Transcript A HOUSING ELEMENT IS: - Monterey County, California

MONTERY COUNTY
2005 GENERAL PLAN UPDATE
STUDY SESSION
HOUSING
June 16, 2005
RECOMMENDATIONS
1.
Retain the current Inclusionary Housing Ordinance requirement
that 20% of new residential lots or units be deed restricted and
that of the 20%, (6% very low income, 6% low income and 8%
moderate income).
2.
Require a mandatory 10% contribution for Workforce Level (up
to 180% of median income) housing for projects of 10 or more
units/lots to be developed under a separate “Workforce Housing
Ordinance” which would allow the restrictions to include equitysharing provisions.
3.
Retain the existing policy contained in the Housing Element that
encourages employers to voluntarily assist in the production of
employee housing (Policy H-5.3).
4.
OPTION: Although not recommended at this time, the Board
may also wish to consider adding a program to the Housing
Element in the future requiring the County to develop a new
employee housing program that includes a contribution from
new job creating development to a County-wide housing trust.
RECOMMENDATIONS
5.
Remove the Affordable Housing Overlay program that is
currently contained in the Housing Element (Policy H-3.8)
since the same objectives can be achieved by implementing the
Affordable Housing Developer Incentive Program, which will
incorporate the current State Density Bonus provisions,
without creating a new governmental program.
6.
Do not include a housing allocation system in the Housing
Element as it may affect certification of the Element by the
State and could limit overall affordable housing production.
7.
Once the GPU is adopted, amend the Housing Element to be
consistent with the growth pattern established in the Land Use
Element.
RECOMMENDATIONS
8.
Retain the existing policy language in the adopted Housing
Element to require that public services and infrastructure be
provided concurrently with housing production.
9.
Retain the existing policy language in the adopted Housing
Element which states that the County shall allow secondary
units in conformance with State law and consistent with
Community and Specific Plans to provide additional housing
opportunities.
MONTEREY COUNTY’S
HOUSING ELEMENT

Monterey County’s Housing Element
was adopted in 2003.
It
contains policies and programs
necessary to ensure that the Regional
Housing Needs Allocation can be
accommodated by 2008.
SUMMARY OF PRIMARY
PROGRAMS CONTAINED IN THE
ADOPTED HOUSING ELEMENT
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Mandatory Inclusionary Program
Voluntary Density Bonus Ordinance Provisions
Voluntary Developer Incentive Program
Plan new communities and intensify existing community areas
Provide infrastructure to new and intensified communities
Housing Rehabilitation Program
Assistance to non-profit housing developers
Replacement housing
Zoning code revisions and Code enforcement
Voluntary employer assisted housing
Special needs housing assistance
Down Payment Assistance Program
Housing Opportunity Center
Expedited Development Review
Second Unit Program
Housing Trust Fund
City/County Coordination of Housing Production
HOUSING PRODUCTION
SUMMARY

Between 1989 and 2000 a total of
approximately 6,500 new residential units
were constructed in the County.
AFFORDABILITY GAP

In 1999 23% of Monterey County
residents could afford to purchase the
median priced single family home.

In 2004 the median price was $565,000
and only 15% of the residents could
afford a median price home.

In April 2005 the median price
increased to $626,000 with no change in
the County’s median income of $60,800
for a family of four from 2004.
REGIONAL HOUSING NEEDS
Monterey County’s Regional Housing Needs
Allocation (RHNA) for 2002-2008 is a total of
2,511 units as follows:
Very Low Income:
 Low Income:
 Moderate Income:
 Above Moderate Income:
 Total

821
608
937
145
2,511
2005 AFFORDABLE HOUSING
Income Level
3 bedroom
Home Price
Very low (50% )
$104,211
Low (80%)
$145,861
Moderate
(120%)
$267,554
Workforce I
(140%)
$340,341
Workforce II
(180%)
$437,725
The Housing Element is
Required To
Identify sufficient land, zoned at
appropriate densities to achieve the
allocation.
 The existing Housing Element was
required to identify three times the
amount of land required to meet the
allocation since residential zoning was
not yet in place.

DENSITY TARGETS
Income Level
Density Range
Very low and Low
15 – 30 du/ac
Moderate
10 – 15 du/ac
Above Moderate
1-9 du/ac
QUESTION OF BALLANCE

Need enough market rate
housing to support affordable
units
 Return to Development
 Carry Infrastructure
Requirements
WHAT IS THE PRIMARY GOAL
OF THE STRATEGY?

To get the right amount of housing
built of the right type in the right
locations at the right price
affordable to the residents and
workers of the County.
WHAT CAN THE COUNTY DO TO
ACHIEVE THIS GOAL?

Designate enough land in the Land Use Element for
the right kind of housing in the right locations.

Encourage partnerships with private sector
developers to build sustainable housing affordable to
Monterey County residents and workers.

Encourage special needs housing that the private
sector cannot build.

Effectively use government subsidy.

Undertake programs that can be feasibly
implemented given County resources.
CONSIDERATIONS
The existing Housing Element
includes the following:

Housing Target Areas: Fort Ord, Rancho San Juan,
Pine Canyon, Castroville, Pajaro, Boronda and San
Lucas

How would the County potentially compensate
for reducing the number of units projected in
Rancho San Juan? (3,585 Dwelling Units)

Board previously provided direction to include
additional Rural Centers as housing target areas.
Affordable Housing
Contribution
1. Retain the current Inclusionary Housing
Ordinance requirement that 20% of new
residential lots or units be deed restricted and
that of the 20%, (6% very low income, 6%
low income and 8% moderate income).
2. Require a mandatory 10% contribution for
Workforce Level (up to 180% of median
income) housing for projects of 10 or more
units/lots to be developed under a separate
“Workforce Housing Ordinance” which would
allow the restrictions to include equity-sharing
provisions.
Jobs/Housing Requirements
3. Retain the existing policy contained in the
Housing Element that encourages
employers to voluntarily assist in the
production of employee housing (Policy
H-5.3).
4. OPTION: Although not recommended at
this time, the Board may also wish to
consider adding a program to the Housing
Element in the future requiring the County
to develop a new employee housing
program that includes a contribution from
new job creating development to a
County-wide housing trust.
Affordable Housing
Overlay District
5. Remove the Affordable Housing Overlay
program that is currently contained in the
Housing Element (Policy H-3.8) since the same
objectives can be achieved by implementing the
Affordable Housing Developer Incentive
Program, which will incorporate the current
State Density Bonus provisions, without
creating a new governmental program.
GPU-3

Voluntary program for projects with a minimum of 10% very low,
20% low, 40% moderate, 10% WF1, 20% WF2.

Applies to Pajaro, Las Lomas, Aromas, Prunedale, Moss Landing,
Castroville, RSJ, Boronada, Fort Ord, River Road, Mouth of
Carmel Valley, Hwy 68 Corridor, Chualar, San Jucas, San Ardo,
Pine Canyon, Bradley, Lockwood, and Pleyto in any zoning
district.

Applies to properties/projects meeting specific criteria: including
not in environmentally sensitive areas and has public services.

Densities between 10 and 30 du/ac with an average of 15 du/ac,

Incentives provided including density bonus, permit assisting,
fee waiver, and modified development standard.
Refinement Group

Voluntary program for projects with a minimum of 10% very low,
15% low, 15% moderate, 20% WF1, 20% WF2.

Applies to the Greater Monterey peninsula and Carmel Valley
Planning Areas, Big Sur, the community areas and rural centers in
any zoning district.

Applies to development for which there are no significant
unavoidable impacts or for which overriding considerations cannot
be made.

Densities between 6 and 30 du/ac with an average of 10 du/ac.

Incentives, including streamlined permitting processing and
priority allocation for water and sewer, and modified development
standards.

Projects may proceed in advance of the adoption of community
plans and/or infrastructure/financing plans
Developer Incentive Program

Include the State Density Bonus provision – if a project meets the
threshold for affordability up to 35% density bonus.

The program would be applied to any residentially zoned property
anywhere in the county with the bonus applied to the base zoning
density.

Incentives including relaxation of development codes and allowing
a project to proceed in advance of the adoption of community
plans or infrastructure plans.

The bonus and/or incentives may be denied if there is a specific
adverse environmental impact for which there is no feasible
method to mitigate or avoid the impact.

The County can increase the density bonus over the 35%
maximum as the amount and levels of affordability over the State
thresholds.
What will the overlay strategy
contained in each of the draft
plans accomplish?
A.
GPU-3:
Encourage high density (average 15 du/ac) affordable projects on sites
that meet criteria (environmentally sensitivity and services).
B.
Refinement Plan:
Encourage medium density (average 10 du/ac) affordable projects on
land with any land use designation unless overriding consideration
cannot be made.
C.
Developer Incentive Program incorporating State Density Bonus
Requirements:
Encourage affordable hosing on residentially designated sites unless
significant environmental impacts cannot be feasibly mitigated.
Housing Unit Allocation System
6. Do not include a housing allocation
system in the Housing Element as it
may affect certification of the Element
by the State and could limit overall
affordable housing production.
TARGET LOCATIONS FOR HOUSING
PRODUCTION
7. Once the GPU is adopted, amend the
Housing Element to be consistent with the
growth pattern established in the Land Use
Element.
REQUIRING INFRASTRUCTURE TO
BE IN PLACE CONCURRENT WITH
HOUSING PRODUCTION
8. Retain the existing policy language in
the adopted Housing Element to require
that public services and infrastructure
be provided concurrently with housing
production.
INFRASTRUCTURE OPTIONS
1. No Relaxation of Infrastructure
Requirements
2. Case by Case waiver as long as not
hazard
3. Waive Infrastructure Requirements for
Affordable Units
PROVISIONS FOR
SECONDARY UNITS
9. Retain the existing policy language in the
adopted Housing Element which states that
the County shall allow secondary units in
conformance with State law and consistent
with Community and Specific Plans to
provide additional housing opportunities.
MONTERY COUNTY
2005 GENERAL PLAN UPDATE
STUDY SESSION
HOUSING, ECONOMIC
DEVELOPMENT
June 16, 2005
2005 Affordable Housing
Income Limits
Income
Level
2 person
household
3 person
household
4 person
household
5 person
household
Very low
(50% )
$24,300
$27,350
$30,400
$32,850
Low (80%)
$38,900
$43,800
$48,650
$52,550
Moderate
(120%)
$58,350
$65,650
$72,950
$77,600
Workforce I
(140%)
$68,100
$76,600
$85,100
$91,950
Workforce II $87,550
(180%)
$98,500
$109,450
$118,200
2005 Affordable Housing
Sales Prices
Income Level
2 bedroom
3 bedroom
4 bedroom
Very low
$93,754
$104,211
$112,609
Low
$131,292
$145,861
$157,515
Moderate
$240,759
$267,554
$288,895
Workforce I
$306,349
$340,341
$367,735
Workforce II
$393,933
$437,725
$472,721
2005 Affordable Housing Rents
Income Level
2 bedroom
3 bedroom
4 bedroom
Very low
$684
$760
$821
Low
$821
$912
$985
Moderate
$1,095
$1,216
$1,314
Workforce I
$1,915
$2,127
$2,299
Workforce II
$2,463
$2,736
$2,955
DENSITY BONUS PROVISIONS
The new State Density Bonus provisions (SB 1818)
that went into effect on January 1, 2005 require that
local land use agencies provide density bonuses and
other incentives to qualified projects.
Minimum Project Qualifications:
• 10% lower income
• 5% very low income
• Qualified senior housing
• 10% in a condo or PUD for moderate income
DENSITY BONUS PROVISIONS
Density Bonus:


Increases in densities over the base land use
regulations (without a GPA or Rezoning) must be
provided to qualified projects if requested.
The increases must range from a minimum of 20% to
35%, increasing as the levels of affordability increase
DENSITY BONUS PROVISIONS
Incentives:



As the affordability levels deepen more
incentives must be provided.
The incentives may include reductions in
development requirements or other concessions
that would reduce costs to the developer,
including waivers of fees and infrastructure
requirements.
A requested concession can only be denied if it
has a specific adverse impact that cannot be
feasibly mitigated.
STATE - SECOND UNIT
PROVISIONS
New State provisions related to allowing
second units (SB 1866) went into effect on
January 1, 2003.
 Local land use agencies must either adopt
an ordinance or apply minimum State
requirements to allow second units as a
ministerial act.

STATE - SECOND UNIT
PROVISIONS
A local ordinance may specify
criteria/requirements such as:
• Designate areas where 2nd units are permitted
• Designated minimum requirements such as
adequacy of water and wastewater systems
• Address traffic impacts
• Impose site development standards including
conformance with base density