COUNCIL LATE AGENDA ITEMS
Council Meeting
February 8, 2022
City of Orange
Public Works Department
Memo-Hot File
To: Honorable Mayor and City Council
From:
Through: Tom Hatch, Interim City Manager
Date: February 8, 2022
Re: Agenda Item 3.23-Approval of temporary street closures for approved special events.
Resolution No. 11375
On the agenda for February 8, 2022 is the annual resolution approving temporary street closures for approved special events. There was an error on the report relative to the start time for the closure for the Orange International Street Fair. The start time for the closure should be 3:00 am Thursday September 1, " • 2022. The report indicated in error that the closure would start at 7:00 pm on Thursday September 1, 2022.
Staff requests that the Council make the above noted change to the resolution and approved action. 10 F
City of Orange
Community Development Department
Memo
To: Mayor Murphy and Members of the City Council
Thru: Thomas R. Hatch, Interim City Manager
From: Susan Galvan, Interim Community Development Director Anna Pehoushek, Assistant Community Development Director/R Date: February 7, 2022
Re: Housing Element Update
In response to feedback given during Council briefings on the Housing Element update, staff has assembled additional information for the Council's reference regarding inclusionary housing programs in Orange County, and certain proposed Policy Actions.
Additional information has also been prepared by the City's Housing Element consultant in anticipation of state review of the Council-adopted Housing Element.
Orange County Cities with Inclusionary Housing Programs One approach cities have taken to addressing the production of affordable housing units is establishing an inclusionary housing program. This type of program requires a certain percentage of units associated with a new housing development to be income-restricted to very-low, low-, or moderate-income households depending on the housing needs and memorandum. In short, project requirements vary. Applicable projects range from 2+ units to 50+ units. Most cities take a flexible approach to inclusionary housing whereby developers may not ultimately be responsible for the actual construction of the affordable units. Most programs provide options for incorporating units in the subject development project, creating units at an alternate site, payment of an in-lieu affordable housing fee, or dedication of land for affordable housing development by another party.
Policy Actions
Policy Action 2L: Candidate Sites Used in Previous Housing Elements Candidate Housing Sites are presented in Appendix B of the Housing Element update.
State law requires that non-vacant candidate sites that were identified in one of the past two Housing Elements but not developed with housing be provided with the ability to develop housing where at least 20% of the units are affordable to low- and very low- income households without discretionary review. Recent affordable multi-family housing projects in Orange have been reviewed by the Design Review Committee and Planning Commission due to design review and major site plan review application requirements.
State law now requires the City to review projects that include at least 20% of the units affordable to low- or very low-income households through a ministerial (staff level) review process. Policy Action 2L indicates that the City will establish objective design standards that would be applied along with established development standards for building height, setbacks, landscaping, parking, etc. With such new standards in place, affordable housing developers would still have the option to request a density bonus and/or concessions and waivers from development standards based on project affordability.
It should be noted that sites subject to this Policy Action are concentrated in the City's Urban Mixed Use zoning districts (West Katella Corridor, Uptown Orange, and Town and Country Road).
Policy Action 2M: Development of Housing for Extremely Low and Lower-Income Households
Policy Action 2M indicates that the City will develop a program that subsidizes City application processing fees for projects where 100% of the units are affordable to low- and very low-income households. This suggested Policy Action is not a state requirement, but rather a voluntary means of demonstrating the City's support of affordable housing development. In the case of recent affordable housing projects, the City has worked with non-profit developers to defer payment of fees to issuance of ertificate of occupancy. The proposed Policy Action would lead the City to develop subsidy program. The particulars of this program have yet to be defined, and the Policy Action indicates that fee subsidies could be as high as 100%. Should the Council affirm inclusion of this Policy Action in the updated Housing Element, staff would work with the Council on determining the appropriate level of subsidy based on specific project criteria. As an option, the Council could also support inclusion of this Policy Action with elimination of the reference to the "up to 100%" subsidy.
Review of Past Performance
Through its recent work on a number of Housing Elements in Southern California, the City's Housing Element consultant has learned that the State Department of Housing and Community Development (HCD) is requesting that more detailed information be included in the "Review of Past Performance" regarding the effectiveness of goals, 2 policies, and related actions in meeting the housing needs of special needs populations (seniors, persons with disabilities, large households, single-parent households, farm workers, un-housed, and extremely low-income households). Supplemental information has been prepared for incorporation into Appendix A of the Housing Element update prior to its submittal to HCD.
Attachments
Attachment 1. Orange County Cities with Inclusionary Housing Programs Attachment 2. Review of Past Performance Supplemental HCD Response 3 Attachment 1
Orange County Cities with Inclusionary Housing Ordinances City Program Overview
Brea For projects with 20+ units, 10% required to be affordable (low and mod) provided that this does not place a burden on developer or future 45 year affordability for owner-occupied units.
• • 55 year affordability for renter-occupied units.
Option exists for paying in-lieu fees to generate equivalent number of units.
Huntington Beach For projects including the creation of 3+ units, conversion of non- residential uses to dwelling units or conversion of residential rental development to residential ownership development, 10% of the units must be affordable (very low, low and moderate income units).
For new units, at least 40% of the units must be at least 2 bedroom.
Housing units have the option of being built on another site.
Depending on circumstances of the project, up to 20% of the units may be required to be affordable.
In-lieu fee is also an option under certain circumstances. 45 year affordability for ownership units.
: 55 year affordability for rental units.
Irvine For projects including the creation of 50+ units in certain planning areas.
Requires submittal of an Affordable Housing Plan describing unit mix, period of affordability, identification of any requested financial and/or processing incentives.
Units must be distributed to prevent a concentration of lower income households in any given neighborhood.
Applicable to newly constructed units and conversion of existing market rate units.
Options include:
• Payment of in-lieu fees
• Transfer control of units to a nonprofit housing agency 1 • Transfer of off-site credits for affordable units not provided on development site
• Provision of alternative housing
• Dedication of land for affordable housing
Laguna Beach For projects of 2+ units, 25% must be affordable.
Units may be provided either on- or off-site.
In-lieu fee may be paid for projects with 10 or fewer units.
Laguna Woods For projects of 5+ units, 15% must be affordable (very low and low rental units and low and moderate ownership units).
Units must be integrated into the overall development.
For solely for-sale development projects, an applicant may request payment of an in-lieu fee.
Lake Forest Residential developments are encouraged to incorporate a minimum 15% affordable units.
An Affordable Housing Implementation Plan is required to be submitted for any condominium conversion project.
San Clemente For projects of 6+ units, 4% must be affordable to very low income.
Units may be provided on- or off-site.
Options include payment of in-lieu fee or donation of land. 2 Attachment 2
Review of Past Performance Supplemental HCD Response
Program Evaluation (Orange 5th Cycle Evaluation)
The City of Orange has demonstrated a significant effort in working towards accomplishing many of the objectives set for the programs of the past cycle. During the fifth cycle, the City completed a number of key programs to support housing opportunity and made substantial progress towards many of its programs. The City's successful programs have been identified as continued for the sixth cycle, due to their success in the fifth cycle.
As a part of analyzing prior programs, the element must provide an explanation of the effectiveness of goals, policies, and related actions in meeting the housing needs of special needs populations. The table below provides an overview of the City's prior program accomplishments; achievements related to special needs populations are summarized below:
Seniors:
As shown in Section 2, approximately 12 percent of the Orange population is 65 and older. Senior Housing is permitted "by right" in all Residential and Mixed Use Zoning districts. In addition, OMC Chapter 17.15 provides for density bonuses and other incentives for Senior Housing. Senior housing is also permitted, subject to Conditional Use Permit approval within commercial zones. The Commercial Code includes development standards (Urban Mixed Use zoning standards) designed to encourage and facilitate infill senior housing development close to goods and services.
The following projects either received final building inspections or were entitled during the planning period. • 2016 - Code amendments adopted that allow senior housing in commercial districts 2017 - Final building inspections were completed for Encore Hewes Senior Apartments (12 age qualified multiple family rental units)
• 2018 - Final Building inspections were completed for Oakmont (98 assisted living units) and Prospect Senior Apartments (28 age-qualified multiple-family rental units)
• 2019 - Project entitlements were completed for Orange Senior Housing (74 age-qualified low-income multiple-family rental units), Orange Sky Villas (23 age-qualified multiple-family rental units), and Sunrise Senior (93-unit, 120 bed senior assisted living and memory care facility currently under construction). Additionally the City approved/is processing the ActivCare (complete) and Park Plaza Memory Care (approved in 2021; site preparation work underway) facilities. • 2021 - Project entitlements were completed for adaptive re-use of the Sisters of St. Joseph Mother House for 50 age-qualified low-income senior multifamily residential rental units.
Persons with Disabilities:
As shown in Section 2, approximately 8 percent of the Orange population have at least one physical or developmental disability. During the planning period, the Orange County Housing Authority (OCHA) assisted the following number of renter households within Orange through the Section 8 Housing Choice Voucher (Rental Assistance) Program:
• FY 2013-14 - 455 Total (132 families, 217 elderly, 106 disabled households.
FY 2014-15 - 597 Total (177 families, 206 elderly, 153 disabled households. • FY 2015-16 - 454 Total (123 families, 218 elderly, 112 disabled households.
FY 2016-17 - 436 Total (110 families, 222 elderly, 104 disabled households. • FY 2017-18 - 460 Total (116 families, 236 elderly, 108 disabled households. • FY 2018-19 - 439 renter households.
Additionally, OCHA also administered the rental assistance component of the Family Self-Sufficiency (FSS) Program, Family Unification Program (FUP), and Housing and Urban Development-Veterans Affairs Supportive Housing (HUD-VASH) Program. Each of these programs provides rental assistance for various at-risk groups with the intention of providing safe and sounds housing for all vulnerable members of the Orange population. The City annually pursued focused outreach efforts with the Regional Center of Orange County to identify the needs of persons with development disabilities and to promote opportunities and eliminate barriers for housing.
Large Households:
As shown in Section 2, approximately 14 percent of the total households in Orange are classified as large-family households with 5 or more persons. During the 5th Cycle, the City of Orange facilitated development of housing suitable for large families through the following projects, all of which have a component with three or more bedrooms. 2014 - The City constructed two housing units which may accommodate large families. • 2015 - The City finaled 9 new residential units, 5 of which may accommodate large families. Lemon Grove affordable housing project (82 affordable units) completed and occupied. Project includes floor plans oriented towards large families. • 2016 - The City finaled 5 residential units, three of which could accommodate large families. 2017 - 2019 - The City received final inspections on 1,825 residential units, most of which were multi-family and contain mostly studio, one-bedroom, and two-bedroom units. Some of these developments include three-bedroom units. • 2021 - The City entitled the Corp Yard affordable housing project (62 affordable units) including 44 3-bedroom units.
Farm Workers:
As previously discussed, farm workers are not a significant portion of the Orange community. Their needs are accommodated through housing programs and policies that assist lower-income households in general rather than specialized programs, such as Policy Action 5 (Large-families), Policy Action 18 (Section 8 Rental Assistance) which provided assistance through approximately 2,800 vouchers through 2019, and Policy Action 22 (Preservation of At-risk Units). The City preserved 530 existing affordable units across five separate developments.
Single-Parent Households:
As shown in Section 2, approximately 7 percent of households in Orange are single-parent households. The City of Orange provides a number of community programs and resources for children which may assist single-parent households. The City of Orange, in partnership with the Youth Centers of Orange, offers after-school enrichment for children Kindergarten to 8th Grade. This after-school program includes group activities, homework help, a nutritional program, and a special focus on Character Development for a nominal fee. All scheduled programs are in conjunction with the OUSD academic calendar. After-school recreation programs are offered throughout the community at El Camino Real Park, Grijalva Park, and Killefer Park. The Teen Action Committee (T.A.C.) also offers activities and community projects for teens entering the 7th grade through 15 years of age.
Additionally, the City of Orange provides financial assistance through Community Development Block Grants (CDBG) to support the Assistance League's Operation School Bell Program. The program provides clothing and school supplies to low-income school children in the Orange Unified School District (OUSD).
Un-Housed:
As shown in Section 2, the City of Orange's un-housed population totaled 341 and 5 percent of the County's total homeless population count during the 2019 Point in Time Count. Throughout the 5th cycle planning period, the City allocated CDBG funds to nonprofit agencies that provided supportive housing and services for the homeless or those at risk of becoming homeless. Additionally, the City allocated CDBG funds to nonprofit agencies that provided public services programs. Although not specifically designed to assist the homeless, these intervention programs often help to prevent homelessness. The City assisted the following number of people through various funding programs:
FY 2013-14 - Assisted over 3,800 people
FY 2014-15 - Assisted over 4,000 people
• FY 2015-16 - Assisted over 5,780 people
• FY 2016-17 - Assisted over 880 people
• FY 2017-18 - Assisted over 1,930 people
In 2016, building permits were ministerially approved for the "Citrus Family Shelter", a 56 bed emergency shelter for homeless families.
In 2017, final building inspection was received and the shelter is successfully in operation. City Council adoption of Ordinance 06-12 pursuant to SB 2 facilitated the approval of the shelter.
In 2018, the City worked with the shelter for operational needs and promoted the shelter via seeking and receiving an American Planning Association, Orange County Chapter Award. Additionally, the received recognition by the Orange County Business Council (OCDC) as a Leading Innovator in "Cutting Red Tape" for its partnership with HomeAid of Orange County for the development of the Orange Family Care Center.
In 2019, the City passed an ordinance amending the Orange Municipal Code to modify the Special Use Regulations for homeless shelters, reducing the distance between shelter separation requirements from 300 feet to 275 feet and increasing the maximum number of beds per facility from 100 to 150.
The City also participates in a number of countywide and regional efforts which provide resources to persons experiencing homelessness, including the North County Service Planning Area (SPA), the Orange County Continuum of Care, and BeWell OC.
Extremely low-income households:
As shown in Section 2, approximately 5,490 households qualify as extremely-low income in Orange. This is approximately 12% of all households in Orange. The City took action to assist extremely low-income households through multiple policy actions, including Policy Action 18 (Section 8 Rental Assistance) which provided assistance through approximately 2,800 vouchers through 2019, and Policy Action 22 (Preservation of At-risk Units). The City preserved 530 existing affordable units across five separate developments.
Single-room occupancy housing can be an effective option for extremely-low income households to attain housing. The City began efforts in 2014 to draft and adopt an Ordinance amendment concentrated on identifying opportunities for supportive housing and the homeless crisis in Orange County. The city anticipates completion of ordinance amendment during the 6th Cycle planning period.