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CC 2016-03-22_10b Housing Element Update MEMORANDUM TO: CITY COUNCIL FROM: TERESA McCLISH, COMMUNITY DEVELOPMENT DIRECTOR BY: KELLY HEFFERNON, ASSOCIATE PLANNER SUBJECT: CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE FOR THE 2014-2019 REGIONAL HOUSING NEEDS ASSESSMENT (RHNA) CYCLE (GENERAL PLAN AMENDMENT 14-002) AND NEGATIVE DECLARATION; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS AND SUPPORTIVE AND TRANSITIONAL HOUSING (DEVELOPMENT CODE AMENDMENT 14-006); CITYWIDE DATE: MARCH 22, 2016 RECOMMENDATION: The Planning Commission recommends the City Council: 1. Receive public comment on the Draft Housing Element Update for the 2014-2019 Regional Housing Needs Assessment (RHNA) Cycle and adopt a Resolution approving General Plan Amendment No. 14-002, thereby adopting a Negative Declaration and approving the Housing Element Update; and 2. Introduce an Ordinance amending portions of Title 16 of the Arroyo Grande Municipal Code to allow emergency shelters as a permitted use in the Industrial Mixed Use (IMU) and Highway Mixed Use (HMU) zoning districts pursuant to Housing Element Program K.2-1, and to define supportive and transitional housing as residential uses subject to the same standards that apply to other housing in the same zone pursuant to Housing Element Program K.2-2 (Development Code Amendment 14-006). BACKGROUND: State law requires each city and county to adopt a General Plan containing at least seven (7) elements, including housing, which is to be updated approximately every five (5) years. The Housing Element is subject to detailed statutory requirements and mandatory review and certification by the State Department of Housing and Community Development (HCD). The Housing Element is a comprehensive assessment of current and projected housing needs for all economic segments of Arroyo Grande. Under State law, the purpose of the Housing Element is to assess existing and projected housing needs, identify obstacles to meeting those needs, and demonstrate capacity for each city to accommodate its “fair share” of the projected need for new housing units in the Item 10.b. - Page 1 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 2 region. It must contain a land inventory and identify adequate sites to provide for the needs of households at all income levels. HCD allocates a region’s share of the statewide housing need to Councils of Governments (COGs) based on State Department of Finance population projections and regional population forecasts. The San Luis Obispo Council of Governments (SLOCOG) adopted the Regional Housing Needs Plan (RHNP) for the incorporated cities and unincorporated areas of San Luis Obispo County in June 2013. Each jurisdiction is required to integrate the housing unit distribution numbers identified in the RHNP in their Housing Element update in order to accommodate their “fair share” of the anticipated future housing demand. For SLOCOG’s 2014 – 2019 Housing Element Cycle, the Regional Housing Needs Allocation (RHNA) data has been established for the City of Arroyo Grande as follows: Income Category Number of Units Very Low Income (0-50% of AMI)* 60 Low Income (51-80% of AMI) 38 Moderate Income (81-120% of AMI) 43 Above Moderate Income (over 120% of AMI) 101 Total 242 *AMI = Area Median Income The distribution of 242 total housing units for the City is about 33% less than the previous program period, which allocated 362 total housing units to the City. The City Council adopted the City’s previous Housing Element on October 22, 2013 and HCD certified the document on December 5, 2013. This last Housing Element cycle took more time than expected to complete due to multiple HCD reviews and other staff priorities. The City contracted with Lisa Wise Consulting in May 2014 to assist with the current Housing Element Update. Staff and the consultant have been working together to evaluate the previous Housing Element and the local housing supply, inventory vacant land and underutilized sites, and assess constraints to the development of housing as required by State law. The Planning Commission held a public workshop to review and comment on the draft Housing Element Update on September 2, 2014. The Commission provided the following comments: • Development projects should include a percentage of low and very low income units dispersed throughout the project to avoid a concentration of lower income housing. Item 10.b. - Page 2 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 3 • Delete reference to “homestays” in Policy B.6 and Program B.6-1 since they are required to be owner-occupied and therefore are not considered a loss of permanent workforce housing. • Replace the word “adverse” impacts with “all” impacts in Policy H.2. • Replace the word “creed” with “religion” in Goal N and Policy N.1. • Include water efficient programs similar to the energy efficient programs. • Minor edits and corrections to tables. • Commissioners were supportive of new Policy A.15 regarding first-time home buyers. The City Council considered the draft Housing Element on September 23, 2014 and did not make any changes to the document. Staff submitted a revised draft document to HCD for review that included Planning Commission changes. HCD responded with additional City actions that must occur prior to certification as listed below (Housing Element law in italics followed by HCD required actions): A. Housing Needs, Resources, and Constraints 1. Provide for a variety of housing, including multifamily, rental housing, factory- built housing, mobilehomes, housing for agricultural employees, emergency shelters, and transitional housing (Section 65583.2). Sites with Zoning for a Variety of Housing Types: Emergency Shelters: Program K.2-1, identified in the previous element, committed the City to amend the zoning ordinance to permit an emergency shelter in the IMU and HMU districts without discretionary action within one year from adoption of the 4th cycle housing element. As noted in the current draft element, Program K.2-1 has not been implemented. The Department will be unable to find the housing element in compliance until the City has completed the required zoning amendment and submitted the adopted element to the Department pursuant to Government Code Section 65585(g). 2. Analyze potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the types of housing identified in paragraph (1) of subdivision I, and for persons with disabilities as identified in the analysis pursuant to paragraph (7), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities, Item 10.b. - Page 3 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 4 supportive housing, transitional housing, and emergency shelters identified pursuant to paragraph (7) (Section 65583(a)(5)). As noted in the element, the City applies a different approval process for multifamily development over four units requiring Planning Commission review and a Conditional Use Permit. Additional review and complex discretionary findings can add significant time and uncertainty to the approval process and consequently can impact the cost and supply of housing, particularly housing affordable to low- and moderate- income households. The element must analyze whether the approval process for multifamily development poses a potential constraint and include a program to remove or mitigate constraints. City actions required to address this finding would be satisfied, if the City approves a program to implement proposed draft actions described in the City’s November 20, 2014 communication. Proposed draft actions would increase allowable density in the OMU zone from 15 to 20 units per acre for stand-alone multifamily housing and allow multifamily development with a Minor Use Permit (MUP). B. Housing Programs The housing element shall contain programs which address, and where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing (Section 65583(c)(3)). As noted in Finding A-2, the element requires a complete analysis of potential governmental constraints. Depending upon the results of that analysis, the City may need to revise or add programs to remove or mitigate any identified constraints. C. Public Participation Local governments shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the element shall describe this effort (Section 65583(c)(7)). The element outlines the public participation process the City will use; however, when the element was submitted to the Department, the element had not been released for public comment. The City will take steps to comply with the public participation requirement before adoption of the final housing element. Engaging the community, organizations and service providers representing lower-income households is important in developing, adopting Item 10.b. - Page 4 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 5 and implementing an effective housing element. The City will engage the community, including any parties commenting on the draft element, while the draft element is being revised. Interested parties and the public will be provided sufficient notice (i.e. 30 days) and opportunity to comment. The housing element should describe the success of outreach efforts, summarize public comments and describe how the element incorporated public input. The City’s response to HCD required actions is discussed under Analysis of Issues. The draft element is included as Exhibit A of the attached Resolution and includes previous Planning Commission recommendations. Staff has been working with HCD to refine the document and ensure that it includes adequate modifications for certification. The Planning Commission considered the Draft Housing Element Update and Emergency Shelter Ordinance on January 19, 2016 and continued the public hearing to March 1, 2016 to allow time for additional public outreach (see Attachment 1 for 1/19/16 meeting minutes). Staff created a mailing list of potentially interested organizations and individuals who were notified of the public hearing. On March 1, 2016 the Planning Commission held a second public hearing on this item and adopted two Resolutions: 1) Resolution recommending the City Council adopt a Negative Declaration and approving General Plan Amendment 14-002 for the Housing Element Update; and 2) Resolution recommending the City Council approve Development Code Amendment 14-006, thereby adopting an Ordinance amending portions of Title 16 of the Arroyo Grande Municipal Code regarding Emergency Shelters and transitional and supportive housing. Although notices were sent directly to fifty-two (52) organizations and individuals, posted in The Tribune and on the City’s website, there were no members from the public who commented on the item. Based on the Planning Commission’s recommendation, the public hearing mailing list was amended to include the Lucia Mar Unified School District (see Attachment 2 for 3/1/16 meeting minutes and Attachment 3 for mailing list). Once the City Council considers the draft Housing Element and makes any amendments, the City will send the document to HCD for final review and certification. Beyond compliance with State law, a certified housing element makes the City eligible for State and Federal funding for various housing programs. The City is currently not pursuing any grant funding for housing-related programs. ANALYSIS OF ISSUES: Draft Housing Element Update The Draft Housing Element Update is divided into the following chapters; a brief discussion of each chapter is discussed further below. Item 10.b. - Page 5 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 6 CHAPTER TITLE 1 Introduction 2 Goals, Policies, Programs and Quantified Objectives 3 Background Information 4 Housing Resources 5 Housing Constraints 6 Review of the Previous Housing Element Chapter 1 - Introduction The Introduction provides an overview of the required components as well as the organization of the Housing Element. In summary, the required components of the Housing Element include: • Analysis of housing needs based on the population and existing housing stock; • Analysis of land suitable to accommodate the City’s regional “fair share” of housing; • Analysis of constraints to housing production and mitigation of those constraints; • Housing objectives, policies and actions, which guide decision making and address the City’s identified housing needs and mitigation of constraints; and • Description of programs which implement the City’s housing goals and address housing needs. Chapter 2 – Goals, Policies, Programs and Quantified Objectives To meet the purpose of the Housing Element, the document provides sixteen (16) main goals, policies that enact the goals, and programs to implement those policies. The goals are listed in the Table of Contents for easier reference. Most all of the goals, policies and programs have been retained from the previous Housing Element since they are still relevant and desirable. Several of the policies have been revised to better clarify their intent and include updated information. The following policies and programs have been added since the previous Housing Element update and amended per Planning Commission recommendations: A.15. The City shall pursue program assistance for first-time home buyers. A.15-1. The City shall establish a program to provide assistance to first-time home buyers. Responsible agency/department: Community Development Timeframe: Within 2 years of Housing Element adoption Item 10.b. - Page 6 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 7 Funding: General Fund; HCD Home Investments Partnerships Program (HOME) Expected Outcome: Development of a first-time home buyers program Quantified Objective: n/a B.6. The City shall continue to regulate the use of existing residences on residentially zoned properties for vacation rentals. B.6-1. The City shall monitor the loss of permanent workforce housing from vacation rentals and consider modifying the Development Code to adjust for this loss. Responsible agency/department: Community Development Timeframe: Ongoing Funding: General Fund Expected Outcome: Program to monitor vacation rentals Quantified Objective: n/a J.5-1. To encourage farmworker housing, the City will amend the zoning ordinance to identify farmworker housing as a residential use in the use tables. The City Zoning Ordinance will be amended to ensure that permit processing procedures for farmworker housing do not conflict with Health and Safety Code Sections 17021.5, which states that farmworker housing for six or fewer employees should be “deemed a single-family structure with a residential land use designation”, and 17021.6 which states that for "employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household...no conditional use permit, zoning variance, or other zoning clearance shall be required of employee housing of this employee housing that is not required of any other agricultural activity in the same zone”. Responsible agency/department: Community Development Timeframe: Within 1 year of Housing Element adoption Funding: General Fund Expected Outcome: Increased housing opportunities for farmworkers Quantified Objective: 5 very low-income units Item 10.b. - Page 7 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 8 K.2-2. The City shall amend the Development Code to define transitional and supportive housing as residential uses per Section 65582 of the Government Code subject to the same standards that apply to other housing in the same zone. Responsible agency/department: Community Development Timeframe: Concurrently with Housing Element adoption (per Government Code Section 65583(a)(4)) Funding: General Fund Expected Outcome: Expected outcome is compliance with Housing Element law regarding transitional and supportive housing. Quantified Objective: n/a Note that staff amended program G.1-3 in response to City Council comments during the last Housing Element review in October 2013. There was concern about not having design review for development of five (5) units or more of attached multiple-family units. The revised program allows development of up to fifteen (15) multiple-family attached units in the MF and MFA zoning districts with a Minor Use Permit (MUP) subject to design review through the Architectural Review Committee. All approvals by the Community Development Director may be referred or appealed to the Planning Commission. Development of over fifteen (15) multiple-family attached units requires a Conditional Use Permit (CUP). The State does not require “extremely” low-income households to be quantified in our RHNA or included in our goals, policies and programs. However, these types of households must be included in the demographic analysis, which is presented in Chapter 3. Since HCD generally encourages inclusion of extremely low-income units in goals, policies and programs of housing elements, they are included in Chapter 2. Regarding HCD’s comments, response to HCD Item A.1 (emergency shelters) is discussed below starting on page 9. Staff responded to HCD Item A.2. with the following additional program: A.10-3. To encourage higher densities and reduce constraints to multi-family housing production, the City shall amend the Development Code to allow densities up to 20 du/ac in the Office Mixed Use (OMU) District for 100% multi-family housing projects with a Minor Use Permit (MUP) Item 10.b. - Page 8 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 9 subject to design review through the Architectural Review Committee. Mixed-use projects will continue to have a maximum allowed density of 20 du/ac. Responsible agency/department: Community Development Timeframe: Within 2 years of Housing Element adoption Funding: General Fund Expected Outcome: Remove barrier to construct affordable housing Quantified Objective: n/a Chapter 3 – Background Information This chapter presents and analyzes demographic, population and housing characteristics for better understanding of the local housing market to accommodate different types of housing for all income levels. Chapter 4 – Housing Resources Chapter 4 evaluates the availability of land and public services available to support future residential development, and summarizes financial resources available for affordable housing and energy conservation opportunities. Key aspects of this chapter include the inventory of potential affordable housing development sites. One of the most important aspects of the Housing Element Update is to identify sufficient sites and densities for affordable housing to demonstrate that the RHNA numbers can be satisfied. Demonstrating that the City has sufficient land zoned to support mixed use or higher density housing is critical for HCD certification of the Housing Element. Tables 4-7 (Vacant Sites Inventory) and 4-8 (Opportunity Sites Inventory) present a potential list of sites that could support development of or redevelopment to higher density projects in the City’s mixed use zoning districts or affordable residential development in residential districts. The tables describe the site conditions, size of properties, existing zoning, potential density and number of affordable units. As the tables indicate, the City has sufficient land area to support additional (and affordable) housing to meet its RHNA numbers. A common misconception of the law is that jurisdictions must build their regional housing needs allocation by the end of the program period. What is instead required is that jurisdictions must show that their policies and zoning can accommodate these units. The City’s Draft Housing Element identifies vacant and opportunity sites where housing could be provided to meet our RHNA of 242 units and areas that would support Item 10.b. - Page 9 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 10 more density. The City cannot ensure that these sites will be developed for affordable housing or when they might be developed. However, by identifying specific sites where housing would be an appropriate use, and adopting Housing Element policies that support housing development, the City will enhance the chances that it will occur. It is anticipated that in most cases, affordable housing development would only occur through the combination of supportive policies (e.g. density bonus, inclusionary zoning, fast track processing, waiver of fees, etc.), the involvement of non-profit housing providers, housing subsidies from State or Federal sources, and the use of the City’s in- lieu affordable housing fund. Chapter 5 – Housing Constraints This chapter analyzes the constraints to housing development, including governmental constraints (e.g. land use and development controls, building code requirements, impact fees, permit processing timelines, and improvement requirements), environmental constraints (e.g. water availability, traffic and circulation, site constraints), and non- governmental constraints (e.g. land costs, construction costs, financial costs, and insurance availability). Chapter 6 – Review of the Previous Housing Element Chapter 6 evaluates the status and implementation of the programs of the previous Housing Element, focusing on programs that were successful and should be continued, and those that were ineffective and should be eliminated or modified. Emergency Shelters HCD requires that Program K.2-1, which permits emergency shelters in the IMU and HMU districts without discretionary action, must be implemented before the current Housing Element can be certified. Program K.2-2, mentioned above as a new program to define transitional and supportive housing as a residential use subject to the same standards that apply to other housing in the same zone, must also be implemented. As background, SB2 became effective January 1, 2008, requiring all cities and counties in California to provide at least one zoning district which allows emergency shelters without a conditional use permit or other discretionary approval. The Housing Element must identify the zoning district(s) and demonstrate that there is sufficient land capacity to accommodate the locality’s need for emergency shelters and at least one year-round emergency shelter facility. In 2014, SB 745 created new definitions of “supportive housing”, “target population”, and “transitional housing” that are more specific to Housing Element law. These definitions are included in proposed Development Code Amendment 14-006. Per the draft Housing Element, Program K.2-1 requires the following: Item 10.b. - Page 10 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 11 K.2-1. The City shall amend the Development Code to allow emergency shelters without a conditional use permit or other discretionary permits in appropriate locations in compliance with SB 2, the “Fair Share Zoning” law. The Development Code amendment shall include a definition for “emergency shelter.” Emergency shelters are currently not allowed in commercial mixed use districts, and are allowed through the Conditional Use Permit process in the Condominium/Townhouse (MF), Apartments (MFA) and Multifamily Very High Density (MFVH) residential districts. The Development Code shall be updated to permit emergency shelters by right in at least one zone or site. Potential zones include the Industrial Mixed-Use (IMU) and Highway Mixed-Use (HMU) districts. These commercial districts have sufficient capacity to house emergency shelters with approximately 18 acres of vacant or underutilized land available. The IMU district has several large parcels totaling almost 13.5 acres with ten (10) acres that are currently used as storage and/or construction yards with small or no permanent structures. The HMU district has less potential, although there are about four acres with a couple of large vacant parcels totaling 1.64 acres. The Development Code can include locational and operational criteria for emergency shelters such as: • Proximity of public transit, supportive services, and commercial services; • Hours of operation; • External lighting and noise; • Provision of security measures for the proper operation and management of a proposed facility; • Measures to avoid queues of individuals outside proposed facility; and • Compliance with county and State health and safety requirements for food, medical, another supportive services provided onsite. Such criteria can act to encourage and facilitate emergency shelters and transitional housing through clear and unambiguous guidelines for the application review process, the basis for approval, and the terms and conditions of approval. The City will solicit input from local service providers and the South San Luis Obispo County working group in the preparation and adoption of the amendment to the Development Code to ensure that Item 10.b. - Page 11 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 12 development standards and permit processing will not impede the approval and/or development of emergency shelters. Responsible agency/department: Community Development Timeframe: Concurrently with Housing Element adoption (per Government Code Section 65583(a)(4)) Funding: General Fund Expected Outcome: Expected outcome is compliance with SB 2 regarding emergency shelters. Quantified Objective: n/a K.2-2. The City shall amend the Development Code to define transitional and supportive housing as residential uses per Section 65582 of the Government Code subject to the same standards that apply to other housing in the same zone. Responsible agency/department: Community Development Timeframe: Concurrently with Housing Element adoption (per Government Code Section 65583(a)(4)) Funding: General Fund Expected Outcome: Expected outcome is compliance with Housing Element law regarding transitional and supportive housing. Quantified Objective: n/a To implement Programs K.2-1 and K.2-2 and be consistent with State Housing Element Law, Development Code Amendment 14-006 is proposed that includes changes to the Municipal Code as indicated below. 1. Under Section 16.04.070 – Definitions, add: • “Emergency shelter” means housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay (as defined by California Health and Safety Code Section 50801(e)). Item 10.b. - Page 12 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 13 • “Supportive housing” means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite service 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 (as defined by Government Code Section 65582). Supportive housing shall be considered a residential use of property, and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. • “Target population” means persons with low incomes who have one or more disabilities, including mental illness, HIV or 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 settings, veterans, and homeless people (as defined by Government Code Section 65582). • “Transitional housing” means a building or buildings configured 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 (6) months from the beginning of the assistance (as defined by Section 50675.2 of the Health and Safety Code). Transitional housing shall be considered a residential use of property, and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. Transitional housing does not include state licensed residential care facilities. 2. Under Section 16.36.030 - Commercial and mixed use regulations, modify Table 16.36.030(A) as follows: Item 10.b. - Page 13 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 14 Table 16.36.030(A) Uses Permitted Within Mixed Use and Commercial Districts Allowed Land Uses and Permit Requirements – LAND USE IMU TMU D-2.11 VCD HCO D-2.4 VMU D-2.11 HCO D-2.4 GMU FOMU HMU OMU D- 2.20 RC B. SERVICES - GENERAL Emergency shelters MUP NP NP NP NP NP MUP NP NP 3. Under Section 16.32.040 - Use regulations for residential districts, modify Table 16.32.040(A) as follows: Table 16.32.040(A) Uses Permitted Within Residential Districts USE RE RH RR RS SF VR D-2.4 MF MFA MFVH MHP 18. Supportive housing P P P P P P P P P P 19. Transitional housing P P P P P P P P P P 4. Under Chapter 16.52, Specific Use Development Standards, add a new Section 16.52.091 regarding Emergency Shelters: 16.52.091 – Emergency shelters. A. Purpose and Intent. It is the purpose of this section to facilitate and encourage the provision of emergency shelters for homeless persons and households by allowing permanent year-round emergency shelters without a conditional use permit or other discretionary action in the Industrial Mixed Use (IMU) and Highway Mixed Use (HMU) zoning districts, subject only to the same development standards that apply to other permitted uses in these zones, except for the following requirements unique to emergency shelters, as authorized by Government Code Section 65583(a)(4). B. Permit requirements. 1. Emergency shelter facilities shall comply with all federal and California State licensing requirements. Item 10.b. - Page 14 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 15 2. Emergency shelter facilities shall comply with all applicable Uniform Building Codes, Plumbing Codes and Fire Codes, including maximum occupancy restrictions. C. Minimum site design and development standards. An emergency shelter is subject to all property development standards of the zoning district in which it is located except as modified by the following standards: 1. The maximum number of beds or persons to be served nightly by an emergency shelter shall be thirty-four (34). 2. Off-street parking shall include one (1) vehicle parking space per three (3) beds and one (1) space per employee on the largest shift. A covered and secured area for bicycle parking shall be provided for use by staff and clients, commensurate with demonstrated need, but no less than a minimum of eight (8) bike parking spaces. 3. Exterior lighting shall be provided for security purposes. The lighting shall be stationary, directed away from adjacent properties and public right-of- way, and of an intensity compatible with the neighborhood. 4. Security shall be provided for residents, visitors and employees during the hours that the emergency shelter is in operation. 5. On-site management shall be provided. The agency or organization operating the shelter shall comply with the following requirements: a. Temporary shelters shall be available to residents for no more than six (6) months within a twelve (12) month period. The days of stay need not be consecutive. b. Staff and services shall be provided to assist residents to obtain permanent shelter and income. c. The provider shall have a written management plan including, as applicable, provisions for staff training, neighborhood outreach, security, screening of residents to insure compatibility with services provided at the facility, and for training, counseling and treatment programs for residents. 6. Appropriately sized and located exterior and interior on-site waiting and intake areas shall be provided. 7. Laundry facilities or services shall be provided that are adequate for the number of residents. 8. Emergency shelter facilities shall provide a refuse storage area that is completely enclosed with masonry walls not less than five (5) feet high with a solid-gated opening that is large enough to accommodate standard-sized trash and recycling bins, or other enclosures as approved by the Director of Community Development. The refuse enclosure shall be accessible to refuse collection vehicles. Item 10.b. - Page 15 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 16 9. The facility may provide one or more of the following specific common facilities for the exclusive use of the residents and staff: a. Central cooking and dining room(s). b. Recreation room. c. Counseling center. d. Child care facilities. e. Other supportive services. 10. Organized outdoor activities may only be conducted between the hours of 8:00 a.m. and 9:00 p.m. for noise abatement purposes. 11. An emergency shelter shall not be located within three hundred (300) feet of another emergency shelter, kindergarten through 12th grade curriculum school, child care center, or park as measured from the closest property line. 12. No individual or household shall be denied emergency shelter because of an inability to pay. ADVANTAGES: The Housing Element Update provides the necessary conditions for producing and preserving an adequate supply of affordable housing, including special needs housing (e.g. housing for the elderly, the disabled, female-headed households, large families, farmworkers, and homeless persons and families). The Housing Element includes strategies that address the City’s local housing needs, including an inventory of land adequately zoned for housing in all income categories and a commitment to assist in housing development through regulatory concessions and incentives. State law requires jurisdictions to make a diligent effort to involve all economic segments of the community in the Housing Element Update process. The public hearing process provides an opportunity for the public to identify problems and propose solutions to housing issues facing the City. By submitting the Housing Element to HCD the City will be in compliance with the statutory procedure for adoption of an updated Housing Element. A certified housing element makes the City eligible for State and Federal grant funding for various housing programs. DISADVANTAGES: Some of the policies identified encourage increased densities for infill sites and as such could result in parking or other neighborhood issues related to future proposed projects. However, the Housing Element provides for policies to ensure there are adequate sites for housing, development of housing at maximum densities is not required and all projects are subject to California Environmental Quality Act (CEQA) review. Item 10.b. - Page 16 CITY COUNCIL CONSIDERATION OF: 1) HOUSING ELEMENT UPDATE; AND 2) ORDINANCE AMENDING PORTIONS OF TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS MARCH 22, 2016 PAGE 17 ENVIRONMENTAL REVIEW: Staff has reviewed the Housing Element Update in accordance with the California Environmental Quality Act (CEQA) and has prepared an Initial Study and Draft Negative Declaration (Attachment 4) for Council consideration and action. If the Negative Declaration is not adopted, the document cannot be approved at this time. PUBLIC NOTIFICATION AND COMMENTS: Public Hearing Notices were mailed to potentially interested organizations and individuals. A Public Notice was placed in The Tribune on Friday March 11, 2016 for the City Council hearing. The Agenda was posted in front of City Hall on Thursday, March 17, 2016. The Agenda and report were posted on the City’s website on Friday, March 18, 2016. No public comments were received. Attachments: 1. Planning Commission Meeting Minutes of January 19, 2016 2. Planning Commission Meeting Minutes of March 1, 2016 3. Public Hearing Notice Mailing List 4. Draft Initial Study/Negative Declaration 5. Housing Element, June 30, 2014 – June 30, 2019 Item 10.b. - Page 17 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE APPROVING GENERAL PLAN AMENDMENT 14-002 AND ADOPTING AN INITIAL STUDY/NEGATIVE DECLARATION; HOUSING ELEMENT UPDATE FOR THE 2014-2019 REGIONAL HOUSING NEEDS ASSESSMENT (RHNA) CYCLE WHEREAS, Section 65302 of the California Government Code requires every city and county in California to adopt a Housing Element as part of its General Plan; and WHEREAS, State law further requires that the City of Arroyo Grande’s (“City”) Housing Element be updated at least every five years to demonstrate that the jurisdiction is capable of accommodating its “fair share” of the region’s housing needs and complies with the current requirements of State law; and WHEREAS, the City was given a Regional Housing Needs Allocation of 242 housing units for 2014-2019, including 60 units of very low income housing, 38 units of low income housing, 43 units of moderate income housing, and 101 units of above moderate housing; and WHEREAS, duly noticed public workshops and hearings were held by the Planning Commission on September 2, 2014, January 19, 2016 and March 1, 2016; and WHEREAS, duly noticed public hearings were held by the City Council on September 23, 2014 and March 22, 2016, at which time all interested persons were given the opportunity to be heard; and WHEREAS, the City Council has reviewed and considered the information and public testimony presented at the public hearing and the information contained in the Housing Element Update and staff report; and WHEREAS, the City Council has reviewed this project in compliance with the California Environmental Quality Act (CEQA) and determined that a negative declaration can be adopted. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby adopts a Negative Declaration and approves General Plan Amendment 14-002, thereby approving the Housing Element Update, a true and correct copy of which is on file in the City Clerk’s office and Community Development Department and incorporated herein by this reference as though set forth in full. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 22nd day of March, 2016. Item 10.b. - Page 18 RESOLUTION NO. PAGE 2 JIM HILL, MAYOR ATTEST: KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: DIANNE THOMPSON, CITY MANAGER APPROVED AS TO FORM: HEATHER K. WHITHAM, CITY ATTORNEY Item 10.b. - Page 19 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE REGARDING EMERGENCY SHELTERS AND SUPPORTIVE AND TRANSITIONAL HOUSING WHEREAS, the City of Arroyo Grande (“City”) seeks to be in compliance with the State of California’s regulations for the allowance of emergency shelters as required by State Senate Bill 2 (SB2), effective January 1, 2008, and codified in California Government Code Section 65583; and WHEREAS, Government Code Section 65583 obligates cities and counties to establish a zoning district that allows emergency shelters as a land use which does not require a conditional use permit or other discretionary approval, and allows for the opportunity to create written standards for the development and operation of emergency shelters; and WHEREAS, SB2 stipulates that supportive housing and transitional housing shall be considered residential uses, only subject to those restrictions that apply to other residential uses of the same type in the same zone; and WHEREAS, Housing Element Policy K.2 calls for amending the Development Code to be in compliance with SB2; and WHEREAS, the State Office of Housing and Community Development (HCD) requires implementation of Housing Element Programs K.2.1 and K.2.2 regarding emergency shelters and supportive and transitional housing prior to certification of the City’s Housing Element; and WHEREAS, a State-approved Housing Element is required for eligibility for certain grants; and WHEREAS, the City Council has considered the proposed Ordinance approving Development Code Amendment 14-006 at a duly noticed public hearing on March 22, 2016; and WHEREAS, after consideration of all testimony and all relevant evidence, the City Council has determined that the following Development Code Amendment findings can be made in an affirmative manner: A. The proposed amendment to Title 16 of the Arroyo Grande Municipal Code (AGMC) is consistent with the goals, objectives, policies and programs of the general plan, and is necessary and desirable to implement the provisions of the general plan. Item 10.b. - Page 20 ORDINANCE NO. PAGE 2 The proposed Development Code Amendment to add a new Section 16.52.091 pertaining to standards for emergency shelters and modify Tables 16.32.040(A) and 16.36.030(A) pertaining to supportive and transitional housing is consistent with the following policy of the Housing Element: Policy K.2. The City shall allow emergency shelters for overnight lodging in appropriate zoning districts as part of the Development Code Update in compliance with State law. B. The proposed amendment will not adversely affect the public health, safety, and general welfare or result in an illogical land use pattern. The proposed Development Code Amendment adds standards for emergency shelters which ensure that operating characteristics of any emergency shelter do not adversely impact public health, safety, and general welfare of the community in which a shelter is located. Compliance with the requirements of California Government Code Section 65583 for supportive housing and transitional housing will be of benefit to the public. C. The proposed revisions are consistent with the purpose and intent of Title 16, satisfy the intent of Chapters 16.04, 16.32 and 16.36 of the Municipal Code and provide for internal consistency. D. The potential environmental impacts of the proposed Development Code Amendment are insignificant. The proposed Development Code Amendment is exempt from environmental review under the “general rule” at Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines because it can be seen with certainty that there is no possibility that the proposed Development Code Amendment may have a significant effect on the environment. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Arroyo Grande as follows: SECTION 1: The above recitals and findings are true and correct and incorporated herein by this reference. SECTION 2: The following definitions in Arroyo Grande Municipal Code Subsection 16.04.070.C. are hereby added as follows: Item 10.b. - Page 21 ORDINANCE NO. PAGE 3 16.04.070.C. Definitions “Emergency shelter” means housing with minimal supportive services for homeless persons that is limited to occupancy of six months or less by a homeless person. No individual or household may be denied emergency shelter because of an inability to pay (as defined by California Health and Safety Code Section 50801(e)). “Supportive housing” means housing with no limit on length of stay, that is occupied by the target population, and that is linked to onsite or offsite service 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 (as defined by Government Code Section 65582). Supportive housing shall be considered a residential use of property, and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. “Target population” means persons with low incomes who have one or more disabilities, including mental illness, HIV or 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 settings, veterans, and homeless people (as defined by Government Code Section 65582). “Transitional housing” means a building or buildings configured 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 (6) months from the beginning of the assistance (as defined by Section 50675.2 of the Health and Safety Code). Transitional housing shall be considered a residential use of property, and shall be subject only to those restrictions that apply to other residential dwellings of the same type in the same zone. Transitional housing does not include state licensed residential care facilities. SECTION 3: Table 16.32.040-A in Section 16.32.040 of the Arroyo Grande Municipal is hereby amended to add the following uses: Item 10.b. - Page 22 ORDINANCE NO. PAGE 4 Table 16.32.040(A) Uses Permitted Within Residential Districts USE RE RH RR RS SF VR D-2.4 MF MFA MFVH MHP 18. Supportive housing P P P P P P P P P P 19. Transitional housing P P P P P P P P P P SECTION 4: Table 16.36.030(A) in Section 16.36.030 of the Arroyo Grande Municipal Code is hereby amended to add the following use: Table 16.36.030(A) Uses Permitted Within Mixed Use and Commercial Districts Allowed Land Uses and Permit Requirements – LAND USE IMU TMU D-2.11 VCD HCO D-2.4 VMU D-2.11 HCO D-2.4 GMU FOMU HMU OMU D- 2.20 RC B. SERVICES - GENERAL Emergency shelters MUP NP NP NP NP NP MUP NP NP SECTION 5: Arroyo Grande Municipal Code Section 16.52.091 is hereby added: 16.52.091 – Emergency shelters. A. Purpose and Intent. It is the purpose of this section to facilitate and encourage the provision of emergency shelters for homeless persons and households by allowing permanent year-round emergency shelters without a conditional use permit or other discretionary action in the Industrial Mixed Use (IMU) and Highway Mixed Use (HMU) zoning districts, subject only to the same development standards that apply to other permitted uses in these zones, except for the following requirements unique to emergency shelters, as authorized by Government Code Section 65583(a)(4). B. Permit requirements. 1. Emergency shelter facilities shall comply with all federal and California State licensing requirements. 2. Emergency shelter facilities shall comply with all applicable Uniform Building Codes, Plumbing Codes and Fire Codes, including maximum occupancy restrictions. Item 10.b. - Page 23 ORDINANCE NO. PAGE 5 C. Minimum site design and development standards. An emergency shelter is subject to all property development standards of the zoning district in which it is located except as modified by the following standards: 1. The maximum number of beds or persons to be served nightly by an emergency shelter shall be thirty-four (34). 2. Off-street parking shall include one (1) vehicle parking space per three (3) beds and one (1) space per employee on the largest shift. A covered and secured area for bicycle parking shall be provided for use by staff and clients, commensurate with demonstrated need, but no less than a minimum of eight (8) bike parking spaces. 3. Exterior lighting shall be provided for security purposes. The lighting shall be stationary, directed away from adjacent properties and public right-of- way, and of an intensity compatible with the neighborhood. 4. Security shall be provided for residents, visitors and employees during the hours that the emergency shelter is in operation. 5. On-site management shall be provided. The agency or organization operating the shelter shall comply with the following requirements: a. Temporary shelters shall be available to residents for no more than six (6) months within a twelve (12) month period. The days of stay need not be consecutive. b. Staff and services shall be provided to assist residents to obtain permanent shelter and income. c. The provider shall have a written management plan including, as applicable, provisions for staff training, neighborhood outreach, security, screening of residents to insure compatibility with services provided at the facility, and for training, counseling and treatment programs for residents. 6. Appropriately sized and located exterior and interior on-site waiting and intake areas shall be provided. 7. Laundry facilities or services shall be provided that are adequate for the number of residents. 8. Emergency shelter facilities shall provide a refuse storage area that is completely enclosed with masonry walls not less than five (5) feet high with a solid-gated opening that is large enough to accommodate standard-sized trash and recycling bins, or other enclosures as approved by the Director of Community Development. The refuse enclosure shall be accessible to refuse collection vehicles. 9. The facility may provide one or more of the following specific common facilities for the exclusive use of the residents and staff: a. Central cooking and dining room(s). b. Recreation room. c. Counseling center. d. Child care facilities. e. Other supportive services. 10. Organized outdoor activities may only be conducted between the hours of 8:00 a.m. and 9:00 p.m. for noise abatement purposes. Item 10.b. - Page 24 ORDINANCE NO. PAGE 6 11. An emergency shelter shall not be located within three hundred (300) feet of another emergency shelter, kindergarten through 12th grade curriculum school, child care center, or park as measured from the closest property line. 12. No individual or household shall be denied emergency shelter because of an inability to pay. SECTION 6: If any section, subsection, subdivision, paragraph, sentence, or clause of this Ordinance or any part thereof is for any reason held to be unlawful, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, or clause thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, or clause be declared unconstitutional. SECTION 7: Upon adoption of this Ordinance, the City Clerk shall file a Notice of Exemption pursuant to 14 CCR § 15062. SECTION 8: A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council Members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance. SECTION 11: This Ordinance shall take effect thirty (30) days from the date of adoption. Item 10.b. - Page 25 ORDINANCE NO. PAGE 7 On motion of Council Member , seconded by Council Member , and on the following roll call vote to wit: AYES: NOES: ABSENT: The foregoing Ordinance was adopted this ____ day of ________, 2016. Item 10.b. - Page 26 ORDINANCE NO. PAGE 8 ________________________________ JIM HILL, MAYOR ATTEST: ________________________________ KELLY WETMORE, CITY CLERK APPROVED AS TO CONTENT: _________________________________ DIANNE THOMPSON, CITY MANAGER APPROVED AS TO FORM: __________________________________ HEATHER K. WHITHAM, CITY ATTORNEY Item 10.b. - Page 27 Item 10.b. - Page 28 Item 10.b. - Page 29 Item 10.b. - Page 30 Item 10.b. - Page 31 Item 10.b. - Page 32 Item 10.b. - Page 33 It e m 10 . b . - Pa g e 34 It e m 10 . b . - Pa g e 35 It e m 10 . b . - Pa g e 36 It e m 10 . b . - Pa g e 37 It e m 10 . b . - Pa g e 38 It e m 10 . b . - Pa g e 39 It e m 10 . b . - Pa g e 40 It e m 10 . b . - Pa g e 41 It e m 10 . b . - Pa g e 42 It e m 10 . b . - Pa g e 43 It e m 10 . b . - Pa g e 44 It e m 10 . b . - Pa g e 45 It e m 10 . b . - Pa g e 46 It e m 10 . b . - Pa g e 47 It e m 10 . b . - Pa g e 48 It e m 10 . b . - Pa g e 49 It e m 10 . b . - Pa g e 50 It e m 10 . b . - Pa g e 51 It e m 10 . b . - Pa g e 52 It e m 10 . b . - Pa g e 53 It e m 10 . b . - Pa g e 54 It e m 10 . b . - Pa g e 55 It e m 10 . b . - Pa g e 56 It e m 10 . b . - Pa g e 57 It e m 10 . b . - Pa g e 58 It e m 10 . b . - Pa g e 59 It e m 10 . b . - Pa g e 60 It e m 10 . b . - Pa g e 61 It e m 10 . b . - Pa g e 62 It e m 10 . b . - Pa g e 63 It e m 10 . b . - Pa g e 64 It e m 10 . b . - Pa g e 65 It e m 10 . b . - Pa g e 66 C ITY OF A RROYO G RANDE HOUSING ELEMENT June 30, 2014 – June 30, 2019 Public Review Draft December 2015 Prepared by Lisa Wise Consulting 983 Osos Street San Luis Obispo, CA 93401 (805) 595-1345 www.lisawiseconsulting.com ATTACHMENT 5 Item 10.b. - Page 67 City of Arroyo Grande 2014-2019 Housing Element 3 City Council Jim Hill, Mayor Barbara Harmon, Mayor Pro Tem Jim Guthrie Tim Brown Kristen Barneich Planning Commission Lan George, Chair John Keen, Vice Chair Glenn Martin John Mack Terry Fowler-Payne Department of Community Development Planning Division Teresa McClish, Community Development Director Kelly Heffernon, Associate Planner Matt Downing, Associate Planner Item 10.b. - Page 68 City of Arroyo Grande 2014-2019 Housing Element 4 TABLE OF CONTENTS CHAPTER 1 – INTRODUCTION ...................................................................................................................... 9 1.1 PURPOSE ...................................................................................................................................................... 9 1.2 RELATIONSHIP TO CITY GENERAL PLAN ......................................................................................................... 10 General Plan Consistency ................................................................................................................................... 10 1.3 ORGANIZATION OF HOUSING ELEMENT ......................................................................................................... 11 1.4 PUBLIC PARTICIPATION ................................................................................................................................ 11 CHAPTER 2 – GOALS, POLICIES, PROGRAMS AND QUANTIFIED OBJECTIVES....................................... 11 2.1 HOUSING ELEMENT GOALS, POLICIES AND PROGRAMS ................................................................................. 11 Goal A –Housing for All Income Groups within the Community .................................................................. 12 Goal B – Affordable Housing .............................................................................................................................. 19 Goal C – Identify Funding for Extremely Low, Very Low, and Low-Income Housing ................................ 21 Goal D – Encourage Diverse Housing Stock .................................................................................................... 23 Goal E – Regulate Condominium Conversions ............................................................................................... 23 Goal F – Inclusionary Housing ............................................................................................................................. 24 Goal G – Mitigate Governmental Constraints ................................................................................................. 26 Goal H – Housing Conservation and Rehabilitation ....................................................................................... 28 Goal I – At Risk Unit Preservation ........................................................................................................................ 29 Goal J – Special Needs Housing ........................................................................................................................ 31 Goal K – Housing for the Homeless .................................................................................................................... 33 Goal L – Housing for Persons with Disabilities ................................................................................................... 36 Goal M – Energy Conservation .......................................................................................................................... 38 Goal N – Equal Opportunity and Fair Housing ................................................................................................. 39 Goal O – Public Participation ............................................................................................................................ 40 Goal P - Housing Element Consistency ............................................................................................................ 41 2.2 SUMMARY OF QUANTIFIED OBJECTIVES ........................................................................................................ 43 CHAPTER 3 – BACKGROUND INFORMATION ........................................................................................... 44 3.1 INTRODUCTION ............................................................................................................................................ 44 3.2 DEMOGRAPHIC OVERVIEW ......................................................................................................................... 47 Population Trends ................................................................................................................................................. 47 Household Data .................................................................................................................................................... 49 Incomes .................................................................................................................................................................. 50 Employment ........................................................................................................................................................... 51 3.3 HOUSING CHARACTERISTICS ........................................................................................................................ 53 Types of Housing ................................................................................................................................................... 53 Vacancy Rates ...................................................................................................................................................... 53 Overcrowded Units ............................................................................................................................................... 55 Age of Housing Units............................................................................................................................................. 55 Condition of Units .................................................................................................................................................. 56 3.4 HOUSING AFFORDABILITY ............................................................................................................................. 57 Housing Prices ........................................................................................................................................................ 57 Rental Unit Rates ................................................................................................................................................... 58 Affordability Thresholds ........................................................................................................................................ 59 Overpayment ........................................................................................................................................................ 60 Long-Term Affordability ........................................................................................................................................ 60 3.5 SPECIAL HOUSING NEEDS GROUPS .............................................................................................................. 61 Elderly/Senior Households .................................................................................................................................... 61 Families with Female Heads of Households ..................................................................................................... 62 Large Families/Households .................................................................................................................................. 62 Low and Extremely Low-Income Households .................................................................................................. 63 Farmworker Households ....................................................................................................................................... 64 Item 10.b. - Page 69 City of Arroyo Grande 2014-2019 Housing Element 5 Persons with Disabilities ........................................................................................................................................ 65 Homeless ................................................................................................................................................................ 68 Attainable Housing ............................................................................................................................................... 68 3.6 AT RISK HOUSING UNITS ............................................................................................................................... 69 CHAPTER 4 - HOUSING RESOURCES ......................................................................................................... 71 4.1 REGIONAL HOUSING NEEDS DETERMINATIONS .............................................................................................. 71 4.2 2014-2019 REGIONAL HOUSING NEEDS ALLOCATION ................................................................................. 72 4.3 LAND AVAILABILITY ...................................................................................................................................... 75 Vacant Land .......................................................................................................................................................... 77 Second Units .......................................................................................................................................................... 77 Underutilized Sites ................................................................................................................................................. 77 4.4 INFRASTRUCTURE RESOURCES ....................................................................................................................... 88 4.5 FINANCIAL RESOURCES ................................................................................................................................ 90 CHAPTER 5 HOUSING CONSTRAINTS ........................................................................................................ 95 5.1 GOVERNMENTAL CONSTRAINTS ................................................................................................................... 95 5.2 ENVIRONMENTAL CONSTRAINTS AND ENERGY CONSERVATION .................................................................... 115 Energy Conservation .......................................................................................................................................... 117 5.3 NON-GOVERNMENTAL CONSTRAINTS ........................................................................................................ 120 CHAPTER 6 REVIEW OF THE PREVIOUS HOUSING ELEMENT .................................................................. 123 6.1 EVALUATION OF 2007-2014 HOUSING ELEMENT PROGRAMS ...................................................................... 123 APPENDIX A ............................................................................................................................................. 137 BIBLIOGRAPHY ......................................................................................................................................... 137 Item 10.b. - Page 70 City of Arroyo Grande 2014-2019 Housing Element 6 LIST OF TABLES Table 2-1 Quantified Objectives By Income Group ................................................................................................... 43 Table 3-1 Trends In Population Growth ......................................................................................................................... 47 Table 3-2 Trends In Population Age ............................................................................................................................... 48 Table 3-3 Tenure By Age Of Householder ..................................................................................................................... 49 Table 3-5 Trends In Household Income ......................................................................................................................... 51 Table 3-6 Trends In Employed Persons 16 Years And Older ....................................................................................... 52 Table 3-7 Industry Profile .................................................................................................................................................. 52 Table 3-8 Trends In Housing Type.................................................................................................................................... 53 Table 3-9 Vacant Units By Type, 2010 ............................................................................................................................ 54 Table 3-10 Vacancy Rates .............................................................................................................................................. 54 Table 3-11 Overcrowding By Tenure.............................................................................................................................. 55 Table 3-12 Year Structure Built ........................................................................................................................................ 56 Table 3-13 Market Rental Rates By Unit Type ............................................................................................................... 58 Table 3-14 San Luis Obispo County Housing Affordability ......................................................................................... 59 Table 3-15 Households Overpaying For Housing ......................................................................................................... 60 Table 3-16 Senior Households ......................................................................................................................................... 62 Table 3-17 Housing Problems For Female Head Of Households ............................................................................... 62 Table 3-18 Tenure By Household Size ............................................................................................................................. 63 Table 3-19 Housing Problems For Lower Income Households ................................................................................... 63 Table 3-20 Persons With Disabilities By Age .................................................................................................................. 65 Table 3-20 Developmentally Disabled Persons ............................................................................................................ 67 Table 4-1 Income Group ................................................................................................................................................. 72 Table 4-2 Housing Need Allocation By Income Category ........................................................................................ 72 Table 4-3 Income Limits, County Of San Luis Obispo .................................................................................................. 73 Table 4-4 Approved Projects January 2014-June 2014 .............................................................................................. 74 Table 4-5 City Share Of Regional Housing Need 2014-2019 ...................................................................................... 75 Table 4-6 Remaining Rhna, 2014-2019 .................................................................. 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Table 4-7 Vacant Sites Inventory .................................................................................................................................... 80 Table 4-8 Opportunity Sites Inventory ............................................................................................................................ 82 Table 4-9 Approved Projects 2007-2014…………………………………………………………………………………. 86 Table 4-10 Current and Projected Water Supply……………………………………………………………………… 88 Table 5-1 Urban Land Use Element And Development Code .................................................................................. 97 Table 5-4 Residential Site Development Standards Single-Family Zones .............................................................. 100 Table 5-5 Residential Site Development Standards Multiple Family And Other Zones ....................................... 101 Table 5-6 Residential Site Development Standards Mixed Use Zones ................................................................... 101 Table 5-5 Second Residential Dwellings Development Standards ........................................................................ 107 Item 10.b. - Page 71 City of Arroyo Grande 2014-2019 Housing Element 7 Table 5-6 Schedule Of Typical Fees For Residential Development ........................................................................ 108 Table 5-7 Proportion Of Fee In Overall Development Cost For A Typical Residential Development .............. 110 Table 5-8 Permit Processing Timeline ........................................................................................................................... 111 Table 5-9 Residential Parking Standards ..................................................................................................................... 112 Table 5-10 Constraints On Housing For Persons With Disabilities ............................................................................. 113 Table 5-11 Applications For Loans ............................................................................................................................... 121 Table 6-1 Progress Toward Meeting Goals 2007-2014 .............................................................................................. 123 LIST OF FIGURES Figure 3-1 Regional Location Map ................................................................................................................................ 45 Figure 3-2 South County Location Map ........................................................................................................................ 46 Figure 3-3 Change in Population Age, 2000 to 2010 .................................................................................................. 49 Figure 3-4 Median Home Prices Trend, Arroyo Grande ............................................................................................. 58 Figure 4-1 Housing Opportunity Sites Inventory Map .................................................................................................. 87 Item 10.b. - Page 72 City of Arroyo Grande 2014-2019 Housing Element 9 CHAPTER 1 – INTRODUCTION 1.1 Purpose The purpose of the Housing Element is to identify and provide: a) An analysis of existing and projected housing needs; b) an evaluation of housing constraints, c) a statement of goals, policies, quantified objectives and financial resources; and d) scheduled programs for the preservation, improvement, and development of housing. The State Legislature, in its adoption of planning law, has set forth the following policies toward the provision of housing:  The availability of housing is of vital importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farm workers, is a priority of the highest order.  The early attainment of this goal requires the cooperative participation of governmen t and the private sector in an effort to expand housing opportunities and accommodate the needs of Californians of all economic levels.  The provision of housing affordable to low and moderate-income households requires the cooperation of all levels of government.  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 cooperate with other local governments and the State in addressing regional housing needs. This document is intended to comply with Article 10.6 (as amended) of State Planning Law and to meet the Department of Housing and Community Development (HCD) guidelines for the implementation of Article 10.6. This document, upon adoption, will replace the Housing Element adopted by the City of Arroyo Grande on October 22, 2013, deemed in compliance with state law by the Department of Housing and Community Development (HCD) o n December 5, 2013. The current planning period began June 30, 2014 and will last through June 30, 2019. Item 10.b. - Page 73 City of Arroyo Grande 2014-2019 Housing Element 10 This Housing Element includes all of the following information as required by State law:  Specific goals, policies, and measurable programs.  Information about the existing housing stock, covering such items as the amount, type, cost, tenure, and structural conditions of the units. Other areas of concern include overcrowding and the needs of special subgroups of the population.  An analysis of potential barriers to housing production, including both governmental and non-governmental constraints.  Information about energy conservation opportunities for housing.  A summary of the past housing efforts and an analysis of their success or failure. 1.2 Relationship to City General Plan Housing elements are one of seven elements of the General Plan that every California city and county is required by State law to prepare. Under State law, a General Plan must function as an integrated, internally consistent and compatible statement of values. The housing, land use and circulation elements form the heart of a community strategy to promote orderly growth and provide housing for all economic segments. State law is more specific about the content of housing elements than any other portion of the general plan. The housing element is also the only part of the general plan that is subject to mandatory deadlines for periodic updates and is the only element that is legally subject to review and “certification” by the State. General Plan Consistency The City’s Land Use Element of the 2001 General Plan designates the sites noted in this Housing Element for residential purposes at densities consistent with the goals of providing housing affordable to a wide range of incomes. The Housing Element has been reviewed for consistency with the City’s General Plan and is consistent with the policy direction the in the Plan. As portions of the General Plan are amended in the future, the Housing Element will be reviewed to ensure internal consistency. Due to the passage of AB 162 relating to flood protection, the City may be required to amend the Safety and Conservation Elements of the General Plan. If amendments are needed the Housing Element will be amended to be consistent with the Safety and Conservation Elements. Item 10.b. - Page 74 City of Arroyo Grande 2014-2019 Housing Element 11 1.3 Organization of Housing Element As noted above, the intent of this Housing Element update is to meet the statutory requirements of State housing law. Chapter 1 provides a brief overview of the laws and its relationship to the General Plan. Chapter 2 is the heart of the document, setting forth all the goals, policies, programs and objectives for housing in Arroyo Grande. Chapter 3 describes relevant demographics concerning housing needs and issues in the City, while Chapter 4 discusses the regional housing needs and provides an overview of the City’s land availability and public services. Chapter 5 analyzes the constraints to housing development, and Chapter 6 reviews the past housing efforts as proposed in the 2013 Housing Element. 1.4 Public Participation Housing issues affect the entire community, including residents, employers, and the public and private sectors. The public participation requirement of the housing element law presents an opportunity to engage constituents in a discussion, defining overall housing needs and constraints, as well as problems and the creation of solutions. The inclusion of community stakeholders in the housing element public participation process helps ensure appropriate housing strategies are more efficiently and effectively developed, implemented and evaluated. [This section to be completed after Planning Commission and City Council consideration of the Public Review Draft Housing Element]. CHAPTER 2 – GOALS, POLICIES, PROGRAMS AND QUANTIFIED OBJECTIVES 2.1 Housing Element Goals, Policies and Programs State law requires that the Housing Element contain a “statement of the community’s goals, policies, programs and quantified objectives relative to the maintenance, improvement, and development of housing”. This Chapter describes the proposed goals, policies, and programs of the Housing Element for the City of Arroyo Grande. Goals refer to general statements of purpose, and indicate a direction the City will take with respect to the identified housing problems. Policies are statements of the City’s intent regarding the various housing issues identified, and provide a link between the goals and the programs. Programs are steps to be taken to implement the policies and achieve the quantified Item 10.b. - Page 75 City of Arroyo Grande 2014-2019 Housing Element 12 objectives. Quantified Objectives refer to the number of units that are expected or estimated to be constructed, conserved or rehabilitated during the time frame of the Housing Element, June 2014 to June 2019 (not all programs have quantified objectives). Goal A –Housing for All Income Groups within the Community Provide a continuing supply of affordable housing to meet the needs of existing and future Arroyo Grande residents in all income categories. Policies: A.1. The City shall adopt policies, programs, and procedures to attempt to meet the present and future needs of residents of the City, and to aim at providing the ir fair share regional housing need allocated for each income classification, within identified governmental, market, economic and natural constraints. A.2. The City shall continue to utilize the following incentives for the production of affordable housing: a) allowing secondary dwelling units under specified criteria; b) allowing manufactured housing on legal parcels in all residential zones; c) allowing density bonuses for very low and low-income housing, and senior housing projects. A.3. The City shall give priority to processing housing projects that provide for affordable housing, and lower development impact fees shall be charged as an incentive for low, very low, and extremely low-income housing. A.4 The City shall establish minimum residential densities that are no lower than 75 percent of the maximum densities allowed in each multi-family residential zone, with exceptions made for properties with significant environmental constraints. A.5. The City shall encourage housing compatible with commercial and office uses and promote “mixed use” and “village core” zoning districts to facilitate integration of residential uses into such areas. A.6 Where circumstances warrant, the City will work with mobile home owners to relocate mobile homes if the City seeks to modify a portion or all of a mobile home park for economic development purposes. Item 10.b. - Page 76 City of Arroyo Grande 2014-2019 Housing Element 13 A.7. The City will continue to maintain a zoning district for mobile home and manufactured home park uses. A.8. The City may annex land on the urban edge to promote orderly growth and the preservation of open space. A.9. The City shall continue to enable and encourage multiple-family, rental apartments, senior, mobile home, and special needs housing in appropriate locations and densities. These multiple family residential alternative housing types tend to be more affordable than prevailing single-family residential low and medium density developments. A.10. The City shall review and revise its development regulations, standards, and procedures to encourage increased housing supply as needed. A.11. The City shall continue to utilize and expand the Density Bonus program to encourage affordable housing supply. A.12. The City shall establish a system to inventory vacant and underutilized land. A.13. The City shall pursue adequate water sources and conservation programs to accommodate projected residential development. A.14. The City shall promote infill housing opportunities through an attainable housing program. A.15. The City shall pursue program assistance for first-time home buyers. Programs: A.1-1. The City shall establish a five-year schedule of actions to implement the goals and policies of the Housing Element. Responsible agency/department: Community Development Department Item 10.b. - Page 77 City of Arroyo Grande 2014-2019 Housing Element 14 Timeframe: Ongoing – implemented over the life of the Housing Element Funding: General Fund Expected Outcome: Timeline for implementing the programs outlined in the Housing Element Quantified Objective: n/a A.1-2. The City shall report annually on its progress in meeting its fair share housing targets, and provide the collected information to the Department of Housing and Community Development (HCD), development community, and non- profit housing developers. HCD provides specific instructions and a template for the annual report. Responsible agency/department: Community Development Timeframe: Annually – due to HCD in April Funding: General Fund Expected Outcome: Annual assessment and reporting on progress meeting Housing Element housing targets and implementation of programs Quantified Objective: n/a A.1-3. The City shall amend the Development Code to revise the requirements for the Traffic Way Mixed Use District to remove the limitation of only live-work residential uses. A mix of residential use types shall be allowed consistent with all of the mixed use zoning districts (except the Industrial Mixed Use District). The Development Code shall also be amended to allow residential projects at densities up to 20 units per acre in the Traffic Way Mixed Use District. Responsible agency/department: Community Development Timeframe: Within 1 year of Housing Element adoption Funding: General Fund Expected Outcome: Development Code amendment Item 10.b. - Page 78 City of Arroyo Grande 2014-2019 Housing Element 15 Quantified Objective: 10 moderate-income units, 10 above moderate-income units A.2-1. The City shall continue to encourage and publicize on the City’s website the secondary dwelling program to increase public awareness. Responsible agency/department: Community Development Timeframe: Ongoing Funding: General Fund Expected Outcome: Expected outcome is continued consistent production of secondary units as an affordable housing alternative Quantified Objective: 5 units/year during the planning period. Total of 30 low-income units for the planning period. A.3-1. The City shall amend the Municipal Code to provide incentives for the development of affordable housing projects, including expedited permitting, providing financial assistance through the City’s In-Lieu Affordable Housing Fund, requiring lot consolidation, and providing greater flexibility in development standards. Responsible agency/department: Community Development Timeframe: Within 2 years of Housing Element Adoption Funding: General Fund Expected Outcome: Additional affordable units Quantified Objective: 5 very low-income and 5 low-income units A.3-2. The City shall amend the Development Code to include the definition of “Extremely Low-Income” as defined by Section 50093 of the California Health and Safety Code. Item 10.b. - Page 79 City of Arroyo Grande 2014-2019 Housing Element 16 Responsible agency/department: Community Development Timeframe: Within 1 year of Housing Element adoption Funding: General Fund Expected Outcome: Development Code amendment Quantified Objective: n/a A.3-3. The City shall amend the Development Code to provide additional incentives specific for extremely low-income housing projects. Incentives may include flexible standards for on- and off-site improvements such as reduced parking requirements, reduced curb, gutter, and sidewalk requirements; reduced or deferred water and/or sewer connection fees; development review and permit streamlining procedures; or financial incentives and assistance. Responsible agency/department: City Manager/Administration and Community Development Timeframe: Ongoing Funding: General Fund Expected Outcome: Draft program or ordinance to incentivize and/or streamline permitting and procedures for extremely low-income housing developments Quantified Objective: 2 extremely low-income units A.10-1. To facilitate affordable housing, the City shall comply with State Density Bonus Law. The City shall update Development Code Chapter 16.82 to comply with AB 2280. The City will continue to update Chapter 16.82 on an ongoing basis to comply with any future updates to State Density Bonus law (Government Code Section 65915) as well as evaluate proposed Development Code amendments to assess whether they pose any constraints to developer utilization of density bonuses. Responsible agency/department: Community Development Item 10.b. - Page 80 City of Arroyo Grande 2014-2019 Housing Element 17 Timeframe: Amend Development Code Chapter 16.82 to comply with AB 2280 – Within 1 year of Housing Element adoption; Assess Development Code Amendments - Ongoing Funding: General Fund Expected Outcome: City-initiated Development Code Amendments Quantified Objective: n/a A.10-2. The City shall evaluate and amend the Planned Unit Development (PUD) Permit procedures in Development Code Section 16.16.060 to provide more predictable options for small lot infill projects in the City’s Residential land use designations. Responsible agency/department: Community Development Timeframe: Within 2 year of Housing Element adoption Funding: General Fund Expected Outcome: Improve the requirements and standards for the PUD process Quantified Objective: 10 moderate and 10 above moderate-income units A.10-3. To encourage higher densities and reduce constraints to multi-family housing production, the City shall amend the Development Code to allow densities up to 20 du/ac in the Office Mixed Use (OMU) District for 100% multi-family housing projects with a Minor Use Permit (MUP) subject to design review through the Architectural Review Committee. Mixed-use projects will continue to have a maximum allowed density of 20 du/ac. Responsible agency/department: Community Development Timeframe: Within 2 years of Housing Element adoption Item 10.b. - Page 81 City of Arroyo Grande 2014-2019 Housing Element 18 Funding: General Fund Expected Outcome: Remove barrier to construct affordable housing Quantified Objective: n/a A.12-1. The City shall continue to maintain its Geographical Information System (GIS) mapping and planning database inventory of vacant and underutilized “opportunity sites”. Responsible agency/department: Community Development Timeframe: On going Funding: General Fund Expected Outcome: Maintain land availability inventory Quantified Objective: n/a A.14-1. The City shall amend the Development Code to include a definition of the term “Attainable housing.” Responsible agency/department: Community Development Timeframe: Within 2 years of Housing Element adoption Funding: General Fund Expected Outcome: Development Code amendment Quantified Objective: n/a A.15-1. The City shall establish a program to provide assistance to first-time home buyers. Responsible agency/department: Community Development Timeframe: Within 2 years of Housing Element adoption Funding: General Fund; HCD Home Investments Partnerships Program (HOME) Item 10.b. - Page 82 City of Arroyo Grande 2014-2019 Housing Element 19 Expected Outcome: Development of a first-time home buyers program Quantified Objective: n/a Goal B – Affordable Housing Ensure that housing constructed in the City is affordable to all income levels. Policies: B.1. All residential projects that receive additional densities or other City incentives to include affordable housing shall be placed into a City-approved program to maintain the affordability for at least 45(owner-occupied) or 55 years (rental units).Any sale or change of ownership of these affordable units prior to satisfying the year restriction shall be “rolled over” for same amount of years to protect “at risk” units. For rental housing, affordability shall be maintained th rough recorded agreements between a property owner and the City, its Housing Authority, or another housing provider approved by the City. For owner-occupied units, long- term affordability can be maintained through property owner agreements to maintain the designated unit as affordable for the specified period, utilizing a promissory note and deed of trust recorded on the property. B.2. The City shall continue monitoring affordable units to ensure ongoing compliance with the sales limits or rental rates established by agreement between the City and the developer. The City shall continue to take the necessary steps to assure compliance with the regulatory agreement , including consideration of contracting with a housing authority or joining a regional monitoring agency if one is developed. B.4. The City may establish parking districts, or off-site shared parking, and use of in- lieu fees where appropriate to enable additional density. B.5. Affordable housing shall not be concentrated into a condensed, identifiable portion of a development or subdivision but rather dispersed throughout and integrated into the development as determined acceptable considering site constraints, size and design. Item 10.b. - Page 83 City of Arroyo Grande 2014-2019 Housing Element 20 B.6. The City shall continue to regulate the use of existing residences on residentially zoned properties for vacation rentals. Programs: B.1-1. The City shall continue tracking all residential projects that include affordable housing to ensure that the affordability is maintained for at least 45 years for owner-occupied units and 55 years for rental units, and that any sale or change of ownership of these affordable units prior to satisfying the 45 or 55- year restriction shall be “rolled over” for another 45 or 55 years to protect “at- risk” units. Responsible agency/department: Community Development Timeframe: Ongoing – at time of change of ownership Funding: General Fund Expected Outcome: Program to monitor affordable units Quantified Objective: n/a B.2-1. The City may contract with the Housing Authority of San Luis Obispo (HASLO), local non-profit organizations, or a regional monitoring agency for the monitoring of affordable units to ensure compliance with terms of the development agreement. Responsible agency/department: City Manager/Administration and Community Development Timeframe: Ongoing Funding: Fees for service Expected Outcome: Expected outcome is consistent monitoring of affordable units. Quantified Objective: n/a B.6-1. The City shall monitor the loss of permanent workforce housing from vacation rentals and consider modifying the Development Code to adjust for this loss. Item 10.b. - Page 84 City of Arroyo Grande 2014-2019 Housing Element 21 Responsible agency/department: Community Development Timeframe: Ongoing Funding: General Fund Expected Outcome: Program to monitor vacation rentals Quantified Objective: n/a Goal C – Identify Funding for Extremely Low, Very Low, and Low-Income Housing Research and identify various additional financial and other resources to provide extremely low, very low, and low-income housing for current and future residents of the City. Policies: C.1. The City shall establish criterion for allocating financial resources from its In-Lieu Affordable Housing Fund to augment extremely, very low, and low-income housing development. C.2. The City shall consider issuance of bonds to finance extremely, very low, and low- income housing. C.3. The City shall pursue State and federal funds to finance extremely, very low, and low-income housing. C.4. The City shall consider cooperation with non-profit organizations and other developers for loan and/or grant applications to provide extremely, very-low, and low-income housing. Programs: C.1-1. The City shall continue to allocate financial resources to augment extremely low, very low, and low-income housing development based on the financial projection of the In-Lieu Affordable Housing Fund. Responsible agency/department: City Manager/Community Development Timeframe: Ongoing Item 10.b. - Page 85 City of Arroyo Grande 2014-2019 Housing Element 22 Funding: Inclusionary Affordable Housing Trust Fund/Other sources, as identified Expected Outcome: Funding to finance affordable housing Quantified Objective: 3 extremely low, 3 very low, and 20 low-income units C.4-1. The City shall continue to meet with local non-profit and private developers semi- annually or more frequently if opportunities arise, to promote the extremely low, very low, and low-income housing programs outlined in the Housing Element. The City shall direct private housing developers to funding sources(such as federal and State housing grant fund programs and local housing trust funds) to promote affordable housing as outlined in the policies of Goal C. Responsible agency/department: Community Development Timeframe: Semi-annually Funding: General Fund Expected Outcome: Increased awareness of the City’s desire to provide affordable housing and to accommodate affordable housing Quantified Objective: n/a C.4-2. The City shall continue to participate in financial incentive programs established by the San Luis Obispo County Housing Trust Fund, such as a revolving loan program. Responsible agency/department: City staff person Timeframe: Ongoing Funding: General Fund Expected Outcome: Leverage of financial resources to augment development of affordable housing Quantified Objective: Loan(s) provided for 5 very low- income units Item 10.b. - Page 86 City of Arroyo Grande 2014-2019 Housing Element 23 Goal D – Encourage Diverse Housing Stock In order to provide affordable housing, especially for extremely, very-low and low- income households, encourage apartment construction. Policies: D.1. The City shall relax parking standards for apartments containing extremely, very low, low, and/or senior housing. D.2. For the purposes of calculating density, fees and other development standards, an apartment is defined as follows:  A dwelling unit equivalent equals two bedrooms, or more;  A one-bedroom equals 0.75 of unit and is defined as 850 square feet or less;  A studio equals 0.5 of a unit and is defined as 600 square feet or less. Programs: D.1-1. The City shall encourage specific plans for land within its Sphere of Influence that include increased residential capacity for multiple-family development. Responsible agency/department: Community Development Timeframe: On-going, as specific plans are approved Funding: General Fund Expected Outcome: Possible increased land inventory to support affordable housing Goal E – Regulate Condominium Conversions Regulate residential condominium conversions to protect the City’s supply of apartments and to allow more moderately priced for-sale homes. Policies: E.1. Apartments can only be converted and sold as residential condominiums to families earning State-defined very low, low or moderate-income levels, to the extent allowed by law. Item 10.b. - Page 87 City of Arroyo Grande 2014-2019 Housing Element 24 E.2. The City shall set a limit on how many rental units can be converted annually. E.3. To the extent provided by law, the property owner shall give the current residents the first right of refusal to buy the units being converted, provid ed they meet the income guidelines. E.4. Residential condo conversion units shall remain affordable through a 45-year deed restriction. Programs: E.4-1. When necessary, the City shall continue to work with property owners of deed restricted affordable units who need to sell within 45 years of initial sale. When the seller is unable to sell to an eligible buyer within a specified time period, equity sharing provisions are established (as per the affordable housing agreement for the property) whereby the difference between the affordable and market value is paid to the City to eliminate any incentive to sell the converted unit at market rate. Funds generated would then be used to develop additional affordable housing within the City. Responsible agency/department: Community Development Timeframe: Ongoing Funding: General Fund Expected Outcome: Maintaining affordability of deed restricted affordable units Quantified Objective: n/a Goal F – Inclusionary Housing Strengthen the City’s inclusionary housing ordinance to require more affordable units in both residential and commercial development projects. Policies: F.1. The City shall require housing projects greater than six units to meet inclusionary housing requirements by 1)payment of in-lieu fee, 2)on-site construction of affordable units, or 3)dedication of land. The City may require payment of an in- Item 10.b. - Page 88 City of Arroyo Grande 2014-2019 Housing Element 25 lieu fee for housing projects containing up to six units. An inclusionary unit is defined as one that will meet the State’s standards for affordable housing. F.2. An “affordable housing agreement” shall be required for projects subject to the Inclusionary Affordable Housing Ordinance. Programs: F.1-1. The City shall evaluate and consider amending the inclusionary affordable housing requirements in the Development Code (Chapter 16.80)based on experience using the requirements in producing affordable units. Potential changes to the requirements include: 1) consider contracting with a housing management organization to manage deed-restricted affordable units in the City; 2) consider adding incentives to encourage construction of rental units; and 3) investigate extending the income categories served by the inclusionary requirements to extremely low-income households. The City will engage the development community during the evaluation process. Responsible agency/department: Community Development Timeframe: Within 4 years of Housing Element adoption Funding: General Fund Expected Outcome: Amendments to the inclusionary affordable housing requirements Quantified Objective: 2 extremely low, 5 very low, 10 low, and 15 moderate-income units F.1-2. The City shall amend the inclusionary affordable housing requirements in the Development Code (Chapter 16.80)to eliminate inclusion of moderate- income units in the requirements. Responsible agency/department: Community Development Timeframe: Within 2 years of Housing Element adoption Funding: General Fund Item 10.b. - Page 89 City of Arroyo Grande 2014-2019 Housing Element 26 Expected Outcome: Amendments to the inclusionary affordable housing requirements Quantified Objective: n/a F.1-3. The City shall amend the in-lieu fee as called for in the inclusionary affordable housing requirements in the Development Code (Chapter 16.80). Responsible agency/department: Community Development Timeframe: Within 2 years of Housing Element adoption Funding: General Fund Expected Outcome: Inclusionary In-lieu Fee Quantified Objective: n/a Goal G – Mitigate Governmental Constraints Create clearer regulations and streamline the approval process for affordable housing projects. Policies: G.1. The City shall review and periodically amend its Development Code and design review regulations and procedures to streamline permit processing for affordable housing projects and minimize application and development review costs. G.2. The City shall consider preparing a master plan or design guidelines for the East Grand Avenue Corridor with the goals of streamlining the development review process and encouraging economic development. Programs: G.1-1. The City shall work with non-profit organizations to maintain a mailing list of persons interested in development projects containing affordable housing. Agendas for all City meetings related to these projects shall be mailed to persons on the mailing list. The City shall also continue to post the agendas on the City’s website. Item 10.b. - Page 90 City of Arroyo Grande 2014-2019 Housing Element 27 Responsible agency/department: Community Development Timeframe: Ongoing Funding: General Fund Expected Outcome: Increased public awareness of affordable housing projects. Quantified Objective: n/a G.1-2. The City shall encourage construction and/or rehabilitation of housing units for low, very-low, and extremely low income households by developing and implementing incentive-based programs such as fee reductions, fee waivers, flexible development standards, updating the City’s second unit ordinance to reduce barriers to second units development in residential zones, and similar programs. Responsible agency/department: Community Development Timeframe: Ongoing Funding: General Fund Expected Outcome: Increased provision of affordable housing Quantified Objective: 2 extremely low, 2 very low, and 2 low-income units G.1-3. The City shall amend the Development Code to allow development of up to 15 multiple-family attached units in the MF and MFA zoning districts with a Minor Use Permit (MUP) subject to design review through the Architectural Review Committee. Development of over 15 multiple-family attached units in the MF and MFA zoning districts shall require a Conditional Use Permit (CUP). Responsible agency/department: Community Development Timeframe: Within 2 years of Housing Element adoption Funding: General Fund Expected Outcome: Remove barrier to construct affordable housing Quantified Objective: n/a Item 10.b. - Page 91 City of Arroyo Grande 2014-2019 Housing Element 28 Goal H – Housing Conservation and Rehabilitation Conserve and rehabilitate the City’s older stock, particularly to provide affordable housing. Policies: H.1. The City shall encourage private and public financing of affordable housing rehabilitation. H.2. The City shall ensure zoning compatibility when integrating public affordable housing projects into existing residential neighborhoods. All impacts relating to neighborhood stability and quality of life issues shall also be considered. Programs: H.1-1. The City shall continue to coordinate with the San Luis Obispo Housing Authority to maintain and expand Section 8 rental housing assistance to qualified households. Responsible agency/department: Community Development Timeframe: Ongoing, when eligible Funding: General Fund Expected Outcome: Continued affordable housing. Quantified Objective: n/a H.1-2. The City shall develop a program to offer housing developers an alternative to meet affordable housing requirements by contributing some “sweat equity” on projects where existing housing units will be rehabilitated or conserved as affordable as per the City’s Affordable Housing Program. Responsible agency/department: Community Development Timeframe: Within 2 years of Housing Element adoption Funding: General Fund Expected Outcome: Conservation and rehabilitation of existing housing stock Item 10.b. - Page 92 City of Arroyo Grande 2014-2019 Housing Element 29 Quantified Objective: 5 low-income housing units H.2-1. The City shall continue to consider abatement of unsafe or unsanitary structures, including buildings or rooms inappropriately used for housing, contrary to adopted health and safety codes. Where feasible, the City will encourage rehabilitation and allow reasonable notice and time to correct deficiencies. Where necessary and feasible, extremely low, very low and low- income residents displaced by abatement action shall be eligible for relocation assistance, subject to Council approval. Responsible agency/department: Community Development Timeframe: Ongoing Funding: General Fund Expected Outcome: Conservation of existing housing stock Quantified Objective: n/a Goal I – At Risk Unit Preservation Preservation of at-risk units in Arroyo Grande Policies: I.1. The City shall establish a notification procedure to occupants of affordable housing units of conversion to market rate units. I.2. The City shall assist in the preservation of affordable units at risk of conversion to market rate. Programs: I.1-1. Written notice shall be required prior to the conversion of any units for low- income households to market rate units in any of the following circumstances:  The units were constructed with the aid of government funding  The units were required by an inclusionary zoning ordinance  The project was granted a density bonus  The project received other incentives Item 10.b. - Page 93 City of Arroyo Grande 2014-2019 Housing Element 30 The property owner should work with the City and affordable housing developers, such as HASLO, to identify qualified buyers and/or funding prior to conversion. In cases where conversions occur, notice shall at a minimum be given to the following:  The City of Arroyo Grande  State Department of Housing and Community Development  San Luis Obispo Housing Authority  Residents of at-risk units Responsible agency/department: Community Development Timeframe: Ongoing Funding: General Fund Expected Outcome: Preservation of existing affordable units Quantified Objective: n/a I.2-1. The City shall annually monitor the status of affordable housing developments. If any property owners indicate plans to convert affordable units to market rate pricing, or if the City identifies market conditions indicating potential for “at risk” unit conversion, the City will contact qualified non -profit organizations or other agencies and explore opportunities to assist and facilitate the transfer ownership of “at risk” units. Responsible agency/department: Community Development Timeframe: Ongoing Funding: General Fund Expected Outcome: Preservation of existing affordable units Quantified Objective: n/a Item 10.b. - Page 94 City of Arroyo Grande 2014-2019 Housing Element 31 Special Needs Goal J – Special Needs Housing Meet the housing needs of special groups of Arroyo Grande residents, including seniors, persons with disabilities, persons with developmental disabilities, single parents, large families, and farmworkers. Policies: J.1. The City shall encourage and shall seek funding to assist in the development of low and moderate-income senior rentals. J.2. The City shall permit larger group housing for seniors in appropriate multiple-family or mixed-use locations, subject to discretionary review. J.3. The City shall continue to allow small-scale group housing (less than seven persons) in multiple-family residential districts, in accordance with applicable State laws. J.4. The City shall encourage multiple-family housing projects that include a portion of the units with three or more bedrooms to accommodate larger families. J.5. The development of housing for farmworkers shall be encouraged. J.6. Co-housing and similar unconventional housing arrangements shall be considered in appropriate locations subject to review and approval on a case- by-case basis. Programs: J.1-1. The City shall continue to promote housing opportunities for seniors and other special needs groups by identifying sites suitable for senior and transitional housing and considering other incentives to promote senior and transitional housing. Single-room occupancy units (SROs) shall be added to the use tables in the Development Code as allowed in all Mixed-Use zones with a conditional use permit. SROs shall be allowed in the MFVH zone district with a minor use permit. Item 10.b. - Page 95 City of Arroyo Grande 2014-2019 Housing Element 32 Responsible agency/department: Community Development Timeframe: Identifying sites - Ongoing; Development Code Amendments – Within 1 year of Housing Element adoption Funding: General Fund Expected Outcome: Increased housing opportunities for seniors and other special needs groups Quantified Objective: 5 extremely low and 10 very low- income units J.5-1. To encourage farmworker housing, the City will amend the zoning ordinance to identify farmworker housing as a residential use in the use tables. The City Zoning Ordinance will be amended to ensure that permit processing procedures for farmworker housing do not conflict with Health and Safety Code Sections 17021.5, which states that farmworker housing for six or fewer employees should be “deemed a single-family structure with a residential land use designation”, and 17021.6 which states that for "employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single family or household...no conditional use permit, zoning variance, or other zoning clearance shall be required of employee housing of this employee housing that is not required of any other agricultural activity in the same zone”. Responsible agency/department: Community Development Timeframe: Within 1 year of Housing Element adoption Funding: General Fund Expected Outcome: Increased housing opportunities for farmworkers Quantified Objective: 5 very low-income units Item 10.b. - Page 96 City of Arroyo Grande 2014-2019 Housing Element 33 The Homeless Goal K– Housing for the Homeless Reduce or minimize the incidence of homeless in the community. Policies: K.1. The City shall consider joint powers development and cooperation agreements to develop homeless shelters and related services, or participate in the operations and maintenance of countywide or south county regional homeless shelter facilities. K.2. The City shall allow emergency shelters for overnight lodging in appropriate zoning districts as part of the Development Code Update in compliance with State law. Programs: K.1-1. The City shall continue to participate in the South San Luis Obispo County working group cooperating with other cities, the county and other agencies in the development of programs aimed at providing homeless shelters and related services. Responsible agency/department: Community Development/City Manager Timeframe: Ongoing Funding: General Fund Expected Outcome: Continued cooperation in providing homeless shelter and services Quantified Objective: n/a K.2-1. The City shall amend the Development Code to allow emergency shelters without a conditional use permit or other discretionary permits in appropriate locations in compliance with SB 2, the “Fair Share Zoning” law. The Development Code amendment shall include a definition for “emergency Item 10.b. - Page 97 City of Arroyo Grande 2014-2019 Housing Element 34 shelter.” Emergency shelters are currently not allowed in commercial mixed use districts, and are allowed through the Conditional Use Permit process in the Condominium/Townhouse (MF), Apartments (MFA) and Multifamily Very High Density (MFVH) residential districts. The Development Code shall be updated to permit emergency shelters by right in at least one zone or site. Potential zones include the Industrial Mixed-Use (IMU) and Highway Mixed-Use (HMU) districts. These commercial districts have sufficient capacity to house emergency shelters with approximately 18 acres of vacant or underutilized land available. The IMU district has several large parcels totaling almost 13.5 acres with ten (10) acres that are currently used as storage and/or construction yards with small or no permanent structures. The HMU district has less potential, although there are about four acres with a couple of large vacant parcels totaling 1.64 acres. The Development Code can include locational and operational criteria for emergency shelters such as: • Proximity of public transit, supportive services, and commercial services; • Hours of operation; • External lighting and noise; • Provision of security measures for the proper operation and management of a proposed facility; • Measures to avoid queues of individuals outside proposed facility; and • Compliance with county and State health and safety requirements for food, medical, another supportive services provided onsite. Such criteria can act to encourage and facilitate emergency shelters and transitional housing through clear and unambiguous guidelines for the application review process, the basis for approval, and the terms and conditions of approval. The City will solicit input from local service providers and the South San Luis Obispo County working group in the preparation and adoption of the amendment to the Development Code to ensure that development Item 10.b. - Page 98 City of Arroyo Grande 2014-2019 Housing Element 35 standards and permit processing will not impede the approval and/or development of emergency shelters. Responsible agency/department: Community Development Timeframe: Concurrently with Housing Element adoption (per Government Code Section 65583(a)(4)) Funding: General Fund Expected Outcome: Expected outcome is compliance with SB 2 regarding emergency shelters. Quantified Objective: n/a K.2-2. [new] The City shall amend the Development Code to define transitional and supportive housing as residential uses per Section 65582 of the Government Code subject to the same standards that apply to other housing in the same zone. Responsible agency/department: Community Development Timeframe: Within 1 year of Housing Element adoption Funding: General Fund Expected Outcome: Expected outcome is compliance with Housing Element law regarding transitional and supportive housing. Quantified Objective: n/a K.2-3. The City may consider implementing an overnight parking program, or similar program to, for the homeless in appropriate zoning districts. Responsible agency/department: Community Development Timeframe: Within 1 year of Housing Element adoption Funding: General Fund Expected Outcome: Provide approved parking locations for the homeless to sleep Quantified Objective: n/a Item 10.b. - Page 99 City of Arroyo Grande 2014-2019 Housing Element 36 Disabled Persons Goal L– Housing for Persons with Disabilities Ensure that those residents with handicaps or disabilities have adequate access to housing. Policies: L.1. The City shall encourage housing development that meets the special needs of disabled persons, including developmentally disabled individuals, and ensure that all new multiple family developments comply with the handicapped provisions of the California Building Code and ADA. L.2. The City shall ensure, through the design review process for multiple housing projects, that project design, parking locations, pedestrian walkways, and direct access to the housing units accommodates handicapped or disabled access. Programs: L.1-1 The City shall explore models to encourage the creation of housing for persons with disabilities, including developmental disabilities. Such models could include coordinating with the Tri-County Regional Center and other local agencies in encouraging affordable housing projects to dedicate a percent of housing for disabled individuals; assisting in housing development; providing housing services that educate, advocate, inform, and assist people to locate and maintain housing; and models to assist in the maintenance and repair of housing for persons with developmental disabilities. Responsible agency/department: Building Department/Community Development Timeframe: Establish a model program within 2 years of Housing Element adoption Funding: General Fund Expected Outcome: Increased access to housing and housing resources for disabled persons; including information and Item 10.b. - Page 100 City of Arroyo Grande 2014-2019 Housing Element 37 services available for developmentally disabled persons Quantified Objective: 5 low income units L.2-1. The City shall create a policy or amend the Development Code to provide persons with disabilities seeking equal access to housing an opportunity to request reasonable accommodation in the application of City building and zoning laws. Responsible agency/department: Building Department/Community Development Timeframe: Within 1 year of Housing Element adoption Funding: General Fund Expected Outcome: Greater accessibility for disabled persons accommodated through the design review process for discretionary residential projects Quantified Objective: n/a L.2-2. The City will have brochures on universal design available at the Community Development Department front counter. The City will also consider updating the building code to encourage use of universal design in home design. Universal design is based on the precept that throughout life, all people experience changes in their abilities. The goal of universal design is to provide environments that are usable by all people, to the greatest extent possible, without the need for specialization in design and construction and /or facilitate change in occupancy over time. Responsible agency/department: Community Development Timeframe: Develop brochure(s) - within 1 year of Housing Element adoption Funding: General Fund Item 10.b. - Page 101 City of Arroyo Grande 2014-2019 Housing Element 38 Expected Outcome: Greater accessibility for disabled persons accommodated through project design Quantified Objective: n/a Energy Conservation Goal M– Energy Conservation Increase the efficiency of energy use in new and existing homes, with a concurrent reduction in housing costs to Arroyo Grande residents. Policies: M.1. All new dwelling units shall be required to meet current State and local requirements for energy efficiency. The retrofitting of existing units shall be encouraged. M.2. New land use patterns shall encourage energy efficiency. M.3. When feasible, buildings shall be sited on a north-south axis and designed to take advantage of passive solar heating and cooling. Programs: M.1-1. The City shall continue working to implement a water and electrical retrofit program for existing housing units. A plumbing retrofit program was established in 2004, and water conservation rebate programs were established in 2009. The City will continue to work with PG&E and other agencies to establish an electrical retrofit program. Responsible agency/department: Building Department Timeframe: Ongoing Funding: General Fund/PG&E Expected Outcome: Reduce usage of water and electrical resources Quantified Objective: n/a Item 10.b. - Page 102 City of Arroyo Grande 2014-2019 Housing Element 39 M.1-2. Consistent with Measure E-4 of the City’s Climate Action Plan, the City shall establish a program to allow residential projects to receive minor exceptions if they meet 25% of items on the Tier 1 list of the California Green Building Code (Title 24) or 15% of items on the Tier 2 list of that code. Responsible agency/department: Building Department Timeframe: Establish program within 1 year of Housing Element adoption Funding: General Fund Expected Outcome: Encourage energy efficiency in new residential buildings Quantified Objective: n/a Equal Opportunity Goal N– Equal Opportunity and Fair Housing Assure access to sound, affordable housing for all persons, regardless of race, religion, age or sex. Policies: N.1. The City declares that all persons, regardless of race, religion, age, or sex, shall have equal access to sound and affordable housing. Programs: N.1-1. The City will continue to promote the enforcement of policies of the State Fair Employment and Housing Commission, and shall resolve housing discrimination complaints through assistance from HUD, and/or local, regional private fair housing organizations. The City will develop a fair housing program to implement San Luis Obispo County’s Urban County Team’s fair housing program, “Fair Housing Analysis of Impediments” and prepare a brochure that promotes equal housing opportunities and addresses discrimination. The brochure will be available at the Community Development Department and a link to download the brochure will be placed on the City’s website. In Item 10.b. - Page 103 City of Arroyo Grande 2014-2019 Housing Element 40 addition the City shall disseminate information in one or more of the following ways to ensure the public is aware of Fair Housing Law:  Distribute materials to property owners and apartment managers twice a year.  Make public service announcements through multiple media outlets including newspaper, radio, television, and social media to run on a regular basis.  Conduct public presentations with different community groups once or twice a year. Responsible agency/department: All City Departments Timeframe: Ongoing Brochure available within one year of housing element adoption, strategy to implement Urban County Team fair housing program within one year of County Fair Housing Plan adoption. Funding: General Fund Expected Outcome: Dissemination of information at the front counter of all City Departments. Quantified Objective: n/a Housing Element Implementation Goal O– Public Participation Ensure participation of all economic segments of the community in the development of housing policy for Arroyo Grande. Policies: O.1. The City shall encourage the participation of all residents of Arroyo Grande in the development of housing policies for the City. Item 10.b. - Page 104 City of Arroyo Grande 2014-2019 Housing Element 41 O.2. The City shall provide a brief summary of key information about housing-related issues to help ensure widespread notice to all residents. Programs: O.1-1. Prior to any public hearing where the City is considering amending or updating its Housing Element or housing policies, the City will notify all local housing organizations, as well as social service agencies, and post notices at significant locations. Responsible agency/department: Community Development Timeframe: Ongoing Funding: General Fund Expected Outcome: Provide information about housing programs Quantified Objectives: n/a Goal P- Housing Element Consistency Reduce governmental and infrastructure constraints to the improvement and development of housing for people of all income levels. Policy: P.1. Update the Development Code and General Plan to maintain consistency and compatibility between the documents. Program: P.1-1. Following amendment of the General Plan Conservation and Safety Elements to comply with AB 162 related to floodplain mapping, the City will amend the Housing Element if needed for consistency. Responsible agency/department: Community Development Timeframe: Within 1 year of updates of the General Plan Conservation and Safety Elements Funding: General Fund Item 10.b. - Page 105 City of Arroyo Grande 2014-2019 Housing Element 42 Expected Outcome: Consistency between General Plan elements related to floodplain mapping and associated constraints. Quantified Objectives: n/a Item 10.b. - Page 106 City of Arroyo Grande 2014-2019 Housing Element 43 2.2 Summary of Quantified Objectives Quantified objectives estimate the number of units that are planned to be constructed, rehabilitated, and conserved over the planning period. This information is presented in Table 2-1 below. Table 2-1 Quantified Objectives by Income Group Housing Program Quantified Objectives by Income Group Total Extremely Low- Income Very Low- Income Low- Income Moderate- Income Above Moderate- Income Housing Production Program A.1-3. 0 0 0 10 10 20 Program A.2-1. 0 0 30 0 0 30 Program A.3-1. 0 5 5 0 0 10 Program A.3-3. 2 0 0 0 0 2 Program A.10-2. 0 0 0 10 10 20 Program C.1-1. 3 3 20 0 0 26 Program C.4-2. 0 5 0 0 0 5 Program F.1-1. 2 5 10 10 0 27 Program G.1-2. 2 2 2 0 0 6 Program H.1-2. 0 5 0 0 0 5 Program J.1-1. 5 10 0 0 0 15 Program J.5-1. 0 5 0 0 0 5 Program L.1-1. 0 5 0 0 0 5 Totals 14 45 67 30 20 176 Source: City of Arroyo Grande and Lisa Wise Consulting Item 10.b. - Page 107 City of Arroyo Grande 2014-2019 Housing Element 44 CHAPTER 3 – BACKGROUND INFORMATION 3.1 Introduction The City of Arroyo Grande occupies 5.45 square miles (3,388 acres) of land along Highway 101 in southwestern San Luis Obispo County, as shown on Figure 3-1. It is immediately adjacent to the west, southwest and south to urban development within the cities of Pismo Beach and Grover Beach, and the unincorporated community of Oceano, as shown on Figure 3-2. Unincorporated lands adjoin the City to the north, east and south. Residential rural and suburban developments characterize unincorporated areas to the north and southeast of the City, while agricultural uses dominate the Arroyo Grande Valley to the northeast and the Cienega Valley south of the City. Arroyo Grande Creek runs in a generally north-south direction through the eastern portion of the City. This chapter presents and analyzes demographic, population, and housing characteristics that are crucial to understanding the local housing market to accommodate for different housing types for all income levels. Item 10.b. - Page 108 City of Arroyo Grande 2014-2019 Housing Element 45 Figure 3-1 Regional Location Map Item 10.b. - Page 109 City of Arroyo Grande 2014-2019 Housing Element 46 Figure 3-2 South County Location Map Item 10.b. - Page 110 City of Arroyo Grande 2014-2019 Housing Element 47 3.2 Demographic Overview This Section provides information on population trends (population growth, ethnicity, age, and sex), household data (size, tenure, and type of household), income, and employment. Population Trends Population Growth. The City of Arroyo Grande’s population has grown from 3,291 in 1960 to 17,252 in 20101. Population growth during the 1960’s occurred rapidly, some years exceeding 12 percent. In the 1970’s, growth slowed to an average of seven percent over the decade, falling still further in the 1980’s to less than two percent from 1980 to 1990. According to the Census, Arroyo Grande grew 10.2 percent between 1990 and 2000 and 8.8 percent between 2000 and 2010. Current estimates by the San Luis Obispo Council of Governments (SLOCOG) in their 2040 Regional Growth Forecast (2011) project the City’s population to be approximately 20,234 residents by 2040, based upon a compound annual growth rate of 0.57 percent. Table 3-1 compares population growth in Arroyo Grande from 2000 to 2010 to Pismo Beach, Grover Beach, the County of San Luis Obispo, and the State of California. This table indicates that the growth that occurred in Arroyo Grande from 2000 to 2010 was higher than the surrounding communities, but less than the State and County growth. Table 3-1 Trends in Population Growth 2000 2010 Number Change from 1990 Number Change from 2000 Arroyo Grande 15,851 10.2% 17,252 8.8% Grover Beach 13,067 12.1% 13,156 0.7% Pismo Beach 8,551 11.5% 7,655 -10.5% SLO County 246,681 13.6% 269,637 9.3% California 33,871,648 13.8% 37,253,956 10.0% Source: U.S. Census 2000 and 2010 Ethnic Composition. According to the 2010 Census, Arroyo Grande’s population is 15.7 percent Hispanic and 84.3 percent non-Hispanic. Of the non-Hispanic portion, white alone makes up 76.9 percent, with the remaining population being African American, American Indian, and Asian, or Pacific Islander. Item 10.b. - Page 111 City of Arroyo Grande 2014-2019 Housing Element 48 Age and Sex Distribution. Table 3-2 shows that in 2010,28 percent of the population of Arroyo Grande was age 24 years and under, 36 percent of the population between 25 and 54 years, and 35 percent was 55 years or older. The highest percentage in one age category, 20 percent, is in the 65 and older age range, followed by the under 15 age range (17 %).The median age in years is 45. These statistics reflect an older population than the State as a whole, with a higher percentage of those considered seniors (55 or over). However, this is similar to trends in San Luis Obispo County, with the senior population increasing more rapidly than other age groups. The ratio of male to female in the total population for Arroyo Grande is 48 percent male to 52 percent female. Table 3-2 Trends in Population Age 2000 2010 Age Group Number of Persons Percent of Total Number of Persons Percent of Total Percent Change <15 3,067 19% 2,933 17% -4% 15-24 1,685 11% 1,893 11% 12% 25-34 1,513 10% 1,755 10% 16% 35-44 2,468 16% 1,949 11% -21% 45-54 2,370 15% 2,657 15% 12% 55-64 1,526 10% 2,572 15% 69% 65+ 3,222 20% 3,493 20% 8% Total 15,851 100% 17,252 100% 100% Source: U.S. Census 2000 and 2010 Between 2000 and 2010 there was a significant increase in the 55 to 64 age range and a large decrease in the 35 to 44 age range, while all other age ranges remained similar. These trends can be seen in Figure 3-3. Item 10.b. - Page 112 City of Arroyo Grande 2014-2019 Housing Element 49 Figure 3-3 Change in Population Age, 2000 to 2010 Source: U.S. Census 2000 and 2010 Household Data Household Size. According to the 2010 Census the average household size in Arroyo Grande is 2.41, with owner-occupied units averaging 2.42 persons per household and renter-occupied units averaging 2.39 persons per household. The City’s average household size did not change from 2000 to 2010. For comparison purposes, the City’s average household size in 1990 was 2.48. As of 2010, the State of California has a larger household size of 2.90 persons per household, as do the unincorporated areas of the County, which have an average household size of 2.48 persons per household. Tenure by Age of Householder. Table 3-3 shows the occupancy of housing units by age of the householder. Overall, two-thirds of households are owner-occupied, and one-third rent. The 35 to 65 age range is the largest category in both rental and owner-occupied housing units. For householders less than 35 years old, more householders rent than own. The opposite is true for householders over 65 years old. Table 3-3 Tenure By Age of Householder Owner-Occupied Renter-Occupied Totals Number Percent Number Percent Number Percent Householders <35 226 5% 658 27% 884 12% Householders 35-65 2,664 57% 1,250 52% 3,914 55% Householders 65+ yrs 1,796 38% 493 21% 2,289 33% Totals 4,686 66% 2,401 34% 7,087 100% Source: U.S. Census 2010 0% 5% 10% 15% 20% 25% <15 15-24 25-34 35-44 45-54 55-64 65+ 2000 2010 Item 10.b. - Page 113 City of Arroyo Grande 2014-2019 Housing Element 50 Households by Type. According to the 2010 Census, 66 percent of Arroyo Grande’s population lived in family households, a 7.33 percent increase from the year 2000. The remaining 34 percent of households in 2010 were classified as non-family households, 81 percent of which were single persons living alone. Single parent family households, including both male and female head of households, also significantly increased between 2000 and 2010 by 17.62 percent. Table 3-4 Trends in Households 2000 2010 Percent Change in Households Number Percent Number Percent Average Household Size 2.41 2.41 Household Types Family Households 4,350 67% 4,669 66% 7.33% Married 3,561 82% 3,741 80% 5.05% Married w/children 1,423 40% 1,355 36% -4.78% Single Parent household 789 18% 928 20% 17.62% Non-Family Households 2,128 33% 2,418 34% 13.63% Single Households 1,766 83% 1,968 81% 11.44% Total 6,478 100% 7,087 100% 9.40% Source: U.S. Census 2000 and 2010 Incomes According to 2010 Census data, the median income for Arroyo Grande households was $58,725. This is compared to the 2000 median household income ($48,237) in Table 3-5. The median income for the households for the State as a whole in 2010 was $60,883. The per capita income for Arroyo Grande in 2010 was $32,617, compared to $24,311 in 2000. The per capita income for 2010 for the State as a whole was $29,188. Table 3-5 shows income ranges and the number of households in each range. The largest category in Arroyo Grande in 2000 was the $50,000 to $74,999 range (22%).The largest category in 2010 was the $100,000 or more range (25%). Item 10.b. - Page 114 City of Arroyo Grande 2014-2019 Housing Element 51 Table 3-5 Trends in Household Income 2000 2010 Households Percent Households Percent Percent Change in # of Households Less than $10,000 507 8% 258 4% -49.1% $10,000 to $14,999 338 5% 407 6% 20.4% $15,000 to $24,999 693 11% 570 8% -17.7% $25,000 to $34,999 798 12% 713 10% -10.7% $35,000 to $49,999 1,030 16% 1026 15% -0.4% $50,000 to $74,999 1,464 22% 1334 19% -8.9% $75,000 to $99,999 698 11% 996 14% 42.7% $100,000 or more 950 15% 1747 25% 83.9% Total Households 6,478 100% 7051 100% Median Income (All Households) $48,236 -- $58,725 -- Source: U.S. Census 2000 and 2010 Another method to evaluate income is to determine levels of poverty in a community. According to the 2000 Census, 191 families or 4.3 percent in Arroyo Grande were considered below the poverty level. According to 2010 Census data, 212 families or 4.6 percent were considered to be below the poverty level. Employment Table 3-6 provides a breakdown of the employed population 16 years and older by occupation for Census years 2000 and 2010. In 2010, the largest percentage category is that of management, professional, and related occupations (43%), which showed the largest increase since 2000. The second largest category in 2010 is that of sales and office occupations (26%), although there was a decrease in overall number of jobs during the same period..Between 2000 and 2010 there was also a decrease in farming, fishing, and forestry occupations and production and moving categories. Item 10.b. - Page 115 City of Arroyo Grande 2014-2019 Housing Element 52 Table 3-6 Trends in Employed persons 16 years and older Occupation 2000 2010 Number Percent Number Percent Management, professional, and related occupations 2,691 38% 3,460 43% Sales and office occupations 2,130 30% 2,089 26% Service Occupations 1,115 16% 1,603 20% Construction, extraction, and maintenance occupations 612 9% 475 6% Production, transportation, and material moving occupations 599 8% 424 5% Farming, fishing, and forestry occupations 34 1% 0 0 Total 7,181 100% 8,051 100% Source: U.S. Census, 2000 and 2010 Using U.S. Census 2010 data, Table 3-7 shows the number of jobs within the City by industry category. The City’s largest industry is the educational services and health care sector consisting of 1,970 jobs, or 24 percent. Following that is the retail sector supplying 19 percent of the jobs in the City. Table 3-7 Industry Profile Jobs Percent Educational services, and health care and social assistance 1,970 24.5% Retail trade 956 11.9% Professional, scientific, and management, and administrative and waste management services 928 11.5% Arts, entertainment, and recreation, and accommodation and food services 763 9.5% Public administration 673 8.4% Construction 537 6.7% Finance and insurance, and real estate and rental and leasing 510 6.3% Other services, except public administration 444 5.5% Manufacturing 361 4.5% Transportation and warehousing, and utilities 351 4.4% Wholesale trade 218 2.7% Information 176 2.2% Agriculture, forestry, fishing, and hunting, and mining 164 2.0% Total 8,051 -- Source: U.S. Census 2010 Another issue related to employment and residency is the matter of commuting to work. Census data indicates that of the 8,051 employed persons 16 years and over, 6,837 or 85 percent drove to work. Only 37 or 0.4 percent utilized public transportation. The mean travel time to work was Item 10.b. - Page 116 City of Arroyo Grande 2014-2019 Housing Element 53 18.2 minutes. This would indicate that a majority of the City’s working residents are commuting to jobs outside of Arroyo Grande. 3.3 Housing Characteristics This Section provides information on types of housing, vacancy rates, overcrowding, age of units, and housing conditions. Types of Housing Table 3-8 provides a breakdown of the total housing units by type of structure for 2000 and 2010. In 2010, it was estimated that there were 7,769 housing units in the City, an increase of 963 housing units from 2000, which was a 29% increase in the number of housing units added from 1990 to 2000 (747 unit increase). As indicated, the vast majority of the units (76%) in Arroyo Grande are single-family units. From 2007 to 2011, 268 dwelling units have been constructed or approved. Table 3-8 Trends in Housing Type 2000 2010 Number Percent Number Percent Total Housing Units 6,806 100% 7,769 100% Units in Structure 1-unit, detached 4,516 66% 5,296 68% 1-unit, attached 590 9% 639 8% Multiple-Family 2-4 Units 493 7% 367 5% Multiple-Family 5 + Units 654 10% 861 11% Mobile home 544 8% 597 8% Boat, RV, van, etc. 9 0.1% 9 0.1% Source: U.S. Census 2000 and 2010 Vacancy Rates The Census reported 541 vacant units, which is seven percent of the total housing units in the City. The number of vacant units in the City nearly doubled from the 272 vacant units reported in 2000. As shown in Table 3-9, slightly less than half of the vacant units are for seasonal, recreational or occasional use. Table 3-9 shows that 18 percent of the vacant units are for rent. Item 10.b. - Page 117 City of Arroyo Grande 2014-2019 Housing Element 54 Table 3-9 Vacant Units by Type, 2010 Number Percent For rent 100 18% For sale only 90 17% Rented, not occupied 14 3% Sold, not occupied 21 4% For seasonal, recreational, or occasional use 226 42% Other vacant 90 17% Total Vacant Units 541 100% Source: U.S. Census 2010 Vacancy rates are commonly used as an indicator of housing market activity in a given area. The individual vacancy rate for a community theoretically measures the health of the local housing market. The vacancy rate is a percentage of the total housing stock that is vacant and/or available for sale or rent at any one time. Generally, a two percent vacancy rate in units available for owner-occupancy and a six percent rate for rental units are considered desirable to keep prices down and to ensure that units are available to new and relocating residents. Vacancy rates for 2000 and 2010 are shown in Table 3-10. For Arroyo Grande, it was reported that there was a 1.9 percent vacancy rate for owner-occupied units and a 4.0 percent vacancy rate for rental units. In 2000 the vacancy rate was 0.8 percent for owner-occupied units and 2.9 percent vacancy rate for rental units. The 2010 vacancy rate for owner-occupied units is close to the optimal rate described above. However, the vacancy rate for rental units is less than the optimal rate and indicates a shortage of rental housing units in the City. However, this is not an uncommon statistic in the south San Luis Obispo County area. Grover Beach has an overall total unit vacancy rate of 11 percent and San Luis Obispo, seven percent, while Pismo Beach has an extremely high overall vacancy rate of 31 percent. Table 3-10 Vacancy Rates 2000 2010 Optimal Vacancy Rates Owner-occupied 0.8% 1.9% 2.0% Rental Units 2.9% 4.0% 6.0% Overall Total Unit Vacancy 4.0% 7.0% Source: U.S. Census 2000 and 2010 Item 10.b. - Page 118 City of Arroyo Grande 2014-2019 Housing Element 55 Overcrowded Units A common method of measuring overcrowding is to compare the number of persons to the number of rooms in the unit. The Census defines an overcrowded household as one that has more than 1.01 persons per room (not including kitchens and bathrooms), while units with more than 1.5 persons per room are considered severely overcrowded. In Arroyo Grande, the data collected from the 2010 Census shows that 2.1 percent of all occupied units were overcrowded. As shown in Table 3-11 Census data indicates 41 units or 0.5 percent of the total occupied housing units had been between 1.01 and 1.50 occupants per room, and 23 units or 0.3 percent of all units were severely overcrowded at 1.51 occupants or more per room. Table 3-11 Overcrowding by Tenure Occupants Per Room Owner-Occupied Renter Occupied Total Number of Households Percent Number of Households Percent Number of Households Percent 1.00 or less 4,901 99.4% 2,086 98.5% 6,987 99.1% 1.01 – 1.50 20 0.4% 21 1.0% 41 0.6% 1.51 or more 12 0.2% 11 0.5% 23 0.3% Total 4,933 100.0% 2,118 100.0% 7,051 100% Source: U.S. Census 2010 The rate of overcrowding in the City is lower than San Luis Obispo County as a whole, which has a 3.1 percent overcrowding rate (more than 1.01 persons per room), and less than half that of the overcrowding rate for the State of California at 8.0 percent. While the rate may in comparison be lower than many other communities, the incidence of overcrowding should still be considered (64 units).The problem of overcrowding for large families can be addressed by the construction of more affordable larger units. However, overcrowding goes beyond family size to affordability issues. Even single individuals and small families may be affected by overcrowding. Due to limited incomes and high housing costs and rents, they may be forced to double up with extended family members or non-relatives in similar circumstances. Overcrowding will be addressed by promotion and production of more affordable units in the City and regional cooperation on housing issues. Age of Housing Units The age of housing is an important characteristic of its relative condition as older units tend to be in greater need of repair. Many federal and State programs use age of housing to determine potential housing rehabilitation needs. Typically, the useful life of major components of an average quality housing structure ranges from 20 to 30 years for items such as roofing, plumbing, Item 10.b. - Page 119 City of Arroyo Grande 2014-2019 Housing Element 56 landscaping, paving and electrical. When a housing unit is over 30 years old, the replacement or refurbishing of major components is an important factor in the ability of a community to provide safe, decent and sanitary housing. Table 3-12 provides a breakdown of the age of housing units in Arroyo Grande as of the year 2010. In reviewing this table, the largest percentage of the housing units was constructed between 1970 and 1979 (25.4%), followed by units built from 1980 to 1989 (18.8%). This suggests that 74 percent of the housing stock is 20 years or older, while 51 percent is 30 years or older. The table indicates that 293 units were built prior to 1940. However, according to a survey of the housing stock most of the City’s housing is in sound condition (see next section). Condition of Units One of the issues required by State housing element law for discussion and analysis is the condition of the community’s housing stock. The purpose for this is to provide a basis for determining which units are in need of rehabilitation and which units may be beyond feasible repair and determined to be in need of demolition and replacement. One of the guidelines set by the State is that units constructed before 1960 may be eligible for repair and/or rehabilitation to keep those units in the existing housing stock. In order to maintain the historical nature of the community, many older communities like Arroyo Grande have already repaired and/or rehabilitated many of their older units. Based upon the review of Table 3-12, 1,475 or 19 percent of the total housing units in the City were built prior to 1960. While these numbers could represent an estimate of the number of housing units that could be analyzed for rehabilitation need, the 1993 Housing Element survey was conducted to determine the structural condition of housing in Arroyo Grande. The structural Table 3-12 Year Structure Built Year Structure Built Number Percent 2005 or later 358 4.6% 2000 to 2004 776 10.0% 1990 to 1999 886 11.4% 1980 to 1989 1,457 18.8% 1970 to 1979 1,974 25.4% 1960 to 1969 843 10.9% 1950 to 1959 898 11.6% 1940 to 1949 284 3.7% 1939 or earlier 293 3.8% Source: U.S. Census 2010 Item 10.b. - Page 120 City of Arroyo Grande 2014-2019 Housing Element 57 condition of housing units was reported as “sound”, in need of “minor rehabilitation”, “moderate rehabilitation”, “substantial rehabilitation”, or “dilapidated”. The survey utilized a point system to evaluate the housing units in the City. The results of this survey was that 99.3 percent of the 1993 housing units were in “sound” condition, 0.4 percent or 26 units were in need of “minor rehabilitation”, 0.3 percent or 13 units were in need of “moderate rehabilitation” and one unit was in need of “substantial rehabilitation”. No units were determined to be dilapidated. The survey concluded that virtually all housing units were in sound condition and the overall appearance of the City is of well-maintained homes. To update the findings of the 1993 housing survey, City staff conducted a windshield survey of housing units in the older neighborhoods where housing conditions may be an issue. The survey located less than ten units that appear in need of substantial rehabilitation or removal. 16 units that were deemed to be in dilapidated condition were demolished during the period of June 30, 2003 and June 30, 2007. The City has not identified any additional units in need of demolition. 3.4 Housing Affordability One of the key issues facing the provision of housing in the state is affordability. Even with the downturn in the housing market, the ability to acquire safe and sound housing is a major social and economic issue. It is affecting decisions regarding business retention and expansion, commuting distances for employees, as well as the overall quality of life. The housing affordability issue is further complicated by the lack of financial and other resources available to mitigate the current housing situation. The primary issue of housing affordability on the Central Coast is the relationship between household income and the cost of housing. This Section covers housing prices, rental rates, affordability thresholds, overpayment, and long-term affordability issues. Housing Prices According to the 2010 Census, the median value of a home in San Luis Obispo County was $513,900 and $541,100 for Arroyo Grande. Median means a point where 50 percent of housing prices, are below the listed number and 50 percent are above. While these statistics reflect housing prices in 2010, housing prices in San Luis Obispo County and Arroyo Grande have decreased since 2009 (see Figure 3-4). A review of housing prices was conducted for the City and County using median home values through 2012 from the California Item 10.b. - Page 121 City of Arroyo Grande 2014-2019 Housing Element 58 Association of Realtors (CAR) and the U.S Census. Figure 3-4 shows that between 2003 and 2006 median home prices for Arroyo Grande increased by a little over 50 percent, but by 2008 decreased nearly to 2003 prices. In 2009 a small increase in prices occurred and since then there has been a slow decline in price trend. Figure 3-4 Median Home Prices Trend, Arroyo Grande Source: U.S. Census and California Association of Realtors (CAR), 2009 Rental Unit Rates According to the 2008-2012 US Census ACD estimates, the median rent in Arroyo Grande was $1,178 per month. Market rental rates were gathered using Craigslist, an online classifieds website, from June 25 to June 25, 2014. Table 3-13 shows the average market rental rates for each type of unit. Table 3-13 Market Rental Rates by Unit Type Average Median Lowest Highest Studio $ 1,191 $ 1,300 $ 675 $ 1,600 1 BR - Apartment $ 1,051 $ 1,012 $ 895 $ 1,200 2 BR - Apartment $ 1,481 $ 1,450 $ 1,200 $ 1,895 Single Family 1-2 Bedrooms $ 1,200 $ 1,200 $ 1,200 $ 1,200 3-5 Bedrooms $ 2,199 $ 2,122 $ 1,650 $ 3,150 Source: Craigslist, retrieved July 27, 2011 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 San Luis Obispo County Arroyo Grande Item 10.b. - Page 122 City of Arroyo Grande 2014-2019 Housing Element 59 While the above rental analysis involves a limited number of housing units that are available for rent (the number of units listed in each category ranges from two to eight), the data does give a perspective on rents being asked in Arroyo Grande. Market rental rates varied for apartments and single-family residences. The lowest rent found for an apartment was $675, while the highest was $1,895. For apartments, the average asking rent for a studio (including lofts and artist space) was $1,191, for a one-bedroom $1,051, and $1,481 for a two-bedroom. For homes being rented, the average asking rent for a one to two-bedroom unit was $1,200. For a three to five-bedroom unit, the average was $2,199. Affordability Thresholds Affordable rental and sales prices for housing were calculated by the County of San Luis Obispo Planning and Building Department using HCD’s 2014 income limits and are summarized in Table 3-14. The median home price in Arroyo Grande in 2010 was reported as $541,100. As can be seen in Table 3-14, not even a moderate-income household could afford this price. Even though median home prices have declined significantly over the last several years, they still are not affordable for the households who are in the moderate or below moderate-income categories. While they may be able to afford some rental housing, large households, low-income households, and extremely low-income households may still have a difficult time finding decent housing. Table 3-14 San Luis Obispo County Housing Affordability Studio 1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom Maximum Affordable Rent*: Extremely Low- MIIncomeInInco me $404 $462 $520 $578 $624 Very Low- Income $674 $770 $866 $963 $1,039 Low-Income $809 $924 $1,040 $1,155 $1,247 Moderate $1,482 $1,694 $1,906 $2,118 $2,287 Maximum Affordable Sales Price**: Extremely Low $38,000 $47,000 $56,000 $64,000 $71,000 Very Low $79,000 $93,000 $108,000 $122,000 $134,000 Low $119,000 $140,000 $160,000 $180,000 $196,000 Moderate $238,000 $275,000 $312,000 $349,000 $379,000 Item 10.b. - Page 123 City of Arroyo Grande 2014-2019 Housing Element 60 Overpayment Another measure of housing affordability is the percentage of income paid for housing. State housing guidelines consider 30 percent of gross income paid for housing including utilities as the standard affordable level and those households paying 30 percent or more as overpayment. According to the 2010 Census, 1,321 households or 27 percent of the owner-occupied units were paying monthly housing costs of 30 percent or more of their income as shown in Table 3-15. For renter-occupied housing units, 1,038 households or 46 percent paid 30 percent or more for rent compared to household income. Table 3-15 Households Overpaying for Housing Household Income (under $75,000) Owners Renters Total Households Overpaying Percent Households Overpaying Percent Households Overpaying Percent Less than $20,000 277 21% 328 32% 605 26% $20,000 - $34,999 240 18% 367 35% 607 26% $35,000 - $49,999 382 29% 115 11% 497 21% $50,000 - $74,999 422 32% 228 22% 650 28% Total 1,321 100% 1,038 100% 2,359 100% Source: U.S. Census 2010 Long-Term Affordability Affordable housing provided by City incentives is required to be maintained as affordable for at least a period of 45 (owner-occupied) or 55 years (rental units).This issue of long-term affordability is a subject of a number of existing programs that ensure that affordable units maintain their status. Affordability terms are secured by a promissory note and deed of trust, recorded on the property prior to or concurrent with the initial occupancy (for rental units) or sale of property. The promissory note is based on the monetary difference between the initial purchase and the initial appraised value as an “affordability loan” or “silent second” payable to the City. The loan *Notes on Maximum Rent Figures: 1. These rent limits include allowances for utilities as determined by the Housing Authority of the City of San Luis Obispo 2. Rent limits are updated when the State issues its annual update to median incomes, generally in April of each year. ** Notes on Maximum Sales Prices: 1. Homeowner association (HOA) dues are assumed at $150/month 2. Mortgage financing assumed at a fixed rate for 30 years (per HSH Associates) is 4.35% 3. Prices shown are preliminary estimates and may be revised. Round to the nearest 1000th. 4. Actual sales price limits will be determined by the County on a case-by-case basis. Source: County of San Luis Obispo Planning and Building, 2014 Item 10.b. - Page 124 City of Arroyo Grande 2014-2019 Housing Element 61 accrues interest at a rate set by the City when the note is executed, amortized over 45 years. Monthly payments (principal plus interest) on the affordability loan are typically waived as long as eligible residents continue to own and reside in the property. The City of Arroyo Grande does not have an equity-sharing program established. The City’s established priority has been to maintain units as affordable. Therefore, they are only allowed to be sold at market value if the seller is unable to sell to an eligible buyer within a specified time period. In such cases, equity sharing provisions are established within the affordable housing agreement whereby the difference between the affordable and market value is paid to the City to eliminate incentives for conversion to market rate units. It is apparent, based on this data regarding the supply of housing units, including the lack of supply of rental units, and with the projected needs, that the households that appear to be in the greatest need of housing assistance are those of low and very low-income. 3.5 Special Housing Needs Groups This Section reviews the characteristics of households with special housing needs, including elderly or senior households, families with female heads of households, large family households, farmworker households, disabled persons/households, homeless people, and attainable housing. Elderly/Senior Households An analysis of the needs of elderly or senior households or persons is important for four reasons: 1) many elderly have fixed, limited incomes; 2) many elderly persons are “over -housed” (living alone or with two people in a three or four bedroom house); 3) some elderly have mobility and health problems that can create special housing needs; and 4) recent projections indicate an increase in the elderly population in the planning period, both those currently living in the area or those that will be relocating to the area (in addition to data showing an increase in seniors during the previous planning period). According to the 2010 Census, there are a total of 4,686 owner-occupied housing units and 2,401 renter-occupied housing units of which 2,289 are senior households. Table 3-16 represents householders by tenure and age in the City of Arroyo Grande. Item 10.b. - Page 125 City of Arroyo Grande 2014-2019 Housing Element 62 Table 3-16 Senior Households Owner Renter Total Number Percent Number Percent Number Percent Total 65 and older 1,796 38% 493 21% 2,289 32% Total 64 and under 2,890 62% 1,908 79% 4,798 68% Total (all ages) 4,686 100% 2,401 100% 7,087 100% Source: U.S. Census 2010 Families with Female Heads of Households The 2010 Census reported that of the total 7,087 households in the City, there were 653 female- headed households with children and no husband present. This represents 9.2 percent of the total households. Of these households, 388, or 51.8 percent had children less than 18 years of age. Based upon the Census data for incomes in 2010, 101 families with a female householder, no husband present and with related children less than 18 years were reported to be under the poverty level. Table 3-17 Housing Problems for Female head of Households 2010 Number Percent Total households 7087 100% Total female householders 1930 27% Female non-family householder 1277 18% Female family householder, no husband present 653 9% w/ children under 18 330 5% Source: U.S. Census 2010 Large Families/Households Large families can have special housing needs if they cannot find affordable, large housing units then and living conditions may become overcrowded. Table 3-17 shows the total occupied housing units by the number of persons living within each unit. This information is shown for owner-occupied and rental housing. For owner-occupied units, the highest percentage is for a two-person unit (42%).Less than five percent of the owner-occupied households are occupied by five or more persons. For renter- occupied units, the highest percentage is a one-person household (36%).Less than seven percent of the renter-occupied units are occupied by five or more persons. These numbers are generally low compared to the State as a whole, as well as many cities and counties. Item 10.b. - Page 126 City of Arroyo Grande 2014-2019 Housing Element 63 Table 3-18 Tenure by Household Size Owner-Occupied Housing Units Renter-Occupied Housing Units Number Percent Number Percent 1-person household 1,097 23% 871 36% 2-person household 1,989 42% 626 26% 3-person household 643 14% 358 15% 4-person household 621 13% 311 13% 5-person household 223 5% 161 7% 6-person household 66 1% 52 2% 7-or-more person household 47 1% 22 1% Total 4,686 100% 2,401 100% Source: U.S. Census 2010 Low and Extremely Low-Income Households Lower income households (earning 80 percent or less of median household income) generally have higher incidence of housing problems and overpayment (paying 30 percent or more of income for housing costs). Table 3-18 below shows the percentage of low-, very low-, and extremely low-income households with housing problems including overpayment for housing. Extremely low-income households earn 30 percent or less of the median household income. As of 2010, approximately 18 percent of Arroyo Grande households (775 households) had extremely low incomes. Fifty-seven percent of extremely low-income households had housing problems and were overpaying for housing. Of these households, the number of renter and owners was nearly equivalent, at 28 percent and 29 percent respectively. Table 3-19 Housing Problems for Lower Income Households Renters Owners Total Total Percent Total Percent Total Percent Household Income <= 30 % HAMFI (Extremely Low- Income) 405 29% 370 13% 775 18% Any Housing Problems 220 54% 225 61% 445 10% Cost Burden > 30% 215 53% 210 57% 425 10% Cost Burden > 50% 190 47% 160 43% 350 8% Household Income > 30% to <= 50% HAMFI (Very Low- Income) 420 30% 195 7% 615 14% Any Housing Problems 390 93% 130 67% 520 12% Cost Burden > 30% 265 63% 120 62% 385 9% Cost Burden > 50% 155 37% 75 38% 230 5% Item 10.b. - Page 127 City of Arroyo Grande 2014-2019 Housing Element 64 Table 3-19 Housing Problems for Lower Income Households Renters Owners Total Total Percent Total Percent Total Percent Household Income > 50% to <= 80% HAMFI (Low- Income) 360 25% 730 25% 1090 25% Any Housing Problems 330 92% 275 38% 605 14% Cost Burden > 30% 300 83% 435 60% 735 17% Cost Burden > 50% 60 17% 295 40% 355 8% Household Income > 80% to <= 100% HAMFI (Moderate Income) 200 14% 375 13% 575 13% Cost Burden > 30% 200 100% 250 67% 450 10% Cost Burden > 50% 0 0% 125 33% 125 3% Household Income > 100% HAMFI (Above Moderate Income) 30 2% 1,290 44% 1,320 30% Cost Burden > 30% 30 100% 1,075 83% 1,105 25% Cost Burden > 50% 0 0% 215 17% 215 5% TOTAL 1415 100% 2,960 100% 4,375 100% Source: CHAS Databook, 2006 – 2010 ACS Between January 1, 2014 and June 30, 2019 the RHNA estimate for very low-income housing need in Arroyo Grande is 60 housing units. Based on HCD standards, 50 percent of these should be planned for extremely low-income households. Therefore, it is projected that an additional 30 extremely low-income households will be added to the City. Farmworker Households According to the 2010 Census, ACS estimates, there are 164 residents of Arroyo Grande employed in farming, forestry, fishing and hunting or mining operations. Given the location and environment of Arroyo Grande, it is assumed that a majority of those employed in these professions are in the agricultural community. Several studies that have been completed over the past 10 years found that most farmworkers live in seriously substandard conditions. A majority of current farmworkers have families and thus are residents versus migrant workers who reside or work for a period of time in the City but live elsewhere. The actual percent of resident versus migrant workers in this area is unknown. The major issue for resident farmworkers is that they are generally low-income and thus have to compete for housing with other lower income residents. The issue for many migrant workers is that farm employers are not required to provide housing, so the migrants may have to find their own housing, which sometimes is living in their car or in illegal units. The greatest need for migrant Item 10.b. - Page 128 City of Arroyo Grande 2014-2019 Housing Element 65 workers is temporary seasonal housing. This could be in the form of bunk houses on the property where the workers are employed. In summary, farmworkers generally earn low-incomes, live in overcrowded units, and pay a disproportionate share of income for housing. The City is in compliance with Health and Safety Code Sections 17021.5 and 17021.6. Persons with Disabilities The 2012 Census recorded the disability status of the civilian non-institutional population of City residents. Approximately 12 percent of these residents in the City reported as having a disability. The age breakdown can be seen in Table 3-19, showing that the largest percentage (57 %) of the disabled population are 65 years of age or older. Only 3 percent of persons with disabilities reported being under the age of 18. Table 3-20 Persons With Disabilities by Age Number Percent Under 18 years 70 3% 18 to 64 years 1,340 64% 65 years and over 1,184 57% Total Civilian Non-institutionalized Population with disabilities 2,082 100% Source: U.S. Census 2012 There are two major problems facing persons with a disability: the need for housing that meets particular physical needs (wheelchair accessible, etc.) and monetary needs. Because of limited job opportunities, many persons with disabilities have incomes below the median. Persons with disabilities living in Arroyo Grande may have varying housing needs depending on the nature and severity of their disability. Persons with physical disabilities generally require modifications to housing units such as wheelchair ramps, elevators, wide doorways, accessible cabinetry, modified fixtures and appliances. If the disability prevents the person from operating a vehicle, then proximity to services and access to public transportation are important. If the physical disability prevents the person from working or limits their income, then the cost of housing and needed modifications can be significant. Because physical handicaps vary, this group rarely gravitates toward a single service organization. This makes estimating the number of persons and specific needs difficult. The physical modification of housing is not necessary to accommodate persons with mental disabilities, but they will generally require special services and monetary support. Since jobs and income are often limited, affordable housing is important. Issues related to those with a mental disability would suggest that there is a need for apartment Item 10.b. - Page 129 City of Arroyo Grande 2014-2019 Housing Element 66 or other housing complexes that are reserved or designed to accommodate persons requiring extra assistance. If the person is unable to drive, access to public transportation is very important. Although the City has not adopted a reasonable accommodation policy or ordinance for persons with disabilities, the City has mechanisms, which allow for the modification of standards and retrofitting to increase the suitability of homes to accommodate persons living with special needs, including those with disabilities. In addition, the City proposes Program L.2-1 to create a reasonable accommodation policy for the City. Developmentally Disabled According to Section 4512 of the Welfare and Institutions Code a "developmental disability" is defined as a disability that originates before an individual attains age 18 years, continues, or can be expected to continue, indefinitely, and constitutes a substantial disability for that individual which includes mental retardation, cerebral palsy, epilepsy, and autism. This term also includes disabling conditions found to be closely related to mental retardation or to require treatment similar to that required for individuals with mental retardation, but does not include other handicapping conditions that are solely physical in nature. Many developmentally disabled persons can live and work independently within a conventional housing environment; however, more severely disabled individuals require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the developmentally disabled is the transition from the person’s living situation as a child to an appropriate level of independence as an adult. The California Department of Developmental Services (DDS) provided community-based services to about 279,000 persons in 2014 with developmental disabilities and their families through a statewide system of 21 regional centers, four developmental centers, and two community-based facilities. The Tri-County Regional Center (TCRC) is one of 21 regional centers in California that provides point of entry to services for people with developmental disabilities in Ventura, Santa Barbara, and San Luis Obispo Counties. The center is a private, non-profit community agency that contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families. In 2012, TCRC provided services to Item 10.b. - Page 130 City of Arroyo Grande 2014-2019 Housing Element 67 approximately 11,600 persons in the Tri-County area. Table 3-20 shows the number of individuals served by TCRC in the 93420 zip code. While this is the primary zip code for the City, the 93420 zip code includes unincorporated areas within the County. Table 3-20 Developmentally Disabled Persons Location 0-14 years 15-22 years 23-54 years 55-65 years 65+ years Total 93420 44 41 82 24 3 194 Arroyo Grande 44 41 82 24 3 194 Source: Tri-County Regional Center, 2014 There are a number of housing types appropriate for people living with a development disability: rent subsidized homes, licensed and unlicensed single-family homes, inclusionary housing, Section 8 vouchers, special programs for home purchase, and HUD housing. Similar to the needs of disabled residents and households mentioned above, the design of housing-accessibility modifications, the proximity to services and transit, the availability of group living opportunities, and consideration of the affordability of housing for people with disabilities living on a fixed income represent some of the types of considerations that are important in serving this need group. Incorporating ‘barrier-free’ design in all, new multifamily housing (as required by State and Federal Fair Housing laws) is especially important to provide the widest range of choices for disabled residents. There are local and county programs and services which provide housing and living assistance for disabled residents. Locally the Housing Authority of San Luis Obispo administers the Housing Choice Voucher program, commonly known as Section 8, which provides long-term rental assistance for families with children, elderly and disabled individuals, as well as families with members who are disabled. Additionally, Transitions-Mental Health Association (TMHA), a nonprofit organization serving San Luis Obispo County, provides housing assistance to disabled individuals. HASLO and TMHA have partnered over the years to provide case management services to homeless/disabled individuals. In order to assist in the housing needs for persons with disabilities the City will continue to implement program L.1-1 to encourage creation of housing for persons with disabilities. Suggested models include coordinating housing activities and outreach with the Tri-County Regional Center and other local agencies, encouraging housing providers to designate a portion of new affordable housing developments for persons with disabilities, especially persons Item 10.b. - Page 131 City of Arroyo Grande 2014-2019 Housing Element 68 with developmental disabilities, and assisting individuals in locating and maintaining suitable housing. Homeless The 2013 San Luis Obispo County Homeless Census and Survey provided a “point-in-time” survey of the homeless population in South San Luis Obispo County, which includes the cities and communities of Pismo Beach, Grover Beach, Oceano, Arroyo Grande, and Nipomo. The homeless population in South County represents 38 percent of the total homeless population in the County, which was reported at 2,186 people. Of the total homeless population in San Luis Obispo County, 88 percent were over the age of 18. Past studies have indicated that the majority of homeless persons are found within the City of San Luis Obispo, probably as a result of the fact that most services for the homeless are centered there. Observations from service providers and law enforcement indicate that a large share of the homeless in South County reside in the beach towns. Since 1989, the Community Action Partnership of San Luis Obispo County’s (CAPSLO) Homeless Services program has been working to meet the needs of the homeless in the County, offering emergency housing, on-site information, referral services and assistance in finding permanent housing. This organization operates the Maxine Lewis Memorial shelter in San Luis Obispo, which provides 50 beds nightly year-round. An additional 25 to 35 beds are added through the Interfaith Coalition for the Homeless, bringing the overflow total to more than 25,000 shelter nights provided per year. There are several other organizations in the County that provide services and housing for the homeless, including several churches. The City provides many services for the homeless that includes mental health services, drug an d alcohol services and student services. These resources are provided by the City as well as by the support of the Homeless Services Oversight Council of San Luis Obispo County. San Luis Obispo County has also incorporated a 10-year Plan to End Homelessness that was completed in 2008. This plan includes goals in housing attainability, ongoing services for the homeless and prevention action to divert individuals from becoming part of the cycle of homelessness. Attainable Housing Housing has become out of reach for most workers in San Luis Obispo County and the City of Arroyo Grande. This has made it very difficult for the employers of many industries to recruit and retain employees. It has also caused the situation that many employees must commute from Item 10.b. - Page 132 City of Arroyo Grande 2014-2019 Housing Element 69 varying locations, causing traffic congestion and related air quality impacts. Additionally, housing is out of reach for many others in lower income categories including seniors, single mothers, those with special needs and others as discussed earlier in this chapter. The City of Arroyo Grande has identified the provision of housing to those unable to afford market-rate housing prices as a priority and a policy and program are included in this Housing Element to establish an “Attainable Housing” program in the City. Defining “Attainable Housing” will be part of this effort. The City envisions assessing whether proposed projects include “Attainable Housing” as applications are submitted. Elements considered part of “Attainable Housing” are anticipated to include but will not be limited to:  Projects with a high percentage of rental units  Projects including single-room occupancy units (see also Program J.1-1)  Projects in mixed-use districts  Projects that include universal design elements (see also Program L.2-2)  Infill projects, and  Projects that include elements that exceed the mandatory California Green Building Code Standards in Title 24 Incentives available for “Attainable Housing” projects are anticipated to include but will not be limited to:  Reduced parking standards  Setback reductions  Impact fee reductions or waivers 3.6 At Risk Housing Units Existing affordable housing units in the City, including those available to low and very low- income families that were created through government subsidies, may be eligible to convert to market rate units. Such conversions may jeopardize a significant amount of the existing affordable housing stock. Housing elements are required to: Item 10.b. - Page 133 City of Arroyo Grande 2014-2019 Housing Element 70 1) identify those low-income units that may convert to market rate units within 10 years; 2) analyze the costs of preservation of these “at-risk” units versus replacing them; 3) identify resources for preservation; 4) set objectives for preserving at risk-risk units; and 5) incorporate programs to try to preserve the units as affordable housing. During this reporting period, three of the twenty-nine units restricted to the moderate-income level and two of the six units restricted to the low income level through the City’s inclusionary housing program have also been lost. This loss is largely due to the formula used to determine the maximum allowable sales price. Under the program, when interest rates go down, the maximum affordable sales price goes up. Hence, in recent years, the decrease in the interest rate has created a maximum affordable sales price that exceeds the market rate. Other loss es have been due to foreclosures. However, this situation is expected to stabilize as the housing market recovers and interest rates are normalized. To the extent that subsidized housing units are established in the City in the future, policies and programs shall be identified to ensure that these affordable units may remain available for lower income families . Programs I.1-1 and I.1-2 address situations where affordable units are at risk of converting to market rate. Item 10.b. - Page 134 City of Arroyo Grande 2014-2019 Housing Element 71 CHAPTER 4 - Housing Resources This Chapter evaluates the availability of land and public services in Arroyo Grande to support future residential development. The Chapter also summarizes financial resources available for affordable housing and energy conservation opportunities. 4.1 Regional Housing Needs Determinations State law requires councils of government to prepare Regional Housing Needs Plans (RHNP) for all cities and counties within their jurisdiction. The RHNP for San Luis Obispo County, including the City of Arroyo Grande was prepared by the San Luis Obispo Council of Governments (SLOCOG).The RHNP was adopted by SLOCOG in August 2013 and was subsequently accepted by HCD. The RHNP is intended to assure that adequate sites and zoning exist to address anticipated housing demand during the planning period (June 30, 2014 through June 30, 2019). The RHNP sets targets to ensure the availability of sites to accommodate the housing needs of a wide range of socioeconomic segments of a community. To develop estimates of future housing needs by jurisdiction, SLOCOG evaluated past construction trends, the relationship between job and housing opportunities, public service availability, as well as housing needs provided by the State. SLOCOG, in its preparation of the RHNP, considered the following factors in its distribution of the housing needs to the individual jurisdictions:  SLOCOG goal to increase the housing supply and the mix of housing types, tenure, and affordability in all jurisdictions within the region in an equitable manner in accordance with SLOCOGs Regional Transportation Plan and as envision under SB375.  Concentration of new growth in each jurisdiction’s Target Development Areas.  Each jurisdiction’s employment base and population growth in relation to regional employment and population growth;  The extent to which a jurisdiction’s current income distribution differs from t hat of the regional average;  The HCD determined regional housing needs: and  The capacity of the presently zoned land in the unincorporated County for residential development in the above moderate-income category. Item 10.b. - Page 135 City of Arroyo Grande 2014-2019 Housing Element 72 State law requires that RHNP’s divide the specified housing allocation into four income groups. The groups are defined as percentages of County median income. Table 4-1 displays the criteria for the four income groups. Table 4-1 Income Group Very Low Household income is less than 50% of the county median income. Low Household income is between 50% and 80% of the county median income. Moderate Household income is between 80% and 120% of the county median income. Above Moderate Household income is greater than 120% of the county median income. Source: HCD Income Definitions 4.2 2014-2019 Regional Housing Needs Allocation The total number of dwelling units that needs to be accommodated during the planning period for Arroyo Grande is 242 housing units, as outlined in Table 4-2. The very low and low-income categories make up 40 percent of the housing allocation. Table 4-2 Housing Need Allocation by Income Category Number Percent Share Very Low 60 24.9% Low 38 15.6% Moderate 43 17.6% Above Moderate 101 41.8% Total 242 100% Source: Regional Housing Needs Plan 2013, San Luis Obispo Council of Governments According to HCD, based upon federal income standards, in 2014 the median household income for a family of four in San Luis Obispo County was $77,000. Table 4-3 indicates the income levels for 2014. Item 10.b. - Page 136 City of Arroyo Grande 2014-2019 Housing Element 73 Table 4-3 Income Limits, County of San Luis Obispo Number of Persons in HH 1 2 3 4 5 6 7 8 Extremely low-income $15,850 $18,100 $20,350 $22,600 $24,450 $26,250 $28,050 $29,850 Very low- income $26,400 $30,200 $33,950 $37,700 $40,750 $43,750 $46,750 $49,800 Low-income $42,250 $48,250 $54,300 $60,300 $65,150 $69,950 $74,800 $79,600 Median Income $53,900 $61,600 $69,300 $77,000 $83,150 $89,300 $9,500 $101,650 Moderate Income $64.700 $73,900 $83,150 $92,400 $99,800 $107,200 $114,600 $121,950 Source: State Department of Housing and Community Development, 2014 Over the period from January 2014 to June 2014, 20 primary units, 1 secondary unit, and a 69 unit assisted living facility were constructed or permitted in Arroyo Grande. Table 4-4, below, details the income categories of the approved projects. A total of eight single family residences and one second unit were constructed. The single-family residences are assumed above moderate. The 1 secondary unit was assumed to be low-income based on affordability in the City, current rents, and second unit regulations (See also Tables 3-13 and 3-14).The average market rate for apartments ranges from about $1,051 per month for a one-bedroom apartment to $1,481 per month for a two-bedroom with the lowest priced units ranging from $895 per month to about $1,200 per month. The monthly rent that low-income households can afford ranges from $924 to $1,040, placing many market-rate one-bedroom, two-bedroom and second units in the affordable range for low-income households. In addition, pursuant to Arroyo Grande Municipal Code Section 16.52.150, size limits are placed on second units depending on the zoning district they are in. Given that the 1 constructed secondary units is a one bedroom and less than 850 square feet in size, it is likely rented for less than $1,000 or provided to family members for no rent. The 81 units approved during the planning period included one assisted living project, a new 69- unit assisted living facility (see Table 4-4). These units are not income-restricted and provide food and care; therefore, they are classified as “above moderate”. In addition to the 69-unit assisted living facility, the remaining approved units have been in the above moderate-income category. Item 10.b. - Page 137 City of Arroyo Grande 2014-2019 Housing Element 74 Table 4-4 Approved Projects January 2014-June 2014 ID# Address Very Low Low Moderate Above Moderate Total (added across) 880 Oak Park Blvd. 0 0 0 77 77 228 Le Point Street 0 0 0 1 1 308 Stillwell Drive 0 0 0 1 1 324 Stillwell Drive 0 0 0 1 1 328 Stillwell Drive 0 0 0 1 1 Totals 0 0 0 81 81 Source: City of Arroyo Grande, 2014 Due to the elimination of redevelopment agencies by the State as of December 2011, the City will use funds from the City’s Affordable Housing in -Lieu Fee Program when feasible to finance future affordable housing projects. The City strives to make funding available to local affordable housing non-profit organizations to assist with housing projects when possible. However, the level of funding the City can provide is not sufficient to address direct and associated costs of providing this level of housing without increased State financial assistance. After accounting for permit and construction activity in the period from January 2014 to June 2014, the City has a remaining RHNA of 152 units, 97 of those are very low and low-income (see Table 4-5). Table 4-6 shows the remaining RHNA for the planning period and the vacant land and opportunity sites available for residential development. It is important to note that the City is not responsible for the actual construction of these units. The City is, however, responsible for creating a regulatory environment in which the private market can build units affordable to very low, low, moderate, and above moderate households to meet the City’s allocation . This includes the creation, adoption, and implementation of General Plan policies, development standards, and/or economic incentives to encourage the construction of various types of units. Item 10.b. - Page 138 City of Arroyo Grande 2014-2019 Housing Element 75 As Table 4-6 shows, the City can meet all of its remaining RHNA with available vacant sites. The City has vacant land available to accommodate 219 units. Of these, 129 units are located on higher density sites and can be developed to accommodate the very low and low-income allocation. Additionally, the City has identified opportunity sites and second unit development potential, which provide alternative options and development flexibility and could accommodate over 300 units. Vacant land, underutilized land opportunities, and second unit potential are discussed in Section 4.3 below. 4.3 Land Availability State housing law requires that the housing element provide an inventory of land suitable and available for residential development, including vacant sites and sites having potential for intensification and/or redevelopment. The purpose of this requirement is to identify sites that could accommodate residential development as set forth by the RHNP. This analysis is not a construction quota or an anticipated list of projects that will be constructed, given that the law Table 4-5 City Share of Regional Housing Need 2014-2019 Very Low Low Moderate Above Moderate Total (added across) 2014-2019 RHNA 60 38 43 101 242 Units Constructed/Approved 0 0 0 89 89 Second Units Constructed/Approved 0 1 0 0 1 Remaining 2014-2019 RHNA 60 37 43 12 152 Source: Regional Housing Needs Plan 2013, San Luis Obispo Council of Governments, City of Arroyo Grande Table 4-6 Remaining RHNA, 2014-2019 Very Low Low Moderate Above Moderate Total (added across) Subtotal remaining RHNA 60 37 43 12 152 Vacant Land Inventory1 129 90 219 Total Remaining RHNA 0 0 0 Additional Sites Second Unit Potential 0 12 12 0 24 Opportunity Sites2 139 127 0 51 317 Total Additional Sites 139 139 12 51 341 Notes: 1: Details about these sites are found in Table 4-7 2: Details about these sites are found in Table 4-8 Source: Regional Housing Needs Plan 2013, San Luis Obispo Council of Governments, City of Arroyo Grande Item 10.b. - Page 139 City of Arroyo Grande 2014-2019 Housing Element 76 recognizes that there may be limitations that would affect residential development, as well as the fact that private development and market forces affect the level of housing construction. Following are two tables (Tables 4-7 and 4-8) that provide listings of vacant and opportunity (underutilized) sites available for housing construction, as well as Table 4-9 providing the sites where projects have received entitlements. Figure 4-1 presents a housing opportunity inventory map with locations for the sites discussed in Tables 4-7 through 4-9. The City’s Land Use Element includes a “Mixed Use” land use category that encompasses approximately 85 percent (254 acres) of all the commercially zoned land within the City. The Development Code was updated in 2007 to implement the changes in the Land Use Element. New development standards for the Village Core Downtown (VCD) and Village Mixed Use (VMU) districts have been established including allowable densities of up to 15 dwelling units per acre (densities were not previously established in the superseded Village Commercial district). The City also rezoned properties within the General Commercial (GC) district to Gateway Mixed- Use (GMU), Fair Oaks Mixed-Use (FOMU), and Traffic Way Mixed-Use (TMU) depending on location. Properties in the Office, Industrial and Highway zoning districts have been rezoned to Office Mixed-Use (OMU), Industrial Mixed-Use (IMU), and Highway Mixed-Use (HMU), respectively. New development standards for these mixed-use districts have been established with maximum densities ranging from 15 to 25 dwelling units per acre, and minimum densities set at 75 percent of maximum for certain districts. Consequently, most of the land (the exception is the Regional Commercial zoning district) within the City is zoned for some level of residential development with minimum densities. This is a significant change from what was allowed and analyzed in the City’s 2003 Housing Element. The City recognizes that the State requires land zoned at a minimum of 20 units per acre to meet the very low and low income housing allocation. With the flexible density for mixed-use zoned areas the City is able to exceed the 20 units per acre, and in some areas only 10 percent of the site is required to be commercial, allowing the remaining site to be developed as residential. Recent high-density residential projects in the mixed-use zone include the Pike and Elm project (22 du/ac) which was considered mixed-use due to its location adjacent to a commercial use although the site is fully residential, and a People Self Help Housing (PSHH) project currently under construction on East Grand Avenue built to 22 units per acre providing 36 low and very low-income units and is located in the Gateway Mixed-Use Zone. The City has demonstrated Item 10.b. - Page 140 City of Arroyo Grande 2014-2019 Housing Element 77 that it is flexible in approving higher density residential projects. With the increase of allowable densities as well as the increase of land suitable for residential development, the City has expanded its capacity to develop affordable housing. Vacant Land The vacant land inventory identifies the realistic potential for 219 units. While many of the vacant parcels are expected to accommodate moderate- and above moderate-income households, there are several sites that are appropriate for high-density housing units for very low- and low- income households, accommodating approximately 129 very low- and low-income units. The number of very low- and low-income units is based on conservative estimates and allocating a portion of the site for non-residential development. For sites located in a PED zone, residential uses are not permitted on the ground floor facing the street and, therefore, it is assumed a minimum of 10 percent of the site would be dedicated to commercial and retail uses. Site number 10 (discussed in Table 4-7) can accommodate all but three of the very low and low- income housing need. This site is subject to PED regulation and therefore must be developed as a mixed-use property. As this site is located adjacent to very-high density multifamily residential land use and a multifamily apartment zone, it is anticipated this site will be built to maximum density capacity as compatible with surrounding residential uses. The remaining three units can be accommodated by the other vacant high density sites, which are not subject to the PED regulation. Second Units A review of City planning permit records indicated that five second units are constructed, on average, every year. Using this historic average, it is assumed that 25 second units will be permitted between now and June 2019, with one already constructed. Based on affordability calculations (See Table 3-14) and current rental rates it is expected that the second units will be affordable to low-income and moderate income households. However, the vacant land inventory and opportunity sites have sufficient capacity to meet the RHNA target without relying on second units. Underutilized Sites While the vacant sites identified in Table 4-7 are able to accommodate the remaining RHNA, the City has also identified opportunity sites with some existing development that are zoned for residential development (see Table 4-8). These sites are suitable for infill and redevelopment to provide alternate opportunities for new housing development and affordable units. The Item 10.b. - Page 141 City of Arroyo Grande 2014-2019 Housing Element 78 opportunity sites provide the possibility for an additional 317 units total including 139 very low- income and 127 low-income units. The City’s General Plan Land Use Element identifies numerous polices to promote a variety of housing types and affordability diversification. In addition to the sites in Tables 4-7 and 4-8, the City recently annexed a 48.74-acre site located south of the City limits at the southeast terminus of Castillo Del Mar. The property was approved for a 16 lot subdivision (VTTM 1789) by the San Luis Obispo County Planning Commission in 2008. The applicant revised the project to include six additional lots (VTTM 3048 , “Heights at Vista Del Mar”), which the County approved in December 2013. A Memorandum of Understanding (M OU) for the project established a strategy to provide water to Tract 3048 by utilizing a portion of water conservation offsets paid by the developer. Water availability is therefore from conservation rather than a new water supply. The applicant is in the process of installing required public improvements for the project. The 22 units are above the moderate-income level. Item 10.b. - Page 142 City of Arroyo Grande 2014-2019 Housing Element 80 Table 4-7 Vacant Sites Inventory ID # APN Address Site Size (acres) GP Land Use Zoning Density *Number of Dwelling Units Notes Site Constraints Low Density Sites 1 007-011-048, 047 100 Rodeo Dr. 2.9 CF PD 1.3 4.5/ac 13 Mod/AM Grace Church Property 2 007-011-040 Rodeo Dr. 6.9 MFR & SFR MF/RS 9/ac (MF) 2.5/ac (RS) 20 Mod/AM County Property (mixed zoning) 3 Portion of 007-011-044 PF & SF Old Ranch Rd. 5.0 CF & SFR PF/SF 4.5/ac 4 Mod/AM City Property – (South County Regional Center; mixed zoning) 4 077-051-052, 053; portion of 077-061- 016 Hillcrest Dr. 1.88 MU MF 9/ac 14 Mod/AM Mankins/ City Project Pending 5 Portion of 077-055-061 Hillcrest Dr. 1.12 MU MF 9/ac 10 Mod/AM Mankins 6 007-031-038; 007-791-034 251 Corbett Canyon 5.08 C/OS & SFR PF/RS 2.5/ac 8 Mod/AM creek setback area 7 007-011-041 Grace Lane and Rodeo Dr. 7.43 SFR PD 1.3 2.5/ac 11 Mod/AM steep slopes 8 077-163-001 Cedar & Aspen Streets 0.6 SFR SF 4.5/ac 3 Mod/AM SF Infill 9 006-095-024 Castillo Del Mar 11.0 SFR LD RH .67/ac 7 Mod/AM High Density Sites 10 077-111-072 143 & 147 Brisco Rd. 4.2 MU GMU/ **PED 15/ac (25/ac for mixed use) 94 VL/Low RV Storage 10% commercial 90% residential 11 077-011-010 700 Oak Park Blvd. 0.73 MU OMU 15/ac (20/ac for mixed use) 7 VL/Low 50% of site due to mixed-use zoning 12 077-012- 013 1650 Chilton St. 1.88 MU OMU 15/ac (20/ac for mixed use) 18 VL/Low 50% of site due to mixed-use zoning Item 10.b. - Page 143 City of Arroyo Grande 2014-2019 Housing Element 81 Table 4-7 Vacant Sites Inventory ID # APN Address Site Size (acres) GP Land Use Zoning Density *Number of Dwelling Units Notes Site Constraints 13 077-223-064 142 S. Halcyon Rd. 0.8 MU OMU 15/ac (20-ac for mixed use) 10 VL/Low One parcel is completely surrounded by the other parcel. Two separate owners 077-223-068 MU FOMU 15/ac (25/ac for mixed use) Totals 90 Mod/AM 129 VL/Low 219 total units Legend: AM – Above-Moderate Income Mod – Moderate Income Low – Low Income VL – Very Low Income Notes: *The estimated number of dwelling units for high density zones is conservative. Sites zoned FOMU or GMU can yield up to 25 du/ac. Sites zoned OMU are assumed to include 50% commercial development, which is not a requirement. **PED = Residential not permitted in pedestrian oriented storefront locations on ground floor facing E. Grand Avenue, East/West Branch Street or prime real estate space within shopping centers. Source: City of Arroyo Grande, 2014 Item 10.b. - Page 144 City of Arroyo Grande 2014-2019 Housing Element 82 Table 4-8 Opportunity Sites Inventory ID # APN Address Site Size (acres) GP Land Use Existing Zoning Density Existing (no. dwelling units) Addt’l (no. dwelling units) Existing Uses, Surrounding Uses, Other Information High Density Sites 14 007-531- 002, 005 980 & 1010 Huasna Rd. 1.86 AG AG n/a (AG) 9/ac (MF) 2 14 (VL) Possible Farm Worker Housing: Farm worker housing is allowed on this site. Density of farm worker housing is determined through discretionary review. Another option is to rezone to MF (9 du/ac). Surrounding uses include a mobile home park and agricultural uses. Owners are Dunn Douglass Family Trust and Charles Cabassi. 15 077-204- 014, 026, 031, 036, 037 370 - 382 So. Halcyon Rd. 1.8 MU OMU 15/ac (20/ac mixed use) 5 11 (VL) 11 (Low) Existing use is single family residential development (older, small homes), site is underutilized. Surrounding uses include Arroyo Grande Hospital, Harloe Elementary School, and multi-family development. Owners are Barbara Finn and Jones Family Trust. 16 077-201- 012 910 Dodson Way, 224 & 230 Halcyon Rd. 0.7 MU OMU 15/ac (20/ac mixed use) 3 3 (VL) 4 (Low) Existing use is single family residential development (older, small homes), site is underutilized. Surrounding uses include commercial and residential development. Owner is Tierra Pacific Development, LLC. Item 10.b. - Page 145 City of Arroyo Grande 2014-2019 Housing Element 83 Table 4-8 Opportunity Sites Inventory ID # APN Address Site Size (acres) GP Land Use Existing Zoning Density Existing (no. dwelling units) Addt’l (no. dwelling units) Existing Uses, Surrounding Uses, Other Information 17 077-111- 009, 011, 012, 014, 057; 077-112- 001 to 006; 077-113- 015, 016 077-211- 010, 015, 018, 022 to 024, 035 to 037, 077-221- 002, 003, 026, 027, 028, 031, 036, 037 1070-1150 E. Grand Ave., 1013-1167 E. Grand Ave. Total area = 11.92 acres. Assume 1/3 avail. for infill, or about 4 acres. MU FOMU 15/ac (25/ac mixed use) Existing comm ercial buildin gs, parking , couple of residen ces. 30 (VL ) 30 (Low) Assume back lot and infill development. Multiple parcels along Grand Avenue. Existing use is strip mall development. Surrounding uses are primarily other similar commercial uses. The subject properties are under multiple ownerships. 18 077-203- 009, 019 265 & 279 Alder 0.4 VHD (Very High Densi ty) SF1 25/ac 2 13 (VL ) 13 (Low) Existing use is single- family residential. The two parcels are adjacent to and owned by Tose Family Trust, which operates a senior assisted living facility (Alder House). Surrounding uses include single- and multi-family residential and office development. 19 077-241- 013, 035, 062 406 S. Elm; 1210, 1212 & 1220 Farroll Ave. 9.84 (Estimat ed 25% of propert y devel- oped at maxim um density) MFR/ CF/M U MFA/PF / OMU 15-25/ ac 1 SFR, Church & care facility 30 (VL) 30 (Low) Special needs or high density. Current uses include single family residence, residential care facility (Arroyo Grande Care Center owned by Compass Health, Inc.) and Coastal Christian School (grades K-12). Property owners are Mathias Family Trust, McMullen Juanita Living Trust, and Landmark Missionary Baptist Church. Item 10.b. - Page 146 City of Arroyo Grande 2014-2019 Housing Element 84 Table 4-8 Opportunity Sites Inventory ID # APN Address Site Size (acres) GP Land Use Existing Zoning Density Existing (no. dwelling units) Addt’l (no. dwelling units) Existing Uses, Surrounding Uses, Other Information 20 077-204- 028 280 Halcyon Road 0.8 MU OMU 15/ac (20/ac mixed use) 1 5 (VL) 6 (Low) MF Infill. The property is developed with a small single-family residence and therefore underutilized. Surrounding uses include commercial and high density residential development. Owner is George Gay. 21 077-141- 018, 027, 028 1203-1243 E. Grand Ave. 7.5 MU GMU/ MF 15/ac (50% of site) (25/ac mixed use) 0 28 (VL) 28 (Low) Existing commercial buildings. Tri-W/ RDA (identified redevelopment area of existing shopping center) 22 077-011- 011 1587 El Camino Real 1.11 MU OMU 15/ac (50% of site) (20/ac mixed use) 0 5 (VL) 5 (Low) Existing office building. Surrounding uses include, office, residential and vacant. Owner is Dechance Living Trust. Constraints include mature oak trees. Low Density Sites 23 007-571- all except 606 Lierly Ln. & E. Cherry Ave. 12.77 SFR Med. Densi ty with NP Overl ay RR 4.5/ac 12 25 (AM) This site is subject to Neighborhood Plan requirements to coordinate infrastructure improvements and circulation. Existing use is low density single-family development under multiple ownerships. Surrounding uses include single-family residences and active agricultural land. Site constraints include creek setback and agricultural buffer. Item 10.b. - Page 147 City of Arroyo Grande 2014-2019 Housing Element 85 Table 4-8 Opportunity Sites Inventory ID # APN Address Site Size (acres) GP Land Use Existing Zoning Density Existing (no. dwelling units) Addt’l (no. dwelling units) Existing Uses, Surrounding Uses, Other Information 24 007-861- 018, 070; 007-751- 004 1041 Huasna Rd. 1075 Huasna Rd. 6.62 SFR Low Medi um Densi ty RS 2.5/ac 3 13 (AM) Existing are 3 single- family residences on 2 parcels. One of the properties is vacant. Owners include Beck Family Trust and Nancy Kelley. Surrounding land uses include low density single family residential development and agriculture. The properties are somewhat constrained by slope. 25 077-192- 026, 031 1029 Ash Street 1.3 CF/SF SF 4.5/ac 2 4 (AM) SF Infill. Existing use is low-density single-family residential. Surrounding the property is single- family residential development. Owner of the property is Edmondson Living Trust. The land use designation of CF should be changed to SFR consistent with the zoning. 26 007-501- 012 513 Ide Street 1.63 C/OS SFR PF/SF 4.5/ac 1 5 (AM) SFR Infill. Existing use is one single-family residence. Surrounding the site is single-family residential development. Property owner is Wilks Trust. Site constraint is creek setback. 27 006-095- 025 Valley Road 7.32 SFR LD RH .67/ac 1 4 (AM) Owned by Judith Haddox Totals 51 AM 0 Mod 127 Low 139 VL 317 total units Legend: AM – Above-Moderate Income Mod – Moderate Income Low – Low Income VL – Very Low Income Note 1: Current zoning is not in compliance with the land use. A proposal to expand Alder House was recently submitted . The zoning will be brought into compliance through this project proposal. Source: City of Arroyo Grande, 2014 Item 10.b. - Page 148 City of Arroyo Grande 2014-2019 Housing Element 86 Table 4-9 Approved Projects 2007-2014 ID# Address Very Low Low Moderate Above Moderate Total (added across) Status 28 Rancho Grande (VTTM 01-001) 0 0 0 15 15 0 units constructed 29 451 Hidden Oak Rd. (Nester) 0 0 0 10 10 0 units constructed 30 415 E. Branch St. (Creekside) 0 0 2 22 24 0 units constructed 31 Southwest corner of E. Grand Ave. and S. Courtland St. (PSHH) 18 18 0 0 36 36 units constructed and occupied (October 2014) 32 The Pike and S. Elm St. 0 0 0 28 28 Under construction 33 Myrtle St. & E. Cherry Ave. (Cherry Creek) 0 0 0 28 28 19 units constructed 34 Grace Lane 0 0 4 15 19 17 units constructed 35 Pearwood Ave. (Zogata) 0 0 0 2 2 0 units constructed 36 Pearwood Ave. (City) 0 0 0 4 4 0 units constructed n/a Heights at Vista Del Mar 0 0 0 22 22 0 units constructed Totals 18 18 6 146 188 72 units constructed Source: City of Arroyo Grande, 2011 Item 10.b. - Page 149 City of Arroyo Grande 2014-2019 Housing Element 87 Figure 4-1 Housing Opportunity Sites Inventory Map Item 10.b. - Page 150 City of Arroyo Grande 2014-2019 Housing Element 88 4.4 Infrastructure Resources This section examines the availability and capacity of public facilities and services within the City that are essential to residential development. These include water, sewer, public safety, and schools. Water The City receives water from both groundwater and treated surface water. Groundwater is extracted from two separate basins: the Santa Maria Groundwater Basin and the Pismo Formation. The Santa Maria Basin is adjudicated, and the City currently has a right to 1,323 acre feet per year (AFY). The Pismo Formation is not adjudicated and the City has established 160 AFY of appropriative rights. The most significant portion of the City’s water supply is from Lopez Lake. The City is in contract with the San Luis Obispo County Water Conservation and Flood Control District Zone III for an entitlement of 2,290 AFY of treated surface water. The current total supply available to the City is 3,873 AFY. In calendar year 2013 the City used 3,111 acre feet of water, which calculates to a per capita rate of 164 gallons per day. If the per capita water consumption remains the same, the City’s buildout population of 20,000 would require an annual supply of 3,674 acre feet, which can be met with the current water supply. Table 4-10 shows the current and projected water supply through 2030. Table 4-10 Current and Projected Water Supply – Acre feet per year (AFY) Water Supply Sources 2010 2015 2020 2025 2030 Groundwater – Santa Maria Groundwater Basin 1,323 1,323 1,323 1,323 1,323 Groundwater – Pismo Formation1 80 200 200 200 200 County of San Luis Obispo Lopez Reservoir Project 2,290 2,290 2,290 2,290 2,290 Oceano Community Services District 2 100 TOTAL 3,793 3,813 3,813 3,813 3,813 Notes: 1. Assumes 80 AFY of groundwater from Well No. 9, 80 AFY from Well No. 10, and 40 AFY from Well No. 11 will be available as a reliable source of supply from 2015 through 2030. 2. Assumes that the remaining three years of the five year contract of 100 AFY with OCSD will be utilized in 2012,2013 and 2014. Item 10.b. - Page 151 City of Arroyo Grande 2014-2019 Housing Element 89 The projected water supply in 2015 is 3,813 AFY when considering the loss of 100 AFY from the OCSD and the addition of 40 AFY with Well No. 11, a net loss of 60 AFY. Additional water supply opportunities include options of purchasing State Water or recycled water. The 2010 Urban Water Management Plan Update proposes that water use be reduced to 149 gallons per capita per day (gpcd) to be in compliance with the California Water Code and Senate Bill X7-7 (SB7). SB7 requires urban water suppliers using more than 3,000 acre feet per year or serving more than 3,000 connections to reduce per capita water use by 20% by the year 2020. Strategies from the City’s Water Conservation Plan and mandatory water conservation measures will be utilized to achieve the required reduction. Sewer The City maintains a sewer collection system of approximately 65 miles of sewer main and five sewer lift stations. The collection system is managed under the guidance of the Sewer System Management Plan and discharge permit from the State Water Resources Control Board. The system capacity is currently being modeled with the preparation of the Wastewater System Master Plan Update. The Master Plan will detail all system requirements including main replacements and upgrades. The collection system conveys the sewage to the South San Luis Obispo County Sanitation District. The District provides collection, treatment and disposal services for the City. The treatment plant is located in Oceano and also treats sewage from the Oceano Community Services District and the City of Grover Beach. The plant is designed to treat an average daily flow of 4.2 million gallons per day. The current average flow is 2.9 million gallons per day. The plant has been estimated to provide ample service until at least 2025. Public Safety The City of Arroyo Grande Police Department is responsible for law enforcement, investigations and crime prevention programs with the City limits. The Five Cities Fire Authority was established in July 2010 by a joint Powers Agreement between the Cities of Arroyo Grande, Grover Beach and Oceano Community Services District and is responsible for providing fire protection and medical response. The City historically has low levels of major crime or fire loss despite below average police and fire department staffing. There are no uniform standards regarding appropriate or adequate numbers of officers per number of residents. Average response time with the City limits is between 4 to 6 minutes, which for some of the areas of the City is consistent with a recognized standard of 5 minutes. Item 10.b. - Page 152 City of Arroyo Grande 2014-2019 Housing Element 90 It is generally expected that police and fire resources will improve with additional development that generates increased tax revenues. However, with the recent shifts of local tax revenues to the State, and decreasing State revenues being provided to local governments, additional development may cause a decrease in public safety for the community. Schools School facilities for Arroyo Grande are provided by the Lucia Mar Unified School District, which provides educational services in the South County Area, which includes Grover beach, Pismo Beach, Oceano, Nipomo and the remaining unincorporated county. The District operates and maintains 11 elementary schools, three middle schools, and three high schools. With the exception of Nipomo High, recent studies have indicated that most of the schools, with the exception of Nipomo High, were built in the 1950’s and 1960’s and thus may be subject to needed renovation. Information provided in the Arroyo Grande General Plan EIR adopted in 1991 indicated that many of the schools were operating at an over capacity level. With the opening of Nipomo High in 2002, the high school level capacity has been resolved. According to the 2014 San Luis Obispo County Annual Education Report, enrollment is projected to slightly decline due to the number of graduating seniors exceeding the amount of students entering kindergarten. This can be attributed to a recent studies report in the San Luis Obispo Tribune newspaper indicate that the population in the area will be shifting from families to a more senior population, mainly because of the cost of housing. Recent State budget cuts are also affecting the operation ability of the school district to provide education services. 4.5 Financial Resources Many State programs exist to provide cities, communities, and counties financial assistance in the development, preservation, and rehabilitation of units for workforce housing. The Department of Housing and Community Development identifies and provides detailed information on the grants and loans available for affordable and workforce housing, which are listed below. A couple of Federal programs are included as well. Affordable Housing Innovation Program: This program provides grants or loans to fund the development or preservation of workforce housing. Golden State Acquisition Fund (GSAF) Affordable Housing Innovation Program: This program provides quick acquisition financing for the development or preservation of workforce housing. Provides loans for developers through a nonprofit fund manager. Item 10.b. - Page 153 City of Arroyo Grande 2014-2019 Housing Element 91 http://www.hcd.ca.gov/fa/ahif/ahip-l.html Local Housing Trust Fund Program: Matching grants (dollar-for-dollar) to local housing trust funds dedicated to the creation or preservation of affordable housing that are funded on an ongoing basis from private contributions or public sources that are not otherwise restricted in use for housing programs. http://www.hcd.ca.gov/fa/ahif/lhtf.html American Recovery and Reinvestment Act – CDBG Recovery Program (CDBG-R): This is an economic development grant program and includes goals of modernizing infrastructure, improving energy efficiency, expanding educational activities, and access to healthcare. The program disburses housing-related grants for single- and multi-family housing to rehabilitate housing, acquire rental units, homeownership assistance, and activities complementing new construction. http://www.hcd.ca.gov/fa/ahif/cdbgr.html CalHome Program: Provides grants to local agencies and nonprofit developers to assist very-low income homeowners through deferred payment loans as well as direct, forgivable loans to assist development projects. www.hcd.ca.gov/fa/calhome Emergency Solutions Grant (ESG): Provides grants to fund projects that serve homeless individuals and families with supportive services, emergency shelter/transitional housing, assisting persons at risk of becoming homeless with homelessness prevention assistance, and providing permanent housing to the homeless population. http://www.hcd.ca.gov/fa/esg/index.html Enterprise Zone Program: Provides incentives such as sales tax credits and operation deductions for business investment. http://www.hcd.ca.gov/fa/ez/EZoverview.html Governor’s Homeless Initiative: Provides loans and grants for the development of permanent supportive housing for chronically homeless residents who suffer from severe mental illness. www.hcd.ca.gov/fa/ghi Item 10.b. - Page 154 City of Arroyo Grande 2014-2019 Housing Element 92 HOME Investment Partnerships Program: Provides cities, counties, and nonprofit organizations with grants and low-interest loans to create and retain affordable housing. www.hud.gov/offices/cpd/affordablehousing/programs/home/ Infill Infrastructure Grant Program: Provides grants to assist in the creation and rehabilitation of infrastructure that supports higher-density affordable and mixed-income housing in places designated for infill. http://www.hcd.ca.gov/fa/iig/ Mobilehome Park Resident Ownership Program (MPROP): Provides loans to finance the preservation of affordable mobilehome parks by conversion to ownership or control by resident organizations, nonprofit housing sponsors, or local public agencies. http://www.hcd.ca.gov/fa/mprop/ Multifamily Housing Program (MHP): Provide deferred payment loans to fund the construction, rehabilitation, and preservation of permanent and transitional rental units for supportive housing. This includes housing for low-income residents with disabilities, or those who are at risk of homelessness. www.hcd.ca.gov/fa/mhp Office of Migrant Services: Provides grants to local government agencies that contract with HCD to operate OMS centers in California. OMS centers provide safe and affordable seasonal rental housing and support services for migrant farmworker families. www.hcd.ca.gov/fa/oms Predevelopment Loan Program: Provides short-term loans for financing low-income housing projects. www.hcd.ca.gov/fa/pdlp State CDBG Program Economic Development Allocation: Provides grants for planning and technical assistance and the creation or maintenance of jobs for rural low-income workers. http://www.hcd.ca.gov/fa/cdbg/EconDevelopment.html State CDBG Program Community Development Allocation: Provides grants to fund housing, public improvement, community facilities, public services, and planning and technical assistance that benefit lower-income residents in rural communities. http://www.hcd.ca.gov/fa/cdbg/CommunityDevelopment.html Item 10.b. - Page 155 City of Arroyo Grande 2014-2019 Housing Element 93 Local Housing Funds The City has an inclusionary housing ordinance. Fees collected under the ordinance are kept in the In-Lieu Affordable Housing Trust Fund. Funding from this source can be directed to affordable housing projects in the City and/or used to leverage State and federal housing funds. As of June 30, 2014, the In-Lieu Affordable Housing Trust Fund had funds in the amount of $81,000 devoted to affordable housing. To date, the City has allocated funds from this source for two affordable senior housing projects. This fund will increase during the housing period as additional projects are developed. The City also another fund used for affordable housing, the Successor RDA Housing Function. The Successor RDA fund currently has a negative balance, as the City recently paid HASLO for an affordable housing project at 224 S. Halcyon in June, 2014. Another source of local housing funding is through the San Luis Obispo County Housing Trust Fund (SLOCHTF), which is a private nonprofit corporation created to increase the supply of affordable housing in San Luis Obispo County for very low, low and moderate income households. SLOCHTF provides financing and technical assistance to help private developers, nonprofit corporations and government agencies produce and preserve homes that working families, seniors on fixed incomes and persons with disabilities can afford to rent or buy. More information on SLOCHTF can be found at www.slochtf.org. Item 10.b. - Page 156 City of Arroyo Grande 2014-2019 Housing Element 95 Chapter 5 Housing Constraints The price of a home is based upon several basic costs: land, materials, labor, financing rates and insurance, government requirements and fees, as well as environmental constraints. The first two sections of this Chapter discuss governmental constraints and environmental and public service constraints. The cost of land, materials, and labor are determined by the free market economy. Financing rates and insurance costs are set by the capital markets and State and federal regulations. These items are discussed in the last Section under nongovernmental requirements. 5.1 Governmental Constraints The intent of this sub-section is to analyze governmental constraints that affect housing development, as well as to identify those that may be modified to reduce barriers to the maintenance, improvement or development of housing for all income levels. The California Legislature has delegated to local governments specific responsibilities and a certain amount of discretionary control over the development and use of land. Through land use controls, development review procedures, and fees, cities influence the location, density, type, size, quality and appearance of housing. These requirements significantly affect the cost and availability of housing. Many of these controls are required by local government in response to State and federal mandates to protect public health and safety, and others are adopted to achieve the desired quality of life and objectives of the local community. Land Use and Development Controls The primary policy tool for promoting a balanced use of land and resources is through the City’s General Plan. The 2001 General Plan establishes an overall framework for development and conservation of land in the City, primarily through the Land Use Element. State law divides the required content of a general plan into seven distinct elements, and requires that the General Plan be designed as a balanced, integrated document that is internally consistent. Housing is one of seven elements and has a number of issues the City must address. Item 10.b. - Page 157 City of Arroyo Grande 2014-2019 Housing Element 96 The primary means to implement the General Plan is the Development Code, which establishes development standards, intensity of development, and minimum site standards. Various residential and mixed-use zones are established which are intended to implement the densities set by the General Plan. Other requirements in the Development Code are setbacks, lot coverage, parking, open space and other related property development standards. Table 5-1 provides a comparison of the land use designations from the General Plan Land Use Element (including 2003 amendments) to the zones implemented by the Development Code. Table 5-1 also shows the maximum density per land use designation. The Development Code was recently updated to include regulations that increased the allowable height to enable higher densities. This issue was addressed through implementation of Program B-4.1 in the 2003 Housing Element and resulting Development Code amendments. Mixed use districts located along the East Grand Avenue corridor and South Halcyon Road allow building heights up to 35 feet and three stories with the ability to go up to 40 feet in some districts depending on the building size and proximity to residential development. The Industrial Mixed Use (IMU) district along El Camino Real allows heights to 30 feet and three stories. All Multiple- Family zoning districts remain at 30 feet or two stories. Minor Exceptions can allow up to 33 feet in these districts. Housing types permitted by residential and mixed use zoning districts are provided in Tables 5-2 and 5-3. Residential zone development standards are shown in Table 5-4, Multi- family and other zones development standards are shown in Table 5-5, and Mixed-Use development standards are shown in Table 5-6. Multi-family projects of 2 to 4 units are permitted subject to a Minor Use Permit (MUP), which is an administrative process. With these projects, the Architectural Review Committee (ARC) makes a recommendation to the Community Development Director. Multi-family projects greater than 4 units require a Conditional Use Permit (CUP), which is a discretionary review process. The ARC considers all CUPs associated with development projects and makes a recommendation to the City Council, Planning Commission and/or Community Development Director. Design Review (DR) permits are limited to residential subdivisions approved with specific design guidelines. The ARC reviews DR applications for consistency with the approved design guidelines and makes a recommendation to the Community Development Director. Chapter 2.19 of the Municipal Code outlines the functions, duties, procedures, and guiding purposes in reviewing projects for the ARC. The function of the ARC is to make recommendations to decision makers regarding the administration of the provisions of Title 16 (Development Code), whenever applicable, in a manner that will: 1. Be consistent with the requirements of the General Plan and of Title 16; Item 10.b. - Page 158 City of Arroyo Grande 2014-2019 Housing Element 97 2. Develop and maintain a pleasant and harmonious environment; 3. Promote and enhance real property values; 4. Conserve the City’s natural beauty; 5. Preserve and enhance its distinctive visual character; 6. Ensure orderly and harmonious development of the City; and 7. Preserve historic structures and neighborhoods. The ARC meets twice per month. Development applications are subject, in many cases, to the California Environmental Quality Act (CEQA).CEQA requires that development applications be subject to an environmental review of the impacts that would result from implementation of a project. The City, as part of its 2001 General Plan, prepared a program environmental impact report (EIR) to address the impacts of development proposed by the Plan. The anticipated residential development evaluated in the Plan is similar to that required by the Regional Housing Needs established for the City. The Program EIR concluded that there were several significant environmental impacts that could not be mitigated to less than significant levels. Required findings and statements of overriding considerations also required mitigation measures that will influence future residential development and may require project EIRs that will increase the cost of the development. These costs are unavoidable given the State mandated requirements of CEQA. Table 5-1 Urban Land Use Element and Development Code Classification General Plan DU Max. Density Development Code Consistency Consistent Zoning Min Lot Size Agriculture (Ag) 1 du/10 ac. General, Agricultural Preserve or Agricultural Preservation Overlay 20 ac. (currently 10 ac. In City) Conservation/ Open Space(C/OS) 1 du/20 ac. 1 du/10 ac. 1 du/5 ac. OS & PF 5 ac, 10 ac, & 20 ac. County Residential Rural (RR) 1 du/5 ac RR 1.0 du/acre County Residential Suburban (RS) 1 du/2½ ac. RS 12,000 sf Single Family Residential Very Low Density (VLD) 1 du/2 ½ ac. RE 2½ ac. Low Density (LD) 1 du/1½ ac 1 du/1 ac RH RR 1½ ac. (cluster) 1 ac. Low Medium Density (LM) 2.5 du/1 ac. RS 17,000 sf Medium Density (MD) 4.5 du/ac SF/VR 9,680 sf Item 10.b. - Page 159 City of Arroyo Grande 2014-2019 Housing Element 98 Table 5-1 Urban Land Use Element and Development Code Classification General Plan DU Max. Density Development Code Consistency Consistent Zoning Min Lot Size Multi-Family Residential Multi-Family Residential (MFR) Medium High Density (MHD) Townhouse/Condo 9.0 du/ac MF 10,000 sf Mobile Home Park (MHP) 12.0 du/ac MHP 5 ac. High Density (HD) Apartments 14 du/ac MFA 10,000 sf Very High Density (VHD) 25 du/ac MFVH 20,000 sf Mixed Use (MU) Village Core (VC) Office (O) PD, SP and CF 25 du/ac See Table 5-4 Source: City of Arroyo Grande General Plan and Development Code Table 5-2 Housing Types Permitted by Zoning District – Residential Zones Residential Uses/Housing Type RE RH RR RS SF VR MF MFA MFVH MHP Single-family detached P P P P P MUP P P NP NP Small lot single-family detached NP PUD PUD PUD PUD PUD PUD NP NP NP Single-family attached (twin home, triplex, fourplex) NP PUD NP NP PUD NP PUD PUD NP NP Condominium (air space) NP NP NP NP NP NP C C C NP Multiple-family attached (2 - 4 units) NP NP NP NP NP NP MUP MUP P NP Multiple-family attached (5 or more units) NP NP NP NP NP NP C C MUP NP Mobilehome subdivisions C C C C C C C C C C Mobilehome parks C C C C C C C C C C Boarding/rooming houses NP NP NP NP NP NP C C C NP Senior independent living uses NP NP NP NP NP NP C C C NP Congregate care, assisted living NP NP NP NP NP NP C C C NP Convalescent care NP NP NP NP NP NP C C C NP Residential care facility (6 or fewer persons) P P P P P P P P P P Second residential dwelling unit P P P P P P P P P P Small family day care (6 or fewer children) P P P P P P P P P P Large family day care (7 or more children) P P P P P P NP NP NP NP Homeless shelters within religious or social organization buildings NP NP NP NP NP NP C C C NP Home occupations P P P P P P P P P P Accessory use: guest quarters P C C C C C NP NP NP NP Legend P = Permitted C = Permitted subject to issuance of a Conditional Use Permit MUP = Minor Use Permit NP = Not Permitted PUD = Permitted subject to issuance of a Planned Unit Development Permit Source: City of Arroyo Grande Development Code Item 10.b. - Page 160 City of Arroyo Grande 2014-2019 Housing Element 99 Table 5-3 Housing Types Permitted by Zoning District – Mixed Use Zones Residential Uses IMU TMU D- 2.11 VCD HCO D-2.4 VMU D-2.11 HCO D-2.4 GMU FOM U HMU OMU D-2.20 RC Specific Use Standards Assisted Living NP NP CUP CUP CUP/P ED CUP/ PED NP CUP NP Home occupation NP MUP P P P P MUP P NP 16.16.090 Multi-family housing not located within a mixed use project NP NP NP CUP CUP/P ED CUP/ PED CUP (on lots >20,000 square feet CUP (on lots >20,000 square feet) NP Minimum density (75% of total density allowed by district) required by Housing Element is not required on lots fronting E. Grand Ave., E. Branch Street or in HMU or IMU districts. Multi-family housing in a mixed use project NP NP MUP/PE D MUP CUP/P ED CUP/ PED CUP CUP NP Minimum density (75% of total density allowed by district) required by Housing Element is not required on lots fronting E. Grand Ave., E. Branch Street or in HMU or IMU districts. Residential care facility, 6 or less clients NP NP MUP/PE D MUP MUP/ PED MUP NP MUP NP Residential care facility, 7 or more clients NP NP CUP/PE D CUP CUP/P ED CUP/ PED NP CUP NP Single family residential within a mixed use project NP NP NP MUP NP NP NP NP NP Legend IMU = Industrial Mixed Use District (El Camino) FOMU = Fair Oaks Mixed Use District TMU = Traffic Way Mixed Use District HMU= Highway Mixed Use District VCD = Village Core Downtown District OMU =Office Mixed Use District VMU = Village Mixed Use District RC = Regional Commercial District GMU = Gateway Mixed Use District HCO = Historic Character Overlay District (Design Overlay District 2.4) P = Permitted Use MUP = Minor Use Permit CUP = Conditional Use Permit PED = Residential not permitted in pedestrian oriented storefront locations on ground floor facing E. Grand Avenue, East/West Branch Street or prime real estate space within shopping centers NP = Not Permitted Source: City of Arroyo Grande Development Code Item 10.b. - Page 161 City of Arroyo Grande 2014-2019 Housing Element 100 Table 5-4 Residential Site Development Standards Single-Family Zones RE RH RR RS SF VR Maximum density (DU’s per gross acre) 0.4 0.67 1.0 2.5 4.5 4.5 Minimum building site1 (Net area in sq. ft.) 92,5002 49,000 40,000 12,000(reduced minimum building site area allowed with provision to permanently preserve sensitive habitat and/or open space corridors and/or to avoid development of steep slopes and ridgelines) 7,200 6,750 Minimum lot width3 200 ft. 130 ft. 120 ft. 80 ft. 70 ft. 50 ft. Minimum lot depth 250 ft. 200 ft. 200 ft. 100 ft. 100 ft. 100 ft. Minimum front yard 50 ft. 35 ft. 35 ft. 25 ft. 20 ft. 15 ft. Minimum interior side yard setback 30 ft. 10% of lot width 10% of lot width 5 ft. one side, 10 ft. other side 5 ft. one side, 10 ft. other side 5 ft. Minimum street side yard setback 30 ft. 15% of lot width 15% of lot width 15 ft. 15 ft. 10 ft. Minimum rear yard setback 50 ft. 40 ft. 25 ft. 20 ft. (For lots <12,000 sq. ft use SF) 10 ft. (1 story) 15 ft. (2- story) 10 ft. (1- story) 15 ft. (2- story) Maximum lot coverage4 35% 35% 35% 30% (For lots < 10,000 sq. ft. use SF) 40% 40% Maximum height for buildings and structures 30 ft. or 2 stories, whichever is less, 14 ft. for accessory buildings Minimum distance between buildings (including main dwellings and accessory structures)5 20 ft. 20 ft. 6 ft. 10 ft. 10 ft. 10 ft. Source: City of Arroyo Grande Development Code Item 10.b. - Page 162 City of Arroyo Grande 2014-2019 Housing Element 101 Table 5-5 Residential Site Development Standards Multiple Family and Other Zones MF MFA MFVH MHP Maximum density (DU’s per gross acre) 9.0 14.0¹ 25.0 12.0 Minimum building site (Net area in sq. ft.) 10,000 10,000 20,000 5 acres Minimum lot width 80 ft. 80 ft. 80 ft. 60 ft.6 Minimum lot depth 100 ft. 100 ft. 100 ft. 100 ft.6 Minimum front yard setback 20 ft. 20 ft. 20 ft. 20 ft. Minimum interior side yard setback 10 ft. 10 ft. 10 ft. 5 ft. Minimum street side yard setback 10 ft. 10 ft. 10 ft. 15 ft. Minimum rear yard setback Average 15 ft.7 Average 15 ft.7 Average 15 ft.7 5 ft. Maximum lot coverage 40% 45% 60%6 50% Maximum height for buildings and structures 30 ft. or 2 stories, whichever is less, 14 ft. for accessory buildings 30 ft. or 2 stories, whichever is less, 14 ft. for accessory buildings 30 ft. or 2 stories, whichever is less, 14 ft. for accessory buildings 30 ft. or 2 stories, whichever is less, 14 ft. for accessory buildings Minimum distance between buildings (including main dwellings and accessory structures) 10 ft. 10 ft. 10 ft. 5 ft. Source: City of Arroyo Grande Development Code Table 5-6 Residential Site Development Standards Mixed Use Zones IMU TMU VCD VMU GMU FOMU HMU OMU Maximum density – Mixed Use (DU’s per gross acre) 8 8 15 15 2516 2516 2016 2016 Maximum density – Multi-family housing (DU’s per gross acre) n/a n/a n/a n/a 15 15 20 15 Minimum density17 n/a n/a n/a n/a 75% of max. density16 75% of max. density16 n/a 75% of max. density16 Minimum Lot Size 18,000 sf (gross) 10,000 sf (gross) 2,500 sf 5,000 sf 20,000 sf (gross) 15,000 sf (gross) 20,000 sf (gross) 20,000 sf Minimum lot width 100 ft. 80 ft. 25 ft. 40 ft. 100 ft. 80 ft. 80 ft. 100 ft. Front Yard Setback 10 ft. 0-15 ft. 25 0-15 ft. 26 0-15 ft. 0-10 ft.218 0-10 ft.18 0-15 ft. 0-10 ft. Rear Yard setback 0-15 ft.9 0-15 ft.10 0-15 ft. 0-15 ft.14 0-15 ft. 0-15 ft. 0-15 ft.10 0-15 ft. Side yard setback 0-15 ft. 23 0 ft.10 0 ft. 0 ft.15 0-5 ft.19 0-5 ft.19 0 ft. 10 0-5 ft. Street side yard setback 20 ft. 24 0-15 ft. 25 0-15 ft. 0-15 ft. 0-15 ft. 0-15 ft. 0-15 ft. 0-15 ft. Item 10.b. - Page 163 City of Arroyo Grande 2014-2019 Housing Element 102 Maximum height 30 ft. or 2 stories 30 ft. or 3 stories11 30 ft. or 3 stories13 30 ft. or 3 stories13 35 ft. or 3 stories20 35 ft. or 3 stories20 30 ft. or 3 stories11 35 ft. or 3 stories21 Maximum building size 102,500 sf 50,000 sf12 20,000 sf 10,000 sf 102,500 sf 50,000 sf 50,000 sf12 50,000 sf22 Site Coverage 50% 75% 100% 100% 75% 70% 75% 70% Floor Area Ratio 0.45 0.75 2.0 1.0 1.5 1.0 0.75 100 Off-street parking and loading Reference Section 16.56.020 Reference Standards D-2.11 and Section 16.56.020 Exceptions allowed by Section 16.16.120 Reference Parking and Business Improvem ent District Plan in Section 16.56.020 Reference Parking VMU and HCO in Section 16.56.020 (C) 28 30 31 Referenc e Section 16.56.020 Site design and signs Reference Chapter 16.60 Reference Standards D-2.11 and Chapter 16.60 Reference Standards for Historic Districts and Chapter 16.60 Reference Standards for Historic Districts and Chapter 16.60 27 29 Referenc e Standards D-2.11 and Chapter 16.60 32 Source: City of Arroyo Grande Development Code Notes (Tables 5-4, 5-5, and 5-6) 1. See Table 16.32.050-A for minimum lot sizes for parcels with slope greater than seven percent. 2. Area shall be increased to five acres for slope conditions exceeding twenty (20) percent. 3. Width measurements for cul-de-sac or otherwise odd-shaped lots shall be determined on the basis of the average horizontal distance between the side lot lines, measured at right angles to the lot depth at a point midway between the front and rear lot lines. 4. The following floor area ratios shall be adhered to in all zoning districts in addition to lot coverage requirements: Lot Size Floor Area Ratio (FAR) 0 — 4000 square feet net 0.35 4001 — 7199 square feet net 0.40 7200 — 11999 square feet net 0.50 12000 — 39999 square feet net 0.45 40000 + square feet net The above FAR’s shall not apply to condominium or PUD projects where the proposed lot consists of a building footprint. 5. Within a planned unit development, building separations may be reduced to zero feet, provided that fire walls are provided per UBC standards. 6. The minimum parcel size within the mobile home district may be reduced to three thousand six hundred (3,600) square feet with a minimum average width of forty (40) feet and a minimum frontage of not less than thirty (30) feet if common open space areas and recreational facilities are provided as part of the subdivision and if the open space areas and recreational facilities are reserved for the exclusive use of residents of the subdivision. Standards for the provision of common open space required to permit a reduction in lot size are as follows: (1)A minimum of five hundred (500) square feet of common open space and recreational area shall be provided for each residential lot in the subdivision. (2)The combined square footage of common open space, recreational area, and residential lot area, not including public and private streets and cannon parking areas shall average not less than six thousand (6,000) square feet per lot within the subdivision. Item 10.b. - Page 164 City of Arroyo Grande 2014-2019 Housing Element 103 (3)Open space and recreational areas shall be designated on the subdivision map, and shall be located entirely within the subdivision. 7. For two-story buildings average rear yard setback shall be twenty (20) feet. Average includes all buildings along rear property line and is subject to city approval. 8. New residential limited to live-work units in conjunction with allowed uses. Density determined by discretionary action. 9. 50 feet if adjacent to a residential district. 10. Wherever a lot in any commercial or mixed use district abuts a residential use or a lot in any residential use district, a minimum building setback of twenty (20) feet measured from the property line shall be required for proposed commercial use. 11. 30 ft. or three stories whichever is less; a maximum of 36 feet is allowable through the CUP process for visitor serving uses. 12. A greater size may be allowed through the CUP process. 13. Maximum height is 30 feet or three stories, whichever is less; a maximum of 36 feet is allowable through the MUP process. 14. If project is mixed use and/or abuts a residential district then 10 feet required. 15. If a project is mixed use and/or abuts a residential district, then 5 feet is required for single story structures and 110 feet is required, on one side, for a multiple stories. 16. Based on gross project area. 17. Projects that do not front E. Grand Avenue; densities do not include density bonus. See Chapter 16.80. 18. Exceptions for larger setbacks may include entrance courtyards, areas for outdoor dining, or for projects facing a residential district as determined through discretionary review. 19. For projects abutting a residential district, corresponding residential setback shall apply. 20. Maximum height is 35 feet or three stories whichever is less; a maximum of up to 40 feet for mixed use projects by discretionary action on lots larger than 20,000 square feet and where the building is not adjacent to a residential district. 21. Maximum height for mixed residential/commercial use is 35 feet or three stories whichever is less. 22. A greater size may be allowed through the CUP process. 23. Except as otherwise permitted, required rear and interior side building setback areas shall be used only for landscaping, pedestrian walkways, driveways, off-street parking or loading, recreational activities or facilities, and similar accessory activities. 24. Except as otherwise permitted, a street side building setback area shall be used only for landscaping, pedestrian walkways, driveways or off-street parking. 25. Exceptions may include areas for outdoor sales determined through discretionary action. 26. Structures typically built at back of sidewalk. Exceptions include entrance courtyards and areas for outdoor dining determined through discretionary review. 27. Commercial and mixed use projects larger than 20,000 sf.: 200 sf. of public accessible open spaces is required for every 5,000 sf. of office or commercial spaces exclusive of areas for parking and driveways. See General Commercial and Mixed Use Design Guidelines and Standards. General Plan Policies LU5-11. For mixed use projects, refer to Section 16.48.065. Additional sign standards also in Chapter 16.60. 28. See Design Guidelines and Standards. Parking is to be located behind buildings or to the side. Driveways along E. Grande Avenue shall be minimized by combining driveways, using alleys or designing development so that access is provided from local streets. See Section 16.56.020. 29. See Design Guidelines and Standards. Please note General Plan Policies LU5-11. For mixed us projects refer to Section 16.48.065. Additional sign standards are found in Chapter 16.60. 30. See Design Guidelines and Standards. Parking is to be located behind buildings or to the side. Driveways along E. Grand Avenue shall be minimized when possible by combining driveways, using alleys or designing development so that access is provided from local streets. See Section 16.56.020. 31. See Design Guidelines and Standards D-2.11 Exhibit ‘A’ for shared parking locations. See also Section 16.56.020. Exceptions allowed by Section 16.16.120. 32. See OMU-D-2.20. Please note General Plan Policies LU5-11. For mixed use projects, refer to Section 16.48.065. Additional sign standards also in Chapter 16.60. Item 10.b. - Page 165 City of Arroyo Grande 2014-2019 Housing Element 104 Building Code Requirements The Arroyo Grande building requirements are based upon the latest version of the California Building Code, which is a version of the International Building Code adopted by the State. The City adopted Ordinance No. 657 on October 8, 2013 entitled: An Ordinance of the City Council of the City of Arroyo Grande amending Arroyo Grande Municipal Code Chapter 8.04 and 8.08 related to the adoption of the California Fire Code and International Fire Code; and amending Chapter 15.04 related to the adoption of the California Building Code, California Residential Code, California Electrical Code, California Mechanical Code, California Plumbing Code, California Green Building Code, California existing Building Code, California Energy Code, California Historical Building Code and the International Property Maintenance Code. No local amendments to the State Building Code have been adopted. Code enforcement is complaint- based. If an infraction is found the enforcement officer provides a list of potential resources to the homeowner. The degree and type of enforcement is described in this Ordinance. The Code ensures safe housing and is not considered a significant constraint to housing production. Inclusionary Housing In 2000 (last amended in 2007), the City adopted an Inclusionary Housing Ordinance (Development Code Chapter 16.80 Inclusionary Affordable Housing Requirements).Its implementation resulted in the construction of 163 affordable housing units during the previous planning periods. According to the ordinance, any residential development of two units or more is required to build a certain percentage of the units as affordable, pay an in-lieu fee, or donate a suitable amount of land. The required percentages are as follows:  At least five percent very low-income units; or  At least 10 percent lower-income units; or  At least 15 percent moderate-income units where the proposed project is planned for rental units or units that are not developed as a common interest development pursuant to Civil Code Section 1351; or  An equivalent combination as determined by the Community Development Director. The inclusionary units can be owner-occupied or rental units and restrictions must be put in place to maintain their affordability for at least 45 years for owner-occupied units and 55 years for rental units. The determination whether an applicant constructs units, pays an in-lieu fee, or donates land is made by the City Council on a project-by-project basis. Item 10.b. - Page 166 City of Arroyo Grande 2014-2019 Housing Element 105 Allowances and incentives are available for projects with inclusionary units including density bonuses, fee waivers or reductions, modification of development standards, and technical assistance from the City on applying for financial subsidy programs. Establishment of these regulations has increased the supply of affordable housing in Arroyo Grande. Increased flexibility during the review process and with project review costs are intended to offset increased costs and time required to meet the requirements of this inclusionary section of the Development Code. Program F.3-1 is proposed to evaluate the effectiveness of these regulations to date and amend Chapter 16.80 Inclusionary Affordable Housing Requirements, as deemed helpful to increase production of affordable units. Density Bonus Standards The City’s density bonus program (Development Code Chapter 16.82) implements the State’s Density Bonus Law and supports inclusionary housing. The purpose of the density bonus requirements is to increase the production of affordable housing for very low, low and moderate-income households as well as senior housing and mobile home developments. Developer concessions or incentives are granted for a residential project that meets the criteria for a density bonus projects. Incentives granted by the City include, but are not limited to: o Flexibility in development standards; o Approval of mixed-use zoning in conjunction with the housing project; or o Leniency on parking ratios set forth in Government Code Section 65915 o Other regulatory incentives or concessions proposed by the City or developer. AB 2280 became effective in September 2008.AB 2280 institutes various changes to the density bonus law, most notably the bill amends the timing for density bonus requests, clarifies density bonus requirements for senior housing, and institutes a 10% across the board increase in the percentage of affordable units that must be included in a housing development project to qualify for incentives. The City updated their density bonus program in 2007 to be consistent with SB 1818, however amendments are required to bring regulations into compliance with the changes made from AB 2280. Therefore, Program A.10-1 is proposed to bring the City into complete compliance with current State density bonus law. Item 10.b. - Page 167 City of Arroyo Grande 2014-2019 Housing Element 106 Emergency Shelters and Transitional Housing State legislation SB 2 requires jurisdictions to permit emergency shelters without a Conditional Use Permit (CUP) or other discretionary permits, and transitional housing and supportive housing must be considered residential uses and must only be subject to the same restrictions that apply to the same housing types in the same zone. Programs K.2-1 and K.2-2 are proposed to amend the Development Code to allow emergency shelters without any discretionary review (by right) in at least one zone and to define transitional and supportive housing as required per SB2. Secondary Dwelling Units To encourage establishment of secondary dwelling units on existing developed lots, State law requires cities to either adopt an ordinance based on standards set out in the law authorizing creation of second units in residentially zoned areas, or where no ordinance has been adopted, to allow second units if they meet standards set out in the State law. State law requires ministerial consideration of second unit applications in zones where single-familydwellings are permitted. Local governments are precluded from totally prohibiting second units in residentially zoned areas unless they make specific findings (Government Code §65852.2). Second units can be an important source of affordable housing since they are smaller than primary units and they do not have direct land costs. Second units can also provide supplemental income to the homeowner, thus allowing the elderly to remain in their homes or moderate-income families to afford housing. In the City’s Development Code secondary dwelling units are referred to as a “second residential dwellings”. A second residential dwelling is either a detached or attached dwelling unit that provides complete, independent living facilities for one or more persons, including permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the primary residence. Table 5-5 sets out the primary standards for second residential dwellings in the City. The City’s standards do not conflict with State law governing second units. However, having a minimum parcel size requirement for a second residential dwelling can often be a constraint to developing secondary units. Item 10.b. - Page 168 City of Arroyo Grande 2014-2019 Housing Element 107 Table 5-5 Second Residential Dwellings Development Standards Standards Second Residential Dwelling Development Standards Shall comply with all zoning regulations and property development standards of the district in which it is located. Any proposed deviation from standards of Development Code Section 16.52.150 (Second residential dwellings) shall be processed through a conditional use permit or minor use permit application as determined by the Community Development Director. Minimum Lot Size 6,750 sf Maximum Size 50% of square footage of primary residence1 Rental of Unit Shall be occupied on month-to-month basis or longer. Either primary residence or second residential dwelling must be occupied by owner of property Building Separation Detached second residential dwelling - located a minimum distance equal to twice the applicable side yard setback from primary residence. Average Slope 20% max. Parking 1 space/bedroom (max. 2 spaces) Source: City of Arroyo Grande Development Code Development Processing and Development Impact Fees Like most cities in California, Arroyo Grande charges planning, building, and impact fees for residential developments. Table 5-6 summarizes the planning fees charged by the Community Development Department for processing residential applications. These fees are established by the City Council to cover the staff and other costs associated with processing a housing development application. These fees are comparable to other area jurisdictions and not considered excessive. The fees charged at the time of the issuance of a building permit for residential development include standard building permit plan check and inspection fees as well as impact fees set by the City. Building fees are set by the Building Code and represent the costs for plan review and inspection of the project construction. Given the nature of these fees, they are not considered excessive in that they are essential to ensure the health and safety of the project construction. Impact fees cover the costs of infrastructure and public services. Given the current tax structure the City must operate under, there are not adequate general funds to provide the services and infrastructure necessary for new residential development, thus development impact fees must be charged to cover the costs of the services or infrastructure requirements. Item 10.b. - Page 169 City of Arroyo Grande 2014-2019 Housing Element 108 School impact fees that have been imposed by the local school district help cover their costs to provide additional building construction needed to support additional school population associated with additional residential development. Development impact fees increase the cost of housing, and proportionally affordable housing. As an incentive to produce more affordable housing, the City eliminated or reduced development impact fees for very low and low-income housing developments, including second units. Water and sewer fees still apply. Table 5-6 Schedule of Typical Fees for Residential Development APPLICATION TYPE BASE FEES Appeals From Community Development Director to Planning Commission $ 263 From Planning Commission decision to City Council $ 263 Certificate of Compliance $ 788 Conditional Use Permit (CUP) Multi Building $ 7,352 Routine (Determined by Director) $ 3,623 Amendment $ 945 Design Review $ 630 Development Agreement $3,151 Development Code Amendment Major (Determined by Director) $ 4,201 Minor (Determined by Director) $ 2,100 EIR/Environmental Studies 5% of EIR or Environmental Doc. Contract and cost of document preparation by consultant or staff (time and materials) General Plan Amendment Major (Determined by Director) $ 7,352 Minor (Determined by Director) $ 1,785 Minor Use Permit Architectural Review $ 315 Minor Exception $ 424 Plot Plan Review $ 420 Specific Plan Major (Determined by Director) $ 7,352 Item 10.b. - Page 170 City of Arroyo Grande 2014-2019 Housing Element 109 Table 5-6 Schedule of Typical Fees for Residential Development APPLICATION TYPE BASE FEES Planned Unit Development Major (Determined by Director) $ 7,352 Minor (Determined by Director) $ 3,623 Pre-Application Review Staff Advisory Committee (per meeting) $ 263 Architectural Review Committee (per meeting) $ 263 Planning Commission (per meeting) $ 263 City Council (per meeting) $ 263 Second Dwelling Unit (see CUP) Tentative Parcel Map (<5 lots) Base Fee $ 1,349 Vesting $ 402 Amendment $756 Tentative Tract Map (>4 lots) Base Fee $ 3,954 Vesting $ 1,043 Amendment $1,996 Source: City of Arroyo Grande. Community Development Department Application Fees, September 2011. The total fees charged at Building Permit issuance for the average single family is approximately $25,000 per unit, which includes building fees and impact fees. For condominium projects, the estimated building and impact fees are estimated at between $18,000 and $20,000 per unit, while the same fees for an apartment are estimated at $18,000 per unit. These fees are one of the substantial costs of housing, but as noted above, these fees are either required by the building code, are needed to finance infrastructure or services, or serve as mitigation for the project impacts. Total fees comprise approximately 5.4 percent of the home purchase price (see Table 5-7). Given the prices of housing in the City and fees in other jurisdictions, fees charged for residential development are not a significant factor contributing to the high housing costs in the City. Item 10.b. - Page 171 City of Arroyo Grande 2014-2019 Housing Element 110 Table 5-7 Proportion of Fee in Overall Development Cost for a Typical Residential Development Development Cost for a Typical Unit Single Family Multiple Family Total estimated fees per unit1 $25,000 $20,000 Median sale price per unit2 $460,000 $339,0003 Estimated proportion of fee cost to overall development cost per unit 5.4% 5.8% Notes 1. Source: City of Arroyo Grande, 2014. 2. Source: SLO County Homes, 20014 3. Median price for condominium in 2014 Permit Processing Timelines Permit processing times in Arroyo Grande are comparable to other cities in the county. Most of the processing times are a result of State mandated reviews and hearings, including the time required for preparation of the required environmental documents. Projects requiring an EIR can be processed in a year. Those not requiring an EIR may be processed in six months or less. While application and permit processing times may seem excessive by some, they are generally prescribed by law. It should be noted that timelines can also change depending on if a proposed project is in a Planned Development Area. Any project within a Planned Development requires City Council approval. The 2001 General Plan Land Use Map eliminated reference to already developed Planned Development (PD) areas, but retained vacant areas. The Development Code and Zoning Map were updated to rezone commercial properties located in Planned Development areas from PD 1.1 and PD 1.2 to Regional Commercial (RC).This change results in shorter permit processing timelines for commercial projects in developed PD areas. The goal of the City of Arroyo Grande Community Development Department is to issue a decision within the time periods listed in Table 5-8. These time periods begin when a complete application is submitted and are extended when additional information is requested by the City. To assist applicants, the City provides the timeframes below for “target issuance date”—when an applicant can expect a decision on their application, and an “initial comments due” date— when they can expect to receive initial review comments from us. Item 10.b. - Page 172 City of Arroyo Grande 2014-2019 Housing Element 111 Table 5-8 Permit Processing Timeline Permit Type Initial Comments Due: Target Issuance Date: Minor Use Permit (administrative) (Formerly Viewshed, Plot Plan, Architectural Review, and Minor Exception permits) 14 days 21 days Temporary Use Permit (administrative) 7 days 14 days Administrative Sign Permit (administrative) 7 days 14 days Conditional Use Permit (discretionary) 30 days 120 days Lot Line Adjustment (discretionary) 30 days 90 days Tentative Parcel Map (discretionary) 30 days 90 days Tentative Tract Map (discretionary) 30 days 120 days Development Code Amendment (discretionary) 30 days 120 days General Plan Amendment (discretionary) 30 days 120 days Specific Plan (discretionary) 30 days 180 days Variance (discretionary) 30 days 90 days Source: City of Arroyo Grande On and Off-Site Improvement Requirements Typical on and off-site improvement requirements for residential subdivisions and/or mixed-use projects are imposed as part of the approval process for a subdivision and/or conditional use permit application. Current improvement standards include submittal of the following improvement plans: grading and drainage; erosion control; street improvements; curb, gutter and sidewalk; public utilities; water and sewer; landscaping and irrigation. These improvement plan requirements are generally based on health, safety and to a lesser extent, aesthetic issues. As with land costs, several variables affect the amount of site improvement costs including site topography and proximity to established roads and utilities. The City requires that curbs, gutters and sidewalks be placed along the frontage of every lot on which new construction is done. Many of these improvements, especially sidewalks, generally are required to provide pedestrian access and access for the handicapped. These costs have been estimated at $45 per linear foot for curb, gutter, and sidewalk for a standard single-family housing subdivision. While these costs contribute to the cost of a housing unit, the improvements required by the City are typical of all cities in the State and do not impose a significant constraint on the development of housing in the City. City regulations are intended to generally encourage high-quality private development and new construction. Improvement requirements also include off-street parking standards. Table 5-9 lists applicable parking space requirements for residential developments. In certain situations, parking Item 10.b. - Page 173 City of Arroyo Grande 2014-2019 Housing Element 112 requirements may be reduced or waived. This includes some alternative parking arrangement options such as common parking facilities and density bonus parking reduction concessions. The Development Code does not require bicycle parking for residential uses, however the City does encourage bicycle parking to reduce traffic congestion and air pollution problems. Off-street disabled/handicapped parking is required in compliance with the California Building Code and California Code of Regulations Title 24. Table 5-9 Residential Parking Standards RESIDENTIAL USE PARKING STANDARD Single-family homes Conventional size lot 2 spaces per unit within an enclosed garage Small lot (PUD) 2 spaces per unit within an enclosed garage and 0.5 space/unit for visitor parking Duplexes 2 space per unit within an enclosed garage and 1 uncovered space per unit Second residential units 1 uncovered space per unit Townhouse and condominiums (Attached ownership units) RESIDENT and VISITOR PARKING: Studio 1 space per unit within an enclosed garage 1 bedroom 1 space per unit within an enclosed garage and .5 uncovered spaces per unit for developments over four units. 2+ bedrooms 2 spaces per unit within an enclosed garage and 0.5 uncovered space per unit for developments over four units. Apartments and multifamily dwellings (rental units) RESIDENT PARKING: Studio 1 covered space per unit 1 bedroom 1 covered space per unit and 0.5 uncovered space per unit for developments over four units 2+ bedrooms 2 covered spaces per unit and 0.5 uncovered space per unit for developments over four units. Senior housing - independent living RESIDENT PARKING: Studio 1 covered space per unit 1 bedroom 1 covered space per unit 2+ bedrooms 1 covered space per unit and 0.5 uncovered space per unit Senior housing - assisted living 1 uncovered space per 3 beds and 1 space per employee on the largest work shift Mobile home parks 2.5 uncovered spaces per unit Large family day care facilities 1 uncovered space per staff person other than the homeowner in addition to the required parking for the residential building Source: City of Arroyo Grande Development Code Item 10.b. - Page 174 City of Arroyo Grande 2014-2019 Housing Element 113 Constraints on Housing for Disabled Persons As part of the governmental constraints analysis, State law calls for the analysis of potential and actual constraints to the development, maintenance and improvement of housing for persons with disabilities. Table 5-10 reviews the Development Code, land use policies, permitting practices, and building codes to ensure compliance with State and federal fair housing laws. Where necessary, the City proposes new policies or programs to remove constraints. Arroyo Grande has not specifically adopted a reasonable accommodation policy or ordinance to accommodate housing or access considerations for persons with disabilities. However, the City does follow California’s handicap and accessibility laws through the implementation of the 2013 California Building Code, which includes the 2012 International Building Code. Program L.2-2 is proposed to provide information about Universal Design to the development community and to consider updating the building code to include Universal Design criteria. Table 5-10 Constraints on Housing for Persons with Disabilities Overarching and General Does the City have a process for persons with disabilities to make requests for reasonable accommodation? Arroyo Grande has not adopted a reasonable accommodation policy or ordinance for persons with disabilities in the enforcement of development and building codes and the issuance of building permits. However, the City allows retrofitting to increase suitability of homes for people with disabilities. Program L.2-1 is proposed to create a reasonable accommodation policy for the City. Has the City made efforts to remove constraints on housing for persons with disabilities? Group homes (residential care facility) of six persons or less are permitted by right in all residential zones in the City. Group homes of seven or more are permitted with a CUP in the VCD, VMU, GMU, FOMU, and OMU mixed-use zones. Does the City assist in meeting identified needs? Program L.2-2 is proposed to provide information about Universal Design to the development community and to consider updating the building code to include Universal Design criteria. Zoning and Land Use Has the City reviewed all its zoning laws, policies, and practices for compliance with fair housing law? Yes, the City has reviewed the land use regulations and practices and is in compliance with fair housing laws. Are residential parking standards for persons with disabilities different from other parking standards? Does the City have a policy or program for the reduction of parking requirements for special needs housing if a proponent can demonstrate a reduced parking need? Section 16.56.070 of the Development Code (Design and paving standards for off-street parking facilities) mandates the provision of disabled parking spaces in accordance with California Building Code (part 2 of Title 24) Chapter 11. In certain situations, parking requirements may be reduced or waived. This includes some alternative parking arrangement options such as common parking facilities and density bonus parking reduction concessions Does the locality restrict the siting of group homes? No. Group homes for less than six people are permitted by right in all residential zones. What zones allow group homes other than those allowed by State law? Are group home over six persons allowed? Group homes (referred to as Residential Care Facilities in the Development Code) of six or less individuals are allowed by right in all residential districts. They are allowed in the Village Core Downtown (VCD), Village Mixed Use (VMU), Historic Character Overlay (HCO), Gateway Mixed Item 10.b. - Page 175 City of Arroyo Grande 2014-2019 Housing Element 114 Table 5-10 Constraints on Housing for Persons with Disabilities Use (GMU), Fair Oaks Mixed Use (FOMU), and Office Mixed Use (OMU) districts with a Minor Use Permit. Facilities with more than 7 residents are allowed in the VCD, VMU, HCO, GMU, FOMU, and OMU districts with a Conditional Use Permit. Does the City have occupancy standards in the zoning code that apply specifically to unrelated adults and not to families? No Does the land use element regulate the siting of special needs housing in relationship to one another? No. There is no minimum distance required between two or more special needs housing. Permits and Processing How does the City process a request to retrofit homes for accessibility? Arroyo Grande allows residential retrofitting to increase the suitability of homes for people with disabilities in compliance with ADA requirements, as permitted in the California Code. Does the City allow groups homes with six or fewer persons by right in single-family zones? Yes Does the City have a set of particular conditions or use restrictions for group homes with greater than six persons? Group homes with greater than six persons are allowed by Conditional Use Permit in the VCD, VMU, HCO, GMU, FOMU, and OMU districts. They are subject to review by the architectural review committee and are required to be incompliance with the same parking and site coverage requirements as multi-family uses. The City does not have a set of conditions of approval for these facilities. What kind of community input does the City allow for the approval of group homes? Group homes (or Residential Care Facilities) of six or less individuals are allowed by right in all residential districts. They require no other planning approval other than to ensure that the development conforms to the standards of the Development Code. The facilities with more than 7 residents are allowed in VCD, VMU, HCO, GMU, FOMU, and OMU districts with a Conditional Use Permit. The Conditional Use Permit provides the public with an opportunity to review the project and express their concerns in a public hearing. Does the City have particular conditions for group homes that will be providing services on site? No, the City does not have special standards or conditions of approval for group homes regarding services or operation. Building Codes Has the locality adopted the Uniform Building Code? Arroyo Grande has adopted the 2013 California Building Code, which incorporated the 2012 International Building Code. No amendments have been made that affect the ability to accommodate persons with disabilities. Has the City adopted any universal design element into the code? With the recommendation of Program L.2-2, the City will encourage the incorporation of universal design in new construction. Does the City provide reasonable accommodation for persons with disabilities in the enforcement of building codes and the issuance of building permits? Arroyo Grande allows for reasonable accommodation for persons with disabilities in the enforcement of building codes and issuance of building permits. Program L.2-1 is proposed to create a reasonable accommodation policy for the City. Source: City of Arroyo Grande Item 10.b. - Page 176 City of Arroyo Grande 2014-2019 Housing Element 115 5.2 Environmental Constraints and Energy Conservation Environmental Constraints The City adopted a General Plan Update in 2001.As part of the process of adopting the update, a program EIR was prepared to address the environmental issues attributed to the growth proposed. It is important to note that the General Plan Update evaluated residential growth that is very similar to that included in the Regional Housing Needs Assessment adopted for the City of Arroyo Grande, except that the General Plan assumes a longer planning period than the Needs Assessment. The General Plan Update EIR concluded that there were three major environmental impacts that were significant and could not be feasibly mitigated to less than significant: water availability, traffic, and air quality. Thus findings and statements of over-riding consideration were adopted. These critical issues are considered constraints on residential development as discussed below. Water Availability According to the 2010 Urban Water Management Plan, the City used approximately 78 percent of its available average annual water resources in 2010. This equates to 156 gallons per capita per day. In March 2014, the San Luis Obispo County Board of Supervisors declared a countywide drought emergency. These water shortfalls highlight the need for continued use of a tiered water rate structure as well as water conservation measures. The implementation of a citywide Water Conservation Program consists of plumbing retrofit, irrigation system assessment, enforcement of City water conservation regulations, washing machine rebates, public information and education programs, and irrigation system improvements or landscape modifications. If the City’s water conservation programs continue to be successful, it is anticipated that current water resources will be sufficient to serve the increased population proposed by the General Plan, and thus, adequate to serve the projected population proposed by the Regional Housing Needs Assessment. Traffic/Circulation The General Plan Program EIR evaluated traffic impacts, both from proposed City development as well as regional impacts of growth. The EIR concluded that many local streets and Highway 101 will be significantly impacted. It is difficult to estimate how significant Highway 101 impacts will be during the timeframe of the General Plan in that the improvements required to serve much of the undeveloped land in the southeast and south portions of the City are not yet planned and likely will not be implemented until after the Housing Element planning period. However, there has been planning progress for Highway 101 interchange improvements in the vicinity of Brisco Road. Despite this, additional development will cumulatively impact area Item 10.b. - Page 177 City of Arroyo Grande 2014-2019 Housing Element 116 roadways and thus is another constraint to continued regional residential development, including within the City. Air Quality Like traffic/circulation, air quality has been determined in the General Plan Program EIR to be a significant impact that cannot be mitigated to less than significant. This is a cumulative impact attributed to additional growth, thus is considered a significant constraint to continued residential regional development, including within the City. Flooding Arroyo Grande is located in a Mediterranean climate with a rainy season lasting from approximately November to March. While rain is possible during other times of the year, these are months where the most substantial rainfall occurs in the City. The waterways with potential for 0.1 percent (100 year) flood events include Canyon/Meadow Creek, Corbett Canyon, Tally Ho, Arroyo Grande, and Los Berros creeks. One of the greatest challenges for the City is managing flood risks that begin upstream and outside City limits. One solution that has been implemented by the San Luis Obispo County Resource Conservation District (RCD) is the creation of a special zone. This RCD zone 1/1A provides funding for flood control projects. Severe flooding events in 2003 indicated that additional flood control measures are required to reduce the long- term risk. Earthquakes and Ground-Shaking There are two faults within the City limits – the Pismo Fault and the Wilmar Avenue Fault. The Pismo Fault is an inactive fault, and presents a low risk to Arroyo Grande. The Wilmar Avenue fault is a potentially active fault that runs through the City and follows Highway 101. California defines potentially active as a fault that has experienced surface rupture within the last 1.6 million years. According to the City’s Local Hazard Mitigation Plan, the Wilmar Avenue Fault presents a moderate risk to the City. The greatest risk to Arroyo Grande for ground-shaking is from the San Andreas Fault and the Hosgri Fault. The San Andreas Fault historically has caused earthquakes greater than 8.0 in magnitude and will likely cause future earthquakes of this magnitude. In December 2003, a 6.5 magnitude earthquake from the Hosgri Fault struck northern San Luis Obispo County. This earthquake resulted in two deaths and damage to 40 buildings. Item 10.b. - Page 178 City of Arroyo Grande 2014-2019 Housing Element 117 There are 26 buildings identified under the Unreinforced Masonry Building Law in Arroyo Grande. The existence of these buildings led to the City establishing a mandatory strengthening program to reduce risk from these buildings. As of 2006, all 26 buildings are in compliance with the local strengthening program. Landslides A majority of Arroyo Grande is at low risk for landslides. The areas at greatest risk are hillsides where steeper slopes are located. The potential for slope stability hazards in valley areas is low to very low. The areas at greatest risk for landslide are just north of Highway 101 in the hillsides and in the eastern sections of Arroyo Grande. Energy Conservation Planning and design to maximize energy efficiency and the incorporation of energy conservation and green building features, contributes to reduced housing costs as well as reduced greenhouse gas emissions. Energy efficient design community design can reduce dependence on automobiles. Residential water heating and heating/cooling are major sources of energy consumption. With the application of energy efficient design and the use of solar power systems, home heating and cooling can be operated on a more efficient and sustainable level. By encouraging solar energy technology for residential heating/cooling in both retrofits and new construction the City can play a major role in energy conservation. There are two distinct approaches to solar heating: active and passive. The best method to encourage use of solar systems for heating and cooling is to not restrict their use in the zoning and building ordinances and to require subdivision layouts that facilitate solar use. Residential water heating can be made more energy efficient through the application of solar water heating technologies. Solar water heating uses the sun to heat water, which is then stored for later use, a conventional water heater is needed only as a backup. Solar water heating systems can lower energy bills and reduce green house gas emissions. Active Systems use mechanical equipment to collect and transport heat, such as a roof plate collector system used in solar water and space heaters. Passive Systems use certain types of building materials to absorb solar energy and can transmit that energy later, without mechanization. Item 10.b. - Page 179 City of Arroyo Grande 2014-2019 Housing Element 118 In response to legislation on global climate change, local governments are required to implement measures that cut greenhouse gas emissions attributable to land use decisions. Executive Order S-E-05 initiated the first steps in establishing greenhouse gas emission reduction targets in California. This was followed by the California Global Warming Solutions Act (AB 32), which required the California Air Resources Board (CARB) to establish reduction measures. In November 2011, the City adopted a Climate Action Plan (CAP). In conjunction with other SLO County jurisdictions, the City secured a $102,940 grant through the California Strategic Growth Council for the “Central Coast Collaborative CAP Implementation and Monitoring Program”. The collaborative implementation and monitoring program is an innovative strategy which will help the region achieve significant GHG reductions and allow them to track these reductions and determine overall progress toward achieving state goals. The program will provide a user- friendly tool to record data associated with CAPs and other GHG-reducing activities, which will result in tangible data regarding the effectiveness of GHG reduction strategies. Therefore, if strategies are not performing as well as initially expected, corrective action can be taken immediately to focus efforts on achieving the largest GHG reductions at the lowest cost. This work program will also include best practices for implementation of one of the GHG reduction strategies; an energy audit and retrofit program. The tools and best practices developed as part of this work program will provide valuable resources which can be implemented in other local and regional jurisdictions across the state In addition to implanting GHG reduction programs as part of the CAP, there are several areas where programs for energy conservation in new and existing housing units are supported by the City:  Through application of State residential building standards that establish energy performance criteria for new residential buildings (Title 24 of the California Administrative Code and California Energy Commission requirements). These regulations establish insulation, window glazing, air conditioning and water heating system requirements.  Through appropriate land use policies and development standards that reduce energy consumption, such as promoting more compact, walkable neighborhoods, with housing close to jobs, community facilities and shopping; planning and zoning for mixed-use and higher density development; and permitting second units. Item 10.b. - Page 180 City of Arroyo Grande 2014-2019 Housing Element 119 The following opportunities for energy conservation are available to the City, homeowners, and developers:  Pacific Gas and Electric (PG&E) provides a variety of energy conservation services for residents and provides several other energy assistance programs for lower income households. These programs include their Energy Watch Partnerships and the Charitable Contributions Program. o The Energy Watch Partnerships help residents lower their energy bills and promote cleaner energy production. Through this program, PG&E has extended the reach of effectiveness of energy efficiency programs, and provided information about demand responses programs, renewable energy and self-generations opportunities. o The Charitable Contributions Program gives millions of dollars each year to non- profit organizations to support environmental and energy sustainability. Projects include residential and community solar energy distribution projects, public education projects, and energy efficiency programs. The goal is to ensure that 75 percent of the funding assist underserved communities, which includes low- income households, people with disabilities, and seniors.  PG&E also offers rebates for energy efficient home appliances and remodeling. Rebates are available for cooling and heating equipment, lighting, seasonal appliances and remodeling (cool roofs, insulation, water heaters). These opportunities are available to all income levels and housing types.  The Solar Water Heating and Efficiency Act of 2007 (AB 1470) created a $250 million, ten- year program to provide consumer rebates for solar water heating systems.  Green Building Executive Order, S-20-04 (CA 2004), the Green Building Initiative set a goal of reducing energy use in public and private buildings by 20 percent by the year 2015, as compared with 2003 levels. The initiative encourages residential development projects to increase energy efficiency percentage beyond Title 24 requirements. In addition projects could implement other green building design (i.e., natural day lighting and on-site renewable, electricity generation). The City could also consider adopting standards that encourage or require specific LEED standards for green building.  The California Solar Initiative required installation of 1 million solar roofs or an equivalent 3,000 MW by 2017 on homes and businesses, increased use of solar thermal systems to Item 10.b. - Page 181 City of Arroyo Grande 2014-2019 Housing Element 120 offset the increasing demand for natural gas, use of advanced metering in solar applications, and creation of a funding source that can provide rebates over 10 years through a declining incentive schedule. The City should access the incentives that will be made available and provide information to developers, to encourage the installation of solar roofs on new residential development. Program M.1-1 has been included to incorporate newly adopted state energy efficiency standards and to encourage alternative energy efficient technologies. 5.3 Non-Governmental Constraints This Section provides information related to constraints to producing housing, specifically affordable housing, that result not from governmental regulation, but from other forces affecting the housing market. Primarily, this examines the economic factors that contribute to the price of housing in Arroyo Grande. Other factors that have an effect on housing costs that are not addressed are sales and marketing costs, property taxes, and developer profits. Land Costs Land costs vary substantially based upon a number of factors. The main influences on land value are location and zoning, and to a degree available supply of land. Land that is conveniently located in a desirable area that is zoned for residential uses will likely be more valuable, and thus more expensive. Based on local real estate sources it is estimated that the median cost per acre if unimproved residential zoned land in the City is $332,000, ranging between $48,000 per acre and $1,200,000 per acre. Currently, some of these vacant lots are located in more rural areas and are encouraged to be subdivided, potentially reducing the cost per acre. Improved lots can be even more costly. The price varies due to the site zoning, with higher density zoned land being more expensive per acre (but less per unit). Land costs present a significant constraint to the production of affordable housing in the City. Construction Costs Construction costs are those incurred in actually constructing a dwelling unit. These costs can vary depending on the location or style of development. Important determinants of construction costs include the amenities built into the unit, materials used, the prevailing labor rate (a significant issue with subsidized affordable housing given recent legislation), and the difficulty of Item 10.b. - Page 182 City of Arroyo Grande 2014-2019 Housing Element 121 building on the site. In Arroyo Grande, expansive soils may necessitate more extensive foundations for housing units. According to the National Association of Home Builders 2013 Construction Cost Survey, the construction costs for a typical single-family home were estimated at $246,500, approximately $95 per square foot. Availability of Financing The availability of financing affects the ability to purchase or improve homes. In the Arroyo Grande area, 474 loan applications for home purchase or improvements were received in 2012, of which 349 were conventional loans. Of the 349 conventional loan applications, 314 were for home purchase and 35 were for home improvements. Only 4.9 percent of the 349 conventional loans were denied, 11.7 percent were withdrawn or not accepted by applicant, and 54.2 percent were approved and accepted. There were 125 applications for government assisted home purchase or improvement loans (VA, FHA, FSA/RHS) in 2012. Of these, 52, or 41.6 percent of government assisted loans were approved and accepted by the applicant. Table 5-11 shows the breakdown of loan applications by type, purpose and outcome. Table 5-11 Applications for Loans Number Percent Type of Loan Total 474 173.6% Conventional 349 73.6% Government assisted 125 26.4% FHA-insured 96 76.8% VA-guaranteed 29 23.2% Loan purpose Conventional 349 100.0% Home Purchase 314 90.0% Home Improvement 35 10.0% Government assisted 125 100.0% Home Purchase 124 99.2% Home Improvement 1 0.8% Loan Outcome Conventional 349 100.0% Approved and accepted 189 54.2% Denied 17 4.9% Withdrawn or not accepted 41 11.7% Closed/Incomplete 7 2.0% Purchased by Institution 95 27.2% Item 10.b. - Page 183 City of Arroyo Grande 2014-2019 Housing Element 122 Table 5-11 Applications for Loans Government assisted 125 100.0% Approved and accepted 52 41.6% Denied 11 8.8% Withdrawn or not accepted 14 11.2% Closed/Incomplete 1 0.8% Purchased by Institution 47 37.6% Source: Consumer Financial Protection Bureau 2012 Most (85.6 percent) applicants for government assisted loans had an annual income equivalent to or greater than the County median income of $60,264 in 2012. Similarly, over 85.6 percent of conventional loan applicants earned greater than the County median income. Of all originated loans, 16.2 percent were awarded and accepted by applicants with less than median household income. Insurance Availability One of the significant issues identified by the City as reported by local developers is the cost and/or availability of workers compensation and liability insurance. These types of insurance have become very costly or are not available at all. This is having a negative effect on the likelihood of construction of multi-family units such as condominiums and apartments as well as a substantial cost per unit. This situation has escalated to a point that only single-family residential development appears profitable. This has and continues to be a constraint to multi-family and condominium development, which are the types of housing most feasible for affordable housing. This is a situation that needs to be addressed at the State level in that it is generally out of the control of the City. Item 10.b. - Page 184 City of Arroyo Grande 2014-2019 Housing Element 123 Chapter 6 Review of the Previous Housing Element This Chapter evaluates and reports on the status and implementation of the programs of the 2007-20014 Housing Element. The main purpose is to evaluate which programs were successful and should be continued, and which programs were ineffective and should be eliminated or modified. Table 6-1 summarizes the City’s previous RHNA for the period from January 2007 through December 2013 and the number of housing units built or approved during that planning period. The City needed to account for 362 units during the 2007-2014 period. From January 2007 through December 31, 2013, the City constructed or approved 363 units and 19 second units . The City met the above moderate income housing needs for the 2007-2014 planning period. Table 6-1 Progress Toward Meeting Goals 2007-2014 Very Low Low Moderate Above Moderate Total (added across) 2007-2014 RHNA 84 59 67 152 362 Units Constructed/Approved 23 25 51 264 363 Second Units Constructed/Approved 0 19 0 0 19 Remaining 2007-2014 RHNA 61 15 16 0 92 Source: Regional Housing Needs Plan 2013, San Luis Obispo Council of Governments, City of Arroyo Grande 6.1 Evaluation of 2007-2014 Housing Element Programs Below are the programs identified in the 2007-2014 Housing Element followed by a brief evaluation or status comment. A.1-1. The City shall establish a five-year schedule of actions to implement the goals and policies of the Housing Element. Response: An implementation schedule of goals and policies are outlined in the Housing Element but many of the programs associated with these goals and policies have not yet been implemented. This program will continue to be implemented. A.1-2. Report annually on the City’s progress in meeting its fair share housing targets . Provide the collected information to the Department of Housing and Community Development Item 10.b. - Page 185 City of Arroyo Grande 2014-2019 Housing Element 124 (HCD),development community, and non-profit housing developers. HCD provides specific instructions and a template for the annual report. Response: The program is on-going. This program will be continued. A.1-3. The City shall amend the Development Code to revise the requirements for the Traffic Way Mixed Use District to remove the limitation to only live-work residential uses. A mix of residential use types shall be allowed as allowed in all of the mixed use zoning districts (except the Industrial Mixed Use District). The Development Code shall also be amended to allow residential projects at densities up to 20 units per acre in the Traffic Way Mixed Use District. Response: The City has not amended the Development Code has not yet been amended regarding the limitations on uses nor the density in the Traffic Way Mixed Use District. This program will continue to be implemented. A.2-1. The City shall continue to encourage and publicize on the City’s website the secondary dwelling program to increase public awareness. Response: Currently the City provides information about secondary dwelling units on the City’s website, including development standards, procedures, and fees. This program will be continued. A.3-1. The City shall amend the Municipal Code to provide incentives for the development of affordable housing projects, including expedited permitting, providing financial assistance through the City’s Inclusionary Housing Trust Fund, requiring lot consolidation, and providing greater flexibility in development standards. Response: The Municipal Code has not yet been amended to include incentives for affordable housing projects. This program has not successfully implemented and will be continued. Item 10.b. - Page 186 City of Arroyo Grande 2014-2019 Housing Element 125 A.3-2. The City shall amend the Development Code to include the definition of “Extremely Low - Income” as defined by Section 50093 of the California Health and Safety Code. Response: The definition of “Extremely Low -income” has not yet been included in the Development Code. Extremely low-income households earn 30 percent or less of the median household income. This program will be continued. A.3-3. The City shall amend the Development Code to provide additional incentives specific for extremely low-income housing projects. Incentives may include flexible standards for on- and off-site improvements such as reduced parking requirements, reduced curb, gutter, and sidewalk requirements; reduced or deferred water and/or sewer connection fees; permit streamlining procedures and development review; or financial incentives and assistance. Response: The City has not yet amended the Development Code, regarding additional incentives for extremely low-income housing projects. This program will be continued. A.10-1. To facilitate affordable housing, the City shall comply with State Density Bonus Law. The City shall update Development Code Chapter 16.82 to comply with AB 2280. The City will continue to update Chapter 16.82 on an ongoing basis to comply with any future updates to State Density Bonus law (Government Code Section 65915) as well as evaluate proposed Development Code amendments to assess whether they pose any constraints to developer utilization of density bonuses. Response: The City has not completed the Development Code amendment to comply with recent changes to State Density Bonus Law. This program will be continued. A.10-2. The City shall evaluate and amend the Planned Unit Development (PUD) Permit procedures in the Development Code (Section 16.16.060) to provide more predictable options for small lot infill projects in the City’s Residential land use designations. Item 10.b. - Page 187 City of Arroyo Grande 2014-2019 Housing Element 126 Response: The Development Code has not been amended regarding the PUD permit procedures. This program will be continued. A.12-1. The City shall continue to maintain its Geographical Information System (GIS) mapping and planning database inventory of vacant and underutilized “opportunity sites”. Response: The City maintains a GIS database inventory of vacant and underutilized “opportunity sites”. This program has been successfully implemented and will be continued. A.14-1. The City shall amend the Development Code to include a definition of the term “Attainable housing.” Response: The Development Code has not yet been amended to include the definition of “Attainable housing”. This effort will be achieved through an “Affordable Housing” program. The City envisions assessing whether proposed projects include “Attainable Housing” as applications are submitted. This program will be continued. B.1-1. The City shall continue tracking all residential projects that include affordable housing to ensure that the affordability is maintained for at least 45 years for owner-occupied units and 55 years for rental units, and that any sale or change of ownership of these affordable units prior to satisfying the 45 or 55-year restriction shall be “rolled over” for another 45 or 55 years to protect “at-risk” units. Response: The City tracks all affordable projects through a database, inputting any updates regarding ownership or affordability when they occur. This program will be continued. Item 10.b. - Page 188 City of Arroyo Grande 2014-2019 Housing Element 127 B.2-1. The City shall continue to contract with the Housing Authority of San Luis Obispo (HASLO) for the monitoring of affordable units to ensure compliance. Response: The City has an Agreement with the Housing Authority of San Luis Obispo (HASLO) for affordable housing eligibility verification and compliance. The City is also a member of the San Luis Obispo Housing Trust Fund (SLOCHTF), which provides ongoing technical assistance. This program will be continued. C.1-1. The City shall continue to allocate financial resources to augment extremely low, very low and low-income housing development based on the financial projection of the Inclusionary Affordable Housing Trust Fund. Response: The Inclusionary Affordable Housing Trust Fund will continue to devote funds to affordable housing projects for people of extremely low, very low and low income. This program will be continued. C.4-1. The City shall continue to meet with local non-profit and private developers semi- annually, or more frequently if opportunities arise, to promote the extremely low, very low, and low-income housing programs outlined in the Housing Element. The City shall direct private housing developers to funding sources(such as federal and State housing grant fund programs and local housing trust funds) to promote affordable housing as outlined in the policies of Goal C. Response: The City will continue to promote the development of affordable housing opportunities for people of extremely low, very low and low income. This program will be continued. C.4-2. The City shall continue to participate in financial incentive programs established by the San Luis Obispo County Housing Trust Fund (SLOCHTF), such as a revolving loan program. Response: The City continues to receive local housing funding through the SLOCHTF. Item 10.b. - Page 189 City of Arroyo Grande 2014-2019 Housing Element 128 This program will be continued. D.1-1. The City shall encourage specific plans for land within its Sphere of Influence that include increased residential capacity for multiple-family development. Response: Multiple family developments will continue to be encouraged through specific plans. This program will continue to be implemented. E.4-1. When necessary, the City shall continue to work with property owners of deed restricted affordable units who need to sell within 45 years of initial sale. When the seller is unable to sell to an eligible buyer within a specified time period, equity sharing provisions are established (as per the affordable housing agreement for the property) whereby the difference between the affordable and market value is paid to the City to eliminate any incentive to sell the converted unit at market rate. Funds generated would then be used to develop additional affordable housing within the City. Response: The City will continue to support the affordable housing agreement of properties, working with property owners, as needed, who need to sell of deed restricted affordable units. This program will be continued. F.1-1. The City shall evaluate and amend the inclusionary affordable housing requirements in the Development Code (Chapter 16.80)based on experience using the requirements in producing affordable units. Potential changes to the requirements include: (1) consider contracting with a housing management organization to manage deed-restricted affordable units in the City; (2) consider adding incentives to encourage construction of rental units; and (3) investigate extending the income categories served by the inclusionary requirements to extremely low income households. The City will engage the development community during the evaluation process. Response: The City has not amended the Development Code regarding the inclusionary affordable housing requirements. Item 10.b. - Page 190 City of Arroyo Grande 2014-2019 Housing Element 129 This program will be continued. F.1-2. The City shall amend the inclusionary affordable housing requirements in the Development Code (Chapter 16.80)to eliminate inclusion of moderate-income units in the requirements. Response: The City has not amended the Development Code, eliminating the inclusion of moderate-income units in the inclusionary affordable housing requirements. This program will be continued. F.1-3. The City shall amend the in-lieu fee as called for in the inclusionary affordable housing requirements in the Development Code (Chapter 16.80). Response: The City has not amended the Development Code. This program will be continued. G.1-1. The City shall continue to contract with the Housing Authority of San Luis Obispo (HASLO) to maintain a mailing list of persons interested in development projects containing affordable housing. Agendas for all City meetings related to these projects shall be mailed to persons on the mailing list. The City shall also continue to post the agendas on the City’s website. Response: This program will be continued. G.1-2. The City shall encourage construction and/or rehabilitation of housing units for low, very- low, and extremely low income households by developing and implementing incentive-based programs such as fee reductions, fee waivers, flexible development standards, updating the City’s second unit ordinance to reduce barriers to second units d evelopment in residential zones, and similar programs. Response: This program will be continued. H.1-1. The City shall continue to contract and coordinate with the San Luis Obispo Housing Authority to maintain and expand Section 8 rental housing assistance to qualified households. Item 10.b. - Page 191 City of Arroyo Grande 2014-2019 Housing Element 130 Response: The City coordinates with HASLO regarding Section 8 housing assistance when needed. This program will continue to be implemented. H.1-2. The City shall develop a program to offer housing developers an alternative to meet affordable housing requirements by contributing some “sweat equity” on projects where existing housing units will be rehabilitated or conserved and where appropriate, deed-restricted as affordable as per the City’s Affordable Housing Program. Response: This program will be continued. H.2-1. The City shall continue to consider abatement of unsafe or unsanitary structures, including buildings or rooms inappropriately used for housing, contrary to adopted health and safety codes. Where feasible, the City will encourage rehabilitation and allow reasonable notice and time to correct deficiencies. Where necessary and feasible, extremely low, very low and low-income residents displaced by abatement action shall be eligible for relocation assistance, subject to Council approval. Response: This program will be continued. I.1-1. Written notice shall be required prior to the conversion of any units for low-income households to market rate units in any of the following circumstances:  The units were constructed with the aid of government funding  The units were required by an inclusionary zoning ordinance  The project was granted a density bonus  The project received other incentives The property owner should work with the City and affordable housing developers, such as HASLO, to identify qualified buyers and/or funding prior to conversion. In cases where conversions occur, notice shall at a minimum be given to the following:  The City of Arroyo Grande  State Department of Housing and Community Development  San Luis Obispo Housing Authority  Residents of at-risk units Item 10.b. - Page 192 City of Arroyo Grande 2014-2019 Housing Element 131 Response: This program will be continued. I.2-1. The City shall annually monitor the status of affordable housing developments. If any property owners indicate plans to convert affordable units to market rate pricing, or if the City identifies market conditions indicating potential for “at risk” unit conversion, the City will contact qualified non-profit organizations or other agencies and explore opportunities to assist and facilitate the transfer ownership of “at risk” units. Response: The City monitors the development of affordable housing, classifying the development of new units based on income brackets of very low, low, moderate and above moderate. The City will continue to ensure the availability of affordable housing units for people of very low and low income. This program will be continued. J.1-1. The City shall continue to promote housing opportunities for seniors and other special needs groups by identifying sites suitable for senior and transitional housing and considering other incentives to promote senior and transitional housing. Single-room occupancy units (SROs) shall be added to the use tables in the Development Code allowed in all Mixed-Use zones with a conditional use permit. SROs shall be allowed in the MFVH zone district with a minor use permit. Response: Within the planning period, one project included the expansion of an existing assisted living facility by 17 units (“Alder House”). Recently, a 69 unit assisted living facility was approved. This program will be continued. K.1-1. The City shall continue to participate in the South San Luis Obispo County working group cooperating with other cities, the county and other agencies in the development of programs aimed at providing homeless shelters and related services. Response: The City continues to work the county and other relevant agencies in providing homeless shelters and related services. This program will be continued. Item 10.b. - Page 193 City of Arroyo Grande 2014-2019 Housing Element 132 K.2-1. The City shall amend the Development Code to allow emergency shelters without a conditional use permit or other discretionary permits in appropriate locations in compliance with SB 2, the “Fair Share Zoning” law . The Development Code amendment shall include a definition for “emergency shelter.” Emergency shelters are currently not allowed in commercial mixed-use districts, and are allowed through the Conditional Use Permit process in the Condominium/Townhouse (MF), Apartments (MFA) and Multifamily Very High Density (MFVH) residential districts. The Development Code shall be updated to require administrative approval only for emergency shelters in the Industrial Mixed-Use (IMU) and Highway Mixed-Use (HMU) districts. These commercial districts have sufficient capacity to house emergency shelters with approximately 18 acres of vacant or underutilized land available. The IMU district has several large parcels totaling almost 13.5 acres with ten (10) acres that are currently used as storage and/or construction yards with small or no permanent structures. The HMU district has less potential, although there are about four acres with a couple of large vacant parcels totaling 1.64 acres. About 6.36 of the 18 acres have some type of permanent structure on the individual parcels, but could be redeveloped to accommodate transitional housing. Transitional and supportive housing shall be defined as residential uses subject to the same standards that apply to other housing. The Development Code can include locational and operational criteria for emergency shelters such as: • Proximity of public transit, supportive services, and commercial services; • Hours of operation; • External lighting and noise; •Provision of security measures for the proper operation and management of a proposed facility; • Measures to avoid queues of individuals outside proposed facility; and • Compliance with county and State health and safety requirements for food, medical, and other supportive services provided onsite. Such criteria can act to encourage and facilitate emergency shelters and transitional housing through clear and unambiguous guidelines for the application review process, the basis for approval, and the terms and conditions of approval. The City will solicit input from local service providers and the South San Luis Obispo County working group in the preparation and adoption of the amendment to the Development Code Item 10.b. - Page 194 City of Arroyo Grande 2014-2019 Housing Element 133 to ensure that development standards and permit processing will not impede the approval and/or development of emergency and transitional housing. Response: The Development Code has been amended to establish emergency shelters without a conditional use permit and to define transitional and supportive housing as a residential use subject to the same restrictions of a residential use in the same zone. This program has been implemented. K.2-2. The City shall implement an overnight parking program for the homeless in appropriate zoning districts. Response: An overnight parking program has not yet been implemented. A pilot safe overnight parking program was approved through a Temporary Use Permit (TUP) at St. Barnabas church in 2012. Observations from the pilot program were as follows: the program was not fully utilized (only 3 applications were submitted to participate in the program, one of which met the program criteria and was approved); there were no reported incidents specific to the program; there were no violations of any conditions of the TUP; and neighbors remained concerned that their neighborhood would be impacted by the program. The program was discontinued at the request of the church. This program will be continued. L.1-1. The City shall explore models to encourage the creation of housing for persons with disabilities, including developmental disabilities. Such models could include coordinating with the Tri-County Regional Center and other local agencies in encouraging affordable housing projects to dedicate a percent of housing for disabled individuals; assisting in housing development; providing housing services that educate, advocate, inform, and assist people to locate and maintain housing; and models to assist in the maintenance and repair of housing for persons with developmental disabilities. Response: The City will continue to explore models to encourage development of housing for persons with disabilities. This program will continue to be implemented. Item 10.b. - Page 195 City of Arroyo Grande 2014-2019 Housing Element 134 L.2-1. The City shall create a policy or amend the Development Code to provide persons with disabilities seeking equal access to housing an opportunity to request reasonabl e accommodation in the application of City building and zoning laws. Response: The City has not amended the Development Code to provide an opportunity to request reasonable accommodation for persons with disabilities. This program will be continued. L.2-2. The City will have brochures on universal design available at the Community Development Department front counter. The City will also consider updating the building code to encourage use of universal design in home design. Universal design is based on the precept that throughout life, all people experience changes in their abilities. The goal of universal design is to provide environments that are usable by all people, to the greatest extent possible, without the need for specialization in design and construction and/or facilitate change in occupancy over time. Response: The City has not yet made progress promoting the universal design concept. This program will be continued. M.1-1. The City shall continue working to implement a water and electrical retrofit program for existing housing units. A plumbing retrofit program was established in 2004, and water conservation rebate programs were established in 2009. The City will continue to work with PG&E and other agencies to establish an electrical retrofit program. Response: The City has continued to promote Water Conservation Incentive programs, including the Plumbing Retrofit Program as well as rebate and education programs. The City has also been involved in the San Luis Obispo County Energy Watch, a joint project between San Luis Obispo County, Pacific Gas and Electric Company and Southern California Gas Company. In 2013 the City adopted a Climate Action Plan and partnered with San Luis Obispo County jurisdictions to receive a California Strategic Growth Council grant to develop an implementation and monitoring program. The Item 10.b. - Page 196 City of Arroyo Grande 2014-2019 Housing Element 135 program provides tools and best practices for implementing all CAP programs, such as the energy audit and retrofit program. This program will be modified and continued. M.1-2. The City shall establish a program to allow residential projects to receive minor exceptions if they meet 25% of items on the Tier 1 list of the California Green Building Code (Title 24) or 15% of items on the Tier 2 list of that code. Response: The City has yet to establish a program regarding minor exceptions for residential projects that meet a minimum number of items from the California Green Building Code. This program will be continued. N.1-1. The City will continue to promote the enforcement of policies of the State Fair Employment and Housing Commission, and shall resolve housing discrimination complaints through assistance from HUD, and/or local, regional private fair housing organizations. The City will prepare a brochure that promotes equal housing opportunities and addresses discrimination . The brochure will be available at the Community Development department and a link to download the brochure will be placed on the City’s website. In addition the City shall disseminate information in one or more of the following ways to ensure the public is aware of Fair Housing Law: • Distribute materials to property owners and apartment managers twice a year. • Make public service announcements through multiple media outlets including newspaper, radio, television, and social media to run on a regular basis. • Conduct public presentations with different community groups once or twice a year. Response: The City has not yet prepared a brochure to promote equal housing opportunities and address discrimination or disseminated information about the Fair Housing Law to the public. This program will be continued. Item 10.b. - Page 197 City of Arroyo Grande 2014-2019 Housing Element 136 O.1-1. Prior to any public hearing where the City is considering amending or updating its Housing Element or housing policies, the City will notify all local housing organizations, as well as social service agencies, and post notices at significant locations. Response: The City will continue to notify the necessary organizations, agencies and other parties when amending or updating the Housing Element or housing policies. This program will be continued. P.1-1. Following amendment of the General Plan Conservation/Open Space and Safety Elements to comply with AB 162 related to floodplain mapping, the City will amend the Housing Element if needed for consistency. Response: The City has not yet amended the General Plan Conservation and Safety Elements to comply with AB 162. Following any amendments, the Housing Element will be modified, as necessary. This program will be continued. Item 10.b. - Page 198 City of Arroyo Grande 2014-2019 Housing Element 137 APPENDIX A BIBLIOGRAPHY California Department of Housing and Community Development, Income Limits, June 2011. California Department of Housing and Community Development, Housing Element Questions and Answers, June 2001 City of Arroyo Grande, adopted Housing Element, 2007 City of Arroyo Grande, Urban Water Management Plan, 2010 City of Arroyo Grande, Housing Element, June 1993 City of Arroyo Grande, 2001 General Plan Policy Document and Elements, October 2001 City of Arroyo Grande, 2001 General Plan Integrated Program Environmental Impact Report, May 2001 Craigslist, current rental prices in Arroyo Grande for studios and granny units, July 2011 San Luis Obispo Council of Governments, Regional Housing Needs Plan, June 2013 San Luis Obispo County, Department of Planning and Building, Affordable Housing Standards, February 2014. San Luis Obispo County, Tribune Newspaper, SLO County home sales decline, but median price rises in May, June 24, 2014. Taylor, H. Economics and Housing Policy National Association of Builders Tri-Counties Regional Center, 2012 Performance Report for Tri-Counties Regional Center, retrieved from http://www.tri-counties.org/phocadownload/tcrcpcyearendrpt-2012.pdf United States Department of Commerce, Bureau of the Census, 2006-2010 ACS Estimates United States Department of Commerce, Bureau of the Census, 2010 United States Department of Commerce, Bureau of the Census, 2000 United States, Department of Housing and Urban Development (HUD),2007-2011 Comprehensive Housing Affordability Strategy (CHAS), retrieved fromhttp://www.huduser.org/portal/datasets/cp/CHAS/data_querytool_chas.html . . Item 10.b. - Page 199 THIS PAGE INTENTIONALLY LEFT BLANK Item 10.b. - Page 200