STAFF REPORT TO THE CITY COUNCIL
DATE: March 14, 2023
TO: Mayor and Members of the City Council
VIA: Dante Hall, City Manager
SUBMITTED BY: Timothy Rood AICP, Community Development Director SUBJECT: 2022 Annual Housing Element Progress Report
RECOMMENDED ACTION:
Accept via minute action the annual Housing Element Progress Report for the 2022 calendar year and direct staff to submit the report to the appropriate state and regional agencies.
BACKGROUND:
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.
Prior to 2019, all information was only based on when a building permit was issued. Beginning with 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. Other APR reporting requirements include 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; and HKEY: Homekey).
For the 2022 calendar year, additional information was required in accordance with AB 757, SB 290 and SB 9, including reporting of above moderate-income units converted to moderate-income units pursuant to Government Code 65400.0, reporting of units constructed pursuant to Government Code 65852.21, reporting of lot splits pursuant to Government Code 66411.7 and reporting of density bonus for low-income student housing developments pursuant to Government Code 65915(b)(1)(F).
Government Code Section 65400 requires that the Annual Progress Report be provided to the City Council by April 1 of each year. 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.
The City Council may accept the report via minute action instead of by Resolution.
ANALYSIS:
Attached is the draft Hercules 2022 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.
Table A2 in the Annual Housing Report for 2022 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.
Key housing information for 2022 reflected in the report includes:
Table A: Three (3) Accessory Dwelling Unit applications for housing were submitted in 2022.
Table A2: Received entitlement, building permit or certificate of occupancy, including:
Skelly housing project received entitlements to construct one (1) moderate-income deed restricted, one (1) low-income deed restricted and thirty-eight (38) above moderate-income single-family homes.
Three (3) 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:
516 above-moderate affordable (i.e., market rate units) built, 272 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.
Table I: No dwelling units or lot splits pursuant to Senate Bill 9 Table J: No lower income student housing.
LEAP Reporting: Local Early Action Planning grant received.
City received REAP grant award of $20,000 and LEAP grant award in 2021 of $150,000 to apply towards the update of the Housing Element for next Housing Cycle (2023–2031).
FISCAL IMPACT:
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.
ATTACHMENTS:
Attach 1 - 2022 Housing Element Annual Progress Report