Resolution No. 2018- 10 6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM ADOPTING AN AFFORDABLE HOUSING
POLICY AFFIRMING THAT AFFORDABLE HOUSING IS A
PRIORITY IN THE CITY OF ANAHEIM
WHEREAS, the Stateof California hasa statewidehousing affordability crisis, which also manifestsat the regional and local level. Basedon data recently producedby the Southern California Association of Governments and California Housing Partnership Corporation, from 2000 to 2015, median rents in California have increased 25%, while median household income has declined 4%. Statewide, more than 60% of very low- income families spend upwards of 50% of householdincome on housing; and
WHEREAS, OrangeCounty, California is among the top 10least affordable metropolitan markets in the nation, with 55% of Orange County renters spending more than 30% of income on rent. The most recent Regional Housing NeedsAllocation numbers indicate that 37,966 units are neededto meet current housing needsin Orange County, and WHEREAS, theRegionalHousingNeedsAllocation (RHNA) for theCity of Anaheimfor the period of 2014-2021 indicates that the City has a total housing need of 5,702 units. From this allocation, the RHNA designates:
a) 1,256 units for very low- income families, with incomes at or below 50% of Average Median Income (AMI), or $52,150 for a family of four;
b) 907units for low-incomefamilieswith anAMI rangingfrom 51% to 80%, not to exceed $ 83, 450;
c)
1,038unitsformoderate -incomefamilieswith anAMI rangingfrom 81% to 120%, not to exceed $ 105, 600; and
d) 2,501 units for above moderate -income families with an AMI above 120% WHEREAS, the housing needs of very low- income, low- income and moderate -income familiesasprescribedby theRegionalHousingNeedsAllocation (RHNA) for theperiodof 2014- 2021remainto be satisfied. A totalof 1,175unitsremainto bebuilt for verylow-incomefamilies, 796 units for low- income families and 993 units for moderate income families; and WHEREAS, while the City has made substantial progress in certain income categories, thehousingneedsof verylow-incomeandlow-incomefamiliesasprescribedby the City of Anaheim' s Quantified Objective ( QO) for the period of 2014- 2021 remain to be satisfied. The QO hasthefollowing outstandinggoals: 2 units for very low-incomefamiliesand256units for low- incomefamilies. TheCityhasexceededtheQOformoderate -incomefamiliesbynineunits; and August 14, 2018
WHEREAS, the City has exceeded its goals for above moderate -income families, as prescribed by the Regional Housing Needs Allocation ( RHNA) and QO, for the 2014- 2021 reporting period. A total of 5,240building permits havebeenissuedfor new residential construction since 2014, exceeding the RHNA and QO minimum requirements of 2,501 and 3,872 units, respectively; and
WHEREAS, demand for affordable housing in Anaheim continues to be significant. There are currently over 25, 000 families on the waiting list for the Housing Choice Voucher ( HCV) program, a rental subsidy program, and 20, 000 families on the interest list for referrals for affordable housing in Anaheim, units where families pay their own way but rents are generally lower than those chargedin privately owned rental housing; and WHEREAS, the City and the former Redevelopment Agency, through a variety of programs and incentives, hasprovided a broad spectrum of housing options for personswho live and/or work in Anaheim. The City and the former Redevelopment Agency' s efforts have resulted in the creation of over 6,784 units since 1978, including 4,894 affordable units, to house its residents; and
WHEREAS, in 2005, the City Council adopted the Affordable Housing Strategic Plan ( the Strategy"), which set a goal of constructing 1,200 affordable housing units for very low to moderate -income households. The City met this goal and subsequently adjusted the goal in 2009 through 2014 to 2,700. While the increasedproduction goal was not met due to the loss of Housing Set-aside funds, an outcome directly linked to the elimination of all Redevelopment agenciesin California, over 1,370 of rental andhomeownership units were completed under the Strategy; and WHEREAS, the City recognizes the importance of continuing to proactively develop affordablehousingin Anaheimto meettheneedof familieswho live andwork in theCity, and WHEREAS, at the City Council meeting of October 24, 2017, staff presented options for the Council' s consideration for approachesthat may be used to increase the City' s supply of affordable housing. The options ranged from the adoption of a policy statement declaring affordable housing as apriority in the City andencouragingvoluntary actions and/or options which would include mandatory approachessuchasan inclusionary housing ordinance; and WHEREAS, Council Members Kring andBarnesand Mayor Pro Tem Moreno volunteered to work with staff to preparean affordable housing policy statementfor Council consideration and adoption; and
WHEREAS, the City of Anaheim met and consulted with various stakeholders to solicit input, including market -rate andaffordable housing developers, affordable housing advocatesother real estate professionals; and
WHEREAS, housing developershave statedthat their ability to provide affordable housing would be positively affectedby potential incentives, such as expeditedprocessing, additional flexibility on certain development standards, and potential fee deferrals and/or waivers, to facilitate affordable units and mitigate the costs of doing so.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES HEREBY RESOLVE AS FOLLOWS:
August 14, 2018
Section 1. The City Council, by this resolution, affirms that affordable housing is a priority in the City of Anaheim and is adopting a policy statement that encouragesa dialogue betweenCity staffandall developersof upcomingrentalandfor -salehousingproposedin Anaheim to consider options and approachesfor addressingthe City' s affordable housing needs, as set forth in the HousingElementof the City' s GeneralPlan, and other documentsthat guidethe City's affordable housing goals.
The policy statementis not an absoluterequirement to produce affordable housing units; however, it is the expectationof City leadersthat developerswill engageearnestlyand objectively in discussionswith City staff asprojects arecontemplatedandproposedthat result in the consideration of viable options for the creation of affordable housing to the extent feasible.
By way of examples, this may include setting asideor designating a certain number of affordable housing units within proposed housing projects, offering buyer or rental incentive or assistance programs; down payment assistance programs to assist income - qualified first- time homebuyers; partnering with and assisting a non- profit organization( s) pursuing affordable housing projects in the City, including the provision of " in-kind" services; and/or other options that City deems in furtherance of its affordable needs, goals, and objectives.
The City recognizes that there can be financial implications associated with the delivery of affordablehousing. As such, the City is committed to being apartner in theproduction of affordable housing that is responsive to market conditions through the creation of the Anaheim Affordable Housing Action Plan (AHAP) that would be subjectto the review and approval of the City Council.
The AHAP is attached hereto as Exhibit " A" and is incorporated herein by this reference. The objectives of the AHAP are as follows:
Regulatory Relief
Continue the City' s commitment to reducing bureaucracyby providing relief from regulations that create barriers to the development of affordable housing. Efforts to reduce regulations could include:
a) Ensuring that the City' s ordinances and programs are consistent with State laws that facilitate the production of affordable housing;
b) Allowing for the developmentof all housingproduct -types, including creativehousing solutions for all income levels; and
c) Encourage the State to further streamline the requirements of the California Environmental Quality Act ( CEQA) and its processes to alleviate challenges and impediments to affordable housing production, including broadening exemptions for affordable housing projects that meet certain criteria.
Process Incentives
Work with stakeholders to develop an affordable housing incentive program that reduces costs and/or development time during the permitting process. Such incentives could include deferinent and/ or waiver of certain development impact fees for developers who provide affordable units or otherwisemakeprovisionsfor assistingtheCity in addressingits affordablehousingneeds.
August 14, 2018
Middle - Income Housing
Work with stakeholders to develop a middle-income housing program that promotes and incentivizes entry-level rental and for -saleaffordable housing for individuals earning middle- class incomes. The vast majority of new market -ratehousing units produced are at prices at the top of the market. In addition, state and federal funding for the development of new housing typically target very low and low- income families and individuals. As a result, this middle- income group, which includes professionals such as schoolteachers, healthcare workers, public safety personnel, engineers, etc., is quickly losing the ability to afford housing. The program would not competewith other housing tools that target very low and low- income individuals, but rather create another available option to increase housing supply and improve affordability.
Affordable Housing Ambassador Program
Develop an affordable housing ambassadorprogram in which where the City would designate a staff person(s) to promote and facilitate the development of affordable housing in Anaheim. The program could include the following:
First point of contacton any affordable housing projects Meet with market -rate developersto promote affordable housing Usher housing projects through the entitlement andpermitting process Foster relationships with housing stakeholders
Help educateresidentsontheneedandvalueof well-designedaffordablehousingprojects Develop conceptual site design and massing illustrations on potential development sites and promote them to developers
Create an affordable housing marketing program
Affordable Housing Development Funding
Ensurethat the City remainscompetitiveto receive Stateand Federalfunding, leveragesthe Anaheim Housing Authority' s remaining resources and assets to maximize the production of affordablehousing, andencouragesthe Stateto adoptandpursuefunding sourcesfor affordable housing that can replace thoselost through the elimination of redevelopment agencies.
August 14, 2018
THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ANAHEIM THIS 14 ( 4") DAY OF August , 2018, BY THE FOLLOWING ROLL CALL VOTE:
AYES: Mayor Tait and Council Members Moreno, Murray, Vanderbilt, Barnes, Kring, and Faessel
NOES: None
ABSTAIN: None
ABSENT: None
CITY OF ANAHEIM
By:
Mayor
City—Clerk of the City of
Anaheim
August 14, 2018
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CLERK' S CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LINDA ANDAL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the original Resolution No. 2018- 106 adopted at a regular meeting provided by law, of the Anaheim City Council held on the
14th
day of August 2018 by the following vote of the members thereof:
AYES: Mayor Tait and Council Members Moreno, Vanderbilt, Murray, Barnes, Kring, and Faessel
NOES: None
ABSTAIN: None
ABSENT: None
IN WITNESS WHEREOF, I have hereunto set my hand this
15th
day of August, 2018.
CLERK O THE CITY OF ANAHEIM
SEAL)