DATE: MARCH 22, 2022
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, COMMUNITY DEVELOPMENT DIRECTOR
BY: ROD POWELL, PLANNING MANAGER
TITLE: 2021 HOUSING ELEMENT ANNUAL PROGRESS REPORT
RECOMMENDED MOTION:
A motion to approve a Resolution authorizing the submittal of the 2021 Housing Element (HE) Annual Progress Report (APR) to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (OPR).
RECOMMENDATION:
Staff recommends the City Council review the 2021 City of Salinas Housing Element Annual Progress Report and authorize staff to submit the report to HCD and OPR as required by Government Code Section 65400(b).
EXECUTIVE SUMMARY:
California Government Code Section 65400(b) requires the City to submit an APR annually addressing and highlighting notable progress made towards the implementation of the General Plan Housing Element. The City’s current Housing Element was adopted by City Council in 2015 and certified by HCD in February 2016. Jurisdictions must submit a 2021 APR to HCD and OPR no later than April 1, 2022.
BACKGROUND
The Housing Element is one (1) of seven (7) mandatory elements of the General Plan and the main policy document that identifies the goals, policies, and programs related to housing development in the City of Salinas. The City’s Housing Element covers an eight-year planning period and intends to address the housing needs of residents, identify adequate land supply for housing, reduce and mitigate housing production constraints, and improve housing opportunities for special needs populations. To meet statutory compliance with these reporting requirements, the APR is organized as follows:
Table A - Submitted Housing Development Applications
Table A2 - Building Activity Summary for New Construction, Entitled, Permits and Completed Units Table B - Regional Housing Needs– Permitted Units Issued by Affordability Table C - Sites Identified or Rezoned to Accommodate Shortfall Housing Need Table D - Program Implementation Status
Table E - Commercial Development Bonus Approved
Table F - Units Rehabilitated, Preserved and Acquired for Alternative Adequate Sites Table G - Locally Owned Lands included in the Housing Element Sites Inventory that have been sold, leased, or otherwise disposed Table H - Locally Owned Surplus Sites
Local Early Action Planning (LEAP) Reporting
DISCUSSION
The City continues to make progress towards the goals, policies, and programs of the City’s 2015-2023 Housing Element. Below are notable highlights and key accomplishments achieved by the City during the 2021 calendar year. 2021 APR Highlights
Building Permits Issued: 278 housing related building permits including 110 Accessory Dwelling Units (ADUs), 2 Single-Family Dwellings, and 166 Multi-Family Dwelling Units.
Certificates of Occupancy Issued: 103 residential units including 29 ADUs, 59 Single-Family Dwellings, and 15 Multi-Family Dwelling Units.
Regional Housing Needs Allocation (RHNA): The City’s has produced a total of 986 housing units representing 44% of its assigned 2,229 2015-2023 RHNA allocation.
Housing Applications Summary: The City received seventeen (17) housing applications proposing 2,051 housing units including the Future Growth Areas of which 123 units were approved.
Implementation (Table D) Highlights:
Affordable Housing Projects: Federal entitlement funds were used as gap financing for the following affordable housing projects:
Parkside Manor Phase I, an 80-unit affordable senior housing development by the Housing Authority of the County of Monterey (HACM), received $2,108,987 in HOME and PLHA funds along with a fee deferral of development impact fees.
The Catalyst Apartments, a 5-unit affordable rehabilitation project to provide supportive housing for individuals with significant mental disabilities received $500,000 in CDBG funding.
Sun Rose Apartments, an 11-unit affordable development for individuals with significant mental disabilities received $500,000 in CDBG funding.
Code Enforcement: 1,276 cases were opened; 1,262 cases were closed in 2021.
Alisal Neighborhood Revitalization Strategy Area (ANRSA) Small Business Support: Engaged businesses to participate in a “shop local” initiative resulting in the participation of over 1,000 shoppers, established a Small Business phone and email Hotline that received over 444 calls and 600 emails, and assisted twenty-two (22) local businesses with rent and utility support with $400,000 of CDBG and CDBG-COVID funds.
Community Investments: The City used a variety of HUD and HCD entitlement and Covid funding to support the following programs and initiatives: Emergency Rental and Utility Assistance, Salinas Downtown Streets Team, Grow Salinas Fund, Fair Housing Referral Services, Food Bank of Monterey County, Homeless Encampment Food Distribution, Hotel and Motel Vouchers for Homeless, Street Outreach and Response Team, Homekey Projects, Warming Shelter and Trailers Operations, Chinatown Navigation Center Trailers and Sprung Operations, Rapid Rehousing Supports and Landlord Incentives, and SHARE Center Operations.
Salinas Homekey: Successfully applied and awarded funding to facilitate the acquisition of the former Good Nite Inn to create 101 affordable permanent supportive housing units for individuals experiencing chronic homelessness. Pending HUD approval, eighty-five (85) Project Based Housing Vouchers will provide residential rental support for the next 25 years.
SHARE Center: Bay Area Community Services received FY 2021-22 HUD ESG funding in the amount of $80,684 to support facility operations and rapid re-housing activities.
Salinas Outreach and Response Team (SORT): SORT activities were supported with $79,000 of FY 2021-22 HUD ESG funding. The team consists of one (1) full-time Outreach Coordinator, four (4) part-time Community Outreach Assistants, and eight (8) volunteers who perform essential outreach and engagement services with the homeless pollution and connect them to services and housing opportunities.
Continuum of Care Services (CoC): The City funded Central Coast Center for Independent Living (CCCIL), Housing Resource Center (HRC), Interim Inc, and Community Homeless Solutions to provide vital services and supports to unsheltered residents.
Emergency Rental Assistance Program (ERAP): The City continues to guide and accept applications from residents negatively impacted by COVID-19 to provide rental and utility assistance. The city secured a total of $15 million in ERAP funding and as of March 1, 2022, has assisted 1068 resident households.
Alternative Housing Solutions: The City was awarded a $500,000 grant for Local Early Action Planning (LEAP) and earmarked $350,000 towards its General Plan and $150,000 to develop pre-approved plans for Accessory Dwelling Units (ADUs). The City continues to work with Design Path Studio to draft a set of four pre-approved ADU Plans that will become available to ADU applicants in early 2022.
Housing for Local Workforce: The City approved Zoning Code Amendment 2021-003 (ZCA 2021-003) to allow hotels/motels to obtain a Conditional Use Permit (CUP) to provide extended-stay workforce occupancies of up to 10 months per year.
Inclusionary Housing Program Update
Background: The City of Salinas approved an amendment to the provisions of its Inclusionary Housing in June 2017. The amended Inclusionary Housing Ordinance was developed to provide more flexibility as there was universal concern among both developers and housing advocates that the previous version of the ordinance was discouraging new housing development. In fact, no units that would have been subject to the old ordinance were built while it was in effect. The 2017 amended ordinance achieved consensus between developers and housing advocates with the goal of providing a variety of housing to households of all income levels with a strong focus on the needs of the local workforce. In connection with the City’s Housing Element, Land Use Element, Zoning Ordinance, and the Consolidated Plan, the 2017 Inclusionary Housing Ordinance provides additional guidelines for new housing development.
The City’s inclusionary housing policies serve as an additional tool to both improve housing affordability and meet the City’s Regional Housing Need Allocation (RHNA) as reflected in its Housing Element. As described in the City’s 2015-2023 Housing Element, the City implements the Inclusionary Housing Program to spur the production of affordable housing for both rental and ownership units to very low, lower, median, and moderate-income households.
Options for Providing Inclusionary Units: The City’s inclusionary housing requirements apply to any project that requires a Development Permit which creates ten or more for-sale dwelling units or lots through either new construction, subdivision of a property, and additions or alterations to an existing structure. For-sale developers may select from three standard options to provide on-site inclusionary housing and may receive a density bonus to construct additional units in exchange for providing affordable units. A for-sale housing developer may also opt to pay in-lieu fees which are deposited into a designated trust fund. Developers of rental units can develop units or pay an affordable rental housing impact fee. Other alternatives may also be submitted for City Council review and approval. 2021-2022 Summary of Potential Projects Subject to Inclusionary Housing:
The Sun Rose Apartments: 11-unit affordable development with 2 density bonus units. Construction started in 2021 with expected completion in 2022.
The Parkside Manor Apartments: 160-unit affordable development including 63 density bonus units to be built in two phases; construction of 80 Phase I units started in 2021.
Boronda Road and Hemmingway Drive: Proposed project for the development of 1,053 ownership and 500 rental units in conjunction with the Central Area Specific Plan.
John Street and Abbott Street: Proposed mixed-use development that will include 233 residential units. 467 Market Street: Proposed development to construct 84 affordable residential units.
DEPARTMENTAL COORDINATION:
The Housing Division team collaborated with various City departments to complete the 2021 HE APR including: Public Works, Library and Community Services, Police, Fire, and other Divisions of the Community Development Department (Current Planning, Advance Planning and Project Implementation, and Code Enforcement).
CEQA CONSIDERATION:
It has been determined the HE APR is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15306, as its strictly for informational purposes, and will not result in a major disturbance to an environmental resource.
STRATEGIC PLAN INITIATIVE:
The City Council approved its 2022-2025 Strategic Plan on March 8, 2022. The 2021 HE APR supports the Council Goal of Housing/Affordable Housing by implementing policies that encourage housing production, preserve affordable housing, expand housing opportunities for the unsheltered, increase the development of accessory housing units (ADUs), implement the Inclusionary Housing Ordinance, and promote senior and transit oriented housing development.
FISCAL AND SUSTAINABILITY IMPACT:
Submission of the 2021 HE APR has no fiscal impact to the City. It should be noted that jurisdictions who fail to submit an annual report to HCD and OPR may not be eligible for future grants or loans from HCD for noncompliance with this requirement.
ATTACHMENTS:
City Council Resolution
2021 Housing Element Annual Progress Report
Planning Commission Resolution
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