City Council/Public Finance and Economic Development Authority/Parking Authority
August 7, 2023

8/2/2023
1 1Merced County Multi-Jurisdictional Housing ElementCity of Merced, Report to City Council | August 7, 2023 1 8/2/2023
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Project Organization
City of City of AtwaterCity of Dos City of Dos PalosCity of City of GustineCity of City of LivingstonCity of Los City of Los BanosCity of City of MercedMerced Merced County 2 8/2/2023
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Introduction to the Multi-Jurisdictional Housing Element AgendaOverview of the Housing Element Regional Housing Needs Assessment (RHNA)Housing Element Policies & ProgramsNew Housing Element LawsRole of Decision MakersTimeline3 8/2/2023
4 4General PlanSafetyNoiseConservationOpen SpaceTransportationLand UseHousingWhat is a Housing Element?A housing plan for residents of all income levelsOne of the eight mandatory elements in a General PlanGoverned by CA Government Code Article 10.6 (Housing Element Law)Required to be updated every eight yearsEach period called a “cycle”This update is the 6th cycleMust be reviewed and certified by California Department of Housing and Community Development (HCD)4 8/2/2023
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Why is a Housing Element necessary?Non-compliance with state haw triggers potential fines, and the General Plan could be deemed inadequate and invalidPotential for legal action against local government when making land use decisionsEligibility for several federal and state housing, community development, and infrastructure funding and grant programs5 8/2/2023
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Needs Assessment
• Demographics• Existing and projected housing needs• Special housing needsAssessment of Fair Housing • Segregation & integration• Disparities in access to opportunity• Fair housing impact of sites inventoryConstraints Analysis • Governmental (regulatory)• Market• EnvironmentalResources • Financial• AdministrativeSites Inventory
• List of sites• Analysis justifying assumptions and site selection• May include rezoning planHousing Plan • Review of current (5th cycle) Housing Element programs• Goals, Policies & Programs• Quantified Objectives Housing Element Basics
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•Regional Housing Need DeterminationState of California •RHNA MethodologyMCAG
•Housing Element UpdatesLocal Governments
Regional Housing Needs Allocation (RHNA)HCD determines statewide housing production goal by income category and assigns each region a shareMCAG develops RHNA methodology and assigns each jurisdiction a set number of housing units by household income levelThrough the Housing Element update, jurisdictions must identify sites to meet their share of the RHNA Must also provide evidence that sites will be developed with adequate housing units within the eight-year planning period.7 8/2/2023
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MCAG RHNA MethodologyNeeds based on California Department of Finance and HCD population projectionsConsistent with regional initiatives and plans such as the Regional Transportation Plan and Sustainable Communities StrategyBroken down by income levelFurthers statutory objectives of supplying housing mix of types, tenure, and affordabilityPromotes socioeconomic equityPromotes improved jobs-to-housing balance8 8/2/2023
9 9City of Mercedmust accommodate 41% of the RHNA as lower-income housing Very-Low24%Low17%Moderate17%
Above Moderate42%MCAG JurisdictionVery-Low Low Moderate Above ModerateTotalAtwater 76825.4%52617.4%50816.8%1,21540.3%3,017Dos Palos 5621.4%3914.9%4918.8%11744.8%261Gustine 7722.2%5315.3%6418.5%15243.9%346Livingston 31128.3%21319.4%16915.4%40436.8%1,097Los Banos 71922.9%49315.7%56618.0%1,35443.2%3,132Merced 2,54324.1%1,74216.6%1,83817.5%4,39441.8%10,517Unincorporated County1,04224.5%71416.8%73617.3%1,75841.3%4,250Total 5,516 3,780 3,930 9,394 22,620 RHNA Breakdown by Income Level
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MCAG Jurisdiction Very-Low Low Moderate Above Moderate TotalAtwater 76825.4%52617.4%50816.8%1,21540.3%3,017Dos Palos 5621.4%3914.9%4918.8%11744.8%261Gustine 7722.2%5315.3%6418.5%15243.9%346Livingston 31128.3%21319.4%16915.4%40436.8%1,097Los Banos 71922.9%49315.7%56618.0%1,35443.2%3,132Merced 2,54324.1%1,74216.6%1,83817.5%4,39441.8%10,517Unincorporated County1,04224.5%71416.8%73617.3%1,75841.3%4,250Total 5,516 3,780 3,930 9,394 22,620 Merced CountyArea Median Income:$80,300/year (for a family of 4)City of Merced Share of RHNA 10 8/2/2023
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“At least” means that the density range allowed under current zoning accommodates the HCD density standard for the income category.

Lower-Income RHNA•State law defines “default” density standards that are “deemed appropriate to accommodate housing for lower-income households.”•Default density for lower-income units for Merced County jurisdictions is at least 20 dwelling units per acre*•Rezone sites must have a minimum density of at least 16 dwelling units per acre•HCD recommends buffer of “at least 15 percent” more capacity than required (especially for lower-income categories)11 8/2/2023
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Meeting the RHNAPlanned and approved projects Building permits issued for residential development after July 1, 2023Projected ADUsBased on ADU permitting trends, assume a number of ADUs to be permitted in the 6th CycleIdentification of sites Sites with appropriate zoning and development standards to accommodate residential development (opportunity sites)If needed, identify sites for rezoning to accommodate shortfall (rezone sites)12 8/2/2023
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Housing Goals, Policies, and ProgramsReview and update goals, policies, programs, and objectives from the previous housing cycleSpecific commitments to action and timelinesPrograms must address: Identified constraints to housing development and compliance with new state lawsSpecial needs groups such as seniors, persons experiencing homelessness, college students, farmworkers, and persons with disabilitiesIdentified fair housing issues and improve adverse conditions Housing production
Housing preservation
Housing protections
Housing access
Fair housingCategories of Housing Programs: 13
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●Rincon●County Sustainability
Role of Decision MakersApprove submittal of the Draft Regional Multi-Jurisdiction Housing Element to Housing and Community Development (HCD) for reviewAdopt the Draft Regional Housing Element and re-submittal to HCD for reviewOpportunity for public comment14 8/2/2023
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●Rincon●County Sustainability
Estimated Timeline
Opportunities for Community InputCommunity surveyCommunity workshopsStakeholder interviews (developers, non-profits, community leaders)Review of the Draft Housing Element Spring & Summer 2023Study SessionsCommunity SurveyCommunity WorkshopsStakeholder Interviews Fall/Winter 2023 Publish Draft Regional Housing Element Summer 2024Public Hearings on Adoption of Housing Element 15 8/2/2023
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Community Workshop ScheduleTuesday, August 22•Time: 6 pm to 8 pm•Location: Civic Center, Sam Pipes Room, 678 W 18th StreetSaturday, August 26•Time: 9 am to 11 am•Location: Civic Center, Sam Pipes Room, 678 W 18th Street16 8/2/2023
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Questions?More InformationProject Website: https://mercedmjhe.com/City of Merced – Planning Project TeamPlanning Department – 209-385-6858Scott McBride, Director of Development Services[email protected]Julie Nelson, Acting Planning Manager[email protected]Leah Brown, Management Analyst[email protected]