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Home My WebLink AboutC-1 Staff Report - CC-PC Joint Study Session City's Housing ElementJOINT STUDY SESSION C-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: SERGIO GONZALEZ, CITY MANAGER FROM: MATT MARQUEZ, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR DATE: APRIL 19, 2021 SUBJECT: CITY COUNCIL/PLANNING COMMISION JOINT STUDY SESSION #1 FOR THE CITY’S HOUSING ELEMENT 6TH CYCLE 2021-2029 UPDATE BACKGROUND: Due to the housing crisis, the State of California has put more mandates on cities to approve housing at a faster rate. As a result, a total of thirty-two (32) housing bills have been approved to create more housing in the State of California. This wave of housing bills coincides with the City of Azusa updating the General Plan’s Housing Element for the 6th Cycle (2021-2029). Housing policy in California rests largely upon the effective implementation of local general plans and, in particular, local housing elements. In summary, the Housing-Element process consists of the following: 1.Draft an update to the City’s previous housing element. 2.Submit draft to the California Department of Housing and Community Development (HCD) for review/approval. 3.Revise and adopt (or adopt without changes). 4.Submit adopted housing element to HCD. On September 21, 2020, the City Council authorized the circulation of Request for Proposals (RFP) for the Housing Element Update – 6th Cycle. On November 16, 2020, the City Council approved the Professional Service Agreement with MIG to conduct the Housing Element Update – 6th Cycle. MIG, in conjunction with City Staff, commenced the project kick-off in January 2021. On February 1, 2021, the City Council selected Andrew N. Mendez, Council Member to be on the Housing Element Subcommittee The purpose of this report and its corresponding presentation to Council is to provide an update on the progress of the Housing Element Update project. DIRECTION PROVIDED CITY COUNCIL MEETING 4/19/2021 Housing Element Update – 6th Cycle – 2021-2029 – CC/PC Joint Study Session #1 April 19, 2021 Page 2 of 4 RECOMMENDATION: Staff recommends that the City Council take the following action: 1. Receive a presentation from staff on the progress of the Housing Element Update – 6th Cycle. 2. Provide input/direction on the next steps/discussion or deliberation of topics to consider ANALYSIS: The Regional Housing Needs Assessment (RHNA) is a way that Cities plan for future housing needs. RHNA is mandated by State Housing Law as part of the periodic process of updating local housing elements of the General Plan. The RHNA quantifies the need for housing within each jurisdiction during specified planning periods. SCAG developed and adopted the 6th cycle RHNA allocation plan which will cover the planning period October 2021 through October 2029. Communities use the RHNA in land use planning, prioritizing local resource allocation, and in deciding how to address identified existing and future housing needs resulting from population, employment and household growth. The RHNA does not necessarily encourage or promote growth, but rather allows communities to anticipate growth, so that collectively the region and sub region can grow in ways that enhance quality of life, improve access to jobs, promotes transportation mobility, and addresses social equity and fair share housing needs. Based on correspondence with SCAG, staff estimates Azusa’s RHNA 6th Cycle Allocation to be 2,651 housing units, which is a substantial increase from the RHNA 5th Cycle Allocation of 779 housing units. The table below provides a breakdown of the various housing types and number allocation for each: RHNA 5th Cycle Allocation – October 2013 to October 2021 Number of Very Low Income Number of Low Income Number of Moderate Income Number of Above Moderate Income Total 198 118 127 336 779 Estimate RHNA 6th Cycle Allocation – October 2021 to October 2029 Number of Very Low Income Number of Low Income Number of Moderate Income Number of Above Moderate Income Total 760 368 382 1,141 2,651 In order to assist the City to plan for the new RHNA, a community outreach effort has been implemented as part of the Housing Element Update. The community outreach objectives are centered on three components; Engage, Educate and Inform. Below is a summary of the Community Engagement methods that have already been completed by MIG and City Staff: Public Engagement Tasks 1. Online Housing Survey – March 1st – 31, 2021 2. Community Workshop #1 – Tuesday, March 9, 2021 3. Housing Element Update Advisory Committee Meeting #1 – Wednesday March 10, 2021 4. Azusa City Library Storytime Housing Theme – Thursday, March 18 & 25, 2021 5. Children’s House Drawing Contest – March 18-30, 2021 6. All in For Azusa Coordinating Council – Tuesday, March 23, 2021 Housing Element Update – 6th Cycle – 2021-2029 – CC/PC Joint Study Session #1 April 19, 2021 Page 3 of 4 7. Azusa Chamber of Commerce – Wednesday, March 24, 2021 8. Community Workshop #2 – Tuesday, March 30, 2021 Progress Task Results Online Survey The online survey was available from March 1st – March 31st. In total, the City received 260 survey responses. Every week that the survey was available online, raffle prizes were given out to random respondents with prizes including water coolers, tumblers, and gift cards. Community Workshops & Advisory Committee Meetings The Community Workshops and Advisory Committee meetings were held virtually via Zoom. The Advisory Committee is made up of the following members: • Mercedes Castro, Azusa Planning Commission – Advisory Committee Chairperson • Andrew N. Mendez, Azusa City Council – Advisory Committee Vice-Chairperson • Christell Hutchinson, Azusa Senior Advisory Committee • Steve Castro, Azusa Chamber of Commerce • Latasha Jamal, Azusa Unified School District • Maureen Taylor, Azusa Pacific University After brief presentations from City Staff and MIG, members of the public were allowed to give their input about what topics and issues the Housing Element Update should address. Some of the key themes of the meetings included: • Building/planning for more affordable housing, • Educating tenants and landlords on housing/property rights, • Educating the public about accessory dwelling units (ADUs) and other creative housing opportunities, • Focus more housing toward transit/corridor areas (Transit Oriented Development (TOD)), • Addressing development constraints such as strict parking requirements, • Focus on more high-quality design; implementing Design Guidelines, • Smaller-scale apartment buildings to increase density, • Homeless/Supportive housing, • Safe & Contemporary housing • Senior housing, • Updating infrastructure/capacity, and • Underutilized areas/Redevelopment opportunities, Housing Element Update – 6th Cycle – 2021-2029 – CC/PC Joint Study Session #1 April 19, 2021 Page 4 of 4 Next Steps Some of the key next steps in getting the Housing Element Update can be found below. Again, it is imperative that the Housing Element Update document is completed and submitted by October 31, 2021. The complete Task timeline can be found in Attachment 1 of this Staff Report. • Outreach presentation to Azusa Rotary Club – Tuesday, May 6, 2021 • Housing Educational Campaign – May • Azusa City Library Housing STEM Activity – May • Housing Building Contest – May • Administrative Draft 2021-2029 Housing Element – May • Advisory Committee Meeting #2 – Monday, June 14th or Tuesday, June 15th • CC/PC Joint Study Session #2 – Monday, June 21st • 60-Day HCD Review & CEQA Environmental Analysis – July – August • Final Draft Housing Element – August • Planning Commission Public Hearing – September 15, 2021 • City Council Public Hearing/Adoption – October 4, 2021 • Final Housing Element Submittal to HCD – by October 15, 2021 FISCAL IMPACT: This action will have no fiscal impact. The project was granted the Local Early Action Planning (LEAP) Grant to the City on October 6, 2020 by the California Department of Housing and Community Development in the amount of $150,000.00. Prepared by: Reviewed by: Manuel Muñoz Matt Marquez Planning Manager Economic and Community Development Director Fiscal Reviewed by: Reviewed and Approved by: Talika M. Johnson Sergio Gonzalez Director of Administrative Services City Manager Attachments: 1) City of Azusa 6th Cycle 2021-2029 Housing Element Draft Task Timeline 2) City Council and Planning Commission Housing Element Study Session PowerPoint City of Azusa | 2021-2029 Housing Element Update 1 Azusa Housing Element - Draft Task Timeline MILESTONE TARGET COMPLETION DATE 1.1 Project Kick Off Meeting and Data Needs Request January 7, 2021 1.2 Project Schedule January 21, 2021 1.3 Ongoing Project Management Ongoing 3.1A Public Engagement Plan January 2021 3.1B: Project Icon January 2021 3.1C Community Workshop March 9, 2021 3.1D Survey Feb 27 – March 31 3.1E(1) Subcommittee Meeting #1 March 10, 2021 EXTRA Community Workshop March 30, 2021 3.1F Joint Study Session (PC/CC) #1 April 19, 2021 5.1 Administrative Draft 2021-2029 Housing Element May 5.2 Public Review Draft Housing Element June 3.1E(2) Subcommittee Meeting #2 June 14 or 15, 2021 3.1F(2) Joint Study Session (PC/CC) #2 June 21, 2021 5.4 60-day HCD Review July - August 2021 4.1 Environmental Analysis: Draft IS/(M)ND July 2021 30-day public review August 2021 5.3 Final Draft Housing Element August 2021 3.2A Planning Commission Public Hearing September 15, 2021 3.2B City Council Public Hearing October 4, 2021 6.1 Final Housing Element October 2021 Final Certified Housing Element HCD has 90 days to review Adopted Housing Element Attachment 1 Housing Element City Council & Planning Commission Study Session April 19, 2021 Attachment 2 Agenda •Azusa Housing for All Initiative •Input Received to Date •Housing Element Overview •Update Process and Timeline Engagement Goals •Educate and provide the community an understanding of the Housing Element •Engage community members and gather input on key housing needs and goals •Use input gathered to inform and guide the City’s housing policies WHAT WE’VE HEARD SO FAR… Advisory Committee Meeting #1 March 10, 2021 Community Workshop #1 March 9, 2021 Community Workshop #2 March 30, 2021 Community Housing Survey •260 completed responses •Available in English, Spanish, and Chinese –93.7% English –6.3% Spanish •Weekly give aways to random participants What are your reasons for living in Azusa? 3.2% 3.2% 6.1% 7.9% 8.1% 8.3% 9.7% 15.5% 17.5% 20.4% 0%5%10%15%20%25% Other Schools Transportation options Quality of housing Distance from home to shopping, services Types of housing available Community and recreation amenities Distance from work Cost of housing Close distance to family and friends Housing issues experienced before and after the coronavirus outbreak 1.2% 1.2% 4.7% 8.7% 9.6% 11.1% 11.1% 14.0% 38.5% 1.4% 0.0% 8.5% 8.3% 8.3% 12.9% 11.3% 14.9% 34.4% 0%5%10%15%20%25%30%35%40%45% Housing discrimination Other Significant rent increase Too many people in the house (overcrowding) Struggle to cover routine/emergency home maintenance Struggle to pay rent/mortgage Lack funding for repairs Adult children living at home due to inability to afford housing None of the above Pre Covid After Covid What types of housing does Azusa need most? Housing Needs in Azusa Number of times chosen in top 3 Weighted Score Duplexes or Triplexes (2-or 3-unit buildings)139 1.746 Smaller scale apartments (4 units or fewer)115 1.576 Senior housing 81 1.538 Detached single-family homes 116 1.465 Condominiums/townhomes 64 1.355 Housing for families and individuals who need supportive services like jobs training and social services 51 1.146 Interim/transitional housing for people looking to transition from homelessness 44 1.134 Larger scale apartment buildings (5 units or more)41 1.150 Accessory dwelling units (granny flats or guest houses)41 0.900 Mobile home parks 9 0.732 Mixed-use (commercial and residential) properties 40 0.723 Rank the importance of current housing challenges in Azusa Housing Challenges in Azusa Important Somewhat Important Not Important Weighted Score Ensure that children who grow up in Azusa can afford to live in Azusa on their own 57.9%31.2%10.8%5.93 Encourage the rehabilitation of existing housing in older neighborhoods 56%39.3%4.7%5.88 Support programs to help homeowners at risk of mortgage default to keep their homes, including mortgage loan programs 50.2%43%6.8%5.77 Establish housing for households with special needs such as seniors, large families, veterans, and/or persons with disabilities 44.7%45.5%9.8%5.52 Targeted efforts to address long-term inequities in the housing market, including discrimination in renting 47%35.3%17.7%5.32 Streamline the process for new housing construction 42.1%41.7%16.2%5.15 Focus new housing near commercial areas, creating "live/work" neighborhoods 34.6%46.3%19%4.98 Provide shelters and transitional housing for homeless families and individuals, together along with services that help move people into permanent housing 35.8%42.7%21.6%4.97 To meet the City's long-term housing needs, the City will need to plan for more homes. This includes single-family homes as well as apartments, townhomes, and condominiums. Please rank the ideas below based on what you think are the best general locations in Azusa for new housing. Locations for New Housing in Azusa Number of times chosen in top 3 Weighted Score Along Foothill Boulevard 138 1.420 Along Arrow Highway 122 1.229 Along Azusa Avenue and San Gabriel Avenue 105 1.161 In the Downtown area 72 1.139 Near Azusa Pacific University 54 1.136 In the area immediately surrounding Downtown 78 1.095 In existing multi-family neighborhoods 58 1.047 In hotels or motels that can be converted to housing 68 0.955 On parking lots of churches if those institutions wish to develop housing 34 0.717 Are there other places in Azusa, not mentioned in the previous question, where you would want to prioritize new housing? There are a number of tradeoffs associated with different approaches to providing more housing in Azusa. Please rank the following in order of importance. Housing Tradeoffs Number of times chosen in top 3 Weighted Score New housing should be concentrated near existing and planned public transit.172 1.186 New housing should blend in with the character of surrounding neighborhoods.175 1.155 New housing should be spread evenly across all parts of the city.136 1.037 New housing should be located where it will have the least impact on traffic in Azusa.99 0.816 New housing should be located within easy access to open space/parks 60 0.686 New housing should be located within easy access to health resources, such as clinics and wellness centers 34 0.658 New housing should be located within easy access to shops.41 0.393 Currently, do you: I live in Azusa = 68.8% I live and work in Azusa = 8.5% I work in Azusa = 18.8% I do not live or work in Azusa =3.8% 0.4% 1.2% 1.6% 1.6% 6.4% 10.0% 14.8% 64.0% 0%20%40%60%80% Interim/transitional housing and shelter Do not currently have a permanent home A mobile home Accessory dwelling unit (granny flat/guest house) A duplex/triplex/fourplex An apartment A condominium/townhome A single-family home Which best describes your current housing situation? Which best describes your current housing situation? 0.8% 1.6% 11.0% 27.3% 59.2% 0%20%40%60%80% Do not currently have a permanent home No answer Live with friends/family, do not own or pay rent Rent Own How long have you lived in Azusa? 14.9% 36.9% 16.5% 12.9% 18.9% 0%5%10%15%20%25%30%35%40% I do not live in Azusa 20 or more years 11 to 20 years 6 to 10 years 1 to 5 years How do you identify yourself? 1.2% 1.2% 1.2% 2.3% 5.8% 8.8% 20.4% 59.2% 0%10%20%30%40%50%60%70% Other Native Hawaiian or Pacific Islander Native American Black or African American Prefer not to say Asian or Asian American White non-Hispanic Hispanic/Latino What language is primarily spoken in your household? 3.2% 8.9% 85.1% Mandarin = < 1% Other = 2.4% Prefer not to say = 3.2% Spanish = 8.9% English = 85.1% How old are you? 3.2% 0.4% 13.7% 51.8% 21.7% 9.2% 0%10%20%30%40%50%60% Prefer not to say Under 18 18 to 29 30 to 49 50 to 64 65 and older Additional Engagement HOUSING ELEMENT OVERVIEW What is a Housing Element? •Updated every eight years •Required to be reviewed by California Housing and Community Development Department (HCD) •Adoption deadline: October 2021 Legislative Intent “The availability of housing is of vital statewide importance…[and] local and state governments have a responsibility to…facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community.” What is in a Housing Element? Housing Plan Constraints to Housing Development •Governmental •Market •Environmental •Infrastructure Resources and Sites Inventory •Sites for all Income Levels •Administrative Resources •Financial Resources Previous Accomplishments Progress toward Implementing Previous Housing Element Needs Assessment •Demographic Trends •Housing Market Trends •Special Needs Groups Tenure in Azusa 48%52% Owner Households Renter Households Source: US Census Bureau ACS 2018 5-year Estimates AFFORDABLE HOUSING: WHAT IS IT? What is Affordable Housing? Source: Comprehensive Housing Affordability Strategy, Department of Housing and Development (2013-2017 Estimates) ▪Affordable housing: a household paying no more than 30% of its annual income on housing ▪Cost burden: When monthly housing costs (including utilities) exceed 30% of monthly income 44% of all Azusa households experience housing cost burden 68% of lower-income households experience housing cost burden State Income Thresholds for Los Angeles County Income Level 1-Person 2-Person 3-Person 4-Person 5 Person Extremely Low (0-30% AMI)$23,700 $27,050 $30,450 $33,800 $36,550 Very Low (31-50% AMI)$39,450 $45,050 $50,700 $56,300 $60,850 Low (51-80% AMI)$63,100 $72,100 $81,100 $90,100 $97,350 Moderate (81-120% AMI)$64,900 $74,200 $83,500 $92,750 $100,150 Area Median Income $54,100 $61,850 $69,550 $77,300 $83,500 AMI = Area Median Income Los Angeles County AMI = $77,300 (family of 4) Affordable housing = 30% of household income Example: $90,100 x 30% = $27,030/12 months -> $2,252 per month Affordable Housing Cost by Job $2,280 (mortgage in Azusa for median home) $1,770 (median rent in Azusa for two-bedroom home or apartment) $600 $600 $685 $1,288 $1,475 $2,035 $2,288 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 FAST FOOD COOK CHILD CARE WORKER LANDSCAPING WORKER ELEMENTARY SCHOOL TEACHER FIREFIGHTER REGISTERED NURSE COMPUTER ENGINEER $91,500 $81,400 $59,000 $51,500 $27,400 $24,000 $24,000Annual Income $2,040 (Azusa Monthly mortgage payment) $1,950 (Azusa 2-bed median rent) *For a median priced home; Source: Core Logic; Zumper rent trend data WHAT IS THE RHNA? What is the RHNA? RHNA for SCAG region: 1,341,827 housing units RHNA for Azusa: 2,651 housing units HCD determines RHNAs for each Council of Governments Regional Housing Needs Allocation: 2,651 Source: SCAG, 2020 Estimated RHNA by Income Group Income Group % of AMI Annual Income Range* Azusa 2021-2029 RHNA % Of Units Very Low <50%$0 -$38,650 760 29% Low 50-80%$38,651 -$61,840 368 14% Moderate 80-120%$61,841 -$92,760 382 14% Above Moderate 120% +$92,760 +1,141 43% Total 2,651 (Not a construction obligation to build the required residential units) Goals for accommodating new housing need through comprehensive land use policies and planning (zoning) *A range of household incomes that represents a percentage of the area median family income (MFI). The 2020 MFI for a family of four in Los Angeles County is $77,300. Source: SCAG, 2020; CA HCD 2020 Income Limits Jurisdiction Population Housing Units Units for 2021 –2029 RHNA Azusa 49,658 14,651 2,651 Baldwin Park 76,252 18,048 2,001 Covina 48,846 16,820 1,910 Duarte 21,673 7,360 888 Glendora 52,067 18,488 2,276 Monrovia 37,935 15,084 1,670 West Covina 105,999 32,919 5,346 Los Angeles County 10,172,951 3,590,574 812,060 Source: CA Department of Finance E-5 Table, 2020; SCAG, 2020 RHNA Allocations Meeting the RHNA ▪Approved housing and mixed-use projects ▪Projects in the application pipeline ▪Potential sites –Vacant sites –Underutilized sites that could redevelop –Accessory dwelling units (“granny flats”) How Do We Assign Affordability? Density = Affordability Higher Income Moderate Income Lower Income Large Single-Family Accessory DwellingSmall Single-Family Duplex/Triplex Multifamily Housing What Does Density Look Like? 30 units per acre 45 units per acre 55 units per acre Affirmatively Furthering Fair Housing (AFFH) Meaningful actions to combat discrimination, overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity. WHAT’S NEXT Workshops, Subcommittee Meeting and Survey Identify Housing Sites and Develop Policies Draft Element Advisory Committee and PC/CC Review State HCD Review Environmental Analysis Adoption Housing Element -Timeline Winter 2021 Spring 2021 Summer 2021 Fall 2021 Spring 2021 Public Input Summer 2021 QUESTIONS AND COMMENTS Housing Element City Council & Planning Commission Study Session April 19, 2021