AGENDA TITLE:
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Public Hearing to Consider Adopting a Motion to Approve the 2023 Housing Element Annual Progress Report and Direct Staff to Transmit the Report to the California Department of Housing and Community Development and the Governor’s Office of Planning and Research (CD)
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MEETING DATE:
March 20, 2024
PREPARED BY:
Cynthia Marsh, City Planner
recommendation
RECOMMENDED ACTION:
Public hearing to consider adopting a motion to approve the 2023 Housing Element Annual Progress Report and direct staff to transmit the report to the California Department of Housing and Community Development and the Governor’s Office of Planning and Research.
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BACKGROUND INFORMATION:
The California Department of Housing and Community Development requires all jurisdictions in the state to prepare annual progress reports on implementation of its Housing Element. California Government Code Section 65400 states that the report shall be considered at an annual public meeting before the legislative body where members of the public shall be allowed to provide oral testimony and written comments.
The purpose of the 2023 Housing Element Annual Progress Report (2023 APR) is to track and monitor progress in addressing the City’s housing needs, goals, and policies on an annual basis. The 2023 APR summarizes the City’s activities in the last calendar year related to implementation of the current General Plan Housing Element, which was adopted by the City Council in April 2016. This 2023 report will be the final APR for the 5th Cycle Housing Element, with reporting beginning on the new 6th Cycle Housing Element next year.
California Government Code Section 65400 requires the City to file an annual report addressing the status of the Housing Element, progress made toward implementing its goals and policies, and progress in meeting its share of the Regional Housing Needs Allocation. The report must be submitted to the California Department of Housing and Community Development (HCD) and the Governor’s Office of Planning and Research.
HCD has specific reporting requirements for housing elements, which consist of a series of tables. The tables summarize the City’s progress during the given year in producing various types of housing units and implementing programs contained in the Housing Element.
HCD requires reporting on the number of entitlement applications for housing units submitted and approved, and the number of building permits issued, during the year (Tables A, A2, and B), including the type of units (single-family, multiple-family, etc.) and the level of affordability (very low, low, moderate, and above moderate income). Table D of the annual report tracks the City’s implementation of policies and programs in the Housing Element. The City’s Housing Element Annual Progress Report for the 2023 calendar year is attached to this report.
Summary of New Housing Units Permitted
The report demonstrates that the City processed planning entitlements for 295 new residential units. In addition, the City issued 150 building permits in 2023 for construction of new residential units. HCD requires the City to report the affordability levels of all new permitted units; according to the reporting methodology, 29 permitted units are considered affordable to moderate incomes and 121 permitted units are considered affordable to households with above moderate incomes.
As stated in the City’s current Housing Element, for the 2014-2023 regional planning cycle, Lodi’s RHNA is 1,931 new residential units. As of the end of 2023, the City had permitted 1,787 new units during the planning cycle. As shown in Table B - Regional Housing Needs Allocation Progress, Lodi has significantly exceeded the RHNA for above moderate-income units (i.e. market-rate units) - 1,619 units permitted compared to 770 required per the RHNA - but is falling short of meeting the RHNAs for new units at lower levels of affordability. To have met the RHNA at all affordability levels for the 2014-2023 planning period, Lodi would have needed to issue additional building permits for:
• 445 units that are affordable to very low-income households (earning below 50 percent of the area median income, or AMI)
• 304 units that are affordable to low-income households (earning between 50 and 80 percent of AMI)
• 244 units that are affordable to moderate-income households (earning between 80 and 120 percent of AMI)
These numbers illustrate the need for the City of Lodi to encourage and facilitate the development of more below market rate housing units that would be affordable to households in the very low, low, and moderate-income brackets.
It is noted by HCD that State Housing Element Law requires that jurisdictions plan for all types of housing based on the allocations they receive from the RHNA process. The state requires this planning, in the form of having a compliant housing element, and submitting housing element annual progress reports, as a threshold. HCD may refer jurisdictions to the Attorney General if they do not have a compliant housing element, fail to comply with their HCD-approved housing element, or violate housing element law, the housing accountability act, density bonus law, no net loss law, or land use discrimination law. The consequences of those cases brought by the Attorney General are up to the courts, but can include financial penalties. Additionally, the State has the ability to withhold funding in certain circumstances from non-compliant jurisdictions which can increase the impact of penalties to the jurisdiction.
To date, the City’s approved Housing Element is compliant through 2023 and has met all annual reporting requirements as prescribed by HCD.
Housing Element Program Implementation
The following are highlights from the City’s accomplishments in 2023 on implementing the programs outlined in the Housing Element.
Program 1.1: Revise Development Code
In FY2023-2024, the City began implementing phased incremental code amendments, which are anticipated to include expanded housing typologies, including "missing middle" housing types.
1.5 Pursue State and Federal Funds in Support of Housing Construction
The City continues to meet with the San Joaquin County Housing Authority and other affordable housing developers to discuss potential affordable housing projects, opportunities to partner on those projects, and invites it to apply for CDBG grant funds and to participate in the process of applying for CDBG funds in connection with the City. In 2022 and 2023, the City awarded funding to the Housing Authority of San Joaquin (HACSJ) under their development agency Delta Community Developers Corporation for rehabilitation of "Creekside," an existing affordable housing apartment complex. Additionally, in 2023 the City partnered with HACSJ and provided land as an equity stake in 108 units of affordable senior housing with veteran preference. HACSJ will be working to finance and develop this project over the next several years with the support of the City.
1.7 Provide Rental Assistance
The City continues to work with the HACSJ to secure Housing Choice Vouchers. In 2022, 4 tenant-based vouchers were used to assist the Harmony Homes project. Additionally, the new Salas Park Senior Affordable Housing Project will be supported with a mix of housing choice vouchers and tax credits to subsidize rental prices.
1.8 Focus on Neighborhood Improvement Initiatives
The implementation of housing and neighborhood improvement programs is completed through the combined efforts of the Community Development Director, Neighborhood Services Manager, Program Specialist, City Manager’s Office, consultants, Lodi Committee on Homelessness, Lodi Improvement Committee, City staff, and other volunteers. The City has completed an updated 6th Cycle Housing Element and a five-year Consolidated Plan and is currently working on the certification of both documents.
1.9 Annex Land to Accommodate Future Housing Needs as Necessary
The City updated its Sphere of Influence and Municipal Services Review in 2022 to and is now in discussions with property owners of lands designated for residential uses regarding annexation of lands to the City, however, several million dollars in funding is needed for expansion of electric and water/sewer services.
1.12 Subdividing Large Sites for Lower-Income Households
As sites are annexed into the city limits for large subdivision development, the City is requiring developers to dedicate a portion of each site to the city for purposes of issuing a Request for Proposals (RFP) to locate an affordable housing developer to develop the dedicated portion of the site with affordable housing.
2.6 Target the Eastside Area for Use of Funds for Public Improvements
The City continues to use its annual CDBG allocation for public improvement projects, such as the Alley Improvement Project - This project improves alleyways that suffer from damaged pavement and poor drainage by removing existing pavement, installing proper drainage systems, and repaving each alleyway. In 2022-2023 and 2023-2024 Hale Park received CDBG funding for several upgrades including parking lot repaving, court resurfacing, and fencing repairs. Applications are now being accepted for City Departments for the 2024-2025 program year.
4.1 Promote Fair Housing Services
The City is currently working on an update to the Analysis of Impediments to Fair Housing Choice to coincide with the 5-year Consolidated Plan update. San Joaquin Fair Housing (SJFH) provided fair housing assistance, including education, counseling, and mediation services to the residents of San Joaquin County. SJFH assisted 1,016 Lodi households in the 2022-23 program year. The program goals are to ensure fair housing, and to teach and advocate tenant and landlord rights and responsibilities regarding providing and maintaining adequate and safe housing. SJFH helped mediate conflicts between tenants and landlords and provided educational opportunities. By educating both tenants and landlords, the program works to assist in the process of mitigating housing discrimination in Lodi and promoting fair housing opportunities regardless of a person’s disability, religion, race/ethnicity, color, country of origin or ancestry, age, sex, gender identification/expression, familial status, source of income, marital status, or sexual orientation. These services have become increasingly important as the eviction moratoriums expired during the COVID-19 pandemic and rental prices continue to increase.
4.3 Pursue Regional Solutions to Homeless Needs
The City of Lodi received approval from City Council in October 2021 to purchase a site for development the Access Center and Emergency Shelter. On July 22, 2022, the City opened a temporary emergency shelter that has the capacity to house up to 49 unsheltered and provide services including, housing navigation, income advocacy, mental health and substance use treatment, job readiness training, etc. These services are similar to what will be provided at the permanent Access Center, once complete. The permanent Access Center is planned for development over approximately 18 months. Additionally, the City has recently acquired a 40-unit hotel and is in the process of rehabilitation to convert into 40 units of transitional housing.
4.6 Facilitate the Development of Project-Based Section 8 Units
The City is working in collaboration with HACSJ on a 108-unit affordable housing project. Its primary residents will be seniors and veterans. The City has allocated the land as an equity stake in the project and will support the HACSJ through entitlements and seeking grant resources to complete the project. The City is looking at further opportunities to collaborate in 2024 on grant applications for affordable housing.
Staff recommends that the City Council approve the 2023 Housing Element Annual Progress Report and direct staff to transmit the report to the California Department of Housing and Community Development and the Governor’s Office of Planning and Research before the deadline of April 1, 2024.
STRATEGIC VISION:
4C. Housing: Continued progress towards Regional Housing Needs Assessment goals.
FISCAL IMPACT:
Not applicable.
FUNDING AVAILABLE:
Not applicable.