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 Californiahasastatewidehousingaffordability crisis, which also manifestsat the regional and local level. Basedon data recently producedby the Southern California Association of Governmentsand California Housing PartnershipCorporation, 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, Californiais amongthetop 10leastaffordable metropolitan markets in the nation, with 55% of OrangeCounty rentersspendingmore than 30% of income on rent. The most recentRegional Housing NeedsAllocation numbersindicate that 37, 966units are neededto meetcurrenthousingneedsin OrangeCounty, and
WHEREAS, theRegionalHousingNeedsAllocation (RHNA) for theCity of Anaheimfor the period of 2014-2021 indicatesthat the City hasa total housingneedof 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 $52,150for a family of four;
b) 907units forlow-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 housingneedsof very low-income, low-income and moderate -income familiesasprescribedby theRegionalHousingNeedsAllocation (RHNA) for theperiodof 2014- 2021remainto besatisfied. 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 theCity 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 -incomefamiliesbynine units; 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, 501and 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 affordablehousing in Anaheim, units where families pay their own way but rents aregenerally lower than those chargedin privatelyowned rentalhousing; 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 andthe former RedevelopmentAgency' s efforts haveresulted 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 through2014 to2,700. While the increasedproductiongoal wasnot met dueto thelossof Housing Set-asidefunds, an outcomedirectly linked to the elimination of all Redevelopmentagenciesin California, over 1,370 of rentalandhomeownershipunits were completed underthe Strategy; and WHEREAS, the City recognizesthe 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 considerationfor approachesthat may be used to increasethe City' s supply of affordable housing. The options ranged from the adoption of a policy statement declaring affordablehousingasapriority in theCity andencouragingvoluntaryactionsand/or optionswhich wouldincludemandatoryapproachessuchasaninclusionaryhousing ordinance; and WHEREAS, Council MembersKring andBarnesandMayor Pro Tem Moreno volunteered to work with staff to preparean affordable housingpolicy statementfor Council considerationand adoption; and
WHEREAS, the City of Anaheim met and consulted with various stakeholders to solicit input, includingmarket -rateandaffordable housingdevelopers, affordable housingadvocatesother real estate professionals; and
WHEREAS, housingdevelopershavestatedthattheir ability to provide affordablehousing would be positively affectedby potentialincentives, suchas expedited processing, additional flexibility on certain development standards, andpotential 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 statementthat encouragesa dialogue betweenCity staffandall developersof upcomingrentalandfor -salehousingproposedin Anaheim to consideroptions and approachesfor addressingthe City' s affordablehousingneeds, assetforth in the HousingElementof the City' s General Plan, and other documentsthat guidethe City's affordable housing goals.
Thepolicy statementis not anabsoluterequirementto produceaffordablehousingunits; however, it is the expectationof City leadersthat developerswill engageearnestlyand objectively in discussionswith City staff asprojectsarecontemplatedandproposedthatresult in theconsideration of viable optionsfor the creationof affordable housingto the extentfeasible.
By way of examples, this mayincludesettingasideor designatinga certainnumberof affordable housing units within proposedhousingprojects, 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 deemsin furtherance of its affordable needs, goals, and objectives.
The City recognizesthat there can be financial implications associatedwith the delivery of affordablehousing. Assuch, theCity is committedtobeingapartnerin theproductionof affordable housing that is responsive to market conditions through the creation of the Anaheim Affordable HousingAction Plan (AHAP) that would besubjectto thereview andapprovalof theCity Council.
The AHAP is attachedheretoas Exhibit " A" and is incorporatedherein bythis reference. The objectives of the AHAP are as follows:
Regulatory Relief
ContinuetheCity' s commitmentto reducingbureaucracyby providing relief from regulationsthat createbarriers to the developmentof affordable housing. Efforts to reduce regulationscould include:
a) Ensuring that the City' s ordinances and programs are consistent with State laws that facilitatetheproductionof affordablehousing;
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 processesto alleviate challenges and impediments to affordable housingproduction, including broadening exemptionsfor affordablehousingprojectsthat 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 otherwisemakeprovisions forassistingtheCity in addressingits affordablehousingneeds.
August 14, 2018
Middle - Income Housing
Work with stakeholders to develop a middle-income housing program that promotes and incentivizesentry-level rental andfor -saleaffordablehousingfor individuals earningmiddle-class incomes. The vastmajority of newmarket -ratehousing unitsproducedareat pricesat thetop of the market. In addition, stateand federalfunding for the developmentof new housingtypically target very low andlow-income families andindividuals. As a result, thismiddle-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 increasehousing supply and improve affordability.
Affordable Housing Ambassador Program
Develop an affordable housing ambassadorprogram in which where the City would designatea 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 -ratedevelopersto promote affordable housing Usherhousing projectsthrough the entitlement andpermitting process Foster relationships with housing stakeholders
Help educateresidentsontheneed andvalueof well-designedaffordablehousingprojects Develop conceptual site designand massing illustrations on potential development sites and promote them to developers
Createan affordable housing marketing program
Affordable Housing Development Funding
Ensurethat the City remainscompetitiveto receive State andFederalfunding, leverages the Anaheim Housing Authority' s remaining resourcesand assetsto 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)