June2,2023SalinasCityCouncil65W.AlisalSt.Salinas,CA93901 Subject:SupportandRecommendationsforSalinas6thCycleHEDraft DearMayorCraigandSalinasCityCouncilmembers,
OnbehalfoftheMontereyBayEconomicPartnership(MBEP),Iwritetoexpressoursupportandrecommendationsforthe6thCycleHousingElementDraftmadeavailabletothepubliconMay12th,2023.PolicyrecommendationsinMBEP’sforthcomingwhitepaper, Practical HousingPolicy: IncreasingSupplyandAffordabilityforthe6thRegional HousingNeedsCycle,guideourapproachforevaluation.WefindthatCityofSalinas’6thCycleHousingElementincorporatespoliciesthatareinlinewithourrecommendations,whichspanthefollowingsixpolicyareas:
● Streamliningpermitting● Increasingallowabledensities● Impactfeereform● Increasingfundingsourcesforaffordablehousing● Comprehensivepro-ADUpolicies● OptimizingInclusionaryHousingOrdinances TheCityofSalinas6thCycleHousingElementincludespolicies,bothcurrentlyinpracticeandplanned,thatmatchallofoursixrecommendations.Forexample,programs1,5,6,and7entailstreamlinedpermittingthroughbothstatelawandspecificplans.Communityandpolicy-makerscancollaboratetocreateobjectivedesignguidelinesanddecidewhattypesofdevelopmentshouldbeeligibleforministerialapproval.MBEPencouragestheCityofSalinastoenableministerialapprovalfordevelopmenttypesthatmosteffectivelyincreasehousingsupply,especiallythosewhichcreateopportunitiesforlowerincomehouseholdstoliveclosetojobs,publictransit,andothercriticalpublicservicesandamenities.
Further,programs5and7intheHousingElementalignwithMBEP’spolicyrecommendationsbyenablingfeereformandincentivizingADUsandbroaderhousingdevelopmenttypes.TheInclusionaryHousingOrdinance,updatedin2022,offersflexibleoptionsforaffordablehousingindevelopmentsof10unitsormore.SpecificPlans,FocusedGrowthAreas,NewUrbanismDistricts,andOverlayDistrictsallowforflexibledensitiesandbuildingtypestoaccommodateneededdevelopmentindesignatedareasofthecitywithcommonneedsandgrowthpatterns.
MBEPapplaudstheCityofSalinasforachievingProhousingDesignationinAprilofthisyear,afeatachievedbyonly22jurisdictionsinCalifornia.Severalprograms,includingimplementationofProhousingDesignationProgramawardfunding,entailnoveluseofexternalandinternalgovernmentfundingsourcesforhousingdevelopment.MBEPrecommendsthattheCityensureadequatestaffingandprogramstofullyleveragethefundinggrantedbytheProhousingIncentivePilotandothersources. 3180
Imjin
Road,
Suite
102
Marina,
CA
93933
831
.
915.2806
TheSitesInventoryproposedbytheCitydesignatesnearly75%ofRHNAsites–4,960ofthem–totheNorthofBorondaFutureGrowthArea,namelytheWestAreaSpecificPlan(WASP)andCentralAreaSpecificPlan (CASP).Themajorityofthesesitesareforabovemoderateincome(marketrate)housingunits,lessthan10%areforverylowandlowincomehousing,androughly25%areformoderateincome.AccordingtotheHCD’sAffirmativelyFurtheringFairHousingMappingtool,WASPandCASPareinareasoflowandmoderateresourceandcurrentlywelloutsidethehalfmileradiusofhighqualitytransit.MBEPrecommendsthattheCityensuretheseplannedareasreceivehighqualityserviceinproportiontodemandastheydevelop,especiallyinareasdevelopedwithlowerincomehousingandlowerparkingratios.TheCitycanestablishmemorandaofunderstanding(MOUs)withtransitauthoritieswellinadvanceofhousingdevelopmentintheseareastoguaranteeneededservicethatwillincreasepublictransitaccessandensurereducedvehiclemilestraveled.SuchMOUscouldensureservicetoanyotherareastargetedfordevelopment,suchastheFocusedGrowthOverlaysradiatingoutfromtheDowntownCoreandNeighborhoodArea.
TheFocusedGrowthOverlays,DowntownCore,andDowntownNeighborhoodAreacontainmostoftheMixed-UseVacantandPipelinesitesintheinventory,whichcontainoraretargetedforroughlyhalfofthelowerincomeRHNAandfallinmostlylowtomoderateresourceareasorareasofhighpovertyandsegregation.Thesesitesgenerallyhaveaccesstohighqualitytransitwithinthehalf-mileradiusrecommendedforAFFHguidelines.OneoftheMixedUseUnderutilizedsites,whicharefurtherfromthedowntowncoreandaccommodatetherestofthelowerincomeRHNAsites,isnotinsidethehalf-mileradiusofhigh-qualitytransit.MBEPrecommendsthattheCityensurealloftheareastargetedforlowerincomehousinghaveaccesstohighqualitytransitastheydevelop,ideallythroughMOUsfordemand-proportionalservice.
AsmostoftheCityofSalinas’sitesinventoryfallsinsideexistinglow-moderateresourceareas–orareasofhighpovertyandsegregationsuchastheDowntownCore– MBEPwouldhighlighttheneedforbroadinvestmentinattractingandincentivizingbusinessesandinstitutionstodevelopalongsidehousingforlowerandmoderateincomehouseholdsintheMixedUseVacantandUnderutilizedMixedUseareasoftheCity.Havinghigherpayingjobsinproximitytohousingthatservesarangeofincomelevelswillcreateamorevibrantcommunity.
Finally,MBEPwouldrecommendfindingasmanyopportunitiesforstreamlined,lowercostpermittingaspossible.Program6entailscreatingstreamlinedapprovalprocessesinalignmentwithSB35andAB2162.Program7detailsreducingfeesforhousingdevelopment,streamlining,anddeferraloffeesforatleastoneaffordablehousingprojectannually.MBEPrecommendsevenhighergoalsfordefermentandreductionoffeesandcreatingministerialapprovalprocessesformanyorallhousingprojectsthatintegrateaffordablehousingusingobjectivedevelopmentanddesignguidelinestoreduceriskandcostfordevelopers.Everynewavenueforcarefullyplannedministerialapprovalincreasesthespeedatwhichthesupplyofhousing–especiallyaffordablehousing–canbedevelopedtomeetRHNAgoalsandcommunityneeds.
MBEPapplaudstheCityofSalinasincomposingitsdraft6thCycleHousingElementandachievingProhousingDesignation.TheCityofSalinasdemonstratescommitmenttogrowthandcommunitydevelopmentthatservestheentirecitythroughthisdocument– especiallyforhistoricallyunderservedgroups–whilemeetingthesteepchallengeof6thCycleRHNA.SalinasfacesthesameunprecedentedneedasmuchofCaliforniatocreatehousingopportunitiesacrossincomelevels, especiallyforlowerincomecommunitymembers.TheCity’s6thCycleRegionalHousingNeedsAllocationof6,673homes– nearlytriplethatofthe5thCycle– willrequireinnovationandstrongleadershipbystaffandotherlocalofficials.TheDraft6thCycleHousingElementdemonstratesacommitmenttomeetingthischallenge.
Sincerely,
TahraGoraya,MA,MPAPresident&CEO
3180
Imjin
Road,
Suite
102
Marina,
CA
93933
831
.
915.2806