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HomeMy WebLinkAbout1-25-22 PC Agenda PacketCITY OF ARCADIA Arcadia Planning Commission Regular Meeting Agenda Tuesday, January 25, 2022, 7:00 p.m. As part of the City of Arcadia’s COVID-19 transmission mitigation efforts and pursuant to the Brown Act and AB 361, the Planning Commission may meet virtually or in-person. This meeting of the Arcadia Planning Commission will be conducted virtually. Per the Brown Act, the public will still be provided the ability to make public comments. For members of the public who would like to participate virtually, the meeting will be held via Zoom. The public is also welcome to view this meeting as it takes place on the City’s website at ArcadiaCA.gov/liveplanning or on ACTV (check your local listings). How to Submit Public Comment: 1. Email: Please submit your comments via email to planning@ArcadiaCA.gov by 5:00 p.m. on January 25, 2022. Your comments should be 300 words or less. 2. Zoom: To join the meeting from a phone, tablet, or internet browser please select the meeting link below and enter your name and email. Meeting Link: https://us02web.zoom.us/j/87822632039 3. Phone: To join by telephone, please call the number below and enter the meeting ID. You will remain muted until you are recognized for public comment. Call-in Number: 1(669) 900 6833 or 1(346) 248-7799 or 1(253) 215-8782 Meeting ID: 878 2263 2039 Please contact the Planning Division at planning@ArcadiaCA.gov or at (626) 574-5423 for more information. 作为阿凯迪亚市缓解新冠病毒(COVID-19)传播的一项措施,并根据《布朗法案》和 AB 361,规划委员会可召开虚拟会议 或面对面会议。阿凯迪亚规划委员会的这次会议将以虚拟方式举行。根据《布朗法案》,仍将向公众提供发表评论意见的 机会。对于希望以虚拟形式参加会议的公众,会议将通过 Zoom 召开。我们也欢迎公众在市政府网站 ArcadiaCA.gov/liveplanning 或 ACTV 上旁听会议(请查看您的本地频道列表)。 如何提交公众评论意见: 1.电子邮件: 请通过电子邮件将评论意见发送至 planning@ArcadiaCA.gov,截止时间是 2022 年 1 月 25 日下午 5:00 。您的评论意见不得超过 300 个英文单词。 2.Zoom: 要通过手机、平板电脑或互联网浏览器参加会议,请选择下面的会议链接,并输入您的姓名和电子邮件地址。 会议链接:https://us02web.zoom.us/j/87822632039 3.电话: 要通过电话参加,请拨打以下号码并输入会议代码(meeting ID)。在轮到您发言之前,您的话筒将被静音。 请拨打:1(669) 900 6833 或 1(346) 248-7799 或 1(253) 215-8782 会议代码(meeting ID):878 2263 2039 如希望了解更多信息,请洽规划处:planning@ArcadiaCA.gov 或 (626) 574-5423。 1 Pursuant to the Americans with Disabilities Act, persons with a disability who require a disability related modification or accommodation in order to participate in a meeting, including auxiliary aids or services, may request such modification or accommodation from Planning Services at (626) 574-5423. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to the meeting. 根据《美国残障人法案》的规定,需要提供残障相关调整或便利设施才能参加会议的残障人士(包括辅助器材或服务),可向规划服务部 请求获得此类调整或便利设施,电话号码 (626) 574-5423。请在会前 48 小时通知规划服务部,以便作出合理安排,确保顺利参加会议。 Pursuant to the City of Arcadia’s Language Access Services Policy, limited-English proficient speakers who require translation services in order to participate in a meeting may request the use of a volunteer or professional translator by contacting the City Clerk’s Office at (626) 574-5455 at least 72 hours prior to the meeting. 根据阿凯迪亚市的语言便利服务政策,英语能力有限并需要翻译服务才能参加会议的人可与市书记官办公室联系(电话:626-574-5455 ),请求提供志愿或专业翻译服务,请至少在会前 72 小时提出请求。 CALL TO ORDER ROLL CALL Zi Lin, Chair Kenneth Chan, Vice Chair Brad Thompson, Commissioner Vincent Tsoi, Commissioner Marilynne Wilander, Commissioner SUPPLEMENTAL INFORMATION FROM STAFF REGARDING AGENDA ITEMS PUBLIC COMMENTS (5 minute time limit per person) Each speaker is limited to three (5) minutes per person, unless waived by the Planning Commission. Under the Brown Act, the Commission or Board Members are prohibited from discussing or taking action on any item not listed on the posted agenda. PUBLIC HEARING All interested persons are invited to appear at a public hearing and to provide evidence or testimony concerning any of the proposed items set forth below for consideration. Separate and apart from the applicant (who may speak longer in the discretion of the Commission) speakers shall be limited to five (5) minutes per person. The applicant may additionally submit rebuttal comments, at the discretion of the Commission. You are hereby advised that should you desire to legally challenge in court or in an administrative proceeding any action taken by the City Council regarding any public hearing item, you may be limited to raising only those issues and objections you or someone else raised at the public hearing or in written correspondence delivered to the City Council at, or prior to, the public hearing. 1. Resolution No. 2088 – Approving Conditional Use Permit No. CUP 21-08 with a Categorical Exemption under the California Environmental Quality Act (“CEQA”) to allow a writing center with up to six students at 411 East Huntington Drive, Suite 211 Recommendation: Adopt Resolution No. 2088 Applicant: Vicki Chang 2. Resolution No. 2087 – Recommending that the City Council approve General Plan Amendment No. GPA 21-02 with a Negative Declaration under the California Environmental Quality Act updating the General Plan’s Housing Element for the 2021- 2029 housing cycle 2 Recommended Action: Adopt Resolution No. 2087 Applicant: City of Arcadia CONSENT CALENDAR All matters listed under the Consent Calendar are considered to be routine and can be acted on by one roll call vote. There will be no separate discussion of these items unless members of the Commission, staff, or the public request that specific items be removed from the Consent Calendar for separate discussion and action. 3. Minutes of the December 14, 2021 Regular Meeting of the Planning Commission Recommendation: Approve MATTERS FROM CITY COUNCIL LIASION MATTERS FROM PLANNING COMMISSIONERS MATTERS FROM ASSISTANT CITY ATTORNEY MATTERS FROM STAFF INCLUDING UPCOMING AGENDA ITEMS ADJOURNMENT The Planning Commission will adjourn this meeting to Tuesday, February 8, 2022, at 7:00 p.m. 3 DATE: January 25, 2022 TO: Honorable Chair and Planning Commission FROM: Lisa L. Flores, Planning & Community Development Administrator By: Edwin Arreola, Assistant Planner SUBJECT: RESOLUTION NO. 2088 APPROVING CONDITIONAL USE PERMIT NO. CUP 21-08 WITH A CATEGORICAL EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA ) TO ALLOW A WRITING CENTER WITH UP TO SIX STUDENTS AT 411 EAST HUNTINGTON DRIVE, SUITE 211 Recommendation: Adopt Resolution No. 2088 SUMMARY The Applicant, Vicki Chang, is requesting approval of Conditional Use Permit Application No. CUP 21-08 for a writing center (dba: Advanced Writing Center) to occupy an existing 1,184 square foot unit on the second floor of the Huntington Landmark commercial center at 411 E. Huntington Drive, Suite 211. The proposed writing center will accommodate up to six middle and high school grade students and three instructors. It is recommended that the Planning Commission adopt Resolution No. 2088 (Attachment No. 1) and find this project Categorically Exempt under CEQA and approve Conditional Use Permit No. CUP 21-08, subject to the conditions listed in this staff report. BACKGROUND The writing center is proposed to be located in the Huntington Landmark commercial center that is approximately 3.75 acres and is located on the north side of E. Huntington Drive between Gateway Drive and 5th Avenue. The site is developed with an existing three-story, 52-unit commercial building, two freestanding restaurants, and a three-story parking structure (See Figure 1). The property is zoned C-G (General Commercial) and has a General Plan Land Use Designation of Commercial. The businesses on site consist of various commercial uses such as restaurants, offices, personal services, and retail uses. The 1,184 square foot unit for the proposed writing center is located on the second floor of the existing three-story commercial building and is currently vacant and was previously occupied by Telesonic Voice and Data Solutions. The site is surrounded by 4 CUP 21-08 411 E. Huntington Drive, Ste. 211 January 25, 2022 Page 2 of 10 Figure 1 - Aerial of Subject Site other commercial properties to the north, east, south and west, - refer to Attachment No. 2 for an Aerial Photo with Zoning Information and Photos of the subject property. PROPOSAL The Applicant is requesting a Conditional Use Permit (CUP) to operate a writing center, (dba: Advanced Writing Center) for middle and high school grade students. The writing center will offer one-on-one sessions and individual tutoring focused on remedial consultation in reading and writing for students during after school hours and on weekends. The center will consist of a reception area and four small rooms to be used as offices by employees and classrooms for tutoring (see Figure 2). There will be up to three instructors at any given time and each instructor will tutor a maximum of two students for a total of six students in the center at any given time. The proposed business hours for the writing center are from 3:00 PM to 6:00 PM, Monday through Friday, and on Saturdays and Sundays from 9:00 AM to 6:00 PM. 5 CUP 21-08 411 E. Huntington Drive, Ste. 211 January 25, 2022 Page 3 of 10 Figure 2 Proposed Floor Plan ANALYSIS The Arcadia Development Code allows educational centers in the C-G zone subject to the review and approval of a Conditional Use Permit. The proposed writing center will have up to six students and three employees. As required for all educational uses by the , each classroom will be required to have windows to allow observation from outside of the rooms. A condition has been placed on the project that requires that either windows or glass doors remain unobstructed to allow for easy viewing from the reception area into the classrooms and offices (refer to condition no. 3). The request has been reviewed by the Building and Fire Departments and no concerns were raised. 6 CUP 21-08 411 E. Huntington Drive, Ste. 211 January 25, 2022 Page 4 of 10 For an educational center that serves high school age students, the Development Code requires one parking space for every three students and one space for every employee. With up to six students of high school age and three employees, a total of six parking spaces are required. Since the previous use also required six parking spaces as a retail use, the parking requirement for the proposed writing center is being met. The site is served by a total of 433 parking spaces on site located on a surface lot and three-story parking structure. The unit will have direct access to the parking structure at the rear of the site which typically has an abundance of parking availability throughout the day. Therefore, parking will not be impacted by the proposed use as adequate parking will be provided. FINDINGS Section 9107.09.050(B) of the Development Code requires that for a Conditional Use Permit to be granted, it must be found that all of the following prerequisite conditions can be satisfied: 1. The proposed use is consistent with the General Plan and any applicable specific plan. Facts to Support This Finding: Approval of the writing center is consistent with the Commercial land use designation of the site. The Commercial land use designation is intended to permit a wide-range of commercial uses which serve both neighborhood and citywide markets. The designation allows a broad array of commercial uses, including neighborhood-serving uses such as tutoring or writing centers. The proposed use will occupy a vacant commercial unit and is a use that is complementary to the nearby residential neighborhoods. In addition, the proposed use is a use allowed in the C-G (General Commercial) zone subject to the approval of a Conditional Use Permit. It will not adversely affect the comprehensive General Plan, and it is consistent with the following General Plan goal and policy: Land Use and Community Design Element Policy LU-6.7: Encourage a balanced distribution of commercial development throughout the City, ensuring that neighborhoods and districts have adequate access to local-serving commercial uses. 2. The proposed use is allowed within the applicable zone, subject to the granting of a Conditional Use Permit, and comply with all other applicable provisions of the Development Code and the Municipal Code. Facts to Support This Finding: The site is zoned C-G, General Commercial. Arcadia Development Code Section 9102.03.020, Table 2-8, allows writing centers in the C-G zone subject to the review and approval of a Conditional Use Permit. The site has an adequate number of parking spaces. Therefore, there should be no impacts to the adjacent commercial uses and properties. Lastly, the proposal complies with all other 7 CUP 21-08 411 E. Huntington Drive, Ste. 211 January 25, 2022 Page 5 of 10 applicable provisions of the Arcadia Development Code and the Arcadia Municipal Code. 3. The design, location, size, and operating characteristics of the proposed activity will be compatible with the existing and future land uses in the vicinity. Facts to Support This Finding: The proposed writing center will occupy a 1,184 square foot unit within a three-story commercial building at the Huntington Landmark commercial center. The writing center will be compatible with the various office uses also located on the second floor of the Huntington Landmark. The use will not create an increase in parking from the previous use and adequate parking will be provided for the proposed writing center. The writing center will be open for a short time during the week and the amount of students served by the center will be minimal and will not impact the existing and future land uses in the vicinity. 4. The site is physically suitable in terms of: a. Its design, location, shape, size, and operating characteristics of the proposed use in order to accommodate the use, and all fences, landscaping, loading, parking, spaces, walls, yards, and other features required to adjust the use with the land and uses in the neighborhood; Facts to Support This Finding: The site is physically suitable for the proposed writing center. The use will occupy a vacant unit within an existing multi- commercial center on an improved site. The site is improved with a surface parking lot and three-story parking structure that will provide ample parking for the proposed business. No exterior improvements are required for the writing center. Therefore, the proposed use is suitable for this site. b. Streets and highways adequate in width and pavement type to accommodate public and emergency vehicle (e.g., fire and medical) access. Facts to Support This Finding: The site is located on the north side of E. Huntington Drive between Gateway Drive and 5 th Avenue, which are designated and designed with the capacity to accommodate both public and emergency vehicles. All adjacent and nearby streets are adequate in width and pavement type to carry the traffic that could be generated by the learning center and to support emergency vehicle access. c. Public protection services (e.g., fire protection, police protection, etc.). Facts to Support This Finding: The proposed writing center will be located within an existing commercial unit. Conditions of approval have been included to ensure the writing center will be operated in a safe manner, and not impact public protection services. The request has been reviewed by the Fire Department and Police Department, and neither Department raised concerns. Therefore, no impacts to public protection services are anticipated. 8 CUP 21-08 411 E. Huntington Drive, Ste. 211 January 25, 2022 Page 6 of 10 d. The provision of utilities (e.g., potable water, schools, solid waste collection and disposal, storm drainage, wastewater collection, treatment, and disposal, etc.). Facts to Support This Finding: The subject unit is located within an existing commercial building, which is adequately serviced by existing utilities. The request neither includes new construction, nor will be operated, in a manner that will impact the provision of utilities. Therefore, no impacts to the provision of utilities are anticipated. 5. The measure of site suitability shall be required to ensure that the type, density, and intensity of use being proposed will not adversely affect the public convenience, health, interest, safety, or general welfare, constitute a nuisance, or be materially injurious to the improvements, persons, property, or uses in the vicinity and zone in which the property is located. Facts to Support This Finding: The proposed writing center will not be detrimental to the public health or welfare, or to the surrounding properties. The size and nature of the operation of the use will not negatively affect the existing uses in the surrounding properties. In addition, conditions of approval have been included to mitigate any potential impacts, such as requiring each classroom door to have a window to allow observation from outside of the rooms, and that the use be subject to periodic inspections. ENVIRONMENTAL IMPACT It has been determined that the project qualifies as a Class 1 Categorical Exemption per the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15301 of the CEQA Guidelines for the use of an existing facility (refer to Attachment No. 4). PUBLIC COMMENTS/NOTICE Public hearing notices for this item were mailed to the owners of those properties that are located within 300 feet of the subject property and published in the Arcadia Weekly on January 13, 2022. As of January 21, 2022, staff did not receive any public comments on this project. RECOMMENDATION It is recommended that the Planning Commission adopt Resolution No. 2088 approving Conditional Use Permit No. CUP 21-08 for a new writing center with up to six students and find that the project is Categorically Exempt under the California Environmental Quality Act (CEQA), subject to the following conditions of approval: 1. The use approved by CUP 21-08 is limited to a writing center and shall be operated and maintained in a manner that is consistent with the proposal and plans submitted 9 CUP 21-08 411 E. Huntington Drive, Ste. 211 January 25, 2022 Page 7 of 10 and approved for CUP 21-08. The use shall be subject to periodic inspections, after which the conditions of this Conditional Use Permit may be adjusted after due notice in order to address any adverse impacts to the adjacent streets, rights-of-way, and/or the neighboring businesses, nearby residential uses and properties. 2. No more than six students shall be permitted at any given time. Any changes to the number of students, shall be subject to review and approval by the Planning & Community Development Administrator, or designee, unless significant modifications are proposed; in which case, the application may be referred to the Planning Commission. 3. The learning center shall not operate past 8:00 p.m., everyday. Any changes to the hours of operation, shall be subject to review and approval by the Planning & Community Development Administrator, or designee, unless significant modifications are proposed; in which case, the application may be referred to the Planning Commission. 4. Each classroom or private tutoring room door shall have an unobscured glass window to allow easy viewing from the hallway. The final design and specifications of the door with a glass window shall be reviewed by the Planning & Community Development Administrator, or designee, prior to submitting their plan to Building Services for plan- check. 5. Prior to the issuance of a Certificate of Occupancy from the Building Division, one (1) Automated External Defibrillator (AED) shall be installed. The location of the AED shall be identified on the plans submitted for plan check in Building Services and is subject to review and approval by the Planning & Community Development Administrator, or designee. 6. The plans submitted for Building plan check shall comply with the 2020 Building and Fire Codes as applicable: a. California Building Code b. California Electrical Code c. California Mechanical Code d. California Plumbing Code e. California Energy Code f. California Fire Code g. California Green Building Standards Code h. California Existing Building Code 7. The proposed unit the business will be occupying shall comply with the requirements of all applicable codes for the new occupancy classification. Complete plans, calculations and other specifications shall be submitted to Building Services for review, approval and subsequent permit issuance. The plans, calculations and other specifications shall be prepared by an Architect or Registered Civil/Structural Engineer licensed in the State of California who is qualified to perform said work. 10 CUP 21-08 411 E. Huntington Drive, Ste. 211 January 25, 2022 Page 8 of 10 8. Conditions from the Fire Department: a. A full coverage fire alarm system shall be provided. b. An illuminated exit signage and emergency lighting shall be provided. c. A minimum rated 2A:10BC fire extinguisher shall be provided at an d. All exit doors to the exterior shall be equipped with panic or lever type hardware. Latched or key operated locks are not permitted. e. A knox box shall be provided at an approved location, as determined by the 9. All City requirements regarding disabled access and facilities, occupancy limits, building safety, health code compliance, emergency equipment, environmental regulation compliance, and parking and site design shall be complied with by the property owner/applicant to the satisfaction of the Building Official, City Engineer, Planning & Community Development Administrator, Fire Marshal, and Public Works Services Director, or their respective designees. The changes to the existing facility may be subject to building permits after having fully detailed plans submitted for plan check review and approval by the aforementioned City officials. 10. Noncompliance with the plans, provisions and conditions of approval for CUP 21-08 shall be grounds for immediate suspension or revocation of any approvals, which could result in the closing of the learning center. 11. To the maximum extent permitted by law, Applicant must defend, indemnify, and hold City, any departments, agencies, divisions, boards, and/or commissions of the City, and its elected officials, officers, contractors serving as City officials, agents, employees, and damages and/or claims, actions, or proceedings for damages for personal injuries, including death, and claims for property damage, and with respect to all other actions and liabilities for damages caused or alleged to have been caused by reason of the CUP 21-08 on the Project site, and which may arise from the direct or indirect operations of the Applicant or those of the Ap Project. This indemnity provision applies to all damages and claims, actions, or proceedings for damages, as described above, regardless of whether the City prepared, supplied, or approved the plans, specifications, or other documents for the Project. In the event of any legal action challenging the validity, applicability, or interpretation of any provision of this approval, or any other supporting document relating to the Project, the City will promptly notify the Applicant of the claim, action, or proceedings and will fully cooperate in the defense of the matter. Once notified, the Applicant must indemnify, defend and hold harmless the Indemnitees, and each of them, with respect to all liability, costs and expenses incurred by, and/or awarded against, the City or any 11 CUP 21-08 411 E. Huntington Drive, Ste. 211 January 25, 2022 Page 9 of 10 e City of any such action, Applicant shall provide to City a cash deposit to cover legal fees, costs, and expenses incurred by City in connection with defense of any legal action in an initial amount to be reasonably determined by the City Attorney. City may draw funds from the deposit for such fees, costs, and expenses. Within 5 business days of each and every notice from City that the deposit has fallen below the initial amount, legal team to continue working on the matter. City shall only refund to Developer any unexpended funds from the deposit within 30 days of: (i) a final, non-appealable decision by a court of competent jurisdiction resolving the legal action; or (ii) full and complete settlement of legal action. The City shall have the right to select legal counsel of its choice that the Applicant reasonably approves. The parties hereby agree to cooperate in defending such action. The City will not voluntarily assist in any such third-party challenge(s) or take any position adverse to the Applicant in connection with such third-party challenge(s). In consideration for approval of the Project, this condition shall remain in effect if the entitlement(s) related to this Project is rescinded or revoked, whether or not at the request of the Applicant. 12. Approval of CUP 21-08 shall not be in effect unless the Property Owner and Applicant have executed and filed the Acceptance Form with the City on or before 30 calendar days after the Planning Commission has adopted the Resolution. The Acceptance Form to the Development Services Department is to indicate awareness and acceptance of the conditions of approval. PLANNING COMMISSION ACTION Approval If the Planning Commission intends to approve this proposal, the Commission should approve a motion to approve Conditional Use Permit Application No. CUP 21-08, stating that the proposal satisfies the requisite findings, and adopting the attached Resolution No. 2088 that incorporates the requisite environmental and Conditional Use Permit findings and the conditions of approval as presented in this staff report, or as modified by the Commission. Denial If the Planning Commission intends to deny this proposal, the Commission should approve a motion to deny Conditional Use Permit Application No. CUP 21-08, stating that the finding(s) of the proposal does not satisfy with reasons based on the record, and direct staff to prepare a resolution for adoption at the next meeting that incorporates the If any Planning Commissioner or other interested party has any questions or comments regarding this matter prior to the January 25, 2022, hearing, please contact Assistant Planner, Edwin Arreola, at (626) 821-4334, or by email at earreola@ArcadiaCA.gov. 12 CUP 21-08 411 E. Huntington Drive, Ste. 211 January 25, 2022 Page 10 of 10 Approved: Lisa L. Flores Planning & Community Development Administrator Attachment No. 1: Resolution No. 2088 Attachment No. 2: Aerial Photo and Zoning Information and Photos of the Subject Property Attachment No. 3: Architectural Plans Attachment No. 4: Preliminary Exemption Assessment 13 Attachment No. 1 Attachment No. 1 Resolution No. 20 14 15 16 17 18 19 20 21 22 23 24 25 Attachment No. 2 Attachment No. 2 Aerial Photo Zoning Information Photos of the Subject Property 26 Overlays Selected parcel highlighted Parcel location within City of Arcadia N/A Property Owner(s): Lot Area (sq ft): Year Built: Main Structure / Unit (sq. ft.): C-G Number of Units: C Property Characteristics 1990 67,280 0 Property Owner Site Address:333 E HUNTINGTON DR Parcel Number: 5773-009-069 N/A Zoning: General Plan: N/A Downtown Overlay: Downtown Parking Overlay: Architectural Design Overlay:Yes N/A N/A N/A Residential Flex Overlay: N/A N/A N/A Yes Special Height Overlay: N/A Parking Overlay: Racetrack Event Overlay: This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. Report generated 12-Jan-2022 Page 1 of 1 27 28 29 30 31 32 33 34 35 36 37 38 Attachment No. Attachment No. Architectural Plans 39 40 41 42 Attachment No. Attachment No. 43 Preliminary Exemption Assessment FORM “A” PRELIMINARY EXEMPTION ASSESSMENT 1.Name or description of project:CUP 21-08 Conditional Use Permit with a Categorical Exemption under the California Environmental Quality Act ("CEQA") Section 15301(a) to allow a new writing center of up to six students. 2.Project Location – Identify street address and cross streets or attach a map showing project site (preferably a USGS 15’ or 7 1/2’ topographical map identified by quadrangle name): 411 E. Huntington Dr., Ste. 211 – The business is located on the north side of E. Huntington Dr. between Gateway Dr. and 5th Ave. 3.Entity or person undertaking project: A. B.Other (Private) (1)Name Vicki Chang, Advanced Writing Center (2)Address 6505 N. Muscatel Ave. San Gabriel, CA 91775 4.Staff Determination: The Lead Agency’s Staff, having undertaken and completed a preliminary review of this project in accordance with the Lead Agency's "Local Guidelines for Implementing the California Environmental Quality Act (CEQA)" has concluded that this project does not require further environmental assessment because: a.The proposed action does not constitute a project under CEQA. b.The project is a Ministerial Project. c.The project is an Emergency Project. d.The project constitutes a feasibility or planning study. e.The project is categorically exempt. Applicable Exemption Class: 15301(a) – Class 1 (Use of an existing facility) f.The project is statutorily exempt. Applicable Exemption: g.The project is otherwise exempt on the following basis: h.The project involves another public agency which constitutes the Lead Agency. Name of Lead Agency: Date: January 12, 2022 Staff: Edwin Arreola, Assistant Planner 44 DATE: January 25, 2022 TO: Honorable Chair and Planning Commission FROM: Lisa Flores, Planning & Community Development Administrator Jason Kruckeberg, Assistant City Manager/Development Services Director Jeramie Brogan, Office Coordinator SUBJECT: RESOLUTION NO. 2087 – RECOMMENDING THAT THE CITY COUNCIL APPROVE GENERAL PLAN AMENDMENT NO. GPA 21-02 WITH A NEGATIVE DECLARATION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT UPDATING THE HOUSING ELEMENT FOR THE 2021-2029 HOUSING CYCLE Recommended Action: Adopt SUMMARY The City is required by State law to update its General Plan Housing Element every eight (8) years for certification by the Department of Housing and Community Development. The Housing Element is one of the eight (8) required “elements” of the City’s General Plan, and it sets forth goals, policies and programs that address future housing needs for all income levels over a planning period of 2021-2029 which coincides with a unit count established by the Regional Housing Needs Assessment (RHNA). The RHNA is mandated by State Housing Law as part of the periodic process of updating housing elements of the General Plan, and Arcadia was allocated 3,214 housing units. It is recommended that the Planning Commission adopt Resolution No. 2087 (Attachment No. 1), recommending that the City Council adopt a Negative Declaration and approve General Plan Amendment No. GPA 21-02, updating the General Plan’s Housing Element. BACKGROUND In January of 2021, the City retained the services of Kimley Horn to help assist with updating the Housing Element. The City was also awarded a Local Early Action Planning Grant (“LEAP”) in the amount of $150,000 to help with this Housing Element Update. 45 Housing Element Update January 25, 2022 Page 2 of 18 State law requires that all cities update their Housing Element once every eight (8) years to be in compliance with the guidelines of the Office of Housing and Community Development (“HCD”), and the planning periods are sometimes referred to as “cycles.” The City’s current Housing Element covers the planning period extending from 2014 to 2021, which is referred to as the “5th Housing Element cycle” in reference to the five required updates that have occurred since the comprehensive revision to State law in 1980. All cities in the Southern California Association of Governments (“SCAG”) region are required to prepare a Housing Element Update for the 6th planning cycle, which spans over the 2021-2029 period. The SCAG region includes Los Angeles, Orange, Riverside, San Bernardino, Ventura, and Imperial counties. The 6th Cycle Update requires a review of the current Housing Element, which was adopted in 2013, to evaluate the effectiveness of the current housing programs, existing goals and policies, and to identify the revisions that must be made to bring the Housing Element into compliance with current State law and HCD requirements. The Update will also need to be internally consistent with the City’s General Plan, which was adopted in 2010, and with the Development Code, which underwent a comprehensive update in 2016. The Housing Elements in the Southern California Association of Governments (SCAG) were due by October 15, 2021. HCD provides a 120-grace period after the deadline for local adoption, and given the complexity of the 6th Cycle Update, many cities are utilizing this additional time. HOUSING ELEMENT 2021-2029 The Housing Element consists of three components, each of which can be found in Attachment 2 in redlined form, showing responses to the comments received from HCD. 1. The Housing Element itself (Chapter 5 of the General Plan), which sets forth the City’s housing goals and policies to address identified housing needs 2. The General Plan Implementation Plan (Chapter 10), which identifies specific programs to be pursued to achieve Housing Element goals and policies 3. The Housing Element Technical Background Report, which includes the following: x An analysis of the City’s population, household and employment base, and characteristics of the housing stock. x A review of potential market, governmental, and environmental constraints on production, maintenance, and affordability of housing. x An analysis of fair housing issues and actions to foster inclusive communities to achieve racial equity, fair housing choice, and opportunity for all. x An evaluation of the land and financial resources available to address the City’s identified housing needs. 46 Housing Element Update January 25, 2022 Page 3 of 18 x An analysis of strategies for housing sites identified by income category to meet the City’s RHNA allocation. x A summary of the community outreach efforts undertaken that focused on issues relating to residential land uses and housing needs. x A review of past accomplishments under the previously adopted Housing Element. The development of the 2021–2029 Housing Element is guided by the following principles: ƒ Balanced Growth and Development The General Plan establishes a balance and mix of land uses that promote economic growth and maintain a 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. ƒ Neighborhood Character Arcadia’s single-family and multifamily residential neighborhoods have given the City its identity 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. ƒ 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. 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 is unique because it requires review and certification by the State Department of Housing and Community Development (HCD). State law requires Housing Elements to be updated on a regular basis to reflect a community’s changing housing needs. This Housing Element is an eight-year plan covering 2021 – 2029, 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: ƒ Providing adequate housing sites to achieve a variety of housing ƒ Preserving and improving housing and neighborhoods ƒ Assisting in the provision of affordable housing ƒ Removing governmental constraints to housing developments 47 Housing Element Update January 25, 2022 Page 4 of 18 ƒ Promoting fair and equal housing opportunities Another component of the Housing Element is the Regional Housing Needs Assessment (RHNA). RHNA is the process by which each city is assigned a share of the region’s need for additional housing units during the next Housing Element planning period (2021- 2029). RHNA allocations are determined for the City by SCAG based on criteria established by State law. The City’s allocation is as follows: Income Category Number of Units Percentage Very Low Income Units 1,102 34% Low Income Units 570 18% Moderate Income Units 605 19% Above-Moderate Income Units 937 29% Total 3,214 100% For the 2014-2021 planning period (5th cycle), the City was allocated a total of 1,054 housing units. Between January 1, 2014, and December 31, 2019, the City issued permits for a total of 412 housing units towards meeting the City’s RHNA allocation for the 2014- 2021 planning period. The 2014-2021 RHNA allocation was as follows and nearly all of the 412 units provided fall into the “above-moderate” category: Income Category Number of Units Percentage Very Low Income Units 276 26% Low Income Units 167 16% Moderate Income Units 177 17% Above-Moderate Income Units 434 41% Total 1,054 100% The City’s RHNA allocation of 3,214 units for the 2021-2029 planning period is approximately three times higher than the previous allocation of 1,054 units for the 2014- 2021 planning period. This is a result of the significant increase in HCD’s projected housing need for the Southern California Region. The regional housing need for the 2021- 2029 planning period is 1,341,827 housing units, compared to 412,137 housing units for the 2014-2021 planning period. Given the significant increase in regional need, cities received much higher allocations through SCAG’s distribution process. In addition, Arcadia received a much higher percentage of Very Low Income Units, the result of SCAG’s methodology to allocate these units to areas with good transportation options and transit corridors, among other criteria. The Housing Element Update must demonstrate site development capacity to facilitate the construction of a variety of housing types for all income levels. It is important to note that the City is not responsible for the production of these units; rather, the City is obligated to provide adequate sites for the development of units through either 48 Housing Element Update January 25, 2022 Page 5 of 18 appropriate General Plan land use and zoning designations, or through future zoning changes to accommodate these units. Whether or not housing actually gets built, and what type of housing gets built, is largely up to the landowner and the housing market. However, as mentioned, the City is responsible to provide programs and policies to facilitate new housing development, especially for low and very-low income housing. In order to react to the City’s RHNA numbers, the first consideration is to account for projects that are either: 1) entitled; 2) issued building permits; or 3) in the application stage with Planning, that will count towards the RHNA after July 2021. These projects within the “pipeline” are considered the City’s baseline unit count. Within this baseline, the City also receives credit for underutilized properties that allow residential uses, and existing and potential Accessory Dwelling Units (ADUs) throughout the City. Along these lines, it has been determined based on past performance that it is appropriate to anticipate the development of 296 accessory dwelling units during the 6th planning cycle. Based on the projects within the pipeline and ADUs, the baseline analysis results in a total of 2,545 housing units that could potentially be constructed in the City. This satisfies the housing units for above moderate-income level, but for not for the moderate, low, and very low income categories. As a result, to make up this shortfall, there are seven (7) housing strategies that are being proposed to meet the City’s RHNA allocation, as discussed below under the Analysis section of the report. Baseline Analysis Summary Table ANALYSIS As discussed above, in order to meet the City’s RHNA requirement, additional housing programs and strategies are needed beyond the units in the pipeline expected to be built. The City’s General Plan Implementation Plan (Chapter 10) lists and describes what policies and programs will need to be implemented over the next few years to meet the State’s requirements. In addition, the Technical Background Report also provides detailed analysis and description of re-zoning strategies needed to meet the RHNA allocation of 3,214 units. It is the City’s goal is to implement most of these changes within the first three (3) years after the Housing Element Update has been adopted, with the exception of the 49 Housing Element Update January 25, 2022 Page 6 of 18 Inclusionary Housing Policy. Each of the primary recommended strategies is described below, along with an analysis of the potential number of units that could potentially result following the implementation of the strategy. It is important to remember that all of these strategies are continuations or expansions of existing zoning designations that already exist in Arcadia. In some cases, it is recommended to expand existing zoning or apply a higher density to certain areas, but the overall strategy is to focus additional units and density into areas that can support it, and to protect single-family neighborhoods. 1. Strategy No. 1 - Downtown Mixed Use (DMU) Expansion The City has identified General Commercial and Commercial Manufacturing zoned properties in and adjacent to Downtown Arcadia as an opportunity to introduce high density residential flex overlays to expand existing Downtown Mixed-Use zoning. Expanding the opportunity for high density residential in the downtown area is compatible with adjacent Central Business District and Downtown Mixed-Use zoned parcels which will allow up to the maximum density of 80 du per/acre. Downtown Mixed Use Expansion The City has identified 30 sites that are currently commercially zoned to be rezoned to Downtown Mixed-Use at 80 du/acre with a 1.0 floor area ratio for non-residential uses. Of the 39.22 acres of land identified as part of this strategy, 37.36 acres met the criteria required by the State for sites projected to accommodate Low and Very Low income units. An assumed density of 64 du/acre was applied to calculate the theoretical capacity of each site. The theoretical capacity of these sites is projected at 2,405 units. However, a planning-level redevelopment percentage of 50 percent has been applied to project a more feasible assumption of future housing development on Mixed-Use sites. This assumes that only half of the potential parcels will redevelop in this manner. The realistic capacity of these sites is projected at 1,214 units, 305 of which are projected to be affordable to Low and Very Low income households. Downtown Mixed-Use Overlay The City has identified 75 sites that are currently commercially zoned to implement a Downtown Mixed-Use Overlay that will allow for residential uses in a mixed-use development format at a maximum density of 80 du/acre with a 1.0 floor area ratio for non-residential uses. Of the 18.19 acres of land identified as part of this strategy, 2.69 acres met the criteria required by the State for sites projected to accommodate Low and Very Low income units. An assumed density of 64 du/acre was applied to calculate the theoretical capacity of each site. The theoretical capacity of these sites is projected at 352 units. However, it is assumed that only 50 percent of the properties will redevelop in this manner to project a more feasible assumption of future housing development on Mixed-Use sites. The realistic capacity of these sites is projected at 266 units, 69 of which are projected to be affordable to Low and Very Low income households. 50 Housing Element Update January 25, 2022 Page 7 of 18 The map and table below show the area of proposed changes, and a total of 1,480 new net units are possible from the DMU Expansion and DMU Overlay. The implementation of these zone changes will occur within 3 years of the adoption of the HEU. Income Category Capacity to Accommodate RHNA Low and Very Low 374 Moderate 148 Above Moderate 958 Total New Net Units 1,480 2. Strategy No. 2 – Mixed-Use Upzone The City has identified the Mixed-Use zone as an opportunity to increase density to promote the development of more residential units which could be supported by adjacent uses. The proposal is to increase the maximum density from 30 du/acre to 50 du/acre. There are 106 sites or 36.15 acres that are within the Mixed-Use zone. Of the 36.15 acres of land, approximately 17.26 acres met the criteria required by the State for sites projected to accommodate Low and Very Low income units. An assumed density of 40 du/acre was applied to calculate the theoretical capacity of each site. The theoretical capacity of these sites is projected at 817 units. Again, a redevelopment percentage of 50 percent has been 51 Housing Element Update January 25, 2022 Page 8 of 18 applied to project a more feasible assumption of future housing development on Mixed- Use sites. The realistic capacity of these sites is projected at 477 units, 124 of which are projected to be affordable to Low and Very Low income households. The map and table below show the area of proposed changes, and a total of 477 new net units are possible following the Mixed-Use Upzone. The implementation of these zone changes will occur within 3 years of the adoption of the HEU. Income Category Capacity to Accommodate RHNA Low and Very Low 124 Moderate 51 Above Moderate 302 Total New Net Units 477 3. Strategy No. 3 – Las Tunas/Live Oak Residential Flex Overlay The Las Tunas and Live Oak Corridor has an opportunity to both increase density and introduce residential density on viable commercial properties. The adjacent Mixed-Use zoning and access to transit supports the increase of residential uses in the corridor. The City identified two areas along the corridor with opportunities based on adjacent use and densities to introduce Residential Flex Overlays within. 52 Housing Element Update January 25, 2022 Page 9 of 18 Las Tunas Residential Flex Overlay There are 31 sites on Las Tunas Dr. that are currently commercially zoned to implement a Residential Flex Overlay that will allow for residential uses at a maximum density of 60 du/acre. Of the 15.92 acres of land identified as part of this strategy, 12.07 acres met the criteria to accommodate Low and Very Low income units. Parcels within the Las Tunas corridor have the capacity to accommodate 609 units of development at an assumed density of 48 du/acre, 155 of which are projected to accommodate housing affordable to Low and Very Low income households. Live Oak Residential Flex Overlay There are 26 sites on Live Oak Ave that are currently commercially zoned to implement a Residential Flex Overlay that will allow for residential uses at a maximum density of 50 du/acre. Of the 10.60 acres of land identified as part of this strategy, 3.65 acres met the criteria to accommodate Low and Very Low income units. Parcels within the Las Tunas corridor have the capacity to accommodate 185 units of development at an assumed density of 40 du/acre, 48 of which are projected to accommodate housing affordable to low and very low income households. The map and table below show the area of proposed changes, and a total of 794 new net units are possible from both Overlays. The implementation of these zone changes will occur within 3 years of the adoption of the HEU. 53 Housing Element Update January 25, 2022 Page 10 of 18 Income Category Capacity to Accommodate RHNA Low and Very Low 203 Moderate 82 Above Moderate 509 Total New Net Units 794 4. Strategy No. 4 – General Commercial (C-G) Flex Overlay The General Commercial zoned properties are another area for redevelopment opportunity where underutilized, smaller scale commercial development can transition to support residential development in cases where it is more desirable than a struggling commercial use. The City identified 76 sites (84.38 acres) as part of the C-G Residential Flex Overlay Focus Area that will allow for residential uses at maximum density of 30 du/acre. However, an assumed density of 24 du/acre was applied to calculate the theoretical capacity of each site. The theoretical capacity of these sites is projected at 1,983 units. It was further assumed that only 50 percent of the area would redevelop over time to project a more feasible assumption of future housing development in this Focus Area. The realistic capacity of these sites is projected at 992 units, 252 of which are projected to be affordable to Low and Very Low income households. The map and table below show the area of proposed changes, and the implementation of these zone changes will occur within 3 years of the adoption of the HEU. 54 Housing Element Update January 25, 2022 Page 11 of 18 Income Category Capacity to Accommodate RHNA Low and Very Low 252 Moderate 100 Above Moderate 640 Total New Net Units 992 5. Strategy No. 5 – R-3 Upzone The R-3 Zone has been identified by the City as an area with the opportunity to support increased density from 30 du/acre to 40 du/acre that is compatible with adjacent higher density residential uses and other uses that support residential development. Higher density within this Focus Area can be expected to accommodate lower income units. There are 355 sites or 236.28 acres that are within the R-3 zone. Of the 236.28 acres of land, approximately 177.21 acres met the criteria to accommodate Low and Very Low income units. An assumed density of 32 du/acre was applied to calculate the theoretical capacity of each site. The theoretical capacity of these sites is projected at 2,715 units. Through the history of redevelopment of R-3 sites, additional incentives for affordable housing, and inclusionary policy programs, a reasonable redevelopment of 25 percent has been applied. This redevelopment percentage will project a more feasible assumption of future housing development on non-vacant sites with existing multi-family housing. The 55 Housing Element Update January 25, 2022 Page 12 of 18 realistic capacity of these sites is projected at 810 units, 213 of which are projected to be affordable to Low and Very Low-income households. The map and table below shows the area of proposed changes, and the implementation of these zone changes will occur within 3 years of the adoption of the HEU. Income Category Capacity to Accommodate RHNA Low and Very Low 213 Moderate 84 Above Moderate 513 Total New Net Units 810 6. Strategy No. 6 – Arcadia Golf Course (Par 3) Through a Specific Plan or similar zoning tool, the Arcadia Golf Course can accommodate approximately 192 units. The City owns the Arcadia Par 3 Golf Course and is currently negotiating with development teams to evaluate the future sale of the property and/or redevelopment of the site. It is anticipated that the City will enter into a Purchase and Sale Agreement and a Development Agreement with a selected Development Team on the entitlement of the site at some point during this housing cycle. Per the requirements 56 Housing Element Update January 25, 2022 Page 13 of 18 of the SLA, a portion of the project will be dedicated to affordable housing units (between 15% and 25% of all units developed). In addition, the resulting project will also likely retain a substantial open space component and provide market-rate units in a Specific Plan format. The projected number of units in this area reflect the current proposals under evaluation, not the number of units the final approved development will include. The table below displays the projected assumptions for net unit yield based on expressed developer interest. Income Category Capacity to Accommodate RHNA Low and Very Low 48 Moderate 72 Above Moderate 72 Total Units – Specific Plan 192 7. Strategy No. 7 - Inclusionary Housing Policy The City has a substantial RHNA obligation to provide affordable housing during this next planning cycle to encourage and facilitate construction for housing that is below market- rate. As part of this Housing Element Update, the Planning Division will investigate inclusionary housing policy options as an additional means to provide a variety of housing types and opportunities for very low, low- and moderate-income households in Arcadia. This will include analysis of a variety of inclusionary housing policy options, standards, requirements and regulations to determine the best course of action. Based upon this 57 Housing Element Update January 25, 2022 Page 14 of 18 initial assessment, the City Council will determine the appropriateness and application of inclusionary policies, and adopt policies, programs or regulations that will produce housing opportunities affordable to very low, low and moderate-income households. According to the Implementation Plan, this will be approved within 9 months after the adoption of the Housing Element Update. With adoption of the primary strategies listed above within the next three years, along with the natural development of units within the pipeline, the City of Arcadia will meet its RHNA obligations. These strategies have been detailed in the draft documents created to date, and have been presented to both the community and HCD over time. The public outreach efforts are detailed in the section below. PUBLIC OUTREACH EFFORTS AND COMMENTS FROM HCD During the ongoing pandemic, public outreach efforts for Planning projects is challenging. Nevertheless, a number of outreach efforts have been conducted for the Housing Element Project to engage the public, provide feedback loops, and provide timely information. Each of the public outreach components of the Housing Element Update are described below, and all the summaries can be found on the City’s website, a link to which is provided in the first bullet below. xx Dedicated website for the Housing Element Update (ArcadiaCA.gov/housing) with all project materials, including summaries from community workshops and the draft public review documents x Frequently Asked Questions Page/Fact Sheet including detailed answers to commonly asked questions x Community Survey, in English and Chinese (June 21 – August 6, 2021): The City launched an online community in June, where participants were asked to consider potential policies and programs to include in the Housing Element. A total of 759 persons that participated in the survey. x Postcard mailer to all property owners & residential tenants in the City, with information on the Update and a link to the Community Survey. x Community Workshop No. 1 (June 14, 2021): Outreach presentation and informational videos (English and Chinese) consisting of an overview of the RHNA process, the tentative schedule of the Housing Element Update and information on understating of the RHNA process, and how to get informed about future opportunities for community participation. 58 Housing Element Update January 25, 2022 Page 15 of 18 xx Community Workshop No. 2 (September 23, 2021): Participants learned about the Housing Element Update process and the City’s progress, heard an overview of the community survey results, and learned about potential strategies to accommodate the new housing units required by the State through the Regional Housing Needs Assessment (RHNA). The meeting was presented in English and Chinese. x Release of Draft Housing Element (September 30, 2021 & December 21, 2021): Notification of the availability of the Draft Housing Element (September 30, 2021), and the Revised Draft Housing Element (December 21, 2021), was emailed to interested parties, community stakeholders, and shared via the City’s social media channels. x Social Media and Digital Media Engagement, in English and Chinese: Staff engaged with the community throughout the Update process and posted updates on the City website and across four separate social media channels including Twitter and WeChat. Posts were made weekly and/or bi-weekly during major Update-related events. x City Newsletters and Print Publications: Through the planning process, the City posted information related to the Housing Element update in the City’s 2021 Spring and Summer newsletters, and five monthly “Hot Sheet” publications. Comments from HCD on Draft 2021-2029 Housing Element The public draft Housing Element was submitted to HCD on September 30, 2021, and it was released for public review from September 30, 2021 to November 1, 2021 to give community members and stakeholders an opportunity to provide input. . On November 29, 2021, the City received comments from HCD in response to submittal of the Draft Housing Element – refer to Attachment No. 3. This letter outlines the changes and/or additions that HCD has raised to ensure certification of the element. Below is a summary of the primary changes that were made to the draft Housing Element based on the comment letter from HCD. x Added additional detail on Special Needs populations in Arcadia and how the Housing Element Programs can serve Special Needs Populations. 59 Housing Element Update January 25, 2022 Page 16 of 18 xx Further review of land-use controls, permitting procedures, local ordinances, and housing for persons with disabilities. x Added additional examples of past performance to justify sites inventory. x Increase affordability assumption based on increase in programs to incentivize the development of affordable housing. x Revised timelines and added programs to support a variety of housing types. x Refined maps and included additional comparative analysis between region and City. A complete response to the HCD comments was provided in a matrix – refer to Attachment No. 3 of this report. The matrix outlines the entirety of the changes that were made to the Draft Housing Element in response to the comments received from HCD during their review. The redlined versions of the various sections of the Housing Element includes the revisions made to the documents in response to HCD comments – refer to Attachment No. 2. These draft documents were resubmitted back to HCD on December 21, 2021. Both the original and redlined version are on the City’s website at www.arcadiaca.gov/housing. The proposed Strategies under the Analysis reflect all the recent changes. FINDINGS The following findings are recommended to be made in support of the amendments to the General Plan for the Housing Element and Implementation Plan. 1. The proposed action is consistent with the goals, policies, and actions of the General Plan. The Housing Element would make the General Plan consistent with state law requirements per Government Code Section 65580 that requires the Housing Element to be updated every eight years upon the adoption of a region’s Regional Housing Needs Allocation (RHNA). The Housing Element Update identifies goals, policies, and implementation programs addressing housing opportunities, removal of governmental constraints, improving the condition of existing housing and providing equal housing opportunities for all Arcadia residents. These goals, policies and program actions further the City’s overall policy goal to inspire a more diverse, sustainable, and balanced community by implementing strategies and programs that contribute to economic and socially diverse housing opportunities that preserve and enhance Arcadia’s character. 2. The proposed action would not be detrimental to the public interest, health, safety, convenience, or welfare of the City. 60 Housing Element Update January 25, 2022 Page 17 of 18 The proposed amendments are in the public interest and reflect the input of residents, decision makers, and other stakeholders in the community. No zone changes are proposed under the Housing Element Update that would reduce or compromise existing standards that protect the health, safety or general welfare of the City. The Initial Study/Negative Declaration for the Housing Element Update analyzed all the significant environmental impacts of all candidate housing sites associated with the proposed 6th Cycle Housing Element Update, and it was determined that all the potential impacts would be less than significant. Therefore, the proposed General Plan amendment for the Housing Element Update would not be detrimental to the public health and welfare. ENVIRONMENTAL ANALYSIS The proposed project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA) and CEQA Guidelines. An Initial Study/Negative Declaration (IS/ND) has been prepared for the project for the City, as the lead agency. The IS/ND was prepared consistent with the requirements of the California Environmental Quality Act (CEQA) on the basis that there was no substantial evidence that there may be significant environmental impacts on specific environmental areas – refer to Attachment No. 4. The IS/ND was made available for public review from September 30, 2021 to November 1, 2021. A Notice of Intent to adopt the MND was published in the newspaper on September 29, 2021, posted on the City’s webpage, and posted at the L.A. County Clerk’s office on September 30, 2021. A copy of the IS/ND was made available on the City’s webpage, at the Planning Division office, and at the library. During this time period, public agencies, organizations, and the public in general were afforded the opportunity to review the Draft IS/MND, and submit written comments regarding the documents and the proposed project. The City received three comment letters from the following agencies – refer to Attachment No. 4. 1. Los Angeles County Department of Regional Planning, dated December 23, 2021. The comments and their responses do not change the conclusion of the IS/ND. 2. Los Angeles County Sanitation District, dated January 4, 2022. The comments and their responses do not change the conclusion of the IS/ND. 3. California Fish & Wildlife, dated January 18, 2022. In their letter, the California Fish & Wildlife recommended measures and comments to the City to ensure the Project will not create any significant impacts to specifically the golf course since it could 61 Housing Element Update January 25, 2022 Page 18 of 18 impact an endangered species, known as Bell’s Vireo. Given that there is no real project proposed at the Arcadia Golf Course, and the City is not proposing to rezone that property as part of this Housing Element Update effort at this time, the City intends to acknowledge the information that has been provided within the Response to Comments, as part of the IS/ND. Any future housing projects on any of the candidate sites will undergo a complete environmental review under CEQA RECOMMENDATION It is recommended that the Planning Commission adopt Resolution No. 2087 recommending that the City Council adopt a Negative Declaration and approve General Plan Amendment No. GPA 21-02, updating the General Plan’s Housing Element. The City Council is scheduled to consider this item at its February 15, 2022 meeting. Should the Council adopt the Housing Element Update, it will be sent to HCD for certification. If HCD has further substantive comments and does not certify the Housing Element, it will return to the Planning Commission and City Council for further review. Approved: Lisa Flores Planning & Community Development Administrator Attachment No. 1: Resolution No. 2087 Attachment No. 2: Redlined versions of the Draft HEU, Implementation Plan, and Technical Background Report Attachment No. 3: Comment letter from HCD and Matrix with all the proposed changes Attachment No. 4: Comment letters from Agencies and Draft Initial Study/MND 62 Attachment No. 1 Attachment No.1 Resolution No. 2087 63 64 65 66 67 Attachment No. 2 Attachment No.2 Redlined versions of the Draft HE, Implementation Plan, and Technical Background Report 68 Chapter 5: Housing Element Arcadia General Plan Introduction During the 1990s to today, Arcadia has experienced a continuing shift in the age structure and household composition of its population. 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. 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 neighborhoods. Because Arcadia 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, the extension of the Gold Line light rail service to Downtown Arcadia in the past decade has led to a number of mixed-use and urban housing projects. In this cycle, the City plans to continue encouraging transit-oriented development and increasing higher-intensity uses. 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). 69 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. 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: ƒ The Housing Element itself, which sets forth the City’s housing goals and policies to address identified housing needs ƒ The General Plan Implementation Plan, which identifies specific programs to be pursued to achieve Housing Element goals and policies ƒ The Housing Element Technical Background Report, which includes the following: x A summary of the community outreach efforts undertaken that focused on issues relating to residential land uses and housing needs x An analysis of the City’s population, household and employment base, and characteristics of the housing stock x A review of potential market, governmental, and environmental constraints on production, maintenance, and affordability of housing x An analysis of fair housing issues and actions to foster inclusive communities to achieve racial equity, fair housing choice, and opportunity for all. x An evaluation of the land and financial resources available to address the City’s identified housing needs x An analysis of strategies for housing sites identified by income category to meet the City’s RHNA allocation x A summary of the community outreach efforts undertaken that focused on issues relating to residential land uses and housing needs x A review of past accomplishments under the previously adopted Housing Element Achieving Our Vision 70 Arcadia General Plan – December 2013 Housing Element | i Development of the 2021–2029 Housing Element is guided by the following principles: ƒ Balanced Growth and Development The General Plan establishes a balance and mix of land uses that promote economic growth and maintain a 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. ƒ Neighborhood Character Arcadia’s single-family and multifamily residential neighborhoods have given the City its identity 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. ƒ 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. 71 Planning Framework for Housing 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 every eight years to reflect a community’s changing housing needs. This Housing Element updates the previous 2013 – 2021 Housing Element to reflect evolving needs, priorities, resources, and conditions in the City. This Housing Element covers the planning period of October 15, 2021 through October 31, 2029. State planning law mandates jurisdictions within the Southern California Association of Governments (SCAG) region to adopt a Housing Element certified by HCD within 120 days of the statutory deadline (October 15, 2021. The 2021 – 2029). The Housing Element will include housing-related goals, policies, and programs to address the existing and projected future housing needs. Section 65580 of the California Government Codes describes the State’s housing goals as follows: ƒ 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. ƒ 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. ƒ The provision of housing affordable to low and moderate income households requires the cooperation of all levels of the government. ƒ 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. ƒ 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 which: ƒ Ensures that counties and cities recognize their responsibilities in contributing to the attainment of the state housing goal ƒ Ensures 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 72 Arcadia General Plan – December 2013 Housing Element | i ƒ Recognizes 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 ƒ Ensures that each local government cooperates with other local governments in order to address regional housing needs Role of the Housing Element The Housing Element is one of the seven eight General Plan Elements required by the State of California. It is required to be consistent with other Elements of the General Plan. The Housing Element is unique because it requires review and certification by the State Department of Housing and Community Development (HCD). State law requires Housing Elements to be updated on a regular basis to reflect a community’s changing housing needs. This Housing Element is an eight-year plan covering 2021 – 2029, 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: ƒ Providing adequate housing sites to achieve a variety of housing ƒ Preserving and improving housing and neighborhoods ƒ Assisting in the provision of affordable housing ƒ Removing governmental constraints to housing developments ƒ 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. 73 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 46.21 percent of the housing units in Arcadia were built prior to 1970, making many of these close to or over 40 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. From 2018 to 2021, Code Enforcement staff indicated that there were 4,419 cases property maintenance cases in Arcadia. Approximately 2,367 of these cases were related to housing maintenance. Per the City’s Code Enforcement data, there are four properties in the City that would be considered substandard. Table H-1: Age of Housing Stock Year Built % of All Housing Units Built 2014 or later 1.2% 2010 to 2013 1.5% 2000 to 2009 6.1% 1990 to 1999 7.8% 1980 to 1989 10.1% 1970 to 1979 13.2% 1960 to 1969 15.1% 1950 to 1959 23.0% 1940 to 1949 13.9% 1939 or earlier 8.1% Source: American Community Survey, 5-Year Estimates, 2019. Regardless of the presence 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 2010, 2015, and 2021. As shown in Table H-2, the majority of housing units in Arcadia (70 percent in 2021) are single-family homes, while multifamily housing comprises 30 percent of the housing stock. Since 2010, the City’s housing stock added has grown in all categories of housing stock except in the mobile homes categories. Multifamily housing has seen the largest increase from 2010 to 2021 (7 percent). According to the State Department of Finance, the City’s housing stock grew by three percent between 2010 and 2021. 74 Arcadia General Plan – December 2013 Housing Element | i Table H-2: Housing Unit Types Housing Type 2010 2015 2021 2010- 2021 % Change in Units # of Units % of Total # of Units % of Total # of Units % of Total Single-Family Detached 12,641 61.11% 12,697 61% 12,799 60% 1% Single-Family Attached 2,124 10.27% 2,124 10% 2,124 10% 0% Total Single-Family 14,765 71.38% 14,821 71% 14,923 70% 1% Multifamily 2-4 Units 1,097 5.30% 1,171 6% 1,359 6% 19% Multifamily 5+ Units 4,824 23.32% 4,821 23% 5,007 24% 4% Total Multifamily 5,921 28.62% 5,992 29% 6,366 30% 7% Mobile Homes, Trailer & Other 0 0.00% 0 0% 0 0% 0% Total All 20,686 100% 20,813 100% 21,289 100% 3% Source: California Department of Finance, 2010, 2015, 2021. 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. Residential mobility is influenced by tenure, with ownership housing evidencing a much lower turnover rate than rental housing. According to the 2019, 5-Year American Community Survey, about 40.5 percent of Arcadia households were renters and 59.5 percent owned their homes. 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 2019, the US Census American Community Survey reported aa 4.0 percent vacancy rate for rental units in Arcadia of 4.0 percent and a 1.5 percent vacancy rate for owner- occupied units in Arcadia as shown in Table H-3. The City had an overall vacancy rate of 8.7 percent in 2019. Lower vacancy rates increase competition for housing and may result in higher housing costs that can potentially reduce housing opportunities for lower income households. According to the California Department of Finance, the overall vacancy rate of Arcadia in January 2021 was 6.3 percent.1 This rate is similar to the County’s vacancy rate of 6.4 percent in 2021. The 2021 vacancy rates for surrounding cities were projected as follows: Pasadena at 7.9 percent, Monrovia at 5.8 percent, and El Monte at 4.2 percent. While the City of Arcadia’s vacancy rate is slightly higher than the communities of Monrovia and El Monte, Arcadia’s vacancy rate is similar to the County’s vacancy rate of 6.4 percent in 2021. Table H-3: Occupied Housing Units in 2019 Occupancy Estimate Percent Total housing units 21,386 100% Occupied housing units 19,520 91.30% Vacant housing units 1,866 8.70% Homeowner vacancy rate - 1.50% Rental vacancy rate - 4% 1 https://www.dof.ca.gov/Forecasting/Demographics/Estimates/e-5/ 75 Median Home Prices In 2019, the median price of all homes sold in Arcadia was $1,097,600 (Table H-4). This was 88.2 percent higher than the median home value in the County of Los Angeles in the same year ($583,200). Pasadena comes the closest to Arcadia’s median home value at $785,700. Overall, the median home price in Los Angeles County and surrounding areas are much lower than in Arcadia (See Table H-4). Table H-4: Median Home Values County/City/Area 2019 Median Home Value % Difference from County Arcadia $1,097,600 88.20% El Monte $454,900 -22.00% Monrovia $663,400 13.75% Pasadena $785,700 34.72% Los Angeles County $583,200 0% Source: American Community Survey, 5-Year Estimate, 2019. Overpayment for Housing State and federal standards specify that households spending more than 30 percent of gross annual income on housing experience a 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. In Arcadia, 28 percent of renter and 28 percent of owner households experience housing cost burden (as reported by the federal Department of Housing and Urban Development). Table H-5: Overpayment for Housing Income by Cost Burden* Owner Renter Total Cost Burden > 30% % of Owner HH Cost Burden > 50% % of Owner HH Cost Burden > 30% % of Renter HH Cost Burden > 50% % of Renter HH Household Income is less-than or = 30% 725 20.28% 575 29.04% 1,120 31.46% 1,100 56.12% 3,520 Household Income >30% to less-than or = 50% HAMFI 605 16.92% 455 22.98% 1,095 30.76% 655 33.42% 2,810 76 Arcadia General Plan – December 2013 Housing Element | i Household Income >50% to less-than or = 80% HAMFI 605 16.92% 470 23.74% 775 21.77% 170 8.67% 2,020 Household Income >80% to less-than or = 100% HAMFI 220 6.15% 135 6.82% 175 4.92% 35 1.79% 565 Household Income >100% HAMFI 1,420 39.72% 345 17.42% 395 11.10% 0 0 2,160 Total 3,575 - 1,980 - 3,560 - 1,960 - 11,075 Source: Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2013-2017. * Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. Note: HAMFI = HUD Area Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. HAMFI will not necessarily be the same as other calculations of median incomes (such as a simple Census number), due to a series of adjustments that are made. 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: ƒ Housing needs resulting from population growth, both in the City and the surrounding region ƒ Housing needs resulting from the overcrowding of units ƒ Housing needs that result when households pay more than they can afford for housing ƒ 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 2013-2017, the most up-to-date information available) in addition to the 5-year American Community Census from 2019 provides detailed information on housing needs by income level for different types of households in Arcadia. The CHAS defines housing problems to include: ƒ Units with physical defects (lacking complete kitchen or bathroom) 77 ƒ Overcrowded conditions (housing units with more than one person per room) ƒ Housing cost burden, including utilities, exceeding 30 percent of gross income ƒ Severe housing cost burden, including utilities, exceeding 50 percent of gross income Table H-6: Summary of Housing Needs Households Number or % Total Households With Housing Cost Burden 11,075 Renter-Households with Housing Cost Burden 5,520 Owner-Households with Housing Cost Burden 5,555 Total Lower Income Households 8,350 % Extremely Low Income Households with Cost Burden 31.7% % Very Low Income Households with Cost Burden 25.4% % Low Income Households with Cost Burden 18.2% Total Overcrowded Households 735 Overcrowded Renter-Households 72.8% Overcrowded Owner-Households 27.2% 78 Arcadia General Plan – December 2013 Housing Element | i Table H-6: Summary of Housing Needs Special Needs Groups Persons per Households Elderly Persons 7,202 Seniors Living Alone 1,694 Disabled Persons 10,062 Large Households 2,179 Female Headed Households 3,246 Farmworkers 0 Homeless 106 Affordable Units At-Risk of Conversion 0 In general, renter households had a higher level of overcrowding problems (72.8 percent) compared to owner households (27.2 percent). However, homeowners were more affected by cost burden. Among the 7,202 households that had one or more seniors in the City, 1,694 lived alone. Large households constituted about 2,179 of all households in 2019, making up about 11.2 percent of households in the City. Projected Housing Needs per the RHNA The Regional Housing Needs Assessment (RHNA) is part of the State’s housing element law that determines the projected and existing housing needs for each jurisdiction in the State. State Housing Element law requires that a local jurisdiction accommodate their share of the region’s projected housing needs for the planning period. The Southern California Association of Governments (SCAG) is the regional planning agency responsible for allocating housing units to each jurisdiction. State law mandates that jurisdictions provide sufficient land to accommodate a variety of housing opportunities for all economic segments of the community. The RHNA is distributed by income category. For the 2021-2029 Housing Element update, the City of Arcadia is allocated a RHNA of 3,214 units as follows: The City must ensure the availability of residential sites at adequate densities and appropriate development standards to accommodate these units. The RHNA for the 2021-2029 Housing Element cycle in the SCAG region used January 1, 2022 as the baseline for projecting housing needs. The 2020 Annual Progress Report reported that the City issued permits for a total of 402 units from 2017 to 2020. This included new housing units as well as housing units which replaced older units that were demolished. This included 38 non-deed restricted units affordable to moderate income households and 364 units affordable to above moderate income households. Table H-7: RHNA (2021-2029) Income Group % of County MFI Total Housing Units Allocated Percentage of Units Very Low/Extremely Low 0-50% 1,102 34.3% Low 51-80% 570 17.7% Moderate 81-120% 605 18.8% Above Moderate 120% + 937 29.15% Total 3,214 100.0% Note: MFI=Median Family Income Source: Southern California Association of Governments, 2020. 79 The Housing Element Update provides opportunities for future residential development through the following land use strategies: ƒ Expansion of the Downtown Mixed- Use designation and implementation of DMU Overlay that allows a residential density of 64 to 80 units per acre, along with commercial development at an FAR of 1.0, to capitalize on the planned Gold Line station in Downtown Arcadia. ƒ Increasing density in the Mixed- Use Upzone zoning classification along Live Oak and First Avenue from 40 to 50 units per acre. ƒ Implementing a Residential Flex Overlay on commercial properties along Live Oak AvenueLas Tunas Drive to allow for residential development of up to 50 48 to 60 units per acre. ƒ Implementing a Residential Flex Overlay on properties in the Commercial-General commercial properties along Live Oak Avenue to allow for residential development of up to 40 to 50 units per acre. zoning classification to allow for residential development at a density of up to 30 units per acre. ƒ Implement a Residential Flex Overlay on properties on Commercial-Manufacturing General properties in the downtown area to allow for residential development at a density of up to 80 24 to 30 units per acre. This strategy is part of the expansion to the Downtown Mixed Use area. ƒ Increasing the maximum density in the High Density Residential categoryR-3 Upzone (R-3 zone) from 40 32 to 40 unitsunits per acre. This strategy enhances the feasibility of multifamily development.. ƒ Developing a specific plan for the Arcadia Golf Course Site, identified as an area to accommodate units across many income categories. A total of 192 units are proposed for low, moderate, and above moderate incomes. 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. 80 Arcadia General Plan – December 2013 Housing Element | i Involving the Community in Planning The City of Arcadia encourages and values community input. As part of the Housing Element update, the City undertook a broad-reaching public participation program. Outreach efforts that directly influenced the goals and policies in this Housing Element are described below. Public Workshops Throughout the Housing Element update, the City posted informational videos and conducted a community workshop and an online survey to obtain input from residents, stakeholders, and elected and appointed officials. Due to the Coronavirus (COVID-19) public health emergency and for the safety of the public and staff, outreach for the Housing Element Update was conducted virtually. Community Workshops In June 2021, the City developed a virtual informational video and presentation to provide the public with a better understanding of the RHNA process and provide information on future opportunities on community presentation. The informational video was posted on the Housing Element Update website and in the City’s Spring and Summer newsletter. On September 23, 2021, the City hosted a live virtual workshop to gather public input on the vision for Arcadia’s housing growth and the City’s draft strategies to identify adequate sites. Community Survey From June 14, 2021 to August 6, 2021 the City of Arcadia launched an online community survey to give community members and stakeholders an additional opportunity to engage and provide input on the Housing Element Update. The Survey asked the community to: x Rate program and policy opportunities, x Identify challenges/opportunities to and for housing in Arcadia, x Free response to open-ended questions, x Use geographic locators/indicators on a map, x Participate in prioritization exercises, and x Send comments or questions to the Housing Element team The community survey asked participants to consider potential policies and programs to include in the housing element. The online community survey received 616 English responses and 143 Chinese responses. For detailed responses please see Appendix B to the Technical Background Report, the Community Engagement Summary. Addressing Public Comments The City released the draft Housing Element from September 30, 2021 to November 1, 2021 for public review to give community members and stakeholders an opportunity to provide input on the Housing Element. Public comments were collectedsolicited on various platforms, however no comments were received during the public review period. 81 The comments and actions taken to address comments submitted through the survey, community workshop, and the public review draft are summarized in the table below. Table H-8: Public Comments Comment Themes Housing Element Response Online Survey Theme Shortage of senior housing and affordable housing for low income ƒ Programs 5.11 and 5.22 in Chapter 10: Implementation Plan identify objectives and incentives that could be implemented to increase the development of senior and affordable housing. Online Survey Theme Concentrate high density development in areas proximate to transit ƒ Parcels in Arcadia’s downtown were identified as a rezone strategy for high density development. Arcadia’s downtown is adjacent to the Metro Gold Line. ƒ Parcels along Live Oak Avenue, another transit corridor was also identified for higher density development. Online Survey Theme Leave established single-family neighborhoods and maintain Arcadia’s neighborhood integrity ƒ The strategies identified concentrate a majority of development on properties suitable for high density such as existing mixed-use areas, underutilized commercial properties, and areas identified as high-density residential in the City’s General Plan. It is anticipated that Accessory Dwelling Unit (ADU) growth will occur in the less dense areas such as single-family residential areas. Goals, Policies, and Programs The Housing Element identifies goals, policies, and implementation programs addressing housing opportunities, removal of governmental constraints, improving the condition of existing housing and providing equal housing opportunities for all Arcadia residents. These goals, policies and program actions further the City’s overall policy goal to inspire a more diverse, sustainable, and balanced community by implementing strategies and programs that contribute to economic and socially diverse housing opportunity that preserves and enhances Arcadia’s character. Arcadia is a built-out suburban community and the single-family and multifamily residential neighborhoods have given the City its identity as a “Community of Homes.” In 2019, the City adopted its first Historic Preservation Ordinance to recognize, preserve, and protect historic resources in the City. While the City continues to protect and preserve the character and quality of its neighborhoods, the City encourages the rehabilitation, and development of diverse housing that meets the people’s needs in all stages of their lives. Under this Housing Element Update, the City will focus on strategies to encourage higher density development and lot consolidation to supply the necessary sites. The City will embrace smart growth principles by expanding areas for high-density development in Downtown Arcadia and along Live Oak Corridor. Additionally, the City will implement Residential Flex Overlays to allow for more residential opportunities in areas with supportive uses. 82 Arcadia General Plan – December 2013 Housing Element | i The Housing Goals and Policies identified builds upon and revises the goals, policies, and programs of the existing Housing Element to ensure that the City can meet the housing needs of all residents through 2029, when the plan is scheduled to be updated again. Existing Housing Stock The City of Arcadia is generally built-out with mature neighborhoods with home prices that experience gains over time. Many homes are being purchased as investment properties and left vacant. In addition, some homes in Arcadia are vacant for a portion of the year because the property owners have businesses, families, or other obligations overseas and the local home is not used as a primary residence. 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 existing housing stock. In addition, preserving the quality and integrity of the residential neighborhoods is an important component. Goal H-1: Preservation, conservation, and enhancement of existing housing stock and residential neighborhoods within Arcadia Housing Policy H-1.1: Monitor and enforce building and property maintenance codes in residential neighborhoods, including those with vacant housing units, to prevent the physical deterioration of existing sound housing within the City. Housing Policy H-1.2: Provide code enforcement services designed to maintain the quality of the housing stock and the neighborhoods. Housing Policy H-1.3: Work with property owners and nonprofit housing providers to preserve existing housing for low and moderate income households. Housing Policy H-1.4: Support preservation and maintenance of historically and architecturally significant buildings and neighborhoods. Housing Policy H-1.5: Preserve unique environmental aspects of the community, including hillsides, canyons, and other environmental amenities, by allowing only minimal disruption. Housing Policy H-1.6: Encourage assisted housing units of all types, and expand affordable housing opportunities for extremely low, very low, low, and moderate income households. Housing Policy H-1.7: Support the role of local Homeowner’s Associations to maintain and improve the quality of the housing stock in existing neighborhoods. Housing Policy H-1.8: Maintain residential integrity of neighborhoods. Adequate Sites for Housing Providing an adequate supply and diversity of housing accommodates changing housing needs of residents. To provide adequate housing and maximize the use of limited land resources, new development should be constructed at appropriate densities that maximize the intended use of the land. Given the City’s built-out 83 character, few vacant properties remain, however underutilized lots in residential and commercial areas can be used to help accommodate housing sites. The detailed sites inventory includes the underutilized and mixed-use sites that can accommodate the RHNA for all income categories within the planning period. Goal H-2: Provide suitable sites for housing development to accommodate a range of housing for residential use that meet the City’s RHNA growth needs for all income levels. Housing Policy H-2.1: Provide for a range of residential densities and products, including low density single family-uses, moderate-density townhomes, higher-density townhomes, higher-density apartments/condominiums, and units in mixed-use developments. Housing Policy H-2.2: Encourage development of residential uses in strategic proximity to employment, recreational facilities, schools, neighborhood commercial areas, and transportation routes. Housing Policy H-2.3: Encourage compatible residential development in areas on underutilized land. Housing Policy H-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. Housing Policy H-2.5: Promote mixed-use developments in Downtown Arcadia, along First Avenue, and Live Oak/Las Tunas Avenue. Housing Policy H-2.6: Require that the density or intensity, as well as design of new developments, be compatible with adjacent neighborhoods. Housing Policy H-2.7: Encourage mixed-use development on commercial properties consistent with existing residential development standards to revitalize underutilized communities while maintaining Arcadia’s neighborhood integrity. 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 adults, young families, families with growing household sizes, and seniors. Decent and affordable housing is needed for all segments of Arcadia’s population. funding opportunities from varied sources increases the potential for developing 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. 84 Arcadia General Plan – December 2013 Housing Element | i Goal H-3: A range of housing choices for all social and economic segments of the community, including housing for persons with special needs. Housing Policy H-3.1: Promote the use of State density bonus provisions to encourage affordable housing for lower, moderate income households and senior housing. Housing Policy H-3.2: Facilitate homeownership opportunities for lower- and moderate income households. Housing Policy H-3.3: Work with non-profit and for-profit developers to maximize resources available for the construction of housing affordable Housing Policy H-3.4: Address special needs populations and extremely low income households through a range of housing opportunities, including emergency shelters, transitional housing, and supportive housing. Housing Policy H-3.5: Promote energy conservation in the design of residential development to conserve natural resources and lower energy costs. Housing Policy H-3.6: Monitor City’s ordinances, codes, policies, and procedures to support fair and equitable housing opportunity. Minimizing Constraints to Housing Development Market factors and government-imposed regulations can impact the production and affordability of housing. The City must address, and where legally possible, remove governmental constraints affecting the maintenance, improvement, and supply of housing. Although certain market conditions are beyond the control of a City, efforts can be directed to determine the reasonableness of land use controls, development standards, permit-processing, fees and exactions, and governmental requirements influencing housing production. Removal or reduction of housing constraints can have a positive influence of housing supply. Goal H-4: Mitigated governmental and non-governmental constraints to housing production and affordability. Housing Policy H-4.1: Review and modify as appropriate development standards, regulations, and processing procedures that may constrain housing development, particularly housing for lower- and moderate income households and for persons with special needs. Housing Policy H-4.2: Offer regulatory incentives and concessions for affordable housing. Housing Policy H-4.3: Provide for streamlined, timely, and coordinated processing of residential projects. Housing Policy H-4.4: Support infill development at appropriate locations in the City. 85 Promoting Fair Housing Arcadia supports fair and equal housing opportunities for all and affirmatively furthers fair housing through its policies and programs. Through mediating disputes, investigation of bona fide complaints of discrimination, or through the provision of education services, fair housing services work toward fair and equitable access to housing. Goal H-5: Equitable and fair housing opportunity in the City’s housing market. Housing Policy H-5.1: Partner with Housing Rights Center to provide fair housing services to Arcadia residents and ensure that residents are aware of their rights and responsibilities regarding fair housing. Housing Policy H-5.2: Encourage and support the construction, maintenance and preservation of residential developments which will meet the needs of families and individuals with specialized housing requirements. Housing Policy H-5.3: Encourage and support the construction, maintenance, and preservation of residential developments to meet the needs of the developmentally disabled. Housing Policy H-5.4: Take meaningful actions to overcome patterns of segregation, foster inclusive communities, and support fair housing. 86 Introduction ................................................................................................................................................. 1 Achieving Our Vision .................................................................................................................................... 2 Planning Framework for Housing ................................................................................................................. 4 Involving the Community in Planning ..........................................................................................................13 Goals, Policies, and Programs ......................................................................................................................14 Table H-1: Age of Housing Stock ................................................................................................................... 6 Table H-2: Housing Unit Types ..................................................................................................................... 7 Table H-3: Occupied Housing Units in 2019 .................................................................................................. 7 Table H-4: Median Home Values .................................................................................................................. 8 Table H-5: Overpayment for Housing ........................................................................................................... 8 Table H-6: Summary of Housing Needs .......................................................................................................10 Table H-7: RHNA (2021-2029).....................................................................................................................11 87 Arcadia General Plan – September 2021_DRAFT Implementation Plan | 10-1 Chapter 10: IMPLEMENTATION PLAN Arcadia General Plan 10 x 5. Housing Element The goals and policies outlined in the Housing Element address Arcadia’s identified housing needs and are implemented through a series of housing programs offered primarily through the Development Services Department. Housing programs define the specific actions the City will undertake to achieve the stated goals and policies. The housing programs for addressing community housing needs cover the following five issues: ƒ Housing Conservation ƒ Housing Production ƒ Provision of Affordable Housing ƒ Mitigation of Governmental Constraints ƒ Promotion of Equal Housing Opportunity The housing programs presented below include existing programs in Arcadia as well as revised and new programs that have been added to address new State law and the City’s unmet housing needs. 5-1. Home Rehabilitation The City has established a housing grant program intended to support housing rehabilitation for low- income homeowners. This program offers low-income homeowners grants of up to $20,000 to make necessary improvements such as enhancing electrical, plumbing, roofing, and accessibility to low- income groups that may not have the means to fund these improvements themselves. Forty-eight homeowners received the grant from 2017-2020. The City recognizes housing is essential for healthy living, and that home rehabilitation assistance can help increase access to healthy homes and support the ability for residents to age in place in appropriate living situations. Grants will continue to be incorporated during the 6th Cycle. Additionally, in 2013, the City added condominiums to the list of properties eligible for this funding, greatly expanding the scope and reach of the program. Condominiums are afforded grants up to $15,000. Objectives: ƒ Continue to provide loans to qualified low- and moderate-income homeowners. ƒ Encourage homeowners to include energy efficiency improvements as part of the rehabilitation projects. ƒ Utilize social media and City newsletters to Ddisseminate information to homeowners regarding rehabilitation standards and the Home Improvement Program on a quarterly basis.. 88 10-2 | Implementation Plan Arcadia General Plan – September 2021_DRAFT ƒ Improve up to 14 housing units annually. Responsible Agency: Development Services Department, Economic Development Funding Source: Community Development Block Grants (CDBG) Time Frame: Engage in outreach on a quarterly basis that will begin after the Housing Element Adoption; Ongoing provision of assistance; annual allocation of funding Related Policies: H-1.1; H-1.2; H-1.3; H-1.4; H-1.5 Sustainability Focus? Yes 5-2. Code Enforcement Arcadia is known for beautiful neighborhoods and high property values. To help maintain this excellent reputation, the City has adopted a number of regulations aimed at property maintenance in a manner that is helpful to homeowners and property owners. The Code Services Division enforces these laws to address code compliance issues. Objectives: ƒ Continue code enforcement activities and connect households in need with City rehabilitation programs. ƒ Provide proactive code enforcement of vacant properties by conducting outreaching to the surrounding community to provide information on how to report property maintenance concerns and working to contact property owners and resolve code violations. Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Begin outreach within 8 months of Housing Element adoption; Conduct outreach on an ongoing quarterly basis Related Policies: H-1.1; H-1.2 Sustainability Focus? No 5-3. Residential Design Guidelines State Housing law includes various exemptions for projects with an affordable housing component that limit a City’s ability to apply discretionary design review requirements for certain residential projects. State Housing law requires objective design standards be available for housing projects where the City’s discretion over design review is otherwise preempted per State law. Funded by a recent State housing grant, the City is currently working on objective development standards for multi-family development. These standards will replace design guidelines and the design review process for qualifying multi-family projects and all affordable housing projects. These projects will be approved ministerially without a discretionary design review process. It is anticipated that the objective development standards will be taken to the City Council and in place in the first half of 2022. TAs stated above, the City of Arcadia will review existing entitlement processes for housing development and will eliminate discretionary review for all housing development proposals that include a minimum affordable housing component. The City will review current development standards to ensure reasonable accommodation of a variety of housing types and densities. The City will amend existing development standards, as appropriate, to address subjective standards as applicable to projects with a minimum affordable housing component. 89 Arcadia General Plan_PUBLIC REVIEW DRAFT Implementation Plan | 10-3 Objective: ƒ Disseminate information to property owners regarding the Residential Design Guidelines. ƒ Continue to apply design guidelines through plan-check and review process. ƒ Review and update objective design standards for compliance with State Law Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Adopt standards within 12 months of the 6th Cycle Housing Element Related Policies: H-4.1, H4.2, H-4.3, H-4.4 Sustainability Focus? Yes 5-4. Preservation of At-Risk Units TheThe City will continue to monitor the publicly assisted and deed-restricted units as well as work with developers to maintain existing affordable housing stock in the City. Objectives: ƒ Pursuant to Government Code 65863.10-.13, the City will notify owners of affordable properties of the State Preservation Notice Law that requires rental housing with expiring subsidies to be offered for sale first to qualified preservation purchasers at market value. ƒ Annually monitor the status of at-risk units annually by maintaining contact with the property owner and HUD Multifamily Housing division. ƒ Ensure that adequate noticing is provided to the tenants if the Section 8 contract is not renewed. ƒ Encourage County of Los Angeles Housing Authority to pursue special Section 8 vouchers from HUD, which are reserved for very low-income households displaced by the expiration of project-based Section 8 assistance. ƒ Work with the property owner to secure additional funding to replace the Section 8 funding if necessary. Responsible Agency: Development Services Department Funding Source: Community Development Block Grants (CDBG) Time Frame: Ongoing;, Aannually monitor status of at-risk units; immediately notify property owners with expiring subsidies Related Policies: H-5.1, H-5.2 Sustainability Focus? Yes 5-5. Preservation of Middle-Income Housing through New Housing AuthoritiesProviders The City Council adopted resolutions to join two newly formed Housing AuthoritiesProviders, the California Community Housing Agency (CalCHA) and the California Statewide Communities Development Authority Community Improvement Authority (CSCDA-CIA) in June 2021. Both Authorities Providers focus on creating middle-income multifamily housing through the issuance of tax-exempt bonds to acquire existing apartment buildings. Following acquisition, the Authority Providers receives a property tax exemption over the life of the bonds. The acquired units are then converted to rent restricted 90 10-4 | Implementation Plan Arcadia General Plan – September 2021_DRAFT housing for middle-income households earning no greater than 120% of the Area Median Income (AMI) with rent capped at no greater than 35% AMI. Prior to acquiring any properties in Arcadia, CalCHA and CSCDA-CIA would be required to submit their proposed acquisition to the City and receive City approval of the transaction. Objectives: ƒ Support the issuance of tax-exempt bonds to create or preserve middle-income rental housing Responsible Agency: Development Services Department, Economic Development Division Funding Source: Housing Authority Bonds with City approval to forgo property taxes Time Frame: MOU with Middle-Income Housing Providers Entered, Annual Review Related Policies: H-1.3, H-1.6, H-1D Sustainability Focus? Yes 5-6. Residential Sites Inventory The City will monitor and evaluate the development of vacant and underdeveloped parcels on an annual basis and report the success of strategies to encourage residential development in its Annual Progress Reports required pursuant to Government Code 65400. The City of Arcadia will respond to market conditions and will revise or add additional sites where appropriate or add additional incentives, if identified strategies are not successful in generating development interest. The City will include the report in its annual General Plan Status Report including Housing Element Report to OPR and HCD by April 1st each year. Objectives: ƒ Update the inventory of vacant and underutilized sites annually to ensure adequate sites are available to accommodate the remaining RHNA. ƒ Provide sites inventory to interested developers. ƒ Monitor the development trends in the City annually, particularly on the sites identified in this Housing Element to ensure that the City has adequate remaining capacity for meeting the RHNA. Identify additional sites to replenish the sites inventory if necessary. Responsible Agency: Development Services Department, Planning Services Funding Source: General Fund Time Frame: Ongoing monitoring; Update annually Related Policies: H-2.1, H-2.2, H-2.3, H-2.4, H-2.5, H-2.6 Sustainability Focus? Yes 5-78. Expansion of the Downtown Mixed- Use Area to Permit Residential Uses To create increased opportunities for the development of new housing within Arcadia, the City will expand the existing Downtown Mixed-Use zone, and provide a Residential-Flex Downtown Overlay over Commercial Manufacturing properties, in the Downtown Area. The City of Arcadia will rezone to allow developments by right pursuant to Government Code section 65583.2(i) when 20 percent or more of the units are affordable to lower income households on sites identified as part of the Downtown Mixed- Use Expansion Focus Area. The sites identifiedSites within the surrounding area of the existing zoning designation, totalsing approximately 39 acres52 acres, have been included within the sites inventory. 91 Arcadia General Plan_PUBLIC REVIEW DRAFT Implementation Plan | 10-5 These sites are assumed to yield 2,5501,214 units, 540 305 of which are assumed to develop affordably, at a minimumn average density of 64 du/ac. While three of the identified sites have potential unit yields less than 16 units, these sites are a part of the Small Sites Strategy and through the Inclusionary Housing Program, Lot Consolidation Incentives Program, and other affordable housing incentives, these sites are projected to net units affordable to low and very low income households. Implementation of this program will also provide for development standards and entitlement procedures to encourage the development housing for persons of Very Low and Low incomes. In developing the Overlay, or similar rezonerezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Objectives: ƒ Rezone commercial properties identified in the Sites Inventory or apply an overlay to properties within Downtown Arcadia to accommodate high residential density development ƒ Inform developers of and encourage the development of housing on these sites ƒ Annually monitor the trend of redevelopment on these sites to evaluate the effectiveness of the strategy for facilitating the reuse of underutilized sites. As necessary, revise the City’s strategy to encourage development on underutilized properties. Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Within 36 months of adoption of the 6th Cycle Housing Element Related Policies: H-2.2, H-2.3, H-2.5, H-2.6 Sustainability Focus? No 5-8. Establish an Overlay in the Downtown Mixed-Use Area to Permit Residential Uses To create increased opportunities for the development of new housing within Arcadia, the City will expand theimplement an overlay on C-M parcels adjacent to the existing existing Downtown Mixed-Use zone, in the Downtown Area. The City of Arcadia will rezone to allow developments by right pursuant to Government Code section 65583.2(i) when 20 percent or more of the units are affordable to lower income households on sites identified as part of the Downtown Mixed-Use Expansion Overlay Focus Area. The sites identified within the surrounding area of the existing zoning designation, totals approximately 18 acres39. These sites are assumed to yield 1,214266 units, 305 69 of which are assumed to develop affordably, at a minimum density of 64 du/ac. While three 59 of the identified sites have potential unit yields less than 16 units, these sites are a part of the Small Sites Strategy and through the Inclusionary Housing Program, Lot Consol idation Incentives Program, and other affordable housing incentives, these sites are projected to ne t units affordable to low and very low income households. Implementation of this program will also provide for development standards and entitlement procedures to encourage the development housing for persons of Very Low and Low incomes. In developing rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. 92 10-6 | Implementation Plan Arcadia General Plan – September 2021_DRAFT Objectives: ƒ Rezone commercial properties or applyImplement an overlay to properties identified in the Sites Inventory within Downtown Arcadia to accommodate high residential density development ƒ Inform developers of and encourage the development of housing on these sites ƒ Annually monitor the trend of redevelopment on these sites to evaluate the effectiveness of the strategy for facilitating the reuse of underutilized sites. As necessary, revise the City’s strategy to encourage development on underutilized properties. Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Within 36 months of adoption of the 6th Cycle Housing Element Related Policies: H-2.2, H-2.3, H-2.5, H-2.6 Sustainability Focus? No 5-98X: Increase Residential Density of the Mixed-Use Zone To create increased opportunities for the development of new housing within Arcadia, the City will increase the density of the existing Mixed-Use Zone. The City of Arcadia will increase the maximum density of the Mixed-Use Zone to 50 du/acre. The City of Arcadia will rezone to allow developments by right pursuant to Government Code section 65583.2(i) when 20 percent or more of the units are affordable to lower income households on sites identified as part of the Mixed-Use Upzone Focus Area. The sites identified as part of this Focus Area totals approximately 36 acres. These sites are assumed to yield 477 units, 124 of which are assumed to develop affordably at a minimum density of 40 du/acre. While 85 of the identified sites have potential unit yields less than 16 units, these sites are a part of the Small Sites Strategy and through the Inclusionary Housing Program, Lot Consolidation Incentives Program, and other affordable housing incentives, these sites are projected to net units affordable to low and very low income households. This zone allows for 100 percent residential projects by right. Implementation of this program will also provide for development standards and entitlement procedures to encourage the development housing for persons of Very Low and Low incomes. In developing rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Objectives: ƒ Increase density of the existing Mixed-Use zone identified in the Sites Inventory to accommodate higher density residential development. ƒ Inform developers of and encourage the development of housing on these sites ƒ Annually monitor the trend of redevelopment on these sites to evaluate the effectiveness of the strategy for facilitating the reuse of underutilized sites. As necessary, revise the City’s strategy to encourage development on underutilized properties. Responsible Agency: Development Services Department Funding Source: General Fund 93 Arcadia General Plan_PUBLIC REVIEW DRAFT Implementation Plan | 10-7 Time Frame: Within 36 months of adoption of the 6th Cycle Housing Element Related Policies: H-2.2, H-2.3, H-2.5, H-2.6 Sustainability Focus? No 5-1099. Expand and Update the Residential Flex Mixed Use Overlay in the Las Tunas and Live Oak Corridor To create increased opportunities for the development of new housing within Arcadia, the City will expand the existing Mixed Use Residential Flex Overlay to sites in the Live Oakalong the Las Tunas corridor west of Santa Anita Ave and increase the maximum density to 60 du/acrepermitted density to 30 or 50 du/ac depending on specific site location. On corridor parcels east of Santa Anita Avenue, the City will increase permitted density to a max of 50 du/ac. On corridor parcels west of Santa Anita Avenue, the City will increase permitted density to a max of 30 du/ac. The City of Arcadia will rezone to allow developments by right pursuant to Government Code section 65583.2(i) when 20 percent or more of the units are affordable to lower income households on sites identified as part of the Las Tunas Residential Flex Overlay Focus Area. The sites identified as part of this Focus Area totals approximately 16 acres. These sites are assumed to yield 609 units, 155 of which are assumed to develop affordably at a minimum density of 48 du/acre. While 15 of the identified sites have potential unit yields less than 16 units, these sites are a part of the Small Sites Strategy and through the Inclusionary Housing Program, Lot Consolidation Incentives Program, and other affordable housing incentives, these sites are projected to net units affordable to low and very low income households. Sites within the corridor, totaling 27 acres, have been included within the sites inventory. These sites are assumed to yield 1,184 units, 148 of which are assumed to develop affordably. Implementation of this program will also provide for development standards, entitlement procedures to encourage the development of housing for persons of Very Low and Low incomes. In developing the Overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Objectives: ƒ Increase density of the Las Tunas Residential Flex Overlay on properties identified in the Sites InventoryExpand the R-F Overlay to other commercially zoned properties along the Live-Oak corridor to accommodate higher density residential, mixed-use development ƒ Inform developers of the Overlay and encourage the development of housing on these sites ƒ Annually monitor the trend of redevelopment on these sites to evaluate the effectiveness of the strategy for facilitating the reuse of underutilized sites. As necessary, revise the City’s strategy to encourage development on underutilized properties. Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Within 36 months of adoption of the 6th Cycle Housing Element Related Policies: H-2.1, H-2.3, H-2.4, H-2.5, H-2.6 Sustainability Focus? No 94 10-8 | Implementation Plan Arcadia General Plan – September 2021_DRAFT 5-11. Expand and Update the Residential Flex Overlay in the Live Oak Corridor To create increased opportunities for the development of new housing within Arcadia, the City will expand the existing Mixed Use Residential Flex Overlay to sites along the Las Tunas corridor west of Santa Anita Ave and increase the maximum density to 50 du/acre. The City of Arcadia will rezone to allow developments by right pursuant to Government Code section 65583.2(i) when 20 percent or more of the units are affordable to lower income households on sites identified as part of the Live Oak Residential Flex Overlay Focus Area. The sites identified as part of this Focus Area totals approximately 11 acres. These sites are assumed to yield 185 units, 48 of which are assumed to develop affordably at a minimum density of 40 du/acre. While 20 of the identified sites have potential unit yields less than 16 units, these sites are a part of the Small Sites Strategy and through the Inclusionary Housing Program, Lot Consolidation Incentives Program, and other affordable housing incentives, these sites are projected to net units affordable to low and very low income households. With the implementation of this overlay, 100 percent residential projects would be allowed by right. Implementation of this program will also provide for development standards, entitlement procedures to encourage the development of housing for persons of Very Low and Low incomes. In developing the Overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Objectives: ƒ Implement a Live Oak Residential Flex Overlay to commercially zoned properties identified in the Sites Inventory to accommodate higher density residential development. ƒ Inform developers of the Overlay and encourage the development of housing on these sites ƒ Annually monitor the trend of redevelopment on these sites to evaluate the effectiveness of the strategy for facilitating the reuse of underutilized sites. As necessary, revise the City’s strategy to encourage development on underutilized properties. Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Within 36 months of adoption of the 6th Cycle Housing Element Related Policies: H-2.1, H-2.3, H-2.4, H-2.5, H-2.6 Sustainability Focus? No 5-1207. Establish an Overlay to Permit Residential Uses in the Commercial General Zone To create increased opportunities for the development of new housing within Arcadia, the City will establish an overlay to permit residential uses withing the Commercial General (C-G) Zone at a maximum density of 30 du/acre. The City of Arcadia will rezone to allow developments by right pursuant to Government Code section 65583.2(i) when 20 percent or more of the units are affordable to lower 95 Arcadia General Plan_PUBLIC REVIEW DRAFT Implementation Plan | 10-9 income households on sites identified as part of the C-G Residential Flex Overlay Focus Area. Sites identified as part of this Focus Area totals approximately 84 acres. These sites are assumed to yield 992 units, 252 of which are assumed to develop affordably at a minimum density of 24 du/acre. While 20 of the identified sites have potential unit yields less than 16 units, through the Inclusionary Housing Program and other affordable housing incentives, these sites are projected to net units affordable to low and very low income households. with C-G zoning designation, totaling 84 acres, have been included within the sites inventory. These sites are assumed to yield 992 units, 198 of which are assumed to develop affordably for low and very low-income households, at an average density of 24 du/ac. Implementation of this program will also provide for development standards and entitlement procedures to encourage the development housing for persons of Low and Very Low incomes. In developing the Overlay, or similar rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. Objectives: ƒ Establish an overlay to allow residential development on Commercial-General zoned properties ƒ Inform developers of the Overlay and encourage the development of housing on these sites ƒ Annually monitor the trend of redevelopment on these sites to evaluate the effectiveness of the strategy for facilitating the reuse of underutilized sites. As necessary, revise the City’s strategy to encourage development on underutilized properties. Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: With 36 months of adoption of the 6th Cycle Housing Element Related Policies: H-2.1, H-2.2, H-2.3, H-2.4, H-2.6 Sustainability Focus? No 5-131X. Increase Density of the R-3 Zone To create increased opportunities for the development of new housing within Arcadia, the City will increase the density of the existing high density residential, R-3 Zone. The City of Arcadia will increase the maximum density of the R-3 Zone to 40 du/acre. The City of Arcadia will rezone to allow developments by right pursuant to Government Code section 65583.2(i) when 20 percent or more of the units are affordable to lower income households on sites identified as part of the R-3 Upzone Focus Area. The sites identified as part of this Focus Area totals approximately 236 acres. These sites are assumed to yield 810 units, 213 of which are assumed to develop affordably at a minimum density of 32 du/acre. While 190 of the identified sites have potential unit yields less than 16 units, these sites are a part of the Small Sites Strategy and through the Inclusionary Housing Program, Lot Consolidation Incentives Program, and other affordable housing incentives, these sites are projected to net units affordable to low and very low income households. Implementation of this program will also provide for development standards and entitlement procedures to encourage the development of housing for persons of Very Low and Low incomes. In developing this rezone strategy, the City will evaluate the potential to include a variety of incentive tools as appropriate, including but not limited to floor area bonus, density bonus, entitlement streamlining, fee waivers or reductions and other considerations. 96 10-10 | Implementation Plan Arcadia General Plan – September 2021_DRAFT Objectives: ƒ Increase density of the existing R-3 zone identified in the Sites Inventory to accommodate higher density residential development. ƒ Inform developers of and encourage the development of housing on these sites ƒ Annually monitor the trend of redevelopment on these sites to evaluate the effectiveness of the strategy for facilitating the reuse of underutilized sites. As necessary, revise the City’s strategy to encourage development on underutilized properties. Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Within 36 months of adoption of the 6th Cycle Housing Element Related Policies: H-2.2, H-2.3, H-2.5, H-2.6 Sustainability Focus? No 5-142X. Develop a Specific Plan for the Arcadia Golf Course The City owns the Arcadia Par 3 Golf Course and is currently negotiating with development teams to evaluate the future sale of the property and/or the redevelopment of the site. The City will continue to work with developers to enter a Purchase and Sale Agreement and Development Agreement with a selected Development Team on the entitlement of the site. Per the requirements of the Surplus Land Act, a portion of the project (at least 25 percent of all units developed) will be dedicated to affordable housing units. The City will work with a selected developer to create a Specific Plan that provides a plan for preserving Open Space, and market-rate and affordable units that the development will include. Based on expressed developer interest, the City projects that 192 units will be developed on the Arcadia Golf Course Site, 48 of which will be affordable to low and very low income households. Objectives: ƒ Enter a Purchase and Sale Agreement and Development Agreement ƒ Develop a specific plan that will allow for a minimum of 48 units affordable to low and very low income households Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Within 36 months of adoption of the 6th Cycle Housing Element Related Policies: H-2.2, H-2.3, H-2.5, H-2.6 Sustainability Focus? No 5-15310. Encourage Development of Housing Sites Listed in Inventory The City will continue to encourage and facilitate residential and/or mixed-use development on sites listed in Appendix AB inventory by providing technical assistance to interested developers for site identification and entitlement processing. The City will continue to support developers funding applications from other agencies and programs. 97 Arcadia General Plan_PUBLIC REVIEW DRAFT Implementation Plan | 10-11 The City shall post the Sites Inventory, as shown in Appendix A on the City’s webpage and will equally encourage and market the sites for both for-sale development and rental development. The City shall identify the appropriate incentives, potentially including promotion to developers of the benefits of density bonuses and related incentives, identification of potential funding opportunities, offering expedited entitlement processing, and offering fee waivers and/or deferrals, to encourage the development of affordable housing within residential and mixed-use developments. The City will continuously implement this program as housing projects are submitted to the City. Objectives: ƒ Host a webpage for the Sites Inventory as shown in Appendix AB ƒ Identify incentives to encourage developers to develop affordable housing ƒ Review and update the Sites Inventory as necessary and provide information to interested developers. ƒ Annually review development trends to evaluate the effectiveness of incentive programs and revise as necessary Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Ongoing Related Policies: H-2.1, H-2.3, H-2.4, H-2.5, H-2.6 Sustainability Focus? No 5-16411. Housing Density Bonus The City will continue to evaluate and update Section 9103.15 – Density Bonuses for Affordable and Senior Housing of its Municipal Code to be consistent with State law. A Density bonus is an effective incentive to aid in the development of affordable housing units within Arcadia through providing concessions to proposed developments that meet specific affordability criteria. These concessions may take the form of additional residential units permitted beyond the density allowed in the base zoning, and relaxed parking standards. The City’s current density bonus remains compliant by deferring to State Law by reference. Objectives: ƒ Continue to evaluate and update the density bonus section of the City’s Municipal Code to ensure consistency with State Law. ƒ Promote State density bonuses which are an effective incentive to aid in the development of affordable housing units through providing concessions to proposed developments that meet specific affordability criteria Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Update Municipal Code within 12 months of adoption of the Housing Element Related Policies: H-2.1, H-2.3, H-2.4, H-2.5, H-2.6 Sustainability Focus? No 98 10-12 | Implementation Plan Arcadia General Plan – September 2021_DRAFT 5-17512. ADU and JADU Incentive and Monitoring Program The City of Arcadia believes Accessory Dwelling Units (ADUs) are a demonstrated method to provide affordable housing in the City. Due to recent legislation, the ability to entitle and construct ADUs has increased significantly. Additionally, Tthe passing of SB 9 allows property owners to split a single-family lot into two lots, and either add a second home to their lot or split the lot into two and place duplexes on each. This creates the opportunity for four housing units on a property that is currently limited to a single-family home. The City anticipates that the passing of SB 9 will encourage the creation of ADUs and second units on single-family lots. The City recognizes the significance of this legislation as evidenced by a marked increase in ADU permit applications. Due to this legislation, the City believes aggressive support for ADU construction will result in increased opportunities for affordable housing. The City will create a monitoring and incentive program to track ADU and JADU creation and affordability levels throughout the planning period. This will allow the City to monitor the development of accessory units at all income levels. Additionally, the City will review their ADU and JADU development progress within 2 years of the adoption of the 6th cycle Housing Element to evaluate if production estimates are being achieved. If ADUs are not being permitted as assumed in the Housing Element, the City will take the action within 6 months of completion of the ADU review to ensure that adequate capacity at each income level in maintained to meet the City’s RHNA needs. These actions may include additional incentives for ADU development or identification of adequate sites to meet the City’s identified unaccommodated need. Objectives: x Monitor the development of ADUs to identify strategies to incentivize ADU production x Working with existing ADU owners to maintain existing affordable ADU rentals x Establishing fee waivers for ADUs that will be made affordable to low and very low income households x Developing and public awareness campaign by developing public outreach materials on the City’s website and other print and digital media x Evaluate and assess the appropriateness of additional incentives to encourage ADU development Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Analyze methods within 12 months of Housing Element adoption; Establish programs (such as fee waivers) within 24 months of Housing Element adoption; outreach to ADU property owners regarding affordable ADU rentals on a semi-annual basis; annual monitoring and review of ADU incentives. Related Policies: H-2.1, H-2.3, H-2.4, H-2.6 Sustainability Focus? No 5-1386. Candidate Sites Used in Prior Housing Element Planning Cycle 99 Arcadia General Plan_PUBLIC REVIEW DRAFT Implementation Plan | 10-13 Pursuant to Government Code Section 65583.2(c), any non-vacant sites identified in the prior 5th Cycle or vacant sites identified two or more consecutiv e planning periods, shall be provided by-right development when at least 20% of the units in the proposed development are affordable to lower- income households. Appendix B of the 2021-2029 Housing Element identifies vacant and non-vacant sites that the City used in previous Housing Elements to meet the current RHNA need. To comply with State law, the City will amend the Zoning Code to permit residential uses by-right for housing development in which at least 20- percent of the units are affordable to lower-income households for sites that: x Are non-vacant and identified in the prior planning period; and x Vacant sites included in two or more consecutive planning periods Objectives: ƒ Amend the Zoning Code to permit residential uses by-right for housing development where at least 20-percent of units are affordable and were identified in the prior planning period Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Within 36 months of adoption of the 6th Cycle Housing Element Related Policies: H-2.1, H-2.3, H-2.4, H-2.6 Sustainability Focus? No 5-14197. Inclusionary Housing Policy The City has a substantial RHNA obligation of affordable housing that will be a challenge to accommodate due to prevailing project development costs include high land values. Therefore, the City must evaluate a variety of policy prescriptions that will encourage and facilitate the construction of below market-rate housing. The City will investigate inclusionary housing policy options as an additional means to provide a variety of housing types and opportunities for very low, low- and moderate-income households in Arcadia. The City will assess and analyze a variety of inclusionary housing policy options, standards, requirements and regulations to determine the best course of action. Based upon this initial assessment, the City will determine the appropriateness and application of inclusionary policies, and adopt policies, programs or regulations that will produce housing opportunities affordable to very low, low and moderate-income households. The City has determined that a base inclusionary requirement of 20 percent for new residential development to be affordable to very low-, low-, and moderate-income households is appropriate as an interim measure prior to the adoption of a final inclusionary ordinance or policy. The final inclusionary policy shall address development of rental and for-sale housing affordable to very low, low- and moderate-income households, as well as the applicability of this requirement and its alternatives. Objectives: ƒ Adopt interim inclusionary policy ƒ Explore and evaluate inclusionary options ƒ Adopt an inclusionary Ordinance if feasible Responsible Agency: Community Development Funding Source: General Fund 100 10-14 | Implementation Plan Arcadia General Plan – September 2021_DRAFT Time Frame: Adopt interim inclusionary policy within 6 9 months of Housing Element adoption. Evaluate Inclusionary options and if feasible, adopt an Ordinance within 36 months of Housing Element Related Policies: H-2.1, H-2.3, H-2.4, H-2.6 Sustainability Focus? No 5-201815. Lot Consolidation Incentives Given the built-out nature in Arcadia, the City will continue to promote the consolidation of small lots with adjacent lots to provide opportunities for housing. The City requires a Lot Line Adjustment, which can consolidate four or fewer lots without the need of a public hearing or any discretionary action. Lot line adjustments are an administrative process. Applications are reasonable in price and have a short processing time (10 business days). This active program will be advertised to small lot properties identified in the Housing Element and related incentives will be considered to promote the development of housing. Objectives: ƒ Continue Utilize the City’s website and relationship with developers to advertise the Lot Line Adjustment process and incentives associated ƒ Continue to offer the following incentives to facilitate consolidation of small properties into larger parcels: x Fee waivers x Priority in permit processing. ƒ Work with developers to identify additional incentivesIncentives could include that could include: ƒ Fee waiverFlexible Development Standards (setback requirements, reduced parking or increased height) ƒ Committing resources for development of affordable housing on small sites ƒ Priority in permit processing ƒ Update Fee Schedule to reflect Lot Consolidation Incentives Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Update fee schedule within 12 months of adoption of the Housing Element; Determine and implement additional incentives within 12 months of adoption of the Housing Element Related Policies: H-4.1, H-4.2, H-4.3, H-4.4 Sustainability Focus? No 5-211916. Preservation of Rental Opportunities To protect lower and moderate-income rental housing, the City shall make a conscious effort to reduce the demolition of lower and moderate-income rental housing on sites that provide more than 15 units unless the units maintain the same income categories after demolition. If Moderate or Low and Very 101 Arcadia General Plan_PUBLIC REVIEW DRAFT Implementation Plan | 10-15 Low-income housing units are demolished, the City will work with developers to find replacement opportunities within the City. Objectives: ƒ Work with developers to ensure Moderate or Low and Very Low-income housing is replaced if demolished Responsible Agency: Community Development Funding Source: General Fund Time Frame: Ongoing Related Policies: H-3.1, H-3.6 Sustainability Focus? Yes 5-22. Replacement Unit Program The City of Arcadia will adopt a policy and require replacement housing units subject to the requirements of Government Code section 65915, subdivision (c)(3) on sites identified in the sites inventory when any new development (residential, mixed-use, or nonresidential) occurs on a site that is identified within the inventory meeting the following conditions: ƒ Currently has residential uses or had residential uses within the past five years that has been vacated or demolished, and ƒ Was subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to low and very low income households, or ƒ Subject to any form of rent or price control through a public entity’s valid exercise of its police power, or ƒ Occupied by low or very low income households. Objectives: ƒ Mitigate the loss of affordable housing units and require new housing developments to replace all affordable units lost due to new development Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Program will be implemented immediately and applied as applications on identified sites are received and processed. Local policy shall be adopted within 12 months of Housing Element adoption Related Policies: H-3.1, H-3.6 Sustainability Focus? Yes 5-232017. Public Information about Affordable Housing The City will maintain a brochure of incentives offered by the City for the development of affordable housing including fee waivers, expedited processing, density bonuses, and other incentives. A copy of 102 10-16 | Implementation Plan Arcadia General Plan – September 2021_DRAFT this brochure shall be located at the Planning Counter, on the City’s website and shall also be provided to potential developers. The City will update the brochure on an as- needed tobasis to provide updated information regarding incentives including updated fees and a reference to the most up to date Site Analysis and Inventory. Objectives: ƒ Distribute materials with information for the development of affordable housing to developers ƒ Explore methods to further disseminate affordable housing incentive information to developers Responsible Agency: Community Development Funding Source: General Fund Time Frame: Ongoing; Review brochure annually; Update brochure on an as-needed basis Related Policies: H-3.1, H-3.2, H-3.3, H-3.6 Sustainability Focus? No 5-24118. Employee Housing, Emergency Shelters, Transitional, and Supportive Housing To comply with State law, the City of Arcadia will amend certain sections of its Municipal Code to address the following requirements: x Employee Housing Act – The City is compliant with the Employee Housing Act but does not have Employee Housing defined in its Municipal Code. The City will update the Code to ensure alignment with the State’s definition of employee housing. x Supportive Housing Streamlined Approvals (AB 2162) - To comply with AB 2162 (Chapter 753, Statues 2018), the City of Arcadia will amend its Municipal Code to permit supportive housing as a use permitted by right in all zones where multiple family and mixed-use development is permitted. x Emergency and Transitional Housing Act of 2019 (AB 139) – The City will update its Municipal Code to comply with the requirements of Government Code 65583 to address permit requirements, objective standards, analysis of annual and season needs, and parking and other applicable standards and provisions. Per Government Code 65583, emergency shelters will only be subject to the same development and management standards applicable to residential or commercial development within the same zone except for those standards prescribed by the statute. Per Government Code 65583, the Municipal Code will be updated to allow transitional and supportive housing in all zones allowing residential uses and will only be subject to those restrictions that apply to other residential dwellings of the same type in the same zone. x The City will evaluate the definition of supportive and transitional housing as well as emergency shelters and update the definition where necessary to comply with Government Code 65583. Objectives: ƒ Align with State law that would provide emergency shelters, transitional and supportive housing by amending the City’s Municipal Codes to align with State objectives 103 Arcadia General Plan_PUBLIC REVIEW DRAFT Implementation Plan | 10-17 ƒ Update the City’s Municipal Code with the definition of employee housing consistent with State Law Responsible Agency: Community Development Funding Source: General Fund Time Frame: Adopt Code Amendments within 12 months of Housing Element adoption Related Policies: H-3.1, H-3.2, H-3.3, H-3.4 Sustainability Focus?: No 5-25219. Participation in the San Gabriel Valley Housing Trust In 2020, the City became a member of the San Gabriel Valley Housing Trust in an effort to support this regional group with the goal of providing and building affordable housing throughout the Valley. The City has participated in all steps of the formation of the Trust, its governing board, and its goal statements. The Trust has sought funds (which would be matched) to retain, build, or support affordable housing throughout the region, including Arcadia. Objectives: ƒ Work with the San Gabriel Valley Housing Trust to identify funding opportunities for affordable housing development or support Responsible Agency: Economic Development Funding Source: General Fund Time Frame: Ongoing Related Policies: H-3.1, H-3.3, H-3.4, H-3.6 Sustainability Focus? No 5-2630. SB 35 Streamlining The City of Arcadia will establish written procedures to comply with California Government Code Section 65913.4 and publish those procedures for the public, as appropriate, to comply with the requirements of SB 35. These provisions apply only when the City of Arcadia does not meet the State mandated requirements for Housing Element progress and reporting on Regional Housing Needs Assessment (RHNA). Currently, the City of Arcadia is subject to SB 35 and is required to process and streamline residential development projects that provide at least 10% low-income affordable units (i.). All projects covered by SB 35 are still subject to the objective development standards of the City of Arcadia’s Municipal Code and Building Code. However, qualifying projects cannot be subject to Design Review or public hearings; and in many cases, the City cannot require parking. Per SB 35 requirements, the City cannot impose parking requirements on a SB 35 qualified streamlining project if it is located: x Within a half-mile of public transit; x Within an architecturally and historically significant historic district; x In an area where on-street parking permits are required but not offered to the occupants of the development; or x Where there is a car-share vehicle located within one block of the proposed project. 104 10-18 | Implementation Plan Arcadia General Plan – September 2021_DRAFT One parking space per unit may be required of all other SB 35 projects. The City’s status with regard to SB 35 can change over time with a record of good progress towards RHNA and timely reporting to the State. Objectives: ƒ Update the City’s Municipal Code or website with written procedures consistent with what is required by SB 35 Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Within 12 months of adoption of the 6th Cycle Housing Element Related Policies: H-4.1, H-4.3 Sustainability Focus? No 5-2714. Section 8 Housing Choice Voucher Program The Los Angeles County Housing Authority currently administers the Section 8 Housing Choice Voucher Program for Arcadia residents on behalf of HUD. HUD’s Housing Choice Voucher program assists extremely low and very low-income households by paying the difference between 30 percent of the household income and the cost of rent. Pursuant to HUD regulations, 70 percent of the new voucher users must be at the extremely low-income level. In 2020, 101 households received Section 8 vouchers within the City. Additionally, the County currently has 57 households on the waitlist with an Arcadia mailing address. Objectives: ƒ Continue to participate in the federally sponsored Section 8 Housing Choice Voucher program. ƒ Disseminate information to the public regarding the Section 8 Program and promote participation by rental property owners. ƒ Coordinate with the County of Los Angeles strive to provide Section 8 Vouchers to at least 90 families annually. Responsible Agency: Los Angeles County Housing Authority Funding Source: HUD Section 8 Time Frame: Ongoing Related Policies: H-3.3 Sustainability Focus? No 5-2852. Affordable Housing for Families and Persons with Special Needs The City will continue to encourage the provision of housing for persons with disabilities (including persons with developmental disabilities), seniors, extremely low-income households, agricultural employees and farmworkers, and racetrack employees. These special needs groups have unique housing needs and the City will offer a combination of financial and regulatory tools to facilitate the development of housing suitable for these demographic groups: 105 Arcadia General Plan_PUBLIC REVIEW DRAFT Implementation Plan | 10-19 ƒ Encourage senior citizen independence through promotion of housing and services related to in- home care, meal programs, counseling, and maintain a senior center that affords seniors opportunities to live healthy, active, and productive lives in the City ƒ Market the State density bonus program to developers to encourage housing development that includes housing affordable to lower and moderate-income households and senior residents. Provide incentives in the density bonus program to encourage the inclusion of extremely low- income units in affordable housing projects. ƒ Adopt land use policies that support the development of housing at Extremely Low-Income levels ƒ Provide an expedited review process for developers applying for Federal and State Tax Credits, which require a designation of a percentage of the units for extremely low income households. ƒ Encourage developers to include accessibility for individuals with disabilities in their project designs ƒ Explore the granting of regulatory incentives, such as expedited permit processing, and fee waivers and deferrals, to projects targeted for persons with developmental disabilities. ƒ Continue to provide exceptions to regulatory provisions for housing for persons with disabilities through the adopted reasonable accommodation procedures. ƒ Amend the Municipal Code to be in compliance with Health and Safety Code, 17021.5, 17021.6 and 17021.8. and define employee housing in a manner consistent with applicable Health and Safety Code sections ƒ Revise the Municipal Code to state that employee housing for six or fewer employees will be treated as a single-family structure and permitted in the same manner as other dwellings of the same type in the same zone. Additionally, the Municipal Code will be updated to state that employee housing consisting of no more than 12 units or 36 beds will be permitted in the same manner as other agricultural uses in the same zone. ƒ Amend the Municipal Code to explicitly define Farmworker Housing and establish it as permitted use in residential or nonresidential zones, consistency with State law Objectives: ƒ Explore potential for incentive programs for the development of senior housing and services ƒ Identify incentives to encourage developers to pursue housing projects for persons with developmental disabilities ƒ Provide developers with information on identified incentive programs online and at City Hall ƒ Maintain a list of qualified housing developers with a track record of providing affordable housing that is of high quality and well managed. Annually contact these developers to explore opportunities for affordable housing in Arcadia. ƒ Assist developers in the application of funding for affordable housing development that promotes quality development. Annually explore funding opportunities with potential developers. ƒ Pursue housing at Santa Anita Racetrack for groomsman, targeting extremely low and lower income. ƒ Annually monitor the success of incentive programs and revise them as necessary ƒ Update Municipal Code to be comply with Comply with Health and Safety Code 17021.5, 17021.6 and 17021.8 and address the needs of Agricultural Employees and Farmworkers Responsible Agency: Development Services Department Funding Source: Grants, Other funding sources, CDBG Time Frame: Ongoing Update Municipal Code within 12 months of Housing Element adoption; identify and implement incentives for senior housing and services within 12 months of Housing Element adoption; annually contact developers to explore affordable housing opportunities in the City; annually explore funding opportunities with potential developers; annually review and revise incentive programs for Special Needs populations. 106 10-20 | Implementation Plan Arcadia General Plan – September 2021_DRAFT Related Policies: H-3.1; H-3.2; H-3.3; H-4.1; H-5.2; H-5.3; H-4.1, H-4.2 Sustainability Focus? Yes 5-2693. Homeless Program Assistance The City has applied for and received grants to provide resources to those experiencing homelessness. Grants have funded case workers through Union Station, a Homeless Resources Hub to provide services to homeless individuals, and information to the public through newsletters and multiple workshops. The City will continue to investigate opportunities to provide funding to local organizations for providing shelter and services to the individuals experiencing homelessness. Objectives: ƒ Investigate opportunities to provide funding to local organizations to support individuals experiencing homelessness Responsible Agency: Community Development Funding Source: Grants, General Fund Time Frame: Disseminate information on a quarterly basis through City newsletters, host two workshops annually. Related Policies: H-3.3, H-3.4, H-3.6 Sustainability Focus? No 5-3074. Housing Sustainability The City of Arcadia will continue to offer a variety of programs to promote sustainable development. These programs include promoting green building codes, the Construction Recycling Ordinance, the Water Efficiency in Landscaping Ordinance, and the Sustainable Arcadia education program. The City will also encourage that any affordable housing developments that receive City assistance, to the extent feasible, to include installation of energy efficient appliances and devices that will contribute to reduced housing costs for future occupants of the units. The City will continue to implement program as housing projects are awarded funds from the City in the 6th Cycle. Objective: ƒ Continue to enforce City building codes and ordinances to enhance energy efficiency is residential construction and maintenance. Responsible Agency: Development Services Department, Planning Services Funding Source: Departmental budget; CDBG Time Frame: Marketing and promotion of sustainability programs and codes is already occurring and will continue to be ongoing Related Policies: H-3.5 Sustainability Focus? Yes 5-28315. Fair Housing 107 Arcadia General Plan_PUBLIC REVIEW DRAFT Implementation Plan | 10-21 Pursuant to AB 686, the City will affirmatively further fair housing by taking meaningful actions in addition to resisting discrimination, that overcomes patterns of segregation and foster inclusive communities free from barriers that restrict access to opportunity based on protected classes, as defined by State law. The Housing Element contains analysis of contributing factors to fair housing issues within Arcadia and determined the following factors were applicable: x Lack of Affordable Housing – Arcadia residents generally earn a high annual income, approximately 38 percent higher than the Los Angeles County median household income. Additionally, Table 2-32 in the Community Profile states that the median home value in Arcadia is $1,097,600 which is high for surrounding jurisdictions and greater than the County overall. The cost burden of housing in Arcadia is higher when compared to the County and the state. Table 2-18 shows that 36 percent of the City’s households earn a lower income (at or below 80 percent of the area median family income). Additionally, 37 percent of the City’s households pay over 30 percent of their income for housing and are considered cost burdened. The City currently does not have a diverse stock of affordable housing and will implement programs to increase production of housing for all income levels. x Barriers to Housing for Persons with Disabilities – Affordability, design, and location limit the supply of housing for persons with disabilities. Amendments to the Fair Housing Act, as well as state law, require ground-floor units of new multi-family construction with more than four units to be accessible to persons with disabilities. However, units built prior to 1989 are not required to be accessible to persons with disabilities. The City of Arcadia has a higher population with disabilities than the surrounding region. Additionally, a majority of the residences were built between 1940 and 1989 suggesting that the housing stock was not required to be accessible to persons with disabilities. The City could provide additional enforcement and outreach on fair housing for both landlords and residents with regards to people with disabilities. Additionally, the City has plans to update its reasonable accommodation procedures to address some issues associated with physical disabilities. x Fair Housing Enforcement and Outreach - Previous fair housing inquiries in Arcadia have gone unresolved. Additionally, the City only conducts outreach through the Housing Rights Center. The City could provide additional general information and outreach on fair housing within Arcadia. The City is considered a high opportunity and resource area, additional enforcement and outreach on fair housing may improve opportunities for households in the region to move to Arcadia. The City will collaborate with appropriate capable organizations to review housing discrimination complaints, assist in the facilitation of equitable dispute resolution, and, where necessary, refer complainants to appropriate state or federal agencies for further investigation, action and resolution. The City is committed to taking meaningful actions to mitigate or remove fair housing issues within Arcadia. The City will take the following actions for each of the contributing factors identified: x Lack of Affordable Housing o Incentivizing affordable housing developments for all income levels and working to inform developers of incentives to develop affordable housing (Program 5-23, Program 5-35) o Preserve existing affordable units (Program 5-4, Program 5-5, Program 5-21) x Regulatory Barriers for Persons with Disabilities o The City will amend the Reasonable Accommodation Procedure per Program 5-34 108 10-22 | Implementation Plan Arcadia General Plan – September 2021_DRAFT o The City will work to distribute information regarding construction of housing for persons with disabilities (Program 5-28) x 28Fair Housing Enforcement and Outreach (Program 5-32) o Continue to partner with the Housing Rights Center to provide Fair Housing services o Post information regarding Fair Housing on the City website, in City newsletters and social media Additionally, the City will partner with capable organizations to review housing discrimination complaints, attempt to facilitate equitable resolution of complaints, and, where necessary, refer complainants to the appropriate state or federal agency for further investigation and action. Objectives: ƒ Collaborate with appropriate capable organizations to review housing discrimination complaints, assist in the facilitation of equitable dispute resolution, and, where necessary, refer complainants to appropriate state or federal agencies for further investigation, action, and resolution. ƒ Participate in the Analysis of Impediments to Fair Housing Choice and other fair housing planning efforts coordinated by the Los Angeles County Community Development Commission. Responsible Agency: Development Services Department, Los Angeles County Community Development Commission, Housing Rights Center Funding Source: CDBG Time Frame: Implement programs on an ongoing basis, beginning within 12-24 months of adoption Related Policies: H-5.1, H-5.2, H-5.3 Sustainability Focus? No 5-32296. Fair Housing Assistance The City contracts with the Housing Rights Center (HRC) to actively inform residents, landlords of residential property, and others involved in the insurance, construction, sale or lease of residential property of the laws pertaining to fair housing. The HRC provides the following programs and services to its clients, free of charge: ƒ Landlord-Tenant Counseling ƒ Predatory Lending Information and Referrals ƒ Housing Discrimination Investigation ƒ Enforcement and Advocacy ƒ Outreach and Education The City distributes information regarding fair housing to community members upon request and refers those with complaints and concerns about fair housing to the HRC. The City also periodically provides information on fair housing, the HRC and its services through the City newsletter and at the annual Senior Fair. Objectives ƒ Continue to contract with a provider to provide fair housing services to residents. ƒ Disseminate information to the public through the City’s newsletter and community events on the array of fair housing programs and services provided by the City. 109 Arcadia General Plan_PUBLIC REVIEW DRAFT Implementation Plan | 10-23 Responsible Agency: Development Services Department; Los Angeles County Community Development Commission; Housing Rights Center Funding Source: CDBG Time Frame: Ongoing Related Policies: H-5.1; H-5.2; H-5.3 Sustainability Focus? No 5-33027. Supportive Housing/Low Barrier Navigation Centers State law has been updated to require approval 'by right' of certain supportive housing and low barrier navigation centers that meet the requirements of State law. Low barrier navigation centers are generally defined as service-enriched shelters focused on the transition of persons into permanent housing. Low barrier navigation centers provide temporary living facilities for persons experiencing homelessness due to income, public benefits, health services, shelter, and housing. To comply with State law, The City of Arcadia will adopt policies, procedures, and regulations for processing this type of use to establish a non-discretionary local permit approval process that must be provided to accommodate supportive housing and lower barrier navigation centers per State law. In the interim, any submitted application for this use type will be processed in accordance with State law. The City will provide for annual monitoring of the effectiveness and appropriateness of existing adopted policies. Should any amendments be warranted to existing policies pursuant to State law, the City will modify its existing policies, as appropriate. Objectives: ƒ Adopt code amendments to establish supportive housing and low barrier navigation centers ‘by right’ if the project meets requirements established by State Law. Responsible Agency: Development Services Department Funding Source: CDBG Time Frame: Adopt Code Amendments within 24 months of Housing Element adoption Related Policies: H-5.1; H-5.2; H-5.3 Sustainability Focus? No 5-34. Update Reasonable Accommodation Procedures The City will amend the Municipal Code to remove modification requirements and allow for reasonable accommodations without any discretionary actions or modification applications. Objectives: ƒ Remove land use constraints to the development of housing for individuals with disabilities and provide reasonable accommodation to ensure equal access to housing 110 10-24 | Implementation Plan Arcadia General Plan – September 2021_DRAFT Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Adopt Code Amendments within 12 months of Housing Element adoption Related Policies: H-2.1, H-2.3, H-2.4, H-2.5, H-2.6 Sustainability Focus? No 5-35. Mitigating High Development Fees and Development Standards forConstraints for the Development of Affordable Housing Projects Specific to affordable housing, the City has identified constraints such as parking standards in Section 3 as a constraint to the development of affordable housing. identified the development fees and parking standards in Section 03 as a constraint to the development of affordable housing. To mitigate these constraints, the City will work with affordable housing developers to develop a pre-approved list of incentives to promote the development of affordable housing. Such incentives may include a waiver or reduction of certain development fees, or modifications of parking standards or other development standards that could constrain the development of affordable housing. Objectives: ƒ Monitor standards and development in the City to ensure that conditions conducive to the development of affordable housing are maintained. Should a constraint emerge during the 6th Cycle, the City will actively work to create amendments or incentives to lower the barrier to develop affordable housing. ƒ Identify and remove constraints to the development of affordable housing. The City will work to identify solutions to reduce the barrier with regards to parking standards and any other constraints identified in the future. Responsible Agency: Development Services Department Funding Source: General Fund Time Frame: Evaluate program features within 24 months; adopt procedures within 36 months of Housing Element adoption; annually monitor and evaluate development standards and fees within the City. Related Policies: H-5.1; H-5.2 Sustainability Focus? No 5-35128. Water and Sewer Service Providers Pursuant to SB 1087, Chapter 727, Statues of 2005, the City of Arcadia is required to deliver its adopted housing element and any amendments thereto to local water and sewer service providers. This legislation allows for coordination between the City and water and sewer providers when considering approval of new residential projects, to ensure that the providers have an opportunity to provide input on the Element. 111 Arcadia General Plan_PUBLIC REVIEW DRAFT Implementation Plan | 10-25 Additionally, review of the Housing Element ensures that priority for water and sewer services is granted to projects that include units affordable to lower-income households. The City will submit the adopted 6th Cycle Housing Element to local water and sewer providers for their review and input. Objectives: ƒ Submit the 6th Cycle Housing Element to local water and sewer providers for their review and input ƒ Ensure that there is adequate water and sewer services planned to support housing growth Responsible Agency: Development Services Department Funding Source: CDBG Time Frame: Transmit document immediately upon adoption of future amendment Related Policies: H-5.1; H-5.2 Sustainability Focus? No Table 10-1 summarizes the City of Arcadia’s quantified objectives with regards to the construction, rehabilitation, and preservation of housing. These objectives are established based on the City’s resources available over the planning period. 5-36. Mobilehomes and Manufactured Homes The City will review the existing provisions and development standards of Mobilehomes and manufactured homes for consistency with State Law in accordance with Government Section 65852.3. Objectives: ƒ Review Municipal Code for consistency with State Law and adopt any necessary amendments. Responsible Agency: Development Services Department Funding Source: CDBG Time Frame: Adopt Code Amendments within 24 months of Housing Element adoption Related Policies: H-5.1; H-5.2; H-5.3 Sustainability Focus? No Table 10-1: Quantified Objectives Extremely Low Very Low Low Moderate Above Moderate Total New Construction 138 138 167 177 434 1,054 Rehabilitation 40 40 40 40 0 160 Preservation (Naomi Gardens) 0 100 0 0 0 100 112 Arcadia DRAFT 2021-2029 Housing Element Update 6th Cycle Housing Element Update i Technical Background Report CITYY OFF ARCADIA 6th Cycle Housing Element Update (2021-2029) DRAFT December 2021 113 Arcadia DRAFT 2021-2029 Housing Element Update 6th Cycle Housing Element Update ii Technical Background Report CCITYY OFF ARCADIAA 6th Cycle Housing Element Update (2021-2029) DRAFT December 2021 114 Arcadia DRAFT 2021-2029 Housing Element Update 6th Cycle Housing Element Update iii Technical Background Report CContents Section 1: Introduction.......................................................................................................................1-1 A. Role of the Housing Element .........................................................................................................1-1 B. State Policy and Authorization.......................................................................................................1-1 1. Background...............................................................................................................................1-1 2. State Requirements ..................................................................................................................1-1 3. Regional Housing Needs Assessment .......................................................................................1-3 4. Relationship to Other Communities ...........................................................................................1-3 5. Public Participation....................................................................................................................1-4 6. Data Sources............................................................................................................................1-5 7. Technical Background Report Organization ...............................................................................1-5 Section 2: Community Profile............................................................................................................2-1 1. Population Characteristics.............................................................................................................2-1 A. Population Growth ............................................................................................................................2-1 B. Age Characteristics ..........................................................................................................................2-3 C. Race/Ethnicity Characteristics ..........................................................................................................2-4 2. Economic Characteristics ..............................................................................................................2-7 A. Employment and Wage Scale...........................................................................................................2-7 3. Household Characteristics ....................................................................................................2-10 A. Household Type ..................................................................................................................2-10 B. Household Size ...................................................................................................................2-11 C. Household Income ..............................................................................................................2-12 3. Housing Problems.......................................................................................................................2-15 A. Overcrowding.......................................................................................................................2-16 B. Overpayment (Cost Burden) In Relationship to Income ..............................................2-18 4. Special Needs Groups ................................................................................................................2-20 A. Seniors .................................................................................................................................2-20 B. Persons with Physical and Developmental Disabilities .............................................................2-21 C.Large Households ...................................................................................................................2-23 D. Single-Parent Households ................................................................................................2-24 E. Farmworkers and Racetrack Workers .............................................................................2-25 F. Students ...............................................................................................................................2-25 G. Extremely Low income Households and Poverty Status .............................................2-26 H. Homeless..............................................................................................................................2-30 5. Housing Stock Characteristics.....................................................................................................2-31 115 Arcadia DRAFT 2021-2029 Housing Element Update 6th Cycle Housing Element Update iv Technical Background Report A. Housing Growth...................................................................................................................2-31 B. Housing Type ......................................................................................................................2-32 C. Housing Availability and Tenure ......................................................................................2-32 D. Vacancy Rates ....................................................................................................................2-34 E. Housing Age and Condition .....................................................................................................2-35 F. Housing Costs and Affordability .......................................................................................2-36 Section 3: Housing Constraints, Resources, and Affirmatively Furthering Fair Housing (AFFH).............3-2 1. Nongovernmental Constraints .......................................................................................................3-2 A. Land Costs and Construction Costs ..........................................................................................3-2 B. Availability of Financing .............................................................................................................3-3 C. Economic Constraints ...............................................................................................................3-6 2. Governmental Constraints.............................................................................................................3-6 A. Land Use Controls ....................................................................................................................3-6 State Density Bonus Law ..............................................................................................................3-8 B. Residential Development Standards ..........................................................................................3-9 Landscaping Requirements .........................................................................................................3-13 Site Coverage and FAR ..............................................................................................................3-13 Minimum Unit Sizes ....................................................................................................................3-13 Maximum Building Heights ..........................................................................................................3-13 Parking Standards ......................................................................................................................3-14 Definition of a Family ..................................................................................................................3-15 C. Homeowners Association Areas ..............................................................................................3-16 D. Growth Management Measures ..............................................................................................3-21 E. Specific Plans .........................................................................................................................3-21 Seabiscuit Pacific Specific Plan –Le Meridien Hotel and Mixed Use Project (SP-SP)..................3-21 F. Variety of Housing Types Permitted ........................................................................................3-21 Single-Family Dwelling ................................................................................................................3-26 Multi-Family Dwelling ..................................................................................................................3-26 Two-Family Dwelling ...................................................................................................................3-26 Accessory Dwelling Unit ..............................................................................................................3-26 Junior Accessory Dwelling Unit ...................................................................................................3-26 Residential Care Facility- Small and Large ..................................................................................3-26 Supportive Housing –Housing Type, Small, and Large ...............................................................3-26 Transitional Housing –Housing Type, Small, and Large ..............................................................3-27 Boarding House ..........................................................................................................................3-28 Emergency Shelter .....................................................................................................................3-28 116 Arcadia DRAFT 2021-2029 Housing Element Update 6th Cycle Housing Element Update v Technical Background Report Hotel and Motel...........................................................................................................................3-28 Live/Work Unit ............................................................................................................................3-28 Single-Room Occupancy ............................................................................................................3-28 Employee Housing ......................................................................................................................3-29 Mobile Homes .............................................................................................................................3-29 Manufactured Homes ..................................................................................................................3-29 Short Term Rentals and Unoccupied Housing .............................................................................3-29 G. Housing for Persons with Disabilities .......................................................................................3-29 Reasonable Accommodation ......................................................................................................3-29 H. Development Fees ..................................................................................................................3-30 I. On-/Off-Site Improvements......................................................................................................3-38 Building Codes and Enforcement ................................................................................................3-38 Local Processing and Permit Procedures ....................................................................................3-39 Permit Processing.......................................................................................................................3-40 Site Plan and Design Review ......................................................................................................3-41 J. Senate Bill 35 ..........................................................................................................................3-42 K. Infrastructure Constraints ........................................................................................................3-43 Dry Utilities .................................................................................................................................3-43 Water Supply and Wastewater Capacity......................................................................................3-43 Fire and Emergency Services .....................................................................................................3-44 Police Services...........................................................................................................................3-45 L. Environmental Constraints ......................................................................................................3-45 Geologic and Seismic Hazards ...................................................................................................3-46 Flooding......................................................................................................................................3-46 Fire Hazards...............................................................................................................................3-46 Mitigating Environmental Conditions ...........................................................................................3-47 3.Affirmatively Furthering Fair Housing (AFFH)..............................................................................3-47 A. Needs Assessment .................................................................................................................3-48 Countywide AFH Outreach FY 2017 ...........................................................................................3-48 2021 –2029 Housing Element Update Outreach .........................................................................3-48 Compliance with State and Local Fair Housing Laws...................................................................3-48 Enforcement and Outreach .........................................................................................................3-50 B. Fair Housing Issues ................................................................................................................3-54 C. Lending Patterns .....................................................................................................................3-54 D. Hate Crimes............................................................................................................................3-56 E. Analysis of Federal, State, and Local Data and Knowledge .............................................................3-56 117 Arcadia DRAFT 2021-2029 Housing Element Update 6th Cycle Housing Element Update vi Technical Background Report Summary of Local Knowledge Analysis .......................................................................................3-56 Integration and Segregation Patterns and Trends........................................................................3-56 Racially or Ethnically Concentrated Areas of Poverty (R/ECAP)..................................................3-66 Concentrated Areas of Affluence .................................................................................................3-71 Disparities in Access to Opportunity ............................................................................................3-73 G. Discussion of Disproportionate Housing Needs .......................................................................3-91 Existing Needs ............................................................................................................................3-91 Future Growth Need ...................................................................................................................3-99 Displacement Risk ......................................................................................................................3-99 Cost of Preservation and Replacement Analysis .......................................................................3-102 Summary of Disproportionate Housing Needs Factors ..............................................................3-102 H. Assessment of Local Contributing Factors to Fair Housing in Arcadia ....................................3-102 AB 686 .....................................................................................................................................3-103 AB 686 Sites Analysis AFFH Findings .......................................................................................3-116 I. Summary of Programs to Support Fair Housing .....................................................................3-116 4. Housing Resources ...................................................................................................................3-117 A. Regional Housing Needs Allocation .......................................................................................3-117 Residential Sites Inventory ........................................................................................................3-118 Selection of Suitable Sites.........................................................................................................3-118 Accessory Dwelling Unit Production ..........................................................................................3-118 Regional Housing Needs Allocation ..........................................................................................3-119 Summary of Sites Inventory and RHNA Obligations ..................................................................3-120 5. Financial Resources .................................................................................................................3-120 A. Section 8 Housing Choice Voucher .......................................................................................3-120 B. Grants and Programs............................................................................................................3-121 Community Development Block Grants (CDBG)........................................................................3-121 San Gabriel Valley Regional Housing Trust ...............................................................................3-121 CalCHA and CSCDA-CIA..........................................................................................................3-121 C. Opportunities for Energy Conservation ..................................................................................3-121 Title 24 .....................................................................................................................................3-121 Energy Use and Providers ........................................................................................................3-121 Section 4: Review of Past Performance ............................................................................................4-2 1. Review of Past Performance .........................................................................................................4-2 Appendix A: Adequate Sites............................................................................................................. A-1 A. Adequate Sites Analysis Overview ...............................................................................................A-1 1. Selection of Sites .............................................................................................................................A-4 118 Arcadia DRAFT 2021-2029 Housing Element Update 6th Cycle Housing Element Update vii Technical Background Report 2. Projects in the Pipeline ....................................................................................................................A-4 3. Redevelopment of Nonvacant Sites for Residential Use ...................................................................A-6 4. Accessory Dwelling Units .................................................................................................................A-9 5. Selection of Sites to Accommodate Remaining Need .....................................................................A-12 Downtown Mixed-Use Expansion & Overlay ...............................................................................A-12 Mixed-Use Upzone ....................................................................................................................A-16 Las Tunas and Live Oak Corridor ...............................................................................................A-19 C-G Residential Flex Overlay .....................................................................................................A-22 R-3 Upzone ...............................................................................................................................A-24 Arcadia Golf Course...................................................................................................................A-28 6. Development of Small Site Parcels ................................................................................................A-30 7. Water, Sewer and Dry Utility Availability .........................................................................................A-33 Water and Sewer .......................................................................................................................A-33 Utilities .......................................................................................................................................A-34 B. Calculations of Unit Capacity .....................................................................................................A-34 8. Capacity Calculations ....................................................................................................................A-34 Net Unit Calculations .................................................................................................................A-34 8. Zoning and General Plan Designations ..........................................................................................A-36 9. Adequate Sites Table ....................................................................................................................A-36 Appendix B: Community Engagement Summary ............................................................................B-1 1. Housing Element Update Website....................................................................................................B-3 2. Community Workshop #1 – Informational Video and Presentation ...................................................B-4 3. Online Community Survey ...............................................................................................................B-5 4. Community Workshop #2.................................................................................................................B-7 5. Social Media and City Publications ..................................................................................................B-8 6. Public Comments ............................................................................................................................B-9 Appendix C: Glossary of Terms ........................................................................................................ C-1 119 Section 1: Introduction 1 TTechnical Background Report SSection 1 Introduction 120 Section 1: Introduction 1-1 Section 1: Introduction AA . Role of the Housing Element The Housing Element is a state mandated chapter of the Arcadia’s General Plan; it identifies and analyzes the City’s housing needs and includes a detailed outline and work program of the City’s goals, policies, and quantified objectives. The Housing Element also addresses the maintenance and expansion of the housing supply to accommodate households currently living and expected to live in Arcadia during the 2021-2029 planning period. Through research and analysis, the Housing Element identifies available candidate housing sites and establishes the City’s official housing policies and programs to accommodate the Regional Housing Needs Assessment (RHNA) goals as determined by the Southern California Association of Governments (SCAG). The programs and policies established within the Housing Element guide future decision-making to achieve the City’s housing goals for the 2021-2029 planning period. B. State Policy and Authorization 1. Background As a mandated chapter of the Arcadia General Plan, the Housing Element must meet all requirements of existing state laws. Goals, programs and policies, and quantified objectives within the Housing Element consistent with state law are to be implemented within a timeline to ensure the City accomplishes the identified actions. 2. State Requirements California State Housing Element Law (California Government Code Article 10.6) establishes the requirements for the Housing Element. State Law requires that local governments review and revise the Housing Element of their comprehensive General Plans once every eight years. The California Legislature has adopted an overall housing goal for the State to ensure every resident has a decent home and suitable living environment. Section 65580 of the California Government Code states: a) 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 farmworkers, is a priority of the highest order. b) 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 in all economic levels. c) The provisions of housing affordable to low and moderate income households requires the cooperation of all levels of the government. d) 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. 121 Section 1: Introduction 1-2 Table 1-1 summarizes the State Housing Element requirements and identifies where these requirements are addressed in the Housing Element Update. Table 1-1: Housing Element Requirements Housing Element Requirements Gov. Code Requirements Reference in Housing Element Analysis of employment trends. Section 65583.a Section 2.2 Projection and quantification of existing and projected housing needs for all income groups. Section 65583.a Section 3.3.G An inventory of land suitable for residential development including vacant sites and sites with redevelopment potential. Section 65583.a Appendix A Analysis of existing and potential governmental constraints upon the maintenance, improvement, or development of housing for all income levels. Section 65583.a Section 3.2 Analysis of existing and potential nongovernmental (private sector) constraints upon maintenance, improvement or development of housing for all income levels. Section 65583.a Section 3.1 Analysis concerning the needs of the homeless. Section 65583.a Section 2.4.H Analysis of special housing needs: handicapped, elderly, large families, farm workers, and female-headed households. Section 65583.a Section 2.4 Analysis of opportunities for energy conservation with respect to residential development. Section 65583.a Section 3.5.C Identification of Publicly Assisted Housing Developments. Section 65583.a Section 3.5.B Identification of Units at Risk of Conversion to Market Rate Housing. Section 65583.a Section 3.3.G Identification of the City’s goal relative to the maintenance, improvement, and development of housing. Section 65583.a Housing Element: Goals, Policies and Programs Analysis of quantified objectives and policies relative to the maintenance, improvement, and development of housing. Section 65583.a Implementation Plan 122 Section 1: Introduction 1-3 Housing Element Requirements Gov. Code Requirements Reference in Housing Element Identification of adequate sites that will be made available through appropriate action with required public services and facilities for a variety of housing types for all income levels. Section 65583.b Appendix A Identification of strategies to assist in the development of adequate housing to meet the needs of low and moderate income households. Section 65583.c(1) Appendix A Description of the Public Participation Program in the formulation of Housing Element Goals, Policies, and Programs. Section 65583.d Appendix B Description of the Regional Housing Needs Assessment (RHNA) prepared by the Southern California Association of Governments. Section 65583.e Section 3.4.A Analysis of Fair Housing, including Affirmatively Furthering Fair Housing. Section 8899.50 Section 3.3 Review of the effectiveness of the past Element, including the City’s accomplishments during the previous planning period. Section 65583.f Section 4 Source: State of California, Department of Housing and Community Development. Arcadia’s Housing Element was last adopted in December 2013 for the 5th cycle of the 2014-2021 planning period. The Housing Element for the 2021-2029 planning period, is part of the 6th update cycle for jurisdictions within the SCAG region and allows for synchronization with the Regional Transportation Plan and Sustainable Communities Strategy (RTP/SCS). The Element sets forth an 8-year strategy to address the City’s identified housing needs, including specific programs and activities. 3. Regional Housing Needs Assessment Section 65583 of the California Government Code sets forth the specific content requirements of a jurisdiction’s housing element. Included in these requirements are obligations on the part of local jurisdictions to provide their “fair share” of regional housing needs. Local governments and Councils of Governments (COGs) are required to determine existing and future housing need and the allocation of this need must be approved by the California Department of Housing and Community Development (HCD). Arcadia is a member agency of the Southern California Association of Governments (SCAG). SCAG is responsible for preparing the Regional Housing Needs Assessment (RHNA) for all jurisdictions within the SCAG region. HCD established the planning period for the current RHNA from October 15, 2021 to October 15, 2029. For the 2021-2029 planning period, the City is allocated a total of 3,214 units, including 1,102 units affordable to very low income households, 570 units affordable to low income, 605 units affordable to moderate- income, and 937 units affordable to above moderate (market-rate) income households. 4. Relationship to Other Communities 123 Section 1: Introduction 1-4 The goals, policies, actions, and programs described in the Housing Element relate to, and are consistent with, the other Elements of the Arcadia General Plan, which was last updated in November 2010. The Housing Element supports and reinforces development policies contained in the Land Use Element. The Land Use Element establishes the location, type, intensity, and distribution of land uses throughout the City, and defines these land uses’ build-out potential. By designating residential development, the Land Use Element identifies limits for densities and types of housing units constructed in the City. It also identifies lands designated for a range of other land uses, including employment-generating uses, open space, and public uses. The presence and potential for jobs can affect the current and future local demand for housing at the various income levels in the City. The Circulation Element of the General Plan also relates to the Housing Element. The Circulation Element establishes a transportation plan to accommodate the movement of people and goods within and through the City. Consequently, the Housing Element must include policies and incentives that consider the types of infrastructure essential for residential housing units in addition to mitigating the effects of growth in the City. The Housing Element has been reviewed for consistency with the City’s other General Plan Elements, and the Housing Element’s policies and programs are consistent with the other Elements. As portions of the General Plan may be amended in the future, the Housing Element will be reviewed to ensure internal consistency is maintained. 5. Public Participation Section 65583 of the Government Code states that, "The local government shall make diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort." Meaningful community participation is also required in connection with the City's Assessment of Fair Housing (AFH). A discussion of citizen participation is provided below. As part of the 6th Cycle Housing Element Update process, the City of Arcadia has conducted public outreach efforts beginning in 2021. These recent outreach efforts included a virtual presentation, an online survey, Community Workshop, digital media, advertisement on through social media and newsletters, and noticed Public Hearings. Project materials, including summaries from community workshops and public meetings, notices, and draft public review documents are available on the City’s website. Outreach for the 6th Cycle Housing Element to the community includes the following actions: o Housing Element Update webpage with all housing materials available in English and Chinese located at: https://www.arcadiaca.gov/housing o Informational Videos and recorded presentations posted to the City’s website in June, 2021 o Postcard mailed to every residential postal customer in the City informing the community of the Housing Element in general, how to get involved, and how to access the community survey o Online Community Survey, in English and Chinese, provided from June 14, 2021 to August 6, 2021 o A Virtual Community Workshop hosted on September 23, 2021 which will bewas recorded and posted to the City’s website o Advertisements and outreach through social media and City newsletters o Public Review of the Draft Housing Element 124 Section 1: Introduction 1-5 As required by Government Code Section 65585(b)(2), all written comments regarding the Housing Element made by the public have previously been provided to each member of the City Council. Appendix B contains a summary of all public comments regarding the Housing Element received by the City during the update process. 6. Data Sources The data used for the completion of this Housing Element comes from a variety of sources. These include, but are not limited to: o United States Census, 2010 o American Community Survey, 5-Year Estimates, 2019 o Regional Analysis of Impediments to Fair Housing (AI) o Point-in-Time Homeless Census by the Regional Task Force on the Homeless, 2019 o Home Mortgage Disclosure Act (HMDA) lending data o California Department of Economic Development o California Employment Development Division Occupational Wage data, 2020 o Department of Housing and Urban Development, Comprehensive Housing Affordability Strategy (CHAS), 2013-2017 The data sources represent the best data available at the time this Housing Element Update was prepared. The original source documents contain the assumptions and methods used to compile the data. 7. Technical Background Report Organization This Technical Background Report presents the technical analysis and City’s background which informed the City of Arcadia’s policy program for the 2021-2029 6th Cycle Planning Period. This Report is comprised of the following sections: Section 1: Introduction contains a summary of the content, organization and statutory consideration of the Housing Element; Section 2: Community Profile contains a detailed analysis of the City’s population, household and employment base, and the characteristics of the housing stock; Section 3: Housing Constraints, Resources, and Affirmatively Furthering Fair Housing examining governmental and non-governmental constraints on production, maintenance, and affordability of housing and provides a summary of housing resources, including sites identification, funding, and financial considerations; Section 4: Review of Past Performance includes a review of the City’s progress in implementing the programs under the previously adopted Housing Element. Appendices provide supplementary background resources including: o Appendix A – Adequate Sites Analysis o Appendix B – Community Engagement Summary o Appendix C – Glossary of Housing Terms 125 Section 1: Introduction 1 TTechnical Background Report SSection 2 Community Profile 126 Section 2: Community Profile 2-1 Section 2: Community Profile The Community Profile provides an overview of the City’s housing and population conditions and lays the foundation for policies and programs within the Housing Element. The City of Arcadia strives to achieve a balanced housing stock that meets the varied needs of all income segments of the community. To understand the City’s housing needs, the nature of the existing housing stock and the housing market must be comprehensively evaluated. This section of the Technical Background Report discusses the major components of housing needs in Arcadia, including population, household information, economic characteristics, and housing stock characteristics. Each of these components is presented in a regional context, and where relevant, in the context of other nearby communities. This assessment serves as the basis for identifying the appropriate goals, policies, and programs for the City to implement during the 2021- 2029 Housing Element Cycle. 11 . Population Characteristics Understanding the characteristics of a population is vital in the process of planning for the future needs of a community. Population growth, age composition, and race/ethnicity influence the type and extent of housing needed and the ability of the local population to afford housing costs. Issues such as population growth, race/ethnicity, age, and employment trends are factors that combine to influence the type of housing needed and the ability to afford housing. The following section describes and analyzes the various population characteristics and trends that affect housing need. A. Population Growth Table 2-1 exhibits the population growth in the City of Arcadia and surrounding jurisdictions using the Southern California Association of Governments (SCAG) Regional growth forecast report and US Census data. The 2010 Census reported a total population of 55,704 in the City of Arcadia which is significantly lower than nearby jurisdictions such as Pasadena and El Monte. The Southern California Association of Governments (SCAG) compiled, using data and direction from multiple state entities, a Regional Growth Forecast which produces socio-economic estimates and projections at multiple geographic levels for multiple years. The SCAG Regional Growth Forecast (2016-2045) projected a 2.87 percent population growth for the City of Arcadia from 2010 to 2016. SCAG projects that the City of Arcadia is expected to see a 14.98 percent increase from 2010 to 2045. 127 Section 2: Community Profile 2-2 According to the U.S. Census 5-Year Estimates, Arcadia’s total population in 2016 was 57,755 which is 0.8 percent higher than the population projected in SCAG’s Regional Growth Forecast. Figure 2-1 below shows Arcadia’s population growth from 2010 to 2019. While the SCAG model may only be able to roughly predict population changes over time, it considers regional trends and acts as a valuable tool for planning for future housing needs. Figure 2-1: Population Change in Arcadia (2010 – 2019) Source: American Community Survey, 5-year estimate (2010-2019) 55,704 57,564 58,152 54000 54500 55000 55500 56000 56500 57000 57500 58000 58500 59000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Population SizeYear Table 2-1: Population Growth Jurisdictions Population Percent Change 2010 Actual 2016 Projected 2045 Projected 2010- 2016 2010-2045 Monrovia 36,616 38,000 42,100 3.78% 10.79% Pasadena 136,449 142,100 155,500 4.14% 9.43% Arcadia 56,364 57,300 62,200 2.87% 8.55% El Monte 113,888 114,300 137,500 0.36% 20.30% Los Angeles County* - 1,044,500 1,258,000 % 20.44% Represents an estimate from the SCAG 2016-2040 Regional Growth Forecast. Sources: American Community Survey, 5-year estimate (2010) and SCAG 2016-2040 Regional Growth Forecast by Jurisdiction Report. *Los Angeles County data is for the Unincorporated data reported by SCAG 128 Section 2: Community Profile 2-3 B. Age Characteristics The age composition of a community is an important factor in evaluating housing needs because housing demand within the market is often determined by the preferences of certain age groups. Conventionally, young adults and seniors tend to favor apartments, low to moderate-cost condominiums, and smaller or more affordable single-family units because they tend to live on smaller or fixed incomes and have smaller families. The middle-aged demographic, persons between 35-years and 65-years, makes up the major portion of home buyers as well as the market for moderate to high-cost apartments and condominiums because they generally have higher incomes and larger families to accommodate. As the population moves through different stages of life, housing is required to accommodate new or adjusted needs. In order to produce a well-balanced and healthy community, where needs are met, it is essential that a community be provided with appropriate housing to accommodate needs of all ages. Figure 2-2compares changes in the age composition of Arcadia’s population from 2010 to 2019, while Table 2-2 compares the age distribution of Arcadia to surrounding jurisdictions. According to the American Community Survey (ACS), age distribution in Arcadia has remained relatively stable over the past decade. As shown in Figure 2-2, there has been a slight increase in the population aged 65 years and older (about 14 percent to 19 percent) and a slight decline in the population aged 25 to 44, showing aging in the overall population Overall, Arcadia’s age distribution has remained stable in the past decade. Figure 2-2: Age Distribution in Arcadia (2010-2019) Source: American community Survey, 5-Year Estimates, 2010, 2015, and 2019. Table 2-2 below shows the age characteristics of the City of Arcadia compared to surrounding jurisdictions and Los Angeles County. According to the 2019 ACS, Arcadia had a smaller young adult population (age 20 to 24) as well as a smaller percentage of residents under the age of 14 compared to nearby jurisdictions. Arcadia also has the highest percentage of their population above 45 years of age compared to nearby jurisdictions. Overall, the City’s population is older than that of most neighboring cities and the County of Los Angeles. Under 5 5 to 14 15 to 19 20 to 24 25 to 44 45 to 64 65 years + 2010 4.50% 12.50% 7.20% 5.80% 26.10% 29.10% 14.90% 2015 3.70% 13.10% 6.20% 6.10% 22.90% 31.20% 16.80% 2019 5.00% 12.60% 6.30% 3.80% 23.80% 29.30% 19.30% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 2010 2015 2019 129 Section 2: Community Profile 2-4 Table 2-2: Age Characteristics / Age Distribution Jurisdiction Under 5 5 to 14 15 to 19 20 to 24 25 to 44 45 to 64 65 years+ Monrovia 4.3% 12.7% 5.6% 6.1% 28.9% 28.5% 13.9% Pasadena 6.6% 9.0% 4.6% 5.7% 33.2% 24.9% 15.9% Arcadia 5.0% 12.6% 6.3% 3.8% 23.8% 29.3% 19.3% El Monte 5.8% 13.3% 6.5% 7.9% 28.5% 24.6% 13.4% Los Angeles County 6.1% 12.1% 6.4% 7.1% 29.8% 25.2% 13.2% Source: American Community Survey, 5-Year Estimates, 2019 C. Race/Ethnicity Characteristics Racial and ethnic composition within a City is important to understand and analyze the different needs and implications for housing in a community. It is common for different racial and ethnic groups to have different household characteristics, income levels, and cultural backgrounds which may affect their housing needs, housing choice, and housing types. Cultural influences may reflect preference for a specific type of housing. Ethnicity can also correlate with other characteristics such as location choices, mobility, and income. This is analyzed further in the Affirmatively Furthering Fair Housing discussion within the Housing Constraints section of the Housing Element. Figure 2-3 displays the 2019 American Community Survey racial and ethnic compositions data for both the City of Arcadia and the County of Los Angeles. According to the data, over half of the population in Arcadia identifies as Asian (64.2 percent) with the next largest population identifying White (30.7 percent), and 4.9 percent as Some Other Race. Conversely, the majority of Los Angeles County identified as White (54.4 percent) with 16.3 identifying as Asian and 22.2 percent identified as Some Other Race. Those who identified as two or more races accounted for 3.5 percent of the population in Arcadia and about four percent in the County. Los Angeles County had a larger percentage of the population who identified as Black, 9.2 percent compared to 2.7 percent in Arcadia. Additionally, both the percentage of American Indian and Native Alaskan population and the Native Hawaiian or Other Pacific Islander population were under two percent in the County and in Arcadia. 130 Section 2: Community Profile 2-5 Figure 2-3: Racial/Ethnic Composition, 2019 Source: American Community Survey 5-Year Estimates, 2019. Table 2-3 below displays Racial and Ethnic Composition data for Arcadia, the County and surrounding jurisdictions. Trends similar to those expressed in Figure 2-3 above show the population identified as Asian is the largest population while the second largest population identified as White in Arcadia. Overall, El Monte had the largest percentage of persons, of any race, who reported Hispanic or Latino (65.7 percent) and the second lowest percentage of persons who reported White (39.9 percent). Persons who reported Native Hawaiian or Other Pacific Islander counted as less than two percent in all jurisdictions as shown in Table 2-3. Overall, the racial and ethnic compositions of each city and the County of Los Angeles vary in many aspects, however groups such as American Indian and Alaska Native as well as Native Hawaiian and Other Pacific Islander make up small portions of all populations in Arcadia and its neighboring jurisdictions. White Black American Indian and Alaska Native Asian Native Hawaiian or Other Pacific Islander Some Other Race Two or More Races Hispanic or Latino (of any race) Arcadia 30.70% 2.70% 0.40% 64.20% 0.70% 4.90% 3.50% 11.10% Los Angeles County 54.40% 9.20% 1.60% 16.30% 0.60% 22.20% 4.00% 48.50% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% Arcadia Los Angeles County 131 Section 2: Community Profile 2-6 Table 2-3: Racial/Ethnic Composition, 2019 Jurisdiction White Black American Indian and Alaska Native Asian Native Hawaiian or Other Pacific Islander Some Other Race Two or More Races Hispanic or Latino (of any race) Monrovia 67.80% 6.80% 2.50% 17.10% 1.30% 11.00% 5.80% 41.10% Pasadena 54.60% 10.50% 1.20% 19.60% 0.50% 19.00% 4.90% 34.90% Arcadia 30.70% 2.70% 0.40% 64.20% 0.70% 4.90% 3.50% 11.10% El Monte 39.90% 0.90% 3.20% 29.10% 1.00% 29.40% 3.30% 65.70% Los Angeles County 54.40% 9.20% 1.60% 16.30% 0.60% 22.20% 4.00% 48.50% Source: American Community Survey, 5-Year Estimates, 2019 The Census and the 2019 ACS report significant changes in Arcadia’s racial and ethnic demographics from 2010 to 2019, displayed below in Table 2-4. The Asian population makes up the largest racial/ethnic group within Arcadia. The percentage of population reported Asian increased about 7.13 percent from 2010 to 2015 and another 6 percent from 2015 to 2019. The largest growth experienced in a population is shown in the Native Hawaiian or Other Pacific Islander population, which grew from 94 persons in 2010 to 418 persons in 2019 (over 344 percent change), however it should be noted that smaller group’s growth rates increase more quickly as individuals move into the group. The population reported as Some Other Race experienced an increase (20.98 percent increase) through 2015, then a 29.53 percent decrease through 2019. Persons of any race who reported Hispanic or Latino increased by 6.62 percent in the five years from 2010 to 2015 and decreased by 10 percent through 2019. There were two groups that experienced all around decreases in their populations from 2010 through 2019—American Indian and Alaska Native as well as White. The American Indian and Alaska Native population experienced a population decline of 28.2 percent from 2010 to 2019. The data shows that the population which identified as White decreased 4.84 percent from 2010 to 2015, and also decreased by 4.59 percent growth from 2015 to 2019 (from 18,726 to 17,866 individuals). Overall, many of the racial and ethnic groups are growing in Arcadia with a few exceptions. The Asian population has been the largest racial group within the City from 2010 and remains the dominant group as of 2019. Table 2-4: Racial/Ethnic Composition, 2019 Race/Ethnicity 2010 2015 2019 Percent Change 2010 to 2015 Percent Change 2015 to 2019 White 19,679 18,726 17,866 -4.84% -4.59% Black 654 1,069 1,573 63.46% 47.15% American Indian and Alaska Native 344 255 247 -25.87% -3.14% Asian 32,853 35,194 37,307 7.13% 6.00% 132 Section 2: Community Profile 2-7 Native Hawaiian or Other Pacific Islander 94 271 418 188.30% 54.24% Some Other Race 3,322 4,019 2,832 20.98% -29.53% Two or More Races 1,132 1,870 2,012 65.19% 7.59% Hispanic or Latino 6,725 7,170 6,453 6.62% -10.00% Source: American Community Survey, 5-Year Estimates, 2010, 2015, and 2019. 22 . Economic Characteristics Reporting and analyzing economic characteristics of a community is an important component of the Housing Element. The data provides valuable insight into Arcadia’s ability to access the housing market as well as identifies financial restraints consistent with housing needs and accommodations. Incomes associated with different types of employment and the number of workers in a household affect housing affordability and choice. Therefore, to consider a healthy balance between jobs and housing, it is important to consider the employment characteristics of a community. Local employment growth is linked to local housing demand, with the reverse being true when employment rates decrease. A. Employment and Wage Scale For a City to achieve a healthy balance between jobs and housing, it is important to consider employment, wage and occupational characteristics and growth changes. The SCAG Growth Forecast Report estimates a large range of employment growth for the City of Arcadia and nearby cities. The data is shown in Table 2-5. From 2016 to 2045 the County of Los Angeles is expected to gain 51,000 jobs, an 18.95 percent increase. From 2016 to 2045, Arcadia’s employment is expected to grow by 10.74 percent, creating 3,500 jobs. Nearby cities such as Pasadena and El Monte are expected to outpace Arcadia’s employment growth from 2016 to 2045 (20.65 percent and 21.24 percent respectively). Increased employment in Arcadia and the surrounding jurisdictions could indicates an opportunity to look at mixed-use development, particularly near transit centers that connect to jurisdictions with growing employment centers. Table 2-5: Employment Growth (2016-2045) Jurisdiction 2016 Projected 2045 Projected % Change 2016-2045 Numeric Change 2016-2045 Monrovia 22,700 24,800 9.25% 2,100 Pasadena 116,200 140,200 20.65% 24,000 Arcadia 32,600 36,100 10.74% 3,500 El Monte 30,600 37,100 21.24% 6,500 Los Angeles County 269,100 320,100 18.95% 51,000 Source: SCAG 2016-2040 Regional Growth Forecast by Jurisdiction Report. Analyzing the employment by sector in a city is important in understanding growth changes, income and wages, access to different types of housing, as well as what housing needs maybe be present. Table 2-6 displays the data for employment by sector for the City of Arcadia in both 2010 and 2019. The table shows that the largest percentage of employed persons in Arcadia work in education services, healthcare, and social assistance industries (22.57 percent in 2010 and 23.31 percent in 2019). Professional, scientific, management, and administrative services make up the second largest group of employment in Arcadia, however from 2010 through 2019, there has been a slight decline of persons participating in these fields. 133 Section 2: Community Profile 2-8 Persons working in finance and insurance as well as real estate and rental housing are the third largest employment groups in Arcadia in 2010 and remain as such through 2019. Both manufacturing and retail trade industries employ a fairly large percentage of Arcadia, however, the data shows a decrease of 26.28 percent in retail trade from 2010 through 2019. The City of Arcadia has a relatively high income with a median income about 38 percent higher than the County’s median income (see Table 2-15). Arcadia’s high median income could be due to the higher percentage of persons employed in education, professional, health care, and management industries. Table 2-6: Employment by Sector (2010 & 2019) Industry Sector 2010 2019 Percent Change 2010-2019 # of people employed % of City Employment # of people employed % of City Employment Agriculture, forestry, fishing and hunting, and mining 40 0.15% 101 0.38% 152.50% Construction 919 3.44% 864 3.28% -5.98% Manufacturing 2091 7.82% 2,363 8.98% 13.01% Wholesale trade 1987 7.43% 1,984 7.54% -0.15% Retail trade 2698 10.09% 1,989 7.56% -26.28% Transportation and warehousing, and utilities 915 3.42% 1,479 5.62% 61.64% Information 789 2.95% 806 3.06% 2.15% Finance and insurance, and real estate and rental leasing 3286 12.29% 2,775 10.55% -15.55% Professional, scientific, management, and administrative services 3770 14.10% 3,612 13.73% -4.19% Education services, health care, and social assistance 6035 22.57% 6,131 23.31% 1.59% Arts, entertainment, recreation, accommodation, and food services 2291 8.57% 2,081 7.91% -9.17% Other services (except public administration) 1057 3.95% 1,015 3.86% -3.97% Public Administration 865 3.23% 1,107 4.21% 27.98% Total 26,743 100.00% 34,867 100.00% 30.38% Source: American Community Survey, 5-Year Estimates, 2010 and 2019. In addition to reporting and analyzing employment sector trends, analyzing the unemployment rate is essential to understanding current housing affordability and needs, as well as projected needs. Economists identify a 3.5 to 4.5 percent unemployment as natural, in that it reflects the real voluntary economic forces 134 Section 2: Community Profile 2-9 within a City.1 According to the ACS data, (Table 2-7) in 2019, Arcadia experienced a 2.7 percent unemployment rate, slightly lower than the County’s 3.9 percent unemployment rate. Both Pasadena and El Monte had higher unemployment rates in 2019 compared to Arcadia (2.8 and 3.8 percent respectively). Arcadia had one of the lowest unemployment rates in the area in 2019. Table 2-7: Unemployment Rate, 2019 Jurisdiction Unemployment rate Monrovia 4.0% Pasadena 2.8% Arcadia 2.7% El Monte 3.8% Los Angeles County 3.9% Source: American Community Survey, 5-Year Estimates, 2019. *Population 16 years and over Table 2-8 displays the average annual wage for occupations compiled by the California Employment Development Department (EDD) for the Los Angeles County Metropolitan Statistical Area in 2021. The median income for the City is $93,574 (See Table 2-14). Management, Legal, and Healthcare Practitioners and Technical occupations were among the highest paying professions in the region. Additionally, occupations such as Architecture and Engineering as well as Computer and Mathematical occupations offer above median income pay. Life, Physical, and Social Science occupations offer just below median income salaries and are among the more common occupations in Arcadia. Table 2-8: Mean Salary by Occupation in Los Angeles County, 2021 Occupation Salary Management $140,550 Legal $137,750 Healthcare Practitioners and Technical $105,055 Architecture and Engineering $104,271 Computer and Mathematical $104,033 Life, Physical and Social Sciences $94,890 Business and Financial Operations $87,545 Education, Training and Library $75,433 Arts, Design, Entertainment, Sports and Media $90,874 Construction and Extraction $64,680 Protective Services $67,082 Community and Social Service $64,145 Installation, Maintenance and Repair $60,025 Sales $51,016 Office and Administration Support $48,540 1 Natural Rate of Unemployment, Its Components, and Recent Trends, Kimberly Amadeo, ed. Eric Estevez, August 30, 2020 135 Section 2: Community Profile 2-10 Production $43,266 Transportation and Material Moving $45,165 Healthcare Support $36,196 Building, Grounds Cleaning, and Maintenance $40,449 Personal Care and Service $41,313 Farming, Fishing and Forestry $37,535 Food Preparation and Serving Related $34,405 Source: California Employment Development Division, Occupational Wage data, 2020. 3. Household Characteristics A household is considered all persons who occupy one housing unit, as defined by the Census; this may include single persons living alone, families related through marriage, blood or adoption, domestic partnerships and unrelated individuals living together. Nursing facilities, residential care facilities, dormitories, and other group living situations are not considered a housing unit. Information on household characteristics is important in analyzing and understanding growth and determining the housing needs of a community. Income and affordability are best measured at the household level, as well as the special needs of certain groups, such as large families, single parent households, or low and extremely low income households. For example, if a City has a prominent aging population, who are homeowners but live on fixed incomes, it may consider implementing a home beautification assistance program. A. Household Type Table 2-9 displays American Community Survey data from 2019 reporting household characteristics for Arcadia and nearby jurisdictions. The ACS reported that the majority of households in Arcadia were married-couple family households (58 percent). All other surrounding jurisdictions have somewhat lower proportions of married family households when compared to Arcadia. Non-family households, which includes persons living in the same house who are not related, such as roommates, made up about 20 percent of all households in Arcadia in 2019. Female-headed households made up approximately 16.63 percent of total households in Arcadia. El Monte has a slightly higher proportion of female-headed households than Arcadia, however, the other surrounding jurisdictions, including Los Angeles County, have lower proportions of female-headed households in their overall household types. Overall, Arcadia’s breakdown of household characteristics is similar to surrounding jurisdictions and the County of Los Angeles. Table 2-9: Household Characteristics (2019) Jurisdictio n Married- couple Family Household s % of Total Household s Female- headed Household , No Spouse Present % of Total Household s Non- Family Household % of Total Household s Total Household s Monrovia 5,840 45.17% 1,964 15.19% 4,165 32.22% 12,928 Pasadena 22,980 41.61% 5,722 10.36% 23,983 43.43% 55,224 136 Section 2: Community Profile 2-11 Arcadia 11,357 58.18% 3,246 16.63% 3,931 20.14% 19,520 El Monte 14,672 49.05% 5,803 19.40% 5,950 19.89% 29,913 Los Angeles County 1,495,658 45.09% 488,776 14.74% 1,105,85 6 33.34% 3,316,795 Source: American Community Survey, 5-Year Estimates, 2019. Table 2-10 displays the changes in household types in Arcadia from 2010 to 2019. In 2010, the ACS estimated about 59 percent of all households to be married-couple family households, and this number remained nearly identical over the decade. Non-family households saw a decrease from 23.87 percent in 2010 to 20.14 percent in 2019, and female headed households increased from 12.58 percent in 2010 to 16.63 percent in 2019. Overall, total households in Arcadia increased moderately from an estimated 18,983 to an estimated 19,520 over the course of nine years. Table 2-10: Changes in Household Types Household Types 2010 Percent 2015 Percent 2019 Percent Married-couple Family Households 11,225 59.13% 11,494 58.77% 11,357 58.18% Female headed Household, No Spouse Present 2,388 12.58% 2,561 13.09% 3,246 16.63% Nonfamily Household 4,531 23.87% 4,482 22.92% 3,931 20.14% Total Households 18,983 100.00% 19,559 100.00% 19,520 100.0% Source: American Community Survey, 5-Year Estimates, 2010, 2015, 2019. B. Household Size Household size is an indicator of both population growth and the character of households. Average household size can be both a result and indicator of housing affordability and other household economic conditions, and it is important in understanding housing needs. Overcrowding is a result of having inadequate space for a household and considered a burden on a household; therefore, cities must analyze their average person per household size to appropriately respond to the type of housing needs in their community. Table 2-11 displays the average household size for Arcadia as well as surrounding jurisdictions and the County of Los Angeles. According to the ACS 2019 estimates, Arcadia’s average household size in 2019 was 2.95. Nearby jurisdictions had a range of 2.49 persons per household in Pasadena, to 3.82 persons per household in El Monte. The County of Los Angeles averaged an estimated 2.99 persons per household. Overall, the City of Arcadia was not demonstrated as an outlier, having an average household size consistent with neighboring cities and the County. 137 Section 2: Community Profile 2-12 Table 2-12 depicts the SCAG 2016 to 2045 Final Growth Forecast expected growth in Arcadia and surrounding jurisdictions. From 2016 to 2045, Arcadia is projected to experience a 16.84 percent in household growth. Among surrounding jurisdictions, El Monte is expected to experience the most population growth followed by Arcadia. The growth rates of Pasadena and Monrovia are lower at 5.94 percent and 10.87 percent respectively. Overall, Los Angeles County can expect a 24.10 percent increase in total households, from 3,319,000 in 2016 to 4,119,000 by 2045. C. Household Income Household income is directly connected to affordability; as household income increases, it is more likely that the household can afford market rate housing units, larger units, and/or can pursue ownership opportunities. As household income decreases, households tend to pay a disproportionate amount of their income for housing. This may influence increased incidence of overcrowding and substandard living conditions. The California State Department of Housing and Community Development (HCD) has identified the following income categories based on the Area Median Income (AMI) of Los Angeles County; x Extremely Low income: households earning up to 30 percent of the AMI x Very Low income: households earning between 31 and 50 percent of the AMI x Low income: households earning between 51 percent and 80 percent of the AMI x Moderate Income: households earning between 81 percent and 120 percent of the AMI x Above Moderate Income: households earning over 120 percent of the AMI Comprehensive Housing Affordability Strategy (CHAS) estimates based on 2013-2017 ACS data is used below. The extremely low, very low, and low income groups are combined and referred to as lower income Table 2-11: Average Household Size Jurisdiction Average Persons per Household Monrovia 2.83 Pasadena 2.49 Arcadia 2.95 El Monte 3.82 Los Angeles County 2.99 Source: American Community Survey, 5-Year Estimates, 2019. Table 2-12: Household Growth Forecast, 2016-2045 Jurisdiction 2016 2045 Percent Change from 2016 - 2045 El Monte 27,500 36,300 24.82% Pasadena 56,300 65,100 5.94% Arcadia 19,600 22,400 16.84% Monrovia 14,000 16,700 10.87% Los Angeles County 3,319,000 4,119,000 24.10% Source: SCAG 2016-2040 Final Growth Forecast by Jurisdiction Report. 138 Section 2: Community Profile 2-13 in the sites analysis as these categories qualify as needing affordable housing, however each category is analyzed individually here.2 In 2017, approximately 71.363.58 percent of Arcadia households earned moderate to above moderate incomes (Table 2-13), while the remaining 28.736.42 percent had incomes in the extremely low, very low and low income categories. There were more homeowners in the City than renters, and homeowners typically fell within higher income brackets than lower income earners. Renter income distribution was fairly even throughout the lowest three categories, however there were a large number of renters in the Moderate and Above Moderate categories. Overall, most people living in Arcadia earned within the Moderate and Above Moderate bracket and were homeowners. Table 2-13: Households by Income Category in Arcadia, 2017 Income Category (% of County AMI) Households Percent Total Households Owner Renter Owner Renter Extremely Low (30% AMI or less) 1,020 1,495 5.25% 7.69% 2,515 Very Low (31 to 50% AMI) 970 1,145 4.99% 5.89% 2,115 Low (51 to 80% AMI) 1,275 1,180 6.56% 6.07% 2,455 Moderate or Above (over 80% AMI) 8,450 3,910 43.47% 20.11% 12,360 Total 11,715 7,730 60.26% 39.76% 19,440 Source: Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS), 2013-2017. Household income is a good measure of a community’s affordability levels. The median household income in Arcadia is approximately 37 percent higher than the median income in Los Angeles County (see Figure 2-4 and Table 2-14). While Arcadia’s income is significantly higher than the County’s, it is comparable to the neighboring City of Pasadena’s median income of $83,068. Arcadia’s median income is significantly higher than El Monte and Monrovia. Overall, Arcadia has a higher income than the surrounding jurisdictions analyzed and Los Angeles County. 2 Federal housing and community development programs typically assist households with incomes up to 80 percent of the AMI and use different terminology. For example, the Federal Community Development Block Grant (CDBG) program refers households with incomes between 51 and 80 percent AMI as moderate income (compared to low income based on State definition). 139 Section 2: Community Profile 2-14 Figure 2-4: Median Household Income by City (2013-2017) Source: American Community Survey, 5-Year Estimates, 2019. Table 2-14: Median Household Income Jurisdiction Median Income Percent Above/Below Regional Median Monrovia $77,111 13.33% Pasadena $83,068 22.08% Arcadia $93,574 37.52% El Monte $49,003 -27.98% Los Angeles County $68,044 0.00% Source: American Community Survey, 5-Year Estimates, 2019. Figure 2-5 shows that more than half the households in Arcadia (60 percent) had an income of $75,000 or higher. Of the households which made more than $75,000 per year, the majority had a household income above $100,000 per year in 2019, with 16.7 percent households making $200,000 or more and 11.3 percent of households making $150,000 to 199,999. About thirteen percent of households made less than $24,000, and about 15 percent made $25,000 to $49,999. Overall, the majority of Arcadia’s households have moderate to high incomes. $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 Monrovia Pasadena Arcadia El Monte Median Income Los Angeles County Median Income 140 Section 2: Community Profile 2-15 Figure 2-5: Arcadia Income Breakdown by Category Source: American Community Survey, 5-Year Estimates, 2019. 33 . Housing Problems The Comprehensive Housing Affordability Strategy (CHAS) developed by the Census Bureau for the Department of Housing and Urban Development provides detailed information on housing needs by income level for different types of households in Los Angeles County including the City of Arcadia. The most recent available CHAS data for Los Angeles was published in August 2019 and was based on 2013-2017 ACS data. Housing problems considered by CHAS include: x Units with physical defects (lacking complete kitchen or bathroom); x Overcrowded conditions (housing units with more than one person per room); x Housing cost burdens, including utilities, exceeding 30 percent of gross income; or x Severe housing cost burdens, including utilities, exceeding 50 percent of gross income. The types of problems in Arcadia vary according to household income, type, and tenure (Table 2-15). These include: x In general, owner-households had a lower rate of reported housing problems with just 18.86 percent reporting a housing problem and 38.44 percent reporting no housing problem. x Approximately 20 percent of renters reported a housing problem and 17.86 percent reported no problems. Less than $10,000 6% $10,000 to $14,999 2% $15,000 to $24,999 5% $25,000 to $34,999 6% $35,000 to $49,999 9% $50,000 to $74,999 12% $75,000 to $99,999 13% $100,000 to $149,999 19% $150,000 to $199,999 11% $200,000 or more 17% 141 Section 2: Community Profile 2-16 x Additionally, about 13 percent of renters reported a severe housing problem and just over 11 percent of owners reported a severe housing problem. x Overall, renters were disproportionately affected by any housing problems in the City of Arcadia. Table 2-15: Housing Assistance Needs of Lower Income Households Housing Problem Overview* Owner % of total HH Renter % of total HH Total % of total HH Household has at least 1 of 4 Housing Problems 3,770 18.86% 3,955 19.78% 7,725 38.64% Household has none of 4 Housing Problems 7,684 38.44% 3,570 17.86% 11,255 56.30% Cost Burden not available, no other problems 260 1.30% 205 1.03% 465 2.33% Total 11,715 58.60% 7,730 38.67% 19,990 100.00% Severe Housing Problem Overview** Owner % of total HH Renter % of total HH Total % of total HH Household has at least 1 of 4 Severe Housing Problems 2,190 11.27% 2,475 12.73% 4,665 24.00% Household has none of 4 Severe Housing Problems 9,265 47.66% 5,045 25.95% 14,310 73.61% Cost Burden not available, no other problems 260 1.34% 205 1.05% 465 2.39% Total 11,715 64.40% 7,730 35.60% 19,440 100.00% Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2012-2016. Note: “% of total HH”= Percent of total Households in the City of Arcadia * The four housing problems are: incomplete kitchen facilities, incomplete plumbin g facilities, more than 1 person per room, and cost burden greater than 30%. ** The four severe housing problems are: incomplete kitchen facilities, incomplete plumbing facilities, more than 1.5 persons per room, and cost burden greater than 50%. A. Overcrowding A combination of low incomes and high housing costs forces households to live in overcrowded conditions. “Overcrowding” is generally defined as a housing unit occupied by more than one person per room in a 142 Section 2: Community Profile 2-17 house (including living room and dining rooms, but excluding hallways, kitchen, and bathrooms). An overcrowded household results from either a lack of affordable housing (which forces more than one household to live together) and/or a lack of available housing units of adequate size. Overcrowding can indicate that a community does not have an adequate supply of affordable housing, especially for large families. Overcrowded and severely overcrowded households can lead to neighborhood deterioration due to the intensive use of individual housing units leading to excessive wear and tear, and the potential cumulative overburdening of community infrastructure and service capacity. Furthermore, overcrowding in neighborhoods can lead to an overall decline in social cohesion and environmental quality. Such decline can often spread geographically and impact the quality of life and the economic value of property and the vitality of commerce within a city. The combination of lower incomes and high housing costs result in many households living in overcrowded housing conditions. Table 2-16: Overcrowding by Tenure in Arcadia Tenure Overcrowded Housing Units (1.0 to 1.50 persons/room) Severely Overcrowded Housing Units (>1.51 persons/room) Total Overcrowded Occupied Housing Units Count Percent of Total Overcrowded Housing Units Count Percent of Total Overcrowded Housing Units Count Percent of Total Overcrowded Housing Units Owner Occupied 131 17.82% 69 9.39% 200 27.21% Renter Occupied 419 57.01% 116 15.78% 535 72.79% Total 550 74.83% 185 25.17% 735 100% Source: American Community Survey, 5-Year Estimates, 2019. Table 2-16, above, displays data for overcrowding in Arcadia by tenure (homeowner or renter) in 2019. The ACS reported a total of 735 overcrowded and severely overcrowded units in Arcadia in 2019. Out of allOf allthe overcrowded units, 185, or 25.17 percent were severely overcrowded. Additionally, renters were more often disproportionately affected by overcrowding than homeowners as nearly 73 percent of all overcrowded and severely overcrowded units were occupied by renters. Although these numbers appear high, overcrowded units make up 3.8 percent of total households in Arcadia (735 households out of 19,520). Table 2-17, below, compares overcrowding in Arcadia to nearby Jurisdictions and the County of Los Angeles. According to the data, Pasadena experienced the highest rate of overcrowding for renters and the lowest for homeowners. Additionally, Arcadia was the only City with lower overcrowding for renters and higher overcrowding for homeowners than the County’s averages for owner occupied units and for renter occupied units. All other cities compared had a higher overcrowding rate for renters and a lower overcrowding rate for owner occupied units than the County. However, it should be noted that Arcadia has the one of the lowest amounts of overcrowded units overall, only second to Monrovia. 143 Section 2: Community Profile 2-18 Table 2-17: Overcrowded Housing Units by Tenure Jurisdiction Owner Occupied Overcrowded Units (>1.0 persons/room) Renter Occupied Overcrowded Units (>1.0 persons/room) Count Percent of Total Overcrowded Units Count Percent of Total Overcrowded Units Monrovia 134 19.56% 551 80.44% Pasadena 472 15.61% 2,552 84.39% Arcadia 200 27.21% 535 72.79% El Monte 1,215 21.08% 4,550 78.92% Los Angeles County 86,661 22.48% 298,761 77.52% Source: American Community Survey, 5-Year Estimates, 2019. B. Overpayment (Cost Burden) In Relationship to Income State and federal standards indicate that a household paying more than 30 percent of its income for housing is overpaying. Overpayment for housing can cause an imbalance on the remainder of a household’s budget. Understanding and measuring overpayment for housing in a community is an indicator of the dynamics of demand and supply. Per the Housing and Urban Development CHAS report, shown in Table 2-18, 11,075 households in Arcadia experienced some type of overpayment.3 Table 2-18 describes the relationship between overpayment and a household’s income. It is shown that families that have a lower household income (those below 50 of the HAMFI), are more likely to experience overpayment for housing, most likely because it takes a larger portion of their income. Approximately 56 percent of renter households that make less than 30 percent of the median income experience a cost burden of greater than 50 percent when paying for housing. The data in Table 2-18 shows that cost burden is more intense for renters in the lower income categories, however when household income increases, home owners are more highly affected. The general pattern is that the amount of households that experience high cost burdens (over 50 percent) decreases as incomes increase. 3 11,765 may double count households who reported a cost burden, for example a household may have a 50 percent cost burden and reported both a 30 percent and a 50 percent cost burden. 144 Section 2: Community Profile 2-19 Lower cost burdens, those less than 30 percent of a household’s income, generally dip down and then increase when the household income reaches 100 percent of the average. Table 2-18: Summary of Housing Overpayment Income by Cost Burden* Owner Renter Total Cost Burden > 30% % of Owner HH Cost Burden > 50% % of Owner HH Cost Burden > 30% % of Renter HH Cost Burden > 50% % of Renter HH Household Income is less-than or = 30% 725 20.28% 575 29.04% 1,120 31.46% 1,100 56.12% 3,520 Household Income >30% to less-than or = 50% HAMFI 605 16.92% 455 22.98% 1,095 30.76% 655 33.42% 2,810 Household Income >50% to less-than or = 80% HAMFI 605 16.92% 470 23.74% 775 21.77% 170 8.67% 2,020 Household Income >80% to less-than or = 100% HAMFI 220 6.15% 135 6.82% 175 4.92% 35 1.79% 565 Household Income >100% HAMFI 1,420 39.72% 345 17.42% 395 11.10% 0 0 2,160 Total 3,575 - 1,980 - 3,560 - 1,960 - 11,075 Source: Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2013-2017. * Cost burden is the ratio of housing costs to household income. For renters, housing cost is gross rent (contract rent plus utilities). For owners, housing cost is "select monthly owner costs", which includes mortgage payment, utilities, association fees, insurance, and real estate taxes. Note: HAMFI = HUD Area Median Family Income, this is the median family income calculated by HUD for each jurisdiction, to determine Fair Market Rents (FMRs) and income limits for HUD programs. HAMFI will not necessarily be the same as other calculations of median incomes (such as a simple Census number), due to a series of adjustments that are made. 145 Section 2: Community Profile 2-20 44 . Special Needs Groups Certain households may have more difficulty in finding adequate and affordable housing due to special circumstances, therefore, it is important to understand the demographics of persons with special needs to recognize how it influences the housing needs within a community. Special needs populations include seniors, persons with disabilities, female-headed households, large households, and farmworkers. In addition, many often have lower incomes because of their conditions. Table 2-19 displays the data for persons with special needs in Arcadia and Los Angeles County in the case of farmworkers. Table 2-19: Special Needs Groups Special Needs Groups # of People or Households Households with Seniors (65 years and over)* 7,202 Seniors Living Alone 1,694 Persons with Disabilities 10,062 Person with developmental disabilities 7,896 Large Households (5 or more persons per household) 2,179 Single-Parent Households 4,232 Single-Parent, Female Headed Households with Children (under 18 years) 3,246 People Living in Poverty 5,486 Farmworkers** 3,266 Migrant 22 Permanent 1,749 Seasonal - Homeless 106 Students 4,200 Source: American Community Survey, 5-Year Estimates, 2019 Los Angeles Point in Time Count, 2020. *This number represents the number of individual households that house seniors, not the number of individual seniors within these households. **Farmworkers in LA County A. Seniors The senior population, generally defined as those 65 years of age and over, have several concerns that impact housing, including limited and fixed incomes, high health care costs, transit dependency, and living alone. Specific housing needs of the senior population include affordable housing, supportive housing (such as intermediate care facilities), group homes, and other housing that includes a planned service component. A limited income for many seniors often makes it difficult to find affordable housing. Table 2-20 compares Arcadia’s senior population to Los Angeles County and nearby cities. The data reports than in Arcadia 19.08 percent of the population is age 65 or over, or a total of 11,095 persons. Among the senior population, 1,694 live alone, and 7,202 households have persons 65 years and over living in them (see Table 2-19). In 2019, the ACS reported 13.25 percent of Los Angeles County’s population to be age 65 or over, consistent with surrounding jurisdiction senior population. The highest senior population being Arcadia (19.08 percent), and the County having the lowest (13.25 percent). 146 Section 2: Community Profile 2-21 Table 2-20: Persons Age 65 and Over Jurisdiction Population Count Percent Monrovia 5,101 13.86% Pasadena 22,536 15.95% Arcadia 11,095 19.08% El Monte 15,558 13.47% Los Angeles County 1,335,978 13.25% Source: American Community Survey, 5-Year Estimates, 2019. In addition to overpayment problems experienced by seniors, due to relatively fixed incomes, many seniors experience various disabilities and self-care limitations. Approximately 5,626 seniors in Arcadia identified one or more disabilities in 2019, according to the ACS. Among these disabilities, the most common were ambulatory disabilities and independent living difficulty. B. Persons with Physical and Developmental Disabilities Physical and developmental disabilities can hinder access to traditionally designed housing units as well as potentially limit the ability to earn adequate income. Physical, mental, and/or developmental disabilities may deprive a person from earning income, restrict mobility, or make self-care difficult. Thus, persons with disabilities often have special housing needs related to limited earning capacity, a lack of accessible and affordable housing, and higher health costs associated with a disability. Additionally, some residents suffer from disabilities that require living in a supportive or institutional setting. Although no current comparisons of disability with income, household size, or race/ethnicity are available, it is reasonable to assume that a portion of persons with disabilities would have annual incomes within Federal and State income limits, especially those households not in the labor force. Furthermore, many lower income persons with disabilities are likely to require housing assistance and services. Housing needs for disabled persons are compounded by design issues and location factors, which can often be costly. For example, special needs of households with wheelchair-bound or semi-ambulatory individuals may require ramps, holding bars, special bathroom designs, wider doorways, lower cabinets, elevators, and other interior and exterior design features. Housing opportunities for persons with disabilities can be addressed through the provision of affordable, barrier-free housing. Rehabilitation assistance can be targeted toward renters and homeowners with disabilities for unit modification to improve accessibility. The American Community Survey (ACS) identifies six disability types: hearing disability, vision disability, cognitive disability, ambulatory disability, self-care disability and independent living disability. The Census and the ACS provide clarifying questions to determine persons with disabilities and differentiate disabilities within the population. The ACS defines a disability as a report of one of the six disabilities identified by the following questions: x Hearing Disability: Is this person deaf or does he/she have serious difficulty hearing? x Visual Disability: Is this person blind or do they have serious difficulty seeing even when wearing glasses? x Cognitive Difficulty: Because of a physical, mental, or emotional condition, does this person have serious difficulty concentrating, remembering, or making decisions? 147 Section 2: Community Profile 2-22 x Ambulatory Difficulty: Does this person have serious difficulty walking or climbing stairs? x Self-Care Difficulty: Does this person have difficulty dressing or bathing? x Independent Living Difficulty: Because of a physical, mental, or emotional condition, does this person have difficulty doing errands alone such as visiting a doctor’s office or shopping? According to the 2019 ACS, about 17 percent of Arcadia’s populations reported one or more disabilities as shown in Table 2-21. Of that 17 percent, persons with ambulatory difficulty comprised the highest percent (26.43 percent), persons with an independent Living Difficulty were the second largest group (21.53 percent), and the population with a Self-care Difficulty comprised about 15.51 percent of people with disabilities. Overall, persons over the age of 65 were more likely to have a reported disability. For the population under the age of 18, the most common reported disability was cognitive disabilities. Similarly, for those between the ages of 18 and 65, the most common reported disabilities were cognitive difficulty, ambulatory difficulty, and independent living difficulty. Table 2-21: Disability Status Disability Type Under 18 with a Disability 18 to 64 with a Disability 65 years and Over with a Disability Total Percent of Population with Disability Percent of Total Population Population with a Hearing Difficulty 19 273 1,152 1,444 14.35% 2.49% Population with a Vision Difficulty 34 280 388 702 6.98% 1.21% Population with a Cognitive Difficulty 213 689 628 1,530 15.21% 2.64% Population with an Ambulatory Difficulty 84 628 1,947 2,659 26.43% 4.59% Population with a Self-care Difficulty 140 376 1045 1,561 15.51% 2.69% Population with an independent Living Difficulty -- 633 1,533 2,166 21.53% 3.74% Total 490 2879 6693 10062 100.00% 17.37% Source: American Community Survey, 5-Year Estimates, 2019. *This number may double count as some persons report having one or more disabilities, therefore this total number differs from the total number of persons with a disability in Table 2-18. State law requires that the Housing Element discuss the housing needs of persons with developmental disabilities. As defined by federal law, “developmental disability” means a severe, chronic disability of an individual that: x Is attributable to a mental or physical impairment or combination of mental and physical impairments; x Is manifested before the individual attains age 22; 148 Section 2: Community Profile 2-23 x Is likely to continue indefinitely; x Results in substantial functional limitations in three or more of the following areas of major life activity: a) self-care; b) receptive and expressive language; c) learning; d) mobility; e) self-direction; f) capacity for independent living; or g) economic self- sufficiency; and x Reflects the individual’s need for a combination and sequence of special, interdisciplinary, or generic services, individualized supports, or other forms of assistance that are of lifelong or extended duration and are individually planned and coordinated. Per Section 4512 of the Welfare and Institutions Code, a "developmental disability" means a disability that originates before an individual attains the age of 18, continues, or can be expected to continue, indefinitely, and constitutes a substantial disability for that individual. A developmental disability includes intellectual disability, cerebral palsy, epilepsy, and autism. This term also includes disabling conditions found to be closely related to intellectual disability or to require treatment like that required for individuals with intellectual disability. This term does not include other handicapping conditions that are solely physical in nature. According to the San Gabriel/Pomona Regional Center– Disparity Data Report for 2017-2018, a total of 14,809 individuals from the San Gabriel Valley diagnosed with developmental disabilities received services. Of those who received services, 17.5 percent were White, 12.2 percent were Asian, 5.3 percent were Black/African American, and 8.4 percent reported Other. Approximately 56.4 percent of individuals reported their ethnicity as Hispanic or Latino.4 Many people with developmental disabilities can live and work independently within a conventional housing environment. Individuals with more severe developmental disabilities require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for persons with developmental disabilities is the transition from the person’s living situation as a child to an appropriate level of independence as an adult. There are several housing types appropriate for people living with a development disability: rent subsidized homes, licensed and unlicensed single-family homes, inclusionary housing, Section 8 vouchers, special programs for home purchase, HUD housing, and SB 962 (veterans) homes. The design of housing- accessibility modifications, the proximity to services and transit, and the availability of group living opportunities represent some of the types of considerations that are important in serving the needs of this group. Incorporating ‘barrier-free’ design in all, new multi-family housing (as required by California and Federal Fair Housing laws) is especially important to provide the widest range of choices for residents with disabilities. Special consideration should also be given to the affordability of housing, as people with disabilities may be living on a fixed income. C. Large Households Large Households are defined as households consisting of five or more persons. Such households comprise a special needs groups because many communities have a limited supply of adequately sized and affordable housing units. To save for other necessities such as food, clothing and medical care, it is 4 https://www.sgprc.org/home/showpublisheddocument?id=3571 149 Section 2: Community Profile 2-24 common for lower income large households to reside in smaller units with an inadequate number of bedrooms, which frequently results in overcrowding and can contribute to fast rates of deterioration. Securing housing large enough to accommodate all members of a household is more challenging for renters, because multi-family rental units are typically smaller than single-family ownership units. While apartment complexes offering two and three bedrooms are common, apartments with four or more bedrooms are rare. It is more likely that a large family will experience overcrowding in comparison to smaller families. Additionally, throughout the region, larger single-family homes, whether to rent or own, are generally not affordable to most lower income households. According to the ACS 2019 estimates, Arcadia had 2,179 large households. Of those large households, the largest group were five person households (7.3 percent of all large households). Table 2-22 also shows that, while there is a fairly even split of owner and renter large households, however homeowners were slightly more likely to have a household of five or more. Table 2-22: Large Households (by Tenure) Household Size Owner Renter Total Count Percent Count Percent Count Percent 5-Person Household 839 7.2% 590 7.5% 1,429 7.3% 6-person household 332 2.9% 76 0.7% 408 2.1% 7-or-more person Households 212 1.8% 130 1.1% 342 1.8% Total 1383 11.9% 796 6.9% 2,179 11.2% Source: American Community Survey, 5-Year Estimates, 2019. D. Single-Parent Households Single-parent households often require special consideration and assistance due to their greater need for affordable and accessible day care, health care, and other supportive services. Many female-headed households with children are susceptible to having lower incomes than similar two-parent households. Single mothers often face social marginalization pressures that often limit their occupational choices and income earning potential, housing options and access to supportive services. According to the 2019 ACS, the majority of single parent households in Arcadia are female headed (4.576.7 percent) as shown in Table 2-23 below. Los Angeles County estimated about 5.168.3 percent of single parent homes headed by females. Overall, there were 881 649 female-headed, single parent households living below the poverty level in Arcadia, about 20 4.5 percent of female-headed,all single parent households. The County of Los Angeles has a higher percent of female-headed single parent households living below the poverty line at 6.322.6 percent (211,462110,463 households). Table 2-23: Single Parent Households Jurisdiction Single Parent-Male, No Spouse Present Single Parent-Female, No Spouse Present Single Parent Female- Lead Households Living in Poverty 150 Section 2: Community Profile 2-25 Count % of Single Parent HH Count % of Single Parent HH Count % of Single Parent- Female HH Arcadia 2,356986 31.0923.3% 5,2223,246 68.9176.7% 6491,037 5.3020% Los Angeles County 640,636226 ,505 40.1461.67 % 488,776955 ,444 59.8668.3% 211,462110 ,463 6.3022.6% Source: American Community Survey, 5-Year Estimates, 2019. E. Farmworkers and Racetrack Workers Farmworkers are traditionally defined as persons whose primary incomes are earned through permanent or seasonal agricultural labor. Permanent farm laborers work in the fields, processing plants, or support activities on a generally year-round basis. When workload increases during harvest periods, the labor force is supplemented by seasonal workers, often supplied by a labor contractor. For some crops, farms may hire migrant workers, defined as those whose travel prevents them from returning to their primary residence every evening. Farm workers have special housing needs because they earn lower incomes than many other workers and move throughout the year from one harvest location to the next. The United States Department of Agriculture, National Agriculture Statistics provides data on hired farm labor across the United States. The data is compiled at both a state and county level. Within the County of Los Angeles, there were a total of 3,266 hired farm workers in 2017. A total of 1,749 are considered permanent, working 150 days or more and a total of 1,517 farmworkers were considered seasonal, working only 150 days or less. Additionally, the County of Los Angeles reported 395 total migrant farmworkers, 365 of which worked on farms with full time hired labor and 30 worked on farms with only contract labor. While there are farmworkers in the County of Los Angeles, Tthe City of Arcadia does not have any agricultural land nor does the City house a population of farmworkers. The Santa Anita Racetrack in the City of Arcadia the presence of the Santa Anita Racetrack brings seasonal racetrack workers in to live and work on the site. The racetrack provides housing for those who work with horses, backstretch workers, and more. This is a special population that is unique to Arcadia and perhaps several additional cities in the State. The City has identified this group as a special needs population that faces challenges with regards to housing and living conditions However it is important to note the median annual earnings for occupations associated with farm work. The median income for the agriculture, forestry, fishing, hunting, and mining industries in Arcadia is $36,516. The City’s median income is $93,574, thus the median income for farmworkers falls below 50 percent of the County’s median income and is considered a very low income population. While the City of Arcadia does not have farmworkers due to the lack of agricultural land, the presence of the Santa Anita Racetrack brings seasonal racetrack workers in to live and work on the site. The racetrack provides housing for those who work with horses, backstretch workers, and more. This is a special population that is unique to Arcadia and perhaps several additional cities in the State. The City has identified this group as a special needs population that faces challenges with regards to housing and living conditions. F. Students The college student population can be another factor in housing demand in the City. According to the 2019 5- year estimate there were a total of 3,216 enrolled undergraduate college students that reside in Arcadia 151 Section 2: Community Profile 2-26 and 984 enrolled graduate professional students. Combining the undergraduate and graduate enrolled population equates to 7.2 percent of the population of the City. Arcadia is located near the Point Loma Nazarene University Arcadia Campus, Kingston College and California Institute of Technology. The 2019 ACS reported that an estimated 4,200 persons in Arcadia were enrolled in college or graduate school, about 7.2 percent of the population. While many of the City’s college students most likely reside with their parents, some students reside in Arcadia in their own independent housing. The City of Arcadia recognizes that affordability of housing may provide a burden on students in the City. G. Extremely Low income Households and Poverty Status The 2013-2017 CHAS data indicates there were approximately 2,115 very low income households living in the City of Arcadia. Very low income households are those households that earn 50 percent or less of the median family income (MFI) for Los Angeles County. Extremely low income households are those households, which earn less than 30 percent of the MFI. There are approximately 2,515 extremely low income households in Arcadia (renters and owners). Table 2-24 below, includes data characterizing affordability and cost burden for various income groups. The four housing problems as identified by the 2013-2017 CHAS report are: x Incomplete kitchen facilities x Incomplete plumbing facilities x More than 1 person per room, and x Cost burden greater than 30%. The four severe housing problems, as identified by the 2013-2017 CHAS report are: x Incomplete kitchen facilities x Incomplete plumbing facilities x More than 1.5 persons per room, and x Cost burden greater than 50%. 152 Section 2: Community Profile 2-27 Table 2-24: Housing Problems for All Households (by Income Category) Income Category Owner Household has at least 1 of 4 Housing Problems % of Owner HH Household has none of 4 Housing Problems % of Owner HH Cost Burden not available, no other Housing Problem % of Owner HH Household Income is less-than or = 30% 720 3.70% 40 0.21% 260 1.34% Household Income >30% to less-than or = 50% HAMFI 605 3.11% 365 1.88% 0 0.00% Household Income >50% to less-than or = 80% HAMFI 615 3.16% 660 3.39% 0 0.00% Household Income >80% to less-than or = 100% HAMFI 215 1.11% 495 2.55% 0 0.00% Household Income >100% HAMFI 1,610 8.28% 6,130 31.52% 0 0.00% Total 3,770 19.39% 7,685 39.52% 260 1.34% Income Category Renter Household has at least 1 of 4 Housing Problems % of Renter HH Household has none of 4 Housing Problems % of Renter HH Cost Burden not available, no other Housing Problem % of Renter HH Household Income is less-than or = 30% 1,145 5.89% 145 0.75% 205 1.05% Household Income >30% to less-than or = 50% HAMFI 1,095 5.63% 50 0.26% 0 0.00% Household Income >50% to less-than or = 80% HAMFI 845 4.35% 335 1.72% 0 0.00% Household Income >80% to less-than or = 100% HAMFI 285 1.47% 505 2.60% 0 0.00% Household Income >100% HAMFI 580 2.98% 2,530 13.01% 0 0.00% Total 3,955 20.34% 3,570 18.36% 205 1.05% Total Households (Owner and Renter) 7,725 39.73% 11,255 57.88% 465 2.39% Source: U.S. Department of Housing and Urban Development (HUD), Comprehensive Housing Affordability Strategy (CHAS) 2013-2017. 153 Section 2: Community Profile 2-28 According to HCD extremely low income households are defined as households that earn 0 to 30 percent of the local annual median income (AMI). In Arcadia, the threshold is based on the Los Angeles-Long Beach-Glendale, CA HUD Metropolitan’s AMI. For a family or household of four people, the maximum amount of annual income in the Los Angeles-Long Beach-Glendale, CA HUD Metropolitan Area is $35,450 to be considered extremely low income.5 Table 2-25 below shows local, regional and statewide data regarding extremely low income households and their tenure. Arcadia has the lowest proportion of extremely low income households compared to the other jurisdictions. Los Angeles County has a higher proportion of extremely low income households in comparison to the State and City. It is more likely that an extremely low income household would own rather than rent housing in Arcadia than in the other jurisdictions. Although there is a higher rate of home ownership, there is a need for stable, affordable housing in the City. Table 2-25: Extremely Low Income Households1 by Tenure # of Extremely Low Income Owners % of Total Extremely Low Income HH # of Extremely Low Income Renters % of Total Extremely Low Income HH Total Extremely Low Income HH % of Extremely Low Income HH in the Jurisdiction Arcadia 1,020 41% 1,495 59% 2,515 13% Los Angeles County 136,760 21% 504,295 79% 641,055 19% California 536,865 27% 1,424,685 73% 1,961,550 15% Source: CHAS HUD. 2013-2017 data. Available at https://www.huduser.gov/portal/datasets/cp.html. 1- ELI is defined as households that earn less up to 30 percent of AMI. Table 2-26 shows cost burden for extremely low income households. The data shows 100 percent of ELI households experience some type of cost burden. Extremely low income families make up the largest group of people to experience a cost burden of greater than 50 percent. Extremely low income households also account for approximately 37 percent of households that experience cost burdens of greater than 30 percent. Table 2-26: Extremely Low Income Household Overpayment Cost Burden of >30 percent Percent of Extremely Low Income Households > 30 percent cost burden Cost burden of > 50 percent Percent of Extremely Low Income > 50 percent cost burden Total Extremely Low Income HH Experiencing Cost Burden Percent of Extremely Low Income Experiencing Cost Burden 5 HUD. 2021 Adjusted Home Income Limits. Available at https://www.huduser.gov/portal/datasets/home- datasets/files/HOME_IncomeLmts_State_CA_2021.pdf. Accessed on December 7, 2021. 154 Section 2: Community Profile 2-29 Extremely Low Income Owners 725 39% 575 34% 2,515 100% Extremely Low Income Renters 1,120 61% 1100 66% Total 1,845 100% 1,675 100% - - Source: CHAS HUD. 2013-2017 data. Available at https://www.huduser.gov/portal/datasets/cp.html. According the 2019 ACS, 5,677 persons were reported to be living in poverty in Arcadia, which is about 9.8 percent of the population for whom poverty status could be determined (57,775 people in the City). Figure 2-6 displays the percent of persons living in poverty by race or ethnicity and Hispanic or Latino origin, based on own race/ethnicity. The lowest percentage of persons identified as living in poverty was the American Indian and Alaska Native population at zero percent of all persons who reported American Indian and Alaska Native. Native Hawaiian and Other Pacific Islander was the highest percent of persons living in poverty at 26 percent of the population. Additionally, those who reported Hispanic or Latino origin and some other race were disproportionately affected by poverty at 17 and 16 percent. The White, Asian, and those who reported Two or More Races had some of the lowest levels of poverty at 9 percent, 10 percent and 9 percent respectively. Figure 2-6: Percent below Poverty Level, by Race and Hispanic or Latino Origin Source: American Community Survey, 5-Year Estimates, 2019. White alone 9% Black or African American alone 13% American Indian and Alaska Native alone 0% Asian alone 10% Native Hawaiian and Other Pacific Islander alone 26% Some other race alone 16% Two or more races 9% Hispanic or Latino origin (of any race) 17% 155 Section 2: Community Profile 2-30 H. Homeless Homelessness has become an increasingly important issue. Factors contributing to the rise in incidents of homelessness include unemployment and underemployment, a lack of affordable housing (especially for extremely low income households), reductions in funding allocations directed to the poor, and the de- institutionalization of persons who are defined mentally ill. State law mandates that municipalities address the special needs of homeless persons within their jurisdictional boundaries. “Homelessness” as defined by the U.S. Department of Housing and Urban Development (HUD) has recently been updated. The following list includes the updated descriptions for what constitutes “homelessness” and explains how the definition from HUD changed: x People who are living in a place not meant for human habitation, in emergency shelter, in transitional housing, or are exiting an institution where they temporarily resided. The only significant change from existing practice is that people will be considered homeless if they are exiting an institution where they resided for up to 90 days (it was previously 30 days), and were in shelter or a place not meant for human habitation immediately prior to entering that institution. x People who are losing their primary nighttime residence, which may include a motel or hotel or a doubled-up situation, within 14 days and lack resources or support networks to remain in housing. HUD had previously allowed people who were being displaced within 7 days to be considered homeless. The proposed regulation also describes specific documentation requirements for this category. x Families with children or unaccompanied youth who are unstably housed and likely to continue in that state. This is a new category of homelessness that applies to families with children or unaccompanied youth who have not had a lease or ownership interest in a housing unit in the last 60 or more days, have had two or more moves in the last 60 days, and who are likely to continue to be unstably housed because of disability or multiple barriers to employment. x People who are fleeing or attempting to flee domestic violence, have no other residence, and lack the resources or support networks to obtain other permanent housing. This category is similar to the current practice regarding people who are fleeing domestic violence. The HUD definition does not include the following: persons living in substandard housing (unless it has been officially condemned); persons living in overcrowded housing (for example, doubled up with others); persons being discharged from mental health facilities (unless the person was homeless when entering and is considered to be homeless at discharge); or persons who may be at risk of homelessness (for example, living temporarily with family or friends.) Table 2-27 below displays data from the Los Angeles County Point in Time Count. The Count gathers data on the homeless population in the County as well as in all jurisdictions within the County. According to the data from 2017 to 2018 Arcadia experienced a slight drop in the homeless population, then a significant increase through 2020. Overall, Arcadia’s homeless population was higher than nearby jurisdictions such as Monrovia and Pasadena (77 and 27 persons respectively). However, Arcadia did have a lower amount than El Monte. Overall, Arcadia has a moderate number of homeless individuals when compared to neighboring jurisdictions. Table 2-27: Homelessness in Arcadia and Surrounding Cities Jurisdiction 2017 2018 Count Change 2019 2020 Count Change 156 Section 2: Community Profile 2-31 Monrovia 42 69 27 80 77 -3 Pasadena 29575 27677 -2102 54229 27527 -215 Arcadia 17 15 -2 77 106 29 El Monte 240 517 277 428 433 5 Los Angeles County 45,979 45,039 -940 49,521 54,291 4,770 Source: Los Angeles Point in Time Count, 2017, 2018, 2019, 2020. Source for Homelessness in Pasadena: Pasadena Partnership. Pasadena Homelessness Count 2020. Available at https://pasadenapartnership.org/wp-content/uploads/2020/06/Pasadena-Homeless-Count_2020-FINAL.pdf. Accessed on December 20, 2021. The data in Table 2-28 displays data for the homeless population in Arcadia and surrounding cities as compared to the County of Los Angeles. Of the total homeless population in the County (54,291) the 106 in Arcadia make up about 0.2 percent. Similarly, Monrovia, El Monte, and Pasadena made up less than one percent of the County’s homeless population. Therefore, it can be determined that homelessness is not high in the area. Table 2-28: Homelessness in Arcadia and Surrounding Cities Jurisdiction 2020 % of County Monrovia 77 0.14% Pasadena* 27 0.02% Arcadia 106 0.20% El Monte 433 0.80% Los Angeles County 54,291 100% Source: Los Angeles County Point in Time Count, accessed on March 2021 *Data is for East and South Pasadena Combined 55 . Housing Stock Characteristics The characteristics of the housing stock, including growth, type, availability and tenure, age and condition, housing costs, and affordability are important in determining the housing needs for the community. This section details the housing stock characteristics of Arcadia to identify how well the current housing stock meets the needs of its current and future residents. A. Housing Growth As a built-out community, Arcadia experienced modest housing stock growth from 2010 to 2019. Table 2- 29 below displays American Community Survey data from 2010 to 2019 showing housing unit growth over the nine-year period. 157 Section 2: Community Profile 2-32 In 2010, the City had an estimated 19,488 housing units, which steadily increased over nine years to an estimated 21,386, an overall percent growth of 1.04 percent. Nearby jurisdictions experienced moderately the same increases in housing unit growth. For example, from 2010 to 2015 Arcadia experienced the highest growth in housing units (8.61 percent) when compared to neighboring jurisdictions (which saw anywhere from -3.45 percent growth to 2.86 percent growth in units). From 2015 to 2019, only Monrovia (- 1.33 percent) and El Monte (-5.47 percent) saw less housing unit growth than Arcadia (1.04 percent). Table 2-29: Housing Unit Growth (Growth Trends) Jurisdiction 2010 2015 2019 Percent Change 2010 to 2015 Percent Change 2015 to 2019 Monrovia 14,444 13,946 13,761 -3.45% -1.33% Pasadena 57,188 58,823 61,572 2.86% 4.67% Arcadia 19,488 21,165 21,386 8.61% 1.04% El Monte 28,810 33,029 31,223 14.64% -5.47% Los Angeles County 3,425,736 3,476,718 3,542,800 1.49% 1.90% Source: American Community Survey, 5-Year Estimates, 2010, 2015, and 2019. B. Housing Type Arcadia’s housing stock primarily consists of single-family housing units, which comprise nearly 60.27 percent of all housing units. The majority of the single-family housing available in Arcadia is detached housing, compared to 8.75 percent attached (which includes townhomes and condos). The housing stock may gradually become more diverse as housing needs in the City change throughout the years. Currently about 31 percent of all housing is multi-family, and under one percent are mobile homes. Overall, the City of Arcadia’s housing stock makeup is similar to the County of Los Angeles, where about 54.91 percent of all housing is single-family, about 43.5 percent is multi-family and about 1.61 percent are mobile homes. Table 2-30: Total Housing Units by Type Jurisdiction Single- Family Detached Single-Family Attached Multi-Family Mobile Homes Count Percent Count Percent Count Percent Count Percent Arcadia 12,890 60.27% 1,871 8.75% 6,615 31.0% 10 0.05% Los Angeles County 1,722,121 48.61% 223,134 6.30 1,537,818 43.5% 57,197 1.61% Source: American Community Survey, 5-Year Estimates, 2019. C. Housing Availability and Tenure Housing tenure and vacancy rates generally influence the supply and cost of housing. Housing tenure defines if a unit is owner-occupied or renter-occupied. The tenure characteristics in a community can 158 Section 2: Community Profile 2-33 indicate several aspects of the housing market, such as affordability, household stability, and availability of unit types, among others. In many communities, tenure distribution generally correlates with household income, composition and age of the householder. In 2019, the majority of single-family housing was owner-occupied, shown below in Table 2-31. When broken down by housing type, the data shows that majority of renters live in multi-family housing. The lack of renters in single family homes, both attached and detached, may be a correlation to housing affordability or size of households. It is common for renters to live in multi-family units, as renters often include nonfamily households such as roommates. Table 2-31: Occupied Housing Units by Type and Tenure (in Percent) Tenure Single- Family Detached Single-Family Attached Multi-Family Mobile Homes Total Housing Units Owner Occupied 9,453 units 81.4% 1,145 units 9.9% 1,001 units 8.6% 10 units 0.1% 11,609 units Renter Occupied 2,356 units 29.8% 595 units 7.5% 4,960 units 62.8% 0 units 0.0% 7,911 units Source: American Community Survey, 5-Year Estimates, 2019. As shown in Table 2-32, owners had a slightly larger average household size than renters in Arcadia, 3.01 to 2.85 respectively. Neighboring jurisdictions showed unsimilar trends with Monrovia, Pasadena, El Monte and Los Angeles County estimating larger average renter households than owner households. All municipalities listed except for Pasadena had a larger average owner household size than renter household size. Table 2-32: Average Household Size by Tenure Jurisdiction Owner Occupied Households (% of Total Households) Average Owner Household Size Renter Occupied Households (% of Total Households) Average Renter Household Size Monrovia 46.8% 2.56 53.2% 2.44 Pasadena 42.0% 2.77 58.0% 2.89 Arcadia 59.5% 3.01 40.5% 2.85 El Monte 40.0% 3.89 60.0% 3.77 Los Angeles County 45.8% 3.17 54.2% 2.83 Source: American Community Survey, 5-Year Estimates, 2019 159 Section 2: Community Profile 2-34 D. Vacancy Rates Vacancy rates are an important housing indicator because they indicate the degree of housing choice available in a community. High vacancy rates usually indicate low demand and/or high supply conditions in the housing market. Too high of a vacancy rate can be difficult for owners trying to sell or rent. Low vacancy rates usually indicate high demand and/or low supply conditions in the housing market. Too low of a vacancy rate can force prices up, making it more difficult for lower and moderate income households to find housing. Vacancy rates of between two to three percent are usually considered healthy for ownership housing, and rates of five to six percent are usually considered healthy for rental 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. Figure 2-7 shows the overall homeowner vacancy rate and renter vacancy rate in Arcadia, the County and nearby jurisdictions. According to the ACS data, in 2019, Monrovia had the highest rental vacancy rate at five percent. The City of Arcadia had a four percent rental vacancy rate, lower than Monrovia, and higher than Pasadena, El Monte and Los Angeles County. While the rental vacancy rate averages are considered healthy, the homeowner vacancy rates were all low, with Pasadena’s being the highest at two percent. Figure 2-7: Homeowner and Renter Vacancy Rates, 2019 Source: American Community Survey, 5-Year Estimates, 2019. Table 2-33 below displays the breakdown of type of vacant units in Arcadia. For rent units have the highest count of vacancy at 335 units, meaning that many of the vacant homes in Arcadia are on the market, and listed for residents looking to rent. There were 100 rented but unoccupied units in 2019 and 100 sold but 1.00% 1.50% 0.40% 2% 0.80% 3.4% 4.00% 5.10% 3% 2.40% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Los Angeles County Arcadia Monrovia Pasadena El Monte Homeowner vacancy rate Rental vacancy rate 160 Section 2: Community Profile 2-35 unoccupied units. In addition, there were zero units vacant for migrant workers and 182 units available for sale. Additionally, there were only 277 units vacant for seasonal, recreational, or occasional use. Table 2-33: Vacant Housing Units by Type, 2019 Type of Housing Estimate For rent 335 Rented, not occupied 100 For sale only 182 Sold, not occupied 100 For seasonal, recreational or occasional use 277 For migrant workers 0 Other vacant 872 Total 1,866 Source: American Community Survey, 5-Year Estimates, 2019. E. Housing Age and Condition Housing age can be an important indicator of housing condition within a community. For example, housing that is over 30 years old is typically in need of some major rehabilitation, such as a new roof, foundation, plumbing, etc. Many federal and state programs also use the age of housing as one factor in determining housing rehabilitation needs. Figure 2-8 displays housing stock age data in the City of Arcadia. According to the 2019 ACS, Arcadia had a large growth in housing development from 1950 to 1959. The majority of Arcadia’s housing was built between the years 1939 and 1969, about 60.01 percent. Overall, Arcadia’s housing stock is primarily older, meaning that the cost of updates and maintenance could be high for residents. However, the figure does show a slowing in housing production from 2000 on. 161 Section 2: Community Profile 2-36 Figure 2-8: Housing Stock Age in Arcadia, 2019 Source: American Community Survey, 5-Year Estimates, 2019. F. Housing Costs and Affordability Housing costs reflect the supply and demand of housing in a community. This section summarizes the cost and affordability of the housing stock to Arcadia’s residents. Table 2-34 displays data for the median home value in Arcadia, the County of Los Angeles, and surrounding jurisdictions. In 2019, the ACS estimated that the median value of a home in Los Angeles County was $538,200. In Arcadia, the same year, the median value of a home was $1,097,600. Overall, each of Arcadia’s neighboring jurisdictions had a median home value higher than the County’s with the exception of El Monte. Table 2-34: Median Home Value by Community, 2019 Jurisdiction Median Home Value Monrovia $663,400 Pasadena $785,700 Arcadia $1,097,600 El Monte $454,900 Los Angeles County $583,200 Source: American Community Survey, 5-Year Estimates, 2019. Table 2-35 shows that rent for a two bedroom unit in Arcadia experienced a two percent increase from $2,161 to $2,202 from 2018 to 2021. Three bedroom rentals saw the highest percent change from 2018 to Built 2014 or later Built 2010 to 2013 Built 2000 to 2009 Built 1990 to 1999 Built 1980 to 1989 Built 1970 to 1979 Built 1960 to 1969 Built 1950 to 1959 Built 1940 to 1949 Built 1939 or earlier Series1 1.20% 1.50% 6.10% 7.80% 10.10% 13.20% 15.10% 23% 13.90% 8.10% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00%Percent Built162 Section 2: Community Profile 2-37 2021 (9 percent), increasing from $3,137 to $3,440 while 4 bedroom rentals experienced a one percent decrease in cost ($4,090 to $4,060). Table 2-35: Average Monthly Rental Rates Unit Type January 2018 Average Monthly Rent January 2019 Average Monthly Rent January 2020 Average Monthly Rent January 2021 Average Monthly Rent Percent Change from 2018 to 2021 1 Bedroom $2,622 $1,521 $1,742 $1,666 -57% 2 bedrooms $2,161 $2,237 $2,280 $2,202 2% 3 Bedrooms $3,137 $3,072 $3,187 $3,440 9% 4+ Bedrooms $4,090 $4,100 $3,913 $4,060 -1% Source: Zumper, Arcadia Rentals Zumper Rent Index, accessed March 2021. *Percent Change from 2019 to 2019, 2020 rental data not available. Housing affordability can be inferred by comparing the cost of renting or owning a home in the City with the maximum affordable housing costs for households at different income levels. Taken together, this information can generally show who can afford what size and type of housing and indicate the type of households most likely to experience overcrowding and overpayment. The Federal Department of Housing and Urban Development (HUD) conducts annual household income surveys nationwide to determine a household’s eligibility for federal housing assistance. Based on this survey, the California Department of Housing and Community Development (HCD) developed income limits, based on the Area Median Income (AMI), which can be used to determine the maximum price that could be affordable to households in the upper range of their respective income category. Households in the lower end of each category can afford less by comparison than those at the upper end. The maximum affordable home and rental prices for residents in Los Angeles County are shown in Table 2-36. The data shows the maximum amount that a household can pay for housing each month without incurring a cost burden (overpayment). This amount can be compared to current housing asking prices (Table 2- 36) and market rental rates (Table 2-37) to determine what types of housing opportunities a household can afford. Extremely Low income Households Extremely low income households earn less than 30 percent of the County AMI – up to $24,850 for a one- person household and up to $38,300 for a five-person household in 2021. Extremely low income households cannot afford market-rate rental or ownership housing in Arcadia without assuming a substantial cost burden. Very Low income Households Very low income households earn between 31 percent and 50 percent of the County AMI – up to $41,400 for a one-person household and up to $63,850 for a five-person household in 2021. A very low income household can generally afford homes priced between $158,600 and $225,700, adjusting for household size. A very low income household at the maximum income limit can afford to pay approximately $878 to $1,268 in monthly rent, depending on household size. Given the cost of housing in Arcadia, persons or households of very low income could not afford to rent or purchase a home in the City. 163 Section 2: Community Profile 2-38 Low income Households Low income households earn between 51 percent and 80 percent of the County’s AMI - up to $66,250 for a one-person household and up to $ 102,200 for a five-person household in 2021. The affordable home price for a low income household at the maximum income limit ranges from $274,300 to $404,300. Ownership housing would not be affordable to low income households. A one-person low income household could afford to pay up to $1,499 in rent per month and a five-person low income household could afford to pay as much as $2,227. Low income households in Arcadia would not be able to find adequately sized affordable apartment units. Moderate income Households Persons and households of moderate income earn between 81 percent and 120 percent of the County’s AMI – up to $ 103,700 for a five-person household in 2021. The maximum affordable home price for a moderate income household is $278,800 for a one-person household and $411,400.00 for a five-person family. Moderate income households in Arcadia would not be able to purchase a home in the City. The maximum affordable rent payment for moderate income households is between $1,523 and $2,265 per month. Appropriately sized market-rate rental housing is generally affordable to households in this income group. 164 Section 2: Community Profile 2-39 Table 2-36: Affordable Monthly Housing Cost for Renters Annual Income Rent Utilities1 Total Affordable Monthly Housing Cost Extremely Low income (30% of AMI) 1-Person $24,850 $464 $157 $621 2-Person $28,400 $518 $192 $710 3-Person $31,950 $564 $235 $799 4-Person $35,450 $601 $285 $886 5-Person $38,300 $630 $328 $958 Very Low income (50% of AMI) 1-Person $41,400 $878 $157 $1,035 2-Person $47,300 $991 $192 $1,183 3-Person $53,200 $1,095 $235 $1,330 4-Person $59,100 $1,193 $285 $1,478 5-Person $63,850 $1,268 $328 $1,596 Low income (80% AMI) 1-Person $66,250 $1,499 $157 $1,656 2-Person $75,700 $1,701 $192 $1,893 3-Person $85,150 $1,894 $235 $2,129 4-Person $94,600 $2,080 $285 $2,365 5-Person $102,200 $2,227 $328 $2,555 Moderate Income (120% AMI) 1-Person $67,200 $1,523 $157 $1,680 2-Person $76,800 $1,728 $192 $1,920 3-Person $86,400 $1,925 $235 $2,160 4-Person $96,000 $2,115 $285 $2,400 5-Person $103,700 $2,265 $328 $2,593 Source: Housing Authority County of Los Angeles, Allowances for Tenant-Furnished Utilities and Other Services Report and California Department of Housing and Community Development, 2021 Income Limits and Kimley Horn and Associates Assumptions: 2020 HCD income limits; 30% gross household income as affordable housing cost; 15% of monthly affordable cost for taxes and insurance; 10% down payment; and 4.5% interest rate for a 30 -year fixed-rate mortgage loan. Utilities based on Los Angeles County Utility Allowance. 1Utilities includes basic electric, water, sewer/trash, refrigerator, and stove. 165 Section 2: Community Profile 2-40 Table 2-37: Affordable Housing Costs Annual Income Mortgage Utilities1 Tax and Insurance Total Affordable Monthly Housing Cost Affordable Purchase Price Extremely Low income (30% of AMI) 1-Person $24,850 $371 $157 $93 $621 $81,400 2-Person $28,400 $412 $192 $107 $710 $90,400 3-Person $31,950 $444 $235 $120 $799 $97,500 4-Person $35,450 $468 $285 $133 $886 $102,700 5-Person $38,300 $486 $328 $144 $958 $106,600 Very Low Income (50% of AMI) 1-Person $41,400 $723 $157 $155 $1,035 $158,600 2-Person $47,300 $813 $192 $177 $1,183 $178,200 3-Person $53,200 $896 $235 $200 $1,330 $196,600 4-Person $59,100 $971 $285 $222 $1,478 $231,000 5-Person $63,850 $1,029 $328 $239 $1,596 $225,700 Low income (80% AMI) 1-Person $66,250 $1,251 $157 $248 $1,656 $274,300 2-Person $75,700 $1,417 $192 $284 $1,893 $310,800 3-Person $85,150 $1,574 $235 $319 $2,129 $345,200 4-Person $94,600 $1,725 $285 $355 $2,365 $378,200 5-Person $102,200 $1,844 $328 $383 $2,555 $404,300 Moderate Income (120% AMI) 1-Person $67,200 $1,271 $157 $252 $1,680 $278,800 2-Person $76,800 $1,440 $192 $288 $1,920 $315,900 3-Person $86,400 $1,601 $235 $324 $2,160 $351,000 4-Person $96,000 $1,755 $285 $360 $2,400 $384,900 5-Person $103,700 $1,876 $328 $389 $2,593 $411,400 Source: Housing Authority County of Los Angeles, Allowances for Tenant-Furnished Utilities and Other Services Report and California Department of Housing and Community Development, 2020 Income Limits and Kimley Horn and Associates Assumptions: 2020 HCD income limits; 30% gross household income as affordable housing cost; 15% of monthly affordable cost for taxes and insurance; 10% down payment; and 4.5% interest rate for a 30-year fixed-rate mortgage loan. Utilities based on Los Angeles County Utility Allowance. 1 Utilities includes heating, cooking, water heating, water, sewer, trash collection, microwave, and refrigerator. All utilities are assuming electric as averaged on the County of Los Angeles Utility Allowance Schedule Utilities are based on Single Family Unit Size. 166 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-1 TTechnical Background Report SSection 3 Housing Constraints, Resources, and Affirmatively Furthering Fair Housing (AFFH) 167 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-2 Section 3: Housing Constraints, Resources, and Affirmatively Furthering Fair Housing (AFFH) A variety of constraints may affect the provision and opportunity for adequate and affordable housing in the City of Arcadia. Housing constraints consist of both governmental constraints, including but not limited to development standards and building codes, land use controls, and permitting processes; as well as nongovernmental or market constraints, including but not limited to land costs, construction costs, and availability of finances. Combined, these factors create barriers to availability and affordability of new housing, especially for lower and moderate income households. HCD requires that these constraints be evaluated as part of the Housing Element in order to understand barriers to housing and plan for the implementation of fair housing measures. This analysis is an important step in evaluating potential housing stock that can be allocated to all housing needs within the City. Factors that may constrain affordable housing in Arcadia will be analyzed in this chapter. 11 . Nongovernmental Constraints Nongovernmental constraints may largely affect the cost of housing in the City of Arcadia and can produce barriers to housing production and affordability. These constraints include the availability and cost of land for residential development, the demand for housing, financing and lending, construction costs, and the availability of labor, which can make it expensive for developers to build any housing, and especially affordable housing. The following highlights the primary market factors that affect the production of housing in Arcadia. A. Land Costs and Construction Costs Construction costs vary widely according to the type of development, with multi-family housing generally less expensive to construct than single-family homes. However, there is variation within each construction type, depending on the size of the unit and the number and quality of amenities provided. An indicator of construction costs is Building Valuation Data compiled by the International Code Council (ICC). The International Code Council was established in 1994 with the goal of developing a single set of national model construction codes, known as the International Codes, or I-Codes. The ICC updates the estimated cost of construction at six-month intervals and provides estimates for the average cost of labor and materials for typical Type VA wood-frame housing. Estimates are based on “good-quality” construction, providing for materials and fixtures well above the minimum required by state and local building codes. In February 2021, the ICC estimated that the average per square-foot cost for good-quality housing was approximately $125.18 for multi-family housing, $138.79 for single-family homes, and $156.95 for residential care/assisted living facilities. Construction costs for custom homes and units with extra amenities, run even higher. Construction costs are also dependent upon materials used and building height, as well as regulations set by the City’s adopted Building Code. For example, according to the ICC, an accessory dwelling unit (ADU) or converting a garage using a Type VB wood framed unit would cost about 168 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-3 $130.58 per square foot. Although construction costs are a significant portion of the overall development cost, they are consistent throughout the region. 1 Land costs pose a significant constraint to the development of affordable and middle income housing and represent a significant cost component in residential development. Land costs may vary depending on whether the site is vacant or has an existing use that must be removed. Similarly, site constraints such as environmental issues (e.g. soil stability, seismic hazards, flood risks) can also be factored into the cost of land. A May 2021 web search for lots for sale in the City of Arcadia returned 6 lots for sale ranging drastically in size and cost based on location.2 Lots for sale outside of the City’s primary center for housing and commercial business are not considered in this analysis as well as lots zoned for commercial use, as they will not be representative of size or cost of land which has been developed for residential use historically. The cost of vacant lots currently for sale near existing development in Arcadia, ranges from $1.15 million for 9,855 square feet south of Interstate 210, $2.29 million for 0.423 acres southwest of Interstate 210, to $3.48 million for 1.02 acres near the southwestern edge of the city. Overall, the estimated average cost of land in the City is about $101.67 per square foot. The cost of land in the City of Arcadia is considered expensive, selectively accessible, and can be considered a barrier or constraint to the potential development of housing. B. Availability of Financing The availability of financing in a community depends on a number of factors, including the type of lending institutions active in a community, lending practices, rates and fees charged, laws and regulations governing financial institutions, and equal access to such loans. Additionally, availability of financing affects a person’s ability to purchase or improve a home. Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose information on the disposition of loan applications and the income, gender, and race of loan applicants. The primary concern in a review of lending activity is to determine whether home financing is available to all residents of a community. The data presented in this section include the disposition of loan applications submitted to financial institutions for home purchase, home improvement, and refinancing in the Los Angeles-Long Beach-Glendale Metropolitan Statistical Area/Metropolitan Division (MSA/MD). Error! Reference source not found. below displays the disposition of loan applications for the Los Angeles- Long Beach-Glendale MSA/MD per the 2019 Home Mortgage Discloser Act report. According to the data, applicants in the 120% MSA/MD median income or more had the highest rates of loans approved. Of that income category, applicants who reported as white ethnicity had the highest percentage of approval and number of applications. Applicants in the less than 50% of the MSA/MD median income categories showed higher percentages of denied loans than loans originated. According to the data, applicants who reported as White ethnicity were, on average, more likely to be approved for a loan than another race or ethnicity.3 Given the relatively high rates of approval for home purchase, improvement, and refinance loans, home financing is generally available and not considered to be a significant constraint to the provision and maintenance of housing in Arcadia. 1 International Code Council. (2021). Building Valuation Data. Available at https://www.iccsafe.org/products-and-services/i- codes/code-development-process/building-valuation-data/. 2 Zillow. Arcadia CA Real Estate & Homes for Sale. Availabel at https://www.zillow.com/homes/Arcadia,-CA_rb/. Accessed on August 27, 2021. 3 FFIEC- MSA/MD Aggregate Reports. (2019). Disposition of applications by income, race, and ethnicity of applicant. https://ffiec.cfpb.gov/data-publication/aggregate-reports/2019/CA/31084/5 169 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-4 Table 3-1: Disposition of Loan Applications by Race/Ethnicity – Los Angeles-Long Beach-Glendale MSA/MD (2019) Applications by Race/Ethnicity Percent Approved Percent Denied Percent Other Total (Count) LESS THAN 50% OF MSA/MD MEDIAN American Indian and Alaska Native 24.16% 57.30% 19.66% 178 Asian 36.54% 42.13% 23.50% 1,932 Black or African American 41.98% 28.82% 31.98% 2,120 Native Hawaiian or other Pacific Islander 20.33% 67.03% 14.29% 182 White 44.14% 30.93% 27.22% 11,384 Hispanic or Latino 39.00% 36.23% 27.28% 6,559 50-79% OF MSA/MD MEDIAN American Indian and Alaska Native 36.97% 43.28% 22.27% 238 Asian 44.31% 34.08% 27.98% 2,873 Black or African American 42.75% 32.23% 29.11% 2,367 Native Hawaiian or other Pacific Islander 22.83% 62.20% 17.32% 254 White 48.99% 28.31% 27.75% 14,902 Hispanic or Latino 44.63% 32.50% 27.81% 10,611 80-99% OF MSA/MD MEDIAN American Indian and Alaska Native 41.44% 33.33% 27.03% 111 Asian 51.15% 27.37% 27.37% 1611 Black or African American 47.33% 27.31% 28.91% 1124 Native Hawaiian or other Pacific Islander 35.48% 47.31% 20.43% 93 White 53.61% 23.41% 27.73% 6,887 Hispanic or Latino 50.10% 26.66% 27.42% 4,974 100-119% OF MSA/MD MEDIAN American Indian and Alaska Native 42.05% 32.10% 29.26% 352 Asian 60.54% 19.94% 25.90% 5,869 Black or African American 49.93% 23.72% 30.51% 3,579 Native Hawaiian or other Pacific Islander 40.89% 39.86% 21.65% 291 White 60.13% 17.88% 27.40% 25,143 Hispanic or Latino 56.43% 20.69% 27.80% 16,541 170 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-5 120% OR MORE OF MSA/MD MEDIAN American Indian and Alaska Native 48.91% 23.88% 30.08% 871 Asian 62.94% 14.28% 27.54% 35,764 Black or African American 55.04% 19.47% 29.58% 11,611 Native Hawaiian or other Pacific Islander 54.18% 23.29% 27.19% 1052 White 64.87% 13.46% 25.98% 135,203 Hispanic or Latino 60.42% 16.47% 27.46% 42,722 Source: Consumer Financial Protection Bureau, Disposition of loan applications, by Ethnicity/Race of applicant, 2019. 171 Section 3: Housing Constraints, Resources and Affirmatively Furthering Fair Housing 3-6 C. Economic Constraints Market forces on the economy and the subsequent trickle-down effects on the construction industry can act as a barrier to housing construction and especially to affordable housing construction. It is estimated that housing price growth will continue in the city and the region for the foreseeable future. Moving into 2020, the economy was growing, California was experiencing a 1.6 percent growth in jobs from 2019 and experiencing all-time lows for unemployment rates. However, with the current COVID-19 pandemic, employment rates have been unstable. In May of 2020, unemployment within California increased to 15.6 percent. As of May 2021, the State’s unemployment rate has declined to 7.9 percent.4 A 2021 California Association of Realtors (CAR) report found that homes on the market in Los Angeles County experienced a 25.1 percent year to year increase and cost an average of $707,050 in April 2021; approximately $42,950 lower than the Southern California median home price in the same month ($750,000).5 According to the CAR First Time Buyer Housing Affordability Index, for 2021 the median value of a home in Los Angeles County was $580,010 with monthly payments (including taxes and insurance) of $2,830, requiring a minimum qualifying income of $84,900.6 Homes and cost of living in the City of Arcadia was reported higher than the State median housing and living costs, almost double.7 According to May 2021 data from Zillow, the median cost of a home is $1,131,169. Home values in the City have gone up 8.4% over the past year.8 22 . Governmental Constraints In addition to market constraints, local policies and regulations also affect the price and availability of housing and the provision of affordable housing. For example, State and Federal regulations affect the availability of land for housing and the cost of housing production, making it difficult to meet the demand for affordable housing and limiting supply in a region. Regulations related to environmental protection, building codes, and other topics have significant, often adverse, impacts on housing cost and availability. While the City of Arcadia has no control over State and Federal Laws that affect housing, local laws including land use controls, site improvement requirements, fees and exactions, permit processing procedures, and other factors can constrain the maintenance, development, and improvement of housing or create barriers to housing. A. Land Use Controls Cities in California are required by Law to prepare a comprehensive, long term General Plan to guide future development. The Land Use and Community Design Element of the General Plan establishes permitted 4 California Employment Development Department. California unemployment rate improves to 7.9% in May 2021. (2021). Available at https://www.edd.ca.gov/newsroom/unemployment-may-2021.htm. 5 California Association of Realtors (CAR). (2021). April home sales and price report. Available at https://www.car.org/aboutus/mediacenter/newsreleases/2021releases/apr2021sales. 6 CAR. Housing Affordability Index- First-time Buyer. Available at https://www.car.org/marketdata/data/ftbhai. Accessed on August 27, 2021. 7 Best Places. Cost of Living in Arcadia. Available at https://www.bestplaces.net/cost_of_living/city/california/arcadia. Accessed on August 27, 2021. 8 Zillow. (2021). Arcadia Home Values. Available at https://www.zillow.com/arcadia-ca/home-values/. 172