There are no fiscal implications to the County General Fund.
REASONS FOR RECOMMENDATION
The 2013 Annual Housing Element Progress Report ("Report," Attachment A) provides data to the California Department of Housing and Community Development (HCD) on housing unit construction activity and Housing Element program status in 2013. The submittal of the Report is required by Government Code Section 65400 (Attachment B). It has been prepared in the required format and contains the information specified in Title 25, Division 1, Chapter 6, Sections 6200-6203 of the California Code of Regulations on Housing Element Annual Progress Reports (Attachment C).
The information presented in this year's Report was compiled with assistance of staff from other departments and agencies responsible for the programs for which data and outcomes are available. This 2013 Report is based on the 2012, 2011, 2010, and 2009 reports which precede it.
Government Code Section 65400 requires that the Report be considered at a public meeting before the Board of Supervisors prior to submittal to HCD by April 1 of each year.
The recommended action will have no/neutral impact on children and youth.
The recommended action will have no/neutral impact on seniors.
The recommended action will have no/neutral sustainability implications.
Purpose of the Report
HCD requires each jurisdiction to prepare an annual report on the status and progress of implementation of the Housing Element in order to increase awareness of the jurisdictions' progress on Housing Element implementation, and to facilitate the type of program tracking and record keeping that would be useful in preparing jurisdictions' subsequent Housing Element updates. It also prompts jurisdictions to more fully evaluate programs on an ongoing basis, rather than once every eight years when the Housing Element is required to be updated.
History and Timing of the Report
Government Code Section 65400 requires each local jurisdiction to provide an annual report on the status of the jurisdiction's Housing Element. With the release of a standard reporting template in March 2010, HCD completed implementation of Section 65400. Reports are due by April 1st of each year. This year's Report is the fifth to be submitted by the County of Santa Clara to HCD, and the fourth to be submitted since the adoption in August 2010 of the County's Housing Element Update 2009-2014.
Types of Data in Report
The Report, and the three that preceded it, contain data and program information on the County's Housing Element Update 2009-2014 ("2009 Housing Element"). This 2013 Report covers development activity and program status for 2013. The two types of data being reported are: 1) statistics on building permits issued for housing; and 2) status of programs referenced in the 2009 Housing Element that have quantifiable objectives or defined outcomes or deliverables.
Building permit data is compared against the County's Regional Housing Needs Allocation (RHNA) which applies to the unincorporated areas for the current Housing Element cycle. The report template has a column for each year of the Housing Element cycle. The intent is that each year's report fills in the respective column for the cycle, supplementing the data input from the previous year. Thus, the table includes cumulative units permitted. This mechanism is intended to facilitate comparison between the RHNA target for the jurisdiction and the actual housing production for the jurisdiction. This mechanism can also reveal trends in housing unit production over the course of the Housing Element cycle.
Data on program implementation reflects either the current status of the program or cumulative results over the course of the Housing Element cycle, consistent with the nature of the objective as stated in the Housing Element.
Summary of Data and Information in Report
The data on building permits issued for housing, found in tables A, A2, A3, and B, show that the number of permits issued for housing of all types has recovered from the lows of the recent recession. The total for this Housing Element cycle to date (980 units) is within 10% of the County’s RHNA (1090 units), and it is possible that by the end of the current cycle in 2014, the County will have produced an amount of housing equal to or greater than its RHNA.
Detailed Data by Table
Table A reports on the number of Very Low, Low, and Mixed-Income Multifamily projects permitted in 2013. For Table A, staff provides the number of permits issued for secondary dwellings, agricultural worker housing, and apartment-style units at Stanford University. Fifteen (15) secondary unit permits were issued, one (1) agricultural worker housing permit was issued, and permits for 270 apartment-style units at Stanford were issued in Fiscal Year 2013-14.
The affordability of secondary units is allocated between Very Low (77%) and Above Moderate (25%), based on staff’s 2013 survey of second unit rents. The affordability of agricultural worker housing is allocated to the Above Moderate category, as no data on actual rents for such units is available. The affordability for apartment-style units at Stanford are based on actual rents charged (by household) for similar apartments at Stanford.
Table A also includes the total number of permits issued for Moderate and Above Moderate Income housing, reported upon in more detail in Table A3.
Table A2 reports on progress toward commitments to meet a portion of the RHNA through rehabilitation of existing units. Although the County's rehabilitation program funded rehabilitation for 12 units in Fiscal Year 2013, and its rehabilitation grant program funded seven loans(for $750,000) and seven grants in Fiscal Year 2013 (for $140,000), three of which were in the unincorporated area, the County did not rely on rehabilitation to meet its RHNA. Therefore, the Report does not include the number of units rehabilitated in Table A2.
Table A3 contains the total number of permits issued for housing considered affordable to households with Moderate and Above Moderate incomes. Secondary dwellings, agricultural worker housing, and Stanford apartments are not included in this table since they are reported in table A1.
The data show that total number of permits issued for this category declined at the beginning of this housing element cycle, which started in 2007, just before the housing market deteriorated. By 2013, however, the pace of permit issuance for new housing construction appears to have recovered. In 2013, 53 new single family housing units affordable to those with above moderate incomes were permitted for construction, approximately the same level as for the years since 2008. Also, housing construction at Stanford matched that of 2007-2008.
Table B shows the County's progress in issuing permits for housing in unincorporated areas cumulatively during the 2007-2014 housing element cycle, and compares that progress to the County's RHNA for that period. The projected need for the County's unincorporated areas as indicated by its RHNA for 2007-2014 was 1,090 units. From 2007 through 2013, 979 permits have been issued for housing in the unincorporated areas of the County, almost 90% of the projected need indicated by the County's RHNA. At this average pace of almost 140 housing units permitted per year, the County will have permitted more than its RHNA housing units by the end of the 2007-2014 housing element cycle.
Because of Stanford apartment construction, more housing permits were issued for housing affordable to Low income households than any other income category. Fewer permits were issued for housing affordable to Very Low income households than any other category. All of those were secondary units which are presumed (per the 2013 secondary unit affordability study) to be occupied by households which pay no rent.
In addition to providing zoning and permit services for housing construction, the County contributes through its Office of Affordable Housing to the construction of housing primarily affordable to Extremely Low Income households in other jurisdictions. The County continues to make funding available through the Stanford Affordable Housing Fund, which funds housing affordable to Extremely Low Income households. In addition, the County will continue its administration of the CDBG and HOME programs which fund housing affordable to households with low, very low, and extremely low incomes.
Table C shows data on Program Implementation for the programs and activities included in the Housing Element that have a quantifiable objective, or a defined outcome or deliverable. There are 39 such programs in the Housing Element. These programs and activities are managed by numerous housing-related agencies and service providers in the County. The services and outcomes of these programs often apply to the entire County and its cities, not just the unincorporated areas of County. Table C shows that most programs are ongoing, a few others have been discontinued, and four new programs and activities are to be implemented or undertaken. Most programs are meeting their yearly goals and are progressing toward their longer term goals.
The four (4) new programs and activities that have been or are to be implemented or undertaken are:
1. The production of an informational brochure and web-based information describing policies on Secondary Dwellings and Manufactured Homes (completed January 2012);
2. Bring before the Board of Supervisors for consideration a Zoning Ordinance Amendment to allow limited Emergency Shelters as Ancillary Uses within existing permitted religious institutions, non-profit institutions, and community care-expanded facilities (proposals currently under consideration by the Planning Commission);
3. Bring before the Board of Supervisors for their consideration an amendment to the Zoning Ordinance's definitions section stating that "Any employee housing providing exclusive accommodations for six or fewer employees shall be deemed to be a single-family residential use within zoning districts permitting such uses" (Implemented December 2012); and
4. Consider a County Ordinance Code amendment exempting certain urban lots from Building Site Approval pursuant to section C12-300 et seq. (to be implemented March 2014).
CONSEQUENCES OF NEGATIVE ACTION
The Annual Housing Element Progress Report is required pursuant to Government Code Section 65400. If the Board of Supervisors does not accept the report and forward it to HCD, the County of Santa Clara will not be in compliance with the requirements of Government Code Section 65400. Compliance with Government Code requirements for the filing of the Annual Housing Element Progress Report enables eligibility and/or is a criterion for receipt of various State housing funds.
STEPS FOLLOWING APPROVAL
Following the public hearing and acceptance of the Report by the Board of Supervisors, the Department of Planning and Development will submit the Report to HCD and the Governor's Office of Planning and Research.