RES-2018-106Resolution No. 2018- 10 6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM ADOPTING AN AFFORDABLE HOUSING
POLICY AFFIRMING THAT AFFORDABLE HOUSING IS A
PRIORITY IN THE CITY OF ANAHEIM
WHEREAS, the State of California has a statewide housing affordability crisis, which also
manifests at the regional and local level. Based on data recently produced by the Southern
California Association of Governments and California Housing Partnership Corporation, from
2000 to 2015, median rents in California have increased 25%, while median household income has
declined 4%. Statewide, more than 60% of very low-income families spend upwards of 50% of
household income on housing; and
WHEREAS, Orange County, California is among the top 10 least affordable metropolitan
markets in the nation, with 55% of Orange County renters spending more than 30% of income on
rent. The most recent Regional Housing Needs Allocation numbers indicate that 37,966 units are
needed to meet current housing needs in Orange County, and
WHEREAS, the Regional Housing Needs Allocation (RHNA) for the City of Anaheim for
the period of 2014-2021 indicates that the City has a total housing need of 5,702 units. From this
allocation, the RHNA designates:
a) 1,256 units for very low-income families, with incomes at or below 50% of Average
Median Income (AMI), or $52,150 for a family of four;
b) 907 units for low-income families with an AMI ranging from 51% to 80%, not to
exceed $83,450;
c) 1,038 units for moderate -income families with an AMI ranging from 81% to 120%,
not to exceed $105,600; and
d) 2,501 units for above moderate -income families with an AMI above 120%
WHEREAS, the housing needs of very low-income, low-income and moderate -income
families as prescribed by the Regional Housing Needs Allocation (RHNA) for the period of 2014-
2021 remain to be satisfied. A total of 1,175 units remain to be built for very low-income families,
796 units for low-income families and 993 units for moderate income families; and
WHEREAS, while the City has made substantial progress in certain income categories,
the housing needs of very low-income and low-income families as prescribed by the City of
Anaheim's Quantified Objective (QO) for the period of 2014-2021 remain to be satisfied. The QO
has the following outstanding goals: 2 units for very low-income families and 256 units for low-
income families. The City has exceeded the QO for moderate -income families by nine units; and
August 14, 2018
WHEREAS, the City has exceeded its goals for above moderate -income families, as
prescribed by the Regional Housing Needs Allocation (RHNA) and QO, for the 2014-2021
reporting period. A total of 5,240 building permits have been issued for new residential construction
since 2014, exceeding the RHNA and QO minimum requirements of 2,501 and
3,872 units, respectively; and
WHEREAS, demand for affordable housing in Anaheim continues to be significant. There
are currently over 25,000 families on the waiting list for the Housing Choice Voucher (HCV)
program, a rental subsidy program, and 20,000 families on the interest list for referrals for
affordable housing in Anaheim, units where families pay their own way but rents are generally
lower than those charged in privately owned rental housing; and
WHEREAS, the City and the former Redevelopment Agency, through a variety of
programs and incentives, has provided a broad spectrum of housing options for persons who live
and/or work in Anaheim. The City and the former Redevelopment Agency's efforts have resulted
in the creation of over 6,784 units since 1978, including 4,894 affordable units, to house its
residents; and
WHEREAS, in 2005, the City Council adopted the Affordable Housing Strategic Plan (the
"Strategy"), which set a goal of constructing 1,200 affordable housing units for very low to
moderate -income households. The City met this goal and subsequently adjusted the goal in 2009
through 2014 to 2,700. While the increased production goal was not met due to the loss of Housing
Set-aside funds, an outcome directly linked to the elimination of all Redevelopment agencies in
California, over 1,370 of rental and homeownership units were completed under the Strategy; and
WHEREAS, the City recognizes the importance of continuing to proactively develop
affordable housing in Anaheim to meet the need of families who live and work in the City, and
WHEREAS, at the City Council meeting of October 24, 2017, staff presented options for
the Council's consideration for approaches that may be used to increase the City's supply of
affordable housing. The options ranged from the adoption of a policy statement declaring
affordable housing as a priority in the City and encouraging voluntary actions and/or options which
would include mandatory approaches such as an inclusionary housing ordinance; and
WHEREAS, Council Members Kring and Barnes and Mayor Pro Tem Moreno volunteered
to work with staff to prepare an affordable housing policy statement for Council consideration and
adoption; and
WHEREAS, the City of Anaheim met and consulted with various stakeholders to solicit
input, including market -rate and affordable housing developers, affordable housing advocates other
real estate professionals; and
WHEREAS, housing developers have stated that their ability to provide affordable housing
would be positively affected by potential incentives, such as expedited processing, additional
flexibility on certain development standards, and potential fee deferrals and/or waivers, to facilitate
affordable units and mitigate the costs of doing so.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ANAHEIM DOES
HEREBY RESOLVE AS FOLLOWS:
August 14, 2018
Section 1. The City Council, by this resolution, affirms that affordable housing is a
priority in the City of Anaheim and is adopting a policy statement that encourages a dialogue
between City staff and all developers of upcoming rental and for -sale housing proposed in Anaheim
to consider options and approaches for addressing the City's affordable housing needs, as set forth
in the Housing Element of the City's General Plan, and other documents that guide the City's
affordable housing goals.
The policy statement is not an absolute requirement to produce affordable housing units; however,
it is the expectation of City leaders that developers will engage earnestly and objectively in
discussions with City staff as projects are contemplated and proposed that result in the consideration
of viable options for the creation of affordable housing to the extent feasible.
By way of examples, this may include setting aside or designating a certain number of affordable
housing units within proposed housing projects, offering buyer or rental incentive or assistance
programs; down payment assistance programs to assist income -qualified first-time homebuyers;
partnering with and assisting a non-profit organization(s) pursuing affordable housing projects in
the City, including the provision of "in-kind" services; and/or other options that City deems in
furtherance of its affordable needs, goals, and objectives.
The City recognizes that there can be financial implications associated with the delivery of
affordable housing. As such, the City is committed to being a partner in the production of affordable
housing that is responsive to market conditions through the creation of the Anaheim Affordable
Housing Action Plan (AHAP) that would be subject to the review and approval of the City Council.
The AHAP is attached hereto as Exhibit "A" and is incorporated herein by this reference. The
objectives of the AHAP are as follows:
Regulatory Relief
Continue the City's commitment to reducing bureaucracy by providing relief from regulations that
create barriers to the development of affordable housing. Efforts to reduce regulations could
include:
a) Ensuring that the City's ordinances and programs are consistent with State laws that
facilitate the production of affordable housing;
b) Allowing for the development of all housing product -types, including creative housing
solutions for all income levels; and
c) Encourage the State to further streamline the requirements of the California Environmental
Quality Act (CEQA) and its processes to alleviate challenges and impediments to affordable
housing production, including broadening exemptions for affordable housing projects that
meet certain criteria.
Process Incentives
Work with stakeholders to develop an affordable housing incentive program that reduces costs
and/or development time during the permitting process. Such incentives could include deferinent
and/or waiver of certain development impact fees for developers who provide affordable units or
otherwise make provisions for assisting the City in addressing its affordable housing needs.
August 14, 2018
Middle -Income Housing
Work with stakeholders to develop a middle-income housing program that promotes and
incentivizes entry-level rental and for -sale affordable housing for individuals earning middle-class
incomes. The vast majority of new market -rate housing units produced are at prices at the top of the
market. In addition, state and federal funding for the development of new housing typically target
very low and low-income families and individuals. As a result, this middle-income group, which
includes professionals such as schoolteachers, healthcare workers, public safety personnel,
engineers, etc., is quickly losing the ability to afford housing. The program would not compete with
other housing tools that target very low and low-income individuals, but rather create another
available option to increase housing supply and improve affordability.
Affordable Housing Ambassador Program
Develop an affordable housing ambassador program in which where the City would designate a
staff person(s) to promote and facilitate the development of affordable housing in Anaheim. The
program could include the following:
• First point of contact on any affordable housing projects
• Meet with market -rate developers to promote affordable housing
• Usher housing projects through the entitlement and permitting process
• Foster relationships with housing stakeholders
• Help educate residents on the need and value of well-designed affordable housing projects
• Develop conceptual site design and massing illustrations on potential development sites
and promote them to developers
• Create an affordable housing marketing program
Affordable Housing Development Funding
Ensure that the City remains competitive to receive State and Federal funding, leverages the
Anaheim Housing Authority's remaining resources and assets to maximize the production of
affordable housing, and encourages the State to adopt and pursue funding sources for affordable
housing that can replace those lost through the elimination of redevelopment agencies.
August 14, 2018
THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY
THE CITY COUNCIL OF THE CITY OF ANAHEIM THIS 14 (4") DAY OF
August , 2018, BY THE FOLLOWING ROLL CALL VOTE:
AYES: Mayor Tait and Council Members Moreno, Murray, Vanderbilt,
Barnes, Kring, and Faessel
NOES: None
ABSTAIN: None
ABSENT: None
CITY OF ANAHEIM
By:
Mayor
City—Clerk of the City of
Anaheim
August 14, 2018
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CLERK'S CERTIFICATE
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LINDA ANDAL, City Clerk of the City of Anaheim, do hereby certify that the foregoing is the
original Resolution No. 2018-106 adopted at a regular meeting provided by law, of the Anaheim
City Council held on the 14th day of August 2018 by the following vote of the members thereof:
AYES: Mayor Tait and Council Members Moreno, Vanderbilt, Murray, Barnes,
Kring, and Faessel
NOES: None
ABSTAIN: None
ABSENT: None
IN WITNESS WHEREOF, I have hereunto set my hand this 15th day of August, 2018.
CLERK O� THE CITY OF ANAHEIM
(SEAL)