Fremont City Council Meeting: 12/20/22 07:00 PM
3300 Capitol Avenue Div/Dept: Housing
Fremont, CA 94538 Category: Code Adoptions & Amendments
SCHEDULED
Sponsors:
COUNCIL STAFF REPORT (ID # 4712) DOC ID: 4712
Updated: 12/15/2022 4:03 PM by Alberto Quintanilla Page 1 ADOPTION OF LIVE / WORK PREFERENCE POLICY - CITYWIDE - Public Hearing (Published Notice) To Consider the Planning Commission’s Recommendation to Adopt an Ordinance Amending The City’s Affordable Housing Ordinance (Chapter
18.155 of the Fremont Municipal Code) To Include A Live/ Work Preference Policy For City Regulated Affordable Housing Developments, And To Consider A Finding That No Further Environmental Review is Required Pursuant To The California Environmental Quality Act (CEQA), Per, Without Limitation, Each As A Separate And Independent Basis, CEQA Guidelines Sections 15378 and 15061.
Contact Persons:
Name: Lucia Hughes Dan Schoenholz
Title: Housing Manager Community Development Director
Div/Dept: Housing Community Development
Phone: 510-494-4506 510-494-4438
E-Mail: [email protected] [email protected]
Executive Summary: The City’s longstanding practice is to require that affordable housing projects receiving City funding and/or developed pursuant to the City’s Affordable Housing Ordinance (Fremont Municipal Code (FMC) Chapter 18.155) provide a local live/work priority preference to applicants for units. This practice is based on City Council direction to ensure that affordable developments serve those living and/or working in Fremont to the maximum extent allowed by law. To-date, staff has included the live/work requirement in announcements of the availability of City funding for affordable housing. In order to strengthen the requirement and to ensure that it is transparent to all stakeholders, staff recommends that the requirement be integrated into the Affordable Housing Ordinance and apply to any projects subject to an Affordable Housing Agreement with the City. The Planning Commission voted unanimously on November 17, 2022 to recommend that Council adopt the proposed Zoning Text Amendment.
BACKGROUND: The purpose of the local live/work preference policy for affordable housing units is to remedy or mitigate the displacement and gentrification impacts that may result from development activities and increasing job opportunities in the City. The local resident preference is designed to increase the probability that current residents can remain in the community in the face of increasing market rate rents and housing prices and loss of affordable units due to the expiration of covenants restricting rents. The local worker preference for affordable housing units is to maximize the effect of an improved jobs to housing ratio by increasing local housing opportunities for local employees.
DISCUSSION/ANALYSIS: The City commissioned the preparation of the City of Fremont Residential Displacement Study Report, dated June 10, 2021. The report demonstrated that (i) the City of Fremont region has experienced and is at risk for experiencing continued significant displacement of lower-income households; (ii) a City of Fremont live/work preference is necessary to prevent additional displacement of lower-income households; (iii) a Fremont preference will not result in limits to access to housing by any in dividual protected class; and, (iv) the lower-income population that will be eligible for residency in Council Staff Report (ID # 4712) Meeting of December 20, 2022 Updated: 12/15/2022 4:03 PM by Alberto Quintanilla Page 2 affordable housing developments is more racially and ethnically diverse than the general population in the area.
As noted in the Housing Element of the City’s General Plan, adopted on December 2, 2014, “the ability for lower wage workers to live and work in the same city has become increasingly difficult.” Local workers that cannot access affordable housing in Fremont face longer, more costly commutes and reduced access to public transit. This can mean more sedentary time commuting and less time for physical activity, community engagement, and families. Additionally, the increased distance between affordable housing and job opportunities contributes to traffic congestion and greenhouse gas emissions.
Based upon these findings, and in continuation of the longstanding practice of providing a live/work preference at City-funded affordable housing projects, staff recommends incorporating the following into the Affordable Housing Ordinance:
Prioritization:
The following priorities should be used to evaluate applicants for affordable ownership or rental opportunities:
First Priority: Live or Work in the City of Fremont: Priority is given to eligible households with at least one member who lives or works in the City of Fremont.
Projects Subject to Live/Work Preference:
The priorities listed above are to be applied in conformance with the provisions of this policy for the following rental and ownership projects:
a. Projects receiving a financial subsidy from the City’s Affordable Housing Fund, Low and Moderate Income Housing Asset Fund, and housing funds from Federal and/or State agencies passed through to the City to the extent permitted by law. b. Housing units required as part of an Affordable Housing Agreement with the City, including, but not limited to, the City's Affordable Housing Ordinance, a Development Agreement or Density Bonus Agreement.
Applicants Considered to Live or Work in Fremont:
An applicant will be determined to live within the city if the applicant resides at a residential address physically located within the current incorporated area of Fremont and where it is the household’s place of residence. A homeless applicant will be determined to live w ithin the City of Fremont if the applicant has a nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation, or if the applicant has a nighttime residence that is a supervised public or privately operated shelter, congregate shelter, transitional housing, or temporary care facility/institution in the City of Fremont.
An applicant will be determined to work within the City of Fremont if the applicant’s source of annual income and employment is based in Fremont and if the applicant works at least 20 hours or more per week within the Fremont city limits. Employment must be by a Fremont employer that pays business tax in Fremont , at a work site in Fremont, or through operation of a Fremont-based business that pays business tax in Fremont .
Council Staff Report (ID # 4712) Meeting of December 20, 2022 Updated: 12/15/2022 4:03 PM by Alberto Quintanilla Page 3 PLANNING COMMISSION MEETING: Staff presented the proposed changes to the ordinance to the Planning Commission at a special meeting on November 17, 2022. One public comment was received via e-mail prior to the meeting in support of the changes. The Planning Commission unanimously voted to recommend Council approval of the Zoning Text Amendment proposed by staff.
GENERAL PLAN CONSISTENCY: The proposed amendments would be consistent with the General Plan and the following policies in the Housing and Land Use Elements:
HOUSING ELEMENT POLICY 2.02: To reduce transportation costs and encourage diverse housing stock, emphasize walkable, connected neighborhoods with multiple land uses and housing types, rather than self-contained residential subdivisions with single housing types.
LAND USE ELEMENT POLICY 2-1.2: A Complete City Plan and develop Fremont’s available land supply in a way that achieves a balance between jobs and housing, matches future jobs to the capabilities of the local workforce, and provides an array of shopping choices, recreational choices, and entertainment and cultural facilities, thereby reducing the need for residents to travel outside the City.
Analysis: The proposed amendments would increase local housing opportunities for local residents and encourage a more balanced jobs to housing ratio.
FINDINGS FOR APPROVAL: In accordance with FMC Chapter 18.225, amendments to the Zoning Ordinance must be heard by both the Planning Commission and City Council. The City Council must make the following findings listed in FMC Section 18.225.050:
1. The proposed amendment is consistent with the General Plan and, where the amendment is to the text of the General Plan, it is consistent with the other policies and chapters.
Analysis: The proposed amendments would be consistent with the General Plan Land Use and Housing Elements, as enumerated in the General Plan Conformance section of the staff report.
2. The proposed amendment furthers the public interest, convenience, and general welfare of the city.
Analysis: The proposed amendments would further the public interest, convenience and general welfare of the City by encouraging a more balanced jobs to housing ratio, thereby reducing the need for residents to travel outside of the city for work.
FISCAL IMPACT: No fiscal impact
ENVIRONMENTAL REVIEW: The proposed amendments are exempt from the requirements of the California Environmental Quality Act (CEQA) per, without limitation, each as a separate and independent basis, (1) CEQA Guidelines Section 15378(b), as an administrative and/or fiscal activity that does not involve commitment to a specific project that will result in any significant physical impact on the environment); and (2) CEQA Guidelines Section 15061(b)(3) in that it can be seen with certainty that there is no Council Staff Report (ID # 4712) Meeting of December 20, 2022 Updated: 12/15/2022 4:03 PM by Alberto Quintanilla Page 4 possibility that the amendments will have the potential for causing a significant effect on the environment.
ATTACHMENTS:
• Draft Ordinance Live-Work Preference Policy
• Exh A to Draft Ordinance Live-Work Preference Policy
• Informational Item 1 - Fremont Residential Displacement Study • Informational Item 2 - Public Communications
RECOMMENDATIONS:
1. Hold public hearing.
2. Find that the amendments are exempt from the requirements of the California Environmental Quality Act (CEQA), per, without limitation, each on a separate and independent basis, (1) CEQA Guidelines Section 15378(b), as an administrative and/or fiscal activity that does not involve commitment to a specific project that will result in any significant physical impact on the environment; and (2) CEQA Guidelines Section 15061(b)(3) in that it can be seen with certainty that there is no possibility that the amendments will have the potential for causing a significant effect on the environment.
3. Find that the proposed amendments are consistent with the General Plan, including the Housing and Land Use Element policies discussed in the staff report.
4. Find that the proposed amendments further the public interest, convenience, and general welfare of the city by encouraging a more balanced jobs to housing ratio, thereby reducing the need for residents to travel outside of the city for work.
5. Waive full reading and introduce an ordinance amending the Affordable Housing Ordinance (Fremont Municipal Code Chapter 18.155).
6. Direct staff to prepare and the City Clerk to publish a summary of the proposed ordinance.
7. Direct the City Clerk to publish a notice of public hearing to consider adoption of the ordinance in accordance with Government Code Section 6066 and 50022.3.