2021 Housing Element
Annual Progress Report
City Council
March 22, 2022
Item 8.3
Presenters: Kristen Clements, Division Manager, Housing Michael Brilliot, Deputy Director, PBCE
1 Housing Element
• Annual Progress Report required to submit to
HCD and OPR by April 1st
• Contents of Housing Element
• Housing needs assessment
• Site inventory
• Constraints
• Programs
• New reporting requirements
• Higher RHNA numbers next cycle, planning
underway
2 3
San José’s Housing Needs (RHNA)
Income Category*
2021 Income Range 2014-2022
RHNA
(Units)
Annual Goal
(Units)1-person 4-person
Extremely Low
Up to 30% AMI
≤ $34,800 ≤ $49,700 4,617 525
Very Low
31%-50% AMI
$58,000 $82,850 4,616 525
Low
51%-80% AMI
$82,450 $117,750 5,428 617
Moderate
81%-120% AMI
$127,100 $181,550 6,188 703
Above Moderate $127,101+ $181,551+ 14,231 1,617
Totals 35,080 3,987
59%
of
total
4 CY 2021 Residential Building Permit Performance
184 (35%) 230 (44%)
51 (8%)
265 (38%)
730 (31%)
933 (58%)
1,663 (42%)
525 525 617 703
2,370
1,617
3,987
0 500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
ELI VLI LI MOD Total Affordable
Housing
Total Market Rate Total All Housing
Housing Units
Income Level
Housing Permits CY 2021 Annual Housing Goal
5 Cumulative RHNA Performance
611 (13%) 1,328 (29%) 387 (7%)
2,731 (44%)
5,057 (24%)
15,042 (105.7%)
20,099 (57%)
4,617 4,616 5,428 6,188
20,849
14,231
35,080
0 5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
ELI VLI LI MOD Total Affordable
Housing
Total Market Rate Total All Housing
Housing Units
Income Level
Production to-date Total RHNA Goal
6 Housing Activity
• Diverging rental and for-sale markets
• Lower rents (7% decrease) and higher vacancies (8.7% overall, 18.1% Class A) as of 4Q 2021
• Hotter for-sale market: Days on market decrease 38 days → 18 days • Slight increase in building permit activity
• 1,663 units permitted – 20% increase from 2020
• 42% of permitted units in Urban Villages – 50% increase from 2020 • While number has increased, still lower than average annual issued • Majority of residential building permits were for ADUs 7 Housing Strategies: Production
• Housing Crisis Workplan
• GP Policies IP 5.10 & 5.12 amended
• Inclusionary Housing Ordinance amended to add flexibility • Parks fee established 50% credit for moderate-income housing units • Diridon Station Area Plan & Affordable Housing
Implementation Plan
• Two NOFAs issued to support over 1,500 new affordable homes • Three sites purchased and development RFPs issued for six City-owned sites
8 Housing Strategies: Preservation
• COVID-19 response
• Project Homekey, retaining motel housing post-pandemic 9 Housing Strategies: Protection
• COVID-19 response for housing
• City Eviction Moratorium
• $29.5 million for local Emergency Rental Assistance
• Help coordinate 40+ CBO partners
• Homelessness prevention services
• Homelessness encampment services
10 2020-2021 Housing Successor Annual Report
Highlights
1. Assets of $698.7 million
2. Two required tests met
• Excess Surplus test
• Senior Housing test: ≤ 50% of LMIHAF funds spent on senior affordable housing over past 10 years
11 Staff Recommendation
1. Accept the Calendar Year 2021 Annual Progress Report on the Implementation of the San José 2014-23 Housing
Element
2. Accept the Fiscal Year 2020-21 Housing Successor to the Redevelopment Agency Annual Report
Item 8.3
2021 Housing Element Annual Progress Report
Presenter: Kristen Clements, Division Manager, Housing
Michael Brilliot, Deputy Director, PBCE