Agenda packet — Escondido City Council, March 22, 2023 (part 2 of 6)

184
Item17.

Contents
Executive Summary ....................................................................................................................................... 2 HOME-ARP Background and Program Overview ...................................................................................... 2 Qualified Populations: ............................................................................................................................... 2 Eligible Activities: ...................................................................................................................................... 2 Housing and Homelessness Needs Assessment ........................................................................................... 3 Federal Data .............................................................................................................................................. 3 State Data.................................................................................................................................................. 3 Local Data .................................................................................................................................................. 4 City’s Gaps Analysis ................................................................................................................................... 5 Homeless Needs Inventory and Gap Analysis Table ............................................................................. 5 Housing Needs Inventory and Gap Analysis Table ................................................................................ 5 Qualifying Populations Sizes and Demographic Compositions ................................................................. 6 Qualified Populations Overview ........................................................................................................... 6 Qualified Populations by Category ....................................................................................................... 6 Community Outreach .................................................................................................................................... 8 Stakeholder Consultations ........................................................................................................................ 9 Focus Group Meeting .............................................................................................................................. 15 Overall summary of feedback received .................................................................................................. 16 Public Participation ..................................................................................................................................... 18 Dates and Details .................................................................................................................................... 18 Public Participation Process: ................................................................................................................... 18 Additional Research Determining the Level of Need and Inventory Gaps ................................................. 18 HOME-ARP Activities Allocation Determination ......................................................................................... 22 HOME-ARP Funding Distribution Table .................................................................................................. 23 Project Solicitation and Selection ........................................................................................................... 23 HOME-ARP Production Housing Goals.................................................................................................... 24 Qualified Populations Preferences ......................................................................................................... 24 Refinancing Guidelines............................................................................................................................ 25

Resolution No. 2023-32
Exhibit "A"

Page 2 of 26 ends

185
Item17.

Executive Summary

HOME Investment Partnerships Program – American Rescue Plan (HOME-ARP) HOME-ARP Background and Program Overview
The City of Escondido was awarded a one-time investment grant on September 20, 2021 called HOME- ARP in the amount of $2,262,839 million. This grant was a portion of the $5 billion initiative received by the United States’ Department of Housing and Urban Development (HUD) as part of the American Rescue Plan to help communities across the country respond to the COVID-19 pandemic. States and local jurisdictions that qualify for an annual HOME Program in FY 2021 were eligible to receive HOME- ARP which is determined by a formula.

The purpose of this funding is to assist individuals or households who are experiencing homelessness, at risk of homelessness, and other vulnerable populations by developing new affordable rental housing, providing rental assistance, funding supportive services, or acquiring a non-congregate shelter to reduce homelessness and increase housing stability for residents in the City of Escondido. This presents a significant moment for our community to make a critical investment in housing and homelessness systems to prevent and end homelessness. HUD provided HOME-ARP grantees specific guidelines around who is eligible and what activities can be funded.

Qualified Populations:

1. Individuals experiencing homelessness

2. Households at-risk of homelessness

3. Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking or human trafficking

4. Other vulnerable populations:
a. Families requiring services or housing to prevent homelessness, those below 30% Area Median Income (AMI) and severely rent burdened, or those below 50% AMI and experiencing housing hardship.

5. Veterans and their families who meet the criteria stated above.

Eligible Activities:

1. Production or preservation of affordable housing

2. Tenant-based rental assistance

3. Supportive Services

4. Acquisition and development of non-congregate shelter

5. Nonprofit Operating and Capacity Building Assistance

6. Administration and Planning

This funding source is unique, because it provides jurisdictions with the flexibility to fund supportive services, non-congregate shelter and non-profit capacity that is traditionally not eligible under the Resolution No. 2023-32
Exhibit "A"

Page 3 of 26 ends

186
Item17.
regular HOME guidelines. Jurisdictions are not required to set aside funds for Community Housing Development Organizations commonly referred to as CHDOs. HUD increased regular administrative allocation from 10% to 15% to allow to for more comprehensive plan development.

Housing and Neighborhood Services staff was tasked with the development of this HOME-ARP allocation plan. To understand the need, City staff met with key stakeholders, reviewed numerous regional, state and local plans on homelessness, requested data from the Escondido Police Department on calls for service related to domestic violence and homelessness within the city, received data from the North County’s Family Justice Center One Safe Place on survivors of domestic violence, sexual assault and human trafficking, received client profile data from 2-1-1 San Diego on persons experiencing homelessness, at risk homelessness, domestic violence survivors and veterans calling from help from the city and reviewed housing and homelessness best practices. This plan provides a comprehensive summary of the information collected and provides recommendations on how to best utilize these funds.

The HOME-ARP will be released to community for a 30-day public comment period in accordance with the City of Escondido’s Citizen Participation Plan. The plan will be presented to City Council on March 22, 2023 and a final plan must be adopted and submitted to HUD by March 31, 2023. If a plan is not submitted to HUD by this deadline, then the City would lose its $2.26M HOME-ARP allocation.

Housing and Homelessness Needs Assessment

Federal Data

The 2022 ALL IN: Federal Strategic Plan to Prevent and End Homelessness released in December 2022 reports “after steady declines from 2010 to 2016, homelessness in America has been rising, and more individuals are experiencing it in unsheltered settings, such as encampments.” According to HUD, on any given night, more than half a million people sleep in shelters and unsheltered places not meant for human habitation, such as cars and encampments. The COVID-19 pandemic has further exacerbated this situation and this problem is most likely to get worse as rental relief ends and eviction moratoriums sunset. The federal plan is a blueprint for state and local government that outlines three core strategies to prevent and end homelessness: housing and supports, improve homelessness response for unsheltered individuals and prevention. All of these interventions are rooted in equity, data and collaboration. The plan aims to reduce homelessness nationwide by 25% by January 2025 and the federal government will release implementation plans that will identify specific actions, milestones, and metrics to achieve these goals. City staff will continue to monitor this information and incorporate this research into future planning.

State Data

The State of California continues to face a housing and homelessness crisis. Years of under production and exclusionary policies have resulted in a housing supply that is far behind the need. California Housing Partnership, a nonprofit organization, estimates we need to create 1.2 million new affordable homes (including 530,000 for extremely low-income households and 257,000 for very low-income Resolution No. 2023-32
Exhibit "A"

Page 4 of 26 ends

187
Item17.
households) in California by 2030. More recently, rising economic factors such as inflation, increased cost of living expenses, high mortgage interest rates, rising construction expenses, soaring home values, and increases in rents and slow wage growth have escalated this issue causing many families to not be able to afford homeownership, renters to be cost burdened and households falling into first-time homelessness. According to the State of California’s 2022 Point-in-Time, 145,854 households experience homelessness on a given night with 72% of population being unsheltered. The California Housing Partnership produced a 10-year comprehensive plan called the California Roadmap Home in March 2021 that focuses on four goals: create affordable homes, protect low-income renters, end homelessness and ensure racial equity.

Local Data

These crises and the economic factors are being felt at the local level. The South California Rental Association issued a survey in 2022 finding that the vacancy rates have dropped to a historically low rate of 1.8% for North County and San Diego County has the top five highest housing prices on the West Coast. The average rent for a 2-bedroom apartment in City of Escondido has risen almost $900 per month since the fall of 2020 to now and the median home value has risen to $699,000 in 2022 from $530,00 in 2020. The City’s Section 8 voucher waitlist grew by 700 households from 2021 and is now has 3,800 households on the waitlist. There are a lot of contributing factors to this problem, but one major issue is the City does not have enough housing units at all income levels to accommodate the need.

According to HCD’s Regional Housing Needs Allocation (RHNA) calculation the City needs to plan for the development of 9,607 total units by 2029. Currently, 78% of all of the City’s rental units are rented by low income household at or below 80% AMI (a third of the City’s total population). Nearly 60% of all renters or 13,719 households, are cost burdened paying more than 30% of their take home income toward housing costs.

The 2022 Point-in-Time Count showed 8,000 people experiencing homelessness in San Diego County with 499 people experiencing homelessness within the City of Escondido which is the fourth highest total in the region. Coupled with this, Escondido Police Department fielded 6,929 homeless calls for service in 2022 and over 1,600 students in the Escondido School District reported experiencing homelessness. The Regional Task Force on Homelessness recently issued a Regional Plan in September 2022 with the goal of ending veteran, youth, family homelessness and reducing the unsheltered homeless by 50% by 2025. As part of that initiative, North County needs to 150-230 emergency shelter beds, 718 permanent supportive housing units and 1,863 rapid re-housing vouchers in addition to the housing production goals. This plan provides more specifics on the City’s population, showing a lack in services and gaps in inventory.

Even as homelessness response systems are helping more people than ever exit homelessness, data from our local Continuum of Care (CoC) shows that for every 10 people who are housed, 13 new people enter into homelessness system of care for the first-time.

The City has funded an array of homeless services stemming from prevention and diversion, street outreach, emergency shelter (both congregate and non-congregate through the use of motel vouchers), domestic violence programs, rapid re-housing, permanent supportive housing and affordable housing.

Resolution No. 2023-32
Exhibit "A"

Page 5 of 26 ends

188
Item17.

The City currently has 49 emergency shelter beds at Haven House Emergency Shelter and 40 beds at the local domestic violence program. According to the Regional Task Force on Homelessness’ Housing Inventory Count (HIC), the City had 160 emergency shelter resources through traditional emergency shelter, domestic violence and motel vouchers for youth, adults and families in Escondido.

City’s Gaps Analysis

Homeless Needs Inventory and Gap Analysis Table

Homeless
Current Inventory Homeless Population Gap Analysis
Family Adults
Only Vets Family
HH (at
least
1 child)
Adult
HH
(w/o
child)
Vets Victims
of DV
Family Adults Only
# of
Beds
# of
Units
# of
Beds
# of
Units
# of
Beds
# of
Beds
# of
Units
# of
Beds
# of
Units
Emergency
Shelter 40 49 UNK
Transitional
Housing 40 95 UNK
Permanent
Supportive
Housing
UNK

263

UNK
Other
Permanent
Housing
47 53
Sheltered
Homeless
97 244 9 20
Unsheltered
Homeless
5 124 18 10
Current Gap 10 18 19 170

Housing Needs Inventory and Gap Analysis Table

Non-Homeless
Resolution No. 2023-32
Exhibit "A"

Page 6 of 26 ends

189
Item17.

Current
Inventory Level of Need Gap Analysis
# of Units # of Households # of Households
Total Number of Rental Units – All
Types 22,990
Total Number of Affordable Rental
Units 1,642
Rental Units Affordable to HH at 30%
AMI (At-Risk of Homelessness) 71
Rental Units Affordable to HH at 50%
AMI (Other Populations) 262
0%-30% AMI Renter HH w/ 1 or more
severe housing problems
(At-Risk of Homelessness)
6,265
30%-50% AMI Renter HH w/ 1 or more
severe housing problems
(Other Populations)
5,030
Current Gaps 11,295

Qualifying Populations Sizes and Demographic Compositions

Qualified Populations Overview

City staff requested data from San Diego County 2-1-1 which was able to compile Escondido-specific reports on households experiencing homelessness, at risk of homelessness, domestic violence survivors, and veterans. Additional information on homelessness and low-income residents was collected from the 2022 Point-in-Time Count in Escondido, County of San Diego Housing Choice Voucher data and HUD’s Comprehensive Housing Affordability Strategy (CHAS) Report.

Qualified Populations by Category

HUD has identified the following populations as eligible to receive HOME-ARP funding benefits:

1. People Experiencing Homelessness

The City of Escondido’s 2022 Point-in-Time Count showed 499 individuals experiencing homelessness (both sheltered and unsheltered). The data captured from the count reflects the minimum number of individuals experiencing homelessness on a single night in the Escondido. The City took a wider lens and requested data from 2-1-1 on callers living in the city of Escondido who were experiencing homelessness. The report captures client’s demographics, referrals, needs social determinants of health and geographic location. Out Resolution No. 2023-32
Exhibit "A"

Page 7 of 26 ends

190
Item17.
of the 9,315 unduplicated clients calling from the city, 23% or 2,128 callers identified being at-risk of homelessness and or experiencing homelessness.

Out of those 803 callers who reported experiencing homelessness, 77% were a single household earning less than 30% of the AMI. The gender was split, but was slightly higher for females (54%) than males (46%) with 82% of the population were between the ages of 20 -59. The racial and ethnic profile reported was 47% White, 26% Hispanic/Latino and 12% Black. Data showed half had a high school degree with 34% reporting they had some college or a post-bachelor’s degree education Most individuals were either unemployed (64%), disabled and under able to work (14%) or retired (5%). Most callers were seeking resources on housing, income support and employment, nutrition and mental health and substance use disorder treatment.

2. At Risk of Homelessness

The 2-1-1 San Diego Client Profile Report logged 1,325 client calls from people at risk of homelessness living in Escondido during the calendar year 2022. The data was split on between single and households with at least one child under the age of 18. The majority of callers were women (72%) ranging from 30-59 in age. The racial and ethnic profile reported was 42% White, 34% Hispanic/Latino and 12% Black. Eighty-five percent of households earned less than 30% AMI. Data showed that close to 40% had a school degree and 36% reported they had some college or a post-bachelor’s degree education Most individuals were either unemployed (41%), employed either full-time/part-time (36%) disabled and unable to work (16%) or retired (7%). The greatest need identified by callers was housing, rent payment or security deposit assistance. Other concerns were shared by seniors who were being priced of out the Escondido market and families who faced employment issues due to lack of childcare services.

3. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking

The 2-1-1 San Diego Client Profile Report had 115 clients who reported experiencing domestic violence living in Escondido in 2022. The Escondido Police Department responded to 588 calls for service during that same time period related to domestic violence. Ninety- two percent of all callers identified as women, who identified as Hispanic (42%) or White (34%). The majority of callers (98%) ranged from 20 – 59 years old and lived a 1-2 persons household. Most callers reported their income was less than 30% AMI. Smaller subpopulations captured in this data were fathers with children in need of shelter and large family sizes and households unable to stay at their residence because their abuser was the primary breadwinner. The greatest needs reported were housing, mental health and substance use treatment and legal services.

Resolution No. 2023-32
Exhibit "A"

Page 8 of 26 ends

191
Item17.

4. Other populations requiring services or housing assistance to prevent homelessness and other populations at greatest risk of housing instability

Greatest risk of housing instability

The County of San Diego Housing Choice Voucher Rental List, as of February 2023, 875 households in Escondido were assisted with a Section 8 Voucher. Two-thirds of the voucher recipients were administered to extremely low-income seniors or persons with disabilities.

This program is administered by County of San Diego’s Housing Authority and the number of vouchers issued decreased by 10% in 2022 from 981 vouchers to 875 in 2023, The waitlist grew by 21% in 2023 to 3,850 households are on the waitlist.

According to the data captured from HUD’s Comprehensive Housing Affordability Strategy (CHAS), the City of Escondido has a total of 47,100 household and 9,350 (19.8%) have an income at of less than 30% of the Area Median who are the greatest population at-risk of housing stability. Over forty percent of 0-30% households have at least one housing problem such as an incomplete kitchen facility or plumbing issues, overcrowding with more than one person in a room, and 60% of renters are cost burden paying more than 30% of their income to housing costs.

Veterans

2-1-1 San Diego logged 275 Veteran callers living in the city of Escondido during the calendar year of 2022. Most individuals were male (74%) living in a one to two-person households with no children. Sixty-four percent of callers were over the age of 50 and half of the Veterans were White and nearly a quarter were Black. Most clients (73%) earned a median household income of less than 30% and called for housing, nutrition/food and utility resources. Veterans experiencing homelessness made up less than 7% of all total callers.

Some Veteran group reported barriers with transportation, home health and case management. Additionally, dishonorably discharged Veterans and their families were not eligible to qualify for military services due to their discharge status.

Community Outreach

As part of the requirement to receive the HOME-ARP funds, the City was required by HUD to consult with a specific list of stakeholder groups in the development of the HOME-ARP Plan. The agencies that were identified were the Regional Taskforce on Homelessness, San Diego County’s Continuum of Care, homeless and domestic violence service providers, veterans groups, public housing agencies (PHAs), public agencies that address the needs of the qualifying populations, and public or private organizations that address fair housing, civil rights, and the needs of persons with disabilities.

The City conducted comprehensive outreach to local service producers, regional entities and key stakeholders to organizations to solicit feedback, identify gaps in the housing inventory and find out if Resolution No. 2023-32
Exhibit "A"

Page 9 of 26 ends

192
Item17.
there are gaps in the service delivery systems, determine if any sub population(s) are being severely underserved, categorize priority needs and discuss possible solutions. This feedback is a key factor in determine how to best utilize funding for eligible activities, projects, and programs.”

Stakeholder Consultations

This chart describes the agency and organization consulted, type of service they provide, method and date of contact and feedback received. These consultations were conducted over a three- month period that ranged from November 2022 to January 2023. City staff tried to engage local providers serving residents or contracted with the City of Escondido and regional organizations served by the County.

Agency/Org
Consulted
Type of
Agency/Org
Qualified
populations
Served
Method of
Consultation Feedback
SD County -
Department of
Homeless
Solutions and
Equitable
Communities
Homeless Service
Provider
Individuals and
families
experiencing
homelessness and
trauma

Ethnic, Immigrant
and Refugee
Groups

Zoom
Consultation

December 6, 2022
Qualified Populations:

Persons experiencing
homelessness

Subpopulations identified:

Seniors
Middle Age

Eligible Activity:

Non-congregate shelter
Tenant Based Rental Assistance
Supportive Services: childcare
and employment
Affordable Housing

Summary:

Need for Emergency non-
congregate shelter and tenant
based rental assistance. Lack of
recuperative beds in North
County. Short term stability then
transition to independence. Long
term, need more permanent
affordable units to free up beds
and subsides.

Seniors are getting priced out
(explore shared housing and
rental subsidy). Lack of childcare
and employment programs for
“Middle Age” people.

Resolution No. 2023-32
Exhibit "A"

Page 10 of 26 ends

193
Item17.

Legal Aid Fair Housing and Civil
Rights
Lower income and
at risk residents
particularly in
relation to housing
law, tenant rights,
and discrimination
based on race,
color, disability,
etc.

Zoom
Consultation

December 7, 2022
Qualified Populations:

At risk

Eligible Activity:

Supportive Services
Affordable Housing

Summary:

Short term, we need supportive
services, rental assistance (more
specifically flexible spending) for
prevention. Add language into
agreements and ordinances to
protect residents. Incorporate a
landlord relations program and
incentive. Long term, lack of
affordable housing options and
waitlists are too long.

Center for
Community
Solutions
Domestic Violence
Service and Sexual
Assault Provider
Adults and children
fleeing, or
attempting to flee,
domestic violence,
dating violence,
sexual assault
Zoom
Consultation

December 12,
2022
Qualified Populations:

Domestic Violence

Eligible Activity:

Supportive Services

Summary:

Rental assistance and supportive
services. More specially, flexible
funds (“one month away”), set
aside vouchers for DV, landlord
relations / incentive and
additional niche services that are
not thought of.

Community
Resource Center
Domestic Violence
Service Provider
Adults and children
fleeing, or
attempting to flee,
domestic violence,
dating violence,
sexual assault

Individuals and
families
experiencing
homelessness
Zoom
Consultation

December 12,
2022
Qualified Populations:

Persons experiencing
homelessness

Eligible Activity:

Affordable Housing with
Supportive Services
Shelter

Summary:

Need more housing with
supportive services and more
shelter beds. A space for
emergency placement then work
Resolution No. 2023-32
Exhibit "A"

Page 11 of 26 ends

194
Item17.
with counselor to get into
housing.

Interfaith
Community
Services
Homeless and
Housing Service
Provider
Individuals and
families
experiencing
homelessness

Households at-risk
of homelessness

Other populations
Zoom
Consultation

December 21,
2022
Qualified Populations:

Persons experiencing
homelessness

Subpopulation:

Families

Eligible Activity:

Supportive Services – housing
stability case manager
Family Shelter
Mixed income affordable
housing
PSH

Summary:

Need for a family shelter and
operational funding. Serving
Families with children is
important to avoid generation
trickledown. 2. Supportive
services – housing stability case
manager to support housed
families. 3. Other - Shallow
subsidy, landlord incentive, more
PSH, flexible funding, more
affordable units, mixed
population housing. Nowhere for
people to go.

National Core Affordable Housing
Developer
Other vulnerable
population:

Households who
are housing
instable, cost
burdened and at
risk of homeless

Extremely, very
and low-income
families and
individuals

Zoom
Consultation

December 22,
2022
Qualified Populations:

At Risk
Other vulnerable groups

Subpopulations identified:

Populations making above 80%
AMI

Eligible Activity:

Affordable Housing
Supportive Services

Summary:

Resolution No. 2023-32
Exhibit "A"

Page 12 of 26 ends

195
Item17.

People
experiencing
homeless.

Need for affordable units with
specific services tied to that
population. Financial program to
help empower people forward
and upward. Mechanism to place
people into ownership and free
up affordable units.

Regional Task
Force on
Homelessness
San Diego County’s
Continuum of Care
Individuals and
families
experiencing
homelessness

Households at-risk
of homelessness

Other populations
Zoom
Consultation

December 28,
2022
Qualified Populations:

Persons experiencing
homelessness

Subpopulations identified:

Family
Seniors

Eligible Activity:

Affordable Housing with
supportive services

Summary:

PSH with tailored services and
individualized supportive
services such as tapering subsidy.

Lack of recuperative care units.

Veteran Village of
San Diego
Veteran Service
Provider
Veterans and their
families who meet
the eligible criteria
Zoom
Consultation

January 4, 2023
Qualified Populations:

Veterans

Subpopulations identified:

Senior Veterans
Dishonorably discharged

Eligible Activity:

Affordable Housing
Supportive Services

Summary:

There is a shortage of rental
housing units and shelter beds
within North County. Need to
leverage vacant land to build
more. There is a need for
services that help people
navigate housing such as:
financial assistance, light case
management, and
tenant/landlord relations.

Resolution No. 2023-32
Exhibit "A"

Page 13 of 26 ends

196
Item17.

One Safe Place Domestic Violence
Service Provider
Adults and children
fleeing, or
attempting to flee,
domestic violence,
dating violence,
sexual assault

As well as victims
of a hate crime,
elder abuse,
human trafficking,
violent loss, other
abuse or
victimization
Zoom
Consultation

January 5, 2023
Qualified Populations:

Domestic Violence, Sexual
Assault and Human Trafficking

Subpopulations identified:

Families

Eligible Activity:

Affordable Housing
Supportive Services

Summary:

Lack of affordable units, shelter
beds and transitional housing.

Stepping stones that help house
people. Need for diversion
assistance when an income
earning abuser is removed from
household. Services and units for
victims that might not meet
victimization timeline periods.

Shared data on DV and
trafficking.

San Diego County
Housing and
Community
Development
Services
Department
Public Housing
Authority
Households at-risk

Lower income
families,
individuals, elderly
and disabled
persons
Email
Consultation

February 10, 2023
Qualified Populations:

Persons experiencing
homelessness
At risk of homelessness

Subpopulations identified:

Seniors
Disabled
Extremely low-income

Eligible Activity:

None identified

Summary:

The city asked for housing
voucher data from 2022 and
2023. This contained population
breakdowns, total number of
vouchers the city receives and
waitlist information.

Resolution No. 2023-32
Exhibit "A"

Page 14 of 26 ends

197
Item17.

San Diego Regional
Center (SDRC) –
North County
Office

Development Services
Provider
Persons with
developmental
disabilities
Phone
Consultation

February 16, 2023

Zoom follow up

March 1, 2023
Qualified Populations:

At Risk
Other vulnerable groups

Subpopulations identified:

Individuals at 0-30% AMI
Undocumented Families
Elderly population with an I/DD
diagnosis
All individuals whom are non-
ambulatory

Eligible Activity:

Affordable Housing
Supportive Services

Summary:

Lack of affordable units. More
specifically, smaller unit types
that are ADA compliant and close
to transit. More emergency beds
for evicted tenants in North
County. Job placement and
employment opportunities are a
need for adults and key to
sustained success.

Transportation to and from jobs,
school and programs is a need as
well. Access to metal health can
be a barrier since some disabling
conditions might not be viewed
as a psychiatric issue making
them ineligible for some
homeless services and access to
funding.

Alabaster Jar
Project
Human Trafficking
Service and Housing
Provider

Survivors of human
trafficking and
sexual exploitation
Email Consolation

February 23, 2023

Zoom Follow Up

March 7, 2023
Qualified Populations:

Homeless
Sex and Labor Trafficking

Subpopulations identified:

Minors, teenagers and young
adults

Eligible Activity:

Affordable Housing
Rental Assistance
Resolution No. 2023-32
Exhibit "A"

Page 15 of 26 ends

198
Item17.

Non congregate shelter
Supportive Services

Summary:

Housing is important but it is
crucial to serve the under
lying symptoms to prevent
people from falling back into
homeless. There is a lack of in
patent beds and mental
health treatment. The is a lack
of shelter beds, transitional
options and rental assistance
that help bridge people into
long term housing. Need for
landlord relations to find
places that will rent to
organizations and
clients. Teaching life and job
skills are a critical piece to
help vulnerable population
become self-sufficient.

Unicorn Homes Civil Rights and
Diversity Service
Provider
LGBTQ Housing
and Resource
Center
Email Consolation

February 23, 2023

Pending answers to Q & A
survey.

Focus Group Meeting

In addition to the individualized consultations, the City hosted an in-person focus group on October 18, 2022 with 11 people from 5 different service providers. The following organizations were in attendance:

YMCA (youth and homeless service provider), Neighborhood Healthcare (federally qualified health center), Interfaith (homeless and housing service provider), Turn BHS (mental health and supportive housing) and Escondido Education Compact (youth development and family intervention). During the meeting, a survey was administered asking the group to rank the and most needed activity. The group ranked the eligible activities in the following order from highest to low priority: rental housing, supportive services, rental assistance, and the non-congregate shelter. The groups were also asked to prioritize populations in terms of need and here are the results: 31% of the vote was for homeless, followed by 28% for at-risk, then 21% for domestic violence, and lastly 20% for other. Afterward, staff brought participants into a small group were additional follow-up questions were asked such as: which activity should be our highest priority, are there any specific sub population that are being under served, is anyone working on a program that would fit the eligible activities list, and what are the gaps in the types of affordable housing. Afterward, the group reconvened and a large group conversation was Resolution No. 2023-32
Exhibit "A"

Page 16 of 26 ends

199
Item17.
facilitated amongst the organizations to gather a more in-depth understanding of the current landscape and the missing gaps.

Overall summary of feedback received:

To ensure broad input into the HOME-ARP Allocation Plan, the City engaged over 12 different types of local and regional organizations to solicit feedback and discuss gaps in the housing and homelessness service delivery systems. This feedback was consolidated into two categories:

Qualified Populations

1. Individuals experiencing homelessness

People experiencing homelessness are the most vulnerable group and have the highest barriers to find housing. Many providers expressed the need for more emergency shelter, recuperative care beds and permanent supportive housing for families and seniors. They also suggested flexible funds, landlord incentives and a housing stability case manager to help persons remained housed after placement.

2. Households at-risk of homelessness

Service providers requested the need for supportive services, rental assistance and flexible funds to stabilize a person’s housing and create a landlord incentive program. They recommended strengthening agreements and ordinances to protect residents. The need for more affordable housing units tied to certain eligible populations. A few providers expressed the need for incentive programs to help people exit the system to free up affordable units and allow for homeownership.

3. Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking or human trafficking

The City spoke with numerous domestic violence, sexual assault and human trafficked providers in North County who expressed the need for supportive services like housing navigation who will address landlord/tenant needs, affordable housing and emergency shelter. Data released from North County Family Justice Center, One Safe Place, in July 2022 reported the shelters available for domestic violence and human trafficked survivors were not sufficient in San Diego County. The committee recommended using grant funding for a short-term, hotel programs. According to service providers, domestic violence survivors are at risk of losing their housing when the abuser’s income is removed from the home and the family still needs to pay rent.

4. Other vulnerable populations

Resolution No. 2023-32
Exhibit "A"

Page 17 of 26 ends

200
Item17.

Increases in cost of living and housing prices for extremely low and very low-income households makes fair market units unattainable. Market rate housing further cost burdens households and escalate the threat of people losing their housing and becoming homeless.

5. Veterans and their families who meet the criteria stated above.

Veteran providers expressed the need for affordable rentals, shelter beds and a housing navigator who provides financial assistance, case management and landlord/tenant relations. Veterans seniors need additional supportive services for activities of daily living needs, metal health issue and income.

Eligible Activities

1. Housing:
• There is a lack of enough affordable rental units
• Waitlists for vouchers and affordable rental units are too long • Need for PSH and supportive housing for people with disabilities • Increases in cost of living and housing prices makes fair market units unattainable, further cost burdens households, and escalate the threat of people losing their housing
• Not enough shelter beds and temporary living units for people seeking immediate help

2. Supportive services:
• Land lord relations
i. Very competitive market and need an incentive to help low income families stand out
ii. Tenant income verification and high deposit requirements. In some cases, tenants need 3 times rents.
• Flexible spending fund that can be individually tailored to meet needs • Rental assistance, financial coaching and housing navigation with a focus on placement and securing housing
• Pilot program to fill niche gaps in services
• Childcare, workforce, education, trainings, job placement • Light case management to keep people on the right track toward independence and upward mobility
• Outpatient health services and substance abuse treatment services

Many service providers expressed the immediate need for supportive services to help people find housing and remain housed as well as the planning long term to build more units. Increasing the number of affordable units will create upward mobility opportunities to lift people up through the housing ecosystem and as a result it will free up those beds and subsides slots for the next level. Community involved and buy in is crucial because the homelessness and affordable housing supply issues we face Resolution No. 2023-32
Exhibit "A"

Page 18 of 26 ends

201
Item17.
won’t change without a long-term commitment from and collaborative partnerships amongst the public- and private-sector stakeholders.

Public Participation

In accordance with HUD, cities must provide for and encourage citizen participation in the development of the HOME-ARP allocation plan. Before submission of the plan, cities must provide residents with at least a 15-day notice to comment on the proposed HOME-ARP allocation plan. In alignment with the Citizen Participation Plan there will be a 30-day public comment period. The City of Escondido must follow its adopted requirements in its current citizen participation plan. The amount of HOME-ARP funding and recommended activities must be made available to the public. In addition, cities must hold at least one public hearing during the development of the HOME-ARP allocation plan and prior to submission.

This plan is available for the public review and comment period from February 16, to March 17, 2023 on the City’s website at https://www.escondido.org/housing-and-neighborhood-services or the Housing and Neighborhood Services Division at Escondido City Hall at 201 N. Broadway, Escondido. Further information may be obtained by contacting Eric Bunge at 760-839-4562 or [email protected] in the Housing and Neighborhood Services Division.

Dates and Details

• Date of public notice: 2/16/2023
• Public comment period: 2/16/2023 – 3/22/2023
• Date of public hearing: 3/22/2023

Public Participation Process:

This information is pending and will be updated at the end of the public comment period.

Additional Research Determining the Level of Need and Inventory Gaps

In addition to the community outreach, this allocation plan was compiled using data from a variety of sources to gather a very comprehensive outlook of the City’s current housing and population make up.

This included data pulled from:

• 211 Client Profile Report for Escondido
• Regional Task Force on Homelessness (RTFH) Regional Community Action Plan • HUD "CHAS" (Comprehensive Housing Affordability Strategy) data for Escondido • 2022 California Housing Partnership Report
• California Homeless Housing Needs Assessment
• Continuum of Care Housing Inventory Count
Resolution No. 2023-32
Exhibit "A"

Page 19 of 26 ends

202
Item17.
• Local and regional Point in Time Count reports
• Domestic Violence Counts Report and Shelter Stats
• San Diego County’s HOME ARP plan
• Housing Affordability Interactive Dashboard for San Diego County • City’s Housing Element and fair market housing real estate report • ALL IN: The Federal Strategic Plan to Prevent and End Homelessness December 2022 • California’s Roadmap Home 2023 plan
• Escondido Police Department 2022 call logs
• South California rental Housing Association’s 2022 San Diego Region vacancy survey

The City combined this data, gathered from the sources listed above, with its own housing inventory research initiative that compared affordable housing versus fair market housing, categorized the types of units, bedroom sizes and pinpointed the number of units at specific AMI thresholds at 0-30%, 50%, 60%, and 80% AMI. Through this, five key areas where identified:

Key findings affecting the qualified populations:

1. Lack of 0-30% AMI Units
• Only 8% (67 units) of the 1,200 deed restricted affordable units within the City cater to households at 0-30% AMI.
• 7,250 of the city’s 22,990 renters are household at or below 30% AMI • The CA Homeless Housing Needs Assessment identified the need for 1,000,000 units statewide for people at 0-30% AMI
• 20% of the City’s total RHNA production goals needs to target units for very low income. • Regional Task Force needs assessment identified that the North County region needs 798 units low income housing units to serve homeless households. • CA Housing Partnership 2022 Report stated that no renters at 30% AMI can afford the average asking price for rents in ANY of the state’s 58 counties. o Households need to be at 100% AMI needed to rent a bedroom unit in San Diego. San Diego is in the top 5 highest housing prices on the West Coast. • The 2022 ALL IN: Federal Strategic Plan to Prevent and End Homelessness stated that nationally, there are only 37 affordable and available rental homes for every 100 extremely low-income renters.
o In no state can a person working full-time at the federal minimum wage afford a two-bedroom apartment at the fair market rent.
• The Housing Affordability Interactive Dashboard provides data on housing conditions and costs, households and their housing needs, and housing production:
o An affordable rent range for San Diego County for a household at 30% AMI is $713. In comparison, the average studio fair market rent is $1,478 for a studio and $2,124 for a 2-bedroom unit.
• Supplemental Security Income (SSI) for 2023 is only $1,133 per month in California.

Assuming only 30% of take home income is being used, this would result in about $340 per month for housing related costs.

Resolution No. 2023-32
Exhibit "A"

Page 20 of 26 ends

203
Item17.

2. Need for more Permanent Supportive Housing (PSH)
• The City has 263 PSH units which 79 are family and 640 are single units • The CA Homeless Housing Needs Assessment stated that over a 12-year period, 26% of all the CA households that will experience homelessness will need supportive housing. o San Diego County will need 4,442 individual PHS units and 273 family PHS units at a region by 2035.
• RTFH Regional Community Action Plan states that North County is currently short 718 total PSH units
o 79 family PHS units and 640 single adult PSH units are need • The 2022 ALL IN: Federal Strategic Plan to Prevent and End Homelessness echoes this need by stating that, “…services are not effective without housing, but housing is not sustainable without services. The fundamental solution to homelessness is housing … When a person is housed, they have a platform to address all their needs, no matter how complex. People are most successful when that housing is paired with the right level of voluntary and accessible support based on their expressed and individualized needs and preferences.”

3. Potential subpopulations most at risk:
• Individual versus family household needs
o RTFH Regional Community Action Plan states that take a region we need 10 times are many Single Adult low-income units.
• 731 single units in comparison to only 67 family units. • Only 3% (49 units) of the City’s affordable rental units at studios. o 211 Client Profile Report for Escondido:
• Logged 9,315 client calls from people in the Qualified Populations • 42% of clients were one-person households, 19% were a two- person household and 56% of the total were without children. o According the 2022 ALL IN: Federal Strategic Plan to Prevent and End Homelessness:
• While more people experiencing homelessness overall live in sheltered locations, according to the 2022 Point-in-Time Count, for only the second time since HUD started collecting this data, people who experience homelessness as individuals (versus families) are more likely to live in unsheltered locations.
• Re-entry population:
o Sometimes program design and federal requirements limits the re-entry population’s ability to access critical affordable housing and supportive services needed for successful reintegration to society.
• Additionally, many landlords do not accept tenants with a history of incarceration which creates further barriers

• According the 2022 ALL IN: Federal Strategic Plan to Prevent and End Homelessness:
o Veteran women are more than twice as likely as non-veteran women to experience homelessness.

Resolution No. 2023-32
Exhibit "A"

Page 21 of 26 ends

204
Item17.
o Foster Youth:
• In a given year, almost 20,000 foster your age of care nationally • Between 31%-46% of youth exit foster case and experience homelessness by the age of 26.
• During the 2022 Point in Time count there were 36 youth that were unsheltered in the city.
o This is not only a housing crisis but it is a health crisis as well:
• Housing is a social determinant of health:
• Nationally, tens of thousands of people die every year due to the dangerous condition of living without stable housing • In fact, people who experience homelessness die nearly 30 year earlier than the average American.
• Access is an issue for all:
• The number of people living in unsheltered locations is rising, yet there are often not enough safe, low-barrier shelter or interim housing options for people waiting for permanent housing and support.

4. Renters in the City of Escondido:
• According to the HUD "CHAS" data for Escondido, there is a total of 47,100 households in the city of Escondido. 52% of those are home owners and 48% are renters. • 78% of all rental units (17,862 households), affordable and fair market, are rented by low income household at or below 80%.
o That is about 1/3 of the City’s total population.
▪ The average household size in Escondido is just over 3 people. o And only 8% of the total number of rental units within the city are deed restricted affordable units for families at or below 80% AMI. • 66% of all renters have 1 housing problem
• 59.6% of all renters (13,719 households) are cost burdened paying 30% or more of their take home income toward housing costs.
o 52% (7,249 of the 13,719 household) are severely cost burdened paying more that 50% of their income toward housing costs.
o This leads to often choosing between paying for housing, nutritious food, reliable transportation or healthcare needs.
• Turnover rates are very low
o According to the 2014-2018 ACS (most recent time period calculated), the overall vacancy rated in Escondido were very low:
▪ ownership housing had a vacancy rate of 1% while the rental vacancy rate was 4%.
▪ More recently, the 2022 survey conducted by the Southern California Rental Association stating that vacancy rates have fallen to 3.3% for Escondido and 1.8% for North County.
o Even though turnover rates are low, eviction can have a serious consequences in terms of being unhoused:

Resolution No. 2023-32
Exhibit "A"

Page 22 of 26 ends

205
Item17.
▪ Nearly a million households are excited annually according the 2022 ALL IN: Federal Strategic Plan to Prevent and End Homelessness and 30% of those are California households.
• A study was study was conducted in Seattle which revealed that

37.5% of evicted households end up living on the street. • The Housing Affordability Interactive Dashboard provides data on housing conditions and costs, households and their housing needs, and housing production:
o This showed that in San Diego County:
▪ The average studio fair market rent is $1,478 for a studio and $2,124 for a 2-bedroom unit.
▪ The average fulltime worker can only afford to pay $1,142 and anything over that would mean paying more than 30% of their income toward housing costs and would lead them to become cost burdened. o This was echoed by the 2022 survey conducted by the Southern California Rental Association stating at the average rent for a 2 bedroom is $2,105 which is an increase from $1,225 in 2020.

HOME-ARP Activities Allocation Determination

Based on the feedback received and data collected, City staff is recommending that the HOME-ARP grant is used to create affordable units and supportive services.

City staff recommends to allocate $1,500,000 of the HOME-ARP grant for the proposes of creating 15 affordable rental housing units for extremely low-income (0-30% AMI) households with a preference for those experiencing homelessness. The need for affordable housing not only effects the qualified populations, but also adding additional units will have an economic trickledown effect helping the city as a whole and alleviating constraints on the current shelter and service systems. The development of new affordable units is also in alignment with the City’s Consolidated Plan, City’s Housing Element, State housing production goals, County’s HOME-ARP allocation, California’s Roadmap Home 2030 plan and the federal All-In and Housing Supply Action Plans.

In addition, the City recommends that $423,414 fund supportive services with an emphasis on placing people into housing, landlord incentives and helping people remain housed. The Supportive services will adhere to the eligible uses as defined in CPD Notice: Requirements for the Use of Funds in the HOME- American Rescue Plan Program. Depending on the level of assistance needed, this amount could help house at least another 60 households as part of this initiative. These funds will be flexible in nature and can be individually tailored to effectively meet the need(s) of that household.

The remaining $339,000, not to exceed the 15% statutory administration limit, is recommended to be used to hire a Housing Navigator to assist with program design, coordinating and implementing the supportive services, administering the funding and facilitating compliance. This position would be termed and structured to assist Escondido residents. Both of these determinations were in response to Resolution No. 2023-32
Exhibit "A"

Page 23 of 26 ends

206
Item17.
the community’s feedback stressing the need for land lord relations, rental and financial assistance, light case management to keep people on the right track toward independence, high deposit requirements, help finding the appropriate unit and coaching to help mobilize people upward. This is also in alignment with the HCD’s HOME-ARP allocation with at least 65% of their support services funding going toward financial assistance and services that will help these populations access, enter, and maintain secure housing in affordable housing units.

A wide variety of needs were identified through the outreach efforts to help prevent and end homelessness. The City has heard the need for additional services and understands the urgency to address issues so it is gearing up to allocate $1.3 million through CDBG-CV in other funding above and beyond HOME-ARP to address the short term needs for rental assistance. All together this would be a localized flexible housing fund to effectively coordinate rental subsidies and housing placements and to provide support for tenants and landlords. This is in alignment with the 2022 ALL IN Federal plan that suggests that, “universal strategies should be broadly aimed at reducing the risk of housing instability and homelessness “upstream” and before an individual requires assistance from the homelessness response system.” In addition, the City will look to leverage other City grant funding to build more units, regional funding to house more people and identify other funding sources that can provide supportive services to continue to serve those in need.

The City carefully cross referenced the quantitative data with the qualitative feedback gathered from the community to derive to these conclusions. Funding both rental housing and supportive services was a holistic approach that was geared to balance addressing short term needs with building long term infrastructure.

HOME-ARP Funding Distribution Table

The proposed breakdown is as follows:

Funding Amount Percent of the
Grant
Statutory
Limit
Supportive Services $ 423,414
Acquisition and Development of Non-
Congregate Shelters $ 0
Tenant Based Rental Assistance (TBRA) $ 0
Development of Affordable Rental Housing $ 1,500,000
Non-Profit Operating $ 0 0 % 5%
Non-Profit Capacity Building $ 0 0 % 5%
Administration and Planning $ 339,425 15% 15%
Total HOME ARP Allocation $ 2,262,839

Project Solicitation and Selection

Resolution No. 2023-32
Exhibit "A"

Page 24 of 26 ends

207
Item17.

The City will be selecting a HOME-ARP rental project through a Notice of Funding Availability (NOFA) or Request for Proposal (RFP) process. City staff will solicit bids from eligible developers who are capable of carrying out the development of affordable housing. All project proposals will be evaluated based upon financial capacity, adherence to the HOME-ARP guidelines, and alignment with the needs outlined in this plan. Bonus scores will be given to applicants who align closest with the City’s qualified population.

Preference information is listed below. The HOME-ARP funding is meant to be gap financing to subsidized the development of the HOME-ARP units and projects are encouraged to use other capital to fund the development of the structure. The City’s involvement with this activity will be limited to program planning, administration and monitoring.

The City will directly administer the supportive services activity through the hiring of a Housing Navigator position. This person will serve on staff and help all qualified populations connect to community resources, locate and retain affordable housing. This person will have access to discretionary, flex funds to help people with their housing needs.

No administrative funds have been contracted to a subrecipient prior to HUD’s acceptance of the HOME-APR allocation plan. After acceptance of the plan and receipt of funding, a portion of the administration budget may be used for the hiring of consultants to assist with the project selection process.

No funding in being planned for non-profit operating assistance and capacity building even though there is a statutory limit of up to 5% for each.

HOME-ARP Production Housing Goals

The City expects to produce at least 15 permanent affordable rental housing units with the HOME-ARP allocation. Other funding sources will be required by the developer since the $1.5M HOME-ARP rental housing allocation is intended to provide gap financing for the designated HOME-ARP units. This can include, but is not limited to, Low-income Tax Credits programs, project-based vouchers, the County of San Diego program’s No Place Like Home, ARPA, Housing trust funds, etc. The 15 HOME-ARP units will be capped at 30% of the household’s income to protect households from being cost burden. The City is looking to leverage other grant funds with the goal of developing another 25 units resulting in a total of 40 new units.

Qualified Populations Preferences

Rental Housing
For the HOME-ARP assisted rental units, a preference will be given to individuals and families experiencing homelessness and are Escondido residents. All qualifying populations are encouraged to apply for the project specific waiting list, but households who are experiencing homeless will be given priority and first access. The data shows that there are gaps in the City’s housing inventory, community conveyed there is not enough ample services catering to this specified population leading it to be the Resolution No. 2023-32
Exhibit "A"

Page 25 of 26 ends

208
Item17.
most vulnerable, and statistically these individuals are facing the highest barrier to continued housing.

Preferences will not be applied to any specific subpopulations.

Supportive Services
No preferences will be placed on receiving assistance from the Housing Navigator or supportive services funding. These resources can be accessed by all of the qualified populations. These services will be prioritized to serve residents of Escondido and can be utilized by HOME-ARP rental tenants.

Refinancing Guidelines

The City does not intend to use HOME-ARP funds to refinance existing debt.

Resolution No. 2023-32
Exhibit "A"

Page 26 of 26 ends

209
Item17.
https://th.bing.com/th/id/OIP.W7ubN_7GPV9wSEewzycK4AHaDx?pid=ImgDet&rs=1

HOME-ARP ALLOCATION PLAN
City of Escondido
Housing and Neighborhood Services
March 9th, 2023 (draft 2)
Attachment "1"
210
Item17.

1 Contents
Executive Summary ....................................................................................................................................... 2 HOME-ARP Background and Program Overview ...................................................................................... 2 Qualified Populations: ............................................................................................................................... 2 Eligible Activities: ...................................................................................................................................... 2 Housing and Homelessness Needs Assessment ........................................................................................... 3 Federal Data .............................................................................................................................................. 3 State Data.................................................................................................................................................. 3 Local Data .................................................................................................................................................. 4 City’s Gaps Analysis ................................................................................................................................... 5 Homeless Needs Inventory and Gap Analysis Table ............................................................................. 5 Housing Needs Inventory and Gap Analysis Table ................................................................................ 5 Qualifying Populations Sizes and Demographic Compositions ................................................................. 6 Qualified Populations Overview ........................................................................................................... 6 Qualified Populations by Category ....................................................................................................... 6 Community Outreach .................................................................................................................................... 8 Stakeholder Consultations ........................................................................................................................ 9 Focus Group Meeting .............................................................................................................................. 15 Overall summary of feedback received .................................................................................................. 16 Public Participation ..................................................................................................................................... 18 Dates and Details .................................................................................................................................... 18 Public Participation Process: ................................................................................................................... 18 Additional Research Determining the Level of Need and Inventory Gaps ................................................. 18 HOME-ARP Activities Allocation Determination ......................................................................................... 22 HOME-ARP Funding Distribution Table .................................................................................................. 23 Project Solicitation and Selection ........................................................................................................... 23 HOME-ARP Production Housing Goals.................................................................................................... 24 Qualified Populations Preferences ......................................................................................................... 24 Refinancing Guidelines............................................................................................................................ 25

Attachment "1"
211
Item17.

2 Executive Summary

Qualified Populations:

1. Individuals experiencing homelessness

2. Households at-risk of homelessness

3. Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking or human trafficking

5. Veterans and their families who meet the criteria stated above.

Eligible Activities:

1. Production or preservation of affordable housing

2. Tenant-based rental assistance

3. Supportive Services

4. Acquisition and development of non-congregate shelter

5. Nonprofit Operating and Capacity Building Assistance

6. Administration and Planning

3 regular HOME guidelines. Jurisdictions are not required to set aside funds for Community Housing Development Organizations commonly referred to as CHDOs. HUD increased regular administrative allocation from 10% to 15% to allow to for more comprehensive plan development.

Housing and Homelessness Needs Assessment

Federal Data

State Data

4 households) in California by 2030. More recently, rising economic factors such as inflation, increased cost of living expenses, high mortgage interest rates, rising construction expenses, soaring home values, and increases in rents and slow wage growth have escalated this issue causing many families to not be able to afford homeownership, renters to be cost burdened and households falling into first-time homelessness. According to the State of California’s 2022 Point-in-Time, 145,854 households experience homelessness on a given night with 72% of population being unsheltered. The California Housing Partnership produced a 10-year comprehensive plan called the California Roadmap Home in March 2021 that focuses on four goals: create affordable homes, protect low-income renters, end homelessness and ensure racial equity.

Local Data

Attachment "1"
214
Item17.

5 The City currently has 49 emergency shelter beds at Haven House Emergency Shelter and 40 beds at the local domestic violence program. According to the Regional Task Force on Homelessness’ Housing Inventory Count (HIC), the City had 160 emergency shelter resources through traditional emergency shelter, domestic violence and motel vouchers for youth, adults and families in Escondido.

City’s Gaps Analysis

Homeless Needs Inventory and Gap Analysis Table

263

UNK
Other
Permanent
Housing
47 53
Sheltered
Homeless
97 244 9 20
Unsheltered
Homeless
5 124 18 10
Current Gap 10 18 19 170

Housing Needs Inventory and Gap Analysis Table

Non-Homeless
Attachment "1"
215
Item17.

6 Current
Inventory Level of Need Gap Analysis
# of Units # of Households # of Households
Total Number of Rental Units – All
Types 22,990
Total Number of Affordable Rental
Units 1,642
Rental Units Affordable to HH at 30%
AMI (At-Risk of Homelessness) 71
Rental Units Affordable to HH at 50%
AMI (Other Populations) 262
0%-30% AMI Renter HH w/ 1 or more
severe housing problems
(At-Risk of Homelessness)
6,265
30%-50% AMI Renter HH w/ 1 or more
severe housing problems
(Other Populations)
5,030
Current Gaps 11,295

Qualifying Populations Sizes and Demographic Compositions

Qualified Populations Overview

Qualified Populations by Category

HUD has identified the following populations as eligible to receive HOME-ARP funding benefits:

1. People Experiencing Homelessness

7 of the 9,315 unduplicated clients calling from the city, 23% or 2,128 callers identified being at-risk of homelessness and or experiencing homelessness.

2. At Risk of Homelessness

3. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking

Attachment "1"
217
Item17.

8 4. Other populations requiring services or housing assistance to prevent homelessness and other populations at greatest risk of housing instability

Greatest risk of housing instability

Veterans

Community Outreach

9 there are gaps in the service delivery systems, determine if any sub population(s) are being severely underserved, categorize priority needs and discuss possible solutions. This feedback is a key factor in determine how to best utilize funding for eligible activities, projects, and programs.”

Stakeholder Consultations

Ethnic, Immigrant
and Refugee
Groups

Zoom
Consultation

December 6, 2022
Qualified Populations:

Persons experiencing
homelessness

Subpopulations identified:

Seniors
Middle Age

Eligible Activity:

Non-congregate shelter
Tenant Based Rental Assistance
Supportive Services: childcare
and employment
Affordable Housing

Summary:

Seniors are getting priced out
(explore shared housing and
rental subsidy). Lack of childcare
and employment programs for
“Middle Age” people.

Attachment "1"
219
Item17.

10 Legal Aid Fair Housing and Civil
Rights
Lower income and
at risk residents
particularly in
relation to housing
law, tenant rights,
and discrimination
based on race,
color, disability,
etc.

Zoom
Consultation

December 7, 2022
Qualified Populations:

At risk

Eligible Activity:

Supportive Services
Affordable Housing

Summary:

December 12,
2022
Qualified Populations:

Domestic Violence

Eligible Activity:

Supportive Services

Summary:

Community
Resource Center
Domestic Violence
Service Provider
Adults and children
fleeing, or
attempting to flee,
domestic violence,
dating violence,
sexual assault

Individuals and
families
experiencing
homelessness
Zoom
Consultation

December 12,
2022
Qualified Populations:

Persons experiencing
homelessness

Eligible Activity:

Affordable Housing with
Supportive Services
Shelter

Summary:

Need more housing with
supportive services and more
shelter beds. A space for
emergency placement then work
Attachment "1"
220
Item17.

11 with counselor to get into
housing.

Interfaith
Community
Services
Homeless and
Housing Service
Provider
Individuals and
families
experiencing
homelessness

Households at-risk
of homelessness

Other populations
Zoom
Consultation

December 21,
2022
Qualified Populations:

Persons experiencing
homelessness

Subpopulation:

Families

Eligible Activity:

Supportive Services – housing
stability case manager
Family Shelter
Mixed income affordable
housing
PSH

Summary:

National Core Affordable Housing
Developer
Other vulnerable
population:

Households who
are housing
instable, cost
burdened and at
risk of homeless

Extremely, very
and low-income
families and
individuals

Zoom
Consultation

December 22,
2022
Qualified Populations:

At Risk
Other vulnerable groups

Subpopulations identified:

Populations making above 80%
AMI

Eligible Activity:

Affordable Housing
Supportive Services

Summary:

Attachment "1"
221
Item17.

12 People
experiencing
homeless.

Regional Task
Force on
Homelessness
San Diego County’s
Continuum of Care
Individuals and
families
experiencing
homelessness

Households at-risk
of homelessness

Other populations
Zoom
Consultation

December 28,
2022
Qualified Populations:

Persons experiencing
homelessness

Subpopulations identified:

Family
Seniors

Eligible Activity:

Affordable Housing with
supportive services

Summary:

PSH with tailored services and
individualized supportive
services such as tapering subsidy.

Lack of recuperative care units.

Veteran Village of
San Diego
Veteran Service
Provider
Veterans and their
families who meet
the eligible criteria
Zoom
Consultation

January 4, 2023
Qualified Populations:

Veterans

Subpopulations identified:

Senior Veterans
Dishonorably discharged

Eligible Activity:

Affordable Housing
Supportive Services

Summary:

Attachment "1"
222
Item17.

13 One Safe Place Domestic Violence
Service Provider
Adults and children
fleeing, or
attempting to flee,
domestic violence,
dating violence,
sexual assault

As well as victims
of a hate crime,
elder abuse,
human trafficking,
violent loss, other
abuse or
victimization
Zoom
Consultation

January 5, 2023
Qualified Populations:

Domestic Violence, Sexual
Assault and Human Trafficking

Subpopulations identified:

Families

Eligible Activity:

Affordable Housing
Supportive Services

Summary:

Lack of affordable units, shelter
beds and transitional housing.

Shared data on DV and
trafficking.

San Diego County
Housing and
Community
Development
Services
Department
Public Housing
Authority
Households at-risk

Lower income
families,
individuals, elderly
and disabled
persons
Email
Consultation

February 10, 2023
Qualified Populations:

Persons experiencing
homelessness
At risk of homelessness

Subpopulations identified:

Seniors
Disabled
Extremely low-income

Eligible Activity:

None identified

Summary:

The city asked for housing
voucher data from 2022 and
2023. This contained population
breakdowns, total number of
vouchers the city receives and
waitlist information.

Attachment "1"
223
Item17.

14 San Diego Regional
Center (SDRC) –
North County
Office

Development Services
Provider
Persons with
developmental
disabilities
Phone
Consultation

February 16, 2023

Zoom follow up

March 1, 2023
Qualified Populations:

At Risk
Other vulnerable groups

Subpopulations identified:

Individuals at 0-30% AMI
Undocumented Families
Elderly population with an I/DD
diagnosis
All individuals whom are non-
ambulatory

Eligible Activity:

Affordable Housing
Supportive Services

Summary:

Alabaster Jar
Project
Human Trafficking
Service and Housing
Provider

Survivors of human
trafficking and
sexual exploitation
Email Consolation

February 23, 2023

Zoom Follow Up

March 7, 2023
Qualified Populations:

Homeless
Sex and Labor Trafficking

Subpopulations identified:

Minors, teenagers and young
adults

Eligible Activity:

Affordable Housing
Rental Assistance
Attachment "1"
224
Item17.

15 Non congregate shelter
Supportive Services

Summary:

Unicorn Homes Civil Rights and
Diversity Service
Provider
LGBTQ Housing
and Resource
Center
Email Consolation

February 23, 2023

Pending answers to Q & A
survey.

Focus Group Meeting

16 facilitated amongst the organizations to gather a more in-depth understanding of the current landscape and the missing gaps.

Overall summary of feedback received:

Qualified Populations

1. Individuals experiencing homelessness

2. Households at-risk of homelessness

3. Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking or human trafficking

4. Other vulnerable populations

Attachment "1"
226
Item17.

17 Increases in cost of living and housing prices for extremely low and very low-income households makes fair market units unattainable. Market rate housing further cost burdens households and escalate the threat of people losing their housing and becoming homeless.

5. Veterans and their families who meet the criteria stated above.

Eligible Activities

18 won’t change without a long-term commitment from and collaborative partnerships amongst the public- and private-sector stakeholders.

Public Participation

Dates and Details

• Date of public notice: 2/16/2023
• Public comment period: 2/16/2023 – 3/22/2023
• Date of public hearing: 3/22/2023

Public Participation Process:

This information is pending and will be updated at the end of the public comment period.

Additional Research Determining the Level of Need and Inventory Gaps

This included data pulled from:

19 • Local and regional Point in Time Count reports
• Domestic Violence Counts Report and Shelter Stats
• San Diego County’s HOME ARP plan
• Housing Affordability Interactive Dashboard for San Diego County • City’s Housing Element and fair market housing real estate report • ALL IN: The Federal Strategic Plan to Prevent and End Homelessness December 2022 • California’s Roadmap Home 2023 plan
• Escondido Police Department 2022 call logs
• South California rental Housing Association’s 2022 San Diego Region vacancy survey

Key findings affecting the qualified populations:

Assuming only 30% of take home income is being used, this would result in about $340 per month for housing related costs.

Attachment "1"
229
Item17.

20 2. Need for more Permanent Supportive Housing (PSH)
• The City has 263 PSH units which 79 are family and 640 are single units • The CA Homeless Housing Needs Assessment stated that over a 12-year period, 26% of all the CA households that will experience homelessness will need supportive housing. o San Diego County will need 4,442 individual PHS units and 273 family PHS units at a region by 2035.
• RTFH Regional Community Action Plan states that North County is currently short 718 total PSH units
o 79 family PHS units and 640 single adult PSH units are need • The 2022 ALL IN: Federal Strategic Plan to Prevent and End Homelessness echoes this need by stating that, “…services are not effective without housing, but housing is not sustainable without services. The fundamental solution to homelessness is housing … When a person is housed, they have a platform to address all their needs, no matter how complex. People are most successful when that housing is paired with the right level of voluntary and accessible support based on their expressed and individualized needs and preferences.”

• According the 2022 ALL IN: Federal Strategic Plan to Prevent and End Homelessness:
o Veteran women are more than twice as likely as non-veteran women to experience homelessness.

Attachment "1"
230
Item17.

21 o Foster Youth:
• In a given year, almost 20,000 foster your age of care nationally • Between 31%-46% of youth exit foster case and experience homelessness by the age of 26.
• During the 2022 Point in Time count there were 36 youth that were unsheltered in the city.
o This is not only a housing crisis but it is a health crisis as well:
• Housing is a social determinant of health:
• Nationally, tens of thousands of people die every year due to the dangerous condition of living without stable housing • In fact, people who experience homelessness die nearly 30 year earlier than the average American.
• Access is an issue for all:
• The number of people living in unsheltered locations is rising, yet there are often not enough safe, low-barrier shelter or interim housing options for people waiting for permanent housing and support.

Attachment "1"
231
Item17.

22 ▪ Nearly a million households are evicted annually according the 2022 ALL IN: Federal Strategic Plan to Prevent and End Homelessness and 30% of those are California households.
• A study was study was conducted in Seattle which revealed that

HOME-ARP Activities Allocation Determination

Based on the feedback received and data collected, City staff is recommending that the HOME-ARP grant is used to create affordable units and fund supportive services.

23 the community’s feedback stressing the need for land lord relations, rental and financial assistance, light case management to keep people on the right track toward independence, high deposit requirements, help finding the appropriate unit and coaching to help mobilize people upward. This is also in alignment with the HCD’s HOME-ARP allocation with at least 65% of their support services funding going toward financial assistance and services that will help these populations access, enter, and maintain secure housing in affordable housing units.

HOME-ARP Funding Distribution Table

The proposed breakdown is as follows:

Project Solicitation and Selection

Attachment "1"
233
Item17.

24 The City will be selecting a HOME-ARP rental project through a Notice of Funding Availability (NOFA) or Request for Proposal (RFP) process. City staff will solicit bids from eligible developers who are capable of carrying out the development of affordable housing. All project proposals will be evaluated based upon financial capacity, adherence to the HOME-ARP guidelines, and alignment with the needs outlined in this plan. Bonus scores will be given to applicants who align closest with the City’s qualified population.

No funding in being planned for non-profit operating assistance and capacity building even though there is a statutory limit of up to 5% for each.

HOME-ARP Production Housing Goals

Qualified Populations Preferences

25 most vulnerable, and statistically these individuals are facing the highest barrier to continued housing.

Preferences will not be applied to any specific subpopulations.

Refinancing Guidelines

The City does not intend to use HOME-ARP funds to refinance existing debt.

Attachment "1"
235
Item17.
1 HOME-ARP Program Fact Sheet:

Rental Housing
Overview:

A PJ may use HOME-ARP funds to acquire, construct and rehabilitate rental housing for occupancy by individuals and families that meet one of the Qualifying Populations defined in CPD Notice: Requirements for the Use of Funds in the HOME-American Rescue Plan Program (“the Notice”). HOME-ARP rental housing may include single family or multifamily housing, transitional or permanent housing, group homes, single room occupancy (SRO) units, and manufactured housing.

To promote the development of financially viable housing, PJs may pay the entire amount of eligible costs associated with HOME-ARP rental units, are encouraged to work with local PHAs and state or local agencies to obtain project-based rental assistance and may provide ongoing operating cost assistance or capitalize a project operating cost assistance reserve to address operating deficits of HOME-ARP units occupied by qualifying households. To promote inclusion of HOME-ARP units in mixed-income housing, up to 30 percent of the units a PJ funds with its HOME-ARP grant may be restricted for occupancy by households that are low-income.

Eligible Activities and Costs:

Eligible Activities: Acquisition, construction, and rehabilitation of affordable rental housing, including reconstruction as defined in 24 CFR 92.2. Acquisition of vacant land or demolition may be undertaken only with respect to a HOME-ARP project for which construction is expected to start within 12 months of commitment.
 Eligible Costs: HOME-ARP funds may pay for up to 100 percent of the following eligible costs associated with HOME-ARP rental units:
o
Development hard costs include the actual cost of constructing and rehabilitating housing to meet applicable property standards. Eligible development costs also include site improvements, utility connections and costs to construct or rehabilitate laundry and community facilities located within the same building as the HOME-ARP housing; o
Refinancing of existing debt secured by a HOME-ARP rental project rehabilitated with HOME-ARP funds;
o Acquisition costs of improved or unimproved real property; o Related soft costs including reasonable and necessary costs incurred by the PJ or project owner associated with the financing, development, acquisition, or rehabilitation of HOME-APR rental housing;
o Relocation costs as defined in 24 CFR 92.206(f), 24 CFR 92.353, and the Notice; o Certain costs related to the payment of construction, bridge, or guaranteed loans, if HOME-ARP is part of original financing; and
Attachment "2"
236
Item17.
2 o Operating cost assistance, through a capitalized operating reserve or ongoing operating cost payments, for HOME-ARP units restricted for occupancy by qualifying households.

Beneficiary Requirements:
 Eligible Beneficiaries: HOME-ARP funds must primarily benefit individuals and families that meet one of the qualifying populations defined in the Notice. However, not more than 30 percent of the total number of rental units assisted with HOME-ARP funds may be occupied by low-income households as defined in 24 CFR 92.2.
 Household Income: The following income requirements apply to HOME-ARP households:
o Qualifying Households: At initial occupancy and each subsequent year during the minimum 15-year compliance period, the PJ must use the definition of annual income at 24 CFR 5.609 and the process described in the Notice to determine the household’s contribution to rent.
o Low-Income Households: The PJ must use the definition of annual income at 24 CFR

5.609 and the process described in the Notice to examine the household’s income at initial occupancy and each subsequent year during the minimum 15-year compliance period to determine the household’s ongoing income eligibility and applicable contribution to rent.
 Tenant Contribution to Rent: A qualifying household may not contribute to rent more than is affordable based on the PJ’s determination of the household’s income.

Project Requirements:
 Targeting and Occupancy: Not less than 70 percent of the total number of rental units a PJ assists with HOME-ARP funds must be restricted to occupancy by households that are qualifying households at the time of the household’s initial occupancy. Not more than 30 percent of the total number of rental units assisted with HOME-ARP funds by the PJ may be restricted for occupancy by low-income households. A household that met the definition of one or more qualifying populations at initial occupancy remains a qualifying household throughout their period of occupancy irrespective of changes in income or whether they continue to meet a qualifying population definition (e.g., no longer qualify as homeless after being admitted to a HOME-ARP unit).
 Property Standards: HOME-ARP rental units must comply with all rental property standards required in 24 CFR 92.251 paragraphs (a), (b), (c)(1) and (2), (e), and (f).  Minimum Compliance Period: HOME-ARP rental units must comply with the HOME-ARP rental requirements for a minimum of 15 years, irrespective of the amount of HOME-ARP funds invested in the project or the activity undertaken. If a project-based rental assistance Housing Assistance Payments (HAP) contract is awarded to a HOME-ARP rental project, the minimum compliance period is the greater of 15 years or the term of the HAP contract.  Rent Limitations: HOME-ARP establishes rent limitations for units restricted for qualifying households and units restricted for low-income households as follows:

Attachment "2"
237
Item17.
3 o Units Restricted for Occupancy by Qualifying Households: The HOME-ARP rent may not exceed 30 percent of the adjusted income of a household whose annual income is equal to or less than 50 percent of the median income for the area, as determined by HUD (i.e., Low HOME Rents).
o Units Restricted for Occupancy by Low-Income Households: HOME-ARP rental units restricted for low-income households must comply with the rent limitations at 24 CFR

92.252(a).
o Additional HOME-ARP Unit Limitations, if applicable:
 Federal/State Project-Based Rental Subsidy: A HOME-ARP unit that receives Federal or state project-based rental subsidy may charge the rent allowable under the rental subsidy program.
 Single Room Occupancy Units (SRO): If an SRO unit has both sanitary and food preparation facilities, the maximum HOME-ARP rent is based on the zero-bedroom fair market rent. If the SRO unit only has sanitary facilities, the maximum HOME- ARP rent is based on 75 percent of the zero-bedroom fair market rent.  Changes in Income and Over Income Households: A PJ must take action to address over- income households occupying HOME-ARP units as follows:
o Qualifying Households: A qualifying household whose annual income at the time of recertification is above 50 percent of median income for the area but below 80 percent of median income for the area must pay the rent specified in 24 CFR 92.252(a). o Low-Income Households: A low-income household whose income is above 80 percent of the median income for the area must pay rent that complies with 24 CFR 92.252(i)(2).  Lease and Tenant Protections: Each household that occupies a HOME-ARP assisted unit must execute a lease that complies with the tenant protection requirements prescribed in the Notice.
 Master Leasing and Use of a HOME-ARP Sponsor: A HOME-ARP sponsor – a nonprofit organization that provides housing or supportive services to qualifying households – may execute a lease for a HOME-ARP unit or a master lease for multiple units in a project. The HOME-ARP sponsor may then sublease the HOME-ARP rental unit to a qualifying household.  Coordinated Entry and Project-Specific Waitlists: On a project-by-project basis, a PJ must decide whether a project owner may use a Continuum of Care’s (CoC) Coordinated Entry (CE), a CoC’s CE and other referral sources, or a project-specific waitlist to select qualifying households for HOME-ARP units restricted for occupancy by qualifying households. A project owner must use a project-specific waitlist to select low-income households to occupy units restricted for occupancy by low-income households.

Oversight and Management:

A PJ is responsible for the day-to-day management and oversight of its HOME-ARP program including but not limited to the following:

Attachment "2"
238
Item17.
4  Underwriting and Subsidy Layering: A PJ must establish underwriting and subsidy layering guidelines for determining the appropriate amount of HOME-ARP funds, including any operating cost assistance provided to maintain the financial viability of the HOME-ARP project through the 15-year minimum compliance period.
 Enforcement of Rental Requirements: A PJ must impose the HOME-ARP rental requirements through a deed restriction, covenant running with the land, legally binding agreement restricting the use of the property and recorded on the property in accordance with State recordation laws, or other mechanism approved by HUD.
 Project Completion, Occupancy and Noncompliance: A PJ must repay any HOME-ARP funds invested in units that are 1) not completed within 4 year of project commitment, 2) not rented to eligible qualifying or low-income households within 12 months of project completion, or 3) terminated before completion or otherwise not compliant with the HOME-ARP rental requirements.
 Management and Oversight of Operating Cost Assistance Reserve: A PJ must require any HOME-ARP funds expended for project operating cost assistance reserves be held by a project owner in a separate interest-bearing account with review and written approval from the PJ prior to any disbursement of HOME-ARP funds from the operating cost assistance reserve account. The PJ must, no less than annually, review the operating cost assistance reserve account to determine that it is appropriately sized based on projected deficits for units restricted for occupancy by qualifying households.

Attachment "2"
239
Item17.

HOME-ARP Program Fact Sheet:

Supportive Services
Overview:

A PJ may use HOME-ARP funds to provide a broad range of supportive services to individuals and families that meet one of the qualifying populations as defined in CPD Notice:

Requirements for the Use of Funds in the HOME-American Rescue Plan Program (“the Notice”).

Supportive services may be provided to individuals and families who are not already receiving the services outlined in the Notice through another program. PJs may establish a separate supportive services activity or activities or may combine supportive services with other HOME- ARP activities.

Eligible Services and Costs:

Eligible Supportive Services: There are three categories specifically included as supportive services under HOME-ARP:
 McKinney-Vento Supportive Services: McKinney-Vento Supportive Services under HOME- ARP are adapted from the services listed in section 401(29) of the McKinney-Vento Homeless Assistance Act (“McKinney-Vento Supportive Services”) (42 U.S.C. 11360(29)).  Homelessness Prevention Services: HOME-ARP Homelessness Prevention Services are adapted from certain eligible homelessness prevention services under the Emergency Services Grant (ESG) regulations at 24 CFR Part 576.
 Housing Counseling Services: Housing counseling services under HOME-ARP are those consistent with the definition of housing counseling and housing counseling services defined at 24 CFR 5.100 and 5.111, respectively, except that homeowner assistance and related services are not eligible HOME-ARP activities.

Eligible Costs of Supportive Services for Qualifying Individuals and Families: HOME-ARP funds may be used to pay eligible costs associated with the HOME-ARP supportive services activity in accordance with the requirements of the Notice.

Eligible Costs Associated with McKinney-Vento and Homelessness Prevention Supportive Services:
 All qualifying households are eligible to receive supportive services under the HOME-ARP supportive services activity. Eligible costs associated with McKinney-Vento supportive services and homelessness prevention supportive services include:
o Costs of child care;
o Costs of improving knowledge and basic educational skills; 1 Attachment "2"
240
Item17.

o Costs of establishing and/or operating employment assistance and job training programs
o Costs of providing meals or groceries
o Costs of assisting eligible program participants to locate, obtain and retain housing o Costs of certain legal services
o Costs of teaching critical life management skills
o Financial assistance costs, including:
 Rental application fees
 Security deposits
 Utility deposits
 Payment of rental arrears
**Please consult the Notice for a full list and description of eligible costs.  The costs of homelessness prevention services are only eligible to the extent that the assistance is necessary to help program participants regain stability in their current permanent housing or move into other permanent housing to achieve stability in that housing.
 PJs must establish requirements documenting an eligible cost as McKinney-Vento supportive services to an individual or family in a qualifying population, homelessness prevention services, or Housing Counseling.

Eligible Costs Associated with Housing Counseling: Costs associated with housing counseling services as defined at 24 CFR 5.100 and 5.111 are eligible. Costs may only be paid under HOME - ARP if housing counseling services are provided by HUD-certified housing counselors and organizations.
 Eligible costs include:
o Staff salaries and overhead costs of HUD-certified housing counseling agencies related to directly providing eligible housing counseling services to HOME- program participants o Development of a housing counseling workplan
o Marketing and outreach
o Intake
o Financial and housing affordability analysis
o Action plans that outline what the housing counseling agency and the client will do to meet the client's housing goals and that address the client's housing problem(s) o Follow-up communication with program participants
 Costs for the provision of services to existing homeowners related to homeownership and mortgages to existing homeowners are not eligible under HOME-ARP.  If a program participant is a candidate for homeownership, costs associated with pre- purchase homebuying counseling, education and outreach are eligible under HOME-ARP. 2 Attachment "2"
241
Item17.

Oversight and Management: A PJ is responsible for the day-to-day management and oversight of its HOME-ARP program including but not limited to the following:
 Oversight of Eligible Costs: All supportive service costs paid for by HOME-ARP must comply with the requirements of the Notice and Uniform Administrative Requirements at 2 CFR part 200, subpart E, Cost Principles that require costs be necessary and reasonable.  No Duplication of Services: PJs are responsible for establishing requirements that allow a program participant to receive only the HOME-ARP services needed so there is no duplication of services or assistance in the use of HOME-ARP funds for supportive services.  Termination of Assistance: The PJ may terminate assistance to a program participant who violates program requirements or conditions of occupancy. 3 Attachment "2"
242
Item17.

HOME-ARP Program Fact Sheet:

Non-Congregate Shelter
Overview:

HOME-ARP funds may be used to acquire and develop non-congregate shelter (HOME-ARP NCS) for individuals and families that meet one of the Qualifying Populations defined in the CPD Notice: Requirements for the Use of Funds in the HOME-American Rescue Plan Program (“the Notice”). NCS provides private units or rooms as temporary shelter to individuals and families and do not require occupants to sign a lease or occupancy agreement. This activity may include the construction of new structures or the acquisition and/or rehabilitation of existing structures (such as motels, nursing homes, or other facilities) to be for use as HOME-ARP NCS. The Notice establishes requirements applicable to HOME-ARP NCS.

Eligible Activities and Costs:
 Eligible Activities: HOME-ARP funds may be used to acquire, rehabilitate, or construct NCS units to serve individuals and families Qualifying Populations.  Eligible Costs: HOME-ARP funds may be used for:
o Acquisition Costs: Costs to acquire improved or unimproved real property for use as or development of HOME-ARP NCS.
o Demolition Costs: Costs to demolish existing structures for the purpose of developing HOME-ARP NCS.
o Development Hard Costs: Costs to rehabilitate or construct HOME-ARP NCS units to meet the HOME-ARP minimum habitability standards. Costs to make improvements to the project site, including installation of utilities or utility connections, laundry facilities, community facilities, on-site management, or supportive service offices. o Related Soft Costs: Reasonable and necessary costs incurred by the PJ, subrecipient, or project owner associated with financing, acquisition, and development of HOME-ARP NCS projects.
o Replacement Reserve: Costs to capitalize a replacement reserve to cover reasonable and necessary costs of replacing major systems and their components.  Ineligible Costs: HOME-ARP funds may not be used to pay ongoing costs of operating HOME-ARP NCS or to convert NCS to housing.

Admission and Occupancy:
 HOME-ARP NCS units may only be occupied by individuals or families that meet the criteria for one or more of the Qualifying Populations.
 Program participants may not be charged occupancy fees or other charges to occupy a HOME-ARP NCS unit unless the PJ determines such fees and charges are customary and reasonable and the charges comply with 24 CFR 578.77(b). 1 Attachment "2"
243
Item17.

 PJs are encouraged to incorporate HOME-ARP NCS units into the CE established by the CoC(s) for the area the NCS is funded to serve, if the CE complies with the requirements established in the HOME-ARP Notice.
 HOME-ARP supportive services may also be provided, if needed, to Qualifying Populations served by the NCS.

Project Requirements:
 Property and Habitability Standards: At project completion, HOME-ARP NCS units and common areas must meet all applicable State and local codes, ordinances, and requirements and HUD’s Lead Safe Housing Rules at 24 CFR Part 35. Project classification as acquisition only, rehabilitation, or new construction is determined by the PJ’s local code requirements based on specific work to be performed. Projects must meet HOME-ARP NCS ongoing property standards throughout the restricted use period.  Restricted Use Period: HOME-ARP NCS projects must comply with HOME-ARP requirements during the restricted use period established in the HOME-ARP Notice.

New Construction: 15 years
Rehabilitation: 10 years
Acquisition Only: 10 years
 Use as NCS: The NCS may remain as HOME-ARP NCS for the restricted use period or may be used as NCS under the Emergency Shelter Grant (ESG) program.  Conversion to Housing: ARP permits HOME-ARP NCS units to be converted into permanent housing under the Continuum of Care (CoC) program or permanent affordable housing during the restricted use period in accordance with requirements established in the Notice.

No HOME-ARP funds may be used for conversion.
o Minimum Use Period: All HOME-ARP NCS projects must be operated as NCS for a minimum period of time prior to conversion. The minimum use period prior to conversion varies based on the original HOME-ARP NCS eligible activity undertaken and the amount of funds invested in the project.
o Permanent Affordable Housing: During the restricted use period, but only after the HOME-ARP NCS minimum use period, a PJ may provide written approval to convert the project from HOME-ARP NCS to permanent affordable housing (e.g., affordable multifamily rental housing, transitional housing) in accordance with the requirements prescribed in the PJ’s written agreement with the HOME-ARP NCS owner. o CoC Permanent Housing: During the restricted use period, but only after the HOME-ARP NCS minimum use period has been met, a PJ may permit conversion of a HOME-ARP NCS project to permanent housing under 24 CFR 578.43 (acquisition) and/or 24 CFR 578.45 (rehabilitation) of the CoC program regulations. Conversions must comply with any conversion requirements established in the PJ’s written agreement with the HOME- ARP NCS owner. If conversion is planned, the HOME-ARP NCS use restrictions must 2 Attachment "2"
244
Item17.

remain in place until the project is approved for CoC funding and the required CoC restrictions are imposed on the property.

PJ Management and Oversight:
 Project Development Due Diligence: Before awarding HOME-ARP funds to a HOME-ARP NCS project, PJs must determine that acquisition and/or development is financially feasible. The PJ is responsible for maintaining continued operation of the NCS and must consider whether the HOME-ARP NCS project has secured or has a high likelihood of securing operating funding, because operating costs cannot be paid with HOME-ARP.

PJs must assess HOME-ARP NCS projects, including a review of information from the owner and/or developer that demonstrates the project’s financial feasibility throughout the restricted use period.

Before committing funds, PJs should also determine whether the owner intends to continue operating the project as HOME-ARP NCS or emergency shelter NCS under ESG for the restricted use period or plans to convert the HOME-ARP NCS to housing after the minimum use period has been met. In such instances, the PJ should consider the physical design needs of an eventual conversion in its evaluation of the HOME-ARP NCS project. 3 Attachment "2"
245
Item17.

HOME-ARP Program Fact Sheet:

Tenant-Based Rental Assistance
Overview:

HOME-ARP funds may be used to provide tenant-based rental assistance (“HOME-ARP TBRA”) to individuals and families that meet one of the Qualifying Populations defined in the CPD Notice: Requirements for the Use of Funds in the HOME-American Rescue Plan Program (“the Notice”). A PJ may assist a qualifying household by providing payments towards housing and housing-related costs, such as rent, security deposits, utility deposits, and utility costs. Because HOME-ARP TBRA is attached to the qualifying household and not a particular rental unit, the household may choose to move to another unit with continued assistance as long as the new unit meets the applicable property standards. HOME-ARP TBRA may be provided in coordination with a non-profit HOME-ARP sponsor that facilitates a qualifying household’s use of HOME-ARP TBRA. The HOME-ARP sponsor may make rental subsidy payments and a security deposit payment on behalf of a qualifying household or may sublease a unit to the qualifying household.

Eligible Costs:
 Eligible Costs: HOME-ARP funds may be used to provide rental assistance, security deposit assistance, utility deposits, and utility payments to qualifying households. HOME-ARP may pay up to 100% of these costs for a qualifying household.

Project Requirements:
 Portability of Assistance: A PJ may require the HOME-ARP TBRA assisted household to use the assistance within the PJ's boundaries or may permit the household to use the assistance outside its boundaries as outlined at 24 CFR 92.209(d).  Term of Rental Assistance Contract: The PJ must determine the maximum term of HOME- ARP TBRA assistance contracts and whether contracts will be renewable.  Maximum Subsidy: The PJ must establish policies for the allowable maximum subsidy, which may differ from the maximum subsidy requirements at 24 CFR 92.209(h). PJs may provide up to 100 percent subsidy for rent, security deposit payments, and utility bills. The PJ must also establish policies for determining any household contribution to rent.  Rent Reasonableness: The PJ must determine whether the rent is reasonable in comparison to rent for other comparable unassisted units and must disapprove a lease if the rent is not reasonable.
 Housing Quality Standards: Housing must comply with all housing quality standards required at 24 CFR 982.401 (or successor inspection standards issued by HUD) unless the 1 Attachment "2"
246
Item17.

tenant is residing in a HOME or HOME-ARP unit, in which case the PJ may defer to initial and ongoing inspection standards for the housing.
 Use of a HOME-ARP Sponsor: A HOME-ARP sponsor – a nonprofit organization that provides housing or supportive services to qualifying households – may facilitate the leasing of a HOME-ARP rental unit or the use and maintenance of HOME-ARP TBRA. A sponsor may make rental subsidy payments and a security deposit payment on behalf of a qualifying household.

PJ Management and Oversight:
 Rental Assistance Contract: HOME-ARP TBRA must be provided through a rental assistance contract with the PJ and (1) an owner that leases a unit to a qualifying household; (2) the qualifying household, (3) a HOME-ARP sponsor or (4) an owner and the qualifying household in a tri-party contract.
 Lease and Sublease: PJs must require and verify that there is an executed lease between the qualifying household and the owner of the rental unit or a between an owner and a HOME- ARP sponsor with a sublease between the qualifying households and the HOME-ARP sponsor that complies with tenant protection requirements in accordance with 24 CFR

92.253(a). PJs may permit a HOME-ARP sponsor to execute a lease with an owner for an individual unit or a master lease for more than one unit restricted for occupancy by HOME- ARP TBRA households.
 Written Agreement with HOME-ARP Sponsor: The PJ must enter into a written agreement with the HOME-ARP sponsor if the HOME-ARP TBRA rental assistance contract is not with the HOME-ARP sponsor and the HOME-ARP sponsor will be receiving the HOME-ARP TBRA subsidy directly from the PJ.
2 Attachment "2"
247
Item17.

HOME-ARP Program Fact Sheet:

Nonprofit Operating and Capacity Building Assistance
Overview:

A PJ may use up to 5 percent of its HOME-ARP allocation to pay operating expenses of CHDOs and other nonprofit organizations that will carry out activities with HOME-ARP funds. A PJ may also use up to an additional 5 percent of its allocation to pay eligible costs related to developing the capacity of eligible nonprofit organizations to successfully carry out HOME-ARP eligible activities. PJs may award operating expense assistance or capacity building assistance to a nonprofit organization if it reasonably expects to provide HOME-ARP funds to the organization for any of the eligible HOME-ARP activities within 24 months of the award.

Eligible Costs:
 Operating Expense Assistance: HOME-ARP funds may be used to provide operating expense assistance to CHDOs and other nonprofit organizations. Operating expense assistance is defined as reasonable and necessary costs of operating the nonprofit organization. Eligible costs include:
o Employee salaries, wages and other employee compensation and benefits o Employee education, training and travel
o Rent
o Utilities
o Communication costs
o Taxes
o Insurance
o Equipment, materials, and supplies.

HOME-ARP funds used for operating expenses must be used for the “general operating costs” of the nonprofit organization. These operating costs must not have a particular final cost objective, such as a project or activity, or must not be directly assignable to a HOME- ARP activity or project.
o For example: HOME-ARP funds for operating expenses may not be used for staffing costs to provide supportive services or develop HOME-ARP-rental housing (as operating costs to develop HOME-ARP rental housing are paid for by a developer fee which is a project delivery or soft cost).
 Capacity Building Assistance: HOME-ARP funds may be used to provide capacity building assistance to CHDOs and other nonprofit organizations. Capacity building expenses are defined as reasonable and necessary general operating costs that will result in expansion or improvement of an organization’s ability to successfully carry out for eligible HOME-ARP activities. Eligible costs include:
o Salaries for new hires including wages and other employee compensation and benefits;
1 Attachment "2"
248
Item17.

o Employee training or other staff development that enhances an employee’s skill set and expertise;
o Equipment (e.g. computer software or programs that improve organizational processes), upgrades to materials, and supplies; and
o Contracts for technical assistance or for consultants with expertise related to the HOME-ARP qualifying populations.

Limitations on Assistance:
 In any fiscal year, operating assistance provided to a nonprofit organization may not exceed the greater of 50 percent of the general operating expenses of the organization for that fiscal year, as described above, or $50,000.
 In any fiscal year, capacity building assistance provided to a nonprofit organization may not exceed the greater of 50 percent of the general operating expenses of the organization, as described above, or $50,000.
 If an organization receives both operating assistance and capacity building assistance in any fiscal year, the aggregate total amount of assistance it may receive is the greater 50 percent of the organization’s total operating expenses for that fiscal year or $75,000.

PJ Management and Oversight:
 Written Agreement: A PJ must enter into a written agreement with the CHDO or non-profit describing the amounts and uses of HOME-ARP funds for operating expenses or capacity building. A PJ commits operating expense assistance or capacity building assistance when it enters into a legally binding agreement with the nonprofit organization to provide the assistance.
 IDIS: HUD has established separate fund types in IDIS for operating expense assistance and capacity building assistance to facilitate accurate tracking and ensure that PJs do not exceed the limits
2 Attachment "2"
249
Item17.

ATTACHMENT “3”

Qualified Populations as defined by HOME-HUD CPD-21-10 notice

Qualified Populations

The following provide a brief definition and overview of the qualified population for HOME- ARP. Most specific details can be found in section IV of the notice.

1. Homeless, 103(a) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a));

(1) An individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning:

(i) An individual or family with a primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus or train station, airport, or
camping ground;
(ii) An individual or family living in a supervised publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, state, or local government programs for low-income individuals); or
(iii) An individual who is exiting an institution where he or she resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution;

(2) An individual or family who will imminently lose their primary nighttime residence, provided that:

(i) The primary nighttime residence will be lost within 14 days of the date of application for homeless assistance;
(ii) No subsequent residence has been identified; and
(iii) The individual or family lacks the resources or support networks, e.g., family, friends, faith-based or other social networks needed to obtain other permanent housing;

Attachment "3"
250
Item17.
(3) Unaccompanied youth under 25 years of age, or families with children and youth, who do not otherwise qualify as homeless under this definition, but who:
(i) Are defined as homeless under section 387 of the Runaway and Homeless Youth Act (42 U.S.C. 5732a), section 637 of the Head Start Act (42 U.S.C. 9832), section 41403 of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2), section 330(h) of the Public Health Service Act (42 U.S.C. 254b(h)), section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012), section 17(b) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)), or section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C.11434a);
(ii) Have not had a lease, ownership interest, or occupancy agreement in permanent housing at any time during the 60 days immediately preceding the date of application for homeless assistance; (iii) Have experienced persistent instability as measured by two moves or more during the 60-day period immediately preceding the date of applying for homeless assistance; and
(iv) Can be expected to continue in such status for an extended period of time because of chronic disabilities, chronic physical health or mental health conditions, substance addiction, histories of domestic violence or childhood abuse (including neglect), the presence of a child or youth with a disability, or two or more barriers to employment, which include the lack of a high school degree or General Education Development (GED), illiteracy, low English proficiency, a history of incarceration or detention for criminal activity, and a history of unstable employment;

2. At risk of Homelessness, as defined in section 401(1) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360(1));:
(1) An individual or family who:
(i) Has an annual income below 30 percent of median family income for the area, as determined by HUD;
(ii) Does not have sufficient resources or support networks, e.g., family, friends, faithbased or other social networks, immediately available to prevent them from moving to an emergency shelter or another place described in paragraph (1) of the “Homeless” definition in this section; and
(iii) Meets one of the following conditions:

Attachment "3"
251
Item17.
(A) Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance;
(B) Is living in the home of another because of economic hardship; (C) Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance;
(D) Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by federal, State, or local government programs for lowincome individuals;
(E) Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside
more than 1.5 people per room, as defined by the U.S. Census Bureau;
(F) Is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility, foster care or other youth facility, or correction
program or institution); or
(G) Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved consolidated plan;

(2) A child or youth who does not qualify as “homeless” under this section, but qualifies as “homeless” under section 387(3) of the Runaway and Homeless Youth Act (42 U.S.C. 5732a(3)), section 637(11) of the Head Start Act (42 U.S.C. 9832(11)), section 41403(6) of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2(6)), section 330(h)(5)(A) of the Public Health Service Act (42 U.S.C. 254b(h)(5)(A)), section 3(l) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(l)), or section 17(b)(15) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)(15)); or
(3) A child or youth who does not qualify as “homeless” under this section but qualifies as “homeless” under section 725(2) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11434a(2)), and the parent(s) or guardian(s) of that child or youth if living with her or him.

3. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or Human Trafficking, as defined by the Secretary;.

For HOME-ARP, this population includes any individual or family who is fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human Attachment "3"
252
Item17.
trafficking. This population includes cases where an individual or family reasonably believes that there is a threat of imminent harm from further violence due to dangerous or life-threatening conditions that relate to violence against the individual or a family member, including a child, that has either taken place within the individual’s or family’s primary nighttime residence or has made the individual or family afraid to return or remain within the same dwelling unit. In the case of sexual assault, this also includes cases where an individual reasonably believes there is a threat of imminent harm from further violence if the individual remains within the same dwelling unit that the individual is currently occupying, or the sexual assault occurred on the premises during the 90-day period preceding the date of the request for transfer.

Domestic violence, which is defined in 24 CFR 5.2003 includes felony or misdemeanor crimes of violence committed by:
1) A current or former spouse or intimate partner of the victim (the term “spouse
or intimate partner of the victim” includes a person who is or has been in a social relationship of a romantic or intimate nature with the victim, as determined by the length of the relationship, the type of the relationship, and the frequency of interaction between the persons involved in the relationship);

2) A person with whom the victim shares a child in common;

3) A person who is cohabitating with or has cohabitated with the victim as a spouse or intimate partner;

4) A person similarly situated to a spouse of the victim under the domestic or family violence laws of the jurisdiction receiving HOME-ARP funds; or

5) Any other person against an adult or youth victim who is protected from that person's acts under the domestic or family violence laws of the jurisdiction.

Dating violence which is defined in 24 CFR 5.2003 means violence committed by a person:
1) Who is or has been in a social relationship of a romantic or intimate nature with the victim; and

2) Where the existence of such a relationship shall be determined based on a consideration of the following factors:
a. The length of the relationship;
b. The type of relationship; and
Attachment "3"
253
Item17.
c. The frequency of interaction between the persons involved in the relationship.

Sexual assault which is defined in 24 CFR 5.2003 means any nonconsensual sexual act proscribed by Federal, Tribal, or State law, including when the victim lacks capacity to consent.

Stalking which is defined in 24 CFR 5.2003 means engaging in a course of conduct directed at a specific person that would cause a reasonable person to:
1) Fear for the person’s individual safety or the safety of others; or

2) Suffer substantial emotional distress.

Human Trafficking includes both sex and labor trafficking, as outlined in the Trafficking Victims Protection Act of 2000 (TVPA), as amended (22 U.S.C. 7102).

These are defined as:
1) Sex trafficking means the recruitment, harboring, transportation, provision, obtaining, patronizing, or soliciting of a person for the purpose of a commercial sex act, in which the commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or
2) Labor trafficking means the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery.

4. Other Populations where providing supportive services or assistance under section 212(a) of NAHA (42 U.S.C. 12742(a)) would prevent the family’s homelessness or would serve those with the greatest risk of housing instability. HUD defines these populations as individuals and households who do not qualify under any of the populations above but meet one of the following criteria:

(1) Other Families Requiring Services or Housing Assistance to Prevent Homelessness is defined as households (i.e., individuals and families) who have previously been qualified as “homeless” as defined in 24 CFR 91.5, are currently housed due to temporary or emergency assistance, including financial assistance, services, temporary rental assistance or some type of other assistance to allow the household to be housed, and who need additional housing assistance or supportive services to avoid a return to homelessness.

(2) At Greatest Risk of Housing Instability is defined as household who meets either Attachment "3"
254
Item17.
paragraph (i) or (ii) below:

(i) has annual income that is less than or equal to 30% of the area median income, as determined by HUD and is experiencing severe cost burden (i.e., is paying more than 50% of monthly household income toward housing costs); (ii) has annual income that is less than or equal to 50% of the area median income, as determined by HUD, AND meets one of the following conditions from paragraph
(iii) of the “At risk of homelessness” definition established at 24 CFR 91.5:
(A)Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance;
(B) Is living in the home of another because of economic hardship; (C) Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance;
(D)Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by Federal, State, or local government programs for low-income individuals;
(E) Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside more than 1.5 persons reside per room, as defined by the U.S. Census Bureau;
(F) Is exiting a publicly funded institution, or system of care (such as a health-care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or
(G)Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved consolidated plan Veterans and Families that include a Veteran Family Member that meet the criteria for one of the qualifying populations described above are eligible to receive HOME-ARP assistance.

5. Veterans and families that include a veteran family member that meet one of the preceding criteria

Attachment "3"
255
Item17.

Attachment “4”
2022 HUD Maximum Income and Rent Limits Chart
(Effective April 18, 2022)

FAMILY SIZE
30% of AMI Gross Rent
Extremely Low Income 30% of Income
1 27,350 $684
2 31,250 $781
3 35,150 $879
4 39,050 $976
5 42,200 $1,055

50% of AMI Gross Rent
Very Low Income 30% of Income
1 45,550 $1,139
2 52,050 $1,301
3 58,550 $1,464
4 65,050 $1,626
5 70,300 $1,758

80% of AMI
Low Income
1 72,900 $1,823
2 83,300 $2,083
3 93,700 $2,343
4 104,100 $2,603
5 112,450 $2,811

Median Income

1 74,850 $1,871
2 85,500 $2,138
3 96,200 $2,405
4 106,900 $2,673
5 115,450 $2,886

120% of AMI
1 89,800 $2,245
2 102,650 $2,566
3 115,450 $2,886
4 128,300 $3,208
5 138,550 $3,464
256
Item17.

Attachment “5”
Public Comments

1. Thank you so much for our phone conversation on 3/8. I appreciate the time you spent with me and decided to submit a public comment.

Regarding the Consolidated Plan and 2021 Annual Action Plan, I had a follow-up conversation with City Planner Adam Finestone. I believe that between the two of you, my concerns were addressed.

All my further comments are directed at the HOME-ARP Allocation Plan dated 2/16/2023.

I would like to thank you and all the staff of the Housing and Neighborhood Services Department. It is clear that a lot of time and effort went into this very good document.

Our conversation left me with many unanswered questions. To find answers, I went directly to the HUD HOME-ARP Implementation Notice CPD-21-10 Dated September 13, 2021.

There are four (4) eligible activities described in the Escondido Plan:
· Production or preservation of affordable housing · Tenant-based rental assistance
· Supportive Services
· Acquisition and development of non-congregate shelter These are the six (6) eligible activities described in the implementation notice:
· Administration and Planning
· HOME-ARP Rental Housing
· Tenant-based rental assistance (TBRA)
· Supportive Services
· Acquisition and development of non-congregate shelter · Nonprofit Operating and Capacity Building Assistance

Regarding Supporting Services:

The implementation notice provides extensive guidelines on what defines an eligible supportive service (24CFR578.53(e). The categories include:
· Annual assessment of service needs
· Assistance with moving costs
· Case management
· Child care
257
Item17.

Attachment “5”
· Education services
· Employment assistance and job training
· Food
· Housing search and counseling services
· Legal services
· Life skills training
· Mental health services
· Outpatient health services
· Outreach services
· Substance abuse treatment services
· Transportation
· Utility deposits
· Direct provision of services

Regarding acquisition and development of non-congregate shelter (NCS):

The implementation notice provides this definition of allowed NCS:

One or more buildings that provide private units or rooms as temporary shelter to individuals and families and does not require occupants to sign a lease or occupancy agreement.

Funds may be used to acquire and develop NCS for individuals and families in qualifying populations.

This activity may include but is not limited to the acquisition of land and construction or acquisition and/or rehabilitation of existing structures such as motels, hotels, or other facilities to be used for NCS.

The Frequently Asked Questions provide further guidance:

Question: Can participating jurisdictions acquire and rehabilitate single family homes into NCS with multiple self-contained units with in-unit sanitary facilities? Answer: Yes, if such units comply with the NCS requirements, including local codes, and ordinances. NCS permits one or more buildings that provide private units or rooms as temporary shelter to individuals and families. Participating jurisdictions may acquire and/or rehab single-family homes into NCS to serve multiple households in compliance with all the requirements in the notice.

Question: Can participating jurisdictions develop NCS units that share sanitary facilities (i.e. dormitory style in which more than one unit has access to the same bathroom)? 258
Item17.

Attachment “5”
Answer: No. The minimum property standards require in-unit sanitary facilities that are in proper operating condition and are adequate for personal cleanliness and the disposal of human waste. The costs of rehabilitating or constructing a building to meet these standards is an eligible cost.

Regarding Nonprofit Operating and Capacity Building Assistance:

The implementation notice provides these allowances:

May use up to 5% of the allocation to pay operating expenses of CHDOs and other nonprofit organizations that carry out activities with HOME-ARP funds.

May use up to an additional 5% to pay eligible costs related to developing the capacity of eligible nonprofit organizations to successfully carry out eligible activities.

Recommendations:

In light of this additional information, I would like to suggest that a portion of the $2,262,839 of the HOME-ARP Allocation be directed to The Alabaster Jar Project 501c(3). $1,500,000 can be allocated to acquisition and development of non-congregate shelter. These funds would be used to purchase and rehabilitate two single family homes to accommodate 6 to 8 victims of human trafficking. The original goal of accommodating 10 individuals would require approximately $1,900,00 due to the requirement for individual sanitary facilities. $562,839 can be split between The Alabaster Jar Project and other local non-profits for Supportive Services. There is no reason to allocate any of this to City Staff for administration. The non-profits can provide their own administration and report back on the results.

The $200,000 remaining balance can be allocated to the City for Administration and Planning.

Respectfully submitted
Rick Paul
259
Item17.

Attachment "6"
260
Item17.

STAFF REPORT

March 22, 2023
File Number 0830-07

SUBJECT
AMENDMENT TO THE 2021-2029 GENERAL PLAN HOUSING ELEMENT UPDATE (PHG 20-0030)

DEPARTMENT
Development Services Department, Planning Division

RECOMMENDATION
Request that the City Council adopt Resolution No. 2023-31, approving the General Plan Amendment to the 2021-2029 Housing Element of the General Plan and relying on a previously adopted Addendum (Third Addendum) to the FEIR for the 2012 General Plan Update . The Housing Element is one of the mandatory elements of the General Plan and is required by state law to be updated for the 2021 -2029 planning period.

Staff Recommendation: Approval (Development Service: Andrew Firestine, Director of Development Services)
Presenter: Veronica Morones, Principal Planner

FISCAL ANALYSIS
The amendment to the 2021 – 2029 General Plan Housing Element includes two new programs and a number of modifications to programs that must be implemented over the coming years related to housing production and monitoring. Many of these programs will be implemented through use of departmental budget (i.e., staff resources), while others will require other funding sources (grants, bonds, etc.). Due to the nature of a long-range planning program such as the Housing Element, actual funding needs have not been specifically identified at this time, however, staff will ensure that all available external funding sources are pursued.

Approval of the General Plan Amendment to the 2021 – 2029 General Plan Housing Element has no immediate fiscal impact on the City budget.

PREVIOUS ACTION
On February 28, 2023, the Planning Commission voted 6 -0 to recommend City Council ap proval of the amendment to the 2021 -2029 Housing Element. The February 28th Planning Commission staff report is provided under Attachment “1”.
261
Item18.

Prior to the February 28, 2023 meeting, City Council adopted the 2021-2029 Housing Element on August 11, 2021. The August 11th City Council staff report is provided under Attachment “2”.

BACKGROUND
Housing Element Law: The California Legislature has deter mined that a primary state housing goal is to ensure that every resident has a decent home and a suitable living environment. To ensure adequate housing can be developed in a jurisdiction, a Housing Element is required as part of the General Plan. The Housing Element is one of the eight mandatory General Plan elements, as articulated in sections 65580 to 65589.8 of the Government Code (“Housing Element Law”). Pursuant to Housing Element Law, the Housing Element has two main purposes: 1) to provide an ass essment of both current and projected housing needs and constraints in meeting these needs; and 2) to state “goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing.” (Gov’t Code § 65583.) Thus, a Housing Element has become the official “planning” response to the need to provide housing and housing -related services for all economic segments of the community. While part of the General Plan, the Housing Element is upda ted more frequently to ensure its relevancy and accuracy. Housing Element Law requires jurisdictions update their Housing Elements every eight years, commonly referred to as “planning periods” or “cycles.” For the San Diego Association of Governments (“SANDAG”) region, the current planning period is the 6th Cycle which spans 2021 through 2029. In order to comply with Housing Element Law, SANDAG jurisdictions needed to adopt an updated Housing Element no later than 120 calendar days from the statutory date o f April 15, 2021 (i.e., adopt no later than August 13, 2021), and obtain substantial compliance (also referred to as “certification”) through the California Department of Housing and Community Development’s (“HCD”) review process. Typically, compliance fro m HCD would be obtained prior to adoption; however, in the context of the City of Escondido and several other SANDAG jurisdictions, adoption occurred prior to HCD’s review for compliance.

For additional background information regarding Housing Element Law, the 2021-2029 Housing Element Update process, original adoption of the 2021-2029 Housing Element and Third Addendum, as well as the contents of the adopted 2021-2029 Housing Element, refer to Attachments 1 and 2 in chronological order. 2021-2029 Housing Element: In an effort to meet the statutory deadline for the 6th Cycle, the City kicked off the update to the Housing Element in early 2020. Throughout the update process, the City conducted various outreach workshops, office hours, planning commission study sessions, and circulated electronic and print media. State law requires that jurisdictions submit draft Housing Element amendments to HCD for review at least 60 days prior to adoption. Upon completion of the draft 6th Cycle Housing Element, the City submitted the draft for review by HCD on March 26, 2021. On May 25, 2021, the City received a comment letter from HCD identifying two areas of deficiency : 1) Affirmative furthering fair housing pursuant to AB 686, and 2) Suitable sites inventory for development (Gov’t Code § 65583(a)(3)). All public comment letters and responses to comment, including HCD’s comment letters, are under Attachment 3. 262
Item18.

City staff and its consultant team revised the document according to the direction HCD outlined in their May 25th letter. The City resubmitted to HCD on June 17, 2021, which projected HCD’s comment period to end on August 16, 2021. However, the City adopted the draft 2021 -2029 Housing Element on August 11, 2021 to meet the adoption deadline of August 13, 2021. One da y prior to the scheduled City Council adoption date, HCD provided their 60 -day review letter on August 10, 2021. HCD’s August 10th letter detailed the same outstanding topical issues with additional direction for compliance.

In response to HCD’s August 10 th letter, City staff revised the adopted 6th Cycle Housing Element in an effort to comply with the outstanding comments. For more information regarding City staff’s actions and proposed changes, refer to Attachment 1. On August 2, 2022, HCD again provided a comment letter detailing outstanding issues.

On October 18, 2022, the City submitted their final draft revisions of the adopted 2021 -2029 Housing Element to HCD (as detailed under Attachment 1) . On December 8, 2022, HCD provided a letter stating the revisions to the element meet statutory requirements, detailed under Attachment 4. The full revised draft document is provided under Attachment 5 in strikethrough/underline. A clean copy of the incorporated changes is provided under Exhibit “B” of Resolution No. 2023-31.

However, HCD cannot certify the Housing Element until rezoning of sites identified on the Housing Element’s sites inventory occur (i.e., adoption of the East Valley Specific Plan). Assembly Bill (AB) 1398 (Gov’t Code § 65583), which was passed in late 2021 and went into effect on January 1, 2022, requires jurisdictions complete their rezoning efforts in order to obtain certification from HCD. Since the City’s Housing Element was not certified at the time AB 1398 went into effect, the City must comply with the rezoning requirements before HCD can certify the City’s Housing Element.

On January 20, 2023, the City had informal discussions with HCD staff on how to proceed with the statutory compliant revisions reviewed under the October 18, 2022 submittal. HCD staff recommended the City move forward with adoption of the draft revisions and submit for subsequent review by HCD of the adopted Housing Element while the City’s rezoning efforts continue to progress. HCD stated following their guidance would provide a streamlined process for final compliance once rezones are adopted.

The City received additional written public comment prior to the February 28, 2023 Planning Commission meeting, which is provided under Attachment 6.

EVIRONMENTAL REVIEW
The Project relies on a previously adopted Addendum to the FEIR for the 2012 General Plan Update. On August 11, 2021, the City Council adopted the Third Addendum to the 2012 Ge neral Plan Update, Downtown Specific Plan Update and Climate Action Plan Program EIR for the 2021-2029 Housing Element.

The 2012 General Plan Update, Downtown Specific Plan Update and Climate Action Plan Program EIR (“Final EIR”) was certified on May 23, 2012, by the Escondido City Council (SCH #2010071064). The Third 263
Item18.

Addendum accommodated the repeal in its entirety of the 2013 -2021 Housing Element and adoption in full the new text, graphics, and figures comprising the 2021 -2029 Housing Element to the Gener al Plan.

The Third Addendum is provided under Exhibit “C” to draft City Council Resolution No. 2023-31.

Pursuant to CEQA, when taking subsequent discretionary actions in furtherance of a project for which an EIR has been certified, the lead agency is requi red to review any changed circumstances or new information to determine whether any of the circumstances under Public Resources Code section 21166 and CEQA Guidelines section 15162 require additional environmental review. City staff concluded that the EIR fully analyzed and mitigated, where feasible, all potentially significant environmental impacts, if any, that would result from the 2021 -2029 Housing Element, and therefore, no subsequent EIR or mitigated negative declaration was required. On that basis, City staff prepared an Addendum for the changes, pursuant to CEQA Guidelines section 15164.

City staff evaluated the current Project, and all aspects of the changes, in light of the standards for subsequent environmental review outlined in Public Resources Code section 21166 and CEQA Guidelines section 15162. The Project entails revisions to the 2021-2029 Housing Element for compliance with HCD’s requirements for certification that would be covered under the scope and findings of the Third Addendum. The Housing Element is a policy document and the proposed change to such policy document would not, in itself, produce environmental impacts. It consists of additional detailed metrics; incorporation of additional historical context; modification to assumed capacity yields that are within the permitted density thresholds established under the 2012 General Plan Land Use Element; and additional nominal changes throughout the document for consistency clean up. No actual development or land use designation changes are proposed as part of the Project. All future land use development projects would be required to adhere to relevant development standards and design guidelines contained in the City’s zoning ordinance or specific plan to quality of development at each housing site, and would be reviewed for compliance with CEQA at that time. Therefore, City staff conclude the previous environmental document, the Third Addendum, may be used to fulfil the environmental review requirements of the current Project.

The Addendum is appropriate pursuant to CEQA Guidelines section 15164 because only minor changes and additions to the Final EIR are necessary to address the Project changes and no circumstances exist calling for the preparation of a subsequent or supplemental EIR p ursuant to CEQA Guidelines sections 15162 and 15163. The proposed Addendum concluded that there are no substantial changes to the circumstances under which the proposed General Plan amendment is undertaken that would require major revisions to the Final E IR. There is no new information of substantial importance which was not known or could not have been known at the time the Final EIR was certified that shows the proposed General Plan amendment would have significant effects not discussed previously; a su bstantial increase in severity of a previously identified significant impact; mitigation measures or alternatives previously found infeasible that would now be feasible and would substantially reduce one or more significant effects; or mitigation measures or alternatives which are considerably different from those analyzed in the Final EIR which would substantially reduce one or more significant effects on the environment. The 264
Item18.

General Plan amendment would not result in new or more severe impacts beyond those addressed in the Final EIR, and would not meet any other standards requiring further environmental review under State CEQA Guidelines Sections 15162 and 15163. No further analysis is required.

RESOLUTIONS
a. Resolution No. 2023-31
b. Resolution No. 2023-31 Exhibit “A”
c. Resolution No. 2023-31 Exhibit “B”
d. Resolution No. 2023-31 Exhibit “C”

ATTACHMENTS
a. Attachment “1” – February 28, 2023 Planning Commission Staff Report b. Attachment “2” – August 11, 2021 City Council Staff Report c. Attachment “3” – Response to Comments (as of February 2023) d. Attachment “4” – December 8, 2022 HCD Letter
e. Attachment “5” - Revised Draft 2021-2029 Housing Element with strikeout/underline changes (dated September 2022)
f. Attachment “6” – February 28, 2023 Public Comment

265
Item18.

RESOLUTION NO. 2023-31

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ESCONDIDO, CALIFORNIA, APPROVING AN
AMENDMENT TO THE 2021 - 2029 GENERAL PLAN

HOUSING ELEMENT, AND RELIANCE ON AN ADOPTED

ADDENDUM TO AN ADOPTED EIR PREPARED FOR THE

PROJECT

WHEREAS, the State of California requires cities and counties adopt a comprehensive long -term General Plan for the social, physical, and economic development of the City; and WHEREAS, California Government Code section 65588 requires all city and county General Plans to include a Housing Element, and further requires that the Housing Element be updated regularly to reflect current conditions and legal requirements; and
WHEREAS, the content of the Housing Element is mandated by the California Government Code, which also requires review by the California Department of Housing and Community Development (“HCD”) to determine compliance with State law. HCD is the state agency charged with reviewing draft and adopted Housing Elements to determine whether the ele ment substantially complies with the statutory requirements. HCD has published multiple documents to guide local governments through the Housing Element process, all of which are available on its website; and WHEREAS, public participation in the development, adoption and implementation of the housing element is essential to effective housing planning and the City did as follows: engage with the community, including organizations that represent lower -income and special needs households; and comply with Government Code Section 65585(b); and
266
Item18.

WHEREAS, the City of Escondido (“City”) is the lead agency, pursuant to the California Environmental Quality Act (Public Resources Code § 21000 et seq.) (“CEQA”) and the CEQA Guidelines (14 California Code of Regulations § 15000 et seq.), for the 2021-2019 Housing Element Update; and WHEREAS, the 2021 -2029 General Plan Housing Element update is considered a "Project" as defined by the California Environmental Quality Act, Public Resources Code Section 21000 et seq.; and WHEREAS, on May 23, 2012, the City Council certified the Final Environmental Impact Report for the 2012 General Plan Update (SCH # 20100716054) (“FEIR”) for the 2012 Escondido General Plan Update, Downtown Specific Plan Update, and Climate Action Plan; and WHEREAS, pursuant to CEQA, when taking subsequent discretionary actions in furtherance of a project for which an EIR has been certified, the lead agency is required to review any changed circumstances to determine whether any of the circumstance s under Public Resources Code section 21166 and CEQA Guidelines section 15162 require additional environmental review; and WHEREAS, City staff evaluated the environmental impact of the proposed modifications to the Project in light of the standards for subsequent environmental review outlined in Public Resources Code section 21166 and CEQA Guidelines section 15162; and
WHEREAS, based on this evaluation, staff concluded that the EIR had fully analyzed and mitigated, where feasible, in compliance with CEQA, all potentially significant environmental impacts, if any, that would result from the Project modifications, that the impacts to the environment as a result of the modifications are consistent with and would not create substantial new or increased impacts beyond those that were evaluated in the EIR, and that, therefore, no subsequent EIR or mitigated negative declaration is now required; and
267
Item18.

WHEREAS, as a result of the proposed modifications to the Project, and to document staff’s evaluation of the enviro nmental impact of said modifications, staff prepared Addendum #3 to the Final EIR pursuant to CEQA Guidelines section 15164; and
WHEREAS, on August 11, 2021, the City Council adopted the Third Addendum to the FEIR, and the 2021-2029 Housing Element for the sixth cycle planning period; and WHEREAS, the Project relies on the previously adopted Third Addendum to the FEIR; and WHEREAS, the 2021-2029 Housing Element Update was adopted by City Council on August 11, 2021, and;
WHEREAS, the City’s share of the regional housing need for the 2021-2029 Regional Housing Need Allocation (“RHNA”) period is allocated by the San Diego Association of Governments based on several factors including recent growth trends, income distribution, and capacity for future growth. Each local government must demonstrate that it has planned to accommodate all its regional housing need allocation in its Housing Element. Escondido’s share of regional future housing needs is a total of 9,607 new units for the period of April 15, 2021, to April 15, 2029; and WHEREAS, the draft 2021 -2029 Housing Element Update has been prepared to identify enough land to meet the RHNA; and
WHEREAS, Government Code Section 65583.2(b)(3) allows for the inventory of sites identified for potential residential development to include non-vacant and underutilized sites with an explanation and methodology for determining the realistic buildout potential of these sites within the planning period; and
268
Item18.

WHEREAS, if a housing element relies on non -vacant sites to acc ommodate 50% or more of its RHNA for lower income households, the nonvacant site’s existing use is presumed to impede additional residential development, unless the housing element describes findings based on substantial evidence that the use will likely be discontinued during the planning period; and WHEREAS, the 2021 -2029 Housing Element relies upon nonvacant sites to accommodate more than 50% of the RHNA for lower-income households, and
WHEREAS, the City Council finds, based on substantial evidence, that the use of said nonvacant sites is likely to be discontinued during the planning period as substantiated in the 2021 -2029 Housing Element; and
WHEREAS, the Planning Commission reviewed working drafts of the 2021-2029 Housing Element Update and discussed its content or related scope at public meetings on March 23, April 13, April 27, June 8, June 22, July 13, 2021, and May 10, 2022; and
WHEREAS, Government Code Section 65585 provides that a city or county must submit a draft Housing Element to HCD prior to the adoption of a Housing Element, and that HCD shall review the draft and provide written findings as to whether the draft substantially complies with the requirements of the Housing Element Law; and
WHEREAS, City staff submitted the draft 2021-2029 Housing Element Update to HCD for comment on March 26, 2021, June 17, 2021, June 2, 2022, and October 18. 2022; and WHEREAS, HCD submitted written comments to the City on May 25, 2021, August 10, 2021, August 2, 2022, and December 8, 2022, and stated in their December 8, 2022, letter the Housing Element Update would meet the statutory requirements of law in its current draft form; and 269
Item18.

WHEREAS, HCD stated in their December 8, 2022, letter that the Housing Element Update cannot be found in full compliance until the City completed the necessary rezones to accommodate the shortfall of sites for the City’s above-moderate and moderate units through the adoption of the East Valley Specific Plan; and
WHEREAS, on January 20, 2023, HCD recommended the City move forward with adopting the revisions to the 2021 -2029 Housing Element so as to formally submit for HCD’s review of an adopted housing element while the City’s rezoning effort continues to progress; and WHEREAS, all evidence of records, the 2021 -2029 Housing Element Update, staff reports, correspondence, and Addendum #3 are on file in the offices of the City of Escondido Planning Division and the offices of the City Clerk and constitute the record for making the decision to approve the Project; and WHEREAS, the City Council has reviewed and considered the information, findings, and conclusions contained in Addendum #3 including, without limitation, the EIR and supporting documents; and
WHEREAS, the Planning D ivision studied the Application, performed necessary investigations, prepared a written report, and hereby recommends approval of the Project shown in Exhibits “B” and “C” which are attached hereto and made a part hereof by this reference as though fully set forth herein; and WHEREAS, approving the Project would modify the 2021 -2029 Housing Element and adopt new text, graphics, and figures as shown in Exhibit “B;” and WHEREAS, prior to adopting or amending a General Plan, Government Code section 65355 requires the legislative body to hold at least one public hearing, notice of which shall be given pursuant 270
Item18.
to Government Code section 65090 and in accordance with City and State public noticing requirements; and
WHEREAS, City staff provided public notice of the housing element update in accordance with City and State public noticing requirements; and
WHEREAS, the Planning Division scheduled a duly noticed public hearing regarding the Project before the Planning Commission on February 28, 2023, at which inte rested persons were given the opportunity to appear and present their views with respect to said Project. Following said public hearing, the Planning Commission adopted Resolution No. 2023-05, recommending that the City Council approve the Project; and
WHEREAS, on March 22, 2023, the City Council of the City of Escondido did hold a duly noticed public hearing as prescribed by law. At said hearing, this City Council received and considered the reports and recommendations of the Planning Commission and City staff, and gave all persons full opportunity to be heard and to present evidence and testimony respecting said matter. Evidence was submitted to and considered by the City Council, including, without limitation:
a. Written information including plans, stu dies, written and graphical information, and other material, submitted as part of the Project;
b. Oral testimony from City staff, interested parties, and the public; c. The staff report, dated March 22, 2023 , with its attachments as well as City staff’s recommendation on the Project, which is incorporated herein as though fully set forth herein; and d. Additional information submitted during the public hearing; and 271
Item18.

WHEREAS, the City Council has reviewed and considered the information, findings, and conclusions contained in Addendum #3, including without limitation the FINAL EIR and supporting documents; and
WHEREAS, approving the Project would modify in the 2021-2029 Housing Element by amending text, graphics, and figures within the 2021-2029 Housing Element Update to the General Plan as outlined in Exhibit “B” of Resolution No. 2023-31; and
WHEREAS, an original copy of the 2021 -2029 General Plan Housing Element General Plan Amendment, Addendum #3, and all other related Project materials are on file in the Office of the City Clerk, with a copy of each document submitted to the City Council for its consideration. The City Clerk, whose office is located at 201 North Broadway, Escondido CA 92025, is hereby designated as the custodian of the documents and o ther materials which constitute the record of proceedings upon which the City Council's decision is based, which documents and materials shall be available for public inspection and copying in accordance with the provisions of the California Public Records Act.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Escondido, California as follows:

1. That the above recitations are true.

2. That t hrough reliance on the previously adopted Addendum #3 to the Final EIR, all requirements of CEQA have been met.

3. That the Project satisfies the requirements of the state Planning and Zoning Law.

4. That the amendment to the 2021-2029 Housing Element of the General Plan is consistent with the Escondido General Plan because all General Plan Chapters w ere reviewed as part of the amendment drafting process to ensure consistency.
272
Item18.

5. That, after consideration of all evidence presented, and studies and investigations made by the City Council and on its behalf, the City Council makes the substantive Findings of Fact and determinations attached hereto as Exhibit “A,” relating to the information that has been considered.

6. That, considering the Findings of Fact and applicable law, the City Council hereby approves the General Plan Amendment to the 2021 – 2029 General Plan Housing Element, attached hereto as Exhibit “B,” and relies on the Addendum #3 to the Final EIR, attached hereto as Exhibit “ C,” for the purpose of compliance with CEQA.

7. That the Planning Division is hereby directed to file a copy of the General Plan Amendment to the 2021 – 2029 General Plan Housing Element with the California Department of Housing and Community Development.

273
Item18.

Resolution No. 2023-31
Exhibit “A”

Page 1 of 4 ends

EXHIBIT “A”
PHG 20-0030

FACTORS TO BE CONSIDERED / FINDINGS OF FACT

Housing Element Update Determinations:

1. The State of California requires that cities and counties adopt a comprehensive long-term General Plan for the physical, social, and economic growth of the agency (Government Code section 65300). The Housing Element i s one element of a community’s G eneral Plan. Following standard planning methodology, each element normally will consist of three parts: 1) an analysis of needs, resources, and constraints; 2) a declaration of goals and quantified objectives; and 3) programs addressing the needs and constraints and devised to achieve the goals and objectives.

2. The Housing Element is one of the required elements of the General Plan (Government Code section 65302). Detailed requirements for the content of the Housing Element are included in Article 10 .6 of Chapter 3 of Division 1 of Title 7 of the Go vernment Code, commencing with section 65580.3. The Housing Element is the only part of the General Plan that has more rigid standards and that must be reviewed and updated according to a fixed schedule. Escondido’s Housing Element was last updated in 2012 for the period of January 1, 2013, through April 30, 2021. All cities and counties are required to update their Housing Element every eight years for State certification.

3. The City’s 2013-2021 Housing Element no longer satisfies statutory requirements and the plan needs to be updated to meet the statutory requirements of Housing Element Law. To comply with the intent of the California Legislature, the Housing Element must address all recent housing legislation adopted in response to growing housing needs and the State’s housing crisis. Consistent with General Plan Review and Amendment Policy 17.5, required updates to the Housing Element pursuant to Government Code section 65302 provide substantial documentation that such amendment is appropriate for the general public welfare.

4. Given the City’s relatively built-out character, most of the goals and policies in the existing 2012 General Plan continue to represent the City’s position on g rowth and development issues. Scarcity of land with adequately zoned capacity is a significant contributor to increased land prices and housing development costs. Despite these limitations, the 2021-2029 Housing Element must provide goals, policies, and programs demonstrating how Escondido will meet its existing and future housing needs for all income levels.

5. Although the City does not build the housing, the Housing Element does create a plan and regulatory framework, which provides opportunities for the private sector to do so, where market conditions determine when and where housing is built.

274
Item18.

Resolution No. 2023-31
Exhibit “A”

Page 2 of 4 ends

6. An effective H ousing Element provides the necessary conditions for conserving, preserving and producing an adequate supply of housing affordable at a variety of income levels and provides a vehicle for establishing and updating housing and land -use strategies to reflect changing needs, resources, and conditions. Among other things, the Housing Element establishes a jurisdiction’ s strategy to plan for and facilitate the development of housing over the eight-year planning period by providing an inventory of land adequately zoned or planned to be zoned for housing and programs to meet the needs of the community. The Housing Element also represents a policy statement about how a city or county will continue to strive toward maintaining and enhancing housing opportunities while also preserving its desirability as a place in which to live, work and play. Studies show that access to safe, decent, healthy, and affordable homes can have an impact on the health outcomes of occupants. The maintenance, improvement, and development of affordable (or relatively affordable) housing options may improve health outcomes by:

 freeing up family resources for nutritious food and expenditures;  providing families with greater residential stability, which may reduce stress, and related adverse health outcomes;
 increasing the control that homeowners or renters have over their physical environment and minimizing the disruptions associated with frequent, unwanted moves;
 allowing victims of domestic violence or abuse to escape, which can lead to improvements in mental and physical health and safety;
 alleviating overcrowding to reduce potential exposure to stressors and infectious disease, leading to more space per individual and better social distancing practices, which can lead to improved physical and mental health;  enhancing access neighborhoods of opportunity to increase access to selective amenities and generate important health benefits based on the social and physical environment in which the home is located;
 linking supportive services to home occupancy to enable target populations and others with mobility limitations to remain in their homes;  improving the quality of housing to address indoor air quality, home safety and other environmental pollutants such as the presence of mold, asbestos, or lead; and
 improving the quality of housing to be more energy efficient in order to lower monthly energy costs and improve home comfort and indoor environmental quality.

7. The revised 2021-2029 Housing Element continues to analyze existing and potential constraints to the production of affordable housing. It includes an inventory of resources available to accommodate the identified housing needs; assesses the effectiveness and appropriateness of existing City housing programs; and sets forth crafts a housing strategy to address the housing issues related to housing availability, adequacy, and affordability.

275
Item18.

Resolution No. 2023-31
Exhibit “A”

Page 3 of 4 ends

8. The inventory of resources available to accommodate the identified housing needs are deemed suitable. The inventory of sites identified for potential residential development include reliance on non-vacant and underutilized sites for 50% or more of the City’s RHNA for lower income housholds. The revised 2021-2029 Housing Element describes findings that such uses will likely be discontinued, based on substantial evidence. Specifically, the revised 2021 -2029 Housing Element provides an explanation and methodol ogy for determining realistic buildout potential of these sites within the planning period based on the following factors: land-to-improvement ratio, building age, and net new unit ratio.

9. The revised 2021-2029 Housing Element would not be detrimental to the public interest, health, safety, convenience, or welfare of the City because the Project will benefit the community by encouraging the City’ participation in programs that provide home ownership opportunities for individuals and families; facilitating the development of housing for all income levels for the 2021-2029 planning period. The revised 2021-2029 Housing Element continues to identify housing goals and policies to address the City’s fair share of the regional housing needs, while encouraging improvement and enhancement of existing residential neighborhoods.

10. In addition to the particular Government Code section s cited above and within both the February 28, 2023 and July 27, 2021, Planning Commission Staff Reports, other sections call for a local jurisdiction’s zoning and density laws to be structured to ensure that any changes to zoning or density designation result in no net loss of density or an inability to accommodate its fair share of housing needs. The manner in which Escondido meets this requirement is described in detail in the Housing Resources Section of this Housing Element Update.

11. The California Department of Housing and Community Development (“HCD”) plays the critical role of reviewing every jurisdiction’s H ousing Element to determine whether it complies with state law and then submits written findings back to each local government.

HCD’s approval is required before a local government can adopt its Housing Element as part of its overall Gener al Plan. Revisions to the draft Housing Element were made in response to HCD’s correspondence (May 25, 2021) and revisions to the adopted Housing Element were made in response to HCD’s most recent correspondence (August 10, 2021, June 2, 2022, and August 2, 2022) in order to be deemed compliant with State Housing Element law, as amended, and all other federal, state, and local requirements, as necessary to demonstrate compliance with Sta te law and gain State certifica tion. As of HCD’s most recent correspon dence (December 8, 2022) the proposed revisions to the 2021-2029 Housing Element comply with statuatory requirements.

12. Once adopted, the revised 2021-2029 Housing Element will have a binding effect on the City. Most other planning actions such as adoption of a specific plan or zoning ordinance, approval of a subdivision map, etc. must be consistent with the General Plan. Known as the “consistency d octrine,” it gives the General P lan, including the revised 2021-2029 Housing Element, the controlling force of law.
276
Item18.

Resolution No. 2023-31
Exhibit “A”

Page 4 of 4 ends

13. General Plan Consistency: The City is able to meet its RHNA requirement without any changes to General Plan designations or densities allowed. New and revised policies are included in the revised 2021-2029 Housing Element , updating existing major strategies and policies from the 2013-2021 Housing Element. All such draft strategies and policies build upon, augment, or refine existing strategies and policies of the current General Plan, and they introduce no new policies that would conflict with existing General Plan elements having the most direct relation to allowable use and development, such as land use , circulation, or safety element policies. Similarly, the 2021-2029 Housing Element did not eliminate any existing strategies for its programmatic approach to housing, and therefore remains consistent with the other Chapters of the General Plan.

277
Item18.

City of Escondido
Sixth Cycle Housing Element
2021-2029
Adopted by
City Council August 11, 2021
Revised September 2022
Com
munity Development Department
201 North Broadway
Escondido, CA 92025
Resolution No. 2023-31
Exhibit "B"
1 of 291
278
Item18.

Table of Contents

1. Introduction ................................................................................................................................ 1 Escondido’s General Plan Vision ............................................................................................. 1 Escondido’s Housing Element Outline ..................................................................................... 1 Community Context .................................................................................................................. 2 Public Participation ................................................................................................................... 3 Data Sources and Methodology ............................................................................................... 7 General Plan Consistency ........................................................................................................ 7

2. Ho
using Needs Assessment ..................................................................................................... 8 Population Characteristics ........................................................................................................ 8 Economic Characteristics ....................................................................................................... 11 Household Characteristics ..................................................................................................... 15 Housing Problems .................................................................................................................. 19 Special Needs Groups ........................................................................................................... 23 Housing Stock Characteristics ............................................................................................... 36 Housing Cost and Affordability ............................................................................................... 42

3. A
ffordable Housing .................................................................................................................. 47 Publicly Assisted Housing ...................................................................................................... 47 Preservation of At-Risk Housing ............................................................................................ 48

4. H
ousing Constraints ................................................................................................................ 50 Market Influences ................................................................................................................... 50 Governmental Constraints ...................................................................................................... 54 Environmental and Infrastructure Constraints ........................................................................ 82

5. H
ousing Resources ................................................................................................................. 86 Regional Housing Needs Assessment ................................................................................... 86 Credits Toward RHNA ............................................................................................................ 86 Development Trends, Yields, and Realistic Capacity for Housing ......................................... 87 Density and Affordability Levels ............................................................................................. 92 Methodology for Identifying Sites to Accommodate the RHNA .............................................. 93 Sites Inventory and Residential Development Potential ......................................................... 98 No Net Loss .......................................................................................................................... 107 Ability to Meet RHNA ............................................................................................................ 108 Financial Resources ............................................................................................................. 109 Administrative Capacity ........................................................................................................ 111 Opportunities for Energy Conservation ................................................................................ 111 Resolution No. 2023-31
Exhibit "B"
2 of 291
279
Item18.

6. Housing Plan .......................................................................................................................... 113 State Housing Goals ............................................................................................................ 113 City Housing Goals, Policies, and Programs ........................................................................ 113 Summary of Quantified Objectives ....................................................................................... 137 Appendix A
: RHNA Credits .......................................................................................................... A-1 Appendix B: Sites Inventory ........................................................................................................ B-1 Appendix C: Public Participation ................................................................................................ C-1 Appendix D: Review of Past Accomplishments ......................................................................... D-1 Appendix E: Affirmatively Furthering Fair Housing .................................................................. E-1

Resolution No. 2023-31
Exhibit "B"
3 of 291
280
Item18.

List of Tables
Table 1: Population Growth (2000-2020) ............................................................................................ 8 Table 2: Age Distribution (2010-2018) .............................................................................................. 10 Table 3: Race and Hispanic Origin (2018) ........................................................................................ 11 Table 4: Employment Characteristics - (2010-2018) ......................................................................... 13 Table 5: Mean Salary by Occupation - San Diego Region (2020) .................................................... 14 Table 6: Changes in Household Types (2010 – 2020) ...................................................................... 16 Table 7: Household Size (2018) ........................................................................................................ 16 Table 8: Median Household Income (2014-2018) ............................................................................. 18 Table 9: Income Distribution (2000-2018) ......................................................................................... 19 Table 10: Housing Assistance Needs of Lower Income Households (2017) .................................... 20 Table 11: Overcrowded Housing Units (2010-2018) ......................................................................... 21 Table 12: Household Cost Burden (2017) ......................................................................................... 22 Table 13: Cost Burden by Tenure and Income Level (2017) ............................................................ 22 Table 14: Special Needs Groups ...................................................................................................... 23 Table 15: Inventory of Services for Special Needs Populations ....................................................... 24 Table 16: Persons Age 65 and Older (2018) .................................................................................... 25 Table 17: Elderly Households by Tenure and Income Level (2017) ................................................. 26 Table 18: Disabilities Tallied by Age and Type (2018) ...................................................................... 27 Table 19: Large Households (2018) .................................................................................................. 29 Table 20: Large Households by Tenure and Income Level (2017) ................................................... 30 Table 21: Single Parent Households (2018) ..................................................................................... 31 Table 22: Extremely-Low-Income Households by Tenure and Type ................................................ 32 Table 23: Homelessness in North County Cities (2020) ................................................................... 34 Table 24: Housing Unit Growth (2000 to 2020) ................................................................................. 37 Table 25: Projected Housing Units (2020-2040) ............................................................................... 37 Table 26: Projected Housing Unit by Type (2020-2040) ................................................................... 38 Table 27: Tenure of Occupied Housing Units (2010-2018) ............................................................... 39 Table 28: Household Size by Tenure (2018) .................................................................................... 39 Table 29: Vacancy Rates and Property Age (2019) .......................................................................... 40 Table 30: Year Housing Built (2018) ................................................................................................. 41 Table 31: Substandard Units (2018) ................................................................................................. 41 Table 32: C
hanges in Median Home Sale Prices (2020) .................................................................. 42 Table 33: Average Monthly Rent (2019) ........................................................................................... 44 Table 34: Affordable Housing Cost (2020) ........................................................................................ 46 Table 35: Inventory of Assisted Rental Housing Projects ................................................................ 47 Table 36: Disposition of Home Loans (2017) .................................................................................... 51 Table 37: Project Development Yield Trends by Zoning ................................................................... 53 Table 38: Assumed Realistic Capacities by Density range ............................................................... 54 Table 39: Land Use Designations Permitting Residential Use .......................................................... 55 Table 40: Downtown Specific Plan Residential Development Standards ......................................... 58 Table 41: East Valley Specific Plan Land Use Designations ............................................................ 59 Table 42: Residential Development Standards ................................................................................. 64 Table 43: Escondido Residential Parking Requirements .................................................................. 66 Table 44: Use Regulations for Residential Zones ............................................................................. 67 Table 45: Planning and Development Fees Regional Comparison (2020/21) .................................. 75 Table 46: Total Fee Comparisons (2019-2020) ................................................................................ 76 Table 47: Processing Time by Development Type ........................................................................... 79 Table 48: Processing Time by Process / Permit ............................................................................... 81 Table 49: RHNA Allocation by Household Income (2021-2029) ....................................................... 86 Table 50: Credits Toward RHNA ....................................................................................................... 87 Table 51: Affordable Housing Yields ................................................................................................. 89 Resolution No. 2023-31
Exhibit "B"
4 of 291
281
Item18.

Table 52: Site Capacity Estimation (EVSP) ...................................................................................... 91 Table 53: Site Capacity Estimation (Non EVSP) ............................................................................... 92 Table 54: Affordability by Density ...................................................................................................... 93 Table 55: ADU Affordability Level (2018-2020) ............................................................................... 107 Table 56: Average ADU Affordability Level (2018-2020) ................................................................ 107 Table 57: Estimated Sixth Cycle ADU Production .......................................................................... 107 Table 58: No Net Loss Buffer Estimate ........................................................................................... 108 Table 59: Summary of RHNA Status .............................................................................................. 109 Table 60: Summary of Quantified Objectives .................................................................................. 137

Table A- 1: RHNA Credits – Entitled Units ...................................................................................... A-1 Table A- 2: RHNA Credits - Approved Projects .............................................................................. A-1 Table A- 3: Projects Under Review ................................................................................................. A-2

Table D- 1: Review of Past Accomplishments ................................................................................ D-1

Table E- 1: Racial/Ethnic Dissimilarity Index ................................................................................... E-3 Table E- 2: Domains and List of Indicators for Opportunity Maps ................................................. E-20 Table E- 3: Opportunity Map Scores by Census Tract .................................................................. E-30 Table E- 4: Opportunity Indicators in Escondido and San Diego County ...................................... E-33 Table E- 5: Any Housing Problem by Tenure and Race ............................................................... E-35 Table E- 6: Housing Problems for Elderly and Large Households by Tenure ............................... E-35 Table E- 7: Cost Burden by Tenure and Race .............................................................................. E-36 Table E- 8: Cost Burden for Elderly and Large Households by Tenure ........................................ E-36 Table E- 9: Location of Sites by TCAC Designation ..................................................................... E-56

List of Figures
Figure 1: Age Composition (2018) .................................................................................................... 10 Figure 2: Households by Income Categories (2013-2017) ............................................................... 17 Figure 3: Household Income Distribution (2014-2018) ..................................................................... 18 Figure 4: Housing Types (2020) ........................................................................................................ 38 Figure 5: Median Home Price (2020) ................................................................................................ 42 Figure 6: Downtown Escondido Specific Plan – Residential Densities ............................................. 57

Appenidx B: Listing of Parcels for City of Escondido RHNA ........................................................... B-2 Appenidx B: Map of City of Escondido Housing Sites ................................................................... B-56 Appenidx B: Map of City of Escondido Housing Sites – Downtown Sites ..................................... B-57 Appenidx B: Map of City of Escondido Housing Sites – East Valley Sites .................................... B-58 Appenidx B: Map of City of Escondido Housing Sites – South Centre City Sites ......................... B-59 Figure B-1: Site Typology .............................................................................................................. B-60

Figure E-1: Areas of Minority Concentration in Escondido (2018) .................................................. E-5 Figure E-2: Predominant Populations- White and Hispanic Majorities ............................................ E-6 Figure E-3: Change in Racial Composition, 1990-2015 .................................................................. E-7 Figure E-4: Distribution of Persons with Disabilities ........................................................................ E-9 Figure E-5: Percent Population of Adults Living Alone ................................................................. E-11 Figure E-6: Percent Population of Adults Living with Spouse ....................................................... E-11 Figure E-7: Percent Children in Married Households .................................................................... E-12 Resolution No. 2023-31
Exhibit "B"
5 of 291
282
Item18.

Figure E-8: Percent Children in Single Female-Headed Households ........................................... E-12 Figure E-9: Low and Moderate Income (LMI) Areas in the County ............................................... E-14 Figure E-10: Low and Moderate Income (LMI) Areas in Escondido ............................................. E-15 Figure E-11: Distribution of Housing Choice Vouchers in Escondido ........................................... E-17 Figure E-12: Affordability Index in Escondido ............................................................................... E-18 Figure E-13: Poverty Status in Escondido .................................................................................... E-19 Figure E-14: 2021 TCAC/HCD Opportunity Map .......................................................................... E-21 Figure E-15: Mission Park Community .......................................................................................... E-22 Figure E-16: Racially and Ethnically Concentrated Areas of Poverty (R/ECAPs) - SD County .... E-24 Figure E-17: Racially and Ethnically Concentrated Areas of Poverty (R/ECAPs) - Escondido ..... E-25 Figure E-18: Racially/Ethnically Concentrated Areas of Affluence (RCAAs) - Escondido ............ E-27 Figure E-19: Overpayment by Renter and Owner Households ..................................................... E-38 Figure E-20: Distribution of Overcrowded Households ................................................................. E-40 Figure E-21: Median Year Structure Built ..................................................................................... E-41 Figure E-22: Sensitive Communities ............................................................................................. E-42 Figure E-23: RHNA Sites and Minority Population by Census Block Group ................................. E-46 Figure E-24: RHNA Units and City Acreage Comparison by Minority Population ......................... E-47 Figure E-25: RHNA Sites and Population with a Disability by Census Tract ................................ E-48 Figure E-26: RHNA Units and City Acreage Comparison by Disability Status .............................. E-49 Figure E-27: RHNA Sites and Children in Married-Couple Households by Census Tract ............ E-50 Figure E-28: RHNA Sites and Low to Moderate Income Population by Census Block Group ...... E-51 Figure E-29: RHNA Units and City Acreage Comparison by Low to Moderate Income ................ E-52 Figure E-30: RHNA Sites and R/ECAP Areas .............................................................................. E-53 Figure E-31: RHNA Sites and TCAC Designation ........................................................................ E-55 Figure E-32: RHNA Units and City Acreage Comparison by TCAC Composite Score ................. E-55 Figure E-33: RHNA Sites and CalEnviroScreen 4.0 Percentile Scores ........................................ E-57 Figur
e E-34: RHNA Units and City Acreage Comparison by Cal EnviroScreen 4.0 Percentile .... E-58 Resolution No. 2023-31
Exhibit "B"
6 of 291
283
Item18.

1. Introduction
The Housing Element is a component of the General Plan that assesses the housing needs of all economic segments of the City of Escondido. In addition, the Housing Element defines the goals and policies that will guide the City’s approach to resolving those needs and recommends a set of programs that would implement policies over the next few years.

State law requires that all cities adopt a Housing Element and with prescribed details and content.

This Housing Element responds to those requirements, and responds to the special characteristics of the City’s housing environment. The Element incorporates the most current data readily available at the time of writing and an evaluation of the Housing Element adopted in 2013. Also included are assessments of the current and potential housing actions, and resources of the private sector and all levels of the public sector.

This Escondido Housing Element is prepared for the 2021-2029 update (Sixth cycle) for jurisdictions in the San Diego Association of Governments (SANDAG) region.

The Housing Element’s Purpose
The Housing Element is concerned with specifically identifying ways in which the housing needs of existing and future residents can be met. This Housing Element covers the planning period of April 15, 2021 to April 15, 2029, and identifies strategies and programs that focus on:
• Conserving and improving existing affordable housing; • Providing adequate housing sites for meeting the projected housing demand; • Assisting in the development of affordable housing;
• Removing governmental and other constraints to housing development; and • Promoting equal housing opportunities.

Escondido’s General Plan Vision
The City of Escondido envisions itself becoming the vibrant and dynamic cultural, economic, and recreational hub of inland North San Diego County. This vision calls for an outstanding quality of life with exemplary public services and a safe environment that support a wide-range of housing types; quality educational facilities; desirable workplaces offering diverse employment opportunities; convenient transportation options, and unique cultural/recreational amenities. A lively, active downtown with unique and exciting land uses and a revitalized surrounding urban core are the focus for appropriate higher -intensity infill developments that maximize opportunities for alternative transportation, and strengthen pedestrian linkages. Planning for quality, managed growth ensures the adequate provision of infrastructure, preserves perimeter viewsheds, respects and enhances the character of established single-family neighborhoods, and assures long-term sustainability for Escondido’s future. This Housing Element provides policies and programs that will allow the City to achieve this vision.

Escondido’s Housing Element Outline
The 2021-2029 Escondido Housing Element consists of the following major components:

Resolution No. 2023-31
Exhibit "B"
7 of 291
284
Item18.
• Introduction: An overview of the purpose and contents of the Housing Element. • Housing Needs Assessment: An analysis of the demographic and housing characteristics and trends.
• Housing Constraints: A review of potential market, governmental, and environmental constraints to meeting the identified housing needs.
• Housing Resources: An evaluation of resources available to address housing goals. • Housing Plan: A strategy to address the identified housing needs given the City’s constraints and resources.

An evaluation of the City’s achievements in implementing the 2013 Housing Element is also included in the appendix.

Community Context
Escondido is located in the North Central portion of San Diego County. Its natural setting, Mediterranean climate, rolling hills, and location at the intersection of two state highways provide a unique and attractive living environment. This setting has a substantial impact on the employment characteristics as well as the City’s economic base. These conditions attract growth, which in turn creates a competitive residential atmosphere.

Escondido has experienced significant residential development since 1970. It is crucial that public services expand to meet the needs of the increasing population. These services include sewers, streets, police, fire, schools, and recreation. It is also important to locate housing to be accessible to other functions such as employment, services, shopping, and transportation.

In 2020, the City population was 153,008, an increase of about six percent in the last ten years.

During this same period, the housing stock increased by approximately two percent. The growth in population has, in turn, increased diversity within the City. From 2010 to 2020, Escondido became more racially and ethnically diverse. The population of White residents has continued to decrease from 68% in 2000 to 35% in 2020. Meanwhile, the City’s population of Hispanic residents has increased from 39% to 52%. The City’s Asian population has also increased from four percent in 2000 to seven percent in 2020.

The 2018 American Community Survey (ACS) Five-Year estimates reported an increase in average household size from 3.06 persons per household in 2010 to 3.21 persons in 2018. This trend can be partially attributed to the increase in families with children and the shift in racial and ethnic composition, since many Asian and Hispanic households are typically larger than White households.

Escondido offers a mix of housing types. Single-family homes make up about 57 % of the housing stock, the multi-family share is about 36%, and mobile homes comprise the remaining eight percent.

Over three-fourths (76%) of Escondido’s housing stock is over 30 years old (built before 1990), with approximately 10% of the housing stock being built before 1969 (over 50 years old).

The median price of a single-family home in Escondido is estimated at about $540,000 as of 2019.

Apartment rents range from $1,490 for a one-bedroom apartment to $2,273 for a three-bedroom apartment. Lower income households in the City are unable to afford homeownership and affordable rental options are also limited. The City has been actively addressing its housing issues by developing affordable housing, improving the existing housing, and providing assistance to households in need.

Resolution No. 2023-31
Exhibit "B"
8 of 291
285
Item18.

Public Participation
The City of Escondido envisions itself as a sustainable community through various environmental, economic, health, and social equity initiatives. T he ability to increase housing production and preservation is a key factor to a sustainable future. To accomplish this, the Housing Element must provide goals, objectives, policies, and implementation programs demonstrating how Escondido will meet its existing and future housing needs for all income levels. Although the City does not build the housing, the Housing Element does create a plan and regulatory framework, which provides opportunities for the private sector to do so, where market conditions determine when and where housing is built. In order to make sure that the City develops a good “housing” strategy, the City needs to identify all types of community-supported solutions.

The City was awarded Senate Bill (“SB”) 2 grant funding in 2020 to develop three different hosing studies and plans: a Housing Element Update, a Sector Feasibility Study, and an East Valley Specific Plan. These three housing studies and plans will be linked together, through a common work program theme, called the “Housing and Community Investment Study.” The coordination of the three studies helps identify a comprehensive vision for maintaining, preserving, and developing housing to address Escondido’s quality of life needs. Through the consolidated work program, the City undertook a strategically focused public involvement process to help engage residents, businesses, and other community members in the development of three different housing studies and plans. Since the Housing Element, Sector Feasibility Study, and East Valley Specific Plan are related to each other, consolidating the work program in terms of project management into one project helped ensure that public participation-related activities and tasks were grouped to be more efficient. This in turn led to more effective public outreach and more-informed community engagement.

Components of the Housing and Community Investment Study The Housing and Community Investment Study (“HCIS”) identifies the City’s housing needs and establishes clear goals and objectives to inform future housing decisions. This important effort will guide Escondido’s future housing policy creation and implementation. It will address things like how best to increase or accommodate affordability, substandard housing rehabilitation, existing demand for new housing, eliminating housing development constraints, and fair housing.

The Housing Element Update identifies:
• Policies for new housing construction, rehabilitation and conservation of the existing affordable housing stock.
• The current Housing Element sets a number of ambitious goals to increase housing production and preservation, ensure neighborhood livability, prevent discrimination, and end homelessness. This foundation has allowed Escondido to advance a progressive set of programs and initiatives to develop and preserve both market-rate and affordable housing.

This update presents an opportunity to build on that foundation as we continue to address the housing crisis.

The Sector Feasibility Study identifies:
• Market information about how new development could be financed, and assess if, and to what degree, housing development is financially/economically feasible under rising construction, land, and regulatory costs.

Resolution No. 2023-31
Exhibit "B"
9 of 291
286
Item18.

East Valley Specific Plan identifies:
• A comprehensive planning and zoning scheme for an area just east of the former, downtown hospital campus.
• Opportunity sites ready for development. The area map shows the location of potential re- visioning.
• New ways to accommodate streamlined housing with community-supported solutions.

Public Participation of the HCIS
A goal of the HCIS was to ensure that the future housing accommodation strategies embraced the distinct identity and character of Escondido where one can live their entire life with housing for all ages, incomes and abilities. For that purpose, a Public Participation Plan was developed to help create meaningful outreach engagement activities. During the course of the Study, the City work ed with development experts, community-based interest groups, stakeholders, and the community at large to achieve the best plan possible through engagement tools including meetings, community workshops, and online engagement. Information about the first and second phase of outreach is available and provided on the City’s website (https://www.escondido.org/hcis.aspx ) and summarized
below. Additional information on the City’s public participation is detailed in Appendix C.

First Phase of Outreach
The first phase of outreach of the HCIS focused on developing background information and feedback on overarching housing issues and concerns:
• Direct mailers, electronic e-mail blasts, and electronic flyers in English and Spanish • Planning Commission and City Council meetings and status updates • July 23, 2020 virtual workshop (English and Spanish services) • Presentation Videos posted online (English and Spanish recordings) • For Residents:
o East Valley Specific Plan downloadable comment forms: English and Spanish o East Valley Specific Plan online form to submit comments o Housing Element online survey (July 2020 - December 2020): English and Spanish • For Businesses:
o East Valley business survey (August 2020 - September 2020): English and Spanish o Housing Element online survey (July 2020 - December 2020): English and Spanish Second Phase of Outreach:

The City explored different strategies to develop more housing to meet state housing requirements and to meet its goals for maintaining community identity. Public feedback in the second phase of outreach was utilized to determine the locations and densities of new housing options. • Direct mailers, electronic e-mail blasts, and electronic flyers in English and Spanish Resolution No. 2023-31
Exhibit "B"
10 of 291
287
Item18.
• October 7, 2020 virtual workshop (English and Spanish services) • Presentation Video posted online “Land Use Alternative Workshop” (English and Spanish recordings)
Housing Element Study Sessions
The City conducted two study sessions in March 2021, one before the Planning Commission (March 23) and one before the City Council (March 24) to review the Draft Housing Element.

Consideration of Community Feedback
The joint planning process for the EVSP Specific Plan and Housin g Element included the outreach and participation of community members, business stakeholders and interest groups. Overarching comments received from the two rounds of community involvement for the EVSP included:
• Providing affordable to moderate income housing
• Promoting walkability through mixed-use buildings and complete streets concepts • Enhancing streetscapes and building frontages through design and amenities • Creating more public open space for the residents and visitors • Providin g affordable housing with appropriate design standards • Including parks and urban canopy as these are important concepts for an urban setting • Mindfully establishing parking standards to accommodate future and current needs • Allowing for community services and other existing uses while facilitating new opportunities Using community input gathered in the first phase of outreach, three Land Use Alternatives were developed for the City and community to assess and select a Preferred Land Use Alternative. The Preferred Land Use Alternative acts as a base in which the East Valley Specific Plan establishes the land uses, circulation network, design guidelines, and design standards. During the outreach activities, the community was informed that a significant portion of the City’ RHNA would be accommodated in this new growth area. Input gathered through this second outreach effort was folded into the Preferred Land Use Alternative, which is presented in the EVSP.

More generally related to housing across the entire City, the Housing Survey asked residents to rank housing challenges and needs across different categories. Overall , respondents ranked items as follows:
• Greatest housing challenges: housing costs, fair housing services, and neighborhood physical conditions
• Groups with greatest need: young adults, large households, persons formerly experiencing homelessness
• Greatest housing stock need: ADUs, housing for persons experiencing homelessness, housing for persons with disabilities
• Most important housing programs/activities : affordable housing, homelessness, first-time homebuyers.

The City also received oral and written public comments during the Planning Commission meetings on the draft Housing Element. Comments focused on implementing an inclusionary ordinance, minimum density requirements, value recapture requiring affordable housing, and hom eownership opportunities for lower income households.

Resolution No. 2023-31
Exhibit "B"
11 of 291
288
Item18.

To address concerns related to fair housing, Escondido has included Program 3.4. Escondido will continue the enforcement of the Fair Housing Action Plan and continue to contract with the Legal Aid Society of San Diego to provide fair housing services. Program 3.2, Focus on Neighborhoods, utilizes proactive code enforcement, housing rehabilitation, and capital improvement to improve physical conditions of Escondido neighborhoods.

As part of the Housing and Community Investment Study (HCIS), the City conducted a housing sector feasibility study to evaluate housing construction viability under different affordability scenarios. The Sector Feasibility Study explores all the direct and indirect costs associated with new construction to better understand market conditions and patterns of housing and community development policy, including the benefit/impact of potential inclusionary housing programs. The results of the 2021 study showed that even a 10% inclusionary requirement makes housing construction infeasible at higher residential densities. That is, an inclusionary requirement has been determined, by substantial evidence, to be a potential constraint to new home construction at the default densities deem ed appropriate to accommodate housing for lower income households (30 units per acre). It is important to note that most of the sites suitable for near term development in the City are at densities that are at or exceed 30 units per acre. Development expected under the existing regulations and partnerships, or even through the programmed implementation of the 2021-2029 Housing Element, would help the City determine if more affordable housing can be achieved through various zoning incentives or subsidies – or identify such opportunities, and then seek their implementation. However, in response to public comment surrounding inclusionary housing requirements, the City has included Program 2.9, Inclusionary Housing Assessment, to continue research and feasibility on a potential inclusionary housing mechanism for the City.

The East Valley Specific Plan (EVSP) requires minimum densities of 21 units/acre in the EV-U-5 zone and 30 units/acre in the EV-MU zone. The EVSP and Downtown Specific Plan also include a Density Transfer Program, allowing the City to transfer densities from vacant or underutilized sites to other properties in the Plan Area, enabling an increase in density beyond what is allowed under the current density (see Program 1.2). The transferred density will be held in a Density Credit Pool.

The City has included Program 2.2, First-Time Homebuyer Assistance, to assist lower income first- time homebuyers. The program utilizes HOME funds and aims to assist one household annually. The City will also actively pursue funding to expand this program. Program 2.4, Mobile Home Park Conversion, to assist applicants applying for funding from HCD to pursue mobile home park conversion to resident ownership.

Public Review of Draft Housing Element
The Draft Housing Element has been available for public review on City website since March 19. 2021. The City received public comment letters on the draft housing element and overall process, prior to the City Council initial adoption of the document on August 11, 2021. City staff reviewed received comment letters, including those submitted from the San Diego Housing Federation, Escondido Community Housing Coalition, Sierra Club North County Group, and Erik Felix and Laura Harper, as well as from HCD. After the August 2021 City C ouncil adoption, City staff met with each group listed to discuss how their comments may be integrated into the revised housing element document. Meetings with each group occurred between January and February of 2022. On April 15, 2022, the City posted the revised adopted Housing Element for a 30 -day review period, prior to resubmittal to HCD. City staff presented the draft changes in a public meeting on May 10, 2022 to the City’s Planning Commission and general public.

Resolution No. 2023-31
Exhibit "B"
12 of 291
289
Item18.

The City will continue to provide updated versions of the Draft Housing Element for public review.

Data Sources and Methodology
In preparing the Housing Element, various sources of information are consulted. The 2000 and 2010 Census provides the basis for population and household characteristics. Unfortunately, the 2020 Census data is not scheduled to be released in time for the preparation of this Housing Element. As of the writing of this Housing Element (February 2021), no 2020 Census data has been released.

Therefore, several sources are used to provide reliable updates to the 2010 Census, including the following:
• 2014-2018 American Community Survey by the Census Bureau • Population and demographic data updated by the State Department of Finance • Housing market information, such as home sales and rents, from Corelogic and Zillow, among other sources
• Lending patterns from the Home Mortgage Disclosure Act (HMDA) database • Labor statistics from California Employment Development Department General Plan Consistency
According to State planning law, the Housing Element must be consistent with the other General Plan elements. Certain goals and policies of each element may also address issues that are primary subjects of other elements. This integration of issues throughout the General Plan creates a strong basis for the implementation of plans and programs and achievement of community goals. The Housing Element is most closely tied to the Land Use Element as residential development capacities established in the Land Use Element are incorporated into the Housing Element.

The Escondido General Plan includes the following elements:
• Land Use and Community Form
• Mobility and Infrastructure
• Housing
• Community Health and Services
• Community Protection
• Resource Conservation
• Growth Management
• Economic Prosperity
This Housing Element is consistent with the policies and proposals set forth by the updated General Plan, but also incorporates new development opportunities offered by the East Valley Specific Plan.

The Safety Element was also updated concurrent with the Housing Element update.

When an element in the General Plan is amended in the future, the Housing Element will be reviewed and modified if necessary to ensure continued consistency among the various elements. The City will ensure that updates to these Elements achieve internal consistency with the Housing Element.

Resolution No. 2023-31
Exhibit "B"
13 of 291
290
Item18.

2. Housing Needs Assessment
The City strives to achieve a balanced housing stock that meets the varied needs of all income segments of the community. To understand the City’s housing needs, the nature of the existing housing stock and the housing market are comprehensively evaluated. This section of the Housing Element discusses the major components of housing needs in Escondido, including population, household, econ omic, and housing stock characteristics. Each of these components is presented in a regional context, and, where relevant, in the context of other nearby communities. This assessment serves as the basis for identifying the appropriate goals, policies, and programs for the City to implement during the 2021-2029 Housing Element cycle.

Population Characteristics
Understanding the characteristics of a population is vital in the process of planning for the future needs of a community. Population characteristics affect the type and amount of housing need in a community.

Issues such as population growth, race/ethnicity, age, and employment trends are factors that combine to influence the type of housing needed and the ability to afford housing. The following section describes and analyzes the various population characteristics and trends that affect housing need.

Population Growth
According to the California Department of Finance population estimates, the City population in 2020 was 153,008, increasing from 133,559 in 2000 and 143,911 in 2010. Between 2010 and 2020, the City population increased by approximately 10,000 people, representing an increase of approximately six percent (Table 1). During the same period, San Diego County population increased by eight percent. The City population as a proportion of the County population has remained the same over the past 30 years (4.6%).

Table 1: Population Growth (2000-2020)
2000 2010 2020 2000-2010 2010-2020
Escondido 133,559 143,911 153,008 7.8% 6.3%
San Diego Region 2,813,833 3,095,313 3,343,355 10.0% 8.0% Escondido as a % of the County 4.7% 4.6% 4.6% -2.0% -1.6% Sources: Bureau of the Census, 2000, and 2010; California Department of Finance, 2020.

Resolution No. 2023-31
Exhibit "B"
14 of 291
291
Item18.

Age Characteristics
A community’s current and future housing needs are determined in part by the age characteristics of residents. Typically, each age group has distinct lifestyles, family types and sizes, ability to earn incomes, and therefore, housing preferences. As people move through each stage of life, housing needs and preferences change. Traditional assumptions are that the young adult population (20 to 34 years old) tends to favor apartments, low to moderate cost townhomes/condominiums, and smaller single-family units.

The adult population (35 to 64 years old) represents the major market for moderate to relatively high cost condominiums and single-family homes. The senior population (65 years and older) tends to generate demand for low to moderate cost apartments and condominiums, group quarters, and mobile homes. In order to create a balanced community, it is important to provide housing options that suit the needs of various age groups.

In 2010, 31% of residents in the City were under the age of 20 years, 23% were young adults between 20 and 34 years, 36% were mature adults between 35 and 64 years, and 10% were elderly persons over 65 years of age (Table 2). According to the 2014-2018 ACS, the age distribution of Escondido residents was as follows: 28% of residents in the City were under the age of 20 years, 25% were between 20 and 34 years, 36% were between 35 and 64 years, and 11.6% were over 65 years of age. Overall, the City’s population is aging, with the median age increasing from 32.5 to 33.8 between the 2010 Census and the 2014-2018 ACS. Figure 1 shows that the proportion of population for all age categories under 55 has decreased between 2010 and 2018 (except for 25 to 34 years old) while population over 55 at all age categories has increased (except 75+ years old).

Resolution No. 2023-31
Exhibit "B"
15 of 291
292
Item18.

Table 2: Age Distribution (2010-2018)
Age 2010 2018
Total % of Total Total % of Total
Under 5 years 11,638 8.1% 11,164 7.4%
5-9 years 10,795 7.5% 9,976 6.6%
10-14 years 10,686 7.4% 9,858 6.5%
15-19 years 10,976 7.6% 10,735 7.1%
20-24 years 11,138 7.7% 11,554 7.6%
25-29 years 11,436 7.9% 14,280 9.4%
30-34 years 10,167 7.1% 11,383 7.5%
35-39 years 9,759 6.8% 9,589 6.3%
40-44 years 9,681 6.7% 9,246 6.1%
45-49 years 9,617 6.7% 9,490 6.3%
50-54 years 9,190 6.4% 9,418 6.2%
55-59 years 7,725 5.4% 8,937 5.9%
60-64 years 6,019 4.2% 7,853 5.2%
65-69 years 4,237 2.9% 5,619 3.7%
70-74 years 3,162 2.2% 4,125 2.7%
75+ years 7,685 5.3% 7,888 5.2%
Total 143,911 100.0% 151,115 100.0%
Median Age 32.5 33.8
Source: Bureau of the Census, 2010 Census; American Community Survey, 2014-2018.

Figure 1: Age Composition (2018)

Resolution No. 2023-31
Exhibit "B"
16 of 291
293
Item18.

Race/Ethnicity
Race/ethnicity of the population is important to an analysis of housing needs and conditions for several reasons. The cultural influences of races are often reflective of preferences for housing type, location of housing, associated services, and household composition. For example, the concept of “extended family” can have implications on the definitions of overcrowding and housing conditions.

The racial and ethnic composition of a community’s population should also be more carefull y examined at the neighborhood level. In general, Hispanic and Asian households exhibit a greater propensity than White households for living in extended families. However, with the rising housing crisis in California, and the recent economic challenges presented by COVID-19, extended family members sharing housing arrangements or adult children moving back with parents have become a trend in many California communities.

Escondido, like many communities throughout California, has experienced gradual changes in the racial and ethnic composition of its population. According to the 2010 Census, White residents (40%) no longer comprised the largest racial/ethnic group in the community. T he proportion of White residents continued to decrease, comprising only 36% of the population by 2018. Meanwhile, the City’s Hispanic residents now make up over half (52%) of the City’s population, which is a two percent increase since 2010 (Table 3).

Table 3: Race and Hispanic Origin (2018)
Race and Ethnicity Number Percent
Non-Hispanic Races
White 53,623 35.5%
Black or African American 3,302 2.2%
American Indian 553 0.4%
Asian 10,032 6.6%
Native Hawaiian and Other Pacific Islander 380 0.3%
Some other race 299 0.2%
Two or more races 4,545 3.0%
Hispanic 78,381 51.9%
Total 151,115 100.0%
Source: American Community Survey, 2014-2018.

Economic Characteristics
Employment has an important impact on housing needs. Incomes associated with different jobs and the number of workers in a household determines the type and size of housing a househol d can afford. In some cases, the types of jobs themselves can affect housing needs and demand (such as in communities with military installations, college campuses, and large amounts of seasonal agriculture). Employment growth typically leads to strong housing demand, while the reverse is true when employment contracts. In addition, the relationship between the location of housing and the location of employment has an impact upon transportation systems. Escondido is north of the major employment centers in San Diego County and, to a lesser extent, east of other areas in northern San Diego County.

Resolution No. 2023-31
Exhibit "B"
17 of 291
294
Item18.

Employment
The San Diego region currently has a smaller share of its employment in manufacturing than California and the nation. The decline in the proportion of jobs in manufacturing has been progressing for more than half a century nationwide. During the 1990s and continuing after 2000, the region’s economy continued to diversify away from manufacturing and defense-related industries.

Manufacturing’s share of total non-farm employment fell from 12.8% in 1990 to 10.3% in 2000 and

9.2% during 2014-2018, following a similar trend for the state and the nation. Conversely, s ervice occupations now comprise about 19.5% of the employment according to the 2014-2018 ACS.

The earnings gap between low - and high-paying jobs has also widened because of unbalanced job growth and the region’s capacity for low -paying jobs has increased through public and private investments in low value-added industries, such as tourism, entertainment, and retail trade, without compensating investments for high value-added industries. However, as digital technology continues to improve, fostering online shopping and streaming of entertainment, entertainment and retail jobs may be in jeopardy and are certainly most impacted by the Coronavirus pandemic.

As of September 2020, unemployment rate in Escondido was reported by the State Employment Development Department at 8.5%, below the regional average of 9.0% and the statewide average of

11.0%. The current COVID-19 crisis is expected to have long-lasting impacts on the economy. The “pre- COVID” unemployment rate in Escondido was reported at 4.0% as of March 2020. The impacts of COVID- 19 on housing affordability and housing problems (such as cost burden) are expected to worsen, although no data is available yet to substantiate the projections.

Table 4 highlights the difference in employment composition in Escondido versus the region. The table shows that employment in the agriculture and mining, construction, manufacturing, transportation, communication and utilities, wholesale trade, and public administration sectors are higher in Escondido.

Compared to the region, Escondido has a lower proportion of higher paying jobs in the finance/real estate insurance, retail trade, and professional services sectors. Of course, it is important to note that this data set largely ignores the growing number of Escondido residents that have a single part-time job, multiple part-time jobs, or have other sources of income such as that from the gig economy, rather than traditional full-time employment.

Resolution No. 2023-31
Exhibit "B"
18 of 291
295
Item18.

Table 4: Employment Characteristics - (2010-2018)

Industry Sector
2006-2010 ACS 2014-2018 ACS Median
Earnings
(Escondido
2018)
% of Escondido
Employment
% of Region
Employment
% of Escondido
Employment
% of Region
Employment
Agriculture, Mining 2.0% 0.7% 2.3% 0.9% $ 23,727
Construction 11.1% 7.2% 9.3% 5.9% $33,206
Manufacturing 11.5% 9.2% 9.6% 9.2% $ 41,896
Transportation,
Communication,
Utilities

2.7% 2.9% 3.3% 2.4% $ 36,638
Wholesale Trade 12.7% 10.8% 12.5% 10.5% $24,421
Retail Trade 2.6% 3.8% 3.9% 4.1% $47,267
Finance 1.9% 2.5% 1.6% 2.2% $50,231
Real Estate,
Insurance 5.4% 7.4% 4.8% 6.2% $39,682
Professional Services 12.1% 14.2% 14.2% 15.1% $32,035
Education, Health, and
Social Services 16.9% 19.9% 17.3% 21.3% $32,783
Arts, Recreation,
Entertainment 11.4% 10.6% 11.6% 11.9% $20,236
Other Services 6.5% 5.2% 7.0% 5.4% $20,310
Public Administration 3.3% 5.4% 2.4% 5.0% $59,136
Total 100.0% 100.0% 100.0% 100.0% $30,993
Sources: Bureau of the Census, 2006-2010; American Community Survey, 2014-2018. 2018 Census San Diego County Median Household Income = $81,500
Resolution No. 2023-31
Exhibit "B"
19 of 291
296
Item18.

Salary/Income
Table 5 displays mean annual wage data for occupations compiled by the California Employment Development Department (EDD) for the San Diego Metropolitan Statistical Area. Table 5 shows that the food preparation and serving, farming, fishing and forestry, personal care, and healthcare support occupations offer the lowest wages.

According to the ACS, approximately 14% of Escondido residents work at educational, health and social services occupations. Education and social services usually generate employment at the moderate income levels. Other major employment sectors for Escondido include arts, recreation and entertainment (17.3%) and wholesale trade (12.5%); both provide generally jobs at lower to moderate scales. Also refer to the next section regarding Escondido household incomes.

Table 5: Mean Salary by Occupation - San Diego Region (2020) Occupations Average Salary
Management $136,531
Legal $120,265
Computer and Mathematical $104,627
Healthcare Practitioners and Technical $102,053
Architecture and Engineering $99,949
Life, Physical and Social Science $87,579
Business and Financial Operations $80,850
Education, Training and Library $66,690
Arts, Design, Entertainment, Sports and Media $61,614
Construction and Extraction $60,047
Protective Service $58,837
Community and Social Service $56,793
Installation, Maintenance and Repair $54,945
Sales $45,974
Office and Administrative Support $45,385
Production $43,823
Transportation and Material Moving $39,362
Building, Grounds Cleaning, and Maintenance $36,248
Healthcare Support $35,609
Personal Care and Service $34,806
Farming, Fishing and Forestry $33,243
Food Preparation and Serving Related $31,942
All Occupations $61,770
Source: California Employment Development Division, Occupational Employment Statistics (OES), Q1, 2020.

Resolution No. 2023-31
Exhibit "B"
20 of 291
297
Item18.

Household Characteristics
The Census defines a "household" as all persons who occupy a housing unit, which may include single persons living alone, families related through marriage or blood, or unrelated persons sharing living quarters. Persons living in retirement or convalescent homes, dormitories, or other group living situations are not considered households. Furthermore, the Census classifies households by type according to the gender of the householder and the presence of relatives. Household characteristics such as size, type, income and tenure reveal important information about the housing needs of a community. Different household sizes, types and income levels often prefer different housing options.

According to the 2020 California Department of Finance housing estimates, there were 1,226,879 households (also known as occupied housing units) in San Diego County. Of these, 49,211 households, or approximately four percent, were located in Escondido.

Household Type and Size
Different household types generally have different housing needs. Seniors or young adults usually comprise the majority of the single-person households and tend to reside in apartments, condominiums or smaller single-family homes. Families with children often prefer single-family homes.

Escondido had 43,817 households in 2000. By 2010, this number grew marginally to 44,574, an increase of two percent. The number of households in Escondido increased an additional four percent to 46,338 households by 2018. Table 6 shows that, increasingly, Escondido households are comprised primarily of families. However, the greatest change between 2010 and 2018 was the increase in other ‘non-traditional’ families, including single parents. Married couples with children and single households living alone experienced numerical and proportional decreases.

According to the 2014-2018 ACS, 72% of the Escondido households were family-households. Of the City’s family households, 36% were married couples with children under the age of 18 and 34% were married couples without children. The proportion of other families continued to grow, representing 31% of all family-households.

Approximately 28% of Escondido households were non-family households with the majority of them (72%) being residents living alone. By 2018, the average household size in the City increased to 3.21 and the average family size increased to 3.69.

Resolution No. 2023-31
Exhibit "B"
21 of 291
298
Item18.

Table 6: Changes in Household Types (2010 – 2020)
Household Types 2010 2020 Change
2010-2020
# % # % # %
Families 31,816 71.4% 33,324 71.9% 1,508 4.7%
Married with Children 12,419 39.0% 11,819 35.5% -600 -4.8% Married, no Children 10,587 33.3% 11,227 33.7% 640 6.0% Other Families 8,810 27.7% 10,278 30.8% 1,468 16.7%
Non-Families 12,758 28.6% 13,014 28.1% 256 2.0%
Single- Living Alone 9,940 77.9% 9,324 71.6% -616 -6.2% Other Non-Families 2,853 22.4% 3,690 28.4% 837 29.3%
Total Households 44,574 100.0% 46,338 100.0% 1,764 4.0% Average Household Size 3.06 persons 3.21 persons 4.9%
Average Family Size 3.58 persons 3.69 persons 3.1%
Sources: Bureau of the Census, 2006-2010; American Community Survey, 2014-2018.

Household size is an important market characteristic. Housing demand is shaped by the composition of its household sizes. The small household (one to two persons per household) traditionally prefers units with zero to two bedrooms, while the large household (five or more persons per household) prefers units with at least three bedrooms. Information on Table 7 shows that a pproximately 18% of Escondido households included five or more persons.

Table 7: Household Size (2018)
Persons Owner HHs Percent Renter-
HHs Percent Total
HHs Percent
One 3,963 16.9% 5,361 23.4% 9,324 20.1%
Two 8,210 35.0% 5,375 23.5% 13,585 29.3%
Three 4,070 17.4% 3,736 16.3% 7,806 16.8%
Four 3,684 15.7% 3,507 15.3% 7,191 15.5%
Five 1,955 8.3% 3,014 13.2% 4,969 10.7%
Six 850 3.6% 1,125 4.9% 1,975 4.3%
Seven or more 694 3.0% 794 3.5% 1,488 3.2%
Total 23,426 100.0% 22,912 100.0% 46,338 100.0%
HHs = Households
Source: Bureau of the Census, American Community Survey 2014-2018.

Resolution No. 2023-31
Exhibit "B"
22 of 291
299
Item18.

Household Income
Household income is directly connected by the ability to afford housing. Income levels influence the range of housing prices within a region and the ability of the population to afford housing. Home ownership rates rise as household income increases. As household income decreases, households tend to pay a disproportionate amount of their income for housing and the number of persons occupying unsound and overcrowded housing increases.

For planning and funding purposes, the California State Department of Housing and Community Development (HCD) has developed the following income categories based on the Area Median Income (AMI) of a metropolitan area (such as San Diego County):
• Extremely Low: Households earning up to 30% of the AMI • Very Low: Households earning between 31 – 50% of the AMI • Low: Households earning between 51 – 80% of the AMI
• Moderate: Households earning between 81 - 120% of the AMI • Above Moderate: Households earning over 120% of the AMI Combined, the extremely low, very low, and low income groups are referred to as lower income. Federal programs provide assistance primarily to households in the lower Income category (up to 80% AMI). In 2017, approximately 47% of Escondido households earned moderate or above moderate incomes (Figure 2), while 53% of households had incomes in the lower income levels. 1 Figure 2: Households by Income Categories (2013 -2017)

1 Data was obtained from the Comprehensive Housing Affordability Strategy (CHAS) prepared for HUD by the Census Bureau using 2013-2017 Census data. CHAS data does not provide a breakdown of household income for those with more than 80% AMI as those households are not qualified for federal housing programs.

Extremely
Low
16%
Very Low
18%
Low
19%
Moderate or
Above
47%
Resolution No. 2023-31
Exhibit "B"
23 of 291
300
Item18.

Household incomes in Escondido tend to be lower than those in the region as a whole. Median household income in the City was $54,457 in 2009, compared to the San Diego County median household income of $62,901. The ACS estimates the median household income in Escondido between 2014 and 2018 was $62,319, compared to $74,855 in the County. Figure 3 compares household income in Escondido and in the San Diego region between 2014 and 2018. Approximately 60% of Escondido households had incomes over $49,999, seven percentage points lower than regionwide. Approximately 29% of Escondido households earned $100,000 or more, compared to 37% in all of San Diego County. Approximately 27% of Escondido residents earned less than $35,000 annually, compared to 23% region wide.

Figure 3: Household Income Distribution (2014- 2018)

Median household income compared to neighboring communities provides a way to measure income in Escondido against other cities. Table 8 compares median income in Escondido to other North County cities and the reg ion. Median household income in the City was one of the lowest in the region, comparable to the City of Vista.

Table 8: Median Household Income (2014-2018)
Jurisdiction Median HH Income* Percent Above/Below
Regional Median
Carlsbad $107,172 43.2%
Encinitas $113,175 51.2%
Escondido $62,319 -16.7%
Oceanside $68,652 -8.3%
Poway $105,732 41.2%
San Marcos $76,619 2.4%
Vista $65,696 -12.2%
San Diego Region $74,855 ----
Source: Bureau of the Census, American Community Survey, 2014-2018.

Median household income provides only partial insight into a community’s income profile. A more detailed breakdown of households by income category can provide more information about the proportion of households in Escondido whose limited incomes may lead them to have a higher incidence of housing

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%
Less than
$14,999
$15,000-
$24,999
$25,000-
$34,999
$35,000-
$49,000
$50,000-
$99,000
$100,000
or more
Escondido 8.0% 9.1% 9.6% 13.8% 31.0% 28.5%
San Diego County 8.1% 7.0% 7.5% 11.0% 29.5% 37.0%
Resolution No. 2023-31
Exhibit "B"
24 of 291
301
Item18.
problems such as overpayment (paying more than 30% of income on housing) or overcrowding (having more than one person per room).

Household incomes improved from 2000 to 2010 ( Table 9). The percentage of wage earners with annual incomes over $50,000 increased, while the percentage of those earning less than $50,000 decreased, through the majority of this increase was due to a 7.2% increase in residents earning $100,000 or more. Since 2010, while the proportion of households earning over $100,000 continued to increase, the proportions of households earning below $15,000 decreased from 10% to eight percent, indicating a decrease in the number of households earning extremely low incomes.

Table 9: Income Distribution (2000-2018)
Household Income Income Distribution Percentage Change
2000 2010 2018 2000-2010 2010-2018
< $10,000 3.8% 5.5% 4.9% 1.7% -0.6%
$10,000 - $14,999 5.0% 5.0% 3.1% 0.0% -1.9%
$15,000 - $24,999 11.8% 10.5% 9.1% -1.3% -1.4%
$25,000 - $34,999 14.3% 11.4% 9.6% -2.9% -1.8%
$35,000 - $49,999 16.5% 15.8% 13.8% -0.7% -2.0%
$50,000 - $74,999 22.2% 19.1% 18.1% -3.1% -1.0%
$75,000 - $99,999 12.3% 11.4% 12.9% -0.9% 1.5%
$100,000 or more 14.1% 21.3% 28.5% 7.2% 7.2%
Total 100.0% 100.0% 100.0% -- --
Source: Bureau of the Census, 2000 Census; 2005-2009 American Community Survey 2005-2009; American Community Survey 2014-2018.

Housing Problems
The Comprehensive Housing Affordability Strategy (CHAS) developed by the Census for HUD provides detailed information on housing needs by income level for different types of households in Escondido.

Detailed CHAS data based on the 2013-2017 American Community Survey is displayed in Table 10.

Housing problems considered by CHAS include:
• Units with physical defects (lacking complete kitchen or bathroom); • Overcrowded conditions (housing units with more than one person per room); • Housing cost burden, including utilities, exceeding 30% of gross income; or • Severe housing cost burden, including utilities, exceeding 50% of gross income.

The types of problems vary according to household income, type, and tenure. Some highlights include:
• In general, renter -households had a higher level of housing problems (66% ) compared to owner-households (36%).
• Large renter-families had the highest level of housing problems regardless of income level (84%).
• Extremely low income (78% ) and very low income households (85 %) had the highest incidence of housing problems.

Resolution No. 2023-31
Exhibit "B"
25 of 291
302
Item18.

Table 10: Housing Assistance Needs of Lower Income Households (2017) Household by Type, Income,
and Housing Problem
Renters Owners Total
Households Elderly Small
Families
Large
Families
Total
Renters Elderly Large
Families
Total
Owners
Extremely Low Income (0-30% AMI) 1,085 2,335 720 5,465 910 55 1,835 7,300 % with any housing problem 75.1% 87.4% 97.9% 84.1% 65.9% 100.0% 60.5% 78.2% % with cost burden >30% 74.2% 86.5% 96.5% 82.8% 66.5% 100.0% 60.8% 77.3% % with cost burden > 50% 65.0% 72.6% 83.3% 71.0% 48.4% 100.0% 48.2% 65.3% Very Low Income (31-50% AMI) 865 2,645 1,180 5,600 1,115 420 2,250 7,850 % with any housing problem 86.1% 95.7% 95.3% 93.4% 52.0% 88.1% 64.9% 85.2% % with cost burden >30% 85.0% 90.2% 85.6% 88.5% 51.6% 59.5% 59.1% 80.1% % with cost burden >50% 42.2% 39.5% 33.1% 40.0% 30.0% 21.4% 37.8% 39.4% Low Income (51-80% AMI) 685 2,220 1,195 5,170 1,420 635 3,495 8,665 % with any housing problem 78.1% 68.5% 87.0% 72.8% 39.8% 70.1% 54.6% 65.5% % with cost burden >30% 75.2% 53.8% 41.8% 55.3% 39.1% 55.9% 51.9% 54.0% % with cost burden > 50% 24.1% 7.2% 7.9% 9.5% 16.2% 13.4% 19.9% 13.7% Total Households 3,495 10,285 3,865 22,695 6,960 2,865 22,485 45,180 % with any housing problem 65.5% 65.5% 83.8% 66.0% 34.9% 59.3% 35.7% 50.9% Note: Data presented in this table are based on special tabulations from sample Census data. The number of households in each category usually deviates slightly from the 100% total due to the need to extrapolate sample data out to total households.

Interpretations
of these data should focus on the proportion of households in need of assistance rather than on precise numbers.

Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2013-2017.

Overcrowding
Overcrowding is typically defined as a housing unit occupied by more than one person per room. A severely overcrowded household is defined as one with more than 1.5 persons per room. Under State law a housing unit is considered overcrowded if there is less than 120 square feet of livable space (all space except the bath, kitchen and hallways) for the first two people and less than an additional 50 square feet for each additional person. Overcrowding can indicate that a community does not have an adequate supply of affordable housing, especially for large families.

Overcrowding typically occurs when there are not enough adequately sized units within a community, when high housing costs relative to income force too many individuals to share a housing unit than it can adequately accommodate, or when families reside in smaller units than they need to devote income to other necessities, such as food and health care. Overcrowding tends to accelerate the deterioration of housing. Therefore, maintaining a reasonable level of occupancy and alleviating overcrowding are critical to enhancing quality of life.

Table 11 shows that nearly 10% of the households in Escondido were overcrowded in 2010, inclusive of the 12% that were severely overcrowded. Overcrowding was more prevalent among renter-households than owner-households, as rental units are typically smaller in size and renter-households typically have lower incomes. The situation with overcrowding worsened significantly between 2010 and 2018, with over 12% of the City’s households being overcrowded. Specifically, over 4% of the households were severely overcrowded. The prevalence of overcrowding among owner-households did not change significantly between 2010 and 2018. However, the prevalence of renter-households increased from 16% to 20% and Resolution No. 2023-31
Exhibit "B"
26 of 291
303
Item18.
severely overcrowded renter-households increased nearly three percent to 7.5 % between 2014 and 2018.

Table 11: Overcrowded Housing Units (2010-2018)
Overcrowding
Owner-Households Renter-Households Total Households
Number % of
Owners Number % of
Renters Number % of Total
2010
Total Overcrowded
(More than 1.0 persons/room) 1,073 4.4% 3,236 15.9% 4,309 9.7% Severely Overcrowded
(More than 1.5 persons/room) 324 1.0% 841 4.1% 1,075 2.4% 2018
Total Overcrowded
(More than 1.0 persons/room) 1,263 5.4% 4,475 19.5% 5,738 12.4% Severely Overcrowded
(More than 1.5 persons/room) 285 1.2% 1,725 7.5% 2,010 4.3% Source: Bureau of the Census, 2006-2010; American Community Survey, 2014-2018.

Cost Burden
Measuring the portion of a household’s gross income that is spent for housing is an indicator of the dynamics of demand and supply. This measurement is often expressed in terms of “ cost burden”-- households paying an excessive amount of their income for housing, therefore decreasing the amount of disposable income available for other needs. This indicator is an important measurement of local housing market conditions as it reflects the affordability of housing in the community. Federal and state agencies use cost burden indicators to determine the extent and level of funding and support that should be allocated to a community.

Table 12 shows that in 2017, 41% of households in the San Diego region were paying over 30% of their income towards housing costs. In Escondido, nearly 45% of all households were cost burdened. Renters were more likely to experience cost burden than owners; in Escondido 58 % of renters were cost burdened, compared to 32% of owners. Escondido had the highest level of cost burdened renters while Encinitas had the lowest level. For owner-households, Vista had the highest level of cost burden and Carlsbad had the lowest level.

Resolution No. 2023-31
Exhibit "B"
27 of 291
304
Item18.

Table 12: Household Cost Burden (2017)

All HH Renters Owners
Total % Paying
30%+ Total % Paying
30%+ Total % Paying
30%+
Carlsbad 43,280 34.6% 15,130 46.1% 28,150 28.4%
Encinitas 24,285 35.5% 8,790 45.6% 15,495 29.8%
Escondido 45,175 44.8% 22,685 57.5% 22,490 31.9%
Oceanside 61,980 42.2% 27,290 55.1% 34,685 32.0%
Poway 15,770 33.9% 4,035 48.3% 11,735 28.9%
San Marcos 29,175 40.9% 11,285 53.6% 17,885 32.8%
Vista 30,570 44.7% 15,530 55.5% 15,040 33.6%
San Diego Region 1,111,740 41.3% 522,595 52.0% 589,145 31.7% Note: Households do not equal total presented in other tables because housing costs were not computed for all households.

Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2013-2017.

Table 13 provides more details on cost burden by income group for Escondido. Approximately 70% of lower income households were cost burdened versus 17 % of moderate and above moderate households.

Table 13: Cost Burden by Tenure and Income Level (2017) Household Income Group Total Renters Total Owners Total Extremely Low (<=30% AMI) 3,552 1,184 4,736
Cost Burden >30% 3,012 919 3,931
% Cost Burden >30% 84.8% 77.6% 83.0%
Very Low (>30% to <=50% AMI) 4,298 1,705 6,003
Cost Burden >30% 3,451 1,023 4,478
% Cost Burden >30% 80.3% 60.0% 74.6%
Low (>50% to <=80% AMI) 5,077 3,782 8,859
Cost Burden >30% 2,193 1,728 3,925
% Cost Burden >30% 43.2% 45.7% 44.3%
Moderate & Above (>80% AMI) 7,479 16,670 24,149
Cost Burden >30% 524 3,134 3,671
% Cost Burden >30% 7.0% 18.8% 15.2%
Total 20,406 23,341 43,747
Cost Burden >30% 9,183 6,816 15,968
% Cost Burden >30% 45.0% 29.2% 36.5%
Note: Totals may not be exact due to rounding; the Census Bureau uses a special rounding scheme for special tabulations such as these; totals may not match other census datasets Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2013-2017

Resolution No. 2023-31
Exhibit "B"
28 of 291
305
Item18.

Special Needs Groups
Certain segments of the population may have more difficulty in finding decent, affordable housing due to their special needs. Special circumstances may be related to one’s employment and income, family characteristics, disability and household characteristics, among other factors. Consequently, certain residents in Escondido may experience higher incidences of housing cost burden, overcrowding, or other housing problems.

The special needs groups analyzed include the elderly, people with disabilities (including persons with developmental disabilities), homeless people, single parents, large households, military personnel, farm workers, and students (Table 14). Many of these groups overlap, for example many farm workers may be homeless, and many elderly people have a disability of some type.

The majority of these special needs groups would be assisted by an increase in affordable housing, especially housing located near public transportation and services. Table 15 provides a list of services and facilities available to assist households/persons with special needs.

Table 14: Special Needs Groups
Special Needs Group # of People
or HHs
#
Owners
%
Owner
#
Renters
%
Renter
% of Total
HHs or
Population
Households with Seniors 11,169 -- -- -- -- 24.1%
Senior Headed Households 9,915 6,919 29.5% 2,996 13.1% 21.4% Seniors Living Alone 4,255 2,201 9.4% 2,054 9.0% 9.2%
Persons with Disabilities 15,626 -- -- -- -- 10.3%
Large Households 8,432 3,499 14.9% 4,933 21.5% 18.2%
Single-Parent Households 5,127 -- -- -- -- 11.1%
Female-Headed Households 6,806 2,457 10.5% 4,349 19.0% 14.7% Female-Headed Households with children 3,739 -- -- -- -- 7.3% People Living in Poverty 22,270 -- -- -- -- 14.7%
Farmworkers1 1,707 -- -- -- -- 1.1%
Homeless 429 -- -- -- -- 0.3%

1. ACS category includes “Agriculture, forestry, fishing and hunting, and mining.” Source: Bureau of the Census, American Community Survey, 2014-2018; Regional Housing Task Force on the Homeless 2020.

Resolution No. 2023-31
Exhibit "B"
29 of 291
306
Item18.

Table 15: Inventory of Services for Special Needs Populations Services Program Details
Emergency
Shelters,
Permanent, &
Transitional
Housing
Hidden Valley House
Provides temporary, emergency shelter for survivors of domestic violence and their children. Offers safety planning, crisis counseling, advocacy services and assistance with obtaining long- term safe housing.

Inland Service Center/
Interfaith Community
Services
Haven House Year-Round Shelter provides emergency housing for up to 49 homeless men and women each night.

Also offers temporary beds for veterans with or without a housing intervention already in place to assist in their transition from homelessness to permanent housing.

Interfaith offers a variety of permanent housing units and programs that provide safe and affordable housing for homeless community members.

Serenity Village Transitional Housing for women and women with children.

Tikkun House
Provides temporary emergency shelter for homeless mentally or emotionally disturbed women. Case planning, counseling, and advocacy are offered.

Interfaith Community
Services
Resources to find affordable housing, transition housing, emergency shelter
Las Casitas Community
Housing
Housing education and workshops, low -income housing lists, homebuyer loans and foreclosure prevention.

Veterans
Aster 10 beds (short-term recuperative)
Aster Apartments 28 beds
Fairweather Lodge 6 mentally ill veterans (permanent supportive housing) Merle’s Place 44 beds (dormitory)
New Resolve 44 beds (homeless, veterans)
Raymond’s Refuge I & II 6 beds each for homeless seniors/ disabled (permanent supportive housing)
Veterans Villas PSH & affordable units owned by VVSD on S Escondido Blvd. (total 54 units in development)
Senior/Disability
Services Joslyn Center Senior support
Source: City of Escondido

Resolution No. 2023-31
Exhibit "B"
30 of 291
307
Item18.

Seniors
Many senior-headed households have special needs due to their relatively low incomes, disabilities or limitations, and dependency needs. Specifically, people aged 65 years and older often have four main concerns:
• Housing: Many seniors live alone and may have difficulty maintaining their homes. • Income: People aged 65 and over are usually retired and living on a limited income. • Health care: Seniors are more likely to have high health care costs. • Transportation: Many of the elderly rely on public transportation; especially those with disabilities.

The limited income of many elderly persons often makes it difficult for them to find affordable housing. In the San Diego region, the elderly spend a higher percentage of their income for food, housing, medical care, and personal care than non-elderly families. Many elderly households need smaller “efficiency” units to make independent living possible and many single elderly persons need some form of housing assistance.

Table 16 shows that 17,632 persons were age 65 and older in Escondido in 2018. This accounted for about 12% of residents, comparable to the percentage found in the region as a whole. In comparison, most surrounding communities had higher proportions of seniors. Among the City’s senior population, 9,915 seniors were heads of households, representing about 21% of the City’s overall households (Table 14). Specifically, 4,255 senior-headed households were seniors living alone.

Table 16: Persons Age 65 and Older (2018)
Jurisdiction Total Age 65+ Percent Age 65+
Carlsbad 113,670 19,151 16.8%
Encinitas 62,713 11,124 17.7%
Escondido 151,115 17,632 11.6%
Oceanside 175,389 27,214 15.5%
Poway 49,842 8,123 16.3%
San Marcos 94,709 11,057 11.7%
Vista 100,108 9,676 9.7%
San Diego Region 3,302,833 439,595 13.3%
Source: American Community Survey, 2014-2018.

Table 17 shows elderly households by tenure and income level in 2017. About the same proportion of elderly renter-occupied households and renter-occupied households (65.5% and 66%, respectively) experience a housing problem. Housing problems are defined as cost burden greater than 30% of income, and/or overcrowding, and/or without complete kitchen or plumbing facilities. Additionally, 64% of elderly renter-occupied households were paying more than 30% of their income for housing compared with 58% of all renter-households. Elderly owner-occupied households, on the other hand, tend to be better off than all households as a group (51%) but only marginally better than all owner-occupied households. About 35% elderly owner-occupied households had any housing problem compared with 36% of all owner- occupied households. It appears that elderly owner-renter households are disproportionately affected by cost burden since about 36% are cost-burned compared to 31% of all owner-occupied households. Also, Resolution No. 2023-31
Exhibit "B"
31 of 291
308
Item18.
while most elderly owner-households no longer hold a mortgage, some elderly homeowners may not be able to afford the costs of maintenance and repairs.

Table 17: Elderly Households by Tenure and Income Level (2017) Household by Type, Income and Housing
Problem
Renters Owners Total
Households Elderly
Renters
Total
Renters
Elderly
Owners
Total
Owners
Household Income <=30% AMI 1,085 5,465 910 1,835 7,300
% with any housing problems 75.1% 84.1% 65.9% 60.5% 78.2% % Cost Burden >30% 74.2% 82.8% 66.5% 60.8% 77.3%
% Cost Burden >50% 65.0% 71.0% 48.4% 48.2% 65.3%
Household Income >30 to <=50% AMI 865 5,600 1,115 2,250 7,850 % with any housing problems 86.1% 93.4% 52.0% 64.9% 85.2% % Cost Burden >30% 85.0% 88.5% 51.6% 59.1% 80.1%
% Cost Burden >50% 42.2% 40.0% 30.0% 37.8% 39.4%
Household Income >50 to <=80% AMI 685 5,170 1,420 3,495 8,665 % with any housing problems 78.1% 72.8% 39.8% 54.6% 65.5% % Cost Burden >30% 75.2% 55.3% 39.1% 51.9% 54.0%
% Cost Burden >50% 24.1% 9.5% 16.2% 19.9% 13.7%
Household Income >80% AMI 860 6,460 3,515 14,905 21,365 % with any housing problems 22.7% 21.6% 19.5% 23.8% 23.1% % Cost Burden >30% 19.8% 11.1% 19.2% 19.6% 17.0%
% Cost Burden >50% 5.8% 1.0% 2.8% 1.8% 1.6%
Total Households 3,495 22,695 6,960 22,485 45,180
% with any housing problems 65.5% 66.0% 34.9% 35.7% 50.9% % Cost Burden >30 63.7% 57.5% 34.6% 31.9% 44.8%
% Cost Burden >50 36.8% 29.4% 15.9% 12.0% 20.7%
Notes:

Any housing problems: cost burden greater than 30% of income and/or overcrowding and/or without complete kitchen or plumbing facilities. Other housing problems: overcrowding (1.01 or more persons per room) and/or without complete kitchen or plumbing facilities.

Elderly households: 1 or 2 person household, either person 62 years old or older.

Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2013-2017.

Resolution No. 2023-31
Exhibit "B"
32 of 291
309
Item18.

Persons with Disabilities
In Escondido and elsewhere, persons with disabilities have a wide range of housing needs, which vary depending on the type and severity of the disability as well as personal preference and lifestyle. Physical, mental, and/or developmental disabilities may prevent a person from working, restrict one’s mobility, or make it difficult to care for oneself. “Barrier-free design” housing, accessibility modifications, proximity to services and transit, and group living opportunities represent some of the types of considerations and accommodations that are important in serving this group. Also, some residents suffer from disabilities that require living in a supportive or institutional setting.

According to 2014-2018 ACS data, approximately 10% of Escondido residents had a disability. The ACS also tallied the number of disabilities by type for residents with one or more disabilities. Among the disabilities tallied, cognitive, ambulatory, and independent living difficulties were almost equally prevalent (Table 18).

Table 18: Disabilities Tallied by Age and Type (2018)
Disability Type Under 18 Age 18 to 64 Age 65+ Total
With a hearing difficulty 8.8% 8.6% 17.0% 12.6%
With a vision difficulty 9.3% 8.5% 7.6% 8.2%
With a cognitive difficulty 54.9% 23.2% 13.1% 20.1%
With an ambulatory difficulty 8.8% 26.4% 28.7% 26.5%
With a self-care difficulty 18.2% 10.5% 11.1% 11.2%
With an independent living difficulty 0.0% 22.8% 22.4% 21.4% Total Disabled Persons 1,724 14,811 14,879 31,414
Note: A person can have multiple disabilities.

Source: American Community Survey, 2014-2018.

Four factors – affordability, design, location, and discrimination – significantly limit the supply of housing available to households of persons with disabilities. The most obvious housing need for persons with disabilities is housing that is adapted to their needs. Most single-family homes are inaccessible to people with mobility and sensory limitations. Housing may not be adaptable to widened doorways and hallways, access ramps, larger bathrooms, lowered countertops, and other features necessary for accessibility.

Location of housing is also an important factor for many persons with disabilities, as they often rely upon public transportation to travel to necessary services and shops. “Barrier free design” housing, accessibility modifications, proximity to services and transit, and group living opportunities are important in serving this group. Incorporating barrier-free design in all new multi-family housing is especially important to provide the widest range of choices for the disabled.

Housing advocacy groups report that people with disabilities are often the victims of discrimination in the home buying market. People with disabilities, whether they work or receive disability income are often perceived to be a greater financial risk than persons without disabilities with identical income amounts.

The 2014-2018 ACS reported that 19% of persons with disabilities in Escondido were living below the poverty level. It also estimated that 73% of people with disabilities between the ages of 16 and 64 years in the City were not in the labor force.

A change in State law requires that the Housing Element discuss the housing needs of persons with developmental disabilities. As defined by federal law, “developmental disability” means a severe, chronic disability of an individual that:

Resolution No. 2023-31
Exhibit "B"
33 of 291
310
Item18.
• Is attributable to a mental or physical impairment or combination of mental and physical impairments;
• Is manifested before the individual attains age 18;
• Is likely to continue indefinitely;
• Results in substantial functional limitations in three or more of the following areas of major life activity: self-care; receptive and expressive language; learning; mobility; self- direction; capacity for independent living; or economic self- sufficiency; • Reflects the individual’s need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated.

The Census does not record developmental disabilities. Acc ording to the U.S. Administration on Developmental Disabilities, an accepted estimate of the percentage of the population that can be defined as developmentally disabled is 1.5 %. This equates to 2,295 persons in the City of Escondido with developmental disabilities based on the 2020 California Department of Finance population estimates.

The San Diego Regional Center, which provides services for persons with developmental disabilities, publishes client statistics for its four area offices. The City of Escondido is served by the North County office in San Marcos. As of June 2019, 1,672 residents Escondido residents had received services from the Regional Center.

Many developmentally disabled persons can live and work independently within a conventional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person’s living situation as a child to an appropriate level of independence as an adult.

Large Households
Large households are defined as those consisting of five or more members. These households comprise a special need group because of the limited supply of adequately sized and affordable housing units in a community. To save for other basic necessities such as food, clothing and medical care, it is common for lower income large households to reside in smaller units, which frequently results in overcrowding and can accelerate the deterioration of housing.

The City had 8,111 large households in 2000, comprising about 19% of the City’s total households. The proportion increased to 21% by the following decade. The 2010 Census data indicated that there were 9,410 households with five or more members. By 2018, the number of large households decreased to 8,432, or 18 % of all households in the City. Table 19 compares the number of large households in Escondido to that in the region as a whole. In 2018, 18% of households in Escondido consisted of five or more persons, compared to 12% region wide. Renter-households represented the majority (59%) of all large households.

Resolution No. 2023-31
Exhibit "B"
34 of 291
311
Item18.

Table 19: Large Households (2018)
Jurisdiction Persons in Household Total
Households 5 6 7+
Escondido 4,969 1,975 1,488 8,432
Percent of Total 10.7% 4.3% 3.2% 18.2%
San Diego Region 78,930 32,607 21,051 132,588
Percent of Total 7.1% 2.9% 1.9% 11.8%
Source: Bureau of the Census, 2014-2018 American Community Survey.

As shown in Table 20, a greater percentage of larger households had housing problems than all households (51%) in 2017. Housing problems can be defined as cost burden greater than 30% of income, and/or overcrowding, and/or without complete kitchen or plumbing facilities. Renter -occupied large households (as a group) tend to have more housing problems than owner-occupied large households.

The majority of renter-occupied large households (84%) had one or more housing problems, while more than half of larger owner-occupied households (59%) had one or more housing problems.

Resolution No. 2023-31
Exhibit "B"
35 of 291
312
Item18.

Table 20: Large Households by Tenure and Income Level (2017) Household by Type, Income, & Housing
Problem
Renters Owners
Total
Households
Large
Related
(5 or more
members)
Total
Renters
Large
Related
(5 or more
members)
Total
Owners
Household Income <=30% AMI 720 5,465 55 1,835 7,300
% with any housing problems 97.9% 84.1% 100.0% 60.5% 78.2% % Cost Burden >30% 96.5% 82.8% 100.0% 60.8% 77.3%
% Cost Burden >50% 83.3% 71.0% 100.0% 48.2% 65.3%
Household Income >30 to <=50% AMI 1,180 5,600 420 2,250 7,850 % with any housing problems 95.3% 93.4% 88.1% 64.9% 85.2% % Cost Burden >30% 85.6% 88.5% 59.5% 59.1% 80.1%
% Cost Burden >50% 33.1% 40.0% 21.4% 37.8% 39.4%
Household Income >50 to <=80% AMI 1,195 5,170 635 3,495 8,665 % with any housing problems 87.0% 72.8% 70.1% 54.6% 65.5% % Cost Burden >30% 41.8% 55.3% 55.9% 51.9% 54.0%
% Cost Burden >50% 7.9% 9.5% 13.4% 19.9% 13.7%
Household Income >80% AMI 770 6,460 1,755 14,905 21,365 % with any housing problems 48.1% 21.6% 47.3% 23.8% 23.1% % Cost Burden >30% 6.5% 11.1% 18.2% 19.6% 17.0%
% Cost Burden >50% 0.0% 1.0% 2.6% 1.8% 1.6%
Total Households 3,865 22,695 2,865 22,485 45,180
% with any housing problems 83.8% 66.0% 59.3% 35.7% 50.9% % Cost Burden >30% 58.3% 57.5% 34.2% 31.9% 44.8%
% Cost Burden >50% 28.1% 29.4% 9.6% 12.0% 20.7%
Note: Totals may not match other 2014-2018 ACS products due to rounding.

Any housing problems: cost burden greater than 30% of income and/or overcrowding and/or without complete kitchen or plumbing facilities.

Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2013-2017.

Resolution No. 2023-31
Exhibit "B"
36 of 291
313
Item18.

Single Parent Households
Single-parent families, particularly female- headed families with children, often require special consideration and assistance because of their greater need for affordable housing and accessible day care, health care, and other supportive services. Female-headed families with children are considered a vulnerable group because they must balance the needs of their children with work responsibilities, often while earning limited incomes.

Table 21 shows that in 2018, Escondido had 5,127 single-parent households (11% of all households). Of these, the majority (66%) were female-headed households. In comparison, about eight percent of all County households were single-parent households, but 72% of these households were female-headed households.

Table 21: Single Parent Households (2018)

Total
HHs
Single
Parent
HHs
Percent
Total HHs
Female
Headed
HHs
Percent
Single
Parent
HHs
Below Poverty
Female Headed
HHs
Percent
Female
Headed HHs
Escondido 46,338 5,127 11.1% 3,379 65.9% 1,454 43.0%
San Diego Region 1,118,980 92,411 8.3% 66,423 71.9% 22,186 33.4% HHs = Households
Source: American Community Survey, 2014-2018.

Residents Living Below Poverty
Female-headed families are particularly affected by poverty disproportionately. In 2010, 21% of the City’s total residents (29,055 persons) were living in poverty. Approximately 34% of female-headed households with children, however, had incomes below the poverty level. In comparison, the 2014-2018 ACS reports that the percent of the City’s population living below the poverty level decreased to 15% while percent of female-headed families increased by nine percent to 43%.

Extremely Low-Income Households
Extremely low-income (ELI) is defined as households with income less than 30% of area median income. The area median income in the County is $92,700. For ELI households, this results in an income of $31,200 or less for a four-person household or $24,300 or less for a one-person household (See Table 34). ELI households have a variety of housing situations and needs. For example, most families and individuals receiving public assistance, such as social security insurance (SSI) or disability insurance are considered ELI households.

According to the most recent data from HUD, approximately 7,300 ELI households resided in the City, representing 16% of the total households. Most ( 78%) ELI households experience a high incidence of housing problems (defined as cost burden greater than 30% of income and/or overcrowding and/or without complete kitchen or plumbing facilities) . Most (75%) ELI households are also renters, and renter ELI households experience housing problems at higher rates than owner ELI households (84% versus 61%, respectively). Elderly households make up almost one third (1,995) of all ELI households. In addition, over 60% of ELI households have a member with a disability.

Resolution No. 2023-31
Exhibit "B"
37 of 291
314
Item18.

Table 22: Extremely-Low-Income Households by Tenure and Type Renters Owners All ELI
HH Elderly Small
Related
Large
Related
Total
Renters
Elderly Small
Related
Large
Related
Total
Owners
ELI Households 1,085 2,335 720 5,465 910 550 55 1,835 7,300 % with Any Housing
Problem 75.1% 87.4% 97.9% 84.1% 65.9% 39.1% 100.0% 60.5% 78.2% % with Cost Burden >30 74.2% 86.5% 96.5% 82.8% 66.5% 40.0% 100.0% 60.8% 77.3% % with Cost Burden >50 65.0% 72.6% 83.3% 71.0% 48.4% 33.6% 100.0% 48.2% 65.3% With Disability N/A N/A N/A 3,335 N/A N/A N/A 1,210 4,545 % with Disability N/A N/A N/A 61.0% N/A N/A N/A 65.9% 62.2% Total HH 3,495 10,285 3,865 22,695 6,960 10,535 2,865 22,485 45,180 % of HH ELI 31.0% 22.7% 18.6% 24.1% 13.1% 5.2% 1.9% 8.2% 16.2% Source: HUD CHAS 2013-2017 ACS Estimates
ELI households will likely seek rental housing and housing that is accessible to elderly residents and/or residents with disabilities. To address the range of needs, the City will promote a variety of housing types by locating ELI housing across the City (in the Downtown, East Valley, and South Centre planning areas), along with other transit-supportive uses and improvements. In addition, the City will facilitate and encourage low-income housing through the following Programs:
• ADUs: Explore tools and incentives to facilitate ADU construction, including on religious properties.
• Supportive Housing: Review and amend their Municipal Code to ensure supportive housing is allowed where residential uses are allowed.
• Affordable Housing Finance Programs: Support the construction, acquisition/rehabilitation, and preservation of affordable housing in the community, especially for ELI and special needs households.

In addition, the City has a variety of programs that support existing ELI households:
• Essential Middle Income Rental Housing Program: Acquisition and conversion of existing market-rate apartment communities to rent-restricted units for Low -Income, Median-Income, and Moderate-Income households earning no more than 120% of AMI. • Mobile Home Park Rent Review: Conduct hearings on rent increases. • Preservation of at-risk units.

Homeless
Throughout the San Diego region and country, homelessness has become an increasingly important issue. Factors contributing to the rise in homelessness include a lack of housing affordable to low and moderate income persons, increases in the number of persons whose incomes fall below the poverty level, reductions in public subsidies to the poor, and the de-institutionalization of the mentally ill.

State law (Government Code section 65583(7)) mandates that municipalities address the special needs of homeless persons within their jurisdictional boundaries. “Homelessness” as defined by the U.S.

Department of Housing and Urban Development (HUD), describes an individual (not imprisoned or otherwise detained) who:

Resolution No. 2023-31
Exhibit "B"
38 of 291
315
Item18.
• Lacks a fixed, regular, and adequate nighttime residence; and • Has a primary nighttime residence that is:
• A supervised publicly or privately operated shelter designed to provide temporary living accommodations (including welfare hotels, congregate shelters, and transitional housing for the mentally ill);
• An institution that provides a temporary residence for individuals intended to be institution- alized; or
• A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings.

This definition does not include per sons living in substandard housing, (unless it has been officially condemned); persons living in overcrowded housing (for example, doubled up with others), persons being discharged from mental health facilities (unless the person was homeless when entering and is considered to be homeless at discharge), or persons who may be at risk of homelessness (for example, living temporarily with family or friends.)
The Regional Task Force on Homelessness (“RTFH”) is San Diego County’s leading resource for information on issues of homelessness. Established in 1985, the Task Force promotes a regional approach as the best solution to ending homelessness in San Diego County. The Task Force is a public/private effort to build a base of understanding about the multiple causes and conditions of homelessness.

According to the Task Force, the San Diego region’s homeless population can be divided into two general groups: (1) urban homeless, and (2) rural homeless, including farm workers and day laborers who primarily occupy the hillsides, canyons and fields of the northern regions of the county. It is important to recognize that homeless individuals may fall into more than one category (for example, a homeless individual may be a veteran and a substance abuser), making it difficult to accurately quantify and categorize the homeless.

Since the homeless population is very difficult to quantify, Census information on homeless populations is often unreliable, due to the difficulty of efficiently counting a population without permanent residences.

The Task Force compiles data from a physical Point-In-Time (“PIT”) count of sheltered (emergency and transitional) and street homeless persons. The 2020 Count was conducted on January 22, 2020, and the results are shown in Table 23 Oceanside and Escondido had the largest homeless populations of the North County cities.

Resolution No. 2023-31
Exhibit "B"
39 of 291
316
Item18.

Table 23: Homelessness in North County Cities (2020)
Jurisdiction Sheltered Unsheltered Total
Carlsbad 53 94 147
Escondido 165 264 429
Encinitas 33 47 80
Oceanside 166 242 408
Poway 0 15 15
San Marcos 0 8 8
Vista 49 51 100
San Diego Region 3,648 3,971 7,619
Source: Regional Housing Task Force on the Homeless (2020).

Military Personnel
The military population’s influence on the demand for housing takes two forms: (a) the existing service households trying to find housing; and (b) the former (either retirement or non-retirement separations) service households trying to find housing. The San Diego region is home to a disproportionate share of the State's and the nation’s military personnel. According to the one-year 2018-2019 ACS, 54 % of California’s 150,746 uniformed military personnel were stationed in the San Diego region, and seven percent of the nation’s 1.2 million armed forces were located in the region.

The greatest concentration of military personnel to the overall labor force in the region is found in Coronado, home to Naval Air Station North Island. Almost one out of every two members of Coronado’s total labor force is in the military. Other areas with relatively high concentrations of military personnel are the City of National City and the unincorporated area. However, the City of San Diego has the largest number of people in the armed forces (32,617), accounting for about 40% of the region’s enlisted military personnel. The existing military family housing is scattered across the region, and some communities, such as Escondido, have substantial portions of their housing stock occupied by military families.

However, less than one percent of the region’s armed forces reside in Escondido.

Student Housing Need
Student housing is considered a factor that affects housing availability. Although students may produce only temporary housing need, the impact upon housing demand and post-study residence is critical in the immediate university areas. San Diego State University, the largest university in the region, has an enrollment of 33,870 students as of the Fall of 2020, but only provides housing for approximately 3,500 students on campus. The University of San Diego houses approximately 3,800 students on campus for a student enrollment of 8,861 (Fall 2020). The University of California at San Diego provides on-campus housing for about 11,000 students for a student enrollment of 37,629 ( Fall 2019). Other smaller universities and junior colleges in the County create similar housing problems. For example, the location of California State University San Marcos has had some impact on local housing, due to its location a few miles west of Escondido.

Typically, students are low income and are, therefore, impacted by a lack of affordable housing, especially within easy commuting distance from campus. They often seek shared housing situations to decrease expenses, and can be assisted through roommate referral services offered on and off campus. The lack of affordable housing also influences choices students make after graduation which can have a detrimental effect on the region's economy. The recent graduates provide a specialized pool of skilled Resolution No. 2023-31
Exhibit "B"
40 of 291
317
Item18.
labor that is vital to the region; however, the lack of affordable housing often leads to their departure from the area.

Farm Workers
Farm workers are defined as those households whose wage earners make their living through seasonal agricultural work and who move with the seasons to different farming areas or communities. Permanent residents, who work in agriculture doing similar work, but who live in Escondido the entire year, are included in the City’s estimates of households needing assistance due to aff ordability. However, the undocumented immigrant and migrant worker form a substantial part of the farm worker population. The ability to gather information about this segment of the farm worker population is limited because they are so mobile and reluctant to participate in any survey.

Due to the high cost of housing and low wages, a significant number of migrant farm workers have difficulty finding affordable, safe and sanitary housing. According to the State Employment Development Department, the average farm worker earned a mean annual wage of $31,729. 2 This limited income is
exacerbated by their tenuous and/or seasonal employment status.

The housing needs of farm workers are difficult to quantify due to the fear of job loss and the fear of authority. Thus, farm workers are given low priority when addressing housing needs, and often receive the least hospitable housing. The San Diego County Regional Task Force on the Homeless estimates that many of the farm workers in the County live in migrant camps throughout the region.

The 2014-2018 ACS provided a few indicators of the potential farm worker population. The ACS revealed that approximately 1,308 individuals in Escondido were employed in the farming, fishing, and forestry industry. More recent estimates for the number of farm workers, however, vary depending upon the different growing seasons. The National Center for Farmworker Health (“NCFH”) estimates that there are over 12,000 hired farm workers and nearly 2,000 contract farm workers in San Diego County. 3 The numbers can change quickly as more work becomes available. This population remains highly migratory, following the work as it becomes available and even returning home for short periods during the off season. Other estimates of farmworker population come from the U.S. Department of Agriculture (USDA).

According to the USDA’s 2017 Census of Agriculture, 2,202 persons were hired farm labor (full time), 7,982 persons were employed for 150 days or more, and 4,353 were hired for 150 days or less in San Diego County (data is only available at a county level).

The number of encampments located throughout the County has become very difficult to estimate because encampments move frequently and are now much smaller than in the past. It is estimated that there are between 100 and 150 farm worker camps located throughout the San Diego region, primarily in rural areas.4 These encampments range in size from a few people to a few hundred and are frequently found in fields, hillsides, canyons, ravines, and riverbeds, often on the edge of their employer’s property.

Some workers reside in severely overcrowded dwellings, in packing buildings, or in storage sheds.

Because camps tend to be in remote locations, this population is often under-counted. Most farm workers and day laborers have moved from living inside the local jurisdiction’s boundary lines to just outside them in the unincorporated areas. The City of Escondido recognizes the needs of farm workers and allows housing to be partially provided through provisions in the Zoning Ordinance. The City is one of a few 2 State Employment Development Department, Occupational Employment (May 2019) and Wage Data (1st Quarter, 2020). 3 National Center for Farmworker Health, Inc., Migratory and Seasonal Farmworker Population Estimates (2017). 4 California Institute for Rural Studies. The Agricultural Worker Health Study, Case Study 2: North San Diego County (July 2002).

Resolution No. 2023-31
Exhibit "B"
41 of 291
318
Item18.
which allows, as a permitted use in agricultural and estate residential zones, living quarters for persons employed on the premises in conjunction with authorized agricultural uses.

The City completed the development of nine units for farm workers as part of a 24-unit affordable housing complex for low income households in 2001. The project is located at 1801– 1821 South Escondido Boulevard and is called Eucalyptus View Cooperative Apartments. The development provides 24 units of affordable housing to families earning less than 50% of the area median income. The unit mix includes four one-bedroom units, 11 two- bedroom units and eight three -bedroom units. As a limited -equity cooperative, Eucalyptus View provides a form of homeownership. The initial share prices are equivalent to what is typically required for rent and security deposits for a rental unit. Long- term affordability is guaranteed and resale prices are limited to a percentage of annual increases in the equity investment.

Housing Stock Characteristics
A community’s housing stock is defined as the collection of all housing units located within the jurisdiction.

The characteristics of the housing stock, including growth, type, age and condition, tenure, vacancy rates, housing costs, and affordability are important in determining the housing needs for the community. This section details the housing stock characteristics of Escondido to identify how well the current housing stock meets the needs of current and future residents of the City.

Housing Growth
During the 1980s and 1990s, the City’s housing stock grew significantly that led to the City implementing several growth management policies that dramatically limited the number of units that could be built each year in order to ensure the provision of adequate facilities and services prior to development of future housing stock. As a result, the rate of housing growth declined sharply between 2000 and 2010, at less than seven percent (Table 24). The decrease in housing production also occurred as a result of the recession. While there were building permits available to be pulled for units in some of the large subdivisions, developers chose not to build due to the decline in the market.

Recovery from the recession had been slow. While several neighboring jurisdictions experienced large increases in their housing stock over the last 20 years, such as Carlsbad and San Marcos, oth ers jurisdictions, including Escondido, experienced only moderate increases. Table 24 shows that between 2010 to 2020, Escondido’s housing stock increased only 2.4%, below the countywide average (5.3%) and significantly below the nearby Carlsbad and San Marcos, where housing growth exceeded six percent and 13%, respectively.

Resolution No. 2023-31
Exhibit "B"
42 of 291
319
Item18.

Table 24: Housing Unit Growth (2000 to 2020)
Jurisdiction 2000 2010 2020 Percent Change
2000-2010 2010-2020
Carlsbad 33,812 44,673 47,629 32.1% 6.6%
Encinitas 23,829 25,740 26,625 8.0% 3.4%
Escondido 45,050 48,044 49,211 6.7% 2.4%
Oceanside 59,583 64,435 66,078 8.1% 2.6%
Poway 15,714 16,715 16,932 6.4% 1.3%
San Marcos 18,862 28,641 32,460 51.8% 13.3%
Vista 29,814 30,986 32,874 3.9% 6.1%
San Diego Region 1,040,149 1,164,786 1,226,879 12.0% 5.3% Source: Bureau of the Census, 2000 and 2010 Censuses; California Department of Finance, 2020 Population and Housing Estimates.

Projected Housing Units
Table 25 shows that between 2020 and 2030, Escondido is projected to gain 12 % in housing stock.

Regionwide, approximately ten percent more units will be added to the housing stock. Between 2020 and 2040, Escondido is projected to see an increase of 13% in housing stock and approximately 17% more units will be added in the region.

Table 25: Projected Housing Units (2020-2040)
Jurisdiction 2020
(Actual) 2030 2040 Percent Change
2020-2030 2020-2040
Carlsbad 47,629 49,629 50,491 4.2% 6.0%
Encinitas 26,625 26,646 27,100 0.1% 1.8%
Escondido 49,211 55,322 55,826 12.4% 13.4%
Oceanside 66,078 69,506 70,612 5.2% 6.9%
Poway 16,932 17,406 17,714 2.8% 4.6%
San Marcos 32,460 35,758 37,401 10.2% 15.2%
Vista 32,874 34,028 37,280 3.5% 13.4%
San Diego Region 1,226,879 1,348,802 1,434,653 9.9% 16.9% Source: California Department of Finance, 2020 Population and Housing Estimates & SANDAG Regionwide 2050 Forecast Series

13. Housing Type
Figure 4 shows that in 2020, the largest percentage (51%) of housing units in Escondido was single- family detached units. Approximately six percent were single-family attached units, 36% were multi-family developments, and eight percent were mobile homes/trailers.

Resolution No. 2023-31
Exhibit "B"
43 of 291
320
Item18.

Figure 4: Housing Types (2020)

Table 26 shows that the proportion of both single-family units and mobile homes in Escondido is projected to decrease slightly, while the proportion of multi-family units is expected to increase. However, this figure may be misleading because SANDAG forecasts mobile homes by determining the region’s mobile home growth rate and applying it to each jurisdiction.

Table 26: Projected Housing Unit by Type (2020-2040)
Housing Type 2020 % of
Total
2030
(Projected)
% of
Total
2040
(Projected)
% of
Total
Single-Family 27,878 56.6% 28,474 51.5% 28,670 51.4%
Multi-Family 17,537 35.6% 23,109 41.8% 23,417 41.9%
Mobile Homes 3,796 7.7% 3,739 6.8% 3,739 6.7%
Total Housing 49,211 100.0% 55,322 100.0% 55,826 100.0% Source: California Department of Finance, 2020 Population and Housing Estimates; SANDAG Regionwide Forecast 2050, Series

13. 0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Single-
Family
Detached
Single-
Family
Attached
Multi-
Family
Mobile
Homes
Escondido 50.6% 6.1% 35.6% 7.7%
San Diego Region 50.8% 8.7% 36.8% 3.8%
Resolution No. 2023-31
Exhibit "B"
44 of 291
321
Item18.

Housing Availability and Tenure
Housing tenure and vacancy rates are important indicators of the supply and cost of housing. Housing tenure refers to whether a unit is owned or rented. Tenure is an important market characteristic because it is directly related to housing types and turnover rates. The tenure distribution of a community’s housing stock can be an indicator of several aspects of the housing market, including the affordability of units, household stability and residential mobility among others. In most communities, tenure distribution generally correlates with household income, composition and age of the householder.

In 2010, among the City’s occupied housing units, approximately 52% were owner-occupied, while 48% were renter-occupied (Table 27) . According to the 2014- 2018 ACS, the home ownership rate in Escondido decreased slightly to 51% of the occupied units. Renter-occupied housing units made up almost 49% of the City’s occupied housing stock. Approximately four percent of total housing units were vacant.

Table 27: Tenure of Occupied Housing Units (2010-2018)
Tenure 2010 Census 2014-2018 ACS
Number Percent Number Percent
Owner Occupied 23,759 52.2% 23,426 50.6%
Renter Occupied 21,725 47.8% 22,912 49.4%
Total 45,484 100.0% 46,338 100.0%
Sources: Bureau of the Census, 2010 Census; American Community Survey, 2014-2018.

Renter-occupied households had a slightly higher average household size than owners (Table 28).

Approximately 54% of households with four or more persons were renter-households. In 2010, average renter-household size was 3.26 persons compared to 2.99 persons per for the average owner-household.

In 2018, average renter-household size increased to 3.28 persons compared to 3.15 persons for the average owner-household, narrowing the discrepancy in average household size based on tenure.

Table 28: Household Size by Tenure (2018)
1-3 Persons 4+ Persons Total
Number Percent Number Percent Number Percent
Owner 16,243 52.9% 7,183 46.0% 23,426 50.6%
Renter 14,472 47.1% 8,440 54.0% 22,912 49.4%
Total 30,715 100.0% 15,623 100.0% 46,338 100.0%
Source: American Community Survey, 2014-2018.

Vacancy rates are an important housing indicator because they indicate the degree of choice available.

High vacancy rates usually indicate low demand and/or high supply conditions in the housing market. Too high of a vacancy rate can be difficult for owners trying to sell or rent. Low vacancy rates usually indicate high demand and/or low supply conditions in the housing market. Too low of a vacancy rate can force prices up making it more difficult for low and moderate income households to find housing.

Vacancy rates between two to three percent are usually considered healthy for single-family housing; and five to six percent for multi-family housing. However, vacancy rates are not the sole indicator of market conditions. They must be viewed in the context of all the characteristics of the local and regional market.

Resolution No. 2023-31
Exhibit "B"
45 of 291
322
Item18.

According to the 2014-2018 ACS, the overall vacancy rate in Escondido was four percent. Specifically, ownership housing had a vacancy rate of one percent while the rental vacancy rate was 3.5%.

Additional vacancy information was obtained for Spring 2019 from the San Diego County Apartment Association (“SDCAA”) and is shown in Table 29. Vacancy rates in Escondido were similar to those in the Northern San Diego County region.

Table 29: Vacancy Rates and Property Age (2019)
Jurisdiction Combined Property Ages Over 25 Years 6 to 25 Years Less than 6 Years %
Vacant
Total
Units
#
Vacant
%
Vacant
Total
Units
#
Vacant
%
Vacant
Total
Units
#
Vacant
%
Vacant
Total
Units
#
Vacant
Carlsbad 1.9% 526 10 1.9% 526 10 -- -- -- -- -- --
Del Mar 6.1% 246 15 7.4% 202 15 -- -- -- -- -- --
Encinitas 0.0% 10 0 0.0% 10 0 -- -- -- -- -- --
Escondido 3.9% 535 21 2.8% 250 7 5.0% 202 10 -- -- --
Oceanside 3.9% 487 19 3.2% 282 9 0.0% 4 0 -- -- --
Solana
Beach 1.1% 176 2 1.1% 176 2 -- -- -- -- -- --
N. County
Region 4.0% 3,730 148 3.5% 2,628 93 4.9% 206 10 0.0% 0 0 San Diego
City 4.0% 9,544 378 3.6% 4,374 157 3.4% 1,944 66 11.1% 1,002 111 SD Region 4.1% 23,000 936 -- -- -- -- -- -- -- -- --
Source: San Diego County Apartment Association Survey, Spring 2019.

Housing Age and Condition
Housing age can be an important indicator of housing condition within a community. Like any other tangible asset, housing is subject to gradual physical or technological deterioration over time. If not properly and regularly maintained, housing can deteriorate and discourage reinvestment, depress neighboring property values, and eventually impact the quality of life in a neighborhood. Many federal and state programs also use the age of housing as one factor in determining housing rehabilitation needs. Typically, housing over 30 years of age is more likely to have rehabilitation needs that may include new plumbing, roof repairs, foundation work and other repairs. Although the Censuses did not include statistics on housing condition based upon observations, they did include statistics that correlate very closely with substandard housing.

The three factors most commonly used to determine housing conditions are age of housing, overcrowding, and lack of plumbing and kitchen facilities. Table 30 shows that in 2018 approximately 88% of the housing stock was more than 20 years old and 76% was over 30 years old. Table 31 provides estimates of substandard housing conditions in the City.

Resolution No. 2023-31
Exhibit "B"
46 of 291
323
Item18.

Table 30: Year Housing Built (2018)
Year Built Number Percent
2014 or later 243 0.5%
2010-2013 672 1.4%
2000-2009 4,741 9.8%
1990-1999 6,045 12.5%
1980-1989 13,327 27.6%
1970-1979 12,433 25.8%
1960-1969 6,206 12.9%
1950-1959 2,872 6.0%
1940-1949 646 1.3%
1939 or earlier 1,083 2.2%
Total 48,268 100.0%
Source: American Community Survey, 2014-2018.

Table 31: Substandard Units (2018)
Number Percentage
Lacking complete plumbing facilities 224 0.5%
Lacking complete kitchen facilities 387 0.8%
Total occupied substandard units 611 1.3%
Total occupied units: 46,338
Sources: American Community Survey, 2014-2018.

Housing that is not maintained can discourage reinvestment, depress neighboring property values, and can negatively impact the quality of life in a neighborhood. Improving housing is an important goal of the City. The age of the City’s housing stock indica tes a potential need for continued code complianc e, property maintenance and housing rehabilitation programs to stem housing deterioration.

Because substandard housing can cause serious health and safety issues, physical defects should not be used as the only indicator of substandard housing. The Housing Division considers housing units in compliance with local building codes to be standard units. Any housing unit that does not meet these requirements is considered substandard. Common housing code violations make a unit unsafe and/or unsanitary, including problems with electrical wiring, plumbing, windows, roofs and exterior, and heating and air conditioning systems. The City’s Housing Rehabilitation program assists an average of 22 households annually given funding limitations and receives 5-10 calls per month seeking assistance for rehabilitation. The City estimates that in any given year, about 300 units may be considered substandard and requiring rehabilitation. Escondido's substandard units are all suitable for rehabilitation.

Resolution No. 2023-31
Exhibit "B"
47 of 291
324
Item18.

Housing Cost and Affordability
Housing costs are indicative of housing accessibility to all economic segments of the community.

Typically, if housing supply exceeds housing demand, housing costs will fall. If housing demand exceeds housing supply, housing costs will rise. This section summarizes the cost and affordability of the housing stock to Escondido residents.

Homeownership Market
Median home prices in the North County areas of San Diego ranged from $579,500 in Oceanside to $1,200,000 in Encinitas (Figure 5). Median home sale prices in Escondido increased 13% between 2019 and 2020 (Table 32). All neighboring communities and the County, other than Encinitas, saw similar increases in median home sale prices.

Figure 5: Median Home Price (2020)

Source: Corelogic.com California Home Sale Activity by City, August 2020.

$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Carlsbad Encinitas Escondido Oceanside Poway San Marcos Vista SD County $898,000
$1,200,000
$610,000 $579,500
$850,000
$652,500
$590,000 $640,000
Table 32: Changes in Median Home Sale Prices (2020)
Jurisdiction 2020 Percent Change in Median
Sale Price 2019-2020 Number Sold Price
Carlsbad 237 $898,000 10.9%
Encinitas 79 $1,200,000 -7.3%
Escondido 230 $610,000 13.0%
Oceanside 275 $579,500 9.3%
Poway 53 $850,000 21.4%
San Marcos 162 $652,500 10.6%
Vista 144 $590,000 13.2%
San Diego Region 4,122 $640,000 9.4%
Source: Corelogic.com California Home Sale Activity by City, August 2020.

Resolution No. 2023-31
Exhibit "B"
48 of 291
325
Item18.

Rental Market
The primary source of information on rental costs in the San Diego region is the San Diego County Apartment Association (“SDCAA”). SDCAA conducts two surveys of rental properties per year. For the Spring 2019 survey, 6,000 surveys were sent out to rental property owners and managers throughout San Diego County. Responses were received for 23,000 units. Although this survey sampled a broad variety of rental housing, it was not a scientific sampling. Table 33 shows that in the Spring of 2019, average monthly rents in Escondido ranged from $1,490 for a one-bedroom apartment to $2,273 for a three-bedroom apartment. Apartment rents tend to be slightly lower in Escondido than those in the County of San Diego.

Resolution No. 2023-31
Exhibit "B"
49 of 291
326
Item18.

Table 33: Average Monthly Rent (2019)
Zip Code Unit Type
Spring 2019
Units/
Properties
Surveyed
Spring 2019
Monthly
Rent
Spring 2019
Rent/Sq.

Foot
Fall 2018
Monthly
Rent
Spring
2018
Monthly
Rent
Carlsbad
92008, 92009,
92010, 92011
Studio 11/3 $1,214 $3.26 $1,099 $1,081
1 BR 44/4 $1,724 $2.60 $1,457 $1,635
2 BR 457/6 $2,546 $2.53 $2,685 $2,448
3+ BR 14/2 $2,937 $2.36 -- $2,561
Encinitas
92023, 92024
Studio 0/0 -- -- -- $1,289
1 BR 4/1 $1,800 $3.27 $1,295 $1,581
2 BR 5/2 $2,100 $2.98 $2,145 $1,840
3+ BR 1/1 $1,350 $0.96 $2,150 $2,150
Escondido
92025, 90026, 90027,
90029, 90030, 90033,
90046
Studio 0/0 -- -- -- --
1 BR 168/4 $1,490 $2.17 $1,462 $1,138
2 BR 322/7 $1,901 $1.82 $1,728 $1,701
3+ BR 45/9 $2,273 $1.68 $1,784 $2,143
Oceanside
92049, 92050, 92051,
92052, 92054, 92056,
92057, 92058
Studio 43/4 $1,298 $3.02 $1,620 $1,123
1 BR 257/9 $1,420 $2.46 $1,503 $1,529
2 BR 184/11 $1,817 $2.03 $1,774 $1,844
3+ BR 3/3 $1,960 $1.38 $2,195 $1,995
Poway
92064
92074
Studio 0/0 -- -- -- --
1 BR 12/1 $1,695 $2.42 -- $1,000
2 BR 40/1 $1,885 $1.98 -- --
3+ BR 0/0 -- -- $2,350 --
San Marcos
92069
92073
92076-79
Studio 27/1 $1,905 $3.30 -- --
1 BR 39/1 $2,030 $2.93 $1,021 $1,387
2 BR 95/3 $2,089 $2.10 -- $1,586
3+ BR 40/2 $2,297 $2.06 $1,650 $1,500
Vista
92081
92083-85
Studio 140/3 $1,278 $2.65 $1,313 $1,247
1 BR 614/5 $1,580 $2.15 $1,636 $1,595
2 BR 679/8 $1,775 $1.89 $1,863 $1,799
3+ BR 57/4 $2,051 $1.74 $2,493 $1,881
County of San Diego
(including City of San
Diego)
Studio 659/56 $1,315 $3.03 -- --
1 BR 8265/221 $1,684 $2.48 -- --
2 BR 12143/301 $2,071 $2.04 -- --
3+ BR 1933/121 $2,526 $2.01 -- --
Source: San Diego County Apartment Association Survey, Spring 2019.

Resolution No. 2023-31
Exhibit "B"
50 of 291
327
Item18.

Housing Affordability by Income Level
Housing affordability can be inferred by comparing the cost of renting or owning a home in the City with the maximum affordable housing costs for households at different income levels. Taken together, this information can generally show who can afford what size and type of housing and indicate the type of households most likely to experience overcrowding and overpayment.

Table 34 shows the maximum amount that a household can pay for housing each month without incurring a cost burden (over-payment). This amount can be compared to current housing asking prices (Table 32) and market rental rates (Table 33) to determine what types of housing opportunities a household can afford.

Extremely Low Income Households
Extremely low income households earn 30% or less of the County area median income – up to $24,300 for a one-person household and up to $34,650 for a five-person household in 2020. Extremely low income households cannot afford market-rate rental or ownership housing in Escondido without assuming a cost burden.

Very Low Income Households
Very low income households earn between 31% and 50% of the County area median income – up to $40,450 for a one-person household and up to $57,750 for a five-person household in 2020. Given the costs of ownership housing in Escondido, very low income households would not be able to afford a home in the City. Similarly, very low income renters could not afford appropriately-sized market-rate rental units in the City.

Low Income Households
Low income households earn between 51% and 80% of the County’s area median income - up to $64,700 for a one-person household and up to $92,400 for a five-person household in 2020. Based on the asking prices of homes for sale in 2020 (Table 32), ownership housing would not be affordable to low income households. As of Spring 2019, most low income households in Escondido would not be able to find adequately sized affordable apartment units (Table 33).

Moderate income Households
Moderate income households earn between 81% and 120% of the County’s Area Median Income – up to $111,250 depending on household size in 2020. Moderate income households in Escondido would have trouble purchasing adequately-sized homes. Appropriately-sized market-rate rental housing is generally affordable to households in this income group.

Resolution No. 2023-31
Exhibit "B"
51 of 291
328
Item18.

Table 34: Affordable Housing Cost (2020)
Annual Income
Affordable
Housing
Cost
Utilities, Taxes, and
Insurance Affordable Price
Utilities Taxes/Insurance Sale Rent
Extremely Low Income (30% of Area Median Income)
1-Person $24,300 $608 $164 $213 $60,846 $444
3-Person $27,750 $694 $198 $243 $66,792 $496
4-Person $31,200 $780 $240 $273 $70,498 $541
5-Person $34,650 $866 $283 $303 $73,809 $583
Very Low Income (50% of Area Median Income)
1-Person $40,450 $1,011 $164 $354 $130,009 $847
3-Person $46,200 $1,155 $198 $404 $145,806 $958
4-Person $52,000 $1,300 $240 $455 $159,576 $1,061
5-Person $57,750 $1,444 $283 $505 $172,736 $1,161
Low Income (80% of Area Median Income)
1-Person $64,700 $1,618 $164 $566 $233,862 $1,454
3-Person $73,950 $1,849 $198 $647 $264,647 $1,651
4-Person $83,200 $2,080 $240 $728 $293,192 $1,841
5-Person $92,400 $2,310 $283 $809 $321,128 $2,027
Median Income (100% of Area Median Income)
1-Person $64,900 $1,623 $164 $568 $234,719 $1,459
3-Person $74,150 $1,854 $198 $649 $265,504 $1,656
4-Person $83,450 $2,086 $240 $730 $294,263 $1,847
5-Person $92,700 $2,318 $283 $811 $322,413 $2,035
Moderate Income (120% of Area Median Income)
1-Person $77,900 $1,948 $164 $682 $290,392 $1,784
3-Person $89,000 $2,225 $198 $779 $329,100 $2,028
4-Person $100,150 $2,504 $240 $876 $365,782 $2,264
5-Person $111,250 $2,751 $283 $973 $401,855 $2,498
Source: CA Dept. of Housing and Community Development (2020) and Veronica Tam & Associates Assumptions: 2020 HCD income limits; 30% gross household income as affordable housing cost; 35% of monthly affordable cost for taxes and insurance; 10% down payment; and 3% interest rate for a 30-year fixed-rate mortgage loan. Utilities based on San Diego County Utility Allowance
Resolution No. 2023-31
Exhibit "B"
52 of 291
329
Item18.

3. Affordable Housing
State law requires that the City identify, analyze, and propose programs to preserve existing multi-family rental units that are eligible to convert to non-low-income housing uses due to termination of subsidy contract, mortgage prepayment, or expiring use restrictions during the next ten years. Thus, this at-risk housing analysis covers the period from June 30, 2020 through April 15, 2029. Consistent with State law, this section identifies publicly assisted housing units in Escondido, analyzes their potential to convert to market rate housing uses, and analyzes the cost to preserve or replace those units.

Publicly Assisted Housing
The City of Escondido has a large inventory of publicly assisted rental housing affordable to lower and moderate income households. Table 35 provides a summary listing of affordable projects in the City.

Overall, 25 projects (totaling 1,659 rental housing units) include affordable units. Specifically, 1,642 units are set aside as housing for lower and moderate income households.

Table 35: Inventory of Assisted Rental Housing Projects Name of Project Total Units Assisted
Units
Funding
Source Type2 Earliest
Conversion
15th Avenue Cooperative
1500 Orange Place 32 32 T, H Family 2037
Aster Street
518-524/526-532 Aster Street 8 8 R, H Family 2034
Aster Street
557-563 Aster Street 4 4 H Family 2072
Avocado Court
215 E El Norte Parkway 36 35 R, H, T Family 2067
Cobblestone Village Apartments
360 E Washington Avenue 44 43 R, T, C Family 2055
Daybreak Grove
1256 E Washington Avenue 13 13 R, T Family 2054
Emerald Garden Townhomes
425 W 11th Avenue 16 16 R, H, T Family 2053
Escondido Garden Apartments
500 N Midway Drive 92 91 T Seniors 10/31/2038
Eucalyptus View Coop
1805 S. Escondido Blvd 24 24 H, T Family 2041
Juniper Senior Village
215 E Washington Avenue 61 60 R, T, H, C Seniors 2076
Las Ventanas
1404 S Escondido Boulevard 80 80 R, T Family 2063
Manzanita
260 N Midway Drive 200 198 H, T Family 2070
Orange Place Apartments
1611 S Orange Place 15 15 R, H, T Family 2068
Silvercrest Residence
1303 Las Villas Way 75 74 HUD 202 Rental 4/30/2022
Solutions Escondido 33 32 R, T Family 2070
Resolution No. 2023-31
Exhibit "B"
53 of 291
330
Item18.

Table 35: Inventory of Assisted Rental Housing Projects Name of Project Total Units Assisted
Units
Funding
Source Type2 Earliest
Conversion
1560 E Escondido Boulevard
Sonoma Court
508 E Mission Avenue 61 60 R, H, T Family 2054
Summit Rose Apartments
460 E Washington Avenue 91 89 T Family 2070
Sunrise Place
1245 E Grand Avenue 8 8 R, T Family 2054
The Crossings @ Escondido
735 Mission Grove Place 55 54 R, T Family 2065
The Crossings @ Escondido Manor
1150-1166 N Escondido Boulevard 44 43 R, H, T Family 2070 The Terraces
1301 Morning View Drive 190 190 R, T Family 2051
Veterans Villas
1538-1540 S Escondido Blvd 54 53 R Veteran 2075
Via Roble
1553 S Escondido Boulevard 72 71 R, T, C Family 2068
Villa Escondido
511 E Grand Avenue 112 112 T Senior 2041
Village Grove Apartments
600 N Quince Street 161 160 T Family 2054
Windsor Gardens
1600 W Ninth Avenue 132 130 R, T Seniors 2074
R = Redevelopment Funds; H = HOME; C = CDBG; T = Low Income Housing Tax Credit Source: City of Escondido.

Preservation of At-Risk Housing
Within the 2021-2031 “at-risk” housing analysis period, only Silvercrest is at low risk of converting to market rate housing. Though Silvercrest’s earliest date of conversion is in 2022, the City considers the risk of conversion low because the project is being managed by a non-profit organization (The Salvation Army), which has the mission to provide permanent affordable housing. Furthermore, HUD has established priority for the renewal of project-based Section 8 assistance for housing for seniors and persons with disabilities.

Preservation and Replacement Options
To maintain the existing affordable housing stock, the City works to preserve the existing assisted units or facilitate the development of new units. Depending on the circumstances of the at-risk projects, different options may be used to preserve or replace the units. Preservation options typically include: 1) transfer of units to non-profit ownership; 2) provision of rental assistance to tenants using other funding sources; and 3) purchase of affordability covenants. In terms of replacement, the most direct option is the development of new assisted multi-family housing units.

Resolution No. 2023-31
Exhibit "B"
54 of 291
331
Item18.

Transfer of Ownership
Transferring ownership of an at-risk project to a non-profit housing provider is generally one of the least costly ways to ensure that the at-risk units remain affordable for the long term. By transferring property ownership to a non-profit organization, low income restrictions can be secured and the project would become potentially eligible for a greater range of governmental assistance. However, Silvercrest is already a nonprofit-owned project; therefore, this option is not necessary. Specifically, because Silvercrest is a nonprofit senior housing project, it is at low risk of converting to market-rate housing.

Rental Assistance
Tenant-based rent subsidies could be used to preserve the affordability of housing. Similar to Section 8 vouchers, the City, through a variety of potential funding sources, could provide rent subsidies to tenants of at-risk units. The level of the subsidy required to preserve the at-risk units is estimated to equal the Fair Market Rent (“FMR”) for a unit minus the housing cost affordable by a lower income household.

The 2021 FMR for a one-bedroom unit in Escondido is $1,540. As shown in Table 34, a very low income one-person household can generally afford about $850 in rent, leaving an affordability gap of about $690 ($51,060 month for the 74 units or $612,720 annually).

Purchase of Affordability Covenants
Another option to preserve the affordability of the at-risk project is to provide an incentive package to the owner to maintain the project as affordable housing. Incentives could include writing down the interest rate on the remaining loan balance, providing a lump-sum payment, and/or supplementing the rents to market levels. The feasibility and cost of this option depends on whether the complex is too highly leveraged and interest on the owner’s part to utilize the incentives found in this option.

Construction of Replacement Units
The construction of new low income housing units is a means of replacing the at-risk units should they be converted to market-rate units. The cost of developing housing depends upon a variety of factors, including density, size of the units (i.e., square footage and number of bedrooms), location, land costs, and type of construction. With an estimated construction/land cost of $350,000 per unit, the 75-unit Silvercrest would cost $26.3 million to replace.

Resources for Preservation
Owners of government-assisted developments cannot terminate subsidy contracts, prepay a federally assisted mortgage, or discontinue use restrictions without first providing an exclusive "notice of opportunity to submit an offer to purchase" to potential purchasers using HCD’s list of Qualified entities.

The List of current Qualified Entities is maintained and updated by HCD and is subject to change – (https://www.hcd.ca.gov/policy-research/preserving-existing-affordable-housing.shtml). Current entities on the list include:
• Innovative Housing Opportunities
• Nexus for Affordable Housing
• TELACU
• San Diego County Department of Housing and Community Development Services • Housing Development Partners of San Diego

Resolution No. 2023-31
Exhibit "B"
55 of 291
332
Item18.

4. Housing Constraints
Constraints to the provision of housing affect the development of new housing and the maintenance of existing units for all income levels. Governmental and non-governmental constraints in Escondido are similar to those in other jurisdictions in the region and are discussed below. One of the most, if not the most, significant and difficult constraints to housing in Escondido and elsewhere in the San Diego region is the high cost of land. This section describes various market, governmental, and environmental constraints on the development of housing that meets the needs of all economic segments of Escondido population.

Market Influences
Market constraints significantly affect the cost of housing in Escondido and can pose barriers to housing production and affordability. These constraints include the availability and cost of land for residential development, the demand for housing, financing and lending, construction costs, development fees, and neighborhood opposition which can make it expensive for developers to build affordable housing. The following highlights the primary market factors that affect the production of housing in Escondido.

Land and Construction Costs
Raw land and improvements costs comprise approximately 40% of the total development costs of a residential dwelling. Land prices in Escondido have risen significantly in recent years. However, land costs in Escondido are generally less when compared to land costs in many other areas of San Diego County. Furthermore, raw land values must be considered in relation to costs rising from the provision of adequate facilities and services, and the City's efforts to encourage redevelopment and rehabilitation will help lower costs where facilities and services are already provided.

The lack of vacant land for residential construction, especially land available for higher density residential development, has served to keep the cost of land high. Based on listings at Zillow.com, land near the downtown areas ranges from $335,000 per acre to up to $ 1.8 million per acre. 5 Land
outside of the urban core ranged from $80,0000 to $155,000 per acre (and larger lots were available ranging from 1.5 to 5 acres).

Basic construction costs for residential developments have rapidly increased, and together with land prices, have increased the cost of housing, making homeownership unattainable for many households. These costs are relatively constant over the region. The basic components of labor and material do not fluctuate much by area. Site preparation costs can be substantial, but the variations are more a function of the site, than of the jurisdiction. The Freeman Construction Inc. Custom Home Building Home Guide in San Diego County estimates that site costs can range from $75,000 to $150,0006.

One indicator of construction costs is Building Valuation Data compiled by the International Code Council (ICC). The unit costs compiled by the ICC include structural, electrical, plumbing, and mechanical work, in addition to interior finish and normal site preparation. The data are national and do not take into account regional differences, nor include the price of the land upon which the building 5 Land size available at urban/downtown center at time of survey was less than one acre. 6 https://tfgonline.com/wp-content/uploads/2020/09/custom-home-building-cost-guide-in-san-diego-county-by-freemans-construction- inc.pdf
Resolution No. 2023-31
Exhibit "B"
56 of 291
333
Item18.
is built. In 2020, according to the latest Building Valuation Data release, the national average for development costs per square foot for apartments and single-family homes in 2020 are as follows:
• Type I or II, R-2 Residential Multifamily: $148.82 to $168.94 per sq. ft. • Type V Wood Frame, R-2 Residential Multifamily: $113.38 to $118.57 per sq. ft. • Type V Wood Frame, R-3 Residential One and Two Family Dwelling: $123.68 to $131.34 per sq. ft.
• R-4 Residential Care/Assisted Living Facilities generally range between $143.75 to $199.81 per sq. ft.

Local estimates from the ProMatcher 2018 Cost Report estimated building costs in 2018 as ranging from $128.71 - $191.11 per square foot in Escondido.
7 The City has no influence over materials and labor costs, and the building codes in Escondido are not substantially different than most other cities in San Diego County. In recent years, construction costs for materials and labor have increased at a slightly higher pace than the general rate of inflation according to the Construction Industry Research Board.

Availability of Financing
The availability of financing affects a person’s ability to purchase or improve a home. Under the Home Mortgage Disclosure Act (“HMDA”), lending institutions must disclose information on the disposition of loan applications by the income, gender, and race of the applicants involving home purchases, improvements and refinancing, whether financed at market rate or with government assistance.

The disposition of loan applications submitted to financial institutions in 2017 for home purchase, refinance, and home improvement loans in Escondido is summarized in Table 36. Included is information on loan applications that were approved and originated, approved but not accepted by the applicant, denied, and withdrawn by the applicant or incomplete. Overall, home purchase financing is available but home improvement financing is more limited.

Table 36: Disposition of Home Loans (2017)
Loan Type Total
Applicants Originated Approved Not
Accepted Denied Withdrawn/
Other
Conventional - Purchase 2,335 67.1% 4.1% 9.8% 19.0%
Government-Backed - Purchase 1,131 71.4% 3.8% 9.7% 15.1% Home Improvement 545 52.3% 2.8% 27.0% 18.0%
Refinance 4,414 52.5% 2.6% 18.3% 26.6%
Total 8,426 59.0% 3.2% 15.3% 22.4%
Source: Lendingpattern.com
“Percent Other” includes withdrawn or incomplete applications Impacts of COVID-19
With the outbreak of the COVID-19 pandemic, over 26 million unemployment insurance claims were filed between March 15 and April 18 at the start of stay -at-home orders as reported by the US 7 Price range takes into account building a new home labor. Does include permitting, pouring the foundation, standard building materials, basic finishes, and cleanup. Cost does not include purchasing the land, blueprints, premium upgrades (granite countertops, spray foam insulation, etc.), modular homes, deep foundations, and deck construction. Reported by: ProMatcher Research Team. https://home- builders.promatcher.com/cost/san-diego-ca-home-builders-costs-prices.aspx Resolution No. 2023-31
Exhibit "B"
57 of 291
334
Item18.

Department of Labor. In response Congress passed major relief bills including the $2 trillion CARES Act, which includes benefits and expanded eligibility for unemployment insurance, forgivable small - business loans, economic relief payments sent directly to most US households, aid to state and local governments, and increased funding for housing assistance and other safety net programs.

The Census Bureau along with other governmental agencies partnered to design the Household Pulse Survey to publish data in as close to real time as possible during the COVID-19 pandemic. The survey provides vital insights on how American households are affected and coping during the pandemic. The Census Bureau expects to collect data for 90 days and release data weekly. One such way the Census Bureau is measuring household experiences during the coronavirus pandemic is through the Household Pulse Survey. Household Pulse Survey results have been reported for State and Metropolitan Area geographies but data for the San Diego Metropolitan Area only has not been reported. Results for the Week 23 Survey (Week of January 20 to February 1, 2021) showed that

56.3% (16.8 million) of adults in California reported that they or someone in their household had experienced a loss of employment income since March 13, 2020. About 10.3 million adult respondents (34.7%) also expected themselves or someone in their household to lose employment income in the next 4 weeks.

In the San Diego region, multiple reports have been completed by the SANDAG to show the impacts of COVID-19. On October 15, 2020 SANDAG published the “COVID-19 Impacts on The San Diego Regional Economy” report showing a six -month economic analysis since the Stay at Home Order.

According to this report, an estimated 176,000 workers were unemployed due to COVID -19 in the San Diego region with lower income workers more likely to be out of work compared to middle and high income workers. Pre-COVID, the region had just over 50,000 unemployed workers. The report also identified the Tourism, Retail, and Education sectors as disproportionally affected by COVID-19.

These sectors lost an estimated 141,000 workers, representing 80% of those unemployed due to COVID-19 in the region. Females in the Education sector and Hispanic workers were also found to be more likely to lose their jobs in the Tourism sector during this period.

SANDAG also reported on June 16, 2020 that Black and Hispanic communities had been disproportionally impacted by COVID -19 throughout the County. These minorities account for a significant portion of essential workers who continued to go to work, and those who became unemployed in Tourism and “non-essential” Retail sectors due to the pandemic. Black and Hispanic populations were four times as likely to live in areas that had been impacted by COVID -19 and unemployment than White population and twice as likely when compared to the Asian population.

Overall, the southern part of the County is also most affected by both the highest unemployment rates and highest percentage of COVID-19 cases in the region. Before the pandemic, areas in the southern region now most affected by the pandemic also reported household income of less than $45,000 and a large share of families with children. The report classified ZIP codes with high unemployment rates and high percentages of COVID-19 cases as “hardest hit” areas.

As of June 1, 2020, Escondido was identified among the hardest hit ZIP codes . Of the ZIP codes reported, South Escondido ranked 16
th in unemployment level and 24th in COVID-19 cases and East Escondido ranked 25th in unemployment level and 39th in COVID-19 cases. As of July 25, 2020 (the most recent data), Escondido remained among the hardest hit zip codes.

Timing and Density
Non-governmental market constraints can also include timing between project approval and requests for building permits. In most cases, this may be due to developers’ inability to secure financing for Resolution No. 2023-31
Exhibit "B"
58 of 291
335
Item18.
construction. In Escondido, the average time between project approval /entitlement and request for building permit is typically two to six months.

Requests to develop below the maximum or target densities may also be indicators of non- governmental constraints. The Fifth Cycle Housing Element assumed that H ousing Element sites would develop at approximately 75% of the maximum allowed in the Downtown Specific Plan Area and 70% in all other sites. A review of residential and mixed-use projects proposed, approved, and constructed over the Fifth Cycle Housing Element found that projects averaged 80% maximum density in the Downtown Area (SP 9) and all other zonings averaged 90%, which is higher than as assumed in the Fifth Cycle sites inventory (Table 37).

Table 37: Project Development Yield Trends by Zoning
Zoning Max Density Allowed Average Yield % of Max
RE-30 1.5 102%
PD-R-1.9 1.9 99%
RE-20 2.2 82%
R-1-10 4.3 67%
R-1-7 6.2 66%
R-1-6 7.3 66%
R-1-X 7.3 40%
R-2-12 12 111%
R-3-18 18 140%
U-3 (GPA) - Was RE-20 18 98%
S-P 24-30 123%
SP-9 (Downtown) 75-100 80%
Average Yield % of all Projects 88%
In the Sixth Cycle Housing Element, the realistic capacity assumptions were adjusted to show the proposed East Valley Specific Plan Land Use target production points (Table 38). While there have been no residential projects under the E VSP yet, it is expected that projects will reach at least the target production point density to avoid paying fees. For areas outside of the EVSP, the realized densities averaged 88% of the maximum allowable density (see Table 37 above) and averaged 90% in lower density zones and 80% in higher density zones ( Table 37 and Table 38). While recent production trends indicate that site capacity could reasonably be estimated at 88% of the maximum density allowed by zoning, some developments will likely be built at lower densities , so conservative assumptions were used. Additional discussion of development trends can be found under the Housing Resources Section (Development Trends, Yields, and Realistic Capacity for Housing).

Resolution No. 2023-31
Exhibit "B"
59 of 291
336
Item18.

Table 38: Assumed Realistic Capacities by Density range Density Range Assumed Realistic Density (% of Max) Average Realized Density (Fifth Cycle) EVSP
21-30 (Urban IV/V) 83%1 N/A
20-80 (Mixed-use) 56%2 N/A
Non-EVSP
0-45 75% 90%3
46-100 62.5% 80%4
1 Based on 25 du/ac target production point (i.e. with a TPP of 25 du/ac, developments achieve at least 83% max density allowed) 2 Based on 45 du/ac target production point
3 Based on average of past projects with density range 0-30 (see Table 37) 4 Based on average of past projects with density range 75-100 (see Table 37) Governmental Constraints
Aside from market factors, housing affordability is also affected by factors in the public sector. Local policies and regulations can impact the price and availability of housing and, the provision of affordable housing. Land use controls, site improvement requirements, fees and exactions, permit processing procedures, among other issues may constrain the maintenance, development and improvement of housing. This section discusses potential governmental constraints in Escondido and efforts to address them.

Land Use Controls
The Land Use Element sets forth City policies for guiding local land use development. These policies, together with existing zoning regulations, establish the amount and distribution of land allocated for different uses. The City completed a comprehensive update to its General Plan in 2012. The General Plan update was focused around smart growth opportunities – adding new residential and employment capacity in areas well served by infrastructure and transit. The update also examined different land use policies and opportunities for growth, added a new high-density residential category, and removed development constraints. Most future residential growth will continue to be focused in the Downtown Specific Plan and south Centre City Parkway Specific Plan areas. The General Plan also calls for the update of the East Valley Specific Plan (“EVSP”) for the area immediately adjacent to the downtown. In mid-2020, the City initiated the preparation of the EVSP, which is anticipated to complete in Spring 2022 and provide approximately 6,000 units that were not previously allocated in the General Plan.

Residential Land Use Designations
The land use policies of the City have a direct impact upon the provision of housing for all economic sectors of the community. The General Plan designates substantial areas of land for residential development, and the Zoning code permits a wide variety of residential uses, ranging from multi - family housing to large estates. Table 39 lists the residential land use designations in the General Plan. Higher-density multi-family designations were assigned minimum densities during the General Plan update.

Resolution No. 2023-31
Exhibit "B"
60 of 291
337
Item18.

Table 39: Land Use Designations Permitting Residential Use Land Use
Category
Zoning
District
Max. Density
(du/acre) Character
Rural I R-A 1 unit/4, 8, 20
acres
To promote a rural living environment in areas of agricultural production, rugged terrain, and environmentally constrained lands that are remote from urban development.

Rural II R-A 1 unit/2, 4, 20
acres
To promote a rural living environment in areas of agricultural production or rugged terrain that is relatively remote from urban development.

Estate I R-E 1 unit/1, 2, 4, 20
acre
To promote a large lot, single-family development in areas bordering Rural lands. This classification is typified by development along Mary Lane, North Broadway and around Felicita Park.

Estate II R-E Up to 2.0
To promote single-family urban development on relatively large lots. This classification typified by development at Lomas Serenas, Rancho Verde, and along Citrus Avenue around San Pasqual Valley Road.

Suburban R-1 Up to 3.3
This residential classification is characterized by single -family homes.

The density is appropriate where the traditional neighborhood character of detached single -family units prevails. This classification is typified by development at Summercreek and areas southeast of Bear Valley Parkway along Citrus Avenue and along the south side of Avenida del Diablo.

Urban I R-1 Up to 5.5
Detached single -family homes, characteristic of much of Escondido, constitute this medium density category. Typical R- 1 development is found along Country Club Lane and between Ash and Citrus north of Washington.

Urban II R-2 Up to 12
This residential classification allows living accommodations, ranging from conventional single-family units to mobile homes. Development at this level of intensity normally would be semidetached or attached units, and include duplexes, triplexes, and fourplexes. Typical Urban II development is found on North Broadway between Lincoln and Sheridan Avenues, and Citrus Avenue between Valley Parkway and the Flood Control Channel.

Urban III R-3 Up to 18
This residential category is typified by low -rise townhouses and apartment buildings. Typical projects at this density can be found near Centre City Parkway at El Norte, east Grand Avenue, and near Washington and Fig.

Urban IV R-4 Up to 24
This residential category is predominantly characterized by apartment buildings about three stories in height. Representative development at this density is found south of 9th Avenue west of I15.

Urban V R-5 Up to 30 This residential category is characterized by high -density, multi -family developments.

Source: Land Use Element, City of Escondido General Plan Resolution No. 2023-31
Exhibit "B"
61 of 291
338
Item18.

Specific Plans
The City of Escondido has adopted a number of specific plans, which offer a range of housing types, densities, and mix of uses. The City anticipates that much of its new residential growth will occur in the following areas:
• Downtown Specific Plan (Revised February 10, 2021)
• South Centre City Area Plan (April 4, 2018)
• East Valley Specific Plan (Revised September 22, 2004, and 2021)

Downtown Area Specific Plan
The Downtown Specific Plan area encompasses approximately 460 acres extending from I-15 and West Valley Parkway to Palomar Hospital, between Washington and Fifth Avenues. The Specific Plan Area includes the City’s urban core along Grand Avenue where Escondido was incorporated in 1888.

The Downtown Specific Plan provides a comprehensive plan for land use, development regulations, development incentives, design guidelines and other related actions aimed at implementing the following strategic goals for Downtown Escondido:
• An economically viable Downtown with an appropriate mix of retail, office, residential, entertainment and cultural uses.
• A local and regional destination for specialty shopping, dining, nightlife, employment, culture, and the arts.
• A vibrant and exciting environment with land uses that foster an “18-hour” atmosphere, in addition to areas that provide mixed-use, office employment and high-density residential opportunities.
• Development and signage that strengthen the character of Downtown and are architecturally compatible with the existing urban fabric.
• Street-level and human-scale design elements in new and remodeled developments that improve pedestrian orientation.
• Preserved historically significant sites and structures that enhance the character of Downtown.
• Pedestrian-oriented, ground-floor, specialty retail and restaurant uses on Grand Avenue that reinforce and expand its unique character.
• Higher residential densities in key locations that support Downtown non-residential uses. A pedestrian environment that provides connections, convenient access and opportunities for alternative modes of transportation.
• Embellished landscaping, public art, comfortable street furniture and décor that improves walkability and pedestrian connections.
• Maximized parking opportunities.

The Downtown Specific Plan includes seven distinct land use districts that allow for residential development or mixed-use development with substantial residential components:
• Historic Downtown District (HD)
• Park View District (PV)
Resolution No. 2023-31
Exhibit "B"
62 of 291
339
Item18.
• Centre City Urban District (CCU)
• Gateway Transit District (GT)
• Mercado District (M)
• Southern Gateway District (SG)
• Creekside Neighborhood District (CN)
Figure 6: Downtown Escondido Specific Plan – Residential Densities

Residential development above 45 units per acre can be accommodated in most of the Downtown Specific Plan area, with a substantial area allowing up to 75 units per acre and 100 units per acre.

There are some areas where residential is not allowed and others where a ground-floor commercial or office component is required.

In 2019, the City adopted a “Downtown Density Transfer Program,” which allows for the transfer of residential density from underutilized properties to properties that are being redeveloped. This program allows property owners to re-assign or transfer units to other properties via a city - administered density credit pool. The City holds the density credits until a redeveloping property acquires the density. In effect, the density transfer program prevents the loss of potential units when a property is redeveloped in support of achieving a full-build out in the Downtown area. Two entitled projects are utilizing the density transfer program. The project (ADM 20-0085) noted in Table A-3 is also contemplating the use of this program. There have also been requests to expand this program to other parts of the City.

The Downtown Specific Plan also establishes development standards that differ from the rest of the City. Table 40 summarizes the standards specific to the City’s downtown area.

Resolution No. 2023-31
Exhibit "B"
63 of 291
340
Item18.

Table 40: Downtown Specific Plan Residential Development Standards District
Maximum
Building
Height (ft.)
Setbacks (ft.)
Min. Lot
Size
Max.

Building
Coverage
Allows
Mixed-
use? Front Side
Street
Side
Yard
Rear
Yard
HD 45-120

0 0
0 None None Y
PV 35-85 10
0 CCU 75 10 5
GT 60-75 0
0 M 60-75 0
SG 35-75 0
CN 75 10 5 10

South Centre City Specific Plan
The South Centre City Specific Plan was adopted in 2018 to implement policy direction from the 2012 General Plan update that focused on implementing smart growth goals into four target growth areas.

The plan contains eight districts, each with different development regulations and standards.

For residential land use, the plan seeks to maximize affordable housing opportunities and provide opportunities for a balanced mix of housing types through a variety of incentives and programs. The Plan provides for a Mixed-Use (MU) designation that permits the integration of residential, commercial, and professional office uses in a single project.

The plan allows for high-density residential of up to 24 units per acre in the 9th Avenue Overlay, and up to 30 dwelling units per acre in the Escondido Boulevard Mixed- Use Overlay and the Southern Entry Mixed-Use Overlay zones.

East Valley Specific Plan
The East Valley Specific Plan (“EVSP”) covers areas along East Valley Parkway. The existing land use pattern reflects prior decisions and uses along East Valley Boulevard are almost exclusively commercial in nature; there is no existing housing within the commercial area. The 2012 General Plan Update calls for the amendment of the area plan to re-assess the land use plan, in particular to introduce high-density housing to the area. The EVSP is expected to be adopted concurrent with the Housing Element. Table 41 provides a summary of the land use designations in the proposed EVSP.

Resolution No. 2023-31
Exhibit "B"
64 of 291
341
Item18.

Table 41: East Valley Specific Plan Land Use Designations Land Use Applicable
Zoning Description
Min.

Density/
FAR
Max.

Density/
FAR
Target
Production
Point
Appr. Yield
Urban IV/V R-5-30
Assumes 24 du/ac. Multi-family residential
units, townhomes, apartments, flats, and
condominiums. 15,000 sf/ac retail and
office uses are permitted
21 du/ac 30 du/ac 25 du/ac
1,495 units
453,789 sf of
commercial
General
Commercial C-G
Local-serving commercial, automobile
service, eating/drinking establishments,
entertainment facilities, retail, office,
service establishments, etc. Intended for
other commercial uses not suitable for
residential zones.

0.25 FAR 1.0 FAR 0.5 FAR
0 units
59,014 sf of
commercial
Mixed-Use M-U
Vertical or horizontal mixed-use. Multi-
family residential units, appropriate along
major thoroughfares, proximate to
shopping centers, entertainment,
community facilities and employment
opportunities.
20 du/ac

1.5 FAR
80 du/ac

3.0 FAR 45 du/ac
4,669 units
703,338 sf of
commercial
Park Overlay
Zone POZ
Active and passive parks as well as land to
protect, maintain, and enhance the
community’s natural resources and include
detention basins and creek corridors.

Development Impact Fees contribute to
park space in these areas.
--- --- ---
10 acres
minimum of
parkland and
open space
Growth Management Controls
The City has two growth management measures that impact the pace and capacity of residential growth:
• Ordinance 94-16
• Proposition S
Ordinance 94-16
This ordinance is a Citywide Facilities Management Plan that came into effect on May 18, 1994 and replaced all prior growth management ordinances. While facilities are generally available citywide, the North Broadway Region of Influence has had critical infrastructure deficiencies with respect to drainage and water storage capacity. The region is located in the northeast part of Escondido. Should adequate facilities not be available within the region, the ordinance allows development of projects subject to the approval of a development agreement. The agreement must ensure that the project either provides facilities necessary to upgrade existing deficiencies or financially participates toward their solution.

The North Broadway Deficiency Area is identified by the Citywide Facilities Plan as having critical infrastructure deficiencies. New land use development projects need to either provide facilities necessary to upgrade the deficiencies or cumulatively (i.e. financially) participate towards their solution. Ordinance 94- 16 helps new land use development projects address off-site cumulative CEQA issues as part of the entitlement process, which helps expedite CEQA review and streamline housing projects. The developer contribution of a $12,500 per unit helps new projects participate in the costs of drainage and water storage requirements. Over the decade or so, there have been three Resolution No. 2023-31
Exhibit "B"
65 of 291
342
Item18.
large projects that have been constructed within this area, including 179 homes in Hidden Valley Ranch, 70 in Pradera, and 40 in Zenner (189 total homes). This demonstrates that the Ordinance 94- 16 fee is not a constraint to housing development.

A subsequent ordinance (95-11) also allows development of a single-family residence on an existing vacant lot of record, zoned for residential use, where the lot was created prior to June 6, 1990, within the Region of Influence. A supplemental deposit is required at the time of Building Permit issuance to ensure facility impacts are addressed.

Proposition S
Proposition S was adopted by voters 1998 and requires voter approval of specified future changes to the Escondido General Plan. General Plan changes, subject to Proposition S, include increasing residential densities, changing or increasing the residential land use categories, or changing any residential designation to a commercial or industrial designation on any property designated as Rural, Estate, Suburban, or Urban. Thus, voter approval is required for amendments that would increase residential densities, but also deters the loss of residential land when associated with an amendment to commercial or industrial. Furthermore, Proposition S states, “Nothing in this initiative shall be constructed to:
• Interfere with rights to obtain density bonuses or other entitlements available under affordable housing laws, or Proposition S
• Limit right or entitlements available under affordable housing laws.” Prop S applies to the intensification of land uses in residential areas of the City. Specifically, under Policy E 2.3: “Permitted land uses in the residential areas of the City shall be intensified only when the voters approve such changes.”
The intent of Prop S is to focus on current residential zones, rather than rezones from nonresidential to residential. A rezone from a non -residential zone to a residential zone does not trigger Prop S.

Therefore, Prop S does not act as a cap on the number of housing units constructed or permits that can be approved either annually or for some other time period. It also does not limit the population of the City.

The City may amend the existing EVSP without a vote of the public and can therefore accommodate additional units within the East Valley Area for the 2021-2029 RHNA planning period. Outside of the East Valley Area, this Housing Element examines the residential development capacity under the existing General Plan, zoning, and specific plans, and has demonstrated adequate capacity to accommodate the City’s RHNA for the sixth cycle Housing Element planning period.

The City recognizes that Proposition S may serve to constrain housing development in the long term, beyond 2028. Therefore, the City initiated a comprehensive General Plan update in 2008 to address land use distribution, preservation of neighborhoods, and identification of appropriate growth centers within the community. The updated General Plan was approved by the City Council on May 23, 2012.

Portions of the updated General Plan were placed on the November 2012 ballot and approved by Escondido residents.

The General Plan update preserved most existing land use policies in much of the City’s residential neighborhoods, but did provide opportunities for employment and residential intensification. The maximum allowed density of a mixed-use development along South Escondido Boulevard was increased from 24 to 30 units per acre, which resulted in increased capacity in the City.

Resolution No. 2023-31
Exhibit "B"
66 of 291
343
Item18.

The approval of the General Plan update by the voters increased the City’s capacity for residential growth over the long term. Recognizing Proposition S as a potential constraint, the Housing Element includes a program to monitor the impact of this growth management measure.

Overlay Zones and Other Districts
Mixed-use Overlay Zone
As part of the 2012 General Plan update, new areas for mixed-use development were designated in areas with high potential for commercial and residential development.

Flood Plain Overlay Zone
The Flood Plain (FP) overlay zone establishes land use regulations in areas with properties situated within designated flood plains of rivers, creeks, streams and water courses in order to protect the public health, safety and welfare and to minimize losses to property and life due to flooding and periodic inundation. The City restricts or prohibits uses in this zone which are dangerous to health, safety or property in times of flood or cause excessive increases in flood heights or velocities. The City also requires uses vulnerable to floods to be protected against flood damage at the time of initial construction.

Planned Development (P-D) Zone
The purpose of the Planned Development (P-D) zone is to provide a more flexible regulatory procedure by which the basic public purposes of the Escondido general plan and the Escondido zoning code may be accomplished. The P-D zone serves to encourage creative approaches to the use of land through variation in the siting of buildings and the appropriate mixing of several land uses, activities and dwelling types.

For planned developments in which residential uses are proposed on parcels of land in the R-3, R-4, and R-5 zones, area plans, and in specific plan areas with a maximum specified multifamily residential density, no planned development will be approved at a density below 70% of the maximum permitted density of the underlying multifamily zone, area plan or specific plan multi-family designation. Residential planned developments in this zone are also encouraged to depart from standard subdivision and housing design by providing a variety of lot sizes and housing types, provided that the overall residential density yield conforms with the City’s policies.

Old Escondido Neighborhood Historic District
The boundaries of this District are Fifth Avenue on the north, Chestnut Street on the east, Thirteenth Avenue on the south and South Escondido Boulevard on the west (excluding properties fronting on Escondido Boulevard) and including north side of Fifth Avenue from Juniper to Date. The purpose and intent of the Old Escondido Neighborhood historic district is to preserve the single -family residential character of the neighborhood and the historic/cultural resources of the neighborhood as well as emphasize orientation towards pedestrian activities. The historic nature of this district precludes the properties on it for higher density residential re-use.

Resolution No. 2023-31
Exhibit "B"
67 of 291
344
Item18.

Density Bonus and Residential Incentive Ordinance
Government Code section 65915 et. seq. requires an agency to provide developers with a density bonus and other incentives or concessions for the production of lower income housing units or for the donation of land within the development if the developer agrees to construct a specified percentage of units for very low, low, and/or moderate income households or qualifying residents. Density bonus is a California state requirement and as such not subject to the discretion of local governance bodies – land use development requests that meet the law's requirements are entitled to the Density Bonus, as of right.

The City adopted its Density Bonus and Residential Incentive Ordinance in the 1990s. In 2018, the California Legislature approved four bills that expanded the density bonus to a wider range of housing projects and strengthened procedures to make the density bonus more workable for developers. The current ordinance (Chapter 33, Article 67) , last updated May 2020, allows a minimum density bonus and deviations from the Zoning Code for affordable or senior housing in accordance with the State Density Bonus Law (California Government Code Sections 65915 – 65918) and reflects the State Legislature’s commitment to incentivizing housing development in California.

Since parking and setbacks can be reduced, a developer could feasibly increase the number of units or bedrooms without increasing the size of the site. The City’s Density Bonus and Residential Incentive Ordinance is useful in the acquisition and rehabilitation of developments made affordable to low income residents in the higher multi-family zones. For example, the ordinance was utilized to increase the number of bedrooms in the acquisition and rehabilitation of the 15th Avenue Cooperative and Sonoma Court, affordable housing projects. Furthermore, the South Centre City Specific Plan has an added provision to allow three or more units to be a qualifying project under Density Bonus Law.

Current State law requires jurisdictions to provide density bonuses and development incentives to all developers who propose to construct affordable housing on a sliding scale, where the amount of density bonus and number of incentives vary according to the amount of affordable housing units provided. Specifically, State law requires the provision of certain incentives for residential development projects that set aside a certain portion of total units to be affordable to lower and moderate income households. Under State law, a development of more than five units is eligible to receive density bonuses if it meets at least one of the following:
• At least 5% of the housing units are restricted to very low income residents. • At least 10% of the housing units are restricted to lower income residents. • At least 10% of the housing units in a for-sale common interest development are restricted to moderate income residents.
• 100% of the housing units (other than manager’s units) are restricted to very low, lower and moderate income residents (with a maximum of 20% moderate). • At least 10% of the housing units are for transitional foster youth, disabled veterans or homeless persons, with rents restricted at the very low income level. • At least 20% of the housing units are for low income college students in housing dedicated for full-time students at accredited colleges.
• The project donates at least one acre of land to the city or county for very low income units, and the land has the appropriate general plan designation, zoning, permits and approvals, and access to public facilities needed for such housing. • The project is a senior citizen housing development (no affordable units required).

Resolution No. 2023-31
Exhibit "B"
68 of 291
345
Item18.
• The project is a mobile home park age-restricted to senior citizens (no affordable units required).

AB 2345 was passed in September 2020, amending the Density Bonus Law to increase the maximum density bonus from 35% to 50%. To be eligible for the maximum bonus, a project must set aside at least (i) 15 % of total units for very low income households, (ii) 24% of total units for low income households, or (iii) 44% of for-sale units for moderate income households. Levels of bonus density between 35% and 50% are granted on a sliding scale. Cities must update their density bonus ordinances to codify these new bonus requirements. This Housing Element includes a program to update the City’s Density Bonus provisions to be consistent with the most recent changes in State Density Bonus Law.

The Density Bonus and Residential Incentives Ordinance enc ourages development of housing for lower income and senior households. Other processes in the Zoning Ordinance help in the development of housing for the higher income households as well as the lower income households.

Escondido has an income distribution that skews toward the lower income compared to the region.

As a means to diversify the City’s socioeconomic profile, the City retains certain amount of large-lot zoning to accommodate the housing needs and preferences of moderate and higher income households. This strategy is aimed at satisfying high-tech businesses desiring to locate in Escondido.

Planned Developments, Specific Plans and Administrative Adjustments are also available to assist in the development and rehabilitation of housing for all economic sectors of the community.

These processes are particularly helpful where properties may be constrained. Specific Plans and Planned Developments allow for clustering of smaller lots into buildable areas, while preserv ing unique or environmentally sensitive areas such as ridgelines, stream courses and steep slopes.

Planned Developments and Specific Plans are useful for large scale developments, while administrative adjustments are more useful on a small scale basis where deviations from the code may enable the development on a constrained site or an addition to an existing single-family home or apartment complex.

Residential Development Standards
Citywide, outside the specific plan areas, the City regulates the type, location, density, and scale of residential development primarily through the Zoning Code. The following summarizes the City’s existing residential zoning districts:
• Residential Agricultural (R -A) – 1 unit per 5 to 10 acres: This zone is designed to protect agricultural uses from encroachment by urban uses until residential, commercial or industrial uses in such areas become necessary or desired. The densities in this zone are based on the minimum lot sizes of 5 to 10 acres.
• Residential Estates (R-E) – 0.2 to 2 units per acre: This zone is to provide an area exclusively for single-family dwellings in a rural setting. Provisions are made for the maintenance of limited agricultural pursuits as well as those uses necessary and incidental to single family living. The densities in this zone are based on the minimum lot sizes of 20,000 square feet to 210,000 square feet.
• Single-Family Residential (R-1) – 1.74 to 7.26 units per acre: This zone is to encourage and promote a suitable environment for family life by providing a district for the establishment of one-family, detached dwellings, exclusively. The densities in this zone are based on the minimum lot sizes of 6,000 square feet to 25,000 square feet.

Resolution No. 2023-31
Exhibit "B"
69 of 291
346
Item18.
• Mobile Home Residential (R-T): This zone is established to encourage and promote a suitable environment for family life by providing a district for one-family detached mobile homes. • Light Multiple Residential (R -2) – 12 units per acre: This zone is established to provide low height, low density residential areas in close proximity to single-family residential neighborhoods.
• Medium Multiple Residential (R-3) – 18 units per acre: This zone, is established to provide medium density, low-height residential areas for two, three and multifamily dwelling units. • Heavy Multiple Residential (R-4) – 24 units per acre: This zone is established to provide an area for a suitable environment for family life for those wishing to live in apartments near the city’s center.
• Very High Multi -Family Residential (R-5) - 30 units per acre: Thi s zone is established to provide a multi-family setting for family life in higher-height, very high-density dwelling units in close proximity to other multi-family neighborhoods and near the city’s center.

Development standards specific to each zone district are designed to protect and promote the health, safety, and general welfare of residents as well as implement the policies of the General Plan. These standards also serve to preserve the character and integrity of existing neighborhoods. Specific residential development standards are summarized in Table 42.

Generally, development standards can limit the number of units that may be constructed on a particular piece of property. These include density, minimum lot and unit sizes, height, and open space requirements. Limiting the number of units that can be constructed will increase the per -unit land costs and can, all other factors being equal, result in higher development costs that may impact housing affordability.

Table 42: Residential Development Standards
Zoning
District
Maximum
Building
Height
(ft.)
Minimum
Net Lot
Area
(sq. ft.)
Minimum
Lot Width
(ft.)
Setbacks (ft.) Maximum
Lot
Coverage
Floor
Area
Ratio Front Rear Side
R-A 35 217,800 150 25 20 10 20% 0.3
R-E 35 20,000 100 25 20 10 30% 0.4
R-1 35 6,000 60 15 20 5 40% 0.5
R-T -- 4,500 55 15 5 5 60% --
R-2 25 6,000 60 15 15 5 -- 0.6
R-3 35 6,000 60 15 10 5 -- 0.7
R-4 75 6,000 50 15 10 5 -- 0.8
R-5 75 6,000 50 15 10 5 -- 0.9
Source: City of Escondido Zoning Ordinance, 2020.

Setback Requirements
Setback requirements can encourage or discourage development. As seen on Table 42, the City's residential setback requirements are minimal. The City also offers adjustments to requirements (up to 25%) with the approval of the Community Development director. Even further reductions to setback requirements for landscaping and parking are available to affordable or senior housing proposals, pursuant to the Residential Incentive Ordinance.

Resolution No. 2023-31
Exhibit "B"
70 of 291
347
Item18.

Building and Parcel Requirements
Building and parcel requirements for residential development can also encourage or discourage development. While development standards are necessary in order to preserve the character of that particular zone, those that are too restrictive can increase development costs and inhibit or reduce the achievable number of permitted dwelling units.

Building and parcel requirements in the City are not overly restrictive and offer the flexibility needed to encourage development. Minimum parcel sizes vary, depending on the zone, and are minimal in the multi-family zones. Minimum unit sizes are closely tied to the minimum standards required by the State for health and safety purposes. Lot coverage and floor area ratios are high enough to have little or no constraint on development proposals. And usable open space requirements are low and can be lowered further for affordable and senior housing development proposals. Building and parcel requirements in the Downtown and South Centre City Parkway areas are even less restrictive than those of the single-family and multi-family zones.

Zone Changes and General Plan Amendments
Residential zone changes that propose density increases consistent with the General Plan do not require an initiative or a referendum. Pursuant to proposition S, General Plan amendments involving an increase in residential densities or change from residential to commercial or industrial require a majority vote by the people.

Proposition S specifies that General Plan amendments or specific plans cannot be adjusted without a vote of the people, if changes increase residential density, alter or increase the General Plan's residential land use categories, or change any Rural, Estate, Suburban or Urban residential designation to a commercial or industrial designation. Thus, voter approval is required for amendments that would increase residential densities, but also deters the loss of residential land when associated with an amendment to commercial or industrial.

The General Plan update was approved by the City Council on May 23, 2012 and portions involved voter approval decided at the November 2012 election; Escondido residents approved the changes to the General Plan. The updated General Plan provides for increased residential development capacity through mixed -use development, primarily along South Escondido Boulevard. Most other residential areas retain their current General Plan and zoning designations. Furthermore, Proposition S states, “Nothing in this initiative shall be construed to:
• Interfere with rights to obtain density bonuses or other entitlements available under affordable housing laws, or
• Limit right or entitlements available under affordable housing laws.” Additionally, few residential subdivisions have been denied, and current zoning allows multi -family development by right with ministerial processing only.

Parking Standards
High numbers of parking spaces required per dwelling unit can negatively impact the feasibility of providing affordable housing by reducing the achievable number of dwelling units per acre and increasing development costs. The cost and amount of required parking has a high impact on the cost of housing. Typically, the concern for high parking standards relates mostly to multi -family, affordable, or senior housing. Escondido’s requirements for single-family and multi-family residential Resolution No. 2023-31
Exhibit "B"
71 of 291
348
Item18.
are summarized in Table 43. In some instances, tandem spaces are permitted and in others, guest parking may be provided on-street.

Table 43: Escondido Residential Parking Requirements
Type of Residential
Development Required Parking Spaces Per Unit
Single-Family or
Two-Family Residence Two (2) car garage or carport spaces Accessory Dwelling Unit Zero (0) parking spaces
Multiple-Family Dwelling*
Efficiency Unit One (1) parking space
One-Bedroom Unit One and one-half (1.5) parking space
Two-Bedroom Unit One and three-quarter (1.75) parking space Three or More Bedrooms Two (2) parking spaces
Senior housing Two (2) plus three (3) for every four (4) efficiency units or one bedroom units. Units with two (2) or more bedrooms require one and one-half (1.5) spaces per unit.

Source: City of Escondido Zoning Ordinance, 2020
* One space is required for each four (4) units required for guest parking

Escondido’s Density Bonus and Residential Incentive Ordinance allows parking reductions for affordable and senior development at the following ratios: one space/one-bedroom unit; 1.2 spaces/two-bedroom unit, and 1.5 spaces/three-bedroom unit. These standards are lower than even the State-mandated parking standards for density bonus projects. Additionally, on-street resident parking for affordable or senior units can be substituted for required off-street parking at a ratio of one-to-one on non-Circulation Element streets. Requirements to cover spaces can also be waived.

Provision for a Variety of Housing Opportunities
Housing element law specifies that jurisdictions must identify adequate sites to be made available through appropriate zoning and development standards to encourage the development of a variety of housing types for all economic segments of the population. This includes single- family homes, multi-family housing, second units, mobile homes, emergency shelters, and housing for persons with disabilities. Table 44 below summarizes the various housing types permitted within the City’s zoning districts.

Resolution No. 2023-31
Exhibit "B"
72 of 291
349
Item18.

Table 44: Use Regulations for Residential Zones
Use R-A R-E R-1 R-T R-2 R-3 R-4 H-P C-G Mixed-use
Overlay
Single-Family Dwelling P P P -- P P P -- -- --
Accessory Dwelling Unit P P P -- P P P -- -- --
Multi-Family Dwelling -- -- -- -- P P P -- -- P
Mobile Home Park C C C C C C C -- -- --
Manufactured Housing P P P P -- -- -- -- -- --
Care Facility (6 or fewer) P P P P P P P C C P
Care Facility (7 or more) C C C -- C C C C C P
Senior Housing P P P P P P P -- -- P
Transitional (6 or fewer) P P P P P P P P/C P/C P
Transitional (7 or more) C C C C C C C P/C P/C P
Disabled (6 or fewer) P P P P P P P -- -- P
Disabled (7 or more) C C C C C C C -- -- P
Single Room Occupancy -- -- -- -- -- -- -- -- -- C
Farm Worker Housing P P -- -- -- -- -- -- -- --
P = Permitted Use
C = Conditional Use
Source: City of Escondido Zoning Code, 2020

Single-Family Dwelling
“Single-family dwellings” are defined in the Zoning Code as detached or semi -detached buildings.

Single-family dwellings are permitted in all residential zones, except the R -T zone. As part of the General Plan update, the City established a 70% minimum density for R -3, R-4, and R -5 zoning districts, effectively discouraging single-family homes to be developed on properties designated for multi-family uses. This change promotes the efficient use of the City’s residential land and mitigates neighborhood compatibility issues.

Accessory Dwelling Units
Accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”) are attached or detached dwelling units that provide complete independent living facilities for one or more persons including permanent provisions for living, sleeping, cooking and sanitation. ADUs may be an alternative source of affordable housing for lower-income households and seniors. Recent state laws, including AB 68, AB 587, AB 670, AB 881, AB 671 and SB 13 in 2019 and AB 3182 in 2020, require cities to use a ministerial process to consider accessory dwelling units in an effort to facilitate the production of affordable housing state-wide. Accessory units must be permitted in all residential and mixed-use zones where a residential unit already exists.

Recent ordinances by the City of Escondido have updated the zoning provisions related to ADUs and JADUs. In 2020, and subsequently in 2021, the City amended the Zoning Code to comply with AB 68, AB 587, AB 670, AB 671, AB 881, AB 3182 and SB 13 to reflect changes to Government Code section 65852.2 and section 65852.22. The City of Escondido permits ADUs and JADUs in area zoned to allow single-family or multi-family residential use, subject to the approval of an ADU permit. ADUs must Resolution No. 2023-31
Exhibit "B"
73 of 291
350
Item18.
also comply with the development standards of the underlying zone, except where precluded by state law. Other requirements for accessory dwelling units include:
• The owner of the property must reside on the parcel on which a JADU is located. • No limit on the number of bedrooms is allowed.
• A setback requirement of not more than four feet for detached accessory dwelling units. • Any development standards that regulate the size of the ADU must permit at least an 850 square foot ADU to be constructed.
• The accessory unit shall respect the residential scale and design character of existing homes.

Additionally, the zoning code has a provision that states that the section “shall be interpreted liberally in favor of accessory dwelling unit construction,” which further removes constraints on ADU production in case of ambiguities in the standards. The City does not require any parking for ADUs or JADUs. Copies of Ordinance No. 2020-31R and 2021-10 were transmitted to HCD in accordance with Government Code 65852.2(h)(1).

Multi-Family Dwelling
According to the State Department of Finance, multiple-family housing makes up approximately 36% of the 2020 housing stock in Escondido (Table 26). The Zoning Code provides for multi -family developments in the higher density residential zones (R -2, R-3, and R-4, R-5) and in specific plans.

The maximum density for the R-5 zone is 30 units per acre.

Mobile Home Parks and Manufactured Housing
Manufactured housing and mobile homes can be an affordable housing option for low and moderate income households. Mobile homes represent about eight percent of the City’s housing stock as of January 2020. A mobile home built after June 15, 1976, certified under the National Manufactured Home Construction and Safety Act of 1974, and built on a permanent foundation may be located in any residential zone where a conventional single-family detached dwelling is permitted subject to the same restrictions on density and to the same property development regulations. Manufactured/ mobile homes are permitted in all of the City’s lower density residential zones (R-A, R-E, R-1 and R- T). In today’s construction methods, manufactured housing can also apply to multi -family housing construction. The Zoning Code will be amended to permit manufactured homes meeting the California Building Code standards to be permitted where residential uses are permitted.

Residential Care Facilities
Residential care facilities licensed or supervised by a Federal, State, or local health/welfare agency provide 24-hour non-medical care of unrelated persons who are handicapped and in need of personal services, supervision, or assistance essential for sustaining the activities of daily living or for the protection of the individual in a family-like environment. The Community Care Facilities Act (California Health and Safety Code) and Lanterman Developmental Disabilities Services Act (California Welfare and Institution Code) require that State-licensed residential care facilities serving six or fewer persons (including foster care) be treated as a regular residential use and therefore must be permitted by right in all residential zones allowing residential uses. These facilities cannot be subject to more stringent development standards, fees, or other standards than the same type of housing single-family homes in the same district.

Resolution No. 2023-31
Exhibit "B"
74 of 291
351
Item18.

The City amended its Zoning Code, in accordance with the Lanterman Developmental Disabilities Services Act of the California Welfare and Institutions Code and the Health and Safety Code in 2004.

The amendment clarifies that the use of property for the care of six or fewer disabled persons is a “residential use” for the purposes of zoning. A State-authorized, certified or authorized family care home, foster home, or group home serving six or fewer disabled persons or dependent and neglected children on a 24-hour -a day basis is considered a residential use that is permitted in all residential zones. The amendment also clarifies that in Commercial and Hospital Professional zones, licensed residential care facilities serving any number of residents are permitted by right, and in residential zones (except the R -T zone), licensed residential care facilities serving more than six persons are permitted with a Conditional Use Permit. The CUP process may be considered a constraint to housing for persons with disabilities.

Emergency Shelters
Senate Bill 2, enacted in October 2007, requires local governments to identify one or more zoning categories that allow emergency shelters (year-round shelters for the homeless) without discretionary review. The statute permits the City to apply limited conditions to the approval of ministerial permits for emergency shelters. The identified zone must have sufficient capacity to accommodate at least one year -round shelter and accommodate the City’s share of the regional unsheltered homeless population. The San Diego Regional Task Force on the Homeless “We All Count 2020” found that Escondido’s homeless population is estimated to be 429 individuals , 264 of those individuals are unsheltered.

In 2013, the City amended its zoning code to add an Emergency Shelter Overlay Zone subject to the following standards:
• Each shelter shall be located within an entirely enclosed, permanent structure. • Each shelter may have a maximum 50 beds to serve a maximum of 50 clients. • The maximum length of stay at any one time for any person shall be six months in any 12- month period.
• Parking shall be two spaces per facility plus one space for each employee. • There shall be no camping or sleeping in vehicles on site. • An emergency shelter shall be located at least 300 feet from another shelter. • Each shelter shall conform to the requirements of the Outdoor Lighting Ordinance. • The emergency shelter operator shall submit a written management plan.

The zone allows for year -round emergency shelters and can accommodate the City’s unsheltered homeless population. Emergency shelters are allowed without discretionary approval in the overlay zone. The zone is approximately 69 acres and encompasses 64 parcels zoned for M-1 and M-2 (light industrial), which are currently occupied by mostly light industrial, commercial, and warehousing uses.

Some buildings in the area are antiquated, with deferred maintenance issues, and were developed below the allowable intensity. Therefore, development of emergency shelters in this area can occur either as new construction on one of the underutilized properties, or as adaptive reuse of an existing vacant building (or just a portion of the building). The overlay zone is appropriate for emergency shelters since it contains underutilized properties and is located near the Nordahl Road transit station and the new Palomar Hospital.

In 2020, the City amended the Zoning Code to comply with AB 139, which sets parking standards based primarily on staffing level only. Ordinance 2020-31R amended the Zoning Code to require two spaces per facility plus one space for each employee. This standard is slightly inconsistent with AB Resolution No. 2023-31
Exhibit "B"
75 of 291
352
Item18.
139. Furthermore, the City will amend the Zoning Code to revise the separation requirement to a maximum of 300 feet pursuant to SB 2 (2007).

Transitional and Supportive Housing
California Health and Safety Code (Section 50675.2) defines “transitional housing” and “transitional housing development” as buildings configured as rental housing developments, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months.

Residents of transitional housing are usually connected to supportive services designed to assist the homeless in achieving greater economic independence and a permanent, stable living situation.

Transitional housing can take several forms, including group quarters with beds, single-family homes, and multi-family apartments and typically offers case management and support services to help return people to independent living (often six months to two years).

Supportive housing links the provision of housing and social services for the homeless, people with disabilities, and a variety of other special needs populations. California Health and Safety Code (Section 50675.2) defines “supportive housing” as housing with no limit on length of stay, that is occupied by low income adults with disabilities, and that is linked to on- site or off-site services that assist the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. Target population includes adults with low incomes having one or more disabilities, including mental illness, HIV or AIDS, substance abuse, or other chronic health conditions, or individuals eligible for services provided under the Lanterman Developmental Disabilities Services Act (Division 4.5, commencing with Section 4500, of the Welfare and Institutions Code) and may, among other populations, include families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, or homeless people.

Escondido’s Zoning Code makes provisions for transitional and permanent supportive housing.

Transitional and supportive housing that is operated as regular housing developments (i.e. no state care license) is permitted by -right in all residential zones, regardless of size or on -site services.

Transitional and supportive housing that is operated as group quarters with six or fewer persons is permitted by right in all residential zones. Transitional and supportive housing that is operated as a group quarters with seven or more persons is conditionally allowed in all residential zones except the R-T zone (Mobile Home Park Zone). Potential conditions for approval of large residential care facilities (for more than six persons) as transitional/supportive housing may include hours of operation, security, loading requirements, noise regulations, and restrictions on loitering. Conditions would be similar to those for other similar uses and would not serve to constrain the development of such facilities. SB 745 (2014) specifies that transitional housing and supportive housing should be considered a residential use of property, and subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. This would extend residential uses as permitted in mixed -use and nonresidential zones. Pursuant to AB 2162 (2018), supportive housing meeting certain criteria must be permitted by right where residential uses are permitted, including mixed-use and nonresidential zones. Escondido’s Zoning Code does not permit mixed -use development outside of specific plan areas; these plans do not explicitly identify transitional and supportive housing as separate from residential uses. The City will review SB 745 and AB 2162 and ensure compliance.

Resolution No. 2023-31
Exhibit "B"
76 of 291
353
Item18.

Senior Housing
The Zoning Code permits senior housing (for persons aged 55 or over) as regular housing across the City. Senior Housing is allowed by right in all residential zones.

Single Room Occupancy Units (SROs)
Single Room Occupancy (“ SRO”) units are one-room units intended for occupancy by a single individual. They are distinct from a studio or efficiency unit, in that a studio is a one -room unit that must contain a kitchen and bathroom. Although SRO units are not required to have a kitchen or bathroom, many SROs have one or the other and could be equivalent to an efficiency unit. The zoning code officially classifies SROs as “a living or efficiency unit, as defined by California Health and Safety Code section 17958.1, intended or designed to be used as a primary residence for a period of more than thirty (30) consecutive days .” The City adopted a hotel conversion ordinance in 2021 which permits for SRO development through a hotel conversion permit and accompanying CUP, if required, such as in some districts of the South Centre City Specific Plan.

Farm Worker Housing
Pursuant to the State Employee Housing Act (Section 17000 of the Health and Safety Code), employee housing for agricultural workers consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single-family or household is permitted by right in an agricultural land use designation. For properties that permit agricultural uses by right, a local jurisdiction may not treat employee housing that meets the above criteria any differently than an agricultural use. Furthermore, any employee housing providing accommodations for six or fewer employees shall be deemed a single-family structure within a residential land use designation, according to the Employee Housing Act. Employee housing for six or fewer persons is permitted wherever a single-family residence is permitted. To comply with State law no conditional use permit or variance is required.

The City’s Zoning Code allows, as a permitted use in open space (O -S), agricultural and estate residential zones (R-A and R-E), living quarters for persons employed on the premises in conjunction with authorized agricultural uses. The City will review the Zoning Code to ensure compliance with the Employee Housing Act.

Low Barrier Navigation Centers
Low Barrier Navigation Centers (“LBNC”s) are service-enriched shelters that are focused on moving individuals into more permanent housing. Low Barrier Navigation Centers provide temporary housing while case managers connect individuals experiencing homelessness to shelter, public benefits, and health services. Under the Housing for Homeless Act (2019), local governments are required to allow Low Barrier Navigation Centers by right in areas zoned for mixed-uses and nonresidential zones that permit multi-family uses.

The City amended the Zoning Code with Ordinance 2020-31R to address the provision of LBNC in CG, CN and CP zones where there are mixed-use overlay areas that are zoned for mixed-use and nonresidential zones permitting multi-family uses.

Housing for Persons with Disabilities
Both the federal Fair Housing Amendment Act ( “FHAA”) and the California Fair Employment and Housing Act direct local governments to make reasonable accommodations (that is, modifications or Resolution No. 2023-31
Exhibit "B"
77 of 291
354
Item18.
exceptions) in their zoning laws and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. The City conducted an analysis of the zoning ordinance, permitting procedures, development standards, and building codes to identify potential constraints for housing for persons with disabilities. The City’s policies and regulations regarding housing for persons with disabilities are described below.

Land Use Controls
Under State Lanterman Developmental Disabilities Services Act (also known as the Lanterman Act), small licensed residential care facilities for six or fewer persons must be treated as regular residential uses and permitted by right in all residential districts. In accordance with State law (Lanterman Developmental Disability Services Act, AB 846, compiled of divisions 4.1, 4.2 and 4.7 of the Welfare and Institutions Code and Title 14 of the Government Code), Escondido allows residential care facilities serving six or fewer persons within all residential zones. Residential care facilities serving more than six persons are conditionally permitted in all residential zones except the mobile-home park zone (R-T). The City does not have a local requirement for proximity between two special needs housing sites.

The City’s Zoning Code provides for transitional/supportive housing as residential care facilities only.

The Zoning Code will be amended to address the provision of these housing types pursuant to State laws (see discussions above).

Definition of Family
Local governments may restrict access to housing for households failing to qualify as a “family” by the definition specified in the Zoning Code. Specifically, an overly restrictive definition of “family” that limits the number of and differentiates between related and unrelated individuals living together could illegally limit the development and siting of group homes for persons with disabilities, but not for housing families that are similarly sized or situated.

The City of Escondido Zoning Code defines a “family” as “one or more persons related by blood, marriage, or adoption, or a group including unrelated individuals living together as a relatively permanent, bona fide, housekeeping unit.” The City’s definition of family does not restrict access to housing.

Building Codes
The Building and Safety Division actively enforces the California Building Code provisions that regulate the access and adaptability of buildings to accommodate persons with disabilities. No unique restrictions are in place that would constrain the development of housing for persons with disabilities. Government Code Section 12955.1 requires that 10% of the total dwelling units in multi-family buildings without elevators consisting of three or more rental units or four or more condominium units subject to the following building standards for persons with disabilities:
• The primary entry to the dwelling unit shall be on an accessible route unless exempted by site impracticality tests.
• At least one powder room or bathroom shall be located on the primary entry level served by an accessible route.
• All rooms or spaces located on the primary entry level shall be served by an accessible route.

Rooms and spaces located on the primary entry level and subject to this chapter may include Resolution No. 2023-31
Exhibit "B"
78 of 291
355
Item18.
but are not limited to kitchens, powder rooms, bathrooms, living rooms, bedrooms, or hallways.
• Common use areas shall be accessible.
• If common tenant parking is provided, accessible parking spaces is required.

Reasonable Accommodation
Both the Federal Fair Housing Act and the California Fair Employment and Housing Act direct local governments to make reasonable accommodations (i.e. modifications or exceptions) in their zoning laws and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. For example, it may be reasonable to accommodate requests to waive a setback requirement or other standard of the Zoning Ordinance to ensure that homes are accessible for the mobility impaired. Whether a particular modification is reasonable depends on the circumstances.

The City adopted an amendment to the Zoning Code establishing a formal reasonable accommodations procedure in 2001. The Zoning Code gives authority to the Direction of Community Development (or his/her designee) to make decisions regarding reasonable accommodation requests. There is no fee imposed on the request for reasonable accommodation. However, if the project for which the request is being made also requires some other planning permit or approval, then the applicant must file the request together and submit the required fees associated with the related permits.

In determining the reasonableness of a requested accommodation, the Director will consider the following factors:
• Whether the housing which is the subject of the request for reasonable accommodation will be used by an individual protected under the Acts;
• Whether fulfillment of the request is necessary to make specific housing available to an individual protected under the Acts;
• Whether the accommodation will impose an unreasonable financial or administrative burden on the City;
• Whether the accommodation will require a fundamental alteration of the zoning or building laws, policies and/or procedures of the City;
• Whether the accommodation will have any potential impact on surrounding uses; • Physical attributes of the property and structures; and • Any other factor deemed relevant to the determination according to the Acts, as amended.

The requirement to be compatible with surrounding uses may be considered subjective and potentially constraining development of housing for persons with disabilities.

Permits and Processing
A request for a retrofit of property to increase accessibility would be handled through the building permit process, if the retrofit is of a nature to be governed by the building code. Group homes, with fewer than six persons, are permitted by right in the residential zones. Modifications to the structure would be made through the building permit process, if the modifications proposed are under building code jurisdiction.

Resolution No. 2023-31
Exhibit "B"
79 of 291
356
Item18.

Depending on the zone classification of the property, a group home for more than six persons requires either a plot plan or a Conditional Use Permit. There is no standard list of conditions; each site would be reviewed and conditions assigned based on the specifics of the site and proposed project. A plot plan does not require a public hearing. A Conditional Use Permit requires a public hearing by the Planning Commission.

Development Conditions and Fees
Residential developers are subject to a variety of fees and exactions to process permits and provide necessary services and facilities as allowed by State law. In general, these development fees can be a constraint to the maintenance, improvement, and development of housing because the additional cost borne by developers contributes to overall increased housing unit cost. However, t he fees are necessary to maintain adequate public services and facilities in the City in concert with adopted Quality of Life Standard thresholds set forth in the General Plan. These fees have not been found to act as a constraint to the development of housing in Escondido.

Planning processing costs are covered in part by applicant fees. Development impact fees are charged to a new development to pay for the local infrastructure needed to serve it. Within the San Diego region, all 18 of the local jurisdictions and the County charge development impact fees. Impact fees can be charged for a variety of public facilities, including utilities, parks, open space, fire stations, libraries, and transportation improvements such as streets, highways, and transit.

Development impact fees enable the City to shift at least part of the capital -financing burden to new development, and synchronize new development with the installation of these new public facilities.

Escondido's impact fees fall within the average when compared to those of the other jurisdictions.

Additionally, the City conducts a periodic review of the fees to insure they reflect the current impacts and necessary improvements for the standard level of service.

Table 45 summarizes the most common planning and development impact fees for the City of Escondido and other North County cities located along the State Route 78 corridor. In general, the City’s fees are comparable to developments in other North San Diego communities. Table 46 compares the estimated total fees for typical projects based on a fee survey conducted by the Building Industry Association of San Diego. As shown, fees in Escondido fall within the middle to low end of the spectrum compared to other communities in the region. The fee amounts reported below for the City of Escondido include inflationary adjustments, adopted pursuant to R2020-125 on October 28, 2020, effective on February 22, 2021.

To facilitate residential development in the current economic climate, the City revised its Development Fee Deferral Policy in June 2012. This revision expanded the existing policy to allow residential developers (for projects of five or more units) to defer payment of development fees until occupancy, not to exceed one year from building permit issuance.

Resolution No. 2023-31
Exhibit "B"
80 of 291
357
Item18.

Table 45: Planning and Development Fees Regional Comparison (2020/21) Jurisdiction Escondido* Carlsbad* Oceanside* Vista San Marcos Residential Unit
Type (cost per
unit)
Single
Family
Multi-
family
Single
Family
Multi-
family
Single
Family
Multi-
family
Single
Family
Multi-
family
Single
Family
Multi-
family
Planning Fees
Design Review/
Development
Review
$524.97 - $846.97 varies $7,000 - $10,000 $953.26 $2,470 $3,430 Major Use
Permit/
Conditional Use
Permit
$6,972.97 $4,913 $5,000 $8,064.36 $3,476
Tentative Parcel
Map $3,970.97 $3,678 - $4,169 $3,000 $4,740.73 $2,090
Tentative
Subdivision Map
$6,128.87 -
$12,652.57 $8,193 $8,000 $7,292.45 (5-15 lots)
$10,042.96 (15+ lots) $2,690 + $50/lot
Environmental
Review-Initial
Study/Addendum
$2,565.00 $2,753+ $5,000 $6,930.91+ $200.00
General Plan
Amendment
$5,968.18 -
$6,954.45 $4,677 - $6,747 $10,000 - $15,000 $10,617.25 $2,500 Impact/Capacity Fees
Facilities Fee $4,969 $4,969 $15,423 $9,039 $2,621 $2,621 $1,218 $1,218 N/A N/A Parks Fee $6,986 $6,663 $7,649 $6,190 $4,431 $4,431 $8,086.54 $8,035.77 $6,251 Traffic Impact
Fee $4,191 $2,095 $7,500 $6,000 $1,032 $582 $5,667.86 $4,534.29 $6,747 $4,048 Drainage Fee $1,136 $469 $2,054 $3,589 $2,054 $976 varies $3,625 – $28,261/acre
Other Fees $15,430 $9,148 $16,324 $12,398 $46,330 $8,718 $5,739.67- $6,824.48
$4,131.46-
$4,890.83 $30,083 $15,816
Total per Unit $32,712 $23,344 $49,243 $33,986 $56,468 $17,328 varies varies varies varies Source: City of Escondido (Updated February 23, 2021), City of Carlsbad, City of Oceanside, City of Vista Fees (July 2021), City of San Marcos Adopted 2021-2029 Housing Element.
*The cities of Escondido, Carlsbad, and Oceanside are “full service” cities, whereas Vista and San Marco are not. According to the Institute of Local Governments (2016), a “full service” city is responsible for providing all or most of city services, such as law enforcement, fire suppression, land use planning, parks and recreation, water and wastewater services, solid waste collection, and public works.

Note: City of Oceanside’s discretionary fee costs are base deposit amounts, and vary depending on total amount of time billed toward a project and may exceed initial deposit amount

8. 8 City of Oceanside, Planning Fee Schedule, and City of Oceanside Development Services Department and Economic and Community Development Department Policy No. 201101/Policy and Procedure for Development Deposit Account Administration.

Resolution No. 2023-31
Exhibit "B"
81 of 291
358
Item18.

Table 46: Total Fee Comparisons (2019-2020)
Jurisdictions
Per Unit Permit and Impact Fees
Single Family
Townhome
(Type V
Construction)
Condominium
(Type III
Construction)
Apartment
(Type V
Construction)
Carlsbad $42,616.78 $23,012.02 $17,086.21 $16,762.04
Chula Vista $57,167.97 $42,481.32 $38,577.18 $38,596.86 Encinitas $22,932.15 $15,984.48 --- $15,233.65
Escondido $37,044.15 $31,185.86 $29,360.35 $29,360.35
Imperial Beach $15,161.22 $11,262.71 $9,832.14 $21,010.37 La Mesa $27,442.49 $19,242.63 $14,248.72 $12,906.75
Lemon Grove $13,563.65 $6,259.63 $4,870.52 $5,106.55
National City $15,025.99 $5,655.93 $4,175.54 $4,175.54
Oceanside $68,235.30 $25,089.74 $17,254.33 $17,178.01
Poway $26,528.05 $21,194.22 $2,059.13 $20,898.17
San Diego $155,367.00 $103,121.73 $95,731.81 $97,461.70 San Marcos $30,761.34 $25,588.10 $23,410.80 $14,184.14
Santee $78,142.00 $67,667.00 $64,247.00 $57,827.00
San Diego County $21,797.00 $12,793.00 $10,900.00 $11,156.00 Vista $27,546.37 $20,804.79 $23,176.90 $18,608.86
Source: BIA 2019-2020 Fees Study for San Diego County; City of Santee Fee Schedule FY2020-21; Padre Dam Municipal Water District Sewer and Water Capacity Fee Schedule 2021; Santee Elementary School District Developer Fees 2021; Grossmont Union High School District Developer Fees 2021

In 2020, the City conducted a Fiscal Impact Assessment that determined that the cost to serve new residential development generally exceeds the revenue generated from that development. In order to ensure that new residents within the City continue to receive the services at their current level, a Community Facilities District (“CFD”) has been created as one potential mechanism to fund municipal services associated with new residential development. A CFD is special tax levied annually on the property tax bill. Also known as a Mello-Roos, this tax can be used to fund improvements required to support the development of new homes or the ongoing costs to serve new development. In accordance with Resolution No. 2020-44, adopted on May 13, 2020; Ordinance No, 2020-10, adopted on June 3, 2020; and Ordinance No. 2020-24, adopted on October 21, 2020; and as otherwise authorized by the City’s longstanding General Plan policies and authority under State law, new residential development is expected to fund all on-going operational costs of providing municipal services required for the project. Such funding may occur through either an agreement to voluntarily form or annex into a CFD or the establishment of another lawful funding mechanism to offset the impacts to public services associated with the project. With respect to the CFD, for new residential units within the City limits, the FY20/21 adopted special tax rates range from $536 to $783 per dwelling unit.

Although Resolution No. 2020-44, Ordinance No, 2020-10, and Ordinance No. 2020-24 were enacted to protect the health and safety of citizens and further the general welfare, the City will periodically re-examine the aforementioned policies to determine whether, under certain conditions, if they directly or indirectly constitute a barrier to the maintenance, improvement, or development of housing for all income levels. As previously mentioned, this 2021-2029 Housing Element was prepared under Resolution No. 2023-31
Exhibit "B"
82 of 291
359
Item18.
the cover of a Housing and Community Investment Study, which among other things identifies all relevant land use controls and their impacts on the cost and supply of housing, including the CFD policies. A Sector Feasibility Study was prepared and shows that the cumulative impacts of standards and policies, including the policy that contemplates new residential development funding the on-going costs of municipal services required by such development, does not impede the ability to achieve maximum allowable densities. Such an examination may reveal that certain policies have a disproportionate or negative impact on the development of particular housing types (e.g., multi-family) or on housing developed for low or moderate income households. However, affordable housing projects and other organizations that meet the requirements of Revenue and Taxation Code section 214 may qualify for a Property Tax Welfare Exemption.

The City will continue to monitor whether ordinances, policies, or practices related to development conditions and fees, such as those covered in this section or those new ly contemplated during this housing element cycle, have the effect of unduly constraining the maintenance, improvement, or development of housing, including but not limited to excluding housing affordable to low - and moderate-income households.

Transparency in Development Process
To increase transparency and certainty in the development application process as required by law (AB 1483), the City has a variety of tools available for developers. The City’s Planning Division website has links to the City’s zoning ordinance, zoning parc el look-up tool, and other resources (https://www.escondido.org/planning.aspx
). Direct links are also provided below:
• Zoning Ordinance: http://www.qcode.us/codes/escondido/view.php?topic=33 • Parcel look-up tool: https://www.escondido.org/parcel-lookup.aspx • Planning Fee schedule:
https://www.escondido.org/Data/Sites/1/media/Planning/FeeSchedule2021- 22Revised12.21.21.pdf
On- and Off-Site Improvements
Infrastructure is already in place in multi-family areas. Development standards vary depending on the land use pattern in the area. Street width requirements (curb to curb) are 36 feet for public and 28 feet for private rural residential streets, 42 for local collectors, 64 for collectors and 82 for major roads.

Full curb and gutter are required, with the standard five-foot wide sidewalk per ADA requirements.

Water and sewer capacity must be adequate to meet normal and emergency situations with a water capacity to provide a minimum of 540 gallons of water per day per household and a sewage capacity to treat a minimum of 250 gallons per day for each residence. The City is also required to comply to NPDES (National Pollution Discharge Elimination System) storm water standards with structural and non-structural methods, such as the use of detention basins, catch basin and filters, and drains.

Requirements for on- and off-site improvements vary depending on the presence of existing improvements, as well as the size and nature of the proposed development. In general, the City requires the following improvements and facilities for new developments:
• Grade Improvements: The City requires developers to grade and improve all land dedicated or to be dedicated for streets or easements, bicycle ways and all private streets and private easements involved in a Final Map or Parcel Map in such manner and with such improvements as are necessary in accordance with the Escondido City standards. • Sewers: The City requires developers to install sewers or sewage disposal systems in accordance with the Private Sewage Disposal Systems ordinance.

Resolution No. 2023-31
Exhibit "B"
83 of 291
360
Item18.
• Water Supply: The City requires developers to provide proof satisfactory to the City Engineer that there exists an adequate potable water supply available to each lot or parcel and that the developer will install or agree to install water supply facilities to the satisfaction of the City Engineer provided that the City Engineer may require such other system or size of water supply pipe as recommended by the water facility serving the project. • Fire hydrants: The City requires developers to install as required by the City Engineer, fire hydrants and connections, which hydrants and connections shall be of a type approved by the Escondido Fire Chief.
• Public Sewer system: When the City Engineer determines that, by reason of the size and shape of the proposed lots, the nature of the terrain to be subdivided, the soil condition of the lots and the development of the area in the vicinity of the proposed subdivision, a public sewer system serving the lots will be required to preserve the public health, or if there is a public sewer main within two hundred (200) feet of the property boundary, the developer shall be required to install or agree to install a public sewer system serving said lots as a condition precedent to the approval of any Final or Parcel Map.
• Undergrounding Utilities : All new and existing utilities distribution facilities, including cable television lines and other communication facilities within the boundaries of any new subdivision or within any property abutting a proposed new subdivision, shall be plac ed underground pursuant to the requirements of Escondido Municipal Code. • Flood Control: The developer is required to install all flood control and drainage improvements in conformance with the drainage policies of the General Plan, the Drainage Master Plan, the Engineering Division Policy for Drainage Studies, and City design standards. • Street Trees: The developer is required to install street trees as required by Escondido City standards pursuant to the landscape standards of the Zoning Code. • Traffic Control Signals: The developer is required to install such traffic control signals as may be required by the City Engineer, Planning Commission or City Council.

Building Codes and Enforcement
The City of Escondido has adopted the 2019 California Building Code. The City has also adopted the 2019 Green Building Standards Code. No amendments have been made that diminish the ability to accommodate persons with disabilities. There are no locally amended universal design elements; the universal design provisions of the California Building Code are enforced. Exceptions or methods of alternative compliance to the requirements of the California Building Code are contained in the code.

The City has no local ability to waive the provisions of the State building codes. However, a mechanism within the building code allows for an appeal process to challenge interpretations of the building code requirements.

The Code Enforcement Division, which is a section of the Community Development Department, enforces applicable building codes. Code enforcement is reactive and prioritized based on risks to health and safety. However, code enforcement remains complaint-based and investigates complaints to determine appropriate steps for correction. Code Enforcement also refers households that may quality for assistance to the City’s rehabilitation programs.

Permits and Processing Times
Government Code section 65943 states that local governments have 30 days after an application for a housing development project is submitted to inform the applicant whether or not the application is Resolution No. 2023-31
Exhibit "B"
84 of 291
361
Item18.
complete. If the local government does not inform the applicant of any deficiencies within that 30- day period, the application will be "deemed complete", even if it is deficient. If the application is determined to be incomplete, the local government shall provide the applicant with an exhaustive list of items that were not complete pursuant to the local government’s submittal requirement checklist.

Information not included in the initial list of deficiencies in the application cannot be requested in subsequent reviews of the application.

The processing time needed to obtain development permits and required approvals is commonly cited by the development community as a prime contributor to the high cost of housing. Depending on the magnitude and complexity of the development proposal, the time that elapses from application submittal to project approval may vary considerably.

The Community Development Department is currently preparing a development processing guide with the newcomer to the permit process in mind. It details the steps involved in obtaining a zoning or building permit(s) – from preliminary review through final approval. This information will help people who have had little or no experience with the building permit process. Experienced building professionals will also find information about the required amount of processing time useful for their scheduling and/or seek streamlining opportunities.

Processing Times
Factors that can affect the length of development review on a proposed project include: completeness of the development application submittal, responsiveness of developers to staff comments and requests for information, and projects that are not exempt from the California Environmental Quality Act (“CEQA”), require rezoning or general plan amendment, or are subject to a public hearing before the Planning Commission or City Council.

Certainty and consistency in permit processing procedures and reasonable processing times is important to ensure that the development review/approval process does not discourage developers of housing or add excessive costs (including carrying costs on property) that would make the project economically infeasible. The City is committed to maintaining comparatively short processing times. Total processing times vary by project, but most residential projects are approved in six months. Table 47 provides a detailed summary of the typical processing procedures and timelines of various types of projects in the City.

Table 47: Processing Time by Development Type
Project Type Reviewing
Body
Public
Hearing
Required
Appeal Body
(if any)
Estimated Total
Processing Time
Single-Family Subdivision Planning Commission Yes City Council 3-6 months Multiple-Family Staff/
Administrative No Planning
Commission 12-20 weeks
Multiple-Family (with subdivisions) Planning Commission and City Council Yes None 4-6 months
Mixed-use Planning Commission
and City Council Yes None 4-6 months
For apartment projects, processing periods normally require an administrative review and take approximately 12 to 20 weeks from the time of submittal of a complete application to the time of construction. Below are the required steps in the following order:

Resolution No. 2023-31
Exhibit "B"
85 of 291
362
Item18.
• Submit Plot Plan Application
• Environmental and Plot Plan Review
• Building and Grading Permits Construction Plans Submittal • Resubmit Construction Plans as needed.
• Permits Issued
Other residential development proposals require administrative, Planning Commission, or City Council approval as shown below:

Administrative Approval
Staff review – up to 10 weeks:
• Lot Line Adjustments
• Certificates of Compliance
• Parcel Maps
• Administrative Adjustments
• Accessory Dwelling Units
Planning Commission Approval
Public hearing – up to 16 weeks including environmental review:
• Conditional Use Permits
• Grading Exemptions (for grading exceeding requirements) • Precise Development Plans
• Tentative Subdivision Maps
• Variances
City Council Approval/with Planning Commission Recommendation Public hearing – up to 26 weeks including environmental review:
• Zone Changes (rezones and pre-zones)
• General Plan Amendments
• Extensions of Time for Tentative Subdivision Maps
• Planned Developments
• Specific Plans
• Condominium Permits
• Habitat Loss Permits
• Development Agreements
City Council Approval/with Planning Commission Recommendation The processing time for the most common residential development applications are summarized in Table

48. These applications are often processed concurrently. The City continues to explore ways to streamline Resolution No. 2023-31
Exhibit "B"
86 of 291
363
Item18.
the processing of applications and reduce fees for redevelopment/ rehabilitation of affordable, fair market and mixed-use housing. The City also explores ways to encourage development of housing for middle- and high-income households in order to promote a balanced community. The City conducted an evaluation to streamline processes and processing times. Specifically, the City consolidated the Design Review Board into the Planning Commission. In so doing, the City eliminated one step in the review process, thereby shortening the timeframe of review.

Table 48: Processing Time by Process / Permit
Process/Application Time
Conditional Use Permit 3-6 months
Design Review 0 weeks (concurrent review)
General Plan Amendment 4-6 months if no public vote is needed Environmental Impact Reports 9-12 months
Plan Check/
Building Permits
15-20 working days for plan check, or longer depending on resubmitted plan checks and how fast architect responds to corrections
Variance 3-6 months
Zone Change 4-6 months
Source: City of Escondido Planning Department, 2020.

Design Review Process
The design review process is regulated by Municipal Code Chapter 33, Article 64. The purpose of design review is to preserve the natural charm, integrity and quality of the built environment, by regulating the design and appearance of development in order to ensure compatibility with existing development and ensure that new development is consistent with or exceeds the high quality of the development projects currently located in the City.

Design review takes the following into account: site development, circulation, grading, setbacks, exterior appearance of buildings, structures, signs, lighting, street furniture, landscaping and other outdoor appurtenances. The review of plans is done either by City staff or by the Planning Commission in conjunction with other discretionary reviews. Depending on the project approval, Planning staff review the projects for compliance with the design review standards and provides recommendations to the Planning Director regarding administrative projects that require design review, or the Planning Commission. In order to gain approval, the following findings must be made:
• The proposed site plan has been designed in a manner which is compatible with the natural and urban characteristics of the site and the surrounding neighborhood. • The bulk, scale, and architectural design of the proposed structure is compatible with the character of the surrounding neighborhood.
• The project incorporates landscaping, irrigation and screening which is drought tolerant, appropriate for the site, and in compliance with the landscape standards established by the city.
• All grading related to the project conforms to design standards set by Article 55 (grading and erosion control).
• The project incorporates applicable design review standards contained in the Zoning Code and other applicable ordinances into the site layout and building design.

Resolution No. 2023-31
Exhibit "B"
87 of 291
364
Item18.
• The project is consistent with the goals and objectives on the General Plan.

These findings are reasonable and do not constrain housing development in the City. Typical revisions required by staff or the planning commission include: changes to landscape materials; building elevation details / enhancements / articulation; changes to colors; and minor site plan adjustments. Usually, these changes can be accommodated without increasing the costs of development.

Decisions of the Director may be appealed to the Planning Commission by filing a written request to the Planning Division within ten days following the final decision of the Director. Decisions of the Planning Commission may be appealed to the City Council.

Conditional Use Permit
A conditional use permit is a zoning instrument used primarily to review the location, site development or conduct of certain land uses. These are uses which generally have a distinct impact on the area in which they are located, or are capable of creating special problems for bordering properties unless given special attention. The Planning Commission has the authority to grant, conditionally grant or deny a conditional use permit application, with one exception: The decision on whether or not to issue a conditional use permit for residential care facilities for the handicapped lies with the Director of Planning and Building. In order to be approved, the Planning Commission must make the following findings:
• A conditional use permit will be granted upon sound principles of land use and in response to services required by the community.
• A conditional use permit will not be granted if it will cause deterioration of bordering land uses or create special problems for the area in which it is located. • A conditional use permit must be considered in relationship to its effect on the community or neighborhood plan for the area in which it is to be located.

Planning Commission decisions can be appealed to the City Council. Most residential uses are permitted by right in residential zones. Therefore, the CUP process does not serve to constrain housing development.

Environmental and Infrastructure Constraints
A community’s environmental setting affects the feasibility and cost of developing housing.

Environmental issues range from the availability of water to the suitability of land for development due to potential exposure to seismic, flooding, wildfire and other hazards. If not properly recognized and accommodated in residential design, these environmental features could potentially endanger lives and property. This section summarizes these potential constraints on residential development in Escondido.

Soil, Steep Slopes, and Seismic Safety
Regulation of development in areas of steep slopes is directly related to public safety and health, as the degree of slope is related to flood control problems, erosion control, landslides, and fire hazard.

These problems become particularly acute on slopes greater than 25% . Accordingly, many communities, including the County, map slopes greater than 25% , recognizing them as potentially hazardous areas. Similarly, many of the soil compositions that comprise the Escondido Planning Area present difficulties for development in that they cannot support roadways or foundations, are unacceptable for septic systems, and are highly erodible.

Resolution No. 2023-31
Exhibit "B"
88 of 291
365
Item18.

The historical seismicity of the San Diego region is low compared to the rest of Southern California.

This may be due to San Diego’s locatio n on a more stable block or it may only reflect a period of historical record which is too short to be meaningful. San Diego County has experienced strong shaking and damage from several earthquakes, but none of the recent ones have been particularly destructive.

All of the faults which could affect San Diego County are part of the San Andreas system of faults.

The portion of California west of San Andreas fault is part of the Pacific plate and is moving north with respect to the rest of the continent which is part of the North American plate. This movement is distributed among several faults in addition to the main San Andreas Fault. In and near San Diego County these other faults include the San Jacinto, Coyote Creek, Earthquake Valley, Agua Caliente, Elsinore, Rose Canyon, San Miguel (Mexico), Agua Blanca (Mexico), and Coronado Banks (off shore).

The largest fault in the San Diego region, the San Andreas Fault, is at least 800 miles long and is located 27 miles east of Borrego in the Coachella Valley. There is increasing concern that the 85- mile section from north of San Bernardino to the Salton Sea is overdue to rupture, having been “locked” for the last 200 years. Such an event could cause an 8.3 magnitude earthquake - the size of the 1906 San Francisco quake. An 8.3 event on the San Andreas would subject San Diego County of shaking of intensity VII to VIII, enough to cause considerable damage.

East of San Diego the closest active fault is the Elsinore Fault, which passes through the town of Elsinore, along the south side of Palomar Mountain, through Lake Henshaw, Santa Ysabel Indian Reservation, down Banner Canyon east of Julian, and out in the desert near Vallecitos. The Elsinore Fault apparently joins the Laguna Salada Fault on the east side of the Sierra Cocopah in Baja California. The Elsinore Fault is probably capable of generating an earthquake of magnitude 7.4.

Depending upon which segment moved, considerable damage might occur in Escondido, Ramona, Julian, Borrego, and Jacumba. Portions of all of the roads to the east would probably be temporarily closed by landslides.

The Community Protection and Safety Element of the City’s General Plan includes goals, policies, and actions that are designed to reduce the risks of hazards related to soil, steep slopes, and seismic activity, such as the strict enforcement of standards from the Uniform Building Code and the requiring of specific geotechnical reports.

Flood Hazards
There are sections of the City that would be subject to inundation in the event of a 100-year storm.

These areas include northern portions of Reidy Creek north of Rincon Avenue, an area alongside Escondido Creek west of Hale Avenue, along Kit Carson Park Creek north of Via Rancho Parkway, an area straddling Midway Drive north of the Escondido Channel, and an area straddling Valley Parkway between Ash and Citrus.

The Community Protection Element of the City’s General Plan includes policies to designate appropriate land uses to minimize flood related damages and to ensure proper creek and channel maintenance to ensure their water-carrying capacity.

The City maintains floodplain standards to minimize flood risks to existing and proposed developments. Projects built in the floodplain area may be subject to additional findings and risk mitigation, but the floodplain standards do not prohibit or constrain housing developments located within the floodplain. The City has recently approved a 145-unit affordable housing project (Quince Resolution No. 2023-31
Exhibit "B"
89 of 291
366
Item18.

Street Senior Apartments) that was partially built within the floodplain. The recent project example demonstrates that flood hazards do not create actual constraints on development.

Hazardous Materials
Hazardous materials represent a potential threat to those who are working with the materials and those who could be affected by its improper or accidental disposal. The cleanup of hazardous wastes from the past and the handling and disposal of newly generated wastes will affect people many generations from now. Site contamination may impair the City’s ability to implement this Plan by increasing the costs of development, requiring certain land use restrictions, and causing delays while necessary cleanups are implemented. The policies presented in the Community Protection Element of the City’s General Plan are intended to protect the public from existing and future hazardous contamination problems.

Ridgeline and Hillside Conservation
One characteristic that distinguishes Escondido from other communities in the region is its location in a series of valleys that are surrounded by visually distinctive hillsides and ridgelines. The varied topography has been identified as one of Escondido’s most important assets – one that has helped create the City’s distinct identity. To protect these assets, the City outlined a series of policies in its Resource Conservation Element that are geared toward controlling development on the hillsides and along the ridgelines.

Water Supply
Water supply for the City stems primarily from two sources: local water, derived from precipitation, and stored in Lakes Henshaw and Wohlford, and imported water transmitted by the San Diego County Water Authority. A master plan, administered by the City ensures the adequacy of these facilities to meet the demands imposed by development projected over the General Plan horizon. Continued urban development will place increasing demands on these supplies. Potential limitations on the availability of supplies require the need to combine long-term planning for water supply with long- term planning for community development in Escondido. Limited areas of the City are provided water service by the Rincon del Diablo Water District.

The 2012 Water Master Plan was prepared at the same time and under the same assumptions as the 2012 Escondido General Plan Update, which identified new growth within the same East Valley area as that contemplated for the East Valley Specific Plan. The General Plan Update considered a range of 3,350 to 5,825 new residential units that would be added to the General Plan’s build-out projection of approximately 67,900 dwelling units. The plan describes a number of capital improvement projects over the next thirty years, including water recycling, demand management measures, and conservation rebates to ensure the availability of water to meet the City’s projected build-out.

Wastewater Capacity
Escondido’s wastewater is treated at the Hale Avenue wastewater treatment plant, conveyed over land, and discharged through an ocean outfall. A Master Plan, administered by the City, ensures the adequacy of these facilities to meet the demands imposed by development projected over the General Plan horizon. Significantly, the availability of sewer service distinguishes between urban Resolution No. 2023-31
Exhibit "B"
90 of 291
367
Item18.
development and rural development. Thus, the extension of services and the availability of capacity will influence how much and where Escondido grows.

The Environmental Impact Report ( “EIR”) for General Plan Update concludes that existing wastewater treatment capacity is not adequate to accommodate the growth anticipated under the General Plan Update, which would add over 9,400 units by 2035. The Escondido Water and Wastewater Division (EWWD) updated its sewer master plan to ensure adequate sewage treatment capacity to serve the projected buildout population of the updated General Plan. Wastewater demands in the Escondido service area, resulting from the 2021-2029 Housing Element sites inventory, has already been studied and accommodated by the 2012 Wastewater Master Plan.

Adequate sewage treatment capacity is projected to accommodate the growth allowed under the current General Plan and Sixth Cycle Housing Element.

Priority for Water and Sewer Services
Much of the new housing growth is expected to occur within the EVSP area. Adequate water and sewer services are available to accommodate the City’s projected Regional Housing Needs Assessment. Nevertheless, Senate Bill 1087 (enacted 2006) requires that water and sewer providers develop written policies that grant priority to proposed development that includes housing affordable to lower-income households. The legislation also prohibits water and sewer providers from denying or conditioning the approval of development that includes housing affordable to lower income households, unless specific written findings are made. As the water and sewer service provider, the City will include a policy in this Housing Element to prioritize services. The City will also provide a copy of the adopted Housing Element to the Rincon del Diablo Water District, which serves portions of the City, within 30 days of adoption. The City will continue to coordinate with Rincon to ensure priority service provision to affordable housing developments.

Resolution No. 2023-31
Exhibit "B"
91 of 291
368
Item18.

5. Housing Resources
Regional Housing Needs Assessment
The Regional Housing Needs Assessment (“RHNA”) allocates to each city and county in California a “fair share” of the region’s projected housing needs by household income group. The major goal of the RHNA is to ensure a fair distribution of housing among cities and counties within their respective regions, so that every community provides an opportunity for a mix of housing for all economic segments.

The San Diego Association of Governments (“SANDAG”) adopted its RHNA in July 2020 for the Sixth Cycle Housing Element, which covers an eight-year planning period (April 2021 through April 2029) and addresses housing issues that are related to future growth in the region. The housing allocation targets are not building requirements, but goals for eac h community to accommodate through appropriate planning policies and land use regulations. Allocation targets are intended to ensure that adequate sites and zoning are made available to address anticipated housing demand during the planning period.

Escondido’s share of regional future housing needs is a total of 9,607 new units for the period of April 15, 2021, to April 15, 2029; it is the third highest allocation in the SANDAG region. This allocation is divided into various income categories, as shown in Table 49. The RHNA was distributed to jurisdictions in the region using a formula that accounted for access to public transit and employment. The RHNA al so includes a fair share adjustment, which allocates future need by each income category in a way that meets the State mandate to reduce the overconcentration of lower-income households in one community.

Table 49: RHNA Allocation by Household Income (2021-2029) Above Moderate Moderate Low Very Low Total
4,967 1,527 1,249 1,864 9,607
Note: The City has a RHNA allocation of 1,864 very low income units (inclusive of extremely low income units). Pursuant to State law (AB 2634), the City must project the number of extremely low income housing needs based on Census income distribution or assume 50% of the very low income units as extremely low. Therefore, the City’s very low income RHNA is split into 932 extremely low and 932 very low income units. However, for the purpose of identifying adequate sites for the RHNA, no separating accounting is required.

Credits Toward RHNA
Housing units that are approved, under construction, or developed with building permits issued after June 30, 2020, can be credited toward this Sixth Cycle RHNA. Table 50 summarizes these particular units. Many of these units were achieved through recycling of existing lower -intensity uses in the Downtown and South Centre City Specific Plan areas; some are in single-family subdivisions in more suburban/rural areas of the City.

Resolution No. 2023-31
Exhibit "B"
92 of 291
369
Item18.

Table 50: Credits Toward RHNA
Credits toward RHNA Above Moderate Moderate
Income
Low Income Total
Approved 1,002 90 155 1,247
Entitled or Under Construction (permitted after July 1, 2020) 355 0 0 355 Projects in Review 649 0 371 1,020
Total 2,006 90 526 2,622
Entitled Units
A project converting a vacant golf course began construction prior to July 1, 2020. The project is entitled for 380 total units, and in May 2020 received building permits for 25 units, including model homes. A total of entitled 355 units remain unpermitted as of July 1, 2020, but have since obtained permits or will obtain permits and will begin construction during the Sixth Cycle RHNA planning period.

All of these units are expected to be affordable to above moderate-income households (see Table A- 1 in Appendix A).

Approved Units
Projects that were approved but had not been issued building permits prior to July 1, 2020, are included in the RHNA as credits. The list of approved projects is included in Table A -2 in Appendix A: RHNA Credits. In total, the City has approved 1,247 units (1,002 above moderate units, 90 moderate income units, and 155 low income units) units, which are expected to be constructed during the Sixth Cycle planning period.

Units Undergoing Entitlement
In addition to projects that have already been approved, the City is currently processing entitlements for another 1,020 units, including 371 units expected to be affordable for low income households. The City anticipates that these units will be approved and constructed during the Sixth Cycle planning period. The list of projects undergoing review is included in Table A-3 in Appendix A: RHNA Credits.

Regardless of planned densities, these projects are counted toward the RHNA based on the income/affordability levels proposed by the projects.

Development Trends, Yields, and Realistic Capacity for Housing Much of the future development in Escondido is expected to occur within Downtown Escondido and in the South Centre City and East Valley areas. The Downtown, South Centre City, and East Valley areas of Escondido are characterized by a variety of underutilized commercial development and lower-intensity residential uses. Recognizing the need for additional housing and commercial employment opportunities, the City Council has adopted or is preparing specific plans for each of these areas to attract investment and encourage the production of housing for all income levels. Recently constructed or approved projects demonstrate the potential and likelihood that these areas will continue to see increased levels of housing production at and--with density bonuses for inclusion of affordable housing--above the maximum density allowed under zoning.

Resolution No. 2023-31
Exhibit "B"
93 of 291
370
Item18.

Very High-dDensity (75-100 du/ac)
Escondido’s Downtown Specific Plan was amended in 2012 to allow for residential densities of up to 75 and 100 dwelling units per acre (du/ac) through a majority of the planning area. In recent years, developers have pursued various projects in very high-density areas, including projects that incorporated commercial/mixed-use components as well as affordable and market-rate housing. A review of 14 recent projects found that developments in areas allowing 75 and 100 du/ac had an average residential yield of 80% of the maximum allowed. These trends clearly illustrate that the very high-density residential and mixed-use zoning in Escondido’s Downtown are actively incentivizing residential production at a variety of income levels.

While some of these recent projects were exclusively residential, the City identified nine different mixed- use projects built or proposed on sites with densities of 75 or 100 du/ac. These sites had an average yield of 69% of the maximum. Additionally, one of these projects is a statistical outlier, as it was a small commercial project that included a single unit. Generally, mixed-use developments have trended towards larger projects, and with the single outlier excluded, achieved an average yield of 77% of the maximum allowed on very -high-density sites. The City Council h as authorized the Community Development Department to remove mandatory ground floor commercial requirements from the Downtown Specific Plan. This action is anticipated to be completed in 2021. While the City is already experiencing high development yields in mixed-use projects and zones, the greater zoning flexibility will provide additional opportunities for residential development in Downtown, and likely increase densities beyond historic trends.

Medium-High-dDensity (12-45 du/ac)
The City allows for housing at 12 to 45 du/ac throughout most of the South Centre City Specific Plan, portions of the Downtown Specific Plan, and in R -2 through R-5 zones throughout the City.

Developments at these densities have consisted of mixed-use apartment complexes, affordable housing, and compact townhomes. A review of 15 recent and proposed projects illustrates that many developments are taking advantage of density bonuses and are achieving densities greater than the maximum permitted by the underlying zoning. On average, projects in this density range have been built close to or above the maximum allowed.

The single mixed-use project located in a zone allowing up to 30 du/ac achieved a density of 90% of the maximum allowed by zoning. While the City does not typically require mixed-use development at these densities, and is removing ground floor commercial requirements from the Downtown Specific Plan, the single mixed-use project illustrates that mixed-uses at these densities is feasible and likely to yield close to the maximum residential units allowed.

Lower Density Residential (0-11 du/ac)
The City has approved or is processing a number of lower -density, single-family subdivisions. A review of 24 of these projects found that these properties are developing at approximately 79% of the maximum allowable densities.

Affordable Housing Development
Escondido has seen substantial growth in the affordable housing stock of its Downtown area in recent years, with multiple developments taking advantage of density bonuses to construct additional lower income housing. A review of the recent and proposed affordable housing projects shows that affordable housing developments average approximately 114% of the maximum units allowed by the Resolution No. 2023-31
Exhibit "B"
94 of 291
371
Item18.
underlying zoning. This average is skewed down by a single, low-density suburban development that is affordable to seniors, which yielded only 62% of the maximum allowed. Multi -family projects with affordable housing have an average yield of 124% of the maximum allowed by zoning, and have been constructed in zones allowing between 12 and 100 du/ac. Furthermore, affordable housing has been constructed on non-vacant lands, with previous uses including warehouses, small medical facilities, single-family homes, and arterial commercial centers.

Based on recent affordable housing development in the City, it is reasonably expected that new affordable housing will continue to utilize density bonuses and construct more units than the base zone would otherwise permit.

Table 51: Affordable Housing Yields
Project Description Size
(Acres)
Zoning
Density Yield %
SUB 20-0002 - Habitat for Humanity 10 condos at 245 E. El Norte 0.57 12 147% ADM 20-0136 - 664 N. Fig Street 15 apartment units 0.59 18 140% PHG 15-0009 - Solutions for Change
Housing
33 affordable units & 1,120 SF
commercial 0.79 30 140%
PHG 14-0020 - Veterans Village 48 new units (54 total) + 1,500 SF commercial on 1.8 ac. 1.76 30 91%
ADM 20-0070 - 337 E. Valley Pkwy 50-unit affordable housing 0.57 75 118% Touchstone – Ivy 4 story, 95 new units 1.04 75 122%
PHG13-0010 - Meadowbrook 66-unit senior units 24.38 4.36 62% PHG 17-0028 - Quince Senior Housing 145-unit affordable senior housing 1.48 100 98% Source: Escondido Major Development Project Processing List, August 2020.

Small Lot Development and Lot Consolidation
State law requires that sites used to accommodate lower incomes be between 0.5 and 10 acres.

Escondido’s Downtown core generally consists of smaller lots that do not meet the 0.5-acre minimum.

Many of the smaller lots meet the intent of the HCD eligibility guidelines. The density allows projects of 15 or more units on each site, which enables incorporation of affordable housing. The very high densities also create a strong incentive to consolidate smaller parcels. Escondido has many small parcels and consolidation for redevelopment is very common. Lot consolidation is not a significant impediment to housing development in the region or Escondido. It occurs as part of the normal course of the land development process and is common to a significant percentage of development projects.

It occurs as part of the market conditions without incentive or subsidy as demonstrated by the projects described below.

The City has seen multiple examples of developers assembling and consolidating smaller lots to create a larger overall project site. The Touchstone - Ivy project at 343 E. 2 nd Avenue, which is being
developed for fully affordable housing, involved the assemblage of six different parcels that were previously developed for a large medical office building (Escondido Surgery Center). The building construction was expensive frame on podium over parking and the site had a very low land-to- improvement ratio of 0.37, demonstrating that the permitted residential density can make consolidation and development of expensive non-vacant sites viable, when the existing uses are no longer viable. The 1.0-acre site has since been purchased by an affordable housing developer that is proposing 95 affordable units (95 du/ac) . The Iwashita Apartments at 322 South Escondido Boulevard involves the consolidation of seven lots with different ownership to construct the 180-unit Resolution No. 2023-31
Exhibit "B"
95 of 291
372
Item18.
6-story mixed-use apartment complex on a total of 1.28 acres (134 du/ac). The existing lots are between 0.16 acre and 0.32 acre, with previous uses including used car sales, single -family homes, and small medical offices, with land to improvement ratios above 1. Another project at 829 South Escondido Boulevard involves redevelopment of a 1-story small strip commercial building complex on three lots, with sizes ranging from 0.16 acre to 0.32 acre, being consolidated to allow for a 21-unit apartment complex on 0.66 acres ( 32 du/ac), with several of the units reserved for lower income housing. The three parcels have land to improvement ratios both above and below one (depending on the parcel), illustrating that properties with low existing improvements and high net unit potential are exhibiting trends of redevelopment.

The City has seen many other examples of parcels that have been consolidated to provide a larger site for a housing development. Veterans Village, along South Escondido Blvd. and W. 15th Avenue consolidated six parcels, including several smaller than 0.5 acres, to build 54 -unit affordable apartments on 1.8 acres (30 du/ac) for veterans and their families. Another affordable housing project, Valley Seniors Village at the corner of Valley Parkway and Ivy Street (337 E. Valley Parkway) , aggregated five extremely small lots (each less than 0.2 acres) to provide a 0.41-acre site for a 50 unit affordable-housing project (119 du/ac). Finally, four existing single-family home lots are proposed to be consolidated to create a 1.0-acre site for a 44-unit (44 du/ac) apartment complex at the corner of South Escondido Boulevard and Vermont Avenue in the South Centre City Specific Plan. These recent and proposed projects provide direct evidence that lot consolidation is common and feasible in Escondido and is not a significant constraint, even when providing affordable housing. Lot consolidation for parcels smaller than 0.5 acres has been used frequently and contributed to multiple affordable housing projects. Therefor e, the City expects this trend to continue throughout the sixth cycle and is accounting for lot-consolidation when projecting for the number of potential low -income sites within the sites inventory.

These examples of consolidation of small lots into larger sites for redevelopment are common and the characteristics of the parcels in these examples are typical of the proposed RHNA sites in terms of location, existing or prior land uses, lot size, land -to-improvement ratios, and permitted development density. Additional examples of these RHNA site typologies and recent redevelopment projects with similar characteristics are provided in Appendix B, Sites Inventory . The list of sites includes land use, improvement to land value ratios, age of structures, and the number of units that could be added to a property to help demonstrate the viability of each parcel.

State law requires that sites used to accommodate lower-income RHNA units be between 0.5 and 10 acres. Based on the recent trends of lot consolidation for housing projects, including affordable projects, the City considered adjacent parcels with a cumulative size above 0.5 acres as able to accommodate lower -income units. All properties included for lower -income units either have individual sizes between 0.5 and 10 acres, or cumulative/consolidated sizes between 0.5 and 10 acres. Sites that otherwise would be eligible for lower -income units but that did not meet the size requirement were deemed appropriate for moderate income households. Escondido currently facilitates and expedites lot consolidation through a ministerial process for basic lot consolidation.

The City continues to encourage consolidation of lots to facilitate mixed-use and affordable development (see Program 1.1). The City is proposing a program to evaluate incentives to help identify, promote and facilitate lot consolidation and development on small lots.

Realistic Capacity and Development Likelihood Calculations Based on the recent Specific Plan Amendments spurring housing development in the Downtown, South Centre City, and semi -rural areas, there is a strong likelihood that developers will continue to Resolution No. 2023-31
Exhibit "B"
96 of 291
373
Item18.
invest in Escondido during the Sixth Cycle planning period. While recent project trends demonstrate the feasibility and likelihood that developers will continue to build at and above the allowed density, the City recognizes that some projects may not be constructed to their maximum potential, or otherwise may not be constructed during the planning period. In response, the City has adjusted its assumptions with respect to the realistic and expected development potential. As explained below, the methodology for projecting the development potential and likely project yields for the proposed East Valley Specific Plan (“EVSP”) differ from those used for the South Centre City and Downtown Specific Plan areas.

East Valley Specific Plan
The EVSP contains mechanisms to ensure that developers build close to the site’s maximum potential. For the mixed-use and urban residential districts, the plan sets both minimum densities and a target production point (“TPP”). Applicants are encouraged to meet and exceed the TPP; in cases where they develop below the TPP, the applicant is required to pay an in-lieu fee. Based on the EVSP’s strong incentives for developing at and above the TPP, s ite capacity in the EVSP was calculated by multiplying the TPP density by the site acreage, and did not include any additional downward adjustments. T he TPP densities shown in Table 52 were utilized when calculating residential potential in the East Valley plan area.

It is important to note that the EVSP also is establishing a Density Transfer Program (“DTP”) to enable the City to transfer densities from undeveloped or underutilized properties (i.e. sending areas) within the EVSP to developing properties (i.e. receiving areas). The program would increase the probability that the anticipated number of dwelling units in the EVSP area could actually be achieved by allowing a developing property to increase its density beyond what current zoning would permit when other properties have underdeveloped to less than the maximum density. The transfer density would be held in a Density Credit Pool until assigned to a particular development project. The EVSP DTP establishes a creative land use strategy reflective of changing needs, resources, and conditions to maintain flexible land use management and to encourage the full build-out of the East Valley area. The EVSP DTP is an optional program - and would allow property owners to re-assign or transfer units only if they wanted to. That is, if a property owner chooses to not maximize their development rights and build-out their site to its full potential, the EVSP DTP allows for the transfer or remaining and unused housing density to another, future project in the EVSP area.

Table 52: Site Capacity Estimation (EVSP)
Land Use
Designation Applicable Zoning Minimum Density
(du/ac)
Maximum Density
(du/ac)
Target Production
Point
Urban IV/V R-5-30 21 30 25
Mixed-use M-U 20 80 45
Note: Nonresidential zones of the EVSP were not considered for housing production.

Source: EVSP Draft Land-Use Scenarios
Areas Outside of the East Valley Specific Plan
RHNA sites located outside the EVSP area are not subject to a TPP, so an alternative method of determining site capacity and development likelihood was used. As noted above, project trends generally indicate that housing throughout the City is being built near the maximum allowed density, and for affordable projects, above the maximum allowed density. While recent production trends indicate that site capacity could reasonably be estimated at the maximum density allowed by zoning, Resolution No. 2023-31
Exhibit "B"
97 of 291
374
Item18.
some developments will likely be built at lower densities. Additionally, some of the identified sites may not be developed during the Sixth Cycle planning period, further necessitating a downward adjustment for the realistic capacity. Due to these considerations, the City is estimating that properties with densities of 0 to 45 du/ac will be built to 75% of their maximum allowed, while properties with densities between 46 and 100 du/ac may achieve 62.5% of the maximum allowed by the underlying regulations. Recent trends suggest that this assumption is highly conservative, and significantly underestimates the number of units that are likely to be constructed on these very high-density sites during the planning period.

Table 53: Site Capacity Estimation (Non EVSP)
Density Range (du/ac) Assumed Capacity Factor
0-45 75%
46-100 62.5%
Property Yield Calculation
The acreage of the property is multiplied by the allowed density and the yield factor to establish the likely number of units that the site could accommodate. This “estimated yield” was then rounded to the nearest integer. The number of existing units (based on 2020 Assessor data) is subtracted from the likely yield to get the number of “net new units” per parcel.

𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 𝑌𝑌𝐸𝐸𝐸𝐸𝑌𝑌𝐸𝐸 = 𝐸𝐸𝐸𝐸𝑠𝑠𝐸𝐸 (𝐸𝐸𝑎𝑎
𝑎𝑎𝐸𝐸𝐸𝐸𝑎𝑎𝐸𝐸) ∗ 𝐸𝐸𝐸𝐸𝑑𝑑𝐸𝐸
𝐸𝐸𝐸𝐸𝑑𝑑 �𝐸𝐸𝑑𝑑 𝐸𝐸𝑎𝑎� � ∗ 𝐴𝐴𝐸𝐸
𝐸𝐸𝑑𝑑𝐸𝐸𝐸𝐸𝐸𝐸 𝐶𝐶𝐸𝐸𝐶𝐶𝐸𝐸𝑎𝑎𝐸𝐸𝐸𝐸
𝑑𝑑 𝐹𝐹𝐸𝐸𝑎𝑎𝐸𝐸𝐹𝐹𝑎𝑎
𝑅𝑅𝐹𝐹𝑑𝑑𝑑𝑑𝐸𝐸
𝐸𝐸𝐸𝐸 𝑌𝑌𝐸𝐸𝐸𝐸𝑌𝑌𝐸𝐸 = 𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸
𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸 𝑌𝑌𝐸𝐸𝐸𝐸𝑌𝑌𝐸𝐸 𝑎𝑎𝐹𝐹
𝑑𝑑𝑑𝑑𝐸𝐸𝐸𝐸𝐸𝐸 𝐸𝐸𝐹𝐹 𝑑𝑑𝐸𝐸𝐸𝐸𝑎𝑎
𝐸𝐸𝐸𝐸𝐸𝐸 𝑤𝑤ℎ𝐹𝐹𝑌𝑌𝐸𝐸 𝑑𝑑𝑑𝑑𝐸𝐸𝑛𝑛𝐸𝐸𝑎𝑎
𝑁𝑁𝐸𝐸
𝐸𝐸 𝑈𝑈𝑑𝑑𝐸𝐸𝐸𝐸𝐸𝐸 = 𝑅𝑅𝐹𝐹𝑑𝑑𝑑𝑑𝐸𝐸
𝐸𝐸𝐸𝐸 𝑌𝑌𝐸𝐸𝐸𝐸𝑌𝑌𝐸𝐸 − 𝐸𝐸𝐸𝐸
𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝐸𝑑𝑑𝑎𝑎 𝑈𝑈𝑑𝑑𝐸𝐸𝐸𝐸𝐸𝐸
Density and Affordability Levels
State law (Assembly Bill 2342/Government Code 65583.2) uses allowed density as a proxy for income/affordability for the sites inventory. Depending on the size and urbanization of the jurisdiction, different default densities are presumed to support lower -income units. Escondido is classified as a “jurisdiction in a metropolitan county,” which has a default density threshold of 30 du/ac for lower - income units.

Generally, single-family homes (0-11 du/ac) are presumed to be affordable to above moderate income households, while townhomes and garden-style apartments (12-29 du/ac) are presumed to be affordable to moderate income households. Properties with densities at 30 du/ac or greater are presumed to be suitable for both low and very low income units per AB 2342. Higher -density properties are also anticipated to be able to support both moderate- and above moderate-income households. All lower-income sites identified in the sites inventory have allowed densities of 30 du/ac or greater.

Resolution No. 2023-31
Exhibit "B"
98 of 291
375
Item18.

Table 54: Affordability by Density
Income Density Range (du/ac)
Above Moderate 0-11
Moderate 12-29
Low 30+
Very Low 30+
Methodology for Identifying Sites to Accommodate the RHNA The City of Escondido has few vacant parcels suitable for residential development, particularly in areas proposed for higher-density housing. The City’s comprehensive General Plan update in 2012, along with updates to the Downtown and South Centre City Spe cific Plans, focus new residential growth into Escondido’s downtown and urbanized core, an area with excellent access to transit, services, employment, and amenities. Due to the complexity of assessing the City’s nearly 29,000 parcels for redevelopment suitability and likelihood, a comprehensive GIS -based analysis was used to identify underutilized sites across the City that are considered likely to redevelop within the Sixth Cycle. Sites that were included are generally free of environmental constraints and have existing structures and uses that will likely be replaced and redeveloped for housing. Such conditions include large parking areas, older buildings, marginally operating businesses, nonconforming uses, and a capacity for a substantial increase in dwelling units.

General Assumptions
Constraints
Properties with constraints that may preclude development, such as on-site historic structures or being on conserved lands or agricultural preserves, were removed from consideration for the sites inventory.

The City also evaluated the potential for Floodplains to act as a constraint on housing production, particularly in Downtown Escondido and the EVSP. The City currently allows the same development in its 100-Year Floodplain as is allowed in the underlying zoning. While housing projects in the floodplain may require different engineering and construction methods, recent projects have demonstrated that this was not a constraint. For example, the Quince Street Senior Housing, a 145 - unit affordable housing project, achieved a density of 100 du/ac in the floodplain. Based on the City’s standards and recent projects, no additional capacity deduction was implemented in the 100- year floodplain.

Sites within the 100-year floodway (the main channel of flowing water as opposed to the floodplain) are excluded from the sites inventory.

Major Developments and Building Permits
Any parcels that are/were part of a major development or had new commercial or residential building permits issued since 2013 were removed from consideration, as the recent construction would be presumed to be a constraint on near-term redevelopment.

Resolution No. 2023-31
Exhibit "B"
99 of 291
376
Item18.

Existing Land Use
The existing use of a property can create a significant constraint for redevelopment. The City used SANDAG Series 14 Land-Use information to determine the existing use of a property. Sites with the following existing land uses were removed from consideration for the sites inventory:
• Cemetery
• Elementary Schools
• Police/Fire Station
• Jr. College
• Jr. High School
• Dumps/Landfills
• Lakes/Reservoir/Large Pond
• Landscape Open Space (often HOA
Lots)
• Mobile Home Park
• Multi-Family Residential
• Open-Space Parks/Preserves
• Other Group Quarter Facilities
(Congregate Homes/Dorms/etc.)
• Other Transportation Features
• Other University/College
• Railroad Right of Way
• Residential Under Construction
• Road Right of Way
• School Under Construction
• Senior High School

Methods for Identifying Suitable Underutilized/Non-Vacant Sites The vast majority of the sites with General Plan land use designations and zoning for high-density residential development are in older, urbanized areas that are largely developed or used to some degree. There are very few vacant sites in such areas. The following section summarizes the three primary criteria used for identifying suitable underutilized, or non-vacant, sites. Each of the three criteria (land-to-improvement ratio, building age, and net new unit ratio) was established at a level that is adequate to qualify a site as underutilized. However, due to the very large number of potentially eligible sites, a minimum of two of the three criteria were used to identify the best sites. This resulted in a total of 888 sites with a total potential of 9,463 units. It is noted that 45% of the sites and 55% of the potential units meet all three of the criteria.

Beyond these criteria for determining underutilized sites, additional site selection criteria and factors were also considered that make the sites excellent candidates for development within the next eight years. The additional criterial include:
• Sites within ½ mile of a transit stop (92%, 8,739 units) • Sites within ¼ mile of services, employment, and community facilities (86%, 8,112 units) • Sites within a specific plan that includes high density zoning, infrastructure, programs, incentives, and plans and commitments that support housing and improved quality of life (87%, 8,208 units)
• Location within areas exhibiting redevelopment, recycling of non-vacant sites, and construction of new market rate, affordable housing, and mixed-use development (87%, 8,208 units)
• Low-moderate density lots with capacity to add new units without displacing existing units (14%, 1,365 units)
Resolution No. 2023-31
Exhibit "B"
100 of 291
377
Item18.

Land to Improvement Value Ratio
Based on County Assessor provided data, the land to improvement ratio for each parcel was calculated by dividing the assessed land value by the assessed improvement value. A high ratio (1.0 or above) illustrates that the land is more valuable than the improvements on the land, and that the site is likely appropriate for redevelopment due to the low relative value of existing structures.

Properties with land to improvement ratios above 1.0 are considered underutilized and were presumed to have improvements that would not constrain the site for the redevelopment of housing and were included in the inventory. A review of several recent projects (discussed in the Development Trends section above) showed that many properties that were recently redeveloped had land to improvement ratios above 1. While the recent history is not comprehensive, it does illustrate that using the land to improvement value ratio can identify sites that are likely to be redeveloped during the planning period. A land to improvement ratio of 1.0 or greater is a conservatively high factor. It is noted that several recent redevelopment projects included ratios below 1.0. One had a ratio of only

0.37, indicating relatively expensive building improvements. Yet, the value of the development potential permitted by the zoning and promoted by the specific plan still made a relatively expensive site viable for residential development. Furthermore, while the building structures may be valuable, given the current trends of retail and office uses, many of these properties are not generating adequate revenues from rents or business to sustain long-term operations.

In many instances, the land to improvement value of a property does not fully capture the site conditions indicating suitability for redevelopment. As noted above, a minimum of two of the three criteria were used to select the best sites. Therefore, sites with land to improvement ratios less than

1.0 were only included if both of the following conditions are met:
• Existing structures are more than 30 years old (building age); and • The assumed project yield (new net units ratio), after deductions of 37.5% for mixed-use or 25% for residential, are at least five times the number of existing units on the site.

Properties that had no residential units and land to improvement ratios less than 1.0 were included provided the structures were more than 30 years old and the net new units ratio is above 5, based on the assumption that the permitted residential density will continue to provide a strong incentive for redevelopment. These requirements are described further below.

Building Age
Building age is a strong factor in determining whether a site is underutilized or otherwise ripe for redevelopment. This is particularly true when combined with the land to improvement ratio and/or the net new unit ratio. County Assessor data was used to identify the age of structures throughout the City. Existing improvements that are at least 30 years old indicate that a site may be s uitable for redevelopment. As the natural lifespan of the building ends, the original capital investment has been recovered and maintenance costs increase dramatically. Approximately 50% of the buildings in the inventory are over 50 years old (built before 1970). Almost 70% are over 40 years old (built before 1980).

Additionally, most of the City’s recent development occurred on buildings that were built prior to 1990.

For example, the Touchstone Ivy apartments were constructed on a building built in 1986. The warehouses that were redeveloped for senior affordable housing (Quince Street Senior Homes) were constructed in the early 1960s.

Resolution No. 2023-31
Exhibit "B"
101 of 291
378
Item18.

Other existing single-family and commercial buildings at 322 S. Escondido Boulevard and 829. South Escondido Boulevard (proposed housing projects) were built from the 1920s to 1960s . Another building that is a part of the 829 S. Escondido Boulevard project was built in 1990, illustrating that even buildings constructed more recently are suitable and likely to be developed, provided that the underlying zoning allows enough capacity for profitable residential development. Only 6% of the potential units are on sites with buildings less than 30 years old. As noted previously, such sites have a net new unit ratio of 5.0 or greater and a land to improvement ratio of 1.0 or greater, which indicate that the sites are physically underutilized and underutilized relative to the zoning capacity.

Net New Units Ratio
The most important determinant of whether a site is underutilized and likely to be redeveloped is the potential return on investment as determined by the development potential of the property. One measure of this is the ratio of the potential new units divided by the existing units on the site, or the net new unit ratio. This represents the amount of development that could be added to an existing development site, or the net increase if the existing improvements were to be replaced.

In this case, the net new unit ratio was based on the assumed project yield (after deductions of 37.5% for mixed use or 25% for residential from the maximum allowed by zoning) for zones that allow more than 45 dwelling units per acre. A ratio of 1.0 (doubling existing units) to 2.0 (tripling existing units) is often adequate to entice redevelopment of smaller projects. A simple example is a single-family home on a lot that can be subdivided or developed with one new home, or replaced with a duplex, triplex or fourplex (net new factors of 1, 2 and 3, respectively). Other cities in the San Diego region found substantial evidence to support redevelopment at net new unit ratios of just 0.25 to 1.0. The 25% remaining capacity threshold was determined to be a conservative alternative to the standard assumption that sites with 15% remaining capacity are likely to be realized over a longer 20–30-year planning period. The more aggressive minimum ratio of 1.0 was based on a doubling of the number of existing units.

Due to the large number of potential sites, Escondido chose a very high and conservative net new unit ratio of 5.0 or greater to identify and select the best sites. It should be noted that the calculation of the net new unit ratio for Escondido sites was based on the assumed project yield after the 25% or

37.5% reductions from the maximum potential yield based on zoning. A factor of 5.0 is equivalent to a 6.7 or 8.0 when calculated using the maximum potential units (or remaining capacity), as is typical and used for the examples above. Therefore, the resulting Escondido minimum values are 6.7 to 32 times greater and more conservative than those used by other cities in the region.

As noted above, existing multi-family sites and condominium ownership (homeowners associations) were excluded from consideration. So, the non- vacant sites include only older si ngle-family homes and commercial sites that are underutilized and have high development potential.

Properties with no residential units (commercial, mixed-use, industrial) were also included due to high demand for residential and the potential for recycling existing commercial uses. These types of properties, including existing buildings with substantial vacancies, are underutilized in comparison to the intended and permitted intensity and density allowed by zoning. The underlying potential of these prospective new units is anticipated to act as a catalyst for housing development.

Much of the City’s recent development has occurred on underutilized commercial properties . The very high permitted densities provide a very strong profit motive to add or redevelop with new housing.

Recycling of residential sites is also occurring on single-family properties throughout the Downtown Resolution No. 2023-31
Exhibit "B"
102 of 291
379
Item18.
and Southern Centre City Specific Plans. For example, a project at 350 West 10th Street is converting two single-family homes into an 8-unit apartment building (a net new unit ratio of 3.0). The 322 S.

Escondido project proposes 180 units on a site that contains 4 single family homes and commercial building. Another project at 664 N. Fig Street proposes 15 apartments on a single-family lot. These projects, demonstrate the validity of using this ratio in combination with building ages to identify underutilized parcels that are likely to be redeveloped during the 6th Cycle. As noted above, sites with existing multi-family and condominiums were excluded from consideration. The proposed RHNA sites are similar to and in the same areas that are currently recycling both commercial and residential non- vacant sites.

Exclusion of sites with environmental or land use constraints, the use of several layers and multiple and conservative selection criteria such as the net new unit ratio of 5.0 (the equivalent of 6.7 to 8.0 due to the prior use of the 25% to 37.5% yield reductions) result in selection of sites that are expected to be developed within the next 8-year planning period.

Adjacent Parcels
Individually, some specific parcels may not be considered underutilized or likely to redevelop in the near future. However, contiguous parcels that are considered together may present a stronger redevelopment potential; these may include individual parcels that contain viable uses but serve to connect the vacant and underutilized properties. Section C above describes several projects that have been proposed or approved for small, contiguous lots in the Downtown and South Centre City areas. For this reason, some adjacent properties that may not individually meet the criteria listed above were included in the sites inventory.

Appendix B, Sites Inventory list includes improvement to land value ratios, age of structures, land use, and the number of units that could be added to a property to help demonstrate the viability of each parcel. As discussed above, each parcel that was included meets criteria indicating that it is physically underutilized (land to improvement ratio above 1.0 ) or underutilized relative to the zoning (net new unit ratio ≥ 5.0; or a structure that is at least 30 years old). These conditions provide evidence that the properties are likely to be redeveloped for housing during the planning period. All RHNA sites include at least two of these three characteristics of underutilized sites. Many include all three. The Sites Inventory list also identifies additional supporting factors (described above) that make the sites appropriate and attractive for housing development.

Infrastructure
The City of Escondido operates water and wastewater utilities throughout the City, except for a few areas that are served by Rincon del Diablo Municipal Water District. The City actively participates in regional water management and maintains active capital improvement programs to improve water and wastewater infrastructure throughout the City.

The sites selected all have access to existing water and sewer infrastructure. In some areas , the City’s existing infrastructure may need to be upgraded to accommodate the projected housing units specified in the sites inventory. The City will continue to update and evaluate infrastructure needs and include the appropriate infrastructure programs in the relevant capital improvement plan.

The City is served by San Diego Gas & Electric (“SDG&E”) and a variety of telecom providers. SDG&E service and broadband internet access are available across the City and for all sites identified in the inventory.

Resolution No. 2023-31
Exhibit "B"
103 of 291
380
Item18.

Ownership
Properties that are owned by the common interests (e.g., homeowners associations) were removed based on the “Owner Name” assessor’s data. Parcels owned by the City of Escondido, special districts, and SDG&E were also removed from consideration.9 Sites Inventory and Residential Development Potential
The City is planning to accommodate new housing primarily through infill development on non-vacant sites. Prioritizing infill and densification, particularly in the City’s Downtown and transit rich neighborhoods, will minimize sprawl and focus new development in an efficient and environmentally sensitive manner. This is consistent with and part of the 2021 Climate Action Plan strategy. Overall, the City is accommodating 94% (8,902 units) of its RHNA capacity on non-vacant sites, and 6% (561 units) on vacant sites. Of the lower-income capacity met through identified sites, only 1.4% (135 units) of the lower-income capacity is met through vacant sites.

The City also identified 653 units of lower-income housing that can be accommodated by approved projects, pending projects, and ADUs. Combined with the units located on vacant sites, the City can accommodate 25% (788 units) of its lower income RHNA (3,113 units) on sites without existing uses.

As these vacant or approved units do not exceed 50% of the lower -income RHNA, the City, based on substantial evidence, makes the required finding that the non-vacant sites are likely to be redeveloped for housing during the planning period.

Downtown Specific Plan Area
In 1992, the City identified Downtown Escondido as an area in need of concentrated revitalization efforts and adopted the Downtown Revitalization Area Specific Plan. The plan has undergone several revisions and was last updated in 2012. The 2012 amendment rezoned a majority of Escondido’s Downtown to accommodate high-density residential and mixed-uses. While some properties in downtown Escondido are reserved for commercial development, residential and mixed-use development at densities of 45 to 100 du/ac are allowed throughout most of the specific planning area.

Through the incentives and flexibility offered by the Downtown Specific Plan, the City has experienced a steady pace of redevelopment activities in the area, such as aging commercial developments, older single-family or small multifamily homes, or parking lots being recycled into higher intensity developments.

These projects are frequently built to the maximum allowable density, demonstrating the feasibility of achieving the substantial residential production envisioned by the City.

Overall, vacant and underutilized properties in the Downtown Area can accommodate 5,092 new units.

This estimate is based on the highly conservative yield adjustments (e.g., 62.5% to 75% of the maximum) shown in Table 53.

Non-Vacant Redevelopment Site Typologies
The Downtown Specific Plan area includes approximately 275 parcels and 65 consolidated non- vacant inventory sites. The Downtown area contains several subareas that each include a variety of building patterns and typologies described below. The typology of each site is identified in the sites inventory list. The list also identifies the land-to-improvement value ratios, age of structures, land use, 9 Vacant parcel 230-141-01-00 owned by the City of Escondido is included.

Resolution No. 2023-31
Exhibit "B"
104 of 291
381
Item18.
and the number of units that could be added to a property to help demonstrate the viability of each parcel. See Figure B -1 following Appendix B, Sites Inventory for examples of existing non-vacant sites exhibiting characteristics of recent multifamily redevelopment in the area. Figure B includes images of over 50 examples from the sites inventory including strip commercial, office/medical, single- family residential, industrial/warehouse, and church uses. It also includes examples of eight recent redevelopment projects on sites with similar characteristics as the inventory sites including uses, age of structures, land-to-improvement assessed value ratios, zoning, density, and development potential.

North of Escondido Creek
The area generally north of Escondido Creek and between North Escondido Boulevard and North Broadway includes about 35 parcels and eight consolidated inventory sites. Existing uses include neighborhood strip shopping centers with large parking lots, small and free-stranding arterial strip commercial buildings on small lots, a few small medical and professional office buildings, and a few light industrial buildings. Uses include medical office, auto parts, service and tire stores, grocery stores, vacant office buildings, a Goodwill donation center, fast food restaurants, and a laundromat.

This entire area is zoned for the City’s highest density residential and mixed-use at densities up to 100 dwelling units per acre. Most of the parcels in this area are contiguous and create excellent individual and consolidated development sites. This area is expected to experience significant residential and mixed-use redevelopment over the next eight years. Two recent 4- and 6-story multi- family residential communities (Alcove and Latitude 33) directly west of the main block of sites demonstrate the trend for redevelopment in the area on sites with similar characteristics.

South of Escondido Creek
The area south of Escondido Creek and West Valley Parkway includes approximately 65 parcels and 14 consolidated sites that include a mix of older strip commercial buildings, a block of auto sales, parts and repair uses, and several blocks of a mix of older small single-family homes interspersed with vacant land and parking lots. Several of office and larger buildings are vacant. The area is designated for 75 dwelling units per acre. The new Touchstone Ivy multi-family project reflects the trend toward new multifamily in the area and demonstrates the high likelihood that the proposed sites will be redeveloped within the next eight years.

West of Former Palomar Medical Center
The 9-block area immediately west of the Palomar Medical Center includes approximately 80 parcels and 16 consolidated sites. The area is characterized by small mostly one-story buildings. There are a few two-story buildings. Most are set close to the sidewalk and are adjacent to each other where parking in front of the buildings is on-street and private parking is provided behind the buildings. Some have no parking at all which limits their marketability and development potential. There are two 1 - story larger floorplate buildings on the western end of the area. Both are vacant. There are four new residential development projects including the Touchstone Ivy, Touchstone Aspire, and a mixed use project including 50 units of affordable housing. This area exhibits the same characteristics as the nearby redevelopment sites. It is ripe for redevelopment within the next eight years with high-density mixed-use development that takes advantage of the 75 dwelling units per acre permitted density and redevelopment vision of the Downtown Specific Plan.

Resolution No. 2023-31
Exhibit "B"
105 of 291
382
Item18.

Southern Downtown Specific Plan
The 15-block area that forms the southern portion of the Downtown Specific Plan is located between East 2nd Avenue and 5th Avenue and Centre City Parkway and Ivy Street. The area includes approximately 75 parcels and 22 consolidated sites. Approximately half of the sites are designated for 45 dwelling units per acre. These sites are located between Broadway and Ivy and 2nd and 5th Avenues. The buildings in this area are primarily one-story medical/professional office buildings and older single-family homes, and large parking lots. The other half of the inventory sites are zone for 75 dwelling units per acre (between 2nd and 3rd Avenues) and 100 dwelling units per acre (between Centre City Parkway and Maple Avenue) . The area includes single-family dwellings, the Escondido Lumber Yard, a one-story office complex, a used-car dealership, a vacant office building and parking lot, a mortuary, and several older, small, one -story medical office buildings. There is a larger floorplate, 2-story office building, a very large parking lot, and three single family buildings between Juniper and Ivy street near the former Palomar Medical Center that make a very attractive redevelopment site. This site and most of the other office buildings are exhibiting increased vacancies and most have for lease signs. This complex is directly south of a new multifamily project on Ivy Street. The site was occupied by one of the larger and more expensive buildings in the area – the Escondido Surgery Center was a multi -story podium building with a 2-level parking structure that covered three-quarters of the block . Redevelopment of this site demonstrates the strength and feasibility of redevelopment of even higher cost sites. The loss of the Palomar Medical Center is expected to greatly diminish the near -term and long-term market and viability for the clusters of outpatient and small medical office support services in the area. The uses in this area are expected to redevelop over the next eight years as a result of the very strong demand for residential development, the significantly increased very high-density development potential and the weakening market and demand for medical and professional office space.

Escondido Transit Center
The Escondido Transit Center and surrounding area includes 18 parcels and consolidated 4 sites.

The inventory sites include mostly one-story office buildings, and several older warehouse buildings and large parking lots. There is a 3-story office building that is also included because the very large surface parking lot makes it a very attractive large site for mixed-use infill or redevelopment. This area has been upzoned to 100 dwelling units per acre and has attracted recent redevelopment activity.

The 5-story Rowan apartment homes community was recently developed on the site of a relatively large 2-story office building. The 145-unit Quince Street affordable Senior Housing project was recently approved. The inventory sites have the same favorable characteristics as those that are recently redeveloped and are expected to be developed in the next eight years. The Transit Center is a great asset to support the high-density development but is also a prime candidate for infill development. North County Transit District proposed a concept plan for developing the site with 400+ multi-family units, retail, office, and parking. Formal plans have not been submitted. The permitted densities would support structured parking that would make large portions of the site available for truly transit-oriented residential and mixed-use.

Resolution No. 2023-31
Exhibit "B"
106 of 291
383
Item18.

South Centre City Specific Plan Area
The South Centre City Parkway Specific Plan covers a length of approximately 2.25 miles between 5th Avenue and Centre City Parkway and Verda Avenue. South Centre City is characterized by a variety of aging, underutilized, and small -scale commercial development, interspersed with older single-family residential uses. As a part of the City’s comprehensive General Plan update in 2012, four smart growth “target areas” were identified in the South Centre City region: the South Quince Street Area, South Escondido Boulevard Area, Felicita Avenue Area, and Centre City Parkway Area.

These target areas were aggregated in the 2018 South Centre City Parkway Specific Plan, which established a comprehensive planning vision for the district. The plan established many districts and subareas suitable for higher-density residential and mixed-uses. Since the adoption of the plan, the City has seen multiple residential projects from duplexes and small garden-style apartments to high- density, mixed-income projects proposed and constructed along this corridor—evidence that the recently up-zoned land has catalyzed residential development as planned.

The City identified properties within the South Centre City Parkway Specific Plan area where the conditions of existing uses are conducive to future redevelopment. Such conditions include large parking areas, older buildings, marginally operating businesses, nonconforming uses, and capacity for additional units. Overall, the properties in South Centre City Parkway Specific Plan area are projected to accommodate 931 new units.

Non-Vacant Redevelopment Site Typologies
The South Centre City Specific Plan area includes approximately 150 parcels and 39 consolidated non-vacant inventory sites. The majority (116 parcels) are zoned for 30 dwelling units per acre. The 26 parcels along 9th Avenue are zoned for 24 dwelling units per acre, the 11 inventory sites along 5th Avenue are zoned for 100 units per acre. These sites are characterized by one of the four typologies described below. The typology of each site is identified in the sites inventory list. The list also identifies the land-to-improvement value ratios, age of structures, land use, and the number of units that could be added to a property to help demonstrate the viability of each parcel. See Figure B-1 following Appendix B, Sites Inventory for examples of existing non-vacant sites exhibiting characteristics of recent multifamily redevelopment in the area.

Old Single-Family Homes in High-Density Zone
Approximately half (68 parcels and 20 consolidated sites) of the total proposed inventory in the South Center City Specific Plan area include older, small one-story single-family homes that are zoned for high-density residential. Many of the homes are nearing the end of their useful service life. The large increase in development potential and the recent examples of redevelopment for high-density residential on similar properties in the area is a very strong demonstration and incentive for redevelopment of these properties in the next eight-year period.

Small Strip Commercial Buildings
The sites inventory includes approximately 55 sites that are characterized by small strip commercial buildings. Most of the commercial buildings in the South Center City specific plan area are old, small one-story single-family homes that have been converted decades ago to small commercial shops.

Some were likely built as small commercial shops but have not been significantly improved for decades. Many are in poor condition. There is a high proportion of vacan cies. Sites in the southern portion of the district include many more vacancies and buildings that are in poor condition. Several new multi -family developments in the vicinity along Escondido Boulevard demonstrate the Resolution No. 2023-31
Exhibit "B"
107 of 291
384
Item18.
redevelopment trend and feasibility. The large increase in development potential and the recent examples of redevelopment for high-density residential on similar properties in the area is a very strong demonstration and incentive for redevelopment of these properties.

Small Medical/Professional Office Buildings/Complexes
There are about 14 sites with small one-story free-standing medical and professional or personal service office buildings in the South Center City Specific Plan. Some are converted single-family homes and are on streets that still contain older one-story single-family homes. Most are located along the southern portions of South Escondido Boulevard and are zoned for 30 units per acre. The proposed sites along 5th Avenue are near several new 3- and 4-story office and mixed-use buildings that demonstrate the redevelopment potential of these sites with very similar characteristics. The large increase in development potential of 30 to 100 units per acre and the recent examples of redevelopment for high-density residential on similar properties in the area is a very strong demonstration and incentive for redevelopment of these properties.

Automotive (Gas Stations, Repair, Sales, Storage, Car wash) There are about 14 automotive related sites that are in prime locations for residential and mixed-use redevelopment. Several of the proposed RHNA sites include small, older automotive uses including convenience stores, service stations, small repair shops, or towing/storage yards. These sites have small and generally very low value simple shell buildings. Several are located in the northern section of the district off 9th Avenue near Centre City Parkway. Permitted densities range from 24 to 100 dwelling units per acre. All are located within a few blocks of recent multi-family development projects.

The large increase in development potential and the recent examples of redevelopment for high- density residential on similar properties in the area is a very strong demonstration and incentive for redevelopment of these properties within the next eight years.

East Valley Specific Plan Area
The East Valley area of Escondido is directly east of downtown, centered on Valley Boulevard, and generally bounded by Escondido Creek to the north, Harding Street to the east, East Grand and East 2nd Street to the south, and North Hickory, South Hickory, and North Fig Street to the west. Due to previous zoning that largely precluded residential uses, existing uses consist primarily of strip commercial, big box retailers, and small medical and professional office uses. Many of the small medical and professional office buildings are former single-family homes that were converted to commercial use. The area is still frequently interspersed with older, small single-family homes.

The EVSP is a policy and regulatory document being prepared to identify the future vision, goals, and policies and establish area-specific regulations to facilitate, guide, and incentivize the fulfilment of that vision. The overall purpose of the EVSP is to guide redevelopment of the underutilized residential and commercial land of low -intensity general retail, office, restaurants, and small -scale service businesses into a new neighborhood with a mix of residential, commercial, public, and open space uses. It would accommodate increased housing density along with other transit-supportive uses and improvements.

Through the plan, the City will redesignate and rezone most of the 191-acre area (127 acres excluding rights-of-way) from the current commercial and office uses to mixed-use and high-density residential through the Mixed-Use and Urban Residential IV/V districts.

The new zoning will require that residential components be included in all redevelopments at the minimum densities illustrated in Table 52 and described below.

Resolution No. 2023-31
Exhibit "B"
108 of 291
385
Item18.

The Draft EVSP Land Use Plan shows limited and targeted areas for general commercial and mixed- use along both sides of the East Valley Parkway, and urban residential areas to the north and south of the mixed-use corridor. Two park overlay zones are proposed over the urban residential zones on the eastern half of the EVSP area. The development program includes:

1. General Commercial – approximately 7 acres and 60,000 square feet of exclusively commercial uses, including local-serving commercial, automobile service, eating/drinking establishments, entertainment facilities, retail, office, and service establishments intended for other commercial uses not suitable for residential zones.

2. Mixed-Use – approximately 70 acres with residential densities between 3 0 and 80 du/ac, averaging 45 du/ac for an estimated 4,600 units, and an estimated 700,000 square feet of retail, office, and medical office space. Multifamily residential units, appropriate along major thoroughfares, would be proximate to shopping centers and commercial (retail/entertainment, community facilities and employment office/medical office) opportunities.

3. Urban Residential IV/V – approximately 50 acres of residential and mixed -use yielding approximately 1,500 dwelling units (multifamily residential units, town homes, apartments, flats, and condominiums) between 21 and 30 du/ac and averaging 25 du/ac. This area is also projected to contain approximately 450,000 square feet of retail, office, and medical office space at 15,000 square feet/acre.

4. Park Overlay Zone – two overlay zones over portions of the Urban Residential and Mixed- Use areas are intended to yield a minimum of 10 acres of active and passive parks as well as land to protect, maintain, and enhance the community's natural resources and include detention basins and creek corridors.

Only three intersections within the plan area are required to provide commercial frontage. These are along East Valley Parkway at Ash Street, Date Street, and Fig street. Because of the minimum density requirement, properties within these two districts will recycle as residential or mixed-use.

Non-Vacant Redevelopment Site Typologies
There are just over 200 parcels and 47 non-vacant inventory consolidated sites within the East Valley Specific Plan area. They are characterized as one of the following typologies described further below – aging arterial strip commercial, and older, low-scale medical and professional office buildings. The typology of each site is identified in the sites inventory list. The list also identifies the land-to- improvement ratios, age of structures, land use, and the number of units that could be added to a property to help demonstrate the viability of each parcel. See Figure B-1 following Appendix B, Sites Inventory for examples of existing non-vacant sites exhibiting characteristics of recent multifamily redevelopment in the area.

Large and Small Arterial Strip Commercial
There are approximately 17 sites and 70 parcels located along the Valley Parkway arterial that meet the very restrictive eligible site selection criteria including parcel size, land to improvement ratio, minimum residential potential yields, and existing structures more than 30 years old.

The proposed sites east of North Ash Street include typical strip commercial centers on larger lots (five plus acres). These sites have large, underutilized parking lots between the street and older one- story buildings, and some free-standing buildings often used for banks and restaurants, with little Resolution No. 2023-31
Exhibit "B"
109 of 291
386
Item18.
evidence of renovation or refurbishment. Uses include discount stores and small local independent shops. Sites that abut the Escondido Creek appear to have less activity and vitality than other commercial sites that are not isolated from the adjacent and surrounding communities. These sites are ripe for redevelopment with the addition of infill within the underutilized parking areas or in conjunction with the replacement of one or more of the strip or free-standing buildings with residential and mixed- use buildings. The continuing decline in demand for retail space and the increasing demand and extremely strong housing market make redevelopment of these sites likely during the next eight-year planning period. These sites exhibit the characteristics of similar sites in the area that have or are currently undergoing redevelopment.

The Valley Parkway area west of North Ash Street includes considerably older (1920s to 1960s), almost exclusively small one-story individual commercial buildings and small multi -tenant buildings on small lots. Sites include individual driveways and reflect a 50-foot-wide lot pattern of lots. These small lots exhibit the characteristics of other sites consolidated for new redevelopment sites. The area includes some older single-family homes. Uses include a mix of local service uses such as nail salons, pawn shops, small local fast food, and older medical and professional offices in small stand-alone buildings. Many of the buildings are in poor condition and lack maintenance. There are few new buildings or signs of any rehabilitation, capital investment, or renovation. Many buildings are vacant.

The existing weak market and continuing decline in demand for these retail spaces and the increasing demand and extremely strong housing market make redevelopment of these sites likely during the next eight-year planning period. These sites exhibit the characteristics of similar sites in the area that have or are currently undergoing redevelopment.

Small Medical/Professional Office Buildings/Complexes
The 15-block area east of the former Palomar Medical Center includes approximately 29 sites and 100 parcels that meet the very restrictive selection criteria including parcel size, land to improvement ratio, minimum residential potential yields, and existing structures more than 30 years old. The area is characterized by older, underutilized 1-2 story medical offices and small complexes with frequent vacancies and for lease signs. Many of the buildings are converted single-family residences.

Occasional single-family homes remain within and amongst the small medical, dental, and professional offices. These uses have developed around the Palomar Medical Center which has been decommissioned and is being redeveloped as a residential community. The loss of this facility will remove a major source of business for these small offices. Vacancies and relocations have already increased and become more apparent. It is likely that many of these uses will decline and relocate over time to be nearer to other medical centers. The combined loss of the Palomar Medical center, the proposed redevelopment plan and rezoning of the East Valley Specific Plan and the extremely strong demand for housing will result in the very high likelihood that these sites will experience significant redevelopment in the next eight-year period. These sites exhibit the characteristics of similar sites in the area that have or are currently undergoing redevelopment.

Overall, the City is anticipating approximately 6,100 residential units once the planning area is built out. Recognizing that not all of the upzoned properties are underutilized or likely to develop within the planning period, only 2,185 units are being counted towards the Sixth Cycle sites inventory. However, even though this analysis supports a realistic, residential -capacity assumption for the 2021-202 9 Housing Element cycle, the City will proactively monitor housing production in the planning area and determine to the extent that the EVSP inventory can accommodate a larger portion of its share of the regional housing need by income level during future planning periods, pursuant to Government Code section 65584. Furthermore, future inventories will consider the impact of the TPP and EVSP DTP on development yields when calculating realistic development capacity.

Resolution No. 2023-31
Exhibit "B"
110 of 291
387
Item18.

General Retail and Office Trends Support More Residential and Mixed-Use Most cities have more commercial space than can be readily supported. While not limited to California, many cities have over-zoned, and in many cases overbuilt commercial space as a means of capturing sales tax revenue. The excess space has been a problem for decades resulting in vacancies, soft markets, low rents, and often physical decline of the properties . This decline in the demand for retail space has been further accelerated and exacerbated for over 10 years with the increasing popularity and market share of on-line retail sales. On-line sales and services have been expanding into areas thought impossible just a couple of years ago. This includes even the sale of cars and homes entirely on-line.

There is a strong and growing trend as a result. Many malls, big box centers, and community shopping centers are being reconfigured, reoriented, and redeveloped to include residential, entertainment, open space and recreation that increases overall population and occupancy on the properties around the clock. This provides support for the commercial uses and increases the overall utilization and profit. Many of the big box retail stores are being converted to fulfillment centers where online purchase orders are pre-packed and the customer simply picks up their goods. No shopping occurs within the spaces. Developers have recognized this trend for years. While some malls and shopping centers will remain and be upgraded, developers and investors are not planning on building new 100% commercial developments. Most are planning for only mixed-use projects. Recycling of similar properties is occurring throughout the region. Redevelopment of commercial properties do not always involve the discontinuation of existing uses. Many sites have large, underutilized surface parking lots that can be repurposed for additional infill development.

These long-term trends have been accelerated and amplified by the COVID-19 pandemic. In addition to pushing more retail sales to online, the stay-at-home quarantine and office closures have proven the feasibility and efficiency of remote working. This has shuttered many office buildings temporarily.

Many companies have gone entirely virtual and have permanently relinquished office spaces. While some recovery is expected in the office markets, most companies are expecting and planning for reduced in-office occupancy. This has and is expected to increase vacancies and exacerbate the retail/office markets that were already in decline. Together, these trends provide increased opportunity and likelihood that many of the existing commercial and office properties throughout Escondido will be converted to residential use in the near and foreseeable future.

Lower Density/ Non-Specific Plan Residential Areas
Other parts of the City can accommodate units for moderate-income and above moderate-income households. There are over 300 sites in the inventory with densities up to 24 units per acre. the vast majority (285) of these potential units are located on underutilized single-family (205), vacant and underdeveloped (72), and agricultural uses (10). About 1,281 units are anticipated for these lower - density regions of the City.

Accessory Dwelling Units
Since recent changes to state accessory dwelling unit ( “ADU”) law, Escondido has seen a large increase in the number of ADUs constructed each year. Since 2017, the City has also tracked ADU rental prices based on information provided on applications , allowing for ADUs to be projected by income for the Sixth Cycle based on the average production. The City permitted 25 ADUs in 2018 and 25 ADUs in 2019.

Resolution No. 2023-31
Exhibit "B"
111 of 291
388
Item18.

The 2018 and 2019 trends do not reflect the current interest and production rates of ADUs in Escondido. During 2020, the City approved 60 ADUs out of 74 applications. From January 1 to May 7, 2021, the City had 33 ADU applications, approved 36 ADUs, and issued building permits for 28 ADUs. Based on a linear, pro-rated trend, the City is expected to issue 80 ADU permits in 2021.

Based on the significant upward trend in ADU production since 2018 and the number of permits already issued in 2021, the City anticipates continued growth in ADU s in the Sixth planning cycle.

Based on the 2020 production and recent trends, a highly conservative production rate of 45 units per year was projected for the eight years in the Sixth Cycle, yielding a total of 360 ADUs that can be counted toward the RHNA. As the City is considering adopting other incentives to encourage and promote ADUs, including allowing ADUs on religious properties and creating pre-approved plans , it can be reasonably expected that the City would permit more than 45 ADUs per year during the Sixth Cycle. The City is also including a strong ADU production monitoring program as a Housing Element implementation action. The City will continue to evaluate ADU production throughout the planning period and implement additional programs or adjust the RHNA assumptions, as necessary.

The City surveyed the applicants for the intended use and estimated rent levels for the ADU applications. Based on this survey results, the City was able to determine the income/affordability levels of the ADUs.

Resolution No. 2023-31
Exhibit "B"
112 of 291
389
Item18.

Table 55: ADU Affordability Level (2018-2020)
Year Total ADUs
Very Low
Low
Moderate
Above
Moderate
% Very Low
% Low
% Moderate
% Above
Moderate
2018 23 4 5 14 0 17% 22% 61% 0%
2019 40 9 3 18 10 23% 8% 45% 25%
2020 741 14 13 13 44 19% 17% 17% 47%

1. Affordability percentages calculated for ADU applications. 60 ADUs were approved in 2020.

Table 56: Average ADU Affordability Level (2018-2020)
Income Category Average Production
Very Low 19.7%
Low 15.4%
Moderate 41.0%
Above Moderate 23.9%

Table 57: Estimated Sixth Cycle ADU Production
Title Units
Units per year 45
Total Units (8 Year Cycle) 360
Very Low-Income Units 71
Low Income Units 56
Moderate Income 147
Above Moderate Income 86
No Net Loss
It is recommended that the EVSP also include capacity to accommodate additional units above the RHNA requirement, pursuant to Senate Bill 166, also known as “No Net Loss.” No net loss states that cities may not reduce potential housing capacity below the remaining RHNA requirements (RHNA – units built) through the planning period. To ensure that the City maintains adequate sites through the Sixth Cycle, it is generally recommended that cities include additional units above the RHNA. Table 58 illustrates the RHNA requirement with a 10% buffer above the RHNA.

Resolution No. 2023-31
Exhibit "B"
113 of 291
390
Item18.

Table 58: No Net Loss Buffer Estimate
Above Moderate Moderate Low Very Low Totals
RHNA Allocation 4,967 1,527 3,113 9,607
10% No Net Loss Buffer 497 153 311 961
Total Required Units
(RHNA + No Net Loss Buffer) 5,464 1,680 3,424 10,568
Density Transfer Programs
The City maintains density transfer programs within the Downtown and East Valley Specific Plans.

The programs allow the transfer of residential density from properties that are not built to their maximum density or are unlikely to develop to properties with development proposals. The City maintains an active inventory of unused density "credits” that can be transferred to other properties for no charge or cost if requested by a developer. The City’s density transfer program could be used in tandem with state density bonus laws to further increase the residential capacity of a project.

The program ensures that capacity in the Downtown and East Valley will never be lost if a property is developed with fewer residential units allowed by the zoning.

Low Assumed Yields
As documented, most recent developments in the City achieve the maximum density allowed by the zoning. Despite the promising project trends, the City intentionally estimated the potential of units at

62.550% and 75% of the maximum allowed. This deduction further protects the City against net loss requirements.

Ability to Meet RHNA
Overall, the City has the ability to accommodate at least 9,463 units on vacant and underutilized sites across the City. Of that total, 8,127 units are located in zones that allow at least 30 du/ac, indicating that they may accommodate lower-income units. Additionally, 5,821 of these high-density units are located on sites or on adjacent sites with cumulative areas between 0.5 and 10 acres, indicating that they may be counted toward the lower income capacity. While these sites meet the criteria for lower -income households, the City is assuming that 2,051 above-moderate units and 3,770 lower-income units could be accommodated on these high-density, correctly sized sites.

The EVSP area is anticipated to accommodate 688 above moderate units, 221 moderate income units, and 1,276 lower-income units. Even without the EVSP, the City would have adequate sites for the lower- income RHNA units through the other two specific plans. However, the City would have a small shortfall for above moderate- and moderate-income units until the EVSP is adopted. The above-moderate shortfall is 124 units, and the moderate-income shortfall is 44 units. With the adoption of the EVSP (anticipated by the end of 2021), the City would have adequate sites across all income levels. Table 59 summarizes the City’s RHNA status.

Resolution No. 2023-31
Exhibit "B"
114 of 291
391
Item18.

Table 59: Summary of RHNA Status
Site Category Above
Moderate Moderate Low Very Low Total
RHNA 4,967 1,527 1,249 1,864 9,607
Units on Identified Sites 3,439 1,467 0 4,557 9,463
Downtown Specific Plan 1,537 740 0 2,815 5,092
South Centre Specific Plan 258 207 0 466 931
East Valley Specific Plan 688 221 0 1,276 2,185
Non-Specific Plan 956 299 0 0 1,255
Approved and Under Construction
Projects 1,357 90 155 0 1,602
Projects Undergoing Entitlement 649 0 371 0 1,020
Accessory Dwelling Units 86 147 56 71 360
Total Identified Capacity 5,531 1,704 582 4,628 12,445
Surplus/(Shortfall) without EVSP (124) (44) 821 653

Financial Resources
Affordable housing for lower and moderate income households requires the creative layering of multiple funding sources. Key funding sources available for the construction, acquisition/rehabilitation, and preservation of affordable housing include:

Community Development Block Grants
The Community Development Block Grant ( “CDBG”) program was initiated by the Housing and Community Development Act (“HCDA”) of 1974. The primary objective of the program is to develop viable urban communities by providing decent housing, a suitable living environment, and economic opportunities, principally for persons of low incomes (up to 80% AMI). CDBG funds can be used for a wide array of activities, including:
• Housing rehabilitation;
• Lead-based paint screening and abatement;
• Acquisition of buildings and land;
• Construction or rehabilitation of public facilities and infrastructure; and • Public services for low income persons and persons with special needs.

The City of Escondido is an entitlement jurisdiction for CDBG funding and receives approximately $1.8 million annually. The City uses CDBG funds to provide residential rehabilitation assistance and a variety of supportive services for lower income residents and those with special needs.

HOME Investment Partnership Program
The HOME Investment Partnership Program (“HOME”) provides federal funds for the development and rehabilitation of affordable rental and ownership housing for households with incomes not exceeding 80% of area median income. The program gives local governments the flexibility to fund a Resolution No. 2023-31
Exhibit "B"
115 of 291
392
Item18.
wide range of affordable housing activities through housing partnerships with private industry and non-profit organizations. HOME funds can be used for activities that promote affordable rental housing and homeownership by low income households.

Escondido is an entitlement jurisdiction that receives HOME funds directly from HUD. Each year, the City receives approximately $6 00,000 in HOME funds. The City uses HOME funds to support affordable housing development through Community Housing Development Corporations (CHDOs) and pursue acquisition/rehabilitation of multi-family rental housing.

Emergency Solutions Grant
The Emergency Solutions Grant program (“ESG”) provides funds for a variety of activities to address homelessness. The ESG program provides grant funding to:
• Engage homeless individuals and families living on the street; • Rapidly re-house homeless individuals and families;
• Help operate and provide essential services in emergency shelters for homeless individuals and families; and
• Prevent individuals and families from becoming homeless.

Escondido is an entitlement jurisdiction that receives ESG funds directly from HUD. Each year, the City receives approximately $160,000 in ESG funds.

SB2/LEAP Grants
In 2017, Governor Brown signed a 15-bill housing package aimed at addressing the State’s housing shortage and high housing costs. Specifically, it included the Building Homes and Jobs Act (SB 2, 2017), which establishes a $75 recording fee on real estate documents to increase the supply of affordable homes in California. Because the number of real estate transactions recorded in each county will vary from year to year, the revenues collected will fluctuate.

The first year of SB 2 funds are available as planning grants to local jurisdictions. The City of Escondido received $310,000 for planning efforts to facilitate housing production. For the second year and onward, 70% of the funding will be allocated to local governments for affordable housing purposes. A large portion of year two allocations will be distributed using the same formula used to allocate federal Community Development Block Grants ( “CDBG”). As an entitlement jurisdiction in the CDBG program, Escondido i s eligible to receive funding under the Permanent Local Housing Allocation (‘PLHA”) component of SB 2, estimated at $5,057,466 over five years. SB2 PLHA funds can be used to:
• Increase the supply of housing for households at or below 60% of AMI • Increase assistance to affordable owner-occupied workforce housing • Assist persons experiencing or at risk of homelessness • Facilitate housing affordability, particularly for lower and moderate income households • Promote projects and programs to meet the local government’s unmet share of regional housing needs allocation
Another source of funding to help local jurisdictions to update their planning documents and implement process improvements that will facilitate housing construction is the Local Early Action Resolution No. 2023-31
Exhibit "B"
116 of 291
393
Item18.

Planning (LEAP) grants. The City received $500,000 in LEAP grants in 2020. However, this is a one-time-only program.

California Community Housing Agency
On January 13, 2021, the City Council became a member of the California Community Housing Agency ( “CalCHA”). Through its Essential Middle-Income Rental Housing Program ( “Program”), CalCHA issues government bonds for the acquisition of existing market-rate apartment communities through the issuance and sale of its own governmental purpose bonds.

Administrative Capacity
Escondido collaborates with a number of nonprofit organizations to expand affordable housing opportunities for residents including:
• C ommunity HousingWorks: 16-unit 15th Avenue Coop; 36-unit Avocado Court; 13-unit Daybreak Cove; 24-unit Eucalyptus View; 200- unit Manzanita Apartments; 32-unit Orange Place Cooperative; and 8-unit Sunrise Place
• National Core: 44-unit Cobblestone Street Apartments; and 61-unit Juniper Senior Village • Urban Housing Communities: 55-unit Crossings @ Escondido; and 44-unit Crossings @ Escondido Manor.

The City will continue to work with these and other qualified non-profit affordable housing developers to create affordable housing through new construction, acquisition/rehabilitation, and preservation.

Opportunities for Energy Conservation
Sustainability is a key community goal reflected throughout the General Plan. Escondido is largely built-out with limited vacant land available for new development. Updated General Plan policies wil l guide citizens, developers, city staff, and decision-makers over the next decades to facilitate the community’s long-term vision. The plan’s smart growth principles represent a shift in focus from “how to develop vacant land” to “how to reinvest in existing neighborhoods.” Escondido’s smart growth principles preserve and enhance single-family development patterns in established neighborhoods, maintain residential densities in outlying areas to accommodate growth, and guide additional employment and residential growth toward downtown and urbanized sectors along key transportation corridors.

A land use strategy of the General Plan is to promote mixed -use developments, with the goal of integrating employment, retail, entertainment, and community amenities within close proximity to create vibrant urban areas. Successfully integrating residential, employment, entertainment, shopping, and services in a mixed-use overlay is effective in reducing reliance on the automobile as residents are able to conveniently access facilities and services.

General Plan Conservation Goals and Policies
In addition to policies contained in this Housing Element, the Land Use and Community Form Element and Resource Conservation Element contain the following policies that promote energy conservation:

Resolution No. 2023-31
Exhibit "B"
117 of 291
394
Item18.

Community Character Policy 1.8
Require development projects to locate and design buildings, construct energy and water efficient infrastructure, reduce greenhouse gas emissions, enhance community livability and economic vitality, and implement other practices contributing to sustainable resources.

Community Character Policy 1.9
Require that development in downtown, at transit stations, and other key districts accommodate a mix of land uses and configure uses to promote walkabilty, bicycling, and transit uses, reducing the need for the automobile.

Air Quality and Climate Protection Policy 7.2
Reduce regional greenhouse gas emissions through the following measures including, but not limited to:
a) Implementing land use patterns that reduce automobile dependence (compact, mixed-use, pedestrian, and transit-oriented development, etc.);
b) Reducing the number of vehicular miles traveled through implementation of Transportation Demand Management programs, jobs-housing balance, and similar techniques; c) Supporting public transportation improvements;
d) Encouraging the use of alternative modes of transportation by expanding public transit, bicycle, and pedestrian networks and facilities;
e) Participating in the development of park-and-ride facilities; f) Maintaining and updating the City’s traffic signal synchronization plan; g) Promoting local agriculture;
h) Promoting the use of drought-tolerant landscaping; and i) Encouraging the use of non-polluting alternative energy systems.

Building Code Enforcement
Building Energy Standards for Residential Development (Title 24), establishes energy budgets or maximum energy use levels. Title 24 standards supersede local regulations, and State law mandates Title 24 requirements through implementation by local jurisdictions. The City will continue strict enforcement of local and state energy regulations for new residential construction and continue providing residents with information on energy efficiency.

Resolution No. 2023-31
Exhibit "B"
118 of 291
395
Item18.

6. Housing Plan
The Housing Plan identifies the City’s housing goals, polices, and implementing programs. The overall strategy is to present a diverse and balanced array of policies that cover four overall areas of concern: construction, rehabilitation, conservation, and administration. The goals and policies of the Housing Element are organized into concise goal and policy directives.

State Housing Goals
California legislature sets the context and findings for housing goals as part of the State’s housing laws (Government Code §65580):
• The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farmworkers, is a priority of the highest order.
• The early attainment of this goal requires the cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians of all economic levels.
• The provision of housing affordable to low and moderate income households requires the cooperation of all levels of government.
• Local and State governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community.

The Legislature recognizes that in carrying out this responsibility, each local government also has the responsibility to consider economic, environmental, and fiscal factors and community goals set forth in the general plan and to cooperate with other local governments and the State in addressing regional housing needs.

City Housing Goals, Policies, and Programs
A complete list of the General Plan Goals is located in the Vision and Purpose. Specific goals and policies related to housing provided below are intended to guide development to meet present and future needs, achieve a vibrant community, and enhance the character of Escondido.

GOAL 1: Plan for quality, managed, and sustainable growth Housing Policy 1.1: Expand the stock of all housing while preserving the health, safety, and welfare of residents, and maintaining the fiscal stability of the City.

Housing Policy 1.2: H ousing projects shall fund all or a portion of public facilities and costs for providing municipal services directly related to the need created by the development. The amount must be proportional to the cost of the service or improvement to offset the impacts to public facilities, services, and operations.

Housing Policy 1.3: Pursue a balance of jobs to housing.

Housing Policy 1.4: Channel residential growth to areas where the concurrent provision of services and facilities, including schools, parks, fire and police protection, and street improvements can be assured.

Resolution No. 2023-31
Exhibit "B"
119 of 291
396
Item18.

Housing Policy 1.5: Encourage a compact, efficient urban form that conserves land and other natural and environmental resources, and that promotes transit, supports nearby commercial establishments, and takes advantage of infrastructure improvements installed to accommodate their intended intensities.

Housing Policy 1.6: Encourage creative residential developments and partnerships that result in desirable amenities and contribute to infrastructure needs.

Housing Policy 1.7: Incorporate smart growth principles in new residential subdivisions, multi-family projects, and Mixed-Use Overlay areas.

Housing Policy 1.8: Create climate safe and decent housing options by supporting more comfortable and resilient homes and buildings to proactively adapt to changing weather -related emergencies and climate hazard events.

Housing Policy 1.9: Improve affordability by promoting sustainable housing practices that incorporate ‘whole system’ approach to siting, designing, and constructing housing that is integrated into the building site, consumes less water and improves water quality, reduces the use of energy and other resources, and minimizes its impact on the surrounding environment.

Housing Policy 1.10: Prioritize the provision of water and sewer services for proposed housing developments that help address the lower income housing needs.

Housing Policy 1.11: Pursue State grants, such as the Affordable Housing and Sustainable Communities Grant and Permanent Local Housing Allocation funding to support affordable housing projects, and/or ways to incorporate a mix of affordability levels, in new projects near transit for climate resiliency.

Program 1.1: Sites Inventory and No Net Loss/Replacement Housing Monitoring Action: For the 2021-2029 Housing Element planning period, the City of Escondido has been allocated a Regional Housing Needs Assessment ( “RHNA”) of 9,607 units (1,864 very low income; 1,249 low income; 1,527 moderate income, and 4,967 above moderate income units). The City could meet a portion of its RHNA with units entitled and in the pipeline, as well as anticipated A ccessory Dwelling Units (“ADUs”).

The City will continue to support construction of new housing for homeownership and rental units on vacant and nonvacant sites identified in the sites inventory. The majority of the future residential development will occur within three specific plan areas: Downtown Specific Plan; South Centre City Specific Plan; and the new East Valley Specific Plan. Scattered sites in lower density neighborhoods also provide opportunities for some additional housing. The East Valley Specific Plan (EVSP) is anticipated to be adopted in 2022. Until the adoption of the EVSP, the City would have a shortfall in adequate sites for 124 above moderate income units and 44 moderate income units. With the adoption of the EVSP (anticipated in 2022), the City will ensure at least 36 acres will be rezoned to Urban Residential IV/IV (21 du/ac minimum), or 25 acres of Mixed -Use (30 du/ac minimum) or any combination of the two designations to fully accommodate the shortfall of 124 above moderate income units and 44 moderate income units. Specifically, these zones will permit multi-family by right (without discretionary action) and meet the requirements of Government Code 65583.2, including, but not limited to a minimum density of 20 units per acre, minimum site size to permit at least 16 units on site, and allow ownership and rental housing by right in which at least 20% of the units are affordable to lower income households.

Resolution No. 2023-31
Exhibit "B"
120 of 291
397
Item18.

To ensure that the City monitor its compliance with SB 166 (No Net Loss) and AB 1397 (Replacement Requirement), the City will develop a procedure in 2021 to track:
• Unit count and income/affordability assumed on parcels included in the sites inventory. • Actual units constructed and income/affordability when parcels are developed. • Demolition of existing residential units, especially those that have been deed restricted or occupied by lower income households.
• Net change in capacity and summary of remaining capacity in meeting remaining Regional Housing Needs Allocation (“RHNA”).

Anticipated Impact: New housing opportunities for homeownership and rental for all households.

Responsible Agency: Community Development/Planning
Financing: Departmental budget
Schedule:
• Adopt East Valley Specific Plan in 2022.
• Provide the sites inventory on City website and update the inventory at least semi-annually. • Develop procedure for monitoring No Net Loss by the end of 2022. • Amend the Zoning Code in 2022 to require replacement of existing units deed restricted or occupied by lower income households as a condition of project approval, consistent with the requirements of State Density Bonus law replacement requirements, pursuant to AB 1397.

Program 1.2: Density Transfer Programs
Action: The City maintains density transfer programs within the Downtown and East Valley Specific Plans. The programs allow the transfer of residential density from properties that are not built to their targeted density. The City maintains an active inventory of unused density "credits” that can be transferred to other properties for no charge if requested by a developer. The City’s density transfer program could be used in tandem with state density bonus laws to further increase the residential capacity of a project. The programs ensure that capacity in the Downtown and East Valley will never be lost if a property is developed with fewer residential units allowed by the zoning.

Anticipated Impact: Efficient use of land resources
Responsible Agency: Community Development/Planning
Financing: Departmental budget
Schedule:
• Establish density transfer program for East Valley Specific Plan in 2022, after adoption of the Specific Plan anticipated in 2022.
• Explore an in-lieu fee in 2022 for developing below the targeted densities (Target Production Point, or TPP).

Resolution No. 2023-31
Exhibit "B"
121 of 291
398
Item18.

Program 1.3: By-Right Approval of Projects with 20 % Affordable Units on “Reuse” Sites and Sites Rezoned
Pursuant to AB 1397 passed in 2017, the City will amend the Zoning Code to require by-right approval of housing development that includes 20% of the units as housing affordable to lower income households, on sites being used to meet the Sixth cycle RHNA that represent the following:
• “Reuse sites” previously identified in the Fourth and Fifth Cycles Housing Element; and • Sites that are to be rezoned after the April 15, 2021 statutory deadline of the Housing Element through the adoption of the East Valley Specific Plan.

Appendix B provides a listing of parcels for the City’s RHNA.

Anticipated Impacts: Facilitate housing development for lower income households Responsible Agency: Community Development/Planning
Financing: Departmental budget
Schedule: Within one year of the adoption of the Housing Element Program 1.4: City-Owned Sites
Action: The City maintains an inventory of City -owned properties. These parcels are periodically assessed for their potential redevelopment or development for residential use. The objective is to use City-ownership as an incentive for affordable housing development. To the extent feasible, the City will pursue projects that include housing for extremely low income households and those with special needs such as seniors and persons with disabilities.

Anticipated Impacts: Sites for affordable housing
Responsible Agency: Community Development/Planning and Housing Financing: Departmental budget
Schedule:
• Annually review the inventory of city-owned properties and determine if any should be made available for affordable housing development.
• Annually utilize an RFP process to solicit affordable housing proposals on properties identified for affordable housing development.
• Within one year of Housing Element adoption, identify all sites included in the Residential Lands Inventory that are City -owned and actively explore opportunities to facilitate development of such properties, subject to following the requirements of the Surplus Land Act.
• Within one year of the Housing Element adoption, review the City’s policies to comply with the Surplus Land Act and update in accordance with State law.

Program 1.5: Lot Consolidation
Action: Consolidation of small lots allows a development to utilize the land more efficiently, achieve economies of scale, and offer opportunity for improved site design and amenities. The City Resolution No. 2023-31
Exhibit "B"
122 of 291
399
Item18.
encourages the consolidation of small lots to facilitate the development of mixed-use and multi-family developments, particularly for affordable housing by:
• Maintaining an inventory of sites on the City’s website. • Assisting developers in identification of parcels with lot consolidation potential. • Continuing to utilize a ministerial process for lot consolidation unless other discretionary reviews are required as part of the project.

To ensure consolidation of small lots continues to provide a realistic avenue to utilize small sites more efficiently for residential development, the City will:
• I mplement incentives to facilitate lot consolidation by the end of 2023 , which may include reduced/waived fees, expedited process, graduated density based on consolidated lot size, flexibility in parking standards/requirements, or other feasible options. • Identify sites where potential consolidation can happen based on current site usage and ownership and update the sites inventory on the City’s website with this information.

Once incentives are implemented, the City will also monitor lot consolidation trends by conducting the following:
• No later than July 1, 2026, staff will review all ministerial lot consolidation applications for the years 2021 through 2025, to ensure incentives are adequate and appropriate to facilitate development of small lots.
• As part of this review, staff will assess:
o Whether incentives have increased lot consolidation within the City compared to the 4 years prior to 2021. In the event total numbers have not increased by 50%, the City will reassess whether to incorporate additional incentives for lot consolidation. o The median processing time of ministerial applications to determine how the process timeframe may be improved.
o Whether applications resulted in follow up development or are in the same state as when the applications were acted upon. For those that have more than one-year post approval, staff will survey those applicants to determine, if any, impediments to development.

Within six-months after review of the lot consolidation applications concludes, staff will present decision makers with recommendations to adjust/increase incentives and/or utilize alternative actions to further facilitate development on small sites.

Anticipated Impacts: Efficient use of land resources
Responsible Agency: Community Development/Planning and Housing Financing: Departmental budget
Schedule:
• Develop incentives to facilitate lot consolidation no later than the end of 2023. • Monitor the trend of lot consolidation in 2024 to ensure incentives are adequate and appropriate to facilitate development of small lots, and adjust incentives or utilize other mechanisms as appropriate.

Resolution No. 2023-31
Exhibit "B"
123 of 291
400
Item18.

Program 1.6: Density Bonus
Action: City staff completed an amendment to the Zoning Code in 2020 to modify Density Bonus provisions to comply with State law at the time. The State has since passed a bill that made further changes to the State Density Bonus law. AB 2345 (Increase Maximum Allowable Density) - Revised the requirements for receiving concessions and incentives, and the maximum density bonus provided.

Anticipated Impacts: Facilitate affordable housing development Responsible Agency: Community Development/Planning
Financing: Departmental budget
Schedule:
• In 2022, the City will review and as necessary amend its Zoning Ordinance to ensure compliance with State law.

Program 1.7: Removal of Constraints to Development
Action: The City will facilitate development by removing potential constraints to development.

Ground-Floor Commercial Uses Only: Portions of the Downtown Specific Plan have nonresidential zones where residential densities are permitted or allowed. However, the zoning requires ground floor uses 1) in a storefront location are limited to retail -serving uses only; or 2) residential uses are permitted only above or behind a primary use. However, it may be difficult to market and develop a property with these blanket ground floor commercial requirements because there is a finite economic market available to support providing additional commercial services. Mixed -use thrives when it is focused in a compact area, not over lengthy corridors, as is currently mandated in these specific plans. For mixed-use projects, the City will amend zoning regulations to require ground floor commercial uses only at key locations or preference areas based on context or planning objectives rather than as a blanket requirement to ensure future projects are feasible and the desired community character is preserved. Key locations will be determined by City Council.

Design Review Findings for Residential Projects: The City requires design review approval for most proposed developments. Unless exempt, residential projects are reviewed for design quality.

However, the City does not have a set of design guidelines that involves no personal or subjective judgement by the City or its staff. In response to concerns that such a process could pose a constraint to housing, the City will evaluate its design review process for its potential to be subjectively applied to deny a residential development. As noted in the Constraints Analysis, there is no history that a residential project was denied solely on design review. Regardless, the City will develop a set of uniformly verifiable design criterion for new residential projects. New residential projects would need to meet or satisfy three findings, namely, that a project: 1) is consistent with the General Plan, a Specific Plan or the Zoning Code/Municipal Code; 2) is substantially consistent with the Design Review Guidelines; and 3) would not adversely affect the health, safety, or general welfare of the community. As such, after program implementation the City would have uniformly verifiable design criterion available and knowledgeable by the development applicant and the public official prior to design review submittal.

Resolution No. 2023-31
Exhibit "B"
124 of 291
401
Item18.

Streamlined Review (SB 35): The City will establish a streamlined, ministerial review process for qualifying multi-family residential projects consistent with SB 35.

Water and Sewer Priority (SB 1087): Consistent with State law, the City will establish a wri tten procedure to provide affordable housing with priority for water and sewer services.

Anticipated Impacts: Facilitate housing development
Responsible Agency: Community Development/Planning and Utilities Financing: Departmental budget, SB 2/LEAP Planning Grants Schedule:
• In 2021-2022, the City will review and amend its Zoning Code to remove constraints to development: relating to the requirement of ground floor retail in specific mixed-use districts; establish objective design criteria; establish a procedure to process qualifying projects under SB 35; and establish a written procedure to provide affordable housing with priority for water and sewer services.

Program 1.8: Monitoring of Growth Management Measure
Action: Periodically monitor and evaluate Proposition S for its impacts on the cost, supply and timing of housing, including seeking input from residential developers and affordable housing stakeholders in reviewing the effects of Proposition S. The review will analyze the ability to accommodate the City's RHNA, constraints on the supply and affordability of housing. Based on the outcomes of the evaluation and consideration of stakeholder input, the City will establish appropriate action to mitigate the impacts, including conducting a series of workshops/discussions to educate the community regarding State law requirements and the need for a balanced community.

Anticipated Impacts: Increased public awareness of the City’s housing needs and obligations under State law
Responsible Agency: Community Development/Planning
Financing: Departmental budget
Schedule:
• Monitor the City’s progress toward the RHNA and review Proposition S as a potential constraint annually.
• Prior to the 7
th cycle housing element update, the City will conduct an assessment to determine whether Proposition S is adversely impacting housing production and fair housing within the City.

Resolution No. 2023-31
Exhibit "B"
125 of 291
402
Item18.

GOAL 2: Provide a range of housing opportunities for all income groups and households with special needs
Housing Policy 2.1: Plan for adequate development potential to accommodate the regional share of housing for all income groups and promote equal access to resources and amenities.

Housing Policy 2.2: Encourage new development to provide a range of housing by type, size, location, price, and tenure to provide a greater array of housing types.

Housing Policy 2.3: Increase homeownership in the City through education, availability, and affordability.

Housing Policy 2.4: Apply criteria demonstrating appropriateness for converting mobile home parks to ownership or alternative uses.

Housing Policy 2.5: Work to eliminate all forms of housing discrimination.

Program 2.1: Accessory Dwelling Units
Action: Escondido’s Zoning Code permits ADUs in all residential and mixed-us e zones where a residential unit already exists. Accessory dwelling units must also comply with the development standards of the underlying zone, except where precluded by State law. Additionally, the zoning code has a provision that states that the section “shall be interpreted liberally in favor of accessory dwelling unit construction,” which further removes constraints on ADU production in case of ambiguities in the standards.

Anticipated Impacts: Additional housing opportunities for lower and moderate income households Responsible Agency: Community Development/Planning
Financing: Departmental budget, LEAP grant
Schedule:
• Continue to promote ADU as an affordable housing and income source for property owners and provide ADU resources on the City website, with the goal of facilitating 360 ADUs over eight years.
• In 2022, review the ADU ordinance for compliance with State law, including objective design standard requirements and amend the ordinance as necessary and appropriate. • Amend the ADU ordinance in 2022 to allow ADUs on churches and places of worship, and other premises with social organizations as the principal land use. The ADU ordinance modification would consider the following:
o Allow ing an ADU up to 1,000 square feet to be built (and follow other similar standards) on the same property as a church, place of worship or other social organizations , regardless of the zoning for the property.
o Potentially allowing more than one ADU to be built on site. o Imposing deed restrictions on the ADUs.
• Continue to offer the City’s incentives to facilitate ADU development:
o Removed parking requirement; and
Resolution No. 2023-31
Exhibit "B"
126 of 291
403
Item18.
o Removed owner-occupancy requirement beyond the State-established sunset year of 2025.
• Develop eight to nine pre-approved ADU floor and architectural plans by 2022. • Monitor the trend of ADU construction annually, including affordability, in the City through the Housing Element Annual Progress Reports. If trends indicate a potential shortfall in meeting the estimated 360 ADUs, or by affordability, strengthen the City’s efforts to incentivize ADU construction and reassess and revise the City’s overall sites strategies for the RHNA within six months through adjusting ADU capacity assumptions consistent with actual permitted units, identifying additional sites to increase the City’s No Net Loss Buffer to the extent necessary to fully accommodate the RHNA (see also Program 1.1 for monitoring of no net loss) and rezoning if necessary.
o In the event ADU trends fall short of projections detailed, as determined through the annual housing element review process , staff will research and present to decision makers the framework for an ADU density bonus ordinance, which would allow for an additional ADU on a qualifying lot if the bonus unit is restricted for affordable housing purposes.

Program 2.2: First-Time Homebuyer Assistance
Action: The biggest hurdle faced by first-time homebuyers is usually coming up with enough money for the closing costs and down payment. The City ’s Homebuyer Entry Loan Program ( “HELP”) provides Eligible homebuyers a low-interest loan limited to five percent of the purchase price that can be used toward the down payment and/or for closing costs. Eligible homebuyers must provide an additional one percent of the purchase price toward closing costs and/or down payment. Affordability restrictions of 10 years will apply to the property. The property may not be rented out while the City loan is outstanding. Repayment of the City’s loan is deferred until sale, transfer, refinance, additional liens to the property, or no longer live in the home as principal residence.

Anticipated Impacts: Additional housing opportunities for lower income households Responsible Agency: Community Development/Housing
Financing: HOME
Schedule:
• Assist one household annually with HELP (for eight households over the Housing Element planning period).
• Beginning in 2022, explore funding availability annually and pursue additional funding to expand the program scope and eligible households.

Program 2.3: Essential Middle Income Rental Housing Program Action: On January 13, 2021, the City Council became a member of the California Community Housing Agency (“CalCHA ”). Through its Essential Middle-Income Rental Housing Program (“Program”), CalCHA issues government bonds for the acquisition of existing market-rate apartment communities through the issuance and sale of its own governmental purpose bonds. As a governmental entity, CalCHA is granted a 100% property tax exemption for each property it acquires.

These complexes are then converted to rent-restricted units for Low -Income, Median-Income, and Moderate-Income households earning no more than 120% of AMI. Under the Program, no existing Resolution No. 2023-31
Exhibit "B"
127 of 291
404
Item18.
tenants are displaced. Rents on affordable units created through this Program would be capped at a maximum of 35% of the applicable percentage of AMI, and annually rent increase percentages are also capped at a maximum of four percent, which is well below the limits allowed with AB1482. All new tenants would need to income-qualify.

Anticipated Impacts: Additional housing opportunities for lower and moderate-income households Responsible Agency: Community Development/Housing
Financing: Government bonds
Schedule:
• Identify rental properties for potential acquisition and conversion to affordable housing under the CalCHA program.

Program 2.4: Housing Choice Vouchers (HCV)
Action: This program ensures that households earning less than 50% of the Area Median Income would spend less than 30% of income for rent. This program is administered by the San Diego County Housing Authority on behalf of the City via a participation agreement.

Anticipated Impacts: Rental Assistance for extremely low /very low income households – 1,0 00 households with Housing Choice Vouchers; 30 senior/disabled households for rent subsidies Responsible Agencies: Housing Authority of the County of San Diego (“HACSD”) Financing: HUD Section 8 Vouchers
Schedule:
• Continue to provide information on and refer eligible households to the Housing Choice Voucher.
• Annually assist about 30 very low income households with rent subsidies at apartment complexes and mobile home parks.
• Continue to market programs on City website and at public counters.

Program 2.5: Mobile Home Park Conversion
Action: The City has adopted a procedure by ordinance to assist occupants involved in the conversion of mobile home parks to resident ownership or alternative uses.

Anticipated Impacts: Housing stabilization and home ownership opportunities for lower and moderate income households
Responsible Agency: Community Development/Planning and Housing Financing: Departmental budget
Schedule:
• Annually promote the option of mobile home park conversion to mobile home park tenants. • As needed, provide technical assistance to mobile home park tenants and assist in the application for funding from HCD to pursue mobile home park conversion to resident ownership.

Resolution No. 2023-31
Exhibit "B"
128 of 291
405
Item18.

Program 2.6: Mobile Home Rent Review
Action: The City passed, by initiative, an ordinance to review proposed increases in rents in mobile home parks. The Rent Review Board considers such requests with the objective of maintaining affordability of the units.

Anticipated Impacts: Stabilized rents for mobile home residents, many of whom are lower income Responsible Agencies: Community Development/Housing; Rent Review Board Financing: Departmental budget
Schedule: Ongoing
Program 2.7: Special Needs Housing
Action: The City will review and revise the Zoning Code to address the provision of special needs housing.

Transitional and Supportive Housing: SB 745 (2014) specifies that transitional housing and supportive housing should be considered a residential use of property, and subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. Furthermore, pursuant to AB 2162, supportive housing meeting certain criteria must be permitted by right where residential uses are permitted, including mixed -use and nonresidential zones. The City may not impose minimum parking requirements on projects located within a half mile from transit. Escondido’s Zoning Code does not permit mixed-use development outside of specific plan areas; these plans do not explicitly identify transitional and supportive housing as separate from residential uses. The City will review SB 745 and AB 2162 and revise the Zoning Code as necessary to ensure compliance.

Emergency Shelters: The City established an Emergency Shelter Overlay where emergency shelter is a permitted use by right in M-1 and M-2 zones, consistent with SB 2 (2007). In 2020 the City also amended the ES Overlay to establish parking standards based on staffing level plus two parking spaces. AB 139 allows the parking standards to be set solely based on staffing level. Furthermore, the Overlay establishes a separation requirement of at least 300 feet. This requirement is not consistent with SB 2, which allows a separation requirement from another shelter at a maximum separation of 300 feet. The City will amend the Zoning Code to revise the separation requirement and parking standard consistent with State law.

Employee Housing: Pursuant to the State Employee Housing Act (Section 17000 of the Health and Safety Code), employee housing for agricultural workers consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single-family or household is permitted by right in an agricultural land use designation. For properties that permit agricultural uses by right, a local jurisdiction may not treat employee housing that meets the above criteria any differently than an agricultural use. Furthermore, any employee housing providing accommodations for six or fewer employees shall be deemed a sin gle-family structure within a residential land use designation, according to the Employee Housing Act. Employee housing for six or fewer persons is permitted wherever a single-family residence is permitted. Currently the Zoning Code does not address these requirements explicitly.

Reasonable Accommodation for Persons with Disabilities: The City grants requests for reasonable accommodation if specific findings can be made. The finding related to compatibility with surrounding uses may be considered subjective and therefore a constraint to housing for persons Resolution No. 2023-31
Exhibit "B"
129 of 291
406
Item18.
with disabilities. The City will amend the Zoning Code to review and revise the findings for reasonable accommodation.

Residential Care Facilities for Seven or More Persons: These uses are conditionally permitted in residential zones. This process may be considered a constraint to housing for persons with disabilities.

Manufactured Homes: The City’s Zoning Code permits manufactured homes in single-family residential zones only, not in all zones that permit single-family homes. Furthermore, modern construction methods have also expanded to produce manufactured multi -family housing. The Ci ty will amend the Zoning Code to permit manufacture housing meeting the California Building Code standards in zones where residential uses are permitted.

Anticipated Impacts: Increased housing opportunities for households with special needs Responsible Agency: Community Development/Planning
Financing: Departmental budget
Schedule:
• Review and revise the Zoning Code as necessary in 2022 to remove constraints to special needs housing, specifically to:
o Comply with SB 745 and AB 2162 for transitional and supportive housing. o Comply with SB 2 separation requirement.
o Comply with Employee Housing Act.
o Ensure findings for reasonable accommodation requests are objective. o Permit residential care facilities for seven or more persons as similar uses in the same zone.
o Permit manufactured housing meeting building code standards in zones where residential uses are permitted.

Program 2.8: Affordable Housing Development
Action: The City will continue to pursue a variety of funding sources to support the construction, acquisition/rehabilitation, and preservation of affordable housing in the community, especially funding opportunities that benefit extremely low income households and those with special needs (including elderly, disabled/developmentally disabled, homeless/at-risk homeless, and farmworkers). Funding sources may include federal, state, local, and other private housing programs, including but not limited to:
• Low Income Housing Tax Credits (“LIHTC”)
• CalCHA bonds
• California Housing Finance Agency
• CalHome
• SB2 Permanent Local Housing Allocation
• HOME Investment Partnership Program
Resolution No. 2023-31
Exhibit "B"
130 of 291
407
Item18.
• Recycled RDA Funds
The City will facilitate affordable housing development for lower income (including extremely low income) and special needs housing by:
• Promoting the use of density bonus (Program 1.6);
• Providing technical assistance, pre-application consultation, and expedited review; • Providing financial assistance, as funding permits; and/or • Leveraging with City-owned sites (Program 1.4).

Anticipated Impacts: Acquisition, rehabilitation, preservation, or construction of affordable housing for lower and moderate income households.

Responsible Agency: Community Development/Housing
Financing: Departmental budget
Schedule:
• At least once a year explore funding availability under various programs and pursue funding if appropriate, with the goal of facilitating the development of 570 lower income units over eight years.
• Annually conduct outreach to developers for affordable housing opportunities.

Program 2.9: Inclusionary Housing Assessment
Action: The City will assess all San Diego County jurisdictions to determine whether they are implementing an inclusionary housing ordinance (IHO) and provide a comparative analysis of those with IHOs to the City’s Housing Subcommittee for review. City staff will conduct research to provide the Housing Subcommittee with information on other inclusionary mechanisms (other than onsite capture of affordable units) for potential application within the City. In addition to the compilation of research for presentation to and review by the City’s Housing Subcommittee, annually beginning in 2023, through the 2021 -2029 planning period, the City will assess the number of affordable units processed for development within the sixth cycle thus far. In the event approved, submitted, and/or constructed affordable units are not numerically on track with projected affordable units based on two consecutive years of data, the City will undertake a subsequent Residential Sector Feasibility Study to determine whether market conditions have changed and would support an inclusionary mechanism based on an on-site affordable housing obligation.

The findings of the subsequent Residential Feasibility Study will be presented to the City Council. In the event the City Council adopts an inclusionary mechanism, other than an on-site affordable housing obligation, prior to a subsequent Residential Sector Feasibility Study, the subsequent Residential Sector Feasibility Study will still occur as described to determine whether onsite capture is feasible.

Alternative inclusionary mechanisms to be researched and presented to the City’s Housing Subcommittee meeting will include, but are not limited to:
• Citywide inclusionary housing in-lieu fee;
• Land value recapture;
• Inclusionary overlay zones;
Resolution No. 2023-31
Exhibit "B"
131 of 291
408
Item18.

Anticipated Impacts: Education of City Officials and general public on inclusionary housing mechanisms; potential adoption on an inclusionary housing ordinance.

Responsible Agency: Community Development
Financing: Departmental budget, grant funding, unknown
Schedule:
• By the June 1, 2022, staff will present the City’s Housing Subcommittee with a list of all San Diego County jurisdictions that details whether they maintain an adopted inclusionary housing ordinance, and the extent of such ordinance.
• By June 1, 2022, staff will provide the City’s Housing Subcommittee with research on alternative inclusionary housing mechanisms not evaluated within the Residential Feasibility Sector Study (2021).
• Beginning January 1, 2023, staff will assess the number of affordable units processed annually for development since the start of the sixth cycle planning period. In the event two consecutive annual reviews show that processing of affordable units is not on track to meet projected goals, a sector feasibility study will occur to reassess an affordable housing obligation.

In the event two consecutive annual reviews do not trigger the need for a sector feasibility study, then the following will occur:
o By April 15, 2025 (mid-cycle) the number of affordable units processed for development is less than half of the projected value anticipated in this document, staff will conduct an updated Residential Feasibility Sector Study to reevaluate the economic feasibility for the City to adopt an on-site affordable housing obligation. • If no direction is provided by City officials on the threshold values, the future study will reassess based on what was assessed under the 2021 Residential Feasibility Sector Study.

Program 2.10: SB 9 Ordinance
Action: As of January 1, 2022, Senate Bill 9 (SB 9) allows an owner to subdivide an existing single- family residential lot and build two homes or create a duplex on each lot. The City will create and adopt a specific ordinance for the purposes of complying with and implementing SB 9 citywide.

Anticipated Impacts: Increase housing opportunities and densities throughout the City’s low density residential zones.

Responsible Agency: Community Development and Engineering Financing: Departmental budget
Schedule:
• By June 1, 2022, the City will amend Chapters 32 (Subdivisions) and 33 (Zoning) of the City’s Municipal Code for compliance with SB 9.
• Beginning in 2023, monitor the trend of SB 9 development annually, including affordability, in the City through the Housing Element Annual Progress Reports. City staff will assess the following metrics associated with the citywide SB 9 ordinance:

Resolution No. 2023-31
Exhibit "B"
132 of 291
409
Item18.
o Where the majority of SB 9 subdivisions are occurring within the City (through spatial analysis)
o The number and type of development (i.e., number of units developed per lot and unit type)
o Whether the owner of record at the time of development retained a property developed under SB 9 past the State’s 3-year requirement (note: this metric will not be available for the first 3 years of monitoring).
o An estimate of affordability level of developed units resulting from SB 9 applications based on information provided by the property owner.

GOAL 3: Enhance the quality of the city’s housing stock and preserve the integrity of neighborhood character
Housing Policy 3.1: Maintain and enhance the existing housing stock as a source of low - and moderate-cost housing and as a conservation measure.

Housing Policy 3.2: Work to eliminate substandard housing through continued enforcement of the Health and Safety Code and the provision of programs which facilitate the maintenance and rehabilitation of housing.

Housing Policy 3.3: Utilize code enforcement measures and incentive programs as necessary to ensure that building and safety regulations are met and to promote property maintenance.

Program 3.1: Housing Rehabilitation
Action: Maintaining and improving the City‘s housing stock is an important goal of the City‘s overall affordable housing strategy. With limited local funding, the City pursued CalHOME funds to implement an owner-occupied rehabilitation program for single-family and mobile homes. This program has expired. The City continues to explore funding availability under various programs and to pursue funding, if appropriate.

The City also uses HOME and recycled RDA funds to work with developers to rehabilitate multi-family rental housing affordable to low-income households. The City will prioritize funding for rental housing that benefits extremely low income households and those with special needs, such as the elderly and disabled (including the developmentally disabled).

Anticipated Impact: Improved housing conditions for lower income households Responsible Agency: Community Development/Housing
Financing: HOME and Recycled RDA funds
Schedule:
• Rehabilitate four rental units annually (32 units over eight years). • Pursue additional funding to reinstate the owner-occupied rehabilitation program and expand the rental rehabilitation program, including an acquisition/rehabilitation component.

Resolution No. 2023-31
Exhibit "B"
133 of 291
410
Item18.

Program 3.2: Focus on Neighborhoods
Action: Through various local and State funds, the City makes funds and other resources available for the improvement of neighborhoods. Through proactive code compliance, housing rehabilitation, and capital improvements, the City targets at improving the quality of life one neighborhood at a time.

In addition, land use policies or ordinances are reviewed to explore means of providing community revitalization.

Anticipated Impacts: A place-based strategy for neighborhood improvements and the opportunity for significant community impact both in physical improvement and improvement in quality of life for neighborhood residents.

Responsible Agency: Community Development/Housing
Financing: CDBG; General Fund
Schedule:
• Allocate funding for neighborhood services and improvements through the CDBG Annual Action Plan process.
• Prioritize neighborhood focus in PINs, Environmental Justice Communities, Census Tracts 202.13 and 202.14, and any other areas with a concentration of lower -income households while ensuring anti -displacement measures are implemented to reduce or eliminate the potential for displacement and gentrification.
o U tilize CDBG funds for the purpose of tenant rental assistance to a minimum of 50 families and 100 unique individuals annually through the planning period to reduce displacement within priority neighborhoods.
• Implement General Plan policies from the Mobility and Infrastructure, and Community Health and Services Elements surrounding safe routes to schools programming (Pedestrian Network Policy 3.9), and pursue agreements with Escondido school districts to enable city residents to joint use school facilities for recreational purposes (Parks and Recreation Policy 2.12). o Complete construction of, at minimum , four projects that ensure Safe Routes to Schools during the planning period, such as infill of missing sidewalks, bike lanes, and modification to traffic signals.
o Complete, at minimum, one shared use agreement with the Escondido school districts during the planning period.

Escondido City CouncilMarch 22, 2023

Escondido City Council
March 22, 2023