Agenda packet — Patterson City Council, May 19, 2026 (part 4 of 6)

2 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s basic financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Walnut Creek, California
February 20, 2026
Packet Pg. 1025
2121 North California Blvd., Suite 290
Walnut Creek, California 94596

REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM,

ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE

UNIFORM GUIDANCE, AND ON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of Patterson
Patterson, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited City of Patterson, California’s (the “City”) compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2025. The City’s major federal programs are identified in the summary of Auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2025.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

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To the Honorable Mayor and Members of City Council
of the City of Patterson
Patterson, California

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4 Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with auditing standards generally accepted in the United States of America, Government Auditing Standards, and the Uniform Guidance, we  exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

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To the Honorable Mayor and Members of City Council
of the City of Patterson
Patterson, California

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5 Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance.

Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated February 20, 2026, which contained unmodified opinions on those financial statements. Our audit was performed for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements.

Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Walnut Creek, California
February 20, 2026
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City of Patterson
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2025
See accompanying Notes to the Schedule of Expenditures of Federal Awards. 7 Assistance Grant
Federal Grantor/Passed through Grantor Listing Identification Federal Program Title Number Number Expenditures
U.S. Department of Housing and Urban Development:

Community Development Block Grant - Entitlement Cluster:

Passed Through Stanilaus County:

Community Development Block Grant 14.218 N/A 25,394 $
Total Community Development Block Grant - Entitlement Cluster 25,394 Total U.S. Department of Housing and Urban Development 25,394 U.S. Department of Transportation:

Highway Planning and Construction Program:

Passed Through State of California Department of Transportation:

Rogers Road DMC Bridge 20.205 BRLS-5244 (032) 148,180
Ward Ave. Overlay Phase II 20.205 STPL-5244 (043) 309,700 Total Highway Planning and Construction Program 457,880 Total U.S. Department of Transportation 457,880
U.S. Department of Treasury:

Direct Program:

Coronavirus State and Local Fiscal Recovery Funds 21.027 NEU - CA0198 3,180,657 Total Coronavirus State and Local Fiscal Recovery Funds 3,180,657 Total U.S. Department of Treasury 3,180,657
Total Expenditures of Federal Awards $ 3,663,931
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City of Patterson
Notes to the Schedule of Expenditures of Federal Awards For the Year Ended June 30, 2025
9 Note 1 – Reporting Entity
The financial reporting entity consists of the primary government, City of Patterson (the “City”), organizations for which the primary government is financially accountable, and other organizations for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete.

Note 2 – Basis of Accounting
The various grant programs have been recorded within the general fund and special revenue funds of the City. The City utilizes the modified accrual method of accounting for the general fund and special revenue funds. The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the schedule may differ from amounts presented in, or used in, the preparation of the City’s basic financial statements.

Note 3 – Schedule of Expenditures of Federal Awards
The accompanying Schedule presents the activity of all federal financial assistance programs of the City Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California is included in the Schedule. The Schedule was prepared from only the accounts of various grant programs and, therefore, does not present the financial position, change in fund balance, or results of operations of the City.

Note 4 – Subrecipients
During the fiscal year ended June 30, 2025, there were no amounts provided to subrecipients.

Note 5 – Indirect Cost Rate
The City has not elected to use the de minimis indirect rate as allowed under the Uniform Guidance (10 percent of modified total direct costs for awards issued prior to October 1, 2024 and 15 percent for awards issued or amended on or after October 1, 2024).

Note 6 – Contingencies
Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.

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City of Patterson
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2025
10 Section I – Summary of Auditor’s Results
Financial Statements
Type of report the auditors issued on whether the financial statements audited were prepared in accordance with GAAP: Unmodified Internal control over financial reporting:
 Material weakness(es) identified? No
 Significant deficiency(ies) identified? None Reported Noncompliance material to financial statements noted? No Federal Awards
Internal control over major programs:
 Material weakness(es) identified? No
 Significant deficiency(ies) identified? None Reported Type of Auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? No
Identification of major programs:

Assistance Listing Federal
Number Name of Federal Program or Cluster Expenditures

21.027 Coronavirus State and Local Fiscal Recovery Funds 3,180,657 $ Total major program expenditures $ 3,180,657
Total expenditures of federal awards $ 3,663,931
Percent of total federal award expenditures 86.81%
Dollar threshold used to distinguish between type A and type B programs $750,000 Auditee qualified as low-risk auditee in accordance with 2 CFR 200.520? Yes Packet Pg. 1033
City of Patterson
Schedule of Findings and Questioned Costs (Continued)
For the Year Ended June 30, 2025
11 Section II – Financial Statements Findings
A. Current Year Findings – Financial Statement Audit
No current year financial statement findings were noted.

B. Prior Year Findings – Financial Statement Audit
No prior year financial statement findings were noted.

Section III – Federal Award Findings
A. Current Year Findings and Questioned Costs – Major Federal Award Program Audit No findings or questioned costs were noted on the City’s major federal programs for the year ended June 30, 2025.

B. Prior Year Findings and Questioned Costs – Major Federal Award Program Audit No findings or questioned costs were noted on the City’s major federal programs for the year ended June 30, 2024.

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City of Patterson
Transportation Development Act Fund
Patterson, California
Independent Auditor’s Reports
and Financial Statements
For the Year Ended June 30, 2025
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City of Patterson
Transportation Development Act Fund
For the Year Ended June 30, 2025
Table of Contents
Page
Independent Auditor’s Report on Financial Statements .......................................................................................... 1 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards, and With the Statutes, Rules and Regulations of the California Transportation Development Act ..................................................... 5 Financial Statements:

Balance Sheet ........................................................................................................................................................... 7 Statement of Revenues, Expenditures, and Change in Fund Balance ...................................................................... 8 Notes to the Financial Statements ............................................................................................................................. 13 Packet Pg. 1037
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2121 North California Blvd., Suite 290
Walnut Creek, California 94596
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Patterson
Patterson, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Transportation Development Act Fund (the “TDA Fund”) of the City of Patterson, California (the “City”) which comprise the balance sheet as of June 30, 2025 and the related statement of revenues, expenditures, and change in fund balance for the year then ended, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of TDA Fund as of June 30, 2025, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the TDA Fund of the City and do not purport to, and do not present fairly the financial position of the City as of June 30, 2025, and change in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Packet Pg. 1039
To the Honorable Mayor and Members of the City Council
of the City of Patterson
Patterson, California

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2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we
 exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the TDA Fund’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Management has omitted the Management’s Discussion and Analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the financial statements. Such missing information, although not a part of the financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. Our opinion on the financial statements is not affected by this missing information.

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To the Honorable Mayor and Members of the City Council
of the City of Patterson
Patterson, California

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3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards and the Transportation Development Act, we have also issued our report dated February 20, 2026, on our consideration of the TDA Fund’s internal control over financial reporting and on our tests of its compliance with the statutes, rules, and regulations of the California Transportation Development Act. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the TDA Fund’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the TDA Fund’s internal control over financial reporting and compliance.

Walnut Creek, California
February 20, 2026
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2121 North California Blvd., Suite 290
Walnut Creek, California 94596

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS, AND WITH THE STATUTES, RULES

AND REGULATIONS OF THE CALIFORNIA TRANSPORTATION DEVELOPMENT ACT Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Patterson
Patterson, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Transportation Development Act Fund (the “TDA Fund”) of the City of Patterson, California (the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the TDA Fund’s basic financial statements and have issued our report thereon dated February 20, 2026.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over TDA Fund financial reporting (“internal control”) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified.

Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

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To the Honorable Mayor and Members of the City Council
of the City of Patterson
Patterson, California

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6 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s Transportation Development Act Fund financial statements are free from material misstatement, we performed tests of its compliance with the applicable statutes, rules and regulations of the Transportation Development Act and the allocation instructions and resolutions of the Stanislaus Council of Governments as required by Sections 6666 of Title 21, Division 3, Chapter 2, Article 5.5 of the California Code of Regulations, noncompliance with which could have a direct and material effect on the determination of financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards or the Transportation Development Act.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Walnut Creek, California
February 20, 2026
Packet Pg. 1044
LTF
Transportation
ASSETS
Cash and investments $ 443,533
Interest receivable 2,304
Total assets $ 445,837

LIABILITIES AND FUND BALANCE
LIABILITIES:

Unearned revenue $ 297,142
Total liabilities 297,142
FUND BALANCE:

Unrestricted 148,695
Total fund balance 148,695
Total liabilities and fund balance $ 445,837
City of Patterson
Transportation Development Act Fund
Balance Sheet
June 30, 2025
See accompanying Notes to the Financial Statements.
7 Packet Pg. 1045
LTF
Transportation
REVENUES:

Streets - SB325 $ 11,353
Interest 11,103
Total revenues 22,456
REVENUES OVER (UNDER) EXPENDITURES 22,456
OTHER FINANCING SOURCES (USES):

Transfers in 192,312
Transfers out (23,675)
Total other financing sources (uses) 168,637
Net change in fund balance 191,093
FUND BALANCE (DEFICIT):

Beginning of year (42,398)
End of year $ 148,695
City of Patterson
Transportation Development Act Fund
Statement of Revenues, Expenditures, and Change in Fund Balance For the Year Ended June 30, 2025
See accompanying Notes to the Financial Statements.
8 Packet Pg. 1046
9 NOTES TO THE FINANCIAL STATEMENTS
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City of Patterson
Transportation Development Act Fund
Index to the Notes to the Financial Statements
For the Year Ended June 30, 2025
11 Page
Note 1 – Summary of Significant Accounting Policies ............................................................................................. 13 A. The Reporting Entity .................................................................................................................................. 13 B. Fund Accounting......................................................................................................................................... 13 C. Basis of Accounting and Measurement Focus ............................................................................................ 13 D. Cash and Investments ................................................................................................................................. 13 E. Fund Balance .............................................................................................................................................. 13 F. Use of Estimates ......................................................................................................................................... 14 Note 2 – Cash and Investments ................................................................................................................................... 14 Note 3 – Unearned Revenue ........................................................................................................................................ 14 Note 4 – Transportation Development Act Compliance Requirements .................................................................. 14 Note 5 – Restrictions ..................................................................................................................................................... 14 Packet Pg. 1049
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City of Patterson
Transportation Development Act Fund
Notes to the Financial Statements
For the Year Ended June 30, 2025
13 Note 1 – Summary of Significant Accounting Policies
The accompanying financial statements are prepared from the accounts and financial transactions of the Transportation Development Act Fund (“TDA Fund”) of the City of Patterson, California (the “City”) and have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies applicable to the TDA Fund are described below.

A. The Reporting Entity
The City operates under a Council-Manager form of government and provides the following services as authorized: public safety (police, fire and civil defense), highway and streets, sanitation, health and social services, culture-recreation, education, public improvements, planning and zoning, and general administrative services. The City also provides water, garbage, and sewer service. It is governed by an elected five member council.

The financial statements of the TDA Fund are intended to present the financial position and changes in financial position of only those transactions attributable to the TDA Fund administered and disbursed by the City.

B. Fund Accounting
In accordance with Section 99400 (a) and (c) of the Transportation Development Act, monies are reported in the TDA Fund. The monies of the TDA Fund are the City’s share of the Transportation Development Act allocations that are legally restricted for specific purposes. The operation of this fund is accounted for as a “Special Revenue Fund” in a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance, revenues, and expenditures.

C. Basis of Accounting and Measurement Focus
The TDA Fund’s financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances. This fund is accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. The statement of revenues, expenditures and change in fund balance presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in fund balance. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. The City defines available to be within 60 days.

D. Cash and Investments
The Transportation Development Act Fund’s cash is pooled with the City’s internal investment pool. Cash equivalents are reported as cash and are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition.

E. Fund Balance
The City reports fund balance for governmental funds in specific classifications (nonspendable, restricted, committed, assigned, and unassigned), which creates a hierarchy primarily based on the extent to which the City is bound to the constraints on the specific purpose for which funds can be spent. The TDA fund only receives restricted revenues, therefore any remaining fund balance is restricted by nature of the revenue received.

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City of Patterson
Transportation Development Act Fund
Notes to the Financial Statements (Continued)
For the Year Ended June 30, 2025
14 Note 1 – Summary of Significant Accounting Policies (Continued) F. Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosure. Accordingly, actual results could differ from those estimates.

Note 2 – Cash and Investments
The TDA Fund’s share of the City’s cash and investments at June 30, 2025 was $448,797.

Cash is deposited in the City’s internal investment pool, which is reported at fair value. The TDA Fund do not own specifically identifiable securities in the City’s pool. Interest income is allocated based on average cash balances.

Investment policies and associates risk factors applicable to the TDA Fund are those of the City and are included in the City’s basic financial statements.

Note 3 – Unearned Revenue
As of June 30, 2025, the balance of $297,142 is unearned revenue and consists of unspent funds of $297,142 of FY2016 Congestion Mitigation and Air Quality (CMAQ) Improvement funding.

Note 4 – Transportation Development Act Compliance Requirements Allocations and disbursements of the State Transit Assistance Fund and the Local Transportation Fund are made by the Stanislaus Council of Governments. Such allocations and disbursements are in accordance with written allocation instructions conveyed by the Stanislaus Council of Governments, the Transportation Development Act, and Section 6753 of the California Administrative Code.

Pursuant to Section 6750 (e) of the California Administrative Code, the Local Transportation Fund shall not be commingled with the State Transit Assistance Fund, or with any other revenues or funds of the regional entity, county, or operator. The Local Transportation Fund is maintained as a separate fund of the City.

Note 5 – Restrictions
Funds received pursuant to TDA Article 3 may only be used for pedestrian and bicycle projects.

Funds received pursuant to TDA Article 8e may only be used to pay for capital expenses incurred while contracting for transit services with profit making or non-profit companies for public transportation services as described in TDA Article 8e.

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City of Patterson
Abandoned Vehicle Abatement Program
Patterson, California
Independent Auditor’s Reports
and Financial Statements
For the Year Ended June 30, 2025
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City of Patterson
Abandoned Vehicle Abatement Program
For the Year Ended June 30, 2025
Table of Contents
Page
Independent Auditor’s Report on Financial Statements .......................................................................................... 1 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards and the Abandoned Vehicle Abatement Program Handbook ........................................................................... 3 Financial Statements:

Statement of Revenues, Expenditures, and Changes in Fund Balances ................................................................... 7 Notes to the Financial Statement ............................................................................................................................... 11 Packet Pg. 1054
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2121 North California Blvd., Suite 290
Walnut Creek, California 94596
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Patterson
Patterson, California
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying Statement of Revenues, Expenditures and Changes in Fund Balance (the “Statement”) of the Abandoned Vehicle Abatement Program (the “Program”) of the City of Patterson, California (the “City”) as of and for the year ended June 30, 2025, and the related notes to the financial statement, as listed in the table of contents.

In our opinion, the Statement referred to above presents fairly, in all material respects, the revenues, expenditures and changes in fund balance of the program for the year ended June 30, 2025 in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and certain provisions of the Abandoned Vehicle Abatement Program Handbook (AVA Program Handbook), issued by the California Highway Patrol. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Program, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of Matter
As described in Note 1, the Statement is intended to present only the results of operations of the Program of the City.

It does not purport to, and does not, present fairly the financial position of the City as of June 30, 2025, and change in fund balance for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

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To the Honorable Mayor and Members of the City Council
of the City of Patterson
Patterson, California

Page 2 ends

In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we
 exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Program’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Other Reporting Required by Government Auditing Standards and the AVA Program Handbook In accordance with Government Auditing Standards and the AVA Program Handbook, we have also issued our report dated February 20, 2026, on our consideration of the Program’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.

The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and the AVA Program Handbook in considering the Program’s internal control over financial reporting and compliance.

Walnut Creek, California
February 20, 2026
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2121 North California Blvd., Suite 290
Walnut Creek, California 94596

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON

COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS AND

THE ABANDONED VEHICLE ABATEMENT PROGRAM HANDBOOK
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Patterson
Patterson, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, and certain provisions of the Abandoned Vehicle Abatement Program Handbook (AVA Program Handbook), the financial statement of the Abandoned Vehicle Abatement Program (the “Program”) of the City of Patterson, California (the “City”), for the year ended June 30 2025, and the related notes to the financial statement, and have issued our report thereon dated February 20, 2026.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statement, we considered the Program’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statement, but not for the purpose of expressing an opinion on the effectiveness of the Program’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Program’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

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To the Honorable Mayor and Members of the City Council
of the City of Patterson
Patterson, California

Page 2 ends

4 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Program’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards or the AVA Program Handbook.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal controls and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Program’s internal controls or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards and the AVA Program Handbook in considering the Program’s internal controls and compliance. Accordingly, this communication is not suitable for any other purpose.

Walnut Creek, California
February 20, 2026
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FINANCIAL STATEMENT
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6 Packet Pg. 1061
REVENUES:

Registration fees $ 29,925
Total revenues 29,925
EXPENDITURES:

Personnel 17,963
Services and supplies 11,933
Total expenditures 29,896
Net change in fund balance 29
FUND BALANCE:

Beginning of year 30,657
End of year $ 30,686
City of Patterson
Abandoned Vehicle Abatement Program
Statement of Revenues, Expenditures, and Changes in Fund Balances For the Year Ended June 30, 2025
See accompanying Notes to the Financial Statement.
7 Packet Pg. 1062
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8 Packet Pg. 1063
9 NOTES TO THE FINANCIAL STATEMENT
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City of Patterson
Abandoned Vehicle Abatement Program
Notes to the Financial Statement
For the Year Ended June 30, 2025
11 Note 1 – Summary of Significant Accounting Policies
The Statement of Revenues, Expenditures and Change in Fund Balance (the “Statement”) of the Abandoned Vehicle Abatement Program (the “Program”) of the City of Patterson, California (the “City), have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the Program’s accounting policies are described below.

A. The Reporting Entity
The Abandoned Vehicle Abatement Program is a statewide program administered by the California Highway Patrol (CHP). The City administers and operates the local vehicle abatement program pursuant to Section 22710 of the Vehicle Code, Patterson Municipal City Code Section 10.24.010 et seq., and the Stanislaus Council of Governments (StanCOG) Abandoned Vehicle Program and Plan. Section 9250.7 of the Vehicle code establishes the funding source for the abatement of abandoned vehicles by a county-based Service Authority (the “Authority”), pursuant to the provisions of Section 22710 of the Vehicle Code. The Vehicle Code imposes a service fee of one dollar ($1) on vehicles registered to an owner with an address in the county that establishes the Authority. This fee is paid to the Department of Motor Vehicles (DMV) at the time of registration or renewal of registration. The DMV, after deducting its administrative costs, at least quarterly transmits the net amount collected to the State Controller’s Office (SCO) for deposit in the Abandoned Vehicle Trust Fund. All money in the fund is continuously appropriated to the SCO for allocation to an Authority that has an approved Program, and for payment of the administrative costs of the SCO. StanCOG, the Authority, distributes Program funds to participating entities based on the allocation determined in the Vehicle Abatement Services Agreement.

The Statement is intended to present the results of operations, and those program revenues and expenditures of the Program that are accounted for within the General Fund of the City. They are not intended to present the financial position or results of operations of the City as a whole.

B. Basis of Accounting and Measurement Focus
Basis of accounting refers to when revenues and expenditures/expenses are recognized in the accounts and reported in the financial statements.

Governmental funds are accounted for using the modified accrual basis of accounting and "current financial resources" measurement focus. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Revenues are recognized in the accounting period in which they become measurable and available. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The Program’s accrual period is generally 60 days after fiscal year end. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred.

C. Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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FY 2024-25 Financial Audits
May 19, 2026
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FY2024-25 Financial Audits
Tonight we will be receiving a presentation going
over the FY2024-25 Financial Statement Audits.
• City’s Annual Comprehensive Financial Report
• Patterson Public Financing Authority’s Financial Statements • West Patterson Public Financing Authority’s Financial Statements • These items are informational only, no Council action is required The presentation will be given by Andrew Roth, the
engagement partner from The Pun Group, LLP.

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CITY OF PATTERSON
Presentation to the City Council
For the Fiscal Year Ended June 30, 2025
May 19, 2026
Packet Pg. 1070
4 CONTENTS
• Scope of Work
• Required Communications (AU-C 260)
• Audit Responsibilities
• Approach to the Audit
• Overview of Financial Statements
• Financial Indicators and Key Pension/OPEB Information • Audit Results – City
• Audit Results – PPFA
• Audit Results - WPFA
• Thank You!
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5 Scope of Work
Packet Pg. 1072
6 Scope Of Work
• Financial Audit
• City of Patterson’s Annual Comprehensive Financial Report • Patterson Public Financing Authority Financial Statements • West Patterson Public Financing Authority Financial Statements • Single Audit (Uniform Guidance) • Compliance Examination Engagement Reports • Transportation Development Act Compliance
• Abandoned Vehicle Abatement Program Compliance
• Agreed-Upon Procedures Engagement Report
• GANN Limit – FY25/26
• Other Non-Audit Services
• Assistance in Preparing Financial Statements
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7 Required Communications (AU-C 260)
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8 Required Communications (AU-C 260)
• Significant Accounting Policies
• The City disclosed the summary of significant accounting policies in Note 1 to the financial statements.
• The City implemented GASB Statement No. 101, Compensated Absences • Significant Estimates
• Fair Value on Investments
• Depreciation on Capital Assets
• Compensated Absences
• Net Pension Liability
• Net OPEB Liability
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9 Required Communications (AU-C 260)
• Sensitive Disclosures
• Note 1 – Summary of Significant Accounting Policies
• Note 3 – Leases Receivable
• Note 13 – Pension Plans
• Note 14 – Other Postemployment Benefits
• Note 16 – Other Required Disclosures
• Note 19 – Restatements of Beginning Balances
• Note 20 – Commitments and Contingencies
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10 Required Communications (AU-C 260)
• Misstatements
• There were no corrected or uncorrected misstatements reported. • Consultation with Other Accountants • Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and other matters. • Significant Difficulties • We encountered no significant difficulties in dealing with management. • Disagreement with Management • We did not have any disagreement with management in terms of accounting treatments nor audit procedures performed.

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11 Audit Responsibilities
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12 Management Auditors
Responsible for preparation of the financial Perform the audit statements
Ensure the audit is in conformity with Auditing
Standards Generally Accepted in the United States
of America and standards applicable to Financial
Audits contained in Government Auditing Standards
Present the financial statements in accordance with
accounting principles generally accepted in the
United States of America
Communicate with “Those Charged with
Governance”
Adopt sound accounting policies
Assess audit risk of internal control over financial
reporting and compliance
Establish and maintain internal controls over
financial reporting and compliance
Determine fairness presentation of the financial
statements
Provide evidence supporting the amounts and
disclosures in the financial statements
Prevent and detect fraud Render opinions
Audit Responsibilities
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13 Approach to the Audit
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14 The Pun Group’s Approach to the Audit
• Phase I – Detailed Planning
• Phase II – Risk Based Review of Internal
Controls Over Systems and Compliance
(Interim) • Phase III – Validation and Testing of
Account Balances (Year-End) • Phase IV – Review Financial Statements and Issue Audit Opinions
Initiation
&
Planning
Meeting
Risk
Assessment,
Controls &
Review Entity
/ Environment
Assess,
Analyze,
and
Transaction
Testing
Reporting
& Project
Closure
Packet Pg. 1081
15 OVERVIEW OF THE FINANCIAL

STATEMENTS
Packet Pg. 1082
16 2025 2024 Change
Assets $ 202,025,263 221,797,583 $ 19,772,320 $
Deferred Outflows of Resources 6,427,990 6,222,046 (205,944) Liabilities 98,145,591 98,335,088 189,497 Deferred Inflows of Resources 5,164,282 4,516,384 (647,898) Net Position:

Net investments in capital assets 71,809,745 67,129,360 4,680,385 Restricted 38,458,402 28,261,493 10,196,909 Unrestricted 14,900,010 9,752,527 5,147,483 Total Net Position $ 105,143,380 125,168,157 $ 20,024,777 $ Net Position @ June 30
(Governmental Activities)
Packet Pg. 1083
17 2025 2024 Total
Program Revenues
Charges for services 11,305,383 $ 10,934,845 $ 370,538 $ Operating grants and contributions 8,635,246 5,561,697 3,073,549 Capital grants and contributions 8,926,451 4,449,223 4,477,228 Total program revenues 20,945,765 28,867,080 7,921,315
Expenses $ 38,757,581 40,386,308 $ 1,628,727 $
Net Cost of Services (17,811,816) (11,519,228) 6,292,588 General Revenues 31,424,637 31,079,935 344,702 Transfers 1,125,724 2,723,338 (1,597,614) Change in Net Position $ 15,991,457 21,031,133 $ 5,039,676 $ Change in Net Position
(Governmental Activities)
Packet Pg. 1084
18 2025 2024 Change
Assets $ 80,321,185 89,617,543 $ 9,296,358 $
Deferred Outflows of Resources 2,914,011 2,709,907 (204,104) Liabilities 32,267,059 34,322,792 2,055,733 Deferred Inflows of Resources 2,955,174 2,654,504 (300,670) Net Position:

Net investments in capital assets 46,633,775 48,241,694 (1,607,919) Restricted 7,817,964 3,219,807 4,598,157 Unrestricted 898,415 (3,448,538) 4,346,953 Total Net Position $ 48,012,963 55,350,154 $ 7,337,191 $ Net Position @ June 30
(Business-Type Activities)
Packet Pg. 1085
19 2025 2024 Total
Program Revenues
Charges for services 20,573,731 $ 18,570,675 $ 2,003,056 $ Capital grants and contributions 4,267,115 975,414 3,291,701 Total program revenues 19,546,089 24,840,846 5,294,757 Expenses $ 18,278,267 19,269,697 $ 991,430 $
Net Cost of Services 1,267,822 5,571,149 4,303,327 General Revenues 3,382,340 993,232 2,389,108 Transfers (1,125,724) (2,723,338) 1,597,614
Change in Net Position $ (462,284) 7,827,765 $ 8,290,049 $ Change in Net Position
(Business-Type Activities)
Packet Pg. 1086
20 2025 2024 Change
Assets $ 34,822,976 36,202,137 $ 1,379,161 $
Liabilities $ 10,346,209 12,200,619 $ 1,854,410 $
Deferred Inflows of Resources $ 210,074 871,988 $ 661,914 $ Fund Balance
Nonspendable 300,684 249,161 51,523 Restricted 737,315 624,198 113,117 Committed 12,113,995 10,759,106 1,354,889 Assigned 3,377,057 7,449,656 (4,072,599) Unassigned 6,600,479 5,184,572 1,415,907 Total Fund Balance 24,266,693 23,129,530 (1,137,163) Total Liabilities, Deferred Inflows of Resources, and Fund Balance $ 34,822,976 36,202,137 $ 1,379,161 $ General Fund – Fund Balance @ June 30
Packet Pg. 1087
21 2025 2024 Change
Revenues $ 29,762,783 32,634,548 $ 2,871,765 $
Expenditures (30,352,721) (30,363,265) (10,544) Revenues over Expenditures (589,938) 2,271,283 2,861,221 Other Financing Sources and Uses 6,693,468 (3,408,446) (10,101,914) Change in Fund Balance $ 6,103,530 (1,137,163) $ (7,240,693) $ General Fund – Change in Fund Balance
Packet Pg. 1088
22 Financial Indicators and
Key Pension/OPEB Information
Packet Pg. 1089
23 2025 2024
Unassigned Fund Balance 6,600,479 $ 5,184,572 $
Committed for Contingencies 12,113,995 10,759,106 Available Fund Balance 15,943,678 18,714,474 Annual Expenditures 30,352,721 30,363,265
Ratio 61.64% 52.53%
Available Fund Balance to Annual Expenditures
(General Fund)
Packet Pg. 1090
24 Miscellaneous Safety
Plan Plan Total
Net Pension Liabilities/(Assets) @ 5.90% 15,497,106 $ 6,947,954 $ 22,445,060 $ Net Pension Liabilities/(Assets) @ 6.90% 8,748,769 $ 4,297,667 $ 13,046,436 $ Net Pension Liabilities/(Assets) @ 7.90% 3,193,894 $ 2,130,104 $ 5,323,998 $ Plan's Proportionate Share of the
Fiduciary Net Position as a Percentage
of the Total Pension Liability 82.51% 77.85%
Prior year 79.26% 74.78%
Net Pension Liability Sensitivity Analysis
Packet Pg. 1091
25 OPEB
Net OPEB Liabilities @ 4.50% 10,685,975 $
Net OPEB Liabilities @ 5.50% 9,435,351 $
Net OPEB Liabilities @ 6.50% 8,367,845 $
Fiduciary Net Position as a Percentage
of the Total OPEB Liability 13.12%
Net OPEB Liability Sensitivity Analysis
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26 Audit Results - City
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27 Audit Results – City Audit
• Unmodified Opinions – By Opinion Unit
• Financial Statements are fairly presented in all material respects • In conformity with GAAP
• Significant accounting policies have been consistently applied • Estimates are reasonable
• Disclosures are properly reflected in the financial statements • Transportation Development Act Report – In Compliance • Abandoned Vehicle Abatement Program Report – In Compliance • Single Audit – Unmodified Opinions are issued to all Major Program(s) • The City complied, in all material respect, with the types of compliance requirements that could have a direct and material effect
• GANN Limit AUP Report (FY25/26) – Procedures performed without exception Packet Pg. 1094
28 Audit Results – City Audit
• Other Results
• No disagreement with Management
• No material weaknesses and/or significant deficiencies were identified in internal control over financial reporting
• No accounting issues
• No inappropriate activities were noted
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29 Audit Results – Patterson Public Financing
Authority
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30 Audit Results – PPFA Audit
• Opinion
• Unmodified Opinion
• Financial Statements are fairly presented in all material respect • Accounting policies have been consistently applied
• Estimates are reasonable
• Disclosures are properly reflected in the financial statements • Other Results
• No disagreement with Management
• No material weaknesses and/or significant deficiencies were identified in internal control over financial reporting
• No accounting issues
• No inappropriate activities were noted
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31 Audit Results – West Patterson Financing
Authority
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32 Audit Results – WPFA Audit
• Opinion
• Unmodified Opinion
• Financial Statements are fairly presented in all material respect • Accounting policies have been consistently applied
• Estimates are reasonable
• Disclosures are properly reflected in the financial statements • Other Results
• No disagreement with Management
• No material weaknesses and/or significant deficiencies were identified in internal control over financial reporting
• No accounting issues
• No inappropriate activities were noted
Packet Pg. 1099

HQ - ORANGE COUNTY
200 E. Sandpointe Avenue
Suite 600
Santa Ana, CA 92707

SAN DIEGO
4365 Executive Drive
Suite 710
San Diego, CA 92121

BAY AREA
2121 North California Blvd.

Suite 290
Walnut Creek, CA 94596

LAS VEGAS
1050 Indigo Drive
Suite 110
Las Vegas, NV 89145

PHOENIX
4742 North 24th Street
Suite 300
Phoenix, AZ 85016
Engagement Partner:

Andrew Roth, CPA
Direct: 858-242-5102
[email protected]
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WEST PATTERSON

FINANCING AUTHORITY

AGENDA REPORT
TO: Chair Clauzel and Members of the West Patterson Financing Authority FROM: Fernando Ulloa, Executive Director
BY: Kevin Williams, Finance Director
MEETING DATE: May 19, 2026
ITEM NO: 7.2
SUBJECT: Accept the West Patterson Financing Authority’s 2024-25 Financial Audit Report.

RECOMMENDATION
Motion to Accept the West Patterson Financing Authority’s 2024-25 Financial Audit Report.

BACKGROUND
The West Patterson Financing Authority publishes financial statements presented in conformance with Generally Accepted Accounting Principles (GAAP). The financial statements were audited by the independent public accounting firm of The Pun Group, LLP, whose unmodified opinion is included within the financial section of the report. The unmodified opinion indicates that the financial statements present fairly the financial position of the West Patterson Financing Authority as of June 30, 2025, and the results of operations, in accordance with generally accepted accounting principles. As part of the audit, The Pun Group, LLP also reviewed and performed tests of the Authority’s internal accounting control procedures to determine if there are any material weaknesses or instances of non-compliance. Based on the audit, there is no instance of non-compliance.

The West Patterson Financing Authority’s 2024-25 financial report is available on the City of Patterson’s website and is attached to this staff report.

Representative of The Pun Group, LLP will be present to discuss the audit and answer questions.

ANALYSIS
The Government-wide Net position in the Authority’s totaled a deficit of $65 million as of June 30, 2025, which decreased $2 million from the ending balance in the prior fiscal year.

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The governmental fund balance in the Authority’s totaled $25.6 million as of June 30, 2025, which was $4.2 million less than the ending balance in the prior fiscal year.

The difference between Government-wide Net position and governmental fund balance are the long-term liabilities that are not due and payable in the current period and interest payable on longterm debt does not require current financial resources and therefore are not reported in the governmental funds.

FISCAL IMPACT
Acceptance of this report does not affect the Authority’s budget or its financial condition. The report merely reflects an audit of the Authority’s financial records at June 30, 2025.

ATTACHMENT

1. West Patterson Financing Authority’s 2024-25 Financial Audit Report Packet Pg. 1102
West Patterson
Financing Authority
Patterson, California
Basic Financial Statements
and Independent Auditor’s Reports
For the Year Ended June 30, 2025
Packet Pg. 1103
West Patterson Financing Authority
Basic Financial Statements
For the Year Ended June 30, 2025
Table of Contents
Page

FINANCIAL SECTION
Independent Auditor’s Report on Financial Statements ......................................................................................... 1 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ........................................................................ 5 Basic Financial Statements:

Government-Wide Financial Statements:

Statement of Net Position ............................................................................................................................... 11 Statement of Activities ................................................................................................................................... 12 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ................................................................................................................................................. 17 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ................................................................................ 18 Statement of Revenues, Expenditures, and Changes in Fund Balance ........................................................... 19 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ............................................................................................................................. 20 Notes to the Basic Financial Statements .................................................................................................................. 25 Required Supplementary Information (Unaudited):

Budgetary Information ................................................................................................................................... 41 Budgetary Comparison Schedules:

CFD 2001-1 Special Tax Bonds .............................................................................................................. 42 CFD 2005-1 Special Tax Bonds .............................................................................................................. 43 CFD 2015-1 Special Tax Bonds .............................................................................................................. 44 CFD 2018-1 Special Tax Bonds .............................................................................................................. 45 CFD 2022-2 Special Tax Bonds .............................................................................................................. 46 Packet Pg. 1104
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2121 North California Blvd., Suite 290
Walnut Creek, California 94596
INDEPENDENT AUDITOR’S REPORT
To the Board of Directors
of the West Patterson Financing Authority
Patterson, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and each major fund of the West Patterson Financing Authority (the “Authority”) as of and for the year ended June 30, 2025, and the related notes to the basic financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, and each major fund of the Authority, as of June 30, 2025, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

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To the Board of Directors
of the West Patterson Financing Authority
Patterson, California

Page 2 ends

In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we
 exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for a reasonable period of time.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Budgetary Comparison Schedules, as listed in the accompanying table of contents, be presented to supplement the basic financial statements.

Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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To the Board of Directors
of the West Patterson Financing Authority
Patterson, California

Page 3 ends

3 Management has omitted the management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 20, 2026, on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

Walnut Creek, California
February 20, 2026
Packet Pg. 1108
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Packet Pg. 1109
2121 North California Blvd., Suite 290
Walnut Creek, California 94596

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Board of Directors
of the West Patterson Financing Authority
Patterson, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of the West Patterson Financing Authority (the “Authority”) as of and for the year ended June 30, 2025, and the related notes to the basic financial statements, which collectively comprise Authority’s basic financial statements and have issued our report thereon dated February 20, 2026.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the Authority’s internal control over financial reporting (“internal control”) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statement, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Authority’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Packet Pg. 1110
To the Board of Directors
of the West Patterson Financing Authority
Patterson, California

Page 2 ends

6 Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Walnut Creek, California
February 20, 2026
Packet Pg. 1111

BASIC FINANCIAL STATEMENTS
7 Packet Pg. 1112
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8 Packet Pg. 1113

GOVERNMENT-WIDE FINANCIAL STATEMENTS
9 Packet Pg. 1114
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10 Packet Pg. 1115
Governmental
Activities
ASSETS
Current assets:

Cash $ 4,830,821
Intergovernmental receivable 128,279
Interest receivable 104,476
Total current assets 5,076,902
Noncurrent assets:

Notes receivable - noncurrent 936,509
Restricted cash and investments 19,645,441
Total noncurrent assets 20,581,950
Total assets 25,658,852

LIABILITIES
Current liabilities:

Accounts payable 7,904
Accrued interest payable 1,600,095
Due to City of Patterson 47,530
Due within one year:

Long-term debt 2,505,023
Total current liabilities 4,160,552
Noncurrent liabilities:

Due in more than one year:

Long-term debt 86,587,151
Total noncurrent liabilities 86,587,151
Total liabilities 90,747,703

NET POSITION (DEFICIT)
Restricted for debt service 19,645,441
Unrestricted (deficit) (84,734,292)
Total net position (deficit) $ (65,088,851)
West Patterson Financing Authority
Statement of Net Position
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 11 Packet Pg. 1116
Revenue and
Changes in
Net Position
Governmental
Functions/Programs Expenses Activities
Governmental activities:

General government $ (1,266,204) 1,266,204 $
Interest and fiscal charges (4,800,147) 4,800,147
Total governmental activities (6,066,351) 6,066,351
Total primary government $ (6,066,351) 6,066,351
General revenues:

Assessment fee 7,690,118
Developer fee 3,377
Investment earnings 1,464,308
Capital contributions to the City of Patterson (4,869,202) Total general revenues 4,288,601
Change in net position (1,777,750)
Net Position (Deficit):

Beginning of year (63,311,101)
End of year $ (65,088,851)
For the Year Ended June 30, 2025
Net (Expense)
West Patterson Financing Authority
Statement of Activities
See accompanying Notes to the Basic Financial Statements. 12 Packet Pg. 1117

FUND FINANCIAL STATEMENTS
13 Packet Pg. 1118
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14 Packet Pg. 1119

GOVERNMENTAL FUND FINANCIAL STATEMENTS
15 Packet Pg. 1120
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16 Packet Pg. 1121
CFD 2001-1 CFD 2005-1 CFD 2015-1 CFD 2018-1 CFD 2022-2 Total Special Tax Special Tax Special Tax Special Tax Special Tax Governmental Bonds Bonds Bonds Bonds Bonds Funds
ASSETS
Cash 3,525,505 $ 83,590 $ - $ 933,662 $ 288,064 $ 4,830,821 $ Restricted cash and investments 228,169 9,139,303 429,721 9,848,248 - 19,645,441 Accounts receivable 4,777 7,707 - 661 181 13,326
Intergovernmental receivable 47,092 73,087 - 6,290 1,810 128,279 Interest receivable 58,200 35,989 - 7,863 2,424 104,476 Notes receivable 936,509 - - - - 936,509
Total assets $ 9,339,676 4,800,252 $ 429,721 $ 10,796,724 $ 292,479 $ 25,658,852 $

LIABILITIES, DEFERRED INFLOWS

OF RESOURCES, AND FUND BALANCES
LIABILITIES:

Accounts payable - $ 3,420 $ 1,154 $ 3,330 $ - $ 7,904 $ Due to City of Patterson - - 47,530 - - 47,530
Total liabilities 3,420 - 48,684 3,330 - 55,434
FUND BALANCES:

Restricted for debt service 4,800,252 9,336,256 381,037 10,793,394 292,479 25,603,418 Total fund balances 9,336,256 4,800,252 381,037 10,793,394 292,479 25,603,418 Total liabilities, deferred inflows
of resources, and fund balance $ 9,339,676 4,800,252 $ 429,721 $ 10,796,724 $ 292,479 $ 25,658,852 $ West Patterson Financing Authority
Balance Sheet
Governmental Funds
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 17 Packet Pg. 1122
Total fund balances of governmental funds $ 25,603,418
Amounts reported for governmental activities in the Statement of Net Position are different because:

Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the Governmental Funds Balance Sheet. (1,600,095) Long-term liabilities are not due and payable in the current period and therefore are not reported in the Governmental Funds Balance Sheet.

Long-term debt (89,092,174)
Net position (deficit) of governmental activities $ (65,088,851) West Patterson Financing Authority
Reconciliation of the Governmental Funds
Balance Sheet to the Government-Wide Statement of Net Position June 30, 2025
See accompanying Notes to the Basic Financial Statements. 18 Packet Pg. 1123
CFD 2001-1 CFD 2005-1 CFD 2015-1 CFD 2018-1 CFD 2022-2 Total Special Tax Special Tax Special Tax Special Tax Special Tax Governmental Bonds Bonds Bonds Bonds Bonds Funds
REVENUES:

Assessment fee 5,038,595 $ 1,157,338 $ 304,262 $ 888,146 $ 301,777 $ 7,690,118 $ Developer fee - - - 3,377 - 3,377
Interest 280,976 493,084 1,140 684,095 5,013 1,464,308
Total revenues 1,650,422 5,319,571 305,402 1,575,618 306,790 9,157,803 EXPENDITURES:

General administration 18,443 15,146 5,553 1,212,751 14,311 1,266,204 Debt service:

Principal 2,093,122 155,000 60,000 65,000 - 2,373,122
Interest and fiscal charges 3,287,147 651,900 237,588 711,094 - 4,887,729 Total expenditures 822,046 5,398,712 303,141 1,988,845 14,311 8,527,055

REVENUES OVER (UNDER)
EXPENDITURES 828,376 (79,141) 2,261 (413,227) 292,479 630,748 OTHER FINANCING SOURCES (USES):

Capital contributions to the City of Patterson (2,130,117) (2,738,130) - (955) - (4,869,202) Total other financing sources (uses) (2,738,130) (2,130,117) - (955) - (4,869,202) Net change in fund balances (1,909,754) (2,209,258) 2,261 (414,182) 292,479 (4,238,454) FUND BALANCES:

Beginning of year 7,009,510 11,246,010 378,776 11,207,576 - 29,841,872 End of year $ 9,336,256 4,800,252 $ 381,037 $ 10,793,394 $ 292,479 $ 25,603,418 $ West Patterson Financing Authority
Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Funds
For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 19 Packet Pg. 1124
Net change in fund balances - total governmental funds: $ (4,238,454) Amounts reported for governmental activities in the Statement of Activities are different because:

Repayment of long-term liabilities was an expenditures in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Principal payment of long-term debt 2,373,122
Amortization of bond premium and discount 30,933
Interest expenses on long-term debt was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. This amount represented the changes in accrued interest from prior year. 56,649 Change in net position of governmental activities $ (1,777,750) West Patterson Financing Authority
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2025
See accompanying Notes to the Basic Financial Statements. 20 Packet Pg. 1125
21 NOTES TO THE BASIC FINANCIAL STATEMENTS
Packet Pg. 1126
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Packet Pg. 1127
West Patterson Financing Authority
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
23 Page
Note 1 – Summary of Significant Accounting Policies .............................................................................................. 25 A. Financial Reporting Entity .......................................................................................................................... 25 B. Basis of Accounting and Measurement Focus ............................................................................................ 25 C. Cash and Investments ................................................................................................................................. 26 D. Restricted Cash and Investments ................................................................................................................ 27 E. Receivables ................................................................................................................................................. 27 F. Long-Term Debt ......................................................................................................................................... 27 G. Special Tax ................................................................................................................................................. 27 H. Net Position ................................................................................................................................................ 28 I. Fund Balances ............................................................................................................................................. 28 J. Use of Estimates ......................................................................................................................................... 28 Note 2 – Cash and Investments ................................................................................................................................... 28 A. Cash Deposits ............................................................................................................................................. 29 B. Investments ................................................................................................................................................. 30 C. Risk Disclosures ......................................................................................................................................... 31 Note 3 – Notes Receivable ............................................................................................................................................ 32 Note 4 – Due to City of Patterson ................................................................................................................................ 32 Note 5 – Capital Contributions to the City of Patterson ........................................................................................... 32 Note 6 – Long-Term Debt ............................................................................................................................................ 32 Packet Pg. 1128
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Packet Pg. 1129
West Patterson Financing Authority
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
25 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the West Patterson Financing Authority (the “Authority” or “WPFA”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the Authority’s accounting policies are described below.

A. Financial Reporting Entity
The Authority was formed in 2001 pursuant to a joint exercise of powers agreement between the City of Patterson, California (the “City”) and the former Redevelopment Agency of the City. The primary activity of the Authority is issuing special tax bonds on behalf of the West Patterson Financing Authority Community Facilities District No. 2001-1 (Public Improvements). The proceeds of the special tax bonds are used to finance the costs of certain engineering, design, construction and other expenses related to public infrastructure improvements.

On October 18, 2005, pursuant to Resolution No. 2005-04 of the Board of Directors of the Authority founded its Community Facilities District No. 2005-1 (West Patterson Business Park) and authorized special tax levies therein.

On June 2, 2015 pursuant to Resolution No.2015-03 of the Board of Directors of the Authority founded its Community Facilities District No. 2015-1 (Arambel-KND) and authorized special tax levies therein.

On October 16, 2018 pursuant to Resolution No. 2018-04 of the Board of Directors of the Authority founded its Community Facilities District No. 2018-1 (Villages of Patterson) and authorized special tax levies therein.

On November 15, 2022, pursuant to Resolution No. 2022-02 of the Board of Directors of the Authority founded its Community Facilities District No. 2022-2 (Baldwin Ranch Infr2astructure) and authorized special tax levies therein.

The financial activities of the Authority are included in the City’s custodial funds.

B. Basis of Accounting and Measurement Focus
Fund Accounting
The accounts of the Authority are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The Authority’s government-wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental activities for the Authority.

These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the Authority’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.

Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated.

Packet Pg. 1130
West Patterson Financing Authority
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
26 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all major governmental funds. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The Authority has presented all of its funds as major funds.

All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances present increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in fund balances.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

The primary revenue sources, which have been treated as susceptible to accrual by the Authority is assessments and interest income. Certain indirect costs are included in program expenses reported for individual functions and activities. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

The reconciliation of the fund financial statements to the government-wide financial statements is provided to explain the differences.

Governmental funds of the Authority are outlined below:

CFD 2001-1 Special Tax Bonds – This debt service fund is used to account for the debt service payments, investment income, and projects related to the 2013 Special Tax Bonds.

CFD 2005-1 Special Tax Bonds – This debt service fund is used to account for the debt service payments, investment income, and projects related to the Community Facilities District 2005-1 (West Patterson Business Park) Special Tax Bonds.

CFD 2015-1 Special Tax Bonds – This debt service fund is used to account for the debt service payments, investment income, and projects related to the Community Facilities District 2015-1 (Arambel-KND) Special Tax Bonds.

CFD 2018-1 Special Tax Bonds – This debt service fund is used to account for the debt service payments, investment income, and projects related to the Community Facilities District 2018-1 (Villages of Patterson) Special Tax Bonds.

CFD 2022-2 Special Tax Bonds – This debt service fund is used to account for the debt service payments, investment income, and projects related to CFD 2022-2.

C. Cash and Investments
The Authority’s cash and investments considered to be cash equivalents, consist of cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and reported as Cash and Investments. The Authority's cash and investments are held by the City in its pooled cash and investments, except for funds required to be held by fiscal agents under the provisions of bond indentures.

Packet Pg. 1131
West Patterson Financing Authority
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
27 Note 1 – Summary of Significant Accounting Policies (Continued) C. Cash and Investments (Continued)
Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

D. Restricted Cash and Investments
Certain restricted cash and investments are held by a fiscal agent for the redemption of bonded debt and for acquisition and construction of capital projects.

E. Receivables
Receivables include such items as assessments, interest, notes, and miscellaneous accounts receivable. No allowance for doubtful accounts has been established, as the Authority believes all amounts are considered collectible in the normal course of business.

F. Long-Term Debt
In the government-wide financial statements long-term liabilities and other long-term obligations are reported as liabilities in the applicable governmental activities Statement of Net Position. Initial issue bond premiums and discounts, are deferred and amortized over the life of the bonds using the straight-line method. The difference between the reacquisition price of refunding bonds and the net carrying amount of refunded debt (deferred amount on refunding) is amortized over the shorter of the lives of the refunding debt or remaining life of the refunded debt.

Bond issuance costs except for insurance, are expenses in the period incurred. Amortization of bond premiums or discounts, issuance costs, and deferred amounts on refunding is included in interest expense.

In the fund financial statements, governmental fund types recognize bond premiums, discounts, and issuance costs during the period issued. The face amount of debt issued is reported as other financing sources. Premiums received are reported as other financing sources, while discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

G. Special Tax
The Community Facilities Districts established by the Authority are authorized to levy special taxes annually on real property located within the Community Facilities Districts. The County of Stanislaus levies, bills, and collects the special property taxes for the Authority. The County of Stanislaus remits Community Facilities District special taxes collected on the County tax roll to the Authority in three installments during the months of December, April, and July.

Tax collections of special taxes on the County tax roll are the responsibility of the County Tax Collector. Taxes and assessments on secured and utility rolls which constitute a lien against the property, are levied and payable in two installments; the first is due November 1 of the fiscal year and is delinquent if not paid by December 10; and the second is due on March 1 of the fiscal year and is delinquent if not paid by April 10. Significant penalties are imposed under State law for late payment.

Tax levy dates are attached annually on January 1 preceding the fiscal year for which the taxes are levied. The fiscal year begins July 1 and ends June 30 of the following year. Taxes are levied on real property, as it exists at that time. Liens against real estate are not relieved by subsequent renewal or change in ownership.

Packet Pg. 1132
West Patterson Financing Authority
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
28 Note 1 – Summary of Significant Accounting Policies (Continued) G. Special Tax (Continued)
In order to collect delinquent special tax levies, the Authority may conduct foreclosure actions against the property on which the special taxes are levied. In some cases, the Authority will "strip" the delinquent special tax amount from the County ad valorem tax roll, and proceed to enforce the payment of the special taxes itself through collection efforts including possible judicial foreclosure.

H. Net Position
For government-wide financial statements, net position is categorized as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets. There is no net investment in capital assets as of June 30, 2025.

Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

When expenses are incurred for purposes for which both restricted and unrestricted net position is available, the Authority’s policy is to apply restricted net position first.

I. Fund Balances
The Authority reports the fund balances for governmental funds in specific classifications (nonspendable, restricted, committed, assigned, and unassigned), which creates a hierarchy primarily based on the extent to which the Authority is bound to the constraints on the specific purpose for which funds can be spent. The Authority only receive restricted revenues; therefore, any remaining fund balances are restricted by nature of the revenue received.

J. Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosure. Accordingly, actual results could differ from those estimates.

Note 2 – Cash and Investments
The following is a summary of pooled cash and investments and restricted cash and investments at June 30, 2025:

Governmental
Activities
Cash and investments 4,830,821 $
Restricted cash and investments with fiscal agents 19,645,441 Total cash and investments $ 24,476,262
Packet Pg. 1133
West Patterson Financing Authority
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
29 Note 2 – Cash and Investments (Continued)
Cash, cash equivalents, and investments, consisted of the following at June 30, 2025:

Cash and cash equivalents:

Pooled cash with the City of Patterson 4,830,821 $
Total cash and cash equivalents 4,830,821
Investments:

Money market mutual funds 19,645,441
Total investments 19,645,441
Total cash and investments $ 24,476,262
At June 30, 2025, investments, are reported at fair value based on quoted market prices. The following table represents the fair value measurements of investments recognized in the accompanying Statement of Net Position measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2025:

Measurement Valuation
Fair Value Input Technique
Investments:

Money market mutual funds 19,645,441 $ Uncategorized N/A Total investments $ 19,645,441
A. Cash Deposits
The carrying amounts of the Authority’s pooled cash and investment with the City was $4,830,821 at June 30, 2025. The Authority pools its cash and investments of all funds with the City to facilitate the management of cash and achieve the goal of obtaining the highest yield with the greatest safety and least risk. The pool is managed by the City Treasurer for investing, except for certain restricted funds and investments held in trust, which are held and invested by outside custodians through contractual agreements. These restricted funds include cash with fiscal agents. The total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City’s name is discussed below.

Investments held in the City of Patterson's cash and investments pool are available on demand. Information regarding the City's cash and investment pools is described in the City's Annual Comprehensive Financial Report.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name.

The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits; however, the City has not waived the collateralization requirements.

Packet Pg. 1134
West Patterson Financing Authority
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
30 Note 2 – Cash and Investments (Continued)
B. Investments
Investments Authorized by the California Code and the Authority’s Investments Policy The table below identifies the investment types that are authorized by the Authority's investment policy. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the Authority, rather than the general provisions of the California Government Code or the Authority's investment policy.

Investments Authorized by Debt Agreements
Investment of debt issuances held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Authority's investment policy. The table below identifies the investment types that are authorized by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage of Investment in
Maturity Portfolio one Issuer
U.S. Treasury Obligation 5 years None None
U.S. Agency Securities 5 years None None
Certificates of Deposit 2 years None None
Local Agency Investment Fund (LAIF) None None None
Money Market Funds None None None
Annuities None None None
Mutual Funds None 5% None
Corporate Notes (Minimum rating of "AAA") 5 years 5% None Local Agency Bonds (Local obligation bonds) 5 years None None Authorized Investment Type
Packet Pg. 1135
West Patterson Financing Authority
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
31 Note 2 – Cash and Investments (Continued)
C. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Authority's interest rate risk is mitigated is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the Authority's investments to market rate fluctuations is provided by the following table that shows the distribution of the Authority's investments by maturity as of June 30, 2025:

Maturity
12 Months
Fair Value or Less
Investments:

Money market mutual funds 19,645,441 $ 19,645,441 $
Total investments $ 19,645,441 19,645,441 $
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or debt agreements, and the actual rating as of the fiscal year for each investment type.

Minimum
Legal
Fair Value Rating S&P Moody's
Investments:

Money market mutual funds 19,645,441 $ N/A AAAm Aaa-mf
Total investments $ 19,645,441
Credit Rating
Disclosures Relating to Concentration of Credit Risk
The Authority complies with the limitations on the amount that can be invested in any one issuer as stipulated by the California Government Code. The Authority held no investments in a single issuer (other than external investment pools and mutual funds) that represented 5% or more of total Authority investment as of June 30, 2025.

Disclosures Relating to Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. brokerdealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. None of the Authority’s investments was subject to custodial credit risk.

Packet Pg. 1136
West Patterson Financing Authority
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
32 Note 3 – Notes Receivable
On November 7, 2017, the Patterson City Council adopted Ordinance No. 806 to establish a Cannabis Business Pilot Program, which allows for the regulation of cannabis businesses with the City. On December 5, 2017, the Authority entered into a development agreement with a developer to improve, develop, and use real property to operate a cannabis dispensary in the City. As part of the development agreement, the developer issued a promissory note to the Authority for $1,045,000 with an annual interest rate of 5% commencing with the developer’s start of business. The developer agreed to pay the Authority a monthly payment of $5,610 (including principal and interest) through July 2024 with a balloon payment of $898,124 due on August 1, 2025. At June 30, 2025, the outstanding balance of the note receivable was $936,509.

Note 4 – Due to City of Patterson
At June 30, 2025, the Authority owes the City in the amount of $47,530 to cover the cash overdrawn in CFD 2015-1.

Note 5 – Capital Contributions to the City of Patterson For the year ended June 30, 2025, the Authority contributed bond proceeds in the amount of $4,869,202 to the City for funding the I-5 and Sperry interchange project, the WQCF Phase III Expansion project, and the Public Safety Center project.

Note 6 – Long-Term Debt
The Authority issued each of the respective bonds and notes on behalf of CFD 2001-1, CFD 2005-1, CFD 2015-1, and 2018-1. Summary of changes in long-term liabilities for the governmental activities for the year ended June 30, 2025 is as follows:

Original Balance Balance Due Within Due In More
Issuance July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Public Offering:

CFD 2001-1 Series:

Series 2013 A-1 Special Tax Bonds $ 35,714,049 $ 28,675,982 $ (941,453) - $ $ 27,734,529 $ 989,092 $ 26,745,437 Series 2013 A-2 Special Tax Bonds 29,486,669 22,959,348 (1,023,039) - 21,936,309 1,093,633 20,842,676 Series 2013 B Special Tax Bonds 4,353,803 3,355,009 (128,630) - 3,226,379 132,298 3,094,081 CFD 2005-1 West Patterson Business Park Series:

Series 2015 Special Tax Bonds 9,630,000 8,920,000 (145,000) - 8,775,000 160,000 8,615,000 Less: bond discount (302,797) (201,865) 10,093 - (191,772) - (191,772) Series 2021 Special Tax Bonds 6,800,000 6,770,000 (10,000) - 6,760,000 15,000 6,745,000 Add: bond premium 680,313 646,297 (22,677) - 623,620 - 623,620 CFD 2015-1 Arambel-KND Special Tax Bonds 4,775,000 4,560,000 (60,000) - 4,500,000 65,000 4,435,000 Add: bond premium 10,861 7,965 - (362) 7,603 - 7,603
CFD 2018-1 Villages of Patterson Special Tax Bonds 4,465,000 4,385,000 (45,000) - 4,340,000 40,000 4,300,000 Add: bond premium 486,498 462,173 (16,217) - 445,956 - 445,956 CFD 2018-1 2024 Bonds (2nd bond tranche) 10,905,000 10,905,000 (20,000) - 10,885,000 10,000 10,875,000 Add: bond premium 53,090 51,320 (1,770) - 49,550 - 49,550 Total long-term debt $ 91,496,229 107,057,486 $ - $ (2,404,055) $ 89,092,174 $ 2,505,023 $ 86,587,151 $ Packet Pg. 1137
West Patterson Financing Authority
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
33 Note 6 – Long-Term Debt (Continued)
Special Tax Refunding Bonds, Series 2013-A-1
On August 14, 2013, the Authority issued $35,714,049 of special tax refunding bonds (Series 2013-A-1) to repay, in part, the principal of the Authority's Special Tax Bond Series 2002-A, 2003-A, 2003-B, 2004-A, 2004-B, 2009-A, and 2009-B. Interest on the bonds is payable semi-annually on March 1 and September 1 of each year through September 1, 2039, beginning on March 1, 2014. The interest rate on the bonds is 5.62%. Principal payments are due annually beginning on September 1, 2014. The bonds are secured by a first pledge of the special tax revenues and funds on deposit in the Bond Fund, Reserve Fund, and Special Tax Fund. The outstanding balance of the Series 2013- A-1 bonds at June 30, 2025 was $27,734,529.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 989,092 $ 1,530,887 $ 2,519,979
2027 1,059,881 1,473,311 2,533,192
2028 1,091,721 1,412,851 2,504,572
2029 1,118,332 1,350,748 2,469,080
2030 1,144,525 1,287,162 2,431,687
2031-2035 6,949,597 5,379,772 12,329,369
2036-2040 15,381,381 2,478,389 17,859,770
Total 27,734,529 $ $ 14,913,120 $ 42,647,649
Special Tax Refunding Bonds, Series 2013-A-2
On August 14, 2013, the Authority issued $29,486,669 of special tax refunding bonds (Series 2013-A-2) to repay, in part, the principal of the Authority's Special Tax Bond Series 2002-A, 2003-A, 2003-B, 2004-A, 2004-B, 2009-A, and 2009-B. Interest on the bonds is payable semi-annually on March 1 and September 1 of each year through September 1, 2039, beginning on March 1, 2014. The interest rate on the bonds is 6.61%. Principal payments are due annually beginning on September 1, 2014. The bonds are secured by a first pledge of the special tax revenues and funds on deposit in the Bond Fund, Reserve Fund, and Special Tax Fund. The outstanding balance of the Series 2013- A-2 bonds at June 30, 2025 was $21,936,309.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 $ 1,093,633 $ 1,413,845 $ 2,507,478
2027 1,188,971 1,338,405 2,527,376
2028 1,301,153 1,256,107 2,557,260
2029 1,415,854 1,166,310 2,582,164
2030 1,542,939 1,068,522 2,611,461
2031-2035 8,701,813 3,609,442 12,311,255
2036-2040 6,691,946 971,143 7,663,089
Total 21,936,309 $ $ 10,823,774 $ 32,760,083
Packet Pg. 1138
West Patterson Financing Authority
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
34 Note 6 – Long-Term Debt (Continued)
Special Tax Refunding Bonds, Series 2013-B
On August 14, 2013, the Authority issued $4,353,803 of special tax refunding bonds (Series 2013-B) to repay, in part, the principal of the Authority's Special Tax Bond Series 2002-A, 2003-A, 2003-B, 2004-A, 2004-B, 2009-A, and 2009- B. Interest on the bonds is payable semi-annually on March 1 and September 1 of each year through September 1, 2039, beginning on March 1, 2014. The interest rate on the bonds is 6.61%. Principal payments are due annually beginning on September 1, 2014. The bonds are secured by a first pledge of the special tax revenues and funds on deposit in the Bond Fund, Reserve Fund, and Special Tax Fund. The outstanding balance of the Series 2013-A-1 bonds at June 30, 2025 was $3,226,379.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 132,298 $ 208,891 $ 341,189 $
2027 141,045 199,857 340,902
2028 150,368 190,226 340,594
2029 160,308 179,958 340,266
2030 170,905 169,012 339,917
2031-2035 1,039,659 653,794 1,693,453
2036-2040 1,431,796 248,698 1,680,494
Total $ 3,226,379 $ 1,850,436 $ 5,076,815
Community Facilities District No. 2005-1 (West Patterson Business Park) Special Tax Bonds, Series 2015 On September 29, 2015, the Authority issued $9,630,000 of special tax refunding bonds (Series 2015) to finance a portion of the costs of acquiring and constructing certain public infrastructure improvements necessary for development of property within the District. The bonds were issued with an original issue discount of $302,797. Interest on the bonds is payable semi-annually on March 1 and September 1 of each year through September 1, 2045, beginning on March 1, 2016. The bonds bear interest ranging from 2.00% to 4.50%. Principal payments are due annually beginning on September 1, 2016. The bonds are secured by a first pledge of the special tax revenues and funds on deposit in the Bond Fund, Reserve Fund, and Special Tax Fund. The outstanding balance of the CFD 2005-1 Special Tax bonds at June 30, 2025 was $8,775,000.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 160,000 $ 383,544 $ 543,544 $
2027 180,000 377,056 557,056
2028 195,000 369,669 564,669
2029 215,000 361,469 576,469
2030 235,000 352,322 587,322
2031-2035 1,535,000 1,583,109 3,118,109
2036-2040 2,260,000 1,167,959 3,427,959
2041-2045 3,215,000 556,313 3,771,313
2046 780,000 17,550 797,550
Total 8,775,000 $ 5,168,991 $ 13,943,991 $
Packet Pg. 1139
West Patterson Financing Authority
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
35 Note 6 – Long-Term Debt (Continued)
Community Facilities District 2005-1 (West Patterson Business Park) Special Tax Bonds, Series 2021 In December 2021, the West Patterson Financing Authority issued $6,800,000 Community Facilities District No. 2005-1 (West Patterson Business Park) Special Tax Bonds, Series 2021 (“CFD 2005-1 Series 2021”). The CFD 2005-1 Series 2021 bonds were sold as non-rated securities and have a final maturity date of 2049. The CFD 2005-1 Series 2021 bonds are being issued to (i) construct and acquire certain public facilities of benefit to the District, (ii) provide for the establishment of a reserve fund, and (iii) pay the costs of issuance of the 2021 Bonds. The bonds were issued with an original issue premium of $680,313. Interest on the CFD 2005-1 Series 2021 bonds is payable semiannually on March 1 and September 1 of each year, commencing March 1, 2022. Principal on the 2021 Bonds is payable annually beginning September 1, 2022 and each year thereafter until September 1, 2049. The outstanding balance of the CFD 2005-1 Series 2021 bonds at June 30, 2025 was $6,760,000.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 15,000 $ 277,356 $ 292,356 $
2027 20,000 281,963 301,963
2028 30,000 291,400 321,400
2029 35,000 295,669 330,669
2030 40,000 299,825 339,825
2031-2035 310,000 1,591,125 1,901,125
2036-2040 545,000 1,756,700 2,301,700
2041-2045 860,000 1,933,000 2,793,000
2046-2050 4,905,000 5,485,900 10,390,900
Total 6,760,000 $ 12,212,938 $ 18,972,938 $
Community Facilities District No. 2015-1 (Arambel-KND) Special Tax Bonds On September 29, 2015, the Authority issued $4,775,000 of special tax refunding bonds (Series 2015) to finance a portion of the costs of acquiring and constructing certain public infrastructure improvements necessary for development of property within the District. The bonds were issued with an original issue premium of $10,861. Interest on the bonds is payable semi-annually on March 1 and September 1 of each year through September 1, 2045, beginning on March 1, 2016. The bonds bear interest ranging from 5.00% to 5.25%. Principal payments are due annually beginning on September 1, 2016. The bonds are secured by a first pledge of the special tax revenues and funds on deposit in the Bond Fund, Reserve Fund, and Special Tax Fund. The outstanding balance of the CFD 2015-1 Special Tax bonds at June 30, 2025 was $4,500,000.

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West Patterson Financing Authority
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
36 Note 6 – Long-Term Debt (Continued)
Community Facilities District No. 2015-1 (Arambel-KND) Special Tax Bonds (Continued) The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 65,000 $ 234,463 $ 299,463 $
2027 75,000 230,869 305,869
2028 85,000 226,669 311,669
2029 95,000 221,944 316,944
2030 110,000 216,563 326,563
2031-2035 750,000 977,813 1,727,813
2036-2040 1,160,000 728,963 1,888,963
2041-2045 1,730,000 353,588 2,083,588
2046 430,000 11,288 441,288
Total 4,500,000 $ 3,202,160 $ 7,702,160 $
Community Facilities District 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2021 On October 27, 2021 the West Patterson Financing Authority issued $4,465,000 Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2021 (“CFD 2018-1 Series 2021”). The bonds were issued with an original issue premium of $486,498. The bonds were sold as non-rated securities, have a final maturity date of 2051 with coupons ranging from 3.00% to 4.00% and yields ranging from 1.51% to 2.74%. The CFD 2018-1 Series 2021 bonds were issued to (i) construct and acquire certain public facilities of benefit to the district, (ii) provide for the establishment of a reserve fund, and (iii) pay the costs of issuance of the CFD 2018-1 Series 2021 bonds. Interest on the Bonds is payable semiannually on March 1 and September 1 of each year, commencing March 1, 2022.

Principal on the CFD 2018-1 Series 2021 bonds is payable annually beginning September 1, 2022 and each year thereafter until September 1, 2051. The outstanding balance of the CFD 2018-1 Series 2021 bonds at June 30, 2025 was $4,340,000.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 40,000 $ 212,150 $ 252,150 $
2027 45,000 215,875 260,875
2028 50,000 219,200 269,200
2029 55,000 222,100 277,100
2030 65,000 229,700 294,700
2031-2035 435,000 1,211,900 1,646,900
2036-2040 675,000 1,341,500 2,016,500
2041-2045 970,000 1,473,000 2,443,000
2046-2050 1,345,000 1,618,500 2,963,500
2051-2052 660,000 686,800 1,346,800
Total 4,340,000 $ 7,430,725 $ 11,770,725 $
Packet Pg. 1141
West Patterson Financing Authority
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
37 Note 6 – Long-Term Debt (Continued)
Community Facilities District 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2024 On February 22, 2024 the West Patterson Financing Authority issued $10,905,000 Community Facilities District No. 2018-1 (Villages of Patterson) Special Tax Bonds, Series 2024 (“CFD 2018-1 Series 2024”). The bonds were issued with an original issue premium of $53,090. The bonds were sold as non-rated securities, have a final maturity date of 2054 with coupons ranging from 4.375% to 5.00% and yields ranging from 3.81% to 4.82%. The CFD 2018-1 Series 2024 bonds were issued to (i) construct and acquire certain public facilities of benefit to the district, (ii) provide for the establishment of a reserve fund, and (iii) pay the costs of issuance of the CFD 2018-1 Series 2024 bonds. Interest on the Bonds is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2024. Principal on the CFD 2018-1 Series 2024 bonds is payable annually beginning September 1, 2025 and each year thereafter until September 1, 2054. The outstanding balance of the CFD 2018-1 Series 2024 bonds at June 30, 2025 was $10,885,000.

Year Ending
June 30, Principal Interest Total
2026 10,000 $ 533,744 $ 543,744 $
2027 20,000 542,994 562,994
2028 35,000 556,619 591,619
2029 50,000 569,494 619,494
2030 60,000 576,744 636,744
2031-2035 545,000 3,061,844 3,606,844
2036-2040 1,045,000 3,366,094 4,411,094
2041-2045 1,705,000 3,710,797 5,415,797
2046-2050 2,560,000 4,087,556 6,647,556
2051-2055 4,855,000 5,549,875 10,404,875
Total 10,885,000 $ 22,555,761 $ 33,440,761 $
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39 REQUIRED SUPPLEMENTARY INFORMATION
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40 This page intentionally left blank.

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Western Patterson Financing Authority
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2025
41 Budgetary Information
The Authority maintains budgetary controls in order to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The Authority maintains an encumbrance accounting system to provide management with information regarding obligations against appropriations. Budgetary compliance is based on expenditures during the period (U.S. GAAP), rather than expenditures and encumbrances (non-GAAP).

Because appropriations lapse at June 30, encumbrances outstanding at June 30, 2025 are disclosed in the notes to the financial statements. Appropriations for fiscal year 2025 will provide authority to complete those transactions.

The Authority is required by its municipal code to adopt an annual budget on or before June 30 for the ensuing fiscal year. From the effective date of the budget, the amounts become the "annual appropriated budget".

The following procedures are performed by the Authority in establishing the budgetary data reflected in the financial statements:

1. The Finance Director submits a preliminary budget by June 30 of each year to Board of Directors. This allows the Authority to continue normal operations until the final budget is adopted in July. The operating budget includes proposed expenditures and the means of financing them.

2. Public hearings are conducted to obtain taxpayers' comments.

3. The appropriated budget is prepared by fund, department, and division. The government department heads may make transfers of appropriation within a department. Transfers of appropriations between departments requires approval of the City Manager. The legal level of budgetary control (i.e., the level at which expenditures may not legally exceed appropriations) is the fund level.

4. The budget is legally adopted through the passage of a council resolution.

5. The Board of Directors may amend the budget by resolution during the fiscal year. The City Manager may transfer appropriations from one program, activity, or object to another within the same fund. All appropriations lapse at the end of the fiscal year to the extent they have not been expended. Capital project funds are based on a project time frame, rather than a fiscal year "operating" time frame reappropriating unused appropriations from year to year until project completion.

6. A budget review is presented to the City Council by the City Manager mid-year and approved additions or changes are legally adopted through Council resolution.

7. Formal budgetary integration is employed as a management control device during the year for the funds.

8. Budgets for the funds are adopted on a basis consistent with United States generally accepted accounting principles.

Packet Pg. 1146
West Patterson Financing Authority
Required Supplementary Information (Unaudited) (Continued) For the Year Ended June 30, 2025
42 Budgetary Comparison Schedule – CFD 2001-1 Special Tax Bonds Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Assessment fee $ 5,572,899 $ 5,572,899 $ 5,038,595 $ (534,304) Interest 178,540 178,540 280,976 102,436
Total revenues 5,751,439 5,751,439 5,319,571 (431,868)
EXPENDITURES:

General administration - 88,254 18,443 69,811
Debt service:

Principal 2,030,490 2,030,490 2,093,122 (62,632)
Interest and fiscal charges 3,311,268 3,311,268 3,287,147 24,121 Total expenditures 5,341,758 5,430,012 5,398,712 31,300

REVENUES OVER (UNDER)
EXPENDITURES 409,681 321,427 (79,141) (400,568)
OTHER FINANCING SOURCES (USES):

Capital contributions to the City of Patterson (2,129,918) (2,130,117) (2,130,117) - Total other financing sources (uses) (2,129,918) (2,130,117) (2,130,117) - Net change in fund balance $ (1,720,237) $ (1,808,690) (2,209,258) $ (400,568) FUND BALANCE:

Beginning of year 7,009,510
End of year $ 4,800,252
Budgeted Amounts
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West Patterson Financing Authority
Required Supplementary Information (Unaudited) (Continued) For the Year Ended June 30, 2025
43 Budgetary Comparison Schedule – CFD 2005-1 Special Tax Bonds Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Assessment fee $ 1,115,787 $ 1,115,787 $ 1,157,338 $ 41,551 Interest 176,007 176,007 493,084 317,077
Total revenues 1,291,794 1,291,794 1,650,422 358,628
EXPENDITURES:

General administration 50,697 52,606 15,146 37,460
Debt service:

Principal 155,000 155,000 155,000 -
Interest and fiscal charges 651,900 651,900 651,900 -
Total expenditures 857,597 859,506 822,046 37,460

REVENUES OVER (UNDER)
EXPENDITURES 434,197 432,288 828,376 396,088
OTHER FINANCING SOURCES (USES):

Capital contributions to the City of Patterson (8,133,260) - (2,738,130) 5,395,130 Total other financing sources (uses) (8,133,260) - (2,738,130) 5,395,130 Net change in fund balance $ 434,197 $ (7,700,972) (1,909,754) $ 5,791,218 FUND BALANCE:

Beginning of year 11,246,010
End of year $ 9,336,256
Budgeted Amounts
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West Patterson Financing Authority
Required Supplementary Information (Unaudited) (Continued) For the Year Ended June 30, 2025
44 Budgetary Comparison Schedule – CFD 2015-1 Special Tax Bonds Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Assessment fee 335,994 $ 335,994 $ 304,262 $ (31,732) $ Interest 627 627 1,140 513
Total revenues 336,621 336,621 305,402 (31,219)
EXPENDITURES:

General administration 15,728 16,346 5,553 10,793
Debt service:

Principal 60,000 60,000 60,000 -
Interest and fiscal charges 239,088 239,088 237,588 1,500 Total expenditures 315,434 314,816 303,141 12,293
Net change in fund balance $ 21,187 21,805 $ 2,261 (18,926) $ FUND BALANCE:

Beginning of year 378,776
End of year $ 381,037
Budgeted Amounts
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West Patterson Financing Authority
Required Supplementary Information (Unaudited) (Continued) For the Year Ended June 30, 2025
45 Budgetary Comparison Schedule – CFD 2018-1 Special Tax Bonds Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Assessment fee $ 539,814 $ 539,814 $ 888,146 $ 348,332
Developer fee - - 3,377 3,377
Interest 77,686 77,686 684,095 606,409
Total revenues 617,500 617,500 1,575,618 958,118
EXPENDITURES:

General administration 57,511 63,817 1,212,751 (1,148,934) Capital outlay - - - -
Debt service:

Principal 35,000 35,000 65,000 (30,000)
Interest and fiscal charges 173,675 173,675 711,094 (537,419) Total expenditures 266,186 272,492 1,988,845 (1,716,353)

REVENUES OVER (UNDER)
EXPENDITURES 351,314 345,008 (413,227) (758,235)
OTHER FINANCING SOURCES (USES):

Capital contributions to the City of Patterson (9,145,227) - (955) 9,144,272 Total other financing sources (uses) (9,145,227) - (955) 9,144,272 Net change in fund balance $ 351,314 $ (8,800,219) (414,182) $ 8,386,037 FUND BALANCE:

Beginning of year 11,207,576
End of year $ 10,793,394
Budgeted Amounts
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West Patterson Financing Authority
Required Supplementary Information (Unaudited) (Continued) For the Year Ended June 30, 2025
46 Budgetary Comparison Schedule – CFD 2022-2 Special Tax Bonds Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Assessment fee - $ 520,563 $ 301,777 $ (218,786) $
Interest - - 5,013 5,013
Total revenues 520,563 - 306,790 (213,773)
EXPENDITURES:

General administration - 264,567 14,311 250,256
Debt service:

Principal - 35,000 - 35,000
Interest and fiscal charges - 173,675 - 173,675
Total expenditures 473,242 - 14,311 458,931
Net change in fund balance $ 47,321 - $ 292,479 245,158 $ FUND BALANCE:

Beginning of year -
End of year $ 292,479
Budgeted Amounts
Packet Pg. 1151

PATTERSON PUBLIC

FINANCING AUTHORITY

AGENDA REPORT
TO: Chair Clauzel and Members of the Patterson Public Financing Authority FROM: Fernando Ulloa, Executive Director
BY: Kevin Williams, Finance Director
MEETING DATE: May 19, 2026
ITEM NO: 7.3
SUBJECT: Accept the Patterson Public Financing Authority’s 2024-25 Financial Audit Report.

RECOMMENDATION
Motion to Accept the Patterson Public Financing Authority’s 2024-25 Financial Audit Report.

BACKGROUND
The Patterson Public Financing Authority publishes financial statements presented in conformance with Generally Accepted Accounting Principles (GAAP). The financial statement was audited by the independent public accounting firm of The Pun Group, LLP, whose unmodified opinion is included within the financial section of the report. The unmodified opinion indicates that the financial statements present fairly the financial position of the Patterson Public Financing Authority as of June 30, 2025, and the results of operations, in accordance with generally accepted accounting principles. As part of the audit, The Pun Group, LLP also reviewed and performed tests of the Authority’s internal accounting control procedures to determine if there are any material weaknesses or instances of non-compliance. Based on the audit, there is no instance of noncompliance.

The Patterson Public Financing Authority’s 2024-25 financial report is available on the City of Patterson’s website and is attached to this staff report.

Representative of The Pun Group, LLP will be present to discuss the audit and answer questions.

ANALYSIS
The Government-wide Net position in the Authority’s totaled a surplus of $1,002,467 as of June 30, 2025, which changed $1,914,315 from the ending balance in the prior fiscal year.

Packet Pg. 1152
The governmental fund balance in the Authority’s totaled approximately $60.8 million as of June 30, 2025, which was $800 thousand more than the ending balance in the prior fiscal year.

The difference between Government-wide Net position and governmental fund balance are the long-term liabilities that are not due and payable in the current period and the interest payable on long-term debt does not require current financial resources and therefore are not reported in the governmental funds.

ATTACHMENT

1. Patterson Public Financing Authority’s 2024-25 Financial Audit Report Packet Pg. 1153
Patterson Public
Financing Authority
(A Component Unit of the City of Patterson)
Patterson, California
Basic Financial Statements
and Independent Auditor’s Reports
For the Year Ended June 30, 2025
Packet Pg. 1154
Packet Pg. 1155
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Basic Financial Statements
For the Year Ended June 30, 2025
Table of Contents
Page

Government-Wide Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ................................................................................................................................................. 17 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position ................................................................................ 18 Statement of Revenues, Expenditures, and Changes in Fund Balances ......................................................... 19 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position .............................................................................. 20 Notes to the Basic Financial Statements .................................................................................................................. 25 Required Supplementary Information (Unaudited):

Budgetary Information ................................................................................................................................... 37 Budgetary Comparison Schedules:

PPFA 2013 Heartland Ranch Revenue Bonds ......................................................................................... 38 PPFA 2023 Authority Bonds ................................................................................................................... 39 Packet Pg. 1156
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2121 North California Blvd., Suite 290
Walnut Creek, California 94596
Independent Auditor’s Report
To the Board of Directors
of the Patterson Public Financing Authority
Patterson, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities and each major fund of the Patterson Public Financing Authority (the “Authority”), a component unit of the City of Patterson, California (the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Packet Pg. 1158
To the Board of Directors
of the Patterson Public Financing Authority
Patterson, California

Page 2 ends

In performing an audit in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, we
 exercise professional judgment and maintain professional skepticism throughout the audit.  identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, no such opinion is expressed.  evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for a reasonable period of time.

Packet Pg. 1159
To the Board of Directors
of the Patterson Public Financing Authority
Patterson, California

Page 3 ends

Walnut Creek, California
February 20, 2026
Packet Pg. 1160
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Packet Pg. 1161
2121 North California Blvd., Suite 290
Walnut Creek, California 94596

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Board of Directors
of the Patterson Public Financing Authority
Patterson, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of the Patterson Public Financing Authority (the “Authority”), a component unit of the City of Patterson, California (the “City”), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise Authority’s basic financial statements, as listed in the table of contents, and have issued our report thereon February 20, 2026.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Authority’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Packet Pg. 1162
To the Board of Directors
of the Patterson Public Financing Authority
Patterson, California

Page 2 ends

Walnut Creek, California
February 20, 2026
Packet Pg. 1163

BASIC FINANCIAL STATEMENTS
7 Packet Pg. 1164
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8 Packet Pg. 1165

GOVERNMENT-WIDE FINANCIAL STATEMENTS
9 Packet Pg. 1166
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10 Packet Pg. 1167
Governmental
Activities
ASSETS
Current assets:

Cash and investments $ 1,340,324
Interest receivable 4,685
Prepaid items 220,364
Total current assets 1,565,373
Noncurrent assets:

Restricted cash and investments 5,797,713
Investments held in trust 53,519,772
Total noncurrent assets 59,317,485
Total assets 60,882,858

LIABILITIES
Current liabilities:

Accrued interest payable 877,720
Due within one year:

Long-term debt 2,679,557
Total current liabilities 3,557,277
Noncurrent liabilities:

Due in more than one year:

Long-term debt 56,323,114
Total noncurrent liabilities 56,323,114
Total liabilities 59,880,391

NET POSITION
Unrestricted 1,002,467
Total net position $ 1,002,467
(A Component Unit of the City of Patterson)
Patterson Public Financing Authority
Statement of Net Position
June 30, 2025
See accompanying Notes to the Basic Financial Statements. 11 Packet Pg. 1168
Net (Expense)
Revenue and
Changes in
Net Position
Governmental
Functions/Programs Expenses Activities
Governmental activities:

Interest and fiscal charges $ (2,507,284) 2,507,284 $
Total governmental activities (2,507,284) 2,507,284
Total primary government $ (2,507,284) 2,507,284
General revenues and contributions:

Intergovernmental revenue 1,368,366
Investment earnings 3,337,586
Capital contributions to the City of Patterson (284,353) Total general revenues and contributions 4,421,599
Change in net position 1,914,315
Net Position (Deficit):

Beginning of year (911,848)
End of year $ 1,002,467
For the Year Ended June 30, 2025
Patterson Public Financing Authority
Statement of Activities
(A Component Unit of the City of Patterson)
See accompanying Notes to the Basic Financial Statements. 12 Packet Pg. 1169

FUND FINANCIAL STATEMENTS
13 Packet Pg. 1170
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14 Packet Pg. 1171

GOVERNMENTAL FUND FINANCIAL STATEMENTS
15 Packet Pg. 1172
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16 Packet Pg. 1173
PPFA 2013 PPFA Total
Heartland Ranch 2023 Authority Governmental
Revenue Bonds Bonds Funds
ASSETS
Cash and investments 539,509 $ 800,815 $ 1,340,324 $
Restricted cash and investments - 5,797,713 5,797,713
Investments held in trust 622,556 52,897,216 53,519,772 Interest receivable 4,523 162 4,685
Prepaid items 220,364 - 220,364
Due from other funds - 191,316 191,316
Total assets $ 59,907,586 1,166,588 $ 61,074,174 $

LIABILITIES AND FUND BALANCES
LIABILITIES:

Due to other funds 191,316 $ - $ 191,316 $
Total liabilities - 191,316 191,316

FUND BALANCES
Nonspendable 220,364 - 220,364
Restricted for debt service 975,272 59,687,222 60,662,494 Total fund balances 59,907,586 975,272 60,882,858
Total liabilities and fund balances $ 59,907,586 1,166,588 $ 61,074,174 $ Patterson Public Financing Authority
Balance Sheet
Governmental Funds
June 30, 2025
(A Component Unit of the City of Patterson)
See accompanying Notes to the Basic Financial Statements. 17 Packet Pg. 1174
Total fund balances of governmental funds $ 60,882,858
Amounts reported for governmental activities in the Statement of Net Position are different because:

Interest payable on long-term debt does not require current financial resources. Therefore, interest payable is not reported as a liability in the Governmental Funds Balance Sheet. (877,720) Long-term liabilities are not due and payable in the current period and therefore are not reported in the Governmental Funds Balance Sheet.

Long-term debt (59,002,671)
Net position (deficit) of governmental activities $ 1,002,467 Patterson Public Financing Authority
Reconciliation of the Governmental Funds
Balance Sheet to the Government-Wide Statement of Net Position June 30, 2025
(A Component Unit of the City of Patterson)
See accompanying Notes to the Basic Financial Statements. 18 Packet Pg. 1175
PPFA 2013 PPFA Total
Heartland Ranch 2023 Authority Governmental
Revenue Bonds Bonds Funds
REVENUES:

Intergovernmental revenue 302,489 $ 1,065,877 $ 1,368,366 $ Interest 3,268,170 69,416 3,337,586
Total revenues 4,334,047 371,905 4,705,952
EXPENDITURES:

Current:

General government - 27,062 27,062
Debt service:

Principal 530,559 1,918,216 2,448,775
Interest and fiscal charges 74,721 2,665,750 2,740,471
Total expenditures 4,611,028 605,280 5,216,308

REVENUES OVER (UNDER)
EXPENDITURES (276,981) (233,375) (510,356)
OTHER FINANCING SOURCES (USES):

Capital contributions to the City of Patterson - (284,353) (284,353) Total financing sources (uses) (284,353) - (284,353)
Net change in fund balances (561,334) (233,375) (794,709) FUND BALANCES:

Beginning of year 1,208,647 60,468,920 61,677,567
End of year $ 59,907,586 975,272 $ 60,882,858 $
Patterson Public Financing Authority
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2025
(A Component Unit of the City of Patterson)
See accompanying Notes to the Basic Financial Statements. 19 Packet Pg. 1176
Net change in fund balances - total governmental funds: $ (794,709) Amounts reported for governmental activities in the Statement of Activities are different because:

Repayment of long-term liabilities was an expenditures in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position Principal payment of long-term debt 2,448,775
Amortization of bond premium 220,595
Interest expenses on long-term debt was reported in the Government-Wide Statement of Activities, but it did not require the use of current financial resources. This amount represented the changes in accrued interest from prior year 39,654 Change in net position of governmental activities $ 1,914,315 Patterson Public Financing Authority
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the Year Ended June 30, 2025
(A Component Unit of the City of Patterson)
See accompanying Notes to the Basic Financial Statements. 20 Packet Pg. 1177
21 NOTES TO THE BASIC FINANCIAL STATEMENTS
Packet Pg. 1178
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Packet Pg. 1179
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
23 Note 1 – Summary of Significant Accounting Policies .............................................................................................. 25 A. Financial Reporting Entity .......................................................................................................................... 25 B. Basis of Accounting and Measurement Focus ............................................................................................ 25 C. Cash and Investments ................................................................................................................................. 26 D. Restricted Cash and Investments ................................................................................................................ 27 E. Long-Term Debt ......................................................................................................................................... 27 F. Net Position ................................................................................................................................................ 27 G. Fund Balances ............................................................................................................................................. 28 H. Use of Estimates ......................................................................................................................................... 28 Note 2 – Cash and Investments ................................................................................................................................... 28 A. Cash Deposits ............................................................................................................................................. 29 B. Investments ................................................................................................................................................. 30 C. Risk Disclosures ......................................................................................................................................... 31 Note 3 – Interfund Transactions ................................................................................................................................. 32 A. Due From and To Other Funds ................................................................................................................... 32 Note 4 – Capital Contributions to the City of Patterson ........................................................................................... 32 Note 5 – Long-Term Obligations................................................................................................................................. 32 A. Governmental Activities ............................................................................................................................. 32 Packet Pg. 1180
24 This page intentionally left blank.

Packet Pg. 1181
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Notes to the Basic Financial Statements
For the Year Ended June 30, 2025
25 Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the Patterson Public Financing Authority (the “Authority” or “PPFA”), a component unit of the City of Patterson, California (the “City”), have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the Authority’s accounting policies are described below.

A. Financial Reporting Entity
The Authority was formed in 2001 pursuant to a joint exercise of powers agreement between the City and the former Redevelopment Agency of the City. The Authority is authorized to borrow money for the purpose of financing the acquisition of bonds, notes, and other obligations of, or for the purpose of making loans to, public entities, including the Authority and to provide financing for public capital improvements for lease to public entities, including the Authority. The members of the City Council also sit as the Board of Directors of the Authority.

Government–Wide Financial Statements
The Authority’s government-wide financial statements include a statement of net position and a statement of activities. These statements present summaries of governmental activities for the Authority.

Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated. The following interfund activities have been eliminated:
 Due from and to other funds
Packet Pg. 1182
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
26 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and a statement of revenues, expenditures and changes in fund balances for all major governmental funds. An accompanying schedule is presented to reconcile and explain the differences in net position as presented in these statements to the net position presented in the government-wide financial statements. The Authority has presented all major funds that met the applicable criteria.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

The primary revenue sources, which have been treated as susceptible to accrual by the Authority is interest income. Certain indirect costs are included in program expenses reported for individual functions and activities.

Expenditures are recorded in the accounting period in which the related fund liability is incurred.

The reconciliation of the fund financial statements to the government-wide financial statements is provided to explain the differences.

Governmental funds of the Authority are outlined below:

PPFA 2013 Heartland Ranch Revenue Bonds – This debt service fund is used to account for the debt service payments, investment income, and projects related to the 2013 Heartland Ranch Revenue Bonds (“HR”).

PPFA 2023 Authority Bonds – This debt service fund is used to account for the debt service payments, investment income, and projects related to the 2023 Authority Bonds.

C. Cash and Investments
The Authority’s cash and investments considered to be cash equivalents, consist of cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and reported as cash and investments. The Authority's cash and investments are held by the City in its pooled cash and investments, except for funds required to be held by fiscal agents under the provisions of bond indentures.

Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available.

Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.

Packet Pg. 1183
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
27 Note 1 – Summary of Significant Accounting Policies (Continued) C. Cash and Investments (Continued)
U.S. GAAP defines fair value, establishes a framework for measuring fair value and establishes disclosures about fair value measurement. Investments, unless otherwise specified, recorded at fair value in the Statements of Net Position, are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Levels of inputs are as follows:

Level 1 – Inputs are unadjusted, quoted prices for identical assets and liabilities in active markets at the measurement date.

Level 2 – Inputs other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.

Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

D. Restricted Cash and Investments
Certain restricted cash and investments are held by a fiscal agent for the redemption of bonded debt and for acquisition and construction of capital projects.

E. Long-Term Debt
In the government-wide financial statements, long-term liabilities and other long-term obligations are reported as liabilities in the applicable governmental activities Statement of Net Position. Initial issue bond premiums and discounts, are deferred and amortized over the life of the bonds using the straight-line method. The difference between the reacquisition price of refunding bonds and the net carrying amount of refunded debt (deferred amount on refunding) is amortized over the shorter of the lives of the refunding debt or remaining life of the refunded debt.

F. Net Position
For government-wide financial statements, net position is categorized as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation and amortization, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets. There is no net investment in capital assets as of June 30, 2025.

Restricted – This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. There is no restricted net position as of June 30, 2025.

Packet Pg. 1184
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
28 Note 1 – Summary of Significant Accounting Policies (Continued) F. Net Position (Continued)
Unrestricted – This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

When expenses are incurred for purposes for which both restricted and unrestricted net position is available, the Authority’s policy is to apply restricted net position first.

G. Fund Balances
For the Authority’s fund financial statements, fund balances are categorized as follows:

Nonspendable – Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories and long term receivables, or items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.

Restricted – Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.

When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned.

H. Use of Estimates
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosure. Accordingly, actual results could differ from those estimates.

Note 2 – Cash and Investments
The following is a summary of pooled cash and investments and restricted cash and investments at June 30, 2025:

Cash and investments 1,340,324 $
Restricted cash and investments 5,797,713
Investments held in trust 53,519,772
Total cash and investments $ 60,657,809
Investments consisted of the following at June 30, 2025:

Investments:

Local obligation bonds 53,519,772 $
Money market mutual funds 5,797,713
Total investments $ 59,317,485
Packet Pg. 1185
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
29 Note 2 – Cash and Investments (Continued)
At June 30, 2025, investments, are reported at fair value based on quoted market prices. The following table represents the fair value measurements of investments recognized in the accompanying Statement of Net Position measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2025:

Measurement
Fair Value Input
Investments:

Local obligation bonds 53,519,772 $ Level 2
Money market mutual funds 5,797,713 Uncategorized
Total investments $ 59,317,485
Valuation
Technique
Future Cash Flows
Not applicable
Present Value of Expected
A. Cash Deposits
The carrying amounts of the Authority’s pooled cash and investment with the City was $0 at June 30, 2025. The Authority pools its cash and investments of all funds with the City of Patterson, California to facilitate the management of cash and achieve the goal of obtaining the highest yield with the greatest safety and least risk. The pool is managed by the City Treasurer for investing, except for certain restricted funds and investments held in trust, which are held and invested by outside custodians through contractual agreements. These restricted funds include cash with fiscal agents. The total amount of which was collateralized or insured with securities held by the pledging financial institutions in the City’s name is discussed below.

Packet Pg. 1186
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
30 Note 2 – Cash and Investments (Continued)
B. Investments
Investments Authorized by the California Code and the Authority’s Investments Policy The table below identifies the investment types that are authorized by the Authority's investment policy. This table does not address investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the Authority, rather than the general provisions of the California Government Code or the Authority's investment policy.

Maximum Maximum
Maximum Percentage of Investment in
Maturity Portfolio one Issuer
U.S. Treasury Obligation 5 years None None
U.S. Agency Securities 5 years None None
Certificates of Deposit 2 years None None
Local Agency Investment Fund (LAIF) None None None
Money Market Funds None None None
Annuities None None None
Mutual Funds None 5% None
Corporate Notes (Minimum rating of "AAA") 5 years 5% None Local Agency Bonds (Local obligation bonds) 5 years None None Authorized Investment Type
Packet Pg. 1187
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
31 Note 2 – Cash and Investments (Continued)
C. Risk Disclosures
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Authority's interest rate risk is mitigated is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Local obligation bonds 53,519,772 $ 14,508 $ - $ - $ 53,505,264 $ Money market mutual funds 5,797,713 5,797,713 - - -
Total investments $ 5,812,221 59,317,485 $ - $ - $ 53,505,264 $ Maturity
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or debt agreements, and the actual rating as of the fiscal year for each investment type.

Minimum
Legal
Fair Value Rating S&P Moody's
Investments:

Local obligation bonds 53,519,772 $ N/A Not rated Not rated Money market mutual funds 5,797,713 N/A AAAm Aaa-mf
Total investments $ 59,317,485
Credit Rating
Disclosures Relating to Concentration of Credit Risk
The Authority held the following investments in a single issuer (other than U.S. Treasury securities, external investment pools and mutual funds) that represented 5% or more of total Authority investment as of June 30, 2025:

Issuer Amount
West Patterson Financing Authority 53,519,772 $
Investment Type
Local obligation bonds
Packet Pg. 1188
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
32 Note 2 – Cash and Investments (Continued)
C. Risk Disclosures (Continued)
Disclosures Relating to Custodial Credit Risk
The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. brokerdealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. None of the Authority’s investments was subject to custodial credit risk.

Note 3 – Interfund Transactions
A. Due From and To Other Funds
At June 30, 2025, the PPFA 2013 Heartland Ranch Revenue Bonds Fund owes the PPFA 2023 Authority Bonds Fund in the amount of $191,316 to cover the restricted cash overdrawn.

Note 4 – Capital Contributions to the City of Patterson For the year ended June 30, 2025, the Authority contributed bond proceeds in the amount of $284,353 to the City for funding the Public Safety Center.

Note 5 – Long-Term Debt
A. Governmental Activities
Summary of changes in long-term liabilities for the governmental activities for the year ended June 30, 2025 is as follows:

Original Balance Balance Due Within Due In More
Issuance July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Private Placement:

PPFA 2013 Heartland Ranch Revenue Bonds 4,963,568 $ 914,788 $ - $ (273,775) $ 641,013 $ 284,557 $ 356,456 $ PPFA 2023 Series A Revenue Bonds 54,370,000 54,360,000 - (2,175,000) 52,185,000 2,395,000 49,790,000 Plus: Bond Premium 6,617,848 6,397,253 - (220,595) 6,176,658 - 6,176,658 Total long-term debt $ 61,672,041 65,951,416 $ - $ (2,669,370) $ 59,002,671 $ 2,679,557 $ 56,323,114 $ 2013 Heartland Ranch Revenue Bonds
On July 30, 2013, the Authority issued $4,963,568 of revenue refunding bonds (Series 2013 Heartland Ranch Revenue Bonds) to repay, in part, the principal of the Authority's 2002 Heartland Ranch Revenue Bonds. Interest on the bonds is payable semi-annually on March 2 and September 2 of each year through September 2, 2027, beginning on March 2, 2014. The interest rate on the bonds is 3.73 percent. Principal payments are due annually beginning on September 2, 2014. At June 30, 2025, the outstanding balance of the 2013 Heartland Ranch Revenue bonds was $641,013.

Packet Pg. 1189
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2025
33 Note 5 – Long-Term Debt (Continued)
A. Governmental Activities (Continued)
2013 Heartland Ranch Revenue Bonds (Continued)
The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 284,557 $ 18,603 $ 303,160 $
2027 174,771 10,036 184,807
2028 181,685 3,388 185,073
Total 641,013 $ 32,027 $ 673,040 $
PPFA 2023 Series A Special Tax Revenue Refunding Bonds
On August 1, 2023, the Patterson Public Financing Authority issued $54,370,000 of special tax revenue refunding bonds (Series 2023 A) to refund the 2013 PPFA Series A Bonds and the 2013 PPFA Series B Bonds which had outstanding balances of $53,265,000 and $5,235,000, respectively. The bonds were sold with a net original issue premium of $6,617,848 and costs of issuance of $1,029,942 (including the underwriter’s discount, the fee for bond insurance and a surety fee for the reserve fund).

Interest on the bonds is payable semi-annually on March 1 and September 1 of each year through September 1, 2024, beginning on March 1, 2024. The interest rates on the bonds range from 2.790 to 3.890 percent.

Principal payments are due annually beginning on September 1, 2024. The bonds are secured by a first pledge of the investment revenues and funds on deposit in the Bond Fund, Reserve Fund, and Special Tax Fund. At June 30, 2025, the outstanding balance of the PPFA 2023 Series A Special Tax Revenue Refunding Bonds was $52,185,000.

The annual debt service requirements are as follows:

Year Ending
June 30, Principal Interest Total
2026 2,395,000 $ 2,549,375 $ 4,944,375 $
2027 2,550,000 2,425,750 4,975,750
2028 2,680,000 2,295,000 4,975,000
2029 2,810,000 2,157,750 4,967,750
2030 2,945,000 2,013,875 4,958,875
2031-2035 16,635,000 7,654,375 24,289,375
2036-2040 22,170,000 2,927,250 25,097,250
Total 52,185,000 $ 22,023,375 $ 74,208,375 $
Packet Pg. 1190
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Packet Pg. 1191
35 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED)
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Packet Pg. 1193
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Required Supplementary Information (Unaudited)
For the Year Ended June 30, 2025
37 Budgetary Information
The Authority maintains budgetary controls in order to ensure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. The Authority maintains an encumbrance accounting system to provide management with information regarding obligations against appropriations. Budgetary compliance is based on expenditures during the period (U.S. GAAP), rather than expenditures and encumbrances (non-GAAP).

The following procedures are performed by the Authority in establishing the budgetary data reflected in the financial statements:

2. Public hearings are conducted to obtain taxpayers' comments.

4. The budget is legally adopted through the passage of a council resolution.

6. A budget review is presented to the City Council by the City Manager mid-year and approved additions or changes are legally adopted through Council resolution.

7. Formal budgetary integration is employed as a management control device during the year for the funds.

8. Budgets for the funds are adopted on a basis consistent with United States generally accepted accounting principles.

Packet Pg. 1194
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Required Supplementary Information (Unaudited) (Continued) For the Year Ended June 30, 2025
38 Budgetary Comparison Schedule – PPFA 2013 Heartland Ranch Revenue Bonds Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental revenue 513,864 $ 302,489 $ 302,489 $ - $ Interest 12,962 12,962 69,416 56,454
Total revenues 315,451 526,826 371,905 56,454
EXPENDITURES:

Debt service:

Principal 530,559 530,559 530,559 -
Interest and fiscal charges 74,721 74,721 74,721 -
Total expenditures 605,280 605,280 605,280 -
Net change in fund balance $ (289,829) (78,454) $ (233,375) 56,454 $ FUND BALANCE:

Beginning of year 1,208,647
End of year $ 975,272
Budgeted Amounts
Packet Pg. 1195
Patterson Public Financing Authority
(A Component Unit of the City of Patterson)
Required Supplementary Information (Unaudited) (Continued) For the Year Ended June 30, 2025
39 Budgetary Comparison Schedule – PPFA 2023 Authority Bonds Variance with
Final Budget
Favorable
Original Final Actual (Unfavorable)
REVENUES:

Intergovernmental revenue 1,065,877 $ 1,065,877 $ 1,065,877 $ - $ Interest 3,532,671 3,652,570 3,268,170 (384,400)
Total revenues 4,718,447 4,598,548 4,334,047 (384,400)
EXPENDITURES:

Current:

General government - - 27,062 (27,062)
Debt service:

Principal 2,110,000 2,110,000 1,918,216 191,784
Interest and fiscal charges 2,904,988 2,904,988 2,665,750 239,238 Total expenditures 5,014,988 5,014,988 4,611,028 403,960

REVENUES OVER (UNDER)
EXPENDITURES (296,541) (416,440) (276,981) 19,560
OTHER FINANCING SOURCES (USES):

Capital contributions to the City of Patterson - (154,842) (284,353) (129,511) Total other financing sources (uses) (154,842) - (284,353) (129,511) Net change in fund balance $ (451,383) (416,440) $ (561,334) (109,951) $ FUND BALANCE:

Beginning of year 60,468,920
End of year $ 59,907,586
Budgeted Amounts
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CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Tiffany Rodriguez, Director of Engineering Services MEETING DATE: May 19, 2026
ITEM NO:

SUBJECT:

7.4 Review of projects qualified to receive funding through the Special Tax Revenue Refunding Bonds, Series 2023; request direction from City Council on prioritization of eligible projects.

RECOMMENDATION
Review of projects qualified to receive funding through the Special Tax Revenue Refunding Bonds, Series 2023; request direction from City Council on prioritization of eligible projects.

BACKGROUND
On August 16, 2023, the Patterson Public Financing Authority issued tax-exempt Special Tax Revenue Refunding Bonds, Series 2023, in the aggregate principal amount of $54,370,000 to refund the Authority’s outstanding 2013 Series Special Tax Bonds. The Series 2023 Bonds were sold at a premium of $6,617,848.20, and an additional $5,059,692.06 of funds remained available from the 2013 Series Bonds. Together, these amounts resulted in total sources of funds of $66,047,540.26.

Of the total funds available, $60,017,597.94 was deposited into an escrow to defease and redeem the 2013 Series Bonds, $5,000,000 was deposited into a Project Fund for future capital improvements, and $1,029,942.32 was used to pay costs of issuance, including underwriting discount and other issuance-related expenses.

The $5,000,000 Project Fund is restricted for use solely on eligible capital projects authorized under the West Patterson Financing Authority’s Community Facilities District No. 2001-1 (CFD 2001-1). These funds were originally designated for construction of the Public Safety Center adjacent to City Hall. However, that project has experienced significant delays. Absent the reallocation of these funds to other eligible capital projects, the City may be unable to satisfy the IRS three-year spending safe harbor applicable to tax-exempt bonds, which generally requires that at least 85% of net bond proceeds be expended within three years.

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ANALYSIS
The Project Fund associated with the Special Tax Revenue Refunding Bonds, Series 2023 was originally earmarked for the demolition of the former Sheriff’s Office, which is the future site of the City’s planned Public Safety Center. Due to delays associated with the timing and overall development of the Public Safety Center, staff does not anticipate being able to fully expend the available project funds within the remaining timeframe necessary to comply with Internal Revenue Service (IRS) tax-exempt bond spending requirements.

Under IRS regulations, tax-exempt bond proceeds are generally subject to a three-year spending safe harbor, which requires that a substantial portion of the proceeds be expended within three years of issuance to preserve the tax-exempt status of the bonds. As of the date of this staff report, approximately $5.5 million remains unspent and must be allocated to eligible capital projects in order to mitigate the risk of noncompliance with these requirements.

Accordingly, staff is presenting a list of alternative, eligible capital projects for Council’s consideration and is requesting direction on which project or combination of projects should be prioritized for funding. Council direction is necessary to allow staff to move forward expeditiously with project scoping, contracting, and implementation in order to ensure that the available bond proceeds are allocated to qualifying uses within the required timeframe.

PROPOSED PROJECTS
*** Project Name Estimate
1 Demo & Land Acquisition $2,800,000
2 Recreation Operational Facility $1,000,000*
3 Sports Park Parking Lot $1,000,000
4 Land Acquisition – Las Palmas TBD
5 WQCF Collections Modular $280,000
6 Mobile Lifts $120,000
7 Enclose Fleet Shop $350,000
8 Land Acquisition – B Street TBD
9 Centennial Park – Phase I $3,800,000
10 Land Acquisition/Modular – First Street TBD
Proposed Projects Total $9,350,000**
Bond Funds Available $5,554,304
Difference -$3,805,696
*Will require additional funds from Community Center/Senior Center Impact Fees and Aquatic Center Impact Fees. **Does not include land acquisition costs, due to ongoing negotiation process.

Once the projects have been prioritized, staff will work to bring individual projects back to Council for acceptance at a later time. ***Projects are not listed in any particular order.

FISCAL IMPACT
No immediate fiscal impact will occur as a result of this presentation. Council direction on project prioritization will allow staff to move forward with the allocation of available bond proceeds to an alternative, eligible project or combination of projects, thereby mitigating the risk of noncompliance with IRS three-year spending safe harbor requirements.

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SPECIAL TAX REVENUE BONDS, SERIES 2023
PROPOSED PROJECTS
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Introduction
Special Tax Revenue Refunding Bond, Series 2023
• Patterson Public Financing Authority
• Secured by special taxes levied in CFD 2001-1
• Tax-exempt bond issued August 16, 2023
• Three-year spending safe harbor rules
$5,544,304 available for Capital Improvements
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BOND PROCEEDS – AUTHORIZED FACILITIES
Authorized Facilities are governed by CFD 2001-1 and include:
(Each category has additional stipulations)
• West Area Fire Station
• School Facilities
• Community Facilities
• Water, Sewer, and Drainage Facility
Oversizing
• Street Improvements
• Infrastructure Plan
• Fire Facilities
• Water Well Test Drilling and Site
Acquisition
• Zone I Water System
• Zone II Water System
• Sewer Collection System
• Northeast Storm Drain
• Phase 2 Wastewater Treatment
Plan
• Sperry Ave, Baldwin Rd, and Ward
Ave Street Improvements
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Bond Proceeds - Proposed Projects

1. Demo & Land Acquisition - Old Sheriff Building

2. Sports Park Parking Lot

3. Land Acquisition - Las Palmas

4. WQCF Collections Modular

5. Mobile Lifts

6. Enclose Fleet Shop - Corporation Yard Fleet Shop Expansion

7. Land Acquisition - B Street

8. Modular Additions - Community Center

9. Centennial Park

10. Land Acquisition/Modular – First Street
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Proposed Project: Demo & Land Acquisition
Why Action is Needed
• Vacant building = public safety concern
• Unsafe to occupy
Current Conditions
• Hazardous materials have been identified
• Continued deterioration = increased liability
Future Opportunity
• Prepare site for future civic/public use
• Flexibility for future City plans
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Proposed Project: Sports Park Parking Lot
Why Action is Needed
• Lack of Parking Spaces at this
complex
Proposed Improvements
• Add additional Parking spaces
Benefits
• Adequate on-site parking reduces
illegal parking and unsafe
pedestrian crossings, while
maintaining clear access
for emergency vehicles.

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Proposed Project: Land Acquisition – Las Palmas
Why Action is Needed
• City Hall and existing facilities are nearing operational capacity • Continued city growth has increased space needs for staff and services Current Opportunity
• Acquire centrally located property
• Property owners have indicated a willingness to sell
Benefits
• Strategic property acquisition in an established area of the community • Site supports future civic, community service, administrative, or publicfacing uses Packet Pg. 1206
Proposed Project: WQCF Collections Modular
Why Action is Needed
• Nearing capacity
• Upcoming service expansions
• Offices, break space, and support area needs
Current Opportunity
• Already in place and operational
• Currently paying lease costs
• Reduce ongoing costs and provide credit
Benefits
• Immediate space for staff
• Avoid delays from new construction or procurement
• Cost-effective
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Proposed Project: Mobile Lifts
Why Action is Needed
• Fixed lifts occupy shop space
• Reduced number of vehicles serviced at one time
• Impacts workflow and productivity
Proposed Improvements
• Mobile lifts for flexible use
• Moved and stored when not in use
• Supports wider range of vehicles and equipment
Benefits
• Increased service capacity
• Improved efficiency, without expansion
• Cost-effective
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Corporation Yard Fleet Shop Expansion
Why Action is Needed
• Outgrown current shop capacity
• Repair delays and operational bottlenecks
Current Impacts
• Delays affect emergency response equipment
• Deferred preventative maintenance
• Increase long-term costs and equipment downtime
Future Opportunity
• Improve workflow and safety
• More efficient, organized, and reliable fleet
operation
Proposed Project: Enclose Fleet Shop
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Proposed Project: Land Acquisition – B Street
Why Action is Needed
• Corporation Yard nearing capacity
• City growth = increased staffing, equipment,
and storage needs
• Support future operations
Benefits
• Parcel adjacent to Corporation Yard 1
• Rare opportunity to expand
• Cost-effective expansion due to location
• Supports future buildings, staff, and longterm growth Packet Pg. 1210
Proposed Project: Recreation Operational Facility
Why Action is Needed
• Recreation staff in 3 separate trailers
• Lack restrooms and running water
• Fragmented workspace
Proposed Solution
• Modular Recreation Operations Facility
• Consolidate staff in one location
• Include restrooms, meeting space, and training space
Benefits
• Improve efficiency, communication, and teamwork
• Provide basic amenities
• Faster and more cost-effective than permanent building Packet Pg. 1211
Why Action is Needed
• Park is a long-term priority
• Full buildout is not currently financially feasible
• Phase I – improvements now
Phase I Improvements
• Pickleball and tennis courts
• Parking lot and related improvements
Future Opportunity
• Establishes foundation for larger park
• Future phases: playgrounds, landscaping,
community center, amphitheater
Proposed Project: Centennial Park
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Proposed Project: Land Acquisition/Modular – First St.

Why Action is Needed
• Property currently houses Police Service operations
• City has invested modular facilities on the site
• Ownership could provide long-term operational stability Benefits
• Acquisition preserves the City’s investment in the modular building • Avoids future uncertainty associated with leased property Future Opportunity
• Site can continue service public safety needs until a permanent station is developed
• Property could later support future City administrative/annex functions • Provides long-term flexibility for future municipal operations Packet Pg. 1213
Potential Bond Funded Projects Proposed Projects: Estimated Costs Project Name Estimate
1 Demo & Land Acquisition $2,800,000
2 Sports Park Parking Lot $1,000,000
3 Land Acquisition – Las Palmas TBD
4 WQCF Collections Modular $280,000
5 Mobile Lifts $120,000
6 Enclose Fleet Shop $350,000
7 Land Acquisition – B Street TBD
8 Recreation Operational Facility $1,000,000*
9 Centennial Park – Phase I $3,800,000
10 Land Acquisition/Modular – First Street TBD
Proposed Projects Total $9,350,000**
Bond Funds Available $5,544,304
Difference -$3,805,696
*Will require additional funds from Community Center/Senior Center Impact Fees and Aquatic Center Impact Fees **Does not include land acquisition costs, due to ongoing negotiation process.

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Council Direction Requested
Proposed Direction
• Provide feedback and direction regarding priority projects for available bond funds
Next Steps
• Staff will proceed with implementation planning for Council-selected projects • Staff will return, as needed, with project-specific agreements and/or procurement items.

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QUESTIONS?
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A-1

APPENDIX A

AUTHORIZED FACILITIES AND THE RATE AND METHOD

DESCRIPTION OF FACILITIES ELIGIBLE TO BE FINANCED BY THE DISTRICT It is intended that the District will finance all or a portion of the costs of the following:

1. Water Well Test Drilling and Site Acquisition
The drilling of test wells and provision of monitoring equipment at sites along east of Highway 33 in the unincorporated area of the County, to determine water quality and quantity to serve development projects within and in the vicinity of the District, and the acquisition of various well sites.

2. Zone 1 Water System
Construction of water wells east of Highway 33 in the vicinity of Orange Avenue, water storage tanks, water booster stations and new distribution lines to connect to existing City systems.

3. Sewer Collection System
Construction of sewer lines, including those connecting the developments within and in the vicinity of the District, to the City’s wastewater treatment plant. The line segments include a line starting at Salado Creek running east to Ward Avenue, then east to Highway 33 and continuing on Walnut Avenue running east to Poplar Avenue. The foregoing construction may be funded by the District directly, or by reimbursement to the Western Hills Water District (the “Water District”) or other entity that provides funds for such construction (the Funding Source”) if the facilities are financed with funds provided by the Funding Source but the Water District is unable to connect to the City’s sewer collection system. If the sewer collection system is financed with funds provided by the Funding Source and the Water District is able to connect to the City’s sewer collection system, the District will not fund these facilities but the Phase 2 Wastewater Treatment Plant will be expanded as described in item 5 below.

4. Northeast Storm Drain
Construction of a major storm drain line connecting the drainage facility at Highway 33 and M Street running east to Sycamore Avenue and north to a new drainage detention facility to be acquired, construction of this new drainage facility including pump station and force main and construction of a line from this new drainage detention facility to Salado Creek pipeline.

5. Phase 2 Wastewater Treatment Plant
Acquisition of 80 acres or sufficient acreage adjacent to or in the vicinity of the City’s existing wastewater treatment plant, to be used for wastewater disposal, and construction of a

0.5 MGD Advanced Integrated Wastewater Pond System (AIPS) or similar system, at the City’s existing wastewater treatment plant.

Notwithstanding the foregoing, in the event that the Sewer Collection System is financed with funds provided by the Funding Source as described in item 3 above, and the Water District is able to connect to the City’s sewer collection system such that the District is Packet Pg. 1217
A-2
not obligated to reimburse the Funding Source for the costs of construction of the Sewer Collection System, the Phase 2 Wastewater Treatment Plant will be increased in size and scope to include the acquisition of 120 acres or sufficient acreage adjacent to or in the vicinity of the City’s existing wastewater treatment plant, to be used for wastewater disposal, and construction of a 1.25 MGD Advanced Integrated Wastewater Pond System (AIPS) or similar systems at the City’s existing wastewater treatment plant, with up to forty percent (40%) of the cost of the expanded project to be funded by the Water District or another Funding Source.

6. Sperry Avenue, Baldwin Road and Ward Avenue Street Improvements Construction of Sperry Avenue to its ultimate right of way between Ward Avenue and Baldwin Road, Baldwin Road to its ultimate right of way from approximately 5,800 feet north of Sperry Avenue to approximately 2,000 feet south of Sperry Avenue, Ward Avenue to its ultimate right of way from Sperry Avenue to the southern end of Patterson sports park.

Construction may include streets, pipelines, traffic signals, undergrounding and/or relocation of utilities, medians, landscaping, sidewalks, curbs and gutters.

7. West Area Fire Station
Construction of a fire station in the vicinity of Sperry Avenue and Baldwin Road, within or in the vicinity of the District, along with the acquisition of fire apparatus including but not limited to a fire engine.

8. School Facilities
Acquisition, construction and equipping of elementary, middle and high school facilities (and related school district support facilities) which serve all or any portion of the student population residing and expected by the Patterson Unified School District (the “PUSD”) to reside in the District, including reimbursement for financing costs, costs of carry or other amounts incurred or expended pending funding by the District, consistent with Section 2 of the Joint Community Facilities Agreement – School Facilities, among the District, the PUSD, the Authority and the City of Patterson, as such agreement is originally executed and as it may thereafter be amended in accordance with its terms and incident to any annexation of property to the District.

9. Community Facilities
Acquisition, construction and equipping of a City hall, police facility, community center (including an aquatic center, gymnasium and senior center), and a corporation yard, and additions to the existing City sports park.

11. Water, Sewer and Drainage Facility Oversizing
Costs related to the oversizing of water, sewer and drainage pipelines constructed within the residential developments in the District to accommodate development of the project commonly known as the West Patterson Business Park.

11. Street Improvements
Construction of roadway and landscaped median improvements in Sperry Avenue between Ward Avenue and Salado Creek Bridge, the construction of the Salado Creek Bridge widening, and the construction of street improvements on American Eagle connecting to the Ward Avenue/M Street intersection from the west boundary of the Heartland Ranch subdivision.

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A-3

12. Infrastructure Plan
Preparation of master infrastructure plan for public infrastructure to serve properties within and adjacent to the District, including fire master plan.

13. Zone II Water System
Water distribution system for area commonly known as Patterson Gardens, including water wells, associated water tanks, pipelines and booster stations. Construction of an alternate water supply and distribution system should the Zone II Water System prove infeasible or impractical. Such alternative water supply system to include pipelines, distribution, tanks, water treatment, facilities and other facilities needed to operate a surface water supply system or other alternate water supply system.

14. Fire Facilities
Construction of a fire station east of Highway 33, within or in the vicinity of the District, and/or the acquisition of sufficient fire apparatus to be stationed in an existing fire station capable of serving the portion of the District east of Highway 33.

The public improvements shall include the acquisition of right of way and land, the costs of design, engineering and planning, the costs of any environmental or traffic studies, surveys or other reports, landscaping and irrigation, utility undergrounding, soils testing, permits, plan check and inspection fees, insurance, legal and related overhead costs, coordination and supervision and any other costs or appurtenances related to any of the foregoing.

OTHER
The District may also finance or pay from special taxes any of the following:

1. Bond related expenses, including underwriters discount, reserve fund, capitalized interest, bond and disclosure counsel and all other incidental expenses.

2. Administrative fees of the Authority, the City of Patterson, the Patterson Unified School District and the Bond trustee or fiscal agent related to the District and the Bonds.

3. Reimbursement of costs related to the formation of the District advanced by the Authority, the City of Patterson, the Patterson Unified School District or any entity related to any of the foregoing, or any landowner or developer within the District, as well as reimbursement of any costs advanced by the Authority, the City of Patterson, the Patterson Unified School District or any entity related to any of the foregoing, or any landowner or developer within the District, for facilities, fees or other purposes or costs of the District.

4. Any obligations of the District to the Patterson Unified School District not satisfied from the proceeds of Bonds issued by the District.

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CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Fernando Ulloa, City Manager
MEETING DATE: May 19, 2026
ITEM NO: 8.1
SUBJECT: Authorize staff to prepare and release a Request for Proposals (RFP) for a feasibility study evaluating the potential transition from contract City Attorney services in an in-house City Attorney model.

RECOMMENDATION
Motion to Authorize staff to prepare and release a Request for Proposals (RFP) for a feasibility study evaluating the potential transition from contract City Attorney services in an in-house City Attorney model.

BACKGROUND
The city currently contracts for City Attorney services. As part of ongoing organizational and operational discussions, the City Council expressed interest in evaluating the feasibility of transitioning from a contract legal services model to an in-house City Attorney office structure.

In response, staff conducted preliminary research regarding how comparable cities structure their legal services operations, including staffing configurations, salary ranges, historical legal expenditures, and operational considerations associated with establishing an in-house legal department.

The preliminary review identified that transitioning legal services in-house would involve not only personnel costs, but also additional operational and support costs such as professional memberships, legal research subscriptions, software systems, office setup, training, and continued use of outside counsel for specialized legal matters.

Given the complexity and long-term financial implications associated with establishing an inhouse legal office, staff is seeking authorization to prepare and release a Request for Proposals (RFP) for an independent feasibility study.

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ANALYSIS
The proposed feasibility study would provide the City Council with a comprehensive and independent evaluation of the operational, organizational, and financial considerations associated with transitioning from contract legal services to an in-house City Attorney model.

The intent of the study is to provide the City Council with objective information to evaluate whether an in-house City Attorney structure is operationally and financially appropriate for the city.

Staff anticipates issuing the RFP to firms with experience conducting organizational, operational, and financial analyses for California local agencies. Following completion of the RFP process, staff will return to City Council with a recommendation for consultant selection and contract award.

FISCAL IMPACT
Staff recommends including $75,000 in the FY 2026/27 budget to fund the feasibility study.

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CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Bryan Stice, Community Development Director
MEETING DATE: May 19, 2026
ITEM NO: 8.2
Adopt Resolution No. 2026-29 approving the adoption of General Plan Land Use Amendments to implement the 2023-2031 6th Cycle Housing Element.

Approve First Reading and Introduction of Ordinance No. 886 Reading by Title only, Waiving Further Reading, an ordinance of the City Council of the City of Patterson approving the zoning map amendments for specified sites consistent with Housing Element Program 1.1.

RECOMMENDATION
Motion to Adopt Resolution No. 2026-29 approving the adoption of General Plan Land Use Amendments to implement the 2023-2031 6th Cycle Housing Element.

Motion to Approve First Reading and Introduction of Ordinance No. 886 Reading by Title only, Waiving Further Reading, an ordinance of the City Council of the City of Patterson approving the zoning map amendments for specified sites consistent with Housing Element Program 1.1.

SUMMARY
On April 23, 2026, the City of Patterson Planning Commission approved Resolution 2026-03 recommending the City Council 1) approve the proposed General Plan land use amendments and zoning map amendments to implement the 2023-2031 6th Cycle Housing Element Program 1.11, 2) make a finding that the project is exempt from CEQA, and 3) authorize staff to file a Notice of Exemption with the Stanislaus County Clerk and State Clearinghouse.

BACKGROUND
The City of Patterson prepared the 2023–2031 6th Cycle Housing Element to address its Regional Housing Needs Allocation (RHNA) of 3,716 units, as well as an additional 196 lower-income Packet Pg. 1222
units carried over from the prior planning cycle, for a total housing need of 3,912 units.

On December 2, 2025, the California Department of Housing and Community Development (HCD) issued a letter finding the City’s Housing Element to be in substantial compliance with State Housing Element law, contingent upon completion of required rezonings to make identified shortfall sites available for residential development.

Program 1.11 of the Housing Element requires the City to complete General Plan land use and zoning map amendments to ensure that adequate sites are available at appropriate densities to accommodate the City’s RHNA, including lower-income housing. Pursuant to Government Code Sections 65583 and 65583.2, jurisdictions that did not adopt a compliant Housing Element within 120 days of the statutory deadline must complete required rezoning within one year of the deadline, which for the City was December 31, 2023.

Additionally, Program 1.12 of the Housing Element requires the City to implement by-right development provisions for sites that were identified in a prior Housing Element for which the City must demonstrate continued suitability and availability for residential development at appropriate densities.

This item implements Program 1.11 and Program 1.12 through targeted land use and zoning map amendments for identified shortfall sites and required by-right development provisions.

PROJECT DESCRIPTION
The proposed project consists of General Plan land use redesignations and zoning map amendments for sites identified in Housing Element Program 1.11 to facilitate higher-density residential and mixed-use development, as well as by-right development provisions as required by Program 1.12.

The amendments include:
 Redesignation of select commercially designated sites to High-Density Residential (HR) and Downtown Core (DC);
 Application of mixed-use overlay zoning to specific sites to allow residential development on commercially designated sites; and
 Establishing by-right development provisions for both shortfall sites and prior identified sites identified in the proposed ordinance.

The subject sites are included in the Housing Element sites inventory and, upon redesignation and rezoning, will be available for residential development at densities sufficient to accommodate lower- and moderate-income housing consistent with State law. The proposed amendments do not approve any specific development project.

SITE-SPECIFIC AMENDMENTS
The proposed amendments apply to the following sites:

1. 154 Poppy Avenue (APN 048-042-001): amendment of the General Plan and zoning designations from General Commercial (GC) to High-Density Residential (HR);

2. 16451 Highway 33 (APN 048-042-008): amendment of the General Plan and zoning designations from General Commercial (GC) to High-Density Residential (HR);

3. 440 Sperry Avenue (APN 048-043-002): amendment of the General Plan and zoning Packet Pg. 1223
designations from General Commercial (GC) to High-Density Residential (HR);

4. 125 Poppy Avenue (APN 048-043-015): amendment of the General Plan and zoning designations from General Commercial (GC) to High-Density Residential (HR);

5. 801 West Las Palmas Avenue (APN 048-048-007): amendment of the General Plan and zoning designations from General Commercial (GC) to Downtown Core (DC);

6. 0 Rogers Road (APN 021-028-007): amendment of the zoning designation to apply a mixed-use overlay to the existing Highway Service Commercial (HSC) designation;

7. 0 Rogers Road (APN 021-028-008): amendment of the zoning designation to apply a mixed-use overlay to the existing Highway Service Commercial (HSC) designation; and

8. 0 Sperry Avenue (APN 021-098-003): amendment of the zoning designation to apply a mixed-use overlay to the existing General Commercial (GC) designation.

Maps illustrating the proposed amendments are included as Exhibit A.

ANALYSIS
Consistency with Housing Element Law
The proposed amendments are required to implement Program 1.11 and Program 1.12 of the City’s adopted Housing Element and ensure that the City maintains compliance with State Housing Element law. The amendments increase allowable residential densities and permit residential uses on sites previously limited to commercial uses, thereby ensuring that adequate sites are available to accommodate the City’s RHNA, including lower-income housing.

Additionally, the ordinance establishes by-right development consistent with Government Code Section 65583.2.

Adequate Sites and Development Feasibility
The identified sites are included in the Housing Element sites inventory and were evaluated for their suitability to accommodate residential development. The proposed amendments establish land use designations and zoning standards that support residential development at densities consistent with State law and HCD guidance for lower-income housing.

General Plan Consistency
The proposed amendments are consistent with the goals and policies of the General Plan and Housing Element, particularly those related to housing production, land use efficiency, and provision of adequate sites for residential development.

ENVIRONMENTAL REVIEW
The City has evaluated the potential environmental impacts of the proposed General Plan land use amendments and zoning map amendments and determined that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption) and further pursuant to Public Resources Code 21080.085.

Pursuant to Public Resources Code 21080.085, subdivision (a), CEQA does not apply to a “rezoning that implements the schedule of actions contained in an approved housing element pursuant to subdivision (c) of Section 65583 of the Government Code.” The proposed project is statutorily exempt from CEQA, as it includes site-specific land use changes and rezones that implement the schedule of actions contained in the 6th Cycle Housing Element.

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The land use and zoning amendments are further exempt pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption). The above action involves land use designation and rezoning actions to implement the City’s identified sites to advance attainment of the City’s RHNA targets. The proposed project does not grant any development entitlements or authorize development of new housing on any of the above sites. Physical development of the identified sites would require project-specific review and formal development applications, technical studies, and further evaluation in accordance with CEQA and City plans, ordinances, and standards. Without any tangible development application for specific sites, there is no foreseeable, reasonable possibility that adopting the proposed project would result in a significant effect on the environment.

FISCAL IMPACT
There is no budget impact associated with this item.

ATTACHMENTS
City Council Resolution No. 2026-29
Ordinance No. 886
Proposed General Plan Land use and Zoning Map Amendments Notice of Exemption for Zoning Map Amendments
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RESOLUTION NO. 2026-29

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON

APPROVING THE ADOPTION OF GENERAL PLAN LAND USE AMENDMENTS TO IMPLEMENT THE 2023–2031 6TH CYCLE HOUSING ELEMENT PROGRAM 1.11 WHEREAS, on December 2, 2025, the City of Patterson received a letter from the California Department of Housing and Community Development (HCD) finding the City’s October 3, 2025 Revised Draft Housing Element to be in substantial compliance with State Housing Element law, contingent upon the completion of required land use amendments and rezoning to make identified sites available to accommodate the City’s Regional Housing Needs Allocation; and WHEREAS, pursuant to Government Code Sections 65583 and 65583.2, jurisdictions that did not adopt a compliant Housing Element within 120 days of the statutory deadline (December 31, 2023) are required to complete necessary rezoning within one year of the deadline to ensure adequate sites are available; and
WHEREAS, the City of Patterson has committed to timely and effective implementation of all Housing Element programs, including Program 1.11, which requires redesignation of multiple parcels through General Plan land use amendments; and
WHEREAS, Housing Element Program 1.11 is intended to ensure the City of Patterson can accommodate its total Regional Housing Needs Allocation of 3,912 units—including the carryover of 196 lower-income units from the prior planning cycle—through site-specific land use amendments that facilitate the development of higher density housing on identified sites, consistent with State Housing Element law; and
WHEREAS, the proposed General Plan land use amendments are necessary to implement Program 1.11 of the City’s Housing Element and ensure the City maintains compliance with State Housing Element law by providing adequate sites at appropriate densities to accommodate its Regional Housing Needs Allocation; and
WHEREAS, the identified sites are included in the Housing Element sites inventory and, upon redesignation, will be available for residential development at densities sufficient to accommodate lower- and moderate-income housing, consistent with State Housing Element law; and WHEREAS, the following parcels are identified in Program 1.11 requiring redesignation through General Plan land use amendments:
• 154 Poppy Avenue (APN 048-042-001): amendment of the General Plan designation from General Commercial (GC) to High-Density Residential (HR); • 16451 Highway 33 (APN 048-042-008): amendment of the General Plan designation from General Commercial (GC) to High-Density Residential (HR); • 440 Sperry Avenue (APN 048-043-002): amendment of the General Plan designation from General Commercial (GC) to High-Density Residential (HR); • 125 Poppy Avenue (APN 048-043-015): amendment of the General Plan designation from General Commercial (GC) to High-Density Residential (HR); Packet Pg. 1226
• 801 West Las Palmas Avenue (APN 048-048-007): amendment of the General Plan designation from General Commercial (GC) to Downtown Core (DC); WHEREAS, the proposed amendments support the City’s obligation to maintain an adequate inventory of sites to accommodate its Regional Housing Needs Allocation throughout the planning period, consistent with Government Code Section 65583.2; and WHEREAS, the City has evaluated the potential environmental impacts of the proposed General Plan land use amendments and determined that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption). The proposed General Plan land use amendments do not approve or entitle any specific development project, and any future development will be subject to separate review and environmental analysis, as required by CEQA; and
WHEREAS, the City has prepared a Notice of Exemption and proposes to file the Notice of Exemption in accordance with CEQA requirements; and
WHEREAS, the Planning Commission of the City of Patterson conducted a duly noticed public hearing on April 23, 2026, and considered all oral and written testimony, the staff report, and all associated materials; and
WHEREAS, the City Council of the City of Patterson conducted a duly noticed public hearing on May 19, 2026, and received the staff report and presentation, considered the recommendation of the Planning Commission and all oral and written testimony, and discussed the matter; and
WHEREAS, based on its independent review and analysis, the staff analysis, oral and written testimony, the City Council finds, after due study, deliberation and public hearing that the following circumstances exist:

1. The proposed General Plan land use amendments are in the public interest and the General Plan as amended will remain internally consistent.

2. The proposed General Plan land use amendments are consistent with the goals, policies, and standards of the Patterson General Plan and all other applicable standards and ordinances of the City of Patterson.

3. The proposed General Plan land use amendments ensure that the City provides adequate sites at appropriate densities and development standards to accommodate its Regional Housing Needs Allocation, including lower-income housing, in compliance with Government Code Section 65583.2.

4. The proposed General Plan land use amendments will assist the City in meeting its Regional Housing Needs Allocation, consistent with the City’s Housing Element.

5. The proposed project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) and Public Resources Code Section 21080.085.

Packet Pg. 1227
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Patterson hereby approves the following:

1. General Plan land use amendments to implement the 2023–2031 6th Cycle Housing Element Program 1.11;

2. Make a finding that the project is exempt from the California Environmental Quality Act (CEQA); and

3. Authorize staff to file a Notice of Exemption with the Stanislaus County Clerk and State Clearinghouse.

The foregoing resolution of the City Council of the City of Patterson was passed by the City Council at regular meeting held on the 19th day of May, 2026, by ____________________, who moved its adoption, which motion was duly seconded by ____________________, and the resolution adopted by the following roll call vote:

AYES:

NOES:

EXCUSED:

APPROVED:
______________________________
Michael Clauzel
Mayor of the City of Patterson
ATTEST:
____________________________
Aracely Alegre
City Clerk of the City of Patterson
I hereby certify that the foregoing is a full, correct and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 19th day of May 2026, and I further certify that said resolution is in full force and effect and has never been rescinded or modified.

DATED:
___________________________________
City Clerk of the City of Patterson
Packet Pg. 1228
ORDINANCE NO. 886

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PATTERSON

APPROVING ZONING MAP AMENDMENTS TO ADDRESS A SHORTFALL OF

SITES, AND ALSO ESTABLISHING DEVELOPMENT PROVISIONS FOR

SHORTFALL AND PRIOR IDENTIFIED HOUSING ELEMENT SITES TO IMPLEMENT THE 2023-2031 6TH CYCLE HOUSING ELEMENT
(PROGRAMS 1.11, 1.12)
WHEREAS, on December 2, 2025, the City of Patterson received a letter from the California Department of Housing and Community Development (HCD) finding the City’s October 3, 2025 Revised Draft Housing Element to be in substantial compliance with State Housing Element law, contingent upon the completion of required rezonings to make identified sites available to accommodate the City’s Regional Housing Needs Allocation (RHNA); and WHEREAS, pursuant to Government Code Sections 65583 and 65583.2, jurisdictions that did not adopt a compliant Housing Element within 120 days of the statutory deadline are required to complete necessary rezoning within one year of the deadline to ensure adequate sites are available; and
WHEREAS, the City’s 2023–2031 6th Cycle Housing Element includes Programs 1.11 and

1.12, which require zoning map amendments and certain development provisions to ensure adequate sites are available at appropriate densities to accommodate the City’s RHNA of 3,912 units, including lower-income housing; and
WHEREAS, for purposes of implementing Programs 1.11 and 1.12 of the 2023–2031 Housing Element and maintaining adequate capacity to accommodate the City’s RHNA, the sites addressed by this Ordinance consist of:
(i) “shortfall sites,” which are sites required to be rezoned to address a shortfall in the inventory of sites available to accommodate lower-income housing; and (ii) “prior identified sites,” which are sites identified in a prior Housing Element for which the City must demonstrate continued suitability and availability for residential development at appropriate densities.

WHEREAS, such shortfall sites and prior identified sites are subject to the applicable provisions of Government Code Section 65583.2(c), (h), and (i), which require that sites be made available at appropriate densities and permitted for residential development by right under specified conditions to ensure the City can accommodate its RHNA; and WHEREAS, the following parcels are identified as shortfall sites intended to address a shortfall of lower-income housing capacity and subject to rezoning pursuant to Government Code Section 65583.2:
• 154 Poppy Avenue (APN 048-042-001): amendment of the zoning designation from General Commercial (GC) to High-Density Residential (HR); Packet Pg. 1229
• 16451 Highway 33 (APN 048-042-008): amendment of the zoning designation from General Commercial (GC) to High-Density Residential (HR); • 440 Sperry Avenue (APN 048-043-002): amendment of the zoning designation from General Commercial (GC) to High-Density Residential (HR); • 125 Poppy Avenue (APN 048-043-015): amendment of the zoning designation from General Commercial (GC) to High-Density Residential (HR); • 801 West Las Palmas Avenue (APN 048-048-007): amendment of the zoning designation from General Commercial (GC) to Downtown Core (DC); • 0 Rogers Road (APN 021-028-007): amendment of the zoning designation to apply a mixed-use overlay to the existing Highway Service Commercial (HSC) designation; • 0 Rogers Road (APN 021-028-008): amendment of the zoning designation to apply a mixed-use overlay to the existing Highway Service Commercial (HSC) designation; • 0 Sperry Avenue (APN 021-098-003): amendment of the zoning designation to apply a mixed-use overlay to the existing General Commercial (GC) designation.

WHEREAS, to ensure compliance with Government Code Section 65583.2 subdivisions (c), (h), and (i) applicable to shortfall sites, this Ordinance establishes certain development standards which shall apply only to the parcels identified below that allow mixed-use development:
• APN 048-048-007 (Downtown Core)
• APN 021-028-007 (Highway Service Commercial with Mixed-Use Overlay) • APN 021-028-008 (Highway Service Commercial with Mixed-Use Overlay) • APN 021-098-003 (General Commercial with Mixed-Use Overlay) The development standards applicable to the parcels identified above are as follows:
(i) Residential uses, including multi-family residential uses, shall be permitted on up to 100 percent of the site;
(ii) Residential development shall be permitted at a minimum density of 20 dwelling units per acre. This minimum density requirement shall apply notwithstanding any contrary or more restrictive provisions of the underlying zoning district, including any zoning provisions that establish only a maximum density or do not establish a minimum density.

WHEREAS, notwithstanding any provision of the Patterson Municipal Code or underlying zoning designation, including the Downtown Core zoning district and any mixed-use overlay zoning district, the standards set forth above shall apply to the parcels identified above [APN 048- 048-007; 021-028-007; 021-028-008; 021-098-003] and shall prevail over any conflicting or less permissive provisions of the underlying zoning district or overlay, including but not limited to provisions relating to permitted uses, residential floor area, and density; and WHEREAS, the Housing Element identifies prior identified sites subject to the provisions of Government Code Section 65583.2, including APN 048-048-007 and APN 047-034-035; and WHEREAS, APN 048-048-007 is also subject to the zoning map amendments and development standards set forth in this Ordinance; and
Packet Pg. 1230
WHEREAS, APN 047-034-035 is not subject to any zoning map amendment under this Ordinance, and the City finds that the existing High Density Residential zoning applicable to this site permits residential uses at densities appropriate to accommodate lower-income housing and is therefore sufficient to satisfy the requirements of Government Code Section 65583.2(c); and WHEREAS, the City affirms that both prior identified sites are suitable and available for residential development consistent with applicable zoning and State Housing Element law; and WHEREAS, consistent with Government Code Section 65583.2, all shortfall sites and prior identified sites addressed in this Ordinance shall permit by-right residential development, including multi-family residential development, for projects in which at least 20 percent of the units are affordable to lower-income households and subject to an affordability agreement; and WHEREAS, for purposes of this Ordinance, “by-right” development means that the project shall not require a conditional use permit, planned unit development permit, discretionary design review, or any other discretionary approval that would constitute a “project” under the California Environmental Quality Act (CEQA), and shall instead be subject only to objective zoning, subdivision, and design standards; and
WHEREAS, nothing in this Ordinance shall be construed to supersede applicable provisions of the Subdivision Map Act or local ordinance except as necessary to comply with Government Code Section 65583.2(i); and
WHEREAS, the Planning Commission of the City of Patterson conducted a duly noticed public hearing on April 23, 2026, and recommended approval of the proposed zoning map amendments and associated development standards; and
WHEREAS, the City Council of the City of Patterson conducted a duly noticed public hearing on May 19, 2026, and received the staff report and presentation, considered the recommendation of the Planning Commission and all oral and written testimony, and discussed the matter; and WHEREAS, the City has evaluated the potential environmental impacts of the proposed zoning map amendments and development provisions and determined that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption) and further pursuant to Public Resources Code Section 21080.085, which exempts rezoning actions that implement a jurisdiction’s Housing Element; and WHEREAS, based on its review and consideration of the staff report, applicable General Plan and Housing Element documents, and oral and written testimony presented, the City Council finds as follows:

1. The proposed zoning map amendments and associated development standards are consistent with the goals, policies, and implementation programs of the General Plan and Housing Element.

2. The proposed zoning map amendments and associated development standards are necessary to implement Programs 1.11 and 1.12 of the Housing Element and be in compliance with State housing law.

Packet Pg. 1231

3. The proposed zoning map amendments and associated development standards ensure that the City provides adequate sites at appropriate densities and development standards to accommodate its RHNA, including lower-income housing, in compliance with Government Code Section 65583.2.

4. The proposed zoning map amendments and associated development standards will not be detrimental to the public health, safety, or welfare and represents an orderly and beneficial use of land, and will result in an orderly planning use of land resources.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PATTERSON DOES ORDAIN AS FOLLOWS:

1. The recitals and findings above are found to be true and correct and are hereby incorporated and made part of this Ordinance.

2. The Zoning Map of the City of Patterson is hereby amended to redesignate the parcels identified above to the zoning designations specified in this Ordinance, as shown in Exhibit A, attached hereto and incorporated herein by reference.

3. The identified parcels shall be subject to the development standards provided below:

APN Zoning
048-048-007 Downtown Core
021-028-007 Highway Service Commercial with MixedUse Overlay 021-028-008 Highway Service Commercial with MixedUse Overlay 021-098-003 General Commercial with Mixed-Use Overlay
APPLICABLE DEVELOPMENT STANDARDS:
(a) Residential uses, including multi-family residential uses, shall be permitted on up to 100 percent of the site.
(b) Residential development shall be permitted at a minimum density of 20 dwelling units per acre. This minimum density requirement shall apply notwithstanding any contrary or more restrictive provisions of the underlying zoning district, including any zoning provisions that establish only a maximum density or do not establish a minimum density.
(c) Notwithstanding any provision of the Patterson Municipal Code or underlying zoning designation, including the Downtown Core zoning district and any mixeduse overlay zoning district, the standards set forth above shall only apply to the parcels identified above and shall prevail over any conflicting or less permissive provisions of the underlying zoning district or overlay, including but not limited to, provisions relating to permitted uses, residential floor area, and density.

Packet Pg. 1232

4. The following “shortfall sites” shall be subject to the by-right development standards provided below:

APN Zoning
048-042-001 High-Density Residential (HR)
048-042-008 High-Density Residential (HR)
048-043-002 High-Density Residential (HR)
048-043-015 High-Density Residential (HR)
048-048-007 Downtown Core
021-028-007 Highway Service Commercial with MixedUse Overlay 021-028-008 Highway Service Commercial with MixedUse Overlay 021-098-003 General Commercial with Mixed-Use
Overlay
APPLICABLE BY-RIGHT DEVELOPMENT STANDARDS:

On the parcels identified above, by-right residential development shall be permitted, including multi-family residential development, for projects in which at least 20 percent of the units are affordable to lower-income households and subject to an affordability agreement.

5. The following “prior identified sites” shall be subject to the by-right development standards provided below:

APN Zoning
048-048-007 Downtown Core
047-034-035 High-Density Residential
APPLICABLE BY-RIGHT DEVELOPMENT STANDARDS:

6. This Ordinance shall take effect and be in full force thirty (30) days from and after its passage, and publication of the Ordinance shall occur in a newspaper of general circulation at least fifteen (15) days prior to its effective date, or a summary of the Ordinance shall be published in a newspaper of general circulation at least five (5) days prior to adoption and again at least fifteen (15) days prior to its effective date.

7. The proposed project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) and Public Resources Code Section 21080.085.

Packet Pg. 1233
The foregoing ordinance was introduced at a regular meeting of the City Council of the City of Patterson, held on the 19th, day of May, 2026, by ____________________, and adopted at a regular meeting of the City Council of the City of Patterson held on the ____, day of ______________, 2026, by the following roll call vote:

AYES:

NOES:

EXCUSED:

APPROVED:

Michael Clauzel, Mayor
ATTEST:

Aracely Alegre, City Clerk
Packet Pg. 1234
Existing and Proposed Land Use & Zoning (Site 6)
Figure 1
City of Patterson 6th Cycle Housing Element Implementation Source: Stanislaus County GIS 2026
0 300 feet 0 300 feet
Existing Land Use & Zoning Proposed Land Use & Zoning
APN:
048-042-001

5.5 Acres
154 Poppy Ave.

Patterson, CA 95363
Poppy Ave.

Proposed GP & Zoning Boundary
High Density Residential
General Commercial
Low Density Residential
Estate Residential
Light Industrial
Heavy Industrial
Existing GP & Zoning Boundary
General Commercial
Low Density Residential
Estate Residential
Light Industrial
Heavy Industrial
State Route 33
Poppy Ave.

State Route 33
APN:
048-042-001

5.5 Acres
154 Poppy Ave.

Patterson, CA 95363
Packet Pg. 1235
Existing and Proposed Land Use & Zoning (Site 7)
Figure 2
City of Patterson 6th Cycle Housing Element Implementation Source: Stanislaus County GIS 2026
0 300 feet 0 300 feet
Existing Land Use & Zoning Proposed Land Use & Zoning
APN:
048-042-008

3.97 Acres
16451 HWY 33
Patterson, CA 95363
Poppy Ave.

State Route 33
APN:
048-042-008

3.97 Acres
16451 HWY 33
Patterson, CA 95363
Packet Pg. 1236
Existing and Proposed Land Use & Zoning (Site 8)
Figure 3
City of Patterson 6th Cycle Housing Element Implementation Source: Stanislaus County GIS 2026
0 300 feet 0 300 feet
Existing Land Use & Zoning Proposed Land Use & Zoning
Sperry Ave.

Proposed GP & Zoning Boundary
General Commercial
Parks/Open Space
Low Density Residential
Downtown Residential
Heavy Industrial
Existing GP & Zoning Boundary
General Commercial
Parks/Open Space
Low Density Residential
Downtown Residential
Heavy Industrial
S Fourth St.

APN:
048-043-002

2.08 Acres
440 Sperry Ave.

Patterson, CA 95363
S Third St.

B St.

C St.

Sunflower Dr. Meghan Dr.

APN:
048-043-002

2.08 Acres
440 Sperry Ave.

Patterson, CA 95363
Sperry Ave.

S Fourth St.

S Third St.

B St.

C St.

Sunflower Dr. Meghan Dr.

Packet Pg. 1237
Existing and Proposed Land Use & Zoning (Site 9)
Figure 4
City of Patterson 6th Cycle Housing Element Implementation Source: Stanislaus County GIS 2026
0 300 feet 0 300 feet
Existing Land Use & Zoning Proposed Land Use & Zoning
Proposed GP & Zoning Boundary
High Density Residential
General Commercial
Low Density Residential
Light Industrial
Heavy Industrial
Existing GP & Zoning Boundary
General Commercial
Low Density Residential
Light Industrial
Heavy Industrial
Poppy Ave.

State Route 33
APN:
048-043-015

2.55 Acres
125 Poppy Ave.

Patterson, CA 95363
APN:
048-043-015

2.55 Acres
125 Poppy Ave. Poppy Ave.

Patterson, CA 95363
State Route 33
Packet Pg. 1238
Existing and Proposed Land Use & Zoning (Site 10)
Figure 5
City of Patterson 6th Cycle Housing Element Implementation Source: Stanislaus County GIS 2026
0 300 feet 0 300 feet
Existing Land Use & Zoning Proposed Land Use & Zoning
Proposed GP & Zoning Boundary
Low Density Residential
High Density Residential
General Commercial
Public/Quasi-Public
Downtown Core
Existing GP & Zoning Boundary
Low Density Residential
High Density Residential
General Commercial
Public/Quasi-Public
APN:
048-048-007

10.21 Acres
801 W Las Palmas Ave.

Patterson, CA 95363 W Las Palmas Ave.

N 9th St.

APN:
048-048-007

2.55 Acres
801 W Las Palmas Ave.

Patterson, CA 95363
Ward Ave.

W Las Palmas Ave.

N 9th St.

Ward Ave.

Packet Pg. 1239
Existing and Proposed Land Use & Zoning (Site 12)
Figure 6
City of Patterson 6th Cycle Housing Element Implementation Source: Stanislaus County GIS 2026
0 300 feet 0 300 feet
Existing Land Use & Zoning Proposed Land Use & Zoning
Proposed GP & Zoning Boundary
Highway Service Commercial
General Commercial
Light Industrial
Mixed-Use Overlay
Existing GP & Zoning Boundary
Highway Service Commercial
General Commercial
Light Industrial
Sperry Ave.

APN:
021-028-007

3.41 Acres
0 Rogers Rd.

Patterson, CA 95363 Rodgers Rd.

Rodgers Rd.

Sperry Ave.

APN:
021-028-007

3.41 Acres
0 Rogers Rd.

Patterson, CA 95363
Packet Pg. 1240
Existing and Proposed Land Use & Zoning (Site 13)
Figure 7
City of Patterson 6th Cycle Housing Element Implementation Source: Stanislaus County GIS 2026
0 300 feet 0 300 feet
Existing Land Use & Zoning Proposed Land Use & Zoning
Proposed GP & Zoning Boundary
General Commercial
Highway Service Commercial
Light Industrial
Mixed-Use Overlay
Existing GP & Zoning Boundary
Highway Service Commercial
General Commercial
Light Industrial
Sperry Ave.

APN:
021-028-008

2.06 Acres
0 Rogers Rd.

Patterson, CA 95363
Rodgers Rd.

Rodgers Rd.

Sperry Ave.

APN:
021-028-008

2.06 Acres
0 Rogers Rd.

Patterson, CA 95363
Packet Pg. 1241
Existing and Proposed Land Use & Zoning (Site 14)
Figure 8
City of Patterson 6th Cycle Housing Element Implementation Source: Stanislaus County GIS 2026
0 300 feet 0 300 feet
Existing Land Use & Zoning Proposed Land Use & Zoning
Proposed GP & Zoning Boundary
Medium Density Residential
General Commercial
Public/Quasi-Public
Light Industrial
Mixed-Use Overlay
Existing GP & Zoning Boundary
Medium Density Residential
Light Industrial
Public/Quasi-Public
General Commercial
Sperry Ave.

Park Center Dr.

Sperry Ave.

APN:
021-098-003

8.53 Acres
0 Sperry Ave.

Patterson, CA 95363
APN:
021-098-003

8.53 Acres
0 Sperry Ave.

Patterson, CA 95363
Park Center Dr.

Packet Pg. 1242
Notice of Exemption
To: Office of Planning and Research From: City of Patterson P.O. Box 3044, 1400 Tenth Street, Room 212 1 Plaza (P.O. Box 667) Sacramento, CA 95812-3044 Patterson, CA 95363
County Clerk
County of Stanislaus
1021 I Street, Suite 101
Modesto, CA 95354
Project Title: City of Patterson 2023-2031 6th Cycle Housing Element Program 1.11 Implementation – General Plan Land Use Amendments and Zoning Map Amendments
Project Applicant: City of Patterson
Project Location – Specific: Various parcels within City limits Project Location – City: Patterson Project Location – County: Stanislaus Description of Nature, Purpose and Beneficiaries of the Project:

The proposed project consists of General Plan land use redesignations and zoning map amendments for sites identified in Housing Element Program 1.11 to facilitate higher-density residential and mixed-use development.

The proposed amendments apply to the following sites:

1. 154 Poppy Avenue (APN 048-042-001): amendment of the General Plan and zoning designations from General Commercial (GC) to High-Density Residential (HR);

2. 16451 Highway 33 (APN 048-042-008): amendment of the General Plan and zoning designations from General Commercial (GC) to High-Density Residential (HR);

3. 440 Sperry Avenue (APN 048-043-002): amendment of the General Plan and zoning designations from General Commercial (GC) to High-Density Residential (HR);

4. 125 Poppy Avenue (APN 048-043-015): amendment of the General Plan and zoning designations from General Commercial (GC) to High-Density Residential (HR);

5. 801 West Las Palmas Avenue (APN 048-048-007): amendment of the General Plan and zoning designations from General Commercial (GC) to Downtown Core (DC);

6. 0 Rogers Road (APN 021-028-007): amendment of the zoning designation to apply a mixed-use overlay to the existing Highway Service Commercial (HSC) designation;

7. 0 Rogers Road (APN 021-028-008): amendment of the zoning designation to apply a mixed-use overlay to the existing Highway Service Commercial (HSC) designation; and

8. 0 Sperry Avenue (APN 021-098-003): amendment of the zoning designation to apply a mixed-use overlay to the existing General Commercial (GC) designation.

The specified sites are included in the Housing Element sites inventory and, upon redesignation and rezoning, will be available for residential development at densities sufficient to accommodate lower- and moderate-income housing consistent with State law. The proposed amendments do not approve any specific development project. Physical development of the identified sites would require formal development applications, technical studies, and further evaluation in accordance with CEQA and City plans, ordinances, and standards.

Name of Public Agency Approving Project: City of Patterson Name of Person or Agency Carrying Out Project: City of Patterson Exempt Status: (check one)
Ministerial (Sec. 21080(b)(1); 15268);
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Categorical Exemption. State type and section number: Common Sense Exemption (Sec. 15061(b)(3)) Packet Pg. 1243
Statutory Exemptions. State code number: Public Resources Code 21080.085 Reasons why project is exempt:

The City has evaluated the potential environmental impacts of the proposed General Plan land use amendments and zoning map amendments and determined that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption) and further pursuant to Public Resources Code 21080.085.

The land use and zoning amendments are further exempt pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption). The above action involves land use designation and rezoning actions to implement the City’s identified sites to advance attainment of the City’s RHNA targets. The proposed project does not grant any development entitlements or authorize development of new housing on any of the above sites. Physical development of the identified sites would require project-specific review and formal development applications, technical studies, and further evaluation in accordance with CEQA and City plans, ordinances, and standards. Without any tangible development application for specific sites, there is no foreseeable, reasonable possibility that adopting the proposed project would result in a significant effect on the environment.

Lead Agency
Contact Person: Bryan Stice, Community
Development Director
Area Code/Telephone/Extension: 209-895-8074
If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project? Yes No Signature: _____________________________________ Date: ____________ Title: __________________________ Signed by Lead Agency
Date received for filing at OPR: _____________________
Signed by Applicant Revised 2011
Packet Pg. 1244

CITY COUNCIL

AGENDA REPORT
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, City Manager
BY: Bryan Stice, Community Development Director
MEETING DATE: May 19, 2026
ITEM NO: 8.3
SUBJECT: Adopt of Resolution No. 2026-30 approving the adoption of a General Plan Amendment to adopt 2023-2031 Housing Element of the General Plan.

RECOMMENDATION
Motion to Adopt Resolution No. 2026-30 approving the adoption of a General Plan Amendment to adopt 2023-2031 Housing Element of the General Plan.

SUMMARY
On April 23, 2026, the City of Patterson Planning Commission approved Resolution 2026-02 recommending the City Council 1) adopt a General Plan Amendment to adopt the 2023–2031 6th Cycle Housing Element, 2) make a finding that the Housing Element is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), and 3) authorize City staff to file a Notice of Exemption with the Stanislaus County Clerk and State Clearinghouse.

The updated Housing Element identifies how the City will accommodate its housing needs across all income levels in compliance with State law and establishes the framework for housing development during the 2023–2031 planning period.

BACKGROUND
The City has prepared a draft update to the Housing Element of the General Plan (Attachment C) to affirmatively further fair housing and accommodate the 3,716-unit Regional Housing Needs Allocation (RHNA) for the 2023-2031 Housing Element cycle in addition to a carryover of 196 lower-income units from the 5th Cycle Housing Element planning period, resulting in a total RHNA of 3,912 units. The content of the draft 2023-2031 6th Cycle Housing Element is structured for consistency with the requirements set forth in State law. In addition to responding to requirements of State law, the Housing Element also demonstrates the City’s strategy for meeting the City’s locally determined housing needs and that these needs are addressed through Packet Pg. 1245
policies and programs outlined within the Housing Element. Public review and input have been a critical component of this 6th Cycle Housing Element Update.

This staff report provides a summary of the Housing Element requirements, an overview of the status of the City’s draft Housing Element, and the findings provided to the City by the California Department of Housing and Community Development (HCD) on the first 90-day review and subsequent statutory compliance letter. The City has responded to HCD’s comments and believes that the draft Housing Element substantially complies with Housing Element law, as stated in the statutory compliance letter dated December 2, 2025.

The following section summarizes the required components of Housing Element Updates per State law, new requirements since the 5th Cycle Housing Element Update (2015-2023), penalties for noncompliance with Housing Element laws, and a discussion of the City’s Regional Housing Needs Allocation (RHNA). The section also includes a summary of each required component and where these are located in the updated draft Housing Element.

STATE HOUSING ELEMENT LAW & ADOPTION PROCESS
California Government Code Title 7, Division 1, Chapter 3, Article 10.6 [65580 – 65589.11] regulates the use and requirements of housing elements in California. The state law requires jurisdictions to update their General Plan Housing Element every eight years. State law further requires the current update for jurisdictions in the Stanislaus Council of Governments (StanCOG) region to comply by December 31, 2023.

The City’s 2023-2031 Draft Housing Element was prepared with the benefit of input from the community and discussion at a joint City Council and Planning Commission meeting. Guidance was also provided by Housing and Community Development (HCD) throughout the process.

On November 5, 2024, the City released the Public Review Draft Housing Element for a 30-day review and public comment period. The public comment period ended on December 5, 2024.

The City held a joint City Council and Planning Commission Workshop on November 12, 2024 to review the Housing Element and accept public comment. The draft was subsequently revised to address public comment and on February 3, 2025, the City submitted the Initial Draft Housing Element to HCD for a 90-day review.

City staff met with HCD for a technical assistance workshop on April 2, 2025 to discuss preliminary findings on the Initial Draft Housing Element, which resulted in preparation of Revised Draft Housing Element that was posted for a seven-day public review period beginning on April 16, 2025 and ending on April 23, 2025. Public comments were received on the April 16, 2025 Revised Draft, which were incorporated and then submitted to HCD on April 29, 2025 for review and consideration.

The City received HCD’s 90-day findings letter on May 2, 2025. Based on discussions with HCD, staff revised the draft Housing Element to include additional information and analysis.

Prior to resubmittal to HCD, the draft Housing Element was posted for a seven-day public review and comment period beginning on August 6, 2025 and ending on August 13, 2025. The public review period was extended an additional seven days ending on August 22, 2025. All public comments were considered during preparation of the subsequent draft.

On October 3, 2025, the City submitted a Revised Draft Housing Element to HCD for the required 60-day review period and subsequently received a letter from HCD on December 2, 2025 finding that the October 3, 2025 Housing Element meets statutory requirements under Government Code Section 65585.

On March 24, 2026, the City received a letter from HCD stating the City’s updated Housing Packet Pg. 1246
Element was due on December 31, 2023, and that the City’s most recent draft Housing Element is not in substantial compliance with Housing Element law because the City has not completed and submitted the necessary rezonings identified under Program 1.11 of the Housing Element.

The City must implement the rezonings identified in Program 1.11 of the Housing Element, adopt the 2023-2031 6th Cycle Housing Element and rezones, and submit both to HCD for review and certification before the Housing Element can be considered compliant.

The following section summarizes the required components of Housing Element Updates per State law, new requirements since the 5th Cycle Housing Element Update (2015-2023), and penalties for noncompliance with Housing Element laws. The section also includes a summary of public meetings related to the 6th Cycle Housing Element Update prior to today’s meeting.

REQUIRED COMPONENTS OF A HOUSING ELEMENT
Pursuant to Government Code Section 65583, local governments are required to include the items below as components within their Housing Elements and subsequent updates thereto.

Newly required components introduced as part of the 6th Cycle are noted below and discussed in further detail within the “New Requirements for the 6th Cycle Housing Element Update” Section below.

1. Housing Needs Assessment. Examine demographic, employment, and housing trends and conditions and identify the community's existing and projected housing needs, with attention paid to special housing needs (e.g., large families, persons with disabilities). This section includes a community’s Regional Housing Needs Allocation (RHNA) as determined by the community’s regional planning body in partnership with HCD.

2. Evaluation of Past Performance. Review the prior Housing Element to measure progress in implementing policies and programs.

3. Housing Sites Inventory. Identify locations of available sites for housing development or redevelopment to demonstrate there is enough land zoned for housing to meet future needs at all income levels. Pursuant to a new component of state law, the standards for designating adequate sites were substantially changed from the 6th cycle, particularly for non-vacant sites.

4. Community Engagement. Implement a robust community engagement program that includes reaching out to individuals and families at all economic levels of the community plus historically underrepresented groups.

5. Constraints Analysis. Analyze and recommend remedies for existing and potential governmental and nongovernmental barriers to housing development.

6. Policies and Programs. Establish policies and programs to be carried out during the 2023- 2031 planning period to fulfill the identified housing needs.

7. Affirmatively Furthering Fair Housing. New component of state law: Analyze and address significant disparities in housing needs and access to opportunity by proposing housing goals, objectives, and policies that aid in replacing segregated living patterns with truly integrated and balanced living patterns, transforming racially and ethnically concentrated areas of poverty into areas of opportunity, and fostering and maintaining compliance with civil rights and fair housing laws.

NEW REQUIREMENTS FOR THE 6TH CYCLE HOUSING ELEMENT UPDATE Pursuant to recent State legislation, the following items are now required as part of the Housing Element Update process:

Affirmatively Furthering Fair Housing (AFFH)
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Assembly Bill 686 (AB 686), passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing. According to AB 686, affirmatively furthering fair housing means to take “meaningful actions, in addition to combating discrimination, which overcome patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected characteristics (such as race, sexual orientation, or disability)” and is Federally mandated by the 1968 Fair Housing Act.

Public Comment on Draft Revisions
Assembly Bill 215 (AB 215, 2021) requires local governments to make the first draft revision of their housing element update available for public comment for at least 30 days. Further, if any comments are received, a local government must take at least 10 additional business days to consider and incorporate public comments into the draft revision before submitting to HCD.

HCD must review the draft and report its written findings to the planning agency within 90 days of receiving the first draft submittal for each housing element revision or within 60 days of its receipt for a subsequent draft amendment or adoption.

PENALTIES FOR NON-COMPLIANCE
In the 6th Cycle, jurisdictions face a number of new consequences for not having a certified Housing Element. Under legislation enacted in recent years, if a jurisdiction does not comply with State housing law, HCD may refer the matter to the jurisdiction to the Attorney General, as indicated in the letter issued to the City on March 24, 2026. Significant fines may be imposed if a jurisdiction does not comply. A court finding that a Housing Element is inadequate may limit local land use decision-making authority until the jurisdiction brings its Housing Element into compliance, or local governments may lose the right to deny certain projects, including those submitted under the “Builder’s Remedy”.

In addition, an HCD-certified housing element makes jurisdictions eligible for, or with higher priority for, numerous sources of funding, such as Local Housing Allocations, Affordable Housing and Sustainable Communities Grants, SB 1 Planning Grants, CalHOME Program Grants, Infill Infrastructure Grants, Pro-Housing Design funding, Local Housing Trust Funds and Regional Transportation Funds (such as Stanislaus Regional Transportation Authority grants). A non-certified Housing Element puts the City at risk of being ineligible for such funding opportunities.

REGIONAL HOUSING NEEDS ALLOCATION (RHNA)
In December 2021, the California Department of Housing and Community Development (HCD) issued a Final Regional Housing Need Determination to the StanCOG region for the 6th Cycle planning period of June 30, 2023 to December 31, 2031 and determined that the region must zone to accommodate a minimum of 34,344 housing units during this period.

California housing law (Government Code § 65580 et seq.) requires StanCOG to develop a Regional Housing Needs Allocation (RHNA) Plan to allocate existing and projected housing needs to local jurisdictions within Stanislaus County. Based on the final RHNA Plan, each city and the county must update its housing element to demonstrate how the jurisdiction will meet the expected growth in housing needs over this period of time. On August 17, 2022, the StanCOG Board of Directors adopted the Final 2023-2031 6th Cycle RHNA Plan. StanCOG’s Plan distributes the RHNA across the region’s county and cities based on demographic and population data received from the California Department of Finance (DOF). Local jurisdictions must then utilize their ascribed RHNA to update the housing elements of their general plans for the 6th Cycle planning period, inclusive of identifying eligible land resources to accommodate this RHNA. The City of Patterson’s RHNA is 3,716 units.

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RHNA requirements are organized into four affordability categories, established according to the Area Median Income (AMI) of a geography. These categories include very low-income residential units, which are affordable to households earning less than 50% of AMI; low-income residential units, which are affordable to households earning between 50% and 80% of AMI; moderate income residential units, which are affordable to households earning between 80% and 120%; and above moderate-income residential units which are affordable to households earning upwards of 120% of AMI.

The City’s RHNA breakdown is as follows:
• 1,046 very low-income units;
• 724 low-income units;
• 593 moderate-income units; and
• 1,353 above moderate-income units.

Additionally, another 196 lower-income units (referred to as an unaccommodated need), carried over from the 5th Cycle Housing Element RHNA obligations are required to be planned for, bringing the total number of units to 3,912.

HOUSING ELEMENT COMPONENTS
Housing Needs Assessment
As part of the Housing Element Update process the City is required to analyze the existing and projected housing needs of the City, including its fair share of RHNA requirements. The City’s analysis of housing needs is required to include an assessment of detailed demographic data, including population, age, size, and ethnicity; household characteristics; cost burden trends; housing stock conditions; units in need of replacement or rehabilitation; and needs of special needs populations including the elderly, persons with disabilities, unhoused persons, extremely low-income households, and farmworkers. The 6th Cycle Housing Element Update outlines the housing needs of the City in Chapter 1 of the Housing Element.

Constraints Analysis
In addition to analyzing the existing and projected housing needs of the City, the Housing Element Update must also identify and analyze potential and actual governmental and nongovernmental constraints to the maintenance, improvement, or development of housing for all income levels in the community, regardless of protected class. A summary of constraints to the development and improvement of housing in the City can be found in Chapter 2 of the Housing Element.

Goals, Policies, and Programs
The Housing Element Update includes a set of goals, policies, and implementing programs intended to promote the preservation, rehabilitation, and production of housing throughout the City. Goals are long range, broad, and comprehensive targets that describe the future outcomes the City desires. A policy is a specific instructional guideline that seeks to promote goals.

Together, goals and policies are implemented through a series of programs that identify specific, quantifiable actions the City will undertake during the 6th Cycle planning period. A summary of draft goals, policies, and programs can be found in Chapter 3 of the Housing Element.

Housing Resources & Sites Inventory
As part of the 6th Cycle housing element update, the City is required to identify resources available to the City for the preservation, rehabilitation, and production of housing throughout the community. This includes programmatic and financial resources, such as those offered Packet Pg. 1249
locally or through State or Federal partners. These resources also include land resources within the City that were identified as eligible for accommodation of the City’s RHNA Requirements.

Pursuant to Government Code Section 65583.2(a) the following land resources are eligible for accommodation of the City RHNA: vacant sites zoned for residential use; or vacant sites zoned for nonresidential use that allow residential development; or residentially zoned sites that are capable of being developed at a higher density; or sites zoned for nonresidential use that can be redeveloped for residential use, and for which the Housing Element includes a program to rezone the site. The City’s Housing Sites Inventory is summarized in Chapter 4 of the Housing Element.

State Law also requires the City to evaluate whether housing sites identified as suitable for accommodation of the City’s RHNA requirements are identified relative to the full scope of the assessment of fair housing (e.g., segregation and integration, racially and ethnically concentrated areas of poverty and affluence, access to opportunity, etc.). A summary of how housing sites were identified consistent with AFFH can be found in Appendix A of the Housing Element.

Affirmatively Furthering Fair Housing (AFFH)
Assembly Bill 686 (AB 686), passed in 2018, created new requirements for jurisdictions to affirmatively further fair housing as part of the Housing Element Update process. These requirements found in Government Code Section 8899.50 are intended to address racial inequalities seen today throughout the region which developed through historical policies and practices enacted at federal, state, regional and local levels and across the public and private sectors. Though many of these explicit forms of historical discrimination have been outlawed, the results of these systems have left a lasting imprint on both the region and the City. Racially explicit practices (e.g., racial covenants) that excluded persons of color from predominately white neighborhoods have been replaced with race-neutral land use policies that continue to exclude these same groups. Furthermore, rapidly increasing housing costs have deepened racial and economic disparity and segregation, displacing many low-income individuals and people of color to the peripheries of the region or out of the region altogether.

Assessment of Fair Housing
The City must also describe and analyze the unique housing circumstances of the City. This analysis is referred to as an Assessment of Fair Housing and analyzes circumstances within the City pertaining to Fair Housing, including:

1. Segregation and Integration Patterns. Analysis of segregation and integration patterns within the jurisdiction as well as regionally. Segregation and integration patterns are analyzed by evaluating the concentration (or lack thereof) of protected groups within the community, relative to their distribution across a larger geography.

2. Disparities In Access to Opportunity. Evaluates disparities in access to opportunity within the City, which are areas within the City that have substantial differences in access to education, transportation, economic and environmental outcomes than other areas as identified by the California Tax Credit Allocation Committee (TCAC).

3. Disproportionate Housing Needs (For Low-Income Households and Protected Classes). Evaluates disproportionate housing needs among low-income households and protected classes within the City. Disproportionate housing needs are evident when members of a protected group disproportionately experience a housing need compared to other groups or the total population. Disproportionate housing needs typically refer to the risk of displacement, overcrowding, or cost-burden, among others. Accordingly, the City must analyze and incorporate fair housing considerations into its 6th Cycle Housing Element Update to increase housing opportunities in high-resource neighborhoods and bring Packet Pg. 1250
additional resources to traditionally under-resourced neighborhoods. A comprehensive AFFH analysis can be found in Appendix A of the Housing Element.

Evaluation of Past Progress
Pursuant to State Law, the implementation status of Goals, Policies, and Programs from the City’s 5th Cycle Housing Element Update has been included in Appendix B of the Housing Element.

Public Participation and Community Outreach
The City must demonstrate “meaningful, frequent, and ongoing community participation, consultation, and coordination” as part of the 6th Cycle Housing Element Update process. This is intended to ensure that input has been received from groups historically and presently most impacted by fair housing issues and that local knowledge is incorporated into Housing Elements.

A review of the City’s targeted community outreach efforts can be found in Appendix C of the Housing Element.

HCD REVIEW PROCESS
Below is a summary of the formal review process. Numerous informal rounds of review with HCD also occurred.
• February 3, 2025: Initial Draft Housing Element submitted to HCD for 90-day review; • May 2, 2025: HCD 90-day findings letter received;
• October 3, 2025: Revised Draft Housing Element submitted to HCD for 60-day review, included as Attachment C;
• December 2, 2025: HCD statutory compliance letter received, included as Attachment D; and
• March 24, 2026: HCD notice of violation letter received, included as Attachment E.

ENVIRONMENTAL REVIEW
The City has evaluated the potential environmental impacts of the proposed General Plan Amendment to adopt the 2023-2031 Housing Element of the General Plan in compliance with State Housing Element law and determined that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption).

The 6th Cycle Housing Element is a State-mandated planning document that includes Goals, Policies, and Programs aimed at providing additional housing opportunities, removing governmental constraints to affordable housing, improving the condition of existing housing, and providing equal housing opportunities for all residents. The proposed project involves adoption of planning programs and policies; identifies sites subject to potential future development; and identifies zoning actions to advance attainment of the City’s RHNA targets. The 6th Cycle Housing Element does not grant any development entitlements or authorize development of new housing on any site identified in the Housing Element. Physical development of any site included in the proposed project would require formal development applications, technical studies, and further evaluation in accordance with CEQA and City plans, ordinances, and standards. Any future development would undergo project-specific developmental review to address potential impacts. The 6th Cycle Housing Element does not involve any physical changes with the potential to create an adverse effect on the environment. Without any tangible development application for specific sites or other physical change to the environment, there is no foreseeable, reasonable possibility that adopting the proposed project would result in a significant effect on the environment.

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FISCAL IMPACT
There is no budget impact associated with this item

ATTACHMENT
City Council Resolution No. 2026-30
Revised Draft Housing Element
HCD Statutory Compliance Letter
HCD Notice of Violation Letter
2023-2031 Notice of Exemption for 2023-2031 6th Cycle Housing Element Packet Pg. 1252
RESOLUTION NO. 2026-30

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PATTERSON

APPROVING THE ADOPTION OF A GENERAL PLAN AMENDMENT TO ADOPT THE 2023–2031 HOUSING ELEMENT OF THE GENERAL PLAN
WHEREAS, the California Legislature has found that California is experiencing a housing supply and affordability crisis that has resulted in significant economic, social, and environmental impacts (Government Code Section 65589.5); and
WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires the City of Patterson City Council to adopt a Housing Element for the eight-year planning period of 2023–2031 to accommodate the City’s Regional Housing Needs Allocation (RHNA) of 3,716 housing units; and
WHEREAS, the City of Patterson has an unaccommodated need from the 5th Cycle Housing Element of 196 lower-income units, resulting in a total housing need of 3,912 units to be addressed in the 6th Cycle Housing Element; and
WHEREAS, the City of Patterson has prepared the 2023–2031 Housing Element in compliance with State Housing Element Law, identifying adequate sites, policies, and programs to accommodate the City’s RHNA across all income levels; and WHEREAS, adoption of the Housing Element constitutes a General Plan Amendment pursuant to Government Code Section 65350 et seq.; and
WHEREAS, as provided in Government Code sections 65352 – 65352.5 the City of Patterson mailed a public notice to California Native American tribes provided by the Native American Heritage Commission and to other entities listed; and WHEREAS, none of the California Native American Tribes requested consultation after being provided with information, including documents, website resources, and notification of public meetings; and
WHEREAS, the preparation, adoption, and implementation of the Housing Element required a diligent effort to include all economic segments of the community; and WHEREAS, the City conducted public outreach and provided opportunities for public review and comment in accordance with Government Code Section 65585 and other applicable requirements; and
WHEREAS, in accordance with Government Code Section 65585(b), on November 5, 2024 the City of Patterson posted the draft Housing Element and requested public comment for a 30-day review period ending on December 5, 2024; and
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WHEREAS, on February 3, 2025, after responding to public comments, the City of Patterson submitted the draft Housing Element to the State Department of Housing and Community Development (HCD) for its review; and
WHEREAS, on May 2, 2025, the City of Patterson received a letter from HCD providing its findings indicating revisions to the draft Housing Element were necessary to comply with State housing law; and
WHEREAS, on August 6, 2025, the City of Patterson posted a revised draft Housing Element responding to HCD’s comments and findings for an extended public review and comment period from August 6 to August 22, 2025; and
WHEREAS, on October 3, 2025, after responding to public comments, the City of Patterson re-submitted the draft Housing Element to the HCD for its review; and WHEREAS, the Housing Element was submitted to HCD for review, and on December 2, 2025, HCD determined that the Housing Element met the statutory requirements of State Housing Element law; and
WHEREAS, the City has evaluated the potential environmental impacts of the proposed General Plan Amendment to adopt the 2023–2031 Housing Element and determined that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption); and WHEREAS, adoption of the Housing Element does not approve or entitle any specific development project, and any future development will be subject to formal development applications, technical studies, and further evaluation in accordance with CEQA and City plans, ordinances, and standards. The 6th Cycle Housing Element does not involve any physical changes to the environment, and there is no foreseeable, reasonable possibility of an adverse significant effect to the environment; and
WHEREAS, the City has prepared a Notice of Exemption and proposes to file the Notice of Exemption in accordance with CEQA requirements; and
WHEREAS, the Planning Commission of the City of Patterson conducted a duly noticed public hearing on April 23, 2026, and considered all oral and written testimony, the staff report, and all associated materials. Following the public hearing, the Planning Commission adopted Resolution No. 2026-06 recommending the City Council adopt the proposed General Plan Amendment to adopt the 2023-2031 6th Cycle Housing Element; and WHEREAS, the City Council of the City of Patterson conducted a duly noticed public hearing on May 19, 2026, and received the staff report and presentation, considered the recommendation of the Planning Commission and all oral and written testimony, and discussed the matter; and
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WHEREAS, based on its independent review and analysis, the staff analysis and report, oral and written testimony, the City Council finds, after due study, deliberation and public hearing that the following circumstances exist:

1. The proposed General Plan Amendment to adopt the 2023–2031 6th Cycle Housing Element is in the public interest and the General Plan as amended will remain internally consistent.

2. The proposed General Plan Amendment to adopt the 2023–2031 Housing Element is consistent with State Housing Element law (Government Code Section 65580 et seq.).

3. The proposed Housing Element identifies adequate sites, policies, and programs to accommodate the City’s Regional Housing Needs Allocation and addresses the housing needs of all economic segments of the community.

4. The proposed Housing Element is consistent with the goals, policies, and framework of the Patterson General Plan.

5. The proposed Housing Element adoption is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption).

NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Patterson hereby approves the following:

1. General Plan Amendment to adopt the 2023–2031 Housing Element; and

2. Make a finding that the project is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3); and

3. Authorize City staff to file a Notice of Exemption with the Stanislaus County Clerk and State Clearinghouse.

AYES:

NOES:

EXCUSED:

APPROVED:
______________________________
Michael Clauzel
Mayor of the City of Patterson
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ATTEST:
____________________________
Aracely Alegre
City Clerk of the City of Patterson
I hereby certify that the foregoing is a full, correct and true copy of a resolution passed by the City Council of the City of Patterson, a Municipal Corporation of the County of Stanislaus, State of California, at a regular meeting held on the 19th day of May 2026, and I further certify that said resolution is in full force and effect and has never been rescinded or modified.

DATED:
____________________________________
City Clerk of the City of Patterson
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HCD Revised Draft
2023-2031
6th Cycle Housing Element
City of Patterson
October 3, 2025
Prepared by
EMC Planning Group
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HCD REVISED DRAFT
2023-2031
6 TH CYCLE HOUSING ELEMENT

CITY OF PATTERSON

PREPARED FOR
City of Patterson
Bryan Stice, Community Development Director
1 Plaza
P.O. Box 667
Patterson, CA 95363
Tel 209.895.8074
[email protected]

PREPARED BY
EMC Planning Group Inc.
601 Abrego Street
Monterey, CA 93940
Tel 831.649.1799
Fax 831.649.8399
www.emcplanning.com
October 3, 2025
This document was produced on recycled paper.

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EMC Planning Group Inc.

Table of Contents
CITY OF PATTERSON 2023–2031 HOUSING ELEMENT............................................ ES-1 Executive Summary................................................................................................................. ES-1

1.0 HOUSING NEEDS ASSESSMENT.......................................................................... 1-1

1.1 Population Trends and Characteristics .......................................................................... 1-1

1.2 Employment Trends ........................................................................................................ 1-4

1.3 Household Characteristics ............................................................................................... 1-6

1.4 Housing Inventory and Market Characteristics ......................................................... 1-13

1.5 Overview of Housing Needs ........................................................................................ 1-22

1.6 Special Needs Groups .................................................................................................... 1-25

1.7 Publicly Assisted Housing ............................................................................................. 1-44

2.0 HOUSING CONSTRAINTS ASSESSMENT.............................................................. 2-1

2.1 Governmental Constraints .............................................................................................. 2-1

2.2 Non-Governmental Constraints .................................................................................. 2-44

2.3 Environmental Constraints ........................................................................................... 2-48

2.4 Infrastructure Constraints ............................................................................................. 2-51

3.0 HOUSING ACTION PLAN..................................................................................... 3-1

3.1 Goals, Policies and Programs ......................................................................................... 3-1

4.0 HOUSING RESOURCES AND SITES INVENTORY................................................ 4-1

4.1 Regional Housing Needs Allocation (RHNA) ............................................................. 4-1

4.2 Capacity to Accommodate 2023-2031 RHNA............................................................. 4-2

4.3 Residential Site Inventory................................................................................................ 4-7

4.4 Availability of Infrastructure and Services.................................................................. 4-33

4.5 Environmental Constraints ........................................................................................... 4-35

4.6 Financial Resources for Affordable Housing ............................................................. 4-37

4.7 Local Housing Developers ............................................................................................ 4-38

4.8 Administrative Resources.............................................................................................. 4-40 Packet Pg. 1259
EMC Planning Group Inc.

Appendices
Appendix A Assessment of Fair Housing
Appendix B Review of 2015-2023 Housing Element
Appendix C Public Participation and Outreach
Tables
Table 1-1 Regional Population Trends (1990-2024) .................................................................. 1-1 Table 1-2 Population Growth Trends (1990-2024), City of Patterson.................................... 1-2 Table 1-3 Age Distribution (2000-2022), City of Patterson...................................................... 1-2 Table 1-4 Racial and Ethnic Composition (2010-2022), City of Patterson and Stanislaus County ........................................................................................................... 1-3 Table 1-5 Employment by Industry (2022), City of Patterson and Stanislaus County ......... 1-4 Table 1-6 Labor Force Trends (2010-2022), City of Patterson................................................ 1-5 Table 1-7 Major Employers, 2022, City of Patterson ................................................................ 1-6 Table 1-8 Total Households (2010-2022), City of Patterson and Stanislaus County............ 1-6 Table 1-9 Household Size Distribution (2010-2022), City of Patterson ................................. 1-7 Table 1-10 Average Household Size by Tenure (2010-2022), City of Patterson ..................... 1-7 Table 1-11 Households by Type (2010-2022), City of Patterson............................................... 1-8 Table 1-12 Occupied Units by Tenure (2010-2022), City of Patterson..................................... 1-9 Table 1-13 Household Income by Tenure (2022), City of Patterson ...................................... 1-10 Table 1-14 Median Household Income (2010-2022), City of Patterson ................................. 1-11 Table 1-15 Distribution by Income Group (2016-2020), City of Patterson and Stanislaus County ......................................................................................................... 1-12 Table 1-16 Housing Unit Growth by Jurisdiction (2010-2020)................................................ 1-13 Table 1-17 Housing Inventory by Unit Type (2010-2022), City of Patterson........................ 1-14 Table 1-18 Unit Type by Tenure (2022), City of Patterson....................................................... 1-14 Table 1-19 Unit Size by Tenure (2022), City of Patterson ........................................................ 1-15 Table 1-20 Occupancy Status (2010-2022), City of Patterson.................................................. 1-16 Table 1-21 Tenure by Age of Housing Stock (2022), City of Patterson ................................. 1-17 Table 1-22 Units Lacking Plumbing or Complete Kitchens (2022), City of Patterson......... 1-18 Table 1-23 Median Home Prices (2015-2024)............................................................................. 1-19 Table 1-24 Average Rent by Unit Size (2023), City of Patterson............................................. 1-20 Table 1-25 Housing Affordability Matrix (2024), Stanislaus County....................................... 1-21 Table 1-26 Housing Cost Burden by Tenure (2020), City of Patterson .................................. 1-23 Table 1-27 Overcrowding by Tenure (2010-2022), City of Patterson and Stanislaus County ........................................................................................................................... 1-24 Table 1-28 Regional Housing Needs Allocation (2023-2031), City of Patterson .................. 1-25 Table 1-29 Extremely Low-Income Households (2016-2020), City of Patterson ................. 1-26 Packet Pg. 1260
EMC Planning Group Inc.

Table 1-30 Householders 65 Years and Older (2010-2022), City of Patterson and Stanislaus County ........................................................................................................ 1-28 Table 1-31 Householders by Tenure and Age (2010-2022), City of Patterson...................... 1-28 Table 1-32 Disability Characteristics, City of Patterson............................................................ 1-32 Table 1-33 Large Households by Tenure (2022), City of Patterson ........................................ 1-34 Table 1-34 Housing Stock by Number of Bedrooms (2022), City of Patterson ................... 1-34 Table 1-35 Households with Children by Type and Poverty (2022), City of Patterson ....... 1-36 Table 1-36 Farmworkers, 2022, City of Patterson and Stanislaus County ............................. 1-39 Table 1-37 Homeless Population (2018-2024), City of Patterson and Stanislaus County ... 1-41 Table 1-38 Housing Inventory Count (2023), Turlock, Modesto/Stanislaus County CoC . 1-42 Table 1-39 Publicly Assisted Affordable Housing Units (2024), City of Patterson .............. 1-45 Table 2-1 General Plan Residential Land Use Designations.................................................... 2-2 Table 2-2 Existing Residential Development Standards by Zoning District ......................... 2-4 Table 2-3 Existing Residential Development Standards – Distance Between Buildings..... 2-5 Table 2-4 Existing Residential Parking Requirements............................................................... 2-7 Table 2-5 Proposed Changes to Development Standards, City of Patterson ........................ 2-8 Table 2-6 Medium Density Residential Development Standards (ZBMP).......................... 2-13 Table 2-7 High Density Residential Development Standards (ZBMP) ................................ 2-15 Table 2-8 Mixed-Use Development Standards (ZBMP) ......................................................... 2-17 Table 2-9 Housing Types Permitted in Patterson’s Zoning Districts ................................... 2-20 Table 2-10 Planning Entitlement and Building Fees, City of Patterson ................................. 2-33 Table 2-11 Residential Development Impact Fees (2024), City of Patterson........................ 2-35 Table 2-12 Example of Total Residential Development Impact Fees (2021), City of Patterson....................................................................................................................... 2-36 Table 2-13 Total Fee Comparisons with Nearby Jurisdictions ................................................ 2-37 Table 2-14 Typical Permit Processing Times.............................................................................. 2-39 Table 2-15 Permit Streamlining Act – Processing Times.......................................................... 2-41 Table 2-16 Vacant Lot Sales, Patterson (2023-2024)................................................................. 2-46 Table 2-17 Mortgage Lending Approval Rates (2023), City of Patterson .............................. 2-48 Table 2-18 Programs and Incentives for Residential Properties in Stanislaus County ......... 2-55 Table 2-19 Federally Funded Programs and Incentives for Residential Properties .............. 2-57 Table 3-1 Quantified Objectives................................................................................................... 3-3 Table 3-2 Proposed General Plan and Zoning Amendments to Residential Development Standards ............................................................................................. 3-12 Table 3-3 Sites Requiring General Plan Land Use Change and Zoning Amendment ........ 3-14 Table 3-4 Sites Subject to By-Right Approval Provisions with 20% Affordable Units ..... 3-16 Table 3-5 Affirmatively Furthering Fair Housing Action Matrix .......................................... 3-48 Table 4-1 City of Patterson Regional Housing Needs Allocation (2023-2031)..................... 4-1 Table 4-2 Capacity to Accommodate 2023-2031 RHNA......................................................... 4-3 Table 4-3 Pipeline Projects............................................................................................................ 4-5 Packet Pg. 1261
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Table 4-4 Zacharias Development Area Residential Land Uses............................................ 4-10 Table 4-5 Zacharias Development Area Realistic Capacity .................................................... 4-14 Table 4-6 Baldwin Ranch South Development Area Residential Land Uses ....................... 4-18 Table 4-7 Baldwin Ranch South Development Area Realistic Capacity ............................... 4-20 Table 4-8 Vacant and Underutilized Sites.................................................................................. 4-22 Table 4-9 Sites Requiring Zoning Amendment ........................................................................ 4-23 Table 4-10 Redevelopment Trends of Non-Vacant Sites throughout Stanislaus County .... 4-24 Table 4-11 Non-Vacant Sites Identified for Residential Use.................................................... 4-26 Table 4-12 Typical Densities of Multi-Family Projects in Stanislaus County ......................... 4-31 Table 4-13 Affordable Housing Providers in Patterson ............................................................ 4-39 Figures
Figure 1-1 Household Income Trends (2010-2022), City of Patterson.................................. 1-11 Figure 4-1 Identified Housing Opportunity Sites ........................................................................ 4-9 Figure 4-2 Zacharias Development Area Land Use Diagram.................................................. 4-16 Packet Pg. 1262
Executive Summary ES-1 EMC Planning Group
City of Patterson 6
th Cycle Housing Element Update HCD Revised Draft October 2025 City of Patterson
2023–2031 Housing Element
Executive Summary
The City of Patterson’s 2023-2031 Housing Element provides a comprehensive framework to address housing needs, improve living conditions, and guide future housing development. It establishes key goals, policies, and actions to enhance housing opportunities and ensure alignment with state requirements. The Housing Element serves the following critical functions:
▪ Evaluating the city’s housing conditions and assessing the needs of its residents; ▪ Implementing citywide goals, policies, and programs to address housing challenges; and ▪ Developing a strategic plan to accommodate projected housing demand over the next eight years.

The City remains committed to expanding access to safe, high-quality housing for residents across all income levels. The Housing Element outlines targeted strategies to overcome barriers to housing production, address identified shortages, and ensure equitable distribution of affordable housing.

Key approaches include fostering a diverse housing stock, maximizing the potential of infill and underutilized sites, and prioritizing new housing development near transit and employment hubs.

These efforts aim to advance the City’s housing goals and uphold its commitment to affirmatively furthering fair housing.

For the 2023-2031 6th housing cycle, the City of Patterson has been assigned a Regional Housing Needs Allocation (RHNA) of 3,716 units, distributed across very low-, low-, moderate-, and above moderate-income categories.1 Additionally, the City must address a shortfall of 196 lower-income units from the 5th cycle, bringing the total RHNA obligation to 3,912 units. In accordance with Government Code Section 65583, the Housing Element provides a comprehensive analysis of current and projected housing needs, evaluates constraints to development, inventories land available for residential use, and establishes targeted policies and programs to support equitable and sustainable housing development.
1 Income limits for each category are established annually by HCD and can vary from County to County. https://www.hcd.ca.gov/sites/default/files/docs/grants-and-funding/income-limits-2024.pdf Packet Pg. 1263
Executive Summary ES-2 EMC Planning Group
City of Patterson 6
th Cycle Housing Element Update HCD Revised Draft October 2025 Chapter 1, Housing Needs Assessment, provides a detailed analysis of the demographic, economic, and housing trends that influence housing demand in the City of Patterson. The assessment identifies critical needs for family-oriented and affordable housing, senior accommodations, and housing solutions for special needs populations, including farmworkers and individuals experiencing homelessness.

Patterson’s population is predominantly Hispanic/Latino, with 73 percent of households owning their homes. The median household income in 2022 was $86,031. Housing development has increased by 6 percent since 2010, while vacancy rates have declined significantly, from 15 percent in 2010 to 5 percent in 2022. The city’s housing stock is significantly composed of single-family homes (90 percent), with multi-family units representing 8 percent of total housing. Median home prices have significantly increased by 39 percent between 2019 and 2024, from $378,520 to $528,330. This increase highlights escalating housing demand and affordability challenges, underscoring the need for targeted housing strategies.

Chapter 2, Constraints Assessment, examines potential barriers that may impact housing development in Patterson, including governmental regulations, market dynamics, environmental factors, and infrastructure limitations. The analysis identifies key obstacles that constrain housing production and affordability, such as limiting zoning ordinances, lengthy permit processes, and infrastructure capacity issues.

To address these challenges, the chapter recommends targeted strategies, including revising zoning ordinances to promote higher-density and diverse housing types, streamlining permit approval processes to reduce delays, and implementing measures to mitigate potential environmental and infrastructure constraints. These recommendations aim to facilitate more efficient and affordable housing development while ensuring compliance with local and state requirements.

Chapter 3, Housing Action Plan, outlines strategic goals to increase housing availability, preserve the existing housing stock, promote sustainability, improve affordability, and raise awareness of housing resources. The plan emphasizes actionable steps to address Patterson’s housing needs and includes the following key strategies:
▪ Facilitating development on underutilized and vacant sites through increased residential densities and reduced height limits and parking standards in the High Density Residential, Downtown Core, and Neighborhood Commercial Zoning Districts;
▪ Promoting affordable housing projects near transit hubs and employment centers; ▪ Streamlining regulatory processes to reduce costs and expedite housing production; and ▪ Permitting diverse housing types in accordance with state law.

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Executive Summary ES-3 EMC Planning Group
City of Patterson 6
th Cycle Housing Element Update HCD Revised Draft October 2025 The plan establishes quantified objectives, targeting the production of 3,912 housing units across all income levels during the planning period. These objectives are supported by policies that prioritize vulnerable populations and integrate sustainable development practices, ensuring an equitable and inclusive approach to housing in Patterson.

Chapter 4, Housing Resources and Sites Inventory, identifies land available for residential development and demonstrates the City’s capacity to meet housing demand. In total, 16 sites have been identified to fulfill the City’s RHNA. Key resources include major projects such as the Zacharias and Baldwin Ranch South Master Plan areas and various infill sites across the city. These sites, along with pipeline projects (entitled projects) and projected accessory dwelling units (ADUs), provide a 47 percent net surplus of housing capacity beyond the City’s net RHNA.

The chapter also outlines financial and administrative resources available to support these efforts, ensuring the City’s readiness to accommodate future housing growth and address community needs.

Appendix A, Assessment of Fair Housing, provides a detailed analysis of segregation patterns, areas of poverty and affluence, and disparities in access to opportunities within Patterson. The document also identifies key actions to affirmatively further fair housing and promote equitable access to housing and resources.

Key actions to enhance mobility for low-income residents include expanding public transit, improving pedestrian and bike infrastructure, and providing bike parking and transit passes to increase access to employment and services. Efforts to increase affordable housing in highopportunity areas focus on prioritizing multi-family developments in well-resourced neighborhoods, providing development concessions, density bonuses, and leveraging state and federal funding like Low-Income Housing Tax Credits (LIHTCs) to ensure affordable units are integrated with quality schools and job centers.

To preserve existing affordable housing, the City plans to implement anti-displacement measures, utilize inclusionary housing funds to maintain affordable units, and conduct regular inspections of older properties to ensure habitability. Community revitalization efforts in low-resource areas will target infrastructure improvements in neighborhoods in the northeastern and southeastern quadrants, enhancing public amenities and supporting workforce development to increase job access and economic mobility. Additionally, zoning amendments will allow for more diverse housing types and greater density.

Finally, the City will focus on addressing historical segregation through inclusionary housing requirements, capital improvement projects, and educational campaigns to raise awareness of fair housing rights. Collaborations with organizations such as the Patterson Family Resource Center, Helping Others Sleep Tonight (HOST), Naomi’s House, Stanislaus Regional Housing Authority, and Project Sentinel will enhance outreach and provide support for those facing discrimination.

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Executive Summary ES-4 EMC Planning Group
City of Patterson 6
th Cycle Housing Element Update HCD Revised Draft October 2025 Data-driven tools, like the HCD AFFH Data Viewer, will be used to identify and prioritize areas in need of intervention, ensuring that all Patterson residents have equitable access to housing opportunities and resources.

Appendix B, Review of the 2015-2023 Housing Element, provides a comprehensive evaluation of the City’s 5
th cycle housing policies and programs, highlighting key achievements and identifying opportunities to strengthen future housing initiatives. Notable accomplishments include the successful rezoning of 13 acres to High-Density Residential; consistent updates to the City’s vacant land inventory to guide development efforts; and the implementation of incentives, such as density bonuses, development concessions, and fee reductions, which supported projects like the 66-unit affordable Stonegate Village development.

The review also identified areas for enhancement, including opportunities to further promote lot consolidation by offering more tailored incentives to developers. Additionally, programs like firsttime homebuyer assistance highlighted the need for expanded resources to better align with rising housing costs. Efforts to streamline zoning code updates underscore the importance of dedicated staffing to support these specialized initiatives.

Building on these insights, the 6
th Cycle Housing Element incorporates targeted strategies to advance housing goals. A primary challenge in implementing the 5th cycle housing element was largely due to a lack of dedicated staffing for housing priorities. To address this, the City will hire 1.0 Full-Time Equivalent (FTE) in the Community Development Department to focus on housing issues and expand outreach to the development community. This dedicated role is expected to enhance efficiency, streamline project implementation, and foster stronger collaboration with developers to meet housing goals.

Appendix C, Public Participation, highlights the City’s comprehensive outreach efforts to engage a diverse range of stakeholders through workshops, surveys, and tribal consultations. Community feedback played a pivotal role in shaping policies and programs, with a focus on affordability, accessibility, and sustainability. Key concerns raised by participants included the need to increase affordability of accessory dwelling units, address critical infrastructure challenges, and expand affordable housing options to meet the needs of all residents. This appendix will be updated continuously throughout the Housing Element update process to ensure it reflects ongoing community engagement and evolving input from stakeholders.

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Section 1.0 Housing Needs Assessment 1-1 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025

1.0 Housing Needs Assessment
This section analyzes demographic and housing characteristics that influence the demand for and availability of housing. The analyses form a foundation for establishing policies and programs that seek to address identified housing needs.

1.1 Population Trends and Characteristics
Housing needs are influenced by population and employment trends. This section provides a summary of the changes to the population size, age, and racial/ethnic composition of the City of Patterson. The data for this analysis was compiled primarily from the 2000, 2010, and 2020 U.S.

Census, the 2016-2020 American Community Survey, the 2022 California Department of Finance (DOF), and estimates supplemented by City and regional studies.

Historical, Existing, and Forecast Growth
The City of Patterson is one of nine incorporated cities within Stanislaus County. According to the DOF estimates, Stanislaus County’s population was 548,744 in 2024. The population in Stanislaus County between 2010 and 2024 increased by approximately 3 percent and has slowed considerably since 1990 (a 41 percent increase between 1990 and 2010). Table 1-1 presents Stanislaus County and surrounding counties and their respective population trends. Table 1-2 presents population growth trends in Patterson between 1990 and 2024. Since 1990, Patterson’s population has increased significantly, especially between 2000 and 2010. Population growth in the city has slowed since the 2020 COVID-19 pandemic.

Table 1-1 Regional Population Trends (1990-2024)
County 1990 2000 2010 2024
Percent Change
1990-2000 2000-2010 2010-2024
Stanislaus 375,256 447,124 530,584 548,744 19.2% 18.7% 3.4% Merced 179,814 205,289 258,495 287,303 14.2% 25.9% 11.1% San Joaquin 484,371 579,160 694,293 791,408 19.6% 19.9% 14.0% SOURCE: U.S. Census, 1990-2010; State Department of Finance Population and Housing Estimates, 2024 Packet Pg. 1267
Section 1.0 Housing Needs Assessment 1-2 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-2 Population Growth Trends (1990-2024), City of Patterson Year Population Numerical Change Percent Change
1990 8,626 - -
2000 10,959 19,585 27.0%
2010 21,251 10,292 93.9%
2020 23,074 1,823 8.6%
2024 24,790 1,716 7.4%
SOURCE: U.S. Census, 1990-2010; State Department of Finance Population and Housing Estimates, 2024 Age Composition
The age profile of Patterson residents is presented in Table 1-3. As shown, young families have remained predominant in Patterson since 2000. This indicates a need for family friendly housing units that can accommodate three or more bedrooms. Similar to national trends, Patterson’s population is aging, which will lead to demand for senior housing. Since 2000, the percentage of senior population (65 years and older) in the city has increased slightly (approximately 1 percent).

Table 1-3 Age Distribution (2000-2022), City of Patterson Age Group
2000 2010 2020 2022
Number Percent Number Percent Number Percent Number Percent Under 5 years 1,061 9.1% 1,809 9.5% 2,157 9.7% 2,172 9.2% 5 to 9 years 1,222 10.5% 1,798 9.4% 1,815 8.1% 1,687 7.1% 10 to 14 years 1,225 10.6% 1,973 10.3% 2,084 9.3% 2,200 9.3% 15 to 19 years 1,098 9.5% 1,923 10.1% 1,997 9.0% 2,329 9.8% 20 to 24 years 820 7.1% 1,151 6.0% 1,486 6.7% 1,804 7.6% 25 to 34 years 1,600 13.8% 2,477 13.0% 2,686 12.0% 2,940 12.4% 35 to 44 years 1,880 16.2% 2,869 15.0% 3,420 15.3% 3,781 16.0% 45 to 54 years 1,197 10.3% 2,526 13.2% 3,053 13.7% 2,754 11.6% 55 to 59 years 373 3.2% 685 3.6% 1,191 5.3% 1,223 5.2%
60 to 64 years 290 2.5% 558 2.9% 561 2.5% 850 3.6%
65 to 74 years 450 3.9% 745 3.9% 1,017 4.6% 960 4.1%
75 to 84 years 285 2.5% 456 2.4% 540 2.4% 619 2.6%
85 years+ 105 0.9% 140 0.7% 302 1.4% 359 1.5%
65 years+ 840 7% 1,341 7.0% 1,859 8.3% 1,938 8.2%
Total 11,606 100% 19,110 100% 22,309 100% 23,678 100%
SOURCE: U.S. Census, ACS 5-Year Estimates, 2010, 2020, 2022; U.S. Census, 2000 Packet Pg. 1268
Section 1.0 Housing Needs Assessment 1-3 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Race and Ethnicity
The City’s demographics have changed slightly in the last decade. In 2010, approximately 56 percent of Patterson’s residents were Hispanic or Latino (Table 1-4), the largest proportion among all racial/ethnic groups in the city. Between 2010 and 2022, the percent of Hispanic or Latino population increased by approximately 12 percentage points. As of 2022, Hispanic or Latino and Non-Hispanic White populations comprise the largest racial/ethnic groups. This increase in the proportion of Hispanic or Latino population mirrors a countywide trend, though the proportion of Hispanic or Latino residents citywide was much higher at approximately 68 percent in 2022.

Whereas, Stanislaus County’s Hispanic or Latino population was approximately 49 percent.

Table 1-4 Racial and Ethnic Composition (2010-2022), City of Patterson and Stanislaus County
Ethnic
Group
2010 2020 2022
City of
Patterson
Stanislaus
County
City of
Patterson
Stanislaus
County
City of
Patterson
Stanislaus
County
Total % Total % Total % Total % Total % Total %
Non-Hispanic
White 5,411 28.3% 245,803 48.2% 4,566 20.5% 222,962 40.8% 4,171 17.6% 212,780 38.5% Black/African
American 1,363 7.1% 13,230 2.6% 1,115 5.0% 15,869 2.9% 1,129 4.8% 14,902 2.7% Hispanic or
Latino 10,750 56.3% 206,983 40.6% 14,872 66.7% 256,424 46.9% 16,146 68.2% 268,427 48.6% Am. Ind./
Alaska Native 73 0.4% 3,126 0.6% 1 0.0% 2,241 0.4% 1 0.0% 2,245 0.4% Asian 759 4.0% 26,026 5.1% 1,178 5.3% 31,044 5.7% 1,032 4.4% 31,968 5.8% Native
Hawaiian and
PI
468 2.4% 3,101 0.6% 149 0.7% 3,012 06% 100 0.4% 2,975 0.5% Other 12 0.1% 696 0.1% 28 0.1% 1,164 0.2% 254 1.1% 1,782 0.3% Two or more
races
274 1.4% 10,717 2.1% 400 1.8% 13,519 2.5% 845 3.6% 16,984 3.1% Total 19,110 100% 509,682 100% 22,309 100% 546,235 100% 23,678 100% 552,063 100% SOURCE: U.S. Census, ACS 5-Year Estimates, 2010, 2020, 2022; U.S. Census, 2000 Packet Pg. 1269
Section 1.0 Housing Needs Assessment 1-4 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025

1.2 Employment Trends
Housing needs are influenced by employment trends. Significant employment opportunities within the city can lead to growth in demand for housing in proximity to jobs. However, regional job growth is expected to have a greater impact. The 2021 Stanislaus County Demographic and Employment Forecast reported that Stanislaus County will continue to see population and housing growth associated with job growth in the region.

The quality and/or pay of available employment can determine the need for various housing types and prices. According to 2022 ACS Census 5-year estimates, in 2022, the two industries with the largest percentage of employed Patterson residents were Educational, Healthcare, and Social Services (20 percent) and Construction (15 percent), followed by Retail Trade (13 percent) and Manufacturing (11 percent) (Table 1-5). Together, Manufacturing, Retail Trade, and Transportation and Warehousing, and Utilities comprise 33 percent of employment in Patterson. Other industries generally represented similar shares of employed residents, all of which were less than 10 percent.

Educational, Healthcare, and Social Services also had the largest proportion of employed residents in the County (21 percent). However, in the County, the second largest employment industry is Manufacturing (12 percent).

Table 1-5 Employment by Industry (2022), City of Patterson and Stanislaus County Industry
Patterson Stanislaus County
Employees Percent Employees Percent
Agriculture, forestry, fishing and hunting, and mining 374 4% 12,069 5% Construction 1,534 15% 21,016 9%
Manufacturing 1,141 11% 28,802 12%
Wholesale trade 219 2% 7,025 3%
Retail trade 1,333 13% 26,462 11%
Transportation and warehousing, and utilities 886 9% 18,288 8% Information 84 1% 2,014 1%
Finance and insurance, and real estate and rental and leasing 187 2% 8,357 4% Professional, scientific, and management, and administrative and waste management services 836 8% 20,291 9%
Educational services, and healthcare and social assistance 2,075 20% 50,815 21% Arts, entertainment, and recreation, and accommodation and food services 820 8% 20,190 9%
Other services, except public administration 334 3% 11,311 5% Public administration 342 3% 10,470 4%
Total 10,165 100% 237,110 100%
SOURCE: U.S. Census, ACS 5-Year Estimates, Table DP03, 2022 Packet Pg. 1270
Section 1.0 Housing Needs Assessment 1-5 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-6 shows the Patterson labor force, which has increased by nearly 2,600 from 2010 to 2022.

In 2021, the labor force in Patterson peaked, reaching 11,272 employed residents, the largest labor force over the decade. However, in 2022, the labor force dropped by approximately 289 employees.

During this period, 2010 to 2022, the unemployment rate in Patterson dropped by nearly half from 12 percent in 2010 down to 7 percent in 2022. The trend seems to suggest that the COVID-19 pandemic had little effect on employment in Patterson.

Table 1-6 Labor Force Trends (2010-2022), City of Patterson Year Labor Force Employment Unemployment Unemployment Rate 2010 8,388 7,357 1,003 12%
2011 9,009 7,758 1,228 14%
2012 8,889 7,651 1,222 14%
2013 9,040 7,595 1,445 16%
2014 9,289 7,857 1,432 15%
2015 9,481 8,100 1,318 14%
2016 9,979 8,541 1,382 14%
2017 10,342 9,116 1,185 11%
2018 10,299 9,256 995 10%
2019 10,492 9,513 926 9%
2020 10,827 9,850 977 9%
2021 11,272 10,461 811 7%
2022 10,983 10,165 818 7%
SOURCE: U.S. Census, ACS 5-Year Estimates, Table DP03, 2010-2022 According to the 2022-2027 Stanislaus County Comprehensive Economic Development Strategy, Patterson’s major employers are largely comprised of warehousing, distribution and logistics, and retail industries (Table 1-7). This differs slightly from 2022 ACS Census 5-year estimates, which reports Educational Services, Healthcare, and Social Assistance as the largest industry employer (Table 1-5).

This is likely the result of Patterson’s quickly expanding business park, providing opportunities for retailers, fulfillment centers, and light manufacturing companies. While historically Patterson has derived its economic vitality from agriculture and food processing, it has now become home to a rapidly expanding business park, which has increased the number of distribution, logistics, and warehousing centers. As shown in Table 1-7, Amazon has become the largest employer in the city, employing 850 people. Distribution centers now employ just over 1,900 people in the city.1 1 According to the Census Bureau, distribution centers are categorized as “warehousing” within the Transportation and Warehousing sector, meaning they are considered a type of warehouse for classification purposes. https://www.census.gov/naics/resources/archives/sect48-49.html Packet Pg. 1271
Section 1.0 Housing Needs Assessment 1-6 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-7 Major Employers, 2022, City of Patterson
Employer Description Employer Size Class
Amazon Fulfillment Center Distribution Center 850
Patterson Unified School District School District 662
CVS Caremark Distribution Center 484
W.W. Grainger Distribution Center 348
WalMart Retailer 241
City of Patterson City Government 208
Traina Dried Fruits Sun Dried Tomatoes/Fruits 150
Kohl’s Distribution Center Distribution Center 123
Restoration Hardware Distribution Center 122
Luchich-Santos Farms Apricot Farm 100
Kings Roofing Roofing 100
Save Mart Supermarkets Retail Grocer 94
SOURCE: Stanislaus County Comprehensive Economic Development Strategy, 2022-2027

1.3 Household Characteristics
This section describes Patterson household characteristics. The Census Bureau defines a household as all persons living in a single housing unit, whether or not they are related. One person living alone is considered a household, as is a group of unrelated people living in a single housing unit.

Household Type
As shown in Table 1-8, the number of households in Patterson increased marginally by about 3 percent from 2010 to 2015. Similarly, Stanislaus County experienced a 3 percent increase in household growth during this period. However, from 2015 to 2020, the number of households in Patterson increased substantially by 9 percent, while the County saw a 3 percent increase. From 2020 to 2022, households in Patterson grew by 2 percent. The County experienced similar growth, about 1 percent.

Table 1-8 Total Households (2010-2022), City of Patterson and Stanislaus County County 2010 2015 2020 2022
Percent Change
2010-2015 2015-2020 2020-2022
City of Patterson 5,496 5,680 6,214 6,345 3% 9% 2%
Stanislaus County 163,841 169,196 174,826 175,747 3% 3% 1% SOURCE: U.S. Census, ACS 5-Year Estimates, Table S1101, 2010-2022 Packet Pg. 1272
Section 1.0 Housing Needs Assessment 1-7 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-9 reports the household size distribution in Patterson for 2010 and 2022. As shown, since 2010, the number of one-person renter-occupied households has significantly increased by 133 percent, while the number of four-or-more-person renter-occupied households has significantly decreased by 43 percent. Table 1-10 reports the average household size according to tenure in Patterson for 2010 and 2022. From 2010 to 2022, the average household size of owner-occupied households increased by 19 percent, whereas that of renter-occupied households decreased by 16 percent.

Table 1-9 Household Size Distribution (2010-2022), City of Patterson 2010
Household Size Total
Households Percent Renter Households Percent Owner Households Percent 1 Person 951 17% 222 13% 732 20%
2 Persons 1,105 20% 238 14% 867 23%
3 Persons 802 15% 202 12% 598 16%
4+ Persons 2,638 48% 1,098 62% 1,539 41%
Total 5,496 100% 1,760 100% 3,736 100%
2022
1 Person 889 14% 516 31% 373 8%
2 Persons 946 15% 92 5% 854 18%
3 Persons 1,197 19% 451 27% 746 16%
4+ Persons 3,313 52% 629 37% 2,684 58%
Total 6,345 100% 1,688 100% 4,657 100%
SOURCE: U.S. Census, ACS 5-Year Estimates, Table S2501, 2010-2022 Table 1-10 Average Household Size by Tenure (2010-2022), City of Patterson Household Tenure 2010 2022
Percent Change
2010-2022
Owner-Occupied Household 3.29 3.91 19%
Renter-Occupied Household 3.84 3.22 -16%
SOURCE: U.S. Census, ACS 5-Year Estimates, Table DP04, 2010-2022 These trends indicate several demographic and housing shifts in Patterson between 2010 and 2022.

The significant rise in one-person renter-occupied households (133 percent increase) suggests a growing trend of individuals living alone, possibly due to seniors preferring independent living or an influx of single professionals. Meanwhile, the significant decrease in four-or-more-person renterPacket Pg. 1273 Section 1.0 Housing Needs Assessment 1-8 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 occupied households (-43 percent) indicates a reduction in larger families renting homes, possibly reflecting changes in housing affordability, availability of larger rental units, or shifts in family structures. The average household size for owner-occupied homes increased by 19 percent, suggesting more people living in owned homes, potentially due to multigenerational living arrangements or more families purchasing homes. Conversely, the average household size for renteroccupied homes decreased by 16 percent, aligning with the increase in one-person households and potentially indicating a higher number of smaller rental units or a trend towards smaller family sizes among renters. These changes highlight evolving housing patterns in Patterson, with implications for housing policy, urban planning, and community services.

The Census defines a family household as “two or more people (one related by birth, marriage, or adoption residing in the same housing unit.” Table 1-11 reports household data in Patterson from 2010 to 2022. Over this period, the total number of households increased from 5,496 in 2010 to 6,345 in 2022. Family households consistently made up the majority, growing from 4,383 (80 percent) in 2010 to 5,321 (84 percent) in 2022. The number of married-couple families showed a slight fluctuation but remained a majority among family households. Notably, households with female householders increased significantly, particularly from 548 in 2010 to 817 in 2022. Families with children saw a relative decrease from 55 percent in 2010 to 51 percent in 2022. Non-family households remained relatively stable at around 16 to 20 percent of the total, with a slight decrease in householders living alone and those aged 65 or older. The average household size increased from

3.47 in 2010 to 3.73 in 2022.

Table 1-11 Households by Type (2010-2022), City of Patterson Household
2010 2015 2020 2022
Number Percent Number Percent Number Percent Number Percent Family Households 4,383 80% 4,546 80% 5,201 84% 5,321 84% Married-Couple Family 3,235 59% 3,193 56% 3,845 62% 3,923 62% Other Family, Male Householder 600 11% 407 7% 607 10% 581 9% Other Family, Female
Householder 548 10% 946 17% 749 12% 817 13%
Families with Children 2,786 55% 2,652 47% 3,275 53% 3,213 51% Non-Family Households 1,113 20% 1,134 20% 1,013 16% 1,024 16% Householder Living Alone 951 17% 897 16% 896 14% 889 14% Householder 65 years+ 302 6% 210 4% 310 5% 282 4%
Total Households 5,496 100% 5,680 100% 6,214 100% 6,345 100% Average Household Size 3.47 -- 3.69 -- 3.59 -- 3.73 --
SOURCE: U.S. Census, ACS 5-Year Estimates, Tables S1101, S2501, 2010-2022 Packet Pg. 1274
Section 1.0 Housing Needs Assessment 1-9 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 The data indicates a trend of increasing household numbers in Patterson, with a notable rise in family households, particularly those with female householders. This suggests a shift towards more diverse family structures and potentially more single-parent households. The relative stability of nonfamily households and the slight decrease in householders living alone and those aged 65 or older might indicate better support or integration into family units. The increase in average household size from 3.47 to 3.73 suggests that households are becoming larger, possibly due to multigenerational living or larger family units forming over time.

Household Tenure
Tenure preferences are primarily related to household income, composition, and age of the householder. Table 1-12 presents data on owner-occupied and renter-occupied housing in Patterson and Stanislaus County from 2010 to 2022. In Patterson, the proportion of owner-occupied housing remained relatively stable, increasing slightly from 68 percent in 2010 to 73 percent in 2022.

Conversely, renter-occupied housing decreased from 32 percent in 2010 to 27 percent in 2022. The total number of households in Patterson increased from 5,496 in 2010 to 6,345 in 2022. In Stanislaus County, owner-occupied housing saw a small decrease from 62 percent in 2010 to 61 percent in 2022, while renter-occupied housing marginally increased from 38 percent to 39 percent over the same period. The total number of households in the county also rose from 163,841 in 2010 to 175,747 in 2022. These trends indicate a gradual increase in homeownership in Patterson, contrasting with a slight increase in rental housing in the broader county.

Table 1-12 Occupied Units by Tenure (2010-2022), City of Patterson Owner-Occupied Housing Renter-Occupied Housing Total
Number Percent Number Percent Number Percent
2010
City of Patterson 3,736 68% 1,760 32% 5,496 100%
Stanislaus County 101,826 62% 62,015 38% 163,841 100%
2015
City of Patterson 3,626 64% 2,054 36% 5,680 100%
Stanislaus County 95,954 57% 73,242 43% 169,196 100%
2020
City of Patterson 4,246 68% 1,968 32% 6,214 100%
Stanislaus County 102,675 59% 72,151 41% 174,826 100%
2022
City of Patterson 4,657 73% 1,688 27% 6,345 100%
Stanislaus County 106,359 61% 69,388 39% 175,747 100%
SOURCE: U.S. Census, ACS 5-Year Estimates, Table S2501, 2010-2022 Packet Pg. 1275
Section 1.0 Housing Needs Assessment 1-10 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Household Income
Table 1-13 presents income distribution for owner-occupied and renter-occupied households in Patterson. Among owner-occupied households, the majority have incomes of $100,000 or more, with 24 percent earning $100,000 to $149,000 and 26 percent earning $150,000 or more. In contrast, the largest group among renter-occupied households earns less than $25,000, comprising 23 percent.

The median household income is higher for owner-occupied households at $100,084 compared to $73,686 for renter-occupied households, with the overall median household income being $86,031.

This data highlights a significant income disparity between owner-occupied and renter-occupied households, with a larger proportion of higher-income households owning their homes and a considerable portion of lower-income households renting.

Table 1-13 Household Income by Tenure (2022), City of Patterson Income
Owner-Occupied
Households
Renter-Occupied
Households Total
Number Percent Number Percent Number Percent
<$25,000 298 6% 389 23% 687 11%
$25,000 to $49,999 760 16% 150 9% 910 14%
$50,0000 to $74,999 642 14% 408 24% 1,050 17%
$75,000 to $99,999 625 13% 308 18% 933 15%
$100,000 to $149,000 1,127 24% 281 17% 1,408 22%
$150,000 or more 1,205 26% 152 9% 1,357 21%
Total 4,657 100% 1,688 100% 6,345 100%
Median Household Income $100,084 $73,686 $86,031
SOURCE: U.S. Census, ACS 5-Year Estimates, Table S2503, 2022 Figure 1-1 illustrates that the proportion of households earning higher incomes (higher than $100,000 has significantly increased since 2010, while the proportion of households earning less than $75,000 has decreased.

Table 1-14 reports median household income trends in 2010, 2015, 2020, and 2022 for the City of Patterson, Stanislaus County, and the State. As shown, during this period, median household income has steadily increased in the State. However, in 2015, both Patterson and the County experienced a slight drop in median household income. The City of Patterson saw an increase in median household income from $54,187 in 2010 to $86,031 in 2022. Stanislaus County experienced a similar upward trend, with median incomes rising from $51,094 in 2010 to $74,872 in 2022. The State of California also showed significant growth, with median household incomes increasing from $60,883 in 2010 to $91,905 in 2022. Overall, all three jurisdictions experienced substantial growth in median household income over the 12-year period, with the City of Patterson showing the most notable increase.

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Section 1.0 Housing Needs Assessment 1-11 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Figure 1-1 Household Income Trends (2010-2022), City of Patterson SOURCE: U.S. Census, ACS 5-Year Estimates, Table S2503, 2010-2022 Table 1-14 Median Household Income (2010-2022), City of Patterson Jurisdiction 2010 2015 2020 2022
City of Patterson $54,187 $53,542 $69,947 $86,031
Stanislaus County $51,094 $50,125 $62,873 $74,872
State of California $60,883 $61,818 $78,672 $91,905
SOURCE: U.S. Census, ACS 5-Year Estimates, Table S2503, 2010-2022 For the purposes of the Housing Element, the California Department of Housing and Community Development (HCD) has established five income groups based on Area Median Income (AMI). The AMI is the midpoint of a region’s income distribution, meaning that half of the households in a region earn more than the median and half earn less than the median. A household’s income is calculated by its gross income, which is the total income received before taxes and other payroll deductions. The five income groups established by HCD include the following:
2 2 State income definitions are different than federal income definitions. For federal housing programs, eligibility is established for households with incomes up to only 80 percent of the AMI. These households, under the federal definition, are considered moderate income. For housing plans that are required by federal regulations, such as the Consolidated Plan and Analysis of Impediments to Fair Housing Choice, the federal income definitions are used. 1,000 1385 1193 830 797 291 1,204 1187 579 1051 250 707 1352 1220 988 974 973 687 910 1,050 933 1,357
-
200
400
600
800
1,000
1,200
1,400
<$25,000 $25,000 -
$49,999
$50,000 -
$74,999
$75,000 -
$99,999
$100,000 -
$149,999
$150,000+
Number of households
Household Income
2010 2015 2020 2022
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Section 1.0 Housing Needs Assessment 1-12 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 ▪ Extremely Low Income: up to 30 percent of AMI;
▪ Very Low Income: 31-50 percent of AMI;
▪ Low Income: 51-80 percent of AMI;
▪ Moderate Income: 81- 120 percent AMI; and
▪ Above Moderate Income: >120 percent AMI.

Pursuant to state and federal regulations, the AMI refers to the median income for the Metropolitan Statistical Area. For the City of Patterson, this area refers to Stanislaus County. County median income, as published by HCD, must be used to establish income groups for the purpose of the Housing Element.

The U.S. Department of Housing and Urban Development (HUD) periodically receives "custom tabulations" of Census data from the Census Bureau that are largely not available through standard Census products. The most recent estimates are derived from the 2015-2019 ACS. This dataset, known as the "CHAS" data (Comprehensive Housing Affordability Strategy), demonstrates the extent of housing problems and housing needs, particularly for lower income households.

According to the CHAS data presented in Table 1-15, extremely low (8 percent) and very lowincome households (10 percent) represent approximately 18 percent of households in the city. An additional 16 percent were within the low-income (51-80 percent AMI) category. The majority of the city’s households (65 percent) were within the moderate/above moderate-income category (greater than 80 percent AMI). The proportion of moderate/above moderate-income households in the city was greater than that for the County as a whole (65 percent in the City versus 58 percent in the County).

Table 1-15 Distribution by Income Group (2016-2020), City of Patterson and Stanislaus County
Jurisdiction
Total
Households
Extremely LowIncome
(0-30%)
Very LowIncome
(31-50%)
Low-Income
(51-80%)
Moderate-
/Above
ModerateIncome (80%+)
Units Units Percent Units % Units % Units %
City of
Patterson 6,215 515 8.3% 640 10.3% 1,020 16.4% 4,040 65.0% Stanislaus
County 174,835 19,440 11.1% 21,580 12.3% 31,220 17.9% 102,595 58.7% SOURCE: HUD Comprehensive Housing Affordability Strategy (CHAS) Data, 2016-2020 NOTE: Data presented in this table is based on special tabulations from sample Census data. The number of households in each category usually deviates slightly from the 100% count due to the need to extrapolate sample data out to total households. Interpretations of this data should focus on the proportion of households in need of assistance rather than on precise numbers. Furthermore, because HUD programs do not cover households with incomes above 80 percent of the county Area Median Income (AMI), CHAS data does not provide any breakdown of income groups above 80 percent AMI.

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Section 1.0 Housing Needs Assessment 1-13 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025

1.4 Housing Inventory and Market Characteristics
Housing Growth
Table 1-16 reports the growth in the number of housing units from 2010 to 2020 for the City of Patterson, the City of Newman, the City of Gustine, the City of Turlock, and Stanislaus County. The City of Patterson saw its housing units increase from 6,328 in 2010 to 6,685 in 2020, reflecting a 1 percent increase from 2010 to 2015 and a more substantial 5 percent increase during the 5th Planning Cycle between 2015 to 2020. Compared to the other jurisdictions, Patterson experienced a relatively higher rate of growth, especially notable in the latter half of the decade, with the exception of Newman. While other cities and the County also saw increases in housing units, Patterson and Newman’s growth rates stand out as significant within the region.

Table 1-16 Housing Unit Growth by Jurisdiction (2010-2020) Jurisdiction Number of
Units 2010
Number of
Units 2015
Number of
Units 2020
Percent
Change 2010-
2015
Percent
Change 2015-
2020
City of Patterson 6,328 6,393 6,685 +1% +5%
City of Newman 3,357 3,477 3,739 +4% +8%
City of Gustine 2,087 2,099 2,146 +1% +2%
City of Turlock 24,627 24,824 25,076 +0.8% +1%
Stanislaus County 179,503 180,333 183,140 +0.5% +2%
SOURCE: California Department of Finance Population and Housing Estimates, 2010-2020 Unit Type and Size
Table 1-17 outlines changes in housing inventory by unit type in the City of Patterson from 2010 to 2022. The total number of housing units increased from 6,439 in 2010 to 6,994 in 2022. As shown, single-family detached homes have remained the most prominent unit type since 2010. During this period, the number of single family attached homes has fluctuated, rising from 181 units (3 percent) in 2010 to 327 units (5 percent) in 2015, and then stabilizing at 186 units (3 percent) by 2022. Multifamily housing units with two to four units remained relatively stable around 2 percent, while units with five or more units increased from 274 units (4 percent) in 2010 to 442 units (6 percent) in 2022, indicating a shift towards more multi-family housing. Mobile homes or trailers remained constant at approximately 2 percent of the total housing units. Overall, the data shows modest growth in the total housing units with a trend towards a higher percentage of multi-family units over time.

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Section 1.0 Housing Needs Assessment 1-14 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-17 Housing Inventory by Unit Type (2010-2022), City of Patterson Unit Type
2010 2015 2020 2022
Units Percent Units Percent Units Percent Units Percent Single-family detached 5,690 88% 5,379 90% 5,910 88% 6,081 87% Single-family, attached 181 3% 327 5% 186 3% 186 3%
Multi-family (2-4 units) 159 2% 96 2% 157 2% 157 2%
Multi-family (5+ units) 274 4% 62 1% 304 5% 442 6%
Mobile home or trailer 135 2% 145 2% 128 2% 128 2%
Total Housing Units 6,439 100% 6,009 100% 6,685 100% 6,994 100% SOURCE: U.S. Census, ACS 5-Year Estimates, Table DP04, 2010-2015; California Department of Finance Population and Housing Estimates, 2020-2022 Table 1-18 presents data on housing unit types by tenure (owner-occupied and renter-occupied) in 2022. In the City of Patterson, single-family detached homes dominate, with 5,716 units (90.1 percent) of total occupied housing units. Of these, 4,447 units (95.5 percent) are owner-occupied, while 1,269 units (75.2 percent) are renter-occupied. Single-family attached homes account for 148 units (2.3 percent), with a small proportion being owner-occupied (3 units, 0.1 percent) and the majority being renter-occupied (145 units, 8.6 percent). Multi-family developments (2-4 units) make up 1 percent of the total, all of which are renter-occupied. Multi-family developments with five or more units constitute 3.4 percent of the total, with 34 units (0.7 percent) owner-occupied and 180 units (10.7 percent) renter-occupied. Mobile homes or trailers represent 3.2 percent of the total housing units, with 173 units (3.7 percent) owner-occupied and 33 units (2 percent) renter-occupied.

In total, there are 6,345 occupied housing units in Patterson, with 4,657 (73.4 percent) being owneroccupied and 1,688 (26.6 percent) renter-occupied.

Table 1-18 Unit Type by Tenure (2022), City of Patterson Unit Type
Owner-Occupied Renter-Occupied Total Occupied
Housing Units
Units Percent Units Percent Units Percent
Single-family detached 4,447 95.5% 1,269 75.2% 5,716 90.1% Single-family, attached 3 0.1% 145 8.6% 148 2.3%
Multi-family (2-4 units) 0 0.0% 61 3.6% 61 1.0%
Multi-family (5+ units) 34 0.7% 180 10.7% 214 3.4%
Mobile home or trailer 173 3.7% 33 2.0% 206 3.2%
Total Housing Units 4,657 100% 1,688 100% 6,345 100%
SOURCE: U.S. Census, ACS 5-Year Estimates, Table S2504, 2022 Packet Pg. 1280
Section 1.0 Housing Needs Assessment 1-15 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-19 reports data on housing unit sizes by tenure (owner-occupied and renter-occupied) in 2022 in Patterson. As shown, the majority of units are four or more bedroom and two-to-threebedroom units. Specifically, two-to-three-bedroom units comprise 2,740 (43.2 percent) of total occupied housing units, with 1,993 (42.8 percent) owner-occupied and 747 (44.3 percent) renteroccupied. Units with 4 or more bedrooms account for 3,118 units (49.1 percent), with a significant majority being owner-occupied (2,651 units, 56.9 percent) and 467 units (27.7 percent) renteroccupied. Smaller unit types are less common, with 421 one-bedroom units (6.6 percent) where only three are owner-occupied (0.1 percent) and 418 are renter-occupied (24.8 percent). Studios are the least common, totaling 66 units (1.0 percent) with 10 (0.2 percent) owner-occupied and 56 (3.3 percent) renter-occupied.

Overall, the majority of housing units in Patterson are larger, with two or more bedrooms, and are primarily owner-occupied. This suggests a preference or availability for larger homes within the city, potentially indicating a community structure that favors family-sized households. The relatively low numbers of smaller units, such as studios and 1-bedroom units, which are predominantly renteroccupied, imply that there may be fewer housing options for singles or smaller households. This distribution could reflect the housing market's focus on family living or a demand for larger living spaces.

Table 1-19 Unit Size by Tenure (2022), City of Patterson Unit Size
Owner-Occupied Renter-Occupied Total Occupied Housing Units Units Percent Units Percent Units Percent
Studio 10 0.2% 56 3.3% 66 1.0%
1-bedroom 3 0.1% 418 24.8% 421 6.6%
2-3 bedrooms 1,993 42.8% 747 44.3% 2,740 43.2%
4+ bedrooms 2,651 56.9% 467 27.7% 3,118 49.1%
Total 4,657 100% 1,688 100% 6,345 100%
SOURCE: U.S. Census, ACS 5-Year Estimates, Table S2504, 2022 Vacancy Rates
A certain number of vacant units are needed to moderate housing costs, provide resident choice, and incentivize upkeep. Rental properties typically have higher vacancy rates due to greater attrition.

A healthy vacancy rate, allowing sufficient choice and mobility, is 2-3 percent for ownership units and 5-6 percent for rental units.

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Section 1.0 Housing Needs Assessment 1-16 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-20 reports occupancy status in Patterson in 2010 and 2020. Between 2010 and 2022, Patterson experienced a significant increase in occupied housing units, rising from 85.4 percent to

94.8 percent of the total housing inventory. The total number of housing units grew from 6,440 to 6,694, while the vacancy rate dropped from 14.6 percent to 5.2 percent. This decrease in vacancy rates is reflected across various categories, including units for rent, for sale, and other vacant types.

Overall, the data points to increased housing demand and improved occupancy stability in Patterson over the 12-year period.

Table 1-20 Occupancy Status (2010-2022), City of Patterson Occupancy Status
2010 2022
Total Percent Total Percent
Occupied housing units 5,497 85.4% 6,345 94.8%
Total Vacant housing units 943 14.6% 349 5.2%
For rent 167 17.7% 42 12.0%
Rented, not occupied 54 5.7% 0 0.0%
For sale only 292 31.0% 190 54.4%
Sold, not occupied 326 34.6% 60 17.2%
For seasonal, recreation, or occupation 31 3.3% 15 4.3% For migrant workers 0 0.0% 0 0.0%
Other vacant 73 7.7% 42 12.0%
Total Housing Units 6,440 -- 6,694 --
Homeowner vacancy -- 6.7% -- 3.9%
Rental vacancy -- 8.4% -- 2.4%
SOURCE: U.S. Census, ACS 5-Year Estimates, Tables B25002, B25004, 2010-2022 Housing Conditions
Age and Condition of Housing Stock
The age of a housing unit is often an indicator of housing conditions. In general, housing that is 30 years or older may exhibit a need for repairs based on the useful life of materials. Housing over 50 years old is considered aged and is more likely to exhibit a need for major repairs.

Table 1-21 reports the distribution of owner-occupied and renter-occupied housing units in Patterson in 2022 by the year built. The majority of owner-occupied homes (48.2 percent) were built between 2000 and 2009, while most renter-occupied homes (32.5 percent) date from 1980 to 1989.

According to U.S. Census ACS 5-year estimates, there were no housing units built between 2020 and 2022. A significant portion of owner-occupied homes were built between 1970 and 1989, accounting Packet Pg. 1282
Section 1.0 Housing Needs Assessment 1-17 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 for 34.1 percent combined, while 42.4 percent of renter-occupied units were built between 1980 and 2009. Housing units built before 1960 represent a small fraction of the total, indicating that Patterson's housing stock is relatively modern, with a focus on homes built in the last 30 to 50 years.

This data suggests a stable, relatively new housing stock with a higher proportion of newer homes being owner-occupied and older units more likely to be rented.

Table 1-21 Tenure by Age of Housing Stock (2022), City of Patterson Year Built
Owner-Occupied Renter-Occupied
Units Percent Units Percent
Built 2020 – 2022 0 0.0% 0 0.0%
Built 2010 to 2019 256 5.5% 127 7.5%
Built 2000 to 2009 2243 48.2% 449 26.6%
Built 1990 to 1999 579 12.4% 267 15.8%
Built 1980 to 1989 1011 21.7% 548 32.5%
Built 1970 to 1979 142 3.0% 102 6.0%
Built 1960 to 1969 37 0.8% 26 1.5%
Built 1950 to 1959 99 2.1% 58 3.4%
Built 1940 to 1949 52 1.1% 12 0.7%
Built 1939 or earlier 238 5.1% 99 5.9%
Total 4,657 100% 1,688 100%
SOURCE: U.S. Census, ACS 5-Year Estimates, Tables B25002, B25004, B25036, 2010-2022 Housing is considered substandard when conditions are found to be below the minimum standard of living conditions defined in Section 1001 of the Uniform Housing Code. Households living in substandard conditions are considered to be in need of housing assistance, even if they are not seeking alternative housing arrangements, due to the threat to health and safety. In addition to structural deficiencies and standards, the lack of infrastructure and utilities often serves as an indicator for substandard conditions.

Table 1-22 reports the number of housing units in Patterson that lack plumbing facilities and/or lack complete kitchen facilities according to tenure (owner-occupied or renter-occupied). As shown, no units were reported lacking plumbing facilities. In contrast, 72 renter-occupied units were reported lacking complete kitchen facilities compared to zero owner-occupied units. However, the Census typically undercounts substandard housing conditions as it is not able to report on other more subtle housing problems, such as inadequate wiring, leaks, or inadequate or lack of heating.

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Section 1.0 Housing Needs Assessment 1-18 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-22 Units Lacking Plumbing or Complete Kitchens (2022), City of Patterson Units Owner-Occupied Renter-Occupied Total
Lacking plumbing facilities 0 0 0
Lacking complete kitchen facilities 0 72 72
Total households 6,345
SOURCE: U.S. Census, ACS 5-Year Estimates, Tables B25049, B25053, 2022 The City’s Building Department estimates that about 5 percent (approximately 350 units) of the housing stock in the city require substantial rehabilitation or replacement. The eastern and downtown areas of the city, characterized by older infrastructure and higher concentrations of lower-income households, are most in need of residential rehabilitation. These areas feature a mix of single-family homes and multi-family apartments.

Code Enforcement Activities
The City has adopted Municipal Codes specifically designed to address blight, nuisances, and maintain a clean environment for all residents. The enforcement of these codes is the responsibility of the building inspector, Chief Building Official, and the City Manager. The City’s code enforcement approach emphasizes education first, providing adequate notice before issuing fines or scheduling hearings if necessary. The City strives to partner with residents and business owners to ensure a fair and unbiased enforcement program that raises public awareness of the City's Municipal Codes—such as those related to property maintenance, public nuisances, abandoned vehicles, and zoning—and to facilitate the correction of code violations as they arise. Common code violations in the city include the following:
▪ Building Code violations such as construction without permits (e.g., room additions, garage conversions, patio covers, re-roofs, electrical, plumbing, and mechanical improvements like water heater and HVAC installations);
▪ Accumulation of junk and debris visible from public areas in residential and commercial zones; ▪ Unpermitted businesses operating in residential neighborhoods; ▪ Inoperable or abandoned vehicles on private property; ▪ Zoning violations related to structure use, size, and location; ▪ Hazardous or overgrown vegetation posing fire risks;
▪ Vacant and unsecured properties;
▪ Parking violations on unapproved surfaces, such as landscaped areas; and ▪ Commercial tenant improvements without permits, including installing interior walls, electrical, plumbing, and mechanical improvements.

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Section 1.0 Housing Needs Assessment 1-19 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Housing Costs and Affordability
Home Prices
Table 1-23 reports the median home prices in Stanislaus County, Patterson, Newman, Ceres, Modesto, and Turlock from 2019 to 2024. Stanislaus County as a whole saw a 40 percent increase in median home values over this period, rising from $336,318 in 2019 to an estimated $473,951 in 2024. In Patterson, the median home price increased by 39 percent, from $378,520 in 2019 to $528,330 in 2024. Other cities like Newman, Ceres, Modesto, and Turlock experienced similar trends, with percentage increases ranging from 37 percent to 44 percent. This data indicates a steady and significant rise in home prices across the county, reflecting a broader trend of increasing real estate values in the region.

Table 1-23 Median Home Prices (2015-2024)
Jurisdiction
Median Home Value Percent
Change 2019-
2024
2019 2020 2021 2022 2023 20241
Stanislaus
County
$336,318 $371,170 $436,441 $455,777 $462,235 $473,951 40% Patterson $378,520 $407,727 $495,688 $511,562 $516,463 $528,330 39% Newman $310,817 $342,560 $408,221 $423,489 $430,258 $442,710 42% Ceres $318,070 $350,785 $415,472 $438,326 $446,188 $458,151 44% Modesto $318,638 $353,602 $415,862 $435,525 $443,416 $454,884 42% Turlock $357,430 $394,676 $454,231 $474,259 $480,037 $491,701 37% SOURCE: Zillow Home Value Index, 2019-2022
NOTE: Housing value estimates were taken from December for years 2019-2024 for single-family homes unless otherwise indicated. 1 Estimates taken for July 2024.

Average Rents
Similar to home value prices, rental prices have also increased over the last decade. This significantly affects lower-income households as they are typically majority renters. High rental prices can exacerbate housing challenges such as overcrowding and cost burden if adequate rental stock is not available to suit household needs.

Table 1-24 utilizes Zillow rental data to compare average rents in Patterson in 2023 with Fair Market Rents (FMR) as established by HUD for the Modesto, CA Metropolitan Statistical Area (MSA). For one-bedroom units, the average rent in Patterson is $1,200, which is slightly above the FMR of $1,072. Two-bedroom units in Patterson have an average rent of $1,800, which is higher than the FMR of $1,365. For three-bedroom units, the average rent is $2,600, significantly above the FMR of $1,929. Finally, four-bedroom units have an average rent of $2,848, exceeding the FMR of $2,258.

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Section 1.0 Housing Needs Assessment 1-20 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-24 Average Rent by Unit Size (2023), City of Patterson Unit Type Average Rents Fair Market Rents (HUD)
Studio - $1,039
One bedroom $1,200.00 $1,072
Two bedrooms $1,800.00 $1,365
Three bedrooms $2,600.00 $1,929
Four+ bedrooms $2,848.00 $2,258
SOURCE: Zillow, 2023; HUD, Fair Market Rent Documentation System, 2023; NOTE: Zillow rental value estimates were taken from June 2023 median rental price.

Fair Market Rent values are based on Modesto, CA MSA.

The data indicates that average rents in Patterson for 2023 are higher than the FMR established by HUD across all unit sizes. This suggests that rental costs in Patterson may be relatively high compared to what HUD considers affordable for the area, potentially making it more difficult for lower-income households to afford housing in Patterson without exceeding their budget. This discrepancy may also indicate a competitive rental market with demand outpacing supply, driving up rental prices beyond HUD's determined fair market levels.

Affordability Gap Analysis
The costs of homeownership and renting can be compared to a household's ability to pay to determine housing affordability in a community. Housing is considered affordable if it requires no more than 30 to 35 percent of the gross household income (depending on tenure and income level) for housing expenses.

Table 1-25, provides an overview of HUD defined state income limits for Stanislaus County and the maximum affordable prices for both rental and ownership housing across various income groups. It breaks down the income limits into four categories based on percentage of Area Median Income (AMI): extremely low (0-30 percent AMI), very low (30-50 percent AMI), low (50-80 percent AMI), and moderate (100-120 percent AMI). As of 2024, the median income for Stanislaus County was $92,600. For purposes of this Housing Element’s calculation, the following assumptions were used to determine maximum affordability:
▪ 30 percent of gross income for rent or principal, interest, taxes, insurance, and plus utilities; ▪ Zero down payment;
▪ 6.49 percent interest rate with a 30-year fixed rate mortgage loan; ▪ 1.2 percent taxes; and
▪ $800 in annual insurance.

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Section 1.0 Housing Needs Assessment 1-21 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-25 Housing Affordability Matrix (2024), Stanislaus County Income Group HCD Income Limits
Maximum Affordable Price
Monthly Rental Ownership
Extremely Low (0-30% AMI)
One Person $19,150 $479 $50,561
Two Person $21,900 $548 $59,076
Three Person $25,820 $646 $71,129
Four Person $31,200 $780 $87,733
Very Low (30-50% AMI)
One Person $31,900 $798 $89,823
Two Person $36,450 $911 $103,906
Three Person $41,000 $1,025 $117,865
Four Person $45,550 $1,139 $131,824
Low (50-80% AMI)
One Person $51,050 $1,276 $148,797
Two Person $58,350 $1,459 $171,181
Three Person $65,650 $1,641 $193,688
Four Person $72,900 $1,823 $215,888
Moderate (100-120% AMI)
One Person $77,750 $1,944 $230,831
Two Person $88,900 $2,223 $265,083
Three Person $100,000 $2,500 $299,275
Four Person $111,100 $2,778 $333,343
SOURCE: California Department of Housing and Community Development, State Income Limits, 2024, Stanislaus County https://www.zillow.com/mortgage-calculator/house-affordability/ NOTES: State Income Limits use 2024 Area Median Income (AMI). Stanislaus County four-person household median income= $92,600.

As shown, a one-person household in the extremely low-income group (earning $19,150) can afford a maximum monthly rent of $479 or purchase a home valued up to $50,561. In contrast, a fourperson household in the moderate-income group (earning $111,100) can afford a monthly rent of $2,778 or buy a home valued up to $333,343.

Given the high costs of homeownership, moderate- and lower-income households often struggle to purchase homes and are typically limited to rental housing options. The affordability challenges in Patterson are reflected in both the homeownership and rental markets. For lower-income households, affording rental units that are appropriately sized for their family without experiencing a cost burden—defined as spending more than 30 percent of their income on housing—is difficult.

This is especially true for larger units, such as three- and four-bedroom rentals, which tend to be too expensive for moderate-income households to afford without overpayment.

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Section 1.0 Housing Needs Assessment 1-22 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 In Patterson, moderate-income households may be able to rent some smaller units, like one- and two-bedroom apartments, without facing a significant cost burden. However, once the need for larger units arises, even moderate-income households may face rental prices that exceed affordable thresholds, leading to housing cost burdens.

These trends are consistent with broader regional challenges in California, where housing prices and rents often outpace income growth, particularly for lower- and moderate-income households.

1.5 Overview of Housing Needs
The following section details housing problems and severe housing problems in Patterson according to the Census Bureau Comprehensive Housing Affordability Strategy (CHAS). Disproportionate housing needs generally refers to a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing need when compared to the proportion of members of any other relevant groups, or the total population experiencing that category of housing need in the applicable geographic area. For purposes of this definition, categories of housing need are based on such factors as cost burden and severe cost burden, overcrowding, homelessness, and substandard housing conditions.3 Cost Burden
Housing cost burden is generally defined as households paying more than 30 percent of their gross income on housing related expenses, including rent or mortgage payments and utilities. For renters, housing costs include rent paid by the tenant plus utilities. For owners, housing costs include mortgage payment, taxes, insurance, and utilities. High housing costs can cause households to spend a disproportionate percentage of their income on housing. This may result in payment problems, deferred maintenance or overcrowding. This section uses data from the 2015-2019 Comprehensive Housing Affordability Strategy (CHAS) published by HUD. The CHAS provides information related to households with housing problems, including cost burden, overcrowding and/or without complete kitchen facilities and plumbing systems. The most recent estimates were posted by HUD in September 2023 and were derived from the 2016-2020 American Community Survey (ACS).

Table 1-26 reports housing cost burden for households in Patterson in 2020, differentiating between lower-income households (earning less than 80 percent of the area median income) and all households. Overall, approximately 55 percent of all households experience cost burden. Among lower-income households, 1,680 households experience cost burden (paying 30 percent to 50 percent of income on housing), with 895 owner-occupied and 785 renter-occupied. Additionally, 940 lower-income households face severe cost burden (paying more than 50 percent of income on housing), with 535 owner-occupied and 405 renter-occupied. For all Patterson households, 2,350 3 California Department of Housing and Community Development Guidance, 2021, page 39.

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Section 1.0 Housing Needs Assessment 1-23 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 experience cost burden, including 1,415 owner-occupied and 935 renter-occupied, while 1,080 households have severe cost burden, with 675 owner-occupied and 405 renter-occupied. This data indicates that a significant number of households, particularly lower-income, face substantial financial strain due to housing costs, with a higher prevalence of cost burden among owneroccupied households.

Table 1-26 Housing Cost Burden by Tenure (2020), City of Patterson Household Cost Burden
(30% to <50%)
Severe Cost Burden
(>50%) Total
Lower-Income Households (<80% AMI)
Owner-Occupied 895 535 1,430
Renter-Occupied 785 405 1,190
Total 1,680 940 2,620
All Patterson Households
Owner-Occupied 1,415 675 2,090
Renter-Occupied 935 405 1,340
Total 2,350 1,080 3,430
SOURCE: HUD Comprehensive Housing Affordability Strategy Data, 2016-2020 Overcrowding
The U.S. Census defines an overcrowded unit as one occupied by 1.01 persons or more per room (excluding bathrooms and kitchens). Units with more than 1.5 persons per room are considered severely overcrowded. Overcrowding increases health and safety concerns and stresses the condition of the housing stock and infrastructure. Overcrowding is strongly related to household size (particularly for large and very-large households) and the availability of suitably sized housing.

Overcrowding impacts both owners and renters; however, renters are generally more significantly impacted. While family size and tenure are critical determinants in overcrowding, household income also plays a strong role in the incidence of overcrowding. As a general rule, overcrowding levels tend to decrease as income rises, especially for renters (particularly for small and large families).

Table 1-27 reports household overcrowding by tenure in Patterson and Stanislaus County from 2010 to 2022. Overall, approximately 11.5 percent of all households in Patterson experienced overcrowding in 2022, compared to 7.6 percent in the county. Overcrowding (1.01-1.5 occupants per room) in Patterson rose slightly from 4.2 percent in 2010 to 9.3 percent in 2022, primarily due to an increase in owner-occupied overcrowding. Severely overcrowded households (1.5+ occupants per room) decreased in Patterson from 3.0 percent in 2010 to 2.2 percent in 2022, with no severely overcrowded renter-occupied households reported in 2022. In Stanislaus County, overcrowding Packet Pg. 1289
Section 1.0 Housing Needs Assessment 1-24 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 slightly increased from 5.0 percent in 2010 to 5.6 percent in 2022, while severe overcrowding remained relatively stable at around 1.5 percent to 2.0 percent. This data indicates a growing issue with overcrowding in Patterson, particularly among owner-occupied homes, while severe overcrowding has slightly decreased.

Table 1-27 Overcrowding by Tenure (2010-2022), City of Patterson and Stanislaus County Jurisdiction
Overcrowded
(1.01-1.5 occupants per room)
Severely Overcrowded
(1.5+ occupants per room)
Renter Owner Total Households Renter Owner Total Households 2010
City of Patterson 8.2% 2.3% 4.2% 7.8% 0.7% 3.0%
Stanislaus County 8.4% 3.0% 5.0% 2.7% 0.8% 1.5%
2015
City of Patterson 7.6% 4.1% 5.4% 2.2% 1.9% 2.0%
Stanislaus County 8.2% 3.0% 5.2% 2.5% 0.9% 1.6%
2022
City of Patterson 8.2% 9.6% 9.3% 0.0% 3.0% 2.2%
Stanislaus County 7.9% 4.1% 5.6% 3.3% 1.1% 2.0%
SOURCE: U.S. Census, ACS 5-Year Estimates, Tables S2501, 2010-2022 Housing Growth Need (2023-2031)
The State of California determines the future housing needs for the counties that make up the Stanislaus Council of Governments (StanCOG) region. StanCOG is responsible for allocating the housing needs to each jurisdiction in its region. A local jurisdiction’s share of regional housing needs is the number of additional housing units needed to accommodate the forecasted household growth, to replace expected demolitions and conversion of housing units to non-housing uses, and to achieve an optimum vacancy rate that allows for healthy functioning of the housing market. The allocation is divided into the four income categories: Very Low, Low, Moderate, and Above Moderate. The allocation is further adjusted to avoid an over-concentration of lower-income households in any one jurisdiction.

Table 1-28 reports the Regional Housing Needs Allocation (RHNA) for the City of Patterson as determined by StanCOG.

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Section 1.0 Housing Needs Assessment 1-25 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-28 Regional Housing Needs Allocation (2023-2031), City of Patterson Total
Construction
Need
Extremely
Low-Income
Very
LowIncome
LowIncomeModerateIncome
Above
ModerateIncome
Number of Housing Units 3,716 523 523 724 593 1,353
SOURCE: Final Regional Housing Needs Allocation (RHNA) Plan: Stanislaus County Region, 2022 NOTE: The City’s RHNA allocation for very low-income is X units; this allocation is evenly split between extremely low and very low-income groups.

1.6 Special Needs Groups
Government Code Section 65583(a)(7)) requires “An analysis of any special housing needs, such as those of the elderly, persons with disabilities, including a developmental disability, as defined in Section 4512 of the Welfare and Institutions Code; large families, farmworkers, families with female heads of households, and families and persons in need of emergency shelter…” Special needs groups are those that may face particular challenges in obtaining adequate housing due to inherent circumstances such as age, disabilities, household size, income level, and occupation.

Large families, single parent households, female-headed households, or extremely low- and lowincome households, and homeless persons are classified as special needs groups.

Extremely Low-Income
Extremely low-income (ELI) households are those that earn less than 30 percent of the median family income (MFI). Very low-income households are those that earn 50 percent of less of the MFI. Extremely low-income households typically face a combination of housing challenges related to income status, family size/type, disability status, access to housing opportunities, and other household characteristics. Additionally, extremely low-income households are more likely to experience overcrowding, cost burden, and substandard housing conditions. Extremely low-income households are typically minimum-wage workers, disabled persons, farmworkers, and seniors on fixed incomes.

Table 1-29 reports data on extremely low-income households in Patterson. Out of 6,215 total occupied units, 515 households (8.3 percent) fall into the extremely low-income category, earning zero to 30 percent of the HUD Area Median Family Income (HAMFI). The majority of extremely low-income households (375, or 6 percent) are renters, while 140 (2.3 percent) are owners. A significant portion of these households are severely cost-burdened, with 355 extremely low-income households (5.7 percent) paying more than 50 percent of their income on housing. Additionally, 440 extremely low-income households (7.1 percent) experience at least one of four major housing problems (incomplete kitchen/plumbing, overcrowding, or high housing costs). Overall, this data highlights the financial challenges faced by extremely low-income residents in Patterson, particularly renters, who are disproportionately affected by severe cost burdens and housing problems.

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Section 1.0 Housing Needs Assessment 1-26 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-29 Extremely Low-Income Households (2016-2020), City of Patterson Households Number Percentage of Total
Households
Total occupied units (households) 6,215 100%
Total Lower-income (0-80% of HAMFI) households 2,175 35.0% Extremely Low-income (0-30% of HAMFI) households 515 8.3% Extremely Low-income renters 375 6.0%
Extremely Low-income owners 140 2.3%
Lower-income households paying more than 50% 945 15.2%
Extremely Low-income paying more than 50% 355 5.7%
ELI Renter HH severely cost burdened 225 3.6%
ELI Owner HH severely cost burdened 130 2.1%
Lower-income households paying more than 30% 1,690 27.2% Extremely Low-income paying more than 30% 410 6.6%
ELI Renter HH moderately cost burdened 270 4.3%
ELI Owner HH moderately cost burdened 140 2.3%
Lower-income households experiencing 1 of 4 Housing Problems 1,845 29.7% Extremely Low-income experiencing 1 of 4 Housing Problems 440 7.1% ELI Renter HH experiencing 1 of 4 Housing Problems 300 4.8% ELI Owner HH experiencing 1 of 4 Housing Problems 140 2.3% SOURCE: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2016-2020.

NOTE: MFI = HUD Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. MFI will not necessary be the same as other calculations of median incomes (such as Census number), due to a series of adjustments that are made.

The four housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1 person per room, and cost burden greater than 30%. ***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.

Data for overcrowding by income level is not available for Patterson. However, because both renter and owner-occupied households in Patterson experience overcrowding (9.3 percent of all households, Table 1-27) it is a likely assumption that extremely low-income households experience overcrowding.

The projected RHNA for extremely low-income households was based on the assumption that 50 percent of very low-income households qualify as extremely low-income households.4 The very lowincome housing need for Patterson is 1,046 housing units, of which the City estimates 523 housing units will accommodate the extremely low-income housing need. 4 https://www.hcd.ca.gov/planning-and-community-development/housing-elements/building-blocks/extremely-lowincome-housing-needs Packet Pg. 1292
Section 1.0 Housing Needs Assessment 1-27 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Resources Available
Extremely low-income households can benefit from non-traditional housing types that offer supportive services and/or low costs, such as transitional and supportive housing, low-barrier housing, single-room occupancies (SROs), accessory dwelling units (ADUs), and, in urgent situations, emergency shelters.

As discussed in Section 1.7, Publicly Assisted Housing, Patterson has five state and federally subsidized multi-family housing developments that collectively provide 254 deed-restricted affordable units. The California Housing Partnership did not identify any of these developments atrisk of converting to market rate in the next 10 years. These developments are primarily located in the eastern quadrants of the city, near public services and transit stops.

To ensure that appropriate housing types are permitted in Patterson to meet the needs of extremely low-income households, the City has included several programs that propose amendments to the Zoning Code (Programs 1.4 – 1.6 and 4.4 – 4.12 see Chapter 3). Once implemented, these amendments will remove governmental constraints to the development of transitional and supportive housing, low-barrier navigation centers, single room occupancies, ADUs and emergency shelters.

In addition to the City’s efforts to facilitate the development of affordable housing in Patterson, the following local and regional service providers and programs are available to assist extremely lowincome households:
▪ HOST House;
▪ Patterson Family Resource Center;
▪ Housing Choice Voucher Program;
▪ Stanislaus Regional Housing Authority;
▪ Stanislaus Homeless Alliance (SHA);
▪ Stanislaus County Affordable Housing Corporation;
▪ First-Time Homebuyer Assistance; and
▪ Stanislaus County Regional Transit (StaRT) Dial-A-Ride.

Seniors
Seniors (persons aged 65 and above) are gradually becoming a more substantial segment of a community’s population. Americans are living longer and having fuller lives than ever before in our history and are expected to continue to do so. Elderly-headed households are vulnerable to housing problems due to limited income, prevalence of physical or mental disabilities, limited mobility, and high health care costs. The elderly, particularly those with disabilities, may face increased difficulty in finding housing accommodations.

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Section 1.0 Housing Needs Assessment 1-28 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-30 reports the number and percentage of householders aged 65 years and older in Patterson and Stanislaus County from 2010 to 2022. In Patterson, the number of senior householders increased from 783 (14.2 percent) in 2010 to 868 (13.7 percent) in 2022, indicating a slight growth in the senior population. In Stanislaus County, the senior householders grew more significantly from 31,382 (19.2 percent) in 2010 to 42,463 (24.2 percent) in 2022. This data highlights a growing trend of aging populations in both Patterson and the county, with a more pronounced increase in the county overall.

Table 1-30 Householders 65 Years and Older (2010-2022), City of Patterson and Stanislaus County
Jurisdiction
2010 2015 2022
Number Percent Number Percent Number Percent
City of Patterson 783 14.2% 724 12.7% 868 13.7%
Stanislaus County 31,382 19.2% 35,927 21.2% 42,463 24.2% SOURCE: U.S. Census ACS 5-Year Estimate, Table B25007, 2010-2022 NOTE: Percent indicates the percentage of householders aged 65 years and older out of total households.

Table 1-31 reports data on householders by tenure (owner-occupied and renter-occupied) and age in Patterson from 2010 to 2022. During this time frame, householders aged 65 and older showed significant growth. In 2010, those aged 65-74 made up 7.5 percent of owner-occupied and 0.7 percent of renter-occupied households, increasing to 6.4 percent and 1.5 percent respectively in 2022. Householders aged 75 and older in owner-occupied units grew from 4.9 percent in 2010 to 6 percent in 2022, while renter-occupied units increased from 1.2 percent to 1.5 percent. Overall, the data indicates a trend towards an aging homeowner population, while the renter demographic remains more balanced across younger age groups.

Table 1-31 Householders by Tenure and Age (2010-2022), City of Patterson Householder
Age
2010 2022
OwnerOccupied Percent RenterOccupied Percent OwnerOccupied Percent RenterOccupied Percent 15 to 24 years 106 1.9% 168 3.1% 101 1.6% 76 1.2%
25-34 years 408 7.4% 388 7.1% 464 7.3% 223 3.5%
35-64 years 2,542 46.3% 1,101 20.0% 3,418 53.9% 1,195 18.8% 65-74 years 411 7.5% 38 0.7% 291 4.6% 96 1.5%
75+ years 269 4.9% 65 1.2% 383 6.0% 98 1.5%
Total 3,736 100% 1,760 100% 4,657 100% 1,688 100%
SOURCE: U.S. Census ACS 5-Year Estimate, Table B25007, 2010-2022 Packet Pg. 1294
Section 1.0 Housing Needs Assessment 1-29 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 According to 2022 ACS 5-year estimates report that the median household income for households with a householder aged 65 years or older was $44,516.5 This figure is lower than the citywide median household income of $100,084. Furthermore, 2022 ACS 5-year estimates report that approximately 20 percent of the senior population in Patterson were living below the poverty line.6 Resources Available
In Patterson, there are currently three senior living communities, Marigold Home, located at 1416 Marigold Drive, Las Palmas Senior Housing Complex, located at 1075 Las Palmas Avenue, and El Solyo Village, located at 850 2nd Street. The Marigold Home is a licensed assisted living facility for seniors that provides a maximum of six units.

Operated by the Stanislaus Regional Housing Authority, the Las Palmas Senior Housing Complex features 24 newly constructed one-bedroom apartments for seniors and disabled individuals.

Conveniently located near shopping, the I-5 highway, and the future Patterson Senior Center, the apartments offer spacious designs ranging from 606 to 624 square feet, with fully equipped kitchens and central heating and air. All units are handicapped adaptable. The complex includes an onsite community center with a lounge, activity area, library, laundry room, and kitchen for senior activities and gatherings. The beautifully landscaped grounds feature a gazebo and community garden, encouraging socialization and community projects.

Eligibility requirements include being 62 years or older, near-elderly (50 to 61 years old), having an income at or below 80 percent of the area median income as defined by HUD, having one to two family members for a one-bedroom apartment, and meeting screening and selection criteria. Rents start at $669 per month, depending on income level, and Section 8 is accepted.

Phase two of the Las Palmas Senior Housing Complex is underway and will provide 16 deedrestricted, very low-income senior housing units. The Housing Authority is currently in the design phase, and these units are included in the site inventory. Additionally, there is one licensed elderly residential care facility, Patterson Care Home LLC, located at 142 Palomino Way. This facility provides care for a maximum of six people.

El Solyo Village is a senior housing community operated by The Michaels Organization, a prominent developer and manager of affordable housing across the U.S. The development offers affordable apartments for elderly or disabled residents.

As a result of these senior housing developments, many of the city's senior residents live in the central areas of the city. The City operates the Hammon Senior Center, which is centrally located to ensure equitable access for all senior residents. The City offers several classes and resources for seniors aged 50 and older, including arts and crafts, games, social events, excursions, and special 5 U.S. Census ACS 5-Year Estimate, Table B19049, 2022
6 U.S. Census ACS 5-Year Estimate, Table S1701, 2022
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Section 1.0 Housing Needs Assessment 1-30 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 events. The Hammon Senior Center is open Monday-Friday from 8:00 am to 3:00 pm, and is where the majority of senior events, resources, and learning sessions are held. The following food distribution programs are available to seniors (50 years and older):
▪ Commodities Program: First Tuesday of the month from 9:30 am to 11:00 am; ▪ Green Bag Program: Third Wednesday of the month from 12:45 pm to 1:45 pm, providing approximately 10 pounds of fruit/vegetables and a fitness/wellness presentation; ▪ Westside Food Pantry: Every Thursday from 1:00 pm to 3:30 pm; and ▪ Lunch Congregate Meal Site: Monday through Friday from 11:30 am to 12:00 pm. This program is free for seniors aged 60 and older, and costs six dollars for adults aged 50-59.

The Hammon Senior Center also coordinates game nights, featuring activities such as bingo, billiards, Loteria, Wii Bowling, table tennis, Mahjong, and poker. Educational sessions, including basic computing, senior tech support, basic Spanish, and conversational English, are provided free of charge or at low cost. Additionally, the City offers a Low-Income Program for seniors aged 60 and older, providing discounted rates for water and garbage utility services.

To further assist senior residents obtain affordable and adequate housing, the City has included the following programs (see Chapter 3):
▪ Program 4.1: Reasonable Accommodation and Housing for Persons with Disabilities; ▪ Program 4.2: Universal Design to Encourage Housing for Seniors and Persons with Limited Mobility;
▪ Program 4.3: Residential Care Facilities; and
▪ Program 4.4: Facilitating the Development of Affordable Senior Housing – Phase 2 Las Palmas Senior Apartments.

In addition to the services provided by the city, the following regional services providers and programs are available to assist seniors:
▪ Stanislaus County Regional Transit (StaRT) Dial-A-Ride; ▪ Stanislaus County Department of Aging and Veterans Services; • Project Hope: provides professional Brief Counseling, volunteer Peer Counseling/support, and Friendly Visitors; and
• Prevention & Early Intervention (PEI) services for older adults. ▪ Modesto Senior Citizens Services;
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Section 1.0 Housing Needs Assessment 1-31 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 ▪ Sitters of Stanislaus (SOS Elder Care);
▪ Habitat for Humanity Modesto; and
▪ Meals on Wheels (Stanislaus County).

Persons with Disabilities
Federal laws define a person with a disability as "any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such impairment; or is regarded as having such an impairment.” In general, a physical or mental impairment includes hearing, mobility and visual impairments, chronic alcoholism, chronic mental illness, AIDS, AIDS Related Complex, and intellectual disabilities that substantially limits one or more major life activities. Major life activities include walking, talking, hearing, seeing, breathing, learning, performing manual tasks, and caring for oneself.

The U.S. Census Bureau classifies disabilities into the following categories:
▪ Hearing difficulty: Deaf or having serious difficulty hearing; ▪ Vision difficulty: Blind or having serious difficulty seeing, even when wearing glasses; ▪ Cognitive difficulty: Because of a physical, mental, or emotional problem, having difficulty remembering, concentrating, or making decisions;
▪ Ambulatory difficulty: Having serious difficulty walking or climbing stairs; ▪ Self-care difficulty: Having difficulty bathing or dressing; and ▪ Independent living difficulty: Because of a physical, mental, or emotional problem, having difficulty doing errands alone such as visiting a doctor’s office or shopping.

Table 1-32 reports disability characteristics in Patterson. According to 2022 ACS 5-year estimates, approximately 8.2 percent (1,936) of Patterson’s population over 5 years of age had one or more disabilities. Within the population with a disability(s), approximately 45 percent were adults aged 18 to 64 years of age, and 51 percent were seniors (65+). Ambulatory (23 percent) and independent living (22 percent) difficulties were the most common. However, prevalence of certain disabilities varied among age groups. For example, cognitive and independent living difficulties were most prevalent among adults aged 18 to 64 years. Whereas, vision and ambulatory difficulties were most prevalent among seniors (65+).

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Section 1.0 Housing Needs Assessment 1-32 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-32 Disability Characteristics, City of Patterson Disability by Age and Type 5 to 17 Years 18 to 64 Years 65 Years and Older Total Total Persons with a Disability 3.4% 44.9% 51.6% 100%
Disability Type
Hearing Difficulty 0% 42% 58% 16.0%
Vision Difficulty 0% 31% 69% 7.3%
Cognitive Difficulty 16%* 51% 33% 19.3%
Ambulatory Difficulty 0% 41% 59% 23.1%
Self-Care Difficulty 3%* 44% 53% 11.6%
Independent Living Difficulty1 N/A** 51% 49% 22.4%
Total Persons with Disability 134 1,762 2,024 3,920
SOURCE: U.S. Census ACS 5-Year Estimate, Table S1810, 2022 NOTE: *Tallied for all persons under 18 years.
**Tallied only for persons 18 years and over.

Persons with Developmental Disabilities
Chapter 507, Statutes of 2010 (SB 812), which took effect January 2011, amended state housingelement law to require the analysis of people with disabilities to include an evaluation of the special housing needs of persons 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.

The Census does not record developmental disabilities. According to the U.S. Administration on Developmental Disabilities, an accepted estimate of the percentage of the population that can be defined as developmentally disabled is 2 percent. This equates to approximately 485 persons in Patterson, based on the 2022 DOF population estimates.
7 The latest data from the California Department of Developmental Services (December 2021) indicates that 308 individuals in Patterson have a developmental disability. Of these, 195 are aged zero to 17, and 113 are 18 or older. Data on Patterson residents with developmental disabilities by residency type indicates that the majority (289) reside with a parent, family member, or guardian.

Fewer than 11 individuals live in independent or supported living arrangements, community care facilities, or foster/family homes, while none reside in intermediate care facilities (California Department of Developmental Services 2021).
7 https://dof.ca.gov/forecasting/demographics/estimates/e-4-population-estimates-for-cities-counties-and-the-state2021-2024-with-2020-census-benchmark/ Packet Pg. 1298
Section 1.0 Housing Needs Assessment 1-33 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Resources Available
Special housing needs for persons with disabilities fall into two general categories: physical design to address mobility impairments and in-home social, educational, and medical support to address developmental and mental impairments. The California Department of Social Services, Community Care Licensing Division reports that in Patterson, there are four State-licensed residential care facilities for adults and one for the elderly. The service organization listed in the “Seniors” section above includes several resources that accommodate seniors with disabilities.

The City’s Municipal Code establishes procedures for persons with disabilities seeking equal access to housing, including reasonable accommodation for persons with disabilities. Additionally, the City follows the requirements of California Building Code Title 24, which establishes provisions for accessible building design. To further ensure adequate housing is available for persons with disabilities, the City has included Program 4.2, which proposes the adoption of a Universal Design Ordinance to include design elements that assist persons with disabilities or limited mobility (see Chapter 3). These design elements would address, limited lifting (e.g. roll-in showers and grab bars), limited mobility (e.g. push/pull lever faucets, wide swing hinges) and limited vision (e.g. additional stairwell and task lighting) pursuant to Health and Safety Code section 17959.

In addition to the efforts described above, the City has identified the following regional service providers and programs to assist residents that are living with disabilities:
▪ Stanislaus County Family Caregiver Support Program;
▪ Stanislaus County BRIDGES Volunteer Driver Program;
▪ Stanislaus County Health Services Agency;
▪ Stanislaus County Department of Mental Health;
▪ Disability Resource Agency for Independent Living (DRAIL) (Modesto); ▪ Stanislaus County Regional Transit (StaRT) Dial-A-Ride; and ▪ Right At Home (Modesto).

Large Households
Large households are defined as those with five or more members. These households are usually families with two or more children or families with extended family members such as in-laws or grandparents. It can also include multiple families living in one housing unit in order to save on housing costs. Large households are a special needs group because the availability of adequately sized, affordable housing units is often limited. To save for necessities such as food, clothing, and medical care, lower- and moderate-income large households may reside in smaller units, resulting in overcrowding.

Table 1-33 reports detailed information on large households (five or more persons) in Patterson in 2022, differentiated by tenure (owner-occupied and renter-occupied units). Out of the total 6,345 Packet Pg. 1299
Section 1.0 Housing Needs Assessment 1-34 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 households in the city, 1,644 are considered large households, representing 26 percent of the total households. Among these, owner-occupied large households (1,311 households) significantly outnumber renter-occupied large households (333 households). Six person households are the most common among owner-occupied households, whereas, five person households are the most common among renter-occupied households. Overall, large households represent 26 percent of all households, with a higher percentage (28 percent) among owner-occupied units compared to renteroccupied units (20 percent). This data highlights a trend where larger households are more likely to own their homes rather than rent.

Table 1-33 Large Households by Tenure (2022), City of Patterson Number of Persons
in Unit Owner-Occupied Renter-Occupied Total
Five Persons 433 227 660
Six Persons 645 63 708
Seven or More Persons 233 43 276
Total Large Households 1,311 333 1,644
Total Households 4,657 1,688 6,345
Percent of Total Households 28% 20% 26%
SOURCE: U.S. Census ACS 5-Year Estimate, Table B25009, 2022 Table 1-34 reports the existing housing stock in Patterson by number of bedrooms. As shown, the housing stock in Patterson is primarily comprised of homes with four to seven bedrooms, with 67 percent of all units within this category, predominantly in owner-occupied homes. This aligns with the household size data, which indicates that large households are more likely to own their homes and live in larger units. Conversely, smaller rental units with fewer bedrooms primarily accommodate smaller households.

Table 1-34 Housing Stock by Number of Bedrooms (2022), City of Patterson Number of Bedrooms in Unit Owner-Occupied RenterOccupied Total Percent One bedroom 10 56 66 1%
Two – Three bedrooms 24 418 442 7%
Four – Five bedrooms 1,394 609 2,003 32%
Six – Seven bedrooms 1,856 351 2,207 35%
Eight or More bedrooms 1,373 254 1,627 26%
Total Households 4,657 1,688 6,345 100%
SOURCE: U.S. Census ACS 5-Year Estimate, Table S2504, 2022 Packet Pg. 1300
Section 1.0 Housing Needs Assessment 1-35 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Resources Available
Large households in the City of Patterson can benefit from general programs and services for lower and moderate-income persons, including the Stanislaus County Regional Housing Authority Housing Choice Voucher program, and various community and social services provided by nonprofit organizations in the region. The following regional service providers and programs are available to assist Patterson’s large households:
▪ City of Patterson First Time Homebuyer Program: The program is designed to help make homeownership more accessible to first-time buyers in the community, providing critical support for down payments or closing costs;
8 ▪ Patterson Family Resource Center: Located at 1010 Las Palmas Avenue, Suite E, Patterson, CA 95363, provides essential support services for low-income families, including food assistance, utility support, health and mental health services, and access to community resources like parenting classes and employment support;
9 and
▪ Stanislaus Regional Housing Authority Housing Choice Voucher Program: The program helps low-income families, the elderly, and disabled individuals afford decent, safe, and sanitary housing in the private market by subsidizing a portion of their rent based on their income. 10 To encourage the development of family friendly housing, the City has included Program 4.5, which commits the City to incentivizing developers to construct larger multi-family residential units (four or more bedrooms), as well as the development of on-site amenities that meet the needs of multigenerational households, such as usable outdoor space and computer labs (see Chapter 3).

Households with Children, Single Parent Households, and 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. Femaleheaded households can have lower incomes and higher living expenses and may lack the resources needed for adequate childcare or job training services, often making the search for affordable, decent, and safe housing more difficult.

Table 1-35 reports the number of households with children by type and poverty in Patterson in 2022. Households with children represented approximately 50.6 percent of all households in Patterson, totaling 3,213 households. Among these, single-parent households comprised 31.3 percent, of which 18.6 percent were female-headed and 12.6 percent were male-headed without a spouse. Regarding poverty, 7.3 percent of households with children were below the poverty line. 8 https://www.ci.patterson.ca.us/147/First-Time-Homebuyer-Program 9 https://www.centerforhumanservices.org/what-we-do/family-resource-centers/patterson/ 10 https://stanregionalha.org/programs/housing-choice-voucher/ Packet Pg. 1301
Section 1.0 Housing Needs Assessment 1-36 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Notably, single-parent households accounted for 5.5 percent of households in poverty, with only female-headed households contributing to this figure. No male-headed households without a spouse were below the poverty line. This data underscores the prevalence of households with children and highlights the economic challenges faced by single-parent families, especially those led by femaleheaded households.

Table 1-35 Households with Children by Type and Poverty (2022), City of Patterson Household Type Total Percent of Total
Households
1 Number of
Households Below
Poverty
Percent of Total
Households in
Poverty2
Households with Children 3,213 50.6% 235 7.3%
Single Parent Households 1,990 31.3% 177 5.5%
Female-Headed, no spouse 1,185 18.6% 177 5.5%
Male-Headed, no spouse 805 12.6% 0 0.0%
SOURCE: U.S. Census ACS 5-Year Estimate, Table S2504, Table DP02, 2022 NOTES: 1 Based on 6,345 total households.
2 Based on total households with children.

Resources Available
Limited household income constrains the ability of single-parent households to afford adequate housing, childcare, healthcare, and other necessities. The Center for Human Services Patterson Family Resource Center provides resources and referrals to families in need and partners with CalFresh, MediCal, and CalWorks, which provide assistance ranging from government food benefits to cash assistance to meet basic family needs. They also provide education, employment and training programs to assist a family’s move to self-sufficiency.

Single parent households in Patterson can also benefit from general programs and services for lower-and moderate-income persons, including the Stanislaus Regional Housing Authority Housing Choice Voucher program, and various community and social services provided by non-profit organizations in the region. The following regional service providers and programs are available to assist Patterson’s single parent households:
▪ Patterson Head Start - Central California Child Development Services (CCCDS): Located at 456 Eureka Street, Patterson, CA 95363, this center offers Head Start programs tailored to the needs of families, including both regional and migrant services. The program focuses on school readiness and offers comprehensive services in education, health, and nutrition; 11 11 https://cccds.com/wp/contacts/
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Section 1.0 Housing Needs Assessment 1-37 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 ▪ Del Puerto Child Development Center: Situated at 640 M Street, Patterson, CA 95363, this center is part of the Stanislaus County Office of Education's network of Head Start, Early Head Start, and Migrant Head Start programs. The services here also include early childhood education and developmental support for children from low-income families; and ▪ Naomi’s House: Located at 407 South 4th Street, Patterson CA 95363, this center provides 20 beds for women and children, along with weekday day programs that include lunch, shower facilities, hygiene kits, and clean clothing. Additional assistance, such as obtaining Social Security cards, driver's licenses, state IDs, Medi-Cal, CalFresh, and registering for low-income housing in Stanislaus County, is available on a case-by-case basis. The center also offers financial literacy workshops twice a week, in partnership with Oak Valley Bank, to help low-income families open checking and savings accounts. Employment support is a key focus, with the center helping residents access trade programs or pursue a GED to improve their job prospects.

Additionally, the City of Patterson offers a variety of youth programs designed to engage and support young residents.12 These include organized youth sports such as basketball, soccer, and baseball, focusing on skill development, teamwork, and sportsmanship. For teens, the city provides programs like the Youth Action Commission (YAC), which promotes leadership and community involvement through activities like event planning and community service. Additionally, the Teen Outdoor Experience offers opportunities for teens to explore nature and learn about environmental careers, including field trips and leadership training. These programs aim to foster a sense of community, personal growth, and healthy living among Patterson's youth.

Farmworkers
Farmworkers are traditionally defined as people whose primary incomes are earned through permanent or seasonal agricultural labor. Farmworkers are generally considered to have special housing needs due to their limited income and the often unstable nature of their employment. In addition, farmworker households tend to have high rates of poverty, live disproportionately in housing that is in the poorest condition, have extremely high rates of overcrowding, and have low homeownership rates.

Estimating the number of farm workers at any given time is challenging due to high turnover, varying employment types (seasonal or permanent), and different roles (processing plant workers or field laborers). Migrant and seasonal farm workers often lack fixed addresses, work intermittently across various jobs, and have only casual ties to employers. Many reside in remote rural areas, may have limited English proficiency and educational opportunities, and are cautious about interacting with government agencies, which can make data collection more challenging. Inaccurate data hampers efforts to address their housing and service needs. Farm workers typically have the lowest family income, highest poverty rates, low educational attainment, and one of the lowest rates of health insurance coverage, with most being noncitizens. 12 https://www.ci.patterson.ca.us/218/Recreation-Community-Services Packet Pg. 1303
Section 1.0 Housing Needs Assessment 1-38 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Farmworkers in California
The University of California, Merced, published the Farmworker Health Study (FWHS)13 in 2022, funded by the California Department of Public Health. The FWHS study surveyed 1,242 California farmworkers across five major regions, including the San Joaquin Valley, Upper Central Coast (Salinas Valley), Imperial and Coachella Valley, Sonoma/Napa Counties, and Lower Central Coast (Santa Barbara region), capturing a profile largely representative of the broader farmworker population. The sample was overwhelmingly Latino (99 percent), foreign-born (91 percent), and low-income. Unlike broader studies, FWHS over-sampled women and Indigenous workers, who often experience lower wages and greater employment precarity. Notable demographic differences included a higher proportion of females (56 percent) and Indigenous participants compared to the American Community Survey (ACS) and National Agricultural Workers Survey (NAWS) datasets, though median age, marital status, and years spent in the U.S. were comparable.

The study found that farmworker households experience significant challenges, including overcrowding and low incomes. The median household size of four exceeded the California average, with 29 percent of households accommodating six or more people. Children were prevalent, with 70 percent of respondents living in households with minors, yet only 2 percent reported children working. The median household income of $25,000 starkly contrasted with the ACS-reported $62,021, and more than half of respondents supported family members outside their households.

Financial insecurity was widespread, with 62 percent struggling to pay for food or bills during the pandemic, and food insecurity rates exceeding 40 percent.

Housing conditions further compound challenges, as 92 percent of respondents were renters, predominantly in single-family homes. Farmworkers reported issues such as poor water quality, inadequate ventilation, and pest infestations, exacerbated by climate change and substandard housing. Despite being renters, only 2 percent relied on employers to subsidize housing costs, differentiating them from H-2A migrant workers.14 These conditions underscore the vulnerability of California’s farmworker population and the systemic barriers they face in securing adequate living standards and financial stability. Further, this data brings to light the gaps in data collection and reporting on special needs groups like farmworkers, providing a better understanding of farmworkers in the state.

Farmworkers in Stanislaus County
The U.S. Census of Agriculture provides data at the state and county levels. Therefore, the data presented is for Stanislaus County. Permanent workers are defined as those hired for 150 days or more and seasonal workers are defined as those that are hired for less than 150 days. According to the 2022 U.S. Census of Agriculture, there were approximately 12,064 workers (hired labor) and 13 https://clc.ucmerced.edu/sites/clc.ucmerced.edu/files/page/documents/fwhs_report_2.2.2383.pdf 14 https://www.dol.gov/agencies/eta/foreign-labor/programs/h-2a Packet Pg. 1304
Section 1.0 Housing Needs Assessment 1-39 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 1,918 unpaid workers in Stanislaus County. Of the 12,064 hired workers, more than half (7,384 workers, 61 percent) were employed for 150 days or more, while the other 39 percent of workers were hired for less than 150 days.15
Table 1-36 reports both ACS 5-year estimate farmworker data for Patterson and U.S. Census of Agriculture farmworker data for Stanislaus County in 2022. As shown, Patterson and Stanislaus County had similar rates of hired farmworkers in 2022, 4 percent and 5 percent, respectively.

Table 1-36 Farmworkers, 2022, City of Patterson and Stanislaus County Jurisdiction Total Number of
Workers
Percent of
Workers Industry
City of Patterson 374 4% Agriculture, forestry, fishing, hunting, and mining Stanislaus County 12,064 5% Agriculture, forestry, fishing, hunting, and mining SOURCE: U.S. Census ACS 5-Year Estimate, Table DP03, 2022; U.S. Census of Agriculture, Table 7. Hired Farm Labor – Workers and Payroll, 2022 NOTE: There is a discrepancy between data reported in the ACS 5-Year Estimate data and U.S. Census of Agriculture for Stanislaus County. Table reports U.S Census of Agriculture data for Stanislaus County.

Resources Available
In Patterson, only 4 percent of the city’s employment is comprised of agriculture and natural resources. Nonetheless, the City shares the responsibility for farmworker housing as farmworkers may work within 75 miles of agricultural land uses (including dairy, vineyards, and produce) and the City is within 75 miles of these uses. While HCD has no established metrics, the United States Department of Agriculture, (USDA) considers farmworkers that work at a specific location within 75 miles of their home to be “settled” and thus permanent members of their home community.

The Office of Migrant Services (OMS) oversees 24 Migrant Housing Centers across California. The Migrant Farmworker Housing Program, established by OMS, provides safe, decent, and affordable seasonal rental housing for migrant farmworker families during peak harvest season. The centers, operated under contract according to OMS Regulations, function for 180 days annually, with possible extensions subject to OMS approval.

The Stanislaus Regional Housing Authority is contracted to manage the Patterson Migrant Farmworker Housing Center, offering 40 rental units.16 The units range in size and price from 1- bedroom ($11/day) to 4-bedroom units ($12.50/day). A security deposit of $100 is required, and all utilities are included in the rental rate. As of August 2024, the Stanislaus Regional Housing Authority reported that all 40 units were occupied, with 18 households classified as very low-income, earning at or below 50 percent of the Area Median Income (AMI), and 22 households classified as lowincome, earning at or below 60 percent of the AMI.17 15 U.S. Census of Agriculture, Table 7. Hired Farm Labor – Workers and Payroll, 2022 16 https://stanregionalha.org/migrant-housing/
17 Stanislaus Regional Housing Authority, Miriam Giebeler, email dated August 29, 2024.

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Section 1.0 Housing Needs Assessment 1-40 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 The Migrant Education Program, funded under the Every Student Succeeds Act (Title I, Part C), aims to provide supplementary educational and support services to eligible migratory children and youth. The program's objective is to ensure that all migratory children meet challenging academic standards and graduate with a high school diploma or equivalent, preparing them for responsible citizenship, further learning, and productive employment. Several schools in Patterson participate in the Migrant Education Program, including West Valley Learning Center, Apricot Valley Elementary School, Grayson Elementary School, Las Palmas Elementary School, Northmead Elementary School, Walnut Grove Elementary School, Creekside Middle School, Del Puerto High School, and Patterson High School.

To encourage the development of housing types suitable for lower-income households, including farmworkers, the City will implement the following programs:
▪ Program 1.6: Affordable Housing Development;
▪ Program 1.10: Amend Residential Development Standards to Remove Barriers to Multi-family Residential Development;
▪ Program 4.10: Single-Room Occupancy Units (SROs);
▪ Program 4.11 Employee and Farmworker Housing; and
▪ Program 4.12: Accessory Dwelling Units.

Additionally, the City has developed Program 5.3 proposing actions to affirmatively market fair housing resources, including marketing affordable housing listings as they become available, coordinating outreach with local non-profit organizations who have direct contact with special needs groups, and incentivizing developers to construct affordable residential units (see Chapter 3).

The City of Patterson is aware of the Statewide Farmworker Housing Needs Survey that HCD launched in compliance with the requirements of AB 1654 (Rivas, Chapter 638, Statutes of 2022), and as more information becomes available regarding farmworker housing needs, the City will update the policies and programs to further accommodate the needs of farmworkers.

Persons Experiencing Homelessness
Homelessness in California is a continuing and growing crisis. Individuals and families experiencing homelessness are without permanent housing largely due to a lack of affordable housing.

Homelessness is often compounded by a lack of job training and supportive services to treat mental illness, substance abuse, or domestic violence.

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Section 1.0 Housing Needs Assessment 1-41 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-37 presents the recorded homeless population in the City of Patterson and Stanislaus County from 2018 to 2024, based on the County's annual Point-in-Time Homeless Counts (PIT).

During this period, Patterson's homeless population fluctuated, peaking at 78 homeless persons in 2020 before gradually declining to 61 homeless persons by 2024. In contrast, Stanislaus County saw a significant rise in its homeless population, increasing from 1,356 homeless persons in 2018 to a peak of 2,927 homeless persons in 2021. Although there was a slight decrease after 2021, the county's homeless population remained above 2,000 through 2024. The data suggests that while Patterson experienced some variability in its homeless population, Stanislaus County faced a more substantial and sustained increase, particularly around 2020 and 2021. The fluctuations in Stanislaus County's homeless population between 2020 and 2021 can likely be attributed to the economic impact of the COVID-19 pandemic and subsequent government interventions. The increase in 2020 likely resulted from job losses, reduced income, and evictions caused by the pandemic. However, the decrease in 2021 may have been due to relief measures such as eviction moratoriums, emergency rental assistance, and expanded social safety nets, as well as efforts to temporarily house homeless individuals to prevent the spread of the virus.

Table 1-37 Homeless Population (2018-2024), City of Patterson and Stanislaus County Jurisdiction
Sheltered/Unsheltered Population
2018 2019 2020 2021 2022 2023 2024
City of Patterson 37 76 78 - 55 67 61
Stanislaus County 1,356 1,923 2,107 2,927 1,857 2,091 2,052 SOURCE: Stanislaus County Point-in-Time (PIT) Count, 2018-2024 Table 1-38 reports the housing inventory count in the Turlock, Modesto/Stanislaus County Continuum of Care (CoC) region. The 2023 Housing Inventory Count for Stanislaus County18 reports a total of 2,125 year-round beds across various types of shelters and housing programs.

Emergency shelters, safe havens, and transitional housing account for 1,164 of these beds, including 672 adult-only beds and 43 child-only beds. Permanent housing options provide 961 beds, with permanent supportive housing offering the majority at 480 adult-only beds. There are also 32 beds available through rapid re-housing programs. The inventory includes 214 family units and 702 family beds, catering to households with at least one adult and one child. Additionally, there are 125 seasonal beds and 25 overflow/voucher beds to accommodate varying needs. This data indicates a comprehensive approach to addressing homelessness in Stanislaus County, with a significant emphasis on both emergency and permanent supportive housing options. 18 https://files.hudexchange.info/reports/published/CoC_HIC_CoC_CA-510-2023_CA_2023.pdf Packet Pg. 1307
Section 1.0 Housing Needs Assessment 1-42 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 1-38 Housing Inventory Count (2023), Turlock, Modesto/Stanislaus County CoC Type of
Shelter
Family
Units1
Family
Beds1
Adult-Only
Beds
ChildOnly
Beds
Total
Yr-Round
Beds
Seasonal Overflow/
Voucher
Emergency, Safe Haven and Transitional Housing
Emergency
Shelter 61 211 672 43 926 125 25
Transitional 31 92 146 0 238 n/a n/a
Subtotal 92 303 818 43 1,164 125 25
Permanent Housing
Permanent
Supportive
Housing
71 225 480 0 705 n/a n/a
Rapid ReHousing 9 28 4 0 32 n/a n/a
Other Permanent
Housing 42 146 78 0 224 n/a n/a
Total 122 399 562 0 961 n/a n/a
Grand Total 214 702 1,380 43 2,125 125 25
SOURCE: U.S. Department of Housing and Urban Development (HUD), Continuum of Care (CoC) Homeless Assistance Programs, Housing Inventory County Report (2023).

NOTES: 1 Family Units and Family Beds categories include units and beds for households with one adult and at least one child under age 18.

Resources Available
According to PIT counts dating back to 2018, Patterson has had a relatively low number of persons experiencing homelessness within the city compared to the county. As a result, most resources for the homeless population are provided at the county level. However, access to transportation, public services, and resources in Patterson may present a challenge to the those experiencing homelessness, despite the limited need.

The Stanislaus Regional Transit Authority (StanRTA) operates two bus routes, Route 45, that provides service from Patterson to the cities of Newman and Turlock and Route 40, that provides service to Modesto. Additionally, the BART Commuter bus provides access to the east from Patterson to Turlock and northwest to Pleasanton BART station. 19 All bus stops and the commuter
are central to the downtown area of the city. Therefore, challenges may exist for residents in need of transportation services that live in the outskirts of the city. This is a common obstacle for cities located in a more rural setting. The City Mayor and City Manager hold regular meetings with StanRTA to discuss enhancements to existing bus routes and opportunities for system expansion, aimed at supporting residential development on both the west and east sides of State Route 33. 19 https://www.stanrta.org/101/Routes-Schedules
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Section 1.0 Housing Needs Assessment 1-43 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Local knowledge indicates that most of Patterson's homeless population is concentrated near the city's urban core in close proximity to services and public transit. Since 2012, the City of Patterson has supported Helping Others Sleep Tonight (HOST) House, a nonprofit organization dedicated to addressing homelessness in the city. The City provided HOST with a low-interest loan to purchase a house for use as transitional housing. Located at 405 South 4th Street, the HOST House opened in 2013 during the winter season when conditions were most severe. Since then, the City has continued to support HOST House, allowing it to remain open more frequently as needs have increased. In 2017, the City and HOST collaborated to offer educational classes at the facility, aimed at helping participants transform their lives by developing skills, competencies, and work habits that lead to financial self-sufficiency. By 2018, the City Council agreed to waive HOST House's monthly loan payments for every month it remains open, effectively forgiving the organization's debt. This support has enabled HOST House to provide services year-round.

The Center for Human Services operates the Patterson Family Resources Center located at 1010 W Las Palmas Avenue, Suite E in Patterson, which provides services to low-income residents of Patterson. Services provided include resource and referral; case management; counseling referral; assessment/child development training; behavioral health services; translation assistance; parent education and school readiness classes; utility assistance; and CalFresh/MediCal/CalWorks benefit applications and assistance. All services are provided at no cost. This organization helps to address the needs of lower-income and housing insecure residents in Patterson. Further, the center is located approximately 300 feet from the nearest bus stop, making it accessible by public transportation.

In addition to the resources listed above, the following regional facilities offer supportive housing services in Stanislaus County for homeless and special needs low-income persons:
▪ Modesto Women’s Mission: 1400 East Yosemite Boulevard, Modesto; ▪ Children’s Crisis Center – Marsha’s House: Ceres;
▪ Stanislaus County Habitat for Humanity: 630 Kearney Avenue, Modesto; ▪ Hutton House: 201 Jennie Street, Modesto;
▪ Haven Women’s Center of Stanislaus: 301 Starr Avenue, Turlock; ▪ We Care Program: 221 S Broadway, Turlock; and
▪ The Salvation Army Shelter: 320 9th Street, Modesto.

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Section 1.0 Housing Needs Assessment 1-44 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025

1.7 Publicly Assisted Housing
Stanislaus Regional Housing Authority
The Stanislaus Regional Housing Authority administers the Housing Choice Voucher (HCV) program for Patterson residents. According to Housing and Community Development AFFH Data Viewer 2021 data, approximately 33 Patterson households were receiving Housing Choice Vouchers.

Affordable Housing Projects
Housing developments utilizing federal, state, and/or local programs, including state and local bond programs, Low-Income Housing Tax Credits (LIHTC), density bonus, or direct assistance programs, are often restricted for use as low-income housing and provide another source of affordable housing for a jurisdiction. The City of Patterson has five state and federally subsidized housing developments that include deed-restricted affordable rental units. Together, these developments provide 254 affordable units.

Units At-Risk of Converting to Market-Rate Housing
According to California Government Code Section 65583 (a) (8), (c) (6), jurisdictions must evaluate the potential for currently rent restricted low-income housing units to convert to non-low-income housing in 10 years and propose programs to preserve or replace these units. For this Housing Element, this 10-year analysis period covers 2023 through 2033. This section identifies the city’s assisted units “at-risk” of conversion to market-rate housing.

Table 1-39 reports publicly assisted affordable housing units in Patterson. As shown, there are a total of 254 deed-restricted affordable units in Patterson. Of these, none are anticipated to expire until 2048 at the earliest. The California Housing Partnership has reported a low level of risk of converting to market rate for all developments included in Table 1-39.

Preserving Existing Affordable Housing Stock
To maintain the existing affordable housing stock, the City can preserve existing affordable units and facilitate the development of new units. Depending on the circumstances of at-risk projects, different options may be used to preserve or replace the units. Preservation options to ensure the viability and ongoing supply of affordable units typically include: 1) construction of replacement units; 2) provision of rental assistance to tenants 3) transfer of the project to nonprofit ownership; and 4) purchase of affordability covenants. These options are described below.

Construction of Replacement Units
The construction of new affordable housing units is a means of replacing the at-risk units should they be converted to market-rate units. The cost of developing housing depends on a variety of factors, including density, size of the units (i.e. square footage and number of bedrooms), location, labor, materials and land costs, and type of construction. The City is implementing a number of Packet Pg. 1310
Section 1.0 Housing Needs Assessment 1-45 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 programs to encourage development of new affordable units to increase the City’s affordable housing stock (see Chapter 2). The City estimates the average cost of construction for replacement units to be approximately $167.00 per square foot.

Table 1-39 Publicly Assisted Affordable Housing Units (2024), City of Patterson Development Addresses Affordable
Units
Estimated Affordability
End Year
Risk
Level
Stonegate Village Phase II 625 Logan Way 71 2073 Low
Stonegate Village Phase I 625 Logan Way 65 2073 Low
Patterson Place Apartments 670 North 6th Street 39 2068 Low El Solyo Village 850 N. 2nd Street 46 2048 Low
Patterson Farm Labor Center
Rehabilitation 354 Chase Street 33 10/22/2068 Low
Total 254 Low
SOURCE: California Housing Partnership, Preservation Database (August, 2024).

NOTE: 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. 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 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.

Rental Assistance
Rental subsidies using non-federal (state, local, or other) funding sources can be used to maintain affordability of at-risk units. These rent subsidies can be structured to mirror the federal Housing Choice Voucher (Section 8) program. Under Section 8, HUD pays the difference between what tenants can pay (defined as 30 percent of household income) and what HUD estimates as the fair market rent on the unit. The feasibility of this alternative is highly dependent on the availability of other funding sources necessary to make rent subsidies available and the willingness of property owners to accept rental vouchers if they can be provided. Housing Choice Vouchers are available through the Stanislaus Regional Housing Authority.

Transfer of Ownership
Transferring ownership of an at-risk project to a nonprofit housing provider is generally one of the least costly ways to ensure that at-risk units remain affordable for the long term. By transferring property ownership to a nonprofit organization whose mission includes affordable housing, the risk Packet Pg. 1311
Section 1.0 Housing Needs Assessment 1-46 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 of losing the low-income restrictions is minimized, and the project would become potentially eligible for a greater range of governments assistance. The Stanislaus Regional Housing Authority is the most likely entity to acquire ownership of at-risk units.

Purchase of Affordability Covenants
Another option to preserve the affordability of at-risk projects is to provide an incentive package to the owners to maintain the projects as affordable housing. Incentives could include bringing down the interest rate on the remaining loan balance, providing loans for capital improvements, and/or supplementing subsidies. The feasibility of this option depends on whether the complex is too highly leveraged. By providing lump sum financial incentives or ongoing subsidies in the form of rents or reduced mortgage interest rates to the owner, the City can ensure that some of all of the units remain affordable.

Cost Comparisons
The above analysis attempts to estimate the cost of preserving the at-risk units under assorted options. However, because projects have different circumstances and therefore different options available, a direct comparison would not be appropriate. In general, providing additional incentives/subsidies to extend the affordability covenant would require the least funding over the long run, whereas the construction of new units would be the costliest option.

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Section 2.0 Housing Constraints Assessment 2-1 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025

2.0 Housing Constraints Assessment

2.1 Governmental Constraints
Governmental constraints are potential and actual policies, standards, requirements, fees, or actions imposed by the various levels of government on development, which serve to ensure public safety and welfare with respect to housing construction and land use issues. Federal and state programs and agencies play a role in the imposition of non-local governmental constraints and are beyond the influence of local government, and therefore cannot be effectively addressed in this document.

Transparency
In accordance with Assembly Bill (AB) 1483, the City provides zoning and development standards on the City’s website by reference to the City’s Municipal Code.1 Residential Development Fee Schedules, Development Impact Fees,2and links to the Zoning Map,3 Design Standards, General Plan,4 Planning Applications, and Application Checklists are also readily available on the City’s website through the Community Development Department.

General Plan Consistency
The Housing Element is closely tied to other General Plan elements, including the land use, circulation, open space, and safety elements. To ensure internal consistency throughout the planning period, Program 1.16 requires the City to conduct periodic reviews of General Plan elements and municipal code to identify any potential inconsistencies with the Housing Element. Where inconsistencies are identified, the City will initiate appropriate amendments to the municipal code and/or updates to relevant general plan policies and programs. This ongoing review process will support the coordinated implementation of housing goals alongside broader community planning objectives.

Land Use Element
Each city and county in California must prepare a comprehensive, long-term General Plan to guide its future. The Land Use Element of a General Plan designates the general distribution, location, and extent of uses for land planned for housing, business, industry, open space, and public or 1 https://www.pattersonca.gov/275/View
2 https://www.pattersonca.gov/156/Residential-Commercial-Fee-Schedules 3 https://www.pattersonca.gov/157/Zoning-Districts
4 https://www.pattersonca.gov/145/General-PlanCity-Maps Packet Pg. 1313
Section 2.0 Housing Constraints Assessment 2-2 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 community facilities. As it applies to housing, the Land Use Element establishes a range of residential land use categories, specifies development densities, and suggests the types of housing appropriate in a community.

A number of factors, governmental and non-governmental, affect the supply and cost of housing in a local housing market. The governmental factor that most directly influences these market conditions is the allowable density range of residentially designated land. In general, higher densities allow developers to take advantage of economies of scale, reduce the per-unit cost of land and improvements, and reduce development costs associated with new housing construction.

Reasonable density standards ensure the opportunity for higher-density residential uses to be developed within a community, increasing the feasibility of producing affordable housing, and offer a variety of housing options that meet the needs of the community.

The City of Patterson General Plan Land Use Element and General Plan Map provide for a range of residential building types and densities in various areas of Patterson. Table 2-1 summarizes the land use designations with the city that allow residential uses, as well as their permitted densities.

Table 2-1 General Plan Residential Land Use Designations Land Use Designation Corresponding
Zoning District Intended Use Permitted Density (du/acre) Low Density Residential LR Single-Family 1.1—5.0
Downtown Residential DR
Single-Family, Duplexes,
ADUs, Emergency Shelters,
Transitional Housing

3.1—10.0
Medium Density Residential MR
Single-Family, Multi-Family,
Emergency Shelters,
Transitional Housing

5.1—12.0
High Density Residential HR
Single-Family, Multi-Family,
Group Quarters, Emergency
Shelters, Transitional
Housing

12.1—20.0
Estate Residential ER Single-Family, ADUs See note1
SOURCE: City of Patterson, 2024
NOTE: 1 Allows one dwelling unit per 0.5 acres up to one dwelling unit per 3 acres except for parcels subject to the safety or noise restrictions of an adopted Airport Land Use Plan in which case the minimum parcel shall be 10 acres.

Zoning Ordinance
The Zoning Ordinance is the primary tool for implementing the General Plan Land Use Element. It is designed to protect and promote public health, safety and welfare, as well as to promote quality design and quality of life. Patterson’s residential zoning districts control both the use and development standards of each residential lot or parcel, thereby influencing the development of housing. The City has established five residential zoning districts, including Estate Residential (ER), Packet Pg. 1314
Section 2.0 Housing Constraints Assessment 2-3 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Low Density Residential (LR), Downtown Residential (DR), Medium Density Residential (MR), and High Density Residential (HR). There are also five commercial districts that permit residential uses, including Neighborhood Commercial (NC), Highway Service Commercial (HSC), Downtown Core (DC), General Commercial (GC), and Medical Professional Office (MPO). In addition to the underlying zoning, the City has also established four overlay districts, including Planned Development (PD), Historic Preservation, Mixed-Use (MU), and Mixed-Use Hillside (MUH) with special development standards and/or permit processing requirements.

Development Standards
Zoning regulations also control features such as the height and bulk of buildings, lot area, yard setbacks, density, etc. If development standards are significantly more rigid than private sector design standards and do not allow sufficient flexibility in their application, then development costs can increase and housing production can decrease. Table 2-2 and Table 2-3 summarize the city’s zoning districts that permit residential uses and their development requirements.

Multi-Family Residential Development Standards
The City's High Density Residential Zoning Districts are designated for high density residential uses, including townhomes, condos, multi-family apartments, single-room occupancies (SROs), and transitional and supportive housing. The City’s High Density Residential Zoning Districts conditionally permit single-family uses. This can function as a deterrent to single-family uses in zoning districts that allow greater density and can encourage redevelopment of sites with multifamily projects. Single-family uses are directed to specific zoning districts as permitted uses to avoid competing with the development of higher density uses like multi-family residential.

The High Density Residential Zoning District is designed for higher-density residential developments requiring a minimum lot size of 10,000 square feet and densities ranging from 12.1 to

20.0 dwelling units per acre. The maximum building height is 45 feet (three stories), and lot coverage is capped at 75 percent, with 60 percent allowed for front yards. Setbacks are more stringent, with 25 feet required for the front, 15 feet for the living area, 15 feet for side setbacks (increasing to 25 feet on corner lots), and 20 feet for the rear. These standards allow for denser and taller multi-family developments but still require substantial setbacks and lot sizes, which could limit the number of units that can be developed on smaller parcels. Further, the permitted densities and height limits may pose constraints to future development of affordable multi-family residential units.

The Neighborhood Commercial Zoning District permits a minimum density of 3.1 to a maximum of 10 dwelling units per acre, with a maximum building height of 35 feet (two stories). Lot coverage is capped at 75 percent, and the front setback requirement is a maximum of 10 feet. There are no specific side or rear setback requirements, nor are there additional specifications for living area setbacks. This zoning is designed to support a mix of commercial uses that serve the local community while integrating with residential areas.

Packet Pg. 1315
Section 2.0 Housing Constraints Assessment 2-4 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 2-2 Existing Residential Development Standards by Zoning District Zoning
District
Lot Area
(sq. ft.)
Density
(du/ac)
Building
Height (ft.) Lot Dimensions Lot Coverage
Front
Setback
General
(ft.)
Front
Setback
Living
Area (ft.)
Side Setback (ft.)
Rear
Setback
(ft.)
Estate
Residential
Minimum:
12,000
Corner
Minimum:
14,000

1.0 (max)1
Maximum: 32’
(2 stories)2
Interior lot: 60’
Corner lot: 70’
Cul-de-sac average width: 60’
Cul-de-sac frontage: 40’
Depth: 100’
Maximum: 40%
Maximum front
yard: 60%
Maximum
footprint: 25%
20’ 15’ Interior lot: 5’
Street side/Corner lot: 10’
Rear yard: 20’
Alley ROW: 5’
Low Density
Residential
Minimum: 6,000
Corner
Minimum: 7,000

1.1—5.0 Maximum: 32’
(2 stories)2
Interior lot: 45’
Corner lot: 70’
Cul-de-sac average width: 45’
Cul-de-sac frontage: 35’
Depth: 70’
Maximum: 70%
Maximum front
yard: 60%
Maximum
footprint: 35%
LR-n: 20’
LR-w: 20’
LR-n: 15’
LR-w: 15’
Interior lot: 5’
Street side/Corner lot: 10’
Rear yard: 20’
Alley ROW: 5’
Downtown
Residential
Minimum: 6,000
Corner
Minimum: 7,000

3.1—10.0 Maximum: 45’
(3 stories)2
Interior lot: 45’
Corner lot: 70’
Cul-de-sac average width: 45’
Cul-de-sac frontage: 35’
Depth: 70’
Maximum: 80%
Maximum front
yard: 75%
Maximum
footprint: 35%
20’ 15’
Interior lot: 5’
Street side/Corner lot: 10’
Rear yard: 20’
Alley ROW: 5’
Medium
Density
Residential
Minimum:
9,0001

5.1—12.0 Maximum: 32’
(2 stories)2
Interior lot: 50’1
Corner lot: 70’
Cul-de-sac average width:
50’1
Cul-de-sac frontage: 35’
Depth: 70’
Maximum: 75%
Maximum front
yard: 60%
20’ 15’
Interior lot: 5’
Street side/Corner lot: 10’
Rear yard: 20’
Alley ROW: 5’
High Density
Residential
Minimum:
10,000 12.1—20.0 Maximum: 45’ (3 stories)2
Interior lot: 70’
Corner lot: 70’
Cul-de-sac average width: 70’
Cul-de-sac frontage: 50’
Depth: 100’
Maximum: 75%
Maximum front
yard: 60%
25’ 15’ Interior lot: 15’
Street side/Corner lot: 25
Rear yard: 20’
Alley ROW: 5’
Packet Pg. 1316
Section 2.0 Housing Constraints Assessment 2-5 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Zoning
District
Lot Area
(sq. ft.)
Density
(du/ac)
Building
Height (ft.) Lot Dimensions Lot Coverage
Front
Setback
General
(ft.)
Front
Setback
Living
Area (ft.)
Side Setback (ft.)
Rear
Setback
(ft.)
Neighborhood
Commercial
Minimum:
2,000 3.1—10.0 Maximum: 35’(2 stories) n/a Maximum: 75% Maximum:
10’ n/a n/a n/a
Downtown
Core
Minimum:
2,000 12.1—20.0 Maximum: 45’(3 stories) n/a Maximum:
100%
Maximum:
10’ n/a n/a n/a
SOURCE: City of Patterson, 2024
NOTE: 1 Minimum lot size requirements for single-family units in this district shall be three thousand five hundred square feet. Minimum lot dimensions shall be the same as the minimum dimensions in the LR-n district. 2 Accessory structure permitted maximum height of 12 feet (one story).

Table 2-3 Existing Residential Development Standards – Distance Between Buildings Zoning
District
Distance between
Main Building &
Accessory
Buildings
Distance between
Accessory
Buildings
Distance between
Main Buildings
Distance between any Wall of a
Main Building Containing Living
Room Windows and any other
Wall of a Main Building
Distance between Wall of a SingleFamily Home and Neighboring Single-Family Home (Primary
Structure Only)
Estate
Residential 10’ 10’ 10’ 10’ 15’
Low Density
Residential 10’ 10’ 10’ 10’ LR-n: 10’
LR-w: 15’
Downtown
Residential 10’ 10’ 10’ 10’ 10’
Medium
Density
Residential
10’ 10’ 25’ 35’ n/a
High
Density
Residential
10’ 10’ 25’ 35’ n/a
SOURCE: City of Patterson, 2024
Packet Pg. 1317
Section 2.0 Housing Constraints Assessment 2-6 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 The Downtown Core Zoning District allows for higher density development with a range of 12.1 to 20 dwelling units per acre and permits buildings up to 45 feet (three stories). Minimum lot area requirements are set at 2,000 square feet, and lot coverage can reach up to 100 percent, maximizing the use of available space. The front setback is limited to a maximum of 10 feet, promoting a pedestrian-friendly streetscape. No specific side or rear setback requirements are indicated, which encourages a more continuous and dense urban form, suitable for a vibrant downtown environment.

As shown in Table 2-3, the Medium Density Residential and High Density Residential Zoning Districts require larger distances between buildings (25 feet between main buildings and 35 feet between buildings with living room windows and any other wall, respectively), which can limit the density of multi-family developments. These distances reduce the potential to maximize the number of units on a given parcel, particularly in higher-density residential settings, making it challenging to achieve the upper bounds of allowable densities.

Parking Requirements
Table 2-4 summarizes residential parking requirements in Patterson. Parking requirements do not constrain the development of housing directly. However, parking requirements may reduce the amount of available lot area for residential development. The City determines the required number of parking spaces based on the type and size of the residential unit. While the City's parking standards require covered parking spaces, they do not specifically mandate garages. Carports are also permitted to meet these requirements, providing a cost-effective alternative to garages. Therefore, this flexibility helps prevent additional financial constraints on residential development.

Existing parking requirements for multi-family units and apartments may constrain development. To remove this potential constraint, the City proposes an amendment to the Zoning Ordinance to reduce parking requirements for multi-family residential units and apartments as part of Program 1.9 (see Chapter 3). The City will also provide incentives, including amending the Zoning Ordinance to include bike parking and bus passes for the first 10 years of occupancy for new affordable units (Program 1.9).

Additionally, the City provides reduced parking requirements for affordable housing projects consistent with State Density Bonus Law. However, the recently passed AB 2162 removes minimum parking requirements for supportive housing within 0.5 mile of a public transit stop. This Housing Element includes Program 4.9 to amend the Zoning Ordinance to comply with AB 2162 (see Chapter 3). These actions are rooted in removing parking related constraints to the development of multi-family residential and increasing resident mobility.

Packet Pg. 1318
Section 2.0 Housing Constraints Assessment 2-7 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 2-4 Existing Residential Parking Requirements
Type of Residential Development Required Parking Spaces/Dwelling Unit Single-Family & Multi-Family Residential
Studio or 1-bedroom: 1 covered space
2-bedrooms: 1 covered space and 1 uncovered space
3+ bedrooms: 2 covered spaces
Apartments
Studio: 1 covered space
1-bedroom: 1.5 (1 covered) spaces
2+ bedrooms: 1 covered space and 1 uncovered space
3+ bedrooms: Same as 2-bedroom, plus 1 additional guest parking space for every 3-bedroom unit
Senior Housing
Same number of spaces required for dwellings or apartments; however, the number of spaces may be reduced if the planning commission makes a finding that not all spaces are needed* SOURCE: City of Patterson, 2024
NOTES: * In making this finding, the commission shall consider: (1) the anticipated vehicle usage and characteristic visitor patterns of the occupants; (2) proximity of the building or site to shopping, service, health care facilities, and other transportation facilities; (3) proximity of public and commercial parking areas; (4) effect a reduced number of spaces would have on existing and anticipated parking conditions in the neighborhood; and (5) conditions deemed relevant by the planning commission.

Covered spaces may include a carport or a garage; however, garages are not a requirement to comply with parking standards.

Cumulative Impacts of Development Standards
The combination of setbacks, height limits, lot coverage restrictions, low development densities, and required building separation in the High Density Residential, Neighborhood Commercial, and Downtown Core Zoning Districts may pose challenges to maximizing multi-family development potential. These constraints can limit the number of units that can be developed on a site, potentially hindering efforts to increase housing density and supply in these areas. To remove barriers to the development of affordable housing types, including multi-family residential, transitional and supportive housing, single-room occupancy units, etc., the City is committed to implementing the changes listed in Table 2-5. The proposed changes to development standards do not apply to the Master Plan areas.

Program 1.10 proposes these amendments to the Zoning Code and establishes a schedule of actions and timelines from implementation (see Chapter 3). Implementation of the aforementioned measures will ensure that the development of affordable residential housing types is not hindered by local development standards.

Overlay Districts
The City has four overlay districts, Planned Development (PD), Historic Preservation (HP), Mixeduse (MU), and Mixed-Use Hillside (MUH). These overlay zoning districts are designed to supplement the use regulations and/or development standards of the applicable underlying base zoning district by recognizing distinctive areas of the city that have special and unique social, architectural, or environmental characteristics that require special considerations not otherwise adequately provided by the underlying base zone applicable to the property. Each overlay district is described below.

Packet Pg. 1319
Section 2.0 Housing Constraints Assessment 2-8 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 2-5 Proposed Changes to Development Standards, City of Patterson Zoning District Existing Standards Proposed Standards
High Density Residential
Density: 12.1—20.0
Front setback: 25’
Rear setback: 20’
Height Maximum: 45’ (3 stories)
Distance between main buildings: 25’
Distance between any wall of a main
building containing living room windows
and any other wall of a main building: 35’
Density: 20.1—35.0
Front setback: 15’
Rear setback: 15’
Height Maximum: 45’ (4 stories)
Distance between main buildings: 15’
Distance between any wall of a main building
containing living room windows and any other
wall of a main building: 20’
Neighborhood Commercial
Density: 3.1—10.0
Height Maximum: 32’ (2 stories)
Density: 12.0—20.0
Height Maximum: 32’ (3 stories)
Downtown Core Density: 12.1—20.0
Height Maximum: 45’ (3 stories)
Density: 20.0—35.0
Height Maximum: 50’ (4 stories)
Development Type Parking Requirements
Single-Family & MultiFamily Residential
Studio or 1-bedroom: 1 covered space
2-bedrooms: 1 covered space and 1
uncovered space
3+ bedrooms: 2 covered spaces
Studio or 1-bedroom: 1 covered space
2-bedrooms: 1.5 covered spaces
3+ bedrooms: 2 covered spaces
Apartments
Studio: 1 covered space
1-bedroom: 1.5 (1 covered) spaces
2+ bedrooms: 1 covered space and 1
uncovered space
3+ bedrooms: Plus 1 additional guest
parking space for every 3-bedroom unit
Studio: 1 covered space
1-bedroom: 1 covered space
2+ bedrooms: 1.5 uncovered spaces
3+ bedrooms: 2 covered spaces
Senior Housing
Same number of spaces required for
dwellings or apartments; however, the
number of spaces may be reduced if the
planning commission makes a finding
that not all spaces are needed*
n/a
SOURCE: City of Patterson, 2024
NOTE: These proposed changes to development standards do not apply to the Zacharias Baldwin Ranch Master Plan areas. * In making this finding, the commission shall consider: (1) the anticipated vehicle usage and characteristic visitor patterns of the occupants; (2) proximity of the building or site to shopping, service, health care facilities, and other transportation facilities; (3) proximity of public and commercial parking areas; (4) effect a reduced number of spaces would have on existing and anticipated parking conditions in the neighborhood; and (5) conditions deemed relevant by the planning commission.

Planned Development Overlay District
The Planned Development Overlay District requires submittal of a Planned Development entitlement application for any proposed development on property zoned Planned Development.

The Planned Development Overlay District is an optional zoning designation designed to offer flexibility in the development of projects and can result in higher densities. Projects with a land area five acres or greater, or projects with construction square footage of 30,000 square feet or greater are Packet Pg. 1320
Section 2.0 Housing Constraints Assessment 2-9 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 subject to the Planned Development review process. The Planned Development entitlement process includes recommendation of the project at a public hearing of the Planning Commission, which is then taken to the City Council for a decision to deny, approve, or conditionally approve the project (Municipal Code Section 18.20.020).

Design objectives within a Planned Development proposal should address the following: building bulk and height, land coverage, visual impact on adjacent areas, and design compatibility with nearby structures and land uses. This includes ensuring harmonious composition of mass, scale, color, texture, relationship to streets, views, and integration of spaces. The proposal should provide an efficient, direct pedestrian circulation system, landscaping, and appropriate treatment of public areas, as well as integrating off-street parking and loading areas into the overall vehicular circulation system. The City Council may impose additional standards, which may be more or less restrictive than those in the code, to protect property values, community amenities, and the general welfare.

These standards may include the following:
▪ Building height limitations;
▪ Restrictions on land coverage by buildings;
▪ Parking ratios and designated areas;
▪ Requirements for vehicular and pedestrian access;
▪ Landscaping plans for trees, shrubs, and turf;
▪ Specifications for fences, walls, and lighting;
▪ Regulations on signs and advertising structures;
▪ Building arrangement and spacing for open spaces;
▪ Off-street loading area requirements;
▪ Use limitations based on parking, noise, dust, odors, fumes, smoke, vibration, glare, or radiation; ▪ Architectural design standards;
▪ Requirement of security instruments to ensure compliance; and ▪ Naming of roads and streets per city policy. (Ord. 767 (part), 2014; Ord. 738 § 1 (Exh. A) (part), 2013).

The City Council's additional standards may impose significant constraints on multi-family residential development by enforcing subjective criteria for building height, land coverage, parking, and architectural design. These subjective standards, aimed at protecting property values and community welfare, could lead to restrictions on the density and design of multi-family housing projects, making it challenging for developers to meet the criteria. The discretionary nature of these standards creates uncertainty, potentially leading to delays, increased costs, and reduced feasibility for multi-family developments, which may not align with the Council's vision for maintaining Packet Pg. 1321
Section 2.0 Housing Constraints Assessment 2-10 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 neighborhood character and minimizing impacts such as noise, traffic, and visual changes. The unpredictability of the approval process may discourage development, making it more difficult to move forward with multi-family projects.

To reduce potential constraints on multi-family residential development, the City proposes Program

1.8, which commits the City to developing Objective Design Standards (ODS) for mixed-use and multi-family residential projects. By implementing these objective standards, the City aims to eliminate subjectivity in the design review process, providing greater certainty for project applicants and developers. ODS are discussed further below.

Master Planned Areas
The City permits the development of master planned areas to enable coordinated, comprehensive planning of specific subareas to achieve various goals, such as protecting unique environmental, historical, architectural, or other significant site features that cannot be adequately preserved through other zoning. Master planning also helps implement specific goals and policies of the general plan, addresses future circulation, drainage, and neighborhood compatibility issues, and provides flexibility beyond conventional zoning regulations.

Approval of a Master Plan requires recommendation from the Planning Commission to the City Council, followed by a public hearing of the City Council for the final decision. The following findings are required for adoption:

1. The proposed master plan is consistent with the goals, policies, and objectives of the general plan; and

2. The proposed master plan meets the requirements set forth in title 18.20.030(E). (Ord. 738 § 1 (Exh. A) (part), 2013).

These required findings of approval do not present significant constraints to development.

Specific Planned Areas
The City allows specific plans to implement the general plan on an area-specific basis, serving as regulatory documents consistent with the general plan. The general plan designates certain new development areas that require a specific plan or master plan to implement its policies. Specific plans are encouraged if they enhance the implementation of the general plan. Approval of a Specific Plan requires a recommendation from the Planning Commission to the City Council, followed by a public hearing of the City Council for the final decision. The following findings are required for adoption:

1. The specific plan is consistent with the goals, policies, and objectives of the general plan, development agreement, or other implementation instrument; and

2. The specific plan will not adversely affect surrounding properties. (Ord. 738 § 1 (Exh. A) (part), 2013).

These required findings of approval do not present significant constraints to development.

Packet Pg. 1322
Section 2.0 Housing Constraints Assessment 2-11 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Historic Preservation Overlay District
The Historic Preservation Overlay District aims to promote public health, safety, and welfare by identifying, protecting, and enhancing buildings, structures, sites, and areas that reflect Patterson's historical, architectural, and aesthetic character. It serves as an overlay to existing zoning districts, providing additional review and development standards for properties of historical significance.

The Planning Commission reviews design plans, building permits, and other applications for construction, alteration, or demolition of designated historic resources, while the City Council holds final approval authority for historic designations. Historic designation criteria and procedures are detailed in Municipal Code Chapter 18.54.

Mixed-Use Overlay District
The Mixed-Use Overlay District is intended to provide flexibility within areas zoned for commercial or office development to allow for residential development. This overlay district allows 100 percent non-residential uses. The Mixed-Use overlay can be applied to all base zoning districts in the Commercial and Medical/Professional Office Districts (as listed in Chapter 18.42). The following development standards are applicable to properties that implement the Mixed-Use Overlay District:
▪ Residential density shall be permitted up to 24 dwelling units per net site acre (in addition to any commercial square footage);
▪ Residential units may be provided in addition to other development permitted or conditionally permitted on the project site;
▪ Residential units may be provided on upper levels of commercial and/or office buildings or may be located in a separate building adjacent to commercial and/or office structures; ▪ No more than 50 percent of all ground floor buildings may be residential development; and ▪ An additional 12 feet of additional building height above the specific height limit is permitted within the applicable zoning district (Ord. 738 § 1 (Exh. A) (part), 2013).

The architectural and site plan review process for projects implementing the Mixed-Use Overlay follows the base zoning district review process outlined in Municipal Code Chapter 18.18.

Mixed-Use Hillside Overlay District
The Mixed-Use Hillside Overlay District is intended to provide hillside development standards.

Areas within the city that allow the Mixed-Use Hillside overlay are identified on the City’s Zoning Map. All property with the Mixed-Use Hillside designation is analyzed to categorize hillsides into five slope categories and establish limits on development as follows:

1. Slope Zone 1 (Five Percent Natural Slope or Less). This is not a hillside condition. Grading with conventional fully padded lots and terracing is acceptable; Packet Pg. 1323
Section 2.0 Housing Constraints Assessment 2-12 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025

2. Slope Zone 2 (Five Percent to 7.99 Percent Slope). Development with grading is permitted in this zone, but existing landforms must retain their natural character. Padded building sites are permitted; however, techniques such as contour grading, combined slopes, limited cut and fill, and split-level architectural prototypes, or padding for the structures only, may be required to reduce grading;

3. Slope Zone 3 (Eight Percent to 14.9 Percent Slope). This is a hillside condition. Special hillside architectural and design techniques that minimize grading are required in this zone. Architectural prototypes are expected to conform to the natural landform by using techniques such as splitlevel foundations of greater than eighteen inches, stem walls, stacking, and clustering;

4. Slope Zone 4 (15 Percent to 29.9 Percent). Development within this zone is limited to no more than the less visually prominent slopes and then only where it can be shown that safety, environmental, and aesthetic impacts can be minimized. The use of larger lots, variable setbacks, and variable building structural techniques such as stepped or pole foundations are expected.

Structures shall blend with the natural environment through their shape, materials, and colors.

Impact of traffic and roadways is to be minimized by following natural contours or using grade separations; and

5. Slope Zone 5 (30 Percent and Over). This is an excessive slope condition and development is prohibited, unless all the following are satisfied: (a) at least 75 percent of the lots or parcels that are the subject of the development application are surrounded by lots or parcels improved with structures; (b) the proposed project is determined to appropriately address slope stability and other geological factors of the site and (c) vegetation fuel management for wildfire protection can be achieved and maintained. (Ord. 738 § 1 (Exh. A) (part), 2013).

The architectural and site plan review process for projects implementing the Mixed-Use Hillside Overlay follows the base zoning district review process outlined in Municipal Code Chapter 18.18.

Zacharias and Baldwin Ranch Master Plan (ZBMP)
Adopted in August 2022, the Zacharias and Baldwin Ranch Master Plan governs two distinct areas in the city’s north and south ends, west of Ward Avenue, with unified development standards to ensure consistency. Grounded in the City’s Municipal Code, the Master Plan incorporates additional development standards and design guidelines to shape residential neighborhoods. These guidelines address key elements such as pedestrian scale, garage placement, streetscape, landscaping, fencing, four-sided articulation, architectural variation and massing, and utility integration. The specific development standards for residential uses within the Master Plan areas are outlined below.

Low Density Residential
Permitted densities range from 3.0 to 5.0 dwelling units per acre, predominantly consisting of singlefamily homes. Typical lot sizes for production housing are 50 x 100 feet. The permitted uses and development standards from the Low Density Residential (LR) Zoning District of the Patterson Zoning Ordinance are applicable in this area.

Packet Pg. 1324
Section 2.0 Housing Constraints Assessment 2-13 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Medium Density Residential
Permitted densities range from 5.1 to 12.0 dwelling units per acre, primarily focusing on production housing, including attached and detached single-family units, duplexes, and accessory dwelling units.

Table 2-6 details development standards for the Medium Density Residential (MR) Zoning District.

The development standards for the Medium Density Residential land use designation in the Master Plan are optimized for attached housing types such as townhomes and duplexes, as well as traditional detached single-family units. These standards, including flexible setbacks, smaller lot sizes, and allowances for higher densities, promote compact housing that efficiently utilizes land while offering a range of housing options for diverse households. Although detached single-family homes are permitted, the regulations are also suited for smaller, attached units, reflecting a clear emphasis on medium-density development that supports housing variety.

Table 2-6 Medium Density Residential Development Standards (ZBMP) Uses
Permitted and Conditional Uses Refer to City of Patterson Zoning Regulations, Chapter 18.38 MR, Medium Density Residential District.

Density
Minimum 5.1 du/ac
Maximum 12.0 du/ac
Setbacks
Front yard
Living Area
15 ft second story
12 ft first story
5 ft court, townhome or similar products
Porch/Balcony 10 ft
5 ft for court, townhome, or similar product
Garage 20 ft
5 ft for court, townhome or similar product garages
Side – interior lot 4 ft (detached)
0 ft (duplexes and townhomes)
Side – street side/corner lot
10 ft
20 ft garages
May be reduced to 5 ft if side yard does not abut the front yard of an adjacent lot.

Rear Yard 10 ft
Rear Yard – setback to alley
ROW 3 ft
Distance Between Buildings 8 ft
Packet Pg. 1325
Section 2.0 Housing Constraints Assessment 2-14 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Other Design Regulations
Landscaping See Municipal Code Chapter 18.78
Lighting See Municipal Code Chapter 18.80
Fences, Walls, and Screening See Municipal Code Chapter 18.70 Parking See Municipal Code Chapter

19.76 For housing product types with no driveway available for guest parking, 1 guest parking space per 3 units.

Signs See Municipal Code Chapter 18.82
Projections and Encroachments See Municipal Code Sections 18.60.030 and 18.60.040.

Lot Configuration
Lot Area
Smaller lot sizes with different lot dimensions
may be approved by the Planning Commission
for other housing products.

Minimum 2,740 sq ft conventional
1,200 sq ft court
Corner Minimum 4,900 sq ft
Lot Dimensions (minimum)
Width/frontage – interior lot 37 ft conventional
29 ft court
Width/frontage – corner lot 55 ft conventional
Average width – cul-de-sac 40 ft conventional
Depth 70 ft conventional
45 ft court
Block Length 300 – 400 ft
Building Massing
Height (maximum)
Primary structure/unit 35 ft
Accessory Structure 25 ft
Lot Coverage (maximum impervious surface)
Maximum 80 percent
Maximum (front yard) 60 percent
Building Floor Area – primary
dwelling 1,000 sq ft minimum
Porch/Courtyard 30 percent of all dwelling units
6 ft x 10 ft minimum dimensions
Alternatives may be considered through the
design review process if a similar effect is
achieved.

SOURCE: Zacharias and Baldwin Ranch Master Plan, August 2022; City of Patterson Municipal Code Packet Pg. 1326
Section 2.0 Housing Constraints Assessment 2-15 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 High Density Residential
Permitted densities range from 12.1 to 25.0 dwelling units per acre, accommodating various housing types such as apartments, townhomes, flats, and condominiums, including both rental and ownership options. The development standards for the High Density Residential (HR) Zoning District are detailed in Table 2-7.

Table 2-7 High Density Residential Development Standards (ZBMP) Uses
Permitted and Conditional
Uses
Refer to City of Patterson Zoning Regulations, Chapter 18.38 HR, High Density Residential District.

Density
Minimum 12.1 du/ac May be eligible for a bonus as described in Municipal Code Chapter 18.88 Maximum 25.0 du/ac
Setbacks
Front yard
Living Area 10 ft
Porch/Balcony 5 ft
Side – interior lot 10 ft first story
5 ft per story thereafter
Side – street side/corner
lot 20 ft
Rear Yard 10 ft
Distance Between
Buildings 10 ft minimum living area; 5 ft garage
Other Design Regulations
Landscaping See Municipal Code Chapter 18.78
Lighting See Municipal Code Chapter 18.80
Fences, Walls, and
Screening See Municipal Code Chapter 18.70
Parking See Municipal Code Chapter 18.76
Signs See Municipal Code Chapter 18.82
Projections and
Encroachments See Municipal Code Sections 18.60.030 and 18.60.040.

Packet Pg. 1327
Section 2.0 Housing Constraints Assessment 2-16 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Lot Configuration
Lot Area - Minimum
Smaller lot sizes with different lot dimensions may be approved by the Planning Commission for other housing products.

General 10,000 sq ft
Townhome ownership
units 1,000 sq ft
Width/frontage – Minimum
General 70 ft
Townhome ownership
units 20 ft
Depth
General 100 ft
Townhome ownership
units 50 ft
Building Massing
Height (maximum) 55 ft (4 stories)
Lot Coverage (maximum impervious surface)
Maximum 80 percent
Maximum (front yard) 75 percent
Building Floor Area 800 sq ft minimum lower floor area
Porch/Courtyard 6 ft x 10 ft minimum dimension
SOURCE: Zacharias and Baldwin Ranch Master Plan, August 2022; City of Patterson Municipal Code The development standards for the High-Density Residential land use designation in the Master Plan support multifamily housing by encouraging compact lot configurations, modest setbacks, and vertical construction, with a 55-foot (four-story) height limit. However, the 12.1 to 25.0 dwelling units per acre density range, along with larger setbacks for corner lots and height limits, could constrain future affordable multifamily development. The City is collaborating with local developers to incentivize affordable projects in line with lower-income RHNA goals, as detailed in Program 1.6 (see Chapter 3). Overall, the standards balance high-density housing needs with site design flexibility, particularly for townhomes and multifamily units.

Mixed-Use District
The Mixed-Use District provides flexibility in design and focuses on creating a “town center” that blends commercial and residential uses. A key focus for the Mixed-Use District is to provide an opportunity for live/work options. Development of multi-family units would include amenities such as dedicated workspace on the ground floor. Table 2-8 details development standards for the MixedUse District.

Packet Pg. 1328
Section 2.0 Housing Constraints Assessment 2-17 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 2-8 Mixed-Use Development Standards (ZBMP)
Standard MU Additional Standards
Density (units per acre)
Minimum 12.0
Maximum 25.0 In addition to any commercial square
footage; may be eligible for density bonus.

Lot Coverage
Minimum floor area ratio 0
Maximum floor area ratio 3
Maximum impervious surface 100%
Setbacks
Front yard minimum No minimum
Front yard maximum 10 ft
Side yard minimum No minimum
Rear yard minimum No minimum
Setback from Single-Family – rear or side
yard 10 ft 6 ft landscape buffer required
Lot Area and Dimensions
Lot Area No minimum
Width No minimum
Depth No minimum
Height
Building/Structure 4 stories (65 ft)
Residential Uses
Ground Floor Maximum 75% residential See Guideline in Master Plan.

Residential Units May be located in upper levels
or in a separate building
Live/Work Units See regulations in Municipal Code Chapter 18.68.

Other Elements
Landscaping See regulations in Municipal Code Chapter 18.78.

Lighting See regulations in Municipal Code Chapter 18.80.

Fences, Walls, and Screening See regulations in Municipal Code Chapter 18.70.

Parking and Loading* See regulations in Municipal Code Chapter 18.76.

Signs See regulations in Municipal Code Chapter 18.82.

Projections and Encroachments See regulations in Municipal Code Chapter 18.60.

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Section 2.0 Housing Constraints Assessment 2-18 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 SOURCE: Zacharias and Baldwin Ranch Master Plan, August 2022; City of Patterson Municipal Code NOTE: * Parking in a mixed-use development may be reduced up to 30 percent with administrative review by planning director. Factors to consider in approving a parking reduction include the following. All these elements must be present to approve an administrative reduction. 1) On-street parking spaces may be counted toward off-street parking requirements if conveniently accessible. 2) The project includes a mixed-use development with residential and retail and/or office uses, including evidence that there are uses with differing operating hours.
3) Provision of pedestrian plazas, seating areas, shelters, and walkways. 4) Provision of car-share and clean air vehicle spaces.

The development standards for the Mixed-Use (MU) land use designation in the Master Plan appear flexible, but certain standards may be limiting. The density range of 12.0 to 25.0 units per acre offers moderate flexibility, but the potential cap at 25.0 units could limit higher-density development, which may be desired in urbanized areas. The height limit of four stories (65 feet) may also constrain developers seeking to maximize vertical space in denser, mixed-use areas. Overall, while the standards provide flexibility, restrictions related to density and height could limit the scale of development.

Objective Design Standards
According to California Government Code, Section 65913.4, Objective Design Standards (ODS) are defined as, “a design standard that involves no person or subjective judgement by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal.” Generally, Objective Design Standards provide clear and measurable design requirements, providing predictability and consistency for project applicants and developers. This is especially important for the development of affordable multi-family projects, which are often associated with excessive development standards and design review, hindering development.

The City currently lacks Objective Design Standards. Instead, the City relies on a set of Community Design Guidelines, adopted in 2002, which aim to inform project applicants and developers of the City's expectations and preferences for the quality and character of new developments. These guidelines are used to preserve the City's unique physical character. While the Community Design Guidelines do not appear to act as a constraint to multi-family residential development, design review is only required for new residential subdivisions, multi-family residential, commercial, and industrial projects. This has the potential to create barriers to the development of affordable housing types commonly associated with these projects, such as single-room occupancy units, second story commercial rental units, and multi-family residential units.

The absence of Objective Design Standards poses a constraint to residential development.

Subjective guidelines and unclear zoning standards increase uncertainty and risk for housing developers. Objective Design Standards offer clarity for developers and assurance for the community that developments will meet measurable criteria. As previously discussed, the City proposes to establish Objective Design Standards for mixed-use and multi-family residential projects. Program 1.8 establishes an amendment to the Municipal Code to develop Objective Design Standards by Summer 2026.

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Section 2.0 Housing Constraints Assessment 2-19 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Conditional Use Permits
The purpose of a conditional use permit is to ensure that certain uses, which may cause nuisances due to their nature, are appropriately integrated into specific locations or zoning districts. These uses often involve issues like noise, dust, odors, vibrations, or traffic congestion, requiring control or specific design to minimize impact. Conditional use permits (CUPs) require a public hearing and are subject to a decision of the Planning Commission. The following findings are required in order to grant a conditional use permit:

1. The requested conditional use permit is consistent with the city general plan and this title; and

2. The establishment, maintenance, or operation of the proposed use or structure will conform to the requirements and the intent of this title; and such proposed use or structure will not, under the circumstances of the particular case or as conditioned, be injurious or detrimental to the health, safety, or general welfare of persons or property in the vicinity of the proposed use, or to the general welfare of the city.

The required findings of approval do not present significant constraints to the development of affordable housing types, such as multi-family dwellings.

Variety of Housing Opportunity
Government Code Section 65583 and 65583.2 require the housing element to provide for a variety of housing types including multi-family rental housing, factory-built housing, mobile homes/manufactured housing, housing for agricultural employees, supportive housing, single-room occupancy units, emergency shelters, and transitional housing. Table 2-9 identifies permitted housing types in Patterson’s zoning districts.

Single-Family Uses
Single-family housing types includes residences designed for a single family where all rooms within the dwelling are interconnected, including duplexes and single-family attached dwellings (townhouses). Single-family housing units are permitted in the city’s Estate Residential, Low Density Residential, and Downtown Residential Zoning Districts, and conditionally permitted in the Medium Density and Downtown Residential Zoning Districts.

Multi-Family Uses
Multi-family housing types include residences designed for three or more families living independently of each other, including triplexes, apartments, condominiums, and rooming and boarding houses. Multi-family housing developments are permitted in the Medium Density and High Density Residential Zoning Districts, and conditionally permitted in the Downtown Residential, Neighborhood Commercial, and Downtown Core Zoning Districts.

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Section 2.0 Housing Constraints Assessment 2-20 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 2-9 Housing Types Permitted in Patterson’s Zoning Districts Type of Residential Use
Zoning District
Residential Districts Commercial/Industrial Districts

ER LR DR MR HR NC HSC DC GC MPO HI LI
Single-Family Unit P P P CUP CUP
Single-Family Units, attached1 N CUP CUP P CUP
Duplexes1 AR AR AR AR AR CUP N CUP N N
Accessory Dwelling Unit P P P N N
Multi-Family N N CUP P P CUP N CUP N N
Mobile Home Park N N N CUP CUP
Mobile Homes (accessory) P N N N N
Manufactured Housing2 P P P P P
Family Day Care Home Small
(< six children) P P P P P
Family Day Care Home Large
(seven to 14 children) CUP CUP CUP CUP CUP
Group Care/ Facility Small3
(< six persons) P P P CUP CUP CUP N N CUP CUP
Group Care Facility Large3
(> seven persons) N N N N CUP N N N N CUP
Residential Care Facility Small
(< six persons) P P P CUP CUP CUP N N CUP CUP
Residential Care Facility Large
(> seven persons) CUP CUP CUP CUP CUP CUP N CUP CUP CUP Transitional/Supportive Housing CUP CUP CUP CUP CUP
Emergency Shelter CUP CUP CUP CUP CUP P
Live/Work Units4 CUP N CUP N N CUP CUP CUP N N
SOURCE: City of Patterson, 2024
NOTES: P = Permitted C= Condition Use N= not permitted AR =administrative review Estate Residential (ER); Low Density Residential (LR); Downtown Residential (DR); Medium Density Residential (MR); High Density Residential (HR); Neighborhood Commercial (NC); Highway Service Commercial (HSC); Downtown Core (DC); General Commercial (GC); Medical/Professional Office (MPO); Heavy Industrial (HI); Light Industrial (LI)
1 Duplexes and halfplexes may be permitted with administrative use review (AR) on corner lots larger than 7,000 square feet. 2 Manufactured housing on permanent foundations, subject to provisions. 3 Facility shall be state licensed.
4 See land use classifications in Chapter 18.96 for definition of live/work quarters.

Accessory Dwelling Units
An "accessory dwelling unit” (ADU) is a secondary dwelling unit with complete independent living facilities for one or more persons and generally takes three forms, including 1) detached unit, where the unit is separated from the primary residential structure; 2) attached unit, where the unit is Packet Pg. 1332
Section 2.0 Housing Constraints Assessment 2-21 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 attached to the primary residential structure; and 3) repurposed existing space, where the space (e.g., master bedroom or garage) within the primary residence is converted into an independent living unit. ADUs units may be an alternative source of affordable housing for lower income households and seniors. These units typically rent for less than apartments of comparable size.

California law requires local jurisdictions to adopt ordinances that establish the conditions under which ADUs are permitted (Government Code Section 65852.2). A jurisdiction cannot adopt an ordinance that totally precludes the development of ADUs unless the ordinance contains findings acknowledging that allowing ADUs may limit housing opportunities of the region and result in adverse impacts on public health, safety, and welfare. The State legislature has adopted numerous amendments to Government Code Sections 65852.2 and 65852.22 in order to promote ADUs and remove barriers to their development. Requirements include that ADUs be reviewed and approved ministerially within a specified timeline, that ADUs be permitted on single-family and multi-family lots, and limitations on the development standards that local jurisdictions can impose for ADUs.

The City of Patterson last updated its ADU provisions (Municipal Code Section 18.66) in 2013. The Patterson Zoning Ordinance defines ADUs as a second unit meaning, “an attached or detached additional residential dwelling unit which provides complete independent living facilities for one or more persons. A second unit shall include permanent provisions for living, sleeping, eating, cooking, and sanitation, on the same parcel as the single-family dwelling is situated, on a lot or parcel zoned for single-family dwelling use.” Currently, ADUs are permitted in zoning districts that permit singlefamily uses (Estate Residential, Low Density Residential, and Downtown Residential Zoning Districts).

To comply with changes in State law, the City is required to update its ADU provisions. This Housing Element includes Program 4.12 to amend the City’s ADU Ordinance to comply with State law (see Chapter 3).

Manufactured Housing
Government Code Section 65852.3 requires jurisdictions to permit manufactured or mobile homes meeting federal safety and construction standards on a permanent foundation in all single-family residential zoning districts. The City of Patterson Zoning Ordinance defines manufactured housing as “a single-family detached dwelling unit constructed in accordance with the National Manufactured Housing Construction and Safety Standards Act of 1974, as amended. This definition is intended to include mobile homes and modular homes which meet federal standards for manufactured homes.” There are no constraints on the location of factory-built housing since they are permitted in all residential zones. Mobile home parks are conditionally permitted in the Medium Density and High Density Residential Zoning Districts.

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Section 2.0 Housing Constraints Assessment 2-22 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Group Homes and Residential Care Facilities
The City of Patterson permits group care facilities, defined as follows: Large group care facilities are state-licensed, providing nonmedical care and supervision for more than six adults for less than 24 hours, with no overnight stays. Small group care facilities provide nonmedical care for up to six adults, including seniors, in the provider's home, also for less than 24 hours. Large group care facilities are conditionally permitted in the High Density Residential and Medical/Professional Office Zoning Districts. Small group care facilities are permitted in Estate Residential, Low Density Residential, and Downtown Residential Zoning Districts and are conditionally permitted in Medium and High Density Residential, Neighborhood Commercial, General Commercial, and Medical/Professional Office Zoning Districts. Unlike residential care facilities, the City’s allowed use of group care facilities does not provide 24-hour care.

The Lanterman Developmental Disabilities Services Act (Sections 5115 and 5116) of the California Welfare and Institutions Code declares that mentally and physically disabled persons are entitled to live in normal residential surroundings. The use of property for the care of six or fewer mentally disordered or otherwise handicapped persons is allowed by law. A State-authorized, certified or authorized family care home, foster home, or group home serving six or fewer persons with disabilities or dependent and neglected children on a 24-hour-a-day basis is considered a residential use to be permitted in all residential zones. No local agency can impose stricter zoning or building and safety standards on these homes (commonly referred to as “group” homes) of six or fewer persons with disabilities than are required of the other permitted residential uses in the zone.

According to Health and Safety Code sections 1267.8, 1566.3, and 1568.08, State-licensed residential care facilities for six or fewer residents, including foster care, must be permitted by right in all residential zones allowing single-family housing. Such facilities cannot be subject to more stringent development standards, fees or other standards than single-family homes in the same district.

The City of Patterson permits residential care facilities in accordance with state law. However, the Municipal Code requires updating to clarify the permitting process based on licensure and facility size. Further a definition for residential care facilities is required to distinguish these facilities from group care facilities, which the city permits as a use for less than 24-hours per day. Program 4.3 proposes an amendment to the Municipal Code to define residential care facilities and to specify the permitting process for licensed and unlicensed residential care facilities for six or fewer persons and those for seven or more persons. Program 4.3 outlines the permitting procedures for residential care facilities as follows:
▪ Residential Care Facilities Without Licensable Services: Residential care facilities that function as single-family residences and do not offer licensable services shall be permitted in zones that permit residential uses. These homes shall only be subject to the general health, safety, and zoning laws applicable to all single-family residences, regardless of having more than six residents. Since these homes do not provide licensable services, they should be treated like any other single-family residence;
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Section 2.0 Housing Constraints Assessment 2-23 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 ▪ Residential Care Facilities with Licensable Services for Six or Fewer Residents: Residential care facilities operating as single-family residences and providing licensable services to six or fewer residents shall be permitted in zones that permit residential uses. They shall only be subject to the general health, safety, and zoning laws applicable to all single-family residences, in compliance with the Health and Safety Code protections for these smaller, licensed group homes; and
▪ Residential Care Facilities with Licensable Services for More Than Six Residents: Residential care facilities that provide licensable services to more than six residents shall be permitted in all zones that permit residential uses. They shall be subject only to provisions for residential uses of the same type in the same zone.

Reasonable accommodations in these permitting processes shall be considered when an application for reasonable accommodation is submitted.

Emergency Shelters
An emergency shelter is a facility that provides housing with minimal supportive services for people experiencing homelessness and is limited to an occupancy of six months. Government Code Section 65583.(a)(4) requires jurisdictions to identify a zone or zones where emergency shelters are allowed as a permitted use without a conditional use or other discretionary permit. Adopted in 2007, Senate Bill (SB) 2 requires that local jurisdictions make provisions in the Zoning Ordinance to permit emergency shelters by right in at least one zoning district where adequate capacity is available to accommodate at least one year-round shelter. Local jurisdictions may, however, establish standards to regulate the development of emergency shelters. Assembly Bill (AB) 2339, passed in 2022, expands the definition of emergency shelters to include interim housing options such as low barrier navigation centers and bridge housing, and respite and recuperative housing. AB 2339 also requires that the zone(s) permitting emergency shelters by right, without discretionary review, be zones that also are suitable for residential uses. As previously mentioned, AB 139 requires local jurisdictions to amend zoning provisions for emergency shelters, establishing parking requirements based on staffing level only, provided that the standards do not require more parking for emergency standards than other residential or commercial uses within the same zone.

Currently, the City of Patterson’s Zoning Ordinance permits emergency shelters in all residential zones with a Conditional Use Permit. However, the City has an Emergency Shelter Overlay Zone, which is detailed in Chapter 18.58 of the City’s Zoning Ordinance, last updated in 2015. Section

18.58.020 of the Zoning Ordinance defines emergency shelters as “housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. The Emergency Shelter Overlay Zone applies to the City’s Heavy Industrial (HI) Zoning District, which does not permit residential uses.

To comply with recent changes to State law, the City is required to amend its Zoning Ordinance to revise the definition of emergency shelters, and to permit emergency shelters in zones that are Packet Pg. 1335
Section 2.0 Housing Constraints Assessment 2-24 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 suitable for and permit residential uses. The Housing Element includes Program 4.6 proposing an amendment to the Municipal Code to remove reference to the Emergency Shelter Overlay Zone and permit emergency shelters by-right in the Downtown Core (DC) Zoning District (see Chapter 3).

Although the construction of new emergency shelters is unlikely due to cost considerations, jurisdictions are required to analyze the development standards for zones where emergency shelters are permitted and could be constructed. In Patterson’s Downtown Core (DC) Zoning District, development standards include a minimum density of 12.1 and a maximum of 20.0 dwelling units per acre, a floor area ratio between 0.5 and 2.0, and a maximum impervious surface of 100 percent.

Setbacks include a front yard maximum of 10 feet (with no minimum), no side or rear yard setbacks, and a minimum lot area of 2,000 square feet. There are no minimum lot dimension requirements, and building height is capped at three stories or 45 feet. The development standards for the Downtown Core (DC) Zoning District are relatively flexible and generally do not pose significant constraints to development of emergency shelters.

SB 2 allows flexibility for local jurisdictions to apply written, objective development and management standards for emergency shelters. These standards must be designed to encourage and facilitate the development of, or conversion to, an emergency shelter. In accordance with SB 2, jurisdictions may apply the following objective development standards:
▪ The maximum number of beds or persons permitted to be served nightly by the facility; ▪ Off-street parking based upon demonstrated need, provided that the standards do not require more parking for emergency shelters than for other residential or commercial uses within the same zone;
▪ The size and location of exterior and interior on-site waiting and client intake areas; ▪ The provision of on-site management;
▪ The proximity to other emergency shelters provided that emergency shelters are not required to be more than 300 feet apart;
▪ The length of stay;
▪ Lighting; and
▪ Security during hours that the emergency shelter is in operation.

Section 18.58.100 of Patterson’s Zoning Code identifies development and operational standards, as well as a management plan for emergency shelters, which are detailed below.

Location and Separation
▪ Emergency homeless shelter facilities shall be located in an emergency shelter overlay zone; and ▪ All shelter programs must be situated no less than three hundred feet from any other similar shelter program.

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Section 2.0 Housing Constraints Assessment 2-25 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Physical Characteristics
▪ The maximum number of beds for emergency and transitional housing shall be twenty-five; ▪ Smoke detectors, approved by the Patterson fire chief, must be provided in all sleeping and food preparation areas;
▪ The facility shall have adequate private living space, shower and toilet facilities and secure storage areas for its intended residents;
▪ The size of an emergency facility shall be in character with the surrounding neighborhood; and ▪ The facility shall have at least one room, which has one hundred twenty square feet of floor area.

Other habitable rooms shall have an area not less than seventy square feet. When more than two persons occupy a room used for sleeping purposes, the required floor area shall be increased at the rate of fifty square feet for each occupant in excess of two.

Operational Standards
▪ If located within one hundred fifty feet of a residential zoning district, all outdoor activity and intake areas shall be screened from public view and from the view of adjacent properties; ▪ If the program includes a drug or alcohol abuse counseling component, appropriate state and/or federal licensing shall be required;
▪ Adequate lighting shall be provided in all parking, pedestrian paths, and entry areas. Lights shall be shielded and reflected away from adjacent uses;
▪ Off-street parking shall be provided at a rate of one vehicle parking space per employee/volunteer plus one vehicle parking space for every ten beds; ▪ Adequate management, support staff and security must be present during the hours of operation of the facility. A minimum of one supervisory level staff member must be present on the site during hours of operation. Management staff must make best efforts to ensure that loitering does not occur on the property during off-hours and must ensure that clients are not creating a nuisance to the neighborhood; and
▪ A security guard/officer must be provided during the intake period. The shelter shall have set hours of operation and the hours shall be posted in a publicly visible and accessible location.

Management Plan
The shelter shall prepare and file with the city a management plan that includes but is not limited to:
▪ A resident identification process;
▪ Timing and placement of outdoor activities;
▪ Standards governing expulsions;
▪ Hours of operation and standard lights-out;
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Section 2.0 Housing Constraints Assessment 2-26 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 ▪ Loitering control; and
▪ Policies regarding safety and security.

A review of the City's development standards for emergency shelters reveals three potential constraints: shelter size, parking requirements, and location. The requirement for shelter size to match the character of the surrounding neighborhood is subjective and lacks clear guidance for developers, potentially hindering shelter development depending on the zoning district. Additionally, current parking requirements are not aligned with recent State law (AB 139). Lastly, the location of emergency shelters are currently required to be located in an Emergency Shelter Overlay Zone which may increase complexity in approval. To remove these constraints, Program 4.6 proposes amendments to the Zoning Code to eliminate subjectivity from the development standards and remove reference to an emergency shelter overlay zone, instead permitting emergency shelters byright in the Downtown Core Zoning District. (see Chapter 3).

According to the 2024 Stanislaus County Point-in-Time Count, there were 61 homeless individuals in Patterson. The Downtown Core (DC) Zoning District was chosen to permit emergency shelters due to its close proximity to public transportation, amenities, public facilities, and supportive services. Eight parcels totaling approximately 20 acres are vacant and/or underutilized and would be appropriate for small to medium sized shelter facilities and adequate to accommodate the City’s unsheltered homeless residents. Furthermore, new shelters are often installed through adaptive reuse of existing buildings rather than through new construction due to costs and funding limitations.

For example, Site 9, located within the City's DC Zoning District and included in the Sites Inventory, is a vacant parcel consisting of 9.01 acres and presents potential for reuse as an emergency shelter site. Given the site’s size and the City’s identified homeless population of 61 individuals, only a small portion of the parcel would be needed to accommodate an emergency shelter, allowing for efficient use of land while addressing local housing and shelter needs. AB 2339 provides a general guidance or estimate of 200 square feet per person as an adequate amount of space, to calculate the realistic capacity for construction of an emergency shelter.5 A site area of 16,000 square feet (0.37 acres) would be sufficient to accommodate up to 80 people, and therefore accommodate the City’s homeless population of 61 people, including a buffer.

Additionally, there are several smaller vacant parcels and underutilized sites—such as parking lots— within the Downtown Core (DC) Zoning District that offer potential for emergency shelter development on a smaller scale. For example, two adjacent parcels (APNs 131-015-017 and 131- 015-018), totaling 0.25 acres and currently used for Ace Hardware employee parking and storage, present an opportunity to develop an emergency shelter with the capacity to serve approximately 54 individuals. These sites demonstrate the flexibility within the DC District to accommodate a range of shelter options tailored to the scale of local need. 5 Government Code 65583(3)(I).

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Section 2.0 Housing Constraints Assessment 2-27 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Given that the city has property suitably zoned and available for an emergency shelter that exceeds the necessary capacity, and is in the process of establishing Municipal Code regulations to authorize emergency shelters in accordance with State law, the City is in compliance with State law.

Low Barrier Navigation Centers
AB 101, passed in 2019, requires cities to allow a low barrier navigation center (LBNC) development by-right in areas zoned for mixed-uses and nonresidential zones permitting multi-family uses if it meets specified requirements. A low barrier navigation center” is defined as “a housing First, lowbarrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public benefits, health services, shelter, and housing.” Low barrier navigation centers may include options such as allowing pets, permitting partners to share living space, and providing storage for residents’ possessions.

In accordance with state law, the City permits low barrier navigation centers. However, the Municipal Code requires an update to reflect recent changes in state law related to low-barrier navigation centers. Program 4.7 proposes an amendment to the Municipal Code to establish a definition and outline the permitting procedures for low barrier navigation centers.

Transitional and Supportive Housing
Government Code Section 65583(a)(5) requires local jurisdictions to permit transitional and supportive housing as a residential use only subject to those restrictions that apply to other residential dwellings of the same type in the same zone.

Under Housing Element law, transitional housing means buildings configured as rental housing developments, but operated under program requirements that require the termination of assistance and recirculating of the assisted unit to another eligible program recipient at a predetermined future point in time that shall be no less than six months from the beginning of the assistance (California Government Code Section 65582(h)). Supportive housing means housing with no limit on length of stay, that is occupied by the target population, and that is linked to an onsite or offsite service that assists the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. Target population means persons with low-incomes who have one or more disabilities, including mental illness, HIV or AIDS, substance abuse, or other chronic health condition, or individuals eligible for services provided pursuant to the Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with Section 4500) of the Welfare and Institutions Code) and may include, among other populations, adults, emancipated minors, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional settings, veterans, and homeless people (California Government Code Sections 65582(f) and (g)).

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Section 2.0 Housing Constraints Assessment 2-28 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Furthermore, recent changes to State law require supportive housing to be permitted by right where multi-family and mixed-uses are permitted, including non-residential zones permitting multi-family uses (Government Code section 65651). AB 2162 prohibits the imposition of parking requirements for supportive housing developments within 0.5 mile of a public transit stop.

In accordance with state law, the City permits transitional and supportive housing. However, the Municipal Code requires an update to reflect recent changes in state law. Program 4.9 proposes an amendment to the Municipal Code to permit transitional and supportive housing in all zones that allow residential uses, subject only to the restrictions that apply to other residential dwellings of the same type in the same manner (see Chapter 3). Furthermore, in accordance with AB 2162, the Zoning Ordinance will be amended to permit supportive housing by right in zones where multifamily and mixed-uses are permitted, including nonresidential zones that allow multi-family uses.

Amendments to parking requirements for supportive housing will also be implemented in accordance with AB 2162.

Single-Room Occupancy
A single-room occupancy (SRO) unit usually is small, between 200 to 350 square feet. These units provide a valuable source of affordable housing for individuals and can serve as an entry point into the housing market for people who previously experienced homelessness. Assembly Bill (AB) 2634 (Lieber, 2006) requires the quantification and analysis of existing and projected housing needs of extremely low-income households. Housing Elements must also identify zoning to encourage and facilitate supportive housing and single-room occupancy units.

The Patterson Municipal Code currently does not define single-room occupancy (SRO) units. To align with Government Code Section 65583(c)(1), promote fair housing, and increase the availability of units for lower-income households, Program 4.10 proposes amending the Municipal Code to define single-room occupancy units and permit them by-right in all zoning districts that allow mixed-use developments (see Chapter 3).

Employee and Farmworker Housing
The California Employee Housing Act requires that housing for six or fewer employees be treated as a regular residential use. The Employee Housing Act further defines housing for agricultural workers consisting of 36 beds or 12 units be treated as an agricultural use and permitted where agricultural uses are permitted. The City’s Zoning Ordinance does not distinguish employee or farmworker housing from any other type of single- or multi-family housing. As a result, if additional employee and/or farmworker units are needed there is ample vacant land in the R-1, R-2, and R-3 zones to accommodate these needs. Processing requirements and times are the same as those for other singleand multi-family housing and there are no additional permitting requirements specific to employee or farmworker housing. The City will continue to support and grant planning and development entitlements to housing projects, including employee and farmworker housing projects, which Packet Pg. 1340
Section 2.0 Housing Constraints Assessment 2-29 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 comply with applicable City ordinances and state and federal laws. Program 4.11 proposes an amendment to the Municipal Code to explicitly state employee and farmworker housing as a permitted use in accordance with state law (see Chapter 3).

Density Bonus Ordinance
California Government Code Section 65915-65918 requires local governments to grant a density bonus to projects providing a specified percentage of affordable units, senior housing, or childcare facilities. Jurisdictions also may not enforce any development standard that would preclude the construction of a project with the density bonus and the incentives or concessions to which the developer is entitled. To ensure compliance with the State density bonus law, jurisdictions must reevaluate their development standards in relation to the maximum achievable densities for multiplefamily housing.

In accordance with Chapter 4.3 Section 65915 et. seq. of the California Government Code, the City of Patterson adopted a Density Bonus Ordinance (City of Patterson Zoning Ordinance Section

18.88.010) and last updated it in 2013. Since then, the State has passed additional Density Bonus laws:
▪ AB 1763 (2019) – Density bonus and increased incentives for 100 percent affordable housing projects for lower income households;
▪ AB 2345 (2020): (Increase Maximum Allowable Density) – Revised the requirements for receiving concessions and incentives, and the maximum density bonus provided; and ▪ AB 1227 (2022) – Density bonus for student housing development for students enrolled at a full- time college, and to establish prioritization for students experiencing homelessness.

Program 1.4 proposes actions to update the density bonus ordinance to comply with these new provisions (see Chapter 3).

Building Codes and Code Enforcement
Building Codes
The California Building Code (CBC), part of Title 24 of the California Code of Regulations, is updated on a three-year cycle as part of the Triennial Code Adoption Cycle. This ensures the code stays current with national standards and addresses California’s specific needs, including safety, sustainability, and environmental considerations. The most recent update, the 2022 CBC, became effective on January 1, 2023, following the 2021 Triennial Code Adoption Cycle. These updates apply to all buildings and structures with permit application dates on or after this effective date. In addition to the triennial updates, emergency or mid-cycle supplements may be issued to address urgent needs. The next full update will occur in 2025, with new regulations becoming effective on January 1, 2026. 6
6 https://www.hcd.ca.gov/building-standards/building-code-development-and-adoption-title-24 Packet Pg. 1341
Section 2.0 Housing Constraints Assessment 2-30 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Building and safety codes are adopted to preserve public health and safety and ensure the construction of safe and decent housing. These codes and standards also have the potential to increase the cost of housing construction or maintenance.

The City of Patterson has implemented several local amendments to the 2022 California Building Code to address local conditions and enhance public safety. One key modification is to Section 105.5 of the CBC, which extends the expiration of building permits to 180 days. If construction is not commenced or is suspended for this period, the permit becomes null and void, requiring reapplication at half the original fee, provided no changes have been made to the project plans. This ensures that projects maintain momentum while allowing flexibility for delays.

For flood-prone areas, Section 107.2.5.1 of the CBC has been amended to require that design flood elevations comply with the standards outlined in Title 17 of the Patterson Municipal Code. This local requirement strengthens Patterson’s flood mitigation strategies and ensures alignment with municipal regulations.

In terms of temporary occupancy, Section 111.3 of the CBC now mandates that temporary occupancy permits can only be granted with the approval of the building official. Occupants, owners, and contractors must agree to correct any outstanding issues within 45 days, or the City has the authority to disconnect utilities until compliance is achieved.

Additionally, given the presence of expansive soils in the Patterson area, the City has amended Section 1808.6 of the CBC to impose stricter foundation design requirements. Foundations for buildings and structures must be engineered to either conform to Section 1808.6.1 (which outlines prescriptive measures for standard foundations) or 1808.6.2 (which allows for alternative designs based on a detailed soil analysis). This amendment ensures that buildings are constructed to withstand soil expansion and contraction, reducing the risk of structural damage.

Furthermore, the City has enhanced its stormwater management standards by amending Section 1803.7 to require drainage plans for all commercial, industrial, and multi-family residential developments. These plans must be approved by the Department of Public Works and include connections to publicly maintained storm drainage systems or ponding basins, as necessary. This amendment ensures that stormwater runoff is effectively managed, reducing the risk of flooding and environmental degradation.

The City Council has also been designated as the Board of Appeals under Section 113 of the CBC, offering a formal process for property owners and developers to contest decisions made by the building official. This appeals process provides a transparent, structured means of addressing disputes over code enforcement and interpretation.

These targeted amendments to the CBC reflect the City of Patterson’s commitment to addressing local environmental challenges, such as seismic activity, expansive soils, and flood risks, while Packet Pg. 1342
Section 2.0 Housing Constraints Assessment 2-31 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 promoting safe, sustainable development practices. Through these revisions, the City ensures that its building codes remain robust, relevant, and protective of public welfare. These local amendments to the CBC are not considered a constrain to development.

Code Enforcement
As previously discussed in Section 1.4, Housing Inventory and Market Characteristics, the enforcement of City building codes is managed by the building inspector, chief building official, and the city manager. The City prioritizes education in its code enforcement approach, and provides sufficient notice before issuing fines or scheduling hearings if necessary.

The City's Code Enforcement Division is not part of the Community Development Department, which can limit communication and coordination on housing-related code enforcement cases.

Additionally, the City uses an antiquated permitting system, making it difficult to organize records and produce the Annual Progress Report (APR). To address these issues, the City proposes Program

1.13 which will implement new permitting software, such as iWorq or Accela, to streamline permit tracking and make permits publicly accessible on the Building Department webpage (see Chapter 3).

The program also commits the City’s Housing and Code Enforcement departments to attend regular meetings to share resources and support housing efforts. This initiative aims to improve internal communication and coordination to more effectively address housing needs in Patterson.

Housing for Persons with Disabilities
Land Use Controls
The City of Patterson permits residential care facilities in accordance with state law. However, the Municipal Code needs updating to clarify the permitting process based on licensure and facility size.

A definition for residential care facilities is also needed to differentiate them from group care facilities, which operate for less than 24 hours per day. Program 4.3 proposes amending the Municipal Code to define residential care facilities and specify the permitting process for both licensed and unlicensed facilities, for six or fewer residents, and for seven or more residents.

Reasonable Accommodation
Building and development standards may constrain the ability of persons with disabilities to live in housing units that are suited to their needs. Applying the principle of reasonable accommodation, the City understands its affirmative duty to be flexible in the application of land use and zoning regulations, rules, and procedures for equal access to housing for people with disabilities. In 2015, the City amended its Zoning Ordinance to provide a procedure to request reasonable accommodation for persons with disabilities seeking equal access to housing under the Fair Housing Laws in the application of zoning laws, building codes, and other land use regulations, policies and procedures (Chapter 18.89).

A request for reasonable accommodation may be made by any person with a disability or their representative, when the application of a requirement of this zoning code or other city requirement, Packet Pg. 1343
Section 2.0 Housing Constraints Assessment 2-32 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 policy, or practice acts as a barrier to fair housing opportunities. Requests for reasonable accommodation are reviewed by the Director of Community Development Department or his/her designee, if no approval is sought other than the request for reasonable accommodation. A request for reasonable accommodation submitted for concurrent review with another discretionary land use application is reviewed by the Planning Commission. The review authority shall approve the request for a reasonable accommodation if, based upon all of the evidence presented, the following findings can be made:

A. Whether the housing in the request will be used by a person with a disability under the Acts; B. Whether the request for reasonable accommodation is necessary to make specific housing available to a person with a disability under the Acts; C. Whether the requested reasonable accommodation would impose an undue financial, administrative or enforcement burden on the city;
D. Whether the requested reasonable accommodation would require a fundamental alteration in the nature of a city program or law, including but not limited to land use and zoning; E. Potential impact on surrounding uses;
F. Physical attributes of the property and structures; and G. Other reasonable accommodations that may provide an equivalent level of benefit. (Ord. 783 (part), 2015).

Any person dissatisfied with any action of the Director of Community Development Department pertaining to a request for reasonable accommodation may appeal to the Planning Commission. Any person dissatisfied with any action of the Planning Commission pertaining to a request for reasonable accommodate may appeal to the City Council. The Municipal Code does not restrict who can appeal a request for reasonable accommodation, which could hinder approval if individuals unrelated to the request oppose it. To address potential obstacles in the approval and appeals process for requests for reasonable accommodation, the City has included Program 4.1 (see Chapter 3). This program proposes an amendment to Chapter 18.89, to limit the parties eligible to appeal a request for reasonable accommodation to the applicant or the personal beneficiary.

Definition of Family
Section 18.98.020 of the Patterson Municipal Code defines “family” as an individual or two or more persons living together in a dwelling unit as a single housekeeping unit. This definition of “family” is not overly restrictive to the occupancy of a housing unit.

Building Code
The City of Patterson has adopted the 2022 California Building Code and routinely adopts updates as they become available. The City has not adopted any local amendments to this code that would impede housing for persons with disabilities.

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Section 2.0 Housing Constraints Assessment 2-33 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Planning and Development Fees
Housing construction imposes certain short- and long-term costs upon local government, such as the cost of providing planning services and inspections. As a result, the City of Patterson relies upon various planning and development fees to recoup costs and ensure that essential services and infrastructure are available when needed.

Planning Fees
State law requires that these fees be true cost recovery fees and do not exceed the cost to the City to review and process the permit. The City’s fee schedule was last updated in August 2019. As part of fee schedule updates, the City reviews the staff time and other resources necessary to process permits to ensure that fees are set at an appropriate level in compliance with state requirements.

Table 2-10 presents the planning and building fees for the City of Patterson. Standard building plan check and permit fees apply to all construction projects. These fees do not significantly add to the cost of market-rate or affordable housing being constructed in the city.

Table 2-10 Planning Entitlement and Building Fees, City of Patterson Planning Entitlements
Service Fee
Tentative Parcel Map $1,7251
Tentative Subdivision Map $3,058.00
Tentative Subdivision Map Revision $1,644.00
Final Map $1,170.00
Similar Use Determination $165.00
Rezone $3,000.00
Relocation Permit $875.00
Annexation $6,000.00
Planned Development $3,515.00
Planned Development/Rezone $4,280.00
Minor Adjustment $135.00
Master Plan $3,190.00
Lot Line Adjustment $800.00 1
General Plan Amendment $4,275.00
General Plan Amendment with Rezone $4,900.00
Zoning Ordinance Text Amendment $3,900.00
Variance Residential - $975.00
Non-residential - $1,760.00
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Section 2.0 Housing Constraints Assessment 2-34 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Planning Entitlements
Service Fee
Time Extension Staff - $210.00
Council 2- $580.00
Negative Declaration/Mitigated Negative Declaration $2,916.75 Environmental Impact Report $4,051.25
Environmental Document Pursuant to Certified Regulatory Program $1,377.25 County Clerk Processing Fee $57.00
Conditional Use Permit $1,340.00
Conditional Use Permit Revision $890.00
Administrative Use Review $300.00
Architectural and Site Plan Review $2,265.00
Appeal $605.00
Home Occupation Use Permit $185.00
Temporary Use Permit $225.00
Temporary Sign Permit $55.00
Sign Permit
Single - $100.00
Multiple - $240.00
Master Plan - $595.00
Building Fees
Service Fee
Building Permit Gross Area x Square Foot Construction Cost x

0.0075 (permit fee multiplier)
Plan Check 65% of calculated building permit fee 3
SOURCE: City of Patterson, 2024
NOTES: 1 Additional fees, including engineering, final map, and environmental may be required during processing of application. 2 Requiring a public hearing.
3 Plan check fee is 65% of the calculated building permit fee (excluding fire sprinkler permits). Expedited Plan Check Fee is double the calculated plan check fee based on 65% of the building permit fee.

Development Impact Fees
Until 1978, property taxes were the primary revenue source for financing infrastructure and improvements to support new residential development. However, Proposition 13, passed in 1978, limited the ability of local jurisdictions to raise property taxes and significantly reduced the ad valorem tax rate. This change increased reliance on alternative funding sources, such as development impact fees, which are used to fund improvements like water and sewer facilities, parks, and transportation. To enact an impact fee, state law requires that a local jurisdiction demonstrate a “nexus” between the development and the impact being mitigated by the fee, and the fee must be proportional to the development's impact. Despite their necessity, development impact fees have become a significant cost factor in housing development.

Packet Pg. 1346
Section 2.0 Housing Constraints Assessment 2-35 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 The City’s development impact fees were last updated in 2006, and intentionally maintained at those levels to support development during and following the Great Recession. To address inflation and evolving needs, the City conducted a comprehensive development impact fee nexus study in Fall 2024, culminating in the adoption of updated fees in October 2024 per Resolution 2024-59.

Table 2-11 outlines the 2021 development impact fees required by the City and local agencies for residential projects, which are assessed on a per-unit basis depending on whether the project is single-family or multi-family. Table 2-12 shows the total fee estimates for both single-family and multi-family dwelling units on a per unit basis. Building valuation is based on the highest estimated residential construction cost published in the ICC Building Valuation Data (August 2024), ensuring a conservative estimate for valuation and total development fee calculations.

Table 2-11 Residential Development Impact Fees, City of Patterson Impact Fees
Fee Amounts (Per Dwelling Unit)
Single-Family Multi-Family Accessory
Dwelling/Secondary Unit
Sewer Connection $7,306.00 $6,210.00 $384.00
Water Connection $12,109.00 $7,266.00 $637.00
Water Meter $437.00 $437.00 $437.00
Storm Water Drainage $2,875.00 $2,875.00 $1.19/sq ft
Police Services $70.00 $70.00 ADUs less than 750 sq ft $0.

See note.1
Subtotal $22,797.00 $16,858.00 $2,349.31
(ADUs less than 750 sq ft)
Community Facilities
General Government - City Hall $342.00
ADUs less than 750 sq ft $0.

See note.1
General Government - Corp Yard $731.00
Community Facilities $6,429.00
Street Improvements $3,879.00
I-5 Interchange $43.00
Subtotal $11,424.00 -
Regional Fees
County Public Facility - Multiple Family - $4,643.00 ADUs less than 750 sq ft $0.

See note.1
School $5.38/sq ft $5.38/sq ft $5.38/sq ft
Services $607.00 $607.00 ADUs less than 750 sq ft $0.

See note.1
Strong Motion
Building Permit
Valuation x 0.0001
Building Permit
Valuation x 0.0001
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Section 2.0 Housing Constraints Assessment 2-36 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 SOURCE: City of Patterson, Estimated Development Fee Schedule, Effective January 1, 2021 NOTES: 1 ADUs less than 750 sq ft are exempt from incurring impact fees from local agencies, special districts, and water corporations. If an ADU is 750 sq ft or larger, impact fees shall be charged proportionately in relation to the square footage of the ADU to the square footage of the primary dwelling units (HCD Accessory Dwelling Unit Handbook, July 22).
2 Subdivisions pay Quimby Fee in lieu of land dedication, plus Mitigation Fee Act fee for park improvements. 3 Infill developments pay Mitigation Fee Act fee for land acquisition, plus Mitigation Fee Act fee for park improvements.

Table 2-12 Example of Total Residential Development Impact Fees (2021), City of Patterson
Development Fees Single-family* Multi-family**
Planning and Building Department Fees
Site Plan Approval $2,265.00 $2,265.00
Building Permit $3,213.08 $1,341.66
Plan Check $2,088.50 $872.08
Subtotal $7,566.58 $4,478.74
Impact Fees
Sewer Connection $7,306.00 $6,210.00
Water Meter $437.00 $437.00
Water Connection $12,109.00 $7,266.00
Stormwater $2,875.00 $2,875.00
Police Services $70.00 $70.00
City Hall $342.00 $342.00
Corp Yard $731.00 $731.00
Community Facilities $6,429.00 $6,429.00
Street Improvements $3,879.00 $3,879.00
I-5 Interchange $43.00 $43.00
Subtotal $34,221.00 $28,282.00
Regional Fees
School District $8,070.00 $5,111.00
County Public Facilities - $4,643.00
Services $607.00 $607.00
Strong Motion $42.84 $17.89
Subtotal $8,719.84 $10,378.89
Total $50,507.42 $43,139.63
SOURCE: City of Patterson Development Fee Schedule effective January 1, 2021 NOTES: Building valuation is based on the highest construction cost for residential uses as published in the ICC Building Valuation Data for August 2024. * Assumes a 1,500 sq. ft. single-family unit.
** Assumes a 950 sq. ft. multi-family unit.

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Section 2.0 Housing Constraints Assessment 2-37 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 2-13 provides a comparison of these total fees between the City of Patterson and nearby jurisdictions. Patterson has the highest total fees for single-family and multi-family dwellings among nearby jurisdictions, primarily due to community facility fees. These fees are essential for funding new development and creating vital amenities such as parks, city hall, a community center, a senior center, an aquatics center, and a sports complex. Because Patterson is located farther from neighboring cities, it is crucial to develop these amenities locally to ensure residents have convenient access to recreational, social, and civic opportunities. The added cost is a necessary investment that directly enhances the quality of life, fostering a vibrant, active, and connected community.

Note that City of Modesto fees do not include school district impact fees or county public facilities fees, which would raise the total fees charged in the city.

Table 2-13 Total Fee Comparisons with Nearby Jurisdictions Jurisdiction Single-Family Multi-Family
Patterson $50,507.42 $43,139.63
Newman $41,042.74 $24,880.67
Ceres $38,027.15 $27,787.22
Modesto $30,720.001 $23,157.001
Turlock $30,582.00 $21,812.00
Stanislaus County $24,038.002 $24,147.002
SOURCE: City of Modesto Adopted Housing Element 2031-2031 (December 2023); City of Ceres Revised Draft Housing Element 2023-2031 (July 2024); City of Newman Revised Draft Housing Element 2023-2031 (July 2024).

NOTES: Amounts refer to per unit cost.
1 Total fees do not include School District Impact Fee, $4.79 per square foot through June 2020 or County Public Facilities Fee. 2 Includes Use Permit and Admin Charge fees in addition to development impact fees.

Local Processing and Permit Procedures
Local processing and permit procedures can pose a considerable constraint to the production and improvement of housing. Common constraints include lengthy processing time, unclear permitting procedures, layered reviews, multiple discretionary review requirements, and costly conditions of approval. These constraints increase the final cost of housing, uncertainty in the development of the project, and overall financial risk assumed by the developer.

Residential Permit Processing
Processing and permit procedures and applications are available on the City’s website.7 The review and entitlement process is initiated by the submission of an application. Within 30 days of receipt of an application, the Planning Director makes a determination of completeness. After acceptance of a complete application, the project is reviewed in accordance with the environmental review procedures of the California Environmental Quality Act (CEQA). Public hearings are required to 7 https://pattersonca.gov/139/Applications-Forms
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Section 2.0 Housing Constraints Assessment 2-38 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 consider all applications for a CUP, variance, architectural and site plan review, alteration permit, planned development, master plan, specific plan, zoning code and map amendment, prezoning, development agreement, and general plan amendment.

Approval Authorities
The City’s Planning Director, Planning Commission, and City Council are the approval authorities for residential development projects. The Planning Director conducts an initial review of an application for residential development and provides a recommendation for architectural and site plan review to the Planning Commission.

The Planning Director is also the approval authority for administrative use reviews to evaluate and determine requests for uses and activities that may have minor impacts on adjacent properties and require specific site considerations. This review applies to duplexes. The Director’s decision is based on criteria set forth in the zoning code, and the determination is accompanied by written findings.

To approve an application, the director must find that the proposed use is permitted within the zoning district, the site is suitable for the use in terms of access, utilities, and physical constraints, and that the approval will not be detrimental to the public or surrounding properties. If the findings are met, the director may impose conditions to ensure the project complies with applicable standards and regulations. The administrative use review process is relatively minor, with clear and objective approval findings, making it an efficient and non-constraining procedure for the development of duplexes. The Planning Commission has the final approval authority for applications for a CUP, variance, alteration permit, and architectural and site plan review.

Applications for planned development, master plans, specific plans, zoning ordinance and map amendments, prezoning, development agreements, and general plan amendments are reviewed by the Planning Commission, which then provides a recommendation to the City Council. The City Council has the final approval authority for these types of applications.

When a proposed project requires more than one permit with more than one approval authority, all project permits are processed concurrently and final action is taken by the highest-level designated approval authority for all such requested permits. Projects that require legislative approvals (e.g., zoning code and map amendment, general plan amendment) may go to the City Council as standalone items with the associated quasi-judicial approvals stopping at the Planning Commission.

Findings of Approval
As provided in Municipal Code Chapter 18.18.040E, findings of approval for architectural and site plan review of residential projects include the following:

1. The architectural and general appearance of the structures and grounds shall have architectural unity and be in keeping with the character of the neighborhood as not to be detrimental to the orderly and harmonious development of the city, or to the desirability of investment or occupation in the neighborhood.

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Section 2.0 Housing Constraints Assessment 2-39 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025

2. The site plan is consistent with this title, any applicable specific plan, any adopted development standards and design guidelines, and the general plan. (Ord. 738 § 1 (Exh. A) (part), 2013).

The required finding stating that "The architectural and general appearance of the structures and grounds shall have architectural unity and be in keeping with the character of the neighborhood so as not to be detrimental to the orderly and harmonious development of the city, or to the desirability of investment or occupation in the neighborhood" introduces subjectivity. As a result, it is proposed for removal to enhance approval certainty for multi-family residential development. This action is included in Program 1.10, which aims to eliminate barriers to multi-family residential development in Patterson.

Appeals
Section 18.14.070 of the Patterson Zoning Ordinance states that any interested person may appeal certain actions of the Planning Director or Planning Commission made pursuant to this division to the designated appeal authority within 10 days from the date of action. However, actions by the City Council are final and no further administrative appeals are available. The Planning Commission is the appeal authority for actions made by the Planning Director, and the City Council is the appeal authority for actions made by the Planning Commission.

Typical Processing Times
Processing times for development review vary, based on the size of the project and the extent of environmental review required, and can range from six months to more than one year if an EIR is required. When an application is submitted, it is reviewed within 30 days to verify that it is complete or the applicant is notified that it is incomplete. After acceptance of a complete application, the project is reviewed in accordance with the environmental review procedures of the California Environmental Quality Act (CEQA) within 30 days. Typical processing times for complete applications are outlined in Table 2-14. These timeframes vary for single-family and multi-family projects. Single-family projects are typically processed in about one month, whereas multi-family projects are typically processed in about four to six months, unless delayed by environmental review due to significant environmental impacts.

Table 2-14 Typical Permit Processing Times
Development Type Land Use
Entitlement
Architecture
Review
Building Permit
Issuance
Single-Family Dwelling 30-45 days 30-45 days 5-6 months Multi-Family Dwelling 4-6 months 4-6 months 12-15 months Mixed-Use Residential and Commercial 30-45 days 30-45 days 12-15 months SOURCE: City of Patterson, 2024
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Section 2.0 Housing Constraints Assessment 2-40 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Permit processing for large annexation projects can take years and involve extended timelines, for a number of reasons. Annexations are contingent upon Local Agency Formation Commission (LAFCO) approval and may require elections. Other variables include agricultural land impacts; sphere of influence amendments and municipal service reviews; processing applications through LAFCO; if the annexation is City or landowner-initiated; preparation of planning documents and environmental impact reports; infrastructure analysis; coordination with neighboring public agencies; the number of landowners; public review and outreach; impacts to City finances; negotiation of development agreements; and litigation. Many of these factors can also apply to large subdivision projects which result in extended timelines. The Baldwin Ranch North subdivision, which was already within City limits, was processed within approximately two years (2021–2023). Planning permits were approved in 2023, followed by the issuance of building permits in less than six months.

Currently under development, Baldwin Ranch North is a typical processing timeline for large subdivisions within City limits. Part of the Baldwin Ranch North project application also included a development agreement between the developer and the City.

New Housing Element law now also requires an examination of the length of time between receiving approval for a housing development and submittal of an application for building permits.

The time between application approval and building permit issuance is influenced by a number of factors, none of which are directly impacted by the City. Factors that may impact the timing of building permit issuance include: required technical or engineering studies; completion of construction drawings and detailed site and landscape design; securing construction and permanent financing; and retention of a building contractor and subcontractors.

The majority of residential permits in Patterson are for single-family homes, with building permit issuance generally taking five to six months after planning approvals. Issuance of building permits for multi-family, mixed-use residential and commercial projects typically take as long as year to 15 months due to project scale.

Environmental Review
Environmental review in compliance with the California Environmental Quality Act (CEQA) is required for all discretionary development projects, including housing projects. The City complies with the timelines required by CEQA, including timelines for exempt projects per California Code of Regulations, title 14, section 15100-15112. An EIR is required of all developments that have the potential to create significant unavoidable impacts that cannot be mitigated.

Table 2-15, Permit Streamlining Act – Processing Times, outlines the City’s compliance with the Permit Streamlining Act. The Negative Declaration process typically takes three to six months to complete, depending on staffing levels. Categorically Exempt developments such as ADUs require minimal amount of time. As a result, State-mandated environmental review does not pose a significant constraint to housing development.

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Section 2.0 Housing Constraints Assessment 2-41 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Table 2-15 Permit Streamlining Act – Processing Times
Application Final Authority Processing Time
Subdivision Parcel Map (Tentative) Planning Commission and City Council 40-45 days Subdivision Parcel Map (Final) City Council 21 days
Tentative Subdivision Tract Map Planning Commission and City Council 3-6 months Subdivision Tract Map (Final) City Council 1-4 months
Negative Declaration Planning Commission or City Council 3-6 months Environmental Impact Report City Council 16 months or more SOURCE: City of Patterson, 2024
On/Off-Site Improvements
The City mandates both on-site and off-site improvements for all residential projects, which include the installation of curbs, gutters, drainage systems, sidewalks, paved streets, landscaping, and access to water and sewer services. These improvements are required either as part of the subdivision map approval process or, where no map is required, as a condition of the building permit. These measures are implemented to safeguard public health, safety, and welfare.

Curbs, gutters, and drainage systems are essential for managing stormwater and runoff within residential areas, while paved streets ensure all-weather accessibility, enhance drainage, minimize dust, and improve traffic safety. Arterials, expressways, and collectors are outlined in the general plan based on existing and projected traffic demands. Developers are responsible for the construction of roadways related to their projects and must contribute to regional transportation improvements through the payment of Street Improvement Impact Fees.

Sidewalks are essential for safe pedestrian movement, particularly for school-aged children, and are a key indicator of healthy, walkable communities. Additionally, landscaping is required in all zoning districts, with residential areas requiring at least 30 percent of the site to be landscaped. Landscaping typically includes trees, shrubs, grass, and decorative masonry walls, contributing to a more visually appealing and environmentally sustainable urban environment, while also aiding in erosion control, particularly in hillside areas. All landscaping must be installed by developers and approved prior to the occupancy of any buildings.

Connection to municipal water and sewer services is a prerequisite for tract map approval, providing essential infrastructure for potable water and waste disposal. These services are critical for supporting higher-density residential development.

City conditions are standard, objective, and aligned with the approved site plan or City standards as outlined in the Municipal Code.

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Section 2.0 Housing Constraints Assessment 2-42 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Subdivision Required Improvements
Section 16.38.010 of the Patterson Municipal Code outlines the requirements for dedicating rightsof-way and easements in subdivisions. When a parcel or final map is filed, the subdivider must offer any streets, alleys, walkways, drainage channels, and other public-use areas for dedication to the city.

If the property is dedicated for public purposes (excluding open space, parks, or schools), the city must record a certificate stating the subdivider’s details and that the city will return the property if the need for it ceases. Additionally, the subdivider is responsible for providing the necessary rightsof-way and easements for both on-site and off-site streets and utilities, covering all related acquisition costs. This is typical practice and does not present a constraint to development.

Sections 16.40.010 and 16.40.020 of the Patterson Municipal Code address the requirements for oversizing and deferring improvements in subdivisions. For Oversizing of Improvements (16.40.010), the city can require the subdivider to install larger or additional improvements that benefit not only the subdivision but also nearby properties. These improvements must be dedicated to the public. If the city mandates such oversizing, it will reimburse the subdivider for the extra costs, including interest. To recover these costs, the city may charge other property owners or agencies benefiting from the improvements, contribute toward the cost from those benefiting properties, or establish local benefit districts to collect these charges. Requiring oversizing improvements can lead to higher upfront costs and delays for developers, as they are required to install larger infrastructure than necessary, with reimbursement often depending on a complex process. This is typical to ready the residential landscape for future adjacent residential development in the city. To reduce this potential constraint, the City is seeking federal and state funding to address the costs of residential infrastructure (Program 5.7, see Chapter 3).

As for Deferred Improvements (16.40.020), improvements required for a parcel map may be deferred with approval from the city engineer, especially when the property doesn't yet have an established use. This is also possible if the zoning district only requires improvements once a specific use is established on the property. Deferred improvements offer potential benefits by allowing developers to postpone infrastructure costs and construction until the property is ready for development, helping manage cash flow and reduce upfront expenses. However, this can also create uncertainty and potential delays for development, as developers may face unexpected costs or changes in infrastructure requirements when the property is eventually developed.

Key Factors Affecting On/Off-Site Improvement Costs
The cost and scope of on- and off-site improvements required for residential development projects can vary significantly, primarily based on project size and location. Projects located within the City’s core, where existing infrastructure is readily available, generally require fewer improvements and can often connect directly to existing systems. These conditions result in shorter development timelines and lower overall costs. In contrast, projects located in areas with limited or no existing infrastructure require extensive improvements to support new development. These projects face Packet Pg. 1354
Section 2.0 Housing Constraints Assessment 2-43 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 longer timelines, higher costs, and necessitate financing from developers due to the need to construct major infrastructure components such as water, sewer, electrical, and roadway systems.

For example, the Villages of Patterson, a project currently in the planning phase and located in the northeastern quadrant of the city, is situated near substantial existing infrastructure. This proximity allows the development to connect to existing systems, reducing the need for major new improvements. Preliminary estimates from an engineering firm place the cost of required improvements for this project at approximately $80,000 to $90,000 per lot. Conversely, development in recently annexed or otherwise undeveloped areas without existing infrastructure is expected to incur significantly higher costs, necessitating financing from developers to provide infrastructure to support residential use. The City is also committed to pursuing funding to offset costs where significant new infrastructure is needed, particularly potable water as demonstrated in Program 1.14 and Program 1.15 (see Chapter 3).

While the requirements for on- and off-site improvements contribute to the overall development cost, they are imperative to ensure vital infrastructure services to residents.

Inclusionary Housing Program
Inclusionary housing describes a local government requirement that a specified percentage of new housing units be reserved for, and affordable to, lower and moderate-income households. The goal of inclusionary housing programs is to increase the supply of affordable housing commensurate with new market-rate development in a jurisdiction. This can result in improved regional jobs-housing balances and foster greater economic and racial integration within a community. The policy is most effective in areas experiencing a strong demand for housing.

The City of Patterson adopted an Inclusionary Housing Program (IHP) to expand affordable housing options in Patterson (Patterson Zoning Ordinance Chapter 18.86). Patterson’s IHP requires at least 15 percent of all newly constructed dwelling units in a residential project be developed, offered to, and sold or rented to very low-, low-, and moderate-income households at an affordable housing cost according to Section 18.86.030 of the Zoning Ordinance.

Further, the IHP requires affordable units to be constructed on site not later than the related market-rate units, unless one of the alternative actions set forth in Section 18.86.060 is performed.

The proposed alternative action requires Planning Commission approval. Alternative actions set forth in Section 18.86.060 include the following:
▪ Off-Site Housing: In the event that on-site inclusionary housing is infeasible, upon application of the developer and at the discretion of the planning commission, the developer may satisfy the requirements of providing inclusionary units as part of the residential development, in whole or in part, by constructing or substantially rehabilitating units equal to or greater than the required inclusionary units at a site different than the site of the residential development; Packet Pg. 1355
Section 2.0 Housing Constraints Assessment 2-44 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 ▪ Dedication of Land for Housing: In the event that on- or off-site inclusionary housing is infeasible, upon application of the developer and at the discretion of the planning commission, the developer may satisfy the requirement of providing inclusionary units as part of the residential development, in whole or in part, by a conveyance of land to the city for the construction of the required inclusionary units; and
▪ Payment of an In-Lieu Fee: In exceptional cases where the developer finds on-site inclusionary housing, off-site inclusionary housing, or the dedication of land is infeasible, upon application of the developer, and at the discretion of the planning commission, a fee in lieu of all or some of the inclusionary units may be paid by the developer.

Affirmatively Furthering Fair Housing
Assembly Bill 686 (AB 686), signed in 2018, establishes an independent state mandate that expands the duty of all California’s public agencies to affirmatively further fair housing (AFFH). Importantly, AB 686 also creates new housing element requirements applying to all housing elements due to be revised on or after January 1, 2021. These requirements include an assessment of fair housing practices, an analysis of the relationship between available sites and areas of high or low resources, and concrete actions in the form of programs to affirmatively further fair housing. The purpose of this assessment and analysis is to replace segregated living patterns with truly integrated and balanced living patterns and to transform racially and ethnically concentrated areas of poverty (R/ECAP) into areas of opportunity. A comprehensive assessment of fair housing required by AB 686 is found in Appendix A.

2.2 Non-Governmental Constraints
Non-governmental constraints are primarily market-driven and generally outside the direct control of local governments. Some impacts of non-governmental or market constraints can be offset to a minimal extent by local governmental actions, but usually the effects are very localized and have little influence on the total housing need within the jurisdiction or market area. Non-governmental constraints to affordable housing in Patterson consist of four major factors: price of land, availability of financing, cost of construction/availability of labor, and jobs/housing balance.

Economic Factors
The City has a limited ability to influence these factors. Land costs are impacted by the number of adequate sites that are available. Regional demand and costs have a great impact on land costs.

Construction and financing costs are also determined at the regional, state, and national levels by a variety of private and public actions, which are not controlled by the City.

The major barrier to providing housing for all economic segments of the community concerns the nature of the housing market itself. Development costs have risen to the point where building housing affordable to all economic segments of the community is difficult to achieve in California.

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Section 2.0 Housing Constraints Assessment 2-45 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Housing Market Conditions
Construction activities during the 5th Cycle Housing Element (2015 to 2023) were deeply affected by the COVID 19 Pandemic. Construction activities came to a standstill due to quarantine mandates and increasing labor and supply costs. The City is only beginning to see renewed interest in development recently.

Requests to Develop at Densities Below Those Permitted
New State Housing Element law now requires the non-governmental constraints analysis to evaluate developer requests to build at densities below the density identified in the Housing Element sites inventory. In order to incentivize development which better implements densities planned in the Housing Element sites inventory, the Housing Element sets forth Program 1.1 to ensure that there are adequate sites available throughout the planning period to accommodate the City’s RHNA (see Chapter 3). The City has not received requests to develop at densities below assumptions in the housing sites inventory.

Construction Labor Shortage and Construction Costs
Construction costs are primarily driven by the prices of materials and labor. California faces a shortage of 200,000 construction workers needed to meet Governor Newsom’s housing goals, according to a new study by Smart Cities Prevail. This study reveals that California has lost approximately 200,000 construction workers since 2006, many of whom lost their jobs during the 2008 recession and subsequently found employment in other industries. Gary Painter, a housing economist at the University of Southern California (USC), states that California has “a shortage of construction workers at the price people want to pay.” The challenge is that increasing wages for construction workers would raise overall housing construction costs. Consequently, some developers are "importing" workers from out of state and covering their temporary housing expenses during construction periods.

Another cost component is the cost of materials, which varies depending on the type of unit being built and the quality of the product being produced. Construction material costs are influenced by regional and national factors, which rarely hinder housing development in specific localities.

However, material and labor costs have dramatically increased in recent years, particularly following the COVID-19 pandemic.

One indicator of construction costs is Building Valuation Data, compiled by the International Code Council (ICC). The unit costs compiled by the ICC include structural, electrical, plumbing, and mechanical work, in addition to interior finish and normal site preparation. The data are national and do not account for regional differences, nor include the price of the land upon which the building is built. The Building Valuation Data, dated August 2024, reports the national average for development costs per square foot for apartments and single-family homes as follows:

Packet Pg. 1357
Section 2.0 Housing Constraints Assessment 2-46 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 ▪ Residential Multifamily: $149.80 to $223.61 per square foot; ▪ Residential One- and Two-Family Dwelling: $167.37 to $211.77 per square foot; and ▪ Residential Care/Assisted Living Facilities: $189.67 to $264.93 per square foot.

It should be noted that California building costs tend to be higher than national levels.

Land Costs
The cost of land is a significant contributor to the overall cost of housing. Land values fluctuate with market conditions and have generally been increasing since the 2008 Great Recession, and substantially increasing since 2012. Land prices are determined by numerous factors, most important of which are land availability and permitted development densities. As land becomes less available, the price of land increases.

The price of land varies depending on a number of factors, including size, location, the number of units allowed on the property, and access to utilities. Table 2-16 presents vacant land sales from January 2023 through May 2024 in Patterson, shown by cost and acreage. The price ranges from $0.02 to $14.10 per square foot, with an average price of $2.77 per square foot. The City has little control over land costs, which can pose a constraint to development.

Table 2-16 Vacant Lot Sales, Patterson (2023-2024)
Acreage Land Cost Cost Per
Square Foot Date Sold

6.15 $550,000 $2.05 5/24/2024

0.508 $73,000 $3.30 12/18/2023

0.549 $41,000 $1.71 12/13/2023

0.531 $42,420 $1.83 12/12/2023

0.49 $50,000 $2.34 12/12/2023

2.8 $63,000 $0.52 12/07/2023

0.53 $63,000 $2.73 12/07/2023

0.92 $90,000 $2.25 10/25/2023

0.47 $50,000 $2.44 10/16/2023

0.94 $68,000 $1.66 08/18/2023
- $580,000 - 08/08/2023

18.5 $1M $1.24 06/07/2023
- $463,850 - 05/31/2023

0.7 $196,000 $6.43 05/15/2023
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Section 2.0 Housing Constraints Assessment 2-47 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Acreage Land Cost Cost Per
Square Foot Date Sold
6,187 $4.05M $0.02 03/29/2023

0.57 $350,000 $14.10 03/16/2023

0.46 $50,000 $2.50 02/14/2023
- $520,000 - 02/10/2023
164.15 $2.20M $0.31 01/31/2023
6 $450,000 $1.72 01/24/2023
SOURCE: Zillow, 2024
Availability of Home Financing
The availability of financing can affect a person’s ability to purchase or improve a home and influences the demand and improvement of ownership housing. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose information on the disposition of loan applications by the income, gender and race of the applicants. This applies to all loan applications for home purchases, improvements and refinancing, whether financed at market rate or with federal government assistance. Locally assisted mortgages (such as first-time homebuyer programs) are not subject to HMDA reporting.

In May 2024, Freddie Mac’s primary mortgage market survey listed interest rates on home loans at

7.03 percent on a 30-year fixed loan rate. The interest rate has increased steadily over the past three years. In June 2023, the interest rate for a 30-year fixed loan was 6.79 percent. Low housing inventory can create competition among potential homebuyers, especially for first-time homebuyers.

The sales price of housing is typically adjusted for changes in mortgage rates.

Table 2-17 summarizes the outcomes of loan applications submitted to financial institutions in Patterson in 2023, covering home purchase, refinance, and home improvement loans. The table includes data on loans that were originated (approved), approved but not accepted, denied, and withdrawn or closed due to incomplete information.

The housing crisis is often attributed to the relaxation of mortgage underwriting criteria, which allowed households to secure loans beyond their long-term affordability. Any income reduction, such as layoffs or reduced work hours, led to loan defaults. Currently, lenders report that capital is available for highly qualified buyers, but the limited housing inventory and low buyer confidence continue to slow the housing market recovery.

In 2023, a total of 708 households applied for a loan to purchase a home, refinance, or for home improvements. A total of 142 households applied for government-backed loans (e.g., FHA, VA), resulting in a 61.3 percent approval rate and a 9.9 percent denial rate. For conventional loans, 256 Packet Pg. 1359
Section 2.0 Housing Constraints Assessment 2-48 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 households in applied, with a 64.5 percent approval rate and an 8.2 percent denial rate. Additionally,

32.4 percent of loan applications were for refinancing, and 11 percent were for home improvements.

Table 2-17 Mortgage Lending Approval Rates (2023), City of Patterson Loan Type Total
Applicants Loans Originated Approved Not Accepted
Applications
Denied
Withdrawn or
Incomplete
Government Backed
Purchase 142 87 61.3% 3 2.1% 14 9.9% 38 26.8%
Conventional
Purchase 256 165 64.5% 12 4.7% 21 8.2% 58 22.7%
Refinance 230 98 42.6% 6 2.6% 38 16.5% 88 38.3%
Home Improvement 80 33 41.3% 3 3.8% 36 45.0% 8 10.0%
Total 708 383 54.1% 24 3.4% 109 15.4% 192 27.1%
SOURCE: FFIEC Home Mortgage Disclosure Act MSA/MD Aggregate Reports-- Disposition of loan applications, by location of property and type of loan, 2023.

Note: This dataset is the sum of the loan applications for Tracts 32.01, 32.03, 32.04, 32.05, 32.06, and 33.

The higher approval rates suggest that financial institutions are willing to lend, particularly to highly qualified buyers. However, the presence of denial rates (8.2 percent for conventional and 9.9 percent for government-backed loans) shows that some applicants still struggle to meet lending criteria, possibly due to credit issues or insufficient income. Thirty-two percent of loan applications for refinancing indicates that a significant number of homeowners may be seeking to take advantage of favorable interest rates to lower their monthly payments or consolidate debt. An 11 percent application rate for home improvement loans suggests ongoing investment in existing homes, which may reflect confidence among homeowners in the local housing market. Overall, these patterns highlight that while there is access to financing for qualified individuals, barriers still exist for some, and the limited housing inventory, combined with cautious buyer sentiment, continues to influence the market dynamics in Patterson.

2.3 Environmental Constraints
Environmental hazards affecting housing units include seismic hazards, flooding, toxic and hazardous waste, fire hazards and noise. The following hazards may impact future development of residential units in the city. The following assessment of environmental constraints, including seismic hazards, flooding, and fire rely the 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan, incorporated herein by reference.

Seismic Hazards
The City of Patterson and its surrounding areas experience lower-than-average earthquake activity compared to the rest of California. The Great Valley Thrust Fault System, part of the Ortigalita Packet Pg. 1360
Section 2.0 Housing Constraints Assessment 2-49 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 Fault Zone and designated as an Alquist-Priolo Earthquake Fault Zone, lies along Patterson's western boundary. Although this fault hasn't been active historically, future activity cannot be ruled out. The San Joaquin Fault, 15 miles south of Patterson but extending through its western area, is also nearby. Other regional faults include the highly active San Andreas Fault, the Hayward Fault, and the Patterson Pass Fault, the latter of which produced a 4.5 magnitude earthquake in 1946.

Since 1881, there has been no record of seismic activity originating within the City of Patterson itself; however, Stanislaus County has experienced shaking from earthquakes centered elsewhere.

Documented earthquakes that affected the area occurred in 1872, 1906, 1952, 1966, 1984, 1989, and most recently in 2021, when a 6.0 magnitude earthquake centered in the Little Antelope Valley along the California/Nevada border was felt by residents. While the County has seen minor damage from these events, the 1906 Los Banos earthquake caused significant damage. Based on the mapped earthquake shaking potential for Stanislaus County and the City of Patterson, the proximity to the Great Valley Thrust Fault System, Ortigalita Fault Zone, and San Joaquin Fault, combined with the history of shaking without surface rupture, indicates that the probability of damaging seismic ground shaking in the City of Patterson is considered occasional. Potential geologic and soil hazards can be increased by inappropriate development, seismic activity and heavy rains.

Flooding
The primary flood risks in Stanislaus County that could affect the City of Patterson are riverine and local urban flooding, typically caused by severe weather and excessive rainfall, whether locally, upstream, or from winter snowmelt. Much of the central and northeastern areas of Patterson are within FEMA's Special Flood Hazard Area (SHFA) or 100-year floodplain, making flood risks and regulatory requirements critical considerations for future land use. Some areas of the City may also be prone to localized stormwater flooding during severe storms. The remainder of Patterson lies outside FEMA's 0.2 percent and 1 percent annual chance floodplains. Given Stanislaus County's flooding history, Patterson is considered likely to face future flood risks. According to the 2022-2027 Stanislaus County Multi-Jurisdictional Hazard Mitigation Plan,8a flood vulnerability assessment was completed in 2021, revealing the majority of properties fall within the 0.2 percent annual chance floodplains than 1 percent annual change floodplains.

Fire
Both urban and wildland fire conditions are present in Stanislaus County, increasing the risk of property damage, injury, and loss of life. While most of the County, including the City of Patterson, has low fuel loading, primarily consisting of crops and grasses, the far western and eastern portions contain undeveloped, rugged terrain with highly flammable grass, brush, and some pine. These areas, identified by CAL FIRE as State Responsibility Areas (SRAs), are ranked as moderate fuel hazards, 8 https://www.stanoes.com/home/showpublisheddocument/484/638380927334470000 Packet Pg. 1361
Section 2.0 Housing Constraints Assessment 2-50 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 particularly in the region west of I-5. In the southwest quadrant of the City, west of Baldwin Road and south of Sperry Avenue, there is a small area designated as having a very high fire threat.

However, there are no very high wildfire hazard severity zones within the city limits. While the city is adjacent to a very high wildfire threat area to the west, wildfire hazards are considered low priority and are addressed primarily for planning and awareness purposes.

Noise
Excessive noise can adversely affect human health and well-being, economic productivity, and property values, especially in areas where sensitive land uses such as senior housing, schools, childcare, and hospitals are located. Mobile and stationary noise sources contribute to overall noise levels, and the impacts of both must be analyzed when considering environmental effects of new development. Potentially significant sources of noise within the Patterson Planning Area include vehicular traffic, industrial-type uses such as the wastewater treatment plant. The City's general plan includes measures to mitigate potential noise impacts from development.

Radiological Hazards and Hazardous Materials
Regulations which govern the storage, use, transportation and disposal of radioactive materials are administered by the Radiological Health Branch of the California Department of Health Services.

Section 6.40.010 of the City’s Zoning Code defines hazardous materials as, “any substances or materials in a quantity or form which, in the determination of the fire chief of the city or his authorized representative, pose an unreasonable and imminent risk to the life, health or safety of persons or property or to the ecological balance of the environment, and shall include, but not be limited to, such substances as explosives, radioactive materials, petroleum or petroleum products or gases, poisons, etiologic (biologic) agents, flammables and corrosives.” The Zoning Ordinance currently allows heavy industrial activities in the Heavy Industrial (HI) Zoning District, located in the central region of the city east of Highway 33, and north of Zacharias Road west of Highway 33. The City’s fire department is authorized to clean up or abate the effects of any hazardous materials deposited upon or into property or facilities of the city (Zoning Ordinance Section 6.40.020).

Agricultural and Open Space Lands
Williamson Act Contracts are voluntary and formed between a county or city and a landowner for the purpose of restricting specific parcels of land to agricultural or related open space use. Private land within locally-designated agricultural preserve areas are eligible for enrollment under a contract. The minimum term for contracts is ten years. However, since the contract term automatically renews on each anniversary date of the contract, the actual term is essentially indefinite. Landowners receive substantially reduced property tax assessments in return for enrollment under a Williamson Act contract. Property tax assessments of Williamson Act contracted land are based upon generated income as opposed to potential market value of the property.

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Section 2.0 Housing Constraints Assessment 2-51 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 According to the California Department of Conservation's Important Farmland Finder Map,911 parcels designated as Prime Farmland are enrolled in Williamson Act Contracts. Although future city growth will likely encroach on farmland, this will not pose a significant constraint on the provision of additional housing units during the planning period. No housing opportunity sites included in the site inventory have active Williamson Act Contracts.

2.4 Infrastructure Constraints
Water Supply
The City of Patterson Water Division provides water resources to city residents through pumping of groundwater from the Delta-Mendota Subbasin, which is the city’s sole source of all potable water.

This groundwater basin spans 747,000 acres across parts of Stanislaus, Merced, Madera, and Fresno County. The Delta-Mendota Subbasin is designated by the Department of Water Resources as a critically overdraft high priority basin.

In 2019, the City of Patterson became a Groundwater Sustainability Agency (GSA) within the DeltaMendota Subbasin, joining seven other Groundwater Sustainability Agencies in the Northern and Central Delta-Mendota Region to develop a Groundwater Sustainability Plan (GSP) (hereinafter “plan”).10 The plan, mandated by the Sustainable Groundwater Management Act (SGMA), aims to achieve groundwater sustainability in the region by 2040. It addresses issues like overdraft and identifies projects and management actions to reduce reliance on groundwater, ensuring current and future demands are met sustainably.

The City operates seven deep underground water wells for drinking, three non-potable wells for irrigation, and three storage tanks all within three pressure zones. The City’s Water Division is also responsible for maintenance and repairs on the city’s water infrastructure, including 57 miles of water mains, 860 fire hydrants, 978 water valves, and 483 backflow prevention assemblies. All water services in the city are metered, for which meter reading is performed every month for over 6,600 active water accounts.

According to the City of Patterson’s 2020 Urban Water Management Plan, actual water demand in 2020 was estimated at 4,454 acre-feet per year. Demand is projected to rise to 6,127 acre-feet per year by 2035 and 7,681 acre-feet per year by 2045.11
In March 2023, the Department of Water Resources (DWR) issued findings which determined that the six GSP’s that had been submitted for the Delta-Mendota Subbasin were ‘Inadequate’ because it did not provide the necessary coordination of groundwater management required by SGMA and 9 https://maps.conservation.ca.gov/dlrp/WilliamsonAct/
10http://deltamendota.org/ncdm-gsp-review/
11City of Patterson, 2020 Urban Water Management Plan, Table 4-1 and Table 4-2.

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Section 2.0 Housing Constraints Assessment 2-52 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 DWR Regulations. As a result of the inadequacy determination, a coordination committee representing all 23 GSAs in the Delta-Mendota Subbasin prepared a new single GSP governing the entire subbasin. The new GSP was adopted by each of the GSPs, including the City, and submitted to DWR in December 2024 (GSP 2024). Under the 2024 GSP, there is a pumping reduction plan in effect which requires the City to reduce its groundwater pumping to 2,626 acre-feet per year by 2030.

The City’s Public Works Department, with support from a dedicated consultant team, is actively addressing existing overdraft and future water demand to ensure that residential development needed to meet RHNA goals is not hindered. To this end, the City is aggressively pursuing multiple projects to diversify its water supply and resolve supply issues by mid-cycle. In addition to diversifying water sources, the City is implementing conservation efforts, including conservation agreements for new development, to reduce groundwater pumping and ensure responsible water use in line with required reductions. To further address water supply challenges, the City is actively seeking funding opportunities, such as Proposition 4 funds, State Revolving Loan Funds, and congressional support, having recently secured $10 million in funding.

Despite the groundwater pumping reduction plan, the City intends to support residential development through the construction and implementation of water infrastructure projects, such as the Del Puerto Creek Capture and Recharge Project, which was included as part of the Master Plan.

The City has identified and is exploring multiple options to support planned and future development, while remaining in compliance with the 2024 GSP. These options include:

1. Requiring water demand from future development to be offset by the purchase of surface water which will be diverted for recharge in the Del Puerto Creek Project basins;

2. Applying for the Bureau of Reclamation WaterSMART grant to fund project design of the Del Puerto Creek Project;

3. Upon completion of the Del Puerto Creek Project, the City will recharge the total amount of purchased and delivered surface water to meet the increase in water demand as a result of development projects;

4. The City will require development projects with potable water demand to contribute to funding for an evaluation of a redesign of the existing storm water infrastructure associated with the Black Gulch Drainage Area. This project will redesign the existing system to capture storm water for recharge rather than discharge to Salado Creek. This will address the City’s use of the upper and lower aquifers for water supply;

5. The City will work with neighboring agencies to maximize beneficial use of stormwater to develop a regional solution for recharge consistent with SGMA; Packet Pg. 1364
Section 2.0 Housing Constraints Assessment 2-53 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025

6. Implement a recycled water program; and

7. Prioritize conservation.

Wastewater
The City of Patterson Water Quality Control Facility is responsible for the operation, maintenance, and repair of the city’s wastewater treatment plant. The City collects and treats all wastewater within its limits at its Water Quality Control Facility, which also serves Diablo Grande, a community about six miles west of the City. Wastewater is transported via a gravity system to the treatment plant, located approximately 2.5 miles east of the city on Poplar Avenue near the San Joaquin River.

The treatment plant covers approximately 240 acres and has a design capacity of 2.25 million gallons per day. Approximately 1.8 million gallons per day of wastewater are treated daily. In 2020, the Water Quality Control Facility received about 1,793 acre-feet per year (AFY) of influent, representing the current potential for recycled water.

The City’s wastewater treatment plant currently does not produce recycled water, nor does it import recycled water from neighboring agencies. As part of its Water Management Plan, the City will develop a recycled water program for non-potable irrigation needs, which will involve upgrading the Water Quality Control Facility to comply with Title 22 and connecting the Water Quality Control Facility outlet to the non-potable pipe network.

The Urban Water Management Plan notes that recent conservation efforts by the City have reduced flows, resulting in no significant capacity issues at present. As a result, wastewater infrastructure availability is not expected to be a constraint on residential development during the 6th Cycle planning period.

Public Transportation
The Stanislaus Regional Transit Authority (StanRTA) operates two key bus routes serving Patterson:

Route 45, connecting to Newman and Turlock, and Route 40, providing access to Modesto. The BART Commuter Bus also links Patterson to Turlock and the Pleasanton BART station. In March 2023, StanRTA introduced service enhancements, including Sunday service on Routes 40 and 45, 60-minute service intervals, and additional bus stops in Patterson, improving connections to retail, education, and healthcare facilities. All bus stops and the commuter are central to the downtown area of the city. To support residential development on both the west and east sides of State Route 33, the City Mayor and City Manager hold regular meetings with StanRTA to discuss potential enhancements to existing routes and opportunities for system expansion.

Program 1.9 proposes strategies to support transportation demand management by enhancing access and promoting sustainable transit options (see Chapter 3). Key actions include collaborating with StanRTA to expand transportation access to the city's western and eastern regions, creating an Packet Pg. 1365
Section 2.0 Housing Constraints Assessment 2-54 EMC Planning Group City of Patterson 6th Cycle Housing Element HCD Revised Draft October 2025 incentive program for developers to offer bike parking and transit passes for residents of new affordable housing, and providing accessible information on bus frequency and transit stop locations in common areas. These initiatives are further supported by reducing minimum parking standards to encourage the development of multifamily housing and promote alternative transportation modes.

Energy Conservation
The City Building Division enforces the State Energy Efficiency Standards for Residential and Nonresidential Buildings (Government Code Title 24, Part 6) and requires Title 24 calculations during plan check. The City adopted the California Green Building Standards Code, 2022 Edition, and supports the elimination of contamination in older buildings, such as lead-based paint and asbestos during rehabilitation and code compliance inspections. The City promotes resident participation in energy conservation programs, such as the Cash for Grass Rebate Program and the High Efficiency Toilet Rebate Program.

The Cash for Grass Rebate Program aims to permanently reduce the amount of water used for landscaping purposes. The City offers $1.00 for every square foot of turf removed and replaced with drought-resistant or water-efficient landscaping. The following rules apply:
▪ Rebates are available on a first-come, first-served basis. Only one rebate per household per fiscal year;
▪ A minimum of 200 square feet of turf must be removed, with a maximum of 2,000 square feet allowed;
▪ Only City of Patterson utility customers are eligible, and they must currently be maintaining their lawn;
▪ Dead lawns are not eligible; and
▪ For front yards only, the applicant must maintain at least 50 percent of the landscape in front of their home.

Patterson City CouncilMay 19, 2026

Patterson City Council
May 19, 2026