined by national policies and economic conditions, and there is little that local governments can do to affect these rates. Jurisdictions can, however, offer interest rate write-downs to extend home purchase opportunities to lower income households. In addition, government insured loan programs may be available to reduce — mortgage downpayment requirements . Profit, Marketing and Overhead: Developer profits generally comprise 10-15% of the selling price of single-family homes and Blighty lower for condominiums. However, in communities like Huntington Beacfi where the market demand for housing is high in comparison to the available housing supply, and home purchasers often desire more amenities , developers are able to command higher prices and often realize greater margins of profit. J• Rising marketing and overhead costs have contributed to the rising costs — of housing. Inflation has spurred much of the increase in marketing and overhead. Intense competition among developers has -necessitated more advertising, more glamorous model homes and more expensive marketing' strategies to attract buyers . 6-2 Arized to Publish Advertisements of all kinds including public notices by Decree of the Superior Court of Orange Id County, California. Num%-rA-6214, September 29, 1961, and i A-24831 June 11. 1963 STATE OF CALIFORNIA n ` t� County of Orange G� � am a Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the ORANGE COAST DAILY I_ WLIC NOTICE PILOT, a newspaper of general circulation, $10EOF PUp 4*19ARING printed and published in the Cite of Costa Mesa, DRAR1f 1689 HOUSING P P •7 ELEMENT UPDATE FOR y Count of Orange, State of California, UNTINGTON BE iaand that THE CITY BEACH ACH attached Notice is a true and com lete co aS NOTICE HEREBY P PY GIVEN that thhee Huntington was printed and published in the Costa Mesa Beach City Council will hold P p a public hearing in the Coun- cil Chamber at the Hunt- Newport Beach, Huntington Beach, Fountain In . gton Beach Civic Center, 2000 Main Street, Hunt- Valley, Irvine, the South Coast communities and Ington Beach,California,on the date and at the time in- Laguna Beach issues of said newspaper to wit ,dicated below to receive and consider the statements of the issue(s) of: all persons who wish to be heard relative to the appli- cation described below. DATE/TIME: Monday, May 10, 1990 May 21,1990,7:00 PM APPLICATION NUMBER: Draft 1989 Housing Element Update of the City of Hunt- Ington Beach General Plan APPLICANT:City of Hunt- Ington Beach LOCATION:City-wide ZONE:All districts REQUEST: Review and , adopt updated Housing Ele- ment which conforms with new Me mandated re- Iquiremenis. ENV10ONMENTAL (STATUS:Subject document establishes CRy policy for hoGsing issues and Is assessed under Negative Declaratien No.90-11. Indi- vidual projects impement- Ing thesepolicies will be sub- ject to environmental assessment at the time of application. ON FILE: A copy of the prodeclare, under penalty of perjury, that the the City Clan 'stis iceon a d the City Clerk's office and the Community Develop- foregoing is true and correct... ment Department, 2000 Main Street, Huntington Beach,California 92648,for May 10, 0 Inspection by the public Executed on. t gg_ after May 18,1090. ALL IbiTERESTED PER- at Costa Mesa, Califomia SONS are invited to attend said hearing and express opinions or submit evidence for or against the application as outlined above. If there ulnQ Y\S),A are any further questions, please call Scott Hess,. Signature Senior Planner, or Ruth Lamlaee Assistant Planner, at 53"6 1. C-' �yockway, Hunt- Inyto7► City Mark Pu4llllhed Orange Ooast Dafly Pilot May 10, 1990 Th-384 PROOF OF PUBLICATION - a NOTICE OF PUBLIC HEARING DRAFT 1989 HOUSING ELEMENT UPDATE FOR THE CITY OF HUNTINGTON BEACH NOTICE IS HEREBY GIVEN that the Huntington Beach City Council will hold a public hearing in the Council Chamber at the Huntington Beach Civic Center, 2000 Main Street, Huntington Beach, California, on. the date and at the time indicated below to receive and consider the statements of all persons who wish to be heard relative to the application described below. DATE/TIME: Monday, May 21, 1990 , 7 : 00 PM APPLICATION NUMBER: Draft 1989 Housing Element Update of the City of Huntington Beach General Plan APPLICANT: City of Huntington Beach LOCATION: City-wide ZONE: All Districts REOUEST: Review and adopt updated Housing Element which conforms with new State mandated requirements . ENVIRONMENTAL STATUS : Subject document establishes City policy for housing issues and is assessed under Negative Declaration No . 90-11 . Individual projects implementing these policies will be subject to environmental assessment at the time of application. ON FILE: A copy of the proposed request is on file in the City Clerk' s office and the Community Development Department, 2000 Main Street, Huntington Beach, California 92648 , for inspection by the public after May 18, 1990 . ALL INTERESTED PERSONS are invited to attend said hearing and express opinions or submit evidence for or against the application as outlined above. If there are any further questions please call Scott Hess , Senior Planner , or Ruth Lambert, Assistant Planner, at 536-5271 . Connie Brockway Huntington Beach City Clerk (5483d-5) Cil?y df'-Seal Beach County of Orange Huntington Beach Tomorrow Planning Department EMA-Advance Planning 411 Sixth Street 211 Ei„hth Street P.O. Box 4048 Huntington Beach, CA 92648 Seal Beach, CA 90740 Santa Ana, CA 92702-4048 City of Fountain Valley City of Westminster Jim Miller, Director Planning Department Community Development Shelter for Homeless 10200 Slater Avenue 8200 Westminster Blvd. 8291 Westminster Blvd. Fountain Valley, CA 92708 Westminster, CA 92683 Suite 215 Westminster, CA 92683 Amigos De Bolsa Chica City of Newport Beach City of Costa Mesa 15545 Computer Lane Advance Planning Dept. Planning Division Huntington Beach, CA 92649 3300 Newport Blvd. P.O. Box 1200 Newport Beach, CA 92659-1768 Costa Mesa, CA 92628-1200 H.B. Chamber of Commerce Council on Aging HB/FV Board of Realtors 2213 Main Street #22 1706 Orange Avenue 8101 Slater Avenue Huntington Beach, CA 92648 Huntington Beach, CA 92648 Huntington Beach, CA 92647 ATTN: Kim Barone ATTN: Judith Severy So. Cal. Assoc. Governments GoldenState Mobilehome Owner's Friends of Hunt. Wetlands 600 S. Commonwealth Ave. League 9122 Christine Drive Suite 100 11021 Magnolia Blvd. Huntington Beach, CA 92646 Los Angeles, CA 90005 Garden Grove, CA 92642 ATTN: Richard Spicer ATTN: Virginia Day E.T.I. Corral 100 Coastal Conservancy Huntington Beach Company Bonnie Wakeham P.O. Box 66494 2110 Main Street 20031 Big Bend Los Angeles, CA 90066 Huntington Beach, CA 92648-2499 Huntington Beach, CA 92646 ATTN: Ruth Galanter ATTN: R. J. Work H.B. Historical Society Building Industry Assoc.-O.C. Richard Harlow c/o Newland House Museum 2001 E. 4th. Street 18652 Florida Street 15820 Beach Blvd. Santa Ana, CA Suite 100 Huntington Beach, CA 92648 Huntington Beach, CA 92646 ATTN: Guy Guzzardo Roger Slates Orange County MEET Ms. Gaynor Creger 18652 Florida, Suite 100 P.O. Box 17666 Huntington By The Sea Huntington Beach, CA 92649 Anaheim, CA 92817-7666 21851 Newland Street Space 61 Huntington Beach, CA 92646 w 5 ¢ t :Stisi•:ti' -1 -r..t'r' .��''Y "•�`. ,.r.Yr.•_- �, ♦ „'• __ rw r Office of the City Clerk �- /��fc\ City of Huntington Beach ' P.O.BOX 190 , CALIFORNIA 92648 C' ;� L z 3 L ti -•;;t Soo Cal. Assoc. Governments - 600 S. Commonwealth Ave. Suite 101' SOUT900A 30013152055 Los An e �i3Filfi#iC}1Cf'IC 77hi i~:f;Pl~ [7 ATTN: Ri US. §::77H IS T--#1 FL. i PETURN TO SENDER ,v Office of the City Clerk ICity of Huntington Beach •��, I P.O.BOX 190 CALIFORNIA 92648 01, So. Cal-. Assoc. Governments 818 W. 7th Street #12FL Los Angeles, CA 90017-3407 ' NOTICE OF PUBLIC HEARING DRAFT 1989 HOUSING ELEMENT UPDATE FOR THE CITY OF HUNTINGTON BEACH NOTICE IS HEREBY GIVEN that the Huntington Beach City Council will hold a public hearing in the Council Chamber at the Huntington Beach Civic Center, 2000 Main Street, Huntington Beach, California, on the date and at the time indicated below to receive and consider the statements of all persons who wish to be heard relative to the application described below. DATE/TIME: Monday, May 21, 1990, 7: 00 PM APPLICATION NUMBER: Draft 1989 Housing Element Update of the City of Huntington Beach General Plan APPLICANT: City of Huntington Beach LOCATION: City-wide ZONE: All Districts REOUEST: Review and adopt updated Housing Element which conforms with new State mandated requirements . ENVIRONMENTAL STATUS: Subject document establishes City policy for housing issues and is assessed under Negative Declaration No. 90-11. Individual projects implementing these policies will be subject to environmental assessment at the time of application. ON FILE: A copy of the proposed request is on file in the City Clerk' s office and the Community Development Department, 2000 Main Street, Huntington Beach, California 92648, for inspection by the public after May 18, 1990 . ALL INTERESTED PERSONS are invited to attend said hearing and express opinions or submit evidence for or against the application as outlined above. If there are any further questions please call Scott Hess, Senior Planner, or Ruth Lambert, Assistant Planner, at 536-5271. Connie Brockway Huntington Beach City Clerk (5483d-5) C Zg- -of-, Seal Beach County of Orange Huntington Beach Tomorrow Planning Department EMA-Advance Planning 411 Sixth Street 211 Eighth Street P.O. Box 4048 Huntington Beach, CA 92648 Seal Beach, CA 90740 Santa Ana, CA 92702-4048 City of Fountain Valley City of Westminster Jim Miller, Director Planning Department Community Development Shelter for Homeless 10200 Slater Avenue 8200 Westminster Blvd. 8291 Westminster Blvd. Fountain Valley, CA 92708 Westminster, CA 92683 Suite 215 Westminster, CA 92683 Amigos De Bolsa Chica City of Newport Beach City of Costa Mesa 15545 Computer Lane Advance Planning Dept. Planning Division Huntington Beach, CA 92649 3300 Newport Blvd. P.O. Box 1200 Newport Beach, CA 92659-1768 Costa Mesa, CA 92628-1200 H.8. Chamber of Commerce Council on Aging HB/FV Board of Realtors 2213 Main Street #22 1706 Orange Avenue 8101 Slater Avenue Huntington Beach, CA 92648 Huntington Beach, CA 92648 Huntington Beach, CA 92647 ATTN: Kim Barone ATTN: Judith Severy So. Cal. Assoc. Governments GoldenState Mobilehome Owner's Friends of Hunt. Wetlands 600 S. Commonwealth Ave. League 9122 Christine Drive Suite 100 11021 Magnolia Blvd. Huntington Beach, CA 92646 Los Angeles, CA 90005 Garden Grove, CA 92642 ATTN: Richard Spicer ATTN: Virginia Day E.T.I. Corral 100 Coastal Conservancy Huntington Beach Company Bonnie Wakeham P.O. Box 66494 2110 Main Street 20031 Big Bend Los Angeles, CA 90066 Huntington Beach, CA 92648-2499 Huntington Beach, CA 92646 ATTN: Ruth Galanter ATTN: R. J. Work H.B. Historical Society Building Industry Assoc.-O.C. Richard Harlow c/o Newland House Museum 2001 E. 4th. Street 18652 Florida Street 19820 Beach Blvd. Santa Ana, CA Suite 100 Huntington Beach, CA 92648 Huntington Beach, CA 92646 ATTN: Guy Guzzardo Roger Slates Orange County MHET Ms. Gaynor Creger 18652 Florida, Suite 100 P.O. Box 17666 Huntington By The Sea Huntington Beach, CA 92649 Anaheim, CA 92817-7666 21851 Newland Street Space 61 Huntington Beach, CA 92646 t i I j i f I ,'I u. C it of Huntington Beach l 1989 Housing element Update r I Revised Dx;tflt Housing Element . _ r s �,,.. •�:� �:+r-t. '�' ��:.-� ''vim'-� �� I r I I City of Huntington Beach 1989 Housing Element Update Revised Draft Housing Element �� - CITY OF HUNTINGTON BEACH HOUSING ELEMENT UPV E Revised Draft Housing Element June 1990 Prepared by: Cotton/Qeland/Associates, Inc. 1028 North Lake Avenue, Suite 107 Pasadena, California 91104 555.00 CITY OF HUNTINGTON PEACH HOUSING ELEMENT UPDATE TABLE OF CONTENTS Paqe 1 .0 INTRODUCTION 1 . 1 State Policy and Authorization 1-1 1 . 2 Organization of the Housing Element 1 -2 1 . 3 Relationship of the Housing Element to Other General Plan Elements 1- 3 1 .4 Public Participation 1-5 2 .0 SUMMARY OF HOUSING NEEDS, CONSTRAINTS AND OPPORTUNITIES 2. 1 Summary of Housing Needs 2-1 2.2 Housing Constraints 2-6 2.3 Housing Opportunities 2-11 3.0 HOUSING PLAN 3. 1 Evaluation of Accomplishments Under 1984 Housing Element 3-1 3.2 Goals, Policies, and :PrjD9rar Actions 3-6 3.3 Housing Assistance Plan 3-30 3.4 Regional Housing Needs= Asfsessment 3-32 3.5 Redevelopment Set-Aside Fund 3-33 3.6 Description of Implementing Programs 3=36 APPENDICES A. State Housing Element Requirements B . Technical Data , Report LIST OF TABLES Table pace 1 Vacant Lands Suitable for Residential Development 2-14 2 Residential Recycling Activity 2-15 3 Potential Residential Development Summary 2-21 4 Affordable Housing Developments 3-5 4A Housing Element Program Summary 3-6. 1 5 Rental Subsidy Needs of Lower Income Households 3-30 6, Lower Income Households . to Receive Rental Subsidies 3-30 7 Units to be Assisted for Lower Income Households 3-31 8 1989-1994 Household Needs by Income Group 3-32 LIST OF FIGURES Figure Page 1 Previously Constrained Lands Suitable for 2-12 Residential Development 2 Bolsa Chica Residential Development Plan 2-19 1.0 INTRODUCTION The Housing Element is intended to direct residential development and preservation in a way that coincides with the overall economic and social values of the community. The residential character of a city is largely dependent on the type and quality of i.ts-dwelljq units, their location, and such factors as. maintenance and neighborhood amenities. The Housing Element is an official municipal response to a, growing awareness of the need to -provide housing for all economic segmUits of the community, as well as legal requirements that housing policy ',: made a part of the planning process. As such, the Element establishes policies that will guide City officials in daily deci.s.ion making and sets forth -an action program designed to enable the City to realize its housing goals. 1 . 1 State Policy and Authorization The California State Legislature has identified .the attainment of a decent home and a suitable living environment for every Californian as the State's major housing goal . Recognizing that local planning programs play a significant role in the pursuit of this goal:, and to assure that .local planning effectively implements statewide houusing ipolicy,, the :.Leg.isl.ature has mandated that all cities and counties prepare .a housing 61ement as part of their comprehensive. General Plants. Section 653.02(c) ,of the Government Code sets forth" the specific components to be .cont.aine.d in a community's housing element. Appendix A -suntarize.s these Stat:e requirements and identifies the app;liciihle sect.igns �Tn �theMivitington Beach Housing Element and Technical 4at4 Report where these rQguirements are addressed. Article 10.6 was added to tkte .Government "Grate in I9W rand inAMoretes i nto 1 aw the Hous i ng E1 ement GuideIines p ulgated ,by the lJf.orni.,a Department of Housing and Community 'DeveloWnt (14C4),, 'The 4rrtginal Housing Element Guidelines were adopted :on June ,17, "ISTI, and .revised guidelines were adopted on :Novembetr 17, IM. The Government Code specifies the intent of i;1e Legi-sIature to insure that counties and cities actively participate in attaining the state housing goal , and sets forth specific .companents to be contained -n a housing element. These include the identification ,and analysis of ,existing and. projected housing needs, resources and constraints; a statement of goals, policies, quantified objectives, and scheduled programs for the preservation, improvement and -development of housing; i.denttifi..cati.on of adequate sites for housing; and adequate prov.i.sf.on for the -exi-sting and projected needs of all economic segments of the counity. State law requires Housing Elements `to he updated at least every five years. The City has prepared the following updated -ltousA ng -fl:ement -in compliance with the July 1, 1989 deadline 'for jurtsd'ictions WI-thin ,the SLAG region. 1-1 1 .2 Organization of the Housing Element The Housing Element Guidelines require elements to include two basic components: 1 . An evaluation of the housing problem and an analysis of housing heeds, indicating the capacity of the existing housing supply to provide all economic segments of the community with decent housing. 2. A housing program, consisting of two parts: a. A comprehensive problem solving strategy establishing local housing goals, policies, and priorities aimed at alleviating unmet need and remedying the housing problem; and b. A course of action which includes a specific description of the actions the locality is undertaking and intends to undertake to effectuate these goals, policies, and priorities. The Huntington Beach Housing Element update delineates the City's housing needs and sets forth a program of action in accordance with State law. This first section of the Element defines the intent of the Housing Element, describes its relationship 'to State directives and other general plan elements, and includes a description of the public participation and intergovernmental coordination utilized in its preparation. Section 2.0 of the Housing Element provides an overview of the present and projected housing needs of the City's households as defined by the Housing Element Technical Data Report, which serves as an appendix to the Element. This section also provides an analysis of potential constraints to meeting the City's identified housing needs, and an evaluation of opportunities that will further the development of new housing. Finally, the Housing Plan presented in Section 3.0 sets forth the City's quantified housing goals, policies and programs to address Huntington Beach's identified housing needs. 1.3 Relationship of the Housing Element to Other General Plan Elements The California Government Code requires that General Plans contain an integrated, internally consistent set of policies . When any one element of the general plan is revised, and especially when new policies and priorities are proposed, the other elements must be reviewed to ensure that internal consistency is maintained. This section examines the relationship of the Housing Element and its policies to the other elements of Huntington' Beach's General Plan. Land Use The Housing Element is most affected by development policies contained in the Land Use Element; which establishes the location, type, intensity, and distribution of land uses throughout the city. In designating the total 1-2 acreage and density of residential development, the Land Use Element places an upper limit on the number and types of housing units constructed in the city. The acreage designated for industrial , commercial , and office professional uses creates employment opportunities; the presence of these jobs affects the demand for housing in the city. Ongoing modeling of the fiscal impacts associated with various land use types and proposed developments may warrant 4 reconsideration of the distribution of land uses throughout the city, especially in light of the Jarvis and Gann tax initiatives. Early indicatic:ns reveal that there may be significant policy conflicts between providing a sufficient number and range of housing types and mai°ntaining a balanced local economy and an adequate level of municipal services. The adopted policies and priorities of both the Housing and Land Use Elements must be carefully balanced to maintain internal consistency in the General Plan. Open Space and Conservation Policies contained in the Open Space and Conservation Element call for the preservation and protection of the city's natural environment through the conservation of significant open space areas, acquisition of .land for recreation and parks, and restricted development in hazardous areas and areas utilized for the production of natural resources. These policies affect both the amount of land available for housing -by designating permanent open space areas and the cost of housi.pg. by requiring land dedication and/or development fees for the acquisition -and maintenance of public open space areas. Circulation The Circulation Element calls for t-he development of a system. of arterial highways that safely and efficiently a.ridmnod'ates traffic generated by adopted land uses. At the same time, `ibe' el.ement seeks to minimize the adverse environmental and aesthetic effects of the road' neiwork and traffic on sensitive land uses such as' residential areas. By providing for a convenient public transportation system and a network of bicycle, pedestrian, and equestrian trails, the Circulation Element attempts to create a satisfying living environment for residents of Huntington Beach. While the cost of producing new housing is� affected by the City's street design standards and arterial dedications_ requirements, these standards are not excessive and do not unduly constrain affordable housing. Noise The Noise Element contains policies aimed at reducing the impacts of urban noise on residents, workers, and students' in the city. Sources of noise include freeway and arterial traffic, construction and oil -related machinery, and aircraft. Residential development in areas with high noise impacts is discouraged unless adequate noise attenuation features are included. Special construction methods or increased landscaping to reduce noise impacts create a more satisfying living environment but also add to the cost of housing. 1-3 a + Seismic Safety The Seismic Safety Element identifies geologic and flood hazards in the city. Although development within identified hazard areas''is not prohibited altogether, special construction techniques are required to ensure that structures will remain safe in the event of a disaster. Unstable soil conditions in certain areas of the city require additional grading, fill , and compaction before development is allowed. In addition to the extensive fault system that underlies ;-.ntington Beach, the majority of the city is located within the floodplain of the Santa Ana River. The National Flood Insurance Act of 1968 r:iquires affected localities to adopt a program of floodplain management to prevent loss of life and property in the event of a major flood. Provisions of this program range from prohibiting development in severe hazard areas and requiring modification of structures or special construction practices to securing bonds for the construction, improvement, and maintenance of flood control and drainage facilities. All of these actions add to the cost of housing in the city; however, they are required if the City is to provide an acceptable level of public safety. Scenic Highways The Scenic Highways Element establishes local scenic routes and landscape corridors along several arterial highways in the city. The intent of these designations is to establish and maintain aesthetic visual resources along major transportation routes, implemented through landscaping programs, grading, development, and signing controls, utility undergrounding, and architectural review. While the scenic highways program enhances the living environment, the costs to the City and private developers to implement the program are eventually reflected in increased housing costs. Community Facilities The Community Facilities Element provides direction for the provision of community facilities needed to serve existing and proposed development in the City in a coordinated and cost efficient manner. The element contains pertinent data regarding the status of the City's major capital facilities. Community facilities, particularly those related to health and safety, are a prerequisite to any new development. The availability and condition of existing community facilities may impact the provision of housing, especially affordable housing, since necessary infrastructure improvements will increase housing costs. By directing the location and timing of new -capital facilities, the City can affect the availability of sites for new housing. By investing public money in existing neighborhoods, the City may help stabilize and revitalize them, thus preserving and upgrading the available housing stock. I-4 Coastal The Coastal Element contains the land use designations and policies adopted by the City to implement the California Coastal Act of 1976. The Coastal Element, which is the Land Use Plan portion of the City'.s Local Coastal program, has been certified in geographic part by the California Coastal Commission. Although the provision of affordable housing is no longer required under the Coastal Act, the Lind Use Plan itself may affect the cost and desirability of housing within the entire City. Low and moderate income housing within the coastal zo;,e is currently addressed by Section 65590 of the Government Code. The Technical Data Report to the Housing Element discusses the housing stock within the Huntington Beach Coastal Zone and recent housing developments under Section 65590. 1.4 Public participation Section 65583(c) (5) of the Government Code states that "The local govenment shall make a diligent effort to achieve public participation of all economic segments of the community in the. development of the housing element, and the program shall describe this effort. " Upon completion of a Draft Housing Element, the -City advertised its availability for public review. The Draft Housing Element and Technical Data Report were made available to the public at City ball free .of charge. The City also circulated draft elements to housing interest groups for comment. The City Council appointed a Housing Committee in October 1988 for .the purpose of working with city staff to develop an overall ,program •strategy for expenditure of the City's 20% housing .-set—aside fund, :aswell as reviewing other housing issues. The Houstnig Committee coRsisted .of -three City Council/Redevelopment Agency members, and ,.ftur .City residents appointed by the remaining four Council members. Citizen .representatives included individuals experienced in both non-profit -and for-profit housing development, and with CDBG programs. Based on the Committee's knowledge of housing issues facing the community, they also acted as the reviewing body for the Housing Element and Technical Data Report. City staff met with the Committee on several occasions to receive their input on the major housing issues facing the community, and to refine Housing Element policies and programs to address identified housing needs. Prior to public hearings, public participation was provided for in a special Housing Element workshop conducted by City staff. . The purpose of the workshop was to review the findings of the Element and Technical Data Report, and to receive community input on proposed policies .and programs. The workshop was advertised both in the local newspaper, as well as through direct mailings to interested community members. 1-5 Public participation is also provided in the form of public hearings. Following the preparation of the Draft Housing Element and its review by the Housing Committee and the public, the Planning Commission conducts public hearings on the Element. Subsequent to Planning Commission action and recommendations to City Council , further public hearings will be held at the City Council level . All public hearings are advertised in the newspaper, with notices mailed to interested citizens and community groups. Once the public hearings and related reviews are completed, the City Council may formally adopt the Element. 1-6 2.0 SUMMARY OF HOUSING NEEDS, CONSTRAINTS ARD O'PPORTUNITIES As part of this Housing Element update, a separate Technical Data Report was prepared which documents the population, socio-economic', and housing characteristics of the City of Huntington Beach. This background report helped to define the City' s current and projected housing needs and to provide direction in the development of goals, policies and programs to address these needs in the Housing Element. This section of the Housing Element summarizes "-.he findings of housing need from the Technical Data Report. In addition, certain constraints which may discourage the construction of new-housing are evaluated, as well as opportunities that will -further the development housing in the community. 2. 1 Summary of Housing Needs A number of factors will influence the degree of demand or' "need" for new housing in Huntington Beach in coming years. The four major "needs" categories considered in this Element include: Housing needs resulting from increased population growth, both in the City and the surrounding region; - Housing needs resulting from the deteriorati-en_,or .demolition of existing units; - Housing needs that result when households.:are ,paying more .than they can afford for housing; - Housing needs resulting from ,the presence of "special • steeds cHroups" such as the elderly, large families, -female .headed-households, households with a handicapped person, and :the.homeless. 2. 1 .1 Population Growth The 1988 population of the City of Huntington Beach..was nearly 188,000 persons, making it the third largest city in Orange County -behind only Anaheim and Santa Ana. During the 1980's, Huntington Beach experienced an average annual growth rate of 1 .25%, somewhat below that-experienced County-wide. The City's slowing population growth rate is indicative of the fact that Huntington Beach is an older, more ,built :out community-with limited vacant land available for residential development. Growth projections through the year .2010 indicate, a .further slowing in the City' s population growth to an average annual rate of .63%. As discussed under Housing Opportunities, much of the.City`s -future .grawth :will . be accommodated through the recylcing of existing residentialiand non-residential land uses, and through• the removal of-development constraints on vacant parcels related to oil production, floodplain regulations and fragmented ownerships. 2-1 2. 1.2 Substandard Units The accepted standard for housing rehabilitation needs is after 30 years. In 1988, only seven percent of Huntington Beach's housing stock was over 30 years old. However, in ten years, nearly half of the City's housing will be over 30 years of age, indicating the need for continued housing maintenance to prevent widespread housing deterioration. Existing substandard housing in Huntington Beach is primarily concentrated in the City' s older residential areas. The City nas targeted seven neighborhoods characterized by high levels of housing deterioration for rehabilitation assistance. Through its Community and Neighborhood Erhancement Program, the City offers low interest rehabilitation loans as an incentive for unit upgrading, and in addition provides needed public improvements to these neighborhoods. lire Housing Element sets forth policies and programs to encourage the maintenance of the City' s housing stock. These policies include: Encourage the maintenance of the existing housing stock to prevent unit deterioration. Encourage the rehabilitation of substandard and deteriorating housing. Promote the removal and replacement of substandard units which cannot be rehabilitated. 2. 1 .3 Affordability State and Federal standards for housing overpayment are based on an income-to-housing cost ratio of thirty percent and above. Households paying greater than this amount will have less income left over for other- necessities, such as food, clothing and health care. It is recognized, however, that upper income households are generally capable of paying a larder proportion of their income for housing, and therefore estimates of housing overpayment generally focus on lower income groups. The Regional Housing Needs Assessment (RHNA) prepared by SCAG identifies housing overpayment for the City's 'lower income households. (a) According to the RHNA, an estimated 10,565 (or 45 percent) of Huntington Beach' s lower income households were paying more than 30 percent of their income on rent or mortgage payments as of January 1, 1988. Of these overpayer•s, 5,961 are classified as Very Low Income, and 4,604 are Low Income. (a) Lower income households are defined as households whose total gross income is less than 80 percent of the County median. "Lower income" encompasses both Very Low and Low Income groups. 2-2 The distinction between renter and owner hou3 °rg overpayment is important because, while homeowners may overextend themselves financially to afford the option of home purchase, the owner always maintains the option of selling the home. Renters, on the other hand, are limited to the rental market and are generally required to pay the rent established in that market. According to the RHNA, of the total 10,565 lower income households identified as overpayers in Huntington Beach, 8,638 were renter households and only 1,927 were owner households. This discrepancy is largely reflective of the tendency of renter Louseholds to have lower incomes than owner households. 2.1 .4 Special Needs Groups Certain segments of the population may have a more difficult time finding decent, affordable housing due to special circumstances. In Huntington Beach, these "special needs" households include the elderly, handicapped persons, large families, farmworker households, female headed households, and the homeless. Elderly: the special needs of many elderly households result from their lower, fixed incomes, physical disabilities, and dependence needs. An estimated 14,266 elderly (65 years and over) resided in Huntington Beach in 1988, representing 7.6 percent of the total population. The proportion of elderly can be expected to increase as those persons between the age of 35 and 64 grow older. Many elderly households in the City are of lower income, and of these the City's 1988' Housing Assistance Plan (HAP) estimates 1 ,226 are in need of rental assistance. - EscalcAting housing costs, particularly in the rental market, severely impact housing affordability for the elderly, who are usually on fixed incomes. The housing needs of the elderly can be addressed through the provision of smaller units, second units on lots with existing homes, shared living arrangements, congregate housing, and housing assistance- programs. Handicapped: Physical handicaps can hinder access to housing units of traditional design as well as limit the ability- to earn adequate income. Huntington Beach's Housing Assistance Plan identifies 1 ,444 low and moderate income households that have at least one handicapped person, representing approximately .8 percent of total households within the City in 1988. The City's handicapped can be classified according to the following household groups: City of Huntington_ Beach Har i�q".ped Households Elderly 86 Single, 425 non-elderly Small Family 749 Large Family 184 Total Households 1,444 Source: City of Huntington Beach, Housing Assistance Plan, 1988-1991 2-3 Housing opportunities for the handicapped can be maximized through housing assistance programs and providing design features such as widened doorways, ramps, lowered countertops, single-level units, and ground floor units. The Housing Element sets forth policies to implement State standards for the provision of handicapped accessible units in new development and, in 'addition, to encourage housing which is provided for the handicapped to be located in close proximity to public transportation and services. l_ar,ge_ Famil_ies/U_ nit Overcrowding: Large familieb are identified as a group with special housing needs based on the limited availability of adequately sized, affordable housing units. Large families are often of lower income, frequently resulting in the overcrowding of smaller dwelling units and in turn accelerating unit deterioration. Approximately 9.8 percent of the City's households in 1988 had five or more members, translating to 6,878 households. The demand for larger units in the City can be expected to increase based on the City's growing ethnic population and the desire/need of many of thee ethnic groups to cohabitate with extended families. The housing needs of large households can be addressed through the provision of affordably-priced larger housing units and through rental assistance programs. The City has coupled rental assistance with its rental rehab program to offer larger units to overcrowded households, and in addition offers single-family rehabilitation loans for room additions to alleviate overcrowding. Female-Headed Households: Female-headed households tend to have low incomes, thus limiting housing availability for this group. In 1988, an estimated 9 percent, or 6,316, households were headed by a woman in Huntington Beach. The City's Housing Assistance Plan estimates that 4,268 female-headed households (67%) in Huntington Beach have dependent children under 18 years of age. Thus, providing housing opportunities for this group relates both to affordability and services related to the care of children. Farmworkers: The special housing needs of many farmworkers stem from their low wages and the insecure nature of their employment. Those persons working in the farming industry have been counted by the 1980 U.S. Census and are also included in the City's 1984 Housing Element. According to the Census, approximately one percent of the total labor force in Huntington Beach was employed in farming, forestry, or fishing. According to the City's Housing Element, there were 878 persons employed as farmers residing in the City in 1984, or .6 percent of those persons aged 18 and over. Housing opportunities for farmworkers can be enhanced by expanding the City's affordable housing stock. 11onreless: lhr•oughout the country, homelessness has become an increasing problem. I'act.or's contributing to the rise in homeless include the general lack of huusing affordable to low and moderate income persons, increases in the number of persons whose incomes fall below the poverty level , reductions in public subsidy to the poor, and the de-institutionalization of the mentally ill . Based on estimates by the Orange County Homeless Issues Task Force, the County's homeless population consists of 2-4 approximately 8,000 to 10,000 individuals, some of whom are located in Huntington Beach. As a beach community, the City attracts numerous individuals who congregate along the beach, under the pier, by the Santa Ana River bed, and in Central Park. The Episcopal Service Alliance (ESA) , an ecumenical organization in Huntington Beach which provides social services for homeless, reported for February 1989 the number and types of homeless which sought their assistance. As the figures below reveal , the majority of homeless seeking assistance are LO—iples with children ( 195) and lone females with children (152) . These tc=:als, however, represent only a portion of the actual number of homeless if. the City. ESA indicates that as referrals of the service continue to spread, the total number of homeless reported continues to increase every month. City of Huntington Beach Homeless Seeking Assistance Total Type Individuals Homeless with no shelter 17 Homeless in Motels 21 Homeless and Mentally Ill 3 Homeless Families 24 Couples 12 Couples with children 195 Lone Females 16 Lone Females with children 152 Lone Males 37 Lone Males with children 4 Total 481 Source: Episcopal Service Alliance, February 1989 [he City currently operates a program to provide housing assistance, along with other social services, to single parents who are currently homeless or at risk of becoming homeless. In addition, the Housing Element calls for the City to provide financial assistance to groups which provide services to the area's homeless population including a new youth shelter set to open in the City. As part of the current update to the City's Zoning Ordinance, appropriate zones will be identified for the development or rehabilitation of transitional housing and emergency shelters for the homeless. 2-5 a 2.2 Housing Constraints Actual or potential constraints on the provision and cost of housing affect the development of new housing and the maintenance- of existing units for all income levels. Market, governmental , infrastructural , and environmental constraints to housing development in Huntington Beach are discussed below. 2.2. 1 Market Constraints The high cost of renting or buying adequate housing is the primary ongoing constraint to providing adequate housing in the City of Huntington Beach. High construction costs, labor costs, land costs and market financing constraints are all contributing to increases in the availability of affordable housing. Construction Costs: The single largest cost associated with building a new house is the cost of building materials, comprising between 40 to 50 percent of the sales price of a home. Overall construction costs rose over 30% percent between 1980 and 1988, with the rising costs of energy a significant contributor. Construction costs for wood frame, single- family construction of average to good quality range from 540 to $55 per square foot, custom homes and units with extra amenities running somewhat higher. Costs for wood frame, multi-family construction average around $42 per square foot, exclusive of parking. A reduction in amenities and quality of building materials (above a minimum acceptability for health, safety, and adequate performance) could result in lower sales prices. Additionally, pre-fabricated, factory built housing provides for lower priced housing by reducing construction and labor costs . An additional factor related to construction costs is the number of units built at the same time. As the number of units developed increases, construction costs over the entire development are generally reduced based on economies of scale. This reduction in costs is of particular benefit when density bonuses are utilized for the provision of affordable housing. Redevelopment set-aside monies have been allocated to a "private market leveraging" program in which the City writes down development costs in exchange for affordable units. Land: Land costs include the cost of raw land, site improvements, and all costs associated with obtaining government approvals . The limited supply of developable vacant land in Huntington Beach has accounted for a steady increase in raw land costs. Residential land in Huntington Beach cost an average of $6 to $8 per square foot in 1984, whereas land costs in 1989 averaged between $10 and $13 per square foot on parcels with single-family Toning and $20 and $25 per square foot on parcels zoned for multi -family development. It is estimated that these costs contribute 20 to 25 percent to the final sales price of a new home. Left alone, the rapidly escalating market price of land will tend to encourage mainly higher priced development. Higher density zoning could reduce the cost per unit 2-6 of land„ but land zoned for higher de.nsities commands a higher market price. For this reason, 'density bonuses rather than zoning changes may be the preferred vehicle for reducing land costs. The Housing Element identifies the use of land assemblage .and write-down. as an incentive for the provision of affordable units. Labor Costs: Labor is the third most expensive component in building a house, constituting an estimated 17% of the CO. t of building a single,-family dwelling. The cost of union labor in the constru,-tion trades has increased steadily since April 1974. The cost of non-union. labor, however, has not experienced such significant increases. Because of increased construction activity, the demand for skilled labor has increased so dr..astically that an increasing number of non-union employees are being hired in addition to unionized employees, thereby lessening labor costs. Financing: While interest rates have fallen more than 10 percent from their near 20 percent high in the early 1980s, they still have a substantial impact on housing costs which is felt by renters, purchasers and developers . It should be noted that some mortgage financing is variable rate, which offers an initial lower interest rate than fixed financing. The ability of lending institutions to raise rates to adjust for inflation may cause many existing households to overextend themselves financially, as well as returning to a situation where high financing costs substantially constrain the housing market. An additional obstacle for the first-time home buyer continues to be the 1072% downpayment required by lending institutions. The median sales price of a single-family home in Hunt.a.ngton Beach (1988) was $222,000. A $199,800 mortgage (10% dawn payment) -amp-rti;zed. over. 30 years at an interest rate of 10.5% woul& result in monthly .house payments of $1 ,827. This level of payment eliminates Hunt ington:,Beach's very low, low and moderate income households from the for-sale. hous- .ng market. Condominiums do, however, offer an alternative homeownership opportunity for many of the City's moderate income households . Interest rates are determined by national policies and economic conditions , and there is little that local governments can do to affect these rates. Jurisdictions can, however, offer interest rate write-downs to extend home purchase opportunities to lower income households. Through its mortgage revenue programs, the City provides interest rate write-downs to benefit Low and Moderate Income households . A special multi -family unit interest rate write-down program is being developed by the City to conserve existing Federally-subsidized housing projects. Finally, the City is developing a shared equity program for. downpayment. assistance to first-time homebuyers and is exploring the implementation . of, a mortgage credit certificate program. Profit, Marketing and Overhead: Developer profits generally comprise 10- 15% of the selling price of single-family homes and slightly lower for condominiums . However, in communities like Huntington Beach where the market demand for housing is high in comparison to the available housing supply, and home purchasers often desire more amenities, developers are ablo Lo command higher prices and often realize greater margins of profit . Rising marketing and overhead costs have contributed to the rising costs of housing. Inflation has spurred much of the increase in marketing and overhead. Intense competition among developers has necessitated more advertising, more glamorous model homes and more expensive marketing strategies to attract buyers. 2.2.2 Governmental Constraints Housing affordability is affected by factors both the private and public sectors. Actions by the City can have an impact on the price and availability of housing in the City. Land use coi:trols,- site improvement requirements, building codes, fees and other local programs intended to improve the overall quality of housing may serve as a constraint to housing development. and Use Controls: As indicated in the Section on Housing Opportunities, an estimated 4,997 new residential dwelling units could be developed on unconstrained vacant lands in Huntington Beach under the General Plan. Additional residential development in the City will , however, be accommodated through several other means, including development on under- utilized residential parcels, on non-residential land, and on surplus school sites. Considering the potential from all these sources, a total of 7,527 additional gwelling units could be accommodated in Huntington Beach. SCAG has estimated a future housing need of 6,228 new units in the City through the year 1994. The Plan thus provides for a residential development capacity which is more than adequate to serve projected future housing demand. The Land Use Plan cannot, therefore, be interpreted as a constraint to the provision of affordable housing, particularly since 3,676 units are designated for higher density housing (Medium High and High Density Residential ) and can more readily be priced to meet the needs of lower income households. Fees and Improvements: Various fees and assessments are charged by the City to cover the costs of processing permits and providing services and facilities, such as utilities, schools and infrastructure. Almost all of these fees are assessed through a pro rata share system, based on the magnitude of the projectes impact or on the extent of the benefit which will be derived. However, these fees contribute to the cost of housing and may constrain the development of lower priced units. The Housing Element calls for the City to monitor all regulations, ordinances, departmental processing procedures, and residential fees related to rehabilitation and/or construction to assess their impact on housing costs. The Ci.ty's Senior Citizen Residential Suffix Zone establishes reduced development standards (e.g. , parking requirements) to lessen the cost of developing housing for the elderly. Building Codes and Enforcement: The City of Huntington Beach has adopted the State Uniform Building, Housing, Plumbing, Mechanical and Electrical Codes. These codes are considered to be the minimum necessary to protect the public health, safety and welfare. The local enforcement of these codes does not add significantly to the cost of housing. 2-8 Local Processing and Permit Procedures: The evaluation and review process required by City procedures. contributes to tht cost of housing irn -that holding costs incurred by•developers are ultimm'ate4y manifested i mmk. the unit's selling price. One potential way to reduce housing costs- is to reduce the time for. processing permits. As, reviewa times are already streamlined in the City, cost savings from: "fast track" processing would be minimal . Nonetheless, as land holding costs can run over $1,000 per unit for a 9 to 12 month period, the. City is consid,erirag, developing an expedited processing procedure for residemsti,al projects with an affordable component. 2.2.3 Environmental and In-ff`astructure• Comttaints Portions of Huntington Beach are exposed to, a variety of environmental hazards and resources which may constrain the development of Tower priced units . In addition, deficiencies exist related to the provision of infrastructure to service new- residential development. Fl oodpl�ai n: Situated on a Taw-lying_ plain and bounded,by. the, Santa Ana River, Huntington -Beach faces significant fTood hazard. Over half the City' s acreage, and approximately 70-801: of its r'esidentialRly designated acreage, falls within the FTood Hazard Zone as diefimned by•the Flood Emergency Management Agency (FEMA.Y. FERA. regulitions. require that all new residential development be giraded up above the 100-year, flood-'elevation which ranges from approximately one to 11 feet in the City, These restrictions on development in the-floodplain results in a=reduction in the number of units that can be, built, increases the costs of construction, andslows dow dev<elmpmnmV." of 1 Resources: Huntington Bcach-is histortta.ily an oil town- The, numerous oil facilities currently opemratirg ira the City- serve^to.,reduce the amount' of land currently-;availaMeJw deve4apment. While-residential projects can sometimes be d#veloW around-:producing wellt, -.Often development- must be postponed until oAl 'proddctlen hots and facilities are abandoned (20 to 3& years), T&e� preseece:of"oi►l ftsititfes, thous reduces the amount of acreage awailablei for developmennt' im. the .near future and/or increases the cost -of development. The City' s Redevelopment Agency is,,curremgtly.,wor.kimg :.wi+th °a private oil company in developing an oil conso)idatton, site in dewntoww- HUnti"tM Beach , By consol, idat i mig the C it,y' s oil well s and storage ta.s'aks onto a sindi. site, the Cit.y' s "oil lots" will be -opened up, for devellopmeert. Approximately 90 percent of the City"s-oil lets -h-ave been, purchased by the of 1 company, with the goals of completing. the consa1fdMtimmat^site vAth-in a two ,year period. In addition to the oil conselimd'ation"siate, the,,City is working- r*tlr, property owners to -impl mnL'measures to wit igate constraints to development on sites vpith remaining oil feeiTittes. Tkese measures include buffering/.screening extstinmg, oil islands, abandonrAwt' af oil wells , and creation of Specific Plans. 2-9 HggArdgus jgAU: Because of the long history 9f, oi.l- recovery operations in Huntington Beach, some vacant resident-ial propprtias :pgnta.in hazardous wastes related to abandoned- oil walls,_oJl,pipel-inesr,:pr,.pI tential gas risk. These contaminated sites will require Glean, up prier -to(.their development, thus adding to the costs pf deyelqpirig .on theAe s i�tes. Public Services and Facilities: As a highly urbanized community, most areas of the City are already served by sewer -lines, water lines, streets, storm drains, telephone, electrical and gas i ;r.es, However, a major area of vacant land east of the Bolsa Chica wetlands area is designated for Residential Estate has remained undeveloped due to the lack of water and sewer lines and storm drains in the area. To fac tlitate development in this area, the recently completed Ellis Golden West Specific Plan provides for necessary infrastructure improvements to be installed over the next few years . This Specific Plan will also help to alleviate another constraint to development in this area, fragmented land ownership. 2-10 I 2.3 Housing Opportunities This section evaluates the potential additional residentialAe'velopment ' : wfii:ch could occur .under :the..City' s General Plan and zoning 'on' va:cant and . :`underuti l i zed land. 2.3': 1 Vacant Sites Vacant land planned for residential development is relatively scarce in Huntington Beach. Approximately 725 acres, , or percent, of the City' s total 11 ,918 residential acres are currently vacaIa Under existing zoning and general plan designations, these residential acres could support a maximum buildout of 7,587 additional housing units. However, as discussed in the previous section on environmentally constrained lands, much of the City' s vacant residential land has been subject to development constraints related to oil production and fragmented ownerships . The City is actively working with property owners to remove these constraints by creating an oil consol-idation site, developing specific standards to ensure compatibility between oil islands and residential uses and..4h rough implementation of Specific Plans . Through the City' s activiti"es, the following four areas which had previously been constrained due to oil production activities will now be available for residential development. These areas are .illustrated in Figure 1 , and their dwelling unit-.'capacity described below: Area #1 : This parcel is approximately 19.69 acres in size and is designated for High bensity -Residential , permitting up to 35 dwelling units per acre. -While the property has been historically utilized for oil production, the :few oil wells remaining on the site are in the process of _being removed. The property owner has submitted development plans to the City for 331 attached townhome units on the site. Construction of these. units is anticipated to begin in Spring 1990. Area #2: The Redevelopment Agency is currently working with a private oil company in developing an oil consolidation site in downtown Huntington Beach. Existing oil.. facilities located on the 20.72-acre Area #2 site are to be relocated- on the oil consolidation site. Existing High Density Residential zoning on the site would permit the development of apprQximately .725 multi -family dwelling units on the property. Area #3: Ih is area consists of approximately 47 .62 acres designated as Residential Est ate -Density (2 du/acre) . The site is located in the Iiolly--Seacliff- Master Plan- :area adjacent the proposed linear park. While the area had previously been . identified as constrained by oil production, the Master Plan provides for mitigation of oil constraints, through abandoning some wells and creating "oil islands" with remaining on-site oil facilities. By mitigating- restrictions on development, approximately 95 s`ingle-family dwelling units will' be able to be accommodated on this site. 2-11 r eld—la,k ( A.PEA 4 r e % — AREA 3 11-bouo� �Lr�' PROPERTY � r `fIJJJ ri ♦• BOLSA CHICA [do C" '. Gee ati g ♦ Co ny Ctub '/ ^�� PnC*YC♦� y..... >REA 2 .IOjw r n ry 0 3636 rCh� K North stele in feet FIGURIF I P-�! JOUSI Y CONSFRAUa.0 EAN:)S SUIIAULE FOR RESIDUNTIAL DEVELOPNACNT Area #4: Similar to Area #3, this 38.48 acre: site is located in the Holly-Seacliff Master Plan, which provides for mitigation of existing oil constraints. The Master Plan designates this site for an overall average density of seven dwelling units per acre, providing for a total of 269 dwelling units. Through the City's efforts, 126 acres of land which had previously been constrained by oil production activities will opened up to development. This residential acreage will provide for an in •reasa in dwelling units, ranging from low density estate housing, to high density apartments and condominiums. Table 1 provides a breakdown of the number and type of additional residential dwelling units which could be constructed in Huntington Beach cinder the General Plan. Of the City's total 725 vacant residential acres, 478.8 acres can be considered unconstrained and available for development over the five-year period of the Housing Element. This acreage will support a maximum buildout of 4,997 dwelling units, ranging in density from 2 to 35 units per acre. Nearly half (45 percent) of the potential dwelling units are the Medium-High and High Density residential land use categories, providing opportunities for lower cost housing development. Approximately one-quarter of these potential units are designated for Medium Density Residential , indicating a significant proportion of future residential growth will be in the form of duplexes and townhomes and lower density apartments and condominiums. , Single-family homes will comprise approximately one-quarter of the City's future residential growth. A rec:ent,Iy-adopted Specific Plan for the Ellis West area will serve as a vehicle for consolidating land ownerships, providing for approximately 600 residential estate dwelling units. 2.3.2 Underdeveloped Sites In addition to development on vacant lands, there is the potential for new residential development on sites which are currently developed at densities lower than those permitted under the General Plan and zoning. In the Townlot, Oldtown and Downtown areas, many of the areas designated for densities of 15 units/acre are currently developed with single-family and lower density multi -family uses. Recycling of these lower density rises occurs when the intensity of use allowed in the zone more than offsets the costs of acquiring the improved site, demolishing the existing units, and constructing new higher density units. For the past several years, substantial recycling activity has been occurring in the Townlot, Oldtown and Downtown areas indicating that permitted densities are high enough to warrant recycling. Interestingly, while City zoning permits densities up to 15 units per acre in these areas, the market demand for single family homes has resulted in the majority of replacement units developed as single-family detached units. Single-family residential uses ill the lownlot, Downtown and Oldtown areas are predominately developed on 50' x 115' and 25' x 115, sized lots. The recycling trend in these areas 2-13 TABLE I CITY 'OF HUNTINGTON -BEACH VACANT LANDS SUhTABLE. FOR 'iRES;IbE*T-IAL DEVELOPMENT: 1989 Total Unconstrained 1 0 Vacant Potenti"al . ,Vacant Potential Total Land Use Catagory_ Acreage DUs _ Acreage DUs DUs Residential Estate_ 222.0 724 182.6 .. 605 .12% (2-4 du/ga) . Residential Low Density 98.39 688 86.41 605 12% (7 du/ga) - Residential Medium Dens. 159.73 2,407� 77.91 1 ,,169 24% (15 du/ga) Residential Medium-High 17.55 4.39 17.55 4.39 9% (25 du/ga) Residential High Density •_62.05 2, 172 62_05 1 ,813 36% (35 du/ga) Planned Community 165.28 .1 ,.157 5.2':28 .366 70/ (7 du/ga) TOTAL 7.2.5.00 7,5-87 478.'8 A,997 100% Source City of Huntington Beach _Community :Develo.pment Department, January: '1989. 2-14 , has been to demolish the existing single-fam 1 %, structure, and replace the unit with either two, or three single-famil• units. Table 2 illustrates the.-1ev'el of recent rgryc,lAnq. activity, - wi .43 single-family units demol'i shed in theese areas' i b ' 1966, and .26 1.e the first, s i x months of 1989. In order to estimate the net increase in residential development attributed to recycling over the five year period of the dousing Element, recycling activity over the7past 18 months 'c::,n be applied to the 1989-1994 period. Replacement bnits can be conserVativtiy estimated at a ratio of two-to-one, although it is likely many single ui;is will be replaced at a three-to-one ratio. Based :on, these4ssymptions, ;t is estimated that the City will experience an annual recycling 0. 47 existing units, to be replaced with a total of 94 new Units. Ap�Tying this annual recycling rate to the five year period of the Housing Element translates to an estimated net increase in 235 single family units which can reasonably be expected to develop during the 7/89 � 6/94 period. It should be mentioned, however, that many of the older residences in these areas are identified as historically significant- an a ,local survey, and their removal would need to be addressed under CCUA. TABLE 2 CITY OF HUNT I NGTON BEACH RESIDENTIAL RECYCLING ACTIVITY (OLDTOWN, TOWNLOT, AND 0OWNTOWN AREAS) Sinale 'Family Units Recycled t9jigher Densities 1988 Jan-June 1989 Oldtown 8 8 Townlot 32 17 Downtown 3 1 Total 43 26 Source: City of Huntington Beach 'r Community Development Department 2-15 2.3.3 Second Units Intensification of develbpment in existing residential areas could also occur through the addition of "second units" on single-family lots. Second units, or granny flats as they are commonly known, are dwelling units constructed on the same parcel on which the primary single-family unit is located, providing independent living quarters which the homeowner may rent out or provide for a family member c­ other persons(s) . Second units provide a cost effective means of serving additional development through the use of existing infrastructure, and provide affordable housing for low and moderate income small households. Second units have the additional benefit of allowing many older persons to remain in their homes by providing additional income and security. The City has adopted an ordinance to facilitate and regulate the development of second units. While the ordinance does require a Conditional Use Permit for development of second units, reasonable parking and other requirements have been established so as not to discourage their development . Planning Department records indicate approximately 24 applications for second units have been submitted to the City since 1984, averaging about five applications per year. Using this data to estimate the number of future second unit applications suggests that approximately 25 new applications could be expected over the five year period of the Dousing Element . 2.3.4 Redevelopment Areas Five redevelopment project areas have been established in Huntington Beach: Huntington Center, Oakview, Talbert-Beach, Yorktown-Lake, and Main-Pier. Activities involving residential use include affordable senior housing, rehabilitation of existing units, residential/commercial mixed-use, and market-rate single family and multi-family development. Within the five year period of the Housing Element, the City is commited to working with the development community to achieve an additional 900+ units in the Main Pier redevelopment project area. These units will be developed on property contained within the following three projects: The Waterfront : Pursuant to the approved Development Agreement for The Waterfront project, a total of 894 high density residential units (35 du/acre) may be constructed north of Walnut Avenue between Beach Boulevard and the northerly property boundary. Approximately half of the units (448) are to be constructed in the first phase, scheduled for completion in 1992, with an additional one-quarter of the units (2.23) to be constructed in 1994 as Phase 2, thereby totaling 671 units to be developed within the five year time frame of the Housing Element. !?i�r Color: This high density condominium project (32 units/acre) located at. Pacific Coast Highway and Second Street is scheduled for completion in July 1990. It will consist of 130 one- and two-bedroom condominiums. 2-16 Main Pier Phase II : This mixed-use project located at Pacific Coast Highway and Sixth Street is currently in the ,planning stages. At this time, 103 mediu' high density units (25 units/acre) are proposed, with a scheduled completion date of June 1991 . 2.3:5 Non-Residential Land In addition to land which is currently desig�lated for residential development, the City is in the process of re&signating a non-residential parcel to accommodate residential land uses. Ci*.v Council and Coastal Commission have ammended the General Plan to redesignate the 40-acre Ascon property from Public, Quasi -Public, Institutional to Residential Medium Density. (The site' s general location is identified on Figure 1) . The conceptual plan approved for this property provides for a total of 600 dwelling units at an average density of 15 du/acre. The Ascon site has historically been .utilized as a landfill , and will require site clean-up to remove contaminated soil . The applicant is in the 'process of preparing a remediation plan for soil clean-up, with site clean-up estimated to be complete within the next two years. Residential development on the site will .immediately follow site clean-up, and may be expected .to be completed by the end of: 1992. 2.3.6. Surplus Land. Two former school sites are presently either under construction or in the entitlement stage for residential development in Huntington Beach. Cr.estmore Estates is a 52=unit low-;density single-family,..project which is now under construction. Heritage Village is a mixed d.evul.opment project which is still in the entitlement. stage. It is- a 15.2 acre, 520 unit residential/commerci'al project which is proposed at a density of 34: units per acre. The -zoning will, be a ,Spec-ific Plan. In addition to these school sites,- four other residentially-zoned school sites are being proposed for resi-denti;al development by the school districts. Huntington Beach Elementary District .has proposed 9.75 acres for residential on its L.ebard School s-ite, , and Fountain Valley School District has adverti.sed for bids on its 9. 10 acre Bushard School -site. ! These two sites are both zoned R-1%7du/acre, providing for the development of 132 dwelling units . Two other surplus school sites, Golden. West College (6.81 acres) and Wintersburg High School (14 acres) , have been advertised forbids by the school -districts. These sites .are zoned single-family residential and residential -agriculture respectively,. and could accommodate a total of 62 dwel'ling units. However, development under this twenty year old base zoning would be incompatible given the location of these sites .along .major arterials and surrounding higher densities . These sites will likely be rezoned to accommodate higher density residential development consistent with their setting. 2-17 2.3.7 Bolsa Chica ,The:..Bolsa Chica area is another very significant housing opportunity for the City. The City has initiated annexation procedures for- �the 1 ,_635 acre vacant area known as the Bolsa Chica. While nearly two-thirds of the BolS.a Chica is comprised of a State Ecological Reserve and wetland, the remaining 400-plus acres located immediately adjacent exiting residential neighborhoods., are planned for residential development. The. Bol.sa Chica is located within the City' s sphere of influen.;a and is surrounded on all three: sides by the City of Huntington Beach (ref;r 'to Figure 1) . At the meeting. of .October 2, 1989, the City Council' selecL' :d an outside :law firm _ to assist the City .in preparation of a development/pre-annexation agreeinent for the Bolsa Chica area. In addition, a memorandum cf understanding on the. Bolsa Chica Environmental Impact Statement (EIS) was approved by Council at their meeting 'Of' October 16, 1989. Property owners. in the Bolsa Chica area are limited to Signal Landmark Inc. , State Lands Commission,. and the Metropolitan Water District; all have been supportive of annexation to the City. The anticipated time frame for annexation includes completion of the Final EIS by Fall 1990, with annexation to occur- in late 1990 or early 1991 . Development is expected to occur within 32 years and 'Will include a minimum of 3800 and a maximum of 5700 residential units. A coalition representing five interest groups (Orange County, State lands, property owner Signal Landmark, Inc . , a citizens interest group Amigos de Bolsa Chica, and the City) is projecting approximately 4400 residential units; Figure 2 provides a conceptual plan of development in the Bolsa Chica as proposed by the coalition . The actual number of units is uncertain at this time because the cost of restoring the approximately 1100 acres of wetlands is not known. Some fundin may be available from the Los Angeles and Long Beach ports as a result or wetland mitigation requirements . Should this funding materialize, the restoration costs -to the major landowner (Signal Landmark, Inc. ) would be reduced, thereby allowing development' of fewer units . City services appear adequate to serve the project development and the City is participating in the Bolsa Chica traffic modeling project to insrire that. circulation concerns are addressed. 2. 3 .8 Availability of Public Services and Facilities As a highly urbanized community, public facilities are available to facilitate development throughout Huntington Beach. All of the land de., ignated for residential use in the Low Density, Medium Density, Medium-High Density and High. Density categories is presently served by sewor lines, water lines , streets, storm drains, telephone, electrical and gas lines . While areas designated for Residential Estate are not currently served by sewer and water lines and storm drains, the Ellis Golden West. Specific. Plan provides for necessary improvements to be installed over the' next few years. This Specific Plan will also help to alleviate another constraint to development in this area, fragmented land ownership. 2-18 ---�'—I UP TO 6.5 DUTAr- _ — UP 1012.5 OUlrCUP TO 18,0 OUIAC ••.,: - •LiNF AR ESHA ftft��ll���� PARK r WLT'LAND,S '\ r ESHA I ACREAGE SUMMARY n / OPEN SPACE \ LA JJ D USE TYFE `RES .•. tr. Flip. \ \ RESIDENTIAL 412.3 NE Ll.'NAS/ESHA/OPE N SPACS 1109.9 ."��.?'::' Ll"EAR PARWESHA' 50.9 ..—� . �� a`8-` - -i =t 1_ --�� F_GOD Cu:�TRC1L CHANNEL A WETLANDS %• �`'// r- i_. �_�.� ESHA'/ /! / ��r(. OPEN SPACE -i C /I ` WETLANDS ESHA / OPEN SPACE - - F 16: /... - 1 WETLANDS ) ESHA OPEN�!f'. � • SPACE li f 1 I / r• ARK / ESHA WETLANDS PEN SPACE -r- — - _ - - - ------- -- -- -_.. .. _- ._ .. - - ..-..._.. I ..INON-NAVIGABLE -----"--.--,------.�1 _____-_-� FOCEAN CONNECTION . PACJ-IC OCEAN Hp PACAFIC OCEAN SOURCE:- VAI.E SPECK 7AYLOP. rCh�t Fc North. FIGURE 2 ROLSA CHIC,' Rr.SIDENTIAL•DEVEIOPMENT PLAN 2.3.9 Residential Development Potential Compared with Huntington Beach's Housing Needs As indicated in Section 3.4 of the Housing Element, the Regional Housing Needs Assessment (RHNA) prepared by SCAG has identifed a future housing need for Huntington Beach of 6,228 units to be developed over the next five years (1989-1994) . Combining the residential development potential on vacant, underutilized, redevelopment, nor.-residential and surplus sites, an estimated 7, 527 additional unit-s(a) ;:ould be developed in the City (refer to Table 3) . This would indicate ti.ai- the City' s General Plan and zoning provide for a residential development capacity which is adequate to accommodate the City's share of regional hous-ing! ne.eds . In addition, with annexation of the Bolsa Chica, an estimated 3,800 to 5, 700 additional dwelling units could be accommodated in Huntington Beach . In terms of development opportunities for lower income households, approximately half of potential residential growth is allocated to higher density housing (Medium-High and High Density Residential ) , which can more readily be priced to meet the needs of Very Low and Low Income households . However, even at these higher densities, the City will need to offer incentives to private market developers to ensure the provision of units . affordable to Very Low and Low Income households. Condominium units will provide homeownership opportunities for some smaller, Moderate Income households though ownership assistance will still be necessary to provide many, of the City.' s Moderate Income households the option of home .purchase. (a) The ultimate bui.ldout potential in the City. is approximately : 10,000 additional dwelling units, reflecting -the approximate 2,500 units constrained from development over the next five years. 2-20. i TABLE 2 CITY OF HUNTINGTON BEACH POTENTIAL RESIDENTIAL DEVELOPMENT SUMMARY . RESIDENTIAL DWELLING UNIT POTENTIAL Under- Land Use Vacant utilized Second Redevelop- lion-Resi - Surplus Category Land Land Units ment Areas dential Land Land TOTALS Residential 605 14 619 Estate i Residential 605 235 25 232 1 ,097 j Low Density I Residential 1 , 169 600 1 , 769 Medium Density Residential 439 103 542 Medium-Nigh Density Residential 1 ,813 801 520 3 , 134 High Density Planned 366 366 Community TOTALS 4,997 235 25 904 600 766 7, 527 2-21 3.0 HOUSING PLAN 3.1,. Evaluation of Accomplts.hments Under 1984 Housing E-1-ement. State- Housing Element law• now.. requires- commun:it-Jes to assess the achievements under adopted. housing. programs as part of the five year update to their' Housing ' E1eitents. These results should be quantified where possible, e.g. rehabi l'itat.ion results,. !)Lit may be.- qual itati-ve where necessary,. e.g. 'mitigation- of governmental co.ns:;:ra.ints. These results then. need to be comp.ared with- what.was: projected- or- pl-anned i-n the.. earl i er element. Where, significant. sho.rtf01s exist between _what.. was planned and what. was actually, achieved, the re.a-sons; for.,- such differences. must ber discussed. The following section provide:s- an- overview of the specific program goals from the Huntington Beach 1984 Housing Element,. and an assessment of the actual accomplishments- under these programs during the 1984;1989 period of the Housing Element. These programs. a.re or.g.anized around' t-he:. fiv.e- major 'issue areas addressed in the Housing.. O'ement.. ISSUE #1- ACCESSIBILITY Program: Aid in% the production of-.1.6.4� senio.r citizen. units in Talbert-Beach redevelopment a-rea: thro-ugh~ land-ac.q:u_is:iti:o.n: a-n w.r.1te=down. Accompl i shment:. In-' 1.9.85, the- Hunti ngto.n-. Beach-, Re.dtyel.o.pment. Agency; i n-• partnershi p. w-i th a p:riv.ate=deve:l oper comp,l eted Emerald C:ov:ea s.en-i o:rr housing project:. Thee project` co.ns:ist-s.= of` 1':B_4`- ap.ar.tment' umi.ts: ate 5R., percent below- market rental. rates-.,. ThJ-s- projec.t.. re.cP_iueda a:; Mat:i-ona-1" Cert i'f i rate;. of Meri t. from- the.-.U.S... D'ep:artmeht. o:fz' Hou.s.i ng_- and Urban-. Devel opment for pub.l-i-c/private= partner.s.hip�s�.. Program: Devel op C-i ty•-stand-a:rd.s_• to imp.ement_ new.,Stag andi F'6.der•a_l:: Yaws,. fore Nandi cap-p.ed. acce'ssi bi l ity. in newW developments Accomplishment: The, City has: a.d:opted the_ S-tate_ Uniform- Bui•l'd.i!ng,: and- Housing Codes which, incorp.ora:te St-ate:- req.uirements1 for hand.ie:ap.ped". accessibility. Pro-gram: Provide $1500., grants!. to: owners of: rent a] hou.s:ing; to make- ui1:ils accessible to. the. physica;T.ly hand:itapped. Accompl i shment.:- Only- four gr.ants: were- issued .d.u.ri ng-; the% 19.8:4=-198.9 per.i,od. More creative and: intense ma-rketing, appears., to tie needed: to.. tncrea:se� participation. 3:-.1* ISSUE. #2 - ADEQUATE PROVISION -0r6grami Provide tax-exempt single-.family-and multi -fam;iflynmortgage revenue bonds to facilitate the development of affordable units: Accomplishments:. On a City-wide basis, the City. issued single-family mortgage revenue bonds in the amount of $4,660,000 in 1984 to finance 55 moderate :income -home purchases. In addition,: six multi -family projects, with a i;otal of 40.2 units. affordable a to 1 ower i,�come households have been completed. - Program: Consider the reduction or waiver of development .fees for,.- projects participating in an affordable housing program. Accomplishments: The City has assumed development fees on ,one Redevelopment Agency sponsored project for the provision of affordable ._ housing. Program: Continue to contract with the Orange County Housing, Authority to provide Section 8 rent subsidies to lower income households. Accomplishments: According to the Housing Authority, Huntington Beach has been one of the more aggressive communities in the region pursuing needed rental subsidies. As of March 1989, the City had secured a total of 577 housing vouchers and certificates. . Huntington Beach is the only city in Orange County that participates in Project Self-Sufficiency, a program which 'offers housing vouchers to low-income single parents who are either currently homeless, or: at risk of becoming homeless. Program: Review development standards to determine which ones can be relaxed in order to reduce housing costs, and process appropriate code revisions . Accomplishments: Code revisions have been adopted which institute senior development standards with reduced minimum unit sizes and reduced parking requirements . Program: Revise the multi -family zoning ordinance to reduce required recreation space and common open space in smaller projects. Accomplishment: - As the City wishes to maintain a minimum level of recreational and open space amenities in all multi -family projects, this program is no longer being pursued. Code revisions have been adopted for senior housing developments. to allow greater flexibility in the location of required open space. ISSUE #3 - ADEQUATE SITES Program: Review Division 9 of the City Municipal Code to ensure it reflects Housing Element policies and programs. 3-2 Accomplishments: The City is beginning .a comprehens i,ve:rewri.te`to D1'vi�sion 9 of the Municipal Code; appropriate -�r.evistons_and `housfng-rela�-ed ordinances :wi.11 .be incorporated ,into -the,:'Cade-.at;this -time to reflect Housing Element .pol-icies !!and progV-ams. . ,, : T. Program: Investigate the feasibility -:of using-vacated. school -and _park sites and .other publicly owned land;;for-affordabl:e. housing. Accpmplishment.: Irby. Park is- being..reviewed .a�;;,,a potential site:-'for affordable housing ,through :the .,201Ye,set-asi.:de prc INam. _°In._additton, the City is working. with. 'a. pr.ivate -developer::to�coi struct -a..ho.using.,project on a closed school site, a...portion--X—f .the._'Uhi.ts ,;whi ch.,.wo.ul:d ..be _'set�a:si'de for low and moderate :i'ncome households. Program: Evaluate land use -:and zoning,:desiInationslo :determine*wher-e i-ncreased densities -can ,be -_utiJized',.to .prov deJor affordable -housing. Accomplishment: The -City r:.eviews on-.an on-going--basts the potential for density increases for :affordabl-ei housi,ng-:prdJectsL:on vacant,_.and ',infil.l sites as they are presented 'to the :City -by.:devel-opers. ISSUE #4 •PRESERVING HOUSING'-AND.-•NEIGHBGRHOODS Program: Continue to. make --availiabl-e)l-ow Anterest -rehabil i tat ton =1.o.ans for low-income owner-occupted::ho.usi,ng, vWtth a.-program go.al,_of.,25"l:oans annually. Accomplishment: ,Approxi:mately e-,ZZ6-Lowner-=.occupied :-rehabfl:fta.tTon +loans have. been made since 1984,;;prtmar-1 y .concentrat `d 'e n .ahe:Ctty's -designated target -areas: OakView, :Comm&e tr'cfl-e, -South .Shores, _t berty :and Downtown/Oldtown. Program: Enhance and ;preserve:,the .mulai-=family `housing-sto k:wft n 'the Oakv.iew nefghborhoo:d. Accomplishment: Thirty .1 oans.:were-.made :since -:adoption-.of tthe . 1984 Housing Element in the ;Odkview neighborhood, :for--a-,total rehabil.i:tation:.of 1.20 units. Program: Provide low ' in.teres.t :reh�abi',l it:ation loans :to .investor--owners of multi-.family rental housin.g .:in targeted rev italizati-on;:axeas, With�the goal ,of rehabi.l i tat i ng '3'5 un i ts.!per-ye-ar. Accompl ishment: ' This goal .,has,i.been.rmet and exceeded,—,With,—an—.—.aver.-age -of 50 units rehabilitated per yearrwi-thi-n -the ,designated .target.�a_r..eas. Program: Develop and implement..a comprehensive impr.ovement,,:program- for Commodore Circle, with -the ,goal .of-rr,-ehabil,itating 80._.unrts.and -*.initi.ating occupancy and maintenance standards. 1:3 Accomplishment: This program has been completed since adoption of the 1984 Housing Element. All substandard units have been r0rabilitated, public improvements have been completed, and all owners have executed a maintenance agreement with the City. Program: Develop and implement a City-wide maintenance ordinance. Accomplishment: The City has recently expander: its code enforcement program to encompass property maintenance violations, and has increased the number of code enforcement officers to four to more adequately address code complaints. ISSUE #5 - PRESERVING AFFORDABILITY Program: Oversee the continued affordability of low and moderate income units produced with tax exempt financing. Accomplishment: The City has hired a consultant to develop a monitoring program to ensure the continued affordability of low and moderate density bonus units for which public subsidy has been provided. Once in place, bi-annual monitoring will be conducted to verify the income of the tenant, and to verify the continued affordability of the unit. . Program: Prepare a condominium conversion ordinance to regulate the conversion of rental housing to ownership units in order to mitigate impacts on affordable rental housing. Accomplishment: The City adopted its condominium conversion ordinance in November 1984 which requires converted units to conform to the requirements of the City's Planned Unit Development (PUD) Ordinance. Since most existing multi -family housing units have been developed to standards that 'generally require substantially less open space and parking than that required under the PUD Ordinance, these requirements serve as a significant disincentive for condominium conversion. Program: Continue to pursue the production of affordable housing. Accomplishments: Flee City has participated in numerous 'affordable housing developments since adoption of its 1984 Housing Element. They have utilized a combination of City incentives, such as density bonus and bond financing, combined with outside funding sources to achieve a total of 391 affordable units. Specific publicly-assisted residential projects with an affordable housing component developed since adoption of the 1984 Housing Element include the following: 3-4 y. TABLE 4 AFFORDABLE HOUSING DEVELOPMENTS CITY OF HUhTINGTOiVVACH's 198'4=1989- NAME LOCATION UNITS TOTAL/LOW,MOD Bri s.as Del Mar 409 Utica 44/8 Corona 79'16 Stark 8/1 7924 Stark 8/1 7891 Holt 8/1 7901 Holt 8/1 . Emerald Cove Talbert &`Jolly bane 164/164 (seniors) Gustine Yorktown &'Huntington 2I/4' Harbor Gateway Warner & Green 1O2/31 Hartfelter Newland & Slater 8/1 Huntington Bayshore Lake & Atlanta 159/34, Huntington Village 16171 SpringdaTe 114/27 (seniors) Ratsui 5087' Dunbar 6/1' Rivermeadows 8945'Riverfieadows 152/31 Seabridge Villas 20251 Cape Coral, Lane 344/6q Stellrecht 16032 Springdale 61/12 Villa Corsica 19th & W916ut 18/4 Waldman 17230 Elm 7/1 TOTAL _ 1.232Z391 Program: Create and maintain an inventory `of sites potential-l:y, suitable for affordable housing and refer these to private developers. Accomplishments: The City's Economic Development Department has developed an inventory of potential sites for affordable housing, including vacant lands, park and school sites. In addition, the Planning Department conducted a comprehensive vacant lands inventory in April 1988 which can be utilized to identify additional sites for afforable housing. 3-5 3.2 Goals, Policies, and Program Actions Background The City of Huntington Beach adopted a series of goals and policies as part of its 1984 Housing Element to guide the development and implementation of its housing program. As pirt of the current Housing Element update, these adopted goals and politics have been evaluated in terms of their effectiveness and actual results io implementation. In addition, the adopted goals and policies were reviewed as to their appropriateness in addressing the housing needs identified in this Housing Element update. r The following goals and policies reflect a revision to those previously adopted to incorporate what has been learned from the -prior element, and to adequately address the community's identified housing needs. These goals and policies will serve as a guide to City officials in daily decision making . Housing Program The City of Huntington Beach has adopted three goals for its housing program which are consistent with State and Regional housing policies. These goals are: 1 . The attainment of decent housing within a satisfying living environment for households of all socioeconomic, racial , and ethnic groups in Huntington Beach. 2. The provision of a variety of housing opportunities by type, tenure, and cost for households of all sizes throughout the City. 3. The development of a balanced residential environment with access to employment opportunities, community facilities, and adequate services. In order to progress toward the attainment of these goals, the City has committed itself to specific policies and programs. The policies are organized around five issue areas which are identified by the California Department of Housing and Community Development as important priorities in addressing local housing problems. This section presents a discussion of the problems inherent in each of the issue areas, followed by policies adopted by the City to resolve these problems. The program actions intended to effect their solution then are discussed, including anticipated impacts, responsible agencies, funding source, and the time framF: for completion of each program. In aggregate, the Element's program at-tions set: forth the following five ,year housing goals, as detailed in Table 4A: Total Units to he Constructed: 7,527 total units/675-750 assisted Total Units to be Rehabilitated: 680 Total Units to be Conserved: 965 - 1 ,015 A comprehensive discussion of the existing and proposed programs of the Housing Element is contained in Section 3.6. 3-6 TABLE 4A HOUSING ELEMENT 'PROGRAM SUMMARY Number of Units Program Action to be Assisted New Construction: 1 .2 200 2.2 50`100 2.9 300 2. 13 125-150 Total 675-7'50 Rehabilitation: 1 .5 10 1 .6 10 4.2 400 4.3 100 4.4 80 4.6 80 Total, 680 Conservation: 2.5 815 2.112 150-200 Total 965-1,015 3-6. 1 GOAL 1.0 ACCESSIBILITY Providing housing opportunities for all households. regardless of race, color, religion, sex, family size, marital status, national origin, ancestry, age or physical disability is an es_:�ntial element of a sound housing -program. In order to assure ndn-d'iscrir,ination in housing, the City contracts with the Orange County. Fair Housing Council which investigates complaints of discrimination because of race, ethnicity, marital status, or sex. The Fair Housing Council also handles problems with evictions, rent increases, substandard- housing conditions, and disputes regarding deposit returns, as well as arbitrating landlord-tenant conflicts. One problem needing attention is that of handicapped and elderly persons whose access to decent housing may be prevented by architectural barriers. Policies and actions addressing these- special needs have been included under accessibility because it is felt that the lack of assistance to these groups may constitute a subtle, if unintended, form of housing discrimination. 1 .0 Policies In order to assure accessibility to decent housing for all;, the City of Huntington Beach shall : ° Affirm a positive action posture to assure that unrestricted access is available to the community. • Promote housing which meets the special needs of handicapped and.. elderly persons. ° Encourage the provision of adequate numbers of housing units to meet the needs of families of all sires. 1.0 Programs - 1. 1 Action: Continue to utilize the services of the Orange C6unty Fair Housing Council . Anticipated Impact: All complaints of discriminatory practices in housing within the city will receive attention. In- add tio.n:, OCFHC will provide counseling in landlord-tenant disputes, special assistance for ethnic minority and female.-headed housathalds (which includes escort services to locate adequate housing),; b1lingua.l housing literature and video-tapes presentations, days-care services, and housing assistance counseling. 3-7 � 3 Responsible Agencies: Huntington Beach Economic Development Department (EDD Funding Source: CDBG funds. Schedule: Ongoing. 1 .2 Action: The City will continue to make ati,;.ilable Redevelopment Agency-owned property within the Talbert-Beach redevelopment area for the construction of senior citizen and/or low and moderate income housing. Provide for reduced development standards through use of the City's Senior Residential Suffix 'zoning. Anticipated Impact: Aid in production of up to 200 units for senior citizen and affordable housing. Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. Funding Source: Redevelopment Set-Aside Fund. Schedule: Based on final acquisition of parcels. 1 .3 Action: Implement state and federal laws for access and adaptability for the physically handicapped. Continually adopt updates to the State Uniform Building and Housing Codes to reflect current accessibility requirements. Anticipated Impact: More locational choice for the physically handicapped due to an increase in the supply of suitable rental units. Responsible. A encies: Huntington Beach EDD and Community Development Department (CDD) . Funding Source: None necessary. Schedule: Ongoing. ` 1 .4 Action: Continue to coordinate with and financially support the Dayle Macintosh Center to maintain a directory of accessible housing for handicapped persons. Anticipated Impact: Assistance to handicapped persons in locating liousinging. Responsible Aencie5: Huntington Beach EDD and the Dayle MacInt.osh Center._ __ Funding Source: CDBG funding. Schedule: Ongoing. 3-8 1 . 5 Action: Actively market grants,, through preparation and distribution of information packets, which are available to owner`s `of rental housing for modifications necessary to make units accessible to and suitable for the physically disabled. Anticipated Impact: The provision of an increased number of rental. units syitabl•e for physically disabled persons . The five year goal is for modification assistance to ten renter units. . Responsible Agencies: Huntington Beach EDO and the Dayle MacIntosh Center. Funding Source: CDBG funds. Schedule: 1990-91 . 1 .6 Action: As part of the ongoing rehabilitation program, fund rehabilitation loans which include improvements to make housing accessible to handicapped persons within designated neighborhoods. Anticipated Impact: An increased amount of locational choice for the physically disabled. The five year goal is for modification . assistance to ten owner units. Responsible Agencies: Huntington Beach EDD. Funding Source:. CD.BG funds, Redevelopment Set-Aside. Schedule: On.yoin.9 3-9 GOAL 2.0 ADEQUATE PROVISION Adequate provision for the housing needs of all economic segments of the community is an issue of the highest priority in Huntington Beach. For reasons previously discussed, it appears unl ;'~ely that market forces alone will produce enough housing that is affordable to low and moderate income households to meet expected needs. Since decent housing for all is important to the welfare of the entire city, it is particularly important to address this need through the use of those public powers which impact housing. 2.0 Policids To ensure adequate provision of housing for all economic segments of the community, the City of Huntington Beach shall : • Encourage the provision and continued availability of a range of housing types throughout the community, with variety in the number of rooms and level of amenities. ° Encourage both the private and public sectors to produce or assist in the production of housing with particular emphasis on housing. affordable to lower income households, as well as the needs of the handicapped, the elderly, large families and female-headed households. ° Utilize density bonuses and other financial incentives where feasible to encourage the production of low and moderate income housing. Provide rental assistance vouchers, as available, for some or all of the affordable units provided. ° Take advantage of existing infrastructure and public iarprovements� to provide additional affordable housing by allowing second units in single-family zoning districts. • Facilitate- the development of mixed-use projects containing residential and non-residential uses which can take advantage of shared land costs to reduce the costs of land for residential uses through General Plan designation and the Specific. Plan: process. ° Encourage alternative forms of homeownership, such as shared equity ownership and limited equity cooperatives and housing arrarWments, such as Shared Living Units, to encourage affordability. • Encourage the development of childcare facilities coincident with new housing development through conditions on project approval at the CUP or E:IR level , and review the City's Zoning Ordinance to identify any unnecessary restrictions related to the provision of fancily day care and childcare facilities in residential zones. • Promote adoption of development standards which reduce housing costs. 3-10 Review all regulations, ordinances, departmental processing procedures, and residential fees related to rehabilitation and/or construction to assess their impact on housing costs, and revise as appropriate. ° Provide the management and personnel resources necessary to carry out identified housing programs and responsibilities. Continue and expand utilization of Federal and State housing assistance programs. ° Promote the availability of sufficient rental .housing to afford maximum choice of housing type for all economic segments of the community. community. ° Review the City's condominium conversion ordinance, and consider revising to allow modified requirements for units which are set aside for low and moderate income households. ° Encourage the retention of adequate numbers of mobile homes and investigate areas for potential new mobile home zoning. • Continue to enforce the City's mobile home conversion ordinance. • Continue to coordinate with local social service providers and notify of available City funding to address the needs of the City's homeless population. ° Encourage the provision of alternative housing through replacement housing and/or relocation for low or moderate income households displaced by public or private developments. • Ensure that any adverse impacts are minimized when increasing densities or relaxing standards in order to provide for low and moderate income housing. ° Investigate the development of single room occupancy (SRO) hotels to provide housing opportunities for very low income residents. 2.0 Programs 2. 1 Action: Apply to the State Mortgage Bond Allocation Committee for single-family bond allocations to enable below market rate financing to be offered on qualifying projects to moderate income households . Anticipated Impact: Make a greater share of housing stock affordable to--f'irst-time buyers. Responsible Agencies: Huntington Beach EDD. Funding Source: Bond proceeds. Schedule: Ongoing. 3-11 2.2 Action: Continue to offer incentives, including density bonus, land write downs, and write downs of other development costs, to for- profit and non-profit developers, for the development of senior citizen and low/moderate housing. Anticipated Impact: Development of between 50 to 100 additional affordable units during the 1989-1994 pe} 'od. Responsible Agencies: Huntington Beach CDD. Funding Source: Department budget. Schedule: Ongoing. 2.3 Action: Provide consultation and technical assistance to aid private developers in expanding housing opportunities. Anticipated Impact: Increased housing choice and more affordable housing. Responsible Agencies: Huntington Beach CDD and EDD. Funding Source: Department administrative budgets. Schedule: Ongoing. 2.4 Action: Continue the City's outreach campaign to Solicit participation of private developers _in affordable housing programs; maintain a roster of interested firms. Anticipated Impact: The production of affordable housing. Responsible Agencies: Huntington Beach EDD. Funding Source: Huntington Beach EDD Administrative Budget. Schedule: Ongoing. I 2.5 Action: Continue to contract with the Orange County Housing Au—eiority to administer the Section 8 Housing Assistance/Voucher Program and aggressively pursue the attainment of additional' housing vouchers. Anticipated Impact: Consistent with the City's Housing..Assistance Plan, augment the current level of rental assistance (577 certificates/ vouchers) , with a five year assistance goal of 238 additional' rent subsidies. Responsible A encies: Huntington Beach EDD and the Orange County Housing Authority. 3-12 Funding_ Source: Huntington Beach EDD Administrative funds/OCHA, potential use of Redevelopment Set-Aside to augment rental subsidies. Schedule: Ongoing. 2.6 Action: Continue to contract with the Orange 'County Housing Authority to screen and verify incomes -�r potential participants in housing programs. Anticipated Impact: Ensure that recipients of''affordable housing are qualified for such housing . Responsible Agencies: Huntington EDD/OCHA. Funding Source: Huntington Beach EDD Budget. Schedule: Ongoing. 2.7 Action: Review development standards, such as minimum size, open space, parking, to determine which ones can be relaxed in order to reduce housing cost; process appropriate code revisions as part of the zoning ordinance update. Anticipated Impact: Reduction in the cost of housing. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budget. t Schedule: 1989-90. 2.8 Action: Evaluate the feasibility of developing a spe'cific' procedure for fast track processing projects with an affordable housing component. Anticipated Impact: Reduction in holding costs for affordable housing projects, thereby improving •the economic 'feasibi'Fity of such projects. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989-90. 2.9 Action: Continue to provide tax exempt mortgage financing for new mini=family housing. 3-13 Antici_pated Impact: Increased supply of rental housing stock affordable to- ower income households. Based on previous levels of developer participation, the City's goal is to provide mortgage financing for three projects (estimated 300 units) over the next five years . Responsible Agencies: Huntington Beach 1:1DD/Redevelopment Agency. Funding Source: Tax exempt financing. Schedule: Ongoing as projects meet criteria. 2. 10 Action: Continue to operate Project Self-Sufficiency to address the eed ns _df low income, single parents by offering rental assistance, job training,and other needed services. Antiated Imjaact: Curtail additional single parent households from becoming homeless. ResE�onsiple Agencies: Huntington Beach EDD. Funding_Sources: CDBG funds and private donations. Schedule: Ongoing. 2. 11 Action: Continue to offer financial assistance to local groups which provide services to the area's homeless population. Provide public notification of the availability of funds through newspaper advertisements, as well as direct not-ification to local service providers. Anticipated Impact: Address the needs of the City's homeless through provision of 15% of the City's CDBG budget for social services. Responsible Agencies: Huntington Beach EDD. Funding Source: CDBG funds. Schedule: Ongoing. 2. 12 Action: Actively market the City's shared housing program to increase the number of roommate matches made between senior citizens. Utilize the City's Public Information Office to advertise the program through such methods as Public Television and placement of brochures in local community centers. Investigate developing a pilot project to match residents of varying age categories which links up with Project Self-Sufficiency. 3-14 Anticipated Impact.: Provide expanded opportunities for seniors to remain in their homes, while providing affordable housing options for seniors who do not own a home. Goal is to provide for 30-40 roomate matches per year. Responsible Agencies: Community Services Department, Huntington Beach EDD. Funding Source: Department Budgets. Schedule: 1990. 2.13 Action: Develop and implement a shared equity program to provide own payment assistance to qualifying low and moderate income first time homebuyers . Anticipated Impact: Provide homeownership opportunities for 25-30 low and moderate income first time homebuyers annually. Responsible Agencies: Huntington Beach EDD. Funding Source: Redevelopment Set-Aside. Schedule: Establish program within one year. 2. 14 Action: Continue to provide for the housing needs of large families through the provision of a) rent certificates for larger units to accommodate overcrowded households as part of the Rental Rehab Program, and b) single-family rehabilitation loans for room ' additions to alleviate unit overcrowding. Anticipated Impact: Provide adequately sized affordable housing which meets the needs of the City's large families. Responsible Agencies: Huntington Beach EDD and Orange County Housing Authority.- Funding Source: CDBG funds and Section 8 certificates/vouchers. Schedule: Ongoing. 2. 15 Action: Review the City's Zoning Ordinance to identify any unnecessary restrictions related to the provision of family day care and childcare facilities in residential zones. Anticipated Impact: Enhanced opportunities for day care, providing needed services to female-headed and family households. 3-15 Responsible Agencies: Huntington Beach CDD: Funding Source: Department Budgets. Schedule: 1989-90. 2. 16 Action: Investigate the- use of specific plans to promote a .b.a.la:nce of housing and open space, and. t.o reduce -she per u.ntt* cost of housing through such methods as clustered housing, zero Tot Tine on smaller lots, flexible setbacks, reduced. parking s.tandard:s and lot si;zes.. Anticipated Impact: Reduced ;housing d.evelapment costs and ass.o.ciated decreases in sales/rental pri-ces.. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 19.89-90. 2.17 Action: Investigate the feasi:bil.ity. -�and a -passibl.e_.ordinance to permit Single Room Occupancy ;(SRO) hotels as a.-mechanism. firr p.r..ovi-di ng affordable housing. Anticipated Impact: F:aci:l it.ate':t+he,-devel,opment:of�SRG&. Responsible -Agency: Huntington. Beath- CDD;. Funding Source: pepar.tment 'Budge.ts. Schedule: Complete study.:and.prepare a report within-. ane:_,year-. 2. 18 Action: Encourage -dev.el'o.per.s._to .p,urtve '.'gap" 'f i-na:nc,iing from the Urange County Housi,ng.Au.t.hority for.residen.ti.al projects-.offeri.ng affordable units. Anticipated Ism ac_t: I�ncreas7e -the supply of*-a.ffo.rdabl..e.. heus:ing. :by. offering inf anei'al assistance to .proje.ct -'de:velopers.. Responsible -Agent: Huntingt w Beach EDD. Funding Source: Orange County Hous.tng Authoority. Schedule: Ongoing_. 3-16 GOAL 3.0 STANDARDS AND PLANS FOR ADEQUATE SITES A key element in satisfying the housing needs of all segments of the community is the provision of adequate sites for housing of all types, sizes, and prices. This is an important function of both zoning and General Plan land use designations. Since thr City is already developed to a large extent, provision for future housing needs may require the rezoning of some areas where appropriate to meet Musing needs and where economically feasible in terms of City facilities and services. An assessment of the adequacy of sites must include the collective capacity of sites community-wide as well as the suitability of individual sites for non-market rate housing. 3.0 Policies To assure the adequate provision of sites for housing, the City of Huntington Beach shall : ° Utilize the following general criteria for identifying and evaluating potential sites for low and moderate cost housing and sites for the elderly and/or handicapped. While compliance with the following criteria is preferable, no site shall be dismissed for failure to meet this criteria and shall be judged on its own merit. Sites should be: - located with convenient access to arterial highways and public transportation, schools, parks and recreational facilities, shopping areas, employment opportunities. - adequately served by public facilities, services, and utilities. - minimally impacted by seismic and flood hazards. Where such hazards cannot be avoided, adequate mitigation measures shall be incorporated into the design of all proposed development. - minimally impacted by noise and blighted conditions. - compatible with surrounding existing and planned 'land uses. - located outside areas of predominantly lower income concentrations. • Plan for residential land uses which accommodate anticipated growth from new employment opportunities. • Locate residential uses in proximity to commercial and industrial areas and transportation routes to provide convenient access to employment centers. • Promote the rezoning of vacant or recyclable parcels of land to higher densities where compatible with surrounding land uses and available services in order to lower the cost of housing. 3-17 Utilize .surplus park and/or school sites for residential use where appropriate and consistent with ,the .City' s General Plan. Permit the- developmerit of manufactured housing in single-family zones, and accommodate the development of mobilehome parks through the City's Manufactured' Housing Overlay Zone. 3.0 Peograms 3.1 Acta on: . Maintain an inventory 'qf, vacant 1 and in the City and-make. .,available to interested parties for use in -identifying potential residential development sites. Anticipated Impact: Provide information which may expedite identification of residential development opportunities in the City. This may in turn . expedite the consolidation of fragmented ownerships and- the development of housing. Responsible Agencies : Huntington Beach-CDD. Lund-in Source: Department Budgets. Schedule: Ongoing. 3 .2 Action: Review Division 9 of the City Municipal Code to ensure it reflects Housing Element policies and programs while maintaining 'adequate standards for development. Anticipated Impact: Ensure consistency in carrying out the housing program while maintaining quality development. Responsible Agencies:. Huntington Beach�C.DD Funding Source.: Department budget. Schedule: 1989-90. 3.3 Action: Monitor changes in industrial and commercial land uses to assess their -impact on residential land use. Antici_pated_Im aact: This action is intended to reflect changing_ conditions in, the city in order to adequately• respond Ao current housing needs. , Responsible Agencies: Huntington -Beach CDD. Funding Source: Department budget. Schedule: Ongoing. 3-18 3.4 Action; Work with the four school districts in Huntington Beach to provide residential development opportunities on surplus school sites. Anticipated Impact: Increase in the availability of sites for residential development. The City is committed to providing residential development on surplus school sites to enable it to meet its regional housing needs, and will work towards the creation of 776 additional dwelling units over the ` ,ve year period.. Responsible Agencies : Huntington Beach CDb end Department of Public Works . Funding Source: Department budgets. SchgduIp Ongoing. 3 .5 Action: Investigate General Plan land use and zoning designations to determine where increased densities can be utilized to provide for rental units for households of lower and moderate incomes. Anticipated Impact: Increase in the number of suitable sites for development of affordable housing. Responsible Agenciu: Huntington Beach CDD. Funding Source: Department budget. Schedule: Ongoing. 3 .6 Action: As part of the update of Division 9 of the City Municipal Code, identify appropriate zones for the location of transitional housing and emergency shelters for the homeless . din ici ated Impact: Provide adequate sites for the development or rehabilitation of housing for the homeless. sponsib .Aggncies: Huntington Beach CDD. Funding Sourcg: Department Budget. Schedule: 1989-90. 3-19 • J 3.4 Action: Work with the four school districts in Huntington Beach to provide residential development opportunities on surplus scho,)l sites. Anticipated Impact: Increase in the availability of sites for residential development. The City is committed to providing residential development on surplus school sites to enable it to meet its regional housing needs, and will work towards the creation of 776 additional dwelling units over the ` ive year period. Respgnsibl g A9enci": Huntington Beach CDG and Department of Public Works. Funding Source: Department budgets. Schgogl..e: Ongoing. 3 .5 Action: Investigate General Plan land use and zoning designations to determine where increased densities can be utilized to provide for rental units for households of lower and moderate incomes. AnticipatedImpact: Increase in the number of suitable sites for development of affordable housing. Responsible Agencies: Huntington Beach CDD. Funding_Source: - Department budget. Schedule: Ongoing. 3.6 Action: As part of the update of Division 9 of the City Municipal Code, identify appropriate zones for the location of transitional housing and emergency shelters for the homeless. An ici atgd Impact: Provide adequate sites for the development or rehabilitation of housing for the homeless. &tpgnsib a Agencies: Huntington Beach COD. Funding Sour_gg: Department Budget. Schedule: 1989-90. 3-19 3.7 Action: Continue to work with property owners in the Holly,-Seacliff Master Plan area to address various land use issues, including the redesignation of non-residential lands to residential uses, subject to the procedures required under State law. Anticipated Impact: Increase in the available land inventory for residentialconstruction,onstruction, providing for an additional 1 ,000 - 1 ,700 residential dwellings. Responsible Agencies: Huntington Beach CCL' Funding Source: None necessary. Schedule: 1990. 3-20 GOAL 4.0 PRESERVING HOUSING AND NEIGHBORHOODS The State of California has made housing preservation and conservation a high statewide priority. While most of the City's housing stock is less than 20 years old and in good condition, seve, 21 neighborhoods contain significant levels of housing deterioration. Ti:ese neighborhoods include the Washington, Oakview, Liberty, Commodore, South Shores, Oldtown and Townlot communities. Through its Community and Neighborhood Enhancement Program, the City offers low interest rehabilitation loans as an incentive for unit upgrading. 4.0 Policies In order to preserve housing and neighborhoods, the City of Huntington Beach shall : • Encourage the maintenance and repair of existing owner-occupied and rental housing to prevent deterioration of housing in the city. • Encourage the rehabilitation of substandard and deteriorating housing where feasible. ° Where possible, take action to promote the removal and replacement of those substandard units which cannot be rehabilitated. ° Provide and maintain an adequate level of community facilities and municipal services in all community areas. ° Improve and upgrade community facilities and services where necessary. • Encourage compatible design to minimize the impact of intensified reuse of residential land on existing residential development. 4.0 Programs 4. 1 Action: Review all changes in planned land uses to determine the cumulative impact on community facilities. Anticipated Impact: The assurance of adequate levels of community facilities and services to all areas of the city. Responsible Agencies: Huntington Beach CDD and Department of Public Works. Funding Source: Department budgets. Schedule: Ongoing. 3-21 4.2' Action: Continue- to make available low.kinterest_ r.ef abilitation loans o�r low owner-occupied housing. t Anticipated Impact: Rehabilitation of .deteriorated housing in the City and preservation 'of existing single-family housing stock. The program goal i s 90 units per year with 'a- maximum loan.,of :$15,000 per unit. . ..Responsible Agencies: Huntington.- Beach. .ED0, Funding Source: CDBG funds, -Red'evelopment. Set 'Aside: Schedule: Ongoing. 4.3 Action.: Continue .to enhance and preserve the multi -family housing stock within the Oakview neighborhood. :' Anticipated Impact:. Reha.bilitatli,on of.. substandard four-plex units in the' O o.akview, neigh ' rhood, comb ined .with ,rental assistance to assure affordability. The five year goal is' for rehabilitation of 100 units . Responsible Agencies.: Huntington Beach •:EDD/Redevelopment Agency. .... Funding Source: HUD Rental Rehabilitation Program; Section 8 housing vouchers. Schedule: Ongoing. 4.41 Action: Within selected target areas, provide low interest rehabilitation loans to investor-owners of multi-family rental housing. Antici ated Impact: Rehabilitation of .deteriorating, multi-family housing. and the preservation and enhancement of rental housing stock occupied -by low and moderate income households. Goal of 16 units per year. ResLonsible Agencies: Huntington .Beach EDD. FundingS_o_ur�ce: CDBG Loan Pool , new CDBG funds, and Redevelopment Set--Aside. Schedule: Ongoing. 4. 5 Action: Monitor housing conditions in neighborhoods considered marginal or at. risk for deteriorated conditions in order to identify the need to expand existing rehabilitation programs. Anticipated Impact: . The prevention of deterioration in marginal neighorhoods. 3-22 _ Responsible Agencies: Huntington Beach EDD and COD. Funding Source: EDD Administrative funds . Schedule: Ongoing,. 4.6 Action: Continue to implement the compre,',ensive improvement plan for Commodore Circle. Anticipated Impact: Rehabilitation of 80 units and initiation of occupancy and maintenance standards. Responsible Agencj: Huntington Beach EDD. Funding Source: COBG funds; Rental Rehabilitation. Schedule: Rehabilitation and public improvements complete in 1989. Maintenance standards complete in 1990-1991 . 4.7 Action: Continue to enforce the City's code .enforcement program, including pro;:erty maintenance inspections. Anticipated Impact: Provide an enforcement tool to insure uniform maintenance consistent with the standard prevalent in the community. Responsible Agency: Huntington Beach CDD. Funding Source: Department Budget. Schedule: Ongoing. 3-23 4.8 Action: Continue to actively enforce land use ordinances. Anticipated Impacts: Improved maintenance throughout the City. Responsible Agency: Huntington Beach CDD. Funding Source: Department Budget. Schedule: Ongoing. 3-24 GOAL 5.0 PRESERVING AFi=OROABILITY An important aspect of making housing available to all economic segments of the community is ensuring that assisted housing remains affordable to the income groups for which it was intended or wf,-,:h presently occupy it. In the rental housing market, the priority of preserving affordability may conflict with that of preserving housing and n6ighborhoods, since rehabilitated units can command higher rents. This conflict necessitates a delicate balance. 5.0 Policies In order to preserve affordability, the City of Huntington Beach shall : ° Promote and, where possible, require the continued affordability of all units produced with participation by the City or its authorized agents including density bonuses and tax exempt financing. ° Encourage the continued affordability of those units utilizing public funds for rehabilitation. • Regulate the conversion of existing apartment units to condominiums to minimize the adverse impact of conversions on the supply of low and moderate income rental housing, keeping in mind that condominiums may offer affordable opportunities for home. ownership. ° Mitigate the displacement impact$ occurring as a result of residential demolition through unit replacemefit 'or relocation of tenants. ° Conserve affordable housing opportunities in the Coastal Zone through implementation of State requirements for replacement of low and moderate income housing, and for inclusion of affordablo units where feasible in new residential construction. 5.0 Programs 5.1 Action: Develop an affordable housing mdnitoring; progr.am, including restrictive covenants for rental units and financing mechanisms, to ensure the long term conservation of affordable units for which City incentives have been provided . AnticiPated: Impact: The retention of, affordable units produced with public sector assistance/incentives. ' Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. Fundin Source: Department budgets. Schedule: 1989. 5.2 Action: Develop a Multi -Family Unit Interest Rate Write-Down. Program targeted towards publicly-subsidized.housing projects with the- potential for conversion to market rate. 3-25 Anticipated Impact: Conservation of existing stock of publicly-subsidized affordable housing. Responsible Agencies: Huntington Beach EDD/Redevelopment Agency Funding Source: Redevelopment Set-Aside. Schedule: 1989-1990. 5.3 Action: Continue to enforce the City's condominium conversion ordinance, and evaluate revising the ordinance to allow modified requirements if a portion of the units are set aside for Low and Moderate Income households. Anticipated 11npact: Regulate the conversion of rental housing to ownership units in order to mitigate impacts on affordable rental housing. Responsible Agencies: Huntington Beach CDD and the Office of the City Attorney. Funding Source: Department budgets. Schedule: Ongoing. 5.4 Action: Continue to pursue production of affordable housing, utilizing CDBG funds, Redevelopment Set-Aside funds and other available resources to meet the Redevelopment Agency's ongoing relocation/replacement of housing obligations. Anticipated Impact: Increase the supply of affordable housing. Res onsible Agencies: Huntington Beach EDD/Redevelopment Agency. Funding Source: CDBG funds; Redevelopment Agency funds and other resources as available. Schedule: Ongoing. 5.5 Action: Establish contact with local community development corporations and other non-profit housing providers to encourage and facilitate the development of affordable housing in Huntington Beach. Anticipated Impact: Increased housing opportunity for low and moc —mate income households. Rest?psible Agency: Huntington Beach EDD. Funding_Source: None necessary. Schedule: Within two years. 3-26 I �. 5.6 Action: Meet and consult with mobile home owners who .4're potential displacees from mobilehome parks which intend to convert to other uses. Anticipated Impact: Assessment of impacts and .preparation of strategies to address needs of -displacees.. Responsible Agencies: Huntington Beach CDC and Redevelopment Agency. .Funding_Source: Department 'Budgets. Schedule: Ongoing. 5.7 Action: Provide financial assistance for relocation of persons displaced by redevelopment activities, including occupan.ts ..of mobile homes. 'Anticipated Impact: Mitigation of adverse impacts on displaced residents. Responsible Agency: Huntington Beach EDD. Funding Source: Redevelopment Tax Increment. Schedule: Ongoing. .5.8 Action: Continue to .monit•or-.and .:assure replacement of Tow .,and moderate income housing which is_demolished .or converted in the Coastal Zone. Anticipated Impact: Conservation of affordable ho.uis�ing :in the coastal zone through replacement �r-equirements. Responsible A2.�nU: Huntington Beach CDD. Funding_ Source: Department 'Budgets. Schedule: Wi.thi-n one year. 3-V GOAL 6.0 ENERGY CONSERVATION Reducing expenditures for energy can result in effective reductions in housing expense, since the costs of utilities are part of overall housing costs . The City does, therefore, want to encourage more efficient use of energy to promote private benefits (less expensiv,,-- utility bills) and public benefits (reduced reliance on imported fuel ) . 6.0 Policies ° Encourage the use of energy conservation devices and passive design concepts which make use of the natural climate to increase energy efficiency and reduce housing costs. • Consider developing retrofit ordinances requiring attic insulation and weatherstripping to be implemented at the time of resale or improvements to the dwelling. ° Investigate the feasibility of the use of renewable energy sources (solar and geothermal ) for hot water, space, and pool heating of larger housing developments . • Encourage CC&Rs that protect solar access in new development. • Continue to encourage alternative forms of transit such as buses, bicycles, and walking 6.0 Programs 6. 1 Action_: As part of the update of Division 9 of the City Municipal Code, incorporate development standards which specify required energy conservation features for residential development. Anticipated fact : Reduced energy consumption in residential projects. Re,Ronsible A�genc Huntington Beach CDD. Fundinq Source: Department Budgets. Schedule: 1989-1990. 6. 2 Action_: Review the City's zoning and subdivision regulations, EiR a rid .site plan review guidelines, and municipal landscaping policies and revise as appropriate to address the issue of solar access . 3-28 GOAL 6.0 ENERGY CONSERVATION Reducing expenditures for energy can result in effective reductions in housing expense, since the costs of utilities are part of overall housing costs. The City does, therefore, want to encu:-i•age more efficient use of energy to promote private benefits (less expensi ?e utility bills) and public benefits (reduced reliance on imported fue+ ; . 6.0 Policies Encourage the use of energy conservation devices and passive design concepts which make use of the natural climate to increase energy efficiency and reduce housing costs. Consider developing retrofit ordinances requiring attic insulation and weatherstripping to be implemented it the time of resale or improvements to the dwelling. ° Investigate the feasibility of the use of renewable energy sources (solar and geothermal ) for hot water, space, and pool heating of larger housing developments. Encourage CC&Rs that protect solar access in new development. ° Continue to encourage alternative forms of transit such as buses, bicycles , and walking. 6.0 Programs 6. 1 Action: As part of the update of Division 9 of the City Municipal Code,--incorporate development standards which specify required energy conservation features for residential development. Anticipated Impact: Reduced energy consumption in residential projects . Responsible Agenc _: Huntington Beach CDD. FundiqA__Source: Department Budgets. Schedule: 1989-1990. 6.2 Action: Review the City's zoning and subdivision regulations, EIR and-site plan review guidelines, and municipal landscaping policies and revise as appropriate to address the issue of solar access . 3-28 .• . Antici ate�act: Sustained energy conservation in existing and new dev opment through the maintenance of solar -access. Resnonsible_Agency: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989- 1990. 6.3 Action: Continue to support and assist in publicizing energy conservation programs offered by the utilities. Anticipated ,Impact: Improved residential energy efficiency and related reductions in housing costs for participating households. Responsible Agency: Huntington Beach COD. 'Funding Source: Department .Budgets. Schedule: Ongoing. 3-29 3.3 Housin Assis.tanc.e Plan Housing As'sistahce Plans (HAPs) are required for ju.r.-isdfc'tions in the Community Develop0ent Block Grant (CDBG) Program. The HAP details the programs and prbjEcts to be supported by the CDBG program as implemented through the Federal Department .of Housing a-nd Community Development .(HUD) and `approved' by City Council . Housing assistance includes rehabilitation of substandard units and rental subsidies for lower income. households , as well as several other housing programs. The HAP identifies the rental subsidy needs of lower income households categorized into three major groups: elderly (including handicapped) , small family (four or fewer persons) , and large family as shown in Table 5. TABLE 5 CITY OF HUNTINGTON BEACH RENTAL SUBSIDY NEEDS OF LOWER INCOME HOUSEHOLDS: 1989-1991 ---___---_.___ -. ---_---------- SMALL LARGE: --- -- --- INCOME LFVFI- ELDERLY FAMILY FAMILY TOTAL Very Low 919 3,548 416 4,883 Other Low 279 3,276 306 3,861 Expected to Reside 0 38'4 40 424 To Be Displaced 28 50 5 37. TOTAL 1 ,226 7,258 767 9.251 Source: City of Huntington Beach, Housing Assistance Plan, 1988-1991 A total of 9,251 lower income rental households are projected to need rental assistance during the 1988-1991 time period. Small family households are anticipated to comprise approximately 79 percent of those in need, with elderly households comprising 13 percent and large family households comprising 8 percent of the total household need. Given this inventory of households in need, the HAP has set forth the following rental assistance goals for the three year period: TABLE 6 CITY OF HUNTINGTON BEACH LOWER INCOME HOUSEHOLDS TO RECEIVE RENTAL SUBSIDIES: 1988- 1991 SMALL LARGE ELDERLY FAMILY FAMILY TOTAL Households to be Assisted 142 625 67 834 Percent 17% 75% 8% 100% I Source: City of Huntington Beach Housing Assistance Plan, 1988-199i 3-30 The City has set as a goal the achievement of 9- percent of its rental., assistance need for lower income households.; HUD. has identified 2-9 percent as a reasonabl a goal . Rental `ass'Tttance 'wi I I be plea.vided to each '.of -the three needs groups in proport'fon' to their identified needs: In terms of the improvement or..rehabi.l:ita'tion, of the physical housing stock, the .HAP has '.ident.ified ,the following goals: TABLE 7 CITY OF HUNTINGTON BEACi! UNITS TO. BE ASSISTED FOR LOWER 1NGOMf HOUSEHOLDS: 198871.991 Rehabilitation of New Home Type of Occupancy 'Substandard Units . Construction Improvements Owner 112. 0 0 Renter 196_ 250 10 Source: City- of Huntington Beach Housing Assistance Plan, 1988-1991 The HAP identifies a series of federally-funded rental subsidy and rehabilitation programs which will be implemented to meet the identified housing assistance goals. These programs have been combined with other non-Federally funded programs to form.the overall program strategy for the Housing Element, as. pres.ented in the' program:actions in Section 3.2, and further described in Section 3:6 - Description ' of Implementing . Programs . 3-31 . 3.4 Regional Housing Needs Assessment State law requires jurisdictions to provide for their share of regional housing needs. The Southern California Association of Governments (SCAG) has. determined the 19$9-1994 needs for the City of Huntington Beach, and has estimated,;the .tAftber of households 'which the City will be expected to accommodate during this period. f Utur� housing needs reflect the number of new units needed in a jurisdiction ;):ased on households which are expected to reside within the jurisdiction .(fu�ure demand) , plus an adequate supply of vaunt housing to assure"Mobility it.y and new units to replace losses. These needs were forecast 'by -the 1988 Regional Housing Need-s 'Assessment (RHNA) , which considered ,6h a regional and local level : market demand for-housing, employment opportunities, availability of suitable sites for public facilities, commuting patterns, type and tenure of housing need, and housing needstof farm wbrkers . According to the model , housing to accommodate 6,228 households would need to be added to the City's ,June 30, 1989 total households by July 1994 to fulfill the City's share of regional housing needs . Based on the distribution of regional income, this total can be further divided among HUD' s four income groups to identify the types of households to be provided for as follows:, TABLE 8 CITY OF HUNTINGTON REACH 1989-1994 HOUSEHOLD NEEDS BY INCOME GROUP Very Low (0-50% County median income 984 (15.BY) Low (50.80% County median income) 1 ,264, (20.3%) Moderate (80-12dx-County median incom) 1 ,370 (,2?.0%) Upper, (over 120'% County median incor�) 2,610: (41 .9%) Total Households 6, 228 Source: SCAG Regional Housing Needs Assessment, June 1988, as ' revi sed'. The intent of the future needs allocations by income group is to relieve lower income impaction - the undue concentration of very low and low income households in a jurisdiction. Localities must fully address their existing needs in order for impaction avoidance goals to be achieved in the future period . 1'he Housing Element sets forth policies and programs to address the future housing needs identified. by the RHNA. The City'.s Land Use Plan provides for a residential develoj ent capacity which is more than adequate to fulfill the City's shrlp;`of regional housing needs. In addition, the Housing Element sets orth policies and programs to address the future housing needs of those income groups not provided for in the market, namely Very Low and Low, and to a lesser degree Moderate Income households . 3-32 r s 3.5 Redevelopment Set-Aside Fund Legislative Background State Redevelopment Law provides the mechanism whereby cities and counties within the state can, through adoption of an ordinance, establish a redevelopment agency. The Agency's primary purpose is to provide the legal and financial mechanism necessary to aa�;,o-}ss blighting conditions in the community through the formation of a redevelopment project area(s) . of the various means permitted under State Law for fl,ranting redevelopment implementation, the most useful of these provisions is tax increment financing. This technique allows the assessed property valuation within the redevelopment project area .to be frozen at its current assessed level when the redevelopment plan is adopted. As the property in the project area is improved or resold, the tax increment revenue generated from valuation increases above the frozen value is redistributed to the redevelopment agency to finance Redevelopment Project costs. In many early redevelopment projects, a major focus was upon demolition of blighted residential buildings and development of new non-residential uses or upper income residential projects. While these type of projects worked to eliminate blighting conditions, they did little or nothing to aid the mostly low and moderate income residents of the housing that was demolished, in addition to having a negative impact on the community' s supply of affordable housing. To address the problems that arose with regard to the effect of redeveloment on iow 'and moderate income housing, the state legislature enacted a series of changes to Community Redevelopment Law which require redevelopment agencies to undertake activities which will assist in the production of low and moderate income housing. The legislative requirements regarding low and moderate income housing generally fall into three basic categories: 1) expenditure of 20% of the tax increment revenue to increase and improve the supply of low and moderate income housing in a community; 2) requirements that redevelopment agencies replace low and moderate income housing which is destroyed as a result of a redevelopment project; and 3) requirements that a portion of all housing constructed in a redevelopment project area be affordable to low and moderate income persons and families. The requirement for redevelopment agencies to set aside 20% of a project's tax increment for low and moderate income housing can provide a significant source of funding for implementation of a community's housing programs. Huntington Beach Seven years ago, the Huntington Beach Redevelopment Agency began its efforts to reverse the economic decline of several of the City's most blighted neighborhoods. This campaign was first introduced in 1982 as the "Community and Neighborhood Enhancement Program, " a concept which set in motion activities and plans to upgrade housing, stimulate investment, and improve circulation patterns in each of the four redevelopment project areas established that year: Main-Pier, Oakview, Talbert Beach, and 3-33 Yorktown-Lake. The progress of these project areas spurred the Redevelopment Agency to include .its primary commercial center, Huntington Center, in its redevelopment plans in 1984. Through its redevelopment efforts, the City. Council/Agency is responsible for 344 new units of affordable housing, including three senior housing projects. Significant housing rehabilitation improvements have also, been achieved within the Community and Neighborhood Enhancement target areas. While the Redevelopment Agency has made significini; progress in attaining the goal of increasing the City's affordable housing stock, none of the 20% set-aside fund has yet been expended, primarily due to its low balance. However, with completion of a recent tax allocation bond sale, nearly $3.7 million dollars is currently allocated to the 20% set-aside fund. In 1988 AB 4566 mandated that redevelopment agencies with "excess surplus" (a) monies in their housing set aside funds must either spend these funds within five years or else transfer them to another local housing authority for expenditure. State law sets forth a variety of options for localities to expend their housing funds, including the following: Land Disposition and Write-Downs Site Improvements Loans Issuance of Bonds Land and Building Acquisition by Agencies - Direct Housing Construction Housing Rehabilitation Programs Rent Subsidies Predevelopment Funds Administrative Costs for Non-Profit Housing Corporations A Housing Committee comprised of three City Council/Redevelopment Agency members and four citizen representatives was formed to develop the fiscal year 1989-90 20% Housing Set-Aside budget and implementation plan. The Plan identifies expenditure of redevelopment set-aside funds on the following programs: 1 . Rehabilitation projects benefiting low and moderate income households where federal CDBG funds are found to be too restrictive. 2 . Multi -Unit interest rate write-downs for existing federally assisted (Section 236) housing projects with the potential for conversion to market rate with expiration of the original loan. (The City also intends to explore the feasibility of having non-profit sponsors take over expiring projects with financing provided by tax-exempt multi -family revenue bonds . ) (ajx"Excess surplus" is defined as any unexpended and unencumbered balance in an agency's Low and Moderate Income Housing Fund that exceeds the greater of five hundred thousand dollars or the aggregate amount deposited into the Fund pursuant to Community Redevelopment Law (Health and Safety Code Sections 33334.2 and 33334.6) during the agencies preceding five fiscal years. 3-34 3. First time buyer deferred payment loans '.for down payment assistance to qualifying low and moderate income houseWolds. 4. Private market leveraging of funds (devtj,,,opment cost write-downs) to Increase the number of affordable ,units provided in publicly assisted housing developments. 5. Mobile home assistance to low income mobile home owners to assist with a variety of eligible programs, perhaps thcluding emergency repair grants. Based on this first year budget for expenditure of the City's 20% set-aside fund, these programs have been incorporated into the Housing Element. In addition, based 'on direction provided from City redevelopment and housing staff, several additional Housing Element programs have identified the redevelopment set-aside fund as a potential source of program funding over the five year period of the Housing Element. 3-35 3.6 Description of Implementing Programs The Housing Element describes the housing- needs of the Ci,ty's current and projected population, as well as the specific needs resulti,rvg from the deterioration of older units, lack of affordable housing for lower income groups, and special needs for certain segments of the City"s population. The goals and policies contained in the Housing Element .aodress the City's identified housing needs. These goals and" pc O cies are implemented through a series of housing programs that are tinded and administered through a variety of local , regional , State and Federal agencies . Section 3.2 of the Housing Element sets forth the program actions the City intends to implement over the five year period of the Element. The following section provides a more detailed description of these programs and references the program actions) related to each housing program. In addition, in order to further expand affordable housing opportunities in Huntington Beach., several additional housing programs are described which are under study but have not yet been committed to by the City. 3.6. 1 Current Housing Programs and Recent Actions The City takes an active role in providing housing assistance through its Housing and Community Development programs. In addition, the City has taken a number of actions in the past to further the production of housing and to improve the Citq:'s housing stock. The City's current housing programs and recent actio6s 'related to hdus.ing are described in the folldwing section. 3.6. 1.1 New Construction Tax-Exempt Mortgage- Propr! m The City maintains an on-going program to provide tax-exempt mortgage financing for construction and permanent loans for multi-family housing. The City sells borjds to provide the financing for the program. The income from the bonds Is tax-exempt which increases the effective net yield to the bond holder. Federal law requires that 20 percent of the total units in a bond-financed project be reserved for lower income households. Recent State legislation requires that one half of the reserved units be set aside for Very Low Income households. (Pvogram Action 2.1, 2.9) Den s i ty on-us Incentives Pursuant to State law, if a developer allocates at least 20 percent of the units in a housing project to lower income households, 10 percent for very low income households, or at least 50 percent_ for "qualifying residents" (e.g. senior citizens) , the City must either, a) grant a density bonus of 3-36 . 25 percent, along with one additional regulatory concession to ensure that the housing development will be produced at a reduced cost, or b) provide other incentives of equivalent financial value based upon the land cost per dwelling unit. The density bonus me,ch+anism has proved an effective tool. for encouraging affordable housing, in 'the City with 136 affordable units in 13 projects completed under this program. In .order to ensure the continued affordability of units provided un`ar the program for a minimum of 30 Years, the City will require that restr-i-tive covenants be filed with the dped'on all new density bonus projects Qnd will bi-annually monitor the units. As an incentive to increase the number of affordable units provided, the City may also offer to write down the development costs in exchange for the provision of additional affordable units. The number of:additional units set aside is a proportionate percentage of the City's contribution to the overall construction costs for the project. Approximately $780,000 in redevelopment set-aside funds have been 'xllocated for fiscal year 1989-90 for "private market leveraging." ('Program Action 2.2) Land Assemblage and Write-Down The City can utilize both CDBG and redevelopment set-aside monies to write down the cost of land for low and moderate income housing. The intent of this program is to reduce land costs to the point that it becomes economically feasible for a private (usually non-profit) developer to build units which are affordable to low and moderate income households. As part of the land write-down program, the City may also assist in acquiring and assembling property and in subsidizing on- and off-site improvement costs. (Program Actions 1 .2, 2.2) Talbert Bead► Redevelopment Area: The City's Redevelopment Agency has assisted in the consolidation of previously inaccessible parcels in this 25-acre project area to facilitate residep ial and industrial development. The following residential projects have biro con-structed in''this project area to date: 1 . Emerald Cove - a 164 unit senior apartment project with 82 below market units. This project received a National Certificate of Merit from HUD for public/private partnerships. 2. Windward Cove - a' 96-unit senior condominium complex with initial purchase prices well below market rates. 3. Capewood - a 54-unit condominium complex for families. The developer of these units participated in the single-family Mortgage Revenue Bond Program to provide below-market-rate homes to first-time homebuyers. The Redevelopment Agency is currently working towards consolidating the two remaining parcels in the Talbert Beach project area to provide for the development of up to 200 additional residential units. 3-37 Affordable Housing Monitoring The City has hired a private consulting firm to develop an affordable housing monitoring program for Huntington Beach. The program will involve the filing of restrictive covenants on affordable units for which City incentives have been provided. In addition, bi-annual monitoring of the units will be conducted to verify the income of the tenant, along with the continued affordability of the unit. This ronitoring program will help to ensure the long-term conservation of affordab o units in Huntington Beach. (Program Action 5. 1) Shared Equity Program Equity sharing allows lower income households to purchase a home by sharing the costs of home ownership with a sponsor, such as a local housing authority. The sponsor and the buyer would together provide the downpayment and purchase costs to buy a house. When the house is sold, the equity earned through appreciation is split between the occupant and the sponsor according to an agreement made prior to purchase. The City is in the process of developing a shared equity program in which a loan pool will be established using redevelopment set-aside monies for downpayment assistance to qualifying low and moderate income first-time homebuyers. A Deed of Trust and affordable housing covenant will be secured against the property to ensure the use to be owner-occupied and the loan to be paid back with a proportionate share of the equity at the time the property is sold or the title transferred. The covenant will designate the use for the longest feasible time, but not for. less than ten years. One-million dollars of set-aside funding has been all.ocated to this program for fiscal year 1989-90 (Program Action 2.13) 3.6. 1.2 Assistance to Existing Units Section 8 Rental Assistance Payments/Housing Vouchers The Section 8 rental assistance program extends rental subsidies to low income families and elderly who spend more than 30 percent of their income on rent. The subsidy represents the difference between the excess of 30 percent of the monthly income and the actual rent. The voucher program is similar to the Section 8 Program, although participants receive housing "vouchers" rather than certificates. Vouchers permit tenants to locate their own housing. Unlike in the certificate program, participants are permitted to rent units beyond the federally determined fair market rent in an area ,provided the tenant pays the extra rent increment. The Reagan Administration proposed converting the certificate program to -a voucher system, which will likely occur through time. The City of Huntington Beach contracts with the Orange County Housing Authority to administer the Section 8 Certificate/Voucher Program. 3-38 According to the Housing Authority, Huntington Beach has been one of the more aggressive communities in the region in pursuing needed rental subsidies. As of March 1, 1989, Huntington Beach had secured a total allocation of 577 housing vouchers and ''certificates. Consistent with the City's Housing Assistance Plan, the City'§ five year assistance goal is for an additional 238 rent subsidies. However, it is impossible to know how many additional housing vouchers the City will actually receive from HUD. (Program Action 2.5) Community and Neighborhood Enhancement The Community and Neighborhood Enhancement Program is a comprehensive program designed to promote and assist in the upgrading of declining residential neighborhoods within the City. This program is designed to meet individual needs, to be responsiye to the social and economic circumstance which exists within each neighborhood, to- have strong resident and property owner support, and to be limited to a few priority areas so that the full benefit of a concentrated effort might be realized by generating substantial physical and visual improvement within these areas. The areas within the Neighborhood Enhancement Program include the Oakviaw, Washington Street, Commodore Circle, .South Shores,. Liberty, Oldtown and Townlot Neighborhood's. Rehabilitation loans are provided through the City's Housing Rehabilitation Loan Program and Rental Rehabilitation Program, described fn the following sections. There is a continuing effort to provide housing'rehabil'it'ation assistance, ' combined with needed public improvements, to promote the renovation of existing units within these neighborhoods with an estimated $650,000 to be budgeted over the next fiscal year for`thi's program. (Program Actions 4.2, 4.3, 4.4, 4.6) Housing Rehabilitation Loan Program This program utilizes CDBG funding to provide low interest loans to owners of residential properties. Deferred Payment rehabilitation loans of up to $10,000 are available to Very Low Income owner-occupied households. These loans are due and payable with 6% one-time only interest fee at the time of sale or transfer of ownership. The City also offers the following types of below market interest ,rate loans for residential rehabilitation: a)3,o loans available to lower income households; b)6% loans available to median income households within identified Community and Neighborhood Enhancement target areas ; and c)8% loans available to above-median income households within identified Community and Neighborhood Enhancement target areas for code compliance repairs only. The maximum loan amount for a below market interest rate loan is $15,000. i'he City of Huntington Beach has effectively marketed its Housing Rehabilitation Loan Program, with approximately 80 loans processed each year. This success is due in large part to the City' s aggressive pursuit of housing rehabilitation as part of the Community and Neighborhood Enhancement Program. Rehabilitation loans are also offered to income-qualified property owners as part of the City' s code enforcement activities . (Program Actions 4.2, 4.4, 4.6) 3-39 ..Renta.l. Rehabilit.aii-W !�r.ogram `C ' -Rental .Rehab P�ro�ge0f li s a separately funded, Federal program establ i.stied 'bo fancaurage, the ►�_bibiTitation' df` substandard apartment, bu.ild9ngs-In targeted ne}ghbo-r:.hoods. Through, this program, the City offers up tq. A 51 4 deferred l'oah to .pay towards t'he total cost, of a rehab ili`tatioti project, with the balahce financed through a''6% interest rate loan. The: .inaximum Than amount is $40,OQU' . To qualify, for a -Rental Rehab subsidy, more than 70% of the building's t^ tnants must be of low or moderate income. ' In order to address- potential displacement impacts resulting from increased rents' in rehabilitated units, .the City has coupled the -Rental Rehab•,.Program with its rental assistance program. Existing Low-Income tenants in rehabilitated buildings are offered Rent Vouchers to ensure their 'housing costs will not exceed 30% of their gross monthly income. (Program Action 4.3) HandicUged Grant Program Handicappped households have special needs wh'ic'h include access ramps, wider doorways, assist bars in the bathrooms,, lower cab-inets, and special access sources to. :se.corid stories. - The City is working with 'the .Dayl e Macintosh Center for the, disabled of"Orange County to encourage -owners of rental, units to make a share -of 'such, un i is 'available for -access i bi 1 i ty modifications . The City .utillizes CDBG fund thg to offer $1 ,.500'handicapped mod.i-fi cat ion .grants to multi -unit property owners to encourage modification to existing Units. to meet these special needs - of:-the- handicapped'. The Housing. Element recommends the City undertake more. intensive marketing of thi:s .program to -widen parti.cipation: -(P-rogram ' 'Action 1 .5) Rome .Weather-ization Improvements As residential energy cost-s ,eontinue to :rise, increasing ,utility costs reduce the affordaEiil.iir�.' of housing-, thus ag ravating the City' s current shortage of affordable units,; Both the SoTern California Gas. Company. and Southern :Cal J,f0rni.a Edison ,offer a variety of energy conservation services designed to hetp-:low�i-Xt.ome, s6ior.:c'itizens, permanently handicapped, and non-English speaking cusUmers 'control .their energy, use. Homeowners or renters may. :qualify for the following types of weatherization improve►nents;freie of charge: attic 'insulation, ;weather strippi.ng,, caulking, water, heaterinsulation blankets, ,'water-saving showerheads, heating/cooling dkt. insulation, other types of limited home-repairs which increase energy efficiency. (Program Action 6.3) Code Enforcement One of the primary objectives of the City's code enforcement program is. to bring substandard housing units into -compliance with City. codes. The code enforcement program is operated through the City's Community Development. Department whose field inspectors respond to complaints related-to substandard housing, property maintenance, overgrown vegetation; . trash and 3-40 . debris, inoperable vehicles, illegal conversions, improper occupancy, and other nuisance and .zoning complaints. Upon inspection, if violations of code exist, a violation notice is issued to the responsible party. A reasonable period of titre is given to bri-ng the violation into compliance. Failure to comply will result in code compliance proceedings. Citations may be issued Dy code enforcement officers in where health and safety may be threatened. Due to citizen complaints and community concerns ,--agarding deterioration within the City, the code enforcement program has been expanded to provide three full time field inspectors and a fourth part-time inspector. This staffing level enables the Community Development Department to respond to the average monthly caseload. of 125 code complaints within a reasonable response period. (Program Actions 4.5, 4.8, 4.9) Condominium Conversion Ordinance The City of Huntington Beach has adopted a stringent Condo Conversion Ordinance that requires converted units to conform to the requirements of the City' s Planned .Unit Development (PUD) Ordinance. Since most existing multi-family housing units have been developed to standards that generally require substantially less open space and parking than that required under the PUD Ordinance, these requirements serve a's a significant disincentive for condominium conversions. The identifaed..action for this program indicates review and potential revision of the City's current Condominium Conversion Ordinance to allow modified requirements if a portion of the units are set aside for Low and Moderate Income households. (Program Action 5.3) Interest Rate Write-Downs for Existing Affordable Housing A community's existing affordable housing stock is a valuable resource which should be conserved and, -if necessary, improved to meet habitability standards. The City of Huntington Beach has several federaTly assisted (Section 236) housing prO octs with the potential for conversion to market rate with expiration of .the original loan. In order to address this potential loss in affordable units, the City is in the process of developing a Multi -Family Unit Interest Rate Write-Down Program. This program will offer a lump sum write-down of an existing interest bearing note to reduce debt service on existing multi -family apartment complexes. In return, the property owner will execute with the City a recorded covenant requiring the continuance of affordable rental rates to low and moderate income households or a minimum of fifteen years . (Program Action 5.2) A second approach which may be pursued to conserve existing affordable units would be for a non-profit sponsor to purchase Section 236 or other subsidized projects at the current market value with financing provided by tax-exempt multi-family revenue bonds issued.by the City. The rating of these tax-exempt securities could be enhanced by pledge of the redevelopment housing set-aside funds, thus reducing the net interest cost of the mortgage loan. 3-41 3.6. 1 .3 Housing Services Hone Sharing Many seniors who would prefer to live independently resort to institutionalized living derangements, because of security problems, loneliness, or an inability to live entirely independently. A City-funded shared housing program is currently offered aL� Roger' s Senior Center in Huntington Beach. Roommate matches. are made be.ween seniors based on telephone requests. The Proge iph's A40i strator i od i cates requests for hone sharing are sporadic--six, to eight matches maaa for months in a row followed by months ,without any requests. The program action for home sharing indicates more active mil-keting should be undertaken to better advertise, the program's availability to seniors in the community. In addition, the program action calls for investigating the development of a pilot project to match residents of varying age categories which links in with Project Self-Sufficiency. (Program Acti_oh 2. 12) Project Self-Sufficien In attempts to curtail additional persons and families from becoming homeless, the City's Ec6n'4amic Development Department runs "project Self-Sufficiency" (PSS) . As its name suggests, the program aims to make persons independent of gover'&nent subsidies and become self-sufficient. To meet this goal , PSS provides housing assistance in the form of Section 8 housing vouchers to low-income, single parejAs- who are either currently homeless or at risk of becoming homeless. Ue program also matches the single parent with the appropriate agencies in -the community to receive needed assistance such as food, clothing, dhildcare and job training. In order to qualify for the voudher program, persons must reside or work in Huntington Beach or come from a homeless shelter sponsored by the Huntington Beach Resource Board. When' PSS is unable to provide services to those in need, the program refers these persons to other social services in the surrounding area. The>program is currently funded primarily through CDBG grants and private sector donations. (Program Action 2'. 10) Other Homeless Services The City of Huntington Beach provides funding ($43,000 in CDBG monies in 1988) to a variety of social service agencies which provide services to the area's homeless population; 15 percent of the City' s CDBG budget is allocated towards social service providers. Services provided by these organizations include lodging, food, clothing, bus coupons, housing referrals and counseling. In addition, a new shelter targeted at assisting the City's numerous adolescent homeless is set to open later this year. The City has indicated it may provide supplementary operational funds to this shelter, the Huntington Beach Youth Shelter. As part of the current update to the City',s Zoning Ordinance, appropriate zones will be identified for the development or rehabilitation of transitional housing and emergency shelters for the homeless. The City will provide public notification in the newspaper, as well as directly notify local service providers of the Zoning Ordinance update to solicit community input. (Program Actions 2.11 , 3.6) 3-42 r , 3.6.1.4 Removal of Governmental Constraints Senior Resident#a1 :Suffix Zoning The Senior Citizen Residential suffix was adopted to establish standards for residential `developtrients designed to, house senior citizens By adopting these standa e rds, the Gity recggnizes that housing creeds for senior citizens vary, in sam respects from the needs, non-seniors. When the suffix is applied to.. a property, certaih .develbpwent standards will be reduced; spec,ifical.ly, those related to floor area, site coverage, building separa`ti.on., building bulk,. parking AAd open space. These reduced standards. will ena'hle' senior citizen proj6r ts` to be built and sold/rented at a more affordable cost . ("Program Action 1 .2) Secon-d Unit Ordtnance The City of Huntington Beach has amended its ordinance code by adding a new subsection pertaining to second units in single-family residences. A second unit may be added to an existing single family structure subject to standards within the ordinance. This ordinance can provide a cost effective means of serving, additional develooftnt through the use of existing infrastructure and should provide relatively affordable housing for low and moderate income small households thin existing under- utilized structures. (2.0 Policies) Mobilehome Overlay Zone and Conversion Ordinance The Mobilehome Overlay Zone and Conversion Ordinance contains requirements for applying the mobilehome park overlay zone 'and provides minimum standards for an acceptable mobilehome relocation assistance plan if a mobilehome park is converted to other uses. Many senior citizens and low income households presently reside in the City' s mobilehome parks. The goal of the mobilehome relocation assistance plan is to provide alternative housing opportunities for mobilehome residents who may be displaced as a result of the conversion of mobilehome parks to other land uses. Any displacement of mobilehome units (or any low or moderate income housing) resulting from City-sponsored redevelopment activities will be replaced in equal number within four years and will be available at affordable rates. (2.0 Policies) Fast Track Processing The City is considering developing an expedited processing procedure for projects with an affordable component which require approval by the City's Planning Commission or Council . This program would be helpful in reducing holding costs while processing the approvals necessary for zone changes, density bonuses, plan check and building permit procedures, thereby resulting in lower construction costs and more affordable housing . The specific procedures for fast-track processing of affordable housing projects could be developed as part of the update to Division 9 of the City Municipal Code. (Program Action 2.8) " 3-43 3t.61:5 Fair Housing Oran a County Fair Hous1n.9 Council Huntington Beach is a member of the Or County -Fair Housing Council and will contribute $32j000 in,Community :Development Block Grant ,funds for its support during fiscal year; 1989-90. The primary programs of 'the Fair Housing Council include: 1) h.ousing djscr.,imina,,ton res.pons-e; 2} landlord- t' nt counseling; 3) low'-income h©.using ,advocacy -; 4) publication of the semi-annual Forum newsl;etter;� and 5) coEmnunity -awareness and education.. (Program Action I . l) 3.6.2 Housing Programs Under Study In orde-r to increase affordable housing..opportuniti-es in Huntington Beach, the .following additional programs are currently under study by .the City. Aeve'rse Mortgage Program The most substantial. asset of most elderly homeowners is their home, which in Huntington Beach has _inc.reased si.gnificantl_y in value wi,th . inflati,on . And while owning a home may. provide a rich asset base, with the on-slaught of retirement and .a, fixed ancome:, many .elderly homeowners quickiy become income poor. ' Home maintenance repairs mu:lt-i,ply as the home .ages,' and with the rising costs in home' utilities, insurance, and taxes, ma`in'tenan.ce often"".gets deferred al together, :creat,i n:g- a.n urr=safe -and .-often :depre-s-sing living environment for the senior. An alternative option for the elderly homeowner is to draw 'ne'eded' income from the accumulated equity in .their homes through a reverse -mortgage. 'A reverse mortgage As a deferred .;payment 1 o.an or a ser•i es of :such loans for which a home is pledged as security. Qualification for the 1.oan i-s -based primarily on property value rather -than .on income., allowing tthe -el derl.y homeowner ,on a fixed i ncome to recei ve 'a 1 oan =for whi ch he or zshe would otherwise not qualify. Most reverse mortgage programs permit homeowners to `borrow up to 80 percent of the assessed value. of their 'property, to receive needed, principal .of up to .25 ':percent.1of,the .loan, .arid -then to receive monthly -.annuity payments for -the life 'of the loan. The .San Francisco Develtopment Fund offers free: ,-training to .communities interested in organizing a neverse mortgage program for seniors . Rather than making the loans themselves, the Ci-.ty's role could be to facilitate the initiation of reverse mortgage loans through the :follow.i'ng -steps. First, the City would need to provide educational and counseling -services to seniors interested in pursuing -a ►,-everse mortgage. Secondly., •the City would need to work with local lending in'stituti-ons which currently provide these loans to gain a thorough understanding of 'the appl-ication process. The City could then work with the seniors to comple-te --the loan applications and assist in providing .any ;other -nece.ss:ary information 'to the bank. Local contacts which may be helpful to. the City -i-n setting up -a reverse mortgage program include the 'City of Orange, which -has been operating their mortgage program for over a year, and Securi..ty P,aci-f'i-c National Bank in Downey, which has begun offering reverse mortga-ge loans. 3-44 Non-,Profit Construction ,A non-profit housing corporation works to develop, conserve and promote a"ffordable housing, either owner or renter-occupied. Often; the non-profit is . i.nvolved with what, is called "a-ssisted housing" where some type of g.ove,rnment assistance (such as Section .8j is provided to the indiv-idual household' to keep rehts affordable. Housing -c hrporati ons .can -work with assisted hnusA in several ways: 1 . The non-profit may assemble a..devel-opment 'packi:ge and sell it to a profit-motivated developer. The• package usually- con-sists o-f- a site, project design, the, necessary permi-ts, - and, in- some cases, prelimi„ary financing commitments.. The -advantage of this method is-that the non-profit can get. low- and moderate-income housing- built while- endi-ng its involvement early in the process and going -on to other projects.. The disadvantage is that'Ahe non-profit. may lose control over the development at the time of sale. However; the non-profit' could negotiate to retain some control over the project in the recorded contractual agreement between it and the developer. 2. The non-profit may participate in aJ oint, venture with a profit-motivated de.veloper.. Though it -usually performs the :same functions as. in the first-.method, the 'non=profi..t can retain more_ .. control over the development and.,ga_in hands-on development- experience. while benefitting from the financial resources of the. for.-,.profit.,:',. de In this option;.-however, the non-,profit. h,as _-a'--I-onger nvo1•vement and will have 'to-',negotiate _ttie. rights and .-responsibi.l.ities of the two partners. 3. In the third approach, -the non-prof t *is .the developer.. In .this case, the group.must employ staff with .nece.ssary expertise or__.rely. heavily, on consultants. In return, the group hai A ofal control_ over the development. This option -requires more risk, money, t-ime., 'effort, and capability on the-part of the non-prQf.i't.. _ Anon-profit housing corporation can help -meet the goals for additional housing. by implementing or assisting with. the implementation of programs described in the Housing Element. The City should .coordinate with local non-profit groups or encourage the formation of a housing development corporation by interested parties in- the 'community' to -facilitate the cevelopment and improvement of low cost housing in'Himtingto:n Beach. ' ;_r}5 Nel,ghborhood Housing Services The Neighborhood Housing Services (NHS) program operates as a private non-profit group run by local residents, business leaders, and local government. The purpose of the NHS is to assist in rehabilitation and preservation of housing units in neighborhoods where the housing 'stock is deteriorating. Services provided by the NHS cz�n include rehabilitation counseling, assisting homeowners in :working with contractors, advise about financing, revolving loans: for rehabilitation, aO involving the neighborhood in the community. Limited funding for the NHS revolving loan fund is available through tiie Neighborhood Reinvestment Corporation (NRC) , a non-profit public corporation authorized by Congress to encourage revitalization of residential neighborhoods. NRC provides $50,000 grants for the revolving loan fund and makes available technical assistance to develop and maintaii; the NHS. Limited Equity Cooperatives Limited equity cooperatives provide a means of homeownership to people who could not otherwise afford to buy housing. A housing cooperative is owned by a corporation made up of the cooperative's residents. Members do not own the individual units in which they live, but rather they own a share in the corporation and thereby have the exclusive right to occupy a specific unit. In a limited equity cooperative, the amount for Iwhich a share may be sold is limited. to, ensure the long term affordability of the unit. Affordability is protected because the corporate entity holds a blanket mortgage where vacated units are not refinanced and resold, thereby protecting them from price inflation. The City can maintain information and limited equity cooperatives as reference for groups trying to organize a co-op. Mobile ,Home Park Assistance Program This program, offered by the State Department of Housing and Community Development, provides financial and technical assistance to mobilehome park residents who wish to purchase their mobilehome parks and convert the parks to resident ownership. Loans are made to low-income mobilehome park residents or to organizations formed by park residents to own and/or operate their mobilehome parks, thereby allowing residents to control their housing costs . Loans are limited to 50 percent of the purchase price plus the conversion costs of the mobilehome park, and are awarded by the State on a competitive basis . Applications must be made by mobilehore park residents who. must .form a resident organization, and a local public entity as co-applicants . The City could help to facilitate the use of this program by advertising its availability to mobilehome park. residents, and by serving as. co-applicant for. resident organizations applying to the State for funding. 3-46 APPENDIX A STATE HOUSING ELEMENT REQUIREMENTS I STATES !HQIlSING ELEKENT REQUIREMENTS T REFERENCE A. Housing heeds Assessment 1 . Analysis of population trends in Huntington Data Report, Beach in relation to regional trends `Section 2. 1 2. Analysis of employment trends in.Huntio0on Data .Report Beach in relation to regional trends Chapter 5.0 3. Projection and quantification of Huntington Housing Element Beach's existing and projected Section 3.4 housing needs for all income groups 4. Analysis and documentation .of Huntington Beach's housing characteristics including the following: a. level of housing cost compared to Data Report, ability to pay; Section 3.5 b. overcrowding; Data Report, Section 3.3 c. housing stock condition. Data Report, Section 4.3 5. An inventory of land suitable Housing Element for residential development including Section 2.3 vacant sites and sites having redevelopment potential and, an ,analysis of the relationsrhip of zoning, public facilities and services to these sites 6. Analysis of existing and potential Housing Element governmental constraints upon thq Section 2.2 maintenance, improvement, or develop- ment of housing for all income levels 7. Analysis of existing and potential Housing Element nongovernmental and market Section 2.2 constraints upon maintenanre, . improve- ment, or development of housing for all income levels A-1 i STATE HOUSIMG ELEMENT REQUIREMi+t1TS (continued) REQUIRED HOUSING ELEMENT COMPONENT REFERENCE 8. Analysis of special housing needs: Housing Element handicapped, elderly, large families, Section 2. 1 and female-headed households 9. . Analysis concerning the needs of Housing Element homeless individuals and families in Section 2. 1 Huntington Beach 10. Analysis of opportunities for energy Data Report, conservation with respect to Section 7.2 residential development B. Goals and Policies 1 . Identification of Huntington Beach's Housing Element community goals relative to maintenance, Section 3.2 ,improvement, and development of housinr 2. Quantified objectives and policies relative Housing Element to the maintenance, improvement, and Section 3.2 development of housing in Huntington Beach C. , Implementation Program An 'implementation program should do the following: I . Identify adequate sites which will be Housing Element made available through appropriate..4ction Section 3.2 with required public services �a#4 ��.e 7ities for a variety. of. housing types fir all ` income levels 2. Program to assist in the develoment of. Housing Element eiequate housing to meet the 'neds of Section 3.2 16w- and moderate-income households 3. Identify and, when appropriate and Housing Element possible, remove governmental constraints Section 3.2 to the maintenance, improvement, and development of housing in Huntington Beach 4. Conserve and improve the condition of Housing Element the existing affordable housing stock Section 3.2 in Huntington Beach 5. Promote housing opportunities for all Housing Element persons regardless of race, religion, sex, Section 3.2 Marital status, ancestry, national origin or color APPENDIX B City of Huntington Beach 1.989-Housing Element.Update 'technical Data Report ,Ap s�� - HUNTINGTON BEACH HOUSING ELEMENT TECHNICAL DATA -REPORT Revised June 1990 Prepared byt Cotton/geland/Associates, Inc. 1028 North Lake Avenue Suite 107 Pasadena, California 9.1104 #555 r' i CITY OF HUNTINGTON BEACH HOUSING ELEMENT TECHNI.C14 REPORT TABLE OF CONTWT',,' Pa e 1 .0 INTRODUCTION 1 .1 Purpose of Report 1-1 1.2 Sources of Information 1-1 1 .3 Huntington Beach Setting 1-2 2.0 POPULATION CHARACTERISTICS AND TRENDS 2.1 Population Growth 2-1 2.2 Age Composition 2-3 2.3 Race and Ethnicity 2-6 3.0 HOUSEHOLD CHARACTERISTICS 3.1 Household Composition 3-1 3.2 Household Size 3-2 3.3 Overcrowding 3-2 3.4 Household Income 3-3 3.5 Housing Affordability 3-7' 3.6 Special Needs Groups. 3-9 4.0 HOUSING UNIT CHARACTERISTICS 4. 1 Housing Growth 4-1 4.2 Housing Type and Tenure 4--2 4.3 Age/Condition of Housing Stock 4- 4.4 Housing Costs 4-13. 4.5 Share of Region's Housing Needs 4-2.6 4.6 Housing in the Coastal Zone 4-27 5.0 EMPLOYMENT CHARACTERISTICS 5-1 6.0 HOUSING CONSTRAINTS • 6. 1 Market Constraints 6-1 6.2 Governmental Constraints 6-2 6.3 Environmental and Infrastructure .Constra.ints 6-8 7.0 HOUSING OPPORTUNITIES 7 .1 Availability of Sites for Housing 7-1 I 7.2 Energy Conservation 7--12 s LIST Of; TABLES Tabl e. page 1 t Reg i 6n•ai' Popul ati`on- Browth: 1,970=•1986 2-1 2 Population Trends: ' .Huntington Beach and 2-2 ;' Surrounding Areas, 1980-1988 3 Projected Population Growth: 1988-2010 2-3 4 ..,Age ChAractertstics of Population: 11."0 & 1988 2-5- ' 5 Ethnic Composition: 1980 & 198.8 2-6 6 Household Type: 1980 & 1988 _ 3-1 7 ' .,Household Size: '1980-1993 1-2 8: - Median Household and Family -Income: •Huntington 3-3_ Beach and Surrounding Areas, 1979 9 Income Groups: 1979 & 1988 3-5 x 10 1988 Income Distribution by Subarea 3-8_ 11 .'Lower ' Income Households Paying Greater Than 30% 3-9 ' of Income for Shelter 12 Summary of Special Needs Groups: 1988 3-9 13 Social Service Agencies Which Provide Services 3-14 to the Homeless in the Huntington Beach ,-Area 14 ,-Housing Trends: Huntington Beach and Surrounding 4=1 'Area, 1980-1988 15 Housing Trends: 1980-1988 4-2 16 Age of Housing Stock: 1988. 4-5 r 17 Housing Stock Conditions: 1988-1991 4-6 18 Housing Values: Huntington Beach and Surrounding 4-13 Areas, 1980 , 19 Single-Family Residential Sales: 1988 4-14 L 20 . Single-Family Residential Sales: Downtown/Old Town 4-15 c � 4 rLIST OF TABLES (Contf•nued) I Table P:a4e 21 Single-Family Residential Sales: Harbor/Bolsa Chica. 4.-16 22' Single-Family Residential Sales: North Central 4-17' s 23 Single-Family Residential Sal.es;:_. Southeast 4-18-. 24 ` Condominium Sales Activity: 1988. 4:-1.9 25 . Condominium Sales: Downtown/Old Town ' 4'-20 26 Condominium Sales: Harbor/Bolsa Chic! _ . 4-21 .27 Condominium Sales: North Central 4= 2-2., 28 Condominium Sales: Southeast .4=2-3. N 29 Monthly Rents: Huntington Beach. and Surrounding 4-24 Areas, 1980 30 Monthly Rental Rates: 1988- 4--25 r: 31 Monthly Rental Rates, by Subarea: 1988 4,=26. 31A- 1989-1994 Household Needs by Income Group 32 Affordable Housi,ng. Projects .within Three: Miles of .4 28.. Coastal Zone 33 , 1 Employment Trends: 1.980_ & 1-984 -5;2- 34 Res idential .Development, Gapacity of; Land: Use Phan 6=4- 35 Summary of Development Fees for Typical Low Density. 6--6 Residential Project , 36 Summary of Development Fees for Typical High, Density -6-7" Residential Project 37 Development Processing Time i.n Hunt-i ngto,n ..Bea.G.h and- 6;,8 Surrounding Communities 38 Vacant Lands Suitable for• Residenti.al Development: 1988 39 Residential Recycling Activity 40 Potential Residential Development Summary 1'-,11' a , LIST OF FIGURES Figure P—L 1 Regional Location Map 1-3 2 Population Growth: 1980 - 1988 2-4 3 Race and Ethnicity: 1988 2-8 r 4 Median Household Income: 1988 3-6 5 - Housing Tenure: 1988 4-4 6- Community and Neighborhood Enhancement Areas 4-7 7 Median Single-Family Residential Sales Prices:- 1988 4-15. 1 8 Median Condominium Sales Prices: 1988 4-20. 1 9 Median Rental Rates: 1988 4-25. 1 10 Previously Constrained Lands Suitable for Residential Development 7-2 11 Bolsa Chica Residential Development Plan 7-9 i i i f+ _ Ab I 1 0 `INTRO DUCT 1.0N 1:1., Purpose of Report `Huntington Beach is a diverse commun-i'ty.-with, .households of varied } socio-economic, racial and cultural 'backgrounds.. - Providing adequate and affordable housing opportunities for' its diverse resident population is both a concern and an obligation of the City. . 'i;de ..Housing Element is an official municipal: response' to :the! need. to'provi(je housing 'for-al'1 economic segments of the community. This Technical Data Report provides an over--view of the population, socio-ergonomic, and' housing characteri.sti.cs of the City -of-Huntington Beach. - This information will help to define the City's_ current and a projected housing needs, and provide'Idirection in developing the •City's Housing Element goals, policies and programs. It has been prepared with the assistance of City staff, Tand will be revi.eWed by a Housing Committee comprised of several City Council members and, City residents. The final Technical Data Report will serve-as t-he basis for developing the..C'i.ty's x Housing Element which will set forth a- comprehensive housing strategy for the City of Huntington Beach. - This ':report -will --serve' as�a technical appendix to' the Housing Element, and will' be 'required '.-to': be- updated at least every five years along with the" E:lemeht. M 1.2 Sources of' Information Several .sources. of information provided- i ns.i,ghts' i nto retentf_•demograph-i c and housing trends .that have taken--place-w !thin, the, City. . .fl`ata`from•:the 1,980 Census and from the' City°'s` k98k'Housing Elementy.were'used-gas-`•the-�ba-se year for comparison for many of ahe'=tibles in' :this-report. ,;Current housing unit data was- obta-ined'.from the': State Department*.of Finahce,' .SCAG, and from City records. and reports. .Demograph.ic11•and hou§ehaldAhformW,on, e.g. current ethnic' mix, household income,:. have- primarily- :been:.obt*Ti ned from estimates.'prepared by Urban.'Dec.is.i:on- Sy'stems, '•,I.nc. :(UDS) .,-"UDS annually prepares, demograph-ic/householdupdttes-'bas,ed-bn'd'ata..s"uppl�i•ed by Federal , state,' county and- city sources. In order.- to ensure cons:i'stancy with population -and housing:-unit` totals obtained` from':the.>Dep:artment,of Finance, slight adjustments' were-made. to the UDS!data'. to• r.,eflect these totals. In addition to providing- household information on',the' City-wide level , .!the City has been divided into' four geographic-. subareas to- allow- comparis°on among different areas in `Huntington+' Beach. These� subareas- are- comprised- of Old town/Down town, Harbor/BbIsa Chica," North Central and• Sout-heart Huntington Beach, and are consistent w:ith :the Community Analysis.:,a-yeas defined by the Orange County-Forecast` Analysis- Center. i - '1-1 1 .3 Huntington Beach Setting The City of Huntington Beach is an older suburban community situated in the northern coastal section of Orange County. The City is bordered by the unincorporated territory of Seal Beach to the northwest, the cities of Westminister and Fountain Valley to the north, the City of Costa Mesa to the east, and the Pacific Ocean to the south. The City's regional location is depicted in Figure 1 . The dominant physical characteristic of the City are its miles of coastline, including the Bolsa; Chica and Huntington Beach- State Parks. Other points of interest include Bolsa Chica Ecological Reserve, Huntington Harbor, and the natural waterways of Anaheim Bay Landing. Existing develoment ,pressures in Huntington Beach can be attributed to its coastal locale and its central location within the Los Angeles - San Diego urbanizing corridor. t 1 -2 , i i IYWV so ' Los r•�. Angeles o Z017a Fw J py �• Whittier '-1 A. Los Angeles Co,.:,fy •_ _ �9%e� 4 r S.o Orange County:. s _ c X°6; co LL 0 HWY 91 . Artesia J' - .r• A l Anaheim 3 'a Orange Long Beach { HWY 22 �4os m Santa s Ana 0 A HUNTINGTON., BEACH Newport Beach Laguna Bead 11 S 1� North �scale in miles FIGURE 'i REGIONAL_ LOCATION MAP 1 , 1{[ P j 2.0 POPULATION CHARACTERISTICS AND TRENDS 2. 1 Population Growth The entire Southern California region, including Orange County, is among the fastest growing in the nation. The older, well -established metropolitan areas of Los Angeles and central Orange County have been extending outward to the counties to the north and east. The southern and eastern portions of Orange County, western San 6-rnardino and Riverside Counties, and southern Ventura County are the mos'. recent areas to be developed around the older urban core of Los Angele.- .. Southern California, which includes Imperial , Orange, San Diego, Riverside, San Bernardino, Los Angeles, Ventura, and Santa Barbara Counties- grew from 11,668,707 persons in 1970. to 13,750,217 persons in 1980, representing a population gain of over 17 percent (see Table 1) . During this same ten-year period, Orange County's population increased from 1,420,386 persons in 1970 to 1,932,708 persons in 1980, a gain of 512,322 persons or 36 percent. Growth during the 1980s has been rapid as well . Between 1980 and 1988, the population of the eight county area grew by an additional 2,651,577 persons (19%) . Orange County increased in population by 306,013 persons between 1980 and 1988, a 15.8 percent increase. i TABLE 1 REGIONAL POPULATION GROWTH: 1970-1988 POPULATION - CHANGE 1970 - 1988 COUNTY 1970 1980 1988 No. Imperial 74,492 92,110 111, 105 36,613 + 49.2 Los Angeles 7,032,075 71477,503 8,555,937 1,5 3,862 + 21 .7 Orange 1 ,420,386 1,932,768 2,238,721 818,335 + 57.6 Riverside 459,074 663, 166 946,074 487,000 +106. 1 San Bernardino 684,072 895,016 1,239,967 5551,895 + 81 .3 San Diego -1,357,854 1,861,846 2,327,684 969,830 + 71 .4 Santa Barbara 264,324 298,694 345,003 80,679 + 30.5 Ventura 376,430 529, 174 637,407 260,977 + .69.3 Source: U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report; California Dept. of Finance, Controlled Population Fstimates for 1-1-88. 2- 1 The 1988 population of Huntington Beach is estitiated by the California Department of. Finance to be 187,740 persons, :making Huntington Beach the third-largest city 'in Orange County behind only Anaheim and, Santaz Ana. As illustrated in Table 2, Huntington Beach's population grew by approk.imate.ly 10% between 1980 and 1.988;,. representing an average annual growth rate of 1 .25%. This population growth. ,rate is compa-cable with most jurisdictions surrounding Huntington Beach.-. The. population growth rate in Orange, County was somewhat higher than in Huntington Beach) -reflecting the fact that the City is 'more` built out than many ao-eas of the: .County.. TABLE 2 POPUI:ATION TRENDS: HUNTINGTOW BEACH AND SURROUNDING AREAS- 1980-1-988 Jurisdiction — 1980(a) .1988(b) % Increase Anaheim 219,311 243,021. 10-.8 Costa Mesa 82,562 -91 ,891 11 .3 Fountain Valley 55',080 55,702 1 . 1' Huntington Beach 170,505 1..87,740 10.1. Newport Beach 62,556 69,597 11 .3 Santa Ana 203,713 231,460 13-.6, Westminster: 71 , 133 73.,763 3.7_ Orange County SMSA 1,932,709 2,238,721 15.8. Source: (a) U,.S. Department .of Commerce, Bureau- of the-. Census, 1980' Census Report. (b) California Department of Finance, Controlled Popul'at.ion, Estimates for 1-1-88. POPULATION TRENDS_ HUNTINGTON=BEA'CH AND SURROUNDING AREAS 1980-148.8• 20% j 1 t fj tl�Ni�u+�;2;2 V #i�ril�ili{!�� e1�lii{.tI l;f,+j C ';••.; :.r . I'li{�I`I�p��t:tl; ;1f2',"�{�ill V {i 1.11 �i I I rf .I!jl.{S#i•!;� ;{;+f(�t?,isiji� �� . Q, �` � ,� s, S?i '!t'f',j�• , I)({''k�'�� �{{3�1•'•'tli!#i i ti�'`t �{ {t ti?� r t,�!t{!!!{ji 33!i+'i•�ii?(,{{ �,. •',d i l+,� 'i��. .{(Irl{,:'•:�i•t' �til F.i II?:. r + i!?I II r �fi;iji�� °�j ';I�:.!��iji!iit? :i .:.;; ;;! {i;•`.I•,1,�{j{il; 1• ij i +I - :,;It{,, i t:?t'ir.=rii;:; i r'i:ii{;i;`':• ••. ? i{ . ' =2. ;I'., ?1': �'.i.::#?0'Nli H.: • {`!nit!?:!i•�+ !Eh%i;it 7{i. -i,:+i{!:i;;;�r .�:i;{{;i;;;i:; :;t•:::::!i:;.,i •.,., ••+ i :•i-t•::::::.t•. ?#It�.•,•.•.i? .?:isiiili�i;!: { �� Mtheim Costa Fountain .Hntnptn Newport- Santa Wstmstr. Omnge Co. Mesa yaiiey Beach Beach Ana 2-2 1 Among the City's four subareas, the Downtown/Old Town neighborhood experienced the greatest amount of growth between 1980 and 1988, { increasing in population by more than 23 percent (see Figure 2) . .The. Harbor/Bolsa Chica subarea had the second highest growth rate, exhibiting . a 16 percent increase in its resident population. The Southeast (8.3%) and North Central (3.1%) subareas grew by the smallest margin of increase, reflecting limited availability of developable land in these areas. Table 3 projects population within Huntington. Beach through the year 2010. According to estimates prepared by the Orange County Forecast Analysis Center, the City's population is expected to grow 13.9 percent between 1988 and 2010, representing an average annual growth rate (.63%) significantly below that experienced during the 1980-1988 period (1 .25%) . This growth would add 26, 156-new residents to Huntington Beach, for a 2010 population of nearly 213,900. Factors which may influence future growth in Huntington Beach include growth controls, the availability of land suitable for residential development, and the price of housing. TABLE 3 CITY OF HUNTINGTON BEACH PROJECTED POPULATION GROWTH: 1988-2010 Change 1,928-2010 1988 (a) 1995(b) 2O40(b) 2010(b) No. % Total Population 187,740 199.,,577 203,291 213,896 26,:156 13.9 In Households 187,162 198,963 ',202,665 213,237 26,075 13.9 In Group Quarters 578 614 626 659 81 14.0 Source: (a) Calif. Dept. of Finance, Controlled Po'�uhatjon Estimates for 1-1-88. b) Orange County Forecast._ Analysis Center, OCP-88 Modified, May 2, 1989. Households and "group quarters are estimates based.,.... on 1988 DOF proportions for households and group quarters. 2.2 Age Composition Table 4 illustrates the age distribution of Huntington Beach's residents in 1980 as reported by the census and in January 1988 as estimated by Urban Decision Systems. The median age in Huntington Beach in 1980 was 28.9, as compared to 29.5 in the County, 29.9 in California, and 30.0 in the United States. According to Urban Decision Systems, the median age in Huntington Beach had increased to 31.9 in 1988. This increase in the median age reflects an actual decline in the number "of children under 20 years of age in Huntington Beach, indicating a decline in the influx of families with children. Considered alongside the limited growth in the i 2-3 1980. 59,151 ••. r ;\ 1988: 61,027INCREASE: 3.1% ••\ �` •�` a .\ 'DF Ufa •• • NORTH % ••'�•, `� \ , CENTRAL \ \ /DOWN- TOWN/ - r ►be `larA OLD- SOUTHEAST �+ -\ TOWN 1980: 58,568 0ds f�`+• HARBOR./ / ,\� ,�-`•:\ 1980: 29,312 \% - . •. \ 1988: 63,418' BOLSA CHICA •i 1988: 36,073� +s� ' •<•, % INCREASE: 8.3% a �• wr .......■.■■■■..■ ■■.sa �•i� % INCREASE: 23% Huminpo�1980: 23474 "a`bO •.•+ •� \ ' ¢dson e: , ,. • Bolsa Chica Genera ft Y �• ■ (1988. 27,222 +� sea Curt \ T' \ Plant ►A ' � •+ Country Club • e s % INCREASE: 16% • P r e e r v e P�CrK'le'i.►�■.rrrrwpwra w.a.. _ .+ `\ - �" .r.� • _ww.�=.'�.c_- ............... ■r.rww■............■�•+• COAST }OG1'ONA f'_�� •r_'=..�'�- • ' 1r� P A C F I C O C E A N 3634 �C K North scale In feet — FIGURE 2 POPULATION GROWTH:1980-1988 ' TABLE 4 CITY OF HUNTINGTON BEACH AGE CHARACTERISTICS OF POPULATION: 1980 & 1988 1980(a) 1988 b # of % of # of % of Age Range Persons Population Persons Population 0-5 13,024 7.6 13,.z,17 7.2 6-13 21 ,341 12.5 19,337 10.3 14-17 13,074 7.7 11 ,828 6.3 18-20 10,237 6.0 9,387 5.0 21-24 ' 14,550 8.5 14,456 7.7 25-34 32,910 19.3 36,603 19.5 35--44 24,724 14.5 34,356 18.3 45-54 17,808 10.4 20,276 10.8 55-64 12,717 7.5 13,705 7.3 b 65+ 10, 120 5.9 14,268 7.6 i TOTAL 170,505 100.0 187.740 100.0 MALE 84,634 49.6 92,369 49.2 FEMALE 85,871 50.4 95,371 50.8 Median Age 28.9 31 .9 Source: (a) U.S. Department of Commerce, Bureau of Census, 1980 Census Report. (b) Urban Decision Systems, Demographic Trends; 1980-88-93. CITY OF HUNTINGTON BEACH: AGE CHARACTERISTICS OF POPULATION 20% 01980 } 1988 i c iii3 l o% $F•i C p �;tiii u i:i i1 .iti •,, ?ii?;: t�! I Siip :;<a. .:�? a!I ! ill; !n•: '�r 3 ie: i:'eir iii ' ii`�it ifi:3i •-iii! it.ii;. iS''3 � Ht.. '?:ii1i t..1, '�:i �;,i1 t,t•� , ';�i..'! i' ••# ifi et iii?i? 'i'i? 0% '0'i• i i ? ?i r3sii c,t 0-5 6-13 14-11 18-20 21-24 25-34 35-44 45-54 55-64 65+ Age Groupings 2..5 i .C.ity's•.young adult population (age 25-34) , these factors -support the finding that the City's housing stock is inaccessible to many, first--tame homebuyers. The mid-adult age cohort '(age 35-44') experienced}the. greatest increase in population over .the 1980-88 period the higher income :of this gr..oup. more able to afford the City's costly housing market. The City's elderly population (those 65 and over) .i:ncreased from •5.9 percent of the population .in 1980 to 7.6 in 1988, representing an increase •o:f over 4.,000 Pers.on's. Nonetheless, this is still below both he County's .(8.3%) ,-and State's (9.0%) proportion of elderly i-n 1980. Tht. proportion of elide:rly persons in Huntington Beach can be •expected to continue to increase as those persons between the age of 35 and 64 (over one-third of the population) grow older, consistent .with nationwide trends of a large aging population. 2.3 Race and Ethnicity Table 5 presents the race and ethnic make-up of Huntington Beach in 11980 as reported by the census and in 1988 as estimated by Urban Decision Systems. As this table reveals, tthe majority of :Huntington Beach's population is White and comprised 90.4 percent of the -City's 1980 population, contrasting to 86.4 percent ,White.s County-wide. The proportion of White persons had decreased slightly to 88..6% in 1988, reflecting an influx of other ethnic :groups into the community. The second largest ethnic group in the City is .p.ersons of Spanish/•Hts.panic origin, representing eight ,percent of the City's '1988 ;population.; this is substantially below the County-wide ,pr.oporti_on of 1-4..8 percent i.n 1980. Asian/Pacific Islanders comprise 7..7 percent +of the City's popul.at i:on,, reflecting a significant increase over 1980; the County-.wide ,p.ro.part:i-on of. Asian/Pacific Islanders was 4.5 percent i-n 1,980. Blacks,, ,American Indians, and "Other" ethnic groups are the I east 7represented -groups in Huntington Beach., each comprising just over .one percent of the 'City's .19,88 population. TABLE 5 CITY OF .HUNTI,NGTON BEACH ETHNIC COMPOSITION: 1980 & 198,8 1980(a) 1988(b:) % .Race and Ethnicity Po ulation Total Po ulation Total White 154,156 90.4 166,338 88.6 Black 1 ,218 .7 2,065 Ll Amer. Indian 1 ,204 .7 2,065 1 . 1 Asian/Pacific Islander 8,4.53 5.0 14,456 7_7. Other 5,474 3.2 2,816 1 .5 Total 170,505 100.0 187,740 100..0 Spanish/fl-ispanic Origin 13,427 7.9 15,019 8.0 1 Source: (a) U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report. ! (b) Urban Decisions Systems, Demographic Trends: 1980-88-93. 2-6 w The four geographic subareas in the City evidence some differences in racial composition as illustrated in Figure 3. The Harbor/Bolsa Chica and Downtown/Old Town areas are the least racially diverse, White persons comprising over 91 percent of their resident population. North Central Huntington Beach, on the other hand, exhibits , the highest concentration of Sppanish/Hispanic (10%) and Asian/Pacific Islander (9.9%) populations in the City. The resident population in Southeast Huntington Beach generally parallels the ethnic make-up of the City as a wl,,,le. f f 2.7 s } 8f � 9, O,? � ii�. t• � WHITES: 52,279 (85.6%) BLACKS: 920 (1.5%) '� �, + �• AMER. iNDIAN: 859 (1.4%) •� / ii\ NORTH / ASIAN: 6,050 (9.9%)� �`�� /� •� CENTRAL - •• OTHER: 919 (1.5%) �tf SPANISH/HISPANIC: 6,103 (10%) �y2``/ �\ �.OWN- TOWN/ Meadorlark OLD- SOUTHEAST /�•, \ Akp°l \ \ TOWN WHITES: 56,252 (88,7%) d� BLACKS: 634 (1.0%) J, :••• HARBOR/ - �>•\ �\ AMER. INDIAN: 571 (.9%) • WHITES: 24,772 (91%) ; •, WHITES: 33.028 (91.6%) \ ASIAN: 5,073 (8.0%) /. BOLSA CHICA a / ,•,. _ BLACKS: 191 (.7%) ..�. �# BLACKS:428 (1.2%) OTHER: 888 (1.4%) /• ttuntu}�ton Iwy AMER. INDIAN: 163 (.6%) i t% ��a AMER. INDIAN: 390 (1.1%) ` SPANISH/HISPANIC: 4,186 (6.6%) /:• Harbou, 1. I!i�- ..•.••. Edon Companyj'SS<ASLW. 1 ( fl"qASIAN: 1,851 (6.8%)jI473 (41X) OTHER: 245 (.9%' ��• '•. Country Club OTHER: 754 (2.1%) • SPANISH/HISPANK: 1,5423 (5.6%)If, 5PANISH/HISPANK: 3,210 (8.9%0 •" "" :� ■ 4r �... ,.. .... y . -_'��' ``�..s.......R.I.=�..=—\..i, COAST -�-- - P A C F i C O C E A N 0 3636 (CfX11 K North kate t--9 FIGURE 3 RACE AND ETHNICITY:1988 l 3.0 HOUSEHOLD CHARACTERISTICS The characteristics of the population provide an essential component toward the understanding of growth and change. in a community. In addition, information collected on the household level ,provides a good base for the analysis of a community's housing needs. The Bureau of the Census defines a household as all persons who occupy a housing unit, which may include single persons living alone, famii :u- related through marriage or blood, and unrelated individuals living together. Persons living in retirement or convalescent homes, dormitories, or ether group living situations are not considered households. 3. 1 Household Composition In 1980;' there were a total of 61, 126 households in the City of Huntington Beach. According to the Department of Finance, the City had grown to ` 68,395 households in 1988, representing an 11.9 percent increase during the eight year period. As presented in Table 6, families represented the City' s predominant household type in 1980 (72%) , equivalent to the, County-wide proportion of family households. Single-person households represented the second largest household group in Huntington Beach, comprising 19 percent of all households. An estimated 9 percent of the City's households fell within the "other" category, representing individuals 'wh, o share a housing unit and are not related by blood or farriage. Based on 1988 household estimates by Urban Decision Systems, the proportion of family households in Huntington Beach has decreased from 72 to 68 percent of total households. This decline in the proportion .of family households could partially be reflective.of the increased number and proportion of renter households in the City. Single-person households on the other hand have increased in relative magnitude since 1980 and currently comprise an estimated 23 percent of the City's total households . Finally, current estimates indicate a relatively constant proportion of non-related individuals living together, "other" households comprising 9 percent of the total . TABLE 6 CITY OF HUNTINGTON BEACH HOUSEHOLD TYPE: 1980 $ 1988 1980 1988 No. Households % of Total No. Households % of Total Families 43,822 72% 46,388 68% Singles 11 ,584 19% 15,854 23% Other 5,720 9% 6, 153 9% Total 61 , 126 68,395 Source:'U.S. Dept. o Commerce, Bureau of the Census, 1980 Census Report; California Dept. of Finance Controlled Population Estimates for 1 -1-88; Urban Decision Systems, Demographic Trends: 1980-88-93 . 3-1 3.2 Household Size Household size is an important indicator identifying sources of population growth as well as overcrowding in individual housing units. A city's average household size will increase over time if there is a trend towards larger families. In communities where the population is aging, the average household size may actually decline. Average household size in Huntington Beach was 'C.38 persons per .unit in 1980 and had decreased to 2.74. in 1988 (see Table-.•7) . Projections to 1993 depict a continued decrease in' the City's average household size to 2.67 persons per unit. Several factors occurring in Huntington Beach are influencing this trend. The proportional increase in renter-occupied housing,which occurred between 1980-1-988 contributes to smaller households, as does the relative decrease in family households. Orange County's household size is comparable to Huntington Beach's, and reflects the same trend towards' decreasing household site. TABLE 7 CITY OF HUNTINGTOR BEACH HOUSEHOLD SIZE: 19K-1993 1980(a) 1988(b) 1993(c) Huntington Beach 2.78 2.74 2.67 Orange County 2.78 2.75 Source: (a) U.S. Dept. of.Commerce, Bureau 'of the Census, 1980 Census Report. (b) Calif. Dept. of Finance Controlled Population Estimates for 1.-1-88. (c) Urban Decisions Systems, Demo,graphc Trends: 1980-88-93. 3.3 Overcrowding The Census defines overcrowded households as units with greater than 1 .01 persons per room, excluding bathrooms, kitchens, hallways, and porches. Ovecrowding reflects the inability of households to buy or rent housing which provides reasonable privacy for their residents. According to the 1980 Census, the. inc.idence of overcrowding in Huntington Beach'was minimal , with only 3.3 percent of all housing units defined as overcrowded, compared with 5.6 percent County-wide. The census also reveals the prevalence of overcrowding among renter households, with 74 percent of the City's overcrowded households renter-occupied. 3-2 i 3.4 Household Income j An important factor with respect to housing affordability is household income. While upper income households have more discretionary income to spend on housing, low and moderate income households are more limited in the range of housing they can afford. The presence of a large number of low and moderate income households in a community like Huntington Beach where housing costs are high is indicative of d high level of housing overpayment. Huntington Beach's median household income in 1979 wN)$24,015, whereas median family income was slightly higher at $26,985: As illustrated in Table 8, household and family incomes in Huntington Beach approximate those in the County as a whole, with household incomes 6 percent higher than the County and family incomes just 4 percent higher. This table also reveals the wide variation in incomes among nearby jurisdictions. For example, the City of Fountain Valley had a median household income 31 percent higher than the County median, while the City of Santa Ana's median household income was 18 percent lower than the median for the County. Huntington Beach's 1979 household income is greater than that in the cities of Anaheim, Costa Mesa, Santa Ana and Westminster, and is surpassed by the nearby cities of Fountain Valley and Newport Beach. TABLE 8 MEDIAN HOUSEHOLD ANQ,,r,FAMILYn INCOME: HUNTINGTON BEACH AND SURROUND-LNG AREAS 1979 MEDIAN PERCENT ' ""MEDIAN PERCENT HOUSEHOLD ABOVE/BELOW FAMILY ABOVE/BELOW JURISDICTION INCOME COUNTY MEDIAN INCOME COUNTY MEDIAN Anaheim $20,026 -11.2% $23, 112 -10.8% Costa Mesa $19,309 -14.4 $22,485 -13.2% Fountain Valley $29,590 +31.2% $31,051 +19.8% Huntington Beach $24,015 + 6.5% $26,985 +4.1% Newport Beach $27,516 +22.0% $36,447 +40.6% Santa Ana $18,362 -18.6% $20,193 -22.1% Westminster $22,930 + 1 .7% $25,050 3.3% i Orange County SMSA $22,557 - $25,918 - Source: U.S. Dept. of Comme ce, Bureau of Census, 1980 Census Report (aj - F�amilyYhouseholdsware defined by the Census as households containing two or more persons related by blood, marriage, or adoption. Family household income is generally larger than household income because family households tend to have more members and, therefore, more potential wage earners than non-family households. v 3-3 1 , The Department of Housing 'and Urban Development. and the State Department of .,Housing and Community, Development have developed the following income -.� ,categories and their definitions: ' ° .Very Low Income - less. than 54 percent of 'the regional (County.) .median. } Low Income - between 51 and 80 percent of the- County median. I Moderate Income - between 81 and_ 120 perceii.. of the County median. ° Upper Income - greater than 120 percent. of 'the County median. i The City's 1979 income distribution can be divided into these-- four income categories through interpolation, as presented in Table 9. In addition, F estimates of 1988 household income in Huntington 'Beach have been obtained from Urban Decision Systems, and have been grouped into -the- four j income. categories based on a 1988 median household income of $44,400, for °. Orange County. Comparing the- City's income distributions in these two years provides insight into the changing- income characteristics. of the City's-population. Huntington Beach has experienced both a proportional. and a ,n.umenic increase in households classified as Very Low,. Low .and Moderate Income during the 1979-1988 period. Very Low Income households have- experienced the greatest increase of any of income group, with 24.5 percent- of-the City's 1988 households earning less than half the county:median: i-ncome,, as compared with 18 percent in 1979. Low -Income households have--experienced. a more modest increase from 16.2 to 18.7' percent of-.total households,::as. have Moderate Income households which increased. from. 22�7`.to;.23 3::percent.. of total households. Finally, the.City;-.h.as. experienced a s1gh-ff.:icant decrease in Upper Income households- from-42.. 1.-to 33.'5 percent of total households, and an actual' numeric -reduction-. of3,373 households. Explaining these significant changes; in the City's income. distribution .is the fact that Orange County median household- income increased97•-percent during the 1979-1988 period from. $22',557 _to. $44,400.. Ho.useholdiincomes -in Huntington Beach experienced a somewhat lesser .increase 'from-$24,.015 to t40,375, or 68 percent, during the same. time--period. Household Income. by Geographic Subarea Figure 4 presents estimated 1988 household income for- each -of- the. four geographic subareas evaluated. Downtown/Old Town exhibited the• lowest incomes in the, City, with- a median household income, of $31:,024�, substantially below the City-wide median of $40,375. Incomes- i-n North i Central Huntington Beach ($40;222 median) were -comparable to-t•ho.se City-wide. Harbor/Bolsa Chica and Southeast Hunt ington. Beach_e'v.idenced the highest incomes in the. City, with 1988. medi-an household. incomes of $44,569 and -$45,900 respetttvely.. i I 3-4- 1 a . P1 . TABLE 9 CITY OF HUNTINGTON BEACH INCOME GROUPS: 1979 & 1988 1979 1988 ✓ Number of Proportion Number of Proportion of Income Group Households of Households Households Households Very Low 10,980 18.0% 15,778 24.5% (Less than 50% County median income) Low Income 9,850 16.2% 12,753 18.7% { (50% - 80% County median income) Moderate Income 13,835 22.7% 15,939 23.3% (80-120% County median income) Upper Income 26,298 43.1% 22,925 33.5% (Greater than 120% County median income) TOTAL 60,963 100% 68,395 100.0% 1979 median County household income: $22,557 19 8 median County household income: $44,400 Source: U.S. Dept. of Commerce, Bureau. of Census, 1980 Census Report; Urban Decision Systems, Income: 1980-88-93; Cotton/Seland/Associates, Inc. CITY OF HUNTINGTON BEACH INCOME GROUP$: 1979 AND 1988 50% 0 1979 4 0% {` ■ 1988 30%- =3i•`jiox- i==• 20X- 1-0 Very Low Low Moderate Upper Income Group j 3-5 �,\ /�^�\'�\ / ••�• /r-- MEDIAN HOUSEHOLD INCO,&.IE �`'.�,�/�•�✓*��u�..��\�•;.= .;C•% � � j CITY-WIDE. $40,375 Jt• $40,222 ♦'�.*\ �\ �• B°� •' / • j .FORTH � �:\ •o CENTRAL •,\ / �� r E F • DO W N­ `�`' s� � •i TOWN/ MeaCOWN�Y \ OLD- SOUTHEAST /♦%� "`""' "\ •\ TOWN /:•/ HARBOR/ \ -�;� $31,024 ,\ $45 900 • `•� /•.• BOLSA CHICA S44,569 ♦,<� ° \ • /♦ Ir•♦�■■■-............. ■■s�/ .•.`` tit. .\ ��P \•� ♦♦ Hwtin=ton ♦. i•, Goo- 4 •\ �• Haibow •• t� �\ • .•• i Edison Company I �.• 8olsa C h i c a CAner&tinSea Cliff a c.; `•' �. `. ♦♦} Preseive • Country Club =\� .•• ��. Ay �........♦■■■ COAST it <k P A C F I C O C E A N 0 3636 K North C scale In eei FIGURE 4 MEDIAN HOUSEHOLD INCO.+AE:1988 Table 10 presents a breakdown of incomes into Lit^ four income groups for each of the geographic subareas. This data indicates that Downtown/Old Town contains the highest proportion of Very Low Incorie households, an estimated 35 percent of the total households in this area classified as Very Low Income. Nearly one-quarter of the households in North Central Huntington Beach are Very Low Income, with Southeast Huntington Beach and Harbor/Bolsa Chica each containing approximately 20 percent Very Low Income households . Consistent with its high -c.ncentration of Very Low Income households, Downtown/Old Town contains ti,e highest proportion (22%) of Low Income households in the City. North Central , Harbor/Bolsa Chica, and Southeast Huntington Beach contain 19, 18, and i6 percent Low Income households respectively. This income data indicates that, while concentrations of lower income households are located in Downtown/Old Town and to a lesser degree in North Central Huntington Beach, lower income households are located throughout the City. 3.5 Housing Affordability State and Federal standards for housing overpayment are based on an income-to-housing cost ratio of 30 percent and above. Households paying greater than this amount have less income left over for other necessities such as food, clothing, utilities and health care. It is recognized, however, that Upper Income households are generally capable of paying a larger proportion of their income for housing, and therefore estimates of housing overpayment generally focus on lower income groups. The Regional Housing Needs Assessment (RHNA) prepared by SC identifies housing overpayment for the City's lower income households based on data from the 1980 census. According to the RHNA,- an estimated 10,565 (or 45 percent) of Huntington Beach's lower income households were paying more than 30 percent of their income on rent or mortgage payments as of January 1 , 1988. Of these overpayers, 5,961 are classified as Very Low Income and 4,604 are Low Income. Housing Overpayment by Tenure The distinction between renter and owner housing overpayment is important because, while homeowners may over-extend themselves financially to afford the option of home purchase, the owner always maintains the option of selling the home. Renters, on the other hand, are limited to the rental market, and are generally required to pay the rent established in that market. The Regional Housing Needs Assessment has broken down housing overpayment by housing tenure, as presented in Table 11 . Of the total 10,565 lower income households identified as overpayers, 8,638 were renter households and only 1,927 were owner households. This discrepancy is largely reflective of the tendency of renter households to have lower incomes than owner households. (a) Lower income households are defined as households whose total gross income is less than 80 percent of the County median. "Lower Income" encompasses both Very Low and Low Income groups. 3-7 i TABLE 10 CITY OF. HUNTI:NGTON BEACH 1988 INCOME DISTRIBUTION BY SUBAREA Downtown/ Harbor/ North Income_ Croup _ Old Town Southeast !_ 8olsa Chica Central ___ Very Low Income 35% 19% 1% 24% .,(Less than '$22,200) Low- Income 22% 16% 16% 19% ($22,200 - $35, 519) Moderate Income 20% 25% 21% 26% ($35, 520 - $53, 279) Upper Income 23% 40% 40% 31% (S53,280 and above) i TOTAL 100% 100% 100% 100% Source: Urban Decision Systems, Income: 1980-88-93; Cotton/Beland/Associates, Inc. { I CITY OF HUNTING TON BEACH.: 1988 INCOME DISTA.1BUTION :BY SUBAREA 100% a c ® VERY LOW LOW 0 o _ _ MODERATE -- U.PP ER, OX D' wr>l owril S o ' h eas{" Haf'6�ort ' N ottyfi`C eh4al bid' B.olsai C hica S abarea 3-8 TABLE 11 CITY OF HUNTINGTON BEACH LOWER INCOME HOUSEHOLDS PAYING GREATER THAN 30% OF INCOME FOR SHELTER Household Very Low Low Income Total Tenure Income Owner 1 , 137 790 1 ,927 -Renter -- --- _ _ F324-------3.814-----...--- --- 8,638 _ lotal 5,961 4,604 10,565 Source : SCAG Regional Housing Needs Assessment, June 1988. 3.6 Special Needs Groups Certain segments of the populat"ior may .have a "mare difficult time finding decent, affordable housing due to sped 4.1;circumstances. In Huntington Beach, these "special needs" households include the elderly, handicapped persons, large families, female-headed households`, farmworkers, and the homeless. The number of special needs households and/or persons in Huntington Beach is summarized in Table 12. TABLE 12 CITY OF HUNTINGTON BEACH SUMMARY OF SPECIAL NEEDS GROUPS: 1988 Number of ' � %� of Total -- Needs Group H u e ld Pe ns Ho eh s Po ulation Elderly (65+) (a) 14,268 7.6 Handicapped (b) 1,444 2. 1 Large Families (c) 6,878 9.8 Female-headed Households (d) ,316 9.0 Farmworkers (e) 878 (1984) .6 Sources: (a) Urban Decisions Systems, Demographic Trends: 1980-88-93. Proportions of elderly applied to "Calif. Dept. of Finance 1988 population estimate. (b) City of Huntington Beach, Housing Assistance Plan, 1988-1991 . (c) Urban Decisions Systems, Demographic Trends: 1980-88-93. Proportions of large families applied to Calif. Dept. of Finance 1988 reported households. (d) Proportion of female-headed households in 1984 as reported by Huntington Beach Housing Element, applied to Calif. Dept . of Finance 1988 reported households. (e) City of Huntington Beach Housing Element, July 1984. 3-9 Elderl ,: The special needs of many elderly :households result from their ower, fixed incomes, physical disabilities, and dependence needs . An estimated 14,266 elderly (65 years and over) resided in Huntington Beach in. 1988, representing 7 .6 percent of the total population. The proportion of elderly can be expected to increase as those persons between the age of 35 and 64 grow older. Many elderly households. in the City. are of lower income, and of these the City' s 1988 Housing Assistance Plan* (HAP) estimates 1 ,226 are in need of rental assist�,,ce. Escalating housing costs, particularly in the rental market, seve► ely impact housing affordability for the elderly,, who are usually on. fixed incomes.. Housing ..needs of the elderly cart be addressed through the provision of smaller units , second units on lots with existing homes, shared living arrangements, congregate housing, and housing assistance programs. Handicapped: Physical handicaps can hinder access to housing units of traditional design as well as limit the ability to earn adequate income . Huntington Beach' s Housing Assistance Plan identifies 1 ,444 low and. moderate. income households that have at least one handicapped. person, representing approximately .8 percent of total households within the City in 1988. The City's handicapped can be classified according to 'the following household groups: City .of Huntington Beach Handicapped�Households Elderly. 86 Single, 425 non-elderly Small Family 749 Large Family 184 Total Households 1 ,444 Source: City of Huntington Beach, Housing Assistance Plan, 1988-1991 ' Housing opportunities for the handicapped can be maximized. through the provision of affordable, barrier free housing. Large Families: Large famili'es are identified as a group with special housing needs based on the limited availability of adequately sized, affordable housing units. Large families are often of lower income; frequently resulting in the overcrowding of smaller dwelling units and in turn accelerating unit deterioration. The demand for larger units in. t.he City can be expected to increase based on the City's growing ethnic population and the desire/need of many of these ethnic groups to cohabitate with extended families. Approximately 9.8 percent of the City' s 'households in 1988 had five or more members, translating to 6,.878 households . This represents a decrease from 1980 when large households i comprised 12 percent of the City's total households. The. City's Housing 3-10 3 1 Assistance Plan identifies 767 lower income Ia:,ge families in need of rental assistance, representing eight percent of total households needing rental subsidy. The housing needs of large households can be addressed through the provision of affordably priced larger housing units. Female-Headed Households: Female-headed households tend to have low incames,­to us -fi m ng-dousing availability for this group. In 1984, 9 percent of Huntington Beach' s households were �,eaded by a woman, as reported in the City' s Housing Element. Applyi,,g this percentage to the City's 1988 housing stock translates to an estim_ tad 6,316 female-headed households . The City's Housing Assistance Plan estimates that 4,268 female-headed households (67%) in Huntington Beach have dependent children under 18 years of age. Thus, providing housing opportunities for this group relates both to affordability and services related to the care of children. Farmworkers : The special housing needs of many farmworkers stem from their low wages and the insecure nature of their employment. Those persons working in the farming industry have been counted by the 1980 U.S. Census and are also included in the City's 1984 Housing Element. According to the Census, approximately one percent of the total labor force in Huntington Beach was employed in farming, forestry, or fishing . According to the City' s Housing Element, there were 878 persons employed as farmers residing in the City in 1984, or .6 percent of those persons acted 18 and over. Homeless: Throughout the country, homelessness has become an increasing problem_ Factors contributing to the rise in homeless include the general lack of housing affordable to low and moderate income persons, increases in the number of persons whose incomes fall below the poverty level , reductions in public subsidy to the poor, and the de-.institutionalization of the mentally ill . Based on estimates by the Orange County Homeless Issues Task Force, the County's homeless population consists of approximately 8,000 to 10,000 individuals, some of whom are located in Huntington Beach. As a beach community, the City attracts numerous individuals who congregate along the beach, under the pier, by the Santa Ana River bed, and in Central Park. The Episcopal Service Alliance (ESA) , an ecumenical organization in Huntington Beach which provides social services for homeless, reported, for February 1989 the number and types of homeless which sought their assistance. As the figures below reveal , the majority of homeless seeking assistance are couples with children (195) and lone females with children (152) . These totals, however, represent only a portion of the actual number of homeless in the City. ESA indicates that as referrals of the service continue to spread, the total number of homeless reported continues to increase every month. 3-11 City of Hunti!.ngton Beach Homeless Seeking Assistance Total Indi.vidual s Homeless with no shelter 17 Homeless in Motels 21 Homeless and Mentally I1.1 3 Homeless Families 24 Couples 12 Couples with children 195 Lone Females 16 Lone Females with children 152 Lone Males 37 Lone Males with children 4 Total 481 Source: Episcopal Service Alliance, February 1989 Project Self-Sufficiency f In attempts to curtail additional persons and families from becoming homeless, the City'-s Econoinic- Development Department runs "Project Self-Sufficiency" °(PSS) . The programs which first began in 1984 as a nationwide HUD demonstration project, is funded primarily through CDB:G Grants and private sector donations. As its name suggests, the program aims to make persons independent of -government subsidies and ;become self-sufficient. To Imeet this goal , PSS ;provi-des hous.rng ass:istanct in the form of Section 8 housing vouchers to low-income, single parents -who are either currently homeless or -at risk ofbecoming homeless. The program also matches the single `parent 'with the appropriate agencies i.n the community to receive needed assistance such as food, clothing, childcare and job 'training. 'In order to qualify for .the :voucher .program, f persons must reside or work in 'Huntington Beach or come f:r.om a 'homeless shelter. Seventy percent of all .persons •wh;o have p.ar'tici-pat>e.d in the program have been Huntington Beach residents., -with the -remai-mAng .3.0 percent referred from sponsored shelters. When PS'S is unable to provide services to those in need, the program refers these :persons to -othe.r social services in the surrounding area. 3-12 Area Social Service Providers ' As most homeless individuals migrate to available servfces,• social service agencies located outside the City also serve Huntington Beach homeless . Table. 13 presents a listing of agencies which prov-i-d"e social services in the immediate area of the City. The City provides funding; ($41,000 in 1988) to several of these agencies for homeless services . As evidenced by this inventory, only the. Episcopal Service Alii,:,,ce, Saints Simon and Jude Catholic Church are located in the City' s jurisdiction. A .new .shelter targeted at assisting the City's numerous adolescent " homeless is set to open later this year. The Huntington Youth Shelter will be located in a rehabilitated structure in Central Park, and will provide overnight accommodations and counseling to homeless and runaway youths . Maximum stay will be limited to two weeks, with the goal- of reunit.inci the youths with family members . Based on the relatively few existing emergency shelters in the Huntington Beach area and the number of homeless persons who reportedly cannot be accommodated by the existing social service providers, - there appears to be an unmet need for an additional emergency shelter in Huntington Beach. While the Huntington Beach Youth Shelter will provide assistance to the City' s .adolescent homeless, there will remain a significant unmet need- for homeless singles and families. Beyond- an emergency shelter, the homeless service agencies stated that the most immediate and important need is for increased. operational funds . The City can help address these identified needs by continuing to provide supplementary funding to existing social service providers, and by. encouraging the development of a shelter. In addition, by providing decent and affordable housing opportunities, the City can help to curtail additional persons and'-families from becoming homeless . 3-13 i a , TABLE 13 SOCIAL SERVICE AGENGIES WHICH PROVIDE SERVICES FOR THE HOMELESS IN THE HUNTINGTON BEACH AREA . . Name Location _ Description Project Self-Sufficiency, Provi: -s housing vouchers (58) . Huntington Beach Assistsw't th_ finding child-care, food, and :lothing. Accommodates residents or workers of Huntington Beach or persons coming from shelters . Episcopal Service Alliance, Provides lodging, food, clothing, Huntington Beach bus coupons, medical attention, t help with payment of utilities, and counseling. Accommodations available for men, women, families on first come basis. Sts. Simon and Jude Catholic Church, Provides food. Accommodates Huntington Beach families on emergency per night basis-, and only when church funds are available. Interval. House, Provides 30-45 day shelter service. Seal Beach and individual and group counseling to battered women and children. Salvation Army, Daytime Service provides food and Santa Ana housing referrals for families . - Nighttime Service provides shelter for men, women, and families for 3 nights, offered on an .emergency .first come basis. Shelter For Homeless, Provides room and board for 15-day Westminster probation period in which time all c boarders must find employment. If employment is verified, the stay- may extend up. to 120 days. Accommodations available for men only on a: first come- basis. ` i 3-14 i TABLE 13 SOCIAL SERVICE AGENGIES WHICH PROVIDE SERVICES FOR THE HOMELESS IN THE HUNTINGTON BEACH AREA (Continued) Name Location - - _- - -Description -- ----- - Orange Coast Interfaith Shelter, Accommodations available primarily Costa Mesa for couples, families, and single women witi-. children. Maximum 25-30 individuals. Shelter provided on an emergency per night basis. ! Service includes food, shower, and I laundry. Agency also offers two month program serving 12 families. Families required to save 80 percent of income during the time period. Counseling services offered in parenting, budgeting, and job referrals. Amparo Youth Shelter, Accommodates children between the Garden Grove ages of 11 -17. Two-week in-residence counseling program dealing with problems associated with family, school , drugs, and alcohol . Follow-up 4-6 week after-care program. Shelter provided for i children facing extreme homeless- II ness. Source: Cotton/Beland/Associates, Inc. 3-15 TABLE 13 SOCIAL SERVICE AGENGIES WHICH PROVIDE' SERVICES FOR THE HOMELESS IN THE HUNTINGTON 'REACH AREA Nime_Location Desc.r. 'ption _.._., Project Self-Sufficiency, Proviups housing vouchers (58) . Huntington Beach Assists ti.:;th finding childcare, food, ana 11 o.thing. Accommodates residents or workers of Huntington Beach..or persons coming from i shelters. i Episcopal Service Alliance, Provides lodging, food, clothinq, Huntington Beach bus coupons, medical attention, help with payment of utilities, and counseling. Accommodations available for men, women, families on first come basis. Sts. Simon and Jude Catholic Church, Provides food. Accommodates Huntington Beach families on emergency per night basis, and only�-when church- funds are a.vai]able. Interval House, Provides 30-45 day shelter, service Seal Beach and individ.ual-. ands gray.p--.counsf l ing to .battered women and- children. Salvation Army, Daytime Service. provides .food and Santa Ana housing referrals for.- families. Nighttime Service provides shelter for men, women,. and- families for 3 nights, offered,om are emergency first come basis. Shelter For Homeless, Provides room and board for 15 -day Westminster probation period. in which time all boarders must find-.employment. If employment is verified, the stay may extend. up to 120 days. Accommodations available. for men only- on a: first-_ come basis. f 3-14 4.0 HOUSING UNIT CHARACTERISTICS 4. 1 Housing Growth While residential development in many urbanized areas is beginning to slow due to the diminshing supply of available land;. Huntington Beach' s housing stock has continued to experience substantial growth' duri'ng the 1980s . In 1980, . Huntington Beach had a housing stock of.-h3,686 units. By January 1988. that ,total had risen to 70, 179, an increase0 of- more than 10%. Comparing the residential growth rates of Hunting<<,n Beach with nearby jurisdictions (see Table 14) , the City's 10.2% increase in housing units during the eight year period exceeded the 'housing growth experienced in these adjacent areas . However, the entire area's growth as a whole fell far short of the County's 15% increase between 1980 and 1988. { TABLE 14 HOUSING TRENDS: HUNTINGTON BEACH AND SURROUNDING AREA 1980-1988 - No. of Housing Units i Jurisdiction 1980 (a) 1988 (b) Increase Anaheim 82,725 89,873 8.6% Costa Mesa 34,023 37,282 9.6% Fountain Valley 16,758 17,548 4.7% Huntington Beach 63,686 .70,179 10.2% ' Newport Beach 31,397 . 34,336 9.4%. Santa Ana 67,180 72,.629 8:1% j Westminster 24,563 25,836 5.2% Orange County 721 ,514 829,406 15.0% Source: (a) U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report; (b) California Dept. of Finance, 'Controll.ed 1 t Population Estimates for 1-1-88 I 4 HOUSING TRENDS: HUNTINGTON BEACH AND SURROUNDING AREA 1980--1988 ION- I n�t 83L i iii::i.l•:, !•� 88 ! �::;:..i.::' •- Y �!':;!' !!i? i 1t! +.•i !4 1fjt?•i{ii!!,((' iiii:!{.;Ef:�,: II lif�i: :•h'!iii i ;�tift E!ly! ::.!!i;i!!e! i V ils�1 t i{I !li• ,,1: 'i ! ,tlii{�!il!' iii}li;ilEiiii - --._ _ i C !i;!1!!i:•1 i'1+I''!'i i,,fi�t! i i,! ;:!:;i�•'i; � C �ii!•!::,i,!,!+ ?:ilii�iti iii}�!+ •'°+??Ha E?ti!;::::::?:i ! j Y i!:!!ii:i:!•i! !i�°'iii EtF ,. '!i4�:i!i; ,,:,.:.:+ ::::::ii;ii?i? iai+�f+i ji iiid!}:'r::ii• y !li' A!it!�:+i.! !`�;j(,i i'•:fi! ii!?iiii?••;., :+i:•:,:;.liti i!i�'�lii!i i i!!i i}ilii,+i!( '+jlh! I!p}�i i }i!fi+��'t ii,lje!!i!f i - O q� Tit i�rai !P +!•t+ +' ilfi�ii!! fi?' t:i+ i' Y�DI i ii iii R• , 'i 1 ,+ h� !• }.!!��!jy� ,�J7 ,:1l+,a ii;;.ri!i?(r:� ?�{+:I,!y• ,.Fd:i•I I? }.,:i I NI Ai,klfr,• ,i ,+ :+:Iti?•:,,�i: •;?t;:};?.: :l!?!:'Ifi' �, i}!}!?1 J. !� {, je':••` :�;•i2: ei!i'•t!: {'. ti"'i '•!+: i +fi Ei•:!'� +'•.i,�.(' + +t l+ i �._ 'iii'!' +:: 29d ', l i;�iyi:F '!�• i : + !+�t+ !H! :Eik k i�1i�!E+�ii (I`i,i!t{'!i ( •f 'f H i '. i !i?iilfefiii Annhe4m Costa f!iilnteinH,ifn0tnNewpo• Sbnta Mtmatr. on,npeCo. Meal veiiey -Beach Beach Ann 4-1 the tenure distribution of a community's housing stoc:K (owner versus renter) influences several aspects of the local housing market. Residential mobility is influenced by tenure, ownership housing evidencing a much lower turnover rate than rental housing. Housing overpayment, while faced by many households regardless of tenure, is -far more prevalent among renters . Tenure preferences are primarily related to household income, composition, and age of the householder. For the past several decades, Huntington Beach hds been a predominantly owner-occupied community. However, the ratio of owner-occupied to renter-occupied units has been steadily declining since 1970, .at which time 70 percent of the City's households were owner-occupied. In 1980, owner-occupied housing comprised 58 percent of the City's households, dropping further to 53 percent in 1988. Several factors have contributed to this trend. As illustrated in Table 15, the City has experienced a larger proportional increase in the construction of multi -.family versus single- family units over the past decade. While a significant proportion of Ne multi - family housing stock is condominium units, a large number of thf,se are rented out . Other factors which explain the continued reduction of owner-occupied units in the City include rapidly escalating home values, higher interest rates and speculation, and the increased mobility of households . Among the City's four subareas, housing tenure varies significantly (refer to Figure 5) . The greatest concentration .of renter households is in the Downtown/Old Town subarea, with 68 percent of the units in this area occupied by renters. Its neighbor to the east, the Southeast subarea, has the largest owner-occupied population, totalling 15,245 (71%,) •owner households. Contributing to the Southeast's .predominantly owner-occupied : status is its large number of condominium units. The Harbor/B.nlsa Chica neighborhood most closely mirrors the City's 198.8 owner/renter ratio, with a mix of 57 percent to 43 percent. Housing tenure in North Central Huntington Beach is evenly split between owners and renters. 4.3 Age and Condition of Housing Stock 'fable 16 illustrates the period in which housing units were built in Huntington Beach. Reflective of the growth in Orange County, more than 80 percent of Huntington Beach's housing units have been constructed between 1960 and 1978. Housing development has maintained a steady pace into the 1980s, with an additional 9,011 dwelling units or 12.8% of the total housing stock being developed between 1979, and 1988. The majority of these units are in good structural condition, a result of the large number of planned subdivisions in addition to the relatively young age of these tracts . 4-3 CITY TOTA1� _ c,: 5 HOUSEHOLDS 9f. f1� �i'-, \,fr\✓/� �.'..�� ,36502 OWNERS (53.4%,, 311,893.•�/•- •• RENTERS (46_6%) 10,239 OWNERS (49.4%i ••�\ s'� + RENTERS (50.6%) ••� ■ F- NORTH •.•, 15,245 OWNERS (70.9%)CFNTRAi •\ 6,238 RENTERS (29.1%) \ ,\ DOWN- TOWN/ Meadowlark '\ \ OLD- SO�ffHEAST t, /;.•' \ ^\ TOWN \ �� ♦, • 4,897 OWNERS (31.7%) �\ JT Q�. ♦ �• � ,RBOR/\ / 6,i21 OWNERS (56.8%i_r-� • BCkS,-. CH!CA, 4,658 RENTERS (43.2%) .#i, S 10,533 RENTERS (68.3%) •s I 1' • sdson Company l: .' B o 1 S a C h i c a �\ CA watng i • .' Sea Cl(I . P s.C�K .'• Preserve y Country Club \ _ ICf�l•=��.��or.rwr... .....s r...... ■ ■ 1 t{yJ AY --►�-�- .............. COAST 1� }. P A C F I C O C E A N 0 3636 N0.1th cc■ie I FIGURE 5 HOUSINC TENURE:1988 s TABLE 16 CITY OF HUNTINGTON BEACH. AGE OF HOUSING .STOCK.: 1988- # of % .of Year Built Units Total 1939 or earlier 1 ,096 W. 1940. - 1949 879 1 .3%, 1950 - 1959 3; 109. 4.4% 1960 - 1969 28.,662 40.8% ' 1970 -1974 16,72-5 23.8%. 1975 - 1978 10,697 15..2% 1979 - March 1980. 2,478 3.5% . Apri l _ 1980____Jan 1988 _ 6,533 9•W Totals: 70, 179(a) 100.0%�b) ' Source: (a) U.S. Dept. of Commerce, Bureau of the- Census., 1.980 Census Report (b) California.-Dept. of Finance, Controlled- Population Estimates for 1=1-88 The accepted standard for major rehabilitation needs is.,af:ter- 10",years. In 1988, only 7 percent- of Huntington: Beach's..housing stork•.was:,over 30..: years old.. However• in: ten years, .near-.l•y:-half: (48:1%)." of`thei,City's,� housing stock will be over- 30'years.. ol•d" Th :s: woul;& i nd.ica.t6-the_ potential need: for rehabi.l i tat ion, and- continued, maintenanee_.oi== approximately 35,000 dwelling. units .by,;,the year: 20.00: Housing .Ass i stancei-Plan The City:s ,Housing .Assistance!:Plan (HAP-) prepared .ih- 1988!'. nt.ified:.the number. of housing units in Huntington- Beach in substandard. �'condition,' a.s presented in -Table 17. The .overalLl- quality of the- City's: housing. stock is- relatively high, with. only.a small percentage-.of:;units: need-ing - replacement• or':rehabi1itation'. Of the--City's 1988 hous:ing, stoek; , on1y_.. (a) The City uses the definition of substandard. as es_tablish-ed .in ,th,ee Uniform Building Code` and. is..g.ene.ral,ly interpreted. to .mean..a:_ dysfunction or failure of. any one�major.-building. system:i (e-..g=; . roof., plumbing,. electrical , or, heating) .:_ 'The,.City; also- uses.:HUD Housi.ng._, Quality Standards to determine -substandard.•conditions--when- the­..UBC: is not specific in certain areas. 4-.5 2.3`/a (1 ,633 dwelling units) were classified as substandard. Of the identified properties, approximately 48 percent are owner-occupied (785 units) , and 52 percent are renter-occupied (848 units) . The HAP identifies 64 percent (1 ,047 units) of the City's substandard units as suitable for rehabilitation where necessary repairs are considered economically feasible; 546 of these units suitable for rehabilitation are owner-occupied, and 501 are renter-occupied. TABLE 17 CITY OF HUNTINGTON BEACP HOUSING STOCK CONDITIONS: 1988-1991 i of Substandard Units Substandard Total Suitable for Rehabilitation Units Units(a) Total Low Income Owner- 785 1 .9% 546 142 (Renter 848 3.0% 501 213 ITOTAIS: 1 ,633 2.3% 1 ,047 355 I _ I (a) Hased on 70, 179 total housing units as of January 1, 1988, and the owner/renter mix provided in the HAP. _ Source: City of Huntington Beach Housing Assistance Plan, 1988-1991 Community and Neighborhood Enhancement Areas The City has targeted seven neighborhoods characterized by high levels of housing deterioration for rehabilitation assistance. These neighborhoods consist of the Washington, Oakview, Liberty, Commodore, South Shores, Oldtown and Townlot communities, as identified in Figure 6. Through its Community and Neighborhood Enhancement Program, the City offers low interest rehabilitation loans as an incentive for unit upgrading, and in addition provides needed public improvements to the neighborhoods. The following discussion provides an overview of the housing characteristics in each of these areas, and a summary of previous and current housing rehafai1i tat ion efforts. 4-6 • BF Y CGS �.0�. ry- t I • CV?G i••••�i•'• : ••• •••• .•• •• �• •� ••. •••••• ate. oo •• ••� • • �tr 00 • Oakview Redevelopment Area Washington Enhancement Project / �y * • . Liberty Enhancement South Shore'Enhancemen+ Project v�faGf TacEe `f`0`�� Area • 5����1 Y�f"Lf • Commodore Enhancement Project :• .•' • • .♦ T Oldtown Erhancement Pcoject, ; Bo1sa C h i c a Cr'eua. • • t, .Sea Vill count Plants ?> � •rf e • ®... • • • 'fir vy Chib,''" ��• Preserve •�� .ti � _ �,.....- . ....--} ... ...:.......... � • .; :• Townlot Enhane:.,,rent •Project'. . � .-COAST P A C F I C '0 C E A N North 0 3676 K "'sail•In lest FIGURE o COMMUNITY AND NEIGHBORHOOD "cti /-.NCE.mENT AREAS 1 . Washington Enhancement Project HousincZMix: Unit _l_ype Number of Units Single -Fami ly 16 Duplex 4 Tri -Flex - Four -Plex 4 5-9 Units 10 10+ Units - Total 34 Age-of Units : 40--50 years old Ilistory_anci Current Status of Area: The Washington Enhancement Project Area was created during the early 1980s . Rehabilitation efforts were sparked by a series of modest public improvements to streets and sidewalks which motivated local property owners to renovate their homes and yards without further City involvement . While the City has offered low interest loans to aid homeowners in the rehabilitation of their property, only two loan applications have been received, and they were subsequently withdrawn. All residential improvements in this area .have been initiated through private funds. Public improvements to the Wahington Enhancement Area were successfully completed in 1984. Low interest rehabilitation loans will continue to be offered to homeowners. 2. Liberty Enhancement Project Area Housing Mix: Unit Type Number of Units Single- Family 42 Duplex 38 Tri -Plex 17 Four-Plex 44 5-9 Units 19 10+ Units - Total 160 Age of Units: 30 .35 .Years old 4-8 i Wi„s,�,,ory�aod Cgrr,ent Statue of Area: • Thi+: Hbpr•ty Enhancement Project Area began in the mid .1980s..' During the. p.r�&Aous years, the area received _public improvements to the existing 't'r sPets and sidewalks. The City also issued three loans :for private 6bilitation efforts . Currently, there is moderate renovation .activ, .y in `the -area. • Three more loans have been granted by the City to privately rehabilitate a total' of 10 units. Also, 'Liberty area residerits recently at,and.oned _and. -fi'11ed .in the Carey Water Tract Well because of,.wa.ter contamination. All' area residents are now :hook-ed up to .the '.C41ty •water. system. :Th.i s trans•i,ti,on from well water to City water was financed through CDBG funds and coordinated through the Economic Development Department. - Overall , rehabilitation efforts in th'e .area have been successful based on a mix of public and private funding.. The City- expects completion of public improvements to the liberty Enhancement Area =withttn the next 1-2 years . 3. Commodore Enhancement Project Area Housin _Mix: Unit Type Number o.f Un•i-ts Single-Family - Dup ,ex . . - Tri -.P1 ex - .Fodr-Pl:e•x 80. 5-9 Un.i is - 10+ Uni is - Total 80' Age of Un.i is 26..,years old . ' lij_s�o.ry:._a�1d,��rrgnt .,Status_of Arm.: Before rehabi.l.itation began in 19&&, Commodore C-i-rcTe ways 'on'e Vf ithe most bl ighted areas in Huntington Beach. Since then, the City .h-as, p.l-ayed a major role in its rehabilitation. Thus ;fa•r, the Ci ty h•as,-.gr.aritedi 1-oan-s for rehah.il itation to .19 of the ''20' apartment .bui.lA-Angs i,,n the ,area:.. iThe City has also .provided 'Commodore .C`i,rcl%e ,Vtth. a repayed str:ee.t 'and'.ail:l!eyway, new bl ockwalA s, a fnew street l.i.ghting. -system,. ands impro.vemen.ts :tw :the area's sidewalks. i Overcrowding was another concern i:-n'Commodore Circle, .w,i'th vevera-1 .hous.ing: 1 units. occupied by two and three :fami.lies. In an attempt to. ,reduce :unit overcrowding, qual ified tenants were .offered Sect.ton :8`housing.:sub�sAA:i-es i to .relocate to units in other pant-s 'of 'the City. i 4� 9 Rehabilitation efforts in Commodore Circle are still in progress. Although rehabilitation activities are not yet complete, the efforts have dramatically improved the appearance and quality of housing in Commodore Circle for area residents . Also, a recreation lot development as neighborhood recreation area will be completed by 1990. 4. Townlot Enhancement Project Area Dousing_ Mix: Unit__' e Number of Units Single-Family 979 Duplex 468 Tri -Plex 160 Four-Plex 614 5-9 Units 608 10+ Units 379 Total 3,208 Age__of Units : 70 years to current construction i�isto_yOf._Currrent_ Status of Area: " The units in the Townlot Redevelopment Area were originally constructed in the 1920s and 1930s. As the City grew and public and private interest focused on new development, this area became neglected and began deteriorating. It was not until the early 1970s that a City-initiated rehabilitation effort was made. The City offered low interest loans to property owners to improve their property. While the City has offered low interest loans for property improvements, most of the redevelopment efforts are now privately funded. Rehabilitation efforts are continuing in the Townlot area. As in the past, the City continues to provide low interest loans for rehabilitation efforts in the area. The City has also made several public improvements throughout the Townlot area such as improvements and repairs to existing roads. The City has also made an effort to widen every alleyway to 20 feet. Recent increases in land. values and new home sales prices has stimulated privately-financed rehabilitation in this area. 4-10 5. South Shore Enhancement Area ilut�_si.ng_Mix: Unit Type Number -of Units Single-Family 636 Duplex - Tri -Plex - Four-Plex - 5-9 Units 10+ Units - Total 636 Age of Units : 25 .years old History and Current Status of Area: The South Shore Enhancement •Ar-ea, originally a H.U.D. development, has remained an active rehabilitation area .since its .establishment as a rehabilitation target .area during the -1-980s. :Both, publ i c and private funding have contributed- to 'the rehab i:li tat i.on --effort. The. City ;has granted more than 50 1ow interest loans -to :property '.owners•.wishing- to rehabilitate their property. Recent increases in--proper.ty ,values have stimulated privately-financed property upgrades and;-home ,improvement projects. Overall , the South Shore enhancement project has been ,a success . _However, despite City encouragement throughzehabilitatton .subsi•dy, '.-there is still a small percentage of property owners who have not made .a concerted effort. to rehabilitate their property. .6, Oakview Redevlopment Project Area Housing. Mix: Unit lype NuTb ,_r of Units Single-Family 33 Dupl ex .47 Tri -Plex 18 Four-[Ilex 390 5-9 Units 158 10+ Units - Total 646 Age of Units : 25-30 _years old 4=11 liistor•y__and Cum rent Status of Area: The Oakview Redevelopment Project Area was forme, in 1982 and has stimulated substantial rehabilitation of the area. Public improvements include new landscaping, retaining walls, sidewalks, street lighting, street alignments and alleyway improvements. Through City efforts, the Koledo lane Demonstration Project was implemented to rehabilitate 16 4-plex units to meet HUD Section 8 standards. The project featured (-onversion of a vacated street into a community park as well as replacement of existing carports by enclosed gari.ges. Property owners of these new garages were allowed to construct a fifth unit over the new garages. The City has also granted approximately 15 low interest loans for improving 58 existing units. Jacquelyn Lane Projects, currently under cunstruction, will provide new public improvements to expand on the Koledo Tana Demonstration Project. These improvements include modifications to l ai,di,c ap i ng and open space. Most of the rehabilitation efforts in this area to date have been focuseci on the southern half of the Oakview area, which abuts Slater Avenue. However, according to the five-year project plan for Oakview, the focus of redevelopment will soon shift to northern Oakview. In 1990, many of the same types of public improvements and general renovations which are occurring in the southern Oakview area are scheduled for the northern Oakview area. 7. Oldtown Enhancement Project Area Ilou_ i. _Mix: Unit Tyne Number of Units Single-Family 758 Duplex 274 Tri - Plex 284 Four-l'lE.�x 225 5 9 Units 260 ]Ot Units 207 Total 21008 A(;e of Units : 70 years to current construction History and Current Status of Area: like the Townlot area, housing units in the Oldtown area were constructed in the 1920s and 1930s and experienced the same neglect which led to the deterioration of the area. Neighborhood Enhancement has brought about substantial housing rehabilitation to the area. 4-12 , A 4.4 Housing Costs Ownership Housing In 1980, the median home `value in Huntington -Bea•ch was $116,900. As illustrated in Table 18, for-sale housing in Huntfngt'on 'Beach was nearly 10 p.ercent higher than the County median. - The median home value of the majority of surrounding jurisdictions 'fell be':;o:j the County median. In comparison to the adjacent juri.sdicti'ons, only the median home value in the Cities of Fountain. Valley andNewport Beach 'e :r:eed.ed Huntington' 'Beach'.s for-sale housing value. TABLE 18 HOUSING VALUES: HUNTINGTON' BEACH ANO •SURROUNDING-',AREAS 1980 Median 'Owrrer-Occupied �..Jurisdict_ion � _ Housing�Jalie _ Anaheim $92,�300 Costa Mesa $106::000 Fountain Valley $122Y 00 •Huntington Beach _ iM1900 Newport Beach $200,000+ Santa Ana $80.,,OpO Westminster 195;R00 Orange County `$106,�800 ! Source: Dept. of Commerce, 'Bureau of the" Census, - ' 1980 Census Report HOUSING VALUES: HUNTiNGTO,N -13E,4CH AND S URAOUND1NG-AREAS 1 goo L{s :;r.• j r•�iiitiii;►,}g i!'iaii?}j! ti :!}I:i}Illfil?�1� {is 1 i i'� !� :!'°'�••''�ifE j�i!i��` �''} ' � t 1 1 , { ii 1;i:1, { i iii}l�fi'"• �i'i'�i°ji{;jiF ! ! I jF IS i,ti•,�{t�I.t }{I's IJ{•{;j i1�?li?iz j��} ;i;l°:�;;+=;a}a '•{ ..1 t !' ii1 i� ! ,, ii{{'•�{�!tFF':{ ?'}••i''{ °{i ,;t,Ii:}�Ejil °jij! i}lo !� i,l.j:.,(• ' , ,�• ,�d.,. •,.i t,i;i;•i ,.. ;: t:j,Y;: : :�i. F. .}• { , t�?. k�:r°" ii' tP;,}li;i.:j � j31p,•,::: ., t i{ !N ! j {I4 ,'tf�I 11.J{�j•'� i t{,:, j!: ?t. i t!• (.:•t t••::,:iij:t•; •.:;i: ;, •, ,!.;;.:;` C { 17t {is' +?'•'{'(_}{i! !}"=i{,�,'.j';ij�{e =}}jj!;!i•:'•!i t..{i Ij?� t!} j I't• tjt jaji:,E.::}j:` jp0'iuEi'��}i A O }.ii 1:::?:•{!i� „ }c�?{ii!??�iij'i i Annheim Costa Fount'ein-"HnCn'p�n'Newp'or"E� Saiits'`-`Wstrnstr. omn�p:e.C.o. I; Mess Yal{ey z:Be each Wiec_h, Am 1 4- 13 Single-Family Housing In order to obtain up-to-date information on current mousing value in Huntington Beach, statistics have been compiled on the sales prices of all single-family homes sold in the City in 1988. Sales activity was high during this period, with nearly 2,900 residences sold. Tabulations of sales information have been produced for both the City as a whole and for -its four subareas, an(] are presented in Table= 19 to 23. ' "fable 19 illust.rates a dramatic 90 percent increa::e between 1980 and 1988 in the median sales price of single-family homes. riedian selling prices ranged from $165,000 for a one-bedroom house to $275,000 for a house with 5+ bedrooms. While median sales prices would indicate a relatively narrow price range for single-family homes, a significant number of homes were available at both the lower and upper end of the price ranges. At the low end of the sales range, more than 200 homes sold for less than $150,000. At the other extreme, approximately 150 expensive, luxury homes sold for prices in excess of $500,000, with ten of these homes commanding prices of more than $1,000,000. Median home size ranged from just over 600 square feet for a one-bedroom dwelling to nearly 2,500 square feet for a dwelling with 5+ bedrooms, indicating a range in unit sizes available to meet the needs of Huntington Beach's diverse households.- TABLE 19 CITY OF HUNTINGTON BEACH SINGLE-FAMILY RESIDENTIAL SALES: 1988 Number of - Number Home Prices Bedrooms Sold Median Average Range 1 24 $165,000 $166,675 $63,000 - $365,000 2 276 $188,500 $219,171 $71,500 - $875,000 3 1 ,253 $199,900 $229, 158 $63,000 - $1,325,000 4 1 , 143 $255,000 $292,405 $73,500 - $2,400,000 5+ 189 $275,000 $344,780 $159,000 - $1,000,000 Totals 2,885 $222,000 $260,315 $63,000 - $2,400,000 Number of Square Footage Bedrooms Median Average Range 1 615 738 441 - 1,952 2 1 ,224 1,396 527 - 3,012 3 1 ,392 1,561 928 - 5,252 4 1 ,918 2,038 984 - 7,640 5+ 2,490 2,572 1 ,222 - 5,105 Totals 1 ,630 1,793 441 - 7,640 SourcE : California Market Data Cooperatives, Inc. , Single-Family Residential Sales Data Quarterly Reports for 3/88 - 12/88. Compiled by Cotton/Beland/Associates, Inc. 4-14 the following sections discuss the characteristics of single-family sales in each of the four subareas in the City. Figure 7 depicts level of single-family sales activity, as well as unit sales price: in each of the four subareas in the City. DOWNTOWN/0i fl IOWN: Ilome�, sold in Downtown/Old lown comprised 19 p-rcent of all sales in Huntington Reach in 1988. Homes ranged in value, from a median of $185,000 for a one-bedroom dwelling to $535,250 for a dwe"iling with 5+ bedrooms, represviii ing the widest price range in the City. l::e median selling price for a single family home in this subarea is $260,500, substantially higher than the City-wide median of $?.22. ,000. The large median home size of' 1 ,885 square feet. lends further evidence homes sold in the Downtown/Old lown area are generally larger and more expensive than in most other areas of Huntington Beach. TABLE 20 CITY OF HUNTINGTON BEACH SINGLE-FAMILY RESIDENTIAL SALES: DOWNTOWN/OLD TOWN Number of Number Home Prices 1 Bedrooms Sold _ Median Average 1 16 $185,000 $202,250 $70,500 - $365,000 2 118 $267,500 $260, 136 $I27,600 - $469,500 3 269 $245,000 $270,748 $129,900 - $712,400 4 ill . ...$275,000 $333,567 $122,000 - 069,500 5'+' 36 $535,250 $543,575 $229,000 - $995,500 Totals 550 $260,500 $297,418 $70,500 - $995,500 Number of Square Footage Bedrooms Median Average _ _ _ _ Rang e _ 1 726 816 441 - 1 ,952 2 1 ,561 1 ,624 628 - 2,727 3 1 ,794 1 ,842 960 - 3,543 4 2, 151 2,309 1 ,207 - 4, 196 5+ 3,752 2,506 1 ,885 - 5, 105 Totals 1 ,885 1 ,969 441 - 5, 105 Source: California Market Data Cooperatives, Inc. , Single-Family Residential Sales Data Quarterly Reports for 3/88 - 12/88. Compiled by Cotton/Beland/Associates, Inc. 4-15 9, °`�Fti /;•• •; `h\✓ ••;• �.:� CITY WIDE TOTALS • ••.• 1' 'ti/ �/ Median Sales: $222,000 . J ',o. Sold: 925 •'•\ '\ tiled,an Sales:$193 900 NORTH CENTRAL •••:• / \, \' o- ego- � •%� �� �� •\ �Tc / DOWN- ,\ TOWN/ ar meadowlk \ OLD- SOUTHEAST % /A TOWN /1 \ HARBOR/\ / \,\ .--.•.� \,\ No. Sold: 944 /,• 3G.SA CHKA :y \ Median Sales 5220,000 �\ No. Sold: 466 ,-: :, No. Sold: \ =° "" ';bow" Median Sales:$335,000 :( Median Sales:I $260,500 ��,� c ,. a M t °�,; `•� Bulsa Ch . ce �.l seaCtilI ela` . erne.a P), P • County Club \ • ,• reserve • ••..r ar• — -.-�- --........................ COAST P A C F I C O C E A N 0 3636 Z!Ta) North "scale In r••Iz_ FIGURE 7 MED;AN SIti,-,LE FAMILY RESIDEVT:gt SALES PRICES:1988 HARBOR BOLSA CHICA: Although the Harbor/Bolsa Chica neighborhood comprised the smallest portion (16%) of single-family homes sold during; .the time period', it. was the location of the most expensive. si,ngle-family, home sales in. Huntington Beach. With a median sales- price of.,$335,.000, this area exceeded the median sales price of the City by $113't000,L- All ten of Huntington Beach' s one million dollar-plus homes sold in 1988 were located in the Harbor`/Bolsa Chica subarea. Sales ranged from o- median of $250,000 for a one-bedroom home to $475,000 'for° a homer wi th 5+ .►;adrooms . y With, a -med i an home size of 2,099 square feet, unit- sizes in the harbor/Bolsa Chica neighborhood were significantly. larger. than in other parts of the City. TABLE .21 CITY OF HUNTINGTON BEACH SINGLE-FAMILY RESIDENTIAL SALES: HARBOR/BOLSA CHICA Number of—. .NumbE=.r -..—_.�----- --� Home. Prices— -------------- Bedrooms_-_ Sold Median Average Range 1 1 $250,000 $250;000, . $250,000 - $250,000 2 47 $2.25,000 $273,874 . $97,000 - "IS875,000 3 152 $241 ,000 $333-,-522 $108` 500 $1-;325,000 4 249 $375,000 $434,469 $176:000 $2,400;000 5+ 17 $4.75,000 S552,441 $225,0.00 -,:$1 ,0004DO Totals 466 $335,000 ' $389;253 $97,000- -. $2114.00,000 Number of Square Footage Bedrooms Median ' Average Range 1 .482 482 482 - ' 482 2 1 ,547 1 ,960 � 527 - 3,012 3 1 808 1 ;,859 1..;031 _: 5;252 4 2,.423 2,,455 1 ,268 7,640 54- 3,261 3;264 2.,235 4,897 totals 2,099 2, 186 -.482 - 7,640 Source: California-Market Data Cooperatives, Inc. ; Single—Family Residential Sales Data Quarterly Reports for 3/.88 - '12/88. Compiled by Cotton/Be Tand/Associates, Inc. i 4-16 NORTH CENfRAL: r - North Central Huntington Beach was the location for 32 percent of all home, sold in 1988. This area exhibits the lowest median sales price in the City, $193,900, and the smallest range in selling prices, ranging iiom a mrdian o1 $154,900 for a two-bedroom unit. to $255,000 for a unit with 51 bedrooms . This area also contains the smallest sized homes, with a median home size of 1 ,392 square feet, along with the smallest range in median home sizes. This data indicates a fairly homogL:nenus, lower-priced 11QL15 i ng stock in North Central Huntington Beach. TABLE 22 CITY OF HUNTINGTON BEACH SINGLE-FAMILY RESIDENTIAL SALES: NORTH CENTRAL Number of Number Home Prices Bedrooms-__Sold _. Median Average Ranee 1 0 $0 $0 $0 - $0 2 26 $154,900 $168, 100 $90,000 - $375,000 3 462 $185,000 $193,858 $63,000 - $435,000 4 392 $200,000 $218,214 $107,500 - $395,000 5+ 45 $225,000 $259,951 $178,000 - $490,000 Totals 925 $193,900 $206,671 $63,000 - $490,000 Number of Square Footage Bedrooms Median Average Range 1 0 0 0 - 0 2 1 ,100 1 ,220 782 - 2,229 3 1 ,285 1 ,369 928 - 2,229 4 1 ,493 1 ,707 1, 134 - 7,274 51 1 ,910 2, 120 1 ,222 - 3, 151 Totals 1,392 1 ,544 782 - 7,274 Source California Market Data Cooperatives, Inc. , Single-Family Residential Sales Data Quarterly Reports for 3/88 - 12/88. Compiled by Cotton/Beland/Associates, Inc. 4- 17 SOUTHEAST: Units sold in Southeast Huntington Beach• comprised 33- 'percent of al-1 single-family home sales i'n -1988. Of ,all four neighborhoods; the S'nutt'ie iv,i. most closely mirrors the- City=wide totals. Selling prices ranged from -a- median of $75,600 for a one-bedroom unit to $269,500 for a dwelling with 5+..bedrooms. Median. homes sizes ranged from E'5 squ,ar;e feet fora one- b'edroom unit to 2,275 square feet for "a- 'dwel l`i ng with 5+ bedrooms.. Overall sales prices in the area were sligh'-fly 1.ow,-!r than' th6st 'City-w1de, as were the size of units sold. This data indicates that Southeast Huntington. Beach on average provides smaller;, yei more affordable unilts for homebuyert. TABLE 23 CITY OF HUNThNGTON BEACH! SINGLE-FAMILY RESIDENTIAL SALE$: SOUTHEAST Number of Number flome Prices i Bedroori Sold Median Average Range 1 7 $75,000 $73,457 $63,000 - `$7.8,700-' } 2 85 $153,000 $147,676 $71,500 - $281,50.0 3 370 $199;500 $200,-126 $'84,506 - $655;000. 4 391 $258:,000 $-264;063 '�73,,;500_ $-9-70.,'000. 5+ 91 $269,500 $269' •291 $159_,000 $400;000 Totals 944- $220;000 $227,614` $63,066 _ $870 "000 Number of Square Footage . Bedrooms M'ed.i an Mgra •? .Range - 1 615 569 57Q - . 61:5'• 2 110,16 1,097' 813- - 21.239' 3 1,355 1,473 961. - 5,26:* 4 1,958 ' 2,028 94 - 3370 5+ 2',275 2,20 1,740 -' 3,055 Totals 1 ,624 1 ,742 570 - 3,370 Source: California Market Data Cooperatives; Inc. , Singlejamily.­ Residential Sales Data Quarterly Reports for 3/88 - 12/88. Compiled by Cotton/Beland/Associates, Inc. I ' 1 4-18 f Condominium Units in addition to single-family detached homes, the 13,000 condominium units in Huntington Beach offer an alternative option for home ownership. As illustrated in Table 24, 825 condominiums were sold in the City in 1988. These units represent 22% of the total 3,710 ownership housing units sold in Huntington Beach during this time period. Two and three bedroom units comprised the majority of available condominiums. accounting for nearly 85% of the units sold. Sales prices ranged from a median .of $116,500 for a one-bedroom unit, to a median of $272,000 for a u0 t with 4+ bedrooms. In contrast to single-family home prices, condominium sales prices were on average $32,000 - $50,000 less expensive for one- to three-bedroom units, and $88,000 less expensive for four-bedroom units. The City's housing stock,of condominiums thus provides a more affordable home-ownership alternative to single-family homes, permitting a greater number of households to afford the option of home purchase. The smaller unit sizes of condominiums are well -suited to the City's small 1-3 person households. TABLE 24 CITY OF HUNTINGTON BEACH CONDOMINIUN SALES ACTIVITY: 1988 Number of . Home Prices - Bedrooms Number Sold Median .Average Range 1 100 $116,500 $116,373 $50,000 - $390,000 2 489 $161,900 $174,920 $74,000 - $930,000 3 202 $179,950 $196,251 $80,000 - $975,000 4+ 34 $272,000 $256,776 $95,000 - $840,000 Totals 825 $158,000 $176,402 $50,000 - $975,000 Number of Square Footage Bedrooms Median Average Range 1 776 798 471 - 2,750 2 1, 194 1,277 513 - 2,543 3 1 ,414 1 ,510 � 21 - 2,750 4+ 2,083 2,071 1,245 - 3,260 Totals 1,307 1,307 471 - 3,260 .Source: California Market Data Cooperative, Inc. Condominium Sales Data Quarterly Reports for 3/88-12/88. Compiled by Cotton/Beland/Associates, Inc. 4-19 i I a The level of condominium activity, as well as writ sales prices, varies among geographic areas in Huntington Beach, as depicted in Figure 8. The following sections discuss the characteristics of condominium sales in each of the four subareas in the City. DOWNTOWN/OLD TOWN: In 1988, the Downtown/Old Town subarea accounted for the greatest number of condominium sales in the City, comprising 39 percent of all units sold. With a median sales price of $175,000, this area tiad the most expensive condominium sales in the City. Sales prices rangeo From a median of $116,000 for a one-bedroom dwelling to $284,500 for a 4+ bedroom dwelling. As could be expected, unit sizes were also significantly larger in the i Downtown/Old Town subarea than in other parts of the City. TABLE 25 CITY OF HUNTINGTON BEACH CONDOMINIUM SALES: DOWNTOWN/OLD TOWN Number of - i� Home Prices Bedrooms_ Number Sold Median Average Range 1 42 $116,000 $113,043 $50,000 - $175,000 2 203 $170,000 $183,252 $74,000 - $372,500 3 67 $197,900 $206,763 $124,600 - $369,900 4+ 10 $284,500 $269,070 $169,900 - $294,900 Totals 322 $175,000 $181,651 $50,000 - $369,900 Number of Square Footage Bedrooms Median Average Range 1 776 772 536 - 970 2 1,206 1,333 736 - . 2,209 3 1,579 1,653 1 , 112 - 2,690 44- 2,535 2,447 2,070 - 2,559 Totals 1 ,235 1,361 536 - 2,690 Source Cal ffornia Market Data7oope rat ive, Inc. - ---' Condominium Sales Data Quarterly Reports for 3/88-12/88. Compiled by Cotton/Beland/Associates, Inc. 4- 210 B „ �y 0,�,/`/ CITY-WIDE TOTALS ;� ,'� '`� �.• �� No Sold: 825 ,°`� �'� °�\/ {�,/'° � . • Median Sales: $158,000 No. Sold: 95 Median Sales: $127,900 f` •.���. j NORTH CENTRAL No. Sold: 191 j"D�OWN- Median Sales: $144,000 , ,�,� TOWN/ . .� ,•. ��=Rk OLD- SOUTHEAST •+/+ •� TOWN • e •% HARBOR/ -�+%� BOLSA CHICA, ••J • h? ,#••No. Sold: 217,..•- ;.,�� two �T «N� ;Median Sales: $1551000:; � ,+'• Botsa Chica s`3 .\ «eq=ny I • i f�, ••� P r e s e r v e Country C club No. Sold: 322 i �� all •--...■,•• :s Median Sales: $175,000 ky __ _ • ••�•.o.■....■�• COAST -�- Pi O C E A N o _3636 FIGURE 8 MEDIAN CONDOMINIUM SALES PRICES:.1988 f HARBOR/BOLSA. CHICA: The Harbor/Bolsa Chica subarea was the. location for 26% of all condominiums sold Just as with single-family home sales, thi's .area contained some of the' most expensive condominium units- in the City, with 15 condominiums selling for prices in excess of $450,000.w Sales prices ranged from a median of $120,.000 for a one-bedroom unit to $363,000 for a dwelling with 4+ bedrooms: Although unit sizezzon average were .not the largest in the City, 'the. Harbor/Bolsa Chica rieig;lborhood offered condominium buyers the. widest choice 'in unit size,. ranging from.471 square feet 'for a one-bedroom dwelling .to 3.,260 -square feet for,a: four-b.ed.room dwel 1.i'ng. F . TABLE 26 CITY OF HUNTINGTON BEACH . CONDOMINIUM SALES: HARBOR/BOLSA CHICA - Number of Home Prices Bedrooms Number Sold Median Average Range 1 39 $120,000 $126,744 $73,500 - $284,000 2. 117 $169,000 $201,780 $8.6,000 - $930,000 } 3 53- $235,900 $262,594 $163,000 - $.975,000 4+ 8 $363,506 $338,040. $681400- - $840,000 Totals 217 $155,000 $210,377- $68,400 -_ $9775,000 Number of Square Footage Bedrooms Median Average Range 1 -5 6 819: 47.1 - 2,750 2 1 2-57 1,305 513. - 2,543 3. 11,543 1,622 1 ,92-1 - 2,7.50 4+ 2,-,971. 2, 148 1,895_ -_ 3.,2.60 Totals 1.,270 1,326. 4T1 - 3.,266. jSource: California Market Data Cooperative, Inc. Condominium Sales Data Quarterly Reports for 3/88-12/88. Compiled by Cotton/Berland/Associates, Inc. ' 4-21 NORTH CENTRAL: Condominiums sold in North Central Huntington Beach comprised the smallest portion (11.5%) of units sold in 1988. Of the 95 units sold, 86% were either two- or three-bedroom units. This area exhibits the lowest median sales price in the City, $175,000, as well as the lowest average, $138,074. The North Central neighborhood also Contains the smallest sized condominiums with an average unit size of 1,113 square feet. TABLE 27 CITY OF HUNTINGTON BEACH CONDOMINIUM SALES: NORTH CENTRAL Number of Home Prices Bedrooms Number Sold Median Average - Range 1 12 $94,500 $106,392 $65,000 - $225,000 2 62 $128,000 $135,934 $87,000 - $390,000 3 20 $129,500 $161,120 $102,000 - $390,000 4+ 1 $190,000 $190,000 $190,000 - $190,000 Totals 95 $127,900 $138,074 $65,000 - $390,000 Number of Square Footage . Bedrooms Median Average Range 1 794 846 712 - 1,184 2 1,995 1,071 752 - 2,591 3 1,227 1,391 1,134 - 2,441 4+ 2,342 2,342 2,342 - 2,342 Totals 1,059 1,113 712 - 2,441 Source: California Market Data Cooperative, Inc. Condominium Sales Data Quarterly Reports for 3/88-12/88. Compiled by Cotton/Beland/Associates, Inc. 4-22 i SOUTHEAST: , Southeast Huntington Beach was- the lo.cat.ion for 23.2% of condominiums sold i:n 1.988. Although 90% of the 191 units sold Were either,two- or three-bedroom units,, the Southeast still had the,g.reatest,- number (1.5.) of condominium dwellings with 4+ bedrooms,. Units ranged in price from- a median of $94;000 for a one-bedroom dwelling to $154,.000 for a. two-bedroom dwel.li,ng, the smallest price range. in the City. Overall median sales prices ($144,000) were slightly;- lower in this arE.a than those City-wide, as were the size of units sold (1,888 square feet) . Th-i.s' data indicates the the Southeast offers slightly. smaller, yet. more affordable. units, well-suited for the. City's' smaller households.. TABLE' 28 CITY OF HUNTINGTON BEACH CONDOMINIUM-SALES: SOUTHEAST Number of Home Prices. Bedrooms Number Sold Median Average Range 1 7 $94,.000 $.95,686 $"6.5.,000 - $.390 000 2 107 $1544900 $152,333 $82,00.0 - $269.,900., . 3. 62 $1.21,000 $.139;269 $80,000 $265�,000 4+ 15 $1159 00.0" $�177,780 $95;;000.. - $330,000*, Totals 191 $144,000: $`148,015- $65,00.0-' $390';00.0 Number of Square Fo.otage_- Bedrooms Median Average Range-- 1 786 752 60:0 - 895. 2 1.,150- 1,244. 790 2-,.197" 3 1 2.08 1,2.97 85.4• - 2;036 4+ 1,2821 2,.828 2-,245 2,713. Totals 1,188,, 1,2:89 600 - 2,7,17" Source: California Market Data Cooperative, Inc. Condominium Sales Data Quarterly Reports. for 3/8&-12/8-8:: Compiled by Cotton/Beland/Associates, Inc.. 4-23 r Rental Housing In 1980, median monthly rental costs in Huntington Beach were $363. As presented in Table 29, much like for-sale housing costs, Huntington Beach's rents were higher than those in nearby jurisdictions, with the exception of Fountain Valley ($375) and Newport Beach ($443) . In comparison with Orange County, the City's rents were nearly 10 percent higher. TABLE 29 CITY OF HUNTINGTON BEACH MONTHLY RENTS: HUNTINGTON BEACH AND SURROUNDING AREAS 1980 �i Median Monthly Jurisdiction Contract Rent Anaheim $305 Costa Mesa $339 Fountain Valley $375 Huntington Beach $363 Newport Beach $443 Santa Ana $307 Westminster $328 Orange County $331 Source: Department of Commerce, Bureau of the Census, 1980 Census Report. MONTHLY RENTS: HUNTINGTON BEACH AND SURROUNDING AREAS 1980 $5oo C $4 0 0 fi£:ilii£31 cc r i}i'i•irl{{$$k ?:i!ilif!�Fii ii is=?tip�il:t'i{{ c}_?•3 } ' _ $300 iii:?!irrldFi:£r .£1!1}i{ii?{!€:? r•iif£; •£':�, ?li:i:i:?:?:i:?:i :E:i,E:i:i:i:i: ., ?::::{i4:.• :f.,{i?ii;:{{e{{5i,? �di•::;?£:;i FI {?}�i�'Y t ::•{::::::::::::: 9:::i ::::::: i! :::::::::::: i�!!?'°°°iil�;i U i! : ( i!ft$ �,` £ ii•. it £a,c,y:... :$:;iri;;.I•:c;, i?i(:• a of i:.l'�t i !F! t ° {a YS{{:. ,:':i:::!pi:::c •:j;:.... C i�, � £ 1!1 I:t r: aF!!{iti:;::; ia,,,•, r y:::.t.}:}f:2'E CJ r!�• ?i6?i'i•i�i°'i•i' ' { { ! ! !1 r e'1 �_ , F lilt i i,lr it..{ic ?I 14 ?,i-i'iiiiiiii?ii $2 00 � 1't�i � ! j � clf_� ' !3 if 1 .i:!{i�i !}Ei 77{{1• } { i£t !li a•t:R ,L'•;:I!pi..c{r�n }: c 1}'�''• G f 1'I £ t1 }{�}�° f {liil! ii�li{ is4ti?}?iiiii•}!!{i i??j°i?{?{?ii°�p° $ {I t��I � t ', � li 11 3 ! '�'�'l�li?;ill :c4ff,;:::•�iili� ii:iii:':;i:�'i�i � t 7 SS f 1 tt+t. •. t•:•: '1 1 (, i;i i !�l �i , i S t 1 �SI�I ici£{• iiiIr;�l{:i�:lii i aiiiiii'i???i: ii } �•. i i 33 ! i. $1 0() i 1��i�llfi : 3. ! i• �! �'� j{�F�,ti 1{ il�{:�i;tlil lt�:l{iilili�ii! i;�i!liliiri !,•]! 1 i ct� 3 t� !.rlffl•t sl ,::I°ii.tit.; �{}!i� iii:LI i!i�iSi� r #1 ,•l {:!{I!1{I $(] ?!iii.l!1 1 i? t,l i.1 i �. .tilt i li{}.,::l{t?i i iEiii?{? ::!{:. Anaheim Costa Fountain Newport Santa Watmatr. Omnge Co, Mesa Valley Beach Beach Ana t t 4-24 I �I I ' I In -order to update information on rental costs in Huntington -Beach, data has been compiled from advertised rental units in-the Sunday -.editions of the Orange County Register newspaper between January through ,:December 1988. . As presented in Table 30, nearly 60 percent of all units ad'Vertised 'were two bedroom units. Median rents for the 196 -units sampled vary from 5525'for.a. studio to :a -high of -$950' for a unit'vith -3+ bedrooms. TABLE 30 CITY'•OF HUNTINGTOWBEACh MONTHLY ' ENTAL RATES: 19& Number of Number of Bedrooms Units _Median Average Range Studio 6 $525 $505 475 - .$525 1 '67 $630 $675 $525 - '$770 2 173 $750 $783 $550 - $1250 3+ -50 $950 $847 $525 - $1,400 .Totals 296 -$750 17-64 14`75 14400 i Source: Orange County Register, Sunday -Editions: 1/3/88, 4/3/88, 8/7/88, 12/4/88. Compiled by Cotton/Beland/kssoc Cates, 'Inc. I In addition to rental unit .size, 'rental rates 41-sso differ -b'y­geographi.c location in the City. Figure 9 illustrates median rents 'for--each 'of 'the four subareas. Median rents Varied feom : 7.00 in:'North Central 'Huniff' won Beach tto $850 in the Harbor/Bol sa Chic'a='subarea, -with �medtan. reni's ifn Downtown/Old Town ($725) and Southeast-Huntington Beach (�$710•) �flalairig in between those two extremes. As depicted in Table -31, the 'major�'•ty :'of:_the units advertised during the time .perod -are located fn 'Downtown%Old Town (3.9%) and North Central. Huntington Beach (J1%) . Multi=_fami'Ty 'rental units in Downtown/Old Town present the greatest variety, ranging from`be�achfront studios to dwellings with .three bedrooms. -TKe ­North 'Centr'al , SouthWait and Harbor/Bolsa Chica areas are comprised primarily of 'two- ^and three-bedroom units. The pr-oximity !to amenities such as -Huntington Harbour and/or the beach i n 'the Southe�a-st and Harbor/Bol sa ..Chi ca en'abl e these areas to command higher market rents. - I I 4-25 G GF,1 c CITY-WIDE MEDIAN RENT: $750 o`off,.`:•�.✓'•�• .•f \✓�i,'• •;��' / .. ■ n- \ CENTRAL$700 `\\ DOWN- TOWN/ l\ OLD- \\ SOUTHEAST�M M_a OJ w:ar'c \ A. ! '\ `\ TOWN ' HARBOR)'\ / `\ —'rf,\ '\ •`•� BOLSA 850 as ,...• .. � fRrf ♦■rurpaaa]■aaaaa �� GTQt� \ 'tom��1 Y:ur.[nglon , f d eas«t eottgaoy I; 2 01 s a C h i e a Gerwadq sea Cliff man't vnC ♦` ■ •t■ j f Country Club - \ t� J; Preserve �\ Rs P^rY)Cia■1�uaa•aa■���yruaaa f` ............... `_��aaaaaaaaraagalaa>.ga ••♦ WnY COAST rj. -t n P A C F I C 0 C E A N North Ka— �—" r ' FIGURE 9 MEDIAN RENTAL RATES:1988 TABLE 31 CITY OF HUNTINGTON BEACH MONTHLY.-RENTAL RATES BY SUBAREA: 1988 Number of Location _ Units _ Median - Average Downtown/Old Town 116 $725 $739 $475 - $1 ,.200 Harbor/Bolsa Chica 52 $850 $8:;') . $625 - $1,250 North Central 91 $700 $740 $550 - $1 ,400 Southeast 37 $770 $779 $525 - s1 , 100 Totals 296 $750 $764 $475 - $1 ,400 Source: Orange County Register, Sunday Editions: 1/3/88, 4/3/88, 8/7/88, 12/4/88. - Compiled by Cotton/Beland/Associates, Inc. 4.5 Share of Region's Housing Needs State law requires jurisdictions to provide for their share of regional housing needs. The Southern .California Association of Governments (SCAG) has determined the 1989-1994 needs for the City of Huntington Beach, and has estimated the number of households which the City will be expected to accommodate during this period. Future housing needs reflect the number of new units needed in a jurisdiction based on households which .are expected to reside within the jurisdiction (future demand) , plus an adequate supply of vacant housing to assure mobility and new units to replace losses. These needs were forecast by the .1988 Regional Housing Needs Assessment (RHNA) , which considered on a regional and- local level : market demand for housing, employment opportuniti-es, avai.lability of suitable sites foi,4 public facilities, commuting patterns, type and tenure of housing need, and 'housing needs of farm workers. According to the model , housing to accommodate 6,228 households would need to be added to the City' s June 30, 1980 total households by .July* 1994 to fulfill the City' s share of regional housing needs. Based on the distribution of regional income, this total. can be furtter divided among HUD's .four income groups to identi.fy the types of households to be provided for as follows : TABLE 31A CITY OF HUNTINGTON BEACH 1989-1994 HOUSEHOLD NEEDS BY INCOME- GROUP Very Low (0-50% County median income 984' (15..8%) Low (50-80% County median income) 1 ,264 (20.3%) Moderate (80-1201/0' County median income) 1 ,370 (22.-0%) Upper (over 120% County median income) 2,.610 (41 .9%) lotal Households 6,228 SOUrce: SCAG Regional Housing Needs Assessment, June 1988 (Draft) 4-26 the intent of the future needs allocations by income group is to relieve Tower income impaction - the undue concentration of very 'low and low income households in a jurisdiction. Localities must fully address their existing needs in order for impaction avoidance goals to be achieved in the future period. 4.6 Housing in the Coastal Zone Housing in the coastal zone of Huntington Beach it,,ludes -some of the newest and most expensive homes in the City as well as areas of very old, deteriorated and substandard housing. In many areas, small summer homes, a legacy of the City's early heyday as a beach resort, adjoin modern apartment units. Similarly, the coastal population ranges from affluent families to young, single apartment dwellers preferring a beach orientation, to senior citizens on fixed incomes in older dwellings or mobile homes. Some neighborhoods are very homogenous; others have several different co-existing uses . Government Code Section 65588(d) requires the City to include in its housing element: 1) a review of the number of housing units approved for construction within the coastal zone after January 1 , 1982; 2) the number- of housing units for persons and families of low or moderate income provided in new housing developments either within the coastal zone or within three miles of the coastal zone; 3) the number of existing residential dwelling units occupied by persons and families of low or moderate income that have been authorized to be demolished or converted since January 1, 1982 in the coastal zone; and 4) the number of residential dwelling units for persons and families of low or moderate income that have been required for replacement of units. This section will address these requirements. Since January 1 , 1982, 73 dwelling units have been authorized to be demolished within the City's coastal zone. No units have been authorized to be converted. Through an active program of affordable housing development, the City has replaced all the units demolished with low/ moderate rental and for sale units developed throughout the City. Table 32 presents a comprehensive list of the affordable housing projects which have been developed either within the City's coastal zone, or within three miles of its boundary, since January 1 , 1982. In addition to the affordable units provided in these projects, 138 units affordable to low and moderate income households have been provided through the City' s density bonus program. Since January 1 , 1982, the following dwelling units have been 'constructed in the coastal zone: 612 single family homes ° 283 condominium units 177 apartment units 4-27 Y, s .f TABLE 32 CITY' OF HUNT.INGTON BEACH AFFORDABLEtHOUSING PROJECTS WITHT'N THREE M.ILES. OF :COASTAL ZONE Total Number Affordable Project Name of Unitts Uni L,----Location For Purchase: Huntington Bayshore. . 159 34 Lake and. Atlanta Pacific Ranch 558 100 Yorktown and Lake Seabridge 200 160 Adams and Beach Cabo Del Mar 230 .188 Warner and Bolsa Ghica .Harbor. Point 102 31 Warner and .Green For Rent: Bond issue for multi -family .units. 20% are s.e•tnaside at. affordable rental rates . Huntington Beach Breakers 342 . 85 Atlanta and Beach Rivermeadows 152 30 Magn6lia ,and Warner Huntington Village : 114 _27 'Springdale and Edinger (senior units.) Seabridge Villas 334 - 69 Beach and,�Adams Section 236 loans program for subsidizing sponsors of housing .-for moderate income, .elderly and disabled citizens . 1 Huntington Villa 198 ` 1.98 16000 Villa Yorba Other Below-Market Rental Projects Emerald Cove (senior 164 164 Talbert. and Beach Source: -City of Huntington -Beach, Department of Economic' Uevelopment — I 4 28 5.0 Employment Characteristics The need for housing within a given market area is largely dependent on the local economy and the number and types of jobs available. During the 1960s, Huntington Beach experienced a dramatic increase in new home construction, with many of these new homes appealing to households employed in the Los Angeles area. During this period, the Orange County economy began to grow and diversify from a concentration of predominantly industrial employers to include more ancillary aid service jobs. Several factors have contributed to limiting the horsing opportunities for households with lower incomes . Low density zoning and inflating land values have perpetuated the production of larger luxury homes in Huntington Beach and other neighboring communities. The failure of individual communities to provide a range of housing opportunities to match the regional economy causes longer commutes to work and the concentration of lower income groups in older areas of the County. Employment Projections An assessment of the prospective need for market rate housing must take into consideration the number and type of new jobs created in both the City and County. As presented in Table 33, Huntington Beach's employment base grew by 4,070 jobs between July 1980 and January 1984. During this period, only the Agriculture, Government, and Uncoded sectors of employment showed a decrease in the number of jobs. s As this table reveals, the thrust of Huntington Beach's economic activity is in the manufacturing and retail industries. Although these two sectors comprise more than half of the City's employment opportunities, Huntington Beach still maintains a very diversified employment base. During the four year period, the wholesale (42%) , finance/insurance/real estate (23%) , and mining (22%) industries all experienced substantial increases in the number of jobs created within the City. With the continued diversification of the local economy attracting a greater variety of non-skilled, semi-skilled, and professional workers, the City should endeavor to provide a range of housing opportunities and choice. 5-1 TABLE 33 CITY OF HUNTINGTON BEACh EMPLOYMENT TRENDS: 1980 & 1984 July January % Change Industry _ _ _ _ 1980 _ _1984 _ 1980-1984 Agriculture 425 -17.9% Mining 287 350 22.0% Construction 1 ,794 1 ,997 11 .3% Manufacturing 11 ,860 13, 177 11 . 1% Trans/Pub. Utilities 1 ,992 2,058 3.3% Retail Trade 10,088 11 ,444 13.4% Wholesale Trade 1 ,354 1 ,923 42.0% Fin/Ins/Real Estate 1 ,992 2,454 23.2% Services 6,585 7,634 15.9% Government 7,346 6,-422 -12.6% Uncoded 24 9 -62.5% TOTAL: 43,747 47,817 9.3% % Total County Employment 5.2% 5.2% -- Source: State Employment Development Department Jobs/Housing Balance Another measure of the balance of a community's employment opportunities with the needs of its residents is through a "jobs-housing balance" test. A balanced community would have a match between employment and housing opportunities enabling most residents to also work in the community. SCAG has identified as a goal for the Northwest Orange County subregion an employment to housing ratio of 1 .44. a Comparing the number of jobs in Huntington Beach in 1984 (47,817) to the number of housing units (66,335) indicates a job-housing ratio of .72 for the City. This low ratio would indicate Huntington Beach is housing-rich, and should increase its employment base to attain a more balanced community. However, since the City is located in a job-rich subregion (Northwest Orange County had a job-housing ratio of 1 .34 in 1984) which is projected to experience an even greater rate of employment growth through 2010, Huntington Beach's housing-rich characteristic helps achieve the desired jobs/housing balanro for the entire Northwest Orange County subregion. (a) Drat Growth Management Plan, Southern California Association of Governments, October 1988, Page VII-11 . 5-2 I 6.0 HOUSING CONSTRAINTS Ac.1.6 l or potential constraints on the provision and cost of housing affect. the development of new:_housing .and--,the maintenance of existing unit-, for all income levels Market, governmental`; infrastructurial , and environmental constraints to housing development- -in Huntington Beach are discussed below. 6. 1 Market Constraints The high cost of renting or buying adequate housi:;fi is the primary ongoing constraint to providing adequate housing in the City of Huntington Beach . :High.,cor.'istruction costs, labor costs, la-Id co�.ts and market financing constraints are all contributing to increases in the. availability of affordable housing. Construction Costs : . The single largest cost associated with building a new'house is the cost of building materials, comprising between- 40 ;o 50 percent of the sales price of a home. Overall construction costs rose over 30% percent between 1980 and 1988, with the rising costs of energy a significant contributor. Construction costs for wood frame, single- farnily. construction of average to good quality range from $40' to $55 per square- foot, custom homes and units with extra amenities running. somewhat higher: Costs for wood .frame, multi -family construction average around $4.2 per square foc,t, exclusive of parking. A reduction in amenities and. quality-_,of building materials (above. a minimum acceptability for health, safety, and adequate performance) could result in lower sales prices . Additionally, pre-fabricated, factory built housing may provide for lower priced housing by, redlucing .cons tru.ct•ion and labor costs. An additional factor related to construction costs is the number of units built at the same time. As the numb.er.of units developed increases, construction costs over the entire development are generally reduced based on economies of scale. This reduction -in costs i-s- of particular benefit when density bonuses are -utilized for the provision of affordable housing. Land: Land costs include the. cost of raw land, site improvements, and all costs associated with obtaining government approval-s.. The limited supply of dev,elopab'le vacant land in Huntington .Beach has accounted for a steady increase .i,n raw land costs . Residential land in Huntington Beach cost an average of $6ito $8 per square foot in 1984, whereas 1_a.nd costs in 1989 averaged between $10 and $13 per square foot on parcels with- single-family zoning and $20 and 525 per square foot on parcels zoned for multi -family development. It is estimated that these costs contribute 20 to 25 percent to the final sales price of a new home. Left alone, the rapidly escalating market price of land will tend to encourage mainly higher priced development. Higher density zoning could reduce the cost per unit of land, but land zoned for higher densities commands a higher market . price. For this reason, density bonuses rather than zoning changes may be the preferred vehicle for reducing land costs. 6-1 Labor Costs: Labor is the third most expensive component in building a house, constituting ai, estimated 17% of. the,.cost of building a single-family dwelling. The cost of union labor in the -,construction . t'rades has increased - steadily since April .1974. The cost of non-union labor, however, has not experienced such significant increases. Because of increased construction activity, the demand for skilled labor has increased so drastically that an increasing number of non-union employees are being hired. in addition to unionized employees , thereby lessening laoor costs . Financing: While interest rates have fallen i,,ore than 10 percent from their near 20 percent high in the early 1980s ,. they still have a substantial impact on housing costs which is felt by renters, purchasers and developers . It should be noted that some mortgage financing is variable gate, which offers an initial lower interest rate than. fixed financing. The ability of lending institutions to -raise rates to adjust for inflation may cause many existing households to overextend themselves financially, as well as returning to a situation where high financing costs substantially constrain the housing. market. An additional . obstacle for the first-time home buyer continues' tp be the 10-20% downpayment required by lending institutions. The median sales price of.a single-family home in Huntington Beach (1988) was $22:2,000. A $199,800 mortgage amortized over 30 years at. an interest rate of 10.5% would result in, monthly house payments of $7,827 . This level of payment eliminates Hunt-ington Beach' s very low, w and moderate income households from the for-sale housing market.. Condominiums .do, holyever, offer an alternative homeownership opportunity for many of the City's moderate income households': Interest rates are determined b national ioml y policies and:. ec.onom�c conditions, and there is little that local governinents' can. do. to affect these rates. Jurisdictions can,- however, offer interest' rate. write-downs to extend home purchase opportunities to lower income .hoitsehol.ds._ In addition,- government insured loan programs may be aVailable to reduce -" mortgage downpayment requirements. Profit Marketing and Overhead: Developer profits generally..comp.rise -- 10-15%.of the selling price of single-family homes and' sl_igtity .lower for condominiums.. However, in 'communities _l.ike Huntington Beacfi where the market, demand for housing is high, in comparison to the available . housing _ supply, and home purchasers often desire more amenities; developers are able to Command higher. pric'es and often realize greater margins ofprofit. Rising marketing and ,oVerhead costs have contributed to the rising costs of housing. . Inflation has spurred much of the increase' in_ marketing and overhead. Intense competition among developers has necessitated more advertising, more glamorous model homes and more expensive marketing strategies to attract buyers . 6-2 s r f 6.2 Governmental Constraints Housing affordability is affected by factors in both the private and public sectors. Actions by the City can have an impact on the price and availability of housing in the City. Land use controls, site improvement requirements, building codes, fees and other local programs intended to improve the overall quality of housing may serve as a constraint to housing development. Availability of Land The Land Use Element of the General Plan and corresponding zoning provide ' for a full range of residential types and densities dispersed throughout the City. Densities range from 0-4 units per acre in areas designated for Estate Residential to 35 units per acre in areas designated for High Density Residential . Table 34 presents the amount of acreage allotted to each residential land use category in the City's General Plan. As indicated by this table, over half the City's land area is planned for low density residential use, evidenced by the predominance of detached single-family homes in Huntington Beach. Considerably less acreage is planned for medium and high density uses, which characteristically provide condominium and apartment units. Three acres of land have been designated to accommodate a specific senior residential project. The areas of the City designated for Mixed Development and Planned Community allow for a mixture of residential uses, densities, and housing types. As an older City, much of the land designated for residential development is already built out. In addition, a great deal of the City's vacant land is subject to development constraints related to oil production, flood plain regulations and fragmented ownerships, thereby limiting their development in the near future. Of the City's total 725 vacant residential acres (refer to Section 7.1, Table 38) , only 479 acres can be considered unconstrained and suitable for development within the next five years. Additional residential development in the City will , however, be accommodated through several other means, including development on underutilized residential parcels, on non-residential -land, and on surplus school sites. Considering the potenti4l residential development from all these sources, a total of 6,927 additional dwelling units could be accommodated in Huntington Beach under the current General Plan and zoning (refer to Table 40) . SCAG has estimated a future housing need of 6,222 new units in the City through the year 1994. The Plan thus provides for a residential development capacity which is more than adequate to serve projected future housing demand. The Land Use Plan cannot therefore be interpreted as a constraint to the provision of affordable housing, particularly since 3,676 units are designated for higher density housing (Medium-High and High Density Residential ) , and can be more readily be priced to meet the needs of lower income households. 5 s 6-3 i TABLE 34 CITY OF HUNTINGTON BEACH RESIDENTIAL DEVELOPMENT CAPACITY OF LAND USE PLAN Total Acreage �o of Total Land Use Catagoory Permitted Density_ Designated Cit� Acreage Estate Residential 4 units/gross acre 287 1 .7% Low Density Res. 7 units/gross acre 1,645 50.3% Medium Density Res. 15 units/gross acre 1,,�68 11 .5% Med-High Density Res. 25 units/gross acre 42 0.2% High Density Resid. 35 units/gross acre 603 3.5% Senior Residential varies 3 . 1G Mixed Development varies 95 0.6% Planned Community varies 275 1 .6% TOl AL _ ------- —11 ,918—----- — 69.5% f �Huntin Source: City ogton Beach Planning Department. Fees and _Improvements: Various fees and assessments are charged by the City to cover the costs of processing permits and providing services and facilities, such as utilities, schools and infrastructure. Almost all of these fees are assessed through a pro rata share system, based on the magnitude of the project's impact or on the extent of the benefit which will be derived. However, these fees contribute to the cost of housing and may constrain the development of lower priced units. Certain fees could be waived or subsidized by the City for the provision of lower income and senior citizen housing. The majority of the Huntington Beach jurisdiction is highly urbanized with most of its necessary infrastructure, such as streets, electrical and water facilities, already in place. As such, the cost of land improvements is less than in undeveloped suburban or rural areas. Tables 35 and 36 present a comprehensive list of typical development fees associated with 4.5 unit/acre single family development and with a 30 unit/acre multi -family project. Development fees for single family construction are estimated at $10,399 per unit, whereas fees associated with multi -family construction are significantly lower at $4,827 per unit. This price differential reflects the fact that as land use densities increase, the proportion of the cost borne by each unit decreases. The most significant project development fees are school fees, parks and recreation fees, County sanitary sewer fees, and drainage fees. Building Codes and Enforcement: The City of Huntington Beach has adopted the State Uniform Building, Housing, Plumbing, Mechanical and Electrical Codes. These codes are considered to be the minimum necessary to protect IN, public health, safety and welfare. The local enforcement of these Codes does not. add significantly to the cost of housing. 6-4 Local Processing and Permit Procedures: Thy: evaluation and review process required by City procedures contributes to the co;t of housing in that. holding costs incurred by developers are ultimately manifested' in Uiv unit.' ti selling price. The review process in Huntington Beach is yovrrr►ed by two 'levels of decision-making bodies: the City Council and the Planning Commission. One potential way to reduce housing costs is to reduce the time for processing permits. Table 37 presents a compo-icon of average development processing times in Huntington Beach with seveyal, surrounding communities. As this table illustrates, development processing Times in Huntington Beach are at a minimum and compare favorably with other communities. As review times are already streamlined in the City, -cost savings from "fast track" processing would be minimal . Nonetheless, as land holding costs can run over $1 ,000 per unit for a 9 to 12 month period, the City may wish to consider priority development review processing for low and moderate income housing applications . 6-5 TABLE 35 CITY OF HUNTINGTON 'BEACH SUMMARY OF,DEVELOPMENT FEES FOR .TYPI'CAL LOW DENSITY RESIDENTIAL PROJECT Tyne of Fee ' Cost Per Unit Pl anni nq/Bui 1 di_ng Fees Tract Map $ .17.83 Conditional Use Permit '11 .67 Inspection 597 :60 Plan Check 388.44 Strong Motion 8.85. Library 250.00 Processing 10.00 School Fee 3, 1.50:00 Parks and Recreation 2,395.00 Electrical Permit 153.44 Mechanical Permit 58.32 Plumbing Permit 107.50 Fence Permit 45.,90 Subtotal $ 71'194.55 Public Works Development Fees Sewer - City .150.00 County 1 ;`5;00.00 Subtotal $ . 1650:00 Water -..60:,00 Drainage It"330.00 Grading •30.00 Street Plans ,45:00 Parcel Map - Phan Check ,NA Tract Map - Plan Check 90,-00 Subtotal $ 31:205.00 TOTAL $ 10,399. 55 Per .Unit . $ 46,7 97.98. Per -Acre Source-..- C.ity oT—Huntington. Beach Department of Community:.Development Calculations based on: (a) 2,100 square foot living- area/400;square foot garage. (b) 4 bedrooms, 30-lot subdivision . at --4.5 units/acre. (c) Type construction. (d) Building valuation = $126,380. -6-6 TABLE 36 CITY OF HUNTINGTON BEACH SUMMARY OF DEVELOPMENT FEES FOR TYPICAL HIGH DENSITY RESIDENTIAL PROJECT - T_y2e qj Fee — Cost Per Unit I'lanningq Building Fees Tract Map $ 13.00 Conditional Use P..rmit 11 .67 Inspection 346.80 Plan Check 225.42 Strong Motion 7.89 Library 130.00 Processing 10.00 School Fee 225.00 Parks and Recreation 1 ,662.00 Electrical Permit 122 .75 Mechanical Permit 46.66 Plumbing Permit 86.00 Fence Permit 8.46 Subtotal $ 2,895.65 Public Works Development Fees Sewer - City 150.00 County 1,500.00 Subtotal $ 1 ,650.00 Water 60.00 Drainage 200.00 Grading 5.00 Street Plans 7.00 Parcel Map - Plan Check NA Tract Map - Plan Check 10.00 Subtotal $ 1 ,932.00 TOTAL_ $ 4,827.65 Per Unit $144,829.50 Per Acre Source City of huntington Beach Department of Community Development Calculations based on: (a) 900 square foot living area/400 square foot garage. (b) 2 bedrooms, 1-lot subdivision at 30 units/acre. (0 Type V construction. (d) Building valuation - $52,580. 6-7 TABLE 37 DEVELOPMENT .PROCESS.ING UME-:IN HUNT,.,INGTON-. BEACH. •AND. 'SURROUND•ING COMMUNITIES j i n-::months) Hunt. Costa -' {,Newport Orange Beach _ Mesa Irvine Beach County General Plan Amendment 4 6-8 8-12 6�-8 .12-24 Zone .Change 1 . 75 6--8 6 4-6 3 -4 EIRs 4 1-2 4-6 1 3-4 Tentative Tracts 1 .75 6-8 6-12 6-12 1-2 ; . Site Plan Review 1 1-2 3-4 2-3 1 -2 (Staff) Site Plan Review 1 .5 1-2 3-4 2-3 1-2 (Comm. ) Plan Checking/ 2 1 1.-2 1 Building ,Permits Source: Huntington Beach Department,bf.-Community: Devel..o.pment; Cotton/Beland/Associates;. Inc. . i 6-8 6.3 Environmental and Infrastructure Constraints Portions of Huntington Bea e'h are exposed'Jo a=,va;riety of environmental hazards and resources-.which may�con st_ra in_ the-de ve-lopme,nt of lower priced units . In addition, deficiencies. e.xistrelate�d_ao the provision of infrastructure to service new residential development. Floodplain: Situated on a low-lying plain and bounded by the Santa And River, Huntington Beach faces significant floor hazard. Over half the City' s acreage, and approximately .70-80% of its r-csidentially designated acreage, falls within the Flood Hazard Zone as defined by the Flood Emergency Management Agency (FEMA) . FEMA regulations_require that all new residertial development be graded up above the 100-year flood elevation which ranges from approximately one to 11 feet. in the City. These restrictions on developm(:nt in the floodplain results in a reduction in -the number of units that can be built, increases the costs of construction, and slows down development. Oil Resources: Huntington Beach is historically an oil town. ;The numerous oil facilities currently operating in the City serve to reduce the amount of land currently available for development. While residential projects can sometimes be developed around producing wells, -often development must be postponed until oil production halts and facilities are abandoned (20 to 30 years) . The presence of oil facilities thus reduces the amount of acreage available for development. in the "near future and/or increases the cost of development. The City's Redevelopment Agency is currently working with a private oil company in developing an oil " consolidation site in downtown Huntington Beach. By consolidating the City' s oil wells and storage tanks onto a single site, the City' s "oil lots" will be opened up for development. Approximately 90 percent of the City's oil lots have been purchased by the oil company, with the goal of completing the consolidation; site within a two year period. In addition to the oil consolidation site, the City is working_:.with property owners to implement measures to mitigate constraints to deve.lopment. on sites with remaining oil facilities. These measures include buffering/screening existing oil islands, abandonment of wells, and creation of Specific Plans. Hazardous Waste: Because of the long history of oil recovery operations in Huntington Beach, some vacant residential properties contain hazardous wastes related to abandoned oil wells, oil pipelines, or- potentia.l.. gas risk. These contaminated sites will require clean up prior to their development, thus adding to the costs of developing on thes.e. site.s,.. Public Services and Facilities_: , As.---highly urbanized- commtfrf. ty; "most areas of the City are already served by sewer lines, water lines, streets, storm drains,_ telephone, e-lect.r.ica_l,. and____gas:l-ines . However, a major area of vacant land east of the Bolsa Chica designated for Residential Estate 6-9 has remained undeveloped due to the. lack of water and sewer lines and s'to�rm drains in the area. To ,facilitate development .in. thi$ area, the recently completed Ellis ..Golden West Specific Plan provides for necessary infrastructure improvements to be installed over-the next few years. This Specific Plan will also help to alleviate another constraint to development in this area, fragmented land ownership. M1 6­10 7.0 HOUSING OPPORTUNITIES This section evaluates the potential additional residential development which could occur under the City's General Plan and zoning on vacant and underutilized land. Vacant Sites Vacant land planned for residential developmen' is relatively scarce in Huntington Beach. Approximately 725 acres, or six percent, of the City' s total 11 ,918 residential acres are currently vacan%� . Under existing zoning and general plan designations, these residential acres could support a maximum buildout of 7,587 additional housing units. However, as discussed in the previous section on environmentally constrained lands , much of the City' s vacant residential land has been subject to development constraints related to oil production and fragmented ownerships. The City is actively working with property owners t:, remove these constraints by creating an oil consolidation site, developing specific standards to ensure compatibility between oil islands and residential uses and through implementation of Specific Plans. Through the City's activities, the following four areas which had previously been constrained due to oil production activities will now be available for residential development . These areas are illustrated in Figure 10, ••nd their dwelling unit capacity described below: Area #1: This parcel is approximately 19.69 acres in size and is designated for High Density Residential , permitting up to 35 dwelling units per acre. While the property has been historically utilized for oil production, the few oil wells remaining on the site are in the process of being removed. The property owner has submitted development plans to the City -or 331 attached townhome units on the site. Construction of these units is anticipated to begin in Spring 1990. Area #2: The Redevelopment Agency is currently working with a private oil company in developing an oil consolidation site in downtown Huntington Beach. Existing oil facilities located on the 20.72-acre Area #2 site are to be relocated on the oil consolidation site. Existing High Density Residential zoning on the site would perl!:it the development of approximately 725 multi-family dwelling units on the property. Area #3: This area consists of approximately 47.62 acres designated as Residential Estate Density (2 du/acre) . The site is located in the Holly-Seacliff Master Plan area adjacent the proposed linear park. While the area had previously been identified as constrained by oil production, the Master Plan provides for mitigation of oil constraints, through abandoning some wells and creating "oil islands" with remaining on-site oil facilities. By mitigating restrictions on development, approximately 95 single-family dwelling units will be able to be accommodated on this site. 7-1 • e;. J` • yLw 2f �o zV, ♦ E` � S•�<eada.ta:l , Aspal i• .:ice � - � 4 AREA 3 �.•� ,°` �Yr ''t I1�r11>,wI1'�1I11I�I1f 11A11�I1�vII}1r1},1111I1►/1}11111�.�. z . . _ •• '*, H,`,nrlon ",, .117111�1(1,11.11111 :� t`T v. SCON PROPEPROPE RTY BOLSA CHIC A� ;,.-� c alis b I },. •,�� I (,nn•v CIvA 16,n1=5��. ►.;�fll' M '•mot C' / s�1 qor �..• ♦..r.•........ .. f f I xi: w �Y AREA (ChClf North ...'l ,. •� PE!\!IlU?I 1' l(.C;'.I .'�'t!, :F:NI:� �l'�i.\liil .. n wL?' ;t�II:,1 it..ill):••.::N! Area #4: Similar to Area #3, this .38.48 acre .site. is.. located,.an the Holly-Seacliff.Master Plan, which. p.rovide,s fo'r :mitigati.on of.. exist.ing oil constraints. The Master. 'Pl:an..desi_gnafes`th;is site for an overall average dens ity"of seven' dwe'. l,.i_ng..unifs' per acre;,.;_pr..ov.idi.ng. for, a total of 269 dwelling units. . The Ci ty s.. working.-wi th the :p.roperty. owners to encourage a mix of single :and multi -family .family housing types on this site. .Through the City' s efforts, 126 acres of land ,,hich had previously been constrained by oil production activities will. br cE:ened up to development. this residential acreage will provide for an- increase in .dwelling units, ranging from low density estate housing,'to high density apartments 1 and condominiums . i Table 38 provides a breakdown of the number and type of additional i residential dwelling units which could be constructed in Huntington Beach under the General Plan. Of the City' s total 725 vacant residential acres , ` 478.8 acres can be considered unconstrained and available for development over the five-year period of the Housing Element. This acreage will support a maximum buildout .of 4,997 dwelling units, ranging in density from 2 to 35 units per acre'. Nearly half (45 percent) of the potential dwelling units are the Medium-High and High Density residential land use categories, providing opportunities for lower cost housing development. Approximately one-quarter of these potential units are designated for Medium Density Re-sidential , indicating a significant proportion of future residential growth will 'be in the form of duplexes and townhomes and lower density. apartments and condominiums. Single-family homes will comprise approximately one-quarter of the City's future residential growth. A recently-adopted Specific Plan for the Ellis West area will serve as a vehicle for consolidating land ownerships, providing for approximately 600 residential estate dwelling units. Underdeveloped Sites In addition to development on vacant lands, there is the potential for new residential development on sites which are currently developed at densities lower than those permitted under the General Plan and zoning. In the Townlot, Oldtown and Downtown areas, many of the areas designated for densities of 15 units/acre are currently developed with single-family and lower density multi-family uses . Recycling of these lower density i uses occurs when the intensity of use allowed in the zone more than offsets the costs of acquiring the improved site, demolishing the existing units, and constructing new higher density units. For the past several years, substantial recycling activity has been occurring in the Townlot, Oldtown and Downtown areas indicating that permitted densities are high enough to warrant recycling. Interestingly, .while City zoning permits densities up to 15' units -per acre in these areas, the market demand for single family homes has resulted in the majority of replacement units developed as single-family detached units. Single-family residential uses in the Townlot, Downtown and Oldtown areas are predominately developed on 50' x 115' and 25' x 115' sized lots. The recycling trend in these areas 7--3. I I I II j I ` ! 'TABLE 38 CITY OF .HUNTINGTON '.BEACH j VACANT LANDS-SUITABLE- FOR•_.RESIDENTIAG DEVELOPMENT: 1989 :Total Unconstrained -Vacant ':-Potential Vacant-.Potential ' Total Land Use Catagory Acreage DUs _ Acreage DUs DUs I Residential Estate 22.2.0 724 :182.6 605 . 12% I (2-4 du/ga) Residential Low Density 98:39 68$ 86.41 605 .12% , 7 du/ga) Residential Medium Dens. 159.-73 2,407, 77.91 1;-169 •24% 1 (15 du/ga) I Residential Medium-High 17.55 439 17 . 55 -'439 •: 9% (25 du/ga) Residential High Density 62'.05 2;172 62.05 1,.813 "36% i (35 du/ga) I I Planned .Community 165:28 1;157 52.-28 -366 7% ' (7 du/.ga) TOTAL -725'::00 7587 478.8 '. _4,997 : 100% Source: City *of Huntington Beach Community:DeVe•lopment-•-:Department; January -1989. { i i I . I I I I 1 7-4 I I has been to demolish the existing single-family structure, and replace the unit with either two or three single-family units. Table lA illL:strates the level of recent recycling activity, with 43 single-family units demolished in these areas in 1988, and 26 in the first six months of 1989. In order to estimate the net increase in residential development attributed to recycling over the five year period of the Housing Element, recycling activity over the past 18 months can I-)e applied to the 1989-1994 period. Replacement units can be conservatively Cstimated at a ratio of two-to-one, although it is likely many single unit:: will be replaced at a three-to-one ratio. Based on: these assumptions, it is estimated that the City will experience an annual recycling of 47 existing units, to be i replaced with a total of 94 new units. Applying this annual recycling rate.tg the five year period of the Housing Element translates to an estimated net increase in 235 single family units which can reasonably be expected to develop during the 7/89 - 6/94 period. It should be mentioned, however, that many of the older residences in these areas are identified as historically significant on a local survey, and their removal would need to be addressed under CEQA. TABLE 39 CITY OF HUNTINGTON BEACH RESIDENTIAL RECYCLING ACTIVITY (OLDTOWN, TOWNLOT, AND DOWNTOWN AREAS) Single-Family Units Recycled to Higher Densities 1988 Jan-June 1989 Oldtown 8 8 Townlot 32 17 Downtown 3 1 Total 43 26 Source: City of Huntington Beach Community Development Department 7-5 Second UrTi is Intensification of development in existing; restdenti.al areas could also t occur through the addition of "second units" .:on s i ngle-fami.l y lots.. Second units, or granny flats as they are commonly known, are dwelling; units constructed on the same parcel on-. wh.i.ch the primary single-family unit is located, providing independent living quarters which the homeowner- may�, rent out or provide for a family member o, other persons(s) . 'Second units provide a cost effective means *of se:rving.. ird:itional development } through the use of ex:i-sti.ng infrastructure, and' pcnvi.de- affordable housing for l-ow ,and moderate income sma-1 l� households. Second .units- have .the additional benefit of a-ll-owing. many, al'der persons. to remain im their- homes by providing additional- income and: security. The City has adopted an ordinance to facilitate -and r.egulate'the development of second units. 'Whil:e the. o-rdi.nan`ce- does -require a Conditional Use Permit for development of second units, reasonable. parking and other requirements have been established so as not to discourage their- development. Planning Department records indicate approxima-te:ly 24' applications for second units have -bee.n submitted to the City since 1,9.84', averaging about five applications per. year. Using this data to estimate the ,number of future second unit applications _suggests that appr:ox:imat:el-y 25 :new appl.ic-ations could- be expected. over the five year- pe.ri.od of. the Housing Element. Redevelopment Areas- Five redevelopment project areas have-. been .establ'.i:shed i-n :Huntington. .Beach: Huntington Center, Oakvi ew-,Ja-1 bert!`-Beach, Yorktown-Lake, .and. Main-Pier. Activities invol.vi'ng res.i.denti.0 -use include affordable senior housi.ng,, rehabil itati-on of-existing. units:, , restdential/commer_cial. mixe -use, and: market-rate single, family. and' multi ' family. development. Within the. five year period. of- thekHous i ng. Element, the City i-.s commited to working with the development commun-i.ty,.to. ach-feve an- additional •900+ . units_ in the Main Pier redevelopment-proj.ect, area. These—units wi-1 1 be developed on property- coritained,-within the following three_projects.: The Waterfront: Pursuant to the approved*Development Agreement for The Waterfront project, a_ total of 8941 high density, residential units (35 du/acre) may be constructed north of Walnut ,Avenue between -Beach Boulevard. and the northerly property. bounda;:y. Approximately hal-f' of the units (448) are to .be c,onstructed. in- the first phase; scheduled for completion in 1992, with an additional -one-quarter of the units (2.23) to be constructed in 199'4 as Phase 2-, thereby totaling 671 units- to be, developed within the five year time frame of the Hous-ing 'Element.. Pier Colony: This high density condominium project .(32 units/acre)- Iocated at Pacific Coast Highway and Second, Street is scheduled.° for completion in July 1.990. ' It wil-1 consi-st of 13:O,-one- and. two-bedroom condominiums.' 7-6 I i Main Pier Phase II: This mixed-use project located at Pacific Coast Highway and Sixth Street is currently in the planning stages.' At this time, 103 medium-high density units (25 units/acre) are proposed, with a scheduled completion date of June 1991 . Non-Residential Land In addition to land which is currently designatc!d for residential development, the City is in the process of redesiynating. a non-residential parcel to accommodate residential land uses. City Council and Coastal Commission have ammended the General Plan to redesignate the 40-acre Ascon property from Public, Quasi-Public, Institutional to Residential Medium Density. (The site's general location is identified on Figure 10) . The conceptual plan approved for, this property provides for a total of 600 dwelling units at an average density of 15 du/acre. The Ascon site has historically been utilized as a landfill , and will require site clean-up to remove contaminated soil . The applicant is in the process of preparing a remediation plan for soil clean-up, with site clean-up estimated to be complete within the next two years. Residential development on the site will immediately follow site clean-up, and can be expected to be completed by the end of 1992. Surplus Land Two former school sites are presently either under construction or in the entitlement stage for residential development in Huntington Beach. Crestmore Estates is a 52-unit low density single-family project which is now under construction. Heritage Village is a mixed development project which is still in the entitlement stage. It is a 15.2 acre, 520 unit residential/commercial project which is proposed at a density of 34 units per acre. The zoning will be a Specific Plan. In addition to these school sites, four other residentially-zoned school sites are being proposed for residential development by the school districts. Huntington Beach Elementary District has proposed 9.75 acres for residential on its Lebard School site, and Fountain Valley School District has advertised for bids on its 9. 10 acre Bushard School site. These two sites are both zoned R-1/7du/acre, providing fors the development of 132 dwelling units. Two other surplus school sites, Golden West College (6.81 acres) and Wintersburg High School (14 acres) , have been advertised for bids by the school districts. These sites are zoned single-family residential and residential -agriculture respectively, and could accommodate a total of 62 dwelling units. However, development under this twenty year old base zoning would be incompatible given the location of these sites along major arterials and surrounding higher densities. These sites will likely be rezoned to accommodate higher density residential development consistent with their setting. i i 7- 7 1 ' f Bo.l sa Chica •The';.Bolsa Chica area is another very significant housing opportunity for the• C.ity. The City has initiated annexation procedures for the 1,635 acre• vacant area known as the Bolsa Chica. While nearly. two-thirds o:f' the Bolsa Chica is comprised of a State .Ecological Reserve and wetland; the remaining 400-plus acres located immediately .adjacent exiting residential neighborhoods, are planned for residential dev,.lopment. Thb Bolsa- Chica is located within the -City's sphere of influence. --nd is surrounded on .a•11 . three sides by the City of Huntington• Beach- (r-efei• to Figure 11) . At -the mee.t,ing of October 2, 1989, the City. Council selected an outside law firm to' assist the City in preparation of-- a development/pre-annexation agree�ent for the Bolsa Chica area. In- addition, a memorandum of understanding on the .Bolsa Chica Environmental Impact Statement (EIS) was approved by Council at their meeting of. October 16, 1989. Property owners in the-Bolsa Chica area are limited to Signal Landmark Inc. ,. State Lands Commission, and the Metropolitan Water D-istrict;. all'. have been supportive-of- annexation .to:the City. The -anticipated -time frame for annexation includes completion of the Final EI.S by Fall 1990; with annexation to occur in late 1990 or early 1991-. Development. is expected to occur within 3 years and will include a minimum of- 3800. and a maximum of 5700 residential units. A coalition representing five interest groups (Orange County, State Lands, property owner Signal Landmark, Inc. , a citizens interest group Amigos de Bolsa Chica, and the City) .is projecting approximately 4400 residential units; Figure 11 provides a -' conceptual plan of development in the Bolsa Chica- as proposed by the coalition. The actual number of units is uncertain at this time- because the cost of restoring the approximately 1100 acres . of wetlands is not. known'. Some funding may be available from- the- Los Angeles and Long:.:Beach ports as a result of wetland mitigation requirements. Should this funding materialize, the restoration costs ,to the major landowner (Signal: Landmark, Inc. ) would .be reduced, thereby allowing development of fewer. units. City .services. appear adequate to serve the project development and the City_ f is participating- in the Bolsa Chica traffic modeling project to: insure that circulation concerns are addressed. Availability of Public Services and. Facilities As a highly urbanized community, public facilities are available to facilitate development throughout .Huntington Beach. All of the land designated for..residential use in the Low Density, Medium Density, Medium-High Density and High Density categories is- presently served .by sewer lines, water lines; streets, storm drains, telephone, electrical and gas lines. While areas-designated^ for Residential ' Estate are not currently served by sewer and water lines and storm drains, the Ellis 1 - 7-8 F iDEr\1IAL DENSIi+�S f }�•' .� UP TO 6.5 DU!AC }UP TO 125 CU/AC LINEAR t ,UP TO 18.0 DU!AC , j ! t� PARK / \`t I ESHA i�/��/{j f l >< f Di. !:�' _ :' _ �; WETLANDS - ACREAGE SUMMARY - s,�'.�.�`:`;,�t ESHA / LAND USE TYPE H S ,': `� < ✓' _' ��:i�f1E'. t _ OPEN SPACE RESIDENTIAL 4f23 �1' �� \ is�:tr::r -^k'.i7'�`::.:%'S }_� 114E AR PARE..HNOPEH SPACE E1049SIT- LINEAFi f+nP.K/ESHA 50.9 -._� � ,���,�Bi: r � _� - '1 7£S:GNA:cL`ROAD i3.'. `% _� \ a 1" — A J < %"- - ` .•. FLOLID CONTROL CHANNEL :3.2 � � f -A� af�~- •`V / ��.-- TOTAL 1535.3 �---- $� CR/ =`-�`i±c` WETLANDS � v y ;/• ^ I ESHA /... OPEN SPACE b WETLANDS ESHA / OPEN SPACE 1 WETLANDS . ESHA C .OPEN .�. ..i SPACE _:. _ /J �• LINEAR 1 /Ilft PARK / ESHA WETLANDS / ESHA / OPEN SPACE l \ INON-NAVIGABLE r -- I OCEAN CONNECTION SGURCi: VALE SPECK InYLOR. PACIFIC OCEAN F9 PACIFIC OCEAN North FIGURE 11 ROLSA CHICA RESIDEN1tA: OiVELOPMENT PLAN I i 1 , i Golden West Specific Plan provides for necessary improvements to be P� installed over the next few years. This Specific Plan will also help to alleviate another constraint to development in this area, fragmented land ownership. i Residential Development Potential Compared with Huntington Beach's Housing Needs As indicated in Section 4.5, the Regional Hous ;ng Needs. Assessment (RHNA) prepared by SCAG has identifed a future housing need for' Huntington Beach of .6;228 units to. be developed over the next five years (1989-1994) . Combining the residential development potential on vacant, underutilized, redevelopment, non-residential and surplus sites, an estimated 7,527 additional units could be developed: in the City (refer to Table 40) . This would indicate that the City's General Plan and zoning provide for a residential development capacity which is adequate to accommodate the ` City's share of regional housing needs. In addition, with annexation of E the Bolsa Chica, an. estimated 3,800 to 5,700 additional dwelling units could be accommodated in Huntington Beach. In terms of development opportunities for lower income households, approximately half of potential residential growth is allocated to higher density housing (Medium-High and High Density Residential ) , which can more readily be priced to meet the needs of Very Low and Low Income households. However, even at these higher densities, the City will need to offer incentives to private market developers to ensure. the provision of units affordable to Very Low and Low Income households. Condominium units will provide homeownership opportunities for some smaller, Moderate .Income households though ownership assistance will still be necessary to provide many df the City's Moderate Income households the option of home purchase. 7-10 TABLE 40 _ CITY, OF HUNTINGTON BEACH . POTENTIAL RESIDENTIAL DEVELOPMENT SUMMARY RESIDENTIAL DWELLING !!.4117 POTENTIAL Under- Land Use Vacant utilized Second Redevelop Nun-Resi- Surplus Category Land Land Units ment AreAs dential Land Land TOTALS Residential 605 14 619 Estate Residential 605 235 25 - 232 1 ,097 Low Density Residential 1 ,169 600 1 ,769 Medium Density Residential 439 103 542 Medium-High Density Residential 1 ,813 801 520 3, 134 High Density Planned 366 366 Community I TOTALS 4,997 235 25 904 600 766 7,527 i 7- 11 V 1 I 7.2- Energy Conservation y .. The City. has many opportunities to directly affect. energy use within its jurisdiction. Because a major proportion'. of energy consumed in a community is tied to on,�site uses, both directly (heating.; and.-cooling buildings` and indirectly (through` the- impact of d-evelopment patterns on activities such as transportation) , conservation pol'icies directed toward the resident:iAl development. process offer the cjreatesa-_ potential 'for the. City to reduce energy waste. In this section, building and l and use policies ar.e.'briefly revi.ewe.d to identify the steps the Ci t-y cou:l.d take to encourage:`energy conservatto , in residential development Building Conservation Standards- for New-Cons-truct on _ Energy conserving building standards for new construction (Tittle 24 of the California Administrative Code) have- been inn- effect in' the Stat-e since 1978 and were upgraded in 198-2. These standards can be met by any of three alternative approaches.: a' passive= solar bu.ilding, a well'-i-nsula.ted. non-solar building, and a building with an ac.tivelsolar domes:ti'c hot wafter system,. Current policy in Huntington Be.a.ch with, respect t�- energy- conservation building, standards. involves: enforcement. of Title 24 standards, as -mandated by the 'State. Modifying building standards represents the most. l og:i;c:a.l-; and' effective means of improving the energy e.ff,icie:ncy of bL iadi,ngs yet: to,. be bu,i•l-t.. Two strategies are available to--- the- Ci,ty,: to- reduce energy- u.se7 in newly constricted' housing: Minor-modifications to- building. codes and standard:s:. Features such- as: insulation in walls,. cei 1 i ng-s' and water heater.s., and!- weath`erstri ppi ng-, around doors and windows would s-i g.ni f i cantl y. reduce- enemy now wa-sted in- heating and cooling. A well-insulated' bu.il!d'ing is also more comfortable because there areJewer drafts.. Passive Solar Design: This approach involves using. the bull-ding structure itself as an energy source,. utilizing energy from the sun and. local climate to both heat and cool- build'i'ngs., Features which should be. incorporated include winter and. summer shading of south-facing,. glass, increased thermal mass of the structure to control temperature- v;ariations, and appropriate exterior- colors and vegetation to reduce a.rtiflcial cooling requirements. Estimates by the California- Energy Commission. in Orange County indicate that 85 to 90 perct t- of• the, heating,-and cooling needs of typical tract homes cou_ld: be met by. incorporating passive. solar designs. i 7-12 1 e Retrofitting Existing Housing While Title 24- and local building codes are effective means of conserving energy in new residences, they do not apply to the more than 70,000 residential units currently existing in Huntington Beach. Techniques reducing energy use in existing residences, termed weatherization or retrofitting, are therefore important opportuii't'ies for energy conservation. Weatherization typically involves the installation of attic insulation, caulking and weatherstripping around ucnrs and windows, water heater blankets, and devices to shade south-facing windows during hot summer months. Weatherization can reduce residential energy consumption by 30 to 60 percent without loss of personal comfort or change of lifestyle. Currently, the City is not involved in retrofitting existing housing units. Support for weatherization is being provided by the federally mandated Residential Conservation Service (RCS) , in which gas and electric companies offer home energy audits to eligible customers. Retrofit ordinances have to be evaluated with respect to their possible effect on the housing market. Although retrofitting may add to the price of housing, it could actually improve the ability of a buyer to qualify for a loan. This is because weatherized houses have lower utility bills, which is a consideration in the debt-income ratio used in decisions of grant loans. The City may also consider implementing a variety of techniques which would promote weatherization. • The City may follow the model being implemented in Santa Monica. The City of Santa Monica utilizes RCS funds to run its own conservation program which sends municipal energy conservation teams to different neighborhoods to install energy conserving devices. The program is offered for both multi-family and single-family residential structures. • The City could also adopt retrofit ordinances. Typically, such ordinances require the installation of specific, cost-effective r weatherization measures in residential buildings built prior to the 1978 building standards . Compliance with these ordinances would be required at the time of resale of the property. The fact that 40 percent of Huntington Beach's housing is rental property underlines the importance of a retrofit ordinance for the City. Owners of rental property have little incentive to voluntarily weatherize rental units. Renters, in turn, may shy away from energy savings investments in their homes since they may not occupy the property long enough to recover the costs involved. Renters are also legally prevented from improving their homes without permission of the owner. 7-13 i i i Active Solar Energy Conservation Another means of conserving residential energy As the_.-active solar energy ! s stem Active solar systems, 'in contrast .to .passive _sola'r design, invo:l've collecting the sun's energy'at one place (usually rooftop :collectors) and transferring -it mechanically (using ..pumps or fans) to a ' separate storage area. In Southern -California, active systems 'are generally too expensive for space heating but -a.re• -part-icuVarly well suited ,I to, heating hot .water for domestic, -- pool ,. and ,commercial use. i • ! State and Federal .Tax Credits- The- economics -of solar hot-water heating are closely tied to, state and federal,income tax credits. Currently, there are no- state tax credits I available for solar heating of spas. and pools. A solar tax credit-of.:50% is granted for the installation of solar systems in residential.:dwellings. There. J s a $3,000 limit on .the tax credit per solar system. Federal-tax credits are:­g.ranted for solar--space and hot- water..heating .but :not .for pool -heating. Homeowners as .well. .as members receive a '40 ,-percentetax credit for- the first $10,000. spent;--for a -solar system granted the-.-unit is built before..1977.. ..Landlords -are -eligible .for a, bus i-ne,ss-energy:,credi t of 15 percent for installation of -active so-l-ar systems in!-rental -units ` regardless of when they. are -construc•ted. The cost-benefit=ana•lysis -for,so.lar.. systems should also include -indirect economic benefits%:•such as—reduced-imports :of. nonrenewable•..fuels, :i.ncr.eased :energy self=sufficiency, reduced environmental,-pollution; -and` stimulation ` of local �employment Promoting Solaro-Development The City _has .various alternatives Jor.-promoting .sol-a.r_- dewelopment 'wit'• in its jurisdiction. More .-specifically;;-thdiCity may, give careful conseeration to .implementing -some !set W-.the follow programs: I I .Adoption of. solar systems. ordi-nances..: Numerous cities -.and-..counties throughout California :-have.:enacted ordinances -requird ng the..use -of solar energy as part of the heating system-for new .pools and spas. E .. Many communities have also .adopted ordinances requiring solar domestic hot .water heating. Mandating solar.. systems. thr..o.ugh •des.i-gn rev.i ew•process. By.. requ-i-:r i ng that solar systems be a .;condition for.approval -of subdivision .maps, local government would ensure that:rsolar.. be•.inco•rporat'ed -into .larger. !j housing developments, whi ch.:c.ompr.i se a majority-of -the. l a ger.•hous.i ng I developments in Huntington.-Beach. In-- comparison to :the implementation of a•-solar. systems ordinance, this appro:achiwould- be simpler and less - costly -to adminster, but wou.ld�-require more involvement by the .City's _planning staff. 1 � 7 --1 4 I i I The Municipal Solar Utility (MSU) concept. An MSU provides residents with financial assistance to facilitate the adoption of solar systems i.n the community. It can take one of three basic forms: 1) direct services offering a range of products and services to meet consumer needs; 2) broker MSU which matches the needs of residents with solar suppliers. This service offers low -interest loans, technical assistance, system maintenance, and links customers with private solar firms which sell and install systems; 3) a facilitator MSu which helps customer define their needs by offering consumer services, technical assistance, post-installation inspection, and complaint mediation. Land Use Controls The City can take the intiati've in. gui-ding local development and land use in a way that reduces energy use requirements substantially over the long run. This discussion covers three areas in which the City can exercise its power to ensure that land is developed in an energy efficient manner: solar access, residential design standards, and general land use guidelines . Solar Access: The lack of guaranteed direct access to sunlight is one of the major barriers to more wide-spread -use of solar heating. Ire 1978, the California State Legislature passed the Solar Rights Act and the Solar Shade Control Act which provide a firm basis for protecting solar access, but the burden of responsibility for doing so is placed on local governments. In an effort to ensure solar access within the jurisdiction, the City may give careful consideration toward implementing specific standards in its zoning, subdivision, environmental , and Site Plan Review regulations which will address the issue of adequate solar access for solar systems . Residential Design Standards: In 1980, the City adopted a Land Use Amendment (Amendment No. 80-1) to the General Plan that reflects Huntington Beach's commitment to energy-efficient residential design. Design features which would go toward meeting this policy include careful site orientation, passive solar architecture, and use of deciduous vegetation for shading. Three alternative approaches may be considered by the City in implementing energy efficient residential development: 1) provide incentives to developers who voluntarily incorporate energy efficiency in. their pro._sects; 2) adopt development standards that specify to what extent energy-efficient design must be incorporated into residential projects; and 3) facilitate the incorporation of energy concerns into the development review process by developing a comprehensive list of energy conservation criteria that could be used in evaluating the energy conserving potential of submitted plans. 7-15 t f s/9 a Fr City of Huntington Beach 1989 Housing Element Update Revised Draft Housing Element 44 �r m r FF77 City of Huntington Beach 1989 Housing Element Update Revised Draft Housing Element A)eA , �( m -Awl I CITY OF HUNTINGTON BEACH HOUSING ELEMENT UPDATE Revised Draft Housing Element May 1990 Prepared by: Cotton/Beland/Associates, Inc. 1028 North Lake Avenue, Suite 107 Pasadena, California 91104 555.00 r CITY OF HUNTINGTON BEACH HOUSING ELEMENT UPDATE TABLE OF CONTENTS Paqe 1 .0 INTRODUCTION 1 . 1 State Policy and Authorization 1-1 1 .2 Organization of the Housing Element 1-2 1 .3 Relationship of the Housing Element to Other General Plan Elements 1-3 1 .4 Public Participation 1-5 2.0 SUMMARY OF HOUSING NEEDS, CONSTRAINTS AND OPPORTUNITIES 2. 1 Summary of Housing Needs 2-1 2.2 Housing Constraints 2-6 2.3 Housing Opportunities 2-11 3.0 HOUSING PLAN 3. 1 Evaluation of Accomplishments Under 1984 Housing Element 3-1 3.2 Goals, Policies, and Program Actions 3-6 3.3 Housing Assistance Plan 3-30 3.4 Regional Housing Needs Assessment 3-32 3.5 Redevelopment Set-Aside Fund 3-33 3.6 Description of Implementing Programs 3-36 APPENDICES A. State Housing Element Requirements - B . Technical Data Report - December 1989 LIST OF TABLES Table Page 1 Vacant Lands Suitable for Residential Development 2-14 2 Residential Recycling Activity 2-15 3 Potential Residential Development Summary 2-21 4 Affordable Housing Developments 3-5 4A Housing Element Program Summary 3-6. 1 5 Rental Subsidy Needs of Lower Income Households 3-30 6 Lower Income Households to Receive Rental Subsidies 3-30 7 Units to be Assisted for Lower Income Households 3-31 8 1989-1994 Household Needs by Income Group 3-32 LIST OF FIGURES Figure Page 1 Previously Constrained Lands Suitable for 2-12 Residential Development 2 Bolsa Chica Residential Development Plan 2-19 r - 1.0 INTRODUCTION The Housing Element is intended to direct residential development and preservation in a way that coincides with the overall economic and social values of the community. The residential character of a city is largely dependent on the type and quality of its dwelling units, their location, and such factors as maintenance and neighborhood amenities . The Housing Element is an official municipal response to a growing awareness of the need to provide housing for all economic segments of the community, as well as legal requirements that housing policy be made a part of the planning process. As such, the Element establishes policies that will guide City officials in daily decision making and sets forth an action program designed to enable the City to realize its housing goals. 1. 1 State Policy and Authorization The California State Legislature has identified the attainment of a decent home and a suitable living environment for every Californian as the State's major housing goal . Recognizing that local planning programs play a significant role in the pursuit of this goal , and to assure that local planning effectively implements statewide housing policy, the Legislature has mandated that all cities and counties prepare a housing element as part of their comprehensive General Plans. Section 65302(c) of the Government Code sets forth the specific components to be contained in a community's housing element. Appendix A summarizes these State requirements and identifies the applicable sections in the Huntington. Beach Housing Element and Technical Data Report where these requirements are addressed.' Article 10.6 was added to the Government Code in 1980 and incorporates into law the Housing Element Guidelines promulgated by the California Department of Housing and Community Development (HCD) . The original Housing Element Guidelines were adopted on June 17, 1971 , and revised guidelines were adopted on November 17, 1977. The Government Code specifies the intent of the Legislature to insure that counties and cities actively participate in attaining the state housing goal , and sets forth specific components to be contained n a housing element. These include the identification and analysis of existing and projected housing needs, resources and constraints; a statement of goals, policies, quantified objectives, and scheduled programs for the preservation, improvement and development of housing; identification of adequate sites for housing; and adequate provision for the existing and projected needs of all economic segments of the community. State law requires Housing Elements to be updated at least every five years. The City has prepared the following updated Housing Element in compliance with the July 1 , 1989 deadline for jurisdictions within the SCAG region. 1-1 t 1.2 Organization of the Housing Element The Housing Element Guidelines require elements to include two basic components: 1 . An evaluation of the housing problem and an analysis of housing needs, indicating the capacity of the existing housing supply to provide all economic segments of the community with decent housing. 2. A housing program, consisting of two parts: a. A comprehensive problem solving strategy establishing local housing goals, policies, and priorities aimed at alleviating unmet need and remedying the housing problem; and b. A course of action which includes a specific description of the actions the locality is undertaking and intends to undertake to effectuate these goals, policies, and priorities. The Huntington Beach Housing Element update delineates the City's housing needs and sets forth a program of action in accordance with State law. This first section of the Element defines the intent of the Housing Element, describes its relationship to State directives and other general plan elements, and includes a description of the public participation and intergovernmental coordination utilized in its preparation. Section 2.0 of the Housing Element provides an overview of the present and projected housing needs of the City's households as defined by the Housing Element Technical Data Report, which serves as an appendix to the Element. This section also provides an analysis of potential constraints to meeting the City's identified housing needs, and an evaluation of opportunities that will further the development of new housing. Finally, the Housing Plan presented in Section 3.0 sets forth the City's quantified housing goals, policies and programs to address Huntington Beach's identified housing needs . 1.3 Relationship of the Housing Element to Other General Plan Elements The California Government Code requires that General Plans contain an integrated, internally consistent set of policies. When any one element of the general plan is revised, and especially when new policies and priorities are proposed, the other elements must be reviewed to ensure that internal consistency is maintained. This section examines the relationship of the Housing Element and its policies to the other elements of Huntington Beach's General Plan. Land Use The Housing Element is most affected by development policies contained in the Land Use Element, which establishes the location, type, intensity, and distribution of land uses throughout the city. In designating the total 1-2 r - acreage and density of residential development, the Land Use Element places an upper limit on the number and types of housing units constructed in the city. The acreage designated for industrial , commercial , and office professional uses creates employment opportunities; the presence of these jobs affects the demand for housing in the city. Ongoing modeling of the fiscal impacts associated with various land use types and proposed developments may warrant a reconsideration of the distribution of land uses throughout the city, especially in light of the Jarvis and Gann tax initiatives. Early indications reveal that there may be significant policy conflicts between providing a sufficient number and range of housing types and maintaining a balanced local economy and an adequate level of municipal services. The adopted policies and priorities of both the Housing and Land Use Elements must be carefully balanced to maintain internal consistency in the General Plan. Open Space and Conservation Policies contained in the Open Space and Conservation Element call for the preservation and protection of the city's natural environment through the conservation of significant open space areas, acquisition of land for recreation and parks, and restricted development in hazardous areas and areas utilized for the production of natural resources. These policies affect both the amount of land available for housing by designating permanent open space areas and the cost of housing by requiring land dedication and/or development fees for the acquisition and maintenance of public open space areas. Circulation The Circulation Element calls for the development of a system of arterial highways that safely and efficiently accommodates traffic generated by adopted land uses. At the same time, the element seeks to minimize the adverse environmental and aesthetic effects of the road network and traffic on sensitive land uses such as residential areas. By providing for a convenient public transportation system and a network of bicycle, pedestrian, and equestrian trails, the Circulation Element attempts to create a satisfying living environment for residents of Huntington Beach. While the cost of producing new housing is affected by the City's street design standards and arterial dedications requirements, these standards are not excessive and do not unduly constrain affordable housing. Noise The Noise Element contains policies aimed at reducing the impacts of urban noise on residents, workers, and students in the city. Sources of noise include freeway and arterial traffic, construction and oil -related machinery, and aircraft. Residential development in areas with high noise impacts is discouraged unless adequate noise attenuation features are included. Special construction methods or increased landscaping to reduce noise impacts create a more satisfying living environment but also add to the cost of housing. 1-3 Seismic Safety The Seismic Safety Element identifies geologic and flood hazards in the city. Although development within identified hazard areas is not prohibited altogether, special construction techniques are required to ensure that structures will remain safe in the event of a disaster. Unstable soil conditions in certain areas of the city require additional grading, fill , and compaction before development is allowed. In addition to the extensive fault system that underlies Huntington Beach, the majority of the city is located within the floodplain of the Santa Ana River. The National Flood Insurance Act of 1968 requires affected localities to adopt a program of floodplain management to prevent loss of life and property in the event of a major flood. Provisions of this program range from prohibiting development in severe hazard areas and requiring modification of structures or special construction practices to securing bonds for the construction, improvement, and maintenance of flood control and drainage facilities. All of these actions add to the cost of housing in the city; however, they are required if the City is to provide an acceptable level of public safety. Scenic Highways The Scenic Highways Element establishes local scenic routes and landscape corridors along several arterial highways in the city. The intent of these designations is to establish and maintain aesthetic visual resources along major transportation routes, implemented through landscaping programs, grading, development, and signing controls, utility undergrounding, and architectural review. While the scenic highways program enhances the living environment, the costs to the City and private developers to implement the program are eventually reflected in increased housing costs. Community Facilities The Community Facilities Element provides direction for the provision of community facilities needed to serve existing and proposed development in the City in a coordinated and cost efficient manner. The element contains pertinent data regarding the status of the City's major capital facilities. Community facilities, particularly those related to health and safety, are a prerequisite to any new development. The availability and condition of existing community facilities may impact the provision of housing, espec'ially.affordable housing, since necessary infrastructure improvements will increase housing costs. By directing the location and timing of new capital facilities, the City can affect the availability of sites for new housing. By investing public money in existing neighborhoods, the City may help stabilize and revitalize them, thus preserving and upgrading the available housing stock. 1-4 Coastal The Coastal Element contains the land use designations and policies adopted by the City to implement the California Coastal Act of 1976. The Coastal Element, which is the Land Use Plan portion of the City's Local Coastal program, has been certified in geographic part by the California Coastal Commission. Although the provision of affordable housing is no longer required under the Coastal Act, the Land Use Plan itself may affect the cost and desirability of housing within the entire City. Low and moderate income housing within the coastal zone is currently addressed by Section 65590 of the Government Code. The Technical Data Report to the Housing Element discusses the housing stock within the Huntington Beach Coastal Zone and recent housing developments under Section 65590. 1.4 Public Participation Section 65583(c) (5) of the Government Code states that "The local govenment shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort. " Upon completion of a Draft Housing Element, the City advertised its availability for public review. The Draft Housing Element and Technical Data Report were made available to the public at City Hall free of charge. The City also circulated draft elements to housing interest groups for comment. The City Council appointed a Housing Committee in October 1988 for the purpose of working with city staff to develop an overall program strategy for expenditure of the City's 20% housing set-aside fund, as well as reviewing other housing issues. The Housing Committee consisted of three City Council/Redevelopment Agency members, and four City residents appointed by the remaining four Council members. Citizen representatives included individuals experienced in both non-profit and for-profit housing development, and with CDBG programs. Based on the Committee's knowledge of housing issues facing the community, they also acted as the reviewing body for the Housing Element and Technical Data Report. City staff met with the Committee on several occasions to receive their input on the major housing issues facing the community, and to refine Housing Element policies and programs to address identified housing needs. Prior to public hearings, public participation was provided for in a special Housing Element workshop conducted by City staff. The purpose of the workshop was to review the findings of the Element and Technical Data Report, and to receive community input on proposed policies and programs. The workshop was advertised both in the local newspaper, as well as through direct mailings to interested community members. 1-5 r 1 Public participation is also provided in the form of public hearings. Following the preparation of the Draft Housing Element and its review by the Housing Committee and the public, the Planning Commission conducts public hearings on the Element. Subsequent to Planning Commission action and recommendations to City Council , further public hearings will be held at the City Council level . All public hearings are advertised in the newspaper, with notices mailed to interested citizens and community groups. Once the public hearings and related reviews are completed, the City Council may formally adopt the Element. 1-6 2.0 SUMMARY OF HOUSING NEEDS, CONSTRAINTS AND OPPORTUNITIES As part of this Housing Element update, a separate Technical Data Report was prepared which documents the population, .socio-economic, and housing characteristics of the City of Huntington Beach. This background report helped to define the City's current and projected housing needs and to provide direction in the development of goals, policies and programs to address these needs in the Housing Element. This section of the Housing Element summarizes the findings of housing need from the Technical Data Report. In addition, certain constraints which may discourage the construction of new housing are evaluated, as well as opportunities that will further the development housing in the community. 2. 1 Summary of Housing Needs A number of factors will influence the degree of demand or "need" for new housing in Huntington Beach in coming years. The four major "needs" categories considered in this Element iWlude: - Housing needs resulting from increased population growth, both in the City and the surrounding region; - Housing needs resulting from the deterioration or demolition of existing units; - Housing needs that result when households are paying more than they can afford for housing; - Housing needs resulting from the presence of "special needs groups" such as the elderly, large families, female-headed households, households with a handicapped person, and the homeless. 2. 1.1 Population Growth The 1988 population of the City of Huntington Beach was nearly 188,000 persons, making it the third largest city in Orange County behind only Anaheim and Santa Ana. During the 1980's, Huntington Beach experienced an average annual growth rate of 1 .25%, somewhat below that experienced County-wide. The City's slowing population growth rate is indicative of the fact that Huntington Beach is an older, more built out community with limited vacant land available for residential development. Growth projections through the year 2010 indicate a further slowing in the City's population growth to an average annual rate of .63%. As discussed under Housing Opportunities, much of the City's future growth will be accommodated through the recylcing of existing residential and non-residential land uses, and through the removal of development constraints on vacant parcels related to oil production, floodplain regulations and fragmented ownerships. 2-1 2.1 .2 Substandard Units The accepted standard for housing rehabilitation needs is after 30 years. In 1988, only seven percent of Huntington Beach's housing stock was over 30 years old. However, in ten years, nearly half of the City's housing will be over 30 years of age, indicating the need for continued housing maintenance to prevent widespread housing deterioration. Existing substandard housing in Huntington Beach is primarily concentrated in the City' s older residential areas. The City has targeted seven neighborhoods characterized by high levels of housing deterioration for rehabilitation assistance. Through its Community and Neighborhood Enhancement Program, the City offers low interest rehabilitation loans as an incentive for unit upgrading, and in addition provides needed public improvements to these neighborhoods . The Housing Element sets forth policies and programs to encourage the maintenance of the City's housing stock. These policies include: - Encourage the maintenance of the existing housing stock to prevent unit deterioration. - Encourage the rehabilitation of substandard and deteriorating housing. - Promote the removal and replacement of substandard units which cannot be rehabilitated. 2. 1 .3 Affordability State and Federal standards for housing overpayment are based on an income-to-housing cost ratio of thirty percent and above. Households paying greater than this amount will have less income left over for other necessities, such as food, clothing and health care. It is recognized, however, that upper income households are generally capable of paying a larger proportion of their income for housing, and therefore estimates of housing overpayment generally focus on lower income groups. The Regional Housing Needs Assessment (RHNA) prepared by SCAG identifies housing overpayment for the City's lower income households. (a) According to the RHNA, an estimated 10,565 (or 45 percent) of Huntington Beach' s lower income households were paying more than 30 percent of their income on rent or mortgage payments as of January 1 , 1988. Of these overpayers, 5,961 are classified as Very Low Income, and 4,604 are Low Income. (a) Lower income households are defined as households whose total gross income is less than 80 percent of the County median. "Lower income" encompasses both Very Low and Low Income groups. 2-2 The distinction between renter and owner housing overpayment is important because, while homeowners may overextend themselves financially to afford the option of home purchase, the owner always maintains the option of selling the home. Renters, on the other hand, are limited to the rental market and are generally required to pay the rent established in that market. According to the RHNA, of the total 10,565 lower income households identified as overpayers in Huntington Beach, 8,638 were renter households and only 1 ,927 were owner households. . This discrepancy is largely reflective of the tendency of renter households to have lower incomes than owner households. 2. 1.4 Special Needs Groups Certain segments of the population may have a more difficult time finding decent, affordable housing due to special circumstances. In Huntington Beach, these "special needs" households include the elderly, handicapped persons, large families, farmworker households, female headed households, and the homeless. Elderl.y: The special needs of many elderly households result from their lower, fixed incomes, physical disabilities, and dependence needs . An estimated 14,266 elderly (65 years and over) resided in Huntington Beach in 1988, representing 7.6 percent of the total population. The proportion of elderly can be expected to increase as those persons between the age of 35 and 64 grow older. Many elderly households in the City are of lower income, and of these the City' s 1988 Housing Assistance Plan (HAP) estimates 1 ,226 are in need of rental assistance. Escalating housing costs, particularly in the rental market, severely impact housing affordability for the elderly, who are usually on fixed incomes. The housing needs of the elderly can be addressed through the provision of smaller units, second units on lots with existing homes, shared living arrangements, congregate housing, . and housing assistance programs. Handicapped: Physical handicaps can hinder access to housing units of traditional design as well as limit the ability to earn adequate income. Huntington Beach' s Housing Assistance Plan identifies 1,444 low and moderate income households that have at least one handicapped person, representing approximately .8 percent of total households within the City in 1988. The City' s handicapped can be classified according to the following household groups: City of Huntington Beach Handicapped Households Elderly 86 Single, 425 non-elderly Small Family 749 Large Family 184 Total Households 1,444 Source: City of Huntington Beach, Housing Assistance Plan, 1988-1991 2-3 � 9 Housing opportunities for the handicapped can be maximized through housing assistance programs and providing design features such as widened doorways, ramps, lowered countertops, single-level units, and ground floor units. The Housing Element sets forth policies to implement State standards for the provision of handicapped accessible units in new development and, in addition, to encourage housing which is provided for the handicapped to be located in close proximity to public transportation and services . Large Families/Unit Overcrowding: Large families are identified as a group with special housing needs based on the limited availability of adequately sized, affordable housing units. Large families are often of lower income, frequently resulting in the overcrowding of smaller dwelling units and in turn accelerating unit deterioration. Approximately 9.8 percent of the City's households in 1988 had five or more members, translating to 6,878 households. The demand for larger units in the City can be expected to increase based on the City's growing ethnic population and the desire/need of many of thee ethnic groups to cohabitate with extended families. The housing needs of large households can be addressed through the provision of affordably-priced larger housing units and through rental assistance programs . The City has coupled rental assistance with its rental rehab program to offer larger units to overcrowded households, and in addition offers single-family rehabilitation loans for room additions to alleviate overcrowding. Female-Headed Households: Female-headed households tend to have low incomes, thus limiting housing availability for this group. In 1988, an estimated 9 percent, or 6,316, households were headed by a woman in Huntington Beach. The City's Housing Assistance Plan estimates that 4,268 female-headed households (67/) in Huntington Beach have dependent children under 18 years of age. Thus, providing housing opportunities for this group relates both to affordability and services related to the care of children. Farmworkers : The special housing needs of many farmworkers stem from their low wages and the insecure nature of their employment. Those persons working in the farming industry have been counted by the 1980 U.S. Census and are also included in the City' s 1984 Housing Element. According to the Census, approximately one percent of the total labor force in Huntington Beach was employed in farming, forestry, or fishing. According to the City's Housing Element, there were 878 persons employed as farmers residing in the City in 1984, or .6 percent of those persons aged 18 and over. Housing opportunities for farmworkers can be enhanced by expanding the City's affordable housing stock. Homeless: Throughout the country, homelessness has become an increasing problem. Factors contributing to the rise in homeless include the general lack of housing affordable to low and moderate income persons, increases in the number of persons whose incomes fall below the poverty level , reductions in public subsidy to the poor, and the de-institutionalization of the mentally ill . Based on estimates by the Orange County Homeless Issues Task Force, the County's homeless population consists of 2-4 approximately 8,000 to 10,000 individuals, some of whom are located in Huntington Beach. As a beach community, the City attracts numerous individuals who congregate along the beach, under the pier, by the Santa Ana River bed, and in Central Park. The Episcopal Service Alliance (ESA) , an ecumenical organization in Huntington Beach which provides social services for homeless, reported for February 1989 the number and types of homeless which sought their assistance. As the figures below reveal , the majority of homeless seeking assistance are couples with children (195) and lone females with children (152) . These totals, however, represent only a portion of the actual number of homeless in the City. ESA indicates that as referrals of the service continue to spread, the total number of homeless reported continues to increase every month. City of Huntington Beach Homeless Seeking Assistance Total Type Individuals Homeless with no shelter 17 Homeless in Motels 21 Homeless and Mentally Ill 3 Homeless Families 24 Couples 12 Couples with children 195 Lone Females 16 Lone Females with children 152 Lone Males 37 Lone Males with children 4 Total 481 Source: Episcopal Service Alliance, February 1989 The City currently operates a program to provide housing assistance, along with other social services, to single parents who are currently homeless or at risk of becoming homeless. In addition, the Housing Element calls for the City to provide financial assistance to groups which provide services to the area's homeless population including a new youth shelter set to open in the City. As part of the current update to the City's Zoning Ordinance, appropriate zones will be identified for the development or rehabilitation of transitional housing and emergency shelters for the homeless. 2=5 2.2 Housing Constraints Actual or potential constraints on the provision and cost of housing affect the development of new housing and the maintenance of existing units for all income levels. Market, governmental , infrastructural , and environmental constraints to housing development in Huntington Beach are discussed below. 2.2. 1 Market Constraints The high cost of renting or buying adequate housing is the primary ongoing constraint to providing adequate housing in the City of Huntington Beach. High construction costs, labor costs, land costs and market financing constraints are all contributing to increases in the availability of affordable housing. Construction Costs: The single largest cost associated with building a new house is the cost of building materials, comprising between 40 to 50 percent of the sales price of a home. Overall construction costs rose over 30% percent between 1980 and 1988, with the rising costs of energy a significant contributor. Construction costs for wood frame, single- family construction of average to good quality range from $40 to $55 per square foot, custom homes and units with extra amenities running somewhat higher. Costs for wood frame, multi-family construction average around $42 per square foot, exclusive of parking. A reduction in amenities and quality of building materials (above a minimum acceptability for health, safety, and adequate performance) could result in lower sales prices. Additionally, pre-fabricated, factory built housing provides for lower priced housing by reducing construction and labor costs. An additional factor related to construction costs is the number of units built at the same time. As the number of units developed increases, construction costs over the entire development are generally reduced based on economies of scale. This reduction in costs is of particular benefit when density bonuses are utilized for the provision of affordable housing. Redevelopment set-aside monies have been allocated to a "private market leveraging" program in which the City writes down development costs in exchange for affordable units. Land: Land costs include the cost of raw land, site improvements, and all costs associated with obtaining government approvals. The limited supply of developable vacant land in Huntington Beach has accounted for a steady increase in raw land costs. Residential land in Huntington Beach cost an average of $6 to $8 per square foot in 1984, whereas land costs in 1989 averaged between $10 and $13 per square foot on parcels with single-family zoning and $20 and $25 per square foot on parcels zoned for multi-family development. It is estimated that these costs contribute 20 to 25 percent to the final sales price of a new home. Left alone, the rapidly escalating market price of land will tend to encourage mainly higher priced development. Higher density zoning could reduce the cost per unit 2-6 of land, but land zoned for higher densities commands a higher market price. For this reason, density bonuses rather than zoning changes may be the preferred vehicle for reducing land costs. The Housing Element identifies the use of land assemblage and write-down as an incentive for the provision of affordable units. Labor Costs: Labor is the third most expensive component in building a house, constituting an estimated 17% of the cost of building a single-family dwelling. The cost of union labor in the construction trades has increased steadily since April 1974. The cost of non-union labor, however, has not experienced such significant increases. Because of increased construction activity, the demand for skilled labor has increased so drastically that an increasing number of non-union employees are being hired in addition to unionized employees, thereby lessening labor costs. Financing: While interest rates have fallen more than 10 percent from their near 20 percent high in the early 1980s, they still have a substantial impact on housing costs which is felt by renters, purchasers and developers. It should be noted that some mortgage financing is variable rate, which offers an initial lower interest rate than fixed financing. The ability of lending institutions to raise rates to adjust for inflation will cause many existing households to overextend themselves financially, as well as returning to a situation where high financing costs substantially constrain the housing market. An additional obstacle for the first-time home buyer continues to be the 10-20% downpayment required by lending institutions. The median sales price of a single-family home in Huntington Beach (1988) was $222,000. A $199,800 mortgage (10% down payment) amortized over 30 years at an interest rate of 10.5% would result in monthly house payments of $1 ,827. This level of payment eliminates Huntington Beach's very low, low and moderate income households from the for-sale housing market. Condominiums do, however, offer an alternative homeownership opportunity for many of the City's moderate income households . Interest rates are determined by national policies and economic conditions, and there is little that local governments can do to affect these rates. Jurisdictions can, however, offer interest rate write-downs to extend home purchase opportunities to lower income households . Through its mortgage revenue programs, the City provides interest rate write-downs to benefit Low and Moderate Income households. A special multi -family unit interest rate write-down program is being developed by the City to conserve existing Federally-subsidized housing projects. Finally, the City is developing a shared equity program for downpayment assistance to first-time homebuyers. Profit, Marketing and Overhead: Developer profits generally comprise 10-15% of the selling price of single-family homes and slightly lower for condominiums. However, in communities like Huntington Beach where the market demand for housing is high in comparison to the available housing supply, and home purchasers often desire more amenities, developers are able to command higher prices and often realize greater margins of profit. 2-7 Rising marketing and overhead costs have contributed to the rising costs of housing. Inflation has spurred much of the increase in marketing and overhead. Intense competition among developers has necessitated more advertising, more glamorous model homes and more expensive marketing strategies to attract buyers. 2.2:2 Governmental Constraints Housing affordability is affected by factors in both the private and public sectors. Actions by the City can have an impact on the price and availability of housing in the City. Land use controls, site improvement requirements, building codes, fees and other local programs intended to improve the overall quality of housing may serve as a constraint to housing development. Land Use Controls : As indicated in the Section on Housing Opportunities , an estimated 4,997 new residential dwelling units could be developed on unconstrained vacant lands in Huntington Beach under the General Plan. Additional residential development in the City will , however, be accommodated through several other means, including development on under- utilized residential parcels, on non-residential land, and on surplus school sites . Considering the potential from all these sources, a total of 7,527 additional dwelling units could be accommodated in Huntington Beach. SCAG has estimated a future housing need of 6,228 new units in the City through the year 1994. The Plan thus provides for a residential development capacity which is more than adequate to serve projected future housing demand. The Land Use Plan cannot, therefore, be interpreted as a constraint to the provision of affordable housing, particularly since 3,676 units are designated for higher density housing (Medium High and High Density Residential ) and can more readily be priced to meet the needs of lower income households. Fees and Improvements: Various fees and assessments are charged by the City to cover the costs of processing permits and providing services and facilities, such as utilities, schools and infrastructure. Almost all of these fees are assessed through a pro rata share system, based on the magnitude of the project' s impact or on the extent of the benefit which will be derived. However, these fees contribute to the cost of housing and may constrain the development of lower priced units . The Housing Element calls for the City to monitor all regulations, ordinances, departmental processing procedures, and residential fees related to rehabilitation and/or construction to assess their impact on housing costs. The City' s Senior Citizen Residential Suffix Zone establishes reduced development standards (e.g. , parking requirements) to lessen the cost of developing housing for the elderly. Building Codes and Enforcement: The City of Huntington Beach has adopted the State Uniform Building, Housing, Plumbing, Mechanical and Electrical Codes. These codes are considered to be the minimum necessary to protect the public health, safety and welfare. The local enforcement of these codes does not add significantly to the cost of housing. 2-8 Local Processing and Permit Procedures: The evaluation and review process required by City procedures contributes to the cost of housing in that holding costs incurred by developers are ultimately manifested in the unit' s selling price. One potential way to reduce housing costs is to reduce the time for processing permits . As review times are already streamlined in the City, cost savings from "fast track" processing would be minimal . Nonetheless, as land holding costs can run over $1 ,000 per unit for a 9 to 12 month period, the City is considering developing an expedited processing procedure for residential projects with an affordable component. 2.2.3 Environmental and Infrastructure Constraints Portions of Huntington Beach are exposed to a variety of environmental hazards and resources which may constrain the development of lower priced units . In addition, deficiencies exist related to the provision of infrastructure to service new residential development. Floodplain: Situated on a low-lying plain and bounded by the Santa Ana River, Huntington Beach faces significant flood hazard. Over half the City' s acreage, and approximately 70-80% of its residentially designated acreage, falls within the Flood Hazard Zone as defined by the Flood Emergency Management Agency (FEMA) . FEMA regulations require that all new residential development be graded up above the 100-year flood elevation which ranges from approximately one to 11 feet in the City. These restrictions on development in the floodplain results in a reduction in the number of units that can be built, increases the costs of construction, and slows down development. Oil Resources: Huntington Beach is historically an oil town. The numerous oil facilities currently operating in the City. serve to reduce the amount of land currently available for development. While residential projects can sometimes be developed around producing wells, often development must be postponed until oil production halts and facilities are abandoned (20 to 30 years) . The presence of oil facilities thus reduces the amount of acreage available for development in the near future and/or increases the cost of development. The City's Redevelopment Agency is currently working with a private oil company in developing an oil consolidation site in downtown Huntington Beach. By consolidating the City's oil wells and storage tanks onto a single site, the City' s "oil lots" will be opened up for development. Approximately 90 percent of the City' s oil lots have been purchased by the oil company, with the goal of completing the consolidation site within a two year period. In addition to the oil consolidation site, the City is working with property owners to implement measures to mitigate constraints to development on sites with remaining oil facilities. These measures include buffering/screening existing oil islands, abandonment of oil wells, and creation of Specific Plans. 2-9 Hazardous Waste: Because of the long history of oil recovery operations in Huntington Beach, some vacant residential properties contain hazardous wastes related to abandoned oil wells, oil pipelines, or potential gas risk. These contaminated sites will require clean up prior to their development, thus adding to the costs of developing on these sites. Public Services and Facilities: As a highly urbanized community, most areas of the City are already served by sewer lines, water lines, streets , storm drains, telephone, electrical and gas lines. However, a major area of vacant land east of the Bolsa Chica wetlands area is designated for Residential Estate has remained undeveloped due to the lack of water and sewer lines and storm drains in the area. To facilitate development in this area, the recently completed Ellis Golden West Specific Plan provides for necessary infrastructure improvements to be installed over the next few years. This Specific Plan will also help to alleviate another constraint to development in this area, fragmented land ownership. 2-10 2.3 Housing Opportunities This section evaluates the potential additional residential development which could occur under the City's General Plan and zoning on vacant and underutilized land. 2.3: 1 Vacant Sites Vacant land planned for residential development is relatively scarce in Huntington Beach. Approximately 725 acres , or six percent, of the City' s total 11 ,918 residential acres are currently vacant. Under existing zoning and general plan designations, these residential acres could support a maximum buildout of 7,587 additional housing units . However, as discussed in the previous section on environmentally constrained lands, much of the City's vacant residential land has been subject to development constraints related to oil production and fragmented ownerships. The City is actively working with property owners to remove these constraints by creating an oil consolidation site, developing specific standards to ensure compatibility between oil islands and residential uses and through implementation of Specific Plans . Through the City's activities, the following four areas which had previously been constrained due to oil production activities will now be available for residential development. These areas are illustrated in Figure 1 , and their dwelling unit capacity described below: Area #1 : This parcel is approximately 19.69 acres in size and is designated for High Density Residential , permitting up to 35 dwelling units per acre. While the property has been historically utilized for oil production, the few oil wells remaining on the site are in the process of being removed. The property owner has submitted development plans to the City for 331 attached townhome units on the site. Construction of these units is anticipated to begin in Spring 1990. Area #2: The Redevelopment Agency is currently working with a private oil company in developing an oil consolidation site in downtown Huntington Beach. Existing oil facilities located on the 20. 72-acre Area #2 site are to be relocated on the oil consolidation site. Existing High Density Residential zoning on the site would permit the development of approximately 725 multi -family dwelling units on the property. Area #3: This area consists of approximately 47.62 acres designated as Residential Estate Density (2 du/acre) . The site is located in the Holly-Seacliff Master Plan area adjacent the proposed linear park. While the area had previously been identified as constrained by oil production, the Master Plan provides for mitigation of oil constraints , through abandoning some wells and creating "oil islands" with remaining on-site oil facilities. By mitigating restrictions on development, approximately 95 single-family dwelling units will be able to be accommodated on this site. 2-11 ` J Cf, �••• OO1Fi yr ,2Jt GT�l FF�F T F� 1� ?J�' `'~� LLF •'i .f .srcado.�Fail. .�n pOr 1 nREn 4 �� z• OJ '� AREA 3 ASCON F wni n,;�an PROPERTY " IIII11111��� I r `. BOLSA CHICA [dlsonComp- Sea Cliff Ceneratfng I C°onlry Club Plam�� .,rIf IC P fCvK, .r� . ,-----+......fy AREA 2WAS i �) e AREA 1 I P A C F I C O C E A N 0 3G3G �C K North ,cola in Feel FlGUG: 1 P KI.V IOU SLY ((JI,IS I RAINI_1) LANDS SUM ABU I OR RI.SII)EN'I IAI.I)EVEI.OPM1:NI � r. i Area #4: Similar to Area #3, this 38.48 acre site is located in the Holly-Seacliff Master Plan, which provides for mitigation of existing oil constraints. The Master Plan designates this site for an overall average density of seven dwelling units per acre, providing for a total of 269 dwelling units . Through the City' s efforts, 126 acres of land which had previously been constrained by oil production activities will be opened up to development. This residential acreage will provide for an increase in dwelling units, ranging from low density estate housing, to high density apartments and condominiums. Table 1 provides a breakdown of the number and type of additional residential dwelling units which could be constructed in Huntington Beach under the General Plan. Of the City' s total 725 vacant residential acres, 478.8 acres can be considered unconstrained and available for development over the five-year period of the Housing Element. This acreage will support a maximum buildout of 4,997 dwelling units, ranging in density from 2 to 35 units per acre. Nearly half (45 percent) of the potential dwelling units are the Medium-High and High Density residential land use categories , providing opportunities for lower cost housing development. Approximately one-quarter of these potential units are designated for Medium Density Residential , indicating a significant proportion of future residential growth will be in the form of duplexes and townhomes and lower density apartments and condominiums . Single-family homes will comprise approximately one-quarter of the City' s future residential growth. A recently-adopted Specific Plan for the Ellis West area will serve as a vehicle for consolidating land ownerships, providing for approximately 600 residential estate dwelling units . 2.3.2 Underdeveloped Sites In addition to development on vacant lands, there is the potential for new residential development on sites which are currently developed at densities lower than those permitted under the General Plan and zoning. In the Townlot, Oldtown and Downtown areas, many of the areas designated for densities of 15 units/acre are currently developed with single-family and lower density multi -family uses . Recycling of these lower density uses occurs when the intensity of use allowed in the zone more than offsets the costs of acquiring the improved site, demolishing the existing units, and constructing new higher density units . For the past several years, substantial recycling activity has been occurring in the Townlot, Oldtown and Downtown areas indicating that permitted densities are high enough to warrant recycling. Interestingly, while City zoning permits densities up to 15 units per acre in these areas, the market demand for single family homes has resulted in the majority of replacement units developed as single-family detached units . Single-family residential uses in the Townlot, Downtown and Oldtown areas are predominately developed on 50' x 115' and 25' x 115' sized lots. The recycling trend in these areas 2-13 TABLE 1 CITY OF HUNTINGTON BEACH VACANT LANDS SUITABLE FOR RESIDENTIAL DEVELOPMENT: 1989 Total Unconstrained Vacant Potential Vacant Potential Total Land Use Catagory Acreage DUs Acreage DUs DUs Residential Estate 222.0 724 182 .6 605 12% (2-4 du/ga) Residential Low Density 98.39 688 86.41 605 12% (7 du/ga) Residential Medium Dens . 159. 73 2,407 77 .91 1 , 169 24% (15 du/ga) Residential Medium-High 17 . 55 439 17 . 55 439 9% (25 du/ga) Residential High Density 62.05 2, 172 62.05 1 ,813 36% (35 du/ga) Planned Community 165.28 1 , 157 52.28 366 7% (7 du/ga) TOTAL 725.00 7, 587 478.8 4,997 100% Source: City of Huntington Beach Community Development Department, January 1989. 2-14 has been to demolish the existing single-family structure, and replace the unit with either two or three single-family units . Table 2 illustrates the level of recent recycling activity, with 43 single-family units demolished in these areas in 1988, and 26 in the first six months of 1989 . In order to estimate the net increase in residential development attributed to recycling over the five year period of the Housing Element , recycling activity over the past 18 months can be applied to the 1989- 1994 period. Replacement units can be conservatively estimated at a ratio of two-to-one, although it is likely many single units will be replaced at a three-to-one ratio. Based on these assumptions, it is estimated that the City will experience an annual recycling of 47 existing units , to be replaced with a total of 94 new units . Applying this annual recycling rate to the five year period of the Housing Element translates to an estimated net increase in 235 single family units which can reasonably be expected to develop during the 7/89 - 6/94 period. It should be mentioned, however, that many of the older residences in these areas are identified as historically significant on a local survey, and their removal would need to be addressed under CEQA. TABLE 2 CITY OF HUNTINGTON BEACH RESIDENTIAL RECYCLING ACTIVITY (OLDTOWN, TOWNLOT, AND DOWNTOWN AREAS) Sinqle-'Family Units Recycled to Higher Densities 1988 Jan-June 1989 Oldtown 8 8 Townlot 32 17 Downtown 3 1 Total 43 26 i I Source : City of Huntington Beach Community Developme.nt Department 2-15 2.3.3 Second Units Intensification of development in existing residential areas could also occur through the addition of "second units" on single-family lots . Second units, or granny flats as they are commonly known, are dwelling units constructed on the same parcel on which the primary single-family unit is located, providing independent living quarters which the homeowner may rent out or provide for a family member or other persons(s) . Second units provide a cost effective means of serving additional development through the use of existing infrastructure, and provide affordable housing for low and moderate income small households . Second units have the additional benefit of allowing many older persons to remain in their homes by providing additional income and security. The City has adopted an ordinance to facilitate and regulate the development of second units. While the ordinance does require a Conditional Use Permit for development of second units , reasonable parking and other requirements have been established so as not to discourage their development. Planning Department records indicate approximately 24 applications for second units have been submitted to the City since 1984 , averaging about five applications per year. Using this data to estimate the number of future second unit applications suggests that approximately 25 new applications could be expected over the five year period of the Housing Element. 2.3.4 Redevelopment Areas Five redevelopment project areas have been established in Huntington Beach: Huntington Center, Oakview, Talbert-Beach, Yorktown-Lake, and Main-Pier. Activities involving residential use include affordable senior housing , rehabilitation of existing units, residential/commercial mixed-use, and market-rate single family and multi -family development. Within the five year period of the Housing Element, the City is commited to working with the development community to achieve an additional 900+ units in the Main Pier redevelopment project area. These units will be developed on property contained within the following three projects : The Waterfront: Pursuant to the approved Development Agreement for The Waterfront project, a total of 894 high density residential units (35 du/acre) may be constructed north of Walnut Avenue between Beach Boulevard and the northerly property boundary. Approximately half of the units (448) are to be constructed in the first phase, scheduled for completion in 1992, with an additional one-quarter of the units (223) to be constructed in 1994 as Phase 2, thereby totaling 671 units to be developed within the five year time frame of the Housing Element . Pier Colony: This high density condominium project (32 units/acre) located at Pacific Coast Highway and Second Street is scheduled for completion in July 1990. It will consist of 130 one- and two-bedroom condominiums. 2-16 Main Pier Phase II : This mixed-use project located at Pacific Coast Highway and Sixth Street is currently in the planning stages. At this time, 103 medium-high density units (25 units/acre) are proposed, with a scheduled completion date of June 1991 . 2.3.5 Non-Residential Land In addition to land which is currently designated for residential development, the City is in the process of redesignating a non-residential parcel to accommodate residential land uses . City Council and Coastal Commission have ammended the General Plan to redesignate the 40-acre Ascon property from Public, Quasi -Public, Institutional to Residential Medium Density. (The site' s general location is identified on Figure 1 ) . The conceptual plan approved for this property provides for a total of 600 dwelling units at an average density of 15 du/acre. The Ascon site has historically been utilized as a landfill , and will require site clean-up to remove contaminated soil . The applicant is in the process of preparing a remediation plan for soil clean-up, with site clean-up estimated to be complete within the next two years . Residential development on the site will immediately follow site clean-up, and may be expected to be completed by the end of 1992 . 2.3.6 Surplus Land Two former school sites are presently either under construction or in the entitlement stage for residential development in Huntington Beach . Crestmore Estates is a 52-unit low density single-family project which is now under construction . Heritage Village is a mixed development project which is still in the entitlement stage. It is a 15. 2 acre, 520 unit residential/commercial project which is proposed at a density of 34 units per acre. The zoning will be a Specific Plan . In addition to these school sites, four other residentially-zoned school sites are being proposed for residential development by the school districts. Huntington Beach Elementary District has proposed 9.75 acres for residential on its Lebard School site, and Fountain Valley School District has advertised for bids on its 9. 10 acre Bushard School site. These two sites are both zoned R-1/7du/acre, providing for the development of 132 dwelling units . Two other surplus school sites, Golden West College (6.81 acres) and Wintersburg High School (14 acres) , have been advertised for bids by the school districts . These sites are zoned single-family residential and residential -agriculture respectively, and could accommodate a total of 62 dwelling units. However, development under this twenty year old base zoning would be incompatible given the location of these sites along major arterials and surrounding higher densities. These sites will likely be rezoned to accommodate higher density residential development consistent with their setting. 2-17 2.3.7 Bolsa Chica The Bolsa Chica area is another very significant housing opportunity for the City. The City has initiated annexation procedures for the 1 ,635 acre vacant area known as the Bolsa Chica. While nearly two-thirds of the Bolsa Chica is comprised of a State Ecological Reserve and wetland; the remaining 400-plus acres located immediately adjacent exiting residential neighborhoods , are planned for residential development . The Bolsa Chica is located within the City' s sphere of influence and is surrounded on all three sides by the City of Huntington Beach (refer to Figure 1 ) . At the meeting of October 2, 1989, the City Council selected an outside lair firm to assist the City in preparation of a development/pre-annexation agreement for the Bolsa Chica area. In addition, a memorandum cf understanding on the Bolsa Chica Environmental Impact Statement (EIS) was approved by Council at their meeting of October 16, 1989 . Property owners in the Bolsa Chica area are limited to Signal Landmark Inc . , State Lands Commission, and the Metropolitan Water District : all have been supportive of annexation to the City. The anticipated time frame for annexation includes completion of the Final EIS by Fall 1990, with annexation to occur in late 1990 or early 1991 . Development is expected to occur within 31, years and will include a minimum of 3800 and a maximum of 5700 residential units . A coalition representing five interest groups (Orange County, State Lands, property owner Signal Landmark. Inc. , a citizens interest group Amigos de Bolsa Chica, and the City) is projecting approximately 4400 residential units ; Figure 2 provides a conceptual plan of development in the Bolsa Chica as proposed by the coalition . The actual number of units is uncertain at this time because the cost of restoring the approximately 1100 acres of wetlands is not known . Some funding may be available from the Los Angeles and Lone Beach ports as a result o;- wetland mitigation requirements . Should this funding materialize, the restoration costs to the major landowner (Signal Landmark, Inc. ) would be reduced, thereby allowing development of r"ever units . City services appear adequate to serve the project development and the City is participating in the Bolsa Chica traffic modeling project to insure that circulation concerns are addressed. 2.3.8 Availability of Public Services and Facilities As a highly urbanized community, public facilities are available to facilitate development throughout Huntington Beach . All of the land designated for residential use in the Low Density, MediU"1 Density. _ Medium-High Density and High Density categories is presently served by sewer lines, water lines, streets, storm drains, telephone, electrical and gas lines . While areas designated for Residential Estate are not currently served by sewer and water lines and storm drains , the Ellis Golden West Specific Plan provides for necessary improvements to be installed over the next few years . This Specific Plan will also help to alleviate another constraint to development in this area , fragmented land ownership. 2-18 RESOENTIAL DENSITIES UP TO 6.5 DU/AC j V t UP TO 12.5 DU/AC - `--� .LINEAR - UP TO 18.0 DUIAC / L-- .. _ \� PARK ! Mq C / ; ®- t WETLANDS, ESHA • <: _ �t,,..: .:.... .. :,t :-;-,_..:...•. _ :: - 1 ESHA / S f ACREAGE SUMMARY OPEN SPACE LAND USE TYPE = ACRES RESIDENTIAL 412.3 .'.�.r-- - / I::::ry-c;�•G:o.`:=:r:.�_'-'E� - yl ^ L1 I �C. c tr LAND SiESHA/ N/ •t OPEN SPACE 71049 LINEAR PARKJESHA 50.9 _' ;'/ � • B�. r ��'_' A 1HS!GWA7cO 1 •2 ,`_, t•$r/�� /���;��1 . l ROADWAYS . TOOD C\INTROL CHANNEL OTAL 53G .•WETLANDS ESHA OPEN SPACE C y � � .� ' � - �%, �" �- •�?•' '•� � � � _ WETLANDS ESHA / OPEN SPACE. ((: .. - , 3 •D -� - % WETLANDS ESHA OPEN SPACELINEAR C , PARK /I / ESHA WETLANDS / ESHA / OPEN SPACE _., .• _ I jNON-NAVIGABLE r - OCEAN CONNECTION. PACIFIC OCEAN PACIFIC OCEAN SOURCE: VALE SPECK �fAYI.OK FC North --< FIGURE 2 OOLSA CHICf RESIDENTIAL,DEVF.IOPrlAENT PLAN 2.3.9 Residential Development Potential Compared with Huntington Beach's Housing Needs As indicated in Section 3.4 of the Housing Element, the Regional Housing Needs Assessment (RHNA) prepared by SCAG has identifed a future housing need for Huntington Beach of 6,228 units to be developed over the next five years (1989-1994) . Combining the residential development potential on vacant, underutilized, redevelopment, non-residential and surplus sites, an estimated 7,527 additional units(a) could be developed in the City (refer to Table 3) . This would indicate that the City's General Plan and zoning provide for a residential development capacity which is adequate to accommodate the City' s share of regional housing needs . In addition, with annexation of the Bolsa Chica, an estimated 3,800 to 5,700 additional dwelling units could be accommodated in Huntington .Beach . In terms of development opportunities for lower income households, approximately half of potential residential growth is allocated to higher density housing (Medium-High and High Density Residential ) , which can more readily be priced to meet the needs of Very Low and Low Income households . However, even at these higher densities, the City will need to offer incentives to private market developers to ensure the provision of units affordable to Very Low and Low Income households . Condominium units will provide homeownership opportunities for some smaller, Moderate Income households though ownership assistance will still be necessary to provide many of the City' s Moderate Income households the option of home purchase. (a) The ultimate buildout potential in the City is approximately 10,000 additional dwelling units, reflecting the approximate 2,500 units constrained from development over the next five years. 2-20 TABLE 2 CITY OF HUNTINGTON BEACH POTENTIAL RESIDENTIAL DEVELOPMENT SUMMARY RESIDENTIAL DWELLING UNIT POTENTIAL Under- Land Use Vacant utilized Second Redevelop- Non-Resi - Surplus Category Land Land Units ment Areas dential Land Land TOTALS Residential 605 14 619 Estate Residential 605 235 25 232 1 ,097 Low Density Residential 1 , 169 600 1 , 769 Medium Density Residential 439 103 542 Medium-High Density Residential 1 ,813 801 520 3, 134 High Density Planned 366 366 Community TOTALS 4,997 235 25 904 600 766 7,527 2-21 3.0 HOUSING PLAN 3.1 Evaluation of Accomplishments Under 1984 Housing Element State Housing Element law now requires communities to assess the achievements under adopted housing programs as part of the five year update to their Housing Elements. These results should be quantified where possible, e.g. rehabilitation results, but may be qualitative where necessary, e.g. mitigation of governmental constraints . These results then need to be compared with what was projected or planned in the earlier element. Where significant shortfalls exist between what was planned and what was actually achieved, the reasons for such differences must be discussed. The following section provides an overview of the specific program goals from the Huntington Beach 1984 Housing Element, and an assessment of the actual accomplishments under these programs during the 1984-1989 period of the Housing Element. These programs are organized around the five major issue areas addressed in the Housing Element. ISSUE #1- ACCESSIBILITY Program: Aid in the production of 164 senior citizen units in the Talbert-Beach redevelopment area through land acquisition and write-down. Accomplishment: In 1985, the Huntington Beach Redevelopment Agency, in partnership with a private developer, completed Emerald Cove senior housing project. The project consists of 164 apartment units at 50 percent below market rental rates. This project received a National Certificate of Merit from the U.S. Department of Housing and Urban Development for public/private partnerships. Program: Develop City standards to implement new State and Federal laws for handicapped accessibility in new developments . Accomplishment: The City has adopted the State Uniform Building and Housing Codes which incorporate State requirements for handicapped accessibility. Program: Provide $1500 grants to owners of rental housing to make units accessible to the physically handicapped. Accomplishment: Only four grants were issued during the 1984-1989 period. More creative and intense marketing appears to be needed to increase participation. 3-1 ISSUE #2 - ADEQUATE PROVISION Program: Provide tax-exempt single-family and multi -family mortgage revenue bonds to facilitate the development of affordable units. Accomplishments: On a City-wide basis, the City issued single-family mortgage revenue bonds in the amount of $4,660,000 in 1984 to finance 55 moderate income home purchases. In addition, six multi -family projects, with a total of 402 units affordable to lower income households have been completed. Program: Consider the reduction or waiver of development fees for projects participating in an affordable housing program. Accomplishments: The City has assumed development fees on one Redevelopment Agency sponsored project for the provision of affordable housing. Program: Continue to contract with the Orange County Housing Authority to provide Section 8 rent subsidies to lower income households. Accomplishments: According to the Housing Authority, Huntington Beach has been one of the more aggressive communities in the region pursuing needed rental subsidies . As of March 1989, the City had secured a total of 577 housing vouchers and certificates. Huntington Beach is the only city in Orange County that participates in Project Self-Sufficiency, a program which offers housing vouchers to low-income single parents who are either currently homeless, or at risk of becoming homeless. Program: Review development standards to determine which ones can be relaxed in order to reduce housing costs, and process appropriate code revisions. Accomplishments: Code revisions have been adopted which institute senior development standards with reduced minimum unit sizes and reduced parking requirements. Program: Revise the multi -family-zoning ordinance to reduce required recreation space and common open space in smaller projects. Accomplishment: As the City wishes to maintain a minimum level of recreational and open space amenities in all multi -family projects, this program is no longer being pursued. Code revisions have been adopted for senior housing developments to allow greater flexibility in the location of required open space. ISSUE #3 - ADEQUATE SITES Program: Review Division 9 of the City Municipal Code to ensure it reflects Housing Element policies and programs. 3-2 Accomplishments: The City is beginning a comprehensive rewrite to Division 9 of the Municipal Code; appropriate revisions and housing-related ordinances will be incorporated into the Code at this time to reflect Housing Element policies and programs. Program: Investigate the feasibility of using vacated school and park sites and other publicly owned land for affordable housing. Accomplishment: Irby Park is being reviewed as a potential site for affordable housing through the 20% set-aside program. In addition, the City is working with a private developer to construct a housing project on a closed school site, a portion of the units which would be set aside for low and moderate income households. Program: Evaluate land use and zoning designations to determine where increased densities can be utilized to provide for affordable housing. Accomplishment: The City reviews on an on-going basis the potential for density increases for affordable housing projects on vacant and infill sites as they are presented to the City by developers . ISSUE #4 - PRESERVING HOUSING AND NEIGHBORHOODS Program: Continue to make available low interest rehabilitation loans for low-income owner-occupied housing, with a program goal of 25 loans annually. Accomplishment: Approximately 226 owner-occupied rehabilitation loans have been made since 1984, primarily concentrated in the City' s designated target areas: Oakview, Commodore Circle, South Shores, Liberty and Downtown/Oldtown. Program: Enhance and preserve the multi -family housing stock within the Oakview neighborhood. Accomplishment: Thirty loans were made since adoption of the 1984 Housing Element in the Oakview neighborhood, for a total rehabilitation of 120 units. Program: Provide low interest rehabilitation loans to investor-owners of multi -family rental housing in targeted revitalization areas, with the goal of rehabilitating 35 units per year. Accomplishment: This goal has been met and exceeded with an average of 50 units rehabilitated per year within the designated target areas. Program: Develop and implement a comprehensive improvement program for Commodore Circle, with the goal of rehabilitating 80 units and initiating occupancy and maintenance standards. 3-3 Accomplishment: This program has been completed since adoption of the 1984 Housing Element. All substandard units have been rehabilitated, public improvements have been completed, and all owners have executed a maintenance agreement with the City. Program: Develop and implement a City-wide maintenance ordinance. Accomplishment: The City has recently expanded its code enforcement program to encompass property maintenance violations, and has increased the number of code enforcement officers to four to more adequately address code complaints. ISSUE #5 - PRESERVING AFFORDABILITY Program: Oversee the continued affordability of low and moderate income units produced with tax exempt financing. Accomplishment: The City has hired a consultant to develop a monitoring program to ensure the continued affordability of low and moderate income units for which public subsidy has been provided. Once in place, bi -annual monitoring will be conducted to verify the income of the tenant, and to verify the continued affordability of the unit. Program: Prepare a condominium conversion ordinance to regulate the conversion of rental housing to ownership units in order to mitigate impacts on affordable rental housing. Accomplishment: The City adopted its condominium conversion ordinance in November 1984 which requires converted units to conform to the requirements of the City' s Planned Unit Development (PUD) Ordinance. Since most existing multi -family housing units have been developed to standards that generally require substantially less open space and parking than that required under the PUD Ordinance, these requirements serve as a significant disincentive for condominium conversion. Program: Continue to pursue the production of affordable housing. Accomplishments: The City has participated in numerous affordable housing developments since adoption of its 1984 Housing Element. They have utilized a combination of City incentives, such as density bonus and bond financing, combined with outside funding sources to achieve a total of 391 affordable units. Specific publicly-assisted residential projects with an affordable housing component developed since adoption of the 1984 Housing Element include the following: 3-4 TABLE 4 AFFORDABLE HOUSING DEVELOPMENTS CITY OF HUNTINGTON BEACH: 1984-1989 NAME LOCATION UNITS TOTAL/LOW MOD Brisas Del Mar 409 Utica 44/8 Corona 7916 Stark 8/1 7924 Stark 8/1 7891 Holt 8/1 7901 Holt 8/1 Emerald Cove Talbert & Jolly Lane 164/164 (seniors) Gustine Yorktown & Huntington 21/4 Harbor Gateway Warner & Green 102/31 Hartfelter Newland & Slater 8/1 Huntington Bayshore Lake & Atlanta 159/34 Huntington Village 16171 Springdale 114/27 (seniors) Ratsui 5081 Dunbar 6/1 Rivermeadows 8945 Rivermeadows 152/31 Seabridge Villas 20251 Cape Coral Lane 344/69 Stellrecht 16032 Springdale 61/12 Villa Corsica 19th & Walnut 18/4 Waldman 17230 Elm 7/1 TOTAL 1 232 391 Program: Create and maintain an inventory of sites potentially suitable for affordable housing and refer these to private developers. Accomplishments: The City's Economic Development Department has developed an inventory of potential sites for affordable housing, including vacant lands, park and school sites. In addition, the Planning Department conducted a comprehensive vacant lands inventory in April 1988 which can be utilized to identify additional sites for afforable housing. 3=5 3.2 Goals, Policies, and Program Actions Background The- City of Huntington Beach adopted a series of goals and policies as part of its 1984 Housing Element to guide the development and implementation of its housing program. As part of the current Housing Element update, these adopted goals and policies have been evaluated in terms of their effectiveness and actual results in implementation. In addition, the adopted goals and policies were reviewed as to their appropriateness in addressing the housing needs identified in this Housing Element update. The following goals and policies reflect a revision to those previously adopted to incorporate what has been learned from the prior element, and to adequately address the community's identified housing needs. These goals and policies will serve as a guide to City officials in daily decision making. Housing Program The City of Huntington Beach has adopted three goals for its housing program which are consistent with State and Regional housing policies. These goals are: 1 . The attainment of decent housing within a satisfying living environment for households of all socioeconomic, racial , and ethnic groups in Huntington Beach. 2. - The provision of a variety of housing opportunities by type, tenure, and cost for households of all sizes throughout the City. 3. The development of a balanced residential environment with access to employment opportunities, community facilities, and adequate services. In order to progress toward the attainment of these goals, the City has committed itself to specific policies and programs. The policies are organized around five issue areas which are identified by the California Department of Housing and Community Development as important priorities in addressing local housing problems. This section presents a discussion of the problems inherent in each of the issue areas, followed by policies adopted by the City to resolve these problems. The program actions intended to effect their solution then are discussed, including anticipated impacts, responsible agencies, funding source, and the time frame for completion of each program. In aggregate, the Element' s program actions set forth the following five year housing goals, as detailed in Table 4A: Total Units to be Constructed: 7,527 total units/675-750 assisted Total Units to be Rehabilitated: 530 Total Units to be Conserved: 965 - 1 ,015 A comprehensive discussion of the existing and proposed programs of the Housing Element is contained in Section 3.6. 3-6 TABLE 4A HOUSING ELEMENT PROGRAM SUMMARY Number of Units Program Action to be Assisted New Construction: 1 .2 200 2.2 50-100 2.9 300 2. 13 125-150 Total 675-750 Rehabilitation: 1 .5 10 1 .6 10 4.2 250 4.3 100 4.4 80 4.6 80 Total 530 Conservation: 2.5 815 2. 12 150-200 Total 965-1 ,015 3-6.1 GOAL 1.0 ACCESSIBILITY Providing housing opportunities for all households regardless of race, color, religion, sex, family size, marital status, national origin, ancestry, age or physical disability is an essential element of a sound housing program. In order to assure non-discrimination in housing, the City contracts with the Orange County Fair Housing Council which investigates complaints of discrimination because of race, ethnicity, marital status, or sex. The Fair Housing Council also handles problems with evictions, rent increases, substandard housing conditions, and disputes regarding deposit returns, as well as arbitrating landlord-tenant conflicts. One problem needing attention is that of handicapped and elderly persons whose access to decent housing may be prevented by architectural barriers . Policies and actions addressing these special needs have been included under accessibility because it is felt that the lack of assistance to these groups may constitute a subtle, if unintended, form of housing discrimination. 1.0 Policies In order to assure accessibility to decent housing for all , the City of Huntington Beach shall : ° Affirm a positive action posture to assure that unrestricted access is available to the community. • Promote housing which meets the special needs of handicapped and elderly persons. ° Encourage the provision of adequate numbers of housing units to meet the needs of families of all sizes. 1.0 Programs 1 . 1 Action: Continue to utilize the services of the Orange County Fair Housing Council . Anticipated Impact: All complaints of discriminatory practices in housing within the city will receive attention. In addition, OCFHC will provide counseling in landlord-tenant disputes, special assistance for ethnic minority and female-headed households (which includes escort services to locate adequate housing) , bilingual housing literature and video-tape presentations, day-care services, and housing assistance counseling. 3-7 Responsible Agencies: Huntington Beach Economic Development Department (EDD) . Funding Source: CDBG funds. Schedule: Ongoing. 1 .2 Action: The City will continue to make available Redevelopment Agency-owned property within the Talbert-Beach redevelopment area for the construction of senior citizen and/or low and moderate income housing. Provide for reduced development standards through use of the City's Senior Residential Suffix zoning. Anticipated Impact: Aid in production of up to 200 units for senior citizen and affordable housing. Responsible Agencies : Huntington Beach EDD/Redevelopment Agency. Funding Source: Redevelopment Set-Aside Fund. Schedule: Based on final acquisition of parcels. 1 .3 Action: Implement state and federal laws for access and adaptability for the physically handicapped. Continually adopt updates to the State Uniform Building and Housing Codes to reflect current accessibility requirements. Anticipated Impact: More locational choice for the physically handicapped due to an increase in the supply of suitable rental units. Responsible Agencies: Huntington Beach EDD and Community Development Department (CDD) . Funding Source: None necessary. Schedule: Ongoing. 1 .4 Action: Continue to coordinate with and financially support the Doyle MacIntosh Center to maintain a directory of accessible housing for handicapped persons. Anticipated Impact: Assistance to handicapped persons in locating housing. Responsible Agencies: Huntington Beach EDD and the Dayle MacIntosh Center. Funding Source: CDBG funding. Schedule: Ongoing. 3-8 { i 1 .5 Action: Actively market grants, through preparation and distribution of information packets, which are available to owners of rental housing for modifications necessary to make units accessible to and suitable for the physically disabled. Anticipated Impact: The provision of an increased number of rental units suitable for physically disabled persons. The five year goal is for modification assistance to ten renter units. Responsible Agencies: Huntington Beach EDD and the Dayle MacIntosh Center. Funding Source: CDBG funds. Schedule: 1990-91 . 1 .6 Action: As part of the ongoing rehabilitation program, fund rehabilitation loans which include improvements to make housing accessible to handicapped persons within designated neighborhoods. Anticipated Impact: An increased amount of locational choice for the physically disabled. The five year goal is for modification assistance to ten owner units. Responsible Agencies: Huntington Beach EDD. Funding Source: CDBG funds, Redevelopment Set-Aside. Schedule: Ongoing. 3-9 i 4 GOAL 2.0 ADEQUATE PROVISION Adequate provision for the housing needs of all economic segments of the community is an issue of the highest priority in Huntington Beach. For reasons previously discussed, it appears unlikely that market forces alone will produce enough housing that is affordable to low and moderate income households to meet expected needs. Since decent housing for all is important to the welfare of the entire city, it is particularly important to address this need through the use of those public powers which impact housing. 2.0 Policies To ensure adequate provision of housing for all economic segments of the community, the City of Huntington Beach shall : ° Encourage the provision and continued availability of a range of housing types throughout the community, with variety in the number of rooms and level of amenities. ° Encourage both the private and :public sectors to produce or assist in the production of housing with particular emphasis on housing affordable to lower income households, as well as the needs of the handicapped, the elderly, large families and female-headed households. ° Utilize density bonuses and other financial incentives where feasible to encourage the production of low and moderate income housing. Provide rental assistance vouchers, as available, for some or all of the affordable units provided. ° Take advantage of existing infrastructure and public improvements. to provide additional affordable housing by allowing second units in single-family zoning districts. ° Facilitate the development of mixed-use projects containing residential and non-residential uses which can take advantage of shared land costs to reduce the costs of land for residential uses through General Plan designation and the Specific Plan process. ° Encourage alternative forms of homeownership, such as shared equity ownership and limited equity cooperatives and housing arrangements, such as Shared Living Units, to encourage affordability. • Encourage the development of childcare facilities coincident with new housing development through conditions on project approval at -the CUP or EIR level , and review the City's Zoning Ordinance to identify any unnecessary restrictions related to the provision of family day care and childcare facilities in residential zones. • Promote adoption of development standards which reduce housing costs. 3-10 i i ° Review all regulations, ordinances, departmental processing procedures, and residential fees related to rehabilitation and/or construction to assess their impact on housing costs, and revise as appropriate. ° Provide the management and personnel resources necessary to carry out identified housing programs and responsibilities. ° Continue and expand utilization of Federal and State housing assistance programs. ° Promote the availability of sufficient rental housing to afford maximum choice of housing type for all economic segments of the community. community. ° Review the City's condominium conversion ordinance, and consider revising to allow modified requirements for units which are set aside for low and moderate income households. ° Encourage the retention of adequate numbers of mobile homes and investigate areas for potential new mobile home zoning. ° Continue to enforce the City's mobile home conversion ordinance. ° Continue to coordinate with local social service providers and notify of available City funding to address the needs of the City's homeless population. ° Encourage the provision of alternative housing through replacement housing and/or relocation for low or moderate income households displaced by public or private developments. ° Ensure that any adverse impacts are minimized when increasing densities or relaxing standards in order to provide for low and moderate income housing. ° Investigate the development of single room occupancy (SRO) hotels to provide housing opportunities for very low income residents. 2.0 Programs 2. 1 Action: Apply to the State Mortgage Bond Allocation Committee for single-family bond allocations to enable below market rate financing to be offered on qualifying projects to moderate income households. Anticipated Impact: Make a greater share of housing stock affordable to first-time buyers. Responsible Agencies: Huntington Beach EDD. Funding Source: Bond revenue. Schedule: Ongoing. 3-11 a a 2.2 Action: Continue to offer incentives, including density bonus, land write downs, and write downs of other development costs, to for- profit and non-profit developers, for the development of senior citizen and low/moderate housing. Anticipated Impact: Development of between 50 to 100 additional affordable units during the 1989-1994 period. Responsible Agencies: Huntington Beach CDD. Funding Source: Department budget. Schedule: Ongoing. 2.3 Action: Provide consultation and technical assistance to aid private developers in expanding housing opportunities. Anticipated Impact: Increased housing choice and more affordable housing. Responsible Agencies: Huntington Beach CDD and EDD. Funding Source: Department administrative budgets. Schedule: Ongoing. 2.4 Action: Continue the City's outreach campaign to solicit participation of private developers in affordable housing programs; maintain a roster of interested firms. Anticipated Impact: The production of affordable housing. Responsible Agencies: Huntington Beach EDD. Funding Source: Huntington Beach EDD Administrative Budget. Schedule: Ongoing. 2.5 Action: Continue to contract with the Orange County Housing Authority to administer the Section 8 Housing Assistance/Voucher Program and aggressively pursue the attainment of additional housing vouchers. Anticipated Impact: Consistent with the City's Housing Assistance Plan, augment the current level of rental assistance (577 certificates/ vouchers) , with a five year assistance goal of 238 additional rent subsidies. Responsible Agencies: Huntington Beach EDD and the Orange County Housing Authority. 3-12 Funding Source: Huntington Beach EDD Administrative funds/OCHA, potential use of Redevelopment Set-Aside to augment rental subsidies. Schedule: Ongoing. 2.6. Action: Continue to contract with the Orange County Housing Authority to screen and verify incomes of potential participants in housing programs. Anticipated Impact: Ensure that recipients of affordable housing are qualified for such housing. Responsible Agencies : Huntington EDD/OCHA. Funding Source: Huntington Beach EDD Budget. Schedule: Ongoing. 2.7 Action: Review development standards, such as minimum size, open space, parking, to determine which ones can be relaxed in order to reduce housing cost; process appropriate code revisions as part of the zoning ordinance update. Anticipated Impact: Reduction in the cost of housing. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budget. Schedule: 1989-90. 2.8 Action: Evaluate the feasibility of developing a specific procedure for fast track processing projects with an affordable housing component. Anticipated Impact: Reduction in holding costs for affordable housing projects, thereby improving the economic feasibility of such projects. Responsible Agencies: Huntington Beach CDD and EDD. Funding Source: Department Budgets. Schedule: 1989-90. 2.9 Action: Continue to provide tax exempt mortgage financing for new multi-family housing. 3-13 i Anticipated Impact: Increased supply of rental housing stock affordable to lower income households. Based on previous levels of developer participation, the City's goal is to provide mortgage financing for three projects (estimated 300 units) over the next five years . Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. Funding Source: Tax exempt financing. Schedule: Ongoing as projects meet criteria. 2. 10 Action: Continue to operate Project Self-Sufficiency to address the needs of low income, single parents by offering rental assistance, job training,and other needed services. Anticipated Impact: Curtail additional single parent households from becoming homeless. Responsible Agencies: Huntington Beach EDD. Funding Sources : CDBG funds, private donations, Redevelopment Set- Aside. Schedule: Ongoing. 2. 11 Action: Continue to offer financial assistance to local groups which provide services to the area's homeless population. Provide public notification of the availability of funds through newspaper advertisements, as well as direct notification to local service providers. Anticipated Impact: Address the needs of the City's homeless through provision of 15% of the City's CDBG budget for social services. Responsible Agencies: Huntington Beach EDD. Funding Source: CDBG funds, Redevelopment Set-Aside. Schedule: Ongoing, 2. 12 Action: Actively market the City' s shared housing program to increase the number of roommate matches made between senior citizens . Utilize the City's Public Information Office to advertise the program through such methods as Public Television and placement of brochures in local community centers. Investigate developing a pilot project to match residents of varying age categories which links up with Project Self-Sufficiency. 3-14 Anticipated Impact: Provide expanded opportunities for seniors to remain in their homes, while providing affordable housing options for seniors who do not own a home. Goal is to provide for 30-40 roomate matches per year. Responsible Agencies : Community Services Department, Huntington Beach EDD. Funding Source: Department Budgets. Schedule: 1990. 2 . 13 Action: Develop and implement a shared equity program to provide down payment assistance to qualifying low and moderate income first time homebuyers . Anticipated Impact: Provide homeownership opportunities for 25-30 low and moderate income first time homebuyers annually. Responsible Agencies: Huntington Beach EDD. Funding Source: Redevelopment Set-Aside. Schedule: Establish program within one year. 2. 14 Action: Continue to provide for the housing needs of large families through the provision of a) rent certificates for larger units to accommodate overcrowded households as part of the Rental Rehab Program, and b) single-family rehabilitation loans for room additions to alleviate unit overcrowding. Anticipated Impact: Provide adequately sized affordable housing which meets the needs of the City's large families . Responsible Agencies: Huntington Beach EDD and Orange County Housing Authority. Funding Source: CDBG funds and Section 8 certificates/vouchers. Schedule: Ongoing . 2. 15 Action: Review the City's Zoning Ordinance to identify any unnecessary restrictions related to the provision of family day care and childcare facilities in residential zones. Anticipated Impact: Enhanced opportunities for day care, providing needed services to female-headed and family households. 3-15 Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989-90. 2. 16 Action: Investigate the use of specific plans to promote a balance of housing and open space, and to reduce the per unit cost of housing through such methods as clustered housing, zero lot line on smaller lots, flexible setbacks, reduced parking standards and lot sizes. Anticipated Impact: Reduced housing development costs and associated decreases in sales/rental prices. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989-90. 2. 17 Action: Investigate the feasibility and a possible ordinance to permit Single Room Occupancy (SRO) hotels as a mechanism for providing affordable housing. Anticipated Impact: Facilitate the development of SROs. Responsible Agency: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: Complete study- and prepare a report within one year. 2. 18 Action: Encourage developers to pursue "gap" financing from the Orange County Housing Authority for residential projects offering affordable units. Anticipated Impact: Increase the supply of affordable housing by offering financial assistance to project developers. Responsible Agency: Huntington Beach CDD. Funding Source: Orange County Housing Authority. Schedule: Ongoing. 3-16 GOAL 3.0 STANDARDS AND PLANS FOR ADEQUATE SITES A key element in satisfying the housing needs of all segments of the community is the provision of adequate sites for housing of all types, sizes, and prices. This is an important function of both zoning and General Plan land use designations. Since the City is already developed to a large extent, provision for future housing needs may require the rezoning of some areas where appropriate to meet housing needs and where economically feasible in terms of City facilities and services . An assessment of the adequacy of sites must include the collective capacity of sites community-wide as well as the suitability of individual sites for non-market rate housing. 3.0 Policies To assure the adequate provision of sites for housing, the City of Huntington Beach shall : ° Utilize the following general criteria for identifying and evaluating potential sites for low and moderate cost housing and sites for the elderly and/or handicapped. While compliance with the following criteria is preferable, no site shall be dismissed for failure to meet this criteria and shall be judged on its own merit. Sites should be: - located with convenient access to arterial highways and public transportation, schools, parks and recreational facilities, shopping areas, employment opportunities. - adequately served by public facilities, services, and utilities. - minimally impacted by seismic and flood hazards . Where such hazards cannot be avoided, adequate mitigation measures shall be incorporated into the design of all proposed development. - minimally impacted by noise and blighted conditions . - compatible with surrounding existing and planned land uses. - located outside areas of predominantly lower income concentrations . ° Plan for residential land uses which accommodate anticipated growth from new employment opportunities. • Locate residential uses in proximity to commercial and industrial areas and transportation routes to provide convenient access to employment centers. • Promote the rezoning of vacant or recyclable parcels of land to higher densities where compatible with surrounding land uses and available services in order to lower the cost of housing. 3-17 • Utilize surplus park and/or school sites for residential use where appropriate and consistent with the City's General Plan. ° Permit the development of manufactured housing in single-family zones, and accommodate the development of mobilehome parks through the City's Manufactured Housing Overlay Zone. 3.0 Programs 3. 1 Action: Maintain an inventory of vacant land in the City and make available to interested parties for use in identifying potential residential development sites. Anticipated Impact: Provide information which may expedite identification of residential development opportunities in the City. This may in turn expedite the consolidation of fragmented ownerships and the development of housing. Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: Ongoing. 3.2 Action: Review Division 9 of the City Municipal Code to ensure it reflects Housing Element policies and programs while maintaining adequate standards for development. Anticipated Impact: Ensure consistency in carrying out the housing program while maintaining quality development. Responsible Agencies: Huntington Beach CDD. Funding Source: Department budget. Schedule: 1989-90. 3 .3 Action: Monitor changes in industrial and commercial land uses to assess their impact on residential land use. Anticipated Impact: This action is intended to reflect changing conditions in the city in order to adequately respond to current housing needs. Responsible Agencies: Huntington Beach CDD. Funding Source: Department budget. Schedule: Ongoing. 3-18 1 VS '1 3.4 Action: Work with the four school districts in Huntington Beach to provide residential development opportunities on surplus school sites. Anticipated Impact: Increase in the availability of sites for residential development. The City is committed to providing residential development on surplus school sites to enable it to meet its regional housing needs, and will work towards the creation of 776 additional dwelling units over the five year period. Responsible Agencies : Huntington Beach CDD and Department of Public Works. Funding Source: Department budgets. Schedule: Ongoing. 3.5 Action: Investigate General Plan land use and zoning designations to determine where increased densities can be utilized to provide for rental units for households of lower and moderate incomes. Anticipated Impact: Increase in the number of suitable sites for development of affordable housing. Responsible Agencies: Huntington Beach CDD. Funding Source: Department budget. Schedule: Ongoing. 3.6 Action: As part of the update of Division 9 of the City Municipal Code, identify appropriate zones for the location of transitional housing and emergency shelters for the homeless . Anticipated Impact: Provide adequate sites for the development or rehabilitation of housing for the homeless . Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budget. Schedule: 1989-90. I 3-19 3.7 Action: Continue to work with property owners in the Holly-Seacliff Master Plan area to address various land use issues, including the redesignation of non-residential lands to residential uses, subject to the procedures required under State law. Anticipated Impact: Increase in the available land inventory for residential construction, providing for an additional 1 ,000 - 1 ,700 residential dwellings. Responsible Agencies: Huntington Beach CDD. Funding Source: None necessary. Schedule: 1990. 3-20 GOAL 4.0 PRESERVING HOUSING AND NEIGHBORHOODS The 'State of California has made housing preservation and conservation a high statewide priority. While most of the City's housing stock is less than 20 years old and in good condition, several neighborhoods contain significant levels of housing deterioration. These neighborhoods include the Washington, Oakview, Liberty, Commodore, South Shores, Oldtown and Townlot communities. Through its Community and Neighborhood Enhancement Program, the City offers low interest rehabilitation loans as an incentive for unit upgrading. 4.0 Policies In order to preserve housing and neighborhoods, the City of Huntington Beach shall : • Encourage the maintenance and repair of existing owner-occupied and rental housing to prevent deterioration of housing in the city. ° Encourage the rehabilitation of substandard and deteriorating housing where feasible. ° Where possible, take action to promote the removal and replacement of those substandard units which cannot be rehabilitated. ° Provide and maintain an adequate level of community facilities and municipal services in all community areas . • Improve and upgrade community facilities and services where necessary. ° Encourage compatible design to minimize the impact of intensified reuse of residential land on existing residential development. 4.0 Programs 4. 1 Action: Review all changes in planned land uses to determine the cumulative impact on community facilities. Anticipated Impact: The assurance of adequate levels of community facilities and services to all areas of the city. Responsible Agencies: Huntington Beach CDD and Department of Public Works. Funding Source: Department budgets. Schedule: Ongoing. 3-21 4.2 Action: Continue to make available low interest rehabilitation loans for low-income owner-occupied housing. Anticipated Impact: Rehabilitation of deteriorated housing in the City and preservation of existing single-family housing stock. The program goal is 50 units per year with a maximum loan of $15,000 per unit. Responsible Agencies : Huntington Beach EDD. Funding Source: CDBG funds, Redevelopment Set-Aside. Schedule: Ongoing. 4.3 Action: Continue to enhance and preserve the multi -family housing stock within the Oakview neighborhood. Anticipated Impact: Rehabilitation of substandard four-plex units in the Oakview neighborhood, combined with rental assistance to assure affordability. The five year goal is for rehabilitation of 100 units . Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. Funding Source: HUD Rental Rehabilitation Program; Section 8 housing vouchers. Schedule: Ongoing. 4.4 Action: Within selected target areas, provide low interest rehabilitation loans to investor-owners of multi -family rental housing. Anticipated Impact: Rehabilitation of deteriorating multi-family housing and the preservation and enhancement of rental housing stock occupied by low and moderate income households. Goal of 16 units per year. Responsible Agencies: Huntington Beach EDD. Funding Source: CDBG Loan Pool , new CDBG funds, and Redevelopment Set-Aside. Schedule: Ongoing. 4.5 Action: Monitor housing conditions in neighborhoods considered marginal or at risk for deteriorated conditions in order to identify the need to expand existing rehabilitation programs . Anticipated Impact: The prevention of deterioration in marginal neighorhoods. 3-22 '7 Responsible Agencies: Huntington Beach EDD and CDD. Funding Source: EDD Administrative funds. Schedule: Ongoing. 4.6 Action: Continue to implement the comprehensive improvement plan for Commodore Circle. Anticipated Impact: Rehabilitation of 80 units and initiation of occupancy and maintenance standards. Responsible Agency: Huntington Beach EDD. Funding Source: CDBG funds; Redevelopment Set-Aside. Schedule: Rehabilitation and public improvements complete in 1989. Maintenance standards complete in 1990-1991 . 4.7 Action: Continue to enforce the City's code enforcement program, including property maintenance inspections. Anticipated Impact: Provide an enforcement tool to insure uniform maintenance consistent with the standard prevalent in the community. Responsible Agency: Huntington Beach CDD. Funding Source: Department Budget. Schedule: Ongoing. 3-23 4.8 Action: Continue to actively enforce land use ordinances. Anticipated Impacts: Improved maintenance throughout the City. Responsible Agency: Huntington Beach CDD. Funding Source: Department Budget. Schedule: Ongoing. 3-24 i GOAL 5.0 PRESERVING AFFORDABILITY An important aspect of making housing available to all economic segments of the community is ensuring that assisted housing remains affordable to the income groups for which it was intended or which presently occupy it. In the rental housing market, the priority of preserving affordability may conflict with that of preserving housing and neighborhoods, since rehabilitated units can command higher rents. This conflict necessitates a delicate balance. 5.0 Policies In order to preserve affordability, the City of Huntington Beach shall : ° Promote and, where possible, require the continued affordability of all units produced with participation by the City or its authorized agents including density bonuses and tax exempt financing. ° Encourage the continued affordability of those units utilizing public funds for rehabilitation. ° Regulate the conversion of existing apartment units to condominiums to minimize the adverse impact of conversions on the supply of low and moderate income rental housing, keeping in mind that condominiums may offer affordable opportunities for home ownership. ° Mitigate the displacement impacts occurring as a result of residential demolition through unit replacement or relocation of tenants. ° Conserve affordable housing opportunities in the Coastal Zone through implementation of State requirements for replacement of low and moderate income housing, and for inclusion of affordable units where feasible in new residential construction. 5.0 Programs 5. 1 Action: Develop an affordable housing monitoring program, including restrictive covenants for rental units and financing mechanisms, to ensure the long term conservation of affordable units for which City incentives have been provided. Anticipated Impact: The retention of affordable units produced with public sector assistance/incentives. Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. Funding Source: Department budgets. Schedule: 1989. 5.2 Action: Develop a Multi -Family Unit Interest Rate Write-Down Program targeted towards publicly-subsidized housing projects with the potential for conversion to market rate. 3-25 Anticipated Impact: Conservation of existing stock of publicly-subsidized affordable housing. Responsible Agencies: Huntington Beach EDD/Redevelopment Agency Funding Source: Redevelopment Set-Aside. Schedule: 1989-1990. 5.3 Action: Continue to enforce the City's condominium conversion ordinance, and evaluate revising the ordinance to allow modified requirements if a portion of the units are set aside for Low and Moderate Income households. Anticipated Impact: Regulate the conversion of rental housing to ownership units in order to mitigate impacts on affordable rental housing. Responsible Agencies: Huntington Beach CDD and the Office of the City Attorney. Funding Source: Department budgets. Schedule: Ongoing. 5.4 Action: Continue to pursue production of affordable housing, utilizing CDBG funds, Redevelopment Set-Aside funds and other available resources to meet the Redevelopment Agency's ongoing relocation/replacement of housing obligations. Anticipated Impact: Increase the supply of affordable housing. Responsible Agencies: Huntington Beach EDD/Redevelopment Agency. Funding Source: CDBG funds; Redevelopment Agency funds and other resources as available. Schedule: Ongoing. 5.5 Action: Establish contact with local community development corporations and other non-profit housing providers to encourage and facilitate the development of affordable housing in Huntington Beach. Anticipated Impact: Increased housing opportunity for low and moderate income households. Responsible Agency: Huntington Beach EDD. Funding Source: None necessary. Schedule: Within two years. 3-26 5.6 Action: Meet and consult with mobile home owners who are potential displacees from mobilehome parks which intend to convert to other uses. Anticipated Impact: Assessment of impacts and preparation of strategies to address needs of displacees. Responsible Agencies: Huntington Beach CDD and Redevelopment Agency. Funding Source: Department Budgets. Schedule: Ongoing. 5.7 Action: Provide financial assistance for relocation of persons displaced by redevelopment activities, including occupants of mobile homes. Anticipated Impact: Mitigation of adverse impacts on displaced residents. Responsible Agency: Huntington Beach EDD. Funding Source: Redevelopment Tax Increment. Schedule: Ongoing. 5.8 Action: Continue to monitor and assure replacement of low and moderate income housing which is demolished or converted in the Coastal Zone. Anticipated Impact: Conservation of affordable housing in the coastal zone through replacement requirements. Responsible Agency: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: Within one year. 3-27 GOAL 6.0 ENERGY CONSERVATION Reducing expenditures for energy can result in effective reductions in housing expense, since the costs of utilities are part of overall housing costs. The City does, therefore, want to encourage more efficient use of energy to promote private benefits (less expensive utility bills) and public benefits (reduced reliance on imported fuel ) . 6.0 Policies ° Encourage the use of energy conservation devices and passive design concepts which make use of the natural climate to increase energy efficiency and reduce housing costs . ° Consider developing retrofit ordinances requiring attic insulation and weatherstripping to be implemented at the time of resale or improvements to the dwelling. ° Investigate the feasibility of the use of renewable energy sources (solar and geothermal ) for hot water, space, and pool heating of larger housing developments . • Encourage CC&Rs that protect solar access in new development. ° Continue to encourage alternative forms of transit such as buses, bicycles, and walking. 6.0 Programs 6. 1 Action: As part of the update of Division 9 of the City Municipal Code, incorporate development standards which specify required energy conservation features for residential development. Anticipated Impact: Reduced energy consumption in residential projects . Responsible Agency: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989-1990. 6.2 Action: Review the City's zoning and subdivision regulations, EIR and site plan review guidelines, and municipal landscaping policies and revise as appropriate to address the issue of solar access. 3-28 Anticipated Impact: Sustained energy conservation in existing and new development through the maintenance of solar access . Responsible Agency: Huntington Beach CDD. Funding Source: Department Budgets. Schedule: 1989-1990. 6.3 Action: Continue to support and assist in publicizing energy conservation programs offered by the utilities. Anticipated Impact: Improved residential energy efficiency and - related reductions in housing costs for participating households . Responsible Agency: Huntington Beach CDD. Funding Source: Department Budgets . Schedule: Ongoing. 3-29 3.3 Housing Assistance Plan Housing Assistance Plans (HAPs) are required for jurisdictions in the Community Development Block Grant (CDBG) Program. The HAP details the programs and projects to be supported by the CDBG program as implemented through the Federal Department of Housing and Community Development (HUD) and approved by City Council . Housing assistance includes rehabilitation of substandard units and rental subsidies for lower income households, as well as several other housing programs. The HAP identifies the rental subsidy needs of lower income households categorized into three major groups: elderly (including handicapped) , small family (four or fewer persons) , and large family as shown in Table 5. TABLE 5 CITY OF HUNTINGTON BEACH RENTAL SUBSIDY NEEDS OF LOWER INCOME HOUSEHOLDS: 1989-1991 SMALL LARGE INCOME LEVEL ELDERLY FAMILY FAMILY TOTAL Very Low 919 3,548 416 4,883 Other Low 279 3,276 306 3,861 Expected to Reside 0 384 40 424 To Be Displaced 28 50 5 37 TOTAL 1 ,226 7, 258 767 9,251 Source: City of Huntington Beach, Housing Assistance Plan, 1988-1991 A total of 9,251 lower income rental households are projected to need rental assistance during the 1988-1991 time period. Small family households are anticipated to comprise approximately 79 percent of those in need, with elderly households comprising 13 percent and large family households comprising 8 percent of the total household need. Given this inventory of households in need, the HAP has set forth the following rental assistance goals for the three year period: TABLE 6 CITY OF HUNTINGTON BEACH LOWER INCOME HOUSEHOLDS TO RECEIVE RENTAL SUBSIDIES: 1988-1991 SMALL LARGE ELDERLY FAMILY FAMILY TOTAL Households to be Assisted 142 625 67 834 Percent 17% 75% 8% 100% Source: City of Huntington Beach Housing Assistance Plan, 1988-1991 3-30 The City has set as a goal the achievement of 9 percent of its rental assistance need for lower income households; HUD has identified 2-9 percent as a reasonable goal . Rental assistance will be provided to each of the three needs groups in proportion to their identified needs. In. terms of the improvement or rehabilitation of the physical housing stock, the HAP has identified the following goals: TABLE 7 CITY OF HUNTINGTON BEACH UNITS TO BE ASSISTED FOR LOWER INCOME HOUSEHOLDS: 1988-1991 Rehabilitation of New Home Type of Occupancy Substandard Units Construction Improvements Owner 112 0 0 Renter 196 250 10 Source: City of Huntington Beach Housing Assistance Plan, 1988-1991 The HAP identifies a series. of federally-funded rental subsidy and rehabilitation programs which will be implemented to meet the identified housing assistance goals. These programs have been combined with other non-Federally funded programs to form the overall program strategy for the Housing Element, as presented in the program actions in Section 3.2, and further described in Section 3.6 - Description of Implementing Programs . 3-31 3.4 Regional Housing Needs Assessment State law requires jurisdictions to provide for their share of regional housing needs . The Southern California Association of Governments (SCAG) has determined the 1989-1994 needs for the City of Huntington Beach, and has estimated the number of households which the City will be expected to accommodate during this period. Future housing needs reflect the number of new units needed in a jurisdiction based on households which are expected to reside within the jurisdiction (future demand) , plus an adequate supply of vacant housing to assure mobility and new units to replace losses. These needs were forecast by the 1988 Regional Housing Needs Assessment (RHNA) , which considered on a regional and local level : market demand for housing, employment opportunities, availability of suitable sites for public facilities, commuting patterns, type and tenure of housing need, and housing needs of farm workers . According to the model , housing to accommodate 6,228 households would need to be added to the City' s June 30, 1989 total households by July 1994 to fulfill the City's share of regional housing needs . Based on the distribution of regional income, this total can be further divided among HUD' s four income groups to identify the types of households to be provided for as follows: TABLE 8 CITY OF HUNTINGTON BEACH 1989-1994 HOUSEHOLD NEEDS BY INCOME GROUP Very Low (0-50% County median income 984 (15.8%) Low (50-80% County median income) 1 ,264 (20.3%) Moderate (80-120% County median income) 1 ,370 (22.0%) Upper (over 120% County median income) 2, 610 (41 .9%) Total Households 6, 228 Source: SCAG Regional Housing Needs Assessment, June 1988, as revised. The intent of the future needs allocations by income group is to relieve lower income impaction - the undue concentration of very low and low income households in a jurisdiction. Localities must fully address their existing needs in order for impaction avoidance goals to be achieved in the future period. The Housing Element sets forth policies and programs to address the future housing needs identified by the RHNA. The City' s Land Use Plan provides for a residential development capacity which is more than adequate to fulfill the City's share of regional housing needs. In addition, the Housing Element sets forth policies and programs to address the future housing needs of those income groups not provided for in the market, namely Very Low and Low, and to a lesser degree Moderate Income households. 3-32 3.5 Redevelopment Set-Aside Fund Legislative Background State Redevelopment Law provides the mechanism whereby cities and counties within the state can, through adoption of an ordinance, establish a redevelopment agency. The Agency's primary purpose is to provide the legal and financial mechanism necessary to address blighting conditions in the community through the formation of a redevelopment project area(s) . Of the various means permitted under State Law for financing redevelopment implementation, the most useful of these provisions is tax increment financing. This technique allows the assessed property valuation within the redevelopment project area to be frozen at its current assessed level when the redevelopment plan is adopted. As the property in the project area is improved or resold, the tax increment revenue generated from valuation increases above the frozen value is redistributed to the redevelopment agency to finance Redevelopment Project costs. In many early redevelopment projects, a major focus was upon demolition of blighted residential buildings and development of new non-residential uses or upper income residential projects. While these type of projects worked to eliminate blighting conditions, they did little or nothing to aid the mostly low and moderate income residents of the housing that was demolished, in addition to having a negative impact on the community' s supply of affordable housing. To address the problems that arose with regard to the effect of redeveloment on low and moderate income housing, the state legislature enacted a series of changes to Community Redevelopment Law which require redevelopment agencies to undertake activities which will assist in the production of low and moderate income housing. The legislative requirements regarding low and moderate income housing generally fall into three basic categories: 1) expenditure of 20% of the tax increment revenue to increase and improve the supply of low and moderate income housing in a community; 2) requirements that redevelopment agencies replace low and moderate income housing which is destroyed as a result of a redevelopment project; and 3) requirements that a portion of all housing constructed in a redevelopment project area be affordable to low and moderate income persons and families. The requirement for redevelopment agencies to set aside 20% of a project's tax increment for low and moderate income housing can provide a significant source of funding for implementation of a community's housing programs . Huntington Beach Seven years ago, the Huntington Beach Redevelopment Agency began its efforts to reverse the economic decline of several of the City' s most blighted neighborhoods. This campaign was first introduced in 1982 as the "Community and Neighborhood Enhancement Program, " a concept which set in motion activities and plans to upgrade housing, stimulate investment, and improve circulation patterns in each of the four redevelopment project areas established that year: Main-Pier, Oakview, Talbert Beach, and 3-33 Yorktown-Lake. The progress of these project areas spurred the Redevelopment Agency to include its primary commercial center, Huntington Center, in its redevelopment plans in 1984. Through its redevelopment efforts, the City Council/Agency is responsible for 344 new units of affordable housing, including three senior housing projects. Significant housing rehabilitation improvements have also been achieved within the Community and Neighborhood Enhancement target areas. While the Redevelopment Agency has made significant progress in attaining the goal of increasing the City's affordable housing stock, none of the 20% set-aside fund has yet been expended, primarily due to its low balance. However, with completion of a recent tax allocation bond sale, nearly $3.7 million dollars is currently allocated to the 20% set-aside fund. In 1988 AB 4566 mandated that redevelopment agencies with "excess surplus" (a) monies in their housing set aside funds must either spend these funds within five years or else transfer them to another local housing authority for expenditure. State law sets forth a variety of options for localities to expend their housing funds, including the following: - Land Disposition and Write-Downs - Site Improvements - Loans - Issuance of Bonds - Land and Building Acquisition by Agencies - Direct Housing Construction - Housing Rehabilitation Programs - Rent Subsidies - Predevelopment Funds - Administrative Costs for Non-Profit Housing Corporations A Housing Committee comprised of three City Council/Redevelopment Agency members and four citizen representatives was formed to develop -the fiscal year 1989-90 20% Housing Set-Aside budget and implementation plan. The Plan identifies expenditure of redevelopment set-aside funds on the following programs: 1 . Rehabilitation projects benefiting low and moderate income households where federal CDBG funds are found to be too restrictive. 2. Multi -Unit interest rate write-downs for existing federally assisted (Section 236) housing projects with the potential for conversion to market rate with expiration of the original loan. (The City also intends to explore the feasibility of having non-profit sponsors take over expiring projects with financing provided by tax-exempt multi -family revenue bonds. ) (a) "Excess surplus" is defined as any unexpended and unencumbered balance in an agency's Low and Moderate Income Housing Fund that exceeds the greater of five hundred thousand dollars or the aggregate amount deposited into the Fund pursuant to Community Redevelopment Law (Health and Safety Code Sections 33334.2 and 33334.6) during the agencies preceding five fiscal years. 3-34 3. First time buyer deferred payment loans for down payment assistance to . qualifying low and moderate income households. 4. Private market leveraging of funds (development cost write-downs) to increase the number of affordable units provided in publicly assisted housing developments. 5. Mobile home assistance to low income mobile home owners to assist with a variety of eligible programs, perhaps including emergency repair grants. Based on this first year budget for expenditure of the City's 20% set-aside fund, these programs have been incorporated into the Housing Element. In addition, based on direction provided from City redevelopment and housing staff, several additional Housing Element programs have identified the redevelopment set-aside fund as a potential source of program funding over the five year period of the Housing Element. 3-35 i 3.6 Description of Implementing Programs The Housing Element describes the housing needs of the City's current and projected population, as well as the specific needs resulting from the deterioration of older units, lack of affordable housing for lower income groups, and special needs for certain segments of the City' s population. The goals and policies contained in the Housing Element address the City's identified housing needs. These goals and policies are implemented through a series of housing programs that are funded and administered through a variety of local , regional , State and Federal agencies. Section 3.2 of the Housing Element sets forth the program actions the City intends to implement over the five year period of the Element. The following section provides a more detailed description of these programs and references the program action(s) related to each housing program. In addition, in order to further expand affordable housing opportunities in Huntington Beach, several additional housing programs are described which are under study but have not yet been committed to by the City. 3.6. 1 Current Housing Programs and Recent Actions The City takes an active role in providing housing assistance through its Housing and Community Development programs. In addition, the City has taken a number of actions in the past to further the production of housing and to improve the City' s housing stock. The City' s current housing programs and recent actions related to housing are described in the following section. 3.6. 1. 1 New Construction Tax-Exempt Mortgage Program The City maintains an on-going program to provide tax-exempt mortgage financing for construction and mortgage loans as well as capital improvements for multi -family housing. The City sells securities and bonds to provide financing for multi -family projects. Purchasers of these bonds receive an interest rate that is below the current mortgage market; however, the income from the bond is tax-exempt which increases the effective net yield to the bond holder. Federal law requires that 20 percent of the total units in a bond-financed project be reserved for lower income households. Recent State legislation requires that one half of the reserved units be set aside for Very Low Income households. (Program Action 2. 1, 2.9) Density Bonus Incentives Pursuant to State law, if a developer allocates at least 20 percent of the units in a housing project to lower income households, 10 percent for very low income households, or at least 50 percent for "qualifying residents" (e.g. senior citizens) , the City must either a) grant a density bonus of 3-36 25 percent, along with one additional regulatory concession to ensure that the housing development will be produced at a reduced cost, or b) provide other incentives of equivalent financial value based upon the land cost per dwelling unit. The density bonus mechanism has proved an effective tool for encouraging affordable housing, in the City with 136 affordable units in 13 projects completed under this program. In order to ensure the continued affordability of units provided under the program for a minimum of 30 years, the City will require that restrictive covenants be filed with the deed on all new density bonus projects and will bi -annually monitor the units. As an incentive to increase the number of affordable units provided, the City may also offer to write down the development costs in exchange for the provision of additional affordable units. The number of additional units set aside is a proportionate percentage of the City' s contribution to the overall construction costs for the project. Approximately $780,000 in redevelopment set-aside funds have been allocated for fiscal year 1989-90 for "private market leveraging. " (Program Action 2.2) Land Assemblage and Write-Down The City can utilize both CDBG and redevelopment set-aside monies to write down the cost of land for low and moderate income housing. The intent of this program is to reduce land costs to the point that it becomes economically feasible for a private (usually non-profit) developer to build units which are affordable to low and moderate income households. As part of the land write-down program, the City may also assist in acquiring and assembling property and in subsidizing on- and off-site improvement costs. (Program Actions 1 .2, 2.2) Talbert Beach Redevelopment Area: The City' s Redevelopment Agency has assisted in the consolidation of previously inaccessible parcels in this 25-acre project area to facilitate residential and industrial development. The following residential projects have been constructed in this project area to date: 1 . Emerald Cove - a 164 unit senior apartment project with 82 below market units. This project received a National Certificate of Merit from HUD for public/private partnerships. 2. Windward Cove - a 96-unit senior condominium complex with initial purchase prices well below market rates. 3. Capewood - a 54-unit condominium complex for families . The developer of these units participated in the single-family Mortgage Revenue Bond Program to provide below-market-rate homes to first-time homebuyers. The Redevelopment Agency is currently working towards consolidating the two remaining parcels in the Talbert Beach project area to provide for the development of up to 200 additional residential units. 3-37 Affordable Housing Monitoring The City has hired a private consulting firm to develop an affordable housing monitoring program for Huntington Beach. The program will involve the filing of restrictive covenants on affordable units for which City incentives have been provided. In addition, bi -annual monitoring of the units will be conducted to verify the income of the tenant, along with the continued affordability of the unit. This monitoring program will help to ensure the long-term conservation of affordable units in Huntington Beach. (Program Action 5. 1) Shared Equity Program Equity sharing allows lower income households to purchase a home by sharing the costs of home ownership with a sponsor, such as a local housing authority. The sponsor and the buyer would together provide the downpayment and purchase costs to buy a house. When the house is sold, the equity earned through appreciation is split between the occupant and the sponsor according to an agreement made prior to purchase. The City is in the process of developing a shared equity program in which a loan pool will be established using redevelopment set-aside monies for downpayment assistance to qualifying low and moderate income first-time homebuyers. A Deed of Trust and affordable housing covenant will be secured against the property to ensure the use to be owner-occupied and the loan to be paid back with a proportionate share of the equity at the time the property is sold or the title transferred. The covenant will designate the use for the longest feasible time, but not for less than ten years. One-million dollars of set-aside funding has been allocated to this program for fiscal year 1989-90. (Program Action 2. 13) 3.6. 1.2 Assistance to Existing Units Section 8 Rental Assistance Payments/Housing Vouchers The Section 8 rental assistance program extends rental subsidies to low income families and elderly who spend more than 30 percent of their income on rent. The subsidy represents the difference between the excess of 30 percent of the monthly income and the actual rent. The voucher program is similar to the Section 8 Program, although participants receive housing "vouchers" rather than certificates. Vouchers permit tenants to locate their own housing. Unlike in the certificate program, participants are permitted to rent units beyond the federally determined fair market rent in an area provided the tenant pays the extra rent increment. The Reagan Administration proposed converting the certificate program to a voucher system, which will likely occur through time. The City of Huntington Beach contracts with the Orange County Housing Authority to administer the Section 8 Certificate/Voucher Program. 3-38 According to the Housing Authority, Huntington Beach has been one of the more aggressive communities in the region in pursuing needed rental subsidies. As of March 1, 1989, Huntington Beach had secured a total allocation of 577 housing vouchers and certificates. Consistent with the City's Housing Assistance Plan, the City's five year assistance goal is for an additional 238 rent subsidies. However, it is impossible to know how many additional housing vouchers the City will actually receive from HUD. (Program Action 2.5) Community and Neighborhood Enhancement The Community and Neighborhood Enhancement Program is a comprehensive program designed to promote and assist in the upgrading of declining residential neighborhoods within the City. This program is designed to meet individual needs, to be responsive to the social and economic circumstance which exists within each neighborhood, to have strong resident and property owner support, and to be limited to a few priority areas so that the full benefit of a concentrated effort might be realized by generating substantial physical and visual improvement within these areas. The areas within the Neighborhood Enhancement Program include the Oakview, Washington Street, Commodore Circle, South Shores, Liberty, Oldtown and Townlot Neighborhoods. Rehabilitation loans are provided through the City's Housing Rehabilitation Loan Program and Rental Rehabilitation Program, described in the following sections. There is a continuing effort to provide housing rehabilitation assistance, combined with needed public improvements, to promote the renovation of existing units within these neighborhoods with an estimated $650,000 to be budgeted over the next fiscal year for this program. (Program Actions 4.2, 4.3, 4.4, 4.6) Housing Rehabilitation Loan Program This program utilizes CDBG funding to provide low interest loans to owners of residential properties. Deferred Payment rehabilitation loans of up to $10,000 are available to Very Low Income owner-occupied households. These loans are due and payable with 6% one-time only interest fee at the time of sale or transfer of ownership. The City also offers the following types of below market interest rate loans for residential rehabilitation: a)3% loans available to lower income households; b)6% loans available to median income households within identified Community and Neighborhood Enhancement target areas; and c)8% loans available to above-median income households within identified Community and Neighborhood Enhancement target areas for code compliance repairs only. The maximum loan amount for a below market interest rate loan is $15,000. The City of Huntington Beach has effectively marketed its Housing Rehabilitation Loan Program, with approximately 50-65 loans processed each year. This success is due in large part to the City's aggressive pursuit of housing rehabilitation as part of the Community and Neighborhood Enhancement Program. Rehabilitation loans are also offered to income-qualified property owners as part of the City's code enforcement activities. (Program Actions 4.2, 4.4, 4.6) 3-39 ,r Rental Rehabilitation Program The Rental Rehab Program is a separately funded Federal program established to encourage the rehabilitation of substandard apartment buildings in targeted neighborhoods. Through this program, the City offers up to a 50% deferred loan to pay towards the total cost of a rehabilitation project, with the balance financed through a 6% interest rate loan. The maximum loan amount is $40,000. To qualify for a Rental Rehab subsidy, more than 70% of the building' s tenants must be of low or moderate income. In order to address potential displacement impacts resulting from increased rents in rehabilitated units, the City has coupled the Rental Rehab Program with its rental assistance program. Existing Low Income tenants in rehabilitated buildings are offered Rent Vouchers to ensure their housing costs will not exceed 30% of their gross monthly income. (Program Action 4.3) Handicapped Grant Program Handicapped households have special needs which include access ramps, wider doorways, assist bars in the bathrooms, lower cabinets, and special access sources to second stories. The City is working with the Dayle MacIntosh Center for the disabled of Orange County to encourage owners of rental units to make a share of such units available for accessibility modifications. The City utilizes CDBG funding to offer $1 , 500 handicapped modification grants to multi -unit property owners to encourage modification to existing units to meet these special needs of the handicapped. The Housing Element recommends the City undertake more intensive marketing of this program to widen participation . (Program Action 1 . 5) Home Weatherization Improvements As residential energy costs continue to rise, increasing utility costs reduce the affordability of housing, thus aggravating the City's current shortage of affordable units. Both the Southern California Gas Company and Southern California Edison offer a variety of energy conservation services designed to help low-income, senior citizens, permanently handicapped, and non-English speaking customers control their energy use. Homeowners or renters may qualify for the following types of weatherization improvements free of charge: attic insulation, weather stripping, caulking, water heater insulation blankets, water-saving showerheads, heating/cooling duct insulation, other types of limited home repairs which increase energy efficiency. (Program Action 6.3) Code Enforcement One of the primary objectives of the City's code enforcement program is to bring substandard housing units into compliance with City codes. The code enforcement program is operated through the City's Community Development Department whose field inspectors respond to complaints related to substandard housing, property maintenance, overgrown vegetation, trash and 3-40 debris, inoperable vehicles, illegal conversions, improper occupancy, and other nuisance and zoning complaints. Upon inspection, if violations of code exist, a violation notice is issued to the responsible party. A reasonable period of time is given to bring the violation into compliance. Failure to comply will result in code compliance proceedings. Citations may be issued by code enforcement officers in cases where health and safety may be threatened. Due to citizen complaints and community concerns regarding deterioration within the City, the code enforcement program has been expanded to provide three full time field inspectors and a fourth part-time inspector. This staffing level enables the Community De.velopment Department to respond to the average monthly caseload of 125 code complaints within a reasonable response period. (Program Actions 4.5, 4.8, 4.9) Condominium Conversion Ordinance The City of Huntington Beach has adopted a stringent Condo Conversion Ordinance that requires converted units to conform to the requirements of the City's Planned Unit Development (PUD) Ordinance. Since most existing multi -family housing units have been developed to standards that generally require substantially less open space and parking than that required under the PUD Ordinance, these requirements serve as a significant disincentive for condominium conversions. The identified action for this program indicates review and potential revision of the City's current Condominium Conversion Ordinance to allow modified requirements if a portion of the units are set aside for Low and Moderate Income households. (Program Action 5.3) Interest Rate Write-Downs for Existing Affordable Housing A community's existing affordable housing stock is a valuable resource which should be conserved and, if necessary, improved to meet habitability standards. The City of Huntington Beach has several federally assisted (Section 236) housing projects with the potential for conversion to market rate with expiration of the original loan. In order to address this potential loss in affordable units, the City is in the process of developing a Multi -Family Unit Interest Rate Write-Down Program. This program will offer a lump sum write-down of an existing interest bearing note to reduce debt service on existing multi -family apartment complexes. In return, the property owner will execute with the City a recorded covenant requiring the continuance of affordable rental rates to low and moderate income households or a minimum of fifteen years. (Program Action 5.2) A second approach which may be pursued to conserve existing affordable units would be for a non-profit sponsor to purchase Section 236 or other subsidized projects at the current market value with financing provided by tax-exempt multi -family revenue bonds issued by the City. The rating of these tax-exempt securities could be enhanced by pledge of the redevelopment housing set-aside funds, thus reducing the net interest cost of the mortgage loan. 3-41 3.6. 1 .3 Housing Services Home Sharing Many seniors who would prefer to live independently resort to institutionalized living arrangements because of security problems, loneliness, or an inability to live entirely independently. A City-funded shared housing program is currently offered at Roger' s Senior Center in Huntington Beach. Roommate matches are made between seniors based on telephone requests. The Program's Administrator indicates requests for home sharing are sporadic--six to eight matches made for months in a row followed by months without any requests. The program action for home sharing indicates more active marketing should be undertaken to better advertise the program's availability to seniors in the community. In addition, the program action calls for investigating the development of a pilot project to match residents of varying age categories which links in with Project Self-Sufficiency. (Program Action 2. 12) Project Self-Sufficiency In attempts to curtail additional persons and families from becoming homeless, the City' s Economic Development Department runs "project Self-Sufficiency" (PSS) . As its name suggests, the program aims to make persons independent of government subsidies and become self-sufficient. To meet this goal , PSS provides housing assistance in the form of Section 8 housing vouchers to low-income, single parents who are either currently homeless or at risk of becoming homeless . The program also matches the single parent with the appropriate agencies in the community to receive needed assistance such as food, clothing, childcare and job training. In order to qualify for the voucher program, persons must reside or work in Huntington Beach or come from a homeless shelter sponsored by the Huntington Beach Resource Board. When PSS is unable to provide services to those in need, the program refers these persons to other social services in the surrounding area. The program is currently funded primarily through CDBG grants and private sector donations . (Program Action 2. 10) Other Homeless Services The City of Huntington Beach provides funding ($43,000 in CDBG monies in 1988) to a variety of social service agencies which provide services to the area's homeless population; 15 percent of the City's CDBG budget is allocated towards social service providers. Services provided by these organizations include lodging, food, clothing, bus coupons, housing referrals and counseling. In addition, a new shelter targeted at assisting the City's numerous adolescent homeless is set to open later this year. The City has indicated it may provide supplementary operational funds to this shelter, the Huntington Beach Youth Shelter. As part of the current update to the City's Zoning Ordinance, appropriate zones will be identified for the development or rehabilitation of transitional housing and emergency shelters for the homeless. The City will provide public notification in the newspaper, as well as directly notify local service providers of the Zoning Ordinance update to solicit community input. (Program Actions 2. 11 , 3.6) 3-42 3.6. 1 .4 Removal of Governmental Constraints Senior Residential Suffix Zoning The Senior Citizen Residential suffix was adopted to establish standards for- residential developments designed to house senior citizens. By adopting these standards, the City recognizes that housing needs for senior citizens vary in some respects from the needs of non-seniors. When the suffix is applied to a property, certain development standards will be reduced; specifically, those related to floor area, site coverage, building separation, building bulk, parking and open space. These reduced standards will enable senior citizen projects to be built and sold/rented at a more affordable cost. (Program Action 1 .2) Second Unit Ordinance The City of Huntington Beach has amended its ordinance code by adding a new subsection pertaining to second units in single-family residences. A second unit may be added to an existing single family structure subject to standards within the ordinance. This ordinance can provide a cost effective means of serving additional development through the use of existing infrastructure and should provide relatively affordable housing for low and moderate income small households within existing under- utilized structures . (2.0 Policies) Mobilehome Overlay Zone and Conversion Ordinance The Mobilehome Overlay Zone and Conversion Ordinance contains requirements for applying the mobilehome park overlay zone and provides minimum standards for an acceptable mobilehome relocation assistance plan if a mobilehome park is converted to other uses . Many senior citizens and low income households presently reside in the City' s mobilehome parks. The goal of the mobilehome relocation assistance plan is to provide alternative housing opportunities for mobilehome residents who may be displaced as a result of the conversion of mobilehome parks to other land uses. Any displacement of mobilehome units (or any low or moderate income housing) resulting from City-sponsored redevelopment activities will be replaced in equal number within four years and will be available at affordable rates . (2.0 Policies) Fast Track Processing The City is considering developing an expedited processing procedure for projects with an affordable component which require approval by the City's Planning Commission or Council . This program would be helpful in reducing holding costs while processing the approvals necessary for zone changes, density bonuses, plan check and building permit procedures, thereby resulting in lower construction costs and more affordable housing. The specific procedures for fast-track processing of affordable housing projects could be developed as part of the update to Division 9 of the City Municipal Code. (Program Action 2.8) 3-43 3.6. 1.5 Fair Housing Orange County Fair Housing Council Huntington Beach is a member of the Orange County Fair Housing Council and will contribute $32,000 in Community Development Block Grant funds for its support during fiscal year 1989-90. The primary programs of the Fair Housing Council include: 1) housing discrimination response; 2) landlord- tenant counseling; 3) low income housing advocacy; 4) publication of the semi -annual Forum newsletter; and 5) community awareness and education. (Program Action 1 . 1) 3.6.2 Housing Programs Under Study In order to increase affordable housing opportunities in Huntington Beach, the following additional programs are currently under study by the City. Reverse Mortgage Program The most substantial asset of most elderly homeowners is their home, which in Huntington Beach has increased significantly in value with inflation. And while owning a home may provide a rich asset base, with the onslaught of retirement and a fixed income, many elderly homeowners quickly become income poor. Home maintenance repairs multiply as the home ages, and with the rising costs in home utilities, insurance, and taxes, maintenance often gets deferred altogether, creating an unsafe and often depressing living environment for the senior. An alternative option for the elderly homeowner is to draw needed income from the accumulated equity in their homes through a reverse mortgage. A reverse mortgage is a deferred payment loan or a series of such loans for which a home is pledged as security. Qualification for the loan is based primarily on property value rather than on income, allowing the elderly homeowner on a fixed income to receive a loan for which he or she would otherwise not qualify. Most reverse mortgage programs permit homeowners to borrow up to 80 percent of the assessed value of their property, to receive needed principal of up to 25 percent of the loan, and then to receive monthly annuity payments for the life of the loan. The San Francisco Development Fund offers free training to communities interested in organizing a reverse mortgage program for seniors . Rather than making the loans themselves, the City's role could be to facilitate the initiation of reverse mortgage loans through the following steps . First, the City would need to provide educational and counseling services to seniors interested in pursuing a reverse mortgage. Secondly, the City would need to work with local lending institutions which currently provide these loans to gain a thorough understanding of the application process. The City could then work with the seniors to complete the loan applications and assist in providing any other necessary information to the bank. Local contacts which may be helpful to the City in setting up a reverse mortgage program include the City of Orange, which has been operating their mortgage program for over a year, and Security Pacific National Bank in Downey, which has begun offering reverse mortgage loans. 3-44 Non-Profit Construction A non-profit housing corporation works to develop, conserve and promote affordable housing, either owner or renter-occupied. Often the non-profit is involved with what is called "assisted housing" where some type of government assistance (such as Section 8) is provided to the individual household to keep rents affordable. Housing corporations can work with assisted housing in several ways: 1 . The non-profit may assemble a development package and sell it to a profit-motivated developer. The package usually consists of a site, project design, the necessary permits, and, in some cases, preliminary financing commitments. The advantage of this method is that the non-profit can get low- and moderate-income housing built while ending its involvement early in the process and going on to other projects . The disadvantage is that the non-profit may lose control over the development at the time of sale. However, the non-profit could negotiate to retain some control over the project in the recorded contractual agreement between it and the developer. 2. The non-profit may participate in a joint venture with a profit-motivated developer. Though it usually performs the same functions as in the first method, the non-profit can retain more control over the development and gain hands-on development experience while benefitting from the financial resources of the for-profit developer. In this option, however, the non-profit has a longer involvement and will have to negotiate the rights and responsibilities of the two partners. 3. In the third approach, the non-profit is the developer. In this case, the group must employ staff with necessary expertise or rely heavily on consultants. In return, the group has total control over the development. This option requires more risk, money, time, effort, and capability on the part of the non-profit. A non-profit housing corporation can help meet the goals for additional housing by implementing or assisting with the implementation of programs described in the Housing Element. The City should coordinate with local non-profit groups or encourage the formation of a housing development corporation by interested parties in the community to facilitate the development and improvement of low cost housing in Huntington Beach. 3-45 Neighborhood Housing Services The Neighborhood Housing Services (NHS) program operates as a private non-profit group run by local residents, business leaders, and local government. The purpose of the NHS is to assist in rehabilitation and preservation of housing units in neighborhoods where the housing stock is deteriorating. Services provided by the NHS can include rehabilitation counseling, assisting homeowners in working with contractors, advise about financing, revolving loans for rehabilitation, and involving the neighborhood in the community. Limited funding for the NHS revolving loan fund is available through the Neighborhood Reinvestment Corporation (NRC) , a non-profit public corporation authorized by Congress to encourage revitalization of residential neighborhoods. NRC provides $50,000 grants for the revolving loan fund and makes available technical assistance to develop and maintain the NHS. Limited Equity Cooperatives Limited equity cooperatives provide a means of homeownership to people who could not otherwise afford to buy housing. •A housing cooperative is owned by a corporation made up of the cooperative's residents. Members do not own the individual units in which they live, but rather they own a share in the corporation and thereby have the exclusive right to occupy a specific unit. In a limited equity cooperative, the amount for which a share may be sold is limited to ensure the long term affordability of the unit. Affordability is protected because the corporate entity holds a blanket mortgage where vacated units are not refinanced and resold, thereby protecting them from price inflation. The City can maintain information and limited equity cooperatives as reference for groups trying to organize a co-op. Mobile Home Park Assistance Program This program, offered by the State Department of Housing and Community Development, provides financial and technical assistance to mobilehome park residents who wish to purchase their mobilehome parks and convert the parks to resident ownership. Loans are made to low-income mobilehome park residents or to organizations formed by park residents to own and/or operate their mobilehome parks, thereby allowing residents to control their housing costs . Loans are limited to 50 percent of the purchase price plus the conversion costs of the mobilehome park, and are awarded by the State on a competitive basis. Applications must be made by mobilehome park residents who must form a resident organization, and a local public entity as co-applicants . The City could help to facilitate the use of this program by advertising its availability to mobilehome park residents, and by serving as co-applicant for resident organizations applying to the State for funding. 3-46 APPENDIX A STATE HOUSING ELEMENT REQUIREMENTS STATE HOUSING ELEMENT REQUIREMENTS REQUIRED HOUSING ELEMENT COMPONENT REFERENCE A. Housing Needs Assessment 1 . Analysis of population trends in Huntington Data Report, Beach in relation to regional trends Section 2. 1 2. Analysis of employment trends in Huntington Data Report Beach in relation to regional trends Chapter 5.0 3. Projection and quantification of Huntington Housing Element Beach's existing and projected Section 3.4 housing needs for all income groups 4. Analysis and documentation of Huntington Beach's housing characteristics including the following: a. level of housing cost compared to Data Report, ability to pay; Section 3.5 b. overcrowding; Data Report, Section 3.3 c. housing stock condition. Data Report, Section 4.3 5. An inventory of land suitable Housing Element for residential development including Section 2.3 vacant sites and sites having redevelopment potential and an analysis of the relationship of zoning, public facilities and services to these sites 6. Analysis of existing and potential Housing Element governmental constraints upon the Section 2.2 maintenance, improvement, or develop- ment of housing for all income levels 7. Analysis of existing and potential Housing Element nongovernmental and market Section 2.2 constraints upon maintenance, improve- ment, or development of housing for all income levels A-1 t I STATE HOUSING ELEMENT REQUIREMENTS (continued) REQUIRED HOUSING ELEMENT COMPONENT REFERENCE 8. Analysis of special housing needs: Housing Element handicapped, elderly, large families, Section 2.1 and female-headed households 9. Analysis concerning the needs of Housing Element homeless individuals and families in Section 2. 1 Huntington Beach 10. Analysis of opportunities for energy Data Report, conservation with respect to Section 7.2 residential development B. Goals and Policies 1 . Identification of Huntington Beach's Housing Element community goals relative to maintenance, Section 3.2 improvement, and development of housing 2. Quantified objectives and policies relative Housing Element to the maintenance, improvement, and Section 3.2 development of housing in Huntington Beach C. Implementation Program An implementation program should do the following: 1 . Identify adequate sites which will be Housing Element made available through appropriate action Section 3.2 with required public services and facilities for a variety of housing types for all income levels 2. Program to assist in the development of Housing Element. adequate housing to meet the needs of Section 3.2 low- and moderate-income households 3. Identify and, when appropriate and Housing Element possible, remove governmental constraints Section 3.2 to .the maintenance, improvement, and development of housing in Huntington Beach 4. Conserve and improve the condition of Housing Element the existing affordable housing stock Section 3.2 in Huntington Beach 5. Promote housing opportunities for all Housing Element persons regardless of race, religion, sex, Section 3.2 marital status, ancestry, national origin or color A-2 APPENDIX B City of Huntington Beach 1989 Housing Element Update Technical Data Report 'XI � I\; HUNTINGTON BEACH HOUSING ELEMENT TECHNICAL DATA REPORT Revised May 1990 Prepared by: Cotton/Beland/Associates, Inc. 1028 North Lake Avenue Suite 107 Pasadena, California 91104 #555 r � CITY OF HUNTINGTON BEACH HOUSING ELEMENT TECHNICAL REPORT TABLE OF CONTENTS Page 1 .0 INTRODUCTION 1. 1 Purpose of Report 1 1 1 .2 Sources of Information 1-1 1 .3 Huntington Beach Setting 1-2 .A 2.0 POPULATION CHARACTERISTICS AND TRENDS 2.1 Population Growth 2-1 2.2 Age Composition 2-3 2.3 Race and Ethnicity 2-6 3.0 HOUSEHOLD CHARACTERISTICS 3. 1 Household Composition 3-1 3.2 Household Size 3-2 3.3 Overcrowding 3-2 3.4 Household Income 3-3 3.5 Housing Affordability 3-7 3.6 Special Needs Groups 3-9 4.0 HOUSING UNIT CHARACTERISTICS 4. 1 Housing Growth 4-1 4.2 Housing Type and Tenure 4-2 4.3 Age/Condition of Housing Stock 4-3 4.4 Housing Costs 4-13 ` 4.5 Share of Region's Housing Needs 4-26 4.6 Housing in the Coastal Zone 4-27 5.0 EMPLOYMENT CHARACTERISTICS 5-1 _ 6.0 HOUSING CONSTRAINTS 6. 1 Market Constraints 6-1 6.2 Governmental Constraints 6-2 6.3 Environmental and Infrastructure Constraints 6-8 i 7.0 HOUSING OPPORTUNITIES _J 7. 1 Availability of Sites for Housing 7-1 7.2 Energy Conservation 7-12 61 LIST OF TABLES Table Page 1 Regional Population Growth: 1970-1988 2-1 2 Population Trends: Huntington Beach and 2-2 Surrounding Areas, 1980-1988 3 Projected Population Growth: 1988-2010 2-3 4 Age Characteristics of Population: 1980 & 1988 2-5 5 Ethnic Composition: 1980 & 1988 2-6 6 Household Type: 1980 & 1988 3-1 7 Household Size: 1980-1993 3-2 8 Median Household and Family Income: Huntington 3-3 Beach and Surrounding Areas, 1979 9 Income Groups: 1979 & 1988 3-5 10 1988 Income Distribution by Subarea 3-8 11 Lower Income Households Paying Greater Than 30% 3-9 of Income for Shelter 12 Summary of Special Needs Groups: 1988 3-9 13 Social Service Agencies Which Provide Services 3-14 to the Homeless in the Huntington Beach Area 14 Housing Trends: Huntington Beach and Surrounding 4-1 Area, 1980-1988 15 Housing Trends: 1980-1988 4-2 16 Age of Housing Stock: 1988 4-5 17 Housing Stock Conditions: 1988-1991 4-6 18 Housing Values: Huntington Beach and Surrounding 4-13 Areas, 1980 1 19 Single-Family Residential Sales: 1988 4-14 20 Single-Family Residential Sales: Downtown/Old Town 4-15 _.1 �J . LIST OF TABLES I (Continued) ^1 Table Page -� 21 Single-Family Residential Sales: Harbor/Bolsa Chica 4-16 22 Single-Family Residential Sales: North Central 4-17 23 Single-Family Residential Sales: Southeast 4-18 24 Condominium Sales Activity: 1988 4-19 25 Condominium Sales: Downtown/Old Town 4-20 26 Condominium Sales: Harbor/Bolsa Chica 4-21 27 Condominium Sales: North Central 4 22 i 28 Condominium Sales: Southeast 4-23 29 Monthly Rents: Huntington Beach and Surrounding 4-24 Areas, 1980 30 Monthly Rental Rates: 1988 4-25 31 Monthly Rental Rates by Subarea: 1988 4-26 31A 1989-1994 Household Needs by Income Group 4-26 32 Affordable Housing Projects within Three Miles of 4-28 Coastal Zone 33 Employment Trends: 1980 & 1984 5-2 34 Residential Development Capacity of Land Use Plan 6-4 35 Summary of Development Fees for Typical Low Density 6-6 Residential Project 36 Summary of Development Fees for Typical High Density 6-7 Residential Project 37 Development Processing Time in Huntington Beach and 6-8 Surrounding Communities 38 Vacant Lands Suitable for Residential Development: 7-4 1988 39 Residential Recycling Activity . 7-5 40 Potential Residential Development Summary 7-11 LIST OF FIGURES �} Figure Page j 1 Regional Location Map 1-3 2 Population Growth: 1980 - 1988 2-4 3 Race and Ethnicity: 1988 2-8 4 Median Household Income: 1988 3-6 5 Housing Tenure: 1988 4-4 6 Community and Neighborhood Enhancement Areas 4-7 `?! 7 Median Single-Family Residential Sales Prices: 1988 4-15. 1 8 Median Condominium Sales Prices: 1988 4-20. 1 ? 9 Median Rental Rates: 1988 4-25. 1 --, 10 Previously Constrained Lands Suitable for Residential Development 7-2 11 Bolsa Chica Residential Development Plan 7-9 1 ._l J 1.0 INTRODUCTION 1. 1 Purpose of Report Huntington Beach is a diverse community with households of varied socio-economic, racial and cultural backgrounds. Providing adequate and affordable housing opportunities for its diverse resident population is both a concern and an obligation of the City. The Housing Element is an official municipal response to :the need to provide housing for all economic segments of the community. This Technical Data Report provides an overview of the population, socio-economic, and housing characteristics of the City of Huntington Beach. This information will help to define the City' s current and projected housing needs, and provide direction in developing the City's Housing Element goals, policies and programs. It has been prepared with the assistance of City staff, and will be reviewed by a Housing Committee comprised of several City Council members and City residents. The final 1 Technical Data Report will serve as the basis for developing the City's 1 Housing Element which will set forth a comprehensive housing strategy for the City of Huntington Beach. This report will serve as a technical appendix to the Housing Element, and will be required to be updated at least every five years along with the Element. 1.2 Sources of Information Several sources of information provided insights into recent demographic and housing trends that have taken place within the City. Data from the 1980 Census and from the City's 1984 Housing Element were used as the base year for comparison for many of the tables in this report. Current housing unit data was obtained from the State Department of Finance, SCAG, and from City records and reports. Demographic and household information, e.g. current ethnic mix, household income, have primarily been obtained from estimates prepared by Urban Decision Systems, Inc. (UDS) : UDS annually prepares demographic/household updates based on data supplied by Federal , state, county and city sources. In order to ensure consistancy with population and housing unit totals obtained from the Department of Finance, slight adjustments were made to the UDS data to reflect these ( totals. 1 In addition to providing household information on the City-wide level , the { City has been divided into four geographic subareas to allow comparison 1 among different areas in Huntington Beach. These subareas are comprised of Oldtown/Downtown, Harbor/Bolsa Chica, North Central and Southeast Huntington Beach, and are consistent with the Community Analysis areas defined by the Orange County Forecast Analysis Center. r 1-1 J I"l 1 .3 Huntington Beach Setting The City of Huntington Beach is an older suburban community situated in the northern coastal section of Orange County. The City is bordered by the unincorporated territory of Seal Beach to the northwest, the cities of Westminister and Fountain Valley to the north, the City of Costa Mesa to the east, and the Pacific Ocean to the south. The City's regional location is depicted in Figure 1 . The dominant physical characteristic of the City are its miles of � coastline, including the BolsaiChica and Huntington Beach State Parks. Other points of interest include Bolsa Chica Ecological Reserve, Huntington Harbor, and the natural waterways of Anaheim Bay Landing. Existing develoment pressures in Huntington Beach can be attributed to its L: coastal locale and its central location within the Los Angeles - San Diego urbanizing corridor. f l � J 1-2 Nwy so r.�.. Los J Angeles p°mona Fwy Whittier r Los Angeles County u3 F—Orange County �s'aaCo 0 LL .\ m 00 o o CD HWY 91 . Artesia p` A' �y .r• is r a� 2 s0 Ln a � Anaheim 3 a Orange Long Beach j HWY 22 Santa y s Ana 2 i�o 'cam' HUNTINGTON BEACH `yy Newport Beach Laguna Beach 0 5 North scale in miles - FIGURE 1 Cab REGIONAL LOCATION MAP 2.0 POPULATION CHARACTERISTICS AND TRENDS _.� 2.1 Population Growth The entire Southern California region, including Orange County, is among the fastest growing in the nation. The older, well -established metropolitan areas of Los Angeles and central Orange County have been extending outward to the counties to the north and east. The southern and eastern portions of Orange County, western San Bernardino and Riverside Counties, and southern Ventura County are the most recent areas to be developed around the older urban core of Los Angeles. Southern California, which includes Imperial , Orange, San Diego, Riverside, San Bernardino, Los Angeles, Ventura, and Santa Barbara Counties grew from 11,668,707 persons in 1970 to 13,750,217 persons in 1980, representing a population gain of over 17 percent (see Table 1) . I During this same ten-year period, Orange County's population increased from 1 ,420,386 persons in 1970 to 1 ,932,708 persons in 1980, a gain of 512,322 persons or 36 percent. Growth during the 1980s has been rapid as well . Between 1980 and 1988, the population of the eight county area grew by an additional 2,651,577 persons (19%) . Orange County increased in population by 306,013 persons between 1980 and 1988, a 15.8 percent increase. TABLE 1 REGIONAL POPULATION GROWTH: 1970-1988 POPULATION CHANGE 1970 - 1988 COUNTY 1970 1980 1988 No. Imperial 74,492 92, 110 111, 105 36,613 + 49.2 Los Angeles 7,032,075 7,477,503 8,555,937 1,523,862 + 21 .7 Orange 1,420,386 1,932,708 2,238,721 818,335 + 57.6 Riverside 459,074 663, 166 946,074 487,000 +106. 1 San Bernardino 684,072 895,016 1 ,239,967 555,895 + 81 .3 San Diego -1,357,854 1,861,846 2,327,684 969,830 + 71 .4 y Santa Barbara 264,324 298,694 345,003 80,679 + 30.5 j Ventura 376,430 529, 174 637,407 260,977 + 69.3 Source: U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report; California Dept. of Finance, Controlled Population Estimates for 1-1-88. J 2-1 ' The 1988 population of Huntington Beach is estimated by the California Department of Finance to be 187,740 persons, making Huntington Beach the third largest city in Orange County behind only Anaheim and Santa Ana. As illustrated in Table 2, Huntington Beach's population grew by approximately 10% between 1980 and 1988, representing an average annual growth rate of 1 .25%. This population growth rate is comparable with most �] jurisdictions surrounding Huntington Beach. The population growth rate in j Orange County was somewhat higher than in Huntington Beach, reflecting the fact that the City is more built out than many areas of the County. TABLE 2 POPULATION TRENDS: HUNTINGTON BEACH AND SURROUNDING AREAS 1980-1988 Jurisdiction 1980(a) 1988 b % Increase Anaheim 219,311 243,021 10.8 Costa Mesa 82,562 91,891 11 .3 Fountain Valley 55,080 55,702 1. 1 Huntington Beach 170,505 187,740 10. 1 Newport Beach 62,556 69,597 11 .3 Santa Ana 203,713 231,460 13.6 Westminster 71, 133 73,763 3.7 Orange County SMSA 1,932,709 2,238,721 15.8 Source: (a) U.S. Department of Commerce, Bureau of the Census, 1980 Census Report. (b) California Department of Finance, Controlled Population Estimates for 1-1-88. POPULATION TRENDS: HUNTINGTON BEACH 1 AND SURROUNDING AREAS 1980-1988 i 20X � s cl C� p/ L 1 /O b C L 4 g G i d : g 1 V y V 3 d i 3 5 a. 3f a F i s: s fi g Qp//O Anaheim Costa r Fountain J n n Hntngtn Newport ,.'Santa Wstmstr. Oran.g'e.Co. Mesa Valley Beach Beach Ana 2-2 'J 1 ' Among the City s four subareas, the Downtown/Old Town neighborhood experienced the greatest amount of growth between 1980 and 1988, increasing in population by more than 23 percent (see Figure 2) . The Harbor/Bolsa Chica subarea had the second highest growth rate, exhibiting a 16 percent increase in its resident population. The Southeast (8.3%) and North Central (3. 1%) subareas grew by the smallest margin of increase, reflecting limited availability of developable land in these areas. .� Table 3 projects population within Huntington Beach through the year 2010. According to estimates prepared by the Orange County Forecast Analysis Center, the City's population is expected to grow 13.9 percent between 1988 and 2010, representing an average annual growth rate ( .63%) significantly below that experienced during the 1980-1988 period (1 .25%) . This growth would add 26,156 new residents to Huntington Beach, for a 2010 population of nearly 213,900. Factors which may influence future growth in Huntington Beach include growth controls, the availability of land suitable for residential development, and the price of housing. TABLE 3 j CITY OF HUNTINGTON BEACH PROJECTED POPULATION GROWTH: 1988-2010 ,l Change II 1988-2010 1988 a 1995 b 2000 b 2010 b No. % Total Population 187,740 199,577 203,291 213,896 26, 156 13.9 1n Households 187,162 198,963 202,665 213,237 26,075 13.9 In Group Quarters 578 614 626 659 81 14.0 Source: (a) Calif. Dept. of Finance, Controlled Population Estimates for 1-1-88. b) Orange County Forecast Analysis Center, OCP-88 Modified, May 2, 1989. Households and group quarters are estimates based on 1988 DOF proportions for households and group quarters. 2.2 Age Composition Table 4 illustrates the age distribution of Huntington Beach's residents in 1980 as reported by the census and in January 1988 as estimated by Urban Decision Systems. The median age in Huntington Beach in 1980 was 28.9, as compared to 29.5 in the County, 29.9 in California, and 30.0 in the United States. According to Urban Decision Systems, th.e median age in Huntington Beach had increased to 31 .9 in 1988. This increase in the median age reflects an actual decline in the number 'of children under 20 years of age in Huntington Beach, indicating a decline in the influx of families with children. Considered alongside the limited growth in the 1 2-3 i • I: • . I I 6F w �'•% 1980: 59,151 1988: 61,027 ♦♦:\ ��� •�\ % INCREASE: 3.1% °o ''•� •; G � NORTH / \. / �'•�� CENTRAL /DOWN-,. �,�.� .• �\ \ TOWN/ \ �•� �^w Meadowlark w �\ OLD- SOUTHEAST /�•. \ Airport / \ ,\`\ TOWN \\ t5 � \� / ,\ `\ � �° 1980: 581568 \ / ,\ 1980: 29 312 \ �. HARBOR/ -�"�•.� \ 1988: 63,418' • BOLSA CHICA, ;. ;j 1988: 36,073 •.• ■ ,•� \ % INCREASE: 8.3% •` .\ ♦. /Vo «r•''«.. .............. ■va•, !♦�� % INCREASE: 23%: • fiuntington •• '��� C • /• H ur arbo • '� `\ D • I• 1980: 23,474 .• •• •� � • ,,. � Edison Company • I •• 8 o I s a .:C h i c a ,\ Generating. ' �s r. (1988: 27,222` •�• .. "<.�• CliffSea Plan CountrYiffub \ o PA# CffK J: % INCREASE: 16% .•• P r c s c r v e t� • �\ --�" ■ •. ��`..........■..........■r..•• COAST f 1 ..�. P A C F I C O C E A N 0 3634 North coals In feet FIGURE 2 POPULATION GROWTH:1980-1988 TABLE 4 CITY OF HUNTINGTON BEACH { AGE CHARACTERISTICS OF POPULATION: 1980 & 1988 1980(a) 1988 b r') # of % of # of % of Age Range Persons Population Persons Population 0-5 13,024 7.6 13,517 7 .2 ' 6-13 21 ,341 12.5 19,337 10.3 14-17 13,074 7.7 11 ,828 6.3 18-20 10,237 6.0 9,387 5.0 n 21-24 14,550 8.5 14,456 7.7 25-34 32,910 19.3 36,603 19.5 35-44 24,724 14.5 34,356 18.3 45-54 17,808 10.4 20,276 10.8 55-64 12,717 7.5 13,705 7.3 �. 65+ 10, 120 5.9 14,268 7.6 TOTAL 170,505 100.0 187.740 100.0 MALE 84,634 49.6 92,369 49.2 FEMALE 85,871 50.4 95,371 50.8 Median Age 28.9 31 .9 Source: (a) U.S. Department of Commerce, Bureau of Census, 1980 Census Report. (b) Urban Decision Systems, Demographic Trends; 1980-88-93. CITY OF HUNTINGTON BEACH: AGE CHARACTERISTICS OF POPULATION 20% 01980 f L9 1988 s r _o ,r 5 10% ¢ c 1 � a o �CL § fi s s Ei � 2 .J 4 4 �J 0 6-13 14 17 1 20 21 24 25-34 35-44 45 54 55 64 65 Age Groupings 2-5 4• t City's young adult population (age 25-34) , these factors support the finding that the City's housing stock is inaccessible to many first-time jj homebuyers. The mid-adult age cohort (age 35-44) experienced the greatest increase in population over the 1980-88 per:od, the higher income of this group more able to afford the City's costly housing market. The City's elderly population (those 65 and over) increased from 5.9 percent of the population in 1980 to 7.6 in 1988, representing an increase of over 4,000 persons. Nonetheless, this is still below both the County's (8.3%) and State's (9.0%) proportion of elderly in 1980. The proportion of elderly persons in Huntington Beach can be expected to continue to increase as E those persons between the age of 35 and 64 (over one-third of the population) grow older, consistent with nationwide trends of a large aging population. 2.3 Race and Ethnicity .4 Table 5 presents the race and ethnic make-up of Huntington Beach in 1980 as reported by the census and in 1988 as estimated by Urban Decision Systems. As this table reveals, the majority of Huntington Beach's population is White and comprised 90.4 percent of the City's 1980 A` population, contrasting to 86.4 percent Whites County-wide. The proportion of White persons had decreased slightly to 88.6% in 1988, reflecting an influx of other ethnic groups into the community. The second largest ethnic group in the City is persons of Spanish/Hispanic origin, representing eight percent of the City's 1988 population; this is substantially below the County-wide proportion of 14.8 percent in 1980. Asian/Pacific Islanders comprise 7.7 percent of the City's population, reflecting a significant increase over 1980; the County-wide proportion of Asian/Pacific Islanders was 4.5 percent in 1980. Blacks, American Indians, and "Other" ethnic groups are the least represented groups in Huntington Beach, each comprising just over one percent of the City's 1988 population. TABLE 5 CITY OF HUNTINGTON BEACH ETHNIC COMPOSITION: 1980 & 1988 1980(a) 1988(b) Race and Ethnicity Po ulation Total Po ulation Total t White 154, 156 90.4 166,338 88.6 Black 1,218 .7 2,065 1 . 1 Amer. Indian 1 ,204 .7 2,065 1 . 1 Asian/Pacific Islander 8,453 5.0 14,456 7.7 Other 5,474 3.2 2,816 1 .5 J Total 170,505 100.0 187,740 100.0 Spanish/Hispanic Origin 13,427 7.9 15,019 8.0 Source: (a) U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report. (b) Urban Decisions Systems, Demographic Trends: 1980-88-93. 2-6 The four geographic subareas in the City evidence some differences in racial composition as illustrated in Figure 3. The Harbor/Bolsa Chica and {'1 Downtown/Old Town areas are the least racially diverse, White persons it comprising over 91 percent of their resident population. North Central Huntington Beach, on the other hand, exhibits the highest concentration of Spanish/Hispanic (10%) and Asian/Pacific Islander (9.9%) populations in the City. The resident population in Southeast Huntington Beach generally parallels the ethnic make-up of the City as a whole. 9 I . _I I _l 2_7 .g,4 1'�Fs `Ii� '\ter• � •,♦,/�♦•• ♦'i /14 WHITES: 52,279 (85.6%) ep ♦♦♦�. ' / •\� I; BLACKS: 920 (1.5%) 'yf� G(F�r ♦',� �. AMER. INDIAN: 859 (1.4%) ASIAN: 6,050 (9.9%)f NORTH / ♦�, ;� �\ CENTRAL ,'�Fti OTHER: 919 (1.5%)\ /\ 0�q�' •♦♦i� �� �f �: \ L` SPANISH/HISPANIC: 6,103 (10%) DOW OWN/ � `\) Meadowlark OLD- \\ SOUTHEAST :\ /♦;� \ Airport /w\ `\ TOWN WHITES: 56,252 (88,7%) /�.•� ,\ / ,\ -� ,\`\ BLACKS. 634 (1.0%) . 00� `�� �.•• HARBOR/\ `\ - _ t•,\ `\ AMER. INDIAN: 571 (.9%) ♦.• WHITES: 24,772 (91%) ::;-.!., WHITES: 33.028 (91.6%) \ ASIAN: 5,073 (8.0%) BOLSA CHICA ,•� _ BLACKS: 191 (.7%) •� �.� BLACKS: 428 (1.2%) `\ OTHER: 888 (1.4%) 0� �♦ •wr AMER. INDIAN: 163 (.6%) .�•. H„auboguon ♦, r �•� o AMER. INDIAN: 390 (1.1%) `\ SPANISH/HISPANIC: 4,186 (6.6%) �. ,•• `•, r Generating 6K ♦ ASIAN: 1,851 (6.8%) • ASIAN: 1 473 (4.1%) `\ Company • I� ♦♦• OTHER: 245 (.9%.'( •, Sea Cliff \OTHER: 754 (2.1%) Plant vAC ■ ♦ Country Club �1 .• SPANISH/HISPANIC: 1,5423 (5.6%) .■ J■ SPANISH/HISPANIC: 3,210 (8.9%0 ,\ - -r' P^ r .♦ ... �.. � ` ��-..��- . - ��.�-�- ■..=—....-=�..=.■�' - COAST --- -�- ---- . P A C F I C O C E A N 0 3636 (C K North '�`" scale In leel FIGURE 3 RACE AND ETHNICITY:1988 3.0 HOUSEHOLD CHARACTERISTICS The characteristics of the population provide an essential component toward the understanding of growth and change in a community. In addition, information collected on the household level provides a good base for the analysis of a community's housing needs. The Bureau of the 1 Census defines a household as all persons who occupy a housing unit, which may include single persons living alone, families related through marriage or blood, and unrelated individuals living together. Persons living in retirement or convalescent homes, dormitories, or other group living situations are not considered households. 3. 1 Household Composition In 1980, there were a total of 61, 126 households in the City of Huntington Beach. According to the Department of Finance, the City had grown to I 68,395 households in 1988, representing an 11 .9 percent increase during the eight year period. As presented in Table 6, families represented the City's predominant household type in 1980 (72%) , equivalent to the County-wide proportion of family households. Single-person households represented the second largest household group in Huntington Beach, comprising 19 percent of all households. An estimated 9 percent of the City's households fell within the "other" category, representing individuals who share a housing unit and are not related by blood or marriage. Based on 1988 household estimates by Urban Decision Systems, the proportion of family households in Huntington Beach has decreased from 72 to 68 percent of total households. This decline in the proportion of family households could partially be reflective of the increased number and proportion of renter households in the City. Single-person households on the other hand have increased in relative magnitude since 1980 and currently comprise an estimated 23 percent of the City's total households. Finally, current estimates indicate a relatively constant proportion of non-related individuals living together, "other" households comprising 9 percent of the total . TABLE 6 CITY OF HUNTINGTON BEACH I HOUSEHOLD TYPE: 1980 & 1988 1 1980 1988 No. Households % of Total No. Households % of Total IFamilies 43,822 72% 46,388 6810 Singles 11,584 19% 15,854 23% Other 5,720 9% 6, 153 9% 4 Total 61 ,126 68,395 1 Source: U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report; { California Dept. of Finance Controlled Population Estimates for j 1-1-88; Urban Decision Systems, Demographic Trends: 1980-88-93. 3-1 I l3.2 Household Size Household size is an important indicator identifying sources of population growth as well as overcrowding in individual housing units. A city's average household size will increase over time if there is a trend towards larger families. In communities where the population is aging, the average household size may actually decline. Average household size in Huntington Beach was 2.78 persons per unit in 1980 and had decreased to 2.74, in 1988 (see Table 7) . Projections to 1993 depict a continued decrease in' the City's average household size to 2.67 persons per unit. Several factors occurring in Huntington Beach are influencing this trend. The proportional increase in renter-occupied housing which occurred between 1980-1988 contributes to smaller households, as does the relative decrease in family households. Orange County's household size is comparable to Huntington Beach's, and reflects the same trend towards decreasing household size. TABLE 7 CITY OF HUNTINGTON BEACH HOUSEHOLD SIZE: 1980-1993 1980(a) 1988 b 1993 c Huntington Beach 2.78 2.74 2.67 Orange County 2.78 2.75 Source: .(a) U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report. (b) Calif. Dept. of Finance Controlled Population Estimates for 1-1-88. (c) Urban Decisions Systems, Demographc Trends: 1980-88-93. 3.3 Overcrowding The Census defines overcrowded households as units with greater than 1 .01 persons per room, excluding bathrooms, kitchens, hallways, and porches. Ovecrowding reflects the inability of households to buy or rent housing which provides reasonable privacy for their residents. According to the 1980 Census, the incidence of overcrowding in Huntington Beach was minimal , with only 3.3 percent of all housing units defined as y overcrowded, compared with 5.6 percent County-wide. The census also reveals the prevalence of overcrowding among renter households, with 74 percent of the City's overcrowded households renter-occupied. 3-2 1 3.4 Household Income An important factor with respect to housing affordability is household income. While upper income households have more discretionary income to spend on housing, low and moderate income households are more limited in the range of housing they can afford. The presence of a large number of low and moderate income households in a community like Huntington Beach where housing costs are high is indicative of a high level of housing overpayment. Huntington Beach's median household income in 1979 wta)$24,O15, whereas median family income was slightly higher at $26,985. As illustrated in Table 8, household and family incomes in Huntington Beach approximate those in the County as a whole, with household incomes 6 percent higher than the County and family incomes just 4 percent higher. This table also reveals the wide variation in incomes among nearby jurisdictions. For example, the City of Fountain Valley had a median household income 31 percent higher than the County median, while the City of Santa Ana's F:. median household income was 18 percent lower than the median for the ? � County. Huntington Beach's 1979 household income is greater than that in the cities of Anaheim, Costa Mesa, Santa Ana and Westminster, and is surpassed by the nearby cities of Fountain Valley and Newport Beach. u TABLE 8 MEDIAN HOUSEHOLD AND FAMILY INCOME: HUNTINGTON BEACH AND SURROUNDING AREAS 1979 MEDIAN PERCENT MEDIAN PERCENT HOUSEHOLD ABOVE/BELOW FAMILY ABOVE/BELOW 1 JURISDICTION INCOME COUNTY MEDIAN INCOME COUNTY MEDIAN Anaheim $20,026 -11 .2% $23, 112 -10.8% Costa Mesa $19,309 -14.4 $22,485 -13.2% Fountain Valley $29,590 +31 .2% $31,051 +19.8% Huntington Beach $24,015 + 6.5% $26,985 +4. 1% Newport Beach $27,516 +22.0% $36,447 +40.6% Santa Ana $18,362 -18.6% $20, 193 -22.1% Westminster $22,930 + 1 .7% $25,050 - 3.3% Orange County SMSA $22,557 - $25,918 - Source: U.S. Dept. of Commerce, Bureau of Census, 1980 Census Report { (a) Family households are defined by the Census as households containing two or more persons related by blood, marriage, or adoption. Family household income is generally larger than household income because _.Ifamily households tend to have more members and, therefore, more I potential wage earners than non-family households. 3-3 } } The Department of Housing and Urban Development and the State Department of Housing and Community Development have developed the following income categories and theirdefinitions: - Very Low Income less than 50 percent of the regional (County) median. ° Low Income - between 51 and 80 percent of the County median. ° Moderate Income - between 81 and 120 percent of the County median. ° Upper Income - greater than 120 percent of the County median. The City's 1979 income distribution can be divided into these four income categories through interpolation, as presented in Table 9. In addition, estimates of 1988 household income in Huntington Beach have been obtained from Urban Decision Systems, and have been grouped into the four income categories based on a 1988 median household income of $44,400 for Orange County. Comparing the City's income distributions in these two years provides insight into the changing income characteristics of the City's population. Huntington Beach has experienced both a proportional and a numeric increase in households classified as Very Low, Low and Moderate Income ;} during the 1979-1988 period. Very Low Income households have experienced the greatest increase of any of income group, with 24.5 percent of the City's 1988 households earning less than half the county median income, as compared with 18 percent in 1979. Low Income households have experienced a more modest increase from 16.2 to 18.7 percent of total households, as have Moderate Income households which increased from 22.7 to 23.3 percent of total households. Finally, the City has experienced a significant decrease in Upper Income households from 42.1 .to 33.5 percent of total households, and an actual numeric reduction of 3,373 households. Explaining these significant changes in the City's income distribution is the fact that Orange County median household income increased 97 percent during the 1979-1988 period from $22,557 to $44,400. Household incomes in Huntington Beach experienced a somewhat lesser increase from $24,015 to $40,375, or 68 percent, during the same time period. JHousehold Income by Geographic Subarea 1 Figure 4 presents estimated 1988 household income for each of the four geographic subareas evaluated. Downtown/Old Town exhibited the lowest incomes in the City, with a median household income of $31,024, substantially below the City-wide median of $40,375. Incomes in North Central Huntington Beach ($40,222 median) were comparable to those City-wide. Harbor/Bolsa Chica and Southeast Huntington Beach evidenced the highest incomes in the City, with 1988 median household incomes of $44,569 and $45,900 respectively. i 3-4 a TABLE 9 CITY OF HUNTINGTON BEACH INCOME GROUPS: 1979 & 1988 1 9 7 9 1 9 8 8 Number of Proportion Number of Proportion of Income Group Households of Households Households Households Very Low 10,980 18.0% 16,778 24.5% (Less than 50% County median income) I Low Income 9,850 16.2% 12,753 18.7% (50% - 80% County median income) .` Moderate Income 13,835 22.7% 15,939 23.3% (80-120% 4 County median income) Upper Income 26,298 43. 1% 22,925 33.5% (Greater than 120% County median income) TOTAL 60,963 100%, 68,395 100.0% 1979 median County household income: $22,557 '1988 median County household income: $44,400 Source: U.S. Dept. of Commerce, Bureau of Census, 1980 Census Report; Urban Decision Systems, Income: 1980-88-93; Cotton/Beland/Associates, Inc. i CITY OF HUNT INGTON BEACH 4 INCOME GROUPS: 1979 AND 1988 5 Orb [7 1979 ti 30% c (� 20% a a t 1035 Y ' Sc G 1 oss Very Low Low Moderate Upper Income Group 3-5 I eF7 w sp4 cam`°Fti��� �\�/ /.^-= MEDIAN HOUSEHOLD INCOME \ /: �c°���,��'•�✓'�;� �;.•'�'\✓�.J•� •:C�%'�• �� j e4 CITY-WIDE; $40,375 $40,222 P'� ••� NORTH % CENTRAL �'��\ / •�� `\ �P.\ •� DOWN .\ • '\ TOWN/ Meadowlark �� •; �^ �\ OLD- ' ,,;,port /�\ \ \ SOUTHEAST ° �• /. TOWN :\ /:• HARBOR/\ / \ -,•\ $31,024 \ $45,900 •$� BOLSA CHICA, ` ,\ /569 :• Huntington •. f"' VP •\ Harbour i �•• .� ,\ Edison I Company i■ , D o I s a C h i e a ,\ Generating \, r■ ♦ ♦ Sea Cliff Plant �e PACIFK • r J; P r e s e r v,e Country Club \ to ■ -___ \��- ......EE.' �- COAST -- P A C F I C O C E A N 0 3636 K North co■le i-n 1� ■t FIGURE 4 MEDIAN HOUSEHOLD INCOME:1988 Table 10 resents a breakdown of incom es mes into the four income groups for each of the geographic subareas. This data indicates that Downtown/Old !) Town contains the highest proportion of Very Low Income households, an I estimated 35 percent of the total households in this area classified as Very Low Income. Nearly one-quarter of the households in North Central Huntington Beach are Very Low Income, with Southeast Huntington Beach and Harbor/Bolsa Chica each containing approximately 20 percent Very Low Income households. Consistent with its high concentration of Very Low Income households, Downtown/Old Town contains the highest proportion (22%) of Low Income households in the City. North Central , Harbor/Bolsa Chica, and Southeast Huntington Beach contain 19, 18, and 16 percent Low Income households respectively. This income data indicates that, while concentrations of lower income households are located in Downtown/Old Town and to a lesser degree in North Central Huntington Beach, lower income households are located throughout the City. 3.5 Housing Affordability State and Federal standards for housing overpayment are based on an income-to-housing cost ratio of 30 percent and above. Households paying greater than this amount have less income left over for other necessities such as food, clothing, utilities and health care. It is recognized, however, that Upper Income households are generally capable of paying a larger proportion of their income for housing, and therefore estimates of housing overpayment generally focus on lower income groups. The Regional Housing Needs Assessment (RHNA) prepared by SC��)identifies housing overpayment for the City's lower income households based on data from the 1980 census. According to the RHNA, an estimated 10,565 (or 45 percent) of Huntington Beach's lower income households were paying more 4 _ than 30 percent of their income on rent or mortgage payments as of January 1 , 1988. Of these overpayers, 5,961 are classified as Very Low Income and -� 4,604 are Low Income. Housing Overpayment by Tenure The distinction between renter and owner housing overpayment is important because, while homeowners may over-extend themselves financially to afford the option of home purchase, the owner always maintains the option of selling the home. Renters, on the other hand, are limited to the rental market, and are generally required to pay the rent established in that market. The Regional Housing Needs Assessment has broken down housing overpayment by housing tenure, as presented in Table 11. Of the total. 10,565 lower income households identified as overpayers, 8,638 were renter households and only 1,927 were owner households. This discrepancy is largely reflective of the tendency of renter households to have lower incomes than owner households. i (a) Lower income households are defined as households whose total gross ` income is less than 80 percent of the County median. "Lower Income" encompasses both Very Low and Low Income groups. 3-7 I TABLE 10 CITY OF HUNTINGTON BEACH 1988 INCOME DISTRIBUTION BY SUBAREA Downtown/ Harbor/ North Income Group Old Town Southeast Bolsa Chica Central Very Low Income 35% 19% 21% 24% (Less than $22,200) Low Income 22% 16% 18% 19% ($22,200 - $35,519) Moderate Income 20% 25% 21% 26% ($35,520 - $53,279) Upper Income 23% 40% 40% 31% ($53,280 and above) TOTAL 100% 100% 100% 100% Source: Urban Decision Systems, Income: 1980-88-93; Cotton/Beland/Associates, Inc. i CITY OF HUNTINGTON BEACH: 1988 INCOME DISTRIBUTION BY SUBAREA 100% 'C ® VERY LOW M LOW _ ® MODERATE 0 ® UPPER ~ 0% Downtownl Southeast Harborl North Central Oldtown BolsaChica Subarea 3-8 TABLE 11 CITY OF HUNTINGTON BEACH ^� LOWER INCOME HOUSEHOLDS PAYING GREATER THAN 30% OF INCOME FOR SHELTER 1 Household Very Low Low Income Total Tenure Income Owner ;l, 137 790 1 ,927 Renter 4,824 3,814 8,638 Total 5,961 4,604 10,565 Source: SCAG Regional Housing Needs Assessment, June 1988. 3.6 Special Needs Groups Certain segments of the population may have a more difficult time finding decent, affordable housing due to special circumstances. In Huntington Beach, these "special needs" households include the elderly, handicapped persons, large families, female-headed households, farmworkers, and the homeless. The number of special needs households and/or persons in Huntington Beach is summarized in Table 12. TABLE 12 CITY OF HUNTINGTON BEACH SUMMARY OF SPECIAL NEEDS GROUPS: 1988 JNumber of % of Total Needs Group Households Persons Households/Population JElderly (65+) (a) 14,268 7.6 Handicapped (b) 1,444 2. 1 Large Families (c) 6,878 9.8 Female-headed Households (d) 6,316 9.0 Farmworkers (e) 878 (1984) .6 Sources: (a) Urban Decisions Systems, Demographic Trends: 1980-88-93. Proportions of elderly applied to Calif. Dept. of Finance 1988 population estimate. (b) City of Huntington Beach, Housing Assistance Plan, 1988-1991 . (c) Urban Decisions Systems, Demographic Trends: 1980-88-93. Proportions of large families applied to Calif. Dept. of J Finance 1988 reported households. (d) Proportion of female-headed households in 1984 as reported by Huntington Beach Housing Element, applied to Calif. Dept. of Finance 1988 reported households. (e) City of Huntington Beach Housing Element, July 1984. 3-9 l Elderly- The special needs of many elderly households result from their lower, fixed incomes, physical disabilities, and dependence needs. An estimated 14,266 elderly (65 years and over) resided in Huntington Beach i in 1988, representing 7.6 percent of the total population. The proportion of elderly can be expected to increase as those persons between the age of 35 and 64 grow older. Many elderly households in the City are of lower income, and of these the City's 1988 Housing Assistance Plan (HAP) estimates 1,226 are in need of rental assistance. Escalating housing costs, particularly in the rental market, severely impact housing affordability for the elderly,, who are usually on fixed incomes. Housing needs of the elderly can be addressed through the provision of smaller units, second units on lots with existing homes, shared living arrangements, congregate housing, and housing assistance programs. Handicapped: Physical handicaps can hinder access to housing units of traditional design as well as limit the ability to earn adequate income. Huntington Beach's Housing Assistance Plan identifies 1,444 low and moderate income households that have at least one handicapped person, representing approximately .8 percent of total households within the City in 1988. The City's handicapped can be classified according to the following household groups: City of Huntington Beach Handicapped Households Elderly 86 Single, 425 non-elderly Small Family 749 Large Family 184 Total Households 1,444 Source: City of Huntington Beach, Housing Assistance Plan, 1988-1991 Housing opportunities for the handicapped can be maximized through the provision of affordable, barrier free housing. Large Families: Large families are identified as a group with special housing needs based on the limited availability of adequately sized, affordable housing units. Large families are often of lower income, frequently resulting in the overcrowding of smaller dwelling units and in turn accelerating unit deterioration. The demand for larger units in the City can be expected to increase based ,on the City's growing ethnic population and the desire/need of many of these ethnic groups to cohabitate with extended families. Approximately 9.8 percent of the City's households in 1988 had five or more members, translating to 6,878 households. This represents a decrease from 1980 when large households comprised 12 percent of the City's total households. The City's Housing 3-10 I IAssistance Plan identifies 767 lower income large families in need of rental assistance, representing eight percent of total households needing rental subsidy. The housing needs of large households can be addressed through the provision of affordably priced larger housing units. -� Female-Headed Households: Female-headed households tend to have low incomes, thus limiting housing availability for this group. In 1984, 9 percent of Huntington Beach's households were headed by a woman, as reported in the City's Housing Element. Applying this percentage to the City's 1988 housing stock translates to an estimated 6,316 female-headed households. The City's Housing Assistance Plan estimates that 4,268 female-headed households (67%) in Huntington Beach have dependent children under 18 years of age. Thus, providing housing opportunities for this group relates both to affordability and services related to the care of children. 1 Farmworkers: The special housing needs of many farmworkers stem from J their low wages and the insecure nature of their employment. Those persons working in the farming industry have been counted by the 1980 U.S. Census and are also included in the City's 1984 Housing Element. According to the Census, approximately one percent of the total labor force in Huntington Beach was employed in farming, forestry, or fishing. According to the City's Housing Element, there were 878 persons employed as farmers residing in the City in 1984, or .6 percent of those persons aged 18 and over. Homeless: Throughout the country, homelessness has become an increasing problem. Factors contributing to the rise in homeless include the general lack of housing affordable to low and moderate income persons, increases m in the number of persons whose incomes fall below the poverty level , reductions in public subsidy to the poor, and the de-institutionalization of the mentally ill . Based on estimates by the Orange County Homeless Issues Task Force, the County's homeless population consists of approximately 8,000 to 10,000 individuals, some of whom are located in Huntington Beach. As a beach community, the City attracts numerous individuals who congregate along the beach, under the pier, by the Santa Ana River bed, and in Central Park. The Episcopal Service Alliance (ESA) , an ecumenical organization in Huntington Beach which provides social services for homeless, reported for February 1989 the number and types of homeless which sought their assistance. As the figures below reveal , the majority of homeless seeking assistance are couples with children (195) and lone females with children (152) . These totals, however, represent only a portion of the actual number of homeless in the City. ESA indicates that as referrals of the service continue to spread, the total number of homeless reported continues to increase every month. _.i J 1 3-11 I 1 City of Huntington Beach Homeless Seeking Assistance Total Type Individuals Homeless with no shelter 17 Homeless in Motels 21 Homeless and Mentally Ill 3 Homeless Families 24 Couples 12 Couples with children 195 Lone Females 16 P� Lone Females with children 152 Lone Males 37 Lone Males with children 4 1 Total 481 1 Source: Episcopal Service Alliance, February 1989 Project Self-Sufficiency I-n attempts to curtail additional persons and families from becoming homeless, the City's Economic Development Department runs "Project Self-Sufficiency" (PSS) . The program, which first began in 1984 as a 1 nationwide HUD demonstration project, is funded primarily through CDBG Grants and private sector donations. As its name suggests, the program aims to make persons independent of government subsidies and become self-sufficient. To meet this goal , PSS provides housing assistance in the form of Section 8 housing vouchers to low-income, single parents who are either currently homeless or at risk of becoming homeless. The program also matches the single parent with the appropriate agencies in the community to receive needed assistance such as food, clothing, childcare and job training. In order to qualify for the voucher program, persons must reside or work in Huntington Beach or come from a homeless shelter. Seventy percent of all persons who have participated in the program have been Huntington Beach residents, with the remaining 30 percent referred from sponsored shelters. When PSS is unable to provide services to those in need, the program refers these persons to other social services in the surrounding area. J .J 3-12 F. Area Social Service Providers As most homeless individuals migrate to available services, social service agencies located outside the City also serve Huntington Beach homeless. Table 13 presents a listing of agencies which provide social services in the immediate area of the City. The City provides funding ($43,000 in 1988) to several of these agencies for homeless services. As evidenced by this inventory, only the Episcopal Service Alliance, Saints Simon and , Jude Catholic Church are located in the City's jurisdiction. A new shelter targeted at assisting the City's numerous adolescent homeless is set to open later this year. The Huntington Youth Shelter will be located in a rehabilitated structure in Central Park, and will provide overnight accommodations and counseling to homeless and runaway youths. Maximum stay will be limited to two weeks, with the goal of reuniting the youths with family members. Based on the relatively few existing emergency shelters in the Huntington Beach area and the number of homeless persons who reportedly cannot be i accommodated by the existing social service providers, there appears to be i an unmet need for an additional emergency shelter in Huntington Beach. While the Huntington Beach Youth Shelter will provide assistance to the City's adolescent homeless, there will remain a significant unmet need for homeless singles and families. Beyond an emergency shelter, the homeless service agencies stated that the most immediate and important need is for 1 increased operational funds. The City can help address these identified needs by continuing to provide supplementary funding to existing social service providers, and by encouraging the development of a shelter. In addition, by providing decent and affordable housing opportunities, the { City can help to curtail additional persons and families from becoming I homeless. I 3-13 J TABLE 13 SOCIAL SERVICE AGENGIES WHICH PROVIDE SERVICES FOR THE HOMELESS IN THE HUNTINGTON BEACH AREA Name Location Oescri tion Project Self-Sufficiency, Provides housing vouchers (58) . Huntington Beach Assists with finding childcare, food, and clothing. Accommodates residents or workers of Huntington Beach or persons coming from ` shelters. }� Episcopal Service Alliance, Provides lodging, food, clothing, Huntington Beach bus coupons, medical attention, help with payment of utilities, and counseling. Accommodations available for men, women, families on first come basis. Sts. Simon and Jude Catholic Church, Provides food. Accommodates Huntington Beach families on emergency per night basis, and only when church funds are available. Interval House, Provides 30-45 day shelter service Seal Beach and individual and group counseling i to battered women and children. I Salvation Army, Daytime Service provides food and Santa Ana housing referrals for families. Nighttime Service provides shelter for men, women, and families for 3 nights, offered on an emergency ffirst come basis. Shelter For Homeless, Provides room and board for 15-day Westminster probation period in which time all boarders must find employment. If employment is verified, the stay may extend up to 120 days. { Accommodations available for men 0 only on a first come basis. J 1 3-14 TABLE 13 SOCIAL SERVICE AGENGIES WHICH PROVIDE SERVICES CI FOR THE HOMELESS IN THE HUNTINGTON BEACH AREA (Continued) Name Location Description Orange Coast Interfaith Shelter, Accommodations available primarily (. Costa Mesa for couples, families, and single women with children. Maximum 25-30 individuals. Shelter provided on t an emergency per night basis. Service includes food, shower, and laundry. Agency also offers two month program serving 12 families. Families required to save 80 percent of income during the time period. Counseling services offered in parenting, budgeting, and job referrals. Amparo Youth Shelter, Accommodates children between the Garden Grove ages of 11-17. Two-week in-residence counseling program dealing with problems associated with family, school , drugs, and alcohol . Follow-up 4-6 week after-care program. Shelter provided for children facing extreme homeless- ness. Source: Cotton/Beland/Associates, Inc. l J „� 3-15 4.0 HOUSING UNIT CHARACTERISTICS 4.1 Housing Growth is While residential development in many urbanized areas is beginning to slow due to the diminshing supply of available land, Huntington Beach' s housing stock has continued to experience substantial growth during the 1980s. In 1980, Huntington Beach had a housing stock of 63,686 units. By January 1988 that total had risen to 70,179, an increase of more than 10%. Comparing the residential growth rates of Huntington Beach with nearby jurisdictions (see Table 14) , the City's 10.2% increase in housing units during the eight year period exceeded the housing growth experienced in rl these adjacent areas. However, the entire area's growth as a whole fell far short of the County's 15% increase between 1980 and 1988. 71 TABLE 14 HOUSING TRENDS: HUNTINGTON BEACH AND SURROUNDING AREA 1980-1988 No. of Housing Units Jurisdiction 1980 a 1988 b Increase Anaheim 82,725 89,873 8.6% Costa Mesa 34,023 37,282 9.6% - I Fountain Valley 16,758 17,548 4.7% Huntington Beach 63,686 70,179 10.2% Newport Beach 31,397 34,336 9.4% Santa Ana 67,180 72,629 8. 1% Westminster 24,563 25,836 5.2% Orange County 721,514 829,406 15.0% I Source: (a) U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report; (b) California Dept. of Finance, Controlled Population Estimates for 1-1-88 HOUSING TRENDS: HUNTINGTON BEACH AND SURROUNDING AREA 1980-1988 10%- 8 u u s ss J a 436 25% if�i A 0 Anaheim Costa Fountain HntngtnNewport Santa Wstmstr. Orange Co. Mesa Yalley Beach Beach Ana 4-1 in 4.2 HousingType yp and Tenure During the sixties, vacant land was plentiful in Huntington Beach, and housing construction was characterized almost exclusively by large tracts of single family homes. During the early seventies, planned condominium developments and small multi-family rental units became popular in response to changing housing demands, land constraints, and market conditions. Housing growth in the eighties is characterized by . � multi-family apartments and condominiums, lower density duplex and triplex units, and some single family dwellings. While Huntington Beach has experienced significant growth in its housing stock during the 1980s, the composition of the housing stock (single versus multi-family) has undergone little change. Single-family dwelling units continue to comprise the predominant housing type in the City, •� constituting three-fifths of all housing (refer to Table 15) . Multi - family units, however, exhibited a greater rate of growth during the 1980-1988 period, increasing by 13 percent, as compared with 9 percent for ` single-family units. After tapering off in the mid-eighties, condominium activity has begun to increase again in Huntington Beach. Condominium units comprise over half of the City's multi-family housing stock, with two-thirds of these units located in the Southeast and Downtown/Old Town l neighborhoods. Due to the limited amount of available land in the City 1 for additional single-family development and the presence of multi-family zoning in many single-family neighborhoods, future residential development in Huntington Beach can be expected to consist largely of multi-family units. TABLE 15 l CITY OF HUNTINGTON BEACH HOUSING TRENDS: 1980-1988 lNo. of Housing Units Change 1980-1988 Housinq Type 1980 a 1988 b # % F� Single-Family 38,644 42,326 3,682 9.5% Multi-Family 22,245 25,170 2,925 13. 1% . � Condominium -- (13,151) (c) Mobile Homes 2,667 2,683 16 0.6% Total Housing Units 63,686 70, 179 6,493 10.2% �f Total Occupied Units 61, 126 68,395 7,269 11 .9% Vacancy Rate 3.90% 2.54% _1 Source: (a) U.S. Dept. of Commerce, Bureau of the Census, 1 1980 Census Report; (b) California Dept. of Finance, Controlled Population Estimates for 1-1-88; t (c) Huntington Beach Dept. of Community Development. r 4-2 + c The tenure distribution of a community's housing stock (owner versus renter) influences several aspects of the local housing market. 1 Residential mobility is influenced by tenure, ownership housing evidencing a much lower turnover rate than rental housing. Housing overpayment, while faced by many households regardless of tenure, is far more prevalent among renters. Tenure preferences are primarily related to household income, composition, and age of the householder. For the past several decades, Huntington Beach has been a predominantly i owner-occupied community. However, the ratio of owner-occupied to renter-occupied units has been steadily declining since 1970, at which time 70 percent of the City's households were owner-occupied. In 1980, owner-occupied housing comprised 58 percent of the City's households, j dropping further to 53 percent in 1988. Several factors have contributed to this trend. As illustrated in Table 15, the City has experienced a larger proportional increase in the construction of multi -family versus single-family units over the past .decade. While a significant proportion of the multi -family housing stock is condominium units, a large number of these are rented out. Other factors which explain the continued reduction of owner-occupied units in the City include rapidly escalating home values, higher interest rates and speculation, and the increased mobility of households. Among the City's four subareas, housing tenure varies significantly (refer to Figure 5) . The greatest concentration of renter households is in the Downtown/Old Town subarea, with 68 percent of the units in this area occupied by renters. Its neighbor to the east, the Southeast subarea, has the largest owner-occupied population, totalling 15,245 (71%) owner households. Contributing to the Southeast's predominantly owner-occupied status is its large number of condominium units. The Harbor/Bolsa Chica + neighborhood most closely mirrors the City's 1988 owner/renter ratio, with a mix of 57 percent to 43 percent. Housing tenure in North Central Huntington Beach is evenly split between owners and renters. 4.3 Age and Condition of Housing Stock Table 16 illustrates the period in which housing units were built in Huntington Beach. Reflective of the growth in Orange County, more than 80 percent of Huntington Beach's housing units have been constructed f between 1960 and 1978. Housing development has maintained a steady pace into the 1980s, with an additional 9,011 dwelling units or 12.8% of the total housing stock being developed between 1979 and 1988. The majority of these units are in good structural condition, a result of the large number of planned subdivisions in addition to the relatively young age of these tracts . .�l 4-3 CITY TOTALS: 68,395 HOUSEHOLDS /� of (O�� �:' ••�\ \✓ •:� ■=■+•� 36,502 OWNERS (53.4%) 31,893 RENTERS (46.6%) Of, % '•\ �'• 10,239 OWNERS (49.4%) •\:\ �s%/ •'� •\ i I: r�FiG� 10,464 RENTERS (50.6%) e°c •••,• �f + NORTH / ••�� 15,245 OWNERS (70.9%) CENTRAL •.\ •, 6,238 RENTERS (29.1%) ftiL� •i DOWN '\ TOWN/ r j. Meadowlark \'\ ,\ ' OLD- ,\ SOUTHEAST •�• \ Airport /�\ \ TOWN �% • ,\ � ,\ ` r0 OJT i /V' 4,897 OWNERS (31.7%) �\ e HARBOR/\ / 6,121 OWNERS (56.8%),�.%\ �\ BOLSA CHICA, : +:J 10,533 RENTERS (68.3%)� :� :+ 4,658 RENTERS (43.2%) .�< \ /♦♦ Huntington Harbour Edison Company� •\♦ B O 1 5 a C It i C a �\ Generating • i ♦ Sea Cliff Plant PACIFIC r■ • Country Club t J. Preserve \ ----- - -- — rr■r..rrr....r..r.r.r........ • HIGIiWA ` -�- � P A C F I C O C E A N 0 3636, (d5 North scale beat FIGURE 5 HOUSING TENURE:1988 TABLE 16 CITY OF HUNTINGTON BEACH AGE OF HOUSING STOCK: 1988 E # of % of Year Built Units Total 1939 or earlier 1 ,096 1.6% 1940 - 1949 879 1.3% 1950 - 1959 3, 109 4.4% 1960 - 1969 28,662 40.80% 1970 -1974 16,725 23.8% 1975 - 1978 10,697 15.2% 1979 - March 1980 2,478 3.5% = A ril 1980 - Jan 1988 6,533 9.3% Totals: 70, 179(a) 100.0%(b) Source: (a) U.S. Dept. of Commerce, Bureau of the Census, 1980 Census Report; (b) California Dept. of Finance, Controlled Population Estimates for 1-1-88 The accepted standard for major rehabilitation needs is after 30 years. In 1988, only 7 percent of Huntington Beach's housing stock was over 30 years old. However in ten years, nearly half (48. 1%) of the City's housing stock will be over 30 years old. This would indicate the potential need for rehabilitation and continued maintenance of approximately 35,000 dwelling units by the year 2000. Housing Assistance Plan The City's Housing Assistance Plan (HAP) prepared in 1988 �g7ntified the number of housing units in Huntington Beach in substandard condition, as presented in Table 17. The overall quality of the City's housing stock is relatively high, with only a small percentage of units needing replacement or rehabilitation. Of the City's 1988 housing stock, only (a) The City uses the definition of substandard as established in the Uniform Building Code and is generally interpreted to mean a dysfunction or failure of any one major building system (e.g. roof, plumbing, electrical , or heating) . The City also uses HUD Housing Quality Standards to determine substandard conditions when the UBC is not specific in certain areas. :J 4-5 2.3% (1 ,633 dwelling units) were classified as substandard. Of the identified properties, approximately 48 percent are owner-occupied (785 I units) , and 52 percent are renter-occupied (848 units) . The HAP identifies 64 percent (1,047 units) of the City's substandard units as suitable for rehabilitation where necessary repairs are considered economically feasible; 546 of these units suitable for rehabilitation are owner-occupied, and 501 are renter-occupied. TABLE 17 CITY OF HUNTINGTON BEACH HOUSING STOCK CONDITIONS: 1988-1991 of Substandard Units Substandard Total Suitable for Rehabilitation '4. Units Units(a) Total Low Income Owner 785 1 .9% 546 142 Renter 848 3.0% 501 213 TOTALS: 1,633 2.3% 1,047 355 (a) Based on 70,179 total housing units as of January 1,1988, and the owner renter mix provided in the HAP. 14 Source: City of Huntington Beach Housing Assistance Plan, 1988-1991 Community and Neighborhood Enhancement Areas The City has targeted seven neighborhoods characterized by high levels of housing deterioration for rehabilitation assistance. These neighborhoods consist of the Washington, Oakview, Liberty, Commodore, South Shores, Oldtown and Townlot communities, as identified in Figure 6. Through its Community and Neighborhood Enhancement Program, the City offers low interest rehabilitation loans as an incentive for unit upgrading, and in addition provides needed public improvements to the neighborhoods. The following discussion provides an overview of the housing characteristics in each of these areas, and a summary of previous and current housing rehabilitation efforts. .�l _l :.l 4-6 J I eF y CO 1�♦ ry y ♦♦ 1, CO~(F ,1•♦♦ 11♦♦♦ 11 111 11 ,11 ♦ 11 ♦♦1 ♦♦ 11 11 ♦♦♦11 4. B4 Fi Oakview Redevelopment Area '• Washington Enhancement Project r • Liberty Enhancement South Shore Enhancement Project Area Q E S F Meadlowlark Commodore Enhancement ProjectAir , ,1 ,rr1�•r■■.....■......... ■■.■♦ Ii♦1♦ �r���t�� : Huntington ' Oldtown Enhancement Project • • Harbour ..• ;♦ B o l s a C h i c a Generating v,c.tc • sca clClal � ■ 1♦ 1 Country ub � Preserve MM ..... . Townlot Enhancement Project ... ... ........ t .................... ' consr P A C F I C O C E A N 0 3636 K North scale In loot FIGURE 6 COMMUNITY AND NEIGHBORHOOD ENHANCEMENT AREAS 1. Washington Enhancement Project Housing Mix: Unit Type Number of Units Single-Family 16 Duplex 4 Tri-Plex - I Four-Plex 4 5-9 Units 10 10+ Units Total 34 Age of Units: 40-50 years old History and. Current Status of Area: The Washington Enhancement Project Area was created during the early 1980s. Rehabilitation efforts were sparked by a series of modest public improvements to streets and sidewalks which motivated local property j owners to renovate their homes and yards without further City involvement. While the City has offered low interest loans to aid homeowners in the rehabilitation of their property, only two loan applications have been received, and they were subsequently withdrawn. All residential improvements in this area have been initiated through private funds. Public improvements to the Wahington Enhancement Area were successfully completed in 1984. Low interest rehabilitation loans will continue to be offered to homeowners. 2. Liberty Enhancement Project Area 1 Housing Mix: Unit Type Number of Units LSingle-Family 42 Duplex 38 Tri -Plex 17 Four-Plex 44 5-9 Units 19 10+ Units - JTotal 160 Age of Units: 30-35 years old 4-8 i History and Current Status of Area: The Liberty Enhancement Project Area began in the mid 1980s. During the previous years, the area received public improvements to the existing streets and sidewalks. The City also issued three loans for private rehabilitation efforts. Currently, there is moderate renovation activity in the area. Three more loans have been granted by the City to privately rehabilitate a total of 10 units. Also, Liberty area residents recently abandoned and filled in the Carey Water Tract Well because of water contamination. All area residents are now hooked up to the City water system. This transition from well water to City water was financed through CDBG funds and coordinated through the Economic Development Department. - I Overall , rehabilitation efforts in the area have been successful based on Ia mix of public and private funding. The City expects completion of public improvements to the Liberty Enhancement Area within the next 1-2 years. ` 3. Commodore Enhancement Project Area Housing Mix• Unit Type Number of Units Single-Family - Duplex - Tri-Plex - i Four-Plex 80 5-9 Units - 10+ Units - Total 80 Age of Units: 26 years old I History and Current Status of Area: I Before rehabilitation began in 1986, Commodore Circle was one of the most blighted areas in Huntington Beach. Since then, the City has played a 1 major role in its rehabilitation. Thus far, the City has granted loans for rehabilitation to 19 of the 20 apartment buildings in the area. The City has also provided Commodore Circle with a repaved street and alleyway, new blockwalls, a new street lighting system, and improvements to the area's sidewalks. Overcrowding was another concern in Commodore Circle, with several housing units occupied by two and three families. In an attempt to reduce unit overcrowding, qualified tenants were offered Section 8 housing subsidies to relocate to units in other parts of the City. 4-9 Rehabilitation efforts in Commodore Circle are still in progress. Although rehabilitation activities are not yet complete, the efforts have j dramatically improved the appearance and quality of housing in Commodore y Circle for area residents. Also, a recreation lot development as neighborhood recreation area will be completed by 1990. 4. Townlot Enhancement Project Area I Housing Mix: 4 Unit Type Number of Units "1 Single-Family 979 Duplex 468 Tri -Plex 160 Four-Plex 614 y 5-9 Units 608 `- 10+ Units 379 Total 3,208 Age of Units: ; 1 70 years to current construction � i History of Currrent Status of Area: The units in the Townlot Redevelopment Area were originally constructed in the 1920s and 1930s. As the City grew and public and private interest focused on new development, this area became neglected and began deteriorating. It was not until the early 1970s that a City-initiated rehabilitation effort was made. The City offered low interest loans to property owners to improve their property. While the City has offered low interest loans for property improvements, most of the redevelopment efforts are now privately funded. _ ( Rehabilitation efforts are continuing in the Townlot area. As in the past, the City continues to provide low interest loans for rehabilitation efforts in the area. The City has also made several public improvements throughout the Townlot area such as improvements and repairs to existing ' roads. The City has also made an effort to widen every alleyway to 20 feet. } Recent increases in land. values and new home sales prices has stimulated privately-financed rehabilitation in this area. r� :J 4-10 5. South Shore Enhancement Area Housing Mix: Unit Type Number of Units w� Single-Family 636 Duplex - Tri-Plex - Four-Plex 5-9 Units 10+ Units - Total 636 z Age of Units: 25 years old History and Current Status of Area: The South Shore Enhancement Area, originally a H.U.D. development, has y remained an active rehabilitation area since its establishment as a i rehabilitation target area during the 1980s. Both public and private funding have contributed to the rehabilitation effort. The City has granted more than 50 low interest loans to property owners wishing to rehabilitate their property. Recent increases in property values have stimulated privately-financed property upgrades and home improvement projects. Overall , the South Shore enhancement project has been a success. However, despite City encouragement through rehabilitation subsidy, there is still a small percentage of property owners who have not made a concerted effort ` to rehabilitate their property. 6. Oakview Redevlopment Project Area Housing Mix: Unit Type Number of Units Single-Family 33 Duplex 47 Tri-Plex 18 Four-Plex 390 5-9 Units 158 10+ Units - Total 646 Age of Units: 25-30 years old 4-11 J Historyand Current Status Area: ofAe The Oakview Redevelopment Project Area was formes: in 1982 and has stimulated substantial rehabilitation of the area. Public improvements include new landscaping, retaining walls, sidewalks, street lighting, street alignments and alleyway improvements. Through City efforts, the Koledo Lane Demonstration Project was implemented to rehabilitate 16 4-plex units to meet HUD Section 8 standards. The project featured t conversion of a vacated street into a community park as well as II replacement of existing carports by enclosed garages. Property owners of these new garages were allowed to construct a fifth unit over the new garages. The City has also granted approximately 15 low interest loans �) for improving 58 existing units. Jacquelyn Lane Projects, currently under I construction, will provide new public improvements to expand on the Koledo Lane Demonstration Project. These improvements include modifications to -� landscaping and open space. Most of the rehabilitation efforts in this area to date have been focused on the southern half of the Oakview area, which abuts Slater Avenue. However, according to the five-year project plan for Oakview, the focus of redevelopment will soon shift to northern Oakview. In 1990, many of the same types of public improvements and general renovations which are i occurring in the southern Oakview area are scheduled for the northern Oakview area. 7. Oldtown Enhancement Project Area Housing Mix: Unit Type Number of Units Single-Family 758 Duplex 274 Tri-Plex 284 Four-Plex 225 I 5-9 Units 260 10+ Units 207 Total 2,008 IAge of Units: 70 years to current construction i History and Current Status of Area: } Like the Townlot area, housing units in the Oldtown area were constructed in the 1920s and 1930s and experienced the same neglect which led to the deterioration of the area. Neighborhood Enhancement has brought about substantial housing rehabilitation to the area. 4-12 4.4 Housing Costs Ownershia Housing 1 � In 1980, the median home value in Huntington Beach was $116,900. As illustrated in Table 18, for-sale housing in Huntington Beach was nearly 10 percent higher than the County median. The median home value of the majority of surrounding jurisdictions fell below the County median. In comparison to the adjacent jurisdictions, only the median home value in the Cities of Fountain Valley and Newport Beach exceeded Huntington Beach's for-sale housing value. TABLE 18 HOUSING VALUES: HUNTINGTON BEACH AND SURROUNDING AREAS 1980 Median Owner-Occupied Jurisdiction Housing Value ? Anaheim $92,300 Costa Mesa $106,000 Fountain Valley $122,300 I Huntington Beach $116,900 Newport Beach $200,000+ Santa Ana $80,000 . j Westminster $95,000 Orange County $106,800 j Source: Dept. of Commerce, Bureau of the Census, 1980 Census Report HOUSING YALUES: HUNTINGTON BEACH AND SURROUNDING AREAS 1980 $200,000 vn C � r o c9 c $100 000it it at 'x it it it it. it it 0 8 s i s t i` r is 3 3 $ Anaheim Costa Fountain Hntngtn Newport Senta Wstmstr. Orange Co. Mesa Valley Beach Beach Ana 4-13 J 1 Single-Family Housing In order to obtain up-to-date information on current housing value in Huntington Beach, statistics have been compiled on the sales prices of all single-family homes sold in the City in 1988. Sales activity was high during this period, with nearly 2,900 residences sold. Tabulations of sales information have been produced for both the City as a whole and for its four subareas, and are presented in Tables 19 to 23. Table 19 illustrates a dramatic 90 percent increase between 1980 and 1988 in the median sales price of single-family homes. Median selling prices ranged from $165,000 for a one-bedroom house to $275,000 for a house with 5+ bedrooms. While median sales prices would indicate a relatively narrow price range for single-family homes, a significant number of homes were available at both the lower and upper end of the price ranges. At the low end of the sales range, more than 200 homes sold for less than $150,000. At the other extreme, approximately 150 expensive, luxury homes sold for prices in excess of $500,000, with ten of these homes commanding prices of ,. . more than $1,000,000. Median home size ranged from just over 600 square feet for a one-bedroom dwelling to nearly 2,500 square feet for a dwelling with 5+ bedrooms, indicating a range in unit sizes available to meet the _ needs of Huntington Beach's diverse households. TABLE 19 CITY OF HUNTINGTON BEACH rz SINGLE-FAMILY RESIDENTIAL SALES: 1988 Number of Number Home Prices Bedrooms Sold Median Average Range S 1 24 $165,000 $166,675 $63,000 - $365,000 2 276 $188,500 $219, 171 $71,500 - $875,000 3 1,253 $199,900 $229,158 $63,000 - $1,325,000 4 1 , 143 S255,000 $292,405 $73,500 - $2,400,000 5+ 189 $275,000 $344,780 $159,000 - $1,000,000 1 Totals 2,885 $222,000 $260,315 $63,000 - $2,400,000 Number of Square Footage Bedrooms Median Average Range 1 615 738 441 - 1 ,952 2 1,224 1,396 527 - 3,012 3 1,392 1,561 928 - 5,252 4 1 ,918 2,038 984 - 7,640 5+ 2,490 2,572 1,222 - 5, 105 Totals 1,630 1 ,793 441 - 7,640 Source: California Market Data Cooperatives, Inc. , Single-Family ,. � Residential Sales Data Quarterly Reports for 3/88 - 12/88. Compiled by Cotton/Beland/Associates, Inc. 4-14 L.I � The following sections discuss the characteristics of single-family sales in each of the four subareas in the City. Figure 7 depicts level of single-family sales activity, as well as unit sales prices in each of the four subareas in the City. DOWNTOWN/OLD TOWN: E Homes sold in Downtown/Old Town comprised 19 percent of all sales in Huntington Beach in 1988. Homes ranged in value from a median of $185,000 for a one-bedroom dwelling to $535,250 for a dwelling with 5+ bedrooms, i1 representing the widest price range in the City. The median selling price for a single-family home in this subarea is $260,500, substantially higher than the City-wide median of $222,000. The large median home size of 1 ,885 square feet lends further evidence homes sold in the Downtown/Old Town area are generally larger and more expensive than in most other areas of Huntington Beach. TABLE 20 CITY OF HUNTINGTON BEACH i SINGLE-FAMILY RESIDENTIAL SALES: DOWNTOWN/OLD TOWN Number of Number Home Prices Bedrooms Sold Median Average Range `.� 1 16 $185,000 $202,250 $70,500 - $365,000 2 118 $267,500 $260, 136 $127,600 - $469,500 3 269 $245,000 $270,748 $129,900 - $712,400 ' I 4 111 $275,000 $333,567 $122,000 - $969,500 5+ 36 $535,250 $543,575 $229,000 - $995,500 • I Totals 550 $260,500 $297,418 $70,500 - $995,500 Number of Square Footage IBedrooms Median Average Range 1 726 816 441 - 1 ,952 2 1,561 1,624 628 - 2,727 3 1,794 1,842 960 - 3,543 4 2, 151 2,309 1 ,207 - 4, 196 I 5+ 3,752 2,506 1 ,885 - 5, 105 Totals 1,885 1,969 441 - 5, 105 Source: California Market Data Cooperatives, Inc. , Single-Family i Residential Sales Data Quarterly Reports for 3/88 - 12/88. 1 Compiled by Cotton/Beland/Associates, Inc. 4: 4-15 r� BC. /:•^;� °yam //A•.; # CITY WIDE TOTALS # No. Sold: 2,885 •.• ' 'u' ✓• ••' �� �/ Median Sales: $222,000 r/#• r ' r'•' '•� Jc, sr/ i No. Sold: 925 m '''\, Median Sales:$193,900 / NORTH / '% %\ CENTRAL �\ �� , �'''.� ♦�. •\ %DOWN-, �\ ,\ TOWN/ Meadowlark '\ \ OLD- SOUTHEAST /�. Airport /\ • TOWN \ \•\ �r�° �. HARBOR/\ / \,� No. Sold: 944 /;.• BOLSA CHiCA ;y \ Median Sales: $220,000 � /�• No_ Sold: 4661,,,.. •.; ��° No. Sold: 550 •\ sr / • Huntington Median Sales:$335 000 ' ' ` i• Flar bour , �� Median Sales: $260�500 s-.`� \ Edison Company 8 o I s a C h i c a. �.7 Sea Clif( P�CffIC,\ Ce Plant P g `s r■ Country Club \ S� J; reserve ••. will r ■ -� ................ P A C F I C O C E A N 0 3636 �C North scale In feet FIGURE 7 MEDIAN SINGLE FAMILY RESIDENTIAL SALES PRICES;1988 �t HARBOR/BOLSA CHICA: Although the Harbor/Bolsa Chica neighborhood comprised the smallest portion (16%) of single-family homes sold during the time period, it was the location of the most expensive single-family home sales in Huntington Beach. With a median sales price of $335,000, this area exceeded the median sales price of the City by $113,000. All ten of Huntington Beach' s one million dollar-plus homes sold in 1988 were located in the Harbor/Bolsa Chica subarea. Sales ranged from a median of $250,000 for a A one-bedroom home to $475,000 for a home with 5+ bedrooms. With a median t home size of 2,099 square feet, unit sizes in the Harbor/Bolsa Chica neighborhood were significantly larger than in other parts of the City. TABLE 21 CITY OF HUNTINGTON BEACH SINGLE-FAMILY RESIDENTIAL SALES: HARBOR/BOLSA CHICA f� L Number of Number Home Prices Bedrooms Sold Median Average Range 1 1 $250,000 $250,000 $250,000 - $250,000 2 47 $225,000 $273,874 $97,000 - $875,000 3 152 $241,000 $333,522 $108,500 - $1,325,000 4 249 $375,000 $434,469 $176,000 - $2,400,000 5+ 17 $475,000 $552,441 $225,000 - $1 ,000,000 Totals 466 $335,000 $389,253 $97,000 - $2,400,000 i Number of Square Footage Bedrooms Median Average Range 1 482 482 482 - 482 2 1,547 1,460 527 - 3,012 3 1,808 1,859 1,031 - 5,252 4 2,423 2,455 1,268 - 7,640 l 5+ 3,261 3,264 2,235 - 4,897 ] Totals 2,099 2, 186 482 - 7,640 Source: California Market Data Cooperatives, Inc. , Single-Family Residential Sales Data Quarterly Reports for 3/88 - 12/88. Compiled by Cotton/Beland/Associates, Inc. i . i _J 4-16 NORTH CENTRAL: North Central Huntington Beach was the location for 32 percent of all homes sold in 1988. This area exhibits the lowest median sales price in the City, $193,900, and the smallest range in selling prices, ranging from " a median of $154,900 for a two-bedroom unit to $255,000 for a unit with 5+ bedrooms. This area also contains the smallest sized homes, with a median home size of 1 ,392 square feet, along with the smallest range in median • home sizes. This data indicates a fairly homogeneous, lower-priced housing stock in North Central : Huntington Beach. TABLE 22 CITY OF HUNTINGTON BEACH SINGLE-FAMILY RESIDENTIAL SALES: NORTH CENTRAL Number of Number Home Prices Bedrooms Sold Median Average Range 1 0 $0 $0 $0 - $0 2 26 $154,900 $168, 100 $90,000 - $375,000 3 462 $185,000 $193,858 $63,000 - $435,000 4 392 $200,000 $218,214 $107,500 - $395,000 5+ 45 $225,000 $259,951 $178,000 - $490,000 Totals 925 $193,900 $206,671 $63,000 - $490,000 Number of Square Footage Bedrooms Median Average Range 1 0 0 0 - 0 2 1,100 1,220 782 - 2,229 3 1 ,285 1 ,369 928 - 2,229 J' 4 1,493 1,707 1,134 - 7,274 I 5+ 1 ,910 2, 120 1,222 - 3, 151 Totals 1,392 1,544 782 - 7,274 Source: California Market Data Cooperatives, Inc. , Single-Family Residential Sales Data Quarterly Reports for 3/88 - 12/88. Compiled by Cotton/Beland/Associates, Inc. l .J . I 4-17 �J SOUTHEAST: Units sold in Southeast Huntington Beach comprised 33 percent of all single-family home sales in 1988. Of all four neighborhoods, the Southeast most closely mirrors the City-wide totals. Selling prices ranged from a ` median of $75,000 for a one-bedroom unit to $269,500 for a dwelling with 5+ bedrooms. Median homes sizes ranged from 615 square feet for a one- bedroom unit to 2,275 square feet for a dwelling with 5+ bedrooms. Overall sales prices in the area were slightly lower than those City-wide, as were the size of units sold. This data indicates that Southeast Huntington Beach on average provides smaller, yet more affordable units for homebuyers. wr TABLE 23 CITY OF HUNTINGTON BEACH SINGLE-FAMILY RESIDENTIAL SALES: SOUTHEAST Number of Number Home Prices Bedrooms Sold Median Average Range 1 7 $75,000 $73,457 $63,000 - $78,700 2 85 $153,000 $147,676 $71,500 - $281,500 3 370 $199,500 $200,126 $84,500 - $555,000 4 391 $258,000 $264,063 $73,500 - $870,000 5+ 91 $269,500 $269,291 $159,000 - $400,000 Totals 944 $220,000 $227,614 $63,000 - $870,000 Number of Square Footage . Bedrooms Median Averacc Range 1 615 569 570 - 615 2 1,010 1,097 873 - 2,239 3 1,355 1,473 961 - 3,264 1 4 1,958 2,028 984 - 3,370 5+ 2,275 2,297 1,740 - 3,055 Totals 1,624 1 ,742 570 - 3,370 Source: California Market Data Cooperatives, Inc. , Single-Family Residential Sales Data 'Quarterly Reports for 3/88 - 12/88. Compiled by Cotton/Beland/Associates, Inc. V 4-18 1 I Condominium Units In addition to single-family detached homes, the 13,000 condominium units in Huntington Beach offer an alternative option for home ownership. As illustrated in Table 24, 825 condominiums were sold in the City in 1988. These units represent 22% of the total 3,710 ownership housing units sold in Huntington Beach during this time period. Two and three bedroom units comprised the majority of available condominiums, accounting for nearly 85% of the units sold. Sales prices ranged from a median of $116,500 for a one-bedroom unit, to a median of $272,000 for a unit with 4+ bedrooms. In contrast to single-family home prices, condominium sales prices were on average $32,000 - $50,000 less expensive for one- to three-bedroom units, and $88,000 less expensive for four-bedroom units. The City's housing stock of condominiums thus provides a more affordable home-ownership alternative to single-family homes, permitting a greater number of � households to afford the option of home purchase. The smaller unit sizes of condominiums are well -suited to the City's small 1-3 person households. TABLE 24 CITY OF HUNTINGTON BEACH CONDOMINIUM SALES ACTIVITY: 1988 Number of Home Prices Bedrooms Number Sold Median Average Range 11 100 $116,500 $116,373 $50,000 - $390,000 2 489 $161,900 $174,920 $74,000 - $930,000 3 202 $179,950 $196,251 $80,000 - $975,000 4+ 34 $272,000 $256,776 $95,000 - $840,000 Totals 825 $158,000 $176,402 $50,000 - $975,000 INumber of Square Footage Bedrooms Median Average Range j1 776 798 471 - 2,750 2 1 , 194 1,277 513 - 2,543 3 1 ,414 1 ,510 921 - 2,750 4+ 2,083 2,071 1,245 - 3,260 Totals 1 ,307 1 ,307 471 - 3,260 Source: California Market Data Cooperative, Inc. Condominium Sales Data Quarterly Reports for 3/88-12/88. Compiled by Cotton/Beland/Associates, Inc. �1 _J :J 4-19 The level of condominium activity, as well as unit sales prices, varies among geographic areas in Huntington Beach, as depicted in Figure 8. The following sections discuss the characteristics of condominium sales in ;.� each of the four subareas in the City. DOWNTOWN/OLD TOWN: _j In 1988, the Downtown/Old Town subarea accounted for the greatest number of condominium sales in the City, comprising 39 percent of all units sold. s:.. With a median sales price of $175,000, this area had the most expensive condominium sales in the City. . Sales prices ranged from a median of $116,000 for a one-bedroom dwelling to $284,500 for a 4+ bedroom dwelling. As could be expected, unit sizes were also significantly larger in the Downtown/Old Town subarea than in other parts of the City. TABLE 25 CITY OF HUNTINGTON BEACH CONDOMINIUM SALES: DOWNTOWN/OLD TOWN Number of Home Prices Bedrooms Number Sold Median Average Range - 1 42 $116,000 $113,043 $SO,000 - $175,000 2 203 $170,000 $183,252 $74,000 - $372,500 3 67 $197,900 $206,763 $124,600 - $369,900 4+ 10 $284,500 $269,070 $169,900 - $294,900 Totals 322 $175,000 $181,651 $50,000 - $369,900 Number of Square Footage Bedrooms Median Average Range 1 776 772 536 - 970 2 1,206 1,333 736 - 2,209 3 1,579 1 ,653 1 , 112 - 2,690 4+ 2,535 2,447 2,070 - 2,559 Totals 1 ,235 1 ,361 536 - 2,690 Source: California Market Data Cooperative, Inc. 1 Condominium Sales Data Quarterly Reports for 3/88-12/88. Compiled by Cotton/Beland/Associates, Inc. J 4-20 J .. ^ of COO i•''\. '�" /A• sq4� F"`�Fs 'A'•• •'•\.�•\,/ •�;• �^"'�.•• CITY-WIDE TOTALS ��,, /;\�..� .'\ �.• •.•' .•� No Sold: 825 �'' ••' '•\/�' \✓�'� ••C./♦ r, .�j M odian Sale $158,000 .�•. No. Sold: 95 *% ��� �s>✓ �\ Median Sales: $127,900 •'�. 7 r; LF.� �fL •. j � NORTH \ +� CENTRAL •'•: / '\ No. Sold: 191 j p�WN�, �' Median Sales: $144,000 ♦�, `\ \'\ \ j TOWN/ �� � P % j.. Meadowlark '\ \ OLD- \ SOUTHEAST ♦�./•;. \ Airport /"\ TOWN \, O % , HARBOR/\ / \ �' 00° •�� .«r••♦No. Sold: 217 ,��� •••\ • Huntington .) r '� • Harbour ,Median Sales: $155;00NOe ° \�\ ��`P •�, •• Edison Company i I� ••. B o,I c a C h i e a ♦ �\ GeneratingSea \, J: •.'� Cliff P r e s e e Country Club \ Plana PACK ♦• pica ..�............ •'� '� No. Sold: 322 ■• __� -♦.■■■■■■■■■iq �1•� Median Sales: $175,000, HIGHWAY �- �- _=■■■—=■=�.■-:- COAST N 0 3636 �Fj�n FC North. scale In Too, FIGURE 8 MEDIAN CONDOMINIUM SALES PRICES:1988 HARBOR/BOLSA CHICA: 1 The Harbor/Bolsa Chica subarea was the location for 26% of all condominiums sold. Just as with single-family home sales, this area contained some of the most expensive condominium units in the City, with -� 15 condominiums selling for prices in excess of $450,000. Sales prices ranged from a median of $120,000 for a one-bedroom unit to $363,000 for a dwelling with 4+ bedrooms. Although unit sizes on average were not the largest in the City, the Harbor/Bolsa Chica neighborhood offered condominium buyers the widest choice in unit size, ranging from 471 square feet for a one-bedroom dwelling to 3,260 square feet for a four-bedroom dwelling. TABLE 26 CITY OF HUNTINGTON BEACH CONDOMINIUM SALES: HARBOR/BOLSA CHICA Number of Home Prices Bedrooms Number Sold Median Average Range 1 39 $120,000 $126,744 $73,500 - $284,000 2 117 $169,000 $201,780 $86,000 - $930,000 3 53 $235,900 $262,594 $103,000 - $975,000 4+ 8 $363,500 $335,040 $68,400 - $840,000 Totals 217 $155,000 $210,377 $68,400 - $975,000 Number of Square Footage Bedrooms Median Average Range 1 756 819 471 - 2,750 2 1,257 1 ,305 513 - 2,543 { 3 1 ,543 1,622 1 ,921 - 2,750 4+ 2,971 2, 148 1,895 - 3,260 Totals 1,270 1,326 471 - 3,260 Source: California Market Data Cooperative, Inc. Condominium Sales Data Quarterly Reports for 3/88-12/88. Compiled by Cotton/Beland/Associates, Inc. : 1 .. l 4-21 � J jNORTH CENTRAL: ^� Condominiums sold in North Central Huntington Beach comprised the smallest portion (11 .5%) of units sold in 1988. Of the 95 units sold, 86% were either two- or three-bedroom units. This area exhibits the lowest median sales price in the City, $175,000, as well as the lowest average, $138,074. The North Central neighborhood also contains the smallest sized condominiums with an average unit size of 1 ,113 square feet. TABLE 27 CITY OF HUNTINGTON BEACH CONDOMINIUM SALES: NORTH CENTRAL Number of Home Prices •._I Bedrooms Number Sold Median Average Range 1 12 $94,500 $106,392 $65,000 - $225,000 2 62 $128,000 $135,934 $87,000 - $390,000 3 20 $129,500 $161,120 $102,000 - $390,000 4+ 1 $190,000 $190,000 $190,000 - $190,000 Totals 95 $127,900 $138,074 $65,000 - $390,000 Number of Square Footage Bedrooms Median Average Range 1 794 846 712 - 1, 184 2 1,995 1,071 752 - 2,591 3 1,227 1,391 1,134 - 2,441 4+ 2,342 2,342 2,342 - 2,342 Totals 1,059 1, 113 712 - 2,441 Source: California Market Data Cooperative, Inc. Condominium Sales Data Quarterly Reports for 3/88-12/88. Compiled by Cotton/Beland/Associates, Inc. i 4-22 1. I • . SOUTHEAST: Southeast Huntington Beach was the location for 23.2% of condominiums sold in 1988. Although 90% of the 191 units sold were either two- or three-bedroom units, the Southeast still had the greatest number (15) of condominium dwellings with 4+ bedrooms. Units ranged in price from a median of $94,000 for a one-bedroom dwelling to $154,000 for a two-bedroom dwelling, the smallest price range in the City. Overall median sales prices ($144,000) were slightly lower in this area than those City-wide, i..l as were the size of units sold (1,888 square feet) . This data indicates � . � the the Southeast offers slightly smaller, yet more affordable units, well -suited for the City's smaller households. TABLE 28 ;- CITY OF HUNTINGTON BEACH CONDOMINIUM SALES: SOUTHEAST Number of Home Prices Bedrooms Number Sold Median Average Range ; i 1 7 $94,000 $95,686 $65,000 - $390,000 2 107 $154,900 $152,333 $82,000 - $269,900 3 62 $121,000 $139,269 $80,000 - $265,000 4+ 15 $115,000 $177,780 $95,000 - $330,000 Totals 191 $144,000 $148,015 $65,000 - $390,000 Number of Square Footage Bedrooms Median Average Range 1 786 752 600 - 895 2 1, 150 1,244 790 - 2, 197 3 1,208 1,297 854 - 2,036 4+ 1,282 2,828 2,245 - 2,717 - � Totals 1, 188 1,289 600 - 2,717 -I Source: California Market Data Cooperative, Inc. Condominium Sales Data Quarterly Reports for 3/88-12/88. 1 Compiled by Cotton/Beland/Associates, Inc. J 4-23 r� J Rental Housing j- In 1980, median monthly rental costs in Huntington Beach were $363. As ;.A presented in Table 29, much like for-sale housing costs, Huntington Beach's rents were higher than those in nearby jurisdictions, with the exception of Fountain Valley ($375) and Newport Beach ($443) . In } comparison with Orange County, the City's rents were nearly 10 percent higher. TABLE 29 1 CITY OF HUNTINGTON BEACH MONTHLY RENTS: HUNTINGTON BEACH AND SURROUNDING AREAS 1980 Median Monthly Jurisdiction Contract Rent Anaheim $305 Costa Mesa $339 Fountain Valley $375 Huntington Beach $363 Newport Beach $443 -;} Santa Ana . $307 1 Westminster $328 Orange County $331 Source: Department of Commerce, Bureau of the Census, 1980 Census Report. MONTHLY RENTS: HUNTINGTON BEACH AND SURROUNDING AREAS 1980 ` $Soo c cc U % � i k Q C z 300 E i c a F i3 O && E: U Ea :e j d ,. — 00 2 � : n .s s x 3: 3 . p : g i 9. f: $100 �2 >q 4 Q b K $O Anaheim Costa Fountain Hntngtn Newport Santa Wstmstr. Orange Co. Mesa YaJIey Beach Beach An 4­24 1 - . In order to update information on rental costs in Huntington Beach, data has been compiled from advertised rental units in the Sunday editions of 71 the Orange County Register newspaper between January through December . � 1988. As presented in Table 30, nearly 60 percent of all units advertised were two bedroom units. Median rents for the 296 units sampled vary from 3 $525 for a studio to a high of $950 for a unit with 3+ bedrooms. i TABLE 30 CITY OF HUNTINGTON BEACH MONTHLY RENTAL RATES: 1988 Number of Number of Bedrooms Units Median Average Range Studio 6 $525 $505 $475 - $525 1 67 $630 $675 $525 - $770 2 173 $750 $783 $550 - $1 ,250 3+ 50 $950 $847 $525 - $1 ,400 Totals 296 $750 $764 $475 - $1,400 Source: Orange County Register, Sunday Editions: 1/3/88, 4/3/88, 8/7/88, 12/4/88. Compiled by Cotton/Beland/Associates, Inc. In addition to rental unit size, rental rates also differ by geographic location in the City. Figure 9 illustrates median rents for each of the four subareas. Median rents varied from $700 in North Central Huntington Beach to $850 in the Harbor/Bolsa Chica subarea, with median rents in Downtown/Old Town ($725) and Southeast Huntington Beach ($770) falling in between those two extremes. As depicted in Table 31, the majority of the units advertised during the time perod are located in Downtown/Old Town (39%) and North Central Huntington Beach (31%) . Multi -family rental units in Downtown/Old Town present the greatest variety, ranging from beachfront studios to dwellings with three bedrooms. The North Central , Southeast and Harbor/Bolsa Chica areas are comprised primarily of two- and three-bedroom units. The proximity to amenities such as Huntington Harbour and/or the beach in the Southeast and Harbor/Bolsa Chica enable these areas to command higher market rents. . I 4-25 J .^ BF'y /A CITY-WIDE MEDIAN RENT: $750 SA 4 / rrO ••�\ �� rs�. i� , e°psi I� ••� P,� ••� ,■ F LF AFL • / �G P NORTH / • CENTRAL •\:\ DOWN-` , '\ •\ TOWN/ jM Meadowlark OLD- SOUTHEAST \ Airport /^\ \ TOWN $770\, ° .* QOLSA CHICA, ••I $850/�/• ••.............■..■..■.■.• ��••.) P�t�`° \,\ �,P�~P •\• i Huntington ♦ G Ila,bour (�• �• ♦ `\ Edison Company Is I■ : Q o I s a C h i e a S �\ Generating ■ • , sea dirt Plant pAcwvc • t■ • :,:� Country Club \ t16 J; Preserve �t . ■....... • ■ �_���_ _ ■.■■: COAST P A C F 1 C O C E A N p 3636 �Cf?C1 North ccaie I��' FIGURE 9 MEDIAN RENTAL RATES:1988 , l TABLE 31 -i CITY OF HUNTINGTON BEACH 1 MONTHLY RENTAL RATES BY SUBAREA: 1988 Number of Location Units Median Average Range Downtown/Old Town 116 $725 $739 $475 - $1 ,200 • Harbor/Bolsa Chica 52 $850 $850 $625 _ $1 ,250 North Central 91 $700 $740 $550 $1,400 Southeast 37 $770 $779 $525 - $1, 100 Totals 296 $750 $764 $475 - $1 ,400 Source: Orange County Register, Sunday Editions: 1/3/88, 4/3/88, 8/7/88, 12/4/88. =� Compiled by Cotton/Beland/Associates, Inc. 4.5 Share of Region's Housing Needs State law requires jurisdictions to provide for their share of regional housing needs. The Southern California Association of Governments (SCAG) has determined the 1989-1994 needs for the City of Huntington Beach, and has estimated the number of households which the City will be expected to accommodate during this period. Future housing needs reflect the number of new units needed in a jurisdiction based on households which are expected to reside within the jurisdiction (future demand) , plus an adequate supply of vacant housing to assure mobility and new units to replace losses. These needs were forecast by the 1988 Regional Housing Needs Assessment (RHNA) , which considered on a regional and local level : market demand for housing, employment opportunities, availability of suitable sites for public facilities, commuting patterns, type and tenure of housing need, and housing needs of farm workers. According to the model , housing to accommodate 6,228 households would need to be added to the City's June 30, 1989 total households by July 1994 to fulfill the City's share of regional housing needs. Based on the distribution of regional income, this total can be further divided among HUD's four income groups to identify the types of households to be provided for as follows: TABLE 31A CITY OF HUNTINGTON BEACH 1989-1994 HOUSEHOLD NEEDS BY INCOME GROUP t Very Low (0-50% County median income 984 (15.8%) Low (50-80% County median income) 1 ,264 (20.3%) Moderate (80-120% County median income) 1 ,370 (22.0%) Upper (over 120% County median income) 2,610 (46.9%) Total Households 6,228 Source: SCAG Regional Housing Needs Assessment, June 1988 (Draft) u 4-26 i 1 7 The intent of the future needs allocations by income group is to relieve lower income impaction - the undue concentration of very low and low income households in a jurisdiction. Localities must fully address their existing needs in order for impaction avoidance goals to be achieved in the future period. ~ 4.6 Housing in the Coastal Zone Housing in the coastal zone of Huntington Beach includes some of the newest and most expensive homes in the City as well as areas of very old, deteriorated. and substandard housing. In many areas, small summer homes, —� a legacy of the City's early heyday as a beach resort, adjoin modern apartment units. Similarly, the coastal population ranges from affluent families to young, single apartment dwellers preferring a beach orientation, to senior citizens on fixed incomes in older dwellings or mobile homes. Some neighborhoods are very homogenous; others have several different co-existing uses. Government Code Section 65588(d) requires the City to include in its housing element: 1) a review of the number of housing units approved for construction within the coastal zone after January 1, 1982; 2) the number of housing units for persons and families of low or moderate income 1 provided in new housing developments either within the coastal zone or within three miles of the coastal zone; 3) the number of existing residential dwelling units occupied by persons and families of low or moderate income that have been authorized to be demolished or converted since January 1, 1982 in the coastal zone; and 4) the number of residential dwelling units for persons and families of low or moderate income that have been required for replacement of units. This section will address these requirements. Since January 1, 1982, 73 dwelling units have been authorized to be demolished within the City's coastal zone. No units have been authorized to be converted. Through an active program of affordable housing development, the City has replaced all the units demolished with low/ moderate rental and for sale units developed throughout the City. Table 32 presents a comprehensive list of the affordable housing projects which have been developed either within the City's coastal zone, or within three miles of its boundary, since January 1 , 1982. In addition to the affordable units provided in these projects, 138 units affordable to low and moderate income households have been provided through the City' s density bonus program. Since January 1 , 1982, the following dwelling units have been constructed in the coastal zone: ° 612 single family homes 283 condominium units ° 177 apartment units 4-27 r.. 1 TABLE 32 CITY OF HUNTINGTON BEACH AFFORDABLE HOUSING PROJECTS WITHIN THREE MILES OF COASTAL ZONE ^! Total Number Affordable Project Name of Units Units Location For Purchase: Huntington Bayshore 159 34 Lake and Atlanta Pacific Ranch 558 100 Yorktown and Lake ,. j Seabridge 200 160 Adams and Beach Cabo Del Mar 230 188 Warner and Bolsa Chica Harbor Point 102 31 Warner and Green For Rent: Bond issue for multi -family units. 20% are set-aside at affordable rental rates. Huntington Beach Breakers 342 85 Atlanta and Beach ' Rivermeadows 152 30 Magnolia and Warner l Huntington Village 114 27 Springdale and Edinger (senior units) Seabridge Villas 334 69 Beach and Adams Section 236 loans program for subsidizing sponsors of housing for moderate income, elderly and disabled citizens. Huntington Villa 198 198 16000 Villa Yorba Other Below-Market Rental Projects U Emerald Cove (senior 164 164 Talbert and Beach Source: City of Huntington Beach Department of Economic Development 4-28 e.� 5.0 Employment Characteristics The need for housing within a given market area is largely dependent on the local economy and the number and types of jobs available. During the 1960s, Huntington Beach experienced a dramatic increase in new home construction, with many of these new homes appealing to households II employed in the Los Angeles area. During this period, the Orange County economy began to grow and diversify from a concentration of predominantly industrial employers to include more ancillary and service jobs. Several factors have contributed to limiting the housing opportunities for households with lower incomes. Low density zoning and inflating land values have perpetuated the production of larger luxury homes in Huntington Beach and other neighboring communities. The failure of individual communities to provide a range of housing opportunities to ^� match the regional economy causes longer commutes to work and the concentration of lower income groups in older areas of the County. Employment Projections An assessment of the prospective need for market rate housing must take into consideration the number and type of new jobs created in both the City and County. As presented in Table 33, Huntington Beach's employment base grew by 4,070 jobs between July 1980 and January 1984. During this period, only the Agriculture, Government, and Uncoded sectors of employment showed a decrease in the number of jobs. As this table reveals, the thrust of Huntington Beach's economic activity is in the manufacturing and retail industries. Although these two sectors comprise more than half of the City's employment opportunities, Huntington Beach still maintains a very diversified employment base. During the four year period, the wholesale (42%) , finance/insurance/real estate (23%) , and mining (22%) industries all experienced substantial increases in the number of jobs created within the City. With the continued diversification of the local economy attracting a greater variety of ` non-skilled, semi-skilled, and professional workers, the City should I endeavor to provide a range of housing opportunities and choice. 1 _J L 5-1 rJ TABLE 33 CITY OF HUNTINGTON BEACH EMPLOYMENT TRENDS: 1980 & 1984 July January % Change Industry 1980 1984 1980-1984 Agriculture 425 349 -17.9% Mining 287 350 22 .0% Construction 1 , 794 1 ,997 11 .3% Manufacturing 11 ,860 13, 177 11 . 1% Trans/Pub. Utilities 1 ,992 2,058 3.3% Retail Trade 10,088 11 ,444 13.4% Wholesale Trade 1 ,354 1 ,923 42.0% Fin/Ins/Real Estate 1 ,992 2,454 23.2% Services 6,585 7,634 15.9% Government 7,346 6,422 -12.6% Uncoded 24 9 -62.5% TOTAL: 43,747 47,817 9.3% % Total County Employment 5.2% 5.2% -- Source: State Employment Development Department Jobs/Housing Balance Another measure of the balance of a community's employment opportunities with the needs of its residents is through a "jobs-housing balance" test. A balanced community would have a match between employment and housing opportunities enabling most residents to also work in the community. SCAG has identified as a goal for the Nor hwest Orange County subregion an employment to housing ratio of 1 .44. a) Comparing the number of jobs in Huntington Beach in 1984 (47,817) to the number of housing units (66,335) indicates a job-housing ratio of .72 for the City. This low ratio would indicate Huntington Beach is housing-rich, and should increase its employment base to attain a more balanced community. However, since the City is located in a job-rich subregion (Northwest Orange County had a job-housing ratio of 1 .34 in 1984) which is projected to experience an even greater rate of employment growth through 2010, Huntington Beach's housing-rich characteristic helps achieve the desired jobs/housing balance for the entire Northwest Orange County subregion. (a) Draft Growth Management Plan, Southern California Association of Governments, October 1988, Page VII-11. 5-2 6.0 HOUSING CONSTRAINTS Actual or potential constraints on the provision and cost of housing affect the development of new housing and the maintenance of existing units for all income levels. Market, governmental , infrastructUral , and environmental constraints to housing development in Huntington Beach are discussed below. 6. 1 Market Constraints The high cost of renting or buying adequate housing is the primary ongoing constraint to providing adequate housing in the City of Huntington Beach. High construction costs, labor costs, land costs and market financing constraints are all contributing to increases in the availability of affordable housing. Construction Costs : The single largest cost associated with building a new house is the cost of building materials, comprising between 40 4..o 50 percent of the sales price of a home. Overall construction costs rose over 30% percent between 1980 and 1988, with the rising costs of energy a significant contributor. Construction costs for wood frame, single- family construction of average to good quality range from $40 to $55 per square foot, custom homes and units with extra amenities running somewhat higher. Costs for wood frame, multi -family construction average around $42 per square foot, exclusive of parking. A reduction in amenities and quality of building materials (above a minimum acceptability for health, safety, and adequate performance) could result in lower sales prices. Additionally, pre-fabricated, factory built housing may provide for lower priced housing by reducing construction and labor costs. An additional factor related to construction costs is the number of units built at the same time. As the number of units developed increases, construction costs over the entire development are generally reduced based on economies of scale. This reduction in costs is of particular benefit when density bonuses are utilized for the provision of affordable housing. Land: Land costs include the cost of raw land, site improvements, and all costs associated with obtaining government approvals. The limited supply of developable vacant land in Huntington Beach has accounted for a steady increase in raw land costs. Residential land in Huntington Beach cost an average of $6 to $8 per square foot in 1984, whereas land costs in 1989 averaged between $10 and $13 per square foot on parcels with single-family zoning and $20 and $25 per square foot on parcels zoned for multi -family development. It is estimated that these costs contribute 20 to 25 percent to the final sales price of a new home. Left alone, the rapidly escalating market price of land will tend to encourage mainly higher priced development. Higher density zoning could reduce the cost per unit of land, but land zoned for higher densities commands a higher market price. For this reason, density bonuses rather than zoning changes may be the preferred vehicle for reducing land costs. 6-1 Labor Costs: Labor is the third most expensive component in building a house, constituting a;, estimated 17% of the cost of building a single-family dwelling. The cost of union labor in the construction trades has increased steadily since April 1974. The cost of non-union labor, however, has not experienced such significant increases. Because of increased construction activity, the demand for skilled labor has increased so drastically that an increasing number of non-union employees are being hired in addition to unionized employees, thereby lessening labor costs. Financing: While interest rates have fallen more than 10 percent from their near 20 percent high in the early 1980s, they still have a substantial impact on housing costs which is felt by renters, purchasers and developers. It should be noted that some mortgage financing is variable rate, which offers an initial lower interest rate than fixed financing. The ability of lending institutions to raise rates to adjust for inflation will cause many existing households to overextend themselves financially, as well as returning to a situation where high financing costs substantially constrain the housing market. An additional obstacle for the first-time home buyer continues to be the 10-20% downpayment required by lending institutions. The median sales price of a single-family home in Huntington Beach (1988) was $222,000. A $199,800 mortgage amortized over 30 years at an interest rate of 10.5% would result in monthly house payments of $1 ,827. This level of payment eliminates Huntington Beach's very low, low and moderate income households from the for-sale housing market. Condominiums do, however, offer an alternative homeownership opportunity for many of the City's moderate income households. Interest rates are determined by national policies and economic conditions, and there is little that local governments can do to affect these rates . Jurisdictions can, however, offer interest rate write-downs to extend home purchase opportunities to lower income households. In addition, government insured loan programs may be available to reduce mortgage downpayment requirements. Profit, Marketing and Overhead: Developer profits generally comprise 10-15% of the selling price of single-family homes and Blighty lower for condominiums. However, in communities like Huntington Beach where the market demand for housing is high in comparison to the available housing supply, and home purchasers often desire more amenities, developers are able to command higher prices and often realize greater margins of profit. Rising marketing and overhead costs have contributed to the rising costs of housing. Inflation has spurred much of the inc-ease in marketing and overhead. Intense competition among developers has necessitated more advertising, more glamorous model homes and more expensive marketing strategies to attract buyers. 6-2 6.2 Governmental Constraints Housing affordability is affected by factors in both the private and public sectors. Actions by the City can have an impact on the price and availability of housing in the City. Land use controls, site improvement requirements, building codes, fees and other local programs intended to improve the overall quality of housing may serve as a constraint to housing development. Availability of Land The Land Use Element of the General Plan and corresponding zoning provide for a full range of residential types and densities dispersed throughout the City. Densities range from 0-4 units per acre in areas designated for Estate Residential to 35 units per acre in areas designated for High Density Residential . Table 34 presents the amount of acreage allotted to each residential land use category in the City's General Plan. As indicated by this table, over half the City's land area is planned for low density residential use, evidenced by the predominance of detached single-family homes in Huntington Beach. Considerably less acreage is planned for medium and high density uses, which characteristically provide condominium and apartment units. Three acres of land have been designated to accommodate a specific senior residential project. The areas of the City designated for Mixed Development and Planned Community allow for a mixture of residential uses, densities, and housing types. As an older City, much of the land designated for residential development is already built out. In addition, a great deal of the City's vacant land is subject to development constraints related to oil production, flood plain regulations and fragmented ownerships, thereby limiting their development in the near future. Of the City's total 725 vacant residential acres (refer to Section 7. 1, Table 38) , only 479 acres can be considered unconstrained and suitable for development within the next five years. Additional residential development in the City will , however, be accommodated through several other means, including development on underutilized residential parcels, on non-residential land, and on surplus school sites. Considering the potential residential development from all these sources, a total of 6,927 additional dwelling units could be accommodated in Huntington Beach under the current General Plan and zoning (refer to Table 40) . SCAG has estimated a future housing need of 6,222 new units in the City through the year 1994. The Plan thus provides for a residential development capacity which is more than adequate to serve projected future housing demand. The Land Use Plan cannot therefore be interpreted as a constraint to the provision of affordable housing, particularly since 3,676 units are designated for higher density housing (Medium-High and High Density Residential ) , and can be more readily be priced to meet the needs of lower income households. 6-3 i TABLE 34 CITY OF HUNTINGTON BEACH RESIDENTIAL DEVELOPMENT CAPACITY OF LAND USE PLAN Total Acreage % of Total Land Use Catagory Permitted Density Designated City Acreage Estate Residential 4 units/gross acre 287 1 .7% Low Density Res. 7 units/gross acre 8,645 50.3% Medium Density Res. 15 units/gross acre 1,968 11 .5% Med-High Density Res. 25 units/gross acre 42 0.2% High Density Resid. 35 units/gross acre 603 3.5% Senior Residential varies 3 .1% Mixed Development varies 95 0.6% Planned Community varies 275 1 .6% TOTAL 11,918 69.5% Source: City of Huntington Beach Planning Department. Fees and Improvements: Various fees and assessments are charged by the City to cover the costs of processing permits and providing services and facilities, such as utilities, schools and infrastructure. Almost all of these fees are assessed through a pro rata share system, based on the magnitude of the project's impact or on the extent of the benefit which will be derived. However, these fees contribute to the cost of housing and may constrain the development of lower priced units. Certain fees could be waived or subsidized by the City for the provision of lower income and senior citizen housing. The majority of the Huntington Beach jurisdiction is highly urbanized with most of its necessary infrastructure, such as streets, electrical and water facilities, already in place. As such, the cost of land improvements is less than in undeveloped suburban or rural areas. Tables 35 and 36 present a comprehensive list of typical development fees associated with 4.5 unit/acre single family development and with a 30 unit/acre multi -family project. Development fees for single family construction are estimated at $10,399 per unit, whereas fees associated with multi -family construction are significantly lower at $4,827 per unit. This price differential reflects the fact that as land use densities increase, the proportion of the cost borne by each unit decreases. The most significant project development fees are school fees, parks and recreation fees, County sanitary sewer fees, and drainage fees. Building Codes and Enforcement: The City of Huntington Beach has adopted the State Uniform Building, Housing, Plumbing, Mechanical and Electrical Codes. These codes are considered to be the minimum necessary to protect the public health, safety and welfare. The local enforcement of these codes does not add significantly to the cost of housing. 6-4 Local Processing and Permit Procedures: The evaluation and review process required by City procedures contributes to the cost of housing in that holding costs incurred by developers are ultimately manifested in the unit' s selling price. The review process in Huntington Beach is governed by two levels of decision-making bodies : the City Council and the Planning Commission. One potential way to reduce housing costs is to reduce the time for processing permits . Table 37 presents a comparison of average development processing times in Huntington Beach with several surrounding communities. As this table illustrates, development processing times in Huntington Beach are at a minimum and compare favorably with other communities. As review times are already streamlined in the City, cost savings from "fast track" processing would be minimal . Nonetheless, as land holding costs can run over $1 ,000 per unit for a 9 to 12 month period, the City may wish to consider priority development review processing for low and moderate income housing applications. r 6-5 TABLE 35 CITY OF HUNTINGTON BEACH SUMMARY OF DEVELOPMENT FEES FOR TYPICAL LOW DENSITY RESIDENTIAL PROJECT Type of Fee Cost Per Unit Planning/Building Fees Tract Map $ 17.83 Conditional Use Permit 11 .67 Inspection 597.60 Plan Check 388.44 Strong Motion 8.85 Library 250.00 Processing 10.00 School Fee 3, 150.00 Parks and Recreation 2,395.00 Electrical Permit 153.44 Mechanical Permit 58.32 Plumbing Permit 107.50 Fence Permit 45.90 Subtotal $ 7, 194.55 Public Works Development Fees Sewer - City 150.00 County 1,500.00 Subtotal $ 1,650.00 Water 60.00 Drainage 1,330.00 Grading 30.00 Street Plans 45.00 Parcel Map - Plan Check NA Tract Map - Plan Check 90.00 Subtotal $ 3,205.00 TOTAL $ 10,399.55 Per Unit $ 46,797.98 Per Acre Source: City of Huntington Beach Department of Community Development Calculations based on: (a) 2, 100 square foot living area/400 square foot garage. (b) 4 bedrooms, 30-lot subdivision at 4.5 units/acre. (c) Type V construction. (d) Building valuation = $126,380. 6-6 TABLE 36 CITY OF HUNTINGTON BEACH SUMMARY OF DEVELOPMENT FEES FOR TYPICAL HIGH DENSITY RESIDENTIAL PROJECT Type of Fee Cost Per Unit Planning/Building Fees Tract Map $ 13.00 Conditional Use Permit 11 .67 Inspection 346.80 Plan Check 225.42 Strong Motion 7.89 Library 130.00 Processing 10.00 School Fee 225.00 Parks and Recreation 1 ,662.00 Electrical Permit 122.75 Mechanical Permit 46.66 Plumbing Permit 86.00 Fence Permit 8.46 Subtotal $ 2,895.65 Public Works Development Fees Sewer - City 150.00 County 1 ,500.00 Subtotal $ 1,650.00 Water 60.00 Drainage 200.00 Grading 5.00 Street Plans 7.00 Parcel Map - Plan Check NA Tract Map - Plan Check 10.00 Subtotal $ 1 ,932.00 TOTAL $ 4,827.65 Per Unit $144,829.50 Per Acre Source: City of Huntington Beach Department of Community Development Calculations based on: (a) 900 square foot living area/400 square foot garage. (b) 2 bedrooms, 1-lot subdivision at 30 units/acre. (c) Type V construction. (d) Building valuation = $52,580. 6-7 TABLE 37 DEVELOPMENT PROCESSING TIME IN HUNTINGTON BEACH AND SURROUNDING COMMUNITIES (in months) Hunt. Costa Newport Orange Beach Mesa Irvine Beach Count General Plan Amendment 4 6-8 8-12 6-8 12-24 Zone Change 1 .75 6-8 6 4-6 3-4 EIRs 4 1-2 4-6 1 3-4 Tentative Tracts 1.75 6-8 6-12 6-12 1-2 Site Plan Review 1 1-2 3-4 2-3 1-2 (Staff) Site Plan Review 1 .5 1-2 3-4 2-3 1-2 (Comm. ) Plan Checking/ 2 1 1-2 1 Building Permits Source: Huntington Beach Department of Community Development; Cotton/Beland/Associates, Inc. 6-8 6.3 Environmental and Infrastructure Constraints Portions of Huntington Beach are exposed to a variety of environmental hazards and resources which may constrain the development of lower priced units. In addition, deficiencies exist related to the provision of infrastructure to service new residential development. Floodplain: Situated on a low-lying plain and bounded by the Santa Ana River, Huntington Beach faces significant flood hazard. Over half the City's acreage, and approximately 70-80% of its residentially designated acreage, falls within the Flood Hazard Zone as defined by the Flood Emergency Management Agency (FEMA) . FEMA regulations require that all new residen':.ial development be graded up above the 100-year flood elevation which ranges from approximately one to 11 feet in the City. These restrictions on development in the floodplain results in a reduction in the number of units that can be built, increases the costs of construction, and slows down development. Oil Resources: Huntington Beach is historically an oil town. The numerous oil facilities currently operating in the City serve to reduce the amount of land currently available for development. lv,hile residential projects can sometimes be developed around producing wells, often development must be postponed until oil production halts and facilities are abandoned (20 to 30 years) . The presence of oil facilities thus reduces the amount of acreage available for development in the near future and/or increases the cost of development. The City's Redevelopment Agency is currently working with a private oil company in developing an oil consolidation site in downtown Huntington Beach. By consolidating the City's oil wells and storage tanks onto a single site, the City' s "oil lots" will be opened up for development. Approximately 90 percent of the City's oil lots have been purchased by the oil company, with the goal of completing the consolidation site within a two year period. In addition to the oil consolidation site, the City is working with property owners to implement measures to mitigate constraints to development on sites with remaining oil facilities. These measures include buffering/screening existing oil islands, abandonment of wells, and creation of Specific Plans. Hazardous Waste: Because of the long history of oil recovery operations in Huntington Beach, some vacant residential properties contain hazardous wastes related to abandoned oil wells, oil pipelines, or potential gas risk. These contaminated sites will require clean up prior to their development, thus adding to the costs of developing on these sites. Public Services and Facilities: As a highly urbanized community, most areas of the City are already served by sewer lines, water lines, streets, storm drains, telephone, electrical and gas lines. However, a major area of vacant land east of the Bolsa Chica designated for Residential Estate 6-9 has remained undeveloped due to the lack of water and sewer lines and storm drains in the area. To facilitate development in this area, the recently completed Ellis Golden West Specific Plan provides for necessary infrastructure improvements to be installed over the next few years. This Specific Plan will also help to alleviate another constraint to development in this area, fragmented land ownership. 6-10 7.0 HOUSING OPPORTUNITIES This section evaluates the potential additional residential development which could occur under the City's General Plan and zoning on vacant and underutilized land. Vacant Sites Vacant land planned for residential development is relatively scarce in Huntington Beach. Approximately 725 acres, or six percent, of the City's total 11 ,918 residential acres are currently vacant. Under existing zoning and general plan designations, these residential acres could support a maximum buildout of 7,587 additional housing units. However, as discussed in the previous section on environmentally constrained lands, much of the City's vacant residential land has been subject to development constraints related to oil production and fragmented ownerships. The City is actively working with property owners to remove these constraints by creating an oil consolidation site, developing specific standards to ensure compatibility between oil islands and residential uses and through implementation of Specific Plans. Through the City's activities, the following four areas which had previously been constrained due to oil production activities will now be available for residential development. These areas are illustrated in Figure 10, �.nd their dwelling unit capacity described below: Area #1: This parcel is approximately 19.69 acres in size and is designated for High Density Residential , permitting up to 35 dwelling units per acre. While the property has been historically utilized for oil production, the few oil wells remaining on the site are in the process of being removed. The property owner has submitted development plans to the City .or 331 attached townhome units on the site. Construction of these units is anticipated to begin in Spring 1990. Area #2: The Redevelopment Agency is currently working with a private oil company in developing an oil consolidation site in downtown Huntington Beach. Existing oil facilities located on the 20.72-acre Area #2 site are to be relocated on the oil consolidation site. Existing High Density Residential zoning on the site would permit the development of approximately 725 multi -family dwelling units on the property. Area #3: This area consists of approximately 47.62 acres designated as Residential Estate Density (2 du/acre) . The site is located in the Holly-Seacliff Master Plan area adjacent the proposed linear park. While the area had previously been identified as constrained by oil production, the Master• Plan provides for mitigation of oil constraints, through abandoning some wells and creating "oil islands" with remaining on-site oil facilities. By mitigating restrictions on development, approximately 95 single-family dwelling units will be able to be accommodated on this site. 7-1 • b! Cam! ♦�• YCi Or i• GO !i O$ r ! /1. �L tiGF �a • ••'i • y' �v, ytia I LF •• ,tf P - AiipoIl AFEA 4 ♦i — AREA 3 n mb.- / r ASCON � Ila�bou/ ����� ♦'-PR OPI-.RTY BOISA CHICA Id.—Comp r.y •• • SCa Cliff C,���n C4.b CCncranng r 1'I.int ® PAC"C / tom► P'I<'vK .rI •..ir.... .... 'nlr AREA 2 • �i�— CGnS I _ �n�•,1 � 1 p n C r= C O C E r\ N North -.-;•I�;n 10 I'F;l:\'IOUS1.1' CC1N}TF.;'•.;vCU I!\US SUfIAB11 IOR RI.SIIIIN11"\I I)IVHOP;,.INI Area #4: Similar to Area r3, this 38.48 acre site is located in the Holly-Seacliff Master Plan, which provides for mitigation of existing oil constraints. The Master Plan designates this site for an overall average density of seven dwelling units per acre, providing for a total of 269 dwelling units. The City is working with the property owners to encourage a mix of single and multi -family family housing types on this site. Through the City's efforts, 126 acres of land which had previously been constrained by oil production activities will be opened up to development. This residential acreage will provide for an increase in dwelling units, ranging from low density estate housing, to high density apartments and condominiums. Table 38 provides a breakdown of the number and type of additional residential dwelling units which could be constructed in Huntington Beach under the General Plan. Of the City's total 725 vacant residential acres, 478.8 acres can -be considered unconstrained and available for development over the five-year period of the Housing Element. This acreage will support a maximum buildout of 4,997 dwelling units, ranging in density from 2 to 35 units per acre. Nearly half (45 percent) of the potential dwelling units are the Medium-High and High Density residential land use categories, providing opportunities for lower cost housing development. Approximately one-quarter of these potential units are designated for Medium Density Residential , indicating a significant proportion of future residential growth will be in the form of duplexes and townhomes and lower density apartments and condominiums. Single-family homes will comprise approximately one-quarter of the City's future residential growth. A recently-adopted Specific Plan for the Ellis West area will serve as a vehicle for consolidating land ownerships, providing for approximately 600 residential estate dwelling units. Underdeveloped Sites In addition to development on vacant lands, there is the potential for new residential development on sites which are currently developed at densities lower than those permitted under the General Plan and zoning. In the Townlot, Oldtown and Downtown areas, many of the areas designated for densities of 15 units/acre are currently developed with single-family and lower density multi -family uses. Recycling of these lower density uses occurs when the intensity of use allowed in the zone more than offsets the costs of acquiring the improved site, demolishing the existing units, and constructing new higher density units . For the past several years, substantial recycling activity has been occurring in the Townlot, Oldtown and Downtown areas indicating that permitted densities are high enough to warrant recycling. Interestingly, while City zoning permits densities up to 15 units per acre in these areas, the market demand for single family homes has resulted in the majority of replacement units developed as single-family detached units. Single-family residential uses in the Townlot, Downtown and Oldtown areas are predominately developed on 50' x 115' and 25' x 115' sized lots. The recycling trend in these areas 7-3 TABLE 38 CITY OF HUNTINGTON BEACH VACANT LANDS SUITABLE FOR RESIDENTIAL DEVELOPMENT: 1989 Total Unconstrained 0 Vacant Potential Vacant. Potential Total Land Use Catagory Acreage DUs Acreage DUs DUs Residential Estate 222.0 724 182.6 605 12% (2-4 du/ga) Residential Low Density 98.39 688 86.4'. 605 12% (7 du/ga) Residential Medium Dens. 159.73 2,407 77 .9:. 1 , 169 24% (15 du/ga) Residential Medium-High 17 .55 439 17 .55 439 9% (25 du/ga) Residential High Density 62.05 2, 172 62.05 1 ,813 36% (35 du/ga) Planned Community 165.28 1, 157 52.23 366 7% (7 du/ga) TOTAL 725.00 7,587 478.3 4,997 100% Source: City of Huntington Beach Community Development Department, January 1989. '7-4 has been to demolish the existing single-family structure, and replace the unit with either two or three single-family units. Table lA illL.Strates the level of recent recycling activity, with 43 single-family units demolished in these areas in 1988, and 26 in the first six months of 1989. In order to estimate the net increase in residential development attributed to recycling over the five year period of the Housing Element, recycling activity over the past 18 months can be applied to the 1989-1994 period. Replacement units can be conservatively estimated at a ratio of two-to-one, although it is likely miany single units will be replaced at a three-to-one ratio. Based on these assumptions, it is estimated that the City will experience an annual recycling of 47 existing units, to be replaced with a total of 94 new units. Applying this annual recycling rate to the five year period of the Housing Element translates to an estimated net increase in 235 single family units which can reasonably be expected to develop during the 7/89 - 6/94 period. It should be mentioned, however, that many of the older residences in these areas are identified as historically significant on a local survey, and their removal would need to be addressed under CEQA. TABLE 39 CITY OF HUNTINGTON BEACH RESIDENTIAL RECYCLING ACTIVITY (OLDTOWN, TOWNLOT, AND DOWNTOWN AREAS) Sinqle-Family Units Recycled to Higher Densities 1988 Jan-June 1989 Oldtown 8 8 Townlot 32 17 Downtown 3 1 Total 43 26 Source: City of Huntington Beach Community Development Department 7-5 'I r / Second Units Intensification of development in existing residential areas could also occur through the addition of "second units" on single-family lots . Second units, or granny flats as they are commonly known, are dwelling units constructed on the same parcel on which the primary single-family unit is located, providing independent living quarters which the homeowner may rent out or provide for 'a family member or other persons(s) . Second units provide a cost effective means of serving additional development through the use of existing infrastructure, and provide affordable housing for low and moderate income small households. Second units have the additional benefit of allowing many older persons to remain in their homes by providing additional income and security. The City has adopted an ordinance to facilitate and regulate the development of second units. While the ordinance does require a Conditional Use Permit for development of second units, reasonable parking and other requirements have been established so as not to discourage their development. Planning Department records indicate approximately 24 applications for second units have been submitted to the City since 1984, averaging about five applications per year. Using this data to estimate the number of future second unit applications suggests t'iat approximately 25 new applications could be expected over the five year period of the Housing Element. Redevelopment Areas Five redevelopment project areas have been established in Huntington Beach: Huntington Center, Oakview, Talbert-Beach, Yorktown-Lake, and Main-Pier. Activities involving residential use include affordable senior housing, rehabilitation of existing units, residential/commercial mixed-use, and market-rate single family and multi -family development. Within the five year period of the Housing Element, the City is commited to working with the development community to achieve an additional 900+ units in the Main Pier redevelopment project area. These units will be developed on property contained within the following three projects: The Waterfront: Pursuant to the approved Development Agreement for The Waterfront project, a total of 894 high density residential units (35 du/acre) may be constructed north of Walnut Avenue between Beach Boulevard and the northerly property boundary. Approximately half of the units (448) are to be constructed in the first phase, scheduled for completion in 1992, with an additional one-quarter of the units (223) to be constructed in 1994 as Phase 2, thereby totaling 671 units to be developed within the five year time frame of the Housing Element. Pier Colony: This high density condominium project (32 units/acre) located at Pacific Coast Highway and Second Street is scheduled for completion in July 1990. It will consist of 130 one- and two-bedroom condominiums. 7-6 Main Pier Phase II : This mixed-use project located at Pacific Coast Highway and Sixth Street is currently in the planning stages. At this time, 103 medium-high density units (25 units/acre) are proposed, with a scheduled completion date of June 1991 . Non-Residential Land In addition to land which is currently designated for residential development, the City is in the process of redesignating a non-residential parcel to accommodate residential land uses. City Council and Coastal Commission have ammended the General Plan to redesignate the 40-acre Ascon property from Public, Quasi -Public, Institutional to Residential Medium Density. (The site's general location is identified on Figure 10) . The conceptual plan approved for this property provides for a total of 600 dwelling units at -:n average density of 15 du/acre. The Ascon site has historically been utilized as a landfill , and will require site clean-up to remove contaminated soil . The applicant is in the process of preparing a remediation plan for soil clean-up, with site clean-up estimated to be complete within the next two years. Residential development on the site will immediately follow site clean-up, and can be expected to be completed by the end of 1992. Surplus Land Two former school sites are presently either under construction or in the entitlement stage for residential development in Huntington Beach. Crestmore Estates is a 52-unit low density single-family project which is now under construction. Heritage Village is a mixed development project which is still in the entitlement stage. It is a 15.2 acre, 520 unit residential/commercial project which is proposed at a density of 34 units per acre. The zoning will be a Specific Plan. In addition to these school sites, four other residentially-zoned school sites are being proposed for residential development by the school districts. Huntington Beach Elementary District has proposed 9.75 acres for residential on its Lebard School site, and Fountain Valley School District has advertised for bids on its 9. 10 acre Bushard School site. These two sites are both zoned R-1/7du/acre, providing for the development of 132 dwelling units. Two other surplus school sites, Golden West College (6.81 acres) and Wintersburg High School (14 acres) , have been advertised for bids by the school districts. These sites are zoned single-family residential and residential -agriculture respectively, and could accommodate a total of 62 dwelling units. However, development under this twenty year old base zoning would be incompatible given the location of these sites along major arterials and surrounding higher densities. These sites will likely be rezoned to accommodate higher density residential development consistent with their setting. 7-7 Bolsa Chica The Bolsa Chica area is another very significant housing opportunity for the City. The City has initiated annexation procedures for the 1 ,635 acre vacant area known as the Bolsa Chica. While nearly two--thirds of the Bolsa Chica is comprised of a State Ecological Reserve and wetland, the remaining 400-plus acre- located immediately adjacent exiting residential neighborhoods, are planned for residential development. Th Bolsa Chica is located within the City's sphere of influence and is surrounded on all three sides by the City of Huntington Beach (refer to Figure 11) . At the meeting of October 2, 1989, the City Council selected an outside law firm to assist the City in preparation of a development/pre-annexation agreement for the Bolsa Chica area. In addition, a memorandum of understanding on the Bolsa Chica Environmental Impact Statement (EIS) was approved by Council at their meeting of October 16, 1989. Property owners in the Bolsa Chica area are limited to Signal Landmark Inc. , State Lands Commission, and the Metropolitan Water District; all have been supportive of annexation to the City. The anticipated time frame for annexation includes completion of the Final E.1S by Fall 1990, with annexation to occur in late 1990 or early 1991 . Development is expected to occur within 3 years and will include a minimum of 3800 and a maximum of 5700 residential units. A coalition representing five interest groups (Orange County, State Lands, property owner Signal Landmark, Inc. , a citizens interest group Amigos de Bolsa Chica, and the City) is projecting approximately 4400 residential units; Figure 11 provides a conceptual plan of development in the Bolsa Chica as proposed by the coalition. The actual number of units is uncertain at this time because the cost of restoring the approximately 1100 acres of wetlands is not known. Some funding may be available from the Los Ange' es and Long Beach ports as a result of wetland mitigation requirements. Should this funding materialize, the restoration costs to the major landowner (Signal Landmark, Inc. ) would be reduced, thereby allowing deve',opment of fewer units. City services appear adequate to serve the project development and the City is participating in the Bolsa Chica traffic modeling project to insure that circulation concerns are addressed. Availability of Public Services and Facilities As a highly urbanized community, public facilities are available to facilitate development throughout Huntington Beach. All of the land designated for residential use in the Low Density, Medium Density, Medium-High Density and High Density categories is presently served by sewer lines, water lines, streets, storm drains, telephone, electrical and gas lines. While areas designated for Residential Estate are not currently served by sewer and water lines and storm drains, the Ellis I 7-8 RES DENTIAL DENSITIES UP TO 6.5 DU/AC i UP TO 12.5 DU/AC r_— S LINEAR UP TO 18.0 DU/AC �% �'• - - _ _ ::I \A PARK / M r r i, ESHA I �' �, -t:. _ WETLANDS HA /E S c -ACREAGESUMMARY - _ =`.• - � � I�'"-:";:;' _ �':r:��: "- - - - - OPEN SPACE t TYPE - LAND USE T PE ACRES ,` :=;�� :' :...�, \ i i hl RESIDENTIAL 412.3 '•/s'== J\ \ cii'_'. i,.�.:-<` - "-��. A ,i�1 I `. Nlc1LANDS/ESHA/OPENSPACE 1104.9 +• •�::=.- :\� 'i- `''' -'�`^�� --` '. `. .-1 LINEAR PAP.IJESHA 50.9 DESIGNATED ROADWAYS 53.7 FLOOD CUNTR(lL CHANNEL 13.2 JE 'OTAL 1535.G z,: / ._ . VlW ET LANDS ESHA/ . sriOPEN SPAC `` �j - / /' WETLANDS ESHA / OPEN SPACE y WETLANDS: fis r_ ESHA C t '.OPEN G SPACE I / 0.,. C / )� 1 ..,... LINEAR -- j / PARK / ESHA WETLANDS / ESHA / OPEN SPACE :1'•.' \\�. ..t,•„•„r � tNON NAVIGABLE OCEAN CONNECTION SOURCE: VALE SPECK TAYLOR PACIFIC OCEAN v PACIFIC OCEAN Fi North FIGURE 11 BOLSA CHICA RESIDENT IAI.,DEVELOPMENT PLAN � r Golden West Specific Plan provides for necessary improvements to be installed over the next few years. This Specific Plan will also help to alleviate another constraint to development in this area, fragmented land ownership. Residential Development Potential Compared with Huntington Beach's Housing Needs As indicated in Section 4.5, the Regional Housing Needs Assessment (RHNA) prepared by SCAG has identifed a future housing need for Huntington Beach of 6, 228 units to be developed over the next five years (1989-1994) . Combining the residential development potential on vacant, underutilized, redevelopment, non-residential and surplus sites, an estimated 7,527 additional units could be developed in the City (refer to Table 40) . This would indicate that the City's General Plan and zoning provide for a residential development capacity which is adequate to accommodate the City's share of regional housing needs. In addition, with annexation of the Bolsa Chica, an estimated 3,800 to 5,700 additional dwelling units could be accommodated in Huntington Beach. In terms of development opportunities for lower income households, approximately half of potential residential growth is allocated to higher density housing (Medium-High and High Density Residential ) ; which can more readily be priced to meet the needs of Very Low and Low Income households. However, even at these higher densities, the City will reed to offer incentives to private market developers to ensure the provision of units affordable to Very Low and Low Income households. Condcminium units will provide homeownership opportunities for some smaller, Moderate Income households though ownership assistance will still be necessary to provide many of the City's Moderate Income households the option of home purchase. 7-10 TABLE 40 CITY OF HUNTINGTON BEACH POTENTIAL RESIDENTIAL DEVELOPMENT SUMMARY RESIDENTIAL DWELLING UNIT POTENTIAL Under- Land Use Vacant utilized Second Redevelop- Non-Resi - Surplus Category Land Land Units ment Areas dential Land Land TOTALS Residential 605 14 619 Estate Residential 605 235 25 232 1 ,097 Low Density Residential 1, 169 600 1 ,769 Medium Density Residential 439 103 542 Medium-High Density Residential 1 ,813 801 520 3, 134 High Density Planned 366 366 Community TOTALS 4,997 235 25 904 600 766 7,527 7-11 7.2 Energy Conservation The City has many opportunities to directly affect energy use within its jurisdiction. Because a major proportion of energy consumed in a community is tied to on-site uses, both directly (heating and cooling buildings` and indirectly (through the impact of development patterns on activities such as transportation) , conservation policies directed toward the residential development process offer the greatest potential for the City to reduce energy waste. In this section, building and land use policies are briefly reviewed to identify the steps the City could take to encourage energy conservation in residential development Building Conservation Standards for New Construction Energy conserving building standards for new construction (Title 24 of the California Administrative Code) have been in effect in the State since 1978 and were upgraded in 1982. These standards can be met by any of three alternative approaches: a passive solar building, a well -insulated non-solar building, and a building with an active solar domestic hot water system. Current policy in Huntington Beach with respect t­ energy conservation building standards involves enforcement of Title 24 standards, as mandated by the State. Modifying building standards represents the most logical and effective means of improving the energy efficiency of buildings yet to be built. Two strategies are available to the City to reduce energy use in newly constructed housing: Minor modifications to building codes and standards: Features such as insulation in walls, ceilings and water heaters, and weatherstripping around doors and windows would significantly reduce energy now wasted in heating and cooling. A well -insulated building is also more comfortable because there are fewer drafts. Passive Solar Design: This approach involves using the building structure itself as an energy source, utilizing energy from the sun and local climate to both heat and cool buildings. Features which should be incorporated include winter and summer shading of south-facing glass, increased thermal mass of the structure to control temperature variations, and appropriate exterior colors and vegetation to reduce artificial cooling requirements. Estimates by the California Energy Commission in Orange County indicate that 85 to 90 percent of the heating and cooling needs of typical tract homes could be met by incorporating passive solar designs. 7-12 Retrofitting Existing Housing While Title 24 and local building codes are effective means of conserving energy in new residences, they do not apply to the more than 70,000 residential units currently existing in Huntington Beach. Techniques reducing energy use in existing residences, termed weatherization or retrofitting, are therefore important opportunities for energy conservation. Weatherization typically involves the instal Iati:­n of attic insulation, caulking and weatherstripping around doors and windows, water heater blankets, and devices to shade south-facing windows during hot summer months. Weatherization can reduce residential energy consumption by 30 to 60 percent without loss of personal comfort or change o ' lifestyle. Currently, the City is not involved in retrofitting existing housing units. Support for Weatherization is being provided by the federally mandated Residential Conservation Service (RCS) , in which gas and electric companies offer home energy audits to eligible customers. Retrofit ordinances have to be evaluated with respect to their possible effect on the housing market. Although retrofitting may add to the price of housing, it could actually improve the ability of a buyer to qualify for a loan. This is because weatherized houses have lower utility bills, which is a consideration in the debt-income ratio used in decisions of grant loans. The City may also consider implementing a variety of techniques which would promote weatherization. The City may follow the model being implemented in Santa Monica. The City of Santa Monica utilizes RCS funds to run its own conservation program which sends municipal energy conservation teams to different neighborhoods to install energy conserving devices. The program is offered for both multi -family and single-family residential structures. The City could also adopt retrofit ordinances. Typically, such ordinances require the installation of specific, cost-effective weatherization measures in residential buildings built prior to the 1978 building standards. Compliance with these ordinances would be required at the time of resale of the property. The fact that 40 percent of Huntington Beach's housing is rental property underlines the importance of a retrofit ordinance for the City. Owners of rental property have little incentive to voluntarily weatherize rental units. Renters, in turn, may shy away from energy savings investments in their homes since they may not occupy the property long enough to recover the costs involved. Renters are also legally prevented from improving their homes without permission of the owner. 7-13 Active Solar Energy Conservation Another means of conserving residential energy is the active solar energy system. Active solar systems, in contrast to passive solar design, involve collecting the sun's energy at one place (usually rooftop collectors) and transferring it mechanically (using pumps or fans) to a separate storage area. In Southern California, active systems are generally toy expensive for space heating but are particularly well suited to heating hot water for domestic, pool , and commercial use. State and Federal Tax Credits The economics of solar hot water heating are closely tiE!d to state and federal income tax credits . Currently, there are no stz.te tax credits available for solar heating of spas and pools . A solar tax credit of 50% is granted for the installation of solar systems in residential dwellings . There is a $3,000 limit on the tax credit per solar system. Federal tax credits are granted for solar space and hot water heating but not for pool heating. Homeowners as well as members receive a 40 percent tax credit for the first $10,000 spent for a solar system granted the unit is built before 1977. Landlords are eligible for a business energy credit of 15 percent for installation of active solar systems in rental units regardless of when they are constructed. The cost-benefit-analysis for solar systems should also include indirect economic benefits such as reduced imports of nonrenewable fuels, increased energy self-sufficiency, reduced environmental pollutior , and stimulation of local employment. Promoting Solar Development The City has various alternatives for promoting solar development `wit' in its jurisdiction. More specifically, the City may give careful consderation to implementing some set of the follow programs: Adoption of solar systems ordinances. Numerous cities and counties throughout California have enacted ordinances requiring the use of solar energy as part of the heating system for new pools and spas. Many communities have also adopted ordinances requiring solar domestic hot water heating. Mandating solar systems through design review procEss. By requiring that solar systems be a condition for approval of subdivision maps, local government would ensure that solar be incorporated into larger housing developments which comprise a majority of the larger housing developments in Huntington Beach. In comparison to the implementation of a solar systems ordinance, this z.pproach would be simpler and less costly to adminster, but would require more involvement by the City's planning staff. 7-14 i, The Municipal Solar Utility (MSU) concept. An MSU provides residents with financial assistance to facilitate the adoption of solar systems in the community. It can take one of three basic forms: 1) direct services offering a range of products and services to meet consumer needs; 2) broker MSU which matches the needs of residents with solar suppliers. This service offers low interest loans, technical 'assistance, system maintenance, and links customers with private solar firms which sell and install systems; 3) a facilitator MSu which helps customer define their needs by offering consumer services, technical assistance, post-installation inspection, and complaint mediation. Land Use Controls The City can take the intiative in guiding local development and land use in a way that reduces energy use requirements substantially over the long run. This discussion covers three areas in which the City can exercise its power to ensure that land is developed in an energy efficient manner: solar access, residential design standards, and general land use guidelines. Solar Access: The lack of guaranteed direct access to sunlight is one of the major barriers to more wide-spread use of solar heating. In 1978, the California State Legislature passed the Solar Rights Act and the Solar Shade Control Act which provide a firm basis for protecting solar access, but the burden of responsibility for doing so is placed on local governments. In an effort to ensure solar access within the jurisdiction, the City may give careful consideration toward implementing specific standards in its zoning, subdivision, environmental , and Site Plan Review regulations which will address the issue of adequate solar access for solar systems. Residential Design Standards: In 1980, the City adopted a Land Use Amendment (Amendment No. 80-1) to the General Plan that reflects Huntington Beach's commitment to energy-efficient residential design. Design features which would go toward meeting this policy include careful site orientation, passive solar architecture, and use of deciduous vegetation for shading. Three alternative approaches may be considered by the City in implementing energy efficient residential development: 1) provide incentives to developers who voluntarily incorporate energy efficiency in their protects; 2) adopt development standards that specify to what extent energy-efficient design must be incorporated into residential projects; and 3) facilitate the incorporation of energy concerns into the development review process by developing -a comprehensive list of energy conservation criteria that could be used in evaluating the energy conserving potential of submitted plans. 7-15 . 1 Another tool for ensuring energy conservation in new development is the California Environmental Quality Act (CEQA) . Under Appendix F of this Act, energy use implications must be considered in the drafting of Environmental Impact Reports. The City could require developers to submit, as part of their plans, a "statement of energy efficiency" , in which they must specify the measures taken to minimize energy use in their proposed development. Land Use Conservation: Because 42 percent of total energy consumption is used for local travel , considerable conservation can be achieved by reducing local travel . Intergrating land uses helps achieve this goal . Neighborhoods that encompass a mix of residential and service-related land uses (e.g. : convenience grocery stores, low intensity offices and commerical space, recreational facilities) promote pedestrian movement and significantly reduce energy consumption used for travel . Short distance travel may also be reduced by facilitating bicycle travel . Huntington Beach is well -suited to bicycle travel , both topographically and climatically. Safety of bicycle and pedestrian paths should be an important consideration in the review of new housing developments. Similarly, pedestrian paths should be as short and direct as possible, providing short-cuts through particularly long blocks and major development sites. s f i 7-16