City Council
Item #3
RTC 21-918
Study Session
Housing Element
April 6, 2021
Housing Element
Study Session Goals
• Overview of State Requirements
for Housing Element Update
• Share information on RHNA
allocation process
• Provide input on potential
strategies including an update
to the Affordable Housing
Ordinance
• Review next steps
2 Housing Element
State Requirements
• General Plan – Required Elements: 7 (+ 1 or 2*)
• Housing Element must be reviewed / approved
by California State Housing and Community
Development (HCD)
• Jurisdictions must update their housing
elements every eight (8) years:
• Cycle 5 Housing Element certified 2/13/2015
• Cycle 6 Housing Element due 1/31/2023
3 Housing Element
Status of Required General Plan Amendments
Amendments to be made during the next Housing Element Update, or by 2022, as required by State Law:
• An Environmental Justice element, to identify objectives and policies to reduce the unique or compounded health risks in disadvantaged communities
• Climate Adaptation and Resilience Policies, to be included as a part of the 2021 Climate Action Plan Update
• An update of the Safety Element for Fire Hazards and Climate Change 4 Housing Element
Components
• Review of previous Housing Element
• Goals, Programs, and Policies
• Housing Needs
• Governmental and Non-Governmental
Constraints
• Sites Inventory and Analysis
– Availability per State criteria
– RHNA capacity per State criteria 5
Housing Element
Regional Housing Needs Allocation (RHNA)
• State Department of Housing and Community Development (HCD) determines regional housing needs by affordability levels for 8 -year planning cycles
• Association of Bay Area Governments (ABAG) allocates share of region’s housing needs by affordability level to every jurisdiction • Local jurisdictions update their housing elements every 8 years to demonstrate available capacity to accommodate their allocation 6 Housing Element
Regional Housing Needs Allocation (RHNA)
• Housing Element must demonstrate capacity for full development of RHNA within the 8-year time period & provide annual progress reports • RHNA Allocation is divided up by income level
– Very Low Income (0-60% AMI)
– Low Income (60-80% AMI)
– Moderate Income (80-120% AMI)
– Above Moderate / Market Rate (>120% AMI)
7 Housing Element
Housing Production 2015-2022 (Building Permits)
8 Income
Level
RHNA
Target 2015 2016 2017 2018 2019 2020 Total
Very Low 1,050 1 130 37 168
Low 695 1 15 158 174
Moderate 755 19 16 6 5 8 3 57
Above 1,593 212 399 1,609 1,162 626 415 4,423
Total 4,093 231 417 1,615 1,167 779 613 4,822
Housing Element
Cycle 6 (2023 – 2031) RHNA Allocation Process
• State allocation to Bay Area (ABAG) Region
• ABAG Board adopted Draft RHNA Methodology (1/21/2021) • HCD reviews Draft RHNA Methodology
• ABAG Final RHNA Methodology/DRAFT RHNA (spring 2021)
• Appeal Period (summer 2021)
• Final RHNA (end 2021)
• (Adopted Housing Element due January 2023)
9 Housing Element
Cycle 6 (2023 – 2031) RHNA (Illustrative Allocations)
• Bay Area: 441,176 units (~2.5 x Cycle 5)
• Santa Clara County: 129,579 units (29.4% of Bay Area) 10 City of Santa Clara (Illustrative Allocations)
Very Low Income (0-60% AMI) 2,872 units
Low Income (60-80% AMI) 1,653 units
Income (80-120% AMI) 1,981 units
Above Moderate/Market Rate (>120% AMI) 5,126 units
Total 11,632 units (2.6% of County)
Housing Element
City of Santa Clara Cycle 5 and 6 Comparison
11 Income Category Cycle 5 (2015-2023) Cycle 6 (2023-2031) Very Low 1,050 2,872
Low 695 1,653
Moderate 755 1,981
Above Moderate 1,593 5,126
Total 4,093 11,632
Housing Element
Cycle 6 (2023 – 2031) Strategies
• General Plan Growth Capacity
• Long Range Plans (Specific Plans, Precise Plans, Focus Areas) • Accessory Dwelling Units (ADUs)
• Zoning Code Update
• Affordable Housing Ordinance
12 Housing Element
Strategies – Long Range Plans
13 El Camino Real SP
Downtown Precise Plan
Patrick Henry Dr. SP
Freedom Circle Focus Area
Tasman East SP
Planned Capacity: ~16,000 Units
Housing Element
Accessory Dwelling Units
• 71 Building Permits Issued (2020)
• Zoning Code Update
• Affordable by design
• Housing Collaborative providing
support
14 Housing Element
Zoning Code Update
• Codify objective design standards
• Create development standards
that reflect modern development
(reduce need for PD Zonings)
• Rezone sites to be consistent with
General Plan
15 Housing Element
Affordable Housing Ordinance
• Tasman East Specific Plan (10% Phase 1, 15% Phase 2)
• Citywide Affordable Housing Requirements (adopted January 2018) – Projects of 10+ units provide at least 15% of units affordable at average income <= 100% AMI
– Projects <10 units can pay In-Lieu Fee or provide 1 inclusionary unit – Option for alternative fulfillment that benefits the City – Commercial linkage fees
• Feasibility Study (2021) 16
Housing Element
Affordable Housing Ordinance – Feasibility Study
• Initiated to provide information
• No specific proposal
• Meet legal requirements
• Independent verification of market feasibility
17 Housing Element
Neighboring Cities Affordable Housing, Citywide Rental
18 0%
5%
10%
15%
20%
25%
VLI LOW MOD
Housing Element
Neighboring Cities Affordable Housing, Citywide For-Sale 19 0%
5%
10%
15%
20%
25%
VLI LOW MOD
Housing Element
Affordable Housing Feasibility Prototypes
20 Product Density &
Construction Type
Mid rise Condo 50 DU/Ac, Type V
Mid rise Rental 65 DU/Ac, Type V
Intermediate
Rise Rental
100 DU/Ac, Type III
High Rise Rental 200 DU/Ac, Type I
Townhome 20 DU/Ac, Type V
Mid rise Type III
Townhouse
Mid rise Type V
High rise Type I
Housing Element
Affordable Housing Feasibility Prototypes
21 Prototyping And Initial Pro FormasFEBRUARY 2021
Developer Input
March
12 City Council Study Session
Next Steps TBDAPRIL 2021+
April 6
Housing Element
Affordable Housing Ordinance Considerations
• Other cities have similar or greater requirements
• Some Prototypes (e.g., Type I) already face feasibility challenges • Some Prototypes (e.g., Type III) currently at feasibility limit • Townhouse development most able to bear increased requirements • Some projects become feasible if they can use a density bonus • Increased inclusionary requirement could cause project to qualify for density bonuses, resulting in more units that offset increased costs • Density bonus not helpful if it requires a change in construction type 22 Housing Element
Possible Options
• Maintain Status Quo
• Proceed with focused changes based on feasibility study • Re-evaluate commercial linkage fees
• Explore incentives or changes to other requirements that can offset financial impact of added affordability requirements
23 Housing Element
Process
24 Spring /
Summer 2021
Research/ Data
Gathering/Sites
Analysis
Fall 2021 /
Winter 2022
Draft Element
Prep &
Stakeholder
Outreach
Winter /
Spring 2022
Public Review of
Draft Housing
Element
Summer 2022
Planning
Commission
Hearing
Fall 2022
City Council
adoption
Winter 2022
HCD Review &
City Revisions
Fall 2021
CEQA Compliance
HCD
Certification
City Council
Item #3
RTC 21-918
Study Session
Housing Element
April 6, 2021