CITY COUNCIL AGENDA
SPECIAL MEETING
CITY OF HALF MOON BAY
WEDNESDAY, JULY 31, 2024
ADCOCK COMMUNITY CENTER
535 KELLY AVENUE
HALF MOON BAY, CA 94019
Joaquin Jimenez, Mayor
Harvey Rarback, Vice Mayor
Robert Brownstone, Councilmember
Deborah Penrose, Councilmember
Debbie Ruddock, Councilmember
7:00 PM
This agenda contains a brief description of each item to be considered. Those wishing to address the City Council on any matter not listed on the agenda, but within the jurisdiction of the City Council to resolve, may come forward to the podium during the Public Forum portion of the agenda and will have a maximum of three minutes to discuss their item.
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CONVENE SPECIAL MEETING
ROLL CALL / PLEDGE OF ALLEGIANCE
REPORT OUT FROM RECENT CLOSED SESSION MEETINGS
1. RESOLUTIONS AND STAFF REPORTS
1.A. COUNTY PROPOSED BALLOT MEASURE PURSUANT TO ARTICLE XXXIV OF THE
CALIFORNIA CONSTITUTION
Staff Recommendation: Discuss and consider whether to take a position, by roll-call vote, on the County of San Mateo’s proposed ballot measure for the November 5, 2024 General Election Ballot, pursuant to Article XXXIV of the California Constitution authorizing public agencies in San Mateo County to annually develop, construct, or acquire housing units for low-income persons.
FOR FUTURE DISCUSSION / POSSIBLE AGENDA ITEMS
ADJOURN SPECIAL MEETING
BUSINESS OF THE COUNCIL OF THE CITY OF HALF MOON BAY
AGENDA REPORT
For meeting of: July 31, 2024
TO: Honorable Mayor and City Council
FROM: Matthew Chidester, City Manager
TITLE: COUNTY PROPOSED BALLOT MEASURE PURSUANT TO ARTICLE XXXIV OF THE
CALIFORNIA CONSTITUTION
______________________________________________________________________________ RECOMMENDATION:
Discuss and consider whether to take a position, by roll-call vote, on the County of San Mateo’s proposed ballot measure for the November 5, 2024 General Election Ballot, pursuant to Article XXXIV of the California Constitution authorizing public agencies in San Mateo County to annually develop, construct, or acquire housing units for low-income persons.
FISCAL IMPACT:
There is no fiscal impact associated with this item.
STRATEGIC ELEMENT:
This action supports the Healthy Communities and Public Safety, Inclusive Governance, and Infrastructure and Environment Elements of the Strategic Plan.
BACKGROUND:
Article XXXIV, Section 1, of the California Constitution (Article 34), adopted by California voters in 1950, imposes a voter approval requirement for certain affordable housing projects, unless an exception applies. Article 34 provides, in pertinent part, that no “low-rent housing project” shall be “developed, constructed, or acquired” by any “state public body” without first putting the project to a vote of the qualified electorate.
On July 22, 2024, the County Board of Supervisors considered a resolution calling and providing for an election to submit to the voters of San Mateo County a ballot measure pursuant to Article XXXIV, authorizing public agencies in San Mateo County (including the City of Half Moon Bay) to annually develop, construct, or acquire housing units for low income persons, including for families, seniors, people with disabilities, and veterans, in the unincorporated and incorporated areas of San Mateo County, up to, collectively, 1% of the total housing units existing in San Mateo County, with any unused units carrying over for use in subsequent years. This would amount to approximately 2,900 units per year countywide according to County estimates.
During discussion of the item at the Board meeting, Supervisors suggested revisions to the measure and directed County staff to request feedback and an official position on the proposed
measure from each city within the County. The Board continued the item to a special meeting to be held on August 6, 2024, as the deadline for the Board to consolidate a measure for the November 5, 2024 election is August 9, 2024.
DISCUSSION:
The attached Staff Report from the County, as well as a letter from Mike Callagy, County Executive, provide additional context and background. The County has requested the City consider the proposed measure, and support, oppose, or take no official position. The results of any Council motion to support, oppose, or take no position on the proposed ballot measure will be conveyed by letter to the Board of Supervisors for consideration at its August 6 special meeting.
Given the quick turnaround requested by the County and the scheduling of this special meeting, staff will provide any analysis of the proposed measure and potential impacts as part of its presentation at the meeting.
ATTACHMENTS:
1. County of San Mateo Staff Report from July 22, 2024
2. County Executive letter to City Managers dated July 25, 2024 County of San Mateo
Inter-Departmental Correspondence
Department: COUNTY EXECUTIVE
File #: 24-590 Board Meeting Date: 7/22/2024
Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael Callagy, County Executive
Subject: Resolution Calling for an Article 34 Election
RECOMMENDATION:
Adopt a resolution:
A) Calling and providing for an election to submit to the voters of San Mateo County a ballot measure pursuant to Article XXXIV of the California Constitution authorizing public agencies in San Mateo County to annually develop, construct, or acquire housing units for low income persons, including for families, seniors, people with disabilities, and veterans, in the unincorporated and incorporated areas of San Mateo County, up to, collectively, 1% of the total housing units existing in San Mateo County, with any unused units carrying over for use in subsequent years; and
B) Requesting that the election be consolidated with the November 5, 2024 general election.
BACKGROUND:
Article XXXIV, Section 1, of the California Constitution (Article 34), adopted by California voters in 1950, imposes a voter approval requirement for certain affordable housing projects, unless an exception applies. Article 34 provides, in pertinent part, that no “low-rent housing project” shall be “developed, constructed, or acquired” by any “state public body” without first putting the project to a vote of the qualified electorate.
As defined in Article 34, a “low-rent housing project” means “any development composed of urban or rural dwellings, apartments or other living accommodations for persons of low income, financed in whole or in part” with public funds. “Persons of low income” means “persons or families who lack the amount of income which is necessary…to enable them, without financial assistance, to live in decent, safe and sanitary dwellings, without overcrowding.” Further, “state public body” means the “State or any city, city and county, county, district, authority, agency, or any other subdivision or public body of this State.
Since the adoption of Article 34, numerous public agencies have sought and received voter approval authorizing a maximum number of low-income housing units to be developed, acquired, or constructed within their jurisdictions. These elections authorize an Article 34 “bank” of housing units that a state public body can draw from when developing affordable housing projects. For example, in 2022, voters in South San Francisco approved a measure allowing the city to develop, construct, or acquire low-rent housing units, up to 1 percent of the total number of existing housing units in the city, for eight years. In the past few years, several counties have held similar Article 34 elections, including Alameda (2016), Humboldt (2020), and Sacramento (2022).
The California Supreme Court has confirmed that such unit banking elections that do not describe particular projects are compliant with Article 34. (Davis v. City of Berkeley (1990) 51 Cal.3d 227.) San Mateo County does not currently have a countywide Article 34 housing unit bank.
DISCUSSION:
The proposed ballot measure, if approved by voters at the November 5, 2024 general election, would provide authorization under Article 34 for the County and any public agency within the Countyincluding cities, school districts, and joint powers authorities such as the Housing Endowment and Regional Trust of San Mateo County (HEART)-to develop, construct and/or acquire affordable rental housing for low-income residents, including for families, seniors, persons with disabilities, and veterans. For purposes of the ballot measure, “public agency” would have the same meaning as “state public body,” as defined in Article 34. The housing units could be developed either in the unincorporated areas of the County or within incorporated cities.
The amount of annual development authorized by this ballot measure would be limited, countywide, to 1 percent of the total existing housing units in the County. Any undeveloped units would roll over to the next year. According to the California Department of Finance, as of January 2024, San Mateo County has approximately 289,782 housing units. Therefore, this ballot measure would allow development of approximately 2,898 affordable housing units in the first year of operation.
Other counties, such as Sacramento County and Humboldt County, have used this percentage approach for their Article 34 unit banks. This measure would not preclude the construction, development or acquisition of additional affordable housing units within the County above the 1% limit for projects authorized by a separate Article 34 vote or not otherwise subject to Article 34.
Obtaining voter approval for an Article 34 unit bank would facilitate efforts by the County and other public agencies within the County to address regional housing needs by developing, constructing, and acquiring affordable housing projects in compliance with Article 34.
These housing needs are significant. In November 2022, the Association of Bay Area Governments (“ABAG”) determined that countywide, including all cities and the unincorporated area of the County, the housing need for the 2023-2031 period is as follows: 12,196 housing units for very low-income persons (including 811 in the unincorporated area); 7,023 housing units for low-income persons (including 468 in the unincorporated area); and 7,937 housing units for moderate income persons (including 433 in the unincorporated area).
The County’s adopted 2023-31 Housing Element (“Housing Element”), which remains under review by the State Department of Housing and Community Development, promotes the production of
housing sufficient to meet the current and projected needs of the County’s diverse communities, and specifies goals including, among others to protect existing affordable housing stock, and to support new housing for extremely low to moderate-income households. The housing elements of cities within the County similarly recognize the need for additional affordable housing.
The text of the proposed ballot question is as follows:
Shall a measure be approved authorizing local public agencies in San Mateo County to, without increasing local taxes, develop, construct, or acquire housing units for low income persons, including for families, seniors, persons with disabilities, and veterans, in the unincorporated and incorporated areas of San Mateo County, on an annual basis in an amount of up to 1% of the total housing units existing in San Mateo County, with any unused units carrying over for use in subsequent years? The ballot measure would pass if it were to receive approval from a majority (i.e., 50% + 1) of eligible voters countywide.
Voter approval of a ballot measure does not constitute a project under the California Environmental Quality Act (“CEQA”). Putting before the voters of the County a measure that would allow local agencies to amass and collect state, federal and private funding to develop, construct, or acquire low -rent housing is also not a project under CEQA because doing so is merely the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment within the meaning of 14 Cal. Code Regs. § 15378(b)(4). Environmental and planning review of individual projects allowed by this measure will be undertaken in the manner required by law at the appropriate time. Therefore, pursuant to CEQA Guidelines section 15060, CEQA analysis is not required.
The County Attorney has reviewed the proposed resolution as to form.
FISCAL IMPACT:
The County would be required to cover the costs of the election on this ballot measure, which costs will be determined by the Elections Division.
Michael P. Callagy
County Executive Officer /
Clerk of the Board
County Government Center
500 County Center, 5th Floor
Redwood City, CA 94063
650-363-4121 T
www.smcgov.org
July 25, 2024
City Managers
County of San Mateo
Dear City Managers:
I hope this letter finds you well. I am writing to update you regarding the measure that I informed you about last week that the County of San Mateo is considering including on the ballot for the November 2024 election.
Specifically, the County is considering calling for an election to authorize a bank of affordable housing units to be developed, constructed, or acquired by public agencies throughout the County.
If approved, this measure would authorize public agencies within San Mateo County to annually develop, construct, or acquire a set number of housing units throughout the incorporated and unincorporated areas of the County for lowincome persons, including families, seniors, individuals with disabilities, veterans, service workers, and city and county employees.
We all know California's Article 34 has historically limited affordable housing efforts, reflecting a dark chapter in our state's history. This proposed measure presents an opportunity for our community to directly address this legacy by asking residents to vote to enable local agencies to expand affordable housing options. It is a critical step towards fostering more inclusive and equitable communities across San Mateo County.
The Board of Supervisors is currently considering two versions of a ballot measure to call for an Article 34 election. The version of the ballot measure that was presented at the special meeting of the Board of Supervisors on July 22, 2024, would authorize public agencies within San Mateo County, under Article 34, to annually develop, construct, or acquire housing units for low-income persons in an amount equal to 1% annually of the total existing housing units in San Mateo County. This translates to approximately 2,900 units per year, which could either be developed new, preserved, or converted to serve low-income residents. The ballot measure would not raise taxes. Importantly, any units that are not utilized in a given year would carry over for potential use in subsequent years, ensuring a sustained effort to meet our housing goals.
The County of San Mateo, working in consultation with cities, would assume responsibility for monitoring and sharing information regarding the use of the allocation of affordable housing units authorized by the ballot measure.
During the July 22, 2024 Board meeting, revisions to the ballot measure were suggested, including (a) defining public agencies that are eligible to avail themselves of the bank of units created by the ballot measure to include agencies that have their jurisdictional boundaries/territories within San Mateo County; (b) providing that the number of affordable units authorized to be developed, constructed or acquired shall be 2,900 units annually (with unused units in any given year rolling over for use in subsequent years); and (c) setting a term of years during which public agencies shall be authorized to develop, construct, or acquire affordable units pursuant to the ballot measure (five and eight years were mentioned as possibilities). In other ways, the revised proposed ballot measure tracks the original version of the proposal.
As part of our consideration of this measure, we are reaching out to each city within San Mateo County to solicit your council’s stance on this potential ballot measure. In particular, we are interested in whether your city supports, opposes, or has no official position on the proposed initiative, and we would also welcome any other feedback that you may have regarding the proposed versions of the measure and suggested amendments. If your council is not scheduled to meet this month, we welcome your councilmembers' individual feedback in writing at [email protected].
Feedback received will be presented to the Board of Supervisors during the next Special Board Meeting on August 6, 2024. We understand the importance of considering local perspectives regarding housing and community development, and we are committed to ensuring that all stakeholders are appropriately consulted.
I will be on vacation so please feel free to reach out to our Assistant County Executive, Iliana Rodriguez directly at (650) 363-4130 should you have any questions or require further clarification regarding the proposed measure. You may also e-mail us at [email protected] any clarifying questions or your cities position on the ballot measure.
Thank you in advance for your attention to this matter. We look forward to receiving your response by August 1, 2024, by 12:00 p.m. as we move towards finalizing our preparations for the upcoming election.
Sincerely,
Michael P. Callagy
County Executive
cc: Iliana Rodriguez