HOUSING IN COSTA MESA
STUDY SESSION AND UPDATE
July 12, 2022
2 CITY COUNCIL HOUSING GOAL
3 OVERVIEW
• Current Housing Data
• Current Housing Strategies
• Housing Element
• Ad Hoc Recommendations
• Proposed Ballot Measure
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5 • Approximately 47 percent of Costa Mesa households are low, very low or extremely low income, i.e. less than $72,296 in annual household income or 80% Area Median Income or less
• Half of renters and one-third of homeowners spend more than 30 percent of their income on housing
HOUSING DATA
6 • Average sales price for ownership housing - $870,000 • Average monthly rent - $2,200 for a studio to $3,200 for a 3 bedroom • Comparing income with monthly housing costs:
Moderate-income households (i.e. making $108,444 or less in annual household income, 81% to 120% AMI) cannot afford to own a home in Costa Mesa
Lower income households (making $72,296 or less in annual household income) cannot afford to own or rent in Costa Mesa without experiencing overpayment
Costa Mesa also has a low vacancy rate at 2.8%
HOUSING DATA
7 AVERAGE RENT IN COSTA MESA
Source: https://www.rent.com/california/costa-mesa-apartments/rent-trends
8 COSTA MESA RENT TRENDS
Source: https://www.zumper.com/rent-research/costa-mesa-ca
9 • 46.5% of Costa Mesa households have at least one of the following housing problems, which include:
Overcrowded conditions (housing units with more than one person per room – excluding bathrooms and kitchens);
High housing cost burdens where monthly housing costs
exceed 30 percent of income;
Severe housing cost burden, where monthly housing costs exceed 50 percent of income; and
Units with physical condition defects (e.g. lacking complete kitchen or bathroom).
HOUSING CONDITIONS
10 OVERCROWDING
11 HOUSING ELEMENT
COMMUNITY OUTREACH
• Housing Element Update kickoff in Summer
2020
• Community Outreach
Town Halls & District Specific Meetings
Community Survey with 465 responses
Subject Matter Expert / Group Meetings
Multiple Study Sessions
Three Planning Commission public
hearings
Two City Council public hearings
12 SUMMARY OF PUBLIC COMMENTS
• Overall, the City needs more housing
• Housing should be focused on
increasing quality of life for residents
• Need education about affordable
housing to increase awareness and
understanding
• Accessory Units should be affordable to
lower income households
• Need supportive services along with
housing
9 13
SUMMARY OF PUBLIC COMMENTS
• Overcrowding often occurs and there
is a need for multigenerational living
• Senior housing should be prioritized,
followed by housing for persons with
disabilities
• Established residential neighborhoods
should be preserved
• More affordable housing near transit
and jobs
• Overall need for more affordable
housing for residents of Costa Mesa,
both for renters and owners
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15 CURRENT CITY COUNCIL HOUSING STRATEGIES
• More than $18 Million in State COVID Rental Relief Funds • Total of $1.6M in local funding towards rental assistance • 20% Reduction in Citywide Unsheltered Homelessness
• Project Homekey (motel conversions to permanent housing) • ADU Development in the City (575 units projected in the next 8 years)
• Fairview Development Center (2,500 potential housing units) 16 FAIRVIEW DEVELOPMENT CENTER
• 102 acre site, State-owned
• Up to 2,500 housing units
development
• State committed $3.5
Million for City-led
community outreach and
planning efforts in most
recent budget
18 STATE MANDATED RHNA ALLOCATION FOR COSTA MESA
Income Category % of Area Median
Income (AMI)
RHNA Allocation
(Housing Units)
Very Low Income 0 - 50% AMI 2,919
Low Income 51 – 80% AMI 1,794
Moderate Income 81 – 120% AMI 2,088
Above Moderate Income >120% AMI 4,959
Total: 11,760
19 COSTA MESA HOUSING GUIDING PRINCIPLES
Principle #1
• The City will plan for
future housing primarily
along major
commercial, industrial,
and mixed-use
corridors within Costa
Mesa that are
compatible with growth,
while preserving
established residential
neighborhoods.
Principle #2
• Each neighborhood,
community, and district
within Costa Mesa has
its own unique
characteristics and
needs. Future housing
growth will build upon
Costa Mesa’s history
and complement the
diversity and unique
characteristics that
already exist within
each area.
Principle #3
• The City will plan for a
diverse range of
housing forms, types,
and densities to
address the housing
needs of an inclusive
and diverse community
and provide housing
opportunities that meet
the needs of all
residents, including
low-income
households, seniors,
multi-generational
families, larger
households, and
special needs groups.
20 HOUSING OPPORTUNITY SITES
• Preserve open space and established
residential neighborhoods
• Focus new housing opportunities on
already developed properties along
major commercial, industrial, and
mixed use corridors:
Harbor Boulevard;
Areas north of the I-405 freeway;
West 18th and 19th Streets;
Placentia Avenue; and
the SoBECA area.
• Create walkable district that minimize
traffic impacts
21 HOUSING OPPORTUNITY CORRIDORS (MAP #1)
22 HOUSING OPPORTUNITY CORRIDORS (MAP #2)
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24 HOUSING AD HOC COMMITTEE
• Housing Ad Hoc Committee was formed October 19, 2021
• The Ad Hoc Committee is comprised of three Councilmembers:
Mayor Pro Tem Marr, Councilmember Harlan, and
Councilmember Reynolds
• Formed to review and advise City staff on housing matters and to formulate housing recommendations to the City Council for action at public meetings.
25 STATE HOUSING ELEMENT CERTIFICATION
• The City submitted the Housing Element to the State for certification in October 2021 and resubmitted in February 2022. • In its comments, the State identified the City’s Municipal Code provisions which require a City-wide vote for land use plans and certain projects as “clearly a constraint on development and conflicts with meeting State requirements.” (Measure Y, 2016) • Failure to comply with State mandate can result in penalties including fines, losing the ability to issue housing permits, jeopardize future State funding, and losing local control of land use decisions.
26 STATE DIRECTION
• State HCD requested the City modify its Housing
Element Program 3G:
Create a schedule to review and address Measure Y as a constraint to accommodating the City’s RHNA allocation; Consider exceptions to Measure Y to meet the City’s RHNA; Consider other land use changes that may assist in reducing the Measure Y impacts on meeting the City’s RHNA; and
Identify steps that can be taken to reduce Measure Y as a housing constraint.
27 HOUSING AD HOC RECOMMENDATION
• In light of housing conditions and the State’s comment letter, the Ad Hoc hosted a Town Hall meeting on January 11, 2022 to receive community input and discuss options for achieving community housing goals in the context of the Measure Y constraints. • In addition, a community survey was conducted to obtain further feedback from Costa Mesa residents regarding their priorities as it relates to housing and economic revitalization. 400 residents surveyed.
• In order to move forward with community visioning efforts and land use plan updates, the Housing Ad Hoc Committee recommends that the City Council consider a ballot measure for the November 2022 election.
28 HOUSING AD HOC RECOMMENDATION
The proposed ballot measure should amend the City’s zoning code and be based on the following objectives:
1. Conducting a public visioning process resulting in updated land use plans for corridors and area north of the I-405 freeway
2. Revitalize corridors while keeping single family residential areas intact and restricting building heights
3. Providing affordable housing for middle- and working Costa Mesa families, youth, seniors, and individuals
4. Protecting open space and the environment
5. Requiring developers to pay impact fees for traffic, parks and open space
29 NEXT STEPS
Should the City Council approve of the Housing Ad Hoc’s recommendations, the City Council may provide the following direction:
1. Direct the Housing Ad Hoc to work with staff to develop ballot language
2. Direct staff and Housing Ad Hoc present the proposed ballot measure language at the next Regular City Council Meeting on July 19, 2022
• Deadline to put a ballot measure in the November 2022 ballot is August 2022.
• Should the City Council approve the ballot measure, the Measure would appear on the November 2022 ballot
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31 FORD RD & NEWPORT BLVD– BEFORE & AFTER
32 Sites Map
90 du/ac
61 du/ac - 89 du/ac
12 HOUSING OPPORTUNITY SITES
33 90 du/ac
61 du/ac - 89 du/ac
13 Sites Map
34 WHY IS HOUSING AFFORDABILITY IMPORTANT?
• Social determinants of health