TO:
VIA:
FROM:
DATE:
Placentia City Council
CITY COUNCIL
CITY ADMINISTRATOR
DIRECTOR OF DEVELOPMENT SERVICES
MARCH 15, 2022
AGENDA REPORT
SUBJECT: 2021 HOUSING ELEMENT ANNUAL PROGRESS REPORT
FISCAL
IMPACT: NONE
SUMMARY:
State law requires cities to prepare and submit an Annual Progress Report ("APR") on the status and progress of implementing the goals identified within the City's certified Housing Element.
Government Code Section 65700 exempts charter cities from preparing an APR on the status of the housing element. However, all cities including charter cities must submit an Annual Progress Report to be eligible for certain funding programs. This report is to be submitted to the City Council, the Governor's Office of Planning and Research, and the California Department of Housing and Community Development prior to April 1 of each year. This action receives and files the 2021 Housing Element Annual Progress Report which subsequently will be sent to the State.
RECOMMENDATION:
It is recommended that the City Council take the following action:
Receive and file the 2021 Housing Element Annual Progress Report.
DISCUSSION:
Government Code Section 65400 requires that the City provide the governing body, in this case the City Council, an APR on the status and progress in implementing the Housing Element using forms and definitions adopted by the California Department of Housing and Community Development ("HCD"). Government Code Section 65700 exempts charter cities from preparing an annual report on the status of the housing element. However, all cities including charter cities must submit an annual report to be eligible for certain funding programs. As stated by HCD, the APR is an important tool to facilitate implementation of a community's Housing Element and to track and monitor progress in addressing housing needs and goals. The APR includes information on a city's progress in fulfilling the Regional Housing Needs Allocation ("RHNA"), including the
1. 1.
Mar. 15, 2022
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number of housing units permitted (that is, how many building permits were pulled by developers) by defined income level, as well as the status of programs in the housing element and efforts to remove governmental constraints.
The APR is to be provided to the Governor's Office of Planning and Research ("OPR") and to HCD prior to April 1 of every year. Once reviewed and received and filed by the City Council, Staff will electronically submit the APRs to the OPR and the HCD.
The APR is primarily a spreadsheet of required information regarding annual building activity broken down into pre -defined income levels (for example, Very Low, Low, and Moderate). These income levels correspond to the regional housing need allocation as assigned by the Southern California Association of Governments (SCAG). As detailed in the City's Amendment to the Housing Element for the 2013-2021 Planning Period, which was adopted by the City Council on January 7, 2014, the City's RHNA is 492 units. These numbers are based upon proposed housing units to be built in addition to employment and population statistics. Those 492 units, which must be achieved in the planning period of 2013 to 2021, are broken down into the following income categories:
Income Level
Extremely Low
Very Low Income
Low Income
Moderate/Above Mod Income
Above Moderate Income
2006-2014
Unfulfilled
RHNA Units
10 11
17 0
0 2013-2021
RHNA
Units
56 56
81 90
209
2013-2021
2013-2021 Total
Total RHNA Remaining
Units RHNA by
Income Level
49 0
0 40
63 79
43 343 0
Totals
38 492 432
FINAL RHNA TOTAL
185
223
During the prior Housing Element planning period of 2006-2014, Placentia was assigned a RHNA allocation of 98 units, of which 38 units were in the Extremely Low, Very Low, and Low Income categories. Collectively, these three income categories are referred to as "low income." The City's total remaining RHNA by income level is 223, which are largely assigned to the "Moderate, Low, Very Low and Extremely Low Income" categories.
Under state law, a density of 30 units/acre is considered necessary to facilitate low income housing. Because the City did not have adequate sites with zoning that allowed this density in the prior planning period, those 38 lower-income units must be carried over and accommodated in the new planning period. Therefore, the City's obligation for the 2013-2021 planning period is to provide sites with appropriate zoning to accommodate at least 231 lower-income units at a density of 30 units/acre or more. This requirement was satisfied within the newly adopted Old Town Placentia Revitalization Plan near the proposed Metrolink station, as described in Program 1.8 on page 4-4 of the Housing Element for the 2013-2021 planning period. In addition, the City will be
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examining the City -owned Tots at Baker Street for workforce housing and Staff will be working with the Council Housing, Community and Economic Development Ad -Hoc Committee in soliciting Request for Proposals from qualified developers to build a high-quality workforce housing development in this area.
Regarding affordable housing production during the planning period, the City worked with the County of Orange, and in partnership with Mercy Housing California in 2018, to begin construction of a 49 -unit affordable housing development for homeless and/or disabled Veterans (with an additional manager's unit) partially located on a property owned by Orange County Flood Control, leased to Mercy Housing and located within the City. This development, known as Placentia Veterans Village, was completed in 2020. As a result, the City total RHNA allocation for this development is 49 "Very Low" affordable housing units for this development for the 2013-2021 planning period as directed by Tom Brinkhuis from the State Department of Housing and Community Development, plus one "Above Moderate" unit for the on-site caretaker/manager's unit. This was reflected in the 2018 Housing Element Annual Progress Report and is still indicated in Table B of Attachment 1 under 2018.
However, to compensate for the County -approved funding utilized for Mercy Housing in the amount of $2,754,000, the City Council discussed its intent to absorb a number of agreed upon RHNA units from the County's RHNA unit allocation based upon the successful development of Placentia Veterans Village. On June 22, 2021, the Board approved the Memorandum of Understanding (MOA) between the County and City regarding allocations for future housing element planning periods to provide for the transfer of RHNA allocation shares between the County and City. After the MOA was approved by the Board of Supervisors, SCAG also approved the RHNA transfer which will reduce the County's RHNA allocation of very low-income units by 12 units and increase the City's RHNA share of very -low income units by 12 units. Additionally, the County's RHNA allocation of moderate -income units would be reduced by 12 units and the City's RHNA share of the moderate -income units would increase proportionally by 12 units in accordance with state law. These adjustments will be reflected in the RHNA for the 2021-2029 planning period.
Regarding additional affordable housing approved during the 2013-2021 planning period, on December 1, 2020, the City of Placentia City Council voted to approve a General Plan Amendment and Zone Change, including associated development permits, that approved the construction of 64 affordable senior housing units and one (1) manager's unit on property owned and operated by the Church of the Blessed Sacrament located at 1314 N. Angelina Avenue. In partnership with the church, the National Community Renaissance of California (National CORE) will develop and operate the senior housing development. National CORE will also facilitate the transformation of the existing church campus with two (2) two-story residential buildings that will provide age - restricted rental housing for individuals 62 years of age or older. The 64 units will be restricted to households earning less than 60% of the area median income for Orange County based upon the latest State income limits established by the State of California Department of Housing and Community Development. This development is currently in Building plan check.
In addition to the aforementioned residential developments, in 2021, the City entitled several developments. Of note, USA Properties was approved to construct 189 housing units, 187 will be
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income restricted affordable workforce housing units, and two will be manager units. The affordability mix of the units will be between 30% AMI (Area Median Income) and 80%. Also in 2021, Toffoli Investments was approved to construct 139 for -sale residential townhomes.
Regarding significant developments obtaining building permits in 2021, JPI was issued building permits for 418 residential apartment units, which are currently under construction. All of the aforementioned developments are reflected in the attached spreadsheet which will be sent to the State subsequent to City Council taking action on this item.
Prepared by:
Jame a
A si a • he City Administrator/
Economic Development Manager
Reviewed and
pproved:
Damien R. Arrula
City Administrator
Reviewed and approved:
F2
Josh M. L bert
Director of Development Services
Attachments:
1. 2021 Housing Element Annual Progress Report
2. Tab A2 of Attachment 1, Printer Friendly Format