DATE: MARCH 21, 2023
DEPARTMENT: COMMUNITY DEVELOPMENT
FROM: MEGAN HUNTER, COMMUNITY DEVELOPMENT DIRECTOR
THROUGH: ROD POWELL, PLANNING MANAGER
BY: CRISTINA GONZALEZ, COMMUNITY DEVELOPMENT ANALYST
TITLE: 2022 HOUSING ELEMENT ANNUAL PROGRESS REPORT
RECOMMENDATION MOTION:
A motion to approve a Resolution approving the City of Salinas 2022 Housing Element (HE) Annual Progress Report (APR) and authorizing its submittal to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research (OPR) as required by Government Code Section 65400(b).
EXECUTIVE SUMMARY:
Section 65400 of the California Government Code requires local jurisdictions to submit a Housing Element (HE) Annual Progress Report (APR) addressing the status of the City of Salinas 2015-2023 Housing Element and progress made toward implementing its goals and policies. The report covers calendar year 2022 and highlights accomplishments related to housing production and program implementation. The report must be submitted to the HCD and OPR no later than the 1st of April each year.
BACKGROUND
The Housing Element is one (1) of seven (7) mandatory elements of the General Plan and serves as the primary policy document that identifies the goals, policies, and programs related to housing development in the City of Salinas. The City’s current HE covers an eight-year period (2015-2023) and focuses on addressing the housing needs of residents, identifying adequate land supply for housing, reducing housing production constraints, and improving housing opportunities for special needs groups. To meet statutory compliance with these reporting requirements, this report 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
Table I - Unit Constructed Pursuant to Government Code 65852.21 and Applications for Lot Splits Pursuant to Government Code 664117 (SB9) Table J - Student Housing Development for lower income students for which was granted a density bonus pursuant to subparagraph (F) of paragraph (1) of subdivision (b) of Section 65915 Summary
Local Early Action Planning (LEAP) Reporting
DISCUSSION
The City continues to make progress in implementing 2015-2023 HE goals, policies, and programs. Below are key highlights of the City’s accomplishments. 2022 Annual Progress Report Highlights:
Building Permits Issued: 137 housing related building permits; of these building permits, 134 were for Accessory Dwelling Units (ADUs), and 3 were for Multi-Family Dwelling Units.
Certificates of Occupancy: 232 units approved/finalized.
Regional Housing Needs Allocation (RHNA): The City’s RHNA allocation from 2015 through 2023 is 2,229 housing units; 57% of the targeted goal has been achieved and the City has produced a total of 1,261 units between 2015 and 2022.
Status of Program 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 development by the Housing Authority of the County of Monterey (HACM), received $2,108,987 (HOME & PLHA) in gap financing along with a fee deferral for the development impact fees on the project. Construction was completed in December 2022.
The Catalyst Apartments, a 5-unit affordable rehabilitation project received $500,000 (CDBG) in gap financing. Rehabilitation was completed in January 2022.
Sun Rose Apartments, an 11-unit affordable development was awarded $1 million (CDBG & HSA) in gap financing. Construction is expected to be completed by Summer of 2023.
Code Enforcement Program - 1,349 cases were opened; 1,260 cases were closed in 2022.
Business Support in the Alisal Neighborhood Revitalization Strategy Area (ANRSA) - The Small Business phone and email hotline assisted with over 178 calls and 222 emails. In April of 2022, the City finalized 22 CDBG Grant Agreements and distributed $400,000 of CDBG Entitlement/CDBG-CV funds to assist local businesses.
Summary of Community Program Funding - 1) ERAP Rental and Utility Assistance; 2) Salinas Downtown Streets Team; 3) Grow Salinas Fund; 4) Fair Housing Referral Services; 5) Hotel and Motel Vouchers for Homeless; 6) Street Outreach Team; 7) Salinas Homekey Projects; 8) Chinatown Navigation Center, Trailers, and Sprung Operations; 9) Rapid Rehousing; and 10) SHARE Center Operations.
Salinas Homekey Projects - In collaboration with Shangri-La and Step Up on Second Street, the City was awarded funds for the following projects:
Step Up on Sanborn – 58 units of permanent supporting housing and 1 manager units Step Up on Fairview – 45 units of permanent supporting housing and 1 manager unit Step Up in Salinas – 101 units of permanent supporting housing and 2 manager unit SHARE Center - Bay Area Community Services received FY 2022-23 HUD ESG funding in the amount of $86,521 for operations and rapid re-housing activities.
Salinas Outreach & Response Team (SORT) - The SORT team received FY 2022-23 HUD ESG funding in the amount of $72,865. The team consists of one full-time Community Development Analyst/Coordinator, four full-time Outreach Assistants, and two part-time Peer Outreach workers who perform essential outreach and engagement services with the homeless pollution and connect them to services and housing opportunities.
Continuum of Care Services - The City funded Central Coast Center for Independent Living (CCCIL), Housing Resource Center (HRC), Interim Inc, and Community Homeless Solutions to provide services to unsheltered persons in the City.
Emergency Rental Assistance Program Funds (ERAP) - The ERAP team continues to guide and process applications for residents impacted by the COVID-19 pandemic and provide rental and utility assistance. In total the City received $15.6 Million in ERAP funding. As of December 31, 2022, the City has assisted 1,563 households.
Alternative Housing Solutions - The City was awarded $500,000 for its Local Early Action Planning (LEAP). The grant earmarked $350,000 toward the General Plan and an additional $150,000 for developing pre-approved plans for Accessory Dwelling Units (ADUs). The City worked with Design Path Studio to complete four pre-approved ADU Plans which were initially released in July of 2022 to Salinas residents. Due to the 2022 Building Codes becoming effective in January of 2023, the City and its consultant had to update the four sets of ADU pre-approved plans. Updated plans were recently released in February 2023.
Housing for Local Workforce:
Zoning Code Amendment 2022-001 allow hotels and motels in certain zoning districts to operate as extended stay uses with occupancy up to ten (10) months in a year if approved through a Conditional Use Permit. Allowing the use of hotels and motels as extended stay units provides additional short-term housing opportunities.
Zoning Code Amendment 2022-002 amended the Municipal Code (Zoning Code) to allow a school district or community college district to acquire, construct, rehabilitate, or preserve affordable housing consistent with the Teacher Housing Act of 2016.
Inclusionary Housing Ordinance Highlights
Inclusionary Housing Ordinance update: On November 15, 2022, City Council amended a portion of the City’s Inclusionary Housing Ordinance to modify exemptions related to the downtown area (Central City Overlay District) to eliminate an exemption for any new residential construction projects but to continue to allow an exemption for adaptive reuse projects.
Inclusionary Housing and Density Bonus Projects in the Pipeline:
The Sun Rose Apartments - 11-unit development with 2 density bonus units. Construction is expected to be completed by Summer 2023.
The Parkside Manor Apartments - 80 units development that includes 31 density bonus units. Construction was completed in December 2022; resident will be moving in 2023.
Property located at Boronda Road and Hemmingway Drive - The project proposal for this development is set to construct 1,053 ownership units and 500 rental units. Project is in entitlement phase.
Property located at John Street and Abbott Street - The project proposal is for a mixed-use development that will include 233 residential units. Project is in entitlement phase.
Property located at 467 Market Street - The project proposal for this development is set to construct 84 units. Project is in entitlement phase. 2023-2031 Housing Element Update
As required by state, the City is in the process of updating its HE as part of the City’s Visión Salinas 2040 General Plan Update. The City of Salinas’ current 2015-2023 HE was adopted by Council in December 2015 and was certified by the California Department of Housing and Community Development (HCD) in February 2016. In consideration of the approaching expiration of the current HE at the end of 2023, the City is currently working on a comprehensive update for future Council consideration and adoption no later than December 15, 2023.
This sixth cycle update of the HE will cover an eight-year planning period of December 31, 2023 through December 31, 2031 and will consists of six (6) sections that address different aspects of housing within Salinas:
Introduction/Overview
Community Participation
Community Profile/Existing Conditions
Housing Constraints
Housing Resources
Housing Plan/Policies
New to the sixth cycle housing element is an analysis of ways to Affirmatively Further Fair Housing (AFFH). The goal of AFFH is to combat housing discrimination, eliminate racial bias, undo historic patterns of segregation, and lift barriers that restrict access in order to foster inclusive communities and achieve racial equity, fair housing choice, and opportunity for all Californians.
In order to meet the December 15, 2023 deadline and ensure technical accuracy, the City has partnered with Veronica Tam and Associates (VTA) to provide consultant support services for the update. VTA previously partnered with the City on the adopted 2015-2023 HE and brings extensive knowledge and experience in drafting housing elements with jurisdictions throughout the state.
Public participation will be key to formulating a successful HE update. The City has actively engaged the community on the subject of housing since the adoption of the 2015 HE, as a major topic of discussion in recent planning efforts, such as the Alisal Vibrancy Plan, the Chinatown Revitalization Plan, and the Visión Salinas 2040. Formal public engagement related to the HE began with an online HE workshop held on February 9th, 2023. The City anticipates significant, continued public engagement throughout 2023.
The schedule for the HE update is as follows:
July 2022 – February 2023: Selection of consultant, data collection and analysis, public engagement March – May: continued public engagement and drafting of the HE update May – June: Release of draft HE update for public review and comment June – September: Review of draft HE update by HCD
September – November: revisions to draft HE update as needed November – December: Release of final HE for public and Planning Commission review December 5, 2023: Council adoption of 2023-2031 HE and submission to HCD for certification DEPARTMENTAL COORDINATION:
Development of the 2022 HE APR was led by the Housing and Community Development Division of the City’s Community Development Department (CDD) in collaboration with other CDD Divisions including Current Planning, Advanced Planning and Project Implementation and Code Enforcement. Additional assistance, information, and perspective were also provided by the City’s Public Works, Library and Community Services, Police, and Fire Departments.
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 2022 HE APR supports City of Salinas Strategic Plan 2022-2025 Goals of Economic Development, Housing/Affordable Housing, and Effective and Culturally Responsive Government.
FISCAL AND SUSTAINABILITY IMPACT:
There is no fiscal impact to the City for submitting the HE APR. It should be noted that cities who do not submit an HE APR to HCD and OPR may not be eligible for future grants or loan funding from HCD due to noncompliance with this requirement.
ATTACHMENTS:
Resolution
2022 Housing Element Annual Progress Report
PPT 2022 HE APR
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