Community Housing Committee

CITY OF HEALDSBURG COMMUNITY HOUSING COMMITTEE MEETING AGENDA City Hall Council Chamber Date: October 26, 2015 401 Grove Street, Healdsburg, CA 95448 Time: 6:00 P.M. Phone: 431-3317 Date Posted: October 23, 2015 1. Call Meeting to Order 2. Roll Call 3. Approval of October 26, 2015 Agenda 4. Approval of September 14, 2015 Meeting Minutes 5. Acceptance of Communications and Correspondence 6. PUBLIC COMMENTS ON NON-AGENDA MATTERS This time is set aside to receive comments from the public regarding matters of general interest not on the agenda, but related to the Community Housing Committee. Pursuant to the Brown Act, however, the Committee cannot consider any issues or take action on any requests during this comment period. Speakers are encouraged to limit their comments to 3 minutes maximum so that all speakers have an opportunity to address the Committee. Members of the audience desiring to address the Committee please walk to the public speaker podium and, after receiving recognition from the Chair, please state your name and make your comments. 7. NEW BUSINESS A. Receive a presentation on Housing Needs Assessment presented by Economic Planning Systems 8. WORK SESSION TOPICS • Recap October 10, 2015 Public Information event • Discussion on Housing Needs Assessment findings • Ballot Approach and Housing Action Plan Role 9. IDENTIFY NEXT STEPS 10. ADJOURNMENT SB 343 - DOCUMENTS RELATED TO OPEN SESSION AGENDAS: Any writings or documents provided to a majority of the Community Housing Committee regarding any item on this agenda after the posting of this agenda and not otherwise exempt from disclosure, will be made available for public review in the City Clerk’s Office located at City Hall, 401 Grove Street, Healdsburg, during normal business hours. If supplemental materials are made available to the members of the Community Housing Committee at the meeting, a copy will be available for public review at the City Hall Council Chamber, 401 Grove Street, Healdsburg, CA 95448. These writings will be made available in appropriate alternative formats upon request by a person with a disability, as required by the Americans with Disabilities Act. DISABLED ACCOMMODATIONS: The City of Healdsburg will make reasonable accommodations for persons having special needs due to disabilities. Please contact Maria Curiel, City Clerk, at Healdsburg City Hall, 401 Grove Street, Healdsburg, California, 431-3317, at least 72 hours prior to the meeting, to ensure the necessary accommodations are made.  Community Housing Committee Meeting Minutes September 14, 2015 6:00 pm 1. Meeting Called to Order at 6:03 P.M. 2. Roll Call Committee members present: Eric Ziedrich (Chair), Richard Butler, Joe Lickey, Nancy Madarus, Shaun McCaffery, and Jon Worden Committee members absent: Bruce Abramson, Richard Burg, Jeff Civian Staff: City Manager David Mickaelian, Planning & Building Department Director Barbara Nelson and Administrative Analyst Debra Nelson 3. Agenda The September 14, 2015 agenda was approved 6-0 by the Committee members present. 4. Approval of Minutes The August 20, 2015 Community Housing Committee Minutes were approved 6-0 by the Committee members present with minor grammatical changes. 5. PUBLIC COMMENTS ON NON-AGENDA MATTERS No Public Comment 6. WORK SESSION TOPICS A. Jim Heid, Urban Green presented an overview of preferred approaches from August 29, 2015 Work Session to the Committee. B. The Committee explored elements of proposed revisions to the GMO. The Chair invited comments from members of the public regarding this item Mike Miller – Inclusionary ho 10. ADJOURNMENT There being no other business to discuss, Chair Ziedrich adjourned the meeting at 8:06 P.M. The next regular meeting is scheduled for September 28, 2015, at 6:00 P.M. APPROVED: ATTEST: ___________________________ _______________________________ Eric Ziedrich, Chair Debra Nelson, Secretary Page 2 of 1 REFINING  HEALDSBURG'S  GROWTH  MANAGEMENT  ORDINANCE BALLOT  INITIATIVE  CONSTRUCT  and  SUPPORTING  COMPONENTS  OF  HOUSING  ACTION  PLAN Updated:  October  23 CONCEPT  DRAFT  FOR  10.26  COMMUNITY  HOUSING  COMMITTEE  DISCUSSION  PURPOSES  ONLY This  proposal  breaks  issues  discussed  to  date  into  two  groups: •  Recommended  additions  to  the  existing  GMO  that  will  be  the  basis  for  the  Ballot  Initiative.    This  creates  the  'enabling  framework'  to   modify  the  GMO  to  be  adaptable  over  time  to  meet  varying  community  priorities. •  The  administrative  tools,  mechanics  and  role  of  the  Housing  Action  Plan  (HAP).    The  HAP  will  establish  the  detailed  requriements,   priorities  and  processes  enabled  by  an  updated  GMO. Other  Supporting  Actions  (not  tied  to  a  GMO  ballot  initiative)  are  outlined  because  they  expand  the  portfolio  of  solutions  and  draw  on   prior  Committee  conversations.     BALLOT  COMPONENT 2015-­‐2023  HOUSING  ACTION  PLAN OTHER  SUPPORTING  ACTIONS All  elements  of  the  existing  GMO  stay  the  same,  with  five  refinements: The  Housing  Action  Plan  will    become  THE  guiding  document  for  setting   Revise  the  inclusionary  housing  ordinance  to   Healdsburg’s  Housing  Vision,  while  linking  together  policies  of  the  Housing  Element,   increase  the  percentage  of  deed-­‐restricted  housing   required  actions  and  funding  for  meeting  community  priorities,  through  better   that  must  be  built/  funded  in  conjunction  with   leverage  of  the  Growth  Management  Ordinance  and  Inclusionary  Housing   market  rate  units,  as  a  way  to  increase  affordable   provisions.     housing  stock. To  accomplish  these  outcomes,  the    Housing  Action  plan  will    be  adopted  by  City   Council  by  formal  ordinance  as  the  guiding  document  for  housing  related  actions   during  the  8  year  Housing  Cycle,  and  must 1 Require  a  review  of  the  impact  and  benefits  of  the  GMO  every  eight  years  to   Establish  measurable  goals  and  actions  for  Housing  within  Healdsburg,  over  an  eight   Revise  the  definition  of  Affordable  Housing  to   confirm  its  contribution  and  ability  meet  community  housing  goals,  as   year  cycle,  concurrent  with  the  Housing  Element  Cycle.    Key  Performance  Indicators   include  deed-­‐restricted  housing  that  meets   defined  through  the  Housing  Action  Plan. (KPI's)  for  the  Housing  Report  Card  shall  be: Workforce  Housing  income  levels •  City  median  age  (with  objective  to  decrease) The  review  will  be  completed  concurrent  with  the  General  Plan  Housing   •  Number  of  affordable  housing  units  as  %  of  total  community  stock  (to  increase) Element  Update.     •  School  enrollment  (to  increase) •  Median  home  price  (to  decrease) (Note:  The  Inaugural  Housing  Action  Plan  will  be  developed  and  adopted  in   •  %  of  people  who  both  live  and  work  in  town 2016,  and  to  be  udpated  in  2022). 2 Be  reviewed  and  updated  every  eight  years,  beginning  15  months  prior  to  the  target   Increase  funding  mechanisms  for  community   The  number  of  allocations  to  be  provided  annually,  will  be  reset  at  the  start   date  for  adoption  of  the  City’s  Housing  Element.  The  review  and  update  process  will: developed  affordable  housing,  including  but  not   of  the  Housing  Cycle  as  1%  of  total  existing  stock,  as  documented  by  the   •  require  at  least  three  community  workshops  to  gather  public  input  on  priorities.     limited  to  Real  Estate  Transfer  Fees,  TOT  allocation   HEU  research.    (inclusive  of,  or  exclusive  of  deed  restricted  units?) Workshops  can  be  held  concurrent  with  HEU  update  workshops over  and  above  existing  committed  portion,  other   •  be  advised  by  a  Citizen’s  Housing  Committee  that  will  be  comprised  of  no  more   tourism  and  wine  industry  fees (Note:  For  the  2016-­‐2022  Cycle,  this  will  equate  to  45/49  allocations  per   than  5  members,  who  are  all  currently  living  full  time  in  Healdsburg  and   year).  -­‐  2  of  which  are  renters  -­‐  2  of  which  are  homeowners 3 Unused  allocations,  A,  B  and  C  type,  will  remain  active  for  the  life  of  the  full    -­‐  1  each  representing    the  four  age  groups  that  define  the  housing  market  –   Housing  Cycle.     Millennial,  Gen  X,  Boomer  and  Senior  -­‐  1  of  which  represents  a  member  of  the  community  meeting  defined  Affordable   (Note,  this  will  replace  the  3  year  'extinction'  of  allocations  with  an  8  year   Housing  criteria window) 4 A  third  category  of  Housing  allocations  (C  units)  will  be  created  and  set  aside   for  community  established  Housing  Priorities  as  defined  through  the   Housing  Action  Plan. 'C'  Units  will  be  equal  to  the  difference  between  the  initial  GMO's  30  unit   allocation  and  the  re-­‐set  number. (Note:  For  the  2016-­‐2022  Cycle,  this  equates  to  15/19  C  Units  per  year  and   based  on  recent  discussions  priorities  could  be  made  for  Multi-­‐family   housing  and  deed  restricted  workforce  housing  as  two  examples). 5a An  initial  infusion  of  150  C  unit  allocations,  will  be  created  in  2016,  and  expire   Establish  the  Housing  Priorities  for  the  coming  Housing  Cycle.    The  priorities   in  2022  if  not  used.     determine  how  C  units  are  to  be  allocated,  on  a  discretionary  basis,  to  incentivize   the  kinds  of  development/  and  or  products  (type  and  price)  that  the  community  has   OR deemed  important  for  the  coming  cycle. 5b Redefine  Affordable  Housing  for  the  purposes  of  the  Growth  Management   Ordinance  to  include  'Workforce  Housing'  as  defined  through  the  Housing   Action  Plan  Analysis.     Note:  This  will  effectively  exempt  new  housing  priced  and  deed  restricted  for   those  making  between  120%  -­‐200%  of  AMI  Housing Needs Assessment Executive Summary Prepared for City of Healdsburg Prepared by Economic & Planning Systems, Inc. October 22, 2015 Oakland Sacramento Economic & Planning Systems, Inc. Denver One Kaiser Plaza, Suite 1410, Oakland, CA 94612 Los Angeles 510.841.9190 • www.epsys.com Definition of Housing Needs Assessment • A “housing needs assessment” estimates how much housing of what type and at what price is needed • A needs assessment is based upon demographic data, employment trends, and policy considerations • A needs assessment provides a quantitative basis for considering the following: – Adequacy of the City’s planned housing capacity, vacant sites and respective development regulations – Need for changes to City policy (e.g., zoning regulations and the Growth Management Ordinance) – Potential costs and strategies for meeting affordable housing needs Economic & Planning Systems, Inc. 1 Definition of Housing Needs Assessment • Housing need can be defined in various ways: – Policy-based targets related to percentage of households living and working in the City – Local household formation forecast • Employment growth-based forecast (job growth and household formation) – Existing households “overpaying” for housing – Differs from the State-mandated “Regional Housing Needs Allocation” which allocates regional housing needs to local jurisdictions without considering market demand, local capacity constraints, or economic conditions • Current Approach: policy-based targets + job growth forecast Economic & Planning Systems, Inc. 2  Housing Need in Healdsburg Economic & Planning Systems, Inc. 3  Current and Projected Housing Need Current Future Total Implication Employees Additional Target % of Employees Living in Town Housing Units Employees Living in Town (640 - 1,000 new Total New Required Units Required Able to Live in (based on 6,509 Net jobs in next 8 Employees Living (1.3 workers per per Year Town existing jobs) Increase + years) = in Town household) (2015 - 2023) 33% 2,162 -- 213 to 332 213 to 332 164 to 256 20 to 32 35% 2,278 116 224 to 350 340 to 466 262 to 359 33 to 45 40% 2,604 442 256 to 400 698 to 842 537 to 647 67 to 81 45% 2,929 767 288 to 450 1,055 to 1,217 812 to 936 101 to 117 50% 3,255 1,093 320 to 500 1,413 to 1,593 1,087 to 1,225 136 to 153 Note: 33% of jobs in Healdsburg are filled currently by Healdsburg residents, thus representing the status quo. Economic & Planning Systems, Inc. 4  Housing Need by Income Category Number of new housing units needed each year to meet the policy target. Total Income Distribution GMO Implications Target % of Units Above Employees Required per Extremely Very Low Low Moderate Moderate Able to Live in Year Low 31% 51% 80% to 120% to Market Exempt from Limited by Town (2015 - 2023) < 30% AMI to 50% AMI to 79% AMI 119% AMI 200% AMI >200% AMI GMO GMO 33% 20 to 32 2 to 4 3 to 5 3 to 4 4 to 6 5 to 8 4 to 6 12 to 18 9 to 14 35% 33 to 45 4 to 5 5 to 6 4 to 6 6 to 8 8 to 11 7 to 9 18 to 25 14 to 20 40% 67 to 81 8 to 9 10 to 12 9 to 11 12 to 14 16 to 19 13 to 16 38 to 46 29 to 35 45% 101 to 117 12 to 13 15 to 17 14 to 16 17 to 20 24 to 28 20 to 24 57 to 66 44 to 51 50% 136 to 153 15 to 17 19 to 22 18 to 21 23 to 26 32 to 36 27 to 31 77 to 86 59 to 67 Economic & Planning Systems, Inc. 5  Affordable Price Points Income Category and Definition Annual Need Max. Affordable For-Sale Monthly Based on Healdsburg Median Income of $56,969 @ 40% Target @ 50% Target Home Rent Extremely Low < 30% AMI $17,091 8 to 9 15 to 17 $98,522 $427 Very Low 31% to 50% AMI $28,485 10 to 12 19 to 22 $164,204 $712 Low 51% to 79% AMI $45,575 9 to 11 18 to 21 $262,726 $1,139 Moderate 80% to 119% AMI $68,363 12 to 14 23 to 26 $394,089 $1,709 Above Moderate 120% to 200% AMI $115,011 16 to 19 32 to 36 $663,000 $2,875 Market > 200% AMI > $115,011 13 to 16 27 to 31 > $663,000 > $2,875 Note: Median-priced home in Healdsburg as of September 2015 is $663,000. Economic & Planning Systems, Inc. 6 Key Healdsburg Observations • The City’s working families are being displaced by increasing housing rents and pricing • 33% of jobs in Healdsburg are filled by Healdsburg residents; 42% of working residents currently work in Healdsburg • Housing supply is biased toward single family units which comprise 79 percent of all housing units at a time when demand for multifamily living and rentals is increasing • Housing supply has increased slowly in past years due to a variety of factors • Market factors including increasing demand and limited supply lead to housing costs not affordable by working families, including those above “Moderate” income, but without means to compete in open market Economic & Planning Systems, Inc. 7 Observations, continued • Second-home buyers, attracted to the area’s ample recreational attractions and small-town appeal, are reducing housing supply available to local workers, while driving up pricing • The City has limited financial capacity to subsidize affordable housing projects • While rental demand has increased since 2000, no new rental or multifamily product of any scale has been built in town since then • GMO contributes to the bias towards single family detached home development which is unaffordable to approximately 70% to 80% of the City’s households Economic & Planning Systems, Inc. 8