200 S. Anaheim Blvd.
Suite 162
Anaheim, CA 92805
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www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
PLANNING AND BUILDING DEPARTMENT
DATE: MARCH 26, 2024
FROM: PLANNING AND BUILDING DEPARTMENT
HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: ANNUAL HOUSING ELEMENT PROGRESS REPORT FOR
THE 2023 REPORTING PERIOD
ATTACHMENT (Y/N): YES ITEM # 06
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, review the 2023 Annual Housing Element Progress Report (Annual Report) and, by Motion, direct the Planning and Building Director to submit the report to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (OPR).
DISCUSSION:
The Housing Element is one of the required chapters of the city’s General Plan and addresses present and future housing opportunities for Anaheim residents. State law requires local jurisdictions to update the Housing Element every eight years and to file the Annual Report to HCD and OPR by April 1 of each year. State law also requires the City Council to consider these Annual Reports during a public meeting so that members of the public may provide oral testimony or written comments.
This is the second reporting year for the sixth cycle Housing Element which began October 15, 2021 and continues until 2029. The Annual Report, which is prepared on forms provided by HCD, identifies the city’s Regional Housing Needs Assessment (RHNA) allocation and self-stated housing production goals (referred to as the “Quantified Objective”). Although the city’s sixth cycle Housing Element is still in draft form, this annual report is based on the draft policies. The completed Annual Report (Attachment 1), describes the following:
Progress made towards meeting the housing goals, qualified by the total number of permits issued for new housing units during the reporting year, and the total number of housing units entitled and completed (HCD Table A, A2, and B); and Status of other action items outlined in the Housing Element’s Implementation Program (HCD Table D).
Annual Housing Element Progress Report for the 2023 Reporting Period March 26, 2024
In addition, HCD requires jurisdictions to provide the following information, as applicable:
A list of sites that the city has identified or rezoned to accommodate any shortfalls from the projected unit yields of the current Housing Element cycle, as required by the “No Net Loss” State law (HCD Table C; N/A for 2023);
A report on development bonuses granted for commercial development in exchange for providing housing, as permitted by the State law (HCD Table E; N/A for 2023); A report on units rehabilitated, preserved and acquired for alternative adequate sites, pursuant to State law (HCD Table F; N/A for 2023);
A report on above moderate units converted to moderate income, pursuant to State law (HCD Table F2; N/A for 2023);
A report on any sales, leasing, or disposition of sites owned by the city that were included in the Housing Element Sites Inventory (HCD Table G);
An inventory of locally owned or controlled lands declared as surplus lands or identified as excess lands (HCD Table H);
A report on units constructed and applications for lot splits, pursuant to SB9 (HCD Table I; N/A for 2023);
A report on student housing development for lower income students for which a density bonus was granted, pursuant to State law (HCD Table J; N/A for 2023); A report on the local government’s tenant preference ordinance (HCD Table K); and A report on Local Early Action Planning Grant progress (HCD LEAP Reporting).
RHNA and Quantified Objective
The city’s RHNA allocation represents the number of housing units that the Southern California Association of Governments (SCAG) estimates will be necessary to accommodate the city’s projected population growth for the 2021-2029 planning period. SCAG allocated an RHNA obligation of 17,453 residential units to Anaheim during the 2021-2029 planning cycle, divided into four income categories as indicated in Table 1 below:
Annual Housing Element Progress Report for the 2023 Reporting Period March 26, 2024
Table 1: 2021-2029 RHNA by Income Categories
Income Category Income Range for a Household of
Four** 2021-2029 RHNA
Very Low-Income
(< 50% of AMI*) < $71,750 3,767
Low-Income
(51% to 80% of AMI) $71,751– $114,800 2,397
Moderate-Income
(81% to 120% of AMI) $114,801– $153,350 2,945
Above Moderate-Income
(>120% of AMI) > $153,350 8,344
Total RHNA Allocation 17,453 units
*Orange County’s 2023 Area Median Income (AMI) for a family of four is $127,800. **Updated to reflect 2023 income ranges based on The Department of Housing and Urban Development (HUD) data.
In addition to reporting progress made towards meeting Anaheim’s RHNA allocation, this report illustrates the city’s progress towards achieving its Quantified Objective, an important component of the Housing Element. The Quantified Objective represents what the city has determined to be a reasonable number of building permits that the city can anticipate it will issue for housing units during the planning period, when taking into consideration factors such as available funding, infrastructure, and current market conditions. HCD reviews the city’s Quantified Objective as part of its Housing Element certification process.
For the 2023 reporting year (January 1, 2023 through December 31, 2023), the city issued 965 building permits for new housing units. Table 2 below provides a breakdown by unit type.
Table 2: Building Permits Issued - By Type
Single-
Family
Single-
Family
Attached
Multi-
Family
Accessory
Dwelling
Unit
Total
Permitted
Units
Total 3 313 406 243 965
Percent of Total 0.3% 32% 42% 25% 100%
Projects for which building permits were issued in 2023 included:
La Palma Townhomes/La Palma Village (DEV2014-00095 / DEV2018-00142) – A project of 162 attached single-family residences with ground floor commercial space at the northeast corner of Anaheim Boulevard and La Palma Avenue. In 2023, permits for all residential units were issued.
Link OC (DEV2017-00031) – A mixed-use project consisting of 406 apartments in two residential buildings and 5,000 square feet of new commercial space. In 2023, permits for all Annual Housing Element Progress Report for the 2023 Reporting Period March 26, 2024
residential units were issued.
Lincoln at Euclid (DEV2019-00037) – A project of 115 single-family attached units located on the north side of Lincoln Avenue, east of Euclid Street. In 2023, permits were issued for 89 residential units.
Townes at Broadway (DEV2020-00180) – A project of 112 single-family attached units located on the north side of Broadway, west of Brookhurst Street. In 2023, permits were issued for 55 residential units.
Table 3 below provides the RHNA income categories, respective RHNA allocation, permits issued, and remaining RHNA allocation, along with city’s Quantified Objectives by income category and the progress made towards meeting these objectives. Accessory Dwelling Units (ADUs) were assigned an income category consistent with the methodology utilized in the Housing Element.
Table 3: Building Permits Issued
Income
Category
RHNA
Allocation
for 8-Year
Planning
Period
Quantified
Objective for 8-
Year Planning
Period
Permits
Issued 2023
(Current
Reporting
Year)
Total
Permits
Issued in
6th Cycle
Remaining
RHNA
Allocation
Remaining
Quantified
Objective
Very Low-
Income 3,767 754 62 259 3,508 495
Low-Income 2,397 168 43 115 2,282 53
Moderate-
Income 2,945 8 73 124 2,821 -116
Above
Moderate-
Income
8,344 7,000 787 993 7,351 6,007
TOTAL 17,453 7,930 965 1,491 15,962 6,439
* Building permits issued from October 15 through December 31, 2021 were reported in the 2021 Annual Progress Report, but are applied to the 6th Cycle.
Housing Policy Program
In addition to housing production targets, the Housing Element includes a Housing Policy Program (HPP) that identifies a variety of policy actions necessary to ensure that the city meets its present and future housing needs. Certain policy actions are ongoing while others are scheduled to begin at varying intervals following Housing Element certification. The Annual Report illustrates the city’s progress towards achieving various policies and programs. The following list highlights key housing accomplishments achieved in 2023:
Annual Housing Element Progress Report for the 2023 Reporting Period March 26, 2024
The Anaheim Housing Authority (Housing Authority) worked with the developer of Finamore Place Apartments to develop 102 workforce rental housing units which are 100% affordable. The project, located at 915 E. Orangewood Avenue, was completed in February 2023. Twenty (20) of the units in the project were made available to homeless families. The Housing Authority assisted in the development of the Center of Hope, which is a project of 72 apartment units for permanent supportive rental housing at the existing Salvation Army facility located on Lewis Street, south of Ball Road. The Center of Hope provides long-term housing solutions for individuals exiting chronically homeless conditions and is 100% affordable with rents affordable to persons with incomes that fall within the extremely low- income category. The project includes 70 studio units, all of which were set aside for homeless individuals, with 50% being set aside for homeless individuals with disabilities, plus one, one-bedroom and one, two-bedroom Manager’s unit. A 325-bed low barrier shelter is also included in the project, which serves as the entry point to exit homelessness and provides a wide array of on-site supportive services. Construction was completed in September 2023.
The Housing Authority is working with a developer on a 3.62-acre property located at the southeast corner of Beach Boulevard and Lincoln Avenue to develop a 47-unit senior housing project consisting of 46 extremely low-income units. 20% of the units will be set aside for persons exiting foster care. The project will also include homeownership and commercial components. The homeownership component will include 60 units, 15% of which will be made available to moderate income buyers. The commercial component will provide culinary entrepreneurial opportunities for aspiring entrepreneurs who lack significant capital to open a physical storefront. The Housing Authority will be applying for Tax Credits in July 2024 to provide partial funding for the project. The Housing Authority is working with a developer on a motel conversion located at 120 S.
State College Boulevard to develop a 32-unit rental housing community for persons exiting foster care, including one manager’s unit. The single parcel site is comprised of two separate buildings and will be developed under the city’s Residential Use of Motels, Commercial and Office Building Ordinance. It will consist of 31 extremely low-income units. The Housing Authority is in the process of converting Studio 6 Motel, a phased project previously operated as interim housing, into permanent supportive housing. The project was awarded tax credits in July 2023 and commenced construction in February 2024. It will consist of 87 extremely low-income units and two manager’s units. The project is anticipated to be completed in July 2025.
The Housing Authority is working with the developer of Miraflores Apartments, which is a project of 86 multi-family units for workforce rental housing, located at the southwest corner of Midway Drive and Anaheim Boulevard. The project includes 28 extremely low, 39 very low, and 18 low-income units, along with one manager’s unit, expected to be completed in June 2024. Eight of the units in the project will be made available to homeless families.
Annual Housing Element Progress Report for the 2023 Reporting Period March 26, 2024
The Housing Authority continues to work with developers to encourage the creation of extremely low-income units. The use of the Low Moderate-Income Housing Asset Fund (LMIHAF) requires that 30% of the available funds be utilized for the creation of extremely low-income units.
The Housing and Community Development Department currently implements a residential rehabilitation loan program for income-qualified single-family detached, attached, and mobile home households to assist with home improvements. The program is administered by Habitat for Humanity, an affordable housing non-profit organization, in partnership with the city. In 2023, four homes, including three mobile homes, were rehabilitated. The Housing and Community Development Department anticipates rehabilitating five homes in 2024. The Housing and Community Development Department continues to administer its Down Payment Assistance Program for low- and moderate-income homebuyers. The Department committed Down Payment Assistance for the 100 West Townhomes located at 100-394 West Cerritos Avenue for 29 of the 292 units. To date, 19 units have been sold to moderate-income buyers who live or work in Anaheim.
The Housing Authority administers four federal voucher programs annually based on HUD funding availability. In 2023,
Section 8 Housing Choice Vouchers – 5,812 leased;
Section 8 Mainstream Housing Program Vouchers – 319 leased; Section 8 Homeless Preference – 117 leased; and
Project Based Voucher Program – 717 leased with 8 committed. The Housing Authority administers federal Emergency Solution Grant (ESG) funds to assist people who are homeless or those who are at-risk of becoming homeless. In 2023, $266,860 in ESG program funds were distributed to local non-profits to support street outreach, homeless prevention, rapid rehousing and emergency shelter activities with 299 homeless persons assisted.
The Code Enforcement Division implements the city’s Quality Rental Housing Program (QRHP) to proactively identify substandard conditions on residential and motel properties throughout the city. The QRHP includes over 4,064 rental properties comprising of 50,397 rental units. This represents approximately 87% of all rental units in the city. In addition, the DRHP includes the inspection of 32 motels.
The Planning Services Division, as part of the Code Streamlining and Improvement Program, annually evaluates existing requirements and permitting processes to identify potential changes to increase efficiency, improve service delivery, and respond to changing regulatory and market demands. The 2023 Code Streamlining Zoning Code Amendment included modifications to the multiple-family zone development standards and review processes, the allowance of caretaker units on commercial properties, removed the condition that the conversion of motels, commercial, and office structures into residential units be allowed for only a defined period of time and provided consistency with ADU and Density Bonus and Annual Housing Element Progress Report for the 2023 Reporting Period March 26, 2024
Other Incentives state law. These zoning code amendments were adopted by the City Council on April 4, 2023.
Status of Housing Element Update Project
The city first released the Draft 2021-2029 Housing Element for a 30-day public review period that began on August 26, 2021. Staff made minor revisions and submitted the Draft 2021-2029 Housing Element to HCD for review on October 15, 2021. Subsequently, the city has submitted formally twice to HCD, in June 24, 2022 and May 2023, and informally in September 2023.
Staff continues to address HCD’s comments, seek Technical Assistance from HCD staff, and is currently working towards an near-term 2024 formal submittal. The city continues to diligently work towards a Finding of Compliance. Each formal submittal and corresponding comment letter from HCD is published on the city’s website: https://www.anaheim.net/5998/2021-2029- Draft-Housing-Element.
Other Related Projects
In order to obtain certification of the 2021-2029 Housing Element, amendments to the General Plan Land Use Element, the Zoning Code, and the Zoning Map are necessary to reflect potential housing sites and implement Housing Policy Programs. While the Housing Element is a policy document that in and of itself would not create a new physical impact on the environment, these changes to the land uses have potential to create an impact on the environment. Therefore, city staff is in the process of preparing a Program Environmental Impact Report (PEIR) to analyze these changes. In addition, city staff is currently preparing an amendment to the Circulation Element of the General Plan and creating a new Environmental Justice Element, pursuant to State law.
To date, the city issued a Notice of Preparation on February 16, 2022 and held an online public scoping meeting on March 2, 2022 to solicit comments and suggestions regarding the scope and contents of the PEIR to be prepared. Staff is currently working with the city’s consultant to complete the technical analysis required for the preparation of the draft PEIR. Staff anticipates that the draft PEIR will be available for public review in summer 2024.
IMPACT ON BUDGET:
Funding for the preparation of the Housing Element Annual Progress Report and associated activities is included in the Planning and Building Department’s FY 2023/24 General Fund Budget and the Housing and Community Development Department’s FY 2023/24 Low- and Moderate-Income Housing Asset Fund Budgets.
Annual Housing Element Progress Report for the 2023 Reporting Period March 26, 2024
Respectfully submitted, Concurred by,
Ted White Grace Ruiz-Stepter
Deputy City Manager/ Housing and Community Development Director Planning and Building Director
Attachment:
1. Housing Element Annual Progress Report Form