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HomeMy WebLinkAboutReso 2002-179 RESOLUTION NO. 2002-179 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AMENDMENTS TO THE CITY OF CHULA VISTA HOUSING ELEMENT OF THE GENERAL PLAN FOR THE 1999-2004 PLANNING PERIOD WHERF_AS, the State of California requires that all cities and counties prepare a housing element of their General Plan every five years (or as prescribed by State law), and submit it to the State Depa,hnent of Housing and Community Development for determination of substantial compliance with the requirements of State Housing Element law; and WHEREAS, the San Diego Association of Governments (SANDAG) sponsored State Legislation (AB 1715) that was enacted as Government Code Section 65585.1 in 1995, which creates the opportunity for local governments within the San Diego Region to self-certify their Housing Element of their General Plan through a pilot program; and WHEREAS on December 19, 2000, the City of Chula Vista self-certified its 1999-2004 Housing Element of the General Plan under the provisions of Government Code Section 65585.1; and WHEREAS, amendments to the Housing Element are proposed to provide greater specificity and clarity regarding the discussions of: 1) Land available to meet the regional housing needs (historical rate of density of development and reuse of land and availability of infrastructure); 2) Development and processing standards for multifamily development; 3) Program for development of affordable housing opportunities outside of the Balanced Communities policy; 4) Evaluation of Article XXXIV; 5) Public participation process; and, 6) Internal consistency of all elements of the General Plan to ensure compliance with the provisions of Article 10.6 of Division 1, Title 7 of the Government Code; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed amendments for compliance with the California Environmental Quality Act and has determined that the proposed project was adequately covered in previously adopted Negative Declaration IS-00-08; and WHEREAS, the Planning Commission and the Housing Advisory Commission, upon hearing and considering all testimony, if any, of all persons desiring to be heard have recommended to the City Council that the amendments be adopted because the Commissions believe that the Housing Element, with the proposed amendments, is in compliance with the provisions of Article 10.6 of Division 1, Title 7 of the Government Code; and WHEREAS, the City Clerk set the time and place for a hearing on said Housing Element and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City at least 10 days prior to the hearing; and WHEREAS, the hearing was held at the time and place as advertised, namely May 28, 2002, at 6:00 p.m. in the Council Chambers, 276 Fourth Avenue before the City Council and said hearing was thereafter closed; and WHEREAS, at a public hearing held on May 28, 2002, the City Council considered all reports, evidence, and testimony presented finds based on substantial evidence that the attached Resolution 2002-179 Page 2 document substantially complies with the provisions of Article 10.6 of Division 1, Title 7 of the Government Code; and NOW, THEREFORE, BE IT RESOLVED, the City Council adopts the amendments as incorporated in the attached document, entitled "City of Chula Vista Housing Element 1999- 2004" as an element of the General Plan to act as a guide to the City in addressing the housing needs of all economic segments of the City. BE IT FURTHER RESOLVED that from the facts presented to the City Council, the City will submit the Housing Element to the State Department of Housing and Community Development to review for compliance with Article 10.6 of Division 1, Title 7 of the Government Code. Presented by Approved as to form by Chris Salomone ~pfM. Kaheny ) Community Development Director ~Gi~y Attorney ~ Resolution 2002-179 Page 3 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 28tl~ day of May, 2002, by the following vote: AYES: Councilmembers: Davis, Padilla, Rindone, Salas and Horton NAYS: Councilmembers: None ABSENT: Councilmembers: None Shirley Hort~'n, Mayor ATTEST: Donna Norris, Assistant City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Donna Norris, Assistant City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2002-179 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 28th day of May, 2002. Executed this 28th day of May, 2002. Donna Norris, Assistant City Clerk CrlY OF CHULA VISTA HOUSING ELEMENT OF THE GENERAL PLAN 1999-2004 Revised: April 2002 (Strikeout/Underline) CITY OF CHULA VISTA GENERAL PLAN HOUSING ELEMENT 1999-2004 Adopted on December 19, 2000 City Council Resolution No. 2000-480 HOUSING ELEMENT STAFF Chris TABLE OF CONTENTS TABLE OF CONTENTS .............................................................................................................. I -' LIST OF FIGURES AND TABLES ......................................................................................... III EXECUTIVE SUMMARY ................................................... B ACKGROLrND INFORMATION 1 NEEDS ASSESSMENT INTRODUCTION ......................................................................................................................... 5 CrrY PROFILE ............................................................................................................................... 5 HOUSING ELE~at~rr .................................................... 5 ORGANIZATION OF THE HOUSING ELEMENT ................................................................................. 5 RELATIONSHIP TO OTHER GENERAL PLAN ELEIv[ENTS ................................................................. 6 PUBLIC PARTICIPATION ............................................................ . .......... 7 SOURCES OF INFORMATION 8 I. NEEDS ASSESSMENT ......................................................................................................... 11 POPULATION CHARAcTERiSTiCS ................................................................................................ 11 HOUSEHOLD C~u,n¢~USTICS ................................................................................................. 14 S?EC~AL NEEDS GROUPS ............................................................................................................ 16 LAND USE CHARACTERISTICS .................................................................................................... 23 EMPLOYMENT CHARACTERISTICS .............................................................................................. 23 HOUSING STOCK CHARACTERISTICS .......................................................................................... 26 AT-RIsK UNITS .......................................................................................................................... 30 II. CONSTRAINTS TO HOUSING PROVISION ................................................................. 33 GOVF2,NMENTAL CONSXRA~rS ................................................................................................. 33 NoN-GOVERNMENTAL CONSTRAn~S ........................................................................................ 45 III. EVALUATION .................................................................................................................... 47 EVALUATION OF PREVIOUS HOUSING ELEMENT ......... . 47 OBJECTIVE 1 ..................... 48 OBJECTIVE 2 ...................................................................... 49 OBJECT, rE 3 ....................................... BJECTY~E 4 '" BfECTIVE 5 ' OBJECTIV~ 6 .............................................................................................................................. 53 B~c'nvE 7 55 OBJECTIVE 8 .................................................... , ................................................. OBJECTr~ 9 .... i .............................................................................................. 56 O~mc'n~ 10 . ' ........................................ 57 oF cmJ[A WSTA PAG I OF rv HOUSING £LEMENT 1999-2004 OBJECTIVE 12 ............................................................................................................................. 59 EVALUATION OF PROGRESS TOWnP, DS 'MEETING COASTAL ZONE REQUIREMENT ..................... 60 EVALUATION OF PROGRESS TOWARDS SELF-CER'r~ICATION REQUIREIviENTS .......................... 63 IV. HOUSING OPPORTUNITIES ..., ..................................................................................... 65 AVAILABILFrY OF SUrrABLE SrrEs ............................................................................................ 65 REDEVELOPMENT HOUSING OBLIGATIONS ................................................................................. 75 V. GOALS AND POLICIES ..................................................................................................... 81 HOUSING GOALS, OBJECTIVES, POLICIES, AND PROGRAMS ...................................................... 83 PAGE II OF IV CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 LIST OF FIGURES AND TABLES FIGURE 1: CITY OF CHULA VISTA BOUNDARY 9 FIGURE 2: COASTAL ZONE .................................................................................................... 61 FIGURE 3: HOUSING UNITS PER JOB ............................................... 67 FIGURE 4: CITY OF CHULA VISTA ANNUAL CHANGE IN ~'~'~b'fi~b~ .... FIGURE 5: HOUSING PERMITS IN CITY OF CHULA VISTA CO~"~'~ ....... 68 DIEGO COUNTY 1980 THROUGH 2000 .......................... 69 FIGURE 6: MASTER PLANNED COMMUNITIES ................................................................. 71 FIGURE 7: REDEVELOPMENT PROJECT AREAS ............................. 78 TABLE 1:1999-2004 QUANTIEIllr) OBJECTIVES .............................. 3 TABLE 2: STATE HOUSING ELEMENT REQUIREMENTS CALIFORNIA, 1999 .............. 10 TABLE 3: POPULATION GROWTH CHULA VISTA AND SAN DIEGO REGION 1990- 1998.....: .................................................... 11 TABLE 4: PROJECTED POPULATION GR~iiiiiiiiiiiiiiiiiiiiiiiiii i iiiiiiiiii ........................ 12 TABLE 5: POPULATION BY AGE GROUP ................................................:::::::::::::::::::::::: 13 TAB1.1~ 6 :CHANGE IN POPULATION BY RACE 1990 - 1997 .................. ' 13 TABLE 7: HOUSEHOLD INCOME DISTRIBUTION ........................ 15 TABLE 8: MOBILITy AND SELF-CARE LIMITATION BY AGE ....... 18 TABLE 9: SHELTERS FOR THE HOMELESS SERVING SAN DIEGO - SOUTH BAY ..... 20 TABLE 10: CHULA VIST~k MAJOR EMPLOYERS ................................................................ 24 TABLE I1: PROJECTED EMPLOYMENT BY SECTOR CHULA VISTA 1995 - 2020 ........ 25 TABLE 12: PROJECTED HOUSING UNITS ..... 2' TABLE 13: TYPE OF HOUSING UNITS, 1998 ............................................................ o TABLE 14: PROJECTED HOUSING UNIT TYPE CHULA VISTA, 1998-2020 .................... 27 TABI.E 15: AGE OF HOUSING STOCK .................................................................................. 27 TABLE 16: VACANCY RATES CHULA VISTA 1996 TO 1999 ............................................ 29 TABLE 17: HOUSING COSTS - 1998 ....................................................................................... 30 TABLE 18: AVERAGE PRODUCTION COSTS OF HOUSING ............................................. 31 TABLE 19: ES_.TIMATED COST OF RENT SUBSIDIES CHULA VISTA, 1999 .................... 31 TABLE 20: ZONES AIJ.OWING RESIDENTIAL DEVELOPMENT BY RIGHT. ................ 35 TABLE 21: ZONES CONDITIONAI!,y ALLOWING RESIDENTIAL USES ....................... 35 TABLE 22: RESIDENTIAL DEVELOPMENT IMPACT FEES* AS LEVIED BY JURISDICTION, PER PROTOTYPE SAN DIEGO REGION, 1999 .................................. 39 TABLE 23: DISCRETIONARY REVIEWS FOR TYPCIAL RESIDENTIAL DEVELOPMENTS .................. 41 TTABLE24: COMPONENT COSTi'~'~'i]~'~'~"~'iiii i iii .......................... 46 ABLE 25: CHU-LA VISTA 1991-1999 FAIR SHARE AFFORDABLE HOUSING GO~' AND PERFORMANCE 47 TABLE 26: REGIONAL SHARE COMPARED TO ACTUAL UNIT CONSTRUCTION 1991- 1999 - TABLE 27: AFFORDABLE HOUSING POLICY .................................................... 49 TABLE 28 NEW RENTAL HOUSING OPPORTUNITIES ...................................... :: ...5:::: 50 CITY OF CHULA VISTA HOUSING EL£MENT 1999-2004 PAGE III OF IV TABLE 29: HOUSING REHABILITATION .. . ... 54 TABLE 30: REGIONAL SHARE - 1999 - 2004 CHULA VISTA ........................ 65 TABLE 31: HOUSING UNITS PER JOB .................................................................................... 66 -, TABLE 32: RESIDENTIAL CONSTRUCTION CAPACITY EASTERN CHULA VISTA MASTER PLANNED PROJECTS .......... . 70 TABLE 33: RESIDENTIAL CONSTRUCTION CAPAC1TY WESTERN CHULA VISTA VACANT AND UNDERUTILIZED LAND ....................................................................... 72 TABLE 34: REGIONAL SHARE AND UNIT POTENTIAL IN CHULA VISTA ................... 73 TABLE 35: LOW/MODERATE-HOUSING FUNDS AVAILABLE SEPTEMBER 1999 ....... 76 TABLE 36: ANNUAL HOUSING UNIT PRODUCTION REDEVELOPMENT SET-ASIDE FUNDS .......................................................................................... 77 TABLE 37: HOUSING OBJECTIVES BY GOALS, POLICIES, AND PROGi{~ SUMMARY 81 PAGE IV OF IV CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 EXECUTIVE SUMMARY The Housing Element for the City of Chula Vista is an element of the City's General Plan. It covers the period beginning July 1, 1999 to June 30, 2004. Background Information Chula Vista is the second largest municipality in San Diego County with a population of 166,945 residents. The City covers approximately 50 square miles along the San Diego Bay and surrounded by National City, the City of San Diego, and the unincorporated area. Two major north-south freeways, I-5 and 1-805 traverse Chula Vista. The area west of the 1-805, "western Chula Vista" is built-up and characterized by well-established neighborhoods with primarily infill and redevelopment residential construction activity. The developing "eastern area" is comprised of large vacant tracts constituent to several inaster planned communities in various stages of approval and implementation. Needs Assessment According to SANDAG's Preliminary 2020 Cities/County Forecast, Chula Vista is expected to gain 46,000 new residents and 13,801 new households. The characteristics of the City's population, housing, and employment that affect its housing goals, policies, and programs include: Population/Household Characteristics · Chula Vista residents have household income and age characteristics that nearly match the regional median. The population has more diversity in racedethnicity than the region, in that 44 percent of the population is white (non-Hispanic) and 42 percent is Hispanic (all races), this compares to 61 percent and 23 percent respectively. · Household size is slightly larger than the region, at 3.0 persons per household for Chula Vista, compared to 2.83 persons per household for the region. Land Use Characteristics · A large supply of vacant developable land is planned for communities with a wide variety of densities and land use types. · The well-established neighborhoods and master planned neighborhoods create different opportunities and require a different set of policies and programs to address housing needs. ' 'CITY OF CHULA VISTA PAGE 1 OF 118 HOUSING ELEMENT 1999-2004 Employment Characteristics · The City's diverse employment base will grow by more than 47 percent between 1995 and 2005, with the majority of growth in the retail, service, and government sectors. Housing Stock Characteristics · A high rate of new home construction is anticipated due to the many approved master planned communities in the City. · Reinvestment in the well-established neighborhoods of Western Chula Vista continues to be needed. · Approximately 13,000 units will be 50 years or older by 2004. · A home ownership rate of 53 percent is nearly the same as the region's rate of 54 percent. · The very low rental vacancy rate of 1.1 percent indicates likely increased housing costs and greater likelihood of over-crowding. · The median housing cost (resale) of $177,000 is $18,500 less than the region's median cost of $195,500. · Average rents are 10 percent to 30 percent lower than the region wide average rents. Assisted Housing Units at Risk of Converting to Market Rate Units · Two projects have at-risk units that were created through the density bonus program. These 41 units could be converted to market rate units in 2000 and 2008. Goals and Policies The primary goal of the City is to ensure that decent, safe housing is available at an affordable cost. The priority is the provision of housing for families, particularly large families, of all income levels. Goal 1. Conserve Existing Affordable Housing Opportunities Goal 2. Maintain and Enhance the Quality of Residential Neighborhoods in Chula Vista Goal 3. Ensure That an Adequate and Diverse Housing Supply Is Available to Meet the City's Existing and Future Needs. Goal4. Increase Home Ownership Opportunities for Low- and Moderate-income Households PAGE 2 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 Goal 5. Enable Homeless Individuals and Families to Find Permanent Housing Goal 6. Encourage Energy and Waste Conservation as an Integral Part of Homes Goal 7. Promote Equal Opportunity for All Residents to Reside in Housing of Their Choice Goal 8. Reduction And/or Removal to the Greatest Extent Possible of Identified Constraints to the Development, Maintenance, and Improvement of Housing Each of these goals has a set of policies and programs, which include objectives for the 1999- 2004 Housing Element cycle, as summarized in the table below and as more specifically set forth in Section V. TABLE 1:1999-2004 QUANTIFIED OBJECTIVES Description [ Households Assisted Preserve At-Risk 41 SF/MH Rehabilitation 250 Caring Neighbors 500 Rental Rehabilitation 120 Christmas in October 25 Affordable Housin~ Program - Low Income 460 Affordable Housing Program - Moderate Income 470 State Density Bonus I0 ' Mixed Use Developments 100 Shared Housing 350 First Time Home Buyer - Afl Hsg Program 130 Mortgage Credit Certificate 25 Transitional Housing 10 Fair Housing Assistance 150 Total 2,641 The City has two sets of numerical housing goals established by SANDAG, which are also addressed in the Housing Element; the City's share of the region's future housing needs (regional share goals) and the affordable housing goal for self-certification. The total regional share goal is 10,401 new housing units and the estimated total affordable housing opportunities for self- certification in 2004 is 1,029. Both of these totals are divided into income categories which are explained in this Housing Element. CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 3 OF 118 The City of Chula Vista is eligible to self-certify this Housing Element update in 1999 because it created 1,796 affordable housing opportunities between 1991-1999. This means that when the City Council adopts the final Housing Element, including a resolution that makes the "self- certification findings," the Housing Element update process is completed. The Housing Element is not sent to the State Housing and Community Development Department for certification (approval). PAGE 4 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 INTRODUCTION The Housing Element is an important planning tool for the City of Chula Vista. It identifies the housing needs of the City and recommends ways to meet these needs while balancing other community objectives and resources. Ci,ty Profile Chula Vista is the second largest municipality in San Diego County with a population of 166,945 residents. The City covers approximately 50 square miles along the San Diego Bay and surrounded by National City, the City of San Diego, and the unincorporated area. Two major north-south freeways, I~5 and 1-805 traverse Chula Vista. The area west of the 1-805, "western Chula Vista" is built-up and characterized by well-established neighborhoods with primarily infill and redevelopment residential construction activity. The developing "eastern area" is comprised of large vacant tracts constituent to several master planned communities in various stages of approval and implementation. Element The Housing Element is an important planning tool for the City of Chula Vista. It identifies the housing needs of the City and recommends ways to meet these needs while balancing other community objectives and resources. As the needs and programs are discussed in this Housing Element, a distinction may be made between Westem and Eastern Chula Vista. Figure 1 shows the areas covered by that reference. State Policy and Authori tlon The California State Legislature has identified the attainment of a decent home and suitable living environment for every Californian as the State's main housing goal. Recognizing the important part that local planning programs play in pursuit of this goal, the Legislature has mandated that all cities and counties prepare a housing element as part of their comprehensive general plans. State law requires housing elements to be updated at least every five years to reflect a community's changing housing needs. Chula Vista's Housing Element was last updated in 1991. No update of the Element was required until 1999 due to legislative extensions. This document is the 1999-2004 update required for jurisdictions within the San Diego region. .Organization of the Housing Element Section 65302(c) of the Government Code sets forth the specific components to be contained in a community's housing element. Table I summarizes these State requirements and identifies the sections in the Chula Vista Housing Element where these requirements are addressed. ~ITY OF ~dHIJLA VISTA PAGE 5 OF 118 HOUSING ELEMENT 1999-2004 Relationship to Other General Plan Elements California law requires that General Plans contain an integrated and internally consistent set of goals and policies. The City of Chula Vista's General Plan consists of ten elements: 1) Land Use; 2) Circulation; 3) Open Space and Conservation; 4) Noise; 5) Safety; 6) Public Facilities; 7) Housing; 8) Growth Management; 9) Parks and Recreation; and 10) Childcare, and contains goals and policies for urban development, community design, housing, natural hazards, economic development, and public services and facilities. The Housin~ Element is most affected by development policies of the Land Use Element, which establishes the location, type, intensity, and distribution of land uses throughout the City. The Housing Element uses the residential goals and obiectives of the City's adopted Land Use Element as a policy framework for developing more specific ~oals and policies in the Housing Element. The main themes expressed in the goals and objectives of the Land Use Element for residential development include the following: 1. Choice - The City should ensure a diversity of housin,o types and price levels. 2. Planned, Quality Development - The city should ensure that new developments are of high quality desi~ and planning, with coordinated mix of urban uses. open spaces. and amenities. 3. Medium and High Density Compatibility with Surroundings and Services - The City should provide multi-family housine in appropriate areas convenient to public services, facilities, and circulation, and limit higher densities where found to be incompatible with the conservation of single family neighborhoods. 4. Preservation - The City should preserve and reinforce existing; neighborhoods. The Housing Element is also affected by the policies set forth in the Noise Element and Safety Element. These Elements contain policies which may limit residential development in certain areas for reasons of noise impacts, geology, and public safety. The Circulation Element also relates to the Housing Element in that maior areas for housine must be served with adequate access routes and transportation systems. The Growth Management Element can also have an affect on the development of housing, althou~,h it does not impose any numerical cap or limit on new housing construction. The primary purpose and intent of this Element is to maintain the community's quality-of-life as new housin~ and other development occur by providing necessary public services and facilities concurrent with development. The City's growth management pro,am is intended to be supportive of the provision of affordable housing by guaranteeing that infrastructure and public services are provided to new residential developments when and where needed, and are paid for by new development. Should that infrastructure not be provided, the City has the fight to slow or stop development, which could have a temporary effect on the timing of providing additional affordable housing units. PAGE 6 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 The content of this Housing Element is consistent with the goals and policies of all elements of the City's General Plan. As the City moves forward with an update of its General Plan in FY 2001-02 and 2002-03. the City will incorporate the general goals and policies established in Housing Element into the framework of those affected Elements of the General Plan. Public Participation The general public was solicited for comments on the updated Housing Element in a variety of ways. The City's efforts to involve the public in the development and review of the Element included meetings through the Housing Element Advisory Committee (HEAC} of S3d'q-DAG. local public workshops, and public hearings before the Housing Advisory Commission. Plannin-. Commission and City Council. The HEAC meetings held at SA1VDAG offices were primarily focused on establishing Housin,2. Element self-certification criteria and which housing pro~-arns and products would be used towards meeting self-certification goals.. The Committee was comprised of representatives from local iurisdictions, local advocacy groups, and housing providers. The diversity of th, Committee assisted in developing a self-certification program that addressed the needs of ti',,. various public interest groups and providers. Therefore. the self-certification pro,am and criteria adopted by SANDAG is a direct product of a far reaching public participation process. Early in the Housing Element update process. July 1999, one Housing Element information session was held with the City Council. At that time, they discussed the draft Regional Housing Needs and provided comments on the proposed preliminary goals and policy revisions for the 1999-2004 Housing Element update. Also, as part of housing program funding discussions, the Housing Advisory Commission discussed and gave input on housing programs and needs. The draft Housing Element was subject to four public-noticed workshops to obtain the view of citizens, developers, service providers, and other interested persons on the City's housing needs, policies, and pro,ams to be implemented to address these needs. --: .... ~.-.,~ m .... :~~ "'~---;~;~- and t-~;"' o~..-~;i .... :.4 .... :~ Of U^..~;-~ ~2, ..... .~v..~n' The public workshops were held on October 20th, October 27th, November Ist. and November 3, 1999 and were noticed both in the local newspaper and through direct mailings to potentially interested parties. The Planning Commission and Housing Advisory Comnfission hosted one workshop each, and there were two additional workshops scheduled for public convenience. The mailing list included housing advocates, special needs providers, local builders, local school districts. mobilehome communities, and affordable housing developments. Many of these gTOups received a copy of the draft Housing Element. After completing the series of public workshops, the draft Housing Element was made available for review and comment for a 30 day period. The document was available at various locations, includim, the Main Chula Vista Library. South Chula Vista Library, Eastlake High School .Library, City Clerk's Office, the Planning and Building Department, and the Community Develor~ment Department. A copy of the notice was published in the local newspaper and through direct mailings to potentially interested parties. t21'lly OF C. HULA 'vISTA PAGE 7 OF 118 HOUSING ELEMENT 1999-2004 Additionally, as a result of comments received fi.om residential developers during the public review and comment period, City staff held a series of meetings fi.om December 1999 to July 2000 with residential developers of the City's master planned communities and affordable housing developers. Discussions centered on constraints to residential development, the quantified objectives for the five year period, greater specificity and accountability of the proposed goals. All comments received regarding the draft Housing Element were considered and where appropriate, the draft Element was revised. The City's desire to address these comments and to work cooperatively with developers, advocacy ~'oups and other interested persons served to further delay the schedule of adoption of the Housing Element. In November 2000, a public-noticed heating was held before the Housing Advisory Commission and Planning Commission to consider the adoption of the Housing Element and compliance with Government Code Section 655886.1 for the 1999~2004 Housing Element cycle. On December 19, 2000~ the City Council held a public noticed heating to consider the recommendation of both the Housing Advisory Commission and Planning Commission to adopt the Element. Sources of Information The Regional Housing Needs Statement produced by the San Diego Association of Governments (SANDAG) in 1999 provided the majority of the background material for the preparation of the Housing Element. This do6ument includes data fi.om the 1990 Census and SANDAG's 1998 Population and Housing Estimates, among other sources. PAGE 8 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 _F, IGURE 1: CITY OF CHULA VISTA BOUNDARY CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 9 OF 115 TABLE 21-: STATE HOUSING ELEMENT REQUIREMENTS CALIFORNIA, 1999 Required Housing Element Component I Page 1. Housing Needs Assessment a. Analysis of population trends 11 b. Analysis of employment trends 23 c. Projection and quantification of Chula Vista's existing and projected 65 housing needs for all income groups d. Analysis and documentation of Chula Vista's housing characteristics 26 e. An inventory of land suitable for residential development including vacant sites and those having redevelopment potential and an analysis of the 70 relationship of zoning, public facilities, and services to these sites f. Analysis of existing and potential governmental constraints upon the 33 maintenance, improvement, or development of housing for all income levels g. Analysis of existing and potential non-governmental constraints upon the 45 maintenance, improvement, or development of housing for all income levels h. Analysis of special housing needs including those of handicapped, elderly, 16 large families, single-parent households, and farm workers i. Analysis of the nee. ds of homeless individuals and families in Chula Vista 19 j. Analysis of opportunities for energy conservation with respect to residential development 74 2. Goals and Policies a. Identification of Chula Vista's goals and policies relative to the 81 maintenance, improvement, and development of housing 3. Implementation Program a. Identify adequate sites which will be made available through appropriate action with required public services and facilities for a variety of housing 70 types for all income levels b. Programs to assist in the development of adequate housing to meet the needs of low- and moderate-income households and other special needs 83 groups c. Identify, and, when appropriate and possible, remove governmental constraints to the maintenance, improvement, and development of housing 33 in Chula Vista d. Conserve and improve the condition of the existing and affordable housing 83 stock in Chula Vista PAGE 10 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 I. NEEDS ASSESSMENT This section of the Housing Element discusses housing needs in Chula Vista. The major components of this need are the City's population, household, special needs groups, land use, employment, and housing stock characteristics. This needs assessment serves as the basis for identifying the appropriate goals, policies and programs for the City to implement during the 1999-2004 housing element cycle. Ponulation Characteristic~ Population Growth Since 1990 In 1990, the population of the San Diego region was 2,498,016. It is estimated that by 1998 the region's population had grown to 2,795,780, an increase of 11.9 percent. During this same time Chula Vista's population increased by approximately 19.9 percent. Refer to Table 1, Population Growth Chu}a vista and San Diego Region 1990-1998. TABLE 3: POPULATION GROWTH CHULA VISTA AND SAN DIEGO REGION 1990- 1998 Year (Jan 1) Chula Vista San Diego Region ~ as % of the 1990 135,163 2,498,016 5.4% 1991 138,262 2,539,583 5.4% 1992 141,015 2,583,470 5.5% 1993 144,466 2,614,222 5.5% 1994 146,525 2,638,511 5.6% 1995 149,791 2,690,255 5.6% 1996 153,164 2,690,255 5.7% 1997 156,401 2,729,054 5.7% 1998 162,106 2,795,780 5.9% Total Increase 26,943 297,764 % Increase 19.9% 11.9% Source: State Department oflainance Revised Annual January 1, 1997 estimates. CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 11 OF 118 Projected Population As indicated in Table 4, Chula Vista's population is expected to increase by 82.28 percent between 1995 and 2020, an increase of approximately 124,362 people. Compared with the 44 percent growth for the region. For the period approximating the housing element period (1998 to 2005), Chula Vista's population will increase by 28 percent, an increase of 46,000. This compares to a regional increase of 15 percent. TABLE 4: PROJECTED POPULATION GROWTH Year I ChulaVista I San Diego Region 1995 151,093 2,669,200 1998 162,106 2,795,780 2005 208,107 3,223,474 2010 233,313 3,437,697 2020 275,455 3,853,297 Total Increase 124,362 1,184,097 % Increase 82.3% 44.4% Source: SANDAG Preliminary 2020 Cities/County Forecast, February 1999, State DOF March 1998 Age Characteristics Housing demand within the market is often determined by the preferences of certain age groups. Traditionally, both the young adult population (20-34 years of age) and the elderly population tend to favor apartments, low- to moderate-cost condominiums, and smaller single-family units. Persons between 35 and 65 years often provide the major market for moderate- to high-cost apartments and condominiums and larger single-family units because they tend to have higher incomes and larger sized households. Chula Vista's largest population gxoup consists of persons between the ages of 20 and 34 (22 percent of the population), compared to approximately 24 percent for the region.. The median age in Chula Vista is 32.7 years; County median is 28.8. Refer to Table 5, Population by Age Group. PAGE 12 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 TABLE 5: POPULATION BY AGE GROUP Age Chula Vista Region Population I Percent Population ] Percent -' ..Under 5 14,789 9% 234,317 8.4% 5-19 34,085 22% 588,971 21% 20-34 34,843 22% 658,568 23.6% 35-44 24,228 16% 460,224 16.5% 45-54 17,591 11% 328,180 12% 55-64 12,097 8% 204,891 7% 65 and older 18,515 12% 319,634 11.5% Total 156,148 100% 2,794,785 100% -~ Demographic Characteristics Estimates, March 1998 Race/Ethnicity Characteristics Ethnicity tends to correlate with other characteristics such as family size. Table 6 shows that in Chula Vista, the population is diverse, with no single race/ethnic group predominating. TABLE 6 :CHANGE IN POPULATION BY RACE 1990 - 1997 Population I 1990 I 1997 ] Percent Change White (non-Hispanic) 49.8% 44.0% -5.8% Black (non-Hispanic) 4.2% 4.6% 0.4% Hispanic (all races) 37.3% 42.0% 4.7% Asian/Other (non-Hispanic) 8.5% 9.5% 1.0% Total Population 135,163 162,047 20 % CITY OF CHULA VISTA PAGE 13 OF 118 HOUSING ELEMENT 1999-2004 Household Characteristics In 1998, an estimated 951,818 households (also known as occupied housing units) were in the region, an increase of seven pement since 1990. In Chula Vista, them were an estimated 53,968 households, 5.7 pement of the region's total. Projected Households Between 1998 and 2005, the number of households in the San Diego region is forecasted to grow by 136,884 households, a gain of approximately 14 pement. By 2005, the number of households in Chula Vista is expected to be 67,769 households, an increase of 13,801 new households or 25.6 percent. The City will account for approximately ten percent of the region's increase in the number of households between 1998 and 2005. Household Size Household size is a significant factor in housing demand. Often household size can be used to predict the unit size that a household will select. For example, small households (one to two persons per household) traditionally can find suitable housing in units with zero to two bedrooms while larger households (throe or mom persons per household) can usually find suitable housing in units with throe to four bedrooms. However, people's choices also reflect preference and economics. Thus, many small households prefer and obtain large units. Household size is also related to choice of locations. For example, the small household (single person/elderly) is usually not as concerned with the quality of the school system in an area. In 1998, the average number of persons per household in the San Diego region was 2.83 persons per household. Chula Vista has an average of 3.0 persons per household, representing a slight increase from the 2.8 household size in 1990. The preponderance of new single-family homes built in Chula Vista in recent years has contributed to the increase in the average number of persons per household. Single-family homes are typically larger, have more bedrooms, and therefore are able to house a larger number of people than a smaller unit. Household Income Income levels influence the range of housing prices within a community and the ability of the population to afford housing. As household income increases, the number of homeowners increases. As household income decreases, the number of households paying a disproportionate amount of their income for housing and the number of persons occupying unsound and overcrowded housing increased. The 1998 median household income of $42,516 in Chula Vista is very close to the region's median of $42,350. Table 7 shows the distribution of the household income. The income distribution in Chula Vista is very similar to that of the region as a whole. PAGE 14 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 TABLE 7: HOUSEHOLD INCOME DISTRIBUTION Income ~_~ Chula Vista '---~-San Diego Region- ~ ~ Percent Less than $10,000 5.8% $15,000 to $24,999 _.~_ 7,285 13.5% 1'~3.6% ~ 7,770 14.4% ~ 14.3% $35,000 to $49,999 __._~9,433 17.5% 18.8% ~ 11,876 22.0% ~ 20.6% $75,000 to $99,999 5,433 10.0% ~ ~4,968 ~ -- ~ 9.2% ~ 10.1% Total 53,968 100% 100% Source: SANDAG Population and H~ 1, 1998. Overcrowding According to SANDAG's review of overcrowding region wide, the combination of low income and high housing costs has t~orced many households to live in overcrowded conditions. The term .overcrowded ~s applied to units with 1.01 or more ers . and bathroom(s)~. Identifying the extent oe ........... P~ ~ ons,p, er room exclusive of the kitchen that the community does not have an adequ&t~''~'''suwue° provJems can serve as a warmng sign for large families, supply of affordable housing and/or housing units According to the 1990 Census, there are 5,193 overcrowded housing units in Chula Vista, representing about 10.4 percent of the 49,849 total housing units. Region wide 17.5 percent of all housing units are overcrowded indicating that there is comparatively less overcrowding in Chula Vista than region wide. Of those overcrowded units in Chula Vista 1,794 (35 percent) are owner-occupied and 3,399 (65 percent) are renter occupied. Region wide overcrowded households are 27.3 percent owner- occupied and 72.6 percent renter-occupied. IUnder state law a housing unit is not considered overcrowded if there is at least 120 square feet of liveable space for the first two people and an additional 50 square feet ;for each additional person. Liveable space includes all rooms except the bath, kitchen, and hallways. Note however that data are not available by this definition. C/TY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 15 OF 118 Overpayment Measuring the portion of a household's gross income that is used for housing can indicate the affordability of housing within a community. State and federal programs typically define housing cost burden as those lowerdncome households paying over 30 percent of household income for housing costs. Based upon the 1990 Census Da~a, 18,102 households or 38 percent of all households in Chula Vista pay more than 30 percent of their household income for housing as compared to 41 percent in the region. 6,991 of these households experience a severe housing cost burden, paying mom than 50 percent of their income towards housing costs. Of the 18,102 households experiencing a housing cost burden, 58 percent are ranter households and 42 percent are homeowners. Those extremely low-, very low- and low-income renter households are more greatly affected. Approximately 83 pement of extremely Iow-income, 87 percent of very low-income, and 56 percent of Iow-income renters are paying more than 30 percent of their income towards housing costs. Approximately 64 percent of extremely Iow- income, 49 percent of very low-income, and 39 percent of low-income homeowners are paying more than 30 percent of their income towards housing. Special Needs Groups Them are some population, groups that have been identified as having a need for special or alternative types of housing. These special need populations have difficulty finding appropriate housing to meet their needs due to economic, social, mental, or physical conditions. These groups are the elderly, persons with disabilities, large families, single-parent households, the homeless, farm workers, day laborers, and students. Many of these groups overlap. For example, many farm workers are homeless and many elderly people have a disability. The Elderly The limited incomes of many elderly persons often make it difficult for them to find affordable housing. In the San Diego region, the elderly spend a higher pementage of their income for food, housing, medical care, and personal care than non-elderly families. Many elderly persons need some form of housing assistance. In 1990, 6.3 percent of the San Diego region's residents aged 65 and over were living in poverty. The elderly population comprises about 12 percent of the estimated population in Chula Vista or 18,515 persons according to SANDAG's March 31, 1998 Demographic Characteristics estimates. Elderly is defined as 65 years or older. The housing needs of the elderly include supportive housing, such as intermediate care facilities, group homes, and other housing that may include a planned service component. Needed services related to the elderly households include personal care, health care, housekeeping, meals, personal emergency response, and transportation. PAGE 16 OF 118 CITY OF CHLrLA VISTA HOUSING ELEMENT 1999-2004 .According to the 1990 Census data for the City, approximately 6,199 elderly households are low- income and a majority, (58 percent) are homeowners. Of those elderly households renting their home, 40 percent are estimated to pay more than 50 percent of their income for housing. Elderly households constitute nearly 31 percent of all Chula Vista low-inenme households (20,290 households). Of the total low-income renter households 20 'percent are elderly, and of the total low-income homeowners, nearly half (49 percent) are elderly. Persons with Disabilities According to the U.S. Bureau of the Census, a person is considered to have a disability if he or she has difficulty performing certain functions (seeing, hearing, talking, walking, climbing stairs, and lifting and carrying), or has difficulty with certain social roles (doing school work for children or working at a job for adults). A person who is unable to perform one or more activities, uses an assistive device to get around, or who needs assistance fxom another person to perform basic activities is considered to have a severe disability. The U.S. Bureau of the Census estimates that ten percent of the total population in the United States has a severe disability and that 20 percent has some kind of disability? Applying these rates to Chula Vista would result in a 1998 estimate of 16,000 persons with severe disabilities and 32,000 with some kind of disability. The 1990 U.S. Census lists 7,191 persons living in Chula Vista, between the ages of 16 and 64, as having a work, mobility, or self-care limitation. Four factors - affordability, design, location, and discrimination - significantly limit the supply of housing available to households of persons with disabilities. Most homes are inaccessible to people with mobility and sensoW limitations. Housing is needed that is adaptable to widened doorways and hallways, access ramps, larger bathrooms, lowered counter tops, and other features necessary for accessibility. Location of housing is also an important factor for many persons with disabilities as they often rely on public transportation to travel. Group housing, shared housing, and other supportive housing options can help meet the needs of persons with disabilities. These housing options often have the advantage of social service support on-site or readily accessible. 2SANDAG Regional Housing Needs Statement, p. 42. ~ITY OF CHULA VISTA PAGE 17 OF 118 HOUSING ELEMENT 1999-2004 TABLE 8: MOBILITY AND SELF-CARE LIMITATION BY AGE Description I 16 to 64 years [ 65 to 74 years I 75+years I Total Mobility limitation only 1,120 509 803 2,432 Self-care l'unltation only 2,093 427 237 2,757 Mobility and self-care 955 349 698 2,002 limitation only Total 4,248 1,424 1,738 7,191 Source: 1990 U.S. Census (STF3), Table P69 Disabilities can hinder the ability of a person to earn adequate income. "The U.S. Bureau of the Census estimates that 70 percent of all people with severe disabilities are unemployed and rely upon fixed monthly disability incomes which are rarely adequate for the payment of market rate rent.''3 The California Right to Housing Campaign estimates that 15 percent of persons with disabilities in the State of California were living below the poverty level in 1988. Housing advocacy groups report that people with disabilities are often the victims of discrimination in the home buying market. People with disabilities, whether they work or receive disability income, are often perceived to be a greater financial risk than persons without disabilities with identical income amounts. The nonprofit National Home of Your Own Alliance estimates that only two percent of this population own their home compared to the overall homeownership rate of 66 percent.4 Large Families Large families, defined as five or more persons, usually require units with three or more bedrooms and pay a larger part of their monthly income for housing. They often have lower incomes and frequently live in overcrowded smaller units, which can result in accelerated unit deterioration. According to 1990 census data, 6,592 (14 percent) of Chula Vista's 47,824 total households are large families of five or more persons as compared to 13 percent region wide. Of those 6~592 large-family households in Chula Vista, 4,088 (62 percent) are owners and 2,504 (38 percent) are renters. Single Parents Single parents comprise a significant portion of lower-income households "in need." Single- parent households often require special consideration and assistance because they tend to have lower incomes and a greater need for day care, health care, and related facilities. (SANDAG:RHNS:page 137) 3National Parmers in Homeownership, KeyNotes, "Reaching People with Disabilities," 1998, Page 3. 4Ibid PAGE 18 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 - 1990 census data indicate that 10.31 pement of the City's total households are headed by single parents as compared to 9.3 percent region wide. Of these 4,902 households in Chula Vista, 994 (20 percent) are headed by males and 3,90'8 (80 pement) by females. Of the female single-parent households, 1,411 live below the poverty level, that is three percent of the total households. Homeless Throughout the country and the San Diego region, homelessness has become an increasing problem. Factors contributing to the rise in homelessness include a lack of housing affordable to low and moderate income persons, increases in the number of persons whose incomes fall below the poverty level, reductions in subsidies to the poor, drag/alcohol abuse, and the de- institutionalization of the mentally ill. The most recent legislation goveming housing elements (Section 65583111][6]) mandates that municipalities address the special needs of homeless persons within their jurisdictional boundaries. As defined by the U.S. Department of Housing and Urban Development an individual or family who is homeless: 1. Lacks a fixed, regular, and adequate nighttime residence; or 2. Has a primary nighttime residence that is: A supervised publicly or privately operated shelter designed to provide temporary living acconimodations (including welfare hotels, congregate shelters, and transitional housing for the mentally ill); · An institution that provides a temporary residence for individuals intended to be institutionalized; or · A public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings. This definition does not include persons living in substandard housing (unless it has been officially condemned); persons living in overcrowded housing, or persons being discharged from mental health facilities (unless the person was homeless when entering and is considered to be homeless at discharge). A report prepared by the Regional Task Force on the Homeless in May 1998 states that the total homeless population in San Diego County is estimated at 15,000, with approximatel 47 erce or 7,000 persons being resident farm workers and d~-, ~-~ ................. Y P nt ay mout~r~, wlnlln Unula vista the homeless population is estimated at 500 urban homeless and 100 homeless day laborers. Approximately 158 of the total homeless population are enrolled in local transitional shelter programs each day. According to South Bay Community Services (SBCS), the homeless in Chula Vista are primarily families and many of those are the result of domestic violence. ' CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 19 OF 118 The Regional Task Force on Homeless estimates that families account for approximately 25 percent of the urban homeless population in the region and probably represent the fastest growing segment of this population. Studies conclude that half are victims of domestic violence. _, Single adults account for approximately 70 percent of the urban homeless. The majority of single adults are young males. Approximately 40 percent of urban single-homeless men are veterans. The remaining homeless population is comprised of chronically homeless youth and elderly persons. Social service and homeless providers address the supportive service needs of the homeless, as well as housing needs. The many and various needs of the homeless include emergency shelter, transitional housing, social services (i.e., job counseling/training), mental health services, and general health services. Existing service agencies indicate that a growing need exists for limited- term shelter or transitional facilities for homeless individuals and families. Emergency Shelters and Transitional Housing Facilities Many organizations located in other cities offer shelter for the homeless population currently residing in Chula Vista. Table 9 lists the shelter locations both in and near Chula Vista that are known to serve Chula Vista's homeless population. South Bay Community Services (SBCS) is the primary social service agency that provides homeless shelter and services within Chula Vista. SBCS operates four transitional living programs in Chula Vista and participates in the FEMA and County of San Diego Hotel/Motel Voucher Program. TABLE 9: SHELTERS FOR TItE HOMELESS SERVING SAN DIEGO - SOUTH BAY Program Name [ Target Population ] SpecialNeeds I Bed Spaces I City Agencies Seasonal Emergency Shelter ISN Rot'l Ecumenical Shelter - South General General Council of SD 12 Regional Bay (mid Oct- Population Homeless County March) Transitional Shelter Substance Chula MAAC Project Nosotros Adult Men Only Abuse 13 Vista South Bay Casa Nuestra Homeless Youth General 8 Chula Comm. Services Shelter Homeless Vista (SBCS) Casa Nueva Families General 45 Chula SBCS Vida Shelter w/Children Homeless Vista Victims of Chula Families Domestic 40 Vista SBCS Casa Segura w/Children Violence PAGE 20 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 Agencies Program Name Target ~ Be--~-'~ "' Population Special Needs City Spaces Transitional SBCS Housing Families General Chula -~_ Pr. P. P. P. P. P. P. P. P_~am w/Children Homeless 40 Vista Winter Hotel/Motel Vouchers (November through April) MAAC Project Hotel/Motel Families At-Risk Vouchers ~ w/Children w/disability SBCS Hotel/Motel Families At-Risk ~ Vouchers w/Children Definitions: Total Beds 158 Seasonal Emergency A program which provides shelter and support services during a limited portion Shelter of late Fall and Winter months. Transitional Housing Temporary housing and support services to return people to independent living as soon as possible, and not longer than 24 months. Source: Regional Task Force on the Homeless Homeless Prevention Programs and Services For the last few years, the City has allocated Community Development Block Grants (CDBG) funds to SBCS for youth and family support services, housing services, and economic development opportunities. 'Located in Chula Vista, SBCS offers assistance to persons who are "near homeless" through coordination of available services and financial resources and counseling in such matters as financial management and family support. For those persons or households who may be threatened with homelessness due to financial difficulties, Consumer Credit Counselors of San Diego and Imperial County is a non-profit organization that helps persons or households in financial difficulties. Their offices are located in Chula Vista. They provide .educational classes teaching the wise use of credit and money management, and using community resources, counseling, and debt management programs for those who want to avoid bankruptcy. Farm Workers and Day Laborers Farm workers and day laborers are described as those individuals who live in the area and work regularly in the fields or in causal labor situations. Due to the rapid suburbanization of Chula Vista, very little of the County's agricultural employment base is left in the area. According to SANDAG's 1995 Employment Inventory, them are only 63 agricultural workers in Chula Vista, which is only 0.2 percent of the employment base, and 0.6 percent of the workers in agriculture, forestry, fishing, and mining region wide. Chula Vista's day labomrs may work on small construction jobs and odd jobs. Similar to the farm workers, day laborers are often here temporarily and may choose to be homeless in order to send their earnings home to their families rather than using their resources for housing. This was CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 21 OF 118 seen in 1995 when the City of San Diego met some resistance from farm workers and day laborers who were offered to be relocated from encampments into apartments. It is difficult to provide an accurate estimate of this population due to this population's geographical, linguistic, and cultural isolation. The Regional Task Force on the Homeless has roughly estimated a rural homeless population of 100 day laborers in Chula Vista. Almost all are single men. Students Students can impact housing demands in areas that surround universities and colleges. Typically students are low-income and are therefore affected by a lack of affordable housing, especially within easy commuting distance from campus. They often seek shared housing situations or live with their parents to decrease expenses and can be assisted through roommate referral services offered on- and off-campus. Chula Vista is the location of Southwestern Community College with an enrollment of 17,716 for Fall 1999. "Most (70 percent) are part time students and only 27 percent are new enrollees. The average age is 26.8 and 83 percent are ethnic minorities. Sixty-six percent of the students intend to continue their education at a four-year university. The majority of students are employed and 37 percent live in Chula Vista. When surveyed about their needs, none indicated a need for housing. There is no housing office on campus and the college administrators have not heard about housing problems from the students. The Olympic Training Center represents a unique student need in Chula Vista. Approximately 120 of the athletes require short-term stays of one to two months and use the four dormitories at the Center. Approximately 75 athletes require year-round housing, 25 of whom reside at the Center and 50 reside in the nearby community. The average age is 25 years and the average income is under 50 percent of the area median income. Approximately 75 percent are female and 25 percent are male. PAGE 22 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 ~Land Use Characteristics In 1995, 74 percent of the land in Chula Vista was developed, leaving 3,578 developable acres. Since 1995, Chula Vista has annexed additional lands that significantly increase the development capacity in the City. Western and Eastern Chula Vista have distinctive land use character. Western Chula Vista is completely developed with opportune, ties for minor in-fill projects, housing rehabilitation, and redevelopment. Eastern Chula Vista is a newly developing area characterized by master planned communities. In 1997, Chula Vista annexed approximately 9,089 acres of vacant land in Eastern Chula Vista, .additional master planned ames, San Miguel Ranch and Bonita Meadows, most of which was subject to a joint planning effort with the County of San Diego. Two into the City prior to 2004. are expected to annex In Western Chula Vista an estimated 83.89 acres are vacant, for a potential of 519 units In Eastern Chula Vista there is capacity for approximately 29 565 units (this include of the two areas that are expected to annex by 2004) ' s the capacity Employ'merit Characteristi~ In the San Diego region, employment growth out paced population growth between 1980 and 1990. The decade recorded a gain of more than 313,400 jobs, an increase of 47.4 population increased by 62.9,772 people, a growth rate of 34 percent. During percent, while between 1990 and 1996, the recession, percent (202,021 people),esmpl°yment grew only four percent (39,800) while population grew 8.1 Between 1990 and 1994 more low paying than high paying jobs were created in the San Diego region. High Paying jobs increased by 31.4 percent while low paying jobs increased by over 43 percent. In addition, the real wages of high paying jobs have decreased seven percent, while wages in low paying jobs have decreased 15 percent over the same time period (wages adjusted for inflation).6 Chula Vista is forecasted to be one of the fastest growing employment centers in the region because of land available for employment center development, access to major transportation corridors such as Interstate 8 and 805, and its proximity to the U.S.-Mexico International Border. 6 S°urce' SANDAG EvaluaUng Economic Prosperity in the San Diego Region: 1998 Update page $6 ource: SANDAG Evaluating Economic Prosperity in the San Diego Region: 1998 Update page 6 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 23 OF 118 Table 10 indicates major employers in the City of Chula Vista and approximate number of employees. TABLE 10: CHULA VISTA MAJOR EMPLOYERS Business I Type I Employees Non-Retail B.F.Goodrich Aerospace (formerly Rohr, Inc.) Manufacturing 2,344 Sharp Chula Vista Medical Center Hospital 883 Scripps Memorial Hospital Hospital 660 American Fashion, Inc. Manufacturing 388 United Parcel Service Parcel Delivery 3 ! 1 Retail Wal-Mart General Merchandise 349 General Merchandise 336 Costco Wholesale (2 stores) Warehouse Sears Department Store 300 General Merchandise 244 Target (2 stores) Warehouse Albertsons ( 2 stores) Grocery Store 226 Macy's Department Store 211 General Merchandise K-Mart (2 stores) Warehouse 207 Home Depot Building Supplies 206 Source: City of Chula Vista Finance Department PAGE 24 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 Table 11 provides a 25-year projection of employment growth by sector for Chula Vista. TABLE 11: PROJECTED EMPLOYMENT BY SECTOR CHULA VISTA 1995. 2020 Employment SeCtor 1995 2005 2010 2020 1995 - 2020 Change ~~ ~t Civilian Employment 45,996 67,643 73,200 87,533 41,537 90.3% Manufacturing 5,534 6,861 6,528 6,301 767 13.9% Transp., Comm., & Utilities 1,698 2,463 2,534 2,816 1,118 65.8% Wholesale Trade 2,208 4,096 4,779 6,172 3,964 179.5% Retail Trade 10,485 13,944 14,638 16,587 6,102 58.2% Finance, Ins. & Real Estate 2,318 ~ 3,418 4,050 5,541 3,223 139.0% Services 11,108 18,653 20,436 25,905 14,797 133.2% Government 7,632 10,897 12,331 14,516 6,884 90.2% Other* 5,013 7,3 ! 1 7,904 9,695 4,682 93.4% Military Employment 0 0 0 0 0 0 Total Employment 45,996 67,643 73,200 87,533 41,537 90.3% Employment Housing Ratio 0.85 0.95 0.91 0.91 0.05 6% *Eml~loyment in am'icultnr~ rninb, g, o.~a construction industrie~ and self-employed and domestic workers. Source: SANDAG Preliminary 2020 Forecast, February 1999 Employment is projected to increase by 21,647 jobs or 47 percent between 1995 and 2005, with the greatest numeric increases occurring in the services, government, and retail sectors (7,545, 3,265, and 3,459 jobs respectively). Given that retail trade and service jobs are traditionally lower paying, the need for affordability in the local housing market for these employees may be ma~ified, assuming that those retail trade and service employees also reside within the community. Housing should be created to match the growth of jobs and the corresponding average wages. Should housing be unaffordable to those in these growing job sectors, these employees must seek housing in surrounding communities where housing costs are lower. Commuting Patterns Commuting patterns demonstrate the relation of housing to employment opportunities and are a component in the allocation of growth to localities. As a result of the increase in the economic base, employment levels and physical separation of housing and employment sites, the number of people commuting to work has increased. CITY OF CHULA VISTA PAGE 25 OF 118 HOUSING ELEMENT 1999-2004 The majority (73.6 percent) of Chula Vista residents drove alone to work as compared to 71 percent region wide, according to the 1990 census. Approximately 20 percent car-pooled or took public transportation. The remainder rode bikes, walked, or worked at home. The mean-travel time to work was 22 minutes. Housing Stock Characteristics In 1998, Chula Vista had a housing stock of 56,250 units. This is a growth of 12.8 percent from the 1990 total units of 49,849, which compares to a 7.3 percent increase region wide. Projected Housing Units Table 12 presents the housing unit projections for the City of Chula Vista and the San Diego County Region. The City's rate of increase between 1998 and 2005 in housing is more than double that of the region (31 percent vs. 13 percent). The approximately 17,000 new units will generally keep pace with the forecasted population increase of 46,000. TABLE 12: PROJECTED HOUSING UNITS Year I Chula Vista I Region 1995 53,961 996,684 1998 53,968 1,014,859 2005 70,928 1,153,736 2010 80,775 1,245,057 2020 96,518 1,404,231 Total Increase 42,557 407,547 % Increase 79% 41% Source: SANDAG Preliminary 2020 Cities/County Forecast, Februa~ ~ 1999; State DOF March 1998 Housing Type In 1998, the largest percentage (48.5 percent) of housing units in Chula Vista was single-family I detached units, as compared to 50 percent region wide. Table I 1113 below presents the type of housing units in Chula Vista in 1998. TABLE 13: TYPE OF HOUSING UNITS, 1998 Total Single Single Multi- Multi- Mobile Jurisdiction Housing Family Family Family Family Homes Units Attached Detached 2-4 Units 5+ Units Chula Vista 56,250 4,353 27,320 4,113 16,732 3,732 Region 1,014,859 88,128 508,020 74,430 297,373 46,908 Source: California State Department of Finance, January, 1999 PAGE 26 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 Table !-!21_~4 shows that all types of housing units in Chula Vista will significantly increase between 1998 and 2020, with the exception ofmobilehomes, which is anticipated to decrease. TABLE 14: PROJECTED HOUSING UNIT TYPE CtIULA VISTA, 19984020 Housing ~ ~ --~-- ~ ~ o/~ ~ o/--~of Type 1998 Total 2005 Total 2010 Total 2020 Total Housing , Housing Housing Housing Family._____~ 31,673 56.3~, 40,990 57.8% 46,091 57% 54,180 56.1% Multi-Family 20,845 37.1% 26,285 31,068 38,607 40% Mobilehomes 3,732 6.6% 3,~~~~ ~ ~ ~ ~ ' 3.9% Total Housing ..56,250 100% ~ 80,775 i00O/o i 96,518 ~00% _ Housing Age Age of housing is often an indicator of housing conditions. Many federal and state programs use age of housing as one factor,to determine housing and/or community development, needs and the availability of funds for housing Based on the 1990 census, approximately 13,000 units in Chula Vista are now or will be 50 years of age or older by 2004, meaning that older housing comprises approximately 23 percent of the total 1998 housing stock. The older homes are primarily located in western Chula Vista. TABLE 15: AGE OF HOUSING STOCK Year Built Units No. I Percent Pre-1940 1,003 2% 1940-1949 3,474 6% 1950-1959 9,272 17% 1960-1969 11,518 21% 1970-1979 12,902 23 % 1980-1989 11,680 21% "]990-1997 5,409 10% Total 55,258 100% CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 27 OF 118 These older units are a source of affordable housing stock for low- and moderate-income residents as rents and sales prices are usually lower the older the home. It is important for Chula Vista to preserve these units as affordable housing stock through careful monitoring, code enforcement, and rehabilitation. .. Housing Condition Housing condition is often defined in terms of substandard housing. Substandard housing units include those in need of repair and those in need of replacement. Indicators of the number of substandard housing units within a jurisdiction can include units built before 1940 or those lacking plumbing facilities. Age of housing or the lack of plumbing facilities is not always indicators of substandard conditions. Units may be considered substandard by the U.S. Department of Housing and Urban Development (HUD) if they were built before 1940 and have a value of less than $35,000. Only two percent of Chula Vista's housing stock was built prior to 1940 (Table I 131~). These pre- 1940 homes are primarily located in western Chula Vista. Of the 19,838 owner occupied housing units r'~Ported in the 1990 Census, only 106 un/ts or 0.5 percent were valued less than $35,000. According to the 1990 Census, 168 units lacked complete plumbing facilities. Of those units with plumbing deficiencies, 161 of the units were owner occupied and seven were rental units. Housing Tenure : The total estimated number of occupied dwelling units for April 1990 was 47,824 according to the U.S. Bureau of the Census. Of these units, 24,487 (53 percent) were owner occupied and 22,337 (47 percent) were renter occupied. Region wide, 54 percent of the residents owned their own homes. Vacancy Rates Vacancy rates are an indication of housing supply and demand. High vacancy rates may indicate an over supply of housing and/or low demand for such housing. A prolonged high vacancy rate tends to discourage new construction, especially multi-family residential development. A low vacancy rate indicates a high demand relative to supply. A prolonged low vacancy rate tends to elevate rents in the rental stock. Vacancy rates between two to three percent are usually considered healthy for single-family housing; and five to six percent for multi-family housing. However, vacancy rates are not the sole indicator of market conditions, they must be viewed in the context of all the characteristics of the local and regional market. The region experienced low vacancy rates from 1974 to 1984. The increase in vacancy rates after 1984 was attributed to 1981 tax incentives that resulted in the construction of more rental PAGE 28 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 properties. This increase in new units caused the vacancy rate for multi-fatuity units to rise to a height of 8.9 percent in 1987. By 1990 vacancy rates had fallen to 6.2 percent. The San Diego County Apartment Association is the primary source of vacancy rate information -' in the San Diego region. The Apartment Association sends out surveys to its member rental property owners and managers throughout San Diego County twice a year. As this represents only a sampling of rental properties, the numbers do not represent the entire housing stock, but they assist in analyzing vacancy trends throughout the region. TABLE 16: VACANCY RATES CHULA VISTA 1996 TO 1999 Time Period Covered ~ Fall 1996 ~ Fall 199--~'~ 4.3% ~ 3,844[ 110 -- 2.9% Fall 1998 ~ 1.4% Spring 1999 ~ ~ 1.1% Fall 1999 So~ ~ 0.5% With the recession over m3d continued growth in the region, vacancy rates have substantially declined. This coincides with an increase in rental rates. This trend will affect housing shortages, over-crowding and over-payment, particularly among low-income households. Housing Costs Housing costs are indicative of housing accessibility for all economic segments of the community. Typically, if housing supply exceeds housing demand, housing costs will fall. If housing demand exceeds housing supply, housing costs will rise. In Chula Vista, housing costs are less than the median for the entire region as shown on Table ! !517. CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 29 OF 115 TABLE 17: HOUSING COSTS - 1998 Jurisdiction Median Cost of Average Rents Resale Housing Studio [ 1 bedroom I 2 bedrooms [ 3 bedrooms Chula Vista $177,000 $390 $542 $638 $692 Carlsbad $285,000 $480 $618 $781 $2,500 La Mesa $185,000 $487 $578 $707 $930 E1 Cajon $184,000 $405 $485 $581 $807 Imperial Beach $144,000 $440 $489 $598 $790 Oceanside $168,000 $466 $556 $697 $889 San Diego Region $195,500 $448 $543 $685 $916 Source: SANDAG Regional Housing Needs Statement, 1999 At-Risk Units Housing element law requires jurisdictions to provide an analysis and program for preserving affordability of assisted housing developments that are eligible to change fi.om low-income housing uses during the next 10 years. Currently, there are two housing developments (the Meadows of Chula Vista and Eucalyptus Parkview Apartments) which have units at risk of conversion to market rate housing within the next ten years. There are no HUD 236 contracts scheduled to expire during this period. The Meadows of Chula Vista is an 80 unit elderly-person complex, 32 units of which are low- income units. The earliest date of conversion is 2000. Eucalyptus Parkview apartments is a 53- unit complex, nine of which are low-income units. The earliest date of conversion is 2008. Thc units in' both these complexe~ were created through a density bonus program at a time when the units were located in the unincorporated area of the County of San Diego. The estimated market value per unit is $45,000. Costs of New Unit or Preservation of Existing The estimated cost for producing new units to replace these 35 one bedroom and 6 two bedroom low-income units is $4,474,532. This estimate reflects an estimated average direct production cost as follows: PAGE 30 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 TABLE 18: AVERAGE PRODUCTION COSTS OF HOUSING Description Costs 1 Bedroo---------~-~ ~ Land Costs ~ (650 sq ft) ~ -' ~ $25,000 per unit ~ 25,000 { Are~ $20,000 per unit ~ ~ Construction Costs $63/s 40,950 50,400 sta Developer Fees ~ 21,802 per unit '-'------------- ~ 21,~-~' Chula Vi $ 21,802 TOTAL ~ This cost could increase depending on land costs and infrastructure needs to support the construction ofnew low-income units. The estimated cost of preserving the units by purchasing an affordability covenant is shown on Table 19 below. TABLE 19: ESTIMATED COST OF RENT SUBSIDIES CHULA VISTA, 1999 Development Assisted Market Assisted Total Subsidy Units · Rent Rent ~ ~ ~ Gap/month Required Meadows $497 to ~ ~ 1055 Granjas 32 $1,600 (@ ~ ~ $507 $461 $51 to $46 ~ ~ ~~ $50/month) $19,200 Parkview 9 $700 to $575 to ~ 56 Fourth Ave $875 $725 $125 to $150 $1,125 ~ ~. ~ (~$125/month) $13,500 ~!_v,e_n_ t~h,e cos!.of n.ew construction as compared to preservation th~, ~.'~. -- c,~.]Jlure tile OOtlOn OlnUrCho~G,~,~ ~tle~_a_L.~.~ ,- , ,y ut ~-~mla vista Will r ~ "°~°x,q5 ax~otuaOlllIy covenants xor the 41 low-income units at these two apartment complexes. Subsidy payment would be made annually, and would most likely be funded with - redevelopment set-aside funds or Community Development Block Grant funds. CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 31 OF 118 This page is intentionally blank. PAGE 32 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 II. CONSTRAINTS TO HOUSING PROVISION Actual or potential constraints on the provision of housing and the cost of housing affect the development of new housing and the maintenance of existing units for all income levels. Governmental and non-governmental constraints are discussed below. Governmental Constraint~ Governmental constraints can limit the operations of the public, private and nonprofit sectors making it difficult to meet the demand for affordable housing and limiting supply in the region. Governmental constraints include growth management measures, land use controls, building codes, processing fees, and site improvement costs. Regional Land Supply The San Diego region is growing with a population growth of nearly one million persons over the next twerRy years and a need for approximately 360,000 new homes to accommodate this growth. In accordance with SANDAG's 2020 Regionwide Forecast, ~ the current collective general plans fthe regina s c~tles and the county lack sufficient residential'~apacity t. meet this demand.v In addition, much of that capacity is represented in lower-density th~ regiev.'£ single family de_~gnations in areas outl iV~ from exist~lanned~ areas and regional ' ' .. actlV~t_ff__centers. ' · ., - . P ' ' ' . In response to the anticipated growth of the region and the assessment of existing land use plans, SANDAG has developed a 'strategy for regional growth management called Region 2020. The C.;ty of Chula Vista City Council has adopted _a Resolution of Support for REGION2020 and the "smart growth" princivles embodied ~in the .... U~o r~;~,.4~.,,,;,., af the Regional Growth Management strategy: and ~ s'.:'~:ient !~.-nd p!=nned for Unlike some of the re. oh's other cities_h_Chula Vista also has a substantial invento___~ of land available for residential develo m~__~_~k_includi~single family and multi-family homes~apacity. Land Use Controls Land use controls take a number of forms that affect the development of residential units. These controls incl___ud~e ~o.rfin desi ations and the resultin~ use restrictio , development standards, and hermit ,,roc~*~; ....... : ........ ~ ....... ,_,,, ,~ ~trtcnons, -- r ~ ~°°"",~ ~qu~min~ntsb nevelopment lees and local ,growth management programs. The City's Growth Management Program ensures that quality of life standards are maintained as the City ,grows. Unlike many local growth management programs, Chula Vista's progs~ua does not place a numerical limit or cap on new dwelling units. :/2heze cen~o!s i~plement tThe General Plan~ ':,'~.;ch establishes the overall character and development of the community. Chula Vista's General Plan designates substantial areas of vacant land for residential development at a variety of densities. Most of the vacant land is I located within eastern Chula Vista and will be developed within master planned communities CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 33 OF 118 under the "Planned Commtmity (PC) Zone"~, which permits varied densities and the use of flexible development standards. The section on Housing Opportunities presents more detailed information on the availability of residentially zoned land. In summary, there is sufficient vacant land in Eastern Chula Vista to accommodate 29,56528,569 additional units. Of these units, 41 percent will be higher density multi-family (Medium High at 11 to 18 units/acre and High at 18 to 27+ units/acre), and a_Another 11 percent will be in the 6 to 11 units/acre range which typically generates patio homes/townhomes. The remaining 48 percent are at densities for single-family homes (mostly Low Medium at 3 to6 units/acre, and some Low at 0 to 3 units/acre). The residential zoning designation controls both the use and development standards, and influences the housing to be developed. There are currently six different zones that allow residential development by right in Chula Vista. Another seven zones conditionally allow residential development. More specifically~ t:l;he Zoning Ordinance includes a Mobilehome Park (lVlHP) zone, densi~' ~'vv..~ .......... t-Lv · ;~;"-~.~.~..~, mixed-use development zones, and the construction of residential pr.ojects in certain commercial zones. Chula Vista allows dwelling groups, two or more detached dwellings on one parcel with a common yard or court, by right in the R-2 zone and with a Conditional Use Permit (CUP) in the RE & RI zones. All zones require site plan and architectural approval. Housing developments for seniors may be allowed in any zone except the R-I, R-2, C-V, C-T, and industrial zones. Because the residents of such developments have dwelling charactehstics which differ fi.om those of families and younger persons, it is not appropriate to apply all of the normal zoning standards. Senior housing is allowed with a CUP and the Planning Commission and City Council may make exceptions to the density, off-street parking, minimum unit size, open space, and such other requirements as may be appropriate. The Planning Commission and City Council may also adjust required setbacks, building height, and yard areas as appropriate to provide an adequate living environment both within the development and on nearby properties. Any exceptions and adjustments shall be subject to the condition that the development will be available for occupancy by seniors only. The City does not have a provision for accessory dwelling units. Accessory structures are a permitted use in any R zone, however they are not allowed to have a kitchen and are not intended as living quarters. Guest houses are permitted as accessory uses in the Agriculture and Residential Estate (P.E) zones subject to provisions in the Municipal Code and not rented or otherwise conducted as a business. Table 20 and Table 21, below, show the allowed or conditional uses and development standards for each of the zones~ as well as referencing the chapter of the Zoning Ordinance containing the applicable zoning regulations. PAGE 34 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 _ TABLE 20: ZONES ALLOWING RESIDENTIAL DEVELOPMENT BY RIGI-I dwellit One unit per N/A. 35 feet ?nanufactured home or parcel or lot mobile home -Resi~ _ -- 45% Estates (19.22) ave.; 15,000 - s.f. min. Residence _50% 28 - One and~ 55% 28 Family Residence or attached SF - (_1.9.26) ~weIlin[ - Exc Mobilehome Park By plan By plan ~ A-6partment ~0% feet Residential (19.28) townhomes or duplexes min. ~By m~ax. building setbacks site; min. 1350s.f. per uni__~t ~ see By plan BY plan _Commtmiw (19.48) ~ PC TABLE 21: ZONES CONDITIONALLY ALLOWING RESIDENTIAL USE,'; CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 35 OF 118 ?Z~n~Apphcable~ ............. 0rdmanee~ ~R~sid~ti~l ~U ge~¥~l l~wed ~]I .~C°~difiuns fo~Reside~fiaL~~ _.~ accessory use o f caretaker. P-Q - Public/Quasi Public Single family unit as an Must be for the exclusive use -. (19.47) accessory use of caretaker. Some development standards, such as parking, are based upon use rather than the zoning designation. The parking standards for residential uses vary based upon the unit type. Single family homes and duplexes require a two car garage.~ Townhouses require two parking spaces to be provided in a garage or carport. Apartment parking standards are less restrictive: One and one-half parking spaces for each studio or one bedroom unit and two parking spaces for units with two or more bedrooms. No guest parking is required. As specified in Housing Element Program 3.3.2 - Development Standards, the City will evaluate and consider, on a case-by-case basis~ the possibility of waiving or modifying certain development standards to encourage the development of low and moderate-income housing. The City may proyide a reduction or modification in site development standards, zoning code or architectural design requirements for those eligible affordable housing oroiects requesting such reductions or modifications consistent with Government Code Section 65925(h). Growth Management The following growth management provisions exist in Chula Vista: a. Threshold Standards: Adopted in November 1987, the "thresholds" established performance criteria and standards for eleven public facilities and services to ensure residents' "quality- of-life" in conjunction with growth. They addressed such matters as minimum "Level of Service (LOS)" to be maintained on roadways, police and fire response times, minimum park acreage and library square footage per 1,000 persons, and guarantees for school, water, and sewer service as examples. b. The Standards included' two types of implementation measures, those for application by staffon a project-by-project basis, and those to be applied Citywide on a periodic basis. For the latter, a Growth Management Oversight Commission (GMOC) was formed and tasked with an annual review and report on Citywide compliance. c. Growth Management Element: Incorporated with the General Plan Update in April 1989, it sets forth the City's goals, objectives, and policies related to protection of residents' quality- of-life. This element established a City commitment consistent with the concept of the Threshold Standards and Controlled Residential Development Ordinance. d. Growth Management Program: Adopted in April 1991, it serves as the implementing mechanism for the Growth Management Element of the General Plan. It sets a foundation for carrying out City development policies by directing and coordinating future growth to ensure timely provision of public facilities and services. As such, its primary focus is Eastern Chula Vista where large tracts of vacant land are to be developed. The program PAGE 36 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 199%2004 document sets forth guidelines for relating development phasing to facilities master plans at the project level, and establishes requirements for facilities guarantees at various stages of project planning and review. e. Growth Management Ordinance (Chula Vista Municipal Code Chapter 19.09): Enacted in May 1991, codifies Growth Management intents, standards, requirements, and procedures related to the review and approval of development projects. The principal foundation of the City's various measures is recognition that large scale future growth creates tremendous demands for public facilities and services, wtfich if not adequately addressed, will result in shortages detrimental to public health, safety, and welfare. Development of the Growth Management Program involved preparation of several facilities master plans sufficient to support the land use base of the updated City General Plan consistent with adopted Threshold Standards. Preparation of those master plans included a comprehensive survey and analysis of existing conditions and levels of service. Although the. Growth Management Program is targeted toward E-eastern Chula Vista where large vacant tracts of land are being developed, Threshold Standards ar~ applicable Citywide. Through the Implementing Ordinance (Chula Vista Municipal Code, Chapter 19.90) discretion is reserved to exempt those projects which through their size and/or location do not possess potential to significantly impact facilities and services. This level of significance is defined through the environmental review process on each project, which specifically measures related facility and service needs, in comparison to Threshold Standards performance, and identifies if mitigating actions are necessary. In such instance that a project, due to its location and/or timing, is required to provide a facility(ies) exceeding its needs, a benefit assessment is made to determine the amount and/or location of additional developments being served, and appropriate financing mechanisms and reimbursement agreements are then established. The City's ability to accommodate its Regional Share allocation is not impacted, as the measures do not establish any form of building cap. Rather than attempting to artificially limit growth, the measures are aimed at ensuring adequate and timely services and facilities for growth produced by market forces. Building Codes and Code Enforcement The City's Planning and Building department administers and enforces the California Building Code, which ensures construction in accordance with widely adopted health and safety standards. The City does not vary fi.om these standards. The City of Chula Vista administers code enfomement programs designed to protect the health, safety, and welfare of its citizens. The City's Planning and Building department, in conjunction with the City Attorney's office, undertakes abatement proceedings for deteriorating and substandard housing or illegal housing units. The City's Code Enfomement Section of the Planning and Building Department currently detects and abates violations of the State and City I.:iTY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 37 OF 118 Housing and Health Codes as they relate to substandard housing. The Code Enforcement Section administers the Community Appearance Program in an attempt to educate and encourage corrections of Code violations fi.om reaching a point of costly remedy. On- and Off-Site Improvements The City has a variety of requirements established by both the Zoning and Subdivision Ordinances, such as development standards and off-site improvements. These requirements are those necessary to ensure adequate livability and lasting value in housing such as sewers, streets, curb-gutter-sidewalk, lighting, drainage, recreational open space, parking, etc. The City allows for the reduction of standards to help offset costs for senior housing projects. The City also considers the reduction of standards to help offset costs and financial participation in the construction of infrastructure for those eligible housing projects as a method of "additional incentive" under the State's revised Density Bonus Provisions. Fees and Exactions According to the BIA's 1999 Development Impact Fee Survey, the City of Chula Vista ranked sixth out of the 18 jurisdictions and the County of San Diego in average total residential I development impact fees as shown in Table !! !22 below. Since fee values vary between and sometimes Within jurisdictions, a method was needed to compare fees across jurisdictions. To accomplish this task, a prototypical structure was created for residential development. For the prototypical structure, existing fee levels by individual jurisdictions were applied. The prototypical structure'encompasses characteristics representative of development averages. The BIA created a prototypical structure for residential development based on a three-bedroom, two-bath, single-family home with a 2,000-square foot living area, 400-square foot garage, and a 240-square foot patio. The construction was Type V, wood frame construction. PAGE 38 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 :gASLE-/I4.T. ABLE 22: RESIDENTIAL DEVELOPMENT IMPACT FEES* AS LEVIED BY JURISDICTION, PER PROTOTYPE SAN DIEGO REGION, 1999 Solana Beach $32,458 Poway $29,974 Carlsbad $27,136 City of San Diego $26,586 San Marcos $24,267 Chula Vista $23,927 "Santee $23,532 Escondido $20,999 Oceanside $20,695 Encinitas $18,850 Vista $17,041 County of San Diego $16,564 El Cajon $12,460 *Impact fees include fees collected by non-city agencies (water, sewer, and school distr/ct fees) Source: BIA's 1999 Development Impact Fee Survey The ranking of these jurisdictions in respect to fees shows that cities with newly developing areas (where no facilities/services are now available) tend to have higher fees than those which are experiencing mostly in-fill development. Most new growth in the region will be in newly developing areas where high fees are needed to assure that new growth pays its way.? The effect of these high fees can be partially mitigated by inclusionary programs where the affordability of the units is assured and development costs (including fees) can be spread'over a large and varied mixture of housing types. In general, the City requires affordable housing projects to pay the same fees as market rate residential developments. When faced with high or increased development costs, these projects do not have the ability to pass these costs on to the project due to their budget limitations and rent restrictions. According to affordable housing developem, permit processing fees and local development impact fees are one of the major governmental roadblocks to the production of affordable housing for low-income households. Based upon information obtained fi.om tax credit applications of several affordable housing developments, local permit processing fees represent ten to fifteen percent (10 to 15%) of the development budget of these developments. Affordable housing developers strongly advocate the City to waive, reduce, or at a minimum, defer fees for affordable housing. ?Proposition 13 significantly hampers a jurisdiction's ability to raise general fund revenues for facilities/services for new growth. CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 39 OF 118 Affordable Housing Program Inclusionary housing programs are seen as "thc best, perhaps even the only, currently available means by which residential integration can be actively fostered" and housing affordable to a less affluent population provided,a Without the availability of offsets and flexibility to such programs, inclusionary zoning can become a constraint or an exaction on new development by shifting thc burden of subsidizing Iow-income affordability from government to private buildem? Chula Vista has an inclusionary policy which requires all projects of 50 or more dwelling units to provide ten percent of the housing for low- and moderate-income households, with five pement affordable to low-income households. The requirements primarily affect those master planned projects in the developing eastern portion of Chula Vista. This program also provides for alternate methods of compliance including the dedication of land, off-site development, and in- lieu fee. The cost of compliance may be mitigated by regulatory concessions, waivers, bonuses, or financial assistance. The City typically participates financially in the development of affordable housing through a residual receipts loan to assist with de~,elopment costs such as property acquisition and development fees. The City has also provided other regulatory concessions, such as reductions in parking and density bonuses as offsets. Processing and Permit Procedures To verify compliance with the variety of use regulations and development standards, development proiects undergo varying de.re'ecs of discretionary review. The extent and duration of project processing varies widely by type of application. Table 23 below shows the types of discretionary review for residential development and their typical processing time and costs as of January 2001. The processing times listed below include the typical time of completing and reviewing a permit (time from the completed application date to final decision date). The costs listed are only permit processing costs and do not include any costs associated with facility impact or in-lieu fees. s Mallach 1984, lnclusionary Housing Programs: Policies and Practices. New Bnmswick, NJ: Center for Urban Policy Research, Rutgers University. 9 Coyle, Timothy. 1994. Barriers to Affordable Housing. Memo for Housing Task Force Members, Department of Housing and Community Development (HCD). Sacramento, CA. November 2. PAGE 40 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 TABLE 23: DISCRETIONARY REVIEWS FOR TYPCIAL RESIDENTIAl, O VE OPME TS House (1 unit} or Duplex .Design Review Zoning 6-8 wks $350 ~Onl¥ in Precise ~dministrator · Plan Districts and Desi Control Modifying .Districts (D)) '"Small MF Initial Study Decision 12-16 wks $1,000 Deposit Project with or Making Body* . without Paree fDMB} .Map (2-4 units) $I,000 Deposit Desien Review Zoning 8-10 wks Administrator or Design , .Review Committee Medium-sized Initial Study *DMB 12-16 wks $1,000 Deposit Prqject with Tract Map (5- Desi.~n Review Design Review $1,000 Deposit 50 units) Committee .!0-12 wks $1,000 Deposit Tract Map Planning Commission and/or City Council SI,000 Deposit with Tract Map .{more than 51 ..Design Review Desi,gn Review ..units) Committee .$. !,000 - $2,000 Deposit Tract Map Planning _l. 0-12 wks ~ommission .$ l~000 Deposit and/or City Council CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 41 OF 118 Notes: Steps/permits for 2 or more units typically involve: o Environmental Clearance o Design Review · Processing times overlap and are typically from acceptance of a complete application to final discretionary action. ,,Costs: o Includes permit processing fees, and do not include facility impact fees or in-lieu fees. o Small Proiect types typicall,/is covered by the deposit o Medinm to Large Proiects often exceed the required deposit · Environmental Review o Initial Study typically results in a Negative Declaration or Mitigated Negative Declaration or in some cases an Environmental Impact Report. o Projects that are determined through the Initial Study to have significant environmental impacts require an Environmental Impact Report (EIR). Typical processing time would then be 12 to 14 months. For an EIR typically an additional $5,000 deposit is required. Residential projects requiring subdivision of land and additional regulatory approvals such as re- zonings will require longer periods of review than those for which only ministerial approvals are :"'~:1 ne~ede~d~. Subst~-.".,~ a~, .... ; ........ ; .......... a a;.,~, ..... , o~,;...,., .... a ,,~,.~.. ,.. ......... d cost8. The costs resulting from the additional review time helps determine the tree cost of housing as such costs are added to the price of housing and ultimately passed on to the consumer. The processing required, however, is necessary to comply with the law and ensure proper and thorough review without compromising environmental quality or public safety. Priority processing is utilized to reduce the processing time for the development of affordable housing. Through coordination with the Community Development Department, the Planning Division will continue to priOritize projects that provide affordable housing. The Planning and Building Department is structured to specialize staff in the various facets of planning a project (Community Planning Section, Environmental Section, Development Processing Section, etc). This enables staff with the greatest expertise on a particular aspect (such as environmental a review, design review, or site plan review) to "fast track" their review. Sections also coordinate internally to concurrently process all applications related to a single project, and in the case of large, master planned developments, staff teams are specifically assigned to process each development. Specialized staff teams and inter-division coordination results in substantial savings of time in achieving complete project approval and the start of construction. PAGE 42 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 Affordable housing projects are extremely sensitive to processing and permit procedures that result in time delays. Such time delays in the processing of affordable housing projects lead to higher costs for the project and jeopardize available funding sources. When faced with high or increased development costs, these projects do not have the ability to pass costs on to the project due to their budget limitations and rent restrictions. Additionally, they are time sensitive due to the established deadlines for funding sources. Affordable housing developers strongly advocate the City to continue to utilize a fast track process for affordable housing. Federal and State Environmental Protection Regulations The CEQA (California Environmental Quality Act) requires environmental review for most proposed discretionary actions and for certain projects, review under NEPA (National Environmental Policy Act) is also required. The State and Federal Endangered Species Acts and the Clean Water Act can further affect project requirements, and in southern California, have largely brought about the Multiple Species Conservation Program (MSCP) which prescribes the assembly and management of large-scale habitat preserves to protect sensitive biological resources fro? the potential adverse affects of development. Chula Vista has a substantial amount of environmental constraints due to its natural resources, sensitive habitats and coastal location. Environmental reviews under the above noted regulations can directly affect the processing of projects and result in higher development costs. These costs are associated with the extent of required environmental evaluations and analysis, resulting mitigations, mandated public review periods, and the fees, timelines and requirements imposed by State and Federal agencies for the processing and granting of necessary permits. Costs resulting from the environmental review process are added to the cost of housing and are subsequently passed on to the consumer. However, the presence of these regulations helps to preserve the environment and ensure environmental safety and a better quality of life for residents. In order to minimize any delays, the City, whenever possible utilizes provisions within CEQA that allow for "tiering" of environmental reviews. This approach has been used for many of the residential master planned communities in the City's developing eastern area. The first tier review includes analysis of general issues and impacts associated with the overall development in a broader Environmental Impact Report (EIR). Subsequent tiers include analysis of narrower plans and projects within later EIRs and/or Negative Declarations, focusing only on the impacts of individual projects that implement the overall development plan. Therefore, projects within subsequent phases of the development may proceed without the need for substantial additional environmental review, which can lead to relatively faster processing of these individual projects. With further regard to the MSCP, while the set-aside of land for habitat preserves can affect the location and amount of land available for housing, Chula Vista's proposed preserve configuration is largely in keeping with open space areas already established in the City's current General Plan. As a result, the City's proposed MSCP Subarea Plan does not have a substantive affect on the availability and capacity of land planned for new housing. Although the costs associated with mitigating habitat loss and assembling the preserve lead to higher costs associated with development, the MSCP's comprehensive approach to establishing permissible CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 43 OF 118 development areas in relation to required preserve areas will effectively reduce the uncertainty as to mitigation requirements and costs for future development, than would have otherwise existed without the MSCP. Infrastructure Costs Proposition 13, a voter initiative which limits increases in property taxes except when there is a transfer of ownership, may have increased the cost of housing. The stream of funds received fi.om increasing property taxes had been used as source for the financing of public infi'astructure. Residential development cannot occur in the absence of supporting capital infrastructure such as streets, sidewalks, schools, parks, sewer, water, and electrical service. In. the aftermath of Proposition 13, municipalities have looked to other financing mechanisms to raise funds to pay for the necessary infxastructure. Public fmancing of infi.astmcture has turned toward revenue, lease-obligation, and other bond sources. Additionally, under California law, cities and counties have the authority to require developers to pay for infi.astructure improvement through fees, the dedication of land to public use, or the construction of public improvements. The use of development fees in place of public debt accelerated rapidly in the aftermath of Proposition 13. To the extent that cities continue to raise development fees to recover the infi.astmcture costs associated with growth, there is a risk that such costs will result in higher housing prices that reduce housing affordability. In effect, the initiative fomed local governments to pass on more of the costs of housing development to new home owners. The law also increased the initial cost of purchasing a home as future tax savings are imputed into the purchase price. Construction Defect Litigation With the cost of housing rising, there is a growing need to build more affordable, for-sale, single- family attached housing as a means to increase homeownership opportunities and affordable housing options. Construction defect litigation has served as a barrier to the production of this necessary rung in the housing ladder. California Civil Code provides that any construction defect action "may be brought against any person who develops real property or who is involved in the design and/or planning of the property". This provision, combined with the ten year statute of limitations, makes developers responsible for any defect that occurs, including ones that were not apparent at the time of construction. In the past decade, the expense of construction defect litigation and threat of litigation has resulted in a decrease in the number of new attached residential units being built (i.e., condominium, townhouse). From 1995 to 2000, numerous bills have been introduced to the State Legislature to address this issue. Construction defect litigation remains a barrier to the production of single-family attached housing. PAGE 44 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 Non-Gov__ernmental Constraints A number of private sector factors contribute to the cost of housing. In 1998, for the construction of a single-family home costing $215,400, construction materials and labor .accounted for approximately 33 percent of the total development costs. Land and site Improvement costs accounted for 37 percent of costs; developer overhead marketing and profit accounted for 14 percent; fees accounted for ten percent; and financing costs accounted for six percent. The following is a discussion of these factors and their impact on affordable housing development. Land Costs Residential land prices contribute significantly to the cost of new housing. Location factors such as proximity to freeway access, public facilities, coastal views, and such intangible factors as image and quality of life contributes to demand and price of land. The cost of improving the land, grading and added infi'astnlcture are also major contributors. Land zoned for higher densities cofinnand higher market nr~,-~ In 1998, land costs in the San Diego region ranged from $65,000 to $230,000 per lotfi°'' ...... Residential land costs in Chula Vista, on average, are currently $200,O00/acre, with the specific dollar/unit ratio obviously dependent upon zoning location and infrastructure. In surveying recent land purchases for several proposed single-family developments in the City, the average per lot cost for the raw land was approximately $40,000. Improved land costs can vary widely depending upon the mount of improvements necessary including the amount of site grading to create buildable lots. As an example, a recently approved master planned project with 1,900+ units, has an estimated per unit site work cost of $22,500. Construction Costs Construction costs are the second highest component of new housing. Construction costs are the total costs to developers exclusive of profit, but including fees, materials, labor, and financing. In 1998, multi-family housing construction costs in Chula Vista average about $50 per square foot, excluding fees, land costs, and parking. Single-family home construction range from $50 to $70 per square foot. The current housing recovery has left the region with a labor shortage that is leading to higher labor costs.~ ~ ~°Source: Building/ndustry Association, 1998 t ~Source: Building Iadustty Associatioa, 1998 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 45 OF 118 Estimates used for the sample development pro-forma followed these cost assumptions: TABnLE H 2TABLE 24: COMPONENT COSTS IN MULTI-FAMILY HOUSING New Construction Unit Price $105,000 Land $ 25,000 (24%) Hard Costs (improvements, const.) $ 60,000 (57%) Soft Costs (arch., eng., marketing, etc.) $ 20,000 (19%) Chula Vista also participates in three programs that use volunteer labor (sweat-equity): Habitat for Humanity, Caring Neighbors, and Christmas in October. These programs have assisted in creating new or conserving existing affordable housing. Availability of Financing In 1998, interest rates in the San Diego region had fallen to their lowest levels in 30 years. Finance costs comprised approximately six percent of the total construction cost for a single- family house, a decrease of one percent since 1990.~2 Interest rates also affect homeownership opportunities. In September of 1998, the posted interest rate on resale single-family homes was 6.34 percent on a 30-year, fixed-rate loan with a 20 percent down payment. On the median-priced home in San Diego County costing $199,000, the monthly interest and principhl payment would be $990. In April 1989 when interest rates peaked at 11.3 percent, the comparable monthly payment on a median-priced home costing $174,000 was $1,359. According to 1998 HMDA data analysis, multi-family lending was made available in every census tract in the City for the purposes of new construction and/or purchasing of existing housing complexes and home ownership. Citywide multi-family (5+ units) lending exceeded $18,088,000 on 37 loans, and $37,339,000 on 370 non-occupant loans. Homeownership mortgage lending exceeded $293,185,000 on 1,742 loans. Capital available for development of affordable housing includes: Redevelopment Set-Aside, Community Development Block Grant (CDBG), HOME funds, Federal and State Low-Income Housing Tax Credits, lending institutions' commitment under CRA, and Multi-family Revenue Bonds. 12Source: Building Industry Association, 1998 PAGE 't6 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-200'1 III. EVALUATION This section analyzes the City's accomplishments during the 1991-1999 housing element cycle. This is done by evaluating the previous housing element th · , - City progress towards meet~n its . , e.C~ty s success ~n meet~n ~ts oals g Coastal Zone requirements, and fulfill,~,.,., ^,-.,-~,- · g. ' housing goals. The evaluation is used to formulate goals and programs to be included in the 1999-2004 housing element. Evaluation of _Previous I-Iousinl~ El__emeul The 1991-1996 Chula Vista Housing Element contained a series of goals related to new conslruction, rehabilitation, preservation, and housing assistance. The following section reviews progress in implementing each of these action items. Effectiveness and Progress During the i991-1999 planning period, Chula Vista has consistentl rovi housing oppommities, both sin,,l o,,,4 _..,,:_, ,- ., . . Y p ded a variety of new ~ e ~,,~ mmuple Iaffllly, 111 seeking to achieve a "balanced community." The City has approved several large master planned residential communities, each offering a wide range of residential densities, commercial services/employment, industhal employment, and recreational opportunities in a coordinated living environment. In order to ensure economic integration of neighborhoods, the City's Affordable Housing Policy requires these and other residential developments over 50 units to provide a minimum of ten percent of the units to low- and moderate-income households. Two sets of goals were set forth in the 1991-1996 Chula Vista Housing Element, both of which were generated by SANDAG. The first allocation of"Fair Share ..... as shown in Table .n.! ~25 below is the SANDAG olatlbrdable housing needed. These were~e goals used to determine if a jurisdiction is eligible to self-certify its 1999 Housing Element Update. Chula Vista had a Fair Share goal of 1,058 additional affordable housing opportunities and actually created 1,796. A listing of those 1,796 affordable housing opportunities created is provided in Appendix A to this document. Therefore, Chula Vista is eligible to self-certify its 1999 - 2004 Housing Element. ~TABLE_25: CHULA VISTA 1991-1999 FAIR SHARE AFFORDABLE HOUSING GOALS AND PERFORMANCE Afford~able. ff~usingFair I ._ 19.91-1999Affordable ~mance T-o-tals I CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 47 OF llS The second set of goals related to Regional Share of new home construction needs for all income groups. These goals are set forth in Table gg26 below. TABLE Ill-2 TABLE 26: REGIONAL SHARE COMPARED TO ACTUAL UNIT CONSTRUCTION 1991-1999 Very Low- Moderate- Above Total Description Income Low-Income Income. Moderate Units Regional Share 1,232 628 131 335 2,326 Units Built 133 261 1,013 4,803 6,210 This table shows that the City made progress towards providing its overall fair share of new construction, but fell short in the very Iow- and low-income categories. However, this is partially mitigated by the significant number of low- and very low-housing oppommities created through rental assistance. This indicates that in the 1999-2004 housing element cycle, the City should seek additional ways to work cooperatively with for-pm fit and non-profit corporations to meet the new housing needs of lower-income households. Specific Progress Related to Housing Objectives The following evaluates housing performance by the specific objectives set forth in the 1991- 1996 Housing Element. OBJECTIVE 1 Achievement of a balanced residential ~ommanity through integration of low- and moderate- income housing throughout the City, and the adequate dispersal of such housing to preclude establishment of specific low-income enclaves. Im_.~plemen tin~ Actio ns A. The Affordable Housing Program (AHP) requires a minimum of ten percent of each housing development of 50 or more units to be affordable to low- and moderate-income households, with at least one half of those units (five percent of project total units) being designated for low-income households. Responsible Agencies: Planning, Community Development Department, and Housing Advisory Commit-tee. Quantified Objective: 437 newly constructed low-income units. Cumulative Results: 53 low-income units and 111 moderate-income units were constructed under the Affordable Housing Prog~un. No in-lieu fees were collected. PAGE 48 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 TA-~LE !!! 2TABLE 27: AFFORDABLE HOUSING POLICY Projects Low Income Moderate Income Goal I Achieved Goal I Achieved Goal 437 0 0 0 Cordova 0 40 0 0 Sanibelle 0 0 0 72 Cabo 0 13 0 39 Total 437 53 0 111 Production of housing under this objective is directly the result of new home (market rate) construction. The objective set in 1991 of 437 assumed a level of market rate housing constmction..that did not materialize. Om-E CTrv'E 2 The provision of adequate rental housing opportunities and assistance to households with low and very low incomes, including those with special needs such as the elderly, handicapped, single-parent households, and large families. Implementing Actions A. Facilitate the Use of Federal Funding as Available. B. Facilitate the Use of State Funding as Available. C. Assist Non-profit Community Development Corporations. D. Encourage and Support Federally Assisted Housing Projects E. Support a Shared Housing Program F. Assist the County Housing Authority to Produce a Minimum of 80 Public Housing Units G. Encourage Use of the Density Bonus Program. H. Investigate Need for Single-Room Occupancy Hotels. Responsible Agencies: Planning Department, Community Development Department, and City Attorney. Cri'Y OF CHULA VISTA PAGE 49 OF 118 HOUSING ELEMENT 1999-2004 Quantified Objectives and Cumulative Results: :gABI=~gl-4TABLE~28: NEW RENTAL HOUSING OPPORTUNITIES ~ Description New ~_b~ectives ~ Difference Construction ~ Objective 2 Public Housing ~ ~ Senior Housing ~ ~ Non-Profit Housing ~ ~-~- Density Bonus ~ ~ 3 (60) Senior Density Bonus ~ ~ 0 ~ Relocation Housing 100 ~' ~ Subtotal ~ ~ ~ ~ 162 (275) ' RentalAssistance - Objective-~-'~ New Section 8 (Certificates & Vouchers) 200 493 Shared Housing Program ~ ~ ~ Subtotal 50--~'-'~-~ ~ 9~' 43----'----'-'~ Total -- ~ ---------------_ ~ 937 1,098 ~ From 1991-1999, the City continued to work cooperatively with non-profit corporations and other governmental agencies to leverage resources to create rental housing opportunities, and in many cases housing for large families. Thc funding sources for new construction included tax credits and HOME. Working with the County Housing Authority and the Article 34 referendum authority (granted by voters in 1978), 38 family-sized public housing units were built. Section 8 rental ' assistance created the most affordable housing opportunities during this period. The City also assisted non-profit corporations such as South Bay Commurfity Services (SBCS) with grants for capacity building as well as gap financing. Community Development Block Grant (CDBG) funds were also used for shared housing services provided by the Lutheran Social Services. Three additional rental housing projects are underway and will be completed during the 1999- 2004 housing element cycle. PAGE 50 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 OBJECTIVE 3 The broadening of available housing types and the increase of home ownership opportunities for low- and moderate-income households. Implementing Actions A Expand Home Ownership Opportunities through the Affordable Housing Program B. Distribute General Marketing and Home-Loan Information to the Public C. Institute First-Time Home Buyer Loan Programs D. Implement Community Reinvestment Home Loan Programs E. Explore Equity Share or Deferred Loan Programs F. Explore Participation in Sweat-Equity Projects G. Inform Seniors of the Reverse Annuity Mortgage Program II. Investigate Feasibility of Applying for Mortgage Credit Certificates I. Pursue Additional Tflx-Exempt Single Family Mortgage Revenue Bonds J. Encourage Educational Programs for Homeowners Responsible Agencies: Community Development Quantified Objective: There were no quantified objectives. Cumulative Results: The City was successful in its application for an allocation of Mortgage Credit Certificates (MCC) and initiated the MCC program in September 1991 and issued the first certificate in December 1991. During the planning period, the City has issued 206 MCCs, with approximately 45 percent for low-income households. A sweat-equity approach was achieved through the City's financial participation in a Habitat for Humanity project in Chula Vista. The City provided funds for rehabilitation costs. Working with a private developer, the City explored the need for Single Room Occupancy hotels and discovered a limited market and no continuing interest by the for-profit or non-profit community to build. This experience also reconfh'med the priority needed for family housing, especially large families. CITY OF CHULA VISTA PAGE 51 OF 118 HOUSING ELEMENT 1999-2004 The City did not implement any specific homeowner education program or information distribution on the Reverse Annuity Mortgage. These programs, although generally good ideas, never rose high enough on the priority list and if implemented would not have resulted in new housing opportunities. Om-eCTIVE 4 Preservation ofmobilehome park living as a source of affordable housing. Im__~emen tin_~g_Aetions A. Continue to provide grants to low-income families to rehabilitate their mobile homes through the Mobile Home Rehabilitation Grant Program (Trailer/Mobilehome CI-I~ Program). B. Explore upgrading trailer parks to allow conversion to exclusive mobilehome park zones. C. Monitor and enforce the City's Rent Arbitration Ordinance to protect the rights of mobilehome residents in preserving this affordable housing alternative. To provide financial assistance to low-income residents requesting arbitration through the Rent Arbitration Assistance Fund. D. Monitor and enforce the City's Mobilehome/Trailer Park Conversion Ordinance to protect the rights of inobilehome residents. E. Assist mobilehome park residents to purchase their parks and convert to resident ownership by operating the City's Mobilehome Assistance Program and assisting with the application for other funding sources such as the State Mobilehome Assistance Program. F. Promote participation by referring eligible residents to the San Diego County Mobilehome Rent Assistance Program. G. Identify new programs in cooperation with the Western Mobilehome Park Owners Association to preserve the affordability ofmobilehome park residency. Responsible Agencies: Community Development Department, City Attorney, Planning Department, Building and Housing Department, and Mobilehome Issues Committee Quantified Objective: There were no quantified objectives. Cumulative Results: The City provided rehabilitation assistance to 287 low-income single-family and mobilehome owners. PAGE 52 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 The City revased the rent arbitration ordinance to simplify the process, eliminate the fee and generally make it more user fi-iendly. Implementing the ordinance is on-going and two to three cases of contested rent increases are heard each year. The Mobilehome/Trail~'park Conversion Ordinance has been triggered only once since 1991. The Twin Palms Mobile Home Park requested conversion. After hearings and analysis, closure of the Park was approved, by the City Council. _OBJECTIVE 5 -*,-, The systematic renewal, rehabilitation, conservation, and improvement of the residential neighborhoods o~fthe Chula Vista Planning Area. A. Preserve Ai-Risk Affordable Housing Units B. Implement a Pro-active Neighborhood Improvement Program. C. Implement the Multi'Family Housing Inspection Program D. Removal of Dilapidated Structures E.. Implement Rehabilifation Programs F. Implement the'Neighborhood Revitalization Program (NRP) G. Continue to Regulate Condominium and Stock Cooperative Conversions To Protect Existing R~sidents ' ' H. Encourage EducationaI Programs for Homeowners Responsible Agencies: Community Development Department and Planning and Building · : Deparlment. CITY OF CHULA VISTA HOUSING ELEMEl~r~1999-2004 PAGE 53 OF 118 Quantified Objectives and Cumulative Results: I Y-ABLE414~TABLE 29: HOUSING REHABILITATION Description I Objectives I Units Achieved I Difference Rehabilitation & Conservation Objective 5 At-Risk Units 528 300 (228) Single Family & Mobilehome Rehabilitation 200 213 13 Rental Rehabilitation 65 -0- (65) Total 793 513 (280) From 1990 to 1993 the City's Neighborhood Revitalization Program was implemented in the Otay neighborhood of Castle Park. CDBG funds were used to improve and enhance the area through various community design elements, upgrading infrastructure, and rehabilitation of homes. There were no proposals to convert apartments to condominiums or cooperatives. The City's Multi-family Housing Inspection program continues to be implemented. All multi- family housing in the City is inspected approximately every three years for conformance to minimum housing standards as established by State Law. The program accounts for 554 properties that include over '15,400 dwelling units. An additional 26 hotel/motel properties with over 1,600 units are inspected as well. Oea-~c~v~ 6 To provide housing assistance to individuals and families who are homeless and enable them to move back into permanent housing. Implementing Actions A. Participate in a Regional Approach to Address Homelessness B. Facilitate Transitional Housing Programs C. Identify Non-profit Providers to Operate Emergency Shelter Programs D. Support Existing Services for the Homeless Responsible Agencies: Community Development Department and Non-Profit Social Service Providers Quantified Objectives: New construction or rehabilitation of 20 units of transitional housing for very low-income homeless persons. PAGE 54 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 Cumulative Results: The City's Redevelopment Agency provided Redevelopment Low- and Moderate-Income Housing Set-aside Funds to assist South Bay Community Services (SBCS) to acquire various properties for transitional housing programs. Casa Nueva Vida is a short-term housing developmant program for 25 homeless families. Additionally, Redevelopment funds and HOME funds were also provided to SBCS for two units of*p+4Xunits of 1~'ansig for persons fleeing from domestic violence. The City has participated in regional approaches to addressing the needs of the homeless population. The City is represented on the San Diego County Regional Emergency and Shelter Program (FEMA) and the San Diego County Regional Continuum of Care Advisory Council. The City has provided financial assistance to the County of San Diego's Cold Weather Hotel/Motel Voucher Program since the implementation of the program in 1997. OBJECTIVE.7 Ensure the successful implementation of housing policies and programs through effective coordination, monitoring, and evaluation. Implementing Actions A. Review and Revise Affordable Housing Standards B. Implement an On-going Monitoring and Evaluation Program C. Establish an Affordable Housing Quality of Life Threshold Standard Responsible Agencies: Community Development, Planning and Building Department, and Housing Advisory Committee Quantified Objectives: N/A Cumulative Results: The City's Housing Advisory Committee continues to be involved with the implementation of housing policy through housing project review. The City Council becomes involved with the annual review of the Consolidated plan and periodic review of housing element implementation progress. Staff works with developers to implement the Affordable Housing Program, which is integral to the approval process of new developments with 50 or more units (ten percent of the units must be affordable). CITY OF CHULA VISTA PAGE 55 OF 118 HOUSING ELEMENT 1999-2004 OBJECTIVE 8 The elimination of racial, age, religious, sexual, and economic bias and discrimination in the housing provision, and to ensure fair lending practices. -' I m__~plemen tin_g_Action s A. Continue Fair Housing Counseling Services and Referral Activities B. Conduct the Annual Fair Housing Assessment C. Require Developers of Housing Projects (20 units or more) to Submit Affirmative Fair Marketing Plans Responsible Agencies: Community Development Department Quantified Objectives: N/A Cumulative Results: The City helps fund the Fair Housing Council of San Diego. This organization responds to questions about landlord/tenant issues. In July 1995, Community Development Department staff and thc Fair Housing Council of San Diego compiled data for the Assessment of Impediments to Fair Housir~g Choice in the City of Chula Vista report. Additionally, the City contracts with the Fair Housing Council of San Diego to provide a fair housing education and counseling program through the City's Community Development Block Grant (CDBG) Program. The annual report for the 5-year Consolidated Plan includes information on fair housing and developers are required to submit affirmative marketing plans for their projects with more than 20 un/ts. OBJECTIVE 9 Reduction and/or removal to the greatest extent possible of identified constraints to the development, maintenance, and improvement of housing within the planning area. Implementing Actions A. Expedite the Processing of Affordable Housing Projects B. Designate an Affordable Housing Ombudsman C. Es!ablish specific procedures for evaluating requests for subsidies involving fees, land write downs, and other forms of City assistance. PAGE 56 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 D. Encourage demonstration or experimental housing projects which reduce building costs and increase affordability E. Consider the impacts to affordable housing which may result fi.om rezonings involved with the General Plan/Zoning Consistency Study. F. Continue to encourage the use of flexible development standards through the Planned Community (PC) Zone and Precise Plan (P) Modifying District, where such are clearly identified with increased availability of affordable housing. G. Designate staff and develop resources to assist developers in availing themselves of alternative and supplemental financial assistance. Responsible Agencies: Community Development Department and Planning and Building Department Quantified Objectives: N/A Cumulative Results: Chula Vista departments work cooperatively to expedite project review and approval. The City does not typically experience complaints about project processing delays. The City's Housing Divigion staff work cooperatively with those developers providing affordable housing within the community. They review all affordable housing project proposals and provide technical assistance when required. Should financial assistance be requested, the Coordinator reviews such requests and presents recommendations to the City Council and/or Agency. Housing Division staff serves as City liaison for affordable housing projects and coordinates with other City departments to resolve any issues that may arise. Om-ECTrv~ 10 To encourage the development of new housing, and the retrofitting of existing housing, with features to address environmental issues such as energy and water conservation and recycling. Implementing Actions A. Encourage energy and water conservation features and recycling storage areas in new housing in conjunction with the City's existing policy for the "Conservation of Energy and Water" within the City of Chula Vista. B. Continue to encourage the weatherization programs for low-income households currently sponsored by the MAAC project. CiTY OF ClIO'LA VISTA PAGE 57 OF 118 HOUSING ELEMENT 1999-2004 C. Continue to require the installation of dual-piping systems in new projects to accommodate the use of reclaimed water for landscaping and other applications as feasible. D. Continue to require the submission of a "water management plan" and "air quality -' improvement plan" for large development projects at the Sectional Planning Area (SPA) Plan stage or similar level of review. E. Title 24 Compliance Review - The Planning and Building Department will continue to perform residential Title 24 energy analysis as part of building plan check procedures. Responsible Agency: Planning and Building Department, and Community Development Department Quantified Objectives: N/A Cumulative Results: A consultant is currently employed by the City to develop a Water Conservation Plan. The City has also received an EPA Grant for $80,000 to create a program to assist and promote energy conservation as well as CO2 reduction. Another consultant is exploring the feasibility of greywater recycling within homes for use in yards. Om-ZCTIVE 11 To fully address specific housing issues as they affect our community and to enforce applicable laws and ordinances. Implementing Actions A. The City will Encourage a Balance of Housing to Jobs B. Investigate the Need or Appropriateness of a Housing Linkage Fee C. Protect Coastal Zone Housing - Implement the Housing Demolition Rules and the Ten Percent Affordable Housing Requirement D. Provide Relocation Assistance as Required by Law Responsible Agencies: Community Development Department and Planning and Building Department Quantified Objectives: N/A PAGE 58 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 Cumulative Results: As demonstrated in the section on needs~ the City has substantial land zoned for employment growth and works with private developers to integxate employment opportunities within Master Planned Communities. The City's Affordable Housing Program has effectively integrated low and moderate income homes into newly developing areas. From 1991-1999, no homes within the coastal zone were demolished and therefore, there were no replacement requirements. OBJECTIVE 12 To provide and maintain adequate public improvements, facilities, and services to support residential growth in a manner consistent with the Growth Management Element and Program. Implementing Action~ A. Five-Year Capital Improvement Program (CIP) - The City will continue to implement the on-going CIP program. B. Implement the 20-year Neighborhood Revitalization Program C. Continue to Require Public Facilities Financing Plans for All Master Planned Communities and Other Facility Financing Methods D. Continue Maintenance of Public Improvements and Facilities Responsible Agencies: Engineering and Public Works Department, Planning and Building Depathnent, and Community Development Department Quantified Objectives: N/A Cumulative Results: The City continued to update and implement its Capital Improvement Program (CI~). The vast majority of the funds must be used on specific kinds of improvements. For example, Transnet or Gas Tax Funds must go to specified types of transportation improvements. The City's CIP also includes the expenditure of development impact fees generated in conjunction with the public facilities financing plans. To date, the CIP expenditures have effectively enabled the City to invest in the infiastmcture needed to support housing growth. CrrY OF CHULA VISTA PAGE 59 OF 118 HOUSING ELEMENT 1999-2004 EVALUATION OF PROGRF,,~.~ TOWAROS MEETING COASTAL ZONE REQUIREMENf Section 65588 of the California Government Code requires that, in housing element updates, coastal jurisdictions document the number of low- and moderate-income units converted or -' demolished, and the number of replacement units provided. Section 65588 also requires that revisions of the housing element must include, for the coastal zone: A. Number of new units approved for constmctinn after January 1, 1982. B. Number of units for low- and moderate-income households required to be provided either within the coastal zone or within three miles of it. C. Number of units occupied by low- and moderate-income households and authorized to be demolished or converted since January 1, 1982. D. Number of units for low- and moderate-income households required either within thc coasta! zone or within three miles in order to replace those being demolished or converted. The coastal zone includes a portion of the Montgomery area that was annexed into the City in 1985. Information is not available for units either demolished or constructed in this area prior to 1985. The following information was obtained from City records: 1982-1999 A. New construction: 0 new units B. New Iow- and moderate-income housing: 0 approved C. Demolished/converted low- and moderate-income housing: 5 D. Replacement low/moderate-income housing: 40 Figure 2 shows the Coastal Zone in Chula Vista. PAGE 60 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 FIGURE 2: COASTAL ZONE I Cl'l'Y OF CHULA VISTA PAGE 61 OF 118 HOUSING 'ELEMENT 1999-2004 This page is intentionally blank. PAGE 62 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 EVALUATION OF PROGRESS TOWAROS SELF-CERTIFICATION REQU~MENT~,; State Legislation (AB 1715) creates the opportunity for jurisdictions within the San Diego region to self-certify their updated Housing Element. The specific criteria listed below must be met in order to self-certify the Housing Element in 1999. Information documenting how the City of Chula Vista complied with each criterion is also included. The Housing Element self-certification criteria as set forth in AB 1715 (Section 65585.1 of the Government Code) are: Criterion 1: The jurisdiction's adopted Housing Element or amendment substantially complies with the provisions of this article, including addressing the needs of all income levels. Chula Vista contracted with MacLeod Consulting Sen, ices who worked closely with City staff to update the City's Housing Element. This process will be complete when the Chula Vista City Council adopts the 1999-2004 Housing Element and passes a resolution self-certifying this updated Housing Element. The draft Housing Element addresses the needs of all income levels. Criterion 2: For the third Housing Element revision pursuant to Section 65588, the jurisdiction met its fair share of the regional housing needs for the second Housing Element revision cycle, as determined by SANDAG. Chula Vista complied with' this criterion by creating 1,796 qualifying housing opportunities, which far exceeds the assigned fair share goal of 1,058. Criterion 3: For subsequent housing element revisions, the jurisdiction has provided the maximum number of housing units/opportunities as determined pursuant to Section 65585.1(a) within the previous planning period. Chula Vista will attempt to self-certify its housing element due in 2004. To do this, the City will need to provide an additional 1,029 affordable housing opportunities as follows: 278 extremely Iow-income, · 329 very lowqncome, and 422 low-income housing oppommities. Criterion 4: The City or County provides a statement regarding how its adopted Housing Element or amendment addresses the dispersion of lower-income housing within its jurisdiction, documenting that additional affordable housing opportunities will be developed in areas where concentrations of lower-income households do not exist, taking into account the availability of necessary public facilities and infrastructure. It is a policy of the City of Chula Vista to ensure that lower-income housing opportunities are dispersed throughout the City. This commitment is also accomplished through the Affordable Housing Program which requires five pement of the units in projects with more than 50 units to be affordable to low-income households and five percent to moderate-income households. 'CilT OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 63 OF 118 Criterion 5: No local government actions or policies prevent the development of the identified sites or accommodation of the jurisdiction's share of the total regional housing need pursuant to Section 65584. The 1999-2004 Housing Element specifically provides adequate sites, removes governmental constraints, and promotes equal housing opportunities. PAGE 64 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 IV. HOUSING OPPORTUNITIES This section evaluates the potential residential development that could occur based on Chula -, Vista's General Plan and Zoning Ordinance. AVAILABILITY OF SUITABLE SITES Housing element law mandates that a city must show that it has adequate sites with required public services and facilities for a vadew of housing types for all income levels. In this section, adequate sites will be discussed in terms of the City's Regional Share Goals for 1999-2004 as established by SANDAG. Regional Share Goals According to state law, a local jurisdiction's housing needs must include their share of the projected needs for housing in the region (regional share). The San Diego Association of Govermnents~ (SANDAG) has identified Chula Vista's share of regional housing needs for 1999- 2004. The figures are contained in the Regional Housing Needs Statement adopted in 1999. Each jurisdiction must identify the sites (capacity) to meet their share of the region's housing needs. The regional share identifies the need for new housing units for each jurisdiction and distributes the projected housing need to all income groups: very low, low, moderate, and above moderate. Table IV !30 shows Chula Vista's regional share goal and the income distribution of the goal. I Chula Vista accounts for nearly 11 percent of the region's projected housing needs or 10,401 units. TAELE !V-ITABLE 30: REGIONAL SHARE - 1999 - 2004 CHULA VISTA ] Income Category ] Housing Goal Very Low IncOme (<50% Area Median Income) 1,889 Low Income (50-80% Area Median Income) 1,535 Moderate Income (80-120% Area Median Income) 2,388 Above Moderate Income 4,589 Total 10,401 Source: SANDAG CITY OF CHULA VISTA PAGE 65 OF 118 HOUSING ELEMENT 1999-2004 Residential Land Besides the existing housing suppl>,, another source of housing is the future housing potential expressed in vacant, residentialIy-designated land within the City. Most of the vacant land is located in eastern Chula Vista and will be developed under the "Planned Community (PC) Zone", which permits varied densities and the use of flexible development standards. Given the amount of developable vacant land within ri:the master planned projects in Eusastem Chula Vista (Figure 36_) and the land use designations otZthat land, there is sufficient vacant land to accommodate ilt~da-~6~q~-28,569 homes in a wide range of housing densities. Of these units, 41 percent will be high density multi-family (Medium High at 11 to 18 units/acre an--~ High at 18 to 27 units/acre). Another 11 percent will be in the 6 to 11 units/acre range which tyDically l~enerates patio homes/townhomes. Thc rcmainlng 48 percent are at densities for single-family. . homes (Low. at 0 to. 3 traits/acre and Low Medium at 3 to 6 unit,/acre). Tb.i~ ...... ~- .......,h~, ,, ..... ~), ........ ~ ~), .... m,,-~,;,,,, ),, ,),,, City Refer to Table 32IV 2. Figure 4 shows the annual change in the number of housing units by type (single family and multi-family) in Chula Vista in past years, and presents the current forecast through 2007. Thi~ figure illustrates a dramatic increase in the number of new dwelling units, particularly in the past two years, and substantial growth in the number of multi-family units over the past year. Thi~ high level of new housing production with a large multi-family component is forecast to contin~e over the time frame cited. Figure 5 shows housing permits in the City of Chula Vista in comparison to San Diego Count>, as a whole, and demonstrates the City's expanding role in meeting regional housing needs. The City of Chula Vista has a jobs/housing ratio that is significantly lower than that of the region. Alternatively stated, Chula Vista has more housing units per job than most other local urisdictions and the region as a whole, further underscoring the City's critical role in meeting regional housing needs. Table 31 and Figure 3 below illustrate this relationship. TABLE 31: HOUSING UNITS PER JOB year ChulaVista Region 1995 1.18 0.92 2005 1.05 0.81 20i0 1.10 0.85 2020 1.10 0.86 PAGE 66 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 - FIGURE 3: HOUSING UNITS PER JOB Source: San'Diego Association of Governments. September- October, 1999. "2020 Cities/County Forecast for the San Diego Region." INFO. CITY OF CHULA VISTA PAGE 67 OF 118 HOUSING ELEMENT 1999-2004 ] ~TABLE 32: RESIDENTIAL CONSTRUCTION CAPACITY EASTERN CHULA VISTA MASTER PLANNED PROJECTS Low Low Med Med Med High High Project 0-3 :3-6 6-11 11-18 18-27+ Totals du/ac du/ac du/ac du/ac du/ac Rancho Del Rey SPA I 17 17 SPA II 116 116 SPA III 246 154 400 Eastl.nl~o Greens 41 66 129 1,031 1,267 Trails 88 487 274 294 1,143 Woods & Vistas 746 255 260 506 1,767 Otay Ranch (Otay Valley Parcel) SPA 1 (Villages 1, 1 West, & 5) The Otay Ranch Company 1,597 704 1,402 3,703 McMilli_an 539 940 1,479 The Otay Ranch Co. (IWest) 772 214 772 Village 2 I, 133 586 1,719 Village 4 329 203 532 Village 6 990 1,242 2,232 Village 7 1,303 448 1,751 Village 8 1,021 436 1,457 Village 11 745 1,001 1,746 Village 12 (EUC) 2,500 2,500 Otay Ranch (Proctor Valley Parcel) Birch Patrick Estates 123 123 San Miguel Ranch 157 673 435 129 1,394 Vista Mother Miguel 43 43 Sunbow II 720 241 444 214 1,619 Rolling Hills Ranch (Salt Creek) 675 1,045 529 2,249 Bonita Meadows 250 250 ' Bella Lago 290 290 Totals 2,832 11,105 3,031 6,251 5,350 28,569 Sources: General Develonment s Report, August 16, 1999 PAGE 70 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 FIGURE 6: MASTER PLANNED COMMUNITIES ' i11111111 CiTY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 71 OF 118 Residential development capacity also exists in the older, Im ~vestem area of Chula Vista. In contrast to eastern Chula Vista, much of this capacity exists on u~derutilized parcels as discussed below, although there are zn!y about 84 acres of vacant land with a capacity of 519 units. Of these vacant lands, 90 percent are at densities for single-family homes (predonfinantlv Loxx"~ Medium at 3 to 6 units/acre). Total capacity City wide for new housing developed on vacant lands is approximately 29,08,q units, with 40 percent of the units or 11,738 units anticipated at the higher density ranges to accommodate high density multifamily housing. Approximately 14,305 units are anticipated at the Low and Low Medium density ranges to accommodate single family homes. The remaining 3,044 units are at the Medium density range of 6 to 11 un/ts/acre. This capacity for residential development on vacant lands is more than twice Chula Vista's regional share allocation of 10,401 units for the 1999-2004 housing cycle. The number of potential housing units can be further augmented through the development of underutilized properties. An underutilized residential area can be defined as an area that was developed at a lower residential density than could be accommodated with the existing public facilities, inPrastructure, and allowable density maximums (zoning). These underutilized residential areas are primarily located within western Chula Vista, where they were developed with single family residences or lower density multi family. Underutilized land has a capacity of another 1,097 units for a total of 1,616 units. Most of this capacity (1,109 potential units) is on land designated for high density development (18 to 27 du/acre). Long term residency and continuation of older single family homes as rental properties contributes to the underutilization of the property. In these older areas of the City, there are, many multifamily properties that are either owned by a family trust or by an absentee owner with no immediate plans for development. Historically, on average, the City has experienced residential construction levels of 25 units per year in western Chula Vista since 1980. TA.~nLE !V 3TABLE 33: 'RESIDENTIAL CONSTRUCTION CAPACITY WESTERN CHULA VISTA VACANT AND UNDERUTILIZED LAND Vacant Underutilized Total General Plan Designation Acres ] Potential Units Potential Units Potential Units Low (0-3 du/ac) 15.19 37 8 45 Low Med (3-6 du/ac) 60.41 331 111 442 Medium (6-11 du/ac) 3.15 13 0 13 Medium High (11-18 du/ac) 0 0 7 7 High (18-27 du/ac) 5.14 138 971 1,109 Total 83.89 519 1,097 1,616 PAGE 72 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 Density designations often have a relationship to the cost of housing or the feasibility of using gap financing to make units affordable. Table 34D.T 4 correlates the City's capacity to provide potential residential units on vacant and nnderuti--lized property (U.~2t Potential Units), DensitY and Regional Share by income level. _, TA-nLE !V ~.TABLE 34: REGIONAL SHARE AND UNIT POTENTIAL IN CHULA VISTA Units Needed Income LeVel Regional Share Appropriate Density Potential Units ~igh (:>~-18 to 27 5,7556,45 Very Low- and Low- Income 3,424 du_s/ac} 9 Moderate-Income 2,388 Medium High {I lt__~181 5?.056,25 dus/ac) 8 Medium (6tol l dus/ac) 3,044 Above Moderate-Income 4,589 ~-y.L. ow Medium (3 to 18,!4~.I 1, 6 dus/ac) 547 Low (0 to 3 dus/ac) 2,877 Total 10,401 ~ ~-~; '~'*,~- ~4~;~. ~ ~. ~ 3!,30430~ Non-Residential Land There are several non-residential zones within the City that allow for some form of housin!,, development, as identified in Table 21. These zones, namely, Administrative and Professional Office (C-O), Central Business (C-B), and Central Commercial (C-C) have the greatest potential for future residential development. The C-O zone allows for multifamily residential development. Both the C-B and C-C zones allow for multifamily residential development coniunction with commercial uses in a mixed-use setting. Residential development in thes, areas would further bolster the potential for accommodating new dwelling units in the Ci.ty Chula Vista. The Chula Vista City Council has also adopted a Resolution of Support for the San Dieg. Association of Governments (SANDAG) REGION2020 Growth Management Strategy and smart growth principles. In this resolution~ the City expressed its comm~nent~ through its ongoing General Plan Update and other related efforts, to evaluate and promote land distribution concepts and smart growth opportunities supportive of the regional growth management strateh%,. The City of Chula Vista is also prov/ding funding for and is actively participating in a joh,I .South Bay "Transit First" program being conducted with the Metropolitan Transit Development Board. This effort will produce a tr~sit plan and identify transit proiects in Chula Vista and th,. ~ou_th San D~area. The City~ General Plan_U_p_date will inte~orate smart._~rowth land use CITY OF CHI JLA VISTA PAGE 73 OF 118 HOUSING ELEMENT 1999z2004 distribution concepts and opportunities, where feasible, including higher residential densities and employment intensities and mixed use areas, with the network of transit stations and corfidoJs identified through the South Bay Transit First program. Availability of Phblic Services and Facilities Chu!a Vist2 w.~ 2dequate .,,,h~; ..... ;.-o~tr~,-;m; .... h~ ,,~ ..... '~ finanzing mech~-'.izms to ....... ,~,~;- :,,**~n~,;,.. ;, ,~,,.o, ........ ,~,~ ,h ...... '*h As previously noted in Section II, the City has been implementing and refining a comprehensive and successful growth management program since 1986. The program's main. purpose is to support development while maintaining the community's quality-of-life by ensuring approl~riate provision of eleven different publh; facilities and services as development occurs. Level-of-service Threshold Standards have bee,, established for each of the eleven facilities and services and are analyzed as part of th,. development review process. The City uses a number of different mechanisms to ensure funding to support required facilitie:~ and services including Development Impact Fee Programs (DIFs) for transportation and public facilities~ community facilities districts (CFDs), and development exactions. Larger new maste,, planned projects (mainly in the developing eastern Chula Vista area) are required to prepare a Public Facilities Financing Plan (PFFP) to identify facility and service needs in accordance with the development's proposed phasing~ and the funding mechanisms to ensure they will b, available when needed. In the older, built-up western area of the City, most of the backbon,' facilities and services necessary to support the infill and redevelopment capacities of adopted plans are largely in place today. In addition to PFFPs, and as a way of monitoring and evaluating citywide facility and service availability, the City's Growth Management Oversight Commission (GMOC) conducts a, annual compliance review for each of the eleven Threshold Standards. In the event that any deficiency or concern is identified, action oriented recommendations are made. The City alsu uses the annual GMOC process as a planning tool for the City's Capital Improvement Program. Opportunities for Energy Conservation The primary uses of energy in urban areas are for transportation lighting, water heating, and space heating/cooling. The high energy costs are an impetus to reduce or minimize the overall level of urban energy consumption. Title 24, Building Energy Standards for Residential Development, establishes energy budgets or maximum energy use levels. The standards of Title 24 supercede local regulations, and State requirements mandate Title 24 requirements though implementation by local jurisdictions. The City will continue strict enforcement of local and state energy regulations for new residential construction, and continue providing residents with information on energy efficiency. As previously described the City is also using consultant assistance to create a program to reduce energy consumption and achieve other conservation goals. PAGE 74 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 REDEVELOPMENT HOUSING OBLIGAT/ON.~ Legislative Framework State Redevelopment Law provides the mechanism whereby cities and counties within the State can, through adoption of an ordinance, establish a redevelopment agency. The agency's primary purpose is to provide the legal and financial mechanism necessary to address blighting conditions in the community through the formation of redevelopment project areas. State Redevelopment Law also requires the redevelopment agency to address housing issues for low- and moderate-income residents in the following ways: · Expend 20 percent of the tax increment revenue to increase and improve the supply of low- and moderate- income housing; · RePlace low- and moderate-income housing which is destroyed as a result of a redevelopment project (replacement housing obligation); and · Ensure that a portion of all housing constructed or substantially rehabilitated in a redevelopment project area be affordable to low- and moderate-income housings (inclusionary housing obligation). - Redevelopment in Chula .Vista The Chula Vista Redevelopment Agency was activated in 1974 with the adoption of the Bayfi'ont Redevelopment Area. Since its formation, the Agency has adopted five redevelopment plans in the City (as shown on Figure 4): · Bayfront (1974) · Town Centre I (1976) · Town Centre H (1978) · Otay Valley Road (1983) · Southwest (1990) 'l~'l'll' OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 75 OF 118 Redevelopment Housing Set-Aside Pursuant to State Law, the Redevelopment Agency has established a Redevelopment Housing Set-Aside Fund using 20 percent of the tax increment revenue. As part of the Agency's efforts to meet its unmet housing needs, these funds have been and will continue to be used to create affordable housing units. According to the Five-Year Redevelopment Implementation Plan for 2000-2005, the Agency estimates the following yearly tax increment to be deposited by the Agency by project area. TABLE 3~: LOW/MODERATE-HOUSING FUNDS AVAILABLE SEPTEMBER 1999 Low- and Moderate-Income 1999- 2001- 2002- 2003- Housing ~Fund, - 2000 2000-2001 2002 2003 2004 TOTAL Starting Balance of $4,942,300 Total Annual Deposits (20% TI deposits by project area) BFffCI 589,058 612,246 636,393 661,018 686,151 3,184,866 OTVR 232,339 239,309 246,488 253,883 261,499 1,233,518 · TCI 211,453 217,797 224,331 231,061 237,992 1,122,634 SW 173,623 178,832 184,197 189,723 195,415 921,790 Interest & Other Income 326,000 328,760 331,548 334,365 337,209 1,657,882 Total Revenue 1,532,473 1,576,943 1,622,957 1,670,050 1,718,266 8,120,690 The total revenues to be deposited over the five-year period are estimated at $8,120,700. The beginn/ng balance in the Iow- and moderate-income housing fund as of July 1, 1999 was approximately $4,942,300. Therefore, the estimated amount of tax increment housing set-aside projected to be available over the five-year period for the development and assistance of affordable housing projects is $13,063,000. Based on existing programs and pro-forma cost projections for new and rehabilitated units, up to 725 additional units, could be created through the leveraging of Redevelopment Housing Set- Aside Funds over the five-year period. Funds are allocated among newly constructed and rehabilitated units as follows: 700 new-housing units; and 25 substantially rehabilitated housing units. The Agency anticipates assisting 60 low-income homeowners each year with the minor rehabilitation of their homes through the Community Housing Improvement Program (CHIP). PAGE 76 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 T.A-~LE !V ~TABLE 36: ANNUAL HOUSING UNIT PRODUCTION REDEVELOPMENT SET-ASIDE FUNDS ] Price Restricted Housing Production 2000 2001 2002 2003 2004 Five Year Total Housing Units to be developed 140 140 140 140 140 700 Housing Units to be substantially rehabilitated 5 5 5 5 5 25 Total housing units to be price restricted (acquisition of price restriction covenants for existing housing) 145 145 145 145 145 725 Housing Units to be otherwise assisted by the Agency (non-restricted) 60 60 60 60 60 300 Replacement Requirements Section 33413(a) of the California Health and Safety Code requires that whenever units housing persons of Iow- and moderate-incomes are destroyed or removed fi.om the low- and moderate- income housing market as part ora redevelopment project, the Agency shall within four years of the destruction or removal of such housing, rehabilitate, develop or construct for rental or sale, to persons of low- and moderate-income, an equal number of replacement units. At least 75 percent of these replacement units must be made available at an affordable housing cost for the same income level as the household that was displaced. Since the inception of redevelopment in Chula Vista, the Agency has incurred an obligation to replace 157 units that were demolished as a result of redevelopment activities in the various project areas. To fulfill this obligation, the Agency provided financial assistance to several residential developments throughout the City, resulting in the construction of 258 very low- and low-income housing units. Of the 258 units, 192 are for very Iow-income households and 66 are for low-income households. CITY. OF CHULA VISTA PAGE 77 OF 118 HOUSING ELEMENT 1999-2004 FIGURE 7: REDEVELOPMENT PROJECT AREAS PAGE 78 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 Affordable Housing Production (Inclusionary) Requirements Section 33413Co) (1) and (2) of the California Health and Safety Code imposes inclusinnary requirements for affordable housing for all residential development in Redevelopment Project -' Areas, whether developed by the Agency or by private entities. For the project areas adopted on or after Sanua~y 1, 1976, the following restrictions apply: · At least 30 pement of all new or substantially rehabilitated housing units developed by a redevelopment agency must be affordable to persons of low- and moderate-income. Not less than 50 percent of those units (15 pement of the total) must be available to very Iow- income persons. · For units developed by other public or private emities, at least 15 percent of the units must be affordable to low- and moderate-income persons; not less than 40 percent of these units must be made affordable to very low-income persons. · Affordable units created outside of the project areas may be counted toward this requirement on a two for one basis. Agency Assisted/Price Restricted Housing for the Next Five Years Based on low/moderate-housing funds available, it is anticipated that 700 units will be developed or substantially rehabilitated over the next five years. The following projects are anticipated to be developed within the next five years. The Agency will consider providing financial assistance to these projects. Of these units, it is estimated that 117 units will be developed/rehabilitated within the redevelopment project areas. Trolley Trestle - The Agency approved financial assistance in FY 1998-99 to a local non-profit organization for the construction of this project. Trolley Trestle, located within the Southwest Redevelopment area, is an 11-unit housing development for those extremely low-income youths completing the San Diego County Foster Care Program. It is anticipated that construction will be completed by December 2000. Yilla Serena - The Agency provided assistance in FY 1998-99 to this 132-unit Iow-income senior housing development. It is anticipated that construction will be completed in Summer 2000. Rolling Hills Ranch - The developer has proposed construction of 32 low-income family units and 116 low-income senior units. EastLake Greens - The developer has proposed construction of 130 for sale townhomes for low- income homebuyers. Crl'¥ OF CHOLA VISTA PAGE 79 OF 118 HOUSING ELEMENT 1999-2004 Otay Ranch -The develope~- has an obligation to develop I0 percent of the units within this master planned community for both low-income and moderate-income households. At this point in time, the required nUmber of affordable units is estimated to be 232 units. Pear Tree Apts - The Agency approved financial assistance in FY 1999-2000 to acquire and substantially rehabilitate this l lg-unit apartment project. All units are proposed to be affordable to very low and low-income households. It is anticipated that construction will be completed by Spring 2001. Main Plaza - The Agency has approved a mixed-use development of 106 low-income affordable units with 15,000 square -feet of commercial use. This project is located within the Southwest Redevelopment area. It is anticipated that the development of these projects within the next five years will create an additional surplus of low- and moderate-income units for the Agency. PAGE 80 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 V. GOALS AND POLICIES This section of the Housing Element contains goals and policies the City will implement to -' address a number of important housing-related issues. The primary goal of the City is to ensure that decent, safe housing is available at an affordable cost. The priority remains the provision of housing for families, particularly large families, of all income levels. Table 37V ! is a summary listing of the objectives by Goals, Policies, and Programs: -- ~[II~E--V-4TABLE 3?: ItOUSING OB3ECTIVES BY GOALS~ POLICIES~ AND PROGRAMS SUMMARY Policies and Programs [ Five Year Objective 'Goal 1 - Conserve Existing Affordable Housing Opportunities ].1 Preset_ration of Assisted Housing At-Risk of Converting to Market Rate 41 low-income units 1.2 Condominium Conversions Monitor 1.3 Single Family and Mobilehome * 250 CHIP loans/grants to very low- and low- Rehabilitation income homeowners and mobilehome owners. · Minor repair and clean up of 500 homes and mobile homes. i.4 Rehabilitate Deteriorating and Substandard Rental Housing 120 very low- and low-income rental units "1.5 Preservation of Mobilehome Park Living Case by Case Goal 2 - Maintain aud Enhance the Quality of Residential Neighborhoods in Chula Vista 2.1 Reinvest in the City's Well-established I i Target two residential neighborhoods for a Neighborhoods. clean up/fix up campaign as well as a program to promote community pride. Repair/rehabilitate 25 homes through Christmas in October. 'Goal 3 - Ensure That an Adeq.~_e and Diverse Housing Supply Is Available to Meet the City's Existing and Future Needs. ~.1 Affordable Housing Program New construction of 590 units for low-income households, of which 130 will be for sale units as also referenced under Program 4.1, and 470 units for moderate-income 3.2 Protection of Coastal Housing Case by Case 3.3 Provide Inceiitivcs for Low Income . Adoption of a density bonus ordinance. Housing Construction * Evaluate on a case by case basis acquisition of property and land write downs. · Pursue affm-dable housing funding sources. · I0 Iow income density bonus units CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 81 OF 118 Policies and Programs Five Year Objective 3.4 Pursue Housing Opportunities for Lower- · Assist 350 low~income persons through a Income Households shared housing program. · Work with the County Housing Authority to -' compete for rental assistance programs. · Work with social services' providers to identify lower-income elderly residents and provide housing assistance. · Adopt a second dwelling unit ordinance. Goal 4 - Increase Home Ownership Opportunities for Low- and Moderate-Income Households 4.1 Encourage the Conslruction of a Variety of [ Case by Case Housing Types 4.2 Help Low Income Households Purchase A · Assist 130 first-time homcbuyers. Home * Provide 25 Mortgage Credit Certificates to low- and moderate-income households. Goal 5 - Enable Homeless Individuals and Families to Find Permanent Housing 5.1 Participate in Regional Efforts to Address Continue to participate in regional efforts to Homeless Needs address needs of the homeless, including the Regional Task Force for the Homeless, local FEMA Board, Regional Continuum of Care Council, and County of San Diego Hotel/Motel Voucher Program. 5.2 Facilitate Local Facilities that Respond to * Provide technical assistance and conside: Homeless Needs financial assistance to organizations seeking to provide or expand facilities and services within Chula Vista. · 10 transitional housing units Goal 6 - Encourage Energy and Waste Conservation as an Integral Part of Homes 6.1 ~stitute Conservation as Part of New On-going Uonstruction 6.2 Promote Conservation in Existing Homes Change CHIP Guidelines Goal 7 - Promote Equal Opportunity for All Residents to Reside in Housing of Their Choice 7.1 Fair Housing Practices I Fair housing assistance to 150 persons Goal 8 - Reduction and/or Removal to the Greatest Extent Possible of Identified Constraints to the Development, Maintenance, and Improvement of Housing. 8.1 Streamline Development Processing [ Monitor development processing for streamlining opportunities. PAGE 82 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 - HOUSING GOALS~ OBJECTIVES~ POLICIE~S~ AND PROGRAMS Goal 1 - Conserve Existing Affordable Housing Opportunities 1.1 Preservation of Assisted Housing at Risk of Converting to Market Five Year Objective: 41 units ofat-risk low-incomehousing Funding Source: Community Development Block Grant (CDBG), HOME, Redevelopment LowfModerate-Housing Funds, and private sector programs Target Years: 2000 1.1.1 Preservation of Conversion Of Density Bonus Units The Community Development deparmaent shall work with the property owner of the Meadows and Eucalyptus Parkview projects to ensure the continued affordability of the 32 and nine low-income units respectively. As identified previously in the Needs Ass.essment-At Risk Units, the affordability restrictions for the Meadows are scheduled to expire in the year 2000. This is the only project in Chula Vista at risk of converting to market-rate housing during 1999-2004. 1.1.2 Tenant Education of Rights and Conversion Procedures The California Legislature passed AB 1701 in 1998, requiring property owners give a nine-month notice of their intent to opt out of low-income housing use restrictions. The Community Development department shall work with tenants of at-risk units regarding tenant rights, conversion procedures, and Seetio~ 8 availability/priority. 1.2 Condominium Conversions Five Year Objective: On-going Monitoring/Regulation Funding Source: CDBG, HOME, Redevelopment Low/Moderate-Housing Funds, and private sector programs. Target Years: 1999-2004 1.2.1 Regulation of Condominium or Stock Cooperative Conversions The Planning and Building department shall continue to regulate residential condominium and stock cooperative conversions as specified in the Chula Vista Municipal Code, Title 15, Chapter 15.56 in order to protect existing tenants and promote the orderly growth and amenity of Chula Vista. t2rl'Y OF CHULA VISTA PAGE 83 OF 118 HOUSING ELEMENT 1999-2004 1.3 Single-family and Mobilehome Rehabilitation, with Priority for Those Homeowners of Very Low- Income, Special Needs and/or Senior Households. Five Year Objective: 250 CHIP loans/grants to low-income homeowners and -, mobilehome owners. Minor repair and clean-up of 500 homes and mobilehomes. Funding Source: CDBG, HOME, Redevelopment Low/Moderate-Housing Funds, and private sector programs. Target Years: 1999-2004 1.3.1 Rehabilitation Assistance The Community Development department shall provide rehabilitation assistance, through loans and grants, to lower-income owner occupants to preserve and rehabilitate deteriorating homes. Assistance will be targeted to homeowners residing in blighted areas of the City and priority will be given to those single- family and mobilehome owners of very Iow-income, special needs and/or senior households. The Community Housing Improvement Program (CHIP) provides favorable loans to low-income owners and also provides grants for minor repairs. 1.3.2 Caring Neighbors Program This voluntary program, is utilized occasionally by Code Enfomement to perform minor rehabilitation work for elderly and disabled homeowners. This program will depend primarily on the availability of fimding fi-om CDBG funds, which is a competitive grant provided on an annual basis. 1.3.3 Home Modification and Repair - For Senior Citizens The Community Development department shall encourage elderly persons to seek home modification and repair programs that will allow elderly persons to remain in their home and help to prevent injuries. Weatherization Programs are available through the local Welfare or Energy Deparhnent (Low Income Home Energy Assistance Program and the Weatherization Assistance Program). 1.3.4 Reverse Mortgage Program A Reverse Annuity Mortgage Program, available through private lending institutions, can help elderly homeowners gain access to their home equity. Under this program, the Federal government guarantees the loans to senior citizen homeowners which allows them to draw down a monthly stipend. PAGE 84 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 1.4 Rehabilitate Deteriorating and Substandard Rental Housing Five Year Objective: 25 very loW-income and 95 low-income rental units Funding Source: CDBG, HOME, Redevelopment Low/Moderate-Housing Funds, and private sector programs. Target Years: 1999-2004 1.4.1 Rental Housing Acquisition and Rehabilitation · The Community Development depa~hnent shall make local funds available for both non-profit and for-profit developers to acquire rental housing that is substandard, deteriorating, or in danger of being demolished. A minimum of twenty percent of the units, once rehabilitated, will be set-aside for very low- and low-income households at affordable rentst3 for a minimum of 55 years, unless _ otherwise dictated by a State or Federal Law. 1.4.2 Housing Inspection The Planning and Building department shall continue to employ Code Enforcement staff to systematically inspect rental housing complexes of three or _ more units and report violations of current Health and Safety Codes. Where necessary work is fairly extensive, referrals to the City's Community Development Housing Division are made. 1.5 Preservation of Mobilehome Park Living Five Year Objective: Case by case Funding Source: CDBG, HOME, Redevelopment Low/Moderate-Housing Funds, ' and private sector programs. Target Years: 1999-2004 taln such instances that affordable rents are not defined by the applicable laws or regulations, affordable rents (incinding a utility allowance) for low income households shall not exceed the -lesser of 1 ) 30 percent of 60 percent of the Area Median Income as published from time to time by the U.S. Department of Housing and Urban Development (HUD), adjusted for household size; or 2) 10 percent below market rents for comparable units within the project or surrounding properties. For vei'y low /ncome households, affordable rents (including a utility allowance) shall not exceed 30 percent orS0 percent of the Area Median Income as published from time to time by the U.S. Department of HUD, adjusted for household size; or 2) 10 percent below market rents for comparable units within the project or sun'ounding properties CITY OF t2HLILA VISTA PAGE 85 OF 118 HOUSING ELEMENT 1999-2004 1.5.1 Community Housing Improvement Program The Community Development department shall continue to provide grants and/or loans to low-income mobilehome owners for the rehabilitation of their -' mobilehome through the Community Housing Improvement Program (CHIP). 1.5.2 Mobilehome Space Rent Review Ordinance The Community Development department shall monitor and enforce the City's Mobilehome Space Rent Review Ordinance to protect the rights of mobilehome residents in preserving this affordable housing altemative. 1.5.3 Mobilehome Park Conversion Ordinance The Community Development department shall monitor and enforce the City's Mobilehome/Trailer Park Conversion Ordinance to protect the fights of mobilehome residents. 1.5.4 ~ Resident Ownership of Mobilehome Parks The Community Development department shall assist mobilehome park residents to purciaase their parks and convert to resident ownership by assisting with the application for other funding sources such as the State Mobilehome Assistance Program. Financial assistance provided by the City, Agency, State, or other funding sources may be limited to income eligible residents and require affordable housing costs. Goal 2 ~ Maintain and Enhance the Quality of Residential Neighborhoods in Chnla Vista 2.1 Reinvest in the City's Well-established Neighborhoods Five Year Objective: Identify and target two residential neighborhoods for a clean- up/fix-up campaign and initiate a program to promote community pride. Repair/rehabilitate 25 homes through Christmas in October. Funding Source: CDBG, HOME, Redevelopment Low/Moderate-Housing Funds, and private sector programs. Target Years: 1999-2004 2.1.1 Neighborhood Revitalization Programs The Community Development department shall continue to implement a pro-active program of neighborhood inspections to improve conditions and appearance primarily through the "Neighborhood Revitalization Program" (NRP). This on-going program targets specific Iow- and moderate-income neighborhoods exhibiting high volumes of citizen complaints.. PAGE 86 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 _ The programs also prioritize needs for housing and infrastructure such as paving, curbs, gutters, sidewalks, and drainage facilities, and to develop a schedule to coordinate provision of improvements with available resources and the City's Capital Improvement Program (CIP) schedule, and the Community Housing Improvement Program (CHIP). The Community Development Housing Division will cooperate and assist locally based citizen groups to develop a program to improve conditions and appearance primarily through clean-up/fix-up campaigns and initiate a program to promote community pride for targeted neighborhoods. 2.1.2 Monitoring o f Neighborhood Conditions The Planning and Building department shall continue to monitor neighborhood conditions for adherence to minimum standards of habitability, and appearance that lead to neighborhood deterioration by responding to service requests from concerned citizens. Goal 3 - Ensure that an Adequate and Diverse Housing Supply is Available to Meet the City's Existing and Future Needs. 3.1 Affordable Housing Program - A continuing program established in 1981. Five Year Objective:. New construction of 590 units for lower-income households, of which 130 will be for sale units as also referenced under Program 4.1, and 470 units for moderate-income households. Funding Source: CDBG, HOME, Redevelopment Low/Moderate-Housing Funds, and private sector programs. Target Years: 1999-2004 3.1.1 Balanced Communities The Community Development department shall continue to achieve a balanced residential community through integration of low-income housing throughout the City, and the adequate dispersal of such housing to preclude establishn~ent of specific low-income enclaves. Assure that programs create housing for large families and accommodate the needs of seniors and disabled persons. 3.1.2 Affordable Housing Requirement - Administered by Community Development A minimum of ten percent of each residential development of 50 or more units must be restricted for occupancy by and affordable to low- and moderate-income households, with at least one half of those units (five percent of project total units) for Iow-income households. CITY OF CHULA VISTA PAGE 87 OF 118 HOUSING ELEMENT 1999-2004 In order to guarantee provision of these units, the City requires the developer to formulate, review with staff, and have adopted a specific program and agreement for the project delineating how and when the required affordable units will be provided, including but not limited to location of the affordable units, intended subsidies, income/rent restrictions, tenure of affordability, schedule for production of the affordable units, and methods to verify compliance. Formulation of project-level programs and agreements is handled in a tiered fashion, starting at the General Development Plan (GDP) stage, or similar level of review, and progressing in specificity and detail through the planning process. A final agreement is required prior to recordation of the final map or final project approval where land subdivision is not applicable. This requirement shall further be administered in accordance with the following: .. A) A "residential development" shall be considered as the entire residential development proposal as set forth in the development application, whether or not the subdivision of land is involved, or the units are part of a mixed-use project. In the case of master planned communities, the "residential development" shall be that development encompassed by the Specific Plan, Precise Plan, or General Development Plan/Sectional Planning Area Plan(s). B) The location of affordable housing developments for lower-income households shall take into consideration proximity to existing or proposed mass transportation routes, and the availability of community services and facilities such as shopping, medical, child care, recreation areas, and schools. C) Developers shall ensure the timely development of affordable housing for lower-income households. Affordable housing oppommities should be provided in the earliest development phase possible taking into consideration the availability of facilities, growth management standards, the general development plan, financing, and merchant builder involvement. D) A master planned community should satisfy its lower-income affordable housing obligation through the construction of affordable housing units within the master planned community itself. Should the City determine that the unique conditions of a development provides an unreasonable hardship for the new construction of units within the project, the City, at the sole discretion of the City Council, may consider methods other than actual developer-built in-project unit prOduction as a means to achieving affordable housing opportunity. These alternative methods will be considered only when the City, at its discretion, has determined that such PAGE 88 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 alternatives support specific Housing Element policies and goals, assists the City in complying with the California Government Code as it relates to the planning for and provision of affordable housing and will not be significantly detrimental to achieving balanced residential communities, and will provide at a minimum the equivalent number of required affordable units and comparable rent and occupancy restrictions. Such determination shall be based on findings that the, new construction of units within the project would present an unreasonable hardship in light of such factors as, but not limited to, project size, site constraints, market competition, difficulty in integrating due to significant price and product disparity, developer capability, and financial subsidies available. Also to be considered are whether the alternative options offer preferred product type, affordability in excess of the requirements of the City's Affordable Housing Program, does not result in an undue concentration of housing for lower income households, location advantages such as proximity to jobs, schools, transportation and services, diminished impact on other existing developments, and capacity of development entity to deliver the project. Consideration of aitemative methods shall be made according to the following order of priority: 1) .Land Set-Asides: Where unit construction by the developer presents an unreasonable hardship, the City may consider the donation of a building site and if necessary a financial contribution adequate to provide, at a minimum, the required units as satisfying the developer's affordable housing obligation if it is determined that such contribution will be effectual in furthering the goals and policies of the Housing Element, is advantageous to the City in creating and preserving affordable housing to comply with the California Government Code as it relates to the planning for and provision of affordable housing, will not result in an undue concentration of affordable units for lower income households, and will not be significantly detrimental to the achieving a balance of housing opportunities for all economic groups provided within the residential development (required findings). The land and financial contribution, if necessary, must have a value no less than the net cost of providing the affordable units on-site and both sufficient in acreage and allowable density so as to make production of the required units feasible. Where the required affordable units are located within a master plan area, the first priority for the location of the site is within the same Sectional Planning Area, followed by other Sectional Planning Areas of the same General Development Plan. If the developer can feasibly provide a land set-aside, the City will not approve any other alternative method of compliance with the Affordable Housing Program. CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 89 OF 118 2) Off-site Location: Where provision of land within the project has been duly proven to present an unreasonable hardship, the City may consider developer construction, either individually or in partnership, of an affordable housing project at an off-site location if it is determined that such off-site project will meet those same findings listed above under land set-asides. The off-site project shall satisfy, at a minimum, the original requirements placed on the developer and provides a value no less than the net cost of providing the affordable units on-site. Altematives to providing affordable housing within the project may include, but are not limited to, acquisition and rehabilitation of affordable units, conversion of existing market units to affordable units, construction of second dwelling units, construction of special needs housing projects or programs (shelters, transitional housing, etc.). Where the required affordable units are located within a master plan area, the first priority for the location of alternative affordable housing opportunities is within the same Sectional Planning Area, followed by other Sectional Planning Areas of the same General Development Plan. If the developer can feasibly build or provide the affordable units at an off-site location, the City will not approve any other alternative method of compliance with the Affordable Housing Program. 3) In-Lieu Contributions: Where construction, the provision of land, and off-site projects have been duly proven to present an unreasonable hardship, then the City, at the sole discretion of the City Council, may consider the acceptance of in-lieu conh-ibutions to be placed in a trust fund and used to provide assistance to other identified affordable housing production or contributions to a special needs housing project or program. The level of contribution shall be evaluated to ensure its adequacy in relation to achieving assistance opportunities commensurate to the level of the original project requirement. The City shall formulate and adopt, by March 2000, Implementation Guidelines for the Affordable Housing Program to maximize the production of affordable housing, ensure an adequately balanced community, and facilitate the evaluation of financial assistance. These guidelines will outline overall Program requirements including, but not limited to, location of the affordable units, intended subsidies, income/rent restrictions, tenure of affordability, schedule for production of the affordable units, and methods to verify compliance. The guidelines will also establish allowable development incentives and criteria for their application, and define conditions under which alternative methods of compliance with the Program may be considered. PAGE 90 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 _ ~. E) Unit mix by bedroom count shall reflect the appropriate community need and shall be comparable to the unit mix by bedroom count of the market ~'-'~' "~te units in the'residential development, but should provide a minimum of 20 percent of the units with three or more bedrooms to meet the needs of ~ large families. 3.2 Protection of Coastal Housing Five ~.~.~.'ObJec!ive: Casebycase FUnding Source: CDBG, HOME, Redevelopment Low'Moderate- Housing Funds, and private sector programs. Target Years: 1999-2004 3.2;! COastal Development Monitoring The Community'Development department shall comply with State Law and local ordinances regarding the monitoring and reporting of affordable housing units and . the new c°nstmction of replacement affordable housing within the Coastal Zone. 3.2.2]~p!acement Housing M/hera conversion or demolition of housing units in the Coastal Zone occupied by lo~.w- 9r moderate-income households is proposed, such activity will be undertaken by the Community Development department in accordance with State LaTM and the City's adopted Coastal Plan. 3.3 Provide Incentives for Low Income Housing Construction Five Year ~b_Jective: Adoption of a density bonus ordinance. Construction of 10 low- income density bonus units. Evaluate waiving or modifying certain development standards. Evaluate on a case by case basis _ . acquisition of property and land write downs. Funding.,.S0u[.ce: CDBG, HOME, Redgvelopment Low/Moderate-Housing Funds, and private sector programs. Target Years: 1999-2004 CiTY OF CHULA VISTA HOUSING ELE~.: N~'/.999.2004 PAGE 91 OF 118 3.3.1 Density Bonus By March 2000, the City, with direction fi.om the Planning and Building department, shall adopt a density bonus ordinance consistent with State Law -' requirements. The density bonus ordinance is an appropriate incentive to produce lower-income affordable units and the City will encourage its use where appropriate. 3.3.2 Development Standards The Community Development department, with direction fi.om the Planning and Building department, will evaluate on a ease by case basis as requested by developers the possibility of waiving or modifying of certain development standards, such as, but not limited to, parking standards, or the revision of certain Municipal Code provisions to encourage the development of low- and moderate- income housing. The City may provide a reduction in site development standards _. or a modification of zoning code or architectural design requirements, for those eligible affordable housing projects requesting such reductions or modifications consistent with Government Code Section 65925 (h). These recommendations will be reviewed based upon a goal to reduce costs associated with overly strict or outdated standards. Although standards may be modified, the City will ensure that the projects wilt retain aesthetic and design criteria acceptable to the City. 3.3.3 Land Assemblage and Write Downs The City can utilize CDBG, HOME, and Redevelopment monies to write down the cost of land for the development of low- and moderate-income housing by private developers. As part of the land write down program, the Community Development department may also assist in acquiring and assembling property and subsidizing on-site .and off-site improvements. 3.3.4 Pursue Affordable Housing Funding Sources The Community Development department shall examine ways to directly secure and/or leverage Federal or State funding, or encourage other agencies to do the same. The intent is to actively monitor the funds available through different and evolving housing programs to facilitate participation of eligible for-profit or non- profit corporations. 3.4 Pursue Housing Opportunities for Lower Income Households, with Attention to Those Who Have Special Needs Five Year Objective: Assist 350 very low- and low-income persons through the Shared Housing Program. Work with the County Housing Authority to compete for rental assistance programs. Work with social service providers to identify lower- income elderly or disabled residents PAGE 92 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 and provide housing assistance. Adopt a second dwelling unit ordinance. Construction of 100 housing units within a mixed-use development. Funding Source: CDBG, HOME, Redevelopment Low/Moderate-Housing Funds, and private sector programs. Target Years: 1999-2004 3.4.1 Section 8 Rental Assistance The Section 8 Rental Assistance Program extends rental subsidies to very low- income (50 percent of AMI) households who spend more than 30 percent of their income on rent, including mobilehome park space rents. Chula Vista contracts with the San Diego County Housing Authority to administer the Section 8 Rental Assistance Certificate/Voucher Program. The Community Development . deparhnent shall continue to participate in the San Diego County Housing Authority Section 8 Rental Assistance Certificate/Voucher Program. At a minimum, the City. will strive to maintain the current level of assistance to very Iow-income households. 3.4.2 Shared Housing The Community Development department will consider continuing to fund a Shared Housing program operated by social service agencies based in the South - Bay which facilitate matches between households with extra room and individuals seeking low-cost housing. Most matches involve senior citizens or disabled citizens. 3.4.3 Second Dwelling Units Second dwelling units provide additional low-cost housing oppommities to residents, particularly for seniors and students. By March 2000, the City, with direction from the Planning and Building department, shall adopt an ordinance which permits second dwelling units under certain conditions. 3.4.4 Special Needs of the Elderly, Disabled, and Single-Parent Households The Cormmunity Development department shall encourage the development of housing suitable for the elderly and disabled persons as well as single-parent households to be in close proximity to public transportation and community services. This includes easy accessibility to special services such as day care, elder care, medical services, or recreation. CITY OF ~dHULA VISTA PAGE 93 OF 118 HOUSING ELEMENT 1999-2004 3.4.5 Mixed Use Developments The Planning and Building Department shall review existing zoning and land use policies to remove impediments, if appropriate, and encourage mixed-use developments. 3.4.6 City/Agency Assisted Developments The Community Development Department will continue to work with private for profit and particularly non-profit residential developers to use local filnd~ fi.om CDBG. HOME Program, Redevelopment Low/Moderate Income Housing Set aside funds and other City originated funds and leverage them against State. Federal and private low interest funds to create housing opportunities for extremely low, very low and low income households_ 3.4.7 Article XXXIV On April I l, 1978 under Proposition C, the voters of Chula Vista authorized the development, construction, or acquisition of 400 units of "low rent housing" by the Agency. Of the 400 allo~able credits, Chula Vista has utilized 293 units and has a balance of 107 units remaining. The Community Development Department will continue to assess the applicability of Article XXXIV of the California Constin~tion to certain housing developments where the City and/or Redevelopment Agency of the City are considering financial assistance or other incentives to assist in the development and construction of such housing. Should the City/Agency identify that Article XXXIV significantly impacts its ability to assist in the provision of affordable housing, the City would evaluate the possibility of initiating a referendum to obtain more authority for the development, construction, or acquisition of "low rent housing" by the City/Agency. Goal 4 - Increase of Home Ownership Opportunities for Low- and Moderate-income Households 4.1 Encourage the Construction of a Variety of Housing Types Five Year Objective: Assist 130 low-income first-time buyers in fulfillment of the City's Affordable Housing Program. Provide 25 Mortgage Credit Certificates to low- and moderate-income households. Funding Source: CDBG, HOME, Redevelopment Low/Moderate-HouSing Funds, and private sector programs. Target Years: 199%2004 PAGE 94 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 4.1.1 Affordable Housing Program The Community Development department shall continue to work closely with developers to encourage that a portion of the low/moderate-income homing required under the City's Affordable Housing Program is built for home- ownership. 4.2 Assist Low-Income Households Purchase A Home 4.2.1 First-Time Homebuyer Programs .Financial participation by the City, Redevelopment Agency, or Housing Authority m a first-time homebuyer program will target those families and individuals currently living and/or working in Chula Vista. .The Community Development department shall explore setting aside a portion of its Redevelopment Low/Moderate Housing Funds or HOME Fund to assist Iow- and moderate-income families to purchase a home. Funds may be used for closing costs, down payment, and/or below-market interest rate. The City would expect repayment of the loans through its equity share participation to allow the City not only to recoup the loan but also to build the fund for future program activity. I£ using Redevelopment Low/lVlodemte-Income Housing funds, assistance could be provided to potential homebuyers of Agency-assisted projects or for the purchase of homes within the Redevelopment area. A HOME-funded program would be available to provide assistance to low income homebuyers for the purchase of a home within Chula Vista. 4.2.2 Homebuyer Information The Community Development department shall continue to make information available to the public on the home buying process and home mortgage lending including Federal, State and local programs. 4.2.3 Homeowner Education and Counseling The Community Development department shall encourage developers, lenders, and social service organizations to provide educational programs and materials for homeowners and potential homeowners on home maintenance, improvement, and financial management. The purpose of the educational programs will be to help, especially first-time homeowners, prepare for the purchase of a home and to understand the importance of maintenance, equity and appreciation, and to budget properly to accomplish such and avoid losing their homes. CITY OF CHULA VISTA PAGE 95 OF 118 HOUSING ELEMENT 1999-2004 4.2.4 Mortgage Credit Certificate The City is a participant in a coalition consisting of the County of San Diego and many other cities in providing Mortgage Credit Certificates (MCC) to qualified first-time homebuyers. The coalition has hired a consultant to administer and implement the program on its behalf and the City contributes to the administration costs of the program. First-time homebuyers are referred by the Community Development department to the consultant. 4.2.5 HUD Homes The .Community Development department shall assist non-profit organizations to acqmre and rehabilitate homes offered for sale through the U.S. Department of HUD with the expectation that these homes will then be sold to low-income first- time homebuyers. 4.2.6 ~ Single-Family Residential Mortgage Revenue Bonds Single-Family Residential Mortgage Revenue Bonds can be issued by the City (through the Community Development depastment), County, or non-profit organizations to provide mortgage loans to encourage developers to provide for- sale housing which is affordable to first-time lower-income homebuyers whose !ncomes do not exceed maximum Federal limits. Buyers must also intend to live in their homes as their principal residence. Mortgage loans offered under the bond program generally have lower interest rates than conventional loans. Loans are available for attached and detached single-family residences. 4.2.7 Sweat-Equity Sweat-equity projects reduce the production or rehabilitation costs of housing as the homeowners provide some or all of the labor required to construct/rehabilitate the homes. The Community Development department shall explore financial assistance for fi low-income sweat-equity project. PAGE 96 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 _ Goal 5 - Enable Homeless Individuals and Families to Find Permanent Housing 5.1 Participate in Regional Efforts to Address Homeless Need~ Five Year Objective: Continue to participate in regional efforts to address needs of the homeless, including the Regional Task Force for the Homeless, local FEMA Board, Regional Continuum of Care Council, and County of San Diego HotelfMotel Voucher Program. Construction of 10 transitional housing units. Funding Source: CDBG, Redevelopment LowfM0derate-Housing Funds, FEMA, other federal programs, and private sector programs. Target Years: 1999-2004 5.1.1 Support Existing Regional Services for the Homeless Chula Vista encourages the coordinated efforts to address homeless issues in the area through a continuum of care model. Two non-profit agencies in the South Bay Region (South Bay Community Services [SBCS] and MAAC Project) provide assistance to the homeless or near homeless population. Both SBCS and MAAC Project distribute shelter vouchers to needy families, which allows them to stay at designated local motels. Assistance is provided through the County of San Diego and FEMA. During the winter months, the Interfaith Shelter Network provides shelter for up to 12 people at local participating churches. SBCS also operates several transitional housing programs as described in Section 2 of this Housing Element. The Community Development department shall continue to encourage these efforts to provide case management services, emergency shelters, transitional housing, and will utilize CDBG funding, as appropriate, to aid in these efforts. 5.1.2 Participate in a Regional Approach to Address Homelessness The Community Development department shall continue to participate in the Regional Continuum of Care Council for San Diego County and the County of San Diego's application for funding through the Federal Supportive Housing Program for the development of new housing facilities for the homeless and the continuing funding of existing facilities. The City will continue its representation on thc FEMA Board and the Regional Task Force on Homelessness. ¢1'1'¥ OF CHULA VISTA PAGE 97 OF 118 HOUSING ELEMENT 1999-2004 5.2 Facilitate Local Facilities that Respond to Homeless Needs Five Year Objective: Provide technical assistance and consider financial assistance to organizations seeking to provide or expand facilities and services within Chula Vista. Funding Source: CDBG, Redevelopment Low/Moderate-Housing Funds, FEMA, other Federal programs, and private sector programs. Target Years: 1999-2004 5.2.1 Evaluate and Identify Facilities and Services The Community Development department shall evaluate support facilities and service needs of the homeless and the near homeless and identify appropriate agencies and resources. 5.2.2 Identify Non-profit Providers to Operate Emergency Shelter Programs Non-profit providers are hesitant to undertake emergency shelter and transitional housing programs because of the difficulty in securing adequate operational funds. In addition to room and board, most shelter programs provide some type of case management and other social services. Providers rely heavily on private donations and volunteers to fill funding gaps. The Community Development department can directly assist shelter providers with CDBG or Redevelopment Housing funds, and encourage them to apply for available Federal 'and State Funding (McKinney, E.S.P. etc). 5.2.3 Facilitate Shelters and Transitional Housing Programs The City will continue to make an effort to meet the needs of the homeless through the following: The Community Development department shall continue to consider providing financial and technical assistance to any organization or consortium of organizations seeking to establish transitional housing or shelter programs to serve the homeless population. The City will take other steps, as necessary, to facilitate these programs (such as amending zoning regulations to allow temporary church-sponsored shelters). The City's Zoning Ordinance currently allows for the development of homeless shelters or transitional housing subject to the approval of a Conditional Use Permit (CUP). Should the City receive an application or other request for siting of such a facility, the City's Planning and Building Department will work to expeditiously process the request through the identification of suitable sites, along with a set of performance criteria under which the CUP will be granted. PAGE 98 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 Because site control is of. paramount importance for securing State and Federal funding, the City will also consider providing assistance in the site selection and acquisition process. This may include loans, land dedications, or land cost write downs. 5.2.4 Group Homes for Six or Fewer Persons Pursuant to State Law, a residential facility for six or fewer persons may not be treated differently than family dwellings o£ the same type in the same zone. A residential facility is defined as any family home, group care facility, or similar facility for 24-hour non-medical care. A residential facility also includes a foster family home, small family home, social rehabilitation facility, community treatxnent facility, and transitional shelter care facility. Therefore, small group homes for six or fewer persons can be located in any of the City's residential districts by right. Goal 6 - Encourage Energy and Waste Conservation as an Integral Part of Homes 6.1 Institute Conservation as Part of New Construction Five Year Objective: On-going Funding Source: ' There will be no direct cost to the City for encouraging and promoting water and energy conservation and recycling. Target Years: 1999-2004 6.1.1 Implement Federal and State Conservation Laws The Planning and Building department shall require new developments to comply with applicable Federal, State, regional, and local policies and regulations regarding energy and water conservation and air quality improvement. 6.1.2 Resource Conservation - New Housing The Planning and Building department shall encourage energy and water conservation in materials, construction techniques, and features including recycling storage areas, in new housing in conjunction x{,ith programs such as "Greenstar" and SDG&E's Comfort Wise Program. 6.1.3 Dual Piping The Engineering department shall continue' to require the installation of dual-piping systems in new subdivisions to accommodate the use of reclaimed water for landscaping and other applications as feasible. CiTY OF CHULA VISTA HOUSING ELEMENT 1999-2004 PAGE 99 OF 118 6.1.4 Water and Air Quality The Planning and Building department shall continue to require the submission of a '~vater conservation plan" and "air quality improvement plan" or other substantive equivalent document for large development projects at the Sectional Planning Area (SPA) Plan stage or similar level of review. 6.1.5 Title 24 Compliance Review The Planning and Building department shall continue to perform residential Title 24 energy analysis as part of building plan check procedures. 6.2 Promote Conservation in Existing Homes Five Year Objective: Change CHIP Guidelines Funding Source: There will be no direct cost to the City for encouraging and promoting water and energy conservation and recycling. Target Years: 1999-2004 6.2.1 Weatherization Programs The Community Development department shall continue to encourage weathefization programs for low-income households. 6.2.2 Rehabilitation Funds for Conservation Consider and promote energy conservation as an eligible activity for the City's residential rehabilitation programs administered by the Commurtity Development department. Goal 7 - Promote Equal Opportunity for All Residents to Reside in Housing of Their Choice 7.1 Fair Housing Practices Five Year Objective: Respond and provide fair housing assistaneeto 150persons Funding Source: CDBG Target Years: 1999-2004 PAGE 100 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 7.1.1 Affirmative Fair Marketing Plans All developers of housing projects which contain more than 20 dwelling units are required to prepare an "Affirmative Fair Marketing Plan," which should be designed to attract prospective homebuyers and/or tenants within the proposed market area, regardless of gender, age, race, national origin, or religion. 7.1.2 Fair Housing Services The Community Development department shall continue to provide fair housing services to Chula Vista residents and housing providers through the Fair Housing Council of San Diego. 7.1.3 Fair Housing Counseling and Education The Community Development department shall continue to provide fair housing - ~ounseling services and other referral activities which are designed to further the fair housing requirements of Title VIII of the Civil Rights Act of 1968. The City currently contracts with a fair housing consultant to respond to any requests or complaints regarding fair housing practices within the City and to provide an educational program for both residents and housing providers. - 7.1.4 Fair Housing Assessment The Community Development department shall conduct an assessment of impediments to fair housing choice every five years in conjunction with the · preparation of the Five-year Consolidated Plan for Housing and Community Development. This assessment will include an analysis of the actual level of discrimination in rental housing, for sale housing, and lending and a review of the Community Reinvestrnent activity of local lenders. Additionally, the City is required to Prepare an annual performance report of all housing and community development activities, including fair housing activities for the year. Goal 8 - Reduction and/or Removal to the Greatest Extent Possible of Identified Constraints to the Development, Maintenance, and Improvement of Housing. 8.1 Streamline Development Proce.q.qing Five Year Objective: To monitor development process for streamlining oppommities and adhere to the priorities for financial assistance. Funding Source: CDBG, HOME, Redevelopment Low/Moderate-Housing Funds, and private sector programs. Target Years: 1999-2004 CITY OF CHULA VISTA PAGE 101 OF 118. HOUSING ELEMENT 1999-2004 8.1.1 Development Fees The Planning and Building department shall continue to review development fees and facility financing to assure that they are as cost-effective as possible. The -' City will continue to consider subsidizing or deferring fees for affordable units on a case-by-case basis. 8.1.2 Expeditious Project Processing The Planning and Building and Community Development depamnents will continue to use a team approach to the application processing of affordabi'e low and moderate income residential developments. The Departments will continue to implement i~their project manager system that specifically assigns an Entitlement Proiect Manager (project planner) and a Conununity Developmen~ Pr~iect Coordinator to shepherd projects through the review process and coordinate post-entitlement issues. Additionally, the Planning and Buildin~ .~lepartment, in consultation with the Community Development dDepartment~ will assign priority processing of the necessary entitlements and plan checks for such residential development pr0iects which do not require extensive engineering or environmental review. Such affordable housing projects are time sensitive due lo deadlines established for the funding sources. 8.1.3 Evaluating Requests for Assistance The City shall consider assisting developers when necessary to enable residential projects to provide preferable product type or affordability in excess of the requirements of the City's Affordable Housing Program. Assistance will be offered to the extent that resources and programs are available and to the extent that the residential development assists the City in achieving its housing goals. The Commurfity Development department shall establish specific procedures for evaluating requests for subsidies involving fees, land write downs, and other forms of City assistance. Evaluation of requests for assistance shall be based on, but not limited to, the effectiveness of the assistance in achieving a preferable product type and/or the affordability objectives of the Housing Element, the capability of the development team, the reasonableness of development costs and justification of subsidy needs, and the extent to which other resources are used to leverage the requested assistance. Priority for financial assistance would be for those projects that have both of the following characteristics: 1) a substantial number of the project's un/ts have three bedrooms or more; and 2) a substantial number of the units are affordable to very low-income households (50 pement of area median income or less). PAGE 102 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 - 8.1.4 Flexible Development Standards The Planning and Building depar~nent shall continue to encourage the use of flexible development standards through the Planned Community (PC) Zone and -' Precise Plan (P) Modifying District, where such are clearly identified with increased availability of affordable housing. CiTY OF CHULA VISTA PAGE 103 OF 118 HOUSING ELEMENT 1999-2004 This page is intentionally blank. PAGE 104 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 APPENDIX A CITY OF CHULA Vi~TA HOUSING ELEMENT 1999-2004 PAGE 105 OF 118 This page left intentionally blank PAGE 108 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 APPENDIX B ~dlTY OF ~dHULA VISTA PAGE 109 OF 118 HOUSING ELEMENT 1999-2004 This page left intentionally blank. PAGE 110 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 SUMMARY OF MEETING VqITH AFFORDABLE HOUSING DEVELOPERS The City of Chula Vista has prepared its Draft Housing Element of the General Plan for the period beginning Suly 1, 1999 to June 30, 2004. One of the more important policies identified within the City's Housing Element is the Affordable Housing Pmgratn (AHP), which requires that developments of 50 or more residential units must provide a minimum of 10 percent of these units as affordable to low and moderate income households. Staff has also begun work on the Implementation Guidelines for this Program. In an effort to solicit comments from those most affected by the City's Affordable Housing Program, the City met with developers of affordable housing. It was staff's intent to receive candid input from these developers regarding their perceptions and experiences from the "other side of the counter" in processing affordable housing projects, barriers to developing and processing such projects, including but not limited to City fees and exactions, processing time, etc., and thc ~City's strengths and weaknesses in processing and development of affordable housing. The comments received and summarized below are generalized and do not necessarily reflect the comments of all developers nor do they represent the opinions of the City. The comments received were used to revise the constraints section of the Housing Element, to review the - proposed programs and goals of the Element to ensure that the City is taking measures to aid in reducing or mitigating cohstraints and barriers and to encourage housing opportunities throughout the City, and to guide the development.of the AHP Implementation Guidelines. It is the intent of the City to provide additional follow up to these meetings by reviewing the comments received, reviewing and evaluating City processes, and taking eppmpfiate actions, if necessary. The following is a summary of the meetings held on June 23 and July 14, 2000: Affordable Housing PrograTM Strongly support the Affordable Housing Program and the new construction of affordable housing. The intent of the AHP is to provide a balance of housing opportunities for all economic groups throughout the City. Without a mandatory program to provide affordable housing units within the newly developing areas of the community, residential developers would not provide these affordable housing opportunities. New construction should be the first priority for the Affordable Housing Program. While acquisition and rehabilitation of residential units is needed for revitalization, it does not create new housing and will not meet the increasing demand for housing as the population grows. Rehabilitation activities do not meet the City's goals under the State requirement to provide its share of the projected need for new housing in the region (Regional Need). The City has other programs, outside of the AHP, to address the community's need for preservation and maintenance of the existing housing stock. The AHP must be clear and enforced. CiTY OF CHULA VISTA PAGE 111 OF 118 HOUSING ELEMENT 1999-2004 In Lieu Alternative Affordable housing developers support the City's position to require the new construction of affordable housing. In lieu fees can be effective in producing affordable housing, if the in-lieu fee is calculated to establish the correct gap of what a low-income household can afford to pay for housing and the actual costs of constructing a trait. Typically, however, the revenue generated from the payment of in-lieu fees is insufficient to build the required units that are needed to meet the growing need for housing and more specifically housing that is affordable. Rehabilitation of Rental HousinE Where the City/Agency is providing financial assistance for the rehabilitation of units, the City/Agency should look at projects which provide deeper affordability levels than expected from new conslruction activities and housing for larger families. These rehabilitation projects are typically at rents below market. Typically, those existing units in need of rehabilitation on the Westside of the community are some of the more affordable but are in substandard condition. The older de~retopments are also typically smaller size units of one or two bedrooms. The C~ty s/Agency s participation should revolve the conversion of these small units to larger three+ bedroom units. While rehabilitation of existing housing does not add to the overall increase of available housing, the City's participation in the acquisition and rehabilitation of existing housing will convert these market rate units into affordable housing. Additionally, the rehabilitation of this housing will improve the overall quality of life of the residents by ensuring affordable rents, providing new amenities, and renovating substandard housing. Balance of Affordable Housing Activities Encourage the City to continue to implement activities/programs that provide both new construcl;ion and rehabilitation opportunities. Encourage the provision of affordable housing opportunities and activities throughout the City. While the City needs to provide new housing opportunities to meet the population growth, the City should balance this policy with the need to preserve and maintain existing housing to so as to prevent the acceleration of neglected and blighting neighborhoods. Identification of Targeted Area~ Developers spend their own predevelopment monies and time analyzing projects without the clear direction fi'om the City that the area or project is one that would be supported by the City/Agency. To better focus time and resources, developers would like the City to identify areas for revitalization and affordable housing opportunities. .Design Review Committee (DRC) The DRC makes landscape and architectural recommendations that some members of in the development conununity believe they are not qualified to make. These individuals believe that PAGE 11:2 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 at times, recommendations and comments that are made are subjective. Developers would like to see, if possible, more objective comments. DRC recommendations can add to the cost and processing time of projects. For affordable housing projects, additional design costs and delays in processing are critical. Limitations on budgets do not allow for additional costs to satisfy design considerations of the DRC. Affordable housing projects are time sensitive. The available sources of funding have critical deadlines that must be met and any delays jeopardize the project's ability to make these funding deadlines. Additional time added to the processing of projects also adds costs to project. The more time added to the timeline the more interest developers have to pay on their loans. It was noted that the City was currently reviewing the DRC process in an effort to streamline this process. As directed by the City Council, City staff is to make improvements to the existing process by having the DRC adopt procedural policies, meet with representatives of the development community, Chamber of Commerce and the DRC to identify inconsistencies and concerns, and to amend the Municipal Code regarding DRC membership and scope of responsibilities. Developers having more recently dealt with DRC have noted the changes taking place and were hopeful of the process. Plan Check Process The Planning and Building Department has contracted with an outside consultant for the plan check 0f large devel°pmenfs The nsc of outside consultants adds another layer of bureancracy. Developers currently have no point of contact with the consultant. Should developers 'have questions or need to find out the stares of a project, they must contact the City first, the City contacts the consultant, the consultant contacts the City and then the City responds back to the developer. There is no relationship/face with the consultant as there is with City staff. It was noted that the use of consultants for industrial or large-scale developments was intended to assist in speeding up the plan check process. To assist affordable housing developers with the processing of their time sensitive projects, the City could provide a specific contact person in the Building Division. Additionally, developers commented that there appears to be a lack of communication among the development services divisions of Engineering, Planning and Building. At times, it is their impression that staff members within the Building Department have little communication amongst themselves. Developers would encourage coordination and communication between all development services divisions. Affordable housing projects are extremely time sensitive. Such time delays in the processing of affordable housing projects lead to higher costs for the project and jeopardize the available funding sources. The City should establish a fast track process for affordable housing projects. Affordable housing projects are time sensitive due to deadlines established for the funding sources. For ~2iT¥ OF CHULA VISTA PAGE 113 OF 118 HOUSING ELE1VI~NT 1999-2004 example, tax credit projects are required to pull building permits within 90 days of being awarded the tax credits. ' Some affordable housing developers have been told that the City does implement a fast track process and an even faster process referred to as the "Red Path". Community Development staff and other developers are not aware of this fast track processing. Coordination Meetings With the processing of large affordable housing projects such as Teresina at Lomas Verdes, the developer found the "all as cooramation meetings to be extremely helpful. These meetings, which involved Planning, Engineering, the City Manager's Office, Community Development and the development team, allowed for issues to be aired and resolved with all parties present. This allowed for a faster processing of the project and demonstrated to the development team the high level of commitment of City staff. Fees Affordable housing projects are paying the same fees as market rate residential developments. However, affordable housing projects do not have the ability to pass these costs on to the project. These projects cannot generate the same revenue sources as market projects, such as rental income. Affordable housing developers strongly advocate the City to waive, reduce, or at a minimum, defer fees for affordable housing. Fees are one of the major govemm~ntal roadblocks to the production of affordable housing for low-income households. The City can provide Iow interest loans to affordable housing developers to assist with the development costs, in particular the costs of fees and permits. However, this assistance does not truly help to reduce the costs of developing affordable housing. Instead of using the City's financial assistance to make the housing more affordable, developers have to use the funds to pay fees and permits. In essence, the City provides $1 million in financial assistance and then affordable housing developers turn right around and pay the $1 million back to the City for the payment of City fees. ~ Many of the City's fees, such as sewer fees and assessment districts, are formula driven. As a result, fees are hard to pin down without having the most accurate information. Accurate estimates within the ballpark are needed. With the budget limitations of affordable housing projects, increases in costs due to wrong estimates of costs such as fees, means hard costs decisions. City staff needs to understand that these projects are not financed through conventional financing and therefore, these projects are much more sensitive to time delays and to increased costs. There is talk of the City of Los Angeles having a user-friendly system that allows developers to get a good estimate of fees. Reference their web site. PAGE 114 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 Otay Water District Difficult to deal with for the processing of projects and payment of fees. School Districts Difficult to deal with for ~he processing of projects and payment of fees. Often times, developers are dealing with consultants and there is a lack of communication. Community Facilities Districts (CFDs)/Homeowner's Association (HOA) By the time affordable housing developers get involved with a proposal tO build an affordable housing project, the property has already been annexed into a CFD and part of the HOA. Affordable housing developers would recommend that those sites for affordable housing projects not be included within a CFD or HOA. CFDs destroy the value of these projects. For those affordable housifig projects financed with tax-exempt bonds, CFDs are problematic because they lower the net operating income to be generated from the project and therefore, lower the bond issuance. With the budget limitations and no ability to raise rents (income) for affordable housing projects, increases in costs due to CFDs and HOAs, means hard costs decisions and less financing available. 9% Tax Credit Financing . Under the current regulations, affordable housing projects that are developed in response to inclusionary housing (balanced communities) policies are not able to compete effectively against those proposals addressing smart growth principals, housing for persons with AIDs or other special needs housing. Acquisition and rehabilitation projects within revitalization areas are better suited for tax credit financing. Tax Exempt Financing For those affordable housing projects Oeveloped in response to inclusionary housing (balanced communities) policies, tax exempt financing is the better financing option. As discussed earlier, CFDs are problematic. Unfortunately, in Chula Vista most of the new construction of affordable housing takes place in master planned communities, which are part of CFDs. At best, the lowest targeting of incomes that is financially feasible is 50 percent AMI. The City should not try to request any deeper affordability than the 50 percent AMI level. The experiences of developers working with the City for the issuance of tax-exempt bonds have been positive. The City has been reasonable in its issuer fee, reporting requirements and its regulatory agreements. The City has allowed the use ofprivate placement letters. CITY OF CHULA VISTA PAGE 115 OF 118 HOUSING ELEMENT 1999-2004 City/Agency Loans When providing financial assistance to developers of affordable housing, the assistance is typically provided as a below market residual receipts loan. Typical terms: 6 percent simple interest and repayment from a fund equal to ninety (90%) percent of the "Residual Receipts". The 90:10 split does not work. Most cities in the region, the County and the Stat6 provide financial assistance at a 3 percent interest rate. Developers would recommend that the split of residual receipts be based upon the industry standard of 50:50 and an interest rate of 3 percent. Article XXXIV of the State Constitution Article XXXIV of the California Constitution (Article 34) requires that voter approval be' obtained before any "state public body" develops, constructs or acquires a "low rent housing project". A redevelopment agency is a "state public body" for purposes of Article 34, and as a result, if a redeyelopment agency participates in development of a "low rent housing project" and that participation rises to the level of development, construction, or acquisition of the project by the agency, approval by the electorate pursuant to Article 34 is required for the project. On April 11, 1978 under Proposition C, the voters of Chula Vista authorized the development, construction, or acquisition of 400 units of "Iow rent housing" by the Agency. Of the 400 allowable credits, Chula Vista has utilized 293 units and has a balance of 107 units remaining. Analysis of the applicability of Article 34 to affordable housing projects has added time delays and costs associated with attorney fees. Developers would like the City to initiate a referendum to obtain more authority to develop affordable housing within the community. With the majority of residents needing affordable housing and the economic health of the City, this may be the most opportune time to gain voter approval of additional affordable housing. Attorneys Due to the complicated financing of affordable housing projects, issues of relocation, and Article XXXIV, many attorneys representing the investors, developers, and the City are involved. Developers have found the City's Attorneys to be very cautious at times in their approach to relocation and A~icle XXXIV. This has translated in to time delays to ensure all legal bases are covered and the subsequent increasing costs to the project for legal fees. While developers understand the Attorneys' need to protect the City's interest, it is recommended that issues be identified as early as possible and some flexibility be given. General Comments Chula Vista is one of the most friendly and easiest cities to deal with for the processing of projects. PAGE 116 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004 - MEETING WITH AFFORDABLE HOUSING DEVELOPERS ATTENDANCE June 23~ 2000 July 14~ 2000 Aha Baiz-Torres Ken Sauder, Executive Director MAAC Project Wakeland Housing and Community Development Chris Moxon, Community Development Director South Bay Community Services ' John Seymour Southern California Housing Development Co~poration Wally Dieckmann, Chief Financial Officer Chelsea Investment Corporation Chip Mmphy, Project Manager Ruben Islas "' Chelsea Investment Corporation Avalon Communities Staff Present: Jim Sandoval, Assistant Planning and Building Director - Juan P. Arroyo, Housing Manager Leilani Hines, Community Development Specialist t:l'13t' OF CHULA VISTA PAGE 117 OF 118 HOUSING ELEMENT 1999-2004 This page is intentionally blank. PAGE 118 OF 118 CITY OF CHULA VISTA HOUSING ELEMENT 1999-2004