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HomeMy WebLinkAboutAffordable Housing - RDA Housing Policy 1993 - Inclusionary o 3i 3v y 3v sT� 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 age of eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the HUNTINGTON BEACH � ,P,�UBLIC.NO,TICE,� INDEPENDENT, a newspaper of general �N I LEGAL°dNOTICEf circulation, printed and published in the City or '_ ORDINANCE �tts'NO`3�130 Huntington Beach, County of Orange, State of i AN ORDINANCE OF THE CITYI.OF HUNTINGTON California,and that wta 'AM,nfied Notice is a true and BEACW ENDING "THE HUNTINGTON;BEACH.OR= complete co as was rinted and published in �DINANCE;.CODE BY ADD= P PY P P fINGSECTION-9637 TO AR! the Huntington Beach and Fountain Valle �I CE IVE RELATING TO Y INCENTIVESFOfaDEVELr issues of said newspaper to wit the issue(s) of• DEVEL- OPERS OF"_AFFORDABL'E • HOUSING ;,`; SYNO"P8M Ordinance No.. 3130 adds":section' 9637. to article`963.'The Government Code requires, February 13, 1992 tftd lfwa developer of a rest-t. dential i project zoned and 1 generaK 11- ned for five or morex°u-nits'on a?'speciflcj site;?requests a;=densityi tignus:arid/.or„other incen-i tivesfor the purpose off providing affordable-thous-.i ing-forqualifying residents, very jdW and lower Income households; the City must, grant tho, request. Or-. dinance No.3136 provides Mrocedare for implement= :ing'and moniforlrig a-den- ! pty-bonus proggram THE-FULL'rTEXVOF THE 'ORDINANCE -IS' `AVAIL- -AL!LE 'INM--THE CITY .CLERK'S OFFICE, "ADOPTED by 'the- City- Council of.the City of.Hun tington Beach at an regular, meeting held Monday,--Feb- 94ary 3 ,1992 by the fol,I lowing roll call vote:, . I declare, under penalty of perjury, that the YAYEs Councflrrtem l bees Robltallle, Moul foregoing is true and cornea -ton-Patterson,t Winch �eII,_;::S:I;Fy-a;.sl±raen, MacAllister;Kelly February 13 2 -NOES Counollmem: Executed an r 199� hers none f, at Costa Mesa, California r A'BSENT Council-' - S':IFT';. 0 F N'IJ;N �TINGTON'BEACH,Con= Inle Brockway, ,CI Signature Published Huntington Beacq/FounCain Valley In- dependence :February _13,, 022.224 PROOF OF PUBLICATION Compliance Plan. ■ Redevelopment Agencies must prepare a plan showing how it will meet these requirements within ten years. ■ The Plan is to be updated at least every five years -- in conjunction with the City's Housing Element. • Goals ■ The attainment of decent housing within a satisfying living environment for households of all socioeconomic, racial, and ethnic groups in Huntington Beach. ■ The provision of a variety of housing opportunities by type, tenure, and cost for households of all sizes throughout the City. ■ The development of a balanced residential environment with access to employment opportunities, community facilities, and adequate services. i i Priorities The Agency will. .. .. ■ Provide replacement housing as required. ■ Focus set aside funds on low and very low income projects within project areas. ■ Rely on conditions on private projects to meet moderate income housing needs. • Action 1 ■ Agency assisted projects will meet production and replacement requirements on site if feasible. ■ Requirements triggered by projects of three or more units. i Action 2 ■ Off-site solutions must be in same project area. ■ Control of off-site location required before DDA/OPA is approved: Action 3 ■ Regardless of locale, all affordable units will provide at least 40% for very low income households. ■ All units shall remain affordable for maximum feasible time. • 2. The project shall be designed to be compatible with, and � complement the scale and character of the adjoining land uses; and 3 . Not more than twenty (20) percent of the buildings on any block may make use of the above described bonus (except where the R3 and R4 land use designation applies to less than eighty [801 percent of a block) . This limitation may be exceeded if the Planning Commission finds that there is not an undue concentration of high-density buildings in the immediate neighborhood, and finds that all other applicable criteria have been met. F. Alternatives to Providing Density Bonus for Oualified Proiects As an alternative to granting any density bonus required by the California Government Code for a qualified project, the Planning Commission may provide other incentives of equivalent financial value including, but not necessarily limited to: 1. Construction of public improvements appurtenant to the proposed development, which may include, but shall not be limited to, streets, sewers and sidewalks; 2. Utilization of Federal or State grant monies or local revenues to provide land for the project at a reduced cost; • 3 . Exemption of the project from any provisions of other City ordinances which may cause an increase in the cost of the housing units to be developed; and 4 . Expedited case processing. Note: A pro forma outlining land costs, building costs and estimated sales or rental price shall accompany all requests for financial assistance. G. Additional Incentives for Providing Affordable Housing Units that are not Required Pursuant to Section 1. Site coverage sixty-five (65 percent; 2 . Common open space - maximum seventy (70) percent reduction if replaced by private open space; 3 . Minimum unit size studio - 300 square feet, one (1) bedroom - 450 square feet, three (3) bedroom - 800 square feet. -4- (1804D) . Off-Site Construction of Affordable Units Developers of residential projects of three (3) or more may apply for, and at the discretion of the City, an exception to Section in order to provide required affordable housing off-site, at one or several sites . Application materials for the off-site project shall be filed concurrently with application materials for the primary project. The Commission shall review the off-site affordable units and affirmatively find that: A. The number of units provided off-site is equal to or greater than the number required on-site: B. Off-site projects may be new construction or rehabilitation of existing non-restricted units conditioned upon being restricted to long-term affordability. "At Risk" 'units identified in the Housing Element may be used to satisfy this requirement; C. All affordable off-site housing shall be constructed or rehabilitated prior to or concurrently with the primary project and final approval of the project shall be contingent on completion and final approval of the affordable units; D. Off-site housing may be constructed in conjunction with a non profit housing development corporation; . E. The off-site affordable housing shall not result in an over-concentration of low-income housing in any specific neighborhood; and F. The proposed off-site affordable development shall not adversely affect the character, or historical or architectural integrity of any existing structure or neighborhood for which it is proposed. Miscellaneous Provisions A. The conditions of approval for any project which requires affordable units shall specify the following items: 1. The density .bonus being provided; 2. The number of affordable units; 3 . The number of units at each applicable sales price or rent level; and 4 . A list of any other incentives offered by the City. Any error in the conditions of approval shall not affect any of the applicant ' s responsibilities in meeting those requirements -5- (1804D) B. An Affordable Housing Agreement shall be executed between the applicant and the City prior to issuance of building permits outlining all aspects of the affordable housing provisions. 1. Within ninety (90) days of the approval of a project containing affordable units, the applicant shall execute and record the City' s Affordable Housing Agreement. 2 . Within ninety (90) days of the approval of a project requiring an in-lieu fee, the applicant shall execute and record an Agreement to pay an Affordable Housing In-Lieu Fee, which Agreement shall specify the amount and stipulate that fifty (50) percent of the fee may be paid at time of obtaining a building permit and fifty (50) percent shall be paid before receiving a Building Permit. C. Construction Schedule. All affordable on-site units in a project shall be constructed concurrently with or prior to the construction of the market rate units unless otherwise approved by the Planning Commission through a phasing out. D. Unit Type and Location. All affordable units shall be reasonable dispersed throughout the- project unless otherwise designed through a master plan, shall contain on an average the same number of bedrooms as the market rate units in the project, and shall be comparable with the market rate units in terms of appearance, materials and finished quality. The Planning Commission may modify the requirements as to unit size or type if it is found that such a modification would better serve the affordable housing needs of Huntington Beach. E. Phasing. In the event a phased project is approved by the City, required affordable units shall be provided equally within each phasing. F. Use of Funds. Affordable Housing Trust Funds shall be used primarily for projects which have a minimum of fifty (50) percent of the dwelling units affordable to low- and moderate-income households, with at least twenty (20 ) percent of the units available to low-income households. All units which' obtain housing funds shall maintain the affordability of the units for the life of the project. The funds may, at the discretion of the City Council, be used for pre-development costs, land or air rights acquisition, rehabilitation, land write downs, administrative costs, gap financing, or to lower the interest rate of construction loans or permanent financing. In a . project which includes market rate units, trust fund monies shall only be provided to assist in the acquisition and construction of those units affordable to low- and moderate-income households. -6- (1804D) • G. Occupants. New affordable units shall be occupied in the following manner: 1. If residential rental units are being demolished and the existing tenant(s) meets the eligibility requirements, he/she shall be given the right of first refusal to occupy the affordable unit(s) ; or 2. If there are no qualified tenants, or if the qualified tenant(s) chooses not to exercise the right of first refusal, or if no demolition of residential rental units occurs, then qualified households or buyers will be selected from the City' s affordable housing waiting list. Sale of Affordable Units Affordable units shall be sold at prices affordable to low- or moderate-income households at a price that will result in the total annual debt service (including taxes, utilities, association dues) shall not exceed the standard established by HUD for the County of Orange. Affordable units must first be offered to eligible buyers . "Lower income" affordable units shall be rented at a price that is affordable to a household whose income is sixty-five (65) percent of median income. • -7- (1804D) MANUFACTURED HOUSING EDU9TIONAL TRUST ORANGE COUNTY Ctwrtt,'l B y Ecyn, a we .3 d6-9.3 Board of Trustees DATE: March 26, 1993 Executive Committee Clarke Fairbrother—President TO: Mayor Grace Winchell Riley District Director Mayor Pro Tern Linda Mounton-Patterson Janet Gilbert—Vice President Councilmember Ralph Bauer, Councilmember Victor Leipzig, La Habra Director Councilmember Earle Robitaille, Councilmember Jim Silva, and W. Lee Miller—Vice President Councilmen Dave Sillivan Wieder District Director cc: City Manager Michael Uberauga Jerry Jacobson—Secretary Dana Point Director Paul Bostwick—Treasurer FROM: Vickie Talley, Executive Director Anaheim Director Mike Cirillo RE: Mobile Home Park Issues Placentia Director Stan Magill Garden Grove Director In anticipation that the purpose of discussing mobile home issues at today's Deann Pancheri meeting is to decide whether this is an issue that the City Council wishes to Roth District Director commit City resources to, I urge you to please consider the following: Executive Director Vickie Talley There is an initiative petition being circulated in support of placing mobile Board Members home rent control on the ballot. If this is an issue the citizens and voters of Huntington Beach feel strongly about, they will support this effort and the John Barr initiative will qualify for the ballot. Proponents of mobile home rent control Stanton Director have until May 11, 1993 to complete their signature gathering efforts. Action Cyprresss Director Bob e irector by the City Council prior to that date would seem to be premature. Howard Brigham Fullerton Director Steve Esslinger In response to mobile home park ter..ant allegations: Laguna Beach Director Les Frame • The facts being presented have not been verified. Tustin Director Dudley Frank • Need has not been established. Mobile home park tenants "want" their Santa Ana Director rents rolled back and their annual rent increases limited. Who wouldn't?! But, Dan Jacobs there is a difference between "need" and "want". Orange Director Boyce Jones Director at Large The Council has heard only one side of the issues from a few tenants • Jim Martin who do not represent the feelings of all of the mobile home park residents in Costa Mesa Director the City. Don McCalla Director at Large Some important facts to consider: Dick Nerio Westminster Director Rent control is not needed to help low income,needy Huntington Gene Pica Beach mobile home ark residents. Rent subsidies are alreadyimmediately Huntington Beach Director p y Jack Stanaland available to help the qualified needy from the Orange County Housing Director at Large Authority Section 8 Program and from the MHET Mobile Home Rental Tom Tatum Assistance Program (Inforr_riation attached.) Director at Large • Rents in Huntington Beach mobile home parks are fair and reasonable. They range from a low in the high $200's to a high rent slightly over$800 a month. 500 N. State College Blvd., Suite 1020 • Orange, CA 92668 9 (714) 935-1900 • FAX (714) 935-1145 ' Page 2 March 26, 1993 • Annual rent increases are and have been fair and reasonable. Rents and rent increases vary from park to park. In many parks, the residents and park owners have negotiated long term leases, which specify the amount of annual rent increases. Long term leases are exempt from rent control. • Many mobile home park residents own their coaches and have only one monthly shelter payment-- the lot rental. This rental fee includes a plot of expensive Huntington Beach real estate, full service utility systems, streets, and recreation facilities including pools and clubhouses. • Not all parks are senior parks. Many are all-age, family parks. • Mobile home park rent control is an extremely time consuming and expensive proposition for Cities. The City of Anaheim staff reported to the Council in 1991 that the estimated cost of implementing a tenant sponsored rent control initiative would be nearly a half million dollars a year. These costs increase dramatically when the City has to defend the law in court. • There are 18 mobile home parks with about 3,000 spaces in the City, including Driftwood which has been approved to close. They range in size from trailer parks as small as 14 spaces to full service mobile home communities of over 300 spaces and make up less than 2% of the total city population. The vast silent majority of mobile home park residents are happy and content with mobile home park living and feel it is affordable. In conclusion: • Mobile home park issues are involved and tend to be emotional. It's important to separate the fact from the emotion and the needs from the wants. Once need is established, the question becomes, "Should the City become involved?" • MHET is conducting a survey of all the parks in the City and will make the information available to the City in response to tenant allegations of unreasonable management policies. • Huntington Beach park owners and MHET welcome the opportunity to work with the tenants to resolve issues and with the City Council to facilitate a better understanding of the mobile home park industry. MHET is available as a resource and offers the support of the over 300 mobile home park owners in the County and their privately funded rental subsidy progam as the solution to the issue of helping low income mobile home park tenants. Rent controls and City involvement in regulating the private mobile home park business is not needed and cannot not supported by factual evidence. Orange County Manufactured Housing Educational Trust Mobile Home Rental Assistance Program 500 N. State College Blvd. •Suite 1020• Orange, CA 92668• (714) 935-1952 Eligibility Guidelines To qualify for temporary rental assistance sponsored by MHET, all of the following guidelines must be met. 1. Applicants must own their coach and have lived in the mobile home park where they are currently residing for the past three consecutive years. 2. Applicants must meet the low income guidelines used by the Orange County Housing Authority for the Section 8 rental assistance program.* 3. Total monthly housing costs must exceed 40% of monthly income. 4. Real property (other than coach in which the applicant.lives) may not exceed $10,000. 5. Personal property (bank accounts, automobiles, stocks and bonds, etc.) may not exceed $5.000. 6. Other resources available to the mobile home park resident must be utilized prior to receiving assistance from the park owner. Such resources include: help from other family members, home sharing programs, additional Social Security payments, alternative health care programs to reduce medical expenses, etc. 7. The applicant must qualify for Section 8 rental assistance and be on the waiting list to receive this government subsidy at the earliest possible time. 8. The jurisdiction (city or county) in which the park resident resides is not regulated by rent control. 9. All of the forms.provided in the Rental Assistance Application packet must be completed with.every question answered. 'Qualification guidelines for Section 8(for more information call Orange County Housing Authority(714)836- 3033.) •62 years or older *handicapped or disabled for at least one year *gross annual income from all sources 50%of median income for Orange County;within the following limits for family size: 1 person $18,250 4 people $26,100 2 people $20,900 5 people $28,200 3 people $23,500 6 people $30,300 9/92 Orange County Mobile Home Rental Assistance Program Sponsored by Orange County Park Owners PROGRAM DESCRIPTION: Orange County RAP helps needy low income Orange County mobile home park tenants meet increasing housing costs. WHAT THE PROGRAM DOES: Monthly rent subsidies are paid to qualified mobile home park tenants on an interim basis until they begin receiving government housing assistance. WHAT THE PROGRAM DOES NOT DO: No liens are taken against the coach and no pay back is required. The program does not, however, subsidize mobile home park tenants who have adequate resources and assets to pay their rent. WHO QUALIFIES: Mobile home owners who: •own their coach •have lived in the park where they are currently residing for the past three consecutive years •have applied for the government Section 8 rental subsidy program and are on the waiting list for assistance. •live in a jurisdiction that is not regulated by rent control •complete all of the appropriate application forms WHO PAYS FOR THE RENT SUBSIDY? Mobile home park owners. QUESTIONS? Call (714) 935-1952 Or Write: Rental Assistance 500 N. State College Blvd. #1020 Orange, CA 92668 City of Huntington Beach March 26 , 1993 Op i AFFORDABLE HOUSING PRESENTATION MARCH 26, 1993 I. Overview of Existing Affordable Housing Law & Current Policy Documents A. State Mandated Housing Element B. Redevelopment Law o Replacement vs. production C. City Affordable Housing Policy o Task Force recommendations D. CHAS o Purpose E. Coastal Zone Requirements U. Existing Programs A. Density Bonus B. Single Room Occupancy C. Second Unit ("Granny" units) D. Housing Rehabilitation and Neighborhood Preservation o CDBG & 20% set-aside E. Housing Survey o Purpose F. Mobile Home Inspections III. Proposed Programs A. Affordable Housing Ordinance B. Modified Development Standards & Development Incentives d 17 C. In-lieu Fee Program D. Incentives for Preservation of Existing Affordable Housing E. Rewrite of Downtown Specific Plan to Include Additional Incentives for Affordable Housing F. Redevelopment Agency Housing Policy* IV. Accomplishments to Date *To be presented by Economic Development (6137d) The Housing Element California Government Code Section 65583 requires the adoption of a housing element as one of seven mandatory elements of a general plan. A state certified housing element must address both the actual as well as the potential governmental and non-governmental constraints on "the maintenance, improvement, or development" of housing for all income levels. These constraints include building codes, land use controls, fees and exactions; the availability and price of land, financing, and the cost of construction. The element must contain an analysis of potential for rent-restricted, multifamily, low income housing units to convert to market rate housing, and a program for preserving or replacing those units. This analysis was added to the City's approved housing element via an amendment that was approved on November 16, 1992. Further, the housing element must identify a five year schedule of programs to achieve the goals and objectives contained within the document. These programs must address the following areas: Accessibility, adequate provision, adequate sites, housing and neighborhood preservation, and preservation of affordability. Failure to have a State certified housing element exposes the City to a potential loss of permit authority, land use regulation, and subdivision map approvals through judicial action. Additionally, a court could invalidate the City's general plan if the housing element is found to be technically out of compliance, or non certified. (6255d-4) AFFORDABLE HOUSING NEEDS - THRU 1994 Combined Housing Element Staff's Revised Family Income SCAG Goal Estimated Goal Programs Number Responsibility Funding Very Low 0-50% Orange County 984/units 650/units Single Room (SRO) 450 Private and/or Private with City Median Income (15.8%) (Rental) Non-Profit support of bonds ($26,100) (14.0%) Private with ,Family Units 200 Private and/or City/Agency (Density Bonus) Non-Profit Assistance Low 50-80% Orange County 1264/units 460/units "Granny Flats" 10 Private Private Median Income (20.3%) (Rental) Rehabilitation of Private/City CDBG ($38,000) (10%) Existing units, 250 Assistance 20% Set-a-side Funds Shared Equity Private and Private and City 200 City/Agency 20% Set-a-side Funds Density Bonus Assistance Moderate I 80-100% Orange County 1000/units Modified Devel. Private and Private and/or Median Income (Rental) Standards Ord. 1000 City/Agency City supported, ($41,760-$52,200) (21.0%) Tax Exempt Assistance Tax Exempt Multi-family Housing Bonds 1370/units bonds, Density Bonus Moderate II 100-120% Orange (22.0%) 800/units Privately financed, 800 Private and/or Private and/or County (for sale) Tax Exempt City/Agency City supported Median Income (17.0%) Financing Assistance Tax Exempt $52,200-$62,650 Shared Equity Bonds - 20% Set- Silent 2nd Deeds, a-side Funds Upper Above 120% 2610/units 1810/units Single Family 1810 Private Private Orange County (for sale) Residential Median Income (41.9%) (38.0%) ($62,650+) TOTALS: 6,228/units 4,720/units 4720/units 0454y City of Huntington Beach 1989 Housing Element Update 'Ali � w L. D 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 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 a CITY OF HUNTINGTON BEACH 1989 HOUSING ELEMENT UPDATE Adopted July 1990 Resolution No. 6146 CITY OF HUNTINGTON BEACH HOUSING ELEMENT UPDATE TABLE OF CONTENTS Page 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 1-2 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 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 5 Housing Element Program Summary 3-7 6 Rental Subsidy Needs of Lower Income Households 3-30 7 Lower Income Households to Receive Rental Subsidies 3-30 - 8 Units to be Assisted for Lower Income Households 3-31. 9 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 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 oit 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 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 L / 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 i 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 si.ngle-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 1 !- 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 C0( O! q tF i • � i r r j P� ♦ 'O(Ji � �rrr ♦ .lam yrl�Z� ••• r � f � S • .l ♦ r a •�+eado la,k Aupal r AREA 4 r I 1�c r� OS J► e ♦ :r ♦ ♦ AREA 3 A 11j,bo -PROPERTY `1. r BOLSA CHICA ' Ld'nrn Comps Sea Cliff Ceneylo6 of Cnunlry Club Plante 11Ci1C Cvr e...r ........'r... far—AREA 2 I N Hwy. CGAS I !,r I AREA 1 p A C F 1 C O C E A N 0 3436 K North scab In feel FIGURE T PREVIOUSLY CONSTRAINED LANDS SUITABLE FOR RESIDENTIAL DEVELOPMENT 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 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 ' - �„•J UP TO 6.5 DU/AC ILU UP TO 12.5 DU/AC �'�'�: --'I \ .LINEAR UP TO 18.0 DU/AC �• I - _ �:,'(� �� PARK / MWD, r: WETLANDSESHA :t�'/ -- F:. •r _ _ - _- ES H A / F 1• RE E �� -AC AG SUNiM R OPEN PAC - .. ( , LAND USE TYPE ACRES ,'.:':�.�"` \ ,_ -- -,-=,< - RESIDENTIAL 412.0 ',�..:-�\ \ ;'t•' =' � - N/c,LANDSiESHA/OPEN SPACE 1104.9 ;���r:•- �'\• ,I• - LWEAR PARK/ESHA 50.9 `' .\1\B' DES!GNA.=0 RCADWAYS 53.7 `:;.5,%'•�„:'M{+�� '`-__-� \ �./°�,. /. r• ^ _� �- A_� 1` / r FLGOD CONTROL CHANNEL 13.2 TOTAL 1935.c 6- a=%• -�'_ {r" �izr`' I - .- . ' WETLANDS 4. C / ! .I r ESHA / /� I. OPEN SPACE .' /• �':_' `Ia WETLANDS ESHA / OPEN SPACE l / wi, �3 ' ' �, •• 5- WETLANDS' .�. `�`f _-•� � 1' ESHA./ OPEN SPACE .:�•,..:t. I j' r ._. , .. LINEAR d/ .0 / PARK / — - + ESHA w ETLANOS / ESHA / OPEN SPACE I NON-NAVIGABLE :. OCEAN CONNECTION SOURCE: VALE SPECK TAYLOR. PACIFIC OCEAN. PACIFIC OCEAN rCtx K North. FIGURE 2 60LSA CHICA RESIDENTIAL,DEVF.IOPMENT 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 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 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 r 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 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. i 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 M' • 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 j 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 A � 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 Seacliff Partners C1TY BF - I July 29, 1993 Ji U N T 1 m C.T f,H, -ALIF. Mr. Howard Zelefsky, Planning Director JUL 30 10 37 ki Community Development Department 2000 Main Street Huntington Beach, CA 92648 Subject: Seacliff Partners' Affordable Housing Plan for Holly Seacliff Dear Howard: After reviewing the Request for City Council Action dated August 2, 1993 for the above item (F-3), I would like to call your attention to a number of typographical errors which apparently occurred during retyping of the staff report. On page 4 of Attachment 1, under B. Location, Type and Size of Affordable Units, a line has been left out. The second sentence should read: "the table sets forth the maximum possible number of units within each planning area. The ultimate mix of units to be built will be at the discretion of the Developer." On page 5, Table 1, the number 53 should be inserted in the Acreage column to the right of Planning Unit IV-4. On page 6, under 3. Units Constructed by:Others, the second sentence should read: "The affordable housing credit provisions of such contract or agreement shall be approved by the Director of Community Development prior to satisfaction of Developer's requirement. On page 7, in the paragraph below the phasing table, item b) should read: submit final tract map to the City within 2 years from tentative tract map approval: . . . . I believe these corrections accurately reflect the affordable housing plan as approved by the Planning Commission, and would appreciate your making these corrections to the document for the record. Very truly yours, William D. Holman Project Manager cc: Robert Franklin Tom Zanic Connie Brockway ❑ 520 Broa&.vay,Suite 100,Santa Monica.CA 90401 (310)394-3379 Fa.x i310)394-6872 1 Nlzitn�t-�tttte �OO� WttmttmOton geaei�. 18 ��1 1�.960 1351 F:!x 41 .4 i 0540 i Unemployment Levels Gt- 5 6.5%Jan. Housing Starts -12.8%Dec. ritten by Craig Doty March, 1991 �Q,Q CITY1� Santa Ana Garden Grove Anaheim Buena Park Orange Amount of 15%of price 10%of price with 15%of price 15%of price 10%of price )ollars & Silent 2nd or$30K max MCC or$10K to$25K max or$35K max 22.5K max old.Con- max W/0 MCC ?/ YOU for L % ;tters you Down PMT 5% 5% 5% 5% 10% l� ndicated Required buy our PMI/MMI mill...we Required Yes Yes Yes Yes Yes :fines, rel- , create a Gifts for 5% Yes on No No Yes Yes -.eels and down allowed FHA/VA your con- r %Charged 5% None it is an None it is an 5%simple 8%simple equity share prog* equity share prog* interest interest PMTS on None first None None None first None first 2 nd 5 Yrs 5 Yrs 5 Yrs Term of 2nd 20 Years 20 Years 30 Years 20 Years 15 Years for those Payback Amortized Equity Share Equity Share Amortized Amortized �e buyers. years 6 years 6 years 6 d a large thru 20 thru 20 thru 15 US to fund Use with Optional Optional Must use MCC not MCC not tion with MCC with MCC available available :s' "Silent prepayment 5%Yr 6 Call City 10%Yr 1-5 5%Yr 1 8%Yrs .ast month penalty 4%Yr 7 8%Yr 6 4%Yr 2 I-5 nny on the 3%Yr 8 6%Yr 7 3%Yr 3 our chart 2%Yr 9 4%Yr 8 2%Yr 4 fie Silent 1% Yr 10 Etc. I%Yr5 eral cities Property Target W/In Target W/In W/In ice to first Location areas only city limits areas only city limits city limits recorded Type of SFR/condo SFR DET SFR only SFR/condo SFR/condo ;t t.d. The property only :er is low, Type of Fixed or Fixed or no Fixed only Fixed or no Fixed or no vary from loan any arm neg arm neg arm neg arm the chart. Use MCC behind: 2 m FHA Yes Yes Yes No NO im buyers s VA Yes Yes Yes MCC MCC ent and Convent. Yes Yes Yes Program Program ncome per number of Max income per persons y age, re- 1 $41.280 $41.300 $41,200 $41,250 $41,250 eworking. 2 47.160 47,050 47,150 47,100 47,150 programs 3 53.040 53,050 52,050 53,000 53,050 is merely 4 58.920 56,456 58,900 58,900 58,900 oral loans 5 63,600 63,650 62,600 of funds. 6 68A00 68,350 66,300 >mbine the 7 73,100 69,950 pans. This 8 77,750 .73,650 i CHAFA. Wierd Limited Requirements Availability Subjective availability ition.This Availability:Call each city to insure availability every time you want to use it real estate lent to ex- Phone contact 667-2200 741-5140 533-8750 521-9900 771-2315 by section "ERN CITIES 17731 IRVINE BOULEVARD, SUITE 203 TUSTIN,CALIFORNIA 92680 • (714)730-0392 ►GE CORPORATION +{ xr 1 M .h t W l` Financial Requirements ■ Redevelopment Agencies must set aside 20% of tax increment for the low and moderate income housing fund -- "The Fund" ■ The Fund may be aggregated (more than 20% from some areas and less from others) R•i.3,.S.{, Sex,. ::i: .2, 333�,.3. 333311. • R - I �i► • a Private Production Housing ■ Fifteen percent of all privately produced housing in a project area must be affordable of these... ■ Forty percent must be affordable to very low income households. • Agency Production Housing ■ Thirty percent of Agency projects must be. affordable. ■ Fifty percent of these units must be affordable to very low income households. Replacement Housing ■ Demolished units occupied by low or moderate income households must be replaced one for one. ■ Seventy-five percent of replacement units must be for households of the same income catagory as those displaced. ■ Replacement units must be provided within four years of demolition but may be located anywhere in the city. yy 4 .9 I • • Covenants ■ All affordable units must remain so for "maximum feasible time", e.g. the length of the plan or life of the building. ■ Affordable means: ► 25% of income for low/very low income households ► 30-35% of income for moderate income households. Action 4 ■ Projects of three or fewer units may pay a fee in lieu of housing negotiable on a project-by-project basis. ■ Fee due prior to building permit. r w 4. Other Authorities ■ To further assist projects the Agency may undertake any program in the Housing Element. ■ Any project may also seek assistance through City's Affordable Housing Ordinance (pending). Replacement Requirement Units Low Very Low Main-Pier -102 -38 -13 Oakview 10 7 6 Huntington -1 0 -1 Center Talbert-Beach 87 491. 41 i Status of Inclusionary Housing Units Low & Low & Deficit or Proposed Low/Mod Low/Mod Surplus & Existing Required Produced Units Main-Pier 1,853 278 145 -133 Oakview 69 10 0 -10 Talbert-Beach 403 85 123 38 Yorktown-Lake 86 13 0 -13 Huntington 0 0 0 0 Center 9 t REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH HOUSING POLICY FEBRUARY, 1993 i AGENCY MISSION STATEMENT The California Health and Safety Code charges redevelopment agencies with renewing areas that are " . . . a serious physical, social, or economic burden on the community . . . " (Section 33030). For the Redevelopment Agency of the City of Huntington Beach it is more. It is the rebuilding and enhancement of the economic centers of the community to assure a prosperous future. It is provision of choice to the city's residents: choice in housing, shopping, • employment, in business or recreation. It is equal opportunity housing; by type of unit and tenure -for all income groups. It is forging a partnership with private enterprise and citizens at large to create and maintain a viable, vibrant community that participates fully in the economic future of the region while assuring the quality of life so prized by its residents. • REDEVELOPMENT AGENCY HOUSING POLICY Background.- The City of Huntington Beach began redevelopment involvement in 1982 and since has adopted five functioning redevelopment project areas. The five project areas are: 1. Huntington Center: adopted November 26, 1984 2. Oakview: adopted November 1, 1982 and amended July 5, 1989 3. Main-Pier: adopted September 20, 1982 and amended September 6, 1983 4. Talbert/Beach: adopted September 20, 1982 5. Yorktown/Lake: adopted September 20, 1982 Each of the project areas has an obligation to provide low and moderate income housing. That obligation stems from Redevelopment law which states: "The Legislature further finds and declares that a fundamental purpose of redevelopment is to expand the supply of low and moderate income housing, to expand employment opportunities for the jobless, underemployed, and low-income persons, and to provide an environment for • social, economic, and psychological growth and well-being for all citizens." State Law: Redevelopment Law regarding an Agency's role in the provision of affordable housing is very specific and demanding. The law contains four mandates: 1. Sections 33334.2. 33334.3 and 33334A These sections of Community Redevelopment Law mandate that 20% of the tax increment from the project area must be set aside in a separate Low and Moderate Income Housing Fund ("The Fund"). Interest earned on the Fund must be added to the fund as must any repayments of loans, advances or grants from the Fund. As of January, 1992, Agencies with more than one project area can aggregate the Fund dollars taking more than 20% from one area and less from another as long as the total dollars going into the Fund are equal to the required 20%. (Huntington Beach has chosen to aggregate its Fund). 2. Section 33413 (b)(2): This section mandates that 15% of all housing built (production units) in the project area be affordable to low and moderate income households and that 40% of the 15% be affordable to very low income households. • This requirement applies regardless of the project sponsor. I Production units must by law be built in the project area. The law goes on to say . that if an agency builds a project directly (such as Emerald Cove) then all of the units must be affordable to low and moderate income households. If the Agency assists a project then 30% of the project must be affordable and half of these units must be affordable to very low income households. Production units must remain affordable for the longest feasible time, but for not less than the period of the land use controls established in the redevelopment plan. In Huntington Beach an attempt is being made to have projects remain affordable for the life of the building. 3. Section 33413 (a): This section mandates that a redevelopment agency must replace all the low and moderate income housing units that are removed from a project area. Units occupied by households of other than low and moderate income need not be replaced. The demolished low and moderate income units must be replaced by an equal number of units that have an equal or greater number of bedrooms. In addition 75% of the replacement units must be in the same income category as the households relocated from those units. Replacement units may be built anywhere in the city. Replacement must be built within four years of demolition. Replacement units must remain affordable for the longest feasible time, but for not less than the period of the land use controls established in the redevelopment plan. In Huntington Beach an attempt is being made to have projects remain affordable for the life of the building. 4. Section 33413 (b)(4): This section mandates that each redevelopment agency adopt a plan to comply with the production housing requirements for each project area as set forth in 33413 (b)(1) and (2). The plan is to be reviewed and if necessary amended every five years in conjunction with the Housing Element cycle. The plan is to ensure that such agency production housing requirements are met every 10 years. If the production housing requirements are not met in the 10 year period the agency is mandated to meet the requirements yearly. In addition, Section 33413.5 mandates that prior to the execution of an agreement which would lead to the destruction or removal of low and moderate income dwelling units the agency shall adopt by resolution a Replacement Housing Plan for that project. Lastly, one entire section of the Annual Redevelopment Agency Report to the State Controller is devoted to reporting on Agency activities related to the provision of low and moderate income housing and the status of the Low and Moderate Income Housing Fund. • 2 REDEVELOPMENT AGENCY HOUSING POLICY GOALS AND PRIORITIES FOR THE EXPENDITURE OF HOUSING SET-ASIDE FUNDS GOALS: The City of Huntington Beach in its Housing Element adopted in July 1990 states three goals: 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. PRIORITIES: These goals are incorporated in this Redevelopment Agency Housing Policy and added hereto are the following priorities for the Agency's housing activities. • The Redevelopment Agency will comply with state law by providing all necessary replacement housing units within the required four years of the units' removal and by assuring the 15% production unit requirements every ten years (tables displaying the current production and replacement housing requirements of the Agency for each project area are attached). • The Agency will focus its efforts and the expenditure of its set-aside funds on the provision of housing for low and very low income (less than 80 percent of median) households within project areas, to the greatest extent feasible. • The Agency will rely on conditions placed on private projects to supply required . moderate income (above 80 percent of median) housing and will participate 3 financially in the provision of housing for these households only where previously committed or under special circumstances. • ACTIONS: To implement the goals of the Housing Element and Agency priorities the Agency will undertake the following actions. • Any project in which the Agency is a participant (e.g. assembly of land, provision of off-site improvements, etc.) shall meet its replacement and production housing requirements on-site, to the greatest extent feasible (the minimum project size to trigger the on-site production requirements is 3 units). • If on-site provision of the required units is infeasible, the project proponent may propose an off-site solution still within the specific project area, and such solution will be identified in detail at the time of approval of any Disposition and Development Agreement or Owner Participation Agreement. Demonstration of site control of the off-site location will be evidenced as part of the DDA/OPA. • Of the units provided whether on-site or off-site, forty percent (40%) shall be affordable to households of very low income and shall remain affordable for the maximum feasible time. • • Projects of 3 or fewer units may pay a fee to the redevelopment agency for each unit that would have been required. Such fee shall be negotiated with the Agency and shall be paid prior to the issuance of a building permit: To assist in accomplishing these actions, the Redevelopment Agency may undertake any program identified in the City's Housing Element of July 1990, as it may from time to time be amended. While the goals and policies herein are directed at housing projects constructed within redevelopment project areas and which benefit from the Redevelopment Agency Housing Fund, the city also provides a variety of development incentives for housing projects anywhere in the city including those in project areas. These development incentives will be described in the proposed Affordable Housing Ordinance which was under administrative review at the time of preparation of this agency policy. • 4 w Single Room Occupancy (SRO) Units On May 6, 1991, Huntington Beach became the first city in Orange County to adopt an SRO ordinance. The City's ordinance allows SRO living units in C2 and C4 districts, and also in the North Huntington Center Specific Plan. Further, the ordinance made no amendments to the City's building and housing codes to help ensure safe, quality SRO developments. No SRO developments have been approved since the ordinance was approved, however,the City now has a formal process for evaluating any potential SRO proposals that enter the application/entitlement process. (6255d-8) 9220.14(f)(5)(i )--9220.15(a)(1 ) (i ) A three (3) foot wide planter (inside dimension) along interior property lines shall be provided, except at vehicular circulation openings. Additional landscaping may be required to effectively screen service bays from surrounding properties . (ii ) A six hundred (600) square foot planter with a minimum dimension of twenty (20) feet shall be provided at the corner of intersecting streets. (iii) A total of seventy (70) square feet of planting area shall be located adjacent to and on the streetside of the main building. (g) Nonconforming_ service stations. •Plans to substantially alter or modernize existing service stations shall be subject to the approval of a new conditional use permit and conformance with all current code requirements. The reduced requirements outlined below shall apply to existing nonconforming service stations which shall meet all such standards by December 16, 1977. (1 ) A minimum of six (6Y) percent of the site shall be landscaped. Such plans shall conform to all applicable provisions of Article 960, Off-street Parking and Landscaping. (2) Where feasible, a minimum three (3) foot wide landscape planter (inside dimension) shall be provided along streetside property lines. (3) A landscaped planter shall be provided at the corner of the two intersecting streets . (4) Where regulations for the placement of planters would impede circulation or access, landscaping shall be placed elsewhere on the property to meet the minimum requirement. (5) Trees shall be provided for the planters at a rate of one thirty inch box tree per forty-five (45) feet (or fraction thereof) of planter length. (6) All freestanding and attached signs shall be altered or removed in order to comply with the provisions of the sign code. Service stations which were in conformance with all sign provisions in effect on June 16, 1979 shall not be required to come into conformance with any newly adopted standards. Service station signs which were not in conformance with applicable_ requirements on this date shall be required to be brought into conformance with all provisions of the sign code as it exists or may hereinafter -be amended. (2829-5/86) 9220.15 Single room occupancy/Living units. Single room occupancy/Living units shall comply with the following requirements : (3109-7/91 ) (a) General provisions . (3109-7/91 ) (1 ) All projects shall comply with the most recently adopted City Building, Plumbing, Mechanical , Electrical , Fire, and Housing Codes . (3109-7/91 ) 7/91 9220. 15(a)(2)--9220. 15(b)(4)(1 ) (2) No more than one (1 ) person shall be permitted to reside in any unit which is less than two hundred twenty (220) square feet in size. (3109-7/91 ) (3) No more than two (2) persons shall be permitted to reside in any unit, excluding the manager' s unit. (3109-7/91 ) (4) A Management Plan shall be submitted for review and approval with the Conditional Use Permit (CUP) application. The Management Plan shall contain management policies, operations, emergency .procedures, security program including video cameras monitoring, building access points, rental procedures and proposed rates, maintenance. plans, and staffing needs , and tenant mix, selection and regulations. . (3109-7/91 ) (5) An on-site, twenty-four (24) hour manager is requried in every SRO project. In addition, a manager' s unit shall be provided which shall be designed as a complete residential unit, and be a minimum of 220 square feet in size. (3109-7/91 ) (6) Rental procedures shall allow for both weekly and monthly tenancies only; deposit requirements shall be specified for each type of tenancy. (3109-7/91 ) (7) All units within SRO projects shall be restricted to very low and low income individuals as defined by the City' s housing element, with the exception of the twenty-four (24) hour manager. (3109-7/91 ) (8) Each SRO project shall be subject to annual review by the City which includes the review of management services. The SRO project owner shall be responsible for filing an annual report to the Department of Community Development which includes the range of monthly rents, the monthly income of residents,. occupancy rates, and the number of vehicles owned by residents. (3109-7/91 ) (9) The Planning Commission or City Council may revoke the Conditional Use Permit if any violation of conditions or any of the adopted Huntington Beach Codes occurs. (3109-7/91 ) (b) Unit requirements . (3109-7/91 ) (1 ) Minimum unit size shall be one hundred seventy (170) square feet. (3109-7/91 ) (2) Maximum unit size shall be four hundred (400) square feet. (3109-7/91 ) (3) The average size of all living units within the project shall not exceed two hundred seventy five (275) square feet. (3109-7/91 ) (4) Each unit shall contain a kitchen and bathroom. (3109-7/91 ) (i ) Kitchens shall contain a sink with garbage disposal , counter top (minimum 16" x 24") , refrigerator, and stove or microwave oven. (3109-7/91 ) 7/91 9220. 15(b)(4)(ii )--9220. 15(c)(7) (ii ) If stoves are not provided in each unit, then stoves shall be provided in a common kitchen area(s) . (3109-7/91) (iii ) Bathrooms shall contain a lavatory, toilet, and shower or bathtub. (3109-7/91 ) (5) Each unit shall have a minimum forty—eight (48) cubic feet of closet/storage space. (3109-7/91 ) (c) Project requirements. (3109-7/91 ) (1 ) Common recreational space shall be provided in each project as follows: (3109-7/91 ) (i ) Minimum common recreational space shall be four hundred (400) square feet. (3109-7/91 ) (ii ) For projects exceeding thirty (30) units in size, additional square footage is required as follows: (3109-7/91) Units less than 220 square feet — 10 square feet/unit over 30 .(3109-7/91 ) Units 220 square feet of greater — 15 square feet/unit over 30 (3109-7/91 ) (iii ) Common recreational space may be indoor or outdoor provided there is at least forty (40%) percent allotted toward indoor space and forty (40%) percent outdoor space; the balance may be either indoors or outdoors. (3109-7/91 ) (iv) Common recreation space may be in separate areas provided each space is not less than two hundred (200) square feet in size and has no less than a ten (10) foot dimension. (3109-7/91 ) (2) A- single controlled entryway for routine ingress and egress shall be situated adjacent to and in full view of the manager' s desk. (3109-7/91 ) (3) A mailbox shall be provided for each unit. (3109-7/91 ) (4) Handicap access facilities shall be as required by applicable state or local law. (3109-7/91 ) (5) At least one handicapped—accessible unit shall be required for every twenty (20) units. (3109-7/91 ) _ (6) Laundry facilities shall be provided in a separate room in a location near the common indoor recreational space. Washers and dryers may be coin operated. (3109-7/91 ) (7) A cleaning supply storeroom and/or utility closet with at least one (1 ) laundry tub with hot and cold water on every floor shall be provided. (3109-7/91 ) 7/91 9220.15(c)(8)--9220.15(c)(12) (8) Storage Lockers (3109-7/91 ) (i ) Storage lockers shall be provided in a secured area. (3109-7/91 ) (ii ) The cumulative total of locker space shall be no less than a ratio of ten (10) cubic feet per unit. (3109-7/91 ) (9) All common indoor space areas shall have posted in a conspicuous location a notice from the City' s Department of Community Development regarding contact procedures to investigate housing code violations. (3109-7/91 ) (10) Bicycle stalls shall be provided at a minimum of one (1 ) stall per ten (10) units .in a secured and enclosed area. (3109-7/91) (11) Trash disposal chutes as well as a centralized trash area shall be provided on all multi-story project. (12) A minimum of two (2) pay telephones shall be provided in the lobby area. The telephone service shall only allow outgoing calls. (3109-7/91 ) 7/91 SITE ANGLE REQUIREMENTS DIAGRAM A R1.1 t { 280 28 0 0 80 ti ( L t= 1 i 1. j1 1 .t .L. f. tt tI 4 t 1 1 1 ' t •: 1L 4: 1 I{ 1 . i , .� J1 } a F i t t . i .J, a 0 280 .. � 50NOTE 7: TYPIC41— LOTS IN COMMERCIAL ,.�:..:.....:.......... ... ...J...... .. . , REEICENTIAS_ DISTRICTS ° t:: : : ........... ... ..............:: DISTRICT I.EHCHANDISE LESS THAN _... .'., ' 6 FT. IN HEIGHT. � 25 MERCHANDISE OVER 6FT. IN HEIGHT. "° 'S• BUILDING ENCROACHMENT __ t INTO THE REQUIRED SETBACK (25 FT. MAXINIUM) Housing Survey In early November of 1992, the Community Development Department undertook a survey of all single and multifamily residential housing in the City. A cooperative effort between the code enforcement section and the housing division, the intent of the survey is to assess the exterior condition of the housing stock. Among the items rated on the survey sheet are the condition of the paint or stucco, landscaping, roof, driveway and fencing, with point values being assigned to the relative condition of each item being assessed. Individual properties are then categorized as "good," "fair," or "poor" based on the total number of points scored. Once the survey is completed, efforts can be concentrated in focused neighborhoods where the needs appear to be the greatest. New CDBG enhancement areas could be identified more easily using the available survey data, and other funding sources might be directed to these areas as well. To date, approximately 11,000 properties have been surveyed. (6255d-6) Dia A:. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH INCLUSIONARY HOUSING COMPLIANCE PLAN CITY OF HUH11BG10H f[l(H FEBRUARY 20, 1993 DRAFIT FORWARD Redevelopment law requires redevelopment agencies to reserve twenty percent of the tax increment collected annually for the purpose of affordable housing. For. some years redevelopment agencies have been required to provide fifteen percent of the units in . a completed project area as "affordable" and to replace any units demolished through redevelopment that were occupied by lower income households. Recently, legislation approved and incorporated into The Health and Safety Code requires redevelopment agencies to provide a plan through which accomplishment of these housing obligations can be achieved. Such a plan is to be updated every five years in conjunction with the jurisdiction's housing element. Here follows the Inclusionary Housing Compliance Plan for the Redevelopment Agency of the City of Huntington Beach. DRAFT February 20, 1993 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH INCLUSIONARY HOUSING COMPLIANCE PLAN TCS Redevelopment Associates 51 Southwind Aliso Viejo, CA 92656 (714) 362-3842 DRAFT INCLUSIONARY HOUSING COMPLIANCE PLAN FOR THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH Section 33413 (b) (1) of the Health and Safety Codel requires that 30% of all new or rehabilitated housing units developed by the redevelopment agency (the "Agency") must be available at affordable housing cost to low or moderate income households, 50% of which must . be available at affordable housing cost to very low income households. Section 33413 (b) (2) requires that 15% of all new or rehabilitated housing units developed within a project area by entities or persons other than the Agency be available at affordable housing cost to low or moderate income households, 40% of which .must be available at affordable housing cost to very low income households. The collective requirements of both 33413 (b) (1) and (2) are referred to herein as the "Inclusionary Housing Requirement" . Section 33413 (c) requires that all units rehabilitated, developed, or constructed in compliance with the Inclusionary Housing Requirement remain affordable to each respective income level for the "longest feasible time" , but in no event less than the period of the land use controls established by the applicable redevelopment plan. This provision is to be enforced pursuant to Section 33334 . 3 (f) which requires recorded covenants running with the land. Effective January 1, 1992, Section 33413 (b) (4) requires the Agency to adopt a plan for each project area to ensure compliance with the Inclusionary Housing .Requirement every 10 years. The plan must be consistent with the housing element and shall be reviewed and amended, if necessary, at least every five years in conjunction with the housing element. The following inclusionary housing compliance plan has been prepared and will be submitted to the State of California Department of Housing and Community Development in accordance with Health and Safety Code Section 33413 (b) (4) . lAll citations herein are to the Health and Safety Code unless otherwise noted. UKAFT MAIN PIER REDEVELOPMENT PROJECT The Main Pier Redevelopment Project has a current deficit of 118 low-to-moderate income units and 47 very low income units. Upon completion of the proposed projects, the deficit will be 133 low- to-moderate income units, and 1 very low income unit. The Agency estimates that it will neither develop nor rehabilitate any residential units during the next 5 years. Estimates of new or rehabilitated residential units to be developed by a person or entity other than the Agency within this project area during the next 5 years, and the percentage of such units to be restricted with affordability covenants are set forth below. Description of Proposed Projects Third Block West: The Agency has approved a disposition and development agreement with Newcomb-Tillotson Development, Inc. for the Third Block West project. This project will include 68 condominium units, 33 of which will be restricted to low-to- moderate income households. In addition to housing, the developer will be providing both commercial and office uses within the project. Construction should begin in 1993 . Waterfront Residential: Negotiations continue with regard to the amendment of Phase II of the Waterfront Project. Included within Phase II will be 337 residential units; upon completion of the Waterfront Project, 639 residential units will have been constructed. The Agency is negotiating to obtain 112 off-site housing units restricted to low-to-moderate income households (see Beach & Atlanta Project) . Main Pier, Phase II The Agency is currently considering a disposition and development agreement which will provide for approximately 82 residential units, none of which will be restricted with affordability covenants. Beach & Atlanta: Beach and Atlanta development goals include 280 residential units. The Agency is currently negotiating to obtain very low income restrictions on 112 units in fulfillment of the Waterfront Residential Project inclusionary housing obligation. DRAFT OARVIEW REDEVELOPMENT PROJECT The Oakview Redevelopment Project has a deficit of 10 low-to- moderate income units and 4 very low income units. The Agency is currently negotiating for the rehabilitation of 13 units within this project area. However, these units are proposed for replacement housing purposes and are therefore not being considered in this report. The Agency estimates that there will be no other new or rehabilitated residential units developed by a person or entity other than the Agency within this project area during the next 5 years. With available residentially-zoned land limited to one parcel of approximately .2 acres, there is a maximum potential of 3 newly constructed units within this project area. The Agency will attempt to obtain long-term covenants in compliance with Section 33413 (c) on both existing and proposed housing within the project area. DRAFT TALBERT BEACH REDEVELOPMENT PROJECT The Talbert Beach Project is meeting its Inclusionary Housing Requirement, and will continue to be in compliance upon completion of the proposed housing project described below. The Agency estimates that it will neither develop nor rehabilitate any residential units during the next 5 years. Estimates of new or rehabilitated residential units to be developed by a person or entity other than the Agency within this project area during the next 5 years, and the percentage of such units to be restricted with affordability covenants are set forth below. Proposed Proiects Seaview village: The Agency has completed negotiations with Seaview Enterprises, 25 of the proposed 88 units will be restricted for moderate income families. Y"" RAFT YORKTOWN-LAKE REDEVELOPMENT PROJECT The Yorktown-Lake Project has a deficit of 13 low-to-moderate income units and 5 very low income units. The Agency estimates there will be no new or rehabilitated residential units developed by the Agency or a person or entity other than the Agency within this project area during the next 5 years. As there is no residentially zoned vacant_ land available within the Yorktown- Lake Project, the Agency is contemplating a plan amendment or merger of project areas to incorporate residentially-zoned land into this project area. The Agency will then attempt to obtain long-term covenants in compliance with Section 33413 (c) on both existing and proposed housing within the newly incorporated area. I HUNTINGTON CENTER REDEVELOPMENT PROJECT There is no residentially zoned land within the Huntington Center Project Area. 3/1' • TABLE 1 DRAP"T REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH STATUS OF INCLUSIONARY HOUSING REQUIREMENT December, 1992 EXISTING & PROPOSED UNITS BUILT/REHABI- LITATED SINCE PLAN REQ'D [RESTRICTED] <DEFICIT>/SURPLUS ADOPTION Low/Mod Very Low Low/Mod . Very Low ------------------------------------------7------------------------------------------------ MAIN PIER Existing 784 118 [ 0) 47 [ 0] <118> <47> Proposed 1, 069 160 (1451 64 [1121 < 15> 48 TOTAL 1, 853 .278 (145] 111 (112] <133> 1 OARVIEWI Existing 69 10 [ 0) 4 [ 0] < 10> < 4> TALBERT BEACH Existing Non-Agency 151 23 ( 0] 9 [ 0) < 23> < 9> Existing Agency 164 49 f 981 25 j 661 49 41 Total Existing 315 72 [ 98) 34 [ 66] 26 32 Proposed 88 13 [ 25) 5 ( 0) 12 < 5> TOTAL 403 85 (123] 39 [ 66] 38 27 YORRTOWN-LARE2 Existing 86 13 [ 0] 5 [ 0] <. 13> < 5> HUNTINGTON CENTER 0 0 [ 0) 0, [ O] 0 0 I 1There are no proposed housing projects; however, the Agency is considering the rehabilitation of 13 units for replacement housing purposes (see Oakview Redevelopment Project summary) . 2No proposed housing projects. f DRAr • TABLE 2 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH INVENTORY OF HOUSING PROJECTS December, 1992 TOTAL RESTRICTED UNITS EXPIRATION OF UNITS Low/Mod Very Low COVENANTS EXISTING PROJECTS Main Pier Huntington Pier Colony 130 0 0 N/A Town Square 89 0 0 N/A Huntington Bay Shore 159 0 0 N/A Villas Del Mar 64 0 0 N/A Breakersl 342 68 0 1999 Oakview Ash Street 20 0 0 N/A Cypress Avenue 3 0 0 N/A Elm Street 30 0 0 N/A Koledo Lane 16 0 0 N/A Talbert Beach. Windward Cove 96 0 0 N/A Capewoods 55 0 0 N/A Emerald Cove2 164 98 66 Perpetuity Yorktown-Lake Huntington Classics 86 0 0 N/A PROPOSED PROJECTS3 Main Pier Third Block West 68 33 0 N/A Waterfront 639 0 0 N/A Main Pier, Phase II 82 0 0 N/A Beach & Atlanta 280 112 112 N/A Talbert Beach Seaview Village 88 25 0 N/A lRestricted unite were not counted as inclusionary units due to length of covenants. 2This project was developed by the Agency. 3Agency intends that covenants on proposed projects will be for the life of the plan. 1, ,n44tb NbSoa►aeb Mfs 3-"-53 • City of Huntington Beach HOLD To 00 BUSIOESS 10 THE CITY OF HUOTIOGTOO 0 1 0 C H BUSI0ESS HSSISTHOCE C H I C H I I S T ■ BUSIOESS EHPHOSIOO ■ BUSIOESS STOOT - UP ■ 1993 - 1994 TABLE O C)NTENT� .. Page No. WELCOME LETTER FROM THE MAYOR ........................................ i i INTRODUCTION: GETTING DOWN TO BUSINESS ...........................ii HOW TO USE THIS GUIDE...........................................................ii i WHERE TO BEGIN.....................................................................iii IF YOU GET LOST.....................................................................iii BUSINESS.-ASSISTANCE CHECK LIST ............................................ 1 f F (Alphabetical Listing) Business Start-Ups and Expansion New Construction, Facility Remodel and Additions HOW TO DO BUSINESS IN THE CITY OF HUNTINGTON BEACH.................................................. 10 (Detailed Information) Business Start-Ups and Expansion New Construction, Facility Remodel and Additions PERMITS BY DEPARTMENT/AGENCY ......................................... 32 RESOURCES FOR ENTREPRENEURS............................................ 35 CITY OF HUNTINGTON BEACH MAP .......................................... 45 Area Location Map Civic Center Location Map I MAYOR Grace Winchell City of .M aztington Beaeh MAYOR PRO TEMPORE • P. O. BOX 190 2000 MAIN STREET CALIFORNIA 92648 LindaMoulton-Patterson COUNCILMEMBERS HUNTINGTON BEACH Ralph Bauer Victor Leipzig Earle Robitaille Jim Silva Dave Sullivan April, 1993 Dear Entrepreneur: The City of Huntington Beach welcomes you to our business community. We are proud of our vibrant, friendly, and diverse city. In order to assist with existing business expansion and the establishment of new businesses, the City's Economic Development Department, in cooperation with all city departments, has produced this Business Assistance Check List. The Check List is designed to serve as a reference to guide you through the City's business permitting process. It also contains information on other resources available in the City of Huntington Beach and surrounding area. The future of the Huntington "Beach economy depends on the growth of business activity to provide local employment opportunities which, in turn, strengthen our tax base and ability to continue to provide quality services. The City recognizes the importance of business for both community employment and economic stability. Our goal is to work closely with you to develop a positive and cooperative relationship in order to provide quality assistance as your business expands and as your needs change. On behalf of the City Council,welcome to Huntington Beach! Sincerely, Grace Winchell Mayor TELEPHONE (714) 536-5553 .. .......... ::.:.::.:::.. .:: .........GET1` NG DOWN TQ BUSINESS: ...::.;.. ................. ..,. The City of Huntington Beach is pleased to have your business as a part of our community. The Business Assistance Check List is designed to help you establish a new business in town or expand an existing business. If you are interested in starting a business, this Check List will help answer questions regarding the permits and procedures you will need to follow in the City of Huntington Beach. Only those Federal, State, County and local permits typically needed to do business in the City are listed. An easy way to determine whether your site is in the city limits is to check a road map or the City's official maps. If you plan to operate your business in an unincorporated area of the County, this Check List does not provide a comprehensive list of permits. Please note that this Business Assistance Check List is provided as a public service to assist those persons interested in establishing or conducting business in the City of Huntington Beach. It is not warranted to be all inclusive. Permitting procedures and fee changes do occur. Any errors or omissions will not relieve the business owner of the responsibility, obligation or liability in fulfilling all legal requirements. -.:..... ..:, " `� USE 'GCS GUIDE The permits you need will depend upon the type of business you plan to operate. Everyone should read the section titled "Business Start-ups and Expansion". If you will be constructing your own building or changing an existing facility, you should also read the section titled "New Construction, Facility Re-Models and Additions". The Business Assistance Check List provides a quick reference to all permits and procedures described in this brochure. Carefully read the description of each permit to help you determine the permits that are applicable to your business and the documentation you need to obtain each permit. Chances are you will not need every permit listed. For detailed information on individual permits, contact the department which issues the permit. The fees listed are subject to change, but each respective department or agency will be able to give you the most current applicable fee schedules. As a general guide, all permits require payment of fees. Therefore, don't forget your checkbook--it will save you time and frustration. Although each business venture is unique, you may find it helpful to inquire with each department issuing you a permit regarding an approximate time table. Many times you can save both time and money by processing your permits simultaneously. As with anything, proper planning and research will help you eliminate many problems before they arise. If you are using outside professionals (such as architects, engineers, consultants, etc.) to assist you in your business project, the extra effort you expend to hire highly qualified people, experienced in successfully processing projects in Huntington Beach, will save you time and money in the long run. WHERE T Most businesses only require a City business license, zoning approval and Certificate of Occupancy to start operating in the City of Huntington Beach. However, other permits and reviews may be necessary and detailed information has been included in this Check List. Before applying for any of the permits outlined herein, you should contact the following Huntington Beach departments/divisions: 1. City Treasurer's Office (1st Floor) for business license application (see page 11 for more information) and; 2. Community Development Department's Zoning Counter (3rd Floor) to make sure that your proposed business/service is consistent with the Zoning Code (see page 25) and; 3. Community Development Department's Building Counter (3rd Floor) to apply for building permits and/or Certificate of Occupancy (see page 12). If there are any other requirements or permits necessary, you will be advised when you contact these three departments/divisions. It is our wish that you have a successful and properous business in the City of Huntington Beach. IF YOLJ SET LAST.. .°:» ° .<'`' ::... ....... .:::: >:..... The City of Huntington Beach offers friendly business advice through our "How to Turn Red Tape into Red Carpet" program. This program is our commitment to work with the business community to get you operating quickly with the least amount of red tape. A Business Development Team has been formed representing most city departments. These individuals are available to assist you. For more information please contact our Economic Development Department, Business Development Division at (714) 536-5542. iii � BUSINESS ASSISTANCE CHECK LIST .. . BUSINESS START [JPS ANTIS LPISTON PERMIT - DEPARTMENT AGENCY PAGE Air South Coast Air Quality Management 10 Quality Permit District 21865 E. Copley Drive Diamond Bar, CA 91765-4182 (909) 396-2000 State of California 10 Alcoholic Beverage License Alcohol Beverage Control Dept. Santa Ana District Office 28 Civic Center Plaza,Rm.369 Santa Ana, CA 92701 (714) 558-4101 Community Development Dept. Planning Division Huntington Beach Civic Center 3rd Floor (714) 536-5271 Community Development Dept. 11 Building Permit Huntington Beach Civic Center 3rd Floor (714) 536-5271 (Planning) (714) 536-5241 (Building) City Treasurer's Office 11 Business License Business License Division Huntington Beach Civic Center 1st Floor (714) 536-5267 ❑Certificate of Occupancy Community Development Dept. 12 Huntington Beach Civic Center 3rd Floor (714) 536-5241 (Building) (714) 536-5271 (Planning) ❑Coastal Development Community Development Dept. 13 Planning Division Permit Huntington Beach Civic Center 3rd Floor (714) 536-5271 1 ❑Conditional Use Permit Community Development Dept. 13 Planning Division Huntington Beach Civic Center 3rd Floor (714) 536-5271 State of California Employment 13 Employer Registration Development Department Employment Tax District Office 1855 Katella, Suite 100 Orange, CA.92613 .(714) 288-2600 Public Works Department 14 Encroachment Permit Huntington Beach Civic Center 1st Floor (714)536-5431 Fire Department 5th Floor (714) 536-5411 Community Development Dept. 14 Entertainment Permit Planning Division Huntington Beach Civic Center 3rd Floor (714) 536-5271 Police Department Huntington Beach Civic Center Police Building (714) 536-5992 ❑Facility Use Permit Community Services Department 14 Huntington Beach Civic Center 5th Floor (714) 536-5486 County Clerk's Office 15 Fictitious Business Name Old County Courthouse Statement 211 W. Santa Ana Blvd. 1st Fl. Santa Ana, CA 92701 (714) 834-4551 or 834-2200 ❑Filming Permit Community Services Department 15 Huntington Beach Civic Center - 5th Floor (714) 536-5486 (City Property) (714) 536-5281 (City Beaches) 2 Fire Department 15 Fire Code Permit Huntington Beach Civic Center 5th Floor (714) 536-5411 Fire Department 17 Hazardous Materials Petro Chem Office Disclosure Huntington Beach Civic Center 5th Floor (714) 536-5676 or 536-5411 County of Orange Health Care Agency 17 ❑Health Permit Public Health Services/ Environmental Health Division 2009 E. Edinger Ave. Santa Ana, CA 92705 (714) 667-3737 City Treasurer's Office 18 Home Occupation Permit Huntington Beach Civic Center Including State Regulated 1st Floor Occupations (714) 536-5267 Community Development Department Planning Division Huntington Beach Civic Center 3rd Floor (714) 536-5271 Fire Department Huntington Beach Civic Center 5th Floor (714) 536-5411 City Clerk's Office 19 Huntington Beach Huntington Beach Civic Center Ordinance 2nd Floor Code and Municipal Code (714) 536-5227 Code Enforcement Community Development Department Planning Division/Code Enforcement Huntington Beach Civic Center 3rd Floor (714) 536-5271 Internal Revenue Service 19 Income Tax, Federal (800) 829-1040 3 ❑Income Tax, State State Franchise Tax Board 20 Corporate Income Tax District Office 600 Santa Ana Blvd. Santa Ana, CA 92701 (800) 852-5711 Administrative Services Department 20 Insurance Liability, Huntington Beach Civic Center Workers' Risk Management Division,Lower Level Compensation and Bond (714)536-5234 Requirements City Treasurer's Office Huntington Beach Civic Center 1st Floor (714) 536-5267 Community Development Department Planning Division Huntington Beach Civic Center 3rd Floor (714) 536-5241 Public Works Department Huntington Beach Civic Center 1st Floor (714) 536-5441 Community Development Department 23 Outdoor Event Permit, planning Division (Temporary-Private Huntington Beach Civic Center Property) 3rd Floor (714) 536-5271 4 City Treasurer's Office 21 Seasonal Sales Permit Business License Division Huntington Beach Civic Center 1st Floor (714) 536-5267 Community Development Department Planning Division,3rd Floor Huntington Beach Civic Center (714) 536-5271 Fire Department Huntington Beach Civic Center 5th Floor (714) 536-5411 Public Works Department Huntington Beach Civic Center 1st Floor (714) 536-5431 ❑Seller's Permit State Board of Equalization 21 28 Civic Center Plaza, Room 239 Sales and Use Tax Permit Santa Ana, CA 92701 (714) 558-4051 ❑Sign Permit Community Development Department 22 Planning Division Huntington Beach Civic Center 3rd Floor (714) 536-5271 Community Development Department 24 Sign Permit (Temporary) Planning Division Huntington Beach Civic Center 3rd Floor (714) 536-5271 City Clerk's Office 22 Special Permits to Operate Huntington Beach Civic Center a Business 2nd Floor (714) 536-5227 Community Development Department 23 Special Use Permits Huntington Beach Civic Center (Limited Time Event) Planning Division, 3rd Floor (714) 536-5271 Community Services Department Moorhouse Headquarters 103 Pacific Coast Hwy. Huntington Beach, CA 92648 (714) 536-5281 5 Community Services Department 23 Specific Event Permits Moorhouse Headquarters (Public Property) 103 Pacific Coast Hwy. Huntington Beach, CA 92648 (714)536-5281 Public Works Department 24 Transportation Permit Huntington Beach Civic Center 1st Floor (714)536-5431 ❑ Public Works Department 24 Trash Bin Permit Huntington Beach Civic Center 1st Floor (714) 536-5431 Underground Storage Fire Department 24 Huntington Beach Civic Center Tanks 5th Floor (714) 536-5411 County of Orange Health Care Agency Environmental Health Department 2009 E. Edinger Santa Ana, CA 92705 (714) 667-3700 County of Orange 25 Weights and Measures Weights and Measures Device 1010 S. Harbor Blvd. Registration Anaheim, CA 92805 (714)447-7100 Zoning Approval Community Development Department 23 Huntington Beach Civic Center Planning Division,3rd Floor (714)536-5271 6 ...... �7C rF^ t�t�r T .......................................... t�Ar y X� l r`Ot`�.7 F r �Y. MODEL �R7 PERMIT:' DEPARTMENT OR AGENCY PAGE ❑Building Plan Check Community Development Dept. 26 and Permits Huntington Beach Civic Center 3rd Floor (714) 536-5241 Public Works Dept. Huntington Beach Civic Center 1st Floor (714) 536-5431 Fire Department Huntington Beach Civic Center 5th Floor (714) 536-5411 Community Development Dept. 26 Certificate of Occupancy Building Division Huntington Beach Civic Center 3rd Floor (714) 536-5241 Coastal Development Permit Community Development Dept. 27 Planning Division Huntington Beach Civic Center 3rd Floor (714) 536-5271 ❑Contractor Business License City Treasurer's Office 27 Business License Division (Subcontractors) Huntington Beach Civic Center 1st Floor (714) 536-5267 Community Development Dept. 28 ❑Design Review Planning Division Huntington Beach Civic Center 3rd Floor (714) 536-5271 7 Community Development Dept. 28 Environmental Assessment Planning Division Huntington Beach Civic Center 3rd Floor (714) 536-5271 County of Orange 28 Food Related Businesses Health Care Agency and Plan Check Environmental Health Division 2009 E. Edinger Ave. Santa Ana, CA 92705 (714) 667-3737 Public Works Department 29 Grading Permit Huntington Beach Civic Center 1st Floor (714) 536-5431 Fire Department 29 Oil Related Property Huntington Beach Civic Center 5th Floor (714) 536-5676 or 536-5411 ❑Parcel Map Community Development Dept. 30 Planning Division Huntington Beach Civic Center 3rd Floor (714) 536-5271 Fire Department 30 LI Public Assemblies, Flammable Huntington Beach Civic Center and Hazardous Materials 5th Floor Occupancies (714) 536-5411 Economic Development Department 30 Redevelopment Projects Huntington Beach Civic Center 5th Floor (714) 536-5582 ❑Stockpile Permit Public Works Department 31 Huntington Beach Civic Center 1st Floor (714) 536-5431 Community Development Department 31 Zoning Approval Huntington Beach Civic Center 3rd Floor (714) 536-5271 8 i V PERMITS BY 32 DEPARTMENT/ AGENCY V RESOURCES FOR THE 35 ENTREPRENEUR V CITY OF HUNTINGTON 45 BEACH MAPS Civic Center Address: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 (Corner of Yorktown Avenue) Most City Departments are open 8:00 a.m. to 5:00 p.m., Monday through Friday. Some may have extended hours and emergency telephone numbers. Check with each department. i You are responsible for obtaining all the appropriate permits and licenses necessary to conduct business in the City of Huntington Beach. 9 HOW TO DO BUSINESS IN HUNTINGTON BEACH ... BUI - ..: ' : `:: : :: 1 AIR QUALITY PERMIT South Coast Air Quality Management District 21865 E. Copley Drive Diamond Bar, CA 91765-4182 (909) 396-2000 Air Quality Permits are required for certain businesses. The South Coast Air Quality Management District (AQMD)oversees air pollution created by certain types of businesses such as auto body shops, cleaners, service stations, restaurants with char broilers, etc. Neither building permits nor Certificates of Occupancy for certain construction activities and uses can be issued until Air Quality Management District clearance is received. The City's Community Development Department, on the third floor of City Hall, can let you know if you will need AQMD approval. A check list is provided on the Certificate of Occupancy form. 2. 'ALCOHOLIC BEVERAGE LICENSE State Department of Alcoholic Beverage Control 28 Civic Center Plaza, Room 369 Santa Ana, CA 92701 (714) 558-4101 Community Development Department Planning Division, 3rd Floor (714)536-5271 If you want to sell alcoholic beverages from your business, you must obtain an Alcoholic Beverage License from the State of California. The type of license you obtain depends on whether you sell alcoholic beverages for consumption off the premises(such as grocery store or liquor store), or for consumption on the premises(such as restaurant or bar). The initial licensing fee ranges from$50 to $20,000. The license must be renewed annually; the cost will vary according to the type of license. The processing time for Alcoholic Beverage Control Department(ABC)averages 45-60 days. For details regarding proper documentation, contact the Santa Ana District Office of the Department of Alcoholic Beverage Control. Due to the high volume of permit requests, you must call for an appointment to begin the application process. You should check with the Community Development Department, Planning Division, for zoning clearance and possible Conditional Use Permit requirements. For special temporary events, you also must obtain a temporary permit from the Department of Alcoholic Beverage Control. 10 3. BUILDING:PERMITS Community Development Department 3rd Floor (714)536-5241 (Building) (714) 536-5271 (Planning) A Building Permit is required in most cases when you plan to make some cosmetic or physical changes to the interior or exterior of the building you plan to occupy. (A building permit is also required for construction of swimming pools, spas, walls, fences, signs etc.) Electrical, plumbing, and/or mechanical permits may be required. When required, plans are to be submitted for a Plan Check and a Building Permit issued before starting any construction or remodeling. Plan Check includes a review of your building proposal for conformance with the Zoning Code, Uniform Building Code and applicable City codes. Plan Check can be performed over the counter for minor projects. Major projects require plans to be submitted for in-depth review. Contractors are required to have a City Business License, appropriate State Contractors license and a workers' compensation certificate approved by the City Attorney's office prior to issuance of a Building Permit. During the course of construction or remodeling, building inspectors are required to inspect the work performed including structural, plumbing, mechanical and electrical. Building Permit fees are based on the value of work to be performed. Mechanical, plumbing, and electrical work are based per item. Plan Check fees are charged as a percentage of the permit fee. Substantial printed information is available to help you through the permit process. Preliminary meetings are highly recommended. A Planning Process Fee is also charged. 14.1.BUSINESS LICENSE City Treasurer's Office Business License Division, 1st Floor (714)536-5267 Any person, including but not limited to, a partnership, corporation or sole proprietor who wishes to conduct any business within the City of Huntington Beach must secure a business license. City ordinance states that no person shall engage in business or transact and carry on a business, trade, profession, calling or occupation in the City or from a location inside or outside the City without first having procured a license from the City to do so. A separate license is required for each branch or location of business. Businesses conducted from commercial and industrial locations are required to have an approved Certificate of Occupancy from the Community Development Department before the business license can be issued. They will determine that the zoning and the building are suitable for the type of business to be conducted at that location. Businesses using a residential address must also have a "Home Occupation Permit". This information is included on the business license application. The City's Community Development Department will advise applicants of limitations for using a residential address. In addition, some business classifications will require police department permits. Business licenses are not transferable. You must advise the Business License Department should you relocate or terminate your business for any reason. Business licenses are renewed annually. 11 The basic fee is$75.00, as of January 1993, for three employees and one vehicle(company owned and operated for business purposes). First 3 employees are$75.00 Next 9 persons, add $4.00 per employee Next 40 persons, add$3.00 per employee All persons in excess of 40 are$2.00 per employee Vehicles: First included in basic fee Additional: Under one(1) ton = $12.00 1-3 tons $35.00 3 tons or more $46.00 Home Occupation Permit Fee is$20.00. Certificate of Occupancy fee is$125.00. (Fees as of January 1993) 5 :CERTIFICATE OF OCCUPANCY Community Development Department Fire Department 3rd Floor 5th Floor (714) 536-5241 Housing and Building (714)536-5411 (714) 536-5271 Planning County of Orange Health Care Agency South Coast Air Quality Management District (Food Establishments Only) (AQMD) Environmental Health Division 21865 E. Copley Drive 2009 E. Edinger Avenue Diamond Bar, CA 91765-4182 Santa Ana, CA 92705 (909) 396-2000(Plan Check) ' (714) 667-3777 (Plan Check) Prior to moving your business into a new or existing building, or changing an existing occupancy classification of a building, a Certificate of Occupancy is required. The purpose of the Certificate of Occupancy is to assure that the proposed business or use conforms with the zoning on the property and that the building meets the Uniform Building Code requirements for your particular use(i.e. fire exits). The Certificate of Occupancy is issued by the Building Division of the Community Development Department and reviewed by both Planning and Building Divisions. Once an application is received, an inspection is performed by the Building Division. If no violations or substandard conditions are cited during the inspection, the City will release electrical service and issue both the Certificate of Occupancy and the City Business License to the applicant. After issuance of the Certificate of Occupancy, the Fire Department will follow-up with an inspection for compliance with the Fire Code. A supplemental Hazardous Material Use Disclosure form must be filed with all applications. This form helps determine if the new proposed use fits the original building classification or if major alteration would be needed to make the building conform to the Building and Fire Codes. In addition, all applicants must obtain a release from the South Coast Air Quality Management District(AQMD). A checklist designed to help applicants meet these requirements is available from the Department of Community Development. It is recommended that preliminary building classification be discussed with the Building Plan Check staff and Zoning staff within the Community Development Department. 12 6. COASTAL DEVELOPMENT'PERMIT Community Development Department Planning Division, 3rd Floor (714)536-5271 Improvements or construction of any structure, and change of use intensification, within the Coastal Zone requires review for conformance with Coastal regulations. Some activities are exempt and some require a Coastal Development Permit. Activities or structures located within the harbor area waterways must have "Approval in Concept" from the City and approval of the Coastal Development Permit from the California Coastal Commission. (Contact the Planning Division for a map showing the Coastal Zone boundaries.) The purpose of the Coastal Development Permit procedure is to review projects for enforcement with the City's Local Coastal Program. The Zoning Administrator and the Planning Commission have the authority to approve or disapprove CDP requests. 7 CONDITIONAL USE PERMIT Community Development Department Planning Division, 3rd Floor (714) 536-5271 The Zoning Code allows certain uses to be permitted in various zones of the City pursuant to a Conditional Use Permit(CUP). A CUP allows a use under specified conditions which assure that use will not be detrimental to the public health, safety, and welfare and will not impair the integrity or character of the zoned district. The Planning Commission either approves subject to conditions or denies such uses. Each application is considered on its individual merit. One of the first steps in the application procedure should be a visit to the Community Development Department's Planning and Zoning counter. It is helpful to have a rough sketch of your project. The purpose of this initial meeting is to review your proposed project as well as to learn how the City's existing and proposed plans and policies may affect the site in question. You will be given the appropriate application forms for your proposed CUP and advised of the additional material that is required. A planning processing fee is also charged. 8. EMPLOYER REGISTRATION........ .. State Employment Development Department Employment Tax District Office 1955 W. Katella, Suite 100 P.O. Box 14156 Orange, CA 92613-1556 (714)288-2600 If you hire employees, you must register with the State Employment Development Department within 15 days after your employees are hired. You must obtain a State Employer Tax Identification Number and withhold State Income Tax, Disability and Unemployment Insurance, and Employment Training Tax. 13 There is no fee to register as an employer. The Employment Development Department will provide information on tax rates and payment schedules. Employers who pay less than $100 per quarter to employees are not required to register with the Employment Development Department. 9. ENCROACHMENT PERMITI . Public Works Department Fire Department 1st Floor 5th Floor (714) 536-5431 (714)536-5411 Construction work or placement of a temporary obstruction within street right of way requires a permit from the Public Works Department. The fee, as of January 1993, is$32 plus 8% of the estimated construction cost. Plan check fees for construction of permanent improvements are$890 plus $220 per , sheet. Plan checking time varies from two weeks to three months, depending on the complexity of the project. Some permits can be issued over the counter, such as a simple driveway cut or temporary obstruction. Also, a permanent obstruction or projection requires an encroachment permit. Obstruction or closure of emergency access routes may require clearance from the Fire Department. Liability insurance or hold harmless agreement will also be required. 10.>ENTERTAINMENT PERMIT Community Development Department Police Department Planning Division, 3rd Floor (714)536-5992 (714)536-5271 A Conditional Use Permit (CUP) is required for businesses providing entertainment(e.g. fashion shows, soloists, disc jockeys, bands, dancing etc.). The CUP will regulate hours of operation, number of entertainers, and other related items such as noise and parking control. Application for the CUP must be submitted to the Community Development Department, Planning Division. Each entertainment place of business must obtain a Live Entertainment Permit from the Police Department. 11 FACILITY USE;PERMIT Community Services Department Sth Floor (714)536-5486 A facility use permit is required for limited use of city clubhouses, parks, community centers, and other indoor facilities such as the Newland Barn. Contact the Community Services Department for specific information and reservations for the facility. 14 12. FICTITIOUS BUSINESS NAME STATEMENT County Clerk's Office Old County Courthouse 211 W. Santa Ana Blvd., 1st Floor Santa Ana, CA 92701 (714) 834-4551 or 834-2200 If you will conduct business under a name other than your legal name, you need to file a Fictitious Business Name Statement with the County Clerk's Office. This statement can be filed within 40 days of the first day of business; however, it is recommended that you file before opening your business to avoid confusion. Another name for a Fictitious Business Name is "Doing Business As" or d.b.a. A license for doing business in Huntington Beach does not require a fictitious business name or d.b.a. To file, go to the public counter at the County Clerk's Office. Check the business name index to make sure no one else is doing business under the name you have chosen. After a Fictitious Business Name Statement has been filed, you will receive a certified copy of the application. The bank you choose for your business' financial transactions will request a copy of this certified form to open your account. The fee for filing a Fictitious Business Name Statement is$24(as of January 1993) for filing one name/one owner. An additional fee will be charged for additional owners and names. A publishing fee will also be charged. Within 30 days after filing a Fictitious Business Name Statement, you need to publish the statement in a newspaper of general circulation in the County. The statement must be published once a week for four weeks. Depending on the newspaper's policy, either you or the newspaper will need to send proof of publication to the County Clerk. (Note: For a fee, many newspapers will provide this complete fictitious name service to you.) 13. FILMING PERMIT Community Services Department Fire Department 5th Floor 5th Floor (714)536-5281 (City Beaches) (714)536-5411 (714)536-5486 (City Property) A filming permit is required for commercial motion or still photography on city property. Contact the Community Services Department for specific information. If"special effects" are used, the Fire Department must be notified and an on-site Fire Safety Inspector will be required. 14. FIRE"CODE PERMIT Fire Department 5th Floor (714)536-5411 As part of the Building Permit and Certificate of Occupancy processes, a fire inspection is required. All fire code specifications are based on the Uniform Fire Code. The Fire Department issues a Fire Inspection Permit for systems or processes for various types of businesses. The permit provides a 15 clearance to operate a business. Permit fees depend on the business and type of fire prevention system required. Permits are renewed annually. If your business requires a dry chemical fire protection system, it must be installed in compliance with the National Fire Protection Association Standards, manufacturer's specifications and the Huntington Beach Fire Department requirements. All systems must he field tested and inspected by a member of the Huntington Beach Fire Department. Special fire protection requirements pertain to mini-warehouse/self storage developments in addition to other fire and building code requirements. Check with the Fire Department for the requirements. City ordinance and the Uniform Fire Code require automatic sprinkler systems in most businesses and sometimes during construction. Specifications depend on the occupancy type and size of the business. To determine the specifications for your business, contact the Fire Department. According to the Uniform Fire Code, permits must be obtained from the Fire Department's Fire Prevention Division prior to engaging in the following activities, operations, practices or functions: Aerosol products Aircraft refueling vehicles Aircraft repair hanger Automobile wrecking yard Bowling pin or alley refinishing Candles and open flames in assembly areas Carnivals and fairs Cellulose nitrate film&storage Combustible fiber storage Combustible material storage Compressed gases Cryogen's Dry cleaning plants Dust-producing operations Explosives or blasting agents Fire hydrants and water-control valves Fireworks* Flammable or combustible liquids Fruit ripening Fumigation or thermal insecticide fogging Garages (motor vehicle) Hazardous materials (use or storage) Hazardous production materials High-piled combustible storage Junk yards Liquefied petroleum gases Liquid-or gas-fueled vehicles Lumber yards in assembly buildings Magnesium working Mall, covered Matches Nitrate film Occupant load increases Open burning Organic coatings Ovens, industrial baking or drying Parade floats Places of assembly Pyrotechnic special effects material Radioactive materials Refrigeration equipment Spraying and dipping Tents, canopies and temporary membrane Tire recapping structures Tire storage Waste material handling plant Welding and cutting operations *City of Huntington Beach Municipal Code prohibits sale or usage of fireworks. 16 15 HAZARDOUS MATERIALS DISCLOSURE Fire Department 5th Floor (714) 536-5676 The Huntington Beach Municipal Code requires annual disclosure of hazardous materials and wastes. Every business must complete a HMIS Disclosure Form , even if no hazardous materials are used. An information sheet, available from the Fire Department or Mandatory Reply Form issued by the Business License Department, will show you the reportable amounts of hazardous materials. The information sheet and/or Mandatory Reply Form will also outline those substances which are exempt from disclosure filing. The Huntington Beach Fire Department has met State and Federal requirements to become the Administering Agency for the Hazardous Materials Disclosure Program. The Hazardous Materials Section manages.and disseminates the information to emergency responders and the community. Please note that the California Health and Safety Code Section 25514(b) states that any business that knowingly fails to disclose hazardous materials after reasonable Notice of Violation shall be liable to the administering agency in an amount not to exceed $5,000 for each day in which the violation occurs. It is likely your business does use some materials that require disclosure on the form. It is estimated that there are over 500,000 materials that are listed as "hazardous". These include such common substances as gasoline, solvents and waste materials. The Hazardous Materials Section will evaluate the disclosure forms and assess fees only for materials required to be reported. When fees are due, an invoice showing the amount due will be sent from the City of Huntington Beach (Checks should not be sent with the Disclosure Form to the Fire Department.) Number of Hazardous Materials Fee 1-3/No Business Emergency Plan $100.00 1-3/With Business Emergency Plan 175.00 4-6 275.00 7-9 350.00 10-19 500.00 20-29 650.00 30-39 800.00 40-99 1,200.00 100-500 2,000.00 More than 500 4,500.00 Oil Companies(except major leases) 50.00 per tank battery Late Filing Fee 100.00 *Note: These fees are subject to change. Please check with the Fire Department for the current fee schedule. Hazardous Materials Disclosure fees are billed and collected on an annual basis. 17 16 HEALTH PERMIT County of Orange Health Care Agency Public Health Services/Environmental Health Division 2009 E. Edinger Ave. Santa Ana, CA 92705 (714)667-3737 A Food, Facility and Public Pool Plan Check is needed for businesses which dispense food to the public and for pool cleaning, septic tank business, public swimming pool installation and hazardous waste usage. A Health Permit, issued by the County's Environmental Health Division, is required before you open for business. Fees for a Health Permit are based on square footage and business category. Call the agency for specific fee information. A Health Permit is required for the following businesses (partial listing): Manufacturer of Food Goods Bars Produce Vendors Dairies Food Establishments/Mobile Food Distributors Bread Stores Retail Markets Soft Serve Machines Pool Cleaning Businesses Underground Hazardous Materials Private Wells (Storage, top or underground) Noise Complaints/Monitoring* Automotive, Gas Stations Package and Packaging Warehouses Dry Cleaners Swimming Pools(apartments, hotels, motels etc.) *The City of Huntington Beach also investigates noise complaints. 17. HOME OCCUPATION PERNH,T,;INCLUDING STATE REGULATED OCCUPANCIES City Treasurer's Office Fire Department Business License Division, 1st Floor 5th Floor (714)536-5267 (714)536-5411 Community Development Department Planning Division, 3rd Floor (714) 536-5271 Every business conducted from a home in Huntington Beach must have both a city business license and a Home Occupation Permit. Home occupations are permitted in residential zones and mobile home parks provided that certain conditions are met. A list of the conditions can be acquired from the Community Development Department, Planning Division. The completed application for the Home Occupation Permit must be approved by the Planning Division before the actual Business License can be issued. Evidence of liability insurance may be required and the premise may be subject to inspection to determine if the home occupation conditions are being met. The Community Development Department can provide you with specific information on liability insurance requirements. State regulated occupations such as day care facilities and home care facilities will also need to be inspected by the Fire Department in order to determine if the State Uniform Fire Code requirements for safety have been met. 18 ........... . ... ................ ......... ..... .. ...... ......... 18 HUNTINGTON BE ORDINANCE CODE, MUNICIPAL CODE AND CODE ENFORCEMENT City Clerk's Office 2nd Floor (714) 536-5227 The City Clerk's office is responsible for maintaining and distributing copies of all city ordinances and resolutions. For a fee, you can be put on the annual subscription list which is mailed out with all updates and changes. Huntington Beach Ordinance Code(Zoning Code) $70.00 Huntington Beach Municipal Code $70.00 Annual subscription renewal after initial fee $45.00 Individual sections of the code can also be purchased for 25 cents per printed page. In addition, you may purchase copies of existing agreements and city contracts or be placed on the city council agenda and minutes mailing list(annual subscription fee of$45 each)through the City Clerk's office. A set of current Zoning Maps may be purchased for$15.00, with updates mailed throughout the year for an additional fee of$15.00. Community Development Department Code Enforcement, 3rd Floor (714)536-5271 Also, the City of Huntington Beach has developed and adopted certain City Codes that can help keep your business community safer and more attractive. If you have a complaint or question regarding a certain property, inquiries may be filed with Code Enforcement in person, by mail, or by telephone in the • following manner: 1. Identify the specific complaint or nuisance. 2. Give the location; street name and business premise number. 3. Give specific description and nature of the complaint. 18 INCOME TAX, FEDERAL Internal Revenue Service(IRS) (800) 829-1040 For information regarding employee withholdings, self employment tax, sole proprietorship, partnership, and corporation taxes, contact the IRS. The IRS will also provide you with a Federal Employer Identification Number. The IRS will provide a Business Kit, seminars for new businesses, additional information and forms. 19 I 19 INCOME TAX, STATElCORPORATION INCOME TAX State Franchise Tax Board Secretary of State District Office Los Angeles Office 600 Santa Ana Blvd. 107 S. Broadway, Suite 4001 Santa Ana, CA 92701 Los Angeles, CA 90012 (800) 852-5711 (213) 897-3062(Corporate Filing Service) Once a year, every business in the State of California is required to submit a Business Income Tax Statement to the Franchise Tax Board. For information regarding your filing, contact the Franchise Tax Board or a private accountant. Corporations are taxed on a different basis. Information regarding tax procedures will be given to you when you file the Articles of Incorporation with the Secretary of State's Office. 20. INSURANCE LIABILITY, WORKERS COMPENSATION AND BOND REQUIltEMENTS Administrative Services Department Community Development Department Risk Management Division, Lower Level Building Division, 3rd Floor (714) 536-5234 (714) 536-5271 City Treasurer's Office Public Works Department Business License Division. lst Floor Contracts Division, 1st Floor (714) 536-5267 (714) 536-5441 You will be required to show proof of Liability Insurance and/or Workers' Compensation coverage before the City will issue a permit. Your business license form will require a signed statement regarding workers' compensation coverage. Liability insurance and Workers' Compensation are issued by private companies. It is best to contact the department issuing the permit to determine the proper insurance liability and workers' compensation requirements. Permit issuing departments can provide a copy of the insurance guidelines to your private insurance carrier who will provide the necessary certificates and information. The completed certificate should be sent directly to Risk Management who will forward it to the City Attorney's Office for final approval as to form. If any information is incorrect or missing, your certificate will be returned for correction. For Building Permits: All applicants who have employees and are seeking permits for work on private property only must show proof of Workers' Compensation Insurance prior to permit issuance. If you have no employees, you must sign a Declaration of Non-employer status form available from the issuing department. You need not provide proof of General Liability insurance or name the city additional insured for work exclusively on private property. For Encroachment Permits and City Contracts: All contractors seeking Public Right-of-Way Encroachment Permits from the Public Works Department and for providers of contractual services to the City of Huntington Beach, proof of Workers' Compensation and General Liability insurance is required. The City of Huntington Beach must be named additional insured for General Liability. Also, a mandatory 30 day cancellation clause must be included. 20 Bonds are required for firms who have a construction contract with the City of Huntington Beach, to be administered by the Public Works Department. Both a Labor/Material Bond and Performance Bond for 100% of the contract amount are required. Any bond form from a recognized entity will be accepted, if properly executed. Once the contract is completed, a one year Warranty Bond is required before final retention payment is issued. For convenience, the Warranty Bond may be included with the Performance Bond. For further information on bond requirements, contact the City's Public Works Department, Contracts Division. 21. SEASONAL`SALES PERMIT Fire Department Community Development Department 5th Floor Planning Division, 3rd Floor (714) 536-5411 (714)536-5271 City Treasurer's Office Public Works Department Business License Division, 1st Floor 1st Floor (714)536-5267 (714)536-5431 All temporary sales lots(Christmas trees, pumpkins, strawberries, etc.)require an operator's permit from the Fire Department. Specific conditions regarding location, maintenance and operation are available through the Fire Department. The permit will not be issued until all conditions and all other necessary city approvals are met, including electrical permit. An on-site inspection by the department is required for final permit approval. An appointment with the City's District Fire Protection Specialist must be made twenty-four(24)hours in advance. A city business license is also required. A bond may be required to guarantee site clean up after close of temporary sales lot. Approval is also necessary from Community Development Department and Public Works before a permit can be issued. You will need the property owner's approval and site plan depicting physical features (sales booth, etc.)as well as the location of parking spaces. An application for temporary sales lots may be obtained from the Fire Department or Community Development Department. 22. SELLER'S PERMIT SALES AND USE TAX PERMIT State Board of Equalization 28 Civic Center Plaza, Room 239 Santa Ana, CA 92701 (714)558-4051 If you will be selling or leasing tangible property in the State of California, you must apply for a Seller's Permit. Seller's Permits are not only required for full-time businesses, but also part-time and temporary businesses such as Christmas tree lots and fireworks stands. The State Board of Equalization is currently offering registration by mail. It is faster and more convenient than applying in person. If your business will be organized as a corporation, you must supply the Articles of Incorporation at the time of application. In the case of a partnership, all partners are required to sign and fill out an application. A California Driver's License is required as proof of identification. The Board issues seller's permits at no cost to the applicant, however a security deposit may be required. The amount of the security deposit will be determined at the time of application and may be refunded after 21 having three years of good payment record. The California sales tax rate currently is 7.25%. The County of Orange has an additional half-cent sales tax known as the District Tax. The Board makes available copies of laws, regulations and pamphlets. There is a tax information help line and tax seminars are offered as some Board offices. 1.23 SIGN PERNIIT Community Development Department Planning Division, 3rd Floor (714) 536-5271 A sign permit is required prior to the placement, erection, reconstruction, alteration or display of any sign, unless expressly exempt by the Huntington Beach Sign Code Ordinance. Regulations regarding the types of signs and their placement depend on the zoning for the parcel and the type of business. In many cases, a Planned Sign Program is required prior to application for a sign permit. Check with the property owner first to determine if a Planned Sign Program exists for the location of your business. The purpose of this program is to encourage coordinated and quality sign design as well as permit more flexible sign standards for commercial and industrial centers. In some cases, a sign must also be approved by the Design Review Board. See Page 28 for additional information. The provisions outlined in the Sign Code Ordinance(Article 961) include exempt signs, permitted signs, advertising banners, prohibited signs including A-frames and portable signs, special signs permit, and non conforming signs/limited sign permits. The property owner must approve all requests for sign permits. For a copy of the Huntington Beach Sign Code Ordinance(Article 961), contact the City Clerk's Office, located on the second floor of the civic center. A fee of$.25 per page will be charged. 24. SPECAL PERITSOOPERATAUSINESSM 7771 City Clerk's Office 2nd Floor (714) 536-5227 You will need a Special Permit if your business falls under the categories listed here. Special permits are issued by the City to businesses requiring further investigation and, sometimes, City Police Department and/or Community Development Department approval. Apply at the City Clerk's Office. Taxi Establishment Owner Permit Certificate of Public Need and Necessity Taxi Driver Permit Tow Establishment Owner Permit Tow Driver Permit Massage Establishment Owner Permit Massage Technician Permit - Adult Entertainment Business Permit Fortune Telling Establishment Owner Permit Fortune Teller Permit Alarm Agent Permit 22 25. SPECIAL USE PERMITS (Limited Tune'Event) Community Development Department Community Services Department Planning Division, 3rd Floor Moorhouse Headquarters (714) 536-5271 103 Pacific Coast Highway Huntington Beach, CA 92648 Fire Department (714)536-5281 5th Floor (714)536-5411 A Special Use Permit is required for limited time events. The location of your event will determine which department is the lead agency in issuing a permit. For outdoor events(such as sidewalk sales)held on private property, contact the Community Development Department(Planning Division) for a Temporary Outdoor Event Permit. See Page 23 for additional information. For events on public waterways, public beaches or parks, contact the Community Services Department, Moorhouse Headquarters for a Specific Event Permit. (See below) Check the Fire Code Permit list on Page 15 to determine if you also need to contact the Fire Department. 26. SPECIFIC EVENT PERNIITS (Public Property) Community Services Department Fire Department Moorhouse Headquarters 5th Floor 103 Pacific Coast Highway (714)536-5411 Huntington Beach, CA 92648 (714)536-5283 A specific event permit is required for the temporary use of public property for the purpose of conducting certain outdoor, short-term events such as art shows, fund-raising events, sidewalk sales, amusement attractions, walkathons, marathon runs, and sporting events, or any combination of these. An application for a Specific Event Permit must be filed with the Community Services Department not less than sixty (60) days or more than 180 days before the date proposed for holding a specific event. Contact the department for the specific information required for the permit application process. Check the Fire Code Permit list on Page 15 to determine if you also need to contact the Fire Department. 27 TEMPORARY OUTDOOR EVENT'PERMIT (Prwate Property) Community Development Department Fire Department Planning Division, 3rd Floor 5th Floor (714)536-5271 (714) 536-5411 For outdoor events held on private property, contact the Community Development Department(Planning Division) for a Temporary Outdoor Event Permit. Events held for more than three(3) consecutive days require approval of a Use Permit by the Zoning Administrator. A maximum of 21 days per year may be allowed for the total number of events on the site. Check the Fire Code Permit list on Page 15 to determine if you also need to contact the Fire Department. 23 28 TENWRARY SIGN........:ERMIT . Community Development Department Planning Division, 3rd Floor (714) 536-5271 A Temporary Sign Permit is required for all promotional signage such as flags, banners, and balloons. ' Contact the Community Development Department's Planning Division for specific information. 29. TRANSPORTATION%RMrr Public Works Department 1st Floor (714) 536-5431 Transportation of a load exceeding state limits of weight or width requires a permit from the Public Works Department. The normal fee, as of January 1993, is$15, and the permit can usually be issued over the counter. 30 TRASH BIN MI PERT Public Works Department 1st Floor (714)536-5431 Temporary placement of a trash bin within street right of way requires a permit from Public Works. The fee, as of January 1993, is$30, and the permit can usually be issued over the counter. 3i UNDERGROUND STORAGE TANKS Fire Department County of Orange Health Care Agency 5th Floor Environmental Health Department (714)536-5411 2009 E. Edinger Santa Ana, CA 927-5 (714)667-3700 I A flammable or combustible liquid storage tank may be located underground, outside of or under a building if the installation meets specific requirements. You must submit, in duplicate, a scaled plot plan of the installation to the County of Orange Environmental Health Waste Management Section. After the plans have been stamped with the County of Orange approval, submit them to the Huntington Beach Fire Department. I 24 32. WEIGHTS AND MEASUMES DEVICE REGISTRATION County of Orange Weights and Measures 1010 S. Harbor Blvd. Anaheim, CA 92805 (714)447-7100 If you will be using commercial weighing or measuring equipment in your business, you are required to notify the County Office of Weights and Measures within 24 hours of equipment installation. Businesses such as delicatessens, candy stores, grocery stores, or gas stations are included in this category. Within two weeks of notification, the scales or weights in your business will be inspected. The County of Orange bills businesses annually on July 1 for registration fees. Registration fees (as of January 1993)are: 1-3 devices $20 per year 4-9 devices $40 per year more than 9 devices $60 per year 33. ZONING APPROVAL Community Development Department Planning Division, 3rd Floor (714) 536-5271 Before applying for any of the business permits outlined in the Check List, it is helpful if you make sure that the proposed use of the property or type of business is consistent with the zoning. The City is divided into zones within which permitted and conditional uses are listed. To check the zoning, you will need the exact location of the property (the Assessor's Parcel Number or legal description of the property.) If you are the property owner, this number can be obtained from your property tax statement. If you are a renter or lessee, your landlord will have the number. If this number is not readily available, you can obtain the information from the County Assessor or the parcel books located in the Huntington Beach Community Development Department. You will need the exact location of the property. Once you have obtained the exact location, contact the Zoning Counter in the City's Community Development Department (Planning Division) to check the zoning. A planner will be there to assist you. Some zones have restricted commercial and industrial uses. In addition, some businesses may require review and approval by the Zoning Administrator or Planning Commission. 25 ... ............................ ....................... ...... ...>: ....... .. ......................................... ''` 1'�TE :.:... ( : RTI3'TIN� ILIfi REIVI+ ?DEUTIOIt :>:::::>: 1 BUIIDING PLAN CHECK AND PERMIT Community Development Department Fire Department 3rd Floor 5th Floor (714)536-5241 (Building) (714)536-5411 (714)536-5271 (Planning) Public Works Department 1st Floor (714)536-5431 If you will be constructing or remodeling, you need a Building Permit. (See Building Permit entry under Business Start-Ups.) You will need to also check with Public Works Department for a complete listing of fees and permits which will be required prior to issuance of building permits or prior to occupancy, whichever occurs first, unless otherwise noted. Fee amounts will be calculated by Public Works and submitted to the applicant as soon as sufficient information is available to determine the fees. Examples of public works fees include: City Sewer Connection Fee Orange County Sanitation District Connection Fee Water Connection Fee Drainage Fee Traffic Impact Fee Plan Check Fees Inspection Fees The Fire Department provides plan review and inspection of fire sprinklers and alarm systems. The fees and routing of plans to the Fire Department are administered by the Community Development Department. As a part of your final plans, you will need to include a landscape plan. Specific requirements will be given to you by the Community Development Department, Planning Division. You should also be aware that the traffic impact fee will be calculated at the time you apply for your Certificate of Occupancy. The rate, calculated by the Public Works Department's Traffic Division is $75 per trip generated in a 24 hour period, or vehicle trips daily (VTD), based on the type(s) of land use(s) in the project. The fee is assessed and collectable prior to final inspection or the issuance of a Certificate of Occupancy. Although no estimates will be given by the Public Works Department, you may wish to engage a qualified traffic engineer to analyze the development proposed for trip generation and budget fee amounts. 2. CERTIFICATE OF OCCUPANCY A certificate of occupancy is required for a new facility. For specific information, see Certificate of Occupancy, page 12, Business Start-Ups and Expansion section. 26 3. COASTAL DEVELOPMENT PERMIT Community Development Department Planning Division, 3rd Floor (714)536-5271 A Coastal Development Permit (CDP) is generally required for improvements or construction of any structure located within the Coastal Zone. See the Start-Up and Expansion section, page 13 for information. You should check with the Planning Division to see if you will need this permit. 4. CONTRACTOR/SUBCONTRACTOR BUSINESS LICENSES City Treasurer's Office Business License Division, 1st Floor (714)536-5267 The Huntington Beach Municipal Code prescribes the Business License Fees below for contractors and subcontractors, whose principal place of business is elsewhere, engaging in business in the City of Huntington Beach. The basis for a contractors' business license fee is the amount of business conducted in this City, gauged by the average number of employees and number of vehicles used in this city. (Fees effective January 1993) First 3 employees and one vehicle: $75.00 Next 9 employees, per employee: 4.00 Next 40 employees, per employee: 3.00 All other employees, per employee: 2.00 Each vehicle, over one, per vehicle: $75.00 If the applicant so desires, an option is available for payment of license fees that permits an unlimited number of vehicles and employees. General Contractor(B 1/SB 1)per year: $142.50 Engineering Contractor(A/SA)per year: 142.50 Sub-Contractor, per year: 90.00 Specialty Contractor, per year: 90.00 The classification assigned to a contractor by the State of California Department of Professional and Vocational Standards will be used by the City of Huntington Beach to determine in what category the City License will be issued to Contractor applicants. A license as a Sub or Specialty Contractor will not be issued to a person classified by the State as a General or Engineering Contractor unless such contractor holds a valid Sub or Specialty Contractor classification license in addition to their General or Engineering License. 27 5. DESIGN REVIEW Community Development Department Planning Division, 3rd Floor (714)536-5271 In the City of Huntington Beach, Design Review Board (DRB) recommendation is required prior to approval of any project located along a major arterial or within areas designated as a Civic Facilities, Civic District and Redevelopment Survey or Project Areas. The Planning staff will advise you if the project is subject to this review. This review includes: A. New buildings, structures and signs. B. Exterior remodeling and exterior changes,to existing structures for work which requires the issuance of a building permit. C. Landscaping plans. 6. ENVIRONMENTAL ASSESSMENT Community Development Department Planning Division, 3rd Floor (714)536-5271 Environmental review is required for zone change requests, new subdivision developments, certain variances, Conditional Use Permits and City projects. The environmental review process evaluates the project, identifies any significant environmental effect(s), evaluates alternatives and approves mitigation measures as necessary. Environmental review takes place concurrently with the processing of the project application. At the time you receive your application forms, a City Planner will advise you as to whether the submittal of an Environmental Assessment (EA) is required. If a project is subject to the requirements of the California Environmental Quality Act (CEQA) and is not exempted under any of the provisions of the CEQA Guidelines, the City must conduct an initial study to determine if the project may have a significant adverse effect on the environment, or whether previous environmental analysis has been performed which addresses the impacts of the specific project being proposed. If an EA is necessary, you will be given the form and advised of any additional material that is required. Complete details and instructions are included on the form. The filing fee for an Environmental Assessment is $500.00 (January 1993). 7. FOOD-RELATED BUSINESSES PLAN CHECK County of Orange Health Care Agency Public Health Services/Environmental Health Division 2009 E. Edinger Avenue. Santa Ana, CA 92705 (714)667-3737 If you are constructing a new food-related facility or are planning to make any type of tenant improvements to an existing facility, you need to go through a Plan Check with the County's Environmental Health Division. In the case of tenant improvements, a Plan Check is required only if the 28 improvements you plan to make are related to the food preparation area of your establishment (such as changes to any permanently-installed equipment or structural changes to the food preparation area). Call the County to inquire about the documentation required for the Plan Check. In addition to the Plan Check by the County, you need to submit plans to the Community Development Department. The City can not grant you a Building Permit until your plans are approved by the County Environmental Health Division. You can submit plans to the County and City simultaneously. Once construction is finished, you need to return to the County Environmental Health Division and obtain a Health Permit to operate. 8. GRADING PERART Public Works Department 1st Floor (714)536-5431 Grading work requires a permit from the Public Works Department. Plan check and inspection fees range from$200 for 100 cubic yards of excavation to $1000 for 10,000 cubic yards of excavation, plus 5% of the estimated cost of on site improvements (paving and drainage). Plan checking time ranges from six weeks for small projects to three months for complex projects. 9 OIL RELATED PROPERTY Fire Department Petro Chem Office, 5th Floor (714)536-5676 or 536-5411 Nearly two-thirds of the City of Huntington Beach was once an active oil-producing property. Should an abandoned oil well be located on a piece of property, subject to development, certain requirements must be satisfied prior to the development of that property. 1. Abandonment status of said well. This information can be obtained from the State Division of Oil and Gas located in Long Beach. 2. Analysis of the oil well by a State of California registered Petroleum Geologist or Petroleum Engineer. 3. Independent review of the well history by the Cities Petroleum Geologist. There is a $300 fee for this service. 4. If the well does not meet current day Division of Oil and Gas Standards, the well may have to be re-abandoned. 5. Fire Department Specification #422 outlines further requirements regarding the abandonment of an oil well. You can obtain this document from the Fire Department. 6. If the oil well is abandoned properly, and the building is to be constructed over the oil well, the developer will be required to provide a venting system over the well and additionally, will be required to install a non-permeable methane barrier within the foundation. Additional requirements may be imposed if warranted such as methane detection alarms, fire protection systems, etc. 7. Depending on the site history and other environmental factors submitted for fire department review, the developer may be required to demonstrate that the soil meets the Fire Department Soil Cleanup Standard, Specification #431-92. For further information on this issue, contact the Fire Department's Petro-Chem Office. 29 10 > PARCEL MAP Community Development Department 3rd Floor (714)536-5241 (Building Division) (714)536-5271 (Planning Division) A building site is required prior to the issuance of a building permit. The building site must have been created in compliance with local subdivision requirements. It must comply with minimum size and frontage dimensions of the zoning district in which the property is located. A building site may be created by a parcel map. To apply for a Parcel Map, contact the Planning and Zoning Division in the Community Development Department to make an appointment. A meeting will be set up to discuss your plans, and you will be given the appropriate application forms and advised of the additional material that is required. State law requires the map be approved by the City and submitted for recordation prior to issuance of a building permit. .. ....... ......... ....._ ... ......... ......... ....._.. ......... _ . ......._. .... ..... ......... 11 PUBLIC ASSEMBLIES, FLAMMABLE& HAZARDOUS MATI'RTAI OCCUPANCIES Fire Department 5th Floor (714)536-5411 Any new business site which will have public assembly, flammable or hazardous materials occupancies (see page 17) must be inspected by the Fire Department to determine if the Uniform Fire Code requirements have been met. 12. REDEVELOPMENT PROJECTS:: Economic Development Department Community Development Division Redevelopment Division, 5th Floor Planning Division, 3rd Floor (714)536-5582 (714)536-5271 If you are constructing a new development within one of the City's redevelopment project areas, you will need to contact both the Community Development Department and the Redevelopment Division of the Economic Development Department. It is best to set up a meeting with both departments to discuss your plans before proceeding. Certain restrictions as well as opportunities exist when constructing a business within a redevelopment project area. (Contact the Redevelopment Division for additional information and a map showing redevelopment project areas.) 30 I 13. STOCKPILE PERMIT :. Public Works Department 1st Floor (714) 536-5431 Temporary placement of stockpile material (earth material greater than 50 cubic yards) requires a permit from the Public Works Department. A fee will be charged. The permit can normally be issued within two days. 14. ZONING APPROVAL Community Development Department Planning Division, 3rd Floor (714) 536-5271 If you are constructing a building, it is an excellent idea to check the zoning codes and the building codes that apply. The City is divided into zones within which permitted and conditional uses are listed, as well ass regulations governing building, setbacks, landscaping, parking, and other development standards. Some projects require entitlements granted by the Zoning Administrator or Planning Commission. Check the Zoning Ordinance to determine if the use is permitted and/or whether you will need an entitlement. You need to go to Planning for all the necessary applications and are available at the Zoning counter. Some applications require filing fees. 31 +CFiECI LT T:BUDEPARTI IENT.OR.AGEN. . > > >><' .... ...................................... G CITY OF HUNTIN TON BEACH: V RISK MANAGEMENT (Lower Level) • GENERAL LIABILITY INSURANCE • WORKERS' COMPENSATION V PUBLIC WORKS DEPARTMENT (First Floor) • ENCROACHMENT PERMIT • GRADING PERMIT • INSURANCE LIABILITY, WORKERS COMP & BOND REQUIREMENTS • STOCKPILE PERMIT • TRANSPORTATION PERMIT • TRASH BIN PERMIT V TREASURER'S OFFICE/BUSINESS LICENSE DIVISION (First Floor) • BUSINESS LICENSE • CONTRACTORS'/SUBCONTRACTORS' BUSINESS LICENSE • HOME OCCUPATION PERMIT V CITY CLERK (Second Floor) • CITY CODE ORDINANCES AND RESOLUTIONS FOR PURCHASE • CITY COUNCIL AGENDAS AND MINUTES • SPECIAL PERMITS FOR SPECIFIC BUSINESSES (NEED POLICE INVESTIGATION) • ZONING MAPS FOR PURCHASE 12 COMMUNITY DEVELOPMENT DEPARTMENT (Third Floor) • ALCOHOLIC BEVERAGE PERMIT • BUILDING PERMIT • BUILDING PLAN CHECK • CERTIFICATE OF OCCUPANCY • COASTAL DEVELOPMENT PERMIT • CONDITIONAL USE PERMIT • DESIGN REVIEW • ENVIRONMENTAL ASSESSMENT • ENFORCEMENT • ENTERTAINMENT AND LIVE ENTERTAINMENT PERMIT • HOME OCCUPATION PERMIT • PARCEL MAP • SIGN PERMIT • SEASONAL SALES PERMIT • TEMPORARY OUTDOOR EVENT PERMIT • TEMPORARY SIGN PERMIT • ZONING APPROVAL • ZONING CHECK COMMUNITY SERVICES DEPARTMENT (Fifth Floor) • FACILITY USE PERMIT • FILMING PERMIT • SPECIAL USE PERMITS • SPECIFIC EVENT PERMITS ECONOMIC DEVELOPMENT DEPARTMENT (Fifth Floor) • REDEVELOPMENT PROJECT AREAS 33 V FIRE DEPARTMENT (Fifth Floor) • FIRE CODE PERMIT • FIRE SPRINKLER AND ALARM SYSTEM REVIEW • HAZARDOUS MATERIALS DISCLOSURE • HOME OCCUPATION PERMIT, STATE REGULATED OCCUPANCIES • OIL-RELATED PROPERTY • PUBLIC ASSEMBLIES, FLAMMABLE & HAZARDOUS MATERIALS OCCUPANCIES • SEASONAL SALES PERMIT • UNDERGROUND STORAGE PERMIT ..COUNTY OF ORANGE. • FICTITIOUS BUSINESS NAME FILING • FOOD-RELATED BUSINESS-PLAN CHECK • HEALTH PERMIT • UNDERGROUND STORAGE • WEIGHTS & MEASURES AIR.QUALITY MANAGEMENT.............. ISTRIC • AIR QUALITY PERMIT • CERTIFICATE OF OCCUPANCY STATE OF,CALIFORNIA: • ALCOHOLIC BEVERAGE LICENSE • EMPLOYER REGISTRATION • SELLERS PERMIT/SALES & USE TAX PERMIT • STATE INCOME TAX /CORPORATION INCOME TAX r,EDERAL GOVERNMENT: • FEDERAL INCOME TAX 34 ::.. > ::::.>::::>::>::::: ::: -URCE F R:E�I'TR.EPRENEURS > ><ck:Refere c .L " ;Details on Fa11Qw> P es'`>`>';.. ::..>:.::::>::'>''> ...... INFORMATION/SUBJECT SOURCE/CONTACT Air Quality Air Quality Management District Bad Checks/Fraud City of Huntington Beach Business, Community, Economic Information City of Huntington Beach Huntington Beach Chamber of Commerce Business and Professional Licenses Dept. of Consumer Affairs Chamber of Commerce Membership Huntington Beach Chamber of Commerce Contractors' Licenses Contractors' State License Board Economic and Business Development Data State Trade&Commerce Agency Employment Assistance Employment Training Panel State Employment Development Dept. Environmental Permits State Office of Permit Assistance Calif. Business Environmental Asst. Ctr. Environmental Regulations Environmental Protection Agency California Environmental Protection Agency (Cal-EPA) Financial Assistance U.S. Small Business Administration Flood Insurance/Flood Proofing Federal Emergency Management Agency Frontage and Curb Improvement City of Huntington Beach Garbage, Refuse and Recycling Information Rainbow Disposal Company Incorporation/Trademark and Service Mark Registration Secretary of State's Office Private Industry Council (PIC) Orange County District Office Property Data Huntington Beach/Fountain Valley Assn. of Realtors Huntington Beach Community Development Dept. Property Tax County Assessors Office Safety and Health Consultation, Training and Evaluation Unit State Industrial Relations Dept. 35 INFORMATION/SUBJECT SOURCE/CONTAC.T Sewer and Water Installation City of Huntington Beach County Sanitation District Small Business Assistance Small Business Assistance Center (Huntington Beach Office) Small Business Development Center (Orange County Office) U.S. Small Business Administration Telephone and Utilities GTE California Inc. The Gas Company Southern California Edison Company Toxic and Hazardous Materials City of Huntington Beach County of Orange State Dept. of Health Services Trade and.Exports State Trade&Commerce Agency World Trade Assn. of Orange County Visitor Information/Statistics Huntington Beach Conference&Visitors Bureau 36 I AIR QUALITY Public Advisor's Office South Coast Air Quality Management District 21865 East Copley Drive Diamond Bar, CA 91765 (909) 396-3210 BAD CHECKS/FRAUD Economic Crime Unit Huntington Beach Police Dept. 2000 Main Street Huntington Beach, CA 92648 Civilian Check Investigators: (714)536-5954 or(714)536-5654 BUSINESS AND CO1� TY INFORMATION Department of Economic Development Business Development Division City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 (714)536-5542 Land market data, business inquiries, financial information, demographics, and economic data on the City of Huntington Beach. Huntington Beach Chamber of Commerce 2100 Main Street, Suite 200 Huntington Beach, CA 92648 (714) 536-8888 Information on community and business development. Membership business referrals. Note: Small Business Assistance Center, serving West Orange County businesses, is located in the Chamber of Commerce office. ......... ...... ..... USINESS AND'PROFESSIONAL.LICENSES Department of Consumer Affairs State of California-State and Consumer Services Agency Region IV 1561 E. Orangethorpe Ave., Suite 220 Fullerton, CA 92631 (714)680-7851 The Department of Consumer Affairs handles business and professional licenses for occupations ranging from accountants to vocational nurses. 37 i ICON T1UCT01tS:' LICENSFS Contractors' State License Board 28 Civic Center Plaza, Room 351 Santa Ana, CA 92701 (714)558-4086 If you plan to set up a business as a contractor, you must obtain a contractor's license from the State. ECONONIIC AND-BUSINESS DEVELOPMENT DATA State Trade and Commerce Agency 1121 L Street, Suite 600 i Sacramento, CA 95814-3926 (916) 322-1394 I Information regarding Film Industry, Industrial Economic Data, Legislation, Local Economic j Development, Small Business, Tourism, and Trade. EMPLOYMENT ASSISTANCE Employment Training Panel 4640 Lankershim Blvd. Suite-311 North Hollywood, CA 916012 (818)505-6200 Provides assistance to employers by funding training for new and existing employees. This job-specific service is provided by contracting with businesses and training agencies. State of California Employment Development Dept. (EDD) 12661 Hoover Street Garden Grove, CA 92642 (714) 897-3699 Provides employment services including on-site (employer premises) or in-house (EDD premises) recruitment assistance. EDD also provides reception service, will interview and pre-screen applications for completion and job qualifications. The EDD will attend employer orientation session(s) to review and process those applications that meet the Job Tax Credit program criteria. Other services include automated Job Match system and assistance with grand openings and seasonal hirings. ENVIRONMENTAL PERMITS` State Office of Permit Assistance 1400 Tenth Street Sacramento, CA 95814-5502 (916) 322-4245 This office services as a "One-Stop" Agency for State environmental regulations. It publishes a permit handbook which describes over 40 major permits issues by State agencies for projects affecting the environment. California Business Environmental Assistance Center(BEAC) 100 S. Anaheim Blvd., Suite 125 Anaheim, CA 92805 (714)563-0135 38 i Provides confidential regulatory compliance counseling, financial assistance counseling and technical assistance to small businesses community. Sponsored by California Department of Commerce, California Community Colleges, California Energy Extension Service, South Coast Air Quality Management District, North Orange County Community College District and Fullerton College. ENVIRONMENTAL REGULATIONS FEDERAL: Environmental Protection Agency(EPA) West Coast Office(Region 9) 215 Fremont Street San Francisco, CA 94105-2306 Technical Information (415)974-8119 Hazardous Material (415)974-7473 STATE: California Environmental Protection Agency (Cal-EPA) 555 Capitol Mall, Suite 525 Sacramento, CA 95814 (916)445-3846 Regulatory Assistance: (916)327-0979 Hazardous Material (916) 324-9924 FINANCIAL ASSISTANCE U.S. Small Business Administration 901 Civic Center Drive, Suite 160 Santa Ana, CA 92703 (714) 836-2494 Pacific Coast Regional Small Business Development Corporation 3810 Wilshire Boulevard, Suite 1901 Los Angeles, CA 90010 (213) 739-2999 The U.S. Small Business Administration (SBA) offers a variety of loan programs to eligible small businesses who cannot borrow on reasonable terms from conventional lenders in the amount needed without government help. Most of SBA's business loans are made by private lenders and then guaranteed by the Agency. Many local banks in Huntington Beach participate in this program. Contact the SBA for a complete listing of lenders and financial programs. Pacific Coast Regional is a non-profit corporation founded in 1977 to assist small business owners. Through contracts with the State of California and the City of Los Angeles, PCR provides management and technical assistance, and up to a 90% guarantee of financial instruments for small businesses. 39 FLOOD INSURANCE/FLOOD PROOFING` Federal Emergency Management Agency (FEMA) (800)638-6620 Properties located within a flood plain are subject to FEMA requirements (See Article 940, Huntington Beach Ordinance Code). Non-residential sites may be elevated or flood proofed to reduce potential damage from flooding. Flood insurance may be required by your lender. FRONTAGE AND CURB IMPROVEMENT Public Works Engineering Division 2000 Main Street, 1st Floor Huntington Beach, CA 92648 (714)536-5431 Information regarding frontage and curb improvements. Frontage improvements may include sidewalks, gutters, street lights, driveways, drainage facilities, and underground utilities. GARBAGE, REFUSE AND RECYCLING INF IO ORMATN Rainbow Disposal Company 17121 Nichols St. Huntington Beach, CA 92647 (714) 847-5818 INCORPORATION/TRADEMARK.AND SERVICE MAkk..REGISTRATION _.. Secretary of State's Office Los Angeles Office 107 S. Broadway, Suite 4001 Los Angeles, CA 90012 (213) 897-3062 Limited Partnerships Division 923 12th Street, 3rd Floor Sacramento, CA 95814 (916) 324-6785 U.S. Patent and Trademark Office Washington D.C. 20231 The Secretary of State's Office handles Articles of Incorporation and Corporation Qualification. The Limited Partnership Division deals with Service Mark Registration and Trademark Registration. For details call the above phone numbers. You must file for trademark registration in the State of California. Application for national trademark registration is made to the Commissioner of Patents and Trademarks in Washington D.C. by the trademark owners or their attorney. Application for a federal trademark can only be made after acquiring a trademark registration in at least three states. A complete application for registration includes (a) written application, signed and sworn to; (b) Drawing of the mark; (c) five specifications or facsimiles; (d) filing fee. 40 A U.S. Patent is issued under the seal of the Patent and Trademark Office.. The patent grants to the patentee for a term of specified years the right to exclude others from making, using, or selling the invention throughout the United States. It is advisable to consult a patent attorney for each step of the procedure, beginning with the preliminary search to determine the patentability of an invention prior to filing the application for patent. For further information, as well as for printed copies of patents already issued, write to the Commissioner of Patents and Trademarks. PRIVATE INDUSTRY COUNCIL MIC) Orange County Private Industry Council 1300 So. Grand Ave. #B, 3rd Floor Santa Ana, CA 92705 (714) 567-7371 On-the-job training program, targeted jobs tax credits, and customized classroom training information. PROPERTY DATA Huntington Beach/Fountain Valley Association of Realtors 8101 Slater Avenue Huntington Beach, CA 92647 (714) 847-6093 Community Development Department Planning Division 2000 Main Street, 3rd Floor Huntington Beach, CA 92648 (714) 536-5271 The Association of Realtors provides current information on available commercial and industrial property, leasing and vacancy rates. In addition, a Community Profile can be acquired from the City of Huntington Beach Community Development Department. PROPERTY TAX County of Orange Assessor's Office 12 Civic Center Plaza Santa Ana, CA 92701 (714) 834-2727 A copy of all building plans and building permits is given to the Assessor's Office. This information and a site inspection will be used to properly assess the property and improvements for the calculation of property tax. SAFETY AND HEALTH CONSULTATION,;TRAINING & EVALUATION;UNIT State Industrial Relations Dept. Santa Fe Springs Field Office 10350 Heritage Park Dr., Suite 201 Santa Fe Springs, CA 90670 (310) 946-9366 41 SEWER>AND>:WATER INSTALLATION Water Installation Applications Treasurers Office 2000 Main Street, 1st Floor Huntington Beach, CA 92648 (714) 536-5919 Sewer Installation Public Works Department 2000 Main Street, 1st Floor Huntington Beach, CA 92648 New Developments (714) 536-5431 Maintenance, Service,Emergencies (714) 960-8861 Orange County Sanitation District 10844 Ellis Ave. Fountain Valley, CA 92708 (714) 962-2411 SMALL BUSINESS ASSISTANCE ......... ..... Small Business Assistance Center 2100 Main Street, Suite 200 Huntington Beach, CA 92648 (714) 536-8888 Serves West Orange County business community. Provides Business Counseling, Seminars and Resource Library. The Center's services are provided through association with Huntington Beach Chamber of Commerce, City of Huntington Beach Economic Development Department and the California Small Business Development Center, Orange County Office. Orange County Small Business Development Center(SBDC) 901 E. Santa Ana Blvd. Santa Ana, CA 92701 (714) 647-1172 Program is administered by the California Trade and Commerce Agency, Office of Small Business in cooperation with the Chancellor's Office, California Community Colleges and the U.S. Small Business Administration. Provides technical assistance to small businesses in the Orange County area. U.S. Small Business Administration 901 Civic Center Drive West, Suite 160 Santa Ana, CA 92703 (714) 836-2494 Offers programs for financing, training and advocacy for small firms. TELEPHONE, UTILITIES AND CABLETELEVISION GTE California, Inc. Business Customers Installation &Service (800)482-8705 8:30 a.m.-5:00 p.m. 42 i The Gas Company 3835 W. First Street Santa Ana, CA For emergencies, billing information and service requests (714) 539-2220 Southern California Edison Company 7333 Bolsa Ave. Westminster, CA 92683 For service and billing (714) 835-5200 (800) 3-EDISON for business retention program Southern California Edison Company offers a Business Retention Program, including Energy Efficiency Services, Environmental Counseling, Financial Incentives, Site Selection Assistance and Shared Resources. Paragon Cable 7441 Chapman Avenue Garden Grove, CA 92641 (714) 895-6886 TOXIC AND HAZARDOUS MATERIALS Huntington Beach Fire Department Petro Chem Office(Oil Field and Hazardous Materials) 2000 Main Street, Sth Floor Huntington Beach, CA 92648 (714) 536-5676 or 536-5411 County of Orange Health Care Agency Environmental Health Department 2009 E. Edinger Avenue Santa Ana, CA 92705 (714) 667-3700 State Department of Health Services Toxic Substances Division 601 N. 7th Street Sacrament, CA 95814 (916)445-6900 Information regarding state regulations on hazardous materials and Prop. 65 State Department of Toxic Substances Control Region 4 Office 245 W. Broadway, Suite 350 Long Beach, CA 90802 (310) 590-4991 43 TRADE AND>EXPORTS State Trade and Commerce Agency 1121 L Street, Suite 600 Sacramento, CA 95814 (916) 322-1394 World Trade Association of Orange County One Park Plaza, Suite 150 Irvine, CA 92614 (714) 724-9822 U.S. Customs Information (Imports) Treasury Department 300 Ferry Terminal Island (310)514-6030 U.S. Department of Commerce(Exports) Bureau of Export Administration 3300 Irvine Ave. Newport Beach, CA 92660 (714)66070144 U.S. Department of Commerce International Trade Administration USFCS Suite 1 116-A W. 4th Street Santa Ana, CA 92701 j (714) 836-2461 VISITOR INFORMATION/STATISTICS Huntington Beach Conference and Visitors' Bureau 2100 Main Street, Suite 190 Huntington Beach, CA 92648 (714) 969-3492 Provides visitor information for both the business and leisure traveler. Also offers statistical data on tourism industry for Orange County and State of California. 44 U u1 = J N U <O < 0 < F < Z N O w m c7 a w 3: z I� 1 0 ' ° SEAL WESTMINSTER " BEACH E BOLSA LU 8 a i I ~ m o °� Z cczco 0 VRDDEN rn < ` z EDINGER • a I 1 WARNER ............ i li �.. FOUNTAIN E, --'._..--- --•-.............._. .._.. —__... ._---------- SLATER VALLEY TALBERT Lo _ ,�" i < 8 cc \��,�� I'` I r cn co L_.._. ..............—.�____._�. .............. I GARrIELD 5� I � ORK i OWN i � d DAMS INDIANAPOLIS /BAN TLANTA O MILTON NING /al COSTA MESA LEGEND City Boundary HUNTINGTON BEACH CITY LIM11TS _ City of Huntington _Iv u Ceach General Plan12 �I = 45 e° Los P Angeles omona Fwy Whittier j `1 Los Angeles County P Orange County 'ae C > o u I LL a \ o a c HWY 91 Artesia J' O T `1 .T i s say/ Ll Anaheimd 3 'd Oranoe Long Beach HWY 22 / J > Santa s Ana s o C. HUNTINGTON BEACH Newport Beach Laguna Beach HUNTINGTON BEACH REGIONAL LOCATION MAP 7.5 City of Huntington Beach General Plan _ - H 1 46 HUNTINGTON BEACH CIVIC CENTER 2000"Main Street Huntington Beach, CA 92468 4ps FwY U) C m o ♦tP v J O W �7 m A YORKTOWN AVE.. H.B. F CITY N HALL Y Q J The Business Development Division wishes to express appreciation to the following individuals who provided their valuable expertise to this publication: Connie Brockway, City Clerk Chuck Burney, Fire Department Dennis Coulter, Risk Management Rick Grunbaum, Fire Department Dick Harlow, Business Community Representative Maybrice Johnson, City Clerk's Office Susan Pierce, Community Development Dept./Planning Division Cheryl Salas, Community Services Department Mary Walden, Fire Department Betty Walker, Business License Division This publication is provided as a public service by the City of Huntington Beach. Every attempt has been made to assure the accurancy of the Business Assistance Check List. The City of Huntington Beach assumes no responsibility for errors or omissions. Corrections and updates will be made in future publications. Your constructive comments and suggestions are welcome. 47 QOO�OQQ�OQ MEN MW TMER Mmm©oo6bo00° ©opoP aoodo ©opoP PPo homp og mdO l m 000P f no�oP aoupIIop An Rh D000 Qo00oo00 OD©OOOQ�OO�OOQ SAW I OboPoopo °got Qd©oobmP Qop WhT° M@mb oo4 ft mfthbmP mAmm M. mmkw° Oopm %NM QO©000©4Pmd Effi P ge hmmmomh mmimp©O BOOM MpaMME Horn coot horn Oo ntm ED M MMMT SAW Mwbgl MEMMUMMERUM Doo ©moo ° RM Nmulw Rod M @m@oq ° QdoMoo6nwoo Qo©©QPOo©OP ood Qoo©oop Qoo44 Qoa© ° Qo©©000i�9 DooaDop©oo�Ip00006op ood Iloo6op NMI a amm° TO%MPoop a Oi f&T Q4000 ©op ° pob0o6©oP6o0�op0000Poop ©UAW ©odd ° Qo©©oomm Qomhw Ooo NO@ ° O'0 b©oPbaDQoo Mrs ft MMA Poo ° Po W NOW hog Poo ° RM i City of a Huntington Beach Department of Economic Development Business Development Division I� 9000 Dlain Street Huntington Beach California 90640 for further Information . Contact: Jim Lamb Tom Hndrushy Him 0 a r a n e Michael Gifford 714 • 536 • 5540 EHH 714 375 5007 ,Q . Ccac.�i �4 DRAFT AFFORDABLE HOUSING ORDINANCE Purpose A. The purpose and intent of this Chapter is to implement the goals, objectives and policies of the City' s Housing Element. It is intended to encourage low-and moderate-income housing, and housing for older residents which is integrated, compatible with and complements adjacent uses, and is located in close proximity to public and commercial services . B. The affordable housing program is one tool the City utilizes to meet its commitment to provide housing affordable to all economic sectors, and to meet its regional fair-share requirements for construction and rehabilitation of housing affordable to low- and moderate-income households. Applicability A. This chapter shall apply to all residential projects greater than three (3) units in size. B. A minimum of ten (10) percent of all the units included in projects of three (3) or more units shall be made available to very low, low and moderate-income households based on the Orange County Median Income as defined by the Department of Housiri p _ Urban Development. C. Developers of residential 'projects of less than one (1) acre in size or fewer than 25 units may elect to pay a fee in lieu of providing the units on-site to fulfill the requirement of the Section.- Properties designated R1-Low Density Residential shall have the option to provide the affordable units at an off-site location, or pay the in-lieu fee, unless they are part of a specific plan project. D. All commercial and industrial development based on the gorss square footage. Fees in Lieu of Construction A. Fees paid to fulfill the requirements of the Section shall be placed in the City' s Affordable Housing Trust Fund, the use of which is governed by Section B. The amount of the fees shall be calculated-using the fee schedule established annually by resolution of the City Council . -1- (1804D) • C. One hundred (100) percent of the fees required by this Section shall be paid prior to issuance of a building permit. D. Fees paid as a result of new residential projects shall be based upon the number and size of residential units which are to be constructed. E. Fees paid as a result of construction of non-residential projects in residential zones shall be based upon the maximum number and size of the residential units which would have been allowed by the underlying zoning. Non-profit, charitable, educational and religious uses shall be exempt from this fee. F. Common interest development created through the conversion of existing residential housing shall either make available twenty (20) percent of all of the units in the project to low- and moderate-income households, or pay an in-lieu fee as calculated in Sections Incentives for Providing Affordable Housing A. These standards are designed to encourage new affordable housing projects that are not subject to Section . In order to encourage the construction of housing affordable to low- and moderate-income households and in order to encourage new construction of affordable housing, various density bonuses shall be permitted. They shall take into account the underlying zoning, the need for specialized types of housing and the particular operating needs of non-profit housing providers . B. No density bonus may be used in conjunction with a project paying a fee in lieu of providing affordable units . No density bonus may be used with or added to another density bonus. C. As provided by the California Government Code, the Planning Commission shall grant, with appropriate findings, a density increase of at least twenty-five (25) percent above the maximum density allowed by the underlying zoning, if the project complies with one or more of the following criteria: 1. As least twenty-five (25) percent of the total units in the project, excluding the density bonus, are restricted to the rental or purchase by persons and families of low-and moderate-income; or 2 . At least ten (10) percent of the total units in the project, excluding the density bonus, are restricted to rental or purchase by low-income households; or • -2- (1804D) • 3 . At least fifty (50) percent of the total dwelling units in a housing development, excluding the density bonus, are for persons sixty (60) years of age or older, or fifty-five (55) years of age or older in a senior citizen housing development; or 4 . At least thirty-three (33) percent of the total dwelling units, excluding the density bonus, of a condominium project which is a conversion from existing apartments, are restricted to the purchase by persons and families of low- or moderate-income; or 5 . At least fifteen (15) percent of the total units, excluding the density bonus, of a condominium project, which is a conversion from existing apartments, are restricted to purchase by low-income households. D. The Planning Commission may grant a density bonus equal to fourteen (14) more units per acre than that allowed by the underlying zoning, in R2 and R3 zoning districts, provided the project complies with all of the following criteria; 1. The project is designed to be compatible with and complement the scale and character of the adjoining lands uses; 2. The project is restricted to the maximum height allowed by • the underlying zoning; 3 . Any traffic impact directly attributable to the density bonus is mitigated; and 4 . All of the bonus units are permanently dedicated to low-and moderate-income persons and/or older residents as defined herein. E. The Planning commission may grant a density bonus equal to fifty (50) percent of the maximum amount allowed in R3 and R4 zoning districts if fifty (50) percent of all of the units in the project are permanently dedicated to low- and moderate-income persons, or a bonus equal to 100 percent of all of the units in the R3 or R4 zoning districts if 100 percent of all of the units in the project are permanently dedicated to low- and moderate-income persons, if the project complies with all of the following criteria: 1. If the density bonus is more than fifty (50) percent, the maximum number of units including the bonus units shall not exceed forty (40) . • -3- (1804D) 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 46 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 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. 3-9 r + r 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 r � 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 asi.de 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 i 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. 3-13 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 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 Z Responsible Agencies: Huntington Beach CDD. Funding Source: Department Budgets. Schedules 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 t r 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. I 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 r ° 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 COD. 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 maintain.ing 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 f 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 r , 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 s 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 f 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 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; 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 CDD. 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 CDD. Funding Source: Department Budget. Schedule: Ongoing. 3-24 r S 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 r 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 s 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 COD 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 COD. Funding Source: Department Budgets. Schedule: Within one year. 3-27 G' 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 ♦ R 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 A r 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 R P 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: I) 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 $3.1 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. ) i (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.. 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 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 P 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 a 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 R + 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 A 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 R I 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 Mobil ehome 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 fi 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 f 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 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 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 9 STATE HOUSING ELEMENT REQUIREMENTS (continued) REQUIRED HOUSING ELEMENT COMPONENT REFERENCE 8. Analysis of special housing needs: Housing Elementl 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 B 3-9 4.0 HOUSING UNIT CHARACTERISTICS 4.1 Housing Growth B 4-1 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 y 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 Page 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 B 4-20 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 B 4-25 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 B4-29 33 Affordable Housing Projects within Three Miles of B 4-31 Coastal Zone 34 Employment Trends: 1980 & 1984 B5-2 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 y t LIST OF FIGURES Figure Page 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 B 7-9 . APPENDIX B City of Huntington Beach 1989 Housing Element Update Technical Data Report lop w `t, u '6 w 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 s 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 Los J Angeles pOmO�a Fwy Whittier i1 3a Los Angeles County •� _��9�re rOrange County O coI � \°G7�y C o r—j C HWY 91 Artesia S,� p �y .r• A r-f d } Anaheim 3 d Orange Long Beach i HWY 22 9os m Santa s Ana a 3� 0 .t•�y �QO p .. �o HUNTINGTON BEACH Newport Beach Laguna Beach 0 5 North scale in miles FIGUR E E 1 U15d) 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) . 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 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 I 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% HP •"'1%j !i}!'?:?ji•i?3?} i?i? i�iiii i??i �i i :%%i}F;i!:•:.t %:�.:::.}fl:Fjti ii:ii:}:i:iii? }..::.:.. .:.:::: °iFjl}}t•}::lii} i11Fi!s:E}ijFli+ :;:;?;:; :jjiil:ijjj;!!!j? %:i7Ejj? ?;:•li;.;.;;ji,l .;i;3, ? .;? a}.i.;;;;;.}!... i::::.:.I..;i.: ;;:;:•:..:: i!?}?:!:i:+:j};� s: ::?}:i}i:i:•�:;: �'it Fit°• :i;i :;il?!i;i '}I::'4'�?ii :;;;�•:: F ' }� •j?!'i ••1:•% i.i %t?}i '}I•'iii:iii }.} +%•: ;::;:•:;.!e}%t• 'r'j? j::li 1!t;:;::i i..; i:j?j.•F •:}il j?EF°•.?!: :i!#e !i i??:F %%•E?j?;i!?; :'tiiji%:}:}}j! j0i?�E ::i!!i ::i;l?:i!?%i :F:j}i;�j:�i;3Y? .i;l;?; 11};;.;?}}!F.i •j•::}•::t;.•.. ?}::, ,,.lt :.. ,;;}..;}}I :iii?}}?}t.;.;.. ?i;i j!jjjjjj i`e ij •;;}.:.?. :�;:!:;:;:;';• Orb E%?%::i%?+•r:•:. :: .. ..?ii..... •.•�i'•i• ?i ?%i!i%E:.... i%:%:•:::+?:::?:E Anaheim Coata Fountaln Hntngtn Newport Santa Wstmstr. OmngeCo. 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 S'04 ~ifs ,°• °\:r• � i�/i• °i ,'♦.♦ 198059,151 1988: 61,027 +\ f�� �•\ f1; 7LF�� % INCREASE: 3.1% e +\- •�•` NORTH / �\ 7L CENTRAL \�\ %DOWN-. �\ ,\ TOWN/ \ J•� Meadowlark �\ ,\ OLD- SOUTHEAST Airport /�\ TOWN% .\ O• ,\ / ,\ ,\ ° 1980: 58,568 c :� HAR60R/\ / `\ ,��% 1980: 29,312 `\, o +� \ 1988: 63,418' ♦�: BOLSA CHICA` +. ♦♦<J 1988: 36,073, :� \� % INCREASE: 8.3% �♦ wr••+r....■.■.......■■.■ ■■.. +i� % INCREASE 23%. \ r�`� •• Huntington ♦♦ OF (• •\ •, ♦ • Edison Company • I■ f 1988: 27,222 .•♦ B o I s a : C h i c a sea Cliff ,\ Generating tC i ♦ ♦ Plant PrCff ■ `- ♦+ �� � � "• Country,Club \ SA • J: % INCREASE: 16% •' P r.e s r e �.■� . ■ ___ r■rup o� COAST P A C F 1 C O C E A N � 3636 North ccala 1�eat FIGURE 2 POPULATION GROWTH:1980-1988 i 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% E3 1980 ■ 1988 � d i`ii'• ii i:i: a : "i;:: :i:i• i=j€ ::i:ii iiii iiii;i 0% 0-5 6-13 14-17 18-20 21-24 25-34 35-44 45-54 55-64 65+ Age Groupings B 2-5 f 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 CO��r^ ��••''\� ,Cy\ / •♦i gyp--■■■r♦ WHITES: 52,279 (85.6%) o ♦� '�� I; BLACKS: 920 (1.5%) AMER. INDIAN: 859 (1A%) ASIAN: 6,050 (9.9%)Z NORTH ,� ♦\ / �\ \ CENTRAL •\ :` OTHER: 919 (1.5%)` •,/'\ ���� ••.� • \ F SPANISH/HISPANIC: 6,103 00%) ?`� �\ '\ DOWN '\ •\ ,\ j TOWN/ •\ ` '� j. Meadowlark \ OLD- SOUTHEAST • `\ \ /•;• \ ^"POf /w\ % TOWN •\ WHITES: 56,252 (88,7%) �;••' ,\, ,� BLACKS: 634 (1.0%) HARBOR/\BOLSA CHICA` ,\ \`\ AMER. INDIAN: 571 (.9%) +� WHITES: 24,772 (91%) , .'•; WHITES: 33.028 (91.6%) ASIAN: 5,073 (8.0%) \ .� BLACKS: 191 (.7%) BLACKS: 428 (1.2%) OTHER: 888 (1.4%) O Huntington #."" AMER. INDIAN: 163 (.6%) �. ♦� �` �MER. INDIAN: 390 (1.1%\` SPANISH/HISPANIC: 4,186 (6.6%) \� �♦• Harbour .•♦ ASIAN: 1 851 (6.8%)I '� \. Edison Company '\ •• r ' \IAN: 1,473 (4.1%) venerating . �. I■ .• OTHER: 245 (.9%'1 • Sea cart OTHER: 754 (2.1%)\ v�°` °��K • ,• ♦• • Country Club Ji O SPAN 1,5423 (5.6%)�`.• t ` ■w ■ •. SPANISH/HISPANIC: 3,210 (8.9%0 .`\ M ...4...rr..r.. . .......... • HWAY r •1 FaG - --- --��` ............. COAST P A C F 1 C O C E A N 0 3636 K North scale In feel� 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 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 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 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 A n 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 e 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 sox 0 1979 40x 1988 d 30x c 2 0x Very tow Low Moderate Upper Income Group B 3-5 dF w cl, , °Fti :•'�••; c" ••-:•> /•�•=_�, MEDIAN HOUSEHOLD INCOME q. �`°,.�/%\✓•' .•.•�,\ '• .•C/,:'' CITY-WIDE. $40,375 $40■ F,l, /222 B NORTH / �\ CENTRAL •••\.\ / - •• Fti /\ 0�a •„% . '+c �\ GF ��� �\ ter`/ \ • tia�� F \% \ �Ca•\ �\ %DOWN , 5 ;• '\ % TOWN/ \ % \Meadowlark OLD- \ SOUTHEAST •s /�.• \ Airport /"\ .\ TOWN /:•'• HARBOR/\ �;� $31,024 \ $45 900 •'\ BOLSA CHICA, • �• a..r• •r................. uP• �•: a�8 .\ • Huntington •• � � • ."" 6* D~�� r, /•• Harbour • �� ,\ \ /�• •�• . '�` Edison Company i ■ •. B o I s a C h i c a • Genera tog Sea Cliff Plant P� • r■ •� Country Club \ �� J. Preserve • -_ ■ ��� • .!....r.............=..r..••_ COAST _-_ _- _- --_- H� �� ��_ P A C F 1. C O C E A N 0 3636 �C 1K North scale In lee~t FIGURE 4 MEDIAN HOUSEHOLD INCOME:1988 t 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 SC9)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 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 1004C 0 ® VERY LOW ■ LOW _ ® MODERATE o ■ UPPER D ownt ownl South east Harb orl N ort h Central Oldtown BolsaChica S u barea 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/Population 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 a 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 . 9 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 th.is 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 f . 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 T 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 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 r . 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 . S 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 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 1980-1988 12% 10% 8$S i!t'•i' u u s% C u d 436 2% Nflii `•'•i € € 0% Anaheim Co3ta Fountain HintngtnNewpM Santa W3tm9tr. Orange Co. Mesa Volley 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 . Housing 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 C(J`�F �i♦^�� y�f \ /"'`.�•> ...... 36,502 OWNERS (53.4%) 31,893 RENTERS (46.6%) 19 • ♦� ♦ fE •! 4°per / i\, 10,239 OWNERS (49.4%) • •� 10,464 RENTERS (50.6%) BpG �•.. / ■ `Fc r■ �qLF y� �:\ � NORTH / CENTRAL 15,245 OWNERS (70.9%) DOWN- ` 6,238 RENTERS (29.1%) \ j TOWN/ # Meadowlark '\ \ OLD- SOUTHEAST \ Airport TOWN �•� �s �t�° '�, ERS (31.7%) T 0° �:♦ HARQOR/\ / 6,121 OWNERS (56.8%).�..\ 4,897 OWN �% QOLSA CHICA (68 •� ■ ,J 10,533 RENTERS .3%) \ ♦/• wr w•._4,658 RENTERS (43.2%) ♦�< `c P�cr ,Ilun...lgwn '♦� Get \ '��' '\` /i Harbour • �� `\ C • Edison Company I■ i B o I s d C h i c d ,\ Generating ' ■ • ♦ Sea Cliff Plantr K Preserve # PAC,, ■ J. Country Club \ w • .. ♦♦. t _ ■ •\ • P'tCi� .r� ■.. � ♦� i ■ _�- ... • COAST .. P A C F I C O C E A N � p 3636. �ChCI North scale In Meet FIGURE 5 HOUSING TENURE:1988 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% April 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 lggntified 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 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. 84-6 of 9 1• P e '•• ♦♦•• ?J� Xrea Oakview Redevelopment A • Washington Enhancement Project ,• • South Shore Enhancement Project Liberty Enhancement Area J2 C • ♦; MeAdtonwlark Commodore Enhancement Project :♦ wr'•�................. ....� ••♦ �``�� .* �♦ • Huntin ton • ♦ G Harbour .♦ r Oldtown Enhancement Project ■ ; Generating • B o l s a Chic a ♦ ♦ Sea Cliff Plant PACIFIC ■ : • Countr Club ■ Y . 1.• Preserve `���� •; -�' ....... .. ...._,_, Townlot Enhancement Project �. � co,sr P A C F I C O C E A N 0 3636 K North scale In feet 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 the�'gr 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 de-vel.opment 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 YALUES: HUNTINGTON BEACH AND SURROUNDING AREAS 1980 $200,000 d } c $100 000 i.t:.i:.i.i;; .•..•. :::i is e......:i(.i ;�i•.•.•.:.,. ''%'% f ..i.. k $ 0 Anaheim Costa Fountain Hntngtn Newport Santa Wstmstr. OranpeCo. Mesa valley 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 $2679500 $260,136 $127,600 - $469,500 3 269 $245,000 $270,748 $129,900 - $712,400 4 111 $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 �p4 °°�aF�s /..�.\.:\ •., �- CITY WIDE TOTALS w°o,�/�,�✓.\ ♦.'\\ �;. .:y/��. No. Sold: 2,885 • ' •' ✓' ••.•' ` / Median Sales: $222 000 6 r'♦ •••♦ Jt' sly ♦\` No. Sold: 925 •••'\ �,�� •�, Median Sales:$193,900 `F"F `F;o • % NORTH / •••'\ / %\ y� CENTRAL •••�.\ / - ♦�. 1 1L.I. �\ �.� ,\.\ %DOWN 5� `F TOWN/ '\ �« Meadowlark %\ OLD- `\ SOUTHEAST Airport /"\ �\ TOWN s. \\, °�5 \ No. Sold: 944OR • 0 60L5A CHICA •j \ Median Sales: $220,000 /V No_ Sold: 4661 •: .... ;�� : P�,,��° No. Sold: 550 �\ "Harbor Median Sales:$335 000 4r, •� Median Sales: $260 500 \ • I • , � y �a ♦♦ B o I s a C h i C a \ Edison Company ♦♦ Sea Cliff Plant� P � pACtrK • ri ,•• Country Club \ J; reserve P • ♦ _ ■■.• • ♦• HIGH -- •cur—=y...... ....... ��__�:>—._--��_� --■__—��_-1 •.. WAY ...........q......� COAST I 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 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 J $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 r 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 $153,00.0 $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 t 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 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 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 F�� �' ':\ \�j •�. /.�"'� CITY-WIDE TOTALS �wc° /.\ .\ Fs'\ �.• •.:�• •�/;•' •'� No Sold: 825 �•°`•'.•••%•'•:•.,:'• `\�:•'� '.C,�'� JE j Median Sales: $158,000 No. Sold: 95 •'�.\ ��` Gas,✓ :� s, is 'LF Median Sales: $127,900 •'�.\ P� j \ � 1GF a0 •i� �, NORTH % • CENTRAL \ / N o. Sold: 191 Median Sales: $144,000 % / DOWN-, �� • ,\ \ TOWN/ P r ort SOUTHEAST �M Meadowlark Ai ♦\ OLD- \ p /^\ TOWN \ �o HARBOR/\ �:•' BOLSA CHICA, �: ,�'�J ♦\ /' .■a.•'•No. Sold: 217,,-•a .•:` ���� �,� :•, j Huntington .) r /• Harbour Median Sales: $155;000. 'l .� S Edison Company • ,■ ,� B O.I S a C h i C a ,\ Ceneratin r� �1 ♦ Sea Cliff Plant ff1C:� J: r e s e r v e Country Club \ tft PAC • ... %. No. Sold: 322 � '\ �• _- �_ - _—_��--.......■. Median Sales: $175,000, y{01 AY ■ „`_-- ....■■■■■■■.■.• COAST P A C F 1 C O C E A N 0 3636 �C56) K North. ctel•In7 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 a 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. B4-24 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 $500 $400 tz 300 z C � v;iii} O l Z if i 8 U K $ 200 x 'v t a d I�' x r II Y 5 i 3 $ 100 t s $ Anaheim Costa Fountain Hntngtn Newport .Santa W3tm3tr. OmngeCo. Mesa Velley Beach Beach Ana B 4-26 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 pre&ented 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 CITY-WIDE MEDIAN RENT: $750 / . JAq fr� •� •r i�� ,� ,� • , ■ 'IMF qo , •\♦ % .`, NORTH / •• :� CENTRAL �\ ••'.\ \ *`�� ♦\♦\ %DOWN-' '\ `\ TOWN/ •\ �,� '\ j.� Meadowlark OLD- SOUTHEAST nirpon ♦\♦\ TOWN \` �y $770 ,�O •\ \ / \ $725 \% HARBOR/\` / ♦\ -�'r'� '\ /;.•' BOLSA CHICA ••j \. uuu Huntington .,1�.► �u• uu...■. ,•�` 1 , t •. /. Harbour ,\ I� •, r' �• I<� ` Edison Company' opany i B o I s a C h i c a Plant . a � Generatmgm sea Cliff P�,pFlC • ra �. Country Club J. Preserve ■ •� P A C F I C O C E A N p 3636 North. ccale In feel FIGURE 9 MEDIAN RENTAL RATES:1988 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 (50-8010 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) B 4-29 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 Rivermead.ows 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 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. B5-1 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 hyest Orange County subregion an employment to housing ratio of 1.44. aComparing 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 F . 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 lo'cal 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. B 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 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 1 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 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 U� C0 .,♦ ~Cr r�C, fJi �♦� ♦�.r �♦ �j• Off¢ •� Gar' : _ �` •�QJ! : . Lf r �fL �f ♦ i �Lf •♦ �f `♦� i i auado.•lmk • .+upo,l • APEA 4S �,`o • '♦ — AREA 3 i Hundn Ion / 1r ASCON Harbour �� -PROPERTY IfI f III If BOLSA CHICA Id.son Compa • Sea Cliff Cene,adng nl ; Co,m r Club 1`lanl�� p,\C6+C - AREA 2 ■ P • • I I �cH\V r� -�— COnS i hI IJ , 1 n C F I C O IN rC� North scale in feel fICU`;F 10 PF:I:VIUUSI.Y CONSTRAI.NIII I..;NI)S SUIIABLI IOR RESHANIIAL 1)IVII.UI'7.tINl 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 i TABLE 39 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) i 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 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. B7-8 i RESIDENTIAL DENSITIES UP TO 6.5 DU/AC ! UP TO 12.5 DU/ACX / I LINEAR I r-- PARK / UP TO 18.0 DU/AC i I • ■ ESHA t WETLANDSlit c - - 1 ESHA / ACREAGE SUMMARY `'-�- ` '• _ - yrt- -`— - __''- .__OPEN SPACE •s• 'ii' ors ivA ! =:'>.-- - ` LAND I.SE TYPE ACRES ,�: :� � \ �. - - ,l;;��:.�-• _ _ - _ A I \ '•� RESIDENTIAL 4123 Mc IANOS/E.HA/OPEN SPACE 1104.9 ``���>?.•;:Y%�1 ;.,,.��' LINEAR PARK/ESHA 50.9 B -_ FLOOD CONTROL CHANNEL DESIGNATED ROADWAYS 53.7 ;3.2 �'•S' !./� !'�� / ! i^ '�` -`1/ I . 1535.E -r. ;•/ \ .�L.—ter °I — �,� ; . TOTAL / .r.i ) «-_� �«r — WETLANDS S� :�: :• / - ESHA / •,;. C' C I) OPEN SPACE WETLANDS ESHA / OPEN SPACE WETLANDS ESHA OPEN Jjj?i ..��• �. SPACE/ j — ,. LINEAR PARK / ESHA WETLANDS / ESHA / OPEN SPACE _ — _ — _ f NON-NAVIGABLE `I I;OCEAN CONNECTION PACIFIC OCEAN PACIFIC OCEAN SOURCE: VALE SPECK TAYLOR (CFX K North FIGURE 11 BOLSA CHICA RESIDENIIAL,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 V 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. B 7-1 5 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 travef . 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 Amendment to the Huntington Beach Housing Element PRESERVATION OF ASSISTED HOUSING: Analysis and Programs Cotton/Beland/Associates, Inc. �G� CITY OF HUNTINGTON BEACH Final PRESERVATION OF ASSISTED HOUSING: ANALYSIS AND PROGRAMS Appendix C to the Housing Element November 16, 1992 Cotton/Beland/Associates, Inc. 747 E. Green Street, Suite 400 Pasadena, CA 91101 619 S. Vulcan Avenue, Suite 205 Encinitas, CA 92024 CITY OF HUNTINGTON BEACH PRESERVATION OF ASSISTED HOUSING: ANALYSIS AND PROGRAMS TABLE OF CONTENTS Section Page INTRODUCTION 1 INVENTORY OF UNITS AT RISK 2 COST ANALYSIS 10 COST COMPARISONS 18 RESOURCES FOR PRESERVATION 19 QUANTIFIED OBJECTIVES 22 PROGRAMS FOR PRESERVATION 22 CITY OF HUNTINGTON BEACH PRESERVATION OF ASSISTED HOUSING: ANALYSIS AND PROGRAMS LIST OF TABLES Page Table 1 Assisted Housing Inventory 3 Table 2 Monthly Basic Rents for Section 8 Units 9 Table 3 Monthly Rents for Mortgage Revenue Bond Units 10 Table 4 Costs of Transferring Ownership/ Purchase of Similar Units 13 Table 5 Estimated Tenant Profile of At-Risk Units 16 Table 6 Replacement Costs Per Unit 17 LIST OF FIGURES Figure 1 Process for Prepayment Eligible Projects Under LIHPRHA 7 INTRODUCTION The Huntington Beach Housing Element was adopted in July, 1990 as part of the 1989-1994 update cycle for jurisdictions in the SCAG region. The State Department of Housing and Community Development has determined the Element to be in compliance with State law. This report amends the Huntington Beach Housing Element, and will be integrated within the Housing Element upon the next periodic review of the Element in 1994. The purpose of this amendment is to bring the Housing Element into compliance with a recent amendment of housing element law, codified in Government Code Section 65583 (a)(8), (c)(6). Under this law, jurisdictions must evaluate the potential for currently rent restricted low-income housing units to convert to non-low-income housing and propose programs to preserve or replace those units. Consistent with State requirements, this report includes the following five components: 1. An inventory of restricted low-income housing projects in the City and their potential for conversion; 2. An analysis of the costs of preserving and/or replacing the units "at- risk" and a comparison of these costs; 3. An analysis of the organizational and financial resources available for preserving and/or replacing the units "at risk"; 4. Quantified objectives for the number of "at-risk" units to be preserved; 5. Programs for preserving the "at-risk" units. The State requires that the analysis include projects that are at risk of converting during the next two five-year Housing Element update periods. For Huntington Beach, this period extends from July 1, 1989 to July 1, 1999. 1 INVENTORY OF UNITS AT RISK This section identifies the low income housing units at risk of converting to non- low income housing uses prior to July, 1999 and evaluates the likelihood of conversion. The inventory includes all multi-family rental units assisted under federal, state, and/or local programs, including HUD programs, state and local bond programs, redevelopment programs, and local in-lieu fees, inclusionary, density bonus, or direct assistance programs. The inventory covers all units that are eligible to change to non-low income housing uses due to termination of subsidy contract, mortgage prepayment, or expiring use restrictions. The inventory was complied by interviews with City staff, the County Housing Authority, HUD, and review of "Inventory of Federally Subsidized Low-Income Rental Units at Risk of Conversion" (California Housing Partnership Corporation), and "The Use of Housing Revenue Bond Proceeds - 1990", (California Debt Advisory Commission). Table 1 presents an inventory of all low-income assisted rental housing in Huntington Beach. The City has nine subsidized rental housing projects in its jurisdiction; eight of these projects contain units that are eligible to convert to non-low income uses before July 1, 1999. Only one project - Huntington Villa Yorba - is at risk of conversion prior to July 1, 1994. Surfside Villas is a 75-unit family housing project assisted under HUD's Section 221(D)(4) program with a 20-year Section 8 contract due to expire in the year 2002. Projects financed under the Section 221(D)(4) market rate program alone have no binding income use restrictions. Affordability for Surfside Villas is, however, controlled by the 20-year Section 8 contract. When the contract expires in the year 2002, the owner of Surfside Villas can choose to opt out of Section 8 program as long as a Notice of Intent is filed one year prior to contract expiration. The conversion potential and costs of preservation associated with this project will be analyzed in detail in the next Huntington Beach housing element update. TABLE 1 CITY OF HUNTINGTON BEACH ASSISTED HOUSING INVENTORY Length of Affordability Earliest Total N Type(s)of Controls Potential N of Units of Units Tenant Type Proj. Name Owner: Gov't (including Conversion Subject to in (i.e.Elderly, At-Risk Units Dale Address Name, Address Assistance Sec. 8) Date(s) Conversion Project Family) Bedroom Mix Built Condition Huntington Villa Yorba Huntington Villa Assoc. HUD 40-year mortgage; 9/93 198 198 Family 21 -1 br 1965 Good 16000 Villa Yorba 1800 Ave of the Stars, 236(J)(1) 20-year prepay- 157 -2br Huntington Beach Ste. 1400 ment option 20 -3br CA 92648 Los Angeles, CA 90067 Huntington Beach Huntington Beach HUD 40-year mortgage; 4/15/96 66 66 Family 15- for 1975 Good Gardens Gardens 236(J)(1) 20-year 33-2br 16900 Algonquin c/o Southwest prepayment option 18-3br Huntington Beach Development Co. CA 92648 260 Maple Cl. Ste. 205 Ventura, CA 93003 Section 8 6/25/94 6 66 Wycliffe Gardens Wycliffe Assoc. HUD 231 40-year mortgage; — — 185 Elderly 185-1 br 1981 Very Good 18765 Florida Ave. 202 S. Prospect Ave. No prepayment Huntington Beach Orange, CA 92669 option CA 92648 Section 8 15-year contract 3/12/96 185 185 Seabridge Villas JMB Institutional City Multi- 10-year 2/95 69 344 Family 56-for 1984 Very Good 20251 Cape Coral Ln 875 N. Michigan Ave., Family 13-2br Huntington Beach Ste. 3900 . Revenue CA 92648 Chicago, 1160611 Bond Harbor Gateway Lincoln Property City Multi- 10-year 10/95 20 102 Family 14-1 br 1986 Very Good 4691 Warner Ave. 17011 Beach Blvd. Family 6-2br Huntington Beach Ste. 1400 Revenue CA 92648 Huntington Beach, CA Bond 92647 TABLE 1 CITY OF HUNTINGTON BEACH ASSISTED HOUSING INVENTORY (continucd) Length of Affordability Earliest Total N Type(s) of Controls Potential N of Units of Units Tenant Type Proj. Name Owner: Gov't (including Conversion Subject to in (i.e. Elderly, Al-Risk Units Date Address Name, Address Assistance Sec. 8) Datg(s) Conversion Pro11'ect Family) Bedroom Mix Built Condition Rivermeadows Fritz Hoelscher City Multi- 10-year 10/95 31 152 Family 31 - 1 br 1985 Very Good 8945 Riverbend 4665 MacArthur Ct. Family Huntington Beach Ste.275 Revenue CA 92648 Newport Beach, CA Bond 92660 Huntington Village William Lyon &Assoc. City Multi- 10-year •11/96 23 114 Elderly 23- for 1986 Very Good 16171 Springdale 4921 Birch St. Family Huntington Beach Ste 101 Revenue CA 92648 Newport Beach, CA Bond 92660 Huntington Breakers c/o August Financial City Multi- 10-year 7/99 68 342 Family 25-studio 1984 Good 21270 Beach Blvd. Corp. Family (Project refinanced 36- 1 br Huntington Beach P.O. Box 22630 Revenue in 1989) 7-2br CA 92648 Long Beach, CA 90801 Bond Surlside Villas Goldrich &Kest HUD — — 0 75 Family 31 -2br 1982 Very Good T795 Neptune 5150 Overland Ave. 221(D)(4) 22-3br Huntington Beach Culver City, CA 22-4br CA 92648 902350 Section 8 20-year contract 6/15/02 75 75 Source: Compiled by Colton/Boland/Associates,April, 1992. Description of At-Risk Projects Huntington Beach has three federally assisted rental housing projects at risk of conversion prior to July, 1999. Two projects -- Huntington Villa Yorba and Huntington Beach Gardens -- are subsidized under the Section 236(J)(1) program and are eligible for mortgage prepayment. Under this program, projects receive reduced interest mortgage loans from HUD in exchange for low-income use restrictions on all units in the project. Projects carry 40-year mortgages with the option to prepay the loan after 20 years and opt out of the affordability controls. The earliest potential conversion date for the 198-unit Huntington Villa Yorba project is May, 1993 and April, 1996 for the 66-unit Huntington Beach Gardens project. The other "at-risk" HUD project in Huntington Beach is Wycliffe Gardens. Wycliffe Gardens is a 185-unit Section 231 elderly housing project which is not eligible to prepay its mortgage. However, Wycliffe Gardens maintains a Section 8 contract for all 185 units. The Section 8 contract is due to expire in March, 1996. In addition to the three at-risk HUD projects, Huntington Beach has five rental housing projects assisted under the City's Multi-Family Mortgage Revenue Bond Program - Seabridge Villas, Harbor Gateway, Rivermeadows, Huntington Village, and Huntington Breakers. Under this program, the City.provides preferential financing for multi-family rental housing projects in exchange for ten-year low- income use restrictions on 20 percent of the units in each project. According to the bond agreements, a total of 211 units in the City's five bond projects are rent-restricted, although 240 units are currently renting to lower income households. The 1991 low-income limit utilized in the bond projects is based on a HUD median family income of $52,200 for the Anaheim-Santa Ana region. Low-income units in the City's five bond projects are subject to the following expiration dates. Seabridge Villas is a 344-unit housing project with 69 units set- aside for lower income households. Use restrictions on Seabridge Villas are eligible to expire in February, 1995. Harbor Gateway is 102-unit housing project, with 20 rent-restricted units. Use restrictions on these units are eligible to expire in October, 1995. The 152-unit Rivermeadows has 31 rent-restricted units. Use restriction on this project will expire in October, 1995. Huntington Village is a 114-unit project for elderly. Twenty-three units in Huntington Village are subject to low-income use restrictions due to expire in November, 1996. Huntington Breakers is a 342-unit project built in 1984 with 68 rent-restricted units. The project owner refinanced the bond with the City in 1989, and extended affordability controls until July, 1999. 5 Conversion Potential A total of 660 low-income units (25 studio, 381 one-bedroom, 216 two-bedroom, and 38 three-bedroom units) are at risk of losing some form of public rental assistance in Huntington Beach prior to July, 1999. The likelihood that the "at risk" units will convert to market rate will depend primarily on the availability and attractiveness of incentives encouraging their continued use as low-income housing. This section analyzes the potential for conversion based on the legal provisions and incentives regulating the affordability of these units. HUD Mortgage Prepayment Eligible Units: A total of 264 rental units in Huntington Beach are at risk of converting to non-low-income use through the process of prepaying HUD Section 236 loans. Prepayment of Section 236 loans was regulated by the provisions of the Emergency Low-Income Housing Preservation Act (ELIHPA), otherwise known as Title II of the Housing and Community Development Act of 1987. This legislation was subsequently replaced in 1990 by the Low-Income Housing Preservation and Resident Homeownership Act (LIHPRHA, or Title VI of the National Housing Act of 1990). If the owner was eligible for prepayment before September 30, 1991 and filed a "Notice of Intent" to prepay between November 1987 and December 31, 1990, then the owner has the option to use either ELIHPA or LIHPRHA. Project owners must have decided which laws to use by February, 1992. After this date, owners are only eligible to use LIHPRHA, which became effective on May 8, 1992. Given the potential conversion dates of Huntington Villa Yorba and Huntington Beach Gardens as indicated in Table 1, prepayment of both projects will be regulated by LIHPRHA. Figure 1 illustrates the process for prepayment eligible projects under LIHPRHA. Under LIHPRHA provisions, owners of prepayment eligible projects can choose to retain project ownership in exchange for additional federal incentives, or sell .their properties under a voluntary sale program. Where=owners choose to sell, tenants, non-profit and governmental entities are provided with an exclusive 12-month negotiating period. Prepayment and conversion of the housing to non-low-income use can only occur if there is no willing buyer to purchase a project. A Notice of Intent may be filed up to two years prior to the scheduled prepayment date to indicate the owner's preliminary decision regarding sale of property versus stay-in as low-income. Within nine months after filing the Notice �of Intent, the owners must prepare a "Plan of Action" for submittal to HUD. A Plan of Action must include: any proposed changes in the mortgage or in the regulatory agreements; a description of federal, state, and local incentives that are being requested as part of the effort to own and develop the property; and any proposed plans to transfer the title of the property and/or sell. More specifically, LIHPRHA provides the owners of eligible projects an opportunity to receive additional federal incentives for projects, enabling them to raise rents and refinance a portion of their equity, while extending low-income use restrictions for the remaining useful life of the project. The useful life of a 6 HUD Projects 1 to LIHPRHA in Huntington Beach Huntington Villa Yorba (Section 236(J)(1)) Huntington Beach Gardens (Section.236(J)(1)) ProjectOwner Files Noticeof Option 1: Continue low-income restrictions >s with HUD incentives Option 2: Sell to non-profit or government entity Option 3: Prepay mortgage and convert to market rate housing 9 Months Project Owner Files Plan of • i i OPTION OPTION •% y Continue low-income Selltonon-profit ER" restrictionsor government >s .y - Rent increases -Additional Section 8 subsidies -241(f) equity take-out loan 12 Months 6 months for HUD and Public Review Renegotiate -? s Negotiations with to extend income use 5 No bona fide restriction for the usefull HUD fail offer { fife of the building MM OPTION Note: Refer to page 7 for discussion of Prepay m• • . • - 1. LIHPRHA- Low Income Housing 1 convert • market >s Preservation and Resident y Homeownership Act rate housing P. ..............:..,.... Figure 1 Process for Prepayment Eligible Projects Under LIHPRHA project refers to the expected physical life of a building with normal maintenance and repairs, as well as replacement of utilities such as plumbing. HUD officials have indicated that the useful life of a building is usually 70 years. Thus, use restrictions will be extended for an additional 50 years if owners decide to maintain the projects as low-income under LIHPRHA. HUD will establish standards and procedures for determining when the useful life of a building expires. Under LIHPRHA, the difference between the tenants' portion of the rent (30 percent of income) and market rent in Section 236 projects is covered by a Section 8 contract for both very low and low-income tenants. Section 8 Units: Huntington Beach Gardens maintains a Section 8 contract for six of the project's 66 units. Potential expiration date for this Section 8 contract is in June, 1994. Wycliffe Gardens maintains a Section 8 contract for all of the project's 185 units. The Section 8 contract for Wycliffe Gardens will be eligible to expire in March, 1996. Basic rent levels. are established for each project with a Section 8 contract with HUD. Basic rent is the maximum Fair Market Rent for an apartment unit. It is the maximum amount of rent an owner can collect on a unit from 30 percent of the tenant's income combined with Section 8.subsidies from HUD. As shown in Table 2, both.Huntington Beach Gardens and Wycliffe Gardens are receiving substantially lower basic rents than average market rate rents in the City or than the maximum Fair Market Rents for Orange County. The projects can potentially command higher rents if the owners decide to opt out of the Section 8 program and convert to market rents. The underlying Section 236 mortgage on Huntington Beach Gardens. is subject to LIHPRHA (described above). Under LIHPRHA, project owners can request additional financial incentives from HUD if they choose to extend the length of affordability controls on the project. As long as use restrictions on the Section 236 mortgage or an approved Plan of Action pursuant to LIHPRHA are in effect, the Section 8 contract is likely to be renewed. Therefore, the potential expiration of the Section 8 contract for Huntington Beach Gardens will be dependent upon the negotiations on the Plan of Action between HUD and the property owners. Wycliffe Gardens is funded under HUD's Section 231 program. Low-income use restrictions on the project are locked-in for the full 40-year mortgage term which is not due to expire until April, 2021. Also, as the project is owned by a non- profit entity, its long-term affordability is fairly secure. Discussion with the management of Wycliffe Gardens indicates that the project owners will continue to renew the Section 8 contract. 8 TABLE 2 MONTHLY BASIC RENTS FOR SECTION 8 UNITS Basic Rent (Maximum Fair Market Rent (2) by Pro'ect) Huntington (3) Beach . Orange County Huntington Average Market Maximum Fair Unit Size Beach Wycliffe Rents Market Rent Gardens 1 Gardens 1 One-bedroom $281 $527 $755-$990 $ 764 Two-bedroom $317-$329 - - $700-$1,025 $ 900 Three-bedroom $361-$510 ---- $85041,260 $1,125 Source: Compiled by Cot ton/Beland/Associates, May, 1992. Notes: (1) As reported by building managers of Huntington Beach Gardens and Wycliffe Gardens, May, 1992. (2) Survey of rental rates by the City of Huntington Beach, July, 1992. Beach. (3) Orange County Housing Authority, May, 1992. This HUD Fair Market Rents schedule includes utility costs to be paid by tenants. Mortgage Revenue Bond Units: A total of 211 low-income units (25 studio, 160 one-bedroom, and 26 two-bedroom units) in five bond projects are at risk of converting to non-low-income use prior to July, 1999. Table 3 presents the differentials in rental rates between the rent-restricted and market-rate units in each of the five multi-family mortgage revenue bond projects in Huntington Beach. By analyzing the potential increase in rents achievable through conversion to market rate, the relative incentive for conversion can be assessed. The difference between rental rates in market rate and rent-restricted units are more significant in Seabridge Villas, Harbor Gateway, and Huntington Breakers than in Rivermeadows and Huntington Village. Rent differentials between restricted and unrestricted units are most significant in Seabridge Villas, ranging potentially from $175 to $275 for a one-bedroom unit and $190 to $325 for a two-bedroom unit. Rent differentials in Huntington Breakers can potentially range from $110 for a studio unit, $150 to 175 for a one-bedroom, and $160 to $185 for a two-bedroom units. In Harbor Gateway, the maximum rent differential is $150 for a one-bedroom unit. Given the rental rates shown in Table 3, there are definite monetary incentives for the owners of Seabridge Villas, Harbor Gateway, and Huntington Breakers to convert their units to market rate. If there were a conversion, the economic impacts on the low- income tenants in these three projects would be significant. 9 TABLE 3 MONTHLY RENTS FOR MORTGAGE REVENUE BOND UNITS Rent-Restricted Units (1) Market Rate Units (2) Project Studio 1-Bdrm 2-Bdrm Studio 1-Bdrm 2-Bdrm Seabridge Villas ---- $700 S875 ---- $875-$990 $1,06541,200 Harbor Gateway ---- S875 $975 ---- $925-$1,025 $1,025 Rivermeadows ---- $750 ---- ---- $790-$860 ---- Huntington Village ---- $710-$725 ---- ---= $755-$778 ---- Huntington Breakers $625 $750 $985 $735 $900-$925 $1,14541,170 Rental Range $625 $700-$875 $8754985 $735 $755-$1,025 $1,02541,200 Source: Compiled by Cot ton/Beland/Associates; May, 1992. Notes: (1) Compiled from Yearly Housing Bond Issuance Reports for Fiscal Year 1990-91, and updated by telephone interviews with building management of each project. (2) Compiled from telephone interviews with building management of each project and supplemented with information provided by the City of Huntington Beach. COST ANALYSIS The following discussion examines both the cost of preserving the units at risk in Huntington Beach ,and the costs of producing new rental housing comparable in size and rent levels to replace the units which could convert. A cost estimate has been developed for each option based on information provided from the County Housing Authority, the project's management company, and local developers. Actual costs involved in each option will also depend on the rental and real estate market situations at the time the low-income use restrictions on the projects expire. Preservation Costs Preservation of the at risk units can be achieved in different ways depending on the financing mechanisms used and the legal provisions and incentives regulating the affordability of these units. Options available for the preservation of the at- risk units include: 1) preserve the projects as low-income by offering additional federal incentives to the projects; 2) facilitate the transfer of ownership of these projects to or purchase of similar units by non-profit organizations; 3) refinance mortgage on projects to extend affordability controls; or 4) assist qualified 10 tenants in obtaining Section 8 certificates from the Orange County Housing Authority. All but the refinancing option are applicable to HUD prepayment eligible projects. At-risk units primarily subsidized with Section 8 contracts may be preserved by transferring ownership, purchasing similar units, or using Section 8 certificates. At-risk units in City mortgage revenue bond projects may be preserved by purchasing similar units, using Section 8 certificates, or refinancing the bonds. The following estimates the costs associated with each option for at- risk projects in Huntington Beach. Continue as Low-Income with Federal Incentive's: Under LIHPRHA, HUD mortgage prepayment eligible projects may choose to continue as low-income in exchange for additional federal incentives. Incentives include: rent increases to guarantee an eight percent return on project investment; Section 8 contract to cover both very low and low-income tenants; and 241(f) equity take-out loan. Once extended, affordability controls on the project will remain effective for the remaining useful life (approximately an additional 50 years) of the project. HUD has established the Federal Cost Limit to determine a project's eligibility for full federal incentives. As long as a project's annual preservation rent (eight percent return on equity, debt services on rehab loan and HUD first mortgage, operating expenses, and reserves combined) does not exceed the Federal Cost Limit, the owner may file a Plan of Action for Full federal incentives. Under LIHPRHA, the Federal .Cost Limit is currently set at 120 percent of the Section 8 Fair Market Rent or 120 percent of the local market area rent, whichever is greater. As previously shown in Table 2, Section 8 Fair Market Rents in Huntington Beach are substantially lower than market rents. Using Fair Market Rents as estimates, monthly Federal Cost Limit for Huntington Villa Yorba is at least $2,158,128 and for Huntington Beach Gardens is $736,920. The actual cost comparison to determine eligibility for federal incentives will be performed by HUD officials when the project owners file a Notice of Intent. Transfer Ownership/Purchase of Similar Units: Another preservation option is to transfer ownership of the projects with at risk units to community-based non- profit or government entity, such as the Orange County Housing Authority. By transferring the ownership of these projects to non-profit housing organizations, low-income use restrictions can be secured, and the projects will become eligible for a greater range of government assistance programs. However, transfer of ownership is more likely an option for HUD prepayment eligible projects than for City bond projects. Because the bond-financed projects contain only 20 percent rent-restricted units, it is unlikely that the current owners would choose to sell these projects at rates affordable to non-profit entities. Therefore, with respect to bond-projects, it would be more feasible to purchase 11 similar existing units by non-profits. Also, since Wycliffe Gardens is already owned by a non-profit organization, the following analysis is only relevant to the other seven projects with at-risk units. Assessed value for a piece of property is established primarily for tax purposes. Re-assessment of property value occurs only when there is a transfer of ownership; otherwise, inflation on the assessed value is capped at an annual rate of two percent. Therefore, a property's assessed value is usually lower than its current market value. However, with the absence of current market value information on the at-risk projects, current assessed values shown in Table 4 are used to establish an order of magnitude reference for estimating preservation costs. Given the good condition of the at-risk projects, maintenance costs are likely to be low. Therefore, it is assumed that rental income and HUD Section 8 subsidies will defray monthly mortgage and maintenance costs. Under LIHPRHA, HUD will provide mortgage loan insurance on acquisition loans for up to 95 percent of the equity to priority purchasers. If, theoretically, Huntington Villa Yorba and Huntington Beach Gardens were sold to qualified non-profits prior to extending the 20-year mortgages with the current owners, total preservation cost for these two projects would amount to $4,595,047, the sum of their valuations. A total downpayment cost of $229,752 would be required - $158,822 for Huntington Villa Yorba and $70,930 for Huntington Beach Gardens. Assuming a 10 percent downpayment to purchase,existing units similar to the at- risk units in the bond projects, the potential buyers will need to secure mortgage loans totaling $15,671,658 and total downpayments of $1,741,296, for the purchase of units similar to those in Seabridge Villas, Harbor Gateway, Rivermeadows, Huntington Village, and Huntington Breakers. Table 4 summarizes the estimated costs associated with transfer of ownership of each project. 12 TABLE 4 COSTS OF TRANSFERRING OWNERSHIP/PURCHASE OF SIMILAR UNITS At-Risk Units Assessed At-Risk Units Mortgage Project Value Downpayment Loan Huntington Villa Yorba Rent-Restricted Units (100070) $ 3,176,447 $158,822 $ 3,017,624 Huntington Beach Gardens Rent-Restricted Units (100%) $ 1,418,600 $ 70,930 $ 1,347,670 Seabridge Villas Entire Project $38,338,740 Rent-Restricted Units (2007b) $ 7,667,748 $766,775 $ 6,900,973 Harbor Gateway Entire Project $ 8,149,137 Rent-Restricted Units (20%n) $ 1,629,827 $162,983 $ 1,466,844 Rivermeadows Entire Project $16,402,832 Rent-Restricted Units (20%) $ 3,280,566 $328,057 $ 2,952,509 Huntington Village Entire Project $ 6,935,141 Rent-Restricted Units (2007b) $ 1,387,028 $138,703 $ 1,248,325 Huntington Breakers Entire Project $17,238,920 Rent-Restricted Units (2076) $ 3,447,794 $344,778 $ 3,103,006 Total Rent-Restricted Units $22,008,000 $1,971,048 $20,036,952 Source: Current assessed values obtained from the Orange County Assessor's Office, May, 1992. 13 Refinance Mortgage Revenue Bond: Another option to preserve the low-income use restrictions on the five City multi-family housing bond projects is to refinance the mortgage revenue bonds that were issued to the respective owners. If refinanced, the projects would be required by the 1986 Tax Reform Act to commit their 20 percent low-income units for the greater of 15 years or as long as the bonds are outstanding. City records indicate a bond total of $25,000,000 was issued to Seabridge Villas, $8,165,000 to Harbor Gateway, $10,000,000 to Rivermeadows, $7,700,000 to Huntington Village, and $16,000,000 to Huntington Breakers. To ensure the affordability of the 211 bond-financed income restricted units in Huntington Beach, the City can negotiate with the project owners to refinance the bonds. The costs to refinance each bond would therefore include the difference in interest rates on the remaining debt between the previous and the renegotiated bond packages, an issuance cost which amounts to approximately 3 percent of the bond to be paid upfront by the City, and administrative costs. Project owners may not have a financial incentive to refinance unless the bond structures allow for interest rates that are well below rates on the initial bonds, and are combined with other incentives. More often, property owners prefer to either sell the property or to seek refinancing opportunities from private lending institutions and therefore be able to opt out of affordability controls. The ten-year use restrictions on the Huntington Breakers low-income units were initially eligible to expire in 1994. The City refinanced the mortgage on Huntington Breakers in 1989 and extended the use restrictions on 20 percent of the units for an additional 5 years until 1999. The City has experience and technical expertise in bond refinancing and has expressed the intention to preserve the at-risk units in bond projects by encouraging bond project owners to refinance. The City's Redevelopment Housing Set-Aside fund could be used to refinance mortgage revenue bonds. Rent Subsidy: When the low-income use restrictions on the at-risk units expire and units are converted to market rate, Section 8 certificates can be used to subsidize the property owners for extending the affordability of those units. Under the Section 8 certificate program, HUD pays owners the difference between what tenants can pay (defined as 30 percent of household income) and what HUD and the local Housing Authority estimate to be Fair Market Rent on the unit. Section 8 certificates are only available to very low-income households - households earning less than 50 percent of the County median income. The 1992 HUD median income for the Anaheim-Santa Ana region is $52,700. Assuming the average very low-income household has an income at 30 percent of the regional median income, the average income of Section 8 recipients in Orange County would be $15,810. Under these assumptions, monthly housing costs affordable to Section 8 recipients are estimated to be approximately $395 (based 14 on HUD's definition of affordable housing costs as 30 percent of household income). According to the Orange County Housing Authority, Fair Market Rent is $630 for a studio unit, $764 for a one-bedroom unit, $900 for a two-bedroom unit, and $1,125 for a three-bedroom unit. Thus, the difference between housing cost affordable to very low-income households and the Fair Market Rent is $235 for a studio unit, $369 for a one-bedroom unit, $505 for a two-bedroom unit, and $730 for a three-bedroom unit. Because Section 8 certificates are only available to very low-income households, use of Section 8 subsidies as a means of extending affordability controls on the City's at-risk units would not benefit tenants that are low-income. Table 5 estimates the number of very low income tenants in each at-risk project. Approximately half (328) of the rent-restricted units are currently occupied by very low-income households. Given the bedroom mix in each project and the distribution of very low-income households as shown in Table 5, there are an estimated four studio, 227 one-bedroom, 85 two-bedroom, and 12 three-bedroom rent-restricted units currently occupied by very low-income households. Section 8 subsidies required to maintain the affordability of these units would be approximately $136,388 monthly, or $1,636,656 annually. Furthermore, the Orange County Housing Authority Section 8 program has a waiting list of over 15,500 applicants and a waiting period of two to eight years. The County Housing Authority Section 8 program has closed applications since November, 1991, though it plans to reopen later this year. 15 TABLE 5 ESTIMATED TENANT PROFILE OF AT-RISK UNITS Total Lower- Very Low-Income Low-Income Income Project Households Households Households HUD Projects Huntington Villa Yorba 99 99 198 Huntington Beach Gardens 6 60 66 a Wycliffe Gardens 185 0 185 Bond-Financed Projects Seabridge Villas 10 59 69 Harbor Gateway 2 18 20 Rivermeadows 4 27 31 Huntington Village 12 it 23 Huntington Breakers 10 58 68 Total 1 328 332 660 Source: Compiled by Cotton/Beland/Associates, May, 1992. Note: The Yearly Housing Bond Issuance Reports include the number of very low and low- income households currently residing in the projects. In several instances,. there are more lower income households in these projects than the required 20 percent. The distribution of very low and low-income households shown in this table has been adjusted to reflect only the 20 percent requirement, assuming half of the households currently classified as very low-income under the bond program may not qualify for Section 8 subsidies. Also, the table assumes half of the tenants in Huntington Villa Yorba are very low-income households. 16 Replacement Costs This section analyzes cost of constructing new low-income housing units to replace the 660 assisted units in HUD and bond projects in Huntington Beach should they be converted from low-income uses. The cost of developing new housing depends upon a variety of factors such as density, size of the units (i.e. number of bedrooms), location and related land costs, and type of construction. Table 6 shows the average per unit development cost by unit type in Huntington Beach. Based on estimates by City staff, per unit development cost in Huntington Beach is approximately $111,710 for a studio, $122,954 for a one- bedroom, $140,080 for a two-bedroom, and $153,553 for a three-bedroom unit. These estimates are based on a construction cost of $63 per square foot and include permit processing fees, infrastructure connection fees, and impact fees. Using the per unit cost estimates shown in Table 6, the cost to replace the 660 assisted units in Huntington Beach would run approximately $85,730,548, requiring a minimum downpayment of $8,573,055. This amount is substantially higher than the $22,008,000 preservation cost and related $1,971,048 downpayment under a transfer of ownership scenario, the $1,636,656 annual Section 8 subsidies, or the costs (plus administrative fees) to refinance the bonds. TABLE 6 REPLACEMENT COSTS PER UNIT Average Construction Total Unit Ty ype Unit Size Land Cost/Unit Cost/Unit Costs/Unit Studio 500 sq. ft. $75,000 $36,710 $111,710 One-bedroom 650 sq. ft. $75,000 $47,954 $122,954 Two-bedroom 900 sq. ft. $75,000 $65,080 $140,080 Three-bedroom 1,100 sq. ft. $75,000 $78,553 $153,553 Source: City of Huntington Beach, July, 1992. Note: Per unit costs are estimated on the basis of minimum sizes according to the City's Zoning Code. Cost estimates include: permit fees for building, electrical, plumbing and mechanical permits; impact fees for parks and recreation, schools, library, and traffic; and infrastructure connection and impact fees for sewer (City), sewer (County), water, and water conservation. 17 COST COMPARISONS Ownership transfer usually involves the project in its entirety and thus, is more likely to be used by HUD prepayment eligible projects rather than bond projects where only a portion of the project units are reserved for lower-income households. Also, the costs of transferring ownership of a project to a public or non-profit agency are based on the projects' current values, which are usually marked-up to incorporate inflation and profit for the existing owners. Purchase of similar units by non-profit organizations is also costly and purchasing opportunities cannot be guaranteed. The total cost to preserve the 660 at-risk units in Huntington Beach or to maintain the assisted housing stock by means of transferring ownership and purchasing similar units is estimated at $22,008,000, with a total downpayment cost of $1,971,048. Use of Section 8 subsidies has several drawbacks. First, only very low income households are eligible, rendering only 328 households of the total 660 at-risk households in the City eligible for assistance. In addition, rent subsidies do not ensure long-term unit affordability. The costs associated with rent subsidies are high, requiring approximately $1,636,656 annually. HUD is committed to providing subsidies for the preservation of the federally assisted units. For prepayment eligible projects, the most cost-effective option is to encourage the owners to maintain the projects as low-income with federal incentives. Because the costs to refinance an existing bond under the current owner(s) are based primarily on the outstanding debt, refinancing the existing bond is probably the least costly preservation option for bond-financed projects. In 1989, the City refinanced the mortgage on Huntington Breakers using a variable interest rate. The City can use a similar approach to refinance other bond projects and preserve the at-risk units. 18 RESOURCES FOR PRESERVATION This section discusses two types of resource available for preserving "at risk" units: a) financial resources potentially available to purchase or supplement existing units, or to build replacement housing, and b) entities with the interest and ability to purchase and/or manage replacement units. Financing/Subsidy Resources There are a variety of potential funding sources available for potential acquisition, subsidy, or replacement of units at risk. Due to both the high costs of developing and preserving housing and limitations on both the amount and uses of funds, a variety of funding sources may be required. HUD Funds: Under LIHPRHA, HUD will provide the owners of Huntington Villa Yorba and Huntington Beach Gardens with incentives which enable them to raise rents and refinance a portion of their equity, while extending low-income use restrictions for the remaining useful life of the projects (approximately 50 additional years). The difference between the tenant's portion of the rent and market rent will be covered by Section 8 contracts. Should a nonprofit instead take ownership of the project, the following HUD incentives.would be offered: Mortgage insurance for acquisition loans for 95 percent of equity. Project-based Section 8 contracts, with HUD-subsidized rents set at levels high enough to provide an eight percent return to owners who retain the project or to cover debt service on an acquisition loan for new purchasers; Grants to non-profit buyers that would fill any gap between fair market rent or local market rent (whichever is higher) and allowable rents. Redevelopment Set-Aside: The City's Redevelopment Agency has accumulated approximately $3,000,000 in the Redevelopment Housing Set Aside Fund, available for future affordable housing activities. The Housing Set Aside Fund can be used for a variety of affordable housing construction and preservation activities including: land disposition and write-downs, site improvements, loans, grants, issuance of bonds, land and building acquisition by Agency, direct housing construction, housing rehabilitation, rent subsidies, redevelopment funds, and administrative costs for non-profit housing corporations. The City is in the process of developing programs and guidelines for the expenditure of the Housing Set Aside Fund. The Set-Aside Fund can potentially be a significant funding source for the preservation of assisted housing. 19 CDBG Funds: Through the Community Development Block Grant (CDBG) program, HUD provides funds to local governments for funding a wide range of community development activities. As an entitlement jurisdiction, Huntington Beach receives CDBG monies directly from HUD which the City utilizes for a variety of housing and social service activities. For Fiscal Year 1991-92, the City anticipates to receive approximately $2,004,947 of CDBG funds, of which $700,000 is committed to housing rehabilitation and $85,650 is committed to homeless services and facilities. The City can potentially direct a portion of the uncommitted CDBG funds toward the preservation of assisted housing. General Revenues: The City does not currently fund housing programs out of general revenue funds and, consequently, does not have any general revenue funds set aside for housing. Housing Authority Reserves: Other potential sources of funding are the reserves of housing authorities. The Orange County Housing Authority currently has roughly $8.5 million to use to provide housing opportunities throughout the County. This money is subject to some restrictions and priority is given to projects which provide for the leverage and recycling of funds. Orange County Affordable Housing Clearinghouse: The Orange County Affordable Housing Clearinghouse is a consortium of lending institutions and community groups focused on providing funds for affordable housing through team lending. Sixteen lending institutions are currently members of the coalition. Because the coalition is new and is still in the process of being set up, it does not currently have a track record in the community. However the financial assets and expertise of coalition members suggest that this should be a significant source of funds for low-income housing in Orange County in the future. Administrative Resources An.alternative to providing subsidies to existing owners to keep units available as low income housing is for public or non-profit agencies to acquire or construct housing units to replace "at risk" units lost to conversion. Non-profit ownership assures the future availability of purchased units as low-income housing. Several public and non-profit agencies are currently active or have expressed an interest in purchasing and/or managing at-risk, low-income housing projects in Orange County. The Orange County Community Housing Corporation (OCCHQ: OCCHC is the oldest and largest non-profit affordable housing developer in Orange County. With assets exceeding $6.6 million, OCCHC has been involved in 14 housing projects for very low-income large families throughout Orange County. Developments by OCCHC include: 1) Domingo Avenue Apartments (28 units), Newport Beach; 2) Berry Street Apartments (4 units), Anaheim; 3) Coffield Apartments (24 units), Dana Point; 4) Irvine Condominiums (6 units), Irvine; 5) Buena Street Apartments (28 units), Garden Grove; and 6) Keel Street Shelter 20 (8 units), Garden Grove. OCCHC participates in the management as well as the development of low income housing and has expressed interest in "at risk" units in Huntington Beach. Contact: Allen Baldwin (714) 558-6006. Civic Center Barrio Housing Corporation: Civic Center Barrio Housing Corporation also has considerable experience in, and resources for, the development and or management of low income housing. Barrio Housing owns and operates over 130 housing units in Orange County and San Diego County and has been involved in the development of over 400 affordable units. Barrio Housing has staff of three full time employees and has been operating in Orange County for 16 years. Representatives from Barrio Housing indicate that the corporation would be interested in preserving at-risk units in Huntington Beach. Contact: Alana Baker (714) 835-0406. Council of Orange County, Society of Saint Vincent De Paul: The Society of Saint Vincent De Paul provides many social services in Orange County such as food distribution and medical services. The Society is also in the process of developing a congregate housing project in Orange County and plans to continue to expand its housing operations. Including the value of donated time and goods, the Society has an annual revenue of $9.8 millon and employs a staff of 75 persons. The Society has expressed interests in preserving at-risk housing in Huntington Beach. Contact: Scott Mather (714) 633-9195. HomeAid: HomeAid is a non-profit corporation established by the Building Industry Association of Southern California to help alleviate the homeless problem in the region. The HomeAid program has a dual focus: to construct or renovate shelters for the transitionally homeless and to develop housing for lower income families and individuals. Representatives of HomeAid have expressed the agency's interest in preserving at-risk housing in Orange County. Projects completed or in progress in Orange County by HomeA.id include: 1) Thomas House (Garden Grove) - refurbishing of an eight-unit complex for homeless families; 2) Interval House (central Orange County) - rehabilitation of an existing home for battered women and their children; 3) New Vista Shelter (Fullerton) - rebuilding of an apartment building for homeless families; 4) Don R. Roth Family Center (Orange) - construction of three new duplexes for homeless families; 5) Anchor House (San Clemente) - rehabilitation of a duplex for homeless families; 6) Anaheim Interfaith Shelter (Anaheim) - refurbishing and expansion of a single-family home for homeless families; 7) Huntington Youth Shelter (Huntington Beach) - refurbishing of a historic farmhouse and addition of 12 new bedrooms for a facility to house homeless and runaway teens; 8) Santa Ana YWCA Second Stage Housing (Santa Ana) - refurbishing of a four- unit apartment building for homeless women and their children; 9) Friendship Shelter (Laguna Beach) - refurbishing and enlarging of a detached home to provide shelter for homeless men and women; and 10) Precious Life Shelter (north Orange County) - expansion and rehabilitation of a home for unwed mothers and their newborn babies. Contact: Elisha Back (714) 396-9993. 21 Southern California Presbyterian Homes (SCPH): SCPH is an experienced non- profit housing developer based in Glendale. Utilizing a variety of federal, state and local funds, SCPH has developed the following six low-income independent living facilities in Southern California: 1) Casa de la Paloma (167 units), Glendale; 2) Sycamore Terrace (100 units), Upland; 3) Park Paseo (100 units), Glendale; 4) Royal Vista Terrace (75 units), Duarte; 5) Covenant Manor (100 units), Long Beach; and 6) Guadalupe Manor (71 units), Fountain Valley. SCPH is also constructing a 22-unit affordable senior housing project funded through the City of Glendale's tax credit programs. Target residents for this project are those with limited income but not qualified for rental assistance under HUD's very low income category. Contact: Benjamin Beckler (818) 247-0420. QUANTIFIED OBJECTIVES Units at Risk of Conversion Before July 1, 1994 A total of 198 units in Huntington Villa Yorba are eligible to convert to market rate housing during this time frame. Units at Risk of Conversion Between July 1, 1994 and July 1, 1999 A total of 462 units in seven assisted housing projects are at risk of converting to non-low-income use between July 1, 1994 and July 1, 1999. It is the objective of the City to either retain or replace as low-income housing all 660 units eligible to convert between July, 1989 and July 1, 1999. A comparison of current costs of preservation and current potential resources available indicates that preservation of the "at risk" units may be feasible. The City will continue to pursue new opportunities to replace low-income restricted units lost through conversion to market rate units. PROGRAMS FOR PRESERVATION The City plans to monitor "at risk" housing units to ensure units will continue as low income housing. The two at-risk HUD projects will most likely be preserved through incentives under LIHPRHA, and affordability controls on the five bond projects can most effectively be extended through bond refinancing. To the extent these approaches are not effectuated, the City will subsidize units and/or work with non-profit housing groups in the community to explore possible new construction of replacement housing by non-profits or non-profit acquisition of 22 existing buildings with "at risk" units. The following are specific actions that the City will take to protect or replace "at risk" units. Policies and Programs Policy 1: Attempt to preserve low-income housing in the City that is at risk of converting to market rate by monitoring the status of prepayment-eligible and bond-financed projects, and identifying financial and organizational resources available to preserve these units. Policy 2: Pursue a program that would offer small developers an opportunity to purchase "at-risk" units as a means of satisfying affordable housing requirements that may be conditioned on their projects. Monitor Units at Risk: Regularly monitor the status of the at-risk projects. Pursuant to Government Code Section 65863.10, the City will inform the tenants of the status of their projects at least one year in advance of the potential conversion date. Time Frame: The earliest potential conversion dates for "at risk" projects in Huntington Beach are as follows. Project Project No. of Units Potential Nam Addres At Risk Conversion Date Huntington Villa Yorba ­16000 Villa Yorba 198 9/93 Seabridge Villas 20251 Cape Coral Lane 69 2/95 Harbor Gateway 4691 Warner Avenue 20 10/95 Rivermeadows 8945 Riverbend 31 10/95 Wycliffe Gardens 18765 Florida Avenue 185 3/96 Huntington Beach Gardens 16900 Algonquin 66 4/96 Huntington Village 16171 Springdale 23 11/96 Huntington Breakers 21270 Beach 68 7/99 Responsible Agency: Department of Community Development. Funding Source: Department Administrative Budget. Pursue Bond Refinancing: Seabridge Villas, Harbor Gateway, Rivermeadows, Huntington Village, and Huntington Breakers are financed under the City's Mortgage Revenue Bond Program. The City will coordinate with the owners of at risk projects to encourage bond refinancing to extend low income use restrictions for a minimum of 15 years starting from the issuance of the initial bonds. Time Frame: Contact project owners at least 18 months prior to expiration to express City's desire to refinance. 23 Responsible Agency. Department of Community Development. Funding Source: Department Administrative Budget, City Housing Funds. Work with Potential Priority Purchasers: Establish contact with public and non- profit agencies interested in purchasing and/or managing units at risk to inform them of the status of at-risk projects. Where feasible, provide technical assistance to these organizations with respect to financing. Coordinate with the Orange County Affordable Housing Clearinghouse in assisting priority purchasers to obtain financing. Time Frame: Establish contact by end of 1992. Responsible Agency: Department of Community Development. Funding Source: Department Administrative Budget, City Housing Funds. Facilitate Tenant Purchase of Units: Tenant purchase of at-risk units is a feasible preservation option when owners of Huntington Villa Yorba and Huntington Beach Gardens file Notices of Intent to indicate the desire to sell the projects or negotiation between the owners and HUD fail to preserve the two projects as low-income housing. The City will facilitate tenant purchase of the two projects by providing technical assistance in financing, organizing tenant . associations as priority purchasers, coordinating with non-profit housing organizations, and encouraging tenant participation in the prepayment process. The City will begin working with the Orange County Affordable Housing Clearinghouse to establish a program to provide preferential financing, and potentially downpayment assistance, for low-income tenants wishing to purchase their units. Time Frame: Begin coordination with the Orange County Affordable Housing Clearinghouse by the end of 1992. Responsible Agency: Department of Community'Development. Funding Source: HOPE and HOME grants, CDBG, Orange County Affordable Housing Clearinghouse, Housing Authority Reserves. Tenant Education: The City will work with tenants of "at risk" units in danger of converting. The City will provide tenants with education regarding potential tenant purchase of buildings and act as a liaison between tenants and nonprofits potentially involved in constructing or acquiring replacement housing. The City will also provide tenants in "at risk" projects information regarding Section 8 rent subsidies through the Orange County Housing Authority. 24 Time Frame: At least one year prior to subsidy termination, as identified in the schedule presented for monitoring units at risk. Responsible Agency: Department of Community Development. Funding Source: Department Budget, CDBG. Encourage Project Owners to Participate in Section 8 Program: If detailed analysis and negotiation with projects owners indicate that long-term rent restrictions cannot be secured on the units, the City will encourage owners to' participate in the Section 8 rent subsidy program. The City will act as the liaison between the County Housing Authority and the "at risk" project owners. The City will target this program effort to projects such as Rivermeadows and Huntington Village where differentials in rental rates between restricted and market rate units are small. Time Frame: Continually monitor status of extension of low-income use restrictions and encourage property owners to participate in the County Housing Authority Section 8 rent subsidy program immediately upon notification of owners' decision to discontinue low-income use. Responsible Agency: Department of Community Development. Funding Source: Department Administrative Budget.. Assist Tenants of Existing Rent-Restricted Units to Obtain Priority Status on Section 8 'Waiting List: The Orange County Housing Authority has established three categories of priority applicants to receive Section 8 certificates: 1) evicted or homeless households; 2) households living in substandard housing units; and 3) households paying more than 50 percent of income for rent and utilities. The City will assist tenants of "at risk" units to obtain priority status if there were a conversion to market rate and if tenants' income and housing costs meet eligibility requirements. Time Frame: Continually monitor status of extension of low-income use restrictions and assist tenants to apply for priority status immediately upon notification of owners' decision to discontinue low-income use. Responsible Agency: Department of Community Development. Funding Source: Department Administrative Budget. 25 CITY OF HUNTINGTON BEACH HOUSING ELEMENT AMENDMENT TO ADDRESS SB 1019 Housing element legislation passed in 1991 (SB 1019) now requires quantified housing element goals to be established by income category. The quantified goals now have to establish the maximum number of housing units by income category that can be constructed, rehabilitated, and conserved during the five- year housing element period. (Government Code Section 65583 (b)(2)). In response to this requirement, the 5-Year Housing Goals established in the Huntington Beach Housing Element (Page 3-7) have been disaggregated by income category. In addition, the housing conservation goal now includes conservation of the 660 low-income units at risk of conversion to market rate. The following are the revised 1989-1994 Huntington Beach Housing Element Goals: INCOME CATEGORY HOUSING GOAL Very Total Low Low Mod Upper Housing Construction 6,228 984 1,264 1,370 2,610 (Regional Housing Need) Housing Rehabilitation' 680 320 280 80 Housing Conservation 1,625 - 1,293 - 332 (Low Income Bond 1,675 1,343 Units, Rent Subsidies, Public Housing, Mobile Homes) ' Income distribution for rehabilitation goals based on targeting of specific rehab programs in City. J • _ Redevelopment Housing Set Aside Funds California redevelopment agencies, subject to Health and Safety Code Section 33000, gt sgq., are required to allocate twenty percent (20%) of its tax increment revenue to "increase, improve and preserve the community's supply of low and moderate income housing". While certain exemptions do exist to this requirement, Huntington Beach has not met those tests and is obligated to comply with the law. Set aside funds may be used for several activities. Among the more significant of these are: • Acquire, improve, or donate real property • Construct, acquire, and rehabilitate buildings or structures • Provide subsidies in order to lower housing costs • Develop plans, pay principal and interest charges, or pay financing charges on loans, bonds, or advances • Preserve housing units subsidized by governmental entities that are scheduled to convert to market rate housing • Satisfy replacement housing definitions Replacement (versus "production") unit requirements will be discussed in more detail by Economic Development Staff during the housing presentation on March 26, 1993. (6255d-7) RELEVANT STATUTES (Excerpts From The California Redevelopment Law) REDEVELOPMENT AND AFFORDABLE HOUSING STRATEGIES FEBRUARY 25, 1992 STRADLING, YOCCA, CARLSON & RAUTH a Professional Corporation HEALTH AND SAFETY CODE SECTION 33334.2 33334.2. Agency .Obligation to Use 20% of Taxes Allocated Pursuant to Sec. 33670 to Increase, Improve and Preserve the Community's Supply of Low and Moderate income Housing: Alternative Findings: Limitation on Use of Funds. (a) Not less, than 20 percent of all taxes which -are allocated to the agency pursuant to Section 33670 shall be used by the agency for the 'purposes of increasing, improving, and preserving the community's supply of low- and moderate-income housing available at affordable housing cost, as defined by Section 50052.5,* to persons and families of low or moderate income, as defined in Section 50093,* and very low income households, as defined in Section 50105,* unless one of the following findings . is made annually by resolution: (1) (A) That no need exists in the community to improve, increase, or preserve the supply of low- and moderate-income housing, including housing for very low income households in a manner which would benefit the project area and that this finding . is consistent with the housing element of the community's general plan required by Article 10.6 (commencing with Section 65580)* of Chapter 3 of . Division 1 of Title 7 of the Government Code, including its share of the regional housing needs of very low income households and persons and families of tow or moderate income. (B) This finding shall only be made if the housing element of the cortmunity's general plan demonstrates that the community does not have a need to improve, increase, or preserve the supply of low- and moderate-income housing available at affordable housing cost to persons and families of low or moderate income and to very low income households. This finding shall only be made if It is consistent with the planning agency's annual report to the legislative body on implementation of the housing element required by subdivision (b) of Section 65400 of the Government Code. No agency of a charter city shall make this finding unless the planning agency submits the report pursuant to subdivision '(b) of Section 65400 of the Government Code. This finding shall not take effect until the agency has compiled with subdivision (b) of this section. (2) (A) That some stated .percentage less than 20 percent of the taxes which are allocated to the agency pursuant to Section 33670 is sufficient to meet the housing needs of the community, including Its share of the regional housing needs of persons and families of low or moderate income and very low income households, and that this finding is consistent with the housing element of the community's general 'plan required by Article 10.6 (Commencing with Section 65580)* of Chapter 3 of Division 1 of Title 7 of the Government Code. (B) This finding shall only be made if the housing element of the community's general plan demonstrates that a percentage of less than 20 percent will be sufficient -to meet the community's need to improve, increase, or preserve the supply of low- and moderate-income housing available at affordable housing cost to persons and families of low or moderate Income and to very low income households. This finding shall only be made if it is consistent with the planning agency's annual report to the legislative body on implementation of the housing element required by subdivision (b) of Section 65400 of the Government Code. No agency of a charter city shall make this finding unless the planning agency submits the report pursuant to subdivision (b) of Section 65400 of the Government Code. This finding shall not take effect until the agency has complied with subdivision (b) of this section. (C) For purposes of making the findings specified in this paragraph and paragraph (1), the housing element of the general plan of a city or county shall be current, shall have been submitted to the Department of Housing and Community Development within the applicable time period, and shall be in compliance with Article 10.6 (commencing with Section 65SBO) of Chapter 3 of Division 1 of Title 7 of the Government Code. (3) (A) That the community is making a substantial effort to meet Its existing and projected housing needs, including its- share of the regional housing needs, with respect to persons and families of low and moderate Income, particularly very low income households, as Identified in the housing_ element of the community's general plan required by Article 10.6 (commencing with Section 65SSO)* of Chapter 3 of Division 1 of Title 7 of the Government Code, and that this effort, consisting of direct financial contributions of local funds used to Increase and improve the supply of housing affordable to persons and families of low or moderate income and very low income households, Is equivalent in impact to the funds otherwise required to be set aside pursuant to this section. In addition to any other local funds, these direct financial contributions may include federal or state grants paid directly to a community and which the community has the discretion of using for the purposes for which moneys in the Low and Moderate Income Housing Fund may be used. The legislative body shall consider the need which can be reasonably foreseen because of displacement of persons and families of low or moderate income or very low income households from within, or adjacent to, the project area, because of increased employment opportunities, or because of any other direct or Indirect result of implementation of the redevelopment plan. No finding under this subdivision may be made until the community has provided or ensured the availability of replacement dwelling units as defined in Section 33411 .2 and until it has complied with the provisions of Article 9 (commencing with Section 33410) . (B) In making the determination that other financial contributions are equivalent in impact pursuant to this subdivision, the agency shall include only those financial contributions which are directly related to programs or activities authorized under subdivision (e) of this section. (C) The authority for making the finding specified in this paragraph shall expire on June 30, 1993, except that the expiration shall not be deemed to impair contractual obligations to bondholders or private entities incurred prior to May 1 , 1991 , and made in reliance on the provisions of this paragraph. Agencies which make this finding after June 30, 1993, shall show Stradling, Yocca, Carlson & Rauth -2- evidence that the agency entered into the specific contractual obligation with the specific intention of making a finding under this paragraph in order to provide sufficient revenues to pay off the indebtedness. (b) Within 10 days following the making of a finding under subdivision (a), the agency shall send the Department of Housing and Community Development a copy of the finding, Including the factual information supporting the finding and other factual information in the housing element that demonstrates that either (1) the community does not need to increase, improve, or preserve the supply of housing for low- and moderate-income households, including very low income households, or (2) a percentage less than 20 percent will be sufficient to meet the community's need to improve, increase, and preserve the supply of housing for low- and moderate-income households, including very low Income households. Within 10 days following the making of a finding under paragraph (3) of subdivision (a), the agency shall send the Department of Housing and Community Development a copy of the finding, including the factual Information supporting the finding that the community is making a substantial effort to meet. its existing and projected housing needs. Agencies. which. make this finding after June 30, 1993, shall also submit evidence to the department of its contractual obligations with bondholders or private entities incurred prior to May 1 , 1991 , and made in reliance on this finding. if an agency is determined by a court to have knowingly or negligently misrepresented any material facts regarding the community's share of its regional housing need for low- and moderate-income housing, including very low income households or the community's production record In meeting its share of the regional housing need pursuant to the report required by subdivision (b) of Section 65400 of the Government Code, the agency shall be liable for all court costs and plaintiff's attorney fees and shal] be required to allocate not less than 25 percent of the agency's tax increment revenues to its Low and Moderate Income Housing Fund in each year thereafter. (c) In any litigation to challenge or attack a finding made under paragraph (1) , (2) , or (3) of subdivision (a), the burden shall be upon the agency to establish that the finding is supported by substantial evidence in light of the entire record before the agency. (d) Nothing in the section shall be construed as relieving any other public entity or entity with the power of eminent domain of any legal obligations for replacement or relocation housing arising out of its activities. (e) In carrying out the purposes of this section, the agency may exercise Sny or all of its powers, including the following: (1) Acquire real property or building sites subject to Section 33334.16. (2) Improve real property or building sites with onsite or offstte Improvements, but only if either. (A) the improvements are made as part of a program which results in the new construction or rehabilitation of affordable housing units for low- or moderate-income persons that are directly benefited Stradling, Yocca, Carlson & Rauth -3- by the improvements or (B) the agency finds that the improvements are necessary to eliminate a specific condition that jeopardizes the health or safety of existing low- or moderate-income residents. (3) Donate real property to private or public persons or entities. (4) Finance insurance premiums pursuant to Section 33136. (5) Construct buildings or structures. I (6) Acquire buildings or structures. (7) Rehabilitate buildings or structures. (8) Provide subsidies to, or for the benefit of, very low Income households, as defined by Section 50105,* lower income households, as defined by Section 50079.5,* or persons and families of low or moderate Inc", as defined by Section 50093,* to the extent those households cannot obtain housing at affordable costs on the open market. Housing units available on the -open market are those units developed without direct government subsidies. (9) Develop plans, pay principal and interest on bonds, loans, advances, or other indebtedness, or pay financing or carrying charges. (10) Maintain the community's supply of mobilehomes. (11) Preserve the availability to lower income households of affordable housing units in housing developments which are assisted or subsidized by public entities and which are threatened with imminent conversion to market rates. (f) The agency may use these funds to meet, in whole or In part, the replacement housing provisions in Section 33413. - However, nothing in this section shall be construed as limiting in any way the requirements of that section. (9) The agency may use these funds Inside or outside the project area. The agency may only use these funds outside the project area upon a resolution of the agency and the legislative body that such use will be of benefit to the project. The determination by the agency and the legislative body shall be final and conclusive as to the issue of benefit to the project area. The Legislature finds and declares that the provision of replacement housing pursuant to Section 33413 is always of benefit to a project. Unless the legislative body finds before the redevelopment plan is adopted, that the provision of low- and moderate-income housing outside the project area will be of benefit to the project, the project area shall include property suitable for low- and moderate-income housing. (h) The Legislature finds and declares that expenditures or obligations incurred by the agency pursuant to this section shall constitute an Indebtedness of the project. Stradling, Yocca, Carlson & Rauth -4- (1) The requirements of this section shall only apply to taxes allocated to a redevelopment agency for which a final redevelopment plan Is adopted on or after January 1, 1977, or for any area which .is added to a project by an amendment to a redevelopment plan, which amendment Is adopted on or after the effective date of this section. An agency may, by resolution, elect to make all or part of the requirements of this section applicable to any redevelopment project for which a redevelopment plan was adopted prior to January 1, 1977, subject to any Indebtedness incurred prior to the election. Stradling, Yocca, Carlson & Rauth -5- HEALTH AND SAFETY CODE SECTION 33334.3 33334.3. Establishment and Use of Low and Moderate Income Housing Fund: Covenants and Restrictions. (a) The funds which are required by Section 33334.2 or 33334.6 to be used for the purposes of increasing and improving the community's supply, of low- and moderate-income housing shall be held in a separate Low and Moderate Income Housing Fund until used. (b) Any interest earned by the Low and Moderate Income Housing Fund and any repayments or other income to the agency for loans, advances, or grants, of any kind from the Low and Moderate Income Housing Fund, shall accrue to and be deposited in, the fund and may only be used in the manner prescribed for the Low and Moderate Income Housing Fund. (c) The moneys in the Low and Moderate Income Housing Fund shall be used to increase, improve, and preserve the supply of low- and moderate-income housing within the territorial jurisdiction of the agency. (d) It is the intent of the Legislature that the Low and Moderate Income Housing Fund be used to the maximum extent possible to defray the costs of production, improvement, and preservation of low- and moderate-income housing and that the amount of money spent for planning and general administrative activities associated with the development, improvement, and preservation of that housing not be disproportionate to the amount actually spent for the costs of production, improvement, or preservation of that housing. The agency shall determine annually that the planning and administrative expenses are necessary for the production, improvement, or preservation of low- and moderate-income housing.. (e) (1) Planning and general administrative costs which may be paid with moneys from the Low and Moderate income Housing Fund are those expenses Incurred by the agency which are directly related to the programs and activities authorized under subdivision (e) of Section 33334.2 and are limited to the following: (A) Costs incurred for salaries, gages, and related costs of the agency's staff or for services provided through interagency agreements, and agreements with contractors, Including usual Indirect costs related thereto. (B) Costs incurred by a nonprofit corporation which are not directly attributable to a specific project. (2) Legal , architectural , and engineering costs and other salaries, wages, and costs directly related to the planning and execution of a specific project which are authorized under subdivision (e) of Section 33334.2 and which are incurred by a nonprofit housing sponsor are not planning and administrative costs for the purposes of this section, but are Instead project costs. Stradling, Yocca, Carlson & Rauth -6- (f) The requirements of this subdivision apply to all new or substantially rehabilitated housing units developed or otherwise assisted, with moneys from the Low and Moderate Income Housing Fund, pursuant to an agreement approved by an agency on or after January 1 , 1988. Except to the extent a longer period of time may be required by other provisions of law, the agency shall require that housing units subject to this subdivision shall remain available at affordable housing costs to persons and families of low or moderate income and very low income households for the longest feasible time, but for not less than the following periods of time, except as provided In Section 33334.13: (1) Fifteen years for rental units. However, the agency may replace rental units with equally affordable and comparable rental units in another location within the community if (A) the replacement units are available for occupancy prior to the displacement of any persons and families of low 'or moderate income residing in the units . to be replaced and (B) the comparable replacement units are not developed with moneys from the Low and Moderate Income Housing Fund. (2) Ten years for owner-occupied units. However, the agency may permit sales of owner-occupied units prior to the expiration of the 10-year period for a price in excess of that otherwise permitted under this subdivision pursuant to an adopted program which protects the agency's Investment of moneys from the Low and Moderate Income Housing Fund, including, but not limited to, an equity sharing program which establishes a schedule of equity sharing that permits retention by the seller of a portion of those excess proceeds based on the length of occupancy. The remainder of the excess proceeds of the sale shall be allocated to the agency and deposited in the Low and Moderate Income Housing Fund. The agency shall require the recording in the office of the aunty recorder of covenants or restrictions Implementing this subdivision for each parcel or unit of real property subject to this subdivision. Notwithstanding any other provision of law, the covenants or restrictions shall run with the land and shall be enforceable, against the original owner and successors In Interest, by the agency or the community. , (g) "Housing," as used in this section, Includes residential hotels, as defined in subdivision (k) of Section 37912.* The definitions of "lower Income households" and "very low income households" in Sections 50079.5* and 50105* shall apply to this section. "Longest feasible time," as used in this section, includes, but is not limited to, unlimited duration. (h) "Increasing, improving, and preserving the cainunity's supply of low- and moderate-income housing," as used in this section and In Section 33334.2, Includes the preservation of rental housing units assisted by federal , state, or local government on the condition that units remain affordable to low-. and moderate-income households, including very low income households, for a specified period of time, beyond the date the subsidies and use restrictions could be terminated and the assisted housing units converted to market rate rentals. In preserving these units the agency shall require the units remain Stradling, Yocca, Carlson & Rauth -7- affordable to persons and families of low- and moderate-income and very low Income households for the longest feasible time. However, the agency may replace rental units with equally affordable and comparable rental units in another location within the commmunity if (1) the replacement units in another location are available for occupancy prior to the displacement of any persons and families of low or moderate income residing in the units to be replaced and (2) the comparable replacement units are not developed with moneys from the Low and Moderate Income Housing Fund. (1) Agencies that have more than one project area may satisfy the requirements of this section by allocating, in any fiscal year, less than 20 percent In one project area, if the difference between the amount allocated and the 20 percent required, is instead allocated, in that same fiscal year, to the Low and Moderate Income Housing Fund from tax increment revenues from other project areas. Prior to allocating funds pursuant to this subdivision, the agency shall make the finding required by subdivision (g) of Section 33334.2. Stradling, Yocca, Carlson & Rauth -8- HEALTH AND SAFETY CODE SECTION 33413 33413. Requirement of Equivalent Replacement Dwelling Units: Requirement with Respect to New or Rehabilitated Dwelling Units Within a Project Area. .(a) Whenever dwelling units housing persons and families of . low or moderate income are destroyed or removed from the low- and moderate-Income housing .market as part of a redevelopment project which is subject to a written agreement with the agency or where financial assistance has been provided by the agency, the agency shall , within four years of the destruction or removal , rehabilitate, develop, or construct, or cause to be rehabilitated, developed, or constructed, for rental or sale to persons and families of low or moderate income, an equal number of replacement dwelling units which have an equal or greater number of bedrooms as those destroyed or removed units at affordable housing costs within the territorial jurisdiction of the agency. When dwelling units are destroyed or removed after September 1 , 1989, 75 percent of the replacement dwelling units. shall replace dwelling units available at affordable housing cost in the same Income level of very low inceme households, lower income households, and persons and families of low and moderate income, as the persons displaced from those destroyed or removed units. .(b) (1) At least 30 percent of all new or rehabilitated dwelling units developed by an agency shall be available at affordable housing cost to persons and families of low or moderate income. Not less than 50 percent of the dwelling units required to be available at affordable housing cost to persons and families of low or moderate income shall be available at affordable housing cost to, and occupied by, very low income households. (2) At feast 15 percent of all new or rehabilitated dwelling units developed within the project area by public or private entities or persons other than the agency shall be available at affordable housing cost to persons and families of low or moderate income. Not less than 40 percent of the dwelling units required to be available at affordable housing cost to persons and families of low or moderate income shall be available at affordable housing cost to very low income households. (3) The requirements of this subdivision shall apply independently of the requirements of subdivision (a) and in the aggregate to housing made available pursuant to paragraphs (1) and (2) , respectively, and not to each individual case of rehabilitation,, development, or construction of dwelling units., (4) Each redevelopment agency shall adopt a plan to comply with the requirements of this subdivision for each project area. The plan shall- be consistent with, and maybe Included within, the community's housing element. The plan shall be reviewed and, if necessary, amended at least every five years in conjunction with the housing element cycle. The plan shall ensure that the requirements of this subdivision are met every 10 years. Stradling, Yocca, Carlson & Rauth -9- i The plan shall include estimates of the number of new or rehabilitated residential units to be developed within the project area and the number of units for very low income households and low- and moderate-income households which will be developed in order to meet the requirements of paragraph (2). The plan shall also include estimates of the number of agency developed residential units which will be developed during the next five years If any, and the number of units for very low Income households and, low- and moderate-income households which will be developed during the same period of time to meet the requirements of paragraph (1) . If the requirements of this subdivision are not met by the end of each 10-year period, the agency shall meet these goals on an annual basis until the requirements for the 10-year period are met. If the agency has exceeded the requirements within the 10-year period, the agency may count the units that exceed the requirement In order to meet the requirements during the next 10-year period. (c) The agency shall require that the aggregate number of replacement dwelling units and other dwelling units rehabilitated, developed, or constructed pursuant to subdivision (a) or (b) remain available at affordable housing cost to persons and families of low Income, moderate income, and very low Income households, respectively, for the longest feasible time, as determined by the agency, but for not less than the period of the land use controls established in the redevelopment plan, except to the extent a longer period of time may be required by other provisions of law. if land on which those dwelling units are located is deleted from the project area, the agency shall continue to require that those units remain affordable as specified in the previous sentence. These requirements shall be made enforceable in the same manner as provided In subdivision (e) -of Section 33334.3. (d) (1) This section applies only to redevelopment projects for which a final redevelopment plan is adopted pursuant to Article 5 (commencing with Section 33360) on or after January 1 , 1976, and to areas which are added to a project area by amendment to a final redevelopment plan adopted on or after January 1, 1976. In addition, subdivision (a) shall apply to any other redevelopment project with respect to dwelling units destroyed or removed from the low- and moderate-income housing market on or after January 1 , 1996, Irrespective of the date of adoption of a final redevelopment plan or an amendment to a final redevelopment plan adding areas to a project area. Additionally, any agency may, by resolution, elect to make all or part of the requirements of this section applicable to any redevelopment project of the agency for which the final redevelopment plan was adopted prior to January 1, 1976. (2) An agency may, by resolution, elect to require that whenever dwelling units housing persons or families of low or moderate income are destroyed or removed from the low- and moderate-income housing market as part of a redevelopment project, the agency shall replace each dwelling unit with up to three replacement dwelling units pursuant to subdivision (a) . (e) Except as otherwise authorized by law, this section does not authorize an agency to operate a rental housing development beyond the period reasonably necessary to sell or lease the housing development. Stradiing, Yocca, Carlson & Rauth -10- (f) Notwithstanding subdivision (a), the agency may replace destroyed or removed, dwelling units with a fewer number of replacement dwelling units if the replacement dwelling units meet both of the following criteria: (1) The total number of bedrooms i.n the replacement dwelling units equal or exceed the number of bedrooms in the destroyed . or removed units. Destroyed or removed units having one or no bedroom are deemed for this purpose to have one. bedroom.. (2) The replacement units are affordable to the same income level of households as. the destroyed or removed units. (g) "Longest feasible time," as used in this section, includes, but is not limited to, unlimited duration. Stradling, Yocca, Carlson & Rauth -11- HEALTH AND SAFETY CODE SECTION 33449 33449. Authority of AWncy to Provide Low and Macerate Income Housing. Notwithstanding Section 33440, or any other provision of law, an agency may, inside or outside any project area, acquire land, donate land, improve sites, or construct or rehabilitate structures In order to provide housing for persons and families of low or moderate income, as defined In Section 41056,* and very low income households, as defined in Section 41067,* and may provide subsidies to, or for the benefit of, such persons and families or households to assist them in obtaining housing within the amity. Except as otherwise authorized by law, nothing In this section shall an an agency to operate a rental housing development beyond such period as is reasonably necessary to sell or lease the housing development. This section shall apply to all redevelopment project areas for which a redevelopment plan has been adopted, whether the redevelopment plan Is adopted before or after January 1, 1976. 4567Q/2000/005 Stradling, Yocca, Carlson & Rauth -12- STaADLING, YOCCA, CARLSON & RAUTH rRITZ R,STRADLIN' MARLEY L.BJELLAND A PROFESSIONAL CORPORATION NICK C.TOCCA STEPHEN T.rREEMAN C.CRAI'CARLSON ROBERT A.WILSON ATTORNEYS AT LAW JOHN C.SRECKENRIDOC w I LL1AM R,wAUTM III CHCRrI A.DOw 660 NEWPORT CENTER DRIVE,SUITE 1600 R[NA C.STONE K,C.SCMAAr - NICMOLAS J.YOCCA or co..Sc• RICMARD C.GOODMAN JULIE M.PORTER POST OFFICE BOX 7680 - JOHN J.MURPHY MARK T.PALIN THOMAS P.CLARK,JR. MICMAEL E.rLYNN NEWPORT BEACH.CALIrORNIA 92660.6441 SEN A. rRrDMAN ROBERT C.rU NSTEN DAVID R.M.EWEN ALETA LOUIBE SRYANT TELEPHONE (714)725.4000 - PAUL L.'ALC 'ART A.PC-BERTON RUDOLPH C.SHEPARD CAROL L.LCW TELEPHONE(714)640.7035 WRITER'S DIRCCT DIAL: ROBERT J.KANE DEN ISC HA R BAU'H HERIN' - M.D.TALSOT BA RSARA ZE1D LEIBOLD -rAK NUMBER BRUCC C.STUART JON It.GOETZ (714(725.4100 C.KURT rCA'CR JOHN D.IRELAND - ROBERT J.WNALEN MICNA EL J.PC NOCROAST ROBERT C.RICM DAVID M,MANN RANDALL J.SHERMAN CMPISTOPME14 M.MOROPOULOS BRUCC W.FEUCNTER DANA M.KCZMOH MARK J.MUESSCH DARRYL S.GIBSON KAREN A.ELLIS JOHN 0.MaCLENDON BRUCE D.MAY TODD R.TMAKAR DONALD J.MAMMAN RICMARD T.NECDMAM JOHN J.SWI'ART JR. ROSERT C.WALL ACE MICMAEL A.ZABLOCKI OERAR0 L.OSKAM NEILA R.BCRNSTEIN JOHN r.CANNON , CELESTE STAHL SRA DY KCNT M,CLAYTON C.RISTOPMCR J.KILPAT PICK JOHN E.WOODHEAD IV - JOEL M.'UTH DOUGLAS P. rEICK JULIE--COT AKINS WILLIAM J.MORLEY DAWN C.HONEYWELL NANCY J.OCWHIRST ,LAWRENCE S.COHN SANDRA M.WAKAMfVA - SUMMARY OF HOUSING SET ASIDE LAWS UNDER THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW February, 1993 Provisions of• Affordable, Low and Moderate Income Housing Pursuant to the Community Redevelopment Law (Health & Safety Code Section 33000, et sea. ) I . Establishment of Low and Moderate Income Housing Fund ("Housing Fund") A. Every Redevelopment Agency Is Required (with certain exceptions explained infra) To Set Aside Not Less Than Twenty Percent (20%) of Tax Increment Revenues From Each Project Area 1. Originally applicable only to project areas established on or after January 1, 1977 and areas added. to existing project areas by amendment on or after January 1, 1977. (S33334 . 2) 2 . Effective January 1,. 1986, pre-1977 project areas subject to 20% set aside requirement for taxes allocated to agency in 1985-1986 fiscal year and subsequent fiscal years. These project areas are, however, provided special allowance permitting agency to set aside less than 20% if tax increment funds were found by resolution in 1986 to be necessary to make payments under existing obligations created pre-1986 and/or until 1995-1996 for the timely completion of existing programs. (S33334 . 6) 3 . An agency's set-aside obligation may be met in the aggregate from all of an agency's project areas without setting aside 20% from each individual project area. (S33334 . 3 (i) ) 4 . Any interest earned by the Housing Fund and any repayments or other income to the agency for loans, advances, or grants from the Fund must be deposited in the Fund. (533334 . 3 (b) ) 5. Housing Fund revenues must be used to "increase, improve and preserve the community's supply of low and moderate income housing" within the territorial jurisdiction of the agency (S33334 . 3 (c) ) , except in narrow circumstances satisfying numerous conditions, agency may, not more than once every 5 years, expend up to 20% of its Housing Fund revenues at any one time to develop housing outside its territorial jurisdiction (S33334 . 17) . B. Exemption from Set Aside Requirements 1. If one of the following findings ( (a} through (c) below) which finding is also consistent with the housing element of the local general plan, is made annually by resolution, less than 20% of tax increment revenues may be set aside: a. no need exists in the community to improve, increase, or preserve the supply of low and moderate income housing, including very low income households, in a manner that would benefit the project area, and that the community's share of the regional affordable housing needs have been met; or b. some stated percentage less than 20% is sufficient to meet housing needs of the community and the region; or C. a substantial effort to meet existing and projected housing needs, including the community's share of regional housing needs, is being made by other direct financial contributions of nonredevelopment local Stradling, Yocca, Carlson & Rauth 2 funds. The authorization to make this finding will expire on June 30, 1993 , except for agencies which can show evidence that such agency relied on this exemption in order to provide the necessary revenue for repayment of contractual obligations incurred prior to May 1, 1991. (§33334 . 2 (a) (1) (2) (3) ) 2 . Exemption findings 1.a. and l.b. may only be made if (i) the housing element of the community's general plan is current, valid, and supports the applicable exemption finding; and (ii) the agency's annual report required by Government Code Section 65400 is consistent with the exemption finding. 3 . No agency of a charter city may make an exemption finding under l.a. and 1.b. unless the planning agency submits the report required by Government Code Section 65400. 4 . The above findings of exemption can be made only if the community has provided for the availability of replacement housing units. 5. Within 10 days of making any exemption finding set out above, agency must send the Department of Housing and Community Development a copy of the finding along with the evidentiary requirements of each finding. If an agency knowingly misrepresents facts regarding the satisfaction of the regional housing need provisions, the agency will be subject to certain costs and will have its set-aside obligations permanently increased to 25*. (§33334 . 2 (b) ) 6 . If finding of set aside exemption is challenged, the Agency bears the burden of proof to establish that the finding is supported by substantial _ evidence. (§33334 . 2 (c) ) II . Elimination of Housing Fund Deficit A. As stated in I .A. 2 . above, agencies with pre-1977 project areas were permitted to decrease amount required to be set aside by making certain findings in 1986 concerning pre-existing obligations and programs. Continued funding deferral is available by annual findings that agency has spent or will expend funds for eligible pre-existing obligations and programs in an amount exceeding 80% of tax increment revenues for that year. (§33334 .6) Strad ling, Yocca, Carlson & Rauth 3 1. New programs may be implemented only after provision made for Housing Fund set aside for that year. 2 . Agencies required to declare the difference between the 20% set aside requirement and the amount of funds actually deposited into Housing Fund as deficit of project. (§33334 . 6 (g) ) 3 . Housing Fund deficit must be eliminated pursuant to an agency-adopted financing plan. (§33334 . 6 (g) ) a. Statute does not state when financing plan to eliminate Housing Fund deficit must be adopted or what plan must contain. b. 3 step process: (i) calculate deficit, (ii) identify method of future payments of unencumbered tax increment funds to reduce and eliminate deficit (consider pre-existing debt and programs, current year set aside requirement, plan's tax increment limit and termination date) , and (iii) identify goals and objectives of proposed expenditures. B. Housing Fund deficit requires adoption of an ordinance increasing tax increment limits of pre-10/1/76 redevelopment plans if there are conflicts between existing. tax increment limitations and the Housing Fund obligations created by §33334 . 6 (g) . (§33333 . 4 (c) ) 1. Ability to amend tax increment limit of plan by ordinance without formal plan amendment Proceedings prevents conflicts between defaults on the deficit created, ability to fund deficit, and violations of the law by continuing to receive tax increment in excess of established limit in the plan. a. No deadline in statute for adoption of ordinance increasing tax increment limit. III . Use It or Lose It A. Definition of "Excess Surplus" 1. Unexpended or unencumbered Housing Fund balances that exceed the greater of $500, 000 or the aggregate amount deposited into the Housing Fund Stradling, Yocca, Carlson & Rauth 4 during the preceding five (5) years. (§33334 . 12 (d) (1) ) a. Excess Surplus calculations allow credit for real property sold by agency below fair market value on which at least 1/2 the housing units developed are available at affordable housing cost to lower income households for at least 10 years for owner-occupied and .at least 15 years for rental units. ($33334 . 12 (d) (3) ) b. Separate accounting of Excess Surplus required. ($33334 . 10 (b) ) - 2 . Failure to spend or encumber (pursuant to legally enforceable agreement) Excess Surplus within 5 years results in eventual loss of said monies by transfer to housing authority or other public agency exercising housing development powers within the -agency' s jurisdiction. (§33334 . 12 (a) ) a. Housing authority or other public agency transferee must expend funds subject to same restrictions as agency, within 3 years of transfer. (§33334 . 12 (b) ) b. Community which has disbursed excess surplus shall not disapprove affordable housing project that complies with applicable building code, general plan and zoning designations and development standards. (§33334 . 12 (e) ) . B. Agency. with Excess Surplus; May Adopt a Plan to Expend Housing Fund Revenues Within 5 Years. (§33334 . 10 (a) ) 1 . Plan need not be site specific and may be general. a. Plan must include objectives regarding the number and type of housing to be assisted, identification of the entities that will administer the plan, alternative means of insuring the affordability of housing units for the longest feasible time, the income groups assisted, and a schedule by fiscal year for expenditure of Excess Surplus. b. If adopted, plan must be included in agency's annual report. (§33334 . 10 (c) ) Stradling, Yocca, Carlson & Rauth 5 IV. Permissible Expenditures of Housing Fund Monies A. Increasing and Improving Community's Supply of Low and Moderate Income Housing Available at Affordable Housing Cost (§33334 . 2) 1 . Income Categories (§50093) a. Very Low Income -- persons and families whose income does not exceed 50% of area median income adjusted for family size. (§50105) b. Lower Income -- persons and families whose income does not exceed '80% of area median income adjusted for family size. (§50079 . 5) C. Moderate income -- persons and families whose income does not exceed 120% of area median income adjusted for family size. (§50093) 2 . Effective January 1, 1990, it shall be policy of every agency to expend Housing Fund revenues, over life of redevelopment plan, to assist low and moderate income housing in at least same proportion as Community's affordable housing needs which are not being satisfied by other governmental programs. (§33334 . 4) 3 . Affordable Housing Cost a. For owner-occupied housing receiving assistance prior to January 1, 1991, for lower or very low income, "Affordable Housing Cost" is defined as housing cost not exceeding 25% of gross income. (§50052. 5; HCD Regulation §6924) ) b. For owner occupied housing receiving assistance on or after January 1, 1991, "Affordable Housing Cost" shall not exceed: (i) Very Low Income Household--the product of 30% times 50% of the area median income adjusted for family size appropriate for the unit. (ii) Lower Income Household--the product of 30% times 70% of the area median income adjusted for family size appropriate for the unit. Stradling, Yocca, Carlson & Rauth 6 (iii) Lower Income Household Option--for those with gross income exceeding 70%, the state or local agency has the option to establish "affordable housing cost" at a level not to exceed 30% of gross household income. (iv) . Moderate Income Household--must not be less than 28% of the gross household. income, nor exceed the product of 35% times 110% of the area median income adjusted for family size appropriate for the unit. (v) Moderate Income Household Option--for those with gross income exceeding 110%, the state or local agency has the option to establish "affordable housing cost" at a level not to exceed 35% of gross household income. C. For purposes of this section, "Adjusted for Family Size Appropriate to the Unit" means: One Person Household = Studio Two Person Household = One Bedroom Unit Three Person Household = Two Bedroom Unit Four Person Household = Three Bedroom Unit. 4 . Affordable Rent a. For rental housing assistance received prior to January 1, 1991, "Affordable Rent" for lower-income households is defined as not more than 25% of net income and not less than 15% of gross income of the occupant person or household. (§50053 ; HCD Regulation §6922) b. For rental housing assistance received on or after January 1, 1991, "Affordable Rent" including a reasonable utility allowance shall not exceed: (i) Very Low Income Household--the product of 30% times 50% of the area median income adjusted for family size appropriate for the unit. (ii) Lower Income Household--the product of 30% times 60% of the area median income Stradling, Yocca, Carlson & Rauth 7 adjusted for . family size appropriate for the unit. Lower Income Household Option--for those with gross income exceeding 60%, the state or local agency has the option to establish "affordable rent" at a level not to exceed 30% of gross household income. (iv) Moderate Income Household--the product of 30% times 110% of the area median income adjusted for family size appropriate for the unit. (v) Moderate Income Household Option--for those with gross income exceeding 110%, the state or local agency has the option to establish "affordable rent" at a level not to exceed 30% of gross household income. C. For purposes of this section, "Adjusted for Family Size Appropriate to the Unit" has the same meaning as with respect to "Affordable Housing Cost, " above. B. Permissible Expenditures - to extent following activities result in provision or preservation of low and moderate income housing units, Section 33334 . 2 (e) authorizes agency exercise any of its powers, including: 1. . Acquire real property or building sites subject to the provisions of Section 33334 . 16 requiring initiation of activities consistent with development of property for low and moderate income housing within 5 years of acquisition. a. Legislative body may, by resolution affirming intention to develop low and moderate income housing, extend period that agency may retain real property purchased with Housing Fund monies for additional 5 years. (§33334 . 16) b. Failure to commence development within extended period or to comply with these provisions requires sale of property and deposit of proceeds of sale into Housing Fund. (§33334 . 16) Stradlinq, Yocca, Carlson & Rauth 8 2 . Improve real property or building sites with onsite or offsite improvements, but only under specified conditions (See IV.C, below) 3 . Donate real property to private or public persons or entities. 4 . Finance insurance premiums pursuant to Section 33136 (premiums necessary for the provision of insurance during the construction or rehabilitation of properties that are administered by governmental entities or nonprofit organizations to provide housing for lower income households, including rental properties, emergency shelters, transitional housing, or special residential care facilities) . 5. Construct buildings or structures. 6 . Acquire buildings or structures. 7 . Rehabilitate buildings or structures. 8 . Provide subsidies to, or for the benefit of, very low income, lower income or low or moderate income households to the extent those households cannot obtain housing at affordable costs on the open market. (Housing units available on the open market are those units developed without direct government subsidies. ) a. such subsidies may include payment of portion of principal and interest on bonds to finance low and moderate income housing if agency contractually assured subsidy passed on as lower housing cost. (§33334 . 15) 9 . Develop plans, pay principal and interest on bonds, loans, advances or other indebtedness, or pay financing or carrying charges. 10. Maintain the community's supply of mobile homes. 11. Preserve the availability to lower income_ households of affordable housing units in housing developments which are assisted or subsidized by public entities and which are threatened with imminent conversion to market rates. 12 . Housing Fund also permitted to be used to satisfy replacement housing requirements (§33334 . 2 (f) ) Stradlinq, Yocca, Carlson & Rauth 9 C. Public Improvements with Housing Fund 1. Improvement of land or building sites with onsite or offsite improvements but only if either: a. the improvements are made as part of a program which results in new construction or rehabilitation of affordable housing for low moderate income persons directly benefitted by the improvements, or b. the agency finds that the improvements are necessary to eliminate a specific condition that jeopardizes the health or safety of existing low or moderate income residents. (§33334 . 2 (e) (2) ) 2 . In post-1976 plans public improvement projects must be sufficiently identified and described in the plan. (§33445) D. Administrative Expenses 1. The amount of monies spent for planning and general administrative activities associated with the development or improvement of affordable housing may not be disproportionate to the amount annually spent for the costs of production, improvement and preservation of housing.. (§33334 . 3 (d) ) a. Agency must determine annually that planning and administrative expenses are necessary for production, improvement and preservation of housing. b. Planning and general administrative costs payable from Housing Fund are expenses incurred by agency which are directly related to authorized programs and activities (see Section IV.B. ) and are limited to: (i) salaries, wages and related costs of agency staff or for services pursuant to interagency agreements and agreements with contractors; (ii) costs incurred by nonprofit corporation not directly attributable to specific project. C. Legal, architectural and engineering costs and other salaries, wages and costs directly related to planning and execution of specific Stradling, Yocca, Carlson & Rauth 10 project authorized by . Section 33334.. 2 (e) (See Section IV.B. ) which are incurred by nonprofit housing sponsor shall not be characterized as planning and administrative costs, but rather shall constitute "project costs. " E. Use of Housing Fund Inside and Outside Project Area Permissible 1. Resolutions of the City Council and Agency required if money spent outside project area boundaries. (§33334 . 2 (g) ) (1) Legislative findings of resolutions are final and conclusive as to issue of benefit to the project area. 2 . Provision of replacement housing always of benefit to a project. V. Terms of Affordability for Housing Units Assisted with Housing Fund A. All New or Substantially Rehabilitated Housing Units Developed or Otherwise Assisted With Housing Fund Monies after January 1, 1988 Shall Remain Available at Affordable Housing Costs to . Persons and Families of Low or Moderate Income and Very Low Income Households For the Longest Feasible Time, But For Not Less Than 15 Years For Rental Units and 10 Years For Owner-Occupied Units , Except To the Extent a Longer Period of Time Required by Other Laws. (§33334 . 3 (f) ) 1. Law permits limited flexibility to agencies to deviate from the above affordability terms. a. Rental units may be replaced early with equally affordable and comparable rental units in another location if the replacement units are available for occupancy prior to displacement and if comparable replacement units are not developed with Housing Fund monies. b. Owner-occupied units may be resold before expiration of affordability term at a sales price higher than permitted in the affordable housing covenants, so long as the agency' s investment of Housing Fund revenues is protected pursuant to an adopted program, Stradling, Yocca, Carlson & Rauth 11 such as equity sharing based on length of occupancy. 2 . Covenants reciting affordability terms must be recorded against each assisted parcel or unit of real property. a. Recorded covenants run with the land and are enforceable by agency or the community against original owner and successors in interest. (§33334 . 3 (f) (2) ) 3 . Requirements of $33334 . 3 (f) may create ambiguities For example, "substantially rehabilitated" not defined. VI. Replacement Housing A. Agencies Required to Replace Low and Moderate Income Housing Units Destroyed or Removed as Part of a Post-1976 Redevelopment Project or Amended Project Which is Subject to a Written Agreement with the Agency or Where Financial Assistance Has Been Provided by the Agency with Another Low to Moderate Income Unit Within Four (4) Years. (§33413) 1. The above requirement applies to pre-1976 projects on and after January 1, 1996 . (§33413 (d) (1) ) 2 . Agency may replace destroyed or removed dwellings with fewer units if the replacement units have a greater or equal number of bedrooms and are affordable to the same income level households as the destroyed or removed units. (§33413 (f) (1) (2) ) 3 . When dwelling units destroyed or removed after September 1, 1989, 75% of replacement units shall be available at affordable housing cost to same income level as persons displaced. (§33413 (a) ) 4 . "Longest feasible time" includes unlimited duration. (§33413 (g) ) 5. Replacement Housing Plan required at least 30 days before approval of an agreement which would lead to the destruction of or removal of low to moderate housing units. (§33413 . 5) Stradling, Yocca, Carlson & Rauth 12 VII . Project Area Affordable Housing Production Requirements A. Housing Units Developed or Rehabilitated by an Agency. 1. At least 30% of all new or rehabilitated dwelling units developed by an agency shall be available at affordable housing cost to persons and families of low or moderate income. a. At least 50% of the 30% described above, (that is, 15%) shall be available at affordable housing cost . to, and occupied by, very low income households. (§33413 (b) (1) ) B. Housing Units Developed or Rehabilitated Within Project Area by Public or Private Entities, Other Than the Agency. 1 . At least 15% of all new or rehabilitated dwelling units developed with the project area (by other than the agency) shall be available at affordable housing cost to persons and families of low and moderate income. a. At least 40% of the 15% described above (that is, 6%) shall be available at affordable housing cost to very low income households. (,! 33413 (b) (2) ) C. Compliance Plan 1. Agencies must adopt a plan to ensure the agency's compliance with the inclusionary housing requirements described in this Section VII . 2 . The plan shall ensure agency compliance every 10 years, and shall include: a. Estimates of the number of new or rehabilitated residential units to be developed within. the project area, and which of those units will be restricted for very low, low, and moderate income households in order to meet. the requirements of Section VII .B. 1. above. b. Estimates of the number of agency developed residential units to be developed during the next 5 years, and which of those units will be restricted for very low, low; and moderate income households during the same time period Stradling, Yocca, Carlson & Rauth 13 L in order to meet the requirements of Section VII .A. 1. above. 3 . If the requirements are not met by the end of each 10 year period, then the agency will be required to comply annually thereafter until the 10-year requirement is met. If the agency exceeds the requirement, the agency may count the excess in satisfying the next 10-year requirement. D. Other Requirements 1. The requirements of- A. and B. above apply: a. independently of replacement housing requirements (Section VI. , above) , and b. in the aggregate, not to each individual case of rehabilitation, development or construction. (§33413 (b) (3) ) 2 . The above-described units must remain available at an affordable housing cost to the targeted income households for the longest feasible period, but for not less than the period of the land use controls established in the redevelopment plan, except if other laws require a longer period. (§33413 (c) ) 3 . Even if land on which units are located is deleted from project area, affordability covenants remain enforceable. (§33413 (c) ) VIII . Reporting and Monitoring Requirements A. Agency Annual Report Filed with City Council Within Six_ (6) Months of the Close of Agency's Fiscal Year. (§33080. 1) 1 . Annual Report Requirements: independent financial audit report for previous fiscal year, including financial activities of Housing Fund; work program for coming year, including goals; examination of previous year's achievements compared to previous year's work program; and recommendations for needed legislation to carry on properly a program of housing and community development in California. 2 . Specific housing information required in annual report including breakdown by project area of Stradling, Yocca, Carlson & Rauth 14 . S� • units removed, replacement housing and units assisted, identified by income category and by elderly versus nonelderly. (§33080. 4 . ) 3 . Copy of annual report filed with State Controller. (§33080) a. HCD compiles data and required to publish its own annual report. B. Ongoing Agency Monitoring Required of Housing Fund Programs. (§33418) 1. Annual report. 2 . Monitoring fees may be imposed upon property owners. 9999(W L`.data�publ'.19d'391 IQ Stradling, Yocca, Carlson & Rauth 15 • City Affordable Housing Policy On September 16, 1991, the City Council appointed a task force to explore the need for affordable housing in Huntington Beach and to develop a set of recommendations for Council consideration. After many weeks of diligent effort, the Affordable Housing Task Force's recommendations were approved on May 18, 1992. The Task Force made several findings that can be summarized as follows: • Housing opportunities for families earning less than SO% of median income are limited to rental units, with the Orange County Housing Authority being able to assist only 25% of the rental assistance needs of these families in Huntington Beach. • Housing opportunities for families earning 50 to 80% of median income are primarily limited to rental units. The marketplace is not adequately addressing new housing opportunities for these households. • Housing opportunities for families earning 80 to 100% of median income are being met by the City's existing supply of rental units. Ownership opportunities are not generally available. • Housing opportunities for families earning 100 to 120% of median income are primarily being met through new and existing rental units. Ownership opportunities are very limited for these households. • The community's need for affordable housing has not been adequately addressed by the City and should be considered as part of all new development projects. A variety of recommendations and strategies were offered by the Task Force and are outlined in the report as possible remedies to the lack of affordable housing, and included a ten percent (10%) affordable housing obligation with the option of onsite/offsite construction, or payment of an in-lieu fee. Other strategies are discussed at length in the report. (6255d-2). AFFORDABLE HOUSING TASK FORCE REPORT TO CITY COUNCIL JANUARY 1992 (AMENDED & APPROVED MAY 18,. 1992), (1663D) AFFORDABLE HOUSING TASK FORCE Grace Winchell, City Council Don MacAllister, City Council Ken Bourguignon, Planning Commission Shirley Dettloff, Planning Commission Dick Harlow, Chamber of Commerce Doug Snyder, Chamber of Commerce Jim Righeimer, Board of Realtors Dean Allison, Habitat for Humanity John G. Hambuch, O.C. Housing Authority STAFF LIAISON Mike Adams, Director of Community Development Pat Spencer, Director Housing and Building INTRODUCTION On September 16, 1991, the City Council appointed a task force to make recommendations to the Council on affordable housing . The task force was given the charge of exploring the various aspects of affordable housing and to recommend an affordable housing strategy to implement the City' s adopted Housing Element . The goal is to develop a long range affordable housing plan which addresses the projected needs of the community and achieves the expectations of Regional, State and Federal regulations . The task force recognizes that the issue of affordable housing is multi-faceted and complicated and therefore, must be addressed as a total package. The City' s affordable housing needs should be addressed jointly by .the city and development community. The city needs to provide incentives to encourage affordable housing, and the development community should be required mandatory compliance with affordable housing policies . The attached report is a summary of the task forces past ten meetings . The report includes a suggested city-wide Affordable Housing Policy and recommendations for city initiated incentives to encourage affordable housing. - 1 - FINDINGS AND RECOMMENDATIONS: The task force recommends that the City take a proactive approach in order to achieve city-wide affordable housing. This includes the implementation of city incentives and the adoption of developer obligations . The City' s affordable housing needs should address both rental and for-sale housing units . The task force offers the following findings and recommendations : 1. Housing opportunities for families earning less than 50% of the County Median Income are limited to existing rental units . Currently the Orange County Housing Authority is only able to meet 25% of the rent assistance needs for these families within the city. Recommendation - The City should assist in providing rental assistance for the remaining 75% of the City' s very low income individuals and families . - The City should assist in providing financial assistance for the development of new rental units which target the very low income individuals and families . - The City should identify locations for single room occupancy projects and other innovative projects which target the very low income. 2 . Housing opportunities for families earning 50-80% of the County Median Income are primarily limited to rental units . New housing opportunities for low income individuals and families are not being adequately addressed by the market place. Recommendation - The City should assist in providing financial assistance for new rental projects which target low income individuals and families . - The City should develop new development standards to encourage the development of new projects for the low income. - The City should only assist in the development of for-sale housing units for low income households when initiated through non-profit organizations . - City staff should actively participate in the League of Cities/County of Orange Joint Committee on Reducing Barriers to Affordable Housing.- - 2 3 . Housing Opportunities for families earning 80-100% of the County Median Income are being met by the City' s existing supply of rental units . Ownership opportunities are not available. Recommendation - The City should not assist in the development of new conventional rental projects unless the vacancy factor significantly drops . The City should facilitate condominium conversion projects only if it results in a permanent net increase in affordable units . - The City should explore opportunities for assistance and the adoption of new development standards to encourage the development of for-sale housing which targets moderate income individuals and families . The City should encourage developers who are unable to provide on-site affordable housing to purchase existing "at risk" , or nonrestricted, apartment projects to ensure their long term affordability. 4 . Housing opportunities for families earning 100-120% of the County Median Income are primarily being met only through the City' s existing and new rental units . Ownership opportunities are very limited for moderate income households . Recommendation - The City should assist in providing financial assistance and subsidies for new for-sale housing projects which target moderate income households, or The City should adopt new development standards to encourage the development of for-sale housing which targets moderate income individuals and families . - 3 5 . The community need for affordable housing has not been adequately addressed by the City and, therefore, should be considered as part of all new development projects . Recommendation - The City should place a condition on all new development projects stating the following : "The City shall require that concurrent with the approval of all new residential projects of three or more units the developer shall have and affordable housing obligation for a minimum of ten percent of the projects units to be addressed in an affordable housing proposal . An affordable housing proposal shall address one or more of the following : - On-site construction of affordable units . - Off-site construction of affordable units . - Payment of in-lieu fee for affordable units . The affordable housing obligation shall be calculated in residential units and shall be based on 10% of the non affordable units proposed. The in-lieu fee alternative shall be figured at $1. 00 per square foot . Affordable housing shall be defined as any residential unit which can be occupied by an individual and/or household earning less that 120% of the Orange County Median Income. The City shall also require that affordable housing in-lieu fee be paid at the time of development of all new commercial and industrial projects . The in-lieu fee shall be figured at twenty cents per square foot . " 4 - RECOMMENDED STRATEGIES: 1. Identify and encourage specific locations for Single Room Occupancy Projects . 2 . Allow second units (granny units) in single family areas without a conditional use permit. In addition new standards for development need to be adopted in order to assure neighborhood compatibility. 3 . Identify and encourage selected locations for senior housing projects . 4 . Investigate and encourage employee housing within commercial and industrial projects . 5 . Explore condominium conversion projects with as built conditions if non affordable apartments can be converted to affordable condominiums . 6 . Adopt "Affordable Housing" development standards specifically related to density, parking, site coverage, open space and building height . 7 . Investigate the feasibility of fast tracking development permits, waiver of selected public fees, obligation for public infrastructure improvements, etc. 5 - 5 . The community need for affordable housing has not been adequately addressed by the City and, therefore, should be considered as part of all new development projects . Recommendation - The City should place a condition on all new development projects stating the following : "The City shall require that concurrent with the approval of all new residential projects of three or more units the developer shall have and affordable housing obligation for a minimum of ten percent of the projects units to be addressed in an affordable housing proposal . An affordable housing proposal shall address one or more of the following : - On-site construction of affordable units . - Off-site construction of affordable units . - Payment of in-lieu fee for affordable units . The affordable housing obligation shall be calculated in residential units and shall be based on 10% of the non affordable units proposed. The in-lieu fee alternative shall be figured at $1.. 00 per square foot . Affordable housing shall be defined as any residential unit which can be occupied by an individual and/or household earning less that 120% of the Orange County Median Income. The City shall also require that affordable housing in-lieu fee be paid at the time of development of all new commercial and industrial projects . The in-lieu fee shall be figured at twenty cents per square foot . " 6 - _n t RECOMMENDED STRATEGIES: 1. Identify and encourage specific locations for Single Room Occupancy Projects . 2 . Allow second units (granny units) in single family areas without a conditional use permit . In addition new standards for development need to be adopted in order to assure neighborhood compatibility. 3 . Identify and encourage selected locations for senior housing projects . 4 . Investigate and encourage employee housing within commercial and industrial projects . 5 . Explore condominium conversion projects with as built conditions if non affordable apartments can be converted to affordable condominiums . 6 . Adopt "Affordable Housing" development standards specifically related to density, parking, site coverage, open space and building height . 7 . Investigate the feasibility of fast tracking development permits, waiver of selected public fees, obligation for public infrastructure improvements, etc. 7 - � t S � 1 Coastal Zone Housing Requirements Section 65590 of the Government Code governs the provision of affordable housing within the coastal zone. New construction replacement housing, conversion and demolition are addressed in this section. The housing element addresses these requirements. Included in this analysis is a review of: • The number of housing units approved for construction for low and moderate income persons after January. 1, 1982; • The number of housing units for persons of low or moderate income provided in new housing developments either within the coastal zone, or within three miles of the coastal zone; • The number of existing residential dwelling units occupied by persons with families of low or moderate income that have been authorized to be demolished or converted since January 1982; and • The number of residential dwelling units that have been required for replacement units for low or moderate income households. (6255d-3) The Planning and Zoning Law the statewide goal of a sufficient supply of decent housing to meet the needs of all • Californians. (Added by Stars. 1980, Ch. 1143.) 65589.5. When a proposed housing development project complies with the applicable Findings to reject general plan, zoning, and development policies in effect at the time that the housing housing development development project's application is determined to be complete, but the local agency approvals proposes to disapprove the project or to approve it upon the condition that the project be developed at a lower density,the local agency shall base its decision regarding the proposed housing development project upon written findings supported by substantial evidence on the record that both of the following conditions exist: (a)The housing development project would have a specific,adverse impact upon the public health or safety unless the project is disapproved or approved upon the condition that the project be developed at a lower density. (b)There is no feasible method to satisfactorily mitigate or avoid the adverse impact identified pursuant to subdivision(a),other than the disapproval of the housing develop- mentproject or the approval of the project upon the condition that it be developed at a lower density. (Added by Stats.1982, Ch. 1438.) 65589.6.In any action taken to challenge the validity of a decision by a city,county,or city Action to challenge and county to disapprove a project or approve a project upon the condition that it be validity of project developed at a lower density pursuant to Section 65589.5, the city, county, or city and approvaUdisapproval county shall bear the burden of proof that its decision has conformed to all of the conditions specified in Section 65589.5. (Added by Stats. 1984, Ch. 1104.) 65589.8. A local government which adopts a requirement in its housing element that a Affordable housing housing development contain a fixed percentage of affordable housing units,shall permit a developer to satisfy all or a portion of that requirement by constructing rental housing at affordable monthly rents,as determined by the lo:zl government. Nothing in this section shall be construed to expand or contract the authority of a local government to adopt an ordinance, charter amendment, or policy requiring that any housing development contain a fixed percentage of affordable housing units. (Added by Stars. 1983, Ch. 787.) Article 10.7. Low- and Moderate-Income Housing Within the Coastal Zone 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 Requirements for defined and delineated in Division 20 (commencing with Section 30000) of the Public housing. 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 Replacement housing 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,theprovisions of this subdivision shall apply if at least onesuch person or family, excluding any dependents thereof,is of low or moderate income. For purposes of this subdivision,a residential dwelling unit shall be deemed occupies by a person or family of low or moderate income if the person or family was evicted from 45 The Planning and Zoning Low that dwelling unit within one year prior to the filing of an application to convertor demolish • the unit and if the eviction was for the purpose of avoiding the requirements of this subdivision.If a substantial number of persons or families of low or moderate income were evicted from a single residential development within one year prior to the filing of an _ application to convert or demolish that structure,the evictions shall be presumed to have been for the purpose of avoiding the requirements of this subdivision and the applicant for the conversion or demolition shall bear the burden of proving that the evictions were not for the purpose of avoiding the requirements of this subdivision. The requirements of this subdivision for replacement dwelling units shall not apply to the following types of conversion or demolition unless the local government determines that replacement of all or any portion of the converted or demolished dwelling units is feasible,in which event replacement dwelling units shall be required: (1)The conversion or demolition of a residential structure which contains less than three dwelling units,or,in the event chats proposed conversion or demolition involves more than one residential structure, the conversion or demolition of 10 or fewer dwelling units. (2)The conversion or demolition of a residential structure for purposes of a nonresiden- tial use which is either"coastal dependent," as defined in Section 30101 of the Public Resources Code, or "coastal related," as defined in Section 30101.3 of the Public Resources Code.However,the coastal-dependent or coastal-related use shall be consistent with the provisions of the land use plan portion of the local government's local coastal program which has been certified as provided in Section 30512 of the Public Resources Code.Examples of coastal-dependent or coastal-related uses include,but are not limited to, visitor-serving commercial or recreational facilities, coastal-dependent industry, or boating or harbor facilities. (3)The conversion or demolition of a residential structure located within the jurisdiction ® of a local government which has within the area encompassing the coastal zone,and three miles inland therefrom,less than 50 acres,in aggregate,of land which is vacant,privately owned and available for residential use. (4)The conversion or demolition of a residential structure located within the jurisdiction of a local government which has established a procedure under which an applicant for _ conversion or demolition will pay an in-lieu fee into a program,the various provisions of which,in aggregate,will result in the replacement of the number of dwelling units which would otherwise have been required by this subdivision. As otherwise required by this subdivision,the replacement units shall,(i)be located within the coastal zone if feasible, or,if location within the coastal zone is not feasible,shall be located within three miles of the coastal zone, and (ii)shall be provided and available for use within three years from the date upon which work commenced on the conversion or demolition. The requirements of this subdivision for replacement dwelling units shall not apply to the demolition of any residential structure which has been declared to be a public nuisance under the provisions of Division 13 (commencing with Section 17000)of the Health and Safety Code,or any local ordinance enacted pursuant to those provisions. For purposes of this subdivision,no building,which-conforms to the standards which were applicable at the time the building was constructed and which does not constitute a substandard building,as provided in Section 17920.3 of the Health and Safety Code,shall be deemed to be a public nuisance solely because the building does not conform to one or more of the current provisions of the Uniform Building Code as adopted within the jurisdiction for new construction. Shirt in use (c)The conversion or demolition of any residential structure for purposes of a nonresi- dential use which is not"coastal dependent", as defined in Section 30101 of the Public Resources Code,shall not be authorized unless the local government has fist determined that a residential use is no longer feasible in that location.If a local government makes this determination and authorizes the conversion or demolition of the residential structure. it shall require replacement of any dwelling units occupied by persons and families of low or moderate income pursuant to the applicable provisions of subdivision(b). New housing (d)Newhousing developments constructed within the coastal zone shall,where fe-asible, construction 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 46 The Planning and Zoning Law 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 offerdensity bonuses or other incentives,including,but not limited to,modification of zoning and subdivision requirements,accelerated processing of required applications,and the waiver of appropri- ate fees. (e)Any determination of the"feasibility"of an action required to be taken by this section Judicial standard or shall be reviewable pursuant to the provisions of Section 1094.5 of the Code of Civil review Procedure. (f)The housing provisions of any local coastal program prepared and certified pursuant Grandfathering to Division 20(commencing with Section 30000)of the Public Resources Code prior to January 1, 1982, shall be deemed to satisfy all of the requirements of this section. Any change or alteration in those housing provisions made on or after January 1,1982,shall be subject to all of the requirements of this section. (g)As used in this section: Definitions 0)"Conversion"means a change of a residential dwelling,including a mobilehome,as defined in Section 18008 of the Health and Safety Code, or a mobilehome lot in a mobilehome park, as defined in Section 18214 of the Health and Safety Code, or a residential hotel as defined in paragraph (1) of subdivision (b) of Section 50519 of the Health and Safety Code,to a condominium,cooperative,or similar form of ownership;or a change of a residential dwelling, including a mobilehome, or a mobilehome lot in a mobilehome park,or a residential hotel to a nonresidential use. (2) "Demolition" means the demolition of a residential dwelling, including a mobile- home,as defined in Section 18008 of the Health and Safety Code,or a mobilehome lot in a mobilehome park, as defined in Section 18214 of the Health and Safety Code, oT a ® residential hotel, as defined in paragraph (1) of subdivision (b) of Section 50519 of the Health and Safety Code, which has not been declared to be a public nuisance under Division 13(commencing witlu Section 17000)of Jhe Health and Safety Code or any local ordinance enacted pursuant to those provisions. (3)"Feasible" means capable of being accomplished in a successful manner within a reasonable period of time, taking into account economic, environmental, social, and technical factors. (h)With respect to the requirements of Sections 65583 and 65584,compliance with the Compliance requirements of this section is not intended and shall not be construed as any of the following: (1) A statutory interpretation or determination of the local government actions which may be nmessary to comply with the requirements of those sections; except that compliance with this section shall be deemed to satisfy the requirements of paragraph(2) of subdivision (c) of Section 65583 for that portion of a local government's jurisdiction which is located within the coastal zone. (2) A limitation on the program components which may be included in a housing element,or a rrquirement that a housing element be amended in order to incorporate within it any specific provision of this section or related policies. Any revision of a housing element pursuant to Section 65588 shall,however,take into account any low-or moderate- income housing which has been provided or required pursuant to this section. (3)Except as otherwise specifically required by this section,a requirement that a local government adopt individual ordinances or programs in order to implement the require- ments of this section. (i) No provision of this section shall be construed as increasing or decreasing the Authority authority of a local government to enact ordinances or to take any other action to ensure the continued affordability of housing. (j)Local governments may impose fees upon persons subject to the provWors of this ;gees section to offset administrative costs incurred in order to comply with the requirements of this section. -- (k)This section establishes minimum requirements for housing within the coastal zone Leg:s:ative intent for persons and families of 10-Vor moderate income. It is not intended and shall not be 47 The Planning and Zoning Law construed as a limitation or constraint on the authority or ability of a local government,as • may otherwise be provided by law,to require or provide low-or moderate-income housing within the coastal zone which is in addition to the requirements of this section. (Amended by Slats. 1982,Ch. 1246.) Application of section 65590.1.Any local government which receives an application as provided in Section 30600.1 of the Public Resources Code to apply the requirements of Section 65590 to a proposed development shall apply these requirements within 90 days from the date on which it has received that application and accepted it as complete.In the event that the local government has granted final discretionary approval to the proposed development,or has determined that no such approval was required,prior to receiving the application,it shall,nonetheless, apply the requirements and is hereby authorized to conduct proceedings as may be necessary or convenient for the sole purpose of doing so. (Added by Slats. 1982,Ch.43.Effective February 17, 1982.) (Article 11. [commencing with Section 65600]repealed by Slats. 1984,Ch. 690.) (Article 12. [commencing with Section 65650]repealed by Slats. 1984,Ch. 690.) Article 13.Applicability of Chapter Charter cities 65700.(a)The provisions of this chapter shall not apply to a charter city,except to the extent that the same may be adopted by charter or ordinance of the city;except that charter cities shall adopt general plans in any case,and such plans shall be adopted by resolution of the legislative body of the city,or the planning commission if the charter so provides,and such plans shall contain the mandatory elements required by Article 5 (commencing with ® Section 65300)of Chapter 3 of this title. (b)Notwithstanding subdivision(a),the provisions of Sections 65590 and 65590.1 shall be applicable to charter cities. (Amended by Stats. 1982, Ch.43.Effective Febra ry 17, 1982.) Article 14. Actions or Proceedings Definitions: 65750. As used in this article,unless the context r%quires otherwise: "Petition" (a)"Petition"includes any form of pleading brought pursuant to Section 65751,whether it is a petition,complaint,cross-complaint,complaint in intervention,or any other fo.;n. "Petitioner" (b) "Petitioner" includes a petitioner, plaintiff, cross-complainant, or intervenor who files an action of any kind pursuant to Section 65751. (Repealed and added by Slats. 1984, Ch. 1039). Note: Stars. 1994,Ch. 1039,also reads: Uncoditied policy SEC.12.It is the intent of the Legislature that the term"substantial compliance,"as used in Article 14(commencing with Section 65750)of Chapter 3 of Division 1 of Title 7 of the Government Code be given the same interpretation as was given that term by the court in Camp v. Board of Supervisors, 123 Cal. App. 3d 334 at page 348. Judicial standard of 65751.Any action to challenge a general plan or any element thereof on the grounds that such review plan or element does not substantially comply with the requirements of Article 5 (commencing with Section 65300)shall be brought pursuant to Section 1085 of the Code of Civil Procedure. (Amended by Stars. 1984, Ch. 1039.See note following Section 65750.) Priority of judicial 65752. All actions brought pursuant to Section 65751, including the hearing of any such challenges. action on appeal from the decision of a lower court,shall be given preference over all other civil actions before the court in the matter of setting the same for hearing or trial,and in hearing the same,to the end that all such actions shall be speedily heard and determined (Added by Slats. 1982, Ch.27.) 48 Density Bonus Section 65915 of the Government Code requires that cities adopt an ordinance to provide a mechanism for offering density bonuses, or other incentives, to developers who propose the construction (in excess of five units) of affordable housing for very low and lower income households. The City's adopted density bonus program is located within Article 963 of the ordinance code, thus it is applicable city—wide and requires the approval of a conditional use permit. To briefly summarize, Huntington Beach's program offers the following: • Developer will have the option of a 25% (minimum) density bonus in return for provided affordable housing over a specified period of time. • . Fees and certain development standards could be waived in exchange for thirty (30) years of affordability. The ordinance defines, in very specific terms, the various classifications of eligible households and formulas for determining rent or mortgage payments. (6255d-9). Huntington Beach Ordinance Code 9636.1(c)--9637. 1 (b)(6) (c) Florists shops offering the sale of a bottle of an alcoholic beverage together with a floral arrangement. (2987-3/89) (c) Temporary Outdoor Events pursuant to section 9731 .64. (2987-3/89) 9637 Density bonus and other incentives for the provision of affordable housing for qualifying residents, lower income and very low income households. For the purpose of providing affordable housing, a developer of a residential property which is zoned and general planned to allow five (5) or more dwelling units may request a density bonus and/or other incentive through a conditional use permit subject to the provisions contained in this section. Density bonus requests pursuant to the provisions contained within this article shall not be denied unless the project is denied in its entirety. (3130-3/42) 9637.1 Definitions. (3130-3/92) (a) "Density Bonus" for the purposes of this article, means an increase in the proposed number of units of twenty-five (25%) percent or greater over the number permitted pursuant to the current zoning and general plan . designation on the property. (3130-3/92) (b) "Other Incentives" are policies , programs or actions taken by the City designed to ensure that the development will be produced at a lower cost. They include, but are not limited to the following: (3130-3/92) (1) A reduction in site development standards or architectural design requirements which exceed the minimum building standards contained within the Uniform Building Code as adopted by the City including, but not limited to, a reduction in setback, lot coverage, floor area ratio, parking and openspace requirements. (3130-3/92) (2) Approval of mixed use zoning in conjunction with the housing project if commercial , office, industrial , or other land uses will reduce the cost of the housing development and if the commercial , office, industrial , or other land uses are compatible with the housing project and the existing .or planned development in the area where the proposed housing project will be located. (3130-3/92) (3) A reduction in development and/or processing fees. (3130-3/92) (4) Other regulatory incentives or concessions proposed by the developer or the City which result in identifiable cost reductions. (3130-3/92) (5) Financial assistance by the City, i .e. , housing set-aside funds . (3130-3/92) (6) Other incentives mutually agreeable to the City and developers consistent with all City, State and Federal laws, rules, standards , regulations and policies. (3130-3/92) (c) "Moderate income household" A household shall be classified as "moderate income" if annual income is at or below one hundred twenty (120%) percent of Orange County median income as defined by the State of California Department of Housing and Community Development.. (3130-3/92) 3/92 Huntington Beach Ordinance Code 9637. 1 (d)--9637.3(a) . ' y (a) -"Lower income household" A household shall be classified as "lower income" if annual income is at or below eighty (80%). percent of 'Orange County median income as. defined by the State of Cal ifornmie Department of Housing and Community Development. (3130-3/92) (e) _"Very low income household" A household. shall be classified as "very low income" if annual income is at or below fifty (50%) percent of Orange County median income as defined by the State of Californmie Department of . Housing and Community Development . (3130-3/92) (f) "Qualifying Senior Resident" A person shall be classified as a "qualifying senior resident" Jf he or she. is 62 years of age or older. (Section 51 .2 of the California Civil Code.) .(3130-3/92) 9637.2 Target rents/mortgage payments. (3130-3/92) (a) For the purposes of this article, units designated for moderate income . household shall be affordable at a rent or mortgage payment that does not exceed twenty-five (25%) percent of the gross family income. (3130-3/92) (b) For the purpose of this article, units designated for lower income households shall be affordable at a rent or mortgage payment that does not exceed thirty (30%) of sixty (60%) percent of the Orange County median income as defined by the State' of California Department of Housing and Community Development. (3130-3/92) 1. (c) For the purpose of this article, those units designated for very low income households shall be affordable at a rent or mortgage payment that does not exceed thirty (30%) percent of fifty (50%) percent of the Orange County median income as defined by the State of California Department of Housing, and Community Development. (3130-3/92) 9637.3 Affordability requirements. (3130-3/92) (a) Percentage of affordable units required. To qualify for a density bonus and/or other incentives, the developer of a residential project must agree to one of the following: (3130-3/92) (1) Provide at least twenty (20%) percent of the total units of the housing development for lower income households; or (3130-3/92) (2) Provide at least ten (10%) percent of the total units of the housing development for very low income households; or (3130-3/92) (3) Provide at least fifty (50%) percent of the total units of the housing development- for qualifying (senior) residents. (3130-3/92) The density bonus shall not be included when determining the number of housing units required to be affordable. Remaining units may be rented, sold, or leased at "market" rates. (3130-3/92) If a developer is granted a density bonus in excess of twenty-five (25%) percent, those additional units above the twenty-five (25%) percent may be required to be maintained affordable for "moderate income" households. (3130-3/92) 3/92 9637.3(b)--9637.3(e)2 Huntington Beach Ordinance Code (b) Duration of affordability Units required to be affordable as a .result of the granting of a density bonus and other incentives shall remain affordable for thirty (30) years. If the City does not grant at least one concession or incentive pursuant to this article in addition to the density.bonus, or provides other incentives in lieu of the density bonus, those units required to be affordable shall remain so for ten (10) years; (c) Affordable unit distribution and product mix Affordable units shall be located throughout the project and shall include a mixture of unit types in the same ratio, as provided throughout the project; (3130-3/92) (d) Affordabilityaagreement Affordability shall be guaranteed through an "Affordability Agreement" executed between the developer and the City. Said agreement shall be recorded on the subject property with the Orange County Recorder' s Office as provided in Section 65915, et seq. of the California Government Code, prior to the issuance of building permits and . shall become effective prior to final inspection of the first unit. The 'subject agreement shall be legally binding and enforceable on the property owner(s) and any subsequent property owner(s) for the duration of the agreement. The agreement shall include, but is not limited to, the following items: (3130-3/92) (1) The number of and duration of the affordability for the affordable units. (3130-3/92) (2) The method in which the developer and the City are to monitor the j affordability of the subject affordable units and the eligibility of the tenants or owners of those units over the period of the agreement; (3130-3/92) (3) The method in which vacancies will be marketed and filled; (3130-3/92) (4) A description of the location and unit type (bedrooms. floor area, etc. ) of the affordable units within the project; and (3130-3/92) (5) Standards for maximum qualifying household incomes and standards for maximum rents or sales prices. (3130-3/92) (e) Pursuant to this article the City shall : (3130-3/92) (1). grant a density bonus and at least one of the concessions or incentives identified in section 9637.1 (b) unless the City makes a written finding that the additional concession or incentive is not required in order for rents or mortgage payments to meet the target rates; or (3130-3/92) (2) provide other incentives of equal value to a density bonus as provided in Section 65915, et seq. of the California Government Code. The value of the other incentives shall be based on the land cost per dwelling unit. (3130-3/92) 3/92 1 e Huntington Beach Ordinance Code 9637.4--9637.4(d) 1 9637.4 Procedure. (3130-3/92) (a)- Inmaddition to submitting -all documentation required to apply for a conditional _ u-se' permit, a developer requesting a density bonus or other incentive pursuant to thissection shall include the following in the written narrative- supporting the application:- (3130-3/92) (1) A general description of the proposed project, general plan designation, applicable zoning, maximb'm� possible density permitted under the current zoning and general plan designation and such other information as is necessary and sufficient. The property -must be zoned and general planned to allow a minimum of five. (5) units to qualify for a density bonus; (3130-3/92)' (2) A calculation of the density bonus allowed pursuant to Qalifornia Government- Code Section 65915.5(b), which is an increase-in units of = at least twenty-five (25%) percent over the number of units permitted under existing zoning and general plan designation; (3130-3/92) (3) In the case that. the developer requests the City to modify development standards as an other incentive, a statement providing a detailed explanation as to how the requested incentive will enable the developer to provide housing at the target rents or mortgage payments. Modification of development standards will be granted only to the extent necessary to achieve the housing affordability goals set forth herein. (3130-3/92) (4) A statement detailing the number of density bonus units being proposed over and above the number of units normally permitted by the applicable zoning -and general plan designations. (3130-3/92) (b) All subsequent City review of and action on the applicant' s proposal for a density bonus and/or consideration of any requested other incentives shall occur in a manner concurrent with the processing of the conditional use permit and any other required entitlements, if any. If the developer proposes that the project not be subject to impact fees or other fees regularly imposed on a development of the same type, final approval will be by the City Council . (3130-3/92) (c) The Planning Commission/City Council shall review the subject Affordability Agreement concurrently with the development proposal . No project shall be deemed approved until the Affordability Agreement has been approved by the appropriate reviewing body. (3130-3/92) (d) The Planning Commission/City Council may place reasonable conditions on the granting of the density bonus and any other incentives as proposed by the applicant. . However, such conditions must not .have the effect, individually or cumulatively, of. impairing the objective of California Government Code Section 65915 et seq. , and this article, of providing affordable housing for qualifying residents, lower or very low income households in residential projects. (3130-3/92) 3/92 l l ), J 9637.4(e)--9637.5(b)5 Huntington Beach Ordinance Code (e) A monitoring fee as established by resolution of the City Council , shall be paid by the applicant to. the City prior to. issuance of a- certificate of occupancy for the first unit. This fee shall be in addition to any other fees required for the processing of. the conditional use permit, environmental analysis;; and/or any other.. entitlements. required. (3130-3/92) 9673.5z Required findings for approval .- (3130-3/92) .. ° (a) D'ensity bonus. In granting .a- conditional use permit for a density bonus, the. Planning, Commission/City: Council shall make all of the following findings:- -(3130-3/92) (1) The proposed project, which includes a density bonus, can be adequately. serviced by the City and County water, sewer,. and storm drain systems,- without significantly impacting the overall service or system. (3130-3/92) (2) The proposed project, which includes a density bonus, will not have a significant adverse impact on traffic volumes and road capacities, school enrollments, or recreational resources. (3130-3/92) (3) The proposed project which includes a density bonus is compatible with the physical character of the surrounding area. (3130-3/92) (4) The proposed project which includes a density bonus is consistent with the overall intent of the General Plan. (3130-3/92) (b) Other incentives. A request for an additional incentive shall not.. be denied by the Planning Commission or City Council unless a finding is made that the incentive is not necessary to the establishment of affordable units. (3130-3/92) In granting any other incentives as defined in this article, the Planning Commission/City Council shall be required to make all of the following findings: (3130-3/92) (1) The granting of the proposed other incentive(s) will not have an adverse impact on the physical. character of the surrounding area. (3130-3/92) (2) The granting of the proposed other� incentive(s) is consistent with the overall intent of the General Plan. (3130-3/92) (3) The granting of the proposed other incentive(s) will not be detrimental to the general health, welfare, and safety of persons working or residing in the vicinity. (3130-3/92) (4) The granting of the proposed other incentive(s) will not be injurious to property or improvements in the vicinity. (3130-3/92) (5) The granting of the proposed other incentive(s) will not impose an undue financial hardship on the City. (3130-3/92) 3/92 CHAS Comprehensive Housing Affordability Strategy State and local governments that apply for, or receive, certain direct funding from the U.S. Department of Housing and Urban Development (HUD) must have a HUD—approved CHAS. The CHAS identifies a jurisdiction's needs for both affordable and supportive housing, while outlining an overall strategy to address those needs. A locality must not only address needs and market conditions, identify resources and establish a one year investment plan—along with the initial five year strategy—but it must also specify priorities in the form of goal statements. Huntington Beach has articulated the following six goals in its five year CHAS: 1. Rehabilitate the City's existing substandard housing stock in order to preserve neighborhoods. a 2. Provide opportunities for home ownership for low and moderate income first time buyers. 3. Provide supportive housing assistance for the "at risk" population. 4. Expand the housing stock for all segments of the community, but particularly for lower income households. 5. Preserve existing affordable housing for residents with special needs, especially for large families and elderly households. 6. Ensure that persons displaced by redevelopment activities receive financial assistance and replacement units on a one—for—one basis. The CHAS is very similar to the housing element in both scope and purpose, but it only supercedes the housing element to the extent that federal funds are involved. A quality CHAS document should complement a city's housing element, and Huntington Beach's CHAS has accomplished this task quite well. (6255d) .=�_.�:.��_CHAS��4nnual Performance: Repast for. City of Huntington rc-.5 a CHAS � Appendix B U.S. Department of Housing and Urban Development. Office of Community Planning and Development Cover Sheet Comprehensive Housing Affordability Strategy (CHAS) Instructions for Local Jurisdictions jar„e d Jurisdicion: Type of Submission:(mark one) :ity of Huntington Beach New Frve-Year CHAS:(enter fiscal yrs.) FY: through FY: Name of Contac Person: Telephone No: Stephen Kohler (714) 536-5582 X� AnnualPlan 1991/1992 Lisa Moreno forFTPerformance Recur Ad 6e": (marls one) epartment of Economic Development Initial Submission 2000 Main Street, . 5th Floor Huntington Beach , CA 92648 Resubission of Disapproved CHAS The Jurisdiction HUD Approval . Name of Authorized Otrrdat Name of Authorized Otricat Signature d Date: S+gnature 6 Date: X X form HUD40M (9 z Vi"� CITY OF HUNTINGTON BEACH COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) ANNUAL PERFORMANCE REPORT FOR FISCAL YEAR 1991/92 December 28, 1992 Prepared by: City of Huntington Beach Department of Economic Development with Assistance from: Cotton/Beland/Associates, Inc. 747 East Green Street, Suite 400 Pasadena, California 91101 749.00 . t CITY OF HUNTINGTON BEACH COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) A 'NUAL PERFORMANCE REPORT FY 1991/92 TABLE OF CONTENTS Page . I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1 II. ANNUAL PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . H-1 A. RESOURCES MADE AVAILABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1 Priority O 1 Expand the Housing Stock for All Segments of the Community, Particularly the Lower Income Households . . . . . . . . . . . . . . . . . . . . . H-2 0 One-Year Goals for Fiscal Year 1991/92 0 Programs, Activities, and Resources o Fulfillment of Matching and Leveraging Requirements Priority '2 Rehabilitate the City's Existing Single-Family and Multi-Family Housing Stock in order to Preserve the City's Neighborhoods . . . . . . . . . . . . . . . . . . . . . . . . . 11-4 • One-Year Goals for Fiscal Year 1991/92 • Programs, Activities, and Resources • Fulfillment of Matchil-ig and Leveraging Requirements Priority r 3 Provide Supportive Housing Needs Assistance for "At-Risk" Population . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-6 0 One-Year Goals for Fiscal Year 1991/92 0 Programs, Activities, and Resources 0 Fulfillment of Matching and Leveraging Requirements Priority #4_ Provide Opportunities for Homeownership, for Low/Moderate Income Residents, Particularly for First-Time Homebuyers Through Private Projects and Funding Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-8 0 One-Year Goals for Fiscal Year 1991/92 0 Programs, Activities, and Resources C Fulfillment of Matching and Leveraging Requirements Huntington Beach Table of Contents CHAS Annual Performance Report i December 28, 1992 `814 TABLE OF CONTENTS Page Priority #5 Provision and Preservation of Affordable Housing for Residents with Special ?seeds, Especially for Large Families and Elderly . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-10 0 One-Year Goals for Fiscal Year 1991/92 0 Programs, Activities, and Resources 0 Fulfillment of Matching and Leveraging Requirements Priority 1#6 Ensure that Persons Displaced by Redevelopment Activities Receive Financial Assistance and Replacement Units on a One-for-One Basis, and that New Units are Produced in Redevelopment Project Areas as Required by the California Health and Safetv Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-12 0 One-Year Goals for Fiscal Year 1991/92 0 Programs, Activities, and Resources 0 Fulfillment of Matching and Leveraging Requirements B. GEOGRAPHIC DISTRIBUTION OF RESOURCES . . . . . . . . . . . . . . . H-13 III. OTHER ACTIONS III-1 A.- PUBLIC POLICIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-1 B. INSTITUTIONAL STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-2 C. INTERGOVERNMENTAL COOPERATION . . . . . . . . . . . . . . . . . . . . . III-2 D. PUBLIC HOUSING IMPROVEMENTS . . . . . . . . . . . . . . . . . . . . . . . . III-3 E. PUBLIC HOUSING RESIDENT INITIATIVES . . . . . . . . . . . . . . . . . . III-3 F. AFFIR-IZATTVELY FURTHERING FAIR HOUSING . . . . . . . . . . . . . . . III-3 Huntington Beach Table of Contents CFL4S Annual Performance Report ii December 2$ 1992 TABLE OF CONTENTS Page IV. ASSESSMENT OF ANNUAL PERFORMANCE . . . . . . . . . . . . . . . . . . IV-1 A. EFFECTIVENESS IN ACHIEVING FIVE-YEAR STRATEGY OBJECTIVES AND GOALS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-1 B. FUTURE ACTIONS TO UNDERTAKE TO IMPROVE PERFORMANCE IV-2 V. APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . V-1 A. PUBLIC REVIEW PROCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-1 A.COMMENTS RECEIVED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-1 Huntington Beach Table of Contents CHAS Annual Performance Report iii December 28, 1992 L INTRODUCTION Title I of the National Affordable Act established the requirement that States and local governments that apply for direct assistance under certain HUD programs have a Comprehensive Housing Affordability Strategy (CHAS) approved by HUD. The Act also requires jurisdictions that submitted a full five- year CHAS for Fiscal Year 1991/92 must submit an annual performance report for Fiscal Year 1991/92. Submission of the performance report for Fiscal Year 1991/92 to HUD must be made by October 1, 1992 but no later than December 31, 1992. The Huntington Beach CHAS Annual Performance Report consists of two components. The first component describes the City's progress in carrying out the One-Year Action Plan for Fiscal Year 1991/92 set forth..in the Five-Year CHAS. The second component includes an analysis of the City's one-year performance in relation to meeting its five-year goals, and any adjustments which will be made as a result. Huntington Beach Introduction CHAS Annual Performance Repon j-1 November 25, 1992 IL ANNUAL PERFORMANCE A. RESOURCES '`LADE AVAILABLE This section of the Annual Performance Report discuss resources made available, by source and by administering agency. It also includes a comparison between actual resources received versus resources planned to receive in the CHAS annual plan. Spec program activities undertaken by the City are described under each priority and comparison is made between the Citys performance during the past year and goals identified in the One-Year Action Plan. This discussion also identifies resources pursued, as well as categories of residents assisted. (For a detailed description of implementing programs, refer to the City's Five-Year CHAS or the .Annual Plan for Fiscal Year 1992/93.) Following this discussion of program activities, a description of how matching/leveraging ng requirements were fulfilled is provided for each priority. Discussions on geographic allocation of resources and pattern of actual investment compared to planned investment pattern are consolidated for all priorities and prodded at the end of this section. For the purpose of CHAS annual performance reports, HUD has established the following income categories: c Very Low Income (0-30 percent of Area Median Family Income) • Very Low Income (31-50 percent of Area Median Family Income) • Low Income (5 1 - 80 percent of Area Median Family Income) • Moderate Income (81-95 percent of Area Median Family Income) • Middle Incorne (96-120 percent of Area Median Family Income) For this Annual Performance Report, Middle Income category has been combined with Moderate Income category to include households earning between 81 and 120 percent of the area median family income. The 1992 HUD_ established median family income for Anaheim-Santa Ana area is S52,700. Huntington Beach Annual Performance CHAS Annual Performance Report H-1 December 28, 1992 1� Priority # 1 Expand the Housing Stock for All Segments of the Community, Particularly the Lower Income Households One-Year Goals for Fiscal Year 1991/92 o To develop a plan with City officials in cooperation with local lenders for development of target areas. o To maintain second units as an option to rehabilitation and increased rental assistance for elderly. o To negotiate development of 92 unit project in Talbert-Beach. o To determine feasibility of using HOME Program funding for new construction of affordable housin;. Programs, Activities, and Resources A total of 764 households were provided with rental assistance through the Section 8 Certificate and Voucher programs. Of these 764 households assisted, 213 were elderly households, 355 were small families and 196 were large families. Program 1A: New Construction A significant amount in Redevelopment Set-Aside funds was committed in the previous Fiscal Year 1990/91 for the development of affordable housing. However, no assisted housing units were completed during the last fiscal year due to the long time frame involved with new construction projects. A total of $750,000 in Redevelopment Set-Aside funds was used to assist in the development of the 164-unit Five Points Senior Villas. This project is currently under construction and the units, including 48 assisted units, will come on line during Fiscal Year 1992/93. The Cites+ is currently negotiating a Disposition and Development Agreement with the project developer of the Talbert Beach project which has been reduced from 92 to 88 units. Project developer had already achieved entitlement for two of the three parcels on the project site. Huntington Beach evaluated the feasibility of using HOME funds for a new construction project and will use $426,150 of the City's total $881,000 HOME Huntington Beach Annual Performance CHAS Annual Performance Report 11-2 December 28, 1992 �I entitlement for.construction and/or a land write-down on four rental units for very low income households during Fiscal Year 1992/93. Also, consistent with AB 315, Huntington Beach will be preparing a Compliance Plan for each of its five redevelopment project areas, which sets forth a strategy to fulfill inclusionary housing production requirements. Expenditure of Set-Aside funds will be evaluated as part of these plans. Program I B: Second Unit Ordinance Huntington Beach amended its zoning ordinance by adding a new subsection pertaining to second units in single-family residences. Applications for second units construction currently require a Conditional Use Permit. Program I C: Section 8 Rental Assistance The City was successful in acquiring.an additional allocation of 82 Section 8 certificates and 17 vouchers for Fiscal Year 1991/92. Approximately $5,105,000 was granted by HUD to subsidize a total of 764 very low income households in Huntington Beach under the Section 8 programs. Of these 764 households, 213 were elderly households, 355 were small families and 196 were large families. Fulfillment of Matching and Leveraging Requirements Recipients of Section 8 vouchers and certificates were required to leverage the rental assistance by paying up to 30 percent of their income on rents. Huntington Beach Annual Performance ^' CHAS Annual Performance Report 11-3 December 28, 1992 1 y Priority #2 Rehabilitate the City's Eusting Single-Family and Multi-Family Housing Stock in order to Preserve the City's Neighborhoods One-Year Goals for Fiscal Year 1991/92 o During FY 1992, rehabilitate 80 single family properties for the benefit of low and moderate income households. o To rehabilitate 36 units with Rental Rehabilitation Program funds. o To establish loan policy and program guidelines for uses of Redevelopment Housing Set Aside Funds. o To develop a monitoring plan and survey schedule to assess marginal residential..4eas of the City. o To handle 300 code enforcement actions. o To discuss with local lenders their increased participation in rehabilitation programs. Programs, Activities, and Resources Huntington Beach accomplished rehabilitation of 25 owner-occupied and 44 rental units during Fiscal Year 1991/92, assisting 26 very low income (0-30% of County median), 25 very low income (31-50% of County median), and 18 low income households. Of these 69 households assisted, 11 were elderly households, 52 were small households, and 6 large households. Program 2A: Owner-Occupied Rehabilitation This program utilizes CDBG funds and program income to assist low and moderate income owner-occupants to rehabilitate their units. Last year, a total of 24 loans amounting to $304,958 were made to perform rehabilitation works and one loan in the amount of $18,000 was made to eliminate spot blight. Of these 25 units rehabilitated, 11 were mobile homes occupied by elderly households, 8 were small units, and 6 were large units. An estimated 40 lower income persons benefitted from this assistance. Huntington Beach Annual Performance CHAS Annual Performance Report 11-4 December 2$ 1992 Program 2B: Rental Rehabilitation CDBG Multi-Family Rehabilitation offers assistance to multi-family property owners to rehabilitate their buildings. Ten loans were issued utilizing $218,675 in CDBG funds. A total of 44 units were rehabilitated and approximately 176 lower income residents benefitted from this assistance. All units rehabilitated were occupied by small households with an estimated average household size of four persons per unit. Program 2C: Code Enforcement During Fiscal Year 1991/92, Huntington Beach expended 536,625 in CDBG funds- for the administration of the City's Code Enforcement program. Approximately 739 inspections were made. Areas served by this program included: Oakyiew area (Tract 994.02), Amberleaf area (Tract 994.13), Florida/Yorktown (Tract 993.05), Oldtown (Tract 993.03), and South Shores (Tract 992.14). Program 2D: ficreased Leveraging of Private Resources Due to the strengthening of the Community Reinvestment Act, local lenders are now strongly encouraged to demonstrate significant commitment to local community development efforts. Program 2E. Rehabilitation Rebates No owners applied for assistance under this program during Fiscal Year 1991/92. w Program 2F. ,'Monitor Marsinal Neighborhoods The City has developed a monitoring plan and survey schedule to assess marginal residential areas of the City. The City has begun its Housing Inventory Survey in October, 1992 for the purpose of determining the general condition of the City's housing stock. This survey is being focused upon single-family dwellings, apartments, and overall neighborhood conditions. The survey is. expected to take approximately ten to twelve months and will provide valuable information on identifying both housing and neighborhoods in need of possible rehabilitation/enhancement. The monitoring plan will begin in Fiscal Year 1992/93. Fulfillment of Matching and Leveraging Requirements The City's rehabilitation programs, other than rental rehabilitation, do no require matching of funds. Huntington Beach Annual Performance CHAS Annual Performance Repon II-j December 28, 1992 1� Priority #3 ProNide Supportive Housing Needs Assistance for "At-Risk" Population One-Year Goals for Fiscal Year 1991/92 o To develop guidelines for both the emergency foreclosure and rent relief programs in anticipation of future year funding. o . To continue financial support for services of the Orange County Fair Housing Council. o To establish formal network of homeless assistance, including job training, day care and shelter assistance. o To provide•25 elderly home sharing matches. Programs, Activities, and Resources During Fiscal Year 1991/92, the City contributed $129,567 in CDBG funds to social service agencies that provide housing-related services to residents of Huntington Beach and other nearby communities. Approximately 12,572 Huntington Beach residents were served by this agencies. Program 3A: Orange County Fair Housing Council During Fiscal Year 1992, the City had contributed $34,417 in CDBG funds to the Fair Housing Council of Orange County. A total of 2,004 persons were assisted. " Program 3B: Coordination with Social Service Agencies During Fiscal.Year 1991/92, the City reorganized its Human Resources Board to achieve an appropriate combination of services for the population at risk of becoming homeless. The City contributed a'total $95,150 in CDBG monies to the social service agencies-listed below. These agencies provided housing-related services to approximately 10,568 Huntington Beach residents, inclusive of approximately 500 homeless persons accommodated in emergency shelters and transitional housing facilities. Huntington Beach Annual Performance CHAS Annual Performance Report 11-6 December 2$ 1992 0 of Amount of Huntington CDBG Beach Social Service Agency Awarded Residents Served Community Services Program 58,500 400 Episcopal Service Alliance 59,650 788 Interval House 517,000 200 Orange Coast Interfaith 55,000 278 Orange County Youth and Family Service 55,000 60 Project Self-Sufficiency 535,000 926 Salvation Army 55,000 7,890 Shelter for the Homeless 510,000 26 Total I 595,150 10,568 Source: CDBG Grantee Performance Report for Fiscal Year 1991/92. Program 3C: Emergency Foreclosure Program The City did not pursue this program due to the lack of appropriate funding sources. Program 3D: Emergency Rent Relief The City did not pursue this program due to the lack of appropriate funding sources. Fulfillment of Matching and Leveraging Requirements All social services were funded partially with CDBG monies. Social service agencies were required to leverage City's assistance with funding from other sources, including private donations. Huntington Beach Annual Performance CHAS Annual Performance Report 11_7 December 28, 1992 Priority #4 Expansion of Housing Stock for All Segments of the Community One-Year Goals for Fiscal Year 1991/92 o To formalize written guidelines for a first-time homebuyer program, confirm lender participation and develop public information-campaign. o To publish and market the program and financial guidelines for the Shared Equity Program o To work with local lenders to establish a Mortgage Credit Certificate Program. Programs, ActiAties, and Resources The City executed a Disposition and Development Agreement on the 68-unit Third Block West Project with 33 units reserved for middle income first-time homebuyers. However, these units will not come on line until probably Fiscal Year 1993/94 due to the long tine-frame of mediation and litigation the City has been involved in. Program 4A: Financial Assistance for First-Time Hwnebuyers The City contacted local lenders on making home mortgage financing available ,for first-time homebuyers. Program 4B: Shared Equity Program The City executed a Disposition and Development Agreement (DDA) with the developer of the Third Block West project during last fiscal year. The City will use $825,000 in Redevelopment Set-Aside funds to.assist in the development of the Third Block West project, which is a 68-unit condominium project with 33 units reserved for middle income first-time buyers. The City is also currently negotiating a DDA with the developer of the Seaview I project which contains a total of 88 condominium units. The City plans to use $750,000 in Redevelopment Set-Aside funds to buy down the cost on 25 of these units to make them affordable to middle income first- time buyers. Both DDAs include a Shared Equity/Second Trust Deed component. Huntington Beach Annual Performance CHAS Annual Performance Report 11-8 December 2$ 1992 i Program 4C. Mortgage Credit Certificate Program This program is currently not authorized. Fulfillment of Matching and Leveraging Requirements Private funds were combined with Redevelopment Set-Aside funds for home ownership projects within the redevelopment project areas. Huntington Beach Annual Performance CHAS Annual Performance Report II-9 December 28, 1992 Priority #5. Provision and Preservation of.Affordable Housing for Residents with Special Needs, Especially for Large Families and Elderly One-Year Goals for Fiscal Year 1991/92 o To increase marketing efforts toward elderly single-family homeowners and large families with properties in need of rehabilitation. o To continue to provide grant funds to Social. Service Agencies which serve the supportive needs of special populations. o To target areas for the construction and rehabilitation of units for elderly and handicapped, close to transportation and life services. o To coordinate rental. assistance needs with the Orange County Housing Authority. o To develop an interest rate write-down program to preserve existing multi- family affordable housing projects. Programs, Activities, and Resources During Fiscal Year 1991/92, the City contributed $36,600 in CDBG funds to social service agencies that provide supportive services to elderly persons in Huntington Beach. An estimated 1,131 Huntington Beach elderly residents were served. Also, the City provided roommate-matching service to 140 seniors. Program 5A: Single-Family Rehabilitation Program The City has approximately 3,200 mobile homes; many are occupied by elderly households. The City promoted, through Channel 3 News and a small seminar conducted at a mobile home park, the availability of rehabilitation loans for mobile homes. Also, elderly owner households were eligible for rehabilitation programs available city-wide for owner households. (Refer to Program 1A for other achievements during Fiscal Year 1991/92.) Program 5B: Supportive Services for Elderly The City contributed a total $36,600 in CDBG monies to the following social service agencies that provided supportive services to approximately 1,131 Huntington Beach elderly residents: Huntington Beach Annual Performance CHAS Annual Performance Report 11-10 December 2a 1992 I� # of Amount of Huntington CDBG Beach Seniors Social Service A_-encv Awarded Served Feedback Foundation Inc. $17,000 742 Huntington Valley Adult Day Care $5,000 33 Orange County Consolidated Transportation Service 514,600 356 Total -T-S36,600 1,131 Source: CDBG Grantee Performance Report for Fiscal Year 1991/92. In addition, the City used general funds to operate the Senior Shared Housing Program. The City was successful in matching 140 seniors under the City's Senior Home Sharing program. Also, as previously indicated, 213 elderly households received Section 8 rental assistance during Fiscal Year 1991/92. Program 5C. Handicapped Grant Program No homeowners or investor-owners requested assistance under this program. Thus, no handicapped grants were made during last fiscal year. Program 5D: Preserving Affordable Multi-Family Housing As part of the City's Housing Element amendment, an inventory and description of the City's assisted housing stock was prepared and programs were adopted t"o facilitate their preservation. None of the City's assisted housing projects was at risk of converting to market rate housing during the last fiscal year. However, the City will continue to monitor the status of these projects. Fulfillment of Matching and Leveraging Requirements Social service agencies supported by the City utilized CDBG funds to leverage a variety of private and non-Federal funds. Rehabilitation loan applicants weie required to seek funding from other sources, such as private lending institutions, to leverage City loans when costs of improvements exceeded maximum loan limits prescribed under the rehabilitation programs, Huntington Beach Annual Performance CPL4S Annual Performance Report II-11 December 2$ 1992 Priority #6 Ensure that Persons Displaced by Redevelopment Activities Receive Financial Assistance and Replacement Units on a One-for-One Basis, and that New Units are Produced in Redevelopment Project Areas as Required by the California Health and Safety Code Fiscal Year 1991/92 One-Year Goals o To develop a displacement assistance policy and target funds for financial assistance. o To assure that mobile home residents are not displaced without assistance. Programs, Activities, and Resources Program 6A: A&bile Home.Ordinance This ordinance provides minimum standards for an acceptable mobile home relocation assistance plan if a mobile home park is converted to other uses. (Refer to Program 6B for accomplishment.) Program 6B: Assistance to Displacees Relocation assistance was provided to 34 mobile home occupants in the Driftwood Mobile Home Park. As part of the City's redevelopment objective for the Main Pier Redevelopment Project Area, an estimated 200 mobile home occupants in the Driftwood Mobile Home Park will be relocated to make room for redevelopment activities. The City expended $190,385 in CDBG funds during last fiscal year to pay for the consulting fees for the relocation of residents and businesses in Main Pier area. An agreement was reached between the City's Redevelopment Agency and tenants in Driftwood Mobile Home Park that the tenants will not be displaced without assistance. During last fiscal year, the Redevelopment Agency purchased 34 mobile homes in the Driftwood Mobile Home Park and paid relocation assistance to those 34 households using Redevelopment monies. Fulfillment of Matching and Leveraging Requirements Displacees may leverage their relocation assistance with private funds. Huntington Beach Annual Performance CHAS Annual Performance Report I1-12 December 2$ 1992 cl B. GEOGRAPHIC DISTRIBUTION OF RESOURCES AND PATTERN OF INVESTMENT The geographic distribution of resources committed by the City during Fiscal Year 1991/92 was consistent with the goals and objectives identified in the City's Five-Year CHAS. Huntington Beach has targeted several neighborhoods characterized by high levels of housing deterioration for rehabilitation assistance. These Neighborhood Enhancement Target areas include the following ten census tracts: 995.08, 994.10, 994.11, 994.02, 994.13, 993.05, 993.02, 993.03, 992.20, and 992.14. Code enforcement, Operation LOGOS, and residential rehabilitation loans are being focused in these areas, as identified on the following map. During Fiscal Year 1991/92, a total of 739 inspections were performed by the City's Code Enforcement division. Locations for inspections made included: Oakview area (Tract 994.02), Amberleaf area (Tract 994.13), Florida/Yorktown (Tract 993.05), Oldtown (Tract 93.03), and South Shores (Tract 992.14). Owners and investor-owners cited for code violations were informed of rehabilitation loans available to make corrective repairs or improvements. A total of 24 owner-occupied and 44 rental units were rehabilitated with assistance from the City's rehabilitation programs. The City also has five Redevelopment Project Areas, where much of the affordable new residential construction was focused. In Fiscal Year 1991/92, the Redevelopment Agency executed a Disposition and Development Agreement with the developer of the 68-unit Third Block West project with 33 units reserved for middle income first time homebuyers. This project will be located in the Main Pier Redevelopment Project Area. Other progran s and services are provided by the City and other agencies on a city-wide basis. Huntington Beach Annual Performance CHAS Annual Perjo mance Report II-13 December 28, 1992 `0� � a HVDDOOM t QNII!\ O+/lNH •twMcl yr� �5 �� Y twm..r+t c NrrrnO wrorooty f C=� NINETH ST. � zC�s�sF �ry a�c�Dc�mi�DoDoD y1. s EIG14TIl ST. < Y < Y < —� C�TLI n t: •� n#'> SEYFNT14 ST.OEM tt :d. ............ : SIXTH ST. PECAN ST. G'�6 1 � xx FIFTH ST. 9�9 HS PIER D r .,+�::�.::�`' MAIN ST. vunuc �� i •PARKING :. J� O THIRD ST. O SY n O �,. -rt ., •cikt::tio FIRST ST. O 0 NCO < FekN;23 t•r f r` bf3 C'. p t1 U G G p 1• 'd� (P c v�� A4A uuuuuuuuuuuuuu � � v � CD CD CD CD CD CD CD m 1 0 ip CDCDCDmmCD � �,� >a 0 CDCDCDCDCDmCDCDCDCDmmCDCD _ 0 CDCDCDCDCDCD�CDCD®CDCD®CD .�C � 0 MCDCD[0IflEDCDCDCDCDCDCD®CD iluncl I mCDCD CD CD CD CD CD CD CD CD CD CD CD CD CD c Ir IN➢ r , ,f St,,s'•;;,�.�,v . ,�s`' Fqp�EE[�[�pq� ] PACIFIC C_,,SGIWAY PACIFIC U)ASI I"WAY 1 u4IIIJGIOfI ItAol' "CNN NAOI AOOIf(0 urTle(I 6.Igo f '(�R70 f(II(AII(R 70,IVIl ►ACM(ICipll /AC1IK OC[/iN J� 3YORgoWN AVE.2, q a ƒ . NOT_$CA- } \ / ~ / \ ) /+Gc�G . \ \ z \ ) WICHl AIAVE. / 7 � . » . \ \ ) yr<E AVE. K 2 ) & § $ < ) cc2 = 6. z \ \ k . «y & < & • w & __:x�CAE ;� &' � � � REDONDO CIRCLE ' --PAR ult ,\ -- 1 � 1 I I I � r„ ni `�\ KOVACS DR. I I b I�1 1�1 11 O JpLt`l IN BARON CIRCLE �0 1 1 x wAK4t�!2�.F: oZ� JOYFUL LN. BELL CIRCLE BEACH BLVD. c� • ffi NICHOLS STREET P aO G DAIRYVIEW DR. p EMERALD LANE y to v JACQUELYN LANE D OAK LANE KOLEDO LANE 6 i F tA D N AS11 STREET QUEENS LAN KEELSON LANE UELM STREET b BEACH BLVD. ii i m<FADDEN AVE. PUBLIC st .ti c �F 5 N NOT TO SCALE QUASI-PUBLIC �4 ,::•;'•:�:::,•;: NOT A PART {W .M, ... IN IT 0 ST UT/ NA DEVEIOPMENT .?.;{.r{::•.•:is n >< ... i>3^ta 0 - - -Are-�• .0...;....... 3. — - J — G ';":-.'GENERAL COMMERCIAL AL co i V �.w.. •-:y}::iii;>';r:_?::�::;::_T:::ii:%�:t:Y:ii?::'::i :isi!•:<4i::i?.`3J:C:{�iii-�:::i>i?:i:i::i:�i:�i:ii:j]i::::::ii iiii$i>i?:?'ii:i:><2::i:;:jiij:v.'•Jii<ii:`i:vv'^':i> W .... :ii v.:i :2 r .......... iu i S .ii�. .al S S S 2 S B. INSTITUTIONAL STRUCTURE Huntington Beach has initiated a series of efforts to restructure its housing service delivery system in order to more efficiently provide housing services to its residents. The City restructured the organizational capacity of its Economic Development and Community Development departments during the last fiscal year. The Community Development Department is now responsible for housing rehabilitation programs, the HOME program, and the housing element. The Economic Development Department has maintained responsibility for implementation of redevelopment housing programs, and for administration and overseeing of the CDBG program. C. INTERGOVER\�1ENTAL COOPERATION The City works with the State, local and private agencies in obtaining funding and providing housing-related services. Huntington Beach applied for and obtained funds from the following agencies: o HUD (Community Development Block Grants) o HUD (Home Investment Partnership Program (HOME)) o HUD (Section 8 Rental Assistance) In Fiscal Year 1991/92, Huntington Beach provided CDBG funds to the following local non-profit agencies that provide housing-related services: o Community Services Program o Episcopal Service Alliance . o Interval House o Orange Coast Interfaith o Orange County Youth and Family Service o Project Self-Sufficiency o Salvation-Army o Shelter for Homeless The City also contributed CDBG funds to the following agencies that provide supportive services for the City's elderly residents: o Feedback Foundation Inc. o Huntington Valley Adult Day Care o Orange County Consolidated Transportation Service Huntington Beach Other Actions CHAS Annual Performance Report 111-2 December 28� 1992 01 The City has been and will be supportive of direct applications for funds for local CHDOs and other entities, including the Habitat for Humanity. The City will support all future rehabilitation efforts by other entities except when a project's objectives are not consistent with the objectives of the City. In addition, the City will continue to support funding applications for local non-profit service providers, and the City will provide notice to non-profits on its bid list when it receives a Notice of Funding Availability (NOFA) for programs related to affordable housing. D. PUBLIC HOUSING IMPROVEMENTS There are no public housing projects located in the City. E. PUBLIC HOUSING RESIDENT INITIATIVES Not applicable. F. AFFIRMATIVELY FURTHERING FAIR HOUSING As part of the City's 1989 Housing Element Update, the City had adopted the following policies to ensure accessibility to decent housing for all: o Affirm a positive action posture to assure that unrestricted access is available to the community. o Promote housing which meets the special needs of handicapped and elderly persons. o Encourage the provision of adequate number of housing units to meet the needs of families of all sizes. SpecTically, the City will continue to take the following actions to implement the above policies: o Continue to support fair housing services provided by the Orange County Fair Council. o 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. o Implement state and federal laws for access and adaptability for the physically handicapped. Continually adopt updates to the State Huntington Beach Ocher Anions CHAS Annual Performance Report 111-3 December 28, 1992 Uniform Building and Housing Codes to reflect current accessibility requirements. o Fund rehabilitation loans which include improvements to make housing accessible to handicapped persons within designated neighborhoods. Huntington Beach Ocher Actions CHAS Annual Performance Report 111-4 December 2$ 1992 l� ti IV. ASSESSMENT OF ANNUAL PERFORMANCE A. EFFECTIVENESS IN ACHIEVING M-EAYEAR STRATEGY OBJECTIVES AND GOALS Huntington Beach was successful in pursuing a variety of funds for the provision of affordable housing: The City indicated in its One-Year Action Plan of the Five-Year CHAS that $700,000 in CDBG funds would be expended on housing rehabilitation and supportive housing services. A total of 5934,810 in CDBG funds was actually expended on such activities during the last fiscal year. Approximately 57,000,000 in Redevelopment Set-Aside funds accumulated since adoption of the Redevelopment Plan, inclusive of the S 1,041,548 received last fiscal year, was available for affordable housing development. Also, $110,000 in Rental Rehabilitation program funds was received for multi-family rehabilitation activities. The City was also successful in acquiring an additional allocation of Section 8 certificates and vouchers for Fiscal Year 1991/92. Overall, the City was successful in meeting all but the following two annual goals for Fiscal Year-1991/92: o Rehabilitate 80 single-family properties. o Formalize written guidelines for a first-time honebuyer program, confirn lender participation, and develop public information campaign. As discussed in Section H of this report, the City achieved rehabilitation of 25 of the targeted 80 single-family homes. While the City was not able to achieve its prior one-year goal, the City does not anticipate any problem in achieving the five-year goal of rehabilitating 200 single-family homes. The City's CHAS Annual Plan for 1992/93 indicates that the City has funds to provide owner- occupied rehabilitation loans to 47 homes, leaving a total of 128 units to be rehabilitated during the next three CHAS annual cycles, or approximately 43 units each fiscal year. Also, although the City did not formalize written guidelines for a first-time honebuyer program, the City has been actively promoting homeownership opportunities through redevelopment activities. Two projects to be assisted with Redevelopment Set-Aside funds during the next coming year involve a shared equity component. The City does not intend to change the existing five-year goals as described in the Five-Year CHAS. However, the order of housing priorities from the Five- Year CHAS has been reorganized based on the relative importance of each. Huntington Beach .9ssessment of Annual Performance CHAS Annual Performance Report IV-1 December2S� 1992 s , B. FUrUTRE ACTIONS TO UNDERTAKE TO IMPROVE PERFORMANCE Four actions the Citv has or can undertake to improve future performance include: 1) timely submittal of the Annual CHAS Plan for 1992/93; 2) increased coordination between City departments; 3) alternative funding sources; and 4) advertising of City rehabilitation program. 1. The City of Huntington Beach has expended considerable resources to ensure that the 1992/1993 CHAS Annual Plan is submitted in a timely fashion. This effort will allow the City to coordinate with the federal funding cycle and CHAS Annual Plan deadlines. The timely submittal of the 1992/1993 Annual Plan will provide Huntington Beach the opportunity to pursue and implement a variety of housing programs. 2. The reorganization of the City's Economic Development and Community Development departments allows for increased coordination between the two departments. 3. A number of alternative funding sources are available to rehabilitate or increase a community's housing stock: Both local redevelopment monies and Federal HOME monies provide a significant opportunity to achieve these goals. 4. To improve public outreach for the City's rehabilitation programs, the City will periodically advertise programs in the local paper and Channel 3 to promote interest in rehabilitation efforts. Huntington Beach Assessment of Annual Performance CHAS Annual Performance Report 1V_2 December 2$ 1992 .�y V. APPENDIX A. -PUBLIC REVIEW PROCESS Consistent with Federal requirements, the City provided numerous opportunities for public input in formulation of the City's housing strategy, including the following: 1. Public comment period: Pursuant to the CHAS citizen participation guidelines, copies of the proposed CHAS Annual Plan were made available for public review.and comment from November 25th to December 24th, 1992. A summary of the proposed CHAS Annual Plan for FY 1993 was published in the Los Angeles Times and Orange County Register and was made available in the following public places: 0 Economic Development Department 0 Community Development Department O City Clerk's Office 0 Central Library 0 Chamber of Commerce 0 Roger's Senior Center Also a copy of the Annual Performance Report has been sent to each of the City's_ Citizens Advisory Board (CAB) members. 2. Access to records: Reasonable access regarding the use of housing funds in the City are generally available at the City's Community Development Department and Economic Development Department. B. COMMENTS RECEIVED No comment on the Huntington Beach Annual Performance Report for Fiscal Year 1991/92 were received. Huntington Beach Appendix CHAS Annual Perforrnance Report V_1 November 2a 1992 Nv CHAS Annual Plan for Fiscal Year 1992/93 CottoMBelanrUAssociaMs, /nc. CHAS Appendix B U.S. Department of Housing and Urban Development office of Community Planning and Deyeloprnent Cover Sheet Comprehensive Housing Affordability Strategy (CHAS) Instructions for Local.Jurisdictions .;ane d Juris6dion: Type of Submission:(mark one) City of Huntington Beach New Frye-Year CHAS:(enter fiscal yrs.) FY: through FY: narsne of Cornad Person: Telephone No: Stephen Kohler (714) 536-5582 � Annual Plan 1992/1993 Lisa Moreno for FY: Address: (mark one) Department of Economic Development Initial Submission 2000 Main Street, 5th Floor Huntington Beach, CA 92648 Resubission of Disapproved CHAS The Jurisdiction HUD Approval Name of Authorized Offidat Marne or Authorized Otridat S;gn.alure S Dale: S;V%alurs 3 Dale: X X '.V form HUD 4DD90 (9.SZ CITY OF HIM NGTON BEACH COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) ANNUAL PLAN FOR FISCAL YEAR 1.992/93 December 28, 1992 Prepared by: City of Huntington Beach Department of Economic Development with Assistance from: Cotton/Beland/Associates, Inc. 747 East Green Street, Suite 400 Pasadena, California 91101 749.00 5 CITY OF HUNTINGTON BEACH COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY (CHAS) ANN-UAL PLAN FY 1992/93 TABLE OF CONTENTS Page I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1 II. SUMMARY OF CHAS DEVELOPMENT PROCESS . . . . . . . . . . . . . . . II-1 III. STRATEGY IMPLEMENTATION . . . . . . . . . . .-. . .. . .. . . . . . . . . . III-1 A. INVESTMENT PLAN - IMPLEMENTING PROGRAMS AND ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-1 Priority I 1 Expand the Housing Stock for All Segments of the Community, Particularly the Lower Income Households . . . . . . . . . . . . . . . . . . . . . IlI-3 0 Housing Activities/Programs and Resources 0 Matching and Leveraging Requirements 0 Support of Applications for Funding by Other Entities Priority #2 Rehabilitate the City's Existing Single-Family and Multi-Family Housing Stock in order to Preserve the City's Neighborhoods . . . . . . . . . . . . . . . . . . . . . . . . . III-7 o Housing Activities/Programs and Resources • Matching and Leveraging Requirements • Support of Applications for Funding by Other Entities Priority _4 3 Provide Supportive Housing Needs Assistance for "At-Risk" Population . . . . . . . . . . 0 . . . . . . . . . . . . . . . . III-13 0 Housing Activities/Programs and Resources 0 Matchin; and Leveraging Requirements 0 Support of Applications for Funding by Other Entities Huntington Beach Table of Contents CHAS Annual Plan i December 2a 1992 TABLE OF CONTENTS Page Priority #4 Provide Opportunities for Homeownership, for Low/Moderate Income Residents, Particularly for First-Time Homebuyers Through Private Projects and Funding Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . III-17 G Housing Activities/Programs and Resources C_ Matching and Leveraging Requirements C Support of Applications for Funding by Other Entities Priority #5 Provision and Preservation of Affordable Housing for Residents with Special Needs, Especially for Large Families and Elderly . . . . . . . . . . . . . . . . . . . . . . . . . . . III-20 C Housing Acti�ines/Programs and Resources 0 Matching and Leveraging Requirements C Support of Applications for Funding by Other Entities Priority #6 Ensure that Persons Displaced by Redevelopment Activities Receive Financial Assistance and Replacement Units on a One-for-One Basis, and that New Units are Produced in Redevelopment Project Areas as Required by the California Health and Safetv Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-23 0 Housing Activities/Programs and Resources 0 Matching and Leveraging Requirements 0 Support of Applications for Funding by Other Entities Table 3A Table 3B B. GEOGRAPHIC DISTRIBUTION OF RESOURCES . . . . . . . . . . . . . .. III-30 C. SERVICE DELIVERY SYSTE\1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-30 Huntington Beach Table of Contents CH.4S Annual Plan jj December 2$ 1992 n TABLE OF CONTENTS Page IV.OTHER ACTIONS IV-1 A. PUBLIC POLICIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-1 B. INSTITUTIONAL STRUCTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-2 C. PUBLIC HOUSING IMPROVEMENTS . . . . . . . _. . ;. . . . . . . . . . IV-3 D. PUBLIC HOUSING RESIDENT INITIATIVES . . . . . . . . . . . . . . . . . . IV-3 E. CERTIFICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV-4 V. S'U V ARY OF CITIZEN COMMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . V-1 VI. APPENDIX . . . . . . . . . . . . . . . . VI-1 A. GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . VI-1 B. AMENTDMENT TO THE CHA.S FIVE-YEAR PLAN . . . . . . . . . . . . . . . VI-4 Huntington Beach Table of Contenu CHAS Annual Plan jjj December 28, 1992 I. INTRODUCTION Title I of the National Affordable Housing Act established the requirement that States and local governments that apply for direct assistance under certain HUD programs have a Comprehensive Housing Affordability Strategy (CHAS) approved by HUD. The CHAS is a comprehensive planning document that identifies a jurisdiction's overall needs for affordable and supportive housing and outlines a`strategy to address those needs. The Act requires each local jurisdiction to: • describe its housing needs and market conditions; 0 set out a five-year strategy that establishes priorities for meeting those needs; • identify resources anticipated to be available for the provision of affordable and supportive housing; and o establish a one-year investment plan that outlines the intended uses of resources. The CHAS replaces the Housing Assistance Plan (HAP) required for Community Development Block Grant (CDBG) Program funding and the Comprehensive Homeless Assistance Plan (CHAP) required by the McKinney Homeless Assistance Programs. The National Affordable Housing .Act also requires jurisdictions that subrnitted a full five-year CHAS for Fiscal Year 1992 rust submit an annual plan (one-year action plan) for.Fiscal Year 1993. Submission of the ar;nual plan for Fiscal Year 1993 to HUD must be made by October 1, 1992 but no later than December 31, 1992. The Huntington Beach CHAS Annual Plan for Fiscal Year 1993 is based upon the City's HUD-approved five-year strategy. This Annual Plan sets forth a specific strategy for expenditure of housing funds expected to be available during the next fiscal year, including goals for households to be served, and an implementation plan to guide activities to be undertaken. Hunringron Beach Introduction CHAS Annual Plan M December 2$ 1992. .- 1 II. SUMMARY OF CHAS DEVELOPMENT PROCESS The Huntington Beach Economic Development Department took the lead on behalf of the City in preparing the City's CHAS Annual Plan for Fiscal Year 1993. The Community Development Department also provided input regarding housing activities for which they are responsible, including residential rehabilitation, neighborhood revitalization, the HOME program, and the housing element Consistent with Federal requirements, the City provided numerous opportunities for public input in formulation of the City's housing strategy, including the following: 1. Public Hearing: The City properly advertised and conducted a public hearing on November 19, 1992 at 7:00 PM in the Boys and Girls Club located adjacent to the Civic Center. 2. Public comment period: Pursuant to the CHAS citizen participation guidelines, copies of the proposed CHAS Annual Plan were made available for public review and comment from November 25th to December 24th, 1992. A summary of the proposed CHAS Annual Plan for FY 1993 was published in the Los Angeles Times and Orange County Register and was made available in the following public places: 0 Economic Development Department 0 Community Development Department 0 City Clerk's Office 0 Central Library 0 Chamber of Commerce 0 Roger's Senor Center 3. Access to records: Reasonable access regarding the use of housing funds in the City are generally available at the City's Community Development Department and Economic Development Department. Huntington Beach Summary of CK4S Development Process CHAS Annual Plan II-1 December 28, 1992 M. STRATEGY BIPLE17ENTATION A. INVESTMENT PLAN - IMPLEAIENTING PROGRA.t'ViS AND ACTIVITIES The CHAS Annual Plan requires the City to evaluate each general housing priority identified in the City's Five-Year CHAS to be implemented during the 1993 Federal fiscal year. This section of the CHAS Annual Plan constitutes an "Investment Plan" which establishes the following items: — 0 Housing activities to be undertaken; 0 Programs and resources to be pursued; 0 Categories of residents to be assisted by tenure type, household size, and income level, including homeless and non-homeless persons with special needs; 0 Plans for fulfilling matching requirements and leveraging private and non-Federal fund with Federal funds; and C Support of applications for funding by other entities. Spec programs are described under each priority. This discussion also includes identification of activities to be undertaken, resources to be pursued, as well as categories of residents to be assisted. Following this discussion of programs, plans for fulfilling matching/leveraging requirements and support for local funding applications are described for each priority. Table 3A at the end of this-section summarizes the planned uses of resources during the coming year. Table 3B categorizes the City's annual housing goals for according to residents to be assisted by income, tenure, and household size. Only'units to be completed or rehabilitated with the involvement of federal funds, and households to be assisted with federally-funded services that will directly lead to the obtainment of affordable housing, including shelter accommodation, are included in Table 3B. For the purpose of CHAS plans, HUD has established the following income. categories: o Very Low Income (0-30 percent of Area Median Family Income) • Very Low Income (31-60 percent of Area Median Family Income) • Low Income (51 - 80 percent of Area Median Family Income) • Moderate Income- (81-95 percent of Area Median Family Income) • Middle Income (96-120 percent of .Area Median Family Income) Huntington Beach Strategy Irrplementation CHAS Annual Plan III-1 December 28, 1992 The 1992 HUD-established median family income for Anaheim-Santa Ana area is $52,700. For this Annual Plan, Middle Income category has been combined with Moderate Income category to include households earning between 81 and 120 percent of the area median family income. The order of housing priorities from the City's Five-Year CHAS has been reorganized based on the relative importance of each. Discussion of geographic allocation of resources and the City's service delivery system is consolidated for all priorities and follows the Investment Plan. Huntington Beach StrateSy Implementation CHAS Annual Plan 111-2 December 2& 1992 Priority # 1 Expand the Housing Stock for All Segments of the Community, Particularly the Lower- Income Households Huntington Beach plans to assist several affordable developments during the coming fiscal year using Redevelopment Set-Aside funds. However, only one of these projects, which consists of 48 units, is anticipated to be completed during the time frame of this Annual Plan. The targeted breakdown of these units to be assisted-is as follows: 8 very low income (0-300Io of County median), 8 very low income (31- 5007o of County median), 16 low income low income, and 16 middle income. Of these, 32 units will be rental units for lower income elderly households. Also,HOME funds are allocated to create one large and three small units for four renter households. Three projects to be assisted by the City using a variety of funding sources duril-ig Fiscal Year 1993, including those by the Habitat for Humanity and Orange County Community Housing Corporation, are targeted for very low income households. This segment of the population is usually more vulnerable to increases in housing costs or sudden loss of income, and therefore experience a high risk of becoming homeless. The City will continue to provide Section 8 rental assistance to 764 very low income households in the City. The household size breakdown is as follows: 213 elderly households, 355 small families and 196 large families. It can generally be estimated that half of these households earn less than 307/o of the County median income, and half earn between 30-50010 of median income. Only those units that will be assisted writh federal funds are included in Table 3B. Housing ActiN-ities/Programs and Resources Program ]A: New Construction Huntington Beach plans to utilize Redevelopment Set-Aside funds in conjunction with density bonus incentives to facilitate the development of affordable housing in the City. Redevelopment Set-Aside monies may be used to write down the cost of land for low and middle income Huntington Beach Strategy Implementation CHAS Annual Plan 111-3 December 28, 1992 �1� housing, so that it becomes economically feasible for a private developer to build units which are affordable to low and middle income households. As part of the land write-down program, the City may also assist in acquiring and assembling properly and in subsidizing on-and off-site improvement costs. Approximately $2,605,000 of the City's Redevelopment set-aside fund will be allocated during the Federal Fiscal Year 1993 to assist in the development of affordable housing to lower and middle income households. The following list identifies projects to be assisted by the Redevelopment Agency through direct loans and grants,land assemblage and/or write-down, and density bonus incentives during Fiscal Year 1993 although only the first project is projected to come on line during the next year. 0 Five Points Senior Ullas (18651 Florida). S750.000 - 164 unit senior rental project of which Agency is participating through loan and grants for 48 units counted towards Main-Pier replacement housing needs (30 year). Among the 48 affordable units, 16 units will be set aside for very low income households, 1-6 units for low income, and 16 units for middle income. All units are for small elderly households. This project is currently under construction and assisted units will come on line during the coming fiscal year. 0 7902 Ronald Road. S280.00Q - The City will assist Habitat for Humanity in construction and/or land write-down for a four-plex development for very low income households. The project will provide home ownership of two units for small families and two units for large families. 0 Third Block West (300 .Wain Main Pier Preiect Area). S825.000 - Agency participation in the development of.a 68-unit condominium project with 33 units reserved for middle income first time buyers under the Second Trust Deed program. 0 Seaview 1 (10824 Jolly Lane, Talbert Beach Proiect Area). S750.000 - Agency participation in the development of an 88-unit for sale project; 25 units will be affordable to middle income households through the First-Time Buyer and Second Trust Deed Program Residential development projects to be assisted with public funds will be required to advertise available affordable u jts to the general public. Huntington Beach Strategy Implementation CHAS Annual Plan 111-4 December 28, 1992 �a Huntington Beach is an eligible participant of the HOME Investment Partnership Act and received an entitlement of S881,000 for the 1992 federal fiscal year. Of this entitlement, $426,150 has been allocated to assist the Orange County Community Housing Corporation in the construction and/or land write-down for four rental units 'for very low income households during the coming year. This project will provide affordable housing for one.large and three small family households. Furthermore, $220,850 of the HOME fund has been set aside for a Community Housing Development Organization (CHDO) to create low-income housing in the City. The City is in-the process of selecting a CHDO. Requests for Qualification (RFQ). will be sent to several non-profit housing organizations, including Habitat for Humanity, Orange County Community Housing, Shelter for the Homeless, and Barrio Housing. The City will also advertise the RFQ in local newspapers. Program 1B: Second Unit Ordinance Huntington Beach has amended its zoning ordinance 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 providing additional development through the use of existing infrastructure and should provide relatively affordable housing for low and middle income small households, within existing under- utilized structures. However, applications for second units currently require a Conditional Use Permit. Program 1 C. Section 8 Rental Assistance The Section .8 rental assistance program extents rental subsidies to very 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 their 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 io locate their own housing. Unlike in the certificate program, voucher recipients are permitted to. rent units beyond the federally determined fair inarket rent in an area provided the tenant pays the extra rent increment. Huntington Beach contracts with the Orange County Housing Authority to administer the Federal Section 8 Certificate/Voucher Program. Currently, 764 very low income households in Huntington Huntington Beach S:ra:cg Implementation CHAS Annual Plan IIl_5 December 2$ 1992 / Beach are assisted under the Section 8 certificate and voucher programs. Of these 764 households receNing rental assistance, 213 are elderly households, 355 are small families and 196 are large families. The City's goal will be to,-maintain this level of assistance for the coming year. Matching and Leveraging Requirements All matching requirements on the HOME funds for Fiscal Year 1992 have been waived by Congress and the President. However, the Redevelopment Set-Aside fund could be used to leveragc HOME monies for new construction. Support of Applications for Funding by Other Entities The City will be supportive of direct applications for funds by local CHDOs and other entities, including Habitat for Humanity and Orange County Community Housing Corporation. However, under the following special circumstances the City would need to consider the appropriateness of the funding application: • the project requires a zone change that is not consistent with its surrounding land uses or with the City's land use policy; o the CHDO soliciting support is not from the local community and has not established a reputation in the affordable housing field; and/or • density bonus requested by the project exceeds the State requirement and may result in development which is incompatible with the character of the surrounding area. Hunringron Beach Srrareg Implementation CHAS Annual Plan III-6 December 28, )992 Priority #2 Rehabilitate the City's Existing Single-Family and Multi-Family Housing Stock in order to Preserve the City's Neighborhoods The City's annual 'rehabilitation goal is to assist 304 units through Redevelopment Set-Aside, CDBG, and HOME funds. The targeted income breakdown is as follows: 96 very low income (0-30% of County median income), 87 very low income (31-50% of County-median income), 63 low income, and 58 middle income. Among the 246 units targeted for lower income households, the goal will be to achieve 199 renter households and 47 owner-occupied households. Also, of these lower income units, 60 units will be for large households and 186 for small households, including 67 in SROs. Only those units that will be rehabilitated using CDBG and HOME funds are included in Table 3B. Housing Activities/Programs and Resources Program 24: Owner-Occupied Rehabilitation The City's Housing Rehabilitation Loan Program, through the use of Community Development Block Grant program income, provides rehabilitation funds to qualified owner-occupants. The program is designed to assist households with lower incomes on a citywide basis and households with very low, low, median and above median incomes in designated rehabilitation target areas. The progran provides two forms of financial ;assistance - below market rate interest (BMRI) loans or deferred payment loans. The maximum loan amount for BMRI loans is $15,000 per property. The interest rates for participants are as follows: 0 3% BMRI loans available to families with very low and low incomes on a citywide basis. 0 6% BMRI loans available to families with median incomes. Activities wzl] be limited to the extent necessary to eliminate specific conditions detrimental to public health and safety. Loans are available on a city-v.ide basis. Huntington Beach Strang Implcmentazion CHAS Annual Plan III-7 December 2$ 1992 e 80Io BMRI loans available to families with above median incomes. Activities will be limited to the extent necessary to eliminate specific conditions detrimental to public health and safety. Loans are available on a city-wide basis. The maximum loan amount for a deferred payment loan is $8,500 citywide with up to $10,000 available to units in a rehabilitation target areas. Units to be rehabilitated must have been owned and occupied by the applicant at least one year prior to the date of application for a loan. All funds must first be used to eliminate building code violations. Remaining funds may then be used for improvements resulting in substantial weatherizing and energy conservation, improvements to major systems in danger of failure (such as heating and plumbing), roofing, exterior painting, pest treatments, and floor coverings. New construction or room addition will be allowed only when overcrowding exists; all improvements must be physically attached to the property and permanent in nature. The scope of work is reviewed and approved prior to funding the loan. CDBG funds will be available for making low interest and deferred interest loans to qualified low and moderate owner-occupied single- family units within targeted areas of the City. Low income owner- occupants of other types of housing are also eligible for assistance. Approximately $372,718 CDBG monies will be available for rehabilitating 24 mxmer-occupied properties during the corning Federal fiscal year. Approximately g234,000 of HO'41E funds will be used to rehabilitate owner-occupied mobile homes through the City's Owner-Occupied Rehabilitation program. An estimated 23 deferred payment loans will be made available for mobile homes occupied by very-low income (50 percent or below area median) property owners during the coming year. Program 2B: Renzail Rehabilitation The City's Multi-family Rental Rehabilitation Program is designed to maintain and improve the affordable rental housing stock and to otherwise assure that a decent, safe and sanitary living environment can be obtained for very low and low income renter households. The program also attempts to reduce household overcrowding. The program operates on a cit}tide basis; however, priority is given to projects located in the Oak\iew and Florida/Yorktown Target Areas. Huntington Beach Strategy Implementation CHAS Annual Plan jlI_g December 28, 1992 Through the rental rehabilitation program, the City has provided up to 50% of the costs of rehabilitation. The City's contribution is a combination of below market interest (60Io) loans for 50% of the costs and another 50% of the costs in deferred payment loans which require no payments to be made, no accrual of interest and no fees until such time as the rental property building is sold or title transferred. The property owner must "match" these public funds by securing private financing for the remaining 500Io of total rehabilitation costs. Property owner requirements have included responsible ongoing property management, proper long term property maintenance and avoidance of housing overcrowding. The City will focus rental rehabilitation efforts in the future on the Oakview, Florida-Yorktown and Amberleaf Circle neighborhoods, particularly for investor-owned multi-family properties which can be rehabilitated at a modest per unit cost. An Area Task Force for the purpose of developing strategies to combat crime and drug trafficking was established for the residential neighborhood bounded by Beach Boulevard, Ufica Avenue, Florida Street, and Yorktown Avenue. A section of this neighborhood was designated a neighborhood enhancement area by HUD in 1990 so that CDBG funds could be used for housing, rehabilitation, and public improvements. Also, the CDBG-funded Operation LOGOS program has also been active in the area for emergency cleanups of trash and graffiti. Operation LOGOS will receive S128,000 in CDBG funds for Fiscal Year 1992-93. Approximately S2,313,350 in CDBG and Redevelopment Set-Aside funds will be available to rehabilitate the following projects: 0 Cb-Wide Rehabilitation. S325.350 - Rehabilitation of 24 very low and low income rental units. 0 2300 Delaware. S196.000 - Rehabilitation of 14 very low income units. 0 Yorktown Beach SRO (727 Yorktown), 5200.00 - Proposal to rehabilitate an existing 6.7-room motel to a Single Room Occupancy (SRO) project. 2810 & 2820 0cm S520.000 - Rehabilitation of 52 low-muddle income units. Huntington Beach SrrateD,Implementation CHAS Annual Plan III-9 December 28� 1992 t_l 0 17171 & 17181 Elm (Oakview PrQ ect Area). 9400,000 - Proposal - 16 units submitted for review. 0 ?200 - 2200 Delaware. S672.000 - Rehabilitation of 48 low-middle income units. The City will also provide the owners of a 36-unit run down and crime ridden apartment complex located at 725 Utica Street with a low- interest deferred loan to completely rehabilitate the complex. Approximately $600,000 in Redevelopment Set-Aside funds will be used to rehabilitate this complex, with $100,000 in the form of a conditional grant and $500,000 as a deferred loan. In return for the City's investment, an Owner Participation Agreement and a Loan Agreement will be designed to require a 30-year covenant assuring tenant affordability at the very low income level, escrowed deferred maintenance funds, and professional management. Program 2C. Code Enforcement 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 debris, 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 failure to comply will result in code compliance proceedings. The City has allocated S54,000 in CDBG funds to be used for personnel and operating costs related to the enforcement of housing and maintenance codes in tar Qeted areas. Program 2D: Increased Leveraging of Private Resources The City intends to increase the level of financial commitment by the private sector. Specifically, local lending institutions will be increasingly asked io make tangible commitments to the City's neighborhood preservation/property rehabilitation efforts. Due to the strengthening of the Community Reinvestment Act as a result of the Financial Institutions Reform, Responsibility and Enforcement Act (FIRREA), local lenders are now strongly encouraged to demonstrate significant commitment to local community development efforts. Hunringron Beach Strategy Implementation CHAS Annual Plan 111-10 December 28, 1992 �O It is anticipated that local lender resources will be made available for first and second mortgage loans in conjunction with government subsidies for single family and multi-family properties, where the borrowers are likely to have decent credit and/or significant equity, but cannot afford the monthly carrying costs of 1001176 private lender financing at market rates. These private resources cannot take the place of government subsidies. However, local lenders funds can supplement these limited governmental resources, thereby allowing more units to be rehabilitated. Program 2E: Rehabilitation Rebates The City of Huntington Beach may leverage private funds by offering owner occupants a rebate of 5001o, 40010, 3001o, or 20010 based on income for preapproved rehabilitation work up to S6,000 annually. Program 2F.- Monitor Marginal Neighborhoods Monitoring housing conditions in neighborhoods considered at risk is needed in order to prevent more costly deterioration at a later date. This effort will require dedication of staff time on a regular basis to windshield survey the City and identify marginal areas. This activity will provide a greater awareness for neighborhood development. Most property owners will only make further investments.in their property if they believe that there is an optimistic future for the particular neighborhood where the property is located and that, their additional investment in their property will be matched by other owners. The Department of Com.mu-rmy Development has begun a city-wide Housing Inventory Survey in October, i992, concentrating on single- family homes, apartments, and overall neighborhood conditions. Mobile homes and condominiums have not been included as part of the scope of this effort. The purpose of the survey is to determine the condition of the City's housing stock in regards to property maintenance, appearance and general condition of the dwelling. The Housing Survey will assist both Code Enforcement and the Housing Section of the Community Development in accomplishing their long range goals. The survey is expected to take approximately ten to twelve months and will provide valuable information in identifying both housing and neighborhoods in need of possible rehabilitation/enhancement. Huntington Beach Strategy Implementation CHAS Annual Plan III-11 Decembcr2$ 1992 . LI Matching and Leveraging Requirements All matching requirements of HOME funds for Federal Fiscal Year 1992 have been waived by Congress and the Government. CDBG monies have no match requirements. In terms of leveraging, Programs 2D and 2E indicate a commitment on the part of the City to leverage private funds to maximize affordable housing achievements. Support of Applications for Funding by Other Entities Approval by the Huntington Beach Citizens Advisory Board (CAB) is required for all requests for CDBG funds. The City will support all rehabilitation efforts by other entities except if a project's objectives are not consistent with the those of the Redevelopment Agency. v Huntington Beach Strategy Implementation CH4S.4nn ual Plan jjj_12 December 24 1992 Priority #3 Provide Supportive Housing. Needs Assistance for "At-Risk" Population The City's annual goal is to continue to financially support a variety of agencies that provide housing-related services to Huntington Beach residents. An estimated 2,800 very low income (0-3007o of County median), 2,800 very low income (31-500Io of County median), 2,550 low income (51-80% of County median), and 2,550-mid3Te income Huntington Beach residents can be assisted by these agencies during the coming fiscal year, inclusive of about 3,600 persons from female- beaded families in.need of housing-related services and 550 homeless persons to be accommodated in emergency and.transitional shelters during the fiscal year. Only the 550 homeless persons to be assisted using CDBG funds are included in Table 3B. According to federal regulations, the other CDBG-funded services will not directly lead tc the obtainment of affordable housing and thus, are not included in Table 3B. Housing Activities/Programs and Resources Program 3.41: Orange Country Fair Housing Council Huntington Beach is a member of the Orange County Fair Housing Council. This Council receives all complaints of discriminatory practices in housing within the City. This body provides counseling and information on dealing with discrimination, landlord/tenant problems, special assistance for ethnic minority and single-headed households (which includes escort services to jocate adequate housing), bilingual housing literature and video-tape presentations, day-care services, and housing assistance counseling. The City has allocated S36,500 of CDBG funds to support fair housing services provided by the Fair Housing Council of Orange County. Services provided by the Council include promotion/enforcement of fair housing practices and reconciling tenant and landlord disputes. The Fair Housing Council currently serves approximately 2,000 Huntington Beach residents annually. Huntington Beach Stratez Implemcntarion CHAS Annual Plan III-13 December 2S� 1992 23 Program 3B: Coordination with Social Service Agencies Huntington Beach allocates 15 percent of all CDBG funds for social services each fiscal year. A total of $122,850 in CDBG monies will be provided to social service agencies that provide services to Huntington Beach residents during the coming year. Approximately $92,500 will be used to provide housing related services by the following agencies: Social Service Agency Amount-of CDBG Awarded CASA Youth Shelter S3,500 Community Services Program S7,500 Episcopal Service Alliance S9,000 Interval House S20,000 Orange Coast Interfaith S5,000 Project Self-Sufficiency S25,000 Salvation Army S7,500 Shelter for the Homeless S15,000 Note: Refer to the CHAS Appendix for services provided by these agencies. In attempts to curtail additional persons and families from becoming homeless, the City's Community Services Department runs "Project Self-Sufficiency" (PSS). The program, which first began in 1984 as a nationwide HUD demonstration project, is funded primarily through CDBG funds and private sector donations. The program aims to make persons independent of goverment 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. The HOME program Section 213 indicates that technical assistance may be made available to businesses, unions, and organizations involved in construction and rehabilitation of housing in low- and moderate-income areas to assist women residing in the areas to obtain jobs involving such activities. This might include facilitating access by women to, and providing, apprenticeship and other training programs regarding non-traditional skills, recruiting women to participate in such programs, providing support for women at job sites, counseling and educating businesses regarding suitable work emzronments for women, Huntington Beach Stroregy Implementation CHAS Annual Plan 111-14 December 2S, 1992 and providing information to such women regarding opportunities for establishing small housing construction and rehabilitation businesses. Huntington Beach is investigating the feasibility of using HOME funds for such purposes as part of the implementation of Project Self- Sufficiency. The City also uses its general fund to operate the Senior Shared Housing program offered at the Roger's Senior Center. Roommate matches are made between seniors based on telephone requests. The City is in the process of developing a new program with,the objective of matching the participants of Project Self-Sufficiency with those of the Senior Shared Housing program. The new program will begin operation by the end of 1992. A new shelter to assist the City's numerous adolescent homeless is targeted for opening in June, 1993. 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. The City previously funded construction of an access road to the shelter, and anticipates future funding once the shelter is in operation. In addition, the City is investigating the feasibility of establishing a shelter for patients with AIDS. Program 3C.- Emergency Foreclosure. Program The Citv has considered the establishment of an "emergency foreclosure program" using federal and/or local resources. The program would either provide emergency loan relief and/or financial counseling to eligible homeowners who, for reasons beyond their control, are temporarily unable to meet their mortgage or property tax obligations. However, due to the lack of potential funding source, the City will not pursue this program during the corning year. Program 3D: Emergency Rent Relief The City has also considered the use of federal and/or local resources for short term financial assistance to renter households faced with temporary financial emergencies (e.g., medical expenses, sudden unemploy,�ent). The term of assistance per family would be relatively brief. Huntington Beach S:rctegy Implementation CHAS Annual Plan 111-15 December 28, 1992 Highest priority for rent relief would be those low and middle income families and individuals who would be considered "at risk" of losing their permanent housing. The City will not pursue this program during the coming year due to the lack of appropriate funding sources for the program. Matching and Leveraging Requirements CDBG and general funds have no matching requirements. The social service agencies supported by the City utilize CDBG-funds to leverage a variety of private and non-Federal funds. Support of Applications for Funding by Other Entities .The City will continue to support funding applications for local non- profit service providers. However, social service providers lacking a track record, or projects or programs which raise neighborhood compatibility issues would need to be carefully reviewed. Huntington Beach Strategy Implementation CIHAS Annual Plan III-16 December 2$ 1992 Z� Priority #4 Provide Opportunities for Homeownership, for Low/Middle income Residents, Particularly for First-Time Homebuyers Through Private Projects and Funding Sources The City's annual goal is to assist 22 low income and 22 middle income first-time homebuyers through the conversion of the Brisas Del Mar project with Redevelopment Agency assistance. Among these 22 low income households, 11 are estimated to be-small-households and another 11 large households. These units will be assisted with Redevelopment Set-Aside funds and thus, are not included in Table 3B. Housing Activities/Programs and Resources Program 4A: Financial Assistance for First-Time Horebuyers The City ,,;,ill encourage local private lenders to make home mortgage financing available to low and middle income Huntington Beach residents through operation of a First Time-Homebuyers Program. The staff will contact Community Reinvestment Act officers of local lending institutions during the coming year to initiate a bank-sponsored first-time homebuyer program. The strengthening of the federal Community Reinvestment Act has increased the interest of local banks to assist in homeownership programs. Also, Fannie Mae and other secondary market first mortgage purchasers now offer attractive programs to private lending institutions that agree to make such loans. Lower dovTipayments and flexible underwriting criteria may be used in this program. Program 4B: Shared Equity Program The City has developed a Shared Equity Program in which Redevelopment Housing Set-Aside monies will be used to provide downpayment assistance for qualifying middle income first-time homebuyers. A Deed of Trust and affordable housing covenant will be secured against the property to ensure the unit 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 not less than the maximum feasible time. Huntington Beach S.,rcieg ImpIcrnentation CIL4S Annual Plan I1I-17 December 28, 1992 S1 The Agency will assist in securing Second Trust Deed for the following projects: o Brisas Del MarlDelaware & Utica. S300.000 - Conversion of existing 44 unit middle income rental to low-mod 1st time buyers. The Redevelopment Agency -Mll assist in Second Trust Deed. It can be generally estimated that 22 of these units will be purchased by low income households. • Third Block West (300 Main. Main Pier Project Area). S825.000 - Agency participation in the development of 68-u.mt condo with 33 units reserved for middle income first time buyers under the Second Trust Deed program (refer to Program 1A). . C Seaview I (10824 JolLy Lane, Talbert Beach Proiect Area). 9750,000 - Agency participation in the development of an 88-unit project with- 25 units reserved for middle income first time buyer program and Trust Deed (refer to Program 1A). It is also the City's goal to formalize written guidelines for the First- Time Homebuyers program, confirm lender participation, and develop public information campaign. Program 4C: Mortgage Credit Certi j5cwe Program Huntington Beach plans to explore the feasibility of a Mortgage Credit Certificate Program if the program is being renewed. Linder this program, first-time homebuyers would receive tax credits equal to between 20-50 percent of the annual interest pa}Trent on their annual home mortgage interest pa;Tnerts. Program 4D: City-Wide Inclusionaty Housing Qrdinarrce To assist low and middle income first-time buyers, the City has established a City-wide policy to require the inclusion of an affordable homeownership component in all private ownership housing projects with no exemption for small size projects. However, small size projects may pay an in-lieu fee for affordable units. Affordable units amounting to ten percent of project development is required for property that has existing zoning in place and is not requesting a change in land use status. For those developers who are seeking to enter into a development agreement with the City or need a general plan amendment or zone change, 20 percent of the units are required to be set-aside as affordable housing. Developers are Huntington Bcach Strategy Implcmcntarion CHAS Annual Plan III-is December 25� 2992 required to advertise the affordable units available to the general public. The City's goal for the coming fiscal year is to adopt an inclusionary housing ordinance to implement this policy. The following table represents a list of projects that contain an inclusionary housing component as part of the project development. No public funding is involved in the development of these affordable units. Total Project Affordable Project Units Units Bushard School (9800 Yorktown) 58 12 (20%) Garfield Tracts 109 21 (20%) Lake Street Project (500 Lake St.) 10 2 (20%) NESI - Magnolia/Pacific 502 51 (10%) Summerhill (8196 Constantine) 48 10 (201170) Surfcrest North (Seapointe) 252 50 (20On) Surfcrest South (Seapointe) 115_ 23 (20(.Ib Wintersburg School (Warner) 298 44 (15%) Holl Sea Cliff 3,895 584 (1507o 5,287 797 This number represents the maximum number of affordable units the site may yield. The actual number of units developed may be less. Matching and Leveraging Requirements Private funds may be combined with redevelopment set-aside funds for home ownership projects within the redevelopment project areas. Support of Applications for Funding by Other Entities The City will support any funding applications for homeownership assistance to the extent neighborhood compatibility is not compromised. Huntington Beach Strategy+ Implemenration CHAS Annual Plan I11-19 December 2$ 1992 6 Priority #5 Provision and Preservation of Affordable Housing for Residents with Special Needs, Especially for Large Families and Elderly The City's annual goal is to support three social service agencies that provide supportive services to the City's elderly residents. An estimated 284 very low income (300Io median County income), 283 very low income (5007b median County income), 282 low income, and 282 middle income Huntington Beach senior residents may be served by these agencies annually. Also, the City plans to assist five disabled persons through the City's Handicapped Grant Program. It can be generally estimated that half of the persons to be assisted are owners and half are renters. Only the households to be assisted through the Handicapped Grant Program are included in Table 3B. Housing Acthrities/Programs and Resources Program 5A: Single-Family Rehabilitation Program The Single-Family Rehabilitation Program is part of the City's Owner- Occupied Rehabilitation Program described earlier. To the maximum ea-tent possible, elderly homeowners and large families will be provided financial assistance to maintain their properties. Mobile homes occupied by lower income elderly vill also be assisted in this Program. Large family benefit will also be a focus of the Single Family Rehabilitation Program i--t order to provide additions to homes to alleviate unit overcrowding and deterioration.. Program 5B: Supportive Services for Elderly Whether the elderly are homeowners or renters, supportive services often are necessary to meet their needs. The City will coordinate rehabilitation assistance with the appropriate social support services as offered by County, City and nonprofit agencies. There are numerous resources available to the elderly population of Huntington Beach. There are County advocacy organizations, Disabled and Emergency Service organizations, Financial Assistance agencies,. Food and Nutrition Services, Health and Medical Services, Hospice Care, Housing Information and Referral, In-Home Services, Nursing Hunrington Beach S:ra:ev Implementation CHAS Annual Plan I1I-20 December 28, 1992 '10 and .Convalescent Homes, Adult Protective Services, Retirement/Board and Care Homes, numerous Senior Centers, Transportation Services for the Elderly and Volunteer Programs to assist the elderly in leading full and productive lives. The City has allocated $34,750 of CDBG funds for Fiscal Year 1993 to assist the following non-profit agencies to provide services for senior residents in Huntington Beach: G Feedback Foundation. Inc. at the Roger's Senior Center $12.250 - provides TLC nutrition for senors. - —" 0 Hantingion Valla Adult DQy Care S5.000 - provides orthopedic program for person, and seniors suffering from forgetfulness, confusion, disorientation and severe memory loss, stroke, and family support service. C Orange County Consolidated Transportation Service Agency (OCCTSA) S17.500 - Provides transportation to frail seniors and handicapped persons. In addition, through the City's rehabilitation programs, funds have been allocated to assist in the rehabilitation of elderly-occupied mobile homes and single-family homes. Program 5C. 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 utilizes CDBG and HOME funding to offer S2,000 handicapped modification grants to multi-unit property owners to encourage modif c2aion to existing units to meet these special needs of the handicapped. Investor-owners must agree to make any modified units available to disabled persons on a "first priority" basis. Also, as part of the ongoing single-family housing rehabilitation program, handicapped o",ners Aill be targeted to receive CDBG and HOME funds to make housing accessible to handicapped persons. This effort should increase locational choice for the physically disabled. Five low income physically disabled residents, both owners and renters, will be assisted under this program for Fiscal Year 1993. Huntington Beach Strctev Implementation CHAS Annual Plan 111-21 December 28, 1992 ,31 Program 5D: Preserving Affordable Multi-Family 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 four federally assisted (Section 221, 231 & 236) multifamily housing projects with the potential for conversion to market rate with expiration or prepayment of the original loan. One 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. No assisted housing units will be at risk of converting to market rate housing during the coming fiscal year. The City will continue to monitor the prepayment and conversion status of the City's assisted housing stock. Matching and Leveraging Requirements All matching requirement on the HOME funds for Fiscal Year 1993 have been waived by Congress and the President. Social service agencies supported by the City utilize CDBG funds to leverage a variety of private and non-Federal funds. Support for Applications for Funding by Other Entities. The City will continue to support funding applications for local non- profit service providers. However, social servce providers lacking a track record, or projects or prograrns which raise neighborhood compatibility issues would need to be carefully reviewed. Huntington Beach Strotegy Implementation CHAS Annual Plan I1I-22 December 26� 1992 "!v Priority #6 Ensure that Persons Displaced by Redevelopment Activities Receive Financial Assistance and Replacement Units on a One-for-One Basis, and that New Units are Produced in Redevelopment Project Areas as Required by the California Health and Safety Code The City's annual goal is to assist relocation of ten households currently residing in the Driftwood Mobile Home Park. It is assumed the majority of these mobilehomes are occupied by elderly households earning lower income. Thus, the targeted income breakdown is: 4 very. low income (0-30117o of County median), 4 very low income (31-50010 of County median), and 2 low income. Housing Activities/Programs and Resources Program 6A: Mobile Home Ordinance This ordinance provides minimum standards for an acceptable mobile home relocation assistance plan if a mobile home park is converted to other uses. Many senior citizens and low income households presently reside in the City's mobile home parks. According to the City, the goal of the mobile home relocation assistance plan is to provide alternative housing opportunities for mobile home residents who may be displaced as a result of conversion of mobile home parks to other land uses. Any displacement of mobile home units (or any low or middle income housing) resulting from City- sponsored redevelopment activities will be replaced in equal number wzthing four years and will be available at affordable rates. It is the City's responsibility to meet and consult the mobile home park owners and tenants who are potential displacees from mobile home parks which the City intends to convert to other uses, assess the impacts of displacement, and prepare a strategy to address the needs of the displacees. Provision of financial assistance for relocation of persons that are moved permanently and involuntarily from real property due to physical rehabilitation activities is required by the federal law. Tenants will not be considered displaced if they were offered assistance and refused assistance. Huntington Beach Strategy implementation CHAS Annual Plan 111-23 December 2$ 1992 3� Program 6B: Assistance to Displacees Depending on availability, displacees will receive either Section 8 rental subsidy assistance, or relocation assistance pursuant to the provisions for permanent displacement of the U.S. Uniform Relocation Assistance and Property Acquisition Act of 19-10. An eligible lower-income tenant who is displaced may elect one of the following options: a. Obtain Federal Section 8 rental assistance.- This rental assistance will be provided each month in an amount which is.the difference between the rent for the new housing unit and thirty percent of the income of the household. b. Obtain a monthly replacement housing payment sufficient to enable the persons to rent a comparable dwelling unit. Monthly payments maybe made for up to a 42 month period. c. Obtain a one-time. lump sum replacement housing payment for purchase of a dwelling unit. If this option is chosen, funds will only be released upon verification that a specific property has been identified and mortgage financing has been obtained. A non-lower income tenant may be eligible for a monthly replacement housing payment sufficient to enable the person(s) to rent or buy a comparable dwelling unit. In addition to the above options, the displaced tenant family may choose to receive either a payment for actual moving and related expenses or a fixed moving expense and dislocation allowance. The City will provide at least 90 days advance wTiuen notice to move. Information and counseling will also be provided to each tenant and will include information to familiarize displacees with opportunities to select appropriate replacement housing within the full range of available housing and individual rights under the federal Fair Housing Law. No displacees will be discriminated against in the provision of information, counseling, referrals, or other.relocation services. The Redevelopment Agency has been active in assisting the development of replacement housing and prodding relocation assistance. Agency assisted replacement housing/relocation projects include the following: Huntington Beach Scro:egy Implementation CHAS Annual Plan 111-24 December 28, 1992 �a • 1. 0 Five Points Senior Vill c (18651 Florida), R750,000 - 164 unit senior rental project of which Agency is participating through loan and grants for 48 units counted towards Main-Pier replacement housing needs (30 years). Among the 48 affordable units, 16 units will be set aside for very low income households, 16 units for low income, and 16 units for middle income. All units are for small elderly households (refer to Program 1A). 0 Ddflwood (21462 Pacific Coast HighwiU Main Pier PrQ ect Area) - This is a redevelopment project which involves the displacement of existing occupants. The Agency will purchase the existing mobile homes and pay for relocation assistance to existing occupants. The City's goal is to achieve relocation of 10 units annually. Matching and Leveraging Requirements No matching funds are required for replacement housing. Support for Applications for Funding by Other Entities. Not applicable. Huntington Beach Strategy Implementation CHAS Annual Plan 111-25 December 28� 1992 35 CHAS Table 3A U.S.Deportment of lloueing and Urban Development Ofrico of Community Planning and Dovelopmonl Investment Plan Comprehensive Housing Affordability Strategy(CHAS) Instructions for Local Jurisdictions Name of Jurisdiction: CI.'I'Y OF IIUNT[NCrl'ON BEACH 1992/93 Amount nocalved Plan to Planned Use of nosourcas Expected to be necoNed during the FY Amount nocalved Support by Via Jurisdiction Apply/ by Other Entitles Application Lnsl Fiscal Your Subroli Now Rental Home Buyer Planning Support Operating Last Fiscal Year by Other Funding Source ($0003) Acquisition MIUU Construction Assistance Assistance Services costs ($000s) Entities j (A) (13) (C) (D) (E) (F) (G) (H) (1) M (K) (L) A. Form Programs nUllornenlPEA WAA WEI. 1. 11011E O 257 27Z /18% . . ... ...... .---... .. ....------ ------- ----- ------------ .-....--------.. .------------ ----- -------- //ii. /�,////i//////,,//z:'ir.:'sill;.%//.i./.•.://�> r•/;/ Gum.;pi , 18 0 (r'1)/ I ,U I U 9'17� 7"/„ _ _ J. ESG 'Fin/a/l. 4. UOUOthmr EnmrtJY G. Public 115 /% ,i / q //'�/� ---- Cmngxuhnnsivn Grant _ � // // / // ///I Ir111111I:1 I�r'.XJr:1111: I •I)11) . -____...._...._..__._.-._-_-._-._ ��•...•-_..._._..�I!«r••«l r/!r /i!r r Wa! «!!r r««/r...r. .«r•r.d..r d/!�/ Ir«r.r ur.I. Nl�. r.'i?1.:. rw rusi.:'u.i.iar! /ul.'/ir�:.u«.r;/..-L.L.-:....«isw.....-........- .. ., .. ,,:• /1L. 11..1a„L,r:1, ;.,{.11. 1„ / J.,.• � 1�1 l ., , 1;�. ,1. ,/,,.,f,o-., .�/ / . III•!.11 //%: %/. r �. j// / X / / XK � 10. 1 IOP E 3 X 11. ESG -- X 12. irartsi0unal Housing ---------- --- — —---- �� / - --X IJ.-Ilarullwp(xxllousing for - _ ---- -- ,X11 . ., 14. :,bettor F lus Caro // ME�// � �/ / �.� /j�,.��'/' �ii///•/�/ ,//. /��� ; ;!z -- r. i7'•a/,,-- - --. — ///: //,/� � �/ ,�////, /v/riliri:'f` .•--- -. _ lf, in•: :r)ZCldr!riY n /;'vi` � //i%/%:.,j, % .�i✓r/�.:r'.�u4.GL:iu��7�.�.//i __ u/.r� .rL ::i.//i..�:.; _r_•/,/.•/; s �-•�;:._._. Lligibin only under certain cimunislancos. Page 1 of 2 loan IlUD-40090 (9192) Amwnt acetvod Plan to Planned Use Resources Expected to be necetved during the FY Amount I, _ .ved Support n by Oilier Endfies ApIA-caeon by Ow Jurlsdiglon Apply/ Lost Flscal Your Subnit Now Rental Nome Buyer Planning Support Operating Last Fiscal Year by Other Funding Source (S0003) Acquisition RENAD Construction Assistance Assistance Services Costs (SOOOS) Endues (A) (B) (C) (D) (E) (F) (G) (H) (1) (J) (K) (L) U. Competitive Propr<vns � / /% , Continund i• ,, 17. Soc.0 11 1 landicappod FEEr' 10 1.4xlur:,lu flohab of10 �/ // - /,j/ / ,//�.: I. I innl.d VuUGII_t., ////r // ///r///,/% /.•. �// ,, /// //./�//��/,/ /. /% , It n,t;d(.',oltilicat r.. /I/Mr/I /% �/////�/ r. �// / ,•,/ .:..,r ...--- - _..- - - MEMO//i /// i ; S�j/� jr r i /// // ,/' /� r/// //// r / /� 7 I'ul he I luur.ln CAAf �,�/i /.� / / �emR ,/ 6/% /.- �. � r:v '%.' / �:'-'� ,;�7', / / / / / / / II 1/0 EM 1. (itln!r 20. Other 29. Other 30. Subtotal 5, 105 Compoillfvo Programs C. 31.Total-Federal / / r )0,-1 � R 1•f I 1••.'1• t 1 r r n i 1•n I .,1�t -/\.: I f I .� I. , 1 42 i r'/ ___ -------- —'------- ------ ------ �r' ,� %35. Total-All Sources .. 2 , 052 5105 r. Pago 2 of 2 form HUD-40090 (9/92) CI-IA� r able 3D U. ipartmont of ilouainli and Urban Developmonl 011ico of Community I'lanning and Dovolopmont Goals for Households & Persons Comprehensive Housing Affordability Strategy(CHAS) to be Assisted with Housing Instructions for Local Jurisdictions Haiao of JUfl3dlFdon: FY: City of Huntington Beach 992/93 Ronlors Owners Homeless Non- Asslstanco Provided Elderly Small Largo Isl-Tlmo 1-fomobuyors Homeless Tot: by Inoomo Group 1 d 2 Member Related Related All Other Total Existing w1U1 Total Individuals Famillos Special Total Section Households (2 to 4) (5 or more)I-lousonolds Rontors I-lomoownors Children All Olhors Homeowners, Needs Goals Goal (A) (a) (C) (D) _(E) (F) (G) (H) (1) W (K) (L) (M) (N) ' 1. very Low-Income 10 7 2 0 0 112 419 31 — I t s (0 to 30%of MFI)' — 1-Ills fills prs 309prs. I1Hs 2. (J o owIoforne 106 204 111 I1II�— 16 I1[5 308 30/iTIs 437. _ p p IIlis J.. Other Low-Income 30 31 GT_ 3 ___j - 6 4 II II s (51 to 001/.of MFI)' I[1Is IIIIs _ __ 4. Total Low-Income 213 4 3 4 l ri 4 Or 5 0 �—� / 9 S 1 II II s f3 t17 (linos t +2+3) tills III-Is prs 617prs (ills Or,based on I IUD ad)uslod Income Ilmlls,If opplicabio. ** n portion of the households to be assited under this category will fall within the Section 215 affordability guidelines . however, no information is available to identify the exact number of households . 1: II II form IIUD-40090(9/9 CHAS TABLE 313 (ATTACHMENT) Notc: Totals in Tablc 313 do not include the following; projects that will benefit lower income houscholds with no involvement of federal f uads. Projects assisted with Redevelopment Sct-Aside Funds: 1. Fivc Points Senior Villa - 8 Very Low Incomc (0-30% of MFI) cldcrly households 8 Vcry Low laconic (31-50% of MFI) cldcrly households 16 Low laconic cldcrly houscholds 2. 725 Utica - 9 Vcry Low laconic (0-30% of MFQ small renter-liouscliolds 9 Vcry Low Incomc (0-30% of MI Q large renter-houscholds 9 Vcry Low laconic (31-50% of MFI) small renter-houscholds 9 Vcry Low Income (31-50% of M1-1) large renter-housclolds 3. Driftwood - 4 Vcry Low Incomc (0-30 of MFI) cldcrly houscholds 4 Vcry Low Incomc (31-50% of MPI) cldcrly houscholds 2 Low Incomc cldcrly houscholds Inclusionnry Units: Affordable Units 1. 13ushard School (9800 Yorktown) 12 2. Garfield Tracts 21 3. Lake Strcct Projcct (500 Lake: St.) 2 4. N1?SI - Magnolia/Pacific 51 5. Summcrhill (8186 Constantine) 10 G. Surfcrest North (Scapointc) 50 7. Surfcrest South (Scapoinlc) 23 8. Wintcrsburg School (Warner) 44 9. Holly-Scacliff 584 Total 797 B. GEOGRAPHIC DISTRIBUTION OF RESOURCES Huntington Beach has targeted several neighborhoods characterized by high levels of housing deterioration for rehabilitation assistance. These Neighborhood Enhancement Target areas include the following ten census tracts: 995.08, 994.10, 994.11, 994.02, 994.13, 993.05, 993.02, 993.03, 992.20, and 992.14. Code enforcement efforts, Operation LOGOS, and residential rehabilitation loans are being focused in these areas, as identified on the following map. The City also has five Redevelopment Project Areas, where much of the affordable new residential. construction will be focused. Other programs and services are provided by the City and other agencies on a city-wide basis. C. SERVICE DELIVERY SYSTEM Implementation of the housing programs and activities identified in the CHAS are carried out by the City's Economic Development and Community Development departments, and by for-profit and non-profit organizations_. The Economic Development Department is responsible for the overall administration and oversight of the CDBG program, and development and implementation of Redevelopment Housing,policies and projects. The Community Development Department is responsible for the Housing Rehabilitation program, CDBG funded neighborhood revitalization programs (LOGOS), the HOME program, and oversees the residential permitting process and regulates compliance with zoning and building codes. Non-profit organizations will play a role both in the development of affordable housing in Huntington Beach during the coming year, and in the provision of housing-related services. The City will work with a CHDO (Community Housing Development Organization) to develop low income housing using HOME funds, and has issued a RFQ to solicit interest. The City will also work with Habitat for Humanity and Orange County Community Housing in the development of affordable housing. There are many private for-profit builders, developers and contractors in the Huntington Beach area. The vast majority of housing that is developed, built and rehabilitated in Huntington Beach is done so by private firms. Private lending institutions provide funds for housing development and rehabilitation. Community Reinvestment Act requirements will continue to help expand the availability of financing for lower income housing development. Huntington Beach Strategy Implementation CH.4S.Annual Plan III-30 December 28, 1992 a° Figure 1: Neighborhood Enhancement Target Areas and Redevelopment Project Areas Huntington Beach Strategy Implementation CHAS Annual Plan 111_j 1 December 28, 1992 �1 � | 7 § OwAt `nd I . . \ � ! Gvmg k . § § IN, | \ | ! / � / _ _ 'y . --• . . . __ / __ . . / __ 7 . § Cz » " �e d • Q ova P v 40 lu PALM AVE. k^�f O LQ-v ACACIA AVE. OIR�. z yap Q� PECAN AVE. k ORANGE AVE. ONE AVE. #;# � N F•' �.•. F N •M1:;4. N N N y �Z N Q N K N < OV �u W N � d ~ J� 4 •`v WALNUT AVE. h ;s. <' :Y "' x. Fr z # i• < DD 01' DD DD ..a... o.. 00 D PACIFIC COAST HIGHWAY W a PACIFIC OCEAN R = a t: ti z f ti { ¢ � s,�r .� mmmmm�m mmm�mm 1 0 `� ip �ommm�ommmmmm�amm � � O `� O mr�aoa�mmmr�mmm�amm � r � O L�J L1J a�UJ UIJ I�L�J LU UJ LaJ aJ a]a] bIJIJ�L �� - - i11 R t .OH44.111 ItF�;f1: lKIIK COtiN IV(]1wT UP I1Mro'GtON b01 MRaOtA1 tlM _____ _ 1 Anorrto strtu18e e• vu AOO /ib Nv WRIA!20,!0/1 FACVX OCUt' IKVKCKUN I « . . . MAN 2. m m&gmmmi ' . . . ~ . 0 ' 0 . n \ I \ ' PARK 2. m . f , , A 4 % � & � � ƒ � - � • $ t M . . � . � . PINE 2. / � . . . � . � . \( #LAKE 2. • � � ___ . § G Z O aAB AMA51 < z 2 z � / .. / . rn .� . � REDONDO CIRCLE D j/ j I I rn I j KOVACS DR. pu I T II I BARON CIRCLE JOLLY IN �3 I TI I$� o Z JOYFUL LN. BELL CIRCLE BEACH BLVD. i NICHOLS STREET DO m i DAIRYVIEW DR. '� p EMERALD LANE D N v I JACQUE-LYN LANE H r5 OAK IANE I, I KOLEDO LANE v F � N N D` O ASH STREETtv r�l QUEENS LANE R II KEELSON LANE ELM STREET BEACH BLVD. GOTHARD ST. y?ry��:.• {I� C •~Y ri ^: :<:.... IIIMII HIIHIH111 I :;.i::ll•�•��.�••`.�.1�...... �11•U(j•�'.:::i;;;:h�l.���•(i1.q.61{'�:k. ll 111 .:. ii111N 111((I�r,III„1...((IHfxilllllll( H.:Irl.11{.•NN.�II.a z 0 n r YI :..:.:.....::i:a?:::•:i:;�:is fi nt m 1 A urra 1.41f SV o o' j11 r�l f- < ° • '•;;;::.......::i is i° i:i:'%?; E«"::�o-; f::iia:;%;:S �i;:;r:i;:::i::;p•'::i:3i�`>iiii ^ � ..•fhARKSID��fN` 1 ?i::;:2;:;:::>:::::::::?<<::�»::>:;;:. • I Z -1 0 Z N f •�:�f jt:�::1!: tip''' BEACH BLVD. IV.- OTHER ACTIONS A. PUBLIC POLICIES On September 16, 1991, the City Council appointed a task force to make recommendations to the Council on affordable housing. The task force was given the charge of exploring the various aspects of affordable housing and recommending an affordable housing strategy to implement the City's adopted Housing Element. The goal is to develop a long range affordable bousing plan which addresses the projected needs of the community and achieves the expectations of regional, State, and Federal regulations. The task force recommended the following strategies: 0 Adopt "Affordable Housing development standards specifically related to density, parking, site coverage, open space, and building height to reduce the cost of housing development. 0 Investigate the feasibility of fast tracking development permits, waiver of selected public fees, obligation for public infrastructure improvements, etc.. The City has also adopted an inclusionary housing policy which requires all new residential projects, regardless of project size, to include an affordable housing component. However, developers of small size projects may choose to pay a fee in lieu of affordable units. Affordable units amounting to ten percent of project development is required for property that has existing zoning in place and is not requesting a chance in land use status. For those developers who are seeking to enter into a development agreement with the City or need a general plan amendment or zone change, 20 percent of the units are required to be set-aside as affordable housing. Developers are also required to advertise the affordable units available to the general public. These public policies will serve to facilitate the creation of affordable housing in the community. Huntington Beach Other Actions CHAS Annual Plan 1V-1 December 2� 1992 a� B. INSTITUTIONAL STRUCTURE Huntington Beach has initiated a series of efforts to restructure its housing service delivery system in order to more efficiently provide housing services to its residents. The City restructured the organizational capacity of its Economic Development and Community Development departments during the last fiscal year. The Community Development Department is now responsible for housing rehabilitation programs, the HOME program, and the housing element. The Economic Development Department has maintained responsibility f6r implementation of redevelopment housing programs, and for administration and oversight of the CDBG program. The City.of Huntington Beach is currently undergoing a voluntary operational evaluation of the Huntington Beach development services. The study will address the following issues: 0 Departmental mission, goals, and objectives; 0 Organizational structure, including the appropriateness of functional divisions of labor, reporting relationships, and spans of control; 0 Staff levels by major functional unit, e.g., Administration, Planning, and Building and Zoning Code Enforcement; 0 Managerial effectiveness of the Department; 0 Cost effectiveness of departmental operations;, and 0 Service delivery effectiveness in addressing client needs. The results of this study will enable to City to improve the Community Development Department's efficiency in delivering services, including the delivery of housing services. Huntington Beach Other Actions CHAS Annual Plan 1V_2 December 2$ 1992 �7 C. PUBLIC HOUSING IMPROVEMENTS Huntington Beach has no public housing projects. The City, however, has a total of 735 income-restricted units assisted through the City Multi-Family Mortgage Revenue Bond program and various HUD programs. As part of the City's Housing Element amendment, an inventory and description of these assisted units was prepared. A recent housing condition survey conducted by the City concluded these assisted units are in excellent condition and require no improvements or rehabilitation. D. PUBLIC HOUSING RESIDENT INITIATIVES There are no public housing projects located within Huntington Beach. E. CERTIFICATIONS The required CHAS fair housing and anti-displacement/relocation certifications are located on the following page. Huntingron Beach Other Actions CHAS Annual Plan IV-3 December 28, 1992 /1 7 CERTIFICATIONS FAIR HOUSING The jurisdiction hereby certifies that it will affirmatively further fair housing. Signature of Authorized Official X RELOCATION AND ANTIDISPLACEMENT The jurisdiction hereby certifies that it is in compliance with a residential antidisplacement and relocation assistance plan under section 104(d) of the Housing and Communi'ly Development Act of 1974. Signature of Authorized Official X :7 V. SUMMARY OF CITIZEN COMMENTS A public hearing on the Huntington Beach CHAS Annual Plan was held on November 19, 1992 at 7:00 pm at the Boys and Girls Club. The public hearing was attended by City staff and five members from the Huntington Beach Citizens Advisory Board (CAB). The CAB reviewed the Draft CHAS Annual Plan and provided input for incorporation into this submittal. Specifically, the CAB requested a policy statement to be included in the CHAS with regard to equal access to affordable housing units. Residential development projects that include an inclusionary housing component and/or assisted with public funds will be required to advertise the availability of affordable units to the general public. The CAB also suggested that allocation of the affordable units be selected from qualified applicants using a lottery system. No. additional comments were received, during the 30-day public review period. Huntington Beach Summary of Citizen Comments CHAS Annual Plan V_1 December 2$ 1992 VL APPENDIX A. GLOSSARY Affordability Gap: The extent to which gross housing costs, including utility costs, exceed 30 percent of gross income. Affordable Housing: Affordable housing is generally defined as housing where the occupant is paying no-more than 30 percent of gross income for gross housing costs, including utility costs. Affordable housing has a more specific definition for purposes of completing Table 5B. That definition is included in the instructions for Table 5B. Committed: Generally means there has been a legally binding commitment of funds to a specific project to undertake specific activities. Expand definitions for completing Table 4/5A are included in the instructions for Table 4/5A Cost Burden > 30% The extent to which gross housing costs, including utility costs, exceed 30 percent of gross income, based on data published by the U.S. Census Bureau. Cost Burden > 50110: The extent to which gross.housing costs, including utility costs, exceed 50 percent of gross income, based on data published by the U.S. Census Bureau. Elderly Household: One or two person households containing a person at least 62 years of age, and non-elderly handicapped individuals, including those currently institutionalized but who are capable of "group home" living. Existing Homeowner. An owner-occupant of residential property who holds legal title to the property and who uses the property at his/her principal residence. Family: The head of a household and all other persons living in the same household who are related to the head of the household by blood, marriage or adoption. First Time Homebuyers: An individual or family who has not owned a home during the three-year period preceding the HUD-assisted purchase of a home that must be used as the principal residence of the homebuyer. Huntington Beach Appendix CHAS Annual Plan V1_1 December 28, 1992 Group Quarters: A facility housing groups of persons not living in households (U.S. Census definition). Examples of group quarters include institutions, dormitories, shelters, military quarters, and other quarters, including SRO housing, where 10 or more unrelated individuals are housed. Home Program: The HOME Investment Partnerships Act, which is Title 11 of the National Affordable Housing Act. A new federal affordable housing program Household: Persons living in a housing unit. Table 1D Instructions provide aspecial definition of "household" as it is used in Table 1D. Housing Unit: Houses, apartments, and separate living quarters, including SRO housing, where less than 10 unrelated individuals are housed (U.S. Census definition). Housing units are distinguished from group quarters. Instititutions/Institutional: Group quarters for persons under care or custody. (U.S. Census definition) Large Family: A family household with 5 or more members. Low/Lower Income: Families of households whose incomes are from 0 to 80 percent of the median income for the area, as determined by the Secretary of HUD, with adjustments for smaller and larger families, and for:certain areas. Middle Income Households: Families or households whose incomes are from 96 to 120 percent of the median income for the area, as determined by the Secretary of HUD, with adjustments for smaller or larger families, and for certain areas. Moderate Income Households: Families or households'Whose incomes are from 81 to 95 percent of the median income for the area, as determined by the Secretary of HUD, with adjustments for smaller or larger families, and for certain areas. Non-institutional: Group quarters for persons not under care of custody. (U.S. Census definition used in Table 2A). Overcrowded: A housing unit containing more than one person per room. (U.S. Census definition used in Table 1A). Public Housing CIAP: Public Housing Comprehensive Improvement Assistance Program. Huntington Beach Appendix CHAS Annual Plan V1.2 December 28, 1992 S� • I Rent Burden > 30% (Cost Burden): The extent to which gross housing costs, including utility costs, exceed 30 percent of gross income, based on data published by the U.S. Census Bureau. Rent Burden > 50% (Cost Burden): The extent to which gross housing costs, including utility costs, exceed 50 percent of gross income, based on data published by the U.S. Census Bureau. Section 215: Section 215 of Title II of the National Affordable Housing Act. Section 215 defines what constitutes "affordable" housing projects under the Title II HOME program - — Service Needs: The particular services identified for special needs populations, which typically may include transportation, personal care, housekeeping, counseling, meals, case management, personal emergency response, and other services to prevent premature institutionalization and assist individuals to continue living independently. Sheltered: Families and persons whose primary nighttime residence is a supervised publicly or privately operated shelter (e.g., emergency, transitional, battered women, and homeless youth shelters; and commercial hotels or motels used to house the homeless). Sheltered homeless does not include any individual imprisoned or otherwise detained pursuant to an Act of Congress or State law. Substandard: To be defined by the jurisdiction. The jurisdiction's definition must include any housing unit which fails to meet the Section 8 Existing Housing Quality Standards (HQS). Jurisdictions that have already developed such a definition for the HAP may elect to continue to use that definition, or may provide a new definition. Suitable for Rehabilitation: To be defined by the jurisdiction. The definition must provide for the exclusion of both units which can be brought into standard condition through minor repair (e.g., minor HQS "livability' violations), as well as units in such substandard condition as to make rehabilitation infeasible, including financially infeasible. Supportive Housing: Housing with a supporting environment, such as group homes or Single Room Occupancy (SRO) housing and other housing that includes a planned service component. Supportive Senices: Services. provided to residents of supportive housing for the purpose of facilitating the independence of residents. Some examples are case management, medical or psychological counseling and supervision, child care, transportation, and job training. Huntington Beach Appendix CHAS Annual Plan y'j_3 December 23, 1992 7� t +' Unsheltered: Families and individuals whose primary nighttime residence is a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings (e.g., the street, sidewalks, cars, vacant and abandoned buildings). B. AMENDMENT TO THE CHAS FIVE-Y`ER PLAN This section amends Huntington Beach's approved Comprehensive Housing Affordability Strategy (CHAS) for 1991-1996. Clarification has been added in response to HUD's advisory comments on the City's Five-Year-CIW. HUD Programs as Potential Funding Resources The City will utilize CDBG, HOME, and redevelopment set-aside funds to assist all previously described housing programs and activities. With $3.7 million in Set-Aside funds available for expenditure in the coming year, the City is able to implement a variety of housing assistance programs, including several programs aimed at assisting the homeless. The City does not therefore anticipate the need to pursue other HUD programs as potential funding resources during the coming year. Inventory of Homeless Facilities, Their Capacities, and Senices Provided Based on estimates by the Orange County Homeless 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. As most homeless individuals migrate to available services, social service agencies located outside the City also serve the Huntington Beach homeless. The following table presents a listing of agencies which provide social services in the imm ediate aroma of the City. The City provides funding (S92,500 for Fiscal Year 1992/93T to several of these agencies for homeless services. The Episcopal Service Alliance, Project Self- Sufficiency, and Saints Simon and Jude Catholic Church are located in the City's jurisdiction. The Huntington Youth Shelter with the goal to assist the City's numerous adolescent homeless is targeted for opening in June, 1993. This new shelter will be located in a rehabilitated structure in Central Park, and will provide overnight accommodations and counseling to homeless and runawav youths. Maximum stay will be limited to two weeks, with the goal of reuniting the vouths "Arith family members. Huntington Beach Appendix CHAS Annual Plan VZ-4 December 28, 1992 f. INVENTORY OF HOMELESS SERVICES kND FACILITIES Name Location Senices Prodded, Capacity Episcopal Service Alliance Provides motel vouchers, lodging, food, clothing, bus Huntington Beach coupons, medical attention, and counseling. Accommodations available for men, women, and families on first come basis. Project Self-Sufficiency Provides housing vouchers. Assists with finding Huntington Beach childcare, food, and clothing. Accommodates residents or workers of Huntington Beach or persons coming from shelters. Sts. Simon and Jude Catholic Church Provides food. Accommodates families on emergency Huntington Beach per night basis and only when church funds are available. CASA Youth Shelter Provides temporary shelter for abused children with Los Alamitos a capacity of 12 persons. Community Services Program Runs a youth shelter and proNides services for at Irvine risk children and families for the prevention of drug abuse and alcoholism. Internal House Provides 30-A5 day shelter service and individual and Seal Beach group counseling to bartered women and child-*en. Orange Coast Interfaith Shelter Accommodation available primarily for couples, Costa Mesa families, and single women with children. Ma>dmum 25-30 individuals. Shelter provided on an emergency per night basis. Senices include food, shower, and laundry. Agency also offers two-month program sening 12 families. Families required to save 80 percent of income during the time period. Counseling senices offered in parenting, budgeting, and job referrals. Salvation Army Daytime senice proNides food and housing referral Santa Ana for families. Mghttime service proNides shelter for men,women, and families for 3 nights, offered on an emergency first come basis. ✓ Shelter for the Homeless Provides room and board for i5-day probation Westminster period in which time all boarders must find employment. If employment is verified, the stay may extend up to 14 days. Accommodations available for men on a fist come bass. Amparo Youth Shelter Accommodates children between the ages of 11-17. Garden Grove Two-weekin-residence counseling program dealing with problems associated with family, school, drugs, and alcohoL Follow-up 4-6 weeks after-care program. Shelter prodded for children facing extreme homelessness. Source: City of Huntington Beach 1989 Housing Element update. Huntington Beach Appendix ,l CHAS Annual Plan ` VI-5 December 2L� 1992 /`b Potential for SRO Developments in the City To ensure adequate provision of housing for very low income residents, the City's 1989 Housing Element recommended investigating the potential for development of Single Room Occupancy (SRO) hotels. As a result of this recommendation, the City adopted Ordinance No. 3108 in 1991 to allow Single Room Occupancy units in Commercial Zones and within the North Huntington Center Specific Plan. Ordinances No. 3108-3111 were adopted simultaneously to define development guidelines and parking requirements for SRO developments in the permitted zones. Huntington Beach has planned to assist in the rehabilitation of an existing 67- room motel and conversion to an SRO during the coming year. Concentration of Racial and Ethnic Minorities and Their Housing Needs According to the 1990 Census, 79.2 percent of the Huntington Beach population is White, 11.2 percent is Hispanic, 8.0 percent is Asian, 0.9 percent is Black, 0.5 percent is American Indian, and 0.1 percent is Other. Concentrations are defined in terms of the Orange County averages for each racial/ethnic group. A "concentration" is defined as exceeding the County average for a specific group; a "moderate concentration" refers to at least double the County average for a particular group; and a "high concentration" refers to at least triple the County Average for a particular group. The County average concentration is 23.4 percent for Hispanic, 10.0 percent for Asian, 1.6 percent for Black, 0.4 percent for American Indian, and 0.1 percent for Other. While Hispanic represents the City's largest minority group, only one census tract (994.02) has above the County average concentration of Hispanic persons. Tract 994.02 is bounded by Warner Avenue to the north, Beach Boulevard to the east, Talbert Avenue to the south, and Golden West Street to th-e west. The proportion of Hispanic persons in this census tract is 49.1 percent, which constitutes a moderate concentration. According to the 1990 Census, overcrowding condition in this tract is severe, with six percent of the households living in overcrowded units and another 23 percent living in severely overcrowded units. Approximately 78 percent of the housing in this tract are rental units. The City will provide financial assistance, through the rental rehabilitation programs, for investor-owners to rehabilitate rental housing and alleviate overcrowding condition in this area. Asians are the second largest minority group in Huntington Beach. Fourteen of . the City's 44 census tracts have above the County average concentration of Asian persons. However, none of the 14 census tracts constitutes a.moderate or high concentration. Vietnamese, Chinese, Japanese, Filipino, Koreai--4 and Asian Huntington Beach Appendix CHAS Annual Plan VZ_6 December 28, 1992 ( J - Indian represent the predominant Asian groups scattered throughout Huntington Beach. Black, American Indian and other racial/ethnic minorities comprise only 1.5 percent of the City's total population. Four tracts have above County average concentration of Black persons. Three (992.41, 994.10, and 994.11) of the four tracts are located in the northeast portion of the City along the San Diego Freeway. Tract 994.11 constitutes a moderate concentration_ Residents of American Indian descent can be found throughout Huntington Beach. A total of 24 tracts have above the County average concentration, with two tracts (994.10 and 996.04) constituting moderate concentrations and three other tracts (994.07, 996.03, and 997.02) constituting high concentrations. All five tracts are located in the northern portion of the City. Also, seven other tracts (992.15, 992.45, 993.05,. 994.08, 994.10, 994.16, and 996.05) scattered across the City have above County average concentration of "Other" racial/ethnic groups. Energy Efficiency Programs and Incentives 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 residents, permanently handicapped, and non-English speaking customers control their energy use. Homeowners and 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. The City's Community Development Department will continue to support and assist in publicizing energy conservation progiarns offered by the utility companies. Huntington Beach Appendix CHAS Annual Plan, V17 December 28, 1992 �0 . CITY OF HUNTINGTON BEACH CONCENTRATION OF RACIAL/ETHNIC MINORITY GROUPS 1990 CENSUS POPULATION Concentration of Concentration of Concentration of Concentration of Hispanic Persons Asian Persons Black Persons American Indians 1990 %of 1990 %of 1990 % of 1990 % of Census Total Census Total Census Total Census Total Tracts Pop. Tracts Pop. Tracts Pop. Tracts Pop. 994.02 49.196 992.12 14S% 992.41 L7% 992.12 0.7% 99238 152% 993.07 1.7% 992.14 0.696 99239 11.5% 994.10 1.7% 992.17 0.7176 992-42 1L9% 994.11 2.4% 99235 0.71io 992.45 103% 99237 0.6% 992.46 16.5176 99239 0.6076 994.02 10.1% 992.40 0.6% 994.10 10.30i0 992.41 0.6% 994.13 11.0070 - 992.42 0.71Io 994.15 13.7% 992.44 0.707o 996.02 12.1-7. 992.45 0S% 996.03 10.31% 993.02 0.6% 996.04 11S176 993.05 0.7% 996.05 11.9% 993.05 0.5070 994.04 0.5% 994.07 1.2176 994.10 1.1% 994.11 0.5% 994.13 0.61r/o 994.16 0.8% 996.02 0.6076 996.03 13% 996.04 1.0% 997.02 1.3% County Average = County Average County Average County Average 23.4% = 10.0% = 1.7% = 0.4% Note: A"concentration is defined as exceeding the County average for a specific group; a "moderate concentration" refers to at least double the County average for a particular group; and a "high concentration" refers to at least triple the County average for a particular group. Source: US. Department of Commerce,Bureau of the Census, 1990 Census Report. Huntington Beach Appendix CHAS Annual Plan V1_8 December 28, 1992 Page -3- City Administrator's Weekly Report February 5, 1993 January. 1992 - Affordable Housing Task Force finalizes their recommendations for housing policies. February 3. 1992 - Staff transmits to the City Council the Housing Task Force Report. February 5. 1992 - Memorandum from Michael T. Uberuaga to Department Heads regarding follow-up to City Council workshop of January 25 on affordable housing. February 18. 1992 - CHAS approved by City Council. March 17. 1992 - Memorandum from Michael T. Uberuaga to Mike Adams officially outlining the new responsibilities for Housing as a result of the reorganization. March 30. 1992 - Memorandum from Mike Adams to Michael T. Uberuaga provides a response to issues raised by the City Council at their January 25, 1992, workshop. April 6. 1992 - Staff provides City Council with an analysis of the Housing Task Force report along with specific recommendations. Staff directed to prepare implementing ordinances. June 24. 1992 - City-wide housing inventory program commences. Drive-by window survey of each housing unit to determine quality of housing stock. August 13. 1992 - Draft Redevelopment agency housing policy distributed for review. September 14. 1992 - Staff receives report from Keyser Marston and Associates which provides the housing nexus analysis to implement an In-lieu housing fee as recommended by the Housing Task Force and City Council in April, 1992. Sept. - Dec. 1992 - Administration, Community Development, and Economic Development meet to discuss housing priorities city wide and allocation of resources for projects. January 1993 - Draft affordable housing ordinances prepared for staff circulation. Page -2- City Administrator's Weekly Report February 5, 1993 COMMUNITY DEVELOPMENT 1. Affordable Housing Program Chronology- In response to Council's request of January 19, 1993, the following is a chronology of past Council actions relating to the issue of affordable housing. A workshop item is scheduled to be presented to the City Council at their March 29, 1993, adjourned meeting. A more comprehensive overview of all the elements comprising the city's Housing Program will be presented for discussion at that time. my, 1990 City Council adopts Housing Element by adopting Resolution No. 6146 March 4. 1991 - Affordable housing work session with City Council. Key issues discussed include; what is the definition of affordable housing, define Redevelopment Agency legal obligations for providing affordable units, and should we hire a consultant to develop a housing program. April 29. 1991 - A joint study session of the City Council and the Planning Commission on affordable housing. Issues discussed included "What is affordable housing in Huntington Beach?" Future residential projects, proposed solutions, and Economic Development strategies. Mgy 21. 1991 - Memorandum from Mike Adams to Michael T. Uberuaga outlining a strategy for providing interim housing policies. July 3. 1991 - Memorandum from Mike Adams to Michael T. Uberuaga which provides the results of a planning survey of affordable housing requirements in other cities. September. 1991 - City Council is presented with an affordable housing strategy which outlines a proc9ss for an interim strategy to deal with pending residential f3rojects as well as a long term strategy for affordable housing. September 16. 1991 - Resolution 6323 which provides for an interim affordable housing strategy fails to pass on a 4-3 City Council vote. September 16. 1991 - Affordable Housing Task Force established by City Council. October. 1991 - City Administrator commences with the reorganization of the City Housing Program. January. 1992 - Preliminary review of the Comprehensive Housing 1 Affordability Strategy (CHAS). E I i Page 13 - Council/Agency Minutes - 5/18/92 A motion was made by Robitaille, seconded by Moulton-Patterson, to install the temporary flexible barricade system on Cascade Lane at the Huntington Beach/ Westminster city limits. The motion carried by the following roll call vote: AYES: Robitaille, Moulton-Patterson, Winchell , Silva, Green, MacAllister NOES: None ABSENT: Kelly (CityCouncil) AFFORDABLE HOUSING TASK FORCE ANALYSIS - STAFF DIRECTED TO PREPARE ORDINANCES (430.50) The City Clerk presented a communication from Community Development Director transmitting_ for Council consideration the Affordable Housing Task Force recommendations. The City Administrator stated he would encourage Council to address the basic policy issues of affordable housing so staff could follow Council ' s direction on each project. Mike Adams, Community Development Director, presented a staff report. Following. discussion, a motion was made by Green, seconded by Moulton- Patterson, to direct staff to prepare implementing ordinances on affordable housing for Planning Commission review and City Council action as recommended by the Affordable Housing Task Force. In addition the following is to be added to the Affordable Housing. Task Force Recommendations: 2.d. City staff should actively participate in the League of Cities/County of Orange Joint Committee on Reducing: Barriers to Affordable Housing. 3.d. The City should encourage developers who are unable to provide on-site affordable housing to purchase existing. "at risk" or non-restricted apartment projects to ensure their long term affordability. The motion carried by the following roll call vote: AYES: Robitaille, Moulton-Patterson, Winchell , Green, MacAllister NOES: Silva ABSENT: Kelly (City Council) PIER DONOR WALL (DESIGN 2) - APPROVED WITH STAFF DIRECTION (240.30.) The City Clerk presented a communication from Richard Barnard, Deputy City Administrator, regarding the Pier Donor Recognition Program. Rich Barnard, Deputy City Administrator/Administration, presented a staff report. Jim Pickell , Purkiss-Ross, reported on the conceptual plans of the donor wall design and stated the material used was granite with 1/4" high lettering. A motion was made by MacAllister, seconded by Green, to approve Design 2 - Granite Donor Wall , to authorize the expenditure of $29,590 for construction of the Pier Donor wall from the Pier Reconstruction Fund, and to direct staff 1 J REQUEST FOR CITY COUNCIL ACTION May 18, 1992 Date Submitted to: Honorable Mayor and City Council Members Submitted by: Michael T. Uberuaga, City Administrat � Prepared by: Michael Adams, Director of Community Developmen Subject: AFFORDABLE HOUSING TASK FORCE ANALYSIS APPROVED BY CITY COUNCILA Consistent with Council Policy? [ ] Yes b' New Policy or Except on CITY CLERK _ Statement of Issue, Recommendation,Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE• Transmitted for City Council consideration is the Affordable Housing Task Force recommendations . RECOMMENDATION• Motion to : "Direct staff to prepare implementing ordinances on affordable housing for Planning Commission review and City Council action as recommended by the Affordable Housing Task Force. " ANALYSIS• On April 6, 1992, the City Council continued action on any Affordable Housing recommendation until the Task Force was able to meet one more time with staff and discuss their differences . On May 6, 1992, the Task Force met with staff to discuss the issues of concern. The City Council appointed the Affordable Housing Task Force to make recommendations to the Council on affordable housing. The Task Force was given the charge of exploring the various aspects of affordable housing and to recommend an affordable housing strategy to implement the City' s adopted Housing Element. Task Force Conclusions The Affordable Housing Task Force Report provides the City Council with four major conclusions: - It recognizes that there is a City-wide need to provide affordable housing. - There is a direct link between the City' s long term economic stability and the quality and affordability of its housing stock. P10 5/85 � r - All future development has an obligation to address affordable housing (residential, commercial and industrial) . The City and development community need to work cooperatively on achieving a greater number of affordable units . The staff agrees with the conclusions reached by the task force. Council has previously adopted a set of _specific priorities for implementing an affordable housing strategy as part of the Comprehensive Housing Affordability Strategy (C.H.A.S. ) Report. These priorities will ultimately relate to how we allocate City housing funds and what our affordable housing needs will be. 1. Preservation and rehabilitation of the City. ' s existing single family and multi-family housing stock. 2 . Preservation of existing affordable housing for City residents with special needs, especially large families and seniors . 3 . Expansion of housing stock for all segments of the community, particularly lower income (50-80% Median Income) households . 4 . Increased opportunities for moderate income homeowners, particularly for first time buyers . 5 . Support housing needs for "at risk" population. 6 . Ensure that persons displaced by Redevelopment or any other governmental activities receive financial assistance and replacement units . Task Force Recommendations The Affordable Housing Task Force provided the City Council with specific recommendations : 1 . Housing opportunities for families earning less than 50% of the County Median income are primarly limited to existing rental units . Currently the Orange County Housing Authority is only able to meet 25% of the rental assistance needs for these families within the city. a) The City should assist in providing rental assistance for the remaining 75% of the City' s very low income individuals and families . b) The City should assist in providing financial assistance for the development of new rental units which target the very low income individuals and families. c) The City should identify locations for single room occupancy projects and other innovative projects which target the very low income. RCA - 5/18/92 -2- (3287d) 2 . Housing opportunities for families earning 50-80% of the County Median Income are primarily limited to rental units. New housing opportunities for low income individuals and families are not being adequately addressed by the market place. a) The City should assist in providing financial assistance for new rental projects which target low income individuals and families . b) The city should develop new development standards to encourage the development of new projects for the low income. c) The city should only assist in the development of for-sale housing units for low income households wh6n initiated through non-profit organizations . 3 . Housing opportunities for families earning 80-100% of the County Median Income are being met by the City' s existing supply of rental units. Ownership opportunities are not available. a) The City should not assist in the development of new conventional rental projects unless the vacancy factor significantly drops . b) The City should facilitate condominium conversion projects only if it results in a permanent net increase in affordable units . c) The City should explore opportunities for assistance and the adoption of new development standards to encourage the development of for-sale housing which targets moderate income individuals and families. 4 . Housing opportunities for families earning 100-120% of the County Median Income are primarily being met only through the City' s existing and new rental units . Ownership opportunities are very limited for moderate income households . a) The City should assist in providing financial assistance and subsidies for new for-sale housing projects which target moderate income households, or b) The City should adopt new development standards to encourage the development of for-sale housing which targets moderate income individuals and families. 5 . The community need for affordable housing has not been adequately addressed by the City and, therefore, should be considered as part of all new development projects . a) The City should place a condition on all new development projects stating the following: RCA - 5/18/92 -3- (3287d) "The City shall . require that concurrent with the approval of all new residential projects of three or more units the developer shall have and affordable housing obligation for a minimum of ten percent of the projects non-affordable units . An affordable housing proposal shall address one or more of the following: - On-site construction of affordable units . - Off-site construction of affordable units. - Payment of in-lieu fee for affordable units. The in-lieu fee alternative shall be figured at $1. 00 per square foot per non affordable units . The City shall also require that affordable housing in-lieu fee be paid at the time of development of all new commercial and industrial projects . The in-lieu fee shall be figured at twenty cents per square .foot. Staff Recommendations In addition to the Task Force recommendations staff recommends the following: - (Add to recommendation 2.d) City staff should actively participate in the League of Cities/County of Orange Joint Committee on Reducing Barriers to Affordable Housing. (Add to recommedation 3 .d) The City should encourage or require developers who are unable to provide on-site affordable housing to purchase existing "at risk" or non-restricted apartment projects to ensure their long .term affordability. There are four apartment projects in the City with a total of 524 units that are at risk of losing their status as low and moderate housing. It is conceivable that these units will experience substantial rent increases thus forcing families to move. Staff also recommends modifications to the recommended Task Force policies on the following issues : (Delete from recommendation 4 . a and 4 .b) The staff does not concur with these two recommendations . Households earning between $52,200-$62, 640 (100-120% of the Median Income) is where the market demand will be in the coming years . The staff has recently received several requests for financial assistance in conjunction with reductions or deletion of development standards . These projects are designed with small units at a high density. These projects are then presented under the guise of providing affordable housing. In reality their market rate selling price would be equivalent to 100-120% Median Income level. RCA - 5/18/92 -4- (3287d) Another reason that staff does not support financial benefits for households in this income range is that many landowners come to the City seeking something beyond the existing zoning on their property. This may include a general plan amendment, zone change, specific plan, development agreement, etc. In these cases the developer would be receiving a substantial benefit through a land use decision by the City. The land use decision has an economic value which should be returned to the project without additional City funds . Lastly, City Housing Funds or fee reductions should be targeted toward our primary affordable housing priorities as listed above. The staff does concur in part with the second aspect of the Affordable Housing Task Force recommendation which speaks to adopting new development standards for affordable housing projects. It is important to recognize that small and medium size projects will have difficulty providing on-site affordable housing given the fact we have development standards that are for luxury housing. In some cases an in lieu fee may be appropriate if the units cannot -be provided on-site. Other projects may need certain development standards reduced in order to make the project work financially. However, a new ordinance which modifies development standards should only be used as a tool to encourage those property owners who have their zoning in place and are not seeking a signficant land use change from the City. If a project does use a modified development standard ordinance the units should be for households earning between 50-80% of the Median Income. Property owners who desire a general plan amendment, specific plan or - development agreement should comply with the development standards their new specific plan provides (i .e. Holly-Seacliff, Bolsa Chica, NESI) . (Amend recommendation 5 . a) The staff strongly supports the intent of the Affordable Housing Task Force recommendation with respect to requiring a definite percentage of affordable units or in-lieu fee for all residential projects . However, it is important for the Council to be aware of the number of affordable units it can hope to provide given a 10% requirement.The 10% requirement will only achieve a portion of the afordable housing objective. In conjunction with this requirement new Affordable Housing Ordinances must be considered which proposed unique development standards and land use options.. As a reminder, the City Council adopted the following goal in the Housing Element: RCA - 5/18/92 -5- (3287d) Income Category No. of Units Very Low ( 0-50% County Median Income) 984 15 .8% Low ( 50-80% County Median Income) 1,284 20.3% Moderate (80-120% County Median Income) 1,370 22.0% 3, 638 58. 1% The remaining 2, 610 units are above 120% of the Orange County Median Income. The following chart is an estimated summary as to the number of units the City can acheive given a 10, 15 and 20% requirement. It is important to note that a majority of the units produced under any of the scenarios will be for sale units to households earning between 100-120% of the County Median income. The City' s long term needs are better addressed by providing a variety of housing types . Project. _lam 15 20% Holly-Seacliff 378 567 756 3, 780 units Moderate For Sale Units Meadowlark 60 90 120 600 units Waterfront 64 96 128 639 units NESI (Aston) 6.0 90 120 60 units Wintersburg School Site 26 39 52 260 units Bolsa Chica 488 732 976 4 , 880 units Atlanta/Huntington 60 90 120 600 units Rancho View School 20 30 40 200 units Bushard School Site 9, 12 58 units Total 1,222 1, 830 2,324 (33% of (50% of (64% of goal) goal) goal) Housing Element Goal = 3 , 618 units RCA - 5/18/92 -6- (3287d) The above data illustrates staff concerns about a flat 10% affordability requirement. Staff believes the 10% requirement is only appropriate for property that has existing zoning in place and is not requesting a change in land use status . For those developers who are seeking to enter into a development agreement with the City or need a general plan amendment or zone change to make their project work, a 20% requirement would be more benificial to the city in meeting its goals . Staff would also like to emphasize what ever percentage is ultimately adopted, the City Council needs to recognize that there is a need for both rental and for sale affordable units in Huntington Beach. Therefore, until such time as additional ordinances are adopted by the City which provide for new innovative solutions to affordable housing a 20% requirement should be considered. The concept of allowing an in-lieu affordable housing fee is a good one. It provides an opportunity for those projects which are unable to provide affordable housing units on-site to buy their way out. However, several basic questions are raised when a City decides to adopt an in lieu housing fee. - How much should the fee be? - What is the relationship or nexus between the fee and the affordable housing a City needs? The fee should relate to one of the following: a) The cost of construction a new affordable unit . b) The cost of rehabing an existing af-fordable unit . c) The difference in .price between the market rate unit and the affordable unit. The Affordable Housing Task Force .proposal of $1. 00 per square foot for residential and twenty cents per square foot for commercial and industrial does not relate to any of the three criteria stated above. Staff would recommend that the City Council postpone action on adopting an in-lieu affordable housing fee until a more comprehensive analysis can be performed. We would also recommend that only projects less than 20 units or 1 acre in size be permitted to pay the in-lieu fee. The primary objective of a housing strategy should be to build affordable units, not collect funds . RCA - 5/18/92 -7- (3287d) Summary As an alternative to the Affordable Housing Task Force recommendations staff would recommend that Council direct the preparation of ordinances for consideration which would adopt the Affordable Housing Task Force recommendations with the additions and modifications outlined in this report. 1. Property. which currently has zoning in place and is not seeking a change in land use status shall provide 10% of the project for low and moderate households. 2. Developers which are seeking a general plan amendment, zone change, specific plan, development agreement, etc. , shall provide 20% of the project for low and moderate households . 3 . Projects targeted for households earning between 100-120% of the Orange County Median income shall not be eligible for financial assistance from the City. 4 . The City should adopt new development standards to encourage the development of rental housing which targets low and moderate households . The ordinance should be used as a tool to encourage property owners who are not seeking special entitlements from the City to provide affordable housing. FUNDING SOURCE: Not applicable. ALTERNATIVE ACTION: Motion to: "Approve the Task Force recommendations with staff suggested modifications. " ATTACHMENTS: 1. Affordable Housing Task Force Report, January 1992 MTU:MA:HZ :kjl RCA - 5/18/92 -8- (3287d) AFFORDABLE HOUSING TASK FORCE REPORT TO CITY COUNCIL JANUARY 1992 ATTACHMENT N0. �-- AFFORDABLE HOUSING TASK FORCE Grace Winchell, City Council Don MacAllister, City Council Ken Bourguignon, Planning Commission Shirley Dettloff, Planning Commission Dick Harlow, Chamber of Commerce Doug Snyder, Chamber of Commerce Jim Righeimer, Board of Realtors Dean Allison, Habitat for Humanity John G. Hambuch, O.C. Housing Authority STAFF LIAISON Mike Adams, Director of Community Development Pat Spencer, Director Housing and Building INTRODUCTION On September 16, 1991, the City Council appointed a task force to make recommendations to .the Council on affordable housing. The task force was given the charge of exploring the various aspects of affordable housing and to recommend an affordable housing strategy to implement the City' s adopted Housing Element. The goal is to develop a long range affordable housing plan which addresses the projected needs of the community and achieves the expectations of Regional, State and Federal regulations . The task force recognizes that the issue of affordable housing is multi-faceted and complicated and therefore, must be addressed as a total package. The City' s affordable housing needs should be addressed jointly by the city and development community. The city needs to provide incentives to encourage affordable housing, and the development community should be required mandatory compliance with affordable housing policies . The attached report is a summary of the task forces past ten meetings . The report includes a suggested city-wide Affordable Housing Policy and recommendations for city initiated incentives to encourage affordable housing. (1) (2037d) FINDINGS AND RECOMMENDATIONS: The task force recommends that the City take a pro-active approach in order to achieve city-wide affordable housing. This includes the implementation of city incentives and the adoption of developer obligations . The City' s affordable housing needs should address both rental and for-sale housing units . The task force offers the following findings and recommendations : 1. Housing opportunities for families earning less than 50% of the County Median Income are limited to existing rental units . Currently the Orange County Housing Authority is only able to meet 25% of the rent assistance needs for these families within the city. Recommendation - The City should assist in providing rental assistance for the remaining 75% of the City' s very low income individuals and families . - The City should assist in providing financial assistance for the development of new rental units which target the very low income individuals and families . - The City should identify locations for single room occupancy projects and other innovative projects which target the very low income. 2. Housing opportunities for families earning 50-80% of the County Median Income are primarily limited to rental units . New housing opportunities for low income individuals and families are not being adequately addressed by the market place. Recommendation - The City should assist in providing financial assistance for new rental projects which target low income individuals and families . - The City should develop new development standards to encourage the development of new projects for the low income. - The City should only assist in the development of for-sale housing units for low income households when initiated through non-profit organizations . (2) (2037d) 3 . Housing Opportunities for families earning 80-100% of the County Median Income are being met by the City' s existing supply of rental units. Ownership opportunities are not available. Recommendation - The City should not assist in the development of new conventional rental projects unless the vacancy factor significantly drops. - The City should facilitate condominium conversion projects only if it results in a permanent net increase in affordable units. The City should explore opportunities for assistance and the adoption of new development standards to encourage the development of for-sale housing which targets moderate income individuals and families . 4 . Housing opportunities for families earning 100-120% of the County Median Income are primarily being met only through the City' s existing and new rental units. Ownership opportunities are very limited for moderate income households. Recommendation - The City should assist in providing financial assistance and subsidies for new for-sale housing projects which target moderate income households, or - The City should adopt new development standards to encourage the development of for-sale housing which targets moderate income individuals and families . (3) (2037d) 5 . The community need for affordable housing has not been adequately addressed by the City and, therefore, should be considered as part of all new development projects . Recommendation - The City should place a condition on all new development projects stating the following: "The City shall require that concurrent with the approval of all new residential projects of three or more units the developer shall have and affordable housing obligation for a minimum of ten percent of the projects units to be addressed in an affordable housing proposal . An affordable housing proposal shall address one or more of the following: - On-site construction of affordable units. - Off-site construction of affordable units. - Payment of in-lieu fee for affordable units . The affordable housing obligation shall be calculated in residential units and shall be based on 10% of3the non affordable units proposed. The in-lieu fee alternative shall be figured at $1. 00 per square foot . Affordable housing shall be defined as any residential unit which can be occupied by an individual and/or household earning less that 120% of the Orange County Median Income. The City shall also require that affordable housing in-lieu fee be paid at the time of development of all new commercial and industrial projects . The in-lieu fee shall be figured at twenty cents per square foot. " (4) (2037d) RECOMMENDED STRATEGIES: 1. Identify and encourage specific locations for Single Room Occupancy Projects. 2. Allow second units (granny units) in single family areas without a conditional use permit. In addition new standards for development need to be adopted in order to assure neighborhood compatibility. 3 . Identify and encourage selected locations for senior housing projects . 4 . Investigate and encourage employee housing within commercial and industrial projects. 5 . Explore condominium conversion projects with as built conditions if non affordable apartments can be converted to affordable condominiums . 6 . Adopt "Affordable Housing" development standards specifically related to density, parking, site coverage, open space and building height. 7. Investigate the feasibility of fast tracking development permits, waiver of selected public fees, obligation for public infrastructure improvements, etc. (5) (2037d) CITY DEMOGRAPHICS POPULATION DATA (U.S. Census) 1980 1990 Population 170, 505 181, 519 Households 43,822 45, 546 Avg. Household Size 2.78 2 . 62 Median Age 28 . 9 31. 9 Housing Needs for next 5 years (based on O.C. median income $52,200) as identified in Housing Element Very Low Income (below 50%) 984 units Low Income (50-80%) 1,264 units Moderate Income (80-120%) 1,370 units High Income (over 120%) 2. 610 units 6,228 Total Units EXISTING HOUSING UNITS Single Family 43,441 Multi Family 26,095 Mobilehome 3 .200 Total 72,736 Owner Occupied 40,284 55 .4% Renter Occupied 28, 595 39 .3% Vacant 3 ,857 5 .3% Total 72,736 100 . 0% HOUSING BY INCOME CATEGORY 1980 1988 No. of No. of Income Category Households Percent Households Percent Very Low Income 10, 980 18 . 0 16, 778 24 . 5 Low Income 9, 850 16 .2 12,753 18. 7 Moderate Income 13, 835 22.7 15, 939 23 .3 Upper Income 26,298 43 . 1 22, 925 33 .5 Total 60, 963 100 . 0 68,395 100. 00 (6) (2037d) ti AVERAGE RENTS (First Quarter, 1991) Average Average Type of unit Rent Size Sq. Ft. 0 Beds $637.00 522 1 Bedroom $740.37 707 2 Bedroom/l Bath $848 .38 929 2 Bedroom/l+ Bath $892. 17 966 3 Bedroom $959 . 62 1,214 4 Bedroom $1, 025 . 00 1. 500 Tota Averagel $806 . 54 829 FAMILY OF FOUR - PURCHASING POWER (1991) DEBT/INCOME 33% MORTGAGE AMOUNT* SALE PRICE INCOME % MEDIAN ANNUAL MONTH DETACH CONDO DETACH CONDO $41, 760 80 13, 800 1, 150 119,400 98, 000 149,250 122, 100 $52,200 100 17,225 1,435 155, 000 133,300 193, 750 166, 625 $57,200 110 18, 900 1, 573 172,200 150,400 215,250 188, 000 $62, 640 120 20, 670 1,722 190, 800 169, 000 238, 500 211,250 *Base on a rate of 9% (7) (2037d) q 9 REQUEST FOR CITY COUNCIL ACTION February 3 , 1992 Date Submitted to: Honorable Mayor and City Council Members Submitted by: Michael T. Uberuaga, City AdministratoCa��l� Prepared by: Michael Adams, Director of Community Develo nt Subject: AFFORDABLE HOUSING TASK FORCE RECOMMENDATIONS. APPROVED BY CITY COUN C :_. Consistent with Council Policy? Yes [ ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternative tions A achments:. l �xx � STATEMENT OF ISSUE• Recommendation of the Affordable Housing Task Force. RECOMMENDATION: Motion to: "Direct staff to analyze and prepare implementiung ordinances to follow-up on the Affordable Housing Task Force recommendation. " ANALYSIS: On September 16, 1991, the City Council appointed a task force to make recommendations to the Council on affordable housing. The task force was given the charge of exploring the various aspects of affordable housing and to recommend an affordable housing strategy to implement the City' s adopted Housing Element . The goal is to develop a long range affordable housing plan which addresses the projected needs of the community and achieves the expectations of Regional, State and Federal regulations . The task force recognizes that the issue of affordable housing is multi-faceted and complicated and therefore, must be addressed as a total package. The City' s affordable housing needs should be addressed jointly by the city and development community. The city needs to provide incentives to encourage affordable housing, and the development community should be required mandatory compliance with affordable housing policies . The attached report is a summary of the task forces past ten meetings . The report includes a suggested city-wide Affordable Housing Policy and recommendations for city initiated incentives to encourage affordable housing. Vl Plo 5/85 i S The Affordable Housing Task Force recognized that their work should continue beyond policy recommendation and have offered to .reconvene periodically to review and advise on specific affordable housing programs, policies and procedures . FUNDING SOURCE: . N/A ALTERNATIVE ACTION: The Council may continue this item for further discussion. ATTACHMENTS: 1 . Affordable Housing Task Force Report to City Council MTU:MA:kjl RCA - 2/3/92 -2 (2157d) AFFORDABLE HOUSING TASK FORCE REPORT TO CITY COUNCIL JANUARY 1992 ATTACHMENT NO. k AFFORDABLE HOUSING TASK FORCE Grace Winchell,. City Council Don .MacAllister, City Council Ken Bourguignon, Planning Commission . Shirley Dettloff, Planning Commission Dick Harlow, Chamber of Commerce Doug Snyder, Chamber of Commerce Jim Righeimer, Board of Realtors Dean Allison, Habitat for Humanity John G. Hambuch, O.C. Housing Authority STAFF LIAISON Mike Adams , Director of Community Development Pat Spencer, Director Housing and Building INTRODUCTION On September 16 , 1991, the City Council appointed a task force to make recommendations to the Council on affordable housing . The task force was given the charge of exploring the various aspects of affordable housing and to recommend an affordable housing strategy to implement the City' s adopted Housing Element . The goal is to develop a long range affordable housing plan which addresses the projected needs of the community and achieves the expectations of Regional, State and Federal regulations . The task force recognizes that. the. issue of affordable housing is multi-faceted and complicated and therefore, must be addressed as a total package. The City' s affordable housing needs should be addressed jointly by the city and development community. The city needs to provide incentives to encourage affordable housing, and the development community should be required mandatory compliance with affordable housing policies . The attached report is a summary of the -task forces past ten meetings . The report includes a suggested city-wide Affordable Housing Policy and recommendations for city initiated incentives to encourage affordable housing. �1� FINDINGS AND RECOMMENDATIONS: The task force recommends that the City take a pro-active approach in order to achieve city-wide affordable housing . This includes the implementation of city incentives and the adoption of developer obligations . The City' s affordable housing needs should address both rental and for-sale housing units . The task force offers the following findings and recommendations : 1 . Housing opportunities for families earning less than 50% of the County Median Income are limited to existing rental units . Currently the Orange County Housing Authority is only able to meet 25% of the rent assistance needs for these families within the city. R mmen a i n - The City should assist in providing rental assistance for the remaining 75% of the City' s very low income individuals and families . - The City should assist in providing financial assistance for the development of new rental units which target the very low income individuals and families . - The City should identify locations for single room occupancy projects and other innovative projects which target the very low income. 2 . Housing opportunities for families earning 50-80% of the County Median Income are primarily limited to rental units . New housing opportunities for low income individuals and families are not being adequately addressed by the market place. Recommendation - The City should assist in providing financial assistance for new rental projects which target low income individuals and families . - The City should develop new development standards to encourage the development of new projects for the low income. - The City should only assist in the development of for-sale housing units for low income households when initiated through non-profit organizations . (2) 3 . Housing Opportunities for families earning 80-100% of the County Median Income are being met by the City' s existing supply of rental units . Ownership opportunities are not available. Recommendation - The City should not assist in the development of new conventional rental projects unless the vacancy factor significantly drops . - The City should facilitate condominium conversion projects only if it results in a permanent net increase in affordable units . The City should explore opportunities for assistance and the adoption of new development standards to encourage the development of for-sale housing which targets moderate income individuals and families . 4 . Housing opportunities for families earning 100-120% of the County Median Income are primarily being met only through the City' s existing and new rental units . Ownership opportunities are very limited for moderate income households . Recommendation - The City should assist in providing financial assistance and subsidies for new for-sale housing projects which target moderate income households, or The City should adopt new development standards to encourage the development of for-sale housing which targets moderate income individuals and families . i i (3) 5 . The community need for affordable housing has not been adequately addressed by the City and, therefore, should be considered as part of all new development projects . Recommendation - The City should place a condition on all new development projects stating the following: "The City shall require that concurrent with the approval of all new residential projects of three or more units the developer shall have and affordable housing obligation for a minimum of ten percent of the projects units to be addressed in an affordable housing proposal . An affordable housing proposal shall address one or more of the following : - On-site construction of affordable units . - Off-site construction of affordable units . - Payment of in-lieu fee for affordable units . The affordable housing obligation shall be calculated in residential units and shall be based on 10% of the non affordable units proposed . The in-lieu fee alternative shall be figured at $1 . 00 per square foot . Affordable housing shall be defined as any residential unit which can be occupied by an individual and/or household earning less that 120% of the Orange County Median Income. The City shall also require that affordable housing in-lieu fee be paid at the time of development of all new commercial and industrial projects . The in-lieu fee shall be figured at twenty cents per square foot . " (4) RECOMMENDED STRATEGIES: 1 . Identify and encourage specific locations for Single Room Occupancy Projects . 2 . Allow second units (granny units) in single family areas without a conditional use permit . In addition new standards for development need to be adopted in order to assure neighborhood compatibility. 3 . Identify and encourage selected locations for senior housing projects . 4 . Investigate and encourage employee housing within commercial and industrial projects . 5 . Explore condominium conversion projects with as built conditions if non affordable apartments can be converted to affordable condominiums . 6 . Adopt "Affordable Housing" development standards specifically related to density, parking, site coverage, open space and building height . 7 . Investigate the feasibility of fast tracking development permits, waiver of selected public fees, obligation for public infrastructure improvements, etc. (5) CITY DEMOGRAPHICS POPULATION DATA (U.S. Census) 1980 1990 Population 170, 505 181, 519 Households 43 , 822 45, 546 Avg . Household Size 2 . 78 2 . 62 Median Age 28 . 9 31 . 9 Housing Needs for next 5 years (based on O.C. median income $52, 200) as identified in Housing Element Very Low Income (below 50%) 984 units Low Income - (50-80%) 1, 264 units Moderate Income (80-120%) 1,370 units High Income (over 120%) 2 , 610 units 6, 228 Total Units EXISTING HOUSING UNITS Single Family 43 ,441 Multi Family 26, 095 Mobilehome 3 ,200 Total 72, 736 Owner Occupied 40, 284 55 .4% Renter Occupied 28, 595 39 . 3% Vacant 3 , 857 5 . 3 Total 72, 736 100 . 0% HOUSING BY INCOME CATEGORY 1980 1$ . No . of No . of Income Category Households Percent Households Percent Very Low Income 10, 980 18 . 0 16, 778 24 . 5 Low Income 9 , 850 16 .2 12, 753 18 . 7 Moderate Income 13 , 835 22 . 7 15, 939 23 .3 Upper Income 26,298 43 . 1 22, 925 33 . 5 Total 60, 963 100 .0 68, 395 100 . 00 (6) 4 AVERAGE RENTS (First Quarter, 1991) ' Average Average Type of unit Rent Size Sq. Ft . 0 Beds $637. 00 522 1 Bedroom $740 . 37 707 2 Bedroom/l Bath $848 . 38 929 2 Bedroom/l+ Bath $892 . 17 966 3 Bedroom $959 . 62 1, 214 4 Bedroom $1 , 025 .00 1,500 Tota Averagel $806 . 54 829 FAMILY OF FOUR - PURCHASING POWER (1991) DEBT/INCOME 33% MORTGAGE AMOUNT* SALE PRICE INCOME % MEDIAN ANNUAL MONTH DETACH CONDO DETACH CONDO $41, 760 80 13 , 800 1, 150 119 ,400 98 , 000 149 ,250 122 , 100 $52, 200 100 17, 225 1,435 155, 000 133 , 300 193 , 750 166 , 625 $57,200 110 18, 900 1, 573 172,200 150,400 215, 250 188, 000 $62, 640 120 20, 670 1, 722 190, 800 169 , 000 238, 500 211, 250 *Base on a rate of 9% (7) y3v- sv REQUEST FOR CITY COUNCIL ACTION 91-66 Date September 16, 1991 Submitted to: Honorable Mayor and City Council Members Submitted by: Michael T. Uberuaga, City Administratorofet Prepared by: Ray Silver, Assistant City Administrator94& Subject: Interim Affordable Housing Strategy Consistent with Council Policy? [ ] Yes [ ] New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source, Alternative Actions, Attachments: STATEMENT OF ISSUE: After considerable discussion at the September 9, 1991, joint City Council/Planning Commission study session in which the city's affordable housing needs were reviewed, staff was instructed to agendize a resolution calling for an interim housing strategy policy and the formation of a City Council/Planning Commission, and citizen group committee to formulate a long—term affordable housing strategy. RECOMMENDATION: 1) Adopt attached Resolution No. 6 3023 which provides for an interim Affordable Housing Strategy. ANALYSIS: Within the next six weeks months, the city will be working on the development of a long range affordable housing program, and asked to make decisions on, approximately 12,000 new residential units. Policy direction is needed to provide staff and the development community with a framework for addressing varying levels of affordable housing needs in these upcoming projects. Currently, using the city adopted and state certified Housing Element as a guide, staff has been recommending a suggested condition of approval on all discretionary residential projects that the project shall make available 20% of those units to individuals/families of low—moderate income levels. The proposed Interim Affordable Housing Strategy will replace the present staff recommended condition until such time that the permanent long range affordable housing.strategy is adopted by Council. As directed by Council and the Planning Commission vote at the September 9, 1991, joint study session (draft September 1991 Housing Strategy attached) City Council directed staff to return with a resolution for considering the adoption of an interim Affordable Housing Strategy with an ultimate goal of developing a permanent, long—term housing strategy as official city policy. ATTACHMENTS: 1) Resolution ' 2) Draft Housing Strategy MTU/RS/CPS:ls 1 9612r PIO 5/85 RESOLUTION NO. G 3 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING AN INTERIM AFFORDABLE HOUSING STRATEGY WHEREAS, the City Council of the City of Huntington Beach adopted and received certification by the State Department of Housing and Community Development for its 1989 Housing Element in accordance with Section 65585(a) of the California Government Code; and The City Council finds that the policies in the Housing Element encourage increasing the supply of housing affordable to low and moderate income households; and The City Council has adopted policies which assure accessibility to decent housing for all; and The City Council encourages and promotes the availability of a range of housing types throughout the community; and In order to help implement the State-certified goals of the Housing Element of the General Plan, the City Council desires to adopt an interim Housing Strategy until such time as a comprehensive long range implementation plan is approved, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows : -1- 1. The Interim Housing Strategy of the City of Huntington Beach is as follows : A. General Affordable Housing Requirements Any residential development that receives a "benefit" as a result of a public action which ultimately increases the value of the project, shall provide a minimum of 20% of the units for low and/or moderate income households, either on-site or off-site. The basic philosophy behind this policy reasons that the City should receive a benefit in return for a benefit granted. For example, if one acre of an industrial property is re-designated to residential, the value of the property increases significantly. A portion of the increased value should be returned to the City to meet the adopted affordable housing goals of the Housing Element. Examples of benefits include, but are not limited to, the following: 1) A General Plan Amendment 2) Zone Change/Specific Plan 3) Development Agreement with the City 4) Direct financial assistance from the City or Agency 5) Significant modification to development standards which can be translated into a financial savings to the project B. Specific Affordable Housing Requirements 1) Master-planned communities exceeding ten (10) acres shall provide, either on-site or off-site, 20% of the units at affordable levels . a. For sale or for rent units shall meet moderate income levels, rather than very low and low-income levels . However, the City/Agency shall have the option to assist in making the unit affordable to lessor-income groups by developing a specific program with the developer in advance of commencement of design specifications . b. For sale units shall also meet first time buyer requirements . There shall be no resale covenants attached to the particular projects; except that the City/Agency shall be given the first right of refusal at future resale (market value) of such units in order to maintain the availability of affordable units . -2- 2) Assisted units (bond financing, down payment assistance, interest write downs, etc. ) shall include covenants regarding resales . a. For sale units and rental units need only to meet moderate income levels, (unless specified otherwise by the financing program) but shall be required to maintain that level for thirty (30) years . City/Agency financially assisted units may be provided with longer terms . 3) Developments of less than ten (10) acres, whether for sale or rental units or single-family detached subdivisions may: a. Build 20% of the required affordable units at an alternate location within the City. Such alternate locations must be under the control of the applicant at the time the development application is submitted to the City for approval . b. Rehabilitate existing units and ensure long-term affordability through recordation of restrictive covenants. C. Preserve existing affordable units by recording covenants that ensure long-term affordability. d. Prepare a program which is designed to generate new opportunities for affordable housing, subject to approval of the City/Agency. e. Make an in-lieu fee payment to an affordable housing trust fund, if such a program is adopted by the City Council. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the day of 1991. Mayor ATTEST: APPROVED AS TO FORM: City Clerk (mil City Attorney ?� - c;-rr-f� REVIEWED AND APPROVED: INI IATED AND APPROVED: 7 a 'l City Administrator � rect Co u t Development -3- CITY OF HUNTINGTOW BEACH COUNCIL ADMINISTRATOR COMMUNICATION HUNTINGTON BEACH To Honorable Mayor and From Michael T. Uberuaga City Council Members City Administrator Subject Review of the Proposed Date September 4, 1991 Affordable Housing Strategy Staff has developed an Affordable Housing Strategy for consideration by the City Council. This item is scheduled for the study session on Monday, September 9. Staff is requesting Council to discuss the matter and consider approval at a future City Council meeting of the interim strategy as City Policy, until such time as the long-range Affordable Housing Program is adopted by" the City Council. The long-range Affordable Housing Program should occur within the next calendar year. The interim strategy is necessary because decisions are proposed to be made on several major development projects which will require City Council action before a permanent Affordable Housing Program is in place. My department has requested the City Attorney's office to prepare a legal opinion, outlining the legal requirements for the City of Huntington Beach to provide affordable housing. The process which is proposed to develop a Long-Term Affordable Housing Program provides for input by interested parties while the Plan is formulated. Under the leadership of a proposed City Council/Planning Commission Committee, staff will prepare a draft plan to include the elements necessary to provide for- the City's fair share of low and moderate income housing. The attached document provides the approach proposed by staff and the actions that Council is requested to take. MTU/RS:ls Attachment 9580r t� 4 91?lf a X1°/ 'y 17 4�td_2J -/ce, � ' � HUNYWHUTOW BEACH HOUSNUG STRATEGY ili �t it � a - w ...� r x+.±.::„. a [3 � - - Mal' �.:.. awl i. 3 `1 i - - PREPARE® BY ADMINISTRATION ECONOMIC DEVELOPMENT COMMUNITY DEVELOPMENT SEPT, 1991 TABLE OF CONTENTS I. Executive Summary................................................ 1-2 II. Affordable Housing Needs - Through 1994 (Chart)..... 3 III. Housing Strategy.................................................... 4-6 IV. Current Policy....................................................... 6-7 V. Interim Strategy.................................................... 7-9 VI. Process to Develop Long-Term Strategy.................. 9-10 VII. Suggested City Council Actions ............................. 11 VIII. Appendix A. Description of Existing Programs B. Legal Opinion from Stradling, Yocca, Carlson, & Rauth C. Basis for SCAG Regional Housing Needs Assessments D. Housing Strategy - CDBG funds CITY OF HUNTINGTON BEACH -HOUSING STRATEGY I. EXECUTIVE SUMMARY Goal: To provide the City Council with a strategy which addresses the short- and long-term need to develop affordable housing within the City of Huntington Beach. Also, to comply with federal and state laws requiring the City and the Redevelopment Agency to maintain and provide for the development of additional affordable housing units. Objectives: 1) Evaluate existing ordinances which are intended to provide affordable housing to determine methods to implement these ordinances more effectively, and increase the number of affordable housing units. 2) Develop an interim affordable housing strategy to address major residential projects that will be forthcoming in the next several months. 3) Develop a long-term affordable housing implementation strategy that will meet the City's and Agency's responsibility for providing housing for low and moderate income families. *Existing Regulations and Programs: Density Bonus Program (ordinance pending) Second Unit Ordinance (Granny units) Senior Housing Ordinance Condominium Conversion Ordinance Single Room Occupancy Ordinance Tax Exempt Mortgage Financing Program 20% Set Aside Funds (Redevelopment Housing funds): Shared equity program, low-interest loans, grants Community Development Block Grant Program (federal funds) * For a detailed description of existing programs see Appendix A. Interim Strateev: 1) When the City grants a "benefit" to a developer, (such as a General Plan Amendment or Zone Change), the developer will be responsible for providing 20% of the units to households of low and/or moderate income. a. For sale or for rent housing units may be all moderate income units, rather than a combination of very low, low, and moderate income units. For sale units would also have to meet first-time buyer requirements. b. Housing units provided with financial assistance, whether for sale or for rent, would need to meet moderate-level income requirements and include restrictive covenants to ensure long-term affordability. 1 2) Options for providing affordable housing within the City include the following: a. Build required affordable units at alternate locations (offsite, but within the City). b. Rehabilitate existing units and ensure long-term affordability through restrictive covenants. c. Preserve existing affordable units by recording covenants that ensure long-term affordability. d. Developer may design a. specific program for affordable housing not identified herein. e. Developer may contribute an in-lieu fee payment to an affordable housing trust fund, if such fund is adopted by the City Council. Long-Term Strategy: 1) Form a City Council Committee to work with staff on housing issues and development of a long-range affordable housing implementation strategy. 2) Consider establishment of a non-profit entity to construct and/or manage low-income housing. 3) Consider adoption of an in-lieu fee payment to an affordable housing trust fund which may be used to develop affordable housing projects. 4) Define and prioritize use of the Redevelopment Agency's housing set aside funds. 5) Consider development of a housing referral directory as a guide to affordable housing opportunities. 6) Consider establishment of a list of potential homeowners/renters who would qualify for an affordable housing unit. 7) Develop an ordinance which modifies development standards to lower the cost of constructing affordable housing units. 8) Continue to use existing programs and fully define program requirements. These programs include shared equity, low-interest loans and grants, tax exempt mortgage financing, Section 8 housing vouchers, mortgage credits, and CDBG housing rehabilitation loans and grants. 2 lI. AFFORDABLE HOUSING NEEDS - THRU 1994 Combined Housing Element Staff's Revised Family Income SCAG Goal Estimated Goal Programs Number Responsibility Funding Very Low 0-50% Orange County 984/units 650/units Single Room (SRO) 450 Private and/or Private with City Median Income (15.8%) (Rental) Non-Profit support of bonds ($26,100) (14.0%) Private with Family Units 200 Private and/or City/Agency (Density Bonus) Non-Profit Assistance Low 50-80% Orange County 1264/units 460/units "Granny Flats" 10 Private Private Median Income (20.3%) (Rental) Rehabilitation of Private/City CDBG ($38,000) (10%) Existing units, 250 Assistance 20% Set-a-side Funds Shared Equity Private and Private and City 200 City/Agency 20% Set-a-side Funds Density Bonus Assistance Moderate I 80-100% Orange County 1000/units Modified Devel. Private and Private and/or Median Income (Rental) Standards Ord. 1000 City/Agency City supported, ($41,760-$52,200) (21.0%) Tax Exempt Assistance Tax Exempt Multi-family Housing Bonds 1370/units bonds, Density Bonus Moderate II 100-120% Orange (22.0%) 800/units Privately financed, 800 Private and/or Private and/or County (for sale) Tax Exempt City/Agency City supported Median Income (17.0%) Financing Assistance Tax Exempt $52,200-$62,650 Shared Equity Bonds - 20% Set- Silent 2nd Deeds, a-side Funds Upper Above 120% 2610/units 1810/units Single Family 1810 Private Private Orange County (for sale) Residential Median Income (41.9%) (38.0%) ($62,650+) TOTALS: 6,228/units 4,720/units 4720/units 0454y :3 III. A. HOUSING STRATEGY The purpose of this report is to identify options for the City, Redevelopment Agency and development community which will implement the adopted policies of the Housing Element, for the provision of affordable housing. The first part of the report lists the variety of ordinances and programs which currently exist to facilitate affordable housing. An estimate as to the number of units the City could hope to achieve on a voluntary basis in the next three years with these current ordinances has been provided. The interim strategy discussed in Section V of this report identifies specific policy recommendations and conditions of approval which the staff recommends should be applied to residential development in the City. Many of the major projects the City will be reviewing in the next few months (Holly-Seacliff, Waterfront, Bolsa Chica) need to address affordable housing, as required by the Redevelopment Plan or to be consistent with the City's adopted Housing Element. The staff has defined the type of housing which should be provided by the private sector and which units the City and/or Redevelopment Agency should assist. The chart contained in the executive summary of this report provides this information and recommendations. The last part of the report (Section VI) contains important recommendations for the future of affordable housing. It provides the framework for a long range plan to implement the affordable housing goals of the Housing Element. Some of the recommendations are already contained in the Housing Element, while others are new suggested programs. For an interim housing program to be successful, it needs to be acted upon in conjunction with an overall long term strategy. However, an interim strategy as outlined in part two of this report is critical at this time to secure a significant number of affordable units. Before discussing the details of this report, it is useful to briefly review the adopted goals in the Housing Element and the housing requirements for Redevelopment Projects containing residential components. Appendix B provides the City Council with the legal basis for these requirements. The Housing Element has identified the need to provide the following housing by income group for the time period between 1989-1994: Income Cateaory # of Units 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 2.610 41.9% Income Market Rate) Total Units 6,228 100% Note: 1991 - $52,200 Median Income for a Family of Four 4 Although these goals were adopted as part of the Housing Element, staff believes that given current and projected market conditions, a more realistic goal over the next three (3) years would be the following: Income ate o # of Units ( % ) Very Low (0-50%) (County Median Income) 650 Units 14% Low (50-80%) (County Median Income) 460 Units 10% Moderate I (80-100%) (County Median Income) 1,000 Units 21% Moderate II (100-120%) (County Median Income) 800 Units 17% Upper (Over 120%) (County Median Income) 1.810 Units 38% TOTAL: 4,720 Units 100% Although these numbers do not satisfy the SCAG RHNA demands, they would display progress toward meeting those requirements. Such a finding will be necessary in submitting the mandatory Housing Element update to the state in 1994. B. REDEVELOPMENT REQUIREMENTS (this requirement is a subset of the Housing Element goals) In addition to the goals contained within the Housing Element, California Redevelopment Law requires: 1) Fifteen (15) percent of all residential units constructed within a specific Redevelopment project area are required to be affordable to individuals/families of low- and moderate-income. In addition, forty (40) percent of these units must be made available to individual families of very low incomes (0-50% median) . Further, these units must be developed within that specific Redevelopment project area. 2) All existing low and moderate income residential units demolished within a project area need to be replaced within four (4) years of such removal. The replacement units are over and above the fifteen (15) percent requirement and can be located anywhere in the City. 5 Current and projected Redevelopment project obligations include the following: Main-Pier Project Area 500 affordable units Main-Pier Project Area 240 affordable/replacement units Yorktown-Lake Project Area 12 affordable units Oakview Project Area 8 affordable/replacement units Huntington Center Project Area 1 affordable/replacement unit TOTAL: 761 affordable/replacement units IV. CURRENT POLICY A. The City's adopted Housing Element stipulates several policies which address affordable housing. Some of the key policies are listed below as a reference. * 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 single parent households. * Utilize incentives where feasible to encourage the production of low and moderate income housing. * Promote the availability of sufficient rental housing to afford maximum choice of housing type for all economic segments of the community B. To implement the above stated policies, the City Council has adopted a number of ordinances and programs as listed below which encourage and assist in the development of affordable housing. Unfortunately, these programs alone will not provide an adequate number of units to meet the City's needs. 6 EXISTING ORDINANCES AND PROGRAMS TO PROMOTE AFFORDABLE HOUSING OPPORTUNITIES 1991 - 1994 Program: Density Bonus Program** Second Unit Ordinance "Granny Flat"** Senior Housing Ordinance - (Allows for Reduced Standards, but has no Affordable Component)** Condominium Conversion Ordinance** Single Room Occupancy Ordinance** Tax Exempt Mortgage Financing Program* 20% Set Aside Funds (Redevelopment Housing Fund)* Community Development Block Grant - Low Interest Rehabilitation Loans* Staff estimates that these programs outlined above will generate approximately 500 units. This is based upon the staff's analysis of current market conditions and knowledge of future projects. * Existing/Ongoing ** Under-Utilized V. INTERIM STRATEGY In an effort to provide for a diversity of housing within the community, implement the goals of the adopted Housing Element and meet the legal requirements of Redevelopment Law, the staff is recommending that the City Council consider adopting the policy outlined below. Within the next year, the City will be asked to make decisions on about 12,000 residential units. Policy direction is needed to provide staff and developers with a framework for addressing affordable housing in these upcoming projects. The interim program outlined below is not an inclusionary housing program, in that affordable housing is only required under very specific circumstances, as identified in Sections A and B below. An inclusionary housing program would impose both low and moderate income restrictions on all residential projects, irrespective of their size. 7 New Policy A. General Affordable Housing Requirements Any residential development that receives a "benefit" as a result of a public action which ultimately increases the value of the project, shall provide a minimum of 20% of the units for low and/or moderate income households, either onsite or offsite. The basic philosophy behind this policy reasons that the City should receive a benefit in return for a benefit granted. For example, if one acre of an industrial property is re-designated to residential, the value of the property increases significantly. A portion of the increased value should be returned to the City to meet the adopted affordable housing goals of the Housing Element. Examples of benefits include, but are not limited to, the following: 1) A General Plan Amendment 2) Zone Change/Specific Plan 3) Development Agreement with the City 4) Direct financial assistance from the City or Redevelopment Agency 5) Significant modification to development standards which can be translated into a financial savings to the project It should be noted that the number of affordable units that a project is required to provide is not linked to the degree of benefit received, but rather to the number of affordable units the city needs to have built. Assessing the financial value of a benefit such as a Development Agreement to a developer is not possible. B. Specific Affordable Housing Requirements 1) Master-planned communities exceeding ten (10) acres shall provide 20% of the units at affordable levels of which 15% shall be within the proposed development, and the remaining 5% may be provided offsite. a. For sale or for rent units need only meet moderate income levels, rather than very low and low-income levels. However, the City/Agency would have the option to assist in making the unit affordable to lessor-income groups by developing a specific program with the developer in advance of commencement of construction. b. For sale units would also have to meet first time buyer requirements. There would be no resale covenants attached to the project. However, the City/Agency would be given first right of refusal at resale of the units at a future date in order to increase the availability of affordable units. 2) Assisted units (bond financing, down payment assistance, interest write downs, etc.) shall include covenants regarding resales. a. For sale units and rental units need only to meet moderate income levels, (unless specified otherwise by the financing program) but would be required to maintain that level for thirty (30) years. City/Agency financially assisted units may be provided with longer terms. 8 3) Less than ten (10) acre developments (whether for sale or rental units) or single-family detached subdivisions which are not part of a master-planned community may: a. Build 20% of the required affordable units at an alternate location within the City which is under the control of the applicant at the time of application to the City. b. Rehabilitate existing units and ensure long-term affordability through recordation of restrictive covenants. c. Preserve existing affordable units by recording covenants that ensure long-term affordability. d. Prepare a program which is designed to generate new opportunities for affordable housing, subject to approval of the City/Agency. e. Make an in-lieu fee payment to an affordable housing trust fund, if such a program is adopted by the City Council. VI. PROCESS TO DEVELOP LONG-TERM STRATEGY If the City Council adopts the suggested interim strategy, it is recommended that a Planning Commission and City Council Committee be formed to work with staff to develop a long range affordable housing implementation plan. The committee would work with staff for the next six-eight months to organize program priorities and propose adoption of specific programs to develop affordable housing units. The committee would hold meetings open to the public to invite interested parties to give their input on how the long-range program should be developed and identify specific components. The long-range implementation plan may contain, but not be limited to the following components: A. Consider establishment of a Non-Profit Housing Corporation to assist in the development and preservation of long-term affordable housing. A non-profit housing organization can help meet the goals for affordable housing by implementing or assisting with the implementation of programs described in the Housing Element. Several methods include assembling a development package and selling it to a profit motivated developer, participating in a joint venture with a profit motivated developer, or directly becoming the developer itself. The City may also coordinate with existing 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 affordable housing in Huntington Beach. B. Consider adoption of an in-lieu fee payment schedule for projects less than 10 acres in size to be used for the preservation of existing affordable units and creation of new affordable units. The funds could be administered by a non-profit housing corporation, housing authority, or the City. C. Define priorities for the Redevelopment Agency's housing set aside funds with specific goals and standards for the allocation of those funds to subsidize affordable housing projects. 9 D. Consider development of a housing referral directory. The City should prepare a guide for housing opportunities primarily targeted for renters and homeowners eligible for low-to-moderate income housing. E. Consider establishment of a list of potential homeowners/renters who would qualify for an affordable housing unit. When new units are constructed or old units rehabilitated, it would be beneficial to either a non-profit corporation or private developer to have an established list of qualified residents eligible for the units. This would facilitate the renting or sale of affordable units and reduce holding costs. F. Develop an ordinance which speaks to modifying development standards to lower the cost of constructing affordable housing units. The ordinance could include the following: 1) A modified fee schedule based on the degree of affordability. Park and recreation fees, and entitlement fees could be based on a graduated scale depending on the level of affordability the unit was targeted toward. 2) Common area amenities (pools, spas) could be made optional. 3) The number of fully enclosed parking spaces could be reduced. Carports may be used as an option. 4) Common recreation area could be reduced or traded off for private recreation space. 5) Lot sizes could vary to allow for greater design flexibility for affordable units. 6) Consider using a floor area ratio formula in lieu of units per acre to determine the density of a site. For example, today's code uses units per acre to determine the number of units which can be constructed on a site. Using a floor area ratio formula (determined by dividing the gross floor area of all buildings on a lot by the area of that lot) would be used with minimum requirements for bedroom standards, setbacks and open space. G. Continue use of existing programs and fully define program requirements. These programs include shared equity; low interest loans and grants, tax exempt mortgage financing, Section 8 housing vouchers, mortgage credits, and housing rehabilitation. 10 VII. SUGGESTED ACTIONS: To begin implementation of the strategy discussed in this report, staff recommends that the City Council take the following actions: 1) Direct staff to agendize the issue of affordable housing for discussion and potential action at a future City Council meeting. 2) Direct staff to prepare a resolution for City Council adoption which incorporates the interim strategy outlined in this report, also for consideration at a future City Council meeting. 3) Form a Planning Commission and City Council Committee to work with staff on a long-range implementation plan to meet the City's affordable housing needs within the next six to eight months. 0478 R 11 APPENDIX A 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 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. 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. 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, certin 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. Condominium Conversion Ordinance The City of Huntington Beach has adopted a stringent Condo Conversion Ordinance that requires onverted 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) 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) 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 th 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) 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. 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 Marchl, 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) 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. The 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 loans available to lower income households; b) 6% loans available to median income households within identified Community an 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 -2- 10 =- 01 - 90 05 : 29PM ■SYC& R Newpo r t Beach CA P02/* * APPENDIX B STRADLING, YOCCA, G.&RLSON & RATJTH A PRof E8510NAI CORPORATION rg.-T w.STRCO­AOLING LAWRENCC A.CO ATTORNEYS AT LAW JLT"N C•RRFG�CNRIPGc NICK C.YOCCA WARREN R. DIvcN RENA C.STONE C.CRAIG CAft'SON DAMES D.CL^PK 660 NEW'PORT CENTER DRwE,5WTE 1600 D.[aJ•S[- ,y WILLIAM w.AAUTH III STEPHEN H.LACOUNI - K.C.gcm^^r N^aLlT L.•✓ELL^ND MQ5T OFFICE eOx 1680 R1CMAao C,GOOOMAN STCPHCN T.rRECMAN x JOHN J.MURPMY PCRRY J.TAONOPSKY N[WPO RT 9[AC H,CALIFORNIA 9266E-6441 ;r,: i: TMOMAS A CLAPK,Jw. RO2CAT A.WILSON TELEPHONE (7,A) 725-4000 OPEN A.FRYPLIAN CNCRYL A. DOW UAVID R.M-CWCN NIC,11OLA'a J.YOCCA TELEPHONE(714)640 1095 wn1TEn'9 DIRtCl DIAL: PAUL L.GALC 61SA M.AITS.TA RUDOLPN C.sMCPARO JULI[M_wQwTER /AR NUMeLR - ROpERT J,KANC MAR.1. ALIN �s1.;72s-,•DD M.D.TAI9GT ROeLaT G.FUN6TEn• (714) 725-4140 aRuCE C.STVARI ALCTA LOUISE ORYANT G DOUGLAS r. "IMAM RONALO^.VAN 15LA RZCM W.KURT TEAGER STEPMEN M.M.NAM AQA RO�Cal J.WHALEN 6ARY A,PEMRC RVON PO{CPT C.w1CH JOHN M_^NTL1,.1 TMOMA*A.P1SIONE J.MICHAEL VAUGHN SCOTT E.Mc CONNLLL CINpY R.HUGHES RAN GALL J.SMCq MAN OEN106 C.HAMINAUG- SOUCE W.FEUCMTCP lARBARA L•7C•G SC- MA J.HUEe6C� Me T.5ALTZMAN KAwLN A.EL0. MICHACL J.0�81NQ cuZ^SET.C.GREEN JON c.OOETZ wuCE D.MA♦ ALAN J.KC 55tl NALO J.HAMwAN ANDRCW P. RIFKIN October 1 , 1990 - JO11N J.5w1GAR-I JR- GARY P. DOwN5 MICHAEL A.Z&OLOCKI JOHN P.1RCL^NL NCILA R.aERNSTCIN MIGMACL J.PCNOERGAST CCLCBTE STAML ORADY PAVID N.MANN CMRI9TOPMER J.KILPATRICK GALL 1.OCHLCSINOEP JOEL H.OUT. PAN^M..CZMOH JUL1C M.COY AK1Ni PARRYL*-GIOAJON DAWN G.HONEYWELL JOHN G.M-r LCNDON OWCN C.LUROW COPF112ENTIAL ATTORNEY/CLIENT PRIVILEGE Huntington Beach Redevelopment Agency Attn: Stephen V. Kohler 2000 Main Street P.O. Box 190 Huntington Beach, CA 92648 Re: Health and Safety Code Section 33413 Dear Mr. Kohler : You have asked our office to describe the provisions of Health and Safety Code Section 33413 and to analyze the- potential remedies in the event that the Agency fails to comply. In this regard, Section 33413 imposes two basic requirements : (a) All dwelling units housing persons and families of low or moderate income which are destroyed or removed from the housing market as part of a redevelopment project are required to be replaced within four years of the destruction or removal . (b) With respect to all new or rehabilitated dwelling units developed within a project area : (1) At least 30% of such units developed by the Agenc_.y must be available at affordable housing costs- to persons and families of low or moderate income, half of which must be available to very low income housholds . • Mr . Stephen Kohler October 1, 1990 . Page Two (2) At least 15% of such dwelling units developed within a project area by private or public entities other than the Agency must available at affordable housing costs for persons and families of low or moderate income, of which 40% must be available to very low income households . There is a distinction intended between subparagraph (1) which imposes a 30% requirement as to all dwelling units developeda redeyplopment age.ncy and subparagraph (2) which imposes a 15% requirement for all other dwelling units developed within a project area. There is, however, no guidance in the statute or any existing case law as to whether agency assisted (as opposed to agency constructed) housing falls into the 30% requirement of subparagraph ( 1) or. the 15% requirement of subparagraph (2) ; however, we have assumed for purposes of this memorandum that unless the Agency actually constructs the dwelling units the 15% requirement of subparagraph (2) applies. The overall effect of Section 33413 is that not only is a one for one replacement of all low and moderate income housing required, but., additionally any private development of residential dwelling units within the project area since the adoption of the redevelopment plan, whether or not assisted by the Agency, must include, in the aggregate, 15% low and moderate income housing, 40% of which must be for very low income households . It should be noted that Section 33413 does not, on its face, impose these requirements with respect to each new or rehabilitated housing development within the project area but rather on a project area wide, aggregated basis . Section 33413 is silent as to the available remedy in the event that a particular redevelopment agency either inadvertantly or intentionally fails to comply. The fact that Section 33413 applies on an aggregate basis rather than a case by case basis makes enforcement even more problematic. If a t citizen or public interest group chooses to attack an agency' s failure to comply with Section 33413 such an individual or group would no doubt seek to enjoin any further development until compliance. With specific reference to the Main Pier Project Area, a plaintiff would no doubt seek to show that , based on all residential dwelling units constructed since adoption of the 1 V J 1 11 1._V V V A. yvy _ r�h Mr . Stephen Kohler ' October 1, 1990 Page Three redevelopment plan, as contrasted to the land remaining within the project area which is available for residential L development, additional residential development should not occur without the imposition of requirements for low and moderate income housing that in the aggregate would ultimately achieve the 15% requirements described above. It is our belief that under the circumstances of an agency failing to comply with Section 33413 a court would either enjoin further development until compliance with Section 33413 or, in the alternative, fashion a remedy that would compel construction of x the required housing before allowing additional development within the project area. A more detailed memorandum on the additional requirements of Section 33413 as well as the housing set aside requirements of the Community Redevelopment Law will follow. If you have any further questions or comments, please feel free to call the undersigned. Very truly yours, STRAD YOCCA, ARLSON & RAUTH Thomas P. C ark, Jr . TPC/lf cc: Art De La Loza 0005m/073 a. ...f. ' APPENDIX C The Planning and Zoning Law role to play in identifying, understanding, and devising solutions to the problem of homelessness. Note: Stats. 1986,Ch. 1383,also reads: SEC.3.The amendments to paragraph(1)of subdivision(c)of Section 65583 of the Uncodifred policy Government Code made by the act adding this section during the 1986 Regular Session of the Legislature shall require an identification of sites for emergency shelters and transi- tional housing by January 1, 1988,or by.the next periodic review of a housing element pursuant to Section 65588 of the Government Code,whichever is later,in order to give local governments adequate time to plan for,and to assist in the development of;housing for homeless persons,if it is determined that there is a need for emergency shelterpursuant to paragraph(6)of subdivision(a)of Section 65583 of the Government Code. 65584.(a)For purposes of subdivision(a)of Section 65583,a locality's share of the regional Regional housing needs housing needs includes that shareof the housing need of persons at all income levels within the area significantly affected by a jurisdiction's general plan.The distribution of regional housing needs shall,based upon available data,take into consideration market demand for housing,employment opportunities,the availability of suitable sites and public facilities, commuting patterns, type and tenure of housing need, the loss of units contained in assisted housing developments, as defined in paragraph (8) of subdivision (a) of Section 65583,that changed to non-low-income use through mortgage prepayment, subsidy contract expirations,or termination of use restrictions,and the housing needs of farmworkers.The distribution shall seek to avoid further impaction of localities with relatively high proportions of lower income households.Based upon data provided by the .Department of Finance,in consultation with each council of government,the Department of Housing and Community Development shall determine the regional share of the.. statewide housintt need at least two years prior to the second revision,and all subsequent revisions as required pursuant to Section 65588. Based upon data provided by the Department***relative to the statewide need for housing,each council of governments - shall determine the existing and projected housir_g.need for its region.Within 30 days following notification of this determination, the Department*** shall ensure that this determination is consistent with the statewide housing need and may revise the determi- nation of the council of governments if necessary to obtain this consistency:Each locality's share shall be determined by the appropriate council of governments consistent with the criteria above with the advice of the department subject to the procedure established pursuant to subdivision(c)at least one year prior to the second revision,and at five-year_ intervals following the second revision pursuant to Section 65588. (b) For areas with no council of governments, the Department *** shall determine housing market areas and define the regional housing need for localities within these areas. Where the department determines that a local government possesses the capability and resources and has agreed to accept the responsibility,with respect to its jurisdiction,for the identification and determination of housing market areas and regional housing needs,the department shall delegate this responsibility to the local governments within these arras. (c)Within 90 days following a determination of a council of governments pursuant to subdivision (a), or the department's determination pursuant to subdivision (b),a local government may revise the determination of its share of the regional housing need in accordance with the considerations set forth in subdivision(a).The revised share shall be based upon available data and accepted planning methodology,and supported by adequate documentation.Within 60 days after the time period for the local government's revision, the council of governments or the department,as the case may be,shall accept the revision or shall indicate,based upon available data and accepted planning methodology,why the revision is inconsistent with the regional housing need.The housing element shall contain an analysis of the factors and circumstances, with all supporting data, justifying the revision.All materials and data used to justify any revision shall be made available upon request by any interested party within seven days upon payment of reasonable costs of reproduction unless the costs are waived due to economic hardship. (d)(1)Except as provided in paragraph(2),any ordinance,policy,or standard of a city, county,or city and county which directly limits,by number,the building permits which may be issued for residential construction, or which limits for a set period of time the 41 APPENDIX D CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To Ray Silver From Ch s P. Spencer, Director Assistant City Administrator Housing & Redevelopment Subject HOUSING STRATEGY — Date August 29, 1991 CDBG FUNDS I had mentioned to you the importance of developing a Housing Strategy and by not doing so, possible jeopardize the City's receiving future CDBG funds. As an introduction as how CDBG funds are effected with development of a Housing Strategy, Title I of the National Affordable Housing Act requires that cities in order to be eligible for CDBG funds must have an approved Comprehensive Housing Affordability Strategy (CHAS). This legislation requires that the CHAS address 14 areas, which HUD has combined into three (3) components for ease of preparation and organization. Collectively, these components are: 1. The affordable housing needs of very—low income, low—income and moderate income families, homeless families and individuals, and others with special needs who require supportive services, and characteristics of the housing market and the existing stock; 2. A five (5) year strategy for housing investment and to produce and operate affordable housing for low—income and moderate income families through private—public partnerships. 3. A one (1) year plan for applying available resources to the needs identified. Perhaps the most persuasive reason for preparing a CHAS is access to CDBG funds. As an entitlement city, Huntington Beach receives annually approximately 1.4 million dollars. Although the City's general funds are not effected by lose of CDBG funds numerous program and social activities targeted to very—low and low income families are dependent on those funds. Also, as being identified in our draft Housing Strategy, we are anticipating use of CDBG funds in order to retain and expand upon the City's very—low income housing stock. The CHAS submittal (October 1991) currently being prepared with assistance from our housing consultant, will incorporate many of the policies and objectives outlined within the City's Housing Strategy. CPS:sar xc: Barbara A. Kaiser, Deputy City Administrator/Economic Development Housing Zelefsky, Director of Planning 0479y (ff 1) ASSOCIATION of REALT0RS® s 8101 Slater Avenue•Huntington Beach,CA 92647•(714)847-6093 •FAX(714)841-3375 �, 7 ...b _� September 9, 1991 r r� arnrn trN p Huntington Beach City Council v- Huntington Beach Planning Commission 2000 Main Street Huntington Beach, CA 92648 Honorable Council Members and Commissioners: As president of the Huntington Beach/Fountain Valley Association of REALTORS®, I want to express our concern with regard to the proposed Affordable Housing Strategy under review this evening. As you know, our Association has a strong interest in the whole issue of housing affordability and many of our members have considerable expertise in this area. Yet, despite our repeated offers to assist the City in the development of a plan to assure the availability of this valuable community resource, we have not been involved in this proposal at all. In fact, this proposal was not even available for us or presumably any other member of the community, until late Thursday, September 5, which is hardly enough time to read the document much less offer constructive suggestions. However, even a cursory review indicates that this proposal is seriously flawed, and we are concerned that a report which, in our opinion, makes assumptions that are clearly incorrect, fails. to include current housing stock when analyzing the need/availability for affordable housing, and defines "goal" and "target numbers" as mandatory when there is absolutely no legislative basis to do so, is now being hurtled +�ALC gl': our legislative process vdlthout uueqil�aL review by either the Council, the Commission and certainly, without adequate public input. Based on our knowledge of this issue, we feel that many of the suggested policies are not feasible and will result in fewer affordable units rather that more and that would be a tragedy for the community. Recently, based on our Association's involvement with this issue, I was honored to be invited to attend a National symposium on Housing sponsored by the National Association of REALTORS@ in Washington, D. C. Other members of our Association have achieved national and state recognition for their expertise and experience on this issue. 113 JAMES M.RIGHEIMER,President•FLORENCE LUBOW BELL,First Vice President LUCILLE HARMON,Second Vice President•JOHN CLOUGHEN,Secretary/Treasurer ,FA„o,. Directors:THOMAS C.VAN TUYL•VICKY BAGLEY•BARRY BUSSIERE•JOE GNAS•PAT PAULK WILL L. WOODS,Executive Vice President •JUDITH A.LEGAN,Vice President/Public Affairs Once again, I affirm our commitment_ to assist in solving this problem. I believe the most positive action that the Council could take this evening would be to direct staff to set up a Task Force made up of representatives of the Planning Commission, City Council, developers, organized real estate, members of the business community, lenders and non-profit providers of shelter opportunities to develop a valid, and feasible, solution to this community problem. To proceed with a temporary plan that is so seriously flawed at this time would have grave ramifications for our community, since as the staff points out on page 7, this "temporary" plan will impact 12,000 housing units in our community. There is so little land left! Let's do it Mhtl Sincerely, - James M. Righeimer President JR/J /Id ` 7"OrY1 zcxir��C you-�,cnr����/�t r���iae�s. 4�c O J r�, O 0 OMES September9, 1991 - �M Peter Green, Mayor Kirk Kirkland >- City Council Planning Commission ^' ' City of Huntington Beach City of Huntington Beach 2000 Main Street 2000 Main Street Huntington Beach, CA 92648 Huntington Beach, CA 92648 Dear Mayor Green and Chairman Kirkland: This letter is written to express our serious concerns with the draft City of Huntington Beach Housing Strategy, September, 1991, which includes an "inclusionary" housing program as part of an "interim" housing strategy to address the City's affordable housing goals. To begin with,we are disappointed that we and the broader development community were not part of the process of establishing the long awaited strategy and even more disappointed that a significant opportunity to truly encourage affordable housing in the City has been missed. Additionally,we have serious concerns regarding the strategy overall, and respectfully urge the City Council and Planning Commission to consider these comments prior to taking any action on the Strategy. Our primary concerns are: 1. The Strategy's approach is negative rather than positive. Punitive quota requirements based on perceived "benefit" (which is addressed below) is a negative approach. The Strategy fails to analyze and recommend positive approaches to provide incentives to the private sector, since the ability of public sector is so limited,to provide affordable housing. The City Housing Element contains 18 policies regarding adequate provision of housing. Only four policies are listed on Page 6 of the Housing Strategy. Missing from the list of "key" policies are those that require a review of all City development standards, ordinances,fees and processing requirements that affectthe cost of housing. While density bonus,second unit, SRO and other ordinances will help encourage private sector development of affordable units, the City's restrictive zoning, development standards and project hearing and approval process all directly impact a developer's ability to construct moderately priced housing. A positive incentive program could be effective in encouraging developers to construct low and moderate income units, while the punitive inclusionary program proposed in the Strategy would be counter productive. 2120 Main St., No. 260, Huntington Beach, CA 92648-2499 (714) 960-4351 FAX (714) 969-3659 2. There is no specific requirement instate code for affordable housing in new market rate developments. The Strategy indicates that there are specific legal requirements based on a legal opinion attached as Appendix B. The opinion contained in Appendix B applies only to requirements for housing constructed in redevelopment project areas, where the 15 percent rule applies. There is no existing state requirement for the City to condition a specific amount of affordable housing units as part of a market rate new development. 3. The requirement of.affordable housing based on a "benefit" conferred by government is not appropriate. It is inappropriate to link benefit, as a result of public action,to a requirement for affordable housing. In the well known Nollan case the court specifically said that the right to build "...cannot remotely be described as a governmental benefit." In summary, we believe the proposed Strategy raises serious concerns regarding review, appropriateness and effectiveness and therefore, should not be proposed for Council adoption. We do, however, recognize the Council's ongoing interest in addressing affordable housing. We believe the Council should utilize its adopted Housing Element policies to encourage the provision of affordable housing and begin by taking an immediate and positive step by considering the Affordable Housing Program submitted on August 1 by Pacific Coast Homes and Urban West Communities for the areas covered by the Holly Seacliff Development Agreement No. 90-1. This program is consistent with current housing policy and is intended to meet a significant portion of the City's goal for new moderate income units through the construction of 500 moderately priced for sale units. This program would achieve approximately one third of the City's goal'in this category. A copy of this program is attached. Approval of our proposed Program could be a catalyst to addressing the City's affordable housing goals. it can be adopted immediately and would be a clear message regarding the City's positive approach to an affordable housing program. Sincerely, C. E. Rice C E R/sd -2- HOLLY SEACLIFF AREA AFFORDABLE HOUSING PROGRAM August 1, 1991 BACKGROUND The City of Huntington Beach Housing Element includes the following policies: • 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 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. • Locate residential uses in proximity to commercial and industrial areas and transportation routes to provide convenient access to employment centers. o 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. The Housing Element also makes reference to the SCAG Regional Housing Needs Assessment (RHNA) which sets five year goals for the production of housing opportunities for all economic segments of the community. The RHNA establishes a goal of producing 1,370 units for households of"moderate" income,or households earning up to$62,640 (120 percent of the 1991 Orange County median income of $52,200). According to City staff, the maximum sales price of a home for a household of moderate income is $186,100. In June 1991, the average sales price for a residential unit in Huntington Beach was $254,000, based on data published by the Huntington Beach/Fountain Valley Association of Realtors. Although the City's Housing Element does not mandate private sector construction of quotas of below market rate housing, City staff has begun recommending a condition on all residential projects requiring developers to construct 20 percent of each project for occupancy by low and moderate income households. In order to assist the City in meeting its goals for the production of affordable housing opportunities, Urban West Communities and Pacific Coast Homes have submitted the following Affordable Housing Program proposal for properties covered by Development Agreement No. 90-1. 1 AFFORDABLE HOUSING PROGRAM 1. The following numbers of units will be provided by developer for sale to moderate income households: a. A total of 150 units will be provided within the Holly Seacliff Specific Plan area within an area or areas designated either Medium Density Residential, Medium High Density Residential, or Mixed Development. Density transfers within the Specific Plan area will be allowed for the construction of such moderate income units as long as the overall number of housing units proposed(3,930) is not exceeded. b. A total of 350 units will be provided upon the site located at the southwest corner of Beach Boulevard and Memphis Avenue (APN 25-170-03 and 04). Development of 350 units at this location will require City approval of entitlements and permits including, but not limited to, an environmental assessment,general plan amendment, zone change, conditional use permit, tentative tract map, and other necessary permits. C. If City approval of all necessary entitlements and permits for a 350-unit project cannot be obtained, the number of units specified in a. above shall be increased from a total of 150 units to a total of 300 units. 2. City agrees to cooperate with Developer to provide necessary incentives for the construction of moderate income.housing. Such incentives include, but are not limited to the following. a. Modification of development standards governing density, square footage, site coverage, setbacks, open space, building height, landscaping, and the number and/or configuration of parking spaces, so long as such modifications do not violate the Uniform Building Code. b. A reduction or waiver of City application, plan check, permit, impact, and/or facilities fees or dedications. C. Other incentive mutually agreeable to City and Developer. 3. Developer shall provide the above affordable housing units mi 2 accordance with the overall development phasing plan contained in Development Agreement No. 90-1 and as financing and City approval of entitlements and permits are available. With respect to the Beach and Memphis site, Developer intends to submit project applications within one year of City approval of this Affordable Housing Program. 4. This program shall apply to the properties covered by Development Agreement No. 90-1. 5. In addition to the units to be provided in Section 1, developer has previously constructed a total of 295 affordable housing units within the City of Huntington Beach. Developer shall be entitled to apply any . unused credits for such units to satisfy any other requirement for the provision of low and moderate income housing on developer's projects or properties not covered by Development Agreement No. 90-1. 6. For the purpose of this Program, the following definitions apply: a. Developer shall mean Urban West Communities, Pacific Coast Homes or any partnership or joint venture in which UWC or PCH is a partner. b. Moderate Income Household shall mean a household whose annual income is at or below one hundred twenty (120) percent of the Orange County Median Income as established by the State of California -Department of Housing and Community Development. C. Project shall mean any proposal by Developer for the construction of five (5) or more residential units. 3 r -JUSTIFICATION We request your support of this voluntary program for the following reasons: 1. The program is consistent with the above stated Housing Element policies. 2. The program satisfies a significant portion (22-36%) of the City's moderate income housing goal of 1,370 units. 3. Continued affordability will be maintained through normal market constraints on resale of moderately priced units without public subsidies and resale disincentives or controls. 4. The program does not require any expenditure of City, State, Federal funds or set-aside monies. . 4 �• 4' CITY OF HUNTINGTON BEACH d" INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To Ray Silver From Gail Hutton Assistant City Administrator City Attorney Subject Affordable Housing Date September 5, 1991 RLS 91-581 BACKGROUND The City Council is considering the adoption of an affordable housing strategy. The proposed strategy contains a revised goal of fewer affordable units than the adopted Housing Element of the General Plan. In light of this proposal, you have asked- for an opinion regarding the state legal requirements in the area of affordable housing. ISSUES AND ANSWERS Question 1: Must the City adopt an affordable housing strategy? Answer: The City is not required by law to adopt an affordable housing "strategy. " As a policy matter, however, its adoption is a good idea •in the sense that it will help implement the Housing Element of the General Plan. Question 2 : What does the state require the City to do concerning affordable housing? Answer: The law requires the City to address certain affordable housing issues as part of the Housing Element of the City' s General Plan. The law also requires the City to incorporate into the Housing Element a program containing a five year schedule of actions to implement the goals of the Housing Element. Question 3 : Is the proposed strategy consistent with the Housing Element of the City' s General Plan? Answer: No, because it purports to adopt a different numerical goal of affordable housing units than the City' s Housing Element of the General Plan calls for. Question 4 : What are the consequences of the City' s failure to act as required by law? Answer: If the City does not comply with the state' s legal requirements, the state might refuse to .re-certify the Housing Element in the future or the Housing Element might be subject to judicial challenge. The City risks facing severe legal consequences if its General Plan is judicially determined to be inadequate. Ray Silver September 5 , 1991 Page 2 DISCUSSION I . General Requirements Concerning Affordable Housing that Must Be Addressed in Housing Element A housing element is one of seven mandatory elements of a city' s general plan. The general plan' s housing element must address certain issues pertaining to affordable housing. These issues include: a. A quantification of the City' s existing and projected housing needs for all income levels . (Cal . Gov' t Code Section 65583(a) (1) ) . b. An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures . (Cal . Gov' t Code Section 65583(a) (4) ) . c. An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, and the cost of construction. (Cal . Gov' t Code Section 65583(a) (5) ) . d. An analysis of existing assisted housing developments that are eligible to change to non-low-income housing uses during the next ten years due to termination of subsidy contract, mortgage prepayment, or expiration of use restrictions . (Cal. Gov' t Code Section 65583(a) (8) ) . e. A program which sets forth a five year schedule of actions the City is undertaking or intends to undertake to implement and achieve the goals and objectives of the housing element. The program must: 1. Identify adequate sites which will be made available through appropriate zoning and development standards and with public services and facilities needed to facilitate and encourage the development of a variety of types of housing for all income levels, including rental housing, factory-built housing, mobile homes, emergency shelters and transitional housing in order to meet the community' s housing goals as identified in California Government Code Section 65583(b) . Ray Silver September 5, 1991 Page 3 2 . Assist in the development of adequate housing to meet the needs of low- and moderate-income households . 3 . Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing. 4 . Conserve and improve the condition of the existing affordable housing stock. 5 . Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, or color. 6 . Preserve for lower income households the assisted housing developments identified pursuant to California Government Code Section 65583(a) (8) . The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified therein, except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance. The program shall include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals . The local government 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. Please note that the proposed "strategy" is not the "program" required by state law. The "program" must be included as a part of the Housing Element itself. The "strategy" is not an official part of the Housing Element, but is a necessary implementation device to achieve the goals of the Housing Element. II . No Requirement to Allocate Funds While it is mandatory that the City' s general plan address the affordable housing issues referenced above, the City is not required to expend local revenues for the construction of housing, housing subsidies, or land acquisition. (Cal . Gov' t Code Section 65589(a) (1) ) . Ray Silver September 5, 1991 Page 4 III . New Housing Construction New housing developments constructed within the coastal zone shall, where feasible, provide housing units for persons and families of low or moderate income. (Cal. Gov ' t Code Section 65590(d) ) . "Feasible" means capable of being accomplished in a successful manner within a reasonable period of time taking into account economic, environmental, social and technological factors . (Cal . Gov' t Code Section 65589 .5(h) (1) ) . If not feasible to do so within the new development, the City may require the developer to provide such housing, if feasible, at another location within the City, either within the coastal zone or within three miles thereof . Incentives such as density bonuses and modification of zoning requirements may be offered by the City in order to assist the provision of such new. housing units . (Cal . Gov' t Code Section 65590 (d) ) . IV. Certification Process At least 90 days prior to the adoption of its housing element, the City must submit the draft element to the California Department of Housing and Community Development. The Department reviews the draft element and reports its findings to the City. If the Department determines that the draft adequately complies with state law, it "certifies" the draft. If the Department finds that the draft does not substantially comply,- the City can either change the draft element or adopt it without changes . (Cal . Gov' t Code Section 65585) . The item at issue is a "strategy, " not a housing element or an amendment thereto. Therefore, it does not need to be submitted to the Department for "certification. " However, we note that the "strategy" references a lower numerical goal of affordable housing units than the number contained in the Housing Element of the General Plan. We are concerned that if the City adopts a "goal" number lower than as set forth in the Housing Element, it may lead to problems when the City seeks re-certification of the Housing Element in the future or may subject the Housing Element to judicial challenge. Thus, we recommend that the lower number of units be referenced in the strategy as an "estimate of actual units" rather than as a "goal" or "revised goal . " A revision of the goal would require amending the Housing Element. V. Consequences for Failure to Act as Required by Law If the Department notifies the City that its draft housing element does not substantially comply with state law, the City may still adopt the draft housing element. But the City must include written findings in its resolution of adoption which explain the reasons the City Council believes that the draft Ray Silver September 5, 1991 Page 5 element substantially complies with state law despite the Department ' s non-certification. (Cal_ . Gov' t Code Section 65585(f) (2) ) . The consequences of having a non-certified housing element are potentially severe. If one element of the General Plan is inadequate, the entire General Plan is technically void. If a court finds that an action of a city which is required to be consistent with its general plan does not comply with its housing element, the city must bring its action into compliance within 60 days . (Cal. Gov' t Code Section 65587(c) ) . In its order or judgment, the court may include such draconian measures as the suspension of the city' s authority to issue building permits, grant zone changes or variances, or grant subdivision map approvals. (Cal . Gov' t Code Section 65755(a) ) . RECOMMENDATION While the adoption of the proposed "strategy" is not required by state law, it is a proper policy, decision in order to- help implement the Housing- Element of the General Plan. The strategy should be amended to numerically mirror or approximate the Housing Element of the General Plan to avoid adopting a goal that is inconsistent with goals provided in the Housing Element. Gail Hutton City Attorney cc: Michael Uberuaga, City Administrator Mayor and Members of the City Council Mike Adams, Director of Community Development Paul D'Alessandro, Deputy City Attorney Arthur- Folger, Deputy City Attorney Barbara Kaiser, . Directo-r of Economic Development Sarah Lazarus, Deputy City Attorney Pat Spencer, Director of Housing & Redevelopment Howard Zelefsky, Planning Director �30 � CITY OF HUNTINGTON BEACH COUNCIL - ADMINISTRATOR COMMUNICATION �'e���✓ HUNTINGTON BEACH ' To Honorable Mayor and City From Michael T. Uberua9 , ! ,� Council Members City Administrator �``'� v Subject. AFFORDABLE.HOUSING Date February 25, 1991 . STATUS There exists certain statutory requirements dealing with housing, more specifically, affordable housing requirements in conjunction with residential developments taking place within redevelopment project areas. For example, within the Main-Pier Redevelopment Project Area, fifteen percent (15%) of residential units constructed to date were to have been made available to persons and families of low and moderate income levels (see Attachment 1). The Redevelopment Agency is further obligated to replace those qualifying (low, low-moderate) residential units removed or destroyed in conjunction with projects currently under construction or completed (see Attachment 2). In development of a Housing Strategy and Implementation Plan, a task will be to identify those residential units and types to be replaced on a one-for-one basis within a mandatory four-year period and how and where the 15% requirement for low-moderate income housing units is best implemented. Attachment 2 identifies residential projects (units) that have been completed within the Main-Pier Project Area that have not included the mandatory 15% affordable units, together with proposed projects currently in various phases of Agency negotiations that may or may not include affordable housing opportunities. The proposed Housing Strategy and Implementation Plan will identify various means the Redevelopment Agency has at its disposal in assisting development of affordable housing opportunities within the city. Attachment 3 is a copy of the RFQ for consulting services for implementation guidelines of a housing strategy. The document will serve as a blueprint for the development of affordable housing in Huntington Beach. MTU/CPS:ls 8531r Attachment #1 Typical Income Ranges (1) for Low and Moderate Income Families Family Very Low Lower Median 120% Size Income Income Income Above Median 1 17,200 25,000 34,400 41,280 2 19,650 28,550 39,300 47,160 3 22,100 32,150 44,200 53,040 4 24,550 35,700 49,100 58,920 5 26,500 37,950 53,000 63,600 (1) As determined by the U. S. Department of Housing and Urban Development. 0036y ATTACHMENT 2 MAIN-PIER REDEVELOPMENT PROJECT AREA COMPLETED PROJECTS 15% Low-Med. Residential Affordable Removed to Location Units Requirement Provided be Replaced The Breakers 340 51 68 -0- Town Square 89 13 -0- 3 Bayshore 159 24 -0- 0- Villas Del Mar 64 10 -0- -0- Pier Colony 130 20 -0- 12 2nd Block Facade -0- -0- -0- 9 2nd Block Pkg Struc. -0- 0- -0- 23 TOTALS: 782 118 68 47 PROPOSED PROJECTS Waterfront 639 96 240 Phase II 100± 15± -0- Third Block West 68 10 33 3 TOTALS: 807± 121 33 243 GRAND TOTAL 322 in 29-Q TOTAL PROJECT AREA DEFICIT TO DATE 13$ 2A LA 3 0 CITY OF HUNTINGTON BEACH FKjCOUNCIL ADMINISTRATOR COMMUNICATION CA 91-18 HUNTINGTON BEACH To Mayor & City Council From Michael T. UberuagQ Planning Commission Members City Administrator Subject Economic Development \. Date April 29, 1991 Strategies for Affordable Housing As part of the discussion on affordable housing scheduled for April 29, 1991, with the City Council and Planning Commission Members, Economic Development staff will present several issues including the following: 1) Reasons for an Affordable Housing Strategy 2) Goals of Affordable Housing Strategies 3) List of Consulting Firms Responding to RFP 4) Affordable Housing Task Force 5) Methods/Programs to Implement Affordable Housing 6) Current Affordable Housing Activities Attached is an outline of the presentation to be given at the meeting. MTUBAK:ls Attachment 8908r t: �� } .,r s CITY COUNCIL PRESENTATION AFFORDABLE HOUSING APRIL 29, 1991 Overheads: 1) Reasons for an Affordable Housing Strategy . 2) Goals of an Affordable Housing Strategy 3) List of Consulting Firms Responding to RFP 4) Affordable Housing Task Force 5) Methods/Programs to Implement Affordable Housing 6) Current Affordable Housing Activities REASONS FOR AN AFFORDABLE HOUSING STRATEGY • To provide housing opportunities for all income groups within the City of Huntington Beach • To create jobs — housing balance to mitigate environmental concerns e To achieve compliance with the Housing Element of the General Plan, as legally required • To achieve compliance with Redevelopment Agency legal requirements (20% set aside funding, replacement housing and inclusionary housing) a To achieve compliance with the Cranston—Gonzales National Affordable Housing Act of 1990 to submit to HUD a Comprehensive Housing Affordability Strategy I GOALS OF AN AFFORDABLE HOUSING STRATEGY s To summarize and update current housing conditions in Huntington Beach and future needs • To evaluate alternative methods/programs to implement affordable housing • To recommend financing mechanisms including use of Agency resources and other governmental resources e To determine the role of private developers and public—private partnerships in developing affordable housing REQUEST FOR QUALIFICATIONS RESPONDENTS DAVID PAUL ROSEN & ASSOCIATES URBAN FUTURESMUNTLEY Oakland, California MANAGEMENT SERVICES Westminster, California i I E KAREN PALLY ASSOCIATES TARANTELLO & ASSOCIATES Santa Monica, California Newport Beach, California PMW ASSOCIATES CHARLES KOBER & ASSOCIATES San Clemente, California Irvine, California CAINE, GRESSEL, MIDGLEY, SLATER THE DAVIS GROUP San Francisco, California Newport Beach, California COTTON/BELAND ASSOCIATES FRED CONSULTING ASSOCIATES Pasadena, California Novato, California L.D. KING, INC. TIERRA CONCEPTS Ontario, California Los Angeles, California CASTANEDA & ASSOCIATES Tustin, California AFFORDABLE HOUSING TASK FORCE Recommended Membership: City Council Planning Commission Chamber of Commerce Board of Realtors Developers Non—Profit Housing Organizations Citizens Advisory Bord Lenders Community Leaders City Staff Legal Counsel Consultant METHODS/PROGRAMS TO IMPLEMENT AFFORDABLE HOUSING • State Mortgage Bond Allocations for single-family bond projects for below-market-rate financing targeted to first-time buyers • Second trust deeds at below-market-rate financing used as shared equity program • Encourage non-profit developers to construct/rehabilitate projects for low-income households • Orange County Housing Authority allocation of Section 8 Housing Assistance/Voucher Program • Tax exempt mortgage financing for new multi-family housing • Adoption of an ordinance to mandate affordable housing in all new construction projects and conversions • Syndications using federal and state low-income housing tax credits • Acquisition of existing housing to be restricted to affordable housing • Rehabilitation of single-family and multi-family units • Agency.land banking for future affordable housing development • Community lending partnerships with financial institutions under the Community Reinvestment Act (CRA) METHODS/PROGRAMS TO IMPLEMENT AFFORDABLE HOUSING (Continued) • In lieu fees • Incentives such as density bonus and revised development standards to reduce housing costs • SRO ordinance to encourage development of SRO units i Y 1 s CURRENT AFFORDABLE HOUSING ACTIVITIES • Third Block West - Newcomb-Tillotson new construction (33 units - 1st and 2nd Trust Deed assistance) • Seaview Village - Bijan Sassounian new construction (19 units - 1st and 2nd Trust Deed assistance) • Breakers Apartments -'increase number of affordable units (340 available - 85 affordable currently) • Downtown proposal - develop 79 affordable efficiency units, new construction I • Warner Avenue Proposal - new construction • Five Points Senior Villas - new construction of senior housing • Condominium conversion - potential conversion of rental project to affordable ownership housing • Non-Profit Organizations - Orange County Community Housing Corporation; Shelter for the Homeless; and Habitat for Humanity • Creation of an Huntington Beach non-profit housing development corporation CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH To City Council From Department of Planning Commission Community Development Subject HOUSING ELEMENT REVIEW/ Date April 22, 1991 AFFORDABLE HOUSING Last year the City Council adopted the Housing Element in compliance with State law. The Housing Element contains goals and policies which are ultimately implemented by City staff . The Element also contains qualifiable objectives to meet projected housing needs. It is this provision that is often misunderstood by the public. This is especially true with respect to Affordable Housing requirements . Adding to this confusion are the legal obligations the Redevelopment Agency has to provide Affordable Housing. Understanding the relationship between the Housing Element, Redevelopment Law and Affordable Housing requirements is the goal of this study session. The staff has prepared a packet of information to help facilitate the discussion. Each attachment is identified below and forms an outline for the study session: 1. History of Relevant Legislation. A. Current Legislation B. Pending Legislation C. Redevelopment Housing Requirements D. Key Cases and Attorney General Opinions 2 . State' s Role in the Housing Element Process . 3 . Statewide Basic New Construction Needs 1989-1994 . 4 . Housing Element Goals and Redevelopment Law Requirements/ How Many Units Do We Need in the Next Five Years? 5 . What is Affordable Housing in Huntington Beach. 6 . Housing Costs and Incomes, 1970-1989 7. Future Residential Projects . 8. Clarification of Direction. 9 . Proposed Solutions . 10 . Economic Development Strategy. 31 (9471d) 1A. CURRENT LEGISLATION EGISLATION AB 4566 by Assemblyman Polance (Chapter 1565) requires a redevelopment agency to commit a specified portion of its Low and Moderate Income Housing Fund for affordable housing purposes within five years, or the funds will transfer to another local entity for the same purpose. AB 4567 by Assemblyman Ferguson (Chapter 1564) allows a redevelopment agency to undertake new activities in order to promote the development and preservation of affordable housing . SB 2117 by Senator Leroy Greene (Chapter 1610) authorizes cities, counties, redevelopment agencies, and housing authorities to issue tax-exempt revenue bonds to make loans to nonprofit organizations for the acquisition of multifamily rental housing. SB 2709 by -Senator Alquist (Chapter 1296) provides an exemption from property tax for property which is used exclusively for rental housing for low income households, provided that the property is leased and operated for a minimum of 35 years . 1989 Significant Legislation SB 726 by Senator Leroy Greene (Chapter 1347) and SB 1290 by Senator Seymour (Chapter 1156) , sponsored by Governor Deukmejian, provide permanent authority for the use of State low income rental housing tax credits, contingent upon continuation of the federal low income housing tax credit . SB 1282 by Senator Seymour (Chapter 1451) requires, by January 1, 1992, every local housing element to include analyses of subsidized low income housing eligible to convert to non-low income housing uses, and to include programs to address such potential loss of affordable housing during the period of their five-year plans . 1990 Significant Legislation AB 2932 by Assemblywoman Eastin (Chapter 843) requires HCD to prepare a guidebook for use by public and private entities in the planning and development of housing to meet the need created by employment growth. In addition, the bill requires the Assembly Office of Research to complete a later study on the effectiveness of the guidebook. SB 1822 by Senator Bergeson (chapter 1608) eliminates the sunset dates of various reporting requirements applicable to redevelopment agencies . These reports are the only central source of information concerning the housing activities of redevelopment agencies available. SB 2011 by Senator Leroy Greene (Chapter 1439) prohibits a locality from disapproving a low or moderate income housing development except under specified circumstances. The bill prohibits conditioning project approval in a manner which renders the project infeasible for development as an affordable housing project unless specified findings are made. SB 2012 by Senator Leroy Greene (Chapter 1440) requires units reserved for occupancy by persons of low income, and financed by the proceeds of bonds issued on or after january 1, 1991, to remain . occupied by, or made available to, those persons for the qualified project period. Occupancy provisions are also specified for the period following the expiration or termination of the qualified project period. SB 2274 by Senator Bergeson (Chapter 1441) strengthen the regional housing needs allocation process and housing element law by, among other things : requiring Councils of Government to provide specified information to localities regarding the determination of their regional share; authorizing the COG or HCD to modify its earlier determination; and requiring HCD to review adopted housing elements . The bill also requires localities to report annually the progress they are making in meeting their regional share. SB 2559 by Senator Leroy Greene (Chapter 1304) requires the California Transportation Commission to develop and implement a demonstration program to test the effectiveness of increasing densities of residential development in close proximity to mass transit guideway stations to increase the benefit from public investment in mass transit. 1B. PENDING LEGISLATION SB 1019 by Assemblyman Greene would alter a number of housing element requirements and revisit a number of issues which were presumably resolved in last year' s SB 2274 . The bill would establish a "rebuttable presumption" of invalidity where the Department of Housing and Community Development has determined that a jurisdiction' s housing element not , to be in substantial compliance with housing element requirements . The bill would also restrict the use of quantified objectives to the housing need numbers developed by COGs or HCD. SB 1019 would also require that in addition to providing to HCD the annual monitoring information of housing element implementation that is currently provided by planning agencies to legislative bodies, all local governments must quantify the number of units "produced" . Another added requirement would be the specification of governmental constraints which would need to be addressed under Government Code Section 65883(c) (3) . The intent of 65883(c) (3) is to encourage .local government to be both critical and creative in determining the specific governmental constraints are which hamper our ability to maintain, improve and develop housing. AB 315 by Assemblyman Friedman is sponsored by a broad coalition of low-income housing organizations, and would require, effective January 1, 1992, all redevelopment agencies to allocate not less than 50% of their annual tax increment revenue to increasing, improving or preserving the supply of low- and moderate-income housing. There would be only one category of exception: agencies in cities where the regional fair share affordable housing allocation has already been met. In such a case, the new set-aside would be 40% rather than 50%.. AB 315 applies to all current project areas and all project areas adopted after the effective date of the bill. In addition, this bill also repeals entirely the three current law findings which presently allow an agency to set-aside less than 20% for housing under certain circumstances . The four leading growth bills in the legislature this year are as follows: • Brown' s AB 3, a follow-up to last year ' s AB 4242 . Like last year ' s bill, AB 3 would combine regional air quality, water quality, transportation, housing, and other agencies into a single regional entity with wide-ranging authority over growth and development. Under Brown' s Bill, all members of these regional boards would be directly elected, so that each agency would be governed, in effect, by a regional growth legislature. Last year, Brown' s bill did not get out of committee, partly because he chose not to push hard. According to Todd Kaufman, a consultant with the Assembly Office of Research, this year' s Brown bill contains two important changes from last year' s version. First, it would create a state Growth Management Commission, charged with making sure that the state' s own plans are consistent and that regional plans are consistent with the state plan. Second, AB 3 would provide a way for regions to create their own regional framework, rather than follow the Brown Bill ' s proscriptions, so long as regional goals are achieved. • Begenson' s SB 434, which is somewhat more agressive than her previous growth bills . Under SB 434, local governments would be given incentives to create regional infrastructure finance authorities. The creation of such authorities would be voluntary, but if they are created they would wield tremendous power. The regional authorities would have the power to seek voter approval for new property transfer taxes that would be earmarked for regional infrastructure. However, they would be required to designate "development boundaries" - another term for an "urban growth boundary" . Local governments would be required to approve development projects inside the boundaries if they conform with local plans . The Bergenson bill also includes several important planning provisions that would be in place whether or not regional authorities are created. All local governments would have to update their general plans every five years, and the Governor ' s Office of Planning and Research would be required to review local general plans if any person ask, but that persons would be required to bear half the cost of review. If OPR declares a local general plan valid and consistent with state plans, then all state agencies would be subject to that local plan' s requirements. • Farr' s AB 76, a successor to his AB 4235 of last year, would split the Governor ' s Office of Planning and Research in two. The Governor ' s Office of Research would work on issues at the pleasure of the governor, while the State Planning Agency would prepare a comprehensive state plan that state agencies must abide by. The bill would also require that regional plans be integrated with the state plan, and provide for consistency between local and regional plans . AB 4235 was vetoed by ex-Governor George Deukmejian. • Though he has not introduced a bill yet, Presley seems likely to return with a bill similar to last years SB 1332, which would have encouraged the creation of sub-regional planning boards that could work on ironing out planning problems between neighboring jurisdictions . Last year, Brown' s staffers indicated that they liked the ideas contained in SB 1332, which, they said, could provide an optional "bottons-up" alternative to the top-down decision-making proposed in AB-3 . 1C. REDEVELOPMENT HOUSING REQUIREMENTS STRADLING, YOCCA, CARLSON & RAUTH A PROFESSIONAL CORPORATION FRITZ R.STRADLING LAWRENCE B.COHN ATTORNEYS AT LAW 10-1 E.B?ECKENR,7GE NICK E.YOCCA WARREN B.OWEN C.CRAIG CARLSON DAMES D.CLARK 660 NEWPORT CENTER DRIVE.SUITE 1600 °'E NA STONE WI L or_o'Nscl_ LI4M R.gAUTH III STERHEN M.LACOUNT POST OFFICE BOX 7660 K.C.SCHAAF HARLEY L.BJELL AND RICHARD C.GOODMAN STEPHEN T. FREEMAN % NEw PO RT BEACH,CALIFORNIA 9 2 6 60-6441 J N J.MURPHY PERRY J.TARNOFSKY THOMAS P.CLARK,JR. ROBERT A.WILSON TELEPHONE (714) 725-4000 BEN A.FRYOMAN CHERYL A. DOW 0 AV10 R.McEWEN NICHOLAS J.YOCCA TELEPHONE (714) 640-7035 ___ PAUL L.GALE LISA M.KITSUTA +- _R'S 7'RECT DIAL: RUDOLPH C.SHEPARD JULIE M,PORTER FAX NUMBER ROBERT J. KANE MARK T, PALIN �7 ^� M,D.TALBOT ROBERT C.FUNSTEN '.714)725-a100 ( / 1 4 ) /2 5-4 14 0 BRUCE C.STUART ALETA LOUISE BRYANT DOUGLAS F. HIGHAM RONALD A.VAN BLARCOM _ KURT YEAGER STEPHEN M. MCNAMARA ROBERT J.WHALEN GARY A.PEMBERTON ROBERT E. RICH JOHN M.ANTOCI THOMAS A.PISTON J.MIC-AEL VAUGHN SCOTT E..M=CONNELL CI TIDY ?.HUG-DES - RANDALL J.SH ERMAN DENISE - ?BAUGH BRUCE W. FEUC---EP BARS'7A L.ZEID MARK J.HUEBSCH ERIC T. SALTZ—N KAREN A.ELLIS -CHAEL J. PJBINO ELIZABETH C.GREEN JON E. 3OE7Z BRUCE O.MAY ALAN ESSEL /'� DONALD J.HAMMAN ANDREY; P. RI--KIN Oc t o l)_t_ 1 , 1990 JOHN J.SWIGART,JR. GARY P. DO-5 _ MIC'^A EL A.ZABLOCKI JOHN ;.IRELANO - -- NEILA R. BERNSTEIN MICHAEL J. RENDE?OAST CELESTE STAHL BRAG" DAVID H.MAN'N � C HRISTOPHER J.KILPA-RICK GALE 1.SCHLESINGER JOEL H.GUTH DANA M..KEZ' OH _ JULIE MCCOY AKINS DARRYL S.GIBSON DAWN C.HONEYWELL JOHN G.M,CLENDON \^Y ow EN B.LUBOW n y Huntington Beach Redevelopment Agency Attn : Stephen V. Kohler 2000 Main Street P .O. Box 190 Huntington Beach, CA 92043 Re : Health and Safety Code Sect;-i.on_ 33413 - Dear Mr . Kohler : You have asked our office to describe the provisionsrof Health and Safety Code Section 33413 and to analyze the potential remedies in the event that the Agency fails to cc:nply. In this regard, Section 33413 imposes two basic requirements : (a) All dwelling units housing persons and families of le:a or moderate income which are destroyed or removed from the housing market as part of a redevelopment project are required to be replaced o:ithin four years of the destruction or removal . (b) With respect to all ne!:� or rehabilitated dwelling units developed within ai_.projf ct__ are_a : ( 1) At least 30% of s>_:ch units developed by the Agency must be available at af-fordable housing costs to persons and fami1iE::s of low or moderate income, half of which must be available to very low income housholds . Mr . Stephen Kohler October 1, 1990 Page Two (2) At least 15% of such dwelling units developed within a project area by private or public entities other than the Agency must available at affordable housing costs for persons and families of low or moderate income, of which 40% must be available to very low income households . There is a distinction intended between subparagraph (1) which imposes a 30% requirement as to all dwelling units developed by a redevelopment agency. and subparagraph (2) which imposes a 15% requirement for all other dwelling units developed within a project area : There is , however, no guidance in the statute or any existing case law as to whether agency assisted (as opposed to agency constructed) housing falls into the 30% requirement of subparagraph (1) or the 15% requirement of subparagraph (2) ; however, we have assumed for purposes of this memorandum that unless the Agency actually constructs the dwelling units the 15% requirement of subparagraph (2) applies . The overall effect of Section 33413 is that not only is a one for one replacement of all .low and moderate income housing required, but, additionally any private development of residential dwelling units within the project area since the adoption of the redevelopment plan, whether or not assisted by _ the Agency, must include, in the aggregate, 15% low and moderate income housing, 40% of which must be for very low income households . It should be noted that Section 33413 does not, on its face, impose these requirements with respect to each new or rehabilitated housing development within the project area but rather on a project area wide, aggregated basis . Section 33413 is silent as to the available remedy in the event that a particular redevelopment agency either inadvertantly or intentionally fails to comply. The fact that Section 33413 applies on an aggregate basis rather than a case by case basis makes enforcement even more problematic. If a citizen or public interest group chooses to attack an agency' s failure to comply with Section 33413 such an individual or group would no doubt seek to enjoin any further development until compliance . With specific reference to the Main Pier Project Area, a plaintiff would no doubt seek to show that , based on all residential dwelling units constructed since adoption of the :.w Mr. Stephen Kohler October 1, 1990 Page Three redevelopment plan, as contrasted to the land remaining within the project area which is available for residential development, additional residential development should not occur without the imposition of requirements for low and moderate income housing that in the aggregate would ultimately achieve the 15% requirements described above. It is our belief that under the circumstances of an agency failing to comply with Section 33413 a court would either enjoin further development until compliance with Section 33413 or, in the alternative, fashion a remedy that would compel construction of the required housing before allowing additional development within the project area . A more detailed memorandum on the additional requirements of Section 33413 as well as the housing set aside requirements of the Community Redevelopment Law will follow. If you have any further questions or comments , please feel free to call the undersigned . Very truly yours, STRAD YOCCA, ARLSON & RAUTH Thomas P. C ark, Jr . .TPC/lf cc: Art De La Loza 0005m/073 1D. KEY CASES AND ATTORNEY GENERAL OPINIONS CASE SUW ARIES AND OPINIONS BUENA VISTA GARDEN APARTMENTS ASSOCIATION V. CITY OF SAN DIEGO PLANNING DEPARTMENT 175 Cal.App.3d 289 (California Court of Appeal, 1985) The Facts: The 56-acre Buena Vista Gardens Apartments complex represented approximately 34 percent of the available rental housing in the San Diego comnuni.ty of Clairemont Mesa. The majority of tenants were retired and of low or moderate income. At the request of Woodcrest Development, Inc. and Prudent Buena Vista Properties, the San Diego City Council conditionally approved a planned residential development permit allowing: (1) the demolition of 1,023 Buena Vista apartments and (2) the replacement of the units with 2,287 condominiums over a ten-year period. The Buena Vista Gardens Apartments Association and the Housing Coalition of Greater San Diego (together Association) sought a writ of mandate to set aside the city's approval. Association claimed that San Diego lacked the authority to approve the development permit because certain provisions of the city 's housing element failed to comply with the specific requirements of the California Government Code. Association also contended that the city's findings for approving the permit were not supported by the evidence. Sari Diego countered Association's challenges to its housing element by maintaining that the court's standard of review for a housing element was found in Bownds v. City of Glendale (1980 ) 113 Cal.App.3d 875. The Bownds court stated that , "Absent a complete failure or at least substantial failure on the part of a local governmental agency to adopt a plan which approximates the Legislature's expressed desires, the courts are ill-equipped to determine whether the language used in a local plan is 'adequate' to achieve the broad general goals of the Legislature." Furthermore, the city claimed that the housing element requirements under Government Code Section 65583, subdivision (c) interfered with San Diego' s charter city status. The city maintained that the statute wrongfully required San Diego to use its legislative and administrative authority to accomplish the state's housing goal. The Superior Court of San Diego County decided in favor of the city and Association appealed. The Holding: The California Court of Appeal affirmed in part ; and reversed in part, it held as follows: (1) With one exception, all the challenged provisions of San Diego's housing element complied with the California Government Code. - The exception was that San Diego's housing element lacked necessary programs for conserving existing affordable housing opportunities and, therefore, did not substantially comply with Government Code Section 65583 (c) (4) . Consequently, the Court granted a writ of mandate directing the lower- court to refuse approval of the development permit until San Diego's housing element was brought into compliance as specified. CASE SUMMARIES AND OPINIONS (2) In reviewing and deciding upon individual aspects of San Diego's element, the Court disagreed with the city as to the adequacy of the standard of review specified in Bownds. The court noted that Bownds had been decided before the Legislature enacted detailed housing element requirements. Furthermore, the Court pointed out that the Legislature intended that the term "substantially complies" be given the interpretation expressed by the court in Camp v. Board of Supervisors (1981 ) 123 Cal.App.3d 334. Consequently, ". . . [T]he Bownds decision no longer accurately reflects the state of the legislatively mandated housing element nor its standard of review. The standard of review is not limited to whether there is a 'complete ' or 'substantial ' failure of a city to adopt a plan which 'approximates the Legislature's expressed desires ' (Bownds v. City of Glendale, supra, 113 Cal .App. 3d 875, 884) but whetter there is 'actual compliance' (Camp v. Board of Supervisors, supra, 123 Cal .App.3d 334, 348 ) with specified requirements. Bownds retains validity to the extent it prohibits a court from examining the 'merits' of an element." (3 ) The Court observed that both the Legislature and the judiciary have found housing to be a matter of statewide concern. The Court pointed out that, " . . .if a matter is of state-wide concern, then charter cities [such as San Diego] must yield to the applicable general state laws regardless of the provisions of its [sic] charter." Consequently, the city inappropriately contended that Government Code Section 65583 subdivision (c) was inapplicable to San Diego. (4) Finally, except with regard to the lack of compliance noted above, the Court found that San Diego's findings for permit approval were adequately supported by the evidence. ( iCASE SUMMARIES AND OPINIONS VOL. 56 OPINIONS OF TIC ATTORNEY.GENERAL, p. 404 (September 26, 1973) Subject: Adoption of Zoning Ordinances and Consistency with the General i Plan requested by: County Counsel, County of Nevada Questions: (1 ) Does Government Code Section 65860 require that Nevada County bring its zoning ordinances into conformity with its general plan by January 1, 104? (2 ) If it is mandatory that Nevada County's zoning ordinances be consistent with its general plan by January 1, 1974, what are the penalties, if any, for the County's failure to comply by that date? I (3 ) Are environmental impact .reports (EIRs) required for each concise zoning ordinance presently being processed under the County Zoning Enabling Ordinance? (4) Are environmental impact reports required for rezoning? Conclusions: (1) Section 65860 subdivision (a) Government Code requires .that by January 1, 1974, the zoning ordinances of Nevada County be consistent with the adopted general plan. (2) Section. 65860 subdivision (b)- Government Code grants standing to residents or property owners to bring litigation to compel compliance with Section 65860 subdivision (a) of the Government Code. Analysis of . the relief the courts may grant under this section will be forthcoming in another pending formal opinion to be issued in the near future. (3) Pursuant to Public Resources Code Sections 21080 subdivision (a) and 21151, the enactment and amendment of zoning ordinances must be preceded by preparation of an environmental impact_ report if the proposed ordinance may have a significant effect on the environment This conclusion applies to zoning ordinances which may have been. adopted during the moratorium period of December 5, 1972, to April 5, 1973.. (4) Rezoning is merely a phrase used to connote the amendment or enactment of different zoning regulations for particular areas. As such, proposed rezoning does require an environmental impact report pursuant to Public Resources Code Sections 21080 subdivision (a) and 21151 if the proposed enactment of amendment may have a significant effect on the environment. 2. STATES ROLE IN THE HOUSING ELEMENT PROCESS STALE Policy 1: Encourage rental and ownership housing development which adequately meets local and regional needs. Background State law requires all localities to submit plans for future housing development in their communities to satisfy their needs as well as their share of regional housing needs. These plans, called housing elements, are a mandatory part of each community' s General Plan. They must contain an examination and analysis of existing and projected housing needs; a statement of goals, policies, quantified objectives; and scheduled programs for the preservation, improvement, and development of housing. The program portion of the housing element must address six statutory requirements . They are as follows : • Promote adequate sites to facilitate and encourage the development of housing for all income levels . • Assist in adequate housing development for low and moderate income households. • Remove, where possible and appropriate, governmental constraints to housing maintenance, improvement, and development. • Conserve and improve existing affordable housing. • Preserve existing publicly assisted affordable housing which may become eligible to convert to non-low income uses . • Promote equal housing opportunities for all persons . HCD is statutorily mandated to review and comment on housing element drafts and amendments within specified time frames . 3. STATEWIDE BASIC NEW CONSTRUCTION NEEDS 1989-1994 NEW CONSTRUCTION NEED Between January 1989 and July 1995, an average of at least 210, 000 units need to be built each year to meet the projected housing need in California. This new construction need represents the number of units needed to meet projected growth in the number of households in California, to provide a reasonable vacancy rate, and to account for housing units which are anticipated to be removed as a part of the normal functioning of the housing market. These "basic new construction needs" do not take into account condition, price, size, or other attributes of the housing stock. The estimated construction need is based on California Department of Finance population and household projections published in 1986 and 1989 . The projections include an average net immigration of 260, 000 persons per year at the beginning of the period. California ' s net immigration has been subject to significant year-to-year changes . If net immigration is higher, or lower, than the projected figure, new construction need will be higher, or lower, also. Between 1985 and 1989, California ' s population has been growing by an average of 175,000 persons per year more than projected by DOF. Higher than projected net immigration accounts for most of this additional growth. If in the next few years California ' s population growth continues to exceed projections by this much per year, California ' s annual construction needs will be at least 65, 000 higher than projected - about 275,000 per year rather than 210, 000 . Tables contain basic new construction need estimates by county and metropolitan area through July 1995 . i BASIC NEW CONSTRUCTION NEED: 1989 TO 1995 Total New Units Average New Units Constituent Needed Needed Metropolitan Area Counties 1989 to 1995 1989 to 1995 Anaheim-Santa Ana Orange 119,200 18,300 Bakersfield Kern 35,700 5,500 Chico Butte 1 1 ,300 1 ,700 Fresno Fresno 22,700 3,500 Los Angeles-Long Beach Los Angeles 206,300 31 ,700 Merced Merced 1 1 ,800 1 ,800 Modesto Stanislaus 17,500 2,700 Oakland Alameda 42,400 6,500 Contra Costs 39,400 6,100 Oxnard-Ventura Ventura 42,900 6 ,600 Redding Shasta 9,500 1 ,500 Riverside-San Bernardino Riverside 78, 100 12,000 San Bernardino 99, 100 15,200 Sacramento El Dorado 1 1 ,300 1 ,700 Placer 13,400 2 ,1 00 Sacramento 55,800 8,600 Yob 7 ,300 1 ,100 Salinas-Seaside-Monterey Monterey 20,800 3 ,200 San Diego San Diego 143,500 22,100 San Francisco Marin 9,000 1 ,400 San Francisco 25,800 4 ,000 San Mateo 17,200 2,600 San Jose Santa Clara 77,500 1 1 ,9 0 0 Santa Barbara-Santa Maria- Lompoc Santa. Barbara 20,700 3,200 Santa Cruz Santa Cruz 15,900 2 ,400 Santa Rosa-Petaluma Sonoma 25,300 3 ,900 Stockton San Joaquin 30,200 4 ,600 Vallejo-Fairfield-Napa Napa 5,400 800 Solano 24 ,600 3 ,800 Visalia-Tulare-Porterville Tulare 18,400 2,800 Yuba City Sutter 2,900 400 Yuba 11400 200 Metropolitan Total 1 ,262,300 193,900 _ 1 i I BASIC NEW CONSTRUCTION NEED: 1989 TO 1995 Total New Units Average New Units Needed Needed Nonmetropolitan County 1989 to 1995 1989 to 1995 - Alpine 40 10 Amador 2,240 350 Calaveras 4,070 630 Colusa 1 ,200 1 9 0 Del Norte 460 70 Glenn 1 ,270 2 0 0 Humboldt 3,570 550 Imperial 5,840 900 Inyo 120 20 Kings 7,400 1 ,1 40 Lake 10,240 1 ,580 Lassen 1 ,070 1 7 0 Madera 6,930 1 ,070 Mariposa 1 ,220 190 Mendocino 4,450 690 Modoc 580 90 Mono 0 0 Nevada 9,930 1 ,530 Plumas 1 ,330 210 San Benito 3,250 500 San Luis Obispo 27,020 4160 Sierra 460 7 0 Siskiyou 660 100 Tehama 3,150 490 Trinity 1 ,430 220 Tuolumne 6,390 980 Nonmetropolitan Total 104,320 16,110 Metropolitan Total 1 ,262,300 1 93,900 State Total 1 ,366,600 210,000 4. HOUSING ELEMENT GOALS AND REDEVELOPMENT LAW REQUIREMENTS/ HOW MANY UNITS DO WE NEED IN THE NEXT FIVE YEARS Total Units Needed: 1989-1994 - 6228 Units (Housing Element) 3618 Units should be between 0 - 120% Median Income k.. See Attachment No. 6 for breakdown by income category. Redevelopment Obligations : The affordable units which are required by Redevelopment law are a sub-set of the Housing Element projected needs : Rule 1. 15% of all units built in a Redevelopment project area need to be affordable to families of low and moderate income. The units must be in the project area. Rule 2 . All affordable units displaced as a result of a Redevelopment project need to be replaced. These units can be located anywhere in the City. It is estimated that 3, 500 units will be built in the Main Pier Redevelopment Project Area. Thus, 500 affordable units (or 15%) need to be provided in the project area. The agency has displaced 50 affordable units and has the potential to displace 220 additional units by approving the Waterfront project . Thus, 270 affordable units need to be constructed in the City within 4 years . Total Redevelopment Agency Obligation: 500 - Within Main Pier Redevelopment Project Area 240 - Within City Total 740 - Affordable Units 5. WHAT IS AFFORDABLE HOUSING IN HUNTINGTON BEACH THE HOUSING AFFORDABILITY PROBLEM Affordability is the most widespread housing problem in California. Affordability problems occur when housing costs are so high in relation to income that households are constrained to pay excessive proportions of their income for housing, or are unable to afford any housing and are homeless. The housing affordability problem has many facets . To the homeless, it is the inability to afford any housing at all . To the low income household which has little money left over after paying for housing, it is a serious personal economic problem involving the inability to afford other necessities . Top the adequately housed renter who wants to own a home but cannot afford it, it is a problem of not being able to achieve the "American dream" of homeownership. To the new owner who is heavily burdened with large mortgage payments, the problem is trying to make ends meet until household income rises . HOUSING ELEMENT OVERVIEW INCOME *RHNA REQUIREMENT 1990 INCOME OCCUPATION MONTHLY MONTHLY EST. MAXIMUM CATEGORY DU/% HOUSEHOLDS FAMILY OF FOUR SALARY RENT MORTGAGE SELLING PAYMENT PAYMENT PRICE VERY LOW 984/15.8% Up to $24,550 Waitress/ Up to $572 Up to $613 $ 0 0 to 50% Waiter of county $20,064 median Teacher/ (OVSD) $21,811 LOWER 1,264/20.3% $24,551 to Nurse/ $573 to $916 $614 to $982 $110,000 51% to $39,280 $30,096 80% of County Police Median Officer/ (City of HB) $33,036 MODERATE 1,370/22.0% $39,281 to Pharmacist/ $917 to $1,374 $983 to $1,473 $165,000 81% to $58,920 $42,660 120% of County Sr. Planner/ $917 to $1,374 $983 to $1,473 $165,000 Median (City of HB) $44,964 UPPER 2,610/41.9% $58,921 + Physician $1,375+ $1,474+ $165,000+ Over 120% Surgeon of County Specialist/ Median $82,800 Community Services Director/ (City of HB) $69,060 * Regional Housing Needs Assessment estimates a total of 6,228 households for the City for the period 7/1/89 to 6/30/94 (1170D) SALARY INFORMATION FOR SELECTED OCCUPATIONS MONTHLY ANNUAL OCCUPATION EDUCATION/SKILLS SALARY* SALARY ' Hotel Worker ------ $850 $10, 200 (housekeeper ' Waitress/ some experience $1, 672 $20, 064 Waiter** Elementary B .A. plus . 15_ credits $1, 818 $21, 811 Teacher (Oceanview Dist) Senior Planner B .A. plus 4 yrs , exp. $3 , 747 $44 , 964 (City of HB) 2 yrs supervisory Computor Operator B.A. , 2 yrs . exp . $3 , 009 $36, 108 Supervisor (City of HB) Nurse 2-4 yr . program $2, 508 $30, 096 Secretary typing 60 WPM $2 , 075 $24 , 900 dictation 80-110 WPM Acct . Clerk/ Business or Community $1, 650 $19, 800 bookkeeper College, 2-5 yrs exp . Office Clerk H. S. graduate $1, 275 $15, 300 typing 45-65 WPM Firefighter Testing, Academy Grad. $2,454 $29 ,448 (City of HB) Police Officer Testing, Academy Grad. $2, 753 $33 , 036 (City of HB) Sales Clerk ------ $867 $101,404 Minimum wage ------ $737 $8, 840 *- 1989 - Orange County survey for California Employment Development Department **- Wage = $3 . 65/hr plus $6 . 00/hr est . tips Note; According to information obtained from the Finance Department There are 1, 105 City employees . Of these employees, 13% or 144 persons have a base salary earning in excess of $50, 000 per year . The remaining employees, 87% or 961 persons earn less than $50, 000 per year . The Orange County medium income for Jan. 1, 1990, for a household of 4 persons was $49 , 100 . (6396d) i 6. HOUSING COSTS AND INCOMES, 1970-1989 HOUSING COSTS AND INCOMES, 1970-1989 Despite California ' s broad advances in income and overall prosperity, the state' s housing affordability situation has become much worse since 1970. Both housing values and rents have increased faster than incomes (See Table III-20) . From 1970 to 1989, median home values rose by an astronomical 658 percent, and rents by 348 percent, compared to a 247 percent increase in household incomes . Table III-20 INCREASE IN HOUSING VALUE, GROSS RENT, AND HOUSEHOLD INCOME 1970 to 1989 % Increase 1970 1980 1989 70-80 80-89 70-89 Median Value Home $23, 100 $84,700 $175, 000 267 107 658 Median Gross Rent $126 $283 $565 125 100 348 Median Household Income $9,302 $18,248 $32,300 96 77 247 Source: U.S. Censuses and Department of Housing and Community Development estimates . Home values rose especially dramatically in the 1970s . Appreciation rates dropped off sharply in the 1980s only to rise again in the late 1980s . Between 1970 and 1980, median home values increased by 267 percent . Most of this rise occurred in the late 1970s when annual inflation rates in home values exceeded 20 percent for several years . The disparity between the increase in home values and incomes - 267 percent compared to 96 percent - was so great that it could not continue because a high percentage of potential buyers were being priced out of the market. Between 1980 and 1985, incomes rose faster than values (39 percent to 19 percent) . This resulted in only a minor, temporary reduction in the home purchase affordability problems that arose during the 1970s, however, because, during the overall period between 1970 to 1985, home values increased at almost double the rate of income - 337 percent compared to 172 percent. Since 1985, especially since 1987, rapid inflation in housing prices has returned. 7. FUTURE RESIDENTIAL PROJECTS Waterfront 639 units 1991 Development Holly-Seacliff 4,410 units 1991 Bolsa Chica 5,700 units 1991-92 Ascon 600 units 1991-92 Meadowlark 600 units -------- Atlanta/ Huntington St . 1,400 units -------- McDonnell Douglas 1,300 units 1991-92 Oceanview School 385 units 1991-92 Site I/Warner B Street Wintersburg School 300 units 1991-92 Site 14, 739 new units 1991-92 r B. CLARIFICATION OF DIRECTION I . We need to lock in long term assured affordability for sale units to weed out people who are going to cheat the system. I .A. We should not lock in long term affordability because it deprives homeowners .of their bundle of rights . II . We need higher densities in order for project with affordable housing to pencil out. II .B. We need to keep density low so as not to upset the adjacent residents. III . We should amend our development standards to provide for additional affordable housing opportunities . III .B. We should not change our development standards to accommodate affordable housing projects because it will have a negative effect on surrounding property values. IV. We should not build affordable housing in the coastal zone. IV.B. Redevelopment Law requires 15% of all residential units built in a redevelopment project area to be affordable. V. Affordable housing should be provided on a voluntary basis . V.A. Who is volunteering? 9. PROPOSED SOLUTIONS 1. Single Room Occupancy. 2. Density Bonus Ordinance. 3 . Employee Housing/Dormitory Housing. 4 . Modified Development Standards. 5 . Retrofitting/Upgrading Existing Affordable Housing Developments . 6 . In Lieu Fees . 7. Non-Profit Housing Corporation. is • '�:t�,=;�'a~ :f`-4: City of Huntington Beach # 2000 MAIN STREET CALIFORNIA92648 _ DEPARTMENT OF ECONOMIC DEVELOPMENT Office of the Director 536-5582 Housing 536-5542 Redevelopment 536-5582 Fax (714) 375-5087 April 22, 1991 Stephen K. Bone The Waterfront, Inc. 660 Newport Center Drive, Suite 1050 Newport Beach, California 92653-8680 Dear Steve: Thank you for the "Affordable Housing Recommendations" report which you submitted to the Agency on April 15, 1991. You are to be commended for preparing such a comprehensive report, detailing the current status of affordable housing within the City of Huntington Beach and recommendations for increasing this supply of affordable housing. I have taken the liberty of distributing copies to all concerned city departments and would recommend that you send copies to the City Council Members and Planning Commissioners. Obviously, it will take us a few weeks to prepare a response to your proposal, since it is necessary for us to include a legal review of your recommendations. It would be more expedient to include a legal review rather than have us agree to a course of action only to be advised that it is not legal. In essence, I believe your report identifies three key alternatives to meet the Waterfront's affordable housing requirement: (1) to merge project areas, (2) to expand project areas, and (3) possible development opportunities. In all three cases, we are probably looking at a timeframe of up to two years to implement any of these requirements. As you so adequately point out on page 23 of your report, the City and the Agency would be placed in serious legal liability if we could not fulfill the affordable housing requirements. Therefore, this infers that we need to assure compliance with the affordable housing requirement prior to proceeding with the residential component of the Waterfront project to avoid legal complications. How do we reconcile a two-year implementation schedule for affordable housing (if, in fact, any of the recommendations are feasible and politically acceptable), if you wish to start construction of the residential phase next year and secure approval of the entitlements this June? J Stephen K. Bone. April 22, 1991 Page Two I look forward to working with you on this proposal and the challenges it presents. Sincerely, Barbara A. Kaiser, Deputy City Administrator BAK:ls xc: City Council & Planning Commission Members Michael T. Uberuaga, City Administrator Department Heads I I Unemployment Levels 6.5%Jan. > Housing Starts -12.8%Dec. -ritten bye raig.Doty March, 1991 CITY Santa Ana Garden Grove Anaheim Buena Park Orange Amount of 15%of price 10%of price with 15%of price 15%of price 10%of price )ollars & Silent 2nd or$30K max MCC or$lOK to$25K max or$35K max 22.5K max old.Con- YOU for max W/O MCC ;tters you Down PMT 5% 5% 5% 5% 10% adicated Required t uy our PMI/MMI mill—we Required Yes Yes Yes Yes Yes :fines, rel- create a Gifts for 5% Yes on No No Yes Yes seeds and down allowed FHA/VA your con- %Charged 5% None it is an None it is an 5%simple 8%simple equity share grog* equity share prog* interest interest PMTS on None first None None None first None first 2 nd 5 Yrs 5 Yrs 5 Yrs Term of 2nd 20 Years 20 Years 30 Years 20 Years 15 Years. for those Payback Amortized Equity Share Equity Share Amortized Amortized e buyers. years 6 years 6 years 6 d a large thru 20 thru 20 thru 15 us to fund Use with Optional Optional Must use MCC not MCC not tion with MCC with MCC available available s' "Silent prepayment 5%Yr 6 Call City 10%Yr 1-5 5%Yr 1 8%Yrs ast month penalty 4%Yr 7 8%Yr 6 4%Yr 2 1-5 my on the 3%Yr 8 6%Yr 7 3%Yr 3 our chart 2%Yr 9 4%Yr 8 2%Yr 4 :he Silent 1% Yr 10 Etc. I%Yr 5 eral cities Property Target W/In Target W/In WAD ice to first Location areas only city limits areas only city limits city limits recorded Type of SFR/condo SFR DET SFR only SFR/condo SFR/condo it t.d. The property only er is low, Type of Fixed or Fixed or no Fixed only Fixed or no Fixed or no vary from loan any arm neg arm neg arm neg arm the chart. Use MCC behind: 2 months FHA Yes Yes Yes No NO nor buyers VA Yes Yes Yes MCC MCC nment and Convent. Yes Yes Yes Program Program ncome per lumber of Max income per persons y age, re- 1 $41.280 $41.300 $41,200 $41,250 $41,250 working. 2 47,160 47,050 47,150 47,100 47,150 programs 3 53,040 53,050 52,050 53,000 53,050 is merely 4 58,920 56,456 58,900 58,900 58,900 onal loans 5 63,600 63,650 62,600 of funds. 6 68,400 68,350 66,300 >mbine the 7 73,100 69,950 rtns. This 8 77,750 73,650 CHAFA. Wierd Limited Requirements Availability Subjective availability ition.This ;: c':• Availability:Call each city to insure availability every time you want to use it real estate Itogo , � lent to ex- Phone contact 667-2200 741-5140 533-8750T521-9900 771-2315 ' ' by section ` -0 17731 IRVINE BOULEVARD, SUITE 203 ERN CITIES V TUSTIN, CALIFORNIA 92680 • (714)730-0392 kGE CORPORATION Huntington Beach sill ' Fountain Valley Board of REALTORS,' Inc. R E A LTO R' 8101 Slater Avenue•Huntington Beach,CA 92647•(714)847-6093•F � r-.=_� Cq April 24, 1991 l.i p The Honorable Peter Green, Mayor - ; and Members of the City Council City of Huntington Beach C!1' Cps S EACH 2000 Main Street lFrIGE Huntington Beach, CA, 92648 Dear Mayor Green and Council.Members: RE: Affordable Housing Concerns We understand that the City Council and Planning Commission will hold a joint study session on Monday, April 29, with regard to affordable housing issues. I regret that I will be unable to attend this study session personally, as I will be in Washington D. C. attending a National Association of REALTORS@ Legislative Meeting. In my absence, I have requested that Kent M. Pierce, a past president of our Board and past chairman of the Planning Commission, represent our concerns. I did want to provide some input to the Council and Commission, however, with regard to our areas of concern on the affordable housing issue. First of all, I would like to state that our continuing interest in the City's housing issues stems from a desire to see homeownership available to all who earnestly wish to enjoy such ownership and its benefits, regardless. Of income. We are i-ic+ seeking 3dvar.:t3CIS for ourselves as REALTORS©; we're not advocating concessions for developers per se or for any other special interest group, but we want to encourage a development climate conducive to the production of housing in all price ranges and assure that those who buy homes receive the traditional benefits of homeownership. ISSUE 1: Based on the well documented failure of inclusionary zoning programs, (wherein one set of homeowners - is required to subsidize another) resale price controls, (which undermine the value of homeownership) and rent control, (which constitutes a partial confiscation of private property) we are steadfastly opposed to these programs. OFFICERS JAMES M. RIGHEIMER, President • FLORENCE LUBOW, First Vice President LUCILLE HARMON, Second Vice President • JOHN CLOUGHEN, Secretary/Treasurer DIRECTORS THOMAS C. VAN TUYL • VICKY BAGLEY • BARRY BUSSIERE • JOE GNAS • PAT PAULK WILL L. WOODS, Executive Vice President • JUDITH A. LEGAN, Vice President/Public Affairs ISSUE 2e We do not believe it is the responsibility of the developer to shoulder the economic burden of providing affordable', housing. The provision of housing is a societal problem which should be shared by all; therefore, we support a voluntary program to provide affordable housing and urge the City to cooperate in this regard by adopting more flexible development standards and increasing density. We believe that the marketplace will respond to the need for affordable housing, given the incentive to do so and that affordable housing is like anything else--the more there is, the less it costs. The free market system will keep housing affordable if there is sufficient supply. ISSUE 3e We support alternative methods of providing housing assistance, i.e. it is not always possible to develop affordable ownership housing. What we are talking about here is the opportunity for "affordable shelter." It may be possible to provide affordable rental housing, such as the SRO's under consideration or small rental properties built and managed by a non-profit organization or a rental assistance loan program to help with the first-last months rent and security deposits. There are many ways the City could explore to assure this opportunity for affordable shelter. ISSUE 4: We were very pleased to see the City's Redevelopment . Agency propose a second trust deed program for first time buyers in a recent project, however, you may recall that we objected to the terms of the second trust deed. Our testimony had nothing to do with the specific project under consideration, however, we remain concerned about the second trust deed program and would oppose any attempt to implement the program with the same terms on any future projects. In our opinion, the terms were not only a bad deal for the homeowner but also for the City. We totally support the concept of a second trust deed and offer our assistance to the City staff on this and any future.proposals where our professional advice would be helpful. ISSUE 5e We oppose any requirement for continued affordability for ownership housing. A survey of the county and several other Orange County cities conducted by city staff in 1987 alleged that communities which provided a density bonus under government code section 65915 also required "continuing affordability" for a specified period of time. In the interests of accuracy, I think it is critical to the discussion to point out that, in fact, neither the County nor any of the cities surveyed have continuing affordability requirements for ownership housing. In every instance cited by staff, the provision applied to RENTAL HOUSING ONLY. i ISSUE 6: We recognize the problems caused by our aging infrastructure but to expect these problems to be solved by imposing ever increasing impact fees on new 'construction places an unfair burden on that small segment of our population, therefore, we believe that methods of financing our infrastructure should be adopted that place a fair burden on all those who use or benefit from, these public facilities. ISSUE 8: We strongly support the use, whenever possible, of the income criteria for purchasing affordable housing units developed by Chapman College, instead of those by HU15. We conducted a survey of neighboring communities and the County of Orange several years ago, and found that 5 of the 7 used Chapman College income criteria. In conclusion, I am reminded of a quote I read several years ago from the Secretary of the U.S. Department of Housing and Urban Development, who said "Any community that wants affordable housing can have it. I agree, and therein lies one of the major hurdles that must be overcome. We look forward to continuing dialog with the City on this important issue. Sincerely, G James . Righeimer President cc: Michael Uberuaga Kent M. Pierce HB/FV Board of Directors C 1 j $16,000 each.At this price,a builder of a 20 unit housing program is designed to provide incentives for builders to tract would have had to pay$80,000 to proceed with the produce lower cost units voluntarily. project.Although the requirement is contrived,the expen- The complete phase out of the mandatory IHP was com- diture is as real as those for land,labor,and materials and pleted in mid-1986.Projects.that were previously approved must, therefore, affect the cost of the final product to the with inclusionary requirements still retain those obligations. home buyer. However, new projects approved subsequent to the phase If the$80,000 spent for excess credits could be regarded out will not have inclusionary requirements.A threat to the as a tax on the project, it is likely that the builder would health of the Orange County housing market has been pass that tax along to the buyers at the rate of$4,000 per removed.In its place is a voluntary program wherein builders home. Of course the money paid for these excess credits who produce houses for the lower income buyers reap the does not go to a governmental jurisdiction,it flows to those advantages of rational administrative incentives while fulfill- who have accumulated excess credits often by spedaliz- ing a demand in one segment of the housing market. ing in the construction of lower cost housing units. It has been speculated that millions of dollars have been added Production Up as IHP Fades to the cost of constructing houses as hundreds of excess Although economic conditions improved between 1983 credits have changed hands among builders to satisfy the and.1986,improvements in the housing construction pic- JHP requirements.Whether those excess credits represent ture in Orange County have been so good that many feel morg lower cost units than would have been produced that the elimination of the IHP(and the establishment of i without the IHP is subject only to conjecture. the Housing Opportunities Program)has had-a significant positive.effect. It will take some time to evaluate the A Return to the Market positive effect that the demise of the IHP will have on hous- As the Orange County Board of Supervisors deliberated ing production.However, the data gathered through 1986 the fate of the IHP in the Spring of 1983, proponents of suggest two possibilities. It could be argued that the an- the program continued to ignore.economic common sense ticipated total elimination of the 1HP during its three year and the program's poor track record. They suggested a phase out, since 1983, has engendered optimism and more restrictive IFIP while the evidence and the economic spurred increased housing production in the county. environment supported a phase out of'the W. In most Perhaps a more conservative interpretation,given the data cases, inclusionary units were not being occupied by the available,is that the IHP probably exacerbates poor hous- poor.Rather,there were indications that young,upward- ing production under unfavorable economic conditions and ly mobile white collar people were meeting the economic is, at best, superfluous in better times. qualifications for these units because they were in the ear- During the 14 month period ending in October 1983,"af- ly stages of their careers. There was also a feeling shared fordable"housing production averaged 88 units per month. by many that the original argument for resale controls on Recent data show that that rate increased to 128 units per inclusionary-units was-seriously flawed The administra- month during the subsequent 27months through January tion of the resale program was complicated and basically 1986. This increased housing production may have ineffective.A relatively small number of inclusionary units moderated the rate of price increases for resale homes in had been sold to second owners by 1983, while hundreds• the county which slowed since 1983.In the unincorporated more were being released from the controls because areas,2,191 resales were recorded between September 1982 qualified low income buyers could not be found. and October 1983.Of these,307(14%)were in the affor- After years of public discussion of the IHP in the press dable range,i.e.,sold to families earning 120%or less than and in public forums,the Orange County Board of Super- the county's median income.In contrast,3,841 resales were visors held a public hearing on March 30, 1983 that ex- recorded during the subsequent 15 month period.Of these ceeded eight hours.After that hearing the Board voted to 907(24%)were in the affordable category.Thus, during eliminate the mandatory'IHP by phasing it out over a three the IHP phase out period the monthly rate of resales in- year period.For the first two years of the phase out period creased 64%while the monthly affordable resales increased the mandatory inclusionary figure was set at 10%.It drop- 173%. ped to 5% during the third year. The Board established . Data available as of December 1986 shows that the a Housing Opportunities Program with voluntary produc- voluntary Housing Opportunities Program has been very tion goals for lower cost housing units that were com- successful.Orange County's December 1986 Housing Af- parable to those of the mandatory IHP.This market based fordability Monitoring System (HAMS) report reveals The Chapman College Economic & Business Review i The Folly of Inclusionary Housing by Roger R. Stanton were attracted to the county by many features including the rapid construction of new housing, good schools and parks, clean air, and low crime.The demand for housing =', by those in the middle and upper income levels seemed nearly insatiable. However, the response of builders and developers was more than adequate. But as the decade of the 1970's drew to a close, there was a perceived increase in the demand for new housing for those in the lower in- come categories.A small, but highly vocal,group of hous- ing control activists took advantage of the normal lag in supply response to bring political and legal pressure on the Board of Supervisors in calling for the adoption of an In- clusionary Housing Program (IHP). s 1f�.2on� Controversy and Complexity In 1979, the Orange County Board of Supervisors ap- proved the adoption of the controversial IHP as part of Dr.Stanton has represented the First District on the Orange the Housing Element of the General Plan.The Board's ac- County Board of Supervisors since January 1981. He has tion was not a vote of confidence for the IHP. Rather the served as Professor of Management at California State Board was.concerned about the continued attractiveness University,Long Beach and held administrative positions of the county to business and industry. Lower income with aerospace firms.He earned his Doctor of Business Ad- ministration degree :from the University of Southern housing was a key.Also,many feared that a law suit from the Legal Aid Society had the potential to halt all further - ' California. construction in the county s unincorporated area until the wisdom of government intervention could be settled in the The economic history of state and local government is courts. At that time, this fear was fed by the realization j replete with exAmples of good intentioned meddling in the that the state was limiting construction in the coastal areas market system resulting in unintended and unwanted con- of California. Adding confusion rather than insight were sequences. Once initiated, an ill conceived and demon- those few compassionate activists who were long on good strably ineffective government regulatory program seldom intentions, but short on an understanding of sound loses its base of social activist support. Unless quickly economics. For them the unproven and ultimately false reversed,such legislative intrusion is often redirected away Promise of the IHP was more appealing than the proven from its originally intended target of benefit toward efforts market system. designed to justify further regulation. With the failure of The Inclusionary Housing Program implemented in social benefit schemes that are aimed at replacing our Orange County was touted by proponents as progressive market based system,proponents of such schemes usual- and compassionate. They called it an "affordable"hous- ly call for still more government regulation and control. ing program which served to enhance its emotional appeal In the absence of cogent arguments based on success, they more than it reflected reality.Ostensibly,the IHP was in- may turn to emotional pleas and legal challenges unrelated tended to insure an adequate production of housing for to the track record of the program in question. Orange those in the lower income categories.But some believe that County's Inclusionary Housing Program was ill conceived it may have been intended to function more as a device and proved to be counter productive.Facts and economic to subtly transfer the ownership of homes from private logic supported its demise, but the emotionalism and hands to public control. distortion that gave it birth continue to persist. At fast glance, the IHP seemed to be based on a simple formula. Under Orange County's IHP builders were re- The history of Orange County during the 1970's gave quired to sell 25% of newly constructed homes in unin- rise to conditions that'nurtured receptivity to proposed corporated areas to buyers who earned 120% or less of panaceas to socio-economic problems. Between 1970 and the county's median income. The 25% was allocated as 1980 the county's increase in population averaged over follows: 10% to those earning no more than 80% of the 51,000 new residents per year. During this period people median income; 10% to those earning 81-100% of the me- The Chapman College Economic &Business Review 5o • �� CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUN"NGMN 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: . l.. 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 3. Housing Element Study 'Session Affordable Housing ,Memo 1990,' whic contains a:discussiondated July:>12 of - Affordable Housing issues within the. City of Huntington Beach (Attached) : This .information will be presented by staff atthe 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) 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) '7/4,1yo r CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUN"NGMN BEACH tkTo 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 affordablb 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. Section 8..0 1984 Housing Element) to facilitatex.affordable housingdn:the `Cty. Many.of=.the programs _have.,.been ,carried over to`.the 1989..:Housin Element:.update. _ __. 9_ - . Because "of _new State requirements the' current Housing Element:-goes further in '.quantify ng :,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 o .ensure that . -the buyers meet the criteria for an:'affordable housing unit: - _ HZ:kj1 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 Hartfeiter 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 S:tellrecht 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 • -ie-7 u �,5 / 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 progtams. 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. 11W��V 7- 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 tJ e needs of families of all sizes. 8.1.2 Programs 6.1.2.1 Action: Utilize the services of the Orange County Fair Housing Council. Anticipated Impact: All complairts of discriminatory practices in housing wifhin 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 housin), 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 within 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: HuntingtonBeach 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 66ce6s-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 Day leMaclntoshCenter Financing: No cost to the City Schedule: Ongoing `r 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 suitabl6lor.physically disabled persons. RMonsibile 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 wich program; fund rehabilitation loans h 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 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 family 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 8.22 Programs 8.221 Action: Continue to provide tax-exempt single family mortgage revenue bonds to provide below market rate financing for moderate income first-time buyers. Anticipated Impact: Make a greater share of housing stock available to first-time buyers. Responsible Agencies: HCD Financing: Huntington Beach sale of mortgage revenue bonds c hed ule: Ongoing 8.222 Action: Consider the feasibility of permiting a waiver or reduction of development fees for projects participating in an affordable housing program. A!ticipated Impact: If feasible, such an amendment could be expected to decrease'ftie oast of housing. Responsible Agencies: Department of Development Services Finanring:' Department budget Sc hed ule: 1985 8.223 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 c hedule: 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: HurtingtonBeach HCD Financing: HCD Administrative Budget c hed ule: 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 Anticipated Impact: Maintenance of the current level of assisted housing participation in the city. Responsible Agencies: Hurtington Beach HCD and the Orange County Housing Authority. Financing: HCD Administrative funds/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 housing. Responsible.Agencies: Hurtington 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-perdenit of-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: $16 million tax exempt financing (closed in March 1983) Schedule: 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 importart 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 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 7o 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 facilties 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 Commercilal 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. Anticipated Impact: Ensure consistency in carrying out the housing program while rciaintainiig quality development. ® Responsible Agencies: Department of Development Services 73 Financing: Department budget Schedule: 1985-1986 8.3.2.2Action: Monitor changes in industrial and commercial land uses to assess their imP-act on residential land use. Anticipated. Impact: This action is intended to reflect changing conditions in ttie city in order-to adequately respond to current housing needs. Responsible Agencies: Department of Development Services Financing: Department budget $c hed ule: Ongoing 8.3.2.3 Action: Investigate the feasibility of utilizing vacated school and park sites and other public ly owned land for low and moderate cost housing. Anticipated 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 Works Financing:' Department budgets c hed ule: 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. Art is t at ed Impact: I ncrease in the number of suits ble sites f or de ve lopme nt 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 reheblitated. 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 eas 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 P rograms 8.4.2.1 Action: Review all changes in planned land uses to determine the cumulative impagt 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 of Public Works Finaming: 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 Agemies: Huntington Beach HCD Financing: t950,000 CDBG original loan pool; $200,000 annual addition. Schedule: Ongoing 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 Financing: 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 toinvestor-owners of multi-family rental housing. Anticipated Impact: Rehabilitation of deteriorating multi-family housing and the preservation and enhancement of rental housing stock occLpied by low and moderate income households. Goal of 35 units per year. Responsible Agencies: Huntington Beach HCD Financing: CDBG Loan Pool and CDBG Funds Schedule: 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 re habi li tat io n programs. Anticipated Impact: The prevention of deterioration in marginal neighborhoods. Responsible Agencies:. Huntington Beach 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. Anticipated Impact: Rehabilitation of 80 units and initiation of occupancy and maintenance standards. ' Responsible Agency: HCD Financing: t200,000 in CDBG funds;/Rdevelopment Agency Tax Exempt Financing Schedule: 1984-1985 8.4.2.7 Action: Prepare a City-wide Maintenance ordinance. I ArticiRated 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 Sc hedule: Ongoing 8.5 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 rerts. Tins conflict necessitates a delicate balance. R 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. Antic�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. • Antici'pated 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 Financinq: Department budgets Schedule: 1984 8.5.23 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. Articipated Impact: Increase the supply of affordable housing. Responsible Agencies: Department of Development Services and Huntington Beach 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 ImRact: This action will facilitate the production of affordable housi ng. Responsible Agencies: Huntington Beach HCD/Redevelopment Agency Financing: 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 - Financing: Department Budgets Schedule: Ongoing 8.5.2.6 Act ion: 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, wart 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 I • 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 ld ng. • 79 REGIONAL HOUSING NEEDS ASSESSMENT (RHNA) AND 1990 HUD HOUSING INCOME GUIDELINES Income RHNA **** Household Income* Monthly , Estimated Category Requirement for 1990 Housing Maximum Selling No. %of Households Payment Price *** Very Low 984 15 .8 up to $24, 550 up to $613 $67,500 (0 to 50% of County Median**) Lower 1,264 20 .3 $24, 551 to $39, 280 $614 - $982 $110,000 (51% to 80%. of County Median) Moderate 1, 370 22. 0 $39 ,281 to $58, 920 $983 - $1473 $165,000 81 o to 120 0 of County Median) Upper 2, 610 41. 9 over $58, 921 over $1,473 over $165, 000 (over 120% of County Median) * Based upon HUD figures for a household of 4 persons. ** Orange County Median Income (Based upon HUD) for 1990 is $49, 100 . *** Based upon 10% down and 10% fixed interest rate for 30 years . **** Regional Housing Needs Assessment estimates a total of 6, 228 households for the City for the period 7/1/89 to 6/30/94 . Table 8, Page 3=32 of the 1989 Draft Housing Element. ( 6095d) (6/90) �4 SALARY INFORMATION FOR SELECTED OCCUPATIONS MONTHLY ANNUAL OCCUPATION EDUCATION/SKILLS SALARY* SALARY Hotel Worker ------ $850 $10,200 (housekeeper Waitress/ some experience $1, 672 $20, 064 Waiter** Elementary B.A. plus 15 credits $1, 818 $21, 811 Teacher (Oceandiew Dist) { Senior Planner B.A. plus 4 yrs , exp . $3 , 747 $44 , 964 (City ,of HB) 2 yrs supervisory Computor Operator B .A. , 2 yrs . exp . $3 , 009 $36, 108 Supervisor (City of HB) Nurse 2-4 yr. program $2, 508 $30, 096 Secretary typing 60 WPM $2, 075 $24 , 900 dictation 80-110 WPM Acct . Clerk/ Business or Community $1, 650 $19 , 800 bookkeeper College, 2-5 yrs exp. Office Clerk H. S. graduate $1, 275 $15,300 typing 45-65 WPM Firefighter Testing, Academy Grad. $2,454 $29 ,448 (City of HB) Police Officer Testing, Academy Grad. $2, 753 $33 , 036 (City of HB) Sales Clerk ------ $867 $10,404 Minimum wage ------ $737 $8, 840 *- 1989 - Orange County survey for California Employment Development Department **- Wage = $3 . 65/hr plus $6 . 00/hr -est . tips Note: According to information obtained from the Finance Department There are 1, 105 City employees . Of these employees, 13% or 144 persons have a base s'a-lar y�e-arning in excess of $50, 000 per year. The remaining employees,(87q or 961 persons earn less than $50, 000 per year. The Orange County medium income for Jan. 1, 1990, for a household of 4 persons was $49 , 100 . (6396d) x. rpo Mi TABLE 32 CITY OF HUNTINGTON BEACH. AFFORDABLE HOUSING.PROJECTS. WITHIN s; THREE MILES-.OF `COASTAL.ZONE. Total Number Affordable Pro 'ect 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 23.0 188 . Warner and Bolsa Chica Harbor Point 102 Al Warner and Green For Rent: Bond issue for multi-family units. 20% are set-aside -at affordable .d rental rates. Huntington Beach Breakers 342 85 AtlantA and Beach w. Rivermeadows 152 30 Magnolia and Warner . Huntington Village 114 27 Springdale and Edinger y (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- Beach - Source: City of Huntington Beach Department of Economic Development l 4-28 r CHRONOLOGY OF CITY OF HUNTINGTON BEACH 1989 DRAFT HOUSING ELEMENT UPDATE JULY 5 , 1990 December 1988 : Consultant, Cotton Beland & Associates, selected to update Housing Element . January 1989 : Consultant begins document update. February through May 1989 : Preparation of Draft HousingElement . June 1989 • In-house staff review of document and final first draft revisions . June 30 , 1989 • - Draft Element sent to Department of Housing and Community Development (HCD) . - Draft Element available for public review. July 7, 1989 • Notification received from state indicating receipt of document and initiating 45-day review period. July 19 , 1989 • Copies of Draft Element dated June 1989, distributed to Planning Commission for their review. July 20 , 1989 : Copies of Draft Element dated June 1989 , distributed to City Administrator and City Council for their review. July 25 , 1989 : Copies of Draft Element dated June 1989 , distributed to City Council appointed Housing Committee for their review. July 31, 1989 : Letter from HCD indicating necessary revisions to Draft Element . Chronology April 19 , 1990 Page two August 14 , 1989 • Public workshop on Draft Housing Element to receive public comments . August 30 , 1989 • Revisions submitted to HCD. September 6 , 1989 : Study session and public hearing with the Planning Commission. Item continued to September 19, 1990, to allow staff to incorporate comments on draft document. September 19 , 1989 : Public hearing with Planning Commission. Item continued to October 3 , 1989 , to allow completion of discussions between the consultant, staff and HCD regarding revisions . September 20 , 1989 : Revisions submitted to HCD. September 26 , 1989 : Letter from HCD indicating additional revisions are necessary. October 3 , 1989 : Public hearing with Planning Commission. Item continued for 30 days to allow further discussion with HCD. November 7 , 1989 : Public hearing with Planning Commission. Discussions with HCD regarding revisions continue. Item continued to December 5, 1989 , meeting . December 5 , 1989 : Public hearing with Planning Commission. Item continued to allow staff to finalize revisions to document. December 14 , 1989 : Revised draft submitted to HCD. New 45-day review period initiated. 4/18/90 (-2-) (5530d) Chronology April 19 , 1990 Page three January 26 , 1990 : Letter from HCD indicating that Draft Element is in compliance with State Housing Element law. February 28 , 1990 : Copies of Revised Draft Element dated December 1989 , distributed to Planning Commission and City Council for their review. March 20 , 1990 • Study session with Planning Commission to discuss Draft Element and to receive comments . April 3 , 1990 : Public hearing with Planning Commission to receive public comments . Item continued to public hearing on May 1, 1990, for action on document . May 1, 1990 • Planning Commission reviewed and approved the Draft Housing Element . May 21, 1990 • City Council continued Draft Housing Element to two study sessions . July 16 , 1990 • Scheduled public hearing. 4/18/90. (-3-) (5530d) f Di S+06*hjd eD +At4 y COUNCIL COMMENTS FROM 7-& fV A D 5.JO JULY 2, 1990 STUDY SESSION (1989 DRAFT HOUSING ELEMENTS 7 1 . Comment Do we support Program 3 . 7, page 3-20 which reads : Continue to work with propertyowners 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. Response Specific plans will be formulated to implement the Holly Seacliff Master Plan. When these are submitted, staff will assess each plan to ensure that it implements the policies and programs of the Housing Element . 2 . Comment Suggest an amendment to Program No . 6 . 1, page 3-28, to incorporate provisions for recycable material collection within multi-flamily residential projects . Program No . 6 . 1 reads : 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 . Response Suggested amendment to read: "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 recycable materials in multi-family residential projects . " Suggested amendment to Anticipated Impact to read: "Reduced energy consumption in residential projects and increased opportunities to recycle materials. " 3 . Comment Is policy E, page 3-25 feasible? Policy E reads : 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 affordabale units where feasible in new residential construction. -� Response A Staff recognizes providing affordable housing in the Coastal Zone is difficult and sometimes infeasible. However, State Law requires that cities attempt to provide affordable housing within the Coastal Zone or within 3 miles of the Coastal Zone. Table 32, Appendix B page 4-28 indicates the affordable housing projects within three miles of the Coastal Zone. According to this information, over 1, 000 affordable housing units have been created since the January 1, 1982, the state mandated reporting period. 4 . Comment Would Policy E, page 3-10 really work? Policy E reads : 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 . Response Mixed use projects that are submitted to implement this policy will need to be assessed on a project-by-project basis to determine if residential costs are reduced. In addition, State Law addressing density bonuses (AB 1863 , Hauser) lists mixed-use projects as one type of developer incentive to encourage the provision of afordable housing. 5 . Comment Combine Policies H and R from pages 3-10 and 3-11 which now read: Promote adoption of development standards which reduce housing costs and Ensure that any adverse impacts are minimized when increasing densities or relaxing standards in order to provide for low and moderate income housing . Response Suggested combination of policies to read: "Promote adoption of development standards which reduce housing costs. while ensuring that any adverse impacts are minimized when increasing densities or relaxing standards in order to provide for low and moderate income housing . " ( 6451d)