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Home My WebLink AboutSR - Regional Housing Needs Assmnt Allocation CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: INFORMATIONAL REPORT ON REGIONAL HOUSING NEEDS ASSESSMENT ALLOCATION (RHNA) UPDATE SUBMITTED BY: JANET M. MOORE, HOUSING AUTHORITY ADMINISTRATOR DATE: APRIL 12, 2007 CONTENTS: RHNA TIMELINE Recommendation: By Minute Motion, receive and file. Back�round: The Regional Housing Needs Assessment Allocation (RHNA) is a state mandated process for establishing fair-share allocation of needed housing, including affordable housing, among local jurisdictions in the state. State Housing Element law (Article 10.6 of the Government Code} requires the California State Department of Housing and Community Development (HCD) to prepare regional housing needs determinations. Consequently, multi-jurisdictional agencies or Councils of Governments (COGs) are given the responsibility of distributing the state's housing needs in an equitable manner that attempts to avoid the disproportionate distribution of Very- Low and Low-income households. The City of Palm Desert falls under the jurisdiction of the Southern California Association of Governments (SCAG), the regional Council of Government (COG) for jurisdictions in a six county area. SCAG then works with 14 sub-regional associations including the Coachella Valley Association of Governments (CVAG), that covers ten cities and some unincorporated County areas. 1999 Assessment: The last assessment covered the period of January 1998 through June 2005. Palm Desert's allocation was low due to the expected growth of the area as projected by the City's Planning Department. The allocation for Palm Desert was as follows: G:\rda\Mana Hunt\WPDATAWMOORE�stfrpts\041207 info Item 2006 RHNADOC Staff Report Informational Report on Regional Housing Needs Assessment Allocation (RHNA) Update April 12, 2007 Page 2 City of Pa/m Desert 1999 RHNA /ncome Group Construction Need Very Low 77 Low 67 Moderate 85 Above-Moderate 215 TOTAL 444 Source: 1999 SCAG RHNA The Agency's efforts to produce affordable housing over the last RHNA cycle of 1998-2005 will result in the Agency successfully exceeding the 1999 RHNA allocation requirement of 229 restricted income units. Projects included in the production are Hovley Gardens, Palm Village, as well as two projects currently under construction, which includes Falcon Crest and La Rocca Villas, consisting of 93 single-family for-sale homes and 27 senior rental apartments respectively. Those units built after 2005 that exceed the 1998 requirement may be counted toward the next cycle. The new RHNA cycle was expected in 2005 but was delayed and is now due June 30, 2007. Through a cooperative process, SCAG and CVAG produced a nine-year (2006 - 2014) RHNA allocation for CVAG's jurisdictions. Planning Directors from the valley cities participated in the planning process. 2007 Assessment: The RHNA essentially consists of two components: New Construction Need and Existing Need. New Construction Need(also known as "Future Housinq Need'7 "New Construction Need" allocated by SCAG and CVAG for the City of Palm Desert considers the forecasted household growth rates of the entire region, the vacancy need, the replacement need, and a "fair share allocation" which is used to assign future construction need to various income categories. The purpose of the income category goals is to ensure that each jurisdiction within a COG attains their share of the state housing goal without any relative disproportionate distribution of household income groups. The household income groups are defined according to the HUD Area Median Income (AMI): Very Low (less than 50% of AMI), Low (50-80% of AMI), Moderate (80-120% of AMI) and Above Moderate (greater than 120°l0 of AMI). To determine Palm Desert's allocation, actual construction during the previous RHNA cycle, transportation projections, population and household growth projections, vacancies, demolition trends and the increase in jobs expected for Palm Desert, were all reviewed. The draft SCAG G:\rOa�Mana HunflWPDATA\JMOORE\stlrpts\041207 info Item 2006 RHNA.DOC Staff Report Informational Report on Regional Housing Needs Assessment Allocation (RHNA) Update April 12, 2007 Page 3 RHNA of 2007 indicates that the City should plan for an additional 4,546 new housing units through 2014 amongst all income categories. Allocation of the 2007 RHNA for Palm Desert and other jurisdictions within CVAG's Sub-Region are as follows: CVAG SUB-REGION CONSTRUCTION NEED ALLOCATION 2007 RHNA Income Grou Jurisdictions Indian � Pa�m Palm Rancho BI he Cathedral Coachella DHS Wells Indio Qufnta Desert S rin s Mlra e Unlncor rated Ve -Low 175 775 1,277 2,142 60 947 1,056 1,095 518 774 1,144 Low 127 537 885 1,556 42 661 718 752 363 534 798 Moderate 143 603 1,050 1,855 47 745 789 84� 417 598 927 Above-Moderate' 326 1,385 2,471 4,284 93 1,754 1,726 1,8rJ9 943 1,27d 2,129 OTAL 771 3,306 5,683 9,837 242 4,107 4,289 4,546 2,241 3,180 4,998 'The above-moderate need is generally accomplished by developers and owner-builders. Source: 2007 SCAG RHNA Additionally, it has been recommended by SCAG that each community should close the gap between their current income household distribution and the County distribution percentages, by specifically adjusting their respective levels in each of its four income categories. To do this there is an additional affordable housing requirement of 10% of the City's allocation to move the distribution towards the County average. SCAG finds that this "fair share adjustmenY' would address the statutory planning requirement to achieve equiry by moving closer to the County income distribution over the 2006-2014 planning period and avoid the further concentration of lower income households in "impacted" communities. Existinq Need "Existing Need" is defined by estimating the number of households with one or more federally defined "housing problems". Housing problems include overcrowding (more than 1.01 persons per room), cost burden or over-payment (when shelter cost is in excess of 30% of gross household income), and substandard housing (lack of plumbing and kitchen facilities for exclusive use). Existing Need has been derived from household income distribution and share of households with "housing problems" based on the latest decennial Census for household growth through 2000. SCAG declared that based on communication with the State Department of Housing and Community Development (HCD) that HCD has indicated that "...the State expects that the Existing Need allocation is to be used by jurisdictions to demonstrate logical and consistent programming, goal setting, and allocation of resources . . . Jurisdictions are not expected to 'solve' Existing Need, nor are they expected to provide new units as a response to Existing Need." G:�rda�Maria Hunt\WPDATAUMOOREIsttrpts\Q41207 iNo Item 2006 RHNADOC Staff Report Informational Report on Regional Housing Needs Assessment Allocation (RHNA) Update April 12, 2007 Page 4 SCAG 2007 RHNA Preliminary Existing Need Allocation Households with Any Housing Problem City of Palm Desert enure 30%of AMI 30-50%of AMl 50-80%of AMI 80/95%of AMI >95%of AMI TOTAL Renter 715 695 925 165 191' 2691 Owner 500 600 810 415 611' 2936 1215 1295 1735 580 802* 5627 'Estimated based on hlstorlc in/ormatlon as thls category inc/udes ALL housing units!n the C/ty even those Above-Moderate. Source: ?007 SCAG RHNA The Housing Authority addresses overcrowding for Agency owned units by following an occupancy standard established in October of 2003. It is suggested that Developer restricted units follow the same standard. As a means to alleviate cost burden, housing cost for Agency owned rental units is calculated at 25% of the household's income set at 5% incremental values to AMI. It is difficult to determine the effect to owner-occupied units that are still over burdened since the decrease in mortgage interest rates gave rise to a significant number of Palm Desert household's refinancing. There is no indication this was reflected in the Existing Need allocation noted for Palm Desert. Substandard housing has been addressed primarily through the Home Improvement Program or in the case of owner-occupied households over 120% AMI, through remodels and renovations. During the last 10 years, 61 home improvement loans and/or grants have been provided to make more suitable living conditions in existing homes within the City boundaries. Planninq and Goals: The City and Agency will continue to be proactive in ensuring that affordable housing is developed in the City to address the proposed Regional Housing Needs Allocation. What follows is a summary of the projects and goals that we expect to undertake during the next RHNA cycle: Anticipated Goals ♦ The City and Agency will continue to work with non-profits and private developers to create several hundred affordable housing units over the 2007 RHNA cycle. G:UdaVvlaria HunflWPDATAVM00RE�stlrpts�A41207 info Item 2006 RHNADOC Staff Report Informational Report on Regional Housing Needs Assessment Atlocation (RHNA) Update Apri) 12, 2007 Page 5 ♦ The City and Agency will continue to purchase restricted covenants and provide loans to organizations, developers, or builders who create affordable housing opportunities within the boundaries. d The City and Agency will work with developers to comply with the General Plan to provide affordable units within a market development when zoning concessions are made. ♦ The City and Agency will look for opportunities to secure land for the construction of new affordable housing opportunities. ♦ The City and Agency will identify parcels in its current inventory in order to plan affordable developments. Projects currently in process that include affordable units: Number of Affordable Units Bedroom Breakdown Above Very- Mod- Mod- 1- 2- 3- For- For- PROJECT NAME REQUIRED UNITS Low Low erate erate bedroom bedroom bedroom Sale Rent SUMMIT-MONTEREY Restricted Sales Prices for 14 Unfts 35 Units PROPERTIES Moderate to Above-Moderate at at x "Fallln Waters" 'ncome households U to 200% 49 $305,990 $329,990 n/a INATRA AND COOK Provide 20%of 260 apt project at PROJECT Moderate income&additional x "Vlne ards" 0°l0 o tion to urchase covenant 52 13 39 0%of the 103 will be reserved EMERALD BROOK �d rented to Moderate income X "WNRA artments" ouseholds 21 12 9 0%of the 320 unit development x ARES REGIS GROUP ill be rented or sold to Moderate "Enclave" income households 64 19 39 6 OOK/HOVLEY ST "Cantera Apartments" 1 units available to restr'�cted x PHASE ll 'ncome households 31 12 17 2 Projects in the Planning process that, if approved, may include affordable units: ♦ 750-Unit rental complex (Palm Hills) with a goal of 20% affordable units ♦ 75-acre development with potential multi-family all-affordable 200+ unit complex ♦ 14 unit all affordable self-help for-sale project Multi-Deqartment Impacts: The RHNA also plays a critical role in each jurisdiction's Housing Element. Produced by the Planning Department, Housing Elements are required to be updated within time periods identified by HCD, generally called "planning periods." Housing Elements include goals and objectives necessary to meet the jurisdictions regional housing need during each planning G:\rda�Marie Hunt\WPOATAUMOORElstlrpts�041207 inio Item 2006 RHNA.DOC Staff Report Informational Report on Regional Housing Needs Assessment Allocation (RHNA) Update April 12, 2007 Page 6 period. Cities are required to accommodate these needs by providing sufficient sites, with adequate zoning and infrastructure, to make possible the development of these units, including providing sites with sufficient density to make possible the development of housing for all income levels. Setting goals to accomplish the City's RHNA allocation is necessary in order for HCD to consider compliance of a jurisdiction's Housing Element. Jurisdictions in compliance have the opportunity to solicit state funding for housing resources to facilitate and assist the development of housing affordable to the workforce. This Housing Element represents a policy statement indicating that Palm Desert will continue to strive toward maintaining and enhancing its housing quality and its desirability as a place to work and live. The Housing Element seeks to build upon other General Plan requirements and is consistent with the goals and policies set forth therein. Submitted by: Department Head: Ja et . Moore ve rig H ' g Authority Administrator Director evelopmenUHousing Approval: � Jus ' cCarthy, ACM Redev lopment Carlos L. ega, Executive Director �_� � �� — � �ITY COUNCIL ACTI4N: BY RDA � "�i APPR�VED � DENIED ON � _ ��, RECEIVED OTHE� =--- ----- MEET I1� DI�TE � VERIFIED BY_��.�'L �� AYES: '` r rroEs: � Y p�,�on��e w�1,chy cr 's o�loe ABSENT: ABSTAIN: VERIFIED BY: ' �riginal on File wit ity Clerk's Offi�E G:\rda\Maria Hunt\WPDATA\JMOORE\stfrpts\041207 info Item 2006 RHNA.DOC