HomeMy WebLinkAboutCity of Huntington Beach 1989 Housing Element Update - Revis City ®f Huntington Beach
1989 Mousing Element Update
Revised Draft Mousing Element
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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
s:
City of Huntington Beach
1989 Housing Element Update
Revised Draft Housing Element
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CITY OF HUNTINGTON BEACH
HOUSING ELEMENT UPDATE
Revised Draft Housing Element
May 1990
Prepared by:
Cotton/Beland/Associates, Inc.
1028 North Lake Avenue, Suite 107
Pasadena, California 91104
555.00
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 1-3
1 .4 Public Participation 1-5
2.0 SUMMARY OF HOUSING NEEDS, CONSTRAINTS AND
OPPORTUNITIES
2. 1 Summary of Housing Needs 2-1
2.2 Housing Constraints 2-6
2.3 Housing Opportunities 2-11
3.0 HOUSING PLAN
3. 1 Evaluation of Accomplishments Under
1984 Housing Element 3-1
3.2 Goals, Policies, and Program Actions 3-6
3.3 Housing Assistance Plan 3-30
3.4 Regional Housing Needs Assessment 3-32
3.5 Redevelopment Set-Aside Fund 3-33
3.6 Description of Implementing Programs 3-36
APPENDICES
A. State Housing Element Requirements
B . Technical Data Report
LIST OF TABLES
Table Page
1 Vacant Lands Suitable for Residential Development 2-14
2 Residential Recycling Activity 2-15
3 Potential Residential Development Summary 2-21
4 Affordable Housing Developments 3-5
4A Housing Element Program Summary 3-6. 1
5 Rental Subsidy Needs of Lower Income Households .3-30
6 Lower Income Households to Receive Rental Subsidies 3-30
7 Units to be Assisted for Lower Income Households 3-31
8 1989-1994 Household Needs by Income Group 3-32
LIST OF FIGURES
Figure Page
1 Previously Constrained Lands Suitable for 2-12
Residential Development
2 Bolsa Chica Residential Development Plan 2-19
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1.0 INTRODUCTION
The Housing Element is intended to direct residential development and
preservation in a way that coincides with the overall economic and social
values of the community. The residential character of a city is largely
dependent on the type and quality of its dwelling units, their location,
and such factors as maintenance and neighborhood amenities. The Housing
Element is an official municipal response to a growing awareness of the
need to provide housing for all economic segments of the community, as
well as legal requirements that housing policy be made a part of the
planning process. As such, the Element establishes policies that will
guide City officials in daily decision making and sets forth an action
program designed to enable the City to realize its housing goals.
1. 1 State Policy and Authorization
The California State Legislature has identified the attainment of a decent
home and a suitable living environment for every Californian. as the
State's major housing goal . Recognizing that local planning programs play
a significant role in the pursuit of this goal , and to assure that local
planning effectively implements statewide housing policy, the Legislature
has mandated that all cities and counties prepare a housing element as
part of their comprehensive General Plans. Section 65302(c) of the
Government Code sets forth the specific components to be contained in a
community's housing element. Appendix A summarizes these State
requirements and identifies the applicable sections in the Huntington
Beach Housing Element and Technical Data Report where these requirements
are addressed.
Article 10.6 was added to the Government Code in 1980 and incorporates
into law the Housing Element Guidelines promulgated by the California
Department of Housing and Community Development (HCD) . The original
Housing Element Guidelines were adopted on June 17, 1971, and revised
guidelines were adopted on November 17, 1977.
The Government Code specifies the intent of the Legislature to insure that
counties and cities actively participate in attaining the state housing
goal , and sets forth specific components to be contained n a housing
element. These include the identification and analysis of existing and
projected housing needs, resources and constraints; a statement of goals,
policies, quantified objectives, and scheduled programs for the
preservation, improvement and development of housing; identification of
adequate sites for housing; and adequate provision for the existing and
projected needs of all economic segments of the community.
State law requires Housing Elements to be updated at least every five
years. The City has prepared the following updated Housing Element in
compliance with the July 1, 1989 deadline for jurisdictions within the
SCAG region.
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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 goal's, 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
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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.
Whi.le 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.
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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.
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Coastal
The Coastal Element contains the land use designations . and policies
adopted by the City to implement the California Coastal Act. of 1976. The
Coastal Element, which is the Land Use Plan portion of the City' s Local
Coastal program, has been certified in geographic part by the California
Coastal Commission. Although the provision of affordable housing is no
longer required under the Coastal Act, the Land Use Plan itself may
affect the cost and desirability of housing within the entire City. Low
and moderate income housing within the coastal zone is currently addressed
by Section 65590 of the Government Code. The Technical Data Report to the
Housing Element discusses the housing stock within the Huntington Beach
Coastal Zone and recent housing developments under Section 65590.
1.4 Public Participation
Section 65583(c) (5) of the Government Code states that "The local
govenment shall make a diligent effort to achieve public participation of
all economic segments of the community in the development of the housing
element, and the program shall describe this effort. "
Upon completion of a Draft Housing Element, the City advertised its
availability for public review. The Draft Housing Element and Technical
Data Report were made available to the public at City Hall free of charge.
The City also circulated draft elements to housing interest groups for
comment.
The City Council appointed a Housing Committee in October 1988 for the
purpose of working with city staff to develop an overall program strategy
for expenditure of the City's 20% housing set-aside fund, as well as
reviewing other housing issues. The Housing Committee consisted of three
City Council/Redevelopment Agency members, and four City residents
appointed by the remaining four Council members. Citizen representatives
included individuals experienced in both non-profit and for-profit
housing development, and with CDBG programs. Based on the Committee's
knowledge of housing issues facing the community, they also acted as the
reviewing body for the Housing Element and Technical Data Report. City
staff met with the Committee on several occasions to receive their input
on the major housing issues facing the community, and to refine Housing
Element policies and programs to address identified housing needs.
Prior to public hearings, public participation was provided for in a
special Housing Element workshop conducted by City staff. The purpose of
the workshop was to review the findings of the Element and Technical Data
Report, and to receive community input on proposed policies and programs.
The workshop was advertised both in the local newspaper, as well as
through direct mailings to interested community members.
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Public participation is also provided in the form of public hearings.
Following the preparation of the Draft Housing Element and its review by
the Housing Committee and the public, the Planning Commission conducts
public hearings on the Element. Subsequent to Planning Commission action
and recommendations to City Council , further public hearings will be held
at the City Council level . All public hearings are advertised in the
newspaper, with notices mailed to interested citizens and community
groups. Once the public hearings and related reviews are completed, the
City Council may formally adopt the Element.
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2.0 SUMMARY OF HOUSING NEEDS, CONSTRAINTS AND OPPORTUNITIES
As part of this Housing Element update, a separate Technical Data Report
was prepared which documents the population, socio-economic, and housing
characteristics of the City of Huntington Beach. This background report
helped to define the City's current and projected housing needs and to
provide direction in the development of goals, policies and programs to
address these needs in the Housing Element.
This section of the Housing Element summarizes the findings of housing
need from the Technical Data Report. In addition, certain constraints
which may discourage the construction of new housing are evaluated, as well
as opportunities that will further the development housing in the
community.
2.1 Summary of Housing Needs
A number of factors will influence the degree of demand or "need" for new
housing in Huntington Beach in coming years. The four major "needs"
categories considered in this Element include:
- Housing needs resulting from increased population growth, both in
the City and the surrounding region;
- Housing needs resulting from the deterioration or demolition of
existing units;
- Housing needs that result when households are paying more than they
can afford for housing;
- Housing needs resulting from the presence of "special needs groups"
such as the elderly, large families, female-headed households,
households with a handicapped person, and the homeless.
2.1.1 Population Growth
The 1988 population of the City of Huntington Beach was nearly 188,000
persons, making it the third largest city in Orange County behind only
Anaheim and Santa Ana. During the 1980's, Huntington Beach experienced an
average annual growth rate of 1 .25%, somewhat below that experienced
County-wide. The City's slowing population growth rate is indicative of
the fact that Huntington Beach is an older, more built out community with
limited vacant .land available for residential development.
Growth projections through the year 2010 indicate a further slowing in the
City's population growth to an average annual rate of .63%. As discussed
under Housing Opportunities, much of the City's future growth will be
accommodated through the recylcing of existing residential and
non-residential land uses, and through the removal of development
constraints on vacant parcels related to oil production, floodplain
regulations and fragmented ownerships.
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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. 4f 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.
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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
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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
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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.
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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
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of land, but land zoned for higher densities commands a higher market
price. For this reason, density bonuses rather than zoning changes may be
the preferred vehicle for reducing land costs. The Housing Element
identifies the use of land assemblage and write-down as an incentive for
the provision of affordable units.
Labor Costs: Labor is the third most expensive component in building a
house, constituting an estimated 17% of the cost of building a single-family
dwelling. The cost of union labor in the construction trades has increased
steadily since April 1974. The cost of non-union labor, however, has not
experienced such significant increases. Because of increased construction
activity, the demand for skilled labor has increased so drastically that
an increasing number of non-union employees are being hired in addition to
unionized employees, thereby lessening labor costs.
Financing: While interest rates have fallen more than 10 percent from
their near 20 percent high in the early 1980s, they still have a
substantial impact on housing costs which is felt by renters, purchasers
and developers. It should be noted that some mortgage financing is
variable rate, which offers an initial lower interest rate than fixed
financing. The ability of lending institutions to raise rates to adjust
for inflation will cause many existing households to overextend themselves
financially, as well as returning to a situation where high financing
costs substantially constrain the housing market. An additional obstacle
for the first-time home buyer continues to be the 10-20% downpayment
required by lending institutions.
The median sales price of a single-family home in Huntington Beach (1988)
was $222,000. A $199,800 mortgage (10% down payment) amortized over 30
years at an interest rate of 10.5% would result in monthly house payments
of $1,827. This level of payment eliminates Huntington Beach's very low,
low and moderate income households from the for-sale housing market.
Condominiums do, however, offer an alternative homeownership opportunity
for many of the City's moderate income households.
Interest rates are determined by national policies and economic
conditions, and there is little that local governments can do to affect
these rates. Jurisdictions can, however, offer interest rate write-downs
to extend home purchase opportunities to lower income households. Through
its mortgage revenue programs, the City provides interest rate write-downs
to benefit Low and Moderate Income households. A special multi -family
unit interest rate write-down program is being developed 'by the City to
conserve existing Federally-subsidized housing projects. Finally, the
City is developing a shared equity program for downpayment assistance to
first-time homebuyers.
Profit, Marketing and Overhead: Developer profits generally comprise
10-15% of the selling price of single-family homes and slightly lower for
condominiums. However, in communities like Huntington Beach where the
market demand for housing is high in comparison to the available housing
supply, and home purchasers often desire more amenities, developers are
able to command higher prices and often realize greater margins of profit.
2-7
Rising marketing and overhead costs have contributed to the rising costs
of housing. Inflation has spurred much of the increase in marketing and
overhead. Intense competition among developers has necessitated more
advertising, more glamorous model homes and more expensive marketing
strategies to attract buyers.
2.2.2 Governmental Constraints
Housing affordability is affected by factors in both the private and
public sectors. Actions by the City can have an impact on the price and
availability of housing in the City. Land use controls, site improvement
requirements, building codes, fees and other local programs intended to
improve the overall quality of housing may serve as a constraint to
housing development.
Land Use Controls: As indicated in the Section on Housing Opportunities,
an estimated 4,997 new residential dwelling units could be developed on
unconstrained vacant lands in Huntington Beach under the General Plan.
Additional residential development in the City will , however, be
accommodated through several other means, including development on under-
utilized residential parcels, on non-residential land, and on surplus
school sites. Considering the potential from all these sources, a total
of 7,527 additional dwelling units could be accommodated in Huntington
Beach. SCAG has estimated a future housing need of 6,228 new units in the
City through the year 1994. The Plan thus provides for a residential
development capacity which is more than adequate to serve projected future
housing demand. The Land Use Plan cannot, therefore, be interpreted as a
constraint to the provision of affordable housing, particularly since
3,676 units are designated for higher density housing (Medium High and
High Density Residential ) and can more readily be priced to meet the needs
of lower income households.
Fees and Improvements: Various fees and assessments are charged by the
City to cover the costs of processing permits and providing services and
facilities, such as utilities, schools and infrastructure. Almost all of
these fees are assessed through a pro rata share system, based on the
magnitude of the project's impact or on the extent of the benefit which
will be derived. However, these fees contribute to the cost of housing
and may constrain the development of lower priced units. The Housing
Element calls for the City to monitor all regulations, ordinances,
departmental processing procedures, and residential fees related to
rehabilitation and/or construction to assess their impact on housing
costs. The City's Senior Citizen Residential Suffix Zone establishes
reduced development standards (e.g. , parking requirements) to lessen the
cost of developing housing for the elderly.
Building Codes and Enforcement: The City of Huntington Beach has adopted
the State Uniform Building, Housing, Plumbing, Mechanical and Electrical
Codes. These codes are considered to be the minimum necessary to protect
the public health, safety and welfare. The local enforcement of these
codes does not add significantly to the cost of housing.
2-8
y ,
Local Processing and Permit Procedures: The evaluation and review process
required by City procedures contributes to the cost of housing in that
holding costs incurred by developers are ultimately manifested in the
unit's selling price. One potential way to reduce housing costs is to
reduce the time for processing permits. As review times are already
streamlined in the City, cost savings from "fast track" processing would
be minimal . Nonetheless., as land holding costs. can run over $1,000 per
unit for a 9 to 12 month period, the City is considering developing an
expedited processing procedure for residential projects with an affordable
component.
2.2.3 Environmental and Infrastructure Constraints
Portions of Huntington Beach are exposed to a variety of environmental
hazards and resources which may constrain the development of lower priced
units. In addition, deficiencies exist related to the provision of
infrastructure to service new residential development.
Floodplain: Situated on a low-lying plain and bounded by the Santa Ana
River, Huntington Beach faces significant flood hazard. Over half the
City's acreage, and approximately 70-80% of its residentially designated
acreage, falls within the Flood Hazard Zone as defined by the Flood
Emergency Management Agency (FEMA) . FEMA regulations require that all new
residential development be graded up above the 100-year flood elevation
which ranges from approximately one to 11 feet in the City. These
restrictions on development in the floodplain results in a reduction in
the number of units that can be built, increases the costs of
construction, and slows down development.
Oil Resources: Huntington Beach is historically an oil town. The
numerous oil facilities currently operating in the City serve to reduce
the amount of land currently available for development. While residential
projects can sometimes be developed around producing wells, often
development must be postponed until oil production halts and facilities
are abandoned (20 to 30 years) . The presence of oil facilities thus
reduces the amount of acreage available for development in the near future
and/or increases the cost of development.
The City's Redevelopment Agency is currently working with a private oil
company in developing an oil consolidation site in downtown Huntington
Beach. By consolidating the City's oil wells and storage tanks onto a
single site, the City's "oil lots" will be opened up for development.
Approximately 90 percent of the City's oil lots have been purchased by the
oil company, with the goal of completing the consolidation site within a
two year period.
In addition to the oil consolidation site, the City is working with
property owners to implement measures to mitigate constraints to
development on sites with remaining oil facilities. These measures
include buffering/screening existing oil islands, abandonment of oil
wells, and creation of Specific Plans.
2-9
a
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 rec6ntly completed Ellis Golden West Specific Plan provides
for necessary infrastructure improvements to be installed over the next
few years. This Specific Plan will also help to alleviate another
constraint to development in this area, fragmented land ownership.
2-10
2.3 Housing Opportunities
This section evaluates the potential additional residential development
which could occur under the City's General Plan and zoning on vacant and
underutilized land.
2.3. 1 Vacant Sites
Vacant land planned for residential development is relatively scarce in
Huntington Beach. Approximately 725 acres, or six percent, of the City' s
total 11,918 residential acres are currently vacant. Under existing
zoning and general plan designations, these residential acres could
support a maximum buildout of 7,587 additional housing units. However, as
discussed in the previous section on environmentally constrained lands,
much of the City's vacant residential land has been subject to
development constraints related to oil production and fragmented
ownerships. The City is actively working with property owners to remove
these constraints by creating an oil consolidation site, developing
specific standards to ensure compatibility between oil islands and
residential uses and through implementation of Specific Plans. Through
the City's activities, the following four areas which had previously been
constrained due to oil production activities will now be available for
residential development. These areas are illustrated in Figure 1, and
their dwelling unit capacity described below:
Area #1: This parcel is approximately 19.69 acres in size and is
designated for High Density Residential , permitting up to 35 dwelling
units per acre. While the property has been historically utilized for
oil production, the few oil wells remaining on the site are in the
process of being removed. The property owner has submitted development
plans to the City for 331 attached townhome units on the site.
Construction of these units is anticipated to begin in Spring 1990.
Area #2: The Redevelopment Agency is currently working with a private
oil company in developing an oil consolidation site in downtown
Huntington Beach. Existing oil facilities located on the 20.72-acre
Area #2 site are to be relocated on the oil consolidation site.
Existing High Density Residential zoning on the site would permit the
development of approximately 725 multi -family dwelling units on the
property.
Area #3: This area consists of approximately 47.62 acres designated as
Residential Estate Density (2 du/acre) . The site is located in the
Holly-Seacliff Master Plan area adjacent the proposed linear park.
While the area had previously been identified as constrained by oil
production, the Master Plan provides for mitigation of oil constraints,
through abandoning some wells and creating "oil islands" with remaining
on-site oil facilities. By mitigating restrictions on development,
approximately 95 single-family dwelling units will be able to be
accommodated on this site.
2-11
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FIGURk .I
PREVIOUSLY CONSTRAINED LANDS SUIFAULE FOR RESIDENTVL DEVELOPNALNT
Y
Area #4: Similar to Area #3, this 38.48 acre site is located in the
Holly-Seacliff Master Plan, which provides for mitigation of existing
oil constraints. The Master Plan designates this site for an overall
average density of seven dwelling units per acre, providing for a total
of 269 dwelling units.
Through the City's efforts, 126 acres of land which had previously been
constrained by oil production activities will be opened up to development.
This residential acreage will provide for an increase in dwelling
units, ranging from low density estate housing, to high density apartments
and condominiums.
Table 1 provides a breakdown of the number and type of additional
residential dwelling units which could be constructed in Huntington Beach
under the General Plan. Of the City's total 725 vacant residential acres,
478.8 acres can be considered unconstrained and available for development
over the five-year period of the Housing Element. This acreage will
support a maximum buildout of 4,997 dwelling units, ranging in density
from 2 to 35 units per acre. Nearly half (45 percent) of the potential
dwelling units are the Medium-High and High Density residential land use
categories, providing opportunities for lower cost housing development.
Approximately one-quarter of these potential units are designated for
Medium Density Residential , indicating a significant proportion of future
residential growth will be in the form of duplexes and townhomes and lower
density apartments and condominiums. Single-family homes will comprise
approximately one-quarter of the City's future residential growth. A
recently-adopted Specific Plan for the Ellis West area will serve as a
vehicle for consolidating land ownerships, providing for approximately 600
residential estate dwelling units.
2.3.2 Underdeveloped Sites
In addition to development on vacant lands, there is the potential for new
residential development on sites which are currently developed at
densities lower than those permitted under the General Plan and zoning.
In the Townlot, Oldtown and Downtown areas, many of the areas designated
for densities of 15 units/acre are currently developed with single-family
and lower density multi -family uses. Recycling of these lower density
uses occurs when the intensity of use allowed in the zone more than
offsets the costs of acquiring the improved site, demolishing the existing
units, and constructing new higher density units. For the past several
years, substantial recycling activity has been occurring in the Townlot,
Oldtown and Downtown areas indicating that permitted densities are high
enough to warrant recycling. Interestingly, while City zoning permits
densities up to 15 units per acre in these areas, the market demand for
single family homes has resulted in the majority of replacement units
developed as single-family detached units. Single-family residential uses
in the Townlot, Downtown and Oldtown areas are predominately developed on
50' x 115' and 25' x 115' sized lots. The recycling trend in these areas
2-13
.• 4
TABLE 1
CITY OF HUNTINGTON BEACH
VACANT LANDS SUITABLE FOR RESIDENTIAL DEVELOPMENT: 1989
Total Unconstrained
Vacant Potential Vacant Potential Total
Land Use Catagory Acreage DUs Acreage DUs DUs
Residential Estate 222.0 724 182.6 605 12%
(2-4 du/ga)
Residential Low Density 98.39 688 86.41 605 12%
(7 du/ga)
Residential Medium Dens. 159.73 2,407 77.91 1 , 169 24%
(15 du/ga)
Residential Medium-High 17.55 439 17.55 439 9%
(25 du/ga)
Residential High Density 62.05 2, 172 62.05 1,813 36%
(35 du/ga)
Planned Community 165.28 1 ,157 52.28 366 7%
(7 du/ga)
TOTAL 725.00 7,587 478.8 4,997 100%
Source: City of Huntington Beach Community Development Department,
January 1989.
2-14
d
has been to demolish the existing single-family structure, and replace the
unit with either two or three single-family units. Table 2 illustrates
the level of recent recycling activity, with 43 single-family units
demolished .in these areas in 1988, and 26 in the first six months of 1989.
In order to estimate the net increase in residential development
attributed to recycling over the five year period of the Housing Element,
recycling activity over the past 18 months can be applied to the 1989-1994
period. Replacement units can be conservatively estimated at a ratio of
two-to-one, although it is likely many single units will be replaced at a
three-to-one ratio. Based on these assumptions, it is estimated that the
City will experience an annual recycling of 47 existing units, to be
replaced with a total of 94 new units. Applying this annual recycling
rate to the five year period of the Housing Element translates to an
estimated net increase in 235 single family units which can reasonably be
expected to develop during the 7/89 - 6/94 period. It should be
mentioned, however, that many of the older residences in these areas are
identified as historically significant on a local survey, and their
removal would need to be addressed under CEQA.
TABLE 2
CITY OF HUNTINGTON BEACH
RESIDENTIAL RECYCLING ACTIVITY
(OLDTOWN, TOWNLOT, AND DOWNTOWN AREAS)
Sinqle-Family Units Recycled to Higher Densities
1988 Jan-June 1989
Oldtown 8 8
Townlot 32 17
Downtown 3 1
Total 43 26
Source: City of Huntington Beach
Community Development Department
2-15
. y
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 -if
understanding on the Bolsa Chica Environmental Impact Statement (EIS) was
approved by Council at their meeting of October 16, 1989.
Property owners in the Bolsa Chica area are limited to Signal Landmark
Inc. , State Lands Commission, and the Metropolitan Water District; all
have been supportive of annexation to the City. The anticipated time
frame for annexation includes completion of. the Final EIS by Fall 1990,
with annexation to occur in late 1990 or early 1991 . Development is
expected to occur within 312 years and will include a minimum of 3800 and a
maximum of 5700 residential units. A coalition representing five interest
groups (Orange County, State Lands, property owner Signal Landmark, Inc. ,
a citizens interest group Amigos de Bolsa Chica, and the City) is
projecting approximately 4400 residential units; Figure 2 provides a
conceptual plan of development in the Bolsa Chica as proposed by the
coalition. The actual number of units is uncertain at this time because
the cost of restoring the approximately 1100 acres of wetlands is not
known. Some fundin- may be available from the Los Angeles and Long Beach
ports as a result or wetland mitigation requirements. Should this funding
materialize, the restoration costs to the major landowner (Signal
Landmark, Inc. ) would be reduced, thereby allowing development of fewer
units.
City services appear adequate to serve the project development and the City
is participating in the Bolsa Chica traffic modeling project to 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
Golden West Specific Plan provides for necessary improvements to be
installed over the next few years. This Specific Plan will also help to
alleviate another constraint to development in this area, fragmented land
ownership.
2-18
RESIDENTIAL DENSITIES
--�UP TO 6.5 DU/AC --
- UP TO 12.5 DU/ACJINEA
r P
UP TO 18.0 DU/AC PARK /
. ,,®i
ESHA
WETLANDS -
ACREAGE SUMMARY .� I � . , f�. � ESHA / �\ •�
Lp-z (�
ij-
LAND USE TYPE ACRES t \\ ' 4, � -� OPEN SPACE
RESIDENTIAL 412.3 r'��_;.\. �
VIE EA PARR/HA/OPEN SPACE 1104.9
lIN!EM PARKJESHA. r 50.9
OES!G!4F.,ED ROADWAYS 53.7 -:�51"•�?:;�5'4 s----_,J
FLOOD CUNTR()L CHANNEL
TOTAL 1635.0 /�-
�� 'a' i/C WETLANDS
ESHA /
C. I�//. OPEN SPACE
WETLANDS ESHA / OPEN SPACE
WETLANDS
: ESHA / _
- w.
�.OPEN
SPACE
Y / LINEAR
PARK
ESHA
: :�
WETLANDS / ESHA / OPEN SPACE77
r _ _
-
�_„_„W:��•�:; � jNON-NAVIGABLE`
OCEAN CONNECTION
SOURCE: VALE SPECK TAYLOR PACIFIC OCEAN. PACIFIC OCEAN
rChCl North. — --K
FIGURE 2
DOLSA CHICA RESIDENTIAL,D.EVEIOPMENT PLAN
2.3.9 Residential Development Potential Compared with Huntington Beach's
Housing Needs
As indicated in Section 3.4 of the Housing Element, the Regional Housing
Needs Assessment (RHNA) prepared by SCAG has identifed a future housing
need for Huntington Beach of 6,228 units to be developed over the next
five years (1989-1994) . Combining the residential development potential
on vacant, underutilized, redevelopment, non-residential and surplus
sites, an estimated 7,527 additional units(a) could be developed in the
City (refer to Table 3) . This would indicate that the City's General Plan
and zoning provide for a residential development capacity which is
adequate to accommodate the City's share of regional housing needs. In
addition, with annexation of the Bolsa Chica, an estimated 3,800 to 5,700
additional dwelling units could be accommodated in Huntington Beach.
In terms of development opportunities for lower income households,
approximately half of potential residential growth is allocated to higher
density housing (Medium-High and High Density Residential ) , which can more
readily be priced to meet the needs of Very Low and Low Income households.
However, even at these higher densities, the City will need to offer
incentives to private market developers to ensure the provision of units
affordable to Very Low and Low Income households . Condominium units will
provide homeownership opportunities for some smaller, Moderate Income
households though ownership assistance will still be necessary to provide
many of the City's Moderate Income households the option of home purchase.
(a) The ultimate buildout potential in the City is approximately 10,000
additional dwelling units, reflecting the approximate 2,500 units
constrained from development over the next five years.
2-20
M +
TABLE 2
CITY OF HUNTINGTON BEACH
POTENTIAL RESIDENTIAL DEVELOPMENT SUMMARY
RESIDENTIAL DWELLING UNIT POTENTIAL
Under
Land Use . Vacant utilized Second Redevelop- Non-Resi- Surplus
Category Land Land Units ment Areas dential Land Land TOTALS
Residential 605 14 619
Estate
Residential 605 235 25 232 1,097
Low Density
Residential 1, 169 600 1,769
Medium
Density
Residential 439 103 542
Medium-High
Density
Residential 1 ,813 801 520 3, 134
High Density
Planned 366 366
Community
TOTALS 4,997 2.35 25 904 600 766 7,527
2-21
a 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.
4
The following section provides .an overview of the specific program goals
from the Huntington Beach 1984 Housing Element, and an assessment of the
actual accomplishments under these programs during the 1984-1989 period .of
the Housing Element. These programs are organized around the five major
issue areas addressed in the Housing Element.
ISSUE #1- ACCESSIBILITY
Program: Aid in the production of 164 senior citizen units in the
Talbert-Beach redevelopment area through land acquisition and write-down.
Accomplishment: In 1985, the Huntington Beach Redevelopment Agency, in
partnership with a private developer, completed Emerald Cove senior
housing project. The project consists of 164 apartment units at 50
percent below market rental rates. This project received a National
Certificate of Merit from the U.S. Department of Housing and Urban
Development for public/private partnerships.
Program: Develop City standards to implement new State and Federal laws
for handicapped accessibility in new developments.
Accomplishment: The City has adopted the State Uniform Building and
Housing Codes which incorporate State requirements for handicapped
accessibility.
Program: Provide $1500 grants to owners of rental housing to make units
accessible to the physically handicapped.
Accomplishment: Only four grants were issued during the 1984-1989 period.
More creative and intense marketing appears to be needed to increase
participation.
3-1
r y
ISSUE #2 - ADEQUATE PROVISION
Program: Provide tax-exempt single-family and multi -family mortgage
revenue bonds to facilitate the development of affordable units.
Accomplishments: On a City-wide basis, the City issued single-family
mortgage revenue bonds in the amount of $4,660,000 in 1984 to finance 55
moderate income home purchases. In addition, six multi -family projects,
with a total of 402 units affordable to lower income households have been
completed.
Program: Consider the reduction or waiver of development fees for
projects participating in an affordable housing program.
Accomplishments: The City. has assumed development fees on one
Redevelopment Agency sponsored project for the provision of affordable
housing.
Program: Continue to contract with the Orange County Housing Authority to
provide Section 8 rent subsidies to lower income households.
Accomplishments: According to the Housing Authority, Huntington Beach has
been one of the more aggressive communities in the region pursuing needed
rental subsidies. As of March 1989, the City had secured a total of 577
housing vouchers and certificates. Huntington Beach is the only city in
Orange County that participates in Project Self-Sufficiency, a program
which offers housing vouchers to low-income single parents who are either
currently homeless, or at risk of becoming homeless.
Program: Review development standards to determine which ones can be
relaxed in order to reduce housing costs, and process appropriate code
revisions.
Accomplishments: Code revisions have been adopted which institute senior
development standards with reduced minimum unit sizes and reduced parking
requirements.
Program: Revise the multi-family zoning ordinance to reduce required
recreation space and common open space in smaller projects.
Accomplishment: As the City wishes to maintain a minimum level of
recreational and open space amenities in all multi-family projects, this
program is no longer being pursued. Code revisions have been adopted for
senior housing developments to allow greater flexibility in the location
. of required open space.
ISSUE #3 - ADEQUATE SITES
Program: Review Division 9 of the City Municipal Code to ensure it
reflects Housing Element policies and programs.
3-2
Accomplishments: The City is beginning a comprehensive rewrite to
Division 9 of the Municipal Code; appropriate revisions and
housing-related ordinances will be incorporated into the Code at this time
to reflect Housing Element policies . and programs. .
Program: Investigate the feasibility of using vacated school and park
sites and other publicly owned land for affordable housing.
Accomplishment: Irby Park is being reviewed as a potential site for
affordable housing through the 20% set-aside program. In addition,
the City is working with a private developer to construct a housing project
on a closed school site, a portion of the units which would be set aside for
low and moderate income households.
Program: Evaluate land use and zoning designations to determine where
increased densities can be utilized to provide for affordable housing.
Accomplishment: The City reviews on an on-going basis the potential for
density increases for affordable housing projects on vacant and infill
sites as they are presented to the City by developers.
ISSUE #4 - PRESERVING HOUSING AND NEIGHBORHOODS
Program: Continue to make available low interest rehabilitation loans for
low-income owner-occupied housing, with a program goal of 25 loans
annually.
Accomplishment: Approximately 226 owner-occupied rehabilitation loans have
been made since 1984, primarily concentrated in the City's designated
target areas: Oakview, Commodore Circle, South Shores, Liberty and
Downtown/Oldtown.
Program: Enhance and preserve the multi-family housing stock within the
Oakview neighborhood.
Accomplishment: Thirty loans were made since adoption of the 1984 Housing
Element in the Oakview neighborhood, for a total rehabilitation of 120
units.
Program: Provide low interest rehabilitation loans to investor-owners of
multi-family rental housing in targeted revitalization areas, with the
goal of rehabilitating 35 units per year.
Accomplishment: This goal has been met and exceeded with an average of 50
units rehabilitated per year within the designated target areas.
Program: Develop and implement a comprehensive improvement program for
Commodore Circle, with the goal of rehabilitating 80 units and initiating
occupancy and maintenance standards.
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Accomplishment: This program has been completed since adoption of the 1984
Housing Element. All substandard units have been rehabilitated, public
improvements have been completed, and all owners have executed a
maintenance agreement with the City.
Program: Develop and implement a City-wide maintenance ordinance.
Accomplishment: The City has recently expanded its code enforcement
program to encompass property maintenance violations, and has increased
the number of code enforcement officers to four to more adequately address
code complaints.
ISSUE #5 - PRESERVING AFFORDABILITY
Program: Oversee the continued affordability of low and moderate income
units produced with tax exempt financing.
Accomplishment: The City has hired a consultant to develop a monitoring
program to ensure the continued affordability of low and moderate income
units for which public subsidy has been provided. Once in place,
bi-annual monitoring will be conducted to verify the income of the tenant,
and to verify the continued affordability of the unit.
Program: Prepare a condominium conversion ordinance to regulate the
conversion of rental housing to ownership units in order to mitigate
impacts on affordable rental housing.
Accomplishment: The 'City adopted its condominium conversion ordinance in
November 1984 which requires converted 'units to conform to the
requirements of the City's Planned Unit Development (PUD) Ordinance.
Since most existing multi -family housing units have been developed to
standards that generally require substantially less open space and parking
than that required under the PUD Ordinance, these requirements serve as a
significant disincentive for condominium conversion.
Program: Continue to' pursue the production of affordable housing.
Accomplishments:. The City has participated in numerous affordable housing
developments since adoption of its 1984 Housing Element. They have utilized
a combination of City incentives, such as density bonus and bond financing,
combined with outside funding sources to achieve a total of 391 affordable
units. Specific publicly-assisted residential projects with an affordable
housing component developed since adoption of the 1984 Housing Element
include the following:
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TABLE 4
AFFORDABLE HOUSING DEVELOPMENTS
CITY OF HUNTINGTON BEACH: 1984-1989
NAME LOCATION UNITS
TOTAL/LOW MOD
Brisas Del Mar 409 Utica 44/8
Corona 7916 Stark 8/1
7924 Stark 8/1
7891 Holt 8/1
7901 Holt 8/1
Emerald Cove Talbert & Jolly Lane 164/164
(seniors)
Gustine Yorktown & Huntington 21/4
Harbor Gateway Warner & Green 102/31
Hartfelter Newland & Slater 8/1
Huntington Bayshore Lake &Atlanta 159/34
Huntington Village 16171 Springdale 114/27
(seniors)
Ratsui 5081 Dunbar 6/1
Rivermeadows 8945 Rivermeadows 152/31
Seabridge Villas 20251 Cape Coral Lane 344/69
Stellrecht 16032 Springdale 61/12
Villa Corsica 19th & Walnut 18/4
Waldman 17230 Elm 7 1
TOTAL 1 232 391
Program: Create and maintain an inventory of sites potentially suitable
for affordable housing and refer these to private developers.
Accomplishments: The City's Economic Development Department has developed
an inventory of potential sites for affordable housing, including vacant
lands, park and school sites. In addition, the Planning Department
conducted a comprehensive vacant lands inventory in April 1988 which can
be utilized to identify additional sites for afforable housing.
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3.2 Goals, Policies, and Program Actions
Background
The City of Huntington Beach adopted a series of goals and policies as
part of its 1984 Housing Element to guide the development and
implementation of its housing program. As part of the current Housing
Element update, these adopted goals and policies have been evaluated in
. terms of their effectiveness and actual results in implementation. In
addition, the adopted goals and policies were reviewed as to their .
appropriateness in addressing the housing needs identified in this Housing
Element update.
The following goals and policies reflect a revision to those previously
adopted to incorporate what has been learned from the prior element, and
to adequately address the community's identified housing needs. These
goals and policies will serve as a guide to City officials in daily
decision making.
Housing Program
The City of Huntington Beach has adopted three goals for its housing
program which are consistent with State and Regional housing policies.
These goals are.:
1 . The attainment of decent housing within a satisfying living
environment for households of all socioeconomic, racial , and ethnic.
- groups in Huntington Beach.
2. The- provision of a variety of housing opportunities by type, _ tenure,
and cost for households of all sizes throughout the City.
3. The development of a balanced residential environment with access to
employment opportunities, community facilities, and adequate services.
In order to progress toward the attainment of these goals, the City has
committed itself to specific policies and programs. The policies are
organized around five issue areas which are identified by the California
Department of Housing and Community Development as important priorities in
addressing local housing problems. This section presents a discussion of
the problems inherent in each of the issue areas, followed by policies
adopted by the City to resolve these problems. The program actions
intended to effect their solution then are discussed, including
anticipated impacts, responsible agencies, funding source, and the time
frame for completion of each program. In aggregate, the Element's program
actions set forth the following five year housing goals, as detailed in
Table 4A:
Total Units to be Constructed: 7,527 total units/675-750 assisted
Total Units to be Rehabilitated: 530
Total Units to be Conserved: 965 - 1,015
A comprehensive discussion of the existing and proposed programs of the
Housing Element is contained in Section 3.6.
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TABLE 4A
HOUSING ELEMENT PROGRAM SUMMARY
Number of Units
Program Action to be Assisted
New Construction: 1 .2 200
2.2 50-100
2.9 300
2.13 125-150
Total 675-750
Rehabilitation: 1 .5 10
1 .6 10
4.2 250
4.3 100
4.4 80
4.6 80
Total 530
Conservation: 2.5 815
2.12 150-200
Total 965-1,015
3-6.1
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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 maybe 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.
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Responsible Agencies: Huntington Beach Economic Development
Department (EDD) .
Funding Source: CDBG funds.
Schedule: Ongoing.
1.2 Action: The City will continue to make available Redevelopment
Agency-owned property within the. Talbert-Beach redevelopment area for
the construction of senior citizen and/or low and moderate income
housing. Provide for reduced development standards through use of
the City's Senior Residential Suffix zoning.
Anticipated Impact: Aid in production of up to 200 units for senior
citizen and affordable housing.
Responsible Agencies: Huntington Beach EDD/Redevelopment Agency.
Funding Source: Redevelopment Set-Aside Fund.
Schedule: Based on final acquisition of parcels.
1 .3 Action: Implement state and federal laws for access and adaptability
for the physically handicapped. Continually adopt updates to the
State Uniform Building and Housing Codes to reflect current
accessibility requirements.
Anticipated Impact: More locational choice for the physically
handicapped due to an increase in the supply of suitable rental
units.
Responsible Agencies: Huntington Beach EDD and Community Development
Department (CDD) .
Funding Source: None necessary.
Schedule: Ongoing.
1 .4 Action: Continue to coordinate with and financially support the
Doyle MacIntosh Center to maintain a directory of accessible housing
for handicapped persons.
Anticipated Impact: Assistance to handicapped persons in locating
housing.
Responsible Agencies: Huntington Beach EDD and the Dayle MacIntosh
Center.
Funding Source: CDBG funding.
Schedule: Ongoing.
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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.
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GOAL 2.0 ADEQUATE PROVISION
Adequate provision for the housing needs of all economic segments of the
community is an issue of the highest priority in Huntington Beach. For
reasons previously discussed, it appears unlikely that market forces alone
will produce enough housing that is affordable to low and moderate income
households to meet expected needs. Since decent housing for all is
important to the welfare of the entire city, it is particularly important
to address this need through the use of those public powers which impact
housing.
2.0 Policies
To ensure adequate provision of housing for all economic segments of the
community, the City of Huntington Beach shall :
° Encourage the provision and continued availability of a range of
housing types throughout the community, with variety in the number of
rooms and level of amenities.
• Encourage both the private and public sectors to produce or assist in
the production of housing with particular emphasis on housing
affordable to lower income households, as well as the needs of the
handicapped, the elderly, large families and female-headed households.
° Utilize density bonuses and other financial incentives where feasible
to encourage the production of low and moderate income housing.
Provide rental assistance vouchers, as available, for some or all of
the affordable units provided.
° Take advantage of existing infrastructure and public improvements to
provide additional affordable housing by allowing second units in
single-family zoning districts.
• Facilitate the development of mixed-use projects containing
residential and non-residential uses which can take advantage of
shared land costs to reduce the costs of land for residential uses
through General Plan designation and the Specific Plan process.
° Encourage alternative forms of homeownership, such as shared equity
ownership and limited equity cooperatives and housing arrangements,
such as Shared Living Units, to encourage affordability.
° Encourage the development of childcare facilities coincident with new
housing development through conditions on project approval at the CUP
or EIR level , and review the City's Zoning Ordinance to identify any
unnecessary restrictions related to the provision of family day care
and childcare facilities in residential zones.
° Promote adoption of development standards which reduce housing costs.
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° Review all regulations, ordinances, departmental processing procedures,
and residential fees related to rehabilitation and/or construction to
assess their impact on housing costs, and revise as appropriate.
• Provide the management and personnel resources necessary to carry out
identified housing programs and responsibilities.
° Continue and expand utilization of Federal and State housing
assistance programs.
° Promote the availability of sufficient rental housing to afford maximum
choice of housing type for all economic segments of the community.
community.
° Review the City's condominium conversion ordinance, and consider
revising to allow modified requirements for units which are set aside
for low and moderate income households.
• Encourage the retention of adequate numbers of mobile homes and
investigate areas for potential new mobile home zoning.
• Continue to enforce the City's mobile home conversion ordinance.
° Continue to coordinate with local social service providers and notify
of available City funding to address the needs of the City's homeless
population.
° Encourage the provision of alternative housing through replacement
housing and/or relocation for low or moderate income households
displaced by public or private developments.
° Ensure that any adverse impacts are minimized when increasing
densities or relaxing standards in order to provide for low and
moderate income housing.
° Investigate the development of single room occupancy (SRO) hotels
to provide housing opportunities for very low income residents.
2.0 Programs
2. 1 Action: Apply to the State Mortgage Bond Allocation Committee for
single-family bond allocations to enable below market rate financing
to be offered on qualifying projects to moderate income households.
Anticipated Impact: Make a greater share of housing stock affordable
to first-time buyers.
Responsible Agencies: Huntington Beach EDD.
Funding Source: Bond revenue.
Schedule: Ongoing.
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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.
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Funding_Source: Huntington Beach EDD Administrative funds/OCHA,
potential use of Redevelopment Set-Aside to augment rental subsidies.
Schedule: Ongoing.
2.6 Action: Continue to contract with the Orange County Housing
Authority to screen and verify incomes of potential participants in
housing programs.
Anticipated Impact: Ensure that recipients of affordable housing are
qualified for such housing.
Responsible Agencies: Huntington EDD/OCHA.
Funding Source: Huntington Beach EDD Budget.
Schedule: Ongoing.
2.7 Action: Review development standards, such as minimum size, open
space, parking, to determine which ones can be relaxed in order to
reduce housing cost; process appropriate code revisions as part of
the zoning ordinance update.
Anticipated Impact: Reduction in the cost of housing.
Responsible Agencies: Huntington Beach CDD.
Funding Source: Department Budget.
Schedule: 1989-90.
2.8 Action: Evaluate the feasibility of developing a specific procedure
for fast track processing projects with an affordable housing
component.
Anticipated Impact: Reduction in holding costs for affordable
housing projects, thereby improving the economic feasibility of such
projects.
Responsible Agencies: Huntington Beach CDD and EDD.
Funding Source: Department Budgets.
Schedule: 1989-90.
2.9 Action: Continue to provide tax exempt mortgage financing for new
multi-family housing.
3-13
Anticipated Impact: Increased supply of rental housing stock
affordable to lower income households. Based on previous levels of
developer participation, the City's goal is to provide mortgage
financing for three projects (estimated 300 units) over the next five
years.
Responsible Agencies: Huntington Beach EDD/Redevelopment Agency.
Funding Source: Tax exempt financing.
Schedule: Ongoing as projects meet criteria.
2. 10 Action: Continue to operate Project Self-Sufficiency to address the
needs of low income, single parents by offering rental assistance,
job training,and other needed services.
Anticipated Impact: Curtail additional single parent households
from becoming homeless.
Responsible Agencies: Huntington Beach EDD.
Funding Sources: CDBG funds, private donations, Redevelopment Set-
Aside.
Schedule: Ongoing.
2.11 Action: Continue to offer financial assistance to local groups which
provide services to the area's homeless population. Provide public
notification of the availability of funds through newspaper
advertisements, as well as direct notification to local service
providers.
Anticipated Impact: Address the needs of the City's homeless through
provision of 15% of the City's CDBG budget for social services.
Responsible Agencies: Huntington Beach EDD.
Funding Source: CDBG funds, Redevelopment Set-Aside.
Schedule: Ongoing.
2.12 Action: Actively market the City's shared housing program to
increase the number of roommate matches. made between senior citizens.
Utilize the City's Public Information Office to advertise the program
through such methods as Public Television and placement of brochures
in local community centers. Investigate developing a pilot project
to match residents of varying age categories which links up with
Project Self-Sufficiency.
3-14
Anticipated Impact: Provide expanded opportunities for seniors to
remain in their homes, while providing affordable housing options for
seniors who do not own a home. Goal is to provide for 30-40 roomate
matches per year.
Responsible Agencies: Community Services Department, Huntington
Beach EDD.
Funding Source: Department Budgets.
Schedule: 1990.
2. 13 Action: Develop and implement a shared equity program to provide
down payment assistance to qualifying low and moderate income first
time homebuyers.
Anticipated Impact: Provide homeownership opportunities for 25-30
low and moderate income first time homebuyers annually.
Responsible Agencies: Huntington Beach EDD.
Funding Source: Redevelopment Set-Aside.
Schedule: Establish program within one year.
2. 14 Action: Continue to provide for the housing needs of large families
through the provision of a) rent certificates for larger units to
accommodate overcrowded households as part of the Rental Rehab
Program, and b) single-family rehabilitation loans for• room
additions to alleviate unit overcrowding.
Anticipated Impact: Provide adequately sized affordable housing which
meets the needs of the City's large families.
Responsible Agencies: Huntington Beach EDD and Orange County Housing
Authority.
Funding Source: CDBG funds and Section 8 certificates/vouchers.
Schedule: Ongoing.
2. 15 Action: Review the City's Zoning Ordinance to identify any
unnecessary restrictions related to the provision of family day care
and childcare facilities in residential zones.
Anticipated Impact: Enhanced opportunities for day care, providing
needed services to female-headed and family households.
3-15
Responsible Agencies: Huntington Beach CDD.
Funding Source: Department Budgets.
Schedule: 1989-90.
2. 16 Action: Investigate the use of specific plans to promote a balance
of housing and open space, and to reduce the per unit cost of housing
through such methods as clustered housing, zero lot line on smaller
lots, flexible setbacks, reduced parking standards and lot sizes.
Anticipated Impact: Reduced housing development costs and associated
decreases in sales/rental prices.
Responsible Agencies: Huntington Beach CDD.
Funding Source: Department Budgets.
Schedule: 1989-90.
2. 17 Action: Investigate the feasibility and a possible ordinance to
permit Single Room Occupancy (SRO) hotels as a mechanism for providing
affordable housing.
Anticipated Impact: Facilitate the development of SROs.
Responsible Agency: Huntington Beach CDD.
Funding Source: Department Budgets.
Schedule: Complete study and prepare a report within one year.
2.18 Action: Encourage developers to pursue "gap" financing from the
Orange County Housing Authority for residential projects offering
affordable units.
Anticipated Impact: Increase the supply of affordable housing by
offering financial assistance to project developers.
Responsible Agency: Huntington Beach CDD.
Funding Source: Orange County Housing Authority.
Schedule: Ongoing.
3-16
GOAL 3.0 STANDARDS AND PLANS FOR ADEQUATE SITES
A key element in satisfying the housing needs of all segments of the
community is the provision of adequate sites for housing of all types,
sizes, and prices. This is an important function of both zoning and
General Plan land use designations. Since the City is already developed
to a large extent, provision for future housing needs may require the
rezoning of some areas where appropriate to meet housing needs and where
economically feasible in terms of City facilities and services. An
assessment of the adequacy of sites must include the collective capacity
of sites community-wide as well as the suitability of individual sites for
non-market rate housing.
3.0 Policies
To assure the adequate provision of sites for housing, the City of
Huntington Beach shall :
° Utilize the following general criteria for identifying and evaluating
potential sites for low and moderate cost housing and sites for the
elderly and/or handicapped. While compliance with the following
criteria is preferable, no site shall be dismissed for failure to meet
this criteria and shall be judged on its own merit. Sites should be:
- located with convenient access to arterial highways and public
transportation, schools, parks and recreational facilities, shopping
areas, employment opportunities.
- adequately served by public facilities, services, and utilities.
- minimally impacted by seismic and flood hazards. Where such hazards
cannot be avoided, adequate mitigation measures shall be
incorporated into the design of all proposed development.
- minimally impacted by noise and blighted conditions.
- compatible with surrounding existing and planned land uses.
- located outside areas of predominantly lower income concentrations.
° Plan for residential land uses which accommodate anticipated growth
from new employment opportunities.
• Locate residential uses in proximity to commercial and industrial
areas and transportation routes to provide convenient access to
employment centers.
° Promote the rezoning of vacant or recyclable parcels of land to higher
densities where compatible with surrounding land uses and available
services in order to lower the cost of housing.
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° Utilize surplus park and/or school sites for residential use where
appropriate and consistent with the City's General Plan.
° Permit the development of manufactured housing in single-family zones,
and accommodate the development of mobilehome parks through the City's
Manufactured Housing Overlay Zone.
3.0 Programs
3.1 Action: Maintain an inventory of vacant land in the City and make
available to interested parties for use in identifying potential
residential development sites.
Anticipated Impact: Provide information which may expedite
identification of residential development opportunities in the City.
This may in turn expedite the consolidation of fragmented ownerships
and the development of housing.
Responsible Agencies : Huntington Beach CDD.
Funding Source: Department Budgets.
Schedule: Ongoing.
3.2 Action: Review Division 9 of the City Municipal Code to ensure it
reflects Housing Element policies and programs while maintaining
adequate standards for development.
Anticipated Impact: Ensure consistency in carrying out the housing
program while maintaining quality development.
Responsible Agencies: Huntington Beach CDD.
Funding Source: Department budget.
Schedule: 1989-90.
3.3 Action: Monitor changes in industrial and commercial land uses to
assess their impact on residential land use.
Anticipated Impact: This action is intended to reflect changing
conditions in the city in order to adequately respond to current
housing needs.
Responsible Agencies: Huntington Beach CDD.
Funding Source: Department budget.
Schedule: Ongoing.
3-18
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.
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3.7 Action: Continue to work with property owners in the Holly-Seacliff
Master Plan area to address various land use issues, including the
redesignation of non-residential lands to residential uses, subject
to the procedures required under State law.
Anticipated Impact: Increase in the available land inventory for
residential construction, providing for an additional 1 ,000 - 1 ,700
residential dwellings.
Responsible Agencies: Huntington Beach CDD.
Funding Source: None necessary.
Schedule: 1990.
3-20
GOAL 4.0 PRESERVING HOUSING AND NEIGHBORHOODS
The State of California has made housing preservation and conservation a
high statewide priority. While most of the City's housing stock is less
than 20 years old and in good condition, several neighborhoods contain
significant levels of housing deterioration. These neighborhoods include
the Washington, Oakview, Liberty, Commodore, South Shores, Oldtown and
Townlot communities. Through its Community and Neighborhood Enhancement
Program, the City offers low interest rehabilitation loans as an incentive
for unit upgrading.
4.0 Policies
In order to preserve housing and neighborhoods, the City of Huntington
Beach shall :
° Encourage the maintenance and repair of existing owner-occupied and
rental housing to prevent deterioration of housing in the city.
° Encourage the rehabilitation of substandard and deteriorating housing
where feasible.
° Where possible, take action to promote the removal and replacement of
those substandard units which cannot be rehabilitated.
• Provide and maintain an adequate level of community facilities and
municipal services in all community areas.
• Improve and upgrade community facilities and services where necessary.
° Encourage compatible design to minimize the impact of intensified
reuse of residential land on existing residential development.
4.0 Programs
4.1 Action: Review all changes in planned land uses to determine the
cumulative impact on community facilities.
Anticipated Impact: The assurance of adequate levels of community
facilities and services to all areas of the city.
Responsible Agencies: Huntington Beach CDD and Department of Public
Works.
Funding Source: Department budgets.
Schedule: Ongoing.
3-21
4.2 Action: Continue to make available low interest rehabilitation loans
for low-income owner-occupied housing.
Anticipated Impact: Rehabilitation of deteriorated housing in the
City and preservation of existing single-family housing stock. The
program goal is 50 units per year with a maximum loan .of $15,000 per
unit.
Responsible Agencies: Huntington Beach EDD.
Funding Source: CDBG funds, Redevelopment Set-Aside.
Schedule: Ongoing.
4.3 Action: Continue to enhance and preserve the multi -family housing
stock within the Oakview neighborhood.
Anticipated Impact: Rehabilitation of substandard four-plex units in
the Oakview neighborhood, combined with rental assistance to assure
affordability. The five year goal is for rehabilitation of 100 units.
Responsible Agencies: Huntington Beach EDD/Redevelopment Agency.
Funding Source: HUD Rental Rehabilitation Program; Section 8 housing
vouchers.
Schedule: Ongoing.
4.4 Action: Within selected target areas, provide low interest
rehabilitation loans to investor-owners of multi-family rental
housing.
Anticipated Impact: Rehabilitation of deteriorating multi -family
housing and the preservation and enhancement of rental housing stock
occupied by low and moderate income households. Goal of 16 units per
year.
Responsible Agencies: Huntington Beach EDD.
Funding Source: CDBG Loan Pool , new CDBG funds, and Redevelopment
Set-Aside.
Schedule: Ongoing.
4.5 Action: Monitor housing conditions in neighborhoods considered
marginal or at risk for deteriorated conditions in order to identify
the need to expand existing rehabilitation programs.
Anticipated Impact: The prevention of deterioration in marginal
neighorhoods.
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Responsible Agencies: Huntington Beach EDD and CDD.
Funding Source: EDD Administrative funds.
Schedule: Ongoing.
4.6 Action: Continue to implement the comprehensive improvement plan for
Commodore Circle.
Anticipated Impact: Rehabilitation of 80 units and initiation of
occupancy and maintenance standards.
Responsible Agency: Huntington Beach EDD.
Funding Source: CDBG funds; Redevelopment Set-Aside.
Schedule: Rehabilitation and public improvements complete in 1989.
Maintenance standards complete in 1990-1991 .
4.7 Action: Continue to enforce the City's code enforcement program,
including property maintenance inspections.
Anticipated Impact: Provide an enforcement tool to insure uniform
maintenance consistent with the standard prevalent in the community.
Responsible Agency: Huntington Beach CDD.
Funding Source: Department Budget.
Schedule: Ongoing.
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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.
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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.
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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.
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5.6 Action: Meet and consult with mobile home owners who are potential
displacees from mobilehome parks which intend to convert to other
uses.
Anticipated Impact: Assessment of impacts and preparation of
strategies to address needs of displacees.
Responsible Agencies: Huntington Beach CDD and Redevelopment Agency.
Funding Source: Department Budgets.
Schedule: Ongoing.
5.7 Action: Provide financial assistance for relocation of persons
displaced by redevelopment activities, including occupants of mobile
homes.
Anticipated Impact: Mitigation of adverse impacts on displaced
residents.
Responsible Agency: Huntington Beach EDD.
Funding Source: Redevelopment Tax Increment.
Schedule: Ongoing.
5.8 Action: Continue to monitor and assure replacement of low and
moderate income housing which is demolished or converted in the
Coastal Zone.
Anticipated Impact: Conservation of affordable housing in the
coastal zone through replacement requirements.
Responsible Agency: Huntington Beach CDD.
Funding Source: Department Budgets.
Schedule: Within one year.
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GOAL 6.0 ENERGY CONSERVATION
Reducing expenditures for energy can result in effective reductions in
housing expense, since the costs of utilities are part of overall housing
costs. The City does, therefore, want to encourage more efficient use of
energy to promote private benefits (less expensive utility bills). and
public benefits (reduced reliance on imported fuel ) .
6.0 Policies
° Encourage the use of energy conservation devices and passive design
concepts which make use of the natural climate to increase energy
efficiency and reduce housing costs .
° Consider developing retrofit ordinances requiring attic insulation and
weatherstripping to be implemented at the time of resale or
improvements to the dwelling.
• Investigate the feasibility of the use of renewable energy sources
(solar and geothermal ) for hot water, space, and pool heating of
larger housing developments.
° Encourage CC&Rs that protect solar access in new development.
° Continue to encourage alternative forms of transit such as buses,
bicycles, and walking.
6.0 Programs
6.1 Action: As part of the update of Division 9 of the City Municipal
Code, incorporate development standards which specify required energy
conservation features for residential development.
Anticipated Impact: Reduced energy consumption in residential
projects.
Responsible Agency: Huntington Beach CDD.
Funding Source: Department Budgets.
Schedule: 1989-1990.
6.2 Action: Review the City's zoning and subdivision regulations, EIR
and site plan review guidelines, and municipal landscaping policies
and revise as appropriate to address the issue of solar access.
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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.
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3.3 Housing Assistance Plan
Housing Assistance Plans (HAPs) are required for jurisdictions in 'the
Community Development Block Grant (CDBG) Program. The HAP details the
programs and projects to be supported by the CDBG program as implemented
through the Federal Department of Housing and Community Development (HUD)
and approved by City Council . Housing assistance includes rehabilitation
of substandard units and rental subsidies for lower income households, as
well as several other housing programs .
The HAP identifies the rental subsidy needs of lower income households
categorized into three major groups: elderly (including handicapped) ,
small family (four or fewer persons) , and large family as shown in
Table 5.
TABLE 5
CITY OF HUNTINGTON BEACH
RENTAL SUBSIDY NEEDS OF LOWER INCOME HOUSEHOLDS: 1989-1991
SMALL LARGE
INCOME LEVEL ELDERLY FAMILY FAMILY TOTAL
Very Low 919 3,548 416 4,883
Other Low 279 3,276 306 3,861
Expected to Reside 0 384 40 424
To Be Displaced 28 50 5 37
TOTAL 1 ,226 7,258 767 9,251
Source: City of Huntington Beach, Housing Assistance Plan,
1988-1991
A total of 9,251 lower income rental households are projected to need
rental assistance during the 1988-1991 time period. Small family
households are anticipated to comprise approximately 79 percent of those
in need, with elderly households comprising 13 percent and large family
households comprising 8 percent of the total household need.
Given this inventory of households in need, the HAP has set forth the
following rental assistance goals for the three year period:
TABLE 6
CITY OF HUNTINGTON BEACH
LOWER INCOME HOUSEHOLDS TO RECEIVE RENTAL SUBSIDIES: 1988-1991
SMALL LARGE
ELDERLY FAMILY FAMILY TOTAL
Households to
be Assisted 142 625 67 834
Percent 17% 75% 8% 100%
Source: City of Huntington Beach Housing Assistance Plan, 1988-1991
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The City has set as a goal the achievement of 9 percent of its rental_
assistance need for lower income households; HUD has identified 2-9
percent as a reasonable goal . Rental assistance will be provided to each
of the three needs groups in proportion to their identified needs.
In terms of the improvement or rehabilitation of the physical housing
stock, the HAP has identified the following goals:
TABLE 7
CITY OF HUNTINGTON BEACH
UNITS TO BE ASSISTED FOR LOWER INCOME HOUSEHOLDS: 1988-1991
Rehabilitation of New Home
Type of Occupancy Substandard Units Construction Improvements
Owner 112 0 0
Renter 196 250 10
Source: City of Huntington Beach Housing Assistance Plan, 1988-1991
The HAP identifies a series of federally-funded rental subsidy and
rehabilitation programs which will be implemented to meet the identified
housing assistance goals. These programs have been combined with other
non-Federally funded programs to form the overall program strategy for the
Housing Element, as presented in the program actions in .Section 3.2, and
further described in Section 3.6 - Description of Implementing Programs.
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3.4 Regional Housing Needs Assessment
State law requires jurisdictions to provide for their share of regional
housing needs. The Southern California Association of Governments (SCAG)
has determined the 1989-1994 needs for the City of Huntington Beach,
and has estimated the number of households which the City will be expected
to accommodate during this period. Future housing needs reflect the
number of new units needed in a jurisdiction based on households which are
expected to reside within the jurisdiction (future demand) , plus an
adequate supply of vacant housing to assure mobility and new units to
replace losses. These needs were forecast by the 1988 Regional Housing
Needs Assessment (RHNA) , which considered on a regional and local level :
market demand for housing, employment opportunities, availability of
suitable sites for public facilities, commuting patterns, type and tenure
of housing need, and housing needs of farm workers.
According to the model , . housing to accommodate 6,228 households would need
to be added to the City's June 30, 1989 total households by July 1994 to
fulfill the City's share of regional housing needs. Based on the
distribution of regional income, this total can be further divided among
HUD's four income groups to identify the types of households to be
provided for as follows:
TABLE 8
CITY OF HUNTINGTON BEACH
1989-1994 HOUSEHOLD NEEDS BY INCOME GROUP
Very Low (0-50% County median income 984 (15.8%)
Low (50-80% County median income) 1 ,264 (20.3%)
Moderate (80-120% County median income) 1 ,370 (22.0%)
Upper (over 120% County median income) 2,610 (41 .9%)
Total Households 6,228
Source: SCAG Regional Housing Needs Assessment, June 1988,
as revised.
The intent of the future needs allocations by income group is to relieve
lower income impaction - the undue concentration of very low and low
income households in a jurisdiction. Localities must fully address their
existing needs in order for impaction avoidance goals to be achieved in
the future period.
The Housing Element sets forth policies and programs to address the future
housing needs identified by the RHNA. The City's Land Use Plan provides
for a residential development capacity which is more than adequate to
fulfill the City's share of regional housing needs. In addition, the
Housing Element sets forth policies and programs to address the future
housing needs of those income groups not provided for in the market,
namely Very Low and Low, and to a lesser degree Moderate Income
households.
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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 .a.gency. The Agency's primary pur pose Iis to provide the
legal and financial ,mechanism necessary to address blighting conditions in
the community through the formation of a redevelopment project area(s) . Of
the various means permitted under State Law for financing redevelopment
implementation, the most useful of these provisions is tax increment
financing: This technique allows the assessed property valuation within
the redevelopment- project area to be frozen at its current assessed level
when 'the redevelopment plan is adopted. As the property in the project
area is improved or resold, the tax increment revenue generated from
valuation increases above the frozen value is redistributed to the
redevelopment agency to finance Redevelopment Project costs.
In many early redevelopment projects, a major focus was upon demolition of
blighted residential buildings and development of new non-residential uses
or upper income residential projects . While these type of projects worked
to eliminate. blighting- conditions, they did little or nothing to aid the
mostly low and moderate income residents of' the housing that was
demolished, in addition to having a negative impact on the community's
supply of affordable housing. To address the problems that arose with
regard to the effect- of redeveloment on low and moderate income housing,
the state legislature enacted a series of changes to. Community
Redevelopment Law which require redevelopment agencies to -undertake
activities which will assist in the production of low and moderate income
housing. The legislative requirements regarding low and moderate income
housing generally fall into three basic categories: 1) expenditure of
20% of the tax increment revenue to increase and improve the supply of low
and moderate income housing in a community; 2) requirements that
redevelopment agencies replace low and moderate income housing which is
destroyed as a result of a redevelopment project; and 3) requirements that
a portion of all housing constructed in a redevelopment project area be
affordable to low and moderate income persons and families. The
requirement for redevelopment agencies to set aside 20% of a project's tax
increment for low and moderate income housing can provide a significant
source of funding for implementation of a community's housing programs.
Huntington Beach
Seven years ago,, the Huntington Beach Redevelopment Agency began its
efforts to reverse the economic decline of several of the City's most
blighted neighborhoods. This campaign was first introduced in 1982 as the
"Community and Neighborhood Enhancement Program, " a concept which set in
motion activities and plans to upgrade housing, stimulate investment, and
improve circulation patterns in each of the four redevelopment project
areas established that year: Main-Pier, Oakview, Talbert' Beach, and
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Yorktown-Lake. The progress of these project areas spurred the
Redevelopment Agency .to include its primary commercial center, Huntington
Center, in its redevelopment plans in 1984. Through its redevelopment
efforts, the City Council/Agency is responsible for 344 new units of
affordable housing, including three senior housing projects.. Significant
housing rehabilitation improvements have also been achieved within the
Community and Neighborhood Enhancement target areas.
While the Redevelopment Agency has made significant progress in attaining
the goal of increasing the City's affordable housing stock, .none of the
20% set-aside fund has yet been expended, primarily due to its low
balance. However, with completion of a recent tax allocation bond sale,
nearly $3.7 million dollars is currently allocated to the 20% set-aside
fund. In 1988 AB 4566 mandated that redevelopment agencies with "excess
surplus"(a) monies in their housing set aside funds must either spend
these funds within five years or else transfer them .to another local
housing authority for expenditure. State law sets forth a variety of
options for localities to expend their housing funds, including the
following:
- Land Disposition and Write-Downs
- Site Improvements
- Loans
- Issuance of Bonds
- Land and Building Acquisition by Agencies
- Direct Housing Construction
- Housing Rehabilitation Programs
- Rent Subsidies
- Predevelopment Funds
- Administrative Costs for Non-Profit Housing
Corporations
A Housing Committee comprised of three City Council/Redevelopment Agency
members and four citizen representatives was formed to develop the fiscal
year 1989-90 20% Housing Set-Aside budget and implementation plan. The
Plan identifies expenditure of redevelopment set-aside funds on the
following programs:
1 . Rehabilitation projects benefiting low and moderate income
households where federal CDBG funds are found to be too restrictive.
2. Multi-Unit interest rate write-downs for existing federally assisted
(Section '236) housing projects with the potential for conversion to
market rate with expiration of the original loan. (The City also
intends to explore the feasibility of having non-profit sponsors take
over expiring projects with financing provided by tax-exempt
multi -family revenue bonds. )
(a) "Excess surplus" is defined as any unexpended and unencumbered balance
in an agency's Low and Moderate Income Housing Fund that exceeds the
greater of five hundred thousand dollars or the aggregate amount
deposited into the Fund pursuant to Community Redevelopment Law
(Health and Safety Code Sections 33334.2 and 33334.6) during the
agencies preceding five fiscal years.
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M
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.
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R '
3.6 Description of Implementing Programs
The Housing Element describes the housing needs of the City's current and
projected population, as well as the specific needs resulting from the
deterioration of older units, lack of affordable housing for lower income
groups, and special needs for certain segments of the City's population.
The goals and policies contained in the Housing Element address the. City's
identified housing needs. These goals and policies. are implemented
through a series of housing programs that are funded and administered
through a variety of local , regional , State and Federal agencies. Section
3.2 of the Housing Element sets forth the program actions the City intends
to implement over the five year period of the Element. The following
section provides a more detailed description of these programs and
references the program action(s) related to each housing program. In
addition, in order to further expand affordable housing opportunities in
Huntington Beach, several additional housing programs are described which
are under study but have not yet been committed to by the City.
3.6.1 Current Housing Programs and Recent Actions
The City takes an active role .in providing housing assistance through its
Housing and Community Development programs. In addition, the City has
taken a number of actions in the past to further the production of housing
and to improve the City's housing stock. The City's current housing
programs and recent actions related to housing are described in the
following section.
3.6.1.1 New Construction
Tax-Exempt Mortgage Program
The City maintains an on-going program to provide tax-exempt mortgage
financing for construction and mortgage loans as well as capital
improvements for multi-family housing. The City sells securities and
bonds to provide financing for multi -family projects. Purchasers of these
bonds receive an interest rate that is below the current mortgage market;
however, the income from the bond is tax-exempt which increases the
effective net yield to the bond holder.
Federal law requires that 20 percent of the total units in a bond-financed
project be reserved for lower income households. Recent State legislation
requires that one half of the reserved units be set aside for Very Low
Income households. (Program Action 2. 1, 2.9)
Density Bonus Incentives
Pursuant to State law, if a developer allocates at least 20 percent of the
units in a housing project to lower income households, 10 percent for very
low income households, or at least 50 percent for "qualifying residents"
(e.g. senior citizens) , the City must either a) grant a density bonus of
3-36
y
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.
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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.
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According to the Housing Authority, Huntington Beach has been one of the
more aggressive communities in the region in pursuing needed rental
subsidies. As of March 1, 1989, Huntington Beach had secured a total
allocation of 577 housing vouchers and certificates. Consistent with the
City's Housing Assistance Plan, the City's five year assistance goal is
for an additional 238 rent subsidies. However, it is impossible to know
how many additional housing vouchers the City will actually receive from
HUD. (Program Action 2.5)
Community and Neighborhood Enhancement
The Community and Neighborhood Enhancement Program is a comprehensive
program designed to promote and assist in the upgrading of declining
residential neighborhoods within the City. This program is designed to
meet individual needs, to be responsive to the social and economic
circumstance which exists within each neighborhood, to have strong
resident and property owner support, and to be limited to a few priority
areas so that the full benefit of a concentrated effort might be realized
by generating substantial physical and visual improvement within these
areas. The areas within the Neighborhood Enhancement Program include the
Oakview, Washington Street, Commodore Circle, South Shores, Liberty,
Oldtown and Townlot Neighborhoods. Rehabilitation loans are provided
through the City's Housing Rehabilitation Loan Program and Rental
Rehabilitation Program, described in the following sections. There is a
continuing effort to provide housing rehabilitation assistance, combined
with needed public improvements, to promote the renovation of existing
units within these neighborhoods with an estimated $650,000 to be budgeted
over the next fiscal year for this program. (Program Actions 4.2, 4.3,
4.4, 4.6)
Housing Rehabilitation Loan Program
This program utilizes CDBG funding to provide low interest loans to owners
of residential properties. Deferred Payment rehabilitation loans of up to
$10,000 are available to Very Low Income owner-occupied households. These
loans are due and payable with 6% one-time only interest fee at the time
of sale or transfer of ownership. The City also offers the following types
of below market interest rate loans for residential rehabilitation: a)3%
loans available to lower income households; b)6% loans available to median
income households within identified Community and Neighborhood Enhancement
target areas; and c)8% loans available to above-median income households
within identified Community and Neighborhood Enhancement target areas for
code compliance repairs only. The maximum loan amount for a below market
interest rate loan is $15,000.
The City of Huntington Beach has effectively marketed its Housing
Rehabilitation Loan Program, with approximately 50-65 loans processed each
year. This success is due in large part to the City's aggressive pursuit
of housing rehabilitation as part of the Community and Neighborhood
Enhancement Program. Rehabilitation loans are also offered to
income-qualified property owners as part of the City's code enforcement
activities. (Program Actions 4.2, 4.4, 4.6)
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Rental Rehabilitation Program
The Rental Rehab Program is a separately funded . Fede.ral 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
ti
debris, inoperable vehicles, illegal conversions, improper occupancy, and
other nuisance and zoning complaints. Upon inspection, if violations of
code exist,,. a viol,ation ,,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
thr.ee .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 Acti.ons 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 fo.r 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 b.e conserved and, if necessary, improved to meet
habitability standards. The City of Huntington Beach has several
federally as (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 :programi will offer a lump sum write-down of an existing
interest bearing note to reduce -debt service on existing multi =family
apartment complexes. In return:, the property owner will execute with the
City a recorded covenant requiring the continuance of affordable rental
rates to low and .moderate income households or_ a minimum of fifteen years.
(Program Action 5.2)
A second approach which may be pursued to conserve existing affordable
units would be for a non-profit sponsor to purchase Section 236 or other
subsidized projects, at the. current market value with financing provided by
tax-exempt multi -family revenue bonds issued by the City. The rating of
these tax-exempt securities could be enhanced by pledge of the
redevelopment housing set-aside funds, thus reducing the net interest cost
of the mortgage loan.
3-41
3.6. 1 .3 Housing Services
Home Sharing
Many seniors who would prefer to live independently resort to
institutionalized living arrangements because of security problems,
loneliness, or an inability to live entirely independently. A City-funded
shared housing program is currently offered at Roger's Senior Center in
Huntington Beach. Roommate matches are made between seniors based on
telephone requests. The Program's Administrator indicates requests for
home sharing are .sporadic--six to eight matches made for months in a row
followed by months without any requests. The program action for home
sharing indicates more active marketing should be undertaken to better
advertise the program's availability to seniors in the community. In
addition, the program action calls for investigating the development of a
pilot project to match residents of varying age categories which links in
with Project Self-Sufficiency. (Program Action 2. 12)
Project Self-Sufficiency
In attempts to curtail additional persons and families from becoming
homeless, the City's Economic Development Department runs "project
Self-Sufficiency" (PSS) . As its name suggests, the program aims to make
persons independent of government subsidies and become self-sufficient.
To meet this goal , PSS provides housing assistance in the form of Section
8 housing vouchers to low-income, single parents who are either currently
homeless or at risk of becoming homeless. The program also matches the
single parent with the appropriate agencies in the community to receive
needed assistance such as food, clothing, childcare and job training. In
order to qualify for the voucher program, persons must reside or work in
Huntington Beach or come from a homeless shelter sponsored by the
Huntington Beach Resource Board. When PSS is unable to provide services
to those in need, the program refers these persons to other social
services in the surrounding area. The program is currently funded
primarily through CDBG grants and private sector donations. (Program
Action 2. 10)
Other Homeless Services
The City of Huntington Beach provides funding ($43,000 in CDBG monies in
1988) to a variety of social service agencies which provide services to
the area's homeless population; 15 percent of the City's CDBG budget is
allocated towards social service providers. Services provided by these
organizations include lodging, food, clothing, bus coupons, housing
referrals and counseling. I'n addition, a new shelter targeted at
assisting the City's numerous adolescent homeless is set to open later
this year. The City has indicated it may provide supplementary
operational funds to this shelter, the Huntington Beach Youth Shelter. As
part of the current update to the City's Zoning Ordinance, appropriate
zones will be identified for the development or rehabilitation of
transitional housing and emergency shelters for the homeless. The City
will provide public notification in the newspaper, as well as directly
notify local service providers of the Zoning Ordinance update to solicit
community input. (Program Actions 2.11, 3.6)
3-42
3.6.1.4 Removal of Governmental Constraints
Senior Residential Suffix Zoning
The Senior Citizen Residential suffix was adopted to establish.- standards
for residential developments designed to house senior -citizens. By
adopting these standards, the City recognizes that housing needs- for- senior
citizens vary in some respects from the needs of non-seniors.. When the
suffix is applied to aproperty, certain development standards will .be
reduced; specifically, those related to floor area, site coverage,
building separation, building bulk, parking and open space. These reduced
standards will 'enable senior citizen projects to be built and. sold/rented
at a more affordable cost. (Program Action 1 .2)
Second Unit Ordinance
The City of Huntington Beach has amended its ordinance code by adding a
new subsection pertaining to second units in single-family residences. A
second unit may be added to an existing single family structure subject to
standards within the ordinance. This ordinance can provide a cost
effective means of serving additional development through the use of
existing infrastructure 'and should provide relatively affordable housing
for low' and moderate income small households within existing under-
utilized structures. (2.0 Policies)
Mobilehome' Overlay Zone and Conversion Ordinance
The Mobilehome Overlay Zone and Conversion Ordinance contains requirements
for applying the mobilehome park overlay zone and provides minimum,.,
standards for an acceptable mobilehome relocation assistance plan if a
mobilehome park is converted to other uses. Many senior citizens and low
income households presently reside in the City's mobilehome parks. The
goal of- the mobilehome relocation assistance plan is to provide
alternative housing opportunities for mobilehome residents who may be
displaced as a result of the conversion of mobilehome parks to_ other land
uses. Any displacement of mobilehome units (or any low or moderate income
housing) resulting from City-sponsored redevelopment activities will be
replaced in equal number within -four years and will be available at
affordable rates. (2.O Policies)
Fast Track Processing
The City is considering developing an expedited processing .procedure for
projects with an affordable component which require approval by the
City's Planning Commission or Council . This program would be helpful in
reducing holding costs while processing the approvals necessary for zone
changes, density bonuses, plan check and building permit procedures,
thereby resulting in lower construction costs and more affordable housing.
The specific procedures for fast-track processing of affordable housing
projects could be developed as part of the update to Division 9 of the
City Municipal Code. (Program Action 2.8)
3-43
3.6.1.5 Fair Housing
Orange County Fair Housing Council
Huntington Beach is a member of the Orange County Fair Housing Council and
will contribute $32,000 in Community Development Block Grant funds for its
support during fiscal year 1989-90. The primary programs of the Fair
Housing Council include: 1) housing discrimination response; 2) landlord-
tenant counseling; 3) low income housing advocacy; 4) publication of the
semi -annual Forum newsletter; and 5) community awareness and education.
(Program Action 1 . 1)
3.6.2 Housing Programs Under Study
In order to increase affordable housing opportunities in Huntington Beach,
the following additional programs are currently under study by the City.
Reverse Mortgage Program
The most substantial asset of most elderly homeowners is their home, which
in Huntington Beach has increased significantly in value with inflation.
And while owning a home may provide a rich asset base, with the onslaught
of retirement and a fixed income, many elderly homeowners quickly become
income poor. Home maintenance repairs multiply as the home ages, and with
the rising costs in home utilities, insurance, and taxes, maintenance
often gets deferred altogether, creating an unsafe and often depressing
living environment for the senior.
An alternative option for the elderly homeowner is to draw needed income
from the accumulated equity in their homes through a reverse mortgage. A
reverse mortgage is a deferred payment loan or a series of such loans for
which a home is pledged as security. Qualification for the loan is based
primarily on property value rather than on income, allowing the elderly
homeowner on a fixed income to receive a loan for which he or she would
otherwise not qualify. Most reverse mortgage programs permit homeowners
to borrow up to 80 percent of the assessed value of their property, to
receive needed principal of up to 25 percent of the loan, and then to
receive monthly annuity payments for the life of the loan.
The San Francisco Development Fund offers free training to communities
interested in organizing a reverse mortgage program for seniors. Rather
than making the loans themselves, the City's role could be to facilitate
the initiation of reverse mortgage loans through the following steps.
First, the City would need to provide educational and counseling services
to seniors interested in pursuing a reverse mortgage. Secondly, the City
would need to work with local lending institutions which currently
provide these loans to gain a thorough understanding of the application
process. The City could then work with the seniors to complete the loan
applications and assist in providing any other necessary information to the
bank. Local contacts .which may be helpful to the City in setting up a
reverse mortgage program include the City of Orange, which has been
operating their mortgage program for over a year, and Security Pacific
National Bank in Downey, which has begun offering reverse mortgage loans.
3-44
Non-Profit Construction
A non-profit housing corporation works to develop, conserve and promote
affordable housing, either owner or renter-occupied. Often the non-profit
is involved with what is called "assisted housing" where some type of
government assistance (such as Section 8) is provided to the indivi.dual
household to keep rents affordable. Housing corporations can work with
assisted housing in several ways:
1 . The non-profit may assemble a development package and sell it to a
profit-motivated developer. The package usually consists of a site,
project design, the necessary permits, and, in some cases, preliminary
financing commitments . The advantage of this method is that the
non-profit can get low- and moderate-income housing built while ending
its involvement early in the process and going on to other projects .
The disadvantage is that the non-profit may lose control over the
development at the time of sale. However, the non-profit could
negotiate to retain some control over the project in the recorded
contractual agreement between it and the developer.
2. The non-profit may participate in a joint venture with a
profit-motivated developer. Though it usually performs . the same
functions as in the first method, the non-profit can retain more
control over the development and gain. hands-on development experience
while benefitting from the financial resources of the for-profit
developer. In this' option, however, the non-profit has a longer
involvement and will have to negotiate the rights and responsibilities
of the two partners.
3 . In the third approach, the non-profit is the developer. In this case,
the group must employ staff with necessary expertise or rely heavily
on consultants . In return, the group has total control over the .
development. This option requires more risk, money, time, effort, and
capability, on the part of the non-profit.
A non-profit housing corporation can help meet the goals for additional
housing by implementing or assisting with the implementation of programs
described in the Housing Element. The City should coordinate with local
non-profit groups or encourage the formation of a housing development
corporation by interested parties in the community to facilitate the
development and improvement of low cost housing in Huntington Beach.
3-45
'Neighborhood Housing Services
The Neighborhood Housing Services (NHS) program operates as a private
non-profit group run by local residents, business leaders, and local
government. The purpose of the NHS is to assist in rehabilitation and
preservation of housing units in neighborhoods where the housing stock is
deteriorating. Services provided by the NHS can include rehabilitation
counseling, assisting homeowners in working with contractors, advise about .
financing, revolving loans for rehabilitation, and involving the
neighborhood in the community.
Limited funding for the NHS revolving loan fund is available through the
Neighborhood Reinvestment Corporation (NRC) , a non-profit public
corporation authorized by Congress to encourage revitalization of
residential neighborhoods. NRC provides $50,000 grants for the revolving
loan fund and makes available technical assistance to develop and maintain
the NHS.
Limited Equity Cooperatives
Limited equity cooperatives provide a means of homeownership to people who
could not otherwise afford to buy housing. A housing cooperative is owned
by a corporation made up of the cooperative's residents. Members do not
own the individual units in which they live, but rather they own a share
in the corporation and thereby have the exclusive right to occupy a
specific unit. In a limited equity cooperative, the amount for which a
share may be sold is limited to ensure the long term affordability of the
unit. Affordability is protected because the corporate entity holds a
blanket mortgage where vacated units are not refinanced and resold,
thereby protecting them from price inflation. The City can maintain
information and limited equity cooperatives as reference for groups trying
to organize a co-op.
Mobile Home Park Assistance Program
This program, offered. by the State Department of Housing and Community
Development, provides financial and technical assistance to mobilehome
park residents who wish to purchase their mobilehome parks and convert the
parks to resident ownership. Loans are made to low-income mobilehome park
residents or to organizations formed by park residents to own and/or
operate their mobilehome parks, thereby allowing residents to control
their housing costs. Loans are limited to 50 percent of the purchase
price plus the conversion costs of the mobilehome park, and are awarded by
the State on a competitive basis. Applications must be made by mobilehome
park residents who must form a resident organization, and a local public
entity as co-applicants . The City could help to facilitate the use of
this program by advertising its availability to mobilehome park residents,
and by serving as co-applicant for resident organizations applying to the
State for funding.
3-46
APPENDIX A
STATE HOUSING ELEMENT REQUIREMENTS
STATE HOUSING ELEMENT REQUIREMENTS
REQUIRED HOUSING ELEMENT COMPONENT REFERENCE
A. Housing Needs Assessment
1 . Analysis of population trends in Huntington Data Report,
Beach in relation to regional trends Section 2. 1
2. Analysis of employment trends in Huntington Data Report
Beach in relation to regional trends Chapter 5.0
3. Projection and quantification of Huntington Housing Element
Beach's existing and projected Section 3.4
housing needs for all income groups
4. Analysis and documentation of Huntington
Beach's housing characteristics including the
following:
a. level of housing cost compared to Data Report,
ability to pay; Section 3.5
b. overcrowding; Data Report,
Section 3.3
c. housing stock condition. Data Report,
Section 4.3
5. An inventory of land suitable Housing Element
for residential development including Section 2.3
vacant sites and sites having
redevelopment potential and an
analysis of the relationship of
zoning, public facilities and
services to these sites
6. Analysis of existing and potential Housing Element
governmental constraints upon the Section 2.2
maintenance, improvement, or develop-
ment of housing for all income levels
7. Analysis of existing and potential Housing Element
nongovernmental and market Section 2.2
constraints upon maintenance, improve-
ment, or development of housing for
all income levels
A-1
+ s
STATE HOUSING ELEMENT REQUIREMENTS (continued)
REQUIRED HOUSING ELEMENT COMPONENT REFERENCE
8. Analysis of special housing needs: Housing Element
handicapped, elderly, large families, Section 2. 1
and female-headed households
9. Analysis concerning the needs of Housing Element
homeless individuals and families in Section 2. 1
Huntington Beach
10. Analysis of opportunities for energy Data Report,
conservation with respect to Section 7.2
residential development
B. Goals and Policies
1 . Identification of Huntington Beach's Housing Element
community goals relative to maintenance, Section 3.2
improvement, and development of housing
2. Quantified objectives and policies relative Housing Element
to the maintenance, improvement, and Section 3.2
development of housing in Huntington Beach
C. Implementation Program
An implementation program should do the
following:
1 . Identify adequate sites which will be Housing Element
made available through appropriate action Section 3.2
with required public services and facilities
for a variety of housing types for all
income levels
2. Program to assist in the development of Housing Element
adequate housing to meet the needs of Section 3.2
low- and moderate-income households
3. Identify and, when appropriate and Housing Element
possible, remove governmental constraints Section 3.2
to the maintenance, improvement, and
development of housing in Huntington Beach
4. Conserve and improve the condition of Housing Element
the existing affordable housing stock Section 3.2
in Huntington Beach
5. Promote housing opportunities for all Housing Element
persons regardless of race, religion, sex, Section 3.2
marital status, ancestry, national origin
or color
A-2
APPENDIX B
City of Huntington Beach
1989 Housing Element Update
Technical Data Report
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HUNTINGTON BEACH HOUSING ELEMENT TECHNICAL DATA REPORT
Revised May 1990
Prepared by:
Cotton/Beland/Associates, Inc.
1028 North Lake Avenue
Suite 107
Pasadena, California 91104
#555
Y
CITY OF HUNTINGTON BEACH
HOUSING ELEMENT TECHNICAL REPORT
TABLE OF CONTENTS
Paqe
1 .0 INTRODUCTION
-- 1 .1 Purpose of Report 1-1
1 .2 Sources of Information 1-1
1.3 Huntington Beach Setting 1-2
2.0 POPULATION CHARACTERISTICS AND TRENDS
2. 1 Population Growth 2-1
2.2 Age Composition 2-3
2.3 Race and Ethnicity 2-6
3.0 HOUSEHOLD CHARACTERISTICS
3. 1 Household Composition 3-1
_ 3.2 Household Size 3-2
3.3 Overcrowding 3-2
3.4 Household Income 3-3
3.5 Housing Affordability 3-7
3.6 Special Needs Groups 3-9
4.0 HOUSING UNIT CHARACTERISTICS
4. 1 Housing Growth 4-1
4.2 Housing Type and Tenure 4-2
4.3 Age/Condition of Housing Stock 4-3
—' 4.4 Housing Costs 4-13
4.5 Share of Region's Housing Needs 4-26
4.6 Housing in the Coastal Zone 4-27
5.0 EMPLOYMENT CHARACTERISTICS 5-1
6.0 HOUSING CONSTRAINTS
6. 1 Market Constraints 6-1
6.2 Governmental Constraints 6-2
6.3 Environmental and Infrastructure Constraints 6-8
7.0 HOUSING OPPORTUNITIES
7. 1 Availability of Sites for Housing 7-1
7.2 Energy Conservation 7-12
r
LIST OF TABLES
Table Page
1 Regional Population Growth: 1970-1988 2-1
2 Population Trends: Huntington Beach and 2-2
Surrounding Areas, 1980-1988
3 Projected Population Growth: 1988-2010 2-3
4 Age Characteristics of Population: 1980 & 1988 2-5
5 Ethnic Composition: 1980 & 1988 2-6
6 Household Type: 1980 & 1988 3-1
7 Household Size: 1980-1993 3-2
8 Median Household and Family Income: Huntington 3-3
Beach and Surrounding Areas, 1979
9 Income Groups: 1979 & 1988 3-5 '
_ 10 1988 Income Distribution by Subarea 3-8
11 Lower Income Households Paying Greater Than 30% 3-9
of Income for Shelter
12 Summary of Special Needs Groups: 1988 3-9
_ 13 Social Service Agencies Which Provide Services 3-14
to the Homeless in the Huntington Beach Area
14 Housing Trends: Huntington Beach and Surrounding 4-1
Area, 1980-1988
15 Housing Trends: 1980-1988 4-2
16 Age of Housing Stock: 1988 4-5
17 Housing Stock Conditions: 1988-1991 4-6
18 Housing Values: Huntington Beach and Surrounding 4-13
Areas, 1980
19 Single-Family Residential Sales: 1988 4-14
_ 20 Single-Family Residential Sales: Downtown/Old Town 4-15
LIST OF TABLES
(Continued)
Table Page
21 Single-Family Residential Sales: Harbor/Bolsa Chica 4-16
22 Single-Family Residential Sales: North Central 4-17
23 Single-Family Residential Sales: Southeast 4-18
24 Condominium Sales Activity: 1988 4-19
_ 25 Condominium Sales: Downtown/Old Town 4-20
26 Condominium Sales: Harbor/Bolsa Chica 4-21
27 Condominium Sales: North Central 4-22
28 Condominium Sales: Southeast 4-23
29 Monthly Rents: Huntington Beach and Surrounding 4-24
Areas, 1980
30 Monthly Rental Rates: 1988 4-25
31 Monthly Rental Rates by Subarea: 1988 4-26
31A 1989-1994 Household Needs by Income Group 4-26
_. 32 Affordable Housing Projects within Three Miles of 4-28
Coastal Zone
33 Employment Trends: 1980 & 1984 5-2
34 Residential Development Capacity of Land Use Plan 6-4
35 Summary of Development Fees for Typical Low Density 6-6
Residential Project
_ 36 Summary of Development Fees for Typical High Density 6-7
Residential Project
37 Development Processing Time in Huntington Beach and 6-8
Surrounding Communities -
38 Vacant Lands Suitable for Residential Development: 7-4
1988
39 Residential Recycling Activity 7-5
40. Potential Residential Development Summary 7-11
LIST OF FIGURES
Figure Page
1 Regional Location Map 1-3
2 Population Growth: 1980 - 1988 2-4
3 Race and Ethnicity: 1988 2-8
4 Median Household Income: 1988 3-6
5 Housing Tenure: 1988 4-4
6 Community and Neighborhood Enhancement Areas 4-7
7 Median Single-Family Residential Sales Prices: 1988 4-15. 1
8 Median Condominium Sales Prices: 1988 4-20. 1
9 Median Rental Rates: 1988 4-25. 1
10 Previously Constrained Lands Suitable for
Residential Development 7-2
11 Bolsa Chica Residential Development Plan 7-9
1.0 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.
1-1
1.3 Huntington Beach Setting
The City of Huntington Beach is an older suburban community situated in
the northern coastal section of Orange County. The City is bordered by the
unincorporated territory of Seal Beach to the northwest, the cities of
Westminister and Fountain Valley to the north, the City of Costa Mesa to
the east, and the Pacific Ocean to the south. The City's regional
location is depicted in Figure 1 .
The dominant physical characteristic of the City are its miles of
coastline, including the Bolsa! Chica and Huntington Beach State Parks.
Other points of interest include Bolsa Chica Ecological Reserve,
Huntington Harbor, and the natural waterways of Anaheim Bay Landing.
Existing develoment pressures in Huntington Beach can be attributed to its
coastal locale and its central location within the Los Angeles - San Diego
urbanizing corridor.
1-2
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FIGURE 1
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 1-1788.
2-1
The 1988 population of Huntington Beach is estimated by the California
Department of Finance to be 187,740 persons, making Huntington Beach the
third largest city in Orange County behind only Anaheim and Santa Ana. As
illustrated in Table 2, Huntington Beach's population grew by
approximately 10% between 1980 and 1988, representing an average annual
growth rate of 1 .25%. This population growth rate is comparable with most
jurisdictions surrounding Huntington Beach . The population growth rate in
Orange County was somewhat higher than in Huntington Beach, reflecting the
fact that the City is more built out than many areas of the County.
TABLE 2
POPULATION TRENDS: HUNTINGTON BEACH AND SURROUNDING AREAS
1980-1988
Jurisdiction 1980(a) 1988 b % Increase
Anaheim 219,311 243,021 10.8
Costa Mesa 82,562 91 ,891 11 .3
Fountain Valley 55,080 55,702 1. 1
Huntington Beach 170,505 187,740 10.1
Newport Beach 62,556 69,597 11 .3
Santa Ana 203,713 231,460 13.6
Westminster 71 , 133 73,763 3.7
Orange County SMSA 1,932,709 2,238,721 15.8
Source: (a) U.S. Department of Commerce, Bureau of the Census, 1980
Census Report.
(b) California Department of Finance, Controlled Population
Estimates for 1-1-88.
POPULATION TRENDS: HUNTINGTON BEACH
AND SURROUNDING AREAS 1980-1988
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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
2-3
a r'•� 1980: 59,151
•
1988: 61,027 °°i%
% INCREASE: 3.1% aoLF °\�. / '•�
NORTH / '•`
♦\ CENTRAL / •'�%
t \ •
\ �P��� ♦\♦\ %DOWN-
TOWN/ ♦\ ♦♦�
J« Meadowlark '\ ♦\ OLD- SOUTHEAST
/��.• \ Airport / \ ♦� TOWN \• 5 ��° �.
\ / ♦\ \
�° 1980: 58,568
/�•/• HARBOR/\ / ♦\♦ �i'Pi•\ 1980: 29,312 ♦\. 0 °�\
,. . \ 1988: 63,418'
BOLSA CHICA a °�I 1988: 36,073,
O
■ .�� \ % INCREASE: 8.3% :♦♦
� P mmmmi, ♦♦ ♦
° .� % INCREASE: 23%. \ °
/♦ Py♦ •rmumuammmmmmmmam a•� C �4
_ Huntington �.
1980: 23,474 "arbour °° •. \ •
� �� - ♦ Edison Company ♦
B o l s a �:.G h i c a � ♦\ Generating� \♦
f 1988: 27,222 .• i Sea crrr \ vlanct� PAC'%F •
a . Country Club •
J. J Preserve
■ % INCREASE: 16% ,• ,•�. st,a �-
P'sC¢k,r:mr,■u ■aa as .■■. ♦• - ,. <5G1♦ ♦\♦ �-
■■rammm "..a
au a ■aaomau Vaa p■ ♦• MGHv'�AV _ ��•������
. __� ■mmaaaaa=aoaa=aam=aa�♦- COAST
F P A C F 1 C O C E A N
0 3636
(d% North scalescaleh�
FIGURE 2
POPULATION GROWTH:1980-1988
TABLE 4
CITY OF HUNTINGTON BEACH
AGE CHARACTERISTICS OF POPULATION: 1980 & 1988
1980(a) 1988 b
_ # of % of # of % of
Age Range Persons Po ulation Persons Population
0-5 13,024 7.6 13,517 7 .2
6-13 21 ,341 12.5 19,337 10.3
14-17 13,074 7.7 11,828 6.3
18-20 10,237 6.0 9,387 5.0
21-24 14,550 8.5 14,456 7.7
25-34 32,910 19.3 36,603 19.5
35-44 24,724 14.5 34,356 18.3
45-54 17,808 10.4 20,276 10.8
55-64 12,717 7.5 13,705 7.3
65+ 10,120 5.9 14,268 7.6
TOTAL 170,505 100.0 187.740 100.0
MALE 84,634 49.6 92,369 49.2
FEMALE 85,871 50.4 95,371 50.8
Median Age 28.9 31 .9
Source: (a) U.S. Department of Commerce, Bureau of Census, 1980 Census
Report.
(b) Urban Decision Systems, Demographic Trends; 1980-88-93 .
CITY OF HUNTINGTON BEACH:
AGE CHARACTERISTICS OF POPULATION
20%
1980 s
� 1988
_ 4
o�
.. 10% s
ca
d
a
0%
_ 0-5 6-13 14-17 18-2 0 21-24 2 5-34 3 5-44 4 5-54 5 5-64 6 5+
Age Groupings
2-5
City's young adult population (age 25-34) , these factors support the
finding that the City's housing stock is inaccessible to many first-time
homebuyers. The mid-adult age cohort (age 35-44) experienced the greatest
increase in population over the 1980-88 period, the higher income of this
group more able to afford the City's costly housing market. The City's
elderly population (those 65 and over) increased from 5.9 percent of the
population in 1980 to 7.6 in 1988, representing an increase of over 4,000
persons. Nonetheless, this is still below both the County's (8.3%) and
State's (9.0%) proportion of elderly in 1980. The proportion of elderly
persons in Huntington Beach can be expected to continue to increase as
those persons between the age of 35 and 64 (over .one-third of the
population) grow older, consistent with nationwide trends of a large
aging population.
2.3 Race and Ethnicity
Table 5 presents the race and ethnic make-up of Huntington Beach in 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 Po ulation 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.
2-6
- The four geographic subareas in the City evidence some differences in
racial composition as illustrated in Figure 3. The Harbor/Bolsa Chica and
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.
2-7
sAp fs� � °°:r• d •�, °°
•
G \
�'ry It °♦ r �
i� WHITES: 52,279 (85.6%) eOG ♦\� / °:°
r; BLACKS: 920 (1.5%) '�f� �f'� ♦♦� °�
■
AMER. INDIAN: 859 (1.4%) f o % +1 / *%
ASIAN: 6,050 (9.9%) NORTH
, � ♦•♦� � °�
OTHER: 919 (1.5%)\
% CENTRAL ^ �� •\✓ ;\
�\f SPANISH/HISPANIC: 6,103 (10%)�P�?`� ��� %OWN
TOWN/
�., Meadowlark OLD- SOUTHEAST
;• ` Airport TOWN WHITES: 56,252 11
``\\ \` BLACKS: 634 (1.0%)
:•/ HARBOR/� "j�� A \`� AMER. INDIAN: 571 (.9%)
WHITES: 24,772 (91%) ' '♦`
:• BOLSA CHICA, ; •J WHITES: 33,028 (91.6%) ASIAN: 5,073 (8.0%) n
BLACKS: 191 (.7%) ' ••<
• _ ..�..::�,.♦♦. E� � BLACKS: 428 (1.2%) `` OTHER: 888 (1.4%) °
.•% Huntington ♦♦wr AMER. INDIAN: 163 (.6%) '" �,� c,°° AMER. INDIAN: 390 11 `� SPANISH/HISPANIC: 4,186 11
/♦ Harbour ♦• �; Edison Company :
♦♦♦ ASIAN: 1,851 (6.8%) ; INIAN:AS 1,473 (4.1%) `\ Generating ® �\
O OTHER: 245 (.9%.' ♦ sea cru \! Plant PACE
t■ ♦• I. • Country Club OTHER: 754 (2.1%)
•.• SPAN ISH/HISPANIC: 1,5423 (5.6%)j ; SPANISH/HISPANIC: 3,210 (8.9%0 '` ■" -�" ■
^C¢�' .■■�•u�s�■■■.... .....IN u■ ■.uu■u.. .. ,.... ♦�• HIGHWAY
� -� -_�-`- ■■■O■■pp■� COAST
P A C F I C O C E A N
0 3636
��hCl R North scale In feet
FIGURE 3
RACE AND ETHNICITY:1988
r
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.
— 3-1
n y
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.
3-2
a
r 6
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 w $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.
3-3
a y
_ The Department of Housing and Urban Development and the State Department
of Housing and Community Development have developed the following income
categories and their definitions:
° Very Low Income - less than 50 percent of the regional (County) median.
Low Income - between 51 and 80 percent of the County median.
Moderate Income - between 81 and 120 percent of the County median.
° Upper Income - greater than 120 percent of the County median.
The City's 1979 income distribution can be divided into these four income
categories through interpolation, as presented in Table 9. In addition,
estimates of 1988 household income in Huntington Beach have been
obtained from Urban Decision Systems, and have been grouped into the four
income categories based on a 1988 median household income of $44,400 for
Orange County. Comparing the City's income distributions in these two
—' years provides insight into the changing income characteristics of the
City's population.
— Huntington Beach has experienced both a proportional and a numeric
increase in households classified as Very Low, Low and Moderate Income
during the 1979-1988 period. Very Low Income households have experienced
_ the greatest increase of any of income group, with 24.5 percent of the
City's 1988 households earning less than half the county median income, as
compared with 18 percent in 1979. Low Income households have experienced
a more modest increase from 16.2 to 18.7 percent of total households, as
have Moderate Income households which increased from 22.7 to 23.3 percent
of total households. Finally, the City has experienced a significant
decrease in Upper Income households from 42.1 to 33 .5 percent of total
households, and an actual numeric reduction of 3,373 households.
Explaining these significant changes in the City's income distribution is
the fact that Orange County median household income increased 97 percent
during the 1979-1988 period from $22,557 to $44,400. Household incomes in
— Huntington Beach experienced a somewhat lesser increase from $24,015 to
$40,375, or 68 percent, during the same time period.
Household Income by Geographic Subarea
Figure 4 presents estimated 1988 household income for each of the four
geographic subareas evaluated. Downtown/Old Town exhibited the lowest
incomes in the City, with a median household income of $31,024,
substantially below the City-wide median of $40,375. Incomes in North
Central Huntington Beach ($40,222 median) were comparable to those
City-wide. Harbor/Bolsa Chica and Southeast Huntington Beach evidenced
the highest incomes in the City, with 1988 median household incomes of
$44,569 and $45,900 respectively.
3-4
pt R
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
50%
Ej 1979
40% 0 t988
d
3 036
y
c
c
20%
a
10%-
4
S
p� R
0%
Very Low Low Moderate Upper
Income Group
3-5
CO( .w BF7C,y w• ab
° +\•' •' -=- MEDIAN HOUSEHOLD INCOME
c°'��,/'•�✓•� '\ •�'• .,C/ CITY-WIDE: $40,375
$40,222 ••'�.� P'� '•�
NORTH / ••� •'.`
CENTRAL �\ •\:\ '�,
P
�\ �P�2� \•\ %DOWN- ��,� S�� tiGF •'.
�\ •\ TOWN/ •\ .:
j.� Meadowlark \ OLD- SOUTHEAST
/•�.• \\ Airport / I ,\ TOWN \ �° •��
/:•% HARBOR/\ / \, ,�_�;•\ $31,024 \ $451900 m �•�
/;.• BOLSA CHICA $44/569 •�� ° `\\ •��
•
P •.•.
:• Huntington •• C+ 1�
Harbour •1 - t� �\ P .�,
(�_ .• �` , Edison I Company ;
O B o Is a C h i c a \ Generating \,■ .•• Sea Cliff Plant PACK
r■ • • CountryClub \
• Preserv.e is
o=_�O •-..r �' ■u.-1..u.u=,`.`e.....=emu.=-.-=■ .•• COAST
P A C F I C O C E A N
0 3636
r K North scale In feet
FIGURE 4
MEDIAN HOUSEHOLD INCOME:1988
a s
Table 10 presents a breakdown of incomes into the four income groups for
each of the geographic subareas. This data indicates that Downtown/Old
Town contains the highest proportion of Very Low Income households, an
estimated 35 percent of the total households in this area classified as
Very Low Income. Nearly one-quarter of the households in North Central
Huntington Beach are Very Low Income, with Southeast Huntington Beach and
Harbor/Bolsa Chica each containing approximately 20 percent Very Low
Income households. Consistent with its high concentration of Very Low
Income households, Downtown/Old Town contains the highest proportion (22%)
of Low Income households in the City. North Central , Harbor/Bolsa Chica,
and Southeast Huntington Beach contain 19, 18, and 16 percent Low Income
households respectively. This income data indicates that, while
concentrations of lower income households are located in Downtown/Old
Town and to a lesser degree in North Central Huntington Beach, lower
income households are located throughout the City.
3.5 Housing Affordability
State and Federal standards for housing overpayment are based on an
income-to-housing cost ratio of 30 percent and above. Households
paying greater than this amount have less income left over for other
necessities such as food, clothing, utilities and health care. It is
recognized, however, that Upper Income households are generally capable of
_ paying a larger proportion of their income for housing, and therefore
estimates of housing overpayment generally focus on lower income groups.
The Regional Housing Needs Assessment (RHNA) prepared by SC�5)identifies
— housing overpayment for the City's lower income households based on
data from the 1980 census. According to the RHNA, an estimated 10,565 (or
45 percent) of Huntington Beach's lower income households were paying more
than 30 percent of their income on rent or mortgage payments as of January
1, 1988. Of these overpayers, 5,961 are classified as Very Low Income and
4,604 are Low Income.
Housing Overpayment by Tenure
The distinction between renter and owner housing overpayment is important
because, while homeowners may over-extend themselves financially to afford
the option of home purchase, the owner always maintains the option of
selling the home. Renters, on the other hand, are limited to the rental
market, and are generally required to pay the rent established in that
market. The Regional Housing Needs Assessment has broken down housing
overpayment by housing tenure, as presented in Table 11. Of the total
10,565 lower income households identified as overpayers, 8,638 were renter
households and only 1,927 were owner households. This discrepancy is
largely reflective of the tendency of renter households to have lower
incomes than owner households.
(a) Lower income households are defined as households whose total gross
income is less than 80 percent of the County median. "Lower Income"
encompasses both Very Low and Low Income groups.
3-7
9 +1
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
100x
0
d ® VERY LOW
® LOW
_ ® MODERATE
0
® UPPER
0% Do,*ntown1 Southea3t Harbor! North Central
Oldtown BolsaChica
Subarea
3-8
a v
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.
3-9
9 A
- Elderl : 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
3-10
# 4
Assistance Plan identifies 767 lower income large families in need of
rental assistance, representing eight percent of total households needing
rental subsidy. The housing needs of large households can be addressed
through the provision of affordably priced larger housing units.
Female-Headed Households: Female-headed households tend to have low
incomes, thus limiting housing availability for this group. In 1984, 9
percent of Huntington Beach's households were headed by a woman, as
reported in the City's Housing Element. Applying this percentage to the
City's 1988 housing stock translates to an estimated 6,316 female-headed
households. The City's Housing Assistance Plan estimates that 4,268
female-headed households (67%) in Huntington Beach have dependent children
under 18 years of age. Thus, providing housing opportunities for this
group relates both to affordability and services related to the care of
children.
Farmworkers: The special housing needs of many farmworkers stem from
their low wages and the insecure nature of their employment. Those
persons working in the farming industry have been counted by the 1980 U.S.
Census and are also included in the City's 1984 Housing Element.
According to the Census, approximately one percent of the total labor
force in Huntington Beach was employed in farming, forestry, or fishing.
According to the City's Housing Element, there were 878 persons employed
as farmers residing in the City in 1984, or .6 percent of those persons
aged 18 and over.
Homeless: Throughout the country, homelessness has become an increasing
_ problem. Factors contributing to the rise in homeless include the general
lack of housing affordable to low and. moderate income persons, increases
in the number of persons whose incomes fall below the poverty level ,
reductions in public subsidy to the poor, and the de-institutionalization
of the mentally ill . Based on estimates by the Orange County Homeless
Issues Task Force, the County's homeless population consists of
approximately 8,000 to 10,000 individuals, some of whom are located in
Huntington Beach. As a beach community, the City attracts numerous
individuals who congregate along the beach, under the pier, by the Santa
Ana River bed, and in Central Park. The Episcopal Service Alliance (ESA) ,
an ecumenical organization in Huntington Beach which provides social
services for homeless, reported for February 1989 the number and types of
homeless which sought their assistance. As the figures below reveal , the
majority of homeless seeking assistance are couples with children (195)
and lone females with children (152) . These totals, however, represent
only a portion of the actual number of homeless in the City. ESA
indicates that as referrals of the service continue to spread, the total
number of homeless reported continues to increase every month.
3-11
City of Huntington Beach
Homeless Seeking Assistance
Total
Type Individuals
Homeless with no shelter 17
Homeless in Motels 21
Homeless and Mentally Ill 3
Homeless Families 24
Couples 12
Couples with children 195
Lone Females 16
Lone Females with children 152
Lone Males 37
Lone Males with children 4
Total 481
Source: Episcopal Service Alliance,
February 1989
Project Self-Sufficiency
-- In attempts to curtail additional persons and families from becoming
homeless, the City's Economic Development Department runs "Project
Self-Sufficiency" (PSS) . The program, which first began in 1984 as a
nationwide HUD demonstration project, is funded primarily through CDBG
Grants and private sector donations. As its name suggests, the program
aims to make persons independent of government subsidies and become
self-sufficient. To meet this goal , PSS provides housing assistance in
the form of Section 8 housing vouchers to low-income, single parents who
are either currently homeless or at risk of becoming homeless. The
program also matches the single parent with the appropriate agencies in
the community to receive needed assistance such as food, clothing,
childcare and job training. In order to qualify for the voucher program,
persons must reside or work in Huntington Beach or come from a homeless
shelter. Seventy percent of all persons who have participated in the
program have been Huntington Beach residents, with the remaining 30
percent referred from sponsored shelters. When PSS is unable to provide
services to those in need, the program refers these persons to other
social services in the surrounding area.
3-12
i 8
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.
3-13
Q• y
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.
3-14
4.0 HOUSING UNIT CHARACTERISTICS
4.1 Housing Growth
While residential development in many urbanized areas is beginning to slow
due to the diminshing supply of available land, Huntington Beach' s housing
stock has continued to experience substantial growth 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%
's1536 s
t o%
8%
u
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is
2
Anaheim Costa FountainHntngtnNewport Santa Wstmstr. Orange Co.
Mesa Valley Beach Beach Ana
4-1
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— 4.2 Housing Type and Tenure
During the sixties, vacant land was plentiful in Huntington Beach, and
— housing construction was characterized almost exclusively by large tracts
of single family homes. During the early seventies, planned condominium
developments and small multi -family rental units became popular in
_ response to changing housing demands, land constraints, and market
conditions. Housing growth in the eighties is characterized by
multi-family apartments and condominiums, lower density duplex and triplex
units, and some single family dwellings.
While Huntington Beach has experienced significant growth in its housing
stock during the 1980s, the composition of the housing stock (single
versus multi-family) has undergone little change. Single-family dwelling
units continue to comprise the predominant housing type in the City,
constituting three-fifths of all housing (refer to Table 15) . Multi -
family units, however, exhibited a greater rate of growth during the
1980-1988 period, increasing by 13 percent, as compared with 9 percent for
single-family units. After tapering off in the mid-eighties, condominium
activity has begun to increase again in Huntington Beach. Condominium
— units comprise over half of the City's multi-family housing stock, with
two-thirds of these units located in the Southeast and Downtown/Old Town
neighborhoods. Due to the limited amount of available land in the City
for additional single-family development and the presence of multi-family
zoning in many single-family neighborhoods, future residential development
in Huntington Beach can be expected to consist largely of multi -family
units.
TABLE 15
CITY OF HUNTINGTON BEACH
HOUSING TRENDS: 1980-1988
No. of Housing Units Change 1980-1988
Housinq Type 1980 a 1988 b #
Single-Family 38,644 42,326 3,682 9.5%
Multi -Family 22,245 25, 170 2,925 13.1%
Condominium -- (13,151) (c)
Mobile Homes 2,667 2,683 16 0.6%
Total Housing Units 63,686 70, 179 67493 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.
4-2
t
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.
4-3
mF
CITY TOTALS: 68,395 HOUSEHOLDS
sp c°`OF�� �!'♦,°•;• y�y\ //^°•:♦ ■�■�• 36,502 OWNERS (53.4%) 31,893 RENTERS (46.6%)
�♦ P
e° r'O• 10,239 OWNERS (49.4%) '•;\ � rs '•�
10,464 RENTERS (50.6%) e°Gf` °•••• / ••
■ ;tiGf y�O •�\ � �\
NORTH ee`
\ y� CENTRAL °\e 15,245 OWNERS (70.9%) °\
• e
\ e
`\F~G ��/' `.\ Sze j ` °•i� y��G e\`
DOWN- 6,238 RENTERS (29.1%) ` •,
�\ \
, ,\ /TOWN/
\
Meadowlark " O ,\ S SOUTHEAST
WN = '�• \
\ O
/• HARBOR/ ' \ 4,897 OWNERS (31.7%)
moo' \ 6,121 OWNERS (56.8%). \ �\
BOLSA CHICA` ■ °•i ,\
�• •I 10,533 RENTERS (68.3%)
♦♦' 4,658 RENTERS (43.2%) ♦�<� �c \ P %
•
Huntington •♦Pr°• �� GTE\ \ �`P�� o`
�• Harbour •♦ ,\ P
/�_ ♦• �` Edison Company �
I� ♦° B 0 1 5 a C h I C a ,\ Generating •,
a ♦• ♦ Sea Cliff Plant PACIFIC •
r. ♦• • Country Club t •
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Ay
■-_�� ------------e---• ---------
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_ -- P A C F I C O C E A N
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FIGURE 5
HOUSING TENURE:1988
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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 Mntified the
number of housing units in Huntington Beach in substandard condition,
as presented in Table 17. The overall quality of the City's housing stock
'— is relatively high, with only a small percentage of units needing
replacement or rehabilitation. Of the City's 1988 housing stock, only
(a) The City uses the definition of substandard as established in the
Uniform Building Code and is generally interpreted to mean a
dysfunction or failure of any one major building system (e.g. roof,
plumbing, electrical , or heating) . The City also uses HUD Housing
Quality Standards to determine substandard conditions when the UBC is
not specific in certain areas.
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.
4-6
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O
'♦♦ ♦'ei J� sr i
Oakview Redevelopment Area
Washington Enhancement Project •
Liberty Enhancement _
South Shore Enhancement Project
'`f�LF �P♦��� �r�0��� Area 5����� 'Lf� ♦i
P ♦
♦ Meadowlark
Airport Commodore Enhancement Project , ;♦
♦, i
Huntington Harbour Oldtown Enhancement Project
,♦ ,♦
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■
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FIGURE 6
COMMUNITY AND NEIGHBORHOOD ENHANCEMENT AREAS
r }
1 . Washington Enhancement Project
Housing Mix:
Unit Type Number of Units
Single-Family 16
_ Duplex 4
Tri -Plex -
Four-Plex 4
5-9 Units 10
10+ Units -
Total 34
Age of Units:
40-50 years old
History and Current Status of Area:
The Washington Enhancement Project Area was created during the early
1980s. Rehabilitation efforts were sparked by a series of modest public
improvements to streets and sidewalks which motivated local property
owners to renovate their homes and yards without further City involvement.
While the City has offered low interest loans to aid homeowners in the
rehabilitation of their property, only two loan applications have been
received, and they were subsequently withdrawn. All residential
improvements in this area have been initiated through private funds.
Public improvements to the Wahington Enhancement Area were successfully
completed in 1984. Low interest rehabilitation loans will continue to be
offered to homeowners.
2. Liberty Enhancement Project Area
Housing Mix:
Unit Type Number of Units
Single-Family 42
Duplex 38
Tri-Plex 17
Four-Plex 44
5-9 Units 19
10+ Units -
Total 160
Age of Units:
30-35 years old
4-8
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.
4-9
Rehabilitation efforts in Commodore Circle are still in progress.
Although rehabilitation activities are not yet complete, the efforts have
dramatically improved the appearance and quality of housing in Commodore
Circle for area residents. Also, a recreation lot development as
neighborhood recreation area will be completed by 1990.
4. Townlot Enhancement Project Area
Housing Mix:
Unit Type Number of Units
Single-Family 979
Duplex 468
Tri-Plex 160
Four-Plex 614
5-9 Units 608
10+ Units 379
Total 3,208
Age of Units:
70 years to current construction
History of Currrent Status of Area:
The units in the Townlot Redevelopment Area were originally constructed in
the 1920s and 1930s. As the City grew and public and private interest
focused on new development, this area became neglected and began
deteriorating. It was not until the early 1970s that a City-initiated
rehabilitation effort was made. The City offered low interest loans to
property owners to improve their property. While the City has offered low
interest loans for property improvements, most of the redevelopment
efforts are now privately funded.
Rehabilitation efforts are continuing in the Townlot area. As in the
past, the City continues to provide low interest loans for rehabilitation
efforts in the area. The City has also made several public improvements
throughout the Townlot area such as improvements and repairs to existing
roads. The City has also made an effort to widen every alleyway to 20
feet.
Recent increases in land values and new home sales prices has stimulated
privately-financed rehabilitation in this area.
4-10
x
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 Redevlopment Project Area
Housing Mix:
Unit Type Number of Units
Single-Family 33
Duplex 47
Tri-Plex 18
�— Four-Plex 390
5-9 Units 158
10+ Units -
Total 646
Age of Units:
25-30 years old
4-11
History and Current Status of Area:
The Oakview Redevelopment Project Area was formec' 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.
4-12
= t
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
}
c $100 000
9
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f
—. 0
$
Anaheim Costa Fountain Hntngtn Newport Santa Wstmstr. Orange Co.
Mesa Valley Beach Beach Ana
4-13
S S
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.
4-14
= 4
-- The following sections discuss the characteristics of single-family sales
in each of the four subareas in the City. Figure 7 depicts level of
single-family sales activity, as well as unit sales prices in each of the
_ four subareas in the City.
DOWNTOWN/OLD TOWN:
Homes sold in Downtown/Old Town comprised 19 percent of all sales in
Huntington Beach in 1988. Homes ranged in value from a median of $185,000
for a one-bedroom dwelling to $535,250 for a dwelling with 5+ bedrooms,
representing the widest price range in the City. The median selling price
for a single-family home in this subarea is $260,500, substantially higher
than the City-wide median of $222,000. The large median home size of
1 ,885 square feet lends further evidence homes sold in the Downtown/Old
Town area are generally larger and more expensive than in most other areas
of Huntington Beach.
TABLE 20
'CITY OF HUNTINGTON BEACH
SINGLE-FAMILY RESIDENTIAL SALES: DOWNTOWN/OLD TOWN
Number of Number Home Prices
Bedrooms Sold Median Average Range
1 16 $185,000 $202,250 $70,500 - $365,000
2 118 $267,500 $260, 136 $127,600 - $469,500
3 269 $245,000 $270,748 $129,900 - $712,400
4 Ill $275,000 $333,567 $122,000 - $969,500
5+ 36 $535,250 $543,575 $229,000 - $995,500
Totals 550 $260,500 $297,418 $70,500 - $995,500
Number of Square Footage
Bedrooms Median Average Range
1 726 816 441 - 1 ,952
2 1,561 1,624 628 - 2,727
3 1,794 1,842 960 - 3,543
4 2,151 2,309 1 ,207 - 4, 196
5+ 3,752 2,506 1,885 - 5, 105
Totals 1 ,885 1,969 441 - 5, 105
Source: California Market Data Cooperatives, Inc. , Single-Family
Residential Sales Data Quarterly Reports for 3/88 - 12/88.
Compiled by Cotton/Beland/Associates, Inc.
4-15
`°�oFti /:•^; eF�`y\ / �.:...• CITY WIDE TOTALS
, # No. Sold: 2,885
41P� •� Median Sales: $2221000
r: No. Sold: 925 B •\, •,
Median Sales:$193,900 '`F"F G`F�� •••: ,L �
\`\ // •\
NORTH / •.
CENTRAL • :\ °•,
DOWN- ,��,� S�QF •:
\ \ TOWN/ \ p •:\
•
�. Meadowlark '\ ,\ OLD- SOUTHEAST
\ •,
/�.• \ Airport /"\ \ TOWN
/:•%•HARBOR/\ / \ - -,•;\ �\ e No. Sold: 944
No. Sold: 466 o< o Median Sales: $220,000
�....e N•. fp�� No. Sold: 550 '\ p�`p
Huntington
Median Sales:$335 000 • •'l T. �•
•��Median Sales: $260 500 �\ °
� Edison Company :
I■ i s\ Generating es
. ,. Bolsa Chica °
♦ Sea Cliff Plant#� PACIFIC
r: °•° Country Club \ 4 •
■ • Preserve •
�C .--.♦ueee_=�■•-�-_s. .■ ..e-_�.....u=_.y`..ee.e..e.n.ee...a.ee■�•• COAST MGHW��-/- ---_-
P A C F I C O C E A N
0 3636
�C K North scale In feet
FIGURE 7
MEDIAN SINGLE FAMILY RESIDENTIAL SALES PRICES:1988
r
� a
HARBOR/BOLSA CHICA:
Although the Harbor/Bolsa Chica neighborhood comprised the smallest
portion (16%) of single-family homes sold during the time period, it was
the location of the most expensive single-family home sales in Huntington
Beach. With a median sales price of $335,000, this area exceeded the
- median sales price of the City by $113,000. All ten of Huntington Beach's
one million dollar-plus homes sold in 1988 were located in the
Harbor/Bolsa Chica subarea. Sales ranged from a median of $250,000 for a
one-bedroom home to $475,000 for a home with 5+ bedrooms. With a median
- home size of 2,099 square feet, unit sizes in the Harbor/Bolsa Chica
neighborhood were significantly larger than in other parts of the City.
TABLE 21
CITY OF HUNTINGTON BEACH
SINGLE-FAMILY RESIDENTIAL SALES: HARBOR/BOLSA CHICA
Number of Number Home Prices
Bedrooms Sold Median Average Range
- 1 1. $250,000 $250,000 $250,000 - $250,000
2 47 $225,000 $273,874 $97,000 - $875,000
3 152 $241,000 $333,522 $108,500 - $1,325,000
4 249 $375,000 $434,469 $176,000 - $2,400,000
5+ 17 $475,000 $552,441 $225,000 - $1,000,000
Totals 466 $335,000 $389,253 $97,000 - $2,400,000
Number of Square Footage
Bedrooms Median Average Range
1 482 482 482 - 482
2 1,547 1,460 527 - 3,012
3 1,808 1,859 1,031 - 5,252
4 2,423 2,455 1,268 - 7,640
5+ 3,261 3,264 2,235 - 4,897
Totals 2,099 2, 186 482 - 7,640
Source: California Market Data Cooperatives, Inc. , Single-Family
Residential Sales Data Quarterly Reports for 3/88 - 12/88.
Compiled by Cotton/Beland/Associates, Inc.
_ 4-16
NORTH CENTRAL:
North Central Huntington Beach was the location for 32 percent of all
homes sold in 1988. This area exhibits the lowest median sales price in
the City, $193,900, and the smallest range in selling prices, ranging from
a median of $154,900 for a two-bedroom unit to $255,000 for a unit with 5+
bedrooms. This area also contains the smallest sized homes, with a median
home size of 1 ,392 square feet, along with the smallest range in median
home sizes. This data indicates a fairly homogeneous, lower-priced
housing stock in North Central Huntington Beach.
TABLE 22
CITY OF HUNTINGTON BEACH
SINGLE-FAMILY RESIDENTIAL SALES: NORTH CENTRAL
Number of Number Home Prices
Bedrooms Sold Median Average Range
1 0 $0 $0 $0 - $0
2 26 $154,900 $168,100 $90,000 - $375,000
3 462 $185,000 $193,858 $63,000 - $435,000
4 392 $200,000 $218,214 $107,500 - $395,000
5+ 45 $225,000 $259,951 $178,000 - $490,000
Totals 925 $193,900 $206,671 $63,000 - $490,000
Number of Square Footage
Bedrooms Median Average Range
1 0 0 0 - 0
2 1, 100 1,220 782 - 2,229
3 1 ,285 1,369 928 - 2,229
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.
4-17
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
Bedroor :. Sold Median Average Range
1 7 $75,000 $73,457 $63,000 - $78,700
2 85 $153,000 $147,676 $71,500 - $281,500
3 370 $199,500 $200, 126 $84,500 - $555,000
4 391 $258,000 $264,063 $73,500 - $870,000
5+ 91 $269,500 $269,291 $159,000 - $400,000
Totals 944 $220,000 $227,614 $63,000 - $870,000
Number of Square Footage
Bedrooms Median Avera;-c 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.
4-18
g
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.
4-19
The level of condominium activity, as well as unit sales prices, varies
among geographic areas in Huntington Beach, as depicted in Figure 8. The
following sections discuss the characteristics of condominium sales in
each of the four subareas in the City.
DOWNTOWN/OLD TOWN:
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 $S0,000 - $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.
4-20
sQ4 �' Fs � \.�.�,% •�;• ��"'�;� CITY-WIDE TOTALS
�`�, ;•� ,•'� '\ .l•' �' No Sold: 825
• •\/.% ,/ j Median Sales: $158,000
N o. Sold: 95 •:* ��� Qs.� '•�
Median Sales: $127,900 •° ,
NORTH
CENTRAL
\ � E� /\ y����- '��✓ No. Sold: 191
DOWN-, Median Sales: $144,000 °
TOWN/
J.� Meadowlark '\ OLD- SOUTHEAST/�•. Airport /"\ TOWN L
.�1•'• `\. / ,\ ,\ ,\,
�• HARBOR/�. / `\% -0 \ �;
BOLSA CHICA : n
' I
.wr•�ONo. Sold: 217!O�® '!°•i o-��� \. P
':• Huntington .) P \
/. Harbour Median Sales: '$155,660' Y" `' ,\
I//• .° Edison Company �\
■ °• B o l s,a C h i ca Genera[in •
r� .° r `♦ Sea Cliff ,\ g °.
Ja °o° Pre s e r v e ^`0 Country Club \ Plan
t# PAOf1C
P��a�r:..;..,....■■ . ...... •'� `•.• No. Sold: 322 ® %\ �° _�__-- ■
■u• ■�� sr..euue■ ..1 � •
_=���aaro�o■per.r. ',`O•� Median Sales: $175,000, MGH`N pY _�-�-�---
■ `��- s.��r...=��.ar.•r..` COAST _�_�_—
P A C F I C O C E A N
p3636 ,
K North. �elh■�t ail
FIGURE 8
MEDIAN CONDOMINIUM SALES PRICES:1988
a
r
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.
4-21
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.
4-22
I f
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.
4-23
1 ti
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
d $400
0.
PIT
Eli-
c
300
0 s
U
2 00 �
C
a
X
61
%t
S
' J
$1 0 O
<.
d$
Y z
i
0 lo
Anaheim Costa Fountain Hntngtn Newport Santa Wstmstr. Oran geCo.
Mesa ValleY Beach Beach Ana
4-24
+ t
In order to update information on rental costs in Huntington Beach, data
has been compiled from advertised rental units in the Sunday editions of
the Orange County Register newspaper between January through December
1988. As presented in Table 30, nearly 60 percent of all units advertised
were two bedroom units. Median rents for the 296 units sampled vary from
$525 for a studio to a high of $950 for a unit with 3+ bedrooms.
TABLE 30
CITY OF HUNTINGTON BEACH
MONTHLY RENTAL RATES: 1988
Number of Number of
Bedrooms Units Median Average Range
Studio 6 $525 $505 $475 - $525
1 67 $630 $675 $525 - $770
2 173 $750 $783 $550 - $1 ,250
3+ 50 $950 $847 $525 - $1,400
Totals 296 $750 $764 $475 - $1,400
Source: Orange County Register, Sunday Editions:
1/3/88, 4/3/88, 8/7/88, 12/4/88.
Compiled by Cotton/Beland/Associates, Inc.
In addition to rental unit size, rental rates also differ by geographic
location in the City. Figure 9 illustrates median rents for each of the
four subareas. Median rents varied from $700 in North Central Huntington
Beach to $850 in the Harbor/Bolsa Chica subarea, with median rents in
Downtown/Old Town ($725) and Southeast Huntington Beach ($770) falling in
between those two extremes. As depicted in Table 31, the majority of the
units advertised during the time perod are located in Downtown/Old Town
(39%) and North Central Huntington Beach (31%) . Multi-family rental units
in Downtown/Old Town present the greatest variety, ranging from beachfront
studios to dwellings with three bedrooms. The North Central , Southeast
and Harbor/Bolsa Chica areas are comprised primarily of two- and
three-bedroom units. The proximity to amenities such as Huntington
-- Harbour and/or the beach in the Southeast and Harbor/Bolsa Chica enable
these areas to command higher market rents.
4-25
8�, w
°� ^; cy / ♦•: -= CITY-WIDE MEDIAN RENT: $750
Q7���1•♦♦♦14♦♦♦.` ,fee ,\ :•e• •♦��e• -�, B // -
B°psi li �i�: '�, .•.\
I■ G O ♦ �
i P ��f G�fL •♦ �
r■ tiLf y,�o .�\ � ..\
NORTH /
CENTRAL ♦'.\ -
fti
DOWN
TOWN/ \ ♦�
je Meadowlark '\ OLD- \ SOUTHEAST
.\ TOWN ��' $770 ♦° ♦\
• m�
�i•' HARBOR/\ / 1%
BOLSA CHICA .�'�':\
�;.•' , �.•e j \
1• Huntington •elrr.s r■■uuu■uu■.
■■ ■s■ �� O!� `\ �P��
1 T
/i Harbour •e• ..� ,\ Edison Company ♦\
I/ate ee•' B O I S d C h i C d. Sea Cliff ,\ Generating
Plant PACt '
r� •e• Country Club \ 4
I■ a Preserve •. . ®•No;
• •.■■ . .
...............
♦•• COAST �W^�
P A C F I C O C E A N
p 3636
North scale in tees
FIGURE 9
MEDIAN RENTAL RATES:1988
a
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 31A
CITY OF HUNTINGTON BEACH
1989-1994 HOUSEHOLD NEEDS BY INCOME GROUP
Very Low (0-50% County median income 984 (15.8%)
Low (50-80% County median income) 1,264 (20.3%)
Moderate (80-120% County median income) 1,370 (22.0%)
Upper (over 120% County median income) 2,610 (46.9%)
'- Total Households 6,228
Source: SCAG Regional Housing Needs Assessment, June 1988 (Draft)
4-26
C a
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
32 presents a comprehensive list of the affordable housing projects which
have been developed either within the City's coastal zone, or within three
miles of its boundary, since January 1, 1982. In addition to the
affordable units provided in these projects, 138 units affordable to low
and moderate income households have been provided through the City's
density bonus program.
Since January 1 , 1982, the following dwelling units have been constructed
in the coastal zone:
° 612 single family homes
283 condominium units
° 177 apartment units
4-27
r
TABLE 32
CITY OF HUNTINGTON BEACH
AFFORDABLE HOUSING PROJECTS WITHIN
THREE MILES OF COASTAL ZONE
Total
Number Affordable
Project Name of Units Units Location
For Purchase:
Huntington Bayshore 159 34 Lake and Atlanta
Pacific Ranch 558 100 Yorktown and Lake
Seabridge 200 160 Adams and Beach
Cabo Del Mar 230 188 Warner and Bolsa Chica
Harbor Point 102 31 Warner and Green
For Rent:
Bond issue for multi -family units. 20% are set-aside at affordable
rental rates.
Huntington Beach Breakers 342 85 Atlanta and Beach
Rivermeadows 152 30 Magnolia and Warner
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 Beach
Source: City of Huntington Beach Department of Economic Development
4-28
1 �
-- 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 33, Huntington Beach's employment
base grew by 4,070 jobs between July 1980 and January 1984. During this
period, only the Agriculture, Government, and Uncoded sectors of
employment showed a decrease in the number of jobs.
As this table reveals, the thrust of Huntington Beach's economic activity
is in the manufacturing and retail industries. Although these two sectors
comprise more than half of the City's employment opportunities, Huntington
-- Beach still maintains a very diversified employment base. During the four
year period, the wholesale (42%) , finance/insurance/real estate (23%) , and
mining (22%) industries all experienced substantial increases in the
number of jobs created within the City. With the continued
diversification of the local economy attracting a greater variety of
non-skilled, semi -skilled, and professional workers, the City should
endeavor to provide a range of housing opportunities and choice.
5-1
TABLE 33
CITY OF HUNTINGTON BEACH
EMPLOYMENT TRENDS: 1980 & 1984
July January % Change
- Industry 1980 1984 1980-1984
Agriculture 425 349 -17.9%
Mining 287 350 22.0%
Construction 1,794 1,997 11 .3%
Manufacturing 11,860 13,177 11 . 1%
Trans/Pub. Utilities 1 ,992 2,058 3 .3%
Retail Trade 10,088 11,444 13.4%
Wholesale Trade 1,354 1,923 42.0%
Fin/Ins/Real Estate 1 ,992 2,454 23.2%
Services 6,585 7,634 15.9%
_ Government 7,346 6,422 -12.6%
Uncoded 24 9 -62.5%
— TOTAL: 43,747 47,817 9.3%
Total County Employment 5.2% 5.2% --
- Source: State Employment Development Department
Jobs/Housing Balance
Another measure of the balance of a community's employment opportunities
with the needs of its residents is through a "jobs-housing balance" test.
A balanced community would have a match between employment and housing
opportunities enabling most residents to also work in the community. SCAG
has identified as a goal for the Nor hwest Orange County subregion an
employment to housing ratio of 1 .44. a) Comparing the number of jobs in
Huntington Beach in 1984 (47,817) to the number of housing units (66,335)
indicates a job-housing ratio of .72 for the City. This low ratio would
indicate Huntington Beach is housing-rich, and should increase its
employment base to attain a more balanced community. However, since the
City is located in a job-rich subregion (Northwest Orange County had a
job-housing ratio of 1 .34 in 1984) which is projected to experience an
even greater rate of employment growth through 2010, Huntington Beach's
housing-rich characteristic helps achieve the desired jobs/housing balance
for the entire Northwest Orange County subregion.
(a) Draft Growth Management Plan, Southern California Association of
Governments, October 1988, Page VII-11 .
_,. . 5-2
t
-- 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 'o 50
percent of the sales price of a home. Overall construction costs rose over
30% percent between 1980 and 1988, with the rising costs of energy a
significant contributor. Construction costs for wood frame, single-
family construction of average to good quality range from $40 to $55 per
square foot, custom homes and units with extra amenities running somewhat
higher. Costs for wood frame, multi -family construction average around
$42 per square foot, exclusive of parking.
A reduction in amenities and quality of building materials (above a
minimum acceptability for health, safety, and adequate performance) could
result in lower sales prices. Additionally, pre-fabricated, factory built
housing may provide for lower priced housing by reducing construction and
labor costs. An additional factor related to construction costs is the
number of- units built at the same time. As the number of units developed
increases, construction costs over the entire development are generally
reduced based on economies of scale. This reduction in costs is of
particular benefit when density bonuses are utilized for the provision of
affordable housing.
Land: Land costs include the cost of raw land, site improvements, and all
costs associated with obtaining government approvals. The limited supply
of developable vacant land in Huntington Beach has accounted for a steady
increase in raw land costs. Residential land in Huntington Beach cost an
average of $6 to $8 per square foot in 1984, whereas land costs in 1989
averaged between $10 and $13 per square foot' on parcels with single-family
zoning and $20 and $25 per square foot on parcels zoned for multi -family
development. It is estimated that these costs contribute 20 to 25 percent
to the final sales price of a new home. Left alone, the rapidly
escalating market price of land will tend to encourage mainly higher
priced development. Higher density zoning could reduce the cost per unit
of land, but land zoned for higher densities commands a higher market
price. For this reason, density bonuses rather than zoning changes may be
the preferred vehicle for reducing land costs.
6-1
r
Labor Costs: Labor is the third most expensive component in building a
house, constituting ai, estimated 17% of the cost of building a single-family
dwelling. The cost of union labor in the construction trades has increased
steadily since April 1974. The cost of non-union labor, however, has not
experienced such significant increases. Because of increased construction
activity, the demand for skilled labor has increased so drastically that
an increasing number of non-union employees are being hired in addition to
unionized employees, thereby lessening labor costs .
Financing: While interest rates have fallen more than 10 percent from
their near 20 percent high in the early 1980s, they still have a
substantial impact on housing costs which is felt by renters, purchasers
and developers. It should be noted that some mortgage financing is
variable rate, which offers an initial lower interest rate than fixed
financing. The ability of lending institutions to raise rates to adjust
for inflation will cause many existing households to overextend themselves
financially, as well as returning to a situation where high financing
costs substantially constrain the housing market. An additional obstacle
for the first-time home buyer continues to be the 10-20% downpayment
required by lending institutions.
The median sales price of a single-family home in Huntington Beach (1988)
was $222,000. A $199,800 mortgage amortized over 30 years at an interest
_ rate of 10.5% would result in monthly house payments of $1 ,827. This
level of payment eliminates Huntington Beach's very low, low and moderate
income households from the for-sale housing market. Condominiums do,
however, offer an alternative homeownership opportunity for many of the
City's moderate income households.
Interest rates are determined by national policies and economic
conditions, and there is little that local governments can do to affect
these rates. Jurisdictions can, however, offer interest rate write-downs
to extend home purchase opportunities to lower income households. In
addition, government insured loan programs may be available to reduce
mortgage downpayment requirements.
Profit, Marketing and Overhead: Developer profits generally comprise
10-15% of the selling price of single-family homes and Blighty lower for
condominiums. However, in communities like Huntington Beach where the
market demand for housing is high in comparison to the available housing
supply, and home purchasers often desire more amenities, developers are
able to command higher prices and often realize greater margins of profit.
Rising marketing and overhead costs have contributed to the rising costs
of housing. Inflation has spurred much of the increase in marketing and
overhead. Intense competition among developers has necessitated more
advertising, more glamorous model homes and more expensive marketing
strategies to attract buyers.
6-2
V
— 6.2 Governmental Constraints
Housing affordability is affected by factors in both the private and
_ public sectors. Actions by the City can have an impact on the price and
availability of housing in the City. Land use controls, site improvement
requirements, building codes, fees and other local programs intended to
improve the overall quality of housing may serve as a constraint to
housing development.
Availability of Land
The Land Use Element of the General Plan and corresponding zoning provide
for a full range of residential types and densities dispersed throughout
— the City. Densities range from 0-4 units per acre in areas designated for
Estate Residential to 35 units per acre in areas designated for High
Density Residential . Table 34 presents the amount of acreage allotted to
each residential land use category in the City's General Plan. As
indicated by this table, over half the City's land area is planned for low
density residential use, evidenced by the predominance of detached
single-family homes in Huntington Beach. Considerably less acreage is
planned for medium and high density uses, which characteristically provide
condominium and apartment units. Three acres of land have been designated
to accommodate a specific senior residential project. The areas of the
— City designated for Mixed Development and Planned Community allow for a
mixture of residential uses, densities, and housing types.
— As an older City, much of the land designated for residential development
is already built out. In addition, a great deal of the City's vacant land
is subject to development constraints related to oil production, flood
plain regulations and fragmented ownerships, thereby limiting their
development in the near future. Of the City's total 725 vacant
residential acres (refer to Section 7. 1 , Table 38) , only 479 acres can be
considered unconstrained and suitable for development within the next five
years. Additional residential development in the City will , however, be
accommodated through several other means, including development on
underutilized residential parcels, on non-residential land, and on surplus
school sites. Considering the potential residential development from all
these sources, a total of 6,927 additional dwelling units could be
accommodated in Huntington Beach under the current General Plan and zoning
(refer to Table 40) . SCAG has estimated a future housing need of 6,222
new units in the City through the year 1994. The Plan thus provides for a
residential development capacity which is more than adequate to serve
projected future housing demand. The Land Use Plan cannot therefore be
-- interpreted as a constraint to the provision of affordable housing,
particularly since 3,676 units are designated for higher density housing
(Medium-High and High Density Residential ) , and can be more readily be
priced to meet the needs of lower income households.
6-3
� r
TABLE 34
CITY OF HUNTINGTON BEACH
RESIDENTIAL DEVELOPMENT CAPACITY OF LAND USE PLAN
Total Acreage % of Total
Land Use Catagory Permitted Density Designated City Acreage
Estate Residential 4 units/gross acre 287 1.7%
Low Density Res. 7 units/gross acre 8,645 50.3%
Medium Density Res. 15 units/gross acre 1,968 11 .5%
Med-High Density Res. 25 units/gross acre 42 0.2%
High Density Resid. 35 units/gross acre 603 3.5%
Senior Residential varies 3 . 1%
Mixed Development varies 95 0.6%
Planned Community varies 275 1 .6%
TOTAL 11,918 69.5%
Source: City of Huntington Beach Planning Department.
Fees and Improvements: Various fees and assessments are charged by the
City to cover the costs of processing permits and providing services and
facilities, such as utilities, schools and infrastructure. Almost all of
these fees are assessed through a pro rata share system, based on the
magnitude of the project's impact or on the extent of the benefit which
will be derived. However, these fees contribute to the cost of housing
and may constrain the development of lower priced units. Certain fees
could be waived or subsidized by the City for the provision of lower
income and senior citizen housing.
The majority of the Huntington Beach jurisdiction is highly urbanized with
most of its necessary infrastructure, such as streets, electrical and
water facilities, already in place. As such, the cost of land improvements
is less than in undeveloped suburban or rural areas. Tables 35 and 36
present a comprehensive list of typical development fees associated with
4.5 unit/acre single family development and with a 30 unit/acre
multi -family project. Development fees for single family construction are
estimated at $10,399 per unit, whereas fees associated with multi-family
construction are significantly lower at $4,827 per unit. This price
differential reflects the fact that as land use densities increase, the
proportion of the cost borne by each unit decreases. The most significant
project development fees are school fees, parks and recreation fees,
County sanitary sewer fees, and drainage fees.
Building Codes and Enforcement: The City of Huntington Beach has adopted
the State Uniform Building, Housing, Plumbing, Mechanical and Electrical
Codes. These codes are considered to be the minimum necessary to protect
the public health, safety and welfare. The local enforcement of these
codes does not add significantly to the cost of housing.
6-4
Local Processing and Permit Procedures: The evaluation and review process
required by City procedures contributes to the cost of housing in that
holding costs incurred by developers are ultimately manifested in the
unit' s selling price. The review process in Huntington Beach is governed
by two levels of decision-making bodies: the City Council and the
Planning Commission.
One potential way to reduce housing costs is to reduce the time for
processing permits. Table 37 presents a comparison of average development
processing times in Huntington Beach with several surrounding communities.
As this table illustrates, development processing times in Huntington
Beach are at a minimum and compare favorably with other communities. As
review times are already streamlined in the City, cost savings from "fast
track" processing would be minimal . Nonetheless, as land holding costs
can run over $1,000 per unit for a 9 to 12 month period, the City may wish
to consider priority development review processing for low and moderate
income housing applications.
6-5
TABLE 35
CITY OF HUNTINGTON BEACH
SUMMARY OF DEVELOPMENT FEES FOR TYPICAL
LOW DENSITY RESIDENTIAL PROJECT
Type of Fee Cost Per Unit
Planning/Building Fees
Tract Map $ 17.83
Conditional Use Permit 11 .67
Inspection 597.60
Plan Check 388.44
Strong Motion 8.85
Library 250.00
Processing 10.00
School Fee 3,150.00
Parks and Recreation 2,395.00
Electrical Permit 153.44
Mechanical Permit 58.32
Plumbing Permit 107.50
Fence Permit 45.90
Subtotal $ 7, 194.55
Public Works Development Fees
Sewer - City 150.00
County 1,500.00
Subtotal $ 1,650.00
Water 60.00
Drainage 1,330.00
Grading 30.00
Street Plans 45.00
Parcel Map - Plan Check NA
Tract Map - Plan Check 90.00
Subtotal $ 3,205.00
TOTAL $ 10,399.55 Per Unit
$ 46,797.98 Per Acre
Source: City of Huntington Beach Department of Community Development
Calculations based on:
(a) 2, 100 square foot living area/400 square foot garage.
(b) 4 bedrooms, 30-lot subdivision at 4.5 units/acre.
(c) Type V construction.
(d) Building valuation = $126,380.
6-6
TABLE 36
CITY OF HUNTINGTON BEACH
SUMMARY OF DEVELOPMENT FEES FOR TYPICAL
HIGH DENSITY RESIDENTIAL PROJECT
Type of Fee Cost Per Unit
Planning/Building Fees
Tract Map $ 13.00
Conditional Use Permit 11 .67
Inspection 346.80
Plan Check 225.42
Strong Motion 7.89
Library 130.00
Processing 10.00
School Fee 225.00
Parks and Recreation 1 ,662.00
Electrical Permit 122.75
Mechanical Permit 46.66
Plumbing Permit 86.00
Fence Permit 8.46
Subtotal $ 2,895.65
Public Works Development Fees
Sewer - City 150.00
County 1 ,500.00
Subtotal $ 1 ,650.00
Water 60.00
Drainage 200.00
Grading 5.00
Street Plans 7.00
Parcel Map - Plan Check NA
Tract Map - Plan Check 10.00
Subtotal $ 1 ,932.00
TOTAL $ 4,827.65 Per Unit
$144,829.50 Per Acre
Source: City of Huntington Beach Department of Community Development
— Calculations based on:
(a) 900 square foot living area/400 square foot garage.
(b) 2 bedrooms, 1-lot subdivision at 30 units/acre.
(c) Type V construction.
(d) Building valuation = $52,580.
6-7
TABLE 37
DEVELOPMENT PROCESSING TIME IN HUNTINGTON BEACH
AND SURROUNDING COMMUNITIES
(in months)
Hunt. Costa Newport Orange
Beach Mesa Irvine Beach Count
General Plan Amendment 4 6-8 8-12 6-8 12-24
Zone Change 1 .75 6-8 6 4-6 3-4
EIRs 4 1-2 4-6 1 3-4
Tentative Tracts 1 .75 6-8 6-12 6-12 1-2
Site Plan Review 1 1-2 3-4 2-3 1-2
(Staff)
Site Plan Review 1 .5 1-2 3-4 2-3 1-2
(Comm. )
Plan Checking/ 2 1 1-2 1
Building Permits
Source: Huntington Beach Department of Community Development;
Cotton/Beland/Associates, Inc.
6-8
6.3 Environmental and Infrastructure Constraints
Portions of Huntington Beach are exposed to a variety of environmental
_ hazards and resources which may constrain the development of lower priced
units. In addition, deficiencies exist related to the provision of
infrastructure to service new residential development.
Floodplain: Situated on a low-lying plain and bounded by the Santa Ana
River, Huntington Beach faces significant flood hazard. Over half the
City's acreage, and approximately 70-80% of its residentially designated
acreage, falls within the Flood Hazard Zone as defined by the Flood
Emergency Management Agency (FEMA) . FEMA regulations require that all new
resider.'J al 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 wells,
and creation of Specific Plans.
Hazardous Waste: Because of the long history of oil recovery operations
in Huntington Beach, some vacant residential properties contain hazardous
wastes related to abandoned oil wells, oil pipelines, or potential gas
risk. These contaminated sites will require clean up prior to their
development, thus adding to the costs of developing on these sites.
Public Services and Facilities: As a highly urbanized community, most
areas of the City are already served by sewer lines, water lines, streets,
storm drains, telephone, electrical and gas lines. However, a major area
of vacant land east of the Bolsa Chica designated for Residential Estate
6-9
has remained undeveloped due to the lack of water and sewer lines and
storm drains in the area. To facilitate development in this area, the
recently completed Ellis Golden West Specific Plan provides for necessary
infrastructure improvements to be installed over the next few years. This
Specific Plan will also help to alleviate another constraint to
development in this area, fragmented land ownership.
6-10
1 t
7.0 HOUSING OPPORTUNITIES
This section evaluates the potential additional residential development
which could occur under the City's General Plan and zoning on vacant and
underutilized land.
Vacant Sites
Vacant land planned for residential development is relatively scarce in
Huntington Beach. Approximately 725 acres, or six percent, of the City's
total 11 ,918 residential acres are currently vacant. Under existing
zoning and general plan designations, these residential acres could
support a maximum buildout of 7,587 additional housing units. However, as
_ discussed in the previous section on environmentally constrained lands,
much of the City's vacant residential land has been subject to
development constraints related to oil production and fragmented
ownerships. The City is actively working with property owners to remove
these constraints by creating an oil consolidation site, developing
specific standards to ensure compatibility between oil islands and
residential uses and through implementation of Specific Plans. Through
the City's activities, the following four areas which had previously been
constrained due to oil production activities will now be available for
residential development. These areas are illustrated in Figure 10, <:.nd
their dwelling unit capacity described below:
Area #1: This parcel is approximately 19.69 acres in size and is
designated for High Density Residential , permitting up to 35 dwelling
units per acre. While the property has been historically utilized for
oil production, the few oil wells remaining on the site are in the
process of being removed. The property owner has submitted development
_ plans to the City .-or 331 attached townhome units on the site.
Construction of these units is anticipated to begin in Spring 1990.
Area #2: The Redevelopment Agency is currently working with a private
oil company in developing an oil consolidation site in downtown
Huntington Beach. Existing oil facilities located on the 20.72-acre
Area #2 site are to be relocated on the oil consolidation site.
Existing High Density Residential zoning on the site would perrlit the
development of approximately 725 multi -family dwelling units on the
property.
Area #3: This area consists of approximately 47.62 acres designated as
Residential Estate Density (2 du/acre) . The site is located in the
Holly-Seacliff Master Plan area adjacent the proposed linear park.
While the area had previously been identified as constrained by oil
production, the Master Plan provides for mitigation of oil constraints,
through abandoning some wells and creating "oil islands" with remaining
on-site oil facilities. By mitigating restrictions on development,
approximately 95 single-family dwelling units will be able to be
accommodated on this site.
7-1
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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 38 provides a breakdown of the number and type of additional
residential dwelling units which could be constructed in Huntington Beach
under the General Plan. Of the City's total 725 vacant residential acres,
478.8 acres can be considered unconstrained and available for development
over the five-year period of the Housing Element. This acreage will
support a maximum buildout of 4,997 dwelling units, ranging in density
from 2 to 35 units per acre. Nearly half (45 percent) of the potential
dwelling units are the Medium-High and High Density residential land use
categories, providing opportunities for lower cost housing development.
_ Approximately one-quarter of these potential units are designated for
Medium Density Residential , indicating a significant proportion of future
residential growth will be in the form of duplexes and townhomes and lower
density apartments and condominiums. Single-family homes will comprise
approximately one-quarter of the City's future residential growth. A
recently-adopted Specific Plan for the Ellis West area will serve as a
vehicle for consolidating land ownerships, providing for approximately 600
_ residential estate dwelling units.
Underdeveloped Sites
In addition to development on vacant lands, there is the potential for new
residential development on sites which are currently developed at
densities lower than those permitted under the General Plan and zoning.
In the Townlot, Oldtown and Downtown areas, many of the areas designated
for densities of 15 units/acre are currently developed with single-family
and lower density multi -family uses. Recycling of these lower density
uses occurs when the intensity of use allowed in the zone more than
offsets the costs of acquiring the improved site, demolishing the existing
units, and constructing new higher density units. For the past several
years, substantial recycling activity has been occurring in the Townlot,
Oldtown and Downtown areas indicating that permitted densities are high
enough to warrant recycling. Interestingly, while City zoning permits
densities up to 15 units per acre in these areas, the market demand for
single family homes has resulted in the majority of replacement units
developed as single-family detached units. Single-family residential uses
in the Townlot, Downtown and Oldtown areas are predominately developed on
_ 50' x 115' and 25' x 115' sized lots. The recycling trend in these areas
7-3
TABLE 38
CITY OF HUNTINGTON BEACH
VACANT LANDS SUITABLE FOR RESIDENTIAL DEVELOPMENT: 1989
Total Unconstrained
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.
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� s
has been to demolish the existing single-family structure, and replace the
unit with either two or three single-family units. Table lA 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 39
CITY OF HUNTINGTON BEACH
RESIDENTIAL RECYCLING ACTIVITY
(OLDTOWN, TOWNLOT, AND DOWNTOWN AREAS)
— Single-Family Units Recycled to Higher Densities
1988 Jan-June 1989
—" Oldtown 8 8
Townlot 32 17
Downtown 3 1
_ Total 43 26
Source: City of Huntington Beach
Community Development Department
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9 Q
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.
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— 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 r:n average density of 15 du/acre.
The Ascon site has historically been utilized as a landfill , and will
require site clean-up to remove contaminated soil . The applicant is in the
process of preparing a remediation plan for soil clean-up, with site
clean-up estimated to be complete within the next two years. Residential
development on the site will immediately follow site clean-up, and can be
expected to be completed by the end of 1992.
Surplus Land
Two former school sites are presently either under construction or in the
entitlement stage for residential development in Huntington Beach.
Crestmore Estates is a 52-unit low density single-family project which is
now under construction. Heritage Village is a mixed development project
which is still in the entitlement stage. It is a 15.2 acre, 520 unit
residential/commercial project which is proposed at a density of 34 units
per acre. The zoning will be a Specific Plan.
In addition to these school sites, four other residentially-zoned school
-' sites are being proposed for residential development by the school
districts . Huntington Beach Elementary District has proposed 9.75 acres
for residential on its Lebard School site, and Fountain Valley School
District has advertised for bids on its 9.10 acre Bushard School site.
These two sites are both zoned R-1/7du/acre, providing for the development
of 132 dwelling units. Two other surplus school sites, Golden West
College (6.81 acres) and Wintersburg High School (14 acres) , have been
advertised for bids by the school districts. These sites are zoned
single-family residential and residential -agriculture respectively, and
could accommodate a total of 62 dwelling units. However, development
under this twenty year old base zoning would be incompatible given the
location of these sites along major arterials and surrounding higher
densities. These sites will likely be rezoned to accommodate higher
density residential development consistent with their setting.
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e
Bolsa Chica
The Bolsa Chica area is another very significant housing opportunity for
the City. The City has initiated annexation procedures for the 1 ,635 acre
vacant area known as the Bolsa Chica. While nearly two-thirds of the
Bolsa Chica is comprised of a State Ecological Reserve and wetland, the
remaining 400-plus acre- located immediately adjacent exiting residential
neighborhoods, are planned for residential development. 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 are limited to Signal Landmark
Inc. , State Lands Commission, and the Metropolitan Water District; all
have been supportive of annexation to the City. The anticipated time
frame for annexation includes completion of the Final EIS by Fall 1990,
with annexation to occur in late 1990 or early 1991 . Development is
expected -o occur within 3 years and will include a minimum of 3800 and a
maximum of 5700 residential units. A coalition representing five interest
groups (Orange County, State Lands, property owner Signal Landmark, Inc. ,
a citizens interest group Amigos de Bolsa Chica, and the City) is
projecting approximately 4400 residential units; Figure 11 provides a
conceptual plan of development in the Bolsa Chica as proposed by the
coalition. The actual number of units is uncertain at this time because
the cost of restoring the approximately 1100 acres of wetlands is not
known. Some funding may be available from the Los Angeles and Long Beach
ports as a result of wetland mitigation requirements. Should this funding v..
materialize, the restoration costs to the major landowner (Signal
Landmark, Inc. ) would be reduced, thereby allowing development of fewer
units.
City services appear adequate to serve the project development and the City
is participating in the Bolsa Chica traffic modeling project to 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
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Ilk
RESiDEN ITIAL DENSITIES 1\1
UP TO 6.5 DU/AC
1 I UP TO 12.5 DU/AC
j% LINEAR
r'LY'l UP TO 18.0 DUJAC -�%" /�-- .::) \� PARK / -
-- 1111 ®� ESHA
W WETLANDS
ESHA
ACREAGE SUMMARY E
I ��, I°r '• __ _ _ _ _ :> ' ��vr i,':. :�� OPEN SPACE
�
USE TYPE ACRES U LAND
RESIDENTIAL 412.3 ;�.rm\- � .I'.cs'.'_:i^, i-:vim-•t_ - _..._+:-'�' _ /� -
WE-LANDSiESHA/OPEN SPACE 1104.9 `2��;_;_�5-- :\\�• +�``=='" --"' �-^�! -�y p - -' -
LI NEAR P,%RK/E HA 50. „5•_�'. - .�� B'.,.' ' _ - -�� l
7 W ROADWAYS CADWAYS 53.7ff
FLOOD CONTROL CHANNEL .� � y'l �J�•TOTAL 153a 4\ % WETLi ;!ij • -C �//;- �1 i'�; - - ESHA.,. 1' OPEN
/ / C.f
�L lV/i (( �`/t mot•=.'. !a' WETLANDS ESHA / OPEN SPACE
WETLANDS
ESHA
\ C OPEN — —
SPACE
LINEAR
.;.. /+ PARK
/
-- ESHA
_�_� -_ --_. ._ - __ ✓ram- % - � � `•
WETLANDS DS / ESHA
SPACE
_ iNON-NAVIGABLE
_ f
, I1 �(IOCEAN CONNECTION
PACIFIC OCEAN PACIFIC OCEAN
SOURCE: VALE SPECK TAYLOR.
R North :"--`-
�C
FIGURE 11
BOLSA CHICA RESIDENTIAL,DEVELOPMENT PLAN
v
t
a
-- Golden West Specific Plan provides for necessary improvements to be
installed over the next few years. This Specific Plan will also help to
alleviate another constraint to development in this area, fragmented land
_ ownership.
Residential Development Potential Compared with Huntington Beach's
Housing Needs
As indicated in Section 4.5, the Regional Housing Needs Assessment (RHNA)
prepared by SCAG has identifed a future housing need for Huntington Beach
— of 6,228 units to be developed over the next five years (1989-1994) .
Combining the residential development potential on vacant, underutilized,
redevelopment, non-residential and surplus sites, an estimated 7,527
additional units could be developed in the City (refer to Table 40) . This
-" would indicate that the City's General Plan and zoning provide for a
residential development capacity which is adequate to accommodate the
City's share of regional housing needs. In addition, with annexation of
the Bolsa Chica, an estimated 3,800 to 5,700 additional dwelling units
could be accommodated in Huntington Beach.
_ In terms of development opportunities for lower income households,
approximately half of potential residential growth is allocated to higher
density housing (Medium-High and High Density Residential ) , which can more
readily be priced to meet the needs of Very Low and Low Income households.
-' However, even at these higher densities, the City will 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.
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e .
TABLE 40
CITY OF HUNTINGTON BEACH
POTENTIAL RESIDENTIAL DEVELOPMENT SUMMARY
RESIDENTIAL DWELLING UNIT POTENTIAL
Under-
Land Use Vacant utilized Second Redevelop- Non-Resi - Surplus
Category Land Land 'Units ment Areas dential Land Land TOTALS
Residential 605 14 619
Estate
Residential 605 235 25 232 1,097
Low Density
Residential 1 ,169 600 1 ,769
Medium
Density
Residential 439 103 542
Medium-High
Density
Residential 1 ,813 801 520 3,134
High Density
Planned 366 366
Community
TOTALS 4,997 235 25 904 600 766 7,527
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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 tc 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.
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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.
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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 'witl.in
its jurisdiction. More specifically, the City may give careful
consderation to implementing some set of the follow programs:
Adoption of solar systems ordinances. Numerous cities and counties
throughout California have enacted ordinances requiring the use of
solar energy as part of the heating system for new pools and spas .
Many communities have also adopted ordinances requiring solar
domestic hot water heating.
Mandating solar systems through design review process. By requiring
that solar systems be a condition for approval of subdivision maps,
local government would ensure that solar be incorporated into larger
housing developments which comprise a majority of the larger housing
developments in Huntington Beach. In comparison to the
implementation of a solar systems ordinance, this approach would be
simpler and less costly to adminster, but would require more
involvement by the City's planning staff.
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L
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 pro ects;
2) adopt development standards that specify to what extent energy-efficient
design must be incorporated into residential projects; and 3) facilitate
the incorporation of energy concerns into the development review process
by developing a comprehensive list of energy conservation criteria that
could be used in evaluating the energy conserving potential of submitted
plans .
7-15
Another tool for ensuring energy conservation in new development is the
California Environmental Quality Act (CEQA) . Under Appendix F of this
Act, energy use implications must be considered in the drafting of
Environmental Impact Reports. The City could require developers to
submit, as part of their plans, a "statement of energy efficiency" , in
which they must specify the measures taken to minimize energy use in their
proposed development.
Land Use Conservation: Because 42 percent of total energy consumption is
used for local travel , considerable conservation can be achieved by
reducing local travel . Intergrating land uses helps achieve this goal .
Neighborhoods that encompass a mix of residential and service-related land
uses (e.g. : convenience grocery stores, low intensity offices and
commerical space, recreational facilities) promote pedestrian movement and
significantly reduce energy consumption used for travel . Short distance
travel may also be reduced by facilitating bicycle travel . Huntington
Beach is well -suited to bicycl6 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.
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� D
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.
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