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25 Public Comment From:Cynthia Guerra <cynthiag@kennedycommission.org> Sent:Tuesday, September 15, 2020 5:04 PM To:City Clerk; Public Comment Cc:Cesar C Subject:Letter on Items 25 on Anaheim City Council Agenda for 9.15.2020 Attachments:Ltr_Anaheim Stakeholder Meeting_5.30.2019 (1).pdf; Ltr_Item 25- Anaheim Housing Ad-Hoc Committee Report_9.15.2020.pdf Hi, Please find attached the comments regarding today's Anaheim City Council meeting (9.15.2020):  Item #25: Report from Housing Ad Hoc Committee Comprised of Council Members O’Neil and Kring and Mayor Pro Tem Faessel Also included in this email is the letter sent to Council Member O'Neil, Faessel, and Kring on August 6, 2020 as a follow-up to the Affordable Housing Roundtable held on May 30th, 2020. Please confirm receipt of this email and let me know if you have any questions. Thank you for your help. Thank you, Cynthia Guerra Cynthia Guerra The Kennedy Commission Community Organizer 1 September 15, 2020 www.kennedycommission.org 17701 Cowan Ave., Suite 200 Irvine, CA 92614 Mayor Harry Sidhu and City Council Members 949 250 0909 City of Anaheim 200 S. Anaheim Boulevard Anaheim, CA 92805 RE: Item #25- Report from Housing Ad Hoc Committee Comprised of Council Members Neil and Kring and Mayor Pro Tem Faessel Dear Mayor Sidhu and City Council Members: The Kennedy Commission (the Commission) is a broad based coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $20,000 annually in Orange County. Formed in 2001, the Commission has been successful in partnering and working with Orange County jurisdictions to create effective housing and land-use policies that has led to the new construction of homes affordable to lower income working families. As the City Council reviews the report from the Housing Ad Hoc Committee, the Commission The first is that the City of Anaheim must strongly encourages the Council consider key elements. prioritize building affordable housing over above moderate housing. As the 2014-2021 Housing Element planning period comes to a close with one year left, it is clear that the City continues to have a very large need for housing at the very low and low income level and a disproportionate production of above moderate housing. For the 2014-2021 Housing Element planning period, the City has a Regional Housing Needs Assessment (RHNA) of 1,256 very low- and 907 low-income households. To-date, the City has built 124 or 10% of the 1,256 very low-income units and 121 or 13% of the 907 1 low-income units. However, for the above moderate-income units, the City outperformed and 2 exceeded the RHNA by constructing 7,182 or 287% of the 2,501 above moderate-income RHNA. While 948 above moderate units were added in 2019, only 53 units total were added at the very low With a remaining RHNA need of 1,950 lower income homes and an and low income levels. excess of 4,681 homes at the above moderate income level, it is urgent that the City evaluate its current policies and programs that have not facilitated the development of homes affordable to lower income households in the City. As demonstrated by the unbalanced housing production, production and have not y income working families. It clearly does not have problem producing above moderate housing. th The Commission participated in the Affordable Housing Roundtable held on May 30, 2019. Our recommendations at the Roundtable requested that the City implement a series of specific affordable housing policies and programs that would effectively increase the production of housing for . The Commission followed-up with a letter sent to the Councilmembers who formed the Ad-Hoc Committee, Council M and Kring, in which we summarized our policy and program recommendations. The letter is attached for your convenience. Unfortunately, the recommendations we provided over a year ago have not Housing Action Plan being 1 9 Annual Housing Element Progress Report, p. 2, April 2020. 2 Cit9 Annual Housing Element Progress Report, p. 3, April 2020. Working for systemic change resulting in the production of homes affordable to -income households Mayor Harry Sidhu and City Council Members September 15, 2020 reviewed today. Therefore, it is not surprising that the production imbalance between lower and above moderate income housing units persists. Committee members have expressed a xplore options and policies that are market driven and incentive-based, as opposed to mandates that potentially serve to increase the cost of 3 housing development and thereby exacerbate affordability. Unfortunately, as demonstrated by the current unbalanced housing production, this strategy has provided only incentives and concessions that produce above market rate housing that most working families in Anaheim cannot afford. To truly impact the need and increase the affordable housing the Committee must proactively prioritize and incentivize affordable housing through setting affordable housing goals and enacting effective and targeted policies. To--dri incentivized and produced above moderate housing and Currently market-rate developers can voluntarily choose to include affordable housing units, pay a voluntary contribution to affordable housing programs, or neither option. Since it is voluntary, many eschew either providing affordable housing units or provide the voluntary contribution. While opposed to 4 it is clear that the housing affordability crisis will only be addressed through stronger, clearer, and more specific affordability requirements. The following is a list of a few of the policies and programs that Commission has advocated for over the years that would increase the production of affordable housing at the very low and low income levels. The Council should also refer to the letter the Commission submitted a year ago in response to our participation in the Affordable Housing Roundtable (attached). 1)Create an Affordable Housing Strategic Plan that provides specific goals in the construction of affordable homes. This is not included in the Plan currently proposed in this agenda item. 2)Engage community stakeholder and experts on affordable housing solutions not just market rate developers. 3)Prioritize adopting a mixed-income housing ordinance, especially in the Platinum Triangle, Housing Overlays, and in other areas in which the City is giving away density and incentives. 4)Ensure that development of affordable housing is prioritized in the Platinum Triangle, Honda Center and Stadium Development opportunity sites. While market-rate housing has been developed in significant numbers in the current planning period, none of the thousands of units built in the Platinum Triangle are affordable to lower income households. The City needs to ensure that planning and housing approvals in the current and upcoming planning period provide access to housing opportunities for a full spectrum of incomes, especially lower income households in these economically segregated areas. 5)Examine policies implemented by other jurisdictions, like the City of Irvine and the City of Santa Ana which have both adopted an inclusionary housing policy that has resulted in robust production of affordable housing.By giving market-rate developers the option of choosing between making a percentage of their market-rate housing projects affordable and, alternatively, paying an in-lieu fee, these cities have been able to exceed An of affordable housing in their respective jurisdictions. The City of Irvine has produced a total City Council Staff Report, Item 25, p. 1, September 15, 2020. 3 4 City Council Staff Report, Item 25, p. 3, September 15, 2020. 23 Page of Mayor Harry Sidhu and City Council Members September 15, 2020 5 of 1,012 units at the very low and low affordability level, while the City of Santa Ana has 6 produced 794 units at these affordability levels. The inclusionary housing policy allows jurisdictions to facilitate the production of affordable housing by creating a fund that is available to subsidize affordable housing projects, which makes these projects more competitive when applying for state funds and tax credits. 6)Ensure that development of affordable housing is prioritized on the Housing Opportunity Sites identified in the Housing Element for planning period 2014-2021. The Report being using Opportunity Sites to facilitate 7 affordable housing. However, while market-rate housing has been developed on these sites, a minimal amount of affordable housing development has been produced on these sites. For example, a 20-acre market-rate development by TRI Pointe Homes, Inc. has been approved in two of these opportunity sites located in the Residential Overlay Zone. Upon its completion, 8 the development will provide 546 residential units at the above moderate income level. 7)Explore creative land use and zoning policies that facilitate the development of affordable housing. For example, include a housing overlay zone or religious institutions amendment. 8)Support legislation that removes CEQA requirements for affordable housing, not above moderate housing. 9)Identify and explore allocating city-owned sites that may be well suited for housing for which there are no other development plans. 10)Continue to support tenant based rental assistance programs that facilitates additional affordable housing for homeless and low-income individuals. Finally, the City emphasizes the need to collaborate with the Building Industry Asso 9 the City must make an developers to help the City address it However, explicit effort to also collaborate with The Kennedy Commission and other affordable housing stakeholders to develop policies and programs that will specifically address affordability. The very low and low income levels, is apparent in the critically low production of lower income homes and - will not address the affordability crisis. Thank you for your consideration of these concerns. We look forward to further conversation regarding this important matter. Please keep us informed of any updates and meetings regarding strategies to increase affordable homes for lower income households in the City. If you have any questions, please free to contact me at (949) 250-0909 or cesarc@kennedycommission.org. Sincerely, Cesar Covarrubias Executive Director 5 City of Irvineg Element Progress Report, March 2019. 6 City of Santa Anag Element Progress Report, p. 2, March 2019. 7 City Council Agenda Report for Item 20, p.1, June, 2019. 8 9 5, September 15, 2020. 33 Page of August 6, 2019 www.kennedycommission.org 17701 Cowan Ave., Suite 200 Irvine, CA 92614 949 250 0909 City of Anaheim 200 S Anaheim Boulevard 7th Floor Anaheim, CA 92805 RE: City of Anaheim Affordable Housing Discussion Dear Thank you for including the Kennedy Commission in the Affordable Housing Discussion at the City th of Anaheim on May 30, 2019. The Kennedy Commission (the Commission) is a broad based coalition of residents and community organizations that advocates for the production of homes affordable for families earning less than $20,000 annually in Orange County. Formed in 2001, the Commission has been successful in partnering and working with Orange County jurisdictions to create effective housing and land-use policies that has led to the new construction of homes affordable to lower income working families. As a follow up to the Affordable Housing Discussion, the Commission is providing the following recommendations that will help facilitate the development of homes affordable to lower income households. Given that the City has met and exceeded its production of units at the above moderate opportunities for production at the extremely low, very low, and low income levels. Housing Opportunity Sites The City needs to ensure that development of affordable housing is prioritized on the - Housing Opportunity Sites identified in the Housing Element for planning period 2014- 2021. While market-rate housing has been developed, a minimal amount of affordable housing development has been produced on these sites. Given the sharp disparity between the overall production of affordable housing and market-rate housing in the City, it is important that these sites be prioritized for affordable housing developments. Please see the th implementation progress. Recommendation: The City should create a requirement that any housing projects on the Housing Opportunity Sites include 15%-20% of housing affordable to very low and low income families, especially in the Platinum Triangle Mixed Use Overlay Zone. Affordable Housing Policies The City should adopt policies that will provide developers with incentives and rezoning - in consideration for developing affordable housing at the very low and low income level. This will result in a more robust and balanced production of affordable housing in the City. For example, the cities of Santa Ana and Irvine have both adopted Housing Opportunity August 6, 2019 Page 2 of 2 Ordinances.By giving developers the option of choosing between making a percentage of market-rate housing projects affordable and paying an in-lieu fee, these cities have been able ive jurisdictions. The 1 City of Irvine has produced a total of 1,012 units at the very low and low affordability level, 2 while the City of Santa Ana has produced 794 units at these affordability levels. A Housing Opportunity Ordinance allows jurisdictions to facilitate the production of affordable housing by creating a fund that is available to subsidize affordable housing projects, making these projects more competitive when applying for state funds and tax credits. Recommendation: Anaheim should follow the examples of the City of Irvine and the City of Santa Ana and adopt a Housing Opportunity Ordinance. Recommendation: The City should adopt an updated Affordable Housing Strategic Plan that provides specific goals in the construction of affordable homes. City Owned Sites - Department owns a significant inventory of housing sites that can be used to prioritize the development of affordable housing. Recommendation: The Community Development Department should issue and RFP for these City-owned sites that prioritizes the development of housing affordable to very low and low income families. Communication with Affordable Housing Stakeholders -The City should continue to engage affordable housing stakeholders to discuss other effective policies and programs that will facilitate the development of homes affordable to lower income households in the City. The Commission looks forward to partnering with the City to increase and preserve affordable homes for lower income households in the City. Please keep us informed of any updates and meetings regarding the dress rent increases in mobile home parks. If you have any questions, please free to contact me at (949) 250-0909 or cesarc@kennedycommission.org. Sincerely, Cesar Covarrubias Executive Director 1 City of Irvineg Element Progress Report, March 2019. 2 City of Santa Anag Element Progress Report, p. 2, March 2019.