Laguna Woods City Council
March 22, 2023

CITY of LAGUNA WOODS

CITY COUNCIL
AGENDA
Adjourned Regular Meeting
Wednesday, March 22, 2023
2:00 p.m.

Laguna Woods City Hall
24264 El Toro Road
Laguna Woods, California 92637
Noel Hatch
Mayor Pro Tem
Shari L. Horne
Councilmember
Cynthia Conners
Mayor
Annie McCary
Councilmember
Carol Moore
Councilmember
Welcome to a meeting of the Laguna Woods City Council!
This meeting may be recorded, televised, and made publicly available.

Public Comments: The City offers four options for public comments:

1. Make public comments in-person

2. Submit public comments in writing

3. Make public comments by telephone

4. Make public comments by computer (Zoom)
For more information, please refer to page three of this agenda.

Americans with Disabilities Act (ADA): It is the intention of the City to comply with the ADA. If you need assistance to participate in this meeting, please contact either the City Clerk’s Office at (949) 639-0500/TTY (949) 639-0535 or the California Relay Service at (800) 735-2929/TTY (800) 735-2922. The City requests at least two business days’ notice in order to effectively facilitate the provision of reasonable accommodations.

REGULAR MEETING SCHEDULE
The Laguna Woods City Council meets regularly on the third Wednesday of each month at 2 p.m.

AGENDA POSTING AND AVAILABILITY
Regular and Adjourned Regular Meetings: Pursuant to California Government Code Section 54954.2 of the Ralph M. Brown Act, the City of Laguna Woods posts agendas at Laguna Woods City Hall, 24264 El Toro Road, Laguna Woods, California 92637; on the City’s website (www.cityoflagunawoods.org); and, at other locations designated by Resolution No. 17-30, at least 72 hours in advance of regular and adjourned regular meetings. Agendas and agenda materials are available at Laguna Woods City Hall during normal business hours and on the City’s website. Printed copies of agendas and agenda materials are provided at no charge in advance of meetings. After meetings have occurred, a per page fee is charged for printed copies.

Special and Emergency Meetings: Agenda posting and availability for special and emergency meetings is conducted pursuant to all applicable provisions of California Government Code (Ralph M. Brown Act).

AGENDA DISTRIBUTION LISTS
Electronic Distribution: The City of Laguna Woods provides notification of agenda posting and availability via email. To sign up for email notifications, please visit www.cityoflagunawoods.org/email-notifications, email [email protected], or contact the City Clerk’s Office at (949) 639-0500/TTY (949) 639-0535. Please note that the City is not responsible for, and makes no guaranties or warranties related to, the transmission or receipt of email notifications.

Mail Distribution: The City of Laguna Woods is able to mail agendas and/or agenda materials if provided with advance payment for postage and printing (if applicable). To request mail distribution, please email [email protected] or contact the City Clerk’s Office at (949) 639-0500/TTY (949) 639-0535.

FOR ADDITIONAL INFORMATION
For additional information, please contact the City Clerk’s Office at (949) 639-0500/TTY (949) 639-0535, [email protected], or 24264 El Toro Road, Laguna Woods, California 92637.

AFFIDAVIT OF POSTING

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, Yolie Trippy, City Clerk, City of Laguna Woods, hereby certify under penalty of perjury that this agenda was posted at Laguna Woods City Hall, 24264 El Toro Road, Laguna Woods, California 92637; on the City’s website (www.cityoflagunawoods.org); and, at other locations designated by Resolution No. 17-30, pursuant to California Government Code Section 54954.2 of the Ralph M. Brown Act. /s/ Yolie Trippy 3/17/23
YOLIE TRIPPY, CMC, City Clerk Date
Laguna Woods City Council Agenda  03/22/2023 Adjourned Regular Page 3 of 9

OPTIONS FOR PUBLIC COMMENTS

1. Make public comments in-person. Members of the public wishing to make in-person public comments are asked, but not required, to complete and submit a speaker card to City staff. Speaker cards are available near the entrance to the meeting location. If you do not wish to submit a speaker card, or wish to remain anonymous, you may indicate your desire to speak from the floor. Speakers are requested, but not required, to identify themselves.

2. Submit public comments in writing. Written public comments may be submitted via email ([email protected]) or delivered to Laguna Woods City Hall (24264 El Toro Road, Laguna Woods, CA 92637), provided that they are received by the City prior to 2:00 p.m. on the day of the meeting.

Written public comments may be read or summarized to the City Council at the meeting, and parties submitting written public comments are advised that their email addresses and any information submitted may be disclosed or become a matter of public record. No party should expect privacy of such information.

3. Make public comments by telephone. Dial (669) 444-9171. When prompted enter the following meeting ID: 881 8273 8589 followed by pound (#) and the following meeting passcode: 164419 followed by pound (#). When an item you wish to comment on is discussed, press *9 on your telephone to raise your hand. When it is your turn, you will be unmuted and able to speak. Please note that your telephone number will be visible to the City. No party should expect privacy of such information.

4. Make public comments by computer (Zoom).
• Visit www.zoom.us
• Click on “Join” toward the top right of the webpage
• Enter the following meeting ID: 881 8273 8589
• Open the Zoom application following the on-screen prompts • Enter the following meeting password: 164419
• Enter a name and email address as required by Zoom
When an item you wish to comment on is discussed, click on “Raise Hand.” When it is your turn, you will be unmuted and able to speak. Please note that information you enter into Zoom will be visible to the City. No party should expect privacy of such information.

I. CALL TO ORDER

1.1 Call to Order
Introductory Note: Members of the public wishing to address the City Council on items appearing on this agenda are advised to indicate their interest in doing so at the time an item is considered by notifying City staff if present in-person, pressing *9 on their telephone if participating by telephone, or clicking on “Raise Hand” if participating by computer via Zoom. Members of the public wishing to address the City Council on items not appearing on this agenda may do so during Item V.

1.2 Emergency Circumstances and Just Cause Teleconferencing Recommendation: Receive and act upon disclosures and requests from members of the City Council related to teleconferencing pursuant to California Assembly Bill 2449 (2021-2022).

II. ROLL CALL
III. PLEDGE OF ALLEGIANCE
IV. PRESENTATIONS AND CEREMONIAL MATTERS

4.1 American Red Cross Month – March 2023
(agendized by Councilmember Moore)
Recommendation: Approve and present the proclamation.

4.2 City Hall/Public Library Project Update
Recommendation: Receive and file.

V. PUBLIC COMMENTS ON NON-AGENDA ITEMS
About Public Comments on Non-Agenda Items: This is the time and place for members of the public to address the City Council on items not appearing on this agenda. To indicate interest, please notify City staff if present in-person, press *9 on your telephone if participating by telephone, or click on “Raise Hand” if participating by computer via Zoom. Pursuant to state law, the City Council is unable to take action on such items, but may engage in brief discussion, provide direction to City staff, or schedule items for consideration at future meetings.

VI. CONSENT CALENDAR
Laguna Woods City Council Agenda  03/22/2023 Adjourned Regular Page 5 of 9 About the Consent Calendar: All items listed on the Consent Calendar are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless a member of the City Council, City staff, or member of the public requests that specific items be removed from the Consent Calendar for separate discussion and consideration of action.

6.1 City Council Minutes
Recommendation: Approve the City Council meeting minutes for the regular meeting on February 15, 2023.

6.2 City Treasurer’s Report
Recommendation: Receive and file the City Treasurer’s Report for the month of February 2023.

6.3 Warrant Register
Recommendation: Approve the warrant register dated March 22, 2023 in the amount of $682,533.66.

6.4 Investment of Financial Assets Policy
Recommendation: Adopt a resolution titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAGUNA WOODS, CALIFORNIA, REVIEWING AND

ADOPTING A STATEMENT OF THE INVESTMENT

POLICY, AND ADOPTING AN INVESTMENT POLICY

6.5 Federal and State Disaster Financial Assistance
Recommendation: Adopt a resolution titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAGUNA WOODS, CALIFORNIA, REPEALING
RESOLUTION NO. 20-07 AND MAKING DESIGNATIONS

AND AUTHORIZATIONS RELATED TO APPLICATIONS

FOR AND EXECUTION OF FEDERAL AND STATE

DISASTER FINANCIAL ASSISTANCE

6.6 Tree Pruning and Removal Services
Recommendation: Approve an agreement with Great Scott Tree Service, Inc. for tree pruning and removal services and authorize the City Manager to execute the agreement, subject to approval as to form by the City Attorney.

6.7 General Plan Annual Report
Recommendation: Receive and file the General Plan Annual Report covering the 2022 calendar year.

6.8 City Hall Refurbishment & Safety Project: Phase 3
Recommendation:

1. Approve final record plans and specifications reflecting completion of the “City Hall Refurbishment & Safety Project:

Phase 3” as prepared by the project architect.

AND

2. Accept project completion of the contract agreement with US Builders & Consultants for the “City Hall Refurbishment & Safety Project: Phase 3”.

AND

3. Release contract retention in the amount of $7,907.72 withheld per California Government Code 35 days following recordation of the Notice of Completion with the County of Orange,
provided no Stop Notices are on file with the City preventing the release of the contract retention.

AND

4. Exonerate project posted bonds 35 days following recordation of the Notice of Completion with the County of Orange.

Laguna Woods City Council Agenda  03/22/2023 Adjourned Regular Page 7 of 9 VII. PUBLIC HEARINGS
VIII. CITY COUNCIL BUSINESS

8.1 2021‐2029 General Plan Housing Element Update
Recommendation: Adopt a resolution titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF LAGUNA WOODS, CALIFORNIA, ADOPTING
REVISIONS TO THE 2021-2029 GENERAL PLAN

HOUSING ELEMENT, AND PROVIDING DIRECTION

AND MAKING FINDINGS RELATED TO ADOPTION OF
THE 2021-2029 GENERAL PLAN HOUSING ELEMENT

PURSUANT TO APPLICABLE STATE LAW

8.2 City Hall Waste Drop-Off Program (Personal Medication and Home-Generated Sharps Waste Disposal)
Recommendation:

1. Authorize the City Manager to discontinue accepting unwanted personal medication at City Hall for subsequent disposal due to the implementation of California Senate Bill 212 (Jackson, Chapter 1004, Statutes of 2018), which established stewardship requirements for drug manufacturers and distributors.

AND

2. Reaffirm the City’s commitment to accepting unwanted homegenerated sharps at City Hall for subsequent disposal.

8.3 Southern California Association of Governments’ 2023 General Assembly Delegate and Alternate Delegate
Recommendation: Appoint members of the City Council to serve as a delegate and alternate at the Southern California Association of Governments’ 2023 General Assembly.

8.4 Laguna Woods Civic Support Fund
(originally agendized by Mayor Pro Tem Hatch on January 18, 2023 and re-agendized by Councilmember Moore)
Recommendation: Extend the City’s formal involvement with the Laguna Woods Civic Support Fund through June 30, 2023 and direct the Mayor to provide written notice of such extension to the Laguna Woods Civic Support Fund.

8.5 Coastal Greenbelt Authority Appointments
(agendized by Councilmember Moore)
Recommendation: Modify the City Council’s appointments to serve as first alternate and second alternate on the Coastal Greenbelt Authority Board of Directors effective immediately through December 31, 2024.

8.6 Fiscal Years 2023-25 Budget and Work Plan & Fiscal Years 2023- 34 Capital Improvement Program Development
Recommendation: Provide direction to staff.

IX. CITY COUNCIL REPORTS AND COMMENTS
About City Council Reports and Comments: This is the time and place for members of the City Council to provide reports on meetings attended including, but not limited to, meetings of regional boards and entities to which they have been appointed to represent the City and meetings attended at the expense of the City pursuant to California Government Code Section 53232.3. Members of the City Council may also make other comments and announcements.

9.1 Coastal Greenbelt Authority
Councilmember McCary, First Alternate: Councilmember Moore, Second Alternate: Councilmember Horne

9.2 Orange County Fire Authority
Mayor Pro Tem Hatch

9.3 Orange County Library Advisory Board
Councilmember Moore; Alternate: Councilmember McCary
Laguna Woods City Council Agenda  03/22/2023 Adjourned Regular Page 9 of 9

9.4 Orange County Mosquito and Vector Control District
Councilmember Horne

9.5 San Joaquin Hills Transportation Corridor Agency
Mayor Conners; Alternate: Mayor Pro Tem Hatch

9.6 South Orange County Watershed Management Area
Councilmember Moore; Alternate: Councilmember Horne

9.7 Liaisons to Community Bridge Builders
Councilmember Horne and Councilmember McCary

9.8 Other Comments and Reports
X. CLOSED SESSION
XI. CLOSED SESSION REPORT
XII. ADJOURNMENT
Next Regular Meeting: Wednesday, April 19, 2023 at 2 p.m.

Laguna Woods City Hall
24264 El Toro Road, Laguna Woods, California 92637
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4.1 AMERICAN RED CROSS MONTH –
MARCH 2023
(AGENDIZED BY COUNCILMEMBER MOORE)
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ITEM 4.1
Proclamation
City of Laguna Woods
American Red Cross Month
March 2023
WHEREAS, caring for one another is at the heart of our community and exemplified by the residents of Laguna Woods whose simple acts of kindness through the American Red Cross provide help and hope in the most difficult moments; and
WHEREAS, the City of Laguna Woods supports continuing the lifesaving legacy of Clara Barton, who founded the American Red Cross more than one hundred forty years ago to prevent and alleviate human suffering; and
WHEREAS, every day, ordinary individuals lend a helping hand to make an extraordinary difference for neighbors in need – whether it is providing emergency shelter, food and comfort for families displaced by fires and other disasters or donating lifesaving blood for cancer patients, for accident victims, for people with sickle cell disease, as well as other life-threatening conditions; and WHEREAS, the American Red Cross also supports military members and veterans along with their families and caregivers through the unique challenges of service; using vital skills such as first aid and CPR to help others survive medical emergencies; and
WHEREAS, the American Red Cross also delivers international humanitarian aid and helps reconnect loved ones separated by crises around the world; and WHEREAS, during March we celebrate the humanitarian spirit of the American Red Cross and reaffirm our commitment to help ensure no one faces a crisis alone NOW, THEREFORE, BE IT RESOLVED that the Laguna Woods City Council does hereby proclaim March 2023 as “American Red Cross Month” in the City of Laguna Woods and supports the humanitarian mission and accomplishments of the American Red Cross in our city as well as the nation and around the world.

Dated this 22nd day of March, 2023
______________________________ _______________________________ Cynthia S. Conners Attest: Yolie Trippy, CMC
Mayor City Clerk
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4.2 CITY HALL/PUBLIC LIBRARY UPDATE
(NO REPORT)
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6.0 CONSENT CALENDAR SUMMARY
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ITEM 6.0
CC  03-22-2023 ARM Consent Calendar Summary – AR Page 1 of 3 City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: March 22, 2023 Adjourned Regular Meeting
SUBJECT: Consent Calendar Summary
Recommendation
Approve all proposed actions on the March 22, 2023 Consent Calendar by single motion and City Council action.

Background
All items listed on the Consent Calendar are considered routine and will be enacted by one vote. There will be no separate discussion of these items unless a member of the City Council, staff, or the public requests that specific items be removed from the Consent Calendar for separate discussion and consideration of action.

Summary
The March 22, 2023 Consent Calendar contains the following items:

6.1 Approval of the City Council meeting minutes for the regular meeting on February 15, 2023.

6.2 Approval of a motion to receive and file the City Treasurer’s Report for the month of February 2023.

6.3 Approval of the warrant register dated March 22, 2023 in the amount of $682,533.66. A list of warrants is included in the agenda packet; detailed information about individual warrants is available at or from City Hall.

ITEM 6.0
Consent Calendar Summary – AR Page 2 of 3 CC  03-22-2023 ARM

6.4 Adoption of a resolution reviewing and adopting a statement of the investment policy, and adopting an investment policy. An agenda report is included with additional information.

6.5 Adoption of a resolution repealing Resolution No. 20-07 and making designations and authorizations related to applications for and execution of federal and state disaster financial assistance. The State of California requires all non-state agency applicants for federal financial assistance under Public Law 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act, to designate authorized agents for the same by resolution approved by the respective governing body within three years preceding the date of any application for such financial assistance. The proposed resolution would designate the City Manager and the Administrative Services Director/City Treasurer as the City’s agents and make related authorizations. Resolution No. 20-07 contains previous designations and authorizations that would be superseded by the proposed resolution.

Resolution No. 20-07 is available at or from City Hall.

6.6 Approval of an agreement with Great Scott Tree Service, Inc. for tree pruning and removal services and authorization for the City Manager to execute the agreement, subject to approval as to form by the City Attorney.

The Request for Proposals (“RFP”) for tree pruning and removal services was released on February 9, 2023 with proposals due by March 3, 2023.

Two proposals were received (Great Scott Tree Service and West Coast Arborists). After reviewing both proposals, staff recommends that the City Council award the agreement to Great Scott Tree Service due to factors including, but not limited to, cost and experience. Great Scott Tree Service provided tree pruning and removal services to the City from March 1, 2018 to March 31, 2021. Great Scott Tree Service provides or has provided similar services for the cities of Anaheim, Cypress, Irvine, Laguna Niguel, Lake Forest, Newport Beach, and Seal Beach.

6.7 Receive and file the General Plan Annual Report covering the 2022 calendar year. State law requires the City to file a report describing the status of General Plan implementation with the City Council, Governor’s Office of Planning and Research, and California Department of Housing and Community Development no later than April 1 of each year [California Government Code Section 65400(a)(2)]. An electronic version of the ITEM 6.0
CC  03-22-2023 ARM Consent Calendar Summary – AR Page 3 of 3 Housing Element-related attachments is available at or from City Hall.

6.8 [1] Approval of final record plans and specifications reflecting completion of the “City Hall Refurbishment & Safety Project: Phase 3” as prepared by the project architect (available for review at City Hall).

AND
[2] Acceptance of project completion of the contract agreement with US Builders & Consultants for the “City Hall Refurbishment & Safety Project:

Phase 3”.

AND
[3] Release of contract retention in the amount of $7,907.72 withheld per California Government Code 35 days following recordation of the Notice of Completion with the County of Orange, provided no Stop Notices are on file with the City preventing the release of the contract retention.

AND
[4] Exoneration of project posted bonds 35 days following recordation of the Notice of Completion with the County of Orange.

The “City Hall Refurbishment & Safety Project: Phase 3” is included in the Fiscal Years 2021-32 Capital Improvement Program.

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6.1 CITY COUNCIL MINUTES
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ITEM 6.1
February 15, 2023 1 City Council Regular Meeting Minutes

CITY OF LAGUNA WOODS CALIFORNIA

CITY COUNCIL MINUTES

REGULAR MEETING
February 15, 2023
2:00 P.M.

Laguna Woods City Hall
24264 El Toro Road
Laguna Woods, California 92637

I. CALL TO ORDER
Mayor Conners called the Regular Meeting of the City Council of the City of Laguna Woods to order at 2:01 p.m.

II. ROLL CALL
COUNCILMEMBER: PRESENT: Horne, McCary, Moore, Hatch, Conners ABSENT: -
All councilmembers participated in-person at the meeting location.

STAFF PRESENT: City Manager Macon, City Attorney Patterson, City Clerk Trippy All staff participated in-person at the meeting location.

III. PLEDGE OF ALLEGIANCE
Rebeca Gilad, resident, led the pledge of allegiance.

IV. PRESENTATIONS AND CEREMONIAL MATTERS
Mayor Conners delayed Item No. 4.1 to allow for an invited speaker to arrive.

4.2 City Hall/Public Library Project Update
City Manager Macon provided an update and answered related questions.

Councilmembers made comments.

V. PUBLIC COMMENTS ON NON-AGENDA ITEMS
Selma Bukstein, resident, suggested that the City sponsor CPR classes for residents.

Councilmembers briefly commented on Ms. Bukstein’s comments and Ms. Bukstein answered related questions.

ITEM 6.1
February 15, 2023 2 City Council Regular Meeting Minutes VI. CONSENT CALENDAR
Moved by Councilmember Moore, seconded by Councilmember Horne, and carried unanimously on a 5-0 vote, to approve Consent Calendar items 6.1 – 6.5.

6.1 City Council Minutes
Approved the City Council meeting minutes for the regular meeting on January 18, 2023.

6.2 City Treasurer’s Report
Received and filed the City Treasurer’s Report for the month of January 2023.

6.3 Warrant Register
Approved the warrant register dated February 15, 2023 in the amount of $838,950.01.

6.4 Teleconferencing for Meetings
Adopted a resolution titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, ALLOWING FOR THE CONTINUED USE OF
TELECONFERENCING FOR MEETINGS DURING THE COVID-19

STATE OF EMERGENCY, PURSUANT TO CALIFORNIA ASSEMBLY
BILL 361 (2021-2022)

6.5 Rejection of Claim
Rejected the following claim against the City:

George Szkiba vs. City of Laguna Woods,
Claimant: George Szkiba
VII. PUBLIC HEARINGS – None
VIII. CITY COUNCIL BUSINESS

8.1 Future of Teleconferencing and Remote Participation for Meetings City Manager Macon made a presentation.

Councilmembers discussed the item and staff answered related questions.

IV. PRESENTATIONS AND CEREMONIAL MATTERS
ITEM 6.1
February 15, 2023 3 City Council Regular Meeting Minutes

4.1 African American History Month – February 2023
City Clerk Trippy read the proclamation.

Councilmembers made comments.

Gloria Williams, African Americans Heritage Club, made comments.

Councilmembers posed for pictures with Ms. Williams.

Councilmembers made comments
IX. CITY COUNCIL REPORTS AND COMMENTS

9.1 Coastal Greenbelt Authority
Councilmember McCary stated that there had been no meeting since the last meeting.

Councilmember McCary and Mayor Conners made comments.

9.2 Orange County Fire Authority
Mayor Pro Tem Hatch provided a report.

Mayor Conners made comments.

Battalion Chief Justin Neville, Orange County Fire Authority, introduced himself, commented on an upcoming open house event, and responded to questions and comments from Mayor Pro Tem Hatch.

Mayor Conners made comments.

Battalion Chief Neville made comments.

9.3 Orange County Library Advisory Board
Councilmember Moore provided a report.

9.4 Orange County Mosquito and Vector Control District
Councilmember Horne provided a report and shared a PowerPoint presentation from the Orange County Mosquito and Vector Control District.

Mayor Pro Tem Hatch made comments and asked questions.

Councilmember Horne responded to Mayor Pro Tem Hatch.

ITEM 6.1
February 15, 2023 4 City Council Regular Meeting Minutes

9.5 San Joaquin Hills Transportation Corridor Agency
Mayor Conners provided a report.

9.6 South Orange County Watershed Management Area
Councilmember Moore stated that there had been no meeting since the last meeting.

Councilmember Moore commented on Mayor Conner’s San Joaquin Hills Transportation Corridor Agency report.

9.7 Liaisons to Community Bridge Builders
Rebecca Gilad provided a report.

Mayor Pro Tem Hatch asked questions.

Ms. Gilad responded to Mayor Pro Tem Hatch.

Councilmembers made comments.

9.8 Liaisons to Laguna Woods Civic Support Fund
Councilmember Moore stated that the next meeting is on Tuesday.

Mayor Conners asked a question.

Councilmember Moore responded to Mayor Conners.

9.9 Other Comments and Reports
Mayor Pro Tem Hatch commented on the passing of Mayor Conners’ husband, Jim Juhan.

Councilmember Moore suggested that the meeting be adjourned in Mr. Juhan’s honor.

Councilmember McCary reported on her participation in the League of California Cities’ New Mayors and Council Members Academy.

Mayor Conners commented on the passing of former Councilmember Bert Hack.

X. CLOSED SESSION – None
XI. CLOSED SESSION REPORT – None
XII. ADJOURNMENT
ITEM 6.1
February 15, 2023 5 City Council Regular Meeting Minutes The meeting was adjourned in memory of Jim Juhan and former Councilmember Bert Hack at 3:32 p.m. The next adjourned regular meeting will be at 2:00 p.m. on Wednesday, March 22, 2023, at Laguna Woods City Hall, 24264 El Toro Road, Laguna Woods, CA 92637. The next regular meeting will be at 2:00 p.m. on Wednesday, April 19, 2023 at Laguna Woods City Hall, 24264 El Toro Road, Laguna Woods, CA 92637.
__________________________________
YOLIE TRIPPY, CMC, City Clerk
Approved: March 22, 2023
__________________________________
CYNTHIA S. CONNERS, Mayor
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6.2 CITY TREASURER’S REPORT
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City of Laguna Woods
City Treasurer's Report
For the Month Ended February 28, 2023

CASH AND INVESTMENTS
ITEM 6.2
Beginning
Balances
Earnings &
Receipts Disbursements
Purchases,
Transfers &
Other
Adjustments
Ending
Balances
% of Total
Cash &
Investment
Balances
Maximum %
Allowed per
Investment
Policy
As of 1/31/23 As of 2/28/23
Cash and Cash EquivalentsAnalyzed Checking Account (Note 1) 1,146,676 $ 325,432 $ (682,820) $ - $ 789,288 $ 5.72% Cash Balances, Multi-Bank Securities (MBS) Account (Note 2 and 4) 4,765 $ 8,141 $ (5,979) $ - $ 6,926 $ 0.05% Earned Interest in Transit and Accrued Interest, MBS Account (Note 4) 14,258 $ 9,024 $ (8,141) $ - $ 15,141 $ 0.11% Petty Cash $ 286 1,214 $ (106) $ - $ 1,394 $ 0.01%
Total Cash and Cash Equivalents 1,166,913 $ 342,882 $ (697,045) $ - $ 812,750 $ 5.89% 100.00% Pooled Money Investment Accounts
Local Agency Investment Fund (LAIF) (Notes 2 and 3) $ - 2,959,364 $ - $ - $ 2,959,364 $ 21.45% Orange County Investment Pool (OCIP) (Notes 2 and 3) 6,796,333 $ 25,926 $ (210) $ - $ 6,822,049 $ 49.45% Total Pooled Money Investment Accounts 9,755,698 $ 25,926 $ (210) $ - $ 9,781,413 $ 70.91% 90.00% Investments - Interest and Income BearingCertificates of Deposit (fair value) (Note 2) 3,211,145 $ - $ - $ (10,656) $ 3,200,489 $ 23.20% Total Investments - Interest and Income Bearing 3,211,145 $ - $ - $ (10,656) $ 3,200,489 $ 23.20% 30.00% TOTAL $ 368,808 14,133,756 $ (697,256) $ (10,656) $ 13,794,652 $ 100.00% Summary of Total Cash, Cash Equivalents, and Investments:

General Fund
Special
Revenue Funds Totals
Analyzed Checking Account (2,976,995) $ 3,766,283 $ 789,288 $ Cash Balances, MBS Account 6,926 $ - $ 6,926 $
Earned Interest in Transit and Accrued Interest, MBS Account 15,141 $ - $ 15,141 $ Petty Cash 1,394 $ - $ 1,394 $
LAIF 2,959,364 $ - $ 2,959,364 $
OCIP 6,822,049 $ - $ 6,822,049 $
Certificates of Deposit 3,200,489 $ - $ 3,200,489 $
Totals $ 3,766,283 10,028,369 $ 13,794,652 $
(See NOTES on Page 4 of 4)
City Treasurer's Report Page 1 of 4 For the Month Ended February 28, 2023 City of Laguna Woods
City Treasurer's Report
For the Month Ended February 28, 2023

CASH AND INVESTMENTS
ITEM 6.2
CUSIP
Investment
# Issuer Term
Purchase
Date
Settlement
Date Par Value Market Value Book Value
Stated Rate
(Note 4)
Coupon
Type
1st Coupon
Date
Rating or
Rank (*)
Yield to
Maturity
365 Days
Maturity
Date
Money Funds and Certificate of Deposits (CDs, Federal Deposit Insurance Corporation [FDIC] Insured) 61760ARV3 2018-7 MORGAN STANLEY PRIVATE BK NATL 60 months 11/06/18 11/15/18 245,000 242,552 245,000 3.550 Semi-Annual 05/15/19 Green*** 3.550 11/15/23 02589AA28 2018-9 AMERICAN EXPRESS NATL 60 months 12/04/18 12/04/18 240,000 237,384 240,000 3.550 Semi-Annual 06/04/19 Green*** 3.550 12/04/2333715LCZ1 2018-10 FIRST TECHNOLOGY FED CU MTN VIEW 60 months 12/07/18 12/12/18 245,000 242,337 245,000 3.600 Monthly 01/12/19 Green*** 3.600 12/12/23 052392CK1 2022-6 AUSTIN TELCO FED CR 12 months 12/09/22 12/16/22 245,000 245,147 245,000 5.100 Monthly 01/01/23 Green*** 5.100 12/18/23 00833AAB6 2022-7 AFFINITY PLUS CR UN 12 months 12/15/22 12/27/22 245,000 245,132 245,000 5.100 Monthly 01/27/23 Green*** 5.100 12/27/23 949763ZA7 2019-1 WELLS FARGO BK N A 60 months 04/09/19 04/10/19 245,000 239,076 245,000 2.850 Monthly 05/10/19 Green* 2.850 04/10/24 38150VBG3 2022-2 GOLDMAN SACHS BK USA 24 months 05/24/22 06/01/22 245,000 238,517 245,000 2.900 Semi-Annual 12/01/22 Green* 2.900 06/03/24 98138MBA7 2022-8 WORKERS FED CR UN 24 months 12/09/22 12/16/22 245,000 244,571 245,000 4.950 Monthly 01/16/23 Yellow** 4.950 12/16/24 75472RBB6 2020-1 RAYMOND JAMES BK NATL ASSN 60 months 02/06/20 02/14/20 245,000 230,094 245,000 1.750 Semi-Annual 08/14/20 Green*** 1.750 02/14/25 59013KGJ9 2020-2 MERRICK BANK 60 months 03/24/20 03/31/20 100,000 93,628 100,000 1.800 Monthly 05/01/20 Green*** 1.800 03/31/25 14042TGG6 2022-1 CAPITAL ONE BK USA NATL ASSN 36 months 05/24/22 05/25/22 245,000 235,249 245,000 3.100 Semi-Annual 11/25/22 Green* 3.100 05/27/25 32022RRG4 2022-4 1ST FINL BK USA 48 months 06/15/22 06/24/22 245,000 232,610 245,000 3.150 Monthly 07/24/22 Green* 3.150 06/24/26 50625LBN2 2022-3 LAFAYETTE FED CR 60 months 05/24/22 06/15/22 245,000 231,216 245,000 3.250 Monthly 07/15/22 Green*** 3.250 06/15/27 14042RUX7 2022-5 CAPITAL ONE NATL ASSN 60 months 10/06/22 10/13/22 245,000 242,974 245,000 4.500 Semi-Annual 04/13/23 Green* 4.500 10/13/27 Accrued Interest - Month End 15,141Total CDs 3,280,000 3,215,630 3,280,000 Table 1: CD Rankings (used prior to September 2017)
IDC Rank Group Meaning
Veribanc
Rank
200-300 Superior Green165-199 Excellent Yellow125-164 Average Red 75-124 Below Average
2-74 Lowest Ratios
1 Highest Probability of Failure
Government Pooled Money Investment Accounts (PMIA) (Notes 2 and 3) N/A N/A Local Agency Investment Fund (LAIF) N/A Various Various 2,971,485 2,959,364 2,971,485 Note 3 Quarterly N/A N/A N/A N/AN/A N/A Orange County Investment Pool (OCIP) N/A Various Various 6,965,540 6,822,049 6,965,540 Note 3 Monthly N/A N/A N/A N/A Total PMIA 9,937,025 9,781,413 9,937,025
(See NOTES on Page 4 of 4)
Merits close attention, does not meet minimal qualifications for equity and has incurred significant losses (*) At the time of purchase and until September 2017, CDs were rated or ranked using an IDC Financial Publishing, Inc. (IDC) compiled ranking, and includes a one-number summary rank of quality comprised of 35 key financial ratios. Ranks range from 1 (the lowest) to 300 (the highest) and fall into one of the following six groups per Table 1. Post September 2017, CDs are ranked using the Veribanc Rating System, a two-part color code and star classification system which tests the present standing and future outlook by reviewing an institution's capital strength, asset quality, management ability, earnings sufficiency, liquidity, and sensitivity to market risk. Table 2 below summarizes the Veribanc color rankings. Veribanc star ratings of one to three, with three being best, are used to help review a possible future trend of an institutions health based on metrics from ten prior quarters. A rating of one, two, or three, are not necessarily an indicator of risk or an undesirable investment. The City reviews other rating systems and issuer financials before choosing any investment.

Table 2: Veribanc Color Rankings (used beginning in September 2017) Color Meaning
Highest rating, exceeds qualifications in equity and income tests Merits attention, meets minimal qualifications in equity and income tests City Treasurer's Report Page 2 of 4 For the Month Ended February 28, 2023 City of Laguna Woods
City Treasurer's Report
For the Month Ended February 28, 2023

CASH AND INVESTMENTS
ITEM 6.2
Beginning
Balances
Contributions /
(Withdrawals)
Administrative
Fees &
Investment
Expense
Unrealized
Gain / (Loss)
Ending
Balances
As of 1/31/23 As of 2/28/23
Other Post-Employment Benefits (OPEB) TrustCalPERS California Employers' Retiree Benefit Trust (CERBT) (Note 2) 131,437 $ - $ (8) $ (4,475) $ 126,953 $ (CERBT holds all assets and administers the OPEB Trust) Employer Pension Contributions TrustCalPERS California Employers' Pension Prefunding Trust (CEPPT) (Note 2) - $ - $ - $ - $ - $ (CEPPT holds all assets and administers the Employer Pension Contributions Trust) Total Other Funds - Held in Trust 131,437 $ - $ (8) $ (4,475) $ 126,953 $ (See NOTES on Page 4 of 4)
City Treasurer's Report Page 3 of 4 For the Month Ended February 28, 2023 City of Laguna Woods
City Treasurer's Report
For the Month Ended February 28, 2023

CASH AND INVESTMENTS
ITEM 6.2
Notes:

OPEB Trust / The City made no contributions to or withdrawals from the OPEB Trust. The OPEB Trust experienced a net loss of ($4,483.46) in February 2023.Employer Pension Contributions Trust / In April 2021, the City elected to participate in the CEPPT. The City has not yet made contributions to the CEPPT.

Pool
Earnings
Post
Prior Period
Earnings
Deposited
Deposit for Period
Ended
Current
Month /
Quarter
Gross Yield
Current Month / Quarter
Earnings Will Post
LAIF Quarterly $0.00 See Notes See Notes April 2023
OCIP Monthly $25,926.16 October and
November 2022
See Notes See Notes
City Treasurer's CertificationI, Elizabeth Torres, City Treasurer, do hereby certify:
y That all investment actions executed since the last report have been made in full compliance with the City's Investment of Financial Assets Policy; andy That the City is able to meet all cash flow needs which might reasonably be anticipated for the next 12 months.

Elizabeth Torres, City Treasurer
Notes
Total pool interest yield for February 2023 was 2.624% and the City's yield will be slightly lower based on allocation ratios and administrative fees to be deducted.Interest is posted three months in arrears and fees are posted monthly. Accrued interest pending payment at February 28, 2023 was $30,974.84. February 2023 interest rate was 3.115% and fees were 0.030%, for a net yield of 3.085%.

Note 4 - CDs / The stated earnings rate for CDs is a fixed rate for the full term. The City earned interest of $8,140.56 and transferred out $5,979.19 in cash balances to the City's checking account in February 2023. Cash balances to be invested or paid out are classified separately on page 1 of 4. The City's portfolio also has $15,141.04 in accrued interest, not yet vested. Note 1 - Analyzed Checking Account / Monthly activity reported does not reflect February 2023 vendor invoicing processed after the date of this report. Note 2 - During February 2023, transaction activity in pooled money investment accounts, investment accounts and fiduciary trusts included:

LAIF / The City made no deposits to or withdrawals from the LAIF account. The balance includes an adjustment in the amount of ($12,120.51) to reflect the fair market value of the investment at June 30, 2022.OCIP / The City made no deposits to or withdrawals from the OCIP account. The balance includes an adjustment in the amount of ($143,491.10) to reflect the fair market value of the investment at June 30, 2022.Investments / There were no maturities of investments. Investments were adjusted in the amount of ($10,656.00) to report balances at fair market value as of February 28, 2023.

Note 3 - Investment earnings on pooled money investment accounts deposited and reported in February 2023 net of related fees were:

City Treasurer's Report Page 4 of 4 For the Month Ended February 28, 2023 Digitally signed by Elizabeth Torres Date: 2023.03.15 11:13:11 -07'00'

6.3 WARRANT REGISTER
This page is intentionally blank.

ITEM 6.3
Date Vendor Name Description Amount
Debit Automatic Bank Debits:

Debit 02/01/2023 CALPERS - RETIREMENT Unfunded Accrued Liability / January 2023 230.33Debit 02/01/2023 CALPERS - RETIREMENT Unfunded Accrued Liability / January 2023 116.67Debit 02/01/2023 ADP TAX Payroll Taxes / Pay Period Ended 01/27/2023 9,589.74Debit 02/01/2023 ADP WAGE PAY Payroll Transfer / Pay Period Ended 01/27/2023 20,415.87Debit 02/02/2023 NAVIA BENEFIT SOLUTIONS Employee Benefit Program / January 2023 416.67Debit 02/02/2023 DELTA DENTAL OF CALIFORNIA Employee Benefit Program / February 2023 472.44Debit 02/02/2023 GLOBAL PAYMENTS / OPEN EDGE Credit Card Processing Fees / January 2023 1,075.57Debit 02/02/2023 AUTHORIZE.NET Online Credit Card Processing Fees / January 2023 12.00Debit 02/03/2023 MISSION SQUARE RETIREMENT Employee Benefit Program / Pay Period Ended 01/27/2023 1,520.00Debit 02/03/2023 ADP PAYROLL SERVICES Payroll Processing Fees / Pay Periods Ended 12/30/2022 & 01/13/2023 415.20Debit 02/08/2023 NAVIA BENEFIT SOLUTIONS, INC 125 Cafeteria Plan Administration / February 2023 100.00Debit 02/09/2023 NAVIA BENEFIT SOLUTIONS Employee Benefit Program / February 2023 416.63Debit 02/09/2023 NAVIA BENEFIT SOLUTIONS Employee Benefit Program / February 2023 651.78Debit 02/10/2023 COUNTY OF ORANGE - SHERIFF Law Enforcement Services / February 2023 261,943.67Debit 02/13/2023 CALPERS - HEALTH Employee Benefit Program / February 2023 7,847.63Debit 02/14/2023 U.S. BANK Bank Service Charges / January 2023 49.04Debit 02/14/2023 CALPERS - RETIREMENT Retirement Contributions / Pay Period Ended 01/13/2023 3,157.94Debit 02/14/2023 CALPERS - RETIREMENT Retirement Contributions / Pay Period Ended 01/13/2023 1,713.19Debit 02/15/2023 ADP TAX Payroll Taxes / Pay Period Ended 02/10/2023 9,184.68Debit 02/15/2023 ADP WAGE PAY Payroll Transfer / Pay Period Ended 02/10/2023 20,173.83Debit 02/16/2023 NAVIA BENEFIT SOLUTIONS Employee Benefit Program / February 2023 198.93Debit 02/16/2023 MISSION SQUARE RETIREMENT Employee Benefit Program / Pay Period Ended 02/10/2023 1,520.00Debit 02/22/2023 ADP PAYROLL SERVICES Payroll Processing Fees / Quarterly and Year End Processing 131.10Debit 02/23/2023 NAVIA BENEFIT SOLUTIONS Employee Benefit Program / February 2023 257.53Debit 02/28/2023 CALPERS - RETIREMENT Retirement Contributions / Pay Period Ended 01/27/2023 3,157.94Debit 02/28/2023 CALPERS - RETIREMENT Retirement Contributions / Pay Period Ended 01/27/2023 1,727.94 Check
Number Warrants:
6436 02/02/2023 ABOUND FOOD CARE Edible Food Recovery Program Services / December 2022 317.00 6437 02/02/2023 AT&T Telephone / 458-3487 / January 2023 47.56 6438 02/02/2023 AT&T Telephone / 639-0500 / January 2023 233.93 6439 02/02/2023 AT&T Telephone / 452-0600 / January 2023 2,614.626440 02/02/2023 BRIGHTVIEW LANDSCAPE SERVICES, INC. Landscape Maintenance / January 2023 8,313.03 6441 02/02/2023 BUREAU VERITAS NORTH AMERICA INC Building Plan Review Services / November 2022 9,185.006442 02/02/2023 CIVICPLUS, LLC Municode Online Renewal / April 2022 - March 2023 500.00 6443 02/02/2023 FUSCOE ENGINEERING, INC. Engineering Services 8,412.50 6444 02/02/2023 INTERWEST CONSULTING GROUP Building Official, Permit Counter & Inspection Services / September 2022 64,295.006445 02/02/2023 JOHN L. HUNTER & ASSOCIATES, INC NPDES Inspection Services / December 2022 495.00 6446 02/02/2023 MARINA LANDSCAPE, INC. Ridge Route Landscape Project 45,374.326447 02/02/2023 OBR ARCHITECTURE, INC. City Hall/Public Library Project 8,064.03 6448 02/02/2023 OMNI ENTERPRISE INC Janitorial Services / December 2022 2,480.00 6449 02/02/2023 PETTY CASH Replenish Petty Cash / January 2023 -6450 02/02/2023 SOUTHWEST INSPECTION AND TESTING, INC. City Hall/Public Library Project 1,292.00

CITY OF LAGUNA WOODS

WARRANT REGISTER
March 22, 2023
This Report Covers the Period 02/01/2023 through 02/28/2023 1 of 4
ITEM 6.3
Date Vendor Name Description Amount

CITY OF LAGUNA WOODS

WARRANT REGISTER
March 22, 2023
This Report Covers the Period 02/01/2023 through 02/28/2023 6451 02/02/2023 THALES CONSULTING INC. State Controller's Report / Fiscal Year 2021-22 1,060.006452 02/02/2023 US BUILDERS AND CONSULTANTS City Hall Refurbishment & Safety Project: Phase 3 39,516.616453 02/10/2023 ACC BUSINESS City Hall Internet Service / December 2022 608.66 6454 02/10/2023 BRIGHTVIEW LANDSCAPE SERVICES, INC. Landscape Maintenance / January 2023 2,503.756455 02/10/2023 CIVICPLUS, LLC Annual Subscription Municode Online / Fiscal Year 2022-23 350.00 6456 02/10/2023 COUNTY OF ORANGE Maintenance For Emergency Radio 243.25 6457 02/10/2023 EPIC IO TECHNOLOGIES, INC. City Hall Internet Service / February 2023 171.45 6458 02/10/2023 MISSION SQUARE RETIREMENT Quarterly Plan Fee / January - March 2023 125.006459 02/10/2023 PRACTICAL DATA SOLUTIONS IT Support Services / January 2023 3,889.63 6460 02/10/2023 RECREATION BRANDING SERVICES Graphic Design 306.00 6461 02/10/2023 RICOH USA, INC. Copier Usage / November 2022 - January 2023 69.37 6462 02/10/2023 RUTAN & TUCKER, LLP Legal Services / December 2022 6,710.006463 02/10/2023 SAFE AND SOUND SECURITY, INC. Security Camera Purchase & Installation 26,371.906464 02/10/2023 SOUTHERN CALIFORNIA EDISON Electric Services / January 2023 6,446.686465 02/10/2023 SOUTHERN CALIFORNIA SHREDDING, Shredding Services / January 2023 400.00 6466 02/10/2023 STAPLES Office & Janitorial Supplies 387.306467 02/10/2023 SWEEPING CORPORATION OF AMERICA Street Sweeping Services / January 2023 4,350.006468 02/10/2023 U.S. BANK Credit Card Charges (expenditures reported separately - see note 3) 1,514.316469 02/10/2023 WM CURBSIDE, LLC HHW, Medicine & Sharps Program / January 2023 4,293.536470 02/16/2023 360CIVIC Website Hosting & Maintenance / January 2023 600.00 6471 02/16/2023 AT&T Telephone / 581-9821 / January 2023 185.25 6472 02/16/2023 AT&T White Pages / February 2023 4.63
6473 02/16/2023 BRIGHTVIEW LANDSCAPE SERVICES, INC. Landscape Maintenance / January 2023 2,083.47 6474 02/16/2023 CALIFORNIA YELLOW CAB Taxi Voucher Services / January 2023 357.00 6474 02/16/2023 CALIFORNIA YELLOW CAB NEMT Taxi Voucher Services / January 2023 361.006475 02/16/2023 CITY OF LAGUNA BEACH Animal Control & Shelter Services / January 2023 9,426.756476 02/16/2023 COUNTY OF ORANGE Automated Fingerprint ID System / February 2023 613.006477 02/16/2023 FUSCOE ENGINEERING, INC. Engineering Services 18,761.256478 02/16/2023 KONE INC. City Hall Elevator Maintenance / February 2023 225.006479 02/16/2023 NAJIEH SOBHI Taxi Voucher Refund 61.606480 02/16/2023 ORKIN Pest Control Services 2,100.00 6481 02/16/2023 RICOH USA, INC. Copier Lease / March 2023 246.57 6482 02/16/2023 SOUTHERN CALIFORNIA GAS COMPANY Gas Service - City Hall / January 2023 1,208.156483 02/16/2023 VERIZON WIRELESS Building iPads Data Plans / January 2023 120.03 6484 02/24/2023 AMAZON CAPITAL SERVICES Office Supplies 228.68 6485 02/24/2023 BOUTWELL FAY LLP Legal Services / January 2023 42.506486 02/24/2023 BRIGHTVIEW LANDSCAPE SERVICES, INC. Landscape Maintenance / November - December 2022 31,754.806487 02/24/2023 CAPTIONING UNLIMITED Closed Captioning / February 2023 200.00 6488 02/24/2023 HDL COREN & CONE Property Tax Consulting Services / Fiscal Year 2023-24 2,100.006489 02/24/2023 MANAGED HEALTH NETWORK Employee Benefit Program / March 2023 16.726490 02/24/2023 MARC DONOHUE Administrative Services / February 2023 150.00 6491 02/24/2023 MICHAEL BAKER INTERNATIONAL Planning Services / January 2023 8,073.75 6492 02/24/2023 RJM DESIGN GROUP Landscape Architect Services 800.006493 02/24/2023 ROBERT RAYHILL Taxi Voucher Refund 218.80 6494 02/24/2023 TONY'S LOCKSMITH & SAFE SERV. City Hall Maintenance 145.00 2 of 4
ITEM 6.3
Date Vendor Name Description Amount

CITY OF LAGUNA WOODS

WARRANT REGISTER
March 22, 2023
This Report Covers the Period 02/01/2023 through 02/28/2023 6495 02/24/2023 U.S. BANK Credit Card Charges (expenditures reported separately - see note 4) 3,069.396496 02/24/2023 VISION SERVICE PLAN OF AMERICA Employee Benefit Program / March 2023 129.576497 02/24/2023 YUNEX LLC Traffic Signal Maintenance / January 2023 1,813.00 Total Bank Debits and Warrants: $ 682,533.66
TOTAL $ 682,533.66
NOTES:Note 1 - City Councilmembers are eligible to receive either a salary or vehicle reimbursement allowance in the amount of $300 per month ($3,600 per year). Suchcompensation is included in the City's regular payroll (see "ADP Payroll Services" under "Automatic Bank Debits"), unless waived by the Councilmember. For themonth of February 2023, the following Councilmembers received compensation in the amount of $300: Conners, Hatch, Horne, and McCary.Note 2 - Petty cash is reported as cash is paid out, not when the fund is replenished. No petty cash transactions were paid during this time period. The petty cash replenishment on February 2, 2023 was for January petty cash expenditures.Note 3 - The table below summarizes credit card expenditures paid via Check #6468 to U.S. Bank totaling $1,514.31:

Microsoft Office 365 Subscription $162.00
Adobe Computer Software $119.95
Zoom Video Conferencing $69.98
Microsoft Office 365 Online Services $462.50
ZURI City Hall Refurbishment & Safety Project: Phase 3 $179.10 Stater Brothers Staff Holiday Luncheon $20.85
ELKAY (MR Direct) City Hall Maintenance $67.88
Smart & Final Staff Holiday Luncheon $33.76
Olive Garden Staff Holiday Luncheon $238.57
Staples Office Supplies $6.59
CalChamber Office Supplies $153.13
Total Credit Card Reimbursement: $1,514.31
Note 4 - The table below summarizes credit card expenditures paid via Check #6495 to U.S. Bank totaling $3,069.39:

Microsoft Office 365 Subscription $162.00
Adobe Computer Software $119.95
Zoom Video Conferencing $29.98
Microsoft Office 365 Online Services $462.50
League of California Cities New Mayors and Council Members Academy Registration (McCary) $1,620.00 Expedia New Mayors and Council Members Academy Lodging (McCary) $453.28 CMTA Membership Dues / Fiscal Year 2022-23 $95.00
Saddleback Community College Notary Public Training $70.00 USPS Postage $16.50
The UPS Store Office Supplies $16.47J & M Trophies Plaque $23.71 Total Credit Card Reimbursement: $3,069.39
3 of 4
ITEM 6.3
Date Vendor Name Description Amount

CITY OF LAGUNA WOODS

WARRANT REGISTER
March 22, 2023
This Report Covers the Period 02/01/2023 through 02/28/2023 Administrative Services Director/City Treasurer's CertificationI, Elizabeth Torres, Administrative Services Director / City Treasurer, do hereby certify:
y That the City is able to meet all cash flow needs which might reasonably be anticipated for the next 12 months; andy That the City is in compliance with California Government Code Section 27108.

Elizabeth Torres, Administrative Services Director/City Treasurer Dated y In accordance with California Government Code Section 37202, I hereby certify to the accuracy of the demands on cash summarized within; 4 of 4
Digitally signed by Elizabeth Torres Date: 2023.03.15 11:15:04 -07'00'

6.4 INVESTMENT OF FINANCIAL ASSETS POLICY
This page is intentionally blank.

ITEM 6.4
CC  03-22-2023 ARM ITEM 6.4 – AR Page 1 of 2
City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: March 22, 2023 Adjourned Regular Meeting
SUBJECT: Investment of Financial Assets Policy
Recommendation
Adopt a resolution titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, REVIEWING AND ADOPTING A

STATEMENT OF THE INVESTMENT POLICY, AND ADOPTING AN

INVESTMENT POLICY
Background
Local government investment policies and activities are subject to standards and limitations set forth in California Government Code, including Section 53601 et seq., which describes permissible investment types and maximum investments.

California Government Code Section 53607 requires that the City Council review the City’s investment policy, as it relates to any delegation of investment authority, at least annually. Separately, California Government Code Section 53646 speaks to the advisability of regular investment policy reviews.

The existing investment policy was last reviewed and adopted by the City Council at the adjourned regular meeting on September 21, 2022.

On December 21, 2022, the City Council appointed Councilmembers Horne and McCary to serve on the standing Investment Policy Review Committee in 2023 and ITEM 6.4
ITEM 6.4 – AR Page 2 of 2 CC  03-22-2023 ARM
2024. The Investment Policy Review Committee is responsible for conducting at least biannual reviews of the adequacy and effectiveness of the investment policy and preparing related recommendations for City Council consideration.

Discussion
Today’s meeting is an opportunity for City Council action, as well as public input, on the proposed review and adoption of a statement of the investment policy, and adoption of an investment policy (Attachment A).

The Investment Policy Review Committee, City Manager, and City Treasurer recommend that the City Council adopt a modified investment policy (Exhibit A to Attachment A), in order to ensure its continued adequacy and effectiveness. The proposed modifications are intended to allow the City to take better advantage of present interest rates by increasing the maximum amount of portfolio investment for non-negotiable certificates of deposit from 30% (no more than 10% with one bank or issuer) to 90%. State law does not limit the amount of the City’s portfolio that can be invested in non-negotiable certificates of deposit. The 30% limit applies only to negotiable certificates of deposit.

The investment policy requires the City Treasurer to certify monthly that the City is able to meet all cash flow needs which might reasonably be anticipated for the next 12 months. Decisions as to whether to invest in certificates of deposit and, if so, in what amounts and for how long, are made after considering cash flow needs.

Fiscal Impact
Sufficient funds to support this project are included in the City’s budget.

Attachments: A – Proposed Resolution
Exhibit A – Proposed Investment Policy
B – Proposed Investment Policy (redline)
ITEM 6.4 – Attachment A
R 23-XX 1 XX-XX-2023
RESOLUTION NO. 23-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, CALIFORNIA, REVIEWING AND ADOPTING A

STATEMENT OF THE INVESTMENT POLICY, AND ADOPTING AN

INVESTMENT POLICY
WHEREAS, the California legislature has declared that the deposit and investment of public funds by local officials and agencies is an issue of statewide concern (California Government Code sections 53600.6 and 53630.1); and WHEREAS, the City Council is able to invest surplus monies not required for the immediate necessities of the City in accordance with California Government Code sections 5921 and 53601 et seq.; and
WHEREAS, the City’s investment policy is contained in Administrative Policy 2.2 and was last adopted by the City Council on September 21, 2022; and WHEREAS, on December 21, 2022, the City Council appointed Councilmembers Horne and McCary to serve on the standing Investment Policy Review Committee from January 1, 2023 through December 31, 2024, as called for in the investment policy; and
WHEREAS, the City Manager and Administrative Services Director/City Treasurer have proposed modifications to the existing investment policy, in order to ensure its continued adequacy and effectiveness; and WHEREAS, at a special meeting on March 16, 2023, the Investment Policy Review Committee considered and voted to recommend that the City Council adopt modifications to the existing investment policy, which are incorporated into the investment policy attached hereto as Exhibit A.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. After independent review and consideration, the administrative policy attached hereto as Exhibit A is adopted and is a statement of the City’s investment policy. The City Council receives and files said statement in accordance with the City’s investment policy and applicable California Government Code and ITEM 6.4 – Attachment A
R 23-XX 2 XX-XX-2023
Laguna Woods Municipal Code provisions. The administrative policy attached hereto as Exhibit A replaces and supersedes all previous City investment policies.

SECTION 2. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

PASSED, APPROVED AND ADOPTED on this XX day of XX 2023. _______________________________
CYNTHIA S. CONNERS, Mayor
ATTEST:
________________________________
YOLIE TRIPPY, CMC, City Clerk

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, YOLIE TRIPPY, City Clerk of the City of Laguna Woods, do HEREBY CERTIFY that the foregoing Resolution No. 23-XX was duly adopted by the City Council of the City of Laguna Woods at an adjourned regular meeting thereof, held on the XX day of XX 2023, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________________
YOLIE TRIPPY, CMC, City Clerk
ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 1 of 18

CITY OF LAGUNA WOODS
ADMINISTRATIVE POLICY 2.2

INVESTMENT OF FINANCIAL ASSETS

2.2.01. Statement of Purpose.

This Administrative Policy is intended to assist the City of Laguna Woods with the investment of the City’s financial assets in a manner that ensures adequate safety and liquidity, while maximizing yield (return) and complying with the requirements of California Government Code sections 53600 and 53635 et seq.

2.2.02. Scope.

This Administrative Policy generally applies to all financial assets and investment activities of the City. Such funds are accounted for, or disclosed, in annual audited financial statements and include the General Fund, Special Revenue Funds, and the Capital Projects Fund. Funds belonging to the Laguna Woods Civic Support Fund and funds invested separately with independent fiduciaries, including funds held and managed by the California Public Employees’ Retirement System (CalPERS) for the purpose of funding employee retirement obligations and other post-employment benefits (OPEB) are exempt from this Administrative Policy.

2.2.03. Objectives.

The objectives of the City’s investment activities, in priority order, shall be:

1. Safety – Safety of principal shall be the foremost objective. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall investment portfolio and the mitigation of credit risk and interest rate risk. This Administrative Policy recognizes that market conditions may warrant the sale of individual securities that would incur market losses in order to protect from further capital losses. The intent of this Administrative Policy is to ensure that capital losses are minimized on a portfolio level rather than on each transaction. To attain the safety objective, diversification of investments among a variety of securities with independent returns and institutions is required.

2. Liquidity – The investment portfolio shall remain sufficiently liquid (i.e., capable of being converted to cash quickly) in order to enable the City to meet all reasonably anticipated cash demands and operational requirements and to ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 2 of 18
maintain compliance with all applicable indenture agreements. Since unusual or unanticipated cash demands and operational requirements may occur from time-to-time, the portfolio shall primarily consist of investments in securities with active secondary and resale markets.

3. Yield (Return) – The investment portfolio shall be designed in a manner that seeks to attain the highest rate of return, consistent with established safety and liquidity objectives. While it is acknowledged and understood that occasional measurement losses may occur, the rate of return on the investment portfolio should be designed to attain a market rate of return throughout budgetary and economic cycles for similar investments.

2.2.04. Delegation of Authority.

City Treasurer
No person other than the City Treasurer or Acting City Treasurer (hereafter referred to jointly as the “City Treasurer”) shall engage in an investment transaction using the City’s financial assets. The City Treasurer shall additionally be responsible for all investment transactions undertaken and shall establish and maintain a system of internal controls to regulate all investing activities.

In accordance with Government Code Section 53607, the City Council delegates investment authority for a one-year period to the City Treasurer. Such delegation of authority is subject to annual review and renewal by the City Council, as well as revocation at the City Council’s discretion. Adoption of this Administrative Policy shall constitute renewal of such delegation for an additional one-year period.

Pursuant to Laguna Woods Municipal Code Section 2.10.010, the City Treasurer is appointed by, and reports to, the City Manager. The City Manager may serve as, or appoint, an Acting City Treasurer at any time during the absence of a permanent City Treasurer. During his/her/their appointment, the Acting City Treasurer shall have all of the powers and duties of the City Treasurer.

The City Treasurer and City Manager (with respect to his/her/their role appointing and supervising the City Treasurer, and participating in investment decisions) shall be relieved of personal responsibility for an individual investment’s performance or losses, market price changes, and the performance of or losses incurred by the overall portfolio provided that (1) actions were undertaken in accordance with this Administrative Policy and applicable federal and state law, (2) significant deviations ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 3 of 18
from expectations were reported to the City Council in a timely manner, and (3) appropriate action was taken to mitigate future adverse developments.

Investment Policy Review Committee of the City Council
The Investment Policy Review Committee shall be responsible for conducting at least biannual reviews of the adequacy and effectiveness of this Administrative Policy and preparing related recommendations for City Council consideration.

The City Council shall appoint two of its members to serve on the Investment Policy Review Committee for terms two calendar years in length, commencing on January 1 of each odd-numbered year. The City Council reserves the right to remove or replace any member of the Investment Policy Review Committee, with or without cause, following a publicly noticed vote of a majority of the quorum of City Councilmembers present at the time.

The Investment Policy Review Committee shall be considered a standing committee, subject to all applicable provisions of the Ralph M. Brown Act.

2.2.05. Public Trust.

The City Council, City Manager, City Treasurer, and all individuals authorized to participate in investment decisions on behalf of the City shall act as custodians of the public trust and recognize that the investment portfolio is subject to public review and evaluation. The City’s overall approach to investment shall be designed and managed with a degree of professionalism that is worthy of the public trust and will avoid any transactions that might impair public confidence.

2.2.06. Prudence.

The City Council, City Manager, City Treasurer, and all individuals authorized to participate in investment decisions on behalf of the City, are considered to be trustees and, therefore, fiduciaries subject to the prudent investor standard. The prudent investor standard is summarized in Government Code Section 53600.3, as follows:

All governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 4 of 18
a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

2.2.07. Ethics and Conflicts of Interest.

As set forth in the City’s Conflict of Interest Policy, and as otherwise required by the Political Reform Act and Fair Political Practices Commission, public officials who manage public investments are required to file economic interest disclosures.

In addition to federal, state and local statutes relating to conflicts of interest, the City Council, City Manager, City Treasurer, and all individuals authorized to participate in investment decisions on behalf of the City shall refrain from personal business association or activity that conflicts with proper execution of this Administrative Policy, or which could impair their ability to make impartial investment decisions.

2.2.08. Internal Controls and Routine External Review.

The City Treasurer shall develop, implement, and maintain a system of internal controls designed to ensure the effectiveness and efficiency of investment activities, compliance with applicable laws and regulations, and the reliability of financial reporting. Such internal controls shall seek to prevent the loss of public funds due to fraud, error, misrepresentation, and unanticipated market changes.

As a part of their annual review of internal controls, the City’s independent, external auditors shall review internal controls related to investment activities.

2.2.09. Authorized Financial Dealers, Depositories, and Institutions.

In accordance with Government Code Section 53601.5, investments shall either be purchased (1) directly from the issuer, (2) from an institution licensed by the State of California as a Broker-Dealer, as defined in Corporations Code Section 25004, (3) from a member of a federally regulated securities exchange, (4) from a national or state-chartered bank, from a savings association or federal association, as defined ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 5 of 18
by Financial Code Section 5102, or (5) from a brokerage firm designated as a primary government dealer by the Federal Reserve Bank. In addition, investments shall only be purchased from entities or deposits made in qualified public depositories, as established by state law, with full knowledge of applicable state law and at least five years’ experience providing similar services to California municipalities.

The selection of financial dealers, depositories, and institutions shall follow a periodic competitive procurement process (e.g., requests for proposals or requests for qualifications) and be subject to ultimate approval of the City Council or City Manager in accordance with established purchasing regulations and policies. The nature of the competitive procurement process, frequency thereof, and submittals required, shall be designed and determined by the City Treasurer.

On an annual basis, the City Treasurer shall send a copy of the current version of this Administrative Policy to all financial dealers, depositories, and institutions approved to do business with the City. Receipt of this Administrative Policy shall be considered confirmation that the parties to whom they were distributed understand the City’s authorized investment types and requirements thereof.

2.2.10. Authorized Investments.

In accordance with the requirements set forth in this Administrative Policy and in Government Code sections 53601, 53601.6, 53601.8, 53635, 53635.2, 53638, and 53684, the following types of investment are authorized and shall be invested subject to the limits and requirements set forth herein:

Type of Investment
Maximum Amount
of Portfolio
Investment
Maximum
Amount of
Individual
Investment
Minimum Credit
Quality and
Requirements
Maximum
Maturity
Federal Deposit
Insurance
Corporation (FDIC)
Insured Accounts
100% - - N/A
Bankers’
Acceptances
20% (no more than
5% with one bank) - - 180 days
Commercial Paper 15% (no more than
10% of a single issuer) - Standard & Poor’s:AAA or Moody’s: Aaa 270 days Local Government
Investment Pools 90% - See Section 2.2.11 N/A
ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 6 of 18
Type of Investment
Maximum Amount
of Portfolio
Investment
Maximum
Amount of
Individual
Investment
Minimum Credit
Quality and
Requirements
Maximum
Maturity
Joint Powers
Authority Pools 90% -
Must retain an
investment advisor who
is registered with the
Securities and Exchange
Commission (or exempt
from registration), has
assets under
management in excess of
$500 million, and has at
least five years’
experience investing in
instruments authorized
by Government Code
Section 53601,
subdivisions (a) to (o)
N/A
Money Market
Mutual Funds 10% -
Standard & Poor’s AAA
or Moody’s Aaa; and
Must retain an
investment advisor
registered with the
Securities and Exchange
Commission (or exempt
from registration) has
assets under
management in excess of
$500 million, and has at
least five years’
experience investing in
money market
instruments
N/A
Certificates of
Deposit (Negotiable)
30% (no more than
10% with one bank or
issuer)
$250,000
Issued by a nationally or
state-chartered bank, or
state or federal savings
and loan association, as
defined by California
Financial Code Section
5102, and fully insured
by the FDIC or
collateralized in
accordance with Section

2.2.15 5 years Certificates of
Deposit (NonNegotiable) 90%
Repurchase
Agreements
10% (no more than
20% of a single issuer) -
Collateralized in
accordance with Section

2.2.15 30 days
ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 7 of 18
Type of Investment
Maximum Amount
of Portfolio
Investment
Maximum
Amount of
Individual
Investment
Minimum Credit
Quality and
Requirements
Maximum
Maturity
United States
Treasury Obligations 90% of overall
portfolio for any one
investment type (no
more than 20% of a
single issuer)
-
Explicit full faith and
credit guarantee of the
United States
Government
5 years
United States Agency
Obligations -
Implied full faith and
credit guarantee of the
United States
Government
5 years
State of California
and Other Statesissued Obligations
20% of overall
portfolio for any one
investment type (no
more than 5% of a
single issuer)
- - 3 years
California Local
Government-issued
Municipal
Obligations
- - 3 years
Medium-Term Notes 20% -
Nationally Recognized
Statistical Ratings
Organization Rating:
“A” rating category or
its equivalent
5 years

2.2.11. Local Government Investment Pools.

While local government investment pools generally provide significant safety and liquidity, the City Treasurer shall complete a thorough investigation prior to making any such investment and consider the same during the monthly compliance review required by Section 2.2.13. Due diligence in investigations shall generally include a review of written statements of investment policies, objectives, fees schedules, and reporting schedules, as well as issues related to (1) eligible investors and securities, (2) the permitted frequencies and sizes of deposits and withdrawals, (3) security safeguards, including settlement processes, (4) the frequency with which securities are priced and the program audited, (5) the treatment of gains and losses, including interest calculations and distribution, (6) whether and, if so, how reserves, retained earnings, and similar funds are utilized by the investment pool, and (7) whether the investment pool is eligible for and, if so, accepts bond proceeds. In addition, only local government investment pools with at least five years’ experience providing similar services to other California municipalities may be utilized. Similar due diligence and investigative procedures shall be performed prior to investing in any other pooled investment funds, such as money market mutual funds.

ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 8 of 18

2.2.12. Prohibited Investments.

Notwithstanding those types of investments that are otherwise prohibited by law or this Administrative Policy, any investment not specifically listed in Section 2.2.10, as well as financial derivatives (e.g., inverse floaters, range notes, interest only strips derived from a pool of mortgages, and securities that could result in a zero-interest accrual if held to maturity) and foreign investments (e.g., indices and currencies) are prohibited.

2.2.13. Monthly Internal Compliance Review of Investment Portfolio.

Investments shall be in compliance with the ratings and other requirements set forth in this Administrative Policy at the time of purchase. It is acknowledged and understood that some investments may not fully comply with the same following purchase. The City Treasurer shall review the overall investment portfolio on a monthly basis and identify any investments that no longer comply. Non-compliant investments shall be reported to the City Council, City Manager, and City Attorney within 10 business days of discovery and corrected as soon as practical.

2.2.14. Safekeeping and Custody.

All investments shall be registered in the name of the City and all interest, principal payments, and withdrawals shall indicate the City as the sole payee.

All investments, with the exception of Federal Deposit Insurance Corporation (FDIC) Insured Accounts, Local Government Investment Pools, and Money Market Funds shall be held by a third-party custodian designated by the City Treasurer and evidenced by custodial agreements or safekeeping receipts. Third-party custodians shall comply with the requirements set forth in Section 2.2.09.

All security transactions, where applicable, shall use a Delivery-versus-Payment (DVP) settlement procedure with the City’s payment due at the time of delivery, which ensures that securities are deposited with the third-party custodian prior to the release of funds.

2.2.15. Collateralization.

Collateral for bank deposits and certificates of deposit shall be 110% of the market value of principal and accrued interest. Collateral can be either United States Treasury securities or United States Agency securities.

ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 9 of 18
Collateral for repurchase agreements shall be 102% of the market value of principal and accrued interest. Collateral can be either United States Treasury securities or United States Agency securities. The City Treasurer is authorized to grant the right of collateral substitution for repurchase agreements.

All collateral shall be held by an independent third party with whom the City has a current custodial agreement or master repurchase agreement. Evidence of ownership (safekeeping receipt) must be supplied to the City and retained.

2.2.16. Diversification.

The overall investment portfolio shall be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific investment types, maturity segments, or individual financial institutions. In a diversified portfolio, it is acknowledged and understood that occasional measurement losses may occur. Such losses shall be considered within the overall portfolio’s investment return. Diversification also requires investments to be spread among varying security types and institutions.

2.2.17. Reporting.

The City Treasurer shall prepare and submit a monthly investment report to the City Council. The report shall include a summary of all investment transactions for the preceding month, as required by Government Code Section 53607, as well as similar information that would be required by Government Code Section 53646(b) if the City prepared quarterly investment reports, to the extent that such information is available.

The report shall contain, at a minimum, the following information that is subject to this Administrative Policy: the type of investment, issuer, date of maturity, par value and costs of each investment, market value, and a description of any investments, including loans and security lending programs, that are under the management of contracted parties. For funds in local government investment pools, the report shall also include a current market value as of the date of the report and the source of that same valuation. The report shall also comply with Government Accounting Standard Board (GASB) Statement No. 40 and include the following:

A. Certification that all investment actions executed since the last report have been made in full compliance with this Administrative Policy; and ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 10 of 18
B. Certification that the City is able to meet all cash flow needs which might reasonably be anticipated for the next 12 months.

2.2.18. Annual City Council Review and Adoption of this Administrative Policy.

This Administrative Policy shall be reviewed, modified as necessary, and adopted, at least annually, to ensure its consistency with the objectives set forth in Section

2.2.03 and applicable law. The Administrative Policy shall be adopted by resolution of the City Council at a duly noticed public meeting. Such annual review shall be in addition to the reviews conducted by the Investment Policy Review Committee as described in Section 2.2.04.

2.2.19. Relationship to Federal and State Laws.

Where federal orstate laws are more restrictive than or contradict this Administrative Policy, such laws shall take precedence. Where this Administrative Policy is more restrictive than federal or state laws, this Administrative Policy shall take precedence.

The City Treasurer shall advise the Investment Policy Review Committee of any contradictions of federal or state law for consideration during its reviews conducted as described in Section 2.2.04.

2.2.20. Attachments.

Attachment A, “Glossary of Terms and Acronyms,” is incorporated by reference.

Attachment B, “California Municipal Treasurers Association Investment Policy Certification”
City Council Adoption: March XX, 2023
ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 11 of 18
Attachment A, “Glossary of Terms and Acronyms”
This Glossary of Terms and Acronyms contains common investment terminology to provide users with a better understanding of basic investment terms. It is intended to be used as a basic reference only, is not intended to be all inclusive, and should not be treated as a substitute for professional counsel or analysis.

ACCRUED INTEREST: Coupon interest accumulated on a bond or note since the last interest payment or, for a new issue, from the dated date to the date of delivery.

BANK DEPOSITS: Deposits in banks or other depository institutions that may be in the form of demand accounts (checking) or investments in accounts that have a fixed term and negotiated rate of interest.

BANKERS’ ACCEPTANCE: A draft or bill or exchange accepted by a bank or trust company. The accepting institution, as well as the issuer, guarantees payment of the bill.

BOND PROCEEDS: The money paid to the issuer by the purchaser or underwriter of a new issue of municipal securities. These moneys are used to finance the project or purpose for which the securities were issued and to pay certain costs of issuance as may be provided in the bond contract.

BONDS: A debt obligation of a firm or public entity. A bond represents the agreement to repay the debt in principal and, typically, in interest on the principal.

BROKER: A person or firm that acts as an intermediary by purchasing and selling securities for others rather than for its own account.

CASH FLOW: A comparison of cash receipts (revenues) to required payments (debt service, operating expenses, etc.).

CERTIFICATE OF DEPOSIT: A short-term, secured deposit in a financial institution that usually returns principal and interest to the lender at the end of the loan period. Certificates of Deposit (CDs) differ in terms of collateralization and marketability. CDs appropriate to public agency investing include:

Negotiable Certificates of Deposit – Generally, short-term debt instruments that pay interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. The majority of negotiable CDs ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 12 of 18
mature within six months while the average maturity is two weeks. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor). Negotiable CDs are insured by the FDIC up to $250,000, but they are not collateralized beyond that amount.

Non-Negotiable Certificates of Deposit – CDs that carry a penalty if redeemed prior to maturity. A secondary market does exist for non-negotiable CDs, but redemption includes a transaction cost that reduces returns to the investor. Non-negotiable CDs issued by banks and savings and loans are insured by the FDIC up to the amount of $250,000, including principal and interest. Amounts deposited above this amount may be secured with other forms of collateral through an agreement between the investor and the issuer. Collateral may include other securities, including treasuries or agency securities (e.g., issued by the Federal National Mortgage Association).

COLLATERALIZATION OF DEPOSITS: A process by which a bank or other financial institution pledges securities or other deposits for the purpose of securing the repayment of deposited funds.

COMMERCIAL PAPER: An unsecured short-term promissory note issued by corporations or municipalities, with maturities ranging from two to 270 days.

COUNTY POOLED INVESTMENT FUNDS: The aggregate of all funds from public agencies placed in the custody of the county treasurer or chief finance officer for investment and reinvestment.

COUPON: The annual rate of interest that a bond’s issuer promises to pay the bondholder in the bond’s face value; a certificate attached to a bond evidencing interest due on a payment date.

CREDIT RATING: The credit worthiness of an investment. Credit ratings are issued by Nationally Recognized Statistical Rating Organizations (NRSROs) registered with the Securities and Exchange Commission. Three highly recognized NRSROs are Standard and Poor’s, Moody’s, and Fitch. The organizations use a primary letter designation (numbers or symbols may follow the letter designation) to indicate the quality of an investment. As an example, short-term ratings by Standard and Poor’s of A-1+ and Moody’s of P-1 indicate a prime or high-grade quality investment.

Long-term prime or high-grade quality investments would be rated AAA or Aaa by Standard and Poor’s and Moody’s, respectively. Rates beginning with letters B or C would typically indicate an investment of speculative and higher risk quality.

ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 13 of 18
CREDIT RISK: The chance that an issuer will be unable to make scheduled payments of interest and principal on an outstanding obligation. Another concern for investors is that the market’s perception of an issuer/borrower’s credit will cause the market value of a security to fall, even if default is not expected.

CUSTODIAN: A bank or other financial institution that keeps custody of stock certificates and other assets.

DEALER: Someone who acts as a principal in all transactions, including underwriting, buying, and selling securities, including from his/her/their own account.

DELIVERY-VERSUS-PAYMENT (DVP): The payment of cash for securities as they are delivered and accepted for settlement.

DERIVATIVE: Securities that are based on, or derived from, some underlying asset, reference date, or index.

DISCOUNT: The difference between the par value of a security and the cost of the security, when the cost is below par. Investors purchase securities at a discount when return to the investor (yield) is higher than the stated coupon (interest rate) on the investment.

DISCOUNT RATE: The interest rate used in discounted cash flow analysis to determine the present value of future cash flows. The discount rate in discounted cash flow analysis takes into account not just the time value of money, but also the risk or uncertainty of future cash flows; the greater the uncertainty of future cash flows, the higher the discount rate.

DIVERSIFICATION: The allocation of different types of assets in a portfolio to mitigate risks and improve overall portfolio performance.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity.

FIDUCIARY: An individual who holds something in trust for another and bears liability for its safekeeping.

GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB): A standardsetting body, associated with the Financial Accounting Foundation, which prescribes ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 14 of 18
standard accounting practices for governmental units.

INDEX: An indicator that is published on a periodic basis that shows the estimated price and/or yield levels for various groups of securities.

INTEREST: The amount a borrower pays to a lender for the use of his/her/their money.

INTEREST RATE RISK: The risk that an investment's value will change due to a change in the absolute level of interest rates, spread between two rates, shape of the yield curve, or any other interest rate relationship.

JOINT POWERS AUTHORITY POOLS: Investment pools involving the joint exercise of common investment powers between two or more public agencies with shares of beneficial interest issued pursuant to Government Code Section 6509.7.

LIQUIDITY: The measure of the ability to convert an instrument to cash on a given date at full face or par value.

LOCAL AGENCY INVESTMENT FUND (LAIF): A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOLS: Investment pools that include the Local Agency Investment Fund (LAIF) and County Pooled Investment Funds.

These funds are not subject to the same SEC rules applicable to money market mutual funds. For this Administrative Policy, Joint Powers Authority Pools are not considered “Local Government Investment Pools.”
MARKET VALUE: The price at which a security is trading and presumably could be purchased or sold at a particular point in time.

MATURITY: The date on which the principal or stated value of an investment becomes due and payable.

MEDIUM-TERM NOTES: Corporate or depository institution debt securities meeting certain minimum quality standards (as specified in Government Code Section 53601) with a maximum remaining maturity of five years or less, issued by (a) corporations organized and operating within the United States or (b) depository institutions licensed by the United States or any state and operating within the United ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 15 of 18
States. Instruments separately defined in, or authorized by, this Administrative Policy are not considered “Medium-Term Notes.”
MONEY MARKET MUTUAL FUNDS (MMFs): Mutual funds that invest exclusively in short-term money market instruments. MMFs seek the preservation of capital as a primary goal while maintaining a high degree of liquidity and providing income representative of the market for short term investments.

MORTGAGE-BACKED SECURITIES (MBS): Securities created when a mortgagee or a purchaser of residential real estate mortgages creates a pool of mortgages and markets undivided interests or participations in the pool. MBS owners receive a pro-rata share of the interest and principal cash flows (net of fees) that are “passed through” from the pool of mortgages. MBS are complex securities whose cash flow is determined by the characteristics of the mortgages that are pooled together. Investors in MBS face prepayment risk associated with the option of the underlying mortgagors to pre-pay or payoff their mortgage. Most MBS are issued and/or guaranteed by federal agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

MUNICIPAL NOTES, BONDS, AND OTHER OBLIGATIONS: Obligations issued by state and local governments to finance capital and operating expenses.

MUTUAL FUNDS: An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments.

NATIONALLY RECOGNIZED STATISTICAL RATINGS ORGANIZATION
(NRSRO): A credit rating agency registered as a “Nationally Recognized Statistical Ratings Organization” with the Securities and Exchange Commission, consistent with the Credit Rating Agency Reform Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and other applicable legislation and rulemaking, as may change from time-to-time.

NEW ISSUE: Securities sold during the initial distribution of an issue in a primary offering by the underwriter or underwriting syndicate.

NOTE: A written promise to pay a specified amount to a certain entity on demand or on a specified date. Usually bearing a short-term maturity of a year or less (though longer maturities are issued—see “Medium-Term Notes”).

ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 16 of 18
PAR VALUE: The principal amount of a note or bond which must be paid at maturity. Par, also referred to as the “face amount” of a security, is the principal value stated on the face of the security. A par bond is one sold at a price of 100 percent of its principal amount.

PORTFOLIO: Combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset. The purpose of a portfolio is to reduce risk by diversification.

PREMIUM: The difference between the par value of a security and the cost of the security, when the cost is above par. Investors pay a premium to purchase a security when the return to the investor (yield) is lower than the stated coupon (interest rate) on the investment.

PRICE: The amount of monetary consideration required by a willing seller and a willing buyer to sell an investment on a particular date.

PRINCIPAL: The face value or par value of a debt instrument, or the amount of capital invested in a given security.

PRUDENT INVESTOR STANDARD: A standard of conduct where a person acts with care, skill, prudence, and diligence when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. The test of whether the standard is being met is if a prudent person acting in such a situation would engage in similar conduct to ensure that investments safeguard principal and maintain liquidity.

REPURCHASE AGREEMENTS: An agreement of one party (for example, a financial institution) to sell securities to a second party (such as a local agency) and simultaneous agreement by the first party to repurchase the securities at a specified price from the second party on demand or at a specified date.

RISK: The uncertainty of maintaining the principal or interest associated with an investment due to a variety of factors.

SAFEKEEPING SERVICE: Offers storage and protection of assets provided by an institution serving as an agent.

SAFETY: In the context of investing public funds, safety relates to preserving the principal of an investment in an investment portfolio; local agencies address the concerns of safety by controlling exposure to risks.

ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 17 of 18
SECURITIES AND EXCHANGE COMMISSION (SEC): The federal agency responsible for supervising and regulating the securities industry.

TRUSTEE OR TRUST COMPANY: A financial institution with powers to act in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract.

UNDERWRITER: A dealer that purchases a new issue of municipal securities for resale.

UNITED STATES AGENCY OBLIGATIONS: Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises, including federal agency mortgage-backed securities. Types of instruments may include mortgagebacked securities from the Federal National Mortgage Association (FNMA) including Fannie Mae and Freddie Mac securities.

UNITED STATES TREASURY OBLIGATIONS: Debt obligations of the United States government sold by the Treasury Department in the forms of bills, notes, and bonds. Bills are short-term obligations that mature in one year or less and are sold at a discount. Notes are obligations that mature between one year and 10 years. Bonds are long-term obligations that generally mature in 10 years or more.

YIELD: The current rate of return on an investment security generally expressed as a percentage of the securities current price.

YIELD CURVE: A graphic representation that shows the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity.

ITEM 6.4 – Exhibit A to Attachment A
Administrative Policy 2.2 - Page 18 of 18
Attachment B, “California Municipal Treasurers Association Investment Policy Certification”
The City’s Investment of Financial Assets policy, as adopted by the City Council on April 4, 2022, was certified by the California Municipal Treasurers Association (CMTA) on June 27, 2022.

Since receiving certification, the City’s modifications of the Investment of Financial Assets policy have been limited to updating this Attachment B and increasing the maximum amount of portfolio investment for non-negotiable certificates of deposit.

ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 1 of 18

CITY OF LAGUNA WOODS
ADMINISTRATIVE POLICY 2.2

INVESTMENT OF FINANCIAL ASSETS

2.2.01. Statement of Purpose.

This Administrative Policy is intended to assist the City of Laguna Woods with the investment of the City’s financial assets in a manner that ensures adequate safety and liquidity, while maximizing yield (return) and complying with the requirements of California Government Code sections 53600 and 53635 et seq.

2.2.02. Scope.

This Administrative Policy generally applies to all financial assets and investment activities of the City. Such funds are accounted for, or disclosed, in annual audited financial statements and include the General Fund, Special Revenue Funds, and the Capital Projects Fund. Funds belonging to the Laguna Woods Civic Support Fund and funds invested separately with independent fiduciaries, including funds held and managed by the California Public Employees’ Retirement System (CalPERS) for the purpose of funding employee retirement obligations and other post-employment benefits (OPEB) are exempt from this Administrative Policy.

2.2.03. Objectives.

The objectives of the City’s investment activities, in priority order, shall be:

1. Safety – Safety of principal shall be the foremost objective. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall investment portfolio and the mitigation of credit risk and interest rate risk. This Administrative Policy recognizes that market conditions may warrant the sale of individual securities that would incur market losses in order to protect from further capital losses. The intent of this Administrative Policy is to ensure that capital losses are minimized on a portfolio level rather than on each transaction. To attain the safety objective, diversification of investments among a variety of securities with independent returns and institutions is required.

2. Liquidity – The investment portfolio shall remain sufficiently liquid (i.e., capable of being converted to cash quickly) in order to enable the City to meet all reasonably anticipated cash demands and operational requirements and to ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 2 of 18
maintain compliance with all applicable indenture agreements. Since unusual or unanticipated cash demands and operational requirements may occur from time-to-time, the portfolio shall primarily consist of investments in securities with active secondary and resale markets.

3. Yield (Return) – The investment portfolio shall be designed in a manner that seeks to attain the highest rate of return, consistent with established safety and liquidity objectives. While it is acknowledged and understood that occasional measurement losses may occur, the rate of return on the investment portfolio should be designed to attain a market rate of return throughout budgetary and economic cycles for similar investments.

2.2.04. Delegation of Authority.

City Treasurer
No person other than the City Treasurer or Acting City Treasurer (hereafter referred to jointly as the “City Treasurer”) shall engage in an investment transaction using the City’s financial assets. The City Treasurer shall additionally be responsible for all investment transactions undertaken and shall establish and maintain a system of internal controls to regulate all investing activities.

In accordance with Government Code Section 53607, the City Council delegates investment authority for a one-year period to the City Treasurer. Such delegation of authority is subject to annual review and renewal by the City Council, as well as revocation at the City Council’s discretion. Adoption of this Administrative Policy shall constitute renewal of such delegation for an additional one-year period.

Pursuant to Laguna Woods Municipal Code Section 2.10.010, the City Treasurer is appointed by, and reports to, the City Manager. The City Manager may serve as, or appoint, an Acting City Treasurer at any time during the absence of a permanent City Treasurer. During his/her/their appointment, the Acting City Treasurer shall have all of the powers and duties of the City Treasurer.

The City Treasurer and City Manager (with respect to his/her/their role appointing and supervising the City Treasurer, and participating in investment decisions) shall be relieved of personal responsibility for an individual investment’s performance or losses, market price changes, and the performance of or losses incurred by the overall portfolio provided that (1) actions were undertaken in accordance with this Administrative Policy and applicable federal and state law, (2) significant deviations ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 3 of 18
from expectations were reported to the City Council in a timely manner, and (3) appropriate action was taken to mitigate future adverse developments.

Investment Policy Review Committee of the City Council
The Investment Policy Review Committee shall be responsible for conducting at least biannual reviews of the adequacy and effectiveness of this Administrative Policy and preparing related recommendations for City Council consideration.

The City Council shall appoint two of its members to serve on the Investment Policy Review Committee for terms two calendar years in length, commencing on January 1 of each odd-numbered year. The City Council reserves the right to remove or replace any member of the Investment Policy Review Committee, with or without cause, following a publicly noticed vote of a majority of the quorum of City Councilmembers present at the time.

The Investment Policy Review Committee shall be considered a standing committee, subject to all applicable provisions of the Ralph M. Brown Act.

2.2.05. Public Trust.

The City Council, City Manager, City Treasurer, and all individuals authorized to participate in investment decisions on behalf of the City shall act as custodians of the public trust and recognize that the investment portfolio is subject to public review and evaluation. The City’s overall approach to investment shall be designed and managed with a degree of professionalism that is worthy of the public trust and will avoid any transactions that might impair public confidence.

2.2.06. Prudence.

The City Council, City Manager, City Treasurer, and all individuals authorized to participate in investment decisions on behalf of the City, are considered to be trustees and, therefore, fiduciaries subject to the prudent investor standard. The prudent investor standard is summarized in Government Code Section 53600.3, as follows:

All governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 4 of 18
a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.

2.2.07. Ethics and Conflicts of Interest.

As set forth in the City’s Conflict of Interest Policy, and as otherwise required by the Political Reform Act and Fair Political Practices Commission, public officials who manage public investments are required to file economic interest disclosures.

In addition to federal, state and local statutes relating to conflicts of interest, the City Council, City Manager, City Treasurer, and all individuals authorized to participate in investment decisions on behalf of the City shall refrain from personal business association or activity that conflicts with proper execution of this Administrative Policy, or which could impair their ability to make impartial investment decisions.

2.2.08. Internal Controls and Routine External Review.

The City Treasurer shall develop, implement, and maintain a system of internal controls designed to ensure the effectiveness and efficiency of investment activities, compliance with applicable laws and regulations, and the reliability of financial reporting. Such internal controls shall seek to prevent the loss of public funds due to fraud, error, misrepresentation, and unanticipated market changes.

As a part of their annual review of internal controls, the City’s independent, external auditors shall review internal controls related to investment activities.

2.2.09. Authorized Financial Dealers, Depositories, and Institutions.

In accordance with Government Code Section 53601.5, investments shall either be purchased (1) directly from the issuer, (2) from an institution licensed by the State of California as a Broker-Dealer, as defined in Corporations Code Section 25004, (3) from a member of a federally regulated securities exchange, (4) from a national or state-chartered bank, from a savings association or federal association, as defined ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 5 of 18
by Financial Code Section 5102, or (5) from a brokerage firm designated as a primary government dealer by the Federal Reserve Bank. In addition, investments shall only be purchased from entities or deposits made in qualified public depositories, as established by state law, with full knowledge of applicable state law and at least five years’ experience providing similar services to California municipalities.

The selection of financial dealers, depositories, and institutions shall follow a periodic competitive procurement process (e.g., requests for proposals or requests for qualifications) and be subject to ultimate approval of the City Council or City Manager in accordance with established purchasing regulations and policies. The nature of the competitive procurement process, frequency thereof, and submittals required, shall be designed and determined by the City Treasurer.

On an annual basis, the City Treasurer shall send a copy of the current version of this Administrative Policy to all financial dealers, depositories, and institutions approved to do business with the City. Receipt of this Administrative Policy shall be considered confirmation that the parties to whom they were distributed understand the City’s authorized investment types and requirements thereof.

2.2.10. Authorized Investments.

In accordance with the requirements set forth in this Administrative Policy and in Government Code sections 53601, 53601.6, 53601.8, 53635, 53635.2, 53638, and 53684, the following types of investment are authorized and shall be invested subject to the limits and requirements set forth herein:

Type of Investment
Maximum Amount
of Portfolio
Investment
Maximum
Amount of
Individual
Investment
Minimum Credit
Quality and
Requirements
Maximum
Maturity
Federal Deposit
Insurance
Corporation (FDIC)
Insured Accounts
100% - - N/A
Bankers’
Acceptances
20% (no more than
5% with one bank) - - 180 days
Commercial Paper 15% (no more than
10% of a single issuer) - Standard & Poor’s:AAA or Moody’s: Aaa 270 days Local Government
Investment Pools 90% - See Section 2.2.11 N/A
ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 6 of 18
Type of Investment
Maximum Amount
of Portfolio
Investment
Maximum
Amount of
Individual
Investment
Minimum Credit
Quality and
Requirements
Maximum
Maturity
Joint Powers
Authority Pools 90% -
Must retain an
investment advisor who
is registered with the
Securities and Exchange
Commission (or exempt
from registration), has
assets under
management in excess of
$500 million, and has at
least five years’
experience investing in
instruments authorized
by Government Code
Section 53601,
subdivisions (a) to (o)
N/A
Money Market
Mutual Funds 10% -
Standard & Poor’s AAA
or Moody’s Aaa; and
Must retain an
investment advisor
registered with the
Securities and Exchange
Commission (or exempt
from registration) has
assets under
management in excess of
$500 million, and has at
least five years’
experience investing in
money market
instruments
N/A
Certificates of
Deposit (Negotiable
and Non-Negotiable)
30% (no more than
10% with one bank or
issuer)
$250,000
Issued by a nationally or
state-chartered bank, or
state or federal savings
and loan association, as
defined by California
Financial Code Section
5102, and fully insured
by the FDIC or
collateralized in
accordance with Section

2.2.15 5 years Certificates of
Deposit (NonNegotiable) 90%
Repurchase
Agreements
10% (no more than
20% of a single issuer) -
Collateralized in
accordance with Section

2.2.15 30 days
ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 7 of 18
Type of Investment
Maximum Amount
of Portfolio
Investment
Maximum
Amount of
Individual
Investment
Minimum Credit
Quality and
Requirements
Maximum
Maturity
United States
Treasury Obligations 90% of overall
portfolio for any one
investment type (no
more than 20% of a
single issuer)
-
Explicit full faith and
credit guarantee of the
United States
Government
5 years
United States Agency
Obligations -
Implied full faith and
credit guarantee of the
United States
Government
5 years
State of California
and Other Statesissued Obligations
20% of overall
portfolio for any one
investment type (no
more than 5% of a
single issuer)
- - 3 years
California Local
Government-issued
Municipal
Obligations
- - 3 years
Medium-Term Notes 20% -
Nationally Recognized
Statistical Ratings
Organization Rating:
“A” rating category or
its equivalent
5 years

2.2.11. Local Government Investment Pools.

While local government investment pools generally provide significant safety and liquidity, the City Treasurer shall complete a thorough investigation prior to making any such investment and consider the same during the monthly compliance review required by Section 2.2.13. Due diligence in investigations shall generally include a review of written statements of investment policies, objectives, fees schedules, and reporting schedules, as well as issues related to (1) eligible investors and securities, (2) the permitted frequencies and sizes of deposits and withdrawals, (3) security safeguards, including settlement processes, (4) the frequency with which securities are priced and the program audited, (5) the treatment of gains and losses, including interest calculations and distribution, (6) whether and, if so, how reserves, retained earnings, and similar funds are utilized by the investment pool, and (7) whether the investment pool is eligible for and, if so, accepts bond proceeds. In addition, only local government investment pools with at least five years’ experience providing similar services to other California municipalities may be utilized. Similar due diligence and investigative procedures shall be performed prior to investing in any other pooled investment funds, such as money market mutual funds.

ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 8 of 18

2.2.12. Prohibited Investments.

Notwithstanding those types of investments that are otherwise prohibited by law or this Administrative Policy, any investment not specifically listed in Section 2.2.10, as well as financial derivatives (e.g., inverse floaters, range notes, interest only strips derived from a pool of mortgages, and securities that could result in a zero-interest accrual if held to maturity) and foreign investments (e.g., indices and currencies) are prohibited.

2.2.13. Monthly Internal Compliance Review of Investment Portfolio.

Investments shall be in compliance with the ratings and other requirements set forth in this Administrative Policy at the time of purchase. It is acknowledged and understood that some investments may not fully comply with the same following purchase. The City Treasurer shall review the overall investment portfolio on a monthly basis and identify any investments that no longer comply. Non-compliant investments shall be reported to the City Council, City Manager, and City Attorney within 10 business days of discovery and corrected as soon as practical.

2.2.14. Safekeeping and Custody.

All investments shall be registered in the name of the City and all interest, principal payments, and withdrawals shall indicate the City as the sole payee.

All investments, with the exception of Federal Deposit Insurance Corporation (FDIC) Insured Accounts, Local Government Investment Pools, and Money Market Funds shall be held by a third-party custodian designated by the City Treasurer and evidenced by custodial agreements or safekeeping receipts. Third-party custodians shall comply with the requirements set forth in Section 2.2.09.

All security transactions, where applicable, shall use a Delivery-versus-Payment (DVP) settlement procedure with the City’s payment due at the time of delivery, which ensures that securities are deposited with the third-party custodian prior to the release of funds.

2.2.15. Collateralization.

Collateral for bank deposits and certificates of deposit shall be 110% of the market value of principal and accrued interest. Collateral can be either United States Treasury securities or United States Agency securities.

ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 9 of 18
Collateral for repurchase agreements shall be 102% of the market value of principal and accrued interest. Collateral can be either United States Treasury securities or United States Agency securities. The City Treasurer is authorized to grant the right of collateral substitution for repurchase agreements.

All collateral shall be held by an independent third party with whom the City has a current custodial agreement or master repurchase agreement. Evidence of ownership (safekeeping receipt) must be supplied to the City and retained.

2.2.16. Diversification.

The overall investment portfolio shall be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific investment types, maturity segments, or individual financial institutions. In a diversified portfolio, it is acknowledged and understood that occasional measurement losses may occur. Such losses shall be considered within the overall portfolio’s investment return. Diversification also requires investments to be spread among varying security types and institutions.

2.2.17. Reporting.

The City Treasurer shall prepare and submit a monthly investment report to the City Council. The report shall include a summary of all investment transactions for the preceding month, as required by Government Code Section 53607, as well as similar information that would be required by Government Code Section 53646(b) if the City prepared quarterly investment reports, to the extent that such information is available.

The report shall contain, at a minimum, the following information that is subject to this Administrative Policy: the type of investment, issuer, date of maturity, par value and costs of each investment, market value, and a description of any investments, including loans and security lending programs, that are under the management of contracted parties. For funds in local government investment pools, the report shall also include a current market value as of the date of the report and the source of that same valuation. The report shall also comply with Government Accounting Standard Board (GASB) Statement No. 40 and include the following:

A. Certification that all investment actions executed since the last report have been made in full compliance with this Administrative Policy; and ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 10 of 18
B. Certification that the City is able to meet all cash flow needs which might reasonably be anticipated for the next 12 months.

2.2.18. Annual City Council Review and Adoption of this Administrative Policy.

This Administrative Policy shall be reviewed, modified as necessary, and adopted, at least annually, to ensure its consistency with the objectives set forth in Section

2.2.03 and applicable law. The Administrative Policy shall be adopted by resolution of the City Council at a duly noticed public meeting. Such annual review shall be in addition to the reviews conducted by the Investment Policy Review Committee as described in Section 2.2.04.

2.2.19. Relationship to Federal and State Laws.

Where federal orstate laws are more restrictive than or contradict this Administrative Policy, such laws shall take precedence. Where this Administrative Policy is more restrictive than federal or state laws, this Administrative Policy shall take precedence.

The City Treasurer shall advise the Investment Policy Review Committee of any contradictions of federal or state law for consideration during its reviews conducted as described in Section 2.2.04.

2.2.20. Attachments.

Attachment A, “Glossary of Terms and Acronyms,” is incorporated by reference.

Attachment B, “California Municipal Treasurers Association Investment Policy Certification”
City Council Adoption: September 21, 2022March XX, 2023 ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 11 of 18
Attachment A, “Glossary of Terms and Acronyms”
This Glossary of Terms and Acronyms contains common investment terminology to provide users with a better understanding of basic investment terms. It is intended to be used as a basic reference only, is not intended to be all inclusive, and should not be treated as a substitute for professional counsel or analysis.

ACCRUED INTEREST: Coupon interest accumulated on a bond or note since the last interest payment or, for a new issue, from the dated date to the date of delivery.

BANK DEPOSITS: Deposits in banks or other depository institutions that may be in the form of demand accounts (checking) or investments in accounts that have a fixed term and negotiated rate of interest.

BANKERS’ ACCEPTANCE: A draft or bill or exchange accepted by a bank or trust company. The accepting institution, as well as the issuer, guarantees payment of the bill.

BOND PROCEEDS: The money paid to the issuer by the purchaser or underwriter of a new issue of municipal securities. These moneys are used to finance the project or purpose for which the securities were issued and to pay certain costs of issuance as may be provided in the bond contract.

BONDS: A debt obligation of a firm or public entity. A bond represents the agreement to repay the debt in principal and, typically, in interest on the principal.

BROKER: A person or firm that acts as an intermediary by purchasing and selling securities for others rather than for its own account.

CASH FLOW: A comparison of cash receipts (revenues) to required payments (debt service, operating expenses, etc.).

CERTIFICATE OF DEPOSIT: A short-term, secured deposit in a financial institution that usually returns principal and interest to the lender at the end of the loan period. Certificates of Deposit (CDs) differ in terms of collateralization and marketability. CDs appropriate to public agency investing include:

Negotiable Certificates of Deposit – Generally, short-term debt instruments that pay interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. The majority of negotiable CDs ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 12 of 18
mature within six months while the average maturity is two weeks. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor). Negotiable CDs are insured by the FDIC up to $250,000, but they are not collateralized beyond that amount.

Non-Negotiable Certificates of Deposit – CDs that carry a penalty if redeemed prior to maturity. A secondary market does exist for non-negotiable CDs, but redemption includes a transaction cost that reduces returns to the investor. Non-negotiable CDs issued by banks and savings and loans are insured by the FDIC up to the amount of $250,000, including principal and interest. Amounts deposited above this amount may be secured with other forms of collateral through an agreement between the investor and the issuer. Collateral may include other securities, including treasuries or agency securities (e.g., issued by the Federal National Mortgage Association).

COLLATERALIZATION OF DEPOSITS: A process by which a bank or other financial institution pledges securities or other deposits for the purpose of securing the repayment of deposited funds.

COMMERCIAL PAPER: An unsecured short-term promissory note issued by corporations or municipalities, with maturities ranging from two to 270 days.

COUNTY POOLED INVESTMENT FUNDS: The aggregate of all funds from public agencies placed in the custody of the county treasurer or chief finance officer for investment and reinvestment.

COUPON: The annual rate of interest that a bond’s issuer promises to pay the bondholder in the bond’s face value; a certificate attached to a bond evidencing interest due on a payment date.

CREDIT RATING: The credit worthiness of an investment. Credit ratings are issued by Nationally Recognized Statistical Rating Organizations (NRSROs) registered with the Securities and Exchange Commission. Three highly recognized NRSROs are Standard and Poor’s, Moody’s, and Fitch. The organizations use a primary letter designation (numbers or symbols may follow the letter designation) to indicate the quality of an investment. As an example, short-term ratings by Standard and Poor’s of A-1+ and Moody’s of P-1 indicate a prime or high-grade quality investment.

Long-term prime or high-grade quality investments would be rated AAA or Aaa by Standard and Poor’s and Moody’s, respectively. Rates beginning with letters B or C would typically indicate an investment of speculative and higher risk quality.

ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 13 of 18
CREDIT RISK: The chance that an issuer will be unable to make scheduled payments of interest and principal on an outstanding obligation. Another concern for investors is that the market’s perception of an issuer/borrower’s credit will cause the market value of a security to fall, even if default is not expected.

CUSTODIAN: A bank or other financial institution that keeps custody of stock certificates and other assets.

DEALER: Someone who acts as a principal in all transactions, including underwriting, buying, and selling securities, including from his/her/their own account.

DELIVERY-VERSUS-PAYMENT (DVP): The payment of cash for securities as they are delivered and accepted for settlement.

DERIVATIVE: Securities that are based on, or derived from, some underlying asset, reference date, or index.

DISCOUNT: The difference between the par value of a security and the cost of the security, when the cost is below par. Investors purchase securities at a discount when return to the investor (yield) is higher than the stated coupon (interest rate) on the investment.

DISCOUNT RATE: The interest rate used in discounted cash flow analysis to determine the present value of future cash flows. The discount rate in discounted cash flow analysis takes into account not just the time value of money, but also the risk or uncertainty of future cash flows; the greater the uncertainty of future cash flows, the higher the discount rate.

DIVERSIFICATION: The allocation of different types of assets in a portfolio to mitigate risks and improve overall portfolio performance.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that insures bank deposits, currently up to $250,000 per entity.

FIDUCIARY: An individual who holds something in trust for another and bears liability for its safekeeping.

GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB): A standardsetting body, associated with the Financial Accounting Foundation, which prescribes ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 14 of 18
standard accounting practices for governmental units.

INDEX: An indicator that is published on a periodic basis that shows the estimated price and/or yield levels for various groups of securities.

INTEREST: The amount a borrower pays to a lender for the use of his/her/their money.

INTEREST RATE RISK: The risk that an investment's value will change due to a change in the absolute level of interest rates, spread between two rates, shape of the yield curve, or any other interest rate relationship.

JOINT POWERS AUTHORITY POOLS: Investment pools involving the joint exercise of common investment powers between two or more public agencies with shares of beneficial interest issued pursuant to Government Code Section 6509.7.

LIQUIDITY: The measure of the ability to convert an instrument to cash on a given date at full face or par value.

LOCAL AGENCY INVESTMENT FUND (LAIF): A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOLS: Investment pools that include the Local Agency Investment Fund (LAIF) and County Pooled Investment Funds.

These funds are not subject to the same SEC rules applicable to money market mutual funds. For this Administrative Policy, Joint Powers Authority Pools are not considered “Local Government Investment Pools.”
MARKET VALUE: The price at which a security is trading and presumably could be purchased or sold at a particular point in time.

MATURITY: The date on which the principal or stated value of an investment becomes due and payable.

MEDIUM-TERM NOTES: Corporate or depository institution debt securities meeting certain minimum quality standards (as specified in Government Code Section 53601) with a maximum remaining maturity of five years or less, issued by (a) corporations organized and operating within the United States or (b) depository institutions licensed by the United States or any state and operating within the United ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 15 of 18
States. Instruments separately defined in, or authorized by, this Administrative Policy are not considered “Medium-Term Notes.”
MONEY MARKET MUTUAL FUNDS (MMFs): Mutual funds that invest exclusively in short-term money market instruments. MMFs seek the preservation of capital as a primary goal while maintaining a high degree of liquidity and providing income representative of the market for short term investments.

MORTGAGE-BACKED SECURITIES (MBS): Securities created when a mortgagee or a purchaser of residential real estate mortgages creates a pool of mortgages and markets undivided interests or participations in the pool. MBS owners receive a pro-rata share of the interest and principal cash flows (net of fees) that are “passed through” from the pool of mortgages. MBS are complex securities whose cash flow is determined by the characteristics of the mortgages that are pooled together. Investors in MBS face prepayment risk associated with the option of the underlying mortgagors to pre-pay or payoff their mortgage. Most MBS are issued and/or guaranteed by federal agencies and instrumentalities (e.g., Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA), and Federal Home Loan Mortgage Corporation (FHLMC)).

MUNICIPAL NOTES, BONDS, AND OTHER OBLIGATIONS: Obligations issued by state and local governments to finance capital and operating expenses.

MUTUAL FUNDS: An investment company that pools money and can invest in a variety of securities, including fixed-income securities and money market instruments.

NATIONALLY RECOGNIZED STATISTICAL RATINGS ORGANIZATION
(NRSRO): A credit rating agency registered as a “Nationally Recognized Statistical Ratings Organization” with the Securities and Exchange Commission, consistent with the Credit Rating Agency Reform Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, and other applicable legislation and rulemaking, as may change from time-to-time.

NEW ISSUE: Securities sold during the initial distribution of an issue in a primary offering by the underwriter or underwriting syndicate.

NOTE: A written promise to pay a specified amount to a certain entity on demand or on a specified date. Usually bearing a short-term maturity of a year or less (though longer maturities are issued—see “Medium-Term Notes”).

ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 16 of 18
PAR VALUE: The principal amount of a note or bond which must be paid at maturity. Par, also referred to as the “face amount” of a security, is the principal value stated on the face of the security. A par bond is one sold at a price of 100 percent of its principal amount.

PORTFOLIO: Combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset. The purpose of a portfolio is to reduce risk by diversification.

PREMIUM: The difference between the par value of a security and the cost of the security, when the cost is above par. Investors pay a premium to purchase a security when the return to the investor (yield) is lower than the stated coupon (interest rate) on the investment.

PRICE: The amount of monetary consideration required by a willing seller and a willing buyer to sell an investment on a particular date.

PRINCIPAL: The face value or par value of a debt instrument, or the amount of capital invested in a given security.

PRUDENT INVESTOR STANDARD: A standard of conduct where a person acts with care, skill, prudence, and diligence when investing, reinvesting, purchasing, acquiring, exchanging, selling, and managing funds. The test of whether the standard is being met is if a prudent person acting in such a situation would engage in similar conduct to ensure that investments safeguard principal and maintain liquidity.

REPURCHASE AGREEMENTS: An agreement of one party (for example, a financial institution) to sell securities to a second party (such as a local agency) and simultaneous agreement by the first party to repurchase the securities at a specified price from the second party on demand or at a specified date.

RISK: The uncertainty of maintaining the principal or interest associated with an investment due to a variety of factors.

SAFEKEEPING SERVICE: Offers storage and protection of assets provided by an institution serving as an agent.

SAFETY: In the context of investing public funds, safety relates to preserving the principal of an investment in an investment portfolio; local agencies address the concerns of safety by controlling exposure to risks.

ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 17 of 18
SECURITIES AND EXCHANGE COMMISSION (SEC): The federal agency responsible for supervising and regulating the securities industry.

TRUSTEE OR TRUST COMPANY: A financial institution with powers to act in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract.

UNDERWRITER: A dealer that purchases a new issue of municipal securities for resale.

UNITED STATES AGENCY OBLIGATIONS: Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises, including federal agency mortgage-backed securities. Types of instruments may include mortgagebacked securities from the Federal National Mortgage Association (FNMA) including Fannie Mae and Freddie Mac securities.

UNITED STATES TREASURY OBLIGATIONS: Debt obligations of the United States government sold by the Treasury Department in the forms of bills, notes, and bonds. Bills are short-term obligations that mature in one year or less and are sold at a discount. Notes are obligations that mature between one year and 10 years. Bonds are long-term obligations that generally mature in 10 years or more.

YIELD: The current rate of return on an investment security generally expressed as a percentage of the securities current price.

YIELD CURVE: A graphic representation that shows the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity.

ITEM 6.4 – Attachment B
Administrative Policy 2.2 - Page 18 of 18
Attachment B, “California Municipal Treasurers Association Investment Policy Certification”
The City’s Investment of Financial Assets policy, as adopted by the City Council on April 4, 2022, was certified by the California Municipal Treasurers Association (CMTA) on June 27, 2022.

Since receiving certification, the City’s modifications of the Investment of Financial Assets policy have been limited to updating this Attachment B and increasing the maximum amount of portfolio investment for non-negotiable certificates of deposit.

6.5 FEDERAL AND STATE DISASTER FINANCIAL

ASSISTANCE
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ITEM 6.5
R 23-XX 1 XX-XX-2023
RESOLUTION NO. 23-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA
WOODS, CALIFORNIA, REPEALING RESOLUTION NO. 20-07 AND

MAKING DESIGNATIONS AND AUTHORIZATIONS RELATED TO

APPLICATIONS FOR AND EXECUTION OF FEDERAL AND STATE

DISASTER FINANCIAL ASSISTANCE
WHEREAS, the State of California requires all non-state agency applicants for federal financial assistance under Public Law (“P.L.”) 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act, to designate authorized agents for the same by resolution approved by the respective governing body within three years preceding the date of any application for such financial assistance; and
WHEREAS, the City’s most recent designations and authorizations were made by Resolution No. 20-07.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. Resolution No. 20-07 is hereby repealed.

SECTION 2. The City Manager and Administrative Services Director/City Treasurer (“City Agents”) are hereby authorized to execute for and on behalf of the City of Laguna Woods, a public entity established under the laws of the State of California, any actions necessary for the purpose of obtaining federal assistance under P.L. 93-288 as amended by the Robert T. Stafford Disaster Relief and Emergency Assistance Act of 1988, and/or state financial assistance under the California Disaster Assistance Act. This authorization includes, but is not limited to, the execution and provision of any assurances and agreements required, as well as California Governor’s Office of Emergency Services (“Cal OES”) Form 130 (Designation of Applicant’s Agent Resolution for Non-State Agencies).

SECTION 3. The City Agents are hereby authorized to provide to the State of California and Cal OES for all matters pertaining to disaster financial assistance, the assurances and agreements required.

ITEM 6.5
R 23-XX 2 XX-XX-2023
SECTION 4. The City Agents, City Clerk, and such other City staff as may be necessary, are hereby authorized to execute and file Cal OES Form 130 with the State of California, consistent with this resolution.

SECTION 5. This resolution is a universal resolution and is effective for all open and future disasters up to three years following its date of approval.

SECTION 6. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

PASSED, APPROVED AND ADOPTED on this XX day of XX 2023. _______________________________
CYNTHIA S. CONNERS, Mayor
ATTEST:
________________________________
YOLIE TRIPPY, CMC, City Clerk

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, YOLIE TRIPPY, City Clerk of the City of Laguna Woods, do HEREBY CERTIFY that the foregoing Resolution No. 23-XX was duly adopted by the City Council of the City of Laguna Woods at an adjourned regular meeting thereof, held on the XX day of XX 2023, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________________
YOLIE TRIPPY, CMC, City Clerk

6.6 TREE PRUNING AND REMOVAL SERVICES
This page is intentionally blank.

ITEM 6.6

AGREEMENT FOR CONSULTANT SERVICES

BETWEEN THE

CITY OF LAGUNA WOODS
AND
GREAT SCOTT TREE SERVICE, INC.

FOR TREE PRUNING AND REMOVAL SERVICES
This AGREEMENT FOR CONSULTANT SERVICES ("AGREEMENT"), is made and entered into this ________________ ("EFFECTIVE DATE"), by and among the City of Laguna Woods, a California municipal corporation ("CITY"), and Great Scott Tree Service, Inc. ("CONSULTANT").

In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

SECTION 1. TERM OF AGREEMENT.

Subject to the provisions of SECTION 17 "TERMINATION OF AGREEMENT" of this AGREEMENT, the term of this AGREEMENT shall be for a period beginning on April 1, 2023 and ending at 11:59 p.m. on March 31, 2024. Such term may be extended upon written agreement of both parties to this AGREEMENT.

SECTION 2. SCOPE OF SERVICES.

CONSULTANT shall perform the services set forth in EXHIBIT "A" "SCOPE OF SERVICES" and made a part of this AGREEMENT. All work to be performed by CONSULTANT shall be coordinated with, and approved by City Manager of CITY or his or her designee. CONSULTANT shall not begin work on any individual task or assignment until authorized by the City Manager of CITY or his or her designee to proceed.

SECTION 3. ADDITIONAL SERVICES.

CONSULTANT shall not be compensated for any services rendered in connection with its performance of this AGREEMENT which are in addition to or outside of those set forth in this AGREEMENT or listed in EXHIBIT "A" "SCOPE OF SERVICES", unless such additional services are authorized in advance and in writing by the City Council or the City Manager of CITY or his or her designee. CONSULTANT shall be compensated for any such additional services only in the amounts and in the manner agreed to by the City Council or City Manager of CITY or his or her designee.

SECTION 4. COMPENSATION AND METHOD OF PAYMENT.
(a) Subject to any limitations set forth in this AGREEMENT, CITY agrees to pay CONSULTANT the amounts specified in EXHIBIT "B" "COMPENSATION" and made a part of this AGREEMENT. CONSULTANT shall perform work only as requested by CITY. This ITEM 6.6

AGREEMENT does not state, convey, imply, or infer a specific, minimum or expected amount of work or compensation for as needed services or reimbursables. Compensation for services shall not exceed the amounts specified in EXHIBIT "B" "COMPENSATION". (b) No later than the 15th of each month CONSULTANT shall furnish to CITY an original invoice for all work performed and expenses incurred during the preceding month. The invoice shall detail charges by the categories required by CITY, which are subject to change at the discretion of CITY. CITY shall independently review each invoice submitted by the CONSULTANT to determine whether the work performed and expenses incurred are in compliance with the provisions of this AGREEMENT. In the event that no charges or expenses are disputed, the invoice shall be approved and paid according to the terms set forth in subsection (c). In the event that any charges or expenses are disputed by CITY, the original invoice shall be returned by CITY to CONSULTANT for correction and resubmission. (c) Except as to any charges for work performed or expenses incurred by CONSULTANT which are disputed by CITY, CITY will use its best efforts to cause CONSULTANT to be paid within thirty (30) days of receipt of CONSULTANT's invoice. (d) Payment to CONSULTANT for work performed pursuant to this AGREEMENT shall not be deemed to waive any defects in work performed by CONSULTANT, nor to constitute any waiver of any type of relief or remedy, legal or equitable, arising out of any breach or nonperformance of any aspect of the AGREEMENT by CONSULTANT.

SECTION 5. INSPECTION AND FINAL ACCEPTANCE.

CITY may inspect and accept or reject any of CONSULTANT's work under this AGREEMENT, either during performance or when completed. CITY shall reject or finally accept CONSULTANT's work in its discretion within sixty (60) days after submitted to CITY.

Any rejection of work by CITY shall be by written explanation. Acceptance of any of CONSULTANT's work by CITY shall not constitute a waiver of any of the provisions of this AGREEMENT including, but not limited to, SECTIONS 13 and 14 of this AGREEMENT, pertaining to indemnification and insurance, respectively.

SECTION 6. OWNERSHIP OF DOCUMENTS.

All original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files, and other documents prepared, developed or discovered by CONSULTANT in the course of providing any services pursuant to this AGREEMENT shall become the sole property of CITY and may be used, reused or otherwise disposed of by CITY without the permission of the CONSULTANT. Upon completion, expiration or termination of this AGREEMENT, CONSULTANT shall turn over to CITY all such original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes, computer files, files and other documents, notwithstanding any billing or compensation disputes that may then exist between CITY and CONSULTANT.

ITEM 6.6

SECTION 7. CONSULTANT'S BOOKS AND RECORDS.
(a) CONSULTANT shall maintain any and all documents and records demonstrating or relating to CONSULTANT's and any of CONSULTANT's subcontractors' performance of services pursuant to this AGREEMENT. CONSULTANT shall maintain any and all drafts of studies or planning documents, correspondence, notices, ledgers, books of account, invoices, vouchers, canceled checks, or other documents or records evidencing or relating to work, services, expenditures and disbursements charged to CITY pursuant to this AGREEMENT. Any and all such documents or records shall be maintained in accordance with generally accepted accounting principles and shall be sufficiently complete and detailed so as to permit an accurate evaluation of the services provided by CONSULTANT pursuant to this AGREEMENT. Any and all such documents or records shall be maintained for five (5) years from the end of the term of this AGREEMENT and to the extent required by laws relating to audits of public agencies and their expenditures.
(b) Any and all records or documents required to be maintained pursuant to this section shall be made available for inspection, audit, and copying, at any time during regular business hours, upon written request by CITY, Federal government, State of California, or their designated representatives. Copies of such documents or records shall be provided directly to the requesting party for inspection, audit, and copying when it is practical to do so; otherwise, unless an alternative is mutually agreed upon, such documents and records shall be made available at CONSULTANT's address indicated for receipt of notices in this AGREEMENT. (c) Where CITY has reason to believe that any of the documents or records required to be maintained pursuant to this section may be lost or discarded due to dissolution or termination of CONSULTANT's business, CITY may, by written request, require that custody of such documents or records be given to the requesting party and that such documents and records be maintained by the requesting party. Access to such documents and records shall be granted to CITY, as well as to its successors-in-interest and authorized representatives. (d) CONSULTANT shall prepare and submit to CITY reports concerning the performance of the work in this AGREEMENT as CITY shall require.

SECTION 8. STATUS OF CONSULTANT.
(a) CONSULTANT is and shall at all times remain a wholly independent contractor and not an officer, official, employee or agent of CITY. CONSULTANT shall have no authority to bind CITY in any manner, nor to incur any obligation, debt, or liability of any kind on behalf of or against CITY, whether by contract or otherwise, unless such authority is expressly conferred under this AGREEMENT or is otherwise expressly conferred in writing by CITY. (b) The personnel performing the services under this AGREEMENT on behalf of CONSULTANT shall at all times be under CONSULTANT's exclusive direction and control.

Neither CITY, nor any elected or appointed boards, officers, officials, employees or agents of CITY, shall have control over the conduct of CONSULTANT or any of CONSULTANT's ITEM 6.6

officers, officials, employees or agents, except as set forth in this AGREEMENT.

CONSULTANT shall not at any time or in any manner represent that CONSULTANT or any of CONSULTANT's officers, officials, employees or agents is in any manner officials, officers, employees or agents of CITY.
(c) CONSULTANT shall: (i) recruit, screen, interview, and assign its employees (the "ASSIGNED EMPLOYEES") to perform the work described in EXHIBIT "A" for CITY at the location(s) specified in EXHIBIT "A"; (ii) pay ASSIGNED EMPLOYEES wages and provide other benefits required by law, including sick and family medical leave, and any other benefits as CONSULTANT deems appropriate; (iii) pay, withhold, and transmit payroll taxes, provide unemployment insurance and workers' compensation in an amount no less than required by law, and handle workers' compensation and unemployment claims involving ASSIGNED EMPLOYEES; (iv) ensure ASSIGNED EMPLOYEES are legally authorized to work in the United States; and, (v) have sole responsibility for providing and will provide necessary health coverage to ASSIGNED EMPLOYEES under the Affordable Care Act’s ("ACA") employer mandate and its implementing regulations. CONSULTANT represents and warrants that it will comply with all laws, including the ACA, in doing so.
(d) CONSULTANT shall not use any independent contractors to perform the services described in EXHIBIT "A" on CONSULTANT’s behalf unless approved in writing by CITY in advance.
(e) CONSULTANT represents that: (i) it is solely responsible for all required training of ASSIGNED EMPLOYEES under federal, state, and local laws, including those regarding antiharassment, anti-retaliation, anti-discrimination, workplace safety training, and any other applicable laws; (ii) it has, and during the term of this AGREEMENT shall maintain, antiharassment, anti-retaliation, and anti-discrimination policies, and appropriate complaint procedures in place; (iii) it is solely responsible for the supervision of ASSIGNED EMPLOYEES; (iv) it is solely responsible for all pre-employment screening and testing of ASSIGNED EMPLOYEES, as may be required or allowed by law, including Form I-9 verification, criminal background checks, industry-specific checks, other background checks, and related recordkeeping; and, (v) it is solely responsible for performance managing, disciplining, and terminating its ASSIGNED EMPLOYEES.
(f) Neither CONSULTANT, nor any of CONSULTANT's officers, officials, employees, or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to CITY'S employees. CONSULTANT expressly waives any claim CONSULTANT may have to any such rights.
(g) This AGREEMENT shall in no way prohibit the CITY from entering into other agreements or contracts, hiring staff or making other such arrangements with other persons and/or entities relative to the services set forth in EXHIBIT "A" "SCOPE OF SERVICES".

SECTION 9. STANDARD OF PERFORMANCE.

ITEM 6.6

CONSULTANT represents and warrants that it has the qualifications, experience, personnel, and facilities necessary to properly perform the services required under this AGREEMENT in a thorough, competent, and professional manner. CONSULTANT shall at all times faithfully, competently and to the best of its ability, experience, and talent, perform all services described herein. In meeting its obligations under this AGREEMENT, CONSULTANT shall employ, at a minimum, generally accepted standards and practices utilized by persons engaged in providing services similar to those required of CONSULTANT under this AGREEMENT.

SECTION 10. COMPLIANCE WITH APPLICABLE LAWS; PERMITS AND LICENSES.
(a) CONSULTANT shall keep itself informed of and comply with all applicable federal, state and local laws, statutes, codes, ordinances, regulations and rules in effect during the term of this AGREEMENT, including but not limited to regulations and rules pertaining to any grant awards or third-party funding with which this AGREEMENT is funded in whole or in part.

CONSULTANT shall obtain any and all licenses, permits and authorizations necessary to perform the services set forth in this AGREEMENT. CITY shall not be responsible for monitoring CONSULTANT’s compliance with federal, state, and local laws, statutes, codes, ordinances, or regulations. Neither CITY, nor any elected or appointed boards, officers, officials, employees or agents of CITY, shall be liable, at law or in equity, as a result of any failure of CONSULTANT to comply with this section.
(b) CONSULTANT shall not be debarred, suspended, or otherwise excluded from or ineligible for participation in federal assistance programs, or from receiving Federal contracts, subcontracts, or financial or nonfinancial assistance or benefits, under Executive Order 12549, “Debarment and Suspension” (24 CFR 85.35) or other Federal laws, statutes, codes, ordinances, regulations or rules, at any time during the term of this AGREEMENT. (c) CONSULTANT shall not discriminate, in any way, against any person on the basis of race, religion, creed, color, national origin, ancestry, physical or mental disability, medical condition, pregnancy, childbirth or related medical conditions, veteran status, sexual orientation, gender identity or expression, genetic information, marital status, military or veteran status, sex, age over 40 years, or any other basis protected by applicable federal, state, or local law, including association with individuals with one or more of these protected characteristics or perception that an individual has one or more of these protected characteristics in connection with or related to the performance of this AGREEMENT.
(d) CONSULTANT affirms and agrees that for purposes of all statutory and regulatory requirements for employee leaves of absence, including the Family and Medical Leave Act and any similar state or local law, CONSULTANT shall comply with any such requirements and CITY shall cooperate with CONSULTANT’s compliance.
(e) CONSULTANT has sole responsibility for providing, and will provide, the necessary health coverage to ASSIGNED EMPLOYEES under the ACA employer mandate and ITEM 6.6

its implementing regulations. CONSULTANT represents and warrants that it will comply with all laws, including the ACA, in doing so.
(f) Upon reasonable written notice to CONSULTANT, CITY may inspect CONSULTANT’s records to verify CONSULTANT’s compliance with this AGREEMENT.

SECTION 11. CONFLICTS OF INTEREST.
(a) CONSULTANT covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of CITY or which would in any way hinder CONSULTANT's performance of services under this AGREEMENT. CONSULTANT further covenants that in the performance of this AGREEMENT, no person having any such interest shall be employed by it as an officer, official, employee, agent, or subcontractor without the express written consent of the City Manager of CITY or his or her designee. CONSULTANT agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of CITY in the performance of this AGREEMENT.
(b) CITY understands and acknowledges that CONSULTANT is, as of the date of execution of this AGREEMENT, independently involved in the performance of non-related services for other governmental agencies and private parties. CONSULTANT is unaware of any stated position of CITY relative to such projects. Any future position of CITY on such projects shall not be considered a conflict of interest for purposes of this section.

SECTION 12. CONFIDENTIAL INFORMATION; RELEASE OF INFORMATION. (a) All information gained or work product produced by CONSULTANT in performance of this AGREEMENT shall be considered confidential, unless such information is in the public domain or already known to CONSULTANT. CONSULTANT shall not release or disclose any such information or work product to persons or entities other than CITY without prior written authorization from the City Manager of CITY or his or her designee, except as may be required by law.
(b) CONSULTANT, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the City Manager of CITY or his or her designee or unless requested by the City Attorney of CITY, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this AGREEMENT. Response to a subpoena or court order shall not be considered "voluntary" provided CONSULTANT gives CITY notice of such court order or subpoena.
(c) If CONSULTANT, or any officer, employee, agent or subcontractor of CONSULTANT, provides any information or work product in violation of this AGREEMENT, then CITY shall have the right to reimbursement and indemnity from CONSULTANT for any damages, costs and fees, including attorneys' fees, caused by or incurred as a result of ITEM 6.6

CONSULTANT's conduct.
(d) CONSULTANT shall promptly notify CITY should CONSULTANT, its officers, officials, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this AGREEMENT or the work performed thereunder. CITY retains the right, but has no obligation, to represent CONSULTANT or be present at any deposition, hearing, or similar proceeding.

CONSULTANT agrees to cooperate fully with CITY and to provide CITY with the opportunity to review any response to discovery requests provided by CONSULTANT. However, this right to review any such response does not imply or mean the right by CITY to control, direct, or rewrite said response.

SECTION 13. INDEMNIFICATION.
(a) CITY and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "INDEMNITEES") shall have no liability to CONSULTANT or any other person for, and CONSULTANT shall indemnify, defend and hold harmless INDEMNITEES from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever nature, including reasonable attorneys' fees and disbursements (collectively "CLAIMS"), which INDEMNITEES may suffer or incur or to which INDEMNITEES may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or otherwise occurring as a result of the CONSULTANT's performance of or failure to perform any services under this AGREEMENT or by the negligent or willful acts or omissions of CONSULTANT, its agents, officers, directors, subcontractors or employees, committed in performing any of the services under this AGREEMENT, including without limitation CONSULTANT's breach of any representation, warranty or obligations of CONSULTANT set for in this AGREEMENT, including but not limited to those set forth in SECTIONS 8, 9 and 10. (b) If any action or proceeding is brought against INDEMNITEES by reason of any of the matters against which CONSULTANT has agreed to indemnify INDEMNITEES as provided above, CONSULTANT, upon notice from CITY, shall defend INDEMNITEES at CONSULTANT's expense by counsel acceptable to CITY, such acceptance not to be unreasonably withheld. INDEMNITEES need not have first paid for any of the matters to which INDEMNITEES are entitled to indemnification in order to be so indemnified. The insurance required to be maintained by CONSULTANT under SECTION 14 "INSURANCE" of this AGREEMENT shall insure CONSULTANT's obligations under this section, but the limits of such insurance shall not limit the liability of CONSULTANT hereunder. The provisions of this section shall survive the expiration or earlier termination of this AGREEMENT. (c) The provisions of this section do not apply to CLAIMS occurring as a result of the CITY's sole negligence or willful acts or omissions.

ITEM 6.6

SECTION 14. INSURANCE.

CONSULTANT agrees to obtain and maintain in full force and effect during the term of this AGREEMENT the insurance policies set forth in EXHIBIT "C" "INSURANCE" and made a part of this AGREEMENT. All insurance policies shall be subject to approval by CITY as to form and content. These requirements are subject to amendment or waiver if so approved in writing by the City Manager of CITY or his or her designee. CONSULTANT agrees to provide CITY with copies of required policies upon request.

SECTION 15. ASSIGNMENT.

The expertise and experience of CONSULTANT are material considerations for this AGREEMENT. CITY has an interest in the qualifications of and capability of the persons and entities who will fulfill the duties and obligations imposed upon CONSULTANT under this AGREEMENT. In recognition of that interest, CONSULTANT shall not assign or transfer this Agreement or any portion of this AGREEMENT or the performance of any of CONSULTANT's duties or obligations under this AGREEMENT without the prior written consent of the City Council. Any attempted assignment shall be ineffective, null and void, and shall constitute a material breach of this AGREEMENT entitling CITY to any and all remedies at law or in equity, including summary termination of this AGREEMENT. CITY acknowledges, however, that CONSULTANT, in the performance of its duties pursuant to this AGREEMENT, may utilize subcontractors. CONSULTANT shall be solely liable and responsible for the actions, conduct, and performance of subcontractors, including but not limited to ensuring their compliance with SECTION 10 "COMPLIANCE WITH APPLICABLE LAWS; PERMITS AND LICENSES" of this AGREEMENT.

SECTION 16. CONTINUITY OF ASSIGNED EMPLOYEES.

CONSULTANT shall make every reasonable effort to maintain the stability and continuity of CONSULTANT's ASSIGNED EMPLOYEES. CONSULTANT shall obtain approval, in writing, from CITY of any changes in CONSULTANT's ASSIGNED EMPLOYEES, prior to any such performance.

SECTION 17. TERMINATION OF AGREEMENT.
(a) CITY may terminate this AGREEMENT, with or without cause, at any time by giving thirty (30) days written notice of termination to CONSULTANT. In the event such notice is given, CITY may require CONSULTANT to cease immediately all work in progress. (b) CONSULTANT may terminate this AGREEMENT at any time upon sixty (60) days written notice of termination to CITY. In the event such notice is given, CITY may require CONSULTANT to cease immediately all work in progress.
(c) If CONSULTANT fails to perform any material obligation under this AGREEMENT, then, in addition to any other remedies, CITY may terminate this AGREEMENT immediately upon written notice.

ITEM 6.6

(d) Upon termination of this AGREEMENT by either CONSULTANT or CITY, all property belonging exclusively to CITY which is in CONSULTANT's possession shall be returned to CITY immediately upon demand by CITY, notwithstanding any billing disputes that may then exist under this AGREEMENT. CONSULTANT shall furnish to CITY a final invoice for work performed and expenses incurred by CONSULTANT, prepared as set forth in SECTION 4 "COMPENSATION AND METHOD OF PAYMENT" of this AGREEMENT.

This final invoice shall be reviewed and paid in the same manner as set forth in SECTION 4 of this AGREEMENT.

SECTION 18. DEFAULT.

In the event that CONSULTANT is in default under the terms of this AGREEMENT, the CITY shall not have any obligation or duty to continue compensating CONSULTANT for any work performed after the date of default and may terminate this AGREEMENT immediately by written notice to the CONSULTANT.

SECTION 19. EXCUSABLE DELAYS.

CONSULTANT shall not be liable for damages, including liquidated damages, if any, caused by delay in performance or failure to perform due to causes beyond the control of CONSULTANT. Such causes include, but are not limited to, acts of God, acts of the public enemy, acts of federal, state, or local governments, court orders, fires, floods, epidemics, strikes, embargoes, and unusually severe weather. The term and price of this AGREEMENT shall be equitably adjusted for any delays due to such causes.

SECTION 20. COOPERATION BY CITY.

All public information, data, reports, records, and maps as are existing and available to CITY as public records, and which are necessary for carrying out the work as outlined in the EXHIBIT "A" "SCOPE OF SERVICES", shall be furnished to CONSULTANT in a reasonable way to facilitate, without undue delay, the work to be performed under this AGREEMENT.

SECTION 21. NOTICES.

All notices required or permitted to be given under this AGREEMENT shall be in writing and shall be personally delivered, or sent by telecopy or certified mail, postage prepaid and return receipt requested, addressed as follows:

To CITY: City of Laguna Woods
Attn: City Manager
24264 El Toro Road
Laguna Woods, CA 92637
To CONSULTANT: Great Scott Tree Service, Inc.

ATTN: President
10761 Court Avenue
Stanton, CA 90680
ITEM 6.6

Notice shall be deemed effective on the date personally delivered or transmitted by facsimile or, if mailed, three (3) days after deposit of the same in the custody of the United States Postal Service.

SECTION 22. AUTHORITY TO EXECUTE.

The person or persons executing this AGREEMENT on behalf of CONSULTANT represents and warrants that he/she/they has/have the authority to so execute this AGREEMENT and to bind CONSULTANT to the performance of its obligations hereunder.

SECTION 23. BINDING EFFECT.

This AGREEMENT shall be binding upon the heirs, executors, administrators, successors and assigns of the parties.

SECTION 24. MODIFICATION OF AGREEMENT.

No amendment to or modification of this AGREEMENT shall be valid unless made in writing and approved by the CONSULTANT and by the City Council or City Manager of CITY.

The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.

SECTION 25. WAIVER.

Waiver by any party to this AGREEMENT of any term, condition, or covenant of this AGREEMENT shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this AGREEMENT shall not constitute a waiver of any other provision, nor a waiver of any subsequent breach or violation of any provision of this AGREEMENT. Acceptance by CITY of any work or services by CONSULTANT shall not constitute a waiver of any of the provisions of this AGREEMENT.

SECTION 26. LAW TO GOVERN; VENUE.

This AGREEMENT shall be interpreted, construed, and governed according to the laws of the State of California. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of Orange. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the District of California in which CITY is located.

SECTION 27. ATTORNEYS FEES, COSTS, AND EXPENSES.

In the event litigation or other proceeding is required to enforce or interpret any provision of this AGREEMENT, the prevailing party in such litigation or other proceeding shall be entitled to an award of reasonable attorneys' fees, costs and expenses, in addition to any other relief to which it may be entitled.

SECTION 28. ENTIRE AGREEMENT.

ITEM 6.6

This AGREEMENT, including the attached EXHIBITS "A" through "C", is the entire, complete, final and exclusive expression of the parties with respect to the matters addressed therein and supersedes all other agreements or understandings, whether oral or written, or entered into between CONSULTANT and CITY prior to the execution of this AGREEMENT.

No statements, representations or other agreements, whether oral or written, made by any party which is not embodied herein shall be valid and binding. No amendment to this AGREEMENT shall be valid and binding unless in writing duly executed by the parties or their authorized representatives.

SECTION 29. SEVERABILITY.

If a term, condition, or covenant of this AGREEMENT is declared or determined by any court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this AGREEMENT shall not be affected thereby and the AGREEMENT shall be read and construed without the invalid, void, or unenforceable provision(s).

SECTION 30. NO THIRD-PARTY BENEFICIARIES.

This AGREEMENT, its provisions, and its covenants, are for the sole and exclusive benefit of CITY and CONSULTANT. No other parties or entities are intended to be, nor shall be considered, beneficiaries of the performance by either party of any of the obligations under this AGREEMENT.

IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed the day and year first above written.

CITY OF LAGUNA WOODS:

Christopher Macon, City Manager
CONSULTANT:

Scott Griffiths, President
Approved as to Form:

Alisha Patterson, City Attorney
ITEM 6.6
EXHIBIT "A"

SCOPE OF SERVICES
CONSULTANT shall perform and complete tree pruning and removal services by providing all labor, tools, equipment, materials, and supplies necessary to complete work in a professional, thorough, and timely manner, in accordance with standards and specifications as contained in this “Scope of Services” and this AGREEMENT.

Prevailing Wage

ALL SERVICES PERFORMED BY CONSULTANT UNDER THIS AGREEMENT ARE SUBJECT TO PREVAILING WAGE. In accordance with the provisions of Section 1770 et seq., of the Labor Code, the Director of Industrial Relations of the State of California has determined the general prevailing rate of wages applicable to the work to be done.

CONSULTANT shall pay to all persons employed on the project by CONSULTANT sums not less than the sums set forth in the documents entitled “General Prevailing Wage Determination made by the Director of Industrial Relations pursuant to California Labor Code, Part 7, Chapter 1, Article 2, Sections 1770,1773,17733.1”.

California Department of Industrial Relations
CONSULTANT shall be registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 at all times during the term of this AGREEMENT. All services performed by CONSULTANT under this AGREEMENT are subject to compliance monitoring and enforcement by the Department of Industrial Relations.

Firm Licensure

1. CONSULTANT shall hold and maintain a valid State of California C-27 (Landscaping) and a C-61/D49 (Limited Specialty/Tree Service) contractor’s license at all times during the term of this AGREEMENT.

Standards for Personnel

2. CONSULTANT shall designate a project manager who shall be responsible for overseeing all work performed under this AGREEMENT and coordinating the same with CITY. He or she shall be an International Society of Arboriculture (ISA) Certified Arborist and fluent in the English language. Experience managing municipal contracts is highly desirable.

3. CONSULTANT shall have available a minimum of one (1) Tree Care Industry Association (TCIA) Certified Treecare Safety Professional (CTSP). The CTSP shall be familiar with this Scope of Services and fluent in the English language. Site-specific safety meetings shall occur on a regular basis by the CTSP or an authorized representative of CONSULTANT.

The CTSP shall oversee incident investigation by CONSULTANT (see Number 52 herein).

Exhibit A – Page 1 of 9
ITEM 6.6

4. CONSULTANT shall provide a minimum of one (1) ISA Certified Tree Worker (CTW) per tree pruning or removal crew. For the purpose of this provision, a “tree pruning or removal crew” shall be defined as all personnel working in a single, geographic work zone.

5. All of CONSULTANT’s personnel who work on any tree in or around primary electrical lines (aerial utilities) shall be Qualified Line Clearance Arborists or Arborist Trainees as defined in ANSI Z133 4.1.4 and 4.2.3. A Qualified Arborist shall make the determination if the work can be performed maintaining Minimal Approach Distances (ANSI Z133 Table 1 and Table 2). A Qualified Arborist shall also determine if conditions exist to necessitate the de-energizing of aerial utilities. De-energizing shall be coordinated through CITY.

6. At all times during tree pruning or removal activities, CONSULTANT shall have work crews on-site that are represented by a fluent English-speaking supervisor who is familiar with this Scope of Services and can receive and carry out notices provided by CITY.

7. At all times during tree pruning or removal activities, CONSULTANT’s personnel shall be dressed in clean, high visibility uniforms, appropriate to the nature of the work performed, with the company name clearly identified. No portion of a uniform shall be removed or not worn. Personnel not in full uniform shall be immediately removed from the work zone.

8. CONSULTANT’s personnel shall possess all of the following:
a. Proper licensure and training for operation of equipment utilized. b. Ability to operate equipment in accordance with the manufacturer’s recommendations. c. Ability to make required operator/mechanical adjustments to the equipment being used. d. Knowledge of safety regulations as they relate to tree care and traffic control. e. Knowledge of the safety and uniform standards required by this AGREEMENT.

Standards of Practice

9. CONSULTANT shall follow the most current editions of the American National Standard for Tree Care Operations Pruning Standards (ANSI A300-Part 1) and the ISA Best Management Practices-Tree Pruning, as may change from time-to-time. Any deviations must be approved in writing by CITY prior to such work. CITY shall exercise its sole discretion, and be under no obligation as to timing, in acting to either approve, conditionally approve, or deny requested deviations. CITY may also rescind previous approvals, at any time and for any reason. CITY shall issue all approvals of requested deviations in writing.

10. CONSULTANT shall follow the most current edition of the American National Standards for Arboricultural Operations Safety Requirements (ANSI Z133), as may change from timeto-time. Deviations are expressly prohibited.

11. CONSULTANT shall possess a documented California Division of Occupational Health and Safety (CalOSHA) compliant safety certification for each aerial lift that its personnel use.

Exhibit A – Page 2 of 9
ITEM 6.6

12. CONSULTANT shall keep all equipment in good working order and shall maintain, operate, and utilize the same in full compliance with applicable manufacturer’s instructions, CalOSHA regulations, and California Department of Transportation (DOT) requirements.

13. CONSULTANT shall hold and maintain, in full force and effect, encroachment permits from CITY (CITY will waive fees) during all work. Encroachment permits applications shall include submittals required by CITY including, at a minimum, a traffic control plan. The CITY will not allow more than one lane of traffic per street direction to be closed or impeded at a time, or work to commence earlier than 8 a.m. or occur past 4 p.m., except for duly authorized emergency work. CONSULTANT shall provide all traffic control services and devices (e.g., cones, delineators, signage, and flaggers) as required by encroachment permits and otherwise deemed necessary for the safe conduct of services. At no time shall CONSULTANT commence or carry on with work that presents a hazard to pedestrians or bicycle, golf cart, or vehicle traffic.

14. CONSULTANT shall setup, operate, and stage in a manner that presents the least amount of disruption to residents, businesses, the public, and traffic flow. Equipment shall never be stored or left unattended on a public street, CITY facility, or private property. The staging of equipment shall not be exempt from work hour restrictions (i.e., it shall not commence earlier than 8 a.m. or occur past 4 p.m.).

15. CONSULTANT shall establish and maintain a work zone for each tree pruned or removed using all generally accepted methods for establishing and maintaining such work zone. No individuals other than CONSULTANT’s personnel or CITY representatives shall be allowed to enter such work zone. If any other individual enters a work zone, CONSULTANT shall immediately cease all work and the operation of all equipment until the work zone is clear.

16. Tree work is a controlled task. At no time shall CONSULTANT perform work so as to result in a loss of control incident (e.g. free-falling large limbs or trunk sections, hinge cutting to avoid use of ropes/hoisting equipment, lack of safety apparatus/equipment guards, improper use/loading of equipment). CONSULTANT shall be fully liable for any damage, injury, or death resultant of loss of control incidents. In addition, CONSULTANT shall be responsible for the mitigation of any damages related to loss of control incidents, and indemnification and defense obligations of CITY as set forth in this AGREEMENT.

17. CONSULTANT shall identify the location of all utilities, irrigation components, and/or any public or private property element(s) that could be compromised by any work activity. This pre-inspection shall occur prior to any commencement of work. If identified, CONSULTANT shall take appropriate action to protect the same. If, during the course of the pre-inspection, CONSULTANT identifies damage that existed before the onset of work, CONSULTANT shall document the damage with photographs and report such damage to CITY prior to any commencement of work in that area. All photo documentation shall have the time and date embedded. Any claim of damage that cannot be refuted by photo documentation and/or a written report to CITY shall be considered the responsibility of CONSULTANT.

Exhibit A – Page 3 of 9
ITEM 6.6

18. While performing work of any type, CONSULTANT shall continually inspect for any hazard related to trees, including uplifted sidewalk segments and defective or weakened trees.

Hazardous conditions shall be corrected by CONSULTANT or immediately reported to CITY. At no time shall CONSULTANT work in a hazardous condition.

19. Prior to the commencement of any work in the vicinity of any tree, CONSULTANT shall visually survey each tree, from all sides, for the sole purpose of detecting the presence of bird nests or wildlife of any type. If a nest is found and is determined to be active, there shall be no work of any type in the tree in which the nest is found without the written permission of CITY. At no time shall CONSULTANT remove any nest or wildlife from its location. In the event that wildlife is accidentally displaced, CONSULTANT shall notify CITY for animal control assistance, which shall be provided at CONSULTANT’s cost.

20. For all trees known or suspected to be diseased, and for all California Sycamore trees, CONSULTANT shall disinfect all pruning tools and cutting surfaces with a ten percent (10%) percent chlorine bleach solution after each cut and between trees where there is danger of transmitting the disease on tools. Fresh solution shall be mixed daily. Used or old solutions shall be disposed of through lawful disposal methods. Dumping used or old solutions, or any component thereof, on the ground, in the gutter, or down the storm drain is prohibited.

21. CONSULTANT shall prevent unnecessary noise resulting from its work and comply with the Laguna Woods Municipal Code’s noise standards, as may change from time-to-time.

General Tree Pruning Standards

22. Tree pruning shall be provided on an annual basis and as-needed. Within sixty (60) days from the effective date of this AGREEMENT (April 1, 2021), CONSULTANT shall prune trees in accordance with appendices B and E of the Request for Proposals (RFP) that was released by CITY for Tree Pruning and Removal Services on February 4, 2021. Within thirty (30) days of the completion of such annual tree pruning, CONSULTANT’s ISA Certified Arborist shall notify CITY in writing of any additional tree pruning that he or she expects will be necessary during the term of this AGREEMENT for consideration by CITY. Apart from the aforementioned annual tree pruning, CONSULTANT shall only provide tree pruning services as requested by CITY. This AGREEMENT does not state, convey, imply or infer a specific, minimum or expected amount of work or compensation for as-needed tree pruning.

23. CONSULTANT shall prune trees in accordance with CITY specifications and to accomplish CITY’s pruning objectives. Pruning objectives may include, but are not limited to, one or more of the following:
a. Risk Reduction
b. Clearance
c. Structural Improvement
Exhibit A – Page 4 of 9
ITEM 6.6
d. Health Management
e. Restoration

24. CITY’s desire is for all trees to retain a natural look according to their species. a. CONSULTANT shall prune all trees to retain and develop their natural structure, as defined in the most current version of ISA Best Management Practices-Tree Pruning, as may change from time-to-time. Any deviations must be approved in writing by CITY prior to such work. CITY shall exercise its sole discretion, and be under no obligation as to timing, in acting to either approve, conditionally approve, or deny requested deviations. CITY may also rescind previous approvals, at any time and for any reason. CITY shall issue all approvals of requested deviations in writing.
b. Unless specific circumstances warrant, no more than twenty-five percent (25%) of a live tree crown shall be removed in any one growing season.
c. “Topping” and “lion’s tailing” are prohibited.
d. The use of climbing spurs/gaffs in the act of tree pruning is prohibited.

25. CONSULTANT’s tree pruning shall consist of one or more of the following types to achieve the pruning objective(s):
a. Crown Cleaning: Crown Cleaning is the removal of dead, diseased, crowded, crossing, weakly attached, and low-vigor branches and water sprouts from the entirety of the tree crown. It is the preferred pruning type to retain the natural structure of the tree. Competing stems and branches should be subordinated. This type may also be used in combination with Crown Restoration, Reduction, and Raising pruning.
b. Crown Thinning: Crown Thinning includes Crown Cleaning and the selective removal of branches to increase light penetration and air movement into and through the tree crown.

Crown Thinning reduces the wind-sail effect of the crown and the weight of heavy limbs.

Consideration shall be given to the ability of the tree to tolerate this type of pruning. Care shall be used to avoid stripping branches of all foliage at the interior of the crown. That practice, known as “lion’s tailing,” disrupts the structural integrity of the tree, making it subject to limb and branch failure, especially during high winds. Crown Thinning can emphasize the structural beauty of trunks and branches, as well as improve the growth of plants beneath the tree by increasing light penetration. When thinning the crown of mature trees, seldom should more than 25% of the live foliage be removed. This type may also be used in combination with Crown Restoration, Reduction, and Raising pruning. c. Crown Raising: Crown Raising consists of removing the lower branches of a tree in order to provide clearance for buildings, vehicles, signs, lights, and pedestrians. Consideration shall be given to the ability of the tree to tolerate this type of pruning. CONSULTANT shall maintain street clearance to a safe distance above the public right-of-way at a minimum of Exhibit A – Page 5 of 9
ITEM 6.6
eight (8) feet above the surface of a public sidewalk or pedestrian way and fourteen (14) feet above the surface of a public street. Crown Cleaning may also occur as necessary. d. Crown Reduction: Crown Reduction is used to reduce the height and/or spread of a tree.

Consideration shall be given to the ability of the tree to tolerate this type of pruning. “Topping” shall not occur. Crown Reduction shall be accomplished using reduction cuts (drop-crotch), not heading cuts. Crown Cleaning shall accompany a Crown Reduction. No more than 25% of the live crown shall be removed in any one growing season. e. Crown Restoration: Crown Restoration is corrective pruning used as a means to restore the form of tree crowns that have been previously damaged by wind events or poor pruning practices. The natural structure of the tree shall be restored. Multiple Crown Restorations, over time, may be necessary. Only ISA Certified Tree Workers and Arborists shall perform this type of work.
f. Selective/Safety Pruning: Selective/Safety Pruning is the select pruning and removal of specific branches(s) of a tree. A Safety Prune is employed as a means of eliminating potentially hazardous limbs (broken/dead/dying) from the crown of a tree when an entire pruning of the tree is not warranted. Crown Cleaning shall also occur as necessary. g. Palm Pruning: Palm Pruning relates to Queen Palms (Syagrus romanzoffianum) and Mexican Fan Palms (Washingtonia robusta). Stalks shall be pruned to a 45-degree angle.

Loose petiole bases shall be removed each time the crown is maintained. Petiole bases that are attached to live trunk tissue shall be left undamaged. h. Structural Pruning of Small/Young Trees: In order to promote the development of good structure, small, young, and recently-planted trees shall be pruned minimally with a focus on removing crossing branches, ensuring adequate branch spacing, and encouraging the development of one dominant leader (except in cases of multi-trunked trees). If co-dominant leaders are present – and, if possible – one shall be removed or subordinated with a proper reduction cut. No branch diameters should exceed 50% of the diameter of the stem at the point of attachment.

26. CONSULTANT shall prune trees to prevent branch and foliage interference with safe public passage. This activity shall be included with each pruning type set forth in Number 25 herein, as necessary. Exceptions are allowed for young trees, which would be irreparably damaged by such pruning action. If pruning to these standards would result in permanent disfiguration of a tree, CONSULTANT shall not prune the tree until such time as direction is obtained from CITY. CONSULTANT shall maintain street clearance to a safe distance above the public right-of-way at a minimum of eight (8) feet above the surface of a public sidewalk or pedestrian way and fourteen (14) feet above the surface of a public street.

27. CONSULTANT shall remove and control all tree limbs in a manner that causes no damage to other parts of the tree, or to other plants or property.

Exhibit A – Page 6 of 9
ITEM 6.6

28. CONSULTANT shall remove all broken, dead, dying, or loose branches and branch stubs.

When removing a dead branch, the final cut should be made outside the collar of live callus tissue. If the collar has grown out along the branch stub, only the dead stub should be removed; the live collar should remain intact and uninjured.

29. CONSULTANT shall subordinate or remove branches that are developing in a manner as to become larger than the limbs they originate from.

30. When encountering limbs that are weighted with more foliage than the limb is likely to support, CONSULTANT shall selectively prune branches toward the end of the limb in order to reduce end weight and, thus, decrease the likelihood of limb failure.

31. CONSULTANT shall selectively prune branches that create sight line conflicts with traffic control signs, traffic control devices, and/or wayfinding signs.

32. CONSULTANT shall selectively prune branches that are within five (5) feet of a structure.

33. CONSULTANT shall clear trees of sprout or sucker growth to a minimum height of ten (10) feet above ground level. Exceptions are allowed for young trees, which would be irreparably damaged by such pruning action.

34. CONSULTANT shall prune trees to maintain a balanced appearance when viewed from the side of the street immediately opposite the tree, unless authorized, in writing, by CITY to do otherwise.

35. CONSULTANT shall remove all vines (including ivy and mistletoe) that are entwined in trees and on tree trunks. Vine tendrils shall be removed without injury to trees.

36. CONSULTANT shall immediately notify CITY of all observed infestations of termites, bees, hornets, wasps, or rats.

37. CONSULTANT shall prune all trees six (6) inches in diameter or less with hand saws, pole pruners, or other hand tools only.

38. CONSULTANT shall remove any extraneous and unnecessary metal, wire, rubber, or other material interfering with tree growth whenever possible.

39. CONSULTANT shall immediately notify CITY if any cable or guy wire installed for a tree is found to be broken, excessively loose, or girdling the stem.

Tree Removal Standards

40. CONSULTANT shall only provide tree removal services as requested by CITY. This AGREEMENT does not state, convey, imply or infer a specific, minimum or expected amount of work or compensation for as-needed tree removal.

Exhibit A – Page 7 of 9
ITEM 6.6

41. Tree removal consists of the removal of the entirety of a tree, including the removal of the associated stump (unless located on a slope and required for soil stability) and root system.

42. CONSULTANT shall identify the location of all utilities and public and private property landscape irrigation components prior to tree removal. CONSULTANT shall notify CITY, in writing, of any condition that prevents the removal of a tree. CONSULTANT shall be held responsible for any damage that occurs once the process of removing a tree and/or associated grinding begins.

43. CONSULTANT shall not remove any tree without first field verifying with CITY that the tree being considered is indeed the tree to be removed.

44. CONSULTANT shall grind stumps, including the root flare, to a depth of not less than eighteen (18) inches or until stump material is removed. Surface roots shall be traced and ground to a depth of not less than eight (8) inches. Debris generated by stump grinding and root removal shall be removed from the site and replaced with a topsoil mix. Chips and stump grindings shall not be used as a backfill material.

45. While loading and handling debris, CONSULTANT shall maintain control at all times so as not to result in damage to public or private property. In addition, CONSULTANT shall not drop brush, limbs, logs, or other debris so as to create undue noise or shock impact related damage to public or private property.

46. CONSULTANT shall be responsible for the repair of any damaged public or private property, including any irrigation system components damaged during tree removal. Repairs shall be made using components matching those that were damaged.

Clean-up and Waste Disposal

47. CONSULTANT shall rake all lawn areas and sweep all streets and sidewalks at the end of each day before the work is completed. The use of blowers of any kind is prohibited in all areas except parking lots where CONSULTANT may use electric-powered blowers only when pedestrians are not present. Areas are to be left in a condition equal to or better than that which existed prior to the commencement of work.

48. CONSULTANT shall promptly and lawfully remove brush, limbs, logs, and any other debris resulting from any tree pruning or removal within one (1) hour following completion of work on the tree from which the debris was generated. All trimming activities shall cease immediately if clean-up personnel or equipment ceases to function or becomes otherwise unavailable. Under no circumstance shall debris be allowed to create a hazardous condition.

49. CONSULTANT shall not permit any personnel or member of the public to collect, salvage, or remove any brush, limbs, logs, or other debris resulting from tree pruning or removal.

Exhibit A – Page 8 of 9
ITEM 6.6

50. CONSULTANT shall divert at least sixty-five percent (65%) of the debris resulting from any tree pruning or removal from landfills and transformation facilities. If CONSULTANT chooses to utilize a third-party to haul debris, it shall be a requirement to use Waste Management of Orange County (Waste Management Collection and Recycling, Inc.).

51. CONSULTANT shall provide CITY with documentation of the tonnage and composition of debris disposed of, and the manner and location of disposition, before any compensation is provided for services rendered.

Injury or Death Incident Reporting

52. CONSULTANT shall report to CITY any incident that occurs during work, and results in any injury or death, within one (1) hour of occurrence. CONSULTANT shall prepare and submit a written report to CITY within twenty-four (24) hours of any such incident.

CONSULTANT’s CTSP shall oversee CONSULTANT’s investigation and reporting, and shall also submit a report to CITY within fourteen (14) days determining root causes of the incident with follow-up mitigation actions by CONSULTANT.

Property Damage Reporting and Repair

53. Should any structure or property be damaged during CONSULTANT’S work, CONSULTANT shall notify the property owners and CITY within one (1) hour of occurrence. CONSULTANT shall make all arrangements for repairs to damaged property within forty-eight (48) hours of occurrence, except utility lines, which shall be repaired within twenty-four (24) hours of occurrence. CONSULTANT shall be solely responsible for contacting all utilities, property owners, and contractors required to complete such repairs.

Repairs shall be made in accordance with the appropriate building codes under permits issued by CITY (CITY will not waive fees) and other laws and regulations, as applicable.

Repairs shall be made using components matching those that were damaged.

54. CONSULTANT shall pay special attention to existing irrigation systems, plant material, landscape features, lights, and utility boxes on CITY property in order to avoid damage. Any damage that occurs to those areas shall be repaired on the same day that the damage occurs, unless otherwise authorized by CITY.

Exhibit A – Page 9 of 9
ITEM 6.6
EXHIBIT "B"

COMPENSATION
Table 1-1: Compensation Schedule – Tree Pruning Services in accordance with appendices B and E of the Request for Proposals (RFP) that was released by CITY for Tree Pruning and Removal Services on February 9, 2023*

A B C D E F
Botanical Name Common Name Number
of Trees
Scope
(refer to Number 25 in Exhibit
A of this Agreement)
Rate per
Tree
Total Rate by
Botanical Name
(Column C x E)
Afrocarpus gracilior Podocarpus 1 Crown Cleaning & Crown Thinning $50 $50 Arbutus cv. Marina Marina strawberry tree 4 Crown Cleaning & Crown Thinning $45 $180 Cassia leptophylla Gold medallion tree 2 Crown Cleaning & Crown Thinning $45 $90 Cercis canadensis Eastern redbud 30 Structural Pruning of Small/Young Trees $25 $750 Cercis occidentalis Western redbud 18 Structural Pruning of Small/Young Trees $30 $540 Chilopsis linearis Desert willow 3 Crown Cleaning & Crown Thinning $115 $345 Corymbia citriodora Lemon-scented gum 7 Crown Cleaning & Crown Thinning $115 $805 Cupaniopsis anacardioides Carrotwood 6 Crown Cleaning & Crown Thinning $60 $360 Eucalyptus spp. Eucalyptus species 37 Crown Cleaning & Crown Thinning $115 $4,255 Ficus spp. Ficus species 8 Crown Cleaning & Crown Thinning $105 $840 Fraxinus uhdei Shamel ash 8 Crown Cleaning & Crown Thinning $70 $560 Geijera parviflora Australian willow 115 Crown Cleaning & Crown Thinning $55 $6,325 Jacaranda mimosifolia Jacaranda 1 Crown Cleaning & Crown Thinning $60 $60 Koelreuteria bipinnata Chinese flame tree 1 Crown Cleaning & Crown Thinning $60 $60 Lagerstroemia indica Crape myrtle 53 Crown Cleaning & Crown Thinning $40 $2,120 Liriodendron tulipifera Tulip tree 32 Structural Pruning of Small/Young Trees $25 $800 Magnolia grandiflora Southern magnolia 140 Crown Cleaning & Crown Thinning $40 $5,600 Olea europaea Olive tree 52 Crown Cleaning & Crown Thinning $60 $3,120 Pinus canariensis Canary Island pine 31 Crown Cleaning & Crown Thinning $105 $3,255 Pinus halepensis Aleppo Pine 3 Crown Cleaning & Crown Thinning $195 $585 Platanus racemosa California sycamore 103 Crown Cleaning & Crown Thinning $70 $7,210 Schinus molle California Pepper 1 Crown Cleaning & Crown Thinning $75 $75 Schinus terebinthifolius Brazilian pepper tree 58 Crown Cleaning & Crown Thinning $95 $5,510 Searsia lancea African sumac 91 Crown Cleaning & Crown Thinning $95 $8,645 Ulmus parvifolia Chinese elm 4 Crown Cleaning & Crown Thinning $70 $280 Washingtonia robusta Mexican Fan Palm 3 Palm Pruning $70 $210 Xylosma congestum Shiny Xylosma 14 Crown Cleaning & Crown Thinning $40 $560 TOTAL 826 GRAND
TOTAL $53,190
* In the event that CITY modifies appendices B and/or E of the Request for Proposals (RFP) that was released by CITY for Tree Pruning and Removal Services on February 9, 2023, such modifications shall be made at the “Rate per Tree” contained in Column E.

Exhibit B – Page 1 of 2
ITEM 6.6
As-Needed Services
Table 1-2: Compensation Schedule – As-Needed Services
Description (for “Service Request Prune”
services, botanical names are listed; for common
names refer to Table 1-1)
Rate
Service Request Prune Labor $110 per person/per hour
Tree & Stump Removal $69 per inch
Tree Only Removal $59 per inch
Stump Only Removal $19 per inch
Crew Rental* $110 per person/per hour
Emergency Crew Rental* $150 per person/per hour
Emergency Crew Rental*
(Double Overtime/Sunday/Holiday**) $175 per person/per hour * Crew Rental and Emergency Crew Rental rates apply only for extraordinary as-needed services (e.g., difficult access, pruning beyond International Society of Arboriculture standards, etc.). ** Double Overtime applies to any employee who works over 12 hours in a day and in excess of 8 hours worked on the seventh consecutive day. Holidays are New Year’s Day, Martin Luther King, Jr. Day, Presidents Day, Good Friday, Memorial Day, Fourth of July, Labor Day, Veterans Day, Thanksgiving Day, Day after Thanksgiving Day, Christmas Eve, and Christmas Day.

Other Notes
The rates set forth in Table 1-1 and Table 1-2 are “all inclusive”. CITY shall not provide separate or supplemental compensation to CONSULTANT
Exhibit B – Page 2 of 2
ITEM 6.6
EXHIBIT "C"

INSURANCE
A. Insurance Requirements. CONSULTANT shall provide and maintain insurance, acceptable to the City Manager of CITY or his or her designee or City Attorney, in full force and effect throughout the term of this AGREEMENT, against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by CONSULTANT, its agents, representatives or employees. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII. CONSULTANT shall provide the following scope and limits of insurance:

1. Minimum Scope of Insurance. Coverage shall be at least as broad as:
(1) Insurance Services Office form Commercial General Liability coverage (Occurrence Form CG 0001).
(2) Insurance Services Office form number CA 0001 (Ed. 03/10) covering Automobile Liability. The auto liability policy must cover all non-owned autos, scheduled autos, and hired autos subject to the written approval of CITY. (3) Workers' Compensation insurance as required by the Labor Code of State of California and Employer's Liability insurance and covering all persons providing services on behalf of the CONSULTANT and all risks to such persons under this AGREEMENT.
(4) Errors and omissions liability insurance appropriate to the CONSULTANT's profession.
(5) Employment practices liability insurance.

2. Minimum Limits of Insurance. CONSULTANT shall maintain limits of insurance no less than:
(1) General Liability: $5,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregate for bodily injury, personal injury, and property damage.
(2) Automobile Liability: $2,000,000 per accident for bodily injury and property damage.
(3) Workers' Compensation and Employer's Liability: Workers' Compensation as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident.

Exhibit C – Page 1 of 3
ITEM 6.6
(4) Professional Liability: $1,000,000 per claim and no less than $1,000,000 general aggregate.

B. Other Provisions. Insurance policies required by this AGREEMENT shall contain the following provisions:

1. All Policies. Each insurance policy required by this AGREEMENT shall be endorsed and state that the coverage shall not be suspended, voided, cancelled by the insurer or either party to this AGREEMENT, reduced in coverage or in limits except after 30 days' prior written notice by Certified mail, return receipt requested, has been given to the City Manager of CITY or his or her designee.

2. General Liability and Automobile Liability Coverages. (1) CITY, and its respective elected and appointed officers, officials, and employees and volunteers are to be covered as additional insureds as respects: liability arising out of activities CONSULTANT performs; products and completed operations of CONSULTANT; premises owned, occupied or used by CONSULTANT; or automobiles owned, leased, hired or borrowed by CONSULTANT. The coverage shall contain no special limitations on the scope of protection afforded to CITY, and their respective elected and appointed officers, officials, or employees.
(2) CONSULTANT's insurance coverage shall be primary insurance with respect to CITY, and its respective elected and appointed, its officers, officials, employees and volunteers. Any insurance or self insurance maintained by CITY, and its respective elected and appointed officers, officials, employees or volunteers, shall apply in excess of, and not contribute with, CONSULTANT's insurance.
(3) CONSULTANT's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
(4) Any failure to comply with the reporting or other provisions of the policies including breaches of warranties shall not affect coverage provided to CITY, and its respective elected and appointed officers, officials, employees or volunteers.

3. Workers' Compensation and Employer's Liability Coverage. Unless the City Manager of CITY or his or her designee otherwise agrees in writing, the insurer shall agree to waive all rights of subrogation against CITY, and its respective elected and appointed officers, officials, employees and agents for losses arising from work performed by CONSULTANT.

C. Other Requirements. CONSULTANT agrees to deposit with CITY, at or before the effective date of this contract, certificates of insurance necessary to satisfy CITY that the insurance provisions of this contract have been complied with. The City Attorney may require that CONSULTANT furnish CITY with copies of original endorsements effecting coverage Exhibit C – Page 2 of 3
ITEM 6.6
required by this section. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. CITY reserves the right to inspect complete, certified copies of all required insurance policies, at any time.

1. CONSULTANT shall furnish certificates and endorsements from each subcontractor identical to those CONSULTANT provides.

2. Any deductibles or self-insured retentions must be declared to and approved by CITY. At the option of CITY, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects CITY or its respective elected or appointed officers, officials, employees and volunteers or the CONSULTANT shall procure a bond guaranteeing payment of losses and related investigations, claim administration, defense expenses and claims.

3. The procuring of such required policy or policies of insurance shall not be construed to limit CONSULTANT's liability hereunder nor to fulfill the indemnification provisions and requirements of this AGREEMENT.

Exhibit C – Page 3 of 3
This page is intentionally blank.

6.7 GENERAL PLAN ANNUAL REPORT
This page is intentionally blank.

City of Laguna Woods
General Plan Annual Report
2022
Planning & Environmental Services Department
City of Laguna Woods
24264 El Toro Road
Laguna Woods, CA 92637
T: (949) 639-0500
TTY: (949) 639-0535
F: (949) 639-0591
March 22, 2023
ITEM 6.7
2022 General Plan Annual Report

Period of this Annual Report
This General Plan Annual Report is for the 2022 calendar year (January – December 2022).

Purpose of this Annual Report
California Government Code Section 65400 requires the City to provide by April 1 of each year an annual report to the City Council, the Governor’s Office of Planning and Research (OPR), and the State Department of Housing and Community Development (HCD) that includes all of the following:
(A) The status of the City’s General Plan and progress in its implementation. (B) The progress in meeting the City’s share of regional housing needs determined pursuant to California Government Code Section 65584 and local efforts to remove governmental constraints to the maintenance, improvement, and development of housing pursuant to California Government Code Section 65583(3)(c).
(C) The number of housing development applications received by the City in the prior year. (D) The number of units included in all development applications to the City in the prior year. (E) The number of units approved and disapproved by the City in the prior year. (F) The degree to which the City’s approved General Plan complies with the guidelines developed and adopted pursuant to California Government Code Section 65040.2 and the date of the last revision to the City’s General Plan.
(G) A listing of sites rezoned to accommodate that portion of the City’s share of the regional housing need for each income level that could not be accommodated on sites identified in the inventory required by California Government Code sections 65583(1)(c) and 65584.09. The listing of sites must also include any additional sites that may have been required to be identified by California Government Code Section 65863.
(H) The number of net new units of housing, including both rental housing and for-sale housing, that have been issued a completed entitlement, a building permit, or a certificate of occupancy by the City, thus far in the housing element cycle, and the income category, by area median income category, that each unit of housing satisfies. This production report must, for each income category, distinguish between the number of rental housing units and the number of for-sale units that satisfy each income category. This production report must include, for each entitlement, building permit, or certificate of occupancy, a unique site identifier which must include the assessor’s parcel number, but may include street address, or other identifiers. (I) The number of applications submitted to the City pursuant to California Government Code Section 65913.4(a), the location and the total number of developments approved by the City pursuant to California Government Code Section 65913.4(b), the total number of building permits issued by the City pursuant to California Government Code Section 65913.4(b), the total number of ITEM 6.7
2022 General Plan Annual Report

units including both rental housing and for-sale housing by area median income category constructed within the City’s jurisdiction using the process provided for in California Government Code Section 65913.4(b).

California Government Code Section 65400 requires the housing element portion of the annual report to be prepared through the use of standards, forms, and definitions adopted by HCD, and be considered at a public meeting before the City Council where members of the public must be allowed to provide oral testimony and written comments. The public meeting for this 2022 General Plan Annual Report was held concurrent with the City Council’s adjourned regular meeting on March 22, 2023. A final copy of the report will be submitted to OPR and HCD after the March 22, 2023 meeting.

General Plan Background and Amendments
Preparation of the Laguna Woods General Plan began with a series of community workshops held in early 2001. Perspectives and issues presented by members of the community set the course for the new General Plan. The General Plan Coordinating Committee, appointed by the City Council, considered each draft-component of the new General Plan and provided input at monthly meetings from February 2001 through June 2002. The Community Services Committee provided input on the draft document at public meetings in March and August 2002. In September 2002, the Planning Advisory Committee recommended that the City Council certify the Environmental Impact Report prepared in conjunction with the General Plan and adopt the draft General Plan. The City Council held a public hearing, certified the Environmental Impact Report, and adopted the General Plan on October 16, 2002. The General Plan Housing Element was subsequently certified by HCD on April 7, 2003.

State law allows the City to amend its General Plan a maximum of four times per year. Amendments may be proposed and acted upon at any time during the year and one action may include multiple amendments. Amendments require a public hearing by the City Council and evaluation of environmental impacts as required by the California Environmental Quality Act (CEQA).

A summary of all adopted General Plan amendments is included in Table 1.

Table 1 – Adopted General Plan Amendments
Date of
Amendment Title of Amendment Description of Amendment
October
2005
General Plan Amendment
(GPA 05-01)
General Plan Amendment to
change a property from
Commercial to High Density
Residential
July
2007
General Plan Amendment
(GPA 07-01)
General Plan Amendment for the
annexation of 170 acres of land for
Open Space
Table continued on page four.

ITEM 6.7
2022 General Plan Annual Report

Table continued from page three.

Date of
Amendment Title of Amendment Description of Amendment
January
2009 General Plan Housing Element Update Housing Element Update December
2010
General Plan Land Use Element and Map
Amendment
General Plan Amendment
incorporating new “Residential
Community” and “Community
Facilities” land use designation and
reflecting a private community
name change from “Leisure
World” to “Laguna Woods
Village”
June
2013 General Plan Circulation Element Update
Addition of a road definition and
updates to ensure consistency with
the Master Plan of Arterial
Highways (MPAH)
February
2014 General Plan Housing Element Update Housing Element Update (streamlined option) April
2014 General Plan Safety Element Update Comprehensive update of the Safety Element July
2015 General Plan Conservation Element Update Comprehensive update of the Conservation Element July
2015
General Plan Amendment
(GPA 15-19)
General Plan Amendment to
change the land use designation for
eight parcels from “Urban
Activities Center” to “Open Space”
August
2017
General Plan Land Use Element Amendment
(GPA/ZC-1169)
General Plan Amendment related
to Urban Activities Center (UAC)
properties, including changes in
land use designations for six
parcels and deletion of the UAC
land use designation
February
2022 General Plan Housing Element Update Housing Element Update(adopted on February 9, 2022) August
2022 General Plan Housing Element Update Housing Element Update (adopted on August 12, 2022) Pending General Plan Updates
A General Plan update involving the Circulation, Land Use, and Noise elements is pending. In addition to completing actions necessary to implement the adopted Housing Element, it is anticipated that various other land use designation changes and implementing policy framework (goals and policy objectives) revisions will be considered.

ITEM 6.7
2022 General Plan Annual Report

City’s Responsibility
The effectiveness of the General Plan ultimately depends on how it is implemented and maintained over time. The implementation and maintenance of the General Plan is the responsibility of the City Council and all City departments. State law requires that most actions of cities affecting the physical environment be consistent with the General Plan.

In addition to the City, several other government agencies (e.g., Orange County Fire Authority, Orange County Sheriff’s Department, El Toro Water District) provide services within the City’s boundaries.

While those agencies are neither a part of the City’s operational structure nor directly responsible for implementation of the General Plan, the City coordinates its activities with those agencies and relies on their assistance for full implementation of the General Plan.

Status of General Plan Implementation Actions
The City’s implementation of the General Plan is ongoing and largely achieved through the adoption of City Council directives, policies, ordinances, and resolutions; incorporation into governmental activities of applicable departments; and, processing of development applications and entitlements. The City’s consideration of the General Plan occurs on a routine basis; implementation is progressing, concurrent with the General Plan update that is currently underway. The City’s budgets, work plans, capital improvement programs, annual comprehensive financial reports, ordinances, and resolutions more specifically describe the City’s actions associated with implementation of the General Plan. To obtain copies of those documents, please contact the City Clerk’s Office at (949) 639-0500.

A review of the implementation status of the General Plan Housing Element, including progress toward meeting the City’s Regional Housing Needs Assessment allocation, is provided below.

Housing Element Annual Progress Report
The Regional Housing Needs Assessment (RHNA) is mandated by state law as a part of the periodic process of updating general plan housing elements. The RHNA quantifies the need for housing within cities and unincorporated areas during specified planning periods. The Southern California Association of Governments (SCAG) develops the RHNA for the City.

Table 2 summarizes the City’s RHNA allocation for the “6th cycle” from October 2021 to October 2029.

Table 2 – City’s RHNA Allocation – 6th Cycle
Income Category RHNA Allocation
(Dwelling Units)
Very Low Income 127
Low Income 136
Moderate Income 192
Above Moderate Income 542
TOTAL 997
ITEM 6.7
2022 General Plan Annual Report

Note: The following Housing Element Annual Progress Report forms and tables are required, or requested, to be submitted to HCD and OPR. The forms and tables are protected by HCD, which restricts the type of data that can be entered. As a result, some fields appear blank when the reportable figure is zero.

Attached:

Start Here (1 page)
Table A – Housing Development Applications Submitted (2 pages) Table A2 – Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Units (4 pages)
Table B – Regional Housing Needs Allocation Progress - Permitted Units Issued by Affordability (1 page)
Table C – Sites Identified or Rezoned to Accommodate Shortfall Housing Need and No NetLoss Law (1 page) Table D – Program Implementation Status pursuant to GC Section 65583 (6 pages) Table E – Commercial Development Bonus Approved pursuant to GC Section 65915.7 (1 page) Table F – Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) (1 page)
Table F2 – Above Moderate Income Units Converted to Moderate Income Pursuant to Government Code section 65400.2 (2 pages)
Table G – Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of (1 page)
Table H – Locally Owned Surplus Sites (1 page)
Table I – Units Constructed Pursuant to Government Code 65852.21 and Applications for Lot Splits Pursuant to Government Code 66411.7 (SB9) (1 page) Table J – Student housing development for lower income students for which was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915 (2 pages)
Summary (1 page)
Local Early Action Planning (LEAP) Reporting (1 page)
ITEM 6.7
Jurisidiction Name
Reporting Calendar YearFirst NameLast NameTitle Click here to download APR InstructionsEmailPhoneStreet AddressCityZipcode 1_23_23
Optional: Click here to import last year's data. This is best used when the workbook is new and empty. You will be prompted to pick an old workbook to import from. Project and program data will be copied exactly how it was entered in last year's form and must be updated. If a project is no longer has any reportable activity, you may delete the project by selecting a cell in the row and typing ctrl + d. 24264 El Toro Road
Laguna Woods
92637
Please Start Here
General Information
2022
Laguna Woods
Contact Information
Rebecca
Pennington
Development Programs Analyst
[email protected]
9496390500
Mailing Address
Annual Progress Report January 2020
ITEM 6.7
Jurisdiction Laguna Woods ANNUAL ELEMENT PROGRESS REPORT Note: "+" in Reporting Year 2022 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 6th Cycle 10/15/2021 - 10/15/2029 Date
Application
Submitted
2 34
Prior APN+ Current APN Street Address Project Name+ Local Jurisdiction Tracking ID+ Unit Category (SFA,SFD,2 to 4,5+,ADU,MH) Tenure R=Renter O=Owner Date Application Submitted+ (see instructions) Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low-Income Deed Restricted Low-Income Non Deed Restricted Summary Row: Start Data Entry Below 0 00 0
N/A
Table A
Cells in grey co
1 5
Project Identifier Unit Types Proposed Units - Affordab Housing Development
ITEM 6.7
dicates an optional field
Total
Approved
Units by
Project
Total
Disapproved
Units by
Project
Streamlining Application Status Notes
6 7 8 9 11 12
ModerateIncome
Deed
Restricted
ModerateIncome
Non Deed
Restricted
Above
ModerateIncome Total PROPOSED Units by Project Total APPROVED Units by project Total DISAPPROVED Units by Project Was APPLICATION

SUBMITTED
Pursuant to GC
65913.4(b)?
(SB 35
Streamlining)
Ddi the housing
development
application seek
incentives or
concessions
pursuant to
Government Code
section 65915?
Were incentives
or concessions
reqested
pursuant to
Government
Code section
65915 approved?
Please indicate
the status of the
application.

Notes+
0 00 0 0 0
0 A
ontain auto-calculation formulasbility by Household Incomes Density Bonus Law Applications 10 Applications Submitted
ITEM 6.7
Jurisdiction Laguna Woods ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2022 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 6th Cycle 10/15/2021 - 10/15/2029 Table A2
23 Prior APN+ Current APN Street Address Project Name+ Local Jurisdiction Tracking ID+ Unit Category (SFA,SFD,2 to 4,5+,ADU,MH) Tenure R=Renter O=Owner Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low- Income Deed Restricted Low- Income Non Deed Restricted Moderate- Income Deed Restricted Moderate- Income Non Deed Restricted Summary Row: Start Data Entry Below 0 0 0 00 0
N/A
Project Identifier
Annual Building Activity Report Summary - New Construction, Entitled, Permits and Completed Unit 1 Unit Types Affordability by Household Incomes - Completed Entitleme 4 ITEM 6.7
Cells in grey contain auto-calculation formulas
56 89
Above
ModerateIncome
Entitlement
Date Approved # of Units issued Entitlements Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted Low- Income Deed Restricted Low- Income Non Deed Restricted Moderate- Income Deed Restricted Moderate- Income Non Deed Restricted Above Moderate- Income Building Permits Date Issued # of Units Issued Building Permits Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted 0 00 000 0 0 0 000
0 0
Note: "+" indicates an optional field
ts
ent Affordability by Household Incomes - Building Permits 7 ITEM 6.7
Streamlining Infill
11 12 13 14 15 16 17
Low- Income
Deed
Restricted
Low- Income
Non Deed
Restricted
ModerateIncome Deed
Restricted
ModerateIncome Non
Deed Restricted
Above
ModerateIncome
Certificates of
Occupancy or other
forms of readiness
(see instructions) Date
Issued
# of Units
issued
Certificates of
Occupancy or
other forms of
readiness
How many of the
units were
Extremely Low
Income?+
Was Project
APPROVED using
GC 65913.4(b)?
(SB 35 Streamlining)
Y/N
Infill Units?
Y/N+
Assistance Programs
for Each Development
(may select multiple -
see instructions)
Deed Restriction
Type
(may select multiple -
see instructions)
000 0 0 0 00
0 Housing with Financial Assistance
and/or Deed Restrictions Affordability by Household Incomes - Certificates of Occupancy 10 ITEM 6.7
Housing without Financial
Assistance or Deed
Restrictions
Term of Affordability
or Deed Restriction Notes
18 19 20 21 22 23 24 25
For units affordable without
financial assistance or deed
restrictions, explain how the
locality determined the units
were affordable
(see instructions)
Term of Affordability or
Deed Restriction (years)
(if affordable in perpetuity
enter 1000)+
Number of
Demolished/Dest
royed Units
Demolished or
Destroyed Units
Demolished/Des
troyed Units
Owner or
Renter
Total Density Bonus Applied to
the Project (Percentage
Increase in Total Allowable
Units or Total Maximum
Allowable Residential Gross
Floor Area)
Number of Other
Incentives,
Concessions, Waivers,
or Other Modifications
Given to the Project
(Excluding Parking
Waivers or Parking
Reductions)
List the incentives,
concessions,
waivers, and
modifications
(Excluding Parking
Waivers or Parking
Modifications)
Did the project receive a
reduction or waiver of
parking standards? (Y/N)
Notes+
00 Demolished/Destroyed Units Density Bonus
ITEM 6.7
Jurisdiction Laguna Woods ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2022 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 6th Cycle 10/15/2021 - 10/15/2029 1 Projection Period 34
RHNA Allocation by
Income Level
Projection Period -
06/30/2021-
10/14/2021
2021 2022 2023 2024 2025 2026 2027 2028 2029 Total Units to Date (all years) Total Remaining RHNA by Income Level Deed Restricted - - - - - - - - - -
Non-Deed Restricted - - - - - - - - - - Deed Restricted - - - - - - - - - - Non-Deed Restricted - - - - - - - - - - Deed Restricted - - - - - - - - - - Non-Deed Restricted - - - - - - - - - -
Above Moderate 542 - - - - - - - - - - - 542
997
- - - - - - - - - - - 997
5 67
Extremely low-Income
Need 2021 2022 2023 2024 2025 2026 2027 2028 2029
Total Units to
Date
Total Units
Remaining
64 - - - - - - - - - - 64
136
Please note: For the last year of the 5th cycle, Table B will only include units that were permitted during the portion of the year that was in the 5th cycle. For the first year of the 6th cycle, Table B will only include units that were permitted since the start of the planning period. Projection Period units are in a separate column.

Total RHNA
Total Units
Income Level
Very LowLowExtremely Low-Income Units*
Note: units serving extremely low-income households are included in the very low-income RHNA progress and must be reported as very low-income units in section 7 of Table A2. They must also be reported in the extremely low-income category (section 13) in Table A2 to be counted as progress toward meeting the extremely low-income housing need determined pursuant to Government Code 65583(a)(1).*Extremely low-income houisng need determined pursuant to Government Code 65583(a)(1). Value in Section 5 is default value, assumed to be half of the very low-income RHNA. May be overwritten.

Progress toward extremely low-income housing need, as determined pursuant to Government Code 65583(a)(1).

Please note: The APR form can only display data for one planning period. To view progress for a different planning period, you may login to HCD's online APR system, or contact HCD staff at [email protected]. 192
-
This table is auto-populated once you enter your jurisdiction name and current year data. Past year information comes from previous APRs. -
Moderate
127 136 192
Please contact HCD if your data is different than the material supplied here -
2 Table B
Regional Housing Needs Allocation Progress
Permitted Units Issued by Affordability
127
ITEM 6.7
Jurisdiction Laguna Woods ANNUAL ELEMENT PROGRESS REPORT Reporting Year 2022 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 6th Cycle 10/15/2021 - 10/15/2029 Date of Rezone Rezone Type
2 4 5 6 7 9 10 11
APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Date of Rezone Very Low- Income Low-Income Moderate-Income Above Moderate- Income Rezone Type Parcel Size (Acres) General Plan Designation Zoning Minimum Density Allowed Maximum Density Allowed Realistic Capacity Vacant/Nonvacant Description of Existing Uses N/A
Note: "+" indicates an optional fieldCells in grey contain auto-calculation formulas Summary Row: Start Data Entry Below
3 8
Project Identifier RHNA Shortfall by Household Income Category Sites Description 1 Sites Identified or Rezoned to Accommodate Shortfall Housing Need and No Net-Loss Law Table C
ITEM 6.7
Jurisdiction Laguna Woods
Reporting Year 2022 (Jan. 1 - Dec. 31)
123 4
Name of Program Objective Timeframe in H.E Status of Program Implementation Program H-1.1.1. Rezone
the 17 potential housing
sites identified in the
Housing Sites Inventory
and Analysis (Exhibit C)
to accommdate the City's
housing needs allocation
(Table H-1).

Policy Objective H-1.1. Make sites
available to accommodate current and
projected housing needs for groups at
all income levels, in accordance with
California Government Code Section
65583(c)(1).

Calendar Year 2022
Not yet Implemented: The City Council adopted the 2021-2029 General Plan Housing Element in August 2022. Rezoning work is in-process and will be considered for adoption following HCD's certification of the 2021-2029 General Plan Housing Element.

Program H-1.2.1. Continue
to maintain website
information regarding
fees, exactions, and
affordability requirements
imposed by the City that
are applicable to housing
development projects, in
accordance with
California Government
Code Section 65940.1.

Policy Objective H-1.2. Assist in the
development of adequate housing to
meet the needs of extremely low, very
low, low-, and moderate-income
households.

Ongoing Ongoing: Information responsive to California Government Code Section 65940.1 is available on the City's website.

Program H-1.2.2. Prepare
and maintain a webpage
with information related
to the 17 potential
housing sites identified in
the Housing Sites
Inventory and Analysis
(Exhibit C), including a
Geographic Information
System (GIS) map layer
with geospatial
information.

Policy Objective H-1.2. Assist in the
development of adequate housing to
meet the needs of extremely low, very
low, low-, and moderate-income
households.

Calendar Year 2022
Not yet Implemented: The City Council adopted the 2021-2029 General Plan Housing Element in August 2022. Information regarding the Housing Sites Inventory and Analysis is available on the City's website. A GIS map layer will be added following HCD's certification of the 2021-2029 General Plan Housing Element.

Program H-1.2.3. Conduct
a market study and then
amend the existing
inclusionary housing
ordinance to modify the
minimum percentages of
new housing units that
must be deed-restricted
for extremely low, very
low, and low-income
households, as feasible
and advantageous to
promote the development
of affordable housing.

Policy Objective H-1.2. Assist in the
development of adequate housing to
meet the needs of extremely low, very
low, low-, and moderate-income
households.

Calendar Year 2022
Not yet Implemented: The City released a Request for Proposals for Inclusionary Housing Market Study Services in March 2022, but received no proposals by the April 2022 deadline. Staff subsequently identified a potential consultant and obtained a proposal in January 2023. Staff's review of that proposal is underway.

Housing Programs Progress Report
Describe progress of all programs including local efforts to remove governmental constraints to the maintenance, improvement, and development of housing as identified in the housing element.

Table D
Program Implementation Status pursuant to GC Section 65583

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
ITEM 6.7
Program H-1.2.4. Adopt an
ordinance creating an
expedited and fee
reduced lot consolidation
process for
consolidations involving
any one or more of the 17
potential housing sites
identified in the Housing
Sites Inventory and
Analysis (Exhibit C) for
the purpose of developing
housing projects in which
at least 5% of housing
units are affordable for
extremely low income
households; at least 10%
of housing units are
affordable for very low or
low-income households;
or, at least 50% of
housing units are
affordable for moderateincome households. To
be eligible, the housing
units shall be subject to
an affordability covenant
for at least 55 years.

Policy Objective H-1.2. Assist in the
development of adequate housing to
meet the needs of extremely low, very
low, low-, and moderate-income
households.

Calendar Year 2022
Not yet Implemented: The City Council adopted the 2021-2029 General Plan Housing Element in August 2022. An ordinance creating an expedited and fee reduced lot consolidation process will be considered for adoption following HCD's certification of the 2021-2029 General Plan Housing Element.

Program H-1.2.5. Adopt an
ordinance waiving or
reducing City building
permit fees for housing
projects in which at least
5% of housing units are
affordable for extremely
low income households;
at least 10% of housing
units are affordable for
very low or low-income
households; or, at least
50% of housing units are
affordable for moderateincome households. To
be eligible, the housing
units shall be subject to
an affordability covenant
for at least 55 years.

Policy Objective H-1.2. Assist in the
development of adequate housing to
meet the needs of extremely low, very
low, low-, and moderate-income
households.

Calendar Year 2022
Not yet Implemented: The City Council adopted the 2021-2029 General Plan Housing Element in August 2022. An ordinance waiving or reducing City building permit fees for qualifying housing projects is tentatively scheduled for consideration of adoption concurrent with the next regularly scheduled fee schedule adoption in spring 2023.

Program H-1.2.6. Amend
various, existing housingrelated provisions of
the Laguna Woods
Municipal Code to
promote regulatory
clarity.

Policy Objective H-1.2. Assist in the
development of adequate housing to
meet the needs of extremely low, very
low, low-, and moderate-income
households.

Calendar Year 2022
Not yet Implemented: The City Council adopted the 2021-2029 General Plan Housing Element in August 2022. The amendments identified in this program are tenatively scheduled for consideration of adoption in April 2023.

Program H-1.2.7.

Formalize written
procedures for the
application and
processing of housing
projects eligible for
streamlined, ministerial
approval pursuant to
California Government
Code Section 65913.4.

Policy Objective H-1.2. Assist in the
development of adequate housing to
meet the needs of extremely low, very
low, low-, and moderate-income
households.

Calendar Year 2022
Not yet Implemented: The City Council adopted the 2021-2029 General Plan Housing Element in August 2022. Formalization of written procedures for project processing pursuant to California Government Code Section 65913.4 is tentatively scheduled to be complete by July 2023.

Program H-1.2.8.

Investigate potential
incentives for the
development of housing
projects with features that
exceed the minimum
requirements set forth in
the California Building
Energy Efficiency
Standards. If feasible and
economical, adopt such
incentives.

Policy Objective H-1.2. Assist in the
development of adequate housing to
meet the needs of extremely low, very
low, low-, and moderate-income
households.

Within Six Months of
Each Triennial California
Building
Standards Code Effective
Date for Investigation
Not yet Implemented: The effective date of the 2022 California Building Standards Code was January 1, 2023. Investigation of potential incentives is scheduled to be complete by June 30, 2023.

Program H-1.3.1. Continue
to consider transitional
housing a residential use
of property, subject only
to those restrictions that
apply to other residential
dwellings of the same
type in the same zoning
district.

Policy Objective H-1.3. Provide
reasonable accommodations for
housing designed for, intended for
occupancy by, or with supportive
services for, persons with disabilities.

Ongoing
Ongoing: The Laguna Woods Municipal Code considers transitional housing a residential use of property, subject only to those restrictions that apply to other residential dwellings of the same type in the same zoning district.

ITEM 6.7
Program H-1.3.2. Continue
to consider supportive
housing a residential use
of property, subject only
to those restrictions that
apply to other residential
dwellings of the same
type in the same zoning
district.

Policy Objective H-1.3. Provide
reasonable accommodations for
housing designed for, intended for
occupancy by, or with supportive
services for, persons with disabilities.

Ongoing
Ongoing: The Laguna Woods Municipal Code considers supportive housing a residential use of property, subject only to those restrictions that apply to other residential dwellings of the same type in the same zoning district.

Program H-1.3.3. Continue
to permit supportive
housing by right in all
zoning districts where
multifamily and mixed
uses are permitted.

Policy Objective H-1.3. Provide
reasonable accommodations for
housing designed for, intended for
occupancy by, or with supportive
services for, persons with disabilities.

Ongoing Ongoing: The Laguna Woods Municipal Code permits supportive housing by right in all zoning districts where multifamily and mixed uses are permitted.

Program H-1.3.4. Amend
various, existing housingrelated provisions of the
Laguna Woods Municipal
Code to conform to state
law.

Policy Objective H-1.3. Provide
reasonable accommodations for
housing designed for, intended for
occupancy by, or with supportive
services for, persons with disabilities.

Calendar Year 2022
Not yet Implemented: The City Council adopted the 2021-2029 General Plan Housing Element in August 2022. The amendments identified in this program are tenatively scheduled for consideration of adoption in April 2023.

Program H-1.4.1. Continue
to maintain an ordinance
that conforms to the
provisions of California
Government Code Section
65852.2 related to
accessory dwelling units
and junior accessory
dwelling units, including
amending the ordinance
as necessary.

Policy Objective H-1.4. Incentivize and
promote the creation of accessory
dwelling units that can be offered at
affordable rent for very low, low-, or
moderate-income households.

Ongoing
Ongoing: The Laguna Woods Municipal Code conforms to the provisions of California Government Code Section 65852.2 related to accessory dwelling units and junior accessory dwelling units.

Program H-1.4.2. Prepare
and maintain a webpage
with information related
to Laguna Woods
Municipal Code
requirements, processing
procedures, and
incentives pertaining to
the development of
accessory dwelling units
and junior accessory
dwelling units. Prepare
and maintain a flyer with
related information.

Policy Objective H-1.4. Incentivize and
promote the creation of accessory
dwelling units that can be offered at
affordable rent for very low, low-, or
moderate-income households.

Calendar Year 2023 Not yet Implemented: This program is scheduled for implementation in Calendar Year 2023.

Program H-1.4.3.

Designate and maintain a
“specialist” to assist with
the processing and
approval of applications
to develop accessory
dwelling units and junior
accessory dwelling units.

Policy Objective H-1.4. Incentivize and
promote the creation of accessory
dwelling units that can be offered at
affordable rent for very low, low-, or
moderate-income households.

Calendar Year 2022
Implemented: The City's Development Programs Analyst has been designated as a "specialist" to assist with the processing and approval of applications to develop accessory dwelling units and junior accessory dwelling units.

Program H-1.5.1. Continue
to maintain an ordinance
that conforms to the
provisions of California
Government Code Section
65583 related to
emergency shelters,
including amending the
ordinance as necessary.

Policy Objective H-1.5. Make sites
available to accommodate emergency
housing needs for homeless persons
and families, in accordance with
California Government Code Section
65583(a)(7).

Ongoing Ongoing: The Laguna Woods Municipal Code conforms to the provisions of California Government Code Section 65583 related to emergency shelters.

Program H-2.1.1. Prepare
and maintain a webpage
with information on home
improvement-related
financial assistance
opportunities available to
extremely low, very low,
and low-income
households. Train City
staff to make referrals
using the webpage.

Policy Objective H-2.1. Conserve and
improve the condition of the existing
affordable housing stock.

Calendar Year 2023 Not yet Implemented: This program is scheduled for implementation in Calendar Year 2023.

Program H-2.1.2.

Investigate potential
incentives for property
owners to extend existing
affordability covenants
beyond the planned
expiration date. If feasible
and economical, adopt
such incentives.

Policy Objective H-2.1. Conserve and
improve the condition of the existing
affordable housing stock.

Calendar Year 2024 for
Investigation
Not yet Implemented: This program is scheduled for implementation in Calendar Year 2024 (for investigation).

ITEM 6.7
Program H-2.2.1. Prepare
and maintain a webpage
with information on home
improvement-related
financial assistance
opportunities available to
persons with special
needs. Train City staff to
make referrals using the
webpage.

Policy Objective H-2.2. Promote
accessible and accommodating
housing options for persons with
special needs.

Calendar Year 2023 Not yet Implemented: This program is scheduled for implementation in Calendar Year 2023.

Program H-2.2.2. Adopt an
ordinance waiving or
reducing City building
permit fees for
improvements to the
home of a person at least
60 years of age with a
qualifying disability that
are made to accommodate
that disability, as
provided for by California
Health and Safety Code
Section 17951.7. Consider
including provisions
allowing for similar
building permit fee
waivers or reductions for
improvements to the
home of a person with a
qualifying disability that
are made to accommodate
that disability, regardless
of age. Prepare and
maintain a flyer with
related information.

Policy Objective H-2.2. Promote
accessible and accommodating
housing options for persons with
special needs.

Calendar Year 2022
Implemented: The City Council adopted the 2021-2029 General Plan Housing Element in August 2022. An ordinance waiving or reducing City building permit fees for qualifying home improvements is tentatively scheduled for consideration of adoption concurrent with the next regularly scheduled fee schedule adoption in spring 2023.

Program H-2.2.3. Provide
opportunities for
reimbursements, grants,
or other forms of financial
assistance to support
home improvements that
increase accessibility or
functionality for persons
with special needs.

Policy Objective H-2.2. Promote
accessible and accommodating
housing options for persons with
special needs.

Calendar Year 2022 (as
funding permits)
Not yet Implemented: The City is developing a program using Permanent Local Housing Allocation funds to provide financial assistance to support home improvements that increase accessibility or functionality for persons with special needs.

Program H-2.3.1.

Formalize a proactive
code enforcement
program that focuses on
housing-related
rehabilitation needs,
results in repairs, and
seeks to mitigate potential
cost, displacement, and
relocation impacts on
residents.

Policy Objective H-2.3. Promote
housing conservation and
revitalization.

Calendar Year 2025 Not yet Implemented: This program is scheduled for implementation in Calendar Year 2025.

Program H-3.1.1. Improve
pedestrian accessibility
on sidewalks, curb
ramps, crosswalks, and
other public property
connecting housing with
transit stops, public
buildings, and
businesses.

Policy Objective H-3.1. Enhance access
to housing.

Ongoing (as funding
permits)
Ongoing: The City's Americans with Disabilities Act (ADA) Pedestrian Accessibility Project: Phase 6 is scheduled to be complete in Fiscal Year 2022-23. In March 2023, the City was notified by the County of Orange that an additional project phase is being recommended to receive Community Development Block Grant funding in Fiscal Year 2023-24. The Orange County Board of Supervisors is expected to approve funding awards in spring 2023.

Program H-3.1.2. Pursue
partnerships and seek
funding to provide
Laguna Woods-based
housing mobility
counseling services. If
feasible and economical,
implement such services.

Policy Objective H-3.1. Enhance access
to housing.

Biennial Process to
Identify Interested and
Qualified Service
Providers; Beginning in
Calendar Year 2023
Not yet Implemented: This program is scheduled for implementation in Calendar Year 2023 (and biennially thereafter).

ITEM 6.7
Program H-3.1.3. Adopt an
ordinance waiving or
reducing City building
permit fees, or providing
other incentives, for
housing projects that
prepare and implement an
affirmative marketing plan
designed to
attract renters or buyers
of diverse demographics,
including persons of
any race, color, religion,
sex, handicap, familial
status, or national origin.

Policy Objective H-3.1. Enhance access
to housing. Calendar Year 2023 Not yet Implemented: This program is scheduled for implementation in Calendar Year 2023.

Program H-3.2.1. Prepare
and maintain a webpage
with information on
housing mediation,
foreclosure assistance,
and multilingual tenant
legal counseling services.

Train City staff to make
referrals using the
webpage.

Policy Objective H-3.2. Protect existing
residents from displacement. Calendar Year 2023 Not yet Implemented: This program is scheduled for implementation in Calendar Year 2023.

Program H-3.2.2. Pursue
partnerships and seek
funding to provide
Laguna Woods-based
housing mediation,
foreclosure assistance,
and multilingual tenant
legal counseling services.

If feasible and
economical, implement
such services.

Policy Objective H-3.2. Protect existing
residents from displacement.

Biennial Process to
Identify Interested and
Qualified Service
Providers; Beginning in
Calendar Year 2023
Not yet Implemented: This program is scheduled for implementation in Calendar Year 2023 (and biennially thereafter).

Program H-3.2.3.

Investigate potential
hazard mitigation
measures that would
reduce or eliminate the
long-term risk of
residential displacement
as a result of future
disasters. If feasible and
economical, implement
such hazard mitigation
measures.

Policy Objective H-3.2. Protect existing
residents from displacement.

Calendar Year 2024 for
Investigation
Not yet Implemented: This program is scheduled for implementation in Calendar Year 2024 (for investigation).

Program H-4.1.1. Host an
annual public forum to:

Provide public
education related to the
purpose and scope of the
housing element, as well
as progress in its
implementation; and
Solicit public input on
the implementation of the
housing element, existing
and projected housing
needs for all economic
segments, and resources
and constraints relevant
to meeting housing
needs.

Policy Objective H-4.1. Conduct annual
monitoring of the housing element.

Annually; Beginning in
Calendar Year 2023
Not yet Implemented: This program is scheduled for implementation in Calendar Year 2023 (and annually thereafter).

ITEM 6.7
Program H-4.1.2. Prepare
and submit an annual
report to the City
Council, California
Governor’s Office of
Planning and Research,
and HCD with:

The information
required by California
Government Code Section
65400(a)(2), in the form
and manner specified;
and
A statement regarding
the general plan’s internal
consistency and, if
necessary, the
identification of corrective
actions that will be taken
to resolve any internal
inconsistency.

Policy Objective H-4.1. Conduct annual
monitoring of the housing element. Annually; Prior to April 1 Annually: California Government Code Section 65400 requires the housing element portion of the annual report to be prepared through the use of standards, forms, and definitions adopted by HCD, and be considered at a public meeting before the City Council where members of the public must be allowed to provide oral testimony and written comments. The public meeting for this 2022 General Plan Annual Report was held concurrent with the City Council’s adjourned regular meeting on March 22, 2023.

A final copy of the report will be submitted to OPR and HCD after the March 22, 2023 meeting.

Program H-4.2.1. Deliver
each adopted housing
element (including
amendments thereto) to
the El Toro Water District,
in accordance with
California Government
Code Section 65589.7(a).

Policy Objective H-4.2. Coordinate
implementation of this housing element
with the water and sewer agency.

Immediately Following
Each Adoption
As Needed: Adopted housing elements will be delivered to the El Toro Water District as required by California Government Code Section 65589.7(a).

ITEM 6.7
Jurisdiction Laguna Woods ANNUAL ELEMENT PROGRESS REPORT Reporting Period 2022 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 6th Cycle 10/15/2021 - 10/15/2029 Description of Commercial
Development Bonus
Commercial Development Bonus
Date Approved
34 APN Street Address Project Name+ Local Jurisdiction Tracking ID+ Very Low Income Low Income Moderate Income Above Moderate Income Description of Commercial Development Bonus Commercial Development Bonus Date Approved N/A
Summary Row: Start Data Entry Below
Units Constructed as Part of Agreement
Commercial Development Bonus Approved pursuant to GC Section 65915.7 Table E
Note: "+" indicates an optional field
Project Identifier
1 2
Cells in grey contain auto-calculation formulas
(CCR Title 25 §6202)
Annual Progress Report January 2020
ITEM 6.7
Jurisdiction Laguna Woods ANNUAL ELEMENT PROGRESS REPORT Note: "+" indicates an optional field Reporting Period 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulasPlanning Period 6th Cycle 10/15/2021 - 10/15/2029 The description should adequately document how each unit complies with subsection (c) of Government Code Section 65583.1+.

For detailed reporting requirements, see the chcklist here:

Extremely LowIncome+ Very Low-Income+ Low-Income+ TOTAL UNITS+ Extremely Low- Income+ Very Low- Income+ Low-Income+ TOTAL UNITS+ https://www.hcd.ca.gov/community‐ development/docs/adequate‐sites‐checklist.pdf Rehabilitation ActivityPreservation of Units At-RiskAcquisition of UnitsMobilehome Park PreservationTotal Units by Income Table F
Please note this table is optional: The jurisdiction can use this table to report units that have been substantially rehabilitated, converted from non-affordable to affordable by acquisition, and preserved, including mobilehome park preservation, consistent with the standards set forth in Government Code section 65583.1, subdivision (c). Please note, motel, hotel, hostel rooms or other structures that are converted from non-residential to residential units pursuant to Government Code section 65583.1(c)(1)(D) are considered net-new housing units and must be reported in Table A2 and not reported in Table F.

Activity Type
Units that Do Not Count Towards RHNA+
Listed for Informational Purposes Only
Units that Count Towards RHNA +
Note - Because the statutory requirements severely limit what can be counted, please contact HCD to receive the password that will enable you to populate these fields.

Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites pursuant to Government Code section 65583.1(c) Annual Progress Report January 2020
ITEM 6.7
Jurisdiction Laguna Woods ANNUAL ELEMENT PROGRESS REPORT Reporting Period 2022 (Jan. 1 - Dec. 31) Housing Element ImplementationPlanning Period 6th Cycle 10/15/2021 - 10/15/2029 23 Prior APN+ Current APN Street Address Project Name+
Local
Jurisdiction
Tracking ID+
Unit Category
(2 to 4,5+)
Tenure
R=Renter
Very LowIncome Deed
Restricted
Very LowIncome Non
Deed
Restricted
Summary Row: Start Data Entry Below
N/A
Tab
Above Moderate Income Units Converted to Moderate
For up to 25 percent of a jurisdiction’s moderate-income regional housing need allocation, the planning agency may include the number of units in an existing multifamily buil information to this table, please ensure housing developments Project Identifier Unit Types
1 Affo
ITEM 6.7
Note: "+" indicates
an optional fieldCells in grey contain auto-calculation formulas Notes
6 Low- Income Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate- Income
Deed Restricted
ModerateIncome Non
Deed Restricted
Above
ModerateIncome
Total Moderate Income Units
Converted from Above
Moderate
Date Converted Notes
ble F2
e Income Pursuant to Government Code section 65400.2
ding that were converted to deed-restricted rental housing for moderate-income households by the imposition of affordability covenants and restrictions for the unit. Before adding meet the requirements described in Government Code 65400.2(b). 4 5
ordability by Household Incomes After Conversion Units credited toward Above Moderate RHNA ITEM 6.7
Jurisdiction Laguna Woods
Reporting Period 2022 (Jan. 1 - Dec. 31)Planning Period 6th Cycle 10/15/2021 - 10/15/2029 ANNUAL ELEMENT PROGRESS REPORT Housing Element Implementation
23 4
APN Street Address Project Name+ Local Jurisdiction Tracking ID+ Realistic Capacity Identified in the Housing Element Entity to whom the site transferred Intended Use for Site N/A
1 Summary Row: Start Data Entry Below
Note: "+" indicates an optional fieldCells in grey contain auto-calculation formulas Table G
Locally Owned Lands Included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed of Project Identifier
NOTE: This table must only be filled out if the housing element sites inventory contains a site which is or was owned by the reporting jurisdiction, and has been sold, leased, or otherwise disposed of during the reporting year.

ITEM 6.7
Jurisdiction Laguna Woods Note: "+" indicates an optional field Reporting Period 2022
(Jan. 1 - Dec.
31)
Cells in grey contain auto-calculation
formulas
Designation Size Notes
1 2 34 5 6 7
APN Street Address/Intersection Existing Use Number of Units Surplus Designation Parcel Size (in acres) Notes N/A
NOTE: This table is meant to contain an invenory of
ALL surplus/excess lands the reporting jurisdiction
owns
Summary Row: Start Data Entry Below
Parcel Identifier

ANNUAL ELEMENT PROGRESS REPORT
Housing Element Implementation
Table H
Locally Owned Surplus Sites
For Orange County jurisdictions, please format the APN's as follows:999-999-99 ITEM 6.7
Jurisdiction Laguna Woods ANNUAL ELEMENT PROGRESS REPORT Note: indicates an
optional field
Reporting Period 2022 (Jan. 1 - Dec. 31) Housing Element Implementation Cells in grey contain auto-calculation formulas
Planning Period 6th Cycle 10/15/2021 - 10/15/2029
Project Type Date Notes
23 APN Street Address Project Name+ Local Jurisdiction Tracking ID+ Activity Date Very Low Income Low Income Moderate Income Above Moderate Income Notes N/A
Table I
Units Constructed Pursuant to Government Code 65852.21 and Applications for Lot Splits Pursuant to Government Code 66411.7 (SB9) NOTE: SB 9 PROJECTS ONLY. This table only needs to be completed if there were lot splits applied for pursuant to Government Code 66411.7 OR units constructed pursuant to 65852.21. Units entitled/permitted/constructed must also be reported in Table A2. Applications for these units must be reported in Table A.

Summary Row: Start Data Entry Below
Project Identifier Unit Constructed
1 4
Annual Progress Report January 2020
ITEM 6.7
Jurisdiction Laguna Woods ANNUAL ELEMENT P
Reporting Period 2022 (Jan. 1 - Dec. 31) Housing Element ImpPlanning Period 6th Cycle 10/15/2021 - 10/15/2029 Project Type Date
23 APN Street Address Project Name+ Local Jurisdiction Tracking ID+ Unit Category (SH - Student Housing) Date Very Low- Income Deed Restricted Very Low- Income Non Deed Restricted N/A
Summary Row: Start Data Entry Below
Table J
Student housing development for lower income students for which was granted a density bonus p Project Identifier
1 NOTE: STUDENT HOUSING WITH DENSITY BONUS ONLY. This
table only needs to be completed if there were student housing projects WITH a density bonus approved pursuant to
Government Code65915(b)(1)(F)
Annual Progress Report January 2020
ITEM 6.7

ROGRESS REPORT
plementation
Units (Beds/Student
Capacity) Granted
Density Bonus
Notes
56 Low- Income Deed
Restricted
Low- Income
Non Deed
Restricted
Moderate- Income
Deed Restricted
Moderate- Income
Non Deed
Restricted
Above
ModerateIncome
Total Additional Beds
Created Due to Density
Bonus
Notes
Note: "+" indicates an optional field
Cells in grey contain auto-calculation formulas
pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915 Units (Beds/Student Capacity) Approved
4 Annual Progress Report January 2020
ITEM 6.7
Jurisdiction Laguna Woods
Reporting Year 2022 (Jan. 1 - Dec. 31)
Planning Period 6th Cycle 10/15/2021 - 10/15/2029
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
0 0
Units by Structure Type Entitled Permitted Completed
SFA 0 0 0
SFD 0 0 0
2 to 4 0 0 0
5+ 0 0 0
ADU 0 0 0
MH 0 0 0
Total 0 0 0
0 0
0 0
0 0
0 0
Income Rental Ownership Total
Very Low 0 00
Low 0 00
Moderate 0 00
Above Moderate 0 00
Total 0 00
Cells in grey contain auto-calculation formulas
Income Level
Very Low
Low
Moderate
Above Moderate
Units Constructed - SB 35 Streamlining Permits
Number of Streamlining Applications Approved
Total Developments Approved with Streamlining
Total Units Constructed with Streamlining
Total Housing Applications Submitted:

Number of Proposed Units in All Applications Received:

Total Housing Units Approved:

Total Housing Units Disapproved:

Total Units
Housing Applications Summary
Use of SB 35 Streamlining Provisions
Note: Units serving extremely low-income households are included in the very low-income permitted units totals Number of Applications for Streamlining
Building Permits Issued by Affordability Summary
ITEM 6.7
Jurisdiction Laguna Woods
Reporting Year 2022 (Jan. 1 - Dec. 31)
Total Award Amount Total award amount is auto‐populated based on amounts entered in rows 15‐26.

Task $ Amount Awarded $ Cumulative Reimbursement
Requested
Other
Funding Notes
Housing Needs Assessment $12,500.00 $0.00 None
Necessary for
implementing ‐
Updated Housing
Needs Assessment
Housing Constraints Analysis $18,750.00 $0.00 None
Necessary for
implementing ‐
Updated Housing
Constraints Analysis
Technical Assistance $18,750.00 $0.00 None
Necessary for
implementing ‐ As‐
needed consultant
support
California Environmental Quality
Act (CEQA) $15,000.00 $0.00
Local
General
Fund
Necessary for
implementing ‐
Environmental review
Summary of entitlements, building permits, and certificates of occupancy (auto‐populated from Table A2) Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
0 0
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
0 0
Current Year
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
Deed Restricted 0
Non-Deed Restricted 0
0 0
Moderate
Above Moderate
Total Units
Completed Entitlement Issued by Affordability Summary
Income Level
Very Low
Low
Moderate
Above Moderate
Total Units
Building Permits Issued by Affordability Summary
Income Level
Very Low
Low
Total Units
Certificate of Occupancy Issued by Affordability Summary Income Level
Very Low
Low
Moderate
Above Moderate
In Progress

ANNUAL ELEMENT PROGRESS REPORT
Local Early Action Planning (LEAP) Reporting
(CCR Title 25 §6202)
In Progress
Please update the status of the proposed uses listed in the entity’s application for funding and the corresponding impact on housing within the region or jurisdiction, as applicable, categorized based on the eligible uses specified in Section 50515.02 or 50515.03, as applicable.
$                                                                                                                           65,000.00 Task Status
Completed
Completed
ITEM 6.7

6.8 CITY HALL REFURBISHMENT & SAFETY
PROJECT: PHASE 3
(NO REPORT)
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8.1 2021-2029 GENERAL PLAN HOUSING

ELEMENT UPDATE
This page is intentionally blank.

ITEM 8.1
CC  03-22-2023 ARM ITEM 8.1 – AR Page 1 of 4
City of Laguna Woods
Agenda Report
TO: Honorable Mayor and City Councilmembers
FROM: Christopher Macon, City Manager
FOR: March 22, 2023 Adjourned Regular Meeting
SUBJECT: 2021‐2029 General Plan Housing Element Update
Recommendation
Adopt a resolution titled:

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA
WOODS, CALIFORNIA, ADOPTING REVISIONS TO THE 2021-2029

GENERAL PLAN HOUSING ELEMENT, AND PROVIDING

DIRECTION AND MAKING FINDINGS RELATED TO ADOPTION OF
THE 2021-2029 GENERAL PLAN HOUSING ELEMENT PURSUANT

TO APPLICABLE STATE LAW
Background
The Regional Housing Needs Assessment (“RHNA”) is a process mandated by the State of California’s housing laws to determine existing and future housing needs for each city and unincorporated area. Once housing needs are quantified through the RHNA process, cities and counties are required to take certain land use planning actions to allow for the construction of new housing units to meet those needs. For additional information, please refer to Attachment A/Exhibit A.

From 1969 until the City’s incorporation on March 24, 1999, the County of Orange was responsible for RHNA compliance and land use planning in Laguna Woods.

Beginning on March 24, 1999, those responsibilities transferred locally to the City.

If the City had not incorporated, the County of Orange would have retained the authority to make land use planning decisions affecting Laguna Woods. With the ITEM 8.1
ITEM 8.1 – AR Page 2 of 4 CC  03-22-2023 ARM
City, land use planning is within the purview of the locally elected City Council.

The current 6th Cycle RHNA process (for the period of 10/2021–10/2029) resulted in the following housing needs allocation for the City:

Table 1: City’s Housing Needs Allocation
Income Level Number of Units
Very-low income 127 units
Low income 136 units
Moderate income 192 units
Above-moderate income 542 units
Total 997 units
Source: Southern California Association of Governments (“SCAG”) State law requires the City to update its General Plan Housing Element to plan for the 6th Cycle RHNA Housing Needs Allocation.

Please note that neither the RHNA nor General Plan Housing Element Update processes require the City or any private property owner to construct housing or discontinue any existing non-housing use. Frequently asked questions are answered in Attachment A/Exhibit A.

The City Council has held six public meetings preceding today’s meeting to discuss the General Plan Housing Element. Those meetings occurred on:
• May 5, 2021
• May 19, 2021
• June 2, 2021
• July 21, 2021
• February 9, 2022
• August 12, 2022
Agenda materials and other information from previous City Council meetings are available for public review at or from City Hall during normal working hours and on the City’s website (www.cityoflagunawoods.org/projects).

Discussion
Today’s meeting is an opportunity for City Council action, as well as public input, on proposed revisions to the 2021-2029 General Plan Housing Element Update (Attachment A), based on findings from HCD reported to the City on October 11, 2022. Staff recommends adoption of the proposed resolution.

ITEM 8.1
CC  03-22-2023 ARM ITEM 8.1 – AR Page 3 of 4
If the City Council adopts the proposed revised 2021‐2029 General Plan Housing Element Update at today’s meeting, the General Plan Housing Element would be submitted to HCD for review as required by California Government Code Section 65585. HCD would then have 60 days to report its findings to the City and indicate whether further revisions are necessary to substantially comply with state law.

HCD Review Findings
On August 12, 2022, the adopted General Plan Housing Element and HCD Housing Element Sites Inventory Form were submitted to HCD for review, as required by California Government Code Section 65585. HCD’s findings were reported to the City in a letter dated October 11, 2022 (Attachment B). The proposed revised 2021-2029 General Plan Housing Element Update includes revisions to comply with state law (Attachments C and D).

HCD Housing Element Sites Inventory Form
California Government Code Section 65583.3 requires the housing sites inventory portion of the General Plan Housing Element to be prepared using standards, form, and definitions adopted by HCD. The information required to complete HCD’s Housing Element Sites Inventory Form for the proposed revised 2021-2029 General Plan Housing Element Update is unchanged from the versions adopted by the City Council on February 9, 2022 and August 12, 2022, and is included as Attachment F. The electronic spreadsheet version of the information is available on the City’s website (www.cityoflagunawoods.org/projects). Interested parties may also contact the City Clerk’s Office at [email protected] or (949) 639-0512 to obtain an emailed copy of the electronic spreadsheet.

Environmental Review
The City Council adopted a Negative Declaration for the 2021-2029 General Plan Housing Element Update on February 9, 2022, in conformance with the provisions of the California Environmental Quality Act (“CEQA”) per State CEQA Guidelines Section 15070 and in conformance with the Local CEQA Procedures, which found that the 2021-2029 General Plan Housing Element Update will have less than significant effects on the environment.

The proposed revised 2021-2029 General Plan Housing Element Update contains administrative revisions to ensure compliance with State Housing Element Law ITEM 8.1
ITEM 8.1 – AR Page 4 of 4 CC  03-22-2023 ARM
and remains consistent with the project evaluated in the Initial Study and Negative Declaration for the 2021-2029 General Plan Housing Element Update that was adopted on February 9, 2022. No additional CEQA analysis of the revised 2021- 2029 General Plan Housing Element is required.

Fiscal Impact
Sufficient funds to support the preparation and adoption of the 2021‐2029 General Plan Housing Element Update are included in the City’s budget.

Staff anticipates that supplemental General Fund budget appropriations will be necessary to complete the state-mandated implementation of the programs included in the General Plan Housing Element, the extent of which is not yet known, but will be estimated after HCD finds the 2021‐2029 General Plan Housing Element Update and its programs to be in substantial compliance with state law.

Attachments: A – Proposed Resolution
Exhibit A – Proposed General Plan Housing Element
B – HCD Findings Letter dated October 11, 2022
C – Draft City Response to HCD Findings Letters dated October 11, 2022 D – Revisions for Proposed General Plan Housing Element (redline) E – Information Required to Complete HCD’s Housing Element Sites Inventory Form for the Proposed Revised General Plan Housing Element
ITEM 8.1
Attachment A
Proposed Resolution
This page is intentionally blank.

ITEM 8.1 – Attachment A
R 23-XX 1 XX-XX-2023
RESOLUTION NO. 23-XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAGUNA
WOODS, CALIFORNIA, ADOPTING REVISIONS TO THE 2021-2029

GENERAL PLAN HOUSING ELEMENT, AND PROVIDING

DIRECTION AND MAKING FINDINGS RELATED TO ADOPTION OF
THE 2021-2029 GENERAL PLAN HOUSING ELEMENT PURSUANT

TO APPLICABLE STATE LAW
WHEREAS, California Government Code Section 65300 requires every city to adopt a comprehensive, long-term general plan to guide physical development of the city and of any land outside its boundaries which, in the City’s judgment, bears relation to its planning; and
WHEREAS, California Government Code Section 65302 requires general plans to include a housing element with specific requirements for form and content set forth in California Government Code Section 65580 et al.; and WHEREAS, California Government Code Section 65588 requires general plan housing elements to be updated on either a five- or eight-year cycle; and WHEREAS, as required by and in accordance with state law, the City prepared an update of its General Plan Housing Element covering the 6th Cycle Planning Period spanning October 2021 through October 2029 and planning for the Regional Housing Needs Assessment’s 6th Cycle Housing Needs Allocation of 997 housing units, which was adopted by the City Council on February 9, 2022 and revised by the City Council on August 12, 2022 (“2021-2029 General Plan Housing Element Update”); and
WHEREAS, subsequent to the adoption of the 2021-2029 General Plan Housing Element Update, the City received and considered findings from the California Department of Housing and Community Development (“HCD”) dated October 11, 2022, and made corresponding revisions to comply with state law, which are incorporated into the revised 2021-2029 General Plan Housing Element Update attached hereto as Exhibit A and incorporated herein by this reference; and WHEREAS, based on the factors described in the revised 2021-2029 General Plan Housing Element Update [including, but not limited to, the analysis contained in Exhibit C (Housing Sites Inventory and Analysis) thereto, supported by the goals, policy objectives, and programs set forth in the General Plan Housing ITEM 8.1 – Attachment A
R 23-XX 2 XX-XX-2023
Element], the City Council finds that the existing uses on the 17 potential housing sites identified in the housing sites inventory to accommodate the Regional Housing Needs Assessment for lower income households are likely to be discontinued during the planning period, and therefore do not constitute an impediment to additional residential development during the planning period; and WHEREAS, the City Council adopted a Negative Declaration for the 2021- 2029 General Plan Housing Element Update on February 9, 2022, in conformance with the provisions of the California Environmental Quality Act (“CEQA”) per State CEQA Guidelines Section 15070 and in conformance with the Local CEQA Procedures, which found that the 2021-2029 General Plan Housing Element Update will have less than significant effects on the environment; and WHEREAS, the City Council finds that the revised 2021-2029 General Plan Housing Element Update contains administrative revisions to ensure compliance with State Housing Element Law and remains consistent with the project evaluated in the Initial Study and Negative Declaration for the 2021-2029 General Plan Housing Element Update that was adopted on February 9, 2022, and no additional CEQA analysis of the revised 2021-2029 General Plan Housing Element is required; and
WHEREAS, the City complied with California Assembly Bill 215 (2021- 2022) by (a) posting the draft revised 2021-2029 General Plan Housing Element Update, including the HCD Housing Element Sites Inventory Form, for public review on its website, and (b) emailing a link to the documents to all individuals and organizations that previously requested notices related to the 2021-2029 General Plan Housing Element Update, on March 8, 2023; and WHEREAS, on March 22, 2023, the City Council held a duly noticed public meeting regarding the revised 2021-2029 General Plan Housing Element Update at which the members of the City Council, utilizing their independent judgement, reviewed and considered all of the information, evidence, and testimony presented, both written and oral.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAGUNA

WOODS, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. The above recitals are true and correct.

ITEM 8.1 – Attachment A
R 23-XX 3 XX-XX-2023
SECTION 2. The City Council hereby adopts the revised 2021-2029 General Plan Housing Element Update (Exhibit A), subject to the City Manager modifying the revised 2021-2029 General Plan Housing Element Update to include information regarding the meeting at which it was adopted, including date, time, participation, noticing/posting, public comments, and votes taken/cast.

SECTION 3. The City Manager is directed to promptly submit a copy of the adopted revised 2021-2029 General Plan Housing Element Update to HCD, as required by California Government Code Section 65585(g), and to the El Toro Water District, as required by California Government Code Section 65589.7(a).

SECTION 4. The Mayor shall sign this resolution and the City Clerk shall attest and certify to the passage and adoption thereof.

PASSED, APPROVED AND ADOPTED on this XX day of XX 2023. _______________________________
CYNTHIA S. CONNERS, Mayor
ATTEST:
________________________________
YOLIE TRIPPY, CMC, City Clerk
ITEM 8.1 – Attachment A
R 23-XX 4 XX-XX-2023

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF LAGUNA WOODS )
I, YOLIE TRIPPY, City Clerk of the City of Laguna Woods, do HEREBY CERTIFY that the foregoing Resolution No. 23-XX was duly adopted by the City Council of the City of Laguna Woods at an adjourned regular meeting thereof, held on the XX day of XX 2023, by the following vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:
_________________________________
YOLIE TRIPPY, CMC, City Clerk
ITEM 8.1
Exhibit A to Attachment A
Proposed General Plan Housing Element
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6TH CYCLE (2021-2029)
MARCH 2023

CITY OF LAGUNA WOODS

GENERAL PLAN

HOUSING ELEMENT

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INTRODUCTION
California Government Code Section 65300 requires each city to adopt a comprehensive, long-term general plan to guide physical development. The Laguna Woods General Plan reflects the City of Laguna Woods’ intentions about land use and its relationship to circulation, conservation, housing, noise, open space, and safety. This element identifies priority housing issues in Laguna Woods and sets forth goals and policies to achieve balance between the needs of the community and future development.

PURPOSE AND SCOPE
State law requires that general plans include a housing element, as follows:

California Government Code Section 65302(c): [The general plan must include] a housing element as provided in [California Government Code] Article 10.6 (commencing with Section 65580).

California Government Code Section 65583: The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory-built housing, mobilehomes, and emergency shelters, and shall make adequate provision for the existing and projected needs of all economic segments of the community.

California Government Code Section 65583(a)(3) specifically requires that housing elements include “an inventory of land suitable and available for residential development, including vacant sites and sites having realistic and demonstrated potential for redevelopment during the planning period to meet the locality’s housing need for a designated income level, and an analysis of the relationship of zoning and public facilities and services to these sites.” For the purpose of that requirement, “housing needs for a designated income level” are quantified through the Regional Housing Needs Assessment (RHNA), which is discussed further in this element.

Additional statutory requirements related to the development and adoption

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of housing elements are contained in California Government Code sections 65580 through 65589.

This element addresses the following priority issues:
• Housing development
• Housing conservation
• Affirmatively furthering fair housing
• Housing element implementation

REGIONAL HOUSING NEEDS ASSESSMENT
The Regional Housing Needs Assessment (RHNA) is a process mandated by the State of California’s housing laws to determine existing and future housing needs for each city and unincorporated area. Once housing needs are quantified through the RHNA process, cities and counties are required to take certain land use planning actions to allow for the construction of new housing units to meet those needs, including updating of housing elements.

The RHNA process is foundational to this element and, as such, the following information is provided to promote clarity and a common understanding of both the RHNA process and the City’s associated obligations.

FREQUENTLY ASKED QUESTIONS
Is the RHNA process new?
No. The RHNA process began in 1969 and has occurred on regular “cycles” since then. From 1969 until the City’s incorporation on March 24, 1999, the County of Orange was responsible for RHNA compliance and land use planning in Laguna Woods. Beginning on March 24, 1999, those responsibilities transferred locally to the City.

How does the RHNA process determine housing needs?
The California Department of Housing and Community Development (HCD) is responsible for determining housing needs for each region’s “council of

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governments,” which for Laguna Woods is the Southern California Association of Governments (SCAG). The SCAG region encompasses six counties (Imperial, Los Angeles, Orange, Riverside, San Bernardino, and Ventura) and 191 cities.

HCD starts with demographic population information from the California Department of Finance and then applies a formula intended to increase housing supply and further other housing-related objectives established by the California State Legislature (see California Government Code Section 65584).

After receiving HCD’s housing needs determination, SCAG allocates HCD’s determination between individual cities and unincorporated areas. For the current 6th Cycle RHNA process (10/2021 - 10/2029 planning period), SCAG’s allocation methodology considered factors including, but not limited to, anticipated household growth, job and transit accessibility, and social equity (the distribution of housing by income categories).

Table H-1 summarizes the City’s current housing needs allocation.

Table H-1: 6th Cycle RHNA Housing Needs Allocation
Income Level Number of Units
Very-low income 127
Low income 136
Moderate income 192
Above-moderate income 542
Total 997
What does the RHNA process require of the City?
The City is required to zone sufficient land to allow for the construction of new housing units to meet its housing needs allocation. Such land must be “suitable for residential development,” which state law generally defines as including vacant land, residential land upon which additional housing units could be constructed, and nonresidential land that could be redeveloped to include new housing units (California Government Code Section 65583.2(a)). Such zoning must be “by right,” which means that the City is required to allow new

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housing construction without requiring conditional use permits or other discretionary approvals that would constitute a “project” under the California Environmental Quality Act (CEQA).

How does the City’s General Plan Housing Element relate to the RHNA process? State law requires that all cities update their general plan housing elements on either a five- or eight-year cycle (California Government Code Section 65588).

The City is on an eight-year cycle with its most recent update due on October 15, 2021. Prior to adopting an updated General Plan Housing Element, the City is required to demonstrate to HCD that the update adequately plans for the City’s housing needs allocation and otherwise complies with applicable state law (California Government Code sections 65583 and 65585).

Does the City have the ability to zone private property? Yes. State law requires the City to designate “the proposed general distribution and general location and extent of the uses of the land” within city limits, including both “public and private uses of land” (California Government Code Section 65302(a)). All public and private property in Laguna Woods, with the exception of public roads, is presently zoned and has been since the community was first constructed.

Does the RHNA process require the City to construct housing? No. State law is explicit that the City is not required to “expend local revenues for the construction of housing, housing subsidies, or land acquisition” (California Government Code Section 65589(a)(1)).

Does the RHNA process require private property owners to construct housing? No. While state law requires zoning sufficient to accommodate the City’s housing needs allocation, it does not require the use of that property to be limited to the construction of new housing units nor does it require property owners to construct housing or discontinue any existing non-housing uses. If a property owner does not wish to construct housing, zoning that allows such construction only presents an option for the future.

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Who makes the decision to construct housing?
Housing construction requires interested property owners and interested developers. No party is obligated to construct housing or discontinue any existing non-housing uses, regardless of how property is zoned.

Does the RHNA process allow the City to permit only senior housing? No. State law specifies that the RHNA process is intended to address the “housing need of persons at all income levels” with goals including “increasing the housing supply and the mix of housing types, tenure, and affordability” (California Government Code Section 65584). While property owners may choose to construct age-restricted housing, state law does not allow the City to place such a restriction on properties for the purpose of accommodating the City’s housing needs allocation.

Does the City receive credit for existing affordable housing units? No. The RHNA process is focused on future housing needs. For the 6th Cycle RHNA process, credit was only provided for housing units approved, permitted, or built on or after June 30, 2021.

AFFIRMATIVELY FURTHERING FAIR HOUSING
California Assembly Bill 686 (2018) chaptered into law an obligation for cities and other public agencies to “administer […] programs and activities relating to housing and community development in a manner to affirmatively further fair housing, and take no action that is materially inconsistent with its obligation to affirmatively further fair housing.” California Government Code Section 8899.50(a)(1) defines “affirmatively furthering fair housing” as “taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics. Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity, replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining

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compliance with civil rights and fair housing laws. The duty to affirmatively further fair housing extends to all of a public agency’s activities and programs relating to housing and community development.”

GOALS, POLICY OBJECTIVES, AND PROGRAMS
This element is organized to be consistent with the other elements of the Laguna Woods General Plan. Goals and policy objectives provide declarative statements that set forth the City’s approach to each of the priority issues.

Goals: General statements of desired outcomes.

Policy Objectives: Specific commitments to support decisions and actions consistent with a stated goal. Policy objectives provide guidance to the City Council, City advisory committees, and City staff when reviewing development applications and making other decisions that affect growth, conservation, and development.

As required by California Government Code Section 65583(c), this element also identifies programs that the City is undertaking or intends to undertake to implement the policy objectives and achieve the goals and policy objectives of the housing element during the planning period (10/2021 - 10/2029).

Priority Issue 1. HOUSING DEVELOPMENT.

Goal H-1. Enable the development of housing necessary to accommodate current and projected housing needs, including for lower-income households and other special needs populations.

Policy Objective H-1.1. Make sites available to accommodate current and projected housing needs for groups at all income levels, in accordance with California Government Code Section 65583(c)(1).

Program H-1.1.1. Rezone the 17 potential housing sites identified in the Housing Sites Inventory and Analysis (Exhibit C) to accommodate the City’s housing needs allocation (Table H-1).

Primary Responsibility: Planning & Environmental Services Department

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Anticipated Timeline: Calendar Year 2022
Anticipated Funding: California Senate Bill 2 (2017) Planning Grant Quantified Objectives: See Table H in Exhibit C
Note: The rezoning process will include the creation of four new overlay zoning districts and the adoption of minimum density and development standards for each. Specific commitments in the rezoning process include, but are not limited to, (1) complying with applicable provisions of California Government Code Section 65583.2 (h), (i), et al., including accommodating at least 50% of the lower-income housing needs allocation on sites designated for residential use only (for non-mixed use projects) and by requiring residential use to occupy 50% of the total floor area of mixed-use projects, (2) permitting housing projects by right, as required by state law, (3) permitting owner-occupied and rental multifamily uses by right for housing projects in which 20% or more of the housing units are affordable for lower-income households, (4) establishing densities for potential housing sites as specified in Table H in Exhibit C, and (5) allowing the development of housing projects as standalone uses on each potential housing site.

Policy Objective H-1.2. Assist in the development of adequate housing to meet the needs of extremely low, very low, low-, and moderate-income households.

Program H-1.2.1. Continue to maintain website information regarding fees, exactions, and affordability requirements imposed by the City that are applicable to housing development projects, in accordance with California Government Code Section 65940.1.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Ongoing
Anticipated Funding: General Fund
Quantified Objectives: Conforming Website Information
Program H-1.2.2. Prepare and maintain a webpage with information related to the 17 potential housing sites identified in the Housing Sites Inventory and Analysis (Exhibit C), including a Geographic Information System (GIS) map layer with geospatial information.

Primary Responsibility: Planning & Environmental Services Department

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Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Conforming Webpage and GIS Map Layer Program H-1.2.3. Conduct a market study and then amend the existing inclusionary housing ordinance to modify the minimum percentages of new housing units that must be deed-restricted for extremely low, very low, and low-income households, as feasible and advantageous to promote the development of affordable housing.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Market Study and Conforming Ordinance (if applicable) that promotes the development of
affordable housing
Note: In accordance with HCD’s “Housing Element Site Inventory Guidebook Government Code Section 65583.2” memorandum dated June 10, 2020, amendment of the ordinance will follow consultation with both for-profit and nonprofit developers to determine an appropriate mix of incomes that make development feasible in Laguna Woods. The City will also consult with housing advocates. When applied to rental housing, the ordinance will include options for the developer to meet the inclusionary requirements other than exclusively requiring building affordable units on site.

Program H-1.2.4. Adopt an ordinance creating an expedited and feereduced lot consolidation process for consolidations involving any one or more of the adjacent potential housing sites identified in the Housing Sites Inventory and Analysis (Exhibit C) for the purpose of incentivizing or making more financially feasible housing projects in which at least 5% of housing units are affordable for extremely low income households; at least 10% of housing units are affordable for very low or low-income households; or, at least 50% of housing units are affordable for moderate-income households. To be eligible, the affordable housing units shall be subject to an affordability covenant for at least 55 years.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022

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Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Note: While the consolidation of potential housing sites is not assumed or relied upon in the implementation of this Housing Element, this program is intended to incentivize and make more financially feasible housing projects.

Program H-1.2.5. Adopt an ordinance waiving or reducing City building permit fees for housing projects in which at least 5% of housing units are affordable for extremely low income households; at least 10% of housing units are affordable for very low or low-income households; or, at least 50% of housing units are affordable for moderate-income households. To be eligible, the affordable housing units shall be subject to an affordability covenant for at least 55 years.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance; waiver or reduction of City building permit fees for all eligible housing projects
when such eligibility is known to City
Program H-1.2.6. Amend various, existing housing-related provisions of the Laguna Woods Municipal Code to promote regulatory clarity. • Section 13.23.030(a)(2)c. Delete “private living space.” Note: The language identified for deletion is duplicative within Laguna Woods Municipal Code Chapter 13.23 and is not intended to constrain the development of emergency shelters in a manner that would conflict with Assembly Bill 139 (2019).
• Section TBD. Explicitly identify that low barrier navigation centers are permitted by right in zoning districts where multifamily and mixed uses are permitted, including nonresidential zoning districts permitting multifamily uses pursuant to California Government Code Section 65660.

Note: The City is required to comply with California Government Code Section 65660 irrespective of whether explicit language is adopted as part of the Laguna Woods Municipal Code.

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• Section TBD. Explicitly identify that zoning is consistent with the Employee Housing Act (California Health and Safety Code Section 17000 et seq.), specifically sections 17021.5 and 17021.6.

Note: The City is required to comply with the Employee Housing Act irrespective of whether explicit language is adopted as part of the Laguna Woods Municipal Code.
• Section 13.15.016(5). Explicitly identify that the required finding for applications for reasonable accommodations to not “result in a direct threat to the health and safety of other individuals or substantial physical damage to the property of others” is to be interpreted consistent with 42 U.S.C. § 3604(f)(9).

Note: The City is required to comply with 42 U.S.C. § 3604(f)(9) irrespective of whether explicit language is adopted as part of the Laguna Woods Municipal Code.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Program H-1.2.7. Formalize written procedures for the application and processing of housing projects eligible for streamlined, ministerial approval pursuant to California Government Code Section 65913.4.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Conforming Policy
Note: The City is required to comply with California Government Code Section 65913.4 irrespective of whether procedures are formalized in writing.

Program H-1.2.8. Investigate potential incentives for the development of housing projects with features that exceed the minimum requirements set forth in the California Building Energy Efficiency Standards. If feasible and economical, adopt such incentives.

Primary Responsibility: Planning & Environmental Services Department

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Anticipated Timeline: Within Six Months of Each Triennial California Building Standards Code Effective Date for Investigation
Anticipated Funding: General Fund
Quantified Objectives: Report Regarding Investigation;
Adopted Incentives (if applicable) that result in the
development of housing projects with features that
exceed the minimum requirements set forth in the
California Building Energy Efficiency Standards for
15% or more of housing projects over the 10/2021 -
10/2029 planning period
Policy Objective H-1.3. Provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities.

Program H-1.3.1. Continue to consider transitional housing a residential use of property, subject only to those restrictions that apply to other residential dwellings of the same type in the same zoning district.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Ongoing
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Program H-1.3.2. Continue to consider supportive housing a residential use of property, subject only to those restrictions that apply to other residential dwellings of the same type in the same zoning district.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Ongoing
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Program H-1.3.3. Continue to permit supportive housing by right in all zoning districts where multifamily and mixed uses are permitted.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Ongoing

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Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Program H-1.3.4. Amend various, existing housing-related provisions of the Laguna Woods Municipal Code to conform to applicable law. • Section 13.26.070. Remove the conditional use permit requirement for community care facilities serving seven to 12 persons located in areas where residential uses are permitted.
• Section 13.06.010(d)(395). Revise the zoning definition of “family” to address inconsistencies with state law related to the occupants of community care facilities.
• Sections 13.15.015 and 13.15.016. Remove the public noticing requirements for applications for reasonable accommodations.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Policy Objective H-1.4. Incentivize and promote the creation of accessory dwelling units that can be offered at affordable rent for very low, low-, or moderate-income households.

Note: While the creation of accessory dwelling units is not assumed or relied upon in the implementation of this Housing Element, this policy objective and programs H-1.4.1 through H-1.4.3 are intended to comply with state law and encourage the creation of accessory dwelling units when such interest exists.

Program H-1.4.1. Continue to maintain an ordinance that conforms to the provisions of California Government Code Section 65852.2 related to accessory dwelling units and junior accessory dwelling units, including amending the ordinance as necessary.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Ongoing
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance

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Program H-1.4.2. Prepare and maintain a webpage with information related to Laguna Woods Municipal Code requirements, processing procedures, and incentives pertaining to the development of accessory dwelling units and junior accessory dwelling units. Prepare and maintain a flyer with related information.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2023
Anticipated Funding: General Fund
Quantified Objectives: Conforming Webpage and Flyer
Program H-1.4.3. Designate and maintain a “specialist” to assist with the processing and approval of applications to develop accessory dwelling units and junior accessory dwelling units.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Designated Specialist
Policy Objective H-1.5. Make sites available to accommodate emergency housing needs for homeless persons and families, in accordance with California Government Code Section 65583(a)(7).

Program H-1.5.1. Continue to maintain an ordinance that conforms to the provisions of California Government Code Section 65583 related to emergency shelters, including amending the ordinance as necessary.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Ongoing
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance
Priority Issue 2. HOUSING CONSERVATION.

Goal H-2. Support the conservation of housing necessary to accommodate current and projected housing needs, including for lower-income households

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and other special needs populations.

Policy Objective H-2.1. Conserve and improve the condition of the existing affordable housing stock.

Program H-2.1.1. Prepare and maintain a webpage with information on home improvement-related financial assistance opportunities available to extremely low, very low, and low-income households. Train City staff to make referrals using the webpage.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2023
Anticipated Funding: General Fund
Quantified Objectives: Conforming Webpage and Evidence of Training Program H-2.1.2. Investigate potential incentives for property owners to extend existing affordability covenants beyond the planned expiration date. If feasible and economical, adopt such incentives.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2024 for Investigation Anticipated Funding: General Fund
Quantified Objectives: Report Regarding Investigation;
Adopted Incentives (if applicable) that result in
affordability covenants being extended beyond
the planned expiration date for 25% or more of
subject housing units over the 10/2021 - 10/2029
planning period
Policy Objective H-2.2. Promote accessible and accommodating housing options for persons with special needs.

Program H-2.2.1. Prepare and maintain a webpage with information on home improvement-related financial assistance opportunities available to persons with special needs. Train City staff to make referrals using the webpage.

Primary Responsibility: Planning & Environmental Services Department

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Anticipated Timeline: Calendar Year 2023
Anticipated Funding: General Fund
Quantified Objectives: Conforming Webpage and Evidence of Training Program H-2.2.2. Adopt an ordinance waiving or reducing City building permit fees for improvements to the home of a person at least 60 years of age with a qualifying disability that are made to accommodate that disability, as provided for by California Health and Safety Code Section 17951.7. Consider including provisions allowing for similar building permit fee waivers or reductions for improvements to the home of a person with a qualifying disability that are made to accommodate that disability, regardless of age. Prepare and maintain a flyer with related information.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2022
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance and Flyer; waiver or reduction of City building permit fees for all eligible improvements when such eligibility is known to City
Program H-2.2.3. Provide opportunities for reimbursements, grants, or other forms of financial assistance to support home improvements that increase accessibility or functionality for persons with special needs.

Primary Responsibility: Engineering & Infrastructure Services Department Anticipated Timeline: Calendar Year 2022 (as funding permits) Anticipated Funding: State Permanent Local Housing Allocation monies Quantified Objectives: Financial Assistance Opportunities; provision of financial assistance benefiting four or more housing
units per 12-month period
Policy Objective H-2.3. Promote housing conservation and revitalization.

Program H-2.3.1. Formalize a proactive code enforcement program that focuses on housing-related rehabilitation needs, results in repairs, and seeks to mitigate potential cost, displacement, and relocation impacts on residents.

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Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2025
Anticipated Funding: General Fund
Quantified Objectives: Conforming Code Enforcement Policies; resolve 25% or more proactive code enforcement cases related
to housing-related rehabilitation needs within 12
months of initiation
Priority Issue 3. AFFIRMATIVELY FURTHERING FAIR HOUSING.

Goal H-3. Administer housing and community development programs and activities in a manner to affirmatively further fair housing for all persons.

Policy Objective H-3.1. Enhance access to housing.

Program H-3.1.1. Improve pedestrian accessibility on sidewalks, curb ramps, crosswalks, and other public property connecting housing with transit stops, public buildings, businesses, and educational institutions.

Prioritize improvements based on factors including:
• The California Office of Environmental Health Hazard Assessment’s California Communities Environmental Health Screening Tool (“CalEnviroScreen") scores for individual census tracts, with an emphasis on undertaking improvements in and around Census Tract 626.47 due to its comparatively higher CalEnviroScreen score, as feasible and economical; and
• Education domain scores from the California Tax Credit Allocation Committee (“TCAC”)/HCD Opportunity Map, with an emphasis on undertaking improvements in and around Census Tract 626.22 due to its comparatively lower scores, as feasible and economical.

Primary Responsibility: Engineering & Infrastructure Services Department Anticipated Timeline: Ongoing (as funding permits)
Anticipated Funding: Community Development Block Grants (CDBG) Quantified Objectives: Ongoing Effort; expend 15% or more of monies allocated to pedestrian accessibility improvements
in and around census tracts falling within the
highest 50% of CalEnviroScreen scores assigned to

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census tracts within Laguna Woods and within the
lowest 50% of education domain scores from the
TCAC/HCD Opportunity Map assigned to census
tracts within Laguna Woods
Note: “Monies allocated to pedestrian accessibility improvements” does not include the proceeds of disaster relief or recovery awards; grant awards for which eligibility or competitiveness considerations resulted in applications or the acceptance of monies for work not wholly consistent with this program; restricted donations; monies allocated to address emergencies or other timesensitive matters of public health, safety or welfare; or, similar monies.

Program H-3.1.2. Pursue partnerships and seek funding to provide Laguna Woods-based housing mobility counseling services. If feasible and economical, implement such services.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Biennial Process to Identify Interested and Qualified Service Providers; Beginning in Calendar Year 2023
Anticipated Funding: General Fund
Quantified Objectives: Service Provider Identification Processes; Implemented Services (if applicable) that benefit
four or more households per 12-month period
Note: The services called for in this program are intended to reach a broad audience. Strategies for doing so may include utilizing a variety of methods; marketing services in a broad, proactive, accessible, and multilingual manner, including targeting specific areas and needs; providing remote participation opportunities for ease of access for the general public, including persons with disabilities; and, consulting with relevant organizations. Translation services and reasonable accommodations for persons with disabilities will be provided in accordance with applicable law and City policy.

Program H-3.1.3. Adopt an ordinance waiving or reducing City building permit fees, or providing other incentives, for housing projects that prepare and implement an affirmative marketing plan designed to attract renters or buyers of diverse demographics, including persons of any race, color, religion, sex, handicap, familial status, or national origin.

Prioritize incentives based on factors including racial concentrations from U.S. Census Bureau data products, with an emphasis on avoiding

PROPOSED
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HOUSING ELEMENT
March 2023
Page H-18 of H-21
the creation of geographically discernable patterns of segregation or racially concentrated areas of poverty.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2023
Anticipated Funding: General Fund
Quantified Objectives: Conforming Ordinance; preparation and implementation of affirmative marketing plans by
50% or more of housing projects over the 10/2021 -
10/2029 planning period
Policy Objective H-3.2. Protect existing residents from displacement.

Program H-3.2.1. Prepare and maintain a webpage with information on housing mediation, foreclosure assistance, and multilingual tenant legal counseling services. Train City staff to make referrals using the webpage.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Calendar Year 2023
Anticipated Funding: General Fund
Quantified Objectives: Conforming Webpage and Evidence of Training; referral of all service-interested residents when such
service-interest is known to City
Program H-3.2.2. Pursue partnerships and seek funding to provide Laguna Woods-based housing mediation, foreclosure assistance, and multilingual tenant legal counseling services. If feasible and economical, implement such services.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Biennial Process to Identify Interested and Qualified Service Providers; Beginning in Calendar Year 2023
Anticipated Funding: General Fund
Quantified Objectives: Service Provider Identification Processes; Implemented Services (if applicable) that benefit
four or more households per 12-month period
Note: The services called for in this program are intended to reach a broad audience. Strategies for doing so may include utilizing a variety of methods;

PROPOSED
City of Laguna Woods General Plan

HOUSING ELEMENT
March 2023
Page H-19 of H-21
marketing services in a broad, proactive, accessible, and multilingual manner, including targeting specific areas and needs; providing remote participation opportunities for ease of access for the general public, including persons with disabilities; and, consulting with relevant organizations. Translation services and reasonable accommodations for persons with disabilities will be provided in accordance with applicable law and City policy.

Program H-3.2.3. Investigate potential hazard mitigation measures that would reduce or eliminate the long-term risk of residential displacement as a result of future disasters. If feasible and economical, implement such hazard mitigation measures. Prioritize improvements based on factors including economic domain scores from the TCAC/HCD Opportunity Map for individual census tracts, with an emphasis on undertaking improvements in and around census tracts 626.22 and 626.48 due to their comparatively lower scores, as feasible and economical.

Primary Responsibility: Public Safety Services Department Anticipated Timeline: Calendar Year 2024 for Investigation Anticipated Funding: General Fund
Quantified Objectives: Report Regarding Investigation;
Implemented Measures (if applicable); expend 15%
or more of monies allocated to hazard mitigation
measures in and around census tracts falling within
the lowest 50% of economic domain scores from
the TCAC/HCD Opportunity Map assigned to
census tracts within Laguna Woods
Note: The investigation called for in this program is a necessary precursor to the potential identification of implementable measures and associated timelines.

The report regarding investigation will provide greater specificity including, as applicable, clear commitments and milestones, and measurable outcomes.

Note: “Monies allocated to hazard mitigation measures” does not include the proceeds of disaster relief or recovery awards; grant awards for which eligibility or competitiveness considerations resulted in applications or the acceptance of monies for work not wholly consistent with this program; restricted donations; monies allocated to address emergencies or other time-sensitive matters of public health, safety or welfare; or, similar monies.

Note: Programs H-1.2.3 (pertaining to inclusionary housing), H-2.2.2 (pertaining to fee waivers or reductions for disability-related improvements), and H-2.2.3

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City of Laguna Woods General Plan

HOUSING ELEMENT
March 2023
Page H-20 of H-21
(pertaining to financial assistance for home accessibility improvements) relate to affirmatively furthering fair housing by promoting housing supply, choices, and affordability, but are included under other priority issues in this element due to the manner in which this element is structured. Similarly, Program H-2.1.2 (pertaining to potential incentives for extended affordability covenants) relates to affirmatively furthering fair housing by protecting existing residents from displacement and Program H-2.3.1 (pertaining to proactive code enforcement) relates to affirmatively furthering fair housing by using placebased strategies to encourage community conservation and revitalization.

Priority Issue 4. HOUSING ELEMENT IMPLEMENTATION.

Goal H-4. Provide for analysis related to housing element implementation.

Policy Objective H-4.1. Conduct annual monitoring of the housing element.

Program H-4.1.1. Host an annual public forum to:
• Provide public education related to the purpose and scope of the housing element, as well as progress in its implementation; and • Solicit public input on the implementation of the housing element, existing and projected housing needs for all economic segments, and resources and constraints relevant to meeting housing needs.

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Annually; Beginning in Calendar Year 2023 Anticipated Funding: General Fund
Quantified Objectives: Public Forums
Program H-4.1.2. Prepare and submit an annual report to the City Council, California Governor’s Office of Planning and Research, and HCD with:
• The information required by California Government Code Section 65400(a)(2), in the form and manner specified; and
• A statement regarding the general plan’s internal consistency and, if necessary, the identification of corrective actions that will be taken to resolve any internal inconsistency.

Primary Responsibility: Planning & Environmental Services Department

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City of Laguna Woods General Plan

HOUSING ELEMENT
March 2023
Page H-21 of H-21
Anticipated Timeline: Annually; Prior to April 1
Anticipated Funding: General Fund
Quantified Objectives: Conforming Reports and Public Meetings Note: Pursuant to California Government Code Section 65400(a)(2)(B)(ii), the annual report information required by California Government Code Section 65400(a)(2) shall be considered at an annual public meeting before the City Council where members of the public are allowed to provide oral testimony and written comments. This program requires certain other information to be included in the annual report, which will also then be subject to consideration at the annual public meeting.

Policy Objective H-4.2. Coordinate implementation of this housing element with the water and sewer agency.

Program H-4.2.1. Deliver each adopted housing element (including amendments thereto) to the El Toro Water District, in accordance with California Government Code Section 65589.7(a).

Primary Responsibility: Planning & Environmental Services Department Anticipated Timeline: Immediately Following Each Adoption Anticipated Funding: General Fund
Quantified Objectives: Conforming Deliveries
Note: California Government Code Section 65589.7(a) generally requires the El Toro Water District to grant a priority for the provision of water and sewer services to housing projects that include housing units affordable to lowerincome households.

EXHIBITS
The following exhibits are attached hereto and incorporated by reference:
• Exhibit A – Housing Needs Assessment
• Exhibit B – Constraints Analysis
• Exhibit C – Housing Sites Inventory and Analysis
• Exhibit D – Housing Element Performance Assessment
• Exhibit E – Public Participation Efforts

PROPOSED
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PROPOSED
March 2023

EXHIBIT A

HOUSING NEEDS ASSESSMENT

CITY OF LAGUNA WOODS

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PROPOSED
March 2023

HOUSING NEEDS ASSESSMENT

CITY OF LAGUNA WOODS
Submitted to:

City of Laguna Woods
24264 El Toro Road
Laguna Woods, California 92637
Prepared by:

LSA
20 Executive Park, Suite 200
Irvine, California 92614
(949) 553-0666
Project No. LWD2101

PROPOSED
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PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - i

TABLE OF CONTENTS
TABLE OF CONTENTS ............................................................................................................................... i LIST OF ABBREVIATIONS AND ACRONYMS............................................................................................ iii

1.0 HOUSING NEEDS ASSESSMENT ............................................................................ 1

1.1 Demographic Profile ............................................................................................................ 1

1.1.1 Population Growth and Trends ............................................................................................. 1

1.1.2 Age Characteristics................................................................................................................ 2

1.1.3 Race and Ethnicity ................................................................................................................. 3

1.1.4 Employment .......................................................................................................................... 3

1.2 Household Profile................................................................................................................. 5

1.2.1 Household Type..................................................................................................................... 5

1.2.2 Household Income................................................................................................................. 6

1.2.3 Special-Needs Populations .................................................................................................... 9

1.3 Housing Stock Characteristics............................................................................................ 17

1.3.1 Housing Growth...................................................................................................................17

1.3.2 Housing Type and Tenure....................................................................................................17

1.3.3 Vacancy Rate .......................................................................................................................18

1.3.4 Housing Age and Condition ................................................................................................. 19

1.3.5 Housing Costs and Affordability ..........................................................................................20

1.3.6 Assisted Housing at Risk of Conversion ...............................................................................23

1.3.7 Existing Housing Needs........................................................................................................24

1.4 Affirmatively Furthering Fair Housing................................................................................ 27

1.4.1 Fair Housing Issues ..............................................................................................................28

1.5 Regional Housing Needs..................................................................................................... 43

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - ii

FIGURES AND TABLES
FIGURE
Figure 1: Median Household Income (2018) ..........................................................................................7 TABLES
Table A: Regional Population Growth Trends.........................................................................................1 Table B: Age Distribution ........................................................................................................................2 Table C: Racial and Ethnic Composition (2010 and 2018) ......................................................................3 Table D: Occupation of Residents (2018) ...............................................................................................4 Table E: Household Characteristics (2010 and 2018) .............................................................................6 Table F: HCD Income Categories.............................................................................................................7 Table G: Household Income Levels (2010–2018)....................................................................................8 Table H: Household Income Levels by Tenure (2017) ............................................................................8 Table I: Poverty by Household Type .......................................................................................................8 Table J: Special Needs Groups ................................................................................................................9 Table K: Disability Status.......................................................................................................................12 Table L: Local Facilities for Persons Experiencing Homelessness.........................................................16 Table M: Regional Housing Growth Trends..........................................................................................17 Table N: Housing Units by Type (2000–2020).......................................................................................18 Table O: Housing Tenure (2010 and 2018) ...........................................................................................18 Table P: Age of Housing Stock (2019) ...................................................................................................19 Table Q: Median and Average Market Rents by Number of Bedrooms (April 2021)...........................20 Table R: Annual Median Home Prices (2020–2021) .............................................................................21 Table S: Estimated Affordable Housing Price by Income and Household Size (2021)..........................22 Table T: Inventory of Subsidized Rental Housing for Lower Income Households................................24 Table U: Cost Burden by Tenure ...........................................................................................................24 Table V: Cost Burden by Income Level, Tenure, and Household Type .................................................25 Table W: Overcrowding by Tenure .......................................................................................................26 Table X: Domains and Lists of Indicators for Opportunity Maps..........................................................27 Table Y: Racial/Ethnic Concentrations and Income Levels...................................................................30 Table Z: White Median Household Income and Population................................................................. 31 Table AA: Opportunity Map Scores and Categorization (2020)............................................................32 Table AB: Low and Moderate TCAC Resource Level Census Tracts in Laguna Woods (2020)..............32 Table AC: CIP Projects in Laguna Woods ..............................................................................................33 Table AD: School Districts Serving Laguna Woods................................................................................35 Table AE: CalEnviroScreen Scores by Census Tract (2020) ...................................................................38 Table AF: Alignment of AFFH Programs with HCD Guidance................................................................40 Table AG: Contributing Factors for AFFH Programs Matrix..................................................................42 Table AH: Regional Housing Needs Assessment, 2021–2029...............................................................44

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - iii

LIST OF ABBREVIATIONS AND ACRONYMS
AB Assembly Bill
ACS American Community Survey
ADA Americans with Disabilities Act
AFFH Affirmatively Furthering Fair Housing
AMI area median income
CalEnviroScreen California Communities Environmental Health Screening Tool CBC California Building Code
CC Community Commercial
CIP Capital Improvement Program
City City of Laguna Woods
CoC Continuum of Care
County County of Orange
CUP Conditional Use Permit
DDS California Department of Developmental Services
FHA Fair Housing Act
FHCOC Fair Housing Council of Orange County
FHEO Fair Housing Enforcement and Outreach
HCD Housing and Community Development Department of the State of California HUD United States Department of Housing and Urban Development LIHTC Low Income Housing Tax Credit
OEHHA Office of Environmental Health Hazard Assessment
R/ECAP racially/ethnically concentrated area of poverty RC Residential Community
RCAA Racially Concentrated Areas of Affluence
RHNA Regional Housing Needs Assessment
RMF Residential Multifamily
SCAG Southern California Association of Governments
TCAC California Tax Credit Allocation Committee

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - iv
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PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 1

1.0 HOUSING NEEDS ASSESSMENT
State Housing Element law requires local governments to adequately plan to meet their existing and projected housing needs, including their share of the Regional Housing Needs Assessment (RHNA) allocation. Specifically, Government Code Section 65583(a) requires an assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. This section of the Housing Element examines the characteristics of Laguna Woods’ population and housing stock as a means of better understanding the nature and extent of unmet housing needs. The Housing Needs Assessment is comprised of the following components: (1) Demographic Profile; (2) Household Profile; (3) Housing Stock Characteristics; (4) Affirmatively Furthering Fair Housing; and (5) Regional Housing Needs.

1.1 DEMOGRAPHIC PROFILE
Demographic changes such as population growth or changes in age can affect the type and amount of housing needed in a community. This section addresses the population, age, and race and ethnicity of Laguna Woods residents.

1.1.1 Population Growth and Trends
Table A presents population growth trends in Laguna Woods from 1990 to 2020 and compares this growth to neighboring jurisdictions and Orange County. As shown, Orange County experienced the highest level of growth during the 1990s (18 percent). Neighboring jurisdictions experienced their highest level of growth during the 2000 to 2010 period (48 percent in Irvine and almost 32 percent in Lake Forest). However, during the 2000 to 2010 period, Laguna Woods experienced a decrease in its population. As will be discussed in further detail below, Laguna Woods residents are significantly older, on average, than the rest of Orange County. This means that Laguna Woods’ population growth due to natural increase (births minus deaths) is slower than other parts of Orange County.

Table A: Regional Population Growth Trends
Jurisdiction 1990 2000 2010 2020 Percent Change
1990–2000 2000–2010 2010–2020
Laguna Woods N/A 17,794 16,273 16,243 N/A -8.55% -0.18% Aliso Viejo N/A N/A 47,816 50,044 N/A N/A 4.66%
Irvine 110,330 143,072 212,375 281,707 29.68% 48.44% 32.65% Laguna Beach 23,170 23,727 22,723 22,343 2.40% -4.23% -1.67% Laguna Hills N/A 29,891 30,270 31,508 N/A 1.27% 4.09%
Lake Forest N/A 58,707 77,395 84,711 N/A 31.83% 9.45%
Orange County 2,410,668 2,846,289 3,010,232 3,194,332 18.07% 5.76% 6.12% Sources: (1) California Department of Finance, Demographic Research Unit, Report E-5; (2) California Department of Finance, Demographic Research Unit, Report E-8 City/County/State Population and Housing Estimates;
(3) California Department of Finance, Demographic Research Unit, E-4 Revised Historical.

N/A = Not Applicable

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 2
Census data from 2000 to 2010 show that a reduction in the population growth rate for Orange County occurred during the decade. Countywide, population growth dropped to approximately 6 percent, while some local communities, such as Irvine and Lake Forest, experienced robust growth due to the development of new housing. Laguna Woods experienced a population decrease of approximately 9 percent during this period.

While most of the neighboring communities grew modestly between 2010 and 2020, the population of Laguna Woods in 2020 was estimated to be 16,243, approximately less than 1 percent lower than in 2010. The growth rate of Orange County as a whole was 6 percent, more than six times that of Laguna Woods. Of the surrounding communities shown, only Aliso Viejo had a growth rate that was close to that of Orange County. Laguna Woods saw a 0.18 percent population decrease from 2010 to 2020. However, this is much less of a decrease compared to the previous decade.

The Southern California Association of Governments (SCAG) projects that the population of Laguna Woods will grow to 16,500 by 2045. This represents a growth rate of approximately 1.6 percent over the next 25 years. It should be noted that SCAG’s growth projection does not reflect potential population growth due to Laguna Woods’ RHNA allocation, which is discussed in further detail in Section 1.5, Regional Housing Needs.

1.1.2 Age Characteristics
Table B shows the age distribution and median age of Laguna Woods’ population in 2010 and 2018 and compares this with Orange County as a whole. Table B indicates that seniors aged 65 and older were the largest population group in Laguna Woods in 2010 (80 percent) and 2018 (83 percent). The proportion of the population within the younger age groups (under 5 years, 5 to 17 years, and 18 to 24 years) decreased since 2010, while there was an increase in the older adult population. The proportion of seniors (ages 65 and older) increased from 80 percent to 83 percent. However, Laguna Woods’ median age decreased from 78 in 2010 to 75 in 2018.

Table B: Age Distribution
Age Group 2010 2018
Population Percent Population Percent Orange County Percent Under 5 years 33 0.2% 0 0.0% 6.0%
5-17 years 65 0.4% 10 0.1% 17.0%
18-24 years 49 0.3% 23 0.1% 9.5%
25-44 years 179 1.1% 100 0.6% 27.4%
45-64 years 2,982 18.3% 2,666 16.5% 26.6%
65+ years 12,987 79.7% 13,429 82.8% 13.9%
Total 16,295 100.0% 16,228 100.0% 100.0%
Median Age 78 75 38
Sources: (1) 2010 ACS 5-Year Estimates (Table S0101);
(2) 2018 ACS 5-Year Estimates (Table S0101).

Overall, the age distribution for Laguna Woods is skewed toward higher percentages of senior populations compared with Orange County as a whole. As shown in Table B, the percentage of the Laguna Woods’ population that is 65 years of age and older (83 percent) is substantially higher than that of Orange County (14 percent). Laguna Woods’ median age (75) is also substantially higher than

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 3
Orange County’s median age (38). This reflects the fact that a large percentage of Laguna Woods residents live in Laguna Woods Village, an age-restricted retirement community for residents who are 55 years of age and older that occupies a majority of Laguna Woods’ area. The proportion of children (ages 17 and under) and adults aged 18 to 64 are also notably lower in Laguna Woods compared to Orange County.

1.1.3 Race and Ethnicity
Historically, White residents have been the majority racial group within Laguna Woods. Table C displays the racial and ethnic composition of Laguna Woods’ population in 2010 and 2018 and compares this with the countywide distribution. While changes since 2010 have generally been slight, Laguna Woods is trending toward a more diverse population. In 2018, White residents made up 78 percent of Laguna Woods’ population, representing an 11 percent decrease since 2010. The proportion of White residents in Laguna Woods is also notably higher than that of Orange County as a whole (61 percent countywide).

Table C: Racial and Ethnic Composition (2010 and 2018)
Racial/Ethnic Group 2010 2018
Persons Percent Persons Percent Orange County Percent
White 14,499 89.0% 12,678 78.1% 61.7%
Asian/Pacific Islander 1357 8.3% 3,142 19.4% 20.4%
Black or African American 126 0.8% 73 0.4% 1.7%
American Indian 0 0.0% 8 0.0% 0.5%
Other Race 208 1.3% 172 1.1% 11.7%
Two or More Races 105 0.6% 155 1.0% 4.1%
Total 16,295 16,228
Hispanic 723 4.4% 821 5.1% 34.1%
Non-Hispanic 15,572 95.6% 15,407 94.9% 65.9%
Total 16,295 16,228
Sources: (1) 2010 ACS 5-year estimates (Tables C02003 and B03003); (2) 2018 ACS 5-year estimates (Tables C02003 and B03002).

While only representing 19 percent of the total population in 2018, the number of Asian/Pacific Islander residents has increased by 11 percent since 2010. Laguna Woods’ Asian/Pacific Islander population is now on par with Orange County (19 percent compared to 20 percent). Chinese is the predominant Asian ethnicity represented in Laguna Woods, making up approximately 9 percent of Laguna Woods’ total population. There are also large populations of Korean and Filipino residents within Laguna Woods.

The Hispanic population increased by approximately 1 percent from 2010 to 2018. The estimated proportion of Hispanic residents in 2018 was 5 percent, still markedly lower than Orange County, which has an estimated 34 percent Hispanic population.

1.1.4 Employment
An evaluation of the types of jobs held by community residents provides insight into potential earning power and the segment of the housing market into which they fall. Information on how a community’s

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 4
employment base is growing and changing can help identify potential housing demand changes in the future.

The State Employment Development Department estimates that 2,900 Laguna Woods residents (or approximately 18 percent of Laguna Woods’ population) were in the labor force in January 2021. This reflects the fact that Laguna Woods’ housing stock is predominantly age-restricted. Laguna Woods has seen a drastic increase in unemployment since March 2020 due to the onset of the COVID-19 pandemic. In January 2020, Laguna Woods’ unemployment rate was at 2.2 percent; however, it rose sharply in the spring and peaked at 11.6 percent in May 2020. As of January 2021, the unemployment rate within Laguna Woods was 5.6 percent. The unemployment rate of Orange County was at 2.9 percent in January 2020 and has seen a similar spike. As of January 2021, unemployment in Orange County as a whole was 7.4 percent. While the region’s economy appears to show signs of recovery, the long-term impacts of the COVID-19 pandemic on employment within Laguna Woods and Orange County remain unknown.

Table D presents the occupations of Laguna Woods residents, based on the 2014–2018 American Community Survey (ACS) estimates. The largest proportion of Laguna Woods residents are employed in educational services and health care and social assistance occupations at 22 percent, followed by finance and insurance and real estate, rental, and leasing occupations at 15.6 percent. Approximately 61 percent of employed residents in Laguna Woods commute less than 25 minutes to work, indicating that a majority of working residents hold jobs within Laguna Woods or in immediately adjacent communities.

Table D: Occupation of Residents (2018)
Occupation Population Percent
Agriculture, forestry, fishing and hunting, and mining 0 0.0% Construction 52 1.7%
Manufacturing 285 9.2%
Wholesale trade 123 4.0%
Retail trade 347 11.2%
Transportation and warehousing, and utilities 78 2.5%
Information 42 1.4%
Finance and insurance, and real estate and rental and leasing 484 15.6% Professional, scientific, and management, and administrative and waste management services
483 15.5%
Educational services, and health care and social assistance 695 22.4% Arts, entertainment, and recreation, and accommodation and food services 249 8.0% Other services, except public administration 188 6.0%
Public administration 83 2.7%
Total Civilians Employed 3,109 100.00%
Source: 2018 ACS 5-year estimates (Table S2405).

Laguna Woods itself has a limited employment base. As of 2019, the five largest employers in Laguna Woods were Laguna Woods Village, Professional Community Management of California, Stater Brothers, Rainbow Realty Corporation, and OCB Restaurant Company.

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 5
In 2019, the Orange County Business Council updated the results of its Workforce Housing Scorecard.

This report provides a comprehensive evaluation of the current and future state of Orange County’s housing supply and demand and its impact on the business community. Based on the following criteria, the scorecard rates each jurisdiction’s record over the 2016 to 2030 time period in addressing workforce housing needs:
• Total job growth
• Housing as a percent of total Orange County housing
• Jobs-to-housing ratio
• Change in housing density
Based on the above factors, Laguna Woods ranks 33rd of the 34 cities in Orange County. Rankings are weighted toward larger cities and cities experiencing new housing development (Irvine was ranked 1st); therefore, a ranking of 33rd is expected for Laguna Woods, as it is the 31st largest city within Orange County and has not experienced any new housing growth since the development of the San Sebastian Apartments in 2008. It should be noted that Laguna Woods ranked 26th in job growth, indicating a modest need for new housing within Laguna Woods.

1.2 HOUSEHOLD PROFILE
Household type and size, income levels, and the presence of special-needs populations all affect the type of housing needed by residents and are important indicators of where intervention and/or housing programs may be needed. Household income levels are indicators of housing affordability, just as the ratio of owners to renters may impact the stability of the housing market. This section details the various household characteristics affecting housing needs in Laguna Woods.

1.2.1 Household Type
A household is defined as the total number of persons living in a housing unit, whether related or unrelated. The Census Bureau definition of a “family” is a group of two people or more (one of whom is the householder) related by birth, marriage, or adoption and residing together; all such people (including related subfamily members) are considered as members of one family. A single person living alone is also a household. “Other” households are unrelated people residing in the same dwelling unit. Group quarters, such as dormitories or convalescent homes, are not considered households.

As shown in Table E, the 2014–2018 ACS estimates there are 11,156 households in Laguna Woods, with an average household size of 1.45 persons and an average family size of 2.07 persons. While the average household size in Laguna Woods saw a 2.8 percent increase from 2010, the average family size decreased by 2.4 percent. Laguna Woods’ average household and family size is lower compared to that of Orange County as a whole (3.02 and 3.51, respectively).

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 6
Table E: Household Characteristics (2010 and 2018)
Household & Family Type 2010 2018 Percent Change Number Percent Number Percent Total Population 16,295 100.0% 16,228 100.0% -0.4%
In Group Quarters 167 1.0% N/A N/A N/A
Total Households 11,470 100.0% 11,156 100.0% -2.7%
Family Households 3,733 32.5% 4,107 36.8% 10.0%
Married Couple Families 3,215 28.0% 3,645 32.7% 13.4%
Single Parent Households 29 0.3% 0 0.0% -100.0%
Non-family Households 7,737 67.5% 7,049 63.2% -8.9%
Householder Living Alone 7,272 63.4% 6,593 59.1% -9.3%
Householder 65+ (Alone) 6,343 55.3% 5,723 51.3% -9.8%
Average Household Size 1.41 1.45 2.8%
Average Family Size 2.12 2.07 -2.4%
Sources: (1) 2010 and 2018 ACS 5-year estimates (Table S1101); (2) 2010 Census (Table PCT38).

N/A = Not Applicable
Nonfamilies constitute the majority of households in Laguna Woods (63 percent). The proportion of single-parent households has also remained steady at approximately 4 percent of all households.

Family households constituted about 37 percent of all households in 2018, an increase of 10 percent since 2010. Approximately 90 percent of family households are married-couple households, and this has increased since 2010. The proportion of householders living alone also decreased between 2010 and 2018.

1.2.2 Household Income
Household income is one of the most important factors affecting housing opportunity and determining a household’s ability to balance housing costs with other basic necessities of life while avoiding housing problems such as cost burden and overcrowding.

1.2.2.1 Income Definitions
The State and federal governments classify household income into several groupings based upon the relationship to the county area median income (AMI), adjusted for household size. The Housing and Community Development Department of the State of California (HCD) utilizes the income groups presented in Table F. Federal housing programs utilize slightly different income groupings and definitions, with the highest income category generally ending at >95 percent AMI. For purposes of the Housing Element, the State HCD income definitions are used throughout, with the exception of data compiled by the United States Department of Housing and Urban Development (HUD), which is specifically noted.

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 7
Table F: HCD Income Categories
Income Category Percent Annual Median Income (AMI)
Extremely Low 0-30% AMI
Very Low 0-50% AMI
Low 51-80% AMI
Moderate 81-120% AMI
Above Moderate 120%+ AMI
Source: California Department of Housing and Community Development.

1.2.2.2 Income Characteristics
The 2014–2018 ACS estimated the median annual income of households in Laguna Woods to be $41,928. This is an increase of approximately 13 percent from 2010, when the median annual income was $36,818. Figure 1 illustrates the 2018 median household income for Laguna Woods and surrounding communities and compares them to the median income for Orange County. Of the jurisdictions included, Laguna Woods had a significantly lower median household income than the Orange County median of $85,398.

Figure 1: Median Household Income (2018)
Table G shows the number of Laguna Woods households living within the HCD income categories described above for 2010 and 2017. The number of households within the very low- and low-income categories has decreased overall since 2010. As of 2017, approximately 69 percent of Laguna Woods households fell within one of the lower income categories. The proportion of households with moderate or above-moderate incomes increased from 30.1 percent in 2010 to 31.1 percent in 2017. $0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Aliso Viejo Irvine Laguna
Beach
Laguna Hills Laguna
Woods
Lake Forest Orange
County
Median Household Income

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 8
Table G: Household Income Levels (2010–2018)
Income Level 2010 2017 2010–2017
Households Percent Households Percent Percent Change
Extremely Low Income (<30% AMI) 2,870 25.2% 2,880 25.6% 0.3% Very Low Income (31-50% AMI) 2,650 23.3% 2,455 21.8% -7.4% Low Income (51-80% AMI) 2,435 21.4% 2,415 21.5% -0.8%
Moderate/Above Moderate Income (>80% AMI) 3,420 30.1% 3,500 31.1% 2.3% Total Households 11,375 100.0% 11,250 100.0% -1.1%
Source: CHAS Data, 2010 and 2017.

AMI = Annual Median Income
Table H shows the income level of Laguna Woods households by tenure. A total of 76 percent of renter households were lower income (<80 percent AMI), compared to 67 percent of owner households. 31 percent of renter households were categorized as extremely low income (<30 percent AMI), and 26 percent were very low income households (31 to 50 percent AMI).

Table H: Household Income Levels by Tenure (2017)
Income Level Renter Owner
Households Percent Households Percent
Extremely Low Income (<30% AMI) 840 31.2% 2,040 23.8%
Very Low Income (31-50% AMI) 685 25.5% 1,770 20.7%
Low Income (51-80% AMI) 505 18.8% 1,910 22.3%
Moderate Income & Above (> 80% AMI) 660 24.5% 2,840 33.2% Total 2,690 100.0% 8,560 100.0%
Source: CHAS Data, 2017.

AMI = Annual Median Income

1.2.2.3 Households in Poverty
The federal government publishes national poverty thresholds that define the minimum income level necessary to obtain the necessities of life. Table I shows the number of households within Laguna Woods living in poverty by household type. A total of 242 households within Laguna Woods are living below the federal poverty threshold, representing approximately 6 percent of all households.

Approximately 1 percent of all households in Laguna Woods are female-headed households living below the poverty level. Of these female-headed households living below the poverty level, 9 of the households (or 0.2 percent of all households in Laguna Woods) have children under the age of 18.

Another significant group living in poverty are seniors. As shown in Table I, approximately 6 percent of all households in Laguna Woods are senior-headed households living below the poverty level.

Table I: Poverty by Household Type
Household Type Below Poverty Level
Number Percent
Family Households 242 6.1%
Female-Headed Households 36 0.9%
With Children 9 0.2%
Senior-Headed Households (65+) 230 5.8%
Source: 2019 ACS 5-year estimates.

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 9

1.2.3 Special-Needs Populations
State law recognizes that certain households have more difficulty in finding adequate and affordable housing due to special circumstances and may also have lower incomes as a result of these circumstances. Special-needs populations include seniors, persons with disabilities, female-headed households, large households, farmworkers, and the homeless. Table J summarizes the special-needs populations in Laguna Woods. Each of these population groups, as well as their housing needs, is described below.

Table J: Special Needs Groups
Special Needs Group Persons or Households Renter Owner Percent of Total Households with a Senior Member 9,701 -- -- 88.2%
Senior-headed Households 3,495 -- -- 26.3%
Seniors Living Alone 5,622 -- -- 42.3%
Single-Parent Households 0 -- -- 0.0%
Female Single-Parent Households 0 -- -- 0.0%
Large Households (5+ members) 13 0 13 0.3%
Agricultural Workers 0 -- -- 0.0%
Persons with Disabilities 4,364 -- -- 27.3%
Homeless 5 -- -- 0.04%
Sources: (1) 2019 ACS 5-year estimates;
(2) 2019 homelessness point-in-time counts processed by SCAG. -- = Data not available.

1.2.3.1 Large Households
Large households consist of five or more persons and are considered a special-needs group due to the limited availability of affordable and adequately sized housing. Large households often live in overcrowded conditions due to both the lack of large-enough units and insufficient income to afford available units of adequate size. In 2018, Laguna Woods had a total of 13 large households, representing 0.3 percent of total households in Laguna Woods. These large households consisted entirely of owner households (Table J). Laguna Woods has a small number of larger homes compared to many communities in the region, with only 100 housing units (0.9 percent of all occupied housing units) containing four or more bedrooms, according to the 2014–2018 ACS. This suggests that Laguna Woods does not have any unmet housing need for large households.

1.2.3.2 Senior Households
Approximately 83 percent of Laguna Woods residents are age 65 or older. This is an increase from 2010, when 80 percent of the population were seniors. Senior-headed households make up a significant proportion (26 percent) of all households in Laguna Woods. Additionally, 42 percent of all households in Laguna Woods are seniors living alone.

Seniors may have a number of special needs including, housing, transportation, health care, and other services. Approximately 30 percent of Laguna Woods’ senior population has one or more disability that may need to be taken into consideration when finding appropriate housing. Rising rents are a particular concern due to the fact that most seniors are on fixed incomes.

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 10
Laguna Woods is unique in that it predominantly comprises private communities that are agerestricted for adults 55 years and older. Of the housing units in Laguna Woods, the majority are located in the private gated community of Laguna Woods Village, with the remaining units in four separate communities. The various housing options, levels of amenities, and services provided at each of these communities are described below. There is a discrepancy of the total number of housing units located in Laguna Woods between City of Laguna Woods (City) records and the United States Census.

It should be noted that the City’s records, which reflect the numbers identified below, total 13,386, which is 988 more than what is identified by the United States Census (12,398 housing units). • Laguna Woods Village: Laguna Woods Village contains 12,736 owned condominium and cooperative units. Owners within Laguna Woods Village pay a homeowners’ association fee that is used to provide residents with public transportation, patrolled private security, clubhouses with special programs, and recreational activities. Also included within the Laguna Woods Village community are two golf courses for the private use of Laguna Woods Village residents. • Las Palmas: Las Palmas is a licensed residential care community with 184 rental units. Services include the dispensing of medication and assistance with bathing, dressing, and other activities of daily living determined by a care plan tailored to specifically meet the individual needs of the residents. Amenities include meal service, transportation, housekeeping, laundry services, and access to recreational facilities, including a putting green, shuffleboard court, pool, and spa.

Activity programs include regular trips to shopping centers and other destinations. • The Regency: The Regency is a licensed residential care community that consists of 192 rental units for seniors and offers both independent and assisted living on a month-to-month basis.

Services and amenities include daily meals, housekeeping, laundry services for bed and bath linens, scheduled transportation, group excursions, and social events. The Regency is the only residential community that, under unique circumstances, will accommodate individuals younger than 55 within its assisted living facility.
• San Sebastian: San Sebastian contains 134 rental units, including 17 affordable units for lowerincome residents. San Sebastian is also an age-restricted independent living apartment facility; therefore, all of the affordable housing units at San Sebastian are reserved for seniors. • Whispering Fountains: Whispering Fountains contains 140 rental units. Although age-restricted, the Fountains operates as an apartment community and does not provide assisted living services, special programs, or amenities.

Several resources for seniors exist in and near Laguna Woods and include the following:
• Age Well Senior Services: This nonprofit organization provides health and wellness programs, home delivery of meals, and nonemergency medical transit service to seniors in Laguna Woods.

The organization operates the Florence Sylvester Memorial Senior Center in neighboring Laguna Hills, where it provides congregate meals, social services case management, senior activities and classes, information, and referral services.

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 11
• Foundation of Laguna Woods Village: This nonprofit organization partners with the Laguna Woods Village Social Services Department to provide temporary emergency financial assistance with supermarket cash cards, prescription payments, bill payments for utility services, medical and dental, caregiver and respite care services, taxi vouchers for travel to health care providers in Orange County, and gas cards to qualifying residents of Laguna Woods Village. • Helping Hands Senior Foundation: This nonprofit organization provides social workers who can connect seniors with free or low-cost in-home health care, palliative care, adult day care, medical equipment, food assistance, and financial assistance resources, as well as provide support with navigating health insurance claims and payments.
• Laguna Woods Village Social Services Department: This private organization offers social workers who can help Laguna Woods Village residents with short-term counseling, crisis intervention, support groups, educational programs, long-term care planning, and resource referrals. • Orange County Housing Authority: This government agency is responsible for administering federally funded programs that provide monthly rental assistance to qualified tenants, including low-income seniors, in privately owned rental housing in Orange County. The largest such program is referred to as the Housing Choice Voucher Program. Participants who receive a Housing Voucher can use this rental assistance in a variety of rental dwellings and locations with almost any property owner who is willing to participate in the program.

Based on the available resources in the community, there is no unmet need for senior housing.

1.2.3.3 Single-Parent Households
Single-parent households typically have a special need for such services as childcare and health care, among others, and often live with only one income. According to the 2014–2018 ACS, Laguna Woods did not have any single-parent households with young children (under the age of 18) (Table J).

Therefore, Laguna Woods does not have any unmet housing need for single-parent households, including female-headed households.

1.2.3.4 Persons with Disabilities
Under the Americans with Disabilities Act (ADA), an individual with a disability is defined as a person who has a physical or mental impairment that substantially limits one or more major life activities, a person who has a history or record of such an impairment, or a person who is perceived by others as having such an impairment.1 Major life activities include, but are not limited to, caring for oneself, performing manual tasks, seeing, hearing, eating, sleeping, walking, standing, lifting, bending, speaking, breathing, learning, reading, concentrating, thinking, communicating, and working.2 1 United States Department of Justice. 2020. A Guide to Disability Rights Laws. February. Website:
https://www.ada.gov/cguide.htm#anchor62335 (accessed April 23, 2021). 2 United States Department of Labor. 2009. ADA Amendments Act of 2008 Frequently Asked Questions. January 1. Website: https://www.dol.gov/agencies/ofccp/faqs/americans-with-disabilities-actamendments#:~:text=Major%20life%20activities%20include%2C%20but,thinking%2C%20communicating %2C%20and%20working (accessed April 23, 2021).

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 12
Disabled persons often have special housing needs related to limited earning capacity, a lack of accessible and affordable housing, and higher health costs associated with a disability. In recognition of the fact that disabilities can affect a range of major life activities, the ACS questionnaire gathers data about six key disability types: hearing difficulty, vision difficulty, cognitive difficulty, ambulatory difficulty, self-care disability, and independent living difficulty. Table K shows the number of Laguna Woods residents with a disability as well as the number of Laguna Woods residents 65 years of age or older that have a disability. According to the 2014–2018 ACS, an estimated 27 percent of Laguna Woods residents (4,364 persons) have one or more disabilities. Approximately 30 percent of the senior population have one or more disabilities.

Table K: Disability Status
Disability Type Persons with
Disability
Percent of
Total
Persons with Disability,
Age 65+
Percent of
Total
With a hearing difficulty 1,844 11.5% 1,733 13.1%
With a vision difficulty 705 4.4% 658 5.0%
With a cognitive difficulty 1,058 6.6% 925 7.0%
With an ambulatory difficulty 2,651 16.6% 2,473 18.7%
With a self-care difficulty 1,180 7.4% 1,123 8.5%
With an independent living difficulty 1,774 11.1% 1,650 12.5% Total Persons with Disabilities 4,364 100.00% 3,972 100.00% Source: 2019 ACS 5-year estimates (Table S1810).

Disabled individuals have unique housing needs because they may be limited in mobility or in their ability to care for themselves. In addition, the earning power of disabled persons may be limited. Their housing need is also often compounded by design and location requirements, which can drive up housing costs. For example, wheelchair-bound or semi-ambulatory individuals may require ramps, holding bars, special bathroom designs, wider doorways, lower cabinets, and other interior and exterior design features. Affordable housing and housing programs that address accessibility can assist these individuals with their specific housing needs.

There are a number of housing types appropriate for people living with a disability: rent-subsidized homes, licensed and unlicensed single-family homes, inclusionary housing, Housing Choice vouchers, special programs for home purchase, HUD housing, and group homes. The design of housing accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of considerations that are important in serving this needs group. Incorporating barrier-free design in all new multifamily housing (as required by California and federal fair housing laws) is especially important to provide the widest range of choices for disabled residents. Special consideration should also be given to the affordability of housing, as people with disabilities may be living on a fixed income.

Both the federal Fair Housing Act and the California Fair Employment and Housing Act impose an affirmative duty on local governments to make reasonable accommodations (that is, modifications or exceptions) in their zoning and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. For example, it may be a reasonable accommodation to allow covered ramps in the setbacks of properties that have already been developed to accommodate residents with mobility impairments.

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 13
The City does not require special building codes or onerous project review to construct, improve, or convert housing for persons with disabilities. Community care facilities with six or fewer persons are permitted by right in all residential zoning districts. Community care facilities with seven or more persons are permitted in all residential zoning districts, subject to Conditional Use Permit (CUP) approval. In addition, several housing types for persons with disabilities require a CUP that is no more stringent than those for other conditional uses:
• Congregate care facilities are permitted with an approved use permit in all residential zones and the Community Commercial (CC) zone.
• Family Day Care for 14 or fewer persons is also permitted in the Residential Multifamily (RMF) and Residential Community (RC) zones.

The City has adopted the 2019 California Building Code (CBC). Standards within the CBC include provisions to ensure accessibility for persons with disabilities. These standards are consistent with the Americans with Disabilities Act. No local amendments that would constrain accessibility or increase the cost of housing for persons with disabilities have been adopted.

As discussed previously, Laguna Woods has two residential care facilities that are licensed by the State Community Care Licensing Division of the California Department of Social Services: Las Palmas and the Regency.

1.2.3.5 Developmentally Disabled
According to California Welfare and Institutions Code Section 4512, a developmental disability means “a disability that originates before an individual attains age 18 years, continues, or can be expected to continue, indefinitely, and constitutes a substantial disability for that individual. As defined by the Director of Developmental Services, in consultation with the Superintendent of Public Instruction, this term shall include intellectual disability, cerebral palsy, epilepsy, and autism. This term shall also include disabling conditions found to be closely related to intellectual disability or to require treatment similar to that required for individuals with an intellectual disability, but shall not include other handicapping conditions that are solely physical in nature.” Many developmentally disabled persons can live and work independently within a conventional housing environment. More severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person’s living situation as a child to an appropriate level of independence as an adult.

The California Department of Developmental Services (DDS) estimates that 30 persons with developmental disabilities were residing in Laguna Woods as of December 2020. All of the individuals with developmental disabilities residing in Laguna Woods were over the age of 18, and the majority of the developmentally disabled individuals in Laguna Woods live in the home of their parent, family, or guardian.

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 14
The Regional Center of Orange County is one of 21 regional centers in the State that provides point of entry to services for people with developmental disabilities. The center is a private, nonprofit community agency that contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families.

The most obvious housing need for persons with disabilities is housing that is adapted to their needs.

Most single-family homes are inaccessible to people with mobility and sensory limitations. Housing may not be adaptable to widened doorways and hallways, access ramps, larger bathrooms, lowered countertops, and other features necessary for accessibility. Location of housing is also an important factor for many persons with disabilities, as they often rely upon public transportation to travel to necessary services and shops. “Barrier free design” housing, accessibility modifications, proximity to services and transit, and group living opportunities are important in serving this group.

Within Laguna Woods, there are services currently in place tailored to mobility-impaired individuals including private bus services and subsidized taxi service that supplement public transportation options. The City has also adopted a reasonable-accommodations ordinance designed to reduce barriers for special-needs populations.

1.2.3.6 Homelessness
In collaboration with other nonprofit organizations, the Orange County Department of Community Resources is responsible for the countywide biennial point-in-time homeless count. For the purpose of the point-in-time count, the definition of homelessness includes unsheltered individuals and families “with a primary nighttime residence that is a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings, including a car, park, abandoned building, bus or train station, airport, or camping ground.” The count of sheltered homeless individuals and families includes those “living in a supervised publicly or privately operated shelter designated to provide temporary living arrangements (including congregate shelters, transitional housing, and hotels and motels paid for by charitable organizations or by federal, State, or local government programs for low-income individuals)” on the night designated for the count.

Based upon the 2019 point-in-time count, there were a total of 6,860 homeless individuals residing within Orange County, with 5 individuals counted in Laguna Woods. All of the homeless individuals within Laguna Woods were unsheltered, as there are no homeless shelters located within Laguna Woods. Since 2013, the homeless population in Orange County has steadily increased, with the largest increase occurring between 2017 and 2019 (43 percent increase). The 2019 Count indicated that all five of those counted within Laguna Woods were individuals and not part of a family unit experiencing homelessness.

People experiencing homelessness include families and individuals representing every race, age group, and community in Orange County. As the cost of living in Orange County and in all of Southern California continues to rise, and as unemployment remains high, homelessness has become more prevalent.

In the past, several factors have contributed to homelessness, including difficulty in obtaining employment, lack of ongoing care for the mentally ill, substance abuse, and inadequate education. In

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 15
recent years, however, a shortage of affordable housing opportunities coincident with a growing population of low-income renters has added to the problem.

Residential care facilities, which are facilities for individuals who require 24-hour supervision but who do not generally need medical care beyond routine health checks and medication monitoring, are permitted in Laguna Woods in any district, planned community, or specific plan area zoned for residential uses. The State of California is the authority for licensing, inspection, and enforcement for community care facilities throughout California. The State has preempted local controls over certain types of residential care facilities.

The County of Orange coordinates a comprehensive regional Continuum of Care (CoC) system to address homelessness in Orange County. The CoC is a housing and service delivery system for the homeless and is designed to do the following:
• Promote communitywide commitment to the goal of ending homelessness through regional coordination and collaboration.
• Advocate for funding and resources to end homelessness and provide funding for proven efforts by nonprofit providers, states, and local governments to quickly rehouse people experiencing homelessness, while minimizing the trauma and dislocation caused to homeless individuals, families, and communities by homelessness.
• Promote access to and effective utilization of mainstream programs by homeless individuals and families.
• Promote implementation of best practices and evidence-based approaches to homeless programing and services.

Other organizations and facilities in nearby or surrounding communities that may provide shelter and services to people experiencing homelessness in Laguna Woods are listed in Table L. It should be noted that some of these facilities prioritize their services to people experiencing homelessness who have a relationship to the cities in which they are located.

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 16
Table L: Local Facilities for Persons Experiencing Homelessness Organization/Facility Beds and/or Services Provided
Alternative Sleeping Location Emergency Shelter
(operated by Friendship Shelter)
20652 Laguna Canyon Rd
Laguna Beach, CA 92651
(949) 494-6928
Provides emergency night shelter for up to 45 people, a 30-day rapid housing program, as well as a drop-in day program between the hours of 10:00 a.m. and 1:00 p.m. This organization prioritizes services to those people experiencing homelessness who have a relationship to Laguna Beach.

Bridge Housing Program
(operated by Friendship Shelter)
PO Box 4252
Laguna Beach, CA 92652
(949) 494-6928
Provides dormitory-style housing for up to 32 people at a time, with all meals, case management, and an array of support services provided. Serves 120-140 individuals annually.

This organization also provides a permanent supportive housing program intended for clients who are chronically homeless and are unable to work due to a disability, including physical or mental health conditions. Clients are housed in scattered-site apartments and receive ongoing supportive services from Friendship Shelter staff. This organization prioritizes services to those people experiencing homelessness who have a relationship to Laguna Beach.

Human Options
5540 Trabuco Road
Irvine, CA 92620
(949) 737-5242
Provides emergency shelter for individuals or families in domestic violence situations seeking shelter. Serves approximately 350 adults and children annually. Services include individual and group counseling, case management, legal advocacy, and children’s programs. Also provides a transitional housing program.

Laura’s House
999 Corporate Drive, Suite 225
Ladera Ranch, CA 92694
(949) 361-3775
Provides emergency shelter (52 beds) for up to 45 days for individuals or families in domestic violence situations seeking shelter. Services include individual and group counseling, life skills classes, case management, legal advocacy, and children’s programs. Also provides transitional housing for 5–7 families at a time for 3–6 months.

Orange County Rescue Mission
One Hope Drive
Tustin, CA 92782
(714) 247-4379
Provides transitional, recuperative, and emergency housing for up to 262 homeless men, women, and children. Services include medical and dental care, meals, job training, case management, substance abuse treatment, parent training, anger management training, mental health care assessment and treatment, housing assistance and placement, and life skills training.

Note: Compiled by LSA, 2021. B based on information from https://www.homelessshelterdirectory.org/ and the individual websites for each service provider.

1.2.3.7 Farmworkers
Farmworkers are traditionally defined as persons whose primary incomes are earned through seasonal agricultural work. Farmworkers have special housing needs because they earn lower incomes than many other workers and move throughout the season from one harvest to the next.

The 2015–2019 ACS estimates that there are no Laguna Woods residents who hold farming, fishing, or forestry occupations. There is no agriculturally designated land within Laguna Woods.

The United States Department of Agriculture National Agriculture Statistics provide state- and countylevel data on hired farm labor across the United States. Within Orange County, a total of 99 farms reportedly hired 1,772 workers in 2017. Permanent workers, those who work 150 days or more, represent the largest category of workers with 1,106 workers (62 percent). A total of 666 workers (38 percent) are considered seasonal and work less than 150 days. Orange County reported 340 migrant workers (19 percent) with full-time hired labor and 176 unpaid workers in 2017.

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 17
Although there are no farmworkers identified within Laguna Woods, the median annual salary for the agriculture, forestry, fishing, hunting, and mining industry in Orange County in 2019 was $24,592, which is 29 percent of the Orange County median income ($85,398) and is considered a very low income (2019). Because farmworkers make up no percentage of Laguna Woods’ total population, no specific programs for this special-needs group are necessary. Given the limited need to provide for farmworker housing in Orange County, the City’s efforts to provide housing at affordable prices to very-low income households should address the needs of permanent and seasonal farmworker populations.

1.3 HOUSING STOCK CHARACTERISTICS
This section identifies the characteristics of Laguna Woods’ physical housing stock. This includes an analysis of housing growth trends, housing conditions, housing prices and rents, and housing affordability.

1.3.1 Housing Growth
Table M shows housing production in Laguna Woods, compared to neighboring cities and Orange County as a whole. According to the California Department of Finance, Laguna Woods experienced a slight reduction in housing units between 2000 and 2010. This is in contrast to Orange County, which saw an almost 8 percent increase in housing stock over the same decade. The surrounding communities of Irvine and Lake Forest saw large amounts of new housing construction in the early 2000s.

Table M: Regional Housing Growth Trends
Jurisdiction Total Housing Units Percent Change
2000 2010 2020 2000–2010 2010–2020
Laguna Woods 13,629 13,079 13,079 -4.0% 0.0%
Aliso Viejo N/A 18,861 20,192 N/A 7.1%
Irvine 53,711 81,110 108,822 51.0% 34.2%
Laguna Beach 12,965 12,923 13,027 -0.3% 0.8%
Laguna Hills 10,324 10,989 11,298 6.4% 2.8%
Lake Forest 20,486 27,161 30,244 32.6% 11.4%
Orange County 969,484 1,046,118 1,111,421 7.9% 6.2%
Sources: (1) CA Dept. of Finance E-8 Historical Population and Housing Estimates, 2010. (2) CA Dept. of Finance E-5 Population and Housing Unit Estimates, 2020.

N/A = Not Applicable
The California Department of Finance estimates that in 2020 there were 13,079 housing units within Laguna Woods. This has remained consistent since 2010. The increase in housing stock in Orange County was notably higher at 6 percent. As Laguna Woods is a maturing suburban community with primarily small site and infill development, it is expected that the increase in the housing stock in Laguna Woods would be modest and lower than the countywide rate.

1.3.2 Housing Type and Tenure
Table N presents the mix of housing types in Laguna Woods. The California Department of Finance estimates that of the 13,079 units in Laguna Woods, 4,639 are single-family units (36 percent).

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 18
Approximately 65 percent of Laguna Woods’ housing stock is multifamily units. Laguna Woods also has no mobile home parks within its local housing stock. The composition of Laguna Woods’ housing stock has remained relatively unchanged over the last two decades.

Table N: Housing Units by Type (2000–2020)
Unit Type 2000 2010 2020
Units Percent Units Percent Units Percent
Single-Family (SF) Detached 675 5.3% 918 7.0% 918 7.0%
SF Attached 3,726 29.4% 3,721 28.5% 3,721 28.5%
Total SF 4,401 34.8% 4,639 35.5% 4,639 35.5%
2 to 4 Units 2,298 18.2% 2,237 17.1% 2,237 17.1%
5 or more units 5,934 46.9% 6,203 47.4% 6,203 47.4%
Total Multi-Family 8,232 65.0% 8,440 64.5% 8,440 64.5%
Mobile Homes & Other 15 0.1% 0 0.0% 0 0.0%
Total Housing Units 12,657 100.0% 13,079 100.0% 13,079 100.0% Vacancy Rate 7.52% -- 11.7% -- 10.8% --
Sources: (1) U.S. Census Bureau, 2000 and 2010 Census.
(2) CA Dept. of Finance E-5 Population and Housing Unit Estimates, 2020.

Housing tenure refers to whether a housing unit is owned, is rented, or is vacant. Tenure is an important indicator of the housing climate of a community, reflecting the relative cost of housing opportunities and the ability of residents to afford housing. Tenure also influences residential mobility, with owner units generally evidencing lower turnover rates than rental housing. Table O indicates the total number of renter-occupied and owner-occupied housing units in Laguna Woods in 2010 and 2018. The ownership rate within Laguna Woods has declined slightly from 78 percent in 2010 to 74 percent in 2018. However, the homeownership rate continues to be higher than the countywide homeownership rate of 57 percent.

Table O: Housing Tenure (2010 and 2018)
Occupied Housing
Units
2010 2018
Households Percent Households Percent
Renter 2,523 22.0% 2,851 25.6%
Owner 8,947 78.0% 8,305 74.4%
TOTAL 11,470 100% 11,156 100%
Source: 2010 and 2018 ACS 5-year estimates.

1.3.3 Vacancy Rate
A vacancy rate measures the overall housing availability in a community and is often a good indicator of how efficiently for-sale and rental housing units are meeting the current demand for housing. A vacancy rate of 5 percent for rental housing and 2 percent for ownership housing is generally considered healthy and suggests that there is a balance between the demand and supply of housing.

A lower vacancy rate may indicate that households are having difficulty in finding housing that is affordable, leading to overcrowding or households having to pay more than they can afford. A low vacancy rate or a particularly tight housing market may also lead to high competition for units, raising rental and housing prices substantially.

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 19
The 2014–2018 ACS estimated that the vacancy rate for owner-occupied units was 2.3 percent, and the rental vacancy rate was 5.9 percent. These vacancy rates suggest a relatively healthy housing market for both residents looking to purchase a home and renters.

1.3.4 Housing Age and Condition
The age of a community’s housing stock can provide an indicator of overall housing conditions.

Typically, housing over 30 years in age is likely to have rehabilitation needs that may include new plumbing, roof repairs, foundation work, and other repairs. Table P displays the age of occupied housing stock by tenure as of 2018. Over two-thirds of Laguna Woods’ housing stock was built between 1960 and 1979. Of Laguna Woods’ current housing stock, approximately 98 percent will be over 30 years old by the end of the 2021 to 2029 planning cycle. As a built-out community, Laguna Woods has a low proportion of newer units, with less than 0.8 percent built since 2000.

Table P: Age of Housing Stock (2019)
Year Structure Built Renter-Occupied Units Owner-Occupied Units Total Occupied Units Number Percent Number Percent Number Percent
2010 or later 12 0.4% 0 0.0% 12 0.1%
2000-2009 58 2.0% 14 0.2% 72 0.7%
1980-1999 377 12.9% 391 4.8% 768 7.0%
1960-1979 2,229 76.1% 6,874 85.1% 9,103 82.7%
1940-1959 254 8.7% 718 8.9% 972 8.8%
1939 or earlier 0 0.0% 76 0.9% 76 0.7%
Total 2,930 100.0% 8,073 100.0% 11,003 100.0%
Source: 2019 ACS 5-year estimates.

A greater proportion of rental housing (12.9 percent) was constructed between 1980 and 1999, when compared to owner-occupied housing (4.8 percent). Conversely, a greater proportion of owneroccupied housing was constructed between 1960 and 1979 (85 percent), compared to renteroccupied housing (82 percent).

The City’s code enforcement services provider indicated that the City opened 88 cases in 2019 and 123 cases in 2020, the majority of which related to commercial properties (87.5 percent in 2019 and

86.9 percent in 2020). The City’s code enforcement services provider conducted a windshield survey in early October 2021 of all residential units within Laguna Woods to identify housing units with visible signs of damage or disrepair (e.g., deteriorated roofs, stucco damage, and broken or deteriorated windows) in an effort to estimate the number of housing units that are in need of rehabilitation and replacement. The windshield survey identified only five locations with minor maintenance issues, including minor wood rot, minor water damage on an exterior wall, and a crack at the top of a window.

Given the small number of code enforcement cases and limited extent of the issues identified in the windshield survey, it is reasonable to conclude that Laguna Woods is a generally well-maintained community. Most of the City’s housing stock is located within actively managed communities with boards or associations and on-site property management that ensure adequate maintenance.

Consequently, there are few violations or complaints related to residential properties that require City intervention.

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 20
Due to Laguna Woods’ relative lack of substandard housing and health and safety code violations, the City does not require any specialized code enforcement programs (e.g., occupancy inspection, rental inspection, or neighborhood enhancement). Nevertheless, the Housing Element includes a program for the City to formalize a proactive code enforcement program that focuses on housing-related rehabilitation needs, results in repairs, and seeks to mitigate potential cost, displacement, and relocation impacts on residents. As the name suggests, this effort is meant to be proactive to help promote the good condition and upkeep of Laguna Woods’ housing stock.

1.3.5 Housing Costs and Affordability
The cost of housing is directly related to the extent of housing problems in a community. If housing costs are relatively high in comparison to household income, there will be a higher prevalence of overpayment and overcrowding. This section summarizes the cost and affordability of the housing stock to Laguna Woods residents.

1.3.5.1 Rental Housing Market
According to the 2014–2018 ACS, the rental vacancy rate in Laguna Woods was 5.9 percent, indicating a tight rental market in Laguna Woods. A point-in-time survey of available rental units within Laguna Woods listed on Zillow and Apartments.com was conducted in early April 2021. While not comprehensive, it provides a snapshot of the types of units available, as well as typical market rents.

Table Q includes the results of the survey by number of bedrooms.

Table Q: Median and Average Market Rents by Number of Bedrooms (April 2021)
Number of Bedrooms Units Advertised Rent Range Average Rent Median Rent 0 2 $2,320-$2,520 $2,420 $2,420
1 16 $1,550-$2,700 $2,039 $1,825
2 58 $2,150-3,950 $2,378 $2,200
3 5 $2,400-$3,950 $2,964 $2,895
All Units 81 $1,550-3,950 $2,349 $2,200
Source: Zillow.com and Apartments.com, accessed April 9, 2021.

A total of 81 units were listed for rent, with a median rent of $2,200. Two-bedroom units were the most prevalently available in Laguna Woods, with rents ranging from $2,150 to $3,950 and a median rent of $2,200.

1.3.5.2 Homeownership Market
Table R shows median home sale prices over 2 years for Laguna Woods and nearby communities. The February 2021 median home sales price in Laguna Woods represented a 14.5 percent decrease from February 2020. In contrast, Orange County as a whole experienced an increase in median sales prices during that time period, and many neighboring jurisdictions also saw only slight to moderate

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 21
Table R: Annual Median Home Prices (2020–2021)
Jurisdiction February 2020
Median Sales Price
February 2021
Median Sales Price
Percent Change
2020-2021
Laguna Woods $380,000 $325,000 -14.5%
Aliso Viejo $545,000 $675,000 23.9%
Irvine $871,500 $900,000 3.3%
Laguna Beach $1,972,500 $2,230,000 13.1%
Laguna Hills $785,000 $813,000 3.6%
Lake Forest $742,000 $789,000 6.3%
Orange County $748,500 $820,000 9.6%
Source: Corelogic.com, California Home Sale Activity by City, February 2021. increases. With the exception of Laguna Woods, all of the communities listed experienced an increase in home sale prices between February 2020 and February 2021, with Aliso Viejo and Laguna Beach seeing double-digit increases. In February 2021, the median home sales price for Laguna Woods was $325,000, representing a decrease of over 14 percent from February 2020. Given that this price decline is somewhat anomalous in comparison to other nearby cities, it may be tied to the severe impacts that the COVID-19 pandemic has had on the senior population.

1.3.5.3 Housing Affordability
The affordability of housing in Laguna Woods can be assessed by comparing market rents and sales prices with the amount that households of different income levels can afford to pay for housing.

Compared together, this information can reveal who can afford what size and type of housing as well as indicate the types of households that would most likely experience overcrowding or overpayment.

Table S provides estimates of affordable rents and home prices based on HCD’s 2021 income limits for Orange County; current mortgage rates (i.e., 3.0 percent for a 30-year fixed-rate mortgage); and cost assumptions for utilities, taxes, and insurance.

Based on the housing costs presented earlier in Table R, Laguna Woods residents with lower incomes are unable to afford purchasing a home in Laguna Woods. Additionally, based on the overall median rent presented in Table Q, affordable rentals for lower-income households are difficult to find in Laguna Woods.

Extremely Low-Income Households. Extremely low-income households earn 30 percent or less of the AMI. Based on the assumptions utilized for Table S, the affordable home price for an extremely lowincome household ranges from $66,158 for a five-person household to $79,721 for a two-person household; therefore, homeownership is out of reach for Laguna Woods residents within this income category. Affordable rents for extremely low-income households range from $507 to $637 per month.

Based on the median rents presented in Table Q, even one-bedroom units are unaffordable for all extremely low-income households. Severe overpayment or overcrowding may occur as a result of the gap between market costs and affordability.

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 22
Table S: Estimated Affordable Housing Price by Income and Household Size (2021) Annual
Income Limits
Affordable
Monthly
Housing Cost
Utility
Allowance
(2020)
Taxes, Insurance
and HOA
Affordable
Home Price
Affordable
Rent
Extremely Low Income (0–30% AMI)
1-Person (studio) $28,250 $706 $199 $247 $68,591 $507
2-Person (1 bedroom) $32,300 $808 $222 $283 $79,721 $586 3-Person (2 bedroom) $36,350 $909 $293 $318 $78,471 $616 4 Person (3 bedroom) $40,350 $1,009 $372 $353 $74,783 $637 5 Person (4 bedroom) $43,600 $1,090 $457 $382 $66,158 $633 Very Low Income (30–50% AMI)
1-Person $47,100 $1,178 $199 $412 $149,297 $979
2-Person $53,800 $1,345 $222 $471 $171,829 $1,123
3-Person $60,550 $1,514 $293 $530 $182,043 $1,221
4 Person $67,250 $1,681 $372 $588 $190,080 $1,309
5 Person $72,650 $1,816 $457 $636 $190,607 $1,359
Low Income (50–80% AMI)
1-Person $75,300 $1,883 $199 $659 $270,000 $1,684
2-Person $86,050 $2,151 $222 $753 $309,992 $1,929
3-Person $96,800 $2,420 $293 $847 $337,335 $2,127
4 Person $107,550 $2,689 $372 $941 $362,569 $2,317
5 Person $116,200 $2,905 $457 $1,017 $377,130 $2,448
Median Income (80–100% AMI)
1-Person $74,700 $1,868 $199 $654 $267,365 $1,669
2-Person $85,350 $2,134 $222 $747 $306,962 $1,912
3-Person $96,050 $2,401 $293 $840 $334,238 $2,108
4 Person $106,700 $2,668 $372 $934 $358,814 $2,296
5 Person $115,250 $2,881 $457 $1,008 $373,243 $2,424
Moderate Income (100–120% AMI)
1-Person $89,650 $2,241 $199 $784 $331,604 $2,042
2-Person $102,450 $2,561 $222 $896 $380,359 $2,339
3-Person $115,250 $2,881 $293 $1,008 $416,465 $2,588
4 Person $128,050 $3,201 $372 $1,120 $450,462 $2,829
5 Person $138,300 $3,458 $457 $1,210 $471,875 $3,001
Sources: (1) HCD, 2021;
(2) Orange County Housing Authority Utility Allowance Schedule, December 2020; (3) LSA Associates, Inc., 2021.

Assumptions: 2021 HCD income limits; 30.0% gross household income as affordable housing cost; 35.0% of monthly affordable cost for taxes and insurance, 10% down payment; and 3.0% interest rate for a 30-year fixed-rate mortgage loan. Utilities based on Orange County Housing and Community Development Utility Allowance Schedule.

AMI = Annual Median Income
HOA = Homeowners Association
Very Low-Income Households. Very low-income households earn between 30 percent and 50 percent of the AMI. Very low-income households can afford between $979 and $1,359 on monthly rent, depending on household size. However, based on the market rents presented in Table Q, rental units of any size in Laguna Woods would require a very low-income household to pay over the affordability threshold of 30 percent. Home ownership is also unaffordable for very low-income households in Laguna Woods, with affordable home prices for this income category ranging from $149,297 to $190,607, well below Laguna Woods’ median home sales price of $325,000 in February 2021.

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 23
Low-Income Households. Low-income households earn between 50 and 80 percent of the AMI.

Depending on household size, a low-income household can afford monthly rent between $1,684 and $2,448. Based on the market rents in listed Table Q, low-income households would generally be able to afford some one-bedroom units in Laguna Woods. However, larger rental units are still unaffordable for this income category, which may result in overpayment or overcrowding due to larger families renting smaller units. Based on Table S, low-income households can afford home sale prices between $270,000 and $377,130. Therefore, homeownership remains largely out of reach for this income group when compared with Laguna Woods’ median home sales price as low-income households may only be able to afford the purchase of a small home.

Median-Income Households. Median-income households earn between 80 and 100 percent of the AMI. Median-income households can afford to purchase a home with a purchase price ranging from $267,365 to $373,243. With Laguna Woods’ median home sales price at $325,000 in February 2021, homeownership is affordable for median-income households seeking a smaller home. Medianincome households can afford a monthly rent payment ranging from $1,669 for a one-person household to $2,424 for a five-person household. Based on median market rents within Laguna Woods, median-income households can generally afford one- and two-bedroom rental units, and larger households may be able to afford some lower-priced three-bedroom units. However, four- and five-person households may be overcrowded into smaller units or overpay to afford an appropriately sized unit.

Moderate-Income Households. Moderate-income households earn 100 to 120 percent of the AMI.

Moderate-income households can afford a home sales price ranging from $331,604 to $471,875.

Therefore, with the median home sales price in Laguna Woods at $325,000 in February 2021, homeownership is affordable to households with moderate incomes. Moderate-income households can afford monthly rent from $2,042 for a one-person household to $3,001 for a five-person household. Based on the market rents presented in Table Q, moderate-income households can generally afford one-, two-, and three-bedroom units within Laguna Woods.

1.3.6 Assisted Housing at Risk of Conversion
State Housing Element law requires an analysis of the potential for currently rent-restricted lowincome housing units to convert to market rate housing and to propose programs to preserve or replace any units “at risk” of conversion. This section presents an inventory of all assisted rental housing in Laguna Woods and evaluates those units at risk of conversion during the 8-year 2021 to 2029 planning period.

1.3.6.1 Assisted Housing Inventory
Laguna Woods contains one development of assisted multifamily rental housing with 17 affordable units, as presented in Table T. This inventory includes all multifamily rental units assisted under federal, State, and local programs, including HUD, State/local bond programs, density bonus, inclusionary, and local direct assistance programs. As no units within Laguna Woods are at risk of conversion to market rate units in 10 years or less, an analysis has not been conducted to evaluate the replacement value, qualified entities to manage such a project, or potential funding sources for at-risk units.

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 24
Table T: Inventory of Subsidized Rental Housing for Lower Income Households Project Name Tenant Type Total Units Affordable
Units
Applicable
Programs Potential Conversion Date
Not At-Risk
San Sebastian Senior 134 17 Density Bonus October 16, 2054 Total 134 17

1.3.7 Existing Housing Needs

1.3.7.1 Overpayment
Overpayment remains a critical issue for many Laguna Woods residents, particularly renters and lower-income households. Affordability problems occur when housing costs become so high in relation to income that households have to pay an excessive proportion of their income for housing.

According to the metric utilized by HUD, a household is cost burdened if housing costs (including utilities) exceed 30 percent of gross household income. Severe cost burden occurs when housing costs exceed 50 percent of gross income.

Table U indicates the number of cost-burdened households within Laguna Woods and Orange County by tenure. As shown in Table U, overpayment impacts 70 percent and 53 percent of renter households in Laguna Woods and Orange County, respectively. Overpayment impacts nearly 41 percent and 31 percent of owner households in Laguna Woods and Orange County, respectively. More renter households are also impacted by severe cost burden, compared to owner households in both the City and the County. Laguna Woods has a higher percentage of cost burdened and severely cost burdened households among both renter and owner households.

Table U: Cost Burden by Tenure
Renter Households Owner Households Total Households
Number Percent of
Total Number Percent of Total Number Percent of Total
Laguna Woods
With Cost Burden >30% 1,885 70.1% 3,475 40.6% 5,360 47.6% With Cost Burden >50% 1,210 45.0% 1,875 21.9% 3,085 27.4% Total 2,690 100.0% 8,560 100.0% 11,250 100.0%
Orange County
With Cost Burden >30% 230,720 52.9% 184,825 31.4% 415,545 40.5% With Cost Burden >50% 118,650 27.2% 79,255 13.5% 197,905 19.3% Total 436,425 100.0% 588,550 100.0% 1,024,975 100.0%
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2017 ACS 5-year estimates.

ACS = American Community Survey
HUD = United States Department of Housing and Urban Development

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 25
Table V provides more detailed information on cost burden by income group, tenure, and household type. Overall, cost burden tends to impact proportionately more senior renters than senior homeowners, with the exception of low-income senior renters. Rates of overpayment for small families who rent were 100 percent in the very low and low-income categories. Extremely low-income small-family households who own their own homes are also heavily impacted, with 97 percent experiencing a cost burden and 83 percent experiencing a severe cost burden. As described earlier, Laguna Woods has very few large-family households. Of the few large-family households in Laguna Woods, none are affected by a high cost burden.

Table V: Cost Burden by Income Level, Tenure, and Household Type Income
Group
Cost
Burden
Seniors Small Family Large Family
>30% >50% Total >30% >50% Total >30% >50% Total
Extremely
Low
(<= 30%
HAMFI2)
Owner 79% 69% 1865 97% 83% 30 0% 0% 0
Renter 87% 86% 800 0% 0% 0 0% 0% 0
Very Low
(31–50%
HAMFI)
Owner 52% 16% 1750 0% 0% 0 0% 0% 0
Renter 77% 57% 635 100% 100% 4 0% 0% 0
Low
(51–80%
HAMFI)
Owner 25% 6% 1780 0% 0% 50 0% 0% 0
Renter 85% 19% 455 100% 0% 20 0% 0% 0
Moderate
(81–100%
HAMFI)
Owner 15% 3% 965 13% 0% 75 0% 0% 0
Renter 65% 0% 200 0% 0% 15 0% 0% 0
Above
Moderate
(>100%
HAMFI)
Owner 3% 0% 1580 0% 0% 105 0% 0% 0
Renter 3% 0% 375 0% 0% 15 0% 0% 0
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2017 ACS 5-year estimates. 1 Data presented in this table are based on special tabulations from the ACS data. Due to the small sample size, the margins for error can be significant. Interpretations of these data should focus on the proportion of households in need of assistance rather than on precise numbers. 2 HAMFI = HUD Area Median Family Income
ACS = American Community Survey
HUD = United States Department of Housing and Urban Development

1.3.7.2 Overcrowding
The United States Census defines overcrowding as an average of more than one person per room in a housing unit, including the living and dining room but excluding kitchens, bathrooms, and hallways.

Severe overcrowding occurs when a unit is occupied by more than 1.5 persons per room. The incidence of overcrowded housing is a general measure of whether there is an available supply of adequately sized housing units. Overcrowding can also occur when housing costs are high in relation to income and families are forced to live together in order to pool income to pay the rent or mortgage.

Table W shows the incidence of overcrowding in Laguna Woods by tenure, as estimated by the 2014– 2018 ACS.

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 26
Table W: Overcrowding by Tenure
Overcrowding Laguna Woods Orange County
Number Percent of Total Number Percent of Total
Owner Occupied Units 8,305 100.0% 592,269 100.0%
Not Overcrowded (1.00 or Less Occupants/Room) 8,292 99.8% 570,469 96.3% Overcrowded

1.01 to 1.50 Occupants/Room 0 0.0% 15,731 2.7%

1.51 or More Occupants/Room 13 0.2% 6,069 1.0%
Renter Occupied Units 2,851 100.0% 440,104 100.0%
Not Overcrowded (1.00 or Less Occupants/Room) 2,851 100.0% 370,391 84.2% Overcrowded

1.01 to 1.50 Occupants/Room 0 0.0% 43,900 10.0%

1.51 or More Occupants/Room 0 0.0% 25,813 5.9%
Total Overcrowded 13 0.1% 91,513 8.9%
Source: 2018 ACS 5-year estimates.

As shown in Table W, an estimated total of 13 households experienced overcrowding in Laguna Woods in 2018, representing just under 0.1 percent of all households in Laguna Woods. Countywide, approximately 9 percent of households experienced overcrowded conditions. All 13 of the households in Laguna Woods that experience overcrowding are in the severe overcrowding category.

1.3.7.3 Displacement and Disproportionate Housing Needs Using the Urban Displacement Project’s Gentrification and Displacement maps, the westernmost areas of Laguna Woods fall into the following displacement typologies: 3

• Stable/advanced exclusive (with risk factors of being susceptible to rent change); • Stable moderate/mixed-income (with risk factors of being located in an area that is susceptible to rent change, has a rent gap, and is a hot market); and
• Low-income/susceptible to displacement (with risk factors of being mostly low income, being located in an area that is susceptible to rent change, has a rent gap, and is a hot market).

The eastern and southernmost areas fall into the following displacement typologies:
• At risk of becoming exclusive (with risk factors of being located in an area that is susceptible to rent change and that has a rent gap, and is a hot market); • Low-income/susceptible to displacement (with risk factors of being mostly low income, being located in an area that is susceptible to rent change, has a rent gap, and is a hot market); and • Ongoing displacement (with risk factors of being mostly low income, being located in an area that is susceptible to rent change, has a rent gap, and is a hot market). 3 Los Angeles – Gentrification and Displacement. Urban Displacement Project. Website: https://www. urbandisplacement.org/maps/los-angeles-gentrification-and-displacement/ (accessed October 1, 2021).

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 27
Job displacement risk varies throughout Laguna Woods, with the lowest rate being 5.2 percent in central Laguna Woods, and the highest rate being 23.8 percent in the easternmost part of Laguna Woods.

In summary, although the majority of Laguna Woods has a low risk of displacement, certain sections of Laguna Woods, particularly the eastern and southernmost areas, and specifically Census Tract 626.46, are either susceptible to displacement or experiencing ongoing displacement, as well as at risk for job displacement.

1.4 AFFIRMATIVELY FURTHERING FAIR HOUSING
In January 2019, Assembly Bill (AB) 686 introduced an obligation to affirmatively further fair housing (AFFH) into California State law. AB 686 defined “affirmatively further fair housing” to mean “taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity” for persons of color, persons with disabilities, and other protected classes. AB 686 added an assessment of fair housing to the Housing Element that includes the following components: a summary of fair housing issues and assessment of local fair housing enforcement and outreach capacity, an analysis of segregation patterns and disparities in access to opportunities, an assessment of contributing factors, and an identification of fair housing goals and actions.

To assist in this analysis, HCD and the California Tax Credit Allocation Committee (TCAC) convened the California Fair Housing Task Force to “provide research, evidence-based policy recommendations, and other strategic recommendations to HCD and other related State agencies/departments to further the fair housing goals (as defined by HCD).” The California Fair Housing Task Force has created opportunity maps to identify resource levels across the State “to accompany new policies aimed at increasing access to high opportunity areas for families with children in housing financed with 9% Low Income Housing Tax Credits (LIHTCs).” These opportunity maps are made from composite scores of four different domains made up of a set of indicators. Table X shows the full list of indicators.

Table X: Domains and Lists of Indicators for Opportunity Maps Domain Indicator
Economic  Poverty
 Adult education
 Employment
 Job proximity
 Median home value
Environmental  CalEnviroScreen 3.0 pollution Indicators and values Education  Math proficiency
 Reading proficiency
 High School graduation rates
 Student poverty rates
Poverty and Racial Segregation  Poverty: tracts with at least 30% of population under federal poverty line  Racial Segregation: Tracts with location quotient higher than 1.25 for Blacks, Hispanics, Asians, or all people of color in comparison to the County Source: California Fair Housing Task Force, Methodology for the 2020 TCAC/HCD Opportunity Maps, June 2020.

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 28

1.4.1 Fair Housing Issues

1.4.1.1 Discrimination, Enforcement, and Outreach
The Fair Housing Council of Orange County (FHCOC) works to ensure equal access to housing opportunities and elimination of housing discrimination by providing services throughout Orange County (including Laguna Woods) including community education, individual counseling, mediation, and low-cost advocacy. The FHCOC investigates claims of housing discrimination and assists with referrals to the California Department of Fair Employment and Housing, the State agency that investigates complaints of employment and housing discrimination. Questions received by the City regarding potential housing discrimination are referred to the FHCOC. The City does not have a record of the number of issues or complaints within Laguna Woods that the FHCOC has addressed.

The Orange County Analysis of Impediments to Fair Housing Choice (dated May 27, 2020) (Orange County AI), prepared by the Lawyers’ Committee for Civil Rights Under Law, examines “structural barriers to fair housing choice and access to opportunity for members of historically marginalized groups protected from discrimination by the federal Fair Housing Act (FHA).” According to the Orange County AI, the FHCOC received 363 allegations of housing discrimination between 2015 and 2019 within the Urban County (which includes Laguna Woods). Of those allegations, 179 cases were opened within the Urban County “where the allegations seemed sufficiently meritorious to warrant further investigation and/or action” and testing included “362 systemic onsite tests, either paired or ‘sandwich’, 51 tests occurring in the jurisdiction and 215 other testing activities.” The number of fair housing cases and tenant/landlord issues addressed by FHCOC represents approximately 0.03 percent of the population and four percent of households in the Urban County area.

According to HUD’s Fair Housing Enforcement and Outreach (FHEO) Inquiries by City data (found in the Fair Housing Enforcement and Outreach Capacity data layer on HCD’s AFFH Data Viewer), Laguna Woods had 0.24 inquiries per 1,000 people between 2013 and 2021. This ratio is slightly higher than the adjacent cities of Laguna Beach (0.17), and Laguna Hills (0.16), but lower than the cities of Irvine (0.28) and Aliso Viejo (0.37). Of the four complaints during this period, two were found to have no valid basis or issue and two were not resolved due to a failure to respond. None of the complaints appear to be associated with discrimination due to disability, race, familial status, national origin, religion, sex, or color.

The City complies with existing fair housing laws and regulations, including by explicitly prohibiting discrimination against persons receiving housing assistance (Section 13.25.110(h) of the City’s Zoning Code). A review of the City’s Zoning Code and other policies and regulations conducted as part of the preparation of this Housing Element found no instances of inconsistency with existing fair housing laws and regulations, nor any regulatory impediments to the City’s ability to investigate complaints, obtain remedies, or engage in fair housing testing.

Chapter 1.06 of the City’s Municipal Code, which enables the use of administrative citations and civil fines for code enforcement, defines “code” as including “the Building Code, and all Uniform Codes or other codes or regulations of the State of California or the County of Orange or otherwise applicable to the City of Laguna Woods,” in addition to City-adopted ordinances. The City Manager possess broad authority pursuant to Section 1.06.020(25) of the City’s Zoning Code to designate any officer, agent or employee of the City to enforce provisions of the code.

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 29
Housing-related code enforcement is currently provided under contract by two professional firms with extensive qualifications and experience – Interwest Consulting Group (focusing on building issues) and Willdan Engineering (focusing on zoning and quality of life issues, as well as providing support for building issues). Both contracts allow for an expansion of base services on an “asneeded” basis (e.g., to handle increased or unusually complex cases), as well as access to technical experts (e.g., Certified Access Specialists) when necessary. The City’s Development Programs Analyst manages both contracts and provides staff-level oversight of code enforcement services.

When necessary, legal and litigation services for housing-related code enforcement is provided by Rutan & Tucker, LLP in that firm’s role as City Attorney.

After considering the AFFH analysis contained in this Housing Needs Assessment, the City has concluded that enhanced fair housing-related outreach could benefit existing and prospective residents of Laguna Woods. To that end, programs H-3.1.2, H-3.2.1, and H-3.2.2 are included and consistent with HCD’s AFFH guidance memorandum dated April 2021 in that they involve a variety of methods, proactive marketing, language access, accessibility for persons with disabilities, and consultation with relevant organizations. The alignment of those programs with HCD guidance and assessment of contributing factors is further described in Tables AB and AC.

1.4.1.2 Patterns of Segregation and Minority Concentrations Ethnic and racial composition of a region is useful in analyzing housing demand and any related fair housing concerns, as it tends to demonstrate a relationship with other characteristics such as household size, locational preferences, and mobility. According to the California Fair Housing Task Force Opportunity Maps, none of the census tracts within Laguna Woods are designated as areas with high segregation and poverty.

According to HUD, the definition of a racially/ethnically concentrated area of poverty (R/ECAP) involves a racial/ethnic concentration threshold and a poverty test. The racial/ethnic concentration threshold states that R/ECAPs must have a non-white population of 50 percent or more, and the poverty threshold states that a neighborhood can be identified as a R/ECAP if it has a poverty rate that exceeds 40 percent or is three or more times the average poverty rate for the various census tracts in the metropolitan/micropolitan area, whichever threshold is lower.

As depicted in Table N in Exhibit C, Housing Sites Inventory, Laguna Woods does not include any neighborhoods that meet the poverty test because the percentage of residents living below the federal poverty threshold is 15.7 percent or lower in each of Laguna Woods’ census tracts. Table Y provides data regarding race, ethnicity, and median household income in Orange County, Laguna Woods, the neighboring cities of Aliso Viejo, Laguna Hills, Laguna Beach, and Lake Forest, and each of the eight census tracts that are partially or entirely within Laguna Woods.

As Table Y indicates, the White population is the largest race/ethnic group in each of the census tracts in Laguna Woods as well as within Orange County and all neighboring cities of Aliso Viejo, Laguna Hills, Laguna Beach, and Lake Forest. There is also a large Asian population that is uniformly present in each of Laguna Woods’ eight census tracts, and within the cities surrounding Laguna Woods with a slightly larger percentage of Asians (33.3 percent) present in Census Tract 626.21.

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 30
Table Y: Racial/Ethnic Concentrations and Income Levels Jurisdiction White1
Black or
African
American1
American
Indian and
Alaska
Native1
Asian1
Native
Hawaiian
and Pacific
Islander1
Some
other
Race or
Two or
More
Races1
Hispanic
or Latino
(of any
race)1
Median
Household
Income2
Orange
County 61.0% 1.8% 0.5% 20.5% 0.3% 16.0% 34.1% $90,234
Laguna
Woods 76.3% 0.7% 0.1% 19.7% 0.0% 3.2% 5.8% $44,020
Aliso Viejo 80.0% 2.4% 0.5% 15.6% 0.1% 11.4% 18.1% $112,689 Laguna Hills 70.9% 1.5% 0.1% 14.7% 0.1% 12.9% 22.0% $100,985 Laguna Beach 89.5% 0.8% 0.1% 3.8% 0.0% 5.7% 8.2% $129,983 Lake Forest 65.9% 2.2% 1.0% 18.8% 0.1% 11.9% 21.9% $109,492 Census Tract
626.21 61.5% 1.6% 0.1% 9.6% 0.0% 7.2% 12.6% $111,425
Census Tract
626.22 78.2% 0.4% 0.0% 19.0% 0.0% 2.4% 7.9% $44,119
Census Tract
626.25 64.1% 0.3% 0.0% 12.9% 0.0% 22.8% 32.5% $45,214
Census Tract
626.41 65.4% 1.6% 0.0% 18.1% 0.0% 14.8% 22.0% $88,986
Census Tract
626.46 72.9% 2.9% 0.0% 19.2% 0.0% 5.0% 7.0% $41,875
Census Tract
626.47 67.4 3.7% 0.3% 17.3% 0.0% 11.2% 21.8% $54,327
Census Tract
626.48 75.6% 0.0% 0.0% 19.3% 0.0% 5.0% 4.2% $45,000
Census Tract
626.49 79.3% 0.0% 0.0% 17.2% 0.0% 3.4% 11.8% $60,254
1 American Community Survey, 2019 5-Year Estimates. Table DP05. 2 American Community Survey, 2019 5-Year Estimates. Table S1901.

The only census tract with a slightly outlying ethnic composition is Census Tract 626.25, where 325.4 percent of the population is Hispanic or Latino (of any race). The surrounding cities of Aliso Viejo, Laguna Hills, Laguna Beach, and Lake Forest all have average percentages of Hispanic population. As shown in Table Y, the median household income in Census Tract 626.21 ($111,425) is substantially higher than Laguna Woods overall. The median household incomes in all cities surrounding Laguna Woods are also substantially larger than the median household income in Laguna Woods and most of its census tracts, which is indicative of the nature of Laguna Woods as being a community mostly consisting of retired people. This information points to the absence of R/ECAPs in Laguna Woods, the surrounding jurisdictions of Aliso Viejo, Laguna Hills, Laguna Beach, and Lake Forest, and the region.

Table Z provides a breakdown of the percentage of White population and median household income (for all households and White households), which may be used as a determinant of areas of affluence, consistent with State guidance. This information is then used to determine whether there are any Racially Concentrated Areas of Affluence (RCAAs) within Laguna Woods and address whether there are any RCAAs in the region.

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 31
Table Z: White Median Household Income and Population
Orange
County
Laguna
Woods Aliso Viejo Laguna Hills Laguna Beach Lake Forest All Households Median
Household (HH) Income1 $90,234 $44,020 $112,689 $100,985 $129,983 $109,492 White Median HH
Income2 $94,082 $43,524 $113,104 $102,776 $132,063 $111,823 Black Median HH
Income3 $76,136 $48,750 $109,135 $191,845 - $101,250
Hispanic Median HH
Income4 $68,971 $24,250 $104,140 $77,107 $76,518 $83,002 Asian Median HH
Income5 $93,777 $54,440 $125,000 $90,337 $118,854 $112,048 Percent White
Population6 61.0% 76.3% 80.0% 70.9% 89.5% 65.9%
1 American Community Survey 2019 5-Year Estimates. Table S1901. 2 American Community Survey 2019 5-Year Estimates. Table B19013A. 3 American Community Survey 2019 5-Year Estimates. Table B19013B. 4 American Community Survey 2019 5-Year Estimates. Table B19013I. 5 American Community Survey 2019 5-Year Estimates. Table B19013D. 6 American Community Survey 2019 5-Year Estimates. Table DP05.

The median income of all households as well as White households in Laguna Woods is lower than the median income of all households and White households in Orange County. The 2015–2019 ACS 5-Year Estimates show that in Laguna Woods, the median household income for Hispanic residents is $24,250, for White residents is $43,524, for Black residents is $48,750, and for Asian residents is $54,440. Based on this information, Laguna Woods is not an area of affluence. Additionally, based on the information in Table Z related to household incomes of minority populations within the region, Aliso Viejo, Laguna Hills, Laguna Beach, and Lake Forest are areas of affluence due to their median household incomes being higher than Orange County and due to their high percentage of White population. Additionally, there are disparities in the income levels among the four cities’ minority groups, especially among all minorities versus the ethnically Hispanic population.

1.4.1.3 Access to Opportunities
HCD and the California Tax Credit Allocation Committee (TCAC) convened the California Fair Housing Task Force to provide research, evidence-based policy recommendations, and other strategic recommendations to HCD and other related State agencies/departments to further fair housing goals (as defined by HCD). The California Fair Housing Task Force has compiled data to identify resource levels across the State to accompany new policies aimed at increasing access to high opportunity areas for families with children in housing financed with 9 percent Low Income Housing Tax Credits (LIHTCs).

The data reflect composite scores of four different domains (environmental, economic, education, and poverty and racial segregation) which are made up of their own sets of indicators. Figure 6 in Exhibit C, Housing Sites Inventory, depicts the Laguna Woods census tracts and their TCAC Opportunity Area categorization based on their composite scores. Table AA shows the California Fair Housing Task Force Opportunity Map composite scores, domain scores, and categorization for all eight of the census tracts that are partially or entirely within Laguna Woods.

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 32
Table AA: Opportunity Map Scores and Categorization (2020) Census Tract Economic Domain
Score
Environmental
Domain Score
Education
Domain Score
Composite
Index Score Final Category
626.21 0.74 0.516 0.38 0.029 Moderate Resource
(Rapidly Changing)
626.22 0.005 0.542 0.203 -0.63 Low Resource
626.25 0.132 0.787 0.503 -0.064 Moderate Resource
626.41 0.598 0.821 0.442 0.144 Moderate Resource
(Rapidly Changing)
626.46 0.021 0.799 0.291 -0.423 Low Resource
626.47 0.127 0.511 0.343 -0.335 Low Resource
626.48 0.002 0.925 0.388 -0.439 Low Resource
626.49 0.34 0.882 0.7 0.283 High Resource
Source: California Fair Housing Task Force, TCAC/HCD Opportunity Maps, 2020 Statewide Summary Table.

The majority of the census tracts within Laguna Woods are categorized as Low Resource areas. There are three census tracts within Laguna Woods that are categorized as Moderate Resource areas (of these, two are “Rapidly Changing”) and one census tract (Census Tract 626.49) is categorized as a High Resource area. Census Tract 626.49 is located in the westernmost portion of Laguna Woods (west of Avenida Sosiega) adjacent to the Woods End Wilderness Preserve. Table AB takes an in-depth look at all census tracts that are not categorized as high resource areas.

Table AB: Low and Moderate TCAC Resource Level Census Tracts in Laguna Woods (2020) Census Tracts
626.21 626.22 626.25 626.41 626.46 626.47 626.48
TCAC Resource Level1
Moderate
(Rapidly
Changing)
Low Moderate
Moderate
(Rapidly
Changing)
Low Low Low
TCAC Economic Score1 0.74 0.005 0.132 0.598 0.021 0.127 0.002 TCAC Education Score1 0.38 0.203 0.503 0.442 0.291 0.343 0.388 TCAC Environmental
Score1 0.516 0.542 0.787 0.821 0.799 0.511 0.925
Race/Ethnicity2
White 61.5% 78.2% 64.1% 65.4% 72.9% 67.4% 75.6%
Black 1.6% 0.4% 0.3% 1.6% 2.9% 3.7% 0.0%
Asian/Pacific Islander 9.6% 19.0% 12.9% 18.1% 19.2% 17.3% 19.3% Some Other Race or Two
or More Races 7.2% 2.4% 22.8% 14.8% 5.0% 11.2% 5.0%
Hispanic (of any race) 7.9% 7.9% 32.5% 22.0% 7.0% 21.8% 4.2% % of Population in
Poverty3 7.7% 13.7% 12.4% 3.3% 10.6% 15.7% 12.9%
% of Population that is
Disabled4 7.2% 22.6% 14.1% 13.8% 25.4% 16.9% 26.4%
Total #/Type of Housing5 4,623 units 2,535 units 1,960 units 2,024 units 2,425 units 2,351 units 1,862 units Single Family Home 63.0% 21.7% 43.4% 61.2% 40.8% 33.5% 45.9%

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 33
Table AB: Low and Moderate TCAC Resource Level Census Tracts in Laguna Woods (2020) Census Tracts
626.21 626.22 626.25 626.41 626.46 626.47 626.48
TCAC Resource Level1
Moderate
(Rapidly
Changing)
Low Moderate
Moderate
(Rapidly
Changing)
Low Low Low
Multi-family Home 37.0% 71.4% 56.6% 38.8% 59.2% 66.5% 54.1% Age of Housing Stock6
< 30 yrs old 3,024 149 77 865 159 314 23
> 30 yrs old 1,935 2,670 2,006 1,356 2,544 2,315 2,088
% Owner/% Renter HH5 51.0% Owner

79.0% Renter

70.5% Owner

29.5% Renter

72.1%
Owner

27.9%
Renter

61.5%
Owner

38.5%
Renter

83.2%
Owner

16.8%
Renter

45.2%
Owner

54.8%
Renter

68.1%
Owner

31.9%
Renter
% HH with Burden7 36.4% 52.9% 46.1% 50.7% 38.3% 55.5% 48.8% 1 California Fair Housing Task Force, TCAC/HCD Opportunity Maps, 2020 Statewide Summary Table. 2 American Community Survey, 2019 5-Year Estimates. Table DP05 3 American Community Survey 2019 5-Year Estimates. Table S1701. 4 American Community Survey 2019 5-Year Estimates. Table S1810. 5 American Community Survey 2019 5-Year Estimates. Table S1101. 6 American Community Survey 2019 5-Year Estimates. Table B25034. 7 HUD AFFH Mapping and Data Tool. Map 6 – Housing Problems. Website: https://egis.hud.gov/affht/ (accessed May 6, 2022).

Seven of the eight census tracts in Laguna Woods have a moderate or low TCAC resource level. The surrounding cities of Aliso Viejo, Laguna Hills, Laguna Beach, and Lake Forest have comparatively higher TCAC resource levels than Laguna Woods.4

In order to assist with the long-term development of funding for major capital improvement projects to tackle the moderate to low resources in various parts of Laguna Woods, the City has adopted an 11-year Capital Improvement Program (CIP), which is updated and readopted on an annual basis.

Table AC contains a list of CIP projects that have been approved for the City for fiscal years 2023–2032 and the census tract(s) where they are located.

Table AC: CIP Projects in Laguna Woods
Fiscal Year Project Fund Name Funds Census Tract(s)
2023–2024
Pavement Management Plan
Project
Road Maintenance &
Rehabilitation Program Fund $309,800 626.46 and 626.41
Americans with Disabilities Act
(ADA) Pedestrian Accessibility
Improvement Project: Phase 7
Community Development
Grant (CDBG) Fund $150,000 Various
2024–2025
Pavement Management Plan
Project
Road Maintenance &
Rehabilitation Program Fund $270,600 626.46 and 626.41
Americans with Disabilities Act
(ADA) Pedestrian Accessibility
Improvement Project: Phase 8
CDBG Fund $150,000 Various
4 California Tax Credit Allocation Committee (TCAC). 2020 Opportunity Maps. Website: https://belonging. berkeley.edu/tcac-opportunity-map-2020 (accessed May 6, 2022).

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 34
Table AC: CIP Projects in Laguna Woods
Fiscal Year Project Fund Name Funds Census Tract(s)
2025–2026
Pavement Management Plan
Project
Road Maintenance &
Rehabilitation Program Fund $244,200 626.48 and 626.49
Americans with Disabilities Act
(ADA) Pedestrian Accessibility
Improvement Project: Phase 9
CDBG Fund $150,000 Various
2026–2027
Pavement Management Plan
Project
Road Maintenance &
Rehabilitation Program Fund $253,100 626.48 and 626.49
Americans with Disabilities Act
(ADA) Pedestrian Accessibility
Improvement Project: Phase 10
CDBG Fund $150,000 Various
2027–2028
Pavement Management Plan
Project
Road Maintenance &
Rehabilitation Program Fund $240,900 626.41 and 626.48
Americans with Disabilities Act
(ADA) Pedestrian Accessibility
Improvement Project: Phase 11
CDBG Fund $150,000 Various
2028–2029
Pavement Management Plan
Project
Road Maintenance &
Rehabilitation Program Fund $238,200 626.41 and 626.48
Americans with Disabilities Act
(ADA) Pedestrian Accessibility
Improvement Project: Phase 12
CDBG Fund $150,000 Various
2029–2030
Pavement Management Plan
Project
Road Maintenance &
Rehabilitation Program Fund $320,800 626.48
Americans with Disabilities Act
(ADA) Pedestrian Accessibility
Improvement Project: Phase 13
CDBG Fund $150,000 Various
2030–2031
Pavement Management Plan
Project
Road Maintenance &
Rehabilitation Program Fund TBD TBD
Americans with Disabilities Act
(ADA) Pedestrian Accessibility
Improvement Project: Phase 14
CDBG Fund $150,000 Various
2031–2032
Pavement Management Plan
Project
Road Maintenance &
Rehabilitation Program Fund TBD TBD
Americans with Disabilities Act
(ADA) Pedestrian Accessibility
Improvement Project: Phase 15
CDBG Fund $150,000 Various
Source: City of Laguna Woods Fiscal Years 2021-2023 Budget & Work Plan. Website: https://www.cityoflagunawoods.org/wp-content/ uploads/2021/06/2021-06-23-Adopted-Fiscal-Years-2021-23-Budget-Work-Plan-Website.pdf (accessed May 6, 2022).

Education. The Orange County AI details the various structural barriers to fair housing choice and access to opportunity for members of historically marginalized groups protected from discrimination by the federal Fair Housing Act (FHA). The Orange County AI uses the educational opportunity index, a value derived from data assembled by the California Fair Housing Task Force, to assess educational opportunity. The following disparities in access to education exist in Orange County:

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 35

1. Across all census tracts in Orange County, non-Hispanic Whites enjoy the best access to educational opportunity (index score of about 59) and non-Hispanic Asians have the secondhighest access to educational opportunity (index score of 53). Hispanics have the lowest access to these opportunities (index score of 31), with non-Hispanic Blacks in between (index score of 46).

2. The cities of Aliso Viejo, Huntington Beach, Irvine, Laguna Niguel, La Palma, Mission Viejo, and Rancho Santa Margarita score highly (index score of 60 or above) on educational opportunity across all racial categories.

3. San Juan Capistrano has relatively low access to educational opportunity, scoring below 10 on the index for all racial categories. San Clemente, Anaheim, and Santa Ana fare similarly poorly, although non-Hispanic Whites score higher (index score of 39) than other race/ethnic groups in Santa Ana. Buena Park, Costa Mesa, Garden Grove, Orange, La Habra, and Westminster are other cities that struggle with educational opportunity, all with scores in the 30s to 40s on the composite education index.

4. A few cities have educational opportunity patterns that mirror those of Orange County overall.

Non-Hispanic Whites in Fountain Valley enjoy good access to educational opportunity (index scores of about 60), whereas Hispanics in the city do not (index score of about 30). In both Fullerton and Tustin, non-Hispanic Whites and Asians have much better access to educational opportunity than Blacks and Hispanics.

The census tracts in Laguna Woods score relatively low in terms of access to educational opportunity, with indices ranging from 20 to 50. These low scores may reflect the nature of the city as one in which most of its residents live in retirement communities. The lowest educational opportunity scores are in Census Tract 626.22 (20) and the highest educational opportunity scores are in Census Tract 626.25 (50). Census Tract 626.22 is located in the northeastern portion of Laguna Woods.

Further, as shown in the Southern California Association of Governments (SCAG) Local Profiles 2021 dataset, none of the City’s residents were enrolled in public school from 2000 to 2020; therefore, Laguna Woods has not seen a change in public school enrollment since 2000.5 These data reflect the City’s status as a community mostly consisting of retired people. Laguna Woods does not have its own school district; it is served by the Laguna Beach Unified School District, Saddleback Valley Unified School District, and Capistrano Unified School District. Table AD below summarizes the demographic characteristics of the three school districts according to the California Department of Education’s School Dashboard website.

Table AD: School Districts Serving Laguna Woods
Laguna Beach Unified
School District1
Saddleback Valley Unified
School District2
Capistrano Unified School
District3
Race/Ethnicity
White 71.5% 40.4% 54.1%
5 Southern California Association of Governments (SCAG). 2021 Local Profiles Dataset. Website:
https://scag.ca.gov/sites/main/files/file-attachments/2021_local_profiles_dataset.xlsx (accessed May 9, 2022).

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 36
Table AD: School Districts Serving Laguna Woods
Laguna Beach Unified
School District1
Saddleback Valley Unified
School District2
Capistrano Unified School
District3
Asian 4.9% 8.7% 6.6%
Two or More Races 8.2% 7.4% 6.6%
Hispanic 12.0% 37.3% 27.1%
Filipino 1% 3.5% 1.8%
African American 0.9% 1.2% 0.8%
English Learners 2.4% 17.8% 9.6%
Homeless 0.3% 5.0% 5.8%
Socioeconomically
Disadvantaged 12.0% 30.2% 25.4%
Students with Disabilities 11.1% 12.9% 12.2%
Graduation Rate4 97.9% 89.3% 96.8% 1 California Department of Education. California School Dashboard. Website: https://www.caschooldashboard.org/reports/ 30665550000000/2021 (accessed May 9, 2022). 2 California Department of Education. California School Dashboard. Website: https://www.caschooldashboard.org/reports/ 30736350000000/2021 (accessed May 9, 2022). 3 California Department of Education. California School Dashboard. Website: https://www.caschooldashboard.org/reports/ 30664640000000/2021 (accessed May 9, 2022). 4 California Department of Education. Dashboard Additional Report – Graduation Rate. Website: https://www6.cde.ca.gov/ californiamodel/gradreport?&year=2021&cdcode=3066555&scode=&reporttype=schools (accessed May 9, 2022).

According to the California Department of Education, the statewide graduation rate is 86.8 percent.

As shown in Table AD, the Laguna Beach Unified School District, Saddleback Valley School District, and Capistrano Unified School District all have graduation rates that exceed the statewide graduation rate.

Economic. The Orange County AI uses the Educational Opportunity index, a value derived from data assembled by the California Fair Housing Task Force, to assess economic opportunity. The following disparities in access to economic opportunity exist in Orange County:

1. Non-Hispanic White residents have the greatest access to economic opportunity. Asian and Pacific Islander residents (index score of 49), Native Americans (index score of 46), and Black residents (index score of 46) have lower index scores in the high to mid-40s. Hispanic residents (index score of 32) have the lowest access to economic opportunity of all racial and ethnic groups in Orange County.

2. Among residents living below the poverty line, White residents have the highest economic opportunity score (index score of 30) followed by Black residents (index score of 27) and Asian Americans and Pacific Islanders (index scores of 23). Low-income Native Americans and Hispanic residents have the lowest economic opportunity scores (index scores of 19).

3. There are major disparities in economic opportunity scores across racial/ethnic groups in cities in Orange County.

4. Economic opportunity index scores are generally lower in North Orange County than in South Orange County. Scores are especially low in Westminster, Garden Grove, and much of Santa Ana and Anaheim. Scores are generally high in much of Irvine, La Palma, and Tustin and along the coast

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 37
from Newport Beach to Laguna Niguel as well as in unincorporated areas near the eastern border with Riverside County.

5. Areas in Orange County with the highest index scores tend to have large concentrations of nonHispanic and Asian residents. By contrast, areas with the highest concentration of Hispanic residents tend to have lower economic opportunity index scores.

The census tracts in Laguna Woods have varied scores in economic opportunity, with indices ranging from 0.2 to 75. The census tracts with the lowest economic opportunity indices are Census Tract 626.22 (index score of 0.5), 626.25 (index score of 13.2), 626.46 (index score of 2.1), 626.47 (index score of 12.7), and 626.48 (index score of 0.2). These census tracts are located mostly in the eastern and southeastern portions of Laguna Woods and have resource levels of “Low” or “Moderate.” According to the Orange County AI, the economic opportunity index is a composite of four indicators depicting elements of neighborhood socio-economic character. These indicators are poverty, adult education, employment, and proximity to jobs. The SCAG 2019 Local Profiles indicate that the total number of jobs in Laguna Woods numbered 5,491, which is a 3.7 percent decrease from 2007.6 The report also stated that the mean travel time to work for Laguna Woods was 26 minutes, whereas the mean travel time to work for Orange County as a whole was 27.9 minutes. According to the HUD AFFH Data Viewer, Laguna Woods has a lower labor market index than the surrounding communities including Aliso Viejo, Laguna Beach, Laguna Hills, and Lake Forest. Census Tract 626.46 has the lowest labor market index, with a score of 28.7 Laguna Woods is similar to cities in central and northern Orange County, like Santa Ana, Garden Grove, and Westminster, which all have lower labor market engagement than cities in southern Orange County. Much of the low labor market indices in Laguna Woods are due to the City’s status as a community mostly consisting of retired people.

Transportation. According to the Orange County AI, the following disparities in access to low-cost transportation exist in Orange County:

1. Non-Hispanic Whites have the lowest scores (index score of 34). Asians and Pacific Islanders as well as Native Americans have an index score of 38. Black residents have a score of 39, while Hispanic residents have the highest score (index score of 42).

2. Regionally, low transportation cost index scores are similar for all racial and ethnic groups. NonHispanic Whites and Native Americans both have a score of 19, Asians/Pacific Islanders as well as Hispanics have a score of 20, and Black residents have a score of 21.

3. Low transportation cost index scores as well as transit index scores are generally higher in North Orange County than in South Orange County. Scores are generally higher in cities with greater 6 SCAG. Local Profiles Report 2019. Website: https://scag.ca.gov/sites/main/files/file-attachments/laguna woods_localprofile.pdf?1606012702 (accessed May 9, 2022). 7 HUD AFFH Mapping and Data Tool – Map 9 Demographics and Labor Market. Website: https://egis.hud. gov/affht/ (accessed May 9, 2022).

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 38
levels of density. Generally, North Orange County cities have a variety of residential living patterns with varying levels of density.

While the percentage of Laguna Woods residents using transit to commute to work has increased by 67 percent (0.9 percent in 2000 to 1.5 percent in 2019), Laguna Woods still has a relatively low percentage of residents that commute via public transit. The number of residents who commute to work via bicycle or walking has decreased by 57 percent from the year 2000 to 2018.

AllTransit is a database created by the Center for Neighborhood Technology to explore metrics that reveal the social and economic impact of transit, specifically looking at connectivity, access to jobs, and frequency of service. AllTransit’s overall evaluation was that Laguna Woods had a low combination of trips per week and number of accessible jobs, enabling few people to take transit to work. Specifically, while the vast majority of jobs within Laguna Woods are located within 0.5 mile of transit and Laguna Woods residents can access over 90,000 jobs within a 30-minute transit commute, the transit quality within Laguna Woods is low. There are only four transit routes within Laguna Woods, and none of them offer high-frequency service as defined by AllTransit, making commuting by means of public transportation difficult.

Environmental. The Orange County AI uses the environmental opportunity index, a value derived from indicators from the exposures and environmental effects subcomponents of the “pollution burden” domain of CalEnviroScreen 3.0, to assess environmental opportunity. The following disparities in access to environmental opportunity exist in Orange County:

1. Across all tracts in Orange County, non-Hispanic Whites exhibit the highest access to environmentally healthy neighborhoods (index score of about 54). All other racial/ethnic groups obtain lower index scores in the 40s: Hispanics score lowest at 41, followed by non-Hispanic Blacks (index score of 45), non-Hispanic Asian/Pacific Islander (index score of 47), and non-Hispanic Native Americans (index score of 48).

2. Jurisdictions with the highest environmental opportunity appear to have primarily large concentrations of non-Hispanic Whites and Asian/Pacific Islanders. Lower-scoring cities exhibit a diversity of residential patterns.

The California Office of Environmental Health Hazard Assessment (OEHHA) developed a screening methodology to help identify California communities disproportionately burdened by multiple sources of pollution, called the California Communities Environmental Health Screening Tool (CalEnviroScreen). High-scoring communities tend to be more burdened by pollution from multiple sources and most vulnerable to its effects, taking into account their socioeconomic characteristics and underlying health status. Scores for census tracts within Laguna Woods are listed in Table AE. Scores for Laguna Woods range between 4.81 and 28.08, which are relatively low. The highest-scoring area within Laguna Woods is the census tract on the southeast side of Laguna Woods near Interstate 5 (Census Tract 626.47).

Table AE: CalEnviroScreen Scores by Census Tract (2020) Census Tract CalEnviroScreen Score CalEnviroScreen Percentile 626.21 6.37 21

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 39
626.22 15.18 37
626.25 12.47 37
626.41 4.81 18
626.46 18.9 44
626.47 28.08 54
626.48 10.56 32
626.49 6.30 22
Source: CA Office of Environmental Health Hazard Assessment (OEHHA), CalEnviroScreen 4.0 Draft.

1.4.1.4 Assessment of Contributing Factors to Fair Housing in Laguna Woods As described in Exhibit B, Constraints Analysis, the cumulative effect of the City’s residential development standards does not constrain the expansion of housing opportunities. Density standards are consistent with the densities established for General Plan land use categories, and setback requirements provide minimal light and air for development, are typical in the region, and do not unreasonably constrain housing opportunities.

Further, the City encourages the development of affordable housing through Section 13.26.040 of the City’s Zoning Code, which provides for residential density bonuses to incentivize the production of housing for very low-income, lower-income, or senior households in accordance with Government Code Sections 65915 and 65917.

The City has also identified adequate sites to be made available through appropriate zoning and development standards to encourage the development of various types of housing for all economic segments of the population, including single-family housing, multifamily housing, senior housing, manufactured housing and mobile homes, accessory dwelling units, residential care facilities for persons with developmental disabilities, and single-room occupancy facilities. Additionally, with the adoption of the updated Housing Element, a program to amend the Zoning Code to include one or more mixed-use overlay zoning districts that would allow the development of commercial and residential uses on the same parcel would also be put into effect.

The City has not adopted unique restrictions that constrain the development of housing for persons with disabilities nor has it adopted regulations inconsistent with applicable federal or state law. There are no City-initiated constraints on housing for persons with disabilities caused or controlled by the City. In addition, the City has adopted formalized criteria and processing procedures for reasonable accommodation applications within its Zoning Code.

As described in Exhibit A Housing Needs Assessment, and as defined by the RHNA process, Laguna Woods’ new construction need for the 2021 to 2029 planning period has been established at 997 new units. The City will continue to zone sites for housing supported by a variety of programs to enhance affordability, to accommodate its RHNA and contribute toward addressing the growing demand for housing in the Southern California region.

Given that the City does not have prohibitive residential development standards or unique restrictions constraining development of housing for persons with disabilities and also encourages the development of affordable housing as well as various housing typologies, the City experiences the following local contributing factors to fair housing:

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 40
• Displacement Risk – As described in Section 1.3.7.3, Displacement and Disproportionate Housing Needs, some parts of Laguna Woods are either susceptible to displacement or experiencing ongoing displacement as well as at risk of job displacement according to the Urban Displacement Project’s Gentrification and Displacement Map. The same parts of Laguna Woods which are susceptible to displacement (Census Tracts 626.46 and 626.47) are also the areas in Laguna Woods with the highest renter vulnerability indices.
• Development Costs and Low Land Availability – As described in Exhibit B, Constraints Analysis, the availability and price of land represents a significant market constraint to housing production in Laguna Woods, where there is very little residentially designated vacant land. In June 2021, based on a survey of online real estate listings, there were no vacant properties listed for sale within Laguna Woods. Due to limited land availability, most new residential development in Laguna Woods will involve redeveloping properties with existing uses, which tends to add to the cost of land. Further, density bonuses are available for projects that include affordable housing in Laguna Woods. Developers of affordable housing may also be granted regulatory concessions or development incentives. Density bonuses, together with the incentives and/or concessions, result in a lower average cost of land per dwelling unit thereby making the provision of affordable housing more feasible.

1.4.1.5 City Actions
This Housing Element includes AFFH as one of four priority issues. In addition to the goal, policy objectives, and programs included under the AFFH priority issue, other programs included under other priority issues relate to AFFH. Table AF correlates each AFFH-related program with a fair housing issue using the categories of examples of AFFH actions provided in HCD’s AFFH guidance memorandum dated April 2021. Table AG identifies the contributing factor(s) resulting in each program’s inclusion, as well as a priority assigned based on the extent to which factors limit or deny fair housing choice or access to opportunity or negatively impact fair housing or civil rights.

Table AF: Alignment of AFFH Programs with HCD Guidance
Housing Element Program Type of AFFH Action / Fair Housing Issue Program H-1.2.3. Conduct a market study and then amend the existing inclusionary housing ordinance to modify the minimum percentages of new housing units that must be deed-restricted for extremely low, very low, and low-income households, as feasible and advantageous to promote the development of affordable housing.

Promoting Housing Supply, Choices, and
Affordability
Program H-2.1.2. Investigate potential incentives for property owners to extend existing affordability covenants beyond the planned expiration date. If feasible and economical, adopt such incentives.

Protect Existing Residents from Displacement
Program H-2.2.2. Adopt an ordinance waiving or reducing City building permit fees for improvements to the home of a person at least 60 years of age with a qualifying disability that are made to accommodate that disability, as provided for by California Health and Safety Code Section 17951.7. Consider including provisions allowing for similar building permit fee waivers or reductions for improvements to the home of a person with a qualifying disability Promoting Housing Supply, Choices, and
Affordability

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 41
Table AF: Alignment of AFFH Programs with HCD Guidance
Housing Element Program Type of AFFH Action / Fair Housing Issue that are made to accommodate that disability, regardless of age.

Prepare and maintain a flyer with related information.

Program H-2.2.3. Provide opportunities for reimbursements, grants, or other forms of financial assistance to support home improvements that increase accessibility or functionality for persons with special needs.

Promoting Housing Supply, Choices, and
Affordability
Program H-2.3.1. Formalize a proactive code enforcement program that focuses on housing-related rehabilitation needs, results in repairs, and seeks to mitigate potential cost, displacement, and relocation impacts on residents.

Place-based Strategies to Encourage Community
Conservation and Revitalization
Program H-3.1.1. Improve pedestrian accessibility on sidewalks, curb ramps, crosswalks, and other public property connecting housing with transit stops, public buildings, businesses, and educational institutions. Prioritize improvements based on factors including: ● The California Office of Environmental Health Hazard Assessment’s California Communities Environmental Health Screening Tool (“CalEnviroScreen”) scores for individual census tracts, with an emphasis on undertaking improvements in and around Census Tract 626.47 due to its comparatively higher CalEnviroScreen score, as feasible and economical; and ● Education domain scores from the California Tax Credit Allocation Committee (“TCAC”)/HCD Opportunity Map, with an emphasis on undertaking improvements in and around Census Tract 626.22 due to its comparatively lower scores, as feasible and economical.

Housing Mobility
Program H-3.1.2. Pursue partnerships and seek funding to provide Laguna Woods-based housing mobility counseling services. If feasible and economical, implement such services.

Housing Mobility
Program H-3.1.3. Adopt an ordinance waiving or reducing City building permit fees, or providing other incentives, for housing projects that prepare and implement an affirmative marketing plan designed to attract renters or buyers of diverse demographics, including persons of any race, color, religion, sex, handicap, familial status, or national origin. Prioritize incentives based on factors including racial concentrations from U.S. Census Bureau data products, with an emphasis on avoiding the creation of
geographically discernable patterns of segregation or racially concentrated areas of poverty.

Housing Mobility
Program H-3.2.1. Prepare and maintain a webpage with
information on housing mediation, foreclosure assistance, and multilingual tenant legal counseling services. Train City staff to make referrals using the webpage.

Protect Existing Residents from Displacement
Program H-3.2.2. Pursue partnerships and seek funding to provide Laguna Woods-based housing mediation, foreclosure assistance, and multilingual tenant legal counseling services. If feasible and economical, implement such services.

Protect Existing Residents from Displacement
Program H-3.2.3. Investigate potential hazard mitigation measures that would reduce or eliminate the long-term risk of residential displacement as a result of future disasters. If feasible and economical, implement such hazard mitigation measures. Prioritize improvements based on factors including economic domain scores from the TCAC/HCD Opportunity Map for individual census tracts, with an emphasis on undertaking improvements in and around Protect Existing Residents from Displacement

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 42
Table AF: Alignment of AFFH Programs with HCD Guidance
Housing Element Program Type of AFFH Action / Fair Housing Issue census tracts 626.22 and 626.48 due to their comparatively lower scores, as feasible and economical.

Table AG: Contributing Factors for AFFH Programs Matrix Housing Element Program Contributing Factor(s) Priority Program H-1.2.3. Conduct a market study and then amend
the existing inclusionary housing ordinance to modify the minimum percentages of new housing units that must be
deed-restricted for extremely low, very low, and low-income households, as feasible and advantageous to promote the development of affordable housing.

Need for affordable housing
options based on housing needs
allocation and housing needs
assessment
High
Program H-2.1.2. Investigate potential incentives for
property owners to extend existing affordability covenants beyond the planned expiration date. If feasible and
economical, adopt such incentives.

Displacement risk for existing
lower-income residents due to
economic pressures/motivators
on property owners/managers
(see also Section 1.3.7.3)
High
Program H-2.2.2. Adopt an ordinance waiving or reducing City building permit fees for improvements to the home of a person at least 60 years of age with a qualifying disability that are made to accommodate that disability, as provided for by California Health and Safety Code Section 17951.7.

Consider including provisions allowing for similar building permit fee waivers or reductions for improvements to the home of a person with a qualifying disability that are made to accommodate that disability, regardless of age. Prepare and maintain a flyer with related information.

Access to opportunities for
persons with disabilities due to
underimproved housing stock
potentially resultant of financial
or physical challenges
Medium
Program H-2.2.3. Provide opportunities for reimbursements, grants, or other forms of financial assistance to support home improvements that increase accessibility or
functionality for persons with special needs.

Access to opportunities for
persons with special needs due
to underimproved housing stock
potentially resultant of financial
or physical challenges
Medium
Program H-2.3.1. Formalize a proactive code enforcement program that focuses on housing-related rehabilitation
needs, results in repairs, and seeks to mitigate potential cost, displacement, and relocation impacts on residents.

Age of housing stock; intent to
help promote the existing good
condition and upkeep of housing
stock
Medium
Program H-3.1.1. Improve pedestrian accessibility on
sidewalks, curb ramps, crosswalks, and other public property connecting housing with transit stops, public buildings, businesses, and educational institutions. Prioritize
improvements based on factors including: ● The California Office of Environmental Health Hazard Assessment’s
California Communities Environmental Health Screening Tool (“CalEnviroScreen”) scores for individual census tracts, with an emphasis on undertaking improvements in and around
Census Tract 626.47 due to its comparatively higher
CalEnviroScreen score, as feasible and economical; and ● Education domain scores from the California Tax Credit
Allocation Committee (“TCAC”)/HCD Opportunity Map, with an emphasis on undertaking improvements in and around
Census Tract 626.22 due to its comparatively lower scores, as feasible and economical.

Useful life of improvements;
evolving needs based on the
nature of connecting uses and
pedestrian behavior.

PROPOSED
Medium
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 43
Table AG: Contributing Factors for AFFH Programs Matrix Housing Element Program Contributing Factor(s) Priority Program H-3.1.2. Pursue partnerships and seek funding to provide Laguna Woods-based housing mobility counseling
services. If feasible and economical, implement such
services.

Existing age and income
restrictions; changing financial
circumstances due to age,
employment status, and
economic pressures.

Medium
Program H-3.1.3. Adopt an ordinance waiving or reducing City building permit fees, or providing other incentives, for housing projects that prepare and implement an affirmative marketing plan designed to attract renters or buyers of diverse demographics, including persons of any race, color, religion, sex, handicap, familial status, or national origin.

Prioritize incentives based on factors including racial concentrations from U.S. Census Bureau data products, with an emphasis on avoiding the creation of geographically
discernable patterns of segregation or racially concentrated areas of poverty.

Need for affordable housing
options based on housing needs
allocation and housing needs
assessment; existing age and
income restrictions.

High
Program H-3.2.1. Prepare and maintain a webpage with
information on housing mediation, foreclosure assistance, and multilingual tenant legal counseling services. Train City staff to make referrals using the webpage.

Displacement risk for existing
lower-income residents due to
economic pressures/motivators
on property owners/managers
(see also Section 1.3.7.3);
changing financial circumstances
due to age, employment status,
and economic pressures.

Medium
Program H-3.2.2. Pursue partnerships and seek funding to provide Laguna Woods-based housing mediation,
foreclosure assistance, and multilingual tenant legal
counseling services. If feasible and economical, implement such services.

Displacement risk for existing
lower-income residents due to
economic pressures/motivators
on property owners/managers
(see also Section 1.3.7.3);
changing financial circumstances
due to age, employment status,
and economic pressures.

Medium
Program H-3.2.3. Investigate potential hazard mitigation measures that would reduce or eliminate the long-term risk of residential displacement as a result of future disasters. If feasible and economical, implement such hazard mitigation measures. Prioritize improvements based on factors
including economic domain scores from the TCAC/HCD
Opportunity Map for individual census tracts, with an
emphasis on undertaking improvements in and around
census tracts 626.22 and 626.48 due to their comparatively lower scores, as feasible and economical.

Displacement risk for existing
residents due to disaster-related
damage (see also Section

1.3.7.3); age of housing stock.

High

1.5 REGIONAL HOUSING NEEDS
State law requires all regional councils of governments to determine the existing and projected housing need for its region and determine the portion allocated to each jurisdiction. This is known as the RHNA process. State Housing Element law requires that each city and county develop local housing programs to meet its “fair share” of existing and future housing needs for all income groups, as determined by the jurisdiction’s Council of Governments. This fair-share allocation concept seeks to

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 44
ensure that each jurisdiction accepts responsibility for the housing needs not only of its resident population but also for the jurisdiction’s projected share of regional housing growth across all income categories. Regional growth needs are defined as the number of units that would have to be added in each jurisdiction to accommodate the forecasted number of households, as well as the number of units that would have to be added to compensate for anticipated demolitions and changes to achieve an “ideal” vacancy rate.

In the six-county Southern California region, which includes Laguna Woods, the agency responsible for assigning these regional housing needs to each jurisdiction is SCAG. The regional growth allocation process begins with the California Department of Finance’s projection of statewide housing demand for a 5-year planning period, which is then apportioned by HCD among each of the State’s official regions. SCAG has determined the projected housing need for its region for the 2021 to 2029 Housing Element cycle and has allocated this housing need to each jurisdiction by income category through the RHNA process. The RHNA represents the minimum number of housing units each community is required to provide “adequate sites” for through zoning, and is one of the primary threshold criteria necessary to achieve HCD certification of the Housing Element.

In allocating the region’s future housing needs to jurisdictions, SCAG is required to take the following factors into consideration:
• Market demand for housing
• Employment opportunities
• Availability of suitable sites and public facilities
• Commuting patterns
• Type and tenure of housing
• Loss of units in assisted housing developments
• Overconcentration of lower-income households
• Geological and topographical constraints
As defined by the RHNA process, Laguna Woods’ new construction need for the 2021 to 2029 planning period has been established at 997 new units, distributed among the four income categories as shown in Table AH. Of the 127 Very Low Income units included in the City’s RHNA, approximately 50 percent (or 63 units) should be made available to Extremely Low Income households. The City will continue to provide sites for a mix of single-family, multifamily, and mixed-use housing, supported by a variety of programs to enhance affordability, to accommodate its RHNA and contribute toward addressing the growing demand for housing in the Southern California region.

Table AH: Regional Housing Needs Assessment, 2021–2029
Income Level Number of Units Percent of Total RHNA
Very Low* (<50% of AMI) 127 12.7%
Low (50-80% of AMI) 136 13.6%
Moderate (80-120% of AMI) 192 19.3%
Above Moderate (>120% of AMI) 542 54.4%
Total 997 100%

PROPOSED
MARCH 2023 H OUSING NEEDS ASSESSMENT

L AGUNA WOODS , C ALIFORNIA
Exhibit A - 45
* Based on current household income data presented in Table G, the City estimates that 63 (or approximately 50 percent) of the 127 units included in its Very Low Income allocation should be made available to Extremely Low Income households.

AMI = Annual Median Income

PROPOSED

H OUSING NEEDS ASSESSMENT
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit A - 46
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PROPOSED
March 2023

EXHIBIT B

CONSTRAINTS ANALYSIS

CITY OF LAGUNA WOODS

PROPOSED
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PROPOSED
March 2023

CONSTRAINTS ANALYSIS

CITY OF LAGUNA WOODS
Submitted to:

City of Laguna Woods
24264 El Toro Road
Laguna Woods, California 92637
Prepared by:

LSA
20 Executive Park, Suite 200
Irvine, California 92614
(949) 553-0666

PROPOSED
Project No. LWD2101
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PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - i

TABLE OF CONTENTS
Table of Contents.................................................................................................................................... i FIGURES AND TABLES ............................................................................................................................. ii List of Abbreviations and acronyms...................................................................................................... iii

1.0 HOUSING CONSTRAINTS...................................................................................... 1

2.0 GOVERNMENTAL CONSTRAINTS.......................................................................... 3

2.1 Land Use Controls ................................................................................................................ 3

2.2 Residential Development Standards.................................................................................... 7

2.2.1 Affordable Housing Density Bonus........................................................................................ 8

2.2.2 Small-Lot Development ......................................................................................................... 9

2.2.3 Special-Purpose Zoning Districts ........................................................................................... 9

2.3 Provision for a Variety of Housing Types............................................................................. 9

2.3.1 Single-Family Housing............................................................................................................ 9

2.3.2 Multifamily Housing .............................................................................................................. 9

2.3.3 Live/Work Units...................................................................................................................10

2.3.4 Senior Housing.....................................................................................................................10

2.3.5 Manufactured Housing and Mobile Homes ........................................................................11

2.3.6 Accessory Dwelling Units.....................................................................................................11

2.3.7 Residential Care Facilities....................................................................................................12

2.3.8 Single Room Occupancy ......................................................................................................13

2.3.9 Emergency Shelters and Low Barrier Navigation Centers...................................................13

2.3.10 Transitional Housing and Supportive Housing.....................................................................16

2.3.11 Employee Housing ...............................................................................................................17

2.4 Housing for Persons with Disabilities................................................................................. 17

2.4.1 Zoning and Land Use ...........................................................................................................18

2.4.2 Building Codes.....................................................................................................................20

2.4.3 Conclusion ...........................................................................................................................21

2.5 Site Improvements............................................................................................................. 21

2.6 Planning/Zoning and Development Impact Fees............................................................... 22

2.7 Local Processing and Permit Procedures........................................................................... 26

2.7.1 Site Development Permit ....................................................................................................27

2.7.2 Conditional Use Permit........................................................................................................28

2.8 Building Codes.................................................................................................................... 29

2.9 Federal and State Regulations ........................................................................................... 30

2.9.1 State Prevailing Wage Requirements..................................................................................30

2.9.2 Environmental Protection ...................................................................................................30

2.9.3 State Transparency Requirements ......................................................................................31

3.0 MARKET CONSTRAINTS ..................................................................................... 33

3.1 Availability of Financing ..................................................................................................... 33

3.2 Foreclosures....................................................................................................................... 33

3.3 Development Costs............................................................................................................ 34

3.3.1 Land Availability and Cost....................................................................................................34

3.3.2 Cost of Construction............................................................................................................34

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - ii

4.0 INFRASTRUCTURE CONSTRAINTS ....................................................................... 37

4.1 Water..................................................................................................................................37

4.2 Wastewater ........................................................................................................................37

4.3 Transportation Infrastructure.............................................................................................38

5.0 ENVIRONMENTAL CONSTRAINTS ....................................................................... 41

5.1 Flooding ..............................................................................................................................41

5.2 Seismic and Geologic Hazards ............................................................................................41

5.3 Wildfires..............................................................................................................................42

5.4 Noise...................................................................................................................................42 FIGURE
Figure 1: Zoning Map ..............................................................................................................................5 TABLES
Table A: Residential Land Use Designations...........................................................................................3 Table B: Residential Development Standards.........................................................................................7 Table C: Residential Parking Requirements............................................................................................8 Table D: Housing Types Per Zoning Code .............................................................................................10 Table E: Development Standards for the Community Facilities Zoning Districts................................. 14 Table F: Current Residential Planning/Zoning Fees..............................................................................22 Table G: Comparison of Residential Planning/Zoning Fees..................................................................23 Table H: Prototypical Multi-Family Residential Project Planning/Zoning and Development Impact Fees..................................................................................................................................25 Table I: Prototypical Single-Family Home Project Planning/Zoning and Development Impact Fees..............................................................................................................................................25 Table J: Typical Permit Processing Timelines........................................................................................27 Table K: Disposition of Home Purchase and Improvement Loan Applications (2019).........................33 Table L: San Joaquin Hills Transportation Corridor Development Impact Fees (2022)

PROPOSED
........................39
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - iii

LIST OF ABBREVIATIONS AND ACRONYMS
AB Assembly Bill
ADA Americans with Disabilities Act
ADU accessory dwelling unit
CAL FIRE California Department of Forestry and Fire Protection CBC California Building Code
CC Community Commercial
CEQA California Environmental Quality Act
CF-P Community Facilities—Private
CF-PI Community Facilities—Public/Institutional
CIP Capital Improvement Program
City City of Laguna Woods
CUP Conditional Use Permit
ETWD El Toro Water District
FAR floor area ratio
FEMA Federal Emergency Management Agency
FIRM Flood Insurance Rate Maps
ft foot/feet
HCD Housing and Community Development Department of the State of California HMDA Home Mortgage Disclosure Act
I-5 Interstate 5
Lanterman Act Lanterman Developmental Disabilities Services Act MWD Metropolitan Water District
OCFA Orange County Fire Authority
OCTA Orange County Transportation Authority
RC Residential Community
RT Residential Towers
SB Senate Bill
SDP Site Development Permit
sf square foot/feet

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - iv
SJHTCA San Joaquin Hills Transportation Corridor Agency SRO Single Room Occupancy
UWMP Urban Water Management Plan
WRP Water Recycling Plant
WTP Wastewater Treatment Plant

PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 1

1.0 HOUSING CONSTRAINTS
The City of Laguna Woods’ (City) Housing Element seeks to ensure the provision of adequate housing to meet the existing and projected needs of all economic segments of the community.

Many factors, including market mechanisms, government regulations and policies, and infrastructure and environmental constraints, can constrain the development, maintenance, and improvement of housing. This Constraints Analysis addresses the potential and actual governmental constraints upon the development, maintenance, or improvement of housing that may affect the supply and cost of housing in Laguna Woods, as required by Government Code Section 65583(a).1

1 California Department of Housing and Community Development. 2021. Codes and Enforcement of Onsite/ Offsite Improvement Standards. Website: https://www.hcd.ca.gov/community-development/buildingblocks/constraints/codes-and-enforcement-on-offsite-improvement-standards.shtml (accessed June 11, 2021).

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 2
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PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 3

2.0 GOVERNMENTAL CONSTRAINTS
Actions or policies of governmental agencies, whether involved directly or indirectly in the housing market, can impact the ability of the development community to provide adequate housing to meet consumer demands. For example, the impact of federal monetary policies and the budgeting and funding policies of governmental agencies can either stimulate or depress various aspects of the housing industry. State and local government compliance, and the enactment of sanctions for noncompliance, with federal laws may also have an impact on the housing industry.

State and local government compliance with State laws can complicate the development of housing.

Statutes such as the California Environmental Quality Act (CEQA) and rezoning and General Plan amendment procedures required by the Government Code can prolong the review and approval of development proposals by local governments. In many instances, compliance with such mandates includes time constraints that cannot be altered by local governments.

City policies can also impact the price and availability of housing. Land use controls, site improvement requirements, building codes, fees, and other local programs to improve the overall quality of housing may serve as constraints to housing development.

2.1 LAND USE CONTROLS
The City’s General Plan and Zoning Code provide for a range of residential land use designations and zoning districts. The City’s Zoning Map is included as Figure 1. Land use designations that allow for residential development are presented in Table A.

Table A: Residential Land Use Designations
General Plan Land Use Designation Max. Density Description Low Density Residential <10 du/ac Includes all dwelling units equipped for independent living (i.e., kitchen, bathroom, and
sleeping quarters). Facilities intended for transient
living, such as hotels and motels and hospitals and
skilled nursing units, are not typically included.

Medium Density Residential 10–12 du/ac
High Density Residential 13–35 du/ac
Residential Community
<10 du/ac
or
10-12 du/ac
depending on
location
Encompasses nearly all of the Laguna Woods
Village planned residential community with the
exception of Rossmoor Towers. Integrates a mix of
single-family detached, single-family attached, two
family, and multi-family residential, with supporting
country clubs, parks, community services, localserving noncommercial services, and open spaces.

Common areas are managed by private nonprofit
community associations.

Source: Land Use Element (City of Laguna Woods 2017).
du/ac= dwelling unit(s) per acre
max. = maximum

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 4
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PROPOSED
SOURCE: City of Laguna Woods
MILES
0 .25 .5
FIGURE 1
I:\LWD2101\G\Zoning_Map.ai (6/10/2021)
Laguna Woods Constraints Analysis
Zoning Map

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 6
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PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 7

2.2 RESIDENTIAL DEVELOPMENT STANDARDS
The City’s Zoning Code contains development standards for each zoning district consistent with the land use designations of the General Plan. The Zoning Code establishes development standards for each zoning district to ensure quality development and reduce the potential for land use conflicts.

Residential development standards are summarized in Table B.

Table B: Residential Development Standards
Development Standard Residential Multifamily
(RMF)
Residential Community
(RC)
Residential Towers
(RT)
Maximum Building Height (ft) 65 40 None
Minimum Building Site Area (sf) 7,200 None None
Minimum Area per Unit (sf) 1,0001 None2 None2
Minimum Setback (ft)
Front Yard 20 None3 None
Side Yard from ROW 5 None3 None
Rear Yard from ROW 25 None3 None
Side Yard not abutting ROW 5 None3 None
Rear Yard not abutting ROW 254 None3 None
Distance between Principal Structures
(ft) 10 None3 None
Maximum Building Site Coverage 50% 50%5 None2
Source: Zoning Ordinance (City of Laguna Woods 2020).
1 The minimum per dwelling unit is based on the net land area. 2 There shall be no minimum lot size. The total number of residential units permitted within the planning unit shall not be exceeded, as was shown on the statistical analysis for the original planned community, as amended. The dwelling densities as categorized in the City’s General Plan as low-density, medium-density, and high-density shall not be exceeded. The limitations contained within the General Plan shall take precedence over any discrepancies that may exist as compared to the statistical analysis for the planning units. 3 Required yards and distances between building structures are waived. 4 In computing the depth of a rear setback from any building where such setback opens on an alley, private street, or public park, onehalf of the width of such alley, street, or park may be deemed to be a portion of the rear setback, except that under this provision, no rear setback shall be less than 15 ft. 5 The building site coverage shall not exceed 50 percent of the land area contained within each recorded tract, exclusive of dedicated ROW. Swimming pool coverage shall not be considered as building site coverage.

City = City of Laguna Woods
ft = foot/ feet
ROW = right-of-way
sf = square foot/feet
The cumulative effect of the City’s residential development standards does not constrain the expansion of housing opportunities. Density standards are consistent with the densities established for General Plan land use categories. The setback requirements provide minimal light and air for development, are typical in the region, and do not unreasonably constrain housing opportunities.

All residential uses are currently required to provide the number of parking spaces as outlined in Table C. Developers of affordable and senior housing who are eligible for a density bonus pursuant to Government Code Sections 65919 through 65918 are eligible to use parking standards established by State law. Density bonus provisions are discussed in more detail later in this section.

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 8
Table C: Residential Parking Requirements
Use Parking Requirement
Attached or detached single-family
dwellings  2 covered parking spaces for each dwelling unit.

Two or more dwelling units on one
building site.
 Studio to 1-bedroom: 1.5 parking spaces for each dwelling unit  2-bedroom: 2 parking spaces for each dwelling unit
 3-bedroom and up: 2.5 parking spaces for each dwelling unit plus 0.5 parking space for each bedroom in excess.

Multifamily dwelling units (five or
more dwelling units)
 Each dwelling unit shall be assigned at least one standard-size parking space.  Additional unassigned parking spaces shall be provided using the following formula, which is based on the size of each unit:
o <700 sf: 0
o 701–800 sf: +0.17
o 801–900 sf: +0.34
o 901–1,000 sf: +0.50
o 1,001–1,100 sf: +0.67
o 1,101–1,200 sf: +0.84
o 1,201–1,300 sf: +1.0
o 1,301–1,400 sf: +1.18
o 1,401–1,500 sf: +1.34
o >1,500 sf: +1.5
 1 guest parking space per every 4 dwelling units, rounded up to the next nearest whole number, shall be provided.

Source: Zoning Code (City of Laguna Woods 2020).
sf = square foot/feet
The City monitors its development standards and their impact on development. Periodically, the City will amend the Zoning Code to ensure that development standards respond to market trends. The City has adopted other provisions in the Zoning Code that facilitate a range of residential development types and encourage affordable housing, as discussed below.

2.2.1 Affordable Housing Density Bonus
Section 13.26.040 of the City’s Zoning Code provides the details of the residential density bonus provision, which is intended to provide incentives for the production of housing for very lowincome, lower-income, or senior households in accordance with California Government Code Sections 65915 and 65917. On September 16, 2020, the City amended its Density Bonus Ordinance to ensure compliance with the current State law in effect at that time. Assembly Bill (AB) 1763 made a number of changes to density bonus requirements for affordable projects. The bill requires a density bonus to be granted for projects that include 100 percent lower-income units, but allows up to 20 percent of total units in a project that qualifies for a density bonus to be for moderate-income households. Under the revised law, density bonus projects must be allowed four incentives or concessions, and for developments within 0.5 mile of a major transit stop, a height increase of up to three additional stories or 33 feet (ft). A density bonus of 80 percent is required for most projects, with no limitations on density placed on projects within 0.5 mile of a major transit stop. The bill also allows developers to request the elimination of minimum parking requirements for rental units affordable to lower-income families that are either supportive housing or special-needs housing, as defined. AB 2345, which was signed in September 2020, further incentivizes the production of

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MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 9
affordable housing. The City Council adopted updated residential density bonus standards regulations in December 2021.

In 2008, the San Sebastian senior apartments were completed with 17 units affordable to lowincome residents. The development utilized a density bonus, and, as a result, the affordable units are subject to deed restrictions, which will ensure continued affordability through October 16, 2054.

2.2.2 Small-Lot Development
The City has not established any zoning districts that are intended to specifically facilitate small-lot residential development; however, the City’s Zoning Code does not require minimum lot sizes in the Residential Community (RC) and Residential Tower (RT) zoning districts.

2.2.3 Special-Purpose Zoning Districts
Special-purpose zoning districts permit design and development standards to be established that are tailor-made for planned project areas with unique attributes. The City’s Zoning Code includes the RC zoning district, which provides for the development and preservation of planned unit developments with a mixture of single-family attached and detached homes and multifamily homes.

Neighborhoods in the RC district are characterized by controlled physical access and specialized recreation facilities. Setbacks and other development standards are to be tailored specifically to each project by means of a precise development plan that is approved with the project.

2.3 PROVISION FOR A VARIETY OF HOUSING TYPES
State Housing Element law specifies that local governments must identify adequate sites to be made available through appropriate zoning and development standards to encourage the development of various types of housing for all economic segments of the population, including multifamily residential housing, factory-built housing, emergency shelters, transitional housing, and supportive housing. Table D summarizes the housing types permitted in each of the City’s zoning districts.

2.3.1 Single-Family Housing
Single-family housing is permitted by right in the Residential Multifamily (RMF) and RC districts. As outlined in the City’s Zoning Code, standard development in the RC district shall be predominantly of multiunit, multistoried structures and single-family, one-story structures in an arrangement of attached or detached dwellings and their accessory structures.

2.3.2 Multifamily Housing
Multifamily housing is permitted by right in the RMF, RC, and RT districts. The RMF zoning district is intended to provide for the development and preservation of high-density multifamily residential neighborhoods with a moderate amount of open space. Care is taken to ensure that uses approved in the RMF zoning district are compatible with surrounding residential neighborhoods. RMF-zoned properties are located in three areas of Laguna Woods off major roadways. The RC district was created to provide for the development and preservation of planned unit developments with a mixture of single-family attached and detached homes, as well as multifamily homes.

PROPOSED

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L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 10
Table D: Housing Types Per Zoning Code
Land Use Types
Zoning District
Residential
Multifamily (RMF)
Residential
Community (RC)
Residential Towers
(RT)
Accessory Building/Use A A A
Accessory Dwelling Unit P P P
Condominiums/Stock Cooperatives U U U
Community Apartment Projects U U U
Community Care Facilities (<6 persons) P P P
Congregate Care Facility U U U
Duplex P U X
Dwelling, Multiple-Family P P P
Dwelling, Single-Family P P X
Emergency and Transitional Housing Shelters X X X
Guesthouse X A X
Junior Accessory Dwelling Unit P P P
Mobile Home P P X
Mobile Home Development U U X
Planned Unit Development U U U
Residential Tract Sales & Rentals T/SE T/SE T/SE
Supportive Housing P P P
Transitional Housing P P P
Source: Zoning Code (City of Laguna Woods 2020).

A = Permitted only as an accessory to a Principal Use
P = Permitted as a Principal Use
T/SE = Permitted with an approved Temporary Use/Special Event permit U = Permitted with an approved use permit
X = Prohibited
RC-zoned properties encompass most of the land within Laguna Woods, reflecting its planned community heritage. The RT district was established to provide for the development and preservation of high-rise multifamily structures. RT-zoned properties exist in one small area in the western portion of Laguna Woods. Additional development standards are applicable to multifamily housing with more than five dwelling units on site, including standards related to circulation, lighting, waste disposal, and infrastructure.

2.3.3 Live/Work Units
The City’s Zoning Code does not currently include any zoning districts that allow for live/work units.

2.3.4 Senior Housing
Section 13.06.010 of the City’s Zoning Code defines senior citizen housing as “a residential development consisting of at least 35 dwelling units which is developed for, or substantially rehabilitated or renovated for, senior citizens.” Additionally, California Civil Code Section 51.3 defines “senior citizen” as a person 62 years of age or older, or 55 years of age or older, in a senior citizen housing development, and “senior citizen development” as a residential development developed, substantially rehabilitated, or substantially renovated for senior citizens that has at least 35 dwelling units.

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MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 11
Section 13.26.030 of the City’s Zoning Code, which provides details about housing incentive use permits for affordable or senior citizen housing, states that in any zoning district that permits residential uses, a housing incentive use permit application to permit more dwelling units than allowed by zoning, and/or establish special site development standards, may be approved for the purposes of facilitating affordable and/or senior citizen housing developments.

2.3.5 Manufactured Housing and Mobile Homes
Manufactured housing and mobile homes offer an affordable housing option for many low- and moderate-income households. Manufactured housing is permitted by right in all zoning districts that permit single-family dwelling units, as required by State law. Mobile homes are permitted in the RMF and RC districts, and mobile home parks are permitted in those same zoning districts with an approved use permit. Mobile home developments are subject to additional development standards not related to the use; instead, the standards relate to landscape screening and design. According to California Department of Finance estimates, there were no mobile homes in Laguna Woods as of January 2020.2

According to the National Manufactured Home Construction and Safety Act of 1974, a manufactured home built and certified after June 15, 1976, and constructed on a permanent foundation may be located in any residential zoning district where a conventional single-family detached dwelling is permitted subject to the same restrictions on density and to the same property development regulations. Manufactured homes are currently allowed in all residential zoning districts, subject to foundational regulations found in Government Code Section 65852.3. Manufactured housing is treated the same as single-family dwellings and is subject to the same property development standards and permitting process. The City’s Zoning Code requires manufactured housing to be architecturally compatible (roofing overhangs, roofing materials, exterior siding, stucco, etc.) with single-family dwellings.

2.3.6 Accessory Dwelling Units
Per Government Code Section 65852.2, an “accessory dwelling unit” (ADU) is defined as “an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated.” ADUs may be an alternative source of affordable housing for lower-income households and seniors.

The City has updated its Zoning Code to permit ADUs by right if they are contained within the space of a proposed or existing single-family dwelling or accessory structure, or existing multifamily dwelling. This update to the City’s Zoning Code was made to comply with State requirements, with Government Code Section 65852.2 used as a baseline for the amendments. 2 California Department of Finance. 2020. E-5 Population and Housing Unit Estimates. Website:
https://www.dof.ca.gov/Forecasting/Demographics/Estimates/E-5/ (accessed June 11, 2021).

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L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 12
Recent State legislation, including AB 68, AB 587, AB 881, and Senate Bill (SB) 13, addresses standards and regulations for ADUs. The bills modified the fees, application process, and development standards for ADUs, with the goal of lowering barriers to ADU development and increasing overall numbers of ADUs. Key provisions include the following:
• Prohibiting standards related to lot coverage standards, lot size, floor area ratio (FAR), or open space that have the effect of limiting ADU development
• Allowing ADUs within or attached to attached garages, storage areas, or accessory structures • Removing requirements to replace parking when a garage or carport is demolished to develop an ADU
• Prohibiting maximum sizes for ADUs that are less than 850 square feet (sf) (1,000 sf for units with two or more bedrooms)
The City last updated its Zoning Code with regard to ADUs in 2020 to address the requirements of AB 68, AB 587, AB 881, and SB 13.

2.3.7 Residential Care Facilities
The Lanterman Developmental Disabilities Services Act (Lanterman Act) is a State law that sets out the rights of persons with developmental disabilities. The Lanterman Act impacts local zoning ordinances by requiring the use of property for the care of six or fewer disabled persons to be classified as a residential use, permitted by right, under zoning provisions. More specifically, a stateauthorized, certified, or licensed family care home, foster home, or a group home serving six or fewer disabled persons or dependent and neglected children on a 24-hour-a-day basis is considered a residential use that is to be permitted in all residential zoning districts. No local government can impose stricter zoning or building and safety standards on these homes. Due to the unique characteristics of larger (more than six persons) residential care facilities, most local governments require a discretionary use permit to ensure neighborhood compatibility in the siting of these facilities.

The City’s Zoning Code accommodates both large and small residential care facilities. The City facilitates and encourages the development of residential care facilities by treating licensed facilities that serve six or fewer persons as standard residential uses, consistent with State law. As such, community care facilities are permitted by right in all residential zoning districts. Additionally, community care facilities serving seven to 12 persons, except for large family day care homes, are permitted in any district, planned community, or specific plan area zoned for residential use, subject to the issuance of a use permit. The use permit is intended to ensure that the development is consistent with applicable zoning. In a supportive housing development, housing can be coupled with social services such as job training, alcohol and drug abuse programs, and case management for populations in need of assistance, such as the homeless, those suffering from mental illness or substance abuse problems, and the elderly or medically frail. Because supportive housing is a residential use, it would be treated as such in the development process whether the supportive housing development consisted of single-family detached units or apartment buildings. Similar to

PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 13
other multifamily developments, the required use permit process is intended to establish appropriate and unique development standards for residential development in the RC and RT zoning districts, as the zoning regulations contain few standards. This allows for greater specificity in development standards.

Review of the California State Community Care Licensing Division inventory of community care facilities identifies two residential care facilities in Laguna Woods. These facilities are for individuals who require 24-hour supervision but who do not generally need medical care beyond routine health checks and medication monitoring. Las Palmas is a licensed residential care community with 184 rental units, and the Regency is a licensed residential care community that consists of 192 rental units and offers both independent and assisted living on a month-to-month basis. The Regency is the only residential community that, under unique circumstances, will accommodate individuals younger than 55 within its assisted living facility.

2.3.8 Single Room Occupancy
Single Room Occupancy (SRO) facilities are small, one-room units occupied by a single individual and may either have shared or private kitchen and bathroom facilities. SROs are rented on a monthly basis typically without rental deposit and can provide an entry point into the housing market for extremely low-income individuals, formerly homeless persons, and disabled persons.

The City has adopted provisions in its Zoning Code (Section 13.26.170) to accommodate and regulate the establishment of SRO uses. These provisions include the following requirements:
• In the absence of findings as set forth in alternatives to off-street parking requirements, provision of one-half parking space for each guest unit, plus one space for each employee • Submittal of a management plan outlining management policies, operations, emergency procedures, a security program, rental procedures, maintenance plans, and staffing as part of the use permit application
• Provision of an on-site manager on a 24-hour basis
• Provision of a single manager’s unit, which shall be designed as a complete residential unit and be a minimum of 225 sf in size.

SRO uses are permitted in any zoning district or specific plan area zoned for hotels, subject to the approval of a use permit. Furthermore, the City’s Zoning Code states that SROs will be treated as nonresidential uses.

2.3.9 Emergency Shelters and Low Barrier Navigation Centers An emergency shelter is a facility that provides shelter to homeless families and/or homeless individuals on a limited short-term basis. According to the 2019 Point-in-Time Count for Orange

PROPOSED

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L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 14
County,3 there were five unsheltered people living in homelessness in Laguna Woods. State law requires emergency shelters to be permitted by right in at least one zoning district where adequate capacity is available to accommodate at least one year-round shelter. The City’s Zoning Code was amended in 2011 to include regulations pursuant to State law for emergency and transitional housing.

The City’s Zoning Code Section 13.23.010 was also amended in 2018 to permit emergency shelters in the Community Facilities – Public/Institutional (CF-P/I) and Community Facilities – Private (CF-P) zoning districts as a by-right use. The CF-P/I and CF-P zoning districts encompass approximately

17.805 acres of land across five sites – four places of worship with surface parking lots and interior space suitable for conversion to emergency shelters, and Orange County Fire Authority (OCFA) Fire Station No. 22. There is sufficient capacity to accommodate one year-round shelter housing five people, as required by State law. The CF-P/I and CF-P zoning districts were determined to be the most conducive to provision of emergency shelters by right since the zoning districts are allowed a uses that would facilitate the provision of government and social services to the community. The zoning district is appropriate for schools, hospitals, cultural venues, churches, temples and places of worship, which all require large facilities with capabilities to serve large amounts of people at a time.

Table E provides the development standards that apply to the CF-P and CF-P/I zoning districts.

Table E: Development Standards for the Community Facilities Zoning Districts
Development Standard CF-P CF-P/I
Maximum Building Height (ft) 40 40
Minimum Building Site Area (sq ft) — —
Minimum Building Site Width (ft) — —
Minimum Perimeter Setback (ft)
From Street ROW 20 20
From Alley 10 0
From Residential Districts 10 10
From Nonresidential Districts 0 0
Maximum FAR 0.3 0.3
Maximum Building Site Coverage None None
Parking See Code Section 13.16.300-400
Landscaping See Code Section 13.16.250
Screening See Code Section 13.16.240
Signs See Code Section 13.16.410-530
Waste Management/Hazardous Materials See Code Section 13.20.200 Source: Laguna Woods Municipal Code Section 13.13.030.

FAR = floor area ratio
ft = foot/feet
ROW = right-of-way
sq ft = square foot/feet
3 United to End Homelessness. Point-In Time Count. 2019. Website: https://www.unitedtoend homelessness.org/2019-point-in-time-count (accessed April 29, 2021).

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MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 15
In addition to application of the CF-P/I and CF-P district development standards, pursuant to Government Code Section 65583, the City can also specify written, objective standards to regulate the following aspects of emergency shelters to enhance compatibility:

1. Location and Separation: Emergency shelters shall be situated more than 300 ft from another emergency shelter.

2. Physical Characteristics:
a. The maximum number of beds for emergency shelters shall be 20 unless a larger number is approved through a conditional use permit.
b. The maximum number of beds does not apply in situations of citywide or statewide designated disasters or catastrophic conditions as determined by the City Council or City Manager.
c. Emergency shelters shall have adequate private living space, shower and toilet facilities, and secure storage areas for its intended clients.
d. All on-site waiting and client intake areas shall be located in the interior of the emergency shelter and shall be of sufficient size to prevent any such activities from occurring in the exterior of the emergency shelter.

The CF-P and CF-P/I designation has been applied to areas along El Toro Road and Moulton Parkway.

The CF-P/I and CF-P zoning districts have high access to public transit services. The Orange County Transportation Authority has two local routes, Routes 90 and 89, which provide regional access along the public streets located immediately adjacent to the CF-P/I and CF-P zoning districts.

Therefore, these sites have reasonable access to public transit.

The City provides adequate and accessible sidewalks, vehicular access, and bicycle access to the CF-P/I and CF-P zoning districts.

The CF-P/I and CF-P zoning districts are surrounded by residential, open space, and/or community commercial land uses, and are therefore not located in close proximity to any uses that would create hazardous conditions or conditions inappropriate for human habitability. Current uses in the CF-P and CF-P/I zoning districts include four churches and their accompanying surrounding parking lots, and the OCFA Fire Station No. 22. These zones are conducive to building emergency shelters due to their relative sizes, their proximity to public transit and main thoroughfares, and the allowable uses on their sites.

The City’s Zoning Code requires the following conditions to be met for emergency shelters in order to ensure “adequate” private living space requirements.

PROPOSED

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L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 16

1. Operational Standards.
(1) If an emergency shelter includes a drug or alcohol abuse counseling component, appropriate state and/or federal licensing shall be required. (2) Emergency shelters shall limit occupancy by each client to no more than 180 days in a 365-day period.
(3) Emergency shelters shall conduct all on-site waiting and client intake activities in the interior of the emergency shelter and prevent any such activities from occurring in the exterior of the emergency shelter.
(4) Emergency shelters shall provide on-site security during all hours of operation, including a minimum of one security guard licensed by the State of California for each 20 clients, unless alternate security arrangements are approved through a conditional use permit.
(5) Emergency shelters shall provide on-site management during all hours of operation, including a minimum of one supervisor per emergency shelter and a minimum of one additional attendant for each 20 clients, unless alternate on-site management arrangements are approved through a conditional use permit.

AB 139 requires that emergency shelters provide parking to accommodate all staff, “provided that the standards do not require more parking for emergency shelters than other residential or commercial uses within the same zone.” The City’s Zoning Code does not contain unique parking standards for emergency shelters.

AB 101 requires cities to allow a Low Barrier Navigation Center development by right in areas zoned for mixed uses and nonresidential zoning districts permitting multifamily uses if it meets specified requirements. A “Low Barrier Navigation Center” is defined as “a Housing First, low-barrier, serviceenriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.” Low Barrier Navigation Centers may include options such as allowing pets, permitting partners to share living space, and providing storage for residents’ possessions. AB 101 also sets a timeline for jurisdictions to act on applications for Low Barrier Navigation Center developments. The requirements of this bill are effective through the end of 2026, at which point they are repealed.

2.3.10 Transitional Housing and Supportive Housing
Health and Safety Code Section 50675.2 defines “transitional housing” and ”transitional housing development” as buildings configured as rental housing developments but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time, which shall be no less than six months. Residents of transitional housing are usually connected to supportive services designed to assist the homeless in achieving greater economic independence and a permanent,

PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 17
stable living situation. Transitional housing can take several forms, including group quarters with beds, single-family homes, and multifamily apartments, and typically offers case management and support services to help return people to independent living (often in six months to two years).

Government Code Section 65582 defines supportive housing as housing with no limits on the length of stay that is occupied by a “target population” and links this population with the provision of housing and social services. “Target population” means persons with low incomes who have one or more disabilities, including mental illness, HIV/AIDS, substance abuse, or other chronic health condition, or individuals eligible for services provided pursuant to the Lanterman Act (Division 4.5 [commencing with Section 4500] of the Welfare and Institutions Code) and may include, among other populations, adults, emancipated minors, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people (Government Code Sections 65582(f) and (g)).

State law requires transitional and supportive housing to be defined as a residential use and subject only to the same regulations as comparable residential uses. The City currently permits emergency shelters by right in the Community Facilities - Public/Institutional (CF-P/I) and Community Facilities - Private (CF-P) zoning districts with the intent to provide adequate development and operational standards for such uses to ensure that the appropriate housing and services for special needs populations are met.

AB 2162 requires supportive housing projects of 50 units or fewer to be permitted by right in zoning districts where multifamily and mixed-use developments are permitted, when the development meets certain conditions. The City may choose to allow larger supportive housing projects by right in those zoning districts. The bill also prohibits minimum parking requirements for supportive housing within 0.5 mile of a public transit stop.

2.3.11 Employee Housing
The City has no land zoned for agriculture and does not contain any agricultural land uses. Further, the 2015–2019 American Community Survey estimates there are no residents who hold farming, fishing, or forestry occupations. Therefore, there is no need for farmworker housing.

Further, because the City has not adopted any ordinances relating to employee housing, it does not anticipate that any other facilities or employers would provide housing for their employees.

2.4 HOUSING FOR PERSONS WITH DISABILITIES
Both the federal Fair Housing Act and the California Fair Employment and Housing Act impose an affirmative duty on local governments to make reasonable accommodations (i.e., modifications or exceptions) in their zoning and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling.

The City has conducted a review of zoning and building code requirements and permitting procedures to identify potential constraints for housing for persons with disabilities. The City’s policies and regulations regarding housing for persons with disabilities are described below.

PROPOSED

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L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 18

2.4.1 Zoning and Land Use
Restrictive land use policies and zoning provisions can constrain the development of housing for persons with disabilities.

2.4.1.1 Definition of Family
Local governments may restrict access to housing for households failing to qualify as a “family” by the definition specified in the Zoning Code. Specifically, a restrictive definition of “family” that limits the number of and differentiates between related and unrelated individuals living together may illegally limit the development and siting of group homes for persons with disabilities, but not for housing families that are similarly sized or situated.4 Section 13.06.010(d)(395) of the Zoning Code defines “family” as “One or more persons occupying one dwelling unit. The term "family" includes the occupants of community care facilities serving six or fewer persons that are permitted or licensed by the State. The term "family" does not include occupants of a fraternity, sorority, boardinghouse, lodginghouse, club, or motel.” To accommodate disabled persons in public facilities, the City defers to the California Access Compliance Reference Manual from the Department of General Services, Division of the State Architect.

The Housing Element includes a program to amend the Zoning Code’s definition of “family” to resolve inconsistencies between the current definition and applicable state law.

2.4.1.2 Residential Care Facilities
Under the Lanterman Act, small licensed residential care facilities for six or fewer persons must be treated as regular residential uses and permitted by right in all residential zoning districts. The City permits small licensed residential care facilities in all residential zoning districts and does not have additional development standards for these facilities and is, therefore, in compliance with the Lanterman Act.

The Housing Element includes a program to amend the Zoning Code to remove the requirement for residential care facilities for seven to 12 persons to obtain a conditional use permit.

2.4.1.3 Parking Standards
Development in the City is required to meet parking standards for people with disabilities, as required by State law, including requirements for the number and design of disabled parking spaces. 4 California court cases (City of Santa Barbara v. Adamson, 1980 and City of Chula Vista v. Pagard, 1981, etc.) have ruled an ordinance as invalid if it defines a “family” as: (a) an individual; (b) two or more persons related by blood, marriage, or adoption; or (c) a group of not more than a specific number of unrelated persons as a single housekeeping unit. These cases have explained that defining a family in a manner that distinguishes between blood-related and non-blood related individuals does not serve any legitimate or useful objective or purpose recognized under the zoning and land use planning powers of a municipality, and therefore violates rights of privacy under the California Constitution.

PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 19

2.4.1.4 Reasonable Accommodation
The Fair Housing Act requires that local governments provide reasonable accommodation to rules, policies, practices, and procedures where such accommodation may be necessary to afford individuals with disabilities equal opportunity to housing. To create a process for making requests for reasonable accommodation to land use and zoning decisions and procedures regulating the siting, funding, development and use of housing for people with disabilities, the City has adopted a Reasonable Accommodations Ordinance in accordance with State law (Chapter 13.15 of the City’s Zoning Code). The Reasonable Accommodations Ordinance provides for flexibility in the City’s development standards to accommodate persons with disabilities.

The following findings are required to approve reasonable accommodation requests:

1. The requested accommodation is requested by or on the behalf of one or more individuals with a disability protected under the fair housing laws;

2. The requested accommodation is necessary to provide one or more individuals with a disability an equal opportunity to use and enjoy a dwelling;

3. The requested accommodation will not impose an undue financial or administrative burden on the city;

4. The requested accommodation will not result in a fundamental alteration in the nature of a city program or law, including but not limited to land use or zoning; and

5. The requested accommodation will not, under the specific facts of the case, result in a direct threat to the health and safety of other individuals or substantial physical damage to the property of others.

The process to request reasonable accommodations is set forth in Section 13.15.014 of the City’s Zoning Code and is streamlined to include only an application containing the following information:

1. The applicant's name, address, and telephone number;

2. Documentation that the applicant is:
a. An individual with a disability;
b. Applying on behalf of one or more individuals with a disability; or c. A developer or provider of housing for one or more individuals with a disability;

3. Address of the property for which accommodation is requested;

4. The name, address, and telephone number of the property owner(s), if different from the applicant;

5. The current use of the subject property;

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 20

6. The specific basis for the claim that the applicant is considered disabled under the fair housing laws;

7. A description of the accommodation requested including reference to the zoning and development code provision, policy, or procedure from which accommodation is sought;

8. A detailed written explanation of why the requested accommodation is necessary for the individual(s) with a disability to use and enjoy the dwelling; and

9. Any other information that the Community Development Director reasonably concludes is necessary to determine whether the findings required by Section 13.15.016 can be made, so long as any request for information regarding the disability of the individuals benefited complies with fair housing law protections and the privacy rights of the individuals affected.

No application fee is required per Section 13.15.014(a) of the City’s Zoning Code.

Once the Community Development Director deems an application complete, public noticing of the request for reasonable accommodation is provided as follows, in furtherance of the fifth finding required for approval (that there will be no direct threat to the health and safety of other individuals or substantial physical damage to the property of others):
• In the event that there is no approval, permit, or entitlement sought other than the request for reasonable accommodation, the notice shall be mailed to the owners of record of all properties that are immediately adjacent to the property that is the subject of the request; or • In the event that the request is being made in conjunction with some other approval, permit or entitlement, the notice shall be transmitted along with the notice of the other proceeding.

Section 13.15.013 of the City’s Zoning Code requires the Community Development Director or Community Development Department to act on complete applications within 30 days, except when further information has been requested but not yet provided by the applicant (the Zoning Code is explicit that information requested from the applicant must be consistent with fair housing laws).

Determinations are provided in writing to the applicant and other parties previously noticed.

The Housing Element includes Program H-1.2.6 to explicitly identify that the required finding for applications for reasonable accommodations to not “result in a direct threat to the health and safety of other individuals or substantial physical damage to the property of others” is to be interpreted consistent with 42 U.S.C. § 3604(f)(9) and Program H-1.3.4 to remove the public noticing requirements for applications for reasonable accommodations.

2.4.2 Building Codes
The City enforces the California Building Code (CBC), including Chapters 11A (Housing Accessibility) and 11B (Accessibility to Public Buildings, Public Accommodations, Commercial Buildings and Publicly Funded Housing), which regulate the access and adaptability of buildings to accommodate persons with disabilities. Furthermore, Government Code Section 12955.1 requires that 10 percent of the total dwelling units in multi-family buildings without elevators consisting of three or more

PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 21
rental units or four or more condominium units are subject to the following building standards for persons with disabilities:
• The primary entry to the dwelling unit shall be on an accessible route unless exempted by site impracticality tests.
• The public and common areas shall be readily accessible to and usable by persons with disabilities.
• All the doors designed to allow passage into and within all premises shall be sufficiently wide to allow passage by persons in wheelchairs.
• All premises within covered multifamily dwelling units shall contain the following features of adaptable design:
○ An accessible route into and through the covered dwelling unit. ○ Light switches, electrical outlets, thermostats, and other environmental controls in accessible locations.
○ Reinforcements in bathroom walls to allow later installation of grab bars around the toilet, tub, shower stall, and shower seat, where those facilities are provided. ○ Useable kitchens and bathrooms so that an individual in a wheelchair can maneuver about the space.

Compliance with the CBC, Government Code, and federal Americans with Disabilities Act (ADA) is assessed and enforced by the Building Division as a part of the building permit process. The City has not adopted any amendments to the CBC that diminish the ability to accommodate persons with disabilities.

2.4.3 Conclusion
The City has not adopted unique restrictions that constrain the development of housing for persons with disabilities nor has it adopted regulations inconsistent with applicable federal or State law.

There are no City-initiated constraints on housing for persons with disabilities caused or controlled by the City. In addition, the City has adopted formalized criteria and processing procedures for reasonable accommodation applications within its Zoning Code.

2.5 SITE IMPROVEMENTS
Developers of single-family residential tracts in the City are required to install arterial and local streets; sewer and water lines; storm drainage; curbs, gutters, and sidewalks; street lighting; underground utilities; and landscaping in the public right-of-way within and adjacent to a tract, if such facilities do not already exist. In most cases, these facilities are dedicated to the City or other agencies that are responsible for ongoing maintenance. Requirements for site improvements are at a level necessary to meet the City's costs and are necessary to protect health, safety, and welfare.

The cost of required off-site improvements vary with the sales price of each dwelling unit depending on the nature of development (i.e., level of improvements required). The City may also impose

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 22
development impact fees on future housing developments in order to recover costs of installing offsite improvements including upgrading the circulation system and other urban service systems to serve increased density. The developed portions of Laguna Woods have the majority of necessary infrastructure, such as streets, electrical and water facilities, already in place. However, due to the age of the existing infrastructure, many areas where infill housing development is expected to occur may require infrastructure improvements to ensure sufficient capacity at build-out.

The City’s Zoning Code includes minimum street width standards. Private streets serving four or less parcels as access to a public street are required to provide for a minimum pavement width of 16 feet within a minimum 20 ft wide right-of-way. Private streets serving five parcels or more as access to a public street are required to provide for a minimum pavement width of 28 ft within a minimum 40 ft wide right-of-way. Sidewalks are required to not be less than 6 ft in width. Streets in residential districts requiring a building site area of 15,000 sf or more and where no sidewalks are to be installed, are required to have a right-of-way that will provide a parkway width of at least 4 ft.

2.6 PLANNING/ZONING AND DEVELOPMENT IMPACT FEES
Housing development in Laguna Woods is subject to the following types of fees and exactions: (1) permit processing fees for planning and zoning, and (2) impact fees or exactions, imposed to defray all or a portion of the public costs related to development projects.

Since Fiscal Year 2015-16, the City has retained a qualified third-party consultant to conduct an annual study of the “nexus” between the City’s planning/zoning fees and the reasonable costs of associated services. Planning/zoning fees have generally been set at the City’s reasonable cost of providing services. Profit is not a component of the City’s planning/zoning fees.

Table F lists the City’s residential planning/zoning fees, based off the fee schedule that was effective July 19, 2021. Prior to this update, the City’s planning/zoning fees were last updated in 2020. There were no significant increases to planning/zoning fees.

Table F: Current Residential Planning/Zoning Fees
Planning/Zoning Fees Initial Deposit
Conditional Use Permit $4,000
Development Agreement $10,000
Environmental Impact Report $10,000
General Plan Amendment $10,000
Zoning Code Amendment $10,000
Initial Study/Negative Declaration/Mitigated Negative Declaration $5,000 Sign Program $2,500
Site Development Permit $4,000
Specific Plan $10,000
Variance $3,500
Zone Change $10,000
Sources: City of Laguna Woods (2021).

Note: All fees are the minimum initial fee for the service. The final fee is based on actual costs, which may be less than the minimum fee (in which case, the unspent amount of the deposit is returned to the applicant) or exceed the minimum fee (in which case, supplemental deposits may be collected and, ultimately, the actual cost is collected with any unspent amount returned to the applicant).

PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 23
Table G provides a comparison of the City’s planning/zoning fees with other nearby cities. As shown, the City’s planning/zoning fees are generally comparable to other cities.

Table G: Comparison of Residential Planning/Zoning Fees Fee Type Laguna
Woods Laguna Niguel Laguna Hills Lake Forest
Conditional Use Permit $4,000 $3,800 $8,148.07 $2,400-5,000 Variance $3,500 $3,800 $6,293.38 $5,000
Zone Change $10,000 $5,000 $10,522.43 $10,000
General Plan Amendment $10,000 $5,000 $7,547.86 $10,000 Tentative Tract Map Varies  Preliminary Screencheck: $1,425 (Flat)  Filing: $2,925 + $25/each lot (Deposit)
 Added Lots to Filed Map: $36/each lot (Flat)
 Changed Map: $370 (Flat)
 Appeal to City Council: $585 (Flat)
 Amendment to Conditions: $155 (Flat)
 Amend Approved Map: $1,000 + $36/each numbered
lot (Deposit)
$9,182.99 $10,000
Tentative Parcel Map Varies  Preliminary Screencheck: $980 (Flat)  Filing: $2,080 (Deposit)
 Appeal to City Council: $235 (Flat)
 Amendment to Conditions: $155 (Flat)
 Amend Approved Map: $1,000 + $36/each numbered
lot (Deposit)
$9,182.99 $7,500
Sources: City of Laguna Woods (2020); City of Laguna Niguel (2020); City of Laguna Hills (2020); City of Lake Forest (2020).

Note: The fees listed above are generally approximated base fees or deposits; if the cost of providing the service exceeds the base fee or deposit, the balance is collected from the applicant.

In addition to planning/zoning fees, the City is required to collect development impact fees on behalf of the County of Orange and the San Joaquin Hills Transportation Corridor Agency (SJHTCA).

These fees are established independent of the City. A summary of fees as of July 2022 follows. • Coastal Area Road Improvements and Traffic Signals Program – The City is required to collect this fee on behalf of the County of Orange prior to City building permit issuance for new development projects only. For new single-family residential development projects, the fee is $2,989/unit. For new multi-family residential development projects, the fee is $2,392/unit. • Moulton Parkway and Laguna Niguel Fee Program – The City is required to collect this fee on behalf of the County of Orange prior to City building permit issuance for new development projects only. For new single-family residential development projects, the fee is $615/unit. For new multi-family residential development projects, the fee is $360/unit. The County of Orange intends to end this fee program in the near future.
• San Joaquin Hills Road Fee Program – The City is required to collect this fee on behalf of the SJHTCA prior to City building permit issuance for new development projects only. Fees vary based on whether a project is located in “Zone A” or “Zone B,” as defined by the SJHTCA (a map is available at https://www.thetollroads.com/about-tca/development-impact-fee-dif-program/).

For new single-family residential development projects, the fee is $6,211/unit in Zone A and

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 24
$4,814/unit in Zone B. For new multi-family residential development projects, the fee is $3,618/unit in Zone A and $2,808/unit in Zone B.

Other government agencies collect development impact fees directly from applicants. Again, these fees are established independent of the City. A summary of common fees as of July 2022 follows. • Capistrano Unified School District – Applicants are required to pay a fee directly to the Capistrano Unified School District prior to City building permit issuance for new development projects. The fee only applies if the project is located within the Capistrano Unified School District’s boundaries (a map is available at https://www.capousd.org/Schools/School-Locator/ index.html). The fee is $4.08 per square foot.
• Saddleback Valley Unified School District – Applicants are required to pay a fee directly to the Saddleback Valley Unified School District prior to City building permit issuance for new development projects and additions over 500 square feet. This fee only applies if the project is located within the Saddleback Valley Unified School District’s boundaries (a map is available at https://www.svusd.org/about/school-boundaries). The fee is $4.79 per square foot. • El Toro Water District (ETWD) – Applicants are required to pay a capital facilities fee directly to the ETWD prior to service being provided for new residential development projects. This fee varies based on meter size, but ranges from $2,145 to $21,856 per meter, and the number of gallons of sewage to be discharged to the ETWD’s system each day times $9.311.

In general, planning/zoning and development impact fees can constrain housing development and compromise affordability because the additional cost borne by developers contributes to overall increased housing unit cost. However, the City’s planning/zoning fees are comparable to nearby cities and assessed only to recover reasonable costs of providing services (profit is not a component and the deposit-based fee structure allows for only actual costs to be charged). Development impact fees affecting residential development projects in Laguna Woods are outside of the City’s control.

The City does not collect development impact fees of its own creation.

As noted elsewhere in this Constraints Analysis, the City has not processed a residential development application since the San Sebastian Apartments in the mid-2000s. Since that date, the City has evaluated the adequacy and rationality of its planning/zoning fees, and made changes to recover its reasonable costs of providing services, as allowed by state law. While some planning/ zoning fees have increased as a result of this evaluation, others have been eliminated. For example, the City no longer collects parkland dedication (Quimby Act) fees nor library development fees on behalf of the Orange County Library District. In addition, the County of Orange intends to end the Moulton Parkway and Laguna Niguel Road Fee Program in the near future.

Using the San Sebastian Apartments project as a representative example of multi-family residential development activity, Table H contains City staff’s estimate of planning/zoning and development impact fees assuming the project were built today at a cost of $50,723,304 (calculated based on the actual amenities and current market estimates for construction thereof).

PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 25
Table H: Prototypical Multi-Family Residential Project
Planning/Zoning and Development Impact Fees
Development Fees Amount
City Planning/Zoning Fees $35,000
Coastal Area Road Improvement and Traffic Signals Program (Impact Fee) $325,486 Moulton Parkway and Laguna Niguel Fee Program (Impact Fee) $49,044 San Joaquin Hills Road Fee Program (Impact Fee) $472,216 Saddleback Valley Unified School District (Impact Fee) $668,932 El Toro Water District (Capital Facilities Fee) $170,000 TOTAL PLANNING/ZONING AND DEVELOPMENT IMPACT FEES $1,720,678 Per Unit @ 134 units $12,841
Total planning/zoning and development impact fees for the prototypical apartment project in Table H represent approximately 3.4 percent of the estimated development cost, far below the 10– 15 percent of development costs that the Housing and Community Development Department of the State of California (HCD) considers “typical” per its Building Blocks: Fees and Exactions guidance (retrieved July 2022). Of particular note is that only approximately 2 percent of total planning/zoning and development impact fees are established by the City.

Table I contains City staff’s estimate of planning/zoning and development impact fees for a new 2,150 square foot single-family home (one unit) development project built today at a cost of $400,000 (comparable to the example used for similar purposes by the City of Aliso Viejo in that city’s draft Housing Element dated February 1, 2022).

Table I: Prototypical Single-Family Home Project Planning/Zoning and Development Impact Fees
Development Fees Amount
City Planning/Zoning Fees $2,500
Coastal Area Road Improvement and Traffic Signals Program (Impact Fee) $2,989 Moulton Parkway and Laguna Niguel Fee Program (Impact Fee) $615 San Joaquin Hills Road Fee Program (Impact Fee) $6,211
Saddleback Valley Unified School District (Impact Fee) $10,299 El Toro Water District (Capital Facilities Fee) $2,500
TOTAL PLANNING/ZONING AND DEVELOPMENT IMPACT FEES $25,114 Total planning/zoning and development impact fees for the prototypical single-family home project in Table I represent approximately 6.3 percent of the estimated development cost, far below the 10–15 percent of development costs that HCD considers “typical” per its Building Blocks: Fees and Exactions guidance (retrieved July 2022). Of particular note is that only approximately 10 percent of total planning/zoning and development impact fees are established by the City.

The City’s development fees do not appear to represent a constraint on housing development.

Assembly Bill 641 (2007–2008) provides cash flow flexibility for the majority of affordable housing projects by allowing development impact fees to be paid as late as the date of the final inspection, or the date the certificate of occupancy is issued, whichever occurs first.

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 26

2.7 LOCAL PROCESSING AND PERMIT PROCEDURES
Development processing and permitting procedures are necessary steps to ensure that residential construction proceeds in an orderly manner. However, the time and cost of permit processing and review can be a constraint to housing development if they place an undue burden on the developer.

Although the City has not processed an application for a housing development project since the San Sebastian Apartments in the mid-2000s, it is committed to working closely with developers and applicants to approve projects in a timely manner. The San Sebastian Apartments project received its planning/zoning approvals in October 2005 and submitted an application for building permits in September 2006 (approximately 11 months apart). Due to the lack of housing development applications since the San Sebastian Apartments project, there is no other local data that speaks to length of time between receiving approval for a project and submittal of an application for building permits.

For a typical project, the developer would meet with Planning Division staff to discuss the project and then submit plans for review. Plans would either be submitted to the Planning Division first and, once approved, to the Building Division for building permitting, or submitted concurrently to both the Planning Division and Building Division if so desired by the applicant. Applicants that submit concurrent applications would effectively eliminate any length of time between receiving approval for their project and submittal of an application for building permits. Projects requiring a Site Development Permit (SDP) or Conditional Use Permit (CUP) would be reviewed and acted upon as described herein. Throughout construction, various City divisions would perform inspections to monitor the progress of the project. This process is comparable to that of many cities in the region; therefore, processing times and expectations are typical for the region.

A typical new single-family home development project (one unit) would require only the issuance of ministerial building permits, unless the project is subject to the State Subdivision Map Act in which case those requirements would also apply. The Building Division’s initial review of building permit applications for single-family homes is seven days, followed by five days for subsequent submittals.

A typical new multi-family residential development project of three units or less would require only the issuance of ministerial building permits, unless the project is subject to the State Subdivision Map Act in which case those requirements would also apply. The Building Division’s initial review of building permit applications for multi-family residential projects is the same as single-family homes – seven days, followed by five days for each subsequent submittal.

Table J outlines the development review processing times and approval procedures for residential developments applications. For housing development projects proposed to occur within any of the “by-right” overlay zoning districts to be created through the Housing Element’s rezoning program, it is unlikely that the first four actions/requests listed in Table J, or variances, would be required, barring an unusual request from the applicant. The overlay zoning districts are intended to expedite the development of housing in a manner that complies with State housing law.

PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 27
Table J: Typical Permit Processing Timelines
Action/Request Processing Time Comments
Environmental Impact Report 9-12 months Processing and review time limits controlled through CEQA. Adopted by the City Council.

Initial Study/Mitigated Negative
Declaration
6-9 months Processing and review time limits controlled through CEQA. Adopted by the City Council.

General Plan Amendment 10–12 months Government Code Section 65358 limits the number of times any element of the General Plan can be amended
each calendar year. Approved by the City Council.

Requires a public hearing.

Zone Change 8–12 months Certain procedures and time limits established by Gov.

Code Sections 65854-65857. Approved by the City
Council. Requires a public hearing.

Tentative Parcel Map 45–60 days Processing and review time limits controlled through the State Subdivision Map Act. Approved by the City Council.

Tentative Tract Map 6–8 months Processing and review time limits controlled through the State Subdivision Map Act. Approved by the City Council.

Variance 3–4 months Approved by the City Council. Requires a public hearing.

Conditional Use Permits 3–4 months Approved by the City Council. Requires a public hearing.

Site Development Permit 2-3 months Approved by the Community Development Director.

CEQA = California Environmental Quality Act
Depending on the type of approval that is required, a one or two-level decision-making process may be required. The City’s process is somewhat more streamlined than many other cities in that the City Council also serves as the Planning Commission.

2.7.1 Site Development Permit
Multi-family residential development projects consisting of more than four units are required to obtain a Site Development Permit (SDP) to establish the use when permitted by right. It is anticipated that most (if not all) of the “by-right” housing projects newly possible due to this Housing Element would require a SDP. The purpose of a SDP is to provide for administrative review of detailed development plans for a proposed use. Uses that require a SDP are regarded as having a relatively low potential for adverse impacts on the subject site or surrounding community due to the nature or magnitude of the use vis-a-vis the sensitivity of the subject site or surrounding community.

SDP applications are acted upon by the Community Development Director unless he/she/they determine on a case-by-case basis, that the public interest would be better served by the application being acted on by the City Council. Public hearings are only required when the Community Development Director requests action by the City Council.

The following findings are required to approve SDP applications:

1. The use or project proposed is consistent with the General Plan;

2. The use, activity or improvement(s) proposed is consistent with the provisions of the Zoning Code;

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 28

3. The approval of the permit application is in compliance with the requirements of the California Environmental Quality Act;

4. The location, size, design and operating characteristics of the proposed use will not create conditions or situations that may be incompatible with other permitted uses in the vicinity;

5. The approval of the permit application will not result in conditions or circumstances contrary to the public health and safety and the general welfare; and

6. The approval of the permit application is in compliance with all City-required public facilities regulations.

Given the typical nature of the findings required to approve SDP applications, the application of the SDP requirement only to larger-scale multi-family residential projects, the default level of review and approval resting with staff, the typical permit processing time of 2-3 months, and the ability for building plan review to occur concurrent with SDP processing, it is unlikely that this requirement would constrain housing supply, affordability, timing, or approval certainty.

2.7.2 Conditional Use Permit
Conditional Use Permits (CUPs) are required for some multi-family development, senior housing projects, and large residential care facilities, dependent upon the underlying zoning district. CUPs are not required for any of the “by-right” overlay zoning districts to be created through the Housing Element’s rezoning program.

CUP applications are acted upon by the City Council. A public hearing is required.

The following findings are required to approved CUP applications:

1. The use or project proposed is consistent with the General Plan;

2. The use, activity or improvement(s) proposed is consistent with the provisions of the Zoning Code;

3. The approval of the permit application is in compliance with the requirements of the California Environmental Quality Act;

4. The location, size, design and operating characteristics of the proposed use will not create conditions or situations that may be incompatible with other permitted uses in the vicinity;

5. The approval of the permit application will not result in conditions or circumstances contrary to the public health and safety and the general welfare; and

6. The approval of the permit application is in compliance with all City-required public facilities regulations.

PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 29
Again, the CUP requirement only applies to condominiums and apartments in existing residential zoning districts and would not apply to the “by-right” overlay zoning districts to be created through the Housing Element’s rezoning program. Although the CUP requirement does not affect the City’s housing supply, it could affect affordability, but not within the “by right” overlay zoning districts to be created through the Housing Element’s rezoning program.

2.8 BUILDING CODES
As required of all local governments in California, the City enforces the CBC. The CBC establishes construction standards necessary to protect public health, safety, and welfare and all new constructions and renovations must conform to the standards of the CBC.

Based on recommendations from the Orange County Fire Authority (OCFA), the City has adopted several amendments to the CBC, which revised the following chapters:
• Scope and administration;
• Definitions;
• General requirements;
• Emergency planning and preparedness;
• Fire service features;
• Fire protection and life safety systems;
• Construction requirements for existing buildings;
• Energy systems;
• Fruit and crop ripening;
• Fumigation and insecticidal fogging;
• Lumber yards and agro-industrial, solid biomass and woodworking facilities; • Requirements for wildland-urban interface fire areas; • Hazardous materials;
• Explosives and fireworks;
• Flammable and combustible liquids;
• Flammable gases and flammable cryogenic fluids;
• Referenced standards; and
• The various appendices.

More information on these changes can be found in the City’s Municipal Code. Compliance with the CBC, and the City’s locally adopted amendments to the CBC, should not significantly add to the cost of construction since the CBC is mandated to be enforced statewide and costs should be relatively uniform statewide. In addition, because the OCFA serves as a regional fire protection agency, the County of Orange and 22 other member cities have adopted substantially similar amendments, which means that the cost of complying with the City’s amendments to the CBC is substantially similar to most of the other cities in Orange County. Costs associated with the CBC and any locally adopted amendments are necessary to protect the health safety and welfare of the citizens.

Compliance ensures that all new or renovated buildings are structurally sound, have proper exiting, and are equipped with necessary fire protection features. In addition, the CBC mandates energy efficiency as well as provisions for access for persons with disabilities.

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 30
Since Fiscal Year 2015–16, the City has retained a qualified third-party consultant to conduct an annual study of the “nexus” between the City’s fees and the reasonable costs of building permitting.

Fees have generally been set at the City’s reasonable cost of providing services. Profit is not a component of the City’s building permit fees. The current building permit fee schedule and supporting fee study is available at https://www.cityoflagunawoods.org/government/transparencypublic-records/.

As incentives to develop affordable housing projects, the Housing Element includes three programs that will have a lessening effect on the City’s building permit fees. Program H-1.2.4 will reduce fees for qualifying lot consolidations, Program H-1.2.5 will waive or reduce fees for qualifying affordable housing projects subject to long-term affordability covenants, and Program H-2.2.2 will waive or reduce fees for improvements made to accommodate qualifying disabilities. Three other programs – H-1.2.8, H-2.1.2, and H-3.1.3 – involve the establishment of incentives that may include fee waivers or reductions for energy efficiency, affordability covenants, and affirmative marketing, respectively.

2.9 FEDERAL AND STATE REGULATIONS
Federal and State requirements may act as a barrier to the development or rehabilitation of housing, and affordable housing in particular. These include State prevailing wage requirements and environmental review requirements.

2.9.1 State Prevailing Wage Requirements
Labor Code Section 1720, which applies prevailing wage rates to public works of over $1,000, defines public works to mean construction, alteration, installation, demolition, or repair work done under contract and paid for in whole or in part out of public funds. For example, public transfer of an asset for less than fair market value, such as a land write-down, would be construed to be paid for in part out of public funds and trigger prevailing wage requirements.

While the cost differential in prevailing and standard wages varies based on the skill level of the occupation, prevailing wages tend to add to the overall cost of development. In the case of affordable housing projects, prevailing wage requirements could effectively reduce the number of affordable units that can be achieved with public subsidies. However, State law does allow a number of exceptions for single-family homes and for projects intended to support affordable housing, such as the construction or expansion of emergency shelters or construction of some types of affordable housing units.

2.9.2 Environmental Protection
Federal and State regulations require environmental review of proposed discretionary projects (e.g., subdivision maps, conditional use permits, etc.). Costs resulting from the environmental review process, such as costs related to the preparation of environmental analyses, increase the cost of housing and may be passed on to the consumer. Environmental review can also impact the processing time for project review due to mandated public review periods. However, the presence of these regulations helps preserve the environment and ensure environmental safety. Recent State laws have established exemptions from CEQA for infill and affordable housing projects. Due to the

PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 31
City’s predominantly built-out nature, it is anticipated that the majority of proposed projects would be in-fill and likely exempt from environmental review as urban infill projects.

2.9.3 State Transparency Requirements
AB 1483 requires the City to provide on its website a current schedule of fees, exactions, and affordability requirements imposed by the City applicable to a proposed housing development project, all zoning ordinances and development standards, and annual fee reports or annual financial reports, as specified. AB 1483 also requires the City to provide on its website an archive of impact fee nexus studies, cost of service studies, or equivalent, as specified.

The information provided on the City’s website complies with AB 1483.

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 32
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PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 33

3.0 MARKET CONSTRAINTS

3.1 AVAILABILITY OF FINANCING
The availability of financing in a community depends on a number of factors, including the type of lending institutions active in the community, lending practices, rates and fees charged, laws and regulations governing financial institutions, and equal access to those institutions.

Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose information on the disposition of loan applications and the income, gender, and race of loan applicants. A total of 1,112 households applied for mortgage loans for homes in the seven census tracts that include residential areas in Laguna Woods in 2019 (Table K). Overall, 62 percent of these applications were approved, 15 percent were denied, and 23 percent were either withdrawn or closed for incompleteness. Conventional financing involves market-rate loans provided by private lending institutions such as banks, mortgage companies, savings and loans, and thrift institutions. Of the 453 applications for conventional purchase loans, 70 percent were approved. The approval rate for government-backed loans was slightly higher at 72 percent, while the approval rate for refinance applications was 58 percent. Home improvement loan applications had the lowest approval rating, with 37 percent of applications being approved and 44 percent being denied.

Table K: Disposition of Home Purchase and Improvement
Loan Applications (2019)
Loan Type Total Applications Approved Denied Other
Government-Backed Purchase 39 72% 8% 20%
Conventional Purchase 453 70% 10% 20%
Refinance 545 58% 16% 26%
Home Improvement 75 37% 44% 19%
Total 1,112 62% 15% 23%
Source: Federal Financial Institutions Examination Council (FFIEC) Home Mortgage Disclosure Act Data Publication. (2019).

Note: “Other” includes files closed for incompleteness and applications withdrawn. Data covers the seven census tracts that include residential areas in Laguna Woods (Census Tracts 626.22, 626.25, 626.41, 626.46, 626.47, 626.48, and 626.49).

3.2 FORECLOSURES
Foreclosure occurs when households fall behind on one or more scheduled mortgage payments. The foreclosure process can be halted if the homeowner is able to bring their mortgage payments current. If payments cannot be resumed or the debt cannot be resolved, the lender can legally use the foreclosure process to repossess (take over) the home. When this happens, the homeowners must move out of the property. If the home is worth less than the total amount owed on the mortgage loan, a deficiency judgment could be pursued. If that happens, the homeowner would lose their home and also would owe the home lender an additional amount.

Between 2000 and 2005, with low interest rates, “creative” financing (e.g., zero down, interest only, adjustable loans), and predatory lending practices (e.g., aggressive marketing, hidden fees, negative amortization), many households purchased homes that were beyond their financial means. Under

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 34
the false assumptions that refinancing to lower interest rates would always be an option and home prices would continue to rise at double-digit rates, many households were unprepared for the hikes in interest rates, expiration of short-term fixed rates, and decline in sales prices that set off in 2006.

Suddenly faced with significantly inflated mortgage payments, and “upside-down” mortgage loans (that are larger than the worth of the homes), many had to resort to foreclosing their homes.

However, since the Great Recession, foreclosure rates have come down significantly. As of June 2021, there was only one home in Laguna Woods in some stage of foreclosure. The foreclosure rate was less than 0.01 percent for Laguna Woods as well as for Orange County as a whole.5

3.3 DEVELOPMENT COSTS

3.3.1 Land Availability and Cost
The availability and price of land represents a significant market constraint to housing production throughout most of Southern California. This constraint is particularly acute in communities, such as Laguna Woods, where there is very little residentially designated vacant land. In June 2021, based on a survey of online real estate listings, there were no vacant properties listed for sale within Laguna Woods. Due to limited land availability, most new residential development in Laguna Woods will involve redeveloping properties with existing uses, which tends to add to the cost of land.

Density bonuses are available for projects that include affordable housing. Developers of affordable housing may also be granted regulatory concessions or development incentives. Density bonuses, together with the incentives and/or concessions, result in a lower average cost of land per dwelling unit thereby making the provision of affordable housing more feasible.

3.3.2 Cost of Construction
The cost of labor and building materials has a significant impact on the overall cost of new housing and can, therefore, be a constraint to affordable housing development. According to the National Association of Home Builders Construction Cost Survey, construction costs (including labor and materials) account for over 55 percent of the sales price of a new single family home. The Construction Cost Survey found that the average construction cost for a single family home in 2017 was $237,760. It should be noted that the Construction Cost Survey is a national survey and may not be completely representative of Laguna Woods or Orange County; however, it does illustrate that construction costs comprise a significant proportion of the ultimate sales price of residential development. While significant, construction costs are consistent throughout the region and therefore would not specifically constrain housing development in Laguna Woods when compared to other cities in the region.

A reduction in amenities and the quality of building materials (above a minimum acceptability for health, safety, and adequate performance) can result in lower development costs. As part of the City’s density bonus and inclusionary housing programs, the City allows affordable units to be smaller in size (maintaining the same number of bedrooms) and could also consider allowing less 5 Realtytrac.com (accessed June 2021).

PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 35
costly features and interior finishes, provided all project units were comparable in construction quality and exterior design.

Another factor related to construction costs is the number of units built at one time. As that number increases, overall costs generally decrease as builders are able to take advantage of the benefits of economies of scale.

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 36
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PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 37

4.0 INFRASTRUCTURE CONSTRAINTS
The availability of public infrastructure and services for residential development is another potential constraint to the development of housing. The majority of Laguna Woods is highly urbanized and built-out with most of the necessary infrastructure, streets, electrical lines, and water distribution already in place. This section provides an overview of potential utility service constraints.

4.1 WATER
Laguna Woods is served by the El Toro Water District (ETWD), a public water service agency. Water provided in the El Toro Water District is nearly entirely dependent on imported water. Imported water is transported via a blend of water from the Colorado River and the Sacramento Bay Delta via the State Water Project. Both sources of import water are transported from hundreds of miles through a series of tunnels, aqueducts and pipelines to reach Orange County, and are distributed by the Metropolitan Water District (MWD) of Southern California, the region’s wholesale water provider. ETWD purchases this imported water from the MWD through the Municipal Water District of Orange County. ETWD has taken a leading role in improving local water supply reliability for south Orange County. Together with the Santa Margarita Water District and the Moulton Niguel Water District, ETWD maintains and operates a large covered drinking water reservoir with a capacity of 275 million gallons. In the event of an emergency or unplanned interruption of water service, the reservoir could provide a 14-day supply of water to ETWD customers.

According to ETWD’s Draft 2020 Urban Water Management Plan (UWMP), water use within its service area was 7,167 acre-feet of potable water and 1,270 acre-feet of recycled water for landscape irrigation in 2019. A stable trend is expected because ETWD’s service area is predominantly built-out and the rate of population growth is small (about 0.23 percent per year).

Water conservation efforts also kept per capita water use down. The total service demand was expected to increase to 8,737 acre-feet by 2025 and projected to increase to 9,156 acre-feet by 2045. According to the UWMP, ETWD’s system is expected to have the ability to supply 9,156 acrefeet of water in 2045, meeting the projected demands. ETWD’s demand projections consider such factors as current and future demographics, future water use efficiency measures, and long-term weather variability, and specifically take into account the additional housing units that each of the cities within its service area must plan for as part of the RHNA requirements. Therefore, adequate water supply is available to accommodate the RHNA during the Housing Element planning period.

SB 1087 requires that water providers develop written policies that grant priority to proposed development that includes housing affordable to lower-income households. The legislation also prohibits water providers from denying or conditioning the approval of development that includes housing affordable to lower income households, unless specific written findings are made. The City will provide a copy of the adopted Housing Element to ETWD after adoption and will continue to coordinate with ETWD to ensure priority service provision to affordable housing developments.

4.2 WASTEWATER
Wastewater in Laguna Woods is collected, treated, and disposed of by ETWD’s Wastewater Treatment Plant (WTP), which has a maximum capacity of 6 million gallons per day. In addition,

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 38
ETWD operates a Water Recycling Plant (WRP), which allows it to reuse much of its wastewater effluent as recycled water by applying a tertiary treatment process. The WTP and WRP serve portions of the cities of Laguna Hills, Mission Viejo, Aliso Viejo, Lake Forest and all of Laguna Woods.

ETWD has been able to meet its water demands from a combination of water resources and technology that optimally promote use of water conservation practices, water importation and recycled water treatment and delivery. In 2012, ETWD began a Recycled Water Expansion Project to increase the treatment and delivery of recycled water through a new tertiary treatment facility. The tertiary treatment plant is designed to produce as much as 3.7 million gallons of recycled water per day with a peak hour pumping capacity of over 5,000 gallons per minute. The WRP expansion was designed with the ability to expand capacity up to the expected maximum amount of raw wastewater entering the plant. Simultaneously, ETWD built a new recycled water distribution system that includes 140,000 ft of recycled water pipelines beneath the roadways in portions of Laguna Woods and the northwest portion of Laguna Hills. Therefore, there are no constraints on the availability of wastewater disposal or treatment.

SB 1087 mandates priority sewage collection and treatment service to housing developments providing units affordable to lower-income households. The City will provide a copy of the adopted Housing Element to ETWD after adoption. The City will continue to coordinate with ETWD to ensure priority service provision to affordable housing developments.

4.3 TRANSPORTATION INFRASTRUCTURE
In 1990, Orange County voters approved Measure M, the Revised Traffic Improvement and Growth Management Ordinance, which provides funding to Orange County for needed transportation improvements over a 20-year period through the imposition of a one-half cent retail transaction and use tax. In 2006, voters extended the tax through 2041 (Measure M2). Cities such as Laguna Woods can qualify for Measure M funds if they comply with the Countywide Growth Management Program component requirements and have an established policy framework for that program. As part of complying with the Countywide Growth Management Program component requirements, Laguna Woods implemented a development mitigation program that established a fee structure for requiring new development to pay its proportionate share funding of impacts to the regional roadway system.

In order to assist with the long-term development of funding for major capital improvement projects on public property, the City Council adopts a minimum 7-year Capital Improvement Program (CIP) on an annual basis. The CIP and the minimum 7-year period to which it applies is also a requirement for receiving funding from Measure M2.

In addition, the City is within the SJHTCA fee assessment area. The payment of development impact fees is required as a condition of approval of a final parcel or tract map or as a condition of issuing a building permit on any properties within the fee assessment area, as authorized by Government Code Section 66484.3. These development impact fees are collected for the purpose of repaying the indebtedness incurred to construct the San Joaquin Hills Transportation Corridor (State Route 73) that has already been built, as well as to pay the cost of future anticipated improvements and ongoing planning and environmental requirements.

PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 39
Fees are collected on new residential dwellings and new non-residential square footage in areas identified as the area of benefit surrounding the corridor. While most of Laguna Woods is within Area of Benefit Zone A for the SJHTCA, certain northerly portions of Laguna Woods are within Area of Benefit Zone B. Table L provides a summary of the current (2022) development impact fees assessed within those areas. In 1997, the SJHTCA Board of Directors adopted a set rate of increase for the fees. Each July 1, rates for the SJHTCA increase by 2.667 percent.

Table L: San Joaquin Hills Transportation Corridor
Development Impact Fees (2022)
Zone A Zone B
Single Family Residential $6,211/unit $4,814/unit
Multi-Family Residential $3,618/unit $2,808/unit
Source: Transportation Corridor Agencies (2022).

Note: In 1997, the San Joaquin Hills Transportation Corridor Agency Board of Directors adopted a set rate of increase for the fees. Each July 1, rates increase by 2.667 percent.

While the traffic mitigation fees described above may present a constraint to housing development, they are necessary to facilitate the ongoing maintenance of transportation infrastructure.

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 40
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PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 41

5.0 ENVIRONMENTAL CONSTRAINTS
A wide range of environmental factors may constrain the development of new housing. Areas of special environmental significance, potential safety hazards, and development constraints have influenced and will continue to influence land use policy. The City’s Safety Element identifies areas subject to a number of environmental constraints, including flooding, seismic hazards, hazardous and toxic materials, and urban fires. The City’s General Plan recognizes those hazards and identifies programs to minimize them.

5.1 FLOODING
The Federal Emergency Management Agency (FEMA) publishes maps that identify areas of the City subject to flooding in the event of a major storm. Those Flood Insurance Rate Maps (FIRMs) indicate areas that may be inundated in the event of a 100-year or a 500-year storm. In addition, the maps indicate the base flood elevations at selected intervals of the floodway. The flood map contained in the City’s Safety Element indicates that very few areas are within 100-year flood event inundation areas. Areas are limited to the small reservoir southeast of the intersection of Moulton Parkway and Ridge Route Drive, the 9 Hole Par 3 Golf Course in Laguna Woods Village, and Aliso Creek in the southeastern portion of Laguna Woods. The projected 500-year flood would most significantly affect low-lying areas along Aliso Creek.

Additional flood hazards include the four reservoirs with a total maximum capacity of 10 million gallons of potable water distributed throughout Laguna Woods. Two of these reservoirs are located at a high point northwest of the intersection of El Toro Road and Moulton Parkway, and two are located in Laguna Woods Village (one at the south end of Calle Sonora Este and another on the west side of Bahia Blanca West). The dam/reservoir located southeast of the intersection of Moulton Parkway and Ridge Route Drive (Rossmoor #2) is located in a 100-year floodplain but is not subject to State dam inundation mapping regulations. The Veeh Reservoir located nearby in the City of Laguna Hills is also within a 100-year floodplain. According to the City’s Safety Element, failure of any of the previously mentioned ETWD infrastructure could cause localized flooding.

The Moulton Niguel Water District owns and operates a water tank in the City of Aliso Viejo just south of the intersection of El Toro Road and Aliso Creek Road. Failure of that water tank could cause flooding on El Toro Road and in the lower portions of Woods End Wilderness Preserve.

The failure of the bridge along Avenida Sevilla that crosses Aliso Creek could impede movement and cause localized flooding on property in Laguna Woods Village. Flood hazards in Laguna Woods pose a moderate risk. Areas designated for future residential development will be evaluated on an individual basis regarding their potential flood hazard.

5.2 SEISMIC AND GEOLOGIC HAZARDS
As stated in the City’s Safety Element, the entirety of Laguna Woods—as well as all of Southern California—is located within a seismically active region that has been subject to major earthquakes in the past. There are no known faults in Laguna Woods. However, the Newport-Inglewood, Whittier-Elsinore, Glen Ivy Elsinore, and Temecula-Elsinore faults are located within close proximity

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 42
to Laguna Woods. The closest fault—Newport-Inglewood—traverses approximately 7-8 miles southwest of Laguna Woods. The San Andreas and San Jacinto faults are located much further away from Laguna Woods (the San Jacinto Fault crosses the region approximately 40 miles northeast of Laguna Woods and the San Andreas Fault is even farther away [approximately 50 miles northeast]).

Although farther away, those faults have the potential to deliver larger magnitude earthquakes than the other five faults mentioned above. Other major faults may be buried under alluvium, or fault traces may have been obliterated due to natural weathering.

Liquefaction is another hazard associated with intense ground shaking, in which the soil can destabilize and if sufficient water is present in the soil, the soil and water can mix. The City’s Safety Element includes a map that identifies liquefaction hazard zones. Most of the approximately 256 acres that are within the identified liquefaction hazard zones are in the southeastern portion of Laguna Woods; however, small areas that are subject to liquefaction hazards also exist in the northern and western part of Laguna Woods. Areas within these hazard zones may experience liquefaction during extreme ground shaking.

Landslides, which can occur as a result of seismic activity or as an independent event, have the potential to cause loss of life, personal injury, economic loss, and property damage in Laguna Woods. The City’s Safety Element includes a map that shows the locations of the approximately 77 acres that are prone to earthquake-induced landslides. Most of the areas that are subject to landslides are in the western half of Laguna Woods.

5.3 WILDFIRES
According to the City’s Safety Element, wildfires in the open space and wildland-urban interface area that borders the westernmost edge of Laguna Woods could cause loss of life, personal injury, and extensive property damage, including damage to open space resources. Consequently, fires are considered to pose a very significant risk. In 2012, the City Council designated three fire hazard severity zones (very high, high, and moderate) within the wildland-urban interface area shown in the Safety Element. The Very High Fire Hazard Severity Zone was identified by the California Department of Forestry and Fire Protection (CAL FIRE), while the High and Moderate Fire Hazard Severity Zones were identified by OCFA based on an assessment of vegetation, slope, fire history, weather patterns, and impact of flames, heat, and flying embers. Collectively, those zones and the 2,564 residential dwelling units within them face the highest risk of wildfire impacts. However, OCFA has developed a number of resources that are intended to mitigate fire risk through vegetation management, including technical guidelines for developing fuel modification plans for new construction projects and maintaining and managing vegetation on properties within fire hazard areas.

5.4 NOISE
Noise generated from mobile sources such as traffic on City streets and Interstate 5 (I-5) and aircraft flyovers will continue to have the greatest potential impact on the City’s land use decisions. The City’s Noise Element describes the existing noise environment using maps that identify several areas with high levels of noise. The Noise Element also identifies noise sources and contains goals and policies that will be useful in reducing the effects of noise, if not the actual intensity of noise. Land

PROPOSED
MARCH 2023 C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit B - 43
use policy discourages the placement of noise-sensitive land uses in areas that are subject to high noise levels. The City requires new housing developments to provide an acoustic analysis and provide necessary mitigation, such as barriers or additional sound insulation, for projects located within the 65 CNEL noise contour zones identified in the Noise Element. According to the Noise Element, areas adjacent to the following road segments are either already within the 65 CNEL noise contour or are projected to be in future General Plan build-out:
• El Toro Road (Aliso Creek Road to Paseo de Valencia)
• Moulton Parkway (Gate 12 south to City limits)
• Santa Maria Avenue (Avenida Sosiega to Santa Vittoria Drive)

PROPOSED

C ONSTRAINTS ANALYSIS

L AGUNA WOODS , C ALIFORNIA
MARCH 2023
Exhibit B - 44
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PROPOSED
March 2023

EXHIBIT C

HOUSING SITES INVENTORY AND ANALYSIS

CITY OF LAGUNA WOODS

PROPOSED
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PROPOSED
March 2023

HOUSING SITES INVENTORY AND ANALYSIS

CITY OF LAGUNA WOODS
Submitted to:

City of Laguna Woods
24264 El Toro Road
Laguna Woods, California 92637
Prepared by:

LSA
20 Executive Park, Suite 200
Irvine, California 92614
(949) 553-0666

PROPOSED
Project No. LWD2101
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PROPOSED
MARCH 2023 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - i

TABLE OF CONTENTS
Table of Contents.................................................................................................................................... i List of Abbreviations and Acronyms...................................................................................................... iii

1.0 INTRODUCTION................................................................................................... 1

2.0 STATE REGULATIONS........................................................................................... 2

2.1 Assembly Bill 1397................................................................................................................ 3

2.2 Assembly Bill 686.................................................................................................................. 3

3.0 OVERVIEW OF POTENTIAL HOUSING SITES .......................................................... 4

4.0 METHODOLOGY USED TO IDENTIFY SITES.......................................................... 13

5.0 ENVIRONMENTAL CONSTRAINTS AND ADEQUATE INFRASTRUCTURE ................ 18

5.1 Environmental Constraints................................................................................................. 18

5.2 Infrastructure Constraints.................................................................................................. 18

5.3 General Land Use Considerations ...................................................................................... 21

5.4 Access to Community Resources........................................................................................ 21

5.5 Energy Conservation Opportunities................................................................................... 23

5.5.1 City Efforts..........................................................................................................................23

5.5.2 Other Resources.................................................................................................................25

6.0 FAIR HOUSING ISSUES ....................................................................................... 26

6.1 Proposed Sites.................................................................................................................... 26

6.2 Poverty Status..................................................................................................................... 28

6.3 Diversity Index .................................................................................................................... 28

6.4 Healthy Places .................................................................................................................... 33

6.5 Social Vulnerability ............................................................................................................. 33

6.6 Tax Credit Allocation Committee Opportunity Areas......................................................... 39

6.7 Regional Opportunity Index ............................................................................................... 43

6.8 Disability ............................................................................................................................. 43

6.9 Family Status ...................................................................................................................... 44

6.10 Income................................................................................................................................ 46

6.11 Race and Ethnicity .............................................................................................................. 47

6.12 Local Data and Knowledge ................................................................................................. 50

6.12.1 Age and Income Restrictions..............................................................................................50

6.12.2 Property Ownership Implications.......................................................................................51

6.12.3 Environmental and Topography Constraints......................................................................51

6.12.4 Relevant Factors Contributing to Fair Housing...................................................................52

6.13 Concluding Analysis............................................................................................................ 52

7.0 REALISTIC DEVELOPMENT CAPACITY ................................................................. 54

8.0 QUANTIFIED OBJECTIVES................................................................................... 58

PROPOSED

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit C - ii

FIGURES AND TABLES

FIGURES
Figure 1: Housing Sites Key Map...........................................................................................................11 Figure 2: Poverty Status........................................................................................................................29 Figure 3: Diversity Index........................................................................................................................31 Figure 4: Healthy Places Index ..............................................................................................................35 Figure 5: Social Vulnerability Index.......................................................................................................37 Figure 6: TCAC Opportunity Areas........................................................................................................41 TABLES
Table A: City of Laguna Woods Housing Needs Allocation (2021–2029) ...............................................2 Table B: Site Descriptions........................................................................................................................5 Table C: Application of Methodology Used to Identify Sites................................................................16 Table D: Environmental and Site Constraints.......................................................................................19 Table E: Potential Overlay Zoning Districts...........................................................................................21 Table F: Potential Housing Units during 2021–2029 Planning Period ..................................................26 Table G: Recently Developed Housing in Nearby Cities........................................................................27 Table H: Domains and Lists of Indicators for Opportunity Maps..........................................................39 Table I: Disability Trends.......................................................................................................................43 Table J: Family Status Trends................................................................................................................45 Table K: Income Trends.........................................................................................................................46 Table L: Race and Ethnicity Trends .......................................................................................................48 Table M: Race and Ethnicity Trends (2006–2010 ACS to 2015–2019 ACS) ..........................................49 Table N: Potential Housing Unit Production.........................................................................................56 Table O: Summary of Quantified Objectives ........................................................................................58

PROPOSED
MARCH 2023 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - iii

LIST OF ABBREVIATIONS AND ACRONYMS
AB Assembly Bill
ACS American Community Survey
AFFH Affirmatively Furthering Fair Housing
APN Assessor’s Parcel Number
CALGreen California Green Building Standards Code
CARE California Alternate Rates for Energy
CDC Centers for Disease Control and Prevention
CF-P Community Facilities—Private
City City of Laguna Woods
du/ac dwelling unit per acre
ETWD El Toro Water District
FERA Family Electric Rate Assistance
FHEO Fair Housing Enforcement and Outreach
Golden Rain Foundation Golden Rain Foundation of Laguna Woods HCD California Department of Housing and Community Development HPI Healthy Places Index
HUD United States Department of Housing and Urban Development LIHTC Low Income Housing Tax Credit
MFI median family income
OCTA Orange County Transportation Authority
PA Professional and Administrative Office
PHASC Public Health Alliance of Southern California
RHNA Regional Housing Needs Assessment
ROI Regional Opportunity Index

PROPOSED

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit C - iv
SB Senate Bill
SCAG Southern California Association of Governments
SCE Southern California Edison
SVI Social Vulnerability Index
SVUSD Saddleback Valley Unified School District
TCAC Tax Credit Allocation Committee
UWMP Urban Water Management Plan

PROPOSED
MARCH 2023 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 1

1.0 INTRODUCTION
State Housing Element law requires local governments to adequately plan to meet their existing and projected housing needs, including their share of the Regional Housing Needs Assessment (RHNA) allocation. Government Code Section 65583(a)(3) requires local governments to prepare an inventory of land suitable for residential development, which is used to identify sites that can be developed for housing within the planning period. This report has been prepared to satisfy Government Code Section 65583(a)(3).

PROPOSED

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit C - 2

2.0 STATE REGULATIONS
State law recognizes the vital role local governments play in the availability, adequacy, and affordability of housing. Every city and county in California is required to adopt a long-range General Plan to guide its physical development; the Housing Element is one of the seven mandated elements of the General Plan. State Housing Element law mandates that local governments adequately plan to meet the existing and projected housing needs of all economic segments of the community. The law recognizes that in order for the private market to adequately address housing needs and demand, local governments must adopt land use plans and regulatory systems that provide opportunities for (and do not unduly constrain) housing production. Housing Element statutes also require the California Department of Housing and Community Development (HCD) to review local housing elements for compliance with state law and to report its findings to the local government.

State Housing Element law requires that each local government develop local housing programs to meet its “fair share” of existing and future housing needs for all income groups. The Southern California Association of Governments (SCAG) is responsible for developing and assigning these regional needs, via the RHNA process, to Southern California jurisdictions including the City.

Government Code Section 65583(a)(3) requires that local governments prepare an inventory of land suitable for residential development, including vacant sites and sites having the potential for redevelopment, and an analysis of the relationship of zoning and public facilities and services to those sites. This parcel-level inventory of sites with near-term residential development potential has been prepared in support of the City’s efforts to update its Housing Element.

The City’s fair share for the planning period between October 2021 and October 2029 was established by SCAG at 997 units divided into four income groups as shown in Table A. That housing needs allocation was based on projected household growth and the resulting need for construction of additional housing units allocated over an 8-year planning period (2021–2029).

Table A: City of Laguna Woods Housing Needs Allocation (2021–2029) Income Level Percent of Area MFI No. of Units
Very Low 0–50% 127
Low 51–80% 136
Moderate 81–120% 192
Above Moderate >120% 542
Total 997
Source: SCAG 6th Cycle Final RHNA Allocation Plan (approved by HCD on March 22, 2021).

HCD = California Department of Housing and Community Development MFI = median family income
RHNA = Regional Housing Needs Assessment
SCAG = Southern California Association of Governments
It should be noted that the City’s housing needs allocation for the 2021–2019 planning period (997 units) is substantially higher than its allocation during the previous planning period (2 units).

PROPOSED
MARCH 2023 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 3

2.1 ASSEMBLY BILL 1397
Pursuant to Assembly Bill (AB) 1397, cities must determine if more than 50 percent of the lowerincome RHNA would be accommodated on nonvacant sites. When a city relies on nonvacant sites to accommodate 50 percent or more of its housing need for lower-income households, the methodology used to determine additional development potential must demonstrate that the existing use identified does not constitute an impediment to additional residential development during the period covered by the Housing Element. An existing use is presumed to impede additional residential development, absent findings based on substantial evidence that the use is likely to be discontinued during the planning period (Government Code Section 65583.2(g)(2)).

2.2 ASSEMBLY BILL 686
Pursuant to AB 686, for Housing Elements due on or after January 1, 2021, sites must be identified throughout the community in a manner that affirmatively furthers fair housing opportunities (Government Code Section 65583(c)(10)). According to Government Code Section 8899.50(a)(1), affirmatively furthering fair housing means “taking meaningful actions, in addition to combating discrimination, that overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics.” Specifically, affirmatively furthering fair housing means taking meaningful actions that, taken together, address significant disparities in housing needs and in access to opportunity; replacing segregated living patterns with truly integrated and balanced living patterns; transforming racially and ethnically concentrated areas of poverty into areas of opportunity; and fostering and maintaining compliance with civil rights and fair housing laws. For purposes of this Housing Sites Inventory and Analysis, this means that the sites identified to accommodate the lower-income need must not be concentrated in low-resourced areas (areas that lack access to high-performing schools, are not close to jobs, and/or are disproportionately exposed to pollution or other health impacts) or areas of segregation and concentrations of poverty. Instead, the sites identified to accommodate the lower-income need must be distributed throughout the community in a manner that affirmatively furthers fair housing.

PROPOSED

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit C - 4

3.0 OVERVIEW OF POTENTIAL HOUSING SITES
The City has identified 17 potential sites that appear to be viable for near-term housing development that would help the City meet its RHNA requirements. Table B provides a brief description of each site and its corresponding Assessor’s Parcel Numbers (APNs), along with a description of the existing uses on each site, the surrounding land uses, the parcel size, and the existing General Plan land use and zoning designations on each site. The 17 sites are distributed throughout the community as shown in Figure 1, Housing Sites Key Map.

PROPOSED
MARCH 2023 H OUSING S ITES INVENTORY AND ANALYSIS

L AGUNA WOODS , C ALIFORNIA
Exhibit C - 5
Table B: Site Descriptions
Site Description/APN Existing Uses/Background
Information Surrounding Uses Vacant? Parcel
Size
Current
General Plan
Land Use
Designation
Current Zoning
1 Town Centre Vacant
Lot
(APN 616-012-29)
• Undeveloped.
• Site slopes downward from
north to south, with most of
the developable area on this
parcel being 30 to 50 feet
above El Toro Road.

North: El Toro Water District
facility—water well property
(one-story structures and water
tanks)
Yes 1.8 ac Commercial Community
Commercial
East: Laguna Hills Animal Hospital
and Laguna Woods Self Storage
(one- and two-story structures)
South: Laguna Woods Village
water detention basin—vacant
property
West: Medical office building
within Town Centre (three-story
structure)
2 Pacific Hills Calvary
Chapel Parking Lot
(APN 621-131-38)
Currently developed as a surface
parking lot for the adjacent
Pacific Hills Calvary Chapel in
neighboring Aliso Viejo.

North: vacant land, Laguna
Country United Methodist Church
(one-story structures)
No 0.696 ac Commercial Professional &
Administrative
Office
East: Laguna Country United
Methodist Church, Pacific Hills
Calvary Chapel (in Aliso Viejo) (all
one-story structures)
South: vacant land, Pacific Hills
Calvary Chapel (in Aliso Viejo) (all
one-story structures)
West: vacant land

PROPOSED

H OUSING S ITES INVENTORY AND ANALYSIS
L AGUNA WOODS , C ALIFORNIA MARCH 2023
Exhibit C - 6
Table B: Site Descriptions
Site Description/APN Existing Uses/Background
Information Surrounding Uses Vacant? Parcel
Size
Current
General Plan
Land Use
Designation
Current Zoning
3 Rossmoor Electric
(APN 621-131-21)
Currently developed as a
commercial use with a small
number of office and storage
uses.