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Agenda Report

Costa Mesa City Council
September 24, 2024

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City of Costa Mesa
Agenda Report

77 Fair Drive
Costa Mesa, CA 92626
Item #: 24-344 Meeting Date: 09/24/2024
TITLE: STUDY SESSION PROVIDING A HOUSING ELEMENT UPDATE & DEVELOPMENT

SERVICES PROCESS IMPROVEMENTS TO FACILITATE HOUSING DEVELOPMENT

DEPARTMENT: ECONOMIC AND DEVELOPMENT SERVICES DEPARTMENT/PLANNING

DIVISION

PRESENTED BY: ANNA MCGILL, PLANNING & SUSTAINABILITY DEVELOPMENT MANAGER

CONTACT INFORMATION: ANNA MCGILL , PLANNING & SUSTAINABILITY DEVELOPMENT MANAGER, (714) 754-5609

RECOMMENDATION:

Staff recommends the City Council receive the staff presentation regarding Housing Element implementation progress, and development services resource enhancements, and provide feedback.

BACKGROUND:

On May 9, 2023, the California Department of Housing and Community Development (HCD) confirmed by letter that the City’s approved 6 th Cycle (2021- 2029) Housing Element meets the statutory requirements of State Housing Element Law and is complete. The letter also affirmed the State’s expectation that the City would “continue timely and effective implementation of all programs”.

• State HCD May 9, 2023 letter approving the Housing Element:
https://www.costamesaca.gov/home/showpublisheddocument/54373/638198511785300000

The Housing Element, Chapter 4 Housing Plan, identifies specific programs aimed at providing additional housing opportunities, removing governmental constraints to affordable housing, improving the condition of existing housing, and providing equal housing opportunities for all residents. There are 47 programs identified in the Housing Element Chapter 4 (Housing Plan) slated for completion within the eight-year Housing Element planning period, most of which are slated for completion within three years from adoption (in 2026). Many of the approved programs are required by State law and each program is required to include a specific completion timeline.

• Housing Element, Chapter 4, Housing Plan:
https://www.costamesaca.gov/home/showpublisheddocument/52834/638133568853530000

On December 12, 2023 , staff provided the City Council a comprehensive overview of the Housing Element and its 47 programs, as well as applicable timelines and staffing for the phased implementation of these programs. A summary of the 47 programs with required timelines is attached to the December 12, 2023, Agenda Report (linked below).

Item #: 24-344 Meeting Date: 09/24/2024

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• December 12, 2023, Study Session Agenda Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6447567&GUID=63280D11-8166- 44E4-90A1-0F691DA8BF0F

ANALYSIS:

This study session is intended to build from the prior study session and provide a status update on the programs and their ongoing rollout, including timelines and required resources associated with their completion.

REGIONAL HOUSING NEEDS ASSESSMENT (RHNA)/HOUSING PRODUCTION UPDATE

The City has a Regional Housing Needs Assessment (RHNA) allocation of 11,760 housing units to meet its portion of the projected regional housing needs (Table 1). The City is not required to construct housing to meet its RHNA obligation; however, the City is required to have in place the land use provisions (i.e. zoning and other regulatory frameworks) and programs to facilitate housing.

Table 1: 2021 - 2029 City of Costa Mesa RHNA Housing Needs Allocation Income
Category
% of
Median
Family
Income
Income Range RHNA Allocation
(Housing Units)
Pipeline
(Housing
Units) Min. Max.

Very Low
Income
0 – 50% -- $51,500 2,919 units 392
Low Income 51 – 80% $51,501 $82,400 1,794 units 238
Moderate
Income
81 – 120% $82,401 $123,600 2,088 units 35
Above
Moderate
Income
> 120% $123,601 > $123,601 4,959 units 2,395
Total: 11,760 units 3,060

Throughout the 2021-2019 Housing Element planning period, the City continues to monitor and track the number of housing units in the “pipeline” (constituting projects within entitlement review, entitled, under construction and recently constructed). These units officially count towards the RHNA when a building permit is pulled. As of the release of the staff report, the City has 3,060 housing units in the pipeline, compromised of the following 14 distinct projects. These pipeline projects constitute approximately 26% of the total RHNA allocation and are categorized as larger scale projects (Table 2) and smaller scale projects, such as Accessory Dwelling Units (Table 3).

Item #: 24-344 Meeting Date: 09/24/2024

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Table 2: City of Costa Mesa Pipeline Projects
Project Address Project
Status
Very
Low
Income
Low
Income
Moderate
Income
Above
Moderate
Income
Total
Units
1683 Sunflower
Avenue (One Metro
West)
Entitled 67 39 - 951 1,057
1711-1719 Pomona
Avenue
Entitled - - - 8 8
1540 Superior
Avenue
Entitled - - - 9 9
3333 Susan Street
(Hive Live)
Entitlement
review in
process
45 - - 1,005 1,050
3150 Bear Street Entitlement
review in
process
8 - - 138 146
960 West 16th
Street
Entitlement
review in
process
- - - 38 (live
work)
38 2020 Victoria Place Entitlement
review in
process
- - - 40 40
215-223 Mesa Drive Entitlement
review in
process
- - 1 5 6
2205 Harbor
Boulevard
Entitlement
review in
process
46 - - - 46
695 19th Street
(Jamboree Senior
Housing)
Entitlement
review in
process
35 34 - 1 70
2193 Pacific
Avenue
Entitlement
review in
process
- - - 10 10
2274 Newport
(Homekey Phase 1)
Construction
to start end
of 2024
80 - - - 80
1400 Bristol Street
(Homekey Phase 2)
Construction
to start 2025
76 - - 2 78
2039 Pomona
Avenue
(Bungalows
Project)
Constructed 8 - - - 8
Total: 2,646

Item #: 24-344 Meeting Date: 09/24/2024

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In addition, 414 small scale pipeline residential units (single-family, duplex, accessory dwelling units, etc.) are summarized by reporting year for the Annual Housing Element Progress report (October 2021-2023), included in Table 3 below. These units will count towards the City’s RHNA for the current Housing Element planning period and have also been included in the totals for Table 1 above.

Table 3: Small Scale Pipeline Projects (Single Family-Duplex, Accessory Dwelling Units, etc.)

Annual
Element
Progress
Reporting
Year
Very Low
Income
Low Income Moderate
Income
Above
Moderate
Income
Total
October
2021-
December
2022
14 78 16 24 132
2023 13 87 18 164 282
Total: 414

Fairview Developmental Center

Lastly, the City , in conjunction with PlaceWorks, is preparing a Specific Plan, General Plan Amendment and Environmental Impact Report to guide the reuse of the 113-acre State-owned Fairview Development Center (FDC). An update to this effort is detailed later in this report. The three land use concepts shared with the public during recent outreach efforts accommodate between 2,300 and 4,000 housing units. Of these units, the land use concepts further identified the potential for 575 very low , 325-345 low, and 325-690 moderate-income housing units.

Accounting for the units in
pipeline projects and FDC would equate to 5,360-7,060 total units, almost 50% of the City’s RHNA.

HOUSING PROGRAMS ALREADY COMPLETED OR UNDERWAY

The December 12, 2023, City Council Study Session included a comprehensive overview of the City’s 47 housing programs committed to in the 2021-2029 planning period. The following information focuses on housing program updates, progress, and implementation since the last study session. Attachment 1 provides an overview of the 47 programs (grouped into categories for ease of reference) and associated timelines for completion.

Monitoring and Preservation of At-Risk Housing Units [Program 1C]

The City has 1,144 total housing units with affordability covenants. Of these units, 75 very-low income are located at 1844 Park Avenue (Casa Bella Apartments) and were identified as at-risk of converting to market rate during the 2021- 2029 Housing Element planning period. The City has reached out to the property management company (Moss Management Services, Inc.) and confirmed that they hold an agreement with the United States Department of Housing and Urban Development (HUD), which renews every five-years, and mandates restricting the units under an affordability covenant for the life of the project. As these units are no longer at risk of converting to market rate, this Housing Element program is considered complete.

Item #: 24-344 Meeting Date: 09/24/2024

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Promote Development of Accessory Dwelling Units (ADUs) [Program 3E]

In compliance with the Accessory Dwelling Units: Preapproved Plans Act ( AB 1332 ), the City is developing a program for access to preapproved accessory dwelling unit plans, which will be available on the City’s website by January 1, 2025. This program will allow architects, contractors, and ADU construction companies to submit for review and approval preapproved ADU plans/designs. Costa Mesa residents would then be able to pick any of the preapproved ADU plans on the City’s website and submit for an expedited review process. Applicants will still need to provide certain property - specific information such as a site plan, Title 24 (energy code) analysis, roof truss calculations, etc.

The program is intended to facilitate development of ADUs for Costa Mesa resident ial property
owners who will benefit from a pre -vetted list of ADU designs that can be reviewed and approved expeditiously by the Economic and Development Services Department.

Bridge Homeless Shelter [Program 4F]

In April 2021, the City of Costa Mesa completed the construction of its permanent Bridge Shelter containing 72 beds. On June 6, 2023, the City Council approved a capacity increase to 85 beds. On August 1, 2023, the City Council approved the submission of a joint application with the Orange County Health Care Agency to the State Department of Health Care Services for funding to add yet another 15 behavioral health beds and associated services at the Shelter. The City has since received an award of $4.2 million dollars
to implement the additional beds, and the Shelter’s total capacity has now increased to 100 beds. With the Shelter in full operation, the City is able to assist up to 100 residents at one time and connect them with services and potential permanent housing solutions.

In addition, on December 7, 2023, the CalOptima Board of Directors selected Costa Mesa as one of two cities to receive their innovative Street Medicine Program, which delivers primary and behavioral health care to both sheltered and unsheltered people. The Street Medicine at the Bridge Shelter
launched on August 12, 2024, and services are being provided to the public.

Regional Assessment of Fair Housing/Five-Year Consolidated Plan [Program 4A]

The City is participating in a Regional Assessment of Fair Housing in accordance with current U.S.

Department of Housing and Urban Development (HUD) guidelines for 2025-2029, along with 33 other participating jurisdictions in Orange County. Community meetings throughout the fall/winter will be held across the county to obtain input on fair housing issues that affect residents in Orange County.

Additionally, the City is updating its Five-Year Consolidated Plan, which identifies the City’s housing and community needs and outlines a strategy to address identified needs utilizing HUD funds (CDBG and HOME). City staff are preparing to release a survey and schedule community meetings in October to solicit local resident input regarding housing and community development needs. More information on the Regional Assessment of Fair Housing and Five -Year Consolidated Plan can be found on the City’s website below, under the “Five-Year Consolidated Plan” tab.

• Housing and Community Development:
https://www.costamesaca.gov/government/departments-and-divisions/economic-and- development-services/housing-and-community-development

Item #: 24-344 Meeting Date: 09/24/2024

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The Bungalows Project (2039 Pomona Avenue) [Program 4A]

This project included remodeling six existing dwelling units and constructing two additional detached accessory dwelling units. The site is now managed by “ Families Forward” and provides housing for families experiencing homelessness. The project was completed in early 2023. Families F orward partnered with HomeAid Orange County, a Tustin nonprofit that coordinates with building professionals willing to offer material discounts, labor, and in-kind donations to reduce the costs of building projects for those at risk of homelessness. Occupants of the “The Bungalows” are selected through an application process, with preference given to those with residential, professional, or educational ties to Costa Mesa currently experiencing homelessness, living in a shelter or in temporary accommodations.

Under the living arrangement, residents of “The Bungalows” will pay an affordable monthly rent, ranging from approximately $1,150 to $1,350 per month, while receiving ongoing assistance, education and services designed to help them regain financial self-sufficiency. With in-kind donations reducing costs by more than $500,000, the total cost of the project was approximately $4 million dollars. To help bridge the financial gap, the Costa Mesa City Council in November 2022 granted $975,000 in Federal American Rescue Plan Act funding to Families Forward to complete the work. This project is now complete, and the units are fully occupied.

Project Homekey (2274 Newport Boulevard) [Programs 3F and 4A]

The Motel 6 property located at 2274 Newport Blvd involves the acquisition and two- phase adaptive reuse of an 88-unit motel into permanent housing. All motel rooms will be converted to 300-square-foot studio apartments with new kitchenettes, countertops, flooring, paint, fixtures, appliances, and furniture.

Additional common areas for residents will include a new outdoor patio, smoking area, dog run, and community garden to encourage social interaction among residents. Pedestrian access at Newport Blvd. will be enhanced, encouraging residents to walk to nearby community and commercial amenities.

Aesthetic improvements will include building façade enhancements, public art, and substantial upgrades to existing landscaped areas. This project will be developed in two phases.

Phase I includes making 40 housing units available to individuals earning 30% or less than the Area Median Income, 30 of which are permanent supportive housing units serving homeless veterans, and 10 of which are for homeless individuals who meet the Menta l Health Services Act eligibility
criteria. Funding resources for construction of Phase II have been secured and building permit plans are in review. Construction is expected to commence by the end of the year. To help finance the project, the Costa Mesa City Council approved a $3.5 million ARPA funded grant, a $1.5 million HOME funded loan and an $850,000 Low and Moderate Income Housing Fund loan to help finance the project.

Project Homekey (1400 Bristol Street) [Programs 3F and 4A]

A second Homekey Project has been approved at the former Travelodge Inn at 1400 Bristol Street.

American Family Housing, Inc. and the County of Orange have secured a $29.0 million dollar grant to acquire the site and convert existing rooms into 76 income/deed-restricted and two manager’s units.

Construction is anticipated to begin in 2025. For this project, the City Council approved a $1.5 million ARPA funded grant and a $2.5 million Low and Moderate Income Housing Fund loan to help bridge the remaining funding gap.

Item #: 24-344 Meeting Date: 09/24/2024

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Jamboree Senior Housing Project (Senior Center 695 West 19th Street) [Programs 2D and 4A]

In 2020, the City Council approved an Exclusive Negotiating Agreement (ENA) to partner with Jamboree Housing Corporation in determining the feasibility and potential terms for the right to acquire a long-term leasehold interest in an approximately 0.90- acre portion of the parking lot at the Senior Center to develop affordable housing for Costa Mesa’s seniors.

The Urban Master Plan Screening for the project was presented to the City Council at its February 20, 2024, meeting and the project is in entitlement review. Since this meeting, the applicant has increased their unit count from 60 to 70 affordable housing units, (69 senior units plus one manager’s unit). The units will be restricted to provide a combination of very low- and low-income units.

• February 20, 2024, Urban Master Plan Screening City Council Agenda Report:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6504116&GUID=ADB4CE5A- CCEE-4094-9DA6-10D826406BD9

Affordable Housing (Inclusionary) Ordinance [Program 2A]

The City initiated the affordable housing ordinance effort in 2021 by retaining Keyser Marston Associates (KMA). KMA and staff completed the required Financial Evaluation and held 17 stakeholder meetings, as well as numerous Planning Commission and City Council meetings to develop and finalize the draft Ordinance. On April 2, 2024, the City Council approved a motion to make changes to the Ordinance and bring back for a second reading. On August 6, 2024, after extensive discussion and deliberation, the City Council gave second reading and adopted the O rdinance and approved, by resolution, in-lieu fees. The Ordinance went into effect on September 6, 2024.

• August 6, 2024, Affordable Housing City Council Agenda Report and Minutes:
https://costamesa.legistar.com/LegislationDetail.aspx?ID=6816039&GUID=25853D49-9834- 48F6-AA12-8841A927FF9A
https://costamesa.legistar.com/View.ashx?M=M&ID=1203536&GUID=D883DE47-39CF- 45F9-AF61-28A9240F3B2D

Housing Trust Fund

To further support affordable housing efforts, a $2.5 million contribution was made during the budget making process for Fiscal Year 2024-25, from the City’s General Fund for a new Housing Trust Fund including a first-time homebuyer’s program. Staff will be bringing the item back to the City Council to further elaborate on and finalize the housing activities eligible for the Funds. Please note this fund is separate and apart from the Housing Authority Fund that contains funding for the Citywide rezoning and visioning efforts financed by year-end General Fund savings in previous years. It is also separate and apart from the In-Lieu-Fee Fund that will potentially receive affordable housing in-lieu payments from developers pursuant to the City’s adopted Affordable Housing Ordinance.

Fairview Developmental Center Specific Plan [Program 3B]

Staff initiated the Fairview Developmental Center (FDC) Specific Plan project in 2023, retaining “Placeworks” and advance planning staff to manage the $3.5 million-dollar, two -year project. The

Item #: 24-344 Meeting Date: 09/24/2024

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current phase of the project generally includes the preparation of a specific plan and associated environmental review for the re-use of the site with a range of affordable and market rate housing.

Since the last study session with City Council, technical studies have been completed and the City continues to hold bi -weekly coordination meetings with the State Department of General Services (DGS) and Department of Development Services (DDS). In addition, staff/Placeworks have coordinated/hosted 18 community outreach events on the visioning and land use framework, as well as land use concepts, mobility, and urban design.

It is anticipated that in November/December 2024, the Planning Commission will hold a Study Session to obtain input on the land use concepts that were presented to the community, as well as financial information which will be used to create a preferred land use plan for the FDC Specific Plan. Soon after the Study Session, staff anticipates returning to the Planning Commission for a recommendation to the City Council on the preferred plan for final direction. Following these hearings, staff will proceed with preparation of the specific plan and environmental review. More information on this process can be found on the project webpage: fdcplan.com.

General Plan Amendments (Specific Plan Amendments/Land Use), Rezoning of Corridors and Urban Plans and Objective Design Standards (“Citywide Rezone Program”) [Programs 3C, 3D, 3H, 3I, 3J, 3N, 3R]]

In addition to the pipeline housing projects mentioned above that are currently underway, and the future re development of the Fairview Developmental Center , which combined total approximately 5,360 units, or 46 percent of the City’s RHNA allocation, the separate “citywide rezone program” will create the framework for additional future development of new housing in compliance with the City’s Housing Element. These programs are complex multi-year efforts that will require policy and process modifications to facilitate new development while preserving existing residential neighborhoods.

These major programs will involve community visioning and engagement , as well as environmental review to comply with the California Environmental Quality Act.

1. Community Visioning and Objective Residential Design Guidelines for properties within Urban Plan Areas and along the City’s Commercial and Industrial Corridors:

Various state laws, such as the State Housing Accountability Act (SB 167), Streamlined Affordable Housing Act (SB35/SB423), Housing Crisis Act (SB 330), Housing and High Road Jobs Act (AB 2011), and Affordable Housing on Faith Lands Act (SB 4), require a streamlined review and approval process for qualifying residential projects that meet objective standards.

Objective design standards as defined under State law are “standards that involve no personal or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal” (California Government Code Section 65913.4).

Through the community visioning process, the community will help refine design requirements that create high-quality neighborhoods but can also accommodate the range of densities necessary for Housing Element compliance. The design standards and guidelines will be crafted to provide more certainty in the housing permitting process and to ensure quality developments at a variety of scales.

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2. General Plan, Specific Plan and Urban Plan Amendments [Programs 3C, 3D, 3H, 3I, 3J, 3N, 3R] focusing on Creating Housing and Revitalization Opportunities along the City’s Commercial and Industrial Corridors:

The Housing Element identified 97 “housing opportunity sites” to accommodate projected housing needs, primarily along commercial and industrial corridors. Only three of these sites are vacant. Presently, residential, and mixed- use development on 79 of the opportunity sites are guided by Specific Plans and Urban Plans that were approved many years ago.

Building upon the completion of residential design guidelines and objective design standards described above, the City will update and incorporate those community visions and standards into the City’s General Plan, North Costa Mesa Specific Plan, and Urban Plans. The following updates are anticipated and may be phased for efficiency of resources:

o Incorporate objective design standards into the General Plan o Update the North Costa Mesa Specific Plan
o Update or replace the City’s Urban Plans (19 West Urban Plan, SoBECA Urban Plan, Mesa West Bluff Urban Plan, and Harbor Mixed-Use Overlay) o Create Corridor Plans or applicable Mixed-Use Zoning Districts  Harbor Boulevard
 17th Street Corridor Area
 Bristol Street
o Update the Newport Boulevard Specific Plan
o Evaluate the potential for residential opportunities in airport industrial areas

3. Zoning Ordinance Updates

a. Definitions [ Programs 2F (persons with disabilities), 2H, 2J, 2O, and 4E] b. Development Standards [ Programs 2E, 2M, 4G, and 4E] c. Planning Application Fees (2K)

These programs require analysis, and where necessary, updates to residential parking standards, certain housing definitions and terminologies, and changes to the City’s development review process and findings to help streamline project approvals. It is anticipated that these updates will be included in the citywide rezone program update. However, certain minor amendments to comply with State law or correct inconsistencies will be incorporated in the City’s annual code clean-up effort, anticipated to be brought to hearing in winter 2024/25.

The objective of Program 2K is to review application fees, with a special focus on the density bonus fee, and update the fee(s) to avoid creating a constraint to the development of affordable housing. Additionally, the citywide rezone program will neces sitate further review of the local development review process for new housing application types and planning application fees.

The City is preparing to release a Request for Proposals (RFP) for a qualified, innovative, and dependable multidisciplinary consultant to work with the Economic and Development Services Department to implement the identified Housing Element programs that will involve re-zoning portions of the City, and updating, and/or creating new policies, procedures, and development standards to

Item #: 24-344 Meeting Date: 09/24/2024

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encourage and facilitate housing development. Staff anticipates a t minimum a two (2) year time frame, or longer, for completion of this project, which will include the zoning code, General Plan, and other adopted plans to be amended, primarily due to the City’s current extensive and varied land use regulations. The RFP is anticipated to be released in October /November 2024 with a final contract returning to the City Council for approval in early 2025.

4. Safety Element Update and Environmental Justice Policies [2G]

In conjunction with the Climate Action Adaption Plan process, intended to commence before the end of the year, with a contract being presented to the City Council for approval in October, a working draft of the Safety Element has been prepared that incorporates references to the City’s Local Hazard Mitigation Plan , as well as to address other applicable State laws (SB 1035-Flood and Hazards and AB 747/SB 99-Evacuation Routes).

As part of this process, staff will also be evaluating other General Plan Elements to incorporate environmental justice policies pursuant to the Planning for Healthy Communities Act (SB 1000).

This law requires the City to develop and incorporate General Plan policies for lower income areas of the community that are disproportionately burdened by pollution and other hazards that can lead to negative health outcomes. Part of this effort will be to identify existing General Plan policies that address environmental justice issues. The specific purpose of SB 1000 is to “address unique or compounded health risks in disadvantaged communities by decreasing pollution exposure, increasing community assets, and improving overall health” (Office of Planning and Research, General Plan Guidelines June 2020).

ORGANIZATIONAL RESOURCE ENHANCEMENTS

Implementation of the ambitious programs in the Housing Element has necessitated review and reconsideration of the organizational structure of the Development Services Department , staffing levels, and citywide resources. Additionally, the City continues to refine and enhance development permit processes in order to deliver more efficient, swift and comprehensive customer service. Further information regarding current and future improvements to the City’s development processes, including an update on the implementation of the City’s Totally Electronic Self Servi ce Application (TESSA), and other upcoming process enhancements, will be provided to the City Council in October.

Organizational Structure

A significant organizational change within the Economic and Development Services Department was the creation of a dedicated advance planning team focused on the development and implementation of the City’s long-range planning programs, including but not limited to the following tasks:

• Housing Element Implementation: FDC Specific Plan, intensive zoning code amendments, re- zoning and General Plan amendments required to implement Measure K, development of objective design standards, and other programs identified in the approved Housing Element. • Inclusionary/Affordable Housing Ordinance : implement, monitor, manage and enforce the adopted inclusionary ordinance. These tasks include but are not limited to assisting developers with the City’s new inclusionary housing program, the collection and management of in- lieu fees, preparation of requests for proposals for housing projects funded by in-lieu fees, agenda reports for allocation of in -lieu housing funds, creation of community development

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partnerships, preparation and monitoring of affordable housing agreements for inclusionary projects, annual rent certifications to ensure required units are rented to households at the appropriate income levels, and appropriate tracking and reporting of units to the State annually. • Climate Action Adaption Plan : manage the City’s Climate Action Adaption Plan process in conjunction with other City departments, including updates to the General Plan Safety Element and identification/creation of Environmental Justice policies. • Monitor/Implement State Legislation : monitor state legislation and identify any zoning code updates for compliance with state law.
• Grants: monitor grant opportunities for advance planning projects, applying for applicable grants, and process grant reimbursement for awarded grants.

Staffing

The dedicated advance planning team consists of one (1) Assistant Planner, one (1) Senior Planner, and one (1) Principal Planner. City staff also requested one (1) additional full -time Planning and Sustainable Development Manager as part of the mid- year budget amendments in FY23-24 to oversee and lead the team focused on these efforts. This position was filled in June 2024.

In addition, a new full-time Building Permit Technician position was added to the budget in order to better streamline and expedite permit processing for all types of projects. Future staffing enhancements, if any, will be recommended in future years’ budget making processes.

Next Steps
This report provides an update on the City’s housing element implementation to date, and the status of achieving the goals outlined in the 47 programs contained therein. Due to the City Council’s outstanding leadership and focus on this crucial area, the City has been able to achieve completion status for some of the plan’s programs and is well underway on many others . Project entitlements have already been granted, or are currently under review/in process, for about 26 percent of the City’s 11,760 housing units RHNA allocation. Moreover, the City’s extensive efforts and progress with the State Department of General Services on the redevelopment of Fairview Developmental Center is a significant accomplishment, bringing the total number of housing units for which there has been significant preparation and work done to essentially 50 percent of the City’s RHNA allocation.

That said, there is still more work to be done. In the coming weeks, the other major programs in the housing element’s implementation will get further underway, most notably the visioning process that will set the groundwork for extensive rezoning efforts to facilitate housing development along the City’s major commercial corridors moving forward; while Staff continues to implement the largest single housing development project on surplus land currently underway with the State.

ALTERNATIVES:

This is an informational item only.

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FISCAL REVIEW:

The item is informational in nature and has no impact on the City’s budget. The Housing Authority Fund 222 budget includes $2.4 million towards the Housing and Visioning Plan implementation.

LEGAL REVIEW:

The City Attorney’s Office has reviewed this report as to form.

CITY COUNCIL GOALS AND PRIORITIES:

• Diversify, stabilize, and increase housing to reflect community needs. • Advance environmental sustainability and climate resiliency. • Achieve long term fiscal sustainability.

CONCLUSION:

This is an informational item regarding Housing Element implementation progress, organizational resources, and staffing updates related to housing development . Staff recommends that the City Council receive and file this report and provide feedback as appropriate.

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