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Home My WebLink AboutRESO 5956' • ORIGINAL RESOLUTION NO. 5956 RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO APPROVING AMENDMENTS TO THE HOUSING ELEMENT OF THE 1980-1995 COMPREHENSIVE PLAN WHEREAS, on February 2, 1981, the City Council approved tt.e Housing Element as part of the 1980-1995 Palo Alto Comprehensive Plan; and WHEREAS, State law (Government Code Articles 5 and 10.6) requires localities to adopt Rousing Elements which conform to State Guidelines; and WHEREAS, on February 13, 1981, the Housing Element was sub- mitted to the State Department of Housing and Community Development (•nco•) for official review and coJ11J1en~1 and WHEREAS, the City received the official review from the BCD on June 30, 1981; and WHEREAS, the Planning staff prepared amendments to the Housing Element to respo1ld to BCD's comments and submitted the ~econnended allle'ndments to the Planning Commission on August 21, 19811 and WHEREAS, on August 26, 1981, the Planning Commission unani- mously recommended that these amendments be approved by Council; NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows: SECTION 1. The Council hereby approves the Planning Co:nlllis- sion's recommended amendments to the Housing Element of the 1980-1995 Palo Alto Comprehensive Plan (Exhibits 1, 2, and 3 attached hereto). SECTION 2. The Council finds that none of the provisions of this resolution will have a significant adverse environmental iapact. INTRODUCED AND PASSED: September 14, 1981 AYES: Bechtel, Fazzino, Fletcher, Henderson, Klein, Levy, Renzel, Witherspoon NOES: None ABSTENTIONS: None ABSENT: Eyerly APPROVED: • DHIBIT 1 ROUSUI'# ELEMENT AMENDMENTS INFORMATION SUPPLEMENT DSIDENTIAL DEVELOPMENT POTENTIAL FOR. VACANT PAilCELS {Addition to '"Looking to 1990~, page 6) ID Auguat, 1980, only 109 acres of vacant residentially zoned land wre left in Palo Alto. About 50 of these are zoned RM-4. This zone allows 20 to 35 dwelling units per acre. Stanford University owns 46 of these 50 acres and is planning to build a variety of umltiple-family units serving a range.of household incomes. Six other acres are zoned RM-5, which allows 35 to 45 units per ecre. · The remaining 53 acres are zoned for lower density housing~ including 44 acres zoned R-E and R-1, 2 acres zoned R-2, 2 acres zoned RM-1, 4 acres zoned RM-2, and I acre zoned RM-3. t.nd zoned for non-residential use will provide some opportunity for m:>re housing. Surplus school sites and other properties zoned for public facilities .have been analyzed for their housing potential. The plan for the 20-acre Termau School site calla for 80 to 92 units for f aallies and se'f\iora to be built on four acres. Vacant commerci.ally zoned land also offers the opportunity for more housing. This property allo~o construction of multiple-family housing at the same density as the City's highest-density residential zone. The City bas also aanded its Zoning Ordinance to encourage mixed commercial and residential propert.y on co111111ercially zoned land. Sev~n acres of vacant land are zoned Comaunity Commercial. A mixed-use development of over four acres of this land at Park Boulevard and California Avenue recently approved by the Council and at the permit process stage in the fall of 1981 would provide 173 condominium u.uita. Seventeen of the• will be sold under the Below Market "Rate (BMR.) prograa, which generally serves those who earn less than 120 per cent of the County median income. A second 0.9 .acre site, the Birch-Grant parcel, contains O.S acres soned Co1111Unity Co11111ercial and 0.4 acres zoned RM-5. This site is being considered for 30 to 40 units of low-and-moderate-income housing. The remaining acres are scattered thror..,g:r>~·t the Downtown area~ generally in parcels less than 5, 000 square feet. Sixty-nine acrea of vacant industrially zoned land re.uin.. This land is leaa likely to be used for housing than commercial land. Prograa 8 of the Housing llement gives more incentive to use some of this land for housing. The "rogra• will be iaple•nted in the zoning ordinance by changes such as increasing the _ llaltiwu• density permitted for residential uses in industrial di•tricts and elinraating useable open apace requirenenu for aixed use develop•nt.a • • l • f t I j ' • ~- 1 l I ] ' Wearly 4,600 acre• of land. in Palo Alto are zoned for Open Space ••• Controlled Developaeac. Thi• land is generally remote, highly enviroll81!ntally •ea•itive, and lacks public ser9ice. As of August, 1981, the City wa• coneidens.ig development of a .axiaua of 51 unit• of clutter h~aing on a ... 11 portion _of the Sl5 acre Arastra pr_operty. ledeveloping some ar~•s and increasing the denaity in others vill give more opportunities to increa•e the bou1ing supply. Progr .. l, which calla for a Cottage Duplex ione, is llll!ant to make it easier to build lS>r~ housing on •uitable land. Program 9 encourages the development of residential unite on air apace over public or private parking lots. The Lot Q air rights project in the plaunin~ stages in 1981 proposes 31 to ~S housing units. Taken ., a whole, development on this remaining land will provide a range of housing type, size, and price. Affordable hou~ing for lov-and-modt!rate income persona i• now being consider"!d on the Terman and Birch-Grant sites. Other surplus pi-opertiea and all residentially zoned sites are considered potentially auitable for non-market-rate housing. Any housing project of 10 o~ more units anywhere in the City will b.a rt!quired to provide low-income or 'llDderate-income unit• under Program 17. Assisted housing must conform to state and federal •ite aud design standards as contained in the City's Rousing Assistance Plan. There are enough aites avail&ble to use all the state and federal subsidies likely to be available to Palo Alto ontil 1984. Palo Alto will try to use all available federally subsidized Section 8 New Construction units; potential aites include the Terman and Birch-Crant projects. The City bas also approved atandarda to be used in locating manufactured housing. An ordinance h~s been pa1sed tllbicb allows manufactured housing on permanent foundations to be located in residential aonea. bhibit 1, Page 2 • DBUIT 2 BOUSIIC !LEM!lft' AMEMlmMrS ROUSillG RUD, OBJEC?IVIS MD PR.OGIWI mAL3 Thi• hou•ins aeed• •••e•a.nent include• an affordability eati .. te, rebabilitatioa esci .. te, and new conatruction projected need ,eati.Bate. Affordabilit_y Among the households in Palo Alto earning low and very low incomes, there are there are 3,350 households spending '8Jre than a 4uarter of their incomes for ho.aaing. Of the 3,350 households, 703 households are elderly, 2,512 are house- hold with 4 or less persons, and l3S are households with 5 or .,re persons (Tabulated from 1975 Special Census aod 1979-82 Housing Assistance Plan). lebabilitation 525 housing units in Palo Alto are ia substandard condition but suitable for rehabilitation. Theee include 132 unit• occupied by ovnen and 393 occupied by reatera. (Source: 1979-82 Housing Assistance Plan.) Rew Construct~ Bmplo,.ent forecast• for 1980 to 1985 show that Palo Alto needs 2767 more housing Ul\ita if each new worker is to have an opportunity to live in Palo Alto. (1980-95 Comprehensive Plan, Employment Element.) Palo Alto can expect 1200 new units by 1985, a•euaing curre~t development patterus continue, leaving a dttficiency of 1567 units. A variety of housing pr.ograms attempts to reduce this deficiency. Program 8, for eZ811ple, encourag~s incentives for industrial, retail, and office developcents to provide SOiie housing on non-residentially aoned sites. Progr .. 9 encourages the development of residential units on air apace over parking lots. The City5a land bank program is continued through Progr .. 14. Thia progr .. provides for City's purchase or reaale of sites to developers who provide low and ..,derate cost housing. Pive Per Cent of Need Standard The Aaaociation of Bay Area Governments has established a standard for member agencies of addressing fi'fle per cent of the unmet affordability and rehabilitation need annually. This -•n• that each year 168 lower-income houeeboldb (32 Elderly, 126 Small Family, 7 Large Family) who are overpaying for housing ar~ to be assisted and that 2S sub•taadard units are to be rehabilitated (6 owner occupied and 19 rental). The City is committed to .. eting it• housing need•, and ia r~r•uing these goals through uee of all &Yailable Pederal1 State and local aubeidie• anil through the uae of local f!O'Nlr• • Tbeee objective• ~ progr ... address the first three year• of the i~entified houaing need. . ,j '•' .. i 01.JECrl\I! 1. v .. Miai ... Lot-Ii•• ltaa4ar4e. ' S • '°"i .. 45ottqe-Dtapl.ea: IOM 01.11cr1Y1 •inuia Diwnit1 91 a..si .. O,,Ortwaitiu _, l!Hn ....... i ... 1.,,1, h:ovw •· PrMi• 1-.ati'" &r 1 .. w.atut .. ._ ... w..ctaur .._. ...... • TMU I Impl~acatioa cro.1e 1111 -lt14 0n1oiq 0971 Zonina Ordiaaec) Onaoiaa 0911 Zonina OdiUftCe) 0n1oi111 (R•1 Zone. 1971) 1982: t.•ianatioa of .W.itioHl Anu witb~n a-1 ion.. to •llow Cott•&• Uaite. Or.going (Zoaia1 Or•iaance. 89'~1i'l'i•iCM1 Ordinuce0 loueiq ud hil•U:ia Coda. 0.1oinr 0.1oia1 1Sta: ;...tjuc-or t.o l'loor An• .. tie te IDduetri•l lone• to !Den ... Ali....le ... i .. ati•l a...it1. ltl4• ll-ld ...,itioul U.ica .. 1tn111..-ac •Lot Q • • t.pl-.ati.111 AllM7/hf*rt•at rl•cmiq luildiwi.1 ... Plannia1 &aildiq hildiaa .... lie Vorb.., •t..i119 •Luaiaa Cic, ...... r Office •' • ROIJIJllC !l.!Mllff Prot:r• Ge-al• 10. hc:oura .. Vncnveotioul ll0Hia1 Fi-.ci• tecltai.-c u. Vcd 'llitll a.,1.,.. ... lo lauttrq• .... mq or ........ '7 ••r...-Vorki.. i• Palo Alto. U. AHi•l leftio,.n i9 C...tnaciq l.a'l!I Mallueie, • ... llWle- JAc... .. 1'llqo IJ. eo.ci ... Mepta• C:.UO.i•U. C..an ... on1 .... ll•. C..ti-. 1.at a.a lrop• ~J. eo.ti•• l.ocal .. at .... i.i..t Pncr• Cf'iau'eck) :r.,1 .. "·"t•tw Go&l• 1'8l .. ltl4 1aplnenti111 Ateac1/0.part..at Onacillf. Maipt•i~ fton•iag Fuc4 Jecomttl l'laaai .. l'18Rlti .. 19&l-&\! $200,000 JHclJ -CoaC Lu<lbaakiaa 1981-14: $1SO,OOO J•arlJ -ipecial R11. la-Li.I 1911-84! fl00,000 1••rl1 -Miti1•t•• leaati.,. D1claratioa1 l911t $347,000 C•pital ltlfr«Re .. 11¢ ~. l9ilt Adopt Kev Ordift.aOc• lt&z1 furcb••• Tera.a School lite 1912: Purcbaae lircb-CrMlt lite 19'4: 10-tt r ... ilJ • S.Qi~r aentol Uaita for Loll and tlodetl!te b,c_ RD111 at TerMG CitJ 11a11A11r Dfficw riu.ioa 1 r.i.. IH!u•iaa c;,,rp. Pl•-iea • r.a. 1'oallli11& c ... .,. 1984: :10-40 F-iiJ 911Jtj/or s .. ior l.fft•l UGita Pbuias ' '""· for low and "°41er•t• loco.. BR"•'•l lircb-cr .. c lecti,,. 23 h!Jr- 1§81: 17 tech-n luHid .. Veit• Coat~ 1'12-84: Coatia ... Oai.u .atil er.er .. Tearaiaa&d lectiosa I lsi•ti!'.f hoar• Hil:U: l6 ._ lectaoa S SU.d .. 1Jait• 11. AHht Dswlopen 'lllMt vat co••• k•t• utl r.Aral llouiq Pnp-. Ollaoiq flaoi..91 17. Provide .oc lea• tllaa 10 per enc -U.it• ia 8owl0fllllllt el JO OS' llortl hit•. 18. • .. len fNai\.ilitiN ................. ~ .. lit ,n.iAlo •re U.. It .... -u -adu. : ' !lt!lov Manet late ho1r,. ltl2•8J t 11 ... Vllit• 1983-Ma a -Uait• • ·•-W& .. • • ·r -----------------... llOVSlllG BLIMllll' hoar-GMl• H. U• Tu~ •rtp .......... loll4• _. OtMr la-.nti.,. li'NIN:i.q lletliloU 10. eo.tl ... ...,.rt fft Pdo Alt• lloui.aa Co.tr,.Kst1- ll. '-nort IHt~l ._.iDI k"lui•iti• J'ntr• 21. Ink kUH ltate ao4 hdetal bforcemnl of Jail' .... Uaa a.- u. 14. .-u. Coati-lfforu to Prneat or ....,..Y holllem ht ... • o..in _, Teuau Tll•r Roat.al BVtali .. KMiatW. Tuk l'INcie C:..ti-. effort• of •-• .. latieM eo-i. .. 1.-te °"""'8t ltiurWiNtU. i• 1lweiGI 11. Mtpt a.tal ........ q. abftw.tia ONO... i • -• lapl~111ental1~0 Go.ii l"ll -J9t:. 1ap1 .... ,,.,, AJnc7/n.,.rc-t ltll: Cofttinua Fe••ibility ArwllJ•i• ti.. .. U. 1912: l••U1 Marta•&• lcvanUll loacb for 11n;.le-r .. ily IHI. lbit1 1913t l••ue Kii for Multi-F .. ilJ Rou1ia1 Oa1oint1 (Almud CDllC l'unu Alloute•) fl ... iq lutal llDHi•& Ac:9ui11iti-PrGar-rlaui .. 6 f.A. .... illl c:oq,. 1911-.14: hSO.ooo 7 .. ri, cr,ta Allocati- 1981: Ii U.it1 Purcba ....... lebaililiteted 1912-:14: 1' U..itl Purcbaaed aD4 bbabilitat•• OA1oi31 Onaoi• <H•sl cmMl hHi .. to lli•pe•iu.ta Citi••••' toi> lair ~iaa. teoU.w A4vlt• :.ttal AHi•teNc• T .... t ..... lttd lafon9ti ... u• lefanal ler•ieH) O.Ui•c ONU...C. ......... ttlo9nt fll t.auit .... riiac ~ OrU...-. .. Plaa•i• locid tonicH locial .. nicH 8ociol .. "ic .. Cit)' .Uwne,'o Olfi.ctl ' ·- .· .. EXHIBIT 3 Program 17 Aaendaent Insert Paragraph 8 to Define Eligibility Eligible buyers are those who can afford a BMR unit at currently available financing rates. C'..enerally, the goal of the program is to serve families with incomes 80-120 per cent of the County median income levels as published periodically by the Federal Department of Housing & Urban Development. Under certain circumstances, when interest rates are high and financing tight, the buyer's income required by the mortgage lender for purchase of a unit my slightly exceed the 120 per cent income level. Buyers of BMR resale unite may, if necessary, also include those with higher than the 120 per cent level as a result of the inflation adjustment factor pushing up BMR resale prices faster than the County median income rises. ENVIRONMENTAL. OOCUM(N·--CITY OF PALO AL 10 r I A ... ENVIRONMENTAL ASSESS~E~J ... Projrct Descri~tion/THle Amen~~en~~--~o.Ho~dng_~~~ent -.19~P. ~ompre~ensive Plan c .., u - .,. ... .... ( ' -~ .u c Q,/ ... cu ---··-------------·-------------·· ----- Location/Address ___ c_1_t_y_-_wi_d_e ___________________ _ Sponsoring Agency/Applicant __ ~C_i_t~y __ of~P_a_l_o~Al_t_o~----~ Address and Telephone of .".;:!'1 icant_-250 Han:ilton Avenue Application for COlll"~IP~cnsive Plan Change (e.g. 0 zoning change, subdivision of property, arch1tecturaT·n.·,;1ew-:-·u-;.,e· pf.•rn111 ·1 Zoning at Project Location...,_ __ n_l_a ___ _ F R · n/a · ee ece 1 pt No . -~ ______ .. . . . _ . The project is anOemergency project,Oministe,.ial project. under CFt)A quidt>- lines and procedures adopted by the City of Palo Alto. and therefore is Pxempt from environmental assessment. The project qualif;es for a Categor;ca1 Exemption (Class_~) under C[QA guidelines and procedures adopted by the City of Palo Alto~ and no further environmental assessiaent is necessary. City Offida1 ______________ Oepartmef'ft ___ ~--O"tP ___ .. NOTICE OF DETERMINATION R<l~ed upon the infonnation en the environmental workshPPts ~ the umiPr" i •w··d mt-rilr.r of the Planning Department has made an initial ~tud.Y of th" prn_i;·1 t .woi hol\c concluded: [ii N~!.J.d_t_iy~-~c_!_a_r_a_t:..i_'-?.i:t.: The project ha.s no si9nificant Pnvirorn11i>ul.li 11111•.11 t. No Environmental Impact Report is required. The reasons for a ~k9.1t 1vt' Dec 1 ara ti on a re: -~-~posed amendments ....tQ....thc HcwB1n& ...£1.eJUqt; _ 6"t.e . S .infgt:na.t;l.onal onl7. NA impact mi the physical eny1rnnment will occur __ .. u ------···~ ...... -·---~ E:) The project may have a significant environmental impact. An Enviromrienta1 Impact Report wi 11 be prepared. Plann;n9 Departlllent~~l £_~ --·-· P1annin9 Director#"' ;~ Date~J!;../!f/.._. 0 The project has been approved Date -----·. -· . 0 The project has been denied Date Revised 8-1-79 File No. 81-EtA-60 -------· Cttp of J'alo )ltt., P 0. IOX l02SO PALO AUO, CAUfOlNI~ 1'd(IJ August 2l. 1981 4 TO: Palo Alto Planning Commission FROM: Glenn Miller SUBJECT: Houai~ Element Amendments to Conform w1th State i<eview Members of the Commission: Background State law (Chapter 1143 of Government Code) requires localities to adopt housing elements which conform to State Guidelines. On February 2, 1981, the City Council approved the housing element as part of the 1980-1995 Palo Alto Comprehensive Plan. On February 13 the housing ele111ent was submitted to the State Department of Rousing and Comaunity Development (HCD) for official review and comment. The Department's official review was sent to the City on June 30, 1981. The City must make several amendments to the housing element prior to October 1, 1981, to appropriately respond to the State's review. Attached are the Staff cecot111ended amendments. State Review The State review commended the City for its efforts on providing low and moderate income housing. The review asked the City to make two primary additions to the housing element in order to secure their approval. These additions have been written as information supplements tc the existing housing alement. First, the City needed to identify adequate sites within the City w~irll could accomodate a range of housing (type, size, and price) responsive to a variety of economic segments. The attached section ''Residential Development Potential for Vacant Parcels" responds to this request. The second necessary addition was a section providing more data regarding housing need identification and documentation, including more information on how the City will neet these needs. The State suggested a table to illustrate this. The attached section ''Housing Need, Objectives, and Program Goals", includes this information with the requested table. Time Table for Amendments In order to 11l'!et the Octobe~ 1, 1981 deadline, City Council is scheduled to review the amendments at their September 14, 1981, meeting. The Planning Comniasion ahould, therefore, complete 1ta rev1ew at their August 26 meeting. Program 17 Addition Included in the Staff ~ecoa11ended amendments (attached) is a new paragraph to the Progr-17 description (page 16, Comprehensive Plan). This amendamt cl•rifiea buyer eligibility for the Below Market Rate program. ............... --------------~- ·~;.1( ~ _c_A~·~NIA_ ...=.·.--.. _ -----------.-=-==•=-:=-=·=o==::=-======f:=DM=UNO=:;.;;G=~=·:'~-J-1\. _c,,,,.,, .. ., uei~..'.RTMENT Of HOUSING AND COMMUNITY DEVELOPMENT DIV ISI01'! GF R£$f:AP.Oi AND POLICY DEVELOPMENT 921 lCtil S. trc~t e .. , . Sacrainent?. CA 95814 ,, i ... "' · •• r • . • • t ~fE~IEnr~rui .... ·-t---i- I •-. June 30~ 1981 Mr. William Zaner City Manager City of ?alo A1to Palo Alto. CA 94301 Dear Mr. Zaner: ., •t .. ,_ .• ~ ! ?81 JUL 6 'i981 lJl) OfRCE CF. THE crrv MANAGER RE: Review of the City of Palo Alto's Adopt~d Housing Element The Oepart:nent of Housing and Cor.rnunity Development nas reviewed the City of Palo Aito•s Housing Element aoopteo February 2. lgal. unde-r Se~tion =,~·~5;; of tne State Hea1th and Safety Code, our Oepartrneot is authorized tG revie"" local housing elements Hf or conformity with requirements of Sect ion 65302{ c) of the Government Code and Guidelines adopted oursudnt thereto." Th~ puroose of our review is to advise the City of any additional steps ~~i~n might need to be taken to oroduce a housing ele!llent which is in confor~ity with the 1977 Guidelines. As set forth in tne Housing Element G~idelinest the two most imoortant coq>onents of a housfng element are: 1) the identification and documentation of housinq needs; and 2) the develo?1Qant of a housing orogram to address these identified needs. In order to confor"m to Section 65302(c) of the :iovernmant Code, the hoi1sino. element is to contain •standards and p1ans for the i!ll)rove~nt of nousinn and for the provision of adeqyate sites for hous1ng" and is to make ~adequate provision for hous;ng needs of all economic segments of the coom.an it y. • The Guidelines define adequate proviston t? be a "9ood faith9 diligent effort" to ~w;oan<1 housing oooort1Jnit~l'.'s. They t•Jrther provide tnat such effort is to e'il{)hasize use of a wide ran-1e of locdl oublic oower-; which 1~ar.t u!)On nousing includi'lg a .:omr.it1nent to purs1Je. and coo!)erate in ' . I .. ~. Willia<n Zaner June 30, 1981 Page t~o available Federal and State programs. Based on our review, we find thP P~lo Alto Housing Element requires some changes to COlll>ly with State Housinq Element Law and the 1977 Housing Element Guidelines. When these cnanaes ar@ made, we will be pleased to make the finding the the City's housing ele~ent conforms to state housinq element law and the 1977 Housing Element Guidelines. I. HOUSING NEEDS IOENTlFICATION ANO IX>CUMENTAT!ON The City's rehabilitation needs and market and government constraints have been adequat~ly defined. However, data regarding affordability and new construction orojections (which may be available from the City's HAP and other City documents) should be included in the housing element. 1. Affordabilitl Palo Alto 1s housing element refers to the HAP as containing e~timates of housing need. The number of lower income households paying .r.ore than 25S of t~eir income for housing mvst be included dS part of the housing element to identify affordability needs. 2. New Construction Although the housing element includes an estimate of residential buildout in 1990, the Guidelines call for a projection of new construction need for market rate housing over a five year oeriod. This information MJst be included. II. HOUSING PROGRA:..S -While an accurate assessment of housing need is essential, the heart of the housing element lies in those provisions relating to the development and implementation of a housing program. To achieve this, Section 6450 of the Guidelines calls for a orogram containing five explicit con111itments as follows: 1) the specific obJectives to be acco~l1Shed (quantified.when possible); 2) the actions which will be undertaken to 1~lement the program (for example, city council resolution, land acquisition, density bonus, etc.) 3) the sources of financing or funding (e.g., Federal or State progre111s, lo~al revenue bonds, private subsidy, etc.); 4) the local agenc;es with primary resp~nsibility for i!f1)1ementing programs; 5) the establishment of reasonable timeframes for acc~lishment of specific objectives, which include benchmarks to indicate proqress., Mr. William Zaner June JO, 1981 Page three The housing program ~:1ould describe wnat the toca11ty 1s do1nq. a.nd wi 11 rto over the time framP. of the housing element. Palo Alto's housing orooram indicates a~tions to be taken, fund1nq sources and respansible aqencies. However,, the :Jrogram description should be exp4nded to 1nclude the objectives to be accomplished and t1me framet for accomolishment of tnP. objectives. This 1nfo~~t1on can be ore1ented 1n matr1x form to demonstrate how the pro;. ~~swill meet tne identified aff~rdab11ity and rehabilitation needs over .the t1ma frame of the 1le111nt. In evaluating whether quant1f1e~ objectives represent a Mgood faith, diligent effort," we use, as a rule of thumb, the federal standard and the standard adopte1 by ABAG member agencies or address1ng on an annual basis 5% of the unmet fair share need for lower 1ncoine households needinq assistance and apply it to the categor1es of reh1b111tat1on and affordability. The housing element should include quant1f 1ed objectives which address both identified affordabi lit.Y and rehab111t1on needs conmensurate with the AHOP level of effort. We note that during the Coima.inity Development Block Grant program year 1980-81~ Palo Alto used approximately 731 of its allocation for housing related activities. We want to commend the City for this 1eve1 of effort and hope it will continue 1n the future. 1. Adequate Sites Section 6456 uf th~ ouldelinas requit6es that each loca11ty mu~t include in its housing eleinent, standards and plans for pr9v1s1o~ of adequate sites for site-built and factory-built nousing and !IObflehomes. Sites are aleouate only to the extent they provide suitable locations which ean collectively acconwnodate a range of housing (t,YPe, size and price) responsive to the needs of all economic segments of the conllllnity. More specifically, this analysis should include standards to be used 1n evaluat1ng t~e suitability of individual sites for.non-market housing. In addition, this analvsis should clealy indicate the collective capacity of sites to accon'iJIOdate an appropriate range of housing and shall include assurance~ that both local and land use controls and the local tnfrastructuro of services and facilities are CO"'flatible with the provision of a range of housing opportunity and choice suitable to the needs of 111 economic segments of the COlll1llnity. To meet the adequate sites requirement for assisted hous1nq, the housinQ element should reference the Corrnun1ty Develoornent Block Grant (COBG) application and housing assistance olan description (as updated) of standards and plans to be used in the evaluation of individual sites. The element includes an ident1ficatfon of axfstfnlj residential capacft.v and programs to increase capacity. However, th~ analysis should be expanded to assure tnat adequate sites are available that ~an callect1vely accomodate a range of housing and the five year new const~uct1on need. .. .. "fr. Wt111am Zaner June 30, 1981 Page four Tne Pal~ Alto Hous1n9 Element adequate sites analysis should include: l. The exoectld d1velop1ble densities for vacant oarcels to indicate whether the land ts zoned to acconrnodate a ranqe of housing (type, ~1ze and pr1ce) responsible to all economic segments of the comatn1ty. 2. An assessment of t.ne potential for develoi:Jinq housing on land currently planned or zoned for ~on-residential uset underutilized residential land, and publicly~owned surplus land. 3. Spec1f1c actions and progr5n5 to increase caoacity (e.g., rezoninQ, ut111zation of surplus land, etc.) The information described in it11111 1·3 1r1 especially 1~ortant in localit,es like Palo Alto where there is h1gh demand and deYe1ooab1e land is in short supply. 4. Description of the standards to be used 1n evaluaing the suitability of tnd1vtdual s1tts for non-market rate housing. (For assisted housing th•se standards should normally be consistent with federal 111d state standards and houstng program criteria.) 5. A description of the standards to be used 1n evaluating sites for eanuf actured housing. 6. An assessment of whether there art a suff1c1ent number of sites ~hat 'llltt federal and state cr1ter1a for assisted housing in sufficient quantity to ut111ze fully, government subsidies wnich are likely to be 1vatllb1e during the time fra-ne of the housing e1e:nent. 2. Pr91r111 Suinary Jnformat1on in the hous1nq element aofnts out that with the ex1st1nq .io!'!s and housing t'llbalance there are far 1110re new jobs than hous1ng. ~anv oeoole who work tn Palo Alto cannot afford to buy a horne •. Strategies designP.d tn provide adtquat1 sites and alleviate the jobs-housing imbala~ce in Palo Alto involve estab11sh1n9 procedures for the development of res1denttal units in air space over asstssmtnt d1str1ct parking lots and tne rezoni~g of conmerc11l and industrial sites for residential use. The C1ty 1s currently looking at four different res1dent1a1 plans over one oub11c parking site. Thess types of innovative methods to provide 1dd1t1ona1 housing are 1""'ort.nt for cOllllUn1t1es, 11kt Palo Alto wntch are near residential bu11dout. The C1ty ts also using a colllb1nat1on of in-lieu fees from the below market rate pr09r111, Block Gr~nt funds, and ot"er sources to operate a 1andbank1ng progr .. to acquire sites to devel~a low and moderate inco~e hous1nq. .. --------------------------------------- Mr. William Zaner June 30, 1981 Page five The City of Palo Alto uses a diversity of housinq progr&~ to meet the needs of a11 economic segments of the cOJ1111Jnity as called for in Section 6460 of the Guidelines. For exa.'Tljlle, the City has creat:~d a fund for tile Palo Alto Housing Corporation, (PAHC) an independent non-profit housing corporation which is responsibla for construct~ng subsidized housing in the City. This corporation also recently begun a rental hous1nq acquisition proQram. A below market rate (BMR) program. also operated by PAHC, was established in 1974 to provide housinq for moderate income households with incomes between 80 and 120S of the County median. Both these programs are excellent exan_,les of how focal i ties cai us,? local public powers to make adequate provision for all economic segments. (Guidelines. Section 6460}. A condominium conversion ordinance~ 1n effect since 1974, prohibits the conversion of rental unit to condominiums until the rental vacancy rate exceeds 3% or where 2/3 of the tenants indicate their consent and displacement is ~inimized. Few conversions have occured. To preserve affordability (Guidelines, Section 6456), the City is using the conversion process as a mc~~s of obtaining additional units for the Below Mar~et Rate Program. Iri ad«:titinn to the prt!v1ous1y described proqrams, Palo Alto has tne following other housing activities in the planning stage: -A family-handicapped project containing 40 subsidized units will be developed by the Palo Alto Housing Corporation on the Birch/Grant site. This project may require an Article 34 refer idum. -Approximately 46 acres of Stanford University's land will be developed for ho·us1ng, some of which w11i be assisted. The c;ty has been wrking wUh )tanford University and tha Palo Alto Housing Corporation on this project which will provide up to 1,600 additonal housing units to address emplo.vee housing needs and the special housing needs of students. • The City will u:e its landbanking funds to acquire the surplus Terman school site to develop assisted housing. Ill. Sunrnary In sunnary, we conmend the City for tts efforts to provide low and moderate income housing throu~h the use of federal and state funds and a wide ranoe of local powers. If this additional information is provided and the suggested revisions made, we would be oleased to make tha f 1nd1ng th~t the housing ele1nent is adequate when assessed by the standards 'lf Govern.,...nt Code Section 65JO(c) and the 1977 Housing Element Gu1de11nes. ; flfr. Willi n Zaner June 30, 1981 Page six We want to advise local1t1es which intend to co(ll)ly with the prov;s1ons 1n Article 10.6 of Chapter 4 of the GovP.mment Code (AB 2S53) by adoptinq a housing element that confonns to the 1977 Housing Element Guidelines that the required revisions noted in this review and subsequent adootion of the document should be acc~11plished by October 1, 1981. Tne new statute reqt1ires that after this date, housing elements are to be prepared in accordance with the standards in the statute as opposed to the bl1idelines. Thus9 jurisdictions which have not adopted elements in accordance with thP. Guidelines prior to October 1 may have to ~-nend tneir elements in order to conform to the new statute. for your information, we are enclosing an Apoendix on recent legislation. If you have any further questions please call Sheila Brutoco of our staff at (415) 348-8140 or Steve Peterson at (916) 323-6170. Sincerely, , ........ -;:;ttua /4..e«(!/;'(dl t.... David Wi 11 iams.on Supervisor, Review Section cc: K~nnetn Schreiber, Oirector of Planning A. F. Tranter, Executive Director ABAG Frank M. Garcia, Exe~utive Director* Santa Clara County Comnunity Leqal Service *CLS has a stand1n~ request on file with HCO to receive a copy of all office c~rrespondence relating to housing ele.nent reviews for jurisdictions in Santa Clara County. We are forwarding a copy of this letter to them in accordance with the Public Infonnation Act. Appendix . •. .. f .. • t APPEN1HX RECENT LEGISLAiION we .auta l1ke to take this opportunity to inform you of several new laws related to housing elements. Government Code Sections 65302(c) and 65580 et seq. (AtJ 2853) establisn some new requirements for the housing eleillent of t~e general plan. The new law established, in part, that housing elements " adopted prior to October li. 1981 and in conformity with the Guidelines, are deemed to be in compliance w;th the new law. Under the new law, localities naJst update their elements at least every five years, except that the first revision lllJSt be co~leted by July l, 1984. A letter wnich explains the provisions of the new law has been sent under separate cover from our Department to all cit;es a"d counties. Another law which took effect January l, 1931 (AB 2320) requires tnat localities zone sufficient vacant 1and for residential use in relation to zoning for nonresidential use at standards and densities appropriate to meet housing needs identified in the general plan (Chapter 4.2 of the Government Code). rn effect, this means that a locality l'lk.ISt zone to allow for the development of housing affordable to all econOJuic segments of the COIT!ll~nity consistent with its needs as identified in the housing element. Although not a specific requirement of housing element law, this requirement is a strong reiteration of the housing element requirements that the locality identify adequate sites which will bP made available through appropriate zoning and development standards for a variety of types ot housing for all income levels in order to meet the comnaJnity•s housinq qoals. Under Chapter 4.2, the locality's authority to regulate'subdivi~ions is also limited Insofar as the locality 111Jst refrain from imposing criteria for t~e purpose cf rendering infeasible the develooment of housing for ali economic seqrnents of the cOR111Unity. This provision parallels and underscores housing ~lement requirements that the administration of land use and development controls oe directed towards achieving housing goals. · Government Code section 65852.3 and Health and Safety Code Section 18300 (SI$ 1960 which becomes operative on July 19 1981)9 provide for the plac~-nent of mobilehomes in single-family resident;a1 zones. The law declares that a city (ir.cludiag a charter city) or county shall not prohibit the installation of mobilehomes on a permanent foundation on lots zoned for single family dwell~gs. However~ a locality may CO!i1J1Y with this requirement designating certain lots zoned for single family dwellings for inobilehome use, which lots are determined to be c0111>atiole for mobilenome use. r4obilehomes will be subject to no mora restrictive developr11ent standards than apply to conventional s1ngle-fam;ly dwellings; however, these standards cannot have the effect of totally precluding mobilehomes. (Govermnent Code Section 65823.J) Housin~ Element Law requires that in ~rder·to meet identified housing needs, the housing element inust identify adequate sites which w111 be made available through appropriate zoning and development standards for tne development of housing for all income levels, including factory-built nous1ng and mobilehomes, Thust to the extent that there is a need for low and moderate income housing whicn is not being ~t tnrough other housing programs and Which could be met throuqh the provision of 'llObilehome~, th~ locality fllJSt zone an amount of single family residential land for mobileh1nes comnensurate witn such need. . ..