File #: 14-072    Version: 1 Name: Staff Report CY13 Annual Progress Report
Type: Staff Report Status: Filed
In control: City Council
Meeting Date: 5/19/2014 Final action: 5/19/2014
Enactment date: Enactment #:
Title: Staff Report for a Resolution Approving the City of San Leandro 2013 Housing Element Annual Progress Report
Sponsors: Cynthia Battenberg
Related files: 13-581, 13-580, 13-563, 13-564, 14-073, 17-027, 17-028
Title
Staff Report for a Resolution Approving the City of San Leandro 2013 Housing Element Annual Progress Report
 
Staffreport
SUMMARY AND RECOMMENDATIONS
 
Staff recommends that the City Council review and approve the 2013 Annual Progress Report related to the status and progress in implementing the current Housing Element Update.  The Annual Progress Report is accompanied by a resolution to meet State reporting requirements, which will then be forwarded to the California Department of Housing and Community Development (HCD) and Governor's Office of Planning and Research pursuant to Government Code Section 65400.  
 
BACKGROUND
 
The Housing Element is one of the seven required elements of the San Leandro General Plan.  The current Housing Element Update covers the period from 2007-2014 and incorporates new data, new housing targets, and new State requirements.  In April 2010, the City Council adopted the City's current Housing Element Update.  The State certified the City's Housing Element Update in February 2011.
 
Pursuant to Government Code Section 65400, cities and counties must submit an Annual Progress Report every year to the State.  Because some State Housing and Community Development Programs have made submittal of the report a funding eligibility requirement, cities and counties are further incentivized to annually complete and submit their Annual Progress Reports.
 
Analysis
 
The purpose of the report is to track and monitor the status and progress to address the City's housing needs and goals.  The primary Housing Element goals and objectives include:
 
1.      New housing opportunities
2.      Affordable housing development
3.      Administration of housing programs
4.      Home ownership
5.      Affordable housing conservation
6.      Green and sustainable neighborhoods
7.      Special needs populations
8.      Elimination of housing constraints
9.      Fair housing
 
The State also uses the Annual Progress Report to monitor progress by cities and counties on achieving their Regional Housing Needs Allocation (RHNA) goals.  State law requires that each city and county ensure that its "fair share" of regional housing accommodate community needs at all income levels. The Association of Bay Area Governments (ABAG) allocated to San Leandro RHNA targets of 1,630 total housing units for the 2007-2014 period at various income levels as shown in the following table.  While the State requires that local jurisdictions meet their RHNA goals through adequate zoning, comparing actual housing production to the goals can be informative by gauging progress. Shown below is the City's total production of housing units by the end of 2013 in comparison to the City's RHNA goals:
 
UNIT INCOME LEVELS        RHNA ALLOCATION      HOUSING UNITS
Very Low-Income      368      195
Low-Income      228      759
Moderate-Income      277        19
Above Moderate-Income      757        83
TOTALS      1,630      1,056
 
In 2013, 8 market rate (or above moderate-income) residential units were produced in the City.  Cumulatively since 2007, 1,056 units were produced.  This represents 65% of the City's RHNA goal of 1,630.
 
With regard to income levels, the City's strongest performance continues to be in the production of "very low" income and "low" income housing units, respectively, meeting 47% (195 of 368 units) and over 332% (759 of 228 units) of its target goals to date.
 
Production of units in the moderate- and above moderate-income categories was less robust with only 11% of the City's RHNA goal of 1,034 units being produced to date.  .  This can mainly be attributed to the great recession which significantly impacted housing production.
 
The State elimination of the City's Redevelopment Agency will have severe impacts on the City's ability to achieve future Housing Element goals and objectives as no funding source has been identified to replace Redevelopment Housing Set-Aside funds.  This represents a loss to the City of approximately $2.5 million annually.  To acquire, rehabilitate, and/or construct affordable rental housing developments, the City now primarily relies on federal HOME Program funds, which have been reduced to $155,000 in 2014, a 55% reduction since 2010. The City's Inclusionary Zoning Ordinance supports the development of affordable housing by requiring 15% of all new homes be designated as below market rate housing.
 
Some of the City's key goals and accomplishments in calendar year 2013 include:
 
GOAL 56: AFFORDABLE HOUSING CONSERVATION
·      14 Minor Home Repair Grants were awarded in 2013; and,
·      6 Mobile Home Repair grants were awarded in 2012.
 
GOAL 57:  GREEN NEIGHBORHOODS
 
·      City continues to participate in the implementation of Energy Upgrade California and promotion of Energy Analyzer;
·      City continues to offer Green Point Rater services at no cost to San Leandro homeowners on remodel/addition projects.
 
GOAL 58:  SPECIAL NEEDS POPULATION
·      Building Futures with Women and Children (BFWC) provided emergency shelter and support services for 246 persons in 2013;
·      Davis Street Family Resource Center (DSFRC) provided essential social services for 9,146 clients in 2013; and
·      Community Development Block Grant (CDBG) grantees provided public services to 3,031 persons with disabilities/special needs and 4,307 extremely low-income households in 2013.
 
GOAL 60:  FAIR HOUSING
·      ECHO Housing provided information, counseling, and/or investigation into 22 fair housing inquiries or allegations of housing discrimination in 2013. ECHO Housing also provided counseling on 7 of these cases and resolved 3 of them;
·      ECHO Housing conducted 13 fair housing sessions to 175 landlords, property managers, tenants and potential homebuyers, realtors, and interested persons in 2013; and,
·      In its FY 2012-2013 Fair Housing Audit, ECHO Housing tested 71 rental housing properties in Alameda, Concord, Cupertino, Hayward, Livermore, San Leandro (12 properties), Santa Clara County, Union City, and Walnut Creek for discrimination based on national origin and found no differential treatment in 61 (86%) of the cases.
 
Future key actions under the Housing Element Update for the City to assess and implement include:
 
·      Consider adjustments to long-term affordability requirements to preserve affordable rental stock;
·      Develop strategies to preserve affordable housing units "at risk" of expiring;
·      Consider amending the Inclusionary Zoning Ordinance to ensure greater effectiveness and efficiency; and,
·      Explore TOD planning opportunities at Bayfair Mall.
 
Previous Actions
The City Council adopted the current Housing Element Update in April 2010 and State HCD certified the Housing Element Update in 2011.
 
ATTACHMENTS
None.
 
PREPARED BY:  Steve Hernandez, Housing Specialist II, Community Development Department