Modesto City Council
December 5, 2023

improved antenna systems. Their system utilizes a unique and proprietary sensor array, Artificial Intelligence (AI) and Machine Learning (ML) video/optical analytics, computing hardware, and battery management systems to identify water meter performance and maintenance needs, so that water utilities can quickly prioritize repairs based on economic return. City staff determined that a pilot project should be able to demonstrate whether Olea’s system would be of economic value to the City if expanded out to a broader range of large water meters.

Throughout the pilot it was found that of the twenty-five meters being monitored, fourteen large meters were identified and diagnosed with performance issues and prioritized for repair by City staff. One sample meter from the pilot project revealed that 86% of water flowing through the meter was not being recognized. The pilot project summary included an annual water loss reduction of 20,528 Centum Cubic Feet (CCF: 100 cubic feet) and projected recovered revenues of $159,503, based on combined annual water and wastewater rates.

DISCUSSION:

This technology has been demonstrated to have a significant positive impact on water loss reduction, water conservation, billing accuracy and revenue, reducing customer disputes, improving maintenance processes and response times, and asset and knowledge management.

Olea Networks will provide a detailed analysis of installed meters from site surveys, deployment of devices, data collection and detailed results related to specific failure modes.

To implement new technology and services to identify and repair the sources of water loss within our distribution network, the Water Division would like to expand the pilot program to monitor the Meter Health Analytics (MHA) of 200 large, commercial, and industrial water meters, pressure reducing valves and shut-off valves. This was presented to the Technology Steering and Alignment Committee (TSAC) on May 25, 2023, and a motion was made to submit to Council for approval. A Bid Waiver application was also submitted explaining the Sole Source nature of the equipment and services provided by Olea, and it was approved by the Purchasing Manager and Director of Finance to move forward to Council.

Modesto Municipal Code Section 8-3.203 generally requires all purchases, which meet or exceed $100,000 for material, equipment, or contractual services to follow formal bid procedures. However, MMC Section 8-3.204 (b) provides that a purchase may be exempted from the City’s formal bidding requirement where the Purchasing Agency’s requirements can be met solely by a single article or process. Additionally, MMC 8-3.204(d) provides that a purchase may also be exempted where the Purchasing Manager, in her discretion, determines that a process other than the formal bid procedure set forth in Section 8-3.203 will result in a procurement for the City at the lowest possible cost commensurate with the desired quality.

Olea Networks is the original equipment manufacturer and sole proprietor of the Smart Water Revenue System and all related components, software, and processes. In addition, even if other manufacturers could provide equivalent equipment, using a single manufacturer creates operational and administrative efficiencies. Therefore, this purchase qualifies for exemption from the formal bidding procedures.

FISCAL IMPACT:

The anticipated cost of $1,500,000 will be funded by the current Utilities Department, Water Division Non-Capital Improvement Project #101480, Olea Smart Water Revenue System. #19..
- 898 -
City Council, December 5, 2023
Olea Edge Large Water Meter Health Analytics

ANTICIPATED AGREEMENT EXPENDITURES
ALX-MHA100 Annual Subscription – Qty 200 x $1,200 $ 240,000 ALX-MHA100 Initial Installation – Qty 200 x $250 $ 50,000 ALX-Asset Survey – Qty 200 x $250 $ 50,000
Annual Subscription Renewal (Year 2-5) - $240,000 x 4 contract years $ 960,000 Hardware Removal and Reinstallation (for the purpose of meter repairs) $ 200,000 Total based on 200 units $1,500,000
The proposed Agreement is projected to have a gross revenue recovery of $1,743,707 over five years, for a net recovery of $243,707.

COMMITTEE RECOMMENDATION:

This item was presented to the Economic Development Committee on November 1, 2023, and was recommended to forward to Council for approval.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving an Agreement with Olea Networks Inc., Bee Cave, TX, for Large Commercial Water Meter Health Analytic Software and Technology for a two-year Agreement with three one-year extension options, for an annual estimated amount of $340,000 and a total amount not to exceed $1,500,000 over five years and authorizing the City Manager or his designee to execute the Agreement.

Approved by:

William Wong, Director of Utilities
Joseph P. Lopez, City Manager
Attachments:

1. Resolution – Olea Edge Analytics

2. Agreement #255935 – Olea Edge Analytics

3. Exhibit B – Olea Edge Large Meter Analytics Proposal, Scope and Terms

4. Olea – Financial Interest Disclosure

5. Olea – Fully Executed Bid Waiver and Sole Source Letter #19..
- 899 -
1 2023-12-05

MODESTO CITY COUNCIL
RESOLUTION NO. 2023-

RESOLUTION APPROVING AN AGREEMENT WITH OLEA NETWORKS, INC,

BEE CAVE, TX FOR LARGE COMMERCIAL WATER METER HEALTH

ANALYTIC SOFTWARE AND TECHNOLOGY FOR A TWO-YEAR

AGREEMENT WITH THREE ONE-YEAR EXTENTION OPTIONS, FOR AN ANNUAL ESTIMATED AMOUNT OF $340,000 AND A TOTAL AMOUNT NOT TO EXCEED $1,500,000 OVER FIVE YEARS, AND AUTHORIZING THE CITY

MANAGER, OR HIS DESIGNEE, TO EXECUTE THE AGREEMENT
WHEREAS, the City must comply with the State Water Resources Control Board Water Code, Section 10608.34, which requires the State Water Board to develop water loss performance standards for urban retail water suppliers, and WHEREAS, Executive Order B-37-16, making water conservation a way of life, directs the State Water Board and Department of Water Resources to minimize water waste through system leaks, and
WHEREAS, beginning in 2017, SB 555 requires the City to submit a validated water loss report for the previous year. These audits estimate distribution system losses due to leaks, bursts, billing, or meter inaccuracies and theft using the system’s total water supply and actual consumption volumes, and
WHEREAS, in 2022, the Water Division engaged Olea Networks, Inc. (Olea) to conduct a pilot deployment of Meter Health Analytics (MHA) on twenty-five (25) large meters throughout the City, and
WHEREAS, throughout the pilot, it was found that of the twenty-five meters being monitored, fourteen large meters were identified and diagnosed with performance issues and prioritized for repair, and
WHEREAS, this technology has been demonstrated to have a significant positive impact on water loss reduction, water conservation, billing accuracy and revenue, reducing #19..
- 900 -
2 2023-12-05
customer disputes, improving maintenance processes and response times, and asset and knowledge management, and
WHEREAS, Olea will provide a detailed analysis of installed meters from site surveys, deployment of devices, data collection and detailed results related to specific failure modes, and
WHEREAS, the Water Division would like to expand the pilot program to monitor the Meter Health Analytics (MHA) of 200 large, commercial, and industrial water meters, pressure reducing valves and shut-off valves, and
WHEREAS, Modesto Municipal Code Section 8-3.203 generally requires all purchases which meet or exceed $100,000 for material, equipment, or contractual services to be formally bid. However, MMC Section 8-3.204 (b) provides that a purchase may be exempted from the City’s formal bidding requirement where the Purchasing Agency’s requirements can be met solely by a single article or process; and WHEREAS, additionally, MMC 8-3.204 (d) provides that a purchase may also be exempted where the Purchasing Manager, in her discretion, determines that a process other than the formal bid procedure set forth in Section 8-3.203 will result in a procurement for the City at the lowest possible cost commensurate with the desired quality, and WHEREAS, Olea Network is the original equipment manufacturer and sole proprietor of the Smart Water Revenue System and all related components, software, and processes. Therefore, this purchase qualifies for exemption from the formal bidding procedure.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby approves an Agreement of Large Commercial Water Meter Health Analytic #19..
- 901 -
3 2023-12-05
Software and Technology for a two-year Agreement with three one-year extension options for an annual estimated amount of $340,000 and a total amount not to exceed $1,500,000 over five years.

BE IT FURTHER RESOLVED that the City Manager, or his designee, is hereby authorized to execute the Agreement in a form approved by the City Attorney.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 5th day of December, 2023, by Councilmember ?, who moved its adoption, which motion being duly seconded by Councilmember ?, was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ATTEST: _____________________________________
DIANE NAYARES-PEREZ, CMC, City Clerk
(SEAL)
APPROVED AS TO FORM:

BY: ____________________________________
JOSE M. SANCHEZ, City Attorney
#19..
- 902 -
1 ANNUAL AGREEMENT NO. 255935

FOR METER HEALTH ANALYTICS

OLEA EDGE ANALYTICS
This agreement, hereinafter called AGREEMENT, made and entered into in the City of Modesto, State of California, this ____ day of _________, 2023, by and between the City of Modesto, a municipal corporation of the State of California, hereinafter called CITY, and Olea Networks, Inc. DBA Olea Edge Analytics hereinafter called CONTRACTOR.

W I T N E S S E T H:

WHEREAS, the Modesto City Council adopted Resolution No. 2023- ______ authorizing the Award of Bid and agreement for the Meter Health Analytics SERVICES to CONTRACTOR, attached hereto as Exhibit “A” and made a part hereof, and
WHEREAS, the CONTRACTOR provided a responsive and responsible submittal that best meets the CITY needs, attached hereto as Exhibit “B” and made a part hereof, and NOW, THEREFORE, the parties hereto mutually agree as follows:

1. THE WORK:
a. CONTRACTOR shall furnish all labor, materials, equipment, fuel, tools, licenses, bonds and insurance necessary to perform and complete the required work as specified in Exhibit “B”, and in strict #19..
- 903 -
2 accordance with the conditions of the complete AGREEMENT. b. CONTRACTOR shall do and perform the work contemplated hereby in a good workmanlike manner under the direction of and to the satisfaction of the CITY Representative. c. CONTRACTOR shall maintain proper insurance with the CITY for the duration of the AGREEMENT.
d. CONTRACTOR shall maintain a CITY business license for the duration of the AGREEMENT.
e. CONTRACTOR shall furnish said services at the following AGREEMENT rates for an initial amount of $340,000 for YEAR 1 and estimated annual amount of $290,000. The total amount paid by CITY to CONTRACTOR over the full term of the AGREEMENT shall not exceed $1,500,000. Unless the services provided are for a lump sum or flat fee, fees for work performed by CONTRACTOR on an hourly basis shall not exceed the amounts shown on Bid attached hereto as Exhibit B.

AGREEMENT PRICING
ALX-MHA100 Annual Subscription – Qty 200 x $1,200 $ 240,000 ALX-MHA100 Initial Installation – Qty 200 x $250 $ 50,000 ALX-Asset Survey – Qty 200 x $250 $ 50,000
Annual Subscription Renewal (Year 2-5) - $240,000 x 4 contract years $ 960,000 Hardware Removal and Reinstallation (for the purpose of meter repairs estimate at 125 units per year)
$ 200,000
Total based on 200 units $1,500,000

2. CITY REPRESENTATIVE:

CITY Representative: Tony Benns, Utilities Plant Operations Supervisor, (209) 342-4599, [email protected]
Purchasing Division Contact: Melvin Rosal, Buyer, (209) 577-5420, [email protected] The CITY Representative is not authorized to commit the CITY to changes in specifications, requirements, or scope of work, changes in price(s), period of performance or delivery date(s) or method of #19..
- 904 -
3 shipment. Changes of a contractual or business nature shall be effective only by written change to the AGREEMENT, issued by the City of Modesto, Purchasing Division.

3. TERM OF AGREEMENT:

The term of the AGREEMENT shall be for a period of two (2) years, with three (3) one-year extension options at the sole discretion of CITY, for a total of up to five years.

Year 1: December 5, 2023 through December 4, 2024
Year 2: December 5, 2024 through December 4, 2025
Year 3: December 5, 2025 through December 4, 2026
Year 4: December 5, 2026 through December 4, 2027
Year 5: December 5, 2027 through December 4, 2028
Pricing as set forth in Section 1.e. above shall remain firm for the first two years of the AGREEMENT.

Price increases for any subsequent AGREEMENT years following the second year, shall not exceed the percentage change in the Consumer Price Index (CPI) for West Urban Area in any one AGREEMENT year, and shall be negotiated through the Purchasing Division. Requests for price increases shall be submitted by CONTRACTOR in writing, 90 days prior to the annual anniversary date of the AGREEMENT to be effective for the subsequent year.

4. LIABILITY INSURANCE:

The CONTRACTOR shall provide, at its own expense, and maintain at all times the following insurance with insurance companies licensed in the State of California and shall provide evidence of such insurance to the CITY as may be required by the City Clerk of the CITY. The policies or certificates thereof shall provide that, at least 30 days prior to cancellation or material change in the policy, notices of same shall be given to the Risk Manager of the CITY via PINS Advantage Insurance Program, for all of the following stated insurance policies.
a. General Liability - insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage. The insurance shall indicate on the certificate of insurance the #19..
- 905 -
4 following coverage and indicate the policy aggregate limit applying to: premises and operations; broad form contractual; independent contractors and subcontractors; products and completed operations; and/or professional liability.
b. Automobile Liability – insurance with a minimum limit of liability per occurrence of $1,000,000 for bodily injury and property damage and transportation related pollution liability. This insurance shall cover any automobile for bodily injury and property damage. c. Workers' Compensation - in compliance with the statutes of the State of California, plus employer's liability with a minimum limit of liability of $1,000,000 per accident for bodily injury or disease.

If at any time any of said policies shall be unsatisfactory to the CITY, as to form or substance or if a company issuing such policy shall be unsatisfactory to the CITY, the CONTRACTOR shall promptly obtain a new policy, submit the same to the CITY’s Risk Manager for approval and submit a certificate thereof as hereinabove provided. Upon failure of the CONTRACTOR to furnish, deliver or maintain such insurance and certificates as above provided, this AGREEMENT, at the election of the CITY, may be forthwith declared suspended, or terminated. Failure of the CONTRACTOR to obtain and/or maintain any required insurance shall not relieve the CONTRACTOR from any liability under this Agreement, nor shall the insurance requirements be construed to conflict with or otherwise limit the obligations of the CONTRACTOR concerning indemnification.

The CITY, officers, officials, employees, agents, and volunteers, shall be named as an additional insured on all insurance policies required herein, except Workers' Compensation.

The Workers' Compensation insurer shall agree to waive all rights of subrogation against the CITY, its officers, officials, employees, agents, and volunteers for losses arising from work performed by CONTRACTOR for the CITY.

The CONTRACTOR’s insurance policy(ices) shall include a provision that the coverage is primary as respects the CITY; shall include no special limitations to coverage provided to additional insured; and, shall be placed with insurer(s) with acceptable Best's rating of A:VII or with approval of the CITY’s Risk Manager.
#19..
- 906 -
5 For any claims related to this AGREEMENT, the CONTRACTOR’s insurance coverage shall be primary insurance as respects CITY, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by CITY, its officers, officials, employees, agents, and volunteers, shall be excess of the CONTRACTOR’s insurance and shall not contribute with it.

5. PAYMENT:

CONTRACTOR shall invoice CITY not less than once per month based on the cost for services performed and reimbursable costs incurred prior to the invoice date. All invoices shall be paid in full the following payment terms within thirty days after completion and acceptance of the Services by the CITY, and receipt of a properly prepared invoice, CITY will pay CONTRACTOR Net 30 terms via CITY’s ePay Program.

The CITY is exempt from payment of Federal Excise Tax, and all invoices shall be exclusive of such excise tax.

Invoice to: City of Modesto
Attn: Accounts Payable
P.O. Box 642
Modesto, CA 95353
Email to: [email protected]
At a minimum, invoices shall state the following:
• This AGREEMENT number
• CITY department/division name and address
• Billing period
• Service hours worked day and week
• Unit price, extended price, sales tax and total

6. INDEMNITY:

The CONTRACTOR shall hold the CITY, officers, officials, employees, agents, and volunteers, harmless from and save, defend and indemnify them against any and all claims, losses, liabilities, judgments or damages from every cause, including but not limited to injury to person or property or wrongful death, including reasonable costs and expenses of defense of any judicial or administrative action, arising directly or indirectly out of any negligent or intentional act or omission of CONTRACTOR, or its officers, officials, #19..
- 907 -
6 employees, agents, and volunteers relating to or during the performance of its obligations under this AGREEMENT. CONTRACTOR’s obligation to defend, indemnify, and hold the CITY, its officers, officials, employees, agents, and volunteers harmless under the provisions of this paragraph is not limited to or restricted by any requirement in this AGREEMENT for CONTRACTOR to procure and maintain a policy of insurance.

7. VENUE & GOVERNING LAW:

Venue for any dispute or claim arising or related to this AGREEMENT its performance, breach, or interpretation (including issues about its validity or enforceability), shall be exclusively in the Superior Court of Stanislaus County or the United States District Court for the Eastern District of California.

This AGREEMENT shall be deemed made in, governed by, performed in, and construed and enforced in accordance with the laws of the State of California, without giving effect to its conflicts of laws provisions or principles.

8. ATTORNEYS’ FEES:

If a party to this AGREEMENT brings any action, including an action for declaratory relief, to enforce or interpret the provision of this AGREEMENT, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

9. COMMENCEMENT AND COMPLETION OF THE WORK:

The work contemplated herein shall be commenced as immediately after the agreement administrator receives and has on file:

Proofs of insurance (approved by CITY Risk Manager); and Executed Agreement;
a. Resolution No.2023-_______;
b. CONTRACTOR Bid submittal;
c. Contractor’s City of Modesto business license

10. TERMINATION OF SERVICES:
#19..
- 908 -
7 Termination for Default: In the event either party fails to perform under this AGREEMENT or breaches any condition contained herein, the other party shall notify in writing the breaching party of the nonperformance. Within 10 days after receipt of notification, the breaching party shall correct any nonperformance to the reasonable satisfaction of the non-breaching party, or such other time as may be identified in the notice. Failure to correct any non-performance shall allow the non-breaching party to terminate this AGREEMENT for cause.

Termination by City for Convenience: The City may also terminate this AGREEMENT the Contractor's performance underthe Agreement, eitherin whole orin part, at its own discretion and without cause.

Post-Termination Procedure
Upon receipt of a written notice of termination pursuant to either of the foregoing paragraphs, the CONTRACTOR shall:
a. Cease its work as directed in the notice of termination as of the termination date and see to it that its employees, subcontractors and agents are notified of such termination and act as specified in the notice of termination;
b. Terminate all orders and subcontracts except as necessary to complete any portion of the SERVICES that are not terminated;
c. If directed in writing by the CITY to do so, assign all right, title and interest in subcontracts and materials in progress to CITY, in which case the CITY will have the right at its discretion to settle, or pay any or all claims arising out of the termination of such, but in no event shall recovery by any CONTRACTOR or subcontractor include lost profits for portions of the SERVICES not completed or undertaken, including materials not delivered; d. Deliver or otherwise make available to the CITY all data, drawings, specifications, reports, estimates, summaries and such other information and material as may have been accumulated by the CONTRACTOR in performing the SERVICES whether completed or in process; e. Settle outstanding liabilities and claims, subject to the approval of CITY; #19..
- 909 -
8 f. Complete performance of such part of the SERVICES as has not been terminated; g. Take such other actions as may be necessary, or as may be directed by the CITY for the protection and preservation of the SERVICES and/or property related to the SERVICES; h. If CITY so requests, and at CITY's cost, CONTRACTOR shall provide sufficient oral or written status reports to make CITY reasonably aware of the status of CONTRACTOR’s work on the SERVICES.
i. CONTRACTOR understands and agrees that CITY may, in CITY’s sole discretion, refuse to pay CONTRACTOR for that portion of CONTRACTOR's SERVICES which were performed by CONTRACTOR on the project prior to the termination date and which remain unacceptable and/or not useful to CONTRACTOR as of the termination date.

CITY will pay CONTRACTOR for SERVICES actually completed prior to the receipt of the termination notice or otherwise completed in accordance with the notice of termination. The final payment to the CONTRACTOR after termination for convenience shall be limited to amounts due and owing under the AGREEMENT at time of termination, including the following:
a. The cost of settling and paying valid claims arising out of the termination of the SERVICES such as subcontractor agreements or contracts for materials; b. The AGREEMENT price allocable to the portion of the SERVICES properly performed or goods supplied to the work site by the CONTRACTOR as of the date of termination, as determined in accordance with the notice of termination, reduced by any sums previously paid to the CONTRACTOR for such SERVICES.

11. COMPLIANCE WITH ALL LAWS:

CONTRACTOR hereby agrees that CONTRACTOR and its subcontractors, if any, in the performance of the SERVICES described herein, will comply with all federal, state, county and municipal laws, rules and regulations which may be applicable to the work herein contracted for, whether now in existence or hereafter adopted.
#19..
- 910 -
9 12. FAILURE TO PERFORM SATISFACTORY WORK:

It is agreed and understood that if the CONTRACTOR fails to perform the SERVICES as specified herein, CITY's representative may:
a. Consent to accept such unsatisfactory service with an appropriate adjustment in contract price, based on established cost factors,
b. Have such required work done by CITY forces or otherwise, and charge the cost thereof to the CONTRACTOR, or
c. Recommend termination of AGREEMENT between said the CONTRACTOR and the City of Modesto.

Those discrepancies and deficiencies in the SERVICES that remains uncorrected after the date set for correction may be the necessary justification for a billing adjustment in the month following the occurrence. Unless otherwise negotiated, billing adjustments for this incomplete or uncorrected work shall be permanent retention of 100% of the estimated monthly cost for the SERVICES not corrected or completed.

13. ASSIGNMENT OF RIGHTS:

The CONTRACTOR offers and agrees, and will require all subcontractors and suppliers to agree, to assign to the CITY all rights, title, and interest in and to all causes of action it and they may have under Section 4 of the Clayton Act (15 United States code, Section 15) or under the Cartwright Act (Business and Professions Code, Section 16700 et seq.), arising from the acquisition of goods, services, or materials pursuant to this AGREEMENT or any allowed subcontract. The assignment made by CONTRACTOR and all assignments made by subcontractors and suppliers shall be made and become effective at the time the CITY makes final payment to The CONTRACTOR, without further acknowledgment by the parties (Government Code, Sections 4550-4554).

14. CITY PROCESS/PROCEDURE APPROVALS:

CITY approval of any process or procedure shall not relieve CONTRACTOR of its responsibility to furnish the required SERVICES meeting all specifications contained herein. #19..
- 911 -
10 15. CONTRACTOR'S RESPONSIBILITY FOR DAMAGES:

If CONTRACTOR damages any property belonging to the CITY or a third party, the CONTRACTOR will be required to make repairs immediately, at CONTRACTOR’s sole cost and expense, to the satisfaction of the CITY. In the event that CONTRACTOR fails to perform the necessary repairs, the CITY may either retain from the money due to CONTRACTOR an amount sufficient to repair the damage or perform the repairs and send an invoice to the CONTRACTOR for such costs, which shall be paid within thirty (30) days.

16. NOTICES:

Any notice, payment or instrument required or permitted by this AGREEMENT to be given or delivered to either party shall be deemed to have been received when personally delivered, or one calendar week following deposit of the same in any United States Post Office, registered or certified mail, postage prepaid, addressed as follows:

CONTRACTOR: Olea Networks Inc. DBA Olea Edge Analytics
Attn: Chief Financial Officer
12912 Hill Country Blvd, Suite F245
Austin, TX 78738
CITY: City of Modesto
Purchasing Division
P.O. Box 642
Modesto, CA 95353
Each party may change its address for delivery of notice by delivering written notice of such change of address to the other party.

17. SIGNATORY(IES) FOR CONTRACTOR:

Each signatory for CONTRACTOR below warrants and represents that it is legally competent to, and have full authority to, execute the AGREEMENT.

18. QUANTITIES:

No minimum or maximum is guaranteed or implied.

19. FUNDING:
#19..
- 912 -
11 All annual extensions are based upon continuous funding for that purpose by the City Council.

Failure to fund any annual extension shall result in an immediate termination of the AGREEMENT without redress.

20. OTHER GOVERNMENT/PUBLICLY FUNDED AGENCIES:

If mutually agreeable to all parties, the issuance of any resultant contract/purchase order referencing these specifications and modified by mutual agreement between all parties may be extended to other government or publicly funded agencies. It shall be understood that all terms and conditions as specified herein shall apply.

21. NON-DISCRIMINATION:
a. During the performance of this AGREEMENT, CONTRACTOR and any allowed subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, color, ancestry, religion, sex, national origin, marital status, age, medical condition (cancer related), physical handicap (including AIDS), sexual orientation, or any other basis prohibited by Federal or California law. Equal employment opportunity extends, but is not limited to recruitment, compensation, benefits, layoff, termination, and all other conditions of employment. The CONTRACTOR and any allowed subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination. The CONTRACTOR and any allowed subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Government Code, Section 12900 et seq.) and the applicable regulations promulgated thereunder (California Administrative Code, Title 2, and Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12900, set forth in Chapter 5 of Division 4 of Title 2 of the California Administrative Code are incorporated into this contract by reference and made a part hereof as if set forth in full. b. The CONTRACTOR and any allowed subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement.
#19..
- 913 -
12 c. The CONTRACTOR shall include the nondiscrimination and compliance provisions of this clause in any allowed subcontracts to perform SERVICES. d. The Contractor shall permit access by representatives of the Department of Fair Employment and Housing and the CITY upon reasonable notice at any time during the normal business hours, but in no case less than 24 hours notice, to such of its books, records, accounts, other sources of information and its facilities as said Department or CITY shall require to ascertain compliance with this AGREEMENT. e. By executing this AGREEMENT, CONTRACTOR certifies that it shall follow and be in compliance with the Americans with Disabilities Act of 1990, the applicable administrative requirements promulgated in response thereto, and any other applicable Federal laws and regulations relating to handicap discrimination and participation, and will continue to do so for at least the duration of the AGREEMENT and any extensions thereof.

22. CONTRACTOR LICENSES & PERMITS:

CONTRACTOR warrants and represents that it possesses and shall maintain all licenses, and shall secure and maintain all necessary permits, necessary to perform the SERVICES.

23. RECORDS:

All final versions of reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that CONTRACTOR prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the CITY. CONTRACTOR hereby agrees to deliver those documents to the CITY upon termination of the AGREEMENT, and the CITY may use, reuse or otherwise dispose of the documents without CONTRACTOR’s permission. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this AGREEMENT are prepared specifically for the City and are not necessarily suitable for any future or other use.

24. FACILITIES AND EQUIPMENT:

Except as set forth herein, CONTRACTOR shall, at its sole cost and expense, provide all #19..
- 914 -
13 facilities and equipment that may be necessary to perform the services required by this AGREEMENT. CITY shall make available to CONTRACTOR only the facilities and equipment listed in EXHIBIT “B”, and only under the terms and conditions set forth herein.

25. INDEPENDENT CONTRACTOR; NOT AGENT:

At all times during the term of this AGREEMENT, CONTRACTOR shall be an independent contractor and shall not be an employee of CITY. CITY shall have the right to control CONTRACTOR only insofar as the results of CONTRACTOR’s services rendered pursuant to this AGREEMENT. Except as City may specify in writing, CONTRACTOR shall have no authority, express or implied, to act on behalf of CITY in any capacity whatsoever as an agent. CONTRACTOR shall have no authority, express or implied, pursuant to this AGREEMENT to bind City to any obligation whatsoever.

26. DRUG FREE WORKPLACE:

CONTRACTOR certifies that it is following and in compliance with Sections 8350 - 8355 of Chapter 5.5 of the Government Code, Drug Free Workplace Act whereby each person or organization awarded a contract/purchase order or grant for the procurement of any property or service from any state agency (city) shall certify to the contracting or granting agency that it will provide a drug free workplace.

27. ASSIGNMENT:

Neither this AGREEMENT nor any SERVICES hereunder shall be subcontracted or assigned by CONTRACTOR without the prior written consent of the CITY in each and every instance.

28. WAIVER:

The waiver by any party to this AGREEMENT of a breach of any provision hereof shall be in writing and shall not operate or be construed as a waiver of any other or subsequent breach hereof unless specifically stated in writing.

29. HEADINGS NOT CONTROLLING:

Headings used in the Agreement are for reference purposes only and shall not be considered in construing this AGREEMENT.
#19..
- 915 -
14 30. MISCELLANEOUS:

Time is of the essence in CONTRACTOR’s performance under each provision of this AGREEMENT.

31. ENTIRE AGREEMENT:

This Agreement and its exhibits contain the entire understanding between CONTRACTOR and CITY. Additional or new terms contained in this AGREEMENT which vary from CONTRACTOR’S bid are controlling and are deemed accepted by CONTRACTOR by performance of any SERVICES or other commencement of performance hereunder. The terms and conditions, attached hereto as Exhibit B, are incorporated herein. In the event of a conflict, this AGREEMENT shall control. All previous bids, offers and communications relative to this Agreement, whether oral or written, are hereby superseded except to the extent that they have been incorporated into this Agreement. No future waiver or exception to any of the terms, conditions, and provisions of this AGREEMENT shall be considered valid unless specifically agreed to in writing by the parties.

32. PARTIAL INVALIDITY:

If any provision in this AGREEMENT is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
#19..
- 916 -
15 IN WITNESS WHEREOF, the CITY OF MODESTO, a municipal corporation, has authorized the execution of this Agreement by its City Manager and attested by its City Clerk under authority of Resolution No. 2023-_______, adopted by the Council of the City of Modesto on the _____________ day of _____________________, 2023 and _____________________has caused this Agreement to be duly executed.
#19..
- 917 -

PROPOSAL FOR
Olea Edge Analytics Solutions & Services
Date: February 1, 2023
From: Olea Networks Inc. DBA Olea Edge Analytics
To: City of Modesto, CA

PROPOSAL
This Proposal agreement (“Proposal”) is between Olea Networks, Inc. DBA Olea Edge Analytics (“Olea”) and City of Modesto (“Client”) for the services defined by mutually agreed upon Scope of Services (“Services”). Any modification to our installation and service procedures will not remove functionality without the written consent of both parties. The above Services are detailed in the attached Scope of Services and are incorporated herein by reference. This Proposal is valid for 30 days from above date.

PURPOSE
Implement Olea Technology and services used to identify water loss by continuously monitoring water meters, leaks in pipes, pressure reducing valves, valves, and other assets.

Olea Technology has been demonstrated to have a significant positive Impact on:
● Water Loss Reduction
● Water Conservation,
● Billing Accuracy & Revenue,
● Reducing Customer Disputes,
● Improving Maintenance Processes & Response Time,
● Improving Asset & Knowledge Management,
● and Operational Transparency.

BACKGROUND
The City of Modesto has a desire to implement new technology & services to expand, improve and augment the ongoing water loss management program beyond traditional approaches. The City of Modesto has an extensive water distribution network and desires to understand and alleviate actual sources and causes of water loss within their network.

These sources and causes of water loss can be identified by deploying a network of sensors across the distribution system including:
● Large commercial & industrial water meters
● Pressure Reducing Valves
● Shut-off valves
Modesto Proposal -200 Meters (09182022) Page 1
#19..
- 918 -
● Fire hydrants
● Back Flow Prevention Devices
● Vaults & Enclosures
● Other assets & locations within the water distribution system.

Olea deploys state of the art edge computing technology with advanced analytics, artificial intelligence, and machine learning to help utilities manage their distribution system and eliminate water loss. The edge computing network supports a wide variety of sensors Including:
● Optical
● Vibration
● Magnetic
● Pressure
● Temperature
● Acoustic
● Other sensor utilizing the latest technology
Olea's business model provides turnkey implementation of advanced sensor networks to utilities to ensure utilities are always using the latest and best in class technology.

Technology is evolving on a yearly and even a monthly basis making traditional capital acquisition of technology with a life expectancy of 10 or more years no longer a viable approach to effectively serve the need of the community a utility serves.

Olea has developed unique and proprietary approaches to monitor certain assets within the utility distribution system. These approaches are patented and unique to Olea due to our ability to deploy advanced edge computers in unpowered and adverse environments. An example of a unique approach to water loss management is our ALX solution focused on commercial and industrial water meter accuracy.

Commercial and industrial meters serve utilities largest customers and short-term meter failures can have a significant adverse impact on understanding sources of water loss and on utility revenue.

Olea ALX Technology is a complete solution to identify broken, worn, and missized large water meters (sizes ranging from 1-inch to 10-inch by various manufacturers). Olea ALX Technology is not a replacement for a water meter or Advanced Metering Infrastructure (AMI)/Advanced Metering Reading (AMR) enabled meters. Rather, it is a sophisticated yet simple to use hardware, software, and service solution implemented in addition to the existing large water meters and associated AMI/AMR devices.

Olea ALX Technology is an example of the exceptional value utilities receive working with Olea to digitize their water distribution network. Olea is committed to bringing the latest and most effective solutions to utilities with a focus on eliminating all water loss.

Modesto Proposal -200 Meters (09182022) Page 2
#19..
- 919 -

TERMS OF PAYMENT
Each month, Olea will invoice Client for the Asset Survey, Initial Installation, and Annual Subscription for the Services completed in the prior month. Subscription renewals will be billed annually on the contract date. Payment terms are Net 30 from date of invoice.

TERM OF CONTRACT
The term of the project will be one year from the date of issuance of the Notice-To-Proceed.

The project may be renewed for terms of not less than one year by mutual agreement of both parties in writing.

PROPRIETARY TECHNOLOGY AND SECURITY
Olea Technology is a patent protected one-of-a-kind solution available only from Olea and qualifies for sole source procurement practices. Olea Technology is protected by multiple patents including but not limited to:
● Retrofit Device and Method of Retrofitting Flow Meter (Patent US 2017/0234709 A1) approved March 21, 2019
● Portable Wireless Mesh Device with improved Antenna Systems (Patent US 2015/0072628) issued June 6, 2017
● System and Method for Data Management Structure Using Auditable Delta Records in a Distributed Environment (Patent US 2017/0163733) published June 8, 2017 The combination of this patented technology, combined with Olea’s proprietary software systems result in Olea Technology offering many unique features not available from any other supplier including but not limited to:
● Turnkey installation, which is easily scaled, requires no communication infrastructure investment or utility resources;
● Retrofits onto any brand and model, single or compound mechanical water meter; ● Unique and proprietary passive sensor array that does not interfere with water meter operation, does not require water service interruption to customers, and does not interfere with current billing process or practices;
● Unique and proprietary analytics to monitors and identify error conditions, including but not limited to, the following: 1) stuck register, encoder reporting error, register failures; 2) cross-over valve stuck or incomplete seating; 3) register magnetic decouple from the unitized measuring element (UME); 4) UME element wear and/or mechanical failure; 5) presence of backflow; 6) premature cross-over opening, 7) stuck or non-operable cross over; 8) by-pass monitoring; 9) pressure monitoring; and 10) right-sizing determination;
● Unique and proprietary analytics determining & recommending specific corrective action for condition(s) listed above;
Modesto Proposal -200 Meters (09182022) Page 3
#19..
- 920 -
● Unique and proprietary dashboard and presentation layers including but not limited to: a portfolio dashboard presenting prioritized corrective actions; an asset dashboard presenting detailed information on assets, usage and alerts; and a condition dashboards presenting detailed data and analysis results related to specific failure modes. Dashboards will reference 1) meter customer, 2) City of Modesto service area, 3) service point ID, 4) service address, and 5) non-revenue water recovery volume estimate (centum cubic feet/month; ● Unique and proprietary AI and ML video/optical analytics capability combined with sub-second data sampling of multiple hall-effect and acoustic sensors; ● Unique, proprietary, and patented device and data security strategies including but not limited to dedicated nested Internet Protocol Security tunneling, Trusted Platform Module (TPM), and patent protected block-chain ledgering delivering an upgradeable and expandable edge computing infrastructure with best-in-class security and data integrity;
● Unique and proprietary edge computing hardware which is AI/ML capable, upgradable, expandable (more sensors, more data), ruggedized, power efficient, self-monitoring and waterproof. Olea’s edge computing hardware enables the processing of complex and customizable AI and ML analytics in unpowered and adverse environments; and
● Unique and proprietary battery management system manages and maintains the health of edge computer hardware and batteries.

Modesto Proposal -200 Meters (09182022) Page 4
#19..
- 921 -

TERMS AND SCHEDULE
Olea Terms and Conditions and Scope of Services, each attached hereto, are incorporated by reference into this Proposal.

The authorized signatories for the parties acknowledge and accept this Proposal as of the date first set forth above.

OLEA NETWORKS, INC. CITY OF MODESTO
By:______________________________ By:____________________________ Title:_____________________________ Title:___________________________ Date:_____________________________ Date:___________________________ Olea: Olea Edge Analytics
Legal Entity: Olea Networks Inc. DBA Olea Edge Analytics Mailing Address: 12912 Hill Country Blvd., Suite F245, Austin, TX 78738 Physical Address: 12912 Hill Country Blvd., Suite F245, Austin, TX 78738 Contact Name: Brett Baldwin
Title Vice President of Sales
Phone Number: +1(844) 653-2638
Email Address: [email protected]
Client: City of Modesto
Address: 1010 10th St., Modesto, CA 95354
Contact Name: Jeremy Parnell
Title
Phone Number:

Water Superintendent
(209) 342-4599
Email Address: [email protected]
Modesto Proposal -200 Meters (09182022) Page 5
#19..
- 922 -

SCOPE OF SERVICES
By Olea Edge Analytics
For City of Modesto, CA
This Scope of Services is for the following:
● ALX - Meter Health Analytics on 200 Water Meters

PROJECT MANAGEMENT SERVICES
PM1) Project Schedule and Work Plan for Utility Review and Approval PM2) Safety and Communication Plan for Utility Review and Approval PM3) Project Management Video Kick-Off Call
PM4) Project Management Monthly Video Call with Project Updates PM5) Project Tracking of critical events and corrective actions

PROJECT SERVICES
P1) Management Briefing Sheet with FAQs and project goals P2) Site Survey Reports for each asset Location. Reports include:
● Pictures of existing asset and location conditions
● Assessment of safety protocol for installation activities P3) Olea sensor and edge computer Installation and Service ● Initial sensor and edge computer installation on each asset ● Training for Client to remove the sensors (in case of emergency or asset repairs) ● Training for Client to Reinstall sensors packages post repair ● Coordinate with City of Modesto to log hardware installation into IPS system P4) Olea System Monitoring & Communication
● Access and training to the Utility Dashboard
● Initial Finding Reports for each asset
● Repair Confirmation, validating the repairs were completed as intended not less than 30 days after sensors have been reinstalled
● Monitoring of assets, sensors, and edge computers
P5 Removal & Reinstallation of Hardware
● Removal of Olea Hardware for the purposes of Meter Repair - $150.00 per occurrence.
● Re-Installation of Olea Hardware post meter repair - $250.00 per occurrence. ● Unless otherwise directed by Client, Olea will re-Install hardware on meter 14 days after hardware removal.

Modesto Scope of Service (102022) Page 1 of 2
#19..
- 923 -

METER SELECTION
MS1) Client will provide Olea with a list of assets per the project scope defined above.

EQUIPMENT DELIVERABLES
E1) 200 – MHA 100 Edge Computing Units with cell-based communication and antenna E2) 200 – MHA 100 Sensor Packages
E3) 200 – MHA 100 Power Supply – as determined by site visit Please note Olea's solutions are delivered as a service and as such all equipment delivered remains in the ownership of Olea Edge Analytics and may be upgraded or replaced as necessary to maintain or improve the service.

LIMITATIONS OF USE
LU1) Olea reserves the right to not Install Olea technology, at Olea's sole discretion, on assets or locations which are not safe or do not offer the ability for successful Installation and operation of Olea technology.

PROJECT BUDGET
Please note unit price remains the same for any project of 100 units or more.

Item Qty Unit Price Total Price
ALX - MHA100 Annual Subscription 200 $1200 $240,000
ALX - MHA100 Initial Installation 200 $250 $50,000
ALX - Asset Survey 200 $250 $50,000
Total $340,000
Renewal Schedule
Year 1 Year 2 Year 3 Year 4 Year 5
$340,000 $240,000 $240,000 $240,000 $240,000
*Based on 200 unit agreement
Modesto Scope of Service (102022) Page 2 of 2
#19..
- 924 -

OLEA TERMS AND CONDITIONS
These Terms and Conditions are effective on the date set forth on the Quote (“Effective Date”) and with the Client set forth on the Proposal (“Client”) and OLEA NETWORKS, INC. hereinafter referred to as the "Olea" (collectively referred to as the “parties”).

WITNESSETH:

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

Olea shall provide Olea technology and services (“Olea Technology”) based upon the Proposal, these Terms and Conditions and the Scope of Services (“Agreement”). In the event of conflicts between the documents, the following order of precedence shall apply: i) Proposal; ii) Scope of Services; and iii) Terms and Conditions.

No representations, arrangements, understandings, or agreements relating to the subject matter exist amongst the parties except as expressed in this Agreement.

1.0 SCOPE OF SERVICES
The scope of services to be performed shall be as set forth in the Scope of Services, as specifically set forth in Exhibit A (“Services”).

2.0 TERMS AND CONDITIONS
This Agreement is subject to the following Terms and Conditions:

2.1 Term: The term of this Agreement shall cover the period set forth in the Proposal (‘Term”).

2.2 Equipment: The Services shall include use of equipment provided by Olea during the Term (“Equipment”), as specifically set forth in Exhibit A. Title to equipment set forth in the SOW (“Equipment”) shall remain with Olea at all times. Olea will arrange for setup, installation, and start-up testing of the Equipment to ensure that it complies with the operating with Olea’s operating standards. Client agrees: (i) to maintain and operate the Equipment only in accordance with published documentation, and (ii) not to make any alterations or modifications to the Equipment. At the end of the Term, Client shall return the Equipment to Olea or at Olea’s expense or allow Agreement or to reasonable access to remove the Equipment.
1 #19..
- 925 -

2.3 Use of Software: During the Term of this Agreement, Olea grants to Client a limited, non-exclusive, non-transferable, non-assignable right to use the installed and web-based applications provided by Olea and intended for use with the Services (“Software”) solely with Services during the Term. Client agrees that it will not: (i) attempt to copy, modify, duplicate, create derivative works from, frame, mirror, republish, download, display, transmit, or distribute all or any portion of the Services; (ii) attempt to reverse compile, disassemble, reverse engineer, or otherwise reduce to human-perceivable form all or any part of the Services; (iii) license, sell, rent, lease, transfer, assign, distribute, display, disclose, or otherwise commercially exploit the Services, or otherwise make the Software available to any third Party (e.g., as a service bureau); (iv) use the Software for any purpose other than their intended purpose; or (v) circumvent or disable any security or other technological features or measures of the Software.

2.4 IP Ownership: Olea retains all of its right, title and interest in the Services, Software and all modifications and derivative works made, including all intellectual property rights therein. To the extent Client acquires any right, title or interest in such intellectual property rights, Client agrees to and does hereby assign to Olea or its designee, all rights, title, and interest (including all IP rights) in and to such intellectual property.

2.5 Insurance: Unless otherwise specified in writing by Client, Olea shall maintain, for so long as this Agreement is in effect, the following types and amounts of insurance coverage: (a) with respect to any Agreement covering work or Services performed for Client, regardless of location: Commercial General Liability insurance with a limit of liability that is not less than $1,000,000 combined single limit; $2,000,000 in aggregate and (b) with respect to any Agreement covering work or Services performed on property owned or leased by Client, or on property otherwise operated by or on behalf of Client: (i) Workers’ Compensation insurance which satisfies applicable statutory requirements; (ii) Professional Liability insurance with a limit of liability that is not less than $1,000,000 and in aggregate per claim; (iii) Cyber E/O of $5,000,000 per claim and in aggregate; and (iv) Automobile Liability insurance with a limit of liability that is not less than $1,000,000 combined single limit.

Olea hereby covenants and agrees as follows: (a) each such insurance policy shall be underwritten by a responsible and solvent insurance company that is acceptable to Client; (b) the insurance coverages specified above shall constitute minimum requirements; and (c) upon request by Client, Olea shall promptly furnish Client with copies and/or certificates of insurance evidencing the insurance coverage specified above. Nothing contained herein shall be deemed to constitute a waiver of Client’s sovereign immunity under law.

2.6 General Warranty and Limitation of Liability: Olea hereby represents and warrants to Client that Equipment and/or Services supplied hereunder shall: (A) conform to the requirements of the Agreement, including Exhibit A; (B) meet or exceed standard industry practices and procedures; (C) be manufactured, produced, furnished and/or performed in accordance with Applicable Law (as Olea Terms and Conditions (091422a)
2 #19..
- 926 -
defined below); (D) be free from defects in design, workmanship and materials; (E) be delivered and conveyed to Client free and clear of any liens, claims or encumbrances of any nature whatsoever; and (F) to the best of Olea’s knowledge, the Equipment furnished under this Agreement will not infringe upon any United States patent, copyright, trademark, trade secret, or other intellectual property rights. Olea shall have no warranty obligations for Services or Equipment when due to: i) improper use or use not in compliance with published documentation or instructions provided by Olea; ii) negligent or improper maintenance or Equipment; ii) failure to maintain equipment interoperating or required for use with the Services or Equipment, including without limitation, pipes and valves. Olea, at its own cost and expense, has obtained, or will obtain, prior to the delivery of any Equipment or performance of any Services, hereunder, all approvals required by Applicable Law in connection with the transactions contemplated hereby, and Olea will furnish Client, upon request, with copies or other satisfactory evidence of all such approvals. As employed herein, the term “Applicable Law” shall mean all federal, state, and local laws, rules, regulations, orders, codes, ordinances, and regulations applicable to the transactions contemplated by the Agreement and to the Equipment and/or Services supplied hereunder. Except as specifically set forth in this Agreement, the Parties disclaim all other warranties, express or implied. In addition, neither Party shall be liable to the other party for any lost profits, revenues or indirect, special, incidental, consequential, cover or punitive damages, whether in tort or contract, or for amounts greater than fees paid to Olea during the term of this Agreement.

2.7 Indemnification: Olea shall defend, indemnify and hold harmless Client and Client’s members, officers and employees from and against any and all claims, losses, liabilities, damages and expenses (including reasonable attorneys’ fees and costs) (collectively, the “Losses”) arising out of or in connection with:
(1) any material breach of the representations, warranties, agreements and covenants of Olea contained in the Agreement ; (2) any injuries to persons or property caused by any grossly negligent or wrongful act or omission of the Olea or its subcontractors, vendors, employees, or other authorized representatives; (4) any claims filed against Client by a subcontractor or employee of Olea; or (5) any claims or suits for infringement of United States or foreign patents, copyrights, trademarks, trade secrets, or other intellectual property rights or claims of unfair competition arising out of or resulting from Client’s purchase, use, and/or possession of any Equipment and/or Services furnished under the Agreement.

2.8 Default and Termination: Each of the following events shall constitute a default for purpose of this Agreement (each of which shall entitle the non-breaching Party to terminate for default in accordance with this Section):
(a) any bankruptcy proceeding by or against either Party or the appointment of a trustee for the benefit of creditors; or (e) a breach by either Party or failure and failure to cure such breach within 30 days following written notice by the non-breaching Party. In the event of termination for default, Client shall not be liable to Olea for payment of any amount beyond the value of any Olea Terms and Conditions (091422a)
3 #19..
- 927 -
conforming Equipment and Services shipped or received and accepted by Client.

3.0 COMPENSATION
Total compensation for the Services shall be set forth in the Scope of Services.

4.0 GENERAL

4.1 Confidentiality
A. Olea Confidentiality
Olea acknowledges and understands that its employees may have access to proprietary, business information, or other confidential information belonging to Client. Therefore, except as required by law, Olea agrees that its employees will not:

1. Access or attempt to access data that is unrelated to their job duties or authorizations as related to this Agreement.

2. Access or attempt to access information beyond their stated authorization.

3. Disclose to any other person or allow any other person access to any information related to Client or any of its facilities or any other user of this Agreement that is proprietary or confidential. Disclosure of information includes, but is not limited to, verbal discussions, FAX transmissions, electronic mail messages, voice mail communication, written documentation, “loaning” computer access codes and/or another transmission or sharing of data.

Olea understands that Client, or others may suffer irreparable harm by disclosure of proprietary or confidential information and that Client may seek legal remedies available to it should such disclosure occur. Further, Olea understands that violations of this provision may result in termination of the Agreement.

Olea understands that information and data obtained during the performance of this agreement shall be considered confidential, during and following the Term of this Agreement, and will not be divulged without the Client’s written consent and then only in strict accordance with prevailing laws. Olea shall hold all information provided by Client as proprietary and confidential and shall make no unauthorized reproduction or distribution of such material.

Notwithstanding the foregoing, Olea shall be permitted to use Client data in an anonymized and deidentified format to improve the Services.

B. Client Confidentiality
In addition, Client understands that certain information provided by Olea during the performance of this Agreement may also contain confidential or Olea Terms and Conditions (091422a)
4 #19..
- 928 -
proprietary information. Client shall hold all information provided by Olea as proprietary and confidential and shall make no unauthorized reproduction or distribution of such material, subject in all instances to the applicable state freedom of information act.

4.2 Force Majeure
A party is not liable for failure to perform the party's obligations if such failure is as a result of Acts of God (including fire, flood, earthquake, storm, hurricane or other natural disaster), war, invasion, act of foreign enemies, hostilities (regardless of whether war is declared), civil war, rebellion, revolution, insurrection, military or usurped power or confiscation, terrorist activities, nationalization, government sanction, blockage, embargo, strikes at national level or industrial disputes at a national level, or strike or industrial disputes by labor not employed by the affected party, its subcontractors or its suppliers and which affect an essential portion of the contracted for works but excluding any industrial dispute which is specific to the performance of the works or this contract, interruption or failure of electricity or telephone service.

If a party asserts Force Majeure as an excuse for failure to perform the party's obligation, that party must promptly notify the other party giving full particulars of the event of force majeure and the reasons for the event of force majeure preventing that party from, or delaying that party in performing its obligations under this contract and that party must use its reasonable efforts to mitigate the effect of the event of force majeure upon its or their performance of the contract and to fulfill its or their obligations under the contract.

4.3 Authorization to do Business: Olea represents that: (a) it is authorized to transact business in the state where Client resides; and (b) it shall not allow its existence to lapse or its certificate of authority or registration to transact business in such state, to be revoked or canceled at any time during the term of this Agreement.

4.4 Waiver: Any waiver by a Party of any breach by the other Party of any term or condition of the Agreement shall not constitute a waiver of any subsequent breach of the same or any other term or condition hereof. The rights and remedies of Client set forth herein are not exclusive but are in addition to all other rights and remedies of Client under applicable law.

4.5 Survival: Sections 2.4 through 2.9, Sections 3 and 4 shall survive any expiration or termination of this Agreement for any reason.

4.6 Governing Law; Venue; Waiver of Jury Trial: The Agreement (and the transactions contemplated hereby) shall be governed in all respects, whether as to validity, construction, capacity, performance or otherwise by the laws of the state where Client resides, without reference to conflict of laws principles.

Olea Terms and Conditions (091422a)
5 #19..
- 929 -
Any action or proceeding arising out of or related to the Agreement shall be brought only in the courts of competent jurisdiction in the state where Client resides. The parties hereby consent to such venue and to the jurisdiction of such courts over such proceeding and themselves. The parties waive any right to a jury trial in connection with any such litigation.

4.7 No Assignment, Substitutions or Modifications: Olea shall not assign or subcontract any right or obligation under the Agreement without Client’s prior written consent. No substitution, change, modification, or deviation from the terms of the Agreement shall be made without prior written authorization from Client.

4.8 Entire Agreement: The Agreement, together with all exhibits and attachments hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior proposals, understandings, and agreements, whether oral or written between the parties with respect to the subject matter hereof.
---End of Agreement---
Olea Terms and Conditions (091422a)
6 #19..
- 930 -
1 SOLE SOURCE # 2324-07 Meter Health Analytic
Software - Olea Networks, Inc.

BID FORM F - FINANCIAL INTEREST DISCLOSURE
Any contract award to result from this IFB process and Bidder’s submission of a Bid therewith will require approval by a majority vote of the City of Modesto’s City Council. In order to have full transparency in any City of Modesto commercial actions, the City Council may not approve an agreement between the City and the Bidder until all person with a direct or indirect financial interest of greater than $2,000 in the Bidder are identified by name.

Bidder must therefore complete this Bid Form F – Financial Interest Disclosure, listing by name all parties that have a material financial interest in the agreement, contract or development right.

PLEASE NOTE, any Council action that requires a Financial Interest Disclosure cannot be considered by the City Council until the required reporting is made. That means that City Council agenda items without the disclosure will be removed from the Council agenda.

Financial Interest Disclosure to City of Modesto
The Bidder shall identify any person with a financial interest in the Bidder by name, below.

For the purposes of this disclosure, a “Financial Interest” shall have the meaning contained in Modesto Municipal Code section 2-10.02.

Persons having an aggregate economic interest in the Bidder less than two thousand dollars ($2,000.00) at all times prior to final Council action of the proposed contract are not required to be listed on the Financial Interest Disclosure.

Notwithstanding the foregoing, a Financial Interest Disclosure is not required for a Bidder meeting the financial criteria for listing on the New York or the Pacific Stock exchanges unless it is reasonably foreseeable that a City Council decision will increase or decrease that entity's gross revenues or expenses by one million dollars ($1,000,000) or more and the requirements of Modesto Municipal Code Section 2-

10.03(h) are satisfied.

It is the legal obligation of all applicants for approval of an agreement or of an application for development rights to verify in writing, under penalty of perjury, that the identity of each person having a material financial interest in the Bidder is true, correct and complete. By signing below, the applicant understands that this information is provided under penalty of perjury, and that intentionally supplying misinformation or deception may result in either invalidation of the agreement or application, or criminal prosecution for misdemeanor violation of the Modesto Municipal Code, or both. Negligent provision of misinformation shall be grounds for invalidation. In accordance with the Modesto Municipal Code, each applicant has a continuing obligation to maintain the truth, accuracy and completeness of the financial interest disclosure information provided below until after final consideration by the City Council of any matter arising out of or relating to the agreement or application.
#19..
- 931 -
2 SOLE SOURCE # 2324-07 Meter Health Analytic
Software - Olea Networks, Inc.

Print Names of Persons Having a Financial Interest in Bidder Receiving this Agreement:

First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
First Name, Last Name
By signing this document, I agree to the information contained within.

Bidder Company Name:

Name of Bidder Signatory:

Signature of Bidder Representative:

D&S Pearce Family Partnership
Pearce Family Trust Dated December 30, 1999
Dave Preische
Brian (Connor) White
Shanti Family Trust LLC
Stefan Grefen
Astrid Jaehde
Andrew Kodis
Pete Selda
Insight Venture Partners
Ananda OM LLC
Michael Schwabe
Laizhong Luo
Mercury Fund
CONTINUED on page 3
David Mackie
#19..
- 932 -
Print Names of Persons Having a Financial Interest in Bidder Receiving this Agreement (continued):

First Name, Last Name AnantaFO Foundation LLC
First Name, Last Name Race Point Capital Fund II LLC
First Name, Last Name Paul Whipple
First Name, Last Name Tom Metz
First Name, Last Name Ganapathi Living Trust Dated May 20, 2013 First Name, Last Name
David and Naomi Parker Living Revocable Trust Dated
August 5, 1994
First Name, Last Name Braidedtrio, LLC
First Name, Last Name
The R. David Hoover Revocable Trust as amended and
restated
First Name, Last Name Renewal4 Limited Partnership
First Name, Last Name Renewal4 US Limited Partnership
First Name, Last Name Jimmy Treybig
First Name, Last Name Wesley Kemp
#19..
- 933 -
#19..
- 934 -
#19..
- 935 -
#19..
- 936 -
#19..
- 937 -
#19..
- 938 -

CITY OF MODESTO

COUNCIL AGENDA REPORT
DATE OF MEETING:

December 5, 2023
Date: November 7, 2023
TO: Mayor and City Council
THROUGH: Joseph P. Lopez, City Manager
FROM: Jessica Hill, Director of Community and Economic Development SUBJECT: Amendment to the General Plan adopting the 6th Cycle Housing Element 2023-2031
CONTACT: Michael Hren, Principal Planner,
[email protected], 209-577-5273
DESCRIPTION:

Hearing to consider adopting an Amendment to the General Plan approving the 6th Cycle Housing Element for 2023-2031. (Funding Source: General Fund)
STRATEGIC PLAN ELEMENT:

The recommended action supports the City’s (2020-2025) Strategic Plan, Goal C: Develop a Homelessness and Housing Plan
BACKGROUND:

The purpose of this General Plan amendment is to adopt the 6th cycle Housing Element in compliance with the State of California Government Code Section 653021 and in conformance with the Housing Element Guidelines as established by the California Department of Housing and Community Development (HCD). HCD is the state agency responsible for review the City’s Housing Element and determining whether or not it is in substantial compliance with applicable laws and regulations.

The Housing Element identifies goals, policies, and programs that guide housing policy for the City for the 2023–2031 planning period. The goals, policies, and programs are generally consistent with the direction of the City’s other General Plan elements. It is expected that the separate General Plan Update will conclude after the adoption and certification of the Housing Element. Modesto’s Urban Area General Plan was adopted on August 15, 1995 in accordance 1 Government Code Section 65302:
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=65302.&lawCode=GOV #20..
- 939 -
City Council, December 5, 2023
Amendment to the General Plan adopting the 6th Cycle Housing Element 2023-2031

with Section 653002 of the Government Code. Since 1995, the General Plan has been amended by Modesto City Council Resolution Nos. 95-584, 96-20, 96-338, 96-639, 97-3, 97-137, 97-158, 98-293, 99-162, 99-564, 2000-303, 2000-633, 2001-47, 2001-476, 2002-154, 2002-526, 2003-101, 2003-122, 2004-233, 2005-70, 2007-066, 2007-599, 2008-142, 2008-583, 2009-419, 2011-253, 2011-254, 2011-435, 2012-430, 2014-17, 2014-422, 2015-262, 2016-34, 2017-21, 2019-109, 2022-100, 2022-193, and 2022-449.

California requires each city to include in its General Plan a Housing Element, which must be updated every eight years pursuant to Government Code Section 65580 et. seq The Housing Element draws on the feedback and results of the Modesto Housing Plan, adopted by the City Council in 2022, and implements some of the policies. Guided by community feedback throughout the process, the Housing Plan worked to promote greater housing diversity and opportunities. This input and feedback guided staff to make zoning and policy recommendations for enabling a wide range of housing choices at all levels of affordability.

City staff, in coordination with a consultant team from Michael Baker International, have been working on updating the Housing Element for many months and have been involved in extensive public outreach. An interactive housing element update webpage, launched on May 23, 2023, included a description of the project, workshop dates and materials, how to provide input, how to subscribe to the project email list, and a link to the Housing Element update survey.

An online community survey was also created for the Housing Element Update, and offered in Spanish and English. The City received 89 completed surveys and will continue to collect and analyze surveys through the Housing Element planning process.

Three focus groups were held, between May 23 and May 31 to gather input from community members and housing service providers. The organizations that participated in the focus groups included: The Chamber of Commerce, Korazón.io Konsultants, the Building Industry Association of Central California, the City Ministries Network, Habitat for Humanity, Tuolumne River Trust, West Modesto Community Collaborative – People of Action Council, Stanislaus Regional Housing Authority, El Modesto Commitè, Community Housing & Shelter Services, and Project Sentinel.

Two virtual community workshops were held on Thursday, July 6, 2023, and Wednesday, July 12, 2023, to gather input regarding issues the community faces and recommendations to alleviate the identified housing issues. Both workshops had simultaneous Spanish translation as well as the question and answer in portion in Spanish. The website was updated to include information about the community meetings and the City sent emails to notify individuals on the mailing list which included stakeholders, community service providers, and members of the public. The links to the presentation video recording were posted on the Housing Element Update website.

Additional meetings were held with Modesto Commitè on Monday, July 10, 2023, West Modesto Collaborative held on Wednesday, July 12, 2023, and Emanuel Lutheran Church on Wednesday, July 19, 2023, were all held to gather input from community members.

The City extensively advertised opportunities to participate and used various forms of media to reach the diverse population of Modesto. Efforts to notify the community about engagement 2 Government Code Section 65300:
https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=65300.&lawCode=GOV #20..
- 940 -
City Council, December 5, 2023
Amendment to the General Plan adopting the 6th Cycle Housing Element 2023-2031

opportunities include the following: Social media postings on the City of Modesto’s Facebook and Instagram pages as well as Nextdoor, email notifications to the interested parties contact list, and the project page on the City’s website.

After a public input period during which a draft was available for public comment on the City’s website from June 16 through July 17, 2023, an initial draft of the Housing Element was submitted to HCD on July 31, 2023. City staff was able to meet with HCD reviewers on September 27, 2023, to receive preliminary comments on the initial draft. Based on that feedback, staff and the consultant team prepared a revised version of the Draft Housing Element, which was available for public comment on the City’s website from October 16 through October 22, 2023. Staff submitted a revised draft to HCD on October 23, 2023.

HCD provided its formal letter responding to the draft on October 30, 2023. In response, staff prepared the attached draft which is updated to address HCD’s comments. Staff is proposing that the City Manager or his designee be permitted to make non-substantive changes or amendments requested by HCD to achieve state certification of the Housing Element. Such changes by the City Manager shall not change the policy of the City or include any legislative action.

DISCUSSION:

The Housing Element is a section of the General Plan required by State Law that the City is required to update by December 31, 2023. The Housing Element covers an eight-year planning period, in this case from 2023-2031. The City’s proposed amendments to the Housing Element covers a number of areas related to housing:
 Review of Past Accomplishments
o The Review of Past Accomplishments section reviews the results of the previous housing element’s goals, objectives, and programs; compares what was projected or planned in the previous housing element to what was achieved; and determines where the previous housing element met, exceeded, or fell short of what was anticipated. Based on the above analysis, this section also describes how the goals, objectives, policies, and programs in the updated housing element are being changed or adjusted to incorporate what has been learned from the results of the previous housing element.
 Housing Needs Assessment
o The Housing Needs Assessment section analyzes the varied needs of all segments of the community. The assessment evaluates characteristics that inform housing need including population trends, demographics, employment trends, household characteristics, housing stock characteristics, housing inventory and market conditions, and preservation of at-risk units. The assessment also analyzes housing needs of various special needs groups, including elderly persons, large households, female-headed households, persons with disabilities (including developmental disabilities), homeless persons, farmworkers, and extremely low-income households. These components are presented in the context of the City of Modesto, Stanislaus County, and other regional or neighboring areas as appropriate. The housing needs assessment guides the identification of appropriate goals, policies, and programs for the City to implement during the 2023–2031 Housing Element cycle.
#20..
- 941 -
City Council, December 5, 2023
Amendment to the General Plan adopting the 6th Cycle Housing Element 2023-2031

 Affirmatively Furthering Fair Housing (AFFH)
o Pursuant to Assembly Bill (AB) 686, the Housing Element must provide an analysis of barriers that restrict access to opportunity and a commitment to specific meaningful actions and how the identified Regional Housing Needs Allocation (RHNA) sites affirmatively further fair housing. AB 686 requires jurisdictions to identify meaningful goals to address the impacts of systemic issues such as residential segregation, housing cost burden, and unequal educational or employment opportunities to the extent these issues create and/or perpetuate discrimination against protected segments of the population. Included in the Housing Element’s AFFH analysis is a required examination of issues such as segregation and resident displacement, as well as the required identification of fair housing goals, and an assessment of fair housing which includes the following components: a summary of fair housing issues and assessment of the City’s 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.  Constraints on Housing
o This section identifies and evaluates those factors that may pose significant constraints or burdens that may limit or constrain the production of housing to meet Modesto’s local and regional housing needs and the goals and objectives of the General Plan. Such constraints, particularly those that limit the construction of or fair access to affordable housing, must be addressed with clear, measurable, and timely programs. There are generally two types of constraints: governmental and nongovernmental. Governmental constraints include the policies, regulations, and procedures that directly affect housing. This includes the goals, policies, and programs of the General Plan and the development standards and requirements of the Zoning Ordinance and other land use ordinances. Nongovernmental constraints include those factors that are beyond the direct control and authority of the City. A portion of a later chapter; Goals, Policies, and Programs is dedicated to removal and reduction of constraints.
 Sites and Resources
o The Sites and Resources section of the Housing Element provides an overview of available land resources and residential sites for future housing development; evaluates how these resources can satisfy future housing needs; reviews financial and administrative resources available to support affordable housing; and discusses resources available for the development, rehabilitation, and preservation of housing in Modesto.
 Goals, Policies, and Programs
o This section of the Housing Element outlines the City of Modesto’s goals, policies, and implementation programs for the preservation, conservation, improvement, and production of housing for the 2023–2031 planning period. The goals, policies, programs, and quantified objectives are designed to help ensure housing opportunities for all existing and future residents of the community. One of the major tasks that the City must accomplish in the Housing Element, is to provide its plan to accommodate the Regional Housing Needs Allocation (RHNA). The RHNA is the number of units of housing that the City is required by the State to provide #20..
- 942 -
City Council, December 5, 2023
Amendment to the General Plan adopting the 6th Cycle Housing Element 2023-2031

sufficient, appropriately zoned land for during the eight-year planning period. For the 6th Cycle Housing element, the City’s required RHNA is 11,248 units. The City proposed a plan to meet the RHNA requirements, through a mixture of methods, including recent and pending projects, accessory dwelling units, vacant and underutilized sites, and adding a mixed use zone that was applied to some of the commercial corridors. To provide adequate sites to meet its housing need, the City proposed the creation of two Mixed-Use Zones and the rezoning of parcels along the McHenry Avenue, Sisk Road, Oakdale Road, and Yosemite Boulevard. These zoning changes were recently approved by the City Council. Some of the other goals, policies, and programs that Modesto proposes in this section include:
 Revising residential densities. This change will also make it so that the zoning and General Plan densities align and will revise the Medium-High Density (R-3) residential zone has a higher maximum allowable density of 45 dwelling units per acre than is currently allowed to promote denser infill development.
 Making the City’s residential sites inventory available to developers by publicizing it on the City website, with annual updates.  Utilizing $500,000 of American Rescue Act funds, develop a Housing Trust Fund that can be used for new construction, acquisition and/or rehabilitation, and subsidy, or other means to assist other governmental agencies, nonprofit groups and private organizations or individuals in creating or maintaining affordable housing.
 Pursuing permit streamlining and incentives for affordable housing projects through process modifications including Capital Facilities Fee waivers and updating the Zoning Code to allow for ministerial approval for affordable housing projects that are 100% affordable with a minimum of a 20-year affordability.
 Many other programs and policies that will support housing during the eight-year timeframe of this Housing Element.
 Sites Inventory Map and List
o This section shows and lists the sites used in accommodating the Regional Housing Needs Allocation (RHNA), including details about those sites such as acreage, existing use, proposed income levels for the allowable units, and whether the land is publicly owned.
o The City of Modesto’s RHNA required by the State is 11,248 units. The sites inventory map and list show how Modesto is ensuring the availability and fair distribution of housing and complying with the RHNA obligations. The City must always maintain enough sites to meet the 11,248-unit RHNA during the planning period. The City’s obligation is to provide sufficient land, zoned appropriately to accommodate the RHNA. The City is not obligated to construct housing. o The breakdown of the units Modesto must accommodate by income level is:
 Very Low-Income Units: 2,807
 Low-Income Units: 1,943
 Moderate-Income Units: 1,981
 Above Moderate-Income Units: 4,517
 Total Units: 11,248
o The City has also elected to provide an additional 15% buffer of units in addition to the requirements. This buffer will provide the City with the flexibility to handle #20..
- 943 -
City Council, December 5, 2023
Amendment to the General Plan adopting the 6th Cycle Housing Element 2023-2031

unforeseen challenges relating to the proposed sites as they arise without the Housing Element falling out of compliance with HCD regulations.

Staff determines that based on substantial evidence in the record, including but not limited to:
documentation of planned and realized densities of recent and proposed developments, potential of affordable housing in coexistence with institutional uses, the size of suitable development areas and pockets of land on nonvacant sites, large increases in residential land values, continued high market demand for residential units and desire to situate in the Modesto community, conservatively low development yields and redevelopment assumptions; that there is sufficient space on non-vacant sites identified in the sites inventory to accommodate Modesto’s Regional Housing Needs Allocation (RHNA) to support infill development and that the existing uses on said non-vacant sites identified in the sites inventory to accommodate Modesto’s RHNA obligations are likely to be discontinued during the planning period and therefore do not constitute an impediment to planned residential development on the sites during the planning period  Outreach
o This section details the public engagement done as a part of the development of the Housing Element draft, including the results of the survey.

Failure to adopt the Housing Element by the required December 31, 2023 deadline could have broad and detrimental consequences for the City as a whole. These consequences may include but are not limited to, loss of State funding, loss of future funding opportunities, reduction or loss of local land use authority, and legal action from the State or other parties. Court actions could include fines of $100,000 per month, establishment of a court receivership, suspension of authority to issue building permits or grant zoning changes, variances, and subdivision map approvals, imposition of a streamlined ministerial approval process, and more.

FISCAL IMPACT:

These proposals were initiated by the City to adopt the Housing Element in alignment with State regulations. The cost in staff time to prepare these amendments was paid from the current planning division budget. The cost of the contract with Michael Baker International for consulting services was paid in part from a LEAP 2021 Planning Grant and in part through an SB2 2019 Planning Grant.

COMMITTEE RECOMMENDATION:

This item was taken to the Planning Commission on November 6, 2023, where it was recommended to the City Council for approval.

CEQA/NEPA REQUIREMENTS:

City staff has prepared Environmental Assessment No. EA/C&ED 2023-18, which concludes that this project is exempt from further review under the California Environmental Quality Act pursuant to the sections and reasons listed below.

Section 15061(b)(3) of the CEQA Guidelines states that a project is exempt from CEQA if the activity is covered by the commonsense exemption that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. The Housing Element does not rezone any property, change the intensity of any allowed uses, authorize any project not already authorized, or itself change any regulations regarding development. Accordingly, it can be seen with certainty that there is no possibility that the passage of the General Plan Element may have a significant effect on the environment, the project is not subject to CEQA. #20..
- 944 -
City Council, December 5, 2023
Amendment to the General Plan adopting the 6th Cycle Housing Element 2023-2031

Section 15283 of the CEQA Guidelines states that CEQA does not apply to regional housing needs determinations made by the Department of Housing and Community Development, a council of governments, or a city or county pursuant to Section 65584 of the Government Code.

As the City’s Housing Element implements the regional housing needs determinations in accordance with Section 65584 of the Government Code, CEQA does not apply to this project.

Section 65584(g) of the Government Code states, “Notwithstanding any other provision of law, determinations made by the department, a council of governments, or a city or county pursuant to this section or Section 65584.01, 65584.02, 65584.03, 65584.04, 65584.05, 65584.06, 65584.07, or 65584.08 are exempt from the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).” As the General Plan Amendment adopting the 6th Cycle Housing Element is a determination made by the City of Modesto pursuant to the relevant Sections, it is therefore exempt from CEQA.

RECOMMENDED COUNCIL ACTION:

Staff Recommendations:

Resolution approving an Amendment to the Modesto Urban Area General Plan to replace the 2015-2023 Housing Element with the 2023-2031 Housing Element, Chapter IV of the General Plan and authorizing the City Manager or designee to make all non-substantive changes to the Housing Element to make it internally consistent or to address any non-substantive changes or amendments requested by the Department of Housing and Community Development to achieve state certification of the Housing Element, and that such changes by the City Manager shall not change the policy of the City or include any legislative action.

Approved by:

Jessica Hill,
Director of Community and Economic Development
Department
Joseph P. Lopez, City Manager
Attachments:

1. Resolution

2. Housing Element

3. Notice of Exemption
#20..
- 945 -
1 2023-XX

MODESTO CITY COUNCIL
RESOLUTION NO. 2023-

RESOLUTION APPROVING AN AMENDMENT TO THE MODESTO URBAN
AREA GENERAL PLAN TO REPLACE THE 2015-2023 HOUSING ELEMENT WITH THE 2023-2031 HOUSING ELEMENT, CHAPTER IV OF THE GENERAL

PLAN AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO MAKE

ALL NON-SUBSTANTIVE CHANGES TO THE HOUSING ELEMENT TO
MAKE IT INTERNALLY CONSISTENT OR TO ADDRESS ANY NONSUBSTANTIVE CHANGES OR AMENDMENTS REQUESTED BY THE

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT TO

ACHIEVE STATE CERTIFICATION OF THE HOUSING ELEMENT, AND

THAT SUCH CHANGES BY THE CITY MANAGER SHALL NOT CHANGE

THE POLICY OF THE CITY OR INCLUDE ANY LEGISLATIVE ACTION WHEREAS, Government Code Section 65300 et. seq. requires the legislative body of each city and county to adopt a comprehensive, long-term general plan for the physical development of the county or city and of any land outside its boundaries which in the planning agency’s judgment bears relation to its planning; and WHEREAS, a General Plan for the City of Modesto entitled “City of Modesto Urban Area General Plan” (UAGP) was adopted by the City Council by Resolution No. 95-409 on August 15, 1995, in accordance with Section 65300 of the Government Code; and
WHEREAS, said General Plan has been amended by Modesto City Council Resolution Nos. 95-584, 96-20, 96-338, 96-639, 97-3, 97-137, 97-158, 98-293, 99-162, 99-564, 2000-303, 2000-633, 2001-47, 2001-476, 2002-154, 2002-526, 2003-101, 2003- 122, 2004-233, 2005-70, 2007-066, 2007-599, 2008-142, 2008-583, 2009-419, 2011-253, 2011-254, 2011-435, 2012-430, 2014-17, 2014-422, 2015-262, 2016-34, 2017-21, 2019- 109, 2022-100, 2022-193, and 2022-449, copies of which are on file in the office of the City Clerk; and
#20..
- 946 -
2 2023-XX
WHEREAS, the State of California requires each city to include in its General Plan a Housing Element, which must be updated every eight years pursuant to Government Code Section 65580 et. seq.; and
WHEREAS, said Housing Element must demonstrate that a city has accommodated a certain number of dwelling units to house people of different income levels per Regional Housing Needs Allocation (RHNA) process; and WHEREAS, the City of Modesto has proposed an Amendment to the General Plan for the purpose of updating the Housing Element in compliance with the State of California Government Code Section 65302 and in conformance with the Housing Element Guidelines as established by the California Department of Housing and Community Development (HCD); and
WHEREAS, the City of Modesto has submitted a draft 6th Cycle Housing Element for the period of 2023-2031 to the Department of Housing and Community Development on July 31, 2023; and
WHEREAS, after preliminary consultation with representatives from the Department of Housing and Community Development (HCD), city staff have created, made publicly available, and submitted a revised draft of the 6th Cycle Housing Element on October 23, 2023, in order to respond to initial comments made by HCD representatives; and
WHEREAS, a comment letter from the Department of Housing and Community Development was received on October 30, 2023, identifying needed revisions to the Housing Element; and
#20..
- 947 -
3 2023-XX
WHEREAS, on November 6, 2023, the Planning Commission held a duly noticed public hearing in the Tenth Street Place Chambers located at 1010 Tenth Street, Modesto, California, relating to this proposed amendment to the Modesto Urban Area General Plan to replace the Housing Element, Chapter IV; and
WHEREAS, after said public hearing, the Planning Commission, by Resolution No. 2023-xx, recommending to the City Council an amendment to the Modesto Urban Area General Plan to approve the 2023–2031 Housing Element replacing the 2015–2023 Housing Element, Chapter IV of the General Plan; and
WHEREAS, said matter was set for a public hearing of the City Council to be held on December 5, 2023, in the Tenth Street Place Chambers located at 1010 Tenth Street, Modesto, California, at which date and time said duly noticed public hearing of the Council was held for the purpose of receiving public comment on the proposed amendment to the Modesto Urban Area General Plan, and
WHEREAS, the City Council certifies it has received and reviewed Environmental Assessment No. EA/C&ED 2023-18, which concludes that the proposed amendment is exempt from additional review under the California Environmental Quality Act (CEQA) pursuant to Sections 15061(b)(3) and 15283 of the CEQA Guidelines along with Section 65584(g) of the Government Code, and consequently no new environmental review is required.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Modesto that it hereby finds and determines that the proposed amendment to the Modesto Urban General Plan as described in Exhibit “A”, attached hereto and incorporated herein by reference, is required for the public health, safety, and welfare of the citizens of Modesto. #20..
- 948 -
4 2023-XX
BE IT FURTHER RESOLVED by the Council of the City of Modesto that it hereby determines that adoption of the proposed amendment to the Modesto Urban Area General Plan, pursuant to Sections 15061(b)(3) and 15283 of the CEQA Guidelines along with Section 65584(g) of the Government Code, is exempt from further CEQA review.

The proposed Housing Element does not rezone any property, change the intensity of any allowed uses, authorize any project not already authorized, or itself change any regulations regarding development. Accordingly, it can be seen with certainty that there is no possibility that the passage of the General Plan amendments may have a significant effect on the environment, the project is not subject to CEQA.

BE IT FURTHER RESOLVED by the Council of the City of Modesto that it hereby approves the proposed amendment to the Urban Area General Plan as described in Exhibit “A”, attached hereto and incorporated herein by reference.

BE IT FURTHER RESOLVED by the Council of the City of Modesto that it hereby determines that, based on substantial evidence in the record, including but not limited to: documentation of planned and realized densities of recent and proposed developments, potential of affordable housing in coexistence with institutional uses, the size of suitable development areas and pockets of land on nonvacant sites, large increases in residential land values, continued high market demand for residential units and desire to situate in the Modesto community, conservatively low development yields and redevelopment assumptions; that there is sufficient space on non-vacant sites identified in the sites inventory to accommodate Modesto’s Regional Housing Needs Allocation (RHNA) to support infill development and that the existing uses on said non-vacant sites identified in the sites inventory to accommodate Modesto’s RHNA obligations are likely #20..
- 949 -
5 2023-XX
to be discontinued during the planning period and therefore do not constitute an impediment to planned residential development on the sites during the planning period.

BE IT FURTHER RESOLVED by the Council of the City of Modesto that it hereby authorizes the City Manager or designee to make all non-substantive changes to the Housing Element to make it internally consistent or to address any non-substantive changes or amendments requested by the Department of Housing and Community Development to achieve state certification of the Housing Element, and that such changes by the City Manager shall not change the policy of the City or include any legislative action.

BE IT FURTHER RESOLVED by the Council of the City of Modesto that the Director of the Community and Economic Development Department is hereby authorized and directed to forward certified copies of this resolution and said amendment to the Urban Area General Plan to the Board of Supervisors and file a Notice of Determination within five (5) business days with the Stanislaus County Clerk pursuant to Section 21152 of the Public Resources Code.

The foregoing resolution was introduced at a regular meeting of the Council of the City of Modesto held on the 5th day of December 2023, by Councilmember , who moved its adoption, which motion being duly seconded by Councilmember , was upon roll call carried and the resolution adopted by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:
#20..
- 950 -
6 2023-XX
ATTEST: ____________________________
DIANE NAYARES-PEREZ, City Clerk
(SEAL)
APPROVED AS TO FORM:

By: __________________________________________
JOSE M. SANCHEZ, City Attorney

EXHIBIT A
City of Modesto Housing Element (2023-2031)
#20..
- 951 -
City of

MODESTO
Housing Element 2023-2031
HCD Review Draft #3
November 3, 2023
DECEMBER 2023
#20..
- 952 -
City of Modesto Housing Element
Table of Contents
City of Modesto i
Table of Contents
INTRODUCTION ............................................................................................................................ 1 Purpose and Content.......................................................................................................................1 Relationship to Other Elements and Plans ...................................................................................1 Public Participation ..........................................................................................................................1 Summary of Comments Received...........................................................................................................4 Public Review Period.................................................................................................................................5 REVIEW OF PAST ACCOMPLISHMENTS ...................................................................................... 3 Housing Production.........................................................................................................................3 No Net Loss and Adequate Sites .............................................................................................................4 Effectiveness at Assisting Special Needs Populations .................................................................4 Homeowner Repair Assistance Program...............................................................................................4 Seniors.........................................................................................................................................................5 Persons with Disabilities...........................................................................................................................5 Persons Experiencing Homelessness......................................................................................................5 Accessibility Improvements......................................................................................................................9 Evaluation of Previous Housing Element Programs ..................................................................10 HOUSING NEEDS ASSESSMENT................................................................................................. 43 Projected Housing Needs..............................................................................................................44 Demographic Characteristics........................................................................................................44 Population Trends.................................................................................................................................. 44 Age Composition..................................................................................................................................... 45 Race and Ethnicity.................................................................................................................................. 47 Employment Trends ............................................................................................................................... 49 Household Characteristics .................................................................................................................... 51 Housing Stock Characteristics ......................................................................................................57 Housing Age and Condition .................................................................................................................. 60 Median Home Sale Prices ..................................................................................................................... 62 Rental Prices............................................................................................................................................ 64 Vacancy Rates ......................................................................................................................................... 66 Overpayment and Overcrowding ........................................................................................................ 66 Preservation of Units At Risk of Conversion ...............................................................................69 Qualified Entities..................................................................................................................................... 70 Inventory of At-Risk Units ...................................................................................................................... 70 Preservation Options ............................................................................................................................. 71 Federal Programs................................................................................................................................... 73 #20..
- 953 -
City of Modesto Housing Element
Table of Contents
City of Modesto ii
State Programs ....................................................................................................................................... 74 Local Programs....................................................................................................................................... 74 Preservation and Monitoring of Affordable Units............................................................................. 75 Quantified Objectives............................................................................................................................. 75 Special Housing Needs ..................................................................................................................75 Farmworkers ........................................................................................................................................... 78 Large Households................................................................................................................................... 80 Female-Headed Households................................................................................................................. 83 Persons Experiencing Homelessness................................................................................................... 85 Disabilities ............................................................................................................................................... 87 Elderly Persons........................................................................................................................................ 91 Extremely Low-Income Housing Needs............................................................................................... 94 Summary of Housing Needs.........................................................................................................97 AFFIRMATIVELY FURTHERING FAIR HOUSING........................................................................ 99 Introduction....................................................................................................................................99 Public Outreach..............................................................................................................................99 Outreach Activities................................................................................................................................100 Organizations Consulted.....................................................................................................................100 Housing Element Update Website .....................................................................................................101 Stakeholder Focus Groups..................................................................................................................102 Housing Element Survey......................................................................................................................102 Community Workshops.......................................................................................................................103 Meetings with Community Organizations ........................................................................................103 Findings..................................................................................................................................................104 Assessment of Fair Housing....................................................................................................... 104 City Overview.........................................................................................................................................104 Fair Housing Enforcement and Outreach Capacity........................................................................114 Integration and Segregation...................................................................................................... 118 Race and Ethnicity................................................................................................................................118 Income....................................................................................................................................................123 Familial Status ......................................................................................................................................132 Persons with Disabilities......................................................................................................................136 Findings..................................................................................................................................................139 Racially and Ethnically Concentrated Areas of Poverty and Affluence ................................. 140 R/ECAPs ..................................................................................................................................................140 Racially or Ethnically Concentrated Areas of Affluence (RCAAs)............................................ 144 Disparities in Access to Opportunities...................................................................................... 144 California Tax Credit Allocation Committee (TCAC) ........................................................................144 #20..
- 954 -
City of Modesto Housing Element
Table of Contents
City of Modesto iii
Economic Indicators ............................................................................................................................145 Education Indicators............................................................................................................................146 Environmental Indicators ...................................................................................................................149 TCAC Composite Score.........................................................................................................................150 Access to Opportunities, Regional Comparisons.............................................................................154 Transportation......................................................................................................................................156 CalEnviroScreen 4.0 .............................................................................................................................159 Findings..................................................................................................................................................162 Disproportionate Housing Needs ............................................................................................. 162 Substandard Housing..........................................................................................................................162 Overcrowding........................................................................................................................................167 Homelessness........................................................................................................................................169 Displacement ........................................................................................................................................173 Findings..................................................................................................................................................175 Other Contributing Factors........................................................................................................ 176 Land Use History...................................................................................................................................176 Patterns of Annexation........................................................................................................................177 Fair Housing Issues, Contributing Factors, and Meaningful Action ...................................... 179 CONSTRAINTS ON HOUSING .................................................................................................. 200 Governmental Constraints......................................................................................................... 200 Locally Adopted Ordinances...............................................................................................................200 General Plan..........................................................................................................................................201 Zoning Ordinance.................................................................................................................................204 Density Bonus .......................................................................................................................................215 Modesto Landmark Preservation Ordinance ..................................................................................216 Providing For A Variety of Housing Types ................................................................................ 216 Accessory Dwelling Units .....................................................................................................................217 Senate Bill 9...........................................................................................................................................218 Emergency Shelters ..............................................................................................................................218 Low Barrier Navigation Centers.........................................................................................................220 Manufactured Homes..........................................................................................................................220 Supportive and Transitional Housing ...............................................................................................220 Farmworker and Employee Housing.................................................................................................221 Single-Room Occupancy Units ...........................................................................................................221 Development Review and Permitting Procedures .................................................................. 222 Growth Management Initiative Ordinance ......................................................................................222 Permit Processing and Entitlement Review Procedures.................................................................223 Planning, Building, and Development Impact Fees ........................................................................229 Transparency of Development Standards .......................................................................................234 #20..
- 955 -
City of Modesto Housing Element
Table of Contents
City of Modesto iv
SB 35 Approval Procedure..................................................................................................................234 Housing for Persons with Disabilities................................................................................................235 Building Code........................................................................................................................................238 Code Enforcement................................................................................................................................238 On- and Off-Site Improvement Requirements.................................................................................238 Nongovernmental Constraints.................................................................................................. 239 Requests to Develop Below the Anticipated Density.......................................................................239 Cost and Availability of Land..............................................................................................................239 Construction Costs ...............................................................................................................................240 Availability of Financing ......................................................................................................................241 Environmental and Infrastructure Constraints ...............................................................................241 SITES AND RESOURCES............................................................................................................. 249 Land Inventory............................................................................................................................. 249 Housing Allocation ...............................................................................................................................249 Realistic Capacity..................................................................................................................................250 Assumed Affordability..........................................................................................................................258 Environmental and Infrastructure Constraints ...............................................................................259 Entitled and Pending Projects ............................................................................................................262 Accessory Dwelling Units .....................................................................................................................268 Ability to Meet the RHNA .....................................................................................................................270 Opportunity Site Details ......................................................................................................................278 Financial Resources .................................................................................................................... 313 Administrative Resources....................................................................................................................313 Countywide Programs .........................................................................................................................313 Statewide Programs.............................................................................................................................314 California Emergency Solutions and Housing (CESH) Program....................................................315 Federal Programs.................................................................................................................................315 GOALS, POLICIES, AND PROGRAMS ....................................................................................... 318 Housing Goals and Policies........................................................................................................ 318 Housing Production .............................................................................................................................318 Housing to Meet the Needs of All Income Levels and Special Needs Groups.............................318 Removal of Governmental Constraints.............................................................................................319 Conserve, Preserve, and Improve the Housing Stock .....................................................................319 Affirmatively Further Fair Housing ....................................................................................................319 Community Engagement and Outreach...........................................................................................320 Quantified Objectives ................................................................................................................. 320 Housing Programs ...................................................................................................................... 321 APPENDIX A: SITES INVENTORY MAP .................................................................................. 357 #20..
- 956 -
City of Modesto Housing Element
Table of Contents
City of Modesto v
APPENDIX B: SITES INVENTORY LIST ................................................................................... 358 APPENDIX C: OUTREACH....................................................................................................... 406 #20..
- 957 -
City of Modesto Housing Element
Table of Contents
City of Modesto vi
List of Tables
Table 1: 5th Cycle Housing Production...............................................................................................4 Table 2: City Allocated Funding ..........................................................................................................6 Table 3: Review of 5th Cycle Programs.............................................................................................11 Table 4: City of Modesto RHNA, 2023–2031 ...................................................................................44 Table 5: Regional Population Change, 2010–2020.........................................................................45 Table 6: Regional Annual Average Population Growth, 2000–2020.............................................45 Table 7: Population Age Distribution, Modesto .............................................................................46 Table 8: Racial and Ethnic Composition, Modesto.........................................................................48 Table 9: Employment Trends, Modesto ..........................................................................................49 Table 10: Number of Households, 2000–2020...............................................................................52 Table 11: Regional Average Household Size...................................................................................52 Table 12: Household Size, Modesto, 2010–2020............................................................................54 Table 13: Regional Family Household Characteristics, 2010–2020..............................................54 Table 14: Household Size by Tenure, Modesto, 2020....................................................................55 Table 15: Median Household Income by Tenure...........................................................................55 Table 16: Income Range by Affordability Level Based on State Area Median Income, 2021....56 Table 17: Household Income Level by Tenure, 2019.....................................................................56 Table 18: Regional Housing Units, 2000–2020 ...............................................................................57 Table 19: Unit Size by Tenure, Modesto, 2020 ...............................................................................58 Table 20: Regional Housing Inventory by Unit Type......................................................................59 Table 21: Housing Building Type by Tenure, Modesto, 2021 .......................................................60 Table 22: Units Lacking Plumbing or Complete Kitchen Facilities, 2021 .....................................61 Table 23: Year Housing Built, Modesto ...........................................................................................62 Table 24: Housing Tenure by Date of Occupancy, Modesto.........................................................62 Table 25: Zillow Home Value Index, Neighboring Jurisdictions ....................................................64 Table 26: Regional Median Monthly Rent, 2010–2020 ..................................................................64 Table 27: Affordable and Fair Market Rent for Low-Income Households (2023).......................65 Table 28: Regional Occupancy Rates ...............................................................................................66 Table 29: Gross Rent as a Percentage of Household Income, 2021 ............................................67 Table 30: Overpayment by Income Level and Tenure, 2019 ........................................................67 Table 31: Overcrowding and Severe Overcrowding by Tenure....................................................69 Table 32: Units At Risk of Conversion..............................................................................................71 Table 33: Replacement Cost.............................................................................................................72 Table 35: Overview of Special Needs Groups, Modesto, 2020.....................................................76 Table 36: Inventory of Services for Special Needs Populations ...................................................76 Table 37: Modesto Farmworker Wages ..........................................................................................78 Table 38: Number of Farmworkers and Farms, Stanislaus County, 2017...................................79 Table 39: Large Households by Tenure, 2020 ................................................................................81 Table 40: Income Distribution, Large Households.........................................................................81 #20..
- 958 -
City of Modesto Housing Element
Table of Contents
City of Modesto vii
Table 41: Large Households by Housing Problems and Tenure, Modesto, 2019 ......................82 Table 42: Female-Headed Households by Tenure, Modesto, 2020.............................................84 Table 43: Female-Headed Households by Poverty Status, Modesto, 2020 ................................84 Table 44: Regional Homeless Population........................................................................................85 Table 45: Homeless Facilities in Modesto .......................................................................................87 Table 46: Population with Developmental Disabilities by Residence ..........................................90 Table 47: Valley Mountain Regional Center, Developmental Disabilities by Type, 2019...........91 Table 48: Regional Household by Age, 2020...................................................................................92 Table 49: Median Household Income for Elderly Households, 2020...........................................92 Table 50: Income Distribution, Elderly Households, 2019 ............................................................93 Table 51: Elderly People with Disabilities, 2020 .............................................................................93 Table 52: Elderly Households by Housing Problems and Tenure, 2019 .....................................94 Table 53: Overcrowding by Income Level .......................................................................................95 Table 54: Extremely Low-Income Households with Housing Problems, Modesto, 2019..........96 Table 55: Comparison of Fair Housing with Respect to Location.............................................. 109 Table 56: Fair Housing Complaints by Jurisdiction (2014-2019)................................................ 116 Table 57: Dispute Cases by Race in Modesto, 2015-2023.......................................................... 117 Table 58: Dispute Calls by Income Category in Modesto, 2015-2023....................................... 117 Table 59: Opportunity Indicators .................................................................................................. 156 Table 60: Overcrowding by Tenure (2019)................................................................................... 169 Table 61: Homeless Population by Jurisdiction (2020-2023)...................................................... 170 Table 62: Shelter Facilities in or Adjacent to Modesto................................................................ 171 Table 63: Camp2Home Services Provided................................................................................... 173 Table 64: Contributing Factors ...................................................................................................... 179 Table 65: AFFH Action Matrix......................................................................................................... 182 Table 66: General Plan Land Use Designations and Density Guidance ................................... 203 Table 67: Residential Zone Districts Development Standards................................................... 206 Table 68: Zones Allowing Residential Uses Development Standards (Commercial/Industrial Zones) .................................................................................................................................. 207 Table 69: Parking Requirements ................................................................................................... 209 Table 70: Downtown Master Plan Area Development Standards............................................. 211 Table 71: Comparison of Development Standards of Recent Projects .................................... 214 Table 72: Allowed Residential Uses Under the Zoning Code..................................................... 217 Table 73: Typical Permit and Entitlement Processing Times ..................................................... 224 Table 74: Comparison of Planning Fees....................................................................................... 230 Table 75: Infrastructure and Impact Fees .................................................................................... 231 Table 76: CFD Facility and Maintenance Fees.............................................................................. 231 Table 77: Vacant Lot Sales in Modesto (2022-2023) ................................................................... 240 Table 78: Disposition of Home Loans (2020)............................................................................... 241 Table 79: City of Modesto 2023-2031 RHNA................................................................................ 249 Table 80: 2023–2031 RHNA Buffer Calculation ........................................................................... 250 #20..
- 959 -
City of Modesto Housing Element
Table of Contents
City of Modesto viii
Table 81: Example Project Densities............................................................................................. 252 Table 82: Assumed Yields .............................................................................................................. 258 Table 83: Densities, Affordability, and Implementing Zones..................................................... 259 Table 84: Entitled and Pending Projects....................................................................................... 264 Table 85: ADU Construction Per Year........................................................................................... 268 Table 86: ADU Affordability Distribution Recommendations in California .............................. 269 Table 87: ADU Affordability Assumptions.................................................................................... 270 Table 88: RHNA Capacity and Buffer ............................................................................................ 270 Table 89: Affordable Housing Development Funding and Efforts ............................................ 274 Table 90: Vacant Site Capacity by Zone........................................................................................ 279 Table 91: Non-Vacant Site Capacity by Zone ............................................................................... 280 Table 92: Non- Vacant Development Trend Sites ....................................................................... 281 Table 93: Mixed-Use and PD Capacity.......................................................................................... 283 Table 94: MU-P and MU-H Zones, and Related P-D Amended Parcels – Assumed RHNA Units .............................................................................................................................................. 284 Table 95: Test Fit Lots and Rezone Lots ....................................................................................... 292 Table 96: Non-Vacant Site Favorable Redevelopment Characteristics..................................... 297 Table 97: Quantified Objectives .................................................................................................... 320 Table 98: 6th Cycle Housing Element Programs........................................................................... 322 List of Figures
Figure 1: Regional Population by Age Distribution, 2020..............................................................47 Figure 2: Regional Racial/Ethnic Composition, 2021......................................................................49 Figure 3: Regional Employment by Industry, 2021 ........................................................................50 Figure 4: Regional Employment by Occupation, 2021...................................................................51 Figure 5: Regional Household by Size, 2021 ...................................................................................53 Figure 6: Regional Home Prices Over Time, 2015-2022 ................................................................63 Figure 7: Regional Median Rental Prices, 2010-2020.....................................................................65 Figure 8: Female-Headed Households ............................................................................................83 Figure 9: Disability by Type ...............................................................................................................89 Figure 10: Disability by Number of Types by Age...........................................................................89 Figure 11: Census Tracts and RHNA Sites .................................................................................... 106 Figure 12: Fair Housing Complaints (2014-2019) ........................................................................ 116 Figure 13: Racial and Ethnic Majority (2021)................................................................................ 119 Figure 14: Percentage of the Population that is Non-White (2020)........................................... 121 Figure 15: Percent Non-White Comparison of RHNA Units ....................................................... 122 Figure 16: Racial/Ethnic Dissimilarity Index (2000-2020)............................................................ 123 Figure 17: Low to Moderate Income Population and RHNA Sites (2021)................................. 125 Figure 18: Low to Moderate Income Population Comparison of RHNA Units......................... 126 Figure 19: Households per Income Level, 2021 .......................................................................... 127 #20..
- 960 -
City of Modesto Housing Element
Table of Contents
City of Modesto ix
Figure 20: Median Household Income, 2021............................................................................... 129 Figure 21: Poverty Status (2010-2014 and 2015-2019)............................................................... 130 Figure 22: Housing Choice Voucher Recipients by Tract (2021) ................................................ 131 Figure 23: Percent of Children in Married Couple Households by Tract (2015-2019) ............ 133 Figure 24: Percent of Children in Female-Headed Households and RHNA Sites by Tract (2017- 2021) .................................................................................................................................... 135 Figure 25: Female Headed Households Comparison of RHNA Units ....................................... 136 Figure 26: Disability Characteristics by Age Group, Modesto (2019) ........................................ 137 Figure 27: Population of Persons with Disability by Tract (2010-2014 and 2017-2021) ......... 138 Figure 28: Population with a Disability Comparison of RHNA Units......................................... 139 Figure 29: R/ECAPs in the City and Vicinity................................................................................... 143 Figure 30: Presence of a R/ECAP Comparison of RHNA Units................................................... 144 Figure 31: TCAC Opportunity Areas - Economic Score by Tract (2023)..................................... 146 Figure 32: TCAC Opportunity Areas - Education by Tract (2021)............................................... 148 Figure 33: TCAC Opportunity Areas - Environmental by Tract (2021)....................................... 150 Figure 34: Site Inventory and TCAC Composite Score by Tract (2023) ..................................... 153 Figure 35: Distribution of RHNA Units by TCAC Category.......................................................... 154 Figure 36: Means of Transportation for Work - Modesto (2020)............................................... 157 Figure 37: StanRTA Service Area in Modesto (2023)................................................................... 158 Figure 38: High Quality Transit Areas, 1/2 mile (2022) ............................................................... 159 Figure 39: Sites Inventory and CalEnviroScreen 4.0 Percentile Score by Tract........................ 161 Figure 40: Distribution of RHNA Units by CalEnviroScreen 4.0 Percentile Score .................... 162 Figure 41: Housing Problems by Tenure and Race/Elderly/Housing Size ................................ 164 Figure 42: Cost Burden by Tenure and Race/Elderly/Housing Size........................................... 165 Figure 43: Overpayment by Owners (2010-2014 and 2017-2021) ............................................ 166 Figure 44: Overpayment by Renters (2010-2014 and 2017-2021) ............................................ 167 Figure 45: Sites Inventory and Overcrowded Households by Tract (2017-2021).................... 168 Figure 46: Estimated Displacement Risk (2022) .......................................................................... 175 Figure 47: General Plan Land Use Designation........................................................................... 201 Figure 48: Fire Hazard Severity Zones, Stanislaus County ......................................................... 243 Figure 49: Flood Hazard Map ........................................................................................................ 244 Figure 50: Special Flood Hazard Areas and RHNA Sites ............................................................. 260 Figure 51: State Responsibility Areas Fire Hazard Severity Zones, 2022.................................. 261 Figure 52: New Mixed-Use Zone Areas ........................................................................................ 282 Figure 53: Sample Large Lot Development.................................................................................. 293 Figure 54: Sample Narrow Lot Development.............................................................................. 294 Figure 55: Sample Shallow Lot Development.............................................................................. 295 #20..
- 961 -
City of Modesto Housing Element
Introduction
City of Modesto 1
Introduction
Purpose and Content
The City of Modesto’s 2023-2031 6th Cycle Housing Element has been prepared in compliance with the State of California Government Code Section 65302 and in conformance with the Housing Element Guidelines as established by the California Department of Housing and Community Development (HCD). This Housing Element sets forth the City’s overall housing objectives in the form of goals, policies, and programs.

Relationship to Other Elements and Plans
This Housing Element identifies goals, policies, and programs that guide housing policy for the City for the 2023 – 2031 planning period. The goals, policies, and programs are generally consistent with the direction of the City’s other General Plan elements. Modesto has initiated the update of its General Plan. The General Plan Update will occur concurrently with the separate update of the Housing Element. It is expected that the General Plan Update will conclude after the adoption and certification of the Housing Element. If necessary, the Land Use Element will be updated to be consistent with any changes required by the Housing Element. The City has also initiated amendments to the zoning ordinance to rezone two corridors to mixed-use and rezone two corridors to allow more residential development by the end of 2023. These rezonings will be accompanied by any required amendments to the General Plan Land Use Element. Once the 2023 amendments and rezonings are completed, no further amendments to the General Plan are anticipated to be necessary to ensure consistency with the Housing Element or zoning ordinance. Consistency will be reviewed as part of the annual General Plan implementation progress report as required under Government Code Section 65400. As amendments are made to the General Plan, the City will also review and revise the Housing Element for ongoing consistency.

Public Participation
As required by State law (Government Code Section 65588[c]), all economic segments of the community must be provided an opportunity to review and comment on the Housing Element.

The City of Modesto has developed a comprehensive and successful public engagement strategy that has provided valuable community feedback to date, the City will continue to gather information as the Housing Element pr ogresses. It will continue to provide extensive information to guide the Housing Element update process. Outreach for the Housing Element update began in May 2023, starting with a series of stakeholder focus groups. Community outreach involved engaging a diverse group of people in the planning process, including community members, stakeholders, service providers, educators, the Planning Commission, and City Council in the identification of Modesto’s Housing Element housing issues. #20..
- 962 -
City of Modesto Housing Element
Introduction
City of Modesto 2
The Housing Element Update also considered the information provided in the Modesto Housing Plan, for which the City conducted public outreach. Guided by community feedback throughout the process, the Housing Plan works to promote greater housing diversity and opportunities. The Housing Plan relied on community input and feedback to make zoning and policy recommendations for enabling a wide range of housing choices at all levels of affordability. The Housing Element draws on the feedback and results of the Housing Plan and implements some of the policies as identified in the Housing Plan.

The City held four online workshops to receive community input on the Housing Plan. At each public workshop, the project team presented work completed to date, got comprehensive feedback on design decisions, alternatives, and clearly outline next steps. Details on the workshops are as follows:
▪ Workshop 1: Introduction to the Housing Plan, October 14, 2021 ▪ Workshop 2: Analysis of Opportunity Sites, December 15, 2021 ▪ Workshop 3: Zoning and Policy Recommendations, March 17, 2022 ▪ Workshop 4: Draft Housing Plan, August 30, 2022.

In addition to the four workshops, the City distributed flyers in both English and Spanish and created a website for the Housing Plan.

The City made an effort to reach lower- and moderate-income individuals to participate in the Housing Element Update. As noted above, the City developed a multi-lingual outreach campaign, contacted a variety of local organizations including affordable housing developers, advocacy groups, and the fair housing service provider, local service providers, and community centered organizations. City will continue efforts to develop culturally competent outreach programs to connect residents to a variety of resources including affordable housing resources with the implementation of Program F - 1, F - 2 and F - 4.

The public participation program included:
▪ Website. An interactive housing element update website, launched on May 23, 2023 and accessed through the City’s webpage, which included a description of the project, workshop dates and materials, how to provide input, how to subscribe to the project email list, and a link to the Housing Element update survey. ▪ Surveys. A multilingual (English and Spanish) online community survey was created for the Housing Element Update. As of July 2023, the City has received 89 completed surveys and will continue to collect and analyze surveys through the Housing Element planning process.
▪ Focus Groups. Three focus groups were held. The first was held on May 23 at 12:00 PM and two were held on May 31 at 12:00 PM (due to high attendance) to gather input from community members and housing service providers. Several dates and times were offered to community members to ensure equity and flexibility for participants. #20..
- 963 -
City of Modesto Housing Element
Introduction
City of Modesto 3
▪ The organizations participated in the focus groups included:
o The Chamber of Commerce
o Korazón.io Konsultants
o Building Industry Association of Central California
o City Ministries Network
o Habitat for Humanity
o Tuolumne River Trust
o West Modesto Community Collaborative – People of Action Council o Stanislaus Regional Housing Authority
o El Modesto Commitè
o Community Housing & Shelter Services
o Project Sentinel
▪ Community Workshops. Two virtual community workshops were held on Thursday, July 6, 2023, and Wednesday, July 12, 2023 to gather input regarding issues the community faces and recommendations to alleviate the identified housing issues. Both workshops had simultaneous Spanish translation as well as the question and answer in portion in Spanish. The website was updated to include information about the community meetings and the City sent emails to notify individuals on the mailing list which included stakeholders, community service providers, and members of the public.

The links to the presentation video recording were posted on the Housing Element Update website.
▪ Meeting with Modesto Commitè. A meeting with the community organization Modesto Commitè was held on Monday, July 10, 2023, to gather input from organization members.
▪ Meeting with West Modesto Collaborative. A meeting with the community organization West Modesto Collaborative held on Wednesday, July 12, 2023, to gather input from organization members.
▪ Meeting with Emanuel Lutheran Church. A meeting with the community organization Emanuel Lutheran Church held on Wednesday, July 19, 2023, to gather input from organization members.

The City extensively advertised opportunities to participate and used various forms of media to reach the diverse population of Modesto. Efforts to notify the community about engagement opportunities include the following:
▪ Social media postings on the City of Modesto’s Facebook and Instagram pages as well as Nextdoor, see APPENDIX C:Outreach;
#20..
- 964 -
City of Modesto Housing Element
Introduction
City of Modesto 4
▪ Email notifications to the interested parties contact list; and ▪ The project page on the City’s website to stay informed as well as materials and updates regarding the Housing Element update.

Summary of Comments Received
During the initial outreach process (prior to the release of the public draft) the City heard comments ranging from concerns with homelessness, insufficient housing supply including affordable and supportive housing, the need for housing for a variety of groups including seniors, veterans, single mothers, and students, barriers for community outreach including access to materials languages other than English, and preference on locations for future housing. Many of the programs proposed as well as the RHNA sites inventory in the 2023-2031 Housing Element reflect the community input. In summary, the community engagement and input yielded the following themes and feedback:
▪ ADU Incentives: Participants expressed the difficulties and barriers to ADU development in Modesto. The City recently updated its ADU ordinance to comply with state laws that make it easier to build an ADU. Additionally, Program A - 10 establishes ADU incentives including preapproved/prereviewed plans, a fee exemption from Capital Facilities Fees, and educational promotion efforts. ▪ Education and Outreach: Participants expressed the challenges and barriers for community engagement and education as it related to affordable housing, available housing services and programs, housing policy, and other City events. Participants noted the need for improved access to bilingual materials and bilingual messaging to Modesto residents. Program F - 1, F - 2 and F - 4 implement outreach and education strategies to increase community awareness ADUs, housing resources, and available fair housing support. Program F - 3 focuses on providing bilingual materials to the City residents. The full housing element is also being translated into Spanish and will be posted along with the English version of the housing element. ▪ Prioritizing Affordable Housing for a Variety of Groups: Participants addressed the need for prioritizing development for veterans, seniors, students, and single mothers.

Programs D - 1, D - 5, and D - 8 are included to provide resources and facilitate and support affordable housing.
▪ Disparity of Investment Across Modesto Neighborhoods: Participants noted a disparity in housing and quality of infrastructure and amenities between West Modesto, the Airport District, and South Modesto and the rest of the City. Participants noted the importance of investing in these areas to provide access to necessary resources and adequate infrastructure concurrently with housing development.

Programs E - 1 and E - 2 are included to ensure place-based improvements are occurring in the areas listed as well as downtown Modesto. #20..
- 965 -
City of Modesto Housing Element
Introduction
City of Modesto 5
▪ Ease of Permitting Process: Participants highlighted the ease of going through the permitting process. They specifically noted the willingness of the City to be flexible, responsive, and assist applicants in navigating the permitting process.

Public Review Period
Pursuant to Assembly Bill 215 (AB 215), the City distributed the Draft 2023-2031 Housing Element for a 30 day public review period from June 16, 2023, through July 17, 2023. Public notification included social media postings and notifications through emails to the City’s stakeholder list as well as a public review digital copy on the City’s website. The City didn’t receive any comments during the public review period however, during the period from June 16 – July 26, 2023, the Housing Element website had over 460 page views.

The City did receive several comments and gathered significant feedback during the public workshops that were held during the public review period. During the live polling portion of the workshop the following housing issues and priorities were identified.

The top three housing issues in Modesto were:
▪ Difficulty paying rent, mortgage, down-payment etc;
▪ Insufficient housing supply; and
▪ Lack of suitable or needed housing types.

The top three programs identified to improve housing access were (4 programs choices had the same number of selections):
▪ Provide incentives to developers that restrict a portion of units to be affordable; ▪ Extend price control period on existing affordable units; ▪ Require affordable units in new developments;
▪ Allow more higher-density (multi-family) housing; and ▪ Simplify the process to approve projects.

Comments during the workshop ranged from a desire for improved multilingual communication in City documents and information sessions; as well as questions regarding what measures are used to accomplish fair housing, how will the City ensure enough homes will be built, and what incentives can the City implement to increase the availability of lowincome housing. #20..
- 966 -
City of Modesto Housing Element
Introduction
City of Modesto 1
#20..
- 967 -
Review of Past Accomplishments
#20..
- 968 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 3
Review of Past Accomplishments
California Government Code Section 65588[a] requires each jurisdiction to “review its housing element as frequently as appropriate to evaluate all of the following:
(1) The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal.
(2) The effectiveness of the housing element in attainment of the community’s housing goals and objectives.
(3) The progress of the city, county, or city and county in implementation of the housing element.
(4) The effectiveness of the housing element goals, policies, and related actions to meet the community’s needs, pursuant to paragraph (7) of subdivision (a) of Section 65583.”1 Per the California Department of Housing and Community Development (HCD), the three areas of requisite analysis are:
• Review the results of the previous housing element’s goals, objectives, and programs.

The results should be quantified where possible but may be qualitative where necessary.
• Compare what was projected or planned in the previous housing element to what was achieved. Determine where the previous housing element met, exceeded, or fell short of what was anticipated.
• Based on the above analysis, describe how the goals, objectives, policies, and programs in the updated housing element are being changed or adjusted to incorporate what has been learned from the results of the previous housing element.

Housing Production
The 5th Cycle Regional Housing Needs Allocation (RHNA) for the City of Modesto is shown in Table 1. The 5th Cycle allocation for the City consisted of 1,546 very low-income units, 991 lowincome units, 1,100 moderate-income units, and 2,724 above moderate-income, for a total of 6,361 units. As of December 2022, 2,064 units have been permitted during the 5th Cycle. There is a remaining RHNA need of 1,429 very low-income, 727 low-income, 552 moderate-income, and 1,589 above moderate-income units.
1http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=GOV&sectionNum=65588 .#:~:text=65588.,of%20the%20state%20housing%20goal
#20..
- 969 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 4
Table 1: 5th Cycle Housing Production
Very Low Low Moderate Above
Moderate Total
5 th Cycle RHNA
Allocation 1,546 991 1,100 2,724 6,361
Permitted 117 264 548 1,135 2,064
Remaining
Requirement 1,429 727 552 1,589 4,297
Source: City of Modesto, 2022 Annual Progress Report.

No Net Loss and Adequate Sites
Pursuant to Senate Bill (SB) 166, the City must always maintain adequate sites to accommodate the remaining RHNA requirement. The City saw development of 2,064 units over the 5th Cycle.

As documented in the 5th Cycle Housing Element, the City provided capacity for 8,616 units in the 5th Cycle, a surplus of 2,255 units beyond the identified RHNA. This included availability for 4,723 units on vacant and underutilized sites, as well as a projected 8 ADUs, 74 units in a funded/entitled project, and 297 in the Downtown Form Based Code. The rest of the units were accommodated through various specific plans including Fairview Specific Plan, Kiernan Business Park East, North Byer Specific Plan, Tivoli Specific Plan, Village One, and Woodglen Specific Plan.

At no point during the 5th Cycle did the City have a net loss of capacity. The City maintained a surplus of available sites for all income levels throughout the 2015 to 2023 planning cycle.

Effectiveness at Assisting Special Needs Populations
This section reviews the City’s efforts on assisting populations with special housing needs during the 5th Cycle. The City implemented multiple programs to assist special needs populations over the 5th Cycle.

Homeowner Repair Assistance Program
The Homeowner Repair Assistance Program provides financial and technical assistance to lowand moderate-income owner-occupied households to repair or eliminate critical health and safety hazard conditions in homes, and assist persons in making their homes more accessible.

Since 2015, a total of $5,147,700 was distributed in loans and grants through the City’s Homeowner Repair Assistance Program. A households with health and safety repairs, including but not limited to installation of energy-efficient windows, energy-efficient HVAC systems, reroofing, electrical repairs, and bathroom improvements and ramps compliant with the Americans with Disabilities Act (ADA).
#20..
- 970 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 5
Seniors
The City is facilitating the Stanislaus Regional Housing Authority’s property acquisition and development efforts at 412 Vine Street for the development of two apartment complex for a total of 34 units. Of these 34 units, the project called Helen White Cottages consists of 11 units dedicated to seniors. To continue these efforts the City has also facilitate the acquisition of a portion of a property located at 1500 Robertson Road in Modesto, which is currently owned by the Tuolumne River Regional Park Joint Powers Authority (composed of the Cities of Ceres and Modesto, and County of Stanislaus). The Housing Authority plans to build 92 affordable housing units and related improvements on approximately 4 acres of land. The project, by the name of Parque Rio, will provide much-needed housing for low-income families (70 units) and seniors (22 units).

Additionally, the Modesto Senior Citizens Center provides programs and capacities for those 60 years and older. This includes a free hot meal service every Monday through Thursday.

A recent Capital Improvement Program Project, Senior Playground 2014, renovated Ralston Tower Park into a senior-oriented public park with senior playground/fitness equipment, sports courts, and an outdoor plaza. Project design has been completed and construction is anticipated to be completed by summer 2023.

Persons with Disabilities
The City continues to partner with Stanislaus County Affordable Housing Corporation (STANCO) on affordable housing projects that serve mental health clients, which is a population at high risk of homelessness. The units they produce and manage are ADAaccessible and are tailored with the tenants’ medical team to meet these accommodations.

Persons Experiencing Homelessness
Through a community-wide visioning and planning process, the City identified priorities to develop and implement a comprehensive homelessness action plan that reduced encampments in public spaces, ensured the provision of supportive services, and identified strategies for permanent housing. The City has allocated significant funding for shelter/housing, programs and services, and community accountability, as outlined in the table below.
#20..
- 971 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 6
Table 2: City Allocated Funding
Type of Assistance City Funding
Shelter/Housing $22,556,853
Programs/Services $7,254,561
Community Accountability $5,284,048
Total $35,095,462
Source: City of Modesto
The allocation $3,300,000 in CARES funding, offered the City the ability to create Camp2Home – The Road to Self-Sufficiency for our Homeless Community program in 2020. Camp2Home aims at tackling homelessness on five key fronts: engagement, shelter, job training, employment, and permanent housing. With its continued partnership with the Stanislaus Community System of Care’s (CSOC), the following programs were carried out to address the five key fronts:

Outreach and Engagement:
▪ Blight Abatement Team (BAT): BAT assists the Community Health and Assistance Team (CHAT) team by cleaning up abandoned homeless camps and other blight throughout the city.
▪ Coordinated Entry: The Stanislaus CSOC continues to manage the Coordinated Entry System to coordinate the intake, assessment, and referral process within the CoC and efficiently expand the system’s ability to deliver the appropriate resources to individuals and families who are experiencing homelessness. ▪ Community Assessment, Response, and Engagement (CARE) Multidisciplinary personnel strategy: The CARE team facilitates the expedited identification, assessment, and linkage of homeless individuals to housing and supportive services within Stanislaus County subject to the provisions of the Welfare and Institutions Code. ▪ Community Health and Assistance Team (CHAT): CHAT, formerly known as the HEART team, engages with homeless individuals to build relationships, links them to mainstream services, and connects them with shelter and housing programs. The Camp2Home initiative allowed for the hiring of an additional 6 team members to actively support data collection, engagement, and referral support to shelter and supportive services. The program has made 5,480 total contacts with unsheltered individuals and provided over 4,700 services throughout the City. ▪ Center for Human Services – Youth Navigation Center – Street Outreach: The program provides street outreach to youth and young adults ages 13-24 years old who are experiencing homelessness. The program aims to engage youth and young adults who are unsheltered and offer support and services with the goal of shelter and permanent housing. With a total amount awarded around $208,000 in Emergency Service Grant #20..
- 972 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 7
(ESG-CV) and Emergency Solutions Grant (ESG) funds since 2018, the Street Outreach Program has been able to engage 370 individuals.
▪ Mobile Crisis Response Team (MCRT): This program is focused on community-based intervention designed to provide de-escalation and relief to individuals experiencing a behavioral health or substance use-related crisis wherever they are, including at home, work, school, or in the community. The program pairs two Mental Health Clinicians with police officers in a co-response model. It has leveraged $1.2 million in funding over 5 years and had been awarded $800,000 of American Rescue Plan Act funds (ARPA) and $850,000 ongoing Measure H funding.

Shelter and Transitional Housing:
▪ The Salvation Army operates two emergency shelters for individuals experiencing homelessness, the Access Center Emergency Shelter (ACES) and the Berberian Emergency Shelter. Additionally, ACES is co-located with the County’s Access Center offering mental health, employment, social security and referrals to partner programs.

Since 2018, the City has assisted in bringing over $1,200,000 to help fund the shelters, who assisted over 4,000 individuals during that time.
▪ Center for Human Services – Youth Navigation Center – Pathways Program: Pathways is a 15-bed transitional housing program ran by Center for Human Services that assists young adults ages 18-24 years old who are experiencing homelessness. Pathways provides a stable place to live while young adults work towards self-sufficiency. Since 2015, Pathways has supported 253 young adults.
▪ Haven Women’s Center -Emergency Shelter: Haven operates the only confidential domestic violence shelter in Stanislaus County and offers a variety of supportive services to individuals and families impacted by domestic violence, sexual assault, and human trafficking. Victims fleeing abuse, who are homeless or imminently homeless, are eligible for up to six weeks of shelter and services, including 24-hour crisis intervention and safety planning, peer counseling, legal advocacy, and support groups for adults and children affected by trauma. The shelter has received $178,000 in Emergency Service Grant (ESG-CV) and Emergency Solutions Grant (ESG) funds and has sheltered 603 individuals.
▪ Children’s Crisis Center: The Children’s Crisis Center of Stanislaus County is dedicated to serving the needs of high-risk children impacted by family crisis. The immediate goal is to reach children at-risk and intervene with protective childcare and shelter before they are harmed. The program has awarded around $245,000 since 2016 and has supported over 1,800 families and children.
▪ A number of supportive and emergency shelters are currently under construction or pending in Modesto. This includes the 14-bed Garden Gate Respite Center- Expansion that is currently under construction. Proposed projects include Bridge Housing, #20..
- 973 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 8
Recuperative Care at Gospel Mission and other locations, and Short Term- Post hospitalization locations to provide more permanent supportive housing.

Job Training and Permanent Employment:

Downtown Streets Team (DST) assists the City in progressing the job training and employment goals of Camp2Home. Downtown Streets Team provides individuals experiencing or at-risk of homelessness with case management services, including participation in regular sessions on key topics such as resume development, interview decorum, mental health counseling, budget and financial management, and other critical topics. Team members also gain job experiencing through volunteering in community beautification and clean-up projects. The goal is to help team members secure permanent employment after one year in the job training program.

The City and Downtown Streets Team actively work with public and private partners such as the County of Stanislaus, Modesto Irrigation District, Modesto Junior College, Opportunity Stanislaus, United Way, Chamber of Commerce, and others to secure employers that are willing to hire graduates of the job training program. Employers who partner with the City of Modesto to hire Camp2Home graduates will be considered a “fair chance employer.” In addition, after graduating from the program, participants will receive ongoing case management from the Downtown Streets Team for one year. This ongoing case management further assists individuals that have developed a pattern living in “survivor mode” and helps transition them to a thriving, forward-planning lifestyle. Each graduate of the job training initiative also receives a housing subsidy for one year following their graduation, pushing towards Camp2Home’s goal to permanent housing. Since its implementation, The City as assisted in allocating $2,400,000 to Downtown Streets Team to provide services to 161 individuals.

Permanent Supportive Housing:

The City has assisted in creating 181 permanent supportive housing units, listed below, for individuals experiencing homelessness, expanding on the goals of the Camp2Home program. ▪ The City, Stanislaus Regional Housing Authority, and Stanislaus County Behavioral Health and Recovery Services partnered in creating 39 permanent supportive housing units to assist individuals experiencing homelessness that utilized services provided by Stanislaus County Behavioral Health and Recovery Services. The project was supported by $800,000 in HOME funding and $550,000 in additional leveraged funds. ▪ The construction of Glendale Veteran’s Quarters, using $540,000 in HOME funds, created 4 permanent supportive units for veteran’s experiencing or at-risk of homelessness.
▪ In 2019, the City contributed $450,000 in Community Development Block Grant funding to fund the rehabilitation of 201 E. Coolidge to create 39 permanent supportive housing units.
#20..
- 974 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 9
▪ Finalized in 2020, Kansas House provided 103 units to individuals experiencing homelessness or at-risk of homelessness. The City assisted in providing $2,500,000 in Community Development Block Grant funding, while leveraging $8,565,869 in additional funding.
▪ The City assisted in provided about $450,000 in HOME funds and $150,000 Community Development Block Grant funds and leveraged an additional $1,104,864 to complete 522 E Granger, creating 5 additional permanent supportive units. ▪ The City leveraged $2,899,408 in funding while contributing $450,000 in Community Development Block Grant funds and leveraged $2,899,408 to acquire 835 California Ave for permanent supportive housing. The City partnered with Stanislaus Equity Partners and Stanislaus County Affordable Housing Corporation to acquire the newly constructed apartment, 112 James Street, adding 7 units of permanent affordable housing to our community. The City assisted with $200,000 of Permanent Local Housing Allocation funds in addition to $1,724,175 in Homekey 2.0 funding. ▪ Using $3,973,353 leveraged state Homekey 2.0 funding and $500,000 in Permanent Local Housing Allocation funds, the City assisted in the acquisition and rehabilitation of 1208 9
th Street, creating 14 units for young adults ages 18-24 experiencing homelessness.

In addition to the creation of permanent housing units, the City has also supported RapidRehousing and Homeless Prevention programs, assisting individuals experiencing homelessness find units in the community and retain permanent housing. The City has awarded over $480,000 to Community Housing and Shelter Services, Family Promise, and Turning Point to fund their Rapid-Rehousing and Homelessness Prevention programs, assisting 264 individuals. The City’s leveraged funding has assisted in providing 1,798 total beds/units and 32 total positions.

Accessibility Improvements
The City continues to evaluate accessibility through a team composed of multiple departments such as Traffic Engineering, Facilities Management, Transportation Engineering & Design, Human Resources, and Risk Management. Findings and recommendations for potential physical barriers are found in the web based DACTrak software program. DACTrak has photographs of barriers, GIS information, findings, recommendations, estimated costs and other information. The City provides ongoing notice of the identity of the City of Modesto ADA/504 Coordinator on its website and in frequently used publications or documents accessed by the general public and by recipients of programs, services, and activities.

Since 2017, a total of $4,041,000 in funds have been allocated by Council to address ADA accessibility improvements, including $1,704,000 in 2020. A total of 333 ADA ramps have been constructed or replaced across the City during this time period. #20..
- 975 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 10
Other accessibility improvements recently completed or highlighted in the 2023-2024 FY Capital Improvement Program include:2
ADA access to two residential neighborhoods through the Dry Creek Trail Pavement Rehabilitation & ADA Upgrade Phase II.

ADA improvements to residential neighborhoods through the Neighborhood ADA Improvement Program.

ADA ramp upgrades completed in 2022 through The Crows Landing Road Pavement Rehabilitation.

ADA ramp upgrades and bike lanes completed in 2022 through The Paradise Road Pavement Rehabilitation.

ADA sidewalk and curb ramps along Sisk Road as a part of the Pelandale Avenue Interchange, Phase II. Construction is anticipated to begin in the summer of 2023.

Evaluation of Previous Housing Element Programs
This section illustrates the accomplishments and statuses in implementing the housing programs identified for the 2015-2023 5th Cycle Housing Element. It also analyzes the continued appropriateness of each program for the 2023-2031 6th Cycle. Programs that have been successfully completed, are no longer pursued by the City, or that consist of routine staff functions are marked as “remove,” as these programs are no longer necessary for the 6th Cycle.

Previous programs that are continued with no or minor modifications are marked as “continue.” Finally, programs marked as “retain/modify” are programs that will be continued, but have updated goals and metrics, and may involve combining multiple existing programs into a single 6th Cycle program for ease of use and streamlining. 2 Fiscal Year 2023-2024 Capital Improvement Program:
https://www.modestogov.com/ArchiveCenter/ViewFile/Item/3805 #20..
- 976 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 11
Table 3: Review of 5th Cycle Programs
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
Program 1.1a:

Community
Housing Coalition
A community housing coalition, the Stanislaus
Housing and Support Services Collaborative,
was formed in 2000 to address housing issues
Countywide. This group holds monthly
meetings, with representation by more than 40
involved agencies, to discuss housing policy,
homelessness issues, and coordination within
the County.

Eight-Year Objectives and Time Frame:

Participate in monthly meetings of the
Stanislaus Housing and Support Services
Collaborative.
8 years
Attended ongoing meetings.

This program was created prior to the
development of the Community System of
Care in 2017. This program has been merged
and no longer exists in this form. This will
reorganize into the Community System of
Care (local CoC) and its various
subcommittees.

Retain – modify. Combine into
one CoC program.

D - 1
Program 1.1b:

Affordable Housing
Resources
The City, in coordination with Stanislaus County,
affordable housing developers, and others, will
continue to pursue affordable housing
resources at the national, State, and local levels.

With staffing constraints and the competitive
nature of most funding programs, the City will
focus on pursuing those determined to be most
cost-efficient, given the possibility of successful
funding applications.

Eight-Year Objectives and Time Frame:
• HUD requires the City of Modesto to
prepare a five-year plan, also known as the
Consolidated Plan, to discuss the manner in
which CDBG, HOME and ESG funds will be
8 years
Ongoing. City staff is actively evaluating
funding that can serve low-income
households including operations, rental
assistance, and housing development.
▪ Funding sources include: PLHA:
$6,274,519
▪ CDBG: $11,083,497
▪ HOME: $5,903,063
▪ HOME-ARP:$2,800,000
▪ Homekey: $5,697,510
▪ Affordable Housing and Sustainable
Communities:
▪ $14,238,248
Retain – modify to set quantified
objectives based on previous
success of 5th Cycle program.

D - 5
#20..
- 977 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 12
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
applied in the community during the
period. The City also prepares an annual
action plan and an annual performance
report on the expenditure of these funds.

Separate community development and
housing program objectives are included in
the Consolidated Plan.
• Establish a target of 50 percent of very lowincome rental assistance for extremely lowincome households during the 2015 – 2020 Consolidated Plan period.
• Monitoring funding cycles annually.

An estimated 330 households have been
assisted based on 294 units created.

1.1c Consolidated
Plan
The City is an entitlement jurisdiction eligible to
receive Community Planning and Development
(CPD) funds from HUD. Annually, the City
receives approximately $2.5 million in CDBG,
HOME, and ESG funds from HUD.

To receive these funds, the City must develop a
Consolidated Plan that outlines the City’s
strategy for addressing housing and community
development needs. The Consolidated Plan
must be consistent with the policies and
programs of the Housing Element. The
Consolidated Plan strategy must be updated at
least once every five years, and an annual Action
Plan is required to describe the City’s planned
use of HUD funds.

Five-Year Objectives and Time Frame:
• Prepare action pan annually
5 years
Ongoing. The City has prepared and adopted
the 2020-2025 Consolidated Plan. Annual
Action Plan and Consolidated Annual
Performance Reports are submitted annually.

Retain – combine with Program

1.1b above. All Consolidated Plan
actions to be in one program.
2025-2030 is the time frame for
the next consolidated plan. Time
frame to be every 5 years, or in
accordance with applicable
federal laws.

A - 6
#20..
- 978 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 13
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
• Prepare new Consolidated Plan for
2015-2020

1.1d Non-Profit
Housing
Development
Corporations
The City will support non-profit corporations in
their efforts to make housing more affordable
to lower and moderate income households.

Specifically, the City will work with Citydesignated Community Housing Development Corporations (CHDOs) to promote, assist,
and/or sponsor housing developments in
Modesto for lower income households. The City
will provide some financial support for
preserving, rehabilitating, restoring, converting,
and acquiring affordable units and provide
logistical support for projects by expediting any
necessary approvals.

Eight-Year Objectives and Time Frame:
• Ongoing financial and logistical support
on an as-needed bases
8 years
Ongoing. This program is a part of the efforts
of the Consolidated Plan. The City is actively
engaging with nonprofit developers to
develop and maintain affordable housing. See
responses to Programs 1.1b and 1.1c for
ongoing Consolidated Plan efforts.

Retain – combine with Programs

1.1b and 1.1c. All Consolidated
Plan actions to be in one
program. 2025-2030 is the time
frame for the next consolidated
plan.

A - 6

1.1e Land Banking /
Land Trust /
Surplus Land
The City will continue its land banking efforts for
the development of lower and moderate
income housing. The City, working with
nonprofit organizations such as CHDOs, will try
to purchase land suitable for affordable housing
in the near future. Land banking will ensure
preservation of areas in the City for future
affordable housing by removing these areas
from the private development market and
8 years
Ongoing. The City is currently developing a
Housing Trust fund with American Rescue
Plan Act funds as the seed funding.

Retain – split into two separate
programs, one for compliance
with the Surplus Lands Act and
one for ongoing Housing Trust
efforts.

A - 8
#20..
- 979 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 14
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
allowing the City to work with nonprofit
organizations to develop affordable projects
that serve the specific needs of the community,
such as the need for entry-level and step-up
housing. The City’s efforts at disposing of
surplus land have most recently resulted in the
opening of the Tower Park senior housing
project, on the site of a former park in
downtown.

The City will also explore other mechanisms
such as a land trust to facilitate the
development of affordable housing. Land trusts
are an increasingly popular mechanism used by
communities where high land costs make the
provision of affordable housing difficult.

Typically, a nonprofit organization forms a trust
that holds the title of the land on which
affordable housing is developed. When the
housing is developed, the individual
homebuyers purchase only the improvements
(the housing units) on the land, but do not hold
the title to the land, thereby making the
purchase prices affordable to lower- and
moderate-income households.

The City will continue to identify and monitor
surplus public lands suitable for residential
development. The surplus land could be
purchased by the city’s Nonprofit Housing
Corporation or other housing providers to
develop affordable housing.
#20..
- 980 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 15
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
Eight-Year Objectives and Time Frame:
• Ongoing land banking efforts
• Explore the use of land trust for affordable
housing within the 2015 – 2020
Consolidated Plan period
• Ongoing efforts to identify public surplus
land

1.1f Homebuyer
Assistance
The City offers a range of homebuyer assistance
programs to promote homeownership among
lower and moderate income households. Three
homebuyer assistance programs are available:
• Down Payment Assistance Program: The
City provides down payment assistance of
up to $10,000 to lower income households
(up to 80 percent of County Median Income)
using CDBG funds. Homebuyers must
provide minimum initial investment of 1.75
percent of the sales price. The loan accrues
at an annual fixed rate of 3 percent and is
secured by a promissory note and Deed of
Trust recorded after the primary mortgage.
• Family Self Sufficiency Program (FSS): The
Housing Authority currently has 175 active
members on the Family Self Sufficiency
Program. There are 220 FSS slots available
(180 of which are mandated slots), ten of
which we will target from the Shelter Plus
Care program, and twenty targeted for the
Family Unification Voucher program.

Eligible individuals and families who are on
the FSS Waiting List must indicate a
8 years
The City has discontinued its Homebuyer
Down Payment Assistance Program.

Down Payment Assistance Program:

Homebuyer Assistance Program assisted lowand moderate-income households with affordable safe and secure housing in
Modesto; the City provided financial
assistance to eligible individuals to assist in
the purchase of a residence. One approved
applicant was assisted through this program.

Due to the housing market economy at the
time, this program was not feasible to
maintain in operation.

In continuous efforts to promote
homeownership among lower- and moderateincome households, the development of Edward Estates was funded using HOME
funds. The City provided a $488,657 CHDO
loan to Great Valley Housing Development
Corporation (GVHDC) to construct two singlefamily homeownership units for low-income households. The use of the funds will allow
Remove – the program has been
discontinued. N/A
#20..
- 981 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 16
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
willingness to participate in the FSS
program. A participating family is required
to fulfill all obligations under the Contract of
Participation or the Housing Authority may
withhold or terminate supportive services
and the family forfeits any Escrow Account
Funds. The Contract indicates the
appropriate supportive services the
participating family will receive as well as
spelling out the responsibilities of the
participating family, such as requiring the
head of household to seek and maintain
suitable employment.

Eight-Year Objectives and Time Frame:
• Assist 8 lower and moderate income
households annually for the 2015 – 2020
Consolidated Plan period through the City’s
Homebuyer’s Assistance Program: 40
households; FSS, 220 slots, with an objective
of assisting 260 households over 5 years. At
the end of this period, a new Consolidated
Plan will be prepared and a new objective
adopted.
• Assist annually in the dissemination of
information on available homebuyer
assistance programs through brochures
available in the City’s central and field
offices, City website, referrals, attendance at
homebuyer fair, presentations to lenders
and realtors, ads in local newspapers (e.g.

GVHDC to construct the two affordable
housing units, sell the units at an affordable
rate to first time home buyers, and use the
proceeds to develop the rest of existing lots at
Village One-Edwards Estates. The 33 units are
going through the permitting process and will
be completed in the 6th Cycle.

The CHDO funds received would in essence
result in many more units being constructed
than just the initial two. Stanislaus Regional
Housing Authority acquired the land and went
into contract with the homeowners to lease
the land. This supports the access to housing
at affordable prices through the long-term
leasing of land under said housing.

Homebuyer Assistance Program is available
online.
#20..
- 982 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 17
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
Modesto Bee, Vida en el Valle) and in the
City monthly utility insert bulletin
• Annually review the down payment
assistance amount and loan term to assess
if adjustments are necessary to reflect local
housing market conditions and affordability
of housing relative to household incomes
(such as lower interest rate or higher down
payment assistance)

1.1g Rental
Assistance
The Section 8 Rental Assistance Program for
very low income households is administered by
the Stanislaus County Housing Authority. As of
December 31, 2015, 4,288 households receive
rental assistance under the Section 8 Rental
Assistance program annually. Under this
program, the participants typically pay no more
than 30 percent of their household income on
rent (affordable housing cost threshold). The
Housing Authority pays the rental property
owners the difference between the payment
standards established by the Authority and the
affordable housing cost threshold.

Eight-Year Objectives and Time Frame:
• Ongoing support for the Housing Authority
to petition for increased Section 8 allocation
• Promote the program to eligible
households through City website,
brochures, newsletters, and referrals
8 years
Ongoing. The City collaborates with the
Housing Authority for the development of
both rental and homebuyer housing
developments.

Retain. C - 3
#20..
- 983 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 18
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
• Establish a target of 50 percent of very low
income rental assistance for extremely low
income households during the 2015 – 2020
Consolidated Plan period.

1.1h Relocation
Assistance
When housing units are being rehabilitated
under the City’s Housing Repair Program, or
when households are displaced because of City
housing code enforcement efforts, the City
offers temporary relocation assistance to
displaced households.

Eight-Year Objectives and Time Frame:
• Assist annually in the dissemination of
information on available relocation
assistance programs through brochures
available in the City’s central and field
offices, City websites, referrals, attendance
at homebuyer fairs, presentations to
lenders and realtors, ads in local
newspapers (e.g. Modesto Bee, Vida en el
Valle) and in quarterly in the City’s monthly
utility insert bulletin
• By 2019, develop a relocation assistance
brochure to be used by Neighborhood
Preservation
8 years
The City has not been required to displace any
families during the 5th Cycle program. This
program as with others is subject to the
Uniform Relocation Act and should this event
occur the City has policies in place to ensure it
is handled in conjunction with these
regulations.

Retain – modify to be a
displacement prevention
program that complies with
federal guidelines.

E - 4
#20..
- 984 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 19
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number

1.1i Continuum of
Care for the
Homeless
In adherence with the Continuum of Care
model, the City continues to address the needs
of homeless persons and families by funding
local nonprofit agencies that provide direct
services to the homeless, including emergency
shelters, transitional housing facilities and
programs, and supportive services. Specifically,
the City has leased repossessed houses from
HUD for transitional housing services and has
provided funding to nonprofit organizations to
purchase houses that would be used for
transitional housing. Additionally, Modesto has
held a series of public meetings in recent
months to seek and develop solutions.

Eight-Year Objectives and Time Frame:
• Support of the Continuum of Care Plan and
participate in the Collaborative
• Annually allocate funding resources to
support agencies that serve the homeless
• Seek to increase the transitional housing
inventory by five units during the 2015 –
2020 Consolidated Plan period.
• Work with Stanislaus County during the
next ten (10) years to strengthen families
and prevent homelessness through a new
partnership program called Focus on
Prevention.
8 years
Ongoing. Multiple supportive housing projects
were completed in the 5th Cycle. This includes
103 permanent supportive units completed.

Projects include 8 units of permanent
supportive housing being built on California
Avenue, 7 units of permanent supportive
housing being built on James Street, and a
grant applied for 14 units of permanent
supportive housing on 9
th Street.

The Focus on Prevention website is live and
detailed.

Retain – set new quantified
objective.

Continue allocation of funds and
partnership.

D - 1;
D - 2
#20..
- 985 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 20
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number

1.2a Transitional
Housing Program
The City works with HUD and the Community
Housing Shelter Services in providing
transitional shelter (single family residences),
and counseling services to homeless families.

Transitional housing is provided primarily by
Center for Human Services, which operates the
Hutton House, Laura’s House, and Samaritan
House as well as a few others.

Eight-Year Objectives and Time Frame:
• Support during the 2015 – 2020
Consolidated Plan period.
• Provide four (4) additional family units
annually (20 over five years) and three (3)
additional units for individuals annually (15
over five years).
8 years
The City no longer pursues transitional
supportive units. City staff continues to
monitor existing deed-restricted programs.

Remove. N/A

1.2b Land Assembly
in Existing
Neighborhoods
In conjunction with Programs 1.1b, 1.1d, 4.1b,

4.1c, and 4.2a the City will encourage and
facilitate development on underdeveloped sites
by providing assistance with site identification
and entitlement processing, provide marketing
materials for residential opportunity sites and
provide technical assistance to interested
developers; including technical assistance to
acquire necessary funding, offering fee waivers
and deferrals for affordable housing projects,
and providing financial support when available,
in accordance with Programs 1.1b and 1.1d. As
funding becomes available, the City will also
organize special marketing events and
workshops geared towards the development
8 years
Ongoing. The City provides technical
assistance to facilitate development of
housing projects. This includes preapplication
meetings, review, and fee waivers and
deferrals for affordable housing projects.

Retain – include technical
assistance program for RHNA
site owners and for other
housing projects.

A - 13
#20..
- 986 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 21
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
community. The City will monitor and evaluate
development of underdeveloped parcels and
report on the success of strategies to encourage
residential development in the annual Housing
Element report, per Planning and Zoning Law
section 65400(a)(2)(B).

Eight-Year Objectives and Time Frame:
• Ongoing support

1.3a Foreclosure
Assistance
Stanislaus County has been at the forefront of
the national foreclosure crisis, consistently
ranking in the top five counties nationally by
rate of foreclosure. Stanislaus County is also
among the poorest counties in California,
making the foreclosure crisis even more difficult
for the local economy.

Eight-Year Objectives and Time Frame:
• Provide counseling to homeowners to avoid
defaulting on mortgage payments. Offer
alternative financing to address
delinquencies and refinance eligible
homeowners into more favorable fixed-rate
loans. Provide advocacy service to negotiate
with lenders for alternative financing.
• Purchase foreclosed properties and resell
as affordable housing to income qualified
buyers. Acquire and/or rehabilitate 14-15
units annually, for 73 units over five (5)
years
8 years
Project Sentinel provides fair housing services
for the City. From 2014 to 2019, Project
Sentinel opened 122 fair housing
discrimination cases for investigation and
provided fair housing education and
tenant/landlord mediation to over 5,500
individuals in the City.

The City does not offer any foreclosure
assistance.

Remove. N/A
#20..
- 987 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 22
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number

2.1a Manufactured
Housing
Pursuant to State law, the City will continue to
permit manufactured housing/mobile homes in
all residential districts, provided that they meet
the same standards as conventional housing
and are placed on a permanent foundation.

Eight-Year Objectives and Time Frame:

Continue to provide information on permitting
requirements for manufactured housing/mobile
homes with the objective of achieving 6 units
per year for a total of 30 units during the 2015 –
2020 Consolidated Plan period.
8 years
Ongoing. The City maintains a homeowner
repair assistance program for mobile homes
and continues to manage its Mobile Home
Rent Stabilization Ordinance. The repair
assistance program provides mobile
homeowners up to $20,000 forgivable grant
for low- and moderate-income households to
repair or eliminate critical health and safety
hazard conditions in homes, as well as making
homes more accessible for persons with a
disability.

Retain – set objective for number
of homes assisted for the mobile
home rehabilitation program.

C - 3;
C - 2

2.1b Handicapped
Accessible Housing
The City complies with the 1988 Fair Housing
Access Act through building inspections, as well
as the Disabled Access Assistance Program
(Program 3.1). Standards from the Fair Housing
Access Act have been incorporated into the
California Building Code and are enforced by the
building inspectors.

Eight-Year Objectives and Time Frame:
• Ongoing compliance with Fair Housing
Access Act through enforcement of the
California Building Code
• Ongoing assistance in promoting
awareness of accessibility requirements
through City website and brochures
• See also Program 3.1c.
8 years
Ongoing. The City has an ADA coordinator
that manages this program. The City is in the
process of reviewing draft protocols for an
application for reasonable accommodation
that would allow review at staff level instead
of requiring a variance through the Board of
Zoning Adjustment, reducing time and
expense for persons with ADA access issues. Retain – adopt process and policy for reasonable accommodation
applications.

B - 7
#20..
- 988 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 23
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number

2.1c Fair Housing
Services
The City actively furthers fair housing in the
community. Specifically, the City continues to
support the Human Relations Commission in
their activities to promote fair housing. The
Human Relations Commission is a sevenmember advisory group that meets bimonthly to promote good human relations in the
community and is staffed by the City Manager’s
Office. Furthermore, the City contracts with
Project Sentinel to provide fair housing services
and counseling for the community, working to
eliminate housing discrimination and remove
impediments to equal housing opportunities.

The City also coordinates seminars on tenant
rights and responsibilities and to address illegal
activities in rental housing.

Eight-Year Objectives and Time Frame:
• Ongoing provision of fair housing services
• Periodically report to the Human Relations
Commission on fair housing issues
• Assist annually in the dissemination of
information on fair housing rights and
violation remedies through brochures
available in the City’s central and field
offices, City websites, referrals, attendance
at homebuyer fairs, presentations to
lenders and realtors, ads in local
newspapers (e.g. Modesto Bee, Vida en el
Valle) and in occasionally in the City’s
monthly utility bulletin insert
8 years
Ongoing; report submitted annually.

Project Sentinel provides fair housing services
for the City. From 2014 to 2019, Project
Sentinel opened 122 fair housing
discrimination cases for investigation and
provided fair housing education and
tenant/landlord mediation to over 5,500
individuals in the City.

Retain – set quantified objective. E - 3
#20..
- 989 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 24
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number

2.2a Accessory /
Second Units
The Zoning Ordinance allows the development
of an accessory living unit in all residential
districts.

Eight-Year Objectives and Time Frame:
• Continue to facilitate the development of
accessory units and promote the use of the
City of Santa Cruz’s Accessory Dwelling Unit
Manual and Prototype Plan Sets with the
objective of achieving 1 unit per year for a
total of 8 units over eight years
8 years
In 2022, 31 ADUs were permitted. 50 ADUs
have been permitted since the beginning of
2019.

The City collaborated with Stanislaus County
to increase the accessibility to ADU
development through preapproved open
source plans. There are ongoing ADU
ordinance updates to comply with State
regulations.

Retain – set new quantified
objective and geographic
targeting for ADU promotion.

Promote the Stanislaus County
options.

A - 9,
A - 10,
F - 2

2.3a Small-Lot
Development
In order to further promote entry-level for-sale
housing, the city allows lot sizes for detached
houses to be less than 5,000 square feet in
Specific Plan areas and Planned Development
zones if the developer has followed the City’s
APA award-winning “Guidelines for Small-Lot
Single-Family Residential Developments”
(Guidelines) (May 2005).

Eight-Year Objectives and Time Frame:
• Facilitate the development of small-lot
single-family detached houses (less than R-1
minimum lot size of 5,000 square feet) by
providing guidance to applicants and staff
for the design of small lot development,
reducing review cycles, and reducing
uncertainty in the entitlement process.
• Continue to utilize the Guidelines for SmallLot Single-Family Residential Developments 8 years
Ongoing. Several Specific Plans permit
development on lots less than 5,000 square
feet, including Village One Specific Plan,
Woodglen Specific Plan, and Tivoli Specific
Plan. The City has approved significant
development on small lots in the past 8 years,
particularly 137 small lots in the Village One
Specific Plan and 214 small lots in the
Woodglen Specific Plan. These developments
have been by-right, not requiring additional
planning entitlements. Other small lot
developments have occurred by rezoning to
Planned Developments, including 67 small
lots in Vintage Square.

Retain. A - 14
#20..
- 990 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 25
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number

3.1a Housing
Rehabilitation and
Improvement
The City offers a range of housing rehabilitation
and improvement assistance to lower income
households (up to 80 percent of County MFI).

These include the Emergency Home Repair
Program, Disabled Access Program, Minor
Home Repair Grant Program, and Energy
Efficiency Improvement Grant.

Eight-Year Objectives and Time Frame:
• Assist 25 households annually (12-13
annually through MHRGP, 7-8 annually
through EHRP) through the housing
rehabilitation and improvement programs,
with an objective of assisting 60 households
during the 2015 – 2020 Consolidated Plan
period. A new Plan will be developed at the
end of that period.
• Continue to promote the availability of the
various housing rehabilitation and
improvement programs through
neighborhood and community
organizations, and by using the most
effective media, including brochures,
newsletter, City website, and referrals.
8 years
Ongoing.

In 2016-2017, the Minor Home Repair
Program operated the Energy Efficiency
Improvement Program and assisted 10
households in receiving energy efficiency
improvements in their home and the
Homeowner Repair Assistance Program
assisted 22 households. The repair program is
currently the only rehabilitation program in
place. The City keeps assessing new
approaches to assist lower-income
households with rehabilitation and
improvements.

A total of 64 households were assisted, which
met the goal.

Retain – set new quantified
objective.

C - 3

3.1b Energy
Conservation and
Efficiency
The City will continue to encourage
development and construction standards that
encourage energy conservation in residential
buildings. The California (Green) Building Code
is designed to maximize energy efficiency, and
has been applied to all new construction since
2013. The City provides no cost or low-cost
8 years
Ongoing. This program has been consolidated
with the City ‘s Homeowner Repair Assistance
Program. That program assisted 64
households throughout the planning period.

Retain – consolidated with
Program 3.1a above and set new
quantified objective based on 5th
Cycle achievements.

A - 17
#20..
- 991 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 26
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
weatherization to low-income households
through the Disabled Access Assistance
Program and Emergency Housing Repair
Program (Program 3.1). Energy efficiency
improvements are automatically included and
required in all housing rehabilitation projects. In
addition, the City provides literature and
information on programs for increasing energy
efficiency in residential structures.

Eight-Year Objectives and Time Frame:
• Ongoing distribution of program materials
through brochures and City website
• Assist 10 households annually through the
Disabled Access Assistance Program and
Emergency Housing Repair Program with
the objective of assisting 35 households
during the 2015 – 2020 Consolidated Plan
period.

3.1c Reasonable
Accommodation
The City will continue to refine its reasonable
accommodation process to provide individuals
with disabilities, reasonable accommodations in
rules, policies, practices and procedures that
may be necessary to ensure equal access to
housing. The purpose of this effort is to provide
a clear and consistent process for individuals
with disabilities to make requests for reasonable
accommodation in order to obtain relief from
the various land use, zoning, building laws,
rules, policies, practices and/or procedures of
the City.
8 years
The City initiated a self-evaluation and
updated the ADA Transition Plan in 2017. A
2021 Summary Update addresses progress
and ongoing activities, identifies areas of
responsibility, and outlines future efforts to
address barriers to access.

Since 2017, a total of $4,041,000 in funds have
been allocated by Council to address ADA
accessibility improvements with the most
recent year at $1,704,000. A total of 333 ADAcompliant ramps were constructed or Retain. B - 7
#20..
- 992 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 27
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
Eight-Year Objectives and Time Frame:
• Ongoing enforcement of the California
Building Code and operation of the
Disabled Access Appeals Board
• By 2018, develop an informational handout
for Modesto’s Reasonable Accommodation
process.
replaced across the City during the same time
period.

A brochure was completed and is available in
the public lobby of City Hall.

The City is also in the process of reviewing
draft protocols for an application for
reasonable accommodation that would allow
review at staff level instead of requiring a
variance through the Board of Zoning
Adjustment, reducing time and expense for
citizens with ADA access issues. This process
would include an application through the
Planning Division, who would consult with all
appropriate City Departments and Divisions,
including the City’s ADA Coordinator in all
cases.

3.1d Coordinate w/
County to address
“islands”
Within Modesto’s Sphere of Influence, there are
many areas that have been developed with
residences, often at urban densities, under the
governance of Stanislaus County. These areas
are commonly referred to as “County islands.”
Policies relating to the annexation of County
islands are Policy II.C.1 on page II-5 of the 2008
Urban Area General Plan; Policy VIII.D on pages
VIII-2 and VIII-3 in the 2008 Urban Area General
Plan; and Policy VIII.V on pages VIII-17 and VIII18 in the 2008 Urban Area General Plan.

Eight-Year Objectives and Time Frame:
• The City will work with Stanislaus County to
address any property tax issues as money
8 years
Ongoing.

After the positive sewer advisory vote for the
county islands in November 2015, additional
updates to the Urban Growth Review are no
longer needed.

Retain – modify to include placebased improvements in the County islands.

E - 2
#20..
- 993 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 28
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
becomes available to annex “island”
properties to Modesto.
• Update Urban Growth Review as needed,
including the identification of infrastructure
upgrades and develop cost estimates for
upgrading infrastructure in compliance with
applicable municipal code provisions and
regulations.
• Modesto held a positive sewer advisory
(“Measure M”) vote in November 2015 for
developed county islands

3.2a Preservation of
Units at Risk
The City will strive to preserve all units in the atrisk property category. The City will annually identify, meet with, and pursue funding with
nonprofit organizations as potential
purchasers/managers of at-risk housing units.

As part of coordination with nonprofit partners,
the City will annually explore funding sources
available to purchase affordability covenants on
at-risk projects, transfer ownership of at-risk
projects to public or nonprofit agencies,
purchase existing buildings to replace at-risk
units, or construct replacement units.

Eight-Year Objectives and Time Frame:
• Current administration a Housing
Rehabilitation Program to assist
homeowners rehabilitating housing units
that preserve affordability that is at risk of
being abandoned or converted to market
rate housing. Based on projected funding
8 years
Ongoing.

The City assisted with 3 LITC preservation
projects as Tax Equity and Fiscal Responsibility
Act (TEFFRA) hearings. The projects include
Ralston Tower, Maple Manor, and Cameron
Villa apartments.

Retain – this program will be
modified to set updated concrete
goals and timelines.

C - 1
#20..
- 994 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 29
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
sources and levels, it is anticipated that
approximately 70 owner-occupied units and
375 rental units can be assisted.
• Monitor owners of at-risk projects on an
ongoing basis, at least annually, in
coordination with other public and private
entities to determine their interest in
selling, prepaying, terminating, or
continuing participation in a subsidy
program.
• Maintain and annually update the inventory
of “at-risk” projects through the use of
existing databases (e.g. HUD, State HCD,
and California Tax Credit Allocation
Committee)
• Take necessary steps to ensure that a
project remains in or is transferred to an
organization capable of maintaining
affordability restrictions for the life of the
project, including proactively ensuring
notices to qualified entities, coordinating an
action plan with qualified entities upon
notice, and assisting with financial
resources or supporting funding
applications.
• Annually monitor local investment in
projects that have been acquired by non- or
for-profit entities to ensure that properties
are well managed and maintained and are
being operated in accordance with the City’s
property rehabilitation standards.
#20..
- 995 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 30
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
• Work with owners, tenants, and nonprofit
organizations to assist in the nonprofit
acquisition of at-risk projects to ensure
long-term affordability of the development.

Annually contact project owners, gauge
interest, and identify non-profit partners
and pursue funding and preservation
strategy on a project basis.
• Annually meet with stakeholders and
housing interests to participate and
support, through meetings and technical
assistance with local legislators in federal,
State, or local initiatives that address
affordable housing preservation (e.g.
support State or national legislation that
addresses at-risk projects, support full
funding of programs that provide resources
for preservation activities)
• Annually identify funding sources for at-risk
preservation and acquisition rehabilitation
and pursue these funding sources at the
federal , State, or local levels to preserve atrisk units on a project-by-project basis. • The City should actively pursue affordable
housing opportunities and maintain a list of
interested and qualified affordable housing
developers. The City will update this list
annually.
• Tenant Education: The California Legislature
extended the required notification period,
requiring property owners give a 12-month
#20..
- 996 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 31
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
notice of their intent to opt out of lowincome use restrictions. The City will work with tenants of at-risk units and provide
them with education regarding tenant
rights and conversion procedures.

4.1a Zoning Code
Amendments
As part of this Housing Element update, the City
has identified Zoning Code revisions
necessitated by recent changes to State law, and
to further facilitate the development of
affordable and special needs housing.

Eight-Year Objectives and Time Frame:
• By 2019, consider amendment to create
incentives for land assembly by allowing
greater densities on progressively larger
lots.
• Annually review zoning ordinance,
subdivision regulations, and development
policies and procedures for consistency
with State and Federal law. Amend zoning
code as needed.
• Prior to 2018, Modesto will identify at least
one (1) zone district in which additional
emergency shelters will be permitted by
right (administratively). Zones Modesto is
considering are C-M, M-1, and M-2, which
are the zones in which one (1) additional
shelter is currently allowed by right. At such
time that City staff can definitively
document a sufficient number of beds – by
type / category – within various shelter
8 years
Ongoing. The reasonable accommodation
procedure is completed through the Building
Division. The City has not implemented any of
the considerations regarding incentivizing
land assembly by allowing greater densities
on progressively larger lots.

The City continues to update its Code, policies,
and procedures to align with State Law.

Recent examples of this include ADUs, Density
Bonus, Permit Streamlining, and transitional
housing. The City is preparing or researching
additional Code and policy updates regarding
SB-9, Emergency Shelters, Low Barrier
Navigation Centers, Reasonable and
Accommodations under ADA law.

The City did identify C-M, M-1, and M-2 zones
to allow an additional emergency shelter by
right by 2018. The City is also in the process of
updating the Emergency Shelter and Low
Barrier Navigation Center portions of its Code
to comply with more recent changes in State
Law.

Staff is currently reviewing a draft reasonable
accommodation procedure with the City’s
ADA Coordinator using best practices from
Remove; Zoning amendments to
be completed prior to adoption
of 6th Cycle housing element.

N/A
#20..
- 997 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 32
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
facilities to accommodate the need as
determined by the most recent point-intime survey, all subsequent emergency shelters will be subject to a Conditional Use
Permit process.
model ordinances and other cities’ existing
procedures.

A code amendment for Emergency Shelters is
scheduled to go to Planning Commission on
June 19, 2023.

4.1b Large Sites for
Lower-Income
Housing
To assist the development of housing for lower
income households on suitable sites, the City
will facilitate land divisions, lot line adjustments,
and specific plans resulting in parcel sizes that
facilitate multi-family developments affordable
to lower income households in light of state,
federal and local financing programs. The City
will work with property owners and non-profit
developers to target and market the availability
of sites with the best potential for development.

In addition, the City will offer the following
incentives for the development of affordable
housing, including but not limited to:
streamlining and expediting the approval
process for land division associated with
affordable housing production; ministerial
review of lot line adjustments; and, providing
technical assistance to secure funding.

Eight-Year Objectives and Time Frame:
• Annually review zoning ordinance,
subdivision regulations, and development
policies and procedures for consistency
8 years
Ongoing, as requested.

Although the City does not currently have a
formal policy to expedite affordable housing
projects, the City’s practice has been to
expedite the processing of affordable housing
projects, particularly as they relate to tight
deadlines related to State and Federal funding
requirements. Vine Street, a 23-unit veterans
affordable housing project, and Archway
Commons Phase II, a 74-unit 100% affordable
housing development, both with reduced
parking requirements, have received this
assistance in the past 8 years.

The City encourages and assists affordable
housing developers, provides technical
assistance, and encourages lower income
housing projects throughout the City. The City
also works with affordable housing
developers to expedite review in order to
meet grant deadlines. Recent projects that the
City has supported include Vine Street and
Archway Commons.

Remove; The City will provide
other incentives for lowerincome housing on lots of all sizes.

N/A
#20..
- 998 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 33
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
with State and Federal law. Perform zoning
code amendments as needed.

4.1c Lot
Consolidation
To assist the development of housing for lower
income households on smaller sites, the City will
play an active role in facilitating lot
consolidation. For example, the City will work
with non-profit developers and owners of small
sites to identify and consolidate parcels to
facilitate the development of housing affordable
to lower-income households. The lot
consolidation procedure will also be posted on
the City’s website and discussed with developers
during the preliminary stages of project concept
review. Incentives offered for lot consolidation
could include allowing higher densities on the
larger parcels once consolidated, flexible
development guidelines/standards, and
expedited processing. Applications for lot
consolidation will be processed ministerially.

Eight-Year Objectives and Time Frame:
• Assist affordable housing developers to
consolidate lots, where necessary, to
develop affordable housing.
• Prior to 2018, amend the Zoning Code to
establish a Housing Incentive Program,
similar to the County of Sacramento’s,
which provides a mechanism to facilitate
expedited subdivision map processing,
density bonus, and relaxed development
8 years Ongoing, as requested. The City has not
developed a formal program for this process. Remove. N/A #20..
- 999 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 34
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
guidelines and/or relief from specific
standards for affordable housing projects –
particularly those that provide housing for
any of the special needs groups referenced
within this Housing Element.

4.2a Residential
Sites Inventory
As part of this Housing Element update, the City
has reviewed in detail its residential land
inventory for vacant and underutilized sites
available for housing development. To meet the
State mandate of accommodating the RHNA
and to maintain consistency with the City’s goal
of focusing growth within the Baseline
Development Area and the Planned Urbanizing
Area, the City is committed to maintaining this
sites inventory. Modesto will ensure that
adequate sites are available as shown on Table
4-11. All affordable housing numbers used in
this Housing Element are approximate, based
upon current data. Update residential sites
inventory annually
Eight-Year Objectives and Time Frame:
• Update residential sites inventory annually
8 years
An entire citywide inventory for use with GIS is
almost 100% complete (residential inventory
is complete). Will be updated automatically
when new building permit software is
installed.

Retain.

A - 1

5.1a Reduction of
Parking Standards
Modesto allows a reduction in parking
standards for senior housing developments and
has established lower parking ratios for housing
in the downtown form based code area. The
objective is to match parking standards with
need to reduce costs. As the City begins to
promote mixed-use developments along the
8 years
The City uses mixed-use and shared parking
standards, as well as reduced parking for
senior housing and low-income projects.

Projects that have taken advantage of
reduced parking requirements include:
• El Rio – senior housing in Kiernan
Business Park (also memory care)
Retain.

B - 6
#20..
- 1000 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 35
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
commercial corridors, flexible parking standards
may be adopted for mixed use projects and
projects that involve small units. Elements of an
individual project, the area in which it is located,
and the transportation system must be
evaluated when considering reducing parking
requirements. Typically, developments within a
five-minute walk of a transit stop are considered
for reduced parking.

Eight-Year Objectives and Time Frame:
• Continue to offer reduced parking
requirements for senior housing
developments and for development in the
downtown form based code area.
• Review parking requirements as needed for
mixed-use projects to offer flexibility in
meeting parking needs (such as shared
parking with commercial uses, off-site
parking, reduced parking due to potential
reduced trips)
• Magnolia Garden – 2600 Block of W.

Rumble Rd.
• Mable Apartments
• Tower Park
• Archway Commons Phase II
• Vine Street Developments

5.2a Multi-Family
Developer Incentive
Program
The Stanislaus County Housing Authority and
nonprofit sponsors of housing for very-lowincome households are exempt from the City’s Capital Facilities Fees (developer fees). For multifamily projects with density bonuses, 20 percent of the project units must serve low income
households or 10 percent of the units must
serve very low income households. For these
projects, developer construction fees are levied
by deferring payment of Capital Facility Fees
8 years Ongoing, as needed. There have been 220
multifamily exemptions since 2015.

Retain – modify quantified
objective. D - 7
#20..
- 1001 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 36
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
with 20 percent required down and five years to
pay.

Eight-Year Objectives and Time Frame:

Assist multi-family density bonus project
developers with fee deferrals of Capital Facilities
Fees, for projects serving very low and lowincome households with an objective of assisting 30 units per year or 150 units over the
2015-2020 Consolidated Plan period.

5.3a Streamlined
Application Review,
Permit Process
The City complies with the State-mandated
Permit Streamlining Act, which ensures timely
processing of planning development
applications. The City building permit
inspections and review have a minimal
turnaround time, and no processing procedures
result in extensive delays for affordable
housing.

Eight-Year Objectives and Time Frame:

Continue the City’s periodic reviews of the
application review and permit processing
procedures and time frame to ensure continued
compliance with the Permit Streamlining Act
8 years
Ongoing. The City has taken numerous steps
in the last 8 years to streamline the
Development Review Process. With the help
of eTrakit software, the City has increased the
efficiency of the review process for permits
and entitlements, complying with the Statemandated 30-day turnaround time for notifying applicants for completion, and
standardizing and streamlining the
timeframes for different levels of review. The
City has also amended the Municipal Code
requirements to reduce barriers to permit
acquisition and align with State Law including
ADUs, Density Bonus, and transitional
housing.

Retain – modify. B - 4

5.3b Administrative
Coordination
Currently, several departments in the City are
responsible to the delivery of various housing
programs. For example, the CDBG- and HOMEfunded housing programs are administrated by the Parks, Recreation, and Neighborhoods
Department. Uses of the redevelopment
8 years This program has been consolidated and is no
longer valid as of 2015. Remove. N/A
#20..
- 1002 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 37
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
housing set-aside funds are overseen by the
Community and Economic Development
Department. The coordination of program
delivery and uses of funds among departments
requires increased efforts and sometimes
results in duplicated efforts. Particularly, if a
Housing Trust Fund is created to consolidate
various funding sources (Program 1.3), the City
may consider assigning the responsibility of
overseeing the Trust Fund to one department.

Eight-Year Objectives and Time Frame:
• Continue internal coordination to facilitate
the construction of affordable housing on
an as-needed basis.

5.3c Annual Report
of General Plan
Charter cities are not required to conduct
annual reviews of their general plans. If
undertaken, review should include the progress
of the Housing Element in meeting its share of
the regional housing needs. The City makes any
necessary adjustments to the General Plan
elements to ensure consistency among the
elements, to promote effective policy and
program implementation, and to reflect
changed conditions and regulations. If
undertaken, the City may evaluate its progress
in meeting its share of the Regional Housing
Needs Allocation (RHNA). If components of the
RHNA are not met, the City will evaluate the
reasons for this occurrence and respond in
8 years Ongoing. Maintained and filed every year. Remove – this is a standard process.

N/A
#20..
- 1003 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 38
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
conformance with implementation programs as
set forth in the Housing Element
Eight-Year Objectives and Time Frame:
• Conduct annual reviews of the General Plan
implementation

6.1a Urban Growth
Policy Review
Update
The Modesto General Plan calls for the City to
maintain a five-year supply land served with
urban infrastructure and available for
development (Chapter II, Section C, General Plan
Maintenance, page II-5). In addition, the General
Plan provides that new development should
occur next to existing development. This avoids
situations in which the City might become
responsible for extending urban services (for
example, sewer lines) through open areas to
new development.

Eight-Year Objectives and Time Frame:
• Continue to prepare the Urban Growth
Review report every two (2) years to direct
and manage growth, ensuring adequate
urban services for new developments
8 years
No Urban Growth Review reports were
conducted in 2021 due to the low level of
development and large amount of
developable land within City limits.

Remove – not a relevant Housing
Element program.

N/A

6.2a Encourage
Infill Development
In an effort to maximize efficiency of existing
infrastructure, the City will establish a program
to provide regulatory, financial, or other
incentives to promote infill development to
meet projected housing needs.

The City will solicit input from local developers
and interested parties to determine the greatest
8 years
Ongoing. The City prepared a Housing Plan to
identify potential additional sites for housing
and to recommend policies and regulations
that can be revised to facilitate housing.

Remove. N/A
#20..
- 1004 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 39
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
obstacles to infill development, and develop
strategies accordingly to address these
obstacles. The creation of marketing materials
by the City to promote infill development may
be a part of this program. Marketing materials
may include development fee waivers for the
development of affordable housing, the
availability of CDBG grants to assist with public
infrastructure improvements to affordable
housing projects, the availability of vacant
residential sites inventory report, listing site
locations, acreages, ownership, zoning and
entitlement requirements.

Eight-Year Objectives and Time Frame:
• Continued encouragement
• By 2019, solicit input from the development
community to determine the greatest
obstacles to infill development.

The City supported the following infill
development projects during the 5th Cycle:
• Tower Park
• Kansas House
• Archway Commons Phase II
• Vine Street Developments

7.1a Coordination
of Housing and
Economic
Development
Efforts
Despite the loss of thousands of Modesto
residents immediately before and during the
mortgage crisis, Modesto continues to have
fewer jobs than needed to achieve a balance
between jobs and housing and thus reduce
commuting distances. A jobs-housing imbalance
exists, jeopardizing the quality of life offered by
Modesto, creating impacts on the City’s
infrastructure systems, air quality, and
economic well-being of the community. To
attempt balancing housing growth and
8 years
Ongoing. This is a part of efforts taken for the
Consolidated Plan. The 2020-2025
Consolidated Plan was adopted.

Remove. N/A
#20..
- 1005 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 40
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
economic development, the City offers these
mechanisms:
• Urban Growth Policy Review Update
(Program 6.1): to ensure a balanced
inventory of land is available for the
upcoming five years;
• Regional and inter-agency agreements for
provision of both potable and non-potable
water supplies;
• Significant transportation system
improvements, including reconstructed
interchanges along SR99 and widening of
SR219; and,
• Revenue Bonds to provide for the
construction and rehabilitation of major
infrastructure and facilities necessary to
support economic development efforts.
• A Community Benefit District for downtown
revitalization (established 2015)
• Ongoing business attraction, retention, and
expansion programs
• Various economic incentives for new and
existing businesses
Partnership with community and public
organizations in workforce development
programs, including the Stanislaus Business
Alliance and Modesto Junior College to train
young people to perform jobs that are needed
by local businesses.
#20..
- 1006 -
City of Modesto Housing Element
Review of Past Accomplishments
City of Modesto 41
5 th Cycle Program
Name and
Number
Action/Target
Time
Frame
in HE
Status of Implementation Continued Appropriateness
6 th Cycle
Program
Number
Eight-Year Objectives and Time Frame:
• Ongoing development efforts
• Comprehensive General Plan Update to
include an Economic Development Element
to begin by 2019.

7.1b Affordable
Workforce Housing
Through economic development efforts
(Program 7.1), Modesto will work with
businesses to create higher paying jobs. The City
will also coordinate with the business
community to address the housing needs of
workers. Modesto will also revise the Municipal
Code to comply with the Employee Housing Act,
found in California Health and Safety Code
Section 17000 – 17062.

Eight-Year Objectives and Time Frame:
• Ongoing efforts to develop affordable
housing consistent with this element of the
Urban Area General Plan
• Update Municipal Code to comply with the
Employee Housing Act by 2020.
8 years
Ongoing. The City is working with several
nonprofit developers and the local housing
authority to develop workforce housing,
including 1612 Sisk, which has an application
for development of 150 moderate income
units.

Remove. N/A
#20..
- 1007 -

HOUSING NEEDS ANALYSIS
City of
MODESTO Housing Element 2023-2031
#20..
- 1008 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 43
Housing Needs Assessment
The housing needs assessment analyzes the varied needs of all segments of the community.

The assessment evaluates characteristics that inform housing need including population trends, demographics, employment trends, household characteristics, housing stock characteristics, housing inventory and market conditions, and preservation of at-risk units. The assessment also analyzes housing needs of various special needs groups, including elderly persons, large households, female-headed households, persons with disabilities (including developmental disabilities), homeless persons, farmworkers, and extremely low-income households. These components are presented in the context of the City of Modesto, Stanislaus County, and other regional or neighboring areas as appropriate. The housing needs assessment guides the identification of appropriate goals, policies, and programs for the City to implement during the 2023 – 2031 Housing Element cycle.

The housing needs assessment uses multiple data sources for analysis. Primary data sources include the 2020/2021 American Community Survey (ACS), the 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) published by the US Department of Housing and Urban Development (HUD), and the 2020/2021 US Census. The CHAS provides information related to households with housing problems, including overpayment, overcrowding, and/or housing without complete kitchen facilities and plumbing systems. CHAS data is based on the 2015– 2019 ACS data files but differs from the standard files by including a variety of housing need variables shown by HUD-defined income limits and HUD-specified household types. CHAS data uses the HUD area median family income (HAMFI), which does not differ from the area median income (AMI) used by the California Department of Housing and Community Development (HCD) except that the categories vary slightly from AMI income categories (shown below). Both HAMFI and AMI use the same median income from the metropolitan area, which for Modesto is the Sacramento-Stockton-Modesto metropolitan district. Tables that use HAMFI instead of AMI are noted.3
HCD uses five income categories to evaluate housing need based on the AMI for each metropolitan statistical area; they are used for both funding and planning purposes. The categories are as follows:
▪ Extremely low-income households, between 0% and 30% of the AMI ▪ Very low-income households, between 30% and 50% of the AMI ▪ Low-income households, between 50% and 80% of the AMI ▪ Moderate-income households, between 80% and 120% of the AMI ▪ Above moderate-income households, above 120% of the AMI 3 Note that data from the different sources and different years may have varying estimates for totals such as population or number of households.
#20..
- 1009 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 44
Extremely low-, very low-, and low-income households may be grouped together for planning purposes and referred to as “lower-income households.

Projected Housing Needs
As required by California Government Code Section 65583, each jurisdiction must have land zoned to accommodate its fair share of the regional housing need. Each jurisdiction’s share of needs is known as the Regional Housing Needs Allocation (RHNA). HCD determines the needs for each region of the state. The Stanislaus Council of Governments (StanCOG) is the regional planning agency for the nine cities and unincorporated county and responsible for assigning each jurisdiction its share of the RHNA. The RHNA is broken down into the five income levels:
extremely low, very low, low, moderate, and above moderate.

As determined by HCD, the RHNA for Stanislaus County over the 2023 – 2031 planning period is 34,344 units. Modesto was assigned a RHNA of 11,248 total units, as shown in Table 4.

Table 4: City of Modesto RHNA, 2023–2031
Income Group % of County AMI Units % of Units
Extremely Low1 0–30% 1,403 12.5%
Very Low 30–50% 1,404 12.5%
Low 50–80% 1,943 17.3%
Moderate 80–120% 1,981 17.6%
Above Moderate > 120% 4,517 40.2%
Total - 11,248 100%
Source: Final Regional Housing Needs Allocation (RHNA) Plan: Stanislaus County Region Cycle 6 (2023-2031). 1Pursuant to AB 2634, local jurisdictions are also required to project the needs of extremely low-income households (0–30% of AMI). Fifty percent of the very low-income households are presumed to qualify as extremely low-income households.

Demographic Characteristics
Understanding the demographic characteristics and trends in a City is an important facet of planning for the needs of a community. This section summarizes the population size, age, and racial/ethnic composition of the City and region.

Population Trends
The City of Modesto, one of nine cities in Stanislaus County, is located centrally and largely surrounded by unincorporated county. Table 5 displays the population trends of Modesto and surrounding areas in Stanislaus County. Modesto has a population of 218,464 as reported by the 2020 US Census. The County saw a 6.2 percent increase in population over the 10-year time span. Modesto experienced a larger growth rate of 7.3 percent, about 14,944 people. This #20..
- 1010 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 45
is a comparable growth rate to the County as a whole and slightly lower than nearby jurisdictions of Riverbank and Oakdale, which saw higher population changes at 9.3 percent and 10.7 percent, respectively, while Turlock experienced a lower rate of growth at 12 percent.

Table 5: Regional Population Change, 2010–2020
Jurisdiction 2010 2020 % Change
Stanislaus County 514,453 546,235 6.2%
Modesto 203,520 218,464 7.3%
Ceres 45,899 49,302 7.4%
Turlock 68,560 72,740 6.1%
Riverbank 22,748 24,865 9.3%
Oakdale 20,703 23,181 12.0%
Source: San Joaquin Valley Regional Planning Agencies Policy Council Regional Data Set.

Table 6 provides annual average population growth from 2000 through 2020. Between 2010 and 2020, Stanislaus County experienced an average annual growth rate of approximately 0.6 percent per year. During the same ten-year period, Modesto saw slightly higher annual average growth at 0.7 percent (an increase of 14,944 residents), which was nearly identical to the 2000–2010 span, where the City’s population estimate increased by 14,664, or approximately 0.7 percent annually on average.

Table 6: Regional Annual Average Population Growth, 2000–2020 Jurisdiction
2000 2010 2020 2000–2010 2010–2020
Total Population Population
Increase AAGR Population Increase AAGR
Modesto 188,856 203,520 218,464 14,664 0.7% 14,944 0.7% Stanislaus
County 446,997 514,453 546,235 67,456 1.5% 31,782 0.6%
Source: San Joaquin Valley Regional Planning Agencies Policy Council Regional Data Set.

Age Composition
Modesto’s current and future housing needs are determined in part by the age characteristics of its residents as each age group typically has distinct housing needs and preferences. For instance, a higher proportion of young adults generally indicates a need for rental units and first-time homebuyer or first move-up opportunities, including condominiums, townhomes, and smaller single-family homes. Middle-aged residents are usually at the peak of their earning power and typically occupy larger homes. Senior residents are generally homeowners who have resided in their single-family homes for an extended period of time and may be in need #20..
- 1011 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 46
of making home adaptation improvements to facilitate aging in place or transitioning to smaller living spaces and/or assisted living facilities.

Table 7 summarizes the population’s age distribution and percentage change from 2000 to 2020. From 2010 to 2020, the largest increases in population were in the age groups of 65–74 years (53.1 percent or 6,284 individuals) and 60–64 years (48.7 percent or 1,828 individuals).

The largest decline was in the 15–19-year age group (-16.3 percent) followed by the 45–54-year age group (-3.0 percent). The 2000–2010 and 2010–2020 time periods both show a declining trend in the 35–44-year age group in Modesto; over the course of the 20-year period, this age group decreased 11.5 percent.

The growing 60–74-year age group suggests that there is a need for senior housing, which may take the form of age-restricted developments, smaller units, and housing with increased support services and proximity to healthcare. The growing 25–34-year age group could represent a need for first-time homeownership opportunities and larger housing units, as this age group is likely to start families.

Table 7: Population Age Distribution, Modesto
Age Group 2000 2010 2020 Change 2000–2010 Change 2010–2020 Under 5 years 14,335 16,151 15,968 1,816 12.7% -183 -1.1% 5 to 9 years 16,303 14,957 15,348 -1,346 -8.3% 391 2.6% 10 to 14 years 16,556 16,578 16,438 22 0.1% -140 -0.8%
15 to 19 years 15,264 16,727 13,999 1,463 9.6% -2,728 -16.3% 20 to 24 years 12,435 13,561 13,264 1,126 9.1% -297 -2.2% 25 to 34 years 25,421 27,701 33,140 2,280 9.0% 5,439 19.6% 35 to 44 years 29,185 26,361 25,886 -2,824 -9.7% -475 -1.8% 45 to 54 years 24,117 26,106 25,312 1,989 8.2% -794 -3.0% 55 to 59 years 8,088 12,664 13,541 4,576 56.6% 877 6.9% 60 to 64 years 6,190 8,018 11,923 1,828 29.5% 3,905 48.7% 65 to 74 years 10,568 11,837 18,121 1,269 12.0% 6,284 53.1% 75 to 84 years 7,598 7,916 7,986 318 4.2% 70 0.9%
85 years and over 2,796 3,321 3,559 525 18.8% 238 7.2%
Total 188,856 201,898 214,485 13,042 6.9% 12,587 6.2%
Source: US Census Bureau, Census 2000 SF1, Table P12; Census 2010 SF1, Table P12; American Community Survey 5-Year Data (2016–2020), Table DP05.

Figure 1 shows the age distribution of Modesto and Stanislaus County in 2020. The distribution is nearly identical between the two as Modesto has approximately 40 percent share of the #20..
- 1012 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 47
overall County population. The largest percentage of the population is the same in both the City and County (10-14 and 25 – 34 year age groups).

Figure 1: Regional Population by Age Distribution, 2020 Source: US Census Bureau, American Community Survey 1-Year Estimate 2020, Table B01001.

Race and Ethnicity
An understanding of the racial and ethnic trends in a region contributes to an analysis of housing demand. According to 2020 ACS data, Non-White populations in Modesto occupy multifamily units at a higher rate than White populations.4 Race and ethnicity characteristics also can be correlated with income levels. Table 8 summarizes the racial and ethnic composition of Modesto’s population in 2010 and 2020. As of 2020, 41 percent of Modesto residents of any race were of Hispanic origin and 59 percent were Non-Hispanic. Of the NonHispanic population, 42.5 percent were White, 7.5 percent were Asian or Pacific Islander, and 5 percent were Black or African American. Between 2010 and 2020, the White Non-Hispanic population decreased by 11 percent, and the Black or African American population increased by 39 percent.
4 US Census Bureau, American Community Survey 5-Year Data (2016–2020), Table B25032A-E. 7% 7%
8%
7%
6%
8%
8%
6% 6%
6%
6% 6%
6%
5%
4%
2%
2% 2%
7% 7%
8%
7%
7%
7%
7%
6% 6%
6% 6% 6%
5%
4%
3%
2%
1% 2%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
Modesto Stanislaus County
#20..
- 1013 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 48
Table 8: Racial and Ethnic Composition, Modesto
Racial/Ethnic Group
2010 2020
Number % Number %
Not Hispanic or Latino
White 102,441 50.7% 91,149 42.5%
Black or African American 7,193 3.6% 10,034 4.7%
American Indian & Alaska Native 1,221 0.6% 1,240 0.6%
Asian 12,908 6.4% 15,987 7.5%
Native Hawaiian & Pacific Islander 1,631 0.8% 2,195 1.0% Some other race alone 316 0.2% 298 0.1%
Two or more races 5,173 2.6% 6,181 2.9%
Subtotal 130,883 64.8% 127,084 59.3%
Hispanic or Latino
White 50,215 70.7% 55,316 63.3%
Black or African American 564 0.8% 612 0.7%
American Indian & Alaska Native 739 1.0% 1,246 1.4%
Asian 235 0.3% 411 0.5%
Native Hawaiian & Pacific Islander 223 0.3% 109 0.1%
Some other race alone 14,919 21.0% 16,919 19.4%
Two or more races 4,120 5.8% 12,788 14.6%
Subtotal 71,015 35.2% 87,401 40.7%
Total 201,898 100% 214,485 100%
Source: US Census Bureau, American Community Survey 5-Year Data 2010 and 2020, Table B03002.

Figure 2 compares the racial and ethnic composition of Modesto to Stanislaus County as a whole. Modesto is a fairly diverse community mostly comprised of Hispanic and White, NonHispanic populations. The population composition of Modesto and Stanislaus County is relatively similar with nominal differences. In Modesto, a smaller proportion of the population is Hispanic or Latino (43 percent) compared to the County (49 percent). The other notable difference is the Asian population, which represents 8 percent of Modesto’s population compared to Stanislaus County at 6 percent.
#20..
- 1014 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 49
Figure 2: Regional Racial/Ethnic Composition, 2021
Source: US Census Bureau, American Community Survey 1-Year Data (2021), Table B03002.

Employment Trends
Employment trends in a region also influence housing needs. The quality and/or pay of available employment can determine the need for various housing types and prices.

Table 9 shows the labor force and employment trends in Modesto in 2010, 2015, and 2020.

The labor force has increased by over 6,800 between 2010 and 2020 as well as the population not in the labor force. However, the not in the labor force population has decreased from 2015 to 2020. The unemployment rate increased from 7.8 percent to 8.5 percent, between 2010 and 2020 and, according to Local Area Unemployment Statistics (LAUS), it decreased from 18.6 percent in 2015 to 7.9 percent in 2020. In 2020, the unemployment rate for Modesto at 8.5 percent was lower than the County’s unemployment rate of 8.8 percent, according to the 2020 Census.

Table 9: Employment Trends, Modesto
Year In Labor
Force
Not in Labor
Force Employment Unemployment Unemployment Rate
2010 92,867 58,117 81,111 11,756 7.8% 18.6%*
2015 96,879 66,786 82,547 14,332 8.9% 10.7%*
2020 99,744 64,189 91,291 8,453 8.5% 7.9%*
Source: US Census Bureau, American Community Survey 5-Year Data 2010, 2015, and 2020, Table DP03. *Source: CA Employment Development Department, Local Area Unemployment Statistics (LAUS) program 43% 49%
4%
8% 3%
4% 6%
4%
41% 37%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Modesto Stanislaus County
Hispanic or Latinx Black or African American, Non-Hispanic Asian / API, Non-Hispanic Other Race or Multiple Race, Non-Hispanic White, Non-Hispanic American Indian or Alaska Native, Non-Hispanic #20..
- 1015 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 50
Figure 3 displays the employment share by industry in Modesto and Stanislaus County. The employment by industry breakdown when compared between the City and County are largely similar, but have a few nominal differences. Modesto has a slightly larger percentage of workers employed in the Retail and Manufacturing, Wholesale & Transportation sectors than in Stanislaus County, the latter comprising the largest sector in Modesto at 26 percent. The City and County share a similar or identical percentage of workers employed in several other services sectors.

Figure 3: Regional Employment by Industry, 2021
Source: US Census Bureau, American Community Survey 1-Year Data (2021), Table C24030.

Figure 4 displays the regional employment by occupation for Modesto and Stanislaus County.

As with regional employment by industry, the makeup of employment by occupation is very similar across the City and County, one percent difference between each industry. Modesto has a slightly higher percentage of people employed in management, business, science, and arts occupations (32 percent) than the County (31 percent); management services is also the highest percentage of all employment by occupation categories. The second highest percentage of employment was in production, transportation, and material moving (20

#20..
- 1016 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 51
percent) which was slightly less than the County (21 percent). The comparison of regional employment by occupation and industry shows no specific housing need unique to Modesto as compared to the County.

Figure 4: Regional Employment by Occupation, 2021
Source: US Census Bureau, American Community Survey 1-Year Data (2021), Table C24010.

Household Characteristics
This section describes Modesto’s household characteristics, including data on the number of households, household size, and household income. The US Census Bureau defines a household as all persons living in a single housing unit, whether or not they are related. A household can be one person, a single family, multiple families, or any group of related or unrelated persons. The US Census Bureau defines a family as related persons living within a single housing unit.

As shown in Table 10, the number of households in Modesto increased by 6.4 percent between 2000 and 2010. The County experienced twice the amount of growth as Modesto during the same time period (12.8 percent). Between 2010 and 2020, Modesto’s household growth was slightly lower, at 2.9 percent, than the County and the State, at 6.7 percent and 5.7 percent, respectively. In 2020, the US Census Bureau reported 71,113 households in Modesto. 32% 31%
16% 17%
19% 18%
20% 21%
12% 13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Modesto Stanislaus County
Natural Resources, Construction, and Maintenance Occupations Production, Transportation, and Material Moving Occupations Sales and Office Occupations
Service Occupations
Management, Business, Science, and Arts Occupations
#20..
- 1017 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 52
Table 10: Number of Households, 2000–2020
Area 2000 2010 2020 % Change 2000–
2010
% Change 2010–
2020
Modesto 64,959 69,107 71,113 6.4% 2.9%
Stanislaus
County 145,146 163,841 174,826 12.8% 6.7%
California 11,502,870 12,392,852 13,103,114 7.7% 5.7%
Source: US Census Bureau, Decennial Census 2000, Table DP1; American Community Survey 5-Year Data 2010 and 2020, Table S1101.

The average number of persons per household in Modesto was 3.0 in 2020, a slight increase from 2.9 in 2010. The County and State also saw an increase in household size since 2010. As shown in Table 11, the average number of persons per household in Modesto is lower than the countywide average (3.1) but slightly higher than the statewide average of 2.9. A larger household size may indicate a need for larger housing units with more bedrooms. It may also suggest a need for more affordable units to alleviate the pressure for individuals to cohabitate primarily because of high housing costs. These issues are further analyzed in the Overpayment and Overcrowding section of the needs assessment.

Table 11: Regional Average Household Size
Area 2000 2010 2020
Modesto 2.9 2.9 3.0
Stanislaus County 3.0 3.1 3.1
California 2.9 2.9 2.9
Source: US Census Bureau, Decennial Census 2000, Table DP1 SF2; American Community Survey 5-Year Data 2010 and 2020, Table S1101.

Figure 5 shows the household size distribution of Modesto and Stanislaus County. The distribution is similar between the City and County. Modesto has a slightly higher proportion of one-person and two-person households than the County and fewer four- and five-person households.
#20..
- 1018 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 53
Figure 5: Regional Household by Size, 2021
Source: US Census Bureau, American Community Survey 1-Year Estimates (2021), Table B25009.

Table 12 shows trends in household size from 2010 through 2020. The largest increase has been in 3-person households. In 2010 and 2015, they made up about 15 percent of all households and now comprise over 17 percent of total households. This represents a 19 percent increase in three-person households over the 10-year period. Households with five persons increased over 18 percent from 2010 to 2020. In the same time frame, two-person households decreased slightly (2 percent) and six-person households declined substantially (21 percent).
22% 20%
31% 29%
18%
17%
14%
15%
10% 11%
4% 5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Modesto Stanislaus County
1-person household 2-person household 3-person household 4-person household 5-person household 6-person household 7-or-more person household
#20..
- 1019 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 54
Table 12: Household Size, Modesto, 2010–2020
Household Size 2010 2015 2020 2010–
2020
Units % of
Total Units % of Total Units % of Total % Change
1-Person Household 15,822 23.1% 17,334 24.6% 16,136 22.7% 1.9% 2-Person Household 21,122 30.9% 21,630 30.7% 20,692 29.1% -2.0% 3-Person Household 10,482 15.3% 10,802 15.3% 12,497 17.6% 19.2% 4-Person Household 10,429 15.3% 10,476 14.9% 10,860 15.3% 4.1% 5-Person Household 5,315 7.8% 5,622 8.0% 6,306 8.9% 18.6% 6-Person Household 3,364 4.9% 2,749 3.9% 2,655 3.7% -21.1% 7-or-More Person
Household 1,833 2.7% 1,868 2.7% 1,967 2.8% 7.3%
Total 68,367 100% 70,481 100% 71,113 100% 4.0%
Source: US Census Bureau, American Community Survey 5-Year Estimates (2006–2010, 2011–2015, 2016–2020), Table B25009.

The decrease in two- and six-person households may partially be attributed to Modesto’s recent trend toward the average family size of 3.5, as shown in Table 13. Average family size marginally increased from 3.50 in 2010 to 3.53 in 2020. This contrasts with the County’s increase in average family size from 3.55 to 3.60 over the same period. This correlates with Table 7, which shows that the 15–19-year age group decreased 16 percent and the 20–24 year age group decreased by 2 percent between 2000 and 2020. This data may indicate that as families grow, the children are leaving the City, possibly to pursue higher education.

Table 13: Regional Family Household Characteristics, 2010–2020 Area 2010 2015 2020 Change 2010–2020
Modesto
Families as % of All Households 70.7% 69.4% 71.8% 1.1%
Average Family Size 3.50 3.47 3.53 0.3
Stanislaus County
Families as % of All Households 74.6% 73.7% 74.3% -0.3% Average Family Size 3.55 3.58 3.60 0.5
Source: US Census Bureau, American Community Survey 5-Year Data (2016–2020, 2011–2015, and 2006–2010), Table S1101.

Table 14 displays household size by tenure in Modesto. Just over 55 percent of housing units are owner-occupied citywide. When looking at tenure by household size, five-person and more households have a lower homeownership rate than other household sizes. Finding a home #20..
- 1020 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 55
large enough to accommodate five or more persons may make it more challenging to finance a home.

Table 14: Household Size by Tenure, Modesto, 2020
Owner Occupied Renter Occupied Total
Persons/
HouseholdModesto Stanislaus
County Modesto Stanislaus County Modesto Stanislaus County 1 8,052 11.3% 18,351 10.5% 8,084 11.4% 17,499 10.0% 16,136 22.7% 35,850 20.5% 2 13,529 19.0% 33,525 19.2% 7,163 10.1% 15,850 9.1% 20,692 29.1% 49,375 28.2% 3 6,158 8.7% 16,709 9.6% 6,339 8.9% 13,981 8.0% 12,497 17.6% 30,690 17.6% 4 5,941 8.4% 16,656 9.5% 4,919 6.9% 11,680 6.7% 10,860 15.3% 28,336 16.2% 5 3,418 4.8% 9,513 5.4% 2,888 4.1% 7,493 4.3% 6,306 8.9% 17,006 9.7% 6 1,411 2.0% 4,427 2.5% 1,244 1.7% 3,612 2.1% 2,655 3.7% 8,039 4.6% 7+ 1,104 1.6% 3,494 2.0% 863 1.2% 2,036 1.2% 1,967 2.8% 5,530 3.2% Total 39,613 55.8% 102,675 58.7% 31,500 44.3% 72,151 41.4% 71,113 100% 174,826 100% Source: US Census Bureau, American Community Survey 5-Year Data (2016-2020), Table B25009.

The median household income for Modesto in 2021 was $70,469, which is within 5 percent of the median income for the County ($73,982). In the City, the median income for owneroccupied households ($89,213) was about $39,990 higher than the median income for renteroccupied households ($45,993). The County has slightly less of an income disparity between owners and renters, with owner-occupied households earning about $33,300 more than renter-occupied households.

Table 15: Median Household Income by Tenure
Jurisdiction 2021 Median Income
Modesto $70,469
Owner-Occupied Households $89,213
Renter-Occupied Households $49,223
Stanislaus County $73,982
Owner-Occupied Households $91,608
Renter-Occupied Households $49,305
Source: US Census Bureau, American Community Survey 1-Year Data (2021), Table B25119.

The State of California uses five income categories to determine eligibility for housing programs. Table 16 shows the State-defined income ranges for each affordability category based on the Stanislaus County AMI of $70,700 for a household of four. #20..
- 1021 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 56
Table 16: Income Range by Affordability Level Based on State Area Median Income, 2021
Affordability Category % of County Median Income Range
Extremely Low Income < 30% ≤ $26,500
Very Low Income 31%–50% $26,501–$35,650
Low Income 51%–80% $35,651–$57,050
Moderate Income 81%–120% $57,051–$84,850
Above Moderate Income > 121% > $84,850
Source: California Department of Housing and Community Development, Revised State Income Limits for 2021, Dec. 31, 2021.

Table 17 provides a breakdown of income level by tenure in Modesto, using the 2015–2019 CHAS data. Approximately 45 percent of households in Modesto are renter-occupied, compared to 42 percent of households in the County. In Modesto, about 48 percent of households are above the HUD HAMFI, which is comparable to the County’s 47.5 percent.

Table 17: Household Income Level by Tenure, 2019
Income Level Owner
Occupied %
Renter
Occupied % Total %
Modesto
Less than or equal to 30% of
HAMFI1
2,110 2.9% 6,200 8.6% 8,310 11.5%
Greater than 30% but less than or
equal to 50% of HAMFI 2,905 4.0% 5,860 8.1% 8,765 12.1% Greater than 50% but less than or
equal to 80% of HAMFI 5,920 8.2% 7,385 10.2% 13,305 18.4% Greater than 80% but less than or
equal to 100% of HAMFI 3,790 5.2% 3,220 4.5% 7,010 9.7% Greater than 100% of HAMFI 25,145 34.8% 9,795 13.5% 34,940 48.3% Total2 39,875 55.1% 32,460 44.9% 72,330 100%
Stanislaus County
Less than or equal to 30% of
HAMFI1
6,005 3.5% 14,430 8.3% 20,435 11.8%
Greater than 30% but less than or
equal to 50% of HAMFI 8,400 4.8% 13,695 7.9% 22,095 12.7% Greater than 50% but less than or
equal to 80% of HAMFI 14,975 8.6% 16,055 9.2% 31,030 17.8% Greater than 80% but less than or
equal to 100% of HAMFI 10,365 6.0% 7,300 4.2% 17,665 10.2% Greater than 100% of HAMFI 60,830 35.0% 21,840 12.6% 82,670 47.5% Total2 100,575 57.8% 73,320 42.2% 173,900 100%
#20..
- 1022 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 57
Source: US Department of Housing and Urban Development (HUD), CHAS ACS tabulation, 2015–2019. 1 HUD area median family income (HAMFI).
2 Data presented in this table are based on special tabulations from sample Census data. The number of households in each category usually deviates slightly from the 100 percent total due to the need to extrapolate sample data out to total households.

Interpretations of these data should focus on the proportion of households in need of assistance rather than on precise numbers.

Housing Stock Characteristics
This section discusses the housing stock in Modesto, including change in housing units, unit size, unit type, age of housing stock, overpayment and overcrowding rates, and housing age and conditions. By analyzing past and current housing trends in the housing stock, future housing needs can be assessed.

Table 18 summarizes the number of housing units in the City and County from 2000 to 2020.

In 2000, Modesto had 67,179 housing units. By 2010, the number of housing units had increased to 75,044, an 11.7 percent increase. Between 2010 and 2020, the City is estimated to have approximately 1,138 fewer units (1.5 percent). There was no major loss of units or demolition without replacement during the housing cycle, and the decrease is within the margin of error in the census data. In 2020, the Census reported 73,906 housing units in the City, which comprised nearly 41 percent of the County’s housing units. Modesto’s share of the County’s housing units slightly decreased from 2000 to 2020, suggesting that housing unit production in the County is outpacing the production in Modesto.

Table 18: Regional Housing Units, 2000–2020
Year Modesto % Change Stanislaus County % Change Modesto as % of County 2000 67,179 - 150,807 - 44.5%
2010 75,044 11.7% 177,591 17.8% 42.2%
2020 73,9061-1.5% 182,239 2.6% 40.6%
Source: US Census Bureau, Decennial Census 2000, Table H001 SF1, ACS 16-20 (5-year Estimates), Table B25001. 1 Margin of Error +/- 1,020
Table 19 summarizes the distribution of unit size by tenure in 2020. The most common unit size for renter-occupied units was two-bedroom units, followed by three-bedroom units. The most common size for owner-occupied units was three-bedroom units, followed by four bedrooms units. Owner-occupied units tend to be larger than renter-occupied units. #20..
- 1023 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 58
Table 19: Unit Size by Tenure, Modesto, 2020
Unit Size Owner-Occupied Renter-Occupied Total Occupied Housing Units Units % Units % Units %
No bedroom/Studio 178 0.3% 1,386 1.9% 1,564 2.2%
1 bedroom 356 0.5% 5,699 8.0% 6,055 8.5%
2 bedrooms 5,127 7.2% 11,365 16.0% 16,492 23.2%
3 bedrooms 22,869 32.2% 10,622 14.9% 33,491 47.1%
4 bedrooms 8,758 12.3% 2,157 3.0% 10,915 15.3%
5 or more bedrooms 2,325 3.3% 271 0.4% 2,596 3.7%
Total 39,613 55.7% 31,500 44.3% 71,113 100%
Source: US Census Bureau, American Community Survey 5-Year Data (2016–2020), Table B25042.

Table 20 summarizes Modesto’s housing inventory by building type from 2011 to 2021. In 2021, single-family detached units comprised the largest percentage of housing stock, approximately 71 percent, with 53,284 units. Multifamily housing made up 18.5 percent with 13,855 units. Compared to Stanislaus County, Modesto has less of a share of the housing stock in the form of single-family detached housing units, by 5 percent. Single-family detached homes make up 76 percent of the County’s housing and multifamily housing accounts for 14 percent. Between 2011 and 2021, the distribution of building types has remained the same for both the County and the City.
#20..
- 1024 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 59
Table 20: Regional Housing Inventory by Unit Type
Building Type
2011 2021
Units % Units %
Modesto
Single-Family Home: Detached 49,759 68.7% 53,284 71.2%
Single-Family Home: Attached1 4,377 6.0% 5,721 7.7%
Multifamily2 16,751 23.1% 13,855 18.5%
Mobile Homes 1,584 2.2% 1,966 2.6%
Total 72,471 100% 74,826 100%
Stanislaus County
Single-Family Home: Detached 132,727 73.9% 139,906 76.2% Single-Family Home: Attached1 9,061 4.2% 9,325 5.1%
Multifamily2 30,321 16.4% 26,294 14.3%
Mobile Homes 7,522 4.8% 8,136 4.4%
Total 179,631 100% 183,661 100%
Source: US Census Bureau, American Community Survey 1-Year Estimates (2011-2021), Table B25024 1 “Single-Family Home: Attached” is defined as a one-unit structure attached to another unit by a common wall; they are commonly referred to as a townhouse, half-plex, or row house. The shared wall or walls extend from the foundation to the roof with adjoining units to form a property line. Each unit has individual heating and plumbing systems. 2 “Multifamily” refers to a structure containing two or more units and not classified as a “Single-Family Home: Attached” structure.

The units in the structure share attic space and heating and plumbing systems.

Table 21 displays the US Census Bureau’s estimates of the number of occupied housing units by building type and tenure in Modesto in 2020. Most of Modesto’s housing stock is composed of owner-occupied, detached single-family homes (53.3 percent of total units) followed by renter-occupied, detached single-family homes (18.5 percent of total units). Analyzing the tenure split of the various housing building types reveals that 71.5 percent of all units were detached single-family homes were owner occupied. Multifamily housing was predominantly renter occupied (93.4 percent of total multifamily units and 16.8 percent of all total units).

Diversifying Modesto’s housing stock to include more multifamily housing in both rental and ownership forms has the potential to provide more affordable housing options, given the construction efficiencies of the multifamily building type. Multifamily housing can also be beneficial for seniors, people with disabilities, and those who prefer less home maintenance or do not need the yard space characteristic of single-family properties. #20..
- 1025 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 60
Table 21: Housing Building Type by Tenure, Modesto, 2021 Building Type Owner
Occupied
% of Total
Units
Renter
Occupied
% of Total
Units
Total
Units
Detached Single-Family Homes 38,291 74.3% 13,275 25.7% 51,566 Attached Single-Family Homes 1,606 29.4% 3,863 70.6% 5,469 Multifamily Housing 850 6.6% 12,090 93.4% 12,940
Mobile Homes 1,593 90.8% 162 9.2% 1,755
Boat, RV, Van, etc. 0 0.0% 45 100% 45
Total 42,340 58.9% 29,435 41.0% 71,775
Source: US Census Bureau, American Community Survey 1-Year Estimates (2021), Table B25032.

Housing Age and Condition
Housing is considered substandard when conditions are found to be below the minimum standard of living defined in the California Health and Safety Code. Substandard housing units include those in need of repair and/or replacement. Households living in substandard conditions are considered to be in need of housing assistance, even if they are not seeking alternative housing arrangements, due to threats to health and safety.

A household is considered substandard, or to have a housing problem, if it has one or more of the four following housing problems:
▪ Housing unit lacks complete kitchen facilities
▪ Housing unit lacks complete plumbing facilities
▪ Housing unit is overcrowded
▪ Household is cost burdened
In addition to structural deficiencies and standards, the lack of infrastructure and utilities often serves as an indicator for substandard conditions. Table 22 summarizes the number of units lacking plumbing or complete kitchen facilities. According to the 2021 ACS one-year estimates, 195 occupied units in Modesto lacked complete plumbing facilities. Of these, 134 were renteroccupied and 61 were owner-occupied. A total of 379 units lacked complete kitchen facilities.

Of those, 61 were owner-occupied and 318 were renter-occupied. It should be noted that there is potential for overlap in the number of substandard housing units, as some units may lack both complete plumbing and kitchen facilities (i.e. the number of units is the same for owneroccupied units lacking complete plumbing and kitchen facilities). #20..
- 1026 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 61
Table 22: Units Lacking Plumbing or Complete Kitchen Facilities, 2021 Units Owner
Occupied
% of
Total
Units
Renter
Occupied
% of
Total
Units
Total
Units
% of
Total
Units
Lacking Complete
Plumbing Facilities 61 0.1% 134 0.2% 195 0.3%
Lacking Complete
Kitchen Facilities 61 0.1% 318 0.4% 379 0.5%
Based upon a combination of previous “windshield surveys,” observations and experiences of the code enforcement and planning staff, and indicators from the redevelopment blight surveys, the City has estimated that approximately 1,435 units, or 2 percent of all units are substandard housing.

The age of a housing unit is often an indicator of housing conditions. In general, housing that is 30 years old or older may need repairs based on the useful life of materials. Housing over 50 years old is considered aged and is more likely to need major repairs. Many federal and state programs use age of housing as one factor to determine housing needs and the availability of funds for housing and community development.

Table 23 summarizes the age of Modesto’s housing stock by tenure in 2021. Approximately 88 percent of all housing units in the City were built prior to 1999, and 57 percent of units were built before 1980. The City saw nearly 67 percent of all of its housing built between 1960 and 1999 (a period of 39 years). The City has seen a smaller percentage of housing built in the last 12 years (759 owner-occupied units and 979 rental units). These numbers show that rental needs have outweighed the needs for for-sale housing in Modesto since 2010. #20..
- 1027 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 62
Table 23: Year Housing Built, Modesto
Year Built Owner Occupied Renter Occupied Total Units
Built 2020 or later 64 0.1% 0 0.0% 64 0.1%
Built 2010 to 2019 759 1.1% 979 1.4% 1,738 2.4%
Built 2000 to 2009 5,131 7.1% 1,451 2.0% 6,582 9.2%
Built 1990 to 1999 4,464 6.2% 3,590 5.0% 8,054 11.2%
Built 1980 to 1989 8,718 12.1% 5,288 7.4% 14,006 19.5%
Built 1970 to 1979 9,960 13.9% 7,547 10.5% 17,507 24.4% Built 1960 to 1969 5,319 7.4% 3,358 4.7% 8,677 12.1%
Built 1950 to 1959 4,769 6.6% 3,668 5.1% 8,437 11.8%
Built 1940 to 1949 1,311 1.8% 1,923 2.7% 3,234 4.5%
Built 1939 or earlier 1,845 2.6% 1,631 2.3% 3,476 4.8%
Total 42,340 59.0% 29,435 41.0% 71,775 100%
Source: US Census Bureau, American Community Survey 1-Year Estimates (2021), Table B25036.

Housing tenure by date of occupancy is listed in Table 24, which shows when households moved into their housing unit. About 22 percent of owner-occupied households have been in the same place of residence since 2000.

Table 24: Housing Tenure by Date of Occupancy, Modesto
Move In Year Owner
Occupied
% of
Units
Renter
Occupied
% of
Units Total % of Units
Moved in 2019 or later 6,567 15.5% 11,528 39.2% 18,095 25.2% Moved in 2015 to 2018 7,667 18.1% 9,115 31.0% 16,782 23.4% Moved in 2010 to 2014 7,680 18.1% 5,098 17.3% 12,778 17.8% Moved in 2000 to 2009 9,424 22.3% 2,422 8.2% 11,846 16.5% Moved in 1990 to 1999 5,512 13.0% 902 3.1% 6,414 8.9%
Moved in 1989 or earlier 5,490 13.0% 370 1.3% 5,860 8.2% Total 42,340 100% 29,435 100% 71,775 100%
Source: US Census Bureau, American Community Survey 1-Year Estimates (2021), Table B25038.

Median Home Sale Prices
Figure 6 shows the change in home prices in Modesto and Stanislaus County from April 2015 to October 2022. While the City and County follow the same general trend over time, Modesto home prices are slightly lower than the County. The median sales prices for new and resale #20..
- 1028 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 63
homes in Modesto have steadily increased during this time, with a minor plateau at the start of the COVID-19 pandemic in early 2020. The median home price in October 2022 was $436,591, which was 4 percent ($18,527) lower than the County median of $455,118.

Figure 6: Regional Home Prices Over Time, 2015-2022
Source: Zillow Home Value Index (ZHVI), December 2022.

Home values in Modesto increased by 5.5 percent between October 2021 and October 2022, from $413,736 to $436,591, as shown in Table 25. In October 2022, the Zillow home value index in Stanislaus County was $455,118, which represented a 5.8 percent increase since October 2021, similar rate to Modesto. In October 2022, the home values in Stanislaus County were 4.2 percent higher than those in Modesto. Since a household can typically qualify to purchase a home that is 2.5 to 3.0 times the annual income of that household, Modesto’s median income of about $62,182 implies that the median sales price should be between $155,455 and $186,546.5 The home value index of approximately $436,000 indicates a high potential for housing cost burden in the City.
5 Assumes 10% down payment; 5.00% mortgage interest rate; taxes, insurance, PMI and HOA account for 35% of housing costs; and uses 2022 Stanislaus Regional Housing Authority utility allowances. $-
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
$350,000.00
$400,000.00
$450,000.00
$500,000.00
2015-04 2016-02 2016-12 2017-10 2018-08 2019-06 2020-04 2021-02 2021-12 2022-10 Modesto Stanislaus County
#20..
- 1029 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 64
Table 25: Zillow Home Value Index, Neighboring Jurisdictions Jurisdiction October 2021 October 2022 % Change
Modesto $413,736 $436,591 5.5%
Ceres $415,024 $440,606 6.2%
Riverbank $440,535 $468,892 6.4%
Oakdale $523,298 $552,190 5.5%
Turlock $440,883 $468,699 6.3%
Stanislaus County $430,180 $455,118 5.8%
Source: Zillow Housing Market Data, 2022.

Rental Prices
Table 26 and Figure 7 show median home rental prices in Modesto and Stanislaus County from 2010 to 2020. In 2020, the median rental price in Modesto was $1,304. This is an 18 percent increase from the 10-year low of $1,105 in 2015. Rental prices have been steadily increasing in the City since 2015. It should be noted that these median rental prices do not fully capture the housing market effects of the global COVID-19 pandemic. One of the economic impacts seen in California during the COVID-19 pandemic was a rapid increase in home prices, potentially caused by a rapid increase in remote work and higher demand for housing in suburban settings such as Modesto. As a result, rental values in the years following the onset of the pandemic are estimated to be significantly higher and continue to rise through 2022.

Table 26: Regional Median Monthly Rent, 2010–2020
Jurisdiction 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Modesto $1,173 $1,149 $1,153 $1,125 $1,120 $1,105 $1,122 $1,148 $1,193 $1,247 $1,304 Stanislaus
County $1,192 $1,171 $1,165 $1,137 $1,126 $1,103 $1,113 $1,140 $1,187 $1,235 $1,275 Source: American Community Survey 5-Year Estimates, Table B25105. #20..
- 1030 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 65
Figure 7: Regional Median Rental Prices, 2010-2020
Source: US Census Bureau, American Community Survey 5-Year Estimates, Table B25105.

Table 27 displays the affordable and fair market rents for low-income households in the Modesto HUD Fair Market Rent Area, which includes Stanislaus County. Fair market rents are estimates of what a person moving today can expect to pay in gross rent (cost of shelter plus utilities) for a modestly priced rental home in a given area. The kind of home that can be rented for the fair market rent is in decent condition, but it is not luxury housing. The methodology used to calculate hourly wage and annual salary required to afford the fair market rents without spending greater than 30 percent of income on housing is provided by the National Low Income Housing Coalition.

Table 27: Affordable and Fair Market Rent for Low-Income Households (2023) Unit Size Hourly Wage
Required1
Annual Salary
Required2
Monthly
Income
Required
Average Fair
Market Rent3
Studio $18.00 $42,000 $3,500 $1,050
One Bedroom $19.25 $43,300 $3,608 $1,083
Two Bedroom $24.04 $55,200 $4,600 $1,380
Three Bedroom $33.86 $77,900 $6,492 $1,948
Four Bedroom $39.67 $91,300 $7,608 $2,283
1 Hourly wage assumes working 40 hours per week and 52 weeks per year. 2Multiply the FMR by 12 to get yearly rental cost. Then divide by .3 to determine the total annual income needed to afford the FMR without spending more than 30 percent of income on housing. 3HUD FY 2023 Fair Market Rent Documentation System for Modesto, CA HUD Metro FMR Area. $1,000
$1,050
$1,100
$1,150
$1,200
$1,250
$1,300
$1,350
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Modesto Stanislaus County
#20..
- 1031 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 66
Vacancy Rates
Vacancy rates are indicators of housing supply and demand that reflect the degree of housing choice that is available. Higher vacancy rates can induce downward price pressure, while low vacancy rates can influence upward price pressures. Low vacancy rates usually indicate high demand and/or low supply conditions in the housing market. Vacancy rates that are too low can force prices up, making it more difficult for lower- and moderate-income households to find housing. For rental units, a 7 to 8 percent vacancy rate is considered “healthy,” and for owner-occupied housing a vacancy rate of 2 to 3 percent is considered “healthy”. In 2015, the vacancy rate in Modesto was 6.3 percent and decreased to 3.8 percent in 2020. Table 28 summarizes the number of occupied and vacant units in Modesto and Stanislaus County in 2015 and 2020.

Table 28: Regional Occupancy Rates
Occupancy Status Stanislaus County Modesto
2015 % 2020 % 2015 % 2020 %
Occupied Housing Units 169,196 93.9% 174,826 95.9% 70,481 93.7% 71,113 96.2% Vacant Housing Units 10,973 6.1% 7,413 4.1% 4,722 6.3% 2,793 3.8% Total Housing Units 180,169 100% 182,239 100% 75,203 100% 73,906 100% Source: US Census Bureau, American Community Survey 5-Year Data (2011–2015 and 2016–2020), Table B25002 Overpayment and Overcrowding
Overpayment is defined as households paying more than 30 percent of their gross income on housing-related expenses, including rent or mortgage payments and utilities. Households paying greater than 30 percent of their gross income on housing-related expenses are considered to be cost burdened. Severe overpayment occurs when households pay 50 percent or more of their gross income for housing. Higher costs for housing may contribute to households having a limited ability to cover other everyday living expenses. The impact of housing costs is more apparent for extremely low-, very low-, and low-income households, especially renter households.

Table 29 categorizes renters based on the percentage of household income spent on rent.

According to 2020 ACS data, about 57 percent of households spend more than 30 percent of their income on rent. Over 27 percent of households spend more than 50 percent on rent. #20..
- 1032 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 67
Table 29: Gross Rent as a Percentage of Household Income, 2021 Percent of Household Income Number of Households Percent of Households Less than 10.0 percent 485 1.6%

10.0 to 14.9 percent 1,897 6.4%

15.0 to 19.9 percent 2,680 9.1%

20.0 to 24.9 percent 2,378 8.1%

25.0 to 29.9 percent 3,986 13.5%

30.0 to 34.9 percent 2,711 9.2%

35.0 to 39.9 percent 2,315 7.9%

40.0 to 49.9 percent 3,829 13.0%

50.0 percent or more 8,045 27.3%
Not computed 1,109 3.8%
Total 29,435 100%
Source: US Census Bureau, American Community Survey 1-Year Estimates (2021), Table B25070 Table 30 illustrates housing cost as a percentage of household income by tenure. It shows the number and percentage of households in Modesto and Stanislaus County that experience a cost burden and severe cost burden. According to 2015–2019 HUD CHAS data, in Modesto, 39,900 households (55 percent) experience some form of overpayment, with 12,430 households (23.5 percent) experiencing severe overpayment. This is a significant share of the community experiencing a housing cost burden and reflective of a larger regional issue. The County has a lesser share overpaying for housing; 51.9 percent of households experience some degree of overpayment, and 16.3 percent experience severe overpayment. Renters are disproportionately affected by overpayment in both Modesto and the County.

Table 30: Overpayment by Income Level and Tenure, 2019
Household Income
Range All Households Households with Housing Cost Burden Number %
Overpayment (>30% of
income on rent)
Severe Overpayment (>50%
of income on rent)
Owner Households, Modesto
<= 30% of HAMFI 6,200 8.6% 1,645 5.1% 1,275 3.9%
> 30% £ 50% of HAMFI 5,860 8.1% 1,990 6.1% 1,265 3.9%
> 50% £ 80% of HAMFI 7,385 10.2% 3,185 9.8% 975 3.0%
> 80% £ 100% of HAMFI 3,220 4.5% 1,215 3.7% 155 0.5%
#20..
- 1033 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 68
Household Income
Range All Households Households with Housing Cost Burden > 100% of HAMFI 9,795 13.5% 2,670 8.2% 250 0.8%
Owner Subtotal 32,460 44.9% 10,705 33.0% 3,920 12.1%
Renter Households, Modesto
<= 30% of HAMFI 2,110 2.9% 4,970 6.9% 4,390 6.1%
> 30% £ 50% of HAMFI 2,905 4.0% 5,195 7.2% 3,275 4.5%
> 50% £ 80% of HAMFI 5,920 8.2% 5,010 6.9% 740 1.0%
> 80% £ 100% of HAMFI 3,790 5.2% 895 1.2% 55 0.1%
> 100% of HAMFI 25,145 34.8% 695 1.0% 50 0.1%
Renter Subtotal 39,875 55.1% 16,765 42.0% 8,510 21.3%
Total (Owners & Renters) 72,335 100% 27,470 38.0% 12,430 23.5% Owner Households, County
<= 30% of HAMFI 6,005 3.5% 4,605 4.6% 3,460 3.4%
> 30% £ 50% of HAMFI 8,400 4.8% 5,135 5.1% 3,015 3.0%
> 50% £ 80% of HAMFI 14,975 8.6% 7,595 7.6% 2,375 2.4%
> 80% £ 100% of HAMFI 10,365 6.0% 3,565 3.5% 590 0.6%
> 100% of HAMFI 60,830 35.0% 5,915 5.9% 700 0.7%
Owner Subtotal 100,575 57.8% 26,815 26.7% 10,140 10.1%
Renter Households, County
<= 30% of HAMFI 14,430 8.3% 11,565 15.8% 10,080 13.7%
> 30% £ 50% of HAMFI 13,695 7.9% 11,500 15.7% 6,215 8.5% > 50% £ 80% of HAMFI 16,055 9.2% 9,525 13.0% 1,565 2.1% > 80% £ 100% of HAMFI 7,300 4.2% 1,565 2.1% 135 0.2%
> 100% of HAMFI 21,840 12.6% 1,125 1.5% 155 0.2%
Renter Subtotal 73,320 42.2% 35,280 48.1% 18,150 24.8%
Total (Owners & Renters) 173,895 100% 62,095 35.7% 28,290 16.3% Source: HUD CHAS data, 2015–2019, Summary Level data for Stanislaus County and City of Modesto.

An overcrowded housing unit is defined by the US Census Bureau as a housing unit occupied by more than one person per room (excluding bathrooms, kitchen, hallway, and closet space).

Occupancy by more than 1.5 persons per room constitutes severe overcrowding.

Overcrowding can affect public facilities and services, reduce the quality of the physical #20..
- 1034 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 69
environment, and create conditions that contribute to deterioration of the housing stock.

Additionally, overcrowding can indicate that a community does not have an adequate supply of affordable housing and/or variety of suitable housing units to meet the needs of the community.

Table 31 summarizes overcrowding and severe overcrowding in Modesto by tenure.

Approximately 4,104 households, roughly 5.8 percent of households, in Modesto were experiencing overcrowding or severe overcrowding in 2020. This includes 1,739 owneroccupied and 2,365 renter-occupied households. Overall, Modesto has a slightly lower percentage of overcrowded households compared to the County (5.8 percent and 7.4 percent, respectively).

Table 31: Overcrowding and Severe Overcrowding by Tenure Owners Renters Total
Persons per
Room
Overcrowded
Households % of Total Overcrowded Households
% of
Total
Overcrowded
Households
% of
Total
Modesto

1.01 to 1.50 1,159 28.2% 1,944 47.4% 3,103 4.4%
>1.50 580 14.1% 421 10.3% 1,001 1.4%
Total
Overcrowded 1,739 42.4% 2,365 57.6% 4,104 5.8%
Stanislaus County

1.01 to 1.50 3,915 30.3% 5531 42.7% 9,446 5.4%
>1.50 1,608 12.4% 1,887 14.6% 3,495 1.9%
Total
Overcrowded 5,523 42.7% 7,418 57.3% 12,941 7.4%
Source: US Census Bureau, American Community Survey 5-Year Data (2016–2020), Table B25014.

Preservation of Units At Risk of Conversion
Jurisdictions are required by state Housing Element law to analyze government-assisted housing that is eligible to convert from low-income to market-rate housing over the next 10 years. State law identifies housing assistance as a rental subsidy, mortgage subsidy, or mortgage insurance to an assisted housing development. Government-assisted housing might convert to market-rate housing for a number of reasons, including expiring subsidies, mortgage repayments, or expiration of affordability restrictions. #20..
- 1035 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 70
Qualified Entities
Under Government Code Section 65863.11, owners of federally assisted projects must provide a “Notice of Opportunity to Submit an Offer to Purchase” to qualified entities that agree to preserve the long-term affordability if they should acquire at-risk projects at least one year before the sale or expiration of use restrictions. Qualified entities have first right of refusal for acquiring at-risk units. Qualified entities are nonprofit or for-profit organizations with the legal and managerial capacity to acquire and manage at-risk properties that agree to maintain the long-term affordability of projects. The following is a list of qualified entities from HCD for Stanislaus County and the surrounding area:
▪ ACLC, Inc
▪ Self-Help Enterprises
▪ Modesto Redevelopment Successor Agency
▪ Stanislaus County Regional Housing Authority
▪ ROEM Development Corporation
▪ Volunteers of America National Services
▪ Stanislaus County Affordable Housing Corporation
▪ Stanislaus Equity Partners
▪ EAH, Inc
▪ Center for Human Services
▪ Visionary Home Builders
▪ R.H. Developers, Inc
▪ Self Help Enterprises, Inc
Inventory of At-Risk Units
Per Government Code Section 65863.10, assisted housing developments are defined as multifamily, rental housing complexes that receive government assistance under any of the specified federal, state, and/or local programs.6There are approximately 2,092 assisted affordable housing units in Modesto and, as of December 2022, 19 units are under construction.

The expiration dates for the five affordable housing projects that may be at risk of being converted to market-rate before 2031 is shown in Table 32. Should the units expire during the 6 th Cycle, the City will ensure that owners are contacted and provided advanced notice to 6 HCD Building Blocks, https://www.hcd.ca.gov/assisted-housing-developments-at-risk-of-conversion #20..
- 1036 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 71
tenants through Program C - 1: Preservation and Monitoring of Units At Risk of Converting to Market Rate.

Table 32: Units At Risk of Conversion
Project Name Address Assistance
Received
Number of
Units
Conversion
Date
Conant Place 3109 Conant Place HOME 80 2024
Sherwood Manor 733 Maze Blvd HOME/RAHF 21 2024
1005 Maze Blvd. 1005 Maze Blvd HOME/CDBG 3 2028
Randazzo Avenue Multiple on
Randazzo Avenue NSP 24 2029
Pine Meadows 608 E. Granger HOME 36 2074
Ashwood Village
Apartments 2800 Rumble Road LIHTC/CalHFA 119 2037
Parkview Christian
Apartments 3112 Napier Dr HUD 60 2025*
Total 343
Source: City of Modesto
*This is not City funded, but subject to HUD directly. The agreements do not provide a termination date for the affordability and have not been reconveyed on the property.

Preservation Options
There are a total of 188 units at-risk of converting to market rate within the next eight years.

Preservation of at-risk units can be accomplished in a variety of ways, including provision of rental subsidies to tenants, facilitation of the transfer of units to nonprofit organizations or purchase of similar replacement units by nonprofit organizations, purchase of the affordability covenant, and new construction of replacement units.

A variety of programs exist to assist cities to acquire, replace, or subsidize at-risk affordable housing units. The following summarizes financial resources available to the City of Modesto.

Replacement Costs
The California Tax Credit Allocation Committee’s 2020 report provides estimates and data on the cost of building assisted units. It estimates that the average cost of an assisted unit in the State of California is $439,827.60.

Table 33 summarizes the estimated replacement costs per unit using construction cost estimates from the UC Berkeley Terner Center and average unit sizes in the City of Modesto from Apartment Finder. Combined, they provide an estimate for replacement costs by unit size specific to Modesto. It ranges from $252,700 for a one-bedroom unit to $421,420 for a #20..
- 1037 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 72
three-bedroom unit. These replacement cost estimates use data from 2018. As such the replacement costs are likely to be higher than those shown here as costs have been steadily rising since 2018 and have not been adjusted for inflation.

Table 33: Replacement Cost
Unit Size Construction Cost per
Square Foot1
Average Square Foot/
Unit2
Replacement Cost per
Unit
1 bedroom $380 665 $252,700
2 bedroom $380 899 $341,620
3 bedroom $380 1,109 $421,420
Sources:
1 UC Berkeley Terner Center, 2020, The Hard Costs of Construction: Recent Trends in Labor and Materials Costs for Apartment Buildings in California, 15. https://ternercenter.berkeley.edu/wpcontent/uploads/2020/08/Hard_Construction_Costs_March_2020.pdf. 2 ApartmentFinder.com, https://www.apartmentfinder.com/California/Modesto-Apartments, accessed December 8, 2022.

Preservation Costs
The costs associated with preserving the affordability of the units at risk of losing rent restriction in the next 10 years were derived from the only example of an at risk acquisition/rehabilitation project in Modesto. In 2019 the rehabilitation cost per unit to preserve the Cameron Villa Apartments was $63,056, this data was collected from the California Tax Credit Allocation Committee (TCAC) financed projects, and excludes costs associated with land acquisition, soft costs, permanent financing, and syndication.

Given the projected number of at-risk units in the period of 2023 to 2031 (188), Table 34 shows the preservation cost that would be required to preserve all at-risk units from expiration based on the 2019 Cameron Villa Apartments case study.

Table 34: Estimated Total Cost to Preserve At-Risk Units, 2019 Method of Preserving Existing
Unit’s Affordability
Rehabilitation/
Construction
# of At-Risk
Units
Cost to
Preserve
Rehabilitation of Existing Affordable
Units $63,056 188 $11,854,528
Transfer of Ownership
Transfer of ownership from a private owner to a nonprofit housing organization is another potential way to preserve at-risk units. However, all of the at-risk units within Modesto identified in this analysis are already nonprofit owned. #20..
- 1038 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 73
Extension of Affordability Covenant
In some cases, affordability can be preserved by providing financial incentives to the project owner to maintain the affordability of the project.

Rent Subsidy
Tenant-based subsidies could be used to preserve the affordability of housing. The Stanislaus Regional Housing Authority and local nonprofit agencies provide Section 8 Housing Choice Vouchers to lower-income households. These agencies could request funding form the City to provide vouchers for residents if additional sources of revenue were available.

In addition, the City of Modesto is including Program C - 1 to ensure the monitoring and preservation of affordable units in the City.

Federal Programs
Community Development Block Grant (CDBG) – CDBG funds are awarded to cities on a formula basis for housing activities. The primary objective of the CDBG program is the development of viable communities through the provision of decent housing, a suitable living environment, and economic opportunity for principally low- and moderate-income persons.

CDBG funds can be used for housing acquisition, rehabilitation, economic development, and public services.

Continuum of Care (CoC) – COC funding is designed to promote a community wide commitment to the goal of ending homelessness; to provide funding for efforts by non-profit organizations, local governments, instrumentalities of state and local governments, Indian Tribes, tribally designated housing entities, and public housing agencies, to quickly rehouse homeless individuals, families, persons fleeing domestic violence, and youth. The funding is used to assist with minimalizing the trauma and dislocation caused by homelessness, to promote access to and effective utilization of mainstream programs, while optimizing selfsufficiency for those experiencing homelessness.

HOME Investment Partnership – HOME is a flexible grant program and funds are awarded on a formula basis for housing activities. HOME considers local market conditions, inadequate housing, poverty, and housing production costs. HOME funding is provided to jurisdictions to assist rental housing or homeownership through acquisition, construction, reconstruction, and/or rehabilitation of affordable housing.

Section 8 Rental Assistance / Housing Vouchers Program – The Section 8 Rental Assistance / Housing Vouchers Program provides rental assistance payments to owners of private, market-rate units on behalf of very low-income tenants.

Section 811/202 Program – Nonprofit and consumer cooperatives can receive no interest capital advances from HUD under the Section 202 program for the construction of very lowincome rental housing for seniors and persons with disabilities. These funds can be used in #20..
- 1039 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 74
conjunction with Section 811, which can be used to develop group homes, independent living facilities, and immediate care facilities. Eligible activities include acquisition, rehabilitation, new construction, and rental assistance.

State Programs
Permanent Local Housing Allocation (PLHA) – Provides funding to local governments in California for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities.

Homekey – Homekey is an opportunity for state, regional, and local public entities to develop a broad range of housing types, including but not limited to hotels, motels, hostels, singlefamily homes and multifamily apartments, adult residential facilities, and manufactured housing, and to convert commercial properties and other existing buildings to Permanent or Interim Housing for the Target Population awarded by the state on project basis.

California Housing Finance Agency (CalHFA) Multifamily Programs – CalHFA’s Multifamily Programs provide permanent financing for the acquisition, rehabilitation, and preservation or new construction of rental housing that includes affordable rents for low- and moderateincome families and individuals. One of the programs is the Preservation Acquisition Finance Program, which is designed to facilitate the acquisition of at-risk affordable housing developments and provide low-cost funding to preserve affordability.

Low-Income Housing Tax Credit (LIHTC) – This program provides tax credits to individuals and corporations that invest in low-income rental housing. The LIHTC program creates affordable housing opportunities when the developer of a project “sells” the tax credits to an investor(s) who contributes equity to the development in exchange for an ownership position in the project.

California Community Reinvestment Corporation – The California Community Reinvestment Corporation is a multifamily affordable housing lender whose mission is to increase the availability of affordable housing for low-income families, seniors, and residents with special needs by facilitating private capital flow from its investors for debt and equity to developers of affordable housing. Eligible activities include new construction, rehabilitation, and acquisition of properties.

Local Programs
As identified in the 2023 – 2024 Annual Action Plan draft7, $929,656 of HOME – Public Federal funding has been allocated for expected uses of rental housing rehabilitation and rental housing new construction.
7 City of Modesto 2023-2024 Annual Action Plan Draft.
https://www.modestogov.com/ArchiveCenter/ViewFile/Item/3774 Accessed May 30, 2023. #20..
- 1040 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 75
The City is currently developing a Housing Trust Fund utilizing $500,000 of American Rescue Plan Act funds. Anticipated uses for the Housing Trust Fund may include, but are not limited to, new construction, acquisition and/or rehabilitation, and subsidy, or other means to assist other governmental agencies, nonprofit groups and private organizations or individuals in creating or maintaining affordable housing.

Preservation and Monitoring of Affordable Units
Through the Community Development Division, the City monitors the list of affordable housing units and their eligibility to convert to market-rate housing. Constant monitoring lets the City anticipate the time frame by which affordability covenants would expire, allowing the City to implement various resources to ensure the continued affordability of the housing units.

Through the Consolidated Annual Performance and Evaluation Report (CAPER), the City annually checks with the regional HUD division on the status of rental multifamily housing units that are funded with federal subsidies. To monitor for-sale affordable units, the City’s BMR Program Administrator annually sends a “Below Market-Rate” pamphlet in English and Spanish to all property owners under a resale restriction program. The pamphlet reminds the owners that their home is currently in the program and directs them to contact City staff when they plan to sell, refinance, or transfer ownership of their property.

Program C - 1 is included to ensure the preservation of affordable units in the City. Through this program, the City will work with property owners, tenants, and nonprofit organizations to assist in the nonprofit acquisition of at risk projects to ensure their long term affordability.

Quantified Objectives
Housing Element law requires that cities establish a maximum number of units that can be converted over the planning period. During the planning period, 188 rent-restricted housing units are at risk of being converted to market rate (see Table 32).

Special Housing Needs
Due to special needs or circumstances related to income, family or household characteristics, age, and disability, certain groups have historically had greater difficulties finding quality affordable housing. They also often have a higher prevalence of special circumstances leading to housing problems such as lower incomes, higher housing cost burdens, and higher rates of overcrowding. State law therefore requires evaluation of housing needs of these groups, in particular senior households, single-parent households, persons with physical, mental and developmental disabilities, large households, farmworkers, and homeless individuals.

The Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and the HOME Investment Partnership (HOME), provided operating funds for many local programs that provided affordable housing rehabilitation, emergency rental assistance, affordable #20..
- 1041 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 76
housing, and homeless case management for the special needs populations in the City. The following are a few of those programs.
▪ The “Camp2Home” program which is designed to bring homeless individuals out of the cycle of homelessness through job readiness, case management, job placement, and housing placement.
▪ Homeless Engagement Street Outreach mapping through Camp2Home outreach has helped allocate City resources for strategic engagement through determining gaps in services.
▪ VOLT Scholarship Program assisted 20 individuals with education in an industry-led advanced manufacturing training center.

Table 35 provides an overview of the special needs populations within the City and each group is discussed in further detail in the following sections.

Table 35: Overview of Special Needs Groups, Modesto, 2020 Special Needs Group # of People % of Population
Persons with a Disability 16,392 7.7%
Persons Experiencing Homelessness 1,433 0.7%
Farmworkers 12,713 5.5%
Special Needs Group # of Households % of Households
Householders Age 65+ 17,365 24.4%
Large Households 10,928 15.4%
Female-Headed Households 11,348 15.9%
Extremely Low-Income Households 16,615 22.9%
Source: US Census Bureau, American Community Survey 5-Year Data (2016–2020) and HUD CHAS Data (2015–2019).

Table 36 shows the services currently providing support to the special needs populations in Modesto. Services and housing options for seniors include the Modesto Senior Center as well as 10 varying apartment developments. Four of the housing options shown below service both elderly persons and persons with disabilities of all ages. One of the apartment complexes provides housing for extremely low-income households, and the development includes 3- bedroom units for large families. Table 45 details homeless facilities available in the City.

Table 36: Inventory of Services for Special Needs Populations Services/
Programs
Population Served Details # of
Units
Modesto Senior
Center Recreation Elderly Persons
o Hot meals are served at this facility every Monday
through Thursday from 11:00 a.m. to noon. Variety
of in-person and virtual programs during the week.

N/A
#20..
- 1042 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 77
Services/
Programs
Population Served Details # of
Units
Conant Place Elderly Persons,
o Seniors 62 and older; Disabled 55 and older
o 1 and 2 Bedroom
o Section 8 accepted
20 Downey Terrace
Senior Apartments Elderly Persons,
o Seniors 62 and older; Disabled 55 and older
o 1 Bedroom
o Section 8 accepted
12 El Casa Verde Extremely Low
Income
o All ages
o Studio, 1, 2, and 3 Bedroom
o Extremely Low-income (30% of AMI)
142
Houser Glen
Senior Apartments
Elderly Persons,
Persons with
Disabilities
o Seniors 55 and older; Disabled 18 and older
o 1 Bedroom
o Section 8 accepted
76 La Loma Senior
Apartments Elderly Persons,
o Seniors 55 and older; Disabled 55 and older
o Studios and 1 Bedroom
o Section 8 accepted
45 Parkview Christian
Estates
Elderly Persons,
Persons with
Disabilities
o Seniors 62 and older; Mobility disability 18 and
older Studios,
o 1 and 2 Bedroom
o Accessible units available
o Extremely Low-income (30% of AMI)
o Section 8 accepted
o Mandatory Lunch Plan Additional cost $190
99 Sherwood Manor
Senior Apartments
Elderly Persons,
Persons with
Disabilities
o Seniors 55 and older; Disabled 18 and older
o 1 and 2 Bedroom
o Tiered rent
o Section 8 accepted
38 Spartan Manor
Senior Apartments Elderly Persons,
o Seniors 55 and older; Disabled 55 and older
o 1 Bedroom
o Section 8 accepted
60 Tower Park Senior
Apartments Elderly Persons,
o Senior 62 and older; Disabled 62 and older
o 1 Bedroom
o Tiered rent
o Section 8 accepted
49 Vinewood
Apartments
Elderly Persons,
Persons with
Disabilities
o Seniors 62 and older; Disabled 18 and older
o 1 Bedroom
o Extremely Low-income (30% of AMI)
75 Palm Valley
Apartments
Homeless
/Disability
o Permanent Supportive Housing
o Low Income (80% of AMI)
39 Kansas House Homeless o Permanent Supportive Housing 103 #20..
- 1043 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 78
Services/
Programs
Population Served Details # of
Units
o No income Limits
522 E. Granger Homeless
o Permanent Supportive Housing
o Low Income (80% of AMI)
5 River Vista Family
o Ownership
o Low Income (80% of AMI)
4 Edward Estates Family
o Ownership
o Low Income (80% of AMI)
2 Archway
Commons Family, Homeless
o Rental Family
o Low Income (30%-80% of AMI)
150
Source: City of Modesto
Farmworkers
Traditionally, agricultural workers are defined as persons whose primary incomes are earned through permanent or seasonal agricultural labor. The 2021 American Community Survey (ACS) found that approximately 2,099 Modesto residents were employed in the agriculture, forestry, fishing and hunting, and mining industry. This equates to about 2 percent of all employed individuals in the City over 16 years old.

Among other issues, farmworkers typically face low wages, leading to high rates of housing cost burden for farm working families. According to the Bureau of Labor Statistics, California’s mean farmworker wages range from $30,370 to $42,480 per year and the median wage in 2022 for Modesto farmworkers was between 33,290 and $36,170 (see Table 37).

Table 37: Modesto Farmworker Wages
Occupation Employment(1) Hourly median
wage
Annual
median wage(2)
Farmworkers and Laborers, Crop,
Nursery, and Greenhouse 5,860 $16.00 $33,290
Farmworkers, Farm, Ranch, and
Aquacultural Animals 120 $17.39 $36,170
(1)Estimates for detailed occupations do not sum to the totals because the totals include occupations not shown separately. Estimates do not include self-employed workers. (May, 2022) (2)Annual wages have been calculated by multiplying the corresponding hourly wage by 2,080 hours.

Table 38 shows the 2012 to 2017 estimates of farmworkers for Stanislaus County, as reported in the US Department of Agriculture’s Census of Agriculture. As indicated, there were an estimated 12,713 farmworkers in the County which was a 13.2 percent decrease of farmworkers in the County from 2012. Similarly, the number of farms employing workers decreased 9.8 percent. Additionally, during the same period the number of workers working #20..
- 1044 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 79
150 days or more increased by 6 percent which tells indicates there are less farmworkers working more days.

Table 38: Number of Farmworkers and Farms, Stanislaus County, 2017 Farm/Worker
Type Farmworkers % Change Farms % Change
2012 2017 2012 2017
Farm Size
Farms with less
than 10
employees
4,474 3,944 -11.8% 1,409 1,274 -9.5%
Farms with 10
or more
employees
10,183 8,769 -13.8% 315 281 -10.7%
Total 14,657 12,713 -13.2% 1,724 1,555 -9.8%
Length of Employment of Workers
Workers
working 150
days or more
5,928 6,284 6.0% -
Workers
working less
than 150 days
8,729 6,429 -26.3% -
Source: 2012 and 2017 Census of Agriculture, Table 7, Stanislaus County, https://www.nass.usda.gov/Quick_Stats/CDQT/chapter/2/table/7/state/CA/county/099/year/2017.

The Stanislaus Regional Housing Authority operates four seasonal migrant farmworker housing centers in the County, with a total of 318 rental units. There is one housing center each in Patterson and in Empire. The Empire Migrant center is located just outside of Modesto and is used as a cold-weather shelter for homeless families. It consists of 90 single family dwelling units that are used for farmworker housing from April to October each year.

According to a 2023 study by the UC Merced Community and Labor Center, farmworkers across California are facing serious health challenges. The study suggests that farmworkers generally experience substandard housing (e.g., older homes, apartments, mobile homes, motels, garages, or other similar spaces), often requiring repairs such as new roofs, plumbing, heating and cooling systems, and termite clean-up. Poor ventilation and crowded spaces put farmworkers at increased risk for respiratory illnesses as well. The City operates a Homeowner Repair Assistance Program (C - 3) that provides households a forgivable grant up to $20,000 to repair or eliminate critical health and safety hazard conditions in their homes, as well as making homes more accessible for persons with a disability. Farmworker housing is eligible for the program. As a part of Program C - 3, the City is expanding promotion efforts to target farmworkers and increase the percentage of program participants that are farmworker #20..
- 1045 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 80
households. Additionally, the City has pursued potential partnerships with Visionary Home Builders who have significant experience in USDA grants and the State Joe Serna, Jr.

Farmworker Housing Grant Program (FWHG).

The City of Modesto launched its Rental Housing Safety Program in September 2023, which aim to improve the quality of rental housing in the City. Additionally, Program D - 9 is included to create additional opportunities for farmworker housing development.

Large Households
State housing law defines large households as those consisting of five or more members. Large households are considered a special needs group because it may be difficult for these households to secure adequately sized, affordable housing. In order to balance affordable housing along with other financial responsibilities, large households tend to reside in smaller dwelling units, which may lead to overcrowding.

In 2020, approximately 15 percent (10,928) of Modesto’s 71,113 households were considered large households. This is a similar proportion as seen countywide. Of those large households, 54 percent (5,933) lived in owner-occupied units, while 46 percent (4,995) lived in rental housing. Between 2010 and 2020, the percentage of large households in the City remained unchanged as did the distribution between renters and homeowners of large households. In 2010, approximately 15 percent (10,512) of Modesto’s 68,367 households were considered large households. Of those large households in 2010, 8 percent (5,902) lived in owner-occupied units, while 6 percent (4,610) lived in rental housing.

In Modesto, the proportion of large households that are owners (54 percent) is comparable to the general proportion of ownership households citywide (59 percent). There is a slightly lower proportion of large households owning their home compared to Stanislaus County (57 percent).
#20..
- 1046 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 81
Table 39: Large Households by Tenure, 2020
Household Type (Size) Owner-Occupied
Households
Renter-Occupied
Households
Total
Households
Modesto
Five-person Household 3,418 54% 2,888 46% 6,306 9%
Six-person Household 1,411 53% 1,244 47% 2,655 4%
Seven-or-more-person
Household 1,104 56% 863 44% 1,967 3%
Total Large Households 5,933 54% 4,995 46% 10,928 15%
Total of All Households 39,613 59% 31,500 41% 71,113 100% Stanislaus County
Five-person Household 9,513 56% 7,493 44% 17,006 10%
Six-person Household 4,427 55% 3,612 45% 8,039 5%
Seven-or-more-person
Household 3,494 63% 2,036 37% 5,530 3%
Total Large Households 17,434 57% 13,141 43% 30,575 17% Total of All Households 102,675 62% 72,151 38% 174,826 100% Source: US Census Bureau, American Community Survey 5-Year Data (2016–2020), Table B25009.

Based on HUD’s 2015-2019 CHAS data shown in Table 40, 43.9 percent of large households in Modesto are in one of the lower-income categories. Stanislaus County had a smaller percentage of large households within lower-income categories, at 40.8 percent. The City is including Program A - 12 to specifically consider additional incentives for households with special housing needs, including large households and extremely low-income households.

Table 40: Income Distribution, Large Households
Income
Modesto Stanislaus County
Number % Number %
Less than or equal to 30% of HAMFI 1,790 9.7% 4,100 7.7% Greater than 30% but less than or equal to 50% of HAMFI 2,770 15.0% 7,180 13.4% Greater than 50% but less than or equal to 80% of HAMFI 3,555 19.2% 10,500 19.7% Greater than 80% but less than or equal to 100% of HAMFI 1,900 10.3% 6,625 12.4% Greater than 100% of HAMFI 8,505 46.0% 25,010 46.8%
Total 18,520 100% 53,415 100%
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2015-2019 data, Table 7 Large households tend to have more difficulty purchasing housing due to the financial constraints of supporting a larger household and because there is limited housing stock of #20..
- 1047 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 82
adequate size. Additionally, rental units with three or more bedrooms are not common, and large affordable rental units are even less common. This can lead to overcrowded housing conditions.

Table 41 summarizes housing problems experienced by large households in Modesto by tenure. As previously noted, the types of housing problems include overcrowding, overpayment (cost burden), and households lacking kitchen or plumbing facilitates. CHAS 2015–2019 data indicates that 53 percent of large households experience at least one of the housing problems. Analyzing by tenure, 57 percent of large renter households and 47.5 percent of large owner households have at least one form of housing problem.

As of 2020, 19 percent of the City’s housing stock has four or more bedrooms (see Table 19).

This equates to 13,511 housing units with four or more bedrooms to serve the estimated 10,928 large households that require at least four bedrooms to avoid over-crowded conditions. However, these figures do not consider whether it is actually large households who occupy these housing units. Table 41 shows that 19 percent of large households in Modesto experience a cost burden and almost 5 percent experience a severe cost burden. Large household homeowners have twice the rate of overpayment as renters, at 27 percent and 12 percent, respectively.

Table 41: Large Households by Housing Problems and Tenure, Modesto, 2019 Household Type Large-Household
Renters
Large-Household
Owners
Total Large
Households
Total Households 16,210 13,825 30,035
Large Households with Any
Housing Problem1
9,295 57.3% 6,570 47.5% 15,865 52.8%
Large Households with Cost
Burden (> 30%)2
1,965 12.1% 3,760 27.2% 5,725 19.1%
Large Households with Severe
Cost Burden (> 50%) 1,165 7.2% 260 1.9% 1,425 4.7%
Source: HUD Comprehensive Housing Affordability Strategy (CHAS), 2015-2019 data, Table 4 and Table 7.

Notes: Data presented in this table are based on special tabulations from sample Census data. The number of households in each category usually deviates slightly from the 100 percent total due to the need to extrapolate sample data out to total households. Interpretations of these data should focus on the proportion of households in need of assistance rather than on precise numbers.
1The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30 percent.
2Cost burden occurs when housing costs exceed 30 percent of household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs" which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. Severe cost burden occurs when housing costs exceed 50 percent of household income.
#20..
- 1048 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 83
Female-Headed Households
Female-headed households who do not have a spouse present are a special needs group because they tend to experience comparatively low rates of homeownership, lower incomes, and high poverty rates. Female-headed households are often further characterized by whether they have children in the household.

As shown in Figure 10, the largest proportion of Female-headed households in Modesto are living alone at 48 percent, while Female-headed households with Relatives, No Own Children Under 18 years make up 26 percent of all Female-headed households.

Table 42 shows the number of female-headed households by tenure and presence of children.

In 2020, 16 percent of households in Modesto were female-headed households. This is slightly higher than the County where female-headed households comprise 14 percent of all households. Female-headed households in Modesto have a higher rate of homeownership than those in the County (10.9 percent and 6.1 percent, respectively) and female-headed households with children have higher homeownership rates than the County; 3.4 percent of female-headed households with children own their own home in Modesto compared to 1.9 percent in the County. Of the 11,348 female-headed households in Modesto, 5,713 had children under 18 and 5,635 had no children, nearly identical for both populations.

Figure 8: Female-Headed Households
Source: U.S. Census Bureau, ACS16-20 (5-year Estimates), Table B11012

48.1% 45.7% 50.2%

21.6% 23.0% 17.9%

26.2% 26.8% 25.0%

4.0% 4.5% 6.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
City of Modesto Stanislaus County California
With Only Nonrelatives Present
With Relatives, No Own Children
Under 18 Years
With Own Children Under 18
Years
Living Alone
#20..
- 1049 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 84
Table 42: Female-Headed Households by Tenure, Modesto, 2020 Household Type Owner- Occupied
Households
Renter- Occupied
Households Total % of Total Households
Total Households 39,613 31,500 71,113
Female householder, no
spouse present, with
children under 18
1,353 3.4% 4,360 13.8% 5,713 8.0%
Female householder, no
spouse present, without
children
2,954 7.5% 2,681 8.5% 5,635 7.9%
Total Female-Headed
Households 4,307 10.9% 7,041 22.4% 11,348 16.0%
Source: US Census Bureau, American Community Survey 5-Year Data (2016–2020), Table B25115.

In Modesto, 54.9 percent of households below the poverty line are female-headed households (4,384 households). Of those 4,384 households, 26 percent have children under age 18 present and 28.9 percent are without children. When compared to Stanislaus County, Modesto has a higher percentage of female-headed households below the poverty line (4.7 percent and 6.2 percent of households respectively).8
Table 43: Female-Headed Households by Poverty Status, Modesto, 2020 Household Type Income Below
Poverty Level
Income Above
Poverty Level Total % of Total Households
Total Households 7,979 63,134 71,113
Female householder, no
spouse present, with
children under 18
2,075 26.0% 9,273 14.7% 11,348 16.0%
Female householder, no
spouse present, without
children
2,309 28.9% 9,312 14.7% 11,621 16.3%
Total Female-Headed
Households 4,384 54.9% 18,585 29.4% 22,969 32.3%
Source: US Census Bureau, American Community Survey 5-Year Data (2016–2020), Table B17017.

Modesto currently has a number of existing programs and services available to female-headed households including Haven Women’s Center of Stanislaus County and Mission Emergency Shelter which provide temporary shelter and support services for woman and children. 8 US Census Bureau, American Community Survey 5-year Data (2016–2020), Table B17010. #20..
- 1050 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 85
Persons Experiencing Homelessness
Data on homelessness in Stanislaus County is based on the 2023 Point-in-Time Count (PITC), information provided to HUD by the Stanislaus Community System of Care (CSOC), and the Stanislaus Homeless Alliance (SHA). The PITC provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. A follow-up survey sampling of unsheltered and sheltered individuals is conducted two weeks following the count.

The count was conducted on January 26, 2023.

Stanislaus County had an estimated homeless count of 2,091, 949 of which were unsheltered.

Of this homeless population, 231 were children under the age of 18. There were 1,642 homeless persons surveyed in Modesto, 441 of which were unsheltered. Modesto’s homeless population accounts for 79 percent of all homeless persons in the County. Modesto’s larger share of the homeless population reflects its larger share of the total county populations (approximately 40 percent) and the availability of and access to more resources. Table 44 shows the change in the sheltered/unsheltered population by city in Stanislaus County between 2020 and 2023.

Table 44: Regional Homeless Population
Homeless Population 2020 %
Change 2022 % Change 2023 % Total
Modesto 1,592 -10.0% 1,433 14.6% 1,642 78.5%
Turlock 232 -9.1% 211 10.4% 233 11.1%
Patterson 78 -29.5% 55 21.8% 67 3.2%
Empire 77 -9.1% 70 8.6% 76 3.6%
Oakdale 36 -27.8% 26 -15.4% 22 1.1%
Ceres 29 -48.3% 15 13.3% 17 0.8%
Riverbank 26 -30.8% 18 0.0% 18 0.9%
Newman 21 -42.9% 12 -50.0% 6 0.3%
Denair 7 - - - - -
Waterford 6 66.7% 10 -60.0% 4 0.2%
Salida 2 - - - - -
Hughson 1 0.0% 1 200.0% 3 0.1%
Hickman 0 - - - - -
Keyes 0 - 4 -25.0% 3 0.1%
Crows Landing - - 1 - - -
Westley - - 1 - - -
#20..
- 1051 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 86
Homeless Population 2020 %
Change 2022 % Change 2023 % Total
Stanislaus County Total 2,107 -11.9% 1,857 12.6% 2,091 100.0% Source: 2020 & 2023 Stanislaus County Homeless Point-in-Time Count Executive Summary.

Table 45 lists emergency shelters and transitional housing in Modesto. There are fourteen facilities with 931 total beds for persons experiencing homelessness in the City. Modesto is the county seat and largest City in Stanislaus County; therefore, Modesto is the central point for many supportive services for homeless individuals. The City funds shelter activities through CDBG Public Services and ESG funds. The City partners with shelter providers in Modesto like The Salvation Army to provide emergency shelter and low barrier shelter services to homeless individuals. The Access Center Emergency Shelter (ACES) will provide low barrier (drug and alcohol testing are not required to enter) to reduce barriers for individuals choosing to enter an emergency shelter. ACES is designed to allow homeless individuals to enter with pets, partners, and possessions, which are often-cited impediments individuals have when entering a homeless shelter.
#20..
- 1052 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 87
Table 45: Homeless Facilities in Modesto
Facility Name Type of Facility Target Population Number of Shelter Beds
Bennett Place Shelter
Serious mental illness
and Serious emotional
disturbance
18 Center for Human
Services Emergency shelter Individuals 6
Children’s Crisis Center Emergency shelter Abused, neglected and high risk children 35
Community Housing &
Shelter Services (CHSS) Emergency shelter Individuals 180 Empire Migrant Center* Cold weather shelter Families 90 Family Promise Emergency shelter Families 14
Haven Women’s Center Emergency shelter
Woman and their
children fleeing
domestic or sexual
violence
13 Modesto Gospel Mission Emergency shelter Individuals and families 135 Salvation Army – ACES
Shelter Emergency shelter Individuals 182
Salvation Army –
Berberian Shelter Emergency shelter Individuals 180
Turning Point Emergency shelter Families 11
Women's Rest Shelter Individuals 5
Youth Navigation Center
of Stanislaus County –
Low Barrier Shelter
Transitional housing,
Crisis/Drop-in and Shelter
and Low-Barrier Shelter
Young adults ages 13 -
24 48
Total 896
* Outside of Modesto City limits
Source: Modesto Annual Action Plan FY 2022-2023
Disabilities
People living with disabilities may have a wide range of housing needs, depending on the type and severity of their disability. Housing affordability is a major concern for individuals with disabilities, particularly for those whose disability impacts their income earning potential.

Design accommodations to navigate within the home and to/from the residence are another #20..
- 1053 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 88
challenge for persons with disabilities. Access often requires specially designed dwelling units that include features such as wider doorways, ramps in place of stairs, and elevators for units with multiple stories. These modifications have the potential to be expensive and are not usually found in older dwelling units. Ongoing enforcement of the City's Building Code ensures that new construction will be accessible to disabled persons, though all units may not have all the features needed by specific individuals. Additionally, housing with adequate access to public facilities and public transit are important for this special needs group.

The US Census Bureau categorizes disabilities as follows:
▪ Hearing difficulty: deaf or has serious difficulty hearing ▪ Vision difficulty: blind or has serious difficulty seeing even with glasses ▪ Cognitive difficulty: has serious difficulty concentrating, remembering, or making decisions
▪ Ambulatory difficulty: has serious difficulty walking or climbing stairs ▪ Self-care difficulty: has difficulty dressing or bathing ▪ Independent living difficulty: has difficulty doing errands alone, such as visiting a doctor’s office or shopping
Based on the 2016–2020 American Community Survey, there are 30,664 individuals, or 14.4 percent of the population, living with at least one form of disability in Modesto. This is slightly higher than the County where 13 percent of the population has a disability.9 Ambulatory issues are the highest reported disability countywide. A large population with walking difficulty creates a need for single-story housing, elevators, transit access, wheelchair access, larger homes for live-in help, and proximity to health facilities. For many in need of live-in help or living assistance, accessory dwelling units (ADUs) may serve as a caregiver unit. The City is including programs to incentivize, encourage, and facilitate ADU production in the City including A - 9: ADU Ordinance Updates, Tracking and Monitoring, A - 10: ADU Incentives, and F - 2: ADU, JADU, and SB 9 Education.

Further information about the type of disabilities residents experience and how it compares to Stanislaus County is illustrated in Figure 9.
9 Source: US Census Bureau, American Community Survey 5-Year Data (2016–2020), Table C18108 #20..
- 1054 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 89
Figure 9: Disability by Type
Source: US Census Bureau, American Community Survey 5-Year Data (2016–2020), Table S1810.

Note: These disabilities are counted separately and are not mutually exclusive, as an individual may report more than one disability. These counts should not be summed.

As shown in Figure 10, 18 percent (or 5,077) of the City’s 28,787 seniors live with at least one disability and 25 percent (or 7,312) live with at least two types of disability. This is nearly identical to Stanislaus County’s senior population with disabilities, 17 percent with one disability and 25 percent of seniors have two disabilities.

Figure 10: Disability by Number of Types by Age
Source: U.S. Census Bureau, ACS16-20 (5-year Estimates), Table C18108 31%
20%
38%
52%
23%
44%
31%
21%
38%
51%
21%
40%
0%
10%
20%
30%
40%
50%
60%
Hearing Difficulty Vision Difficulty Cognitive Difficulty Ambulatory Difficulty
Self-Care Difficulty Independent Living
Difficulty
City of Modesto Stanislaus County
3% 1%
6% 7%
18%
25%
3% 1%
6% 5%
17%
25%
0%
5%
10%
15%
20%
25%
30%
Under 18 Years -
One Type
Under 18 Years -
Two or More
Types
18 to 64 Years -
One Type
18 to 64 Years -
Two or More
Types
65 Years and
Older - One
Type
65 Years and
Older - Two or
More Types
City of Modesto Stanislaus County
#20..
- 1055 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 90
A subgroup of disabled residents is those who are developmentally disabled. Housing Element law mandates that an analysis of special needs of disabled persons, including persons with developmental disabilities, be included in Housing Elements. Many developmentally disabled persons are able to live and work independently. However, more severely disabled individuals require a group living environment with supervision, or an institutional environment with medical attention and physical therapy. When developmental disabilities exist before adulthood, the first housing issue for that individual is the transition from living with a parent/guardian as a child to an appropriate level of independence as an adult.

As shown in Table 46, individuals with developmental disabilities largely reside with a parent, family member, or guardian and an almost equal amount of individuals live in independent/supported living or in a community care facility.

Table 46: Population with Developmental Disabilities by Residence Type of Residence City of Modesto Stanislaus County
Home of Parent /Family /Guardian 2,612 5,049
Independent /Supported Living 266 394
Community Care Facility 236 303
Intermediate Care Facility 5 10
Foster /Family Home 47 108
Other 30 60
Source: DDS Quarterly Consumer Report, December 2021
The California Department of Developmental Services (DDS) currently provides communitybased services through 21 community-based nonprofit corporations known as regional centers. The regional centers serve as a local resource to help find and access services and support available to individuals and families once eligibility is determined. The Valley Mountain Regional Center provides service to developmentally disabled individuals throughout Stanislaus and San Joaquin Counties. According to the DDS, as of December 2021, the Valley Mountain Regional Center served 16,392 residents. Table 47 displays the breakdown of type of developmental disabilities served at the center. The largest populations served are those with an intellectual disability (42 percent) followed by autism (36 percent). #20..
- 1056 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 91
Table 47: Valley Mountain Regional Center, Developmental Disabilities by Type, 2019 Developmental Disability Individuals Percent
Autism 5,901 36%
Cerebral Palsy 1,311 8%
Epilepsy 1,803 11%
Intellectual Disability 6,884 42%
Other 493 10%
Total1 16,392 107%
Source: California Department of Developmental Service (December 2021), Consumers by Diagnosis and Regional Center. 1 People may have more than one type of disability, so individual disability categories will not sum to total.

A number of housing types are appropriate for people living with a developmental disability, including rent-subsidized homes, licensed single-family homes, and homes available through the Housing Choice Voucher program. The design of housing accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the considerations that are important in serving this group. Incorporating barrier-free designs in all new multifamily housing, as required by California and federal fair housing laws, along with affordability, is especially important in housing for disabled residents.

The City works closely with the Stanislaus County Department of Behavioral Health and Recovery Services (BHRS) in the system delivery of housing services. BHRS provides Housing Support Services Program provides an array of support services for individuals facing barriers that include low income, severe mental illness, substance abuse, and other disabling conditions.

Additionally, the City coordinates with the Stanislaus County Community Services Agency (CSA) which is responsible for the administration of multiple housing and homeless programs one of which includes the Housing Disability Advocacy Program (HDAP). As with BHRS, the City partners with housing developers and CSA in the delivery of services and/or affordable housing projects to serve the target populations.

Elderly Persons
The US Census defines persons 65 years of age and older as elderly. Modesto’s elderly population has special housing needs associated with affordability, maintenance, and upkeep of their homes, as well as physical access. Elderly persons are more likely to have fixed incomes and have a substantial portion of their financial resources in non-liquid assets, such as property. They often spend a higher percentage of their income on food, housing, medical care, and personal care comparative to non-elderly persons. Elderly persons may have special needs related to housing location and construction. Because of limited mobility, elderly persons typically need closer access to medical services, shopping, public transit, and other amenities. In terms of housing construction, elderly persons may need ramps, handrails, #20..
- 1057 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 92
elevators, lower cabinets and counters, and special security devices to allow for greater selfprotection. In addition, the elderly may require assistance with housekeeping, maintenance, and repairs to remain in their own homes for as long as possible. Special consideration should be given for recreational and social amenities for the elderly. Resources available to elderly households are listed in Table 36.

According to the 2020 US Census data shown in Table 48, 23 percent of Modesto’s households are headed by one person aged 65 or over. This is slightly less than the 24 percent in Stanislaus County households.

Table 48: Regional Household by Age, 2020
Household Age
Modesto Stanislaus County
Households % Households %
15 to 24 years 1,879 2.6% 5,194 3.0%
25 to 34 years 12,534 17.6% 28,629 16.4%
35 to 64 years 39,335 55.3% 98,791 56.5%
65 to 74 years 10,590 14.9% 24,426 14.0%
75 years and over 6,775 9.5% 17,786 10.2%
Total 71,113 100% 174,826 100%
Source: US Census Bureau, American Community Survey 5-Year Data (2016–2020), Table B25007 As indicated in Table 49, the 2020 median household income for households with a resident aged 65 and older was $46,424 in Modesto and $44,841 in Stanislaus County. This is lower than the citywide median income of $62,182 and countywide median income of $62,873 in 2021. The lower income is likely because fewer elderly persons are working full-time, and most income comes from a fixed income such as Social Security and/or part-time work.

Table 49: Median Household Income for Elderly Households, 2020 Household Age City of Modesto Median Income Stanislaus County Median Income 65 Years and Older $46,424 $44,841
All Households $62,182 $62,873
Source: US Census Bureau, American Community Survey 5-Year Data (2016–2020), Table S1903 Based on HUD’s 2015–2019 CHAS data shown in Table 50, 42 percent of elderly households in Modesto are in one of the lower-income categories. Stanislaus County had a higher percentage of elderly households within the lower income categories, at 57 percent. #20..
- 1058 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 93
Table 50: Income Distribution, Elderly Households, 2019 Income
Modesto Stanislaus County
Number % Number %
Less than or equal to 30% of HAMFI 8,315 11.5% 20,435 8.7% Greater than 30% but less than or equal to 50% of HAMFI 8,770 12.1% 82,675 35.3% Greater than 50% but less than or equal to 80% of HAMFI 13,305 18.4% 31,030 13.2% Greater than 80% of HAMFI 41,950 58.0% 100,330 42.8%
Total 72,340 100% 234,470 100%
Source: US Department of Housing and Urban Development (HUD), CHAS data (2015–2019), Table 5. 1 HUD defines “elderly” as people aged 62 and up. However, the US Census Bureau defines “elderly” as people aged 65 and older.

Table 51 displays the percentage of the elderly population and their disability status. Of people aged 65 and above, 5 percent have one type of disability and 7 percent have two or more disabilities. The County has more than double the percentage of elderly individuals with disabilities at 29.4 percent compared to 12.6 percent in Modesto.

Table 51: Elderly People with Disabilities, 2020
Disability Status # of Elderly People
with a Disability
% of People
Age 65+
# of Elderly People
with a Disability
% of People
Age 65+
Modesto Stanislaus County
With one type of
disability 5,077 5.2% 11,784 12.0%
With two or more
types of disability 7,312 7.4% 17,181 17.4%
Total, Elderly with a
Disability 12,389 12.6% 28,965 29.4%
Source: US Census Bureau, American Community Survey 5-Year Data (2016–2020), Table C18108.

Table 52 summarizes housing problems experienced by elderly households in Modesto.

According to the 2015–2019 CHAS data, 40 percent of all elderly households experience some type of housing problem. This includes 62 percent of renters and 31 percent of owners. For households with at least one person 62 years and older, 70 percent resided in owner-occupied units and nearly 30 percent resided in renter-occupied units. #20..
- 1059 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 94
Table 52: Elderly Households by Housing Problems and Tenure, 2019 Housing Problem Type Elderly Owners Elderly Renters Total (Elderly Households) Total 18,030 7,695 25,725
% with any Housing Problem 31.0% 62.1% 40.3%
% with Cost Burden 38.6% 57.9% 44.4%
% with Severe Cost Burden 26.6% 38.7% 30.2%
Source: 2015–2019 HUD CHAS data, Table 5 and Table 7.

The increasing number of elderly persons in the population is creating more demand for affordable, accessible, and low-maintenance housing. As residents age, they may desire alternatives to single-family units, opting for smaller multifamily units or assisted care living.

Another option for seniors looking to downsize is accessory dwelling units, which could house seniors or their caregivers. The City is including programs to incentivize, encourage, and facilitate ADU production in the City including A - 9: ADU Ordinance Updates, Tracking and Monitoring, A - 10: ADU Incentives, and F - 2: ADU, JADU, and SB 9 Education. Based on the demographic trends, the need for senior housing is considered a high priority.

Extremely Low-Income Housing Needs
Extremely low-income households in Modesto are defined as households with income less than 30 percent of the Stanislaus County AMI. The provisions of Government Code Section 65583 (a)(1) require quantification and analysis of existing and projected housing needs of extremely low-income households. In 2019, 23 percent of Modesto households were within the extremely low-income category. Resources available to extremely low-income households are listed in Table 36.

Table 53 provides a summary of overcrowding rates experienced by extremely low-income households in Modesto compared to other income levels. An overcrowded housing unit is defined by the US Census Bureau as a housing unit occupied by more than one person per room (excluding bathrooms, kitchen, hallway, and closet space). Occupancy by more than 1.5 persons per room constitutes severe overcrowding. Overcrowding can affect public facilities and services, reduce the quality of the physical environment, and create conditions that contribute to deterioration of the housing stock.

Households in Modesto experience overcrowding at a lower rate than those in the County.

Extremely low-income owner-occupied households experience overcrowding at a similar rate to most of the other income levels in the City.
#20..
- 1060 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 95
Table 53: Overcrowding by Income Level
Housing Income
Range
Households
Number of People per Room
Overcrowding
(>1 person per room)
Severe Overcrowding
(>1.5 persons per room)
# # % # %
City of Modesto: Owner Households
<30% of HAMFI 2,109 109 5.2% 55 2.6%
30% to 50% of HAMFI 2,910 95 3.3% 15 0.5%
50% to 80% of HAMFI 5,920 270 4.6% 85 1.4%
80% to 100% of HAMFI 3,795 230 6.1% 35 0.9%
>100% of HAMFI 25,145 635 2.5% 135 0.5%
Total 38,540 1,339 3.5% 325 0.8%
City of Modesto: Renter Households
<30% of HAMFI 6,200 615 9.9% 180 2.9%
30% to 50% of HAMFI 5,864 549 9.4% 134 2.3%
50% to 80% of HAMFI 7,380 930 12.6% 325 4.4%
80% to 100% of HAMFI 3,214 204 6.3% 29 0.9%
>100% of HAMFI 9,795 625 6.4% 60 0.6%
Total 29,530 2,923 9.9% 728 2.5%
Stanislaus County: Owner Households
<30% of HAMFI 6,003 218 3.6% 85 1.4%
30% to 50% of HAMFI 8,400 370 4.4% 90 1.1%
50% to 80% of HAMFI 14,975 1,055 7.0% 345 2.3%
80% to 100% of HAMFI 10,365 900 8.7% 185 1.8%
>100% of HAMFI 60,835 2,030 3.3% 440 0.7%
Total 100,578 4,573 4.5% 1,145 1.1%
Stanislaus County: Renter Households
<30% of HAMFI 14,430 1,380 9.6% 310 2.1%
30% to 50% of HAMFI 13,699 1,704 12.4% 229 1.7%
50% to 80% of HAMFI 16,050 2,365 14.7% 700 4.4%
80% to 100% of HAMFI 7,299 644 8.8% 64 0.9%
#20..
- 1061 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 96
Housing Income
Range
Households
Number of People per Room
Overcrowding
(>1 person per room)
Severe Overcrowding
(>1.5 persons per room)
# # % # %
>100% of HAMFI 21,850 1,350 6.2% 365 1.7%
Total 73,328 7,443 10.2% 1,668 2.3%
Table 54 provides a summary of housing problems experienced by extremely low-income households in Modesto. Extremely low-income renter-occupied households experience both overpayment and overcrowding. According to 2015–2019 HUD CHAS data, nearly 19 percent of extremely low-income households experience at least one type of housing problem. The needs of extremely low-income households include housing units designed for unhoused persons, multifamily rental housing, factory-built housing, mobile homes, housing for agricultural employees, supportive housing, single-room occupancy units, and workforce housing.

Table 54: Extremely Low-Income Households with Housing Problems, Modesto, 2019 Total Extremely LowIncome Total Households% of Total
Households
Renters Owners
# % # %
Household
Income < 30% MFI 16,615 22.9% 12,395 19.1% 4,220 5.3%
With any
Housing Problem1
13,515 18.7% 10,130 15.6% 3,385 4.2%
With a Cost
Burden 30-50% 15,024 20.8% 8,245 11.5% 6,779 9.5%
Cost Burden >
50% 12,425 17.2% 8,510 11.9% 3,915 5.5%
Source: HUD CHAS Data (2015–2019), Summary Level Data for Modesto.

The City of Modesto has focused funding to address the needs of extremely low-income households on programs that enable households and individuals living in poverty to attain self-sufficiency, support at-risk youth to succeed in school and graduate, and protect the health and safety of low-income households. These programs include the following:
▪ The City of Modesto launched the Camp2Home program in 2020 as an innovative approach to address homelessness through five key fronts: (1) outreach, (2) shelter, (3) job training, (4) permanent employment, and (5) permanent housing. Since the launch of the Camp2Home program, in partnership with several local nonprofit organizations. #20..
- 1062 -
City of Modesto Housing Element
Housing Needs Assessment
City of Modesto 97
▪ Homeless Discharge Coordination: The objective is to create a community standard of care and connection between discharging and receiving providers of services for the homeless.
▪ Homeless Prevention and Rapid Rehousing: Using ESG funds to provide rapid rehousing of persons who are homeless.
▪ Foster care/youth facilities: The Youth Navigation Center provides a one-stop shop service hub for youth experiencing or in danger of homelessness. ▪ Emergency Rental Assistance Program (ERAP): The City of Modesto received approximately $6.3 million from the federal government and $6.8 from the State of California for distribution to households that are unable to pay rent and utilities. ▪ Low Income Household Water Assistance Program (LIHWAP): The City is a participant of the LIHWAP which is a federally funded program that offers a one-time payment to help pay past due water or wastewater bills.

Summary of Housing Needs
An analysis of the housing needs in the City of Modesto reveals a number of trends, such as an increased need for housing large households, extremely low income households, and persons experiencing homelessness. There have been two age populations that have increased in Modesto in the last 10 years, 25–34 and 60 years and older, which suggests there are growing numbers of younger households and retirement age households. Additionally, compared to the County, Modesto is comparable in almost every demographic statistic as Modesto shares a majority of the population and higher share of special housing needs population (i.e., person experiencing homelessness).
#20..
- 1063 -

AFFIRMATIVELY FURTHERING

FAIR HOUSING
Housing Element 2023-2031
#20..
- 1064 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 99
Affirmatively Furthering Fair Housing
Introduction
Assembly Bill (AB) 686 requires a jurisdiction’s Housing Element to provide an analysis of barriers that restrict access to opportunity and a commitment to specific meaningful actions and how the identified Regional Housing Needs Allocation (RHNA) sites affirmatively further fair housing. AB 686 requires jurisdictions to identify meaningful goals to address the impacts of systemic issues such as residential segregation, housing cost burden, and unequal educational or employment opportunities to the extent these issues create and/or perpetuate discrimination against protected segments of the population. In addition, AB 686:
▪ Requires jurisdictions and public housing authorities to administer their programs and activities related to housing and community development in a way that affirmatively furthers fair housing;
▪ Prohibits the state, cities, counties, and public housing authorities from taking actions materially inconsistent with their Affirmatively Furthering Fair Housing (AFFH) obligation;
▪ Adds an AFFH analysis to the Housing Element (an existing planning process that California cities and counties must complete) for plans that are due beginning in 2021; and
▪ Includes in the Housing Element’s AFFH analysis a required examination of issues such as segregation and resident displacement, as well as the required identification of fair housing goals.

The bill added an assessment of fair housing to the Housing Element which includes the following components:
▪ A summary of fair housing issues and assessment of the City’s 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.

Public Outreach
The City of Modesto has developed a comprehensive and successful public engagement strategy that has provided valuable community feedback to date, the City will continue to gather information as the Housing Element progresses. It will continue to provide extensive information to guide the Housing Element update process. Outreach for the Housing Element #20..
- 1065 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 100
update began in May 2023, starting with a series of stakeholder focus groups. Community outreach involved engaging a diverse group of people in the planning process, including community members, stakeholders, service providers, educators, the Planning Commission, and City Council in the identification of Modesto’s Housing Element housing issues.

The main strategies to facilitate public participation and collect input are summarized below.

Outreach Activities
The public participation program includes using the following methods:
▪ Survey available in hard copy and online in both English and Spanish ▪ Stakeholder focus group interviews
▪ Dedicated webpage on City website
▪ Email list
▪ City social media accounts
▪ Community workshops
▪ Community organization meetings
▪ Joint City Council and Planning Commission study session ▪ Public hearings
Organizations Consulted
Organizations contacted and interviewed included:
▪ Modesto Chamber of Commerce
▪ Stanislaus Regional Housing Authority
▪ Stanislaus County
▪ PMZ Real Estate
▪ Korazón.io Konsultants
▪ Manufacturer's Council of the Central Valley
▪ Building Industry Association of Central California
▪ CHG Structural
▪ Tuolumne River Trust
▪ South Modesto Businesses United (S.M.B.U.)
▪ California Rural Legal Assistance
▪ West Modesto Community Collaborative – People of Action Council #20..
- 1066 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 101
▪ South Modesto Partnerships Group
▪ Love Modesto/Love Stanislaus County
▪ City Ministries Network
▪ Central Valley Hispanic Chamber of Commerce
▪ Modesto Neighborhoods Inc.
▪ Stanislaus Community Foundation
▪ EAH Housing (Archway Commons)
▪ Satellite Housing Inc (Tower Park)
▪ Habitat for Humanity
▪ Self Help Enterprises
▪ Faith in the Valley
▪ Project Sentinel
▪ Center for Human Services
▪ Community Housing & Shelter Services (CHSS)
▪ Haven's Women Center
▪ Interfaith Ministries
▪ Senior Law Group
▪ El Modesto Commitè
▪ Emanuel Lutheran Church
The City is making a comprehensive effort to reach lower- and moderate-income individuals to participate in the Housing Element update. As noted above, the City developed a multilingual outreach campaign and contacted a variety of local organizations, including advocacy groups and the fair housing service provider, local service providers, and communitycentered organizations.

Housing Element Update Website
The City created the Housing Element update webpage on the City’s website to provide:
▪ Background and information on the Housing Element process; ▪ Link to Housing Element update email list;
▪ Link to the Housing Element update multilingual survey; ▪ Documents related to the Housing Element, including the first public review draft; #20..
- 1067 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 102
▪ Presentation materials and recordings of presentations; and ▪ Notification to the public of future events.

Stakeholder Focus Groups
The City reached out to 32 individuals and organizations who represent a diverse range of agencies and interest groups to participate in focus groups regarding housing needs and issues in Modesto. Three focus groups were held at the following dates:
▪ May 23, 2023, from 12:00 PM to 1:00 PM
▪ May 31, 2023, from 12:00 PM to 1:00 PM (two groups)
Seven different dates and times were offered to community members to ensure equity and flexibility for any community members who wanted to participate.

Focus groups discussed a variety of topics and the following key themes were identified:
▪ Need to incentivize accessory dwelling unit (ADU) construction; ▪ Need for more education and outreach for non-English speakers to inform residents of housing law and affordable housing;
▪ Need for supportive, senior, veteran and student housing at the very low- and lowincome area median income (AMI); and ▪ Disparity of housing and quality/access to amenities in west Modesto, the Airport District, and South Modesto.

The participants had varying perspectives informed by their involvement and familiarity with Modesto, but homelessness, education and support, equitable development and investments, and a lack of affordable housing stock were the issues that were mentioned the most.

Housing Element Survey
Another component of the outreach effort was the Housing Element survey, posted on the City’s website on May 23, 2023. The survey was promoted through a variety of channels to reach the entire community. The survey was made available in both English and Spanish. As of July 2023 the City has received a total of 89 completed surveys and will continue to collect survey data through the Housing Element Planning process. Responses to the survey primarily revealed concerns from residents regarding:
▪ Availability of affordable units in Modesto;
▪ Difficulty affording rent or mortgage payments; and
▪ Issues of homelessness including providing supportive housing.

Respondents also indicated that the greatest housing needs in Modesto are low-income persons and seniors. The survey results show strong support for increased affordable housing #20..
- 1068 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 103
as well as providing assistance with housing costs. Respondents also identified programs to support single first time homebuyers, infill development, microunits and mini homes to help with the homelessness population.

Community Workshops
The City held two virtual public workshops – Thursday, July 6, 2023 and Wednesday, July 12, 2023 both starting at 6:00 p.m. – to present the Housing Element update and gather public input. Each workshop had simultaneous Spanish translation. Twenty-eight members of the community participated in the workshops and many provided feedback through question and answer sessions on the Housing Element update process. Materials and video recordings of the presentations in both English and Spanish were made available on the Modesto Housing Element webpage on the City’s website for those who could not attend, or who wanted to review the materials and meetings at their leisure.

Meetings with Community Organizations
Modesto Commitè
The City held an in-person meeting with the community group Modesto Commitè on July 10, 2023. The meeting included a presentation which provided a high-level overview of the draft Housing Element process, the approach to the sites inventory, and then a brief description of some of the programs that could potentially have the highest impact on housing and ADU production, removal of governmental constraints, and meeting special housing needs. The meeting also included a question-and-answer session with the attendees.

West Modesto Collaborative
The City held an in-person meeting with the community group West Modesto Collaborative on July 12, 2023. The meeting included a presentation which provided a high-level overview of the draft Housing Element process, the approach to the sites inventory, and then a brief description of some of the programs that could potentially have the highest impact on housing and ADU production, removal of governmental constraints, and meeting special housing needs. The meeting also included a question-and-answer session with public attendees.

Spanish translation was provided for this meeting.

Emanuel Lutheran Church
The City held an in-person meeting with the community group Emanuel Lutheran Church on July 19, 2023. The meeting included a presentation which provided a high-level overview of the draft Housing Element process, the approach to the sites inventory, and then a brief description of some of the programs that could potentially have the highest impact on housing and ADU production, removal of governmental constraints, and meeting special housing needs. The meeting also included a question-and-answer session with public attendees. #20..
- 1069 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 104
Findings
Most focus group attendees and survey respondents support the provision of more housing assistance, financial or policy based, for the low-income population in finding housing. In summary, the community engagement and input yielded the following themes and feedback:
▪ ADU Incentives: Participants expressed the difficulties and barriers to ADU development in Modesto. The City recently updated its ADU ordinance to comply with state laws that make it easier to build an ADU. Additionally, Program A - 10 establishes ADU incentives including preapproved/prereviewed plans, a fee exemption from Capital Facilities Fees, and educational promotion efforts. ▪ Education and Outreach: Participants expressed the challenges and barriers for community engagement and education as it related to affordable housing, available housing services and programs, housing policy, and other City events. Participants noted the need for improved access to bilingual materials and bilingual messaging to Modesto residents. Program F - 1, F - 2 and F - 4 implement outreach and education strategies to increase community awareness ADUs, housing resources, and available fair housing support. Program F - 3 focuses on providing bilingual materials to the City residents. The full housing element is also being translated into Spanish and will be posted along with the English version of the housing element. ▪ Prioritizing Affordable Housing for a Variety of Groups: Participants addressed the need for prioritizing development for veterans, seniors, students, and single mothers.

Programs D - 1, D - 5, and D - 8 are included to provide resources and facilitate and support affordable housing.
▪ Disparity of investment Across Modesto Neighborhoods: Participants noted a disparity in housing and quality of infrastructure and amenities between West Modesto, the Airport District, and South Modesto and the rest of the City. Participants noted the importance of investing in these areas to provide access to necessary resources and adequate infrastructure concurrently with housing development.

Programs E - 1 and E - 2 are included to ensure place-based improvements are occurring in the areas listed as well as downtown Modesto. ▪ Ease of Permitting Process: Participants highlighted the ease of going through the permitting process. They specifically noted the willingness of the City to be flexible, responsive, and assist applicants in navigating the permitting process.

Assessment of Fair Housing
City Overview
Modesto is the county seat and the largest city in Stanislaus County, in the SacramentoStockton-Modesto, CA Metropolitan Statistical Area. The City is located in the Central Valley 68 miles south of Sacramento and 66 miles east of San Francisco. The City is bordered by the City #20..
- 1070 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 105
of Ceres to the south and almost entirely surrounded by agricultural land. Modesto is approximately 43 square miles of land at the intersection of State Routes 99 and 132 and is bisected by the Tuolumne River.

Much of the fair housing analysis is based upon census data provided at the census tract level.

Modesto has a total of 50 census tracts. Figure 11 displays the census tracts in the City and the RHNA sites within those census tracts; however, several of the census tracts are not solely in Modesto and have portions in neighboring jurisdictions. As a result, demographic information for these census tracts reflects neighboring communities, as well as Modesto.

Most of the census tracts in Modesto contain housing, with the majority of the City being zoned for single-family neighborhoods. Census Tract 21.00 contains an airport, and tracts in the north of the City.

The Affirmatively Furthering Fair Housing (AFFH) section also considers the effects that the selected RHNA sites may have on fair housing. Selected RHNA sites and entitled projects are relatively distributed throughout the City. The new Mixed-Use zones, MU-P and MU-H, and amended P-D standards along Sisk Road, McHenry Avenue, Oakdale Road, and Yosemite Boulevard allow for higher density development in the central and northern areas of the City.

The rezoning is anticipated to be completed in November, 2023. These identified sites will offer proximity to job opportunities and other commercial resources such as schools and grocery stores.
#20..
- 1071 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 106
Figure 11: Census Tracts and RHNA Sites
39 of the 50 census tracts that intersect Modesto have the majority of their area located inside City limits. Of the 39 tracts mostly in the City, These tracts vary in demographic makeup, with tracts on average having lower incomes and more predominant non-White populations in southern and western Modesto, and tracts in central and eastern Modesto have higher incomes and a more predominant White population. While there is much variation in the tracts #20..
- 1072 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 107
surrounding the City, the majority of the surrounding areas follow the opportunity trends of the northern and central areas of Modesto, with the southern areas having particularly low levels of opportunity compared to the region. There is high variation in resource categories within the City, with Low Resource or areas of High Segregation and Poverty in the southern and downtown areas, Moderate resource central areas, and High and Highest resource areas in the northern and eastern areas of the City. This is a relative ranking based on composites of environmental, economic, and education scores.

Currently, higher density, mixed-use development opportunities in the City are primarily located in the Downtown area. A portion of the Downtown includes a R/ECAP and has a higher concentration of the non-White population. The City is increasing opportunities for higher density housing, mixed-use development through the creation of mixed-use zones outside of the R/ECAP and in areas of the City that currently have a lower concentration of the non-White population. The inclusion of the opportunity sites in these new mixed-use corridors is not expected to negatively change or exacerbate fair housing considerations of segregation, and will increase housing mobility and access to opportunity for lower income households.

The City is including a number of programs to increase housing types and opportunities in higher resource areas of the City. These efforts go beyond the sites that are included in the Opportunity Site List and help improve housing choice and mobility, by providing opportunities to increase the number and type of dwelling units in lower density residential zones.

Per Program A - 2, the City is rezoning parcels on McHenry, Sisk, Oakdale, and Yosemite to new Mixed-Use-Pedestrian (MU-P) and Mixed-Use-Highway (MU-H) zones, and modifying P-D parcels to allow for 45 du/ac in order to create a net new capacity for 21,014 units. This is an added capacity of almost twice the RHNA of 11,248, and almost three times the remaining RHNA need after factoring in pending projects and ADUs. These zoning amendments are anticipated to be completed in November, 2023. Beyond these zoning amendments, the City is increasing the maximum density of the R-1 zone from 7.5 to 10.9, the R-2 zone from 14.5 to 22, and the maximum density of the R-3 zone from 29 to 45, as noted in Program A - 4. This will create ample opportunity for high density residential development throughout the City.

The City is also including Programs A - 9 and A - 10 to incentivize and promote ADU development to increase opportunities for low income households in lower density, high opportunity areas of the City. This includes pre-approved plans, fee exemptions, and increased outreach strategies. Through Program A - 11, the City will facilitate missing middle or middleincome housing and increase the variety of housing choice and opportunity in single-family neighborhoods by encouraging the development of duplexes on corner lots in the R-1 zone.

The City currently allows duplexes on corner lots in the R-1 Zone by right. Program A - 15 will assist homeowners in developing SB 9 units on their properties. #20..
- 1073 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 108
In addition to increase opportunities for housing choice and housing mobility in higheropportunity areas of Modesto, the City is implementing several programs to address placebased improvements in the lower-opportunity areas, such as downtown or southern Modesto.

As noted in Program E - 1, the City is contributing to community revitalization and improved quality of life in downtown Modesto through efforts including but not limited to the following:
• Currently developing plans to identify necessary improvements in southwest Modesto and downtown through the Urban Planning and Project Management Support Project to develop housing downtown and on the municipal golf course. • Provide a Capital Facilities Fees waiver for low-income projects. • Street improvement projects to transform 10th Street into a pedestrian-oriented corridor.
• A full pedestrian redevelopment of 9th Street, including Class I bike lines. This is in conjunction with Archway Commons Phase II, a 79-unit housing development on 7th Street.
• A redevelopment of the downtown bus station to transform it into a transit hub. This includes preparations for the Altamont Corridor Express, anticipated to begin operations in 2026.
• A new courthouse to be opened in 2024, with redevelopment of the former courthouse and county jail as a mixed-use project.

As noted in Program E - 2, the City is pursuing Place-Based improvements in the islands surrounded by unincorporated County land in southern Modesto. These efforts include but are not limited to
• Investing $10 million to upgrade infrastructure in the County Islands such as curb gutters, sidewalks, streetlighting, sewer, water, and storm drains. • Collaborating with Stanislaus County to address any property tax issues as money becomes available to annex “island” properties to Modesto. • Through the Capital Improvement Plan, working with the County to fund sewer connections.
• Developing the Southwest Modesto Plan, which will serve as a blueprint for future development, with guidance on land use, economic development, transportation, infrastructure, and other issues for the Southwest Modesto Plan Area. #20..
- 1074 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 109
Table 55: Comparison of Fair Housing with Respect to Location Census
Tract Low Mod.

Above
Mod,
RHNA
Units
Total
HH
Total
Pop.

TCAC
Composite
Category
Median
Income
% with
Disability
% of
Children
in FHH
CES
Percentile
%
NonWhiteR/ECAP
Present
Census Tracts Mostly Inside of Modesto

4.03 0 0 90 90 1% 1,600 1,512 Highest
Resource
$88,162 13% 31% 45% 36% No

4.04 114 99 126 339 3% 2,061 1,120 High
Resource
$65,859 16% 14% 68% 42% No

5.03 927 403 0 1,330 11% 1,731 1,298 High
Resource
$70,483 9% 19% 60% 56% No

5.04 141 0 707 848 7% 1,784 2,282 Highest
Resource
$105,000 14% 24% 45% 55% No

5.05 0 0 175 175 1% 1,729 2,009 High
Resource
$78,163 13% 17% 38% 53% No

5.06 226 12 112 350 3% 1,827 1,420 Moderate
Resource
$53,589 18% 32% 41% 58% No

6.02 0 0 0 0 0% 933 2,002 Moderate
Resource
$96,875 11% 18% 81% 61% No

8.01 284 294 0 578 5% 2,660 1,353 Moderate
Resource
$62,167 21% 32% 68% 34% No

8.03 810 60 0 870 7% 1,653 1,327 Low Resource $53,375 22% 34% 91% 64% No

8.05 118 0 0 118 1% 1,889 1,749 Moderate
Resource
$56,773 16% 5% 64% 58% No

8.06 0 0 0 0 0% 1,650 2,295 Moderate
Resource
$65,179 18% 38% 37% 42% No
#20..
- 1075 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 110
Census
Tract Low Mod.

Above
Mod,
RHNA
Units
Total
HH
Total
Pop.

TCAC
Composite
Category
Median
Income
% with
Disability
% of
Children
in FHH
CES
Percentile
%
NonWhiteR/ECAP
Present

8.07 0 50 50 100 1% 1,437 2,527 Moderate
Resource
$57,013 16% 9% 62% 51% No

9.05 366 18 0 384 3% 2,699 1,896 Highest
Resource
$58,658 16% 20% 57% 31% No

9.06 0 9 0 9 0% 2,699 1,935 Highest
Resource
$58,658 16% 20% 57% 50% No

9.07 213 4 15 232 2% 1,483 1,155 Highest
Resource
$67,642 14% 14% 45% 28% No

9.08 170 0 0 170 1% 1,910 1,888 High
Resource
$68,438 16% 16% 52% 46% No

9.09 165 25 0 190 2% 1,607 977 High
Resource
$71,629 12% 24% 63% 39% No

9.10 0 0 0 0 0% 2,334 1,552 Moderate
Resource
$50,845 17% 32% 62% 51% No

9.11 0 0 0 0 0% 1,825 1,876 Highest
Resource
$78,750 14% 11% 39% 51% No

9.12 0 0 7 7 0% 1,507 1,988 Highest
Resource
$156,303 10% 5% 43% 58% No

10.01 257 23 41 321 3% 2,512 1,414 High
Resource
$60,671 15% 24% 55% 33% No

10.02 0 0 0 0 0% 1,318 828 Moderate
Resource
$63,707 22% 43% 52% 48% No
#20..
- 1076 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 111
Census
Tract Low Mod.

Above
Mod,
RHNA
Units
Total
HH
Total
Pop.

TCAC
Composite
Category
Median
Income
% with
Disability
% of
Children
in FHH
CES
Percentile
%
NonWhiteR/ECAP
Present

11.00 248 305 0 553 5% 1,700 1,024 Moderate
Resource
$48,188 13% 19% 83% 45% No

12.00 80 89 0 169 1% 1,604 1,414 Moderate
Resource
$62,434 11% 38% 72% 49% No

13.00 220 104 0 324 3% 2,244 1,139 Moderate
Resource
$95,278 9% 21% 78% 46% No

14.00 230 59 0 289 2% 2,328 815 Low Resource $55,449 15% 23% 84% 60% No

16.01 101 11 7 119 1% 1,242 1,940 High
Segregation &
Poverty
$48,563 16% 33% 88% 72% No

16.04 0 0 0 0 0% 986 1,340 High
Segregation &
Poverty
$38,409 14% 25% 75% 82% No

17.00 105 16 8 129 1% 777 740 High
Segregation &
Poverty
$37,553 14% 42% 95% 70% Yes

18.00 289 90 0 379 3% 1,040 1,206 High
Segregation &
Poverty
$27,877 24% 42% 94% 49% No

19.00 0 0 32 32 0% 1,885 903 Low Resource $71,109 14% 14% 69% 50% No

20.04 164 565 0 729 6% 2,167 2,317 Low Resource $53,793 14% 21% 90% 60% No

20.05 0 0 0 0 0% 1,034 1,861 Moderate
Resource
$64,013 18% 10% 76% 68% No
#20..
- 1077 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 112
Census
Tract Low Mod.

Above
Mod,
RHNA
Units
Total
HH
Total
Pop.

TCAC
Composite
Category
Median
Income
% with
Disability
% of
Children
in FHH
CES
Percentile
%
NonWhiteR/ECAP
Present

20.06 0 0 0 0 0% 1,580 2,404 Moderate
Resource
$89,278 11% 18% 53% 59% No

21.00 0 0 0 0 0% 777 1,621 High
Segregation &
Poverty
$28,924 18% 14% 99% 63% Yes

22.00 0 18 0 18 0% 1,641 772 Low Resource $44,010 16% 24% 95% 67% Yes

23.01 0 0 571 571 5% 1,278 1,230 Low Resource $61,917 8% 7% 92% 70% No

24.01 0 0 0 0 0% 937 1,598 Low Resource $52,681 6% 16% 74% 86% No

28.03 0 0 550 550 4% 1,135 1,549 High
Resource
$81,362 22% 24% 56% 34% No
Census Tracts Mostly Outside of Modesto

4.02 0 0 1,739 1,739 14% 755 718 Highest
Resource
$86,750 11% 16% 70% 57% No

5.01 0 0 436 436 4% 2,475 1,274 Highest
Resource
$95,036 13% 7% 61% 41% No

6.01 0 0 0 0 0% 1,399 1,696 Highest
Resource
$85,686 8% 9% 61% 52% No

15.00 35 0 0 35 0% 2,133 1,281 Low Resource $71,290 19% 14% 91% 58% No

16.03 92 0 0 92 1% 1,605 1,442 Low Resource $55,461 14% 27% 85% 74% No

20.02 0 0 0 0 0% 1,442 1,284 High
Segregation &
Poverty
$47,967 19% 24% 92% 47% No
#20..
- 1078 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 113
Census
Tract Low Mod.

Above
Mod,
RHNA
Units
Total
HH
Total
Pop.

TCAC
Composite
Category
Median
Income
% with
Disability
% of
Children
in FHH
CES
Percentile
%
NonWhiteR/ECAP
Present

23.02 0 0 0 0 0% 1,175 1,922 High
Segregation &
Poverty
$36,102 13% 38% 96% 70% No

24.02 0 0 0 0 0% 1,301 1,062 Low Resource $34,617 8% 19% 88% 71% Yes

25.01 0 0 0 0 0% 411 1,638 Low Resource $- 18% 23% 83% 76% No

27.01 0 0 0 0 0% - 2,284 High
Resource
$- 0% 0% 59% 56% No

31.00 0 0 0 0 0% 1,138 2,101 Low Resource $59,444 14% 28% 92% 52% No #20..
- 1079 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 114
Fair Housing Enforcement and Outreach Capacity
Fair housing enforcement and outreach capacity refers to the ability of a locality and fair housing entities to disseminate information related to fair housing laws and rights and provide outreach and education to community members. Enforcement and outreach capacity also includes the ability to address compliance with fair housing laws, such as investigating complaints, obtaining remedies, and engaging in fair housing testing.

Federal Fair Housing Laws prohibit housing discrimination based upon race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information. California’s Fair Housing Laws also prohibit discrimination in housing based on occupation, age, or protected characteristic; method of financing; or the intended occupancy by lower or moderate income people.

A review of relevant City policies and regulations by the City attorney on July 24, 2023 shows that the City is in compliance with all State and Federal civil rights and fair housing laws. This includes compliance with the following:
• California Fair Employment and Housing Act (FEHA) (Part 2.8 (commencing with section 12900) of Division 3 of Title 2);
• California Government Code sections 8899.50, 65008, and 11135; • Civil Code section 51 (the Unruh Civil Rights Act); and • FEHA regulations in California Code of Regulations, title 2, sections 12005-12271 • Density Bonus Law (Gov. Code, § 65915.)
• Housing Accountability Act (Gov. Code, § 65589.5.)
• No-Net-Loss Law (Gov. Code, § 65863)Density Bonus Law • Least Cost Zoning Law (Gov. Code, § 65913.1)
• Excessive subdivision standards (Gov. Code, § 65913.2.) • Limits on growth controls (Gov. Code, § 65302.8.)
• Housing Element Law (Gov. Code, § 65583, esp. subds. (c)(5), (c)(10).) The City also has local laws relating to fair housing and housing choice, including Modesto’s Rental Housing Safety Program. The program requires rental properties to comply with all local health, building, and safety codes. It is enforced by the Neighborhood Preservation Unit.

Modesto does not have a rental registration ordinance that requires additional requirements of rental buildings beyond existing city code.

The City has no local rent-control ordinances and has no local occupancy limits beyond adopted building and fire code.
#20..
- 1080 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 115
Any legal matters and litigation in the City since the beginning of the 5th Cycle have not been related to fair housing.

Project Sentinel provides fair housing counseling services for the City of Modesto, including investigating fair housing complaints of housing discrimination, providing outreach and education to housing providers, and assisting residents with filing complaints with state and federal enforcement agencies such as the Department of Fair Employment and Housing (DEFH) and the HUD Office of Fair Housing and Equal Opportunity (HUD FHEO). Project Sentinel is a nonprofit organization that provides a variety of fair housing resources and services in Northern California, including resources for tenants, property managers, and service providers, dispute resolution, and housing counseling. Annually, Project Sentinel processes over 10,000 initial contacts; handles over 400 housing discrimination complaints and over 1,700 landlord tenant and community dispute cases; counsels over 750 homeowners; and provides monthly workshops on housing topics.

The City of Modesto partners with Project Sentinel to combat housing discrimination and to educate residents, landlords, and developers on their fair housing rights and responsibilities.

The City also has a page on their website which details the Fair Housing Act, how to identify Fair Housing Discrimination, and how to file a fair housing complaint. The page includes a checklist on what information is needed to file a complaint, as well as a direct link to file a complaint with either Project Sentinel or the FHEO.

Local Data
Project Sentinel provided information for the Housing Element Update related to fair housing activity in Modesto. Figure 12 shows the count of housing discrimination complaints by basis in Modesto. Table 56 indicates that the City of Modesto had the most housing discrimination complaints compared to the other cities in Stanislaus County. This could be indicative of the population size, being the largest city in the County, or successful community outreach due to the presence of a Project Sentinel office in Modesto.
#20..
- 1081 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 116
Figure 12: Fair Housing Complaints (2014-2019)
Table 56: Fair Housing Complaints by Jurisdiction (2014-2019) Jurisdiction Complaints
Modesto 165
Ceres 30
Empire 8
Hickman 1
Newman 7
Oakdale 21
Riverbank 1
Waterford 6
Valley Home 1
Source: Project Sentinel
As shown in Table 57, over 70 percent of cases filed were submitted by White households, 13 percent were filed by Black households, 5 percent were filed by Native American or Alaskan Native households, and 3 percent were filed by Asian households. Table 58 shows that over 77 percent of calls made for assistance from Project Sentinel in the City of Modesto were by extremely low-income (0 to 30% AMI) households.
#20..
- 1082 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 117
Table 57: Dispute Cases by Race in Modesto, 2015-2023
2015 2016 2017 2018 2019 2020 2021 2022 2023
White 18 12 17 9 25 10 13 29 13
Black 1 5 6 1 4 0 5 4 1
Asian 0 1 1 2 1 0 0 1 0
Native American / Alaskan
Native 2 4 1 0 1 2 1 0 0
Other 1 0 2 2 3 0 0 7 2
Total 22 22 27 14 34 12 19 41 16
Source: Project Sentinel
Table 58: Dispute Calls by Income Category in Modesto, 2015-2023 2017 2018 2019 2020 2021 2022
0-30% 31 126 133 87 125 56
31-50% 9 14 20 13 10 1
51-80% 3 17 2 6 1 0
80%+ 7 6 4 0 0 0
Other 8 10 21 7 1 1
Total 58 173 180 113 137 58
Source: Project Sentinel
Modesto continues to work with Project Sentinel to provide fair housing services. During the past five years, Project Sentinel opened a total of 122 fair housing discrimination cases for investigation and provided fair housing education and tenant/landlord mediation to over 5,500 individuals. The City is including Program E - 3 to continue to provide funds to and contract with Project Sentinel, or an agency that provides similar services, to provide fair housing assistance including landlord/tenant counseling.

The Department of Housing and Urban Development’s Office of Fair Housing and Equal Opportunity (FHEO) enforces fair housing by investigating complaints of housing discrimination. From 2013-2022 there were 99 fair housing inquiries and 64 fair housing cases filed with FHEO on behalf of the City of Modesto. Inquiries can be based on multiple identities.

Six (6) inquiries referenced disability concerns, two (2) inquired on familial status, one (1) inquired on race, one (1) inquired on national origin, one (1) inquired on retaliation, one (1) inquired on sex-based discrimination, and the remaining 89 were found to have no identitybased inquiries. Of the 64 cases, 17 were on the basis of disability, 17 were on the basis of retaliation, 10 were on the basis of race, 9 were on the basis of sex, 9 were on the basis of #20..
- 1083 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 118
familial status, 3 were on the basis of color, and 2 were on the basis of national origin. There are no outstanding lawsuits or complaints regarding fair housing in the City.

Integration and Segregation
Race and Ethnicity
Figure 13 shows the racial and ethnic majority by census tract in the City of Modesto. As illustrated, the northern and central areas of the City have a slim (<10%)to predominant (>50%) White majority, while the southern and western parts of the City have areas with sizeable (10%–50%) to predominant (> 50%) Hispanic majorities. These trends extend beyond the City boundaries. The tracts with Hispanic majorities have a larger low- to moderate- income population and less positive TCAC scores than the majority White tracts.

These trends continue beyond the City limits. Modesto has comparable racial trends to the County as a whole. Regionally, there is a common correlation between wealth and race, which may help explain the racial/income concentrations in the City. The City has a slightly smaller Hispanic population (43.5 percent) in comparison to the County (49.5 percent). Modesto has a comparable Asian/Asian Pacific Islander (API) population (6.9 percent) to the County 5.7 percent), and a comparable non-Hispanic White population (40.6 percent) to the County (37.3 percent).

The City is including Program F - 3 to continue efforts to target outreach to the Hispanic population through providing all material and communications in both English and Spanish.

The full housing element is also being translated into Spanish and will be posted along with the English version of the housing element.

The area with the Hispanic majority also includes the R/ECAP area. HUD defines R/ECAP as areas where the percentage of the population that is non-White is over 50 percent and the percentage of households with incomes below the poverty line is over 40 percent.

Alternatively, a neighborhood can be a R/ECAP if it has a poverty rate that exceeds 40 percent or is three or more times the average tract poverty rate for the metropolitan/micropolitan area, whichever threshold is lower. The City is including Programs E - 1 and E - 2 to facilitate place-based improvements and investment in the downtown and southern county islands of Modesto, where the R/ECAP is located.
#20..
- 1084 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 119
Figure 13: Racial and Ethnic Majority (2021)
Source: HCD AFFH Data Viewer
As shown in Figure 14, there is significant variation in the levels of concentration of the nonWhite population throughout the City. The southern and western areas of the City have a higher concentration of the non-White population. The tracts with a larger non-White population also generally have a larger low- to moderate- income population and less positive #20..
- 1085 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 120
TCAC scores than the more central areas of the City. In the southern area of Modesto, the city boundaries are fragmented and alternated with pockets of unincorporated County, This southern Modesto area has the highest concentration of the non-White population and also includes a R/ECAP.

As of 2021, 59.4 percent of the City was non-White, while 62.7 percent of the County was nonWhite, indicating that the overall distribution of the non-White population is similar between the City and the region as a whole.

Currently, higher density, mixed-use development opportunities in the City are primarily located in the Downtown area. A portion of the Downtown includes a R/ECAP and has a higher concentration of the non-White population. The City is including Programs E - 1 and E - 2 to facilitate place-based improvements and investment in the downtown and southern county islands of Modesto, where the R/ECAP is located.

The City is increasing opportunities for higher density housing, mixed-use development through the creation of mixed-use zones outside of the R/ECAP and in areas of the City that currently have a lower concentration of the non-White population. Regionally, there is a common correlation between wealth and race, so creating opportunities for lower-income high density housing in these areas may lead to a more even distribution of the population.

The new mixed-use zones and other high density residential rezones are currently being prepared, and are planned and expected to be adopted by the end of 2023. The City is also including Programs A - 9 and A - 10 to incentivize and promote ADU development to increase opportunities for low income households in lower density, high opportunity areas of the City.

This includes pre-approved plans, fee exemptions, and increased outreach strategies. Through Program A - 11, the City will facilitate missing middle or middle-income housing and increase the variety of housing choice and opportunity in single-family neighborhoods by encouraging the development of duplexes on corner lots in the R-1 zone. The City currently allows duplexes on corner lots in the R-1 Zone by right. Program A - 15 will assist homeowners in developing SB 9 units on their properties.

Figure 14 compares the RHNA units with the percentage of the population that is non-White.

About 60 percent of the RHNA units are located in areas of the City where 40 to 60 percent of the population is non-White. There are very few sites in areas with relatively very high or relatively very low concentrations of the non-White population. This is a reflection of the trends within the City as a whole, as most of Modesto’s block groups are 20 to 60 percent non-White.

The City is including Program F - 3 to continue efforts to target outreach to the non-White population through providing all material and communications in both English and Spanish.

The City’s RHNA strategy reflects the overall composition of Modesto, and is not expected to negatively exacerbate segregation conditions related to race or ethnicity. #20..
- 1086 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 121
Figure 14: Percentage of the Population that is Non-White (2020) Source: HCD AFFH Data Viewer
#20..
- 1087 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 122
Figure 15: Percent Non-White Comparison of RHNA Units
Dissimilarity Index – Race and Ethnicity
Segregation is defined by the census as the spatial distributions of different groups among units in a metropolitan area. Segregation can be quantified by using the dissimilarity index.

The dissimilarity index measures the distribution of two groups in a city and assigns a score between 1 and 100. The level of segregation is determined by assessing what percentage of residents of a census block would have to move for each block to have the exact same population of said group. A score of zero (0) reflects a fully integrated environment; a score of 100 (or 100%) reflects full segregation. Therefore, a higher dissimilarity index indicates higher concentrations of the indicated ethnic groups in areas of the City, when compared to the White population distribution. A lower dissimilarity index implies higher integration, and a more even distribution of each ethnicity when compared to the White population. The formula for this calculation is provided by the HCD AFFH Guidance Document.

The categories for the dissimilarity index on a scale of 1-100 are as follows:
▪ <30: Low Segregation
▪ 30 – 60: Moderate Segregation
▪ >60: High Segregation
#20..
- 1088 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 123
Ethnic and racial composition of an area is useful in analyzing housing demand and related fair housing concerns, as these factors illustrate the relationship with other characteristics such as household size, locational preferences, and mobility.

Figure 16 provides the dissimilarity index values in Modesto, indicating the level of segregation between White residents and residents who are non-White, Black, Hispanic, or Asian/Pacific Islander. In 2020, there was low segregation between the Non-White and White, and Black and White populations, and moderate segregation between the Hispanic and White, and Asian/Pacific Islander and White populations. A low dissimilarity index of 29.73 in the figure below means that 29.73 percent of Modesto’s Non-White or White residents would need to move to a different census block to create balanced integration between Non-White and White residents. Levels of segregation have remained relatively consistent since 2000.

The County has moderate levels of segregation across all racial and ethnic comparisons, indicating that segregation is more prevalent regionally than in the City of Modesto.

Figure 16: Racial/Ethnic Dissimilarity Index (2000-2020) Source: HUD AFFH Database, 2020
Income
The dissimilarity index can also be used to calculate income segregation, using the same scale as above. In the City of Modesto, the dissimilarity index for income is 29.4, with indicates low 30.05 26.3734.33 27.24 29.8 42.76 31.32 33.74 26.16 21.0331.06 28.99 32.2542.78 32.69 38.32 29.73 26.94 32.97 37.12 34.4749.11 34.4746.31 0 10
20 30
40 50
60 Non-White/White
Black/White
Hispanic/White
Asian or Pac Islander/White
Non-White/White
Black/White
Hispanic/White
Asian or Pac Islander/White
Modesto Stanislaus County
2000 2010 2020
#20..
- 1089 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 124
segregation. In Stanislaus County as a whole, the dissimilarity index for income is 26.2, which is also low.

Identifying low to moderate income (LMI) geographies and individuals is important to overcome patterns of segregation. HUD defines an LMI area as a Census tract or block group where over 51 percent of the households are LMI (based on HUD income definition of up to 80 percent of the area median income (AMI).

Figure 17 and Figure 18 show the distribution of RHNA units by low to moderate income population. As shown in Figure 17, the area with the largest low to moderate income population is also the area with a Hispanic majority, and the overall largest non-White population. This area is also where the R/ECAP is located. Compared to the region, Modesto has slightly lower median income and a slightly higher income disparity.

The City is including Programs A - 9 and A - 10 to incentivize and promote ADU development to increase opportunities for low income households in lower density, high opportunity areas of the City. This includes pre-approved plans, fee exemptions, and increased outreach strategies. Through Program A - 11, the City will facilitate missing middle or middle-income housing and increase the variety of housing choice and opportunity in single-family neighborhoods by encouraging the development of duplexes on corner lots in the R-1 zone.

The City currently allows duplexes on corner lots in the R-1 Zone by right. Program A - 15 will assist homeowners in developing SB 9 units on their properties.

Figure 18 shows the percentage of RHNA units compared to the percent of each block group that is in the low- to moderate-income category. The sites are distributed throughout the various concentrations of the low to moderate income population, with the intention of creating opportunity for low to moderate income residents in higher income areas, and provide new housing opportunities in existing low to moderate income neighborhoods without displacing current residents.

About 50 percent of units, fall in areas where 25 to 50 percent of the population is Low to Moderate income. These sites are primarily in the newly rezoned mixed-use corridors, which can provide new opportunities for high density development, and access to commercial resources and employment.
#20..
- 1090 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 125
Figure 17: Low to Moderate Income Population and RHNA Sites (2021) Source: HCD AFFH Data Viewer
#20..
- 1091 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 126
Figure 18: Low to Moderate Income Population Comparison of RHNA Units Figure 19 shows the number of households with income levels similar to the income ranges provided by HCD Income Limits. The above moderate income category has the largest percentage of the population, while the very low-income category has the smallest population.

The remaining income categories have a more comparable distribution, with the majority of the population being low-income, or higher. Modesto houses the majority of the county-wise support services and resources, indicating why the comparison of the population distribution to the County AMI may show that Modesto residents have generally higher incomes and access to resources or opportunity.
#20..
- 1092 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 127
Figure 19: Households per Income Level, 2021
Source: 2021 ACS Table B19001
According to US Census 2021 American Community Survey estimates, the median household income for Modesto was $70,469. This is only slightly lower than the Stanislaus County median household income of $73,982.

Figure 20 shows median household income by census tract. In Modesto, there are not distinct areas with concentrations of higher median incomes. The lowest median incomes are in the downtown and in the vicinity of the airport. The City is including Programs E - 1 and E - 2 to facilitate place-based improvements and investment in the downtown and southern county islands of Modesto, where there are lower median incomes.

The City is including a number of programs to increase housing types and opportunities in higher resource areas of the City. These efforts go beyond the sites that are included in the Opportunity Site List and help improve housing choice and housing mobility, by providing opportunities to increase the number and type of dwelling units in lower density residential zones.

Per Program A - 2, the City is rezoning parcels on McHenry, Sisk, Oakdale, and Yosemite to new Mixed-Use-Pedestrian (MU-P) and Mixed-Use-Highway (MU-H) zones, and modifying P-D parcels to allow for 45 du/ac in order to create a net new capacity for 21,014 units. This is an added capacity of almost twice the RHNA of 11,248, and almost three times the remaining RHNA need after factoring in pending projects and ADUs. These zoning 10,891
4,574
15,221
16,995
24,094
-
5,000
10,000
15,000
20,000
25,000
30,000
≤ $24,999 $25,000–$34,999 $35,000–$59,999 $60,000–$99,999 ≥ $100,000 Number of Households
Income Range
#20..
- 1093 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 128
amendments are anticipated to be completed in November, 2023. Beyond these zoning amendments, the City is increasing the maximum density of the R-1 zone from 7.5 to 10.9, the R-2 zone from 14.5 to 22, and the maximum density of the R-3 zone from 29 to 45, as noted in Program A - 4. This will create ample opportunity for high density residential development throughout the City.

The City is also including Programs A - 9 and A - 10 to incentivize and promote ADU development to increase opportunities for low income households in lower density, high opportunity areas of the City. This includes pre-approved plans, fee exemptions, and increased outreach strategies. Through Program A - 11, the City will facilitate missing middle or middleincome housing and increase the variety of housing choice and opportunity in single-family neighborhoods by encouraging the development of duplexes on corner lots in the R-1 zone.

The City currently allows duplexes on corner lots in the R-1 Zone by right. Program A - 15 will assist homeowners in developing SB 9 units on their properties. #20..
- 1094 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 129
Figure 20: Median Household Income, 2021
Source: HCD AFFH Data Viewer
Poverty is defined by incomes falling below the annually defined thresholds for family size by the US Census. Poverty status by tract in Modesto is shown in Figure 21. Consistent with the aggregation of LMI areas, tracts with large populations below the poverty level are located around the downtown core as well as the airport. Since the 2010-2014 ACS, the population of #20..
- 1095 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 130
persons experiencing poverty has decreased throughout the City, specifically in the southern portion of the City, which includes the downtown core, as well as in several tracts along the western border. In 2014, tracts in the southern downtown, which include the R/ECAP had rates of poverty over 40 percent. In 2019, this southern downtown region has rates of poverty under 30 percent.

The areas with higher rates of poverty correlate with the areas with more predominant nonWhite concentrations.

The 2015–2019 map shows lower levels of poverty Citywide and increased geographic parity.

The 2015–2019 map also shows that pending projects and proposed Opportunity sites are spread throughout the City with more sites in areas without concentrations of poverty.

Figure 21: Poverty Status (2010-2014 and 2015-2019)
Source: HCD AFFH Data Viewer
Figure 22 shows housing choice voucher (HCV) recipients by tract in the City. The HCV program is a 100 percent federally funded rental subsidy for low-income households living in privately owned rental units. HCV recipients are most concentrated on the western side of the City. The Stanislaus County Housing Authority administers the HCV program in Stanislaus County. The City of Modesto collaborates with the Housing Authority for the development of both rental and homebuyer housing developments. Tracts in the northwestern and eastern City boundary #20..
- 1096 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 131
have low levels of HCV recipients. Concentrations of HCV recipients generally correlate with concentrations of overpaying renters.

The City is including Program D - 6 to continue to support the Housing Choice Voucher Program by promoting the program to eligible households through City website, brochures, newsletters, and referrals.

Figure 22: Housing Choice Voucher Recipients by Tract (2021) Source: HCD AFFH Data Viewer
#20..
- 1097 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 132
Familial Status
Under the Fair Housing Act, housing providers may not discriminate because of familial status.

Familial status covers the following: the presence of children under the age of 18, pregnant persons, and any person in the process of securing legal custody of a minor child (including adoptive or foster parents). Examples of familial status discrimination include refusing to rent to families with children, evicting families once a child joins the family (e.g., through birth, adoption, or custody), or requiring families with children to live on specific floors or in specific buildings or areas. Single-parent households are also protected by fair housing law.

As shown in Figure 23 the tracts with the highest concentrations of children living in marriedcouple households are primarily in northern and eastern Modesto, where incomes are generally higher and there is a less concentrated non-White population. In Modesto, 27.9 percent of households are married-couple households with children present, compared to

30.4 percent countywide. RHNA pending and opportunity sites are distributed throughout the City and are not expected to impact fair housing concerns based on familial status. #20..
- 1098 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 133
Figure 23: Percent of Children in Married Couple Households by Tract (2015-2019) Source: HCD AFFH Data Viewer
Consistent with Figure 23, Figure 24 illustrates that more children in the downtown core of Modesto live in single-parent female-headed households compared to the rest of the City. In 2021, 8,017 households, or 15.6 percent of the total households in Modesto, were femaleheaded households, which is about 3 percent higher than in the County, at 12.4 percent. The #20..
- 1099 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 134
tracts in the downtown with a higher concentration of female-headed households also have a concentration of the LMI and non-White populations.

As shown in Figure 25, RHNA sites are distributed throughout the City, without concentration in areas with high levels of female-headed households, and are not expected to impact fair housing concerns based on familial status. For example, about 50 percent of RHNA units are located in tracts where 0-20 percent of children are living in female-headed households with no spouse.
#20..
- 1100 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 135
Figure 24: Percent of Children in Female-Headed Households and RHNA Sites by Tract (2017-2021)
Source: HCD AFFH Data Viewer
#20..
- 1101 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 136
Figure 25: Female Headed Households Comparison of RHNA Units Persons with Disabilities
The US Census Bureau provides information on the number of persons with disabilities of varying types and degrees. According to the US Census Bureau, a person is considered to have a disability if they have difficulty performing certain functions or difficulty with certain social roles. Affordability of appropriate housing and access, both within the home and to/from the home site, are the primary challenges for persons with disabilities. Access often requires specially designed dwelling units. Additionally, housing locations near public facilities and public transit are important for these special needs group. The 2021 American Community Survey estimates that 13.7 percent of Modesto and 12.2 percent of Stanislaus County has a disability.10
The types of disabilities included in the Census are:
▪ Hearing difficulty: deaf or has serious difficulty hearing ▪ Vision difficulty: blind or has serious difficulty seeing even with glasses ▪ Cognitive difficulty: has serious difficulty concentrating, remembering, or making decisions
10 US Census Bureau, American Community Survey 1-year Data (2021), Table C18101 #20..
- 1102 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 137
▪ Ambulatory difficulty: has serious difficulty walking or climbing stairs ▪ Self-care difficulty: has difficulty dressing or bathing ▪ Independent living difficulty: has difficulty doing errands alone, such as visiting a doctor’s office or shopping
Figure 26 shows an estimate of the number of Modesto residents with disabilities by type of disability and age group. The most prevalent types of disability are ambulatory, cognitive, and independent living difficulty. Note that individuals may have more than one type of disability.

Ambulatory issues are the highest reported disability countywide. A large population with walking difficulty creates a need for single-story housing, elevators, transit access, wheelchair access, larger homes for live-in help, and proximity to health facilities. For many in need of livein help or living assistance, accessory dwelling units (ADUs) may serve as a caregiver unit. The City is including programs to incentivize, encourage, and facilitate ADU production in the City including A - 9: ADU Ordinance Updates, Tracking and Monitoring, A - 10: ADU Incentives, and F - 2: ADU, JADU, and SB 9 Education.

Figure 26: Disability Characteristics by Age Group, Modesto (2019) Source: US Census Bureau, ACS16-19 (5-year Estimates), Table C18108 Figure 27 shows the population of persons with disabilities by tract in the City. There is no clear pattern to the current areas with higher concentrations of the population with a disability.

Health care facilities are evenly distributed throughout the City. 0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
Hearing Difficulty Vision Difficulty Cognitive
Difficulty
Ambulatory
Difficulty
Self-care
Difficulty
Independent
Living Difficulty
Population by Age
Disability Type
< 18 years 18 to 64 years > 65 years
#20..
- 1103 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 138
Figure 27 also shows pending projects and proposed RHNA Opportunity sites with population of persons with disabilities by tract in the City. As shown in Figure 27, the RHNA sites are mostly distributed in the areas where 10 and 20 percent of the population experiences a disability, which covers a majority of the City. For example, about 60 percent of the RHNA units are located in the area where 10-20 percent of the population has a disability. As such, the sites are not expected to cause fair housing concerns as they relate to residents with a disability.

Figure 27: Population of Persons with Disability by Tract (2010-2014 and 2017-2021) Source: HCD AFFH Data Viewer
#20..
- 1104 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 139
Figure 28: Population with a Disability Comparison of RHNA Units Findings
Overall, the City of Modesto has higher concentrations of non-White and low- to moderateincome residents in the southern part of the City, which includes the downtown. Some tracts in this area saw a reduction over time in households under the federal poverty level, from >40 percent in 2010-2014 to 20-30 percent in 2015-2019, while other tracts remained unchanged at 30-40 percent. This area is also where housing choice voucher use primarily occurs. The selected RHNA sites are not anticipated to cause displacement or worsen patterns of segregation.

The City is including Programs E - 1 and E - 2 to facilitate place-based improvements and investment in the downtown and southern county islands of Modesto, where there is a larger non-White population and generally lower median-incomes.

The City is increasing opportunities for higher density housing, mixed-use development through the creation of MU-P and MU-H Zones, and amending of the P-D parcels to allow for higher density development outside of the R/ECAP and in areas of the City that currently have a lower concentration of the non-White and low-income populations. These zoning amendments are anticipated to be completed in November, 2023. Regionally, there is a common correlation between wealth and race, so creating opportunities for lower-income high density housing in these areas may lead to a more even distribution of the population. #20..
- 1105 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 140
The new Mixed-Use Zones and other high density residential amendments are currently being prepared, and are planned and expected to be adopted by the end of 2023. The City is also including Programs A - 9 and A - 10 to incentivize and promote ADU development to increase opportunities for low income households in lower density, high opportunity areas of the City.

This includes pre-approved plans, fee exemptions, and increased outreach strategies. Through Program A - 11, the City will facilitate missing middle or middle-income housing and increase the variety of housing choice and opportunity in single-family neighborhoods by encouraging the development of duplexes on corner lots in the R-1 zone. The City currently allows duplexes on corner lots in the R-1 Zone by right. Program A - 15 will assist homeowners in developing SB 9 units on their properties.

The City is including Program F - 3 to continue efforts to target outreach to the non-White population through providing all material and communications in both English and Spanish.

The City’s RHNA strategy reflects the overall composition of Modesto, and is not expected to negatively exacerbate conditions of segregation.

Racially and Ethnically Concentrated Areas of Poverty and Affluence
R/ECAPs
HUD defines R/ECAPs as areas where the percentage of the population that is non-White is over 50 percent and the percentage of households with incomes below the poverty line is over 40 percent. Alternatively, a neighborhood can be a R/ECAP if it has a poverty rate that exceeds 40 percent or is three or more times the average tract poverty rate for the metropolitan/micropolitan area, whichever threshold is lower.

Modesto has a R/ECAP in Census Tracts 17.00, 21.00, 22.00, and 24.02. The tracts are shown in Figure 29 along with the proposed RHNA sites by their income levels. The tracts include the downtown area with the form based code, the airport, and the southern area which is intermixed with the unincorporated County pockets. Regardless of the RHNA opportunity site selection being primarily outside the R/ECAP, the City anticipated further housing construction and revitalization in the downtown area. The downtown provides opportunities for high density, transit-oriented development near job centers.

As shown in Figure 30, the large majority of RHNA units are located in non-R/ECAP areas. Only

1.2 percent of units are included in the R/ECAP. Despite not including many opportunity sites in the R/ECAP, the City will include several programs, outlined below, to target place-based improvements in the downtown and southern areas beyond the RHNA selection. The location of the RHNA units in or out of the R/ECAP will not exacerbate existing conditions.

The City is including Programs E - 1 and E - 2 to facilitate place-based improvements and investment in the downtown and southern county islands of Modesto, where the R/ECAP is located. These include:
#20..
- 1106 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 141
▪ Identifying necessary improvements in southwest Modesto and downtown through the Urban Planning and Project Management Support Project Support to develop housing downtown and on the municipal golf course.
▪ Providing a Capital Facilities Fees waiver for low-income projects. ▪ Street improvement projects to transform 10th Street into a pedestrian-oriented corridor.
▪ A full pedestrian redevelopment of 9th Street, including Class I bike lines. This is in conjunction with Archway Commons Phase II, a 79-unit housing development on 7th Street.
▪ A redevelopment of the downtown bus station to transform it into a transit hub. This includes preparations for the Altamont Corridor Express, anticipated to begin operations in 2026.
▪ A new courthouse to be opened in 2024, with redevelopment of the former courthouse and county jail as a mixed-use project.
▪ Investing $10 million to upgrade infrastructure in the County Islands such as curb gutters, sidewalks, streetlighting, sewer, water, and storm drains. ▪ Through the Capital Improvement Plan, working with the County to fund sewer connections.
▪ Developing the Southwest Modesto Plan, which will serve as a blueprint for future development, with guidance on land use, economic development, transportation, infrastructure, and other issues for the Southwest Modesto Plan Area The City has also recently completed and is planning for a number of pavement rehabilitation, bike, and pedestrian improvements in the downtown area. These include the following:
▪ Crows Landing Pavement Rehabilitation, from Pecos Avenue (SR 99) to Hatch Road. Construction of the $3 million project was completed in 2022. ▪ Paradise Road Phase I, including pavement, bike, and pedestrian improvements from Carpenter Road to Sheridan Street. Construction of the $2.5 million project was completed in 2022.
▪ Paradise Road Phase II, including, pavement, bike and pedestrian improvements, from Sheridan Street to 1st Street. Funding ($10 million) is scheduled to be awarded on July 11, 2023.

Additionally, Stanislaus County is working to address infrastructure needs within unincorporated developed neighborhoods of the County, including County Islands in the Modesto sphere of influence. In recent years the County has made an effort to guide infrastructure improvements and support the annexation of unincorporated pocket areas to #20..
- 1107 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 142
incorporated cities. This includes prioritizing residential neighborhoods with public health and safety needs with installation of sewer mainlines, and potable water systems.

On May 18, 2021, the Board of Supervisors approved various strategic priorities for the use of $107 million in American Rescue Plan Act of 2021 (ARPA) funding allocated to Stanislaus County. To date of the $107 million, $55.8 million has been assigned to Community Infrastructure – Urban Pockets/County Communities. ARPA funds provide a unique opportunity for Stanislaus County to make substantial progress strategically on the infrastructure needs in its urban pockets and County communities.

After the initial public outreach effort was conducted and a funding distribution method was developed, the County worked with each Supervisor to identify specific seven project areas within the five districts. Of those seven project areas, four of them are within the City of Modesto’s sphere of influence. All improvements are to be designed and installed to City of Modesto standards with the idea of annexation in the future as funding becomes available to provide improvements to the whole community. Any deviation would require City of Modesto approval. The four areas identified for improvement are the following:
▪ Area 9 – Rouse-Colorado: The Rouse-Colorado community is programmed to be receiving sidewalk, storm drainage (including curb and gutter), sanitary sewer, and improvements to its current street lighting. ARPA funds will be used in conjunction with other funding to obtain the necessary funding amount to construct all improvements.

After construction of all improvements, further conversations of annexation can take place between the County and the City.
▪ Area 10 – Bret Harte: The ARPA funds will be invested in close proximity to a County sidewalk project in the Bret Harte community. The community is programmed to be receiving sidewalk, storm drainage (including curb and gutter), and improvements to its current street lighting.
▪ Area 24 – Parklawn: In Parklawn stormwater flows from east to west, so it was determined that the improvements will be constructed west to east. The community is programmed to be receiving sidewalk, storm drainage (including curb and gutter), and improvements to its current street lighting.
▪ Area 44 – Riverdale Park Tract: The Riverdale Park Tract community is programmed to be receiving sidewalk, storm drainage (including curb and gutter), sanitary sewer, and improvements to its current street lighting. Currently there are no water lines in the community of Riverdale, but there is a project that they City of Modesto is spearheading that will install water lines. After construction of all improvements, further conversations of annexation can take place between the County and the City.

These efforts will continue to promote improvements in areas with higher concentrations of the non-White population while promoting housing choice and housing mobility in the less concentrated neighborhoods.
#20..
- 1108 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 143
Figure 29: R/ECAPs in the City and Vicinity
Source: HCD AFFH Data Viewer
#20..
- 1109 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 144
Figure 30: Presence of a R/ECAP Comparison of RHNA Units Racially or Ethnically Concentrated Areas of Affluence (RCAAs) HUD defines Racially Concentrated Areas of Affluence (RCAAs) as areas where the percentage of the White population in a tract is over 1.25 times the average percentage of the White population in the given Council of Government (COG) region and the median income is 1.5 times higher than the COG or State AMI, whichever is lower. At the time of this analysis, there are no RCAAs in Modesto.

Disparities in Access to Opportunities
California Tax Credit Allocation Committee (TCAC)
One tool that can be used to analyze disparities in access to opportunities is the California Tax Credit Allocation Committee’s (TCAC) Opportunity Area scores. These were prepared by a task force commissioned by the TCAC and HCD to identify areas statewide whose economic, educational, and environmental characteristics support positive outcomes for low-income families. The map is updated annually. Opportunity maps are made for three domains:
economic, environmental, and education. Each map uses categorical indicators to determine its individual score. A composite score and resource designation combining all three designations is then assigned to each block group.
#20..
- 1110 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 145
To determine the final resource category, the top 20 percent of overall scores in a county are labeled as highest resource and the next 20 percent of scores are labeled as High Resource.

Then, any area that is considered segregated and that has at least 30 percent of the population living below the federal poverty line is labeled as an area of High Segregation and Poverty. Any remaining uncategorized areas in the County are evenly divided between Moderate Resource and Low Resource areas. The rationale and metric for each indicator is described in more detail in current guidance documents for the California TCAC program.11 Additional information regarding these indicators in Modesto are provided on the following pages.

Economic Indicators
Economic indicators include poverty, adult education, employment, job proximity, and median home value. A complete list of TCAC opportunity map domains and indicators are included in Table 59. TCAC economic scores for the City by tract are presented in Figure 31. The central and northern area of the City, where TCAC economic scores are the highest, have the lowest poverty rates and percentage of LMI households. The neighborhoods in the southern area of the City and the downtown with the lowest economic opportunity also contain the R/ECAP and a more predominant Hispanic or non-White population.
11 https://www.treasurer.ca.gov/ctcac/opportunity/2022/2022-hcd-methodology.pdf #20..
- 1111 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 146
Figure 31: TCAC Opportunity Areas - Economic Score by Tract (2023) Source: HCD AFFH Data Viewer
Education Indicators
Education indicators include math and reading proficiencies of fourth graders, high school graduation rates, and the student poverty rate. The Modesto City Schools is the district that #20..
- 1112 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 147
serves the entirety of the City and consists of 22 elementary schools, 5 middle schools, and 9 high schools.

Greatschools.org is a nonprofit organization that rates schools across the country. The Great Schools Summary Rating calculation is based on four ratings: the Student Progress Rating or Academic Progress Rating, College Readiness Rating, Equity Rating, and Test Score Rating.

Ratings at the lower end of the scale (1-4) signal that the school is “below average,” 5-6 is “average,” and 7-10 is “above average.”
The schools in Modesto range from average to above average, with scores between 5 and 8.

School scores are on average slightly higher in the east than In the western areas of the City, but the difference is minimal, and the scores do not show a clear pattern correlating with fair housing trends.

As shown in Figure 32, tracts in Modesto have high variation in education opportunity resource scores within the City, with less positive scores in the southern and downtown areas, moderate scores in the central areas, and high scores in the areas in the northern and eastern areas of the City. Additionally, the areas with higher poverty rates in the City have a negative effect on TCAC educational scores, as poverty rates are included in this calculation. #20..
- 1113 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 148
Figure 32: TCAC Opportunity Areas - Education by Tract (2021) Source: HCD AFFH Data Viewer
#20..
- 1114 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 149
Environmental Indicators
The environmental domain utilizes CalEnviroScreen (CES) 3.012 pollution indicators and values (see Figure 39 for more discussion on CES). As shown in Figure 33, the majority of the tracts have scores between 0.25 and 0.75, indicating there are average environmental scores throughout most of the City. Tracts with lower environmental scores generally are bisected by a highway, have larger populations of the non-White population, and have lower median incomes. Diesel particulate matter, impaired drinking water, and lead are amongst the highest scoring pollutants in the area, which may be attributed to areas of high traffic or contributions from the agriculture industry surrounding the City.
12 Note that the 2021 TCAC environmental score relies on CES 3.0, rather than the updated CES 4.0. #20..
- 1115 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 150
Figure 33: TCAC Opportunity Areas - Environmental by Tract (2021) Source: HCD AFFH Data Viewer
TCAC Composite Score
Figure 34 displays the 2023 TCAC composite score for the City. There is high variation in resource categories within the City, with low resource or areas of high segregation and poverty #20..
- 1116 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 151
in the southern and downtown areas, moderate resource central areas, and high and highest resource areas in the northern and eastern areas of the City. The areas with lower opportunity scores have a generally lower median income and a more predominant non-White population.

The high and highest resource areas are planned for several upcoming specific plans and zoning amendments which will encourage higher density development in these higher resource areas. These areas include the new mixed-use corridors, which can provide new opportunities for high density development, and access to commercial resources and employment.

The City is including a number of programs to increase housing types and opportunities in higher opportunity areas of the City. These efforts go beyond the sites that are included in the Opportunity Site List and help improve housing choice and mobility, by providing opportunities to increase the number and type of dwelling units in lower density residential zones.

Per Program A - 2, the City is rezoning parcels on McHenry, Sisk, Oakdale, and Yosemite to new Mixed-Use-Pedestrian (MU-P) and Mixed-Use-Highway (MU-H) zones, and modifying P-D parcels to allow for 45 du/ac in order to create a net new capacity for 21,014 units. This is an added capacity of almost twice the RHNA of 11,248, and almost three times the remaining RHNA need after factoring in pending projects and ADUs. These zoning amendments are anticipated to be completed in November, 2023. Beyond these zoning amendments, the City is increasing the maximum density of the R-1 zone from 7.5 to 10.9, the R-2 zone from 14.5 to 22, and the maximum density of the R-3 zone from 29 to 45, as noted in Program A - 4. This will create ample opportunity for higher density residential development throughout the City.

Rezoning will occur across all opportunity categories, with specific geographic targeting in the higher resource areas. About 45 percent of the rezone area (13,774 units) is in high or higher resource areas, creating substantial new opportunities for housing mobility, new housing choices, affordability, and lower-income housing in eastern and northern neighborhoods.

About 33 percent of the land area of the City is in an area of high or highest resource. As about 45 percent of the rezone area is in an area of high or highest resource, the rezone is promoting housing mobility and housing choice in higher resource areas at a disproportionately higher rate than the City’s existing state. The rezone is significant and meaningful enough to overcome currently identified patterns and trends.

The City is also including Programs A - 9 and A - 10 to incentivize and promote ADU development to increase opportunities for low income households in lower density, high opportunity areas of the City. This includes pre-approved plans, fee exemptions, and increased outreach strategies. Through Program A - 11, the City will facilitate missing middle or middleincome housing and increase the variety of housing choice and opportunity in single-family neighborhoods by encouraging the development of duplexes on corner lots in the R-1 zone. #20..
- 1117 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 152
The City currently allows duplexes on corner lots in the R-1 Zone by right. Program A - 15 will assist homeowners in developing SB 9 units on their properties.

The City is including about 27 percent of units in areas of low opportunity or high segregation and poverty. The City is implementing several programs to address place-based improvements in the lower-opportunity areas, such as downtown or southern Modesto. As noted in Program E - 1, the City is contributing to community revitalization and improved quality of life in downtown Modesto through efforts including but not limited to the following:
▪ Currently developing plans to identify necessary improvements in southwest Modesto and downtown through the Urban Planning and Project Management Support Project to develop housing downtown and on the municipal golf course. ▪ Provide a Capital Facilities Fees waiver for low-income projects. ▪ Street improvement projects to transform 10th Street into a pedestrian-oriented corridor.
▪ A full pedestrian redevelopment of 9th Street, including Class I bike lines. This is in conjunction with Archway Commons Phase II, a 79-unit housing development on 7th Street.
▪ A redevelopment of the downtown bus station to transform it into a transit hub. This includes preparations for the Altamont Corridor Express, anticipated to begin operations in 2026.
▪ A new courthouse to be opened in 2024, with redevelopment of the former courthouse and county jail as a mixed-use project.

As noted in Program E - 2, the City is pursuing Place-Based improvements in the islands surrounded by unincorporated County land in southern Modesto. These efforts include but are not limited to
▪ Investing $10 million to upgrade infrastructure in the County Islands such as curb gutters, sidewalks, streetlighting, sewer, water, and storm drains. ▪ Collaborating with Stanislaus County to address any property tax issues as money becomes available to annex “island” properties to Modesto. ▪ Through the Capital Improvement Plan, working with the County to fund sewer connections.
▪ Developing the Southwest Modesto Plan, which will serve as a blueprint for future development, with guidance on land use, economic development, transportation, infrastructure, and other issues for the Southwest Modesto Plan Area.

As shown in Figure 35, the RHNA units are distributed throughout all resource areas, with about 60 percent of units in a high or highest resource area, and about 25 percent in a low resource area or area of high segregation and poverty. As there is high variation in the City, #20..
- 1118 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 153
distributing RHNA units across all opportunity categories is unlikely to exacerbate any conditions or make any negative changes to the resource designation. Including RHNA sites in the new mixed-use zones across higher opportunity designated areas will increase housing mobility for lower-income households throughout the City.

Figure 34: Site Inventory and TCAC Composite Score by Tract (2023) Source: HCD AFFH Data Viewer
#20..
- 1119 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 154
Figure 35: Distribution of RHNA Units by TCAC Category
Access to Opportunities, Regional Comparisons
HUD has developed a series of indices for fair housing analysis to assist cities in identifying disparities in access to opportunity. The following indicators are scored on a scale from zero to 100.
13 ▪ Low Poverty Index: The low poverty index captures poverty at the census tract level.

The higher the score, the less exposure to poverty.
▪ School Proficiency Index: The school proficiency index uses the performance of fourth-grade students on state exams to describe which areas have higher and lower performing schools. The higher the score, the higher the school system quality. ▪ Labor Market Index: The labor market index measures the relative intensity of labor market engagement and human capital. The index is calculated using employment levels, labor force participation, and education attainment. The higher the score, the higher the labor market participation in a neighborhood. ▪ Transit Index: The transit index is based on estimates of transit trips taken by a threeperson, single-parent family with income at 50 percent of the median income for 13 HUD Affirmatively Furthering Fair Housing Data and Mapping Tool (AFFH-T) Data Documentation #20..
- 1120 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 155
renters for the region. The higher the index, the more likely that the residents use public transit.
▪ Low Transportation Cost Index: The low transportation cost index is calculated based on estimates for a three-person, single-parent family with income at 50 percent of the median income for renters for the region. More specifically, this index considers transportation costs as a percentage of income for this household type. The higher the index, the lower the cost of transportation.
▪ Jobs Proximity Index: The jobs proximity index quantifies the accessibility of a given residential neighborhood as a function of its distance to all job locations within a region.

Larger employment centers are more heavily weighted. The higher the index, the better access to employment opportunities.
▪ Environmental Health Index: The environmental health index summarizes potential exposure to a variety of toxins that are harmful to human health. The higher the index, the less exposure to toxins.

As shown in Table 59, the most variation between different ethnicities in Modesto is seen in the low poverty index, with the Hispanic population at 28.8 while the Asian and White populations score 40.3 and 39.5 respectively. The labor market index also shows similar patterns of variation.

Compared to the wider Stanislaus County region as a whole, Modesto scores comparatively or higher for almost all groups, with the exception of the environmental health index. Modesto proves to have much higher availability of transit, transportation, and jobs than the Countywide average. Modesto includes many of the resources and economic opportunities that serve the region as a whole.
#20..
- 1121 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 156
Table 59: Opportunity Indicators14
Low
Poverty
Index
School
Proficiency
Index
Labor
Market
Index
Transit
Index
Low
Transportation
Cost Index
Jobs
Proximity
Index
Environmental
Health Index
Modesto
White 39.5 33.1 28.8 62.4 42.8 61.2 24.9
Black 32.8 29.6 23.1 62.0 42.5 59.1 24.8
Hispanic 28.8 24.0 19.2 62.5 41.4 57.2 24.4
Asian or
Pacific
Islander

40.3 34.0 28.3 59.8 40.3 53.2 25.8
Native
American 32.8 29.0 23.2 63.7 43.5 62.6 24.4
Stanislaus County
White 35.3 35.5 22.0 27.3 27.1 34.9 35.4
Black 33.7 29.1 18.0 30.7 27.3 31.6 36.3
Hispanic 28.6 26.7 15.2 33.6 29.2 36.0 33.0
Asian or
Pacific
Islander

38.8 31.0 22.0 34.6 27.1 38.7 31.1
Native
American 32.7 32.2 19.2 32.5 28.2 35.8 33.5
Source: Decennial Census; American Community Survey; Great Schools; Common Core of Data; School Attendance Boundary Information System; Local Affordability Index; Longitudinal Employer Household Dynamics; National Air Toxics Assessment Transportation
Access to adequate transportation and a variety of transit options can help illustrate disparities in access to opportunities.

As shown in Figure 36, City of Modesto and Stanislaus County have nearly identical mode shares for transportation to work. A majority of workers (80 percent) drive alone to work, followed by 10 percent who carpool. Only about 1 percent of workers use public transportation or bike/walk to work.
14 HUD Affirmatively Furthering Fair Housing. https://egis.hud.gov/affht/ #20..
- 1122 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 157
Figure 36: Means of Transportation for Work - Modesto (2020) Source: US Census Bureau, ACS 16-20 (5-year Estimates), Table B08301 Stanislaus Regional Transit Authority (StanRTA) is the transit agency that operates services in Modesto and Stanislaus County. Services include commuter bus (3 routes), fixed route bus (25 routes), and Dial-A-Ride (3 service areas). Transit routes and service areas for Modesto are shown in Figure 37. StanRTA routes provide a quality transportation option for Modesto residents as well as regional connections to the Bay Area and neighboring cities.

80.9% 80.6%

10.1% 10.4%

5.6% 5.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
City of Modesto Stanislaus County
Drove Alone Carpooled
Public Transportation (Excluding Taxi) Bicycle or Walked Other Means (+Taxi and Motorcycle) Worked From Home
#20..
- 1123 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 158
Figure 37: StanRTA Service Area in Modesto (2023)
There is one major transit center located in downtown Modesto and four High Quality Transit Areas identified by Caltrans throughout the City (see Figure 38). The areas where the opportunity sites are primarily located, along the new Sisk and McHenry Mixed-Use Zones are considered high quality transit areas, and the majority of RHNA units are in areas with high quality access to transit. Downtown, where the R/ECAP is located, also has high quality transit access.
#20..
- 1124 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 159
Figure 38: High Quality Transit Areas, 1/2 mile (2022)
Source: HCD AFFH Data Viewer
CalEnviroScreen 4.0
CES 4.0 is a tool that identifies communities in California that are disproportionately burdened by pollutants. Factors used to identify communities include ozone, particulate matter, drinking #20..
- 1125 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 160
water contaminants, pesticide use, lead, diesel particulates, asthma rates, and linguistic isolation. A higher score indicates a higher effect of pollutants for the area.

The California Office of Environmental Health Hazard Assessment (OEHHA) compiles data to help identify California communities that are disproportionately burdened by multiple sources of pollution. In addition to environmental factors (pollutant exposures, groundwater threats, toxic sites, and hazardous materials exposure) and sensitive receptors (seniors, children, persons with asthma and low birth weight infants), CalEnviroScreen also takes into consideration socioeconomic factors. These factors include education attainment, linguistic isolation, poverty, and unemployment.

The CES scores for the City of Modesto in Figure 39 show that the highest scores occur in the southern and downtown areas of the City, where the R/ECAP is located. CES scores are lower in the east. Tracts with higher CES scores generally are bisected by a highway, have larger populations of the non-White population, and have lower median incomes. Diesel particulate matter, impaired drinking water, and lead are amongst the highest scoring pollutants in the area, which may be attributed to areas of high traffic or contributions from the agriculture industry.

As shown in Figure 40, RHNA pending projects and opportunity sites are distributed throughout the higher scoring categories, which also compose the majority of the City. For example, about 25 percent of RHNA units are located in a tract in the 40-60 CES Percentile, about 40 percent of RHNA units are located in a tract in the 60-80 CES Percentile, and about 30 percent of RHNA units are located in a tract in the 80-100 CES Percentile. RHNA sites in these areas will provide residents with access to transit and employment resources. #20..
- 1126 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 161
Figure 39: Sites Inventory and CalEnviroScreen 4.0 Percentile Score by Tract Source: HCD AFFH Data Viewer
#20..
- 1127 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 162
Figure 40: Distribution of RHNA Units by CalEnviroScreen 4.0 Percentile Score Findings
There is high variation in resource categories within the City, with low resource or areas of high segregation and poverty in the southern and downtown areas, moderate resource central areas, and high and highest resource areas in the northern and eastern areas of the City. A similar pattern is shown in the CalEnviroScreen percentiles, with improved scores further from downtown. As such, the RHNA units are distributed throughout all resource areas, with about 60 percent of units in a high or highest resource area, and about 25 percent in a low resource area or area of high segregation and poverty.

Disproportionate Housing Needs
Substandard Housing
The AFFH Rule Guidebook defines disproportionate housing needs as a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing needs when compared to the proportion of a member of any other relevant groups or the total population experiencing the category of housing need in the applicable geographic area (Code of Federal Regulations). The analysis is completed by assessing cost burden, overcrowding, and substandard housing. The Comprehensive Housing #20..
- 1128 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 163
Affordability Strategy (CHAS) developed by the Census for HUD provides detailed information on housing needs by income level for different types of households in Stanislaus County.

Disproportionate housing needs are determined by finding trends in housing problems in the population by race, household size, or household age. A housing unit is considered substandard or having a housing problem if it has one or more of the following housing conditions:
▪ Housing unit lacks complete kitchen facilities
▪ Housing unit lacks complete plumbing facilities
▪ Household is cost burdened
▪ Housing unit is overcrowded
Large and elderly households are often more likely to experience housing problems. A large household is a household with three or more children, but is also often calculated as a household with five or more people. An elderly household is calculated as any household with a person over 62 years of age.

Pacific Islander owners, and White, Black, and Hispanic renters experience right rates of housing problems, over 50 percent, while less than 30 percent of White, Asian, and Native American owners experience housing problems. Rates of housing problems are relatively comparable for each group at the County and City level, with large household renters experiencing the highest rates of housing problems in Modesto and Countywide. #20..
- 1129 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 164
Figure 41: Housing Problems by Tenure and Race/Elderly/Housing Size Source: HUD CHAS Data, 2019
Cost burden is when a household spends more than 30 percent of its monthly income on housing costs such as rent, mortgage, or utilities. Large households have more costs to support more people, and may experience cost burden or a lack of excess funds to amend housing problems. Elderly households may be on a fixed income, which affects excess funds necessary for maintenance in an older home bought before retirement. #20..
- 1130 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 165
Figure 42: Cost Burden by Tenure and Race/Elderly/Housing Size Source: HUD CHAS Data, 2019
Cost-burdened owners and renters by tract are compared using the 2010-2014 and 2017-2021 ACS data in Figure 43 and Figure 44. Tracts throughout the City have increased or decreased in rate of overpayment for owners since 2014, with the most notable changes being the increase in northern downtown and southern Modesto, and the decrease in southern downtown, near the Modesto airport, and along Sisk Road. Rates of overpayment for renters have remained consistently high in southern Modesto, and overpayment has decreased in many areas of western Modesto, while increasing in several areas of eastern Modesto. Most current areas of concentration of overpayment do not have a strong correlation with racial or income trends. However, the areas in southern Modesto and downtown with high concentrations of overpayment also contain the R/ECAP.

Overpayment in the City occurs at a similar rate to the County, with 38 percent of households experiencing a cost burden Citywide, compared to 36 percent in the County. In both cases, renters have significantly higher rates of overpayment than owners. #20..
- 1131 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 166
Figure 43: Overpayment by Owners (2010-2014 and 2017-2021) Source: HCD AFFH Data Viewer
#20..
- 1132 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 167
Figure 44: Overpayment by Renters (2010-2014 and 2017-2021) Source: HCD AFFH Data Viewer
Overcrowding
A household is considered overcrowded when there is more than one person per room, including living and dining rooms but excluding bathrooms and kitchens. Overcrowding can affect public facilities and services, reduce the quality of the physical environment, and create conditions that contribute to deterioration of the housing stock. Additionally, overcrowding can indicate that a community does not have an adequate supply of affordable housing and/or variety of suitable housing units to meet the needs of the community.

In Modesto, areas with high concentrations of overcrowding have generally lower median incomes and higher rates of the non-White population.
#20..
- 1133 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 168
Figure 45: Sites Inventory and Overcrowded Households by Tract (2017-2021) Source: HCD AFFH Data Viewer
Overcrowding is slightly less prevalent in Modesto (5.9%) than in the County as a whole (6.9%).

Overcrowding is more prevalent for renters than owners both in the City and regionwide. #20..
- 1134 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 169
Table 60: Overcrowding by Tenure (2019)
Jurisdiction Persons
/Room
Owners Renters Total
Overcrowded
Households
% of Total
Population
Overcrowded
Households
% of Total
Population
Overcrowded
Households
% of Total
Population
Modesto

1.01 to

1.5 1,014 1.4% 2,195 3.0% 3,209 4.4%
>1.50 325 0.4% 728 1.0% 1,053 1.5%
Total
Overcrowded1,339 1.9% 2,923 4.0% 4,262 5.9%
Stanislaus
County

1.01 to

1.5 3,428 2.0% 5,775 3.3% 9,203 5.3%
>1.50 1,145 0.7% 1,668 1.0% 2,813 1.6%
Total
Overcrowded4,573 2.6% 7,443 4.3% 12,016 6.9%
Source: HUD CHAS Data, 2019
Homelessness
Data on homelessness in Stanislaus County is based on the 2023 Point-in-Time Count (PITC), information provided to HUD by the Stanislaus Community System of Care (CSOC), and the Stanislaus Homeless Alliance (SHA). The PITC provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. A follow-up survey sampling of unsheltered and sheltered individuals is conducted two weeks following the count.

The count was conducted on January 26, 2023.

Stanislaus County had an estimated homeless count of 2,091, 949 of which were unsheltered.

Of this homeless population, 231 were children under the age of 18. There were 1,642 homeless persons surveyed in Modesto, 441 of which were unsheltered. Modesto’s homeless population accounts for 79 percent of all homeless persons in the County. Modesto’s larger share of the homeless population reflects its larger share of the total county populations (approximately 40 percent) and the availability of and access to more resources.

Table 61 shows the change in the sheltered/unsheltered population by city in Stanislaus County between 2020 and 2023. During this period, only four of the fifteen jurisdictions experienced an increase in the homeless population. The homeless population in Modesto increased by 3 percent during this period.
#20..
- 1135 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 170
Table 61: Homeless Population by Jurisdiction (2020-2023) Homeless Population 2020 %
Change 2022 % Change 2023 % Total
Modesto 1,592 -10.0% 1,433 14.6% 1,642 78.5%
Turlock 232 -9.1% 211 10.4% 233 11.1%
Patterson 78 -29.5% 55 21.8% 67 3.2%
Empire 77 -9.1% 70 8.6% 76 3.6%
Oakdale 36 -27.8% 26 -15.4% 22 1.1%
Ceres 29 -48.3% 15 13.3% 17 0.8%
Riverbank 26 -30.8% 18 0.0% 18 0.9%
Newman 21 -42.9% 12 -50.0% 6 0.3%
Denair 7 - - - - -
Waterford 6 66.7% 10 -60.0% 4 0.2%
Salida 2 - - - - -
Hughson 1 0.0% 1 200.0% 3 0.1%
Keyes 0 - 4 -25.0% 3 0.1%
Crows Landing - - 1 - - -
Westley - - 1 - - -
Stanislaus County Total 2,107 -11.9% 1,857 12.6% 2,091 100.0% Source: 2020 & 2023 Stanislaus County Homeless Point-in-Time Count Executive Summary.

Table 62 lists emergency shelters and transitional housing in Modesto. There are thirteen facilities with 896 total beds for persons experiencing homelessness in the City. Modesto is the county seat and largest City in Stanislaus County; therefore, Modesto is the central point for many supportive services for homeless individuals.

The City funds shelter activities through CDBG Public Services and ESG funds. The City partners with shelter providers in Modesto, such as The Salvation Army, to provide emergency and low barrier shelter services to homeless individuals. The Access Center Emergency Shelter (ACES) is a low-barrier shelter (drug and alcohol testing are not required to enter) serving individuals who choose to enter an emergency shelter. ACES is designed to allow homeless individuals to enter with pets, partners, and possessions, which are often-cited impediments that individuals have when entering a homeless shelter.
#20..
- 1136 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 171
Table 62: Shelter Facilities in or Adjacent to Modesto
Facility Name Type of Facility Target Population Number of Shelter Beds
Bennett Place Shelter
Serious mental illness
and Serious emotional
disturbance
18 Center for Human
Services Emergency shelter Individuals 6
Children’s Crisis Center Emergency shelter Abused, neglected and high risk children 35
Community Housing &
Shelter Services (CHSS) Emergency shelter Individuals 180 Empire Migrant Center* Cold weather shelter Families 90 Family Promise of
Greater Modesto Emergency shelter Families 14
Haven Women’s Center Emergency shelter
Woman and their
children fleeing
domestic or sexual
violence
13 Modesto Gospel Mission Emergency shelter Individuals and families 135 Salvation Army –
Berberian Shelter Emergency shelter Individuals 180
Salvation Army – ACES
Shelter Emergency shelter Individuals 182
Turning Point Emergency shelter Families 11
Women's Rest Shelter Individuals 5
Youth Navigation Center
of Stanislaus County –
Low Barrier Shelter
Transitional housing,
crisis/drop-in and shelter
and low-barrier shelter
Young adults ages 13 -
24 24
Total 896
* Outside of Modesto City limits
Source: Modesto Annual Action Plan FY 2022-2023
#20..
- 1137 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 172
The City of Modesto has a number of efforts aimed at reducing and ending homelessness. A number of these efforts are outlined in the 2023-2024 Draft Annual Action Plan15. These include:

1. Camp2Home. Through the Camp2Home initiative, Modesto created a unique set of partnerships and funding that creates a continuous, streamlined process to bring individuals out of the cycle of homelessness. The Community Health and Assistance Team (CHAT) is a partnership with the Modesto Police department that is designed to use trained Outreach Specialists to respond to qualifying 911 calls that are received through the 911 communications center for mental health crises and similar noncriminal, non-violent incidents.

The Downtown Streets Team (DST) is a partnership with the local ACES and Berberian Shelters. The DST is a key component of the Camp2Home program in helping individuals to attain permanent housing is assisting them in obtaining job training and job placement. In this effort, the City of Modesto has partnered with the Downtown Streets Team (DST), a non-profit organization that creates a safe and engaging space to train homeless individuals. A rental subsidy administered by DST allows the individuals that placed in full time employment to also receive rapid rehousing opportunities with continued case management to ensure success in housing and employment.

2. Center for Human Services (CHS). CHS conducts street outreach to unsheltered homeless youth. Through street outreach, CHS engages with homeless youth and connect them to resources including housing at CHS’ Hutton House, a runaway and homeless youth shelter (ages 13-17), and Pathways, a transitional living place for older youth (ages 18-21).

3. Community Assessment, Response, and Engagement (CARE) Multidisciplinary (MDT) personnel strategy. The CARE team is a joint strategy from the City of Modesto and Stanislaus County. The CARE team is made up of staff that are capable of engaging individuals and households in crisis, distressed in the moment for any number of reasons relating to mental or physical health. The CARE team conducts regular outreach and engagement with what are most often the hardest to reach individuals and households. The CARE team activity is tracked in detail through the CoC and its reporting. The City will continue to be a partner in the CARE team program in efforts to increase outreach and engagement to homeless households and individuals.

4. Hospital Council’s Stanislaus County Partnership. This partnership has the goal of streamlining hospital discharges to Emergency Shelters that are ready and equipped to handle the level of care needed for an individual client. This serves to decrease the number of homeless individuals being discharged to the street. 15 City of Modesto 2023-2024 Annual Action Plan Draft.
https://www.modestogov.com/ArchiveCenter/ViewFile/Item/3774 Accessed May 30, 2023. #20..
- 1138 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 173
As a part of the Camp2Home efforts, the City maintains an Outreach Dashboard that monitors the outreach, accepted services, and denied services. Per the online dashboard, as of May 30, there have been 5,484 contacts and 4,700 accepted services. The type of services provided are also monitored on the dashboard and include health services (112 provided), basic needs (3,200 provided), vital documents (457 provided), and case management (1,100 provided). The dashboards tracks demographics such as age, years of homelessness, gender, and ethnicity.

It also tracks barriers such as alcohol abuse, drug abuse, mental health, and chronic health conditions. The dashboard provides comprehensive data regarding individuals experiencing homelessness and the services that are utilized the most. Table 63 displays the services provided and percent of total services for each type of service. The most common services provided were basic needs, shelter services, and case management referrals.

Table 63: Camp2Home Services Provided
Services Provided Total Percent Of
Total
Basic Needs 2,993 39.8%
Shelter Services 1,661 22.1%
Case Management Referral 1,129 15.0%
Transportation Services 474 6.3%
Vital Documents 453 6.0%
Pets 288 3.8%
Housing 173 2.3%
Health Services 110 1.5%
Income/Benefits 94 1.3%
Education 66 0.9%
Covid Services 51 0.7%
Employment 19 0.3%
Assisted Technology 7 0.1%
LGBTQ Services 2 0.0%
Total 7,520 100%
Source: City of Modesto
The City is continuing its Camp2Home Program and homelessness funding efforts through Program D - 2.

Displacement
The Urban Displacement Project at the University of California, Berkeley, developed a map of “sensitive communities” where residents may be particularly vulnerable to displacement in the #20..
- 1139 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 174
event of increased redevelopment and drastic shifts in housing cost. Sensitive communities are defined based on the following set of criteria:
▪ The share of very low-income residents is above 20 percent. ▪ The census tract must also meet two of the following criteria:
o The share of renters is above 40 percent.
o The share of people of color is above 50 percent.
▪ The share of very low-income households (50 percent AMI or below) that are severely rent burdened is above the county median.
▪ The census tract, or areas in close proximity, have been experiencing displacement pressures. Displacement pressure is defined as:
• The percentage change in rent in a selected census tract, divided by county median rent increases OR
• Median rent in a selected census tract, minus median rent for all surrounding tracts, divided by median rent for all tracts in county (rent gap).

Figure 46 shows the areas vulnerable to displacement as identified by the Urban Displacement Project. Of the 50 census tracts in the City, 15 are identified with some level of displacement risk. There are three tracts in the City of Modesto that have been identified as having one income group that is experiencing elevated, high, or extreme displacement risk and three tracts that have been identified as having two income groups that are experiencing elevated, high, or extreme displacement risk. These tracts with the highest displacement risk are located in the southern part of the City which includes downtown and surrounding neighborhoods.

There are two pending projects in the areas with two income groups having elevated displacement risk. There are no RHNA sites identified in the areas with a displacement risk that have any existing housing units, and RHNA site distribution is not expected to increase any risk of displacement. The City is including Displacement Prevention Program E - 4 to ensure that all households that are displaced are provided housing at equal affordability levels as the demolished housing.
#20..
- 1140 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 175
Figure 46: Estimated Displacement Risk (2022)
Source: HCD AFFH Data Viewer
Findings
Overall, the City of Modesto experiences housing problems and cost burden at a comparable rate to the region as a whole. Overcrowding is slightly less prevalent in the City of Modesto #20..
- 1141 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 176
compared to Stanislaus County. The City is including Displacement Prevention Program E - 4 to ensure that all households that are displaced are provided housing at equal affordability levels as the demolished housing.

The City is continuing its support to persons experiencing homelessness through its Camp2Home Program and homelessness funding efforts outlined in Program D - 2.

Other Contributing Factors
Land Use History
Similar to many towns in San Joaquin Valley, Modesto was founded as a stop on the Central Pacific Railroad connecting Sacramento to Los Angeles. The Central Pacific Railroad and the subdivided and sold lots gave shape to Modesto’s downtown layout (an approximately 640- acre tract). Modesto's population exceeded 1,000 residents in 1884. Surrounded by fields of grain and the nearby Tuolumne River used for grain barges, along with railroad traffic, the town grew. Irrigation water came from dams installed in the foothills, and irrigated fields of agriculture flourished.

In 1885, Modesto was the first city in United States to use a zoning ordinance to effectively segregate its Chinese residents. The ordinance mandated that laundries, nearly all Chinese owned, must be located west of the railroad tracks and south of G Street, in an area already known as Chinatown. Non-Chinese laundry owners were given an exemption. Historians see this as the first use of a city ordinance to mandate segregation.

By 1900, Modesto's population was more than 4,500. During World War II, the area provided canned goods and rations for the US armed forces and Allied forces.

Post-World War II, Modesto saw economic decline in the downtown so severe that by the 1970s, efforts were made to revitalize downtown, similar to efforts elsewhere in the country.

Older buildings were demolished to make way for new buildings, such as the Stanislaus County Library and the former offices of Stanislaus County. Redevelopment efforts were formalized in the middle 1980s with the establishment of Modesto’s Redevelopment Agency. Projects funded through the Redevelopment Agency included the construction of a downtown hotel and convention complex at 9th and K Streets and the expansion of government offices.

Despite these efforts, the City continued to expand outward. Many downtown businesses relocated to the 83-acre Vintage Faire mall outside of downtown.

By 1980, Modesto had grown to 107,000 residents. This rapid growth concerned the public and through the next election the focus was the redevelopment of downtown. From the early 2000s on, downtown Modesto continued to see investment that supported the City’s strong arts community, which has helped stabilize and revitalize the City. #20..
- 1142 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 177
Patterns of Annexation
The southern area of Modesto includes a number of unincorporated islands and pockets.

These areas are not in the City of Modesto, but border the City and in some cases are completely surrounded by the City of Modesto. Due to the patterns of annexation and location of the boundary between the City and County, there are disparities in infrastructure quality of roads, sidewalks, and sanitary sewer in the southern parts of the City. In these areas, there are inconsistent providers of services, as some areas are served by the City and some are served by the County. The inconsistent pattern of services creates disparities between areas served by the City and areas served by the County. The unincorporated County islands lack services, quality sidewalks, and lighting. Additionally, the unincorporated areas tend to have the highest percentage of units that lack complete plumbing. Compared to the areas in the City, the unincorporated County islands are underserved. The inconsistent patterns of service and annexation contribute to a pattern of disparities in access to services and infrastructure.

The City is working with the County to improve the provision of services in this area. Placebased efforts in downtown Modesto, southwest Modesto, and the County Islands are outlined in Programs E - 1 and E - 2. These include long-range planning efforts to identify necessary improvements in southwest Modesto and downtown through the Urban Planning and Project Management Support Program, which aims to develop housing downtown and on the municipal golf course. Additionally, the City of Modesto is developing the Southwest Modesto Plan, which will serve as a blueprint for future development, with guidance on land use, economic development, transportation, infrastructure, and other issues for the Southwest Modesto Plan Area.

The City has been coordinating with Stanislaus County to extend sewer mains and services to areas that are on septic systems. The City has made efforts to prioritize low-income and disadvantaged areas, not only in coordinating with sewer improvements with the County, but also for any necessary water system improvements. Coordination ensures that any needed underground work is done before roadway improvements. Neighborhoods include Airport, Parklawn, and Shackelford. The Utilities Department is currently conducting phases of work in Spencer-Marshall and Rouse-Colorado neighborhoods, and is planning future improvement projects in parts of West Modesto, and the Bret-Harte, and Riverdale neighborhoods.

In Riverdale, the Utilities Department is working with the State and a third party to replace 80 percent of the existing water system, destroy a bad groundwater well, and permanently tie Riverdale into the City of Modesto’s water system. The City will then own and operate the water system in that area and Riverdale residents will become Modesto water customers. This work is funded by a grant.

The Utilities Department is also working with a consultant to obtain a grant for a project that would pay to extend sewer laterals from installed main stub outs at property lines to individual houses as well as remove the septic systems without charge to the homeowner. The cost of the 20 – 50 feet of sewer lateral installation needed on private property, removal of the septic #20..
- 1143 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 178
system, and connection fee acts as an obstacle for homeowners from transitioning from septic systems to the City’s sewer services. If obtained, the grant would remove a financial obstacle and help more homes to connect to City sewer.

As discussed in the R/ECAP section of this chapter above, Stanislaus County is working to address infrastructure needs within unincorporated developed neighborhoods of the County, including County Islands in the Modesto sphere of influence that have not been annexed into the City. This includes prioritizing residential neighborhoods with public health and safety needs with installation of sewer mainlines, and potable water systems.

On May 18, 2021, the Board of Supervisors approved various strategic priorities for the use of $107 million in ARPA funding allocated to Stanislaus County. To date, of the $107 million, $55.8 million has been assigned to Community Infrastructure – Urban Pockets/County Communities.

ARPA funds provide an opportunity for Stanislaus County to make substantial progress strategically on the infrastructure needs in its urban pockets and County communities and address the disproportionate quality of services in the County Islands and surrounding areas.

The County worked with each member of the Board of Supervisors to identify specific seven project areas within five districts. Of those seven project areas, four of them are within the City of Modesto’s sphere of influence. All improvements are to be designed and installed to City of Modesto standards with the idea of annexation in the future as funding becomes available to provide improvements to the whole community.
#20..
- 1144 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 179
Fair Housing Issues, Contributing Factors, and Meaningful Action The City has adopted goals and actions that specifically address the contributing factors identified in the AFFH analysis. While the City views all contributing factors as important, higher priority was given to factors that limits fair housing choice and/or negatively impact fair housing per Government Code section 65583(c)(10)(A)(iv).

Table 64 displays the identified fair housing issue, contributing factor, actions taken to address the contributing factor, and priority level for each issue. Relevant programs are referenced in the action column for each contributing factor.

Table 64: Contributing Factors
Identified Fair Housing Issue Contributing Factor Action Priority Outreach and Enforcement
• Access to
materials in
appropriate
languages
• Source of
income
disparity
• Fair Housing Counseling (E - 3)
• Housing Choice Vouchers (D - 6)
• Bilingual Materials (F - 3)
• Housing Outreach and Information (F - 4)
Low
Integration and Segregation
• Lack of public
investment in
specific
neighborhoods
(County
Islands)
• Source of
income
disparity
• Lack of variety
of housing
types
• Rezoning Plan (A - 2)
• General Plan and Zoning Density Increases (A - 3)
• Housing Trust Fund (A - 8)
• ADU Incentives (A - 10)
• Missing Middle / Middle Income Housing
(Duplexes) (A - 11)
• SB 9 Ordinance Processing / Incentives (A - 15)
• Affordable Housing Resources (D - 5)
• Housing for Extremely/Very Low Income
Households (D - 8)
Moderate
#20..
- 1145 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 180
Identified Fair Housing Issue Contributing Factor Action Priority Disparities in Access to Opportunities
• Lack of public
investment in
specific
neighborhoods
(County
Islands)
• Disparities in
access to
water and
sewer
infrastructure
• Presence of a
R/ECAP
• Lower income
housing
capacity in
northern or
central
Modesto
• Rezoning Plan (A - 2)
• General Plan and Zoning Density Increases (A - 3)
• Consolidated Plan (A - 6)
• ADU Incentives (A - 10)
• Missing Middle / Middle Income Housing
(Duplexes) (A - 11)
• SB 9 Ordinance Processing / Incentives (A - 15)
• Place-Based Improvements – Downtown (E - 1)
• Place-Based Improvements – County Islands
(E - 2)
High
Disproportionate Housing Needs
• Disparities in
access to
water and
sewer
infrastructure
• Availability of
affordable
housing
options
• Rezoning Plan (A - 2)
• General Plan and Zoning Density Increases (A - 3)
• Consolidated Plan (A - 6)
• Housing Trust Fund (A - 8)
• Housing for Persons with Disabilities / Reasonable
accommodation Procedure (B - 7)
• Preserving Units at Risk of Conversion (C - 1)
• Mobile Home Rent Stabilization (C - 2)
• Homeowner Repair Assistance (C - 3)
Moderate
#20..
- 1146 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 181
Identified Fair Housing Issue Contributing Factor Action Priority • Increased
needs of
homeless
population
• Community System of Care (D - 1)
• Camp2Home and Homelessness Funding (D - 2)
• Affordable Housing Resources (D - 5)
• Displacement Prevention (E - 4)
Table 65 provides a detailed overview of actions included in Housing Element Programs that are aimed at affirmatively furthering fair housing. The table separates the actions by their identified fair housing issue and priority level. It summarizes the specific commitment, timeline, geographic targeting, and metric for each program. #20..
- 1147 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 182
Table 65: AFFH Action Matrix
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
Fair Housing Outreach and Enforcement
Fair
Housing
Counseling
(E - 3)
The City shall continue to provide funds to and contract with Project Sentinel, or an agency that provides similar services, to provide fair housing assistance including landlord/tenant counseling.

The City shall disseminate information about fair housing assistance through pamphlets in Cityowned buildings and other public locations (e.g., City Hall, library, post office, other community facilities) and by posting information on the City website. Pamphlets will be made available in English and Spanish.

Ongoing Citywide
Provide
information
to 30
households
annually
Housing
Choice
Vouchers
(D - 6)
The Housing Choice Voucher Program for very low-income households is administered by the Stanislaus County Housing Authority. The City of Modesto collaborates with the Housing Authority for the development of both rental and homebuyer housing developments. The City will support the Housing Choice Voucher Program by promoting the program to eligible households through City website, brochures, newsletters, and referrals.

Annually Citywide
Promote the
HCV program
to 50
households
annually.

Bilingual
Materials
(F - 3)
The City will continue its efforts to provide presentations, materials, and communications in both English and Spanish. In a continued effort to maximize inclusivity, productivity and engagement, the City of Modesto utilizes Wordly, a language interpretation tool. Wordly provides real-time interpretation services so that each City Council meeting participant can choose from several interpretation languages. Instructions on how to use Wordly are available on the City’s website.

The full housing element is also being translated into Spanish and will be posted along with the English version of the housing element.

The City will review its demographics every five years to determine if translations in other languages are appropriate.

Review
demographics
every five
years.

Downtown,
County
Pockets
Minimum of
3 mediums
of outreach
Housing
Outreach
and
The City shall provide information about housing assistance, fair housing, housing resources, and housing programs through a wide variety of outreach methods such as:

Update the
City website
with housing
Citywide Outreach to
250
#20..
- 1148 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 183
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
Informatio
n (F - 4)
▪ Conducting workshops and webinars by partnering with community-based organizations to inform residents of housing resources, assistance programs, and funding opportunities, on a monthly basis on average.
▪ Disseminating information about fair housing in City-owned buildings and other public locations (e.g., City Hall, Library, post office, other community facilities) and by posting information on the City website. Pamphlets will be made available in English and Spanish. ▪ Advertising housing assistance information on the City website, through the compilation of resources for rental assistance, down payment assistance, and other means of retaining existing housing or acquiring a new home.
▪ Coordinating with the City’s Fair Housing Service Provider to provide resources and information at a housing resources event in the downtown area.
information
as new
resources
become
available
households
annually
New Opportunities in High Resource Areas
Housing
Trust
Funds
(A - 8)
The City is currently developing a Housing Trust Fund utilizing $500,000 of American Rescue Plan Act funds. The Housing Trust Fund policies and programs are in development with anticipated adoption in 2023.

Anticipated uses for the Housing Trust Fund may include, but are not limited to, new construction, acquisition and/or rehabilitation, and subsidy, or other means to assist other governmental agencies, nonprofit groups and private organizations or individuals in creating or maintaining affordable housing.

Adoption by
Q1, 2024. Citywide
Increased
variety of
funding for
affordable
housing
projects
Incentives
Beyond
Density
Bonus
State Law
(A - 12)
The City will study and consider adopting an affordable housing incentives policy above and beyond the minimum requirements of density bonus state law.

The City will specifically consider additional incentives for households with special housing needs, including large households, extremely low-income households, and senior households.

Adopted
incentives by
Q3, 2025
Citywide
Increased
housing
choice and
mobility for
special needs
households
#20..
- 1149 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 184
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
Rezoning
Plan (A - 2)
The City will rezone to provide adequate sites to meet its housing need.

Rezoning efforts to be completed prior to December 31, 2023, include:
▪ Create two new Mixed-Use-Pedestrian (MU-P) and Mixed-Use-Highway (MU-H) zones, and modify P-D parcels on 283.1 acres along Sisk Road, 311.2 acres along McHenry Avenue, 83.3 acres along Oakdale Road, and 34.7 acres along Yosemite Boulevard.

Rezoning will occur across all opportunity categories, with specific geographic targeting in the higher resource areas. About 45 percent of the rezone area (13,774 units) is in high or higher resource areas, creating substantial new opportunities for housing mobility and lower-income housing in eastern and northern neighborhoods.

Before
December 31,
2023.

Sisk Road,
McHenry
Avenue,
Oakdale
Road,
Yosemite
Boulevard
Create new
Mixed-UsePedestrian
(MU-P) and
Mixed-UseHighway
(MU-H)
zones, and
modify P-D
parcels on
283.1 acres
along Sisk
Road, 311.2
acres along
McHenry
Avenue, 83.3
acres along
Oakdale
Road, and

34.7 acres
along
Yosemite
Boulevard.

General
Plan and
Zoning
Density
Increases
(A - 3)
As a part of the General Plan update, the City will revise the densities so that the zoning and General Plan densities align. Specifically, the City will:
▪ Revise R-1 to increase the maximum from 7.5 to 10.9 du/acre. ▪ Revise R-2 to increase the maximum from 14.5 to 22 du/acre.

By December
31, 2024, or
as required by
state law.

R-1, R-2, R-3
zones
Increased
maximum
density in the
R-1, R-2, and
R-3 zones
#20..
- 1150 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 185
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
Revise R-3 to increase the minimum from 21.8 to 22 and increase the maximum from 29 to 45 du/acre.

Consolidat
ed Plan
(A - 6)
The City is an entitlement jurisdiction eligible to receive Community Planning and Development (CPD) funds from HUD. Annually, the City receives approximately $2.5 million in CDBG, HOME, and ESG funds from HUD. To receive these funds, the City must develop a Consolidated Plan that outlines the City’s strategy for addressing housing and community development needs. The City must:
▪ Prepare an action plan annually
▪ Prepare new Consolidated Plan for 2025-2030 and 2030-2035 As a part of the Consolidated Plan efforts, the City will support nonprofit corporations in their efforts to make housing more affordable to lower- and moderate-income households. Specifically, the City will work with City-designated Community Housing Development Corporations (CHDOs) to promote, assist, and/or sponsor housing developments in Modesto for lower-income households.

The City will provide some financial support for preserving, rehabilitating, restoring, converting, and acquiring affordable units and provide logistical support for projects by expediting any necessary approvals.

Goals and indicators for the 2020 – 2024 Consolidated Plan include:
▪ Improve Condition and Increase Supply of Affordable Housing (construct 167 rental units, rehab 20 units)
▪ Work Towards Addressing and Preventing Homelessness (assist 105 households/persons) ▪ Enhance Infrastructure and Public Facilities (assist 1,000 households) ▪ Access to Jobs, Education, and Other Economic Development Services (assist 513 households) The City does not require a preference be given to any one population for its use of HOME funds; however, it is recognized that there are scenarios such as layered funding that requires HOME units to be set-aside for a preferred population. Priority populations currently identified in the Consolidated Plan include families or Consolidated
Plan prepared
every 5 years;
action plans
prepared
annually
Citywide
Adopted
Consolidated
Plan and
annual action
plan. Meet
numeric
indicators
identified in
2025 – 2030
Consolidated
Plan
#20..
- 1151 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 186
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
individuals that are below the 80% area median income including but not limited to farmworkers, large households, single family, and multi-family. Families or Individuals experiencing or at risk for homelessness includes chronically homeless, mentally ill, substance abuse, veterans, persons with HIV/AIDS, victims of domestic violence, and youth.

ADU
Incentives
(A - 10)
Pursuant to California Government Code Section 65583(c)(7), the Housing Element must include programs to incentivize and specifically facilitate ADU construction for lower-income households.

To comply with this and encourage the development of ADUs in Modesto, the City will:
▪ Adopt a new set of preapproved/prereviewed plans. As a part of this effort, the City will pursue a partnership with Stanislaus County to collaborate on providing a joint set of preapproved plans. The City currently provides plan options from Stanislaus County on its website. ▪ Continue to exempt ADUs from Capital Facilities Fees. ▪ Educational promotion through Stanislaus Equity Partners (STEP). STEP administers the Stanislaus Backyard Homes Project, an innovative, housing solution in Stanislaus County that provides services to homeowners to create a new affordable rental unit on their property or backyard. The project offers homeowners a “one-stop-shop” for information, financing, design, permitting, and construction of new Accessory Dwelling Units (ADUs) in approved areas of Stanislaus County, including incorporated and unincorporated areas.

Preapproved
plans by Q1,
2025. Create
Tenant
Matching
Program by
Q1, 2026.

Citywide
Increase the
number of
new ADUs
permitted
annually in
the City from
an average of
approximatel
y 6 to an
average of
approximatel
y 15.

Missing
Middle /
Middle
Income
Housing
(Duplexes)
(A - 11)
To increase the variety of housing choice and opportunity in single-family neighborhoods, the City will encourage development on duplexes on corner lots in the R-1 zone. The City currently allows duplexes on corner lots in the R-1 Zone by right.

The City will, distribute, and promote an information bulletin to inform homeowners of their ability to develop a duplex on their property.

Develop
pamphlet by
Q4, 2024.

R-1 zone,
singlefamily
zones, and
high
resource
areas of the
City per the
most recent
TCAC maps
Creation of
50 units
throughout
the planning
period.
#20..
- 1152 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 187
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
SB 9
Ordinance
Processing
/
Incentives
(A - 15)
The City will amend the zoning code to comply with the provisions of California Government Code Section 65852.21.

The City will pursue a number of incentives and develop guidance materials for homeowners to assist them in developing SB 9 units on their properties. Efforts include:
▪ An SB 9 webpage to highlight opportunities for SB 9 development in Modesto. The webpage will include a step-by-step guide and instructions.
▪ Streamlined review.
▪ Advertising to homeowners.
▪ FAQs, similar to those provided for ADUs.

By Q1, 2025. Citywide
Increase SB 9
unit
production to
10 annually.

PlaceBased
Improvem
ents –
Downtown
(E - 1)
The City develops and implements multiple programs and strategies and makes investments in infrastructure and services in known areas of concentrated segregation and poverty, all of which contribute to community revitalization and improved quality of life in downtown Modesto.

Specifically, the City is pursuing the following:
▪ Currently developing plans to identify necessary improvements in southwest Modesto and downtown through the Urban Planning and Project Management Support Program, which aims to develop housing downtown and on the municipal golf course. ▪ Provide a Capital Facilities Fees waiver for low-income projects. ▪ Street improvement projects to transform 10th Street into a pedestrian-oriented corridor. ▪ A full pedestrian redevelopment of 9th Street, including Class I bike lines. This is in conjunction with Archway Commons Phase II, a 79-unit housing development on 7th Street. ▪ A redevelopment of the downtown bus station to transform it into a transit hub. This includes preparations for the Altamont Corridor Express, anticipated to begin operations in 2026.

Based on
Capital
Improvement
s schedule.

Fee waiver
ongoing.

Courthouse to
be completed
in 2024.

Altamont
Corridor
Express,
anticipated to
begin
operations in
2026.

Downtown
Increased
housing
opportunity
Completion
of four
infrastructur
e projects in
the
downtown
area,
including one
bike/pedestri
an projects,
one park
renovation,
one
#20..
- 1153 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 188
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
A new courthouse to be opened in 2024, with redevelopment of the former courthouse and county jail as a mixed-use project.

The City is pursuing a number of projects included in its Capital Improvement Plan to improve pedestrian infrastructure, sewer improvements, and multi-modal access downtown including:
▪ Replacement of the 7th Street Bridge at Tuolumne River ($1,401,911) ▪ Replace the existing sewer main on F Street, from 6th to Burney Street and improvements to sewer mains connecting to D and F street. ($200,000)
▪ 7th Street Bride water main, in conjunction with the bride replacement ($1.3 million) ▪ Tuolumne Boulevard intersection improvements at 7th and B Street, in coordination with the bridge replacement ($300,000)
▪ 9th St Corridor Improvements AHSC Grant: Install 2.2 miles of Class 1 bike path from Carpenter Road overpass to L Street. Additional improvements include installation of a roundabout at the 9th St/Carver intersection and potentially at the 9th/Tully and 9th/Kansas. ($6,000,000) ▪ Cesar E. Chavez Park Renovation Project: The Cesar E. Chavez Park Renovation Project will provide a complete renovation of Cesar E. Chavez Park, including the construction of an aquatics facility, skate plaza, building expansion, basketball court, soccer field, restroom, picnic area, landscaping, lighting, security cameras, walking paths and other general park amenities. ($8,500,000)
water/sewer
project and
one bridge
replacement
project.

PlaceBased
Improvem
ents –
County
The City, in partnership with Stanislaus County, implements programs and pursues place-based improvements in the unincorporated County Islands. Many of these investments are focused on upgrading infrastructure in the County Islands to eliminate existing inequality. Specifically, efforts include:

Based on
Capital
Improvement
s schedule.

Partnership
County
Islands
Increased
access to
water and
sewer.

Completion
of thirteen
#20..
- 1154 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 189
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
Islands
(E - 2)
▪ Investing $10 million to upgrade infrastructure in the County Islands such as curb gutters, sidewalks, streetlighting, sewer, water, and storm drains. ▪ Stanislaus County has allocated $55.8 million of ARPA fundings to Community Infrastructure for Urban Pockets/County Communities, including the County Islands in Modesto. The funding is a portion of $107 million in ARPA funding allocated to Stanislaus County and was approved for use in the County Islands on May 18, 2021.
▪ Collaborating with Stanislaus County to address any property tax issues as money becomes available to annex “island” properties to Modesto.
▪ Through the Capital Improvement Plan, working with the County to fund sewer connections.

Developing the Southwest Modesto Plan, which will serve as a blueprint for future development, with guidance on land use, economic development, transportation, infrastructure, and other issues for the Southwest Modesto Plan Area.

The City is pursuing a number of projects included in its Capital Improvement Plan to improve pedestrian infrastructure, sewer improvements, and multi-modal access in the County Islands and surrounding Southwest Modesto areas. These efforts are working to invest in and improve areas with historically lower quality infrastructure, including:
▪ River Trunk Realignment, planned completion in 2027 ($23 million) ▪ Paradise Water Main: replacement of antiquated water mains to provide residential services and additional fire hydrants. Planned completion in 2026 ($2.7 million) ▪ Crows Landing pavement rehabilitation ($3 million)
▪ Paradise Road Pedestrian and Bicycle Safety Improvements: including installation of sidewalks to fill gaps, Class II bike lanes, pedestrian crossing, and traffic calming measures ($8 million)
▪ Neece Drive improvements including development of a non-motorized boat launch, concrete pathways, security lighting, and landscaping ($1 million) with County
underway
CIP projects
in the
southwest
and
downtown
area,
including
eight
infrastructure
improvement
s, two
pavement
rehabilitation
projects, two
pedestrian/bi
ke
infrastructure
projects, and
one park
improvement
project.

Completion
of fourteen
CIP projects
in other
disadvantage
d
neighborhoo
ds including
#20..
- 1155 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 190
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
▪ Colorado Avenue water main replacement ($2.2 million) ▪ Replace aged existing water mains along Sutter Avenue ($2.9 million) ▪ Pavement rehabilitation along Tuolumne Boulevard from Paradise Road to Neece Drive ($3.8 million)
The City is pursuing a number of projects included in its Capital Improvement Plan to improve pedestrian infrastructure, sewer improvements, and multi-modal access in other lower resource areas or neighborhoods across the City, including:
▪ Roosevelt Park storm drain cross connection removal, providing storm drain improvements ($4.6 million)
▪ Pike Park Neighborhood replace existing water mains, estimated completion in 2025 ($6.4 million)
▪ La Loma Neighborhood sewer replacement ($1 million)
▪ La Loma Neighborhood replacement of aged water mains, multiple phases including Phase 3A ($5.7 million) and 2C ($2 million)
▪ River Trunk Section repair of 5,200 feet of damaged and temporary fixed river trunk and soil remediation along the Tuolumne River ($1.3 million)
▪ Improvement of pedestrian safety and traffic flow around Orville Wright Elementary School ($586,702)
ten
infrastructure
improvement
projects
(water,
sewer, fiber
optic cables),
one
pedestrian
improvement
project, two
pavement
rehabilitation
projects, and
one ADA
improvement
program.

Housing Mobility
Rezoning
Plan (A - 2)
The City will rezone to provide adequate sites to meet its housing need.

Rezoning efforts to be completed prior to December 31, 2023, include:

Before
December 31,
2023.

Sisk Road,
McHenry
Avenue,
Oakdale
Road,
Create new
Mixed-UsePedestrian
(MU-P) and
Mixed-Use-
#20..
- 1156 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 191
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
▪ Create two new Mixed-Use-Pedestrian (MU-P) and Mixed-Use-Highway (MU-H) zones, and modify P-D parcels on 283.1 acres along Sisk Road, 311.2 acres along McHenry Avenue, 83.3 acres along Oakdale Road, and 34.7 acres along Yosemite Boulevard.

Rezoning will occur across all opportunity categories, with specific geographic targeting in the higher resource areas. About 45 percent of the rezone area (13,774 units) is in high or higher resource areas, creating substantial new opportunities for housing mobility and lower-income housing in eastern and northern neighborhoods.

Yosemite
Boulevard
Highway
(MU-H)
zones, and
modify P-D
parcels on
283.1 acres
along Sisk
Road, 311.2
acres along
McHenry
Avenue, 83.3
acres along
Oakdale
Road, and

34.7 acres
along
Yosemite
Boulevard.

ADU
Incentives
(A - 10)
Pursuant to California Government Code Section 65583(c)(7), the Housing Element must include programs to incentivize and specifically facilitate ADU construction for lower-income households.

To comply with this and encourage the development of ADUs in Modesto, the City will:
▪ Adopt a new set of preapproved/prereviewed plans. As a part of this effort, the City will pursue a partnership with Stanislaus County to collaborate on providing a joint set of preapproved plans. The City currently provides plan options from Stanislaus County on its website. ▪ Continue to exempt ADUs from Capital Facilities Fees.

Educational promotion through Stanislaus Equity Partners (STEP). STEP administers the Stanislaus Backyard Homes Project, an innovative, housing solution in Stanislaus County that provides Preapproved
plans by Q1,
2025.

Citywide
Increase the
number of
new ADUs
permitted
annually in
the City from
an average of
approximatel
y 6 to an
average of
#20..
- 1157 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 192
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
services to homeowners to create a new affordable rental unit on their property or backyard. The project offers homeowners a “one-stop-shop” for information, financing, design, permitting, and construction of new Accessory Dwelling Units (ADUs) in approved areas of Stanislaus County, including incorporated and unincorporated areas.
approximatel
y 15.

Facilitate
Missing
Middle/Mi
ddle
Income
Housing
(A - 11)
To increase the variety of housing choice and opportunity in single-family neighborhoods, the City will encourage development on duplexes on corner lots in the R-1 zone. The City currently allows duplexes on corner lots in the R-1 Zone by right.

The City will, distribute, and promote an information bulletin to inform homeowners of their ability to develop a duplex on their property.

Develop
pamphlet by
Q4, 2024.

R-1 zone,
singlefamily
zones, and
high
resource
areas of the
City per the
most recent
TCAC maps
Creation of
50 units
throughout
the planning
period.

SB 9
Ordinance,
Processing/
Incentives
(A - 15)
The City will amend the zoning code to comply with the provisions of California Government Code Section 65852.21.

The City will pursue a number of incentives and develop guidance materials for homeowners to assist them in developing SB 9 units on their properties. Efforts include:
▪ An SB 9 webpage to highlight opportunities for SB 9 development in Modesto. The webpage will include a step-by-step guide and instructions.
▪ Streamlined review.
▪ Advertising to homeowners.

FAQs, similar to those provided for ADUs
By Q1, 2025. R-1 zones.

Increase SB 9
unit
production to
10 annually.

Housing
Choice
The Housing Choice Voucher Program for very low-income households is administered by the Stanislaus County Housing Authority. The City of Modesto collaborates with the Housing Authority Annually. Citywide,
with the
Promote the
HCV program
#20..
- 1158 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 193
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
Voucher
Program
(D - 6)
for the development of both rental and homebuyer housing developments. The City will support the Housing Choice Voucher Program by promoting the program to eligible households through City website, brochures, newsletters, and referrals.
goal of
increased
voucher
use in
higher
resource
areas.
to 50
households
annually.

ADU, JADU,
and SB 9
Education
(F - 2)
The City will develop and implement a comprehensive marketing program to advertise the benefits of ADUs, JADUs, and SB 9 units and the process for constructing such units.

The City will provide educational pamphlets on the City website and at City Hall with detailed information on the ADU and JADU process as well as basic responsibilities and legal requirements of being a landlord. The pamphlets will be provided in both English and Spanish.

The City will create an instructional handout and template form for deed restrictions for JADUs, meeting requirements of Government Code 65852.22.

The City will focus outreach and education in the higher opportunity areas of the City to expand housing mobility and choice. Upon biennial review of geographic ADU distribution, the City will review and adjust promotion and outreach strategies to ensure ADUs and JADUs are being marketed in high resource areas that are seeing less ADU construction.

Develop
marketing
plan within
one year of
Housing
Element
adoption;
implement
marketing
program
within two
years of
Housing
Element
adoption.

Biennial
review of ADU
geographic
distribution.

Citywide.

Increase the
number of
new ADUs
permitted
annually in
the City from
an average of
approximatel
y 6 to an
average of
approximatel
y 15. Increase
the number
of SB 9
applications
to 10
annually.

Housing
for
To provide for the needs of farmworkers, the City is pursuing a number of efforts to encourage and develop special needs housing, as follows:

Creation of
developer
Citywide. Increased
housing
#20..
- 1159 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 194
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
Farmwork
ers (D - 9)
▪ Include farmworkers as a special needs group eligible for density bonuses beyond state law (A – 12)
▪ Compile a list of interested and qualified developers of farmworker housing and include them outreach efforts, which include advertising development opportunities, funding opportunities, and other educational and engagement efforts in the City (F – 1). ▪ Provide additional parking reduction opportunities for special needs housing projects(Program B - 6)
Expand the Capital Facilities Fees waiver to apply to farmworker housing projects (Program D - 7). ▪ Targeted promotion of the Homeowner Repair Assistance Program (C - 3) to farmworker households to increase participation in the program.
▪ Continue to apply for funding for farmworker housing as opportunities are available. The City has previously applied for funding for farmworker housing and will continue to do so on an annual basis. Funding sources that can support farmworker housing include CDBG, HOME, CFF exemptions, and the Homeowner Rehabilitation Program.
▪ Continue to pursue active relationships to support and develop farmworker housing, including partnerships with organizations, who have significant experience in USDA grants, such as Visionary Home Builders, and the State Joe Serna, Jr. Farmworker Housing Grant Program (FWHG). interest list by
end of Q4,
2025.

Adopted
density bonus
incentives by
Q3, 2025.
choice and
mobility for
farmworkers
Place-based Improvements
PlaceBased
Improvem
ents –
Downtown
(E - 1)
The City develops and implements multiple programs and strategies and makes investments in infrastructure and services in known areas of concentrated segregation and poverty, all of which contribute to community revitalization and improved quality of life in downtown Modesto.

Specifically, the City is pursuing the following:
▪ Currently developing plans to identify necessary improvements in southwest Modesto and downtown through the Urban Planning and Project Management Support Program, which aims to develop housing downtown and on the municipal golf course.

Fee waiver
ongoing.

Courthouse
to be
completed in
2024.

Altamont
Corridor
Express,
Downtown
Modesto.

Increased
housing
opportunity
#20..
- 1160 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 195
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
▪ Provide a Capital Facilities Fees waiver for low-income projects. ▪ Street improvement projects to transform 10th Street into a pedestrian-oriented corridor. ▪ A full pedestrian redevelopment of 9th Street, including Class I bike lines. This is in conjunction with Archway Commons Phase II, a 79-unit housing development on 7th Street. ▪ A redevelopment of the downtown bus station to transform it into a transit hub. This includes preparations for the Altamont Corridor Express, anticipated to begin operations in 2026.

A new courthouse to be opened in 2024, with redevelopment of the former courthouse and county jail as a mixed-use project.

The City is pursuing a number of projects included in its Capital Improvement Plan to improve pedestrian infrastructure, sewer improvements, and multi-modal access downtown including:
▪ Replacement of the 7th Street Bridge at Tuolumne River ($1,401,911) ▪ Replace the existing sewer main on F Street, from 6th to Burney Street and improvements to sewer mains connecting to D and F street. ($200,000) ▪ 7
th Street Bride water main, in conjunction with the bride replacement ($1.3 million) ▪ Tuolumne Boulevard intersection improvements at 7th and B Street, in coordination with the bridge replacement ($300,000)
anticipated to
begin
operations in
2026.

PlaceBased
Improvem
ents –
County
Islands
(E - 2)
The City, in partnership with Stanislaus County, implements programs and pursues place-based improvements in the unincorporated County Islands. Many of these investments are focused on upgrading infrastructure in the County Islands to eliminate existing inequality. Specifically, efforts include:
▪ Investing $10 million to upgrade infrastructure in the County Islands such as curb gutters, sidewalks, streetlighting, sewer, water, and storm drains.

Based on
Capital
Improvement
s schedule.

Partnership
with County
underway.

County
Islands and
surroundin
g areas.

Increased
access to
water and
sewer.

Completion
of thirteen
CIP projects
in the
#20..
- 1161 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 196
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
▪ Stanislaus County has allocated $55.8 million of ARPA fundings to Community Infrastructure for Urban Pockets/County Communities, including the County Islands in Modesto. The funding is a portion of $107 million in ARPA funding allocated to Stanislaus County and was approved for use in the County Islands on May 18, 2021.
▪ Collaborating with Stanislaus County to address any property tax issues as money becomes available to annex “island” properties to Modesto.
▪ Through the Capital Improvement Plan, working with the County to fund sewer connections.

Developing the Southwest Modesto Plan, which will serve as a blueprint for future development, with guidance on land use, economic development, transportation, infrastructure, and other issues for the Southwest Modesto Plan Area.

The City is pursuing a number of projects included in its Capital Improvement Plan to improve pedestrian infrastructure, sewer improvements, and multi-modal access in the County Islands and surrounding Southwest Modesto areas. These efforts are working to invest in and improve areas with historically lower quality infrastructure, including:
▪ River Trunk Realignment, planned completion in 2027 ($23 million) ▪ Paradise Water Main: replacement of antiquated water mains to provide residential services and additional fire hydrants. Planned completion in 2026 ($2.7 million) ▪ Crows Landing pavement rehabilitation ($3 million)
▪ Paradise Road Pedestrian and Bicycle Safety Improvements: including installation of sidewalks to fill gaps, Class II bike lanes, pedestrian crossing, and traffic calming measures ($8 million)
▪ Neece Drive improvements including development of a non-motorized boat launch, concrete pathways, security lighting, and landscaping ($1 million) ▪ Colorado Avenue water main replacement ($2.2 million) southwest
and
downtown
area,
including
eight
infrastructure
improvement
s, two
pavement
rehabilitation
projects, two
pedestrian/bi
ke
infrastructure
projects, and
one park
improvement
project.

Completion
of fourteen
CIP projects
in other
disadvantage
d
neighborhoo
ds including
ten
infrastructure
#20..
- 1162 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 197
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
▪ Replace aged existing water mains along Sutter Avenue ($2.9 million) ▪ Pavement rehabilitation along Tuolumne Boulevard from Paradise Road to Neece Drive ($3.8 million)
The City is pursuing a number of projects included in its Capital Improvement Plan to improve pedestrian infrastructure, sewer improvements, and multi-modal access in other lower resource areas or neighborhoods across the City, including:
▪ Roosevelt Park storm drain cross connection removal, providing storm drain improvements ($4.6 million)
▪ Pike Park Neighborhood replace existing water mains, estimated completion in 2025 ($6.4 million)
▪ La Loma Neighborhood sewer replacement ($1 million)
▪ La Loma Neighborhood replacement of aged water mains, multiple phases including Phase 3A ($5.7 million) and 2C ($2 million)
▪ River Trunk Section repair of 5,200 feet of damaged and temporary fixed river trunk and soil remediation along the Tuolumne River ($1.3 million)Improvement of pedestrian safety and traffic flow around Orville Wright Elementary School ($586,702) improvement
projects
(water,
sewer, fiber
optic cables),
one
pedestrian
improvement
project, two
pavement
rehabilitation
projects, and
one ADA
improvement
program.

Bilingual
Materials
(F - 3)
The City will continue its efforts to provide presentations, materials, and communications in both English and Spanish. In a continued effort to maximize inclusivity, productivity and engagement, the City of Modesto utilizes Wordly, a language interpretation tool. Wordly provides real-time interpretation services so that each City Council meeting participant can choose from several interpretation languages. Instructions on how to use Wordly are available on the City’s website.

The full housing element is also being translated into Spanish and will be posted along with the English version of the housing element.

The City will review its demographics every five years to determine if translations in other languages are appropriate.

Review
demographics
every five
years.

Citywide
Minimum of
3 mediums of
outreach
#20..
- 1163 -
City of Modesto Housing Element
Affirmatively Furthering Fair Housing
City of Modesto 198
Program Specific Commitment Timeline Geographic
Targeting
2023 – 2031
Metric
Displacement Prevention
Displacem
ent
Prevention
(E - 4)
The City will develop a displacement prevention program that adheres to federal Uniform Relocation Assistance and Real Property Acquisition Act guidelines. The program will ensure that all households that are displaced are provided housing at equal affordability levels as the demolished housing.

By Q3, 2025 Citywide
No loss of
affordable
units
Mobile
Home Rent
Stabilizatio
n
Ordinance
(C - 2)
The City’s rent control ordinance governs the maximum annual rent increases in the City's mobile home parks to ensure that the City’s mobile homes continue to be some of the most affordable homeownership options in the City.

Provide information on the City’s rent control ordinance and Homeowner Repair Program (Program C - 3) to mobile home owners.

Monitor rent
increase
annually.

Mobile
home parks
throughout
the City.

Preservation
of 1,966
existing
mobile
homes.

Incentives
Beyond
Density
Bonus
State Law
(A - 12)
The City will study and consider adopting an affordable housing incentives policy above and beyond the minimum requirements of density bonus state law.

The City will specifically consider additional incentives for households with special housing needs, including large households, extremely low-income households, and senior households.

Adopted
incentives by
Q3, 2025.

Citywide.

Increased
housing
choice and
mobility for
special needs
households
#20..
- 1164 -

CONSTRAINTS ON HOUSING
DECEMBER 2023
City of
MODESTO Housing Element 2023-2031
#20..
- 1165 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 200
Constraints on Housing
There are a wide variety of factors that influence whether, where, when, how, and what type of housing is constructed. While many factors enable, guide, and even incentivize housing construction, almost all pose some sort of limitation or constraint as well. Our land use policies and regulations are necessary but, by definition, establish limits on growth and development.

These limits work with, influence, and are balanced by market forces.

There are generally two types of constraints: governmental and nongovernmental.

Governmental constraints include the policies, regulations, and procedures that directly affect housing. This includes the goals, policies, and programs of the General Plan and the development standards and requirements of the Zoning Ordinance and other land use ordinances. Nongovernmental constraints include those factors that are beyond the direct control and authority of the City.

This section identifies and evaluates those factors that may pose significant constraints or burdens that may limit or constrain the production of housing to meet our local and regional housing needs and the goals and objectives of the General Plan. Such constraints, particularly those that limit the construction of or fair access to affordable housing, must be addressed with clear, measurable, and timely programs.

Governmental Constraints
Potential governmental constraints include, but are not limited to, growth management measures, land use controls, development standards, building codes, processing fees and procedures, exactions, property taxes, and site improvement costs. Governmental constraints can limit or deter the operations of the public, private, and nonprofit housing development sectors, making it difficult to meet the demand for housing and limiting supply in a region.

Such constraints can limit access to housing for various ethnic, racial, or social groups, or prevent lower-income households from having adequate housing opportunities.

The City of Modesto sets forth policies to guide new development and the use of land within the City limits through its General Plan. These policies, in conjunction with the Zoning Ordinance, control the amount and distribution of land allocated for different uses within the City and how this land can be developed.

Locally Adopted Ordinances
The City does not have locally adopted ordinances such as inclusionary, affordable, or shortterm rental ordinances that will impact cost or supply of housing.

As part of the impact fee exemption ordinance, the Stanislaus County Housing Authority, and low, very low, and special needs housing developments are exempt from the City’s Capital Facilities Impact Fees (developer fees). Capital facilities fees have been waived for recent #20..
- 1166 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 201
affordable housing projects within the City, reducing the potential adverse impact of fees on low-income development. Since the fiscal year (FY) 2016 – 2017, there have been 109 units exempt from the capital facilities fee.

General Plan
The General Plan is a comprehensive, long-range general policy document that expresses the community’s vision and establishes 13 objectives, which include promoting equitable and affordable housing. The City is in the process of updating its General Plan and Zoning Ordinance.

Figure 47: General Plan Land Use Designation
The General Plan identifies six residential land use designations, as follows:
▪ Residential (R): This designation provides for residential uses throughout the Modesto Urban Area. Residential uses include single-family detached housing, single-family attached housing, multifamily housing, and mobile homes. Compatible uses in the residential designation may include schools, parks, and religious or community facilities. Existing small-scale commercial and office uses are also deemed compatible.

The implementing zones are R-1, R-2, and R-3, and density varies depending on the zoning designation, with a typical density of 6.6 dwelling unit per acre (du/ac), a #20..
- 1167 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 202
maximum density of 7.5 du/ac area-wide, and a maximum density between 10.9 du/ac and 29 du/ac in zones designated for multifamily housing. ▪ Mixed Use (MU): This designation allows for development that contains a mixture of all or some of the following uses in close proximity to each other: residential, commercial, office, and/or institutional. For residential uses, the intensity should average approximately 14 du/ac over the entire residential area, with project-specific density to be consistent with zoning. For nonresidential uses, the guiding intensity is a floor area ratio (FAR) of approximately 0.35. The RHNA and zoning is not reliant on the 14 du/ac. This land use designation reflects previously existing uses. The average of 14 du/ac was originally intended to be an average of the whole land use designation area, and is not enforced on a project by project basis. The new mixed-use zones will reflect new densities.
▪ Downtown (D): The Downtown designation is applied within the original downtown grid/City center and limited surrounding areas. Modern transportation systems provide convenient transportation to and within the downtown area. Vertical mixeduse development is allowed and is encouraged by the Downtown zones. The applicable guiding intensity is a FAR between 1.0 and 14.0.
▪ Village Residential (VR): This designation provides for the development of urban “villages” to be made of mixed-use, compact, pedestrian-, and transit-oriented neighborhoods that are intended to accommodate a variety of residential product types, such as detached houses on small lots, multifamily housing, and senior housing, in addition to neighborhood-serving nonresidential uses. This designation may be applied to areas throughout the Planned Urbanizing Area. As areas designated Village Residential are entitled, annexed, and developed, the General Plan land use designation should be changed to Residential. Residential density is typically 6.6 du/ac (gross) for the entire district. Small-lot single-family residential development is encouraged. At least 15 percent of the residentially designated land area shall be reserved for multifamily development at a minimum density of 22.0 du/ac. The maximum multifamily residential density is 29.0 du/ac. Approximately 4 percent of lands designated Village Residential shall be devoted to commercial uses, with a guiding intensity of 0.35 FAR.
▪ Business-Commercial-Residential (BCR): This designation is intended to accommodate employment-intensive uses, and medium-high-density residential uses, with a variety of goods and services readily available. This provides for a combination of land uses, including Business Park, Commercial, and Residential, in close proximity in order to reduce vehicle trips. The land use mix should be a minimum of 55 percent and maximum of 70 percent of gross acreage devoted to business park uses; a minimum of 20 percent and a maximum of 30 percent of gross acreage to be devoted to residential uses; and a minimum of 10 percent and a maximum of 20 percent of #20..
- 1168 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 203
gross acreage devoted to commercial uses. For residential uses, densities should be between 10 du/ac and 30 du/ac (gross). For nonresidential uses, the guiding intensity is approximately 0.4 FAR.
▪ Open Space (OS): In the Open Space designation, planned land uses shall include lowimpact recreational facilities, public ownership, low-density residential, and agriculture.

New development within areas designated Open Space shall be designed to not detract from habitat value or passive recreational uses, nor increase flood potential. This designation is applied along the Tuolumne and Stanislaus Rivers and Dry Creek. For residential uses in the Open Space designation, the density shall not exceed 1 dwelling unit per 10 acres.

Table 66 lists the General Plan land use designations that allow for residential development, along with the range of building intensity. The City is in the process of updating its General Plan and Zoning Ordinance. Updates include modifications to ensure consistency between the General Plan, Zoning Ordinance, and California State Law.

Revisions anticipated to be completed prior to the end of 2023 and adoption of the Housing Element include the following:
▪ Creation of a two new Mixed-Use Zones, Mixed-Use-Pedestrian (MU-P) and Mixed-UseHighway (MU-H) along Sisk Road, McHenry Avenue, Yosemite Boulevard, and Oakdale Road.
▪ Amend P-D standards for parcels on Sisk Road, McHenry Avenue, Yosemite Boulevard, and Oakdale Road to allow for higher density residential development Revisions anticipated to be completed after the adoption of the Housing Element include:
▪ Increase the densities of the R-1, R-2, and R-3 zones to ensure there is continuity of permitted densities between residential zones and align more closely with recommended densities in the General Plan.

Table 66: General Plan Land Use Designations and Density Guidance General Plan Land Use Designation Existing Density Proposed Density Low Density Residential (R-1) Up to 7.5 du/ac Less than 10.9 du/ac Medium Density Residential (R-2) 10.9 to 14.5 du/ac 10.9 to 22 du/ac Medium High Density Residential (R-3) 21.8 to 29 du/ac 22 to 45 du/ac Mixed Use (MU) Average 14 du/ac Average 14 du/ac1
Mixed-Use-Pedestrian (MU-P) N/A 22 to 45 du/ac2
Mixed-Use-Highway (MU-H) N/A 22 to 45 du/ac2
Downtown (D) FAR: 1 - 14 FAR: 1 - 14
#20..
- 1169 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 204
Village Residential (VR) 6.6 du/ac 6.6 du/ac
Business-Commercial-Residential
(BCR) 30% of ac 30% of ac
Open Space (OS) 1 du/10 ac 1 du/10 ac
Source: City of Modesto, General Plan Community Development Policies, 2019. 1The RHNA and zoning is not reliant on the 14 du/ac. This land use designation reflects previously existing uses. The average of 14 du/ac was originally intended to be an average of the whole land use designation area, and is not enforced on a project by project basis. The new mixed-use zones will reflect new densities. 2The Mixed- Use Zone will allow a range of high density development up to 45 du/ac.

Zoning Ordinance
Development Standards
The City’s Zoning Regulations, Title 10 of the Code of Ordinances, establish development standards for new development, such as densities, height, parking, and setbacks, to implement the development envisioned in the General Plan.

Height Limits
The City has two types of height limits in residential districts: a maximum height measured in stories and an absolute height measured in feet. Height limits in the R-3 zone are 3 stories or 42 feet, whichever is less. For the R-1 and R-2 zones, the height limits are 2 stories or 30 feet, whichever is less. The height limits do not constrain multifamily development from reaching the prescribed densities put forth in the General Plan (10.9–14.5 du/ac for medium density sites and 21.8–29.0 du/ac for medium high density).

Setbacks
All residential zones have setbacks, which are the minimum distance between a structure and a lot line. Setbacks in Modesto are largely uniform but vary depending on number of stories and whether the parcel is adjacent to an R-1 zone for residential development and whether it’s adjacent to a residential zone for mixed-use development. Residential zones have 15-foot front setbacks, 5–20-foot interior side setbacks, and 10–15-foot rear setbacks. Mixed-use zones (PO, C-1, C-2, C-3) have 10–15-foot front and 0–5-foot rear and side setbacks.

While all setbacks reduce the amount of land that is developable on a site, the setbacks do not constrain projects from reaching the maximum housing density in a zone.

Lot Size
The Zoning Code specifies a minimum lot area for all residential zone districts. The lot size requirements are also dependent on whether the lot is an interior or corner lot. The R-1 zone requires 5,000 sf interior lots and 5,500 sf corner lots and 6,000 sf interior lots and 6,500 sf corner lots for both the R-2 and R-3 zones. For the SP-H zone, the lot area requirement is 10 acres.
#20..
- 1170 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 205
Lot Coverage
All residential zones have lot coverage requirements, which is the maximum percentage of a lot occupied by structures including patios, porches, garages, and covered parking spaces. The lot coverage requirements vary depending on whether the lot is an interior lot or corner lot.

The R-1 zone requires 50 - 55%, R-2 55-60% and R-3 60 - 65% maximum coverage. For the SPH zone, the lot coverage requirement is 50% maximum coverage.

Lot Area
The City of Modesto does not regulate residential floor area.

Unit Size
The City of Modesto does not impose any minimum unit size requirements.

Parking
The City of Modesto does not have any garage or enclosure requirements for parking. There are no parking requirements beyond the number of spaces as specified in Table 69. #20..
- 1171 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 206
Table 67: Residential Zone Districts Development Standards R-1 R-2 R-3 SP-H (3) P-D (2)
Lot Requirements
Lot Area (min)
Interior Lot 5,000 sq ft 6,000 sq ft 6,000 sq ft
10 ac
-
Corner Lot 5,500 sq ft 6,500 sq ft 6,500 sq ft -
Lot Width (min)
Interior Lot 50 ft 60 ft 60 ft 50 ft -
Corner Lot 60 ft 60 ft 60 ft 60 ft -
Flag Lot 20 ft 20 ft 20 ft - -
Lot Coverage (max)
Interior Lot 50% 55% 60%
50%
-
Corner Lot 55% 60% 65% -
Setback Requirements
Front and Street-Side
(corner lot) 15 ft 15 ft 15 ft 15 ft -
Interior Side First Story:
5 ft
First Story:
5 ft First Story: 5 ft 15 ft -
Adjacent to R-1
(1) Two Story:
10 ft
Two Story:
15 ft
Two Story: 15 ft
Three Story: 20 ft
- -
Not Adjacent to R-1
(1) Two Story:
10 ft
Two Story:
10 ft
Two Story: 15 ft
Three Story: 10 ft
- -
Rear
First Story:
10 ft
Two Story:
15 ft
First Story:
10 ft
Two Story:
15 ft
First Story: 10 ft
Two Story: 15 ft
5 ft -
Adjacent to R-1
(1)
- - Three Story: 20 ft - -
Not Adjacent to R-1
(1)
- - Three Story: 10 ft - -
Height (max
stories/feet, whichever
is less)
2/30 ft 2/30 ft 3/42 ft 2/30 ft -
Density (min/max) 0/7.5 du/ac 11/14.5
du/ac 14.5/29 du/ac - -
#20..
- 1172 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 207
(1) Adjacent to R-1 zone includes property zoned R-1 in the City including P-D zones (with R-1 density) and property zoned A2, R-A, and R-1 in the County. (2) All applications for P-D zones shall be processed as zone boundary changes and P-D zones, if adopted, shall be adopted by ordinance and will become part of the Zoning Map of the City. The development plan, conditions and development schedule for a P-D Zone shall be adopted by resolution. P-D zoning is entirely optional. It is used for if a developer needs to set regulations for a specific project that do not fit within current standards. (3) The SP-H zone is not related to the RHNA or the sites inventory. For reference, the SP-H zone is the Specific Plan Holding Zone that is typically used when land is annexed and the applicant is still determining what the land will be used for. When the applicant is ready, the land will be rezoned. There are no RHNA sites in this zone. (4) The City of Modesto does not impose any minimum unit size requirements.

Table 68: Zones Allowing Residential Uses Development Standards (Commercial/Industrial Zones)
Zones
Front and StreetSide (corner lot)
(min ft)
Rear and Side (interior lot)
(minimum in feet)
Building Height
(stories/ft)
Building
When
Lot is
Adjacent
to Alley
Building
Adjacent to Residential
Zone (1)
Structure
(maximum
in
stories/feet)
(not
adjacent to
residential
zone)
Adjacent
to
Residential
Zone (1)
One
Story
Portion
Two
Story
Portion
Third
Story
and
above
P-O 15 15 5 10 20 - 2/35 2/35
C-1 10 0 0 10/40 20/40 - 2/35 2/35
C-2 10 0 0 10/40 20/40 50 8/90 3/45
C-3 15 15 0 10/40 20/40 50 3/45 3/45
Note: Multifamily development allowed with a conditional use permit shall comply with R-2 or R-3 development standards. (1) Adjacent to residential zone includes R-1, R-2, R-3, or residential P-D zones in the City or County.

Parking
In California, the cost of providing structured parking can add between $36,000 to $38,000 per housing unit to the overall costs of a multifamily housing development project (or about 8.0 percent of per unit costs).16 High parking requirements can reduce the potential land available for development and increase the cost of development.

The City’s parking requirements for residential use (Section 10-5.1) of the Code of Ordinances vary by residential land uses. Single-family residential uses require as many as two spaces per unit, while multifamily residential requires one space per unit. Modesto parking requirements 16 Carolina Reid, Adrian Napolitano, and Beatriz Stambuck-Torres, “The Costs of Affordable Housing Production: Insights from California’s 9% Low-Income Housing Tax Credit Program,” The Terner Center for Housing Innovation at University of California, March 2020. #20..
- 1173 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 208
are provided in Table 69. Modesto’s parking requirements are lower than in most cities.

Construction of recent development, including below market-rate units, demonstrate that Modesto’s existing parking requirements are not an unreasonable constraint on housing development.

Additionally, the City provides provisions for off-site parking, reductions in parking, or shared parking facilities for nonresidential buildings or uses in conjunction with a discretionary action that requires Board, Commission, or Council approval. Any request for off-site, reduced, or shared parking with a non-discretionary action such as a development plan review shall be reviewed by the Director. The approval body will be guided by the following criteria in making its determination:
▪ The applicant shall submit sufficient information to indicate the normal hours of operation of such uses or activities do not substantially coincide or overlap with each other and/or the peak hour parking demand;
▪ The adjacent or nearby properties will not be adversely affected relative to parking; ▪ The traffic and pedestrian circulation resulting from the off-site or shared parking approval will not be detrimental to the public health, safety and welfare; ▪ The development is located near available on-street parking or other public parking areas;
▪ Transit alternatives are available near the development; ▪ Mixed-use developments that include residential and retail or office.

A number of recent projects have utilized shared parking, including:
▪ El Rio Senior Housing
▪ Magnolia Garden
▪ Mable Apartments
▪ Tower Park
▪ Archway Commons Phase II
▪ Vine Street Developments
#20..
- 1174 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 209
Table 69: Parking Requirements
Land Use Required Parking Spaces
Single-Family Residential 2 per unit
Second Unit (Granny Flat) 1 additional space
Multiple-Family Residential(1)
Studio 1 per unit
1 bedroom 1 per unit
2 or more bedroom 2 per unit
Assisted Living 1 space per 4 beds, or 1 space per 4 units Emergency/Homeless Shelter 1 space per employee
Mobile Home Park As specified per Planned Development zone approval
Senior Housing As required by the designated
approving authority
(1) Lots with 5 or more units shall also provide 1 guest parking space per 4 units. (2) The City of Modesto does not have any garage or enclosure requirements for parking. There are no parking requirements beyond the number of spaces as specified.

Downtown Modesto Master Plan and Form Based Code
The Modesto Downtown Master Plan, adopted in August 2020, addresses improved parking, attractive public spaces, such as tiny parks and plazas, and opportunities for housing, transit, and other elements of a successful downtown.

Modesto adopted a Form Based Zoning Code for its downtown in 2010 (for the downtown core) and in 2015 (for the remainder of downtown). The Downtown Code covers 42 blocks in the downtown area (approximately 180 acres) and is intended to implement the General Plan vision for downtown as the cultural, social, business, and activity center of Modesto. Unlike use-based zoning, which characterizes most of Title 10, the development code for Modesto, the Downtown Code emphasizes the regulation of building form and placement and encourages mixed-use development on individual parcels. There are six form based code zones in the downtown area, each distinct in its purpose, development standards, intensity, and allowed uses (see Table 70 and the following descriptions). ▪ Central Downtown (CD): This zone is intended to foster the most intensive and active urban environment in the downtown, while ensuring an overall human scale to development. Reserved for large but unobtrusive building envelopes that accommodate a mixture of uses, including residential, with an interface that promotes a very strong public/private connection and lively streetscape. The district contains Historic Preservation sites that are included on the landmark preservation list in the General Plan.
#20..
- 1175 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 210
▪ Transition Downtown (TD): This zone is intended to foster an intensive and active urban environment, but at a reduced scale from what is found in the Central District.

Reserved for medium-large building envelopes that accommodate a mixture of uses, including residential, with an interface that promotes a strong public/private connection and lively streetscape. In addition to Historic Preservation sites, the zone contains the site of a future passenger rail station.
▪ Urban General Downtown (UGD): This zone is intended to create space for more urban activities and new housing is highly desirable. This zone links the Central Downtown zone to the outer districts and areas of downtown. ▪ Main Street Downtown (MSD): This zone is intended to promote and enhance a vibrant "main street" commercial environment within walking distance of the surrounding neighborhood. The Main Street Downtown zone is intended to be the commercial focus of the surrounding neighborhood but at a smaller scale than the Central Downtown zone. The focus of this district is on commercial uses but it also accommodates residential uses.
▪ East Neighborhood Downtown (END): The purpose of this zone is to facilitate the continuing transition of the east area of downtown that was originally developed as a residential neighborhood but is in the process of changing to commercial and office uses. This zone would allow a mixture of uses where new development would include a variety of housing types and commercial uses.
▪ Traditional Neighborhood Downtown (TND): This zone is intended to allow new residential development that is compatible with the traditional single-family residential character of the neighborhood. Provides provisions for frontage types, setbacks, building envelope, building height, building type, and yard areas to be compatible with the historical and existing characteristics of this residential neighborhood. #20..
- 1176 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 211
Table 70: Downtown Master Plan Area Development Standards Downtown Zones

CD TD UGD MSD END TND
Setbacks
Front 5-8 ft 0-8 ft 5-8 ft 0-5 ft 0-25 ft 15-25 ft
Side 0 ft 0 ft 5-8 ft 0 ft 0-20 ft 5-10 ft
Rear - - - 0 ft 0 ft 5-10 ft
Building Form
Lot Width 50 ft 50 ft 50-100 ft - - -
Lot Area (min) 1,252 sq ft 1,250 sq ft - - - -
Height (Stories)
(min-max)
3-15 2-8 1-3 1-3 1-3 1-2
Source: City of Modesto Municipal Code 10-7.5.

Form based code does not rely on metrics such as FAR or density requirements; rather it uses building types to determine what future development could be, which provides flexibility for redevelopment and reliability of outcome for developers, owners, and neighbors. Building types help achieve the desired built form and pedestrian orientation in the downtown. The following building types are allowed in downtown Modesto:
▪ Bungalow Court
▪ Commercial Block
▪ Courtyard
▪ Du-Tri-Quadplex
▪ Front Yard House
▪ Live Work
▪ Mansion Apartment
▪ Row House
▪ Stacked Flats
For each of these building types, there are seven provisions/guidelines that further regulate each typology:
▪ Description
▪ Access
▪ Parking
#20..
- 1177 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 212
▪ Open Space
▪ Frontage
▪ Building Size and Massing
▪ Accessory Structures
Within the Downtown Master Plan area, parking requirements are simplified to require a minimum 1 space per unit and maximum 2 spaces per unit for all residential uses, with the exception of the CD and TD zones. Within the CD zone, ground-floor residential has no parking requirement minimum and has a 1 space per unit maximum for all floors; in the TD zone, the minimum requirement is 1 space per unit with a maximum of 1.5 space per unit for all floors.

These parking standards require fewer spaces compared to other jurisdictions in the region and do not unduly constrain multifamily housing development.

The Downtown form based code permits a variety of housing types with permissive development standards that permit a wide range of densities. Modesto adopted the Modesto Housing Plan in August 2022. The plan included feasibility analyses of each housing type on a range of typical property sizes, locations and contexts. The study determined that the housing types are feasible based on local property values and conditions, and demonstrated that the form based code standards do not limit the feasibility of the housing types in Modesto. The Modesto Housing Plan also conducted test fit case studies for typical lots for a variety of contexts including mixed-use and commercial corridors. The test fit case studies demonstrated realistic yields ranging between 32 to 50 dwelling units per acre in a mixed-use corridor context (e.g., the C-1, C-2, C-3 and P-O zones allow high density residential development with a conditional use permit).

Cumulative Effect of Development Standards
The cumulative effect of development standards is not likely to constrain the ability of developers to achieve maximum densities on site development. The combination of setback, height, and parking requirements do not impede the ability of projects to reach the maximum density. The City of Modesto has permissive standards for development, especially in the form based code and Downtown Modesto Master Plan area. The Modesto Housing Plan adopted in 2022 conducted feasibility and spatial site plan analyses for a wide variety of housing types in a variety of contexts throughout Modesto. The plan demonstrated the feasibility of the housing types without using the maximum permitted building heights. Densities of 50 to 100 dwelling units per acre were feasible using 4-story buildings and the existing development standards.

Recent projects demonstrate that the existing development standards (including setbacks and height requirements) do not constrain development from meeting, and in many cases exceeding, the maximum allowable density in each zone. Table 71 compares the approved projects with the development standards of the relevant zone. Recent development shows that the combination of height and setbacks are not limiting projects from reaching the #20..
- 1178 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 213
maximum density. All of the projects are setback beyond the minimum setback allowed and only one project reached the maximum height allowed. The permissive development standards allow high density projects and allow projects to meet the prescribed maximum density of the zone, if applicable. The form based code allows a variety of build types and flexibility in development without regulating density.
#20..
- 1179 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 214
Table 71: Comparison of Development Standards of Recent Projects Project Zone Acreage Density Height Setbacks
Actual Max Allowed Actual Max Allowed Actual Min Allowed 235 E Coolidge R-3 0.7 29 29 14'7" 42' Front 20'
Side 5'
Rear 23'9"
Front 15'
Side 5'
Rear 5'
1011 7th St TD 0.2 40 Form Based Code 2 Stories 8 Stories Front 7' Side 5'
Rear 60'6"
Front 5'
Side 0'
Rear 0'
812 7th TD 0.56 14 Form Based Code 16'11" 8 Stories Front 5' Side 5'
Rear 34'6"
Front 5'
Side 0'
Rear 0'
1642 Sisk C-3 7.2 21 29 29'6" 42' Front 20'
Side 10'
Rear 10'
Front 15'
Side 5'
Rear 5'
3955 Coffee SP 2.83 24 29 42' 42' Front 20'
Side 15'
Rear 15'
Front 15'
Side 5'
Rear 5'
Source: City of Modesto
#20..
- 1180 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 215
Density Bonus
Modesto’s density bonus provisions are contained in Chapter 8 of the Zoning Ordinance, which implements the State’s Density Bonus law (Government Code Sections 65915 through 65917).

The purpose of the affordable housing density bonus is to expand housing opportunities for very low-, low-, and moderate-income persons, seniors, students, transitional foster youth, disabled veterans, and homeless persons throughout the City.

Residential projects of five or more units may qualify for a density bonus over the maximum allowable base density of the district. A density bonus of a certain percentage is granted to projects that have a certain percentage of the total units set aside for households at certain income levels or projects that serve certain groups. Developer concessions or incentives are granted for a residential project that meets the criteria for a density bonus project. The City will grant all concessions consistent with state law. Incentives granted by the City may include the following:
▪ Parking: a reduction in the number of spaces required by up to 0.1 spaces per unit for one incentive, and an additional 0.1 spaces per unit for a second incentive, when compared to the standard for parking set forth in California Government Code Section 65915(p).
▪ Parking: an increase in the proportion of permitted compact spaces up to 35 percent. ▪ Use of federal, state, or local affordable housing funds to subsidize the cost of the qualifying project.
▪ Approval of mixed-use zoning in conjunction with the housing project if commercial, office, industrial, or other land uses will reduce the cost of the housing development and if the commercial, office, industrial, or other land uses are compatible with the housing project and the existing or planned development in the area where the proposed housing project will be located.
▪ Deferral of City Capital Facilities Fees until the issuance of a Certificate of Occupancy for the qualifying project.
▪ Expedited processing, technical assistance, and/or use of redevelopment funds or powers.
▪ Setback: a reduction of up to 10 percent in the front yard setback. ▪ Height limitation: an increase of up to 10 percent in maximum height limitation.

The ordinance was last substantively revised in May 2023 and consistently references state law for specifics related to density bonus, and processes and procedures. #20..
- 1181 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 216
Modesto Landmark Preservation Ordinance
The ordinance establishes criteria under which historic resources are formally declared local landmarks and describes the responsibilities of the Landmark Preservation Commission. The Landmark Preservation Commission has the authority to recommend sites to the City Council for designation as Modesto Landmark Preservation Sites. ▪ The eligibility of a site for designation as a Modesto Landmark Preservation Site shall be determined by the Modesto Landmark Preservation Commission in a public hearing. The Modesto Landmark Preservation Commission shall adopt a resolution of recommendation for each site or for a district.
▪ The Commission shall forward its recommendations, together with its findings of significance and eligibility, to the City Council.
▪ The City Council, upon recommendation of the Commission, may, by resolution, designate a Modesto Landmark Preservation Site, and an appropriate presentation and/or identifying plaque may be provided for. Prior to such designation, the City Council shall hold a public hearing pursuant to the same notice provisions as required for the Landmark Preservation Commission meeting in accordance with the Modesto Municipal Code.

In cases where the landmark-eligible resource receives a pending application the Director will then determine whether an application must be made to the Landmark Preservation Commission for its written approval prior to issuance of a building permit. No building permit shall be issued until the Landmark Preservation Commission issues written approval or the Director indicates that the resource is not subject to review by the Landmark Preservation Commission.

The Commission will review the application following criteria found in Section 9-10.07. The recommendations of the Commission will be consistent with the California State Historical Building Code; and to the extent that a recommendation is inconsistent, the standards of the California State Historical Building Code shall prevail.

If within forty-five (45) days from the filing of the completed application, the Commission has neither approved or denied the building permit application, the plans and permit application shall be deemed to have been approved by the Commission, and if all other requirements of the City have been met, the appropriate department head shall authorize a permit for the proposed work.

There are no known RHNA opportunity sites on the Landmark Preservation Sites list.

Providing For A Variety of Housing Types
Table 72 shows the allowed uses in residential zones in the Zoning Code. As discussed in the next section, accessory dwelling units and junior accessory dwelling units are allowed in the R- #20..
- 1182 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 217
1, R-2, and R-3 districts. Single-family residential zoning includes three districts: R-1, R-2, and R-3. Single-family dwellings are permitted as a matter of right in all single-family residential districts. Multifamily units are permitted as a matter of right in single-family residential districts, except for the Low-Density Residential (R-1) zone.

Table 72: Allowed Residential Uses Under the Zoning Code Land Uses R-1 R-2 R-3 P-O C-1 C-2 C-3 C-M M-1 M-2 P-D SP-H Accessory Buildings P P P P P P P P P P N P
Accessory Dwelling
Unit P P P C
(4) C(4) C(4) C(4) N N N P(5) P
Junior Accessory
Dwelling Unit P P P C
(4) C(4) C(4) C(4) N N N P(5) P
Single-Family
Dwelling P
(1) P P N N N N N N N N P(2)
Manufactured
Homes P P P N N N N N N N N N
Multiple Family(3) N P P C C C C N N N P N
Mobile Home Parks N N N N N N N N N N P N
Supportive Housing P P P P P P P N N N P N
Transitional
Housing P P P P P P P N N N P N
Emergency Shelter N N N N C C C C C C N N
Source: City of Modesto Municipal Code 10-3.101.

Note: P = Permitted; C = Conditionally Permitted; N = Not Allowed (1) In R-1, one unit per lot. For corner lots, see Section 10-3.217. (2) One single-family dwelling per lot.
(3) See Sections 10-4.505(b) and 10-4.507(b). ADUs are allowed in conjunction with multiple-family development on commercial properties for which a conditional use permit has been issued in accordance with Chapter 9 Administration, Article 7 Conditional Use Permits.
(4) Residential uses are allowed in the P-O, C-1, C-2, and C-3 zones only through a Conditional Use Permit. If a Conditional Use Permit for residential uses has been approved, an ADU or JADU is permissible. A Conditional Use Permit would not be permissible expressly for the purposes of an ADU or JADU in these zones. (4) ADUs and JADUs are only permitted in P-D zones that allow residential uses.

Accessory Dwelling Units
Accessory dwelling units (ADUs) and junior accessory dwelling units (JADU) are attached or detached dwelling units that provide complete independent living facilities for one or more persons and are located on a lot with a proposed or existing primary residence. ADUs provide additional housing opportunities for people of all ages and economic levels. The City of Modesto allows and regulates ADUs and JADUs in Section 10-4.115 Accessory Dwelling Units of #20..
- 1183 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 218
Chapter 4 Development Standards of the Zoning Code. The City of Modesto permits ADUs and JADUs in any zone that allows residential uses. One ADU (attached or detached) and one JADU are allowed on any lot in a residential or mixed-use zone when there is only one existing singlefamily dwelling on the lot.

The City adopted an ADU ordinance on May 11, 2023. The ordinance updated ADU requirements to comply with state law and remove constraints to ADU development. It was submitted to HCD on May 16th, 2023 and HCD confirmed receipt on May 24th, 2023. No comments or revisions were provided. Should HCD determine that revisions are necessary to comply with state law, the City will revise its ADU ordinance through Program A - 9. The current ADU ordinance complies with state law, and the City is committed to updating the ordinance as necessary.

Senate Bill 9
Effective January 1, 2022, Senate Bill (SB) 9 requires ministerial approval of a housing development with no more than two primary units in a single-family zone, the subdivision of a parcel in a single-family zone into two parcels, or both. SB 9 facilitates the creation of up to four housing units in the lot area typically used for one single-family home.

The City has not adopted an SB 9 ordinance or objective standards. The City will amend the zoning ordinance though Program A - 15 to comply with the provisions of California Government Code Section 65852.21. The program also includes efforts to facilitate and provide technical assistance for the development of SB 9 units.

Emergency Shelters
An emergency shelter is housing with minimal supportive services for unhoused persons that is limited to occupancy of 180 days or less per calendar year by an unhoused person. No individual or household may be denied emergency shelter because of an inability to pay.

Assembly Bill (AB) 139 (2019) requires the identification of a zone or zones where emergency shelters are permitted by right. AB 139 also modified the allowed parking standards for emergency shelters. The City may now only require parking to meet the needs of staff working at the shelter and may not impose any standards based on the number of beds or persons served. The City’s Zoning Code requires that one parking space be provided per employee, which is compliant with state law.

The City’s emergency shelter requirements are provided in Chapter 3, Article 2, Specific Land Use Regulations, of the Zoning Code. Currently, only one emergency shelter is allowed as a conditional use in the C-1, C-2, C-3, C-M, M-1, or M-2 districts and they are not permitted in the Downtown zones, therefore the City code does not meet state law requirements (Government Code Section 65583).
#20..
- 1184 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 219
The City is currently in the process of amending the Zoning Ordinance to permit emergency shelters ministerially, by-right, without discretion in the C-3 district as well as modifying the definition of emergency shelters to comply with Government Code Section 65583 (Program B - 5). The amendments to the Zoning Ordinance as they relate to updating the emergency shelter standards are anticipated to be adopted in November 2023, prior to the adoption of the Housing Element. The following are the proposed development standards for emergency shelters:

1. Number of Beds. The maximum number of beds or persons permitted to be served nightly by an emergency or homeless shelter shall be determined and as allowed by Building and Fire Codes.

2. Required Parking. An emergency or homeless shelter shall provide off-street parking at a ratio of one (1) space per employee.

3. Waiting Area. An emergency or homeless shelter shall provide an on-site, client intake, waiting area to prevent queuing on public sidewalks.

4. Onsite management. An emergency or homeless shelter shall have a manager on-site during operating hours.

5. Proximity. Emergency or homeless shelters shall not be less than 300-feet apart from other emergency or homeless shelters, as measured from the nearest property lines.

6. Length of Stay. The maximum length of stay at an emergency or homeless shelter shall be 180-days in a consecutive 365-day period, or not longer than the time frame established by the California Health and Safety Code for Emergency Shelters, whichever is greater.

7. Lighting. Sites with an emergency or homeless shelter shall provide lighting in all parking, pedestrian, and entry areas. Lighting shall be in compliance with Title 24, California Code of Regulations.

8. Security. Emergency or homeless shelters shall provide on-site security during hours that the emergency shelter is in operation.

Based on the 2023 Point-in Time Count (PITC), an estimated 441 unsheltered homeless persons are located in Modesto. At 200 square feet per bed, 441 beds could be accommodated in facilities totaling approximately 88,200 square feet (2.0 acres) of floor area to accommodate the City’s estimated unsheltered need.

The City has sufficient properties in the C-3 zone to accommodate Modesto’s unsheltered population, which would require approximately 2.0 acres of land. The C-3 zone covers just over 283 acres on 246 parcels, including 135 sites and 205.5 acres currently identified in the sites inventory. This leaves approximately 77.5 acres of suitable C-3 zoned land to accommodate the most recent PITC.
#20..
- 1185 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 220
The C-3 zone is primarily located along major commercial corridors (McHenry Ave, Sisk Rd, and Yosemite Blvd) in the City which creates improved access via walking or transit to support services and community amenities. Residential uses are allowed in C-3 with a conditional use permit and must adhere to R-2 and R-3 zone standards. Residential uses that are allowed include single-family and multifamily housing. In addition to the development of vacant parcels in the C-3 zone, adaptive reuse of existing structures is another option for establishing shelter facilities without redevelopment of the properties.

Low Barrier Navigation Centers
Low barrier navigation centers (LBNC) are service-enriched shelters that are focused on moving individuals into more permanent housing. LBNCs provide temporary housing while case managers connect individuals experiencing homelessness to shelter, public benefits, and health services. Under the Housing for Homeless Act (2019), local governments are required to allow LBNCs by right in areas zoned for mixed uses and nonresidential zones that permit multifamily uses.

Modesto does not currently explicitly allow LBNCs in any zone, though this would not prevent their development if an application for one were received. The City is in the process of amending its zoning code pursuant to Government Code Section 65583 to allow LBNCs by right in areas zoned for mixed uses and nonresidential zones that permit multifamily uses, including the P-O, C-1, C-2, and C-3 zones. The amendments are anticipated to be adopted on November 7, 2023, prior to the adoption of the Housing Element. Amendments to the zoning code comply with state law surrounding LBNCs, including AB 101, are included in Program B - 5.

Manufactured Homes
The permitting of modular, or manufactured, housing on foundations is subject to the same development standards as conventional single-family units, consistent with Government Code Section 65852.3. The City of Modesto permits manufactured homes by right in all residential zones that permit single-family dwellings except in the Specific Plan-Holding Zone (SP-H). There is no constraint on the development of manufactured homes.

Supportive and Transitional Housing
Supportive and transitional housing is allowed by right in all zones where single-family and multifamily uses are permitted with no additional requirements; supportive and transitional housing are only subject to objective development and standards and policies that apply to other multifamily developments within the same zone. There are no requirements that constitute a constraint on supportive and transitional housing in the City. The City is compliant with all provisions outlined in California Government Code Section 65651. #20..
- 1186 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 221
Since 2019, the City has approved 246 units of new permanent supportive housing the City leveraged State and Federal funding in the amount of $183 million dollars. These projects included two direct awards in the amount of $5.7 million dollars in State Project Homekey funds. One of these projects included a conversion of a commercial space into 14 units of supportive housing for homeless youth and youth at-risk of homelessness in the downtown area.

Farmworker and Employee Housing
The Employee Housing Act (Health and Safety Code Section 17021.5 and 17021.6) requires local jurisdictions to consider employee housing providing accommodations for six or fewer employees as a single-family structure with a residential land use designation. The Modesto Zoning Ordinance allows unrelated individuals to live together as a household, but does not include any specific provisions related to employee housing and does not identify farm worker housing separately as a permitted use.

Through Program B - 5, the Zoning Ordinance will be amended to both streamline and define agricultural worker housing. This includes ministerially approving of agricultural worker housing that meets the requirements of Health and Safety Code Section 17021.8. The updated definitions will identify that any agricultural worker housing made up of less than 36 beds in a group quarter or 12 units or spaces can be classified as agricultural land use and permitted in the same manner as agricultural uses consistent with Health and Safety Code Section 17021.6.

Single-Room Occupancy Units
Single-room occupancy (SRO) residences are small, one-room units occupied by a single individual, and may either have a shared or private kitchen and bathroom facilities. SROs are rented on a monthly basis, typically without a rental deposit, and can provide an entry point into the housing market for extremely low-income individuals, formerly unhoused, and disabled persons.

While SRO units are not specifically defined or explicitly listed as permitted uses or unit types in the City’s Zoning Code, Modesto does not have a minimum unit size and has approved several projects for small, one room unit developments in the City. This includes a number of hotel conversions into SROs with permanent supportive housing. ▪ Kansas House: A hotel conversion turning a motel into 103 of permanent supportive housing units. The project includes services for the persons experiencing homelessness.
▪ Traveler’s Motel Conversion: A conversion of an existing hotel into 54 permanent supportive housing units.
#20..
- 1187 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 222
Development Review and Permitting Procedures
The efficiency and timing of a jurisdiction’s processes for review and approval of residential development has a significant impact on the amount and pace of housing construction. The procedures for development review and permitting in the City are described below.

Growth Management Initiative Ordinance
The City has adopted by initiative two ordinances that can constrain the extension of sewer infrastructure into proposed new residential areas. Measure A (passed in 1979) and Measure M (passed in 1997) require that any proposed extension of sewer infrastructure into newly annexed areas (beyond the existing development area) be subject to an advisory citizen vote.

Measure M expanded Measure A so that it included all sewer system improvements inside the service area.

Votes are held during regularly scheduled elections (March and November); thus they can delay the potential extension of infrastructure for up to six months.

The vote is advisory only. The positive or negative result of a public advisory election is not binding upon the City Council, which may choose to either allow or prohibit growth in these areas. One goal of the Urban Growth Policy is to maintain a 3-5 year supply of vacant residential land for future development. Public advisory elections concerning extending sewer service are typically scheduled every other year in odd-numbered years if City Council determines, through the Urban Growth Review, that the City has an inadequate supply of developable land and that the City’s infrastructure can accommodate additional development.

Additionally, the City Council has held the required advisory vote for all unincorporated areas within the City's Sphere of influence, including both expansion areas as well as County "islands".

However, no vote has been held since 2015. By 2015, the Modesto had planned for the longterm growth of the city. Modesto prepared comprehensive plans for the growth areas. It conducted numerous votes pursuant to the policy that implements Measures A and M.

No further expansion of the sewer system is planned or anticipated. Pursuant to the General Plan, all future growth will be within existing or planned sewer improvements approved in accordance with Measures A and M. The City’s growth plan is focused on infill development along mixed use corridors and not outward expansion and suburban sprawl on vacant lands.

Measure A and Measure M did not limit growth in the prior planning period as they have not been utilized since 2015. The City has no intention to utilize these Measures moving forward.

The Measures, and the implementing public votes, were made irrelevant with the final votes and system strategy in 2015. No future expansion or votes are expected. As such, the City is including Program A - 17 to formally discontinue this procedure. #20..
- 1188 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 223
Measures A and M do not limit the number of permits issued or the amount of land available for housing. There are no other growth control ordinances in the City of Modesto.

Permit Processing and Entitlement Review Procedures
The requirements of the permit processing procedure have the potential to act as a constraint to the development of housing. The time and uncertainty of the review and revision cycle can contribute significantly to the overall cost of the project, ability to obtain and maintain funding, and the cost of each dwelling unit. Certainty and consistency in permit processing procedures and reasonable processing times are important to ensure that the developmental review and approval process does not act as a constraint to development by adding excessive costs or discouraging housing development.

The City utilizes an online permit tracking process called eTRAKiT for the review of building permits. Plans are uploaded via the City website and simultaneously reviewed by each department. Once all completed reviews are received, the redlined plans are uploaded to the user’s eTRAKiT account and the user is notified so that they can review the redlined plans via eTRAKiT. Once the requested revisions are completed by the designer, the user can upload the revised plans to their permit in eTRAKiT, which then automatically routes the revised plans to City staff; when the plans have been approved, Building Safety contacts the user to obtain the permit and download the electronic plans. Entitlement applications are taken in over the counter, plans are in the works to shift this to online, through eTRAKIT, as well, however, it is uncertain when that process will be complete. The permit processing and entitlement review times for various applications are shown in Table 73. The level of project review depends on the type of project.
#20..
- 1189 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 224
Table 73: Typical Permit and Entitlement Processing Times Permit/Entitlement Type Processing Time Approval Body
Building Permit 30 Days Building Safety & Neighborhood
Preservation Unit
Conditional Use Permit 60 Days Board of Zoning Adjustment Variance 60 Days Board of Zoning Adjustment
General Plan Amendment 95 Days City Council
Specific Plan Amendment 95 Days City Council
Zone Change / Zoning
Amendment 95 Days City Council
Final Subdivision Map 60 Days Planning Commission
Parcel Map 60 Days Planning Commission
Tentative Tract Map 60 Days Planning Commission
Environmental Impact Report 120-180 Days Same as project approval body Negative Declaration 60-120 Days Same as project approval body Source: City of Modesto.

To provide a full understanding of processing time in the City, an analysis of all discretionary permit applications from 2015 through 2022 was conducted. The results demonstrated that subdivisions were approved within 169 days on average and approvals of multifamily projects were approved within 148 days on average. The average length of time for building permit approval was 56 days for multifamily and 27 days for single family projects.

The default expiration period for planning approvals in the Modesto Municipal Code is two years, however staff has the discretion to extend this period. Typically, staff has been allowing five years (5). Therefore, applicants would have to apply for a building permit prior to the planning to approval expiring.

Analysis of time periods between planning approvals and an application for a building permit show that the period varies greatly depending on a variety of powerful external influences and circumstances beyond the control of the city. These include:
▪ Preparation of detailed site and building construction plans; ▪ Whether the applicant intends to develop the property themselves or must market the entitled property for sale to a builder;
▪ The cost and availability of construction materials and labor; ▪ The need to obtain permits from other regulatory agencies; ▪ The ability to obtain project and construction financing; and #20..
- 1190 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 225
▪ Changes in market conditions.

Time periods typically range from 6 months to two years, and sometimes longer, depending on the size and complexity of the project and the external factors. These external, nongovernmental factors determine the time between project approval and requests for construction permits. There is no evidence or suggestion that Modesto’s processes create an unreasonable or significant hindrance on the construction of the city’s share of the RHNA.

Modesto has implemented extensive and meaningful procedural reforms to streamline the approval of housing to help facilitate and expedite housing production. These include:
▪ Staff-level only review (DPR) for development consistent with zoning. (Previous to this change, most residential and commercial development required Planning Commission or BZA approval).
▪ Standardized development standards in residential and commercial zones. The reduction in the previously many differences between zones complicated understanding, review and implementation.
▪ Authorized staff to approve minor deviations in development standards and reduced parking. (This previously required variance or other discretionary approval by BZA or P/C).
▪ Assign a single project planner responsible for shepherding development through the entire entitlement process, including working with other departments to resolve issues. Also using the same project planner to review building permit plans (familiarity with project). The continuity, familiarity and responsibility for the success of the project improves understanding, accuracy, efficiency and reduces errors and delays. ▪ Instituted electronic plan submittal and review. The transition from paper to electronic plans speeds submittal, transmittal, sharing, review, saves time, and improves accuracy, accountability, and allows for more efficient revisions. ▪ Established timeframes for completion of initial project reviews (e.g., completeness review in 5 days, interdepartmental referral 2 weeks, first comments in 30 days). ▪ Implementation of TrackIt system for interdepartmental review. ▪ Modesto allows applicants to process detailed construction plans (building, grading, etc.) concurrently with discretionary permit approvals. ▪ Staff is also continuing to update codes and ordinances to replace subjective review processes with objective standards that can more easily be met by design professionals prior to review. As an example, second-story review used to be a separate review process for all projects. Now, that separate review for the Mixed-Use zones and ADUs has been replaced by a set of objective standards.
#20..
- 1191 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 226
Additionally, the City recently commissioned a study of the permitting process in an effort to identify strengths, seek improvements and create efficiencies. From this study, a ten-step action plan was developed to ensure a comprehensive and timely review of all permits. The action plan was developed by the multiple divisions that makeup the Development Review Team. On May 26, 2020, the City Council adopted the Action Plan and the key performance indicators proposed by the Permitting Efficiency Task Force. Performance standards for permit review include 30 calendar days for new apartments and 21 calendar days of new single family dwellings for the first review. Resubmittals have performance standards of 15 days and 7 days for multi-family and single family developments, respectively. A Permitting Efficiency Report that reviewed projects from January – March 2022 found that the average first review time for multi-family projects was 23 days, and for single family projects was 25 days.

Typical Development Review Procedure
The City’s Development Plan Review is outlined in Section 10-9 of the Zoning Ordinance. The Director is the review authority for the Development Plan Review process, which applies to residential development in the Downtown, residential development of five for more units in the R-2 and R-3 zones and residential projects that exceed one story in the R-1, R-2, and R-3 zones. The process is typically as follows:

1. Pre-application (Optional)
a. A submittal/conference between developer and staff to ensure major issues are addressed early in the process. While optional, it is highly recommended, as it can greatly reduce time and cost of modifications to plans later in the process by catching them at the start of the permitting process. This can include identification of additional approvals necessary, constraints that will affect design, and other issues.

2. Planning Application Submittal.
a. Depending on the level of entitlement necessary, review ranges from a stafflevel Development Plan Review to a Planning Commission or City Council-level process such as a Conditional Use Permit or Planned Development Amendment.

3. Staff-level review and comment.
a. Planning staff refers out the application materials to relevant Departments, Divisions, and partners for review. The standard review period is 14 days, after which Planning staff compiles responses into a draft comment letter to the applicant. The applicant then provides any required changes or feedback. This process typically takes 30 days.
b. In cases where Specific Plan Amendments, General Plan Amendments, and specified other items require it, Tribal Consultation also occurs during this step. This additional referral takes between 30 and 90 days. #20..
- 1192 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 227
c. As part of development review plan process the City provides design feedback to applicants administratively and uses the Neighborhood Compatibility Guidelines and Multi-Family Residential Design Guidelines as guidance during the review process. City staff receive comments from multiple departments and work with applicant to address all comments comprehensively.

4. California Environmental Quality Act
a. Concurrently with Step 3 above, Planning staff prepares environmental documentation. Typically for a multi-family project, this will come in the form of a Finding of Conformance with Modesto’s Master Environmental Impact Report (MEIR), or a Notice of Exemption from CEQA. These processes typically do not add additional time beyond the 30 days for Step #3 above. i. The City of Modesto makes every effort to comply with all state laws regarding CEQA and permit processing, including compliance with California Public Resources Code sections 21080.1 and 21080.2 (time limits for determining whether certain residential projects are exempt from CEQA).
b. If a project requires additional Environmental Review to the level of a Negative Declaration, Mitigated Negative Declaration, or Environmental Impact Report additional documentation is required. If a Mitigated Negative Declaration or Environmental Impact Report is required, the project referred to Planning Commission or City Council for a decision. Additional environmental documentation takes from 3 to 12 months depending on the project.

5. Planning Commission (If Necessary)
a. If necessary, a public hearing is scheduled at the Planning Commission. This typically occurs around 60 days after application, barring major changes, need for a 90-day Tribal Consultation, or unique circumstances.

6. City Council (If Necessary)
a. If necessary, a public hearing is scheduled at the City Council. This typically occurs around 100 days after application, barring major changes, need for a 90-day Tribal Consultation, or unique circumstances.

Examples of Permit Processing Timeline.

The following are examples of the permit processing timeline of residential development projects that have received planning entitlements. The examples range from 31 to 117 days from submittal to approval, averaging 88 days, illustrating the quick timeline for approval of housing.

Stanislaus Housing Authority Workforce Housing: Conversion of an existing 148-room hotel into 148 studio apartments. (92-days to Board of Zoning Adjustment approval)

1. Application submitted for Conditional Use Permit to allow multi-family residential in a commercial zone on August 15, 2022.
#20..
- 1193 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 228

2. Application determined to be complete on September 15, 2022.

3. Application was referred to City departments and relevant outside agencies August 15, 2022.

4. Project found Categorically Exempt from CEQA under Section 15301, “Existing Facilities.”

5. Board of Zoning Adjustment Meeting October 27, 2022

6. Board of Zoning Adjustment Approval issued November 15, 2022.

The Hamptons: 436-unit, multi-family project including nineteen (19), 3-story, residential buildings on 19.8-acres. (117-days to Administrative approval)

1. Application submitted for an Administrative Development Plan Review on December 22, 2021.

2. Application was referred to City departments and relevant outside agencies December 23, 2021.

3. Application determined to be complete on January 22, 2022.

4. Assembly Bill 52 (AB 52) 30-day consultation letters sent December 23, 2021

5. Initial Study/FOC Prepared March 2, 2022

6. IS/FOC 20-day Notice Published in Modesto Bee March 6, 2022

7. DPR Approval issued April 18, 2022.

Self Help Enterprises: 45-unit, affordable, multi-family building. (31-days to Administrative approval)

1. Application submitted for an Administrative Development Plan Review on June 6, 2023.

2. Application determined to be complete on July 6, 2023.

3. Application was referred to City departments and relevant outside agencies June 7, 2023.

4. Project found Categorically Exempt from CEQA under Section 15332, “In-Fill Development Projects.” July 5, 2023.
#20..
- 1194 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 229

5. DPR Approval issued July 7, 2023.

Free Will Baptist Church: Nine (9), modular, Supportive Housing Units on church property. (112-days to Board of Zoning Adjustment approval)

1. Application submitted for Conditional Use Permit to allow multi-family residential in a commercial zone on January 23, 2023.

2. Application determined to be complete on February 23, 2023.

3. Application was referred to City departments and relevant outside agencies January 31, 2023.

4. Community Meeting No. 1, February 1, 2023.

5. Community Meeting No. 2, March 20, 2023.

6. Project found Categorically Exempt from CEQA under Section 15332, “In-fill Development Projects.”

7. Board of Zoning Adjustment meeting, April 27, 2023.

8. Board of Zoning Adjustment Approval issued May 15, 2023.

Planning, Building, and Development Impact Fees
Cities charge permit fees to recover the costs associated with reviewing and processing applications for development. Cities also charge impact fees, which are intended to mitigate the impact of a development on local facilities or infrastructure. Common examples of impact fees include school fees and utility connection fees.

Modesto’s planning fee schedule was last updated in July 2022. State law requires that these fees be true cost recovery fees and do not exceed the cost to the City to review and process the permit. As part of fee schedule updates, the City reviews the staff time and other resources necessary to process permits to ensure that fees are set at an appropriate level in compliance with state requirements. Table 74 shows a comparison of planning fees for Modesto and Stanislaus County. As shown, the jurisdictions vary in range for use permit fees. Modesto’s fees are generally lower for development plan review, tentative subdivision maps, and specific plan review.
#20..
- 1195 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 230
Table 74: Comparison of Planning Fees
Permit Type Modesto Stanislaus County
Rezone $3,988 $12,162
Conditional Use Permit with Development $5,573 $5,549 (1)- $6,631 (2) Conditional Use Permit without Development $2,654 -
Conditional Use Permit in Single-Family Dwelling $1,461 - Variance $2,654 $4,913
Variance for Single-Family Dwelling $1,461
Development Plan Review $3,625 $7,037 (3)
Final Development Plan (Planning Commission
approval)
(5) $5,573 -
Final Development Plan (Administrative approval) $3,625 - Tentative Subdivision Map $5,573 $8,954 plus $30/lot
Tentative Parcel Map $2,732
$4,823 - $5,449 plus
$30/lot depending
on the zoning
district
General Plan Amendment $6,914 $6,837
Specific Plan Review $10,000 $21,990
Specific Plan Amendment (City Council approval) (5) $6,914 - Specific Plan Amendment (Administrative approval) $3,625 - Environmental Impact Report Actual Cost, $10,000
deposit
Cost estimate
determined by on
call consultants (4)
Mitigated Negative Declaration $5,000
Negative Declaration $1,198
Initial Study $543
Accessibility Review: Americans with Disabilities Act
and California Building Code Chapter 11; Certified
Access Specialist Review and Inspection
$233/Hour ;
$115/hour -
Source: City of Modesto, Planning Division Fee Schedule Effective July 1, 2022 to June 30, 2023; Stanislaus County Planning Services Fee Schedule - Effective July 22, 2023.
(1) Non-Agriculture Zones
(2) Requiring Board of Supervisors Approval
(3) Developer agreement deposit
(4) $3,748 deposit for recirculation
#20..
- 1196 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 231
(5) Used for discretionary projects like rezones, conditional use permits, and tentative tract maps The City of Modesto imposes a couple of development impact fees, including for capital facilities, sewer, and water development. Typically, fees per unit for high-density residential are lower than fees per unit for low-density residential. Development fees for the City of Modesto for the fiscal year 2023 - 2024 are shown in Table 75.

Table 75: Infrastructure and Impact Fees
Fee Type SingleFamily Multifamily Senior
Housing ADU
Building Permit $3,284 $5,342 $5,342 $2,241(1)
Capital Facilities Fee – City Limits $16,740 $11,301 $10,395 - Capital Facilities Fees – Downtown
Economic Incentive Program $9,135 $6,034 $5,805 -
Sewer $2,643 $2,151 - $2,151
Water $2,202 $3,671–$367,065(2)- -
Total Impact Fees/Unit(3) $30,720 $23,157 $16,200 $2,151 Source: City of Modesto. Fiscal Year 2023 – 2024.
(1) New Units $2,241, Conversion/Additional Sq Ft 500 $2,349 (2) 1” Service to 12” Service
(3) Includes Capital Facilities, Sewer, and Water fees only Fees associated with new development in the City vary significantly by geographic location. As shown in Table 76, the City has 16 active Community Facilities Districts (CFDs), each with its own assessment cost for new developments. There are six RHNA opportunity sites that fall within a CFD, two in the Vintage CFD and four in the Tivoli CFD. Most areas of town are not located in a CFD and are not required to pay any CFD assessment. CFDs are created to provide a funding and reimbursement mechanism for public facilities and/or services for various specific plan areas. CFDs are the preferred method of financing infrastructure because no finding of special benefit for each parcel is required. They are also established to ensure that new development projects do not solely become the responsibility of the General Fund.

Table 76: CFD Facility and Maintenance Fees
CFD
Name17 Facilities Tax (max)
Maintenance Tax (max)
Developed
Properties
Undeveloped
Properties
Village
One $276,543.48/gross acre $268.88/unit $134.46/unit
17 Includes annexed multi-family properties (unless otherwise stated). #20..
- 1197 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 232
CFD
Name17 Facilities Tax (max)
Maintenance Tax (max)
Developed
Properties
Undeveloped
Properties
North
Beyer
Park
$54/unit $52/unit
Enterprise
Business
Park
$1,019/net taxable acre $50.35/net taxable acre
Carver /
BangsPelandale
/ Snyder
Tax Area A (Carver / Bangs): APN 078-
018-048 - $40,736.53
Tax Area B (Pelandale / Snyder): APN
078-066-003 -$26,266.26; Dale Road
Professional Park (APN 078-066-016) -
$40,172.26
Tax Area A (Carver / Bangs): $2,519.22/ net
taxable acre
Tax Area B (Pelandale / Snyder): $1,954.06/
net taxable acre
CoffeeClaratina
Subdivision Loretelli Manor fees are per
Lot and will be determined at
Annexation
$7,109.98/ net taxable acre
North
Pointe N/A
Zone 1 & 2
Maximum Maintenance Portion -
$3,436.88/ net taxable acre
Maximum Sinking Fund Portion (no
escalator) - $80.00/ net taxable acre
Fairview
Village
Maximum Maintenance Portion:
$1,245.00/lot
Maximum Sinking Fund Portion (no
escalator): $1,245.00/lot
$728.04/lot
Village
One #2 $10,521.09/ net taxable acre $10,304.66/ net taxable acre Hetch
Hetchy $179,046/lot $100,572/lot
North
Beyer
Park #2
APN 082-014-041: $7,139.58
APN 082-016-042: To Be Determined
APN 082-005-031 (Rose Villas): $77,018.60
APN 082-025-002 (Parcel 2 of 55-Parcel
Map-12): $40,049.66
Kiernan
Business
Park West
$9,475.40 - $254,713.36/lot (Depending
on APN)
$427.49 - $203,717.74/lot (Depending on
APN)
#20..
- 1198 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 233
CFD
Name17 Facilities Tax (max)
Maintenance Tax (max)
Developed
Properties
Undeveloped
Properties
Kiernan
Business
Park
South
$0 - $3,065,114/lot (Depending on APN) N/A
Kiernan
Business
Park East
#2
$204,396.12/ net taxable acre $4,375.46/net taxable acre The
Vintage N/A
Tax Area A: –
$865.68/lot
Tax Area B:
$456.54/lot
Tax Area C:
$443.14/acre
N/A
Woodglen
Single Family Residential Property:
$1,171.78/lot
Other Property: $12,675.38/acre
Single Family Residential Property:
$1,062.88/lot
Other Property: $11,497.68/acre
Tivoli
Very Low Density: $31,865/unit
Low Density: $31,865/unit
Medium Density: $31,865/unit
Medium High Density: $24,284/unit
CFD fees have the potential to be a constraint to the development of affordable housing. For example, CFD fees in the Tivoli Specific Plan are $24,284/unit for Medium High Density development. To ensure that fees do not constrain affordable housing, fee reductions or waivers are sometimes granted based on project-specific findings. Capital facilities fees have been waived for recent affordable housing projects within the City, reducing the potential adverse impact of fees on low-income development.

Since the fiscal year (FY) 2016 – 2017, there have been 109 units exempt from the capital facilities fee. Recent affordable housing developments that have been exempt from the capital facilities fee include:
▪ Housing Authority: 4 units, FY 2016-2017
▪ Stanco 4 units, FY 2016-2017
#20..
- 1199 -
City of Modesto Housing Element
Constraints on Housing
City of Modesto 234
▪ Kestrel Ridge (Housing Authority), 8 units, FY 2017-2018 ▪ Havencove (Housing Authority), 1 unit FY 2018-2019
▪ 525 Benson (Housing Authority), 3 units FY 2018-2019
▪ 1101 Carver Rd Archway Commons, 74 units FY 2020-2021 ▪ 112 James St (Stanislaus Equity Partners), 7 units FY2021-2022 ▪ 413 Vine St (Housing Authority), 35 units FY 2022-2023 School Fees
In addition to the costs above, the Modesto City School District charges development fees. The entirety of Modesto is served by the Modesto City School District. The residential development fees for the school district were $4.79 per square foot through June 30, 202318. The City does not have control over these fees, and the fees have not constrained the development of housing in recent years.