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HomeMy WebLinkAboutcc min 1984/08/30 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF CHULA VISTA, CALIFORNIA Thursday, August 30, 1984 Council Chamber 4:00 p.m. Public Services Building ROLL CALL Councilmembers present: Mayor Cox, Councilmembers McCandliss, Scott, Moore, Councilmember Malcolm arrived late Councilmembers absent: None Staff present: City Manager Goss, City Attorney Harron, Assistant City Manager Asmus 1. SANDAG HOUSING STUDY Mr. Mike McLaughlin, SANDAG representative, outlined the three part housing study for the City of Chula Vista (1) analysis of housing market in the City; (2) report on City's progress in meeting its fair share and (3) comparison of fair share progress of the City in comparison to the region and a few of the selected cities. He explained the City has providing assisted housing for lower income housholds at its fair share rate, in comparision to the rest of the region. Housing Market Analysis (1) The City has a larger proportion of housing for middle income households and conversely smaller proportions for low and moderate income households, especially very low income households. (2) Vacant units - both single-family and multi-family in the City are virtually nonexistent. The number of vacant units have been steadily declining since 1981. (3) During the past four years, SANDAG estimates show less than 250 multi-family units per year have been built in the City. Mr. Md_aughlin stated the demand for housing will increase dramatically over the next 20 years especially in the City's general planning area where 28,000 households are expected to be added to the City from 1980-2000. Fair Share Progress Th is part of the study deals with Assisted Housing Performance requirement of the City where SANDAG developed affordable housing indexes for the study. The Assisted Housing Performance conclusions are: Council Conference - 2 - August 30, 1984 (1) The City achieved its assisted housing fair share percentage. (2) The City provided assisted housing for elderly and family households equal to the proportions of lower income family and elderly households. (3) The City met 56.2% of its fair share goal for lower households to be assisted. The affordability index showed two major conclusions: {1) 6% of owner housing in the City is affordable to lower and moderate income households - a substantial reduction from 1970-1980. {2) Rental units are more affordable to low and moderate income groups. Only one-fifth of tenter housing in the City was affordable to the very low income households. The Fair Share Comparison compared Chula Vista to the region as well as each city and the two cities chosen for comparison were Escondido and National City. Chula Vista had the best ratio of fair share percentage in comparison to assisted housing performance. Chula Vista's extent of assisted housing provided was almost identical to its fair share percentage. The City's mix of elderly and family assisted housing was also the best in the region - City at 56% and region at 55% met about half of fair share goals. Indexes provided the general conclusion that in comparison to the region of affordable housing indexes the City aligned very closely to the region's except the region had a higher percentage of units affordable to the very low income households (renter and owner). In summary, Mr. McLoughlin stated the City has been very close to the regional norm for providing fair share housing and if this level of effort is extended over the next five years the City should continue to meet its fair share responsibilities. In answer to Council's questions, Mr. McLaughlin explained there is an overall shortage of affordable housing for the very low income categories; there is no longer authorization for new construction for Federal (Section 8) housing; conventional markets will not provide low-income housing; National City and Imperial Beach have met the percentage of low-income housing with emphasis on the elderly; SANDAG report only takes into account those projects that have a firm funding reservation at the time the report is completed; report includes assisted housing, if some form of public assistance for those units and affordable housing index units are within those rent ranges; mobilehome low cost housing is not included in the assisted-housing portion, but they would be included in the affordable housing index; Council would like the report to be more comprehensive with how housing matches up with households (number of family members); staff would like anticipated changes within the area included in the report; the number of projects not included in the SANDAG report because funding was cut as of January l, included six different projects and totalled 700 units of low and moderate units. Council Conference - 3 - August 30, 1984 Housing Coordinator Gustafson presented overhead slides explaining the statistics involved for the very low, low and moderate income households at or below the median income. This report included the renter/owner affordability as well as price/rent affordabil ity and a summary of the supply and demand of owner/renter units with number of households in demand. Mr. Gustafson described the number of very low, low and moderate assisted rental units (family) built or under construction as well as the number proposed to be built including elderly rental units. He explained the number of units for family/elderly rentals regarding the moderate income assisted owner units built or under construction and ~-oposed as well as a summary of assisted housing units in Chula Vista xisting or proposed). Included in the presentation was a map depicting the assisted housing projects in the unincorporated general planning area. In answer to Mayor Cox' query, Mr. Gustafson stated the builder has been selected for the Town Centre Manor completion but is not under contract yet. There are 60-70 days to complete the project once the builder comes on site and may take an additional 30 days since there are so many descrepancies. At the conclusion of the report Mr. Gustafson answered questions regarding the projections made for future housing growth. (1) Tenure type consists of 58% owner and 42% rental which is similar to the regional mix. A strong owner proportion contributes to the community stability through greater length of tenure but there may be a problem with increasing non-affordability of owner units. Growth in the general planning area may be anticiapted as strongly owner units. (2) Cost: Chula Vista has less low cost renter and owner housing than the region probably as a result of having less older, substandard housing which means fewer housing opportunites for very low income households. Chula Vista has less high cost renter and owner housing than the region. (3) Growth: The greatest new construction growth will occur in general planning area outside corporate boundaries with 66% of new units built by year 2000 will be in General Planning Area. The growth will be predominently in higher cost, owner units. Regarding the City's profile of housing type and cost responding appropriately to the City's housing demand the City has a 2.4% multifamily vacancy rate and a .07% single-family vacancy rate indicating a "tight" market. Affordable units supply falls far short of need in low and moderate income (60% of population) categories, especially for very low income. Council Conference - 4 - August 30, 1984 Regarding the City responding to its fair share of regional assisted housing goals and how its response compares to other jurisdictions, the City met percentage-of-region goal doing better than most jurisdictions. The City met about half of numerical Fair Share goal ranking sixth out of 17 jurisdictions and exactly met family/elderly mix goals, the only jurisdiction to do so. Mr. Gustarson showed a map describing the distribution of low and moderate income for senior housing units in Chula Vista. Councilman Moore requested a copy of this map be made available to Council. Councilman Malcolm was concerned with staff and applicant becoming involved with projects and Council not having knowledge of this prior to completion of projects. In conclusion, the following five recommendations were presented by Mr. Gustarson: (1} The City should continue Fair Share effort, as need is proportional and increases with growth. {2} The City should pursue federal assisted housing funding, the only viable new construction potential for very low income households, a group the private development market cannot respond to. Pursue tax exempt financing programs for low and moderate income rental housing. (3) The City should pursue single family tax-exempt mortgage bond programs and consider cash assistance to moderate income for sale housing projects. Pursue alternatives to mobile home rental parks, such as subdivisions and cooperatives. (4) New development in general planning area should include substantial amount of City's low and moderate income housing goals, to balance demographics, to avoid impaction on existing City as a result of infill and to respond to growth trend. {5) Continue senior housing development policy in response to shortage of affordable senior units and seek practical disbursement of such projects while keeping in mind need for proximate services for seniors. MSUC {Malcolm/McCandliss) to accept the report. Council Conference - 5 - August 30, 1984 2. NAVY HOUSING Director of Planning Krempl introduced Commander Shepard of the U. S. Navy and Navy staff members explaining several meetings with Council have been held with staff and Navy as well as Council workshops including a tour to view existing projects. The Planning Department indicated preference of having the project go through standard design review. The suggestion was made for the City to have input in the RFP process and preferable to no input into the design standards adding it is difficult to quantify the numbers ~n terms of a qualitative product. Commander Scott Shepard, representing the San Diego Branch of the Western Division of San Bruno stated he and staff members were here for the purpose of responding to Councils questions and concerns and introduced Sharon Topping, Acquisition Department and Deborah Dill, Planning Department. Ms. Topping stated she was responsible for ensuring construction process starts and finishes and reported the Navy is moving forward with engineering studies and have submitted their budget to headquarters. She explained the FY 1986 program has been reviewed by the Navy Comptroller and will be reviewed by the Secretary of Defense within the next month and then submitted to Congress in the January timeframe. She explained the Request For Proposals (RFP) will be prepared for May 1985 but nothing concrete has been done at this time regarding contracting. Council discussion ensued regarding RFP availability for Council/Staff comment; point allocation to proposers to be discussed at RFP review time; reliance on RFP to have a final product not as productive as having a private contractor; concern regarding the Navy's use of traditional planning techniques; Navy method of reviewing bids and number of proposals received annually; small local groups unable to compete with professional "turn key specialists"; lack of aesthetic landscaping and street parking; prefer better quality construction in Chula Vista; Pomerado facility lacking in quality features clutter of large number of cars looks "tack~'; concern with longevity of features and easy maintenance; Councilman Malcolm noted that at the Council Conference of May 19, 1984 there was a motion requesting staff to come back with a report, as soon as possible, on what kind of fees would be available from low-moderate income funds to pay for various expense fees associated with this project. He felt the Navy should live up to the Chula Vista strict design guidelines as Chula Vista is designated as a "Scenic Route" City. The Navy has not indicated their willingness to subscribe to these standards. Community Development Director Pestochers explained low and moderate housing funds tax increment could possibly be used for this project because the incomes of people that would be living in the development would fit into the low and moderate category. HUD would not let the City use tax funds. Council Conference - 6 - August 30, 1984 Mayor Cox stated Chula Vista State housing funds are available and suggested the Navy build specifications Chula Vista would like to have and suggested the Navy and Redevelopment Agency work together to include extra items at City expense. Miss Topping explained the final RFP documents will be out by May 1985 and e e of the "turn key" process. Similar RFP's could be made available to Council and guidelines from Chula Vista standards were requested by Ms. Topping. CITY MANAGER'S REPORT a. MSUC (McCandliss/Scott) for Closed Session for personnel litigation. COUNCIL COMMENT'S (None) Council recessed to Closed Session at 6 p.m. The Deputy City Clerk was excused and the City Manager reported the meeting ended at 6:10 p.m. ADJOURNMENT AT 6:10 p.m. to the regular meeting Tuesday, September 4, 1984 at 7p.m. JENNIE M. FULASZ,CMC City Clerk PA~T~R~ICIA A. GUARDACOSTA Deputy City Clerk WPG:0476C PAG