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HomeMy WebLinkAboutItem 3a: Housing Element Update/� GALtFO$,�j9 r Sncorpor rcA . A­— 5,a1903 icy 0 DATE: TO: April 2, 2013 Honorable Mayor and City Council STAFF REPORT Development Services Department FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director Jim Kasama, Community Development Administrator Lisa L. Flores, Senior Planner SUBJECT: HOUSING ELEMENT UPDATE AND DISCUSSION OF HOUSING ELEMENT GOALS AND POLICIES Recommendation: Provide Direction SUMMARY The objective of this report is to provide the City Council with an overview of the Housing Element Update, the requirements of State housing law and the 2014- 2021 Regional Housing Needs Allocation (RHNA), and the input received from the Housing Element Workshop and Planning Commission. It is recommended that the City Council direct staff to make any changes that are deemed appropriate and authorize staff to submit the updated Housing Element to the California Department of Housing and Community Development for compliance review. BACKGROUND The City of Arcadia is in the process of updating the Housing Element of the General Plan. The California Department of Housing and Community Development (HCD) is requiring all cities to update their Housing Elements by the end of 2013. By adopting a Housing Element Update by this deadline, the City will have eight years until the next update is required, rather than the usual four years. The City's current Housing Element (attached as Exhibit "1 ") was certified by HCD in 2010, and since only minor changes have been made to housing law, a comprehensive update is not necessary. The updated Housing Element will be very similar to the current Housing Element, but with discussions of demographic changes, the public participation in the update process, new or changed constraints that impact the development of various housing types, a current inventory of potential housing sites, updated assessments of local and regional Housing Element Update April 2, 2013 Page 2 of 4 housing needs, and possible minor refinements to the City's housing goals, objectives and programs. A key component in updating a Housing Element is the Regional Housing Needs Allocation (RHNA), which is a calculation based on regional socio- economic, demographic, and housing development data to determine housing production goals for local communities. For Arcadia, the calculation is completed by the Southern California Association of Governments (SCAG). The RHNA used to establish programs that will accommodate the estimated housing needs of the projected population and employment growth during the planning period (2014- 2021). State housing law does not require that housing units be constructed to meet the RHNA projections. Instead, State law requires that cities update their policies, zoning standards, and other regulatory provisions to provide realistic opportunities for the private market to develop new housing units for all segments of the population. For the 2014 -2021 RHNA planning period (5th Cycle), SCAG assigned the City of Arcadia an allocation of 1,054 units; distributed as follows: Extremely Low income Very Low Income $19,440 - $32,400 I 138 . 340 Low Income $32,400-$51,840 I 167 . 340 Moderate Income $51 ,840 - $77,856 177 368 Above Moderate Income >$77,856 434 892 Total 1,054 2,149 The RHNA for the 2014 -2021 planning period assigns fewer dwelling units to the City of Arcadia than were assigned for the prior 2008 -2014 planning period. The reduction is 1,095 units, or approximately 50 %. The reduction is due to 2010 U.S. Census data, and adjustments to the household formation rate in the national, State, and local economies. This includes adjustments for the abnormal vacancy -rates statewide, the high unemployment rate, and the unprecedented number of foreclosures of the prolonged recession. At least two reviews by the California Department of Housing and Community Development (HCD) are required for approval of a Housing Element. The first Annual household income is based on a family of four. Housing Element Update April 2, 2013 Page 3 of 4 review is to determine if the proposed Housing Element complies with State requirements. If it does not, HCD suggests revisions. The second review is for certification, and it is expected that any suggested revisions will have been incorporated. On February 26, 2013, the City held a public workshop to receive input from the community. Several public outreach methods were utilized to encourage community involvement. All the major stakeholders that were involved in the 2010 General Plan Update were invited, the workshop was advertised in the Pasadena Star News and its website for two weeks, the Arcadia's Best website, and on the Arcadia General Plan website. Approximately 20 community members attended the workshop to learn about the City's Housing Element Update and provided input on what they like about their community, how Arcadia is doing in providing for the housing needs of the community, how the City can best address the housing situation, and what policies /programs could be considered. Attached as Exhibit "2" is a summary of the comments from the workshop. On March 12, 2013, the Planning Commission provided input on the Housing Element Update, and recommended that the Update address the following issues: • Unfinished construction projects and houses that sit vacant for years • Birthing centers in residential areas • Overly large residences • Goals and policies to ensure that the City maintains its identity as a Community of Homes for all and not just the very wealthy DISCUSSION The City Council is asked review the information provided to date and provide input on the housing issues and possible strategies to meet Arcadia's housing allocation. The City Council could also direct staff to enhance, clarify, or add to existing policies and programs in the updated Housing Element before it is submitted to HCD for their review. There will be additional opportunities for community review and comment later in the process; after the compliance review(s) by HCD. The Planning Commission and City Council will hold separate public hearings prior to adoption of the updated Housing Element by the City Council. A projected schedule follows: • May & June — Draft Housing Element Update submitted to HCD for compliance review and response to City through letter of "substantial compliance" or "suggested revisions ". Housing Element Update April 2, 2013 Page 4 of 4 • July — If necessary, resubmit draft Housing Element Update in accordance with "suggested revisions" in order for HCD to provide a letter of "substantial compliance ". • August & September — Environmental review and public review of the draft Housing Element Update. • September & October — Public hearings for adoption of the Housing Element Update and Environmental Analysis. ENVIRONMENTAL IMPACT The California Environmental Quality Act (CEQA) requires an Initial Study and at least a Negative Declaration or Mitigated Negative Declaration for the Housing Element Update. The appropriate document will be prepared along with the draft Housing Element Update. FISCAL IMPACT The City Council allocated approximately $22,000 from the General Fund for consultant services for the Housing Element Update. As a cost saving measure, the City's Planning Services staff will process the CEQA documents. The cost of the project is within the budget set by the City Council for RBF Consulting to assist staff and perform the work for $19,968 with a 10% contingency for any unforeseen costs. RECOMMENDATION It is recommended that the City Council provide direction on any necessary changes to the updated Housing Element and authorize staff to submit it to the California Department of Housing and Community Development for compliance review. Approved: Dominic Lazzar City Manager Attachments- Exhibit 1" - Current Housing Element Exhibit "2" - Comments from February 26 Workshop CHAPTER 5: HOUSING ELEMENT A r c a d i a G e n e r a l P l a n During the 1990s to today, Arcadia has experienced a continuing shift in the age structure and household composition of its population. Specifically, the 2000 Census reported an increased proportion of families with young children in the community. Arcadia's quality neighborhoods, excellent public services, and high- ranking public school system continue to attract new residents and families, resulting in upward pressure on the housing market. Even in the midst of a nationwide downturn of the housing market, home prices in Arcadia have experienced smaller decreases compared to neighboring communities or other communities in Los Angeles County. Arcadia residents value the family - oriented character of their community and take pride in the quality of its residential neighborhoods. This Housing Element reflects this guiding principle and includes goals, policies, and programs that work to preserve the integrity of existing neighborhood's. ARCADIA GENERAL PLAN - NOVEMBER 2010 14OUSING ELEMENT) 5 -1 Because Arcadia largely is a built -out suburban community, new residential construction has been accommodated primarily through the redevelopment of infill properties and the recycling of existing lower- intensity housing to medium- to higher - intensity uses. This trend is anticipated to continue. For example, with the extension of Gold Line light rail service into the City's Downtown, Arcadia sees an excellent opportunity to encourage transit - oriented development around the Gold Line station. Through the General Plan, the City promotes smart growth principles by encouraging higher - intensity mixed -use developments in Downtown, along First Avenue, and along Live Oak Avenue as a means of providing housing opportunities and encouraging walking and use of public transit (thereby reducing vehicle trips). Consistent with long - established City practices of promoting high- quality housing, this Element also accommodates continued development of single - family homes in neighborhoods that traditionally have had very large lots, remnants of prior days when horse - keeping and small -scale agricultural activities were permitted. Trends indicate that small -scale lot consolidation and resubdivision will continue to provide new sites for single - family homes. This Housing Element is an integral component of the General Plan; it builds upon other elements and is consistent with the vision and guiding principles that shape the General Plan goals and policies. As the General Plan is updated over time, the City will ensure consistency among General Plan elements so policies introduced in one element are consistent with other elements. The Housing Element consists of three components: ■ The Housing Element itself, which sets forth the City's housing goals and policies to address identified housing needs The General Plan Implementation Plan, which identifies specific programs to be pursued to achieve Housing Element goals and policies The Housing Element Technical Background Report, which includes the following: • A summary of the community outreach efforts undertaken that focused on issues relating to residential land uses and housing needs • The City's demographic profile, housing characteristics, and existing and future housing needs • A review of potential market, governmental, and environmental constraints to meeting the City's identified housing needs • An evaluation of the land and financial resources available to address the City's identified housing needs • A review of past accomplishments under the previously adopted Housing Element 5-2 1 14OUSING ELEMENT ARCADIA GENERAL PLAN - NOVEMBER 2010 Development of the 2008 -2014 Housing Element was guided by the following principles: ■ Balanced Growth and Development The General Plan establishes a balance and mix of land uses that promote economic growth and maintain ❑ high quality of life for Arcadia residents. Our development decisions reflect Smart Growth principles and strategies that move us toward enhanced mobility, more efficient use of resources and infrastructure, and healthier lifestyles. ■ Neighborhood Character Arcadia's single- family and multifamily residential neighborhoods have given the City its identify as a "Community of Homes." The City protects and preserves the character and quality of its neighborhoods by requiring harmonious design, careful planning, and the integration of sustainable principles. ■ Changing Housing Needs The City encourages the retention, rehabilitation, and development of diverse housing that meets the people's needs in all stages of their lives. ARCADIA GENERAL PLAN - NOVEMBER 2010 HOUSING ELEMENT 1 5 -3 The California Legislature has indicated that a primary housing goal for the State is ensuring every resident has a decent home and suitable living environment. Recognizing the important role of local planning in the pursuit of this goal, the Legislature has mandated that all jurisdictions in the State prepare a Housing Element as part of the comprehensive General Plan. Section 65302 of the Government Code sets forth the specific components to be included in the Housing Element. State law further requires that the Housing Element be updated periodically to reflect a community's changing housing needs. The Arcadia Housing Element was last updated in 2001. This Housing Element covers the planning period of July 1, 2008 through June 30, 2014. Section 65580 of the California Government Codes describes the State's housing goals as follows: ■ The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farm workers, is a priority of the highest order. ■ The early attainment of this goal requires cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians of all economic levels. ■ The provision of housing affordable to low and moderate income households requires the cooperation of all levels of the government. Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for housing needs of all economic segments of the community. ■ The Legislature recognizes that in carrying out this responsibility, each local government also has the responsibility to consider economic, environmental, and fiscal factors and community goals set forth in the general plan and to cooperate with other local governments and the state in addressing regional housing needs. Section 65581 of California Government Code reflects the Legislative intent for mandating that each city and county prepare a Housing Element: ■ Assure that counties and cities recognize their responsibilities in contributing to the attainment of the state housing goal 5 -4 1 HOUSING ELEMENT ARCADIA GENERAL. PLAN - NOVEMBER 2010 ■ Assure that counties and cities will prepare and implement housing elements, which along with federal and state programs, will move toward attainment of the state housing goals ■ Recognize that each locality is best capable of determining what efforts are required by it to contribute to the attainment of the state housing goal, provided such a determination is compatible with the state housing goal and regional housing needs ■ Ensure that each local government cooperates with other local governments in order to address regional housing needs Role of the Housing Element State law requires dousing Elements to be updated on a regular basis to reflect a community's changing housing needs.' This Housing Element is a six -year plan covering 2008 - 2014, unlike other General Plan elements, which typically cover a ten -year or longer planning horizon. This Housing Element identifies goals, policies, and programs that work toward: • Providing adequate housing sites to achieve a variety of housing • Preserving and improving housing and neighborhoods • Assisting in the provision of affordable housing • Removing governmental constraints to housing developments • Promoting fair and equal housing opportunities Housing and Household Conditions The Housing Element Technical Background Report details the demographic conditions and housing needs in Arcadia, addressing the issues required by Housing Element law. Highlighted here are the key issues. Existing Housing Stock Housing and neighborhood conservation are important to maintaining and improving quality of life. Commonly, housing over 30 years of age needs some form of major rehabilitation, such as a new roof, foundation work, plumbing, etc. Approximately 48 percent of the housing units in Arcadia were built prior to 1960, making many of these close to or over 80 years old today (Table H -1). However, because overall household incomes are higher than the County median, local homeowners invest in housing maintenance. Therefore, the age of homes in Arcadia does not necessarily equate to extensive rehabilitation needs. The Housing Element is expected to be updated again by July 1, 2014 for the planning period of 2014 -2022. Per 5B 375, the planning period for Housing Elements for subsequent cycles will be eight years to better coordinate with regional planning efforts. ARCADIA GENERAL PLAN - NOVEMBER 2010 HOUSING ELEMENT 1 5 -5 As of July 2009, Code Enforcement staff indicated that there were only five substandard housing units (in need of rehabilitation or removal) in Arcadia. Even with the depressed national and regional housing markets of the 2007 -2009 recession, during which deferred maintenance has been prevalent and many homeowners have abandoned their homes, few housing units in the City are considered substandard. TABLE 14-1: AGE OF HOUSING STOCK Year Built % of All Housing Units 1999 to March 2000 6% 1990 to 1998 9% 1980 to 1989 9% 1960 to 1979 28% 1940 to 1959 42% 1939 or earlier 6% Source: U.S. Census 2000 Despite the absence of substandard housing, the age of the housing stock alone indicates a potentially significant need for continued code enforcement, property maintenance, and housing rehabilitation programs to prevent housing deterioration. Efforts to improve and revitalize housing must address existing conditions, but also focus on encouraging preventive efforts to ensure that housing stock quality is maintained. Types of Housing A housing stock that consists of varied housing types, from single - family homes on large lots to townhomes to apartments, provide households of all income levels, ages, and sizes the opportunity to find housing suited to their needs. Table H -2 summarizes the housing mix in 1990, 2000, and 2008. As shown in Table H -2, the majority of housing units in Arcadia (67 percent in 2008) are single - family homes, while multifamily housing comprises 33 percent of the housing stock. According to the State Department of Finance, the City's housing stock grew by two percent between 2000 and 2008. 5 -6 1 14OU5ING ELEMENT ARCADIA GENERAL PLAN - NOVEMBER 2010 TABLE 14-2: HOUSING UNIT TYPES Housing Type 1990 2000 2008 2000 -2008 Percent Change Number Percent Number Percent Number Percent of of Units of Total of Units of Total of Units Total in Units Single- Family Detached 11,799 59% 11,857 58% 0% Single- Family Attached 1,609 8% 1,730 9% 7% Total Single- Family 13,152 68% 13,408 67% 13,587 67% 1% Multifamily 2 -4 Units - 1,379 7 °0 1,493 7% 8% Multifamily 5+ Units - - 5,157 26% 5,198 26% 10f Total Multifamily 6,316 32% 6,536 33% 6,691 33% 2% Mobile Homes, Trailer & Other 1 12 1 0% 1 26 O% 26 O% 0% Total All 19,480 1 100% 1 19,970 100% 20,304 1 100% 2% source: � ahtornia Uepartment of 1- inance, 1990, 2000, and 2008 Tenure and Vacancy Tenure refers to the occupancy of a housing unit — whether the unit is owner occupied or renter occupied. Tenure preferences are primarily related to household income, composition, and age of the householder. The tenure distribution (owner versus renter) of a community's housing stock influences several aspects of the local housing market. Pesidentiai mobility is influenced by tenure, with ownership housing evidencing ❑ much lower turnover rate than rental housing. In 2000, about 38 percent of Arcadia households were renters and 62 percent owned their homes (Table H -3). Housing vacancy rates - the number of vacant units compared to the total number of units -- reveal the housing supply and demand for a city. Some amount of housing vacancy is normal to allow for people moving from one place to another. In 2000, the vacancy rate for rental units in Arcadia was at 2.4 percent and for owner - occupied units 1.8 percent. A limited vacancy rate increases competition for housing and can result in higher housing costs, reducing housing opportunities for lower- income households. According to the California Department of Finance, the overall vacancy rate of Arcadia in 2008 was 4.1 percent. The overall vacancy rate in Los Angeles County in 2008 was projected at very similar 4.2 percent. The 2008 overall vacancy rates for surrounding cities were projected as follows: Pasadena 4.23 percent, Monrovia 3.26 percent, Alhambra 3.19 percent, Temple City 2.88 percent, and Sierra Madre 3.38 percent. ARCADIA GENERAL PLAN - NOVEMBER 2010 HOUSING ELEMENT 1 5 -7 TABLE H -3: OCCUPIED HOUSING TENURE AND VACANCY Tenure April 2008 1990 % Change 2000 Number Percent of Total Number El Monte Percent of Total Total Housing Units 18,352 Monrovia 100.0% 19,149 -21.7% 100.0% Renter - Occupied 7,052 -25.4% 38.4% 7,217 $845,000 28.5% Owner - Occupied 11,300 $525,000 61.6% 11,932 $440,000 62.3% Rental Vacancy Rate 5.0% 2.4% Owner Vacancy Rate 3.5% Overall Vacancy Rate 6.2% 4.1% Note: Overall vacancy rates include other vacancies in addition to owner /rental, including seasonal, other, and rented or sold out but not occupied. Source: U.S. Census 1990 and 2000. Median Home Prices In April 2009, the median price of all homes sold in Arcadia was $689,091 (Table H -4). This was eight percent lower than the median sale price in April 2008, revealing a small decrease in home prices compared to an almost 32 percent decrease in Los Angeles County as a whole over that some one -year period. Overall, the median home price in Los Angeles County is much lower than in Arcadia, at $300,000 in April 2009. During the sub -prime mortgage meltdown and economic recession that began in late 2007, Arcadia's home prices have remained relatively high. TABLE H -4: MEDIAN HOME PRICES County /City/Area April 2008 April 2009 % Change Arcadia $749,000 $689,091 -8.0% El Monte $399,000 $269,500 -32.5% Monrovia $480,000 $375,750 -21.7% Pasadena $620,000 $462,500 -25.4% Sierra Madre $657,500 $845,000 28.5% Temple City $527,500 $525,000 -0.5% Los Angeles County $440,000 $300,000 -31.8% Source: DataQuick California Home Sale Price Medians by County and City, 2009. Overpayment for Housing State and federal standards specify that households spending more than 30 percent of gross annual income on housing experience ❑ housing cost burden (also known as housing overpayment). Housing cost burdens occur when housing costs increase faster than household income. When a household spends more than 30 percent of its income on housing costs, it has less disposable income for other necessities, including health care, food, and clothing. As can be intuited, the cost burden decreases as overall income increases. 5 -8 1 HOUSING ELEMENT ARCADIA GENERAL PLAN - NOVEMBER 2010 In Arcadia, 35 percent of renters and 31 percent of owners experience housing cost burden (as reported by the federal Department of Housing and Urban Development). The most cost - burdened groups, according to 2004 HUD data, are large families and the elderly. Overall Housing Needs Several factors influence the degree of demand, or "need," for housing in Arcadia. The four major need categories considered in this element are: • Housing needs resulting from population growth, both in the City and the surrounding region • Housing needs resulting from the overcrowding of units • Housing needs that result when households pay more than they can afford for housing • Housing needs of "special needs groups" such as elderly, large families, female- headed households, households with a disabled person, farm workers, and the homeless Comprehensive Housing Affordability (CHAS) data developed by the Census for HUD (year 2000, the most up -to -date information available) provides detailed information on housing needs by income level for different types of households in Arcadia. The CHAS defines housing problems to include: • Units with physical defects (lacking complete kitchen or bathroom) • Overcrowded conditions (housing units with more than one person per room) • Housing cost burden, including utilities, exceeding 30 percent of gross income • Severe housing cost burden, including utilities, exceeding 50 percent of gross income TABLE 14-5: SUMMARY OF HOUSING NEED Households Number or % Total Households With Housing Cost Burden 6,266 Renter - Households with Housing Cost Burden 2,522 Owner - Households with Housing Cost Burden 3,744 Total Lower Income Households 5,033 % Extremely Low - Income Households with Cost Burden 64% % Very Low - Income Households with Cost Burden 83% % Low - Income Households with Cost Burden 63% Total Overcrowded Households 1,948 Overcrowded Renter - Households 1179 Overcrowded Owner - Households 819 ARCADIA GENERAL PLAN - NOVEMBER 2010 HOUSING ELEMENT 1 5 -9 TABLE H -5: SUMMARY OF HOUSING NEED Special Needs Groups Persons Elderly Persons 8,213 Disabled Persons 7,232 Large Households 2,262 Female Headed Households 2,172 Farm workers 0 Homeless 40 Affordable Units At -Risk of Conversion ZOO In general, renter households had a higher level of housing problems (46 percent) compared to owner households (36 percent). Among the 1,215 elderly renter households in the City, 76 percent were lower- income households, with 50 percent of all elderly renter - households experiencing one or more housing problems. Large renter families constituted only 679 of all households in 2000, but most (72 percent) experienced one or more housing problems, the highest rate among all other groups. Projected Housing Needs per the PHNA State Housing Element law requires that a local jurisdiction accommodate a share of the region's projected housing needs for the planning period. This share, called the Regional Housing Needs Allocation (RNNA), is important because State law mandates that jurisdictions provide sufficient land to accommodate a variety of housing opportunities for all economic segments of the community. Compliance with this requirement is measured by the jurisdiction's ability to provide adequate land to accommodate the RHNA. The Southern California Association of Governments (SCAG), as the regional planning agency, is responsible for allocating the RNNA to individual jurisdictions within the region. The RNNA is distributed by income category. For the 2008 -2014 Housing Element update, the City of Arcadia is allocated a RHNA of 2,149 units as follows: TABLE H -6: RNNA (2008 -2014) Income Group % of County MFI Total Housing Units Allocated Percentage of Units Very Low /Extremely Low 0 -50% 549 25.5% Low 51 -80% 340 15.8% Moderate 81 -120% 368 17.1% Above Moderate 120 %+ 892 x11.5% Total 2,149 100.0% Note: MFI = Median Family Income Source: Southern California Association of Governments, 2007 5 -10 1 HOUSING ELEMENT ARCADIA GENERAL PLAN - NOVEMBER 2010 The City must ensure the availability of residential sites at adequate densities and appropriate development standards to accommodate these units. State law requires that the City also project the housing needs of extremely low- income households. One acceptable approach is to assume 50 percent of the very low- income households as extremely low income. Therefore, from the very low- income household need of 549 units, the City has a projected need of 274 units for extremely low- income households. The RHNA for the 2008 -2014 Housing Element cycle in the SCAG region used January 1, 2006 as the baseline for projecting housing needs. As such, housing units constructed, issued building permits, or approved since January 1, 2006 can be credited toward the RHNA. Between January 1, 2006 and October, 2009, the City issued building permits for a total of 422 units, including 253 single - family units and 169 multifamily units. Included in the new multifamily units is a 76 -unit senior housing project. Specifically, the City utilized Redevelopment Housing Set - Aside funds to assist in the development of six offordable ownership housing for moderate- income households. These six units are deed restricted as affordable housing for 45 years, with resale provisions as required under California Redevelopment Law. (The Agency has purchased another property for affordable housing production. This second site is included in the detailed sites inventory in the Technical Background Report.) With these units, the City has a remaining PHNA of 1,727 units as follow: ■ 549 very low income ■ 340 low income ■ 362 moderate income ■ 476 above moderate income In the Land Use and Community Design Element, policies provide opportunities for future residential development through the following land use strategies: ■ Increased maximum density in the High Density Residential category (R -3 zone) from 24 units per acre to 30 units per acre. This strategy enhances the feasibility of multifamily development. ■ Allowing a density of up to 30 units per acre in the Mixed Use area along First Avenue, along with commercial development at an FAR of 1.0. ■ Creation of a Downtown Mixed Use designation that allows a residential density of 50 units per acre, along with commercial development at an FAR of 1.0, to capitalize on the planned Gold Line station in Downtown Arcadia. ARCADIA GENERAL PLAN - NOVEMBER 2010 HOUSING ELEMENT 1 5 -11 ■ Designating areas along Live Oak Avenue for Mixed Use development, allowing a density of up to 30 units per acre, along with commercial development at an FAR of 1.0. Appendix A in the Housing Element Technical Background report (under separate cover) contains a detailed listing of the vacant and underutilized parcels included in the sites inventory, maps identifying the vacant and underutilized parcels, and photographs illustrating 2009 conditions in the areas. 5 -12 1 14OUSING ELEMENT ARCADIA GENERAL. PLAN - NOVEMBER 2010 The City of Arcadia encourages and values community input. Preparation of the 2008 -2014 Housing Element was an integral component of the General Plan update process. As part of the General Plan, the City undertook an extensive public participation program. Outreach efforts that directly influenced the goals and policies in this Housing Element are described below. General Plan Advisory Committee The General Plan Advisory Committee (GPAC) included 13 people representing various City Commissions, major stakeholder groups, and the general public. This group provided assistance and made recommendations to the Planning Commission and City Council regarding the General Plan Update and critically, developed the Guiding Principles that are integral to the Plan. The Planning Commission has the legal responsibility for reviewing the General Plan and making a final recommendation to the City Council regarding the Update. All GPAC meetings were advertised on the General Plan website. The Land Use Element, which allocates the land uses throughout the City, was a result of intensive work by the GPAC to define a physical vision for the community. The Land Use Element introduces the following new land use designations that present residential development potential: ' Nigh Density Residential - permits development at a density up to 30 units per acre Mixed Use - permits mixed use development at a density up to 30 units per acre and an FAR (Floor Area Ratio) of 1.0 ■ Downtown Mixed Use - permits mixed use development at a density up to 50 units per acre and an FAR of 1.0 These land use designations recognize the changing needs of the community and the opportunity presented with the anticipated extension of the Gold Line and the station in Downtown Arcadia. Public Workshops Throughout the General Plan process, the City staff conducted community workshops and a downtown land use workshop to hear about the types of future land uses Arcadia residents would like to see, where they should ARCADIA GENERAL PLAN - NOVEMBER 2010 HOUSING ELEMENT 1 5 -13 occur, and the reasons why they think these land uses would be beneficial to their City. Community Workshop The City held the first General Plan community workshop on Saturday, May 31, 2008, at the Police Department Open House and Safety Pair. The workshop was advertised in the newspaper and on the General Plan Website. The City introduced the General Plan program to Arcadia residents and gathered input from participants on potential General Plan issues and on an overall vision for Arcadia's future. There were six stations: 1. General Plan Information 2. Land Use (Live Oak in year 2025 and downtown and beyond) 3. Housing 4. Sustainability 5. Traffic and Mobility 6. Neighborhood ideas Based on the comments received at the workshop, there was ❑ general concern regarding increasing density in the City. However, residents felt that new multifamily residential should be targeted in specific locations (such as Live Oak Avenue). A Visual Preference Survey was also conducted; most residents prefer more traditional designs over modern designs. Downtown Workshop A workshop specific to Downtown issues was conducted in October of 2008. Notice was sent to all property owners and business owners of the Downtown area. The meeting was also advertised in the newspaper and posted on the General Plan Website. Participants gathered at the Arcadia Women's Club to discuss and plan the future of the City's Downtown. The workshop consisted of a slide presentation followed by a moderated public comment session. In order to focus discussion of the various issues affecting Downtown, the staff divided the Downtown into four areas. 1. The future Gold Line Station and surrounding properties 2. First Avenue and Huntington Drive 3. Santa Anita Avenue 4. The Industrial -zoned area Participants of this workshop recognized that this area needs to attract more people to sustain a viable business environment. Therefore, introducing residential uses in this area complement the planned Gold Line Station and support the business market. Mixed use development (residential above commercial) would be an appropriate form of development in the Downtown. 5 -14 1 HOUSING ELEMENT ARCADIA GENERAL PLAN - NOVEMBER 2010 Other Public Meetings In addition, the General Plan consultant team also attended and made presentations at multiple meetings of community and business groups. These include the Arcadia Chinese Association, Chamber of Commerce, and Asian Business Night. Stakeholder Interviews An important component of the General Plan Update is to receive input from important stakeholder groups within the City. As part of this process, the City interviewed each of the City Council and Planning Commissioners, and many major stakeholder groups during a five -day process in May and June of 2008. Stakeholders interviewed represented the following groups: • City Council • Planning Commission • Arcadia Historical Museum Commission • Parks and Recreation Commission • Senior Citizens Commission • City of Arcadia Library Board of Trustees • Healthcare providers • Red Cross • Arcadia Unified School District • Chinese Booster Club • PTA representatives from various schools • Arcadia High School students • Faith -based organizations • Arcadia Chinese Association • Arcadia First! • Arcadia Wins! • Chamber of Commerce • Peal estate and business groups • Historic groups • Public service clubs • Homeowners associations The information gathered is crucial in framing the priority issues and important characteristics of the General Plan process. Key housing comments received include: • Mansionization remains an issue in Arcadia. • New multifamily residential development should be located around the planned Gold Line Station, along First Avenue where mixed use is appropriate, and along Live Oak Avenue. • Maintaining the character of a "Community of Homes" is crucial to residents. • Senior housing is needed, especially for long -time residents to age in place and downsize to homes that require less maintenance. • Housing opportunities for local public employees (e.g. police, firemen, and teachers) are needed. The Housing Element responds to these concerns by focusing new multifamily residential development in targeted areas (Downtown Arcadia and mixed use areas along First Avenue and Live Oak Avenue), ARCADIA GENERAL PLAN - NOVEMBER 2010 HOUSING ELEMENT 1 5 -15 Addressing Public Comments Overall, the Housing Element balances the various comments received during the public participation process with mandates of the Housing Element law. Specifically, the Housing Element works hand -in -hand with the Land Use Element to facilitate new multifamily residential development in targeted areas (Downtown Arcadia, and Mixed Use areas along First Avenue and Live Oak Avenue) in order to accommodate the City's share of regional housing needs. The Housing Element also emphasizes the importance of maintaining the integrity of existing neighborhoods and improving the quality of housing. Comment Themes Housing Element Response Maintaining of the character ' Continues to offer housing programs that as a "Community of Homes" preserve the quality and character of existing neighborhoods, such as residential rehabilitation assistance and code enforcement services. ■ Focuses future residential growth in the Mixed Use (MU) and Downtown Mixed Use (DMU) areas as a means of preserving existing neighborhoods and promoting smart growth principles. Facilitating high - density " Increases the maximum density for High Density residential and mixed use Residential from 24 units per acre to 30 units developments at targeted per acre. locations only - in Downtown ` Increases Mixed Use (MU) density from 22 units Arcadia, and along First per acre to 30 units per acre. Avenue and Live Oak Avenue ' Introduces a new Downtown Mixed Use (DMU) designation that allows up to 50 units per acre. ■ Includes housing program to facilitate and encourage Future residential development to occur in the Mixed Use (MU) and Downtown Mixed Use (DMU) designations. ■ Includes program to offer incentives for mixed use developments and lot consolidation. Facilitating the development of ` Offers increased opportunities for multifamily senior housing and affordable housing development. housing opportunities for M Includes program to offer incentives to facilitate public employees mixed use developments in targeted areas. ■ Includes program to continue City efforts in creating affordable ownership housing for moderate income households. 5 -16 1 HOUSING ELEMENT ARCADIA GENERAL PLAN - NOVEMBER 2010 Existing !-dousing Stock As the existing housing stock in Arcadia is in good condition and provides housing opportunities for households of all sizes, composition, and income ranges, one key focus will be on conserving the stock. GOAL 14-1: Conserve and improve the condition of the existing housing stock. Policy H -1.1: Continue to monitor and enforce building and property maintenance codes in residential neighborhoods to prevent the physical deterioration of existing sound housing within the City. Policy H -1.2: Continue to provide code enforcement services designed to maintain the quality of the housing stock and the neighborhoods. Policy 14-1.3: Work with property owners and nonprofit housing providers to preserve existing housing for low- and moderate - income households. Policy H -1.4: Support the preservation and maintenance of historically and architecturally significant buildings and neighborhoods. Policy H -1.5: Preserve the unique environmental aspects of the community, including hillsides, canyons, and other environmental amenities, by allowing only minimal disruption and low - density development. Policy H -1.6: Retain no less than the present number (2009) of assisted housing units of all types, and expand affordable housing opportunities for extremely low -, very low -, low -, and moderate - income households. Policy H -1.7: Support efforts of Homeowners Associations to maintain and improve the quality of the housing stock and neighborhood conditions. ARCADIA GENERAL PLAN - NOVEMBER 2010 HOUSING ELEMENT 1 5 -17 Adequate Sites for Housing A major challenge in meeting the housing needs of all segments of the community is the provision of adequate sites for all types, sizes, and prices of housing. Persons and households of different ages, compositions, incomes, and lifestyles have a variety of housing needs and preferences that evolve over time and in response to changing life circumstances. Providing an adequate supply and diversity of housing accommodates changing housing needs of residents. The Arcadia General Plan and zoning regulations establish where housing may be located. To provide adequate housing and maximize use of limited land resources, new development should be constructed at appropriate densities that maximize the intended use of the land. Although Arcadia is primarily built out, accommodating housing sites is addressed by a mix of various land use strategies. The City has identified vacant, underutilized, and mixed use sites that can accommodate housing (see the Technical Background Report for details). Land use strategies in this General Plan include: ■ Increased maximum density in the High Density Residential category (R -3 zone) from 24 units per acre to 30 units per acre. This strategy enhances the feasibility of multifamily housing construction. ■ Allowing a density of up to 30 units per acre in Mixed Use area along First Avenue, along with commercial development at an FAR of 1.0. ■ Creation of the Downtown Mixed Use designation that allows a residential density of 50 units per acre, along with commercial development at an FAR of 1.0, to capitalize on the planned Gold Line station in Downtown Arcadia. ■ Designating areas (along Live Oak Avenue) for Mixed Use development, allowing a density of up to 30 units per acre, along with commercial development at an FAR of 1.0. Given the City's built -out character, few vacant properties remain within the City's Residential Estate (RE) and Very Low Density Residential (VLDR) neighborhoods. However, underutilized lots in residential areas can be used to help accommodate housing sites. Lot sizes in these neighborhoods vary, with some neighborhoods having predominate lot sizes of 20,000 square feet or larger even though the zoning allows minimum lot sizes of 7,500 square feet. Activity such as subdividing large lots, or even consolidating multiple lots and re- subdividing, can help increase the supply of market rate housing units. This type of activity has been prevalent in Arcadia. In addition to the new subdivisions, new residential development can occur through the recycling of lower- intensity residential uses to higher - density developments in the Nigh Density Residential (HDR) areas. 5 -18 1 HOUSING ELEMENT ARCADIA GENERAL PLAN - NOVEMBER 2010 The detailed sites inventory indicates that adequate sites are available to accommodate the RHNA for all income categories within the planning period. GOAL 14-2: Provide suitable sites for housing development which can accommodate a range of housing by type, size, location, price, and tenure. Policy H -2.1: Provide for a range of residential densities and products, including low- density single- family uses, moderate- density townhomes, higher - density apartments/ condominiums, and units in mixed -use developments. Policy H -2.2: Encourage development of residential uses in strategic proximity to employment, recreational facilities, schools, neighborhood commercial areas, and transportation routes. Policy 14-2.3: Encourage compatible residential development in areas with recyclable or underutilized land. Policy 14-2.4: Maintain development standards, regulations, and design features that are flexible to provide a variety of housing types and facilitate housing that is appropriate for the neighborhoods in which they are located. Policy H -2.5: Promote commercial /residential mixed use developments in Downtown Arcadia and along First Avenue and Live Oak Avenue. Policy H -2.6: Require that the density or intensity, as well as design of new developments, be compatible with adjacent neighborhoods. Addressing All Economic Segments of the Community Providing affordable housing is essential for a healthy and balanced community. In addition to a diverse mix of housing types, it is necessary to make housing available for residents of all income levels to accommodate residents at different stages of life, including but not limited to young single professionals, young families, mature families with expanding household size (such as children and grandparents), and seniors. Decent and affordable housing is needed not only for lower- and moderate- income households, but also middle - income households that form the foundation of ARCADIA GENERAL PLAN - NOVEMBER 2010 HOUSING ELEMENT 1 5 -19 the City's workforce. Seeking funding from varied sources increases the opportunities for development of affordable housing units. The City will continue to work with both non - profit and for - profit developers in the production of affordable for -sale and rental housing. GOAL 14-3: Assist in the provision of housing that meets the needs of all economic segments of the community. Policy H -3.7: Facilitate homeownership opportunities for lower- and moderate - income households. Policy H -3.2: Work with non - profit and for - profit developers to maximize resources available for the provision of housing affordable to lower- and moderate - income households. Policy H -3.3: Address the housing needs of special populations and extremely low- income households through a range of housing options, including emergency shelters, transitional housing, and supportive housing. Policy H -3.4: Promote the use of energy conservation features in the design of residential development to conserve natural resources and lower energy costs. Minimizing Constraints to Housing Development Market factors and government regulations can significantly impact the production and affordability of housing. Pursuant to State law, the City is obligated to address, and where legally possible, remove governmental constraints affecting the maintenance, improvement, and development of housing. Although market conditions are often beyond the direct influence of any jurisdiction, efforts can be directed at ensuring the reasonableness of land use controls, development standards, permit - processing, fees and exactions, and governmental requirements to encourage housing production. Removing constraints on housing development can help address housing needs in the City by expediting construction, and lowering development costs. 5 -20 1 HOUSING ELEMENT ARCADIA GENERAL PLAN - NOVEMBER 2010 GOAL H -4: Mitigate potential governmental constraints to housing production and affordability. Policy H -4.1: Periodically review and modify as appropriate residential and mixed use development standards, regulations, and processing procedures that are determined to constrain housing development, particularly housing for lower- and moderate - income households and for persons with special needs. Policy H -4.2: Offer regulatory incentives and concessions for affordable housing, such as relief from development standards, density bonuses, or fee waivers where deemed to be appropriate. Policy H -4.3: Provide for streamlined, timely, and coordinated processing of residential projects to minimize holding costs and encourage housing production. Policy 14-4.4: Support infill development at suitable locations and provide, where appropriate, incentives to facilitate development. Promoting Fair Housing Arcadia supports fair and equal housing opportunities for all. Whether through mediating disputes, investigation of bona fide complaints of discrimination, or through the provision of education services, fair housing services work toward fair and equal access to housing. The following policies are designed to continue implementation of applicable fair housing laws. GOAL H -5s Continue to promote equal housing opportunity in the City's housing market regardless of age, race, color, national origin, ancestry, sex, disability, marital status, familial status, source of income, sexual orientation, or any other arbitrary factors. Policy H -5.1: Provide fair housing services to Arcadia residents, and ensure that residents are aware of their rights and responsibilities regarding fair housing. ARCADIA GENERAL PLAN - NOVEMBER 2010 14OUSING ELEMENT 1 5 -21 Policy 14-5.2: Provide equal access to housing for special needs residents. Policy H -5.3: Promote the provision of disabled - accessible units and housing for the disabled. 5 -22 1 HOUSING ELEMENT ARCADIA GENERAL PLAN - NOVEMBER 2010 Arcadia Housing Element Workshop February 26, 2013 Treasures Great Schools • The school district • School duality • Schools • Excellent schools • Good schools • Good school district Real Estate • Lack of obvious poverty • Real estate values • Beautiful homes /landscape • Housing price is stable • Balance of residential, commercial, and recreational Local Landmarks • Arboretum • Arboretum • Race Track • Race Track • Race Track Open Space • Outdoor ambience So. Calif. • Good fi-ontage • Lot size • Open space • Openness of home lots Location/Geography • Geography — central location • Geographical location — proximity to LA, Pasadena, Mountains, Beach, Roads 1 • Close proximity to many iconic places in Southern California Culture/Density • "cultural interests" and proximity to Pasadena • The diversity of the community Safe Arcadia • Nice and safe neighborhood • Harmony and compatibility of my neighborhood • Safe neighborhood • High quality governess • Neighborhoods that flake pride in their neighborhood Trees • Large trees • Old growth trees • Trees Services • Stands above compared to others • City staff — responsive • Many good restaurants and services • High quality services Challenges Culture and Housing Needs • Cultural integration • Cultural differences — housing needs Traffic Problems • Traffic • Parking • Too much traffic • Traffic — congestion • Lack of access to transit • Light pollution Lack of Affordablc Housing • Lack of buildable land FA • Low affordability for many • House is too expensive in Arcadia • Lack of low cost housing • Cost of homes being driven up by outside building • Grand children even with good professions won't be able to live here • Access to affordable housing • Arcadia NOT providing housing need • Land costs • High housing prices (Iittle affordable options) Lack of Activities • Lack of Activities /culture for young adults Vacant Units • Houses that are empty — for extended periods of time creating a ghost town • Houses bought by out -of country people to park money and avoid confiscation by their government Mansions • Curb real estate redevelop to maximum buildable area • Mansionization • Mansions everywhere • Mansionization control • Control of mansionization and retention of existing neighborhoods environments • Houses that present too great a mass that don't fit harmoniously in the neighborhood • Homes too large for lot and neighborhood • Outsize homes being built • Stricter controls and "architectural guidelines" set on mansions south of Duarte Road. Others • Lack of proper "Downtown" • Improve the continuity of the various neighborhoods • Non -local government mismanagement • Abutment between apartments and residential too lenient • Dealing with a City Council that places a higher value on builders needs and priorities than the needs of residents • Increased need for single -story homes to meet the needs of those as they advance in age • Personal, people, communicating as neighbors Green/Parks • Pruning correctly — not "topping" trees 3 • Sufficient green zones — parks other than school facilities Visions Improve Downtown • Need an active downtown housing residents and for residents to go • More pedestrian friendly retail downtown • Develop 1 '` Avenue for businesses • Pedestrian friendly downtown • Develop a new apartment complex at Gold Line Station Limit Big Homes • Control greedy developers from destroying our neighborhoods FOR PROFIT • Effective design review business apartments and homes • Retain neighborhood friendliness • Clear policies that effectively control over -built homes • Future effect on property values when mansions market demand drops in real estate cycle • Keep homes proportional in a neighborhood Diversity • Arcadia as a cultural center in the SG Valley • Cross economic integration "a blend" • Get better "buy -in" from. City's diversity Improve Transit • More parking • Free bus from Gold Lune to local "Points of Interest" More Affordable Housing • Set aside an area for apartments reasonable cost for young professionals (such as proposed by Caruso) • Create eco- friendly affordable housing • A good balance of affordable quality housing and recreational facilities Other • Long term fiscal health for schools, City, and citizens • Integrated newcomers blending with customs, rules, and walking on streets towards traffic • Providing a full service senior living community (active, assisted living, and skilled nursing) 4 * Improve water retention from rain /snow on the mountains by planting deciduous trees on our local mountains. Integrated Land Uses Racetrack • Utilize racetrack parking lot Make the City More Sustainable • Green and sustainable regulation to water conservation of landscape • More "green" policies and programs for a healthy community • Include light pollution in environmental reviews — let's get our night skies back • Effective tree program Photos from the February 26, 2013 Workshop .er -14AL I L -I,1 rig • {,��~,�. -- - � 5