Affordable Housing Update
& Available City Parcels
Council Goal-Setting Workshop -Agenda Item 03.A-4
By Jorge E. Garcia, City Manager
Michael Codron, Interim Community Development Director
Meeting Date: February 16, 2024
Overview
•What is Affordable Housing?
•Affordable Housing Projects Under Construction
•People’s Self-Help Housing –Pismo Terrace on Fourth Street •HASLO -Shell Beach Road Senior Housing
•Relevant Housing Element Considerations
•Available City Parcel
•Today’s Objective: Identify specific actions the City can take to further these goals during the FY24 and FY25
What is Affordable Housing?
•HUD Definition
•Housing is affordable when the cost is less than 30% of total household income
•What Does That Look Like in Pismo?
•SLO County Income Limits (4-Person Household)
•Low Income -$92,650 ($2,316/month)
•Very Low Income -$57,900 ($1,448/month)
•Extremely Low Income -$34,750 ($869/month)
•Fair Market Rents
•2-Bedroom -$2,274
•3-Bedroom -$3,045
How Is Affordable Housing Funded?
•Low Income Housing Tax Credit Programs
•State and Federal
•Provide valuable tax credits to investors that fund acquisition, rehabilitation or construction of affordable housing units •How Are Projects Selected?
•Competitive and Non-Competitive Processes
•Criteria Include
•Local participation
•Project financials
•Developer’s track record
•Location (proximity to schools, grocery stores, transit)
People’s Self-Help Housing (Pismo Terrace)
•855 North 4th Street
•1.2 Acre Site
•50 Affordable Housing
Units
•City Affordable Housing
Fund Contribution
•$2.5 Million Loan
•$50,000 per unit
•Grand Opening Soon!
HASLO Senior Housing -Shell Beach Road
•2655 Shell Beach Road
•1 Acre Site
•25 Affordable Senior Housing Units
•Mixed -Use Project (420 square-feet commercial space)
•Affordable Housing Fund Contribution
•$1,000,000
•$40,000 per unit
Pismo Beach Housing Element
•Constraints Analysis
•Land and construction costs
•Availability of financing
•Land use controls
•Inventory of Housing Sites
•449 Realistic Units (Appendix C)
•Inventory does not determine actual production
•The City does not construct housing
•Market rate housing is generally not affordable
•City has limited resources to fund affordable housing
RHNA
•RHNA –Regional Housing Needs Allocation
•459 Total Units (2019-2028)
•Strategies to Accomplish RHNA
•Implement Housing Element policies
•Identify sites and work with affordable housing developers to fund new projects Income Category
Total
Extremely
Low*
Very
Low
Low Moderate Above
Moderate
2019–2028 RHNA 56 57 71 82 193 459
Building Permits/Units
Constructed
0 23 (40%)53 (75%)16 (20%)118 (61%)210 (46%)
ADUs Permitted 0 0 1 17 0 18
Regional Housing Needs Allocation Progress 2019–2028
Source: City of Pismo Beach General Plan Annual Report, 2019-2023
Housing Element Policies
•Require Implementation (Zoning Code Amendments)
•HE-11 Workforce and Affordable Housing Incentives
•HE-12 Workforce and Affordable Housing Entitlements
•HE-13 Revision to C-1 Zone
•HE-14 Multifamily Zone Densities
•HE-15 Nonconforming Lots
•HE-18 Accessory Dwelling Units
Available City Land
•Opportunity Site -4th Street-Adjacent to Pismo Marsh
Pismo Marsh Site
•4th Street –Adjacent to Pismo Terrace
•Approximately 1 acre in size
•Opportunities
•Location
•City control
•Constraints
•Riparian oak canopy
•4th Street access driveway
•Coastal Conservancy/Cal Trans use restrictions
Direction Item
•Determine interest in pursuing City-owned parcel for
affordable housing development
•Provide direction to staff regarding implementation of Housing Element policies as part of zoning code update, where possible
•Identify goals and prioritization for the City’s affordable housing in-lieu fund