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Home My WebLink About2018 03-26 CC MINBook 100 / Page 54 03-26-2018 MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY HOUSING WORKSHOP March 26, 2018 The Special Meeting of the City Council of the City of National City was called to order at 4:06 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council / Board members present: Cano, Mendivil, Morrison, Rios, Sotelo-Solis Administrative Officials present: Dalla, Deese, Morris -Jones, Stevenson, Vergara. PLEDGE OF ALLEGIANCE TO THE FLAG BY MAYOR RON MORRISON CITY WIDE HOUSING ADMIN (303-4-1) 1. Housing Workshop — Presentation — Comprehensive Local Housing Strategy (City Manager) STAFF PRESENTATION: Brad Raulston, National City Assistant City Manager, gave an overview of the meeting and reviewed the challenges involved in developing a Comprehensive Local Housing Strategy and Proposed Local Housing Objectives. Seth Litchney, Senior Regional Planner for the San Diego Association of Governments (SANDAG) gave a presentation on the Regional Housing Needs Assessment (RHNA) prepared by SANDAG. Ray Pe, National City Principal Planner, reviewed the Housing Element in National City's General Plan. Debbie Ruane, Executive Vice President and Chief Strategy Officer for the San Diego Housing Commission, reviewed the Housing Commissions Major Programs, Current Housing Situation, and the San Diego Housing Production Objectives for the period 2018 — 2028. Carlos Aguirre, National City Acting Director of Housing and Economic Development, reviewed National City's Housing Programs and potential funding sources to address housing needs. Alfredo Ybarra, Acting Deputy City Manager, presented information on Rent Control/Stabilization and related programs in California. Martin Reeder, National City Acting Planning Director, reviewed National City Plans and current projects related to housing issues. TESTIMONY: Fifteen speakers offered testimony both in support and against rent control and offered various suggestions on how to address National City's housing needs and the current housing crisis. Book 100 / Page 54a 03-26-2018 CITY WIDE HOUSING ADMIN (303-4-1) (cont.) 1. Housing Workshop — Presentation — Comprehensive Local Housing Strategy (City Manager) (cont.) ACTION: No vote was taken. Members of the City Council asked questions; expressed various individual concerns and opinions regarding rent control, the housing crisis, the need to be creative in seeking solutions, the importance of having mixed rate housing choices, gentrification and displacement of residents. The consensus was the need to get additional information and come back with some practical incentives and actions that can be taken to address housing issues. Note: All presentations are attached as Exhibit "A". ADJOURNMENT Motion by Sotelo-Solis, seconded by Cano, to adjourn the meeting to the next Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City to be held - Tuesday — April 3, 2018 at 6:00 p.m. at the Council Chambers, National City, California. Carried by unanimous vote. Next Regular City Council Meeting: Tuesday, April 3, 2018, 6:00 p.m., City Council Chambers, Civic Center — National City, California. The meeting closed at 6:55 p.m. The foregoing minutes were approved at the Regular Meeting of October 16, 2018. Special Meeting to Conduct Housing Workshop March 26, 2 ,d, iI8IHX3 SAN DIEGO HOUSING COMMISSION Overview • Comprehensive Local Housing Strategy • SANDAG Refresher on RHNA • National City Housing Element • San Diego Housing Commission — Status Report • National City Housing Programs • Review of Rent Control/Stabilization • National City Plans and Projects — Compliance with State Laws • Next Steps Comprehensive Local Housing Strategy • A Policy Document that Guides Priorities for Housing at a Local Level • Permanent, not Temporary Housing • A "Spectrum" of Issues and Political Positions • Includes all Stakeholders and: Collaborates with other Public Agencies • 2017 State of CA "Housing Package" • National City Housing- Element Proposed Local Housing Objectives • Create Affordability, Diversity, and Equity • Consider Market Conditions and Boost Supply • Become Compliant with State Laws • Protect Renters and Address Gentrification • Be Opportunistic and Compete for Funding Regional Housing Needs Assessment (RHNA) Seth Litchney Senior Regional Planner San Diego Association of Governments (SANDAG) SAINEMIG The RHNA Process RHNA Determination RHNA Plan DRAFT RHNA Determination Department of Housing and Community Development HCD Draft RHNA Determination Calculations (Regionwide) Income Category Percent Housing Unit Need • Very -Low 24.7% 42,332 • Low 15.5% 26,627 • Moderate 17.3% 29,734 • Above -Moderate 42.5% 72,992 • Total 100.0% 171,685 RHNA Determination SANDAG Consultation Review HCD Calculations and Assumptions • Group Quarters Population • Vacancy Rate • Overcrowding • Replacement RHNA Determination SANDAG Consultation • Planning Directors/Regional Planning Committee/Board of Directors • SANDAG Letter to HCD • HCD Prepares Final RHNA Determination RHNA Plan and Allocation • SANDAG and 19 Local Jurisdictions —Methodology to allocate housing units —SANDAG Board Approval • Regional Plan Adoption • City and County Housing Element Update —18 Months After Regional Plan Adoption (SANDAG RHNA Schedule SANDAG Anticipated Date Anticipated Action Spring 201 8 SANDAG \California Department of Housing and Community Development (HCD) on the Regional Housing Needs Assessment (RHNA) Determination Spring 2018 HCD provides RHNA Determination for the San Diego region May 2018 through February 2019 SANDAG develops the RHNA Plan (methodology and allocations) SANDAG prepares Draft RHNA for incorporation into Draft Regional Plan February - April 2019 SANDAG releases Draft RHNA/Draft Regional Plan Plan October 2019 SANDAG adopts Final Regional Plan and RHNA April 2021 Housing elements due by local jurisdictions (18 months after Regional Plan adoption) Regionwide RHNA Determination by Income Category Jan 1, 2010 — Dec 31, 2020 (Projection Period) Income Categories Very Low 22.5% 36,450 Moderate 18.9% 30,610 Above Moderate 41.5% 67,220 Total 161,980 RHNA Allocation 11-Year N 4.999 L V LJ L V L V VL + Low 1,605 ' Estim. Existing Plan Capacity 20+ dulac 1,605 Very Low 912 _L. Low 693 Moderate 1.062 Above Moderate 2,332 Carlsbad Chula Vista 12,861 3,209 2.439 2,257 4,956 5,648 21,899 Coronado 50 13 9 9 19 22 270 Del Mar 61 7 5 15 34 12 12 El Cajon 5.805 1,448 1,101 1,019 2,237 2,549 13,225 Encinitas 2,353 587 446 413 907 1,033 1,293 Escondido 4.175 1,042 791 733 1,609 1,833 2,582 Imperial Beach 254 63 48 45 98 111 1,784 La Mesa 1.722 430 326 302 664 756 6,498 Lemon Grove 309 77 59 54 119 136 828 National City 1,863 465 353 327 718 818 18,200 Oceanside 6.210 1,549 1,178 1,090 2,393 2,727 4,751 Poway 1.253 201 152 282 618 353 353 San Diego 88,096 21,977 16,703 15,462 33.954 38,680 158,273 San Marcos 4.183 1,043 793 734 1,613 1.836 2,931 Santee 3,660 914 694 642 1,410 1,608 1,621 Solana Beach 340 85 65 59 131 150 262 Vista 1,374 :343 260 241 530 603 1,731 Unincorporated 22,412 2,085 1,585 5,864 12,878 3,670 3,670 Region 161.980 36,450 27.700 30.610 67.220 64,150 11-Year RHNA Totals 36,450 22.5% 27,700 17.1% 30.610 18.9% 67.220 41.5°° 64,150 ,., CITY'S RHNA ALLOCATION • RHNA Plan 2010-2020 o Very Low Income (50% AMI) : 465 units o Low Income (80% AMI) : 353 units o Moderate Income (120% AMI) : 327 units o Above Moderate Income >120% AMI) : 718 units o Total : 1,863 units • Series 13 Projections: 33,594 units • Series 14 Projections: 5,404 units weriONALVITY r�cbakoakrlo SANDAG Board Policy No. 33 Five Year Housing Permitting Total 2012-2016 Jurisdiction TOTAL New Units (Deed -Restricted) Acquisition/Rehab (Deed -Restricted) Preserved At -Risk (Deed -restricted) Very Low Low Very Low Low Very Low Low Carlsbad 7 178 0 0 0 0 185 Chula Vista 78 267 32 257 0 0 634 Coronado 0 0 0 0 0 0 0 Del Mar 0 0 0 0 0 0 0 El Cajon 48 8 10 13 0 0 79 Encinitas 25 18 0 0 0 0 43 Escondido 7 39 0 160 0 0 206 Imperial Beach 3 26 0 0 0 0 29 La Mesa 0 0 0 0 0 0 C Lemon Grove 57 24 0 0 0 0 81 National City 98 0 8 3 163 17 289 Oceanside 87 55 0 0 73 165 380 Poway 26 26 26 26 0 0 104 San Diego 1,206 1,798 429 653 40 369 4,495 San Marcos 152 91 0 0 0 0 243 Santee 5 37 0 4 0 0 46 Solana Beach 0 2 0 0 0 0 2 Vista 94 40 40 6 0 0 180 County of San Diego OTAL 0 1,893 0 2,609 0 545 21 1,143 0 ±76 0 ; 551 21 toil SGIP (Capital)-75/300 SGIP (Planning) 50/200 ATGP 50/200 Jurisdiction Points Jurisdiction Points Jurisdiction Points National City 62.50 National City 41.67 National City 41.67 San Diego 59.38 San Diego 39.58 -San Diego. 39.58 San Marcos 56.25 San Marcos 3750 San Marcos 37.50 Escondido 53.13 Escondido 35.42 Escondido - 35.42 Lemon Grove 53.13 - Lemon Grove 35.42 Lemon Grove 35.42 Oceanside 48.44 Oceanside 32.29 Oceanside. 32.29 Chula Vista 46.88 Chula Vista 31.25 Chula Vista, 31.25 El Cajon 46.88 El Cajon 31.25 El Cajon 31.25 Imperial Beach 42.19 Imperial Beach 28.13 Imperial Beach 28.13 La Mesa 42.19 La Mesa 28.13 to Mesa28.13 Santee 40.63 Santee 27.08` Santee 27.08 Coronado 35.94 Coronado 23.96 Coronado 23.96 Encinitas 35.94 Encinitas 23.96 Encinitas 23.96 Solana Beach - 35.94 Solana Beach 23.96 Solana Beach 23.96 Vista 35.94 Vista 23.96 Vista 23.96 Carlsbad 21.88 Carlsbad 14.58 Carlsbad 14.58 Poway 21.88 Poway 14.58 Poway 14.58 County Uninc. 17.19 , County Uninc. 11.46 County Uninc. 11.46 Del Mar - 6.25 Del Mar 4.17 Del Mar 4.17 Questions �►' AL-'irD�Gf mcon.raxuwxEv SAN DIt40 H O U S I N 41 lCOMMISSION National City Housing Element 2013 - 2021 Adopted April 16, 2013 Presented by Ray Pe Principal Planner City of National City State Housing Law • Required Element of General Plan • Comprehensive Housing Strategy • Implement State Housing Law • Facilitate Production of Needed Housing • Maintain and Improve Existing Housing Stock Public Participation • Stakeholder Meetings • Public Workshops, Meetings, and Presentations • Neighborhood Councils • Strategic Planning • Publication, Posting, Media, Email, Webpage • Public Hearings Current Housing Element Goals Goal 1:Maintain and Enhance Quality of Neighborhoods Goal 2:Conserve Affordability of Housing Stock Goal 3:Increase Availability and Affordability of Housing for All Income Groups and Households with Special Needs Goal 4:Provide Sufficient Number and; Range of Housing Types to Meet Needs of All. Economic Segments Goal 5:Promote. Fair Housing Practices and Equal Access Goal 6:Enhance Energy Conservation and Design Contents • Chapter 1 • Chapter 2 • Chapter 3 • Chapter 4 • Chapter 5 • Chapter 6 + =DAUPORI1jart:••a_... iklik` IONAL ITy Introduction Community Profile Constraints Resources Accomplishments Housing Plan Housing Needs Assessment • SANDAG — Regional Housing Needs Assessment • City's Allocated Share of RHNA Very Low Income +465 Low Income +353 Moderate Income +327 Above Moderate Income + 718 Total (2010 to 2020) = 1,863 • Identify Sites to Accommodate Need National City Housing Element Sites Inventory j City Boundary lgfri Sites Sites Inventory • Potential Dwelling Units: 4,359 (Net) • Density @ 30+ du/ac: 4,100 (Net) Household Income (% AMI) RHNA Allocation Constructed 2010-2012 Permitted 2013-2017 Sites Inventory Remaining Need Very Low (0-50%) 465 6 98 4,100 0 Low (>50-80%) 353 23 0 0 Moderate (>80-120%) 327 0 101 259 0 Above Moderate (>120%) 718 20 211 0 Total 1,863 49 410 4,359 0 *- cM4FORH)4 g T1ONALCUT L mrnoe..s.r�o .J Programs Include: • Rental and Owner Rehabilitation • Code Enforcement and Housing Inspection • Monitoring of At -Risk Housing • Rental Assistance (Section 8) • New Construction Assistance • Partners and Organizations Funding • Fair Housing Table 6-2 Summary of Quantified Objectives 2013-2020 Extremely Low Very Low Low Moderate Above Moderate Total New Construction 233 226 330 327 698 1,814 Rehabilitation 120 120 At -Risk Housing Preservation 795 795 Rental Assistance (Section 8) 2,034 2,034 Household Income Limits 2017 Area Median Income (AMI) San Diego County = $79,300 Persons Per Household 120% of AMI Moderate Income 80% of AMI Low Income 50% of AMI Very Low Income 1 66,600 50,950 31,850 2 76,100 58,200 36,400 3 85,650 65,500 40,950 4 95,150 72,750 45,450 5 102,750 78,600 49,100 6 110,350 84,400 52,750 7 118,000 90,250 56,400 8 125,600 96,050 60,000 N NNAL Iry r�CDRtQRAT�O 14% % of Housing Units ��°°a`G`� 4%2'' c '4b 5a a7\ Q° Low & Very Low Income Housing Concentration 2016 4% 2% 2% 2% 2% 1% 1% • g� 0% ��aa p`��° C��°,� J��a cP�o� �a�ao ac`�o �`'�a� �`e�a J�y�a �a�o gar �a+c ��` �o��y ��ac `al yam ��°� `r,5a �y`O S O4 �a `°co QQ``'• \aC 0 Cie ACC. QP� \� 50 Source: SANDAG 2017 Regional Housing Progress Report (Draft) 61% of Households Low & Very Low Income Housing Concentration 2015 55% 55% a\`� 0e'b• Ga, •°o �at�°c Qe�a\ �` 51% 50% 47% 46% 44% 44% 40% 40% 39% 32% 29% 29% 28% 27% 26% 18% a a° -le e �a o e y rea2.c\a,`ya�a°y�`ye4\`aoV°ca`a o p`J o tytiea `'a °°4a a a ac,\c, a (o�y� OcccaJ`a ... cP 5° Source: SANDAG 2017 Regional Housing Progress Report (Draft) Questions (►DaG SAN DIEGO HOUSING COMMISSION SAN DIEGO HOUSING COMMISSION "We're About People" Current San Diego Housing Status Debbie Ruane Executive Vice President & Chief Strategy Officer San Diego Housing Commission Major Programs SDHC performs three major program functions: 1. Provide Federal rental assistance • Close to 6,000 property owners accept Federal rental assistance families • More than 15,000-households receive Federal rental assistance from SDHC • 84,000applicantsare on the waiting list 2. Create and preserve affordable housing • Since 1981, SDHC has directed more than $1 billion in loans and bond financing for real estate development — over 17,000 affordable rental units. • SDHC owns and manages`3,4`40 affordable rental units. • SDHC's First -Time Homebuyer Program has assisted more than 5,500-families 3. Address homelessness • HOUSING.FIRST - SAN DIEGO, SDHC's Homelessness Action Plan, is an effective, diverse funding and housing strategy to create permanent housing opportunities for thousands of homeless San Diegans. Housing affordability is a public policy challenge globally, nationally, statewide in California and locally in the City of SanDiego. The: City of San Diego is oneof the most unaffordable housing markets in the nation. Zillow recently surveyed nearly 300 cities sand found San Diego to be one of the most unaffordable six markets in the United States. Both renting and owning in San Diego are increasingly out of reach for average families. The average home price in San, Diego is $506,000 according to Zillow — affordable only withan income over $80,000 per year. The average two- bedroom rental in San Diego is $1,820 per month,affordable only with an income of $72,800per year. Median incomein the City of San Diego is approximately $72,000. Current Housing Situation • 2016 HousingWage*.;is $28.83 for a two. -bedroom unit in San Diego County, and $22...17 for a one -bedroom unit. • This is more than 3 times the federal minimum wage and $13.41 more than the estimated ~:average wage of $15.42 earned by renters nationwide. • The situation is worse in California where housing supply is constrained and rents are higher. • California=has the; third -highest cost of fair market rates in the nation, behind Hawaii and the District of Columbia. *Estimate of the full time hourly wage that a household must earn to,afford a' decent apartment while spending no more than 30% of their income on housing costs) Source: National Low Income Housing Coalition report— "Out of Reach 2016" SDHC—San Diego Housing Production Objectives: 2018-2028 Housing Affordability • Nearly 50 percent of San Diego households are unable to find rental housing they can afford. • Approximately 60 percent of San Diego households cannot afford median - priced home ownership. • Negative impacts from the low supply of housing: — Quality of life degraded — Environment negatively impacted — Talent available to employers constrained — City revenue lost — Direct construction jobs lost What is Affordable Housing and Income Distribution Remaining 4% Rent and utilities are affordable if they do not Other Expenses exceed 30% 18% of income. Buying a home is Entertainment affordable if the mortgage 4% (30-yr w/10% down) does not exceed 28% of income. Taxes 7% Insurance & Pensions 8% Education 1% Health Care 5% Housing 22% Food 12% Apparel 4% Transportation 17% Comparison of California Rental Housing Costs Housing Cost Measure State of California $1,386 San Diego County $1,390 Los Angeles County $1,424 San Francisco County $z,062 Santa Clara County $1,809 2 BR Rent Income Needed to Afford 2 BR Rent $55,433 s55,6oa $56,960 $82,48o S72,36o Median Renter Income $43,701 $45,207 $40,577 S59,656 s64,327 Affordable Monthly Rent at Mean Renter Wage $1,093 $i,130 $1,014 $1,491 $1,6a8 Affordable Rent at 30% AM! $542 $548 $473 $764 $797 Affordable Rent at Minimum Wage 5468 s468 5468 $468 $468 Gap Between Affordable Monthly Rent at Mean Renter Wage and z BR Rent s293 $264 $410 5571 Slat Source: National Low Income Housing Coalition Current Housing Situation (Continued) • . Rental housing demand - highest level since 1960s. • In the past decade, 9 million renters households added, but only 8.2 million rental housing units to its housing stock. • Vacancy rates are at their lowest levels since 1985. Rents - risen at 3.5% annually, fastest pace in 3 decades. • Homelessness is increasing. A minimum wage worker working full time cannot afford a one - bedroom apartment at fair market rent anywhere in US. • Expanding and preserving the supply of quality, affordable housing is essential. Source: National Low Income Housing Coalition report "Out of Reach 2016" Estimated Housing Need vs. Permits Issued City of San Diego (2010-2020) In the first four years of the projection period (2010 —2013 or about 36% of the time period), San Diego has produced: Above Total for all Very Low Low Moderate Moderate Categories Total Housing Units Permitted 1,950 2,151 1,156 21,029 26,286 RHNA Goal (5th Cycle) 36,450 27,700 30,610 67,220 161,980 Percent of Goal Produced 5% 8% 4% 31% 16% Units Left to Permit 35,414 26,729 30,132 60,062 152,337 Building permit numbers show that the pipeline of new development significantly Zags demand: for housing in the moderate -income and low- income segments. At the current (pace, San Diego will produce only 10%- of needed moderate. -income housing and 18% of needed low-income housing by the end of 2020. SDHC—San Diego Housing Production. Objectives: 2018-2028 Housing Need • Housing production levels have not kept pace with population growth. • Comparison with housing production in peer cities identifies additional housing shortfall in the City of San Diego. . • 17,000 — 24,000 units: Annual production rate: needed by 2028 to adequately meet the newly identified demand for housing in the City of San Diego. • 6,400 Units: Top annual production rate in City of San Diego within the last five years SDHC — Affordable Housing Initiatives "Addressing the Housing Affordability Crisis" November 25, 2015: SDHC study released: "Addressing The Housing Affordability Crisis: An Action Plan For San Diego" Action has occurred on all 11 recommendations in the study. SDHC !AN O•u•o N o U$ t N 4 COM141441ON We 're About Peope Addressing The Housing Affordability Crisis Achon Plan for San Dreg* San Diego Housing Commission "Addressing the Housing Affordability Crisis" 1. Set Annual Housing Production Goals 2. Incentivize more 80/20 developments 3. Defer Development Fees 4. Reduce Parking Requirements 5. Reduce Commercial SpaceRequirements 6. Unlock Land & Increase Ground Leases: 7. Shorten Entitlement Process 8. Approve Community PIansfwith Master:EIRs 9. Support CEQA Reform 10. Align State Oversight 11. Increase State and Federal Resources SDHC — San Diego Housing Production Objectives: 2018-2028 Housing Capacity • The City of San Diego has the space to meet its housing needs within the next 10 years. • Five main sources for potential new units: 1. Rezoning to increase density around transit hubs 2. Redeveloping underutilized parcels of land 3. Adapting disused industrial zones 4. Infilling vacant Tots 5. Utilizing companion units Geo-spatial analysis: Google map that overlays each of five sources on City of San Diego San Diego County Annual Permits Historical Trends 2003 - March 2017 C.txurrt 'i Waspy Rest litoerti Totals R Multi -Family U1%lye-family -girl--giro-ram N -wig Construction Industry Research Board HOUSING PRODUCTION RELATIVE TO DEMAND - 2003-2013 ABOVE MODERATE INCOME MODERATE INCOME LOW INCOME Souree: SANDAG's Regional Housinl Progress Report 2003-2013, 312612015 City of San Diego Estimated Housing Need vs. Permits Issued (2003 to 2010) • Share of New Housing units by Income Category, January 1, 2003 - December 31, 2010 (8 years) Fourth Housing Element Cycle Income Level Total Housing Units Permitted Very Low 4,537 Low 4.72 Moderate 3,652 Above M oderate 67,772 Total for all Categories 80,682 Estimated Need 24,143 '8,348 20,28a 44,530 107,301 Percent of Goal Produced 19 %. 26% 18% 152% 75% Units Left to Permit 19,606 /3,627 16,628 -23,242 26,619 Affordability Crisis SAN DIEGO COUNTY'S INFLATION -ADJUSTED MEDIAN RENT INCREASED 32% WHILE MEDIAN RENTER INCOME DECLINED FROM 2000 TO 2014 40% 35% 30% 25% 20% 15% 10% 5% 0 -5% -10% -15% 1 1 gam MAI $3,965 Increase in Annual Median Rent Change in Rent % Change in Renter Income $765 Decrease in An- nual Median 410 Renter Income -$765 1 1 1 1 I I 1 1 1 I = 1 1 I I 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Total decline in annual purchasing Power: Source: CHPC anatysis of 2000-2014 Census and ACS data. Median renter income and rent from 2001-2O04 and 2015-2016 are estimated trends. Median rent and median renter income are inflation ad/usted to 2014 dollars. 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 - 500,000 0 San Diego County Growth Projections - Population — Jobs — Housing 1,911,404 IINDONONINININI 1,491,189 1970 1980 1990 2000 2010 2020 2030 2040 2050 Source: SANDAG, Series 13 Regional Growth Forecast I / ---"4)+a C11L4M�0iENlA +-_ NA °N INCORPORATED Questions 5 DAG SAN DIEGO HOUSING COMMISSION National City Housing Programs Presented by Carlos Aguirre Acting Director of Housing and Economic Development City of National City National City Housing Programs • New Construction • Acquisition & Rehabilitation of At -Risk Housing Projects • Rental Housing Assistance • Homeownership Programs • Rental Housing Inspection Program • Fair Housing and Tenant/Landlord Education • Programs and Funding Sources to Consider New Construction of Affordable Housing Projects • Use of public or private land to construct new affordable housing. • 9 and 4% tax credits, tax-exempt bonds, grants and various other sources • Morgan Tower (1978) • Kimball Tower (1986) • Paradise Creek Apartments I & II (2016, 2018) • Cost of new affordable housing makes production difficult (400K+ per unit) M*T ON4►t iT c-Z4J Acquisition & Rehabilitation of At Risk Housing Projects • Nonprofit or for profit affordable housing developers purchase privately -owned housing, make needed improvements, and institute long term affordability. • 4% tax credits, tax-exempt bonds, and subordinate financing from the Housing Authority. • Focused on preserving housing that is at risk of losing long term affordability covenants. • Examples: Granger, Park Villas, Copper Hills (Vista del Sol), Summercrest Apartments. N. NAJ Tp Rental Assistance Programs • Section 8 Housing Voucher Program • Serves 1,123 families • $10 million annually program funded by HUD • National City is 2% of the County's population, yet has 4% of rental vouchers in the County • Tenant -Based Rental Assistance (TBRA) Program • South Bay Community Services • Serves victims of domestic violence or homeless • Fund every other year with HOME funds N kvT1Oii ACOR ATE Homeownership Programs • Down payment assistance program — Up to 70K as "silent" second, targets families under 80% AMI — Funded every other year with HOME funds — Springboard CDFI- located at Paradise Creek Apartments at the corner of 22nd and Hoover Avenue — Free credit counseling and homeownership education — Foreclosure prevention counseling also provided • New Construction (MAAC Project, Pacific View Estates, Habitat for Humanity) • Acquisition Rehabilitation (Habitat for Humanity) • PACE Program- Allows for energy efficiency improvements financed thru additional property assessment Rental Housing Inspection Program • Housing Inspector II dedicated to addressing resident complaints • Inspection of rental housing conditions • Enforcement of local and state codes • Housing Issues include: • Unpermitted improvements such as room additions and garage conversions • Overcrowding • Pest Infestations • Other unsafe or unsanitary conditions • Currently funded by CDBG is.14 loon („4,4tArry Homeownership Programs • Down payment assistance program — Up to 70K as "silent" second, targets families under 80% AMI — Funded every other year with HOME funds — Springboard CDFI- located at Paradise Creek Apartments at the corner of 22nd and Hoover. — Provider of free credit counseling and homeownership education — Foreclosure prevention counseling also provided • New Construction (MAAC Project, Pacific View Estates, Habitat for Humanity) • Acquisition Rehabilitation (Habitat for Humanity) • Various PACE Programs- Allows for energy efficiency improvements financed with property assessment taltiONAttiltr Fair Housing Programs • CSA San Diego County — Mediating tenant/landlord issues — Processing housing discrimination complaints — Educating tenants and landlords — Periodic testing of discrimination • Regional Analysis of Impediments to Fair Housing Choice — City participates in a 5 year regional analysis — Tracks progress toward addressing impediments — Annual Fair Housing Conference on April 6 at the San Diego Central Library by the San Diego Regional Alliance for Fair Housing ai?6ALlP0RM1,�'"-�- samNALtillt Potential Funding — SB 2: Entitlement formula from State to address local housing needs — SB 3: 2018 Statewide Bond referendum ($4 billion general obligation bond in November 2019 ballot) — HOME Investment Partnerships Program & CDBG — Program Income • Low & Mod Housing Fund, HOME, & CDBG — Local Housing Trust Fund • Future housing loan revenue can be directed to fund affordable housing — Grants • AHSC from Cap & Trade Program Housing Programs to Consider • Inclusionary Housing Program • Ordinance that requires or incentivizes the creation of affordable housing when new development occurs • Density Bonus Program • Community Land Trust (CLT) • Non-profit retains land in trust causing the improvements to remain affordable in perpetuity. • Habitat and San Diego Community Land Trust will present proposal for up to 6 homeownership units in June targeting families under 80% AMI. Review of Rent Control/Stabilization and Related Programs Presented by Alfredo Ybarra Acting Deputy City Manager City of National City sl! u n I elu aH Jo uoLJipuoJ sWeAoad uoi.Jin3 asneJ ..snrpue IoaluoJ 1ualj 11. siiun ie uai Jo ilige ieA Luau DeIds!G i.ueual sope ua� Rent Controls/Stabilization in CA • About .20 cities (including several of the largest) in CA have some form of rent control/stabilization, most do not • Much interest because of rental housing market in Bay Area and;, increasingly, Southern CA • Numerous ballot measures before voters in November_ 2016 • No two programs are alike • Very controversial; landlords and tenants agree on little Programs Vary Pre and Post 1995 • 1995 State law (Costa -Hawkins Rental Housing Act) strictly controls what cities can do in this area — State statute enacted to manage the power of California Cities to regulate their rental markets. — Prohibits municipal vacancy control. Cities with programs at this time could maintain them but not extend. — Prohibits rent control on: single family homes, condos and any building constructed after February 1, 1995. • Changes resulted in different permutations of rent stabilization approaches There are Three Basic Permutations • Mediation programs non -binding mediation approach to resolve landlord- tenant issues including disputed rent increases • Rent °regulation or stabilization programs, typically developed post 1995 • Rent control programs typically with their roots in pre 1995 programs • These basic types are detailed later in this presentation • Just cause eviction ordinances are often associated with rent intervention efforts • Important to remember that each program is unique Rent Intervention Alternative Programs 1. City of Fremont, Modified Residential Rent Increase Dispute Resolution Ordinance Process 2. Alameda/West Hollywood Style Rent Regulation or Stabilization 3. Berkeley/Santa Monica Style Rent Control 68 Type 1— Fremont, Modified Residential Rent Increase Dispute Resolution Ordinance Characteristics • Ongoing tracking of rental units or rents paid is typically not done. Could require more information, establish / increase threshold • Due process: Mandatory participation through conciliation, mediation and fact finding; mediated agreements are memorialized in writing. Could strengthen participation / due process requirements. • Landlord must be current on all fees and in compliance with city requirements. Could continue peer to peer to peer counseling if possible • Landlord must confirm substantial compliance with habitability of unit. Could strengthen City oversight 00 = on 0 00 0 ��n°$ Units Affected • Buildings with three or more units Funding Mechanism • General Fund • Other City Funds • Administration Fees Associated Cost • $100,000 to $300,000 Expands Tenant Rights? Impacts Vacancy Rates? Increases Affordable Housing? 69 Type 8— Alameda/West Hollywood Style Rent Regulation or Stabilization Characteristics • All eligible rent units are loosely tracked; rent policy body publishes allowable yearly rent increase maximums * Due process: Petition process with hearing examiner providing decisions; mediation may be a preliminary option * Housing quality standards maintained (owner/landlord compliance) • Includes just -cause eviction, anti -harassment, and tenant/landlord problem mediation �► Active public education programs • Voluntary vacancies trigger landlord option to remove unit from rent increases compliance with habitability standards t, Expands Tenant Rights? a au 0 00 O 4� n o Units Affected • Buildings with three to five and more units Funding Mechanism • Administration Fees • General Fund • Other City Funds Associated Cost • Approx. $1.9 million Impacts Vacancy Rates? Increases Affordable Housing? 70 Type C Berkeley/Santa Monica Style Rent Control Characteristics • All eligible rental units are tracked and have an established rent ceiling; landlord must report all changes in tenancy and rent increases • Due process: Petition process with hearing examiner providing decisions; mediation may be a preliminary option for some petitions • Housing quality and housing services (owner/landlord compliance) • Includes just -cause eviction, anti -harassment, and tenant/landlord counseling and mediation • Active public outreach and training programs • Optional program suspension - 5% vacancy rate n as as Da n a a Units Affected • Buildings with five or more units • Single family homes with four or more bedrooms rented separately Funding Mechanism • Administration Fees • General Fund • Other City Funds Associated Cost • $4.0 to 4.5 million Expands Tenant Rights? Impacts Vacancy Rates? Increases Affordable Housing? 71 Comparison of Alternative Program Advantages Type A • Creates a way to address rent increase -related tenant grievances and other grievances • Promotes tenant stability regarding lease terminations • Improves landlord/tenant communication • Reinforces non -retaliation provisions • Some programs include tenant relocation expenses • Relatively low program cost • Stabilizes rent increases • Units comply with code • Expands tenants' rights • Addresses landlord/tenant disputes Type C • Tracks controlled units • Identifies, informs, and engages landlords and tenant • Educates tenants about rights • Provides for reasonable rent increases and stabilizes tenant population • Units comply with code • Accessible and efficient method to address landlord/tenant disputes 7i Comparison of Alternative Program Disadvantages Type A *Will not address concerns regarding affordable housing or financial hardship resulting from higher -than -normal rent increases • Have not identified data showing impact on tenant displacement overall • Affordable housing gap persists for residents at or below Area Median Income (AMI) • Only units built before 1995 can be "cost controlled" • Requires significant staffing and budget costs Type C • Affordable housing gap persists for residents at or below Area Median Income (AMI) • Only units built before 1995 can be "cost controlled" • Highest program costs • Threat of reduction in rental units in the long run through increased condominium conversion 73 Final Thoughts on Rent Control A. B. C. D. E. F. G. • Rent control/stabilization is not common among! California cities 4.4 • Recently several Bay Area cities have discussed stricter programs mei • Some Bay Area cities have implemented stricter programs • There is no typical program; each city has a somewhat different approach • Every municipality has confronted unanticipated II challenges and litigation is common • Costs and benefits are hotly disputed • Resources in time and money are required to set- up and administer any type of program National City Plans and Projects Presented by Martin Reeder Acting Planning Director City of National City Local Plans • General Plan -Housing Element • Downtown Specific Plan • Westside Specific Plan (TOD Overlay) • Parking Management Plan tit 4, aiwa sr 4-6 44444 K•• ettl it 4490%1 ffiltig:14 11.4.1*trit,4444-tti,e No, woos., sorommormatimmENEME11111"------. 1j 1 1 4 it IE 8 1 Local Projects Downtown Specific Plan Area • Courtyards at Kimball —157 units National City Blvd. and E. 12th St. Park Lofts — 201 units National City Blvd. and E. 16th St. • 129 National City Blvd. —11 units • Total — 369 units ecific Plan Area a) CU Transit -Oriented • Tota I — 201 units • Local Projects Entitled • Raintree Courts —10 units 'D' Ave. and E. 30th St. • The Kimball — 60 units 'K' Ave. and E. 8th St. Alinea Townhomes —10 units 'F' Ave. and E. 18th St. • Plaza/Grove/E. 12th —12 units • Palm Plaza — 77 units • 8tn & 'V' Ave. — 80 units • Total — 249 units 9th & 'K' Ave. — 63 units • 8th &'V'Ave. —216 units nth & 'V' Ave. — 80 units • c bz .0 N 0 co V O J • Tota I — 279 units • State Compliance Related Actions Zoning Ordinance Changes • Accessory Dwelling Units — SB 1069: Streamlining — AB 2299: Ministerial approval • Density Bonus Law - §65915: Incentives for affordable• housing • 2017 State Housing Package opportunities Next Steps • Prepare Comprehensive Local Housing Strategy through Housing Element Cycle • Come Into Compliance with State Law • Apply for TOD Overlay and Other Planning Grants • Seek Project Funding • Participate in RHNA • Certify Housing Element Questions Public Comment City Council Comments Reminder: Homeless Outreach Workshop April 17 at 4pm City Council Chambers CA NATIQNi aim I117CORPdRAT�.� �= SAN DIEGO HOUSING COMMISSION