DATE:
September 6, 2022
TO:
Adam Politzer, Interim City Manager
FROM:
Charles S. Byrant, Community Development Director
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Authorizing Submittal Of A Prohousing Designation Program Application To The California Department Of Housing And Community Development Recommendation
Staff recommends that the City Council review and provide input on this staff report and on the attached Prohousing Designation Program score sheet and approve the above-entitled resolution authorizing submittal of the application to the State.
Background
In an effort to address the housing crisis in the State of California, as part of the 2019-2022 Budget Act, the legislature enacted AB 101 and established the Prohousing Designation Program. The Prohousing Designation Program identifies local policies that jurisdictions should consider adopting to address housing needs and affordability, and identifies State programs and grants for which Prohousing designated jurisdictions should receive preference or additional points.
Per Section 65589.9(f)(2) of the California Government Code:
“Prohousing local policies” means policies that facilitate the planning, approval, or construction of housing. These policies may include, but are not limited to, the following:
(A) Local financial incentives for housing, including, but not limited to, establishing a local housing trust fund. (B) Reduced parking requirements for sites that are zoned for residential development. (C) Adoption of zoning allowing for use by right for residential and mixed-use development. (D) Zoning more sites for residential development or zoning sites at higher densities than is required to accommodate the minimum existing regional housing need allocation for the current housing element cycle. (E) Adoption of accessory dwelling unit ordinances or other mechanisms that reduce barriers for property owners to create accessory dwelling units beyond the requirements outlined in Section 65852.2, as determined by the department. (F) Reduction of permit processing time.
(G) Creation of objective development standards.
(H) Reduction of development impact fees.
(I) Establishment of a Workforce Housing Opportunity Zone, as defined in Section 65620, or a housing sustainability district, as defined in Section 66200.
Per Section 65589.9. of the California Government Code:
(a) It is the intent of the Legislature to create incentives for jurisdictions that are compliant with housing element requirements and have enacted prohousing local policies. It is the intent of the Legislature that these incentives be in the form of additional points or other preference in the scoring of competitive housing and infrastructure programs. It is the intent of the Legislature that, in adopting regulations related to prohousing local policy criteria, the department shall create criteria that consider the needs of rural, suburban, and urban jurisdictions and how those criteria may differ in those areas. (b) For award cycles commenced after July 1, 2021, jurisdictions that have adopted a housing element that has been found by the department to be in substantial compliance with the requirements of this article pursuant to Section 65585, and that have been designated prohousing pursuant to subdivision (c) based upon their adoption of prohousing local policies, shall be awarded additional points or preference in the scoring of program applications for the following programs:
(1) The Affordable Housing and Sustainable Communities Program established by Part 1 (commencing with Section 75200) of Division 44 of the Public Resources Code. (2) The Transformative Climate Communities Program established by Part 4 (commencing with Section 75240) of Division 44 of the Public Resources Code. (3) The Infill Incentive Grant Program of 2007 established by Section 53545.13 of the Health and Safety Code. (4) Additional bonus points may be awarded to other state programs when already allowable under state law.
Staff is developing a Prohousing Designation application to be submitted to the California Department of Housing and Community Development (HCD), and is seeking comments on the draft application and the City Council’s authorization to submit it to HCD.
Discussion
Program Application
The California Department of Housing and Community Development (HCD) began accepting Prohousing applications from all cities and counties on June 30, 2021. As of June 28, 2022, 13 jurisdictions have applied and only one (City of Sacramento) has been designated. Locally, three jurisdictions in the Bay Area have applied: San Mateo County (submitted March 7, 2022), City of El Cerrito (submitted May 18, 2022), and City of Oakland (submitted May 31, 2022). The status of all three Bay Area submittals is listed as “pending applicant revision.” There are four scoring categories to evaluate jurisdictions under the Prohousing Designation:
Category 1: Favorable Zoning and Land Us
Category 2: Acceleration of Housing Production Timelines Category 3: Reduction of Construction and Development Cost Category 4: Providing Financial Subsidies
An additional Category titled “Enhancement Factors” allows a jurisdiction to receive extra points for each qualifying Prohousing Policy. For example, Enhancement Factor Category 4 is for “Policies that go beyond state law requirements in reducing displacement of lower income households and conserving existing housing stock that is affordable to lower income households.” Each City policy that works to achieve the goals of Enhancement Factor Category 4 may receive an additional point. However, a policy may not be double counted: if a policy has received points under one category, it cannot receive points in another category.
In order to receive a Prohousing designation, a jurisdiction must receive a minimum of 30 points. Existing and proposed policies may receive points. Staff has done a preliminary assessment of existing policies and those proposed in the Draft 6th Cycle Housing Element. The attached Preliminary Prohousing Score Sheet details each of the categories eligible for points. Staff has calculated that the City of Emeryville is likely to receive 45 points under the four Prohousing categories. Staff has not yet done a full assessment of all policies that qualify for enhancement factors but is confident that the City qualifies for a minimum of eight Enhancement Factor points. The following table summarizes these calculations:
Category
Preliminary Prohousing Scoring Calculations
Points Possible
Eligible
1 Favorable Zoning and Land Use
16 15
2 Acceleration of Housing Production Timeframes
19 17
3 Reduction of Construction and Development Costs
11 6
4 Providing Financial Subsidies
12 7
Enhancement Factors
Each Prohousing Policy will receive extra points for enhancement factors in accordance with the chart below.
If multiple policies, multiple points.
9+
8+
TOTAL
30 Points Required for Prohousing Designation
67+
53+
Consistency with the Draft Housing Element
Applying for Prohousing Designation is the first step in implementing Program SS in the Draft Housing Element:
SS. Pro-Housing Designation. The City will seek a Prohousing Designation from the California Housing and Community Development Department for enacting favorable zoning and land use policies, policies to accelerate the production of housing, reduction of construction and development policies, and providing financial subsidies. The Prohousing designation will provide incentives, in the form of additional points or preferences, in the scoring of competitive applications for housing and infrastructure.
Implements Policies: H-1-1; H-1-2; H-3-1
Responsible department/review authority: Economic Development and Housing Division, Planning Division, Planning Commission, City Council Timeframe: Implement required policies (Short Term)
Funding source: General Fund
Policies H-1-1 and H-1-2 are tied to Goal H-1 (new housing development), and Policy H-3-1 is tied to Goal H-3 (housing needs):
Policy H-1-1. Provide monetary and regulatory incentives for residential projects constructed specifically for lower- and moderate-income households.
Policy H-1-2. Explore innovative and creative housing options that provide greater flexibility in development and/or use, facilitate affordability, and meet the housing needs of all residents in the City.
Policy H-3-1. Utilize available federal, state, and local financing sources and subsidies to assist in making housing more affordable to very low-, low-, and moderate-income households Timeline
On May 17, 2022 City staff met with HCD staff to review and discuss Prohousing policy and the City’s application. The meeting helped City staff clarify submittal requirements and the intent of Prohousing application language; and provided HCD staff with a better understanding of Emeryville’s zoning and policies.
The Planning Commission reviewed the Prohousing Designation Program at their July 28, 2022 meeting. In its review of the application, the Commission asked why the City would not seek to obtain more points to achieve the Prohousing Designation. Staff clarified that, while over 67 possible points are available, only 30 are required in order to be designated as a Prohousing jurisdiction, and there are no benefits to seeking more than the 53 potential points that staff assesses may be reasonably obtained. The Planning Commission unanimously adopted a motion recommending that the City Council authorize staff to submit a Prohousing application to the State.
The Housing Committee reviewed the Prohousing Designation Program at their August 3, 2022 meeting, and voted unanimously to recommend that the City Council approve a resolution to authorize staff to submit a Prohousing application to the State.
Staff aims to complete all required documentation and submit the application to HCD before the end of the year. Following submittal of the application, HCD has 60 days to provide comments. Application approval and designation as a Prohousing jurisdiction is dependent on the number of comments received and subsequent turn-around time from both the City and State. It took the City of Sacramento, the only jurisdiction designated as Prohousing to date, approximately six months to receive approval.
Fiscal Impact
There is no fiscal impact to apply to the Prohousing Designation Program. Should the City be designated as a Prohousing jurisdiction, the City will be awarded additional points or preference in the scoring of program applications, which may result in receiving funds from the Affordable Housing and Sustainable Communities Program, the Transformative Climate Communities Program, the Infill Incentive Grant Program, and other eligible State programs.
Staff Communication with the Public
There have been no staff communications with the public regarding the Prohousing Designation Program application outside of the public meetings discussed in this report.
Conflict of Interest
None.
Conclusion
Staff is developing a Prohousing Designation application for HCD which it aims to submit before the end of the year. Staff is seeking comments on the draft application and the City Council’s authorization to submit the application to HCD by approving the attached resolution. Applying for the Prohousing Designation is the first step to implementing Program SS in the Draft Housing Element, and a Prohousing Designation may result in the City receiving funds from various State programs related to housing, transportation, and infrastructure.
PREPARED BY: Navarre Oaks, Associate Planner
Approved and Forwarded to the
City Council of the City of Emeryville:
Adam Politzer, Interim City Manager
Attachments
Attachment 1 – Preliminary Prohousing Score Sheet
Resolution
Authorizing Prohousing Designation Application
City Council Meeting | September 6, 2022
City of Emeryville
CALIFORNIA
MEMORANDUM