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March 28, 2023
ITEM TITLE
Housing Report: Accept the Housing Element 2022 Annual Progress Report and Housing Successor Annual Report for Fiscal Year 2021/22
Report Number: 23-0040
Location: No specific geographic location
Department: Housing and Homeless Services
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required
Recommended Action
Accept the Housing Element 2022 Annual Progress Report and the Housing Successor Annual Report for Fiscal Year 2021/22.
SUMMARY
Annually, the City of Chula Vista prepares a Housing Element Progress Report ( the “HE Report”) on the implementation of the City’s Housing Element, which also includes the Successor Housing Agency Report required by Senate Bill 341 (“SB-341”) (the “SB-341 Report”) under Health and Safety Code (“HSC”) Section 34176.1(f). The HE Report provides detailed information regarding the housing activities of the City of Chula Vista from January 1, 202 2 to December 31, 202 2. The SB -341 Report includes housing and financial activities of the Housing Authority’s Low - and Moderate-Income Housing Fund (“LMIHAF “) of the former Redevelopment Agency. The respective reports must be submitted to the State of California Department of Housing and Community Development (“HCD”) by April 1 of each year.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (“CEQA”) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guideline s, the activity is not subject to CEQA. Thus, no environmental review is required.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
The Housing Advisory Commission was provided with a summary of the HE Report at their March 16, 2023 meeting.
DISCUSSION
Housing Element Progress Report
Adopted on July 13, 2021 and amended on September 13, 2022, the City of Chula Vista’s 2021-2029 Housing Element addresses the housing needs and opportunities for present and future Chula Vista residents. Each year, the City must submit to HCD a summary of its progress in implementing the policy and action programs outlined within the Housing Element based on the specified goals and objectives. The 2022 HE Report , included as Attachment 1 (Executive Summary) and Attachment 2 (Required Housing Element Reporting Forms), provides detailed information regarding housing activities of the City of Chula Vista from January 1, 2022 through December 31, 2022.
California Government Code Section 65400 requires the HE Report to include the following: (1) progress in meeting the Regional Housing Needs; (2) the effectiveness of the Housing Element in the attainment of the community’s housing goals and objectives; and (3) progress toward mitigating governmental constraints identified in the Housing Element.
In 2022, building permits were issued for 1,175 new residential units, including building permits issued for 371 deed restricted lower income housing units (accounting for nearly one-third of units produced), and 140 accessory dwelling unit (“ADU”) building permits as detailed in Table 1 (Table B of Attachment 2).
Table 1
Regional Housing Needs Allocation Progress - Permitted Units Issued by Affordability Income Level
RHNA
Allocation
by Income
Level
Projection
Period
6/30/2020-
12/31/2020
2021 2022
Total
Units
to
Date
Remaining
RHNA By
Income
Level
Very-Low
Deed Restricted
2,750
12 - 95
107 2,643
Non-Deed Restricted - - -
Low
Deed Restricted
1,777
- 66 276
342 1,435
Non-Deed Restricted
Moderate
Deed Restricted
1,911
- - -
- 1,911
Non-Deed Restricted - - -
Above Moderate 4,667 1,735 1,633 804 4,172 495
TOTAL RHNA 11,105
TOTAL UNITS 1,747 1,699 1,175 4,621 6,484
Extremely- Low 1,375 - 29 - 29 1,346
ADUs 140
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The 371 deed restricted units include 198 units at Columba in Millenia and 173 units at Encelia in Village 8 West. It should be noted that in the 2021 APR, Casa Anita deed restricted units (95) were inadvertently left off of the table, however they have be en included in this report . The City has met nearly 42% of its RHNA allocation two full years into the current HE cycle. Other notable programmatic accomplishments during the reporting period include the following:
Housing Assistance Related Programs
Program Name
Number of Households
Assisted
Tenant Based Rental Assistance 22
COVID-19 Emergency Rental Assistance 2,842
Rapid Re-Housing (Homeless) 4
Hotel/Motel Voucher 4
Community Housing Improvement Program (CHIP) 4
Due to availability of Emergency Rental Assistance funding until April 2022 and priorities for staff to administer essential services during the COVID -19 pandemic, many programs had been placed on hold during the majority of the 2022-2021 timeframe and were reinitiated during 2022.
Code Enforcement Related Programs
Program Name Number of Inspections
Multifamily Housing Inspections 851
3 Mobile Home Inspection Program 128
New Reporting Items
Beginning with this reporting period, the required HCD reporting forms have been updated to demonstrate compliance with recent housing legislation and include:
Mobilehome park preservation activities
Reporting on Surplus Lands
Reporting on the Local Early Action Planning Grant
SB-341 Report
On January 1, 2014, SB -341 became effective, amending HSC Section 34176.1(f), requiring each housing successor agency that assumed the housing functions of a former Redevelopment Agency to prepare financial statements for the Redevelopment Housing Agency and post a separate report on its website containing information regarding the housing and financial activities of the LMIHAF of the former Redevelopment Agency for the previous year.
The Housing Successor Annual Report for Fiscal Year 2021-2022 is included as Attachment 3. As required by HCD, this report will be included with the submittal of the Housing Element Annual Progress Report. Some highlights from this report include a total deposit of $463,943 by the Housing Authority into the Housing Asset Fund from a variety of revenue sources. These revenues were offset by the change in the fair market values which resulted in a net loss of $37,893 from the Housing Asset Fund. A total of $13,496 was expended by the Housing Authority, all of which were for administrative costs. These included $8,810 from the Low to Moderate Housing Fund, which largely consisted of transfers out and $4,685 ex pended on the Orange Tree P a g e | 4
Mobile Home Park, which largely consisted of operating expenses and contracted services. The Housing Asset Fund balance as of June 30, 2022 was $13,068,795. The sources of funds consisted of loans receivable, the Orange Tree Mobilehome Park, cash and cash equivalents along with other miscellaneous items.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council member/Housing Authority Commissioner do not create a disqualifying real property -related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member/Housing Authority Commission Commissioner, of any other fact that may constitute a basis for a decision -maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There are no current-year fiscal impact s as a result of this action. All staff time and costs to prepare this report were included in the current fiscal year budget.
ONGOING FISCAL IMPACT
There are no ongoing fiscal impacts as a result of this action.
ATTACHMENTS
1. Housing Element 2022 Annual Report Executive Summary
2. Housing Element Reporting Forms (Calendar Year 2022)
3. Housing Successor Annual Report-SB-341 (Fiscal Year 2021-2022)
Staff Contact: Naader Ho, Management Analyst, Housing and Homeless Services Todd Philips, Planning Manager, Development Services