Town Council Special Meeting Agenda
Thursday, July 27, 2023, 5:00 p.m.
The Westin Monache Resort Mammoth
50 Hillside Drive
Redfir and Foxfir Meeting Roooms
Mammoth Lakes, CA 93546
Members of the Town Council:
Mayor John Wentworth, Mayor Pro Tem Bill Sauser, Councilmember Chris Bubser, Councilmember Sarah Rea, Councilmember Amanda Rice
NOTE: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Town Clerk at (760) 965-3602. Notification prior to the meeting will enable the Town to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 13.102-35.104 ADA Title II)
NOTE: Materials related to an item on this agenda submitted after distribution of the agenda packet are available for public inspection in the Town Offices located at 437 Old Mammoth Road, Suite 230 during normal business hours. Such documents are also available on the Town of Mammoth Lakes website at www.townofmammothlakes.ca.gov subject to staff’s ability to post the documents before the meeting.
1. CALL TO ORDER AND ROLL CALL
2. PLEDGE OF ALLEGIANCE
3. PUBLIC COMMENTS
The Public Comment portion of the agenda provides the public with an opportunity to address the Town Council on matters not otherwise listed on the agenda. Under California law the Town Council is prohibited from generally discussing or taking action on items not included in the agenda; however, the Town Council may briefly respond to comments or questions from members of the public. Therefore, the Town Council will listen to all public comment, but will not generally discuss the matter or take action on it. Requests for service from the Town may also be made at the Town offices during regular business hours.
Members of the public desiring to speak on a matter appearing on the agenda should ask the Mayor for the opportunity to be heard when the item comes up for Council consideration.
4. POLICY MATTERS
4.1 Town Council Housing Program Update and Solutions Public Workshop.
5. ADJOURNMENT
The Town Council will adjourn to a regular meeting to be held on Wednesday, August 2, 2023 at 4:00 p.m.
1 TOWN COUNCIL STAFF REPORT
Title: Town Council Housing Program Update and Solutions Public Workshop.
Meeting Date: July 27, 2023
Prepared by: Daniel C. Holler, Town Manager
Sandra Moberly, Community and Economic Development Director Haislip Hayes, Public Works Director
Nolan Bobroff, Senior Planner/Housing Coordinator
RECOMMENDATION:
As a Public Workshop no Council action is required.
BACKGROUND:
Town Council is hosting a Public Workshop to provide information and consider solutions related to the lack of housing in Mammoth Lakes. The lack of available/affordable housing continues to be expressed by residents and businesses. The Workshop will be held at the Westin Monache Resort, located at 50 Hillside Drive, in the Redfir/Foxfir conference rooms. The Room will be open at 4:30 pm, with the meeting starting at 5:00 pm. This will be a facilitated workshop focused on engaging the public in the housing discussion. Stacy Corless with Sierra Business Council will be the facilitator. Comments from Council will be solicited through the process, but no formal action will be taken. The focus of the workshop is on housing needs and programs in the Town of Mammoth Lakes, actions taken by or supported by the Town, and local partnership programs with Mammoth Lakes Housing.
The Workshop will be structured around three sessions, with each to include Presentation/Breakout Discussion/Report Out. The first session will be a review of the current Town Housing Now! Initiative and the programs that are being implemented.
The second session will look at opportunity sites that may be considered for future planning and housing development. The sites incorporate low to high density alternatives and other amenities along with housing development. The focus is generally on sites the Town owns or has potential partners in development.
The third session will review the status of Short-Term Rentals (STRs) in the Town. The pros and cons of STRs are being discussed in communities across California and around the nation. Communities are looking at economic, housing, visitor, and social impacts. The discussion will include an update on the Town’s current program and potential management actions that may be considered.
2 Information from the community workshop will be collected and used to inform future Council discussion and potential actions.
ANALYSIS:
In preparing for the Workshop staff reviewed previous housing reports including the Community Housing Action Plan (CHAP), the Housing Needs Study, and the Town’s General Plan Housing Element. The conditions and needs identified in the previous planning documents continue to be valid today. In summary, this includes the following:
CHAP Review
Existing conditions:
Existing rental capacity cannot accommodate new workers filling jobs Availability of long-term rentals have decreased
Shortage of homes for sale (especially affordable units to “middle income” or “moderate/low income” households
Increased competition for housing
Increased prices, decreased affordability
Increase of employee in-commuting
Increased unfilled jobs
Challenges to addressing housing needs in Mammoth Lakes:
Low unemployment rates (Lots of jobs available)
Lack of Economic Diversification (dominated by hospitality, retail, service, and government sectors)
Profitability of STR business model
High seasonality of employment
Restricted land availability
High housing development costs
Poor condition of older housing stock
Lack of utilization of existing housing stock for “workforce” Estimated need – 600 units (split between for sale and rental and mix of income levels)
Responding to Community Comments
The ongoing need for a diversified approach to addressing housing needs in Mammoth Lake is captured in the types of comments that staff and Councilmembers have received.
A representative set of comments include:
Health Care employee – Accepted Job – had to turn it down as employee could not find suitable housing.
Education – Family makes just over the affordability limits to qualify for subsidized affordable housing, now considering leaving the area due to lack of housing.
3 Employer – Unless I can provide housing for summer employees (part-time) they will not accept the positions offered (similar challenge for winter employees). Employer – Without suitable housing (quality and cost) I am not able to secure part-time or even full-time employees.
Federal Employee – Cannot accept the job offer due to the lack of attainable housing.
Employee – I have interim housing but need to secure permanent housing (added comment - that allows me to have a fenced yard for pets). Employee – Leaving my position to move to another city where we can afford a single-family home.
Employee – My housing has been sold and I have received my eviction notice. Employee – I have chosen to live in my van, where do I find a safe, legal place to park?
SUMMARY
The Town’s response to the housing needs expressed in the CHAP and by residents and businesses resulted in the implementation of the Housing Now! Initiative and the various programs that Initiative offers. The corner stone of the initiative was the purchase of the “Parcel” and starting the first phase of construction consisting of 81 units. The primary focus of the Town’s efforts has been on long term solutions by increasing the supply of affordable housing, protecting existing low-income housing units, and increased affordable home ownership for “missing middle” income households. The Town continues to partner with Mammoth Lakes Housing on rental projects and down payment assistance for lower income residents.
The total impact of programs being implemented by the Town while making a difference, will not be fully realized for some time. Since the CHAP was completed, the Town has invested or committed over $30 million to housing programs. The incremental actions supported by this funding will have a greater impact over the next several months as new housing units become available. The Town is committed to continued investment, with a focus on long-term sustainability of creating attainable, community workforce housing.
Information gained from this workshop will assist in future management actions and investment of time and resources to address our community housing needs.
Facilitator Introduction
Stacy Corless, Sierra Business Council (SBC)
Government & Community Affairs DirectorAbout SBCHistory with Town of Mammoth Lakes SBC facilitation at 2017 Community Housing Action Plan Process What is facilitation
Workshop Goals
1. Be part of our local housing solution!
2. Learn about current Town of Mammoth Lakes housing programs
3. Provide feedback on current housing programs
4. Contribute to direction of future housing programs
Ground Rules
1. Participate in the workshop and exercises, individually and with your group
2. Be civil3. Be respectful4. Be creative and open to new ideas
5. Use comment cards to share your thoughts outside the group exercises
Process & Paper
What the colors and sizes of paper mean!
White 11x17 = Group Responses, to be collected by Town staff Pink 8.5x11 = Individual Comments, to be collected by Town staff Green 8.5x11 = Personal Reflections/Notes, not to be collected
ICEBREAKER
Interview Your Neighbor!Ask someone at your table to respond to this question in 1 minute or less:What brought you to Mammoth?
The Need
7 The Town needs housing!• Existing rentals cannot absorb new workers filling jobs• Long‐term rentals have decreased• Shortage of homes for sale (especially affordable units to “middle income” or “lower income” households
• Increased competition for housing• Increased prices, decreased affordability• Increase of employee in‐commuting • Increased number of unfilled jobs
595 units needed 330 Units to Catch‐Up
• 275 Units to Keep‐Up
Rental vs Ownership• 54% Rental Units (320 units)
• 46% Ownership Units (275 units)
Source: Housing Needs Assessment, 2017
Key Housing Terms
8 Affordable housing. Housing that is restricted to a rental rate or sales price for which the occupant(s) is/are payingapproximately 30 percent of their gross income for housing costs, adjusted for household size.Area Median Income (AMI). The household income for the median – or the middle – household in a region (Mono County). Income data is updated annually by HUD and HCD.Community Housing. Housing that is intended to be affordable for and occupied by residents of the community.Deed Restriction. A recorded contract entered into between the Town of Mammoth Lakes or its designee and theowner or purchaser of real property identifying the conditions of occupancy and resale.Housing Element. A required element of all California city general plans, housing elements identify and analyzehousing needs and include goals, objectives, policies and programs for providing a city’s fair share of affordablehousing needs. Although state law mandates that jurisdictions rezone enough land to meet their regional housingneeds allocation and each jurisdiction is required to have an approved housing element, jurisdictions retain localland use control and Housing Elements are only plans for housing.Missing Middle. Housing that is affordable to residents and the workforce earning over 80% AMI, yet cannot affordmarket‐rate housing. This generally refers to households earning between 80% AMI up to 200% AMI.
Workforce Housing. Housing that is restricted for rent or purchase by individuals and households working in the community of Mammoth Lakes. Workforce Housing is Affordable Housing for workers.
Area Median Income (AMI)
(Mono County)
9 INCOME LIMITS https://www.townofmammothlakes.ca.gov/DocumentCenter/View/11723 Household Size
1234567 8
Acutely‐Low (≤ 15% AMI) $10,050 $11,500 $12,900 $14,350 $15,500 $16,650 $17,800 $18,950 Extremely‐Low (16% ‐ 30% AMI) $17,850 $20,400 $24,860 $30,000 $35,140 $40,280 $45,420 $50,560 Very‐Low (31% ‐ 50% AMI) $29,750 $34,000 $38,250 $42,500 $45,900 $49,300 $52,700 $56,100Low (51% ‐ 80% AMI) $47,600 $54,400 $61,200 $68,000 $73,450 $78,900 $84,350 $89,800Median (81% ‐ 100% AMI) $67,050 $76,650 $76,200 $95,800 $103,450 $111,150 $118,800 $126,450 Moderate (101% ‐ 120% AMI) $80,450 $91,950 $103,450 $114,950 $124,150 $133,350 $142,550 $151,750 121% ‐ 150% AMI $100,600 $114,950 $129,350 $143,700 $155,200 $166,700 $178,200 $189,700 151% ‐ 200% AMI $134,100 $153,300 $172,450 $191,600 $206,950 $222,250 $237,600 $252,900 AMI is the householdincome for the median – orthe middle – household ina region (Mono County).The income data is updatedannually by the USDepartment of UrbanDevelopment (HUD) andthe CA Department ofHousing and CommunityDevelopment (HCD).
Based on CA Income Limits
Federal Median Income is $95,800
Current Town Projects and Programs
to Address the Housing Issues
Up to 450 affordable housing units
25 AcresTarget Income Level: ≤ 80% AMI (The Master Plan allows for income limits up to 120% AMI and allows for up to 15% of the total units within the development to be available to households earning 120‐200% AMI.)
Phase 181 rental units under construction (80 affordable units + 1 manager’s unit)
Studio, 1, 2, and 3‐bedroom units
Occupancy Winter 2023Public Park + Childcare Facility (34 children) Phase 2148 rental units (1‐2 manager’s units)
2 Development Phases (2.A and 2.B)
Studio, 1, 2, and 3‐bedroom units
Grading is anticipated to begin Fall 2023 (tentative)
Phase 3 (tentative)
49 for‐sale ownership units within 10 buildings2 Development Phases (3.A and 3.B) 2 and 3‐bedroom townhome units
The Parcel
11 Low Income Household(≤ 80% AMI)
1‐Person HH $47,600
2‐Person HH $54,500
3‐Person HH $61,200
4‐Person HH $68,000
5‐Person HH $73,450
60 Joaquin Road (0.20‐acre site)
4‐unit Design‐Build ProjectOwnership units$2.4M Bid Award (Site Acquisition: $200K) Target Income Level: 150% AMI
Construction began Summer 2023
Small Site Development
12 Above‐Moderate Household
(≤ 150% AMI)
1‐Person HH $100,600
2‐Person HH $114,950
3‐Person HH $129,350
4‐Person HH $143,700
5‐Person HH $155,200
Future Sites
Replicable model
1 site in escrowand looking for
other infill sites
Partnership Projects (MLH + Town)
13 • Access Apartments
(238 Sierra Manor Road)
• (11) 1‐br apartments• Targeting 80% AMI
Households
• Homekey Project – Innsbruck Lodge (913 Forest Trail)
• Convert hotel to residential use (15 affordable units + 1 manager’s unit) • Targeting those who are homeless and at‐risk of becoming homeless • 2 units will be restricted to households earning 30% AMI or below • Occupancy for remaining units determined by ‘greatest need’ • Occupancy Winter 2023
Low Income Household(≤ 80% AMI)
1‐Person HH $47,600
2‐Person HH $54,500
3‐Person HH $61,200
4‐Person HH $68,000
5‐Person HH $73,450
Bridge Program
14 • Convert Market‐Rate Unit Deed Restricted Affordable Unit • Deed restriction runs for 55 years and renews upon each sale• Target Income Level: 120% ‐ 150% AMI• Town Subsidy of $100K ‐ $150K / unit • 6 units acquired (Range of Studio –4‐br units)
• (5) have been sold to eligible households • (1) unit to be listed for‐sale soon $311,350
$405,900
$563,200
$358,600
$464,800
$642,000
$505,000
$739,375
$1,083,500
$‐ $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 120% AFFORDABLE PRICE
150% AFFORDABLE PRICE
200% AFFORDABLE PRICE
1‐BR MEDIAN CONDO (2021‐2022)2‐BR MEDIAN CONDO (2021‐2022)3‐BR MEDIAN CONDO (2021‐2022) Affordability Gap
1‐BR / 2‐BR / 3‐BR Condos
Moderate Household(≤ 120% AMI)1‐Person HH $80,450
2‐Person HH $91,950
3‐Person HH $103,450
4‐Person HH $114,950
5‐Person HH $124,150
2021 ‐ 2022
15
Programs & Policies
16 Van Life (Concept Program)Legal, safe parking area for vehicle dwellersBasic amenities on‐site (showers, toilets, trash, hook‐ups, snow removal) Nominal monthly fee (covers amenities + on‐site host)
Limited to those employed in the regionPolicy to address vacation van life population Accessory Dwelling Units (ADUs)
Prescriptive Designs (5 designs available). Sizes range from 450 – 1,030 sq ft Evaluating programs/policies to incentivize construction and long‐term renting of ADUs Allowed town‐ and county‐wide in all residential areasExpedited review Revolving Loan Fund (RLF)
Town ($1M) and County ($300K) funds available for the buy‐back of existing deed‐restricted units
Provides the Town and MLH first‐right of refusal for deed‐restricted units
Council Questions on Presentation
What did you learn?
What do you like/support?
What don’t you like/support?
What’s missing?
Breakout Session #1
Town Council Comments on Breakout
Session #1
Future [Potential] Town Projects to
Continue to Address the Housing
Issues
◦ Following site designs are conceptual only intended to solicit feedback
◦ Looking for feedback to prioritize future master planning and site development
◦ These sites are Town owned or owned by entities open to partnering with the Town
Opportunity Sites
Two Parcels
‐ Northern Parcel: 8.3 acres
Recreational opportunities (events
center with stage, park, snow play
area, multi‐use courts)‐ Southern Parcel: 8.45 acres100 units (~12 units/acre) TOML OwnedSteps to be development ready:
‐ Environmental Review
‐ Zone Change‐ Master Plan
‐ Development entitlements
Opportunity Site #1: Bell‐Shaped Parcel
22 Located at the southwest corner of Minaret Road and Meridian Blvd.
Two Parcels: 4.85 acres
‐ 20 units (4 units/acre)
‐ Maintains existing community
amenities (community center,
sports courts, parking)
TOML OwnedSteps to be development ready:
‐ Development entitlements
Opportunity Site #2: Community Center
23 Located at the northeast corner of Minaret Road and Forest Trail
Three Parcels: ~38 acres
‐ 100 – 200 units‐ Opportunities formedium‐ to high‐densityhousing types ‐ Recreational and Arts
Opportunities (Daycare,
parking, theater, outdoorevents, dog park)
Northwest and East
Parcels: Mammoth Lakes
Foundation OwnedSouthwest Parcel:Mammoth Lakes
Foundation and Southern
Mono Healthcare District
Owned
Steps to be development
ready:‐ Environmental Review
‐ Potential Zone Change‐ Master Plan
‐ Developmententitlements
Opportunity Site #3: Mammoth Lakes
Foundation Site
24 Located South of Meridian Blvd. and East of Cerro Coso College and the Edison Theatre
Town Council Questions on Presentation
1. Of the 3 sites presented, which site should the Town prioritize for future master planning and site development?
2. For each site, which density range do you think is most appropriate? (circle one) ◦ Bell Shaped Parcel: Low Medium High
◦ Community Center: Low Medium High
◦ Foundation Site: Low Medium High
3. What characteristics/amenities should a future Town
housing project include?
Breakout Session #2
Town Council Comments on Breakout
Session #2
10 Minute Break
Short‐Term Rental Management
Strategies
STR Management and Enforcement
30 Town Staff – 4 full‐time, 1 part‐time• Business Tax Certificates – Schedule E ‐ multi unit (Hotel / Motel), Schedule F ‐ short term rentals • TOT Certificates – Required for all residential transient rental units (condos, town‐homes, single family)• Transient Rental Inspections – Establishes occupancy limits as well as compliance with all standards and conditions of operating a transient rental
• Monthly collection of TOT and TBID, penalties and interest for delinquent payments, correspondence Enforcement Process• Revenue (legal zone but no license), Zoning (operating in an unpermitted zone)• Online Monitoring – “Rentalscape” • Daily review of all advertisements posted in the town. (Capture existence, rates and calendars)• Compares daily changes in the calendar to record booked or owner reserved, using published rate• Report any advertisement outside of zone or without required licenses identified • Staff Review and analysis of reports, data or trends, including booking suspected illegal units.• Initial contact ‐ $1,500 citation (waived if operator responds within 15 days)• Second citation 3,000• Assessments conducted using the published nightly rate with an average number of nights booked for the time period, going back 3 years, to determine revenue activity, penalties and interest owed • Third citation $5,000 per day, each day is a new violation
Enforcement Focus
31 Audit
• Audits are augmented by daily monitoring and analysis – estimated revenue compared to actual• 1‐3 months analysis can lead to 3‐year audits• 3‐4 are in process at all times.
Enforcement Case Study• Operator responds to initial contact • Provide actual (verifiable) rental data, compiled in a notice of determination (NOD) • NOD determines the amount owed including P&I by month, fines for health order violations, administrative citations and enforcement charges
• Citation Appeal Hearing – Town Staff with Hearing Officer – only review citations and reason for delay in response
• Appeal to Town Council – All aspects of NOD are under review and can be adjusted Enforcement tools and procedures are designed to support legal rental operators. Instituting the strictest penalties allowed by the State of California on those choosing not to follow rules.
Most individuals involved in enforcement cases are surprised by significance of fines and the speed in which they accumulate.
Enforcement Focus
32 0
102030405060708090
100
2023 2022 2021 2020 2019 2018
Enforcement Cases by Fiscal Year
Enforcement Focus
33 $399,876
$339,289 $336,555
$178,030
$219,294
$445,015
$‐
$50,000
$100,000$150,000$200,000$250,000$300,000$350,000$400,000$450,000$500,000 2023 2022 2021 2020 2019 2018
TOT Enforcement Revenue
Certified Properties
34 Key Points• Establish a relationship between Town and Property Owner • Most issues with enforcement stem from lack of understanding transient rentals are a business and the owner is ultimately responsible for the activity • By collecting accurate contact information, we can quickly alert owners of nuisance activity • Reverse of our current process, property first and business second. Focus on quality of life• Property Inspections every 4 years – life safety and quality control of the rental pool • Currently only during initial application or change in ownership • Local 24‐hour emergency contact verified by signature. Cleaning service businesses required to be legal operators
• Data tracking (revenue as well as stats on number of nights rented and nights available by unit)• Better enforcement – revocation of Certified Property status possible • Interactive online Property Map that provides rental property information (operator name, maximum occupancy, 24‐hour contact, maximum nightly room rate, trash disposal information) • Set for Implementation – Fall 2023
Overview of STR Management Options
35 • 1. STR Management – Continue with current work programs around Certified Property program, establishing owner relationships, maximize fines and penalties including revocation of STR Certificate
• 2. STR Restrictions and/or Reduction – Pause issuance of STRs outside of Resort Zone. Two‐year process to review potential zoning changes. Limit number of units or number of rental days per unit allowed for rental. Conduct economic study on impacts of STR
• 3. Facilitate conversion to Long Term Rentals or Ownership • Develop program with structured long term lease agreement with availability for owner occupied periods of time.
• Subsidy for rental management if STR converts to long‐term rental for defined period of time • Amnesty for P&I and enforcement charges if STR violator enters in long‐term rental for at least 3 years. • Focus on lower earning STR’s to convert to long‐term with incentives (lower volume, lower subsidy) • 4. Limit STR to Resort Zones Only
Town Council Questions on Presentation
Breakout Session #3
1. Rank your support for the possible management plans (1 – Most Support, 4 – Least Support)
Current STR Management Plan – Including Certified
Properties, Maximum fines.
STR Restrictions or Reductions – Number of Units or
Number of Days, Study
Facilitate conversion to Long Term Rentals or Ownership Ban STR outside of Resort Zones
2. Are there minor adjustments to the identified work plans that could make them more effective?3. Other alternatives to identified work plans that would balance between resort community attracting visitation and preservation of local housing units?
Town Council Comments on Breakout
Session #3/Final Council Comments
Thank you for attending and
participating in today’s Housing
Workshop!
Next Steps:‐ The ‘Group Comment Sheets’ and ‘Individual Thoughts and Comments Sheets’ will be collected by the Town.
‐ Staff will prepare a report for a future Town Council meeting summarizing the comments from the response sheets and comments made at the workshop. ‐ Staff will be looking to Town Council for direction at a future Council meeting on the topics discussed at the workshop.