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MONTERY COUNTY 2005 GENERAL PLAN UPDATE STUDY SESSION HOUSING June 16, 2005.

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Presentation on theme: "MONTERY COUNTY 2005 GENERAL PLAN UPDATE STUDY SESSION HOUSING June 16, 2005."— Presentation transcript:

1 MONTERY COUNTY 2005 GENERAL PLAN UPDATE STUDY SESSION HOUSING June 16, 2005

2 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 equity- sharing 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.

3 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.

4 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.

5 MONTEREY COUNTY’S HOUSING ELEMENT Monterey County’s Housing Element was adopted in It contains policies and programs necessary to ensure that the Regional Housing Needs Allocation can be accommodated by Monterey County’s Housing Element was adopted in It contains policies and programs necessary to ensure that the Regional Housing Needs Allocation can be accommodated by 2008.

6 SUMMARY OF PRIMARY PROGRAMS CONTAINED IN THE ADOPTED HOUSING ELEMENT 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

7 HOUSING PRODUCTION SUMMARY Between 1989 and 2000 a total of approximately 6,500 new residential units were constructed in the County. Between 1989 and 2000 a total of approximately 6,500 new residential units were constructed in the County.

8 AFFORDABILITY GAP In % of Monterey County residents could afford to purchase the median priced single family home. In % 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 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 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.

9 REGIONAL HOUSING NEEDS Monterey County’s Regional Housing Needs Allocation (RHNA) for is a total of 2,511 units as follows: Very Low Income:821 Very Low Income:821 Low Income:608 Low Income:608 Moderate Income:937 Moderate Income:937 Above Moderate Income:145 Above Moderate Income:145 Total 2,511 Total 2,511

10 2005 AFFORDABLE HOUSING Income Level3 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

11 The Housing Element is Required To Identify sufficient land, zoned at appropriate densities to achieve the allocation. 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. 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.

12 DENSITY TARGETS Income LevelDensity Range Very low and Low15 – 30 du/ac Moderate10 – 15 du/ac Above Moderate1-9 du/ac

13 QUESTION OF BALLANCE Need enough market rate housing to support affordable units Need enough market rate housing to support affordable units  Return to Development  Carry Infrastructure Requirements

14 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. 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.

15 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. 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 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. Encourage special needs housing that the private sector cannot build. Effectively use government subsidy. Effectively use government subsidy. Undertake programs that can be feasibly implemented given County resources. Undertake programs that can be feasibly implemented given County resources.

16 CONSIDERATIONS

17 The existing Housing Element includes the following: Housing Target Areas: Fort Ord, Rancho San Juan, Pine Canyon, Castroville, Pajaro, Boronda and San Lucas 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) 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. Board previously provided direction to include additional Rural Centers as housing target areas.

18 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.

19 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.

20 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.

21 GPU-3 Voluntary program for projects with a minimum of 10% very low, 20% low, 40% moderate, 10% WF1, 20% WF2. 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 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. 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, 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. Incentives provided including density bonus, permit assisting, fee waiver, and modified development standard.

22 Refinement Group Voluntary program for projects with a minimum of 10% very low, 15% low, 15% moderate, 20% WF1, 20% WF2. 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 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. 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. 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. 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 Projects may proceed in advance of the adoption of community plans and/or infrastructure/financing plans

23 Developer Incentive Program Include the State Density Bonus provision – if a project meets the threshold for affordability up to 35% density bonus. 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. 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. 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 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. The County can increase the density bonus over the 35% maximum as the amount and levels of affordability over the State thresholds.

24 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.

25 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.

26 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.

27 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.

28 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

29 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.

30 MONTERY COUNTY 2005 GENERAL PLAN UPDATE STUDY SESSION HOUSING, ECONOMIC DEVELOPMENT June 16, 2005

31 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 (180%) $87,550$98,500$109,450$118,200

32 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

33 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

34 DENSITY BONUS PROVISIONS Minimum Project Qualifications: 10% lower income10% lower income 5% very low income5% very low income Qualified senior housingQualified senior housing 10% in a condo or PUD for moderate income10% in a condo or PUD for moderate income 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.

35 Density Bonus: Increases in densities over the base land use regulations (without a GPA or Rezoning) must be provided to qualified projects if requested. 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 The increases must range from a minimum of 20% to 35%, increasing as the levels of affordability increase DENSITY BONUS PROVISIONS

36 Incentives: As the affordability levels deepen more incentives must be provided. 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. 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. A requested concession can only be denied if it has a specific adverse impact that cannot be feasibly mitigated. DENSITY BONUS PROVISIONS

37 STATE - SECOND UNIT PROVISIONS New State provisions related to allowing second units (SB 1866) went into effect on January 1, New State provisions related to allowing second units (SB 1866) went into effect on January 1, Local land use agencies must either adopt an ordinance or apply minimum State requirements to allow second units as a ministerial act. Local land use agencies must either adopt an ordinance or apply minimum State requirements to allow second units as a ministerial act.

38 STATE - SECOND UNIT PROVISIONS A local ordinance may specify criteria/requirements such as: Designate areas where 2 nd units are permittedDesignate areas where 2 nd units are permitted Designated minimum requirements such as adequacy of water and wastewater systemsDesignated minimum requirements such as adequacy of water and wastewater systems Address traffic impactsAddress traffic impacts Impose site development standards including conformance with base densityImpose site development standards including conformance with base density


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