Tracy City Council
October 24, 2023

NOTICE OF SPECIAL MEETING

Pursuant to Section 54956 of the Government Code of the State of California, a Special Concurrent Meeting of the Tracy City Council and the Tracy Planning Commission is hereby called for:

Date/Time: Tuesday, October 24, 2023, 5:00 p.m.
(or as soon thereafter as possible)

Location: Tracy City Hall
333 Civic Center Plaza, Tracy, CA.

Government Code Section 54954.3 states that every public meeting shall provide an opportunity for the public to address the Tracy City Council on any item, before or during consideration of the item, however no action shall be taken on any item not on the agenda.

This meeting will be open to the public for in-person and remote participation pursuant to Government Code Section 54953(e)

For Remote Public Comment:

During the Items from the Audience, public comment will be accepted via the options listed below. If you would like to comment remotely, please follow the protocols below:
• Comments via:
o Online by visiting https://cityoftracyevents.webex.com and using the following Event Number: 2552 137 8480 and Event Password: TracyCC o If you would like to participate in the public comment anonymously, you may submit your comment via phone or in WebEx by typing “Anonymous” when prompted to provide a First and Last Name and inserting [email protected] when prompted to provide an email address. o Join by phone by dialing +1-408-418-9388, enter 25521378480#8722922# Press *3 to raise the hand icon to speak on an item.

• Protocols for commenting via WebEx:
o If you wish to comment under “Items from the Audience/Public Comment” portion of the agenda:
 Listen for the Mayor to open “Items from the Audience/Public Comment”, then raise your hand to speak by clicking on the Hand icon on the Participants panel to the right of your screen.
 If you no longer wish to comment, you may lower your hand by clicking on the Hand icon again.
o Comments for the “Items from the Audience/Public Comment” will be accepted until the public comment period is closed.

October 24, 2023 Special Meeting

1. CALL TO ORDER

2. ACTIONS, BY MOTION, OF CITY COUNCIL PURSUANT TO AB 2449, IF ANY

3. ROLL CALL

4. Items from the audience - In accordance with Council Meeting Protocols and Rules of Procedure, adopted by Resolution 2019-240, a five-minute maximum time limit per speaker will apply to all individuals speaking during “Items from the Audience/Public Comment”. For non-agendized items, Council Members may briefly respond to statements made or questions posed by individuals during public comment; ask questions for clarification; direct the individual to the appropriate staff member; or request that the matter be placed on a future agenda or that staff provide additional information to Council.

5. DISCUSSION ITEMS

5.A. Staff recommends that the City Council and the Planning Commission conduct a concurrent meeting to receive public input on the Draft Housing Element and direct staff to make amendments, as instructed, and submit the Draft Housing Element to the State Department of Housing and Community Development for review.

6. COUNCIL ITEMS AND COMMENTS

7. A DJOURNMENT

Posting Date: October 19, 2023
The City of Tracy is in compliance with the Americans with Disabilities Act and will make all reasonable accommodations for the disabled to participate in employment, programs and facilities. Persons requiring assistance or auxiliary aids in order to participate, should contact the City Manager’s Office at (209) 831-6000 at least 24 hours prior to the meeting.

October 24, 2023

Agenda Item 5.A

RECOMMENDATION

Staff recommends that the City Council and the Planning Commission conduct a concurrent meeting to receive public input on the Draft Housing Element and direct staff to make amendments, as instructed, and submit the Draft Housing Element to the State Department of Housing and Community Development for review.

EXECUTIVE SUMMARY

In accordance with State housing law, revisions to the City’s Housing Element have been drafted and must be submitted to the State Department of Housing and Community Development (HCD) for review before being considered for adoption by the Planning Commission and City Council. This public meeting is an opportunity for the City to receive input on the Draft Housing Element. Staff recommends that the Planning Commission and City Council receive input on the Draft Housing Element and direct staff to submit the Draft Housing Element to HCD for their 90-day review.

BACKGROUND

The Housing Element is a State-mandated chapter of every city’s General Plan. It is a plan to provide opportunities for the private market to develop housing for all income levels in the community. The Housing Element is required to be updated every eight years; its required contents are specified in State law; and it is required to be reviewed for compliance with State housing law by a State agency, HCD (California Government Code sections 65580 through 65589.11).

On June 7, 2022, the City Council approved a Professional Services Agreement with Veronica Tam and Associates to guide the City through the Housing Element update process. On March 22, 2023, the City Council and Planning Commission conducted a concurrent meeting where challenges related to meeting HCD requirements and Housing Element update schedule were discussed. Attachment B is a verbatim transcription of the March 22, 2023 meeting with supplemental information added (highlighted) in response to questions asked during the meeting.

The City interacted with the public to receive input for the Housing Element Update through a Housing Element website, public survey, public workshops, an interactive on-line tool, stakeholder interviews, and notices to interested parties.

Additional information regarding City activities related to preparation of the Draft Housing Element is contained later in this report.

ANALYSIS

Content of the Housing Element

Attachment A contains the Draft Housing Element. In accordance with State housing law, the Housing Element must contain the following:

Agenda Ite
m 5.A
Concurrent City Council / Planning Commission Meeting
October 24, 2023

- A sum
mary of Tracy’s population and housing characteristics, describing housing needs;
- A description of local constraints on development of housing; - A review of the City’s progress in implementing current housing programs; - Programs to promote housing opportunities; and
- A list of sites (Sites Inventory) that could accommodate new housing, demonstrating the City’s ability to meet the Regional Housing Needs Allocation (RHNA).

Tonight’s meeting is an opportunity to discuss the content of the Draft Housing Element and for members of the public to provide input regarding the Draft Housing Element.

Regional Housing Needs Allocation (RHNA)
The Housing Element’s Sites Inventory must demonstrate that it can accommodate the RHNA.

In other words, the Housing Element must identify how all of the RHNA’s new housing units could be developed in Tr
acy.

Every eight years, prior to the Housing Element update process, HCD produces an RHNA for each r
egion or county of the State, based on the region’s or county’s fair share of new housing units that should be developed. San Joaquin County’s RHNA for the upcoming Housing Element cycle is 52,719 units. San Joaquin Council of Governments (SJCOG) then divides those units among San Joaquin County and the seven cities in the County. The City of Tracy’s RH
NA for the upcoming cycle is 8,830 units. This is a 77% increase from the 5th cycle Housing Element.

The RHNA is separated into four income categories where each category is determined by the amount of household income: very low, low, moderate, and above moderate. The four income categories are defined as follows:
-very
low: less than 50% of the Area Median Income
-low: 50% to 80% of the Area Median Income
-moderate: 80% to 120% of the Area Median Income
-above moderate: greater than 120% of the Area Median Income The Ar
ea Median Income is the median income of a household in San Joaquin County, separated into categories by the number of people per household. For reference, the 2022 Area Median Income in San Joaquin County for a household of four people was $85,000 per year.

For vac
ant property, HCD treats density as a proxy for affordability. That is, for example, HCD recognizes zoning that allows a density of at least 20 dwelling units per acre as having the potential to provide for low- or very low-income households. Lower density zoning on vacant property is recognized as being available to potentially provide housing for the moderate and above-moderate-income households.

Tra
cy’s RHNA, by income category, for the next Housing Element cycle is:
-very-low-income units: 2,994
-low-income units: 1,879
-moderate-income units: 1,175

Agenda Item 5.A
Concurrent City Council / Planning Commission Meeting
October 24, 2023

-above-moderate income units: 2,782

Total RHNA: 8,830

Approximately 55 percent of the City’s RHNA is for low- and very-low-income households. The Housing Element must demonstrate there is sufficient vacant or developable property with zoning to allow the development of the number of housing units in each of the four income categories. Tracy’s existing Zoning Map and zoning regulations currently do not include sufficient vacant property to provide the next RHNA cycle’s number of new housing units in the low- and very low-income income categories. However, the Zoning Map does contain sufficient sites for the moderate and above-moderate categories. The sites identified for moderate and above moderate include single-family-zoned areas of Ellis, Tracy Hills, Tracy Village (Regency at Tracy Lakes), and others. These projects have approved or proposed tentative maps, specific plans, vested rights (through a development agreement), or voter-approved initiative for senior housing. Significant amendments to the Zoning Map and/or zoning regulations will be required to accommodate the new RHNA for the low- and very low-income categories.

Zoning Amendments to Accommodate the RHNA

The Draft Housing Element contains a number of implementation items for the City to complete in order to accommodate the RHNA. These implementation items include potentially rezoning approximately 240 acres in the City to High Density Residential (HDR) or another zone district that allows high density residential development. Another implementation item is to amend the density range in the Medium Density Residential (MDR) Zone, HDR Zone, and the commercial zones that allow residential development (General Highway Commercial, GHC and Professional Office Medical, POM).

Sites identified for potential rezoning from MDR, Medium Density Cluster (MDC), or low-density PUD zones to HDR are located throughout the City and are described in the Draft Housing Element (Attachment A) and listed, by parcel, in Appendix D of the Housing Element. Among those sites are the following areas:

-Berg Road/Byron Road area from MDR to HDR
-Mt Oso/Mt Diablo area between Tracy Boulevard and Central Avenue from MDR to HDR -South side of Clover Road, west of Holly Drive from MDC to HDR -Portions of the Tracy Hills Specific Plan area
-Portion of the Westside Specific Plan (formerly Tracy Gateway) area

These rezoning actions would require concurrent amendments to the City’s General Plan land use designations (that is, the General Plan Map) for the affected sites.

A significant zoning regulation amendment identified in the Draft Housing Element will be to increase the density ranges of the MDR and HDR zoning districts, and corresponding General Plan designations. Multifamily development allowed in the General Highway Commercial and Professional Office Medical zones would also see an increase in density. The following allowed density changes are identified:

-MDR Zone: increase from 5.9 – 12 dwelling units per acre to 5.9 – 20 dwelling units per acre; -HDR, GHC, and POM zones: increase from 12.1 – 25 dwelling units per acre to 20.1 – 35 dwelling units per acre.

Agenda Item 5.A
Concurrent City Council / Planning Commission Meeting
October 24, 2023

These potential rezoning and zoning density amendments are among a number of alternatives available to accommodate the RHNA. The purpose of the Sites Inventory and the accompanying zoning regulations is to demonstrate to HCD that there is available zoning capacity for the number of units (RHNA) allocated to the City.

Following adoption of the Housing Element, the City may choose to rezone alternative sites or amend the permitted density ranges in a different manner than identified in the Housing Element. Amendments to the HCD-certified Housing Element or to the Sites Inventory may be performed as long as the RHNA is accommodated.

Next Steps

Following tonight’s concurrent Planning Commission/City Council meeting, the Draft Housing Element will be modified in response to input and direction received, then submitted to HCD for review. The Department of HCD has 90 days to provide comments on the Draft Housing Element.

The Draft Housing Element was published on October 5, 2023. The statutory minimum 30-day public review and comment period ends on November 6, 2023, although the City will continue to receive input and comments after that date. Following the 30-day public review period, State law requires a ten-business-day period for the City to respond to comments. That ten-day period will end on November 22, 2023. Thus far, two comments on the Draft Housing Element have been received. Those comments can be categorized as clean-up edits and are contained in Attachment C.

State HCD divides the State into regions, each with different times to receive their RHNA and a corresponding deadline to complete their Housing Element update. Sixth Cycle Housing Element updates in the State’s earliest regions were due in 2019. The San Joaquin Valley is in the final region to receive its RHNA and has the latest due date. The statutory deadline for the San Joaquin Valley, including Tracy, to have an updated Housing Element is December 31, 2023.

The City is scheduled to submit the Draft Housing Element to HCD for their 90-day review period after the City’s ten business-day response period concludes on November 22, 2023.

HCD will respond by the end of the 90-day period. The Draft Housing Element will then be revised in response to HCD comments. The Planning Commission and City Council will then conduct public hearings to consider adoption of the Housing Element.

If a second stage of HCD review is required, HCD has 60 days to respond to each Housing Element review following their first 90-day review period of the Draft Housing Element.

Throughout California, during the Sixth Cycle Housing Element update, which Tracy is currently preparing, cities and counties commonly experience two to three rounds of HCD review before HCD certifies the Housing Element in substantial compliance with State housing law. If HCD determines the adopted Housing Element is not in substantial compliance with State law, the City must evaluate amendments to the Housing Element and resubmit to HCD for additional review. Such a scenario could result in additional time and policy considerations to achieve HCD certification of the Housing Element. Due to this iterative process of review, the HCD certification takes many months to achieve. HCD strongly recommends that the City Council not adopt a final Housing Element until HCD certification occurs.

Agenda Item 5.A
Concurrent City Council / Planning Commission Meeting
October 24, 2023

Schedule for Tracy’s Housing Element
October 5, 2023: Published Draft Housing Element for required 30-day Public Review October 24, 2023: Concurrent Planning Commission/City Council meeting to review Draft Housing Element
November 6, 2023: 30-day Public Comment conc ludes
October 18 – November 22, 2023: Revise Draft Housing Element as necessary to respond to comments
November 22, 2023: Submit Draft Housing Element to HCD for 90-day review

FISCAL IMPACT
Within the past two years, the City of Tracy was awarded State LEAP (Local Early Action Planning) and REAP (Regional Early Action Planning) grant funds totaling $487,075. The gr
ants are available for planning projects related to supporting housing development. The funds have been budgeted to help pay for the City’s Downtown Transit-O riented Development Plan Project, workforce/affordable housing regulation and policy updates, and the update of the General Plan Housing Element (up to $247,075). The initial Housing Element Update PSA, approved for VTA on June 7, 2022, is for $209,570, and subsequent PSA with Michael Baker International for additional public outreach for $24,600. The total amount earmarked for this project is $234,170, which is within the amount of grant money available. City staff time and costs for this project are included in the adopted Development Services Department budget.

COORDINATION / PUBLIC INPUT
The City prepared a Housing Element update web site to provide information on the Housing Element, the Housing Element update process, and how interested parties can provide input on the Housing Element up
date: TracyHEU2023.weebly.com
Information on the Housing Element web site summarizes the required contents of a Housing Element, challenges and opportunities related to accommodating the RHNA, and how participants can provide input on the City’s Housing Element update.

A bilingual survey is available for participants to identify housing needs and an on-line interactive tool (Balancing Act) is live for participants to identify location and density preferences to achieve Tracy’s RHNA. The Bal ancing Act program describes the unmet RHNA and asks participants to identify where new housing should be developed and at which densities. Only after a participant designates sufficient densities of housing at different locations in t he City i s the participant recognized as having devel oped a “housing plan” and able to submit their results. This simulation reflects the position of the City of Tracy, in that the City may not sub mit a housing plan to the State until it shows that it can accommodate the RHNA. The Balancing Act tool also provides multiple opportunities for open-ended comments.

City staff conducted three public workshops (Tuesday, May 23rd; Saturday, May 27th; and Saturday, June 3rd) at the Transit Center to help the public learn about the Housing Element Agenda Ite
m 5.A
Concurrent City Council / Planning Commission Meeting
October 24, 2023

Update and interact with the Balancing Act on-line tool.

Dir
ect stakeholder interviews were conducted with participants representing for-profit and non- profit developers and builders, housing and homeless advocates, and housing professionals.

The City published notices of meetings and events on social media, and directly notified interested parties identified by the City and those who have expressed interest (currently approximately 150 parties on the list). The City’s Mobility and Housing Department and Development Services Department provided direct input and edits to the Draft Housing Element.

CEQA DETERMINATION
As t
his is the initial Draft Housing Element that will be submitted to HCD, a final approach for review under the California Environmental Quality Act (CEQA) has not been finalized and is not needed at this stage. Submitting a draft policy, such as the Draft Housing Element, to HCD for review clearly is not a project which could have a significant effect on the environment. A final CEQA compliant approach will be determined prior to the City Council’s adoption of a final Housing Element that has been certified by HCD.

STRATEGIC PLAN
This i
tem relates to City Council Strategic Priority Quality of Life Goal Number 4, Implement Affordable Housing Initiatives.

ACTION REQUESTED OF THE CITY COUNCIL AND THE PLANNING COMMISSION Staf
f recommends that the City Council and the Planning Commission conduct a concurrent meeting to receive public input on the Draft Housing Element and direct staff to make amendments, as instructed, and submit the Draft Housing Element to the State Department of Housing and Community Development for review.

Prepar
ed by: Alan Bell, Senior Planner
Bill Dean, Assistant Director of the Development Services Department Revie
wed by: Sara Cowell, Director of Finance
Bijal M. Patel, City Attorney
Karin Schnaider, Assistant City Manager
Approv
ed by: Midori Lichtwardt, Interim City Manager

ATTACHMENTS
Att
achment A – Draft Housing Element
Attachment B – March 22, 2023 City Council / Planning Commission Concurrent Meeting Verbatim Transcription with Highlighted Supplemental Information Added in Response to Questions Asked During the Meeting
Attachment C – Comments Received to Date and Proposed Responses to the Draft Housing Element
City of Tracy
2023-2031 Housing Element
October 2023
333 Civic Center Plaza
Tracy, CA 95376
Attachment A
City of Tracy
i 2023-2031 Housing Element
Table of Contents
I. Introduction ........................................................................................ I-1 A. Community Context ............................................................................................................... I-1 B. Role of the Housing Element ................................................................................................. I-1 C. Legislative Requirements ....................................................................................................... I-2 D. Relationship to Other General Plan Elements ..................................................................... I-3 E. Public Participation ................................................................................................................. I-3

1. City Webpage and Balancing Act Tool ...................................................................... I-4

2. Housing Element Presentations, Workshops and Events ....................................... I-4

3. Stakeholder Interviews ................................................................................................ I-4

4. Online Housing Survey ............................................................................................... I-5

5. Public Review of Draft Housing Element ................................................................. I-6

6. Housing Element Adoption ........................................................................................ I-6 F. Data Sources and Methodology ............................................................................................ I-6 II. Housing Needs Assessment................................................................. II-1 A. Population Characteristics .................................................................................................... II-1

1. Population Growth Trends ........................................................................................ II-1

2. Age Characteristics ...................................................................................................... II-2

3. Race and Ethnicity ....................................................................................................... II-3 B. Household Characteristics .................................................................................................... II-5

1. Household Type and Size ........................................................................................... II-5

2. Household Income ...................................................................................................... II-8 C. Employment Market ............................................................................................................ II-11

1. Employment ............................................................................................................... II-11

2. Commuting Patterns ................................................................................................. II-13 D. Housing Problems ................................................................................................................ II-15

1. Overpayment (Cost Burden) .................................................................................... II-17

2. Overcrowding ............................................................................................................ II-19 E. Special Housing Needs ....................................................................................................... II-20

1. Seniors ......................................................................................................................... II-20

2. Persons with Disabilities .......................................................................................... II-22

3. Large Households ...................................................................................................... II-24

4. Single-Parent Households ........................................................................................ II-25

5. Farmworkers .............................................................................................................. II-25

6. Households Living in Poverty and Extremely Low Income Households ......... II-26

7. Persons Experiencing Homelessness ...................................................................... II-27

8. Cumulative Needs and Resources for Special Needs Groups in Tracy ............. II-30 F. Housing Stock Characteristics ............................................................................................ II-30

1. Housing Growth ........................................................................................................ II-30

2. Housing Type ............................................................................................................. II-32

3. Housing Tenure and Availability ............................................................................ II-33

4. Housing Age and Condition .................................................................................... II-35 G. Housing Costs and Affordability ....................................................................................... II-36

1. Homeownership Market .......................................................................................... II-36

2. Rental Market ............................................................................................................. II-37

3. Housing Affordability by Income Level................................................................. II-38 H. Affordable Housing ............................................................................................................. II-40

1. Assisted Housing ....................................................................................................... II-40 I. Future Housing Needs ........................................................................................................ II-44 City of Tracy
ii 2023-2031 Housing Element
III. Housing Constraints .......................................................................... III-1 A. Market Constraints ............................................................................................................... III-1

1. Land and Construction Costs ................................................................................... III-1

2. Availability of Financing ........................................................................................... III-2

3. Realized Densities and Approval Time ................................................................... III-3 B. Governmental Constraints ................................................................................................... III-3

1. Transparency in Developmental Regulations ........................................................ III-3

2. Land Use Controls ...................................................................................................... III-4

3. Residential Development Standards ...................................................................... III-13

4. Provision for a Variety of Housing Opportunities .............................................. III-17

5. Development and Planning Fees ............................................................................ III-24

6. On- and Off-Site Improvements ............................................................................. III-25

7. Building Codes and Enforcement .......................................................................... III-28

8. Local Permits and Processing Times ...................................................................... III-28

9. State Tax Policies and Regulations ......................................................................... III-31 C. Environmental and Infrastructure Constraints ............................................................... III-31

1. Geologic and Seismic Hazards ............................................................................... III-31

2. Flooding ..................................................................................................................... III-32

3. Wildland Fires ........................................................................................................... III-33

4. Hazardous Materials and Waste ............................................................................ III-33

5. Water Supply............................................................................................................. III-34

6. Wastewater Capacity ............................................................................................... III-36

7. Habitat Protection ..................................................................................................... III-36 IV. Housing Sites and Resources ............................................................. IV-1 A. Land Inventory ..................................................................................................................... IV-1 B. Realistic Capacity ................................................................................................................. IV-3 C. Assumed Affordability – Density and Size ...................................................................... IV-5

1. Density ......................................................................................................................... IV-5

2. Size of Development Sites ......................................................................................... IV-6

3. Environmental and Infrastructure Constraints .................................................... IV-17

4. Entitled and Pending Projects ................................................................................. IV-20

5. Accessory Dwelling Units ....................................................................................... IV-21 D. Site Inventory and Rezoning Strategy ............................................................................. IV-22 E. Ability to Meet the RHNA ................................................................................................ IV-24 F. Overall Capacity ................................................................................................................. IV-25 G. Financial Resources ............................................................................................................ IV-34

1. Administrative Resources ....................................................................................... IV-34

2. Countywide Programs ............................................................................................. IV-34

3. Statewide Resources ................................................................................................. IV-35

4. Department of Housing and Urban Development Grants ................................. IV-36 H. Energy Conservation ......................................................................................................... IV-36

Appendices
A Public Outreach
B Review of Past Accomplishments
C Affirmatively Furthering Fair Housing
D Sites Inventory

City of Tracy
iii 2023-2031 Housing Element
List of Tables
Table II-1: Population for the City of Tracy, San Joaquin County, and California ............................... II-1 Table II-2: Population Growth Trends (1980-2020) ................................................................................... II-2 Table II-3: Age Distribution .......................................................................................................................... II-2 Table II-4: Race and Ethnicity ....................................................................................................................... II-3 Table II-5: Tracy Household Growth Over Time (1980-2020) .................................................................. II-6 Table II-6: Households By Type ................................................................................................................... II-6 Table II-7: Households By Size in Tracy ..................................................................................................... II-7 Table II-8: Average Household Size in Tracy, San Joaquin County and California ............................. II-8 Table II-9: Household Income Distribution (2020) .................................................................................. II-10 Table II-10: Households by Income Category (2019) .............................................................................. II-11 Table II-11: Employment Profile ................................................................................................................ II-11 Table II-12: Major Employers (2022) .......................................................................................................... II-12 Table II-13: Mean Salary By Occupation (2022 1st Quarter) Stockton MSA, San Joaquin County .... II-13 Table II-14: Place of Work ........................................................................................................................... II-13 Table II-15: Means of Transportation to Work ......................................................................................... II-15 Table II-16: Housing Assistance Needs of Lower Income Households (2019) .................................... II-16 Table II-17: Cost-Burdened Owner and Renter Households Over Time- Tracy vs. Region .............. II-18 Table II-18: Overcrowding .......................................................................................................................... II-19 Table II-19: Special Needs Groups ............................................................................................................. II-20 Table II-20: Senior Households by Tenure Over Time ........................................................................... II-21 Table II-21: Disabilities Tallied by Age and Type ................................................................................... II-23 Table II-22: Persons with Developmental Disabilities by Age............................................................... II-23 Table II-23: Female-Headed Households with Children by Poverty Status in Tracy, San Joaquin County, and California ........................................................................................................ II-25 Table II-24: Total Households in Poverty in Tracy, San Joaquin County and California .................. II-26 Table II-25: Extremely Low Income (ELI) Households by Tenure and Housing Problems .............. II-27 Table II-26: San Joaquin Continuum of Care Homeless Counts (2017-2022) ....................................... II-28 Table II-27: 2022 Point-In-Time Data: Unsheltered Persons in Tracy ..................................................... II-28 Table II-28: Homeless Services ................................................................................................................... II-29 Table II-29: Housing Units in Tracy, San Joaquin County and California ........................................... II-31 Table II-30: Housing Growth Trends (1980-2020) ................................................................................... II-31 Table II-31: Housing Units By Type for Tracy, San Joaquin County and California .......................... II-32 Table II-32: Housing Units By Type Over Time in Tracy (2010-2020) .................................................. II-32 Table II-33: Housing Units by Number of Bedrooms Over Time (2010-2020) .................................... II-32 Table II-34: Housing Tenure ....................................................................................................................... II-33 Table II-35: Percentage Homeowner by Household Size ....................................................................... II-34 Table II-36: Age of Local Housing Stock ................................................................................................... II-36 Table II-37: Lack of Complete Facilities by Tenure ................................................................................. II-36 Table II-38: Median Home Values (August 2021-August 2022) ............................................................ II-37 Table II-39: Tracy Home Sale Prices (November 2022) ........................................................................... II-37 Table II-40: Median Gross Rent Over Time (1980-2020) ......................................................................... II-37 Table II-41: Rental Rates (November 2022) .............................................................................................. II-38 Table II-42: Housing Affordability Matrix - San Joaquin County (2022) ............................................. II-39 Table II-43: Inventory of Assisted Units ................................................................................................... II-41 Table II-44: Market Value of At Risk Units .............................................................................................. II-42 Table II-45: Required Rental Subsidies for At-Risk Units ...................................................................... II-42 Table II-46: Estimated Construction Costs to Replace At Risk Units ................................................... II-43 Table II-47: Tracy’s RHNA for 2023-2031 ................................................................................................. II-45 Table III-1: Disposition of Home Loans (2021) ......................................................................................... III-2 City of Tracy
iv 2023-2031 Housing Element
Table III-2: Land Use Designations Permitting Residential Use ............................................................ III-4 Table III-3: Tracy Hills Specific Plan Permitted and Conditionally Permitted Residential Uses .... III-12 Table III-4: Ellis Specific Plan Permitted and Conditionally Permitted Residential Uses ................ III-13 Table III-5: Residential Development Standards .................................................................................... III-15 Table III-6: Parking Requirements ............................................................................................................ III-16 Table III-7: Housing Types by Zone Category ........................................................................................ III-17 Table III-8: Permit Processing Fees ........................................................................................................... III-24 Table III-9: Street Design Criteria ............................................................................................................. III-28 Table III-10: Processing Times ................................................................................................................... III-28 Table III-11: Approximate Processing Times .......................................................................................... III-29 Table IV-1: 2023-2031 RHNA ...................................................................................................................... IV-1 Table IV-2: Pending Projects and ADUs Progress Towards RHNA ...................................................... IV-1 Table IV-3: 2023-2031 Target Sites Capacity: RHNA plus 20% Buffer .................................................. IV-2 Table IV-4: Recently Built, Approved, or Proposed Multifamily Projects ............................................ IV-3 Table IV-5: Assumed Yields ........................................................................................................................ IV-5 Table IV-6: Densities, Affordability, and Implementing Zones ............................................................. IV-6 Table IV-7: Small Lot Consolidations ......................................................................................................... IV-7 Table IV-8: Entitled and Pending Projects ............................................................................................... IV-20 Table IV-9: ADU Building Permit ............................................................................................................. IV-21 Table IV-10: ADU Affordability Assumptions ....................................................................................... IV-22 Table IV-11: Proposed Multifamily Zone Densities ............................................................................... IV-22 Table IV-12: Opportunity Sites Rezoned to HDR ................................................................................... IV-23 Table IV-13: Opportunity Sites Rezoned to MU-1 .................................................................................. IV-24 Table IV-14: RHNA Capacity and Buffer ................................................................................................ IV-24 Table IV-15: Lower Income RHNA Capacity .......................................................................................... IV-25 Table IV-16: Vacant Site Capacity ............................................................................................................. IV-26 Table IV-17: Non-Vacant Site Capacity .................................................................................................... IV-26 Table IV-18: Non-Vacant Opportunity Site Details ................................................................................ IV-27

City of Tracy
v 2023-2031 Housing Element
List of Figures
Figure II–1: Population and Percent Change Over Time (1980-2020) ..................................................... II-1 Figure II–2: Race and Ethnicity Growth Over Time (2000-2020) ............................................................. II-4 Figure II–3: Race and Ethnicity in Tracy, San Joaquin County and California (2020) .......................... II-4 Figure II–4: Households By Type (2020) ..................................................................................................... II-7 Figure II–5: Average Household Size Over Time (2010 to 2020) ............................................................. II-8 Figure II–6: Median Household Income (2020) ......................................................................................... II-9 Figure II–7: Median Household Income By Race and Ethnicity (2020) .................................................. II-9 Figure II–8: Total Employment by Occupation in Tracy, San Joaquin County and California ........ II-12 Figure II–9: Travel Time to Work For Tracy, San Joaquin County and California (2020) ................. II-14 Figure II–10: Travel Time to Work Over Time (2020) ............................................................................. II-14 Figure II–11: Total and Percent Change Cost Burdened Owner Households Over Time (1980-2020) ............................................................................................................................ II-17 Figure II–12: Total and Percent Change Cost Burdened Renter Households Over Time (1980-2020) ............................................................................................................................ II-18 Figure II–13: Disabilities for the Total Population in Tracy, San Joaquin County and California ... II-22 Figure II–14: Large Households in Tracy, San Joaquin County and California (2020) ...................... II-24 Figure II–15 Total Tracy Households in Poverty and Percent Change Over Time (2010-2020) ....... II-27 Figure II–16: Total Housing Units and Percent Change Over Time (1980-2020) ................................ II-31 Figure II–17: Household Tenure in Tracy Over Time (1980-2000) ........................................................ II-33 Figure II–18: Housing Tenure By Race Or Hispanic Origin .................................................................. II-34 Figure II–19: Percent Vacant Units By Type ............................................................................................. II-35 Figure III–1: Development Impact Fees—Single Family Residential .................................................. III-26 Figure III–2: Development Impact Fees—High Density Residential ................................................... III-27 Figure IV-1: Very High Fire Hazard Severity Zones .............................................................................. IV-18 Figure IV-2: Tracy Flood Hazards Areas ................................................................................................. IV-19

I. Introduction
City of Tracy
I-1 2023-2031 Housing Element
I. Introduction
The Housing Element represents an awareness of the need to assure that housing is provided for all economic segments of the community. The Element also satisfies the legal requirements that housing policy be a part of the General Plan. The Tracy Housing Element is prepared for the 2023-2031 update cycle for jurisdictions in the San Joaquin Council of Governments (SJCOG) region.

A. Community Context
Tracy began as an agricultural community centered on several rail lines, and eventually became the San Joaquin Valley headquarters for the Central Pacific Railroad. The City was incorporated in 1910 and grew rapidly after the first irrigation district was established in 1915. Towards the latter part of the twentieth century, the City transitioned into a primarily residential community, as more people arrived from the Bay Area seeking affordable housing, a small -town feel, and a respite from the highly urbanized San Francisco Bay region.

According to the 20 20 Census, the City population was reported at 93,000, an increase of about 12 percent in the 10 years since the 2010 Census. During this same period, the housing stock increased by approximately 7 percent. The growth in population has, in turn, increased diversity within the City. From 2010 to 20 20, Tracy became more racially and ethnically diverse. The percentage of Whites dropped from 36 percent to 27 percent, while the proportion of Asians and Hispanics increased (seven and two percentage points, respectively). The percentage of children and you ng adults decreased in Tracy between 2010 and 2020 (between one and three percentage points) while middle age and senior residents increased (three and two percentage points, respectively).

The City of Tracy’s housing stock is comprised primarily of newer single-family homes. Single - family homes make up about 84 percent of all housing units while multi -family housing comprises about 16 percent. About 40 percent of Tracy’s housing stock is over 30 years old (built before 19 90) and approximately five percent is less than ten years old (constructed since 2010).

In November 2022, the majority of homes for sale in Tracy were four -bedroom units with a median price of $825,000. The median price for two -bedroom homes was $485,000 and six -bedroom homes was $1,175,000. Rents during this same time varied by housing type and by the number of bedrooms.

The majority of apartments available consisted of one- and two-bedroom units with median rents of $2,295 and $2,558, respectively. The single -family homes available for re nt were typically much larger (three to five bedrooms) and had median rents of $2,500 to $3,300. Given these prices, home ownership and rental options for lower and moderate income households are extremely limited.

B. Role of the Housing Element
The Housing E lement is concerned with identifying ways in which the housing needs of existing and future residents can be met. The Element covers the planning period of December 31, 2023 through December 31, 2031, and identifies strategies and programs that focus on:
• Conserving and improving existing affordable housing; • Providing adequate housing sites;
• Assisting in the development of affordable housing;
• Removing governmental and other constraints to housing development; and • Promoting housing opportunities for all persons.

I. Introduction
City of Tracy
2023-2031 Housing Element I-2
An important goal of the Housing Element is to continue to enhance Tracy’s reputation as a great community in which to live, work and play. Drawing on its small town character, the City will grow in a manner that provides a high quality o f life for all current and future residents and employees.

This Housing Element provides policies and programs to address these issues. The Housing Element consists of the following major components:
• Introduction: An overview of the purpose and contents of the Housing Element. • Housing Needs Assessment: An analysis of the demographic and housing characteristics and trends.
• Housing Constraints: A review of potential market, governmental, and environmental constraints to meeting the identified housing needs.
• Housing Resources: An evaluation of resources available to address housing goals. • Housing Plan: A strategy to address the identified housing needs given the City’s constraints and resources.

C. Legislative Requirements
The provision of adequate housing for families and individuals of all economic levels is an important public goal. It has been a main focus for state and local governments. The issue has grown in complexity due to rising land and construction costs, as well as increasing competition for physical and financial resources in both the public and the private sectors.

In response to this concern, the California Legislature amended the Government Code in 1980. The amendment instituted the requirement that each local community is to include a specific analysis of its housing needs and a realistic set of programs designed to meet those needs. This analysis is to be set forth in a Housing Element and incorporated in the General Plan of each municipality.

The requirements of the law are prefaced by several s tatements of State policy set forth in Section 65580 of the Government Code:
“... The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every California family is a p riority of the highest order.”
“... Local and State governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community.” “... The legislature recognizes that in carrying out this responsibility, each local government also has the responsibility to consider economic, environmental, and fiscal factors and community goals set forth in the general plan and to cooper ate with other local governments and the State in addressing regional housing needs.”
State law requires each municipality to accomplish the following tasks:
• To identify and analyze the current and projected housing needs of all economic segments of the community including persons with disabilities.
• To evaluate and remove, as legally feasible and appropriate, the current and potential constraints to meeting those needs, including identifying the constraints that are due to the marketplace and those imposed by the government.

I. Introduction
City of Tracy
I-3 2023-2031 Housing Element
• To identify adequate sites to facilitate and encourage housing for households of all economic levels, including persons with disabilities. To establish a series of goals, objectives, policies and programs aimed at responding to the ident ified housing needs, the market and governmental constraints, and the housing opportunities.

This Housing Element addresses the planning period from 2023 -2031. It has been prepared in accordance with applicable state law, and consistent with the City of Tracy General Plan and the community’s vision of its housing needs and objectives.

D. Relationship to Other General Plan Elements
According to State planning law, the Housing Element must be consistent with the other General Plan elements. While each of the elements is independent, the elements are also interrelated to a degree. Certain goals and policies of each element may also address issues that are primary subjects of other elements. This integration of issues throughout the General Plan creates a strong basis for the implementation of plans and programs and achievement of community goals. The Housing Element is most closely tied to the Land Use Element as residential development capacities established in the Land Use Element are incorporated into the Housing Element.

This Housing Element builds upon other General Plan elements and is entirely consistent with the policies and proposals set forth by the General Plan. When an element in the General Plan is amended, the Housing Element will be reviewed and m odified if necessary to ensure continued consistency among the various elements. Specifically, State law requires that the Safety and Conservation Elements include an analysis and policies regarding flood hazard and management information upon revisions to the Housing Element. The City of Tracy adopted its General Plan in 2011, which has incorporated these topics in the Safety Element. The City will ensure that updates to these Elements achieve internal consistency with the Housing Element.

Pursuant to Government Code Section 65400, the City will annually review its progress in implementing this Housing Element and ensuring consistency between this and the City’s other General Plan Elements.

E. Public Participation
Section 65583 (c)(6)(B) of the Government Code states that “local government shall make diligent effort to achieve public participation of all the economic segments of the community in the development of the housing element and the program shall describe this effort.” The update to the Housing Element has provided residents and other interested parties with opportunities to review draft documents and proposed policies, and to provide recommendations for consideration by decision-makers pursuant to Government Code §65583. Community outreach has been conducted using several in-person and virtual engagement tools. Public participation by all economic segments is critical to the preparation of the Housing Element.

Public participation efforts have included an online housing survey in both English and S panish, stakeholder focus group interviews, dedicated webpage on City website, an email list, community workshops, joint Planning Commission and City Council study session and public hearings. Project materials and notices of the survey, web page, and on -line participation tools are posted in English and Spanish and advertised on the City’s website and other media. Appendix A of this Housing Element includes all of the public outreach materials used during the Tracy Housing Element Update.

I. Introduction
City of Tracy
2023-2031 Housing Element I-4

1. City Webpage and Balancing Act Tool
The City created the Housing Element Update webpage on the City’s website (https://tracyheu2023.weebly.com/) to provide background information on the Housing Element process, a link to the survey, documents related to the Housing Element, presentation materials and notification of future events.

The City utilized the Balancing Act online interactive tool to gather input and help inform staff, the Planning Commission, and City Council on decisions regarding the Housing Element. The Balancing Act allows the public to allocate density/housing units to areas of the City that correspond to the opportunity sites identified in the sites inventory, with the goal to allocate housing units and density until the RHNA is reached.

The following areas were the top three areas identified by the participants where housing should be allocated and increased:

1. Valpico Rd sites (Areas 8A, 8B, and 8C)

2. The Bowtie sites (Areas 7A, 7B, 7C, and 7D)

3. I-205 Corridor sites (Areas 1A and 1B)

2. Housing Element Presentations, Workshops and Events
The City conducted the following study sessions and public hearings to discuss the Housing Element update:
• Public Workshops (May 23, 2023, May 27, 2023, and June 3, 2023): these workshops were held at the Tracy Transit Center to review Housing Element issues and concerns. • Study Session (March 22, 2023): Joint City Council and Planning Commission study session that included a detailed presentation of the require ments of the 6 th cycle Housing Element Update, the RHNA requirements and the preliminary opportunity site selection strategy and results. Notification of the special concurrent meeting was done pursuant to Section 54956 of the Government Code of California.

3. Stakeholder Interviews
The City contacted over 30 individuals and groups including service providers nonprofits, and other identified stakeholders to participate in focus group interview about the housing needs and issues in Tracy. Out of the 30 individuals and groups that were contacted, 17 individuals participated in the three focus group held: April 10, 2023 at 12:00 p.m.; April 17, 2023 at 12:00 p.m., and one on April 19, 2023 at 12:00 p.m. Stakeholders in the Housing Element Update process included developers, real estate brokers, property managers, city employees, and advocates for fair housing and homeless prevention, among others. A complete stakeholder list is included in Appendix A.

The stakeholders who participated discussed a variety of concerns. The italicized text outlines how this Housing Element addresses these concerns.
• Residential Growth Allotment (RGA) as a possible constraint to growth and the development review process;
The 2015 amendment to the Growth Management Ordinance (GMO) allows the City to issue building permits in excess of those allowed in order to meet the City’s RHNA . The Housing Element includes policies to continue to prioritize the allocation of RGAs to affordable housing pr ojects as well as I. Introduction
City of Tracy
I-5 2023-2031 Housing Element
annually monitoring and evaluating the GMO to for the impacts on the cost, supply and timing of housing.
• A lack of affordable housing options and how to incentivize senior and affordable development in the City;
On February 4, 2020, the City Council identified an action plan to address affordable/workforce housing. These actions include : allowing and encouraging a variety of housing types, consider ing including an inclusionary program, preparing a ballot initiative for voter consideration to amend the City’s GMO and increasing minimum density in medium density residential zones. • High development and impact fees;
The City has several policies in place to facilitate the development of affordable ho using, including:
increased priority under the GMO, decreased construction costs through reduced standards (i.e. reduced parking, etc.).
• Tracy does not have the capacity to support people experiencing homelessness, most of the social services and housing resources are located in Stockton; and In May 2020, the City Council adopted the Homeless Strategic Plan (Strategic Plan .) In September 2020, the City Council gave direction to move forward with the development of plans for the design and construction of a temporary emergency housing facility. The site is located on 4.8 acres at 370 W.

Arbor Avenue. The 6,300 square -foot low-barrier navigation facility will accommodate people, pets, and possessions and is anticipated to provide nightly shelter for approxim ately 68 residents within a congregate sprung shelter. This Housing Element includes a program for Zoning Ordinance amendments to comply with most recent State laws related to homeless shelters and low barrier navigation centers.
• Need for more education a nd outreach to inform residents of housing law and what affordable housing is, to shift the perceived stigma.

Several programs included in this Housing Elements AFFH section address fair housing education and outreach throughout Tracy.

4. Online Housing Survey
A 15-question survey was posted on the City website on June 29, 2023 and has remained open to receive responses throughout the Housing Element update review process . The survey was posted in both English and Spanish and all responses were anonymous. Qu estions included the following:
age of respondent, years lived in Tracy and tenure, housing affordability and maintenance. A total of 138 respondents were recorded for the survey. A complete survey and tallied responses are included in Appendix A. All respondents were asked to whether they “Strongly Agree,” “Somewhat Agree,” “Neither Agree nor Disagree,” “Somewhat Disagree,” or “Strongly Disagree” with statements. The top responses are shown below and the italicized text outlines how this Housing Element addresses these issues.
• Over 50 percent of respondents strongly agreed that it is difficult to find affordable rental housing in Tracy;
This Housing Element includes programs for additional affordable housing in Tracy. The Resources section addresses ensuring adequate sites are available to meet the RHNA, which has 2,994 very low income and 1,879 low income units. The City already has pending projects for 118 very low and 23 I. Introduction
City of Tracy
2023-2031 Housing Element I-6
low income units. Additional programs in this Element include continuing the H ousing Choice Voucher program and the Affordable/Workforce Housing Action Plan. • 60 percent strongly agreed that it is difficult to find affordable homes for purchase in the City;
In addition to adequate sites to meet the RHNA allocation, the Programs in this Element addressing affordable homeownership include the Tracy Down Payment Assistance (DAP) Loan Program, Homebuyer and Financial Literacy Training and the Affordable/Workforce Housing Action Plan. • 45 percent strongly or somewhat agreed that conditions of neighborhoods (streetlights, sidewalks, parks, etc.) were the foremost challenge in the community; and The Housing Element Program include continuing Code Enforcement services and the Graffiti Abatement Program.
• 39 percent strongly or somewhat agreed that the condition of existing housing and property maintenance is the foremost challenge facing the community.

The Program section of this Element addresses resources for housing and property maintenance including the San Joaquin County Home Rehabilitation Program and the City’s Code Enforcement.

5. Public Review of Draft Housing Element
The Draft Tracy Housing Element was available for public review on October 5, 2023. The Draft Housing Element will be presented before the Planning Commission a nd City Council in a joint meeting on October 24, 2023.

6. Housing Element Adoption
The Draft Tracy Housing Element will be scheduled for adoption upon completion of the HCD review process. Once adopted, the Housing Element will be sent for HCD final review and also to the City’s Operations and Utilities Department which serves as its water and sewer service provider.

The City prioritizes the provision of water and sewer services to affordable housing development by providing RGA exemptions and exceptions for affordable housing. Public hearings will be conducted before the Planning Commission and City Council prior to a doption of the Housing Element.

F. Data Sources and Methodology
In preparing the Housing Element, various sources of information are consulted. The 2020 Census provides the basis for population and household characteristics. Although dated, no better source of information on demographics is widely accepted. In addition, the 20 20 Census must be used in the Housing Element to ensure consistency with other regional, State, and Federal housing plans.

However, several sources are used to provide reliable updates t o the 20 20 Census, including the following:
• San Joaquin Council of Governments 6th Cycle Housing Element Data Package (REAP Housing Data Workbook)
• City of Tracy General Plan and Zoning Code
• U.S. Census (2000, 2010, 2020)
• American Community Survey by the Census Bureau, Years 2006-2010 and 2016-2020 • HUD Comprehensive Housing Affordability Strategy (CHAS) data I. Introduction
City of Tracy
I-7 2023-2031 Housing Element
• Population and demographic data updated by the State Department of Finance • San Joaquin Continuum of Care Report (Point in Time County) of the Sheltered and Unsheltered Homeless
• Housing market information, such as home sales and rents, from CoreLogic, Zillow.com, Apartments.com, Rent.com
• Labor statistics from California Employment Development Department II. Housing Needs Assessment
City of Tracy
II-1 2023-2031 Housing Element
II. Housing Needs Assessment
The City strives to achieve a balanced housing stock that meets the varied needs of all income segments of the community. To understand the City’s housing need s, the nature of the existing housing stock and the housing market are comprehensively evaluated. This section of the Housing Element discusses the major components of housing needs in Tracy, including population, household, economic and housing stock characteristics. Each of these components is presented in a regional context, and, where relevant, in the context of other nearby communities. This assessment serves as the basis for identifying the appropriate goals, policies, and programs for the City to implement during the 2023-2031 Housing Element cycle.

A. Population Characteristics
Understanding the characteristics of a population is vital in the process of planning for the future needs of a community. Characteristics such as size, age and race and ethnicit y provide a unique demographic profile of the City.

1. Population Growth Trends
The population in Tracy was 91,462 persons in 2020 (Table II-1). Table II-1 also shows the population in San Joaquin County (751,615 persons) and California (39,346,023 persons) in 2020. Figure II–1 and Table II-2 show population growth trends for Tracy and surrounding jurisdictions o ver the last 40 years. The greatest period of growth for all cities in San Joaquin was between 1980 and 1990. The County itself saw the biggest increase between 2000 and 2010. Since 2010, Tracy’s population has increased around 12 percent, from 82,922 to 93,000 persons. Tracy’s rate of growth in the last decade is similar to Ripon and the County overall. The cities of Manteca and Lathrop had greater increases in population (24% and 59%, respectively), while Escalon, Lodi, and Stockton saw smaller increases in population (5%, 7% and 10%, respectively).

Table II-1: Population for the City of Tracy, San Joaquin County, and California

City of
Tracy
City % of
County
San Joaquin
County
County % of
State California
Total 91,462 12.2% 751,615 1.9% 39,346,023
Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Figure II–1: Population and Percent Change Over Time (1980-2020)

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-2

Table II-2: Population Growth Trends (1980-2020)
Jurisdiction 1980 1990 2000 2010 2020
Population Growth
1980-
1990
1990-
2000
2000-
2010
2010-
2020
Escalon 3,127 4,437 5,963 7,132 7,472 41.89% 34.39% 19.60% 4.77% Lathrop 3,717 6,841 10,445 18,023 28,701 84.05% 52.68% 72.55% 59.25% Lodi 35,221 51,874 56,999 62,134 66,348 47.28% 9.88% 9.01% 6.78% Manteca 24,925 40,773 56,999 67,096 83,498 63.58% 39.80% 17.71% 24.45% Ripon 3,509 7,455 10,146 14,297 16,013 112.45% 36.10% 40.91% 12.00% Stockton 149,779 210,943 243,771 291,707 320,804 40.84 15.56% 19.66% 9.97% Tracy 18,428 33,558 56,929 82,922 93,000 82.10% 69.64% 45.66% 12.15% County 347,342 480,628 563,598 685,306 779,233 17.30% 17.30% 21.60% 13.70% Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

2. Age Characteristics
A community’s current and future housing needs are determined in part by the age characteristics of residents. Typically, each age group has distinct lifestyles, family types and sizes, ability to earn incomes, and therefore, housing preferences. As people move through each stage of life, housing needs and preferences change. Traditional assumptions are that the young adult population (20 to 34 years old) tends to favor apartments, low to moderate cost townhomes/ condominiums, and smaller single-family units. The adult population (35 to 64 years old) repres ents the major market for moderate to relatively high cost condominiums and single-family homes. The senior population (65 years and older) tends to generate demand for low to moderate cost apartments and condominiums, group quarters, and mobile homes. To create a balanced community it is important to provide housing options that suit the needs of various age groups.

Between 2010 and 2020, the number of children age five or younger decreased by 12 percent while school age children (5 to 17 years old) decrea sed by two percent (Table II-3). All other age groups saw an increase in population during the same time period. The greatest increase was seen in the senior population, which grew from 5,750 persons in 2010 to 8,438 persons in 2020. According to the American Community Survey (ACS) data, the age groups with the highest percentage of Tracy’s population are young adults/early middle age (27%) and middle age/near retirement (26%). These age groups comprise similar percentages in San Joaquin County and in California.

The City’s age distribution reflects an aging and family -oriented community, where those nearing retirement age and seniors make up an increas ingly significant portion of the population. The lack of affordable smaller housing units in Tracy may become a n increasingly important issue for the City in the coming years.

Table II-3: Age Distribution
Age Group
2010 2020 % Change 2020
# % # %
2010 to
2020
County
(%)
State
(%)
Preschool (<5 yrs.) 6,600 8.0% 5,816 6.4% -12% 7.0% 6.1% School Age (5-17 yrs). 20,068 24.2% 19,711 21.6% -2% 20.1% 16.7% Late Teens/College Age (18-24) 7,476 9.0% 8,804 9.6% 18% 9.6% 9.5% Young Adults/Early Middle Age
(25-44)
23,826 28.7% 24,862 27.2% 4% 27.0% 28.5%
Middle Age/Near Retirement
(45-64)
19,202 23.2% 23,831 26.1% 24% 23.4% 24.8%
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II-3 2023-2031 Housing Element
Age Group
2010 2020 % Change 2020
# % # %
2010 to
2020
County
(%)
State
(%)
Senior (65+) 5,750 6.9% 8,438 9.2% 47% 12.8% 14.8%
Total Population 82,922 100.0% 91,462 100.0% – – –
Median Age – 32.3 – 35.2 – 34.4 36.7%
Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Note: The % point change column in the table describes the change in representation for each of the age cohorts shown relative to the overall population.

3. Race and Ethnicity
A community’s racial and ethnic composition may have implications for housing needs to the extent that different groups have different household characteristics and cultural backgrounds that may affect housing needs and preferences. Different racial and ethnic groups differ in their attitudes toward and/or tolerance for “housing problems” as defined by the federal Department of Housing and Urban Development (HUD), including overcrowding and housing cost burden. Perceptions regarding housing density and overcrowding, as well as the cultural practices of living with extended families tend to vary among racial and ethnic groups. Communities with a high proportion of Asian and Hispanic households tend to have a larger average household size due to the cultural practice of living with extended family members. In contrast, communities with a high proportion of White households tend to have a smaller average household size.

Tracy has become more racially and ethnically diverse over time. Between 2000 and 2020, the non - Hispanic White population decreased from 54 percent of the City’s population to 27 percent (Table II-4 and Figure II–2). During the same time period, the proportion of Black or African Americans and Ameri can Indian/Alaska Native decreased as well. Asian and Pacific Islander residents grew from eight percent of the City’s residents in 2000 to over 21 percent in 2020. Hispanics increased from 28 percent to 39 percent and residents who identified as Other Races/Two or More Races grew from 4 percent to 6 percent. In 2020, Tracy’s racial and ethnic diversity is similar to both San Joaquin County and the State (see Figure II–3).

Table II-4: Race and Ethnicity
Race/Ethnicity
2000 2010 2020 % Change
(2000-
2010)
% Change
(2010-
2020) No. % No. % No. %
White, Non-Hispanic 30,723 53.9% 30,005 36.1% 25,117 27.0% -2.3% -16.3% Black or African American, Non-
Hispanic 2,976 5.2% 5,636 6.8% 5,737 6.2% 89.4% 1.8%
American Indian/Alaska Native,
Non-Hispanic 297 0.5% 297 0.4% 310 0.3% --- 4.4%
Asian or Pacific Islander, Non-
Hispanic 4756 8.4% 12,444 15.0% 20,236 21.8% 161.6% 62.6% Other Race/Two or more, Non-
Hispanic 2413 4.2% 3,983 4.8% 5,603 6.0% 65.1% 40.7%
Hispanic or Latino of Any Race 15,765 27.7% 30,557 36.8% 35,997 38.7% 93.8% 17.8% Total Population 56,929 82,922 93,000 12.2%
Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

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2023-2031 Housing Element II-4
Figure II–2: Race and Ethnicity Growth Over Time (2000-2020)

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Figure II–3: Race and Ethnicity in Tracy, San Joaquin County and California (2020)

Source: Bureau of the Census, 2020

White
Black or
African
American
American
Indian/Alaska
Native
Asian or
Pacific Islander
Other
Race/Two or
more
Hispanic
Tracy 27% 6% 0.3% 22% 6% 39%
San Joaquin County 28% 7% 0.4% 18% 5% 42%
California 35% 5% 0.4% 15% 5% 39%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Tracy San Joaquin County California
II. Housing Needs Assessment
City of Tracy
II-5 2023-2031 Housing Element
B. Household Characteristics
The Census defines a “household” as all persons who occupy a housing unit, which may include single persons living alone, families related through marriage or blood, or unrelated persons sharing living quarters. Therefore, the number of households in a community is the same as the number of occupied housing units.

Persons living in retirement or convalescent homes, dormitories, or other group living situations are not considered households. Furthermore, the Census classifies households by type according to the gender of the householder and the presence of relatives. Household characteristics such as size, type, income and tenure reveal important information about the housing needs of a community. Different household sizes, types and income levels often prefer different housing options. Typical household types included in the Census are family households versus non -family households (unrelated persons living together). Family households can include married couples with or without children, single-parent households with children, or other fa mily households such as grandparents with grandchildren, siblings living together, or other extended family members living together. Non - family households are typically unrelated persons living together but also include singles living alone. Average househ old size is estimated based on all persons in all households (including singles), whereas the average family size is based on all related members in family households.

For the purpose of conducting demographic research, the Bureau of the Census defines a f amily as “a householder and one or more people living in the same household who are related to the householder by birth, marriage, or adoption. All people in a household who are related to the householder are regarded as members of his or her family. A family household may contain people not related to the householder.”
For zoning purposes, California court cases have ruled that the following definitions of “family” are invalid: 1) limits the number of persons in a family; 2) specifies how members of the fa mily are related (i.e., by blood, marriage or adoption, etc.), or 3) defines a group of not more than a certain number of unrelated persons as a single housekeeping unit . Court rulings stated that defining a family does not serve any legitimate or useful objective or purpose recognized under the zoning and land planning powers of the jurisdiction, and therefore violates rights of privacy under the California Constitution. A zoning ordinance also cannot regulate residency by discriminating between biological ly related and unrelated persons. Furthermore, a zoning provision cannot regulate or enforce the number of persons constituting a family. Therefore, for the purpose of implementing its zoning regulations, the City amended its Zoning Ordinance to define a f amily as follows: “Family” means one or more persons occupying a single dwelling unit, under no more than one written or oral rental agreement.”
The following discussions focus on the characteristics of households in the City, based on data obtained from the Bureau of the Census, and therefore utilize the Census definitions of households and families. Later in this Housing Element in the Housing Constraints section, the discussions focus on the City’s zoning regulations and therefore, the City’s zoning definition of family is used.

1. Household Type and Size
Household Type
Different household types generally have different housing needs. For example, seniors or young adults usually comprise the majority of single -person households and tend to reside in apartmen t units, condominiums, or smaller single -family homes. Families with children often prefer single - II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-6
family homes. Since 1980, the number of households in Tracy has increased from 6,632 to 27,007 (Table II-5). The largest increase in households occurred between 1980 and 1990. Table II-6 and Figure II–4 show households by type for Tracy, the County and the State. Compared to the County and California, Tracy has a larger share of married-couple households, including those with children (32% versus 25% and 21%, respectively). Tracy has a lower percentage of female-headed households (19%) compared to the County and the State (25% and 26%, respectively). For male -headed households, Tracy and the County have a similar percentage (15%), which is slightly lower than the State (17%).

Table II-5: Tracy Household Growth Over Time (1980-2020) 1980 1990 2000 2010 2020
Total Households 6,632 11,208 17,620 24,331 27,007
Percent Change

69.00% 57.21% 38.09% 11.00%
Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Table II-6: Households By Type
City of Tracy San Joaquin County California
No. % No. % No. %
Total 27,007 231,092 13,103,114
Married-Couple Household 15,844 58.7% 120,149 52.0% 6,510,580 49.7% With Own Children Under 18 Years 8,516 31.5% 56,878 24.6% 2,784,123 21.2% With No Own Children Under 18 Years 7,328 27.1% 63,271 27.4% 3,726,457 28.4% Cohabiting Couple Household 1,897 7.0% 17,527 7.6% 896,192 6.8% With Own Children of the Householder
Under 18 Years
945 3.5% 9,170 4.0% 327,712 2.5%
With No Own Children Of The
Householder Under 18 Years
952 3.5% 8,357 3.6% 568,480 4.3%
Female Householder, No Spouse Or
Partner Present
5,174 19.2% 58,087 25.1% 3,430,426 26.2%
Living Alone 2,152 8.0% 27,015 11.7% 1,722,600 13.1%
With Own Children Under 18 Years 1,252 4.6% 13,427 5.8% 615,734 4.7% With Relatives, No Own Children
Under 18 Years
1,678 6.2% 15,196 6.6% 858,959 6.6%
With Only Nonrelatives Present 92 0.3% 2,449 1.1% 233,133 1.8% Male Householder, No Spouse Or Partner
Present
4,092 15.2% 35,329 15.3% 2,265,916 17.3%
Living Alone 2,199 8.1% 19,588 8.5% 1,392,219 10.6%
With Own Children Under 18 Years 401 1.5% 4,227 1.8% 170,832 1.3% With Relatives, No Own Children
Under 18 Years
1,089 4.0% 8,709 3.8% 414,759 3.2%
With Only Nonrelatives Present 403 1.5% 2,805 1.2% 288,106 2.2% Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

II. Housing Needs Assessment
City of Tracy
II-7 2023-2031 Housing Element
Figure II–4: Households By Type (2020)

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Household Size
Household size can determine the type and size of housing that is needed in a community. Tracy has a higher percentage of family households (79%) compared to the County (75%) and State (69%) (Table II-7). These family households also tend to be larger (3 or more persons).

Table II-7: Households By Size in Tracy
City of Tracy San Joaquin County California
No. % No. % No. %
Total: 27,007 231,092 13,103,114
Family Households: 21,421 79.3% 172,583 74.7% 8,986,666 68.6% 2-Person Household 5,315 19.7% 54,201 23.5% 3,209,170 24.5% 3-Person Household 4,840 17.9% 36,681 15.9% 2,054,635 15.7% 4-Person Household 5,671 21.0% 36,634 15.9% 1,945,127 14.8% 5-Person Household 3,287 12.2% 25,068 10.8% 1,006,126 7.7% 6-Person Household 1,554 5.8% 10,727 4.6% 433,324 3.3%
7-Or-More Person Household 754 2.8% 9,272 4.0% 338,284 2.6% Nonfamily Households: 5,586 20.7% 58,509 25.3% 4,116,448 31.4% 1-Person Household 4,351 16.1% 46,603 20.2% 3,114,819 23.8% 2-Person Household 760 2.8% 9,598 4.2% 774,224 5.9%
3-Person Household 309 1.1% 1,601 0.7% 135,683 1.0%
4-Person Household 144 0.5% 453 0.2% 59,938 0.5%
5-Person Household 0 0.0% 137 0.1% 19,730 0.2%
6-Person Household 0 0.0% 72 0.0% 6,805 0.1%
7-Or-More Person Household 22 0.1% 45 0.0% 5,249 0.0%
Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-8
The larger family households in Tracy are reflected in higher average household size than the County or State (Table II-8). Figure II–5 shows that the average household size in Tracy was roughly the same in 2010 and 2020 (3.36 and 3.38).

Table II-8: Average Household Size in Tracy, San Joaquin County and California City of Tracy San Joaquin County California
Total: 3.38 3.18 2.94
Owner Occupied 3.38 3.18 3.01
Renter Occupied 3.37 3.17 2.85
Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Figure II–5: Average Household Size Over Time (2010 to 2020)

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

2. Household Income
Household income indicates the wealth of a community and therefore is directly connected to the ability to afford housing. Median household income compared to neighboring communities provides a way to measure income in Tracy against other cities.

Figure II–6 shows that, in 2020, households in the County of San Joaquin had a significantly lower median income ($ 68,628) than surrounding counties and is lower than the State’s ($78,672) .

However, residents of the County also had a much lower cost of living. In general, though, Tr acy’s median household income ($ 95,741) is more comparable to the nearby counties of Alameda and Contra Costa than its own County. The City’s median household income was 40 percent higher than that of San Joaquin County. The counties of Santa Clara and San Mateo have the highest median incomes of the region.

Median household income provides only partial insight into a community’s income profile. A more detailed breakdown of households by income category can provide more information about the proportion of households in Tracy whose limited incomes may lead them to have a higher incidence of housing problems such as overpayment (paying more than 30 percent of income on housing) or overcrowding (having more than one person per room).

II. Housing Needs Assessment
City of Tracy
II-9 2023-2031 Housing Element
Figure II–6: Median Household Income (2020)

Sources: Bureau of the Census, American Community Survey, 2016-2020, Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Figure II–7 shows that all racial and ethnic groups in Tracy had higher median incomes than in the County or California, except for Native Hawaiian and other Pacific Islanders, whose median income was slightly lower than the County’s. In Tracy, residents with the highest median incomes were Black/African American residents ($117,112) and Asian residents ($116,137). Residents with the lowest median income s were American Indian and Alaska Native ($71,146) and Some Other Race Alone ($81,412).

Figure II–7: Median Household Income By Race and Ethnicity (2020)

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-10

According to ACS data, between 2016 and 20 20, approximately 65 percent of Tracy households earned annual incomes of $75,000 or more ( Table II-9). By comparison, household incomes in San Joaquin County were more evenly distributed throughout the various income levels —with a significantly higher proportion of households earning less th an $50,000 annually and a noticeably lower proportion of households earning more than $100,000.

Table II-9: Household Income Distribution (2020)
Household Income
Tracy County
Number % Number %
Less than $10,000 671 2.5% 11,552 5.0%
$10,000 to $14,999 365 1.4% 8,566 3.7%
$15,000 to $24,999 1,290 4.8% 18,491 8.1%
$25,000 to $34,999 1,142 4.2% 19,329 8.4%
$35,000 to $49,999 1,986 7.4% 25,469 11.0%
$50,000 to $74,999 4,063 15.0% 41,248 17.8%
$75,000 to $99,999 4,754 17.6% 30,072 13.0%
$100,000 or more 12,736 47.2% 76,365 33.0%
Total 27,007 100.00% 231,092 100.00%
Note: The 2016-2020 American Community Survey estimates measure household income in the past 12 months (in 2020 inflation-adjusted dollars).

Source: Bureau of the Census, American Community Survey, 2016-2020.

To facilitate the analysis of income distribution among households in communities, the State Department of Housing and Community Development (HCD) groups hous eholds into categories by income. Income categories are determined as a percentage of the Area Median Income (AMI) and then adjusted for household size in the following manner:
• Extremely Low Income – 0 to 30 percent AMI
• Very Low Income – 31 to 50 percent of the AMI
• Low Income – 51 to 80 percent of the AMI
• Moderate Income – 81 to 120 percent of the AMI
• Above Moderate Income – above 120 percent of the AMI
Based on the HCD income categories described above, in 201 9, approximately 75 percent of Tracy households earned median, moderate or above moderate incomes, while 2 5 percent of households can be classified as extremely low, very low, and low income households (Table II-10).1

1 Data was obtained from the Comprehensive Housing Affordability Strategy (CHAS) prepared for HUD by the Census Bureau using 2015-2019 ACS data. CHAS data does not provide a breakdown of household income for those with more than 80% AMI, because those households are not qualified for federal housing programs.

II. Housing Needs Assessment
City of Tracy
II-11 2023-2031 Housing Element
Table II-10: Households by Income Category (2019)
Income Category (% of County AMI Households Percent
Extremely Low (30% or less) 1,615 6.2%
Very Low (31 to 50%) 1,705 6.6%
Low (51 to 80%) 3,270 12.6%
Median (81 to 100%) 2,350 9.1%
Moderate and Above (>100%) 16,910 65.4%
Total 25,850 100.0%
Source: Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS), based on the 2015- 2019 American Community Survey.

C. Employment Market
Employment has an important impact on housing needs. Incomes associated with different jobs and the number of workers in a household determine the type and size of housing a household can afford. In some cases, the types of jobs themselves can affect housing needs and demand (such as in communities with military installations, college campuses, and large amounts of seasonal agriculture). Employment growth typically leads to strong housing demand, while the reverse is true when employment contracts.

1. Employment
Tracy’s workforce grew from 35,433 in 2010 to 45,000 in 2020 (Table II-11). The largest employment sector for Tracy residents is the education/health/social service industry (19% of the workforce), followed by retail (13%), professional/scientific/management/admini strative (12%) and manufacturing (12%). While jobs in most of these industries are typically associated with moderate incomes, retail jobs tend to offer lower wages.

Table II-11: Employment Profile
Industry
2006-2010 2016-2020
# % # %
Agriculture, Forestry, Fishing and Hunting, and Mining 430 1.20% 370 0.80% Construction 3,346 9.40% 4,341 9.60%
Manufacturing 4,755 13.40% 5,227 11.60%
Wholesale Trade 1,176 3.30% 1,378 3.10%
Retail Trade 4,785 13.50% 6,032 13.40%
Transportation and Warehousing, and Utilities 2,295 6.50% 3,752 8.30% Information 1,236 3.50% 1,046 2.30%
Finance, Insurance, Real Estate 2,376 6.70% 2,225 4.90% Professional, Scientific, Management, Administrative 4,227 11.90% 5,442 12.10% Educational, Health and Social Services 5,106 14.40% 8,355 18.60% Arts, Entertainment, Recreation, Accommodation &
Food Services
2,581 7.30% 3,547 7.90%
Other Services 1412 4.00% 1,680 3.70%
Public Administration 1,708 4.80% 1,605 3.60%
Total 35,433 100.00% 45,000 100.00%
Sources: Bureau of the Census, American Community Survey, (2006-2010 and 2016-2020).

Figure II–8 shows employment by occupation for Tracy, the County , and California in 2020. Tracy has a higher percentage of residents working in sales and office occupations than the County or the State and fewer working in service occupations.

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-12
Figure II–8: Total Employment by Occupation in Tracy, San Joaquin County and California

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Table II-12 lists the top ten employers in Tracy according to the City’ s Annual Comprehensive Financial Report in 2022. Top employers in Tracy have changed significantly in recent years, and the top four employers are all new to the City. New distribution and shipping uses, including three Amazon facilities, have replaced food processing facilities (Taylor Farms and Leprino Foods) as the top employers. This trend does not represent a loss in the number of employees at other City employers, but rather the coming of large scale, 24/7 distribution centers that require significant numbers of employees. For example, the top employing Amazon facility employs 4,332 workers. In contrast, Taylor Farms employed 459 workers as the top employer in 2009. This growth in large employers may indicate a need for additional workforce housing in Tracy. Not shown in Table II-12 is that the City of Tracy and Tracy Unified School District (TUSD)are also among the top employers in the City. In 2022, the City of Tracy employed 645 full-time and part-time employees while TUSD had an estimated 1,738 employees.

Table II-12: Major Employers (2022)
Firm Industry Employees
Rank in
2022
Rank in
2009
Amazon.com Services LLC Distribution/Shipping 4,332 1 - FedEx Ground Package System, Inc Distribution/Shipping 1,607 2 - Amazon.com Services LLC Distribution/Shipping 1,297 3 - Amazon.com Services LLC Distribution/Shipping 1,043 4 - Taylor Farms Pacific Food Processor 748 5 1
Home Depot Retail (Home Improvement) 700 6 9
Medline Industries Medical Supply Manufacturer 668 7 -
Walmart Retail 410 8 10
Leprino Foods Food Processor 341 9 2
DHL Supply Chain Distribution/Shipping 226 10 -
Source: City of Tracy, Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2022.

Housing development in the City is also meeting the needs of many Bay Area employees who are themselves priced out of ownership in the areas where they work. Since local residents employed in Tracy tend to have lower wages, a housing market dictated by persons commuting to Bay Area jobs and their willingness (and ability) to pay presents difficulties in meeting the housing needs of people

II. Housing Needs Assessment
City of Tracy
II-13 2023-2031 Housing Element
who live and/or work in Tracy. Table II-13 displays mean annual wage data for occupations compiled by the California Employment Development Department (EDD) for the Stockton Metropolitan Statistical Area. Table II-13 shows farming, food preparation and serving, personal care and service, maintenance, and health care support occupations offer the lowest wages in the region.

Table II-13: Mean Salary By Occupation (2022 1st Quarter) Stockton MSA, San Joaquin County Occupation Mean Annual Salary
Management $115,955
Healthcare Practitioners and Technical $114,974
Legal $113,928
Architecture and Engineering $94,173
Computer and Mathematical $86,072
Business and Financial $72,949
Life, Physical and Social Sciences $70,298
Community and Social Services $66,514
Protective Service $63,946
Construction and Extraction $57,269
Installation, Maintenance and Repair $52,255
Arts, Design, Entertainment, Sports and Media $49,809
Transportation and Material Moving $40,823
Office and Administrative Support $38,641
Production $37,748
Sales $36,930
Healthcare Support $33,509
Building and Grounds Cleaning and Maintenance $29,756
Personal Care and Service $26,197
Food Preparation and Serving $22,378
Farming, Fishing and Forestry $21,484
Source: California Employment Development Division, Occupational Employment and Wage Statistics

2. Commuting Patterns
Commuting patterns demonstrate the relationship between housing to employment opportunities.

The lack of a geographic match between employment centers and housing leads to traffic congestion, air quality deterioration, increased transportation infrastructure needs, and many other adverse environmental and economic problems. Developing housing, particularly near employment centers, can help reduce the occurrence of these environmental and economic problems and place people in closer proximity to the services they need. The availability of housing generally encourages a healthy economy, and could support downtown revitalization efforts.

According to ACS data, between 2016-2020, 54 percent of Tracy’s workforce travel ed to another county for employment. This rate is significantly higher than San Joaquin County (29 percent) and the highest among surrounding counties ( Table II-14). The proportion of long distance commuters in Tracy remained almost the same between 2010 and 2020, with only a one percent decrease in the ten year period.

Table II-14: Place of Work
Place of Work
Alameda
Co.

Contra
Costa Co.

San Joaquin
Co.

San Mateo
Co.

Santa
Clara Co. Tracy
Outside of County of Residence (2010) 32% 40% 26% 41% 13% 55% Outside of County of Residence (2020) 35% 41% 29% 40% 13% 54% Change in Proportion (2010-2020) 3% 1% 3% -1% 0% -1%
Source: American Community Survey, 2006-2010 and 2016-2020 II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-14

The high rate of residents working in other counties corresponds with longer commute times for Tracy residents compared to the rest of the County. Figure II–9 summarizes commute times for workers age 16 and over in Tracy and San Joaquin County, according to 2016-2020 ACS data.

Approximately 22 percent of employed Tracy residents had travel times to work of less than 15 minutes compared to 25 percent of workers living elsewhere in San Joaquin County and 22 percent of California residents . Regarding longer commutes , approximately 36 percent of employed Tracy residents had commutes of 60 minutes or longer, compared to 2 2 percent of employed San Joaquin County residents and 13 percent of employed residents throughout California.

Figure II–9: Travel Time to Work For Tracy, San Joaquin County and California (2020)

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Commute times of an hour or more have increased for Tracy residents over the last decade, whi le shorter commute times have either decreased or stayed about the same (Figure II–10).

Figure II–10: Travel Time to Work Over Time (2020)

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

II. Housing Needs Assessment
City of Tracy
II-15 2023-2031 Housing Element

The vast majority of Tracy residents (90%) drove alone to work between 2016 and 2020 (Table II-15).

A similar proportion of County (91%) and State (82%) residents also drove to work alone during this time period. While a higher percentage of Tracy residents carpooled compared to the County and State, a lower percentage took public transportation to work.

Table II-15: Means of Transportation to Work
City of Tracy San Joaquin County California
Total 43,150 307,317 18,239,892
Car, Truck, Or Van 38,662 89.6% 278,963 90.8% 14,963,132 82.0% Drove Alone 32,561 75.5% 241,465 78.6% 13,146,038 72.1% Carpooled 6,101 14.1% 37,498 12.2% 1,817,094 10.0%
In 2-Person Carpool 4,682 10.9% 26,146 8.5% 1,325,863 7.3% In 3-Person Carpool 1,060 2.5% 6,428 2.1% 284,797 1.6%
In 4-Person Carpool 231 0.5% 2,830 0.9% 111,224 0.6%
In 5- Or 6-Person Carpool 14 0.0% 1,426 0.5% 60,986 0.3% In 7-Or-More-Person Carpool 114 0.3% 668 0.2% 34,224 0.2% Public Transportation (Excluding Taxi) 939 2.2% 5,006 1.6% 843,498 4.6% Bus 121 0.3% 2,102 0.7% 525,023 2.9%
Subway Or Elevated Rail 189 0.4% 878 0.3% 198,976 1.1%
Long-Distance Train Or Commuter Rail 619 1.4% 1,859 0.6% 77,897 0.4% Light Rail, Streetcar Or Trolley 10 0.0% 167 0.1% 29,447 0.2% Ferryboat 0 0.0% 0 0.0% 12,155 0.1%
Taxicab 16 0.0% 250 0.1% 36,638 0.2%
Motorcycle 145 0.3% 658 0.2% 52,947 0.3%
Bicycle 89 0.2% 906 0.3% 153,669 0.8%
Walked 532 1.2% 4,050 1.3% 461,980 2.5%
Bicycle or Walked 621 1.4% 4,956 1.6% 615,649 3.3%
Other Means 130 0.3% 1,574 0.5% 198,331 1.1%
Other Means (+Taxi and Motorcycle) 291 0.7% 2,482 0.8% 287,916 1.6% Worked From Home 2,637 6.1% 15,910 5.2% 1,529,697 8.4%
Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

The San Joaquin Council of Governments (SJCOG) adopted 2022 Regional Transportation Plan/ Sustainable Communities Strategy includes a variety of transportation projects (highways, interchanges, regional roadways, transit) throughout the County, including Tracy, through the year 2046. The Plan’s balanc ed multimodal development approach includes over $12 billion in investments.

D. Housing Problems
The Comprehensive Housing Affordability Strategy (CHAS) developed by the Census for HUD provides detailed information on housing needs by income level for differ ent types of households in Tracy. Detailed CHAS data based on the 2015-2019 ACS is displayed in Table II-16. Housing problems considered by CHAS include:
• Units with physical defects (lacking complete kitchen or bathroom); • Overcrowded conditions (housing units with more than one person per room); • Housing cost burden, including utilities, exceeding 30 percent of gross income; or • Severe housing cost burden, including utilities, exceeding 50 percent of gross income.

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-16
Table II-16: Housing Assistance Needs of Lower Income Households (2019)

Renter-Occupied Owner-Occupied
Total
Households
Elderly
Household
Small
Household
Large
Household Total
Elderly
Household
Small
Household
Large
Household Total
Extremely Low Income (<30% MFI) 230 270 180 815 330 305 70 800 1,615 With any housing problem 60.9% 98.1% 77.8% 77.3% 78.8% 85.2% 71.4% 78.8% 78.0% Cost burden >30% 50.0% 97.8% 77.8% 77.3% 78.8% 85.2% 71.4% 79.4% 78.3% Cost burden >50% 34.8% 96.3% 77.8% 73.6% 62.1% 80.3% 71.4% 68.1% 70.9% Very Low Income (30-50% MFI) 240 220 315 1,025 310 205 105 680 1,705 With any housing problem 56.3% 97.7% 98.4% 85.9% 80.6% 80.5% 100.0% 84.6% 85.3% Cost burden >30% 56.3% 97.7% 63.5% 74.6% 64.5% 80.5% 85.7% 82.4% 77.7% Cost burden >50% 37.5% 59.1% 11.1% 41.0% 38.7% 75.6% 52.4% 65.4% 50.7% Low Income (50-80% MFI) 115 880 550 1,780 465 605 300 1,490 3,270 With any housing problem 78.3% 76.1% 87.3% 81.7% 60.2% 60.3% 95.0% 68.5% 75.7% Cost burden >30% 73.9% 76.1% 70.9% 76.7% 60.2% 55.4% 73.3% 61.4% 69.7% Cost burden >50% 39.1% 26.1% 29.1% 31.5% 24.7% 36.4% 30.0% 31.9% 31.7% Moderate and Above Moderate
Income (>80% MFI)
375 3,690 1,095 6,000 2,065 7,470 2,500 13,260 19,260
With any housing problem 28.0% 28.5% 30.1% 28.8% 25.2% 19.0% 27.0% 21.4% 23.7% Cost burden >30% 24.0% 24.1% 7.7% 21.7% 24.0% 18.2% 19.0% 19.3% 20.0% Cost burden >50% 2.7% 0.7% 0.0% 0.8% 7.5% 1.9% 2.0% 2.8% 2.1% All Households 960 5,060 2,140 9,630 3,170 8,585 2,975 16,225 25,855 With any housing problem 49.0% 43.5% 58.9% 48.7% 41.3% 25.7% 37.5% 31.2% 37.7% Cost burden >30% 44.3% 40.3% 38.0% 42.2% 39.0% 24.7% 28.1% 28.8% 33.7% Cost burden >50% 23.4% 12.7% 15.7% 16.9% 18.8% 8.9% 8.2% 11.3% 13.4% Note: Data presented in this table are based on special tabulations from sample Census data. The number of households in each category usually deviates slightly from the 100% total due to the need to extrapolate sample data out to total households. Interpretations of these data should focus on the proportion of households in need of assistance rather than on precise numbers.

Source: HUD Comprehensive Housing Affordability Strategy (CHAS), (based on the 2015-2019 American Community Survey).

II. Housing Needs Assessment
City of Tracy
II-17 2023-2031 Housing Element
The types of problems experienced by households in Tracy vary according to household income, type, and tenure; however, general trends include:
• Renter-households are more likely to exp erience housing problems ( 49%) than owner - households (38%).
• Large renter -families were more likely to experience housing problems than all other household types (59%).
• Lower income households were significantly more likely than households of other income levels to experience housing problems. Approximately 78 percent of extremely low income households, 85 percent of very low income households and 76 percent of low income households experience one or more housing problems in Tracy.

1. Overpayment (Cost Burden)
A household is considered to be overpaying for housing (or cost burdened) if it spends more than 30 percent of its gross household income on housing. Problems of overpayment occur when housing costs rise faster than incomes or when households are forced t o pay more than they can afford for housing of adequate size, condition, and amenities to meet their needs. The prevalence of overpayment varies significantly by income, tenure, household type, and household size.

Figure II–11 and Figure II–12 show trends in cost burdened owner -occupied and renter -occupied households over time. Not surprisingly, the greatest increases in cost burdened households for both homeowners and renters occu rred between 2000 and 2010. The percentage of cost burdened households has decreased since 2010.

Figure II–11: Total and Percent Change Cost Burdened Owner Households Over Time (1980-2020)

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-18
Figure II–12: Total and Percent Change Cost Burdened Renter Households Over Time (1980-2020)

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

While Figure II–11 and Figure II–12 show the greatest percentage change in the number of cost - burdened owners and renters occurring between 2000 and 2010, the changes in the proportion cost- burdened households had different trends. Table II-17 below shows the change in the percent of cost-burdened households by tenure over time from 1980 to 2020 in Tracy and the San Joaquin Valley Region. For owner -households, the greatest increase occurred between 2000 and 2010, when the percent of cost -burdened households increased from 21.4 percent to 41.6 percent. The percent of cost-burdened owner households decreased to 22 percent in 2020. For renter -households, the greatest increase in the proportion of cost -burdened households occurred between 1980 and 1990 when the percent of cost -burdened renter s increased from 9.9 percent to almost 30 percent. The percent of cost-bordered renters continued to increase through 2010 and decreased in the last decade back to 30 percent.

When compared to the San Joaquin Valley Region, the percent of cost-burdened households in Tracy tend to be lower. As of 2020, 22 percent of owner households are cost burdened, compared to 28 percent of owner households in the Region. Similarly, 30 percent of renter households are cost burdened in the City of Tracy, compared to 51 percent of the region’s renter households.

Table II-17: Cost-Burdened Owner and Renter Households Over Time - Tracy vs. Region 1980 1990 2000 2010 2020
% Cost Burdened Owner HH

City of Tracy 7.6% 20.1% 21.4% 41.6% 22.0%
% Change -- +12.5% +1.3% +20.1% -19.6%
SJV Region 12.1% 22.3% 28.3% 39.3% 27.6%
% Change – +10.2% +6.0% +10.9% -11.6%
% Cost Burdened Renter HH

City of Tracy 9.9% 28.7% 27.8% 37.5% 30.0%
% Change – +18.8% -0.9% +9.7% -7.5%
SJV Region 30.1% 43.2% 42.5% 51.0% 51.1%
% Change – +13.1% -0.7% 8.5% 0.1%
Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

II. Housing Needs Assessment
City of Tracy
II-19 2023-2031 Housing Element
As shown in Table II-16, CHAS tabulations (based on ACS data) reported that 34 percent of Tracy households (8,713 households) overpaid for housing between 2015 and 2019. Housing cost burden typically varies by income level, tenure, household type, and household size . More than 70 percent of lower income households face cost burden compared to 20 percent of moderate a nd above - moderate income households. In Tracy, renters face greater rates of cost burden compared to home owners (42% versus 34%).

Severe cost burden occurs when a household spends more than 50 percent of its gross household income on housing. While only 13 percent of Tracy’s households face severe cost burden, it disproportionately impacts households with lower incomes. Over 70 percent of extremely low income households and half of very low income households spend more than 50 percent of their income on housing.

2. Overcrowding
Overcrowding is typically defined as a housing unit occupied by more than one person per room.

Severe overcrowding occurs when there are more than 1.51 persons per room. Overcrowding typically occurs when there are not enough adequately sized units within a community, when high housing costs relative to income force too many individuals to share a housing unit than it can adequately accommodate, or when families reside in smaller units than they need to devote income to other necessities, such as food and health care. Overcrowding tends to accelerate the deterioration of housing. Therefore, maintaining a reasonable level of occupancy and alleviating overcrowding are critical to enhancing quality of life.

According to the 2016-2020 ACS, approximately six percent of housing units in the City (1,733 units) were overcrowded (Table II-18). Overcrowding disproportionately affected renters (11.5% versus 3%), indicating overcrowding may be the result of an inadequate supply of larger sized rental units.

While 78 percent of occupied housing units in the City had three or more bedrooms (the minimum size considered large enough to avoid most ove rcrowding issues for large households), only about a quarter of these units (26%) were occupied by renters. While severe overcrowding (more than 1.51 persons per room) impacts less than 3 percent of households in Tracy, it does impact a greater percentage of renters than homeowners (5% versus 1%).

Table II-18: Overcrowding
Occupants per Room
Owner Occupied Renter Occupied Total
# % # % # %
0 To 1 Occupants per Room 16,138 96.73% 9,136 88.50% 25,274 93.58%

1.01 To 1.50 Occupants per Room 388 2.33% 639 6.19% 1,027 3.80%

1.51 To 2.00 Occupants per Room 143 0.86% 484 4.69% 627 2.32%

2.01 Or More Occupants per Room 15 0.09% 64 0.62% 79 0.29% Overcrowded Units 546 3.27% 1,187 11.50% 1,733 6.42%
Total Housing Units 16,684 100.00% 10,323 100.00% 27,007 100.00% Source: American Community Survey, 2016-2020

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-20
E. Special Housing Needs
Certain groups have greater difficulty finding decent, affordable housing due to special needs and/or circumstances. Special circumstances may be related to one’s employment and income, family characteristics, disability, and household characteristics, among other factors. Consequently, some residents in Tracy may experience a higher prevalence of housing overpayment, over - crowding, or other housing problems.
“Special needs” groups include the following: seniors, persons wit h disabilities, large households, single-parent households, farmworkers, persons living in poverty, and the homeless ( Table II-19).

This section provides a detailed discussion of the housing needs facing each particular group as well as programs and services available to address their housing needs.

Table II-19: Special Needs Groups

Number of
Persons
% of Tracy
Population
Number of
Households
% of Tracy
Households
Seniors 8,438 9.2% – –
With a disability 3,162 3.4% – –
Households

4055 15%
Senior living alone

1,350 4.9%
Persons with Disabilities 7,918 8.7% – –
Female-Headed Households, No Spouse

5,174 19.2%
With own children

1,252 4.6%
Living Alone 2,152 8.0%
Male Headed Households, No Spouse 4,092 15.2%
With own children 401 1.5%
Living alone 2,199 8.1%
Large Households

5,617 20.8%
Renter

2,272 8.4%
Owner

3,345 12.3%
Households Living in Poverty

1,405 6.6%
Agricultural Workers 328 0.36%

Homeless 124 0.14%

Total Population/Households 91,462

27,007

Sources: American Community Survey (ACS), 2016-2020; Homeless data from the San Joaquin Continuum of Care 2022 Point-in-Time Count.

1. Seniors
Seniors face unique housing circumstances because of three factors: a limited or fixed income; health care costs; and disabil ities. Specifically, people aged 65 years and older often have four main concerns:
• Housing: Many seniors live alone and may have difficulty maintaining their homes. • Income: People aged 65 and over are usually retired and living on a limited income. • Health care: Seniors are more likely to have high health care costs. • Transportation: Many of the elderly rely on public transportation; especially those with disabilities.

According to the ACS data, approximately 8,438 seniors (about 9% of the total population) lived in Tracy in 2020. In addition, there were 4 ,055 senior households. Approximately 1,350 seniors were living alone and 3,162 seniors have a disability.

Table II-20 shows the number of senior households by tenure between 2010 and 2020 in Tracy, the County and California. The percentage of owner occupied senior households increased from 69 II. Housing Needs Assessment
City of Tracy
II-21 2023-2031 Housing Element
percent in 2010 to 77 percent in 2020. Tracy has a higher percentage of senior owner occupied households than the County and the State.

Table II-20: Senior Households by Tenure Over Time

Renter-
Occupied
Owner
Occupied
Renter-
Occupied
Owner
Occupied
Renter-
Occupied
Owner
Occupied
2010 2010 2015 2015 2020 2020
City of Tracy 804 1,821 777 2,271 938 3,117

30.6% 69.4% 25.5% 74.5% 23.1% 76.9%
San Joaquin County 9,508 28,610 11,300 33,395 13,300 38,627

24.9% 75.1% 25.3% 74.7% 25.6% 74.4%
California 605,590 1,764,836 737,696 2,005,660 858,161 2,340,689

25.5% 74.5% 26.9% 73.1% 26.8% 73.2%
Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

According to the CHAS data, more than 60 percent of senior renter households and 35 percent of senior owner households are lower income. Cost burden impacts senior households at a greater rate than households overall in Tracy (Table II-16). Approximately 44 percent of senior renter households and 39 percent of senior owner households face cost burden issues.

Senior homeowners, particularly elderly wome n, may require assistance in performing regular home maintenance or repair activities due to physical limitations or disabilities. These in -home needs and other senior needs can be met through a range of services, including congregate care, rent subsidies, shared housing programs, and housing rehabilitation assistance. For the frail or disabled elderly, housing with architectural design features that accommodate disabilities can ensure continued independent living. Those with a mobility or self -care limitation may require transportation alternatives or shared housing options.

Resources Available
The City recognizes the extensive housing needs of seniors in the community. There are currently two affordable senior housing complexes in the City of Tracy—Tracy Garden Apartments and Tracy Place Senior Apartments. In addition, the City contracts with the San Joaquin County Housing Authority to provide Housing Choice Vouchers to very low income households. The City also facilitates housing options for seniors through residential care facilities. As of November 2022, a total of four small residential care facilities (with a total capacity of 24 beds) were located in the City in addition to the 77-bed Astoria Gardens and 180-bed Brookdale Tracy facilities for the elderly.

In addition, the City operates the Lolly Hansen Senior Center, which offers a wide variety of classes, activities, special events and services, to benefit its senior residents. The Center’s programs include:
• Senior Link: Specialist provides assistance with access to information, local agencies and service providers.
• Lunch Program: Home delivered hot meals available to homebound and/or temporarily ill persons.
• Paralegal Services: Paralegal service is provided free of charge by the El Concilio organization. • Brown Bag: Delivers bags of supplemental groceries to low-income senior citizens throughout San Joaquin County provided by Second Harvest Food Bank.

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-22
• TRACER: The City provides a Fixed Route bus service via the TRACER that connects residents, including seniors, to amenities throughout the City. The City also provides an on- demand bus service (TracerPlus), and a paratransit service which is a door to door service available for ADA/Medicare passengers aged 65 and older.

2. Persons with Disabilities
In Tracy and elsewhere, persons with disabilities have a wide range of different housing needs, which vary depending on the type and severity of the disability as well as personal preference and lifestyle. Physical, mental, and/or developmental disabilities may prevent a person from working, restrict one’s mobility, or make it difficult to care for oneself. “Barrier -free design” housing, accessibility modifications, proximity to services and transit, and group living opportunities represent some of the types of considerations and accommodations that are important in serving this group. Also, some residents suffer from disabilities that require living in a supportive or institutional setting.

According to the 2016-2020 ACS, approximately 9 percent of Tracy residents ( 7,918 persons) over 5 years of age had a disability. Figure II–13 shows the percentage of the total population with a disability in Tracy, the County and California.

The ACS tallied the number of disabilities by type for residents with one or more disabilities. Among the disabilities tallied, ambulatory (4 6%) and cognitive (3 9%) difficulties were the most common (Table II-21). However, the prevalence of certain disabilities does vary by age. For example, cognitive difficulties accounted for 74 percent of disabilities tallied among 5 to 17 year olds, while 65 percent of disabilities tallied among seniors were ambulatory difficulties.

Figure II–13: Disabilities for the Total Population in Tracy, San Joaquin County and California

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

II. Housing Needs Assessment
City of Tracy
II-23 2023-2031 Housing Element
Table II-21: Disabilities Tallied by Age and Type
Type of Disability
Percent of Disabilities Tallied
5 to 17 18 to 64 65+ Total
With a hearing difficulty 11.8% 17.3% 42.3% 27.3%
With a vision difficulty 25.1% 16.4% 15.0% 16.6%
With a cognitive difficulty 74.3% 41.1% 28.1% 38.9%
With an ambulatory difficulty 7.4% 38.5% 65.1% 45.8%
With a self-care difficulty 16.3% 17.5% 24.6% 20.1%
With an independent living difficulty --- 34.5% 45.7% 35.3% Total Persons with Disabilities 785 3,919 3,162 7,918
Notes:

1. Persons under 5 years of age are not included in this table.

2. Persons may have multiple disabilities.

Source: Bureau of the Census, American Community Survey, 2016-2020.

Senate Bill 812, which took effect January 2011, requires housing elements to include an analysis of the special housing needs of the developmentally disabled in accordance with Government Code Section 65583(e). Developmental disabilities are defined as severe, chronic, and attributed to a mental or physical impairment that begins before a person turns 18 years old. This can include Down’s Syndrome, autism, epilepsy, cerebral palsy, and mild to se verely impaired intellectual and adaptive functioning. Some people with developmental disabilities are unable to work, rely on Supplemental Security Income, and/or live with family members. In addition to their specific housing needs, they are at increased risk of housing insecurity after an aging parent or family member is no longer able to care for them.

The California Department of Developmental Services is responsible for overseeing the coordination and delivery of services to more than 330,000 Californians with developmental disabilities. The State has 21 regional centers that provides point of entry to services for people with developmental disabilities. Residents of Tracy utilize t he Valley Mountain Regional Center (VMRC) located in Stockton. The VMR C provides services for persons with developmental disabilities in Amador, Calaveras, San Joaquin, Stanislaus, and Tuolumne counties.

The following information from the State Department of Developmental Services (DDS) provides a closer look at the disabled population. Data shown in Table II-22 estimates the number of individuals with developmental disabilities that used Regional Center services in the quarter ending in December 2021. Most persons (96%) experiencing a developmental disability reside in the home of a parent, family, or guardian.

Table II-22: Persons with Developmental Disabilities by Age City of Tracy San Joaquin County State
0-17 years 632 5,405 192,384
18+ years 359 3,953 185,353
Total Population 991 9,358 377,737
Source: California Department of Developmental Services Quarterly Consumer Report, December 2021

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-24
Resources Available
Housing options for persons with disabilities also include community care facilities. As of November 2022, the City of Tracy currently has:
• Ten Small Adult Residential Care facilities – 55 beds total • One Adult Day Care facility – 60 clients
In addition, VMRC is a private, non-profit corporation that contracts with the State of California to provide diagnostic, evaluation, case management, and early intervention services to people with developmental disabilities. VMRC purchases services such as respite, out-of-home placement, adult day programs, transportation, behavior intervention, infant development services, clinical, and diagnostic services for people with developmental disabilities.

3. Large Households
Large households are defined as those con sisting of five or more members. These households comprise a special need group because of the often limited supply of adequately sized and affordable housing units in a community. To save for other basic necessities such as food, clothing and medical care, it is common for lower income large households to reside in smaller units, which frequently results in overcrowding.

In 2020, approximately 21 percent of total households in Tracy were considered large households (Table II-19). Of these large households, approximately 6 0 percent owned the uni ts they occupied, and 40 percent rented. Finding large rental units (with three or more bedrooms) is a common problem for large families, particularly large renter households earning lower incomes. Figure II–14 compares large households in Tracy, the County and the State. Tracy has a higher percentage of 5 - and 6-person households compared to the County and State and has a similar percentage of 7-person households to California.

Figure II–14: Large Households in Tracy, San Joaquin County and California (2020)

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

II. Housing Needs Assessment
City of Tracy
II-25 2023-2031 Housing Element
According to the 2016-2020 ACS, while 78 percent of the 27,007 occupied housing units in the City had three or more bedrooms only about a quarter of these units (26 %) were occupied by renters.

Additionally, the CHAS data based on the 201 5-2019 ACS showed that 71 percent of low -income large renter households and 73 percent of low-income large owner households were cost burdened (Table II-16).

As shown in Table II-16, large renter-families were more likely to experience housing problems than all other household types (59%).

Resources Available
The Section 8 Housing Choice Voucher program extends assistance to large households with overcrowding and cost burden issues. Homebuyer assistance and housing rehabilitation programs can also benefit large households with lower and moderate incomes.

4. Single-Parent Households
Single-parent families, particularly female -headed families with children, often require special consideration and assistance because of their greater need for affordable housing and accessible day care, health care, and other supportive services. Female -headed families with children are considered a vulnerable group because they must balance the needs of their children with work responsibilities, often while earning limited incomes.

The 2016-2020 ACS showed that over 1,600 hous eholds in Tracy were single-parent households (those with own children under the age of 18). Of these households, 1,252 were female-headed and 401 were male-headed households) (Table II-19). Female-headed households, and particularly those with children, often have a higher incidence of poverty when compared to other household types.

Table II-23 shows the percentage of female -headed households with children living below the poverty line. Tracy’s percentage is lower than the County and State (20% versus 26% and 22%, respectively). Female-headed households need affordable housing in areas with access to transit networks, schools and parks, and daily services.

Table II-23: Female-Headed Households with Children by Poverty Status in Tracy, San Joaquin County, and California

City of
Tracy Percent
San Joaquin
County Percent California Percent
Below Poverty Line 727 19.9% 8,916 25.6% 364,236 21.5%
Above Poverty Line 2,928 80.1% 25,869 74.4% 1,329,038 78.5% Total 3,655 – 34,785 – 1,693,274 –
Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Resources Available
The City offers a number of housing programs and supportive services for lower and moderate income households in general that can also benefit female-headed households.

5. Farmworkers
Farmworkers are tr aditionally defined as persons whose primary incomes are earned through seasonal agricultural labor. They have special housing needs because of their relatively low income and the transient, seasonal nature of their job. The United States Department of Agriculture (USDA) II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-26
Agricultural Census counted over 1,700 farms with more than 19,000 farm workers in San Joaquin County in 2017. 2 In terms of the number of days worked, the Agricultural Census found that 40 percent of the farm laborers worked 150 days or more, while 60 percent worked 150 days or less.

The 2016-2020 ACS found that 328 Tracy residents were employed in the agriculture, forestry, fishing hunting, and mining industry, making up approximately 0.4 percent of the population in Tracy (Table II-19). Given that the City of Tracy is highly urbanized with farming activities located primarily in the unincorporated areas outside the curren t city limits, the farmworker population in the City is limited.

Resources Available
Because the City’s farmworker population is small, no special housing programs for this group are necessary. The housing needs of farmworkers in the City can be met through the various affordable housing programs that are available to all lower income households.

6. Households Living in Poverty and Extremely Low Income Households Households living in poverty 3 comprise about 7 percent of Tracy’s total households ( Table II-19).

Table II-24 shows that Tracy has a lower percentage of households living in poverty compared to the County and the State, while Figure II–15 shows that the percentage of households in poverty has decreased in Tracy between 2010 and 2020.

Table II-24: Total Households in Poverty in Tracy, San Joaquin County and California

City of
Tracy Percent
San Joaquin
County Percent California Percent
Income Below Poverty Level 1,405 6.6% 18,652 10.8% 806,599 9.0% Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Figure II–15 Total Tracy Households in Poverty and Percent Change Over Time (2010-2020)

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

2 USDA Agricultural Census, Table 7, 2017
3 Information from the Census Bureau: The poverty definition is based on money income before taxes and does not include capital gains or non-cash benefits. The official FPL is calculated annually in order to reflect inflation by the Census Bureau and is used primarily for statistical purposes. The Census Bureau assigns each person or family a singular threshold out of a possible 48, which can vary by family size (designated up to a nine-person family unit or more), number of children, and—in the case of one-person and two-person households—elderly status.

II. Housing Needs Assessment
City of Tracy
II-27 2023-2031 Housing Element

Extremely low income (ELI) households are considered households earning 30 percent or less than the area median income (AMI). Extremely low income households are more likely to experience housing problems and cost burden.

Table II-25 shows the latest CHAS data based on the 2015 -2019 ACS. Approximately six percent of households in Tracy are extremely low income. Of these 1,615 households, 815 are renters and 800 are owners. The table also shows that more than three-quarters of extremely low income households in Tracy experience cost burden. Due to increases in rent and housing prices, these households will likely continue to face housing problems. The need s of this special needs group are taken into consideration and are generally addressed through the City’s overall programs for housing affordability and by prioritizing funding and development opportunities for projects that include housing for ELI households.

Table II-25: Extremely Low Income (ELI) Households by Tenure and Housing Problems Owner Renter Total
Households Percent Households Percent Households Percent ELI Households 800 4.9% 815 8.5% 1,615 6.3%
With Housing Problem 630 78.8% 630 77.3% 1,260 78.0%
With Cost Burden 630 78.8% 630 77.3% 1,260 78.0%
Total Households in Tracy 16,225 100% 9,630 100% 25,855 100% Source: HUD Comprehensive Housing Affordability Strategy (CHAS), (based on the 2015-2019 American Community Survey).

7. Persons Experiencing Homelessness
According to the U.S. Department of Housing and Urban Development (HUD), a person is considered homeless if he/she is not imprisoned and:
• Lacks a fixed, regular, and adequate nighttime residence; • The primary nighttime residence is a publicly or privately operated shelter designed for temporary living arrangements;
• The primary residence is an institution that provides a temporary residence for individuals that should otherwise be institutionalized; or
• The primary residence is a public or private place not designed for or ordinarily used as a regular sleeping accommodation.

The San Joaquin County Continuum of Care (SJCoC) conducted the 2022 Point-in-Time (PIT) Count during th e last ten days in January 2022. 4 The PIT Count found 2,319 persons experiencing homelessness in the County. Of those, 964 were sheltered and 1,355 were unsheltered. Table II-26 shows the homeless counts from 2017 t o 2022. Please note that a PIT count of unsheltered persons was not conducted in 2020 or 2021. The number of homeless persons decreased by 310 individuals between 2019 and 2022. It is noted by the SJCoC that the decrease between 2019 and 2022 may indeed

4 San Joaquin Continuum of Care Report on the Point in Time Count of the Sheltered and Unsheltered Homeless, June 15, 2022.

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-28
be due to a decline in individuals, but it may be also due to extenuating circumstances from COVID-19, such as a lower number of volunteers during the PIT count.5 Table II-26: San Joaquin Continuum of Care Homeless Counts (2017-2022) 2017 2018 2019 2020 2021 2022
Sheltered Count 985 1,118 1,071 1,119 885 964
Unsheltered Count 567 NA 1,558 NA NA 1,355
Total Count 1,552 1,118 2,629 1,119 885 2,319
Source: SJCoC Point in Time Count Trends and Analysis – Homelessness and Disparity in San Joaquin County, updated June 9, 2022.

NA = data not available

According to the SJCoC 2022 PIT, 124 persons were counted in the City of Tracy. This is a 20 percent decrease from the 155 individuals that were counted for the 2019 Point -In-Time count. Table II-27 provides information about the individuals in the 2022 PIT count.

Table II-27: 2022 Point-In-Time Data: Unsheltered Persons in Tracy Gender

Male 68%
Female 32%
Race

Native/Indigenous 2%
Asian 0%
Black 18%
Pacific Islander 2%
White 74%
Multi-racial 5%
Ethnicity

Hispanic 30%
Non-Hispanic 70%
Other Data

Chronically Homeless 51%
Reported Substance Issue 24%
Reported Mental Health Issue 24%
Between Age of 18-24 2%
Age 62 or Older 12%
Veterans 5%
Total Unsheltered Persons 124
Source: San Joaquin Continuum of Care Report on the Point in Time Count of the Sheltered and Unsheltered Homeless, June 15, 2022.

Resources Available
In May 2020, the City Council adopted the Homeless Strategic Plan (Strategic Plan). This Strategic Plan identified four primary goals:
• Increase housing options in Tracy
• Increase access to coordinated support services for people experiencing homelessness • Develop action plans for engaging with people experiencing homelessness • Enact specific strategies for vulnerable subpopulations experiencing homelessness

5 SJCoC Point in Time Count Trends and Analysis – Homelessness and Disparity in San Joaquin County, updated June 9, 2022.

II. Housing Needs Assessment
City of Tracy
II-29 2023-2031 Housing Element
The Strategic Plan includes obje ctives and a detailed implementation plan for each of these goals.

Some of the implementation measures focused on emergency, transitional and permanent housing options in the City. Preparation of the Strategic Plan included a variety of stakeholders. A det ailed list of available State resources was also included.

Services and facilities available to the homeless in and around Tracy are listed in Table II-28.

Table II-28: Homeless Services
Organization Services
Central Valley Low Income
Housing Corporation (Stockton)
Provides rent assistance and supportive services to homeless families and individuals, including case management, budgeting assistance/ counseling, education assistance, and job search preparation.

New Directions (Stockton) Serves homeless individuals who have a history of substance abuse.

Program participants reside in dormitories and receive supportive services which include individual and group counseling.

Lutheran Social Services of
Northern California (Stockton)
Provides rent assistance and support services to homeless former foster youth with disabilities. Supportive services include case management, education assistance, child care, and transportation assistance.

Coalition of Tracy Citizens to
Assist the Homeless (CTCAH)
Operates Emerson House, a transitional shelter for homeless men.

Tracy Interfaith Ministries Provides bagged groceries and clothing for homeless individuals, and works with the Salvation Army to provide one-night vouchers for Tracy motels.

McHenry House Tracy Family
Shelter
Provides shelter to homeless families and single women.

Tracy Interim Shelter Site Provides a low barrier shelter option to men, women, couples and pets.

Tracy Community Connections
Center
Provides intake and referral support for Tracy’s shelter. Provides a Navigation Center for Tracy residents in need of housing and resources.

In September 2020, the City Council gave direction to move forward with the development of plans for the design and construction of a temporary emergency housing facility. The site is located on 4.8 acres at 370 W. Arbor Avenue. The 6,300 square -foot low -barrier navigation facility will accommodate people, pets, and possessions and is anticipated to provide shelter for approximately 68 residents within a congregate sprung shelter. Underground site work was completed in August 2022. This project has experienced significant delays in construction. Council directed the City to move on alternative housing options due to the delay in construc tion and ordered a declaration establishing an emergency shelter crisis (Resolution 2022-121). This resolution also directed the City Manager to take immediate and emergency actions necessary to implement interim housing solutions for Tracy’s unsheltered p opulation. These interim housing solutions provided a Phase 3 and Phase 4 of the Arbor Avenue site which allowed the City to procure goods and services to support additional units. Phase 3 consists of 48 units within modular dormitory facilities and Phase 4 includes 38 container units that are currently in construction. Today, there are 48 beds in service at the Arbor Avenue site. In addition, the City has contracted with two providers, one which provides the oversight of the shelter’s day to day operations and the other which provides the referral and intake process for entry into the shelter.

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-30

8. Cumulative Needs and Resources for Special Needs Groups in Tracy The City was able to provide the following assistance to special needs households during the 2015- 2023 Housing Element planning period:
• In 2019, the City allocated $112,000 in Home Investment Partnership Program funds to the San Joaquin County Housing Authority an d Stone Pine Meadows, a 72 -unit apartment complex for lower-income households.
• In FY 2021, the City allocated $163,461 in Home Investment Partnership Program funds to the San Joaquin County Housing Authority to support the demolition and reconstruction of a 60-unit low-income apartment project.
• In 2020, City Council allocated $4 million to the Housing Authority of San Joaquin County for the rehabilitation of existing low-income housing units • The City facilitated the rehabilitation of the McHenry House - Family Homeless Shelter and Emerson House (transitional housing facility for men) through the CDBG program. • The City continues to participate in the Housing Choice Voucher Program operated by the San Joaquin Housing Authority funded by HUD. About 162 Tracy households are currently receiving housing choice voucher assistance.

F. Housing Stock Characteristics
A community’s housing stock is defined as the collection of all housing units located within the jurisdiction. The characteristics of the housing stock, inclu ding growth, type, age and condition, tenure, vacancy rates, housing costs, and affordability are important in determining the housing needs for the community. This section details the housing stock characteristics of Tracy to identify how well the current housing stock meets the needs of current and future residents of the City.

1. Housing Growth
In 2020, Tracy had 27,787 housing units, San Joaquin County had over 245,000 units and California had over 14 million units (Table II-29). Figure II–16 shows housing unit growth from 1980 to 2020 in Tracy while Table II-30 shows unit growth trends over the last 40 years in all of the jurisdictions in San Joaquin County. Similar to the increase in population within the County, the highest growth for housing units occurred between 1980 and 1990. The growth in Tracy during that decade was ove r 80 percent and all jurisdictions saw growth of at least 30 percent. Tracy experienced rapid housing growth from 1990 to 2010, while slower growth occurred between 2010 and 2022 . The total number of housing units in the City increased 49 percent between 1 990 and 2000 , another 44 percent from 2000 to 2010 and seven percent between 2010 and 2022 (Figure II–16 and Table II-30). Much of the housing growth that occurred between 2000 and 2010, however, took place in the first half of the decade. Residential building permit data indicates that a tremendous amount of housing development occurred in Tracy between 2000 and 2004. Residential development declined sharply in 2005 due to decreased housing demand and the voter -approved Measure A initiative, which amended the City’s Growth Management Ordinance (GMO) by reducin g the number of new residential building permits allowed each year from 1,500 to 750. New housing construction declined further since 2007 as a result of the economic downturn and tightening of the credit market. Since 2010, the greatest housing growth in San Joaquin County occurred in Escalon, Lathrop and Manteca.

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City of Tracy
II-31 2023-2031 Housing Element
Table II-29: Housing Units in Tracy, San Joaquin County and California City of Tracy
City % of
County
San Joaquin
County
County % of
State California
Total 27,787 11.3% 245,192 1.7% 14,210,945
Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Figure II–16: Total Housing Units and Percent Change Over Time (1980-2020)

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Table II-30: Housing Growth Trends (1980-2020)
Jurisdiction 1980 1990 2000 2010 2020
% Change
1980-
1990
1990 –
2000
2000 –
2010
2010-
2022
Escalon 1,199 1,640 2,132 2,610 3,047 36.78% 30.00% 22.42% 16.74% Lathrop 1,071 2,040 2,991 5,261 6,290 90.48% 46.62% 75.89% 19.56% Lodi 14,015 19,676 21,378 23,792 24,190 40.39% 8.65% 11.29% 1.67% Manteca 8,592 13,981 21,378 23,132 26,774 62.72% 52.91% 8.20% 15.74% Ripon 1,244 2,567 3,446 5,129 5,785 106.35% 34.24% 49.84% 12.79% Stockton 55,335 72,525 82,042 99,637 101,954 31.07% 13.12% 21.45% 2.33% Tracy 6,632 12,174 18,087 25,963 27,787 83.56% 48.57% 43.55% 7.03% County Total – 166,274 189,160 233,755 245,192 – 13.80% 23.60% 10.61% Sources: Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

2. Housing Type
Table II-31 shows the mix of housing units in Tracy , San Joaquin County and California in 2020.

Tracy’s housing stock is comprised mostly of single -family detached homes (8 1%). Another three percent of units are single-family attached units (such as zero lot line or second units). Just 16 percent of units in the City are multi-family units, while housing types such as mobile homes, boats, RV s, and vans make up about 2 percent of total housing units. Tracy and the County have a much greater percentage of detached single-family homes (81% and 74%) compared to the State (58%).

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-32
Table II-31: Housing Units By Type for Tracy, San Joaquin County and California

City of
Tracy Percent
San Joaquin
County Percent California Percent
Total 27,787

245,192

14,210,945

1, Detached 22,462 80.8% 181,875 74.2% 8,206,621 57.7%
1, Attached 914 3.3% 10,990 4.5% 1,009,488 7.1%
2 677 2.4% 4,823 2.0% 339,846 2.4%
3 or 4 693 2.5% 9,222 3.8% 773,994 5.4%
5 to 9 954 3.4% 9,029 3.7% 840,296 5.9%
10 to 19 455 1.6% 6,480 2.6% 721,132 5.1%
20 to 49 583 2.1% 5,638 2.3% 705,450 5.0%
50 or More 680 2.4% 8,877 3.6% 1,083,247 7.6%
Mobile Home 355 1.3% 8,074 3.3% 515,666 3.6%
Boat, RV, Van, etc. 14 0.1% 184 0.1% 15,205 0.1%
Sources: Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Table II-32 shows the growth in Tracy’s housing stock since 2010 and Table II-33 shows housing units by number of bedrooms since 2010. In the last decade, the percentage of multi -family developments with five or more units have increased from seven to ten percent.

Table II-32: Housing Units By Type Over Time in Tracy (2010-2020) 2010 Percent 2015 Percent 2020 Percent
Total 25,449 – 25,286 – 27,787 –
1, Detached 20,707 81.4% 20,767 82.1% 22,462 80.8%
1, Attached 860 3.4% 864 3.4% 914 3.3%
2 718 2.8% 499 2.0% 677 2.4%
3 or 4 842 3.3% 617 2.4% 693 2.5%
5 to 9 744 2.9% 912 3.6% 954 3.4%
10 to 19 245 1.0% 361 1.4% 455 1.6%
20 to 49 346 1.4% 286 1.1% 583 2.1%
50 or More 529 2.1% 400 1.6% 680 2.4%
Mobile Home 458 1.8% 580 2.3% 355 1.3%
Boat, RV, Van, etc. 0 0.0% 0 0.0% 14 0.1%
Sources: Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Table II-33: Housing Units by Number of Bedrooms Over Time (2010-2020) 2010 % of Total 2015 % of Total 2020 % of Total
Total 25,449 – 25,286 – 27,787 –
No Bedroom (BR) 165 0.6% 273 1.1% 422 1.5%
1 BR 1,111 4.4% 1,243 4.9% 1,551 5.6%
2 BR 3,648 14.3% 3,813 15.1% 4,031 14.5%
3 BR 9,101 35.8% 8,742 34.6% 10,123 36.4%
4 BR 8,674 34.1% 7,968 31.5% 9,089 32.7%
5+ BR 2,750 10.8% 3,247 12.8% 2,571 9.3%
Sources: Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

3. Housing Tenure and Availability
Housing tenure and vacancy rates are important indicators of the supply and cost of housing in a community. Housing tenure refers to wh ether a unit is owned or rented. According to 2016-2020 ACS data, approximately 6 2 percent of Tracy households were homeowners, while the remaining 38 percent were renters (Table II-34). The home ownership rate in Tracy was higher than the County average, but below that of the neighboring cities of Escalon , Lathrop, Manteca, and Ripon .

Furthermore, comparing this tenure distribution with the composition of the City’s housing stock II. Housing Needs Assessment
City of Tracy
II-33 2023-2031 Housing Element
indicates that a significant number of single -family homes are used as rentals, reflecting a demand for rental housing in the community.

Table II-34: Housing Tenure
Jurisdiction
Owner-Occupied Renter-Occupied
# % # %
Escalon 2,180 72.5% 828 27.5%
Lathrop 4,640 79.7% 1,179 20.3%
Lodi 12,163 52.8% 10,854 47.2%
Manteca 16,748 65.2% 8,922 34.8%
Ripon 3,931 70.1% 1,673 29.9%
Stockton 47,481 49.9% 47,755 50.1%
Tracy 16,684 61.8% 10,323 38.2%
County Total 133,381 57.7% 97,711 42.3%
Source: Bureau of the Census, American Community Survey, 2016-2020

Figure II–17 shows housing tenure in Tracy over the last 40 years. The percentage of owner-occupied units increased from 44 percent in 1980 to 62 percent in 2020. The highest percentage of owner - occupied units occurred in 2000, at 72 percent.

Figure II–17: Household Tenure in Tracy Over Time (1980-2000)

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

In terms of tenure by race and ethnicity in Tracy (Figure II–18), Asian households have the highest percentage of owner -occupied households (79%), followed by American Indian or Alaska Native and Black or African American households (65%) and White households (60%). Conversely, Native Hawaiian or Other Pacific Islander households have the highest percentage of renter households (61%), followed by Some Other Race Alone (48%), Two or More Races (47%) and Hispanic or Latino households (45%).

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-34
Figure II–18: Housing Tenure By Race Or Hispanic Origin

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

Owner-households are larger in size on average than renter -households. Families with children usually represent many of the larger households in a community, and these households usually prefer owner -occupied housing. The homeownership rate in Tracy was equal or higher for all household size categories compared with the County (Table II-35).

Table II-35: Percentage Homeowner by Household Size
Household Size
Owner-Occupied Renter-Occupied
Number Percent County Percent Number Percent County Percent 1 person 2,271 52.2% 52.4% 2,080 47.8% 47.6%
2 people 4,416 72.7% 65.3% 1,659 27.3% 34.7%
3 people 2,780 54.0% 54.9% 2,369 46.0% 45.1%
4 people 3,872 66.6% 57.8% 1,943 33.4% 42.2%
5 person 1,959 59.6% 53.6% 1,328 40.4% 46.4%
6 person 970 62.4% 53.0% 584 37.6% 47.0%
7 + people 416 53.6% 60.1% 360 46.4% 39.9%
Source: Bureau of the Census, American Community Survey, 2016-2020

Vacancy rates can indicate whether there is a balance between the population and available housing units. A low vacancy rate means there is a high demand for housing in the area. A high demand for housing can increase the cost of housing as well as become a disincentive for property owners to maintain their property. A vacancy rate between 3 percent and 5 percent is considered optimal (essentially, suggesting full occupancy) for rental hous ing while 2 percent to 3 percent is ideal for ownership housing. Between 2016-2020, the City’s overall vacancy rate was 2.8 percent. During that same time period, the owner vacancy rate was 0.3 percent while the renter vacancy rate was 1.7

II. Housing Needs Assessment
City of Tracy
II-35 2023-2031 Housing Element
percent. These rates indicate an extremely tight housing market for both owner and renter housing in Tracy. Figure II–19 shows vacant units by type. “Other” vacant and units for rent comprised almost 50 percent of the vacant units in Tracy.

Figure II–19: Percent Vacant Units By Type

Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

4. Housing Age and Condition
Housing age can be an important indicator of housing condition within a community. Like any other tangible asset, housing is subject to gradual physical or technological deterioration over time. If not properly and regularly maintained, housing can deteriorate and discourage reinvestment, depress neighboring property values, and eventually impact the quality of life in a neighborhood. Thus, maintaining and improving housing quality is an important goal for the City.

Most of Tracy’s housing was built between 1980 and 2009 (Table II-36). Overall, the housing stock in the City is newer than housing in the County. A general rule in the housing industry is that structures older than 30 years begin to show signs of deterioration and require reinvestment to maintain their quality. An estimated 11,115 units ( 40% of the hous ing stock) in Tracy were constructed prior to 1990 and would be of sufficient age to require maintenance or rehabilitation.

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-36
Table II-36: Age of Local Housing Stock
Year Housing Unit Was Built
Tracy
County Number %
Built 2014 or later 1,078 3.9% 3.2%
2010 to 2013 293 1.1% 2.0%
2000 to 2009 7,841 28.2% 18.8%
1990 to 1999 7,460 26.8% 14.1%
1980 to 1989 4,654 16.7% 14.9%
1970 to 1979 2,163 7.8% 15.2%
1960 to 1969 1,046 3.8% 9.6%
1950 to 1959 1,448 5.2% 9.9%
1940 to 1949 772 2.8% 5.4%
1939 or earlier 1,032 3.7% 7.1%
Total 27,787 100.0% 100.00%
Source: Bureau of the Census, American Community Survey, 2016-2020

The 2016-2020 ACS data showing the condition of the City’s existing housing stock is in Table II-37.

In general, the condition of the housing stock in Tracy is good. Only 0.2 percent of owner-occupied units lack complete kitchen facilities and 0.1 percent lack complete plumbing facilities. For renter - occupied units 0.4 percent lack complete kitchen facilities. The occurrence of substandard conditions in Tracy is lower than San Joaquin County.

Table II-37: Lack of Complete Facilities by Tenure
Facility Type
Owner-
Occupied
Renter-
Occupied
Total
Households County
Lacking complete kitchen facilities 0.2% 0.4% 0.3% 1.0% Lacking complete plumbing facilities 0.1% 0.0% 0.1% 0.4% Total Households 16,684 10,323 27,007 231,092
Source: Bureau of the Census, American Community Survey, 2016-2020

While the ACS data provides information about substandard conditions, the City’s Code Enforce- ment Division conducts visual surveys to determine housing conditions. The Code Enforcement Division reports there are approximately 20 substandard violations in 2023.

The City collaborates with the San Joaquin County Neighborhood Preservation Division on housing rehabilitation efforts. In 2020, City Council allocated $4 million to the Housing Authority of San Joaquin County for the rehabilitation of existing low-income housing units.

G. Housing Costs and Affordability
The cost of housing is directly related to the extent of housing problems in a community. If housing costs are relatively high in comparison to household income, there will be a correspondingly higher prevalence of housing cost burden and overcrowding. This section summarizes the cost and affordability of the housing stock to Tracy residents.

1. Homeownership Market
In August 2022, the median home value in Tracy was $823,750 per data from CoreLogic (Table II-38).

This median home value was 10 percent higher than a year prior in August 2021 ($751,000) . Over the 12 -month period, the increas e in median home values in the County overall were similar to II. Housing Needs Assessment
City of Tracy
II-37 2023-2031 Housing Element
Tracy. The jurisdictions of Lathrop, Lodi and Manteca saw greater increases, while Escalon and Ripon’s home values saw decreases.

Table II-38: Median Home Values (August 2021-August 2022) Jurisdiction # of Units Sold Aug-21 Aug-22 % Change
Escalon 9 $477,500 $450,000 -5.8%
Lathrop 93 $599,750 $746,000 24.4%
Lodi 68 $498,750 $575,000 15.3%
Manteca 129 $570,000 $642,000 12.6%
Ripon 22 $640,000 $611,000 -4.5%
Stockton 360 $411,500 $424,500 3.2%
Tracy 182 $751,000 $823,750 9.7%
San Joaquin County 879 $525,000 $575,000 9.5%
Source: Corelogic.com, California Home Sale Activity by City, August 2022.

Table II-39 shows home sale prices in Tracy during November 2022. As shown, the majority of homes for sale were 4-bedroom units with a median price of $825,000. The me dian price for 2-bedroom homes was $485,000 and 6-bedroom homes was $1,175,000. A few condos and townhomes were also listed and had median prices of $427,500 (two bedrooms), $620,000 ( 3 bedrooms) and $764,000 (4 bedrooms).

Table II-39: Tracy Home Sale Prices (November 2022)
Unit Type Bedrooms Units Listed Range Median Average
Detached Homes 1 1 $170,000 --- ---
2 5 $359,995 - $774,500 $485,000 $563,139
3 49 $429,950 - $1,095,000 $640,000 $670,141
4 97 $530,000 - $2,350,000 $825,000 $868,091
5 37 $759,000 - $2,500,000 $995,950 $1,045,192
6 4 $949,900 - $1,450,000 $1,175,000 $1,187,475
Condos/Townhomes 2 3 $375,000 - $560,000 $427,500 $454,166 3 3 $539,888 - $654,880 $620,000 $604,922
4 3 $723,880 - $764,880 $764,880 $751,213
Source: Zillow.com, November 2022

2. Rental Market
As previously noted, while approximately 83 percent of the City’s housing stock is comprised of single-family homes, about 6 2 percent of the households were owner -occupied households. This would suggest that many single-family homes in the City were being used as rentals. According to the U.S. Census, median gross rent has increased from $225 a month in 1980 to $1,862 a month in 2020 (Table II-40).

Table II-40: Median Gross Rent Over Time (1980-2020)
1980 1990 2000 2010 2020
Median Gross Rent $225 $598 $807 $1,290 $1,862
Percent Change

165.78% 34.95% 59.85% 44.34%
Sources: Source: Census Data from the San Joaquin Valley REAP Housing Data Workbook, 2022 (amended 2023).

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-38
Market-rate rents for housing in Tracy are summarized in Table II-41. Rental rates were compiled based on a review of various online resources in November 2022. Rents varied by housing type and by the number of bedrooms. The majority of apartments available consisted of one - and two - bedroom units with median rents of $2,295 and $2,558, respectively. The single-family homes available for rent were typically much larger (three to five bedrooms) and had median rents of $2,500 to $3,300.

Table II-41: Rental Rates (November 2022)
Unit Type Bedrooms Units Listed Range Median Average
Apartments 1 27 $1,550 - $2,624 $2,295 $2,236
2 26 $1,695 - $2,920 $2,558 $2,535
3 10 $2,895 - $3,370 $3,279 $3,186
Condos/Townhomes 3 1 $2,100 – –
Homes 1 (ADU) 2 $1,650 - $1,695 $1,672 $1,672
3 9 $2,200 - $3,299 $2,500 $2,622
4 16 $2,650 - $3,495 $2,997 $3,013
5 7 $2,999 - $3,550 $3,300 $3,327
Source: Online rental survey on November 7, 2022, Apartments.com and Rent.com

3. Housing Affordability by Income Level
Housing affordability can be inferred by comparing the cost of renting or owning a home in the City with the maximum affordable housing costs for households at different income levels. Taken together, this information can generally show who can afford what size and type of housing and indicate the type of households most likely to experience overcrowding and overpayment.

The federal Department of Housing and Urban Development (HUD) conducts annual household income surveys nationwide to determine a household ’s eligibility for federal housing assistance.

Based on this survey, the California Department of Housing and Community Development (HCD) developed income limits that can be used to determine the maximum price that could be affordable to households in the upper range of their respective income category. Households in the lower end of each category can afford less by comparison than those at the upper end. Table II-42 shows the maximum amount that a household can pay for housing each month without incurring a cost burden (overpayment). This amount can be compared to current housing asking prices ( Table II-39) and market rental rates (Table II-41) to determine what types of housing opportunities a household can afford.

Extremely Low Income Households
Extremely low income households earn 30 percent or less of the County area median income – up to $17,400 for a 1-person household and up to $32,470 for a 5-five-person household in 2015. Extremely low income households cannot afford market-rate rental or ownership housing in Tracy.

Very Low Income Households
Very low income households earn between 31 percent and 50 percent of the County area median income – up to $29,000 for a one-person household and up to $44,750 for a five-person household in 2022. A very low income household can afford homes offered at prices between $54,136 and $67,077, adjusting for household size. Given the costs of ownership housing in Tracy, very low income households would not be able to afford a home in the City. Similarly, very low income renters could not afford market -rate rental units in Tracy. After deductions for utilities, a very low income II. Housing Needs Assessment
City of Tracy
II-39 2023-2031 Housing Element
household at the maximum income limit can afford to pay approximately $ 459 to $646 in monthly rent, depending on household size.

Low Income Households
Low income households earn between 51 percent and 80 percent of the County’s area median income - up to $46,350 for a one-person household and up to $ 71,500 for a five-person household in 20 22.

The affordable home price for a low income household at the maximum income limit ranges from $128,439 to $181,637. Based on the asking prices of homes for sale in November 2022 (Table II-39), ownership housing would be unaffordable to low income households. After deductions for utilities, a one-person low income household could afford to pay up to $ 893 in rent per month and a five - person low income household could afford to pay as much as $1,315. In 2022, low income households in Tracy would not be able to find affordable adequately sized apartment units (Table II-41).

Moderate Income Households
Moderate income households earn between 81 percent and 120 percent of the County’s Area Median Income – up to $110,150 depending on household size in 2022. The maximum affordable home price for a moderate income household is $ 235,718 for a 1-person household and $347,159 for a 5-person family. Moderate income households in Tracy will also have trouble purchasing adequatel y sized homes. The maximum affordable rent payment for moderate income households is between $ 1,519 and $2,281 per month. Appropriately sized market-rate rental housing may be difficult to secure for households in this income group.

Table II-42: Housing Affordability Matrix - San Joaquin County (2022) Household
Annual
Income
Affordable
Costs
Estimated Utility Allowance,
Taxes, and Insurance
Affordable
Rent
Affordable
Home Price (All Costs) Utilities
Taxes, Ins., HOA
(Ownership)
Extremely Low Income (0-30% AMI)
1-Person $17,400 $435 $266 $152 $169 $4,458
2-Person $19,900 $498 $290 $174 $207 $8,708
3-Person $23,030 $576 $347 $202 $229 $7,178
4-Person $27,750 $694 $411 $243 $283 $10,569
5-Person $32,470 $812 $473 $284 $339 $14,487
Very Low Income (30-50% AMI)
1-Person $29,000 $725 $266 $254 $459 $54,136
2-Person $33,150 $829 $290 $290 $538 $65,452
3-Person $37,300 $933 $347 $326 $586 $68,291
4-Person $41,400 $1,035 $411 $362 $624 $69,027
5-Person $44,750 $1,119 $473 $392 $646 $67,077
Low Income (50-80% AMI)
1-Person $46,350 $1,159 $266 $406 $893 $128,439
2-Person $53,000 $1,325 $290 $464 $1,035 $150,462
3-Person $59,600 $1,490 $347 $522 $1,143 $163,792
4-Person $66,200 $1,655 $411 $579 $1,244 $175,235
5-Person $71,500 $1,788 $473 $626 $1,315 $181,637
Median Income (80-100% AMI)
1-Person $59,500 $1,488 $266 $521 $1,222 $184,755
2-Person $68,000 $1,700 $290 $595 $1,410 $214,700
3-Person $76,500 $1,913 $347 $669 $1,566 $236,168
4-Person $85,000 $2,125 $411 $744 $1,714 $255,747
5-Person $91,800 $2,295 $473 $803 $1,822 $268,573
II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-40
Household
Annual
Income
Affordable
Costs
Estimated Utility Allowance,
Taxes, and Insurance
Affordable
Rent
Affordable
Home Price (All Costs) Utilities
Taxes, Ins., HOA
(Ownership)
Moderate Income (100-120% AMI)
1-Person $71,400 $1,785 $266 $625 $1,519 $235,718
2-Person $81,600 $2,040 $290 $714 $1,750 $272,943
3-Person $91,800 $2,295 $347 $803 $1,948 $301,692
4-Person $102,000 $2,550 $411 $893 $2,139 $328,551
5-Person $110,150 $2,754 $473 $964 $2,281 $347,159
Source: California Department of Housing and Community Development, 2022 Income limits; and Veronica Tam and Associates.

Assumptions: 2022 HCD income limits; 30% gross household income as affordable housing cost; 35% of monthly affordable cost for taxes and insurance; 10.0% down payment; and 3.0% interest rate for a 30-year fixed-rate mortgage loan. Utilities based on the HACSJ Utility Allowance, July 1, 2022. Utility allowances based on the combined average assuming all electric and all natural gas appliances.

H. Affordable Housing
Government Code Section 65583 requires each city and cou nty to conduct an analysis and identify programs for preserving assisted housing developments. The analysis is required to identify any low income units that are at risk of losing deed -restricted subsidies in the next 10 years. Thus, this at-risk housing a nalysis covers a ten -year period from January 1, 2023 through January 1, 2033 .

Consistent with State law, this section identifies publicly assisted housing units in Tracy, analyzes their potential to convert to market rate housing uses, and analyzes the co st to preserve or replace those units.

1. Assisted Housing
Housing that receives governmental assistance is often a significant source of affordable housing in many communities. Covenants and deed restrictions are the typical mechanisms used to maintain the affordability of publicly assisted housing, ensuring that these units are available to lower and moderate income households in the long term. Over time, the City may face the risk of losing some of its affordable units due to the expiration of covenants and deed restrictions.

The City of Tracy has seven publicl y assisted housing developments, with a combined total of 659 units that are set aside as affordable for lower income households. These projects are presented in Table II-43. Section 8 eligibility for the 87-unit Tracy Garden Apartments will expire in July 2028. In 2031, the Low Income Housing Tax Credits (LIHTC) for the Chesapeake Bay Apartments complex are set to expire, which would impact 138 two -bedroom units and 12 three -bedroom affordable units. Therefore, 237 affordable units in Tracy are at -risk of becoming market rate during this 6 th Housing Element cycle.

II. Housing Needs Assessment
City of Tracy
II-41 2023-2031 Housing Element
Table II-43: Inventory of Assisted Units
Project Name
Total
Units
Assisted
Units
Unit
Size Type Funding Source(s)
Expiration of
Affordability
Tracy Garden
Apartments
88 87 87 1-br Seniors Low Income Housing
Tax Credit program; Project-
based Section 8
11/1/2064;
Section 8 expires
7/31/28
Tracy Village
Apartments
72 71 24 1-br
32 2-br
15 3-br
Family Low Income Housing
Tax Credit program
9/9/2060
Chesapeake Bay
Apartments
216 150 138 2-br
12 3-br
Family Low Income Housing
Tax Credit program
2031
Mountain View
Townhomes
37 36 10 2-br
14 3-br
12 4-br
Family Redevelopment set-aside
funds; Low Income Housing
Tax Credit program
2054
Stone Pine
Meadows
72 71 15 1-br
23 2-br
27 3-br
6 4-br
Family Redevelopment set-aside
funds; Low Income Housing
Tax Credit program;
HOME funds
2047
Tracy Place Senior
Apartments
50 49 41 1-br
8 2-br
Seniors Redevelopment set-aside
funds; Low Income Housing
Tax Credit program
2063
Tracy Homes 195 195 24 1-br
32 2-br
15 3-br
Family Housing Authority of the
County of San Joaquin
None
The Vela
Apartments
264 70 1 br to
3 br units
Family City GMO Program –
Moderate-Income Units
2038
Total 729 729
Sources: City of Tracy, 2022
Preservation and Replacement Options
Preservation or replacement of at -risk projects can be achieved in several ways: 1) transfer of ownership to non -profit organizations; 2) provision of rental assistance other than through the Section 8 program; 3) replacement or development of new assisted multi-family housing units; 4) purchase of affordability covenants; and/or 5) refinance of mortgage revenue bonds on bond funded units. These options are described below, along with a general cost estimate for each.

1. Transfer of Ownership
The California Department of Housing and Community Development (HCD) keeps a current list of all of the qualified entities across the State. A “qualified entity” is a nonprofit or for -profit organization or individual that agrees to maintain the long-term affordability of housing projects.

Efforts by the City to retain low -income housing must be able to draw upon two basic types of preservation resources: organizational and financial. Qualified, non -profit entities need to be made aware of the future possibilities of units becoming at risk.

Available public and non -profit organizations with the capacity to preserve assisted housing developments include San Joaquin County, San Joaquin County Housing Authority, the City of Tracy, and various non -profit developers, includ ing Self Help Enterprises and Bridge Housing Corporation. Financial resources available include bond financing, as well as CDBG and HOME funds, Section 8 rental assistance, low income housing tax credits, and Proposition 1C funds.

II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-42
Current market value for the units is estimated on the basis of the project’s potential annual income and operating and maintenance expenses. As indicated in Table II-44, the estimated market value of the at -risk units is $ 23.6 million. This estimate is provided for the purpose of comparison and understanding the magnitude of costs involved and does not represent the precise market value of this project. The actual market value at time of sale will depend on market and property conditions, and lease-out/turnover rates, among other factors.

Table II-44: Market Value of At Risk Units
Unit Information At-Risk Units
1-bedroom 87
2- bedroom 138
3- bedroom 12
Annual Operating Cost $1,933,709
Gross Annual Income $3,822,876
Net Annual Income $1,889,167
Market Value $23,614,588
Market value for project is estimated with the following assumptions:

Average market rent based on Fair Market Rents (FY 2023) established by HUD for Stockton-Lodi MSA. One-bedroom unit = $1,158; two-bedroom unit = $1,513; three-bedroom unit = $2,150; four-bedroom unit = $2,577.

Average size is assumed to be 600 square feet for a one-bedroom, 850 square feet for a two -bedroom, 1,200 square feet for a three-bedroom, and 1,500 square feet for a four-bedroom.

Annual income is calculated on a vacancy rate = 5%
Annual operating expenses per square foot = $10.52 (NAAHQ, Operating Income and Expense Data for All Subsidized Properties, 2021).

Market value = Annual net project income*multiplication factor Multiplication factor for a building in good condition is 12.5.

2. Rental Assistance
In the event that funding is no longer available for the at-risk units, rental subsidies can be used to maintain affordability by using local, state or other funding sources. The subsidies can be structured to mirror the Section 8 program, whereby tenants receive the difference between the Fair Market Rent (determined by HUD and the local housing authority) and the maximum affordable rent of the tenant (30% of household income).

Given the bedroom mix of the 237 at-risk rental units, the total cost of subsidizing the rent for the units is $200,091 per month, as shown in Table II-45. This translates into approximately $2.4 million annually or $48 million over a 20-year period.

Table II-45: Required Rental Subsidies for At-Risk Units Unit Size
Total
Units
Fair
Market
Rent
Household
Size
Very Low
Income
Limits
Affordable
Cost Utility
Per Unit
Subsidy
Monthly
Subsidy
1- bedroom 87 $1,158 2 $33,150 $829 $290 $619 $53,853
2- bedroom 138 $1,513 3 $37,300 $933 $347 $927 $127,926 3- bedroom 12 $2,150 4 $41,400 $1,035 $411 $1,526 $18,312 Total 237 $200,091
Sources: HUD FY 2023 Fair Market Rent, Stockton-Lodi, CA MSA FMRs, 2023; HCD 2022 Income Limits; HACSJ 2022 Utility Allowance Schedule; Veronica Tam & Associates, 2023

II. Housing Needs Assessment
City of Tracy
II-43 2023-2031 Housing Element

3. Construction of Replacement Units
The construction of new low income housing units i s a means of replacing the at -risk units should they be converted to market -rate units. The cost of developing housing depends upon a variety of factors, including density, size of the units (i.e., square footage and number of bedrooms), location, land costs, and type of construction. Estimated new construction costs for the two at-risk affordable housing projects are shown in Table II-46. The replacement of the 237 at-risk units would require approximately $174,589 per unit. However, this cost estimate does not include land, permits, on - and off-site improvements, and other costs.

Table II-46: Estimated Construction Costs to Replace At Risk Units Unit Size Total Units
Estimated Average
Unit Size
Estimated Gross
Building Size
(C)
Estimated Gross
Building Costs
(D)
1- bedroom 87 600 62,640 $11,745,000
2- bedroom 138 850 140,760 $26,392,500
3- bedroom 12 1,200 17,280 $3,240,000
4- bedroom 0 1,500 0 $0
Total 237 -- -- $41,377,500
Average Per Unit Cost

$174,589
Notes:
(C) = (A) x (B) x 1.20 (i.e., 20% inflation to account for hallways and other common areas) (D) = (C) x $150 (per square foot construction costs) x 1.25 (i.e., 25% inflation to account for parking and landscaping costs) Construction cost an estimate only.

4. Purchase of Affordability Covenants
Another option to preserve the affordability of the at-risk projects is to provide an incentive package to the owner to maintain the project as affordable housing. Incentives could include writing down the interest rate on the remaining loan balance, providing a lump -sum payment, and/or supplementing the rents to market levels. The feasibility and cost of this option depends on whether the complex is too highly leveraged and interest on the owner’s part to utilize the incentives found in this option. By providing lump sum financial incentives o r ongoing subsides in rents or reduced mortgage interest rates to the owner, the City could ensure that some or all of the units remain affordable.

5. Cost Comparisons
The above analysis attempts to estimate the cost of preserving the at -risk units under various options. However, because each project may have unique circumstances and therefore different options available, the direct comparison would not be appropriate. In general, providing additional incentives/subsidies to extend the affordability covenant would require the least funding over the long run, whereas the construction of new units would be the most costly option. Over the short term, providing rent subsidie s would be least costly but this option does not guarantee the long - term affordability of the units.

The cost to build new housing to replace the 237 at-risk units is high, with an estimated total cost of over $ 41.3 million, excluding land, on - and off -site improvements, and permit fees. New construction would be more expensive than transfer of ownership ($ 23.6 million). Both the construction of new housing and transfer of ownership would be substantially more expensive than providing rent subsidies ($2.4 million annually). However, rent subsidies do not provide long-term II. Housing Needs Assessment
City of Tracy
2023-2031 Housing Element II-44
affordable housing. Further, rental subsidies over a 20-year period would ultimately be more costly than transfer of ownership and most likely cost more than constructing replacement units.

I. Future Housing Needs
Future housing need refers to the share of the regional housing need that has been allocated to the City. The State Department of Housing and Community Development (HCD) supplies a regional housing goal number to the San Joaquin Council of Governments (SJCOG). SJCOG is then mandated to allocate the housing goal to city and county jurisdictions in the region. In allocating the region’s future housing needs to jurisdictions, SJCOG is required to take the following factors in to consideration pursuant to Section 65584 of the State Government Code:
• Market demand for housing;
• Employment opportunities;
• Availability of suitable sites and public facilities; • Commuting patterns;
• Type and tenure of housing;
• Loss of units in assisted housing developments;
• Over-concentration of lower income households; and
• Geological and topographical constraints.

The SJCOG Executive Board adopted its 2023 -2031 Regional Housing Needs Plan (RHNP) on September 22, 2022 . The Regional Housing Needs Allocatio n (RHNA) covers the June 30, 2023 through December 31, 2031 planning period and addresses housing issues that are related to future growth in the region. The RHNA allocates to each city and county a “fair share” of the region’s projected housing needs by household income group. The major goal of the RHNA is to assure a fair distribution of housing among cities and counties within the San Joaquin region, so that every community provides an opportunity for a mix of housing affordable to all economic segments. The housing allocation targets are not building requirements, but goals for each community to accommodate through appropriate planning policies and land use regulations. State Housing Element laws are intended to assure that adequate sites and zoning are made available to address potential housing demand during the planning period and that market forces are not inhibited in addressing the housing needs of all economic segments of a community.

Tracy’s share of regional future housing needs is 8,830 units for the June 30, 2023 to December 31, 2031 period. This allocation is distributed into five income categories, as shown below in Table II-47.

Per State law, local jurisdictions are required to provide an estimate for their projected extremely low income households (those earning 30% or less of the area median income). Jurisdictions can use half of their very low income RHNA allocation to make this projection. Therefore, Tracy is dividing the very low income allocation of 2,994 units in half to meet this state requirement. The RHNA includes a fair share adjustment which allocates future (construction) need by each income category in a way that meets the State mandate to reduce the over-concentration of lower income households in one community.

II. Housing Needs Assessment
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II-45 2023-2031 Housing Element
Table II-47: Tracy’s RHNA for 2023-2031
Income Category
(% of County AMI) Number of Units Percent
Extremely Low (30% or less) 1,497 16.9%
Very Low (31 to 50%) 1,497 16.9%
Low (51 to 80%) 1,879 21.3%
Moderate (81% to 120%) 1,175 13.3%
Above Moderate (Over 120%) 2,782 31.5%
Total 8,830 100.0%
Source: San Joaquin County Regional Housing Needs Plan (RHNP), SJCOG, September 2, 2022

III. Housing Constraints
City of Tracy
III-1 2023-2031 Housing Element
III Housing Constraints
This section describes various governmental, market, and environmental constraints on the development of housing that meets the needs of all economic segments of Tracy’s population.

A. Market Constraints
Market constraints significantly affect the cost of housing in Tracy, and can pose barriers to housing production and affordability.

1. Land and Construction Costs
The City of Tracy is located in San Joaquin County, east of the Coastal Range that separates California’s Central Valley from the San Francisco Bay Area. The City has an adequate supply of vacant, unconstrained land; however, residential construction in Tracy is li mited by the City’s Growth Management Ordinance (GMO), adopted in 1987 and later amended in 1994, 2000, 2009, 2012, 2013, and most recently in 201 5. Significant future housing construction is anticipated in the City’s Specific Plan areas, including the Tra cy Hills Specific Plan and the Ellis Specific Plan, as well as other residential areas identified in the General Plan. For land within City limits, the current land acquisition price for the City’s development impact fee program assumption is $211,455 an acre.1 An online survey found a quarter-acre property zoned PUD in the city that sold for $195,000. For land outside of City limits, a 1.8-acre parcel zoned unincor porated residential zoning sold for $925,000 ($511,000/acre)2.

Construction costs vary according to type of housing development, with multi-family housing being generally less expensive to construct , per dwelling unit, than single -family homes. However, variations within each construction type exist depending on the size of the unit, and the number and quality of amenities provided. Construction costs can be broken down into two primary categories:
materials and labor. A major component of the cost of housing is the cost of building materials, such as wood and wood -based products, cement, asphalt, roofing materials, and pipe. The availability and demand for such materials affect prices for these goods. In addition to rising labor costs, material costs are also impacting development prices. Most notably, lumber prices are likely to continue going up until there is an end t o the COVID -19 induced supply shocks; the same holds true with copper, steel and fuel prices.3
One indicator of construction costs is Building Valuation Data, compiled by the International Code Council (ICC). The unit costs compiled by the ICC include st ructural, electrical, plumbing, and mechanical work, in addition to interior finish and normal site preparation. The data is national and does not account for regional differences nor include the price of the land upon which the building is built. The most recent Building Valuation Data, dated February 2021, reports the national average for development costs per square foot for apartments and single-family homes as follows4:
• Type I or II, R-2 Residential Multi-family: $157.74 to $179.04 per square foot • Type V Wood Frame, R-2 Residential Multi-family: $120.47 to $125.18 per square foot

1 City of Tracy Engineering Division, September 2023.
2 www.trulia.com, Accessed September 2023
3 Sonoma County Economic Development Board. July 2021. “Construction Industry Insider Report”. www.sonomaedb.org
4 https://cdn-web.iccsafe.org/wp-content/uploads/BVD-BSJ-FEB21.pdf III. Housing Constraints
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2023-2031 Housing Element III-2
• Type V Wood Frame, R-3 Residential One- and Two-Family Dwelling: $130.58 to $138.79 per square foot
• R-4 Residential Care/Assisted Living Facilities generally range between $152.25 to $211.58 per square foot
In general, construction costs can be lowered by increasing the number of units in a development to a certain extent, until the scale of the project requires a different construction type that commands a higher per square foot cost.

2. Availability of Financing
The availability of financing affects a person’s ability to purchase or improve a home. Under the Home Mortgage Disclosure Act (HMDA), lending ins titutions are required to disclose information on the disposition of loan applications by the income, gender, and race of the applicants. This applies to all loan applications for home purchases, improvements and refinancing, whether financed at market rate or with government assistance.

Table III-1 summarizes the disposition of loan applications submitted to financial institutions in 20215 for home purchase, refinance, and home improvement loans in Tracy. Included is information on loan outcomes (i.e. , the number of applications that were approved and originated, denied, withdrawn by the applicant, and incomplete).

Table III-1: Disposition of Home Loans (2021)
Loan Type Total Applicants % Approved % Denied % Other
Government-backed 284 64.1% 8.8% 27.1%
Conventional 4,999 70.3% 6.2% 23.5%
Refinance 12,484 68.0% 9.7% 22.3%
Home Improvement 601 53.6% 30.1% 16.3%
Total 18,368 68.1% 9.4% 22.5%
Source: 2021 Home Mortgage Disclosure Data: https://ffiec.cfpb.gov Notes: 1. “Approved” includes loans approved by the lenders whether or not accepted by the applicant. 2 “Other” includes loan applications that were either withdrawn or closed for incompleteness.

Home Purchase Loans
In 2021, a total of 4,999 Tracy households applied for conventional loans to purchase homes. The overall loan approval rate was 7 0 percent and 6 percent of applications were denied. A total of 284 applications were submitted for the purchase of homes in Tracy through government-backed loans (e.g., FHA, VA) in 20 21. Among these applications, 64 percent were approved and 9 percent were denied.

Refinance Loans
The vast majority of loan applications filed by Tracy residents in 2021 were for home refinance loans (12,484 applications). About 68 percent of these applications were approved, while 10 percent were denied.

Home Improvement Loans
Within the City of Tracy, home improvement loans were the least likely to be approved.

Approximately 30 percent of home improvement loan applications were denied and 54 percent were

5 2022 HMDA data not yet available at the writing of this Housing Element.

III. Housing Constraints
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III-3 2023-2031 Housing Element
approved by lending institutions in 2021. The high proportion of denials may be explained by the nature of these loans. Most home improvement loans are second loans and therefore more difficu lt to qualify for due to high income-to-debt ratio requirements.

3. Realized Densities and Approval Time
Requests to develop housing at densities below those anticipated in the Housing Element may be a non-governmental constraint to housing development, when the private sector prefers to develop at lower densities than shown in the Housing Element. Over the last few years multi-family projects developed at a typical density of 22 to 24 dwelling units per acre and single -family neighborhoods typically have a gross density of between three to five dwelling units per acre.

Non-governmental constraints can also affect the timing between project approval and requests for building permits. This may be due to delays in securing construction financing, finding contractors, or changes in the housing market since project approval. In Tracy, the estimated average timelin e for building permit issuance is four to 12 months after discretionary review has been approved. The time lapse is largely dependent on the developer’s design professional’s response time to plan check comments and to prepare improvement plans, if necessary, for public right-of-way roads or utilities design.

B. Governmental Constraints
Aside from market factors, housing affordability is also affected by factors in the public sector. Local policies and regulations can impact the price and availability of housi ng and, in particular, the provision of affordable housing. Land use controls, site improvement requirements, fees and exactions, permit processing procedures, among other issues may constrain the maintenance, development and improvement of housing. This s ection discusses potential governmental constraints in Tracy.

1. Transparency in Developmental Regulations
To increase transparency and certainty in the development application process as required by law, the City provides a range of information online for ease of access, some of which is as follows:
• City General Plan:
https://www.cityoftracy.org/home/showpublisheddocument/904/637451218786230000 • City Planning and Zoning Ordinance (Municipal Code Title 10):
https://library.municode.com/ca/tracy/codes/code_of_ordinances • Tracy’s Residential Growth Management Ordinance: https://www.cityoftracy.org/our- city/departments/planning/residential-growth-management • City Specific Plans, Environmental Reports: https://www.cityoftracy.org/our- city/departments/planning/specific-plans-environmental-impact-reports-and-initial-studies • Developmental Review Process and Instructions: https://www.cityoftracy.org/our- city/departments/planning/specific-plans-environmental-impact-reports-and-initial-studies • Master Fee Schedule: https://www.cityoftracy.org/our-city/departments/finance- department/budget-financial-documents/-folder-221
III. Housing Constraints
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2023-2031 Housing Element III-4
• Residential and Commercial and Industrial Pipeline Reports:
https://www.cityoftracy.org/our-city/departments/planning

2. Land Use Controls
The Land Use Element of the General Plan sets forth City policies for guiding local land use development. These policies, together with existing zoning regulations, establish the amount and distribution of land allocated for different uses. Table III-2 lists the land use designations of the General Plan that permit residential uses.

Table III-2: Land Use Designations Permitting Residential Use Land Use
Category Zoning District
Density
(du/acre) Character
Residential
Very Low
(RVL)
Residential Estate Zone (RE) 0.1 to 2.0 Single-family dwelling units are the principal type of housing stock allowed in these areas. Attached units,
zero lot line and clustered housing are also permissible and are encouraged within the overall framework of each community. These housing types can help to meet the
City’s desire to create unique neighborhoods and
enhance the character of the community.

Residential
Low (RL)

Low Density Residential
Zone (LDR)

2.1 to 5.8
Residential
Medium (RM)
Medium Density Cluster
Zone (MDC)

5.9 to 12.0 Includes small lot single-family detached homes, duplexes, triplexes, fourplexes, townhouses, apartments and includes condominiums as an ownership type. Residential Mobile Home Zone (RMH)
Medium Density Residential
Zone (MDR)
Residential
High (RH)
High Density Residential
Zone (HDR)

12.1 to

25.0 Includes triplexes, fourplexes, townhouses, apartments, and includes condominiums as an ownership type.

Traditional
Residential
(TR)
n/a Varies Applies only in combination with a Specific Plan or other project level plan.

Traditional
Residential –
Ellis (TR-Ellis)
Ellis Specific Plan 4.0 to 9.0 Applies to the Ellis Specific Plan area.

Downtown (D) Central Business District
Zone (CBD), General
Highway Commercial Zone
(GHC), Planned Unit
Development (PUD),
Professional Office and
Medical Zone (POM)

15.0 to

50.0 A mix of retail, office, high-density residential, cultural and public-serving uses on a grid or modified grid, multi- modal street design, with direct pedestrian and bicycle connections to residential neighborhoods.

Village Center
(VC)

12.1 to

25.0 Relatively small retail or mixed-use areas. Allowable uses in Village Centers include, but are not limited to, grocery stores, drug stores, banks, restaurants, retail stores for durable goods, small-scale professional offices or services such as travel agencies, beauty salons, daycare facilities, gyms, parks, and high density residential development,
along with other neighborhood-serving uses.

Commercial
Professional Office and
Medical (POM) and
General Highway
Commercial 9GHC)

12.1 to 25
Multi-family condominiums, fourplexes, garden
apartments, and similar; may include mixed use with
multi-family residential and commercial.

Source: Land Use Element, City of Tracy General Plan, 2011.

Each General Plan land use designation is linked to one or more zone districts. As a result, the development intensity standards for the residential land use designations are dependent on the base zoning. In addition, the development density for the residential land use designations may vary III. Housing Constraints
City of Tracy
III-5 2023-2031 Housing Element
further, depend ing on the nature of development bonuses granted as part of a development approval. There is not a one-to-one correspondence between the City’s General Plan residential land use designations and zoning districts. The General Plan has eight residential land use designations while the Zoning Code has ten zoning districts that allow residential development (Table III-2).

There are also two General Plan land use designations (Traditional Residential and Traditional Residential-Ellis) that are applied only in conjunction with a separate development -level plan (i.e., the Ellis Specific Plan). The City has several other Specific Plans that allow for the var ious General Plan residential land uses. These are discussed later in this chapter.

Growth Management Ordinance
The City of Tracy adopted the residential Growth Management Ordinance (GMO) and the GMO Guidelines in 1987. The GMO was amended from time to ti me with significant amendments occurring in 1994, 2000, 2009, 2012, 2013, 2014 and 2015. Growth management in the City is intended to:
• Achieve a steady and orderly rate of residential growth in the City, and encourage diverse housing opportunities balance d with the City’s obligation to provide public facilities and services with available fiscal resources;
• Regulate the timing and annual amount of new development projects, so that necessary and sufficient public facilities and services are provided, and so that new development projects will not diminish the City’s level of service standards; • Encourage concentric (contiguous) growth of the City; • Encourage development which will efficiently utilize existing, and planned future, public facilities;
• Encourage a balance of housing types in the City which will accommodate a variety of persons, including affordable housing projects which will accommodate persons of very low, low, and moderate income, and persons on limited or fixed incomes; • Implement and augment the City policies related to the regulation of new development as set forth in the General Plan, specific plans, City ordinances and resolutions, master plans, finance and implementation plans, and design documents.

Under the GMO, builders must obtain a Residential Growth Allotment (RGA) to secure a residential building permit. The GMO limits the number of RGA’s and building permits to an average of 600 housing units per year with a maximum of 750 units in any single year. The maximum of 750 units includes an annual allocation of 150 units reserved specifically for affordable housing (Affordable Housing Exception). Any of the 150 RGAs not used by affordable housing projects become available to market rate projects. The GMO is not intended to limit the production of affordable housing, small projects, or rehabilitation ; therefore, a number of exemptions and exceptions were included in the GMO. The number of building permits issued to projects that meet the following requirements is not limited by the GMO:
• The rehabilitation or remodeling of an existing structure or conversion of apartments to condominiums.
• The replacement of legally established dwelling units that were demolished.

III. Housing Constraints
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2023-2031 Housing Element III-6
• Model homes for a development project when the number of model homes are either: lesser of 20 percent of the total dwelling units or seven dwelling units per project. • The project is a fourplex or lesser number of dwelling units developed on a single existing lot.
• The project is an accessory dwelling unit.

Residential projects e xempt from the GMO are not counted toward the 600 annual average or the 750 annual maximum. Exemptions for active adult residential uses (a type of senior housing) are allowed in the GMO; however, these projects must obtain active adult residential allotments through a ballot measure. RGAs and building permits for active adult residential allotments are not counted or included in the annual 600 average or 750 maximum.

The number of building permits available each year as Affordable Housing Exceptions is set at a maximum of 150. The maximum of 150 was put in place through Measure A, approved by Tracy voters; therefore, the text in the GMO cannot be amended without another ballot initiative approved by voters. The City of Tracy has provided Affordable Housing Project Exceptions to all residential developers who have applied for them.

Notably, the City adopted an amendment to the Growth Management Ordinance in 2015 that would ensure the RHNA could be entirely accommodated, notwithstanding the numerical limits stated in Measure A or the GMO. RGAs and building permits related to the RHNA exemption are not counted or included in the 750 annual maximum but are counted and included in the 600 annual average.

The following discussion summarizes the substantial amendments made to the GMO since its adoption in 1987:
2009 Revisions
The GMO and the accompanying GMO Guidelines were modified in 2009 to minimize the prominence of RGAs in the development proce ss. Since RGAs cannot be issued until after a Tentative Subdivision Map, Vesting Tentative Subdivision Map or (in the case of multi -family projects) a Development Review permit is approved, RGAs have effectively become a procedural precursor to building permit issuance and their role to ensure adequate provision of public facilities and services is minimal.

Accordingly, RGAs are not “carried over” because the provision of public services and utilities has already been reviewed with approval of the project’s discretionary approval and the public facilities finance and implementation plan. The fact that RGAs cannot be “carried over” has no effect on the cost of allocations or the ability to accommodate the City’s RHNA. The costs associated with residential development are outlined in the project’s finance and implementation plan or the City’s Infrastructure master plans and fee schedule , not through RGA allocations. With respect to the supply and availability of RGAs, the fact that RGAs cannot be “carried over ” has no effect on the supply or availability of building permits to accommodate the RHNA because carryovers would have no relationship to the number of available building permits. 2012 Revisions
The GMO was amended in 2012 to allow the Ellis and Tracy Hil ls projects priority access to up to 600 RGAs per year. The 2009 revision also established “Primary Residential Growth Areas,” which are given first priority (aside from projects vested under any previous GMO Guidelines) when III. Housing Constraints
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III-7 2023-2031 Housing Element
issuing building permits. An a mendment to the GMO in 2012 clarified the order of priority allocations for RGAs.
2013 Revisions
The 2009 GMO amendment defined Affordable Housing as a very low, low, or moderate income unit deed restricted for 55 years. The 2013 GMO amendment reduced this affordability restriction to ten years.
2014 Revisions
Resolution 2014-145, adopted by the City Council on September 2, 2014 repealed the GMO Guidelines adopted in 2012 and established new Guidelines. The revised Guidelines addressed the following components:
• Residential Growth Allotment and Building Permit activities including tracking and forecasting of all RGAs and Building Permits
• RGA Exemptions
• RGA issuance including application requirements, deadlines, expirations • System for Allocation of RGAs/Building Permits
The GMO Guidelines include standards for application and eligibility requirements, affordable housing project exceptions, annual report r equirements, RGA allocation criteria and timelines among others. The allocation requirements are:
• Primary Growth Areas. Primary Growth Areas (which includes most of the existing City limits) Subject to the requirements of the GMO and these Guidelines, Primary Area projects shall be entitled to receive, at the beginning of each allocation cycle:
o In years where 750 RGAs may be allocated, the Primary Growth Areas shall be entitled to receive 100 RGAs,
o In years where 600 RGAs may be allocated, the Primary Gro wth Areas shall be entitled to receive 80 RGAs.
• Development Agreements. Development Agreement projects may receive allocations as specifically set forth in the applicable development agreement subject to the provisions in these Guidelines. In any conflict between the development agreement and these Guidelines, the development agreement provisions shall control.
• Tracy Hills and Ellis Specific Plan Projects. The following specific plan projects, more fully described in the General Plan and subject to the requ irements of the GMO and these Guidelines, shall be entitled to receive, at the beginning of each allocation cycle:
o In years where 750 RGAs may be allocated, Tracy Hills shall be eligible to receive 406 RGAs and Ellis shall be eligible to receive 194 RGAs.
o In years where 600 RGAs may be allocated, Tracy Hills shall be entitled to receive 325 RGAs and Ellis shall be entitled to receive 155 RGAs.
o If either Tracy Hills or Ellis receives less than the number of RGAs described above, the difference between the nu mbers of RGAs allocated and the numbers of RGAs described above shall be reserved.

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2023-2031 Housing Element III-8
• Other Projects. "Other Projects" development sites identified in the Genera l Plan Objective LU 1.4 that are not within the Primary Areas as defined in these GMO Guidelines . Subject to the requirements of the GMO and these Guidelines, the Other Projects shall be entitled to receive, at the beginning of each allocation cycle:
o In years where 750 RGAs may be allocated, Other Projects shall be entitled to receive 50 RGAs per year
o In years where 600 RGAs may be allocated, Other Projects shall be entitled to receive 40 RGAs per year
The GMO Guidelines provide a high level of certainty and predictability for development. In fact, the GMO process only occurs a fter Tentative Map or other discretionary development approval.

This allows projects that are closer to obtaining building permits to obtain RGAs and discourages more speculative projects from obtaining RGAs before the project is prepared to use them. Also, the City publishes a spreadsheet identifying all RGA applications being considered, which results in a high level of transparency and predictability in determining a project’s chances for approval. The Guidelines are made available on the City’s website.
2015 Revisions
The 201 5 amendment allowed the City to issue building permits in excess of those allowed through the GMO in order to meet the City’s RHNA, as required by the State Department of Housing and Community Development (HCD). The maximum number of building permits issued may be the limit prescribed in the GMO (in general, 600 annual average or 750 per year max) or the number of units identified in the RHNA (by income category), whichever is higher. The City Ordinance (No. 1201) related to these cha nges was adopted in November 2015. Residential Growth Allotment Allocation Process
The City’s Growth Management Ordinance, as amended, sets a schedule of allocating RGAs once per year, with the application deadline on the first Thursday of September, and the allocations to be used to obtain a building permit during the following calendar year. The only exceptions to this schedule occur with applications for affordable housing units (to be processed immediately as received) and for Development Agreement projects with timelines as determined within each agreement.

Applications for RGAs are due the first Thursday in September each year. Completeness determinations are made within 30 days. Allocations are made by the Growth Management Board (the City Manager, the Development Services Director, and the Operations and Utilities Director) before the end of that same year in order to permit the use of the RGAs to obtain building permits in the following calendar year.

The process to review applications and allocate RGAs would typically last less than 60 days. This simple, predictable process allows residential developers to wait until near the end of the calendar year (just prior to the year they intend to begin obtaining building permits) to obtain RGAs. This allows maximum flexibility for developers to schedule their entitlement process to coinci de with market opportunities.

Furthermore, if a developer obtains Tentative Map approval in the early or mid -portion of the year before they intend to obtain building permits, they may work on their improvement plans, final map, grading, utilities, streets, and other in-tract improvements prior to or concurrent with applying for and obtaining RGAs.

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If this program proves inconvenient for developers in the future, GMO Guidelines include provisions for periodic revisions. This Section acknowledges, in part, t hat the City recognizes the GMO Guidelines must be adaptable to evolving needs related to developers’ timing or other issues.

Amending the RGA allocation process by adding a second allocation cycle during the year, for example, would only require a Resolut ion of the City Council to modify the GMO Guidelines , and not a change to the Growth Management Ordinance.

The approval process for RGA issuance relates to the other development applications in that RGAs are required prior to building permit issuance but a re not required prior to other approvals. The cumulative impact on timing and costs of development resulting from the RGA allocation process is that projects have the ability to wait until they are ready to develop before obtaining RGAs. A typical subdivision map has a “life” of many years, which can be extended at regularly scheduled public meetings of the Planning Commission or City Council throughout the year. The costs associated with the RGA process (RGA application fee) are not incurred until the applicant decides to move forward with their project and obtain RGAs.

Applications for RGAs are only considered for projects that have approved Tentative Subdivision Maps or other necessary project approvals, if no subdivision will occur. This ensures that the Growth Management Board only considers the allocation of RGAs to projects that have access to water, sewer, storm drainage, and other requisite public facilities and services. The RGAs are allocated based on the criteria as listed in the GMO guidelines.

RGA allocations are determined at a public hearing by the Growth Management Board, which consists of the City Manager, Development Services Director, and the Operations and Utilities Director.

The GMO approval process allows both small and large re sidential projects to obtain adequate RGAs. Projects of over 500 units have successfully been built in the past, and several very large ongoing projects are set to obtain their RGAs over the course of a number of years. The City’s Residential Pipeline Report (2023) shows the status on several large-scale projects:
• Ellis Phases 2 and 3 are approved and under construction with a total of 664 residential units. • Tracy Hills Phases 1A and 1B are approved and under construction with 1,637 units while Phase 2 has been approved for 1,517 units.
• Tracy Village has been approved for 594 units.
• The Avenues project has been approved for 480 units.

GMO and Affordability
The incremental effect on housing costs of limiting the number of residential units per year within a city depends on the position of that city economically and demographically within the region, the price (and relative price) of land, the existing local supply and types of housing, the regional and local demand for housing, and the relative level of residential choice and mobility in the area, among other elements beyond the scope of a housing element. The City does not believe that, to date, the GMO has had an effect on the cost of housing.

Historically, there are more RGAs (Residential Growth Allotments) and building permits available than the market can absorb in Tracy. Furthermore, the 2015 amendment to the GMO that established the RHNA exemption resulted in hundreds of additional building permits being made available in a calendar year than the 600 an nual average or 750 annual limit. Therefore, the annual limits in the III. Housing Constraints
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past and in the foreseeable future have not affected (and will not affect) the supply or cost of housing.

The RHNA exemption provision will effectively result in a rolling average for ea ch RHNA cycle in that to the extent that the City does not achieve its RHNA in any calendar year, the number of permits to achieve the RHNA will be available in each succeeding year.

On March 2, 2021, the City Council approved a scope of work with PlaceWor ks, Inc to work with the City on an action plan to address affordable/workforce housing, one item of which would allow more RGAs to be allocated to affordable housing projects but requires a change to Measure A with voter approval to implement: Provide additional market-rate Residential Growth allotments (RGAs) for projects that include a specified percentage of affordable units. Other action items are related to increased density allowances and other direct developer support efforts for affordable housing projects. The City secured grant funding in 2020 to begin work on these efforts . This Housing Element includes a program to outline the City’s planned efforts to expand affordable and workforce housing opportunities in the community.

Planned Unit Development (PUD) Zone
In 2017, Ordinance 1236 replaced Article 13 in the Municipal Code that addressed the Planned Unit Development (PUD) Zone . The PUD Zone allows a single zoning district to combine a variety of uses, densities, and design characteristics. It applies to projects that are of substantial public benefit or are in furtherance of a City objective. Projects must have one or more of the following characteristics: (i) common or public open space areas, (ii) the maintenance of common spaces at the expense of those directly benefitting from it, (iii) a mixture of uses, (iv) a variety of housing types and a mixture of densities and lot sizes in residential areas, (v) preservation of natural amenities and/or (vi) creation of additional amenities. Maximum height and bulk requirements, as well as the minimum setback, yard, parking and loading requirements are established for each PUD Zone.

Density Bonuses
State law requires the provision of certain incentives for residential develop ment projects that set aside a certain portion of total units to be affordable to lower and moderate income households.

Over the last few years, there have been many statutory changes to state density bonus law. Changes include new provisions for projects containing solely affordable units, and increase of the maximum allowable density for other projects from 35 percent to 50 percent. The City has not updated its Density Bonus Ordinance (Article 36.5 of the Zoning Code) since its adoption in 2008. Therefore , staff currently references state density bonus law rather than the Zoning Code when reviewing density bonus applications. This Housing Element includes a program to amend the City’s Density Bonus Ordinance to be consistent with state law, including:
• AB 1763 (Density Bonus for 100 Percent Affordable Housing) – Density bonus and increased incentives for 100 percent affordable housing projects for lower income households. • AB 1227 (Density Bonus for Student Housing) – Density bonus for student housing development for students enrolled at a full -time college, and to establish prioritization for students experiencing homelessness.
• AB 2345 (Increase Maximum Allowable Density) – Revised the requirements for receiving concessions and incentives, and the maximum density bonus provided.

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Cumulative Impacts of Local Ordinances
Tracy’s local land use ordinances include the Growth Management Ordinance (GMO), Planned Unit Development Zone (PUD) and Density Bonus. The City has included components to each of th ese ordinances to minimize any potential negative impacts on residential land use development:
• Growth Management Ordinance - Historically, there are more RGAs (Residential Growth Allotments) and building permits available than the market can absorb in Tracy.

Furthermore, the 2015 amendment to the GMO that established the RHNA exemption resulted in hundreds of additional building permits being made available in a calendar year than the 600 annual average or 750 annual limit. Therefore, the annual limits in the past and in the foreseeable future have not affected (and will not affect) the supply or cost of housing.

The RHNA exemption provision will effectively result in a rolling average for each RHNA cycle in that to the extent that the City does not achieve its RHNA in any calendar year, the number of permits to achieve the RHNA will be available in each succeeding year. • Planned Unit Development (PUD) –The PUD Zone allows a single zoning district to combine a variety of uses, densities, and design characteristics. It applies to projects that are of substantial public benefit or are in furtherance of a City objective. Development st andards are flexible and established for each PUD development. The combination of community benefits and flexible standards enhances the use of PUDs in Tracy. • Density Bonus - The City has not updated its Density Bonus Ordinance (Article 36.5 of the Zoning Code) since its adoption in 2008. Therefore, staff currently references state density bonus law rather than the Zoning Code when reviewing density bonus applications. This Housing Element includes a program to amend the City’s Density Bonus Ordinance to b e consistent with state law. Updating this ordinance will remove potential barriers for the use of density bonuses where applicable for residential projects.

Specific Plans
The City has three specific plan areas to accommodate future residential growth. Brief descriptions of these plans are included below.

Tracy Hills Specific Plan
Upon buildout, Tracy Hills will consist of 7,265 dwelling units and will provide a distinct hierarchy of housing types that accommodate a wide range of housing objectives, buyer needs , and affordability. Planned housing types include custom homes, production homes, smaller detached homes, town-home units, condominiums and apartments. Table III-3 summarizes the permitted uses within the Specific Plan area.

Table III-3: Tracy Hills Specific Plan Permitted and Conditionally Permitted Residential Uses Land Use Zones

RE-TH LDR-TH MDR-TH HDR-TH
Single-Family Dwellings P P P P
Two-Family Dwellings -- P P P
Multiple-Family Dwellings -- -- P P
Residential Care Facilities (<6 persons) P P P P
Residential Care Facilities (>6 persons) C C C C
Mobilehome Parks -- -- -- P

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As of December 31, 2022, 1,952 units have been constructed in Tracy Hills.

Ellis Specific Plan
The Ellis Specific Plan (ESP) was originally approved by the City Council on January 22, 2013. This 321-acre specific plan area is located in the southern portion of Tracy. Since the original approval, a number of ordinances were adopted to amend the ESP. The most recent was in May 2021 (Ordinance No. 1305) when the ESP was amended to incorporate the Avenues Specific Plan area, which had been approved by the City Council in 2018. The 95-acre Avenues Specific Plan area shared a common boundary with the ESP project site. As a result of this amendment, the ESP is now approximately 416 acres. As amended, the ESP area now has two “Neighborhoods”, the Ellis Neighborhood and the Avenues Neighborhood.

The Ellis Neighborhood is characterized by three residential neighborhoods that are all in close proximity to the Village Center: the Village Neighborhood, Garden Neighborhood, and Town & Country Neighborhood. The Village Center will be built out over time in response to market demand. The following is a brief description of the various residential land use designations that make up the Ellis Neighborhood.
• Residential Estate (RE): The approximate 17 -acre area with this land use designation is intended to have nine large lots rangi ng in size from approximately one to two acres. The number and size of these lots is regulated by the San Joaquin County Airport Land Use Plan (ALUCP).
• Residential Mixed Low (RML): The Residential Mixed Low designation is intended to provide for relatively low-density housing, including single-family, detached one- and two- story houses. The allowed density will range from a minimum of 2.1 to a maximum of 8 dwelling units per acre (du/acre).
• Residential Mixed Medium (RMM): The Residential Mixed Medium desig nation is intended to provide for medium -density housing, including single -family detached and attached units, and will consist of one - and two -story houses and two - and three -story townhouses. Densities in this land use category will range from a minimum of 4 to a maximum of 16 dwelling units per acre (du/acre).
• Residential Mixed High (RMH): The Residential Mixed High designation is intended to provide for high -density housing. The units will be single - and multi-family detached and attached units, and wil l consist of compact housing, townhouses, apartments, condominiums, and live/work units generally located adjacent to commercial uses.

Residential Mixed High densities will range from a minimum of 8 to a maximum of 25 du/acre.
• Village Center (VC): The Village Center designation will accommodate up to 60,000 square feet of nonresidential uses in the Village Center, as well as up to 50 high -density residential units, possibly in a mixed -use configuration with residential over commercial. Residential units in the Village Center may be apartments, townhouses, condominiums, and/or live/ work units.

The 95-acre Avenues Neighborhood area is designated for low density residential, which permits

2.1 to 5.8 dwelling units per acre. The overall site density is between four to five dwelling units per gross acre.

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Table III-4 summarizes the permitted uses allowed within each land use category in the ESP.

Table III-4: Ellis Specific Plan Permitted and Conditionally Permitted Residential Uses Land Use Zones
Village Center Residential Mixed Residential Estates Residential Low Attached Single-Family P P -- --
Detached Single-Family -- P P* P
Multiple-Family P P -- --
Live/Work P -- -- --
Note: *Permitted, subject to the restrictions of the San Joaquin County Aviation System Airport Land Use Compatibility Plan (ALUCP).

As of December 31, 2022, 700 units have been constructed within the Ellis Specific Plan area.

Tracy Village Specific Plan
Approved in May 2018, the Tracy Village Specific Plan (TVSP) is for a 135 -acre age -qualified residential community with 590 single family homes . Located at the southeast corner of Corral Hollow and Valpico Road in the central portion of Tracy, the TVSP site is surrounded on two sides by existing residential development and on the north side by a vacant lot zoned single family. The TVSP includes development standards, design guidelines , and infrastructure and services plan for the single-family homes. As of May 2023, 57 units have been constructed within the Tracy Village Specific Plan area.

3. Residential Development Standards
Outside the specific plan areas, the City regulates the type, location, density, and scale of residential development primarily through the Zoning Ordinance. The following zoning districts allow residential uses:

Residential Estate Zone (RE) – 0.0 to 2.0 du/acre – The Residential Estate (RE) Zone is characterized by open space and very low density development. This zone also allows for educational, cultural, institutional, and recreational uses serving local residential areas.

Low Density Residential Zone (LDR) – 2.0 to 5.8 du/acre – The Low Density Residential (LDR) Zone is intended to be utilized in the areas designated low-medium density residential. Mobile homes on individual lots are permitted, and mobile home parks are permitted through issuance of a conditional use permit, as are convalescent hospitals, rest and nursing homes, and board and care facilities, and planned residential developments of one -family dwellings on individual lots.

Medium Density Cluster Zone (MDC) – 5.9 to 12.0 du/acre – The Medium Density Cluster (MDC) Zone classification is designed to provide for single-family, two-family or three-family dwellings, dwelling groups, and supporting uses. Dwelling group is defined as a group of two or more detached dwellings located on a parcel of land in one ownership and having one yard or court in common. Crop and tree farming is also permitted by right. Condominiums, one- and two-family residential planned developments, mobile home parks and subdivisions, and Single-Room Occupancy Facilities are permitted through the issuance of a conditional use permit. A minimum of 3,500 square feet of net lot area for each dwelling unit is required, and not more than 45 percent of the net lot area shall have buildings.

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Residential Mobile Home Zone (RMH) – up to 10.0 du/acre – The Residential Mobile Home (RMH) Zone is to provide an exclusive district designation to land for use as mobile home parks, and to establish rules and regulations by which the City may regulate the standards of lots, yards, or park areas, landscaping, walls or enclosures, signs, access, and vehicle parking.

A minimum 2,400-square-foot lot is required for each unit. Each mobile home park is required to provide 1,000 square feet of usable open space plus 150 square feet for each individual trailer space if the mobile home park provides more than 10 spaces.

Medium Density Residential Zone (MDR) – 5.9 to 12.0 du/acre – The Medium Density Residential (MDR) Zone is designed to provide for apartments, multiple -family dwellings, dwelling groups, and supporting uses. One -, two -, an d multiple-family dwellings are permitted by right in this zone, as are dwelling groups and apartment houses, boarding and rooming houses, and crop and tree farming. Mobile home parks and subdivisions, condominiums and p lanned residential developments, board and care facilities, and rest or nursing homes are permitted through issuance of a conditional use permit. A minimum 2,900- square-feet lot area is required for each unit, and buildings shall not cover more than 45 percent of the lot. In addition, residential uses proposed for this zone must provide 100 square feet of usable open space for each of the first 10 dwelling units, 50 square feet for each of the second 10 units, and 25 square feet for each unit in excess of 20. Usable open space is defined as lawn, pool, or a garden courtyard, and shall not include the required front yard or street side yard, off-street parking, driveways, or service areas.

High Density Residential Zone (HDR) – 12.0 to 25.0 du/acre – The High Density Residential (HDR) Zone classification is designed to provide for single-family, two -family dwellings, apartments, multiple -family dwellings, dwelling groups, and supporting uses. Multiple - family dwellings, dwelling groups, apartments, and boarding and rooming houses are allowed by right. Crop and tree farming and single -family and two-family dwellings are also allowed by right in the High Density Residential zone. Mobile home parks and subdivisions, condominiums and planned residential developments are allowed via a use permit. There is no height limit in the HDR zone, but at least 1,400 square feet of net lot area is required of each unit. The maximum building coverage is 45 percent and the same usable open space required for development in the MDR district is required for the HDR district.

Professional Office and Medical Zone (POM) – 12.0 to 25.0 du/acre – The Professional Office and Medical (POM) Zone specialized classification is designed to provide for local serving offices supporting uses and facilities consistent with the General Plan. This zone permits the development of multiple family dwelling units, with the exception of apartment hotels.

General Highway Commercial (GHC) – The General Highway Commercial (GHC) Zone is to provide areas for commercial activities which are automobile-oriented or for those uses which seek independent locations outside shopping centers or other business clusters. Multiple - family dwellings are also conditionally permitted in this zone without a maximum prescribed density.

Central Business District (CBD) - 50 du/ac – The Central Business District (CBD) Zone is to provide areas in which pedestrian-oriented establishments, commercial business, service, and office facilities for the convenience of residents of the entire City may locate. Multiple -family dwellings are also conditionally permitted in this zone at a density of up to 50 units per acre, as prescribed in the General Plan.

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Development standards specific to each zone district are designed to protect and promote the health, safety, and general welfare of residents as well as implement the policies of the General Plan. These standards also serve to preserve the character and integrity of existing neighborhoods. Specific residential development standard s are summarized in Table III-5. Generally, development standards can limit the number of units that may be constructed on a particular piece of property.

These include density, minimum lot and unit sizes, height, and open space requirements.

Table III-5: Residential Development Standards
Zoning
District
Maximum
Building Height
Minimum Net
Lot Area
(sq. ft.)
Minimum Lot
(feet)
Setbacks
(feet)
Maximum
Lot
Coverage Width Depth Front Rear Side
RE 35’ (2½ stories) 15,000 75 n/a 50 30 20 30%
LDR 5,600 56 90 15 10 3-10 45%
MDC 3,500 45 n/a 4-10
RMH 35’ (2 stories) 2,400 35 60 5 5 5 n/a
MDR 35’ (2½ stories) 6,000 60 n/a 15-20 10 3-10 45%
HDR none n/a 15-20 10 50%
POM 7,500 70 n/a 10 10
GHC none n/a n/a 15 15 15 none
CBD none none
Source: City of Tracy Zoning Ordinance, 2023.
n/a = No prescribed minimum or maximum standard.

Parking
Parking requirements for single -family and multi-family residential uses in Tracy are summarized in Table III-6. Although the provision of off -street parking can increase the cost of housing, Tracy’s standards are reasonable as requirements for multi -family developments are equal to or less than requirements for single -family detached dwellings. Furthermore, given the commute pattern of residents, the parking requirements match the demand in the community. Guest space requirements for multi-family developments are also reasonable because these types of developments do not have private driveways for each unit to accommodate parking for guests as is required for new single - family homes. Nonetheless, because the increased cost of off -street parking can make financing the development of senior housing and housing affordable to lower and moderate income households more difficult, reduced parking and other incentives, concessio ns, or waivers and modifications of development standards are available for developers of affordable projects that are eligible for a density bonus.

Table III-6: Parking Requirements
Type of Residential Development Required Parking Spaces Single-Family Residential Two non-tandem enclosed (in garage) spaces per unit* Multi-Family Dwellings
Studio units and one-bedroom units One and one-half spaces per unit, one of which shall be covered, plus one additional space marked "Guest" per every five units Two-bedroom or more units Two spaces with one covered per unit, plus one space marked "Guest" for every five residential units
Source: City of Tracy Zoning Ordinance, 2023.
* Except for housing designated by the City as in a very low or low income housing program where only one of the two spaces per unit is required to be enclosed.

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The City adopted amendments to the Zoning Ordinance to incorporate Affordability by Design principles. For example, any use, including multi -family residential, may request a reduction in required parking based on a study or survey that illustrates that required parking is not warranted.

Applicants may receive up to a 20 percent reduction of the o therwise required number of parking spaces pursuant to T.M.C. Section 10.08.3470(e). The City of Tracy has also relaxed the required distance between structures in the HDR Zoning District from the average height of the two buildings to 10 feet. This has pr ovided for greater flexibility for the allowance and maximum usage of residential sites. Two recent multi-family projects which received parking space reductions are the 264-unit Vela Apartments at 351 E. Valpico Road and the 454-unit Gateway Crossing Apartments at 3480 W. Grant Line Road.

Cumulative Impacts of Land Use Controls
Tracy’s development regulations include parking, building height and lot requirements. While some of these requirements may have an impact on achieving maximum allowable density in certain residential zones, the following shows that the City has or is working to remove these constraints:
• Residential uses in the High Density Residential (HDR) and multi-family uses in the Central Business District (CBD) do not have any maximum height limits; • Density in the CBD is 50 du/are allowing for flexible residential development in the City core;
• Tracy’s parking standards are reasonable as requirements for multi-family developments are equal to or less than requirements for single-family detached dwellings. Furthermore, given the commute pattern of residents, the parking requirements match the demand in the community. In addition, reduced parking and other incentives, concessions, or waivers and modifications of development standards are available for developers of affordable projects that are eligible for a density bonus.
o The City adopted amendments to the Zoning Ordinance to incorporate Affordability by Design principles. For example, any use, including multi -family residential, may request a reduction in required parking based on a study or survey that illustrates that required parking is not warranted.
• As discussed in the next section, programs have been included in this Housing Element to help facilitate housing for a variety of housing types to serve the residents of Tracy.

4. Provision for a Variety of Housing Opportunities
Housing element law specifi es that jurisdictions must identify adequate sites to be made available through appropriate zoning and development standards to encourage the development of a variety of housing types for all economic segments of the population. This includes single -family homes, multi-family housing, second units, mobile homes, and residential care facilities. Table III-7 below summarizes the various housing types permitted within the City’s zoning districts.

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Table III-7: Housing Types by Zone Category
Housing Types RE LDR MDC RMH MDR HDR POM GHC CBD
Single-Family Dwelling P P P P P P*
Accessory Dwelling Units P P P P P
Manufactured/Mobile
Homes

P P P P
Mobile Home Parks C C C P C C
Multi-Family P P P P C P*
Residential Care Facility
(less than 6 persons)
* * * * * *
Residential Care Facility
(more than 6 persons)
* * * * *
Emergency Shelter P P
Transitional Housing P P P P P
Supportive Housing P P P P P
Single-Room Occupancy C P P
Source: City of Tracy Zoning Ordinance, 2015.

Notes: P = Permitted C = Use Permit Required; *In the CBC zone, residential uses are not permitted on the ground floor with elevations that face certain streets/intersections as outlined in Section 10.08.2380 of the Zoning Code *For information about the City’s policies regarding Residential Care Facilities, please refer to the “Residential Care Facilities” discussion later in this chapter.

Single-Family Dwellings
A “single-family dwelling” is defined in the Zoning Ordinance as a detached building arranged, designed, or used for, and intended to be occupied by, not more than one family, and which building has not more than one primary kitchen and not less than one bathroom. Single-family dwellings are permitted in all of the City’s residential zones, with the exception of the RMH zone.

Accessory Dwelling Unit
As defined in Tracy’s Zoning Ordinance an “Accessory dwelling unit" (ADU) means:
an attached or detached residential dwelling unit that provides complete independent living facilities for one or more persons. It includes permanent provisions for living, sleeping, eating, cooking and sanitation on the same lot as one single-family dwelling is situated. An accessory dwelling unit also includes the following: (1) an efficiency unit, as defined in Health and Safety Code section 17958.1; and (2) a manufactured home, as defined in Health and Safety Code section 18007.

Currently, ADUs are permitted in the RE, LDR, MDC, MDR and HDR zones and in PUD zones that allow residential development. In 2018, Tracy amended the Zoning Ordinance ( Ordinance 1254) to comply with the State amendments from January 2017. Since the City’s last ADU ordinance update in 2018, changes to State law (such as AB 68, AB 587, AB 881 and SB 13) have modified requirements to further facilitate and encourage ADU development. The bills modify the fees, application process and development standards for accessory dwelling units, with the goal of lowering barriers to accessory dwelling unit development and increasing overall numbers of accessory dwelling units.

Some of the key provisions include:
• Allowing the development of ADUs on multifamily properties. • Allowing for Junior ADUs , which are units no more than 500 square feet in size and contained entirely within an existing single -family structure. A junior accessory dwelling III. Housing Constraints
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unit may include separate sanitation facilities, or may share sanitation facilities with the existing structure.
• Prohibiting standards related to lot coverage standards, lot size, FAR, or open space that have the effect of limiting ADU development.
• Allowing ADUs within or attached to garages, storage areas, or accessory structures. • Prohibiting maximum sizes for ADUs that are less than 850 square feet (1,000 for units with 2+ bedrooms).
• Increases in the maximum allowable height for ADUs.

To comply with the most recent State laws, a program has been included in this Element to amend Tracy’s Zoning Ordinance provisions related to ADUs and Junior ADUs.

Since 2018, the City has issued the following number of ADU building permits on an annual basis:
• 2018 – 7 permits
• 2019 – 18 permits
• 2020 – 10 permits
• 2021 – 54 permits
• 2022 – 120 permits
The City has six pre -approved ADU plans that streamline the process and reduce preconstruction fees. The plans range from a 600-square foot studio to a 3 bedroom, 1 bath 1200-square foot unit. The plans, electronic plan check requirements and other resources and information are available on the City’s website. The first submittal for permits with these pre-approved plans is 20 business days.

Manufactured Homes, Mobile Homes and Mobile Home Parks
Mobile homes can be an affordable housing option for low and moderate income households. The California Department of Finance reported in 2022 that Tracy’s housing stock included 47 3 mobile homes, or approximately two per cent of the total housing units in the City. A mobile home built after June 15, 1976, certified under the National Manufactured Home Construction and Safety Act of 1974, and built on a permanent foundation may be located in any residential zone where a conventional single-family detached dwelling is permitted subject to the same restrictions on density and to the same property development regulations. Tracy’s Zoning Ordinance permits the development of manufactured homes in the RE, LDR, MDR, and HDR zones.

The City’s Zoning Ordinance conditionally permits mobile home parks in all of its residential zones, with the exception of the RMH zone where they are permitted by right.

Multiple-Family Housing
According to the California Department of Finance , multiple-family housing comprised approxi - mately 16 percent of the housing stock in Tracy in 2022 (Needs Assessment, Table II-31). Multiple- family housing is permitted within the MDC, MDR, HDR and POM zones. Conditional use permits are required for the con struction of multiple -family housing in the GHC and CBD zone districts.

Residential units above the ground floor in CBD zone districts require a conditional use permit. The City’s workforce/affordability work plan includes a code amendment to make them per mitted by right.

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Residential Care Facilities
The Lanterman Developmental Disabilities Services Act (Sections 5115 and 5116) of the California Welfare and Institutions Code declares that mentally and physically disabled persons are entitled to live in normal residential surroundings. The use of property for the care of six or fewer persons with mental disorders or disabilities is required by law. A State-authorized, certified or authorized family care home, foster home, or group home serving six or fewer per sons with disabilities or dependent and neglected children on a 24-hour-a-day basis is considered a residential use to be permitted in all residential zones. No local agency can impose stricter zoning or building and safety standards on these homes (commonly referred to as “group” homes) of six or fewer persons with disabilities than are required of the other permitted residential uses in the zone.

In accordance with the Lanterman Act, all residential care facilities serving six or fewer persons are permitted without discretionary review in Tracy wherever a single -family home is permitted. In addition, the City allows residential care facilities of seven or more persons in all of its residential zones with a Conditional Use Permit. Despite this policy, the C ity’s Zoning Ordinance makes no specific provisions for residential care facilities of any size. A program action is included in this Housing Element to amend the Zoning Ordinance to address the provisions of residential care facilities.

According to the State Department of Social Services Community Care Licensing Division, as of November 2022, a total of four small residential care facilities for the elderly (with a total capacity of 24 beds) were located in the City in addition to the 77 -bed Astoria Gardens and 180-bed Brookdale facilities. There are ten small adult residential facilities with a combined capacity of 55 beds.

Emergency Shelters
As discussed in the Housing Element Needs Assessment, there were 124 persons counted in the City of Tracy as part of the San Joaquin County 2022 Point -In-Time (PIT) Unsheltered Homeless Count .

This is a 20 percent decrease from the 155 individuals that were counted for the 2019 Point -In-Time count.

Senate Bill 2, enacted in October 2007, requires local governments to identify one or more zoning categories that allow emergency shelters without discretionary review. The statute permits the City to apply limited conditions to the approval of ministerial permits for emergency shelters. The identified zone mu st have sufficient capacity to accommodate at least one year -round shelter and accommodate the City’s share of the regional unsheltered homeless population. Additionally, with the passage of AB 2339 in 2022, the identified zone must be a zone where residen tial uses are permitted or in a nonresidential zone where the city can demonstrate that the emergency shelter would be near necessary amenities and services for homeless individuals.

The City’s Zoning Ordinance permit s the development of emergency shelter s in the MDC, MDR, and HDR zones by right , without discretionary review. Emergency shelters are also subject to the following additional development standards:
• Concentration. An emergency homeless shelter may not be located closer than 300 feet from another emergency homeless shelter.
• On-site resident manager. An emergency homeless shelter shall have a resident, on -site manager.

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The Zoning Ordinance does not specify any parking requirements for emergency shelters. Per Section 10.08.3490 of the Zoning Ordina nce, the Planning Commission has the authority to determine parking requirements for uses not specified. However, AB 139 specifies that local governments may impose a parking requirement, but that it shall only be an amount adequate for parking for shelter staff may not exceed the requirements for residential and nonresidential uses in the same zone.

The City has over 20 acres of vacant land zoned MDC, MDR, and HDR. In addition, the City ’s residential sites inventory identifies 11 acres of vacant MDR and HDR land and 158 acres of land proposed to be rezoned HDR . Adequate capacity would be available to potentially accommodate emergency shelters for the unsheltered homeless in the City.

In May 2020, the City Council adopted the Homeless Strategic Plan (Strat egic Plan). This Strategic Plan identified four primary goals:
• Increase housing options in Tracy
• Increase access to coordinated support services for people experiencing homelessness • Develop action plans for engaging with people experiencing homelessness • Enact specific strategies for vulnerable subpopulations experiencing homelessness The Strategic Plan includes objectives and a detailed implementation plan for each of these goals.

Some of the implementation measures focused on emergency, transitional and pe rmanent housing options in the City. Preparation of the Strategic Plan included a variety of stakeholders. A detailed list of available State resources was also included. The City’s Homeless Advisory Committee, which is comprised of two seated City Council members, meets four times a year and helps to implement the Strategic Plan.

According to the Strategic Plan, there are 28 local service providers that make up the Tracy Community Homeless Task Force. The services offered include shelters; subsidized hous ing; community meals; food delivery to encampments; food pantries, markets, and produce; and hygiene programs.

In September 2020, the City Council gave direction to move forward with the development of plans for the design and construction of a temporary emergency housing facility. The site is located on 4.8 acres at 370 W. Arbor Avenue. The 6,300 square -foot low -barrier navigation facility will accommodate people, pets, and possessions and is anticipated to provide nightly shelter for approximately 68 residents within a congregate sprung shelter. Site work is underway , and the Council authorized a rebid for the project in August 2022 (Resolution 2022-121). This resolution also directed the City Manager to take immediate and emergency actions necessary to implement interim housing solutions for Tracy’s unsheltered population.

While the City is working on the Low Barrier Navigation Center on Arbor Avenue, the Zoning Ordinance does not add ress this type of facility . AB 101 requires cities to allow a Low Barrier Navigation Center development by right in areas zoned for mixed uses and nonresidential zones permitting multifamily uses if it meets specified requirements. A “Low Barrier Navigatio n Center” is defined as “a Housing First, low -barrier, service-enriched shelter focused on moving people into permanent housing that provides temporary living facilities while case managers connect individuals experiencing homelessness to income, public be nefits, health services, shelter, and housing.” Low Barrier shelters may include options such as allowing pets, permitting partners to share living space, and providing storage for residents’ possessions. AB 101 also sets a timeline for III. Housing Constraints
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jurisdictions to ac t on applications for Low Barrier Navigation Center developments. The requirements of this bill are effective through the end of 2026, at which point they are repealed.

The Housing Plan of this Housing Element includes a program to amend the Zoning Ordina nce to allow Low Barrier Navigation Centers by right in areas zoned for mixed use and nonresidential zones permitting multi -family uses as well as to meet the parking requirements for emergency shelters set out in AB 139.

Transitional and Supportive Housing
State law (AB 2634 and SB 2) requires local jurisdictions to allow for transitional and supportive housing subject to the same standards as similar residential uses within the same zone . Under Housing Element law, transitional housing means buildings con figured as rental housing developments, but operated under program requirements that require the termination of assistance and recirculation of the assisted unit to another eligible program recipient at a predetermined future point in time that shall be no less than six months from the beginning of the assistance (California Government Code Section 65582(h)).

Supportive housing means housing with no limit on length of stay, that is occupied by the target population and is linked to an onsite or offsite ser vice that assists the supportive housing resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. Target population means persons with low incomes who have one or more disabilities, including mental illness, HIV/AIDS, substance abuse, or other chronic health condition, or individuals eligible for services provided pursuant to the Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with Section 4500) of the Welfare and Institutions Code) and may include, among other populations, adults, emancipated minors, families with children, elderly persons, young adults aging out of the foster care system, individuals exiting from institutional sett ings, veterans, and homeless people (California Government Code Sections 65582(f) and (g)).

The City of Tracy Zoning Ordinance has a definition of transitional housing and supportive housing.

Transitional housing is defined as “a building configured for rental housing, but operated under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at some predetermined future point in time that is not less than six months from beginning of assistance. Transitional housing that is provided in single-family, two- family, or multi -family dwelling units will b e permitted, conditionally permitted or prohibited in the same manner as other single-family, two-family, or multi-family dwelling units under this code.” Supportive housing is defined as “housing with no limit on the length of stay, that is occupied by persons with disabilities and individuals or families that are homeless at the time approved for occupancy, and that is linked to on -site services that assist the supportive housing resident in retaining the housing, thereby improving the residents health s tatus, and maximizing his or her ability to live and, when possible and applicable, work in the community. Supportive housing that is provided in single -family, two -family, or multi -family dwelling units will be permitted, conditionally permitted or prohib ited in the same manner as other single -family, two -family, or multi-family dwelling units under this code.” This definition is not precisely consistent with the Government Code. The City will be amending its Zoning Ordinance to ensure compliance with State law.

The Tracy Zoning Ordinance permits transitional and supportive housing in all residential zones, with the exception of the RMH zone and applies no additional standards or permit requirements to III. Housing Constraints
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these developments that are not applied to other residential development. However, AB 2162 (2018) requires that supportive housing meeting specific criteria to be permitted by right in zones where multi-family and mixed -use developments are permitted. Specific criteria include the size of the project and perc entage set aside for target population, and specified amount of floor area for supportive services, among others. For projects locating within 0.5 mile from transit, no minimum parking requirements may be applied. The Tracy Zoning Ordinance will be amended to include the requirements of AB 2162.

Single Room Occupancy Units (SROs)
SRO units are one-room units intended for occupancy by a single individual. They are distinct from a studio or efficiency unit, in that a studio is a one -room unit that must contai n a kitchen and bathroom. Although SRO units are not required to have a kitchen or bathroom, many SROs have one or the other and could be equivalent to an efficiency unit. AB 2634 mandates that local jurisdictions address the provision of housing options f or extremely low income households — specifically the provision of SROs. In Tracy, SROs are permitted in the MDR and HDR zones and conditionally permitted in the MDC zone.

Farmworker Housing
The California Employee Housing Act requires that housing for six o r fewer employees be treated as a regular residential use. The Employee Housing Act further defines housing for agricultural workers consisting of 36 beds or 12 units be treated as an agricultural use and permitted where agricultural uses are permitted.

The City of Tracy permits crop and tree farming in the A, LDR, MDC, MDR, and HDR zones.

However, farm employee housing is not similarly permitted in these zones. The City’s Zoning Ordinance also has no provisions for employee housing. The City will amend the Zoning Ordinance to include provisions for farm employee housing and employee housing pursuant to the California Employee Housing Act.

Housing for Persons with Disabilities
Both the federal Fair Housing Amendment s Act (FHAA) and the California Fair Employment and Housing Act direct local governments to make reasonable accommodations (i.e. , modifications or exceptions) in their zoning laws and other land use regulations when such accommodations may be necessary to a fford disabled persons an equal opportunity to use and enjoy a dwelling. The City conducted an analysis of the zoning ordinance, permitting procedures, development standards, and building codes to identify potential constraints for housing for persons with disabilities. The City’s policies and regulations regarding housing for persons with disabilities are described below.

Land Use Controls: Under State Lanterman Developmental Disabilities Services Act (aka Lanterman Act), small licensed residential care fa cilities for six or fewer persons must be treated as regular residential uses and permitted by right in all residential districts.

All residential care facilities serving six or fewer persons are permitted without discretionary review in Tracy wherever a single-family home is permitted. All residential zones also allow residential care facilities of seven or more persons with a Conditional Use Permit. The City will amend its Zoning Ordinance to reflect this current policy and fully comply with the provisions of the Lanterman Act.

Definition of Family : Local governments may restrict access to housing for households failing to qualify as a “family” by the definition specified in the Zoning Ordinance. Specifically, a restrictive III. Housing Constraints
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definition of “family” that li mits the number of and differentiates between related and unrelated individuals living together may illegally limit the development and siting of group homes for persons with disabilities, but not for housing families that are similarly sized or situated.6 The City’s current definition of “family” is “one or more persons occupying a single dwelling unit, under no more than one written or oral rental agreement.” This definition may act as a constraint on housing for persons with disabilities. For example, there are some service providers that require individual lease agreements for residents within a residential care facility or transitional housing. The City will revisit this definition of family to ensure that it places no negative impacts for persons with disabilities.

Building Codes: The Building and Safety Division actively enforces 20 22 California Building Code provisions that regulate the access and adaptability of buildings to accommodate persons with disabilities. No unique restrictions are in place that would constrain the development of housing for persons with disabilities. Government Code Section 12955.1 requires that 10 percent of the total dwelling units in multi -family buildings without elevators consisting of three or more rental units or four or more condominium units subject to the following building standards for persons with disabilities:
• The primary entry to the dwelling unit shall be on an accessible route unless exempted by site impracticality tests.
• At least one powder room or bathroom shall be located on the primary entry level served by an accessible route.
• All rooms or spaces located on the primary entry level shall be served by an accessible route.

Rooms and spaces located on the primary entry level and subject to this chapter may include but are not limited to kitchens, powder rooms, bathrooms, living rooms, bedrooms, or hallways.
• Common use areas shall be accessible.
• If common tenant parking is provided, accessible parking spaces are required.

Reasonable Accommodation : Both the Fed eral Fair Housing Act and the California Fair Employment and Housing Act direct local governments to make reasonable accommodations (i.e. , modifications or exceptions) in their zoning laws and other land use regulations when such accommodations may be necessary to afford disabled persons an equal opportunity to use and enjoy a dwelling. For example, it may be reasonable to accommodate requests from persons with disabilities to waive a setback requirement or other standard of the Zoning Ordinance to ensure that homes are accessible for the mobility impaired. Whether a particular modification is reasonable depends on the circumstances. The City of Tracy adopted an amendment to the Zoning Ordinance in 2015 that added a formal reasonable accommodations procedure to the Municipal Code. The Director of Development Services reviews and approves applications for reasonable accommodation

6 California court cases (City of Santa Barbara v. Adamson, 1980 and City of Chula Vista v. Pagard, 1981, etc.) have ruled an ordinance as invalid if it defines a “family” as (a) an individual; (b) two or more persons related by blood, marriage, or adoption; or (c) a group of not more than a specific number of unrelated persons as a single housekeeping unit. These cases have explained that defining a family in a manner that distinguishes between blood-related and non-blood related individuals does not serve any legitimate or useful objective or purpose recognized under the zoning and land use planning powers of a municipality, and therefore violates rights of privacy under the California Constitution.

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administratively; however, the Director may refer the application to the Planning Commi ssion at their discretion.

5. Development and Planning Fees
Residential developers are subject to a variety of fees and exactions to process permits and provide necessary services and facilities as allowed by State law. In general, these development fees can be a constraint to the maintenance, improvement, and development of housing because the additional cost borne by developers contributes to overall increased housing unit cost. However, the fees are necessary to maintain adequate planning services and other public services and facilities in the City.

The City’s permit processing fees are listed in Table III-8.

Most permit processing fees are levied on a full cost recov ery basis to recoup actual administrative costs incurred to the City during the development review process. Development impact fees are levied to offset fiscal impacts of new developments.

Table III-8: Permit Processing Fees
Type Amount
Conditional Use Permit $5,817
Development Review
Class A $10,409
Class B $8,629
Environmental Initial Study/Negative Declaration Cost Recovery Agreement Environmental Impact Report $31,942
General Plan Amendment Cost Recovery Agreement
Planned Unit Development $5,450
Planning Commission Determination $5,280
Residential Growth Allotment $3,919
Specific Plan Amendment
Minor $4,780
Major $19,134
Tentative Parcel Map $8,640
Tentative Subdivision Map
5-100 lots $15,605
101+ lots $28,666
Variance $2,596
Zone Change $3,618
Source: City of Tracy, Development and Engineering Services (DES) Department Master Fee Schedule, 2023.

Notes:

1. Class A = 4 or more units

2. Class B = 1-3 units

A typical development is also expected to pay a variety of impact fees to ensure the adequate provision of infrastructure, services, and facilities. The exact fees to be paid depend on the location of the projects. Estimated fee schedules for single family and high density residential development are displayed in Figure III–1 and Figure III–2. Typical application processing costs to the City for a residential project range between $15,000 to $40,000. Technical studies (such as traffic, sewer, water, or CEQA) can cost between $10,0 00 to $60,000 per residential subdivision or apartment complex.

Development impact fees for a typical single-family home are approximately $ 73,036 per unit.

Typical multi-family development fees are approximately $43,197 per unit. Overall, planning and development fees total approximately $ 78,000 per single-family unit and $ 46,000 per multi-family unit. The City’s fee structure is not partial to single-family development.

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While the City’s fees are tied to the costs of providing necessary services, they can impact the development of affordable housing. The City has several policies in place to facilitate the development of affordable housing, including: increased priority under the Growth Management Ordinance, decreased construction costs through reduced standards (i.e., reduced parking, etc.).

6. On- and Off-Site Improvements
Requirements for on - and off -site improvements vary depending on the presence of existing improvements, as well as the size and nature of the proposed development. In general, the City requires the following improvements and facilities for new developments:
• Frontage improvements. The frontage of each lot is required to be improved consistent with the geometric sections of the Roadway Master Plan, including street structural section, curbs, gutters, sidewalks, driveway approaches, transitions, landscaping and street lighting • Storm drainage. Stormwater runoff must be collected and conveyed by an approved storm drain system that provides for the protection of abutting and off-site properties. Off- and/or on-site storm drain improvements and/or detention or retention basins may be required to satisfy this requirement.
• Water supply. Each unit or lot must be served by the City water system, with a separate water meter.
• Underground utilities. All existing and proposed utilities must be placed underground. Street lighting must also be provided to the standards specified in the City's design documents.

Developers must deposit with the City sufficient money to pay for the energy and maintenance of such street-lighting for a period of 18 months or secure funding for lighting through a landscape and lighting maintenance district.
• Other improvements . Other improvements, including but not limited to, street lights, fire hydrants, signs, street trees and sh rubs, landscaping, irrigation, and monuments, or fees in lieu of any of the above may also be required.
• Street Design . The City of Tracy street design criteria are summarized in the table below (Table III-9). Alternative street designs are permitted within specific plan areas.

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Figure III–1: Development Impact Fees—Single Family Residential

Notes:
1) Fees are for estimating purposes only and calculated based on a proposed single family residential unit on a 0.23 acre parcel (based on 4.35 SFDU/Ac). Fees are subject to change based on the final acreage and location.
2) It is assumed that the single family residential unit will pay the Wastewater - East Conveyance fee, and Storm Drainage - Westside Residential. Fees are subject to change pending location.
3) Fees are due at the time the building permit is pulled, fees are subject to change upon fee update.

This table does not include school or other impact fees that may be levied.

Capital-In-Lieu Fees are adjusted twice per year in accordance with ENR index and as othe rwise directed by City Council. These are Capital-In-Lieu Fees only, determined by specific, identified assumptions about a project. They do not include building permit, plan check, inspection, school, encroachment permit, engineering, or any other applicable fees. The City does NOT guarantee accuracy of these fees. The fee is based on City staff's understanding of the project's scope, impacts, and variables such as acreage, building size, number of water meters, and size of water meters.

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Figure III–2: Development Impact Fees—High Density Residential

Notes:
1) Fees are for estimating purposes only and calculated based on a proposed 1 high density residential unit on a 0.05 acre/unit parcel (based on 18.75 high density residential units/acre). Fees are subject to change based on the number of dwelling units, acreage, and location. 2) It is assumed that the high residential units will pay the Wastewater - East Conveyance fee, and Storm Drainage - Westside Residential. Fees are subject to change pending location.
3) Fees are due at the time the building permit is pulled, fees are subject to change upon fee update.

This table does not include school or other impact fees that may be levied. Capital-In-Lieu Fees are adjusted twice per year in accordance with ENR index and as otherwise directed by City Council. These are Capital -In-Lieu Fees only, determined by specific, identified assumptions about a project. They do not include building permit, plan check, inspection, school, encroachment permit, engineering, or any other applicable fees. The City does NOT guarantee accuracy of these fees. The fee is based on City staff's understanding of the project's scope, impacts, and variables such as acreage, building size, number of water meters, and size of water meters.

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Table III-9: Street Design Criteria
Design Criteria Right of Way Curb to Curb
Residential Streets (<500 VPD) 56’ 36’
Minor Residential Collector (500-2,000 VPD) 60’ 40’
Major Residential Collector (2,000-5,000 VPD) 86’ 56’
Minor Arterial (5,000-12,000 VPD) 114’ 64’
Source: City of Tracy, 2023.

VPD=Vehicles per day

7. Building Codes and Enforcement
In addition to land use controls, local building codes also affect the cost of housing. The City currently implements the 2022 California Building Codes, which are based on the International Building Codes. The California Building Codes establish standards and requires inspections at various stages of construction to ensure code compliance and minimum health and safety standards.

Although these standards may increase housing production costs, these standards are mandated by the State of California and are i ntended to provide structurally sound, safe, and energy -efficient housing.

8. Local Permits and Processing Times
The processing time needed to obtain development permits and required approvals is commonly cited by the development community as a prime contributor to the high cost of housing. Depending on the magnitude and complexity of the development proposal, the time that elapses from application submittal to project approval may vary considerably. Factors that can affect the length of development review on a proposed project include: completeness of the development application submittal, responsiveness of developers to staff comments and requests for information, and projects that are not exempt from the California Environmental Quality Act (CEQA), require rezoning or general plan amendment, or are subject to a public hearing before the Planning Commission or City Council.

Certainty and consistency in permit processing procedures and reasonable processing times is important to ensure that the development review/approval process does not discourage developers of housing or add excessive costs (including carrying costs on property) that would make the project economically infeasible. The City is committed to maintaining comparatively short processing times.

Total processing times vary by project, but most residential projects are approved in three to eight months. Table III-10 provides a detailed summary of the typical processing procedures and timelines of various types of projects in the City.

Table III-10: Processing Times
Project Type Reviewing Body
Public Hearing
Required
Appeal Body
(if any)
Estimated Total
Processing Time
Single-Family
Subdivision
Planning Commission* Yes City Council 3-8 months
Multiple-Family DES Director Yes Planning Commission 3-8 months Multiple-Family (with
subdivisions)
Planning Commission* Yes City Council 3-8 months
Mixed Use Planning Commission Yes City Council 3-8 months *City Council would grant final approval if the Tentative Map is a “Vesting” Map. If not Vesting, Planning Commission has final approval authority. All projects are assumed to have proper general plan, zoning, and CEQA clearance.

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The processing time for the most common residential development applications are summarized in Table III-11. These applications are often processed concurrently. Depending on the level of environmental review required, the processing time for a project may be lengthened. Given the relatively short time periods required for processing residential development applications in Tracy, the City’s permit processing procedures are not a significant constraint on residential development.

Table III-11: Approximate Processing Times
Process/Application Time
Conditional Use Permit 3-5 months
Development Review 3-8 months
General Plan Amendment 3-8 months
Environmental Impact Reports 6-18 months
Plan Check/Building Permits 1-4 months
Tentative Map 3-8 months
Variance 1-2 months
Zone Change 3-8 months
Source: City of Tracy Planning Department, 2015.

Development Review
A Development Review Permit is required for all housing developments or improvements that require a building permit, except for single-family and two -family residences. An application, including an initial environmental study and site/architectural plans, must be submitted to the City’s Development and Engineering Services (DES) Department. Site plan and architectural reviews are completed within the Development Review process. The DES Director reviews applications and has the authority to approve, conditionally approve, or deny an application. In reviewing and evaluating an application, the Director considers the following aspects:
• Conformity with various zoning provisions;
• The height, bulk, and area of buildings;
• The types of buildings and installations;
• The physical and architectural relationship with the existing and proposed structures; • The site layout, orientation, and location of the buildings and relationships with open areas and topography;
• The height, materials, colors, and variations in boundary walls, fences, and screen plantings; • The location and type of landscaping, including, but not limited to, off -street parking areas; and
• The appropriateness of the sign design and exterior lighting.

On March 2, 202 1, the City Council approved an action plan to address affordable/workforce housing, among which include changes to density and development regulations . The action plan will include objective design standards for multi-family development.

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Conditional Use Permit
In all zoning districts, specified conditional uses are permitted subject to the granting of a Conditional Use Permit. Because of their potentially incompatible charac teristics, conditional uses require special consideration so that they may be located properly with respect to their effects on surrounding properties. To achieve these purposes, the Planning Commission has the authority to grant or deny applications for u se permits and to impose reasonable conditions upon the granting of Conditional Use Permits.

A public hearing is required for each application for a Conditional Use Permit. Hearings are typically held within 90 days after the date the application was filed. Notice of the public hearing must given at least 10 days, but not more than 20 days, prior to the date of the hearing. At the public hearing, the Commission reviews each application and receives applicable evidence and testimony concerning the proposed u se and the proposed conditions. The Commission must decide on each application within 40 days of the closing of the public hearing.

In recommending the approval of a Conditional Use Permit, the Commission can impose a variety of conditions that are deemed necessary to protect the public health, safety, and general welfare.

Such conditions may include:
• Special yards, spaces, and buffers;
• Fences and walls;
• The surfacing of parking areas and provisions for surface water drainage, subject to City specifications;
• Requiring street dedications and improvements, including service roads or alleys when practical;
• The regulation of the points of vehicular ingress and egress; • The regulation of signs;
• Requiring the maintenance of the grounds;
• Requiring landscaping and the maintenance thereof;
• The regulation of noise, vibration, odors, and other similar characteristics; • The regulation of the time for certain activities to be conducted on the site; • The time period within which the proposed use shall be developed; • A bond, deposit of money, or letter of credit for the completion of the street improvements and other facilities or for the removal of such use within a specified period of time to assure faithful performance on the part of the applicant.

Development Review Team Meetings
The Development Services Director, Chief Building Official, and staff from Planning, Engineering, Building and Fire Safety, Economic Development, and Public Works convene eve ry other Monday to review recently submitted projects and projects in the pipeline.

The intent of these meetings is to share with each other upcoming regulations that may affect permitting or processing and to discuss individual projects, if necessary, to make sure that they are III. Housing Constraints
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on track for approval. Issues such as additional engineering analysis, more in-depth environmental review, or revised submittals are discussed in these meetings.

Any updates from these meetings are conveyed to the applicants via the ir single point of contact.

Applicants are welcome to attend these meetings, even if it is to elicit feedback prior to their initial submittal.

9. State Tax Policies and Regulations
Proposition 13
Proposition 13 is a voter initiative that limits increases in property taxes except when there is a transfer of ownership. This initiative may have increased the cost of housing by forcing local governments to pass on more of the costs of housing development to developers.

Federal and State Environmental Protection Regulations
Federal and State regulations require environmental review of proposed discretionary projects (e.g., subdivision maps, use permits, etc.). Costs, resulting from fees charged by local government and private consultants needed to complete the envi ronmental analysis and from delays caused by the mandated public review periods, are also added to the cost of housing development and may be passed on to the consumer. However, the presence of these regulations helps preserve the environment and ensure environmental quality for Tracy residents.

C. Environmental and Infrastructure Constraints
A community’s environmental setting affects the feasibility and cost of developing housing.

Environmental issues range from the availability of water to the suitability of land for development due to potential exposure to seismic, flooding, wildfire and other hazards. If not properly recognized and accommodated in residential design, these environmental features could potentially endanger lives and property. This section summarizes these potential constraints on residential development in Tracy.

1. Geologic and Seismic Hazards
There are four Seismic Zones in the United States, which are ranked according to their seismic hazard potential. Zone 1 has the least seismic potential and Zone 4 has the highest seismic potential.

The City of Tracy lies primarily within Seismic Zone 3, while parts of the Tracy Hills Specific Plan area lie in Zone 4. The California Building Code contains special standards and regulations for each zone to ensure that all new construction will withstand forces associated with a major earthquake.

There are numerous faults within and around the City of Tracy. Major faults near the City include the San Andreas, Calaveras, Hayward and Concord -Green Valley fault s. These faults have historically been the source of earthquakes felt in Tracy. The Carnegie/Corral Hollow fault, considered active, runs roughly northeast -southeast along the southern boundary of the Lawrence Livermore National Laboratory Site 300. The Bl ack Butte and Midway faults, which are potentially active, lie near the City’s boundaries and may pose potential seismic hazards for the Planning Area.

The Tracy -Stockton fault, which passes beneath the City of Tracy in the deep subsurface, is considered i nactive. The Elk Ravine fault, which is considered inactive, lies between the Carnegie/Corral Hollow, Black Butte and Midway faults.

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There are a series of specific hazards that are caused by earthquakes, including ground rupture, ground shaking, liquefact ion and expansive soils. Due to its seismic and geologic conditions, the City of Tracy is subject to several of these hazards, including a moderate potential for liquefaction, as well as a moderate to high potential for expansive soils depending on the spe cific soil conditions and location. The Safety Element of the City’s General Plan includes goals, policies, and actions that are designed to reduce the risks of these hazards, including requiring underground utilities and geotechnical reports.

For all new construction, the City requires geotechnical reports and other analyses, where necessary, to analyze potential soils or geologic hazards. The California Building Code, enforced by the City’s Development Services Department, contains design and development regulations to ensure that all new construction will withstand forces associated with geologic and seismic hazards.

2. Flooding
Floodplain zones are determined by the Federal Emergency Management Agency (FEMA) and used to create Flood Insurance Rate Maps (FIRMs) that designate these zones. These maps assist cities in mitigating flooding hazards through land use planning and building permit requirements. FEMA outlines specific regulations for any construction, whether residential, commercial or industrial within 100-year floodplains. The floodplain is the relatively level land area on either side of the banks of a stream subject to flooding. The 100 -year floodplain is the area subject to flooding based on a storm event that is expected to occur every 100 years on average, based on historical data.

The most recent FIRM for the City of Tracy is dated October 16, 2009. According to this FIRM, the majority of land within City limits is included in Zone X, the designation for lands outside of the 100-year floodplain. Two areas along the northern portion of the City fall within FIRM Zone AE, which indicates the 100-year floodplain. Furthermore, the majority of land within the city limit and SOI is located outside of the 200 -year floodplain, although there are small areas in the northern portions of the city limit and SOI that are within the preliminary 200-year floodplain boundary. New construction and substantia l improvements to structures are required to “have the lowest floor (including the basement) elevated at least one foot above the base flood level” or be of flood -proof construction.

The Safety Element of the City’s General Plan also includes goals and pol icies that are designed to reduce the risks of flooding hazards in the City. These policies include:
• Limiting development on lands within the 100-year flood zone • Preventing the construction of flood barriers within the 100-year flood zone that divert flood water or increase flooding in other areas
• Encouraging property owners to purchase National Flood Insurance, which reduces the financial risk from flooding and mudflows
• Implementing floodplain overlay zones provided by FEMA The Federal Emergency Management Agency (FEMA) determines the locations of floodplains and designates the locations of flood zones on Flood Insurance Rate Maps. Specific regulations are enforced by the City on all new construction to ensure that the lowest floor is at least one foot above the base flood level or that the structure is flood -proof. All sites zoned for residential development or identified to provide sites to meet the RHNA, however, are outside the 100-year floodplain.

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3. Wildland Fires
The risk of wildland fires is r elated to a combination of factors, including winds, temperatures, humidity levels and fuel moisture content. Of these four factors, wind is the most crucial. Steep slopes also contribute to fire hazard by intensifying the effects of wind and making fire suppression difficult. Features in some parts of the Planning Area, including highly flammable vegetation, and warm and dry summers with temperatures often exceeding 100 degrees Fahrenheit, create a situation that results in potential wildland fires. Where there is easy human access to dry vegetation, fire hazards increase because of the greater chance of human carelessness. High hazard areas include outlying residential parcels and open lands adjacent to residential areas.

To quantify this potential risk, t he California Department of Forestry and Fire Protection (Cal Fire) has developed a Fire Hazard Severity Scale that utilizes three criteria in order to evaluate and designate potential fire hazards in wildland areas. The criteria are fuel loading (vegetati on), fire weather (winds, temperatures, humidity levels and fuel moisture contents) and topography (degree of slope).

The Safety Element of the City’s General Plan also includes goals and policies that are designed to reduce the risks of wildland fire hazards in the City. These policies include:
• Limiting development in areas with steep terrain
• Requiring new developments to satisfy fire flow and hydrant requirements • Incorporating drought-resistant and fire-resistant plants in areas subject to wildland fires. • Regularly training the South San Joaquin County Fire Authority (Fire Authority) for urban and wildland firefighting conditions.

High fire hazard areas include outlying residential parcels and open lands adjacent to residential area. All new development in Tracy is required to satisfy fire flow and hydrant requirements.

4. Hazardous Materials and Waste
Products as diverse as gasoline, paint solvents, film processing chemicals, household cleaning products, refrigerants and radioactive substances are categorize d as hazardous materials. What remains of a hazardous material after use or processing is considered to be a hazardous waste. The handling, transportation and disposal of such waste is of concern to all communities. Improper handling of hazardous materials or wastes may result in significant effects to human health and the environment.

Many businesses and residents in Tracy use hazardous materials and generate some amount of hazardous waste. The most common hazardous waste in Tracy are generated from gasoli ne service stations, dry cleaners, automotive mechanics, auto body repair shops, machine shops, printers and photo processors, and agriculture. Most of these wastes are petroleum -based or hydrocarbon hazardous waste and include cleaning and paint solvents, lubricants and oils. However, medical wastes, defined as potential infectious waste from sources such as laboratories, clinics and hospitals, are also included among the hazardous wastes found in Tracy.

Hazardous materials and hazardous wastes in Tracy are heavily regulated by a range of federal, State and local agencies. One of the primary hazardous materials regulatory agencies is the California Environmental Protection Agency, Department of Toxic Subst ances Control (DTSC).

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DTSC is authorized by the U.S. Environmental Protection Agency (EPA) to enforce and implement federal hazardous materials laws and regulations.

San Joaquin County has prepared a Hazardous Material Area Plan, in accordance with the California Health and Safety Code (HSC) (Division 20, Chapter 6.95, §25500 et seq.) and California Code of Regulations (CCR) (Title 19, Article 3, §2270 et seq.). The Plan is designed to protect human health and the environment through hazardous materials eme rgency planning, response and agency coordination and community right -to-know programs. The Plan outlines the roles and responsibilities of federal, State, and local agencies in responding to hazardous material releases and incidents. The City of Tracy’s Department works with San Joaquin County to implement this plan.

The City of Tracy participates with San Joaquin County in a household hazardous waste program.

Tracy residents can also access the permanent household hazardous waste consolidation facility located in Stockton.

The County Office of Emergency Services (OES) administers the Emergency Planning and Community Right -to-Know program for the Tracy Planning Area. Under Chapter 6.95 of the California Health and Safety Code and the Federal Resource Conser vation and Recovery Act, any business storing quantities of hazardous materials greater than 55 gallons of liquid, 500 pounds of solid or 200 cubic feet of some compressed gasses must file a hazardous materials business plan annually that establishes incident prevention measures, hazardous material handling protocols and emergency response and evacuation procedures.

The Safety Element of the City’s General Plan also includes goals and policies that are designed to reduce the risks associated with hazardous materials and waste in the City. These policies include:
• Requiring developers to conduct the necessary level of environmental investigation to ensure that soils, groundwater and buildings affected by hazardous material releases from prior land uses and lea d or asbestos potentially present in building materials, will not have a negative impact on the natural environment or health and safety of future property owners or users.
• Requiring new pipelines and other channels carrying hazardous materials avoid resid ential areas and other immobile populations to the extent possible. • Maintaining formally designated hazardous material carrier routes to direct hazardous materials away from populated and other sensitive areas.

Most hazardous wastes in Tracy include cleani ng and paint solvents, lubricants and oils. Medical wastes are also included among the hazardous wastes found in Tracy. The City works with appropriate County and State agencies to ensure compliance with all hazardous materials and waste safety regulations . No new residential development will be subject to significant risks from hazardous materials or waste.

5. Water Supply
Tracy’s 2020 Urban Water Management Plan (UWMP) was adopted in June 2021. 7 The UWMP provides information about the City’s historical and projected water demands, water supplies, supply reliability and potential vulnerabilities, water shortage contingency planning and demand management programs. The information provided below is from the 2020 UWMP.

7 City of Tracy, 2020 Urban Water Management Plan, June 2021. Prepared by EKI Environment & Water.

III. Housing Constraints
City of Tracy
III-35 2023-2031 Housing Element
The City of Tracy obtains water from both s urface and groundwater sources. The City purchases imported surface water from two wholesale water suppliers: (1) the United States Bureau of Reclamation (USBR), which supplies the City with Central Valley Project (CVP) water, and (2) the South San Joaquin Irrigation District (SSJID), which supplies Stanislaus River water through the South County Water Supply Project (SCWSP). The City overlies the Tracy Subbasin and approximately six percent of the City’s water supply was from local groundwater supply wells during 2020. The City manages the multiple supply sources based on contractual agreements, climate, City policy, regulatory requirements, and various other factors. In the future, the City intends to continue utilizing its existing supplies. However, futu re supply reliability of imported water is projected to decrease. The City plans to increase its future supply by increasing groundwater production and implementing the following water projects:
• Expansion of the Aquifer Storage and Recovery (ASR) program and installation of additional ASR wells. This expansion will provide up to 1,000 acre-feet per year of water supplies by 2040. The ASR supply will be used to meet demands during dry years • Expand the recycled water system to serve future development areas. Pursuant to the City’s Recycled and Non-Potable Water Ordinance, all new subdivisions are required, to the extent practicable, to install the required infrastructure (such as dual -distribution pipelines) to provide recycled water to meet non-potable water demands at parks, golf courses, sports fields, schools, median island landscapes, and industrial sites. • Indirect reuse of its recycled water.

The City is projected to have a total population of approximately 166,700 people by the year 204 5, which represents a 73 percent increase over the 2020 population. The population projection is based on the Tracy Municipal Services Review (June 2019).

The City estimates that approximately 33,868 AFY of potable water supply and 6,300 AFY of non - potable water supply will be available in 2045 under normal conditions. The City is expected to have adequate water supplies during normal years to meet its projected demands through 2045. However, the reliability of the City’s surface water supplies is estimated to be significantly reduced during a single dry year. As a result, total water supplies are projected to be insufficient to meet the projected demands. During multiple dry years, the sufficiency of the City’s water supplies to meet the projected demands depends on the drought year. In 2035 to 2045, as demand increases, supply shortfalls are expected, with the largest shortfall being approximately 7,308 AFY in 2045, or 19 percent of the projected demands.

Although there remains large uncertainty in future supply availability, the City has developed strategies and actions to address the projected supply shortfalls. These include: additional recycled water options, expanding the existing water supply and to obtain new supply sources and direct potable reuse of recycled water. In addition, the City has been implementing, and plans to continue to implement, demand management measures and has developed a robust Water Shortage Contingency Plan (WSCP) that systematically identifies ways in which the City can reduce water demands.

III. Housing Constraints
City of Tracy
2023-2031 Housing Element III-36

6. Wastewater Capacity
The City of Tracy’s wastewater facilities include a collection system consisting of gravity sewer lines, pump stations, force mains, and a Wastewater Treatment Plant (WWTP). Wastewater flows toward the northern part of the City where it is treated at the WWTP and then discharged into the Old River in the southern Sacramento-San Joaquin Delta.

The City of Tracy is the wastewater treatment service provider in Tracy. According to the 2022 Wastewater Master Plan Update, the City is currently implementing capital improvements to increase WWTP capacity to serve current demand. Anticipated growth through 2040 will cause services needs to increase greatly in the coming years. To ensure that system capacity meets future demand, additional system upgrades are necessary and have been outlined in the Wastewater Master Plan Update as the “Revised Phase 1 Upgrades.”

7. Habitat Protection
The Tracy Planning Area currently contains a range of vegetation and habitat types including urban, agricultural, riparian woodlands, seasonal wetlands, farmed wetlands and non -native grasslands.

These vegetation areas and habitats, which are described below, host a wide range of wildlife and plant species that reflect the diversity in San Joaquin County and the Central Valley.

There are numerous special status plant and animal species known to be located in the Tracy Planning Area. Special -status species include plants and animals that are legally protected unde r state and federal Endangered Species Acts or other regulations, as well as species considered sufficiently rare by the scientific community to qualify for such listing.

As of 2009, there are six special -status mammals, 24 special -status birds, six specia l-status reptiles and amphibians, two special-status invertebrates, and twelve special-status plant species potentially occurring in the Planning Area. These include the San Joaquin kit fox, the Swainson’s hawk, the San Joaquin pocket mouse, and the giant garter snake.

In an effort to protect sensitive and threatened species throughout the county, the San Joaquin Council of Governments (SJCOG) has prepared the San Joaquin County Multi -Species Habitat Conservation and Open Space Plan (SJMSCP). The purpose of the SJMSCP is to provide a county - wide strategy for preserving open space, provide for the long -term management of plant, fish and wildlife species, especially those that are currently listed or may be listed in the future under the ESA or the California Endangered Species Act, and provide and maintain multiple-use Open Spaces that contribute to the quality of life of the residents of San Joaquin County. The City of Tracy has adopted the SJMSCP. Sites used to fulfill the RHNA are not impacted by the SJMSCP.

There are numerous special status plant and animal species known to be located in the vicinity of Tracy. In an effort to protect sensitive and threatened species, the City of Tracy participates in the San Joaquin County Multi -Species Habitat Conservation and Open Space Plan (SJMSCP). The SJMSCP allows development to occur in the City limits while land is conserved elsewhere in San Joaquin County for long-term management of plant, fish, and wildlife species.

IV. Housing Sites and Resources
City of Tracy
IV-1 2023-2031 Housing Element
IV. Housing Sites and Resources
A. Land Inventory
This section provides an overview of available land resources and residential sites for future housing development and evaluates how these resources can work toward satisfying future housing needs.

It provides an overview of the methodology and approach for the City of Tracy to meet its Regional Housing Needs Allocation (RHNA). Also discussed are the financial and administrative resources available to support affordable housing and energy conservation opportunities.

Housing Allocation
California State law requires that a community provide an adequate number of sites to allow for and facilitate production of the regional share of housing. To determine whether a jurisdiction has sufficient land to accommodate its share of r egional housing needs for all income groups, each jurisdiction must identify “adequate sites.” Under State law (California Government Code Section 65583[c][1]), adequate sites are those with the appropriate zoning and development standards, with the services and facilities to encourage the development of a variety of housing for all income levels.

The California Department of Housing and Community Development (HCD) and the California Department of Finance are responsible for assessing the housing needs for different regions across the state. Tracy is in the San J oaquin Council of Governments (SJCOG) region, which received a regional allocation of 52,719. Tracy’s RHNA for the 2023–2031 planning period has been determined by SJCOG to be 8,830 housing units, spread among different income categories, as shown in Table IV-1.

Table IV-1: 2023-2031 RHNA
Very Low Income Low Income Moderate Income
Above Moderate
Income Total
2,994 1,879 1,175 2,782 8,830
Source: Regional Housing Needs Plan, SJCOG, 2023-2031.
*Note: Pursuant to AB 2634, local jurisdictions are also required to project the needs of extremely low income households (0–30% of area median income). The projected extremely low-income need can be assumed as 50 percent of the total need for the very low-income households.

As shown in Table IV-2, the pending projects and projected accessory dwelling units (ADUs) have already met and exceeded the above moderate RHNA for Tracy by 66 percent.

Table IV-2: Pending Projects and ADUs Progress Towards RHNA

Very Low
Income
Low
Income
Moderate
Income
Above
Moderate
Income Total
A RHNA 2,994 1,879 1,175 2,782 8,830
B Pending Projects 118 23 - 4,133 4,274
C ADUs 99 99 99 33 330
D Surplus / (Deficit) of RHNA (2,777) (1,757) (1,076) 1,384 - E Percent Surplus Met by ADUs
and Pending Projects
- - - 66% -

IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-2
20 Percent No Net Loss Buffer
Recent changes to State law (Senate Bill 166 – 2017) require cities to continually maintain adequate capacity in their sites inventories to meet their RHNA for all income levels. In the event that a site is developed below the density projected in the Housing Element, or at a different income level than projected, the City must have adequate sites available to accommodate the remaining balance of the RHNA. The City may identify and add new sites or rezone sites to continue to accommodate the remaining need. If the City does not have any additional capacity within the existing zoning, it must identify and rezone new sites that can accommodate the remaining need within six months. For this reason, the City is including a buffer of 20 percent above the RHNA not met by ADUs or pending projects in each income category.
5th Cycle Carryover Sites
In addition to the 6th Cycle RHNA and 20% buffer, the City has yet to complete the rezoning of 31.7 acres to meet the shortfall for the 5 th Cycle Housing Element RHNA. The 31.7 acres consists of four parcels to be rezoned from Light Industrial to HDR. This means that there is a carryover of 500 lower- income units from the previous cycle. With the 500-unit carryover lower-income units from the 5th Cycle, the City has a RHNA obligation of 8,830 units (5,373 lower-income).

The City is rezoning to meet its RHNA obligation, including the 500 -unit carryover, through Program 11.

Total Target Capacity
Table IV-3 identifies the total target capacity based on the RHNA plus 20 percent of any unmet RHNA. As shown, the 5th Cycle carryover units (Row A ), pending projects (Row C) and projected ADUs (Row D) are subtracted from the RHNA (Row B) to determine the unmet RHNA (Row E). The unmet RHNA of 2,777 very low-, 1,757 low-, and 1,076 moderate-income units is multiplied by 20 percent (Row F). Note that because the RHNA has been m et for the above moderate -income category, there is no unmet RHNA and no target buffer for that income level. Row G totals the 5th Cycle carryover units (Row A), the RHNA (Row B) and the 20 percent of the unmet RHNA (Row F) to show the total target sites capacity of 10,452 units. Of the total 10,452 units, the RHNA for above- moderate income units (2,782) has already been met through pending projects . Therefore, the remaining RHNA plus 20 percent buffer is 7,669 units.

Table IV-3: 2023-2031 Target Sites Capacity: RHNA plus 20% Buffer Row
Identifier Category Very Low Low Moderate
Above
Moderate Total
A 5th Cycle Carryover 250 250 - - 500
B RHNA 2,994 1,879 1,175 2,782 8,830
C Pending Projects 118 23 - 4,133 4,051
D ADUs 99 99 99 33 330
E Unmet RHNA
(A-B-C)
2,777 1757 1,076 - 5,610
F Target Buffer (20% of Unmet RHNA)
(E*0.20)
555 351 278 - 1,184
G Total RHNA + Target Buffer + 5th
Cycle Carryover (A+B+E)
3,799 2,480 1,390 2,782 10,452

IV. Housing Sites and Resources
City of Tracy
IV-3 2023-2031 Housing Element
B. Realistic Capacity
State law requires that a city project realistic estimates for housing capacity on its RHNA sites.

Realistic capacity may be estimated by utilizing recent project history, using a minimum density, or through other methods.

As the majority of the City’s new housing growth to meet the lower -income ranges is expected to take the form of multifamily housing, the City reviewed multifamily projects constructed during the 5th Cycle to understand historical trends for multifamily housing production.

Multifamily developments in the City have had success in meeting the densities allowed by the Zoning Ordinance. Table IV-4 lists the recen t multifamily projects built, approved, or proposed in the City within the last few years. The table shows the project, land use, zoning, density, number of units, maximum density of the zone, and actual and assumed site yields as a percentage of the maximum allowed . Seven of the fourteen projects have achieved a yield over 100 percent of the maximum density with density bonuses for affordable housing . The average yield for all fourteen projects is 106 percent. However, the RHNA opportunity sites capacity is based on assumed yields that were reduced to a maximum of 100 percent. In this manner, the assumed yield is reduced to 91 percent, demonstrating that most multifamily developments are able to meet the maximum density and are achieving very high yield percentages.

The City of Tracy regulates density by two different measurements: gross density and net density.

The General Plan establishes an allowable gross density range for residential land use designations.

The gross density includes the number of residential units divided by the entire area of the project, including the finished lots, streets, and may include public parks, schools, fire stations, or utility areas such as storm drain basins.

The zoning districts’ regulations which implement the General Plan are consistent with the allowed gross density ranges of the General Plan. However, the zoning districts also regulate the net density which includes only the size of the finished lot. Therefore, the net density of a multi-family project on one lot is higher than the gross density. As the allowed projects’ densities discussed above relate to gross density (as measured by the General Plan), some residential projects are identified as exceeding the maximum density. In those cases, they do not exceed the allowed density; instead , their density, as expressed in net terms, is higher than the gross density.

Table IV-4: Recently Built, Approved, or Proposed Multifamily Projects Project
General Plan Land
Use Zone
Project
Density
(du/ac)
# of
Units
Max
Density
Actual
Yield
(%)
Assumed
Yield
(%)
The Junction Downtown CBD 105.0 46 50 186% 100%
1000 N. Central Ave Downtown CBD 55.2 6 50 110% 100%
15 Duplexes, 2
Triplexes and 1 SFD
Residential Medium MDR 11.1 37 12 92% 92%
Byron Road Duplexes Residential Medium MDR 12.7 12 12 106% 100% Collin Avenue
Duplexes
Residential High HDR 24.8 10 25 99% 99%
Diaz Duplexes Residential Medium MDR 12.7 4 12 106% 100% East 8th Street
Apartments
Downtown CBD 24.6 5 50 49% 49%
Rod-Singh
Apartments
Commercial GHC 17.7 12 25 71% 71%
SANSUB Apartments Residential Medium MDR 11.6 9 12 96% 96% Tracy Apartments Residential Medium MDR 14.1 12 12 117% 100% IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-4
Project
General Plan Land
Use Zone
Project
Density
(du/ac)
# of
Units
Max
Density
Actual
Yield
(%)
Assumed
Yield
(%)
Vela Apartments Residential High HDR 22.7 264 25 91% 91% 321 Grant Line Rd Commercial GHC 24.0 40 25 96% 96%
Tracy Senior Living Residential Medium HDR 47.8 110 25 227% 100% Aspire Apartments Residential High PUD 32.2 348 25 129% 100% Average 106% 91%
*Proposed project, not included in the RHNA

The City is proposing to make changes to its zoning and development to accommodate the 8,830- unit RHNA. The City of Tracy will:
• Increase the Medium Density Residential (MDR) and Medium Cluster Residential (MDC) zone maximum density to 20 dwelling units/acre (du/acre); • Increase the High Density Residential (HDR) zone density to 20 -35 du/acre (affects 304 parcels, 101.4 acres);
• Increase the General Highway Commercial (GHC) zone density to 20-35 du/acre (affects 253 parcels, 182.6 acres); and
• Rezone approximately 240.2 acres, which includes 88 opportunity sites, 85 of which will be rezoned to HDR (199.7 acres) and 3 parcels which will be rezoned to a new Mixed Use zone (40.3 acres).

Table IV-5 shows the assumed yields for the higher density zones in the City , taking into consideration the City’s upzoning (increasing the permitted densities) and rezoning ( changing the zone to a more intensive zone) strategy. The yields were determined based on recent multifamily trends shown above (see Table IV-4) and development standards assessed in the constraints section.

Though recent projects suggest that most projects in Tracy are achieving the maximum, or close to the maximum, density on sites, conservative yields were assumed for the RHNA Projection. For recent projects, t he density yields range from 49 to 227 pe rcent, which is an average yield of 106 percent of the maximum permitted density.

To project future development yields a conservative approach was taken. Rather than use the actual average yield (106 %), the City de ducted all additional units derived from density bonuses. In this manner, the yields from the recent projects were limited to a maximum of 100 percent of the maximum densit y. This lowere d the average yield from 106 p ercent to 91 percent , as shown in Table IV-5. All of the assumed yields in Table IV-5 are significantly less than the observed yields and averages of recent projects shown in Table IV-4. For example, recent multifamily projects in the HDR zones have been developed at densities of 24.8, 22.7, and 47.8 du/acre, the average assumed yield was calculated at 97 percent, and the projected yield for HDR zones was conservatively assumed at 85 percent of 35 du/acre.

The five MDR projects listed in Table IV-4 average 98 percent yield compared to the assumed yield of 85 percent and the CBD projects averaged 83 percent yield compared to the assumed yield of 50 percent.

IV. Housing Sites and Resources
City of Tracy
IV-5 2023-2031 Housing Element
Table IV-5: Assumed Yields
Zone Maximum Density Yield Estimated Yield Density
MDC 20 du/ac 85% 17.0 du/ac
MDR 20 du/ac 85% 17.0 du/ac
HDR 35 du/ac 85% 29.75 du/ac
GHC 35 du/ac 50% 17.5 du/ac
GHC-TH 35 du/ac 50% 17.5 du/ac
MUBP-TH 35 du/ac 50% 17.5 du/ac
HDR-TH 35 du/ac 85% 29.75 du/ac
CBD 50 du/ac 50% 25.0 du/ac
MU-1* 35 du/ac 50% 17.5 du/ac
*Proposed Mixed Use zone

This substantial rezoning and upzoning of residential and commercial properties as well as the creation of a new mixed use zone (Program 9), along with new City policies and programs promoting infill development, will help increase the variety of housing types and provide more market incentives to maximize the residential development on each property. This includes Program 7, Affordable/Working Housing, that allows and encourages duplexes, triplexes, and fourplexes in new single-family home subdivisions . The new City programs will increase housing yield and facilitate the development of more higher density housing. The City of Tracy has already approved multiple housing development projects that demonstrate the feasibility of the proposed maximum densities (see Table IV-4).

C. Assumed Affordability – Density and Size

1. Density
The California Government Code Section 65583.2(c)(3) states that if a local government has adopted density standards consistent with the population -based criteria set by State law , HCD is obligated to accept sites with those density standards as appropriate for accommodating the jurisdiction’s share of regional housing need for lower -income households. The City of Tracy is identified as a suburban jurisdiction 1, therefore the default density is 20 du/acre. Per Government Code Section 65583.2(c)(3)(B), the City’s HDR, CBD, GHC, POM and new MU -1 zones, as well as the HDR-TH, MUBP-TH, and GHC-TH in the Tracy Hills Specific Plan , are consistent with the default density standard (20 du/ac) for Tracy, and therefore are considered appropriate to accommodate housing for lower-income households.

The City is including a program to upzone the minimum and maximum densities of the HDR zone from 12-25 du/acre to 20-35 du/acre, upzoning the maximum density of the MDR and MDC zones from 12 du/ac to 20 du/ acre and creating a new mixed use zone with densities from 20 -35 du/acre(Program 9). The minimum density of 20 du/ac will ensure that all developments on properties zoned HDR and GHC will meet the requirements for lower-income units.

Moderate-income housing can be accommodated through medium- and higher-density zones, with densities ranging from 12 to 20 du/acre. These densities support a variety of multifamily housing typologies, including townhomes and garden -style apartments, which may be affordable to

1 Jurisdictions (cities/counties) located within a Metropolitan Statistical Area (MSA) with a population of less than 2 million unless a city has a population of greater than 100,000 in which case it would be considered metropolitan.

IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-6
moderate-income households. Above moderate-income housing needs may be met though lower- density, single-family typologies, typically in the 0 to 11 du/acre range. Many of the higher-density sites in the inventory are assumed at a mix of very low-, low-, and moderate-incomes.

Table IV-6 shows the income levels, densities, and their implementing zones in Tracy.

Table IV-6: Densities, Affordability, and Implementing Zones Income
Density Range
(du/ac) Tracy Implementing Zones
Above Moderate 0-11 LDR, MDC, MDR
Moderate 12-20 MDC, MDR, MU-1
Low 20+ CBD, HDR, GHC, HDR-TH, GHC-TH, MUBP-TH, MU-1,
POM
Very Low 20+ CBD, HDR, GHC, HDR-TH, GHC-TH, MUBP-TH, MU-1, POM

2. Size of Development Sites
Pursuant to Government Code Section 65583.2, sites presumed to be affordable to lower income households must have a size of 0.5 to 10 acres. The lower-income eligible sites have gross acreages within the size range of 0.5 to 10.0 acres. Sites that may otherwise meet the 20 du/acre default density but are smaller than 0.5 acres or greater than 10.0 acres are presumed to be affordable to moderate- income households.

Small Opportunity Sites
The Sites Inventory includes 29 properties with common ownership adjacent to each other that have cumulative areas of 0.5 acres or larger as eligible for the lower -income sites , which creates an opportunity for nine lot consolidations. Because these properties have common ownership, a larger project could be pursued by simply moving or removing property lines, without the need for lot consolidation or additional land purchases, and the small size of each individual parcel would not act as a constraint to the development of lower -income housing. While specific parcels ma y be smaller than 0.5 acres, each consolidated “site” is larger than 0.5 acres.

Due to the cumulative areas exceeding 0.5 acres, these smaller properties were grouped together and classified as eligible for accommodating lower-income capacity. These sites provide capacity for 253 lower-income units, which is less than 5 percent of the total lower -income unit capacity. The cumulative acreages and adjacent ownership ensure that the small parcel size will not constrain or preclude the development of affordable housing. Based on this evidence, these small sites are appropriate for accommodating the lower-income RHNA.

The Junction (46 lower-income units) and the E 8th St Apartments (5 above moderate-units) are two pending multifamily projects that demon strate the viability and interest in developing/ consolidating lots under 0.5 acres in Tracy (see Table IV-8). The Junction consists of six parcels totaling 0.47 acre s and the E 8 th St Apartments consist of three parcels totaling 0.23 acres. Both pending projects are smaller in total acreage than any of the consolidated sites shown in Table IV-7 and both projects are examples of vacant (The Junction) and non -vacant (E 8 th St Apartments) consolidation development. Additionally, six of the ten proposed consolidation sites are located within/adjacent to downtown Tracy which is also where the two pending lot consolidation projects are located.

IV. Housing Sites and Resources
City of Tracy
IV-7 2023-2031 Housing Element
Table IV-7: Small Lot Consolidations
Sites APNs Total Acreage
Common
Ownership?
A 23336913, 23336914, 23336915, 23336916, 23336917,
23336918, 23336919

0.79 Yes
B 23405003, 23405004 0.51 Yes
C 23505305, 23505306, 23505307 0.75 Yes
D 23512001, 23512002 3.24 Yes
E 23516206, 23516207, 23516208, 23516209 0.68 No
F 23542005, 23542007 0.82 Yes
G 23543009, 23543011 0.55 Yes
H 23543012, 23543013 0.56 No
I 23310314, 23310315 0.34 Yes
J 23506311, 23506312, 23506316 1.22 Yes

Large Opportunity Sites
Due to the availability of vacant land in the City limits, the City is expecting and planning to grow in these areas. However, several vacant parcels the City is including in the RHNA sites inventory are larger than 10 acres. Therefore the City will create a program to facilitate the development and subdivision of large lots and vacant portions of non-vacant parcels (Program 10). The City has identified 11 large opportunity sites for lower-income units that meet a portion of its lower -income RHNA obligation. The 11 opportunity sites consist of parcels ranging in size from 11.4 – 104.1 acres.

Three of the sites (between 11.9 and 14.3 acres) are projected to develop the entire property, while the other eight, larger parcels are only projected to develop a portion of the property. Both types of large sites are described below. Eight of the eleven large sites are being rezoned to HDR, a total of

58.7 acres and 1,748 units.

The first three sites are being rezoned from Light Industrial (M1) to the new Mixed Use zone (MU-1), for a total of 4 0.3 acres and 706 units. The large sites are not assumed to be entirely lower income and are projected at mixed-income with both moderate and lower -income units for a total of 282 lower income and 424 moderate income units. Additionally, lower-income units are only being projected as 20 percent of the maximum yield of the sites.

The following are descriptions of these large opportunity sites.

IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-8
24802017 – South Tracy Blvd and Gandy Dancer Drive
This site has a total area of approximately 14.3 acres, which is entirely vacant. This opportunity site is
anticipated to accommodate 100 lower-income units
and 150 moderate-income units. This capacity
assumes a conservative 20 percent yield for the low-
income units. The site is located off a major
thoroughfare (S outh Tracy Blvd) providing great
access, adjacent to existing residential, and
approximately less than 0.5 miles from a grocery
store. This site is also similar in characteristics and zoning to the Vela Apartments site (seen in
Table IV-4, this project yielded a total of 264 units on

11.6 acres (22.7 du/acre).

24803005 – 4800 South Tracy Blvd
4800 S outh Tracy Blvd has a total area of
approximately 14.3 acres, which is entirely vacant.

This opportunity site is anticipated to accommodate
100 lower-income units and 1 50-moderate income
units. This capacity assumes a conservative 20
percent yield for the low -income units. The site is
located off a major thoroughfare (South Tracy Blvd)
providing great access, adjacent to existing
residential, and approxi mately 0.5 miles from a
grocery store. This site is nearly identical in
characteristics and directly south of the site at the
intersection of South Tracy Blvd and Gandy Dancer
Dr. It is also similar in characteristics and zoning to the Vela Apartments site (seen in Table IV-4), this
project yielded a total of 264 units on 11.6 acres (22.7 du/acre).

IV. Housing Sites and Resources
City of Tracy
IV-9 2023-2031 Housing Element
24803010 – 4100 South Tracy Blvd
4100 S outh Tracy Blvd has a total area of
approximately 11.4 acres, which is entirely vacant.

This opportunity site is anticipated to accommodate
82 lower-income units and 124 moderate-income
units. This capacity assumes a conservative 20
percent yield for the low -income units. The site is
located off a major thoroughfare (South Tracy Blvd)
providing great access, there is a bus stop on the
western edge of the parcel as well as an adjacent
park to the southeast. The site has existing curb cuts
and sidewalks along the western and southern edge,
making the site ready for development. This site is
similar in character istics and zoning to the Vela
Apartments site (seen in Table IV-4), this project
yielded a total of 264 units on 11.6 acres (22.7
du/acre).

IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-10
21205052 – West Valley Mall

West Valley Mall has a total area of approximately 42.1 acres, which includes a majority of the mall structure, parking lots, and drive aisles. Located on this parcel is an approximately 5 -acre vacant area towards the southeastern part of the site along Interstate 205. This opportunity site is anticipated to accommodate 146 lower-income units. Discussions with real estate professionals and developers during outreach reflected the opportunity to develop this property and area of the City. The site is within the I-205 Specific Plan and has a General Plan designation of Commercial, which allows for 25 du/ac re. One of the most recent projects completed in the City (Aspire Apartments , see Table IV-4) is located just west of this parcel and is also in the I-205 Specific Plan. This project yielded a total of 348 units on 12.98-acres (32.2 du/acre).

IV. Housing Sites and Resources
City of Tracy
IV-11 2023-2031 Housing Element
24005037 – Mabel Josephine Drive and West. Schulte Road The parcel located at the intersection of Mabel Josephine Drive and W. Schulte Road is approximately 48.7 acres of vacant Planned Unit Development (PUD) zoned land. The
parcel contains a 10 -acre RHNA opportunity site that is anticipated to accommodate 298 lower-income units after rezoning from PUD to HDR . The 10-acre RHNA
opportunity site is located at the northeastern corner of the parcel surrounded by single -family residential uses along the eastern and northern boundary; south of the site there is recently completed multifamily housing by Bright Homes. The City has seen interest in development of this parcel over the last planning cycle.

24614001 - West Valpico Road (West of Vela Apartments)
The parcel located on Valpico Road about 0.5 mile
east of Tracy Blvd is approximately 34.2 acres of
vacant Light Industrial (M-1) zoned land. The
parcel contains a 10.0-acre RHNA opportunity site
that is anticipated to accommodate 298 lower-
income units after rezoning from M1 to HDR. The
site is located at the southern half of the parcel that is fronting Valpico Road. The site is surrounded by
single-family residential uses to the northeastern
corner, a warehouse to the west , and multifamily
housing located directly adjacent to and east of the
site (Vela Apartments ; see Table IV-4). The Vela
Apartments are comparable in size (11.8-acres)
and the owner has expressed interest to the City in
developing this portion of the parcel in the future
as a continuation of the Vela Apartments project.

IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-12
23213010 - Merrill F West High School

The parcel located at 1775 West Lowell Ave is approximately 70.1 acres of LDR zoned land. The non- contiguous parcel contains a 3.8-acre vacant opportunity site that is anticipated to accommodate 113 lower-income units. The vacant 3.8-acre site is located in southeastern portion of the property on the south side of W est Lowell Ave across the street from Merrill F West High School. The vacant 3. 8- acre portion of the parcel is underutilized and is located adjacent to existing residential, three schools, bus stops , and an opportunity site which has the potential for consolidation . The realistic capacity for the site before rezoning would be 18 above moderate -income units, but after rezoning from LDR to HDR, the realistic capacity is 113 net new lower-income units.

IV. Housing Sites and Resources
City of Tracy
IV-13 2023-2031 Housing Element
20925050 – West of North Lammers Road

The parcel located west of North Lammers Road is approximately 71.5 acres of vacant PUD zoned land. The parcel contains a 10.0-acre RHNA opportunity site that is anticipated to accommodate 298 lower-income units after rezoning from PUD to HDR. The identified vacant 10.0-acre site is located along the eastern boundary of the property southwest of the intersection of North Lammers Road and Capitol Park Dr ive. The vacant site is surrounded by vacant land and single family with agricultural activity. The City of Tracy views this area as having great development potential and has identified several other RHNA opportunity sites in this area of the City as well.

IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-14
25105008 –27901 North Lammers Road
The parcel located at 27901 North Lammers Road is approximately 104.1 acres of vacant MDR zoned land in the Tracy Hills Specific Plan . The parcel contains a 5.0 -acre RHNA opportunity site that is anticipated to accommodate 149 lower -income units after rezoning from MDR to HDR . The identified vacant 5.0-acre site is located in the eastern portion of the property along North Lammers Road. The vacant site is surrounded by vacant land and single family residential with agricultural activity. Additionally, the site is adjacent to several other identified RHNA opportunity sites as well as Tracy Hills Phase 5 to the southeast (see Table IV-4). The City is ant icipating and preparing for growth in this area and is currently planning infrastructure improvements to support development and access to these RHNA opportunity sites.

The realistic capacity for the site before rezoning would be 51 moderate -income units, but after rezoning from MDR to HDR, the realistic capacity is 98 net new lower-income units.

IV. Housing Sites and Resources
City of Tracy
IV-15 2023-2031 Housing Element
24014027 – 4720 North Lammers Road
The parcel located at 4720 North Lammers Road is approximately 21.7 acres of M1 zoned land in the Tracy Hills Specific Plan . The parcel contains a 5.0 -acre RHNA opportunity site that is anticipated to accommodate 148 lower-income units after rezoning from M1 to HDR. The identified vacant 5.0- acre site is located in the western portion of the pr operty along S Lammers Rd . The single-family residential site is surrounded by vacant land and other single family residential with agricultural activity. Additionally, the site is adjacent to several other identified RHNA opportunity sites as well as Tracy Hills Phase 5 to the south (see Table IV-4). The City is anticipating and preparing for growth in this area and is currently planning infrastructure improvements to support development and access to these RHNA opportunity sites.

The existing zoning does not allow residential, but after rezoning from M1 to HDR, the realistic capacity is 148 net new lower-income units.

IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-16
25105009 – 28281 North Lammers Road
The parcel located at 28281 North Lammers Road is approximately 26.9 acres of MDR zoned land in the Tracy Hills Specific Plan . The parcel contains a 10.0 -acre RHNA opportunity site that is anticipated to accommodate 298 lower -income units after rezoning f rom MDR to HDR . The identified vacant 10.0-acre site is located in the eastern portion of the property along S Lammers Rd.

The single-family residential site is surrounded by vacant land and other single family residential with agricultural activity. Additionally, the site is adjacent to several other identified RHNA opportunity sites as well as Tracy Hills Phase 5 to the west (see Table IV-4). The City is anticipating and preparing for growth in this area and is currently planning infrastructure improvements to support development and access to these RHNA opportunity sites.

The realistic capacity for the site before rezoning would be 102 moderate -income units, bu t after rezoning from MDR to HDR, the realistic capacity is 196 net new lower-income units.

IV. Housing Sites and Resources
City of Tracy
IV-17 2023-2031 Housing Element

3. Environmental and Infrastructure Constraints
The sites inventory analysis takes into account any environmental constraints such as habitat, flood, noise hazards, and steep slopes. Any environmental constraints that would lower the potential yield have already been accounted for in the site/unit capacity analysis through a reduction of the developable acreage of the site. In general, the deductions in the yield from the maximum will cover and accommodate any reductions in site capacity due to environmental constraints.

According to the Department of Toxic Substances Control’s data management system (EnviroStor), there is only one parcel in the sites inventory that have cleanup, permitting, enforcement, and investigation efforts open and no sites have known or suspected contamination issues.

The 34.2-acre parcel located on Valpico Rd (West of Vela Apartments) previously operated as a gravel mine in the early 1900 ’s and later used to dispose of crude oil tank bottoms. In 1989 a series of environmental assessments were completed. From 2004 to 2009, a series of soil and groundwater investigations have been conducted to delineate the extent of contaminant impacts. Per EnviroStor the affected soil appears to be limited to the northeast section of the site. This should not compromise the development capacity for the portion of the site (southern half) that has been identified in the sites inventory (see 24614001 - West Valpico Road (West of Vela Apartments). Additionally, there is adjacent property owner interest in developing this site.

Therefore, the RHNA opportunity sites inventory has no identified conditions that would preclude or impact housing development.

Fires
The risk of wildland fires is related to a combination of factors, such as winds, temperatures, humidity levels, and fuel moisture content. Of these four factors, wind is the most crucial. Steep slopes also contribute to fire hazard by intensifying the effects of wind and making fire suppression difficult. Features in some parts of Tracy, including highly flammable vegetation and warm , dry summers with temperatures that often exceed 100 degrees Fahrenheit, create situation s that potentially result in wildland fires.

There are no severe fire zones within the City of Tracy, according to the Very High Fire Hazard Severity Zone (VHFHSZ) as shown in Figure IV-1. The City is located just outside a moderat e to high fire hazard zone along the southwest border. Since there are no VHFHSZs within the City, none of the RHNA sites are in these zones.

IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-18
Figure IV-1: Very High Fire Hazard Severity Zones

Flooding
Figure IV-2 displays the flood hazard zones as identified by the Federal Emergency Management Agency (FEMA). The vast majority of Tracy falls into an area with no identified flood risk, but there is a 1 percent chance flood area located in the northernmost portion of the City . There are only two opportunity sites that fall within this designation; however, this should not preclude or constrain the development of any housin g as the built environment is already disturbed and developed.

Additionally, all new construction shall comply with the applicable flood hazard reduction provisions of Tracy Municipal Code Sections 9.52.150 through 9.52.190.

IV. Housing Sites and Resources
City of Tracy
IV-19 2023-2031 Housing Element
Figure IV-2: Tracy Flood Hazards Areas

Infrastructure
All vacant or under utilized land currently available for development in the City of Tracy can be served by the infrastructure necessary for development. Additionally, the City is currently planning infrastructure improvements t hat will service and support the development of the northwestern portion of Tracy Hills in the southern part of the City. Such services are (or will be) in place prior to development and adequate for the potential unit yield on each site. There are several parcels in the opportunity sites that are on septic. They are generally large, single-family parcels, previously part of San Joaquin County ; however, this condition is not anticipated to prevent their development as the sites are all surrounded by newer existing housing all with dry and wet utilities. Water and sewer services are available to all parcels within the City, including each opportunity site in this inventory.

The City has the water and sewer capacity to service the number of units necessary to meet, and substantially exceed, the regional share goals. Dry utilities are also available throughout the City , PG&E, and other service providers and on each RHNA site.

IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-20

4. Entitled and Pending Projects
Per the HCD Sites Inventory Guidebook, the City may credit sites that have been proposed, approved, or given a certificate of oc cupancy since the beginning of the RHNA projected period. 2 The beginning of the RHNA projection period for Tracy is July 1, 2022. Thus, any pending projects that did not receive certificates of occupancy prior to June 30, 2022, are eligible to be counted towards the RHNA. Table IV-8 includes pending projects (proposed, entitled, permits issued) that had not received certificates of occupancy as of June 30, 2022. The City has approved or received multiple applications for housing developments in the City. Pending project unit counts were based on City- approved entitlements, building permits issued, and submitted applications. The City has reviewed the pending projects and there are no known barriers to development, phasing, or other relevant factors that would prohibit the pending projects from being completed. Any phasing or build -out horizons are considered in unit counts. There are 4,274 pending and recently approved units that did not obtain a certificate of occupancy by June 30, 2023. Over 96 percent (4,133) are presumed to be above-moderate income units, resulting in a surplus of 1,384 above moderate-income units above the RHNA.

There are also 141lower-income pending units across two projects, as follows:
• The Junction consists of 56 total units, 23 very low and 23 low income unit s, in a mixed-use development. The units will be deed restricted for no less than 55-years and affordability is included as a condition of approval of the project.
• Tracy Senior Living consists of 110 age-restricted, multi-family a partment units to be available for rent at 50% of the AMI. This project is replacing 15 existing affordable units for a total of 95 net new units. This is a project by the Housing Authority County of San Joaquin (HACSJ), utilizing local and federal funding sources. The project will be completed in two phases of 55-units each. The first phase is anticipated to be completed by mid -2026 with the second phase to follow closely after.

All pending project units are anticipated to be completed in the planning period. The City will monitor the actual units constructed and income/affordability when the pending projects are developed. If the pending projects are not developed or are developed with fewer RHNA units than anticipated, the City will identify additional RHNA sites needed to make up the loss. The City will maintain an independent inventory of suitable backup opportunity site. Replacement or additional sites will be identified from the No Net Loss Inventory List.

Table IV-8: Entitled and Pending Projects
Approved and
Pending Projects Status Very Low Low Moderate
Above
Moderate Total
15 Duplexes, 2 Triplexes
and 1 SFD
Under Review - - - 37 37
The Junction Approved 23 23 - - 46
Avenues Approved - - - 480 480
Byron Road Duplexes Approved - - - 12 12
Byron Road TSM Under Review - - - 46 46
Collin Avenue Duplexes Approved - - - 10 10
East 8th Street Apartments Approved - - - 5 5
Ellis Village Center North Under Review - - - 3 3
Larkspur Basin Lots Approved - - - 14 14

2 HCD Sites Inventory Guidebook, https://www.hcd.ca.gov/community-development/housing- element/docs/sites_inventory_memo_final06102020.pdf
IV. Housing Sites and Resources
City of Tracy
IV-21 2023-2031 Housing Element
Approved and
Pending Projects Status Very Low Low Moderate
Above
Moderate Total
Rocking Horse Approved - - - 226 226
Rod-Singh Apartments Approved - - - 24 24
1000 N. Central Avenue Approved - - - 6 6
Tracy Senior Apartments Under Review 95 - - - 95
SANSUB Apartments Under Review - - - 9 9
Tracy Apartments Under Review - - - 12 12
Tracy Hills Phase 2 Approved - - - 1,517 1,517
Tracy Hills Phase 5 Under Review - - - 1,500 1,500
Red Maple Village
Apartments
Under Review - - - 232 232
Total 118 23 - 4,133 4,274
Source: City of Tracy

5. Accessory Dwelling Units
Tracy has been approving ADUs at an increased pace since passage of recent state laws that remove constraints on ADU production. While the City can meet its RHNA capacity without using ADUs, ADUs will contribute to the 20 percent no net loss buffer and provide a n additional source of affordable housing and housing options across the City.

Production Trends
Table IV-9 illustrates trends in ADU production since 2018. ADU production in Tracy has grown significantly and is expected to continue expanding throughout the 6th Cycle. Additional changes to State law in 2019 led to a significant increase in ADU production in the last three years. Importantly, the City of Tracy issued 120 permits for ADUs in the 2022 calendar year. Additional ADU incentives and public education will further increase ADU production abo ve the recent trends (see Program 12). Based on the average number of building permits for ADUs in the last five years (41.5), the City is conservatively projecting 332 ADUs over the 2023–2031 6th Cycle. The City is not relying heavily on projected ADUs to meet its RHNA (less than 3 percent of the RHNA plus the buffer).

Table IV-9: ADU Building Permit
2018 2019 2020 2021 2022 Average
7 18 10 54 120 41.5
Source: City of Tracy
Assumed Affordability
ADU affordability data specific to Tracy is not available, so the levels of affordability assumed for the 332 ADUs projected during the 6th Cycle is based off the Association of Bay Area Governments’ affordability survey data .3 The City pred icts that this trend will continue and that future ADU production will also be largely affordable to moderate-, low-, and very low -income households.

Many ADU applicants from 2018 to 202 2 indicated intent for the unit to remain affordable at no or negligible cost for immediate family members, such as adult parents or children.

3 ABAG ADU Technical Assistance Memo. https://abag.ca.gov/sites/default/files/documents/2022- 03/ADUs-Projections-Memo-final.pdf
IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-22
Table IV-10: ADU Affordability Assumptions
Percent Income Category # of ADUs
30% Very Low 99
30% Low 99
30% Moderate 99
10% Above Moderate 33
Source: City of Tracy
D. Site Inventory and Rezoning Strategy
Shortfall
The City has a shortfall for portions of its lower- and moderate-income RHNA, which necessitates specific rezoning programs and development standa rds pursuant to Government Code Section 65583.2. Under existing zoning, the City has realistic capacity for 1,126 lower-income units and 655 moderate-income units, creating a lower -income shortfall of 3,747 units and a moderate-income shortfall of 520 units.

The City’s overall strategy is to accommodate the RHNA shortfall through increasing the permitted densities of existing multifamily zones, rezoning limited single -family and commercial areas to multifamily residential , and creating programs to facilitate increased ADU production in single - family zones. These strategies will allow the City to fully meet its housing needs for all income levels during the 6th Cycle Housing Element.

Rezoning will meet all requirements pursuant to Government Code Section 65583.2, subdivisions (h) and (i).

Multifamily and Mixed-Use Density Increase
A key component of the City’s RHNA strategy is to increase the permitted densities of the multifamily zones and to rezone more land to the multifamily zones. Overall, multifamily zones are expected to accommodate 7,664 units, all for lower- and moderate-income housing.

Currently, Tracy’s MDR and MDC zones have maximum densities set to 12 du/acre and the HDR and GHC zones have maximum densities set to 25 du/ac re. The City will increase the maximum densities of these zones to allow for housing at densities suitable for lower-income households and to provide a significant increase in housing capacity across the City. As shown in Table IV-11, the City will increase the maximum densit ies of the MDR and MDC zones from 12 to 20 du/ac re and amend the minimum and maximum densities of the HDR and GHC zones from 12-25 du/acre to 20-35 du/acre.

Table IV-11: Proposed Multifamily Zone Densities
Zone
Existing Density
(Min)
Existing Density
(Max)
Proposed Density
(Min)
Proposed Density
(Max)
MDR 5.9 du/ac 12 du/ac 5.9 du/ac 20 du/ac
MDC 5.9 du/ac 12 du/ac 5.9 du/ac 20 du/ac
HDR 12 du/ac 25 du/ac 20 du/ac 35 du/ac
GHC 12 du/ac 25 du/ac 20 du/ac 35 du/ac
MU-1 - - 20 du/ac 35 du/ac

IV. Housing Sites and Resources
City of Tracy
IV-23 2023-2031 Housing Element
MDR and MDC Rezoning to HDR
In addition to increasing the allowed densities in the multifamily zones (MDR, MDC, HDR, GHC), the City will rezone multiple blocks where a significant amount of housing capacity was identified from MDR and MDC to HDR. These blocks include approximately 109 MDR parcels totaling 78.3 acres and 39 MDC parcels totaling 15.0 acres.

These are as can be characterized as underutilized (building occupies less than 35 percent of the parcel) or vacant lots adjacent to arterial roadways surrounded by other existing residential uses.

This rezoning will provide increased housing capacity in key nodes with excellent access to tra nsit, commercial, and educational facilities.

Of these rezoned MDR and MDC parcels, 46.3 acres (1,336 lower income units) have been identified in the sites inventory as opportunity sites (see Table IV-12).

Rezoning to HDR
The City will also rezone approximately 153.7 additional acres from LDR, PUD, NS, GHC, M1-TH, MDR-TH, and M1 to HDR as shown in Table IV-12. This includes approximately 34.7 acres in zones that do not currently allow for multifamily residential (LDR, M1, HS, and NS). The rezoning of these parcels will provide increased housing capacity (3,465 lower-income units) in prime areas with excellent access to employment centers and educational facilities.

Table IV-12: Opportunity Sites Rezoned to HDR
Existing Zone Acres Very Low Units Low Units Moderate Units Total Units LDR 4.6 84 52 - 136
MDC 5.5 98 64 - 162
MDR 40.5 703 471 - 1,174
PUD 75.4 1,029 641 575 2,245
NS 3.2 59 37 - 96
I-205 - GC 7.9 146 91 - 237
I-205 - CC 19.6 357 227 - 584
M1 21.9 59 59 534 652
M1-TH 5.0 91 57 - 148
MDR-TH 15.0 276 171 - 447
GHC 1.1 17 12 - 29
Total 199.7 2,919 1,882 1,109 5,910

Proposed Mixed Use Zone
Through Program 9, the City of Tracy will create a new mixed-use zone (MU-1) to allow properties to be developed with a mix of commercial retail office and/or residential uses . The allowable residential density will range from 20 to 35 dwellings units per acre similar to the existing HDR and GHC zones (see Table IV-11). The creation of the MU -1 zone will provide a new option for mixed use and multifamily development that doesn’t currently exist in the City.

As shown in Table IV-13, three parcels (40.3 acres) will be rezoned to MU-1 which will provide a mix of lower and moderate-income units. The assumed yield for the new MU-1 zone is based off the GHC zone (50% yield) in Table IV-5 and is significantly less than the observed yields and averages of recent projects shown in Table IV-4.

IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-24
Table IV-13: Opportunity Sites Rezoned to MU-1
Existing Zone Acres Very Low Units Low Units Moderate Units Total Units M1 40.3 141 141 424 706

The City is rezoning to accommodate capacity beyond identified RHNA sites. As the City is increasing the maximum densities of the MDR, MDC, HDR, and GHC zones and rezoning areas to HDR and MU-1, the RHNA sites inventory is only calculating the impact of the zoning changes on the specifically identified and listed opportunity sites; not all parcels that are rezoned are counted in the RHNA. As such, other parcels within these zones will also benefit from the zonin g changes and may develop during the 6 th Cycle planning period. The total capacity of additional rezones is about 880 units. This includes the following:
• 36.0 acres of MDR to HDR (maximum capacity of 720 units) • 8.0 acres of MDC to HDR (maximum capacity of 160 units) E. Ability to Meet the RHNA
Using the realistic assumptions listed above, the City will have adequate sites to accommodate the RHNA for all income levels after rezoning.

Many factors outside the City’s control influence a property owner ’s desire and ability to develop, including market conditions and constraints.

The new residential capacity associated with the rezoning program creates a strong market incentive for these properties to be developed or redeveloped within the planning period.

Table IV-14 illustrates the residential capacity that is being counted toward the RHNA. The City has adequate sites at all income levels. The inventory includes a total lower -income capacity of 6,464 units. The inventory also supports 4,166 above-moderate units, exceeding the RHNA requirement of 2,782 units. The 1,384 excess moderate units can provide a buffer for any net loss of units with above-moderate capacity.

Table IV-14: RHNA Capacity and Buffer
Type Very Low Low Moderate
Above
Moderate Total
A 5th Cycle Carryover 250 250 - - 500
B RHNA 2,994 1,879 1,175 2,782 8,830
C Pending Projects (Table IV-8) 118 23 - 4,133 4,274
D ADUs (Table IV-9) 99 99 99 33 330
E Unmet RHNA (B-C-D) 2,777 1,757 1,076 - 5,610
F RHNA + 5th Cycle Carryover +
Buffer
3,799 2,480 1,390 2,782 10,452
G Opportunity Sites Capacity (H+J) 3,687 2,438 1,539 - - 7,664 H Vacant Opportunity Sites (Table
IV-16)
2,858 2,926 1,892 1,539 - 6,289
J Non-Vacant Opportunity Sites
(Table IV-17)
829 546 - - 1,375
K Total Capacity (C+D+G) 3,904 2,560 1,638 4,166 12,268 L Surplus of RHNA (K-B) 910 681 463 1,384 3,438
M % Buffer Above Unmet RHNA
(F–E)/E

23.8% 24.5% 43.0% - -

IV. Housing Sites and Resources
City of Tracy
IV-25 2023-2031 Housing Element
F. Overall Capacity
Opportunity Site Details
The opportunity site selection process examined zoned capacity, existing uses, and recent development trends to determine which parcels to include to meet the remaining RHNA after considering pending projects and ADUs. Both vacant and non -vacant sites are included in the Opportunity Sites Inventory. The opportunity site selection process took site characteristics, surrounding uses, and development constraints into consideration when evaluating each si te’s development potential. To meet the RHNA for lower -income households, the Opportunity Sites Inventory relies on sites with densities that allow for at least 20 du/acre. To meet the RHNA for moderate-income households, the inventory relies on sites zoned for up to 20 du/acre in the medium density General Plan land use category. In addition, sites zoned for up to and greater than 20 du/acre but smaller than 0.5 acre or larger than 10.0 acres were counted toward the moderate-income household RHNA.

For a d etailed analysis of the sites as they relate to affirmatively furthering fair housing, see the Affirmatively Furthering Fair Housing chapter.

Lower Income Capacity
Government Code Section 65583.2(g)(2) states that housing elements relying on non-vacant sites for greater than 50 percent of its lower -income households need to demonstrate that the existing use does not constitute an impediment to additional residential development. The requirements of Government Code Section 65583.2(g)(2) do not apply to Tracy, since only 23.5 percent of the proposed lower -income RHNA sites (including the buffer) are met through non -vacant sites (1,375/5,847 = 23.5 percent). The remaining lower-income (low and very low) RHNA units are met through pipeline projects, ADUs, and vacant sites, as illustrated elsewhere in this chapter.

Table IV-15: Lower Income RHNA Capacity
Category
Very Low
Income
Capacity
Low Income
Capacity
Total Lower
Income
Capacity
% of Lower
Income
RHNA
(6,279 units)
Pipeline Projects (Table IV-8) 118 23 141 2.2%
ADUs (Table IV-9) 99 99 198 3.2%
Vacant Opportunity Sites (Table IV-15) 2,858 1,892 4,750 75.6% Non-Vacant Opportunity Sites (Table IV-16) 829 546 1,375 21.9% Total Lower Income Sites 3,904 2,560 6,464 102.9%

Moderate and Above Moderate Income Capacity
Pursuant to Government Code Section 65583.2(c)(4), at least 25 percent of the remaining moderate- and above moderate-income RHNA sites are zoned for at least four units of housing (e.g., fourplex or greater). As shown in Table IV-2, above moderate-income sites are met entirely through pending projects and ADU projections ( 4,133 and 33 units, respectively). The 4,166 units exceed the above moderate-income RHNA allocation ( 2,782) by 1,351 units. There is no remaining above moderate - income RHNA that needs to be identified.

There is a remaining need of 1,076 moderate-income units after pending projects and projected ADUs. The Opportunity Sites Inventory identifies 1,539 moderate-income RHNA opportunity site IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-26
units, all of which will allow for at least four units of development once rezoned. Thus, the City is compliant with Government Code Section 65583.2(c)(4).

Vacant Sites
A portion of the RHNA will be met on vacant land that is zoned for r esidential use. Per HCD’s Housing Element Sites Inventory Guidebook, a vacant site is one “without any houses, offices, buildings, or other significant improvements […] or structures on a property that are permanent and add significantly to the value of the property.” 4 Table IV-16 displays the capacity of residentially zoned vacant sites included in the Opportunity Sites Inventory. A to tal of 6,289 lower- and moderate-income units can be accommodated with currently vacant land with the existing and proposed zoning. This includes 2,858 very low-units, 1,892 low-units, and 1, 539 moderate-income units.

Table IV-16: Vacant Site Capacity
Zone (Existing &
Proposed)
Very Low Income
Capacity
Low Income
Capacity
Moderate Income
Capacity Total Capacity
HDR 2,214 1,423 1,109 4,746
MU-1 141 141 424 706
CBD 32 30 - 62
GHC 135 90 6 231
Tracy Hills Specific
Plan (HDR-TH)
218 134 - 352
Tracy Hills Specific
Plan (MUBP-TH)
118 74 - 192
Total 2,858 1,892 1,539 6,289

Non-Vacant Sites
A total of 1,375 lower-income units will be met by non -vacant RHNA opportunity sites ; this i s approximately 28 percent of the lower-income RHNA (4,873). All 1,375 of the potential units on the non-vacant opportunity sites are being allocated toward the lower-income RHNA (829 very low– and 546 low-income). As shown in Table IV-17, the 1,375 units are located in the HDR zone (1,202 units), the CBD zone (25 units), and the GHC zone (148 units).

Table IV-17: Non-Vacant Site Capacity
Zone (Existing & Proposed) Capacity
HDR 1,202
CBD 25
GHC 148
Total 1,375

Non-Vacant Site Details
A majority of the existing uses on non-vacant opportunity sites fall into three categories. Table IV-18 details the three use categories that were identified as well as the number of parcels for each, the total

4 HCD. Housing Element Sites Inventory Guidebook. https://www.hcd.ca.gov/community-development/housing- element/housing-element-memos/docs/sites_inventory_memo_final06102020.pdf .

IV. Housing Sites and Resources
City of Tracy
IV-27 2023-2031 Housing Element
acreage of parcels, as well as the anticipated number of lower-income units. Table IV-18: Non-Vacant Opportunity Site Details
Existing Use # of Parcels Acreage
# of
Low Income Units
Single-family residential 37 35.6 970
Religious/Education Facilities 3 5.2 155
Commercial/Office/Retail 6 11.6 268
Total 46 52.4 1,393

As most of the properties within each category included toward the RHNA are similar, this Housing Element describes examples from each typology, instead of describing each site in detail. Each of the commercial, religious, and multifamily non -vacant sites have a similar lack of impediments to redevelopment. Specifically, many sites with existing single and multifamily residential uses are similar and can be grouped together for the purposes of the non -vacant sites analysis. The commercial sites are each majority underutilized surface parking lots prime for redevelopment.

The site selection process considered four different factors that indicate high potential for near-term redevelopment of the sites. Each of these four factors alone indicate positive potential for redevelopment of a site. All of the non-vacant sites included in the inventory have at least three of the four indicators of redevelopment.

1. Significant underutilization. The building takes up less than 30% of the parcel . On many parcels in the inventory, the site could be redeveloped and maintained the existing use.

2. Land-improvement ratio (LIR). All sites included have a LIR that is greater than one , meaning that the land is greater in value than the improvements (buildings/structures).

3. Similarity to recently developed non -vacant sites. The City has seen a number of recent residential projects develop on prior non -vacant uses. These projects have similar uses and characteristics to the sites included in the RHNA inventory. a. Tracy Senior Living Apartments
b. Byron Road Duplexes
c. Byron Road TSM
d. Tracy Apartment

4. Age of the existing structure. A building that is older than 30 years old.

Single-family Residential
There are many sites with existing single-family uses that provide redevelopment opportunities. As a part of Program 9, these sites will be rezoned to accommodate additional units. The rezoning will also make the redevelopment of these sites more financially feasible. As existing uses do not significantly vary site by site, the section below describes three examples of sites with similar characteristics to other single -family homes in the area. Characteristics include an existing, non - conforming use, a parcel larger than 0.5 acres, and significant amounts of vacant land on the parcel.

The existing uses are not anticipated to act as an impediment to redevelopment of the parcels.

Additionally, the City has seen recent redevelopment of residential uses into lower-income housing in the Tracy Senior Living Project. This project consis ts of demolishing 15 existing residenti al units and replacing them with 110 affordable units.

Note that the single -family homes in the MDR, which has a minimum density of 5.9 du/acre may already be a non-conforming use. The increased density in these zones will increase the capacity for IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-28
high density housing in areas with already non -conforming uses. The upzone from MDR to HDR provides capacity for an additional 589 units beyond what is currently allowed.

There are a total of 37 sites with existing residential uses included in the RHNA. These sites provide capacity for 970 new lower-income units.

Berg Road Cluster
The parcels at 1241, 1240, 1191, 1180,
1121, and 1150 Berg Road, and 2881
Fabian Road range in size from 0.5 to 2.6
acres in area. Because they are in close
proximity to one another, there is an
opportunity and strong incentive for
consolidation of adjacent lots . The sites
are near a grocery store and several
daycares and parks, which provide
necessary resources for residents. The
structures vary in age, wi th many built
prior to 1949. The combined acreage is

6.2 acres. The land improvement ratio
for these sites range from 0.8 to 3.0. The
combined realistic capacity for these
sites is 181 units. All of these parcels will
be rezoned from MDR to HDR, resulting
in a minimum density of 20 du/acre and a maximum density of 35 du/acre. 1121 Berg Road
This 0.79-acre site is currently partially occupied by a manufactured home that appears to be currently vacant. The majority of the lot is vacant, underutilized land. It is located within an existing residential community, making this site optimal for further residential development and potential lot consolidation. The realistic c apacity for the site before rezoning would be 7 moderate-income units, but after rezoning from MDR to HDR, the realistic capacity is 23 net new lower-income units.

IV. Housing Sites and Resources
City of Tracy
IV-29 2023-2031 Housing Element
2881 Fabian Road
This 1.07-acre site is currently occupied by three units , and the majority of the parcel is vacant, underutilized land. It is located within an existing residential community, making this site optimal for further residential development and potential lot consolidation. The realistic capacity for the site before rezoning would be 8 moderate-income units, but after rezoning from MDR to HDR, the realistic capacity is 29 net new lower-income units.

1150 Berg Road
This 1.23-acre site is currently partially occupied by a single-family home. The majority of the lot is vacant, underutilized land. It is located within an existing residential community, making this site optimal for further residential development and potential lot consolidation. The realistic capacity for the site before rezoni ng would be 12 moderate-income units, but after rezoning from MDR to HDR, the realistic capacity is 36 net new lower-income units.

Religious and Educational Facilities
The designated opportunity sites that are currently being used by a church or educati onal facility span the Low Density Residential ( LDR), Medium Density Residential ( MDR), and High Density Residential (HDR) zones. Parcels that are not currently zoned HDR will be rezoned to HDR . These parcels are largely underutilized lots with smaller building footprints (<30% lot coverage). It is possible the existing uses could be maintained with the redevelopment of the parcel. The existing uses are not anticipated to act as an impediment to redevelopment of the parcels.

There are three sites with existing uses by a church or school in the RHNA. These sites provide capacity for 155 net new lower-income units.

IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-30
489 and 491 West Mount Diablo Avenue
The parcels at 489 and 491 W est Mount
Diablo Avenue are adjacent to one another,
and to several other vacant and non -vacant
sites, which create the opportunity for a
larger, consolidated development . These
sites are near a grocery store, a daycare, and
several schools, which provide nece ssary
resources for residents. Each parcel has a
single-story, church-owned structure which
both occupy less than 10 percent of the lot
area. The majority of each parcels is
underutilized land. The buildings were built
between 1993 and 2005 and have had no
apparent significant improvements to the
structure since construction.

The parcels are 0.85 and 0.57 acres,
respectively; there is a combined 4 acres
among the seven adjacent selected parcels.

The realistic capacity for these site s before
rezoning would be 16 and 11 moderate-
income units respectively, but after rezoning
from MDR to HDR, the realistic capacity is 42 net new lower-income units.

Merrill F West High School
This 3.8-acre site is a non-contiguous
parcel currently partially occupied
by Merrill F West High School. The
southeastern portion of the parcel
(shown in the image) is located
across the street from the high
school. No piece of the parcel
currently occupied by the school is
included in the RHNA calculations,
only the non -contiguous, vacant
piece of the parcel is included in
calculations for the RHNA. This
vacant piece of land on the south side
of W est Lowell Ave is currently
owned by the Tracy Unified School
District. This vacant 3. 8-acre portion
of the parcel is underutilized and is located adjacent to existing single family residential as well as a bus stop at the intersection of West Lowell Ave and Lincoln Blvd, making this site optimal for further residential development. The realistic capacit y for the site before rezoning would be 1 9 above moderate-income units, but after rezoning from LDR to HDR, the realistic capacity is 94 net new lower-income units.

IV. Housing Sites and Resources
City of Tracy
IV-31 2023-2031 Housing Element

Commercial/Office/Retail
The majority of the designated opportunity sites that have existing commercial development are in the Central Business District ( CBD) or General Highway Commercial ( GHC) zones, which also currently allow residential development. The CBD zone allows development with a minimum density of 15 du/ac re and a maximum density of 50 du/ac re. The GHC zone currently allows residential development at 12–25 du/acre, but it is being upzoned to allow development between 20 and 35 du/acre. The existing uses are not anticipated to act as an impediment to redevelopment of the parcels.

For the commercial and office non-vacant sites, the land-improvement ratio (LIR) was used to determine the underutilization of a site. The comparison of assessed values for land and improvements (land-improvement ratios) is a reliable indicator of whether and to what extent sites are utilized. Typically, a newly improved site will have a ratio of well under 0.2, or where the improvements are valued at five times the value of the land. All of the commercial and office sites included have a LIR greater than one, meaning that the land is worth more than the improvements (existing buildings/structures) on the site.

The one exception to this is a medical office site located at 2185 W Grant Line Rd, which has a LIR of 0.47. However, anticipated development is only being included on the vacant portion of this site.

While the site totals 9 acres only 2.9 acres is included in the RHNA sites inventory. This portion of the site is vacant, dirt land with no existing structure of use. It is adjacent to multiple vacant, RHNA opportunity sites that are also being upzoned.

There are a total of six sites with existing commercial uses included in the RHNA. These sites provide capacity for 268 new lower-income units.

IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-32
West Byron Road Corridor
The parcels at 2640 and 2520
West Byron Road are
adjacent to several RHNA
opportunity sites, which
provides for a la rger lower-
income multi family
community. The sites are
located along a major
thoroughfare and are within
one mile of local amenities
including a grocery store, a
bank, a school, and several
restaurants, which provide
necessary resources for
residents. Additionally, these
sites are surrounded by
single family residential .

Their combined acreage is 1.8 acres. The combined realistic capacit y after the proposed rezoning from GHC to HDR is 48 new lower-income units.
2640 West Byron Road
This 1.1-acre site is occupied with a structure that was built prior to 19 82 and is currently a market, liquor store, and U-Haul pick up location. Since 2007 the building has had three different tenants. A large percent of the lot is used as parking, sheds, or laydown areas and is underutilized land. It is adjacent to an existing residential community, making this site optimal for further residential development. The land-improvement ratio is 1.5. The realistic capacity for this site is 18 new lower- income units.

IV. Housing Sites and Resources
City of Tracy
IV-33 2023-2031 Housing Element
2250 West Byron Road
This 1. 7-acre site is occupied with a structure that was built prior to 19 57 and is currently an automotive recycle center. Over 90 percent of the lot is used as staging areas for cars and car parts and is underutilized land. It is adjacent to an existing residential community, making this site optimal for further residential development. The land -improvement ratio is 1. 7. The realistic capacity for this site is 30 new lower-income units.

104 West 11th Street
The three consolidated parcels at this
address currently total 0.69 acres. The non-
vacant parcel is currently partially
occupied by a structure that was built prior
to 1957 and is currently vacant. About half
of the lot is a parking lot or for vehicle
access and is underutilized. It is near an
existing residential community, making
this site optimal for further residential
development. The land-improvement ratio
is 1.61. The realistic capacity for these
combined parcels is 19 net new lower -
income units.

IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-34
306 West Sixth Street
The three consolidated parcels at
this address currently total 1.3-
acres. The non -vacant parcel is
currently partially occupied with a
structure that was built prior to
1982 and is currently dilapidated
and vacant. Over 90 percent of the
lot is paved and deemed under-
utilized land. It is adjacent to an
existing residential community,
making this site optimal for further
residential development. The land-
improvement ratio is 1. 58. The
realistic capacity for this site is 12
new lower-income units.

G. Financial Resources
The Housing Element serves, in part, to identify what actions can be taken to support the production of housing. Through collaboration with City staff, service providers, and the community, the City’s Housing Element identifies financial resources that support housing production.

1. Administrative Resources
The City of Tracy’s Development Services Department is responsible for implementing City policies that direct the physical development and community character of the City. This includes reviewing land use proposals and implementation of City development policies , including the General Plan .

The Building Safety Division processes and issues building permits, conducts plan reviews, and conducts building inspections, The City Police Department resolves land use-related violations through the Code Enforcement Division.

2. Countywide Programs
Housing Authority of the County of San Joaquin
The Housing Authority of the County of San Joaquin (HACSJ) is the agency responsible for providing decent, safe, and affordable housing for low -income, elderly, and disabled individuals and families. The HACSJ manages the Housing Choice Voucher (HCV) program, providing rent

IV. Housing Sites and Resources
City of Tracy
IV-35 2023-2031 Housing Element
subsidies in the form of housing assistance payments to private landlords on behalf of eligible families. The HCV program provides housing assistance to extremely low - and very low -income families, senior citizens, and disabled persons. Its objective is to provide affordable, decent, and safe housing for eligible families, while increasing residential mobility and choice.

Housing Choice Voucher
The Housing Choice Voucher (HCV) program is the federal government’s major program for assisting very low -income families, elderly, and disabled households to afford decent, safe, and sanitary housing in the pr ivate market. A housing subsidy is paid to the landlord directly by the HACSJ on behalf of the participating household. The household then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program. This is generally 30 percent of their adjusted income. Households who participate in the HCV program are selected from the HACSJ’s waitlist.

3. Statewide Resources
There are a variety of statewide programs and resources available. The City receives regular notification regarding state and federal funding and grant opportunities. Additionally, the City pursues grants on a programmatic and project basis for active programs and projects.

Senate Bill (SB) 2 Grant
In 2017, a 15-bill housing package was signed into law ai med to address the state’s housing issues; the package included the Building Homes and Jobs Act. This established a $75 recording fee on real estate documents to increase the supply of affordable homes in California.

This funding was designed to help cities and counties accomplish the following:
• Accelerate housing production;
• Streamline the approval of housing development affordable to owner and renter households at all income levels;
• Facilitate housing affordability, particularly for lower- and moderate-income households; • Promote development consistent with the State Planning Priorities (Government Code Section 65041.1); and
• Ensure geographic equity in the distribution and expenditure of the funds.

Local Early Action Planning Grant
The Local Early Action Planning (LEAP) grant provides one -time grant funding to cities and counties to update their planning documents and implement process improvements that will facilitate the acceleration of housing production and help local governments prepare for their 6th Cycle RHNA, much like the SB 2 planning grants.

The 2019-20 Budget Act provides a spectrum of support, incentives, resources, and accountability to meet California’s housing goals. Some specific elements include:
• Local and regional planning grants (LEAP and REAP)
• Pro-housing preference points on competitive funding applications • Additional funding resources
• Accountability (penalties for noncompliant housing plans) • Reform (collaborative processes to reform regional housing needs) IV. Housing Sites and Resources
City of Tracy
2023-2031 Housing Element IV-36

4. Department of Housing and Urban Development Grants
HOME Investment Partnership Act (HOME)
HOME, like CDBG, is a formula -based block grant program. HOME funds must be spent only on housing, and are intended to provide incentives for the acquisition, construction, and rehabilitation of affordable rental and home ownership. HOME requires lo cal governments to provide matching funds, though the matching ratio depends on the specific uses to which HOME funds are to be put.

The federal-to-local matching ratio for tenant assistance is currently four-to-one, while the match for rental construction is two-to-one. The City participates in the HOME program through San Joaquin County and received an estimated $180,173 in fiscal year 2023-2024.

Community Development Block Grant (CDBG) Funds
CDBG is the largest federal housing -related program for afforda ble housing. It is a "pass -through" program that allows local governments to use federal funds to alleviate poverty and blight. HUD makes allocations based on a formula that takes population, poverty, and housing distress into account. CDBG funds are used for a variety of housing efforts including activities aimed at reducing costs for private development (helping fund site acquisition, improvement, and other soft costs); housing acquisition and rehabilitation through short - and long -term loans, grants or l oan guarantees; direct payment of rent or mortgage and housing counseling services; and fair housing activities. Tracy receives CDBG funds through the San Joaquin Urban County program. The City uses 15 percent of its CDBG funds for public services with the remainder of the allocation going toward public facilities. Tracy received an estimated $4 95,584 in CDBG funding in the 2023 -2024 fiscal year.

H. Energy Conservation
Energy Conservation State law (Government Code Section 65583(a)(7)) requires a Housing Element to provide an analysis of opportunities for energy conservation in residential development. Not only do such energy conservation measures reduce consumption of non-renewable or limited resources, but they can also substantially lower housing maintenance costs.

Pacific Gas and Electric (PG&E) provides electrical and gas service for the City. PG&E also provides several programs, incentives, and rebates for qualified renters and homeowners to save energy and money.

As of January 1, 2020, the State of California began requiring solar on newly constructed low -rise residential buildings including single -family homes, duplexes, townhouses of three stories or less, and ADUs, through the 2019 California Building Standards Energy Code (Title 24, Part 6). The City has adopted the 2022 California Building Code , including the 2022 California Green Building Standards Code (Title 24, Part 11) , which intends to improve public heal th, safety , and general welfare by enhancing the design and construction of buildings through the use of building concepts having a reduced negative impact or positive environmental impact and encouraging sustainable construction practice in planning, ener gy efficiency, water efficiency and conservation, material conservation and resource efficiency, and environmental quality.

The City has a number of local efforts to encourage energy conservation through its Water Conservation and Efficiency Rebates and Incentives . These are programs for qualifying single - family, multifamily, commercial, and industrial properties. Programs include a n Ultra Low-Flush Toilet Rebate Program, a Smart Irrigation Controller Replacement Program, a Lawn and Turf Removal and Replacement Program, and a Water Use Survey Program.

IV. Housing Sites and Resources
City of Tracy
IV-37 2023-2031 Housing Element
Additionally, the City adopted a Sustainability Action Plan in 2011 to achieve sustainability in the sectors of greenhouse gas emissions, energy, transportation and land use, solid waste, water, agriculture and open space, biological resources, air quality, public health, and economic development.

The San Joaquin County Human Services Agency, through its Home Energy Assistance Programs, operates a weatherization program. The weatherization program can assist income-qualifying renters or owners by installing energy -saving measures and through repairs to homes, multiunit dwellings, and mobile homes. Weatherization efforts include repair or replacement of a refrigerator, stove, water heater, or microwa ve, insulation, minor home repair, LED light bulbs , smoke and carbon monoxide detectors, shade screens, and weather-stripping.

V. Housing Plan
City of Tracy
V-1 2023-2031 Housing Element
V. Housing Plan
The City of Tracy’s long -term housing goal is to provide housing that fulfills the diverse needs of the community. In the short term, this will be accomplished with the objectives, policies, and programs set forth in this Housing Plan. The goals, policies, and programs in the Plan build upon the identified housing needs in the community, constraints confronting the City, and resources available to address the housing needs, and will guide City housing pol icy through the 2023-2031 planning period.

Goals are statements of community desires which are broad in both purpose and aim, but are designed specifically to establish direction. Policies provide specific standards and/or end states for achieving a goal. Essentially, goals represent desired outcomes the City seeks to achieve through the implementation of policies. Further articulation of how the City will achieve the stated goals is found in the programs. Programs identify specific actions the City will undertake toward putting each goal and policy into action. Quantified objectives identified in particular programs are estimates of assistance the City will be able to offer, subject to available financial and administrative resources.

To make adequate provision for the housing needs of all economic segments of the community, the programs in the Housing Plan aim to:
• Conserve and improve the condition of the existing affordable housing stock; • Assist in the development of housing for low- and moderate-income households; • Identify adequate sites to encourage the development of a variety of types of housing for all income levels;
• Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing; and • Promote housing opportunities for all persons.

Table V-2 at the end of this section summarizes the quantified objectives of the various housing programs for the period of December 31, 2023 through December 31, 2031.

A. Conservation of the Existing Supply of Housing
Conserving and improving the housing stock is an important goal for the City of Tracy. The City supports neighborhood preservation and improvement through code enforcement.

Goal 1.0 Conserve and improve the condition of the existing housing stock, especially affordable housing.

Policy 1.1 Promote the continued maintenance and enhancement of residential units.

Policy 1.2 Work to preserve affordable units in publicly assisted housing developments that are at risk of converting to market-rate housing.

Policy 1.3 Facilitate the removal of existing housing that poses serious health and safety hazards to residents and adjacent structures.

Policy 1.4 Work with property owners and nonprofit housing providers to preserve existing housing for low and moderate income households.

Policy 1.5 Promote energy conservation in housing.

V. Housing Plan
City of Tracy
202-2031 Housing Element V-2
Program 1: Housing Rehabilitation
The San Joaquin County Home Rehabilitation Program assists property owners in making residential building improvements. It o ffers low interest (two percent) amortized and deferred payment loans. The program is designed to make needed renovations affordable for low income homeowners (up to 80 percent AMI). San Joaquin County will make rehabilitation loans that, combined with the existing mortgage, do not exceed 110% of the value of the property.

Objectives and Timeframe:
• Assist 15 lower income households in Tracy with the rehabilitation of their homes during the planning period.

Responsible Agency: San Joaquin County Neighborhood Preservation Funding Sources: Urban County CDBG
Program 2: Code Enforcement
The Code Enforcement Division handles the enforcement of the City's zoning regulations and building and housing codes. Complaints received are investigated for possible violations and compliance is handled first by direct person to person visit or by telephone to discuss the violations and obtain voluntary compliance. The Code Enforcement Division also works with other city departments and outside state and county agencies.

Objectives and Timeframe:
• Investigate possible code violations.
• Disseminate information on available housing rehabilitation assistance to address code violations and other housing issues.

Responsible Agency: Tracy Code Enforcement Division
Funding Sources: General Fund
Program 3: Graffiti Abatement Program
The majority of graffiti is done by graffiti vandals known as "taggers." The City of Tracy operates a Graffiti Abatement Program. Residents can report any graffiti around the City on public or private property to the City’s Graffiti Hot Line. This hot line is available 24 hours a day and is completely anonymous.

Objectives and Timeframe:
• Continue to operate the Graffiti Hot Line and promote program through City website and social media platforms.

Responsible Agency: Operations and Utilities Department Funding Sources: General Fund
Program 4: Affordable Housing Monitoring
The City of Tracy has seven publicly assisted housing developments, with a combined total of 659 units that are set aside as affordable for lower income households. Project-based Section 8 contract for the 87-unit Tracy Garden Apartments will expire in July 2028. In 2031, the Low Income Housing V. Housing Plan
City of Tracy
V-3 2023-2031 Housing Element
Tax Credits (LIHTC) for the Chesapeake Bay Apartments complex are set to expire, which would impact 138 two -bedroom units and 12 three -bedroom affordable units. Therefore, 237 affordable units in Tracy are considered at-risk of becoming market rate during this 6th Housing Element cycle.

The City will work to preserve the long -term affordability of its affordable hou sing inventory, including 237 units at risk during this planning cycle.

Objectives and Timeframe:
• Annually monitor status of affordable units by maintaining contact with property owners and updates from HUD’s Multi-Family Housing division.
• If a Notice of Intent is filed to opt out of low income housing use , work with property owners to ensure compliance with n oticing requirements (three years, one year, and six months advance notices required).
• Annually solicit interest and participation of nonprofit housing developers to acquire and preserve housing to be maintained as affordable units.
• Annually pursue funding available from state and federal programs to improve and preserve existing affordable housing.

Responsible Agency: Tracy Economic Development Division Funding Sources: General Fund
B. Assist in the Development of Affordable Housing
Providing affordable housing is essential for a healthy community. In addition to a diverse mix of housing types, it is necessary to make available housing for residents of all income levels. Seeking funding from varied sources increases the opportunities for development o f affordable housing units. The Tracy Development and Engineering Services (DES) Department actively works with both non-profit and for-profit developers in the production of affordable for-sale and rental housing.

Recognizing that homeownership plays a significant role in establishing strong neighborhoods and a sense of community pride, the City supports programs that make purchasing a home a realistic option for lower and moderate income households.

Goal 2.0 Assist in the provision of housing that meets the needs of all economic segments of the community.

Policy 2.1 Facilitate homeownership opportunities for low and moderate income households.

Policy 2.2 Use density bonuses and other incentives to facilitate the development of new housing for extremely low, very low, and low income households.

Policy 2.3 Work with non-profit and for-profit developers to maximize resources available for the provision of housing affordable to lower income households.

Policy 2.4 Address the housing needs of special popul ations and extremely low income households through a range of housing options, including emergency shelters, transitional housing, supportive housing, and single-room occupancy units.

Policy 2.5 Promote the use of energy conservation features in the desig n of residential development to conserve natural resources and lower energy costs.

V. Housing Plan
City of Tracy
202-2031 Housing Element V-4
Program 5: DAP Loan Program
The Tracy Down Payment Assistance (DAP) Loan Program provides deferred down payment assistance loans, for 20 percent of the sales price up to $40,000 (whichever is the lesser), to low income, first-time homebuyers for the purchase of a home in Tracy. The loans are intended to bridge the “gap” between the cost of a home and what a low income household can afford. The program is administered by the San Joaquin County Neighborhood Preservation Division.

Objectives and Timeframe:
• Provide down payment assistance to ten qualified lower income households (up to 80 percent AMI) during the Housing Element planning period. • Disseminate information through City website and social media platforms.

Responsible Agency: San Joaquin County Neighborhood Preservation Funding Sources: Urban County HOME funds
Program 6: Homebuyer and Financial Literacy Training
Homebuyer and financial literacy education represents a key step to introducing households to the challenges, responsibilities, and benefits of homeownership. These programs also serve as critical components of asset-building, helping families build wealth – savings and equity – rather than living paycheck to paycheck. In particular, homebuyer education programs help first-time buyers evaluate their financial readiness, understand the h ome buying process, explore different financing options, access homebuyer assistance programs, resolve credit issues, and avoid predatory lending practices.

Other asset-building education programs address financial literacy more broadly. Homebuyer and financial literacy programs are best offered in tandem with demand -side initiatives such as a down payment assistance program.

Objectives and Timeframe:
• Require a “Certificate of Completion” from a HUD -approved homebuyer class in order to participate in the DAP Loan Program.
• Partner with qualified local non-profit agencies to offer homebuyer education classes and publicize the availability of these classes to residents.

Responsible Agency: San Joaquin County Neighborhood Preservation Division ; Visionary Home Builders ; Neighbor Works ; NID-HCA (Housing Counsel Agency)
Funding Sources: Urban County HOME funds
Program 7: Affordable/Workforce Housing
The City will continue to facilitate the development of affordable housing in the community through a number of strategies:
• Density bonus incentives
• GMO exemptions and exceptions for affordable housing units • Support in funding applications by nonprofits
• Expedited review of affordable housing development
V. Housing Plan
City of Tracy
V-5 2023-2031 Housing Element
Furthermore, on March 2, 2021 , the City Council approved a scope of work for an action plan to address affordable/workforce housing . Some of the actions are already included in the rezoning program to accommodate the RH NA under Program 11: Adequate Sites for RHNA. Additional actions to pursue over the 2023-2031 planning period include:

These include:
• Amend Zoning Ordinance to permit high density housing by right in certain commercial zones.
• Update the Zoning Ordinance with the most recent State law changes regarding ADUs (Program 12).
• Rezone two sites, currently zoned Industrial, to accommodate the City’s 5th cycle RHNA (Program 9).
• Increase maximum densities in higher density residential zones (Program 9). • Remove minimum lot size in favor of floor area ratio and/ or units per acre in re sidential zones.
• Increase minimum density in medium density residential zones (Program 9). • Allow and encourage duplexes, triplexes, and fourplexes in new single-family home subdivisions.
• Create and apply an overlay zone that allows clusters of tiny homes. • Amend the City’s parking ordinance to reduce the num ber of off -street parking spaces required for new multi-family housing development projects (Program 14). • Develop objective design standards for multi-family development (Program 15). • Consider inclusionary housing (Program 13).

Objectives and Timeframe:
• Pursue rezoning and zon ing code amendments as outlined in various p rograms to facilitate affordable and workforce housing.
• Annually during City budgeting process, prioritize actions to pursue to expand housing choices and opportunities.
• Facilitate the development of 500 affordable housing units over eight years, with the goal of prioritizing housing for persons with special needs.

Responsible Agency: Tracy Development Services Department Funding Sources: General funds
Program 8: Housing Choice Voucher Program
The City of Tracy contracts with the Housing Authority of the County of San Joaquin (HACSJ) to manage the Housing Choice Voucher (HCV) program, which provides rent subsidies in the form of housing assistance payments to private landlords on behalf of eligible families. The HCV program, funded by HUD, provides housing assistance to extremely low and very low income families, senior citizens, and disabled or handicapped persons. Its objective is to provide affordable, decent and safe housing for eligible families, while increasing a family’s residential mobility and choice. The V. Housing Plan
City of Tracy
202-2031 Housing Element V-6
Voucher Program also includes programs such as Family Self -Sufficiency and Welfare to Work.

These are designed to assist families in becoming economically self-sufficient.

Objectives and Timeframe:
• Disseminate information to the public regarding the HCV program and promote participation by rental property owners.
• By the end of 2024, create a Fair Housing Factsheet to be included in the ADU application packet.
• Annually contact the HACSJ to obtain information on the status of the HCV program and other available resources.
• Continue to support HACSJ’s petition for increased funding from HUD. • Continue to work with HACSJ to provide HCVs to Tracy residents , with the goal of increasing HCV use in the City by 20 percent by the end of 2031. • Continue to work with the HACSJ to assist house holds through the Family Self - Sufficiency Program.

Responsible Agency: Housing Authority of the County of San Joaquin Funding Sources: HUD funds
C. Provide Adequate Housing Sites
A key element in meeting the housing needs of all segments of the community is the provision of adequate sites for all types, sizes and prices of housing. Persons and households of different ages, types, incomes, and lifestyles have a variety of housing needs and preferences that evolve over time and in response to changing life circumstances. Providing an adequate supply and diversity of housing accommodates changing housing needs of residents. The Tracy General Plan and Zoning Ordinance, as well as Specific Plans, establish where housing may locate. To provide adequate housing and maximize use of limited land resources, new development should be constructed at appropriate densities that maximize the intended use of the land.

Goal 3.0 Provide suitable sites for housing development which can accommodate a range of housing by type, size, location, price, and tenure.

Policy 3.1 Provide for a range of residential densities and products, including low -density single-family uses, moderate -density townhomes, and higher -density apartments, condominiums, and units in mixed-use developments.

Policy 3.2 Encourage development of residential uses in strategic proximity to employment, recreational facilities, schools, n eighborhood commercial areas, and transportation routes.

Policy 3.3 Encourage compatible residential development in areas with recyclable or underutilized land.

Policy 3.4 Promote the adaptive reuse of existing commercial/industrial buildings as a conservation measure.

Policy 3.5 Promote flexible development standards to provide for a variety of housing types.

V. Housing Plan
City of Tracy
V-7 2023-2031 Housing Element
Program 9: Provision of Adequate Sites and Monitoring of No Net Loss RHNA Obligations
For the 6th cycle Housing Element, the City has been assigned a Regional Housing Needs Assessment (RHNA) of 8,830 units, including:
• Very Low Income: 2,994 units
• Low Income: 1,879 units
• Moderate Income: 1,175 units
• Above Moderate: 2,782 units
In addition, the City has yet to complete the rezoning of 31.7 acres to meet the shortfall for the 5th Cycle Housing Element RHNA . The 31.7 acres consists of four parcels to be rezoned from Light Industrial to HDR. This means that there is a carryover of 500 lower-income units from the previous cycle. With the 500 unit carryover lower -income units from the 5th Cycle, the City has a RHNA obligation of 9,330 units (5,373 lower-income).

RHNA Shortfall
The City is committed to providing adequate sites at appropriate densities to fully accommodate its RHNA obligations. Specifically, the City already has pending projects that account for 4, 274 units (118 very low income, 23 low income, and 4,133 above moderate income units). Projected ADUs also account for 330 units. Overall, the City has a remaining RHNA obligation of 5,610 units (2,777 very low income, 1,757 low income, and 1,076 moderate income units).

Under existing zoning, the City has realistic capacity for 1,126 lower income units and 655 moderate income units, creating a lower income shortfall of 3,747 units and a moderate-income shortfall of 520 units.

Sites Strategy
The City’s overall strategy is to accommodate the RHNA shortfall through increasing the permitted densities of existing multi -family zones, rezoning limited singl e-family and commercial areas to multi-family residential, and creating programs to facilitate increased ADU production in single - family zones , as outlined in Section IV of this Housing Element and summarized below . These strategies will allow the City to fully meet its housing needs for all income levels during the 6th Cycle Housing Element. Rezoning will meet all requirements pursuant to Government Code Section 65583.2, subdivisions (h) and (i).The following zones are proposed for increased densities:
• MDR – from 5.9-12 du/ac to 5.9-20 du/ac
• MDC – from 5.9-12 du/ac to 5.9-20 du/ac
• HDR – from 12-25 du/ac to 20-35 du/ac
• GHC – from 12-25 du/ac to 20-35 du/ac
And a new MU-1 at 20-35 du/acre will be established. The appropriate development standards will be established to ensure that maximum allowable densities can be achieved.

V. Housing Plan
City of Tracy
202-2031 Housing Element V-8
Table V-1: Opportunity Sites for Rezoning
Existing Zone Acres
Very Low
Units Low Units
Moderate
Units Total Units
LDR 4.6 84 52 - 136
MDC 5.5 98 64 - 162
MDR 40.5 703 471 - 1,174
PUD 75.4 1,029 641 575 2,245
NS 3.2 59 37 - 96
I-205 - GC 7.9 146 91 - 237
I-205 - CC 19.6 357 227 - 584
M1 21.9 59 59 534 652
M1-TH 5.0 91 57 - 148
MDR-TH 15.0 276 171 - 447
GHC 1.1 17 12 - 29
M1 (to be rezoned to new MU-1) 40.3 141 141 424 706
Total 240 3,060 2023 424 6,616

By-Right Approval
As required by law, the following types of sites are subject to by -right approval without discretionary review if the project includes 20 percent of the units as housing affordable to lower income households:
• Reuse Sites: Vacant sites that were used to meet the City’s 4th and 5th cycles RHNA for lower income units;
• Reuse Sites: Nonvacant sites that were used to meet the City’s 5 th cycle RHNA for lower income units; and
• Rezone Sites: Sites to be rezoned to meet the 6th cycle RHNA for lower income units.

Monitoring of No Net Loss
To ensure that the City complies with SB 166 (No Net Loss), the City will moni tor the consumption of residential and mixed-use acreage to ensure an adequate inventory is available to meet the City’s RHNA obligations. To ensure sufficient residential capacity is maintained to accommodate the RHNA, the City will develop and implement a formal ongoing (project -by-project) evaluation procedure pursuant to Government Code Section 65863. Should an approval of development result in a reduction in capacity below the residential capacity needed to accommodate the remaining need for lower and moderate income households, the City will identify and if necessary, rezone sufficient sites to accommodate the shortfall and ensure “no net loss” in capacity to accommodate the RHNA.

Objectives and Timeframe:
• By December 31, 2024, establish a formal procedure to monitor no-net-loss of capacity in meeting the City’s RHNA and amend the Zoning Ordinance to provide for by -right approval for projects that include 20 percent of the units for lower income households. o By-right approval is available to reuse sites (not requiring rezoning) effective December 31, 2023
o By-right approval is available to rezone sites effective upon rezoning • By December 31, 2024, complete rezoning of the sites identified in the sites inventory for rezoning. Appropriate development standards will be establ ished to ensure maximum allowable densities are achievable.

V. Housing Plan
City of Tracy
V-9 2023-2031 Housing Element
• Make the inventory of sites available to interested develop ers after adoption of the Housing Element.

Responsible Agency: Tracy Development Services Department Funding Sources: Departmental Budget
Program 10: Development of Large Sites
The sites inventory for meeting the RHNA includes 11 large sites (larger than 10 acres) that are expected to offer affordable housing opportunities for lower income households. The 11 opportunity sites consist of parcels ranging in size from 11.4 to 104.1 acres. Three of the sites (between 11.9 and

14.3 acres) are projected to develop the entire property, while the other eight, larger parcels are only projected to develop a portion of the property during the eight -year Housing Element planning period. To facilitate the development of these large sites, the City will:
• Facilitate the subdivision of large sites into smaller parcels for development. • Provide site planning tools such as clustered development, allowing flexibility for the transferring of densities within the property.
• Meet with property owners and developers to encourage the development of mixed income housing with a mix of unit sizes, types, and prices.
• Allow the development in phases within eight years of the Housing Element Planning period.

Objectives and Timeframe:
• Meet with developers/property owners at least semi -annually beginning 202 4 to facilitate development of sites.
• By the end of 2025, establish objective development standards for clustered development to facilitate large-site development.

Responsible Agency: Tracy Development Services Department Funding Sources: Departmental Budget
Program 11: Property Acquisition and Improvement
The City will continue to identify and seek partnerships with organizations and the County in order to acquire, improve, and develop affordable housing.

Objectives and Timeframe:
• Annually identify and seek partnerships with organizations and the County in order to acquire, improve, and develop affordable housing.
• Annually pursue funding available at the state and federal levels for affordable housing development.
• As funding permits, prioritize funding assistance to affordable housing projects t hat set aside units for seniors, persons with disabilities, and extremely low income households.

Responsible Agencies: Tracy Development Services Department; Economic Development Division; San Joaquin County Neighborhood Preservation Division; and local nonprofits
V. Housing Plan
City of Tracy
202-2031 Housing Element V-10
Funding Sources: CDBG funds and other funding sources, as available Program 12: Accessory Dwelling Units
The City last updated its ADU ordinance in 2018. Since that time, the law on ADUs has substantially changed. The City will update its ADU ordinance to comply with California Government Code Sections 65852.2 and 65852.22. The City will facilitate the construction of ADUs as an alternative source of affordable housing.

Timeline and Objectives:
• Facilitate construction of 330 ADUs within the planning period. • By the end of 2024, achieve the following:
o Update the Zoning Code to comply with State requirements for ADUs. o Update City website to provide a link to California Housing Finance Agency (CalHFA) ADU Grant Program.
o Develop an information sheet/brochure on ADUs, including building requirements and the permitting process, that may be given to interested property owners and kept at the Planning/ Development Services Department. This information should also be included on the City website.
o Develop and include a Fair Housing Factsheet, especially on Source of Income protection (i.e., use of public subsidies such as Housing Choice Vouchers for housing payments) in the ADU application packet.
o Develop incentives to encourage development of ADUs, including financial assistance (from state programs if available) to assist lower income homeowners with construction, pre-approved plans, and dedicated counter time for technical assistance, among others.

Responsible Agency: Tracy Development Services Department Program 13: Inclusionary Housing
Inclusionary programs are established through local ordinances that require market rate residential developers to set aside a certain portion of units in a development for income -restricted affordable housing (both rental and homeownership). In order to make affordable housing more accessible to workforce-income households, the City could consider ways to incorporate voluntary inclusionary housing incentives into the GMO to increase the supply of low, moderate, and/or workforce income units.

The City Council conducted a workshop on workforce and affordable housing on June 4, 2019, during which inclusionary housing was discussed. On March 2, 2021, the City Council approved a scope of work for an action plan that would encourage more affordable/workforce housing, for which the City subsequently received grant funding. The City Council directed City staff to evaluate inclusionary housing on June 1, 2021. The City is working through each item in the action plan toward implementation.

V. Housing Plan
City of Tracy
V-11 2023-2031 Housing Element
Objectives and Timeframe:
• Explore the potential and set the stage for an inclusionary housing program that includes an extremely low income housing component by the end of 2025.

Responsible Agency: Tracy Development Services Department Funding Sources: Departmental Budget
D. Remove Governmental Constraints
Pursuant to State law, the City is obligated to address, and where legally possible, remove governmental constraints affecting the maintenance, improvement, and development of housing.

Removing constraints on housing development can help address housing needs in the City by expediting construction, and lowering development costs.

Goal 4.0 Mitigate any potential governmental constraints to housing production and affordability.

Policy 4.1 Review and adjust as appropriate residential development standards, regulations, ordinances, and processing procedures that are determined to constrain housing development, particularly housing for lower and moderate income households and for persons with special needs.

Policy 4.2 Allow more than 150 affordable housing units as exceptions under the GMO.

Program 14: Zoning Ordinance
The City will amend the Zoning Code to address the following to facilitate the development of a variety of housing types:

Objectives and Timeframe:
• Complete Zoning Ordinance amendments to address the provision of affordable and special needs housing by the end of 2024. Specifically:
- Density Bonus: The City’s Density Bonus must be updated to reflect recent changes to State law, such as AB 1763, which made several changes to density bonus requirements for 100 percent affordable projects, and AB 2345, that further incentivizes the production of affordable housing.
- Residential Care Facilities: In accordance with the Lanterman Act, amend the Zoning Ordinance to permit residential care facilities serving six or fewer persons as a single -family residential use and permitted by right in all residential zones . In addition, consistent with City practice, amend the Zoning Ordinance to allow residential care facilities of seven or more persons in all residential zones with a Conditional Use Permit. Objective conditions for approval will be established to ensure certainty in outcomes.
- Farmworker Housing: The California Employee Housing Act further defines housing for agricultural workers consisting of 36 beds or 12 units be treated a s an agricultural use and permitted where agricultural uses are permitted. The City of Tracy permits crop and tree farming in the A, LDR, MDC, MDR, and HDR zones. The City will amend the Zoning Ordinance to address the provision of farmworker housing consistent with the Employee Housing Act.

V. Housing Plan
City of Tracy
202-2031 Housing Element V-12
- Employee Housing: The California Employee Housing Act requires that housing for six or fewer employees be treated as a regular residential use. The City will amend the Zoning Ordinance to address the provision of farmworker housing consistent with the Employee Housing Act.
- Low Barrier Navigation Center: While the City is working on the Low Barrier Navigation Center on Arbor Avenue, the Zoning Ordinance does not address this type of facility. AB 101 requires cities to allow a Low Barrier Navigation Center development by righ t in areas zoned for mixed uses and nonresidential zones permitting multifamily uses if it meets specified requirements. The City will amend the Zoning Ordinance to be in compliance with AB 101.
- Emergency Shelter Parking Standards: The Zoning Ordinance does not specify any parking requirements for emergency shelters. AB 139 specifies that local governments may impose a parking requirement, but that it shall only be an amount adequate for parking for shelter staff may not exceed the requirements for resident ial and nonresidential uses in the same zone. The City will amend the Zoning Ordinance to be in compliance with AB 139.
- Transitional and Supportive Housing: State law (AB 2634 and SB 2) requires local jurisdictions to allow for transitional and supportive housing subject to the same standards as similar residential uses within the same zone . AB 2162 requires that supportive housing that meets specific criteria to be permitted by right in zones where multi -family and mixed -use developments are permitted. Specific criteria include the size of the project and percentage set aside for target population, and specified amount of floor area for supportive services, among others. For projects locating within 0.5 mile from transit, no minimum parking requirements may be applied. The City will amend the Zoning Ordinance to be in compliance with these state laws.
- Parking Standards: Amend the City’s parking ordinance to reduce the number of off- street parking spaces required for new multi-family housing development projects. - Definition of Family: The City’s current definition of “family” is “one or more persons occupying a single dwelling unit, under no more than one written or oral rental agreement.” This definition may act as a constraint on housing fo r persons with disabilities. The City will revisit this definition of family to ensure that it poses no negative impacts for persons with disabilities.
- SB 35 and SB 330 Processing : In compliance with State law, the City will establish written procedures for processing SB 35 and SB 330 development applications.

Responsible Agency: Tracy Development Services Department Funding Sources: Departmental Budget
Program 15: Objective Design/Development Standards
As part of the City’s rez oning efforts to accommodate the RHNA, the City will establish objective design/development standards to facilitate multi-family and mixed use development in the City.

Objectives and Timeframe:
• Adopt objective design/development standards by the end of 2025.

V. Housing Plan
City of Tracy
V-13 2023-2031 Housing Element
Responsible Agency: Tracy Development Services Department Funding Sources: Departmental Budget
Program 16: Growth Management Ordinance (GMO)
The City of T racy adopted the residential Growth Management Ordinance (GMO) and the Guidelines in 1987. The GMO was amended from time to time with significant amendments occurring in 1994, 2000, 2009, 2012, 2013, 2014, and 2015. Under the GMO, builders must obtain a Residential Growth Allotment (RGA) in order t o secure a residential building permit. The 2015 amendment ensured that the RHNA could be entirely accommodated, notwithstanding the numerical limits stated in Measure A or the GMO. The maximum number of building permits issued may be the limit prescribed in the GMO (in general, 600 annual average or 750 per year max) or the number of units identified in the RHNA (by income category), whichever is higher.

Other exemptions in the GMO include the following: (1) rehabilitation, remodeling or additions to existing structures; (2) replacement of previously existing dwelling units that had been demolished; (3) construction of “model homes” until they are converted to residential units; (4) development of a project with four or fewer dwelling units; and (5) secondary residential/accessory dwelling units.

Residential projects exempt from the GMO are not counted toward the 600 annual average or the 750 annual maximum. The City will continue to monitor the GMO for any potential constraints to the development of housing on an ongoing basis and process amendments as necessary.

Objectives and Timeframe:
• Annually monitor and evaluate the Growth Management Ordinance for the impacts on the cost, supply and timing of housing including seeking input from residential developers and affordable housing stakeholders in reviewing the effects of the GMO .

The review will reflect the RHNA as a minimum and consider impacts on overall housing supply in addition to accommodating the RHN A. Information will be included and evaluated as part of the annual Growth Management Status report, published in the fourth quarter of each calendar year.

Responsible Agency: Tracy Development Services (DS) Department Funding Sources: Departmental Budget
E. Provide Equal Housing Opportunities
To meet the housing needs of all segments of the community, the Housing Plan includes a program to promote housing opportunities for all persons consistent with Federal and State fair housing laws.

The City works with the Stockton -San Joaquin Community Hou sing Resource Board, which provides several fair housing and tenant/landlord services.

Goal 5.0 Continue to promote equal housing opportunity in the City’s housing market consistent with Federal and State fair housing laws.

Policy 5.1 Comply with federal, state, and local Fair Housing and anti-discrimination laws, and affirmatively further fair housing for all, ensuring equal access to housing regardless of their special circumstances as protected by fair housing laws.

Policy 5.2 Provide fair housing services to Tracy residents, and ensure that residents are aware of their rights and responsibilities regarding fair housing.

V. Housing Plan
City of Tracy
202-2031 Housing Element V-14
Policy 5.3 Promote housing mobility by expanding housing choices and increasing housing opportunities in higher resource areas.

Policy 5.4 Protect tenants from discriminatory housing practices and displacement.

Policy 5.5 Promote the integration of affo rdable and special needs housing projects in existing neighborhoods.

Program 17: Fair Housing
The City actively furthers fair housing in the community. Specifically, the City contracts the San Joaquin Fair Housing Association to p romote fair housing and provide fair housing services for its residents.. The City participates in providing an annual direct allocation to the San Joaquin Fair Housing Association through the CDBG program.

Objectives and Timeframe:
• Continue to support the San Joaquin Fair Housing Association , or other qualified fair housing agencies, annually with CDBG funds and refer residents seeking fair housing assistance on an ongoing basis.
• Advertise the services provided by the San Joaquin Fair Housing Association (or other qualified fair housing agencies) on an ongoing basis in City buildings and other public buildings (such as public libraries, community centers, County Housing Authority offices, and post offices, etc.)
• By July 2024, begin promoting housing programs and fair housin g services via social media platforms in addition to information on City website and public counters. • Expand Spanish engagement to target outreach to the Hispanic population (especially in areas with concentration of Hispanic residents, such as Downtown).

Responsible Agency: Tracy Mobility and Housing Department and San Joaquin Fair Housing Association
Funding Sources: CDBG funds
Program 18: Place-Based Improvements
The City is pursuing a number of investments, long -range planning efforts, and improvements in various geographic areas of the City with greater need, specifically downtown Tracy and central areas of the City. These place -based improvements wi ll help improve quality of life and spur economic investment in areas of the City with greater need.

The City will continue to prioritize the Capital
Improvement Program and implement broader planning
efforts, including seeking additional funding. This wil l serve to continue to improve communities through
neighborhood improvements such as enhanced street -
scapes, multi-modal and active transportation, pedestrian safety improvements, safe routes to schools, community
facilities, park improvements, and other community
amenities.
2023 – 2024 Capital Improvements
Projects
V. Housing Plan
City of Tracy
V-15 2023-2031 Housing Element
Objectives and Timeframe:

Specific place-based efforts including the following:
• City has multiple projects in its Capital Improvements Plan identified to improve mobility, and active transportation opportunities, and park quality in the downtown and central parts of the City. The 2023 -2024 Capital Improvements Plan includes investment of $221,382,041 into 104 capital improvement projects. Many of these identified projects are in the downtown and central areas of the City, including:
o Grand Theater Repair. Exterior repair for the historic Grand Theater/Center of the Arts building in downtown Tracy.
o Holly Drive Pedestrian & Bikeway Improvements: The City is investing 1.83 million dollars to improve pedestrian and b ikeway infrastructure in the central area of the City on Holly Drive between 11th Street and Clover Road, including installing a Class 3 bike route, Class 2 bicycle lanes, sidewalk, pavement patching, slurry seal, signage, striping, and pavement markings.
o Tracy Boulevard Sidewalk. This project will close the missing sidewalk gap to the ACE Train Station parking lot immediately south of the project area. ($852,465)
o Valpico Roadway Improvements - Tracy Blvd to MacArthur Drive. This project will involve the ro adway widening of Valpico Road from Tracy Blvd to MacArthur Drive, with two lanes in each direction, complete with all necessary improvements like curb, gutter, sidewalk, median, irrigation facilities, landscaping, drainage facilities, street lighting, signage and striping. ($6,053,140) o A.R. Glover Park Improvements: Renovation of the playground, a new picnic area, renovation of the sport court, pathway lighting, ADA barrier removal, landscaping, and site furnishing replacements ($725,000). o Hoyt Park - Per Capita Improvements. The City of Tracy has the opportunity to rehabilitate existing infrastructure at Hoyt Park through the Proposition 68, Per Capita Program. ($348,835)
o Clyde Bland Park BMX Pump Track. Construction of a new 1/2 acre BMX pump track (bike park) in an existing City park. The project would create a looped asphalt track with a sequence of rollers and berms for bike riders. Associated improvements would include: earthwork, drainage, accessibility, shaded seating as well as related site furnishings, and landscaping. ($999,416) • Ten-Year Economic Development Strategic Plan: In September 2023, the City adopted a Ten-Year Economic Development Strategic Plan to help the City focus implementation efforts on strategic economic development priorities. Th e strategic plan identified and prioritized eight key areas as opportunity sites. The top priority identified is the downtown area, the second is the west side, and the third is commercial corridors in the center of the City. The downtown area and commerci al corridors are lower resource areas, compared to the rest of the City. The strategic plan helps support growth in these areas and makes recommendations to enhance economic resilience, expand market access, encourage investment, improve quality of life, and improve infrastructure in these areas.

V. Housing Plan
City of Tracy
202-2031 Housing Element V-16
• Downtown Transit -Oriented Development (TOD) Plan: The Downtown Transit - Oriented Development (TOD) Plan will identify the community’s vision and establish goals, objectives, and policies for future development in Downtown Tracy. In 2020, the City released the Downtown TOD Study which comprises the first phase of the Downtown TOD Project. The study provides recommendations for planning tools that the City can prepare and adopt to implement the concept, along with possible grant funding sources to help fund the preparation of the planning tools, catalyze development, and pay for infrastructure improvements.

The study highlights circulation improvement recommendations for 11 th Street, Central Avenue – Downtown, 3rd Street, Central Avenue, and Mt Diablo Avenue to improve the following:
o Decrease crossing distances for pedestrians,
o Improve safety for bicyclists, and
o Increase the visibility of both pedestrians and bicyclists.

Responsible Agency: Tracy Development Services Department Funding Sources: Capital Improvement Fund; General Fund Program 19: Housing Resources Education and Bilingual Materials The City will promote and advertise available housing resources to residents through a variety of media and methods. The City will continue to promote homebuyer assistance programs available through the City, County, and State, such as the Tracy Down Payme nt Assistance Loan Program, the San Joaquin County Home Rehabilitation Program, the Mortgage Credit Certificate (MCC) program and California Housing Finance Agency’s down payment assistance programs.

Objectives and Timeframe: Specific actions shall include:
• The City will provide information on housing resources to at least 200 households annually, through the following methods:
o Providing information regarding housing resources on the City website. o Pamphlets on the programs available at City Hall and other community locations such as the Senior Center and Library.
o Advertising housing resources through social media.
o Presence at a booth at community events at least once per year. o Provision of materials in Spanish and English.
• The City will continue to encoura ge improved community participation and representation in all official city business, events, and communications. The City will make translation service available as needed for meetings, including a standard note on all hearing notices and communications i n Spanish indicating that interpretation and translation services are available upon request.
• The City will review demographic changes in the City to determine if translation should be provided for new or additional languages every four years. Translation to additional languages added as determined by demographic analysis.

Responsible Agency: Tracy Development Services Department Funding Sources: General Fund
V. Housing Plan
City of Tracy
V-17 2023-2031 Housing Element
Program 20: Displacement Prevention
Providing residents with adequate information on upcoming development projects, new housing opportunities, and available programs and services will help residents deal with displacement risks.

Objectives and Timeframe:

The City will outreach to 100 households or landlords annually to provide information and resources regarding displacement prevention and income protection through the following efforts:
• By Q2 2025, coordinate with a qualified fair housing service provider to conduct a meeting/workshop to inform residents and landlords of sources of income protection and state rent control laws such as AB 1482. This may be done in coordination with the City’s fair housing service provider.
• Coordinate outreach efforts to inform landlords and tenants of recent changes to state law that prevent source of income discrimination, including allowance of housing choice vouchers (HCVs) to establish a renter’s financial eligibility. • Pursuant to SB 330, ensure a no net loss of housing units by income category when existing housing is demo lished so that, at a minimum, an equivalent number of replacement units are created at the same level of affordability. o Objective: No net loss of affordable housing units
Responsible Agency: Tracy Development Services Department Funding Sources: General Fund
F. Summary of Quantified Objectives
The following objectives are based on the assumption that funding and partnership opportunities will become available to implement the housing programs detailed above.

Table V-2: Summary of Quantified Objectives

Extremely
Low Very Low Low Moderate
Above
Moderate Total
New Construction 1,622 1,622 2,129 1,175 2,782 9,330
Rehabilitation 2 3 10 0 0 15
Conservation 118 119 0 0 0 237
Assistance
Down Payment Assistance 0 5 5 0 0 10
Housing Choice Vouchers 80 80 0 0 0 160

City of Tracy
Appendix A-1 2023-2031 Housing Element
Appendix A Public Outreach
The City of Tracy solicited community input throughout the Housing Element update planning process in a variety of ways. The main strategies to gather public participation are summarized below. Between March and June 2023, the City conducted its primary Community Outreach and Engagement initiative, incorporating a series of events such as study sessions, virtual community workshops, stakeholder interviews, and a Balancing Act exercise . During this time residents were also encouraged to participate in a survey to provide their input about housing needs. These activities are detailed below.

Outreach Activities
Community members were engaged using the following methods:
• Survey available in hard copy and online in both English and Spanish • Stakeholder focus group interviews
• Dedicated Webpage on City website
• Email list
• Community workshops
• Joint City Council and Planning Commission study session • Public hearings
Organizations Contacted and Consulted
Organizations contacted and interviewed included:
• McHenry House Tracy Family Shelter
• Souza Realty and Development
• City of Tracy Homeless Services
• City of Tracy Code Enforcement
• Housing Authority of the County of San Joaquin
• The Surland Companies
• Lennar Homes of California
• Meritage Homes
• Bright Development
• Coalition of Tracy Citizens to Assist Homeless
• San Joaquin County Homeless Initiatives
• Tracy Community Connections Center
• San Joaquin Fair Housing
• BIA of the Greater Valley
• Neighborhood Preservation Division, San Joaquin County • Tracy Family Resource Center
• Tracy Seniors Association
• Central Valley Low Income Housing Corporation
• HBR Rentals
• Crown Key Realty
• At Home Real Estate
• HERO Real Estate
The City made a comprehensive effort to reach lower - and moderate -income individuals to participate in the Housing Element Update. As noted above, the City developed a multi -lingual City of Tracy
202-2031 Housing Element Appendix A-2
outreach campaign, contacted a variety of local organizations including advocacy groups and the fair housing service provider, local service providers, and community centered organizations.

Housing Element Update Website
The City created the Housing Element update webpage on the City’s website to provide:
• Background and information on the Housing Element process; • Link to the Housing Element update survey;
• Documents related to the Housing Element, including the first public review draft; • Presentation materials and recordings of presentations • Notification to the public of future events
Figure A–1: Housing Element Update Website

Figure A–2: Survey Link on City Website

City of Tracy
Appendix A-3 2023-2031 Housing Element
Stakeholder Interviews
The City contacted over 30 individuals and groups including service providers nonprofits, and other identified stakeholders to participate in focus group interview about the housing needs and issues in Tracy. Out of the 30 individuals and groups that were contacted, 17 individuals participated in the three focus group held: April 10, 2023 at 12:00 PM; April 17, 2023 at 12:00 PM, a nd one on April 19, 2023 at 12:00 PM where the group was divided into 2 breakout rooms for discussion.

Multiple dates and times were offered for increased flexibility to accommodate various schedules; however, all of the participants requested a 12:00 PM t ime. The stakeholders who participated discussed a variety of concerns including:
• Residential Growth Allotment (RGA) as a possible constraint to growth and the development review process;
• A lack of affordable housing options and how to incentivize senior a nd affordable develop- ment in the City;
• High development and impact fees;
• Tracy does not have the capacity to support people experiencing homelessness, most of the social services and housing resources are located in Stockton; and • Need for more education and outreach to inform residents of housing law and what affordable housing is, to shift the perceived stigma.

Detailed responses are provided in the Supplementary Documents section at the end of this chapter.

Balancing Act
The City utilized the Balancing Act online interactive tool to gather input and help inform staff, the Planning Commission, and City Council on decisions regarding the Housing Element. The Balancing Act allows the public to allocate density/housing units to areas of the City that correspond to the opportunity sites identified in the sites inventory, with the goal to allocate housing units and density until the RHNA is reached. The results provide the City with the preferences of the public as well as an educational tool for the public that describes the challenges and choices related to the Housing Element opportunity sites strategy. The tool received 400 total pageviews and 14 completed housing element simulations ( https://tracy_housing.abalancingact.com/tracy-heu). The following areas were the top three areas identified by the participants where housin g should be allocated and increased.

1. Valpico Rd sites (Areas 8A, 8B, and 8C)

2. The Bowtie sites (Areas 7A, 7B, 7C, and 7D)

3. I-205 Corridor sites (Areas 1A and 1B)

City of Tracy
202-2031 Housing Element Appendix A-4
Figure A–3: Balancing Act Page—English

City of Tracy
Appendix A-5 2023-2031 Housing Element
Figure A–4: Balancing Act Page—Spanish

Public Workshops
Two City-staff led public workshops were held to review Housing Element issues and concerns. The workshops were conducted at the Tracy Transit Center in an open house format where the public could drop in at any time during the two -hour time period. The Balancing Act was available as an interactive element during the workshops. The workshops were held on the following dates:
• Tuesday, May 23, 2023, 6:30 p.m. – 8:30 p.m.
• Saturday, May 27, 2023, 9:30 a.m. – 11:30 a.m.
• Saturday, June 3, 2023, 11:00 a.m. – 1:00 p.m.

City of Tracy
202-2031 Housing Element Appendix A-6
Study Session
The City held a special joint City Council and Planning Commission study session on March 22, 2023. The session included a detailed presentation of the requirements of the 6 th cycle Housing Element Update, the RHNA requirements and the preliminary opportunity site selection strategy and results. This included identification of the need to increase densities through zoning amendments and rezones to meet the RHNA. The presentation was followed by a robust question and answer session, including comments and questions from members of the public, Planning Commission and City Council, and city staff. The session served to establish a foundation of understanding of the requirements and challenges facing the City of Tracy. It was recorded and posted on the City housing element update webpage for future reference and to increase knowledge and understanding throughout the update period.

Public Hearings
TBD.

Housing Element Survey
Respondents were presented with specific questions based on tenure , alongside general inquiries about housing needs that were applicable to all participants.

The survey received 138 respondents.1 Respondent characteristics are as follows:
• 59 percent were homeowners and 17 percent were owners; • 58 percent have lived in Tracy over 10 years;
• 19 percent were seniors (over 65 years old); and
• 16 percent were experiencing housing insecurity in Tracy (i.e. tr ouble paying rent, poor housing quality)
When asked about their improvement plans within the next five years, interior remodels, exterior remodels, and solar panels were the top three improvement types reported. Ho meowners also expressed interest in consid ering Accessory Dwelling Units (ADUs) for accommodating their parents, relatives, and children, as well as for generating additional income. However, homeowners identified the main obstacles for ADU construction as costs and challenges related to technical design, permitting, and construction processes.

According to renter respondents, their housing options were primarily limited by monthly costs.

Despite this limitation, a significant majority (87 percent) of renters reported that their rental units were either well maintained or very well maintained.

All respondents were asked to whether they “Strongly Agree,” “Somewhat Agree,” “Neither Agree nor Disagree,” “Somewhat Disagree,” or “Strongly Disagree” with statements. • Over 50 percent of respondents strongl y agreed that it is difficult to find affordable rental housing in Tracy;
• 60 percent strongly agreed that it is difficult to find affordable homes for purchase in the City;
• 45 percent strongly or somewhat agreed that conditions of neighborhoods (streetligh ts, sidewalks, parks, etc.) were the foremost challenge in the community; and

1 The Spanish survey only received one response. Responses from the Spanish response were incorporated into the English responses.

City of Tracy
Appendix A-7 2023-2031 Housing Element
• 39 percent strongly or somewhat agreed that the condition of existing housing and property maintenance is the foremost challenge facing the community.

Respondents were also aske d to rank the groups by order of need of housing. A ccording to their rankings, seniors, persons with disabilities, and veterans were deemed to have the highest need (lowest score). Moreover, the respondents provided written feedback expressing that single -person households, single-parent households, single-income households, and low-income households also face significant housing needs.

2.1 4.1

3.3 3.5

4.0 3.9

6.5 0.0

1.0 2.0

3.0 4.0

5.0 6.0

7.0 Seniors Large Families Persons with
Disabilties
Young Adults Persons
Experiencing
Homelessness
Veterans Others
Weighted Score
City of Tracy
202-2031 Housing Element Appendix A-8
Supplementary Documents

City of Tracy
Appendix A-9 2023-2031 Housing Element

City of Tracy
202-2031 Housing Element Appendix A-10

City of Tracy
Appendix A-11 2023-2031 Housing Element

City of Tracy
202-2031 Housing Element Appendix A-12

City of Tracy
Appendix A-13 2023-2031 Housing Element

City of Tracy
202-2031 Housing Element Appendix A-14

City of Tracy
Appendix A-15 2023-2031 Housing Element

City of Tracy
202-2031 Housing Element Appendix A-16

City of Tracy
Appendix A-17 2023-2031 Housing Element

City of Tracy
202-2031 Housing Element Appendix A-18

City of Tracy
Appendix B-1 2023-2031 Housing Element
Appendix B Review of Past Accomplishments
This chapter contains an analysis of the effectiveness of the 201 5-2023 Housing Element, appropriateness of goals and the progress in implementing programs for the previous planning period as required by California Government Code Section 65588(a). The chapter also includes an evaluation of the appropriateness of continuing the 2015-2023 Housing Element goals and programs.

Findings from this analysis and evaluation have guided development of the Housing Action Plan described in Section 6: Housing Plan.

1. Program Evaluation
The 201 5-2023 Housing Element contained five primary goa ls and 12 implementing programs consistent with California housing element law and priorities expressed by the Tracy community, including input received from the City Council, Planning Commission, and City staff.

The five primary housing goals were:
• Goal 1 : Conserve and improve the condition of the existing housing stock, especially affordable housing.
• Goal 2: Assist in the provision of housing that meets the needs of all economic segments of the community.
• Goal 3: Provide suitable sites for housing develop ment which can accommodate a range of housing by type, size, location, price, and tenure.
• Goal 4: Mitigate any potential governmental constraints to housing production and affordability.
• Goal 5: Continue to promote equal housing opportunity in the City’s h ousing market consistent with Federal and State fair housing laws.

Table B -1 summarizes the programs contained in the previous Housing Element along p rogram objectives, accomplishments, and the appropriateness of continuing with the previous programs and policies for this Housing Element Update. Table B -2 shows the quanti fied objectives and accomplishments during the 5th Cycle.

2. Effectiveness in Addressing Special Needs
The City was able to provide the following assistance to special needs households during the 2015- 2023 Housing Element planning period:
• In 2019, the City allocated $112,000 in Home Investment Partnership Program funds to the San Joaquin County Housing Auth ority and Stone Pine Meadows, a 72 -unit apartment complex for lower-income households.
• In FY 2021, the City allocated $163,461 in Home Investment Partnership Program funds to the San Joaquin County Housing Authority to support the demolition and reconstruc tion of a 60-unit low-income apartment project.
• In 2020, City Council allocated $4 million to the Housing Authority of San Joaquin County for the rehabilitation of existing low-income housing units. • The City facilitated the rehabilitation of the McHenry House - Family Homeless Shelter and Emerson House (transitional housing facility for men) through the CDBG program.

City of Tracy
2023-2031 Housing Element Appendix B-2
• The City continues to participate in the Housing Choice Voucher Program operated by the San Joaquin Housing Authority funded by HUD. About 162 Tracy households are currently receiving housing choice voucher assistance.

For the 2023-2031 Housing Element planning period, the City will increase its efforts in facilitating affordable housing opportunities for lower and moderate income households, including housing for special needs . S pecifically, rezoning for multi -family and mixed use residential development, incentives for ADUs and affordable housing development, and pursuit of inclusionary housing, would expand opportunities for special needs households.

City of Tracy
Appendix B-3 2023-2031 Housing Element
Table B-1: Program Summary (2015-2023)
Program Description Objectives and Timeframe Accomplishments Appropriateness Goal 1.0: Conserve and improve the condition of the existing housing stock, especially affordable housing. 1 Downtown Rehabilitation Home Loan
Program
• Annually consult the HCD and HUD
websites to identify and pursue potential
funding opportunities that may be available
and appropriate to reinstate a housing
rehabilitation program.
• Refer property owners in need of
rehabilitation assistance to the San Joaquin
County Neighborhood Preservation
Division who administers the County's
HUD Grant programs, which include
housing rehabilitation programs (currently
suspended).
• Assist 20 lower- and moderate-income
households with the rehabilitation of their
homes during the planning period.

The County's HUD Grant was reinstated
in March 2022 to provide housing
rehabilitation assistance through the
Home Improvement Partnership Grant
Program (HOME).

In 2017 the City began the process of
drafting a boarded buildings ordinance in
an effort to lead to rehabilitation of
homes.

In 2019, the City allocated $112,000 in
Home Investment Partnership Program
funds to the San Joaquin County
Housing Authority and Stone Pine
Meadows, a 72-unit apartment complex
for lower-income households.

In FY 2019-2020, the County did not
complete any housing rehabilitations,
however rehabilitation of the McHenry
House - Family Homeless Shelter and
Emerson House (transitional housing
facility for men) were made through the
CDBG program.

In FY 2020-2021, the County funded
$50,089 for four housing rehabilitation
projects.

In FY 2021, the City allocated $163,461
in Home Investment Partnership
Program funds to the San Joaquin
County Housing Authority to support the
demolition and reconstruction of a 60-
unit low-income apartment project.

The City will work to
identify and pursue
additional funding sources to
reinstate this program, if
feasible. A modified version
of this program will be
included in the 2023-2031
Housing Element.

City of Tracy
2023-2031 Housing Element Appendix B-4
Program Description Objectives and Timeframe Accomplishments Appropriateness 2 Code Enforcement • Continue to investigate possible code violations.
• Continue to disseminate information on
housing rehabilitation assistance available
to address code violations and other
housing issues.

The City’s Code Enforcement Division
continues to administer a fair and
unbiased code enforcement program to
correct violations of property conditions
and land use requirements. The City
continues to provide information about
its Code Enforcement Division on its
website, including directions for residents
on how to both resolve and report
potential violations.

This program continues to be
appropriate and will be
included in the 2023-2031
Housing Element.
3 Graffiti Removal Program • Continue to operate the Graffiti Hot Line. The City’s Department of Operations and Utilities continues to operate a Graffiti
Removal Program and Graffiti Hot Line.

The City continues to provide
information about this program on its
website, including direction for residents
on how to anonymously report vandalism
and steps to prevent its occurrence.

Graffiti complaints and concerns can be
reported by phoning the Code
Enforcement Division at (209) 831-6410.

This program continues to be
appropriate and will be
included in the 2023-2031
Housing Element.
4 Affordable Housing Monitoring • Monitor status of affordable units annually by maintaining contact with property
owners and HUD Multi-Family Housing
division.
• Solicit interest and participation of
nonprofit housing developers to acquire
and preserve housing to be maintained as
affordable units.

No affordable housing developments in
the City were considered at-risk of losing
their affordability status during the 2015-
2023 Housing Element planning period.

In 2020, City Council allocated $4
million to the Housing Authority of San
Joaquin County for the rehabilitation of
existing low-income housing units.

This program continues to be
appropriate and will be
included in the 2023-2031
Housing Element.

Goal 2.0: Assist in the provision of housing that meets the needs of all economic segments of the community. 5 Downpayment Assistance Program • Continue to provide down payment assistance to qualified lower income
households (up to 80 percent AMI).
• Disseminate information to prospective
first-time homebuyers on the DAP Loan
Program.

This program is still available, but due to
high home prices in Tracy, qualifying for
a home purchase and meeting low-
income requirements is challenging . As a
result, the City has not processed a
The City will work to identify
and pursue additional funding
sources to reinstate this
program, if feasible. A
modified version of this
program will be included in
City of Tracy
Appendix B-5 2023-2031 Housing Element
Program Description Objectives and Timeframe Accomplishments Appropriateness • Assist three households (an estimated one
very low income and two low income
households) annually.

Downpayment Assistant Loan since
2011.
the 2023-2031 Housing
Element.
6 Homebuyer and Financial Literacy
Training
• Continue to require a “Certificate of
Completion” from a HUD-approved
homebuyer class in order to participate in
the City’s DAP Loan Program.
• Partner with qualified local non-profit
agencies to offer homebuyer education
classes and publicize the availability of
these classes to residents.

This program is overseen by the San
Joaquin County Neighborhood
Preservation Division, Visionary Home
Builders, Neighbor Works, and NID-
HCA (Housing Counsel Agency), and is
dependent on funding from HUD.

This program continues to be
appropriate and will be
included in the 2023-2031
Housing Element
7 Affordable Housing Development • Continue to prioritize the allocation of residential growth allotments (RGAs) to
affordable housing projects (particularly for
those projects that set aside units for
extremely low income households and
persons with special needs, including those
with developmental disabilities, and
farmworkers).
• Proactively encourage and facilitate, on an
ongoing basis, the development of
affordable housing by non-profit
organizations for lower income
households, particularly those with special
needs including large households, seniors,
extremely low-income (ELI) households,
and households with persons who have
disabilities or developmental disabilities,
and farmworkers.
• Continue to provide density bonuses and
other incentives on an ongoing basis to
developers who provide affordable units,
such as technical assistance related to City
policies and regulations, and pre-
application consultation with staff.

The Growth Management Ordinance
establishes exceptions to annual
residential permit limits for affordable
housing projects, and the Density Bonus
Ordinance establishes the incentives for
affordable housing projects.

On March 2, 2021, the City Council
approved a scope of work with
PlaceWorks, Inc. to work with the City
on an action plan to address
affordable/workforce housing. One
consideration in the plan would allow
more RGAs to be allocated to affordable
housing projects but requires a change to
Measure A with voter approval to
implement: Provide additional market-
rate Residential Growth Allotments
(RGAs) for projects that include a
specified percentage of affordable units.

Other action items are related to
increased density allowances, permit
higher density houses by right in certain
commercial zones, update City
Regulations regarding Accessory
Dwelling Units, rezone two sites from
industrial to residential, create off-the-
shelf Accessory Dwelling Unit plans, and
other direct developer support efforts for

City of Tracy
2023-2031 Housing Element Appendix B-6
Program Description Objectives and Timeframe Accomplishments Appropriateness affordable housing projects. The City
secured grant funding in 2020 to begin
work on these efforts.
8 Housing Choice Voucher Program
(Section 8)
• Disseminate information to the public
regarding the HCV program and promote
participation by rental property owners.
• Annually contact the HACSJ to obtain
information on the status of the HCV
program and other available resources.
• Continue to support HACSJ’s petition for
increased funding from HUD.
• Continue to work with HACSJ to provide
HCVs to Tracy residents.
• Continue to work with the HACSJ to assist
households through the Family Self-
Sufficiency Program.

The City continues to participate in the
Housing Choice Voucher Program
operated by the San Joaquin Housing
Authority funded by HUD . About 15
Tracy households are currently receiving
housing choice voucher assistance.

This program is completed,
and a modified version will be
included in the 2023-2031
Housing Element.
9 Sustainability Program • Continue to develop the Sustainability Action Plan.

The City adopted the Sustainability
Action Plan in February 2011. This
document is frequently used in
development project review and CEQA
review. The entire Plan is available on the
City’s website.

This program is completed
and a modified version will be
included in the 2023-2031
Housing Element.
10 Affordability by Design • Continue to implement the recently adopted Zoning Amendments that
incorporate affordability by design
concepts described in the General Plan.
• Encourage the development of a variety of
housing types that provide affordable
housing options for persons with special
needs, such as micro-units, senior units,
second units, and small-lot developments.
• Promote Affordability by Design principles
by placing information on City website and
at public counters by 2016.

Revised development regulations
influenced by Affordability by Design
principles were incorporated into the
Zoning Ordinance over the last number
of years. For example:
• Any use, including multi-family
residential, may request up to a 20%
reduction in required parking based
on a study or survey that illustrates
that required number of parking
spaces pursuant the City's Off-Street
Parking Ordinance is not needed for
the use (Ordinance 1181).
• Relaxed setbacks in the High Density
Residential Zoning District
(Ordinance 1179), permitted a broader
This program continues to be
appropriate, and a modified
version will be included in the
2023-2031 Housing Element.

City of Tracy
Appendix B-7 2023-2031 Housing Element
Program Description Objectives and Timeframe Accomplishments Appropriateness degree of housing types in the Central
Business District Zone consistent with
General Plan densities (Ordinance
1282),
Implementing the State's allowances for
ADUs (Government Code Section
65852.150) which were updated effective
January 1, 2020. This has provided for
greater flexibility for the allowance and
maximum usage of residential sites.

On March 2, 2021, the City Council
identified an action plan to address
affordable/workforce housing, among
which include changes to density and
development regulations. Work began on
developing these action items in 2021.

Goal 3.0: Provide suitable sites for housing development which can accommodate a range of housing by type, size, location, price, and tenure. 11 Provision of Adequate Sites • Complete rezoning of the four parcels on Valpico Road within two years of the
adoption of the 2015-2023 Housing
Element.
• Monitor and update the sites inventory
annually to assess its adequacy for meeting
the RHNA, particularly for sites capable of
facilitating the development of lower
income housing.
• Make the inventory of vacant sites
available to interested developers after
adoption of the Housing Element.
• Should properties identified in the
residential sites inventory become
unavailable during the planning period,
resulting in a shortfall in sites for meeting
the RHNA, the City will identify
additional sites per Government Code §
65863.

The parcels on Valpico Road have not yet
been rezoned. The City has had
numerous meetings with developers
about the appropriate zoning of this site,
and these conversations are still going.

The City anticipates a formal
development (rezoning to High Density
Residential and Tentative Map)
application for residential use of the
property by November 2023. While the
residential use will be consistent with the
High Density Residential density, the
project is not anticipated to be deed-
restricted for below-market rate housing.

Therefore, this item will be removed from
the list of Objectives.

The available sites inventory is still
accurate and is publicly available on the
City's website on page 81 of the Housing
Element. Tracy's RHNA obligations are
This program continues to be
appropriate and will be
included in the 2023-2031
Housing Element.

City of Tracy
2023-2031 Housing Element Appendix B-8
Program Description Objectives and Timeframe Accomplishments Appropriateness being assessed annually. There is
currently no shortage on vacant sites.
12 Property Acquisition and Improvement • Continue to identify and seek partnerships with organizations and the County in order
to acquire, improve, and develop
affordable housing
• Continue to assist in site acquisition for
affordable housing. As funding permits,
prioritize funding assistance to affordable
housing projects that set aside units for
seniors, persons with disabilities, and
extremely low income households.

The dissolution of the Tracy Community
Development Agency in 2012 eliminated
the Redevelopment Project area and
severely compromised the City’s ability to
pursue and purchase properties for
residential development. However, the
City will continue to identify and seek
partnerships with organizations to
acquire, improve, and develop affordable
housing.

This program continues to be
appropriate, and a modified
version will be included in the
2023-2031 Housing Element.
13 Inclusionary Housing • Explore the potential and set the stage for a voluntary inclusionary housing program
that includes an extremely low income
housing component by 2017.
• Monitor the City’s affordability conditions
on an annual basis and identify an
inclusionary housing trigger, if necessary.

Projects that voluntarily provide
inclusionary housing are granted priority
for Residential Growth Allotments that
are necessary to obtain a building permit
for residential development as established
in the Growth Management Ordinance
Guidelines (Resolution 2014-145).

The City Council conducted a workshop
in June 2021 and directed City staff to
add inclusionary housing to the
workforce/affordable housing action plan
list. The City is working through each
item in the action plan toward
implementation.

This program continues to be
appropriate, and a modified
version will be included in the
2023-2031 Housing Element.
14 Resale of Foreclosed Properties • Continue to collaborate with the County, on an ongoing basis, to identify and pursue
available resources for the
acquisition/rehabilitation of foreclosed
and/or substandard housing as affordable
housing.

The City focused its efforts on the
maintenance of foreclosed properties to
prevent vandalism. The City’s Code
Enforcement Division received calls and
resolved issues related to graffiti and
weed abatement on foreclosed properties.

This is on-going in collaboration with the
San Joaquin County Neighborhood
Preservation Division.

The NSP funding for this
program has been exhausted
but the City will work to
identify additional funding
sources to continue this
program. A modified version
will be included in the 2023-
2031 Housing Element.

City of Tracy
Appendix B-9 2023-2031 Housing Element
Program Description Objectives and Timeframe Accomplishments Appropriateness Goal 4.0: Mitigate any potential governmental constraints to housing production and affordability. 15 Zoning Ordinance • Complete Zoning Ordinance amendments to address the provision of density
bonuses, residential care facilities,
farmworker housing, and employee
housing by the end of 2016. Specifically:
• Density Bonus: Update Density Bonus
Ordinance to reflect the requirements of
AB 2222 (effective January 2015),
including extending the affordability
control for the affordable units to 55
years, and requiring the replacement of
existing affordable units demolished or
removed in order to qualify for a
density bonus, incentive, or concession.
• Residential Care Facilities: to In
accordance with the Lanterman Act,
amend the Zoning Ordinance to permit
residential care facilities serving six or
fewer persons as a single-family
residential use. In addition, consistent
with City practice, amend the Zoning
Ordinance to allow residential care
facilities of seven or more persons in all
residential zones with a Conditional
Use Permit.

Zoning code amendments related to
Density Bonus, Residential care facilities,
Farmworker housing, and employee
housing were not completed during the
planning period. However, on
February 4, 2020, the City Council
identified an action plan to address
affordable/workforce housing, among
which include changes to density and
development regulations. Work began on
developing these action items in 2020.

The City is working through each item in
the action plan toward implementation.

This program continues and
a modified version will be
included in the 2023-2031
Housing Element.
• Employee Housing: The California
Employee Housing Act requires that
housing for six or fewer employees be
treated as a regular residential use. The
City will amend the Zoning Ordinance to
address the provision of farmworker
housing consistent with the Employee
Housing Act.

City of Tracy
2023-2031 Housing Element Appendix B-10
Program Description Objectives and Timeframe Accomplishments Appropriateness • Reevaluate recent amendments to the
definition of “family” and “supportive
housing” in the Zoning Ordinance and
amend, as necessary, to comply with State
laws.
• Evaluate Zoning Ordinance for any
potential constraints to the development of
housing on an ongoing basis.

16 Growth Management Ordinance
(GMO)
• Annually monitor and evaluate the Growth
Management Ordinance for the impacts on
the cost, supply and timing of housing
including seeking input from residential
developers and affordable housing
stakeholders in reviewing the effects of the
GMO. The review will reflect the RHNA
as a minimum and consider impacts on
overall housing supply in addition to
accommodating the RHNA. Information
will be included and evaluated as part of
the annual Growth Management Status
report, published in the fourth quarter of
each calendar year.

The Growth Management Ordinance was
amended in November 2015 to permit
building permits to be issued beyond the
maximum number of Residential Growth
Allotments issued in accordance with the
Ordinance in an effort to allow housing
to be built in accordance with the City's
assigned RHNA (Ordinance 1201). The
growth management status and pipeline
report are on the City's website.

This program continues to be
appropriate and will be
included in the 2023-2031
Housing Element.

Goal 5.0: Continue to promote equal housing opportunity in the City’s housing market consistent with Federal and State fair housing laws. 17 Fair Housing • Continue to support the San Joaquin Fair Housing Association, or other qualified fair
housing agencies, annually with CDBG
funds and refer residents seeking fair
housing assistance on an ongoing basis.
• Advertise the services provided by the San
Joaquin Fair Housing Association (or other
qualified fair housing agencies) on an
ongoing basis in City buildings and other
public buildings (such as public libraries,
community centers, County Housing
Authority offices, and post offices, etc.).

The City participates in providing an
annual direct allocation to the San
Joaquin Fair Housing Association
through the CDBG program. Between
2016 and 2021, $35,379 was allocated.

Information on the Fair Housing services
are available at City Hall and on the
City's website under the Economic
Development Division homepage.

This program continues to be
appropriate and will be
included in the 2023-2031
Housing Element.

City of Tracy
Appendix 11 2023-2031 Housing Element
Table B-2 : Housing Element Quantified Objectives and Accomplishments

Extremely
Low Very Low Low Moderate
Above
Moderate Total
New Construction
(RHNA) (Objectives)
453 454 632 813 2,535 4,888
New Construction
(Actual - Permitted)
0 0 0 0 784 784
Rehabilitation (Objectives)
Downtown Rehabilitation Loan 1 1 2 1 0 5
Downtown Rehabilitation Grant 5 5 10 5 0 25
NSP 0 2 2 5 0 9
Rehabilitation (Actual)
Downtown Rehabilitation Loan 0 0 0 2 0 2
Downtown Rehabilitation Grant 0 0 0 11 0 11
NSP 0 0 0 14 0 14
Preservation (Objectives) No units at risk during planning period Assistance (Objectives)
Downpayment Assistance 0 20 25 25 0 60
Section 8 83 83 0 0 0 166
Family Self-Sufficiency 8 9 0 0 0 17
Assistance (Actual)
Downpayment Assistance 0 4 12 7 0 23
County GAP-DPA Program 0 0 0 8 0 8
Section 8 75 75 0 0 0 150
Family Self-Sufficiency Information Not Available

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-1 2023-2031 Housing Element
Appendix C Affirmatively Furthering Fair Housing
A. Introduction, Outreach, and Assessment

1. Introduction
Fair housing prohibits housing discrimination based upon race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information.

Assembly Bill (AB) 686 requires a jurisdiction’s Housing Element to provide an analysis of barriers that restrict access to opportunity and a commitment to specific meaningful actions and how the identified Regional Housing Needs A llocation (RHNA) sites affirmatively further fair housing. AB 686 requires jurisdictions to identify meaningful goals to address the impacts of systemic issues such as residential segregation, housing cost burden, and unequal educational or employment opportunities to the extent these issues create and/or perpetuate discrimination against protected segments of the population. In addition, AB 686:
• Requires jurisdictions and public housing authorities to administer their programs and activities related to housing and community development in a way that affirmatively furthers fair housing;
• Prohibits the state, cities, counties, and public housing authorities from taking ac tions materially inconsistent with their Affirmatively Furthering Fair Housing (AFFH) obligation; • Adds an AFFH analysis to the Housing Element (an existing planning process that California cities and counties must complete) for plans that are due beginning in 2021; and • Includes in the Housing Element’s AFFH analysis a required examination of issues such as segregation and resident displacement, as well as the required identification of fair housing goals.

The bill added an assessment of fair housing to the Housing Element which includes the following components:
• A summary of fair housing issues and assessment of the City’s fair housing enforcement and outreach capacity;
• An analysis of segregation patterns and disparities in access to opportunities, • An assessment of contributing factors, and
• An identification of fair housing goals and actions.

2. Public Outreach
The City of Tracy solicited community input throughout the Housing Element update planning process in a variety of ways. The main strategies to gather public participation are summarized below.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-2
Outreach Activities
Community members were engaged using the following methods:
• Survey available in hard copy and online in both English and Spanish • Stakeholder focus group interviews
• Dedicated project website (https://tracyheu2023.weebly.com/) • Community workshops
• Joint City Council and Planning Commission study session • Public hearings
Organizations Contacted and Consulted
Organizations contacted and interviewed included:
• McHenry House Tracy Family Shelter
• Souza Realty and Development
• City of Tracy Homeless Services
• City of Tracy Code Enforcement
• Housing Authority of the County of San Joaquin
• The Surland Companies
• Lennar Homes of California
• Meritage Homes
• Bright Development
• Coalition of Tracy Citizens to Assist Homeless
• San Joaquin County Homeless Initiatives
• Tracy Community Connections Center
• San Joaquin Fair Housing
• BIA of the Greater Valley
• Neighborhood Preservation Division, San Joaquin County • Tracy Family Resource Center
• Tracy Seniors Association
• Central Valley Low Income Housing Corporation
• HBR Rentals
• Crown Key Realty
• At Home Real Estate
• HERO Real Estate
The City made a comprehensive effort to reach lower - and moderate -income individuals to participate in the Housing Element Update. As noted above, the City developed a bilingual outreach campaign, contacted a variety of local organizations including advocacy groups and the fair housing service provider, local service providers, and community centered organizations.

Housing Element Update Website
The City created the Housing Element update webpage on the City’s website to provide:
• Background and information on the Housing Element process; • Link to the Housing Element update survey;
• Documents related to the Housing Element, including the first public review draft; • Presentation materials and recordings of presentations • Notification to the public of future events
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-3 2023-2031 Housing Element
Stakeholder Interviews
The City contacted over 30 individuals and groups including service providers nonprofits, and other identified stakeholders to participate in focus group interview about the housing needs and issues in Tracy. Out of the 30 individuals and groups that were contacted, 17 individuals participated in the three focus group held: April 10, 2023 at 12:00 p.m.; April 17 , 2023 at 12:00 p.m., and one on April 19, 2023 at 12:00 p.m. where the group was divided into 2 breakout rooms for discussion .

Multiple dates and times were offered for increased flexibility to accommodate various schedules; however, all of the participants requested a 12:00 p.m. time. The stakeholders who participated discussed a variety of concerns including:
• Residential Growth Allotment (RGA) as a possible constraint to growth and the development review process;
• A lack of affordable housing options and how to incentivize senior and affordable develop - ment in the City;
• High development and impact fees;
• Tracy does not have the capacity to support people experiencing homelessness, most of the social services and housing resources are located in Stockton; and • Need for more education and outreach to inform residents of housing law and what affordable housing is, to shift the perceived stigma.

Balancing Act
The City utilized the Balancing Act online interactive tool to gather input and help inform staff, the Planning Commission, and City Council on decisions regarding the Housing Element. The Balancing Act allows the public to allocate density/housing units t o areas of the City that correspond to the opportunity sites identified in the sites inventory, with the goal to allocate housing units and density until the RHNA is reached. The results provide the City with the preferences of the public as well as an educational tool for the public that describes the challenges and choices related to the Housing Element opportunity sites strategy. The tool received 400 total pageviews and 14 completed housing element simulations ( https://tracy_housing.abalancingact.com/tracy-heu). The following areas were the top three areas identified by the participants where housing should be allocated and increased.

1. Valpico Rd sites (Areas 8A, 8B, and 8C)

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-4

2. The Bowtie sites (Areas 7A, 7B, 7C, and 7D)

3. I-205 Corridor sites (Areas 1A and 1B)

Public Workshops
Two City-staff led public workshops were held to review Housing Element issues and concerns. The workshops were conducted at the Tracy Transit Center in an open house format where the public could drop in at any time during the 2-hour time period. The Balancing Act was available as an interactive element during the workshops. The workshops were held on the following dates:
• Tuesday, May 23, 2023, 6:30 p.m. – 8:30 p.m.
• Saturday, May 27, 2023, 9:30 a.m. – 11:30 a.m.

Study Session
The City held a special joint City Council and Planning Commission study session on March 22, 2023. The session included a detailed presentation of the requirements of the 6 th cycle Housing Element Update, the RHNA requirements and the preliminary opportunity site selection strategy and results. This included identification of the need to increase densities through zoning amendments and rezones to meet the RHNA. The presentation was followed by a robust question and answer session, including comments and questions from members of the public, Planning Commission and City Council, and city staff. The session served to establish a foundation of understanding of the requirements and challenges facing the City of Tracy. It was recorded and posted on the City housing element update webpage for future reference and to increase knowledge and understanding throughout the update period.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-5 2023-2031 Housing Element
Housing Element Survey
Another component of the outreach effort was the Housing Element survey, posted on the City’s website from March 2023 through September 2023, and promoted through several public channels to provide the furthest reach. The survey was available in both Engli sh and Spanish. As of August 2023, a total of 138 completed surveys were received. Respondent characteristics represented the following.
• 59 percent were homeowners and 17 percent were owners; • 58 percent have lived in Tracy over 10 years;
• 19 percent were seniors (over 65 years old); and
• 16 percent were experiencing housing insecurity in Tracy (i.e. , trouble paying rent, poor housing quality)
Homeowners expressed interest in considering ADUs for accommodating their parents, relatives, and children, as well as for generating additional income. However, homeowners identified the main obstacles for ADU construction as costs and challenges related to technical design, permitting, and construction processes.

Additionally, the following results highlight the perceived difficulties in finding affordable housing as well as challenges related to neighborhood conditions and existing housing conditions in Tracy. • Over 50 percent of respondents strongly agreed that it is difficult to find affordable rental housing in Tracy;
• 60 percent strongly agreed that it is difficult to find affordable homes for purchase in the City;
• 45 percent strongly or somewhat agreed that conditions of neighborhoods (streetlights, sidewalks, parks, etc.) were the foremost challenge in the community; and • 39 percent strongly or somewhat agreed that the condition of existing housing and property maintenance is the foremost challenge facing the community.

3. Findings
Most focus group attendees and survey respondents support the provision of more ho using assistance, financial or policy based, for the low-income population in finding housing. In summary, the community engagement and input yielded the following themes and feedback:
• Education and Outreach: Participants expressed the challenges and barriers for community engagement and education as it related to affordable housing, available housing services and programs, and housing policy and law. Program 6 provides outreach and education on homebuyer resources. Program 17 includes an action to promote housing programs and services via social media platforms.
• Prioritizing Housing for a Variety of Incomes: Participants addressed the need for prioritizing development for a mix of income levels as well as a variety of housing types.

Program 7 includes actions to expand housing choices in the community (such as tiny home, duplex, triplex, fourplex, and medium density multi-family housing). • Residential Growth Allotment (RGA): Participants expressed the challenges and b arriers for developing housing projects as a result of the RGA provision. Program 16 includes actions Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-6
to improve the effectiveness of the City’s GMO to accommodate the RHNA and to monitor the pace of development.

B. City Overview
Much of the fair housing analysis is based upon census data provided at the census tract level. Tracy has a total of fifteen census tracts. Figure C–1 displays the census tracts in the City and the RHNA sites located in each of those census tracts ; however, several of the census tracts are not solely in Tracy and have substantial portions in neighboring jurisdictions. As a result, demographic information for these census tracts reflects neighboring communities, as well as Tracy. The western and southern tracts are largely agricultural land uses and include a couple of the larger residential specific plan areas (Tracy Hills and Ellis Specific Plans) in the City. A majority of the northern and eastern tracts include a mix of industrial and agricultur al land uses . Tracy is surrounded by unincorporated San Joaquin County, mostly consisting of agriculture land uses.

The AFFH section also considers the effect that the selected RHNA sites may have on fair housing.

RHNA sites are distributed throughout the City, with many pending project sites in the western and southern areas of the City. The sites inventory includes a mix of vacant and non-vacant sites, selected for their access to resources, suitability for multifamily housing, and proximity to upcoming plans for community revitalization, including the City’s Ten Year Economic Development Strategic Plan.

Additionally, non-vacant sites were selected based on their likelihood to develop during the 6th cycle and the extent to which the existing use may preclude development.

As noted in Table C-1, Tracy is primarily in the high or highest resource categories, with a cluster of smaller, central tracts of low or moderate resource. These are relative rankings based on composites of the environmental, economic, and education scores. The tract in the south is considered a Racially Concentrated Area of Affluence (RCAA).

Of the 170 RHNA sites (assessor parcels) , including pending projects and opportunity sites, 8.3 percent of units are in the Low Resource tracts, 6.9 percent of units are in Moderate Resource tracts,

32.6 percent are in High Resource tracts, and 52.2 percent of units are in Highest Resource tracts.

Eleven of the 15 census tracts that intersect Tracy have the majority of their area located inside City limits. 32.3 percent of the units are in the tract with the second highest median income.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-7 2023-2031 Housing Element
Figure C–1: RHNA Opportunity Sites by Tract

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-8
Table C-1: Comparison of Fair Housing with Respect to Location Census
Tract Low Mod
Above
Mod
RHNA
Units Total HH Total Pop
TCAC Composite
Category
Median
Income
% with
Disability
% of
Children
in FHH
CES
Percentile
%
Non-
White
R/ECAP
Present
Census Tracts Mostly Inside of Tracy

52.08 0 0 0 0% 0 2,095 1,693 Highest Resource $92,425 10.2% 3.3% 30.1 63.7% No

52.09 459 604 246 11.0% 1,309 725 2,547 Highest Resource $95,478 5.6% 10.9% 28.3 61.3% No

52.10 0 0 0 0% 0 1,036 2,204 Highest Resource $113,721 8.1% 21.8% 21.3 71.3% No

53.02 31 0 0 0.3% 31 1,071 1,172 Low Resource $90,994 13.7% 16.3% 78.6 70.4% No

53.03 59 6 24 0.7% 89 1,757 1,048 Moderate Resource $64,522 6% 27.2% 61.2 66.6% No

53.05 162 0 10 1.4% 172 972 1,609 Low Resource $96,250 7.8% 33.3% 66.5 68.7% No

53.07 136 0 0 1.1% 136 1,040 1,829 Moderate Resource $74,091 12.2% 7.8% 60.9 62.1% No

53.08 23 0 0 0.2% 23 1,337 867 Moderate Resource $88,602 8.4% 18.6% 53.6 72.8% No

54.03 9 0 0 0.1% 9 2,006 1,594 High Resource $106,328 12.1% 19.5% 43.1 67.7% No

54.05 208 354 11 4.8% 573 1,103 1,282 Moderate Resource $81,790 9.4% 8.8% 55.7 73.1% No

54.06 753 0 37 6.6% 790 1,044 2,372 Low Resource $64,605 13.1% 22.4% 65.0 60.7% No Census Tracts Mostly Outside of Tracy

52.02 22 0 0 0.2% 22 1,285 1,179 High Resource $160,953 11.3% 2.2% 72.3 62.6% No

52.06 1,052 0 0 8.8% 1,052 1,395 2,076 Highest Resource $95,982 3.6% 0% 57.8 57.2% No

52.07 2,510 575 788 32.4% 3,873 865 2,495 Highest Resource $126,442 3.2% 17.1% 43.3 74.4% No

55.02 842 0 3,017 32.3% 3,859 651 1,439 High Resource $150,511 8.2% 3.8% 54.9 62.4% No

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-9 2023-2031 Housing Element
Fair Housing Enforcement and Outreach Capacity
Fair housing services are provided to residents of Tracy primarily though the San Joaquin Fair Housing Association (SJFH). San Joaquin Fair Housing is a U.S. Department of Housing and Urban Development (HUD) approved housing counseling agency, which tenants and landlords in San Joaquin County with services that include tenant and landlord workshops, dispute resolution, and housing counseling.

Federal housing d iscrimination complaints are filed with the HUD Office of Fair Housing Employment Opportunity (FHEO). FHEO administers the Fair Housing Assistance Program (FHAP), which awards and manages the program grants and works with lawmakers to develop and refine fa ir housing legislation. FHEO data from 2015 -2020 shows there were 12 total housing complaints in the City of Tracy, although no complaints were recorded between 2019 and 2020 , of which 58 percent were resolved due to “No Cause”.

The 2020 San Joaquin County Analysis of Impediments to Fair Housing Choice identified the following impediments in the County related to fair housing enforcement capacity:
• Impediments to the development of second units in Tracy and Lathrop, where some single - family zones do no t officially allow for the development of second units, which is required by State law.
• Neither San Joaquin County nor the City of Ripon have updated their definition of family to include non -blood relatives and end restrictions on family size included in their zoning codes.
• Discrimination in lending practices. Non-Hispanic White residents were approved for loans at the highest rate and Hispanic and Latino residents were approved for loans at a higher rate than Black/African American residents moderate-income households apply for government-insured loans at the highest rate among all income groups, which suggests that in the Urban County, moderate -income households may struggle to purchase a home with conventional loans.

A review of relevant City policies and regulations shows that the City is in compliance with all State and Federal civil rights and fair housing laws. This includes compliance with the following:
• California Fair Employment and Housing Act (FEHA) (Part 2.8 (commencing with section 12900) of Division 3 of Title 2);
• California Government Code sections 8899.50, 65008, and 11135; • Civil Code section 51 (the Unruh Civil Rights Act); and • FEHA regulations in California Code of Regulations, title 2, sections 12005-12271 Any legal matters and litigation in the City since the beginning of the 5th Cycle have not been related to fair housing.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-10
C. Integration and Segregation

1. Race and Ethnicity
Ethnic and racial composition of a region i s useful in analyzing housing demand and any related fair housing concerns because it can demonstrate the relationship with other characteristics such as household size, locational preferences and mobility. The racial categories included in the census questionnaire generally reflect a social definition of race recognized in this country and not an attempt to define race biologically, anthropologically, or genetically.

Figure C–2 shows the racial and ethnic m ajority by census tract in the City of Tracy. As illustrated, a majority of the City has a Hispanic majority, while the southernmost areas of the City having a predominant (>50%) White majority. The census tracts near the center of Tracy which consist of downtown have sizeable (10 – 50%) to predominant (>50%) Hispanic majorities, and there is a small tract in the western part of the City with a slim (<10 %) Asian majorit y. The area with the predominant Hispanic majority also has a larger low - to moderate-income population. The central city and downtown areas are where the Hispanic majority is most prominent and are also where the TCAC (Tax Credit Allocation Committee) composite categor ies are Low to Moderate Resourc e opportunity. These are also two of the top three priority areas for economic investment and development as identified in the City’s 10 Year Economic Development Strategic Plan that was adopted in September 2023. The other areas of the City are identified as the High and Highest resource areas of the City.

Figure C–2: Racial and Ethnic Majority by Tract (2017-2021)

Source: HCD AFFH Data Viewer

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-11 2023-2031 Housing Element
Regionally, there is a common correlation between wealth and race, which may help to explain the racial/income concentrations within the City. The City has a similar racial distribution as the County as a whole, with a population that is 43 percent Hispan ic in Tracy, and a population that is also 43 percent Hispanic in San Joaquin County. Tracy has a slightly higher Asian population than the County, at 20 percent compared to the County’s 18 percent.

Figure C–3 shows the percent of the population in each block group that is non-White. As shown in Figure C–3, the areas in the southern and central areas of the City have a more predominant non- White population, and the central western region has the most predominant non-White population.

There is little correlation between this trend and other fair housing distributions, as the trends in the central and downtown areas of the City have minimal correlation with the southern areas of the City. As of 2021, 74 percent of the population in Tracy is non-White, while 72 percent of the County is non-White, indicating that the overall distribution of the non-White population is similar between the City and the region as a whole.

Figure C–3: Percent of the Population that is Non-White and RHNA Sites, 2018

Source: HCD AFFH Data Viewer

Figure C–4 compares the RHNA Units with the percentage of the population that is non -White.

About two-third of the RHNA units are in the areas where 60 to 80 percent of the population is non- White and about one-third is in areas where 40 to 60 percent of the population is non-white, which is reflective of trends in the City as a whole . The Tracy Hills specific plan will be targeting revitalization and place-based improvements in some of the census tracts where 60 to 80 percent of the population is non -white. The plan includes environmental enhancements, a range of housing opportunities, and economic development. Opportunity sites are well distributed across all levels of concentration of the non-White population throughout the City.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-12
Figure C–4: Percent Non-White Comparison of RHNA Units

Dissimilarity Index – Race and Ethnicity
Segregation is defined by the census as the spatial distributions of different groups among units in a metropolitan area. 1 Segregation can be quantified by using the dissimilarity index. The dissimilarity index measures the distribution of two groups in a city and assigns a score between 1 and 100. The level of segregation is determined by assessing what percentage of residents of a census block would have to move for each block to have the exact same population of said group. A score of zero (0) reflects a fully integrated environment; a score of 100 (or 1 00%) reflects full segregation.

Therefore, a higher dissimilarity index indicates higher concentrations of the indicated ethnic groups in areas of the City, when compared to the White population distribution. A lower dissimilarity index implies higher integration, and a more even distribution of each ethnicity when compared to the White population. The formula for this calculation is provided by California Department of Housing and Community Development’s (HCD) AFFH Guidance Document.

The categories for the dissimilarity index on a scale of 1-100 are as follows:
• <30: Low Segregation
• 30 – 60: Moderate Segregation
• >60: High Segregation
Figure C–5 provides the dissimilarity index values in Tracy, indicating the level of segregation between White residents and residents who are non-White, Black, Hispanic, or Asian. In 2019, there was moderate segregation between the non -White and White population s, the Black and White populations, and the Asian and White Populations. There was low segregation between the Hispanic and White populations. A moderate dissimilarity index of 30.30 in the figure below means that 30.30

1 Measures of Residential Segregation https://www.census.gov/topics/housing/housing- patterns/guidance/appendix-b.html
0%
10%
20%
30%
40%
50%
60%
70%
80%
40-60 60-80 80-100
Percent of RHNA Units
Percent of the Population that is Non-White by Block Group Lower Moderate Above Moderate
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-13 2023-2031 Housing Element
percent of Tracy’s non-White or White residents would need to move to a different census block to create balanced integration between non-White and White residents. Segregation at the City level is much lower than San Joaquin County as a whole. The segregation indices have all decreased since 2013.

Figure C–5: Dissimilarity Index for Race

Source: ACS 2013, 2017, and 2019 5-Year Estimates (B03002)

2. Income
The dissimilarity index can also be used to calculate income segregation, using the same scale as above. In the City of Tracy, the income dissimilarity index between the low to moderate income population and the above moderate income population was 37.57 as of 2015. This is a moderate level of income segregation. San Joaquin County also had moderate income segregation, with an index of

37.2. As shown in Figure C–6, the area with a large low to moderate income population is also the area with a predominant Hispanic majority, and the low to moderate resource TCAC designations. There is a smaller low - to moderate -income population in the area with more singl e-family housing.

Income often correlates with housing type —i.e., large single -family areas generally have higher incomes. Compared to the region, Tracy has a higher median income, but a comparable amount of income disparity.

Figure C–7 shows the percentage of RHNA units compared to the percent of each tract that is in the low- to moderate-income category. About 85 percent of RHNA units are in areas where less than 25 percent of the population is low to moderate income. Housing mobility is being encouraged by proposing lower and moderate income RHNA sites , and the accompanying rezoning, in the areas with a smaller low- to moderate-income population.

31.33 43.33

24.79 40.63

46.99 61.07

39.85 55.03

29.46 35.80

19.17 35.50

43.28 56.20

38.57 53.40

30.30 38.56

22.76 34.00

42.00 56.24

38.93 52.60
-
10 20
30 40
50 60
70 Non-White/White
Black/White
Hispanic/White
Asian/White
Non-White/White
Black/White
Hispanic/White
Asian/White
Tracy San Joaquin County
2013 2017 2019
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-14
Figure C–6: Sites Inventory and Low to Moderate Income Populations by Tract (2017-2021)

Figure C–7: Low to Moderate Income Population Comparison of RHNA Units

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0-25 25-50
Percent of RHNA Units
Percent of the Population that is Low to Moderate Income by Tract Lower Moderate Above Moderate
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-15 2023-2031 Housing Element
Figure C–8 shows the number of households with income levels similar to the income ranges provided by the HCD In come Limits. The above-moderate income category has the largest percentage of the population, while the very low-income category has the smallest population. The moderate-income category is relatively predominant, while the size of the extremely low population and low-income population is relatively comparable.

Figure C–8: Households per Income Level, 2021

Source: 2021 ACS Table B19001

According to U.S. Census 2016-2020 American Community Survey estimates, the median household income for Tracy was $95,741. This is about 40 percent higher than the San Joaquin County median household income of $68,628.

Figure C–9 shows median household income by census tract. In Tracy , the highest median household incomes are located in the western and southern portions of the City , where there is newer development, single family neighborhoods, and more open space. The lowest median incomes are in the central downtown and surrounding tracts , which is an older area of the City as seen in Figure C–10. The western and southern tracts have more open space and agriculture, so the population as a whole is generally more concentrated in the central, downtown areas of the C ity, which may skew data perception. Additionally, the tracts in the southern and western regions of Tracy have the majority of their acreage outside of the City of Tracy, making it likely that the small portion of tracts within the City are not primarily responsible for overall trends , and the maps may not accurately reflect the conditions in those portions of Tracy . Newer single -family development primarily has recently occurred in the west and homes are often more expensive than older small homes in the downtown areas, which correlates with higher income households in these newer western areas. Newer single -family development is also occurring in the specific plans in the southern regions. The City included Program 13: Accessory Dwell ing Units, to provide for additional housing options in higher -income areas of the City . The program includes informative sheets and brochures, and development of incentives to increase the production of ADUs include financial assistance with construction, pre-approved plans, and technical assistance. 3,803
818
4,179
8,422
11,131
0 2,000
4,000
6,000
8,000
10,000
12,000
$0 to $34,999 $35,000 to $44,999 $45,000 to $74,999 $75,000 to $124,999 $125,000 or more Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-16
Figure C–9: Median Household Income by Tract (2017-2021)

Figure C–10: Building Age

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-17 2023-2031 Housing Element
Figure C–11 and Figure C–12 show the change in the population under the federal poverty line by census tract from 2010-2014 to 2017-2021. Poverty is defined by incomes falling below the annually defined thresholds for family size by the U .S. Census. As shown in Figure C–12, poverty levels in the central downtown area of the City have increased over time.

The area with the slightly higher rate of poverty is in the same downtown area which is in the moderate opportunity TCAC designation. In 202 1, 9.8 percent of Tracy’s overall population was below poverty level. Poverty in San Joaquin County is also low, with overall 7.7 percent of the population living below the poverty level. The City is pursuing a number of investments, long-range planning effor ts, and improvements in various geographic areas of the City with greater need, specifically downtown Tracy and central areas of the City. Efforts include the Gran Theater repair, pedestrian and bikeway improvements, and park improvements, as well as a 10 Year Economic Development Strategic Plan and Downtown Transit-Oriented Specific Plan.

As RHNA sites are distributed throughout areas of the City and are not concentrated in areas with concentrations of poverty, the distribution of the sites is unlikely to have an effect on distribution of poverty.

Figure C–11: Poverty Status by Tract (2010-2014)

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-18
Figure C–12: Sites Inventory and Poverty Status by Tract (2017-2021)

Source: HCD AFFH Data Viewer

Figure C–13 displays the distribution of housing choice vouchers (HCV) in the City. The HCV program is a 100 percent federally funded rental subsidy for low -income households living in privately owned rental units. The County of San Joaquin Housing Authority (HACSJ) administers the HCV program for those in Tracy. The HCV program makes payments directly to the landlord and allows households to choose where they want to live, as long as the unit meets minimum standards. Voucher amounts are dependent on family size and income and can expand housing choice and options for those on limited incomes, including those with low incomes, people with disabilities, and the elderly.

The City does not own any public housing; however, HACSJ owns and manages affordable housing units in Tracy and throughout the San Joaquin County. HACSJ owns the Tracy Apartment, a 73‐unit affordable senior housing complex with approximately half of the units rese rved for special needs seniors. Many of the seniors in this housing complex use housing choice vouchers . There is very little housing choice voucher use throughout the City.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-19 2023-2031 Housing Element
Figure C–13: Housing Choice Vouchers by Tract (2021)

Source: HCD AFFH Data Viewer

3. Familial Status
Figure C–14 shows the percentage of children that are living in female -headed households with no spouse by census tract. It also shows pending projects and proposed RHNA opportunity sites. In 2021, 3,052 households, or 12.9 percent of total households in Tracy, were female-headed households, which is about 7 percent lower than in the County, at 19.7 percent. The central, downtown area has a slightly higher concentration of female-headed households, in correlation with higher rates of poverty and lower median incomes. As shown in Figure C–15, RHNA pending and opportunity sites are distributed throughout the City and are not expected to impact fair housing concerns based on familial status. The vast majority, 91 percent of RHNA units are located in tracts where 0 – 20 percent of children are living in female -headed households with no spouse, as the majority of Tracy falls into this category.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-20
Figure C–14: Sites Inventory and Children in Female-Headed Households by Tract (2021)

Figure C–15: Female Headed Households Comparison of RHNA Units

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0-20 20-40
Percent of RHNA Units
Percent of Children in Female-Headed Households by Tract Lower Moderate Above Moderate
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-21 2023-2031 Housing Element
As shown in Figure C–16, there is little variation in Tracy of areas with high concentrations of children in married-couple households. There is a slightly smaller concentration in the downtown area. In Tracy, 42.4 percent of households are married couple households with children present, compared to 33.3 percent countywide. RHNA pending and opportunity sites are distributed throughout the City and are not expected to impact fair housing concerns based on familial status.

Figure C–16: Children in Married-Couple Households by Tract (2021)

4. Persons with Disabilities
The U.S. Census Bureau provides information on the number of persons with disabilities of varying types and degrees. According to the US Census Bureau, a person is considered to have a disability if they have difficulty performing certain functions or difficulty w ith certain social roles.

Affordability of appropriate housing and access, both within the home and to/from the home site, are the primary challenges for persons with disabilities. Access often requires specially designed dwelling units. Additionally, housing locations near public facilities and public transit are important for these special needs group s. The 2021 American Community Survey estimates that 9 percent of Tracy and 12 percent of San Joaquin County residents have a disability.2 The types of disabilities included in the Census are:
• Hearing difficulty: deaf or has serious difficulty hearing • Vision difficulty: blind or has serious difficulty seeing even with glasses • Cognitive difficulty: has serious difficulty concentrating, remembering, or making decisions • Ambulatory difficulty: has serious difficulty walking or climbing stairs

2 U.S. Census Bureau, American Community Survey 5-year Data (2015–2019), Table B18101

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-22
• Self-care difficulty: has difficulty dressing or bathing • Independent living difficulty: ha s difficulty doing errands alone, such as visiting a doctor’s office or shopping
Figure C–17 shows an estimate of the number of Tracy residents with disabilities by type of disability and age group. The most prevalent types of disability are ambulatory and cognitive difficulties. Note that individuals may have more than one type of disability.

Ambulatory issues are the highest reported disability countywide. A large population with walking difficulty creates a need for single -story housing, elevators, transit access, wheelchair access, larger homes or ADUs for live -in help, and proximity to health facilities. The City has included Program 12: Accessory Dwelling Units, to provide for additional housing options in higher -income areas of the City. The program includes informative sheets and brochures, and development of incentives to increase the production of ADUs include financial assistance with construction, pre-approved plans, and technical assistance.

Figure C–17: Disability Characteristics, Tracy, 2021

Source: 2021 ACS S1810.

Figure C–18 shows the disabled population is relatively evenly distributed throughout Tracy. There were no significant changes in location or concentration of those with a disability from 2010–2014 to 2017–2021. There is no area of the City with an extreme concentration of persons with disabilities.

The central downtown area does have a slightly larger disabled population, though the difference is minimal. A larger or more concentrated disabled population may indicate a greater need for access to health care. However, health care facilities are also more concentrated in the central dow ntown area.

Figure C–19 also shows pending and proposed RHNA Opportunity sites in the context of persons with a disability. As shown in Figure C–19, the RHNA sites are all in areas where less than 10 percent of the population has a disability. As such, the sites are not expected to cause fair housing concerns as they relate to residents with a disability.
0 500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Hearing Difficulty Vision Difficulty Cognitive
Difficulty
Ambulatory
Difficulty
Self Care
Difficulty
Independent
Living Difficulty
Population by Age
Disability Type
<18 years old 18-64 years old ≥65 years old
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-23 2023-2031 Housing Element
Figure C–18: Population of Persons with Disabilities by Tract (2010-2014)

Figure C–19: Sites Inventory and Population of Persons with Disabilities by Tract (2017-2021)

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-24
Figure C–20: Population with a Disability Comparison of RHNA Units

5. Findings
Overall, the City of Tracy has higher concentrations of the non-White and low- to moderate-income residents in the central downtown area of the City. This area is also where the census tracts are primarily in the low or moderate opportunity categories, and where poverty and disability are most prevalent. RHNA sites are distributed throughout the City, without an extreme concentration in the central downtown area. The City is pursuing a number of investments, long-range planning efforts, and improvements in various geographic areas of the City with greater need, specifically downtown Tracy and central areas of the City. Efforts include the Gran Theater repair, pedestrian and bikeway improvements, and park improvements, as well as a 10 Year Economic Development Strategic Plan and Downtown Transit-Oriented Specific Plan.

Much of the western and southern portions of Tracy have been recently developed, or are pending development of specific plans.

The City is includ ing Program 13: Accessory Dwelling Units, to provide for additional housing options in higher-income areas of the City. The program includes informative sheets and brochures, and development of incentives to increase the production of ADUs include financial assistance with construction, pre-approved plans, and technical assistance. 0%
20%
40%
60%
80%
100%
120%
0-25
Percent of RHNA Units
Percent of the Population with a Disability by Tract
Lower Moderate Above Moderate
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-25 2023-2031 Housing Element
D. Racially and Ethnically Concentrated Areas of Poverty and Affluence

1. R/ECAPs
HUD defines Racially and Ethnically Concentrated Areas of Poverty (R/ECAP) as areas where the percentage of the population that is non-White is over 50 percent and the percentage of households with incomes below the poverty line is over 40 percent. Alternatively, a neighborhood can be a R/ECAP if it has a poverty rate that exceeds 40 percent or is three or more times the average census tract poverty rate for the metropolitan/micropolitan area, whichever threshold is lower.

As shown in Figure C–21, there are no R/ECAPs in the City of Tracy per HCD’s AFFH Data Viewer Tool. The closest R/ECAP to Tracy is in the City of Stockton, about 20 miles northeast of the City.

There are no RHNA sites that are in R/ECAPs and the site selections will not create conditions that lead to a R/ECAP.

Figure C–21: Presence of a R/ECAP Comparison of RHNA Units

2. Racially Concentrated Areas of Affluence
HUD defines Racially Concentra ted Areas of Affluence (RCAAs) as areas where the percentage of the population in a tract that is White is over 1.25 times the average percentage of the population that is White in the given Council of Governments (COG) region and median income is 1.5 time s higher than the COG or State AMI, whichever is lower.

The City of Tracy has an RCAA area in the southern tip of the City. The southern census tracts have more open space and agriculture, as well as an airport, so the population as a whole is generally less concentrated in these areas, which may skew data perception. However, newer single -family development is primarily occurring in these areas. Newer large homes are often more expensive than older small homes in the downtown areas, which correlates with higher income households in these newer areas. Additionally, these census tracts have the majority of their acreage outside the City of Tracy, making it likely that the small portion of the tract within the City is not responsible 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No R/ECAP Present No R/ECAP Present
Percent of RHNA Units or City Acreage
Presence of a R/ECAP by Tract
Lower Moderate Above Moderate City Acreage
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-26
for the overall RCAA desig nation and that the categorization does not accurately reflect the conditions in the City of Tracy.

Program 7: Affordable/Workforce Housing includes a number of actions to introduce middle income housing in existing single -family neighborhoods and to facilitate the development of medium density multi-family housing.

The City is included Program 1 2: Accessory Dwelling Units, to provide for additional housing options in higher-income areas of the City. The program includes informative sheets and brochures, and development of incentives to increase the production of ADUs include financial assistance with construction, pre-approved plans, and technical assistance.

Figure C–22: RCAAs Vicinity and RHNA Sites

E. Disparities in Access to Opportunities

1. California Tax Credit Allocation Committee (TCAC)
One tool that can be used to analyze disparities in access to opportunities is the California Tax Credit Allocation Committee’s (TCAC) Opportunity Area scores. These were prepared by a task force commissioned by TCAC and HCD to identify areas statewide whose economic, educational, and environmental characteristics support positive outcomes for low -income families. The map is updated annually. Opportunity maps are made for three domains: economic, environmental, and education. Each map uses categorical indicators to determine its individual score. A composite score and resource designation combining all three designations is then assigned to each block group.

To determine the final resource category, the top 20 percent of overall scores in a county are labeled as highest resource and the next 20 percent of scores are labeled as high resource. Then, any area that is considered segregated and that has at least 30 percent of the population living below the

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-27 2023-2031 Housing Element
federal poverty line is labeled as an area of High Segregation and Poverty. Any remaining uncategorized areas in the County are evenly divided between moderate resource and low resource areas. The rationale and metric for e ach indicator is described in more detail in current guidance documents for the California TCAC program.3 Additional information regarding these indicators in Tracy are provided on the following pages.

Economic Indicators
TCAC economic scores for the City by tract are presented in Figure C–23. TCAC economic scores are based on the following variables : poverty, adult education, employment, job proximity, and median home value. Most of Tracy has more positive economic scores (0.5 - 0.99). The less positive scoring area includes part of the downtown core , the Sutter Tracy Community Hospital, and some commercial and residential uses throughout. The more positive scoring areas are located largely at the edges of the City and include the regional shopping center and several companies and federal agencies that support the global supply chain. The City trends higher in scores due to the proximity of these types of companies and agencies.

In September 2023, the City adopted a Ten-Year Economic Development Strategic Plan to help the City focus implementation efforts on strategic economic development priorities. The strategic plan identified and prioritized eight key areas as opportunity sites. The top priority identif ied is the downtown area, the second is the west side, and the third is commercial corridors in the center of the City. The downtown area and commercial corridors have lower economic TCAC scores. The strategic plan helps support growth in these areas and m akes recommendations to enhance economic resilience, expand market access, encourage investment, improve quality of life, and improve infrastructure in these areas.

3 https://www.treasurer.ca.gov/ctcac/opportunity/2022/2022-hcd-methodology.pdf Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-28
Figure C–23: TCAC Opportunity Areas – Economic Score by Tract (2021)

Education Indicators
Education indicators include math and reading proficiencies of fourth graders, high school graduation rates, and the student poverty rate. Most of Tracy is served by the Tracy Joint Unified School District, which includes 7 elementary schools , 2 middle schools , 5 high schools, and 4 K-8 schools. Portions of the City are also served by Jefferson School District south of Valpico Road and by the Lammersville Unified School District in the northwest portion of the City. According to Great Schools, 53 percent of schools in the district are rated below average, 37 percent are rated average, and 11 percent are rated above average.4
As shown in Figure C–24, most of the City has more positive education scores, largely at the edges of the City. Although many of these areas include single family residential most of the positive score areas in the east and west are either agricultural land or industrial uses which can skew the results. A majority of the central areas of the City have less positive education scores.

4 Great Schools Tracy Unified District Summary. https://www.greatschools.org/california/tracy/tracy- joint-unified-school-district/

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-29 2023-2031 Housing Element
Figure C–24: TCAC Opportunity Areas – Education Score by Tract (2021)

Environmental Indicators
The TCAC Environmental Score domain utilizes CalEnviroScreen 3.0 pollution indicators and values, however similar the CalEnviroScreen 4.0 scores (see Figure C–29) are based on percentiles and show trends similar to the TCAC environmental score map. TCAC Environmental Scores range from 0 to 1, where h igher scores indicate a more positive environmental outcome (better environmental quality). As shown in Figure C–25, the scores are the inverse of the economic indicators, where the central areas of the City score more positive than the outlying areas. This is largely due to the location of the various distribution centers located on the edges of the City, specifically in eastern parts of the City. The less positive scores in the southern tracts are due to high exposure to pesticides and high environmental effects including groundwater threats and the presence of hazardous waste.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-30
Figure C–25: TCAC Opportunity Areas – Environmental Score by Tract (2021)

TCAC Composite Score
TCAC Opportunity Area scores for Tracy have been compiled by tract and are presented geographically in Figure C–26. A majority of the tracts in Tracy are either high or highest resource , there are four moderate resource (rapidly changing) tracts and five low resource tract s. Moderate resource tracts are designed to identify areas that may become high resource.

The highest resource tracts are located in the western part of the City and extend beyond City limits and include agricultural land and the regional shopping area near Interstate 205. The other highest resource tracts are located just south of the downtown core and are largely residential . The higher resource tracts include a majority of the industrial area in the northeast and single family residential in the southern and central tracts. The moderate and low resource tracts are all located in central Tracy which includes the downtown and where the biggest mix of land use occurs.

Highest resource areas tend to have smaller populations of people of color while block group s in and around moderate resource tracts tend to have larger populations of people of color (see Figure C–3). The moderate and low resource tracts also have a higher percentage of low- and moderate- income (LMI) households, person in poverty , and children in single -parent female -headed households and TCAC opportunity scores (see Figure C–6, Figure C–12, and Figure C–14).

The majority of Tracy is designated as either high or highest resource. Approximately 85 percent of the RHNA opportunity sites are located in the high or highest resource areas , meaning about 15 percent of the RHNA opportunity sites are located in low and moderate resource tracts (see Figure C–30). The majority of lower-income RHNA opportunity sites (78percent) are located in the high and highest resource opportunity areas. The distribution of the majority of the RHNA opportunity

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-31 2023-2031 Housing Element
sites within the high and highest resource areas will not exacerbate any conditions , but rather provide more equitable housing opportunities in high resource areas in Tracy.

Figure C–26: Sites Inventory and TCAC Composite Score by Tract (2022)

Figure C–27: Distribution of RHNA Units by TCAC Category

0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
Low Resource Moderate Resource High Resource Highest Resource Percent of RHNA Units
TCAC Composite Category by Census Tract
Lower Moderate Above Moderate
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-32

2. Transportation
Access to adequate transportation and a variety of transit options can help illustrate disparities in access to opportunities. The City of Tracy provides a Fixed Route bus service via the TRACER that connects riders to amenities throughout the City (see Figure C–28). The City also provides an On- Demand bus service , and a Paratransit Service which is a door to door service available for ADA/Medicare passengers and Tracy residents aged 65 and older.

Connection to neighboring cities in San Joaquin County can be made at the Tracy Transit Station via the San Joaquin Region Transit District (RTD) buses. RTD provides two regional connections from Tracy, Route 150 which connects to the Livermore/Dublin Bay Area Rapid Transit (BART) station and the greater San Francisco Bay Area and Route 90 which connects to Stockton.

Figure C–28: Transit Route Map

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-33 2023-2031 Housing Element

3. CalEnviroScreen 4.0
The California Office of Environmental Health Hazard Asse ssment (OEHA) compiles data to help identify California communities disproportionately burdened by multiple sources of pollution. In addition to environmental factors (pollutant exposures, groundwater threats, toxic sites , a nd hazardous materials exposure) and sensitive receptors (seniors, children, persons with asthma and low birth weight infants), CalEnviroScreen also take into consideration socioeconomic factors. These factors include education attainment, linguistic isolation, poverty, and unemployment.

CalEnviroScreen 4 .0 percentile scores follow trends similar to TCAC environmental scores ( see Figure C–25). The western and southern areas of the City have the lowest (best) CalEnviroScreen 4.0 percentile scores in the City . Scores get progressively worse towards the northeastern side of the City largely due to factors discussed in the environmental indicators section ( large presence of distribution centers).

Figure C–29 and Figure C–30 shows the distribution of RHNA units by CalEnviroScreen 4.0 percentile scores. As discussed previously, the northeastern sections of the City have higher (worse) scores compared to the central and western areas of the City. The largest percent of the RHNA units are located within the 50-60 percentile range (46%), with another 42 percent of units located in the 20-30 and 40 -50 percentile groups. Lower-income RHNA units are spread across the CES score percentile groups. Less than one percent of the RHNA units are located in the 70-80 percentile range.

Areas where CalEnviroScreen 4.0 scores are the lowest in predominately single-family residential neighborhoods where there is a higher concentration of above moderate income units. Multifamily zoning districts and sites that can accommodate higher density housing, including lower income units, tend to be more concentrated in the central and western areas of Tracy.

Figure C–29: Sites Inventory and CalEnviroScreen 4.0 Percentile Score by Tract

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-34
Figure C–30: Distribution of RHNA Units by CalEnviroScreen 4.0 Percentile Score

4. Findings
Overall, the City of Tracy has largely high and higher resource tracts and higher scores in opportunity metrics compared to the County as a whole. As such, many of the RHNA sites are located in high resource tracts (see Figure C–26). As stated previously, TCAC and CalEnviroScreen

4.0 scores are the highest in predominantly single-family residential neighborhoods where there is a higher concentration of above moderate income units. Multifamily zoning district s and sites that can accommodate higher density housing, including lower income units, tend to be more concentrated in the central and western areas of the City. The lower-income opportunity sites are evenly distributed among the range of CES 4.0 categories. As shown in Figure C–30, there are more lower-income units than there are above -moderate units in the best ( lowest score) CES 4.0 score areas.

Program 7 includes actions to expand housing choices in the community , including in higher resources areas, such as tiny home, duplex, tr iplex, fourplex, and medium density multi -family housing. The City is pursuing a number of investments, long -range planning efforts, and improvements in various geographic areas of the City with greater need, specifically downtown Tracy and central areas of the City. Efforts include the Gran Theater repair, pedestrian and bikeway improvements, and park improvements, as well as a 10 Year Economic Development Strategic Plan and Downtown Transit-Oriented Specific Plan.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
20-30 40-50 50-60 60-70 70-80
Percent of RHNA Units
CalEnviroScreen Percentile by Tract
Lower Moderate Above Moderate
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-35 2023-2031 Housing Element
F. Disproportionate Housing Needs

1. Substandard Housing
The AFFH Rule Guidebook defines disproportionate housing needs as a condition in which there are significant disparities in the proportion of members of a protected class experiencing a category of housing needs when compared to the proportion of a member of any other relevant groups or the total population experiencing the category of housing need in the applicable geographic area (24 C.F.R. § 5.152). The analysis is completed by assessing cost burden, overcrowding, and substandard housing. The Comprehensive Housing Affordability Strategy (CHAS) developed by the Census for HUD provides detailed information on housing needs by income level for different types of households in San Joaquin County. Housing problems considered by CHAS include:
• Housing cost burden, including utilities, exceeding 30 percent of gross income; • Severe housing cost burden, including utilities, exceeding 50 percent of gross income; Overcrowded conditions (housing units with more than one person per room); and • Units with physical defects (lacking complete kitchen or bathroom) According to CHAS data based on the 2015 -2019 ACS, approximately 86 percent of San Joaquin County households experience housing problems, compared to 83 percent of households in Tracy.

In both the County and City, renters are more likely to be affected by housing problems than owners.

Large and elderly households are also often more likely to experience housing problems . A large household is a household with three or more children but is also often calculated as a household with five or more people. An elderly household is calculated as any household with a person over 62 years of age.

Housing problems by race and ethnicity and by large and elderly households for Tracy and San Joaquin County i s shown in Figure C–31. Overall, there is relative parity of the percentage of households with housing problems by race among home owners in Tracy (30-37%). There is a greater range of household problems among rent ers in Tracy (38-60%), but similar to the patterns in the County. Hispanic and Pacific Islander renters experience housing problems at the highest rate in Tracy, around 53 and 60 percent respectively and is similar when compared to the County 59 percent (Hispanic) and 65 percent (Pacific Islander). Rates of housing problems for Whites and Asians are also comparable between the City and County. In 2019 , there was no Native American population in the City, which indicated why Figure C–31 reads that 0 percent of that population group experiences housing problems.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-36
Figure C–31: Housing Problems by Tenure and Race/Elderly/Housing Size

Source: HUD CHAS Data, 2019

Households paying 30 percent or more of their income in housing costs (i.e., rent, mortgage, or utilities) are considered cost burdened and households paying 50 percent or more on their income are considered severely cost burdened. Large households have more costs to support more people and may experience cost burden or a lack of excess funds to amend housing problems. Elderly households may be on a fixed income, which affects excess funds necessary f or maintenance in an older home bought before retirement.

Cost burden by race and ethnicity and by large and elderly households for Tracy and San Joaquin County is shown in Figure C–32. As mentioned above, renter-occupied households are more likely to experience housing problems and cost burden. About 42 percent of renter -occupied households in the City experience cost burden compared to only 29 percent of owner-occupied households. The percentage of City households experiencing burdens is lower than the same cohort in the County for all categories of renters and most categories of owners.

Figure C–32: Cost Burden by Tenure and Race/Elderly/Housing Size

Source: HUD CHAS Data, 2019
0%
10%
20%
30%
40%
50%
60%
70%
80%
White Black Asian Nat Am Pac Islander Hispanic Elderly Large All Owner-Occupied Renter-Occupied San Joaquin County
0%
10%
20%
30%
40%
50%
60%
70%
White Black Asian Nat Am Pac Islander Hispanic Elderly Large All Owner-Occupied Renter-Occupied San Joaquin County
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-37 2023-2031 Housing Element

Cost burdened owners by tract are compared using the 2010-2014 and 2017-2021 ACS data in Figure C–33 and Figure C–34. The proportion of cost burdened renters and owners has varied from tract to tract during this period. The proportion of cost burdened owners has increased in several tracts along the northern boundary and decreased in tracts in the southern and central area of the City. As seen in Figure C–35 and Figure C–36 proportion of cost burdened renters has increased in the southernmost tract , but most significantly in the northwest while decreasing in the westernmost tract and two tracts in central Tracy . There is one owner-and renter -occupied tract where 60 -80 percent of households are cost burdened , all other tracts have <60 percent of households that are cost burdened.

In general, areas where overpayment is more prevalent are more highly populated and have larger proportions of people of color (see Figure C–3). Low- and moderate-income households, persons with a disability, and low and moderate resource tracts are also more concentrated in these areas (see Figure C–6, Figure C–19, and Figure C–26).

Figure C–33: Cost Burdened Owner-Occupied Households by Tract (2010-2014)

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-38
Figure C–34: Sites Inventory and Cost Burdened Owner-Occupied Households by Tract (2017-2021)

Figure C–35: Cost Burdened Renter-Occupied Households by Tract (2010-2014)

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-39 2023-2031 Housing Element
Figure C–36: Sites Inventory and Cost Burdened Renter-Occupied Households by Tract (2017-2021)

2. Overcrowding
A household is considered overcrowded when there is more than one person per room, including living and dining rooms but excluding bathrooms and kitchens. Overcrowding can affect public facilities and services, reduce the quality of the physical environment, and create conditions that contribute to deterioration of the housing stock. Additionally, overcrowding can indicate that a community does not have an adequate supply of affordable housing and/or variety of suitable housing units to meet the needs of the community. Lower income households are more likely to experience overcrowding in order to make housing more affordable. Large families are also more prone to experiencing poverty.

Figure C–37 shows overcrowded households by tract in Tracy. Tracy has six tracts that exceed the Statewide average of 8.2 percent, all of which are adjacent to each other and located in the northern and central part of the City. Low- and moderate-income households and populations of people of color are also more concentrated in these areas (see Figure C–6 and Figure C–3).

Overcrowding by tenure for the City of Tracy and San Joaquin County is included in Table C-2. As shown, overcrowding is less prevalent in the City (6.4 percent) compared to the County (7.4), including 2.3 percent of owner-occupied households and 4.2 percent of renter-occupied households.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-40
Figure C–37: Sites Inventory and Overcrowded Households by Tract (2017-2021)

Table C-2: Overcrowding by Tenure (2019)
Jurisdiction
Persons per
Room
Owners Renters Total
Overcrowded
Households
% of
Total
Overcrowded
Households
% of
Total
Overcrowded
Households
% of
Total
Tracy 1.01 to 1.50 1,205 1.6% 2,080 2.7% 3,285 4.2%
>1.50 515 0.7% 1,154 1.5% 1,669 2.2%
Total
Overcrowded
1,720 2.3% 3,234 4.2% 4,954 6.4%
San Joaquin
County

1.01 to 1.50 13,609 2.0% 23,805 3.5% 37,414 5.5%
>1.50 3,704 0.5% 9,625 1.4% 13,329 1.9%
Total
Overcrowded
17,313 2.5% 33,430 4.9% 50,743 7.4%
Source: HUD CHAS Data, 2019

3. Homelessness
Continuums of Care are required by HUD to conduct a Point -in-Time (PIT) Count of sheltered individuals, youth, and families experiencing homelessness on a yearly basis . HUD only requires the count every two years for an unsheltered persons. As of May 2023, the results from January 2023 PIT have not been released. This analysis relies on the 2022 San Joaquin County Homeless County and Survey to assess homelessness in the County.

Populations of persons experiencing homelessness are most concentrated in the Cities of Manteca and Stockton. Table C-3 shows the change in homeless population by jurisdiction from 2019 to 2022.

During this period, all jurisdictions had a decrease in homeless population except for Lodi (+39.8%).

The homeless population in Tracy decreased by 22.2 percent during this period.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-41 2023-2031 Housing Element
Table C-3: Homeless Population by Jurisdiction (2019-2022) Homeless Population 2019 2022 Percent Change
Stockton 921 893 -3.1%
Manteca 218 129 -51.3%
Tracy 155 124 -22.2%
Lodi 139 208 +39.8%
Lathrop 14 0* -
Ripon 7 0* -
Escalon 4 0* -
Source: Analysis of Impediments/Regional PITC Data
* no count was conducted in these areas in 2022

In September 2020, the Tracy City Council gave direction to move forward with the development of plans for the design and construction of a temporary housing facility. The project site is located on

4.8 acres at 370 W. Arbor Avenue . The 6,300 -square-foot low -barrier navigation facility will accommodate people, pets, and possessions and is anticipated to provide shelter for approximately 68 residents within a congregate sprung shelter. Underground site work was co mpleted in August 2022. This project has experienced significant delays in construction. The City Council gave direction to move on alternative housing options due to the delay in construction and declared an emergency shelter crisis (Resolution 2022-121). This Resolution directed the City Manager to take immediate and emergency actions necessary to implement interim housing solutions for Tracy’s unsheltered population. These interim housing solutions provided a Phase 3 and Phase 4 of the Arbor Avenue site which allowed the City to procure goods and services t o support additional units. Phase 3 consists of 48 units whin modular dormitory facilities and Phase 4 includes 38 container units that are currently in construction. There are currently 48 beds in serv ice at the Arbor Avenue site. In addition, the City has contracted with two providers, one that provides oversight of the shelter’s day-to-day operations and the other that provides the referral and intake process for entry into the shelter.

Table C-4 lists emergency shelters and transitional housing in and adjacent to Tracy.

Table C-4: Homeless Facilities in or Adjacent to Tracy
Facility Name Type of Facility Target Population
Number of Shelter Beds
of Families Served
Tracy Temporary Emergency Housing Emergency Shelter Adults 68 (upon completion) Tracy Temporary Emergency Housing
(Tracy Interim Shelter Site)
Low-Barrier Emergency
Shelter
Adults/Couples/
Pets
48 McHenry Tracy Family Shelter Transitional Housing Families 7 Families Emerson House Transitional Housing Men 18 Singles
Rochester House (older adults) Supportive Transitional
Housing
Men 10 Singles

4. Displacement
The Urban Displacement Project at University of California, Berkeley, developed a map of “sensitive communities” where residents may be particularly vulnerable to displacement in the event of increased redevelopment and drastic shifts in housing cost. Sensitive communities are defined based on the following set of criteria:

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-42
• The share of very low-income residents is above 20 percent. • The census tract must also meet two of the following criteria:
• The share of renters is above 40 percent.
• The share of people of color is above 50 percent.
• The share of very low -income households (50 percent AMI or below) that are severely rent burdened is above the county median.
• The census tract, or ar eas in close proximity, have been experiencing displacement pressures. Displacement pressure is defined as:
▪ The percentage change in rent in a selected census tract, divided by county median rent increases OR
▪ Median rent in a selected census tract, minus median rent for all surrounding tracts, divided by median rent for all tracts in county (rent gap).

Figure C–38 shows the areas vulnerable to dis placement as identified by the Urban Displacement Project. There are three tracts in the Tracy that have been identified as sensitive communities at risk of displacement. All of these tracts are located in central Tracy which includes the downtown core.

The City is attempting to meet its RHNA without displacing existing residents by identifying vacant and underutilized sites that do not have existing residential uses. Therefore, the City’s RHNA strategy is not anticipate d to exacerbate risk of displacement. Instead, it is expected to counteract this vulnerability and minimize displacement by planning for and providing new housing opportunities for all income levels in areas with greater risk of displacement.

Figure C–38: Communities Vulnerable to Displacement

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-43 2023-2031 Housing Element

5. Findings
Overall, the City of Tracy experiences housing problems at lower rate than the region as a whole, while rates of cost burden or overpayment are higher. The proportion of cost burdened renters and owners has varied from tract to tract between 2010 and 2021 and overcrowding is less prevalent in the City of Tracy compared to San Joaquin County.

The City is including a displacement prevention program to provide information and re sources regarding displacement prevention and income protection and ensure there is no net loss of affordable housing units in the City. Additionally, the City is including a Down Payment Assistance (DAP) Down Loan Program provides deferred down payment assistance loans, for 20 percent of the sales price up to $40,000 (Program 5) and a Housing Rehabilitation Program (Program 1) to assist property owners in making needed renovations and improvements affordable for low income homeowners
G. Other Contributing Factors
In 1878 construction of a new rail line was started from Oakland around the shores of San Francisco Bay, through Martinez to connect to the Central Pacific at a point three miles to the east of Ellis. The line had been built to make possible greater efficiency by avoiding hills and to eliminate the expense of helper engines. The result of the new rail line was the founding of Tracy on September 8, 1878 .

Tracy grew as a railroad center (railroad headquarters and supporting industries/services) as new lines were developed to Los Angeles. Tracy was incorporated in 1910 and grew rapidly after the first irrigation system was developed. As the railroad operations declined the City is now an agricultural area.

H. Fair Housing Issues, Contributing Factors, and Meaningful Action
The City has adopted goals and actions that specifically address the contributing factors identified in the AFFH analysis. While the City views all contributing factors as an important priority to address, higher priority was given to factors that limit fair housing choice and/or negatively impact fair housing, per Government Code section 65583(c)(10)(A)(iv).

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-44
Table C-5 displays the identified fair housing issue, contributing factor, actions taken to address the contributing factor, and priority level for each issue. Relevant programs are referenced in the action column for each contributing factor.

Table C-5: Contributing Factors
Identified Fair
Housing Issue Contributing Factor Action Priority
Segregation
and Integration
• Lack of availability of high
density zoning
• Variety and availability of
affordable housing
Program 4 – Affordable Housing Monitoring
Program 8 – Housing Choice Voucher
Program
Program 11 – Provision of Adequate Sites
and Monitoring of No Net Loss
• Significant rezoning of opportunity areas
in high resource areas
Program 13 – Inclusionary Housing
Moderate
Disproportiona
te Housing
Needs
• Variety and availability of
affordable housing
• Lack of public investment in
low resource areas
• Lack of adequate
infrastructure for growth in
high resource areas
Program 1 – Housing Rehabilitation
Program 4 – Affordable Housing Monitoring
Program 6 – Home buyer and literacy training
Program 7 – Affordable and Workforce
Housing
Program 12 – Property Acquisition and
Improvement
Displacement Prevention
High
Access to
Opportunities
• Lack of availability of high
density zoning
• Variety and availability of
affordable housing
• Access to financial services
• Lack of public investment in
low resource areas
Program 4 – Affordable Housing Monitoring
Program 5 – Down payment Assistance Loan
Program
Program 6 – Home buyer and literacy training
10 Year Economic Development Strategic
Plan
Program 7 – Affordable and Workforce
Housing
Program 13 – Inclusionary Housing
High
Outreach and
Enforcement
Capacity
• Lack of resources for fair
housing agencies and
organizations
• Lack of marketing community
meetings
• Lack of language access
Program 17 – Fair Housing
• Contracting with the fair housing provider
to provide services.

Housing Resources Education and Bilingual
Materials
Place Based Improvements
Low

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-45 2023-2031 Housing Element
Table C-6 provides a detailed overview of actions included in Housing Element Programs that are aimed at affirmatively furthering fair housing. The table separates the actions by their identified fair housing issue and priority level. It summarizes the specific commitment, timeline, geographic targeting, and metric for each program.

Table C-6: AFFH Actions Matrix
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric Fair Housing Outreach and Enforcement
Program 17 – Fair Housing The City actively furthers fair housing in the community.

Specifically, the City contracts the
San Joaquin Fair Housing
Association to promote fair housing
and provide fair housing services for
its residents. The City participates in
providing an annual direct allocation
to the San Joaquin Fair Housing
Association through the CDBG
program.

Increase Spanish language outreach
to this Hispanic population especial
in areas with concentrations of
Hispanic residents.

By July 2024, begin
promoting fair housing
services via social media
platforms
Citywide, targeted outreach in
lower resource, lower income
neighborhoods
Continue to support the San
Joaquin Fair Housing
Association, or other qualified
fair housing agencies, annually
with CDBG funds and refer
residents seeking fair housing
assistance on an ongoing basis.

Advertise the services provided
by the San Joaquin Fair
Housing Association (or other
qualified fair housing agencies)
on an ongoing basis in City
buildings and other public
buildings (such as public
libraries, community centers,
County Housing Authority
offices, and post offices, etc.).

Housing Resources
Education and Bilingual
Materials
The City will promote and advertise
available housing resources to
residents through a variety of
mediums. The City will continue to
promote homebuyer assistance
programs available through the City,
County, and State, such as the Tracy
Down Payment Assistance Down
Loan Program, the San Joaquin
County Home Rehabilitation
Program, the Mortgage Credit
Certificate (MCC) program and
California Housing Finance Agency’s
down payment assistance programs.

Annually Citywide Provide information on housing
resources to at least 200
households annually
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-46
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric • The City will provide information
on housing resources to at least 200
households annually, through the
following mediums:
• Providing information regarding
housing resources on the City
website.
• Pamphlets on the programs
available at City Hall and other
community locations such as the
Senior Center and Library.
• Advertising housing resources
through social media.
• Presence at a booth in
community events at least once
per year.
• Provision of materials in Spanish
and English.
• The City will continue to
encourage improved community
participation and representation in
all official city business, events, and
communications. The City will
contract with a translation service
as needed for meetings, putting a
standard note on all hearing notices
and communications in Spanish
indicating that interpretation and
translation services are available
upon request. The City will
contract with a translation service
for direct on the spot
translation/interpretation needs at
the front counter.
• The City will review demographic
changes in the City to determine if
translation should be provided for
new or additional languages every
four years. Translation to
additional languages added as
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-47 2023-2031 Housing Element
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric determined by demographic
analysis.

New Opportunities in High Resource Areas
Program 4 – Affordable
Housing Monitoring
The City of Tracy has seven publicly
assisted housing developments, with
a combined total of 659 units that are
set aside as affordable for lower
income households. Project-based
Section 8 contract for the 87-unit
Tracy Garden Apartments will expire
in July 2028. In 2031, the Low
Income Housing Tax Credits
(LIHTC) for the Chesapeake Bay
Apartments complex are set to
expire, which would impact 138 two-
bedroom units and 12 three-bedroom
affordable units. Therefore, 237
affordable units in Tracy are
considered at-risk of becoming
market rate during this 6th Housing
Element cycle.

The City will work to preserve the
long-term affordability of its
affordable housing inventory,
including 237 units at risk during this
planning cycle.

Annually monitor status of
affordable units by
maintaining contact with
property owners and updates
from HUD’s Multi-Family
Housing division.

Annually solicit interest and
participation of nonprofit
housing developers to acquire
and preserve housing to be
maintained as affordable
units.

Annually pursue funding
available from state and
federal programs to improve
and preserve existing
affordable housing
Citywide If a Notice of Intent is filed to
opt out of low income housing
use, work with property owners
to ensure compliance with
noticing requirements (three
years, one year, and six months
advance notices required).

Program 5 – Down payment
Assistance Loan Program
The Tracy Down Payment
Assistance (DAP) Loan Program
provides deferred down payment
assistance loans, for 20 percent of the
sales price up to $40,000 (whichever
is the lesser), to low income, first-
time homebuyers for the purchase of
a home in Tracy. The loans are
intended to bridge the “gap” between
the cost of a home and what a low
income household can afford. The
program is administered by the San
Provide down payment
assistance to ten qualified
lower income households (up
to 80 percent AMI) during
the Housing Element
planning period.

Citywide, targeted outreach in
lower resource, lower income
neighborhoods
Provide down payment
assistance to ten qualified lower
income households (up to 80
percent AMI) during the
Housing Element planning
period.

Disseminate information
through City website and social
media platforms.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-48
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric Joaquin County Neighborhood
Preservation Division.

Program 6 – Home buyer
and literacy training
Homebuyer and financial literacy
education represents a key step to
introducing households to the
challenges, responsibilities, and
benefits of homeownership. These
programs also serve as critical
components of asset-building, helping
families build wealth – savings and
equity – rather than living paycheck
to paycheck. In particular,
homebuyer education programs help
first-time buyers evaluate their
financial readiness, understand the
home buying process, explore
different financing options, access
homebuyer assistance programs,
resolve credit issues, and avoid
predatory lending practices. Other
asset-building education programs
address financial literacy more
broadly. Homebuyer and financial
literacy programs are best offered in
tandem with demand-side initiatives
such as a down payment assistance
program.

Ongoing Citywide, targeted outreach in
lower resource, lower income
neighborhoods
Require a “Certificate of
Completion” from a HUD-
approved homebuyer class in
order to participate in the DAP
Loan Program.

Partner with qualified local
non-profit agencies to offer
homebuyer education classes
and publicize the availability of
these classes to residents.

Program 7 – Affordable and
Workforce Housing
On March 2, 2021, the City Council
approved the scope of work for an
action plan to address affordable/
workforce housing. These include:
• Amend Zoning Ordinance to
permit high density housing by
right in certain commercial zones.
• Update the Zoning Ordinance with
the most recent State law changes
regarding ADUs.

Ongoing Higher opportunity, higher
income, single-family
neighborhoods
Continue to prioritize the
allocation of RGAs to
affordable housing projects
(particularly for those projects
that set aside units for
extremely low income
households and persons with
special needs, including those
with developmental disabilities,
and farmworkers).

Proactively encourage and
facilitate, on an ongoing basis,
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-49 2023-2031 Housing Element
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric • Rezone two sites, currently zoned
Industrial, to accommodate the
City’s RHNA.
• Increase maximum densities in
higher density residential zones.
• Remove minimum lot size in favor
of floor area ratio and/or units per
acre in residential zones.
• Increase minimum density in
medium density residential zones.
• Allow and encourage duplexes,
triplexes, and fourplexes in new
single-family home subdivisions.
• Create and apply an overlay zone
that allows clusters of tiny homes.
• Amend the City’s parking
ordinance to reduce the number of
off-street parking spaces required
for new multi-family housing
development projects.
• Develop objective design standards
for multi-family development.

the development of affordable
housing by non-profit
organizations for lower income
households, particularly those
with special needs including
large households, seniors,
extremely low-income (ELI)
households, and households
with persons who have
disabilities or developmental
disabilities, and farmworkers.

Continue to provide density
bonuses and other incentives on
an ongoing basis to developers
who provide affordable units,
such as technical assistance
related to City policies and
regulations, and pre-application
consultation with staff.

Program 13: Inclusionary
Housing
Explore the potential and set the
stage for a n inclusionary housing
program that includes an extremely
low income housing component by
the end of 2025.

By the end of 2025 Citywide Increase affordable housing by at least 10 percent of all new
housing.

Housing Mobility
Program 4 – Affordable
Housing Monitoring
The City of Tracy has seven publicly
assisted housing developments, with
a combined total of 659 units that are
set aside as affordable for lower
income households. Project-based
Section 8 contract for the 87-unit
Tracy Garden Apartments will expire
in July 2028. In 2031, the Low
Annually monitor status of
affordable units by
maintaining contact with
property owners and updates
from HUD’s Multi-Family
Housing division.

Citywide If a Notice of Intent is filed to
opt out of low income housing
use, work with property owners
to ensure compliance with
noticing requirements (three
years, one year, and six months
advance notices required).

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-50
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric Income Housing Tax Credits
(LIHTC) for the Chesapeake Bay
Apartments complex are set to
expire, which would impact 138 two-
bedroom units and 12 three-bedroom
affordable units. Therefore, 237
affordable units in Tracy are
considered at-risk of becoming
market rate during this 6th Housing
Element cycle.

The City will work to preserve the
long-term affordability of its
affordable housing inventory,
including 237 units at risk during this
planning cycle.

Annually solicit interest and
participation of nonprofit
housing developers to acquire
and preserve housing to be
maintained as affordable
units.

Annually pursue funding
available from state and
federal programs to improve
and preserve existing
affordable housing

Program 8 – Housing
Choice Voucher Program
The City of Tracy contracts with the
Housing Authority of the County of
San Joaquin (HACSJ) to manage the
Housing Choice Voucher (HCV)
program, which provides rent
subsidies in the form of housing
assistance payments to private
landlords on behalf of eligible
families. The HCV program, funded
by HUD, provides housing assistance
to extremely low and very low
income families, senior citizens, and
disabled or handicapped persons. Its
objective is to provide affordable,
decent and safe housing for eligible
families, while increasing a family’s
residential mobility and choice. The
Voucher Program also includes
programs such as Family Self-
Sufficiency and Welfare to Work.

These are designed to assist families
in becoming economically self-
sufficient.

By the end of 2024, create a
Fair Housing Factsheet to be
included in the ADU
application packet.

Annually contact the HACSJ
to obtain information on the
status of the HCV program
and other available resources
Citywide Disseminate information to the
public regarding the HCV
program and promote
participation by rental property
owners.

Continue to support HACSJ’s
petition for increased funding
from HUD.

Continue to work with HACSJ
to provide HCVs to Tracy
residents.

Continue to work with the
HACSJ to assist households
through the Family Self-
Sufficiency Program.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-51 2023-2031 Housing Element
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric Program 11 – Provision of
Adequate Sites and
Monitoring of No Net Loss
For the 6th cycle Housing Element,
the City has been assigned a Regional
Housing Needs Assessment (RHNA)
of 8,830 units, including:
• Very Low Income: 2,994 units
• Low Income: 1,879 units
• Moderate Income: 1,175 units
• Above Moderate: 2,782 units
In addition, the City has yet to
complete the rezoning of 31.7 acres
to meet the shortfall for the 5th cycle
Housing Element RHNA.

Combined, the City has a RHNA
obligation of 9,330 units.

The City is committed to ensuring
that adequate sites at appropriate
densities remain available during the
planning period, as required by law.

Specifically, the City already has
pending projects that account for
4,274 units (118 very low income, 23
low income, and 4,133 above
moderate income units). Projected
ADUs also account for 330 units.

Overall, the City has a remaining
RHNA obligation of 5,610 units
(2,777 very low income, 1757 low
income, and 1,076 moderate income
units).

Under existing zoning, the City has
realistic capacity for 1,650 lower
income units and 475 moderate
income units, creating a lower
income shortfall of 3,200 units and a
moderate-income shortfall of 670
units. The City’s overall strategy is to
accommodate the RHNA shortfall
through increasing the permitted
densities of existing multi-family
By December 31, 2024,
establish a formal procedure
to monitor no-net-loss of
capacity in meeting the City’s
RHNA and amend the
Zoning Ordinance to provide
for by-right approval for
projects that include 20
percent of the units for lower
income households.

By-right approval is available
to reuse sites effective
December 31, 2023
By-right approval is available
to rezone sites effective upon
rezoning
By December 31, 2026,
complete rezoning of the sites
identified in the sites
inventory for rezoning.

Denoted rezone areas Make the inventory of sites
available to interested
developers after adoption of the
Housing Element
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-52
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric zones, rezoning limited single-family
and commercial areas to multi-family
residential, and creating programs to
facilitate increased ADU production
in single-family zones. These
strategies will allow the City to fully
meet its housing needs for all income
levels during the 6th Cycle Housing
Element. Rezoning will meet all
requirements pursuant to
Government Code Section 65583.2,
subdivisions (h) and (i).

As required by law, the following
types of sites are subject to by-right
approval without discretionary
review if the project includes 20
percent of the units as housing
affordable to lower income
households:
• Reuse Sites: Vacant sites that were
used to meet the City’s 4th and 5th
cycles RHNA for lower income
units;
• Reuse Sites: Nonvacant sites that
were used to meet the City’s 5th
cycle RHNA for lower income
units; and
• Rezone Sites: Sites to be rezoned to
meet the 6th cycle RHNA for lower
income units.

To ensure that the City complies with
SB 166 (No Net Loss), the City will
monitor the consumption of
residential and mixed-use acreage to
ensure an adequate inventory is
available to meet the City’s RHNA
obligations. To ensure sufficient
residential capacity is maintained to
accommodate the RHNA, the City
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-53 2023-2031 Housing Element
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric will develop and implement a formal
ongoing (project-by-project)
evaluation procedure pursuant to
Government Code Section 65863.

Should an approval of development
result in a reduction in capacity
below the residential capacity needed
to accommodate the remaining need
for lower and moderate income
households, the City will identify and
if necessary, rezone sufficient sites to
accommodate the shortfall and
ensure “no net loss” in capacity to
accommodate the RHNA.

Program 12 – Accessory
Dwelling Units
The City last updated its ADU
ordinance in 2018. Since that time,
the law on ADUs has substantially
changed. The City will update its
ADU ordinance to comply with
California Government Code
Sections 65852.2 and 65852.22. The
City will facilitate the construction of
ADUs as an alternative source of
affordable housing.

By the end of 2024 Citywide; targeted outreach in
higher opportunity, higher
income, single-family
neighborhoods
Update City website to provide
a link to California Housing
Finance Agency (CalHFA)
ADU Grant Program.

Update the Zoning Code to
comply with State requirements
for ADUs.

Develop an information
sheet/brochure on ADUs,
including building requirements
and the permitting process, that
may be given to interested
property owners and kept at the
Planning/Development
Services Department. This
information should also be
included on the City website.

Develop and include a Fair
Housing Factsheet, especially
on Source of Income protection
(i.e., use of public subsidies
such as Housing Choice
Vouchers for housing
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-54
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric payments) in the ADU
application packet.

Develop incentives to
encourage development of
ADUs, including financial
assistance (from state programs
if available) to assist lower
income homeowners with
construction, pre-approved
plans, and dedicated counter
time for technical assistance,
among others.

Program 7 – Affordable and
Workforce Housing
On March 2, 2021, the City Council
approved a scope of work for an
action plan to address
affordable/workforce housing. These
include:
• Amend Zoning Ordinance to
permit high density housing by
right in certain commercial zones.
• Update the Zoning Ordinance with
the most recent State law changes
regarding ADUs.
• Rezone two sites, currently zoned
Industrial, to accommodate the
City’s RHNA.
• Increase maximum densities in
higher density residential zones.
• Remove minimum lot size in favor
of floor area ratio and/or units per
acre in residential zones.
• Increase minimum density in
medium density residential zones.
• Allow and encourage duplexes,
triplexes, and fourplexes in new
single-family home subdivisions.
• Create and apply an overlay zone
that allows clusters of tiny homes.

Ongoing Higher opportunity, higher
income, single-family
neighborhoods
Continue to prioritize the
allocation of RGAs to
affordable housing projects
(particularly for those projects
that set aside units for
extremely low income
households and persons with
special needs, including those
with developmental disabilities,
and farmworkers).

Proactively encourage and
facilitate, on an ongoing basis,
the development of affordable
housing by non-profit
organizations for lower income
households, particularly those
with special needs including
large households, seniors,
extremely low-income (ELI)
households, and households
with persons who have
disabilities or developmental
disabilities, and farmworkers.

Continue to provide density
bonuses and other incentives on
an ongoing basis to developers
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-55 2023-2031 Housing Element
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric • Amend the City’s parking
ordinance to reduce the number of
off-street parking spaces required
for new multi-family housing
development projects.
• Develop objective design standards
for multi-family development.•
• Consider inclusionary housing
program.
who provide affordable units,
such as technical assistance
related to City policies and
regulations, and pre-application
consultation with staff.

Place-Based Improvements
Place-Based Improvements The City is pursuing a number of investments, long-range planning
efforts, and improvements in various
geographic areas of the City with
greater need, specifically downtown
Tracy and central areas of the City.

These place-based improvements will
help improve quality of life and spur
economic investment in areas of the
City with greater need.

The City will continue to prioritize
the Capital Improvement Program
and implement broader planning
efforts, including seeking additional
funding. This will serve to continue
to improve communities through
neighborhood improvements such as
enhanced streetscapes, multi-modal
and active transportation, pedestrian
safety improvements, safe routes to
schools, community facilities, park
improvements, and other community
amenities.

Specific place-based efforts including
the following:
• City has multiple projects in its
Capital Improvements Plan
identified to improve mobility, and
As identified in CIP Schedule Citywide Completed Capital Improvement Projects
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-56
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric active transportation opportunities,
and park quality in the downtown
and central parts of the City. The
2023-2024 Capital Improvements
Plan includes investment of
$221,382,041 into 104 capital
improvement projects. Many of
these identified projects are in the
downtown and central areas of the
City, including:
• Grand Theater Repair. Exterior
repair for the historic Grand
Theater/Center of the Arts
building in downtown Tracy.
• Holly Drive Pedestrian &
Bikeway Improvements: The City
is investing 1.83 million dollars to
improve pedestrian and bikeway
infrastructure in the central area
of the City on Holly Drive
between 11th Street and Clover
Road, including installing a Class
3 bike route, Class 2 bicycle
lanes, sidewalk, pavement
patching, slurry seal, signage,
striping, and pavement markings.
• Tracy Boulevard Sidewalk. This
project will close the missing
sidewalk gap to the ACE Train
Station parking lot immediately
south of the project area.
($852,465)
• Valpico Roadway Improvements
- Tracy Blvd to MacArthur Drive.

This project will involve the
roadway widening of Valpico
Road from Tracy Blvd to
MacArthur Drive, with two lanes
in each direction, complete with
all necessary improvements like
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-57 2023-2031 Housing Element
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric curb, gutter, sidewalk, median,
irrigation facilities, landscaping,
drainage facilities, street lighting,
signage and striping. ($6,053,140)
• A.R. Glover Park Improvements:

Renovation of the playground, a
new picnic area, renovation of
the sport court, pathway lighting,
ADA barrier removal,
landscaping, and site furnishing
replacements ($725,000).
• Hoyt Park - Per Capita
Improvements. The City of Tracy
has the opportunity to
rehabilitate existing infrastructure
at Hoyt Park through the
Proposition 68, Per Capita
Program. ($348,835)
• Clyde Bland Park BMX Pump
Track. Construction of a new
½-acre BMX pump track (bike
park) in an existing City park.

The project would create a
looped asphalt track with a
sequence of rollers and berms for
bike riders. Associated
improvements would include:
earthwork, drainage,
accessibility, shaded seating as
well as related site furnishings,
and landscaping. ($999,416)
• Ten-Year Economic Development
Strategic Plan: In September 2023,
the City adopted a Ten-Year
Economic Development Strategic
Plan to help the City focus
implementation efforts on strategic
economic development priorities.

The strategic plan identified and
prioritized eight key areas as
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-58
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric opportunity sites. The top priority
identified is the downtown area,
the second is the west side, and the
third is commercial corridors in the
center of the City. The downtown
area and commercial corridors are
lower resource areas, compared to
the rest of the City. The strategic
plan helps support growth in these
areas and makes recommendations
to enhance economic resilience,
expand market access, encourage
investment, improve quality of life,
and improve infrastructure in these
areas.
• Downtown Transit-Oriented
Development (TOD) Specific Plan:

The Downtown Transit-Oriented
Development (TOD) Specific Plan
will identify the community’s
vision and establish goals,
objectives, and policies for future
development in Downtown Tracy.

In 2020, the City released the
Downtown TOD Study which
comprises the first phase of the
Downtown TOD Project, an effort
that will plan for the introduction
of Valley Link commuter rail
service in Downtown Tracy and
the surrounding areas. The study
also provides recommendations for
planning tools that the City can
prepare and adopt to implement
the concept, along with possible
grant funding sources to help fund
the preparation of the planning
tools, catalyze development, and
pay for infrastructure
improvements.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-59 2023-2031 Housing Element
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric The study highlights circulation
improvement recommendations for
11th Street, Central Avenue –
Downtown, 3rd Street, Central
Avenue, and Mt Diablo Avenue to
improve the following:
• Decrease crossing distances for
pedestrians,
• Improve safety for bicyclists, and
• Increase the visibility of both
pedestrians and bicyclists.

Displacement Prevention
Program 1 – Housing
Rehabilitation
The San Joaquin County Home
Rehabilitation Program assists
property owners in making
residential building improvements. It
offers low interest (two percent)
amortized and deferred payment
loans. The program is designed to
make needed renovations affordable
for low income homeowners (up to
80 percent AMI). San Joaquin
County will make rehabilitation loans
that, combined with the existing
mortgage, do not exceed 110% of the
value of the property.

Ongoing during the planning
period
Citywide, targeted outreach in
lower resource, lower income
neighborhoods
Assist 15 lower income
households in Tracy with the
rehabilitation of their homes
during the planning period.

Program 12 – Property
Acquisition and
Improvement
The City will continue to identify and
seek partnerships with organizations
and the County in order to acquire,
improve, and develop affordable
housing.
• To Annually identify and
seek partnerships with
organizations and the
County in order to acquire,
improve, and develop
affordable housing.
• Annually pursue funding
available at the state and
federal levels for affordable
housing development.

Citywide As funding permits, prioritize
funding assistance to affordable
housing projects that set aside
units for seniors, persons with
disabilities, and extremely low
income households.

Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-60
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric Program 11 – Provision of
Adequate Sites and
Monitoring of No Net Loss
For the 6th cycle Housing Element,
the City has been assigned a Regional
Housing Needs Assessment (RHNA)
of 8,830 units, including:
• Very Low Income: 2,994 units
• Low Income: 1,879 units
• Moderate Income: 1,175 units
• Above Moderate: 2,782 units
In addition, the City has yet to
complete the rezoning of 31.7 acres
to meet the shortfall for the 5th cycle
Housing Element RHNA.

Combined, the City has a RHNA
obligation of 9,330 units.

The City is committed to ensuring
that adequate sites at appropriate
densities remain available during the
planning period, as required by law.

Specifically, the City already has
pending projects that account for
4,274 units (118 very low income, 23
low income, and 4,133 above
moderate income units). Projected
ADUs also account for 330 units.

Overall, the City has a remaining
RHNA obligation of 5,610 units
(2,777 very low income, 1757 low
income, and 1,076 moderate income
units).

Under existing zoning, the City has
realistic capacity for 1,650 lower
income units and 475 moderate
income units, creating a lower
income shortfall of 3,200 units and a
moderate-income shortfall of 670
units. The City’s overall strategy is to
accommodate the RHNA shortfall
through increasing the permitted
densities of existing multi-family
By December 31, 2024,
establish a formal procedure
to monitor no-net-loss of
capacity in meeting the City’s
RHNA and amend the
Zoning Ordinance to provide
for by-right approval for
projects that include 20
percent of the units for lower
income households.

By-right approval is available
to reuse sites effective
December 31, 2023
By-right approval is available
to rezone sites effective upon
rezoning
• By December 31, 2026,
complete rezoning of the
sites identified in the sites
inventory for rezoning.

Denoted rezone areas Make the inventory of sites
available to interested
developers after adoption of the
Housing Element
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-61 2023-2031 Housing Element
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric zones, rezoning limited single-family
and commercial areas to multi-family
residential, and creating programs to
facilitate increased ADU production
in single-family zones. These
strategies will allow the City to fully
meet its housing needs for all income
levels during the 6th Cycle Housing
Element. Rezoning will meet all
requirements pursuant to
Government Code Section 65583.2,
subdivisions (h) and (i).

As required by law, the following
types of sites are subject to by-right
approval without discretionary
review if the project includes 20
percent of the units as housing
affordable to lower income
households:
• Reuse Sites: Vacant sites that were
used to meet the City’s 4th and 5th
cycles RHNA for lower income
units;
• Reuse Sites: Nonvacant sites that
were used to meet the City’s 5th
cycle RHNA for lower income
units; and
• Rezone Sites: Sites to be rezoned to
meet the 6th cycle RHNA for lower
income units.

To ensure that the City complies with
SB 166 (No Net Loss), the City will
monitor the consumption of
residential and mixed-use acreage to
ensure an adequate inventory is
available to meet the City’s RHNA
obligations. To ensure sufficient
residential capacity is maintained to
accommodate the RHNA, the City
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
2023-2031 Housing Element Appendix C-62
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric will develop and implement a formal
ongoing (project-by-project)
evaluation procedure pursuant to
Government Code Section 65863.

Should an approval of development
result in a reduction in capacity
below the residential capacity needed
to accommodate the remaining need
for lower and moderate income
households, the City will identify and
if necessary, rezone sufficient sites to
accommodate the shortfall and
ensure “no net loss” in capacity to
accommodate the RHNA.

Displacement Prevention The City will outreach to 100
households or landlords annually to
provide information and resources
regarding displacement prevention
and income protection through the
following efforts:
• By Q2 2025, coordinate with a
qualified fair housing service
provider to conduct a
meeting/workshop to inform
residents and landlords of sources
of income protection and state rent
control laws such as AB 1482. This
may be done in coordination with
the workshop the City’s fair
housing service provider.
• Coordinate outreach efforts to
inform landlords and tenants of
recent changes to state law that
prevent source of income
discrimination, including
allowance of housing choice
vouchers (HCVs) to establish a
renter’s financial eligibility.

By Q2 2025 Citywide 100 Households
Appendix C. Affirmatively Furthering Fair Housing
City of Tracy
Appendix C-63 2023-2031 Housing Element
Program Specific Commitment Timeline Geographic Targeting 2023 – 2031 Metric • Pursuant to SB 330, ensure a no net
loss of housing units by income
category when existing housing is
demolished so that, at a minimum,
an equivalent number of
replacement units are created at the
same level of affordability.
• Objective: No net loss of
affordable housing units

City of Tracy
Appendix D-1 2023-2031 Housing Element
Appendix D Sites Inventory
A. Sites Inventory Map

City of Tracy
Appendix D-2 2023-2031 Housing Element
B. Sites Inventory List
APN Address
Zip
Code
Size
(Acres)
General Plan
Designation
(Current)
Current
Zoning
Propose
d Zoning
Min
Density
Proposed
Max
Density
Proposed
Existing
Units
Very Low
Income
Low
Income
Moderate
Income
Total
Units
Existing
Use
City
Owne
d 5th Cycle
Infra-
structure
20925050 SW of intersection of Capitol Park
Dr and S Lammers Rd
95377 10.0 Office PUD HDR 20 35 0 184 114 0 298 Vacant No No No 20947002 W of intersection of W 11th St and
S Lammers Rd
95377 3.7 PUD HDR 20 35 0 68 43 0 111 Vacant No No No
20947003 W of intersection of W 11th St and
S Lammers Rd
95377 19.3 Office PUD HDR 20 35 0 0 0 575 575 Vacant No No No 20947004 W of intersection of W 11th St and
S Lammers Rd
95377 6.7 Office PUD HDR 20 35 0 122 76 0 198 Vacant No No No 20947005 NW of intersection of S Lammers
Rd and Capitol Park Rd
95377 2.4 PUD HDR 20 35 0 45 28 0 73 Vacant No No No
20947009 W of intersection of S Lammers Rd
and Capitol Park Rd
95377 6.1 Office PUD HDR 20 35 0 112 69 0 181 Vacant No No No 20947010 W of intersection of S Lammers Rd
and Capitol Park Rd
95377 7.4 Office PUD HDR 20 35 0 136 84 0 220 Vacant No No No 20947011 Intersection of S Lammers Rd and
Capitol Park Rd
95377 7.0 Office PUD HDR 20 35 0 129 80 0 209 Vacant No No No 21205035 3200 Naglee Rd 95304 4.7 Commercial I-205 HDR 20 35 0 86 53 0 139 Vacant No No Yes 21205036 N of intersection of W Valley Mall
and Naglee Rd
95304 2.2 Commercial I-205 HDR 20 35 0 40 25 0 65 Vacant No No Yes 21205037 Intersection of W Valley Mall and
Naglee Rd
95304 1.9 Commercial I-205 HDR 20 35 0 35 23 0 58 Vacant No No Yes 21205038 3100 N Corral Hollow Rd 95304 1.0 Commercial I-205 HDR 20 35 0 17 12 0 29 Vacant No No Yes 21205039 W of intersection of W Valley Mall
and Coral Hollow Rd
95304 0.9 Commercial I-205 HDR 20 35 0 17 11 0 28 Vacant No No Yes 21205040 Southside of W Valley Mall 95304 0.9 Commercial I-205 HDR 20 35 0 17 11 0 28 Vacant No No Yes 21205041 Intersection of Naglee Rd and W
Valley Mall
95304 1.0 Commercial I-205 HDR 20 35 0 17 12 0 29 Vacant No No Yes 21205042 S of intersection of Naglee Rd and
W Valley Mall
95304 2.1 Commercial I-205 HDR 20 35 0 38 24 0 62 Vacant No No Yes 21205052 3150 Naglee Rd 95304 4.9 Commercial I-205 HDR 20 35 0 90 56 0 146 Commercial/ Retail
No No Yes
21227020 Intersection of Power Rd and Auto
Plaza Rd
95304 2.0 Commercial PUD HDR 20 35 0 37 23 0 60 Vacant No No Yes 21229021 2855 W Grant Line Rd 95304 3.0 Commercial PUD HDR 20 35 0 54 34 0 88 Vacant No No Yes 21402005 2805 N Corral Hollow Rd 95377 1.0 Office GHC - 20 35 1 9 7 0 16 Residential No No Yes 21402006 2775 N Corral Hollow Rd 95377 1.0 Office GHC - 20 35 1 9 7 0 16 Residential No No Yes 21402007 2755 N Corral Hollow Rd 95377 1.0 Office GHC - 20 35 0 10 7 0 17 Vacant No No Yes 21402008 2705 N Corral Hollow Rd 95377 2.0 Office GHC - 20 35 0 21 14 0 35 Vacant No No Yes 21402012 2115 W Grant Line Rd 95377 0.7 Office GHC - 20 35 0 7 5 0 12 Water District
Property
No No Yes
City of Tracy
Appendix D-3 2023-2031 Housing Element
APN Address
Zip
Code
Size
(Acres)
General Plan
Designation
(Current)
Current
Zoning
Propose
d Zoning
Min
Density
Proposed
Max
Density
Proposed
Existing
Units
Very Low
Income
Low
Income
Moderate
Income
Total
Units
Existing
Use
City
Owne
d 5th Cycle
Infra-
structure
21402029 2185 W Grant Line Rd 95377 2.9 Office GHC - 20 35 0 31 20 0 51 Medical Offices
No No Yes
21402038 W of intersection of N Corral
Hollow Rd and W Grant Line Rd
95377 0.6 Office GHC - 20 35 0 6 4 0 10 Vacant No No Yes 21402040 Intersection of Joe Pombo Pkwy
and Grant Line Rd
95377 2.4 Commercial GHC - 20 35 0 25 16 0 41 Vacant No No Yes 21443001 348 W Clover Rd 95376 0.8 Residential
Medium
MDC HDR 20 35 0 14 10 0 24 Residential No No Yes
21443004 292 W Clover Rd 95376 1.9 Residential
Medium
MDC HDR 20 35 0 35 22 0 57 Residential No No Yes
21443023 188 W Clover Rd 95376 1.0 Residential
Medium
MDC HDR 20 35 1 16 11 0 27 Residential No No Yes
21443046 W of intersection of W Clover Rd
and Briar Ln
95376 0.8 Residential
Medium
MDC HDR 20 35 0 14 9 0 23 Vacant No No Yes
21443047 N of intersection of Dovenshire Dr
and Marie Ave
95376 1.1 Residential
Medium
MDC HDR 20 35 0 19 12 0 31 Vacant No No Yes
23202055 Intersection of Duncan Dr and
Enyeart Rd
95376 0.8 Commercial PUD HDR 20 35 0 14 9 0 23 Vacant No No Yes 23213010 Intersection of W Lowell Ave and
Lincoln Blvd
95376 3.8 Public
Facilities
LDR HDR 20 35 0 70 43 0 113 School
District
Property
No No Yes
23218022 1620 Behaven Ct 95376 0.8 Residential
Low
LDR HDR 20 35 0 14 9 0 23 Misc City
Property
Yes No Yes
23310314 429 W Eleventh St 95376 0.2 Commercial GHC - 20 35 0 0 0 3 3 Vacant No No Yes 23310315 435 W Eleventh St 95376 0.2 Commercial GHC - 20 35 0 0 0 3 3 Vacant No No Yes 23315218 1500 Holly Dr 95376 0.8 Residential
High
HDR - 20 35 0 13 9 0 22 School
District
Property
No No Yes
23321009 210 W Grant Line Rd 95376 1.0 Commercial GHC - 20 35 0 10 7 0 17 Vacant No No Yes 23336913 49 E Eleventh St 95376 0.1 Downtown CBD - 15 50 0 1 1 0 2 Commercial/ Retail
No No Yes
23336914 47 E Eleventh St 95376 0.1 Downtown CBD - 15 50 0 1 1 0 2 Commercial/ Retail
No No Yes
23336915 1121 El Portal St 95376 0.1 Downtown CBD - 15 50 0 1 1 0 2 Parking No No Yes 23336916 35 E Eleventh St 95376 0.1 Downtown CBD - 15 50 0 1 2 0 3 Commercial/ Retail
No No Yes
23336917 15 E Eleventh St 95376 0.1 Downtown CBD - 15 50 0 1 2 0 3 Commercial/ Retail
No No Yes
23336918 3 E Eleventh St 95376 0.1 Downtown CBD - 15 50 0 1 2 0 3 Commercial/ Retail
No No Yes
23336919 1120 Holly Dr 95376 0.2 Downtown CBD - 15 50 0 3 2 0 5 Parking No No Yes 23346004 400 E Grant Line Rd 95376 1.8 Commercial GHC - 20 35 0 19 12 0 31 Vacant No No Yes 23405003 1450 W Eleventh St 95376 0.2 Commercial GHC - 20 35 0 2 2 0 4 Vacant No No Yes 23405004 1450 W Eleventh St 95376 0.3 Commercial GHC - 20 35 0 3 2 0 5 Vacant No No Yes City of Tracy
Appendix D-4 2023-2031 Housing Element
APN Address
Zip
Code
Size
(Acres)
General Plan
Designation
(Current)
Current
Zoning
Propose
d Zoning
Min
Density
Proposed
Max
Density
Proposed
Existing
Units
Very Low
Income
Low
Income
Moderate
Income
Total
Units
Existing
Use
City
Owne
d 5th Cycle
Infra-
structure
23504012 430 W Eleventh St 95376 0.9 Commercial GHC - 20 35 0 9 6 0 15 Vacant No No Yes 23504054 1017 West St 95376 0.7 Residential
Medium
HDR - 20 35 4 9 7 0 16 Residential No No Yes
23505305 126 W Eleventh St 95376 0.1 Downtown CBD - 15 50 0 1 2 0 3 Commercial/ Retail
No No Yes
23505306 126 W Eleventh St 95376 0.2 Downtown CBD - 15 50 0 3 2 0 5 Commercial/ Retail
No No Yes
23505307 104 W Eleventh St 95376 0.4 Downtown CBD - 15 50 0 6 5 0 11 Commercial/ Retail
No No Yes
23506311 306 W Sixth St 95376 0.5 Downtown CBD - 15 50 0 7 5 0 12 Commercial/ Retail
No No Yes
23506312 160 W Sixth St 95376 0.5 Downtown CBD - 15 50 0 7 5 0 12 Residential No No Yes 23506316 Intersection of W 6th St and B St 95376 0.3 Downtown CBD - 15 50 0 4 3 0 7 Vacant No No Yes 23510013 310 W Mt Diablo Av 95376 0.6 Residential
Medium
MDR HDR 20 35 0 9 7 0 16 Residential No No Yes
23510015 302 W Mt Diablo Av 95376 1.0 Residential
Medium
MDR HDR 20 35 1 17 12 0 29 Residential No No Yes
23510018 220 W Mt Diablo Av 95376 1.0 Residential
Medium
MDR HDR 20 35 0 18 12 0 30 Residential No No Yes
23510024 130 W Mt Diablo Av 95376 1.0 Residential
Medium
MDR HDR 20 35 1 17 11 0 28 Residential No No Yes
23510042 90 W Mt Diablo Av 95376 1.5 Residential
Medium
MDR HDR 20 35 1 27 17 0 44 Residential No No Yes
23510071 280 W Mt Diablo Av 95376 1.3 Residential
Medium
MDR HDR 20 35 0 22 15 0 37 Residential No No Yes
23510072 Intersection of Mt Oso Ave and
Gianelli St
95376 0.7 Residential
Medium
MDR HDR 20 35 0 13 8 0 21 Residential No No Yes
23510073 250 W Mt Diablo Av 95376 2.0 Residential
Medium
MDR HDR 20 35 1 35 22 0 57 Residential No No Yes
23512001 205 E Third St 95376 2.9 Residential
Medium
MDR HDR 20 35 1 53 33 0 86 Residential No No Yes
23515002 780 E Sixth St 95376 11.9 Downtown M1 HDR 20 35 0 0 0 354 354 Vacant No Yes Yes 23512002 207 E Third St 95376 0.3 Residential
Medium
MDR HDR 20 35 0 5 4 0 9 Residential No No Yes
23514009 Intersection of E 3rd St and E Mt
Diablo Ave
95376 2.0 Commercial NS HDR 20 35 0 37 23 0 60 Vacant No No Yes 23514010 Intersection of E Mt Diablo Ave
and S MacArthur Dr
95376 1.2 Commercial NS HDR 20 35 0 22 14 0 36 Vacant No No Yes 23516206 31 E Seventh St 95376 0.2 Downtown CBD - 15 50 0 3 3 0 6 Residential No No Yes 23516207 23 E Seventh St 95376 0.1 Downtown CBD - 15 50 1 1 1 0 2 Residential No No Yes 23516208 7 E Seventh St 95376 0.2 Downtown CBD - 15 50 0 3 2 0 5 Vacant No No Yes 23516209 714 N Central Av 95376 0.2 Downtown CBD - 15 50 0 2 2 0 4 Commercial/ Retail
No No Yes
City of Tracy
Appendix D-5 2023-2031 Housing Element
APN Address
Zip
Code
Size
(Acres)
General Plan
Designation
(Current)
Current
Zoning
Propose
d Zoning
Min
Density
Proposed
Max
Density
Proposed
Existing
Units
Very Low
Income
Low
Income
Moderate
Income
Total
Units
Existing
Use
City
Owne
d 5th Cycle
Infra-
structure
23542005 550 W Fourth St 95376 0.3 Residential
Medium
MDR HDR 20 35 0 5 4 0 9 Church,
Synagogue
Or Temple
No No Yes
23542006 491 W Mt Diablo Av 95376 0.6 Residential
Medium
MDR HDR 20 35 0 10 7 0 17 Church,
Synagogue
Or Temple
No No Yes
23542007 524 W Fourth St 95376 0.5 Residential
Medium
MDR HDR 20 35 1 9 6 0 15 Residential No No Yes
23542008 489 W Mt Diablo Av 95376 0.9 Residential
Medium
MDR HDR 20 35 0 15 10 0 25 Church,
Synagogue
Or Temple
No No Yes
23542009 510 W Fourth St 95376 0.8 Residential
Medium
MDR HDR 20 35 1 13 8 0 21 Residential No No Yes
23542012 440 W Fourth St 95376 0.5 Residential
Medium
MDR HDR 20 35 0 9 7 0 16 Vacant No No Yes
23542013 E of intersection of Diablo Pl and
W Mt Diablo Ave
95376 0.5 Residential
Medium
MDR HDR 20 35 0 9 6 0 15 Vacant No No Yes
23543006 251 W Mt Diablo Av 95376 0.9 Residential
Medium
MDR HDR 20 35 1 15 10 0 25 Residential No No Yes
23543009 211 W Mt Diablo Av 95376 0.3 Residential
Medium
MDR HDR 20 35 0 4 4 0 8 Residential No No Yes
23543011 201 W Mt Diablo Av 95376 0.3 Residential
Medium
MDR HDR 20 35 0 4 4 0 8 Residential No No Yes
23543012 190 W South St 95376 0.2 Residential
Medium
MDR HDR 20 35 1 3 2 0 5 Residential No No Yes
23543013 10009 W Mt Diablo Av 95376 0.4 Residential
Medium
MDR HDR 20 35 0 6 5 0 11 Residential No No Yes
23543014 W of intersection of West St and W
Mt Diablo Ave
95376 0.5 Residential
Medium
MDR HDR 20 35 0 9 7 0 16 Residential No No Yes
23543016 W of intersection of C St and W Mt
Diablo Ave
95376 0.5 Residential
Medium
MDR HDR 20 35 0 8 6 0 14 Residential No No Yes
23543017 100 W South St 95376 0.6 Residential
Medium
MDR HDR 20 35 1 9 7 0 16 Residential No No Yes
23543018 90 W South St 95376 0.6 Residential
Medium
MDR HDR 20 35 1 9 7 0 16 Residential No No Yes
23543019 70 W South St 95376 1.1 Residential
Medium
MDR HDR 20 35 1 19 13 0 32 Residential No No Yes
23805002 1381 Berg Av 95377 2.6 Residential
Medium
MDR HDR 20 35 0 47 29 0 76 Residential No No Yes
23805003 2748 W Byron Rd 95377 1.0 Residential
Medium
MDR HDR 20 35 2 17 11 0 28 Residential No No Yes
23805008 2718 W Byron Rd 95377 1.7 Residential
Medium
MDR HDR 20 35 1 29 19 0 48 Residential No No Yes
23805014 2640 W Byron Rd 95377 1.1 Commercial GHC - 20 35 1 11 7 0 18 Mixed Use No No Yes 23805015 2600 W Byron Rd 95377 1.1 Commercial GHC HDR 20 35 2 17 12 0 29 Residential No No Yes City of Tracy
Appendix D-6 2023-2031 Housing Element
APN Address
Zip
Code
Size
(Acres)
General Plan
Designation
(Current)
Current
Zoning
Propose
d Zoning
Min
Density
Proposed
Max
Density
Proposed
Existing
Units
Very Low
Income
Low
Income
Moderate
Income
Total
Units
Existing
Use
City
Owne
d 5th Cycle
Infra-
structure
23805016 2590 W Byron Rd 95377 0.5 Residential
Medium
MDR HDR 20 35 2 8 5 0 13 Residential No No Yes
23805017 2568 W Byron Rd 95377 0.5 Residential
Medium
MDR HDR 20 35 2 8 5 0 13 Residential No No Yes
23805019 2520 W Byron Rd 95377 1.7 Commercial GHC - 20 35 0 18 12 0 30 Commercial/ Retail
No No Yes
23805022 2430 W Byron Rd 95377 1.3 Residential
Medium
MDR HDR 20 35 0 24 16 0 40 Residential No No Yes
23805023 1341 Berg Av 95377 1.1 Residential
Medium
MDR HDR 20 35 1 20 13 0 33 Residential No No Yes
23806005 1240 Berg Av 95377 0.5 Residential
Medium
MDR HDR 20 35 1 8 6 0 14 Residential No No Yes
23806009 1180 Berg Av 95377 1.0 Residential
Medium
MDR HDR 20 35 1 17 12 0 29 Residential No No Yes
23806013 1150 Berg Av 95377 1.2 Residential
Medium
MDR HDR 20 35 1 22 14 0 36 Residential No No Yes
23806018 2881 Fabian Rd 95377 1.1 Residential
Medium
MDR HDR 20 35 3 17 12 0 29 Residential No No Yes
23806021 1191 Berg Av 95377 0.8 Residential
Medium
MDR HDR 20 35 2 13 9 0 22 Residential No No Yes
23806024 1241 Berg Av 95377 0.8 Residential
Medium
MDR HDR 20 35 1 14 9 0 23 Residential No No Yes
23806029 1121 Berg Av 95377 0.8 Residential
Medium
MDR HDR 20 35 1 14 9 0 23 Residential No No Yes
23807004 3150 W Byron Rd 95377 0.6 Residential
Medium
MDR HDR 20 35 0 11 7 0 18 Residential No No Yes
23807005 3160 W Byron Rd 95377 0.5 Residential
Medium
MDR HDR 20 35 1 7 5 0 12 Residential No No Yes
23807006 3130 W Byron Rd 95377 1.1 Residential
Medium
MDR HDR 20 35 1 19 12 0 31 Residential No No Yes
23807007 3110 W Byron Rd 95377 1.0 Residential
Medium
MDR HDR 20 35 1 17 12 0 29 Residential No No Yes
23807008 3090 W Byron Rd 95377 1.1 Residential
Medium
MDR HDR 20 35 1 19 12 0 31 Residential No No Yes
23819007 SW of intersection of Grant Line
Rd and Joe Pombo Pkwy
95377 2.0 Commercial GHC - 20 35 1 20 13 0 33 Vacant No No Yes 23860007 3140 W Grant Line Rd 95304 3.0 Commercial PUD HDR 20 35 0 55 34 0 89 Residential No No Yes 24005037 Intersection of W Schulte Rd and
Mabel Josephine Dr
95377 10.0 Urban Reserve
7 PUD HDR 20 35 0 184 114 0 298 Vacant No No Yes
24014027 4720 S Lammers Rd 95377 5.0 Industrial M1-TH HDR 20 35 1 91 57 0 148 Agricultural No No Yes 24614001 26805 S Mac Arthur Dr 95376 10.0 Residential
High
M1 HDR 20 35 0 59 59 180 298 Residential No Yes Yes
24802017 Intersection of S Tracy Blvd and
Gandy Dancer Dr
95377 14.3 Office M1 New MU1 20 35 0 50 50 150 250 Residential No No Yes 24803005 4800 S Tracy Bl 95377 14.3 Office M1 New MU1 20 35 0 50 50 150 250 Residential No No Yes City of Tracy
Appendix D-7 2023-2031 Housing Element
APN Address
Zip
Code
Size
(Acres)
General Plan
Designation
(Current)
Current
Zoning
Propose
d Zoning
Min
Density
Proposed
Max
Density
Proposed
Existing
Units
Very Low
Income
Low
Income
Moderate
Income
Total
Units
Existing
Use
City
Owne
d 5th Cycle
Infra-
structure
24803010 4100 S Tracy Bl 95377 11.8 Office M1 New MU1 20 35 0 41 41 124 206 Residential No No Yes 24865041 546 Glenbrook Dr 95377 1.0 Residential
Low
PUD HDR 20 35 1 17 12 0 29 Residential No No Yes
24865042 545 Glenbrook Dr 95377 1.0 Residential
Low
PUD HDR 20 35 0 18 12 0 30 Residential No No Yes
25027002 2301 N Mac Arthur Dr 95376 1.3 Industrial GHC - 20 35 0 13 9 0 22 Parking No No Yes 25105008 27901 S Lammers Rd 95377 5.0 Residential
Medium
MDR-TH HDR 20 35 0 92 57 0 149 Agricultural No No No
25105009 28281 S Lammers Rd 95377 10.0 Residential
Medium
MDR-TH HDR 20 35 0 184 114 0 298 Vacant No No No
25106016 W of intersection of Pageant Ave
and Tracy Hills Dr
95377 9.7 Commercial HDR-TH - 20 35 0 179 110 0 289 Vacant No No Yes 25337001 W of intersection of Bardwell Ct
and Pageant Ave
95377 2.1 Residential
High
HDR-TH - 20 35 0 39 24 0 63 Vacant No No Yes
25338052 Intersection of S Corral Hollow Rd
and Tracy Hills Dr
95377 7.7 Commercial MUBP-
TH
- 20 35 0 83 51 0 134 Vacant No No Yes
25338053 N of intersection of S Corral
Hollow Rd and Tracy Hills Dr
95377 3.3 Commercial MUBP-
TH
- 20 35 0 35 23 0 58 Vacant No No Yes

Attachment B
City of Tracy
Special Concurrent City Council / Planning Commission Meeting Verbatim Transcription
March 22, 2023 – 5:00 p.m.

Mayor Pro Tem: We're going to go ahead and move on to our discussion item for the day, Item 5A. City Council and Planning Commission concurrently receive an informational presentation regarding the City's general plan Housing Element Update, the Builder’s Remedy as provided for in the State Housing Accountability Act and ongoing city initiatives to help encourage housing production. Mr. Bell, may I have staff report?

Alan Bell: Thank you, Mayor Pro Tem, very much. And members of the Council, Chair, members of the Commission, thank you all very much for coming tonight. We know you're all very busy and equally committed to the success of this city, so thank you for showing that, for being here on these many seemingly extra meetings that we're asking you to attend. Tonight's meeting, as you indicated, is regarding the City of Tracy's sixth cycle Housing Element Update. With us tonight are our consultants, Veronica Tam with Veronica Tam and Associates, and Dan Wery with Michael Baker International. We entered into contract with them in September 2022. VTA is a recognized consulting firm with a strong focus on housing and community development and substantial experience in assisting jurisdictions in preparing Housing Element Updates. For the fifth Housing Element cycle, VTA successfully completed close to 60 Housing Elements for jurisdictions throughout the state, including the City of Tracy's. For the current sixth cycle, Veronica Tam and Associates has worked on more than 30 Housing Elements in Southern California's San Diego Association of Governments and Southern California's Association of Governments regions. Given the complexity of recent changes in state laws and the tight timeline for this sixth cycle, Veronica Tam and Associates has partnered with MBA, Michael Baker International, to provide technical analysis and CEQA clearance with us for the project. So MBI in this case is a sub to Veronica Tam with this contract. So, over the past six months we've worked closely with Veronica, Dan, and their teams to get us to this point where we can have this public kick-off for our Housing Element Update. So, at this point I wish to turn over the microphone to Veronica Tam with Veronica Tam and Associates.

Veronica Tam (VT): Thank you for having me back. It's one of your residents reminded me that I've been working for the City of Tracy for about 20 years now, working on the Housing Element. So tonight, we want to kind of give you an update of where we are in terms of the Housing Element Update.

We've been working really hard in the last few months in order to get to this point. So tonight, what I do want to do is talk about the Housing Element requirements, particularly emphasizing on how different this Housing Element Update is compared to the fifth cycle Housing Element, or if you have been involved in even the fourth cycle Housing Element, how different that is. Then what we want to also focus on tonight's discussion is about how are we going to, what is our strategy for meeting the Regional Housing Needs Allocation (RHNA) that is one of the most critical components of the Housing Element.

City of Tracy – Special Concurrent City Council / Planning Commission Meeting Verbatim Transcription
March 22, 2023 – 5:00 p.m.