Therefore it is difficult to assess dry utilities cost factor across the city. However, as mentioned earlier, housing element sites are located in areas already served by dry utilities, so the installation of new service lines is typically not a cost factor.
Opportunities for Energy Conservation
The City of Newark has adopted a wide range of policies and programs to facilitate energy efficiency in residential development. Taken as a whole, the City’s policies and programs form a comprehensive approach to energy efficiency in residential development.
Parking
Because off-street parking often requires large amounts of land, parking requirements are one of the development standards that can most negatively impact housing development. The cost of land associated with parking, in addition to the costs of construction, paving, and maintenance, drive up the overall cost of development, requiring more funds to assist in the development of affordable housing. Parking standards in some jurisdictions have been arbitrarily established and do not necessarily represent the needs of the people living in the developments. This is especially true for senior and affordable housing developments where occupants are less likely to require more than one parking space.
The city of Newark overall has higher parking requirements than neighboring jurisdictions, Union City and Fremont. For multifamily housing, Newark has higher requirements for studio and one bedroom units than Fremont, as well as higher requirements for covered parking. Although Newark and Fremont have the same guest requirements of 0 .5 spaces per unit, Fremont does not have the same requirements for covered parking. One space per unit must be in a garage in Newark in comparison to Fremont, a requirement that can significantly increase the cost of development. Union City has the lowest guest parking requirement of 0 .25 spaces for multi family housing.
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Although it has been found that seniors do not have the same rates of driving, Newark has the highest parking requirements of all three cities for senior housing, at one space per unit.
Union City does not list a parking requirement for ADU’s, but Newark has a higher parking requirement than Fremont, which has no parking requirements at all for ADU and JADU units.
Because Newark has higher parking requirements for multi-family, senior housing and accessory dwelling units, there is opportunity for significant changes in parking requirements such as removing parking minimums and aligning requirements to be more in line with neighboring jurisdictions, responsive to construction costs and the lack of substantial off street parking for seniors. Although the City complies with State density bonus parking standards upon request, the City’s parking requirements can be a hindrance on the production of housing. In response, the city will conduct a parking study Program H3.5, to develop new parking standards to align with neighboring jurisdictions.
Table 4-9: Off-Street Parking Requirements, Newark, 2021 Residential Use Required Units Covered Parking Requirement Single-Unit
Dwelling,
Attached or
Detached
2 per unit Must be within a garage
Two-Unit
Dwelling
1.5 per studio or one-bedroom unit. 2 per unit
with two or more bedrooms.
1 Guest space per unit
One space per unit must be within a
garage
Multi-Unit
Building
1.5 per studio or one-bedroom unit. 2 per unit
with two or more bedrooms.
Guest parking: .5 space per unit.
Projects located outside a radius of 100 feet
of RS and RL districts, or separated by an
arterial street from single family homes, or
with driveway aprons, or located within a
Specific Plan shall require 1 space plus .25 per
unit
Old Town Specific Plan Area: Minimum of
1.25 per unit; maximum of 2 per unit. No
additional guest parking required.
Ten or fewer dwelling units: One
space per unit must be within a
garage
More than ten dwelling units: One
space per unit must be covered
Guest parking shall be clearly
marked as reserved for guests and
available with unrestricted access
Accessory
Dwelling Unit
No off street parking required for studio units, 1 off street parking space required per unit regardless of number of bedrooms. Off street parking requirement is waived if within a half mile of a transit stop, and other instances. To see the entire list see municipal code section 17.26.040.C.8.
Supportive
Housing
None beyond what is required for the Residential Housing Type Transitional
Housing
None beyond what is required for the Residential Housing Type HOUSING CONSTRAINTS 185
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Residential Use Required Units Covered Parking Requirement Senior Housing 1 per unit, plus .25 per unit for guest parking Residential Care
Facility (7 or more
persons)
1 for every 3 beds
Residential Care
Facilities (Less
than 7 persons)
None beyond what is required for the Residential Housing Type Family Day Care
(Small)
None beyond what is required for the Residential Housing Type Family Day Care
(Large)
1 for each nonresident employee plus an area for loading and unloading children plus parking required for the residential use
Group Residential 1 for each employee plus 1 for each guest room or every two beds, whichever is greater
Old Town Specific Plan Area: 0.25 per bedroom
Single Room
Occupancy Units
0.5 per unit
Emergency
Shelter
1 per family room, 0.35 per individual bed, plus 1 for each employee Source: City of Newark, 2022
State density bonus law (Government Code Section 65915) imposes statewide parking standards that a jurisdiction must grant upon request from a developer of an affordable housing project that qualifies for a density bonus. The parking standards are summarized in Table 4-9. When local parking requirements are higher, the statewide parking standards supersede the local requirements. The developer may request these parking standards even if they do not request the density bonus. These numbers are the total number of parking spaces including guest parking and accessible parking.
Open Space Requirements
The City has a policy in the General Plan that sets parkland standards. For multifamily housing, the open space requirement ranges from 100 square feet per unit for RM in the Old Town District, to 200 square feet per unit in RH, 300 square feet per unit in RM, and 400 square feet per unit in RL.
Open space requirements in the mixed-use and commercial districts where housing is allowed (CMU and RC) are at 50 square feet per unit. Overall, these standards are the same or lower than the requirements of Newark’s closest neighbors. These standards are typical of many jurisdictions in the Bay Area and would not significantly reduce the affordability of multifamily housing units.
Further, the City has not received developer feedback that its open space requirements are excessive or a barrier to feasibility.
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Density Bonus Regulations
State law (California Government Code, section 65915-65918) requires cities and counties to approve density bonuses for housing developments that contain specified percentages of affordable housing units or units restricted to occupancy by seniors. A density bonus is the allocation of development rights that allows a parcel to accommodate additional square footage or additional residential units beyond the maximum for which the parcel is zoned. Projects that qualify for a density bonus are also eligible for reduced parking standards and additional concessions, or incentives. Upon the developer's request the City must also allow the parking standards shown above in Table 4-6. The legislature has made frequent changes to State density bonus law over the years, including AB 1763, which significantly increased density bonus provisions for 100 percent affordable projects.
Building Codes and Enforcement
Building codes and their enforcement influence the style, quality, size, and costs of residential development. Such codes can increase the cost of housing and impact the feasibility of rehabilitating older properties that must be upgraded to current code standards. In this manner building codes and their enforcement can act as a constraint on the supply of housing and its affordability.
Building and housing codes establish minimum standards and specifications for structural soundness, safety, and occupancy. State housing law requires cities and counties to adopt minimum housing standards based on model industry codes. In addition to meeting the requirements of State housing law, local governments enforce other State requirements for fire safety, noise insulation, soils reports, earthquake protection, energy conservation, and access for people with physical disabilities. The enforcement of building and housing codes for all homes is per the minimum standards and requirements set forth in the codes listed in the City’s building code. Standards for rehabilitation are no more rigorous than those contained in the California Health and Safety Codes and Uniform Building Codes.
On October 13, 2022, the City Council approved Ordinance No. 539, repealing and replacing certain chapters of Title 15 (Buildings and Construction) to adopt by reference, with modifications to address local conditions, the 2022 editions of the California Building Standards Code (CBSC) and related codes. Ordinance No. 539 includes local amendments to the California Administrative Code, California Building Code, California Plumbing Code, California Electrical Code, California Residential Code, California Mechanical Code, and California Fire Code. The adopted Title 15 including local amendments is provided on the city’s website, www.newark.org. The local amendments adopted with Ordinance No. 539 do not increase requirements above standards.
Generally, the local amendments provide clarifications and consistency with other sections of the Newark Municipal Code. The city does not have a REACH code. In addition, local amendments were made to provide consistency with fire protection, alarms, and detection system requirements of the Alameda County Fire Department, the agency that provides contract fire HOUSING CONSTRAINTS 187
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protection services in Newark.
Building codes and their enforcement can increase the cost of housing and impact the feasibility of rehabilitating older properties that must be upgraded to existing code standards. In this way building codes and their enforcement can act as a constraint on the amount of housing and its affordability. However, the codes enforced by Newark are similar to other cities in the region and are necessary to promote the minimum standards of safety and accessibility to housing.
Therefore, the codes are not considered to be an undue constraint on housing investment or development.
In some cases, energy conservation requirements may increase construction costs and, therefore, the initial sales prices and cost of rent. However, these increased costs are often offset by the longterm reductions in the utility’s component of housing operation costs. Accessibility modifications may also increase initial sales prices and rents but will help address the housing needs of the elderly and people with disabilities.
Code Enforcement
The Building Division is responsible for enforcing both state and City regulations governing maintenance of all buildings and property. The Community Development Department is responsible for code enforcement activities through the Community Preservation Division. The purpose of code enforcement of housing in need of rehabilitation is to ensure the safety of the City’s residents; without basic living standards being met, life and safety are threatened. The city does have a code enforcement division to address health and safety concerns in the community.
Currently, the City operates on a complaint-based system to respond to code enforcement needs.
The Community Preservation Division will respond to complaints and investigate violations to ensure compliance with the City’s Municipal Code. In 2021, the city expanded the number of full-time employees by hiring a code enforcement manager to oversee existing efforts and create proactive code enforcement services, which would include the rental inspection and landlord registration program identified in Program H1.2.
State of California, Article 34
Article 34 of the State Constitution requires local jurisdictions to obtain voter approval for specified “low rent” housing projects that involve certain types of public agency participation.
Generally, a project is subject to Article 34 if more than 49 percent of its units will be rented to low-income persons. If a project is subject to Article 34, it will require an approval from the local electorate. This can constrain the production of affordable housing, since the process to seek ballot approval for affordable housing projects can be costly and time consuming, with no guarantee of success.
Local jurisdictions typically place a measure or referendum on the local ballot that seeks authority to develop a certain number of low-income units during a given period of time. If the electorate approves general parameters for certain types of affordable housing development, the local HOUSING CONSTRAINTS 188
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jurisdiction will be able to move more quickly in response to housing opportunities that fall within those parameters.
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B. Non-Governmental Constraints
The availability and cost of housing is strongly influenced by market forces over which local governments have little or no control. Nonetheless, State law requires that housing elements contain a general assessment of these constraints, which can serve as the basis for actions to offset their effects. This section describes primary non-governmental constraints to the development of new housing in Newark.
Availability of Financing
The availability of financing is a critical factor that can influence the cost and supply of housing.
There are generally two types of financing used in the housing market: (1) capital used for initial site preparation and construction; and (2) capital used to finance the purchase of units by homeowners and investors. Financing is largely impacted by interest rates. Small fluctuations in interest rates can dramatically influence the ability to qualify for a loan. Mortgage interest rates have a large influence over the affordability of housing. Higher interest rates increase a homebuyer’s monthly payment and decrease the range of housing that a household can afford.
Lower interest rates result in a lower cost and lower monthly payments for the homebuyer.
Because interest rates are determined by national policies and economic conditions, there is little that local governments can do to affect these rates. Jurisdictions can, however, offer interest rate write-downs to extend home purchase opportunities to lower-income households. In addition, government-insured loan programs may be available to reduce mortgage down-payment requirements.
The cost of borrowing money to finance the construction of housing or to purchase a house affects the amount of affordably priced housing in Newark. Lower initial rates are available with graduated payment mortgages, adjustable rate mortgages, and buy-down mortgages. Variable interest rate mortgages on affordable homes may increase to the point where the interest rate exceeds the cost of living adjustments, which is a constraint on affordability. Although rates are currently low, they can change significantly and substantially impact the affordability of housing stock. Fluctuating interest rates can eliminate many potential homebuyers from the housing market or render a housing project infeasible that could have been successfully developed or marketed at lower interest rates. Housing prices in Newark are unaffordable for lower-, moderate-, and even some above moderate- income households, even with the lower interest rates. The primary constraint on homeownership in Newark is not the availability of financing, but the cost of housing, of which is unaffordable to many households.
Financing for both construction and long-term mortgages is generally available in Alameda County subject to normal underwriting standards, though rates have increased markedly throughout 2022. A more critical impediment to homeownership involves both the affordability of the housing stock and the ability of potential buyers to fulfill down payment requirements. Conventional home loans typically require 5 to 20 percent of the sales price as a down payment, which is the largest HOUSING CONSTRAINTS 190
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constraint to first-time homebuyers. This indicates a need for flexible loan programs and a method to bridge the gap between the down payment and a potential homeowner’s available funds. The availability of financing for developers under current economic conditions may also pose a constraint on development outside of the City’s control.
According to the Alameda Board of Realtors, there is no evidence of “redlining” of any Alameda neighborhood by the financial community. The City provides Community Development Block Grant (CDBG) funding for counseling for individual clients regarding fair housing rights and responsibilities and to disseminate education and information materials. Households receive intensive counseling, and legal and/or agency referral for cases involving discrimination against families, racial or religious minorities, and individuals with disabilities.
Land Costs
As with most built out Bay Area communities, the high cost of land is a constraint to the production of affordable housing in Newark. There are very few vacant parcels zoned for residential development left in the city and it is rare for vacant residential land to be listed for sale.
Based on a review of land for sale in Fremont, Union City, and Hayward, land prices for land zoned to accommodate multifamily projects range from $5M to $15M per acre depending on locational amenities, density, and other factors. In addition to market sales prices, there can be other costs associated with the acquisition of land including the cost of holding the property throughout the development process. Developers in Newark also face added expenses associated with the demolition and removal of existing structures or remediation of contaminated soil.
Construction Costs
In addition to the high cost of land, construction costs can also act as a constraint to the production of new housing, particularly in the Bay Area. The cost of construction depends primarily on the cost of materials and labor, which are influenced by market demand. The cost of construction will also depend on the type of unit being built and on the quality of product being produced. The cost of labor is based on a number of factors, including housing demand, the number of contractors in the area, and the unionization of workers. The construction cost of housing affects the affordability of new housing and may be considered a constraint to affordable housing in Alameda County and throughout the Bay Area.
Both material and labor costs have increased substantially in recent years. Supply chain issues during the Covid-19 pandemic are partly responsible for recent material cost increases, and a shortage in the construction labor market is adding significantly to the cost of producing housing.
According to a 2020 report by the Terner Center, hard construction costs for multifamily projects in California rose by 25 percent over the course of a decade, from an average of $177 per square foot in 2008-2009 to $222 per square foot in 2018. Cost increases were even greater in the Bay Area, increasing by 119 percent and reaching more than $380 per square foot in 2018.
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Construction costs vary widely according to the type of development. According to the Terner Center report, Type I projects, which are typically over 5-7 stories and constructed with steel and concrete, cost an average of $65 more per square foot than other types of construction, like Type V (i.e., wood frame floors over a concrete platform). Type I projects are more likely to be found in infill locations where zoning allows higher density construction.
Affordable housing projects also cost more on average than market-rate and mixed-affordability projects. The 2020 Terner Center report found that affordable projects cost $48 more per square foot on average compared to market-rate and mixed affordability projects. Some of the added costs for affordable housing are because many affordable housing developers are required to pay “prevailing wages.”
A reduction in construction costs can be brought about in several ways. A reduction in amenities and quality of building materials in new homes (still above the minimum acceptability for health, safety, and adequate performance) may result in lower sales prices. State housing law provides that local building departments can authorize the use of materials and construction methods if the proposed design is found to be satisfactory and the materials or methods are at least equivalent to that prescribed by the applicable building codes.
In addition, prefabricated, factory-built housing may provide lower-priced products by reducing labor and material costs. As the number of units built at one time increases, savings in construction costs over the entire development are generally realized as a result of an economy of scale, particularly when combined with density bonus provisions.
C. Environmental Constraints
Environmental issues affect the amount, location, and timing of new residential development in Newark. Sites in Newark are susceptible to a variety of environmental constraints including sea level rise and flooding, seismic hazards, sensitive ecological areas, and hazardous materials.
Geologic Hazards
Geologic Hazards are associated with earthquakes that can bring about risks such as ground shaking, landslides and tsunamis. Newark sits two miles west of the Hayward fault, and due to this proximity, ground shaking levels would be higher in the southern and western portions of the city.
Ground shaking is measured on a scale ranging from I to X (the Modified Mercalli Scale) with shaking levels ranging from imperceptible to very violent. Most of the developed portions of Newark would experience “very strong” ground shaking (level VIII) in a 6.7 Hayward Fault earthquake, but some parts of the city would experience “violent” ground shaking (level IX).
The city has a sandy loam soil type that is prone to liquefaction. The city of Newark could experience seismic shaking levels with the potential to cause liquefaction in areas where groundwater is generally shallower than 30 feet. Based on data provided by the California HOUSING CONSTRAINTS 192
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Geological Survey, the entire city is considered a liquefaction hazard zone.
Flooding and Sea Level Rise Due to Climate Change
Flooding can have devastating effects on property and residents and impact water quality in Newark housing element housing opportunity sites in Newark may be affected by flooding and sea-level rise. Newark falls within both 100 and 500 year flood zones as well as being affected by sea level rise. The 100 year flood zone covers areas 3 and 4 as well as a number of sites in the Bayside Newark specific plan area. The 500 year flood plain is found further into established residential areas of the city.
The area with the most vulnerability to sea level rise will be in the southern portion of the city, adjacent to the San Francisco Bay. Sea level rise not only affects housing, but other infrastructure such as roads, water and sewer infrastructure.
The City’s Municipal Code sets standards to minimize flood hazard risks, including anchoring and flood-proofing and a requirement that the lowest floor, including basements, is at or above the 100-year flood elevation. Development within the 100-year flood zone is limited, with requirements for building at least 1 foot above the flood elevation. The City requires non-residential development to be elevated at least 8 feet above mean high tide and 11.25 feet for residential development
Hazardous Materials
Hazardous materials regulations, which are codified in Titles 8, 22, and 26 of the California Code of Regulations (CCR), and their enabling legislation set forth in Chapter 6.95 of the California Health and Safety Code, were established at the state level to ensure compliance with federal regulations to reduce the risk to human health and the environment from the routine use of hazardous substances. These regulations must be implemented, as appropriate, and are monitored by the state (e.g., Cal OSHA in the workplace or the DTSC for hazardous waste) and/or local jurisdictions.
As with many infill urban locations, many of the housing element housing opportunity sites in Newark are on former industrial or commercial properties. These properties typically have environmental issues related to the prior use. The city of Newark has a high number of existing sites with hazardous materials, a legacy of their industrial land use.
Despite their historical use, all of the housing element sites are either already remediated of their hazardous materials and ready for residential use or are in the process of being remediated of hazardous materials to allow for residential use pursuant to approved plans by the appropriate regulatory agency.
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Sensitive Ecological Areas
The southwest portion of Newark contains a number of riparian areas, transitional areas between the water and land that support periodic flooding and habitat. They are typically vegetated with lush growths of grasses, shrubs, and trees that are tolerant of periodic flooding and have sediments that are rich in nutrients and organic matter. Riparian areas are found in Site 2, Sanctuary West, also referred to as specific planning area 3 and 4.
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SECTION 5 HOUSING RESOURCES
Key resources in Newark to address housing needs include housing sites (see Appendix C below), financial resources, administrative resources and non-profit resources. In addition to a robust inventory of sites available for housing development during the Housing Element planning period, the City is also implementing an ambitious affordable housing work plan 13 which includes the
provision of regular financial assistance to nonprofit sponsors of affordable housing through a regular “Notice of Funding Availability” (NOFA) process. Leveraging the City’s affordable housing impact fee fund, the City will continue to deploy substantial financial resources to support affordable housing production during the planning period. In addition, the City will implement policies to streamline affordable housing approvals and continue to partner with developers of affordable housing as detailed in the following section, Housing Plan.
A. Available Sites For Housing
The most important resource for meeting Newark’s future housing needs is a sufficient supply of land zoned for housing and with supportive infrastructure and pro-housing policies and programs.
As shown in Appendix C, the City has developed a robust inventory of sites to accommodate its 6th cycle RHNA of 1,874. Combining planned and proposed projects that are already in the development pipeline with vacant and non-vacant sites that are zoned for housing and already permit housing to be developed without additional changes to the Zoning code, the sites in Appendix C have the potential to accommodate 2,854 units, representing over 150 percent of the City’s RHNA. This includes sites to accommodate all of the City’s lower-income housing needs for the 6yh cycle in addition to a significant buffer.
Sites included in the City’s 6th cycle inventory are described in detail in Appendix C and displayed below in Figure 5-1.
The sites selected for this Housing Element have also been selected to achieve the following major policy objectives:
Access to Opportunity: The sites work to expand access to opportunity by siting 46 percent of affordable units in areas identified as high opportunity by the Tax Credit Allocation Committee.
Connecting Housing and Transit: Priority Development areas plan to connect new housing with regional and local transportation options in existing and new walkable communities; 29 percent of new housing sites are located within two Priority Development Areas in Newark which are the Dunbarton TOD (now known as Bayside Newark) and the Old Town Mixed Use Area.
Neighborhood Revitalization: Through the implementation of the NewPark Place Specific Plan, the former Newpark Mall will transform into a mixed-use neighborhood, with 1,519 new housing 13 Newark Affordable Housing Work Plan
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units, including new homes for low and moderate incomes. Pedestrian and bicycle infrastructure improvements will also be developed through a multiphased redevelopment. Similar revitalization efforts are reflected in the sites identified in Newark’s other key specific plan areas in the Old Town area and Bayside Newark.
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Figure 5-1: Housing Sites for the RHNA 6th Cycle
Source: City of Newark; Planning Collaborative, 2023.
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B. City Financial Resources
Along with housing, financial resources are critical for meeting Newark’s future housing needs.
These include funding and financing programs to provide gap funding for affordable multifamily housing programs, loan and grant programs for first time homebuyers, and home rehabilitation grant and loan programs. The major sources of funding for affordable housing at the Federal and State levels are constrained and highly competitive, and in this context local funding sources for affordable housing are increasingly critical.
Key resources at Newark’s disposal include HUD HOME and CDBG funds, allocated to ongoing housing programs through a process overseen by the City’s Community Development Advisory Committee (CDAC). As noted elsewhere in this Housing Element, the most important source of funding support for new affordable housing production in Newark is the City’s Affordable Housing Impact Fee fund, which has collected upwards of $35M in recent years. $19M of this fund has been allocated by the City to support three affordable housing developments which are included in the City’s development pipeline: 1) $2.8M for the entitled but not yet built Timber Street Senior Apartments sponsored by Eden Housing; $4.5M for the Cedar Community Apartments; and 2) $12M awarded to Satellite Affordable Housing Associates to support the development of a new 56-unit development on three underutilized sites that will be assembled. The City retains a balance in June of 2023 of 23,450,000 million in the Affordable Housing Impact Fee fund. The City anticipates issuing regular funding NOFAs to continue to partner with nonprofit sponsors of affordable housing.
The ability of the City to effectively deploy these local financial resources is also critical to the community’s ability to leverage other sources of funding from Federal, State, regional and private sources. An important recent example of this is the award last year of $38.2M in State of California Project Homekey funding for the Cedar Community Apartments; this was one of the largest allocations of funding received by any jurisdiction in California for the recent funding round.
C. Other City and Partner Agency Resources
Housing Programs in Newark are administered by the City’s Community Development Department. The Department works actively to partner with residents, housing providers and other public agencies to facilitate housing production, preservation and rehabilitation in Newark.
Additional key resources provided by partner agencies include:
● Alameda County 2-1-1. 2-1-1 is a free, non-emergency, confidential service that provides easy access to housing information and critical health and human services. ● Alameda County Housing Authority. The Housing Authority administers programs throughout the County including portable
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● Section 8 vouchers for eligible Newark Households. The authority also provides information on housing resources, housing assistance, rental assistance, affordable land and housing, and public housing.
● Alameda County Housing Portal. This portal, which is under development, will provide a central location for affordable housing rentals and information, county-wide. Support for multiple languages is available. www.housing.acgov.org
● COVID-19 Renter Assistance. AC-Housing Secure is a program that offers assistance with unpaid back rent. Renters and landlords are encouraged to apply. There is a high demand for assistance, but additional program funds have been requested. Applicants will not be asked about their citizenship. Proof of citizenship is not required. Support for multiple languages is available. www.ac-housingsecure.org
● ECHO Housing. ECHO Housing provides fair housing services and tenant/landlord counseling and mediation to Newark residents. Renters who believe they have been discriminated against or who need assistance for a dispute with their landlord can contact ECHO at (510) 581-9380. www.echofairhousing.org
● Fremont Family Resource Center. The Fremont FRC is a welcoming place where families and individuals are nurtured, encouraged, and provided quality services to build on their own strengths to help themselves and others. Fremont FRC serves the entire Newark community, as well as Union City and Fremont.
● AC Boost Down Payment Program. AC Boost provides financial assistance to middle-income working households to purchase a home in Alameda County. The program offers shared appreciation loans to first-time homebuyers who live in, work in, or have been displaced from Alameda County. AC Boost is funded by Alameda County Measure A1 and administered by nonprofit organization Hello Housing. www.acboost.org ● Alameda County Healthy Homes. Alameda County has programs and funding opportunities to promote healthy and safe homes. Grants are available for minor home repairs, including the removal of lead hazards. These programs are available to qualified Newark households. www.achhd.org
● Renew Alameda County. Renew Alameda County helps homeowners make renovations necessary to stay, grow, and thrive in their homes. Renew AC is administered by Alameda County with funding provided by the Measure A1 Housing Bond. The program is operated by Habitat for Humanity East Bay/Silicon Valley. www.renewac.org ● Urban County Emergency Mortgage Assistance Program. The Alameda County Urban County Emergency Mortgage Assistance Program ("EMAP") is intended to provide financial relief for lower income homeowners living in the Alameda County communities (including Newark) who have experienced a loss of income resulting from the COVID-19 pandemic. www.heraca.org/emap
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SECTION 6 HOUSING PLAN
A. Evaluation of Accomplishments Under Adopted
Housing Element
The City of Newark has developed and implemented various programs and policies to address its housing needs during the previous housing element’s planning period (2015 to 2023). The following table provides a detailed program-by-program review of progress and performance. This information will help ensure that the updated element for 2023 to 2031 builds on success, responds to lessons learned, and positions us to better achieve our community’s housing needs and priorities.
During the 5
th Cycle, the City put in place new policies to help fund and create new affordable housing into the future such as creating a comprehensive affordable housing work plan that will invest 80% of its Housing Impact Fee funds; financing affordable housing production that supports those at risk of or experiencing homelessness; and applying for state, county, regional, and federal funds to construct affordable housing for low income and special needs households. The City also laid the groundwork for future housing and envisioned transit-oriented development (TOD) by producing an Old Town Development Strategy and rezoning its Dumbarton TOD site. It adopted a Specific Plan for Old Town with recommendations and actions to add up to 400 residential units to the planned area and one for Dumbarton TOD that has resulted in the approval or construction of approximately 828 units.
Additionally, the City of Newark has led the way in establishing new policies and programs to affirmatively further fair housing and support communities with special housing needs in obtaining access to housing. The City built a 75-unit affordable complex with universal design features (Newark Station Senior Apartments) and has approved plans for a 79-unit 100% senior housing development with deep levels of affordability (Timber Street Senior Housing). It has modified its building code to require universal design to be applied to both private and public housing and approved 180 units with universal design. Newark has also adopted an Ordinance establishing a process that allows flexibility within the zoning code for reasonable accommodation of access for the disabled and is prepared to adopt a fair housing ordinance for the sixth housing element cycle.
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Table 6-1: Review of Policies and Programs of 5th Housing Element Cycle Program 5
th Cycle Activity Summary Status for 6th Cycle
1. Work with Lower
Income Housing
Developers and
Prioritize Funding
The City worked with nonprofit and for-profit housing developers and organizations to support efforts to create new housing for seniors, people with disabilities, formerly homeless people, households with moderate incomes or below, especially including extremely low income households, and other special needs populations. The City developed a comprehensive affordable housing work plan to engage developers and prioritized funding for housing for people with special needs and very low income people. As provided in the work plan, Newark will invest up to 40% of its Housing Impact Fee fund balance (or approximately $12 million) for funding a NOFA to incentivize affordable housing development. In addition, Newark will invest an additional 40% of the Housing Impact Fee fund balance for site acquisition meant to facilitate affordable housing development. Consistent with the City Council-approved Fiscal Year 2022-2023 Affordable Housing Work Plan, in June 2022, the City of Newark invited developers of affordable rental housing to submit applications for funding assistance under a Notice of Funding Availability (NOFA). A total of approximately $12 million was made available from the City’s Affordable Housing Impact Fee Fund. The City received one response from Satellite Affordable Housing Associates (SAHA) requesting $12,000,000 of funding from the City’s housing impact fee fund g to construct a 57-unit multifamily apartment building at 6347-6375 Thornton Avenue that would meet the need for family-sized units. On January 19, 2023, the Community Development Advisory Committee on January 19, 2023 reviewed the proposal against the NOFA selection criteria and recommended approval. On March 23, 2023, the City Council reviewed and approved the proposed funding decision as well as authorized the City Manager to execute the Affordable Housing Loan Agreement and all related loan documents to effectuate the approval of the funding award. SAHA will complete the acquisition of the subject properties in April. After conducting community outreach, SAHA expects to submit their formal entitlement application in Summer 2023. In 2021, the City approved plans for “Timber Street Senior Housing”, a 79-unit 100% senior housing development, to be built by Eden Housing. The location of the project was rezoned from Limited Industrial District to Medium Residential Density to revitalize the area from a light industrial and warehouse space to a walkable residential neighborhood. A minimum of 20% of the units would have rents restricted at 60% AMI and the remaining units would have rents restricted at no more than 80% AMI. The final AMI unit allocations have not been formally established, but Eden Housing anticipates that most units would have affordability levels deeper than 80% AMI.
Ongoing. The City will retain this
program and expand it by creating
additional programs to
supplement it. It will conduct
focused outreach to Housing
providers annually throughout the
6 th Cycle.
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Program 5
th Cycle Activity Summary Status for 6th Cycle
The City granted two incentives/concessions (parking and setbacks) and three waivers (lot coverage, landscaped area, open space) to help facilitate the project and residential density.
The entitlements for the project were approved on 10/28/2021 and are expected to be constructed in 2023.
● City staff worked with Adobe Services on a Homekey project to convert an existing hotel to supportive housing, which consists of a total of 125 units (1 unit for the on-site manager and 124 units for rent permanent affordable housing). The breakdown of the 124 units for rent permanent affordable housing is 60 units for chronically homeless households and 64 units for households at risk of homelessness; all of which would be for extremely low-income households. On 9/22/2022, the City Council approved a Resolution (Resolution No. 11408) Project Homekey Standard Agreement which includes $38.2 million Homekey grant funds and $6 million City funds. A building permit for the tenant improvement for the project has been issued on 12/22/2022.
2. Support Regional
Homeless Initiatives
The City has provided continuous support for regional efforts to end homelessness, such as the Alameda County EveryOne Home Program, which prioritizes supportive housing. The City adopted a resolution declaring a shelter crisis in the City of Newark and authorized the City’s participation in the Homeless Emergency Aid Program (HEAP). It further authorized the City Manager (or his designee) to execute all applications and agreements related to HEAP and other State and County funding sources for homeless populations (Resolution No. 10867 on December 13, 2018). The City of Newark partnered with the City of Fremont’s Continuum of Care program to allocate its $229,000 of HEAP funding. The funding was mainly used to provide:
● Expanded Warm Center hours;
● Expanded “Homeless Navigation” services;
● Development of a site for the safe parking of recreational vehicles and vans; ● offering time limited housing subsidies
The City also took definite action to set aside affordable housing funds for projects through the HomeKey grant program, an effort to provide affordable housing in existing hotels and buildings to low-income households and those experiencing or at-risk of homelessness. In early 2022, the City Council authorized City staff to apply to the State’s HomeKey grant program for a grant of up to $39 million and allocated $1.5 million of American Recovery Plan Act (ARPA) funds, as well as $6 Ongoing. The City will retain this
program into the next Cycle.
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Program 5
th Cycle Activity Summary Status for 6th Cycle
million from the City’s Housing Impact Fee fund to acquire Towne Place Suites Hotel with Abode Services and Allied Housing. The Town Places Suites project would convert an extended-stay hotel into 124 permanent, supportive affordable residential units known as Cedar Community Apartments.
Additionally, the City has taken on a variety of other initiatives to address issues of homelessness.
The Police Department conducts a more in-depth count of its homeless population on a regular basis. The City partners with Caltrans and Alameda County Human Services Agency to address homeless encampments on public property, and with the Fremont Family Resource Center to provide support to Newark households at risk of becoming homeless. It has also created a Homelessness Committee with members from various City departments to coordinate actions and responses to homelessness in the community.
In May 2022, the Alameda County Board of Supervisors, along with City Councils throughout Alameda County, endorsed the Home Together 2026 Strategic Community Plan. The Plan is a five-year strategic initiative that centers racial equity, and identifies the strategies, activities, and resources needed to dramatically reduce homelessness in Alameda County. The City will continue to participate in the Home Together 2026 plan to address issues at the local and regional levels.
City adopted a resolution declaring a shelter crisis in the City of Newark and authorized the City of Newark's participation in the Homeless Emergency Aid Program (HEAP); and further authorized the City Manager or his designee to execute all applications and agreements related to HEAP and other State and County funding sources for homeless populations. Resolution No. 10867 on December 13, 2018.
● The City Council approved a Resolution (Resolution No. 11408) Project Homekey Standard Agreement which includes $38.2 million Homekey grant funds and $6 million City funds on 9/22/2022 for the conversion of an existing hotel to supportive housing Homekey project.
● On 5/12/2022, City Council adopted a Resolution (Resolution No. 11,341) for Home Together, a county-wide initiative (Home Together 2026) to address homelessness.
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Program 5
th Cycle Activity Summary Status for 6th Cycle
3. Continue Repair and
Rehabilitation Program
Each year, a portion of Newark’s CDBG funds is dedicated to the Housing Repair and Rehabilitation Program according to a formula approved by the Alameda County Urban County jurisdictions. The City entered into an agreement with the County of Alameda for participation in the CDBG Program for FY20-21 and the Community Development Advisory Committee made recommendation to the City Council for the use of Jurisdiction Improvement funds for ADA compliance needs at Music Park and Civic Center park on February 18, 2020.
Overall, the minor repair program has been very successful in the past. However, the home repairs in 2020 and 2021 were slightly lower than expected due to the COVID-19 pandemic.
Conversations with county staff revealed that many homeowners were hesitant to allow contractors into their homes during the last two years out of fear of COVID-19 transmission.
Nonetheless, the City of Newark has funded 49 projects in the current 5 th Cycle.
In discussion with the Alameda County HCD staff, there is no plan to change or substitute the program with any other during FY22-23. The City will continue to participate in the program and will increase community awareness of the program through various city communications tools.
Through its continued participation, the City is expected to meet and likely exceed its goal of funding 65 projects by the end of the cycle.
Ongoing. Assuming continued
CDBG funding, the City will
continue to participate in the
program.
4. Civic Center
Replacement
Staff and consultants prepared a Newark Civic Center feasibility study (completed in June 2016) that assessed the facility needs for a new civic center. The study, informed by two City Council work sessions and a community meeting, included a brief description of locations throughout Newark that were considered for the new civic center. Ultimately, the feasibility analysis focused on the current civic center site as the location for the new civic center. There was no discussion of HE Program 4 as it related to the civic center site, and no discussion of affordable housing as a possible use of the site. The new civic center, which includes city hall, a police building, and library was completed in 2021. Additional analysis would be required to assess the feasibility for affordable housing on remaining city-owned portions of the site. The site retains the Residential High-Density zoning designation and Public-Institutional general plan land use.
Not completed. Affordable
housing was ultimately not
considered as a land use during
the civic center replacement
feasibility study. Replacement of
the civic center was the only
projectthat was considered.
5. Old Town
Development Strategy
The City completed an Old Town Development Strategy in 2017 to facilitate the development of higher density housing in subareas N, M, and O of the Old Town area, with the goal of yielding 228 higher density housing units by 2022. In 2019, two community meetings were held (March 13 and Completed. The City will work to
further the recommendations of
the Old Town Newark Specific
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Program 5
th Cycle Activity Summary Status for 6th Cycle
June 26) followed by a Joint Work Session on December 12 th
to develop the Old Town Newark
Specific Plan. The City was granted a Planning Grant Program award of $160,000 for the preparation of this plan.
In 2021, the City adopted the Specific Plan, which includes a feasibility analysis of sites within the area as well as various policies and strategies that are targeted at reducing barriers to housing in the area. For example, Policy LU-1 focuses on zoning amendments that strategically increase density in certain areas. Policy LU-16 revises zoning regulations to revise parking design standards and reduce the parking demands per unit, thus making units more affordable. Policy INF-1 & INF-2 recommend infrastructure improvements which increase water and sewer capacity which are needed to increase residential density in the area. Additional recommendations included as part of the plan are to reduce or eliminate development impact fees and require inclusionary affordable housing. Overall, the Plan recommendations and actions will add up to 400 residential units to the planned area, far exceeding the goal of 228 units.
Plan within the next few years to
advance development.
6. Fair Housing
Programs
The City signed an Inter-Governmental Collaboration Agreement for the Completion of the Analysis of Impediments to Fair Housing Choice for Community Development Block Grant Program on March 14, 2019 (Resolution No. 10,904). The Analysis of Impediments (AI) was completed in January 2020. To achieve the AI Metric and Milestone for Activity 1.c to “advocate for local federal/state laws that would improve fair housing protections for those experiencing barriers to accessing housing”, the City of Newark’s CDD will develop and adopt a fair housing ordinance by FY 2023 for consideration by the City Council. This ordinance will clarify and publicize the prohibition against discrimination in housing and will assist the implementation of Federal Fair Housing regulations. As part of the ordinance, the City will either refer or respond to fair housing complaints.
Ongoing programs and initiatives
as documented in Section 3:
AFFH.
7. Housing Accessible to
the Disabled
The City has made it a priority to provide housing that is accessible to disabled people, who comprise 7.6% of the population in Newark, through universal design requirements. Pursuant to the Health and Safety code, HCD has specified that the Building Standards Commission provide documentation of these requirements in the California Building Code. Chapter 11A of the building code outlines the City’s accessibility requirements for private housing, including a mandate for adaptable design in all ground floor units that was established in 2013, while Chapter 11B outlines Ongoing. The City will continue to
use Chapter 11A and 11B as an
effective method to increase
housing accessibility.
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Program 5
th Cycle Activity Summary Status for 6th Cycle
the requirements for public housing. During this 5th Cycle of Housing Elements, the City has approved 180 units with universal design.
In 2018, the Newark Station Senior Apartments was built with universal design features. This complex, which can house 75 families, was the first affordable apartment community to be built in the City of Newark in at least 25 years.
8. Seek Funds for
Affordable Housing
The City applied for state, county, regional, and federal funds to construct housing for low income and special needs households as well as funding to provide infrastructure that supports housing development. For instance, the City applied for the Alameda County Measure A-1 Bond Competitive grant for $6.5 million. An investment of those funds will go to the Timber Street Senior Housing mentioned in Program 1.
In addition, the City has raised money through impact fees from market-rate housing development per the Affordable Housing fee program adopted by Council in 2014. This ordinance is codified in Chapter 17.18 of the Municipal Code. The fee is based on square footage of the project: $21.52 per square foot of floor area is charged for the first 1,000 square feet and $8.62 per square foot is charged for floor area above 1,000 square feet, excluding garages, carports or common areas. To date, approximately, $24 million in impact fees have been deposited in the Affordable Impact Fee Fund to support projects or programs that preserve and/or increase the supply of affordable housing in Newark.
Ongoing. The City will evaluate
funding each year and apply for
funding as appropriate.
9. Adopt Reasonable
Accommodation
Ordinance
The City adopted an Ordinance in 2016 establishing the process for allowing flexibility within the zoning code for reasonable accommodation of access for the disabled.
The ordinance includes:
● Clear rules, policies, and procedures to promote equal access to housing and comply with fair housing and disability laws including but not limited to identifying who may request a reasonable accommodation (i.e., persons with disabilities, family members, landlords, etc.), timeframes for decision-making, and provisions for flexibility in the various land-use, zoning, or building regulations that may otherwise constrain housing for persons with disabilities. Chapter 17.37 of the City’s Zoning Ordinance outlines the process for Ongoing.
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Program 5
th Cycle Activity Summary Status for 6th Cycle
requesting a waiver to any zoning regulation to allow improvements to an existing building in order to provide reasonable accommodations for persons with disabilities. ● Regularly monitoring the implementation of the jurisdiction’s ordinances, codes, policies, and procedures to ensure they comply with the “reasonable accommodation” for disabled provisions and fair housing laws.
● Reduced parking requirements for projects serving seniors and persons with disabilities (The Zoning Ordinance was revised in 2018 reducing parking requirements to 0.5 spaces per unit, inclusive of guest parking).
10. Rezone Dumbarton
TOD
Development in the Dumbarton Transit Oriented Development (Site Q) is governed by a Specific Plan which has numerous requirements and amenities. The Specific Plan supports and controls development within the 200-acre area, promoting a comprehensive development plan to encourage the creation of a livable community designed for compatible neighborhoods with connectivity to parks, open space, the future Transit Station, and commercial services. These important project elements are assured concurrent with the rezoning application.
Most of the Specific Plan has been built-out or is under construction. Construction activities include the previously approved residential uses, streets, sidewalks, landscaping, utilities, and open spaces. The Specific Plan limited residential development to 2,500 units for the entire Specific Plan area. To date, approximately 1,836 units have been approved or constructed.
In February 2021, staff provided City Council with an overview of the rezoning activities within the Dumbarton TOD, now known as Bayside TOD. The Bayside TOD developer has summarized development of approved projects, the development that was anticipated in the Specific Plan, and the development table including the current project under review, FMC Willow.
Completed. The Bayside TOD
area will be built out in phases,
with plans for the last site to be
entitled before the end of 2023.
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B. Housing Plan: Goals, Objectives, Policies, and
Programs
This Chapter pulls from what the city has learned from extensive community engagement and data, to develop seven goals to further affordable housing production and housing mobility, increase opportunity and protect residents from displacement. The programs have an implementation timeline of immediate (0-3 years) mid term, (3 to 5 years), long term (5-8 years) and ongoing programs. The city will track program progress through the identification of responsible department and performance metrics through the 6th cycle.
IMMEDIATE: 2023-2025
MID TERM: 2026-2028
LONG TERM: 2029-2031
ONGOING: This is an existing policy or program that will be continue to be implemented GOALS
GOAL H1: Preserve and Improve Existing Housing
POLICY H1: Leverage local funds to supplement county, state and federal funding to support the maintenance, rehabilitation and preservation of existing rental and ownership housing.
GOAL H2: Facilitate the Development of More Homes for
More People
Supporting the development of housing that is affordable and accessible to allsegments of the community.
POLICY H2.1: Create opportunities for new housing for moderate income households through zoning adjustments to promote missing middle housing types such as courtyard housing, duplex and small multi family homes.
POLICY H2.2: Second Units. Recognize second units (also known as Accessory Dwelling Units (ADUs) and in-law apartments) as an important part of Newark’s housing supply and continue to allow such units, subject to parking, ownership, and size HOUSING PLAN 208
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standards that are consistent with State law. [ongoing] POLICY H2.3: Promote and facilitate new affordable housing partnerships with various organizations with different housing needs that include but are not limited to the following:
● Community serving nonprofits
● Newark Unified School District
● Community college districts
POLICY H2.4: Work with community partners and property owners to revisit a community visioning plan for the Four Corners neighborhood/community commercial area.
POLICY H2.5: Support programs aimed at housing vulnerable and special needs populations.
Monitor the need for housing for seniors across all income groups and for various levels of care, and support programs and incentives that encourage the development of a variety of age-friendly housing options.
POLICY H2.6: Develop and adopt a Universal Design Ordinance to ensure new construction is accessible to residents in all phases of life and regardless of their physical abilities.
POLICY H2.7: Update the existing Reasonable Accommodation requirements of the Zoning Ordinance and adopt [Ongoing]
POLICY H2.8: Support regional homeless initiatives and develop robust and equitable local responses to people experiencing homelessness.[Ongoing] POLICY H2.9: Increase housing for large households as stated in the Affordable Housing Work Plan (which may be amended from time-to-time). Large households are defined as those with five or more people. The city will review existing site development regulations and design guidelines to ensure that the city is not unintentionally restricting housing designs that meet the needs of extended, multigenerational, and/or large families such as 2 + bedroom units, to reduce overcrowding and assist in maintaining the affordability of existing housing stock.
POLICY H2.10: Evaluate annual housing production targets to ensure the city is meeting the RHNA goals.
GOAL H3: Reduce and Remove Constraints to Affordable
Housing Development
Removing barriersto developing affordable housing is key in meeting the goal of providing housing that is accessible to all residents, regardless of income and responsive to the unique ecological and natural environment of the city.
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POLICY H3.1: Allow By-Right Approval of Projects with 20 Percent Affordable Units on “Reused” Sites. Pursuant to AB 1397, amend the Zoning Ordinance to require by-right approval of housing development that includes 20 percent of the units as housing affordable to lower-income households, on sites being used to meet the 6th Cycle RHNA that represent “reuse sites” previously identified in the 4th and 5th Cycles Housing Element, and on sites that are subject to a text amendment to accommodate the lower-income RHNA.
POLICY H3.2: Increase certainty of entitlement procedures and accessibility to resource information for developers. Prepare a comprehensive set of guidelines and associated process diagram for all of the city’s processes and fees related to residential development generally and affordable housing specifically.
POLICY H3.3: Ensure there is a sufficient supply of multifamily and single-family zoned land to meet the housing needs identified in the Regional Housing Needs Allocation (RHNA).
GOAL H4: Help People Stay in Their Homes and Communities POLICY H4.1: Develop programs that support homeowners and tenants remain in their homes and communities with a focus on low and moderate income residents and BIPOC households.
POLICY H4.2: Preservation of unsubsidized affordable units. Many low income residents depend on unsubsidized housing at below market rates, which is vulnerable to investment and speculation. Work with nonprofit organizations that may acquire at-risk projects to extend affordability of existing unsubsidized affordable housing for lower-income households. These policies aim to prevent displacement of low-income BIPOC communities, long-term renters, and other marginalized residents by preserving currently affordable housing and creating pathways for permanent affordability.
POLICY H4.3: Sites Acquisition for affordable housing. The city will proactively work to identify opportunities for partnering with other local public sector agencies and private landowners to acquire sites for affordable housing, as well as to seek creative ways of partnering with developers to include affordable units in market-rate projects.
GOAL H5: Increase Access to Affordable Housing
POLICY H5.1: Continue to generate funding for affordable housing and seek additional funding opportunities as they arise.
POLICY H5.2: Bring home ownership within reach for Newark residents. Develop a BMR HOUSING PLAN 210
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homeownership program, and down payment assistance programs, with a focus on first time home buyers.
POLICY H5.3: Prioritize the use of City-owned property for affordable housing prior to other uses (if the sites are feasible and appropriate for housing), and prioritize housing for extremely low income households.
POLICY H5.4: Amend the existing Inclusionary Housing Ordinance to require on-site production of units rather than allowing the payment of an in-lieu or impact fee to support increased access to affordable housing opportunities across the city and in high opportunity areas.
POLICY H5.5: Develop an affordable notice of funding availability (NOFA) that will be released regularly to incentivize new developments consistent with the City’s goals of increasing affordable housing opportunities for residents that are families, low income seniors, and residents with disabilities.
GOAL H6: Enhance Quality of Life,Equity, and Environmental Justice
POLICY H6.1: Identify the various existing and potential funding sources for infrastructure / public facility needs, including local, State, and Federal money.
POLICY H6.2: Urban Centers. Implement existing specific plans for NewPark Place and Old Town, creating locations in Newark which are more urban and pedestrian-oriented in character than they are today. These areas will be transformed over time into mixed-use centers with retail, office, civic, and higher density housing uses. [Ongoing policy]
POLICY H6.3: Land use and transportation policy that encourages active transportation and transit oriented development. Make land use and transportation decisions that reduce emissions, including promotion of walking and bicycling, improvements to public transportation, and a jobs-housing balance that reduces vehicle commute miles.
POLICY H6.4: In partnership with local non profits and city departments, work to promote energy efficiency and wise water use in new and existing residential buildings in order to reduce energy costs, provide quality and resilient housing, improve building comfort, and reduce greenhouse gas emissions.
POLICY H6.5: Allow and encourage green building practices and energy efficient construction, such as Cross Laminated Timber buildings, solar installations, and electrification of buildings.
POLICY H6.6: Urban Heat Island Effect. Develop standards and requirements for municipal HOUSING PLAN 211
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projects that can incorporate natural cooling techniques to reduce the urban heat island effect.
POLICY H6.7: Residential Development in the FloodPlain. Limit development within low-lying areas at high risk from flooding. Require any new residential development, including streets and other surface improvements, to be constructed above the 100-year flood elevation.
GOAL H7: Further Fair Housing Throughout the City
POLICY H7.1: Improve awareness, access, and use of education, training, complaint investigation, mediation services of the fair housing service provider, particularly in areas sensitive to displacement, low-income, racial/ethnic concentration, disability or other fair housing considerations.
POLICY H7.2: Promote affirmative marketing in affordable housing programs to enable mobility among low-income residents and BIPOC residents in areas of poverty and segregated neighborhoods.
POLICY H7.3: Address barriers to renting and increase tenant support. Low income households and people experiencing homelessness face obstacles that prevent them from accessing housing that is affordable to them.
PROGRAMS
PROGRAM H1.1: Housing Rehabilitation and Repair Programs Continue partnership with Alameda County's housing rehabilitation and minor home repair programs, Renew Alameda County, and contracting with Rebuilding Together Oakland East Bay.
Encourage participation in these programs by Newark property owners for the maintenance of local rental homes and homeowners. The City shall continue to apply for Community Development Block Grant (CDBG) funds on an annual basis. The City shall give high priority for the expenditure of a portion of CDBG funds for housing rehabilitation, and directly contract with the County to administer the housing rehabilitation services. The City shall also use HOME funds, as available and appropriate, to support housing rehabilitation for lower-income households.
Quantified Objective: The City plans to support 13 households per year with home rehabilitation. The city will facilitate place-based revitalization by focusing on lower-income households with rehabilitation programs and promoting availability of programs in areas with a high concentration of housing in need of rehabilitation and repair, such as the Old Town and Mirabeau Park areas.
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Responsible Agency: Community Development Department
Timeline: ONGOING: Continuation of existing program
Funding Source(s): HOME and CDBG funds as available
PROGRAM H1.2: Develop citywide rental inspection program to maintain high quality housing throughout the city.
Rental Inspection Program / Landlord Registration. The Rental Inspection Program enhances the quality of rental properties and thereby the quality of life for tenants throughout the City and ensures that all rental properties are maintained in accordance with City standards. City inspectors inspect rental properties for code violations and will issue corrective reports with recommendations for improvements to property owners/landlords and tenants. The property owner will be expected to have the property reinspected to ensure the repairs have been made.
Examples of reportable issues include: roof leaks, unsafe fire conditions, mold, unsafe stairs and lead based hazards per AB 838.
Quantified Objective: Update Newark’s Community preservation and nuisance abatement ordinance to create a proactive citywide rental inspection program, and develop an online reporting system for tenants to report substandard housing conditions. Support 12 rental units in improved condition per year.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Program developed by June 30, 2024 Funding Source(s): Affordable housing fund, Community Development Maintenance Fund PROGRAM H2.1: Develop new housing options in areas of the city close to services such as parks, schools and grocery stores, with existing infrastructure.
Missing middle housing will provide for an increase in housing choice in established single family neighborhoods, enabling more moderate income homes within walking distance to schools and parks. SB 9 requires ministerial approval of housing developments containing no more than two residential units on lots zoned for single family residences. Adopted simultaneously with SB 9, SB 10 provides for SB 10 allows local agencies to adopt ordinances to permit up to 10 dwelling units on any parcel, at a height specified in the ordinance, if the parcel is within a transit-rich area or urban infill site. Implementing SB 9 and SB 10 ordinances, along with pursuing Program H2.8:
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Zoning for Missing Middle Housing Types, will provide additional opportunities for new housing in a variety of neighborhood types throughout the city.
Quantified Objective: Draft and implement SB 9 and SB 10 ordinances to provide additional opportunities for missing middle housing. Review the City’s Zoning Ordinance and Subdivision Ordinance and implement updates as needed to provide clarity and facilitate housing development under SB 9. These include adopting updated definitions, use regulations, development standards, and ministerial processes. Production and affordability will be monitored every two years and alternative actions will be implemented if necessary to meet the RHNA. In coordination with research being conducted at the State level, pursue opportunities to incentivize and provide funding assistance for homeowners to provide affordable units under SB 9 to further housing opportunities and more affordable homeownership options in high opportunity areas.
Develop and implement the City’s SB 9 Ordinance to expand the housing supply in single-family zones by allowing for lot splits, cottage housing developments, triplexes and duplexes. 120 moderate income SB 9 units developed during the housing element cycle, with a focus on expanding housing opportunity in neighborhoods in the northern portion of the city.
Through programs such as H3.2, Objective Design Standards and H3.5, Parking standards update and study, the city will be able to ensure that development standards, including parking and open space requirements, are not a constraint to development.
Adopt an SB 10 Ordinance to allow up to 10 units to be developed on smaller residential parcels throughout the City, with a goal to produce 80 units of missing middle housing, targeting 75% of these units in neighborhoods in the northern portions of the city, including Lake-Rosemont, Mirabeau, and Mayhews Landing Neighborhoods.
The quantified objective for Missing Middle for Programs H2.1 and H2.8 is a total of 200 units.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Ordinance developed by June 30, 2025 Funding Source(s): Community Development Maintenance Fund Missing Middle Housing
House-scale buildings with multiple units in walkable neighborhoods. These building types, such as duplexes, fourplexes, cottage courts, and backyard cottages (accessory dwelling units), provide HOUSING PLAN 214
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diverse housing options and support locally-serving retail and public transportation options.
PROGRAM H2.2: Accessory Dwelling Unit (ADU) Program.
Develop tools to support uptake of accessory dwelling units production in Newark, in collaboration with Alameda County. Newark will comply with state law until the updated existing Accessory Dwelling unit ordinance is in compliance with state law.
Accessory Dwelling UnitIncentive Program. Develop a program to incentivize construction of ADUs that are deed-restricted for very low, low, and moderate income households.
Quantified Objective: ● Increase viability and uptake of accessory dwelling units though through a multi pronged approach. Develop an ADU calculator to be available for Newark residents, pre approved plans, and increase community outreach, in partnership with Alameda County.
● Work to develop a series of incentives and a low interest loan program (if feasible in collaboration with Alameda County) to bring more ADU production for affordable rental housing to the city, specifically in areas that are identified as high in opportunity by the Tax Credit Allocation Committee.
● Per SB 897, Increase height limits for detached accessory dwelling units on a lot with an existing multifamily or multistory building to 18 feet and 25 feet if the unit is attached to a primary dwelling. ● Per AB 345, Accessory Dwelling units built or developed by non profit entities to be sold separately from the primary residence to a qualified buyer.
● Remove parking requirements.
● Revise ordinance to comply with state law.
Responsible Agency: Community Development Department, Alameda County Timeline: IMMEDIATE: ADU Community outreach to begin in 2024, pre approved plans to be finalized by 2025. The Alameda County ADU Resource website will function as a resource for community members interested in constructing an ADU. The site currently includes an ADU calculator and in the future will include a how to handbook and instructional videos. The City will revise its ADU ordinance to comply with state law in 2024.
MID-TERM: Accessory Dwelling Unit Incentive Program developed by June 30, 2026, with the goal of 144 very low, low and moderate income units with 25% in high opportunity areas, and 160 total units constructed HOUSING PLAN 215
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during the housing element period.
Funding Source(s): Community Development Maintenance Fund, Housing Impact Fee Fund PROGRAM H2.3: Facilitate market-rate and affordable
housing and promote neighborhood revitalization in the
Four Corners area through increased mixed use
development and walkability.
Quantified Objective: Creation of a community guided plan for the Four Corners area (in between Lake-Rosemont and Mirabeau Neighborhoods), to bring housing and local retail to the area. The plan will consist of community engagement, with the objective of developing community-led decision making around housing, commercial space and public infrastructure improvements. As a key element of the community guided Four Corners area plan, the city will incorporate the Transit Oriented Communities (TOC) development policies and requirements as a portion of the Four Corners area is within a transit priority area. The Four Corners area is zoned for community commercial, which does not allow for residential development by right, but housing may be considered as a component of planned developments within these areas in the event a shopping center is reused. The regulations provided in AB2011 are available to property owners, to facilitate the redevelopment of older underutilized strip malls in the Four Corners area.
For example, per state law AB2011, 4.5 acres of underutilized land can be developed with mixed income housing at 80 dwelling units per acre due to being within 0.5 miles of the proposed Ardenwood rail stop as part of the South Bay Connect rail realignment project.
The community-guided plan will include zoning and site development standards that will incentivize the development of multi-unit housing, with a target of 360 units on existing commercial properties in the Four Corners area. As part of the plan, the City will establish or modify development standards to facilitate maximum densities.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Community outreach in 2024, MID TERM: neighborhood plan developed by June 30, 2025, rezoning completed by December 31, 2025
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PROGRAM H2.4: Universal Design Ordinance.
This program supports residential development that incorporates Universal Design features to meet the needs of as many users as possible. The intent is to reduce the potential for occupants to be displaced from their homes due to a disability, to allow those persons to visit neighboring dwelling units, and to increase the number of accessible dwelling units in the local housing supply that meet long term housing needs by creating a process that facilitates this type of accessible design.
Quantified Objective: Develop a Universal Design ordinance for new construction of single family, accessory dwelling units, duplex and building 20 units or larger.
Responsible Agency: Community Development Department, Building Division Timeline: MID-TERM: Program developed by June 30, 2025
Funding Source(s): Community Development Maintenance Fund PROGRAM H2.5: Develop a local response to support people experiencing homelessness.
Develop a local response to support people experiencing homelessness, with specific attention to the racial disparities and large population of youth and families.
Quantified Objective: The City of Newark adopted a resolution endorsing the Alameda County Home Together 2026 Implementation Plan to address homelessness.
Newark is preparing a local homelessness plan intended to be consistent with the Home Together 2026 Plan, which will further the objectives of the County plan. The City will maintain a city webpage to (www.newark.org/residents/homelessness) provide a connection to resources for those at risk of, or experiencing homelessness. The City has responded to homelessness needs by proactively partnering with an affordable housing developer and services provider to create and support 124 units of housing for homeless households and people at risk of becoming homeless.
To develop this plan, the City shall work with the appropriate homeless agencies, community stakeholders, and faith-based organizations to identify new strategies, funding, and opportunities to provide new emergency shelter and transitional housing options and address the needs of 40 unsheltered persons (in addition to the completed 124-unit HomeKey project) annually in need of emergency shelter or temporary housing.
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Responsible Agency: Community Development Department/City Manager’s office Timeline: IMMEDIATE: Homelessness plan developed by the end of 2024 Funding Source(s): Housing Impact Fee Fund
PROGRAM H2.6: Work in Partnership with the Newark Unified School District
Work in partnership with the Newark Unified School District to plan for affordable housing production and build upon the existing partnership between the City of Newark and Newark Unified School District Liaison Committee. Collaborate to bring forward cohesive and implementable plans for District owned properties, and expand the accessibility of housing resources for families, educators and staff in the district. This program will also expand housing opportunities throughout the city, into high opportunity, predominantly single family neighborhoods.
Quantified Objective: Develop a strategy in collaboration with the Newark Unified school district and the community on a long term development plan and funding for the redevelopment of school district owned sites.
AB 2295 supports housing development on property owned by a local educational agency for teachers and staff on both active and vacant district owned properties. AB2295 establishes minimum standards for development, including a minimum of 10 units, deed restricted for affordability for 55 years and be offered to district teachers and staff. The units are required to be for low and moderate income households, with thirty percent of units required to be for very low incomes. The development standards are 35 feet, with a minimum density of 30 dwelling units per acre.
Responsible Agency: Community Development Department, City Manager’s office, Newark City Council, Newark Unified School District
Timeline: MID-TERM: Program developed by end of year, 2025 Funding Source(s): Community Development Maintenance Fund PROGRAM H2.7: Affordable Housing Development Fund
The city will provide financing for affordable housing construction of at least 343 lower-income units. They are sites 13,11,9 on the sites inventory. The housing will serve very low to moderate income households, with an emphasis on young families, key workers (teachers, first responders, etc.), individuals and families at risk of homelessness, people with disabilities and other special HOUSING PLAN 218
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housing needs, and low-income senior citizens.
● SAHA Development: 6347-6375 Thornton Avenue
New construction with a total of 56 very low income units, with one on site management unit. 16 units are 3 bedroom units that are suitable for larger families, a housing priority for the city of Newark. The site is located along Thornton Ave, in a moderate resource area as defined by TCAC.
● 37660 Timber Street: Timber Senior Housing
New construction of 78 very low and low income housing units for seniors. The site is located in an area identified as a moderate resource area. The development is close to transit and services – less than a quarter of a mile to a bus station with easy access to downtown Newark and the Fremont and Union City BART stations. Near the site is a retail plaza with restaurants, dentists and optometry offices. The NewPark Mall is a five minute bus ride away and Newark Civic Center is less than a mile from Timber Street. The project is being funded by measure A funds, and a significant contribution from the city of Newark from the affordable housing fund. Construction is slated to begin in 2022. ● Cedar Community Apartments at Towne Place Suites, Project Home Key development As a Project Home Key development, the Cedar community apartments are the reuse of an existing extended stay hotel. The development will result in 124 supportive units affordable to extremely low-income households, with 12 units set aside for veterans and one manager's unit. Cedar Community Apartments is located in an area identified as high resource by TCAC in close proximity to schools, shopping and the Silliman Activity and Family Aquatic Center.
Quantified Objective: Support the development of at least 343 lower-income units.
Responsible Agency: Community Development Department, City Council Timeline: Ongoing
Funding Source(s): Affordable Housing Impact Fee Fund, Alameda County Measure A1, Home Key Grant Funds, Launch Initiative
PROGRAM H2.8: Zoning for Missing Middle Housing Types.
Along with the implementation of SB 9 and SB 10 through Program H2.1, the City shall review and amend the Zoning Code and applicable design guidelines to encourage and promote a mix of dwelling types and sizes, specifically missing middle-density housing types (e.g. courtyard housing, duplexes, triplexes, fourplexes) to create housing for middle- and moderate-income households and increase the availability of affordable housing in a range of sizes to reduce displacement risk for residents living in overcrowded units or overpaying for housing.
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Quantified Objective: To remove constraints and better encourage small multi-family developments in the RS, RL, and RM zoning districts, particularly in the northeast area of the city, including Lake-Rosemont, Mirabeau, and Mayhews Landing neighborhoods, zoning text amendments will be implemented.
Within 12 months of Housing Element Adoption, staff shall recommend a specific proposal to the city council for consideration and adoption to increase baseline density to at least 15 dwelling units to the acre in key high opportunity areas in RL zones. Recommendations would include amendments to zoning, appropriate development standards to facilitate maximum densities including but not limited to: eliminating minimum lot size requirements, reducing setbacks, and eliminating minimum unit size requirements. In addition, the city will adopt a development standard waiver system for cases when development standards may preclude development to the maximum allowable density. The City shall evaluate the effectiveness of meeting missing middle housing targets of these strategies in 2027, including but not limited to further increasing development intensity in RL zones within the following year to achieve more inclusive neighborhoods throughout the City.
Zoning text amendments to may include, but are not limited to:
● Minimum Lot Size: 5,000 square feet for all building types. ● Minimum Lot Width: 50 feet for all building types.
● Parking Requirements: Parking requirements include a minimum of 1 space per unit for a multifamily dwelling outside the specific plan areas and mixed-use zones, Remove requirements for covered parking spaces, allow parking to be located within required setbacks, and remove guest parking requirements. ● Open Space Requirements: Review 400 square foot/unit
requirement in RL zoning districts.
● Study feasible densities, identify sites, corridors, and neighborhoods for intensification. Develop a strategy to increase allowable densities to at least 15 du/ac, housing choices and affordability in RL and high opportunity areas with a target of 200 moderate-income units in the planning period (as noted in Program H2.1)
Zoning text amendments will be implemented to support the overall strategy to encourage small, multi-family developments.
The City shall evaluate the effectiveness of meeting missing middle housing targets of these strategies by 2027, including but not limited to further increasing development intensity in single family zones within the following year, to achieve more inclusive neighborhoods throughout the City.
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Responsible Agency: Community Development Department, City Council Timeline: IMMEDIATE: Community engagement and zoning changes by December 31, 2024
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PROGRAM H2.9: Area Specific Plans
NewPark Place Specific Plan The multi phase redevelopment of a shopping mall, will bring new mixed-use residential development to the area. The City worked closely with Brookfield on entitlements for Phase A, with plans for new mixed income housing and a Costco. Subsequent phases will include additional residential development, small scale retail and pedestrian infrastructure such as bike lanes and human scaled streets.
Though Phase A entitlements have now expired, the City will continue to partner with the developer to implement the Newpark Place Specific Plan to meet the affordable housing goals of the City of Newark.
The original entitled project included a total of 319 units, 29 of which would be affordable (4 very low, 9 low, and 16 moderate). The project included 3,700 square feet of ground floor retail, 12,900 square feet of amenities (such as a bike shop, club room, co-work space, and fitness center), a pool courtyard, and enclosed parking. Along Alpenrose Drive, the structures was planned to be six stories, with five residential levels over ground floor retail and amenities.
Old Town Specific Plan The Old Town Newark Specific Plan, adopted September 23rd 2021, sets forth a community informed plan to support public and private investments in the historic neighborhood. The planning area is envisioned as a mixed-use area that accommodates a range of housing types, retail and service business, expanded public spaces, and mobility improvements. To anticipate this development, this Specific Plan:
• Refines zoning regulations to align with market conditions and balance community desires for form and massing
• Develops programs to support investment in the community and continued affordability for people who live and work in the community today
• Identifies streetscape improvements for Thornton Avenue • Provides scenarios and prototypes for how future development could build out in the Commercial Mixed Use (CMU) and Residential Medium (RM) Zoning designations Zoning Amendments: Modifies zoning standards in the Commercial Mixed Use (CMU) and Residential Medium (RM) districts to align development standards, use requirements, and design standards with current market conditions and building types.
Streetscape Improvements: Identifies a streetscape plan for Thornton Avenue as a catalyst for neighborhood revitalization and investment of new housing. The streetscape plan will complement improvements in the private realm and create a safe destination for residents and visitors, whether on bike, foot, or in a vehicle.
Bayside Newark A Transit Oriented Development community to be built next to the proposed Dumbarton Commuter Rail station. Due to the proximity of high capacity transit, this area is also a HOUSING PLAN 222
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priority development area for Newark.
On 9/22/22, The City of Newark approved land use modifications proposed by Lennar Home Builder, FMC Corporation, and Integral Communities within the FMC Willow and Grand Park portion of the Bayside Newark Specific Plan area. The proposed modifications would redevelop the 22.1-acre site into a 370-unit multi-family community including 279 townhouse units, a
1.6-acre mixed-use area with 3,600 sq. ft. of retail, club room, fitness center, and 90 affordable units (plus 1 manager unit) within a 6-story building, a 5-acre community park (Grand Park), and a 1,485 sq. ft. community building, along with approx. 1.8 acres set aside for the future Dumbarton transit station.
The South Site of the project, known as “FMC Willow South”, (Grand Park, PA 3, and PA 4) would include a 1,485 square foot community building, 123 multifamily units, and 92 townhomes for a total of 215 units. The 123 units would be UA Split (multifamily), and 92 would be UA Towns (townhomes). The UA Stacks would have 5 floorplans ranging from 1,696 square feet to 2,015 square feet. The UA Splits would have a standard option with 4 floorplans ranging from 1,307 square feet to 2,108 square feet and a 4-story option with 4 floorplans ranging from 1,307 square feet to 2,422 square feet. The homes would be 3-5 stories high.
Quantified Objective: 1,594 total units for the three specific plan areas. 147 very low, 101 low, 82 moderate and 1,263 above moderate units.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE, MID- and LONG-TERM: Development underway and though 2031
Funding Source(s): Development within Area Specific Plans are privately financed.
Community Development Maintenance Fund
PROGRAM H2.10: Single Room Occupancy Housing
In order to expand the housing options in Newark, the city will support a wider variety of housing types that would be accessible for low-income working people, retirees, people receiving disability payments and newcomers to the area. Single Room Occupancy (SRO) units provide small units for a single person, with shared amenities such as kitchens or bathrooms. Along with commitments in Program H4.10: Zoning Ordinance Amendments for Special Needs Housing, the City shall update the zoning code to facilitate the development of more SROs and small units.
Quantified Objective: In order to support an increase in this housing type in the city, SROs will be permitted use in Residential Medium Density, Commercial Mixed Use and Residential High Density, with a priority for SRO development to occur along transit corridors. Review and update existing development standards (Chapter 17.26.230), including parking requirements, to ensure HOUSING PLAN 223
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they are not a barrier to the development of SROs. City fees for SRO projects will remain in line with fees for multifamily projects.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: updates to land use regulations in zoning code by early 2024. SRO development standards and fee requirements to be reviewed and updated as necessary by December 2024.
Funding Source(s): Community Development Maintenance Fund PROGRAM H2.11: Catalyze the development of small sites
through a lot consolidation incentive program
The city commits to continuing improvement, evaluation, and adjustment of programs during the housing element cycle to ensure quantified objectives are being met.
Quantified Objective: Implement a lot consolidation incentive program to catalyze development on small sites. The program would include deferring fees specifically for consolidation, expediting permit processing, providing flexible development standards such as setback requirements, reduced parking or increased heights, committing resources for development of affordable housing on small sites, and/or increasing allowable density or lot coverage.
In addition, the city will adopt a development standard waiver system for cases when city requirements may preclude development on small sites.
Responsible Agency: Community Development Department
Timeline: MID-TERM: Review and implement in mid 2025
Funding Source(s): Community Development Maintenance Fund PROGRAM H2.12: Ensure maximum residential densities are achievable
The city commits to annually review, and amend as necessary, the Municipal Code to ensure that maximum allowable densities are achievable on sites zoned for housing.
Quantified Objective: Review, and amend as necessary, city requirements and development standards in all zones that allow residential development to ensure that maximum densities are achievable. This includes those standards and requirements related to maximum units per building, maximum building HOUSING PLAN 224
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coverage, required open space per unit, minimum lot area, setbacks, height limits, parking (also see Program H3.5) and limits on allowable densities. Specifically, remove the MUP requirement for buildings over 35 feet in the RM and RH zones and review whether the 60-foot height limit in the CMU zone (outside of the Old Town Specific Plan area) is a constraint on development and make needed changes, or allowing for flexibility to achieve maximum allowable densities.
The analysis will consider impacts on cost, supply, housing choice, affordability, timing, approval certainty and ability to achieve maximum densities and include programs to address identified constraints.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: City will initially review city requirements and development standards in 2024 and on an annual basis thereafter, and amend the appropriate requirements and standards as necessary to the Municipal Code.
Funding Source(s): Community Development Maintenance Fund PROGRAM H3.1: Streamline Ministerial Approval Permit
Procedures
The City will review and update its approval processes to ensure it accommodates streamlined applications, pursuant to Senate Bill 35.
Quantified Objective: Prepare and publish administrative procedures by 2024 for the processing of housing developments eligible for streamlined review pursuant to SB 35.
Assign a staff member to support the streamlined development review process. This staff person will be a point of contact for affordable housing developers that will work to create a clear and streamlined process.
Responsible Agency: Community Development Department
Timeline: MID-TERM: Prepare and publish new procedures by 2024, assign staff as necessary to achieve the objective by June 30, 2026
Funding Source(s): Community Development Maintenance Fund PROGRAM H3.2: Develop objective design standards for single family and multi family developments and infill housing.
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Identify parking standards, setbacks and height standards to facilitate development that is responsive to fluctuating costs and results in high quality design.
Quantified Objective: Develop new objective design standards that result in designs that reflect the needs of the community while supporting new developments that are responsive to local ecological conditions and climate change while reducing development costs where applicable.
Responsible Agency: Community Development Department
Timeline: MID-TERM: Ordinance and zoning changes implemented by June 30, 2024
Funding Source(s): Community Development Maintenance Fund PROGRAM H3.3: Assess and update impact fees
Assess and update impact fees as required to ensure that it is in line with neighboring jurisdictions and not a hindrance to development.
Quantified Objective: The city will undergo a comprehensive impact fee study to assess and update the impact fee structure to reflect the needs of the community and ensure fee structure is in line with neighboring jurisdictions. ● Currently the policy in the Old Town Specific Plan area is to temporarily reduce fees to encourage development.
● The city will provide a fee waiver for senior and housing for people with disabilities
Responsible Agency: Community Development Department/Finance Department Timeline: IMMEDIATE: Study would be part of the Affordable Housing work plan.
Funding Source(s): Community Development Maintenance Fund PROGRAM H3.4: Adjust zoning to allow mixed use in current Commercial zones
In order to align zoning with planned development areas and associated policies of developing pedestrian friendly, walkable neighborhoods, the city proposes to utilize State laws SB6 and AB 2011 to encourage residential and mixed use developments in current commercial zones. A project proposed under SB 6 may be either a 100-percent residential project or a mixed-use project where at least 50 percent of the square footage is dedicated to residential uses. SB 6 projects are not exempt from CEQA but need not provide any affordable housing. SB 6 projects are required to pay prevailing wages and utilize a "skilled and trained workforce." Although there HOUSING PLAN 226
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is a possibility that including commercial space in a mixed use development could be viewed as a constraint, the community and City Council are interested in mixed use, walkable environments that support a variety of uses.
Quantified Objective: Amend the City's Neighborhood Commercial and Community Commercial zones and land use code to create objective standards for mixed-uses and facilitate the redevelopment of commercial sites to mixed-use.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Program developed by June 30, 2025 Funding Source(s): Community Development Maintenance Fund PROGRAM H3.5: Parking standards update and study
Parking can be a significant portion of the cost of developing new housing. Research and develop new parking standards for residential developments that align with neighboring jurisdictions and are reflective of the community needs and development costs. Although the Dumbarton rail project is proposed for Newark, there is no firm timeline for its development. Due to limited frequent public transportation in the city, many residents are car dependent in order to access employment and other basic needs which reflects the extent of parking reductions.
Quantified Objective: Update the Zoning Ordinance to encourage infill development, including housing for persons with disabilities, senior housing, accessory dwelling units. Engage with the development community to discuss changes to parking minimums. Identify and implement parking requirement reductions in NMC 17.23.50, eliminating parking minimums for ADUs, and/or unbundled parking from the dwelling unit for large housing projects. Revised parking changes include:
● Senior Parking: Reduce from 1 space per unit to .5 spaces per unit ● Remove parking requirements for ADUs
● Two Unit Dwelling : Remove the guest parking requirement ● Multi Unit Dwelling:
○ Reduce covered parking requirement to 0.5 spaces per unit ○ Reduce guest parking to 0.25 spaces per unit
○ Reduce overall parking requirement for studios and one bedrooms to 1 space per unit.
○ Reduce 2-plus bedroom requirement to 1.5 spaces per unit with 0.25 spaces for guest parking.
Provide more opportunities for alternatives to individual automobile such as:
● CAR SHARING
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One stall reduction for each stall dedicated and designated for use by a locally-operating car sharing program, such as Zipcar. ● ON-STREET PARKING CREDIT
One-half stall reduction for each new public, on-street parking stall provided as part of a project (through the installation of angled or perpendicular spaces with bulb-outs and curbs or other methods).
● BICYCLE PARKING CREDIT
One stall reduction for every five, non-required bicycle parking spaces provided on the site (beyond the standard requirements.
Analyze and revise as necessary existing standards for SROs, small multifamily (Missing Middle), and shared parking.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Parking requirement updates in zoning code by mid 2025 Funding Source(s): Community Development Maintenance Fund PROGRAM H3.6: By-Right Approval of Projects with 20
Percent Affordable Units on “Reused” Sites.
Pursuant to AB 1397, amend the Zoning Ordinance to require by-right approval of housing development that includes 20 percent of the units as housing affordable to lower-income households, on sites being used to meet the 6th Cycle RHNA that represent “reuse sites” previously identified in the 4th and 5th Cycles Housing Element. The nine sites listed in Table 6-2 will be adjusted by text amendment to accommodate the lower income RHNA as needed.
Table 6-2: Assessors Parcels Numbers Subject to AB 139, 2022 Site Number Assessor Parcel Number
8 92-30-16-2; 92-30-15-2; 92-30-17-2; 92-30-14-3; 92-30-18-4 9 92-31-15; 92-31-16-2
15 92A-900-1-2
16 92-29-13; 92-29-19-2; 92-29-18-2; 92-29-17-2; 92-29-16-2;92-51-2-3; 92-29-20-2; 92-51-5-3
17 92A-2125-17
92A-2125-11-2’ 92A-2125-13
18 92A-2585-32
19 92-50-13
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Site Number Assessor Parcel Number
21 92-255-11
22 92A-2375-32
23 92-131-3; 92-131-2-4; 92-131-1-9
Quantified Objective: 602 total units, 304 very low and low income units, 67 moderate income units and 231 above moderate income units.
Responsible Agency: Newark City Council, Community Development Department, Planning Commission
Timeline: IMMEDIATE: Text amendment within one year of Housing Element Adoption
Funding Source(s): Community Development Maintenance Fund PROGRAM H4.1: Develop Anti-Displacement Programs for the Old-Town Newark Specific Plan Area.
Quantified Objective: Apply local preference ordinance to new residential development in the Old Town area. Convene an Old Town community working group composed of residents, youth and business owners in the neighborhood.
This group will work with staff to develop neighborhood priorities for an anti displacement program for the Old Town Newark Specific Plan area that supports community residents and small businesses to stay in place.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Local preference policy, 2024. MID-TERM: Anti displacement implementation program developed by June 30, 2026 Funding Source(s): Community Development Maintenance Fund PROGRAM H4.2: Develop a Tenant/Community Opportunity to Purchase Policy
Develop programs to support renters stay in their homes and create opportunities for home ownership through a Tenant Opportunity to Purchase or Community Opportunity to Purchase (COPA and TOPA). A TOPA/COPA policy can also facilitate homeownership for tenants by creating limited equity housing cooperatives or other ownership models, enabling increased HOUSING PLAN 229
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wealth-building opportunities for BIPOC communities who have historically been denied access to homeownership.
Work with community members, community-based, mission-driven entities, housing providers, real estate professionals, and other relevant stakeholders to review best practices and lessons learned to develop a report with recommendations for the implementation of a small sites program and COPA / TOPA policy in the City of Newark.
Quantified Objective: The recommendations will include a framework for an ordinance, administrative and supportive policies, program process and design, community engagement plan, and identification of costs and funding sources for implementation.
Responsible Agency: Community Development Department
Timeline: MID-TERM: COPA and TOPA ordinance and program developed by June 30, 2026
Funding Source(s): HOME funds
PROGRAM H4.3: Develop a Just Cause Eviction Ordinance
Just Cause ordinances prohibit landlords from ending a tenancy or evicting a tenant without a specific reason.
Quantified Objective: Develop and implement a just cause eviction ordinance for the city to cover tenants under state law when AB 1482 expires in 2029. Support 15 low income residents per year to stay in their homes.
Responsible Agency: Community Development Department, City Council Timeline: MID-TERM: Program developed by June 30, 2025
Funding Source(s): Housing Impact Fee Fund
PROGRAM H4.4: Small Sites Program
Develop a small sites funding funding program that enables nonprofit housing providers to acquire market-rate multifamily properties that are less than 25 units and convert these buildings to affordable housing.
Quantified Objective: Develop an RFP for small sites program. Recipients of funding from the Small Sites Program sign a 55-year regulatory agreement that governs the income limits for tenants and rents that can be charged. The program will HOUSING PLAN 230
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focus on the Old Town/ Central area, identified as vulnerable to displacement, and with higher concentrations of low income residents.
Responsible Agency: Community Development Department
Timeline: MID-TERM: Program developed by June 30, 2027
Funding Source(s): Community Development Maintenance Fund PROGRAM H4.5: Connect Residents to Existing Shared
Housing Programs
With community partners, connect residents to existing shared housing programs to support those in need of affordable housing and seniors in need of additional income to remain in their homes.
Quantified Objective: Work to connect 20 residents per year to existing shared housing resource programs through non profit partners for Newark such as the Home Match program.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Program implemented by June 30, 2025 Funding Source(s): Housing Impact Fee Fund
PROGRAM H4.6: Support Tenant Stability Though Minimum
Lease Terms and Relocation Assistance.
Quantified Objective: Develop an ordinance outlining minimum lease terms and relocation assistance for renters
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Program developed by June 30, 2024 Funding Source(s): Housing Impact Fee Fund
PROGRAM H4.7: Identify Housing Opportunities For Those
With Developmental Disabilities
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Work with community partners such as the Housing Consortium of the East Bay, to identify scattered smaller parcels that would be suitable for affordable housing, and the inclusion of units in larger housing developments for those with developmental disabilities.
Quantified Objective: 20 units to increase housing opportunities for those with developmental disabilities in Newark.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Coordination with housing developers and community partners by June 30, 2024
Funding Source(s): Housing Impact Fee Fund
PROGRAM H4.8: Connect Residents with Foreclosure
assistance.
Quantified Objective: Connect residents with existing foreclosure prevention resources for Alameda County to stem the displacement of 20 low and moderate income residents. With a focus on Hispanic/ Latinx, Indigenous and Black residents.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Program support by June 30, 2024
Funding Source(s): Housing Impact Fee Fund
PROGRAM H4.9: No Net Loss of Units
To facilitate place-based revitalization for households at risk of displacement due to new development, the City will require replacement housing units subject to the requirements of Government Code, Section 65915, subdivision (c)(3), when any new development (residential, mixed use, or nonresidential) occurs on a site that has been occupied by or restricted for the use of lower income households at any time during the previous five years. This requirement applies to non-vacant sites and vacant sites with previous residential uses that have been vacated or demolished.
Quantified Objective: Replace any of the units if (a) they are planned to be demolished for purposes of building new housing, and (b) they are determined to be occupied by low income residents.
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Responsible Agency: Community Development Department,
Timeline: IMMEDIATE: The replacement requirement will be implemented immediately and applied as applications on identified sites are received and processed.
Funding Source(s): Community Development Maintenance Fund PROGRAM H4.10: Zoning Ordinance Amendments for Special
Needs Housing
The City of Newark, through its Zoning Ordinance, provides opportunities for special needs housing, including uses such as Group Residential, Residential Care Facilities, Single Room Occupancies, Supportive Housing, and Transitional Housing, and Emergency Shelters. However, the locations where these uses are allowed are limited. Along with commitments in Program H2.10, the City shall prepare and adopt the following amendments to the Zoning Ordinance to allow housing for special needs groups consistent with State law:
● Allow “low barrier navigation center” developments by right in mixed-use zones and nonresidential zones permitting multifamily uses, consistent with Government Code Section 65662.
● Allow for the by-right approval of 100 percent affordable developments that include a percentage of supportive housing units, either 25 percent or 12 units, whichever is greater, to be allowed without a conditional use permit or other discretionary review in all zoning districts where multifamily and mixed-use development is permitted, consistent with Government Code Section 65651(a).
● Ensure the identified zone has available sites with capacity to accommodate at least 32 shelter beds, using the methodology outlined in Government Code section 65583 subdivision (a)(4), and that the identified zones have sites located near amenities and services that serve people experiencing homelessness, which may include health care, transportation, retail, employment, and social services. ● Allow large Residential Care Facilities for 7 or more people as a permitted use in the Residential Low Density, Residential Medium Density, and Residential High Density zones.
The facilities are subject to the same requirements as other residential uses of the same type in these zones.
● Expand the zones where single-room occupancy units (SROs) are a permitted use to RM, RH, and CMU districts.
● Allow employee and farmworker housing consistent with California Health and Safety Code Section 17021.5(b) Section 17021.6.
● Revise the definition of “emergency shelter” to include other interim interventions, including but not limited to, navigation centers, bridge housing, and respite or recuperative care, per Government Code 65583. The City will also confirm zones utilized for emergency shelters allow residential uses, confirm they have sufficient capacity and proximity to HOUSING PLAN 233
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services based on statutory formulas and review to ensure that the appropriate development standards are in place to encourage the development of emergency shelters. ● Revise the City’s definition of “Family” in the municipal code to remove provisions requiring shared living expenses or maintaining a single lease or rental agreement. ● Review and revise the City’s reasonable accommodation procedure to eliminate constraints for persons with disabilities, particularly the finding (a) that requires the request to be necessary “… due to the physical characteristics of the property and the proposed use or structure or other circumstances, including, but not limited to, topography, noise exposure, irregular property boundaries, or other unusual circumstance.”
Quantified Objective: Ensure compliance with State law
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Zoning amendments completed by October 26, 2024, including zoning related to emergency shelters within one year of adoption.
Funding Source(s): Community Development Maintenance Fund HOUSING PLAN 234
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PROGRAM H4.11: Scattered Site Housing for Persons
Experiencing Homelessness
As funds become available, the City shall partner with other Alameda County cities and organizations like Bay Area Community Services (BACS) and Abode Housing to apply for funds to support the acquisition and conversion of single-family homes and hotels/motels to supportive shared housing for people experiencing homelessness. If the project is awarded funds and a partner organization acquires a property in Newark, the City will record a 55-year regulatory agreement against the subject property restricting the rents for extremely low-income households and establishing property maintenance and management standards. Staff will work with partners and the other participating cities to refine the program goals and secure matching funding from Alameda County HOME Consortium.
Quantified Objective: Conversion of a Homekey-funded hotel containing 124 units for households experiencing homelessness and households at risk of homelessness was completed in 2023. Through a scattered-sites program, purchase 1-2 single-family properties in partnership with nonprofits utilizing available funds to provide extremely low-income housing units for persons experiencing homelessness, with a goal of identifying the majority of sites in high resource census tracts.
Responsible Agency: Community Development Department
Timeline: Homekey-funded hotel conversion will be complete in 2023.
Scattered-site program compete in 2025-2026, subject to the availability of federal, state and local funding e.
Funding Source(s): Federal, state, and local funding sources, including Lanterman Act funds or Project Homekey.
PROGRAM H5.1: First-Time Homebuyer Assistance
Bring home ownership within reach for Newark residents. Develop a BMR homeownership program, and down payment assistance programs, with a focus on first time home buyers and BIPOC residents with low home ownership rates. The City will participate in the Alameda County Housing & Community Development Department Mortgage Credit Certificate (MCC) and Down Payment Assistance (DPA) programs to provide down payment assistance to expand homeownership opportunities in Newark. Down payment assistance funds provided by the County may be used to leverage monies from other grants to provide additional assistance with the intent to make homeownership more attainable for families.
Quantified Objective: The city will target an average of four households for down payment HOUSING PLAN 235
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assistance each year, with a focus on recruitment of moderate income BIPOC households.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Program developed by June 30, 2024 as part of the Affordable Housing work plan
Funding Source(s): Housing Impact Fee Fund, potentially CDBG funds.
PROGRAM H5.2: Affordable Housing Development Programs
Resolution 10184 to ensure an adequate amount of affordable housing through three programs.
1. Percentage of Affordable Units to mitigate the effects of new development. The city utilizes a percentage of units for very low, low and moderate income units to be included in the development of new housing.
2. Density Bonus Law. The city will offer developers the opportunity to utilize the state density Density Bonus ( Section 17.19) for an increase in housing units affordable to very low, low and moderate income households or seniors. Concessions are also available under the density bonus law such as reduced parking standards and setbacks, and allowing tandem or uncovered parking.
3. Affordable Housing fee program. This ordinance is codified in Chapter 17.18 of the Municipal Code. The fee is based on square footage of the project: The fee is calculated per square foot for floor area above 1,000 square feet, excluding garages, carports or common areas.
Quantified Objective: 778 housing units over the period of the Housing Element. 326 very low, 326 low income units, 126 moderate units
Responsible Agency: Community Development Department, City Council Timeline: Ongoing from existing program
Funding Source(s): Housing Impact Fee Fund
PROGRAM H5.3: Public Lands for dedicated affordable
housing.
The city, in compliance with the Surplus Land Act will develop and implement programs and policies to further Increase the utilization of public land for affordable housing with particular emphasis in high resource and gentrifying areas to support housing mobility and anti displacement efforts.
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Quantified Objective: 1. Rezone PF (Public Facility) zoned land to allow affordable housing as a permitted use, by-right.
2. Rezone publicly owned land, from Single Family to Mid rise Residential for the development of 20 new housing units targeted for disabled, single parent and low and moderate income households.
3. Develop a public land framework / policy that enables a coordinated interagency approach to public land reuse.
4. Maintain long-term ownership of public sites to ensure permanent affordability and long-term financial benefits.
5. Work with the school district to reuse excess and underutilized school sites and meet the needs of the local education workforce for the creation of 50 new units of housing for low and moderate income households.
6. Consider interim uses of public sites that can provide amenities to the community (e.g., housing for those experiencing homelessness, art installations and non profit art spaces)
7. The City shall also continue to monitor the status of available land owned by other public agencies and actively work with developers that may wish to develop such properties for affordable housing.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Public land framework developed by June 30, 2025, rezonings to occur by December 31, 2025
Funding Source(s): Community Development Maintenance Fund PROGRAM H5.4: Affordable Housing Overlay Zone
Develop an affordable housing overlay zone to incentivize the construction of affordable housing for very low, low, and moderate income households in targeted areas.
Quantified Objective: Work to develop a series of incentives such as reduced parking requirements, and fast tracked permitting to bring increased production of affordable rental housing to the Four Corners area and other high opportunity areas of the city.
Responsible Agency: Community Development Department
Timeline: MID-TERM: Program developed by June 30, 2026
Funding Source(s): Housing Impact Fee Fund
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PROGRAM H6.1: In Response to Multi-Year Drought Conditions, Support a Community Reduction of Local Water Usage
Quantified Objective: Develop a city wide water wise garden challenge, partner with local non profit organizations and city departments to support the transformation yards and medians with drought tolerant plants. Update municipal code to incorporate language on drought resistant landscaping.
Responsible Agency: Public Works Department, Community Development Department Timeline: MID-TERM: Program developed by June 30, 2026
Funding Source(s): Community Development Maintenance Fund PROGRAM H6.2: Encourage Water Utilities to Participate in BayREN’s Water Upgrades $ave Program
In order to make water efficiency improvements available to residents at little-to-no up-front cost.
Provide information to residents on incentives for energy efficiency and electrification from organizations such as PG&E, BayREN, and others.
Quantified Objective: Provide information in citywide mailings twice a year and post on City of Newark website and social media outlets.
Responsible Agency: Community Development Department, Public Works Department Timeline: MID-TERM: Program developed by June 30, 2025
Funding Source(s): Community Development Maintenance Fund PROGRAM H6.3: Cool Roofs for Cool Homes
In response to increased urban heat events, work to ensure that homes are incorporating designs to support cooler interiors.
Quantified Objective: Amend the City’s building ordinance to exceed Title 24 standards by requiring cool roofs for all new or replacement roofs.
Responsible Agency: Community Development Department, Public Works Department Timeline: IMMEDIATE: Program developed by June 30, 2025 HOUSING PLAN 238
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Funding Source(s): Community Development Maintenance Fund PROGRAM H6.4: Flood Risk Disclosure for New Development As a significant portion of Newark falls within the 100 and 500 year flood plain, ensuring that development is built in response to climate change.
Quantified Objective: Require developments in the flooding and other high-risk inundation areas to disclose flood risks and identify appropriate flood mitigation actions for incorporation into project design.
Responsible Agency: Community Development Department, Public Works Department Timeline: MID-TERM: Program developed by June 30, 2025
Funding Source(s): Community Development Maintenance Fund PROGRAM H7.1: Training for Voucher Program and Landlord Responsibilities
Develop training programs in collaboration with Alameda County Housing Authority for property owners to understand the housing choice voucher program and landlord responsibilities.
Quantified Objective: Hold two workshops annually for rental property owners/managers Responsible Agency: Community Development Department
Timeline: MID-TERM: Program developed by June 30, 2025
Funding Source(s): Housing Impact Fee Fund
PROGRAM H7.2: Increase City Access, and Partner With
Community Organizations To Ensure That Community
Members Have Access To Tenant Rights Information and
Fair Housing In Multiple Languages.
Expand education and outreach on fair housing laws and source of income discrimination to landlords, property owners with accessory dwelling units, and property owners seeking building permits for rental properties.
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Quantified Objective: ● Cocreation of tenants rights information in collaboration with local community organizations made accessible in culturally relevant ways and in a variety of formats such as videos, flyers, social media and public workshops.
● The city is working to install and implement the community development information module on the city’s website. The city expects to have this operational by the end of 2023 or early 2024.
The City has launched a service called “TextMyGov” which is a streamlined way to interact with community members on various topics and services. Users can send questions or concerns via text on mobile devices. Responses are provided via a return text with links to additional information and city services. Users can also register to receive push notifications via text on various city topics such as general city affairs (in English and Spanish), City Council meetings, and community events.
Responsible Agency: Community Development Department
Timeline: IMMEDIATE: Program implemented by June 30, 2024 Funding Source(s): Housing Impact Fee Fund
PROGRAM H7.3: Work with Newark Unified School District to Distribute Housing Resources
Work with Newark Unified School District to distribute housing resources to families enrolled in the district per state law AB27 that directs schools, including charter schools to identify homeless children and youth, requires annual staff training, and mandatory website postings of resources.
Quantified Objective: Information on housing resources and general family support resources for district families distributed through multiple sources to increase accessibility and that families are connected with housing resources for those experiencing homelessness. Translated into relevant languages for families in Newark. An example would be information published on the website.
Responsible Agency: City of Newark Homeless Committee, Newark Unified School District Timeline: MID-TERM: Program developed by June 30, 2025
Funding Source(s): Housing Impact Fee Fund
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PROGRAM H7.4: Affirmatively Market Affordable Housing
Affirmatively market affordable housing rental and for sale units, through the online affordable housing listing portals such as the Alameda Housing Portal, Doorway and elsewhere, to underrepresented groups such as people with disabilities, extremely low income households and BIPOC households.
Quantified Objective: Information on housing resources and general family support resources for district families distributed through multiple sources to increase accessibility and that families are connected with housing resources for those experiencing homelessness. Translated into relevant languages for families in Newark. An example would be information published on the website.
Responsible Agency: Community Development Department, City of Newark Homeless Committee, Newark Unified School District
Timeline: MID-TERM: Program developed by June 30, 2025
Funding Source(s): Housing Impact Fee Fund
PROGRAM H7.5: Monitor housing programs through a
mid-cycle review
The city commits to continuing improvement, evaluation, and adjustment of programs during the housing element cycle to ensure quantified objectives are being met.
Quantified Objective: Review quantified objectives for housing construction, rehabilitation, and conservation
Responsible Agency: Community Development Department
Timeline: MID-TERM: Programs reviewed by end of 2026
Funding Source(s): Community Development Maintenance Fund PROGRAM H7.6: Monitor annual progress towards meeting the City’s RHNA goals
The city commits to continuing improvement, evaluation, and adjustment of programs during the HOUSING PLAN 241
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housing element cycle to ensure progress is being made toward the City’s RHNA goals.
Quantified Objective: Monitor housing sites, residential development and future development potential, and programs annually. Survey property owners of sites in the sites inventory to stay current on the project viability and development climate. Report findings through the Annual Progress Report. Make adjustments to programs as needed.
Responsible Agency: Community Development Department
Timeline: ANNUALLY: The city will evaluate planned, approved and pending projects for progress toward completion every other year and if necessary, take alternative actions (e.g., additional sites or rezoning) within one year.
Funding Source(s): Community Development Maintenance Fund HOUSING PLAN 242
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Quantified Objectives
One of the requirements of State law (California Government Code Section 65583[b]) is that the Housing Element contain quantified objectives for the maintenance, preservation, improvement, and development of housing. State law recognizes that the total housing needs identified by a community may exceed available resources and the community’s ability to satisfy this need. Under these circumstances, the quantified objectives need not be identical to the total housing needs.
The quantified objectives shown in Table 6-3 represent targets. They are estimates based on experience, anticipated funding levels, and housing market conditions. The quantified objectives are not designed to be minimum requirements. The quantified objectives are based largely upon implementation programs that have measurable outcomes. However, the Housing Element contains several policies and implementation programs that reduce barriers and create opportunities for affordable housing. These policies and programs are essential to meeting the City’s housing needs but are more qualitative and difficult to quantify.
Table 6-3: List of Quantified Objectives for the 2023 to 2031 Planning Period Action Very Low Low Moderate
Above
Moderate
Total
RHNA 464 268 318 824 1,874
New Construction
Pipeline Projects 274 66 26 891 1,257
Program H2.1 and H2.8 Missing Middle 200 200
Program H2.2 Accessory Dwelling Units 48 48 48 16 160
Rehabilitation
Program H1.1 Housing Rehabilitation and
Repair
14 34 34 34 102
Program H1.2 Rental Inspection and Repair 32 32 32 96
Conservation, Preservation, + Assistance
Program H4.3 Tenant Protections 50 40 30 120
Program H4.8 and H5.1 First Time Home
Buyer and Foreclosure
10 14 24
Program H4.7 Disability 10 10 20
Program H4.5 Shared Housing 80 80 160
Source: City of Newark, 2023
14 Community Development Block Grant Status Report. April 5, 2023. An average of 9 units per year in a 10 year period.
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APPENDIX A HOUSING NEEDS
APPENDIX A HOUSING NEEDS A-1
1 HOUSING NEEDS DATA REPORT:
NEWARK
ABAG/MTC Staff and Baird + Driskell Community Planning
2021-04-02
2 0.1 Table of content
0.1 Table of content.................................................................................................... 2
0.2 List of figures ....................................................................................................... 3
0.3 List of tables ........................................................................................................ 3 1 Introduction .............................................................................................................. 5 2 Summary of Key Facts .................................................................................................. 6 3 Looking to the Future: Regional Housing Needs .................................................................. 9
3.1 Regional Housing Needs Determination......................................................................... 9
3.2 Regional Housing Needs Allocation .............................................................................. 9 4 Population, Employment and Household Characteristics ..................................................... 11
4.1 Population ..........................................................................................................11
4.2 Age...................................................................................................................12
4.3 Race and Ethnicity ................................................................................................14
4.4 Employment Trends ...............................................................................................15
4.4.1 Balance of Jobs and Workers...............................................................................15
4.4.2 Sector Composition ..........................................................................................19
4.4.3 Unemployment ...............................................................................................20
4.5 Extremely Low-Income Households.............................................................................21
4.6 Tenure...............................................................................................................25
4.7 Displacement .......................................................................................................29 5 Housing Stock Characteristics ...................................................................................... 31
5.1 Housing Types, Year Built, Vacancy, and Permits............................................................31
5.2 Assisted Housing Developments At-Risk of Conversion......................................................34
5.3 Substandard Housing..............................................................................................35
5.4 Home and Rent Values............................................................................................36
5.5 Overpayment and Overcrowding ................................................................................39 6 Special Housing Needs................................................................................................ 48
6.1 Large Households ..................................................................................................48
6.2 Female-Headed Households......................................................................................49
6.3 Seniors...............................................................................................................51
6.4 People with Disabilities ..........................................................................................52
6.5 Homelessness.......................................................................................................54
6.6 Farmworkers .......................................................................................................59
6.7 Non-English Speakers .............................................................................................60 3 0.2 List of figures
Figure 1: Population Growth Trends .......................................................................................12 Figure 2: Population by Age, 2000-2019...................................................................................13 Figure 3: Senior and Youth Population by Race ..........................................................................14 Figure 4: Population by Race, 2000-2019 .................................................................................15 Figure 5: Jobs in a Jurisdiction .............................................................................................16 Figure 6: Workers by Earnings, by Jurisdiction as Place of Work and Place of Residence.........................17 Figure 7: Jobs-Worker Ratios, By Wage Group ...........................................................................18 Figure 8: Jobs-Household Ratio .............................................................................................19 Figure 9: Resident Employment by Industry ..............................................................................20 Figure 10: Unemployment Rate.............................................................................................21 Figure 11: Households by Household Income Level......................................................................23 Figure 12: Household Income Level by Tenure ...........................................................................24 Figure 13: Poverty Status by Race..........................................................................................25 Figure 14: Housing Tenure...................................................................................................26 Figure 15: Housing Tenure by Race of Householder .....................................................................27 Figure 16: Housing Tenure by Age..........................................................................................28 Figure 17: Housing Tenure by Housing Type ..............................................................................29 Figure 18: Households by Displacement Risk and Tenure...............................................................30 Figure 19: Housing Type Trends ............................................................................................31 Figure 20: Housing Units by Year Structure Built ........................................................................32 Figure 21: Vacant Units by Type............................................................................................33 Figure 22: Substandard Housing Issues.....................................................................................36 Figure 23: Home Values of Owner-Occupied Units.......................................................................37 Figure 24: Zillow Home Value Index (ZHVI)...............................................................................37 Figure 25: Contract Rents for Renter-Occupied Units...................................................................38 Figure 26: Median Contract Rent ...........................................................................................39 Figure 27: Cost Burden by Tenure ..........................................................................................40 Figure 28: Cost Burden by Income Level ..................................................................................41 Figure 29: Cost Burden by Race.............................................................................................42 Figure 30: Cost Burden by Household Size ................................................................................43 Figure 31: Cost-Burdened Senior Households by Income Level ........................................................44 Figure 32: Overcrowding by Tenure and Severity ........................................................................45 Figure 33: Overcrowding by Income Level and Severity ................................................................46 Figure 34: Overcrowding by Race...........................................................................................47 Figure 35: Household Size by Tenure ......................................................................................48 Figure 36: Housing Units by Number of Bedrooms .......................................................................49 Figure 37: Household Type ..................................................................................................50 Figure 38: Female-Headed Households by Poverty Status ..............................................................51 Figure 39: Senior Households by Income and Tenure....................................................................52 Figure 40: Disability by Type ................................................................................................53 Figure 41: Homelessness by Household Type and Shelter Status, Alameda County ................................55 Figure 42: Racial Group Share of General and Homeless Populations, Alameda County ..........................56 Figure 43: Latinx Share of General and Homeless Populations, Alameda County...................................57 Figure 44: Characteristics for the Population Experiencing Homelessness, Alameda County.....................58 Figure 45: Farm Operations and Farm Labor by County, Alameda County...........................................60 Figure 46: Population with Limited English Proficiency.................................................................61
0.3 List of tables
4 Table 1: Illustrative Regional Housing Needs Allocation from Draft Methodology ..................................10 Table 2: Population Growth Trends ........................................................................................11 Table 3: Housing Permitting.................................................................................................33 Table 4: Assisted Units at Risk of Conversion.............................................................................34 Table 5: Population with Developmental Disabilities by Age ..........................................................54 Table 6: Population with Developmental Disabilities by Residence...................................................54 Table 7: Students in Local Public Schools Experiencing Homelessness ...............................................59 Table 8: Migrant Worker Student Population .............................................................................59 5 1 INTRODUCTION
The Bay Area continues to see growth in both population and jobs, which means more housing of various types and sizes is needed to ensure that residents across all income levels, ages, and abilities have a place to call home. While the number of people drawn to the region over the past 30 years has steadily increased, housing production has stalled, contributing to the housing shortage that communities are experiencing today. In many cities, this has resulted in residents being priced out, increased traffic congestion caused by longer commutes, and fewer people across incomes being able to purchase homes or meet surging rents.
The 2023-2031 Housing Element Update provides a roadmap for how to meet our growth and housing challenges. Required by the state, the Housing Element identifies what the existing housing conditions and community needs are, reiterates goals, and creates a plan for more housing. The Housing Element is an integral part of the General Plan, which guides the policies of Newark. 6 2 SUMMARY OF KEY FACTS
• Population – Generally, the population of the Bay Area continues to grow because of natural growth and because the strong economy draws new residents to the region. The population of Newark increased by 15.3% from 2000 to 2020, which is above the growth rate of the Bay Area. • Age – In 2019, Newark’s youth population under the age of 18 was 10,015 and senior population 65 and older was 6,038. These age groups represent 21.2% and 12.8%, respectively, of Newark’s population.
• Race/Ethnicity – In 2020, 23.7% of Newark’s population was White while 3.9% was African American, 33.9% was Asian, and 34.8% was Latinx. People of color in Newark comprise a proportion above the overall proportion in the Bay Area as a whole.1 • Employment – Newark residents most commonly work in the Manufacturing, Wholesale & Transportation industry. From January 2010 to January 2021, the unemployment rate in Newark decreased by 3.7 percentage points. Since 2010, the number of jobs located in the jurisdiction increased by 4,650 (29.9%). Additionally, the jobs-household ratio in Newark has increased from 1.33 in 2002 to 1.49 jobs per household in 2018. • Number of Homes – The number of new homes built in the Bay Area has not kept pace with the demand, resulting in longer commutes, increasing prices, and exacerbating issues of displacement and homelessness. The number of homes in Newark increased, 11.2% from 2010 to 2020, which is above the growth rate for Alameda County and above the growth rate of the region’s housing stock during this time period.
• Home Prices – A diversity of homes at all income levels creates opportunities for all Newark residents to live and thrive in the community.
– Ownership The largest proportion of homes had a value in the range of $750k-$1M in 2019. Home prices increased by 133.9% from 2010 to 2020. – Rental Prices – The typical contract rent for an apartment in Newark was $2,110 in 2019. Rental prices increased by 61.1% from 2009 to 2019. To rent a typical apartment without cost burden, a household would need to make $84,720 per year.2 • Housing Type – It is important to have a variety of housing types to meet the needs of a community today and in the future. In 2020, 69.6% of homes in Newark were single family detached, 9.5% were single family attached, 4.4% were small multifamily (2-4 units), and 16.5% were medium or large multifamily (5+ units). Between 2010 and 2020, the number of singlefamily units increased more than multi-family units. Generally, in Newark, the share of the
1 The Census Bureau’s American Community Survey accounts for ethnic origin separate from racial identity. The numbers reported here use an accounting of both such that the racial categories are shown exclusive of Latinx status, to allow for an accounting of the Latinx population regardless of racial identity. The term Hispanic has historically been used to describe people from numerous Central American, South American, and Caribbean countries. In recent years, the term Latino or Latinx has become preferred. This report generally uses Latinx, but occasionally when discussing US Census data, we use Hispanic or Non-Hispanic, to clearly link to the data source. 2 Note that contract rents may differ significantly from, and often being lower than, current listing prices. 7 housing stock that is detached single family homes is above that of other jurisdictions in the region.
• Cost Burden – The U.S. Department of Housing and Urban Development considers housing to be affordable for a household if the household spends less than 30% of its income on housing costs.
A household is considered “cost-burdened” if it spends more than 30% of its monthly income on housing costs, while those who spend more than 50% of their income on housing costs are considered “severely cost-burdened.” In Newark, 19.2% of households spend 30%-50% of their income on housing, while 12.4% of households are severely cost burden and use the majority of their income for housing.
• Displacement/Gentrification – According to research from The University of California, Berkeley, 0.0% of households in Newark live in neighborhoods that are susceptible to or experiencing displacement, and 0.0% live in areas at risk of or undergoing gentrification. 31.8% of households in Newark live in neighborhoods where low-income households are likely excluded due to prohibitive housing costs. There are various ways to address displacement including ensuring new housing at all income levels is built. • Neighborhood – 9.7% of residents in Newark live in neighborhoods identified as “Highest Resource” or “High Resource” areas by State-commissioned research, while 11.0% of residents live in areas identified by this research as “Low Resource” or “High Segregation and Poverty” areas. These neighborhood designations are based on a range of indicators covering areas such as education, poverty, proximity to jobs and economic opportunities, low pollution levels, and other factors.3
• Special Housing Needs – Some population groups may have special housing needs that require specific program responses, and these groups may experience barriers to accessing stable housing due to their specific housing circumstances. In Newark, 7.6% of residents have a disability of any kind and may require accessible housing. Additionally, 18.7% of Newark households are larger households with five or more people, who likely need larger housing units with three bedrooms or more. 11.8% of households are female-headed families, which are often at greater risk of housing insecurity.
Note on Data
Many of the tables in this report are sourced from data from the Census Bureau’s American Community Survey or U.S. Department of Housing and Urban Development’s Comprehensive Housing
Affordability Strategy (CHAS) data, both of which are samples and as such, are subject to sampling variability. This means that data is an estimate, and that other estimates could be possible if another set of respondents had been reached. We use the five-year release to get a
3 For more information on the “opportunity area” categories developed by HCD and the California Tax Credit Allocation Committee, see this website: https://www.treasurer.ca.gov/ctcac/opportunity.asp. The degree to which different jurisdictions and neighborhoods have access to opportunity will likely need to be analyzed as part of new Housing Element requirements related to affirmatively furthering fair housing. ABAG/MTC will be providing jurisdictions with technical assistance on this topic this summer, following the release of additional guidance from HCD.
8 larger data pool to minimize this “margin of error” but particularly for the smaller cities, the data will be based on fewer responses, and the information should be interpreted accordingly.
Additionally, there may be instances where there is no data available for a jurisdiction for particular data point, or where a value is 0 and the automatically generated text cannot perform a calculation. In these cases, the automatically generated text is “NODATA.” Staff should reword these sentences before using them in the context of the Housing Element or other documents.
Note on Figures
Any figure that does not specify geography in the figure name represents data for Newark.
9 3 LOOKING TO THE FUTURE: REGIONAL HOUSING NEEDS
3.1 Regional Housing Needs Determination
The Plan Bay Area 20504 Final Blueprint forecasts that the nine-county Bay Area will add 1.4 million new households between 2015 and 2050. For the eight-year time frame covered by this Housing Element Update, the Department of Housing and Community Development (HCD) has identified the region’s housing need as 441,176 units. The total number of housing units assigned by HCD is separated into four income categories that cover housing types for all income levels, from very low-income households to market rate housing.5 This calculation, known as the Regional Housing Needs Determination (RHND), is based on population projections produced by the California Department of Finance as well as adjustments that incorporate the region’s existing housing need. The adjustments result from recent legislation requiring HCD to apply additional adjustment factors to the baseline growth projection from California Department of Finance, in order for the regions to get closer to healthy housing markets. To this end, adjustments focus on the region’s vacancy rate, level of overcrowding and the share of cost burdened households, and seek to bring the region more in line with comparable ones.6 These new laws governing the methodology for how HCD calculates the RHND resulted in a significantly higher number of housing units for which the Bay Area must plan compared to previous RHNA cycles.
3.2 Regional Housing Needs Allocation
A starting point for the Housing Element Update process for every California jurisdiction is the Regional Housing Needs Allocation or RHNA – the share of the RHND assigned to each jurisdiction by the Association of Bay Area Governments (ABAG). State Housing Element Law requires ABAG to develop a methodology that calculates the number of housing units assigned to each city and county and distributes each jurisdiction’s housing unit allocation among four affordability levels. For this RHNA cycle, the RHND increased by 135%, from 187,990 to 441,776. For more information on the RHNA process this cycle, see ABAG’s website: https://abag.ca.gov/our-work/housing/rhna-regional-housing-needsallocation Almost all jurisdictions in the Bay Area are likely to receive a larger RHNA this cycle compared to the last cycle, primarily due to changes in state law that led to a considerably higher RHND compared to previous cycles.
In January 2021, ABAG adopted a Draft RHNA Methodology, which is currently being reviewed by HCD.
For Newark, the proposed RHNA to be planned for this cycle is 1,874 units, a slated increase from the last cycle. Please note that the previously stated figures are merely illustrative, as ABAG has yet to issue Final RHNA allocations. The Final RHNA allocations that local jurisdictions will use for their
4 Plan Bay Area 2050 is a long-range plan charting the course for the future of the nine-county San Francisco Bay Area. It covers four key issues: the economy, the environment, housing and transportation 5 HCD divides the RHND into the following four income categories:
Very Low-income: 0-50% of Area Median Income
Low-income: 50-80% of Area Median Income
Moderate-income: 80-120% of Area Median Income
Above Moderate-income: 120% or more of Area Median Income 6 For more information on HCD’s RHND calculation for the Bay Area, see this letter sent to ABAG from HCD on June 9, 2020: https://www.hcd.ca.gov/community-development/housing-element/docs/abagrhna-final060920(r).pdf 10 Housing Elements will be released at the end of 2021. The potential allocation that Newark would receive from the Draft RHNA Methodology is broken down by income category as follows:
Table 1: Illustrative Regional Housing Needs Allocation from Draft Methodology Income Group Newark
Units
Alameda
County Units
Bay Area
Units
Newark
Percent
Alameda
County
Percent
Bay Area
Percent
Very Low Income
(<50% of AMI) 464 23606 114442 24.8% 26.5% 25.9%
Low Income (50%-
80% of AMI) 268 13591 65892 14.3% 15.3% 14.9%
Moderate Income
(80%-120% of AMI) 318 14438 72712 17.0% 16.2% 16.5%
Above Moderate
Income (>120% of
AMI)
824 37362 188130 44.0% 42.0% 42.6%
Total 1874 88997 441176 100.0% 100.0% 100.0%
Source: Association of Bay Area Governments Methodology and tentative numbers were approved by ABAG’s Executive board on January 21, 2021 (Resolution No. 02-2021). The numbers were submitted for review to California Housing and Community Development in February 2021, after which an appeals process will take place during the Summer and Fall of 2021.
THESE NUMBERS SHOULD BE CONSIDERED PRELIMINARY AND SUBJECT TO CHANGE PER HCD REVIEW 11 4 POPULATION, EMPLOYMENT AND HOUSEHOLD
CHARACTERISTICS
4.1 Population
The Bay Area is the fifth-largest metropolitan area in the nation and has seen a steady increase in population since 1990, except for a dip during the Great Recession. Many cities in the region have experienced significant growth in jobs and population. While these trends have led to a corresponding increase in demand for housing across the region, the regional production of housing has largely not kept pace with job and population growth. Since 2000, Newark’s population has increased by 15.3%; this rate is above that of the region as a whole, at 14.8%. In Newark, roughly 9.5% of its population moved during the past year, a number 3.9 percentage points smaller than the regional rate of 13.4%.
Table 2: Population Growth Trends
Geography 1990 1995 2000 2005 2010 2015 2020
Newark 37861 39681 42471 43522 42573 44371 48966
Alameda County 1276702 1344157 1443939 1498963 1510271 1613528 1670834 Bay Area 6020147 6381961 6784348 7073912 7150739 7595694 7790537 Universe: Total population
Source: California Department of Finance, E-5 series
For more years of data, please refer to the Data Packet Workbook, Table POPEMP-01.
In 2020, the population of Newark was estimated to be 48,966 (see Table 2). From 1990 to 2000, the population increased by 12.2%, while it increased by 0.2% during the first decade of the 2000s. In the most recent decade, the population increased by 15.0%. The population of Newark makes up 2.9% of Alameda County.7
7 To compare the rate of growth across various geographic scales, Figure 1 shows population for the jurisdiction, county, and region indexed to the population in the year 1990. This means that the data points represent the population growth (i.e. percent change) in each of these geographies relative to their populations in 1990. 12 Figure 1: Population Growth Trends
Source: California Department of Finance, E-5 series Note: The data shown on the graph represents population for the jurisdiction, county, and region indexed to the population in the first year shown. The data points represent the relative population growth in each of these geographies relative to their populations in that year.
For some jurisdictions, a break may appear at the end of each decade (1999, 2009) as estimates are compared to census counts.
DOF uses the decennial census to benchmark subsequent population estimates.
For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-01.
4.2 Age
The distribution of age groups in a city shapes what types of housing the community may need in the near future. An increase in the older population may mean there is a developing need for more senior housing options, while higher numbers of children and young families can point to the need for more family housing options and related services. There has also been a move by many to age-in-place or downsize to stay within their communities, which can mean more multifamily and accessible units are also needed.
In Newark, the median age in 2000 was 32.2; by 2019, this figure had increased, landing at around 37 years. More specifically, the population of those under 14 has decreased since 2010, while the 65-andover population has increased (see Figure 2). 13 Figure 2: Population by Age, 2000-2019
Universe: Total population
Source: U.S. Census Bureau, Census 2000 SF1, Table P12; U.S. Census Bureau, Census 2010 SF1, Table P12; U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001 For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-04.
Looking at the senior and youth population by race can add an additional layer of understanding, as families and seniors of color are even more likely to experience challenges finding affordable housing.
People of color8 make up 51.4% of seniors and 73.8% of youth under 18 (see Figure 3).
8 Here, we count all non-white racial groups
14 Figure 3: Senior and Youth Population by Race
Universe: Total population
Notes: In the sources for this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity, and an overlapping category of Hispanic / non-Hispanic groups has not been shown to avoid double counting in the stacked bar chart.
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-G) For the data table behind this figure, please refer to the Data Packet Workbook, Table SEN-02.
4.3 Race and Ethnicity
Understanding the racial makeup of a city and region is important for designing and implementing effective housing policies and programs. These patterns are shaped by both market factors and government actions, such as exclusionary zoning, discriminatory lending practices and displacement that has occurred over time and continues to impact communities of color today9. Since 2000, the percentage of residents in Newark identifying as White has decreased – and by the same token the percentage of residents of all other races and ethnicities has increased – by 18.6 percentage points, with the 2019 population standing at 11,168 (see Figure 4). In absolute terms, the Asian / API, NonHispanic population increased the most while the White, Non-Hispanic population decreased the most.
9 See, for example, Rothstein, R. (2017). The color of law : a forgotten history of how our government segregated America. New York, NY & London, UK: Liveright Publishing. 15 Figure 4: Population by Race, 2000-2019
Universe: Total population
Notes: Data for 2019 represents 2015-2019 ACS estimates. The Census Bureau defines Hispanic/Latinx ethnicity separate from racial categories. For the purposes of this graph, the “Hispanic or Latinx” racial/ethnic group represents those who identify as having Hispanic/Latinx ethnicity and may also be members of any racial group. All other racial categories on this graph represent those who identify with that racial category and do not identify with Hispanic/Latinx ethnicity.
Source: U.S. Census Bureau, Census 2000, Table P004; U.S. Census Bureau, American Community Survey 5-Year Data (2015- 2019), Table B03002
For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-02.
4.4 Employment Trends
4.4.1 Balance of Jobs and Workers
A city houses employed residents who either work in the community where they live or work elsewhere in the region. Conversely, a city may have job sites that employ residents from the same city, but more often employ workers commuting from outside of it. Smaller cities typically will have more employed residents than jobs there and export workers, while larger cities tend to have a surplus of jobs and import workers. To some extent the regional transportation system is set up for this flow of workers to the region’s core job centers. At the same time, as the housing affordability crisis has illustrated, local imbalances may be severe, where local jobs and worker populations are out of sync at a sub-regional scale.
One measure of this is the relationship between workers and jobs. A city with a surplus of workers “exports” workers to other parts of the region, while a city with a surplus of jobs must conversely “import” them. Between 2002 and 2018, the number of jobs in Newark increased by 15.3% (see Figure 5).
16 Figure 5: Jobs in a Jurisdiction
Universe: Jobs from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment Notes: The data is tabulated by place of work, regardless of where a worker lives. The source data is provided at the census block level. These are crosswalked to jurisdictions and summarized.
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files, 2002-2018 For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-11.
There are 17,935 employed residents, and 17,168 jobs10 in Newark - the ratio of jobs to resident workers is 0.96; Newark is a net exporter of workers.
Figure 6 shows the balance when comparing jobs to workers, broken down by different wage groups, offering additional insight into local dynamics. A community may offer employment for relatively lowincome workers but have relatively few housing options for those workers - or conversely, it may house residents who are low wage workers but offer few employment opportunities for them. Such relationships may cast extra light on potentially pent-up demand for housing in particular price categories. A relative surplus of jobs relative to residents in a given wage category suggests the need to import those workers, while conversely, surpluses of workers in a wage group relative to jobs means the community will export those workers to other jurisdictions. Such flows are not inherently bad, though over time, sub-regional imbalances may appear. Newark has more low-wage jobs than low-wage residents (where low-wage refers to jobs paying less than $25,000). At the other end of the wage
10 Employed residents in a jurisdiction is counted by place of residence (they may work elsewhere) while jobs in a jurisdiction are counted by place of work (they may live elsewhere). The jobs may differ from those reported in Figure 5 as the source for the time series is from administrative data, while the cross-sectional data is from a survey.
17 spectrum, the city has more high-wage residents than high-wage jobs (where high-wage refers to jobs paying more than $75,000) (see Figure 6).
11 Figure 6: Workers by Earnings, by Jurisdiction as Place of Work and Place of Residence
Universe: Workers 16 years and over with earnings
Source: U.S. Census Bureau, American Community Survey 5-Year Data 2015-2019, B08119, B08519 For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-10.
Figure 7 shows the balance of a jurisdiction’s resident workers to the jobs located there for different wage groups as a ratio instead - a value of 1 means that a city has the same number of jobs in a wage group as it has resident workers - in principle, a balance. Values above 1 indicate a jurisdiction will need to import workers for jobs in a given wage group. At the regional scale, this ratio is 1.04 jobs for each worker, implying a modest import of workers from outside the region (see Figure 7).
11 The source table is top-coded at $75,000, precluding more fine grained analysis at the higher end of the wage spectrum.
18 Figure 7: Jobs-Worker Ratios, By Wage Group
Universe: Jobs in a jurisdiction from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment Notes: The ratio compares job counts by wage group from two tabulations of LEHD data: Counts by place of work relative to counts by place of residence. See text for details.
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs); Residence Area Characteristics (RAC) files (Employed Residents), 2010-2018 For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-14.
Such balances between jobs and workers may directly influence the housing demand in a community.
New jobs may draw new residents, and when there is high demand for housing relative to supply, many workers may be unable to afford to live where they work, particularly where job growth has been in relatively lower wage jobs. This dynamic not only means many workers will need to prepare for long commutes and time spent on the road, but in the aggregate it contributes to traffic congestion and time lost for all road users.
If there are more jobs than employed residents, it means a city is relatively jobs-rich, typically also with a high jobs to household ratio. Thus bringing housing into the measure, the jobs-household ratio in Newark has increased from 1.33 in 2002, to 1.49 jobs per household in 2018 (see Figure 8). 19 Figure 8: Jobs-Household Ratio
Universe: Jobs in a jurisdiction from unemployment insurance-covered employment (private, state and local government) plus United States Office of Personnel Management-sourced Federal employment; households in a jurisdiction Notes: The data is tabulated by place of work, regardless of where a worker lives. The source data is provided at the census block level. These are crosswalked to jurisdictions and summarized. The ratio compares place of work wage and salary jobs with households, or occupied housing units. A similar measure is the ratio of jobs to housing units. However, this jobs-household ratio serves to compare the number of jobs in a jurisdiction to the number of housing units that are actually occupied. The difference between a jurisdiction’s jobs-housing ratio and jobs-household ratio will be most pronounced in jurisdictions with high vacancy rates, a high rate of units used for seasonal use, or a high rate of units used as short-term rentals.
Source: U.S. Census Bureau, Longitudinal Employer-Household Dynamics, Workplace Area Characteristics (WAC) files (Jobs), 2002-2018; California Department of Finance, E-5 (Households) For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-13.
4.4.2 Sector Composition
In terms of sectoral composition, the largest industry in which Newark residents work is Manufacturing, Wholesale & Transportation, and the largest sector in which Alameda residents work is Health & Educational Services (see Figure 9). For the Bay Area as a whole, the Health & Educational Services industry employs the most workers.
20 Figure 9: Resident Employment by Industry
Universe: Civilian employed population age 16 years and over Notes: The data displayed shows the industries in which jurisdiction residents work, regardless of the location where those residents are employed (whether within the jurisdiction or not). Categories are derived from the following source tables:
Agriculture & Natural Resources: C24030_003E, C24030_030E; Construction: C24030_006E, C24030_033E; Manufacturing, Wholesale & Transportation: C24030_007E, C24030_034E, C24030_008E, C24030_035E, C24030_010E, C24030_037E; Retail:
C24030_009E, C24030_036E; Information: C24030_013E, C24030_040E; Financial & Professional Services: C24030_014E, C24030_041E, C24030_017E, C24030_044E; Health & Educational Services: C24030_021E, C24030_024E, C24030_048E, C24030_051E; Other: C24030_027E, C24030_054E, C24030_028E, C24030_055E Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table C24030 For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-06.
4.4.3 Unemployment
In Newark, there was a 3.7 percentage point decrease in the unemployment rate between January 2010 and January 2021. Jurisdictions through the region experienced a sharp rise in unemployment in 2020 due to impacts related to the COVID-19 pandemic, though with a general improvement and recovery in the later months of 2020.
21 Figure 10: Unemployment Rate
Universe: Civilian noninstitutional population ages 16 and older Notes: Unemployment rates for the jurisdiction level is derived from larger-geography estimates. This method assumes that the rates of change in employment and unemployment are exactly the same in each sub-county area as at the county level. If this assumption is not true for a specific sub-county area, then the estimates for that area may not be representative of the current economic conditions. Since this assumption is untested, caution should be employed when using these data. Only not seasonallyadjusted labor force (unemployment rates) data are developed for cities and CDPs.
Source: California Employment Development Department, Local Area Unemployment Statistics (LAUS), Sub-county areas monthly updates, 2010-2021.
For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-15.
4.5 Extremely Low-Income Households
Despite the economic and job growth experienced throughout the region since 1990, the income gap has continued to widen. California is one of the most economically unequal states in the nation, and the Bay Area has the highest income inequality between high- and low-income households in the state12.
In Newark, 57.5% of households make more than 100% of the Area Median Income (AMI)13, compared to
10.3% making less than 30% of AMI, which is considered extremely low-income (see Figure 11).
12 Bohn, S.et al. 2020. Income Inequality and Economic Opportunity in California. Public Policy Institute of California.
13 Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. Households making between 80 and 120 percent of the AMI are moderate-income, those making 50 to 80 percent are low-income, those making 30 to 50 22 Regionally, more than half of all households make more than 100% AMI, while 15% make less than 30% AMI. In Alameda County, 30% AMI is the equivalent to the annual income of $34,850 for a family of four.
Many households with multiple wage earners – including food service workers, full-time students, teachers, farmworkers and healthcare professionals – can fall into lower AMI categories due to relatively stagnant wages in many industries.
Note on Estimating the Projected Number of Extremely Low-Income Households Local jurisdictions are required to provide an estimate for their projected extremely low-income households in their Housing Elements. HCD’s official Housing Element guidance notes that jurisdictions can use their RHNA for very low-income households (those making 0-50% AMI) to calculate their projected extremely low-income households. For more information, visit HCD’s Building Blocks page on Extremely Low-Income Housing Needs.
This document does not contain the required data point of projected extremely low-income households, as Bay Area jurisdictions have not yet received their final RHNA numbers. Once Newark receives its 6th Cycle RHNA, staff can estimate the projected extremely low-income households using one of the following three methodologies:
Option A: Assume that 59.8% of Newark’s very low-income RHNA is for extremely low-income households.
According to HCD’s Regional Housing Need Determination for the Bay Area, 15.5% of the region’s housing need is for 0-30% AMI households while 25.9% is for 0-50% AMI households. Therefore, extremely low-income housing need represents 59.8% of the region’s very low-income housing need, as 15.5 divided by 25.9 is 59.8%. This option aligns with HCD’s guidance to use U.S. Census data to calculate the percentage of very low-income RHNA that qualifies for extremely low-income households, as HCD uses U.S. Census data to calculate the Regional Housing Need Determination.
Option B: Assume that 55.2% of Newark’s very low-income RHNA is for extremely low-income households.
According to the data shown below (Figure 11), 2,508 of Newark’s households are 0-50% AMI while 1,384 are extremely low-income. Therefore, extremely low-income households represent 55.2% of households who are 0-50% AMI, as 1,384 divided by 2,508 is 55.2%. This option aligns with HCD’s guidance to use U.S. Census data to calculate the percentage of very low-income RHNA that qualifies for extremely low-income households, as the information in Figure 11 represents a tabulation of Census Bureau Data.
Option C: Assume that 50% of Newark’s very low-income RHNA is for extremely low-income households.
HCD’s guidance notes that instead of using use U.S. Census data to calculate the percentage of very low-income RHNA that qualifies for extremely low-income households, local jurisdictions can presume that 50% of their RHNA for very low-income households qualifies for extremely low-income households.
percent are very low-income, and those making less than 30 percent are extremely low-income. This is then adjusted for household size.
23 Figure 11: Households by Household Income Level
Universe: Occupied housing units
Notes: Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located. The data that is reported for the Bay Area is not based on a regional AMI but instead refers to the regional total of households in an income group relative to the AMI for the county where that household is located. Local jurisdictions are required to provide an estimate for their projected extremely low-income households (0-30% AMI) in their Housing Elements. HCD’s official Housing Element guidance notes that jurisdictions can use their RHNA for very low-income households (those making 0-50% AMI) to calculate their projected extremely low-income households. As Bay Area jurisdictions have not yet received their final RHNA numbers, this document does not contain the required data point of projected extremely low-income households. The report portion of the housing data needs packet contains more specific guidance for how local staff can calculate an estimate for projected extremely low-income households once jurisdictions receive their 6th cycle RHNA numbers.
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release
For the data table behind this figure, please refer to the Data Packet Workbook, Table ELI-01.
Throughout the region, there are disparities between the incomes of homeowners and renters.
Typically, the number of low-income renters greatly outpaces the amount of housing available that is affordable for these households.
In Newark, the largest proportion of renters falls in the Greater than 100% of AMI income group, while the largest proportion of homeowners are found in the Greater than 100% of AMI group (see Figure 12). 24 Figure 12: Household Income Level by Tenure
Universe: Occupied housing units
Notes: Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release
For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-21.
Currently, people of color are more likely to experience poverty and financial instability as a result of federal and local housing policies that have historically excluded them from the same opportunities extended to white residents.14 These economic disparities also leave communities of color at higher risk for housing insecurity, displacement or homelessness. In Newark, Black or African American (Hispanic and Non-Hispanic) residents experience the highest rates of poverty, followed by American Indian or Alaska Native (Hispanic and Non-Hispanic) residents (see Figure 13).
14 Moore, E., Montojo, N. and Mauri, N., 2019. Roots, Race & Place: A History of Racially Exclusionary Housing the San Francisco Bay Area. Hass Institute.
25 Figure 13: Poverty Status by Race
Universe: Population for whom poverty status is determined Notes: The Census Bureau uses a federally defined poverty threshold that remains constant throughout the country and does not correspond to Area Median Income. For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the population for whom poverty status is determined for this jurisdiction. However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the population for whom poverty status is determined.
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17001(A-I) For the data table behind this figure, please refer to the Data Packet Workbook, Table ELI-03.
4.6 Tenure
The number of residents who own their homes compared to those who rent their homes can help identify the level of housing insecurity – ability for individuals to stay in their homes – in a city and region. Generally, renters may be displaced more quickly if prices increase. In Newark there are a total of 14,047 housing units, and fewer residents rent than own their homes: 31.2% versus 68.8% (see Figure 14). By comparison, 46.5% of households in Alameda County are renters, while 44% of Bay Area households rent their homes.
26 Figure 14: Housing Tenure
Universe: Occupied housing units
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003 For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-16.
Homeownership rates often vary considerably across race/ethnicity in the Bay Area and throughout the country. These disparities not only reflect differences in income and wealth but also stem from federal, state, and local policies that limited access to homeownership for communities of color while facilitating homebuying for white residents. While many of these policies, such as redlining, have been formally disbanded, the impacts of race-based policy are still evident across Bay Area communities.15 In Newark, 54.1% of Black households owned their homes, while homeownership rates were 74.5% for Asian households, 54.1% for Latinx households, and 77.1% for White households. Notably, recent changes to state law require local jurisdictions to examine these dynamics and other fair housing issues when updating their Housing Elements.
15 See, for example, Rothstein, R. (2017). The color of law : a forgotten history of how our government segregated America. New York, NY & London, UK: Liveright Publishing. 27 Figure 15: Housing Tenure by Race of Householder
Universe: Occupied housing units
Notes: For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and non-Hispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the total number of occupied housing units for this jurisdiction. However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the total number of occupied housing units.
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25003(A-I) For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-20.
The age of residents who rent or own their home can also signal the housing challenges a community is experiencing. Younger households tend to rent and may struggle to buy a first home in the Bay Area due to high housing costs. At the same time, senior homeowners seeking to downsize may have limited options in an expensive housing market.
In Newark, 43.6% of householders between the ages of 25 and 44 are renters, while 13.5% of householders over 65 are (see Figure 16).
28 Figure 16: Housing Tenure by Age
Universe: Occupied housing units
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25007 For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-18.
In many cities, homeownership rates for households in single-family homes are substantially higher than the rates for households in multi-family housing. In Newark, 82.3% of households in detached single-family homes are homeowners, while 22.7% of households in multi-family housing are homeowners (see Figure 17).
29 Figure 17: Housing Tenure by Housing Type
Universe: Occupied housing units
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25032 For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-22.
4.7 Displacement
Because of increasing housing prices, displacement is a major concern in the Bay Area. Displacement has the most severe impacts on low- and moderate-income residents. When individuals or families are forced to leave their homes and communities, they also lose their support network.
The University of California, Berkeley has mapped all neighborhoods in the Bay area, identifying their risk for gentrification. They find that in Newark, 0.0% of households live in neighborhoods that are susceptible to or experiencing displacement and 0.0% live in neighborhoods at risk of or undergoing gentrification.
Equally important, some neighborhoods in the Bay Area do not have housing appropriate for a broad section of the workforce. UC Berkeley estimates that 31.8% of households in Newark live in neighborhoods where low-income households are likely to be excluded due to prohibitive housing costs.16
16 More information about this gentrification and displacement data is available at the Urban Displacement Project’s webpage: https://www.urbandisplacement.org/. Specifically, one can learn more about the different gentrification/displacement typologies shown in Figure 18 at this link:
https://www.urbandisplacement.org/sites/default/files/typology_sheet_2018_0.png. Additionally, one can view maps that show which typologies correspond to which parts of a jurisdiction here:
https://www.urbandisplacement.org/san-francisco/sf-bay-area-gentrification-and-displacement 30 Figure 18: Households by Displacement Risk and Tenure Universe: Households
Notes: Displacement data is available at the census tract level. Staff aggregated tracts up to jurisdiction level using census 2010 population weights, assigning a tract to jurisdiction in proportion to block level population weights. Total household count may differ slightly from counts in other tables sourced from jurisdiction level sources. Categories are combined as follows for simplicity: At risk of or Experiencing Exclusion: At Risk of Becoming Exclusive; Becoming Exclusive; Stable/Advanced Exclusive At risk of or Experiencing Gentrification: At Risk of Gentrification; Early/Ongoing Gentrification; Advanced Gentrification Stable Moderate/Mixed Income: Stable Moderate/Mixed Income Susceptible to or Experiencing Displacement: LowIncome/Susceptible to Displacement; Ongoing Displacement Other: High Student Population; Unavailable or Unreliable Data Source: Urban Displacement Project for classification, American Community Survey 5-Year Data (2015-2019), Table B25003 for tenure.
For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-25. 31 5 HOUSING STOCK CHARACTERISTICS
5.1 Housing Types, Year Built, Vacancy, and Permits
In recent years, most housing produced in the region and across the state consisted of single-family homes and larger multi-unit buildings. However, some households are increasingly interested in “missing middle housing” – including duplexes, triplexes, townhomes, cottage clusters and accessory dwelling units (ADUs). These housing types may open up more options across incomes and tenure, from young households seeking homeownership options to seniors looking to downsize and age-in-place.
The housing stock of Newark in 2020 was made up of 69.6% single family detached homes, 9.5% single family attached homes, 4.4% multifamily homes with 2 to 4 units, 16.5% multifamily homes with 5 or more units, and 0.0% mobile homes (see Figure 19). In Newark, the housing type that experienced the most growth between 2010 and 2020 was Single-Family Home: Detached.
Figure 19: Housing Type Trends
Universe: Housing units
Source: California Department of Finance, E-5 series
For the data table behind this figure, please refer to the Data Packet Workbook, Table HSG-01.
Production has not kept up with housing demand for several decades in the Bay Area, as the total number of units built and available has not yet come close to meeting the population and job growth experienced throughout the region. In Newark, the largest proportion of the housing stock was built 1960 to 1979, with 7,737 units constructed during this period (see Figure 20). Since 2010, 4.9% of the current housing stock was built, which is 713 units.
32 Figure 20: Housing Units by Year Structure Built
Universe: Housing units
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25034 For the data table behind this figure, please refer to the Data Packet Workbook, Table HSG-04.
Vacant units make up 3.5% of the overall housing stock in Newark. The rental vacancy stands at 2.6%, while the ownership vacancy rate is 1.7%. Of the vacant units, the most common type of vacancy is For Seasonal, Recreational, Or Occasional Use (see Figure 21).17 Throughout the Bay Area, vacancies make up 2.6% of the total housing units, with homes listed for rent; units used for recreational or occasional use, and units not otherwise classified (other vacant) making up the majority of vacancies. The Census Bureau classifies a unit as vacant if no one is occupying it when census interviewers are conducting the American Community Survey or Decennial Census. Vacant units classified as “for recreational or occasional use” are those that are held for shortterm periods of use throughout the year. Accordingly, vacation rentals and short-term rentals like AirBnB are likely to fall in this category. The Census Bureau classifies units as “other vacant” if they are vacant due to foreclosure, personal/family reasons, legal proceedings, repairs/renovations, abandonment, preparation for being rented or sold, or vacant for an extended absence for reasons such as a work assignment, military duty, or incarceration.18 In a region with a thriving economy and housing market like the Bay Area, units being renovated/repaired and prepared for rental or sale are likely to represent a large portion of the “other vacant” category. Additionally, the need for seismic retrofitting
17 The vacancy rates by tenure is for a smaller universe than the total vacancy rate first reported, which in principle includes the full stock (3.5%). The vacancy by tenure counts are rates relative to the rental stock (occupied and vacant) and ownership stock (occupied and vacant) - but exclude a a significant number of vacancy categories, including the numerically significant other vacant. 18 For more information, see pages 3 through 6 of this list of definitions prepared by the Census Bureau:
https://www.census.gov/housing/hvs/definitions.pdf.
33 in older housing stock could also influence the proportion of “other vacant” units in some jurisdictions.19
Figure 21: Vacant Units by Type
Universe: Vacant housing units
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25004 For the data table behind this figure, please refer to the Data Packet Workbook, Table HSG-03.
Between 2015 and 2019, 829 housing units were issued permits in Newark. 95.7% of permits issued in Newark were for above moderate-income housing, 4.3% were for moderate-income housing, and 0.0% were for low- or very low-income housing (see Table 3).
Table 3: Housing Permitting
Income Group value
Above Moderate Income Permits 793
Moderate Income Permits 36
Low Income Permits 0
Very Low Income Permits 0
Universe: Housing permits issued between 2015 and 2019
Notes: HCD uses the following definitions for the four income categories: Very Low Income: units affordable to households making less than 50% of the Area Median Income for the county in which the jurisdiction is located. Low Income: units affordable to households making between 50% and 80% of the Area Median Income for the county in which the jurisdiction is located. Moderate Income: units affordable to households making between 80% and 120% of the Area Median Income for the
19 See Dow, P. (2018). Unpacking the Growth in San Francisco’s Vacant Housing Stock: Client Report for the San Francisco Planning Department. University of California, Berkeley. 34 county in which the jurisdiction is located. Above Moderate Income: units affordable to households making above 120% of the Area Median Income for the county in which the jurisdiction is located.
Source: California Department of Housing and Community Development (HCD), 5th Cycle Annual Progress Report Permit Summary (2020)
This table is included in the Data Packet Workbook as Table HSG-11.
5.2 Assisted Housing Developments At-Risk of Conversion While there is an immense need to produce new affordable housing units, ensuring that the existing affordable housing stock remains affordable is equally important. Additionally, it is typically faster and less expensive to preserve currently affordable units that are at risk of converting to market-rate than it is to build new affordable housing.
The data in the table below comes from the California Housing Partnership’s Preservation Database, the state’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status and converting to market-rate housing. However, this database does not include all deed-restricted affordable units in the state, so there may be at-risk assisted units in a jurisdiction that are not captured in this data table. There are 274 assisted units in Newark in the Preservation Database. Of these units, 0.0% are at High Risk or Very High Risk of conversion.20 Note on At-Risk Assisted Housing Developments
HCD requires that Housing Elements list the assisted housing developments at risk of converting to market-rate uses. For more information on the specific properties that are at Moderate Risk, High Risk, or Very High Risk of conversion, local jurisdiction staff should contact Danielle Mazzella, Preservation & Data Manager at the California Housing Partnership, at [email protected].
Table 4: Assisted Units at Risk of Conversion
Income Newark Alameda County Bay Area
Low 274 23040 110177
Moderate 0 167 3375
High 0 189 1854
Very High 0 106 1053
Total Assisted Units in Database 274 23502 116459
Universe: HUD, Low-Income Housing Tax Credit (LIHTC), USDA, and CalHFA projects. Subsidized or assisted developments that do not have one of the aforementioned financing sources may not be included.
20 California Housing Partnership uses the following categories for assisted housing developments in its database:
Very-High Risk: affordable homes that are at-risk of converting to market rate within the next year that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer.
High Risk: affordable homes that are at-risk of converting to market rate in the next 1-5 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer.
Moderate Risk: affordable homes that are at-risk of converting to market rate in the next 5-10 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer.
Low Risk: affordable homes that are at-risk of converting to market rate in 10+ years and/or are owned by a large/stable non-profit, mission-driven developer.
35 Notes: While California Housing Partnership’s Preservation Database is the state’s most comprehensive source of information on subsidized affordable housing at risk of losing its affordable status and converting to market-rate housing, this database does not include all deed-restricted affordable units in the state. Consequently, there may be at-risk assisted units in a jurisdiction that are not captured in this data table. Per HCD guidance, local jurisdictions must also list the specific affordable housing developments at-risk of converting to market rate uses. This document provides aggregate numbers of at-risk units for each jurisdiction, but local planning staff should contact Danielle Mazzella with the California Housing Partnership at [email protected] to obtain a list of affordable properties that fall under this designation. California Housing Partnership uses the following categories for assisted housing developments in its database: Very-High Risk: affordable homes that are atrisk of converting to market rate within the next year that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer. High Risk: affordable homes that are at-risk of converting to market rate in the next 1-5 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer. Moderate Risk: affordable homes that are at-risk of converting to market rate in the next 5-10 years that do not have a known overlapping subsidy that would extend affordability and are not owned by a large/stable non-profit, mission-driven developer. Low Risk: affordable homes that are atrisk of converting to market rate in 10+ years and/or are owned by a large/stable non-profit, mission-driven developer.
Source: California Housing Partnership, Preservation Database (2020) This table is included in the Data Packet Workbook as Table RISK-01.
5.3 Substandard Housing
Housing costs in the region are among the highest in the country, which could result in households, particularly renters, needing to live in substandard conditions in order to afford housing. Generally, there is limited data on the extent of substandard housing issues in a community. However, the Census Bureau data included in the graph below gives a sense of some of the substandard conditions that may be present in Newark. For example, 0.3% of renters in Newark reported lacking a kitchen and 0.0% of renters lack plumbing, compared to 0.3% of owners who lack a kitchen and 0.1% of owners who lack plumbing.
Note on Substandard Housing
HCD requires Housing Elements to estimate the number of units in need of rehabilitation and replacement. As a data source for housing units in need of rehabilitation and replacement is not available for all jurisdictions in the region, ABAG was not able to provide this required data point in this document. To produce an estimate of housing needs in need of rehabilitation and replacement, staff can supplement the data below on substandard housing issues with additional local information from code enforcement, recent windshield surveys of properties, building department data, knowledgeable builders/developers in the community, or nonprofit housing developers or organizations. For more information, visit HCD’s Building Blocks page on Housing Stock Characteristics. 36 Figure 22: Substandard Housing Issues
Universe: Occupied housing units
Notes: Per HCD guidance, this data should be supplemented by local estimates of units needing to be rehabilitated or replaced based on recent windshield surveys, local building department data, knowledgeable builders/developers in the community, or nonprofit housing developers or organizations.
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25053, Table B25043, Table B25049 For the data table behind this figure, please refer to the Data Packet Workbook, Table HSG-06.
5.4 Home and Rent Values
Home prices reflect a complex mix of supply and demand factors, including an area’s demographic profile, labor market, prevailing wages and job outlook, coupled with land and construction costs. In the Bay Area, the costs of housing have long been among the highest in the nation. The typical home value in Newark was estimated at $978,600 by December of 2020, per data from Zillow. The largest proportion of homes were valued between $750k-$1M (see Figure 23). By comparison, the typical home value is $951,380 in Alameda County and $1,077,230 the Bay Area, with the largest share of units valued $500k-$750k.
The region’s home values have increased steadily since 2000, besides a decrease during the Great Recession. The rise in home prices has been especially steep since 2012, with the median home value in the Bay Area nearly doubling during this time. Since 2001, the typical home value has increased 165.8% in Newark from $368,220 to $978,600. This change is above the change in Alameda County, and above the change for the region (see Figure 24).
37 Figure 23: Home Values of Owner-Occupied Units
Universe: Owner-occupied units
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25075 For the data table behind this figure, please refer to the Data Packet Workbook, Table HSG-07.
Figure 24: Zillow Home Value Index (ZHVI)
Universe: Owner-occupied housing units
Notes: Zillow describes the ZHVI as a smoothed, seasonally adjusted measure of the typical home value and market changes across a given region and housing type. The ZHVI reflects the typical value for homes in the 35th to 65th percentile range. The 38 ZHVI includes all owner-occupied housing units, including both single-family homes and condominiums. More information on the ZHVI is available from Zillow. The regional estimate is a household-weighted average of county-level ZHVI files, where household counts are yearly estimates from DOF’s E-5 series For unincorporated areas, the value is a population weighted average of unincorporated communities in the county matched to census-designated population counts.
Source: Zillow, Zillow Home Value Index (ZHVI)
For the data table behind this figure, please refer to the Data Packet Workbook, Table HSG-08.
Similar to home values, rents have also increased dramatically across the Bay Area in recent years.
Many renters have been priced out, evicted or displaced, particularly communities of color. Residents finding themselves in one of these situations may have had to choose between commuting long distances to their jobs and schools or moving out of the region, and sometimes, out of the state.
In Newark, the largest proportion of rental units rented in the Rent $2000-$2500 category, totaling
26.8%, followed by 25.6% of units renting in the Rent $1500-$2000 category (see Figure 25). Looking beyond the city, the largest share of units is in the rent for $1500-$2000 category.
Figure 25: Contract Rents for Renter-Occupied Units
Universe: Renter-occupied housing units paying cash rent Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25056 For the data table behind this figure, please refer to the Data Packet Workbook, Table HSG-09.
Since 2009, the median rent has increased by 61.1% in Newark, from $1,510 to $2,110 per month (see Figure 26). In Alameda County, the median rent has increased 36.0%, from $1,240 to $1,690. The median rent in the region has increased significantly during this time from $1,200 to $1,850, a 54% increase.21
21 While the data on home values shown in Figure 24 comes from Zillow, Zillow does not have data on rent prices available for most Bay Area jurisdictions. To have a more comprehensive dataset on rental data for the region, the rent data in this document comes from the U.S. Census Bureau’s American Community Survey, which may not fully 39 Figure 26: Median Contract Rent
Universe: Renter-occupied housing units paying cash rent Notes: For unincorporated areas, median is calculated using distribution in B25056.
Source: U.S. Census Bureau, American Community Survey 5-Year Data releases, starting with 2005-2009 through 2015-2019, B25058, B25056 (for unincorporated areas). County and regional counts are weighted averages of jurisdiction median using B25003 rental unit counts from the relevant year.
For the data table behind this figure, please refer to the Data Packet Workbook, Table HSG-10.
5.5 Overpayment and Overcrowding
A household is considered “cost-burdened” if it spends more than 30% of its monthly income on housing costs, while those who spend more than 50% of their income on housing costs are considered “severely cost-burdened.” Low-income residents are the most impacted by high housing costs and experience the highest rates of cost burden. Spending such large portions of their income on housing puts low-income households at higher risk of displacement, eviction, or homelessness.
reflect current rents. Local jurisdiction staff may want to supplement the data on rents with local realtor data or other sources for rent data that are more current than Census Bureau data. 40 Figure 27: Cost Burden by Tenure
Universe: Occupied housing units
Notes: Cost burden is the ratio of housing costs to 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. HUD defines cost-burdened households as those whose monthly housing costs exceed 30% of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50% of monthly income.
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25070, B25091 For the data table behind this figure, please refer to the Data Packet Workbook, Table OVER-06.
Renters are often more cost-burdened than owners. While the housing market has resulted in home prices increasing dramatically, homeowners often have mortgages with fixed rates, whereas renters are more likely to be impacted by market increases. When looking at the cost burden across tenure in Newark, 29.7% of renters spend 30% to 50% of their income on housing compared to 16.2% of those that own (see Figure 27). Additionally, 14.1% of renters spend 50% or more of their income on housing, while 7.6% of owners are severely cost-burdened.
In Newark, 12.4% of households spend 50% or more of their income on housing, while 19.2% spend 30% to 50%. However, these rates vary greatly across income categories (see Figure 28). For example, 56.6% of Newark households making less than 30% of AMI spend the majority of their income on housing. For Newark residents making more than 100% of AMI, just 0.8% are severely cost-burdened, and 89.0% of those making more than 100% of AMI spend less than 30% of their income on housing. 41 Figure 28: Cost Burden by Income Level
Universe: Occupied housing units
Notes: Cost burden is the ratio of housing costs to 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. HUD defines cost-burdened households as those whose monthly housing costs exceed 30% of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50% of monthly income. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release
For the data table behind this figure, please refer to the Data Packet Workbook, Table OVER-05.
Currently, people of color are more likely to experience poverty and financial instability as a result of federal and local housing policies that have historically excluded them from the same opportunities extended to white residents. As a result, they often pay a greater percentage of their income on housing, and in turn, are at a greater risk of housing insecurity.
American Indian or Alaska Native, Non-Hispanic residents are the most cost burdened with 46.2% spending 30% to 50% of their income on housing, and Hispanic or Latinx residents are the most severely cost burdened with 22.1% spending more than 50% of their income on housing (see Figure 29). 42 Figure 29: Cost Burden by Race
Universe: Occupied housing units
Notes: Cost burden is the ratio of housing costs to 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. HUD defines cost-burdened households as those whose monthly housing costs exceed 30% of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50% of monthly income. For the purposes of this graph, the “Hispanic or Latinx” racial/ethnic group represents those who identify as having Hispanic/Latinx ethnicity and may also be members of any racial group. All other racial categories on this graph represent those who identify with that racial category and do not identify with Hispanic/Latinx ethnicity.
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release
For the data table behind this figure, please refer to the Data Packet Workbook, Table OVER-08.
Large family households often have special housing needs due to a lack of adequately sized affordable housing available. The higher costs required for homes with multiple bedrooms can result in larger families experiencing a disproportionate cost burden than the rest of the population and can increase the risk of housing insecurity.
In Newark, 22.3% of large family households experience a cost burden of 30%-50%, while 13.4% of households spend more than half of their income on housing. Some 18.5% of all other households have a cost burden of 30%-50%, with 12.1% of households spending more than 50% of their income on housing (see Figure 30).
43 Figure 30: Cost Burden by Household Size
Universe: Occupied housing units
Notes: Cost burden is the ratio of housing costs to 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. HUD defines cost-burdened households as those whose monthly housing costs exceed 30% of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50% of monthly income.
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release
For the data table behind this figure, please refer to the Data Packet Workbook, Table OVER-09.
When cost-burdened seniors are no longer able to make house payments or pay rents, displacement from their homes can occur, putting further stress on the local rental market or forcing residents out of the community they call home. Understanding how seniors might be cost-burdened is of particular importance due to their special housing needs, particularly for low-income seniors. 21.8% of seniors making less than 30% of AMI are spending the majority of their income on housing. For seniors making more than 100% of AMI, 89.3% are not cost-burdened and spend less than 30% of their income on housing (see Figure 31).
44 Figure 31: Cost-Burdened Senior Households by Income Level Universe: Senior households
Notes: For the purposes of this graph, senior households are those with a householder who is aged 62 or older. Cost burden is the ratio of housing costs to 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. HUD defines cost-burdened households as those whose monthly housing costs exceed 30% of monthly income, while severely cost-burdened households are those whose monthly housing costs exceed 50% of monthly income. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San JoseSunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release
For the data table behind this figure, please refer to the Data Packet Workbook, Table SEN-03.
Overcrowding occurs when the number of people living in a household is greater than the home was designed to hold. There are several different standards for defining overcrowding, but this report uses the Census Bureau definition, which is more than one occupant per room (not including bathrooms or kitchens). Additionally, the Census Bureau considers units with more than 1.5 occupants per room to be severely overcrowded.
Overcrowding is often related to the cost of housing and can occur when demand in a city or region is high. In many cities, overcrowding is seen more amongst those that are renting, with multiple households sharing a unit to make it possible to stay in their communities. In Newark, 9.3% of households that rent are severely overcrowded (more than 1.5 occupants per room), compared to 0.6% of households that own (see Figure 32). In Newark, 17.7% of renters experience moderate overcrowding (1 to 1.5 occupants per room), compared to 4.9% for those own. 45 Figure 32: Overcrowding by Tenure and Severity
Universe: Occupied housing units
Notes: The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded.
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release
For the data table behind this figure, please refer to the Data Packet Workbook, Table OVER-01.
Overcrowding often disproportionately impacts low-income households. 3.6% of very low-income households (below 50% AMI) experience severe overcrowding, while 1.4% of households above 100% experience this level of overcrowding (see Figure 33).
46 Figure 33: Overcrowding by Income Level and Severity Universe: Occupied housing units
Notes: The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San Jose-Sunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release
For the data table behind this figure, please refer to the Data Packet Workbook, Table OVER-04.
Communities of color are more likely to experience overcrowding similar to how they are more likely to experience poverty, financial instability, and housing insecurity. People of color tend to experience overcrowding at higher rates than White residents. In Newark, the racial group with the largest overcrowding rate is Other Race or Multiple Races (Hispanic and Non-Hispanic) (see Figure 34) 47 Figure 34: Overcrowding by Race
Universe: Occupied housing units
Notes: The Census Bureau defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens), and units with more than 1.5 persons per room are considered severely overcrowded. For this table, the Census Bureau does not disaggregate racial groups by Hispanic/Latinx ethnicity. However, data for the white racial group is also reported for white householders who are not Hispanic/Latinx. Since residents who identify as white and Hispanic/Latinx may have very different experiences within the housing market and the economy from those who identify as white and nonHispanic/Latinx, data for multiple white sub-groups are reported here. The racial/ethnic groups reported in this table are not all mutually exclusive. Therefore, the data should not be summed as the sum exceeds the total number of occupied housing units for this jurisdiction. However, all groups labelled “Hispanic and Non-Hispanic” are mutually exclusive, and the sum of the data for these groups is equivalent to the total number of occupied housing units.
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25014 For the data table behind this figure, please refer to the Data Packet Workbook, Table OVER-03. 48 6 SPECIAL HOUSING NEEDS
6.1 Large Households
Large households often have different housing needs than smaller households. If a city’s rental housing stock does not include larger apartments, large households who rent could end up living in overcrowded conditions. In Newark, for large households with 5 or more persons, most units (57.4%) are owner occupied (see Figure 35). In 2017, 17.4% of large households were very low-income, earning less than 50% of the area median income (AMI).
Figure 35: Household Size by Tenure
Universe: Occupied housing units
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25009 For the data table behind this figure, please refer to the Data Packet Workbook, Table LGFEM-01.
The unit sizes available in a community affect the household sizes that can access that community.
Large families are generally served by housing units with 3 or more bedrooms, of which there are 10,345 units in Newark. Among these large units with 3 or more bedrooms, 17.4% are owner-occupied and 82.6% are renter occupied (see Figure 36).
49 Figure 36: Housing Units by Number of Bedrooms
Universe: Housing units
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B25042 For the data table behind this figure, please refer to the Data Packet Workbook, Table HSG-05.
6.2 Female-Headed Households
Households headed by one person are often at greater risk of housing insecurity, particularly femaleheaded households, who may be supporting children or a family with only one income. In Newark, the largest proportion of households is Married-couple Family Households at 63.0% of total, while FemaleHeaded Households make up 11.8% of all households. 50 Figure 37: Household Type
Universe: Households
Notes: For data from the Census Bureau, a “family household” is a household where two or more people are related by birth, marriage, or adoption. “Non-family households” are households of one person living alone, as well as households where none of the people are related to each other.
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B11001 For the data table behind this figure, please refer to the Data Packet Workbook, Table POPEMP-23.
Female-headed households with children may face particular housing challenges, with pervasive gender inequality resulting in lower wages for women. Moreover, the added need for childcare can make finding a home that is affordable more challenging.
In Newark, 22.8% of female-headed households with children fall below the Federal Poverty Line, while
5.7% of female-headed households without children live in poverty (see Figure 38). 51 Figure 38: Female-Headed Households by Poverty Status Universe: Female Households
Notes: The Census Bureau uses a federally defined poverty threshold that remains constant throughout the country and does not correspond to Area Median Income.
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B17012 For the data table behind this figure, please refer to the Data Packet Workbook, Table LGFEM-05.
6.3 Seniors
Senior households often experience a combination of factors that can make accessing or keeping affordable housing a challenge. They often live on fixed incomes and are more likely to have disabilities, chronic health conditions and/or reduced mobility.
Seniors who rent may be at even greater risk for housing challenges than those who own, due to income differences between these groups. The largest proportion of senior households who rent make 0%-30% of AMI, while the largest proportion of senior households who are homeowners falls in the income group Greater than 100% of AMI (see Figure 39).
52 Figure 39: Senior Households by Income and Tenure
Universe: Senior households
Notes: For the purposes of this graph, senior households are those with a householder who is aged 62 or older. Income groups are based on HUD calculations for Area Median Income (AMI). HUD calculates the AMI for different metropolitan areas, and the nine county Bay Area includes the following metropolitan areas: Napa Metro Area (Napa County), Oakland-Fremont Metro Area (Alameda and Contra Costa Counties), San Francisco Metro Area (Marin, San Francisco, and San Mateo Counties), San JoseSunnyvale-Santa Clara Metro Area (Santa Clara County), Santa Rosa Metro Area (Sonoma County), and Vallejo-Fairfield Metro Area (Solano County). The AMI levels in this chart are based on the HUD metro area where this jurisdiction is located.
Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) ACS tabulation, 2013-2017 release
For the data table behind this figure, please refer to the Data Packet Workbook, Table SEN-01.
6.4 People with Disabilities
People with disabilities face additional housing challenges. Encompassing a broad group of individuals living with a variety of physical, cognitive and sensory impairments, many people with disabilities live on fixed incomes and are in need of specialized care, yet often rely on family members for assistance due to the high cost of care.
When it comes to housing, people with disabilities are not only in need of affordable housing but accessibly designed housing, which offers greater mobility and opportunity for independence.
Unfortunately, the need typically outweighs what is available, particularly in a housing market with such high demand. People with disabilities are at a high risk for housing insecurity, homelessness and institutionalization, particularly when they lose aging caregivers. Figure 40 shows the rates at which different disabilities are present among residents of Newark. Overall, 7.6% of people in Newark have a disability of any kind.22
22 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.
53 Figure 40: Disability by Type
Universe: Civilian noninstitutionalized population 18 years and over Notes: 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. The Census Bureau provides the following definitions for these disability types:
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.
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B18102, Table B18103, Table B18104, Table B18105, Table B18106, Table B18107.
For the data table behind this figure, please refer to the Data Packet Workbook, Table DISAB-01.
State law also requires Housing Elements to examine the housing needs of people with developmental disabilities. Developmental disabilities are defined as severe, chronic, and attributed to a mental or physical impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy, cerebral palsy, and mild to severe mental retardation. Some people with developmental disabilities are unable to work, rely on Supplemental Security Income, and live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them.23 In Newark, of the population with a developmental disability, children under the age of 18 make up
56.3%, while adults account for 43.7%.
23 For more information or data on developmental disabilities in your jurisdiction, contact the Golden Gate Regional Center for Marin, San Francisco and San Mateo Counties; the North Bay Regional Center for Napa, Solano and Sonoma Counties; the Regional Center for the East Bay for Alameda and Contra Costa Counties; or the San Andreas Regional Center for Santa Clara County.
54 Table 5: Population with Developmental Disabilities by Age Age Group value
Age Under 18 156
Age 18+ 121
Universe: Population with developmental disabilities
Notes: The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were crosswalked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction.
Source: California Department of Developmental Services, Consumer Count by California ZIP Code and Age Group (2020) This table is included in the Data Packet Workbook as Table DISAB-04.
The most common living arrangement for individuals with disabilities in Newark is the home of parent /family /guardian.
Table 6: Population with Developmental Disabilities by Residence Residence Type value
Home of Parent /Family /Guardian 244
Community Care Facility 20
Independent /Supported Living 12
Foster /Family Home 5
Other 0
Intermediate Care Facility 0
Universe: Population with developmental disabilities
Notes: The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities including cerebral palsy, intellectual disability, Down syndrome, autism, epilepsy, and related conditions. The California Department of Developmental Services provides ZIP code level counts. To get jurisdiction-level estimates, ZIP code counts were crosswalked to jurisdictions using census block population counts from Census 2010 SF1 to determine the share of a ZIP code to assign to a given jurisdiction.
Source: California Department of Developmental Services, Consumer Count by California ZIP Code and Residence Type (2020) This table is included in the Data Packet Workbook as Table DISAB-05.
6.5 Homelessness
Homelessness remains an urgent challenge in many communities across the state, reflecting a range of social, economic, and psychological factors. Rising housing costs result in increased risks of community members experiencing homelessness. Far too many residents who have found themselves housing insecure have ended up unhoused or homeless in recent years, either temporarily or longer term.
Addressing the specific housing needs for the unhoused population remains a priority throughout the region, particularly since homelessness is disproportionately experienced by people of color, people with disabilities, those struggling with addiction and those dealing with traumatic life circumstances. In Alameda County, the most common type of household experiencing homelessness is those without children in their care. Among households experiencing homelessness that do not have children, 84.0% are unsheltered. Of homeless households with children, most are sheltered in emergency shelter (see Figure 41).
55 Figure 41: Homelessness by Household Type and Shelter Status, Alameda County Universe: Population experiencing homelessness
Notes: This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness.
Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019)
For the data table behind this figure, please refer to the Data Packet Workbook, Table HOMELS-01.
People of color are more likely to experience poverty and financial instability as a result of federal and local housing policies that have historically excluded them from the same opportunities extended to white residents. Consequently, people of color are often disproportionately impacted by homelessness, particularly Black residents of the Bay Area. In Alameda County, Black or African American (Hispanic and Non-Hispanic) residents represent the largest proportion of residents experiencing homelessness and account for 47.3% of the homeless population, while making up 10.6% of the overall population (see Figure 42).
56 Figure 42: Racial Group Share of General and Homeless Populations, Alameda County
Universe: Population experiencing homelessness
Notes: This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness. HUD does not disaggregate racial demographic data by Hispanic/Latinx ethnicity for people experiencing homelessness. Instead, HUD reports data on Hispanic/Latinx ethnicity for people experiencing homelessness in a separate table.
Accordingly, the racial group data listed here includes both Hispanic/Latinx and non-Hispanic/Latinx individuals.
Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-I) For the data table behind this figure, please refer to the Data Packet Workbook, Table HOMELS-02.
In Alameda, Latinx residents represent 17.3% of the population experiencing homelessness, while Latinx residents comprise 22.5% of the general population (see Figure 43). 57 Figure 43: Latinx Share of General and Homeless Populations, Alameda County Universe: Population experiencing homelessness
Notes: This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness. The data from HUD on Hispanic/Latinx ethnicity for individuals experiencing homelessness does not specify racial group identity. Accordingly, individuals in either ethnic group identity category (Hispanic/Latinx or non-Hispanic/Latinx) could be of any racial background.
Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019); U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B01001(A-I) For the data table behind this figure, please refer to the Data Packet Workbook, Table HOMELS-03.
Many of those experiencing homelessness are dealing with severe issues – including mental illness, substance abuse and domestic violence – that are potentially life threatening and require additional assistance. In Alameda County, homeless individuals are commonly challenged by severe mental illness, with 2,590 reporting this condition (see Figure 12). Of those, some 78.3% are unsheltered, further adding to the challenge of handling the issue.
Note on Homelessness Data
Notably all the data on homelessness provided above is for the entire county. This data comes from the Department of Housing and Urban Development’s (HUD) Point in Time count, which is the most comprehensive publicly available data source on people experiencing homelessness. HUD only provides this data at the countylevel and not for specific jurisdictions. However, Housing Element law requires local jurisdictions to estimate or count of the daily average number of people lacking shelter. Therefore, staff will need to supplement the data in this document with additional local data on the number of people experiencing homelessness. If staff do not have estimates of people experiencing homelessness in their jurisdiction readily available, HCD recommends contacting local service providers such as continuum-of-care providers, local homeless shelter and service providers, food 58 programs, operators of transitional housing programs, local drug and alcohol program service providers, and county mental health and social service departments.24
Figure 44: Characteristics for the Population Experiencing Homelessness, Alameda County
Universe: Population experiencing homelessness
Notes: This data is based on Point-in-Time (PIT) information provided to HUD by CoCs in the application for CoC Homeless Assistance Programs. The PIT Count provides a count of sheltered and unsheltered homeless persons on a single night during the last ten days in January. Each Bay Area county is its own CoC, and so the data for this table is provided at the county-level. Per HCD’s requirements, jurisdictions will need to supplement this county-level data with local estimates of people experiencing homelessness. These challenges/characteristics are counted separately and are not mutually exclusive, as an individual may report more than one challenge/characteristic. These counts should not be summed.
Source: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Populations and Subpopulations Reports (2019)
For the data table behind this figure, please refer to the Data Packet Workbook, Table HOMELS-04.
In Newark, the student population experiencing homelessness totaled 300 during the 2019-20 school year and increased by 9.1% since the 2016-17 school year. By comparison, Alameda County has seen a
18.7% decrease in the population of students experiencing homelessness since the 2016-17 school year, and the Bay Area population of students experiencing homelessness decreased by 8.5%. During the 2019-2020 school year, there were still some 13,718 students experiencing homelessness throughout the region, adding undue burdens on learning and thriving, with the potential for longer term negative effects.
The number of students in Newark experiencing homelessness in 2019 represents 10.5% of the Alameda County total and 2.2% of the Bay Area total.
24 For more information, see HCD’s Building Blocks webpage for People Experiencing Homelessness:
https://www.hcd.ca.gov/community-development/building-blocks/housing-needs/people-experiencinghomelessness.shtml 59 Table 7: Students in Local Public Schools Experiencing Homelessness AcademicYear Newark Alameda County Bay Area
2016-17 275 3531 14990
2017-18 236 3309 15142
2018-19 192 3182 15427
2019-20 300 2870 13718
Universe: Total number of unduplicated primary and short-term enrollments within the academic year (July 1 to June 30), public schools
Notes: The California Department of Education considers students to be homeless if they are unsheltered, living in temporary shelters for people experiencing homelessness, living in hotels/motels, or temporarily doubled up and sharing the housing of other persons due to the loss of housing or economic hardship. The data used for this table was obtained at the school site level, matched to a file containing school locations, geocoded and assigned to jurisdiction, and finally summarized by geography.
Source: California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020) This table is included in the Data Packet Workbook as Table HOMELS-05.
6.6 Farmworkers
Across the state, housing for farmworkers has been recognized as an important and unique concern.
Farmworkers generally receive wages that are considerably lower than other jobs and may have temporary housing needs. Finding decent and affordable housing can be challenging, particularly in the current housing market.
In Newark, the migrant worker student population totaled 72 during the 2019-20 school year and has decreased by 24.0% since the 2016-17 school year. The trend for the region for the past few years has been a decline of 2.4% in the number of migrant worker students since the 2016-17 school year. The change at the county level is a 9.6% decrease in the number of migrant worker students since the 2016- 17 school year.
Table 8: Migrant Worker Student Population
AcademicYear Newark Alameda County Bay Area
2016-17 75 874 4630
2017-18 79 1037 4607
2018-19 72 785 4075
2019-20 57 790 3976
Universe: Total number of unduplicated primary and short-term enrollments within the academic year (July 1 to June 30), public schools
Notes: The data used for this table was obtained at the school site level, matched to a file containing school locations, geocoded and assigned to jurisdiction, and finally summarized by geography.
Source: California Department of Education, California Longitudinal Pupil Achievement Data System (CALPADS), Cumulative Enrollment Data (Academic Years 2016-2017, 2017-2018, 2018-2019, 2019-2020) This table is included in the Data Packet Workbook as Table FARM-01. 60 According to the U.S. Department of Agriculture Census of Farmworkers, the number of permanent farm workers in Alameda County has decreased since 2002, totaling 305 in 2017, while the number of seasonal farm workers has decreased, totaling 288 in 2017 (see Figure 45).
Figure 45: Farm Operations and Farm Labor by County, Alameda County Universe: Hired farm workers (including direct hires and agricultural service workers who are often hired through labor contractors)
Notes: Farm workers are considered seasonal if they work on a farm less than 150 days in a year, while farm workers who work on a farm more than 150 days are considered to be permanent workers for that farm.
Source: U.S. Department of Agriculture, Census of Farmworkers (2002, 2007, 2012, 2017), Table 7: Hired Farm Labor For the data table behind this figure, please refer to the Data Packet Workbook, Table FARM-02.
6.7 Non-English Speakers
California has long been an immigration gateway to the United States, which means that many languages are spoken throughout the Bay Area. Since learning a new language is universally challenging, it is not uncommon for residents who have immigrated to the United States to have limited English proficiency. This limit can lead to additional disparities if there is a disruption in housing, such as an eviction, because residents might not be aware of their rights or they might be wary to engage due to immigration status concerns. In Newark, 6.7% of residents 5 years and older identify as speaking English not well or not at all, which is below the proportion for Alameda County.
Throughout the region the proportion of residents 5 years and older with limited English proficiency is 8%.
61 Figure 46: Population with Limited English Proficiency Universe: Population 5 years and over
Source: U.S. Census Bureau, American Community Survey 5-Year Data (2015-2019), Table B16005 For the data table behind this figure, please refer to the Data Packet Workbook, Table AFFH-03.
NEWARK GENERAL PLAN HOUSING
APPENDIX B PUBLIC ENGAGEMENT
AND INPUT SUMMARY
From March 15th through April 30th, 342 people participated in the City of Newark’s online community conversation about housing issues and opportunities in Newark. 300 of those responses were in English, 38 in Spanish and 4 in Chinese.
Participants were invited to answer a series of 22 questions covering housing experience and preference, environmental justice and demographic information. The survey was hosted on the SurveyMonkey platform accessible via the city’s webpage.
The survey was distributed and advertised in multilingual materials through various platforms to reach as broad of a cross section of the community as possible. It was promoted through social media, print newsletters, email lists to special populations (e.g., seniors, individuals with developmental disabilities), in-person events, and outreach to partner organizations. Our partner organizations were able to extend our reach to the Latinx community, people experiencing and escaping from domestic violence, individuals transitioning from homelessness, and families in the Newark Unified School District.
Essential insights from the survey are that quality of life, in addition to increasing housing affordability and homeownership opportunities for Newark residents, is of great importance and concern.
Approach to Analyses
The following is a summary of responses to each survey question broken down by answer choice.
Response Count signifies the number of selections made for a particular answer choice while Respondent Percent signifies the number of respondents who chose the answer choice out of the total number of survey respondents (i.e., 342 people), including the 38 Spanish responses and 4 Chinese responses.
Note: For multi-select questions, the respondent percentages may reflect more than one selection by a single individual rather than all unique responses. Additionally, please keep in mind that for these questions the response count will not sum to the number of respondents who answered the question.
APPENDIX B PUBLIC ENGAGEMENT AND INPUT SUMMARY B-1
NEWARK GENERAL PLAN HOUSING
Q1. How concerned are you about the availability of affordable housing in Newark?
Answer Choices Response Count Respondent % (out of 342) Very concerned 182 53%
Somewhat concerned 76 22%
Not that concerned 44 13%
Not at all concerned 35 10%
No opinion/ not sure 4 1%
Number of Respondents 341 100%
Q2. As we look to improve housing opportunities in Newark, which of the following do you think are the three biggest issues we need to address? Answer Choices
Response Count
(multi-select)
Respondent %
(out of 342)
We need more homeownership opportunities
especially for first time homeowners
226 66%
We need more affordable rental opportunities 140 41%
We need to encourage more housing types
(apartments, accessory dwelling Units,
duplexes/triplexes)
93 27%
We need more opportunities for those that are
unhoused or in danger of being unhoused
96 28%
We need stronger protections for renters
(minimum lease terms, relocation benefits)
44 13%
We need low cost home improvement programs for
seniors and those on limited incomes
135 39%
Other (please specify) 60 18%
Number of Respondents 319 93%
APPENDIX B PUBLIC ENGAGEMENT AND INPUT SUMMARY B-2
NEWARK GENERAL PLAN HOUSING
Q3. Thinking about the cost of housing from one year ago … Answer Choices
Response
Count
Respondent %
(out of 342)
It is much less expensive to find a home 8 2%
Somewhat less expensive 6 2%
About the same 22 6%
Somewhat more expensive 73 21%
Much more expensive 188 55%
Does not apply/don't know 10 3%
Number of Respondents 307 90%
Q4. Based on the definition of “affordable” housing as being housing that takes 30% or less of your income to pay for it, how would you describe your current housing situation?
Answer Choices Response Count
Respondent %
(out of 342)
I’m in a home I like at a price I can afford 136 40%
I’m in a home I like but it’s taking more than
30% of my income to be here
97 28%
I’m in a home I can afford, but it’s not a place
I like or meets my needs
54 16%
I’m in a home I can’t afford, and don’t like 28 8%
Number of Respondents 315 92%
APPENDIX B PUBLIC ENGAGEMENT AND INPUT SUMMARY B-3
NEWARK GENERAL PLAN HOUSING
Q5. If you’re not happy with your current housing situation, what would make it better? (Check all that apply.)
Answer Choices
Response Count
(multi-select)
Respondent %
(out of 342)
I need a home with more space 106 31%
I would like to live in a different neighborhood 44 13% I rent, but would like to own my own home 86 25%
I need a place that is more accessible due to disabilities 14 4% I need a home with fewer housemates or roommates 24 7%
I like my home, but need to pay less 67 20%
I’m happy with my current housing situation 113 33%
Number of Respondents 299 87%
Q6. Of the following five options, which three do you think are the most urgent affordable housing needs in Newark at this time? Answer Choices
Response Count
(multi-select)
Respondent %
(out of 342)
Housing for families - larger units with more bedrooms for all families, especially multigenerational or large families 171 50%
Housing for smaller households - smaller units or housing types for young adults and couples starting out, single households, students and seniors looking to downsize
148 43%
Housing for seniors - specific developments for seniors, including housing with supportive services
112 33%
Housing for people with special needs - greater accessibility and supportive services for those with disabilities
47 14%
Housing for those experiencing homelessness - transitional housing and permanent supportive housing
82 24%
Housing for low-income and underserved households – subsidized housing
119 35%
Other (please specify) 30 9%
Number of Respondents 298 87%
APPENDIX B PUBLIC ENGAGEMENT AND INPUT SUMMARY B-4
NEWARK GENERAL PLAN HOUSING
Q7. Thinking about the future of your neighborhood, what gives you optimism?
The survey received more than 200 responses to this question which were categorized and summarized in part in the community engagement summary included in this Housing Element.
Q8. Do you see your neighborhood as a place of opportunity for yourself and/or your family?
Answer Choices
Response
Count
Respondent %
(out of 342)
Yes 121 35%
No 60 18%
Somewhat 96 28%
Number of Respondents 277 81%
Q9. If you didn’t answer yes to the previous question, what are three of the most pressing issues that would need to change to feel like there is more opportunity? (Please select up to three)
Answer Choices
Response Count
(multi-select)
Respondent %
(out of 342)
Pollution from vehicles on neighborhood streets and freeways 55 16% Healthy food and grocery stores close to home or work 71 21% City infrastructure and facilities that support physical activity, including sidewalks, bicycle lanes, parks, and recreation centers 112 33%
Air or chemical pollution from industrial businesses and activities.
52 15%
Easy to access health care facilities 35 10%
Affordable, safe, and healthy housing conditions 106 31% Educational opportunities that are academically and culturally supportive
86 25%
Number of Respondents 219 64%
APPENDIX B PUBLIC ENGAGEMENT AND INPUT SUMMARY B-5
NEWARK GENERAL PLAN HOUSING
Q10. The city could do a variety of things to create more housing affordability. of the following six options, which three do you think are the most promising or worth doing? (Please choose 3)
Answer Choices
Response Count
(multi-select)
Respondent %
(out of 342)
Create incentives for building affordable housing 120 35% Reduce the cost of building all housing, but especially affordable housing through lower fees and faster approvals
113 33%
Allow for a larger variety of housing through the city 93 27% Use city-owned land for affordable housing 94 27%
Use city funds to get more state, federal and private funding for affordable housing (through the city’s Affordable Housing Trust Fund)
117 34%
Enact policies such as inclusionary zoning that allow for a portion of affordable units in each development
96 28%
Number of Respondents 260 76%
Q11. What kind of housing would you like to see more of? (Check all that apply.)
Answer Choices Response Count(multi-select) Respondent % (out of 342) Backyard cottages 125 37%
Duplexes, triplexes and fourplex 86 25%
Cottage clusters 106 31%
Townhomes 104 30%
Small to mid-size multifamily 77 23%
Multifamily buildings downtown 75 22%
Number of Respondents 252 74%
APPENDIX B PUBLIC ENGAGEMENT AND INPUT SUMMARY B-6
NEWARK GENERAL PLAN HOUSING
Q12. Where in Newark would you like to see more housing? (Please select all that apply)
Answer Choices
Response Count
(multi-select)
Respondent %
(out of 342)
Old Town (Thornton Ave between Cherry Street and Ash Street) 141 41% Bayside Newark (formerly known as The Dumbarton
Transit-Oriented Development, near Willow Street and Enterprise Drive)
99 29%
NewPark Place area (Newpark Mall Road and Cedar Blvd) 156 46% Other (please specify) 46 13%
Number of Respondents 248 73%
Q13. Which hazards, both natural and human, do you think are most important for Newark to address? (Please choose three)
Answer Choices
Response Count
(multi-select)
Respondent %
(out of 342)
None of the above 8 2%
Wildfires 53 15%
More frequent and intense heat waves 87 25%
Earthquakes 119 35%
Multi-year drought 179 52%
Sea-level rise and related flooding 150 44%
Hazardous materials spills 70 20%
Other (please specify) 32 9%
Number of Respondents 264 77%
APPENDIX B PUBLIC ENGAGEMENT AND INPUT SUMMARY B-7
NEWARK GENERAL PLAN HOUSING
Q14. How concerned are you about the impact of sea level rise, bringing the possibility of increased flooding to the lower-lying communities of Newark?
Answer Choices
Response
Count
Respondent %
(out of 342)
Very concerned about the impact flooding will have on lower-lying communities
100 29%
Somewhat concerned about the impact flooding will have on these communities
92 27%
Not really concerned about it 50 15%
No opinion, don’t have enough information 26 8%
Number of Respondents 268 78%
Q15. Are there pollution and environmental issues you are concerned about in your neighborhood or larger community? (If so, please check all that apply.)
Answer Choices
Response Count
(multi-select)
Respondent %
(out of 342)
Issues related to car and truck traffic: Noise, air pollution 126 37% Issues connected to industry in the area: air pollution, dangerous fumes, dumping of chemicals
121 35%
Poor quality drinking water 81 24%
Trash in public spaces, vacant lots, graffiti 168 49%
Other (please specify) 29 8%
Number of Respondents 250 73%
APPENDIX B PUBLIC ENGAGEMENT AND INPUT SUMMARY B-8
NEWARK GENERAL PLAN HOUSING
Q16. What is your connection to Newark? (Please select all that apply.) Answer Choices
Response Count
(multi-select)
Respondent %
(out of 342)
Live here 242 71%
Work here 51 15%
Go to school here 40 12%
Have a business here 15 4%
Have family or grew up here (but do not live here) 23 7% Interested in Newark housing issues (but do not live here) 10 3% Number of Respondents 255 75%
Q17. Currently I live…
Answer Choices Response Count Respondent % (out of 342) In a home or condo I own 168 49%
In a home or apartment I rent 72 21%
In an unstable/unhoused situation 3 1%
Prefer not to say 11 3%
Number of Respondents 254 74%
Q18. How would you describe your home?
Answer Choices Response Count Respondent % (out of 342) A single family home 196 57%
A multi-family home such as a duplex or
apartment building
53 15%
A mobile or manufactured home 1 0.3%
Other (please specify) 7 2%
Number of Respondents 250 73%
APPENDIX B PUBLIC ENGAGEMENT AND INPUT SUMMARY B-9
NEWARK GENERAL PLAN HOUSING
Q19. What is your age?
Answer Choices Response Count Respondent % (out of 342) Under 19 1 0.3%
20-29 9 3%
30-49 153 45%
50-69 72 21%
70+ 18 5%
Number of Respondents 253 74%
Q20. What is your race and/or ethnicity? (Check all that apply.) Answer Choices Response Count(multi-select) Respondent % (out of 342) American Indian or Alaskan Native 8 2%
Asian or Asian American 63 18%
Black or African American 3 1%
Hispanic or Latino 82 24%
Native Hawaiian or Pacific Islander 8 2%
White or Caucasian 107 31%
Other (please specify) 10 3%
Number of Respondents 241 70%
APPENDIX B PUBLIC ENGAGEMENT AND INPUT SUMMARY B-10
NEWARK GENERAL PLAN HOUSING
Q21. We would love for you to be involved in this process. If you have not attended public meetings in the past, please share what is keeping you from attending. (Please check all that apply.)
Answer Choices
Response Count
(multi-select)
Respondent %
(out of 342)
I have difficulty understanding what is being said in English 18 5% I don't have the time to attend – too busy with work and/ or family 102 30%
I need child care to attend 25 7%
I don’t feel that my opinions are heard and taken into
consideration 88 26%
The time and /or day of the week meetings are held makes it difficult for me to attend 47 14%
Other (please specify) 52 15%
Number of Respondents 200 58%
Q22. and let us know if there’s anything else you want to tell us:
The city received more than 200 comments which were categorized and used to inform policies and programs reflected in this document.
APPENDIX B PUBLIC ENGAGEMENT AND INPUT SUMMARY B-11
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES
INVENTORY
Introduction
A Housing Element must include an inventory of available land that is appropriately zoned and suitable for housing development to accommodate a jurisdiction’s Regional Housing Needs Allocation (RHNA) as required by State law. This inventory for the City of Newark focuses on residential sites that are currently in the development pipeline, or vacant and non-vacant sites that can be made available for housing development affordable at varying income levels. This Appendix summarizes the evaluation of potential housing sites, and the adequacy of sites to meet development capacities to accommodate the City’s regional housing needs for the 2023-2031 planning period.
California law (Government Code Sections 65583 (a)(3)) requires that the Housing Element contain an inventory of land suitable for residential development, including vacant sites and non-vacant (i.e., underutilized) sites having potential for development. State law also requires an analysis of the relationship to zoning and services to these sites as well as identifying sites throughout the community, in a manner that is consistent with its duty to affirmatively further fair housing (AFFH).
The analysis presented in this Appendix demonstrates that there is an adequate supply of suitable land to accommodate the City’s housing allocation of 1,874 units, plus a surplus of 980 units to act as a “buffer” if sites develop to non-residential or at different affordability levels than assumed in the sites inventory. This section is organized by the following topics:
● Summary of Newark’s projected housing needs by AMI level ● Capacity to Accommodate RHNA
● Sites selection process, including a description of the methodology and evaluation of site criteria, realistic unit capacity, and sites to accommodate varied income levels ● Evaluation of sites in meeting AFFH requirements
● Individual site profiles
Projected Housing Needs
A key component of any Housing Element Update is identifying adequate sites to address the jurisdiction’s Regional Housing Needs Allocation (RHNA). The California Department of Housing and Community Development (HCD) determines state-wide projected housing needs and allocates new housing unit target numbers to regional councils of government (COGs). State law (California Government Code Section 65584) provides for COGs to then prepare and adopt plans APPENDIX C HOUSING SITES C-1
NEWARK GENERAL PLAN HOUSING
that assign a “fair share” of the region’s housing needs to each city and county. The Association of Bay Area Governments (ABAG) is the COG that determines fair-share portions of state allocations for Newark. .
The City’s RHNA requirements for the 2023-2031 Housing Element projection period are summarized in Table C- 1 below. For the 2023-2031 Housing Element planning period, the City of Newark is required to plan to accommodate the development of at least 1,874 housing units. This includes 464 units for very low-income households, 268 units for low-income households, 318 units for moderate-income households, and 824 units for above moderate-income households.
Housing Needs for Extremely Low-Income Households
Although the RHNA does not include allocations for extremely low-income households, Housing Element Law requires that jurisdictions estimate the need for housing units affordable to extremely low-income households and plan to accommodate this need. Extremely low-income households are those with incomes less than 30% of area median income. In Alameda County, 30% of the AMI is the equivalent to an annual income of $42,850 for a family of four. Households with extremely low incomes have a variety of housing situations and needs. For example, most families and individuals receiving public assistance, such as supplemental security insurance (SSI) or disability insurance, are considered extremely low-income households. Many households with multiple wage earners – including food service workers, full-time students, teachers, farmworkers, and healthcare professionals – can also fall into lower AMI categories due to relatively stagnant wages in these industries.
HCD’s official Housing Element guidance notes that jurisdictions can use their RHNA for very low-income households (those making zero to 50 percent AMI) to calculate their projected need for extremely low-income households. HCD provides three methodologies for estimating this need: 1) allocate the percentage of very low-income need to extremely low-income households based on the ABAG region’s proportion; 2) allocate the percentage of very low-income need to extremely low -income households based on the current proportion for Newark; 3) assume that 50 percent of Newark’s very low-income RHNA is for extremely low-income households. To estimate the projected housing need for extremely low-income households, 50 percent of Newark’s 464 very low-income RHNA units are assumed to serve extremely low-income households. Based on this methodology, the City has a projected need of 232 units for extremely low-income households over the 2023-2031 Housing Element planning period. More than half of this allocation will be provided through the Cedar Creek Apartments, which is already in the development pipeline and has received $6M in funding support from the City’s Affordable Housing Impact Fee Fund.
APPENDIX C HOUSING SITES C-2
NEWARK GENERAL PLAN HOUSING
Capacity to Accommodate RHNA
The total realistic development capacity of all sites in the land inventory is detailed in Table C-1 below which lists all consolidated sites in the sites inventory and total residential capacity against the City’s 6th cycle RHNA. The total realistic capacity shown is 2,854 units, which exceeds the net target of 1,874 units the City is required to plan to accommodate for its RHNA, and also supplements that allocation by providing a significant buffer representing more than 100 percent of the required RHNA for all income levels; this includes a 13 percent buffer for very low-income units and 10 percent for low-income units. HCD recommends that jurisdictions provide a 15 to 30 percent buffer beyond the minimum RHNA target to comply with the “no net loss” provisions of State Housing Element Law that require the jurisdiction to maintain sufficient capacity to accommodate its RHNA for the duration of the planning period at every income level. In addition to considering the aggregate number of units that the sites can accommodate, it is necessary to consider the potential for sites to accommodate housing that is affordable to all income levels, in accordance with the RHNA allocations, as discussed in the “Evaluation of Sites to Accommodate Varied Income Levels” .
Each of the two primary project types, Pipeline Projects and Sites Zoned for Housing, are presented in Table C-1 below and described in further detail in the Sites Selection section. As shown in Table C-1, the number of units from Pipeline Projects represents 67 percent of the city’s RHNA, including 59 percent of Newark’s RHNA for very low-income (VLI) housing. Though these Pipeline units do not fulfill the RHNA allocation at every income level, this demonstrates there are sufficient sites for the City’s RHNA and provides strong evidence there is residential developer interest and economic feasibility for housing development on the types of sites, including non-vacant sites, identified in this inventory. Table C-2 lists the APNs and acreage for all sites zoned for housing.
The following map shows the distribution of sites throughout the City of Newark with an inset for the boundary of the Old Town Specific Plan. Parcels indicated in yellow are active project sites (pipeline projects) while sites indicated in red are sites zoned for housing, or locations whose zoning and land use will support new housing. The map also shows three specific plan areas: Old Town Specific Plan, Bayside Newark, and NewPark Place Specific Plan. The site numbers match data in the following tables which show unit counts and the more detailed summary sheets found later in this document.
APPENDIX C HOUSING SITES C-3
NEWARK GENERAL PLAN HOUSING
Figure C-1: Housing Sites for the RHNA 6th Cycle
Source: Adapted by Community Planning Collaborative, 2023 APPENDIX C HOUSING SITES C-4
NEWARK GENERAL PLAN HOUSING
Table C-1: City of Newark Sites Inventory
Site Name
Income Level
Total Units
Very Low Low Moderate
Above
Moderate
Planned and Proposed Projects (Also known as pipeline projects are sites 1 through 13) 1 Bridgeway / Gateway
(under construction)
0 0 0 134 134
2 FMC Willow - North (Parcel C)
(entitled)
47 23 21 64 155
3 FMC Willow - South
(entitled)
0 0 0 215 215
4 Harbor Pointe
(under construction)
0 0 0 192 192
5 Cedar Homes- 38478 Cedar Boulevard
(entitled)
0 0 0 118 118
6 Cedar Community Apts.
(complete)
124 0 0 1 125
7 Timber St. Senior Living
(entitled)
39 39 1 0 79
8 Lepakshi Homes - Building A, 6781 Thornton
Ave.
(active application)
0 0 0 60 60
9 Lepakshi Homes - Building B, 6781 Thornton
Ave.
(active application)
8 4 3 13 28
10 SAHA Development- 6347 -6375 Thornton
Ave.
(active application)
56 0 1 0 57
11 Mulberry Residential 36952 Mulberry Street
(entitled)
0 0 0 8 8
12 Bain Ave. & Magnolia St. - 37280 Magnolia
Street
(under construction)
0 0 0 10 10
13 Waymark Homes - Cedar Blvd (entitled) 0 0 0 76 76
Subtotal Planned and Proposed 274 66 26 891 1,257
Sites Zoned for Housing (Vacant and Nonvacant sites are sites 14 through 28) APPENDIX C HOUSING SITES C-5
NEWARK GENERAL PLAN HOUSING
Site Name
Income Level
Total Units
Very Low Low Moderate
Above
Moderate
14 NewPark Place (Phases A to D) 36 18 18 535 607
15 Grocery Outlet Shopping Center 27 26 0 0 53
16 Thornton Ave. Sites (within Old Town
Specific Plan boundary)
41 41 40 40 162
17 Cedar Blvd. and Timber St. Industrial Sites 0 0 0 61 61 18 E-Z 8 Motel 39 38 0 0 77
19 Cherry Plaza 15 15 0 0 30
20 Thornton Ave. Sites (outside of Old Town
Specific Plan boundary)
18 18 18 17 71
21 Sycamore St. Vacant Lot 25 25 24 0 74
22 Cedar Blvd. Public Storage Sites 0 0 0 41 41
23 Filbert Villas - 37243 & 37257 Filbert St.
(expired entitlement)
0 0 0 16 16
24 Filbert Ave. Sites 0 0 0 7 7
25 Mayhews Place - 36589 Newark Boulevard
(expired entitlement)
0 0 0 9 9
26 Locust St. & Railroad - 37093 Locust St.
(expired entitlement)
0 0 0 6 6
27 Fahmy Homes - 37503 & 37511 Cherry
Street (expired entitlement)
0 0 0 6 6
28 Neighborhood Infill Lots 0 0 0 17 17
Accessory Dwelling Units (ADUs) 48 48 48 16 160
Middle Housing Units 0 0 200 0 200
Subtotal Sites Zoned for Housing 249 229 348 771 1,597
Total Capacity 523 295 374 1,662 2,854
Newark RHNA 464 268 318 824 1,874
Surplus % 113% 110% 118% 202% 152%
Surplus Units 59 27 56 838 980
Source: City of Newark; Community Planning Collaborative, 2023.
APPENDIX C HOUSING SITES C-6
NEWARK GENERAL PLAN HOUSING
Table C-2: City of Newark Sites Inventory with APNs and Acreage # Name APN Acreage
GP Land
Use Zoning
Income Level
Total
Units
Very
Low Low Mod.
Above
Mod.
Planned and Proposed Projects
1 Bridgeway /
Gateway
assorted n/a LDR, MDR BTP 0 0 0 134 134
2 FMC Willow -
North
92-100-5 7.21 TS, R BTP 47 23 21 64 155
3 FMC Willow -
South
537-852-1-8 12.67 HDR, O, TS BTP 0 0 0 215 215
4 Harbor Pointe 537-852-1-3 1.71 HDR, O BTP 0 0 0 192 192 537-852-2-9 2.29
537-852-2-16 15.70
5 Cedar Homes 92A-2375-2-6 7.16 MDR RM 0 0 0 118 118
6 Cedar
Community
Apts.
901-195-38 1.36 CC CC 124 0 0 1 125
901-195-37 1.36
7 Timber St.
Senior Living
92A-2125-10-2 1.04 MDR RM 39 39 1 0 79
8 Lepakshi Homes
- Building A
92-30-17-2 0.17 CMU CMU 0 0 0 60 60
92-30-16-2 0.17
92-30-18-4 0.31
92-30-14-3 0.19
92-30-15-2 0.17
9 Lepakshi Homes
- Building B
92-31-16-2 0.17 CMU CMU 8 4 3 13 28
92-31-15 0.08
10 SAHA
DevelopmentThornton Ave.
92A-919-17-2 0.18 HDR RH 56 0 1 0 57
92A-919-16-2 0.18
92A-919-18 0.20
11 Mulberry St.
Residential
92-29-22 0.23 MDR RM
0 0 0 8 8
92-29-21 0.23
APPENDIX C HOUSING SITES C-7
NEWARK GENERAL PLAN HOUSING
# Name APN Acreage
GP Land
Use Zoning
Income Level
Total
Units
Very
Low Low Mod.
Above
Mod.
12 Bain Ave. &
Magnolia St.
92-61-11 0.43 MDR RM 0 0 0 10 10
92-61-12-2 0.36
92-61-12-1 0.14
13 Waymark
Homes
92A-2585-12-1 0.83 MDR RM 0 0 0 76 76
92A-2585-30-4 0.35
92A-2585-31 2.62
Subtotal Planned and
Proposed
274 66 26 891 1,257
Sites Zoned for Housing
14 NewPark Mall
(Phases A to D)
901-111-19 9.71 Mixeduse I
RC 36 18 18 535 607
901-111-24 7.89
901-111-30 0.82
901-111-21 4.34
901-111-24 1.21
901-111-22 6.24
901-111-31 3.30
901-111-26 5.64
901-111-26 1.54
901-111-20 7.42
901-111-26 0.64
901-111-29 1.03
901-111-25 14.71
15 Grocery Outlet
Shopping Center
92A-900-1-2 4.62 CMU CMU 27 26 0 0 53
16 Thornton Ave.
Sites (within Old
Town Specific
Plan boundary)
92-50-1-3 0.13 CMU CMU 41 41 41 41 162
92-29-20-2 0.34
APPENDIX C HOUSING SITES C-8
NEWARK GENERAL PLAN HOUSING
# Name APN Acreage
GP Land
Use Zoning
Income Level
Total
Units
Very
Low Low Mod.
Above
Mod.
92-29-16-2 0.17
92-29-15-2 0.09
92-50-2-3 0.13
92-29-19-2 0.17
92-29-18-2 0.17
92-51-5-3 0.50
92-50-3-3 0.13
92-29-14-2 0.08
92-29-17-2 0.17
92-29-13 0.16
92-51-2-3 0.27
17 Cedar Blvd. and
Timber St.
Industrial Sites
92A-2125-17 1.00 MDR RM 0 0 0 61 61
92A-2125-11-2 1.67
92A-2125-13 2.00
18 E-Z 8 Motel 92A-2585-32 2.24 HDR RH 39 38 0 0 77
19 Cherry Plaza 92-50-13 0.96 CMU CMU 15 15 0 0 30
20 Thornton Ave.
Sites (outside of
Old Town
Specific Plan
boundary)
92A-919-20-2 0.24 RHD RH 18 18 18 17 71
92A-919-11-2 0.21
92A-919-15-2 0.16
92A-919-13-2 0.19
92A-919-21-2 0.24
92A-919-12-2 0.16
92A-919-22-2 0.24
92A-919-14-2 0.21
92A-919-19-2 0.19
APPENDIX C HOUSING SITES C-9
NEWARK GENERAL PLAN HOUSING
# Name APN Acreage
GP Land
Use Zoning
Income Level
Total
Units
Very
Low Low Mod.
Above
Mod.
21 Sycamore St.
Vacant Lot
92-255-11 1.81 RHD RH 25 25 24 0 74
22 Cedar Blvd.
Public Storage
Sites
92A-2375-32 1.44 RMD RM 0 0 0 41 41
92A-2375-32 1.46
23 Filbert St. Villas 92-131-3 0.17 RMD RM 0 0 0 16 16
92-54-4 0.18
92-54-5 0.21
24 Filbert Ave. Sites 92-54-6 0.31 RMD RM 0 0 0 7 7
92A-623-43 0.52
92-125-10 0.43
25 Mayhews Place 92A-623-43 0.52 LMDR MDR 0 0 0 9 9
26 Locust &
Railroad
92-125-10 0.43 LMDR RS 0 0 0 6 6
27 Fahmy Homes 92-75-5-2 0.18 MDR RM 0 0 0 6 6
92-75-4-2 0.20
28 Neighborhood
Infill Lots
92-135-23 0.19 LDR RS 0 0 0 17 17
92-127-13 0.17
92-136-15 0.14
92-24-10 0.17
92-127-20 0.43
92-125-2-2 0.42
Accessory
Dwelling Units
(ADUs)
n/a n/a 48 48 48 16 160
Middle Housing
Units
n/a n/a 0 0 200 0 200
Subtotal Sites Zoned
for Housing
249 229 348 771 1,597
Total Capacity 523 295 374 1,662 2,854
APPENDIX C HOUSING SITES C-10
NEWARK GENERAL PLAN HOUSING
# Name APN Acreage
GP Land
Use Zoning
Income Level
Total
Units
Very
Low Low Mod.
Above
Mod.
Newark RHNA 464 268 318 824 1,874
Surplus % 113% 110% 118% 202% 152%
Surplus Units 59 27 56 838 980
Source: City of Newark; Community Planning Collaborative, 2023.
Site Selection Process
The following is a summary of the overall sites inventory process and the methodology and assumptions that support the sites selection process. Using guidance provided by HCD, an inventory of available sites was conducted by closely examining site characteristics and other HCD-established criteria. Primarily, sites were identified by using Geographic Information Systems (GIS) mapping software from multiple datasets to identify parcels that fit the HCD-specified criteria as adequate housing sites. Sites were further refined over a series of working sessions and through input staff, the City Council and community and development sector stakeholders through the community engagement process. The information used to generate the sites inventory database was derived from these primary resources:
1. ABAG’s Housing Element Site Selection (HESS) Tool;
2. City of Newark current and long-term planning records and planning documents;
3. County of Alameda assessor’s data.
Housing sites identified as part of the site inventory analysis were evaluated using a variety of criteria to determine their ability to meet State requirements and meet the City’s RHNA, plus a buffer. The following sections describe the screening criteria and methodology applied for the site selection process. Once all sites had been selected and verified, the realistic density assumption was informed by and calculated from precedent projects in Newark, as well as from regional data provided by ABAG through the HESS tool realistic capacity module.
Methodology/Evaluation of Possible Sites
To meet the City’s RHNA requirement, three primary project types are identified in the sites inventory, as described below. The methodology and assumptions that support these project types are summarized in the “General Site Evaluation Considerations” and “Sites for Rezoning” sections.
APPENDIX C HOUSING SITES C-11
NEWARK GENERAL PLAN HOUSING
Planned and Proposed/Pipeline Projects
Pipeline Projects include those that have been approved, permitted, or received a final certificate of occupancy since the beginning of the RHNA projection period (which started on June 30, 2022). Based on HCD guidance, these projects may be credited toward meeting the RHNA allocation based on the affordability and unit count of the development. The following is a description of the subcategories under Pipeline Projects:
Approved/Under Construction: These projects include those that have been approved or are under construction and will receive a final certificate of occupancy after the beginning of the RHNA projection period, making these projects eligible to be counted towards the 6th cycle RHNA.
Proposed Projects: These are projects that are seeking entitlements. Project status includes formal applications or pre-applications under review, master plans with development agreements approved or under review (only those portions realistically expected to start construction by 2031), and sites owned by 100 percent affordable housing developers with the intent to submit applications in the next year.
Permits or certificates of occupancy for these Proposed Projects are expected to be issued in the 6th cycle, making these projects eligible to be counted towards the 6th cycle RHNA as well.
Project Status and Barriers to Development
The City expects to accommodate a significant percentage of its RHNA through planned and proposed projects. Currently, there are 13 projects which are in various stages of the development process and are expected to provide 1,257 units, 340 of which are lower income. One project, Cedar Community Apartments, has been completed and has provided 124 units of very low income housing. Three of the projects are in the construction phase, six are entitled, and three are active applications. Newark continues to see strong demand in multifamily housing as indicated by these planned and proposed projects and development trends from the previous planning cycle.
The following table (C-3), provides an overview of the different projects, potential barriers, likelihood of development within the planning period, and expected completion date. While numerous factors affect a project’s completion, many of which are outside of the purview of the City, all of the projects are likely to be completed within RHNA 6 planning period. Six of the thirteen projects have known barriers identified by the city, the most common being that building permits must be approved or a request for an entitlement extension must be submitted. The City is closely monitoring the progress of each of these projects and is in contact with applicants to provide guidance on how to keep project progress moving forward.
APPENDIX C HOUSING SITES C-12
NEWARK GENERAL PLAN HOUSING
Table C-3: Planned and Proposed Sites with Project Status Site Name
Development
Stage
Remaining Steps
in Entitlement
Process
Known Barriers to
Developmentin Planning
Period
Likelihood of
Development
in Planning
Period
Expected
Completion
Income Level
Total
Units
Very
Low
Low Mod.
Above
Mod.
1 Bridgeway
/ Gateway
under
construction
none none Likely 2024 0 0 0 134 134
2 FMC
Willow -
North
(Parcel C)
entitled none none Likely Building
permits
issued late
2024;
construction
complete in
2026
47 23 21 64 155
3 FMC
Willow -
South
entitled none none Likely Building
permits
issued late
2024;
construction
complete in
2026
0 0 0 215 215
4 Harbor
Pointe
under
construction
none none Likely 2024 0 0 0 192 192
5 Cedar
Homes38478
Cedar
Boulevard
entitled none Clearance required for
underground leakage
from applicable agencies
prior to grading permit
issuance.
Building permit approval
or entitlement extension
required by May 25,
2025.
Likely Building
permits
issued
mid-2024;
construction
complete late
2025.
0 0 0 118 118
APPENDIX C HOUSING SITES C-13
NEWARK GENERAL PLAN HOUSING
Site Name
Development
Stage
Remaining Steps
in Entitlement
Process
Known Barriers to
Developmentin Planning
Period
Likelihood of
Development
in Planning
Period
Expected
Completion
Income Level
Total
Units
Very
Low
Low Mod.
Above
Mod.
6 Cedar
Community
Apts.
complete none none Complete 2023
124 0 0 1 125
7 Timber St.
Senior
Living
entitled none Construction closing
process must be complete
and construction started
by February 19, 2024 as
required by
TCAC/CDLAC.
Building permit approval
or request for entitlement
extension required by
October 28, 2024.
Likely Building
permits
issued Q1
2024;
construction
complete by
late 2025.
39 39 1 0 79
8 Lepakshi
Homes -
Building A,
6781
Thornton
Ave.
active
application
Completeness
determination;
CEQA review;
Planning
Commission and
City Council
review.
Visibility triangle
requirements for corner
lots must be met.
Main water line
adjustment needs to be
complete and new fire
hydrants need to be
added.
Likely Entitlements
issued by mid
2024;
building
permits
issued late
2024;
construction
complete by
mid-2026.
0 0 0 60 60
9 Lepakshi
Homes -
Building B,
6781
Thornton
Ave.
active
application
Completeness
determination;CE
QA review;
review; Planning
Commission and
City Council
review
None Likely Entitlements
issued by mid
2024;
building
permits
issued late
2024;
8 4 3 13 28
APPENDIX C HOUSING SITES C-14
NEWARK GENERAL PLAN HOUSING
Site Name
Development
Stage
Remaining Steps
in Entitlement
Process
Known Barriers to
Developmentin Planning
Period
Likelihood of
Development
in Planning
Period
Expected
Completion
Income Level
Total
Units
Very
Low
Low Mod.
Above
Mod.
construction
complete by
mid-2026.
10 SAHA
Developme
nt- 6347
-6375
Thornton
Ave.
active
application
Completeness
determination,
CEQA, public
hearings
Entitlement application
needed which is expected
in November 2023.
Likely Entitlements
issued in
2024;
construction
complete in
2026
56 0 1 0 57
11 Mulberry
Residential
36952
Mulberry
Street
entitled none Construction drawings
required which may be
delayed due to high
interest rates.
Building permit approval
or request for entitlement
extension required by
June 22, 2025.
Likely Building
permits
issued late
2024;
construction
complete in
early 2026
0 0 0 8 8
12 Bain Ave. &
Magnolia
St. - 37280
Magnolia
Street
under
construction
none none Likely 2023
0 0 0 10 10
APPENDIX C HOUSING SITES C-15
NEWARK GENERAL PLAN HOUSING
Site Name
Development
Stage
Remaining Steps
in Entitlement
Process
Known Barriers to
Developmentin Planning
Period
Likelihood of
Development
in Planning
Period
Expected
Completion
Income Level
Total
Units
Very
Low
Low Mod.
Above
Mod.
13 Waymark
Homes -
Cedar Blvd
entitled none Closing of sale on City
property must be
complete by January 12,
2024 per the Purchase &
Sale Agreement.
Building permit approval
or request for entitlement
extension required by
September 14, 2025.
Likely Building
permits
issued 2024;
construction
complete late
2026
0 0 0 76 76
Subtotal Planned
and Proposed
274 66 26 891 1,257
APPENDIX C HOUSING SITES C-16
NEWARK GENERAL PLAN HOUSING
Sites Zoned for Housing
Sites zoned for housing comprise the second main type of site to accommodate the City’s RHNA, including both vacant and non-vacant sites with available infrastructure and that meet a variety of criteria that make them candidates for residential development during the 6 th cycle planning period. These sites are
considered vacant or underutilized and are eligible for residential development as is currently allowed under the existing zoning in the General Plan or in one of the City’s adopted specific plans.
Accessory Dwelling Units and SB 9 Units
Accessory Dwelling Units are considered opportunities for residential development and are based on projected development during the planning period as is currently allowed under the existing zoning or General Plan. The sites inventory provided in Table C-1 assumes that Newark will continue to approve on the order of 15 units per year
15 . In addition, it is anticipated that homeowners in Newark will begin to take advantage of the opportunities to add additional housing units through the addition of new units on existing residential lots or through urban lot splits as provided in SB 9. 16 16 https://www.hcd.ca.gov/docs/planning-and-community-development/SB9FactSheet.pdf 15 The affordability levels assumed by Newark in the sites inventory for ADU production is supported by research conducted for ABAG’s RHTA program and is based on a robust statewide survey of ADUs by affordability level. https://abag.ca.gov/sites/default/files/documents/2022-03/ADUs-Projections-Memo-final.pdf APPENDIX C HOUSING SITES C-17
NEWARK GENERAL PLAN HOUSING
General Site Evaluation Considerations
This section provides a summary of the evaluation considerations made as part of the analysis and a description of each consideration. As most of the city is already built with limited vacant parcels remaining, sites in the inventory primarily include non-vacant parcels that already have access to infrastructure and meet a variety of HCD criteria that make them suitable candidates for housing redevelopment. While sites not included in the sites inventory can also be developed for housing to meet RHNA targets, those sites identified in the inventory are considered optimal and most likely to develop and contribute to housing production in the 6th cycle. The following considerations were evaluated and are described in more detail in the following sections:
● Infrastructure Availability;
● Environmental Constraints;
● Site Status and Capacity (i.e., vacant, underutilized, existing uses, and residential zoning); ● Site Size;
● Permitted Density; and
● Evaluating Sites from Prior Housing Element(s).
Infrastructure Availability
The availability of utility infrastructure to a site can be a constraint to housing development and was considered as an evaluation criterion when working to identify sites for the inventory. As a primarily developed community, the City of Newark is well-served by existing infrastructure systems, including both wet and dry utilities. As much of Newark already has available or nearby access to water and wastewater services, wet utilities are not a constraint to residential development though minor upgrades to these services (e.g., expanded sewer and water hookups to the trunk line) may be needed to develop select sites for residential uses. All sites have been screened to have available infrastructure.
Environmental Constraints
The analysis of environmental constraints included a review of all parcels identified in the inventory using different GIS-based data screens as well as ABAG’s HESS tool to determine if sites possess one or more environmental constraint, including hazard risks such as parcel shapes, flood zones or wetlands, easements, contamination, steep slopes, and other possible constraints to development feasibility. Two sites, both in the construction phase, Bridgeway/Gateway and Harbor Pointe have floodplain exposure, which was mitigated during the entitlement process. None of the sites in the inventory, either planned or proposed or zoned for housing, have irregular shapes, or are impacted by either wetlands or critical habitat.
The sites zoned for housing in the sites inventory are located in urbanized areas of the City and do not have special hazard risks or significant environmental challenges. However, some of the sites zoned for housing have current or former industrial uses which may need contamination mitigation. Additional regulatory constraints or mitigation efforts have not been an issue for the projects that have been entitled or are in the entitlement process (for example, Waymark Homes and Timber St. Senior Living) in this APPENDIX C HOUSING SITES C-18
NEWARK GENERAL PLAN HOUSING
formerly industrial/warehouse area. For instance, the Environmental Impact Report for the Bayside Newark Specific Area Plan, an area that had considerable previous industrial contamination, outlines and addresses contamination and other environmental concerns which has led the way for significant housing construction. Where siting housing on parcels with environmental constraints may be unavoidable to accommodate the City’s housing need, risks would be addressed through building codes and other mitigation measures.
Site Status and Capacity
Sites in Newark which are zoned to accommodate housing include vacant and nonvacant sites in the zoning districts summarized in Section 4A. Residentially zoned sites, either vacant or underutilized, were considered as potential buildable residential sites and were evaluated for site adequacy and capacity.
Government Code Sections 65583(a)(3) and 65583.2 require that the inventory of suitable land look at criteria for vacant and underutilized sites as outlined below:
● Vacant sites that are zoned for multi-family development ● Vacant sites that are not zoned for multi-family development, but that allow such development ● Underutilized sites that are zoned for residential development and capable of being developed at a higher density or with greater intensity
● Sites that are not zoned for residential development, but can be redeveloped for and/or rezoned for multi-family residential development
● Sites owned or leased by the City that can be redeveloped for multi-family residential development within the housing cycle
● Sites controlled by the State, a city/county, or another public agency where there is agreement/documentation that the site can be developed within the housing cycle ● Non-vacant sites require substantial evidence to demonstrate that existing development will not preclude housing production during the planning period
A methodology to determine “underutilized” sites was necessary given that the City has shrinking supply of vacant land. Sites were removed from consideration in the underutilized methodology if sites: did not initially allow residential uses, were historic resources, were sites that support community-serving uses (parks, utilities, transportation, schools, hospitals), had structures that were recently built or modified, and were generally built out to their allowed density.
Sites owned by the City and other public agencies were also evaluated for affordable housing development, but none were identified as suitable at this time.
Site Size
Per State law, sites smaller than half an acre or larger than 10 acres are not considered adequate to accommodate lower income housing needs unless it can be demonstrated that sites of equivalent size were successfully developed during prior planning periods, or other evidence is provided that sites at this size can be developed as lower income housing.
APPENDIX C HOUSING SITES C-19
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Large Sites – There are no individual sites in the inventory larger than 10 acres (with the exception of one parcel within the NewPark Place Specific Plan Area which is 14.7 acres).
Small Sites – The sites inventory includes parcels that are less than or slightly greater than one-half acre in size. A screening of these smaller parcels and common ownership was conducted. Where smaller parcels were immediately adjacent to other Opportunity Sites that had the same landowner, these parcels were consolidated to create larger sites, given the likelihood of these consolidated sites being developed together as a single project (the SAHA Thornton Avenue project falls in this category). Recent proposals and projects underway confirm trends toward lot consolidation in Newark. Sites 8-13 are all recent examples of projects where lot consolidation is happening, entitlements have been issued (Sites 11 and 13) or are under review (Sites 8-10), and in some cases, construction is progressing (Site 12). In addition, interviews with the owners of Site 23 and 27, which have expired entitlements, confirm continued interest in parcel assembly (Site 23 has already been assembled) and development and do not indicate that lot consolidation is a barrier to development. In combination with Program 2.11, which will provide incentives for lot consolidation, conditions for the potential development of small parcels in Newark are promising. A full list of these and other sites is included in the sites inventory form to be prepared for submission to HCD for review.
Permitted Density
State law (Government Code Section 65583.2(c)(3)) establishes a “default density standard” of 30 units per acre for lower income units in a metropolitan jurisdiction such as Newark. This is the minimum density that is deemed appropriate in State law to accommodate the City’s lower income RHNA. In accordance with the State’s default density standards, sites that could support a minimum of 30 units per acre were considered appropriate for very low and low income units, as well as for moderate income units. All underutilized Opportunity Sites in the inventory can accommodate at least the default density.
Evaluating Sites from Prior Housing Element(s)
To accommodate the 2023-2031 RHNA, sites from both the 4th and 5th cycle housing elements were evaluated to determine their viability for the 2023-2031 Housing Element planning period. As reflected in Program H3.6 and Table 6-2, the city has identified all parcels that need to be rezoned to accommodate RHNA during the planning period. Specifically, by January 31, 2024, Newark will implement zoning text amendments to provide adequate capacity for up to 602 units. This program will provide for a minimum density of 30 DU/A for sites to accommodate lower income RHNA units. The City will incorporate a replacement housing provision for any sites with existing residential use and will permit multifamily uses without discretionary action.
Pursuant to AB 1397, Newark will also amend the Zoning Ordinance to require by-right approval of housing development that includes 20 percent of the units as housing affordable to lower-income households, on sites being used to meet the 6th Cycle RHNA that represent “reuse sites” previously identified in the 4th and 5th Cycles Housing Element. The ten sites listed in Table 6-2 will be adjusted by text amendment to accommodate the lower income RHNA as needed.
Sites for Rezoning
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NEWARK GENERAL PLAN HOUSING
Government Code section 65583.2(h) sets requirements if sites are identified for rezoning to accommodate a lower income RHNA shortfall. The City’s sites inventory does not have a lower income shortfall, and therefore is not subject to those requirements.
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Realistic Capacity Evaluation - Approach and Methodology As required by Housing Element law, local governments must analyze available sites based on a determination of their realistic residential development capacity. Consistent with this requirement, Newark collected and analyzed data on precedent projects to evaluate the realistic capacity of both vacant sites and non-vacant/underutilized sites in both residential and commercial/mixed-use zones.
Specifically, the typical achieved densities of existing or approved residential development on sites in all zoning districts were analyzed to confirm their realistic capacity to achieve the identified number of housing units for each site by AMI level.
Land Use, Zoning and Development Standards and Realistic Capacity The precedent projects used as reference housing developments for this analysis are subject to the same land use controls and site improvement standards as the sites in the inventory. Local precedent projects were supplemented by sub-regional data provided from the ABAG HESS tool regarding typical achieved densities on projects in the Newark/Tri-City Market Area.
Realistic Capacity in Multifamily-Residential (RM, RH zones) For housing opportunity sites identified in the City’s multi-family residential districts (RM, RH), the realistic capacity assumption applied to total site capacity is 80 percent. This assumption is conservatively set lower than representative projects currently in the City’s development pipeline (see, for example, Site 7 in the below sites inventory, which is being built out at more than 100 percent of the maximum allowed density in the RM zone). This more conservative realistic capacity adjustment factor for sites in the RM and RH zones is also broadly consistent with 357 projects built in the Multi-Family Residential districts of the Tri-City area between 2018 and 2020.
17 Realistic Capacity in Commercial Mixed-Use, Regional Commercial (CMU, RC zones) and Other Non-Residential Zones
Per State Housing Element law, the realistic development capacity calculation for nonresidential, non-vacant, or overlay zoned sites must be adjusted to reflect the realistic potential for residential development capacity on the sites in the inventory. Specifically, when the site has the potential to be developed with non-residential uses, requires redevelopment, or has an overlay zone allowing the underlying zoning to be utilized for residential units, these capacity limits must be reflected in the Housing Element.
For this analysis, Newark has taken into account both recently developed and planned and proposed residential development in Newark as well as data from comparable projects in the Tri-City area obtained from the HESS tool. As detailed in the realistic capacity analyses provided for Sites 14 through 28, factors used to make the adjustment included:
● Local and regional residential development trends in non-residential zoning districts. 17 ABAG HESS tool
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● Local or regional track records, past production trends, and development yields for redeveloping sites or site intensification.
● The likelihood for residential development based on recent precedents, market demand and City efforts to incentivize the development of 100 percent residential development on formerly commercial sites (see, for example, Site 14 Newpark Place, which contemplates new residential development on several sites that were formerly commercial).
Market data provided by the HESS tool identified 128 project(s) built in the non-residential districts of the Alameda South County/Tri-Cities Area between 2018 and 2020. The average number of units built as a percentage of the maximum allowable units on these sites was 130 percent. However, due to ground floor retail requirements and the experience of comparable pipeline projects, a more conservative feasibility multiplier of 80 percent was used in the sites inventory analysis to reflect local conditions in Newark, and also to take into account the unlikely event that commercial-only development would occur on these sites, despite recent development trends.
Development Trends in Commercial and Mixed-Use Zones
As noted, precedent projects were evaluated to determine the likely density of 100 percent residential development in each of the zones that permit housing in Newark. In general, throughout Newark and the larger Tri-City market area, residential uses have been outcompeting retail and office uses, and the overwhelming trend has been towards the conversion of existing commercial centers. The NewPark Place Specific Plan reflects this trend in that there is a planned downsizing of the commercial retail portions of the existing center in favor of higher density residential product types.
During the fifth cycle RHNA planning period, only five (5) non-residential commercial projects were developed on commercial or mixed-use sites in Newark. Specifically, these 100 percent commercial uses consisted of the following projects: three hotels developed on commercial and mixed-use sites; a new restaurant replacing an existing restaurant in a commercial zone; and, a Costco retail warehouse replacing existing commercial uses in the NewPark Place Specific Plan Area resulting in a net decrease in commercial floor area.
This Limited commercial development occurred in the context of over 30 residential development projects that were approved during the same time frame in residential and specific plan areas, representing thousands of new units. In addition, the City receives regular inquiries from developers interested in developing housing on existing commercial land, reflecting the strong trend towards the conversion of existing commercial land to residential and mixed-uses. Taking these development trend factors into account, the realistic capacity factor of 80% is extremely conservative in accounting for the limited possibility that future development on these sites may be 100% non-residential.
Overall Planning and Development Context for Residential Development in Formerly Non-Residential Areas
Newark has a history of reimagining underutilized sites for new housing development. As described in Section 4, Section A (Housing Constraints, Governmental Constraints) Newark has adopted specific plans in important transitional areas of the City that can accommodate a variety of uses, including residential APPENDIX C HOUSING SITES C-23
NEWARK GENERAL PLAN HOUSING
uses:
● Bayside Newark Specific Plan (formally known as the Dumbarton TOD Specific Plan) an area of over 200 acres that contained various industrial, manufacturing, chemical processing, and salt production facilities. Extensive environmental and hazardous materials remediation has been completed to allow the construction of dense single-family and multiple-family residential buildings. As of 2023, over 2,000 units have been approved, built, and/or are in a phase of construction.
● Old Town Specific Plan, an area of 76 acres representing some of Newark’s oldest neighborhoods.
The specific plan’s vision is the development of this corridor into a mixed-use area that accommodates a range of housing types, retail and service businesses, expanded public spaces, and mobility improvement. Through zoning amendments,streetscape improvements, and public and private investments, the plan envisions Old Town Newark as a revitalized mixed-use neighborhood with a strong sense of place. The specific plan envisions approximately 400 net-new residential units to be located within the specific Plan area. ● NewPark Place Specific Plan provides a comprehensive planning and development implementation strategy for a 125-acre area in the southeastern portion of the city adjacent to I-880, which includes the existing NewPark Mall retail center (mall), the parking facilities that surround it, and commercial uses on the perimeter of the center. Thisspecific plan envisions over 1,500 residential units located in the existing shopping malls surface parking area. Residential uses are permitted uses within these surface parking areas; conditional use permits are not required.
In addition to adopting specific plans, the city has rezoned other areas of the city from commercial and industrial uses to residential uses. For example, through various zoning amendments and project entitlements, the light industrial neighborhood on the eastside of Cedar Boulevard between Central Avenue and Mowry Avenue is transforming into a dense urban neighborhood. Since 2014, over 700 residential units have been approved or constructed within this area.
Newark has consistently approved residential development on lands that have transitioned from industrial and other uses into high-quality residential neighborhoods, resulting in the production of thousands of units. This development is in addition to residential development on lands identified in the general plan and in zoning districts specifically for residential uses. Residential development is expected to continue, especially in areas where mixed-uses are allowed, based upon the implantation of housing element policies and State legislation that remove barriers to residential development on commercial and mixed-use sites.
Policies and Programs Incentivizing Residential Development in Commercial and Mixed Use Area
This above realistic capacity analysis is further supported by a range of policies and programs that the City has committed to implementing during the planning period. These policies include, but are not limited to, the following:
PROGRAM H2.3: Investigate Opportunities in the Four Corners Area to facilitate market-rate and affordable housing and promote neighborhood revitalization through increased mixed use development APPENDIX C HOUSING SITES C-24
NEWARK GENERAL PLAN HOUSING
and walkability.
POLICY H2.4: Work with community partners and property owners to revisit a community visioning plan for the Four Corners neighborhood/community commercial area.
PROGRAM H3.4: Adjust Zoning to Allow Mixed Use in Current Commercial Zones PROGRAM H4.10: Zoning Ordinance Amendments for Special Needs Housing In order to support an increase in this housing type in the city, SROs will be permitted use in Residential Medium Density, Commercial Mixed Use and Residential High Density zones, with a priority for SRO development to occur along transit corridors.
To align zoning with planned development areas and associated policies of developing pedestrian friendly, walkable neighborhoods, the city proposes to implement State laws SB6 and AB 2011 to encourage residential and mixed-use developments in current commercial zones.
APPENDIX C HOUSING SITES C-25
NEWARK GENERAL PLAN HOUSING
Evaluation of Sites to Accommodate Varied Income Levels One of the most important evaluation considerations of the sites selection process is to evaluate a site’s ability to accommodate households with varying income levels. To satisfy the RHNA requirement, the amount of lower, moderate, and above moderate income units is specified for each site in the inventory.
Furthermore, the unit capacity must be maintained throughout the 2023-2031 planning period.
Therefore, a buffer of at least 15 percent to 30 percent is generally recommended by HCD, and Newark’s sites inventory buffer is well beyond this recommendation. If sites listed in the inventory are redeveloped with other uses or different income levels than what is identified, the difference can be made up with the buffer sites to ensure there is “No Net Loss” of Suitability of Non-Vacant Sites.
Suitability of Non-Vacant Sites for Development
The lack of vacant land in Newark and the relatively high value of new residential development means that the City consistently sees the redevelopment of underutilized sites, a fact which is reflected most notably in the adoption and ongoing implementation of the Newpark Place Specific Plan. Developer and property interest in non-vacant commercial sites for future residential development has been strong in recent years, and the inventory included here is, by many measures, relatively conservative in terms of the number of non-vacant commercial sites included relative to market pressures.
Non-vacant opportunity sites in the inventory were screened based on the criteria previously described.
The consultant team worked closely with city staff to identify suitable properties and analyze existing uses and the conditions of buildings or lots on non-vacant sites. Property owner outreach was also conducted for the relevant sites, as well as analysis on constraints and market conditions. In each case, the analysis indicated that the opportunity sites included in this Housing Element Have a strong likelihood of developing as residential projects during the planning period.
Lower Income RHNA vis-a-vis Non Vacant Sites
State law requires additional analysis of existing uses in the sites inventory if more than 50 percent of the City’s low-income RHNA is accommodated on non-vacant sites. HCD has published guidance for how to determine this, which includes adjustments for proposed lower income projects and ADU capacity, in addition to vacant sites in the inventory. A substantial amount of the City’s lower-income units (more than 50 percent of the lower income RHNA) are within Pipeline Projects. In addition, the inventory includes affordable ADU units. In summary, less than 34 percent of Newark’s lower income RHNA is accommodated on non-vacant sites, which is below the 50 percent threshold. Therefore, no additional analysis is needed to support the site inventory’s non-vacant sites.
APPENDIX C HOUSING SITES C-26
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Table C-4: Lower Income RHNA vis-a-vis Non Vacant Sites, 2023 Site Location
Lower Income
Units
Percent of Lower
Income RHNA
Planned and Proposed Sites 340 46.4%
Vacant Sites (Sycamore St.) 50 6.8%
ADUs 96 13.1%
Total Lower Income RHNA 732 100%
Lower Income RHNA vis-a-vis Non Vacant Sites 246 33.6%
Site Profiles
The following site profiles provide specific information about each of the opportunity sites listed in Table C-1 and displayed vis-v-vis AFFH factors in the maps provided above. The sites include both planned and proposed projects as well as sites zoned for housing that will be available to be developed during the planning period. Each profile includes a description of the site’s general plan land use designation, zoning, site size and maximum allowable density. Notes regarding realistic capacity are included as well as available links to relevant planning documents and plans. Sites 1 through 13 are in the development pipeline process (either under construction, fully entitled or active applications) and sites 14 through 28 are locations identified for housing either from previous Housing Elements or new analysis. Sites identified as zoned for housing include detailed analyses of development standards, government constraints and environmental constraints. Tables summarizing development standards and unit yield are provided for sites 15 through 19, 21, 22, 24, and 25.
APPENDIX C HOUSING SITES C-27
NEWARK GENERAL PLAN HOUSING
1 Bridgeway / Gateway (Bayside Newark) - under construction Zoning: Residential High Density, Residential
Medium Density
Specific Plan Designation: Medium/High
Density Residential
APNs: Consolidated sites with APNs to be listed
in the HCD electronic inventory form.
Size: 41 acres
Max Allowable Density 60 units per acre.
Realistic capacity based on approved entitlements or
developer proposal
On March 10, 2016, Newark City Council adopted Ordinance No. 492 which was a zoning amendment on property shown in Vesting Tentative Tract Map 8099 from MT-1 (High
Technology Park District) to MDR-FBC (Medium Density
Residential-Form Based Codes) and HDR-FBC (High Density Residential-Form Based Codes) as part of the Bayside Newark (formerly known as the Dunbarton TOD Specific Plan) to
develop the land as Gateway Station West.
The project, proposed by Integral Communities, calls for the phased development of 589 market-rate residential units within approximately 41 acres of the 54.5-acre project site, at an approximately density of 14.36 DU/A. A total of 321 single family detached homes and 268 attached condos are planned, along with streets, 1,473 parking spaces, sidewalks, trails, landscaping, parks, water quality treatment basins and
permanent open space. In addition, several off-site roadway, sidewalk and landscaping improvements may be constructed in conjunction with the project. The development site is located within the Dumbarton TOD Specific Plan Project area.
APPENDIX C HOUSING SITES C-28
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES C-29
2 FMC Willow - North (Bayside Newark) - entitled
Zoning: Business and Technology Park
Specific Plan Designation: Transit Station,
Commercial/Retail
APN: 92-100-5
Size: 7.2 acres
Max Allowable Density: Form-based code
Realistic capacity based on approved entitlements or
developer proposal
On 9/22/22, The City of Newark approved land use
modifications proposed by Lennar Home Builder, FMC
Corporation, and Integral Communities within the FMC
Willow and Grand Park portion of the Bayside Newark
Specific Plan area. The proposed modifications would
redevelop the 22.1-acre site into a 370-unit multi-family community including 279 townhouse units, a 1.6-acre
mixed-use area with 3,600 sq. ft. of retail, club room, fitness center, and 90 affordable units (plus 1 manager unit) within a 6-story building, a 5-acre community park (Grand Park), and a 1,485 sq. ft. community building, along with approx. 1.8 acres set aside for a future transit station.
The north site, known as FMC Willow - North” would contain the 91-unit affordable housing, mixed-use building, 64
multifamily units and the future transit station parcel for a total of 155 units. The 64 market-rate units would be UA Stack (multifamily). The UA Stacks would have five floor plans ranging from 1,696 square feet to 2,015 square feet, and they would be three-stories high.
Link to approved Application (Resolution No. 11,407)
Link to FMC Willow Staff Report
NEWARK GENERAL PLAN HOUSING
3 FMC Willow - South (Bayside Newark) - entitled
Zoning: Business and Technology Park
Specific Plan Designation: High Density
Residential, Commercial Office, Transit Station
APN: 537-852-1-8
Size: 12.6 acres
Max Allowable Density 60 units per acre.
Realistic capacity based on approved entitlements or
developer proposal
On 9/22/22, The City of Newark approved land use
modifications proposed by Lennar Home Builder, FMC
Corporation, and Integral Communities within the FMC
Willow and Grand Park portion of the Bayside Newark
Specific Plan area. The proposed modifications would
redevelop the 22.1-acre site into a 370-unit multi-family community including 279 townhouse units, a 1.6-acre
mixed-use area with 3,600 sq. ft. of retail, club room, fitness center, and 90 affordable units (plus 1 manager unit) within a 6-story building, a 5-acre community park (Grand Park), and a 1,485 sq. ft. community building, along with approx. 1.8 acres set aside for a future transit station.
The South Site of the project, known as “FMC Willow South”, (Grand Park, PA 3, and PA 4) would include a 1,485 square foot community building, 123 multifamily units, and 92
townhomes for a total of 215 units. The 123 units would be UA Split (multifamily), and 92 would be UA Towns
(townhomes). The UA Stacks would have 5 floorplans ranging from 1,696 square feet to 2,015 square feet. The UA Splits would have a standard option with 4 floorplans ranging from 1,307 square feet to 2,108 square feet and a 4-story option with 4 floorplans ranging from 1,307 square feet to 2,422 square feet. The homes would be 3-5 stories high.
Link to project plans.
APPENDIX C HOUSING SITES C-30
NEWARK GENERAL PLAN HOUSING
4 Harbor Pointe, FMC Parcel C (Bayside Newark) - under construction Zoning: Business and Technology Park
Specific Plan Designation: High Density
Residential, Commercial/Office
APN: 537-852-2-9, 537-852-1-3, 537-852-2-16
Size: 13.6 acres
Max Allowable Density 60 units per acre.
Realistic capacity based on approved entitlements or
developer proposal
In line with the Bayside Newark Specific Plan (formerly known as the Dumbarton TOD), the City of Newark approved a title sheet and site plan submitted by Parcel C Project Owner, LLC.
The date on the filing is from 12/17/2018.
The developable area of 13.6 acres was subdivided to
accommodate 192 units over three planning areas. Planning Area 1 has a total 72 units at a density of 11.56 units to the acre, Planning Area 2 has a total of 75 units at 16.13 units per acre, and Planning 3 has a total of 45 units at 16.48 units per acre. The plan has multiple typologies which are both three and four bedroom single family units which will be sold at market rate. The project is being built in phases and multiple final maps may be filed.
Link to project plans.
APPENDIX C HOUSING SITES C-31
NEWARK GENERAL PLAN HOUSING
5 Cedar Homes - 38478 Cedar Boulevard - entitled
Zoning: Residential Medium Density
General Plan Designation: Medium Density
Residential
APN: 92A-2375-2-6
Size: 7.76 acres
Max Allowable Density 30 dwelling units per
acre.
Realistic capacity based on approved entitlements or
developer proposal
According to application materials, Robson Homes, LLC
proposes to construct 118 residential units composed of single family residences and two-unit attached townhomes on a 7.76-acre site located at 38288-38594 Cedar Blvd. The site would be subdivided to create 124 lots including six common and 118 residential lots. The project would include
landscaping and open space areas, a new private street, and on-site and off-site improvements. Below is a rendering of an example unit.
Link to project plans.
APPENDIX C HOUSING SITES C-32
NEWARK GENERAL PLAN HOUSING
6 Cedar Community Apartments - complete
Zoning: Community Commercial
General Plan Designation: Community
Commercial
APN: 901-195-37, 901-195-38
Size: 2.7 acres
Max Allowable Density 25-60 dwelling units per
acre.
Realistic capacity based on approved entitlements or
developer proposal
The Cedar Community Apartments project was selected for a Homekey grant valued at $38.2 million. This grant assisted with the acquisition and conversion of Town Place Suite into 125 apartment units that are affordable to extremely low-income households and households experiencing homelessness,
including 11 units that are reserved for military veterans. The grant also assists with the provision of resident services including education and employment services. 1 unit is at market rate for management.
The owner of the Towne Place Suites (TPS) extended-stay hotel in Newark and Allied Housing/Abode Services entered into an option agreement for the sale of the property. The hotel suites were converted into 124 supportive, affordable residential units to be known as Cedar Community Apartments. 60 units are for households who have experienced homelessness, and the other 64 are set aside for people at risk of homelessness.
APPENDIX C HOUSING SITES C-33
NEWARK GENERAL PLAN HOUSING
7 Timber St. Senior Living - entitled
Zoning: Residential Medium Density
General Plan Designation: Medium Density
Residential
APN: 92A-2125-10-2
Size: 1.0 acre
Max Allowable Density 30 dwelling units per
acre.
Realistic capacity based on approved entitlements or
developer proposal
Timber Street Senior, developed by Eden Housing, will provide 79 units of new affordable housing for seniors in a convenient location in Newark, CA. The project will redevelop the 1-acre site and fulfill the city’s vision of transforming the surrounding neighborhood from light industrial and warehouse space to a vibrant, walkable residential neighborhood.
The project has been granted $21.7 million in funding for its construction with the City of Newark and Alameda County (Measure A1 Affordable Housing Fund) both as financial
partners. The project’s funding is a part of Governor
Newsom’s recent commitment of more than $825 million to help expand the state’s affordable housing stock and increase capacity for additional climate-smart infill housing.
The building will include a community room with a kitchen and attached courtyard with space for planter boxes and
organized activities, a computer learning center, an exercise room, a bicycle storage room, and offices to house on-site services staff. All of the units are 1-bedrooms, so the community will support seniors living on their own as well as couples. A rendering of the project is shown below.
Link to project plans.
APPENDIX C HOUSING SITES C-34
NEWARK GENERAL PLAN HOUSING
8 Lepaskshi Homes - 6781 Thornton Ave. Building A (Old Town Newark Area Plan) - active application
Zoning: CommercialMixed Use
General Plan Designation: Commercial Mixed
Use
APN: 92-30-16-2, 92-30-15-2, 92-30-14-3,
92-30-18-4, 92-30-17-2
Size: 1.0 acres
Max Allowable Density 100 dwelling units per
acre (Old Town Newark Area Plan)
Realistic capacity based on approved entitlements or
developer proposal
The developer, Lepakshi Homes, has proposed a residential project at the gateway to the City’s Old Town neighborhood.
The project consists of two sites with a single building on each site. “ Building A” with 60 market rate units, 12 one-bedroom, 37 two-bedroom, 6 three-bedroom, and 5 live-work units. The proposed plan is approximately 60 units per acre for Building A.Building A’s building height is 57 feet with a clocktower at 72 feet.
As of October 2023, the application is under review. The city anticipates that the application will be complete in early 2024 with public hearings scheduled shortly thereafter.
Entitlements include a Planned Development and Design
Review.
Link to project plans.
APPENDIX C HOUSING SITES C-35
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES C-36
9 Lepakshi Homes - 6781 Thornton Ave. Building B (Old Town Newark Specific Plan) - active application
Zoning: Commercial Mixed-Use
General Plan Designation: Commercial Mixed
Use
APN: 92-31-15, 92-31-16-2
Size: 0.25 acres
Max Allowable Density 100 dwelling units per
acre (Old Town Newark Specific Plan)
Realistic capacity based on approved entitlements or
developer proposal
The developer, Lepakshi Homes, has proposed a residential project at the gateway to the City’s Old Town neighborhood.
The project consists of two sites with a single building on each site. “ Building B” is across the street from Building A and would contain 15 affordable units and 13 market rate units.
The proposed plan is at 94 units per acre, and the building height is 59 feet. Below is a rendering of the project, with Building B in the foreground. The smaller “Building B” parcels are part of the same application and approval process as Building A.
As of October 2023, the application is under review. The city anticipates that the application will be complete in early 2024 with public hearings scheduled shortly thereafter.
Entitlements include Planned Development and Design
Review.
Link to project plans.
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES C-37
10 SAHA - 6347 -6375 Thornton Ave. - active application Zoning: Residential High Density
General Plan Designation: High Density
Residential
APN: 92A-919-18, 92A-919-17-2,
92A-919-16-2
Size: 0.54 acres
Max Allowable Density 60 dwelling units
per acre.
Realistic capacity based on developer proposal
assubmitted to city in NOFA process.
According to application materials, SAHA proposes a
multi-family housing development of 57 deeply affordable homes targeted to individuals and families including 15 twobedroom apartments and 16 three-bedroom apartments, on three underutilized parcels, 6347-6375 Thornton Avenue.
The proposal calls for a single 60 foot. 5-story building on 0.54 acres at 105 DU/A (a waiver or concession is needed).
SAHA proposes to develop a five-story building using Type 5A wood-frame construction for the upper four floors over a Type 1A concrete ground floor and parking garage. The design includes numerous family-friendly common area amenities such as a computer lab, an acoustically-insulated music practice room, a bicycle repair station, building wide wireless internet service free to residents, an outdoor tot play area and wheelchair-accessible raised garden beds in a sunny spot where SAHA’s Resident Services team will expand its
successful gardening program.
To fund this transformation, SAHA requested and received $12M of seed capital from the City of Newark which will cover approximately 25% of the total development cost.
The developer will submit a formal design review, minor use permit, and a map application before the end of 2024.
Entitlements are expected in late 2024.
Link to project plans.
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES C-38
11 Mulberry Residential - 36952 Mulberry Street - entitled Zoning: Residential Medium Density
General Plan Designation: Medium
Density Residential
APN: 92-29-22, 92-29-21
Size: 0.46 acres
Max Allowable Density 30 units per acre.
Realistic capacity based on approved
entitlements or developer proposal
According to application materials, Rajesh Rao, proposes to demolish the existing single-story residence and detached garage, and construct eight for-sale market-rate
condominiums with new landscaping, open space areas, a
private driveway, and guest parking on the property located at 36952 Mulberry St. The property is zoned RM-OT
(Residential Medium Density with the Old Town Overlay
District). The proposed project would merge two existing lots to create a 0.46-acre lot with 4 three-bedroom units and 4 four-bedroom units at a density of 17.4 DU/A. Below is a proposed rendering of the project.
Link to project plans.
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES C-39
12 Bain Ave. & Magnolia St. - 37280 Magnolia Street - under construction Zoning: Residential Medium Density
General Plan Designation: Medium Density
Residential
APN: 92-61-11, 92-61-12-1, 92-61-12-2
Size: 0.93 acres
Max Allowable Density 30 units per acre.
Realistic capacity based on approved entitlements or
developer proposal
According to application materials, Goldsilverisland Homes, LLC is proposing 10 market-rate single family homes at 37280 Magnolia Street. The applicant is also proposing a PD overlay district to allow for lower lot sizes of 3,500 square feet instead of 6,000 square feet. The density of the development is approximately 10.75 DU/A.
Link to project plans.
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES C-40
13 Waymark Homes - Cedar Blvd. - entitled
Zoning: Residential Medium Density
General Plan Designation: Medium Density
Residential
APN: 92A-2585-30-4, 92A-2585-12-1,
92A-2585-31
Size: 3.44 acres
Max Allowable Density 30 units per acre.
Realistic capacity based on approved entitlements or
developer proposal
The applicant, Waymark Development, proposes to demolish the existing buildings currently occupied by
commercial/industrial uses and construct 76 three-story attached townhomes within 14 buildings on a 3.44-acre site located at 38600 Cedar Blvd. The project calls for 34
three-bedroom units and 46 four-bedroom units with a total density of 22 DU/A. The project would include landscaping and open space areas, a new private street, and on-site improvements. The property is zoned RM (Residential
Medium Density District). The project requires a Design Review, Minor Use Permit for a building height up to 40 feet, and a Vesting Tentative Subdivision Map. Below is a render of an example unit.
Link to project plans.
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES C-41
14 NewPark Place (Phases A to D)
Zoning: Regional Commercial
Specific Designation: Mixed-Use I
APN: 901-111-19, 901-111-30, 901-111-29,
901-111-24, 901-111-22, 901-111-20,
901-111-25, 901-111-21, 901-111-26,
901-111-31
Size: 52.03 acres
Max Allowable Density 160 units per acre.
Realistic capacity based on Specific Plan
As described above in Section 4 and in other sections of this Housing Element, the NewPark Place Specific Plan will guide the redevelopment of this entire area, comprising 52.03 acres with an expected residential build-out capacity of 1,519 across 5 major phases as follows (see Phase A in top aerial, Phases B-D in bottom aerial):
● Phase A: Type-III multifamily development. A total of 319 units on.3.98 acres at a density of 80 dwelling units per acre. The development includes six levels of parking.
● Phase B1: Type-III multifamily development. A total of 195 units on 3.47 acres at a density of 56 dwelling units per acre. The development includes a six level garage.
● Phase B2: Type-III multifamily development with a
podium. A total of 310 units on 4.30 acres at a density of 72 dwelling units per acre. The development includes a 3 -evel structure parking facility.
● Phase C: Type-III multifamily development with a podium.
A total of 300 units on 3.70 acres at a density of 81
dwelling units per acre. The development includes a 2
level garage and 1 sub-t.
● Phase D2: Type-III multifamily development. A total of 395 units on 5.67 acres at a density of 70 dwelling units per acre.
The development includes a five level garage.
The phases are regulated by the Mixed-Use Area I standards, which include a maximum building height of 200 feet, with buildings adjacent to the streets to be a minimum of 30 feet, but preferably 60 feet. Residential density may be up to 160 units per acre, but not less than 60 dwelling units per acre.
While the specific plan has a relatively high maximum density, it is largely unachievable for multiple reasons. First, the plan has a cap on the total number of units at 1,519. An adjustment of this number would require City Council action and a new EIR process.
Second, taller developments than Type-III multifamily would require new emergency vehicle typologies, procedures, and training which the City of Newark currently does not have nor does the surrounding area. Therefore, it is not surprising that the actual densities of the proposed
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES C-42
developments are somewhat lower than the maximum would permit.
Residential uses may be within residential only multiple story buildings and/or in buildings with a mix of uses. First floor residential is allowed in non-active frontage locations, which are outlined in the plan. Parking demand for development within areas designed Mixed-Use I must be accommodated by a combination of surface and structured parking per the Parking Sub Plan. The residential uses within each “block” must be self-parked within the boundary of the individual block. For a more detailed account of all applicable development standards, refer to the Specific Area Plan.
The NewPark Place plan has a 20 year planning arc, therefore it is expected that only 40% of the total units will be complete for the 8 year RHNA 65 Housing Element Period. As feasible, the City will continue to work with the property owner to encourage the inclusion of larger percentages of affordable units in future phases of development.
The build out capacity and affordable housing assumptions for NewPark Place provided in this sites inventory reflects City Council Resolution NO. 10,184 which went into effect on June 9, 2014 and is the guiding document which outlines that for apartment development, the affordability breakdown starting point should be 6% VLI, 3% LI, and 3% MOD in order to fully mitigate the impact of the residential development. The document gives City Council the authority to determine that an alternative distribution of affordable units will fully mitigate the impacts of the development on the need for affordable housing, based on community needs and the characteristics of the development. In the case of NewPark Phase A, Council advocated strongly for onsite affordable units instead of a mitigation fee.
As described in full in the Specific Plan, this area has adequate infrastructure to accommodate the planned residential development and there are no known environmental constraints. In addition, each separate phase of this development would comprise a land area of less than 10 acres.
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES C-43
Link to the project plans for Phase A.
NEWARK GENERAL PLAN HOUSING
15 Grocery Outlet Center
Zoning: Commercial Mixed Use
General Plan Designation: Commercial Mixed
Use
APN: 92A-900-1-2
Size: 4.62 acres (1.54 acres under the assumption
that ⅓ of the site will redevelop)
Max Allowable Density 60 units per acre.
The Grocery Outlet Center site is an aging multi-tenant retail center with a large surface parking lot, which takes up approximately 40% of the site, located on the corner of Newark Boulevard and Mayhews Landing Road. The site was previously included in the 5th Cycle Housing Element. The shopping center is a collection of four different buildings, each with multiple tenants providing a range of retail and service options for the community, including a well established Grocery Store.
Realistic Capacity
Since the leases are current and tenants like Grocery Outlet are popular among residents, the approach here is that only a third of the site will feasibly redevelop throughout the eight-year planning period.
Newark code requires ground floor retail adjacent to Newark Boulevard, so a realistic capacity of 80% was applied to this site yielding a total of 57 units as detailed below. The density is at 45 dwelling units per acre giving it 100% affordable potential. The existing establishments, a liquor store, Southeast Asian restaurant, and flower shop would be able to continue to operate on the ground floor.
Analysis of Redevelopment Potential
● In Newark and the Tri-City Area, similar commercial centers have recently developed as mixed-use and/or 100 percent residential projects at similar densities. The redevelopment of the NewPark mall and surrounding area are an important comparable example of the residential redevelopment potential provided by this key site. ● The redevelopment potential of this site is also supported by the relatively low improvement to land value ratio of 0.49, which shows that the built improvements are valued lower than the underlying land. This indicates a strong propensity for the site to redevelop during the planning period.
RedevelopmentIndicators
● Low improvement to land value ratio (0.49) meaning that the appraised value of the land is greater than the appraised value of the built improvements, indicating a propensity for redevelopment to another land use
● Large and underutilized surface parking lot (greater than 2 acres) ● Aging structures and lack of recent improvements (auto-oriented single story commercial from 1964-1986)
● Single ownership of parcel
● Adjacent redevelopment occuring (Mayhews Place)
APPENDIX C HOUSING SITES C-44
NEWARK GENERAL PLAN HOUSING
● Similar redevelopment occuring in Newark (NewPark Place) Rezoning
Since the site was included in the 5th Cycle Housing Element, per Program H3.6 described above, this site will be subject to a zoning text amendment that will require by-right approval of any new housing development in which at least 20 percent of the units are affordable to lower-income households.
Realistic Capacity Analysis
The following summary table provides a step by step analysis of the realistic capacity factors applied to this site, as well the reasoning for applying these adjustment factors to arrive at a realistic yield of net units.
Table C-5: Grocery Outlet Center Realistic Capacity Analysis APPENDIX C HOUSING SITES C-45
NEWARK GENERAL PLAN HOUSING
16 Thornton Ave. Sites (within Old Town Neighborhood)
Zoning: Commercial Mixed Use
General Plan Designation: Commercial Mixed
Use
APN: 92-51-2-3, 92-29-20-2, 92-29-19-2,
92-51-5-3, 92-29-18-2, 92-29-17-2, 92-29-13,
92-29-16-2, 92-29-15-2, 92-50-1-3, 92-29-14-2,
92-50-2-3, 92-50-3-3
Size: varies by parcel,total of 2.5 acres
Max Allowable Density 100 units per acre per
Old Town Specific Plan
The Thornton Avenue area comprises a number of
underutilized parcels which are primed for residential
development during the planning period. Improvement to
land value ratios for the sites range from 0.22 to 0.79 indicating a propensity to redevelop, and the Old Specific Plan (Specific Plan) also includes policies encouraging residential and mixed-use development. The size and shape of these
contiguous sites lend themselves to parcel assembly and lot consolidation.
The major constraints facing these parcels are the need for assemblage (most parcels are less than half an acre) and ground floor retail requirements along Thornton Ave.
Because of this, a realistic capacity multiplier of 80% was used to calculate unit totals.
While many of the buildings date from earlier than 1970, The Specific Plan found that there are no historic buildings or structures in the planning area. The plan notes that 25 buildings within the planning area have “historic merit”, the City’s Historic Preservation Program allows for modification and demolition of buildings with historic merit. Several existing City regulations would help ensure that development and redevelopment activities do not cause a substantial adverse change. Therefore, the protection of cultural resources is not a significant barrier to redevelopment of these sites.
Analysis of Redevelopment Potential
Many of the Thornton Avenue parcels were also previously identified as “potential opportunity sites” in the Specific Plan. According to the Specific Plan, these sites “include vacant and underutilized sites, which may be more likely locations for redevelopment.” The plan projected that throughout the planning area, 400 net new units could be developed by 2040 which would be in the form of multi-family buildings with five or more units.
18 In order to achieve this goal, the city has implemented land use regulations outlined in the Specific Plan which promote high density development, such as increased densities (up to 100 dwelling units per acre) and height limits (up to 75 feet)) and the ability for 100 percent residential projects. The market has already started to respond to these new regulations with the Lepakshi Homes projects (88 18 Newark Old Town Specific Plan, pg. 21
APPENDIX C HOUSING SITES C-46
NEWARK GENERAL PLAN HOUSING
units, 15 either low income or moderate, on 1.25 acres) and nearby SAHA (57 affordable units on 0.54 acres) as examples which are currently in the development pipeline. In addition, the city will promote the consolidation of small parcels through Program H2.11 which in turn will encourage larger scale multi-family development. The City is also planning significant pedestrian-oriented infrastructure improvements in the Old Town neighborhood which will increase the viability for welcomed high-density, mixed-use, compact development.
As noted in the Specific Plan, the opportunity sites originally selected and identified here were originally selected due to their redevelopment potential. It is important to note that since multiple factors influence redevelopment and some opportunity sites were not explicitly identified in the Housing Element, it is likely that new development will occur on sites which were not specifically identified in the sites inventory.
RedevelopmentIndicators
● Low improvement to land value ratio (0.22 to 0.79) meaning that the appraised value of the land is greater than the appraised value of the built improvements ● Updated land use controls which allow significantly denser development (Old Town Area Plan) ● Aging buildings and obsolete development typologies (single story commercial with frontage parking dating from before 1970, most with little historic merit) ● Adjacent redevelopment occuring (Lepakshi Homes and SAHA) ● Candidate for lot consolidation incentives through Program H2.11 Rezoning
Since the sites were included in a previous Housing Element, per Program H3.6 described above they will be subject to a zoning text amendment that will require by-right approval of any new housing development in which at least 20 percent of the units are affordable to lower-income households.
Realistic Capacity Analysis
The following summary table provides a step by step analysis of the realistic capacity factors applied to this site, as well the reasoning for applying these adjustment factors to arrive at a realistic yield of net units.
Table C-6: Thornton Ave. Sites Realistic Capacity Analysis APPENDIX C HOUSING SITES C-47
NEWARK GENERAL PLAN HOUSING
17 Cedar Blvd. and Timber St. Industrial Sites
Zoning: Residential Medium Density
General Plan Designation: Medium Density
Residential
APN: 92A-2125-13, 92A-2125-11-2,
92A-2125-17
Size: 4.96 acres
Max Allowable Density 22-30 units per acre.
These formerly industrial sites are underutilized properties with I/L ratios ranging from 0.38 to 0.58, indicating a propensity to redevelop. They are in an area of rapid change where market dynamics have tended to support residential development in recent years.
Rezoning
Since the sites were included in a previous Housing Element, per Program H3.6 described above they will be subject to a zoning text amendment that will require by-right approval of any new housing development in which at least 20 percent of the units are affordable to lower-income households.
RedevelopmentIndicators
● Low improvement to land value ratio (0.38 to 0.58)
meaning that the appraised value of the land is greater than the appraised value of the built improvements
● Aging buildings (single story light
industrial/warehouses dating from 1964 to 1982)
● Significant adjacent medium residential development
occurred in the previous HE Cycle
● Similar redevelopment occuring in Newark (Waymark Homes) Realistic Capacity Analysis
The following summary table provides a step by step analysis of the realistic capacity factors applied to this site, as well the reasoning for applying these adjustment factors to arrive at a realistic yield of net units.
APPENDIX C HOUSING SITES C-48
NEWARK GENERAL PLAN HOUSING
Table C-7:Cedar Blvd. and Timber St. Industrial Sites Realistic Capacity Analysis #1 Table C-8: Cedar Blvd. and Timber St. Industrial Sites Realistic Capacity Analysis #2 Table C-9: Cedar Blvd. and Timber St. Industrial Sites Realistic Capacity Analysis #3 APPENDIX C HOUSING SITES C-49
NEWARK GENERAL PLAN HOUSING
18 E-Z 8 Motel
Zoning: Residential High Density
General Plan Designation: High Density
Residential
APN: 92A-2585-32
Size: 2.24 acres
Max Allowable Density 60 units per acre.
This is an underutilized hotel property with an I/L ratio of 0.97.
In the surrounding market area, similar properties have been redeveloped with residential uses, and hotel conversions like the Cedar Community Apartments described above are
increasingly common. The site is also adjacent to the entitled Waymark Homes project which proposes 80 townhomes.
Given the site's high density zoning designation which allows for densities between 25 and 60 dwelling units per acre and 100 foot height maximums, the City supports residential redevelopment here. After accounting for max lot coverage standards and setbacks, a realistic capacity modifier of 65% was applied to the site which would yield a total of 87 units.
After the adjustment, the density of the site will be almost 39 dwelling units per acre, well above the default density of 30 dwelling units per acre for 100% affordable projects. The city strongly supports the development of a 100% affordable
housing development at this site and could pursue a similar strategy as SAHA in Old Town, which was also in an RH zone.
The city will continue to work with the property owner to advocate for residential use.
Rezoning
Since the site was included in a previous Housing Element, per Program H3.6 described above it will be subject to a zoning text amendment that will require by-right approval of any new housing development in which at least 20 percent of the units are affordable to lower-income households.
RedevelopmentIndicators
● Low improvement to land value ratio (0.97) meaning that the value of the land is greater than the improvements
● Aging buildings and underutilized surface parking lot (two story motel dating from 1986) ● Significant adjacent medium/high density residential development occurred in the previous HE Cycle
● Similar redevelopment occuring in Newark (SAHA)
Realistic Capacity Analysis
The following summary table provides a step by step analysis of the realistic capacity factors applied to this site, as well the reasoning for applying these adjustment factors to arrive at a realistic yield of net units.
APPENDIX C HOUSING SITES C-50
NEWARK GENERAL PLAN HOUSING
Table C-10: E-Z 8 Realistic Capacity Analysis
APPENDIX C HOUSING SITES C-51
NEWARK GENERAL PLAN HOUSING
19 Cherry Plaza
Zoning: Commercial Mixed Use
General Plan Designation: Commercial Mixed
Use
APN: 92-50-13
Size: 0.96 acres
Max Allowable Density 100 units per acre (within
Old Town Specific Plan Area)
This underutilized property has an I/L ratio of 0.55 , indicating a propensity to redevelop. The site has an educational use, but recent images show vacancies with a “for lease” sign. The surrounding market area has experienced the residential redevelopment of other such sites in recent years.
The site is located within the Old Town Specific Plan Area which allows the site to have densities between 30 and 100 dwelling units per acre. The height maximum is 48 feet. Unlike other CMU locations outlined in the Element, this site is not required to have ground floor retail because it is not fronting either Newark Ave. or Thornton Boulevard. A realistic
capacity modifier of 80% was still applied, even though this could be considered conservative.
Realistic Capacity Analysis
The following summary table provides a step by step analysis of the realistic capacity factors applied to this site, as well the reasoning for applying these adjustment factors to arrive at a realistic yield of net units.
Table C-11: Cherry Plaza Realistic Capacity Analysis
APPENDIX C HOUSING SITES C-52
NEWARK GENERAL PLAN HOUSING
20 Thornton Ave. Sites (outside of Old Town)
Zoning: Residential High Density
General Plan Designation: High Density
Residential
APN: 92A-919-22-2, 92A-919-21-2,
92A-919-20-2, 92A-919-19-2, 92A-919-15-2,
92A-919-14-2, 92A-919-13-2, 92A-919-12-2,
92A-919-11-2
Size: 1.2 acres
Max Allowable Density 60 units per acre.
As with the sites within the Old Town area, these
underutilized sites also show strong potential for
redevelopment with residential uses. I/L ratios range from
0.53 to 0.76. These units do not have a required mixed-use component. The size and shape of these contiguous sites lend themselves to parcel assembly and lot consolidation and includes two contiguous parcels that are under the same ownership.
Rezoning
Since the sites were included in a previous Housing Element, per Program H3.6 described above they will be subject to a zoning text amendment that will require by-right approval of any new housing development in which at least 20 percent of the units are affordable to lower-income households.
RedevelopmentIndicators
● Low improvement to land value ratio (0.53 to 0.76)
meaning that the value of the land is greater than the
improvements
● Aging buildings and obsolete development style
(single story homes, the majority converted to commercial purposes and were built before 1970)
● Significant adjacent medium residential development occurred in the previous HE Cycle and currently (SAHA)
● Two vacant lots under same ownership and candidate for lot consolidation incentives through Program H2.11
Realistic Capacity Analysis
The following summary table provides a step by step analysis of the realistic capacity factors applied to this site, as well the reasoning for applying these adjustment factors to arrive at a realistic yield of net units.
APPENDIX C HOUSING SITES C-53
NEWARK GENERAL PLAN HOUSING
21 Sycamore St. Vacant Lot
Zoning: Residential High Density
General Plan Designation: High Density
Residential
APN: 92-255-11
Size: 1.81 acres
Max Allowable Density: 60 units per acre.
This site consists of an underutilized vacant residential lot in an area with robust services and supportive infrastructure.
Zoned for high-density residential uses with a minimum
density of 25 dwelling units to the acre and a maximum
density of 60 dwelling units to the acre, this site is suitable for accommodating lower-income units. Existing development
standards would allow the development of this site at
maximum densities, consistent with comparable affordable housing developments currently in Newark’s development
pipeline.
Rezoning
This site will also also be subject to Program H3.6 since it is being carried over from a previous 5th Cycle Housing
Element.
Realistic Capacity Analysis
The following summary table provides a step by step analysis of the realistic capacity factors applied to this site, as well the reasoning for applying these adjustment factors to arrive at a realistic yield of net units.
Table C-12: Sycamore St. Vacant Lot Realistic Capacity Analysis APPENDIX C HOUSING SITES C-54
NEWARK GENERAL PLAN HOUSING
22 Cedar Blvd. Public Storage Sites
Zoning: Residential Medium Density
General Plan Designation: Medium Density
Residential
APN: 92A-2375-32
Size: 2.9 acres
Max Allowable Density 22-30 units per acre.
This public storage site has an I/L ratio of 0.78, indicating a propensity to redevelop with another use, and residential uses are generally the highest and best use in the surrounding neighborhood market area.
Rezoning
Since the site was included in a previous Housing Element, per Program H3.6 described above it will also be subject to a zoning text amendment that will require by-right approval of any new housing development in which at least 20 percent of the units are affordable to lower-income households.
RedevelopmentIndicators
● Low improvement to land value ratio (0.78) meaning
that the value of the land is greater than the
improvements
● Aging structure and single story use (building from
1985)
● Significant medium density residential development
occurred adjacent in the previous HE Cycle
● Similar redevelopment occuring (Waymark Homes)
Realistic Capacity Analysis
The following summary table provides a step by step analysis of the realistic capacity factors applied to this site, as well the reasoning for applying these adjustment factors to arrive at a realistic yield of net units.
Table C-13: Cedar Blvd. Public Storage Realistic Capacity Analysis APPENDIX C HOUSING SITES C-55
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES C-56
23 Filbert Villas - 37243 & 37257 Filbert St. - expired entitlement Zoning: Residential Medium Density
General Plan Designation: Medium
Density Residential
APN: 92-131-1-9, 92-131-2-4,
92-131-3
Size: 0.96 acres
Max Allowable Density 30 units per acre.
Realistic capacity based on approved
entitlements or developer proposal
According to application materials dated 3/23/17, SRAJ
Development Inc, proposed Filbert Villas, a 16 unit market rate residential condominium project. The project consists of 16 new three-story four-bedroom townhouses. The density of the project is approximately 16 DU/A and the units will be market-rate. While the entitlement on this project expired, the city expects to see a project with similar densities.
A recent interview with the property owner indicates
continued interest in the project. Barriers include high interest rates, higher construction costs, and lower sale prices, but the property owner plans to take steps to move forward with the project.
Link to project plans.
NEWARK GENERAL PLAN HOUSING
24 Filbert Ave. Sites
Zoning: Residential Medium Density
General Plan Designation: Medium Density
Residential
APN: 92-54-5, 92-54-6, 92-54-4
Size: 0.7 acres
Max Allowable Density 22-30 units per acre.
These sites would support relatively lower-density residential development and the sites inventory does not assume that affordable housing would be feasible on these sites.
RedevelopmentIndicators
● Two parcels have low improvement to land value ratio
(0.09 and 0.03) meaning that the value of the land is
greater than the improvements
● Aging structures and single story use (two building
predate 1970)
● Similar redevelopment potential across the street
(Filbert St. Villas)
● Candidate for lot consolidation incentives through
H2.11
Realistic Capacity Analysis
The following summary table provides a step by step analysis of the realistic capacity factors applied to this site, as well the reasoning for applying these adjustment factors to arrive at a realistic yield of net units.
Table C-14: Filbert Ave. Sites Realistic Capacity Analysis APPENDIX C HOUSING SITES C-57
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES C-58
25 Mayhews Place - 36589 Newark Boulevard - expired entitlement Zoning: Residential Medium Density
General Plan Designation: Commercial
Mixed Use
APN: 92A-623-43
Size: 0.53 acres
Max Allowable Density 30 units per acre.
Realistic capacity based on approved
entitlements or developer proposal
According to project plans, David Langon Construction, Inc. is proposing 6 attached two-story, market-rate, single-family units on a site area of approximately 0.53 acres. The density of the proposal is 12 DU/A. Below is a rendering of the exterior facade. While the entitlement on this project expired, the city expects to see a project with similar densities.
Link to project plans.
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES C-59
26 Locust St. & Railroad - 37093 Locust St. - expired entitlement Zoning: Residential Low Density
General Plan Designation: Low-Medium
Density Residential
APN: 92-125-10
Size: 0.43 acres
Max Allowable Density 8.7 units per acre.
Realistic capacity based on approved
entitlements or developer proposal
According to application materials dated June 21, 2018, Cherry Properties is proposing 6 new market-rate apartments at 37093 Locust Street. The project title is The Railroad Apartments. While the entitlement on this project expired, the city expects to see a project with similar densities.
Link to project plans.
NEWARK GENERAL PLAN HOUSING
APPENDIX C HOUSING SITES C-60
27 Fahmy Homes - 37503 & 37511 Cherry Street - expired entitlement Zoning: Residential Medium Density
General Plan Designation: Medium Density
Residential
APN: 92-75-5-2, 92-75-4-2
Size: 0.38 acres
Max Allowable Density 30 units per acre.
Realistic capacity based on approved entitlements or
developer proposal
According to application materials dated November 9th,
2020, Sawart S. Fahmy had proposed a four-lot residential project on two adjacent parcels. The proposed subdivision called for 4 single-family market-rate units. While the entitlement on this project expired, the city expects to see a project with similar densities.
In 2023, a new owner gained site control and has indicated strong interest in combining these sites to create a larger site for development. The owner submitted a preliminary
application for a seven-unit rowhouse project. The city has completed its preliminary review and is now awaiting a formal application from the property owner.
Link to project plans.
NEWARK GENERAL PLAN HOUSING
19 Source: HCD Housing Element Implementation and APR Dashboard APPENDIX C HOUSING SITES C-61
28 Neighborhood Infill Sites
Zoning: Residential Low Density
General Plan Designation: Low-Medium
Residential, Medium Density Residential
APN: 92-135-23, 92-127-13, 92-136-15,
92-24-10, 92-127-20, 92-125-2-2
Size: 1.52 acres
Max Allowable Density 11-15 units per acre.
These are mixed neighborhood infill sites supporting lower density residential development. Five of the six sites are vacant while the non vacant site has subdivision potential.
These sites would support relatively lower-density residential development and the sites inventory does not assume that affordable housing would be feasible on these sites.
These sites are expected to redevelop individually, and the sites will be listed separately by parcel number on the electronic submission form.
RedevelopmentIndicators
● Either vacant or underutilized (subdivision potential) ● Two vacant lots are adjacent candidate for lot
consolidation incentives through Program H2.11
● Strong demand for market rate residential in
established neighborhoods (Over 750 single family
detached units completed between 2018 and 2022
19 )
NEWARK GENERAL PLAN HOUSING
APPENDIX D PUBLIC COMMENT
The public comment period for the first Draft 2023-2031 Housing Element began on February 24th, 2023. As required by AB 215, the first Draft Housing Element was available for a 30-day public review period, before incorporating public comments and sending the revised first draft to HCD. Based on community feedback and to ensure that the Newark community had enough time to review and comment, the City kept the first public review draft of the Housing Element available for public comment through the 90-day State HCD review period (February 24th - March 27th, 2023). The City posted an updated draft for public review from August 7th - August 17th, 2023).
Thank you to all those who submitted public comments and attended public meetings. Based on community feedback and direction from Councilmembers, staff have prepared a response to comments to illustrate how the revised draft reflects public input received during the 142-day comment period. A total of 11 comments, comment letters, and emails were received during the comment period. No comments were received on the updated draft during or after the 10-day public review period in August 2023. Staff received an additional 5 comments during subsequent Housing Element public review periods.
1. Carla Rodrigez
2. Taran Singh
3. Pamela Roush
4. Andrea Heckman
5. Matt Francois on behalf of Integral Communities
6. Carol Drake
7. Namit Saksena
8. Sarah Klaustermeier, Brookfield Properties
9. Victor Flores, East Bay Resilience Manager, Greenbelt Alliance, David Lewis, Executive Director Save The Bay , Maxwell Davis and the 2500 members of East Bay for Everyone
10. Neelam Noorani
11. Aundi Mevoli, BayKeepers
12. David Song
13. Rishika Rawat
14. Alyssa Lopez
APPENDIX D PUBLIC COMMENT D-62
NEWARK GENERAL PLAN HOUSING
15. Pat Callaway
16. Krisie Knutson
APPENDIX D PUBLIC COMMENT D-63
NEWARK GENERAL PLAN HOUSING
Table D-1: Housing Element Draft Public Comments Received and City Response Letter
Number
Name/
Organization
Date Comment City Response
1. Carina
Rodriguez
After reviewing the Draft document, my biggest
concerns are:
1) Newark's continuing to infringe on the marshes
and wetlands around our city. This is a large
environmental issue and I saw very little mention of
this in the housing plans. However, the city continues
to approve housing developments on these natural
lands. This will especially be an issue as climate
change continues to wreak havoc on us - I do not want
the city to be put in a situation where we have to use
tax dollars to help those who ignorantly purchased
homes on these wetlands and marshes. Especially
when the lands should have never been built on in the
first place.
2) I do not want the city of Newark to become a haven
for low income housing. While we should open our
city to new residents - low income housing invites low
income individuals who will not be contributing a
significant amount in taxes. Some are indeed hard
workers and have been beaten down by the systemic
failures of our city, county, state, and country, but
some have no interest in doing anything to help
themselves and will just suck up the free resources
paid for by taxpayers. Yes, we do need low income
housing to assist some in our community. However,
we should not accept a large percentage of this low
income housing and rather have it spread out
throughout the county of Alameda and the Bay Area.
3) Lastly, there are many apartments, townhouses,
1. The City of Newark is guided by the
Area 3 and 4 Specific Plan, adopted by the City
Council in 2009. This specific plan provides
land uses, development regulations,
engineering and site improvements, landscape
guidelines, and natural resource conservation
standards. In 2014, the City entered into a
Development Agreement with Newark
Partners LLC, which guides development
within certain areas of Area 3 and 4 and
establishes performance expectations and
requirements for the developers and the City.
Development within the specific plan area has
been limited to Area 3 and the residential
subdivision known as “Sanctuary Village”. In
2019, the City Council approved a residential
subdivision via a Planned Unit Development
permit consisting of 469 homes along with a
determination that the environmental effects
of the project were sufficiently analyzed and
were under the scope of the previously
adopted 2015 Recirculated Environmental
Impact Report. Subsequent to Council’s 2019
actions, the environmental determination was
challenged in court. As of 2023, no unresolved
legal matters are associated with the project.
In 2021, the project sponsor indicated to the
city that the project would be reduced in size
from 469 units to approximately 430 units. The
project sponsor is working with the city
APPENDIX D PUBLIC COMMENT D-64
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and duplexes that are completely run down and look
absolutely awful. These can be found on Newark Blvd
across the street from Newark Community park and
Cherry towards Thornton. This housing looks abysmal
and it's sickening that landlords are allowed to rent
these apartments at top dollar while they are clearly
falling apart and have made no investment in keeping
them up to a basic, human level. Before we begin to
build more housing, we need to look at this housing
and bring them up to a livable standard for those
currently living in the city. Let's fix our home city first before we begin building more housing that may
eventually look as awful as this housing on Newark
Blvd. and Cherry.
regarding site development activities. As
Sanctuary West is a fully entitled project with
legal matters resolved, the City has identified
the project as contributing to the RHNA goal
for above-moderate housing for the 6th Cycle.
2. Newark is subject to RHNA, the process
that resulted in the assignment of 1,871 units
of housing for the 6th Cycle Housing Element.
Each Bay Area jurisdiction received their own
RHNA allocation. Compared to other Bay Area
cities, Newark's RHNA increase from the 5th
Cycle (1,048 units) to the 6th Cycle was
relatively small at approximately 75%. This is
not a requirement to build 1,874 units, but
Newark must demonstrate that the city has the
correct land use policy, programs, and
requirements to accommodate the units over
the next eight years. Since 2015, Newark has
built thousands of market-rate units, but
relatively few affordable units. The City
Council recognizes the need for housing that is
affordable and available for all members of the
community.
3. The City recognizes that some
residential buildings in our community have
been neglected by their property owners.
Although some investment to refurbish units
has occurred, more can be done. The Draft
Housing Element includes goals, policies, and
programs that address this need, starting with
the Goal and Policy H-1: Preserve + Improve
Existing Housing- “Leverage local funds to
supplement county, state and federal funding
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to support the maintenance, rehabilitation and
preservation of existing rental and ownership
housing. “
2. Taran Singh Area 3 and Area 4 plan of building 469 homes an environmental disaster. The City of Newark cannot
solve the housing problem by 500 odd homes on our
wetlands. I urge the city to revert the development
plan for Area 3 and Area 4 and let them be a safe
abode for our flora and fauna. Overall, I think the City needs to get denser in areas close to the 880
corridors and provide connectivity to BART/Transit.
See Response 1, above.
3. PAMELA
ROUSH
Please do not build in Newark Area 4. That is a flood
zone and it will only get worse. Please, please
reconsider building in Area 4. Thank you.
See Response 1, above.
4. Andrea
Heckman
I'm very concerned about development in the Area 4
shoreline because of it's importance to the ecosystem
and protecting our existing development from future
flooding. It seems imprudent to build on an area which
is expected to need massive alteration and protection
from future sea level rise. Makes no sense to develop
housing where future disaster is predictable.
See Response 1, above.
5. Matt Francois We are submitting these comments on behalf of our client, Integral Communities, the proponent of the
Mowry Village project. We write to request certain
technical corrections and clarifications to the draft
Housing Element. For instance, the reference to 398
built single family units in Area 3, Sub Area B (on page 104) should instead refer to 386 units. Additionally,
the reference to the Mowry Village project (on page
105) refers to the site as being within Area 3 when it
is located within Area 4; please also correct the
Thank you for your comments and corrections.
The references to Area 3/4 and the unit count
have been corrected in the October 3 draft.
The language about retiring the Specific Plan
has been adapted to reflect that the City “may
take action to retire the plan in a manner
consistent with applicable laws and
conforming to previously adopted agreements
and approved entitlements.”
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location of the Mowry Village project in the last
paragraph of this section. Finally, also in the last
paragraph of this section, please clarify the intent
about retiring the Area 3 & 4 Specific Plan after action on the Mowry Village project as it is anticipated that
the Specific Plan would continue to be relied on to
make consistency determinations for the Mowry
Village and other projects.
6. Carol Drake Newark Area 4 is not a good choice for development.
Wetlands sequester carbon, store floodwater, and
filter nutrients and sediment from water.
Already included in the expansion boundaries of the
Don Edwards SF Bay National Wildlife Refuge, Area 4
provides an unparalleled opportunity to restore
wetlands and other wildlife habitat, while creating a
buffer against sea level rise.
Newark should focus on infill development instead.
It could utilize existing neighborhoods and major
development opportunities such as revitalizing
NewPark Mall, which could provide 1,519 housing
units, and smaller projects already planned in and
around Old Town Newark. Building in these
developed areas would help place housing near job
centers, reducing vehicle miles traveled and road
congestion.
See Response 1, above.
7. Namit
March
21st
2023
I was very happy to see that you mentioned working
with Newark Unified School District in the draft
Housing Element, Policy H2.4. Other cities in the Bay
Area have helped their school districts address the
missing housing for teaching staff and I think Newark
should also partner with NUSD to do something
Hello Namit, Thank you for your comments.
We have updated policy H2.4, with more
information from state law to support the
redevelopment of land owned by Newark
Unified School District. We agree, and the
data shows how large of a burnden
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similar. I loved the creative idea you had shared
during our chat at the after party of Mayor Hannon's
swearing in ceremony late last year. Comment 2:
After housing, the next big expense for low income
residents tends to be transportation.
While our Pedestrian & Bicycle Master Plan was
approved in Feb 2017, we haven't made massive
strides in making the overall vision in that plan come
true.
Bike lanes will not only improve accessibility to local employers: restaurants, gas stations, retail stores,
Home Depot, Amazon etc. but also upcoming city
centers such as NewPark Place and might even spark
Old Town into life. The other thing is, bike lanes will benefit residents of all income levels.
I saw that the number 1 response to Q.9 of the Public
Engagement and Input Survey with 33% respondents
was public infrastructure including bicycle lanes.
Therefore it would be great if the Housing Element
had a specific call out to pedestrian and bicycle
infrastructure vs. the single specific mention on Pg.
128.
I think exploring ways to align the relevant parts of
the Housing Element more closely with the Bicycle
Element will help us capture this once in a decade
opportunity to shape the future of housing in Newark
by the handle bars!
transportation can be financially for residents.
We also heard the desire for more pedestrian
friendly streets and bike lanes in the city for
more transportation options. The Public
Works department has plans to start
implementing portions of the bicycle master
plan, and we are happy to see that the majority
of sites are along bus routes as well. The
community development department looks
forward to working with the public works
department to coordinate these two critical
efforts.
8. Sarah
Klaustermeier
March
24th
2023
I reviewed the draft Housing Element and had one
comment specific to Phase A. The breakdown of
income levels in Table C-1 is different than what is
Thank you for your comments. The 6th Cycle
unit yield and affordability distribution has
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approved in our Affordable Housing Agreement.
[see screenshots below]
been updated in the appropriate tables to
reflect the City Council’s Resolution 10,184.
9. Victor Flores,
East Bay
Resilience
Manager,
Greenbelt
Alliance
David Lewis,
Executive
Director
Save The Bay
Maxwell Davis
and the 2500
members of
East
Bay for
Everyone
March
27th
2023
The undersigned organizations and individuals are
excited to participate in Newark’s Housing Element
process. We write to offer feedback on Newark’s
Draft Housing element for the sixth cycle.
This update is an opportunity for Newark to make
sure that high resource and racially segregated
neighborhoods take on their fair share of the City’s
housing needs, particularly for lower income
residents who are disproportionately people of color.
As your housing element notes, the majority of
Newark residents are in housing that is either
unaffordable or does not meet their needs. In
particular, the Latine community experiences high
levels of overcrowding and above average spending
on housing. The City must ensure that all, regardless
of race or income, can enjoy safe, stable, and
accessible homes located either near jobs or transit
(bus as well as BART) and on sites that are clean and
suitable for development.
We are glad to see many great policies and sites that
promote infill and active transportation. We also
appreciate Newark going above the buffer
recommendations for realistic zoning capacity.
Among the sites we’re excited about is the Newpark
project which will build medium density units on
parking lots. This project is a perfect example of infill with access to AC Transit lines to BART.
We also want to commend the city for Policy H6.7:
Hello Victor, David, and Maxwell,
We appreciate your thoughtful comments on
the Housing Element draft. In response to
community discussion through engagement we
have worked to make significant edits to many
programs to better support the uptake of
housing that is affordable to all segments of the
population, and in proximity to public
transportation and active transportation
infrastructure investments. In response to
climate and sea level rise, the Newark Safety
Element is in process and will further address
many of those questions and comments.
Program H3.5 Parking standards has been
strengthened, removing and reducing parking
requirements for multiple housing types. We
welcome your continued advocacy in this area.
Numerous programs to increase housing
access, opportunity and affordability have been
added or strengthened. Program H2.1, SB9,
H2.2, for ADU production, and H2.3 is looking
at how a community guided plan for the 4
corners area can generate more housing close
to parks, schools and a potential rail station.
Program H2.6 looks to utilize state law to
develop affordable housing for staff and
employees, and H2.8 for Missing Middle
Housing has been updated, and a new program,
APPENDIX D PUBLIC COMMENT D-69
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Residential Development in the FloodPlain. We
continue our opposition to the Sanctuary West
project. We are glad that the city recognizes that such developments are not in the interest of Newark
residents nor the prudent fiduciary responsibility of
the council and staff. In an era where our communities
are facing the consequences of climate change and
sea level rise, each community should be actively
assessing how it will ensure future developments and
infrastructure will be resilient to flood risk without
adversely impacting existing residents and the
environment. Building in Area 4 baylands would both
greatly increase flood risk across the city, and also
squander the opportunity to utilize these lands as a
valuable flood buffer to protect the community from
flooding and sea level rise, while also providing
improved natural wildlife habitat and increased
outdoor access opportunities for residents.
Additionally, since there is broad community
opposition from both environmental and pro-housing
organizations in the area, building here has a high
chance of community pushback which could delay the
project to outside the planning period.
We strongly recommend updating your Climate
Action Plan which is now 13 years old in order to
implement mitigation measures for water level rise
(both sea level rise and groundwater rise) and to
reduce greenhouse gas (GHG) emissions. We also
recommend adding a policy to restore wetlands in
order to maximize carbon sequestration and
protection from sea level rise.
H2.10 will increase the zoning districts where
single resident occupancy housing is permitted
in Newark.
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Program H3.5: Parking standards study can be
strengthened to commit to reducing parking
minimums. A study from UC Berkeley’s Terner Center
found, “the presence of structured parking added
nearly $36,000 per unit.” The Draft Housing Element
notes that Newark has higher parking
minimums than neighboring jurisdictions. Parking,
especially covered parking, significantly increases the cost of housing developments and uses space for cars
rather than for people. In order to combat climate
change we know that we must reduce our reliance on
cars and fossil fuels. By prioritizing land for people
rather than cars we can address the housing crisis and
GHG reduction goals. Due to this higher level of
parking and its cost, we strongly urge you to commit
to reducing the amount of required parking to no
more than 0.5 spaces per residential unit, and zero in
transit-adjacent areas.
Program H2.1: Encourage new middle-density
housing with SB 9 and SB 10. While this is a laudable
direction for the city to go to encourage housing
abundance throughout the city, it could be
strengthened with a few more objective outcomes for
the program. (1) The SB 9 ordinance should not
reduce the buildable envelope below what an
underlying single-family zone allows. (2) Missing
middle zoning should allow at least 4 units on at least 80% of single-family lots—not merely legal as density,
but practical in terms of development standards. See
the Portland Residential Infill Program for a possible
direction where buildable envelope is increased the
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more units are planned on the lot. (3) No areas should
be exempted from missing middle except based on
floodplain, fire risk, or other major public health /
ecological risks. (4) Required parking should continue
to be no more than 0.5 spaces /unit, or zero near any
bus line, as the major space requirements of off-street parking reliably kills missing middle.
As we’ve mentioned, we oppose site number 2:
Sanctuary West because of its location on baylands
that are expected to see a nearly two feet rise of
water levels in less than 50 years. We continue to
urge you to remove this from your site list.
To support our vision for Newark, Greenbelt Alliance
and other partnering organizations have crafted a
go-to guide for accelerating equitable adaptation to
the climate crisis; The Resilience Playbook. The
Playbook brings together curated strategies,
recommendations, and tools to support local decision
makers and community leaders wherever they are in
their journey.
We look forward to continuing to engage with
Newark and the community on how this vital work
can move forward in the new year.
10. Neelam
Noorani
March
26th
2023
Steven Turner,
Dear Mayor Hannon, Vice Mayor Collazo and
Newark City Councilmembers,
Thank you for putting together a robust Housing
Element draft. This is a once in a decade moment
for Newark to make pivotal progress on climate
change and fair housing by developing a
See Response 1, above.
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comprehensive housing strategy that builds
housing in existing neighborhoods,while
ensuring the long-term climate resilience of the
city by protecting protecting valuable open
space along the shoreline as wildlife habitat
while providing community resilience as a flood
buffer from sea level rise.
I am writing to you today to implore you to
remove Newark Area 4 (“Sanctuary West”) from
your housing site inventory. This is not a good
place to build housing and should not be how
Newark meets a significant portion of its housing
requirement. Newark Area 4 is almost entirely
within a flood zone, and the site is anticipated to
be almost completely inundated with just 1
meter of sea level rise. Additionally, new studies
show that development of Area 4 could cause
flooding for other shoreline communities in the
Bay Area. Developing this site will increase flood
risk to current and future residents and cause
catastrophic financial issues to the city in the
future.
As evidenced by recent rains, Newark is already
experiencing flooding and if Area 4 is developed,
flooding will only increase. Newark has the
capacity within the existing urban areas to meet
its RHNA goals without putting future and
current residents at risk.
Further, the wetlands and wetland restoration
potential of Newark Area 4 should be embraced
for the numerous important benefits they
provide. Wetlands not only protect the city from
APPENDIX D PUBLIC COMMENT D-73
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flooding and provide wildlife habitat, they also
clean our Bay waters, and have been
demonstrated to be one of the most powerful
tools in nature for fighting climate change, by
sequestering carbon even more efficiently than
our forests. We desperately need to protect and
restore all the San Francisco Bay wetlands we
can, and Newark has an incredible opportunity
to support this regional goal.
We strongly urge Newark to become a
climate-forward city by focusing on infill growth
in existing neighborhoods - rather than putting
housing in an undeveloped shoreline flood zone
that should be permanently protected as a
wildlife habitat and as a valuable buffer to
protect
the community from flooding and sea level rise.
11. Aundi Mevoli,
BayKeepers
March
27th
2023
I write on behalf of San Francisco Baykeeper
(“Baykeeper”) in opposition to the City of Newark’s
inclusion of the Sanctuary West Project (also
commonly known as “Area 4”) in its Draft Housing
Element. Baykeeper submits these comments on
behalf of approximately 5,000 members and
supporters who live and recreate in and around the
San Francisco Bay Area. Together, our mission is to
defend San Francisco Bay from the biggest threats
and hold polluters and government agencies
accountable to create healthy communities and help
wildlife thrive. Our team of scientists and lawyers
investigate pollution via aerial and water
See Response 1, above.
APPENDIX D PUBLIC COMMENT D-74
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patrols, strengthen regulations through science and
policy advocacy, and enforce environmental laws on
behalf of the public.
It is discouraging to see the city continuing to
recommend and approve housing at Area 4. Instead of
allowing this area to be used as a natural barrier to
mitigate sea level rise (SLR) and groundwater
inundation as climate impacts increase, moving
forward with development will expose more than a
thousand new residents to SLR and put hundreds of
millions of dollars of property at risk. With only about ten percent of the original wetlands remaining around
San Francisco Bay, keeping these natural bufferlands
is essential to having a resilient community and
allowing shorelines to adapt in the midst of climate
change.
In addition, importing fill and paving over Area 4
would destroy restorable diked Baylands and harm
wildlife habitats for over a dozen special-status
species. This includes the endangered Salt Marsh
Harvest Mouse, endemic to only San Francisco Bay’s
marshes which are increasingly threatened with the
prospect of development. Furthermore, fragmenting
and degrading the existing wetlands in Area 4 will also threaten pup rookeries for harbor seals.
The scientific community has recommended Area 4 as
a high priority for protection and restoration of
APPENDIX D PUBLIC COMMENT D-75
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wetlands and upland habitat in order to support San
Francisco Bay wildlife species and help them adjust to
rising sea levels. Congress has already authorized
lands such as Area 4 to be added to the Don Edwards
SF Bay National Wildlife Refuge. We urge you to
follow the guidance of the region’s scientific
community and prioritize protecting and restoring
this land rather than development in Area 4 as
planned in your current Draft Housing Element.
During the January 2023 King Tides, drone footage
revealed just how much surface water already
occupies the site. These images give a glimpse of what
this site will look like under one foot of SLR. Seeing as this site is projected to have two feet of SLR by 2050, it is obvious why this is not a good site to build
housing or degrade more wetland habitat.
Lastly, sustainable development comes at the
intersection of economic, social and environmental
capitols. Area 4 development only looks at the
economic benefit to build. However, if natural capitol
was also part of the equation, one would see how
many benefits this land offers: greenhouse gas
sequestration, nature based multi-benefit adaptation
solutions to SLR, open space for community members
to enjoy, and biodiversity to ensure a healthy Bay.
Staff, we implore you to remove the Sanctuary West
Project from suitable housing in the 6th cycle of
APPENDIX D PUBLIC COMMENT D-76
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Newark’s Housing Element. Follow the advice of the
experts and protect these wetlands to, in turn, protect your community against climate change impacts.
Thank you for the opportunity to comment on this
Draft Housing Element. Please reach out to Aundi
Mevoli at [email protected] with any questions.
12. David Song October
13, 2023
I received a letter from city of Newark, regarding a
piece of land that I own. 37079 Ash street, APN:
92-127-31. The letter stated that my property has
been identified as a site that could be developed with
residential units, and well suited for development. I
have previously tried to discuss the development of
this site with the planning department multipe times,
with no success.
With this new initiative from the city, what kind of
incentive does the city provide to owners to develop
this site? Higher density? Lower permit fees? Faster
approval? Less red tape?
After reading through the Housing Element report, I
still could not figure out how does that report relate
to my property and its potential for development.
It would be nice for the city planner to sit down with
me and explain what kind of incentives the city
provides to the development of my site.
The city appreciates the commenter's interest
in developing the site identified in the
comment. City staff will contact the
commenter to initiate the discussion. The
development of the parcel could benefit
through the implementation of the following
programs:
-PROGRAM H2.8: Zoning for Missing Middle
Housing Types.
-PROGRAM H2.11: Catalyze the development
of small sites through a lot consolidation
incentive program
-PROGRAM H2.12: Ensure maximum
residential densities are achievable
-PROGRAM H3.1: Streamline Ministerial
Approval Permit Procedures
-PROGRAM H3.2: Develop objective design
standards for single family and multi family
developments and infill housing.
APPENDIX D PUBLIC COMMENT D-77
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I am more than happy to work with the city to develop
this site and provide more housing opportunities to
medium and low income families.
Best
David
13. Rishika Rawat October
25, 2023
I was wondering where I could find a pdf of the
Newark Safety Element.
Staff followed up with a PDF of the Newark
Safety Element
14. Alyssa Lopez October
25, 2023
Hi, I was wondering if there is any action being taken
to invest in some programs such as a first-time buyers
programs for Newark Residents, or a low-income
based programs. If so, I’d like to get more information or be interested in investing some input
Thank you!
The 2023-2031 Housing Element, Section 3
(Affirmatively Furthering Fair Housing
(AFFH)), contains a detailed analysis of the
factors contributing to housing equity,
segregation, access to housing opportunities,
and the need for housing throughout the
Newark community. Table 3-16 provides a
summary of contributing factors and actions
regarding housing issues in Newark. For
example, the AFFH study identified the lack of
available rental housing for lower-income
households as a contributing factor for
households experiencing or are at-risk of
homelessness. The Housing Element contains
programs that, when implemented, would
begin to address the identified factors,
including:
-PROGRAM H4.1: Develop
Anti-Displacement Programs for the
Old-Town Newark Specific Plan Area.
-PROGRAM H4.3: Develop a Just Cause
APPENDIX D PUBLIC COMMENT D-78
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Eviction Ordinance
-PROGRAM H4.8: Connect Residents with
Foreclosure assistance.
-PROGRAM H5.1: First-Time Homebuyer
Assistance
-PROGRAM H5.2: Affordable Housing
Development Programs
-PROGRAM H5.3: Public Lands for dedicated
affordable housing.
-PROGRAM H5.4: Affordable Housing
Overlay Zone
15. Pat Callaway
There has been opposition to Area 4 development
and I am confused by your responses. Has Area 4
been scrapped or not?
The Sanctuary West Project was approved by
the Newark City Council in November 2019. A
Development Agreement that sets the terms,
conditions, and requirements for the
developer and the city was previously
approved in 2015. The Development
Agreement is still in place, and the developer
intends to proceed with residential
development at some point in the future.
Sanctuary West is not identified as a site
needed to achieve the city’s Regional Housing
Needs Allocation (RHNA) goal of 1,874 units
within the 2023-2031 period. However, per
the Development Agreement, the developer
may still proceed with the project. Newark
contains many sites that are zoned for
residential uses and could be developed as
housing but have not been identified in the
2023-2031 Housing Element’s sites inventory.
Should Sanctuary West or any other site
zoned for residential use be developed with
housing units, the city would count these units
as progress toward meeting our RHNA goal.
APPENDIX D PUBLIC COMMENT D-79
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16. Krisie Knutson Those house are ugly , can’t you make some pretty houses
Noted.
APPENDIX D PUBLIC COMMENT D-80
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COMMENT LETTERS
Comment 1 Carina
Rodriguez
After reviewing the Draft document, my biggest concerns are:
1) Newark's continuing to infringe on the marshes and wetlands around our city.
This is a large environmental issue and I saw very little mention of this in the housing plans. However, the city continues to approve housing developments on these natural lands. This will especially be an issue as climate change continues to wreak havoc on us - I do not want the city to be put in a situation where we have to use tax dollars to help those who ignorantly purchased homes on these wetlands and marshes. Especially when the lands should have never been built on in the first place.
2) I do not want the city of Newark to become a haven for low income housing.
While we should open our city to new residents - low income housing invites low income individuals who will not be contributing a significant amount in taxes. Some are indeed hard workers and have been beaten down by the systemic failures of our city, county, state, and country, but some have no interest in doing anything to help themselves and will just suck up the free resources paid for by taxpayers. Yes, we do need low income housing to assist some in our community. However, we should not accept a large percentage of this low income housing and rather have it spread out throughout the county of Alameda and the Bay Area.
3) Lastly, there are many apartments, townhouses, and duplexes that are completely run down and look absolutely awful. These can be found on Newark Blvd across the street from Newark Community park and Cherry towards Thornton. This housing looks abysmal and it's sickening that landlords are allowed to rent these apartments at top dollar while they are clearly falling apart and have made no investment in keeping them up to a basic, human level.
Before we begin to build more housing, we need to look at this housing and bring them up to a livable standard for those currently living in the city. Let's fix our home city first before we begin building more housing that may eventually look as awful as this housing on Newark Blvd. and Cherry. 2 Taran Singh Area 3 and Area 4 plan of building 469 homes an environmental disaster. The City of Newark cannot solve the housing problem by 500 odd homes on our wetlands. I urge the city to revert the development plan for Area 3 and Area 4 and let them be a safe abode for our flora and fauna. Overall, I think the City needs to get denser in areas close to the 880 corridors and provide connectivity to BART/Transit.
3 PAMELA
ROUSH
Please do not build in Newark Area 4. That is a flood zone and it will only get worse. Please, please reconsider building in Area 4. Thank you. 4 Andrea
Heckman
I'm very concerned about development in the Area 4 shoreline because of it's importance to the ecosystem and protecting our existing development from future flooding. It seems imprudent to build on an area which is expected to need massive alteration and protection from future sea level rise. Makes no sense to develop housing where future disaster is predictable.
APPENDIX D PUBLIC COMMENT D-81
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5 Matt Francois We are submitting these comments on behalf of our client, Integral Communities, the proponent of the Mowry Village project. We write to request certain technical corrections and clarifications to the draft Housing Element. For instance, the reference to 398 built single family units in Area 3, Sub Area B (on page 104) should instead refer to 386 units. Additionally, the reference to the Mowry Village project (on page 105) refers to the site as being within Area 3 when it is located within Area 4; please also correct the location of the Mowry Village project in the last paragraph of this section. Finally, also in the last paragraph of this section, please clarify the intent about retiring the Area 3 & 4 Specific Plan after action on the Mowry Village project as it is anticipated that the Specific Plan would continue to be relied on to make consistency determinations for the Mowry Village and other projects. 6 Carol Drake Newark Area 4 is not a good choice for development.
Wetlands sequester carbon, store floodwater, and filter nutrients and sediment from water.
Already included in the expansion boundaries of the Don Edwards SF Bay National Wildlife Refuge, Area 4 provides an unparalleled opportunity to restore wetlands and other wildlife habitat, while creating a buffer against sea level rise.
Newark should focus on infill development instead.
It could utilize existing neighborhoods and major development opportunities such as revitalizing NewPark Mall, which could provide 1,519 housing units, and smaller projects already planned in and around Old Town Newark. Building in these developed areas would help place housing near job centers, reducing vehicle miles traveled and road congestion.
Comment 7:
From: Nabe Newark <nabenewark@...>
Sent: Tuesday, March 21, 2023 5:23 PM
To: Steven Turner
Cc: Art Interiano; Carmelisa Lopez; Joseph Balatbat; David Benoun; Lenka Hovorka Subject: Re: City of Newark Virtual Community Meeting - Draft Housing Element March 22 at 7:00 PM
Hi Mr. Turner, thank you for including me in the distribution.
I am unsure if I will be able to join the meeting tomorrow, therefore please find 2 comments from me a fter reading this fantastic work by the city staff:
I was very happy to see that you mentioned working with Newark Unified School District in the draft H ousing Element, Policy H2.4
I want to share some recent news articles which should help support this idea within Newark.
Affordable teacher housing development in Los Gatos 'move‐in ready' (mercurynews.com) APPENDIX D PUBLIC COMMENT D-82
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Report: Silicon Valley housing crisis linked to declining school enrollment (sanjosespotlight.com) News – Support Teacher Housing
Affordable teacher housing to be built in Palo Alto – The Talon (lahstalon.org) Other cities in the Bay Area have helped their school districts address the missing housing for teaching st aff and I think Newark should also partner with NUSD to do something similar. I loved the creative idea y ou had shared during our chat at the after party of Mayor Hannon's swearing in ceremony late last year.
After housing, the next big expense for low income residents tends to be transportation.
While our Pedestrian & Bicycle Master Plan was approved in Feb 2017, we haven't made massive strid es in making the overall vision in that plan come true.
Bike lanes will not only improve accessibility to local employers: restaurants, gas stations, retail stores, Home Depot, Amazon etc. but also upcoming city centers such as NewPark Place and might even spar k Old Town into life. The other thing is, bike lanes will benefit residents of all income levels.
I saw that the number 1 response to Q.9 of the Public Engagement and Input Survey with 33% respon dents was public infrastructure including bicycle lanes.
Therefore it would be great if the Housing Element had a specific call out to pedestrian and bicycle infra structure vs. the single specific mention on Pg. 128.
I think exploring ways to align the relevant parts of the Housing Element more closely with the Bicycle E lement will help us capture this once in a decade opportunity to shape the future of housing in Newark by the handle bars!
Regards,
Namit
P.S. From the Needs Analysis of the Bicycle Master Plan, Pg.29:
"Newark has a great deal of potential for growing its bicycle network and safely and comfortably attra cting new bicycle trips with its temperate climate, flat terrain, growing on‐street facilities, system of lo w volume streets ideal for casual cyclists, and access to trails and recreation areas.
However, bicycling today can be difficult in Newark despite the growing interest and number of bicyclists . Heavy traffic, high traffic stress bikeways, and a lack of continuous bicycle facilities on Newark’s major arterials, particularly on north & south routes, remain significant challenges for attracting new riders." On Thu, Mar 16, 2023 at 4:49 PM Steven Turner <[email protected]> wrote:
Dear City Council, Planning Commission, and Community Development Advisory Committee‐ Community Development staff and our consultants are hosting a virtual community meeting about the 2023‐2031 Draft Housing Element on Wednesday, March 22, 2023, from 7:00‐8:30 PM. You are certainl y welcome to attend and participate.
We ask participants to register for the meeting with this link: Meeting registration. After registering, y ou will receive a confirmation email about joining the meeting.
APPENDIX D PUBLIC COMMENT D-83
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Comment 8:
From: Klaustermeier, Sarah
<[email protected]> Sent: Friday, March 24, 2023 7:46 PM
To: Steven Turner
Cc: Klaustermeier, Sarah
Subject: RE: Newark's Draft Housing Element - NewPark Place Specific Plan Residential Units Steven,
I reviewed the draft Housing Element and had one comment specific to Phase A. The breakdown of income levels in Table C-1 is different than what is approved in our Affordable Housing Agreement.
Please see screenshots below:
Affordable Housing Agreement:
APPENDIX D PUBLIC COMMENT D-84
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Sarah Klaustermeier
Sr. Director, Development| Commercial
Development
From: Steven Turner <[email protected]>
Sent: Friday, March 17, 2023 1:21 PM
To: Klaustermeier, Sarah <Sarah.Klaustermeier@...>
Subject: Newark's Draft Housing Element ‐ NewPark Place Specific Plan Residential Units CAUTION: EXTERNAL MAIL! Do not click links, open attachments or reply, unless you recognize the sender’s email address and know the content is safe! If unsure use the Report Phishing Button located in the ribbon.
Hi Sarah‐ I want to let you know that the city has prepared our Draft 2023‐2031 Housing Element for p ublic review. We have a dedicated website where the documents can be reviewed, including an executi ve summary and the complete draft document: www.newarkhousingupdate.org The Draft Housing Element identifies sites through the city that has the appropriate land use and zoning that would allow residential development over the next eight years. This includes sites within our specifi c plan areas, including the sites that allow residential as permitted uses in the NewPark Place Specific Pl an. The entitled Phase A site is identified as a pipeline project site and the other sites anticipated for ho using that surrounds the mall are also identified. Here is a map that illustrates these housing sites (the p APPENDIX D PUBLIC COMMENT D-85
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arcel lines likely don’t reflect the approved vesting tentative map, but we can update this map). The nu mber of units identified for this area totals 1,519 units, consistent with the specific plan.
Development of 1,519 units is not specifically required during the 2023‐2031 period, but the appropri ate land use and requirements are in place to accommodate that development if requested.
Newark was able to identify enough sites at the right densities throughout the city to exceed our Regio nal Housing Needs Allocation. We have also projected the number of units that could be developed at various income levels for the sites. See Table C‐1 for more information.
The initial public review period runs through March 27. We will then send it to the State of Californ ia Housing and Community Development Department for their review, comments, and edits in earl y April. We expect to revise the housing element in June/July to incorporate all the necessary edits before public hearings are scheduled with the Planning Commission and City Council later in the su mmer.
Paul Peninger and his team are the city’s primary consultants who prepare the draft. Paul and I w ould be happy to discuss the housing element with you and answer questions.
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Thanks, Sarah,
‐‐Steven
Comment 9
March 27, 2023
RE: Housing Element Policy Recommendations for Climate Resilience & Fair Housing Dear Mayor Hannon, City Council, and Planning Staff, The undersigned organizations and individuals are excited to participate in Newark’s Housing Element process. We write to offer feedback on Newark’s Draft Housing element for the sixth cycle.
This update is an opportunity for Newark to make sure that high resource and racially segregated neighborhoods take on their fair share of the City’s housing needs, particularly for lower income residents who are disproportionately people of color. As your housing element notes, the majority of Newark residents are in housing that is either unaffordable or does not meet their needs. In particular, the Latine community experiences high levels of overcrowding and above average spending on housing. The City must ensure that all, regardless of race or income, can enjoy safe, stable, and accessible homes located either near jobs or transit (bus as well as BART) and on sites that are clean and suitable for development.
We are glad to see many great policies and sites that promote infill and active transportation.
We also appreciate Newark going above the buffer recommendations for realistic zoning capacity. Among the sites we’re excited about is the Newpark project which will build medium density units on parking lots. This project is a perfect example of infill with access to AC Transit lines to BART.
We also want to commend the city for Policy H6.7: Residential Development in the FloodPlain.
We continue our opposition to the Sanctuary West project. We are glad that the city recognizes that such developments are not in the interest of Newark residents nor the prudent fiduciary responsibility of the council and staff. In an era where our communities are facing the consequences of climate change and sea level rise, each community should be actively assessing how it will ensure future developments and infrastructure will be resilient to flood risk without adversely impacting existing residents and the environment. Building in Area 4 baylands APPENDIX D PUBLIC COMMENT D-87
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would both greatly increase flood risk across the city, and also squander the opportunity to utilize these lands as a valuable flood buffer to protect the community from flooding and sea level rise, while also providing improved natural wildlife habitat and increased outdoor access opportunities for residents. Additionally, since there is broad community opposition from both environmental and pro-housing organizations in the area, building here has a high chance of community pushback which could delay the project to outside the planning period.
We strongly recommend updating your Climate Action Plan which is now 13 years old in order to implement mitigation measures for water level rise (both sea level rise and groundwater rise) and to reduce greenhouse gas (GHG) emissions. We also recommend adding a policy to restore wetlands in order to maximize carbon sequestration and protection from sea level rise.
Program H3.5: Parking standards study can be strengthened to commit to reducing parking minimums. A study from UC Berkeley’s Terner Center found, “the presence of structured parking added nearly $36,000 per unit.” The Draft Housing Element notes that Newark has higher parking1 minimums than neighboring jurisdictions. Parking, especially covered parking, significantly increases the cost of housing developments and uses space for cars rather than for people. In order to combat climate change we know that we must reduce our reliance on cars and fossil fuels. By prioritizing land for people rather than cars we can address the housing crisis and GHG reduction goals. Due to this higher level of parking and its cost, we strongly urge you to commit to reducing the amount of required parking to no more than 0.5 spaces per residential unit, and zero in transit-adjacent areas.
Program H2.1: Encourage new middle-density housing with SB 9 and SB 10. While this is a laudable direction for the city to go to encourage housing abundance throughout the city, it could be strengthened with a few more objective outcomes for the program. (1) The SB 9 ordinance should not reduce the buildable envelope below what an underlying single-family zone allows. (2) Missing middle zoning should allow at least 4 units on at least 80% of single-family lots—not merely legal as density, but practical in terms of development standards.
See the Portland Residential Infill Program for a possible direction where buildable envelope is increased the more units are planned on the lot. (3) No areas should be exempted from missing middle except based on floodplain, fire risk, or other major public health / ecological risks. (4) Required parking should continue to be no more than 0.5 spaces /unit, or zero near any bus line, as the major space requirements of off-street parking reliably kills missing middle.
As we’ve mentioned, we oppose site number 2: Sanctuary West because of its location on baylands that are expected to see a nearly two feet rise of water levels in less than 50 years. We continue to urge you to remove this from your site list.
To support our vision for Newark, Greenbelt Alliance and other partnering organizations have crafted a go-to guide for accelerating equitable adaptation to the climate crisis; The Resilience Playbook. The Playbook brings together curated strategies, recommendations, and tools to support local decision makers and community leaders wherever they are in their journey.
We look forward to continuing to engage with Newark and the community on how this vital work can move forward in the new year.
Sincerely,
APPENDIX D PUBLIC COMMENT D-88
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Victor Flores, East Bay Resilience Manager,
Greenbelt Alliance
David Lewis, Executive Director
Save The Bay
Maxwell Davis and the 2500 members of East
Bay for Everyone
1 https://ternercenter.berkeley.edu/research-and-policy/ab-1401-residential-parking-requirements/ Comment 10
The City of Newark received the following comment as a form letter from 72 individuals. A full list ofthe individuals follows the letter.
To: Steven Turner
Subject: Remove Sanctuary West from the Newark Housing Element Steven Turner,
Dear Mayor Hannon, Vice Mayor Collazo and Newark City Councilmembers, Thank you for putting together a robust Housing Element draft. This is a once in a decade moment for Newark to make pivotal progress on climate change and fair housing by developing a comprehensive housing strategy that builds housing in existing neighborhoods, while ensuring the long-term climate resilience of the city by protecting protecting valuable open space along the shoreline as wildlife habitat while providing community resilience as a flood buffer from sea level rise.
I am writing to you today to implore you to remove Newark Area 4 (“Sanctuary West”) from your housing site inventory. This is not a good place to build housing and should not be how Newark meets a significant portion of its housing requirement. Newark Area 4 is almost entirely within a flood zone, and the site is anticipated to be almost completely inundated with just 1 meter of sea level rise. Additionally, new studies show that development of Area 4 could cause flooding for other shoreline communities in the Bay Area.
Developing this site will increase flood risk to current and future residents and cause catastrophic financial issues to the city in the future.
As evidenced by recent rains, Newark is already experiencing flooding and if Area 4 is developed, flooding will only increase. Newark has the capacity within the existing urban areas to meet its RHNA goals without putting future and current residents at risk.
Further, the wetlands and wetland restoration potential of Newark Area 4 should be embraced for the numerous important benefits they provide. Wetlands not only protect the city from flooding and provide wildlife habitat, they also clean our Bay waters, and have been demonstrated to be one of the most powerful tools in nature for fighting climate change, by sequestering carbon even more efficiently than our forests. We desperately need to protect and restore all the San Francisco Bay wetlands we can, and Newark has an incredible opportunity to support this regional goal.
APPENDIX D PUBLIC COMMENT D-89
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We strongly urge Newark to become a climate-forward city by focusing on infill growth in existing neighborhoods - rather than putting housing in an undeveloped shoreline flood zone that should be permanently protected as a wildlife habitat and as a valuable buffer to protect the community from flooding and sea level rise.
Thank you,
[Name]
List of Individuals who sent the comment form letter:
● Neelam Noorani ● Andrea Resendiz ● Cassandra Jauregui ● Jonathan Coreas-Diaz ● Victoria Ornelas ● Christopher Sulots ● Jean Mccauley ● Nael Mohammad ● Jaycee Moriguchi
● Marissa Hernandez ● Oscar Pena ● Kurt Harvey
● Ashi Kodi Kodi ● Lauren Farias ● Christina Johnson
● Susana Real ● Kaitlyn Fregoso ● Timothy Lee
● Marilyn Painter ● Belle Farias ● Nazim Haffaf
● Jesus Jimenez ● Kamilah Arteaga ● Arianna G.
● Agustina Maradona ● Eden Kidd ● Michael Brazil
● Dakota Sierras ● Jaime Arredondo ● Allysia Irwin
● Alyssa Lopez ● Anthony Medina ● Janice MacKenzie
● K. Encarnacion ● Vaidehi Sharma ● Amanda C.
● Analeez Iniguez ● Lyndie Chiou ● Shawn Bean
● Lauren Arreguin ● Wendy Chou ● Amanda Cordoba
● Tia Triplett ● Justin Burks ● Teresa Pinto
● Kassandra Vega ● Vanessa Nunez ● Marina Montes
● David Strand ● David Alexander ● George Flint
● Monika Strand ● Malalai Mayar ● Katherine Roberts
● Timmy Thach ● Diane Petersen ● Thalia Lubin
● Katelyn Costa ● Maia Rodriguez ● AJ Cho
● Jasmine Sandhu ● Raul Maldonado ● A.F. Shayne
● John Oda ● Remi Tan ● Joan Starr
● Ben Keller ● Kermit Cuff ● Maxwell Davis
● Cyril Bouteille ● Sarah Bell ● Shaina
Chemparathypatagonia
Comment 11
March 27, 2023
Transmitted Via Electronic Mail via the City Clerk
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Steven Turner, Community Development Director
37101 Newark Blvd.
Newark, CA 94560
Email: [email protected]
RE: Public comments by San Francisco Baykeeper on Newark’s Draft Housing Element.
Dear Mr. Turner,
I write on behalf of San Francisco Baykeeper (“Baykeeper”) in opposition to the City of Newark’s inclusion of the Sanctuary West Project (also commonly known as “Area 4”) in its Draft Housing Element. Baykeeper submits these comments on behalf of approximately 5,000 members and supporters who live and recreate in and around the San Francisco Bay Area. Together, our mission is to defend San Francisco Bay from the biggest threats and hold polluters and government agencies accountable to create healthy communities and help wildlife thrive. Our team of scientists and lawyers investigate pollution via aerial and water patrols, strengthen regulations through science and policy advocacy, and enforce environmental laws on behalf of the public.
It is discouraging to see the city continuing to recommend and approve housing at Area 4.
Instead of allowing this area to be used as a natural barrier to mitigate sea level rise (SLR) and groundwater inundation as climate impacts increase, moving forward with development will expose more than a thousand new residents to SLR and put hundreds of millions of dollars of property at risk. With only about ten percent of the original wetlands remaining around San Francisco Bay, keeping these natural bufferlands is essential to having a resilient community and allowing shorelines to adapt in the midst of climate change.
In addition, importing fill and paving over Area 4 would destroy restorable diked Baylands and harm wildlife habitats for over a dozen special-status species. This includes the endangered Salt Marsh Harvest Mouse, endemic to only San Francisco Bay’s marshes which are increasingly threatened with the prospect of development. Furthermore, fragmenting and degrading the existing wetlands in Area 4 will also threaten pup rookeries for harbor seals.
The scientific community has recommended Area 4 as a high priority for protection and restoration of wetlands and upland habitat in order to support San Francisco Bay wildlife species and help them adjust to rising sea levels. Congress has already authorized lands such as Area 4 to be added to the Don Edwards SF Bay National Wildlife Refuge. We urge you to follow the guidance of the region’s scientific community and prioritize protecting and restoring this land rather than development in Area 4 as planned in your current Draft Housing Element.
During the January 2023 King Tides, drone footage revealed just how much surface water already occupies the site. These images give a glimpse of what this site will look like under one foot of SLR. Seeing as this site is projected to have two feet of SLR by 2050, it is obvious why this APPENDIX D PUBLIC COMMENT D-91
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is not a good site to build housing or degrade more wetland habitat.
Jan. 22, 2023, King Tides at Area 4 Photo credit: Carin High Lastly, sustainable development comes at the intersection of economic, social and environmental capitols. Area 4 development only looks at the economic benefit to build.
However, if natural capitol was also part of the equation, one would see how many benefits this land offers: greenhouse gas sequestration, nature based multi-benefit adaptation solutions to SLR, open space for community members to enjoy, and biodiversity to ensure a healthy Bay.
Staff, we implore you to remove the Sanctuary West Project from suitable housing in the 6th cycle of Newark’s Housing Element. Follow the advice of the experts and protect these wetlands to, in turn, protect your community against climate change impacts.
Thank you for the opportunity to comment on this Draft Housing Element. Please reach out to Aundi Mevoli at aundi@... with any questions.
Sincerely,
Aundi Mevoli
Field Investigator and Policy Advocate San Francisco Baykeeper APPENDIX D PUBLIC COMMENT D-92
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ADDITIONAL COMMENTS RECEIVED DURING HCD REVIEW PERIODS
Comment 12 David Song I received a letter from city of Newark, regarding a piece of land that I own. 37079 Ash street, APN: 92-127-31. The letter stated that my property has been identified as a site that could be developed with residential units, and well suited for development. I have previously tried to discuss the development of this site with the planning department multipe times, with no success.
With this new initiative from the city, what kind of incentive does the city provide to owners to develop this site? Higher density? Lower permit fees? Faster approval? Less red tape?
After reading through the Housing Element report, I still could not figure out how does that report relate to my property and its potential for development.
It would be nice for the city planner to sit down with me and explain what kind of incentives the city provides to the development of my site.
I am more than happy to work with the city to develop this site and provide more housing opportunities to medium and low income families.
Best
David
Comment 13 Rishika Rawat
I was wondering where I could find a pdf of the Newark Safety Element.
Comment 14 Alyssa Lopez Hi, I was wondering if there is any action being taken to invest in some programs such as a first-time buyers programs for Newark Residents, or a low-income based programs. If so, I’d like to get more information or be interested in investing some input
Thank you!
Comment 15 Pat Callaway There has been opposition to Area 4 development and I am confused by your responses. Has Area 4 been scrapped or not?
Comment 16 Krisie Knutson
Those house are ugly , can’t you make some pretty houses APPENDIX D PUBLIC COMMENT D-93
Program Guidelines 4.24.26 1
City of Newark
Down Payment Assistance
Loan Program Guidelines
Program Guidelines 4.24.26 2
SECTION 1. INTRODUCTION 4
SECTION 2. DEFINITIONS 4
SECTION 3. APPLICANT ELIGIBILITY 12
SECTION3.1 HOUSEHOLDINCOMEREQUIREMENTS 12
SECTION 3.2 FIRST-TIME HOMEBUYER ELIGIBILITY 14
SECTION 3.3 HOMEBUYER EDUCATION 15
SECTION 3.4 MORTGAGE PRE-APPROVAL 15
SECTION 3.5 TITLE AND LOAN REQUIREMENTS 15
SECTION 3.6 ELIGIBLE HOMES 16
SECTION 3.7 OWNEROCCUPANCY REQUIREMENT 16
SECTION 3.8 FRONT-END RATIO AND BACK-END RATIO REQUIREMENTS 16 SECTION 3.9 OCCUPANCY LIMITS 18
SECTION 3.10 HOME& PEST CONTROL INSPECTION REPORTS 19
SECTION 4. LOAN TERMS 20
SECTION 4.1 LOAN TYPE 20
SECTION 4.2 MAXIMUM LOAN AMOUNTS 20
SECTION 4.3 INTEREST RATE 21
SECTION 4.4 SHARE OFAPPRECIATION 21
SECTION 4.5 BORROWER CONTRIBUTION 21
SECTION 4.6 ELIGIBLE USE OF FUNDS 22
SECTION 4.7 INELIGIBLE USE OF FUNDS 22
SECTION 4.8 DOCUMENTATION AND SECURITY 22
SECTION 4.9 PAYOFF REQUESTS 22
SECTION 4.10 LOAN DEFAULT 23
SECTION 5. MORTGAGE LOAN RESTRICTIONS 23
SECTION 5.1 FIRST MORTGAGE LOAN 23
SECTION 5.2 ADJUSTABLE-RATE MORTGAGE RESTRICTION 23
SECTION 5.3 MAXIMUM TOTAL LOAN TO VALUE RATIO 24
SECTION 5.4 THIRD-PARTY CREDITS AND CONTRIBUTIONS 24
SECTION 6. REFINANCE/OTHER LIENS POLICY 24
Program Guidelines 4.24.26 3
SECTION 6.1 REFINANCING FIRST MORTGAGE LOAN 24
SECTION 6.2 OTHER LOANS/LIENS POST ESCROW 24
SECTION 6.3 REQUEST CITY AUTHORIZATION 25
SECTION 6.4 SUBORDINATION OF DPAL LOAN 25
SECTION 7. GENERAL REQUIREMENTS 25
SECTION 7.1 TITLE INSURANCE POLICY 25
SECTION 7.2 NON-DISCRIMINATION 25
SECTION 7.3 MAINTENANCE 26
SECTION 7.4 HAZARD OR PROPERTY INSURANCE 26
SECTION 7.5 NO RENTING 26
APPENDIX 1:HOUSEHOLD INCOME ANDASSETS 27
A. INCOME INCLUSIONS 27
B. INCOME EXCLUSION
S 28
C. ASSET CALCULATIONS 29
D. ASSET INCLUSIONS 29
E. ASSET EXCLUSIONS 30
APPENDIX 2: LOAN REPAYMENT CALCULATION 31
Program Guidelines 4.24.26 4
SECTION 1. INTRODUCTION
Thank you for your interest in the City of Newark Down Payment Assistance Loan Program for first time homebuyers (the “DPAL Program”). This Program provides down payment assistance to eligible first-time homebuyers in purchasing a home within the city limits of Newark. These guidelines contain the specific requirements for eligibility and ongoing Program compliance. The City of Newark will review and update these guidelines from time to time to reflect changes in the market and better meet the community’s needs.
SECTION 2. DEFINITIONS
Accessory Dwelling Unit: An Accessory Dwelling Unit (ADU) is a secondary housing unit that is located on the same property as a primary residence. It may be detached from the main home or attached to the main home.
ALTA Policy: A type of Title Insurance provided by title companies in the American Land Title Association. Protects against everything covered in a CLTA policy, plus additional risks such as easements or encroachments not shown by public records, or conflicting boundary lines and water rights.
Amortizing Loan: A loan where the principal of the loan is paid down over the life of the loan. Fully amortizing payment refers to a periodic loan payment, where if the Borrower makes payments according to the loan's amortization schedule, the loan is fully paid off by the end of its set term. If the loan is a fixed-rate loan, each fully amortizing payment is an equal dollar amount. Negative amortization is an increase in the principal balance of a loan caused by making payments that fail to cover the interest due.
Applicant: A Household that has submitted an application for the City of Newark Down Payment Assistance Loan Program.
Area Median Income (AMI): The midpoint in the income distribution within a specific geographic area. The area median income adjusted for Household Size is published annually by the California Department of Housing and Community Development.
Arm’s Length Transaction: Transaction in which the buyer and seller act independently and with no interest in the other's benefit.
Assets: Items of ownership which can be converted into cash; total resources of a person or business, such as cash, notes and accounts receivable, securities, inventories, goodwill, fixtures, machinery, or real estate. See Appendix 1 for the types of Assets that are counted and not counted for the purpose of DPAL Program eligibility.
Program Guidelines 4.24.26 5
Back-End Ratio: Ratio of the amount of monthly income that will go toward paying Housing Expenses plus all monthly debts, post-purchase, for a DPAL Program Applicant, at the time their application is submitted.
Below Market Rate (BMR) Homes: A BMR home is priced to be affordable to a Household that is at or below certain designated Income Levels. BMR homes have restrictions recorded against them to ensure they remain affordable for a set period. If they are resold before that time expires, they are sold for a BMR Affordable Sales Price and the time limit is reset for the new owner.
BMR Affordable Sales Price: The City and developer will enter into an agreement and establish a Low to Moderate Income limit and the Maximum Sale Price for the BMR Unit(s). The price shall be a purchase price which is affordable to a Low to Moderate Income Household, as adjusted by the assumed household size which is determined based on the number of bedrooms in the BMR Unit. For each BMR unit in a project, the City establishes an Affordable Sales Price for which the BMR unit will be sold. The Affordable Sale Price is known as the BMR Purchase Price.
Beneficiary: For loans secured with a Deed of Trust, the beneficiary named in that deed typically refers to the lender.
Borrower: Refers to an applicant for the Program that has been approved for a loan or has obtained a loan from the Program.
CalHFA: The California Housing Finance Agency.
Covenants, Conditions and Restrictions (CC&Rs): A document that controls the use, requirements, and restrictions of a property that is part of a Homeowners Association.
City: The City of Newark.
City Staff: An employee or designee of the City of Newark responsible for actions related to the program or these guidelines.
CLTA Policy: A type of Title Insurance provided by title companies in the California Land Title Association. Protects homeowners from financial loss associated with title fraud or forgery, including recorded claims on the title and unpaid taxes by a previous owner. Offers less coverage than ALTA policies.
Combined Loan to Value (CLTV): The ratio between the amount of all indebtedness secured by a property to the lesser of the appraised value or the purchase price of that property.
Program Guidelines 4.24.26 6
Debt-to-Income Ratio: See Back-End Ratio and Front-End Ratio.
Deed and Note: Shorthand for a Deed of Trust and its accompanying Promissory Note.
Deed in Lieu of Foreclosure: A deed to real property accepted by a lender from a defaulting Borrower to avoid the necessity of foreclosure proceedings by the lender.
Deed of Trust: A document used to establish the security for a loan, including for mortgage loans. Typically, uses the property to secure repayment of a loan or other obligation. Once fully executed, notarized, and properly recorded, the Deed of Trust becomes a Lien against the property.
Displacement by a Proposed Residential Project: Having moved out of a rental property located in the City of Newark due to a new residential project being proposed at the rental property site. For displacement-based priority/preference, the Applicant must currently meet the criteria at the time of submitting a Pre-Application. Evidence of displacement from a rental property in the City of Newark due to a proposed residential project will be required.
Domestic Partnership: A partnership formally registered with the California Secretary of State. As of January 1, 2020, all couples that are eligible to be married, regardless of sexual orientation or age, may be registered as Domestic Partners.
Down Payment: A down payment is a sum a buyer pays upfront when purchasing an expensive good such as a home or car.
Fair Housing: State or federal laws that govern the fair and unbiased treatment of buyers and renters when selling or renting a house.
Fair Market Value (FMV): The value of a property based upon the determination of an appraisal created by a qualified appraiser holding a California Certified Appraisal License (issued by the Office of Real Estate Appraisers), preferably with a Member of the Appraisal Institute member designation (issued by the Appraisal Institute), and with experience valuing similar properties in the Bay Area pursuant to Uniform Standards of Professional Appraisal Practice, the cost of which shall be borne by the Applicant. After reviewing such appraisal, the City shall have the option, at its sole expense, to select an appraiser to conduct an additional appraisal of the Residential Unit. If the two appraisals are not in agreement as to the value of the Residential Unit, the amounts determined by the appraisals will be averaged to determine the Fair Market Value.
First Mortgage Loan: the primary lien securing the First Loan on the home which has priority over all other liens or claims on the Residential Unit in the event of default.
Program Guidelines 4.24.26 7
First-Time Homebuyer: Individuals that have not owned a Primary Residence in any state or country during the three-year period before applying for the DPAL Program.
Exceptions to this definition include:
a) An individual who previously owned a home with a former spouse or registered domestic partner during their marriage or domestic partnership.
The Applicant must submit a recorded divorce decree or Notice of Termination of Domestic Partnership.
b) An individual who has owned a principal residence that was not permanently affixed to a permanent foundation, according to applicable regulations; c) An individual who has owned timeshares;
d) An individual who was a loan cosigner from a previous real estate transaction;
e) An individual who has appeared on title for property solely in the capacity as a trustee for a trust, where the trustor is living at the time and in the residence;
f) An individual named as a beneficiary of a trust that includes a housing unit amongst the trust assets, but only if the trustor is living at the time and occupying the residence.
Front-End Ratio: An individual's monthly Housing Expenses divided by their monthly gross income, at the time their application for the DPAL Program is submitted. It is evaluated in conjunction with the back-end ratio.
Gross Household Income: All income, before any deductions are taken from whatever source derived, of all adult Household members (18 years of age and older), whether such income is exempt from federal income tax. Refer to Appendix 1 for a list of income sources and exceptions.
HCD: California Department of Housing and Community Development.
Homebuyer Education: A HUD-approved course designed to provide basic education for First-Time Homebuyers. The date on the completion certificate for the class must be no more than one year before the program application is submitted.
Homeowners Association (HOA): A nonprofit association that manages the common areas of a condominium or planned home development. Homeowners pay a fee to the HOA to maintain areas owned jointly.
Household: All those persons—related or unrelated—who will occupy the home they intend to purchase that is associated with their application to participate in the City’s DPAL Program.
Program Guidelines 4.24.26 8
Household Income: Combined anticipated gross income for the 12-month period following date of determination of income for all members of the Household who are 18 years of age or older.
Household Size: Number of persons who will be living in the home that meet the requirements in Section 3.9 Occupancy Limits.
Housing Expenses: Principal and interest on a mortgage loan, including any loan insurance fees, private mortgage insurance, property tax assessments, homeowner insurance, and HOA dues.
HUD: United States Department of Housing and Urban Development.
Income: Anticipated gross income for the 12-month period following date of determination of income.
Income Levels: Income categories determined periodically by HCD based on AMI (Area Median Income) and adjusted for actual Household Size. HCD determines AMIs on a county-by-county basis and Newark uses the Alameda County AMI. To qualify for the DPAL Program, a Household must earn at or below the designated Income Level. a) Moderate Income = 101%-120% of AMI
b) Median Income = 81%-100% of AMI
c) Low Income = 51%-80% of AMI
d) Very Low Income = 50% or less of AMI
Joint Tenancy: The holding of an estate or property jointly by two or more parties, the share of each passing to the other or others on death.
Junior Accessory Dwelling Unit: A Junior Accessory Dwelling Unit is a separate housing unit located within the primary dwelling that is less than 500 square feet, has kitchen facilities and separate access from the main unit to the space.
Lien: A legal hold or claim to keep possession of property belonging to another person until a debt owed by that person is discharged.
Loan Subordination: See Subordination and Subordination Agreement.
Live/Work Unit: A single unit (e.g., studio, loft, one bedroom) consisting of both commercial space or office and a residential component that is occupied by the same resident.
Living in the City of Newark: Occupying and renting, at the time of application and for at least a full six months (180 days) prior to the application date, a bona fide rental dwelling Program Guidelines 4.24.26 9
within the Newark city limits, as evidenced by valid third-party documentation (a lease, a California driver’s license or identification card showing street address (not a post office box) of such residence, current California vehicle registration card, or gas/electric/water bills). For residency-based priority, the Applicant must currently meet the criteria and for at least the past 6 months at the time of submitting a Pre-Application. Evidence of payment of a lease and rental contract for the 6-month period will be required.
Loan to Value: The ratio between the amount of the first mortgage lien against a property to the appraised value of that property.
Maximum Household Income: The maximum combined gross Income that a Household can have, adjusted for Household Size, to be able to qualify for program participation, according to the designated Income Level of the DPAL Program Guidelines.
Monitoring: See Owner Occupancy Monitoring.
Occupancy Limits: Minimum household occupancy is one person or the number of bedrooms, whichever is greater. Maximum household occupancy of a home is determined as follows: each bedroom may have a maximum of two people; one additional person may live outside of a bedroom within the home. The Household Occupancy Limits are applicable if the standards do not violate Fair Housing requirements and comply with any applicable state and federal laws and regulations. See Guidelines in Section 3.9.
Owner Occupancy Monitoring: Program participants are periodically monitored to ensure compliance with the requirement that they occupy the home as their primary place of residence for at least ten months of the calendar year. Upon request, program participants are required to submit a signed and notarized affidavit and Valid Third-Party Documentation such as, but not limited to, a property tax statement or utility bill.
Primary Residence: Program participants must occupy their home as their primary residence, defined as living in the home a minimum of ten months out of the year.
Program: City of Newark’s Down Payment Assistance Loan Program.
Promissory Note: A written promise to pay a specified sum of money to a designated person or to his or her order, or to the bearer of the note, at a fixed time or on demand.
The document is executed by loan recipients and dated concurrently with the Deed of Trust securing the Promissory Note. The Promissory Note establishes the principal loan balance and indebtedness.
Qualifying Household: A Household that meets the requirements listed in Section 3:
Applicant Eligibility.
Program Guidelines 4.24.26 10
Reasonable Accommodation: Accommodations in program rules, policies, practices, or services, when such accommodations may be necessary to afford a disabled person, or a Household with a disabled member, equal opportunity to apply for, as would be available to non-disabled persons or Households in similar circumstances. The requested accommodation must be reasonable, must be reasonably related to the disability of the Household member, and must be necessary to provide the Household with equal access to housing.
Refinance: Getting a new mortgage to replace the original mortgage is called refinancing.
Refinancing is done to allow a Borrower to obtain a better interest term and rate. The first loan is paid off, allowing the second loan to be created. See also Subordination and Subordination Agreement.
Sale: Any voluntary or involuntary sale, conveyance, assignment, or Transfer of ownership of or any interest in the property, including a fee simple interest, Tenancy in Common, Joint Tenancy, community property, tenancy by the entireties, life estate, or other limited estate, leasehold interest or any rental of the residence, or any interest evidenced by a land contract.
Shared Appreciation: Often First-Time Homebuyer loan agreements include a shared appreciation component. In such a loan, when the Borrower pays back the loan, they also pay a certain percentage of the increase in value (the appreciation) of the property, between the date of purchase and the date of the loan payoff.
Short Sale: A Sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by Liens against the property and the property owner cannot afford to repay the Liens' full amounts, whereby the Lien holders agree to release their Lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency.
Subordination: In banking and finance, refers to the order of priorities in claims for ownership or interest in various Assets, such as real property. A first mortgage Lien is given higher priority than a second mortgage Lien and will be paid first. A Lien that is recorded second has second priority and will be paid second, and so forth. In the case of a Short Sale or foreclosure, the order of the Liens is an important issue.
Subordination Agreement: A document which is typically required by a lender if a Borrower wants to Refinance their first mortgage and they have other Liens or mortgages on title. In a subordination agreement, a prior Lienholder agrees that its Lien will be subordinate (junior) to a subsequently recorded Lien.
Tenancy in Common: A type of shared ownership of property, where each owner owns a share of the property. Unlike in a Joint Tenancy, these shares can be of unequal size, and Program Guidelines 4.24.26 11
can be freely Transferred to other owners both during life and via a will.
Title: A legal document evidencing a person's right to or ownership of a property.
Title Insurance: Insurance that protects the lender (lender's policy) or the buyer (owner's policy) against loss arising from disputes over ownership of a property. See also CLTA Policy and ALTA Policy.
Total Household Income: All Gross Household Income and Assets received.
Transfer: See Sale.
Trustee: Holder of legal Title to a property. Typically, a title company processing an escrow will be named as the trustee in the deed(s). The trustee holds the Title as security for a loan (debt) between a Borrower and lender. The equitable Title remains with the Borrower.
Trustor: A trustor named in a Deed of Trust is synonymous with a Borrower.
Valid Third-Party Documentation: Documents issued directly by a public agency, private utility company, taxing entity, creditor, financial institution, school, employer, business, landlord/property manager or certified public accountant on such entity’s own letterhead, verifying one or more eligibility criteria of any Applicant, Co-Applicant, their dependents or other Household members. Such documentation may be verified by DPAL Program staff through direct contact with such agency/issuer by phone, email, or written inquiry to verify accuracy of document’s contents.
Working in the City of Newark: Earning one’s primary source of annual income (salary, wages, commissions) through employment by a Newark employer licensed and permitted by the City, at a primary worksite in the City of Newark; or through operation of a Newarkbased business that is licensed and permitted by the City of Newark. Working in the City of Newark does NOT include volunteer or unpaid work, or self-employment consisting solely of operating a business entity established solely for the purposes of investment in a rental property. Income earned in the City of Newark must be verified by your paycheck stubs, tax returns, and/or other documentation described in the application forms. The Applicant’s qualifying household member must be a person whose name will appear on title for the home purchased with DPAL funds and who will use the unit as their primary residence. For employment-based priority/preference, the Applicant must currently meet the criteria and have met the criteria for at least the past 6 months at the time of submitting a PreApplication. If an applicant works from home either part-time or full-time, employment must be with an employer licensed and permitted by the City at a place of business located within the City limits and verified by the employer.
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SECTION 3. APPLICANT ELIGIBILITY
This Section describes the requirements an Applicant must fulfill to qualify for the DPAL Program. These requirements include limitations on household income, eligible home types, and occupancy limits among others. Other Applicant requirements include meeting specified ratios between Housing Expenses and household income and debt and household income.
SECTION 3.1 City of Newark Preference/Priority Criteria The City of Newark has established a priority system for allocating the limited DPAL funds to eligible households. Priority will be given to income-eligible Applicants based on the priority categories defined in the City of Newark Preference Criteria below. The priority must be met by at least one of the Applicant’s household members that will be listed as owners on title to the subject property for the DPAL Program.
The preference system will be used to establish a ranking of Applicants. Applicants that meet the 1st Priority criteria will be reviewed first, then Applicants who meet the 2nd Priority criteria, and so on and so forth. Preferences will be evaluated at the time of the PreApplication submittal and Application Lottery, and will be verified during the Program Application process. If it is discovered that an Applicant does not meet the preference or lacks evidence that they meet the preference, they will lose their lottery priority ranking number and will be reassigned to the appropriate preference category for which they do qualify and placed at the bottom of the list within that group.
PREFERENCE/PRIORITY CRITERIA
1st Priority
(Displacement
by Proposed
Residential
Project)
At least one of the Applicant’s household members who will be listed as an owner on the title of the property purchased with DPAL funds has been displaced from the City of Newark by a proposed residential project.
2nd Priority
(Live or Work)
At least one of the Applicant’s household members who will be listed as an owner on the title of the property purchased with DPAL funds either lives OR works within the City of Newark.
3rd Priority
(All Others)
Any other qualified Applicant household without regard to displacement, residency, or employment.
Program Guidelines 4.24.26 13
NOTE
The Applicant’s qualifying household member must be a person whose name will appear on title and who will use the unit as their primary residence.
For residency and employment-based preferences, the Applicant’s household member must currently meet the criteria and have met the criteria for at least the past 6 months at the time of the PreApplication submittal.
SECTION 3.2 Household Income Requirements
The total household income can be no greater than 120% of Area Median Income for Alameda County, adjusted by household size, as updated annually based on the State of California Department of Housing and Community Development (HCD) State Income Limits.
Calculating total Household Income is key to determining whether the Applicant(s) is (are) income eligible for a DPAL loan. Total Household Income consists of all sources of income of ALL Household members aged 18 or older who will occupy the purchased property, regardless of dependency or ownership status.
Requirement of a Divorced or Separated Applicant
When determining a household’s Gross Annual Income, the income of an Applicant’s spouse or domestic partner must be included. This applies unless an Applicant is legally divorced or legally separated, or their domestic partnership has been terminated.
Exemptions: If an Applicant or Household member has been divorced, legally separated, or their domestic partnership has been dissolved within the past three (3) years, certain conditions must be met to qualify for an exemption from including the spouse’s or domestic partner’s income:
• Legal Documents: A finalized judgment or order, endorsed by the court, must be provided. This includes:
o Judgment of Dissolution of Marriage
o Order of Legal Separation
o Notice of Termination of Domestic Partnership
• Financial Separation: There must be no ongoing financial connection that is not otherwise verified by the courts between the Applicant and their ex-spouse or exdomestic partner. This includes:
Program Guidelines 4.24.26 14
o No joint assets
o No joint tax filings
Required Documents: Before determining household eligibility, Program Administrator will require a copy of the court-endorsed final judgment or order, with all necessary exhibits, forms, and schedules. These documents must verify details such as:
• Division of assets
o Division of debts
o Spousal support
o Child support, custody, and visitation
These documents must be complete and signed by a judge and entered into the court records.
Applicants whose income from employment has declined in the past 6 months must provide evidence verifying that the change was not voluntary – for example that the Applicant did not quit a job or choose to reduce hours.
More information regarding household income, including what types of income and assets are considered and not considered, can be found in Appendix 1: Household Income and Assets.
SECTION 3.3 First-Time Homebuyer Eligibility
No individual in the household may have owned a Primary Residence in any state or country for past three years. Notwithstanding the foregoing, the following interests shall not, by themselves, disqualify an Applicant from being considered a First-Time Homebuyer:
• Ownership of a home with a former spouse or registered domestic partner during their marriage or domestic partnership. The Applicant must submit a recorded divorce decree or Notice of Termination of Domestic Partnership; • Ownership of a principal residence that was not permanently affixed to a permanent foundation, according to applicable regulations; • Ownership of timeshares;
• Being a loan cosigner from a previous real estate transaction; • Appearing on title for property solely in the capacity as a trustee for a trust, where the trustor is living at the time and in the residence; • Being named as a beneficiary of a trust that includes a housing unit amongst the trust assets, but only if the trustor is living at the time and in the residence.
Program Guidelines 4.24.26 15
SECTION 3.4 Homebuyer Education
Each Household member aged 18 and older who is an Applicant and will appear on the title of the purchased property must attend 8 hours of HUD certified homebuyer education, through a Homebuyer Education Provider. Homebuyer Education workshops cover topics such as: the loan application process, closing costs and escrow fees, recurring housing expenses, refinancing, budgeting, responsibilities of homeownership, home maintenance, and the importance of maintaining good credit. When all required members of an Applicant Household have completed the Homebuyer Education requirement, their Homebuyer Education Provider will issue a Certificate of Completion of Homebuyer Education, which shall be provided to the City as a condition of final loan approval. The Certificate of Completion of Homebuyer Education must have been issued within twelve (12) months from the date of application.
SECTION 3.5 Mortgage Pre-Approval
Applicants are encouraged to shop around to find the best Lender that suits their needs but must choose only one Lender in connection with the DPAL loan. Applicants must submit a First Mortgage Loan pre-approval letter as part of their DPAL application submittal. The pre-approval letter must:
• Name the Borrower and any co-borrowers to the loan;
• Be dated within one hundred twenty (120) days of the Applicant’s application; and • Include a maximum sales price that meets or exceeds the actual sales price of the property to be purchased, a maximum first loan amount, the FTHB loan amount, and any other subordinate loan amount (if applicable).
SECTION 3.6 Title and Loan Requirements
All adult Household members must appear as an owner or co-owner on the property title and must co-sign for any purchase loan for the property, including the City DPAL Loan, with the following exceptions:
• Household members younger than age 24 who are the child of a titleholder who will reside in the housing unit as their primary residence, regardless of being named as a dependent on the federal tax form or a titleholder.
• Legal dependents of titleholders as claimed on the two most recent federal income tax returns or legal minor children of titleholders. Spouses or Domestic Partners are not considered dependents.
Certain exceptions may be granted by the City on a case-by-case basis and in its sole discretion.
Program Guidelines 4.24.26 16
SECTION 3.7 Eligible Homes
Eligible homes include single-family homes, townhomes, condominiums, Accessory Dwelling Units supported under Assembly Bill 1033, and live/work units located in the city limits of Newark.
Housing types excluded from the Program are:
• Multi-unit properties such as a duplex, triplex or other multi-family property; • Properties purchased through a non-Arm’s Length Transaction, with a connection or relationship between the buyer and seller or other parties participating in the sales transaction unless authorized by the City. Approval may be granted by the City on a case-by-case basis and in the City’s sole discretion; • Tenant Occupied Properties, under which any unlawful rental eviction has occurred. • Tenancy In Common ownership units
The list above is not comprehensive and is subject to change at any time at the City’s discretion. The City reserves the right to identify additionally prohibited housing types.
DPAL loan funds may be used for a purchase of Below Market Rate (BMR) units priced for buyers at or below 80% of AMI. In the case of newly constructed BMR units, the BMR Affordable Sales Price must meet the City’s standards for affordability without relying on the DPAL loan. The DPAL loan funds can only be utilized if it’s necessary for the buyer to afford the unit. This ensures that developers cannot adjust pricing to capitalize on the availability of a DPAL loan. Appreciation share on BMR units will be calculated based on the change in the BMR Affordable Sales Price, which will generally be less than the appreciation on comparable market rate units. No more than 10% of the DPAL loan funds will be invested in BMR properties.
SECTION 3.8 Owner Occupancy Requirement
Applicant must agree to occupy the purchased property as their principal place of residence. Everyone on title to the property (per section 3.5 above) and all Household members must occupy the property as their principal place of residence within sixty (60) days of close of escrow. Owner occupancy must be maintained for at least ten (10) months of the calendar year.
SECTION 3.9 Front-End Ratio and Back-End Ratio Requirements Applicants must meet the minimum front-end ratio depending on the Applicant’s household income relative to the Area Medium Income (AMI). A front-end ratio represents the percentage of Housing Expenses (i.e., principal, interest, taxes, insurance, and HOA dues) to household income.
Program Guidelines 4.24.26 17
The minimum required Front-End Ratio is 28%. Applicants receiving a Section 8 homeownership voucher are exempt from the minimum 28% Front-End Ratio requirement.
There is no maximum front-end ratio.
Applicants must also fall under the maximum back-end ratio based on the Applicant’s household income relative to the AMI. The back-end ratio represents the percentage of all debt to household income.
The maximum Back-End ratio is as follows:
• Maximum Back-End ratio requirements of 45% for all households below 120% AMI.
Debts to be included in the Back-End Ratio
Generally, all recurring debt payments, such as installment payments, revolving account payments, lease payments, child support and other loan payments shall be included into the Applicant’s back-end ratio.
• Installment Payments: Installment debts with a remaining term of 10 months or more shall be included to the total back-end ratio.
• Revolving Accounts: Use greater of $10 or 5% of the balance if no payment amount is listed on the credit report.
• Lease Payments: Lease payments must always be included as a debt when determining the total back-end ratio.
• Child Support: Include all child support (including alimony or separation maintenance) obligations with a remaining term of 10 months or more. • Student Loans: Student loans must be included in the Applicant’s liabilities regardless of the payment type or status of payments. If a student loan is in deferment or forbearance at the time of review of the Applicant’s credit report, the Program will use 0.5% of the outstanding balance on the loan on the Applicant’s credit report.
However, if the future scheduled monthly payment amount is available from the lender, the Program will allow this amount to be used. Student loans with a remaining term of ten (10) months or less, or on an income-driven payment plan with a zero $0 payment (as verified through student loan documentation), will be excluded from the total back-end ratio.
• Loans Secured by Financial Assets: When an Applicant uses his/her/their financial assets – life insurance policies, 401(k) accounts, individual retirement accounts, etc. – as security for a loan, the Applicant has a contingent liability. The Program will include this contingent liability as part of the Applicant’s recurring monthly debt obligations when determining the Applicant’s total back-end ratio. A copy of an applicable loan instrument that shows the debt payment shall be included when submitting the DPAL Program Guidelines 4.24.26 18
program application.
• Court-Ordered Assignment of Debt: When an Applicant has outstanding debt reflected on the credit report that was assigned to another party by a court order (such as under a divorce decree) and the creditor does not release the Applicant from liability, the Applicant has a contingent liability. The Program will exclude this contingent liability as part of the Applicant’s monthly debt obligation. A copy of divorce decree shall be provided in the DPAL program application in order to exclude it from the back-end ratio. Exceptions may be granted by the City on a case-by-case basis, and in its sole discretion.
• Open 30-Day Charge Accounts: Open 30-day charge accounts require the balance to be paid in full every month. Open 30-day charge accounts will be excluded from the total backend ratio. However, sufficient funds must be verified to cover the account balance, in addition to any funds required for closing costs and reserves. • Debts Paid by Others: When an Applicant is obligated on a debt - but is not the party who is actually repaying the debt - the monthly payment may be excluded from the Applicant’s recurring monthly obligations. In order to exclude the debts from the Applicant’s total backend ratio, Applicant must submit the most recent twelve (12) months of canceled checks (or bank statements) from the other party making the payments that document a 12-month payment history with no delinquent payments. • Authorized User Accounts: The Applicant must qualify for the DPAL loan with all payments under accounts where there is another authorized user that is not the Applicant unless one of the following applies: • The authorized user credit line belongs to a Co-Applicant on the loan, or • It can be documented someone else other than the Applicant is making the payment. See Debts Paid by Others above for requirements.
SECTION 3.10 Occupancy Limits
Household occupancy limits for purchasing a unit will be based upon Section 503(b) of the Uniform Housing Code, which specifies allowable minimum and maximum household sizes based upon the number of bedrooms in a unit. The minimum occupancy is one person per bedroom. Maximum occupancy of the unit is determined as follows: each bedroom may have a maximum of two people; one additional person may live outside of a bedroom within the unit.
Applying these standards, to purchase a two-bedroom unit, there must be a minimum of two people in the household and a maximum of five. See table below for occupancy limits by unit type:
Unit Type Minimum Occupancy/
Maximum Occupancy
Program Guidelines 4.24.26 19
Studio 1 Person Minimum/
2 Person Maximum
1 Bedroom 1 Person Minimum /
3 People Maximum
2 Bedrooms 2 People Minimum /
5 People Maximum
3 Bedrooms 3 People Minimum /
7 People Maximum
4 Bedrooms 4 People Minimum /
9 People Maximum
All of the following criteria must be present to be considered a bedroom:
• Size: A bedroom must be at least seventy (70) square feet (exclusive of closets, bathrooms, or similar spaces) with no less than seven (7) feet in any horizontal direction.
• Door Window: A bedroom must have a door and window. The window must open to an area which leads either to a street or open space.
• Direct Connection or Bathroom: A bedroom must either: (1) have a direct connection to the living space of the property, OR (2) have a separate bathroom with a toilet and sink, and a bathtub or shower.
A bonus room or finished room will be considered a bedroom if the room meets all the above criteria, regardless of its legalization. This includes the bedrooms in an Accessory Dwelling Unit or as part of a Junior Accessory Unit, or any other part of the property. The number of bedrooms determined according to the DPAL Program Guidelines may differ from the number of bedrooms reflected in the appraisal or public records.
SECTION 3.11 Home & Pest Control Inspection Reports
A “general home inspection” performed by an independent third-party home inspector is required for all properties purchased with DPAL loans. The Borrower, loan officer or real estate agent is responsible for contacting a home inspector to schedule the inspection.
The inspection should include electrical, wiring, plumbing, roofing, insulation, and structural features. Any reported deficiencies that pose an immediate health and safety hazard or code violation must be corrected as a condition to funding of a DPAL loan.
In addition, the City requires a “pest control inspection” report for wood destroying pests and organisms to be conducted by a reputable license holder issued by the California Department of Consumer Affairs and the California Structural Pest Control Board. The Program Guidelines 4.24.26 20
Pest Control Inspection Report cannot be more than 90 days old at the time of submission to Program Administrator. Items listed in Section I of the pest control inspection indicate evidence of active infestation, infection or conditions that have resulted in or from infestation or infection, which generally need to be addressed to ensure that the property has been appropriately treated, and the damage has been repaired for health and safety reasons. It is important to note that the City will not be held liable for any misrepresentation, false claims, or information contained in the inspection reports. The City maintains the right to deny the DPAL loan due to the condition of the property. If the first mortgage lender requires repairs to the property, a copy of the clearance report must be obtained and submitted before close of escrow. All health and safety construction or repairs must be complete at the close of escrow and the home must be ready to occupy.
Escrow holdbacks for construction and repairs up to $10,000 may be permitted at the City’s sole discretion.
SECTION 4. LOAN TERMS
This Section contains information regarding loans provided by the City to qualified Applicants as well as requirements for Borrowers.
SECTION 4.1 Loan Type
The DPAL Loan will be offered as a deferred payment loan. Repayment is required upon the Sale or Transfer of the property, and it will be recorded as a second deed of trust to the First Mortgage Loan. However, per the city’s discretion, it may further subordinate to another Down Payment Assistance Loan, should this loan exceed the DPAL loan amount.
The loan shall be due in full at the end of the 30-year term, or upon Sale, Transfer of the property, an unapproved refinance of the first mortgage, or any Event of Default under the City DPAL loan documents. There shall be no payments due on principal or interest owed during the term of the loan if the Borrower continues to owner-occupy the home and an Event of Default has not occurred. Once the loan is due, the Borrower will be required to pay back the loan principal and the greater of accrued interest or share of appreciation.
See Section 4.10 Loan Payoff and Appendix 2 for more detail.
SECTION 4.2 Maximum Loan Amounts
The DPAL Program includes a tiered assistance system based on AMI levels to determine the maximum loan amount. The amount the Applicant may receive will vary depending on each Applicant’s individual circumstances, however the maximum DPAL loan an Applicant Program Guidelines 4.24.26 21
can receive is based on the following:
• The loan amount for households at or below 120% AMI is capped at $150,000. • The loan amount for households at or below 100% AMI is capped at $200,000.
• The loan amount cannot be greater than the First Mortgage regardless of the tiered assistance noted above.
SECTION 4.3 Interest Rate
The interest rate for a loan from the DPAL Program will be fixed at 3%.
SECTION 4.4 Share of Appreciation
If the property has appreciated in value from the date of purchase to the date of repayment, the Promissory Note and Deed of Trust include Shared Appreciation provisions so that the City recoups a percentage of the profit made from selling the home in direct proportion to the dollars loaned at the time of purchase. The share of appreciation shall be based on the ratio of the original DPAL loan amount to the original purchase price of the property. At the time that the property is sold or the loan is repaid, the City will determine the Fair Market Value of the property (hereafter the “Resale Price”). The Fair Market Value shall be the greater of the actual Resale Price or the Appraised Value at the time of repayment.
However, once the loan is due, the Borrower will be required to pay back the loan principal and the greater of accrued interest or share of appreciation.
The share of appreciation on BMR units will be calculated based on the change in the BMR Affordable Sales Price, which will generally be less than the appreciation on comparable market rate units.
If the property has not increased in Fair Market Value from the date of purchase to the date of repayment, the Borrower shall be obligated to repay the principal amount of the loan along with the simple interest calculation as noted in the Promissory Note.
SECTION 4.5 Borrower Contribution
There is no minimum personal down payment required. A Borrower may borrow up to 100% of the property’s Combined Loan to Value (CLTV). Should a Borrower choose to include a personal down payment, the down payment funds may be from any source other than loan funds, such as the Borrower’s own funds, gift funds, or grants. Any gift funds provided by friends or family to the Borrower must be accompanied by a gift letter acknowledging that the funds are not a loan and do not need to be paid back.
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SECTION 4.6 Eligible Use of Funds
The DPAL Loan can be utilized for down payment only, and funds cannot be used to cover closing costs.
SECTION 4.7 Ineligible Use of Funds
The DPAL Loan cannot be used to pay for improvement and/or repair costs.
The DPAL Loan cannot be used to pay down the First Mortgage principal, debts or liens or to buy down the First Mortgage interest rate. If the Applicant is required by the First Mortgage Lender to pay off debts in order to qualify for the First Mortgage, these items must be paid by the Applicant, and reduced from the maximum assets allowable under the DPAL Program. In such case, the First Lender is required to evidence the need by providing the underwriting documents such as Underwriting Transmittal Summary (Form 1008), and Desktop Underwriter/Loan Prospector (DU/LP) findings. The amount of the debts must match the amount on the Closing Disclosure or Settlement Statement, as applicable.
SECTION 4.8 Documentation and Security
The following documents must be executed by the Borrower to secure a DPAL loan after satisfaction of all requirements for funding:
• Program Affidavit, executed by Borrower, acknowledging that they have read these guidelines and program restrictions.
• Deed of Trust, executed at the close of the escrow by Borrower for the benefit of the City to secure the Promissory Note. The Deed of Trust is subordinate to the first mortgage deed of trust, and in the second lien position unless otherwise approved by the City.
• Promissory Note, executed at the close of the escrow by Borrower for the benefit of the City and secured by the Deed of Trust. The Note provides for the greater of a share of appreciation or simple interest, and is due and payable, in full, according to the loan terms.
SECTION 4.9 Payoff Requests
If a Borrower would like to repay their DPAL Loan before it is due, they must submit a written request for payoff. In addition, if selling their home, Borrowers must submit a ratified Purchase Agreement (if applicable), and/or a fair market appraisal report obtained at their own cost. The amount due and owing will be the principal plus the greater of accrued interest or share of appreciation, plus the loan payoff fee. The share of Program Guidelines 4.24.26 23
appreciation will be determined by a Purchase Agreement and/or a fair market appraisal report, dated within ninety (90) days of submitting the payoff request. Share of appreciation on BMR units will be calculated based on the change in the affordable price, which will generally be less than the appreciation on comparable market rate units.
SECTION 4.10 Loan Default
It is important that Borrowers understand the program rules and procedures fully. Any violation of the program rules and restrictions may result in the City declaring the Borrower to be in default of the loan and may lead to the immediate repayment of the DPAL loan and/or other enforcement actions. Borrowers are encouraged to contact the City as soon as possible if they are at risk of a loan default or a foreclosure, or if HOA payments/special assessments become unaffordable.
The following are the most common causes for the City to declare the DPAL loan in default. The list is not exhaustive, and Borrowers shall review the Deed of Trust to confirm the Events of Default.
• Failure to occupy the home as your principal place of residency. • Failure to comply with the Annual Owner Occupancy Monitoring. • Non-payment of HOA fees or property taxes.
• Renting or sub-letting of the property, without the City’s prior consent. • Loans, liens, or lines of credit taken out against the property, without the City’s prior consent.
• Default in the payment or performance of any obligation secured by a lien, mortgage or deed of trust which is superior to the DPAL loan. • Sale, Transfer or Conveyance of the property, without the City’s prior consent.
SECTION 5. MORTGAGE LOAN RESTRICTIONS
This Section describes the requirements for Mortgage Loans.
SECTION 5.1 First Mortgage Loan
The First Mortgage Loan must be no more than a 30-year, fully amortizing fixed-rate mortgage. It may not have negative amortization, principal increases, balloon payments, or deferred interest payments. The City reserves the right to identify additionally prohibited loan programs and/or characteristics.
SECTION 5.2 Adjustable-Rate Mortgage Restriction
The senior mortgage may not be an adjustable-rate mortgage.
Program Guidelines 4.24.26 24
SECTION 5.3 Maximum Total Loan to Value Ratio
A Borrower of a senior loan may borrow up to 100% of the property’s Combined Loan to Value (CLTV). The first mortgage must be for at least 50% of the purchase price.
However, the first mortgage may be less than 50% of the purchase price if the total of the first mortgage plus additional subordinate financing approved by the City is at least 50% of the purchase price.
SECTION 5.4 Third-Party Credits and Contributions
Credits and contributions from a third party, such as the seller, the real estate agent or broker, or the Lender, are allowed for non-recurring loan closing costs. All credits must be used in escrow; no more than $250 cash may be paid to Borrower at close of escrow. Any excess cash must first be applied towards the reduction of the DPAL loan amount.
SECTION 6. REFINANCE/OTHER LIENS POLICY
This Section covers refinancing First Mortgage Loans and other loans the Borrower may take out against the property. This section also describes the City’s approach to approving the short sale of a loan.
SECTION 6.1 Refinancing First Mortgage Loan
Borrowers must obtain the City’s written approval to refinance their First Mortgage Loan.
Refinancing the First Mortgage Loan will not require repayment of the DPAL loan if the new first mortgage is for an amount equal to, or less than, the original first mortgage and the city’s lien position is to be maintained. All other requirements for senior financing under Section 5 apply to the new first mortgage. The same individuals that were named as Borrowers on the DPAL Loan must also be named as Borrowers on any refinanced First Mortgage Loan, unless the City has approved the addition of a Borrower by marriage or domestic partnership or the removal of a Borrower by death, divorce or dissolution of domestic partnership or similar change to the household configuration in writing. Failure to obtain city written approval to refinance a first mortgage is in violation of the program restrictions and will require the DPAL loan to be immediately due and payable.
SECTION 6.2 Other Loans/Liens Post Escrow
Borrowers must obtain the City’s written approval for the addition of any loan/lien on the property regardless of the lien position post close of escrow. At all times the City’s lien Program Guidelines 4.24.26 25
position must be maintained and will only be subordinated in accordance with the City’s subordination policy. Failure to obtain city approval is in violation of the program restrictions and will require the DPAL loan to be immediately due and payable.
SECTION 6.3 Request City Authorization
When requesting approval to refinance or to obtain an additional loan or lien on the property, Borrower must:
• Be in compliance with Owner Occupancy Monitoring and DPAL Program guidelines; • Pay an administrative fee posted on the City’s website; • Submit all the required documents on the refinance checklist; • Satisfy any other requirements outlined in Section 5 of the Program Guidelines.
SECTION 6.4 Subordination of DPAL Loan
While the City has the ability to require repayment of the City’s loan upon refinancing the primary loan, as established in the program’s promissory note and deed of trust, the City may agree to subordinate to a new first mortgage, under the conditions stated above, in order to help Borrowers stabilize or reduce their housing costs.
SECTION 7. GENERAL REQUIREMENTS
This Section describes the general requirements of the DPAL Program.
SECTION 7.1 Title Insurance Policy
The outstanding principal balance of the down payment assistance loan must be covered by a separate ALTA Lender’s Policy of Title Insurance naming the City of Newark c/o Community Development Department, as follows:
City of Newark, its Successors and/or Assigns
c/o Community Development Department
Attn: Community Development Director
37101 Newark Blvd
Newark, CA 94560
SECTION 7.2 Non-Discrimination
All Applicant eligibility requirements contained in these guidelines must be applied without regard to the race, creed, color, gender, religion, or national origin of the Borrower.
Program Guidelines 4.24.26 26
Information received by the City is only for purposes of verifying the Applicant’s eligibility for a DPAL loan.
SECTION 7.3 Maintenance
Borrower will maintain the property in compliance with all applicable laws, ordinances, and regulations and in a good and clean condition. The Borrower will not destroy, damage, or impair the property, allow the property to deteriorate, or commit waste on the property.
SECTION 7.4 Hazard or Property Insurance
The property must be covered by a property insurance policy for a minimum of its replacement value. The City must be named as an additional insured or loss payee on the insurance policy. For Condominiums or attached Townhouses, if HOA master policies do not cover replacement of the interior of the property, the Borrower must obtain and maintain separate HO-6 condominium or other homeowner insurance policy that lists the City as an additional insured or loss payee for the life of the loan. The loss payee clause must read as follows:
City of Newark, its Successors and/or Assigns
c/o Community Development Department
Attn: Community Development Director
37101 Newark Blvd
Newark, CA 94560
SECTION 7.5 No Renting
The Borrower is prohibited from renting or sub-leasing any part of the property without prior written approval from the City at their sole discretion. No part of the property can be rented or sub-leased as a short-term rental or listed on short-term rental or vacation rental sites at any time.
Program Guidelines 4.24.26 27
Appendix 1: Household Income and Assets
This appendix provides a detailed description of the types of Household income included in consideration of Applicant eligibility for the DPAL Program.
A. Income Inclusions
The following sources of income are included in the income calculation.
Wages, Salaries, Tips: The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, fringe benefits, tips, and bonuses. Includes compensation for services rendered, such as freelance, online businesses, side businesses, consulting, and self-employment.
Business Income: The net income from the operation of a business or profession.
Expenditures for business expansion or amortization of capital indebtedness shall not be used as deductions in determining net income. An allowance for depreciation of Assets used in a business or profession may be deducted, based on straight-line depreciation, as provided in Internal Revenue Service regulations. Any withdrawal of cash or Assets from the operation of a business or profession will be included in income, except to the extent the withdrawal is reimbursement of cash or Assets invested in the operation by the family.
Interest and Dividends: Interest, dividends, and other net income of any kind.
Expenditures for amortization of capital indebtedness may not be used as deductions in determining net income. An allowance for depreciation is permitted only as authorized in Business Income (above).
Retirement and Insurance Income: The full amount of periodic amounts received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including a lump-sum amount or prospective monthly amounts for the delayed start of a periodic amount.
Social Security Income (SSI) and Supplemental SSI: Deferred periodic amounts from Social Security and SSI benefits that are received in a lump sum amount or in prospective monthly amounts.
Unemployment and Disability Payments: Payments in lieu of earnings, such as unemployment and disability compensation, workers’ compensation, and severance pay (except as provided in Inheritance and Insurance Income under Income Exclusions).
Welfare Assistance Payments: Welfare assistance payments made under the Temporary Assistance for Neey Families (TANF) program are included in annual income except any amount designated for shelter or utilities.
Armed Forces Pay: All regular pay, special pay, and allowances of a member of the Program Guidelines 4.24.26 28
Armed Forces (except as provided in Armed Forces Hostile Fire under Income Exclusions).
Adoption Assistance, Child Support, and Alimony Payments. All forms of adoption assistance, child support, and alimony payments.
Cash income: From all bank accounts held in whole or part from each member of the Household over 18 years old.
Periodic Payments: Periodic payments made on your behalf by others including but not limited to, rent and living expenses such as retirement and insurance income including Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and a lump-sum amount or prospective monthly amount for the delayed start of a periodic payment, alimony and child support payments, or regular contributions or gifts received from organizations or from persons not residing in the dwelling. See Income Exclusions for exceptions to these cases.
Certain Assets: Certain Assets will be included in the income calculation and are specified in this Appendix, below.
Income from Rental Property: If an Applicant meets the First Time Homebuyer definition and owns rental property that has not been their Primary Residence for the three year period preceding their DPAL application, the annual rental income received will count towards their Household Income.
B. Income Exclusions
The following sources of income will not be included in the income calculation.
Income of Children: Income from employment of children (including foster children) under the age of 18 years and full-time students living elsewhere at the time of application.
Foster Care Payments: Payments received for the care of foster children or foster adults (usually persons with disabilities, unrelated to the tenant, who are unable to live alone).
One-Time Inheritance and Insurance Income: One-time additions to Household Assets, such as inheritances, insurance payments (including payments under health and accident insurance and workers’ compensation), capital gains, and settlement for personal or property losses (except as provided in Unemployment and Disability in Income Inclusions).
Medical Expense Reimbursements: Amounts received by the Household that are specifically for, or in reimbursement of, the cost of medical expenses for any Household member.
Student Loans: The full amount of student financial aid, including grants, scholarships, educational entitlements, work study programs, or financial aid packages.
Program Guidelines 4.24.26 29
Armed Forces Hostile Fire Pay: The special pay to a Household member serving in the Armed Forces who is exposed to hostile fire.
Home Care Assistance: Amounts paid by a state agency to a Household with a member who has a developmental disability and is living at home to offset the cost of services and equipment needed to keep this developmentally disabled Household member at home.
This exclusion does not apply to a Household member that earns income providing home care assistance outside of their Household.
Certain Assets: Certain Assets will be excluded in the income calculation and are specified in this Appendix, below.
C. Asset Calculations
At the time of application and prior to purchase, Applicant can have up to $225,000 in Assets listed under Asset Inclusions. If an Applicant’s assets exceed $225,000 at the time Household Income is determined, Applicant will not qualify for a DPAL loan. If Applicant’s assets are less than or equal to $225,000 at the time the property is purchased, Applicant may retain a maximum of $60,000 total in assets and must apply any assets in excess of $60,000 toward the purchase of the property.
Evidence that assets have been transferred to another individual or into an unavailable asset account, or have been spent (except on unexpected emergencies, such as funeral expenses, travel costs related to illness, repair of a vehicle, medical needs and housing needs) to avoid use in the purchase will result in disqualification of the Applicant’s application.
In determining whether a Household’s Assets are within the Asset limits, the most recent three months of account statements for each monetary Asset (bank, credit union, nonretirement investment account statements) will be reviewed and the current balance of each account will be included in the calculation of total Assets. Non-monetary Assets, such as stock options, mobile homes, commercial real estate, etc., will be valued based on a current valuation (not less than 90 days old) to be provided by a qualified third-party appraiser or estimator, which must be included in the Applicant’s Full Application. The Household’s current total combined Household Assets on the application date (most recent monthly statements/valuations in application) must be within these Asset limits.
The City or their designee reserves the right to request additional documentation, if needed, to accurately assess the value of Assets.
D. Asset Inclusions
The following types of assets are included in the asset calculation.
1. Cash held by a member of the Household in savings accounts, checking accounts, Program Guidelines 4.24.26 30
safe deposit boxes, etc. Includes all custodial accounts held for minors.
2. Cash value of revocable trusts available to a member of the Household.
3. Cash value of stocks, bonds, Treasury bills, certificates of deposit, and money market accounts.
4. Cash value of life insurance policies available to the individual before death (e.g., the surrender value of a whole life or universal life policy).
5. Lump sum or one-time receipts, such as inheritances, capital gains, lottery winnings, victim’s restitution, insurance settlements, gifts, and other amounts not intended as periodic payments.
6. Equity in cooperatives.
7. Assets in IRS-recognized retirement accounts (IRAs, 401(k)s, 403(b)s, etc.), that the Applicant can access prior to terminating employment or retiring, regardless of penalty (while Applicant is employed). If Applicant is retired, any amount they elect to receive as a lump sum will be counted as an Asset.
E. Asset Exclusions
The following types of assets are excluded from the asset calculation.
1. Necessary personal property, such as clothing, furniture, cars, and vehicles specially equipped for persons with disabilities.
2. Interest in Indian trust lands.
3. Assets not effectively owned by a member of the Household; that is, when Assets are held in an individual's name, but the Assets and any Income they earn accrue to the benefit of someone else who is not a member of the Household and that other person is responsible for income taxes incurred on Income generated by the Asset.
4. Assets not accessible to and that provide no Income for the Household, e.g., a battered spouse who owns a house with her husband but, because of the domestic situation, receives no income from the Asset and cannot convert the Asset to cash.
5. Term life insurance policies (i.e., where there is no cash value).
6. Assets that are part of an active business including business equipment and vehicles.
7. Future/potential pension benefits or insurance proceeds held in accounts not currently owned and controlled by the Applicant or co-Applicant(s). (However, amounts must be listed on the application, and documentation provided, as described on the application.) IRA, Keogh, and similar retirement savings accounts where benefits are being received through periodic payments will also be excluded from the calculation of Assets.
8. 529 college savings accounts.
Program Guidelines 4.24.26 31
Appendix 2: Loan Repayment Calculation
The DPAL Program offers a 30-year loan with a fixed 3% interest rate. The loan is deferred with no monthly payments due during the loan term. At the end of the 30 years, or if the loan is paid off early, due to a sale, transfer, or a refinance prior to the 30-year loan term, the principal and the greater of accrued interest or share of the property’s increased value is due.
The following is an example of the loan repayment calculation based on the greater of accrued interest or share of the property’s increased value. Below are two charts. Chart #1 is an example of the calculation for determining the share of the property’s increase in value as a repayment method. Chart #2 is an example of the calculation for determining the accrued interest only.
These are examples only for the purpose of sharing the calculation assumptions.
Chart #1 – Example Assumptions Share of
Appreciation
Original Purchase Price $500,000
DPAL Loan Amount $100,000
Fair Market Value Resale Price (after 5 years) $635,000 Total Appreciation
Fair Market Value – Original Purchase Price $135,000
City’s Proportional Share of the DPAL Loan
DPA Loan ÷ Original Purchase Price 20%
Share of Appreciation
% of City’s Proportional Share x Appreciation amount
$27,000
Total Amount Due
Original loan + Share of Appreciation
$127,000
Chart #2 – Example Assumptions Accrued
Interest
Original Purchase Price $500,000
DPAL Loan Amount $100,000
Interest Rate 3%
Fair Market Value Resale Price (after 5 years) $635,000 Total Interest Owed
(Loan amount x Interest rate) x 5 years of ownership $15,000 Total Amount Due
Original loan + accrued interest
$115,000
Program Guidelines 4.24.26 32
Based on the example calculations above, the Borrower’s DPAL loan repayment amount would be $127,000, since the Share of Appreciation calculation is greater than the Accrued Interest calculation.
City of Newark DPAL Implementation Manual 1
Draft
City of Newark
Down Payment Assistance Loan
Program Implementation Manual
April 20, 2026
City of Newark DPAL Implementation Manual 2
City of Newark Down
Payment Assistance Loan
Program Implementation
Manual
Section 1 – Introduction
1.1 Definitions
1.2 Overview of the Down Payment Assistance Loan Program
1.3 Interest Rate
1.4 Share of Appreciation
1.5 Down Payment Assistance Loan Amount
Section 2 – The Application Process
2.1 The Pre-Application
2.2 The Application Lottery
2.3 The Program Application
2.4 Program Application and Submittal Timelines
2.5 The Down Payment Assistance Loan Program Reservation Process A. Reservation Period
Section 3 – The City of Newark Preference Criteria
Section 4 – The Down Payment Assistance Loan Program Final Approval and Closing Process
3.1 First Loan Package
A. First Loan Submittal Package (Part 1)
B. First Loan Submittal Package (Part 2)
3.2 Borrower Closing Package
3.3. Final Approval of the Down Payment Assistance Loan
3.4. Loan Funding Package
Section 5 – Loan Repayment Calculation Examples
Appendix A – Down Payment Assistance Loan Processing Summary City of Newark DPAL Implementation Manual 3
SECTION 1 - INTRODUCTION
The City of Newark’s Down Payment Assistance Loan (DPAL) Program for First-Time Homebuyers (the “DPAL Program”) provides down payment assistance to eligible First-Time Homebuyers in purchasing a home within the city limits of Newark. This Implementation Manual is intended to provide general information about the DPAL Program as well as information about the application and review process. For a more detailed description of the DPAL Program and the eligibility requirements, please refer to the City’s DPAL Program Guidelines.
Down payment assistance plays a crucial role in helping First-Time Homebuyers overcome one of the biggest barriers to homeownership—saving for the initial down payment. Many aspiring homeowners, especially those from low- and moderate-income backgrounds, find it challenging to amass the substantial funds required for a down payment, which can significantly delay or even derail their plans to own a home. By investing in a down payment assistance program, the City of Newark aims to bridge this gap, promoting greater homeownership and housing stability within the community. This initiative not only helps individuals achieve their dream of homeownership but also contributes to a stronger, more vibrant city by fostering stable neighborhoods and supporting local economic growth.
1.1 Definitions
Area Median Income (AMI): The midpoint in the income distribution within a specific geographic area. The area median income adjusted for Household Size is published annually by the California Department of Housing and Community Development.
Applicant: A Household that has submitted an application for the City of Newark’s Down Payment Assistance Loan Program.
Appreciation: The increased value of a Residential Unit determined by subtracting the Purchase Price from the sales price at the time of resale or the Fair Market Value upon other events triggering repayment.
Assets: Items of ownership which can be converted into cash; total resources of a person or business, such as cash, notes and accounts receivable, securities, inventories, goodwill, fixtures, machinery, or real estate. (See City’s DPAL Program Guidelines – Appendix 1 for details) Back-end ratio: Ratio of the amount of monthly income that will go toward paying Housing Expenses plus all monthly debts, post-purchase, for a DPAL Program Applicant, at the time their application is submitted.
Below Market Rate (BMR) Homes: A BMR home is priced to be affordable to a Household that is at or below certain designated Income Levels. BMR homes have restrictions recorded against them to ensure they remain affordable for a set period. If they are resold before that time expires, they are sold for a BMR Affordable Sales Price and the time limit is reset for the new owner.
BMR Affordable Sales Price: The City and developer will enter into an agreement and establish a Low to Moderate Income limit and the Maximum Sale Price for the BMR Unit(s).
City of Newark DPAL Implementation Manual 4
The price shall be a purchase price which is affordable to a Low to Moderate Income Household, as adjusted by the assumed household size which is determined based on the number of bedrooms in the BMR Unit. For each BMR unit in a project, the City establishes an Affordable Sales Price for which the BMR unit will be sold. The Affordable Sale Price is known as the BMR Purchase Price.
Borrower: Refers to an Applicant for the Program that has been approved for a loan or has obtained a loan from the Program.
Borrower Closing Package: Documents submitted to Program Administrator by Borrower as set forth in Section 3.2
City Loan Documents: City Loan Documents include a Promissory Note, a Deed of Trust and an Occupancy, Shared Appreciation, and Refinancing Restriction Agreement.
Closing Disclosure: A form, provided by the First Lender, that describes, in detail, the critical aspects of a potential borrower’s mortgage loan, including purchase price, loan fees, interest rate, estimated real estate taxes and insurance, closing costs and other expenses.
Conditional Approval and Reservation of Funds: An evaluation of an Applicant by the DPAL Program Administrator and the City that determines whether the Applicant qualifies for the loan based on his/her/their income, and other eligibility criteria set forth in Section 2.4. If an Applicant is conditionally approved, the City will issue a conditional approval letter to the Applicant and reserve DPAL Loan funds for a period of 120-days.
Community Development Department: A department within the City of Newark responsible for overseeing the DPAL Loan Program.
Deed of Trust: A document used to establish the security for a loan, including for mortgage loans. Typically uses the property to secure repayment of a loan or other obligation. Once fully executed, notarized, and properly recorded, the Deed of Trust becomes a Lien against the property.
Displacement by a Proposed Residential Project: Having moved out of a rental property located in the City of Newark due to a new residential project being proposed at the rental property site. For displacement-based priority/preference, the Applicant must currently meet the criteria at the time of submitting a Pre-Application. Evidence of displacement from a rental property in the City of Newark due to a proposed residential project will be required.
Down Payment: A down payment is a sum a buyer pays upfront when purchasing a larger expense such as a home or car.
Event of Default: An event of default is a predefined circumstance that allows a lender to demand full repayment of an outstanding balance before it is due. (See City’s DPAL Program Guidelines – Section 4.10 Loan Default for details)
DPAL: City of Newark’s Downpayment Assistance Loan Program DPAL Program Administrator: The city-designated third-party administrator of the DPAL Program.
City of Newark DPAL Implementation Manual 5
Fair Market Value (FMV): The value of a property based upon the determination of an appraisal created by a qualified appraiser holding a California Certified Appraisal License (issued by the Office of Real Estate Appraisers), preferably with a Member of the Appraisal Institute member designation (issued by the Appraisal Institute), and with experience valuing similar properties in the Bay Area pursuant to Uniform Standards of Professional Appraisal Practice the cost of which shall be borne by the Applicant. After reviewing such appraisal, the City shall have the option, at its sole expense, to select an appraiser to conduct an additional appraisal of the Residential Unit.
If the two appraisals are not in agreement as to the value of the Residential Unit, the amounts determined by the appraisals will be averaged to determine the Fair Market Value.
Final Approval: A written approval from the City to the Applicant and First Lender signifying that the First Loan Package and Borrower Closing Package have been approved and the Applicant meets the eligibility criteria of the DPAL Program as set forth in Section 3.3..
First Loan Package: Documents submitted to the DPAL Program Administrator by First Lender as set forth in Section 3.1.
First-Time Homebuyer: Individuals that have not owned a Primary Residence in any state or country during the three-year period before applying for the DPAL Program.
Exceptions to this definition include:
a) An individual who previously owned a home with a former spouse or registered domestic partner during their marriage or domestic partnership. The Applicant must submit a recorded divorce decree or Notice of Termination of Domestic Partnership.
b) An individual who has owned a principal residence that was not permanently affixed to a permanent foundation, according to applicable regulations; c) An individual who has owned timeshares;
d) An individual who was a loan cosigner from a previous real estate transaction; e) An individual who has appeared on title for property solely in the capacity as a trustee for a trust, where the trustor is living at the time and in the residence; f) An individual named as a beneficiary of a trust that includes a housing unit amongst the trust assets, but only if the trustor is living at the time and occupying the residence.
First Mortgage: The primary lien securing the First Loan on the Residential Unit which has priority over all other liens or claims on the Residential Unit in the event of default.
First Mortgage Lender: The private lender providing a First Mortgage Loan to the Applicant to finance the purchase of the Residential Unit.
Program Application: DPAL Program application with required supporting documents submitted by Applicants to the DPAL Program Administrator.
Front-end Ratio: An individual's monthly Housing Expenses divided by their monthly gross income, at the time their application for the DPAL Program is submitted. It is evaluated in conjunction with the back-end ratio.
City of Newark DPAL Implementation Manual 6
Gross Household Income: All income, before any deductions are taken from whatever source derived, of all adult Household members (18 years of age and older), whether such income is exempt from federal income tax. (See City’s DPAL Guidelines, Appendix 1 for details) Living in the City of Newark: Occupying and renting, at the time of application and for at least a full six months (180 days) prior to the application date, a bona fide rental dwelling within the Newark city limits, as evidenced by valid third-party documentation (a lease, a California driver’s license or identification card showing street address (not a post office box) of such residence, current California vehicle registration card, or gas/electric/water bills). For residencybased priority/preference, the Applicant must currently meet the criteria and have met the criteria for at least the past 6 months at the time of submitting a Pre-Application. Evidence of payment of a lease and rental contract for the 6-month period will be required.
Loan Funding Package: Final verification by the DPAL Program Administrator and the City that the DPAL Program’s escrow instructions have been followed and all financing, household, and property details remain unchanged since Final Approval, as set forth in Section 3.4.
Occupancy, Shared Appreciation, and Refinancing Restriction Agreement: A document used to establish the terms of down payment assistance programs which require owneroccupancy, repayment of the down payment assistance loan plus a portion of the home’s appreciation in value, and limitations on refinancing. Once fully executed, notarized, and properly recorded, the Occupancy, Shared Appreciation, and Refinancing Restriction Agreement becomes a Lien against the property.
Pre-Application: Initial household eligibility based on stated information provided by Applicant, to determine eligibility of household to move forward in the application process. Upon request, Applicants who prefer to submit a paper copy of the Pre-Application will be provided with instructions to submit a Pre-Application by mail.
Primary Residence: Program participants must occupy their home as their primary residence, defined as living in the home a minimum of ten months out of the year.
Program: City of Newark’s Down Payment Assistance Loan Program, otherwise known as DPAL Program, (the “DPAL Program”).
Promissory Note: A written promise to pay a specified sum of money to a designated person or to his or her order, or to the bearer of the note, at a fixed time or on demand. The document executed by loan recipients and dated concurrently with the Deed of Trust securing the Promissory Note. The Promissory Note establishes the principal loan balance and indebtedness.
Purchase Price: Borrower’s cost of purchasing the Residential Unit excluding usual and reasonable settlement or financing costs.
Reservation of Funds: See “Conditional Approval.”
Residential Unit: Single-family homes, townhomes, condominiums, Accessory Dwelling Units, BMR units located within the city limits of Newark and live/work units located in the city limits of Newark.
Sales Contract (Purchase Agreement): A contract for the purchase and sale of the Residential City of Newark DPAL Implementation Manual 7
Unit.
Sale or Transfer: Any voluntary or involuntary sale, conveyance, assignment, or Transfer of ownership of or any interest in the property, including a fee simple interest, Tenancy in Common, Joint Tenancy, community property, tenancy by the entireties, life estate, or other limited estate, leasehold interest or any rental of the residence, or any interest evidenced by a land contract.
Shared Appreciation: Often First-Time Homebuyer loan agreements include a shared appreciation component. In such a loan, when the Borrower pays back the loan, they also pay a certain percentage of the increase in value (the appreciation) of the property, between the date of purchase and the date of the loan payoff.
Working in the City of Newark: Earning one’s primary source of annual income (salary, wages, commissions) through employment by a Newark employer licensed and permitted by the City, at a primary worksite in the City of Newark; or through operation of a Newark-based business that is licensed and permitted by the City of Newark. Working in the City of Newark does NOT include volunteer or unpaid work, or self-employment consisting solely of operating a business entity established solely for the purposes of investment in a rental property. Income earned in the City of Newark must be verified by your paycheck stubs, tax returns, and/or other documentation described in the application forms. The Applicant’s qualifying household member must be a person whose name will appear on title for the home purchased with DPAL funds and who will use the unit as their primary residence. For employment-based priority/preference, the Applicant must currently meet the criteria and have met the criteria for at least the past 6 months at the time of submitting a Pre-Application. If an applicant works from home either part-time or full-time, employment must be with an employer licensed and permitted by the City at a place of business located within the City limits and verified by the employer.
1.2 Overview of the Down Payment Assistance Loan Program The DPAL Loan will be offered as a deferred payment loan. Repayment is required upon the Sale or Transfer of the property, and it will be recorded as a second deed of trust to the First Mortgage Loan. However, per the city’s discretion, it may further subordinate to another Down Payment Assistance Loan, should this loan exceed the DPAL loan amount. The loan shall be due in full at the end of the 30-year term, or upon Sale, Transfer of the property, an unapproved refinance of the first mortgage, or any Event of Default under the City DPAL loan documents.
There shall be no payments due on principal or interest owed during the term of the loan if the Borrower continues to owner-occupy the home and an Event of Default has not occurred. Once the loan is due, the Borrower will be required to pay back the loan principal and the greater of accrued interest or share of appreciation.
If the property has appreciated from the date of purchase to the date of repayment, the City will evaluate whether the principal along with accrued interest will be due or whether the principal plus a share of appreciation in direct proportion of the dollars loaned at the time of purchase will be due.
DPAL loan funds may be used for a purchase of BMR units within the city limits of Newark priced for buyers at or below 80% of AMI. In the case of newly constructed BMR units, the BMR City of Newark DPAL Implementation Manual 8
Affordable Sales Price must meet the City’s standards for affordability without relying on the DPAL loan. The DPAL loan funds can only be utilized if it’s necessary for the buyer to afford the unit. This ensures that developers cannot adjust pricing to capitalize on the availability of a DPAL loan. No more than 10% of the DPAL loan funds will be invested in BMR properties.
1.3 Interest Rate
The interest rate for a loan from the DPAL Program will be fixed at 3%.
1.4 Share of Appreciation
If the property has appreciated in value from the date of purchase to the date of repayment, the Promissory Note and Deed of Trust include Shared Appreciation provisions so that the City recoups a percentage of the profit made from selling the home in direct proportion to the dollars loaned at the time of purchase. The share of appreciation shall be based on the ratio of the original DPAL loan amount to the original purchase price of the property. At the time that the property is sold or the loan is repaid, the City will determine the Fair Market Value of the property (hereafter the “Resale Price”). The Fair Market Value shall be the greater of the actual Resale Price or the Appraised Value at the time of repayment. However, once the loan is due, the Borrower will be required to pay back the loan principal and the greater of accrued interest or share of appreciation.
The share of appreciation on BMR units will be calculated based on the change in the BMR Affordable Sales Price, which will generally be less than the appreciation on comparable market rate units.
If the property has not increased in Fair Market Value from the date of purchase to the date of repayment, the Borrower shall be obligated to repay the principal amount of the loan along with the simple interest calculation as noted in the Promissory Note.
1.5 Down Payment Assistance Loan Amount
The DPAL Program includes a tiered assistance system based on Area Median Income (AMI) levels to determine the maximum loan amount. The amount the Applicant may receive will vary depending on each Applicant’s individual circumstances, however the maximum DPAL loan an Applicant can receive is based on the following:
• The loan amount for households at or below 120% AMI is capped at $150,000. • The loan amount for households at or below 100% AMI is capped at $200,000. • The loan amount cannot be greater than the First Mortgage regardless of the tiered assistance noted above.
SECTION 2. The Application Process
In order to be considered for a Reservation of Funds, Applicants must participate in a 2-step application process. The first step is to submit a Pre-Application, which requests basic household information.
Pre-Applications determine an Applicant’s basic eligibility to move forward in the process. The City of Newark DPAL Implementation Manual 9
Program Application requires more detailed household information and complete supporting documentation for each household member. The purpose of this 2-step process is to respect Applicants’ and Program Administrator’s time by establishing initial eligibility based on stated household information before requiring a Program Application, which will reduce the time burden to potential program Applicants who are found to be ineligible at the Pre-Application stage.
2.1 The Pre-Application
Interested Applicants shall complete a Pre-Application through an online platform that can be found at https://www.housing.newarkca.gov/resources#homebuyerassistance upon the opening of a pre-application process. Potential applicants can also request a paper version of the PreApplication and mail the Pre-Application to the DPAL Program Administrator at the address contained in the Pre-Application. The DPAL Program Administrator shall review the PreApplication information submitted to determine basic eligibility to move forward in the application process. Pre-Application materials and information collected include the following:
• Completed and signed Pre-Application
• Current residence information
• Verification of First-Time Homebuyer Status
• Stated combined annual Gross Household Income for all adults • Total household Assets
• Name and relationship to the primary applicant of all household members • Household demographic information
• Stated eligibility for the City of Newark Preference Criteria Applicants will not be required to submit supporting documentation to verify the information indicated at the Pre-Application stage.
The DPAL Program Administrator shall review the Pre-Application information submitted to determine basic eligibility to proceed to the next steps of the application process. If the Applicant is considered eligible to proceed, they shall receive an email confirmation containing a unique identification number.
Confirmation of eligibility to proceed following the submittal of the Pre-Application does not mean approval of a funding reservation by the City. Qualification for the DPAL Program will be evaluated at the time an Applicant submits a complete Program Application.
If an Applicant is considered ineligible, the Applicant may request reconsideration of the ineligibility finding by submitting new information or documentation contesting the ineligibility finding to the DPAL Program Administer. Applicants who have included an email address in their application will be notified of their ineligibility status by email and must submit a request for reconsideration within two (2) business days after the pre-application closes. Applicants who do not include an email address in their application will be notified through the US Postal Service and must submit a request for reconsideration within five (5) business days from the date of the ineligibility notification. If the Applicant is not able to submit information within the stated timeframe, or the information that is submitted at the time is not sufficient to determine eligibility, the Applicant may reapply for the program.
Following the closing of the Pre-Application period, all Applicants that submitted an eligible Pre- City of Newark DPAL Implementation Manual 10
Application will be invited to attend a mandatory application workshop. After the workshop, all Applicants that attended will have their unique identification number entered into a lottery and assigned a lottery position. Priority will be given to eligible Applicants based on the priority categories defined in the City of Newark Preference Criteria. (Refer to Section 3 – The City of Newark Preference Criteria)
2.2 The Application Lottery
The DPAL Program Administrator will conduct a lottery to assign ranking positions for all Preference/Priority categories. In lottery ranking order, Applicants will be invited to submit a Program Application for an opportunity to receive a Conditional Approval and Reservation of Funds. The following guidelines will be applicable to the lottery process:
• At least thirty (30) calendar days prior to a lottery, the DPAL Program Administrator will start to accept complete Pre-Applications.
• All households that submit an eligible Pre-Application will receive a unique identifying number (Unique ID) and following attendance at a mandatory workshop, shall be included in the lottery that fits their Preference/Priority category. • At the lottery, the DPAL Program Administrator will use an electronic system to randomly rank the Unique ID within each Preference/Priority category. Each Applicant will subsequently be notified of their ranking position (“lottery position”). • The lottery for the DPAL Program will be held in the presence of City staff. • Lottery results will be emailed to all eligible Applicants and posted on the program website. The list will not include the names of Applicants but will include the lottery numbers and corresponding lottery positions.
• The top-ranked lottery positions will be invited to move forward in the application process and given the opportunity to submit a Program Application for review. • The DPAL Program Administrator reserves the right to move to a First-Complete FirstServed process if a sufficient number of applications are not received during the PreApplication process.
The City has established a priority system for allocating the limited amount of DPAL funds to eligible households. Priority will be given to income-eligible Applicants based on the priority categories defined in the City of Newark Preference Criteria. (Refer to Section 3 – The City of Newark Preference Criteria)
2.3 The Program Application
Upon completion of the lottery, Applicants will be invited to submit a Program Application in lottery ranking order. Applicants will be provided a link to complete an online application and also have the option to submit a paper application via mail.
The DPAL Program Administrator will underwrite Applicants in lottery ranking order to determine eligibility and their maximum loan amount. An Applicant’s Program Application and supporting documents packet must include all of the following:
• Program Application
• First Mortgage Loan pre-approval letter
• Applicant(s) two months’ most current and consecutive paystubs • Award letter or two months’ documentation for all other income sources including child support, social security, pension and disability income City of Newark DPAL Implementation Manual 11
• Applicant(s) Driver License or State Issued Identification Card • Applicant(s) signed & dated federal tax returns for the past 3 years with all schedules & W-2s OR IRS Verification(s) of Non-Filing
• Applicant(s) three most current and consecutive months of financial account statements for all accounts
• Gift letter and evidence of donor availability of funds (if applicable) • For self-employed Applicant: a) copies of Applicant’s Federal Income Tax Returns (both individual return and business returns) that were filed with the IRS for the past three years with all schedules; b) YTD profit & loss statement • Supporting documentation for 1st Priority or 2nd Priority in City of Newark Preference Criteria (if applicable)
• Additional documents as requested by Program Administrator in order to verify program eligibility
The DPAL Program Administrator shall review Program Applications and notify the Applicant of any and all missing and/or additional required application documents.
Failure by the Applicant to submit a complete Program Application within the application submittal period will result in a disqualification for the DPAL Program.
2.4 Program Application Submittal Timelines
Once invited to submit a Program Application, Applicant will be provided thirty (30) calendar days to complete the Program Application and submit all required supporting documents. Upon Program Administrator review, any and all missing and additional documents required will be requested of Applicant, who will then have five (5) business days to submit the requested documents. If Applicant responds with the requested missing documents submitted and further clarifications or documents are still required that were previously requested, Applicant will be provided an additional two (2) business days to provide the outstanding documentation. Failure by the Applicant household to submit a complete Program Application with all required supporting documents within the application submittal period or failure to meet the subsequent document submission deadlines will result in program disqualification. Should Applicant desire to contest his/her/their disqualification, he/she/they must follow the steps listed in Section 2.1.
2.5. DPAL Conditional Approval and Loan Reservation Process Upon the DPAL Program Administrator’s review of a complete Program Application, the Administrator shall transmit to the City a recommendation for a Conditional Approval and Reservation of Funds or a DPAL Program disqualification, accompanied by the completed Program Application and a summary of ineligibility findings.
A Conditional Approval and Reservation of Funds does not constitute Final Loan Approval nor guarantee that the Applicant will receive a DPAL. Conditional Approvals are always subject to the availability of DPAL Program funds and are conditioned upon meeting the criteria for Final Loan Approval through the submission of the First Loan Package and Borrower Closing Package as noted below in Section 3.
City of Newark DPAL Implementation Manual 12
Final Approval criteria include, but are not limited to the following:
• Applicant Front-End Ratio meets the minimum requirement of 28% (Applicants receiving a Section 8 homeownership voucher are exempt from this requirement) • Applicant Back-End Ratio does not exceed 45%
• Property meets Property Eligibility Requirements
• Household Income remains within maximum income limits for the loan size • DPAL amount is not greater than the First Mortgage.
A. Reservation Period
I. A DPAL will be reserved and available for a 120-day reservation period to support Applicants shopping for a Residential Unit.
II. Applicants will have the option to request that the City extend the reservation period for an additional 60 days by submitting evidence that they have been actively searching for a Residential Unit but have been unsuccessful in the 120-day period. Evidence may include, but is not limited to, submitted, but unaccepted offers and/or evidence of extenuating circumstances that are beyond the Applicant’s control. Common challenges in securing a contract such as limited availability of homes or a high volume of competitive offers will not be considered extenuating circumstances.
III. If an Applicant enters into a Sales Contract that is subsequently cancelled for any reason, the Applicant must immediately notify the DPAL Program Administrator. If this occurs, the Applicant may attempt to enter into a new contract within their Reservation of Funds timeline and should extenuating circumstances exist, may be granted a one-time extension of 60 days.
All extension requests must be submitted in writing to the DPAL Program Administrator along with supporting documentation at least five (5) business days before the DPAL reservation expires.
If a Conditionally Approved Applicant fails to enter into a Sales Contract by the end of the 120- day period plus any granted extensions, their reservation will be terminated, and the reserved DPAL funds will be unencumbered and made available to the next qualified Applicant. After termination of a reservation, if an Applicant would like another opportunity to purchase a Residential Unit they may reapply during a future funding cycle.
SECTION 3. The City of Newark Preference Criteria
The City of Newark has established a priority system for allocating the limited DPAL funds to eligible households. Priority will be given to income-eligible Applicants based on the priority categories defined in the City of Newark Preference Criteria below. The priority must be met by at least one of the Applicant’s household members that will be listed as owners on title to the subject property for the DPAL Program.
The preference system will be used to establish a ranking of Applicants. Applicants that meet the 1st Priority criteria will be reviewed first, then Applicants who meet the 2nd Priority criteria, and so on and so forth. Preferences will be evaluated at the time of the Pre-Application submittal and Application Lottery, and will be verified during the Program Application process. If it is discovered City of Newark DPAL Implementation Manual 13
that an Applicant does not meet the preference or lacks evidence that they meet the preference, they will lose their lottery priority ranking number and will be reassigned to the appropriate preference category for which they do qualify and placed at the bottom of the list within that group.
PREFERENCE/PRIORITY CRITERIA
1stPriority
(Displacement by
Proposed
Residential
Project)
At least one of the Applicant’s household members who will be listed as an owner on the title of the property purchased with DPAL funds has been displaced from the City of Newark by a proposed residential project. 2nd Priority
(Live or Work)
At least one of the Applicant’s household members who will be listed as an owner on the title of the property purchased with DPAL funds either lives OR works within the City of Newark.
3rd Priority
(All Others)
Any other qualified Applicant household without regard to displacement, residency, or employment.
NOTE
The Applicant’s qualifying household member must be a person whose name will appear on title and who will use the unit as their primary residence.
For residency and employment-based preferences, the Applicant’s household member must currently meet the criteria and have met the criteria for at least the past 6 months at the time of the Pre- Application submittal.
SECTION 4. The DPAL Program Final Approval and Closing Process The DPAL Program requires a minimum of thirty-five (35) calendar days from the time of a Sales Contract submission to the close of escrow to ensure that there is sufficient time to prepare for the loan closing process as outlined below by the DPAL Program Administrator and the City.
The First Mortgage Lender will be responsible for submission of a First Loan Package and the Applicant will be responsible for submission of a Borrower Closing Package, as outlined below.
Any delay in submission of any documents in the First Loan Package or Borrower Closing Package will likely result in a delayed close of escrow.
3.1 First Loan Package
The DPAL First Loan Package is required to be submitted by the First Mortgage Lender on behalf of the Applicant within five (5) business days of the Applicant entering into a Sales Contract. Any delays in the submission of the First Loan Package will delay the Applicant’s close of escrow date.
A. First Loan Package Submittal (Part 1)
The First Mortgage Lender must submit a complete First Loan Package to the DPAL Program Administrator which contains the following information:
City of Newark DPAL Implementation Manual 14
• Copy of all Applicants’ credit report(s)
• First Residential Mortgage Loan Application - Form 1003 (signed and dated) • Underwriting Transmittal Summary - Form 1008
• Loan Estimate
• Preliminary Title Report
• Wire Instructions
• FMV Appraisal
• Confirmation of Applicants’ Names and Vesting
• Hazard Insurance Policy or HO6 Insurance Policy (a Flood Insurance Policy if applicable) with a loss payable endorsement to the City of Newark, as follows:
City of Newark, its Successors and/or Assigns
c/o Community Development Department
Attn: Community Development Director
37101 Newark Blvd., Newark, CA 94560
B. First Loan Package Submittal (Part 2)
Final First Mortgage Lender documents to be submitted by the First Mortgage Lender within five (5) business days before the Applicant closes escrow:
• Closing Disclosure
3.2 Borrower Closing Package
The Applicant must submit a complete Borrower Closing Package to the DPAL Program Administrator at minimum twelve (12) business days prior to the close of escrow. Any delay in submittal will result in a delayed close of escrow.
Borrower Closing Package
• General Release and Waiver of Liability
• General Home Inspection Report
• Pest Control Inspection Report
• Evidence of attendance at a Homebuyer Education Program from an approved agency
• Any additional documents requested by the DPAL Program Administrator to ensure ongoing eligibility requirements
Borrower Closing Package Review Period
The DPAL Program Administrator will review the Borrower Closing Package within five (5) business days of receipt and will notify the First Mortgage Lender and Applicant if any terms included in the Borrower Closing Package do not meet the DPAL Program eligibility requirements.
If the Applicant receives a disqualification letter at this stage based on a property-specific reason (e.g. appraisal shows that the Residential Unit type is ineligible) or does not close the loan for the City of Newark DPAL Implementation Manual 15
property indicated in the First Loan Package and Borrower Closing Package, the Applicant may attempt to enter into contract to purchase a different Residential Unit within the Reservation of Funds timeline.
Should Applicant’s funding reservation expire, and they desire to re-apply, they may submit a new Pre-Application during the next open Pre-Application period should DPAL Program funds become available.
3.3 Final Approval of Down Payment Assistance Loan
If the DPAL Program Administrator verifies that Applicant meets all DPAL Program eligibility requirements, a Final Approval Letter will be issued from the City to the Applicant and First Mortgage Lender signifying that the First Loan Package and Borrower Closing Package have been approved and the Applicant meets the eligibility criteria of the DPAL Program. Final Approval criteria include, but are not limited to the following:
• Applicant Back-End Ratio does not exceed 45%
• Applicant Front-End Ratio is at least 28%
• Residential Unit meets Property Eligibility Requirements • Applicant has sufficient funds for closing costs
• Applicant is a First-Time Homebuyer
• Evidence of attendance at a Homebuyer Education Program from an approved agency.
3.4 Loan Funding Package
At least four (4) business days prior to the DPAL close of escrow date, the following Loan Funding Package must be electronically transmitted from Title Company to the DPAL Program Administrator for review to ensure that they meet DPAL Program requirements:
• The executed original City Note (DPAL Program Note)
• Copy of the signed City Escrow Instructions
• Certified copy of the executed City Promissory Note (DPAL Program Note) • Certified copy of the executed City Deed of Trust (DPAL Program Deed) • Certified copy of the Occupancy, Shared Appreciation, and Refinancing Restriction Agreement
• If the property purchased is a City BMR unit, Certified copy of the BMR Deed Restrictions
• Certified copy of the Request for Copy of Notice of Default • Certified copy of the Grant Deed
• Certified copy of the First Deed of Trust
• Certified copy of the First Note
• Estimated Master Settlement Statement
• Certified copy of the executed Deed of Trust and Promissory Note for any other liens behind the DPAL.
SECTION 5. Loan Repayment Calculation Examples
City of Newark DPAL Implementation Manual 16
The DPAL Program offers a 30-year loan with a fixed 3% interest rate. The loan is deferred with no monthly payments due during the loan term. At the end of the 30 years, or if the loan is paid off early, due to a sale, transfer, or an unapproved refinance prior to the 30-year loan term, the principal and the greater of accrued interest or share of the property’s increased value is due.
The following is an example of the loan repayment calculation based on the greater of accrued interest or share or the property’s increased value. Below are two charts. Chart #1 is an example of the calculation for determining the share of the property’s increase in value as a repayment method. Chart #2 is an example of the calculation for determining the accrued interest only.
These are examples only for the purpose of sharing the calculation assumptions.
Chart #1 – Example Assumptions Shared
Appreciation
Original Purchase Price $500,000
DPAL Amount $100,000
Fair Market Value Resale Price (after 5 years) $635,000 Total Appreciation
Fair Market Value – Original Purchase Price $135,000
City’s Proportional Share of the DPAL
DPAL ÷ Original Purchase Price 20%
Share of Appreciation
% of City’s Proportional Share x Appreciation amount
$27,000
Total Amount Due
Original loan + Share of Appreciation
$127,000
Chart #2 - Example Assumptions Accrued
Interest
Original Purchase Price $500,000
DPAL Amount $100,000
Interest Rate 3%
Fair Market Value Resale Price (after 5 years) $635,000 Total Interest Owed
(Loan amount x Interest rate) x 5 years of ownership $15,000 Total Amount Due
Original loan + accrued interest
$115,000
In the above example the repayment obligation would utilize the Shared Appreciation calculation for a market rate home since it is the repayment amount that is the greater amount of the two options. However, if the home is a BMR unit, the share of appreciation on BMR units will be calculated based on the change in the BMR Affordable Sales Price, which will generally be less than the appreciation on comparable market rate units.
City of Newark DPAL Implementation Manual 17
APPENDIX A: DPAL PROCESSING SUMMARY
Steps Actions
1. Submit a PreApplicationApplicant submits a complete Pre-Application via Program Administrator’s website, or delivery by mail, before the Pre-Application deadline.
2. Submit a
Program
Application
All Pre-Applications will be placed on an interest list in the order that they are received. The DPAL Program Administrator shall review the Pre-Application information submitted to determine basic eligibility to move forward in the application process.
Program Administrator will invite households to submit a Program Application online upon reviewing eligibility to move forward. Letters indicating Conditional Approval and Reservation of Funds or disqualification will be issued accordingly. Processing time may vary depending on the volume of applications received and the complexity of the loan. If an Applicant meets the Program criteria, the City will issue a Conditional Approval and Reservation of Funds and reserve DPAL funds for up to one hundred twenty (120) days. Extensions of Reservations are possible, as described in Section 2.4.
3. Execute a
Sales Contract
During the 120-day period, a Conditionally-Approved Applicant must enter into a contract of sale to purchase a Principal Residence.
4. Submit a First
Loan Package
First Mortgage Lender must submit a complete First Loan Package – Part 1 to Program Administrator within five (5) business days following the execution of a sales contract between an Applicant and a seller.
Note: If a First Loan Package – Part 1 is received by Program Administrator containing a Sales Contract with less than 15 business days remaining to close, it will be returned to the Lender for contract extension.
Lender must submit a complete First Loan Package – Part 2 to Program Administrator at least (5) business days before the close of escrow.
5. Submit a
Borrower
Closing
Package
Applicant must submit a complete Borrower Closing Package to Program Administrator a minimum of twelve (12) business days prior to the close of escrow.
6. Issue a Final
Approval
Program Administrator and City will process the First Loan Package and Borrower Closing Package and issue a Final Approval Letter.
7. Submit a Loan
Funding
Package
Title Company must submit a complete Loan Funding Package to Program Administrator at minimum four (4) business days prior to the close of escrow.
8. Fund and Close
the DPAL
City will fund the DPAL within four (4) business days from the time of approving the Loan Funding Package documents.
SAMPLE OCCUPANCY,
SHARED APPRECIATION,
AND REFINANCING
RESTRICTION AGREEMENT
535\54\2443353.3 1
Down Payment Assistance Loan Program
Occupancy, Shared Appreciation, and Refinancing Restriction Agreement with Option to Purchase on Default– Shared Appreciation Document Completion Checklist ______ Owner (upper right)
______ Property address (upper right)
______ Original Purchase Price (upper right)
_______ City Loan Amount (upper right)
_______ Date of Document (first sentence)
______ Amount of First Lender Loan (Recital F)
______ Name of First Lender (Recital F)
_______ Address of First Lender (Section 20)
_______ Owner’s Initials (Section 23)
________ Owner and City signatures (page 15)
_______ Notaries
________ Property Description (Exhibit A)
________ Copy of executed City Note (Exhibit B)
________ Copy of executed Borrower’s Disclosure Statement (Exhibit C) 535\54\2443353.3 1
NO FEE DOCUMENT
RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO:
City of Newark
{Insert Address}
Attn: TBD
No fee for recording pursuant to
Government Code Section 27383
Officer
______________________________________________________________________________ SPACE ABOVE THIS LINE FOR RECORDER'S USE
OCCUPANCY, SHARED APPRECIATION, AND REFINANCING RESTRICTION
AGREEMENT WITH OPTION TO PURCHASE ON DEFAULT
“Owner”: _________________________________
Property Address (the “Property”):
__________________________________________
Original Purchase Price of the Property: _________
City Loan Amount (the “Loan”):_____________
This Occupancy, Shared Appreciation, and Refinancing Restriction Agreement (the "Agreement") is dated as of ____________, 20__, by and between the City of Newark, a political subdivision of the State of California (the "City") and Owner.
RECITALS
A. Owner is purchasing the Property, which is more particularly described in Exhibit A attached hereto and incorporated by this reference. Owner is an eligible low or moderate income purchaser, who intends to live in the Property as an owner-occupant, and agrees to maintain the Property as Owner's principal residence.
B. The City is providing the Loan to Owner. The Loan is made available to the Owner through the City’s down payment assistance loan program, also known as the “City DALP Program”. The Loan is evidenced by that certain Promissory Note made by Owner for the benefit of the City and dated on even date herewith, in the amount of the Loan (the “Note”) and 535\54\2443353.3 2
secured by a Deed of Trust and Security Agreement by Owner for the benefit of City, dated substantially concurrently herewith (the “Deed of Trust”). A copy of the Note and the Borrower Disclosure Statement, signed by Borrower are attached to this Agreement as Exhibits B and C.
C. As described in this Agreement and the Note, payments on the Loan are deferred, but “Shared Appreciation” based on the increased value of the Property is due upon transfer of the Property, if the Loan is prepaid, at the end of the term of the Loan, or in the event of default by Owner. If there is no increase in the value of your Property when the Loan is repaid, you will still owe the outstanding principal amount of your Loan, but Shared Appreciation will not be due at the time of repayment.
D. The City is requiring the Owner to enter into this Agreement in connection with the Loan. This Agreement evidences the Owner’s obligation to occupy and maintain the home. It also memorializes the Owner’s obligation to pay either a 3% simple interest or a Shared Appreciation pursuant to the Note, which ever is greater and places certain refinancing restrictions on the Property.
E. The Loan was made with _________ financing, which is valuable community funding intended to provide affordable homeownership opportunities in the City of Newark. To protect and preserve this resource and as a condition to the Loan, it is necessary, proper, and in the public interest for the City to administer the occupancy, financing, and Shared Appreciation controls by means of this Agreement.
F. Owner is borrowing a first mortgage loan in the amount of _____ Dollars (the “First Lender Loan”) from _________________ (the “First Lender”). The First Lender Loan is secured by a deed of trust recorded in the Official Records of Alameda County substantially concurrently herewith.
NOW, THEREFORE, in consideration of the benefits received by the Owner from the Loan, the City and Owner agree as follows:
AGREEMENT
The foregoing recitals are hereby incorporated by reference and made part of this Agreement.
1. DEFINITIONS
The following terms are specially defined for this Agreement and their definitions can be found in the sections indicated below:
A. "Agreement" - First sentence on page 1
B. "Appreciation Amount" - The amount calculated by subtracting the original purchase price of the Property, which is set forth on the first page of this Agreement from one of the following amounts, as applicable: (i) in the event of a sale of the Property at Fair Market Value, the amount received by the Owner as the sales price of the Property, as certified by the Owner under penalty of perjury, 535\54\2443353.3 3
or (ii) in the event of a Transfer other than sale of the Property at Fair Market Value, in the event of prepayment, or in the event of a default, the Fair Market Value of the Property; or (iii) in the event a creditor acquires title to the Property through a deed in lieu of foreclosure, a trustee's deed upon sale, or otherwise, the amount paid for the Property at a creditor's sale of the Property. Owner is responsible for all broker's fees and other closing costs. Such fees and closing costs are not deducted from the calculation of the Appreciation Amount.
C. "CalHFA" is the California Housing Finance Agency
D. "City" – First sentence on page 1
E. "Declaration of Default" – Section 10.C
F. "Deed of Trust" – Recital B
G. "Default" – Section 10.A
H. "Excess Rents" – Section 3.B
I. "Fair Market Value" - Section 8.A
J. "First Lender" - Recital F. Any successor to the First Lender must be approved in advance by the City pursuant to Section 9.A below before such successor will be considered a “First Lender” under this Agreement.
K. "First Lender Deed of Trust" - Recital F
L. "First Lender Loan" - Recital F
M. "HUD" is the United States Department of Housing and Urban Development.
N. “Loan” – the Loan from the City to Borrower as evidenced by the Note, in the amount set forth on the first page of this Agreement.
O. “Note” – Recital B. A copy of the Note signed by Owner is attached as Exhibit B.
P. "Permitted Transfer" – Section 5.B
Q. "Property" – First page of this agreement and more particularly described in Exhibit A.
R. "Owner" - Page 1
S. "Permitted Encumbrance Amount" – Section 9.B
T. "Purchaser" – Section 6.B.1
535\54\2443353.3 4
U. “Shared Appreciation" – The interest, if any, due on the Loan, equal to the amount resulting from dividing the principal amount of the Loan by the original purchase price of the Property (as set forth on the first page of this Agreement) then multiplying that percentage by the Appreciation Amount.
V. "Term" – Section 13
W. "Transfer" - Section 5.A
X. "VA" is the United States Veterans Administration.
The following exhibits are attached to this Agreement:
Exhibit A: Legal Description of the Property
Exhibit B: Copy of Executed Note
Exhibit C: Copy of Executed Borrower’s Disclosure Statement Exhibit D: Form of Owner Occupancy Certification
2. OWNER CERTIFICATIONS; OWNER OCCUPANCY REQUIREMENT
The Owner certifies that the financial and other information previously provided in order to qualify to purchase the Property is true and correct as of the date first written above. The Owner further certifies that the Owner has not held an ownership interest in a home during the three (3) year period immediately prior to the date of this Agreement. The Owner shall occupy the Property as the Owner's principal place of residence for the Term of this Agreement. The Owner shall be considered as occupying the Property as the Owner's principal place of residence if the Owner is living in the unit for at least ten (10) months out of each calendar year, maintains a valid homeowner's property tax exemption, and provides reasonably requested documentation to verify occupancy. On or before {Insert Date} of each year, the Owner shall provide the City with an annual certification that the Owner is occupying the Property as his or her principal place of residence and that Owner is maintaining the insurance required under this Agreement, the Note and the Deed of Trust. The form of occupancy certification that the Owner will provide to the City is attached to this Agreement as Exhibit D.
3. RENTAL OR LEASING OF PROPERTY
A. Prohibition on Renting or Leasing the Property. The Owner shall not rent or lease all or any portion of the Property except with the prior express written consent of the City.
B. Payment of Excess Rents. Any lease of all or any portion of the Property in violation of this Agreement is prohibited. The Owner agrees that, in the event the Owner rents or leases all or any portion of the Property in violation of this Section 3, any rents paid to the Owner by the tenant or lessee in ("Excess Rents") shall be due and payable to the City immediately upon receipt thereof by the Owner. Such Excess Rents shall be considered a 535\54\2443353.3 5
recourse debt of the Owner to the City, which the City may collect by legal action against the Owner and/or by foreclosure under the Deed of Trust.
4. MAINTENANCE AND INSURANCE REQUIREMENTS
A. Maintenance. The Owner shall maintain the Property, including landscaping, in good repair and in a neat, clean and orderly condition and will not commit waste or permit deterioration of the Property.
B. Taxes. The Owner shall promptly pay all property taxes due on the Property prior to any delinquency.
C. Insurance. The Owner shall maintain a standard all risk property insurance policy equal to the replacement value of the Property (adjusted every five (5) years by appraisal, if requested by the City), naming the City as an additional insured. Additional insurance requirements are set forth in the Deed of Trust.
5. TRANSFER OF THE PROPERTY
A. Transfer. Any Transfer of the Property will be subject to the provisions of this Agreement. "Transfer" means any sale, assignment or transfer, voluntary or involuntary, of any interest in the Property, including, but not limited to, a fee simple interest, a joint tenancy interest, tenancy in common, a life estate, a leasehold interest (unless approved as provided in Section 3 of this Agreement), an interest evidenced by a land contract by which possession of the Property is transferred and Owner retains title, or a deed of trust. Any Transfer without satisfaction of the provisions of this Agreement is prohibited and shall constitute a Default.
B. Permitted Transfers. Notwithstanding Section 5.A, the following forms of Transfer shall be considered a "Permitted Transfer" and shall not constitute a Default, but all such transferees shall continue to be bound by this Agreement:
(1) To a spouse or domestic partner who become a co-owner of the Property and a co-obligor under the Note;
(2) Between spouses or domestic partners as part of a dissolution proceeding or divorce;
(3) To an inter vivos revocable trust in which Owner is the beneficiary; (4) By operation of law on the death of a joint tenant; (5) A transfer by devise or inheritance to an existing spouse, child who is low or moderate income as determined by the City in accordance with the DALP Program guidelines and policies, or domestic partner of Owner following death of Owner; or (6) A City approved refinancing of the First Lender Loan in accordance with Section 9.C of this Agreement.
535\54\2443353.3 6
However, Owner shall provide written notice of all Permitted Transfers to the City under Section 5.C, all owners of the Property must occupy the Property as his or her principal place of residence, and all transferees shall affirmatively assume the obligations of Owner under this Agreement, the Note and the Deed of Trust or, at the option of the City enter into a new Occupancy, Shared Appreciation and Refinancing Restriction Agreement in a form that is substantially similar to this Agreement.
If a transfer occurs by devise or inheritance and (1) the heir does not qualify pursuant to Section 5.B(5) and (2) the heir has not repaid the Loan within ninety (90) days following such transfer, the Owner (and its succeeding heir) will be in breach of this Agreement, and the City may declare a Default and pursue the remedies set forth in Section 10 below.
C. Notice of Permitted Transfer. Owner shall provide notice to the City of any transfers described in Section 5.B of this Agreement within thirty (30) days of the date of transfer.
6. SALE OR TRANSFER BY OWNER
A. Transfer Price. Owner may Transfer or sell the Property for no less than the Fair Market Value (as defined below).
B. Notice to City and Required Documentation. At least thirty (30) days prior to the close of escrow for the Transfer of the Property, the Owner shall provide the City with the following documentation:
(1) The name and address of the person to whom Owner proposes to Transfer the Property (the "Purchaser");
(2) The final sales contract, escrow instructions, and all other documents setting forth all the terms of the sale of the Property, including at least (a) the sales price; (b) the price to be paid for the Owner's personal property or services, if any, and any credits, allowances or other consideration, if any; (c) the amount of any real estate commission to be paid, if any; and (d) estimated HUD-1 Settlement Statement;
(3) A copy of the MAI or other qualified appraisal of the Property, subject to the approval of the City;
(4) A written certification from the Owner and the Purchaser under penalty of perjury, in a form approved by the City, that the sale shall be closed in accordance with the terms of the sales contract and other documents submitted to the City, and that neither the Purchaser nor any other person has paid or will pay to the Owner money or any other consideration in addition to the consideration included in the sales contract and documents submitted to the City.
The written certification shall also include a provision stating that, in the event false or misleading statements are made in any documents or the certification submitted to the City, the Owner and the Purchaser recognize that the City shall have the right to file an action at law or in equity as may be appropriate;
535\54\2443353.3 7
(5) The name of the title company escrow holder for the sale of the Property, the escrow number, and name, address, and phone number of the escrow officer.
C. Final HUD-1 Settlement Statement. Upon the close of escrow, the Owner shall provide the City with a copy of the final HUD-1 Settlement Statement showing the purchase price paid for the Property and all other payments from escrow.
7. REPAYMENT OF NOTE
A. Repayment in Full. All outstanding principal and interest due under the Note, including the Shared Appreciation, shall be immediately due and payable to the City pursuant to the Note which requires repayment in full on:
(1) The date of the Transfer of the Property, other than a Permitted Transfer in accordance with Section 5.B and Section 5.C of this Agreement; (2) Upon the City's declaration of a Default by the Owner under this Agreement, the Note, or the Deed of Trust;
(3) If the Owner fails to occupy the Property as the Owner’s principal residence in accordance with Section 2 above;
(4) In the event of a refinance of the First Lender Loan that is not consented to by the City pursuant to Section 9;
(5) At the end of the Term of the Note.
Upon Borrower’s payment of all amounts owed under the Note, the City and Borrower will release this Agreement from title.
B. Prepayment. As more particularly set forth in the Note, Owner may prepay all or part of the balance due under this Note; provided however, any prepayment, including a partial prepayment, must include Shared Appreciation due at the time of prepayment. The amount of Shared Appreciation due upon prepayment shall be determined at the time of any partial or full prepayment based on the Fair Market Value of the Property. In the event Owner prepays all or any portion of the Note, the amount of Shared Appreciation due upon prepayment shall be determined at the time of prepayment and allocated between Shared Appreciation and principal in the same proportion as the ratio of each to the total amount due. Following a prepayment, the percentage of Shared Appreciation due on the Loan shall be recalculated to reflect the pay down in principal owed under the Note. The recalculated Shared Appreciation shall equal the outstanding principal amount of the Note divided by the original purchase price of the Property.
The prepayment and recalculated Shared Appreciation shall be documented by the parties through an addendum to this Agreement that is recorded against title to the Property.
8. DETERMINATION OF FAIR MARKET VALUE
A. The unrestricted market price of the Property without taking this Agreement into account shall be the "Fair Market Value" of the Property. 535\54\2443353.3 8
B. If it is necessary to determine the Fair Market Value of the Property, it shall be determined by a certified MAI or other qualified real estate appraiser approved in advance by the City. If possible, the appraisal shall be based upon the sales prices of comparable properties sold in the market area during the preceding three (3)-month period. The cost of the appraisal shall be the Owner's responsibility, unless the appraisal is obtained from a Purchaser.
C. Nothing in this Section shall preclude the Owner and the City from establishing the Fair Market Value of the Property by mutual agreement in lieu of an appraisal.
9. REFINANCE OF FIRST LENDER LOAN; NEW SUBORDINATE LOANS A. City Consent Required. The Owner covenants and agrees not to place any mortgage or deed of trust, including any line of credit, on the Property without obtaining prior written consent of the City.
B. Permitted Encumbrance Amount. The "Permitted Encumbrance Amount", is defined as the then outstanding balance of the original First Lender Loan plus refinance and closing costs.
C. Refinance. The City shall permit a prepayment and refinance of the First Lender Loan, shall consent to a new First Lender and First Lender Loan, and shall agree to subordinate this Agreement and the Deed of Trust to the refinanced First Lender Loan provided that:
(1) The City has approved the proposed new first loan and related documents in accordance with Section 9.A.
(2) Following such refinance, the principal amount of all debt secured by the Property does not exceed the Permitted Encumbrance Amount (no “cash out”); (3) The new First Lender Loan is a fully amortized fixed rate loan, is fully documented, has a term not exceeding thirty (30) years, requires no balloon payments, and otherwise meets the guidelines and requirements of the DALP Program; and (4) The lender making the new First Lender Loan is a bank, credit union, or savings and loan association approved in advance by the City.
First Lender Loans with negative amortization are not permitted under the DALP Program.
Any first mortgage loan or first mortgage lender other than the First Lender Loan and First Lender identified in Recital F of this Agreement must be approved by the City, and comply with the terms and of this Agreement before such first mortgage loan or first mortgage lender will be considered a “First Lender” or “First Lender Loan” under this Agreement.
D. Subordinate Loans. New subordinate loans, including equity lines of credit, are not permitted except as expressly approved by the City in writing.
E. Request for Notice of Default. As a condition for subordination of the Deed of Trust or approval of a subordinate loan, a request for notice of default and notice of sale 535\54\2443353.3 9
regarding the refinanced First Lender Loan or subordinate loan shall be recorded in the Office of the Recorder of the City of Alameda for the benefit of the City.
F. Purpose of Restrictions. The requirements of this Section are necessary to ensure the continued affordability of the Property to Owner, to preserve City housing funds for low and moderate income households, and to minimize the risk of loss of the Property by Owner through default and foreclosure of mortgage loans. Owner further acknowledges that violation of the provisions of this Section shall constitute a Default under this Agreement.
10. DEFAULTS
A. Events Constituting Default. The following events shall constitute a "Default" by the Owner under this Agreement:
(1) The City determines that the Owner has made a misrepresentation to obtain the benefits of purchase of the Property or in connection with its obligations under this Agreement;
(2) The Owner fails to owner occupy the Property, as required by Section 2 above;
(3) The Owner rents or leases the Property, not in compliance with Section 3 above;
(4) The Owner otherwise Transfers, or attempts to Transfer, the Property in violation of this Agreement;
(5) The Owner fails to provide information to the City necessary to determine Owner's compliance with the requirements of this Agreement, subject to the cure periods set forth in Section 10.C.
(6) Judicial foreclosure proceedings are commenced regarding the Property; (7) A notice of default is issued under any financing secured by the Property, or the City receives any other notice of default as provided in Civil Code Section 2924b, or the Owner is in default on any other financing secured by the Property. (8) A notice of default is issued under any covenant or other agreement recorded against the Property.
(9) The Owner executes any deed in lieu of foreclosure transferring ownership of the Property;
(10) A lien is recorded against the Property other than the lien of the First Lender Loan, the City Loan, or a loan approved by the City as provided in Section 9.D; or (11) The Owner otherwise fails to comply with the requirements of this Agreement, the Note, or the Deed of Trust, subject to the cure periods set forth in Section 10.C. 535\54\2443353.3 10
B. Remedies. Upon a declaration of Default by the City under this Agreement, the City may exercise any remedies at law or in equity, including without limitation any or all of the following, none of which shall be an exclusive remedy:
(1) Declare all sums due under the Note immediately due and payable without further demand;
(2) Invoke the power of sale under the Deed of Trust;
(3) Exercise the Option to Purchase on Default described in Section 10.E. (4) Apply to a court of competent jurisdiction for such relief at law or in equity as may be appropriate; and
(5) Declare a Default under the Note and Deed of Trust and pursue all City remedies under the Deed of Trust.
C. Notice and Cure.
(1) The City may give written notice to the Owner specifying the nature of any violation. If the violation is not corrected to the satisfaction of City within a reasonable period of time, not longer than thirty (30) days after the date the notice is mailed, the City may declare a Default under this Agreement by written notice to Owner ("Declaration of Default").
However, if the Owner is in default under Sections 10.A (1) through (4) or (6) through (10), the City may send a Declaration of Default without providing an opportunity to cure and may exercise its remedies upon Default as provided in this Section. (2) The City shall notify the First Lender in the manner set forth in Section 21 of this Agreement if the City has sent a Declaration of Default under this Agreement or declared a Default under the Note or the Deed of Trust.
D. Recordation of Requests for Notice. Requests for notice of default and any notice of sale under any deed of trust or mortgage with power of sale encumbering the Property may be recorded by the City in the Office of the Recorder of the City of Alameda for the benefit of the City.
E. Purchase Option Upon Default. Notwithstanding, and in addition to, the remedies provided the City in Section 10.B, the Owner hereby grants to the City or its assignee the option to purchase the Property effective upon the declaration of a default by the City pursuant to Section 10.A and B above, and subject to notice and cure rights set forth in Section 10.C. (1) This option to purchase is referred to in this Agreement as the “City Option to Purchase Upon Default” and is given in consideration of the economic benefits received by the Owner resulting from Owner's participation in the City’s Down Payment Assistance Program.
(2) The City Purchase Option Upon Default may be exercised upon a default under this Agreement or upon default under any promissory note, deed of trust or any other lien, 535\54\2443353.3 11
including a judgment lien, recorded against the Property. The City shall have thirty (30) days after a default is declared by the City to notify the Owner and the First Lender of its decision to exercise its option to purchase. Not later than ninety (90) days after the notice is given by the City to the Owner of the City's intent to exercise its option, the City or its designee shall purchase the Property for its Fair Market Value and title shall be delivered by the Owner to the City by grant deed, free and clear of any mortgage or other liens, unless approved in writing by the City. In the event of exercise of the City Purchase Option upon Default and purchase of the Property by the City or its assignee, the Owner shall permit a final walk-through of the Property by the City or its assignee in the final three (3) days prior to close of escrow on the Transfer.
The City may assign its rights to purchase the Property under this Section 10.
11. INDEMNITY
Owner agrees to defend, indemnify, and hold the City and its officers, employees, agents, and/or board members harmless from all losses, damages, liabilities, claims, actions, judgments, costs, and reasonable attorneys' fees that the City may incur as a direct or indirect consequence of: (1) Owner's Default, performance, or failure to perform any obligations as and when required by this Agreement or the Deed of Trust; or (2) the failure at any time of any of Owner's representations to the City to be true and correct.
12. TERM OF AGREEMENT
All the provisions of this Agreement, including the benefits and burdens, run with the Property and this Agreement shall bind, and the benefit hereof shall inure to, the Owner, his or her heirs, legal representatives, executors, successors in interest and assigns, and to the City and its successors until such time as the Owner has paid to City all principal and interest due under the Note, including but not limited to the payment of all Shared Appreciation (the "Term").
13. SUPERIORITY OF AGREEMENT
The Owner covenants that he or she has not, and will not, execute any other agreement with provisions contradictory to or in opposition to the provisions of this Agreement, and that, in any event, this Agreement is controlling as to the rights and obligations between and among the Owner, the City and their respective successors.
14. SUBORDINATION
Notwithstanding any other provision herein, the provisions of this Agreement and the Deed of Trust shall be subordinate to the lien of the First Lender Deed of Trust and shall not impair the rights of the First Lender in the event of default under the First Lender Deed of Trust by the Owner. Such remedies under the First Lender Deed of Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure. After such foreclosure or acceptance of a deed in lieu of foreclosure, this Agreement and the Deed of Trust shall be forever terminated and shall have no further effect as to the Property or any transferee thereafter; provided, however, if the holder of such First Lender Deed of Trust acquires title to the Property pursuant to a deed or assignment in lieu of foreclosure, this Agreement and the Deed of Trust shall automatically terminate upon such acquisition of title, only if (i) the City has been given written notice of default under such First Lender Deed of Trust with a sixty (60)-day cure period 535\54\2443353.3 12
(which requirement shall be satisfied by recordation of a notice of default under California Civil Code Section 2924) and (ii) the City shall not have cured the default within such sixty (60)-day period or commenced to cure and given its firm commitment to complete the cure in form and substance acceptable to the First Lender.
15. NONDISCRIMINATION
The Owner covenants by and for itself and its successors and assigns that there shall be no discrimination against or segregation of a person or of a group of persons on account of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry or national origin in the sale, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall the Owner or any person claiming under or through the Owner establish or permit any such practice or practices of discrimination or segregation with reference to the use, occupancy, or transfer of the Property. The foregoing covenant shall run with the land.
16. RIGHTS OF HUD, CALHFA AND VA
Notwithstanding any other provision in this Agreement to the contrary, this Agreement shall not diminish or affect the rights of HUD, CalHFA, or the VA under the First Lender Deed of Trust insured by HUD, held by CalHFA, or guaranteed by the VA and utilized to purchase the Property or recorded against the Property in compliance with Section 9 above. Notwithstanding any other provision in this Agreement to the contrary, all of the provisions of this Agreement shall terminate and have no further force and effect as to the Home or any transferee if the title is acquired by HUD, CalHFA, or the VA, or another party upon foreclosure of a deed of trust securing a loan insured by HUD, held by CalHFA, or guaranteed by the VA.
17. INVALID PROVISIONS
If any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, then such provision or provisions shall be deemed severable from the remaining provisions contained in this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.
18. CONTROLLING LAW
The terms of this Agreement shall be interpreted under the laws of the State of California.
The venue for any legal action pertaining to this Agreement shall be Alameda City, California.
19. NO WAIVER
No delay or omission in the exercise of any right or remedy of the City upon any default by Owner shall impair such right or remedy or be construed as a waiver. The City's failure to insist in any one or more instance upon the strict observance of the terms of this Agreement shall not be considered a waiver of the City's right thereafter to enforce the provisions of the Agreement. The City shall not waive its rights to enforce any provision of this Agreement unless it does so in writing, signed by an authorized agent of the respective party. 535\54\2443353.3 13
20. NOTICES
All notices required herein shall be sent by certified mail, return receipt requested, express delivery service with a delivery receipt, or personal delivery with a delivery receipt and shall be deemed to be effective as of the date received, the date delivery was refused, or the date returned as undeliverable as indicated on the return receipt as follows:
To the Owner:
At the address of the Property.
To the City:
{Insert Address}
Attn: TBD
To the First Lender:
[To be inserted]
The parties may subsequently change addresses by providing written notice of the change in address to the other parties in accordance with this Section.
21. COVENANTS RUNNING WITH THE LAND
A. Owner hereby subjects the Property to the covenants and restrictions set forth in this Agreement. Owner hereby declares its express intent that the covenants and restrictions set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon all parties having any interest in the Property throughout the Term of this Agreement. Each and every contract, deed, lease or other instrument covering, conveying or otherwise transferring the Property or any interest therein, as the case may be, shall conclusively be held to have been executed, delivered and accepted subject to this Agreement regardless of whether the other party or parties to such contract have actual knowledge of this Agreement.
B. The Owner and the City hereby declare their understanding and intent that: (i) the covenants and restrictions contained in this Agreement shall be construed as covenants running with the land as provided in California Civil Code Section 1468 and not as conditions which might result in forfeiture of title by Owner; (ii) the burden of the covenants and restrictions set forth in this Agreement touch and concern the Property in that the Owner's legal interest in the Property may be rendered less valuable thereby; and (iii) the benefit of the covenants and restrictions set forth in this Agreement touch and concern the land by enhancing and increasing the enjoyment and use of the Property by eligible purchasers, the intended beneficiaries of such covenants and restrictions.
535\54\2443353.3 14
C. All covenants and restrictions contained herein without regard to technical classification or designation shall be binding upon Owner for the benefit of the City and eligible purchasers and such covenants and restrictions shall run in favor of such parties for the entire period during which such covenants and restrictions shall be in force and effect, without regard to whether the City is an owner of any land or interest therein to which such covenants and restrictions relate.
22. ENTRY BY THE CITY.
Owner grants to the City and its duly authorized representatives the right to enter the Property at reasonable times and in a reasonable manner for purposes of inspecting the Property to determine compliance with the Note, the Shared Appreciation Agreement, and the Deed of Trust.
23. OWNER'S ACKNOWLEDGEMENT OF SHARED APPRECIATION
Owner acknowledges and agrees that:
A. This Agreement places certain restrictions and limits the price for which Owner may sell the Property. Owner may not enjoy the same economic or other benefits from owning the Property that Owner would enjoy if this Agreement did not exist.
B. Absent the provisions of this Agreement, the Property could not be made available to eligible purchasers, such as the Owner, at an affordable price.
C. Owner understands all of the provisions of this Agreement. Owner agrees to the provisions of this Agreement with the understanding that this Agreement will remain in full force and effect as to the Property throughout the Term of this Agreement.
D. OWNER UNDERSTANDS THAT THE DETERMINATION OF THE FAIR
MARKET VALUE OF THE PROPERTY CAN BE MADE ONLY AT THE TIME OF THE
PROPOSED TRANSFER AND THAT THE OWNERS SHARE OF THE SALES PRICE MAY
NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR PROPERTY WHICH IS NOT ENCUMBERED BY THIS AGREEMENT.
________ ______
Initialed by Owner(s)
24. Administrator.
The City may engage one or more third party entities to administer and facilitate this Agreement and the City Loan. The City will provide the Owner with written notice of any such administrator, or change thereto.
[Signatures Follow on Subsequent Page]
535\54\2443353.3 15
IN WITNESS WHEREOF, the parties have executed this Agreement on or as of the date first written above.
CITY:
CITY OF NEWARK, a political subdivision of the State of California
By: ________________________________
TBD
OWNER:
By:________________________________
Name: ______________________________
By:________________________________
Name: ______________________________
535\54\2443353.3
STATE OF CALIFORNIA )
)
COUNTY OF __________________ )
On ____________________, before me, ___________________________, Notary Public, personally appeared ______________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
______________________________________
Name: ______________________________
Notary Public
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 535\54\2443353.3
STATE OF CALIFORNIA )
)
COUNTY OF __________________ )
On ____________________, before me, ___________________________, Notary Public, personally appeared ______________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify UNDER PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
______________________________________
Name: ______________________________
Notary Public
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 535\54\2443353.3 A-1
EXHIBIT A
Legal Description of the Property
DRAFT SAMPLE B-1
Exhibit B
Promissory Note
535\54\2443353.3 C-1
Exhibit C
Borrower’s Disclosure Statement
B-1
163\15\817770.5
Exhibit D
Form of Owner Occupancy Certification
To: City of Newark ("City")
From: _________________________ [name of owner(s)] ("Owner(s)") Address of Home: __________________________ ("Property") Date: _______________________
By signature below, I/we _____________________ [insert name or names of Owner] hereby certify to the City under penalty of perjury that I/we occupy the home located at _______________________________________ [insert address] (the "Home") as my/our principal place of residence and that I/we have occupied the Home for ___________(___) [insert number] months of the calendar year _____________ [insert previous calendar year].
I/we further certify that we are not and have not rented all or any portion of our home to another person or entity. Attached to this letter is a copy of _________ [insert utility bill or driver's license] showing my place of residence. Also attached to this certification is evidence of the property insurance for my Home required by Section 5 of the City’s Deed of Trust and Security Agreement and Section 4 C of the Occupancy, Shared Appreciation, and Refinancing Restriction Agreement with Option to Purchase on Default between me/us and the City.
This Owner Occupancy Certification is signed on _______________ __, 20__, under penalty of perjury.
By:________________________________
Owner [type name]
By:________________________________
Owner [type name]
Due Date: {Insert Date} of each calendar year.
Attach copy of utility bill or driver's license showing address of Home.
Attach evidence of property insurance for the Home.
B
-2
163\15\817770.5
Item F. 3.
DATE 05/14/2026
TO Honorable Mayor and City Council Members
FROM Kristopher Kokotaylo, City Attorney
SUBJECT Waive full reading and introduce by title only an ordinance of the City Council of the City of Newark repealing and replacing Chapter
2.11, “Election Campaigns” of the Newark Municipal Code SUMMARY AND RECOMMENDATION
The City's current municipal code establishes a limit regarding the ability of candidates to raise campaign contributions based upon whether candidates opt into the City’s “voluntary expenditure ceiling”. Newark Municipal Code (“NMC”) Chapter 2.11, “Election Campaigns”, (the “Code”) provides that contributions from an individual, company, committee or other group are limited to $500 each if a candidate accepts the voluntary expenditure ceiling, and $100 each if a candidate does not accept the voluntary expenditure ceiling. The voluntary expenditure ceiling is established at an amount equal to $1 per resident, with the number of residents confirmed by resolution at a City Council meeting, usually in April of election years.
As currently structured, the Code is likely inconsistent with the United States Constitution. Courts have held that government-imposed mandatory expenditure limits are unconstitutional.
In order to address this inconsistency, staff recommends that the City Council waive full reading and introduce by title only an ordinance repealing and replacing the Code with an update that eliminates the expenditure ceiling provision and establishes a standalone campaign contribution limit consistent with the Constitution and related case law. The proposed ordinance would establish a campaign contribution limit of $800 per candidate or candidate controlled committee.
BACKGROUND
Newark Municipal Code Chapter 2.11
The Code provides that candidates for Mayor or City Council are subject to a campaign contribution limit based upon whether candidates opt into the City’s “voluntary expenditure ceiling”, which is established at an amount equal to $1 per resident. The voluntary expenditure limit was $47,459 for the November 5, 2024, Municipal Election.
Under the Code, contributions from an individual, company, committee or other group are limited to $500 each if a candidate accepts the voluntary expenditure ceiling, and $100 each if a candidate does not accept the voluntary expenditure ceiling. Thus, there are potentially different contribution limits depending on whether a candidate agrees to limit their campaign spending during any given election.
The impact of this is that the ability of a candidate to utilize funds in support of their campaign is restricted based on their acceptance of a lower campaign contribution threshold. Courts have held that government-imposed mandatory expenditure limits are unconstitutional. Any voluntary expenditure limit must be truly voluntary and not coercive or otherwise punitive.
DISCUSSION/ANALYSIS
Proposed Ordinance
Consistent with the above considerations, legal research indicates that laws related to campaign expenditure limits which establish varying contribution amounts based on acceptance of the expenditure limits could be subject to legal challenge. In light of that, staff has drafted an ordinance to align the City’s concerns of election integrity with constitutional and legal requirements. Below is a summary of the proposed ordinance.
Voluntary Expenditure Ceiling
Consistent with constitutional requirements, the proposed ordinance excludes the voluntary expenditure ceiling provision. Some cities have adopted a voluntary expenditure limit provision that is not mandatory or otherwise punitive. For example, Pleasanton, Livermore and Union City have voluntary expenditure limits, but there is no penalty for a candidate that declines to accept the limit. As a result, staff recommends proceeding without this provision as the City cannot propose a measure that would have an adverse impact on a campaign for electing to not accept the limit. Including such a provision would establish additional administrative requirements without meaningful enforcement.
Campaign Contribution Limit
The proposed ordinance establishes a campaign contribution limit of $800 for all candidates. The individual contribution limit was last increased to $500 in 2007. Since 2007, local Consumer Price Index (CPI) increase is estimated at 60 – 70%. A 60% increase to the 2007 limit of $500 is $300. Applying the low range of this CPI estimate would increase the $500 individual contribution limit to $800.
Under state law, Assembly Bill 571, cities that do not establish a campaign contribution limit default to a limit of $5,900. Within the Tri-City area, Union City has a campaign contribution limit of $800 and Fremont established a campaign contribution limit of $640 in 2018 that adjusts by CPI biennially and is currently $850. A campaign contribution limit of $800 would align with other cities in the Tri-City area. Attached as Appendix A is a summary of comparable cities in Alameda County and their current Appendix A is a summary of comparable cities in Alameda County and their current campaign contribution limits. As Appendix A shows, 7 out of the 10 cities identified defer to the state law limit of $5,900 while 3 cities (Dublin, Union City and Fremont) have established their own limits. Pleasanton and Livermore have a "voluntary" limit that is not mandatory for candidates. Staff has excluded certain charter cities with unique ordinances that are inconsistent with a direct campaign contribution limit approach from Appendix A.
Other Ordinance Provisions
The proposed ordinance includes a provision to clarify that the contribution limit applies during general and special election periods. Thus, the contribution limit is the maximum amount that a candidate can receive from a single source during the full election period. Additionally, consistent with constitutional principles, there is no limitation on the ability of a candidate to use their own funds for their campaign.
Related to aggregation of funds, the proposed ordinance includes provisions that address how contributions from related entities or persons should be calculated. For example, the proposed ordinance provides that business entities in a parent-subsidiary relationship and with the same controlling owner should be considered one person for purposes of campaign contributions unless the business entities act completely independently.
In some instances, campaigns will receive loans. The proposed ordinance exempts loans from the campaign contribution limit but provides that unpaid debt after one year following the election will be considered a contribution. Debtors that remain unpaid after one year following the election will be deemed to have made a contribution and any excess contributions above $800 will be considered a violation unless the debtor has made good faith efforts to recover the debt.
Finally, the proposed ordinance clarifies that contributions made to campaign debt retirement committees are still subject to the campaign contribution limits and and provides that excess campaign contributions must be returned within forty-eight hours of the candidate or committee having actual knowledge of such excess contribution.
FISCAL IMPACT
There is no direct fiscal impact associated with approving the proposed ordinance.
STRATEGIC PRIORITY AREA
Boost Financial Resilience and Excellence in Service Delivery Strengthen Community through Education and Engagement
REVIEW AND APPROVAL
Prepared by - Kristopher J. Kokotaylo, City Attorney
Reviewed by - Lenka Hovorka, Assistant City Manager
Approved by - David J. Benoun, City Manager
Attachments
Appendix A - Other Contribution Limits
Proposed Campaign Contribution Limit Ordinance
Presentation Campaign Contribution Limit Ordinance
Current Chapter 2.11 Election Campaigns Code
Current Chapter 1.16.010 - Violation - Penalty (for reference only; no proposed changes)
Appendix A
City Individual
Contribution
Limit
Notes
Alameda N/A Defers to state limit of $5,900
Albany N/A Defers to state limit of $5,900
Dublin $500
Emeryville N/A Defers to state limit of $5,900
Fremont $850 Increases by CPI since 2018 adoption
Livermore $1,000** Defers to state limit of $5,900
Piedmont N/A Defers to state limit of $5,900
Pleasanton $1,000* Defers to state limit of $5,900
San
Leandro
N/A Defers to state limit of $5,900
Union City $800
* Pleasanton has a “voluntary campaign contribution limit” that is voluntary at the option of the candidate. Pleasanton Municipal Code Section 1.22.025 states “it is acknowledged that the contribution limits of this chapter are voluntary, and candidates, candidates' committees and other persons must still adhere to the requirements of state law regarding state contribution limits.” **Livermore has a “voluntary campaign contribution limit” provision in its municipal code that is identical to Pleasanton’s.
ORDINANCE NO. ______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWARK REPEALING AND REPLACING CHAPTER 2.11,
“ELECTION CAMPAIGNS” OF THE NEWARK MUNICIPAL CODE
WHEREAS, the Newark Municipal Code (“NMC”) currently includes Chapter 2.11, “Election Campaigns”; and
WHEREAS, NMC Chapter 2.11 requires amendment to align with Constitutional case law; and WHEREAS, the City Council desires to minimize the potential for undue influence by individuals or groups on the Mayor and Council Members by placing realistic limits on the amount of money that individuals or groups may contribute to political campaigns in municipal elections; and WHEREAS, the City Council desires to repeal and replace Chapter 2.11 of the NMC to revise the regulation of campaign expenditure for the Mayor and Council Members.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NEWARK DOES ORDAIN AS FOLLOWS:
SECTION 1. Recitals. The above recitals (“Recitals”) are true and correct and made a part of this Ordinance.
SECTION 2. CEQA. Approval of the amendments is exempt from further environmental review under the general rule in California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) that CEQA only applies to projects that have the potential for causing a significant effect on the environment. As a series of text amendments and additions, it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment.
SECTION 3. Municipal Code Amendments. Chapter 2.11 “Election Campaigns,” of the Newark Municipal Code is hereby repealed in its entirety and replaced with the text in Exhibit A, incorporated herein and made a part of this Ordinance.
SECTION 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.
SECTION 5. Publication and effective date. Within fifteen (15) days from and after adoption, this Ordinance shall be published once in a newspaper of general circulation printed and published in Alameda County and circulated in the City of Newark, in accordance with California Government Code Section 36933. This Ordinance shall take effect thirty (30) days after its adoption.
EXHIBIT A
Chapter 2.11 CAMPAIGN CONTRIBUTION LIMITATIONS IN MUNICIPAL
ELECTIONS
2.11.010 Title, purpose, and intent.
It is the purpose and intent of the City Council in enacting this chapter to minimize the potential for undue influence by individual or groups on the Mayor and Council Members by placing realistic limits on the amount of money that individuals or groups may contribute to political campaigns in municipal elections while providing for a level of discussion of public issues adequate for a meaningful election campaign; to insure and promote integrity, honesty and fairness in decisions of public policy; to provide for a campaign contribution and expenditure reporting process that will inform the public; to enhance the opportunity for challengers to be competitive with incumbents.
In seeking to establish such limitations on campaign contributions, it is the intent of the City Council to promote a broader and more open participation by all citizens in the electoral process.
It is not intended that such limitations should act to deprive or restrict any citizen of their rights guaranteed under the First and Fourteenth Amendments of the United States Constitution.
In addition, these provisions are intended to supplement the provisions contained in the Political Reform Act of 1974 (Title 9 of the California Government Code).
2.11.015 Receipt of ordinance.
Candidates shall be required to acknowledge in writing receipt of copy of the ordinance codified in this chapter; however, refusal or failure to sign or otherwise acknowledge receipt of the ordinance codified in this chapter shall not affect the applicability or enforceability of this chapter to said candidate.
2.11.020 Definitions.
Unless the term is specifically defined in this chapter or the contrary is stated or clearly appears from the context, the definitions set forth in the Political Reform Act of 1974 (Government Code Sections 81000 et seq.) shall govern the interpretation of this chapter.
Election period.
A. For each general municipal election, held in November of even numbered years to elect two full four-year-term Council Members, and one full two-year-term Mayor, the election period means the period beginning on January 1st or after the previous general municipal election for the affected office and ending on December 31st after the next following (and current) general municipal election for the affected office.
B. For each special municipal election, held to fill a vacancy in the office of the Mayor or Council Member, the election period means the period beginning on the day the vacancy in the office began and ending on the sixtieth day following the special municipal election, provided that for any candidate at the special election who had established, prior to the vacancy, a committee for the election to the affected office of Mayor or Council Member, the election period means a period beginning on January 1st after the previous general municipal election for the affected office.
2.11.030 Campaign contributions—Limitations.
A. No person shall make a contribution to any candidate or the controlled committee of such a candidate, and no candidate or the candidate's controlled committee shall accept from each such person a contribution or contributions totaling more than eight hundred dollars ($800.00) for any election period.
B. The candidate's own money or property used in the furtherance of the candidate's campaign shall not be subject to the contribution limits of this chapter.
2.11.040 Aggregation of contributions.
For the purpose of the contribution limitations in Section 2.11.030, contributions from persons shall be aggregated as follows:
A. If the same person or a majority of the same persons in fact directs and controls the decisions of two or more entities to make contributions to support or oppose a candidate or candidates for elective office, those affiliated entities shall be considered one person.
B. Business entities in a parent-subsidiary relationship and business entities with the same controlling (more than fifty percent) owner shall be considered one person, unless the business entities act completely independently in their decisions to make contributions to support or oppose candidates for elective office.
C. Nothing in this section shall be construed as to limit the right of individuals in joint tenancy of a savings or checking account from each making a contribution to a campaign in accordance with the limitations of this chapter.
2.11.050 Loans and unpaid debts to vendors.
A. Every loan to a candidate or committee shall be by written agreement and shall be filed with the candidate's or controlled committee's campaign statement on which the loan is first reported.
B. Loans shall not be subject to the contribution limitations of this chapter.
C. Failure to repay a loan within one year of the election date shall cause the loan to be considered a contribution and to the extent such contribution exceeds the contribution limitation established in Section 2.11.030 it shall be a violation of this chapter and subject to the enforcement provisions of chapter 1.16.
D. Debts owed by a candidate or committee to a vendor for goods or services rendered shall be considered campaign contributions for the purposes of this chapter if such debts are not repaid within one year following the election, unless the vendor has made a good faith effort to collect. A good faith effort shall consist of contracting with a collection agency for action, or the filing of a legal action to collect. To the extent such contribution exceeds the contribution limitation established in Section 2.11.030 it shall be a violation of this chapter, and subject to the enforcement provisions of chapter 1.16.