Empower individuals & families ● Build community resilience ● Promote housing opportunities ● Enhance quality of life
HOUSING &
HOMELESS SERVICES
Housing Policy
Item 8.1∙ City Council ∙ May 21, 2024
Overview
Title 19 Code Amendments
Add Chapter 19.91 (Inclusionary Housing)
Amend Chapter 19.90 (Affordable Housing Incentives)
Amend Section 19.58.460 (Objective Design Standards)
Add Chapter 19.93 (Residential For-Sale Affordable
Unit Requirements)
Add Chapter 19.94 (Marketing, Application, Lottery, and Waitlist Requirements for Affordable Rental Housing
Projects
Title 19 ∙ Planning and Zoning
A1
A2
A3
A4
A5
Overview
Resolutions and Code Amendments
Amend Master Fee Schedule
1) Inclusionary housing in-lieu fee
2) Monitoring fee
Repeal Council Policy No. 453-02
(For-Sale Affordable Policy)
Amend CVMC Chapter 17.10
(Parkland Acquisition & Development Fee)
Resolve to revise Housing Authority bond policies
Resolve to appropriate funds for Local Housing Trust Fund Resolve to apply for Prohousing Designation
D
B
C
E
F
G
Background
Regional Housing Needs Allocation (RHNA)
RHNA is a minimum projection of additional housing units needed to accommodate projected household growth of all income levels by the end of the housing-element’s statutory planning period.
State (HCD)
• Identify total
number of
homes to meet
the regional
housing needs
of people
across
spectrum of
income levels
Region
(SANDAG)
• Allocate share
to each local
government
Local
Government
• Update
Housing
Elements and
local zoning to
show how
RHNA will be
accommodated
Background
Housing Production, 2013-2020
Background
2021-2029 RHNA Targets, Production & Projection
Projection at
end of HE 408 units 1,064 units 0 units 11,005 units without policy 15% 60% 0% 236% updates
Background
Housing Element Commitments
Action 3.4
• Review and update Balanced Communities
Policy (Inclusionary Housing) within 36
months of Housing Element adoption
Action 3.6
• Update Chapter 19.90 (Density Bonus) within
24 months of Housing Element adoption
Action 4.1
• Affirmatively further fair housing
Inclusionary Housing
History
1981
• Balanced Communities Policy
• Projects 50+ units, 10% affordable
2005 –
2008
• In-lieu fee established
($12,422/market rate unit)
2012
• Administrative guidelines established
• Western Chula Vista exempted
2022 • Western Chula Vista exemption repealed
A1
Chapter 19.91 - Inclusionary Housing
Stakeholder Engagement
• BIA
• Development Oversight CommitteeJune 2023
• Stakeholder & Public Meetings
• Housing & Homeless Advisory
Commission
October 2023
• BIA
• Development Oversight Committee
• City website
Jan/Feb 2024
• Stakeholder & Public Meeting
• City websiteMarch 2024
Prototypes for
Feasibility Study
Conceptual
Draft
1st Draft
Ordinances
2nd Draft
Inclusionary
Ordinance
A1
Chapter 19.91 - Inclusionary Housing
Methodology
Reviewed
Identified
Analyzed
Calculated
Considered
Developed
Revised
Reviewed zoning, development patterns, and context
Identified 5 development prototypes
Analyzed costs and revenues for each prototype
Calculated cost gap to provide units at an affordable price Considered developer feasibility based on industry metrics Developed policy recommendations
Revised recommendations based on public input
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Inclusionary Housing
Proposal
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Inclusionary Housing
Planning Commission Recommendation
Planning Commission Reasoning
for 25-unit threshold
Staff Reasoning for 10-unit
threshold
• Smaller projects have lower profit
margins - same fixed costs, therefore
don't benefit from economies of
scale
• Developers will seek to build smaller
projects / fewer units to avoid fee
• Progress towards RHNA targets
• May incentivize use of Density Bonus,
leading to more overall units
• Research doesn’t indicate disparity
between small/large projects
• A higher minimum threshold will create
a greater fiscal cliff, incentivize evasion
• Round number simpler to administer
Recommend revising minimum unit threshold to 25 units
A1
Inclusionary Housing
Comparative Analysis
All San Diego jurisdictions have a minimum threshold of 1 to 10 units.
A1
Inclusionary Housing
Alternative Compliance
• Off-site Affordable
• Land Dedication
• Market Rate Unit
Conversion
• Preservation of At-Risk
Housing
• Credit for Additional
Affordable Units
• Incentive Credits for
Deeper Affordability
A1
Inclusionary Housing
In-Lieu Fee
$8 per square foot (ownership)
$16 per square foot (rental)
$12,422 per market-rate unit
Apartment
750 sf
$12,000/unit
Townhome (ownership)
1,200 sf
$9,600/unit
Large house (ownership)
3,000 sf
$24,000/unit
Current
Propose
d
Prototype
Examples
B1
Inclusionary Housing
Potential Impact
Project Address
Density
Bonus?
Affordable
Units
Market
Rate Units
The Union Apts 245 Bonita Glen Yes 14 147
Azul Apts 310 K Street Yes 3 43
Backhouse
Apts 252 Church St No 0 31
Casa Estilo 795 3rd Ave Yes 16 110
Chula Vista
Seniors 178 3rd Ave Yes 57 1 (Mgr)
Casa Anita 760 Anita St Yes 95 1 (Mgr)
Total 185 333
Western Chula Vista multifamily housing production, 2021-23 A1
Housing Policy
Pause for Council
clarifying questions
A1
B1
Chapter 19.90 - Density Bonus
Proposed Amendments
State law (Gov’t Code Section 65915)
• Development incentives in
exchange for affordable units
• Amended frequently
Local Update to defer to State law
A2
Section 19.58.460 - Objective Design Standards
Proposed Amendments
Minor clerical edits for consistency with State and local municipal code (Density Bonus, Inclusionary)
A3
Chapter 19.93
For-Sale Affordable Unit Requirements
Codifies longtime Council Policy (453-02)
Details covered in Administrative Guidelines
Provides criteria for advertising and sale of
affordable homeownership units
Requires Value Capture Agreement
(Shared Appreciation Loan)
- City recycles principle + a portion of equity growth
- More efficient than resale restrictions
A4
Chapter 19.94
Marketing, Application, Lottery, and Waitlist
Requirements for Affordable Rental Housing
Title VI of the Civil Rights Act of 1964
Fair Housing Act
California's Fair Employment and Housing Act
Local Preferences
Robust Outreach Lottery
A5
Chapter 19.94
Affordable Lottery Preferences
1st
• Chula Vista residents displaced due to government action; or • Currently receiving program services & referred by Housing & Homeless Services. 2nd
• Residents who received a no-fault termination of tenancy, within past 2 years, which was subject to Chula Vista Municipal Code Chapter 9.65 (Residential Tenant Protection).
3rd
• People who currently live or work in Chula Vista.
4th
• All other eligible members of the general public.
A5
Monitoring Fees
(Non-Bond Affordable Projects)
$70 per unit per year
• Physical inspections
• File reviews
B2
Parkland Fee Exemptions for
100% Affordable Projects
• Residential projects must
dedicate land and construct
parks or pay in-lieu fees
• Current case-by-case
Council waiver process
• Proposal would provide
administrative exemption
for 100% affordable
projects
Western Chula Vista
$10,783/unit
Eastern Chula Vista
$16,484/unit
D
Parkland Fee Exemptions for
Affordable Units
• Streamlined process
• Attract state and federal investment
• Progress toward affordable production goals
Congregational Place
56 units for low-income seniors
$603,848 PAD fees waived
Chula Vista Seniors (178 3rd Ave)
58 units for low-income seniors
$625,414 PAD fees
D
Bond Policies
Chula Vista Housing Authority
• Housing Authority to be
primary conduit bond issuer
• Greater regulatory oversight
• Does not affect City’s bond
capacity or credit rating
CDLAC
Bond
Issuer
Affordable
Project
E
Local Housing Trust Fund
(LHTF)
• $500,000 appropriation into
new “Local Housing Trust
Fund” account
• Creates eligibility for HCD
matching grant
• Summer application window
• To be used for affordable
housing development
F
Prohousing Designation
• HCD program
• 47 other jurisdictions have qualified
• More funding opportunities for Affordable Housing
G
HOUSING &
HOMELESS SERVICES
Item 8.1 Recommended Action
Approve the proposed code
amendments and resolutions designed
to facilitate housing production and
fulfill Housing Element commitments.