STAFF REPORT TO THE CITY COUNCIL
DATE: March 8, 2022
TO: Members of the City Council
SUBMITTED BY: Robert Reber, Community Development Director Larissa Alchin, M-Group Contract Planner
SUBJECT: 2021 Annual Housing Element Progress Report
RECOMMENDED ACTION:
Approve via minute action the annual Housing Element Progress Report for the 2021 calendar year and direct staff to submit the report to the appropriate state and regional agencies.
COMMISSION/SUBCOMMITTEE ACTION AND RECOMMENDATION:
There was no commission or subcommittee review of the item.
FISCAL IMPACT OF RECOMMENDATION:
No direct financial impact of filing the annual housing report; however, failing to file the annual housing report can negatively impact the potential receipt of various grant and regional funds.
DISCUSSION:
Government Code Section 65400 requires each local government to complete a Housing Element Annual Progress Report (APR) on the status and progress in implementing the jurisdiction’s Housing Element of the General Plan, using forms and definitions adopted by the Department of Housing and Community Development (HCD). Each jurisdiction must submit its APR to HCD and the Office of Planning and Research (OPR) by April 1 each year. Cities and counties with a compliant housing element and up-to-date submissions of APRs gain access to SB 2 Building Homes and Jobs Act funds.
Attached is the draft Hercules 2021 Annual Housing Element Progress Report as part of the 2015–2023 Housing Element cycle.
The annual report defines how many new residential units were constructed in the reporting period, broken down by income levels, and then compares this information to the regional housing needs allocation (RHNA) assigned to the City for the entire Housing Element period (2015–2023). The report also looks at the City’s housing policies and reports on the progress in achieving those goals.
For the 2019 calendar year, additional information was required to meet SB 35, including the number of housing units receiving all discretionary entitlements, building permits, and certificates of occupancy. Prior to 2019, all information was only based on when a building permit was issued. Also new in 2019, AB 879 authorized HCD to evaluate the reasonableness of local fees charged under the Mitigation Fee Act. Accordingly, Table A2 in the Annual Housing Report for 2021 requires the reporting of the following for every housing unit:
When entitlements are approved;
When building permits are issued;
When certificates of occupancy are approved;
Affordability of all units in any phase of development; Additional information regarding other ancillary information.
For the 2020 calendar year, new APR reporting requirements included AB 83 (mobile home park preservation), AB 1255 (surplus land reporting), and AB 101 [Local Early Action Planning (LEAP) grant reporting], and other information such as financial assistance programs (HEAP: Homeless Emergency Aid Program; HHAP: Homeless Housing, Assistance and Prevention Program, HKEY: Homekey).
There are no new APR reporting requirements for the 2021 calendar year.
Key housing information for 2021 reflected in the report includes:
Table A: No new applications for housing submitted in 2021; Table A2: Received entitlement, building permit or certificate of occupancy, including:
Bayfront Blocks Q & R—“The Grand” at Bayfront—received temporary Certificate of Occupancy for 232 apartments, including 15 low income (60% AMI) units.
Four (4) accessory dwelling units received building permits.
Three (3) accessory dwelling units received building final/certificate of occupancy.
Table B: Progress on Regional Housing Needs Allocation (RHNA) for 2015–2023 housing cycle:
513 above-moderate affordable (i.e., market rate units) built, 269 units above RHNA of 244 units; 217 moderate affordable units (i.e., affordable at up to 120% of area median income), 117 units above RHNA of 100 units; 16 low affordable units (i.e., affordable at up to 80% of area median income), 112 units short of RHNA of 118 units; Zero (0) very low affordable units (i.e., affordable at up to 50% of area median income), 220 units short of RHNA of 220 units.
Table C: No sites identified or rezoned to accommodate additional housing.
Table D: Progress on implementing various goals and programs of the Housing Element (limited given the dissolution of redevelopment, lack of funding for housing activities, and lack of staffing).
Table E: No commercial development bonuses approved.
Table F: No affordable units rehabilitated, preserved, or acquired Table G: No City-owned land sold, leased, or otherwise disposed.
Table H: No City-owned surplus lands.
LEAP Reporting: Local Early Action Planning grant received.
City received LEAP grant award in 2021 of $150,000 to apply towards the update of the Housing Element for next Housing Cycle (2023–2031).
HCD requires that the approved Annual Progress Report be considered at a public meeting prior to the City Council approving the Report for submittal to the HCD and OPR. In the Bay Area, copies of the approved report are also forwarded to Association of Bay Area Governments (ABAG) and Contra Costa Transportation Authority (CCTA) as well. Council can approve the report via minute action instead of by Resolution.
ATTACHMENTS:
2021 Annual Housing Element Progress Report
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