CITY COUNCIL MEETING
OCTOBER 18, 2022
PRESENTATIONS
DENSITY BONUS
ORDINANCE
UPDATE
ITEM #4
WS 22-033
Density Bonus Ordinance Update
1 Jeremy Lochirco, Planning Manager
Christina Morales, Housing Division Manager
Rozalynne Thompson, Senior Planner
Background
▪ City’s Density Bonus Ordinance was adopted in 2005.
▪ Ordinance Does Not Comply with State Legislation.
▪ City was awarded SB2 grant monies in 2019 for this
project.
▪ On February 1, 2022, the City held a Joint Work
Session with the City Council and Planning
Commission to establish priorities for further analysis. ▪ On June 26, 2022, the Homelessness Housing Task
Force held a work session to review staff
recommendations and provided feedback on the
proposed Ordinance updates.
Purpose of the Density Bonus
Help make the development of affordable housing and housing for specific target populations economically feasible by:
▪ Reducing development cost by providing concessions
▪ Increasing revenue by allowing development at a higher density (more units) ▪ Streamlining the Review and Approval Process for Density Bonus Applications
Summary of Feedback Received
Feedback from the City Council, Planning Commission, and Homelessness Housing Task Force include support for:
▪ Creating a flexible ordinance to accommodate future changes by citing State law instead of codifying full state legislation
▪ Aligning density bonus approval process with standard entitlement process to streamline housing permitting
▪ Offering incentives above what State law offers
▪ Tailor the ordinance to meet Hayward’s housing need
▪ Provide additional incentives/concessions
Basis For Staff’s Recommendation
▪ Feedback from the Joint City Council/Planning Commission Work Session ▪ Feedback from the Homelessness Housing Task Force
▪ Feedback from Targeted Stakeholder Interviews
▪ Comprehensive Review of Ordinances from Other Local Jurisdictions ▪ History of Previous Density Bonus Requests Approved by the City ▪ Results of the Displacement Study, completed in 2021
▪ Best Practices in Density Bonus Ordinances
Three Main Components of the Ordinance Update
Staff is proposing three main changes:
▪ Exceed the State’s Density Bonus Maximum by 5% for all density bonus projects that meet State's on-site
affordable unit requirement;
▪ Exceed the State's Density Bonus Maximum by 10% for
projects that meets State's on-site affordable unit
requirement and target special populations; and
▪ Increase the number of incentives/concessions for
projects that exceed the minimum on-site affordable
housing requirements under the City’s Affordable
Housing Ordinance (AHO) in order to encourage
development of more affordable units.
Targeting Special Needs Populations
Increase overall density bonus and provide additional density bonus increase for projects with special targeting of certain populations.
Special targeting includes:
▪ Mixed income rental projects that provide more than 20% of the rental units for large families (3+ bedrooms)
▪ Mixed income projects incorporating universal design principles ▪ Mixed income senior housing
▪ Mixed income college student housing
▪ Mixed income housing with unit set-asides for foster youth, disabled vets, or individuals experiencing homelessness
Existing vs. Proposed Density Bonus
Target Population
Served State Density
Bonus
State Required
Restricted Affordable
Units
State maximum
Density Increase
Proposed Hayward
Maximum Density
Proposed Hayward
Maximum Density
Increase for Special
Targeting
Very Low Income 15% 50% 55% 60%
Low Income 23% 50% 55% 60%
Moderate Income 44% 50% 55% 60%
Foster Youth/Disabled
Vets/Unhoused people
10% restricted at very
low Income
20% 25% 30% (15% restricted at
very low income)
College Students 20% Low-Income
Student
35% 40% 45% (25% restricted low-
income students)
Market Rate Senior* No Income Restriction 20% n/a n/a
What is a Concession?
A concession/incentive is defined as:
▪ A reduction of site development standards or a
modification of zoning code or architectural
design requirements, such as a reduction of
minimum square footage requirements;
▪ Approval of mixed-use zoning; or
▪ Other regulatory incentives or concessions
which result in identifiable and actual cost
reductions.
Existing State vs. Proposed Hayward Concessions
No. of Incentives/
Concessions
Required by State
Proposed No.
of Incentives/
Concessions
Percentage of
VLI Units
Percentage of
LI Units
Percentage of
MI Units
1 1* 5% 10% 10%
2 3 10% 17% 20%
3 4 15% 24% 30%
4 5 100% (LI/VLI) or
100% (MI 20% /LI 80%)
*The first tier is not increased because compliance with the Affordable Housing Ordinance’s on-site affordable housing requirement makes the project eligible for one incentive/concession.
Other Components of
Ordinance Update
▪ Streamline the review process for all
Density Bonus applications;
▪ Default to the State guidelines, when
applicable, to ensure the City’s Ordinance
reflects any changes to State law;
▪ Simplify the new Ordinance so that
developers and staff can implement the
new regulations with ease; and
▪ Develop a checklist and informational
handout for perspective developers to
promote the updated program
Additional Financial Incentives
Fee Waivers, Reductions and Deferrals
Fee Waivers: The City could promote existing waivers and reductions for park in-lieu fees and traffic impact fees for housing projects that provide on- site affordable units as part of a mixed-income project.
Fee Deferrals. The City could explore fee deferrals for utility connections as a concession for providing on-site affordable units, which would save developers the cost to finance the fees.
While Fee Waivers and Deferrals could assist with development of on-site affordable units, staff recommends these options be offered on a case-by- case, as-needed basis following additional collaboration and coordination with the Housing Division and Department of Public Works.
Next Steps
▪ Following Council feedback, staff will finalize list of proposed density bonus revisions, complete the required CEQA analysis, and present the draft Ordinance framework to the Planning Commission at their regular meeting on November 10, 2022, for feedback.
▪ Following the Planning Commission meeting, staff will prepare the draft Ordinance and expect to present to City Council on December 6, 2022, for consideration and possible adoption.
▪ Following adoption, staff will create informational documents to aid developers and staff in processing these applications and promote the City’s Density Bonus which will exceed State’s required Density Bonus.
Questions?
14 ALLOCATION OF
LOCAL
HOUSING
TRUST FUNDS
ITEM #5
WS 22-054
Hayward Police Department Year-End Report
1 Allocation of Funds Awarded through
California Department of Housing and
Community Development Local
Housing Trust Fund Program
Christina Morales, Housing Division Manager
October 18, 2022
Hayward Police Department Year-End Report
2 Purpose
Hold a public hearing to fulfill state
funding requirements and reaffirm
Local Housing Trust Fund allocations
for identified projects
Hayward Police Department Year-End Report
3 Background
Timeline
• October 2, 2018 – City awarded $2.5 million to
Mission Paradise
• September 15, 2020 – Council authorized the
City Manager to enter into an Exclusive Negotiating
Rights Agreement with RCD for the Development of
CalTrans Parcel Group 8 (PG8)
• May 4, 2021 – Council authorized the City Manager
to award additional funding of up to $4.9 million from
the Inclusionary Housing Fund to four existing
affordable housing projects that are near construction
including Mission Paradise and PG8
Hayward Police Department Year-End Report
4 Background
Timeline
• July 20, 2020 - Council authorized staff to apply for LHTF Program to Fund Mission Paradise and Parcel
Group 8 Affordable Housing
• August 2, 2021 – City submitted application
• December 23, 2021 – City awarded $3,994,906
• June 28, 2022 – Council authorized DDA for the sale
of approximately 2.36 acres of real property at Grove
Way and Foothill Boulevard for the development of
PG8
• September 26, 2022 – City entered into a Standard
Agreement with HCD
Hayward Police Department Year-End Report
5 Background
Local Housing Trust Fund Program
• Type of Funding.State grant through California
Department of Housing and Community
Development (HCD)
• Purpose. Promote and support affordable housing
projects by providing dollar-for-dollar matching
grant funds to eligible LHTFs for construction
loans or permanent financing loans
• Allowable Uses. New construction or
rehabilitation projects that serve extremely-low to
moderate-income households
Hayward Police Department Year-End Report
6 Background
LHFT Program Eligibility Criteria
Deeper Income Targeting
• At least 30% of program and matching funds
restricted for Extremely Low-Income
Households (≤ 30% AMI)
• No more than 20% of program and matching
funds used for eligible projects affordable to,
and restricted for, Moderate-Income
Households (≤ 120% AMI)
• Remaining funds must be used for eligible
projects affordable to, and restricted for,
Low-Income Households (≤ 80% AMI)
• Applications score higher the more funds
are restricted for Low-Income
Households or below.
Matching Funds
• Minimum – cities must provide
dollar-for-dollar match (including
value of land donation)
• Higher scores awarded to
applications with:
• Higher ratio of City matching funds to
requested program funds (i.e. $3 of
City matching funds to $1 of program
funds requested)
• Higher percentage matching funds
that do not come from residential local
impact fees
Hayward Police Department Year-End Report
7 Identified
Projects
Mission Paradise
• Location. Mission Boulevard and Webster and Hancock Streets • Project. 76-unit affordable rental units for low-income seniors, age 62 or older • Amenities: on-site laundry facilities, community room, computer learning center, an outdoor roof deck, an exercise area and an on-site resource coordinator
• City Funding. $1.2 million from CDBG and HOME and $3.7 million from the Inclusionary Housing Trust Fund through City NOFA
• Proposed LHTF Allocation. $1,150,000
• Project Timeline. Anticipated construction start November 2022 Hayward Police Department Year-End Report
8 Identified
Projects
Parcel Group 8
Affordable
Housing
• Location. Grove Way and Foothill Boulevard
• Project. 105 units of new or rehabilitated affordable, multifamily rental units restricted for households 60% AMI or below
• Amenities. Play area, passive open space; a community room; shared laundry; secure bike parking; and resident services.
• City Funding. $2 million from the Inclusionary Housing Trust Fund and land donation
• Proposed LHTF Allocation. $2,645,161
• Project Start. Anticipated construction start 2024
Hayward Police Department Year-End Report
9 Identified Projects
Meeting Competitive Criteria
Competitive Criteria Criteria
Met? Description
Higher percentage of funds only
used for projects affordable to,
and restricted for, Low-Income
Households (≤ 80% AMI) or
below
YES
Mission Paradise restricted to 80% AMI or below
PG8 restricted to 60% AMI or below
Higher ratio of City matching
funds to requested program
funds
YES
Including the land donation, the City is contributing
$11,984,720 of matching funds, which is $3 for every $1 the City requested and was awarded ($3,994,906)
Higher percentage matching
funds that do not come from
residential local impact fees
YES
52% of City Matching funds was donated land which
counts as a source of funding that does not come from
residential local impact fees
Hayward Police Department Year-End Report
10 Regional Housing Needs Allocation
Compliance
• Mission Paradise and PG8 will add a total of 179
affordable housing units to the City’s housing stock
which will help the City:
• Meet over 17% RHNA goal for very low-income
households
• Over 6% RHNA goal for low-income
households
Hayward Police Department Year-End Report
11 Recommendation
• That the City Council holds a public hearing and adopts:
• Resolution (Attachment II) to approve the allocation of LHTF Program grant award to Mission Paradise in the amount of $1,150,000; and to authorize the City Manager to negotiate and execute loan with EAH not-to-exceed $1,150,000; and • Resolution (Attachment III) to approve the allocation LHTF Program grant award to Parcel Group 8 Affordable Housing in the amount of $2,645,161; and to authorize the City Manager to negotiate and execute loan documents with the RCD in an amount not-to-exceed $2,645,161
Hayward Police Department Year-End Report
12 Public Hearing Format
1. Council Questions
2. Public Comments
3. Council Discussion and Action
2