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HomeMy WebLinkAboutMinutes - May 13, 2003 SSCITY OF LODI INFORMAL INFORMATIONAL MEETING "SHIRTSLEEVE" SESSION CARNEGIE FORUM, 305 WEST PINE STREET TUESDAY, MAY 13, 2003 An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday, May 13, 2003, commencing at 7:00 a.m. A. ROLL CALL Present: Council Members — Beckman, Hansen, Howard, Land, and Mayor Hitchcock Absent: Council Members — None Also Present: City Manager Flynn, City Attorney Hays, and City Clerk Blackston B. CITY COUNCIL CALENDAR UPDATE City Clerk Blackston reviewed the weekly calendar (filed). C. TOPIC(S) C-1 "Housing Element Update" Community Development Director Bartlam reported that the 2003-2008 Housing Element should be completed by December 2003. A presentation on this topic was given to the Planning Commission six weeks ago. In addition, meetings have taken place with the Board of Realtors and will be occurring with other interest groups, non-profit entities, and service clubs to raise understanding in the community regarding the City's housing situation. With the aid of overheads (filed) Jeff Goldman of Cotton Bridges Associates explained that the housing element is designed to be a comprehensive policy document spanning the entire range of housing for all segments of the community. The housing element, which was first required in the late 1960s, is one of seven mandated elements of the general plan. The housing element is prescriptive in nature, and at its broadest level, is the overarching policy strategy document addressing the City's current unmet and future housing needs for all residents. In answer to Council Member Land, Mr. Goldman stated that the regional allocation process set forth in state law does not allow the Council of Governments or the California Department of Housing and Community Development (HCD) to take city growth limitation policies into account. Factors that are considered include available land for residential development, land with redevelopment potential, employment growth in relation to population growth, and other demographic and market factors. Mr. Goldman described the four parts of housing elements as follows: 1. Housing needs assessment: Discusses population, demographics, housing units, housing conditions, employment, and other characteristics that have some relationship to current and future housing needs. 2. Analysis and evaluation of constraints to housing: Constraints that may arise out of local government regulation or actions, local housing market conditions, or environmental considerations that may impose constraints on the ability to accommodate housing. 3. Land inventory: State law requires that each city and county demonstrate that it has adequate sites to accommodate its assigned regional share. Adequate sites have to take into consideration the physical characteristics of land and capability to accommodate housing, zoning, and other regulations that would affect the type, density, cost of housing, availability of public services, and facilities to sites so that they can be developed during the planning period covered by the housing element. Continued May 13, 2003 4. Housing strategy: Must contain a set of qualified objectives and address the city's goals for new housing construction, housing rehabilitation, and preservation of existing affordable housing in the community. It must contain a five-year schedule of programs that show what the city intends to accomplish, who will be responsible, potential funding sources, and the time frame for implementation. Mr. Goldman stated that part of the process of adopting or updating a housing element is review by the HCD for substantial compliance with state law. It is mandatory that the housing element be submitted for review before the Council adopts the element. The Council may decide to either make changes to the document in consideration of state comments or adopt the document without making changes, but making findings of its own as to why it believes the housing element is in substantial compliance. HCD's opinion as to whether a housing element is in substantial compliance has several implications. Access to various state housing community economic development programs could be dependent on having the finding of compliance, either as an eligibility threshold or as a competitiveness factor. If HCD has found the housing element in compliance, it makes it easier to defend the document if there is a legal challenge. Mr. Goldman reported that low income is considered any household that earns 80% or less of the area median income. In 2003, based on federal income guidelines, the median income for a family of four is $50,600. Very low income is a household earning 50% or less of median income, which for a family of four is $25,300. In a normally distributed population, 40% will always be low income and 25% will be very low income. Affordability is defined as a housing expense that is no more than 30% of gross income. For a low-income household an affordable house to purchase currently in Lodi would be no more than $121,000. An affordable apartment to rent would be no more than $1,000. For a very low-income household an affordable house to purchase would be no more than $76,000 and a rental unit of no more than $630 a month. A median -priced home in Lodi as of March 2003 would require a wage of $36 an hour. To afford median rent for a one - bedroom unit an individual must earn $16 an hour and to rent a three bedroom home it would require over $32 an hour. The median hourly wage in San Joaquin County as of last year was $13.23. City Manager Flynn asked how a developer could build affordable housing in Lodi when the cost of a lot is $200,000. Mr. Goldman replied that it almost always requires a subsidy (e.g. grant, loan, tax credit) to build affordable housing. Frequently there also needs to be some kind of regulatory incentive provided by local agencies, which could include a combination of density bonuses or flexible development standards, deferred development impact or permit fees not due for 12 to 18 months or until after the units are occupied. Council Member Land noted that there are usually layers of financing on affordable housing development. The greatest challenge is in finding predevelopment dollars. Mr. Goldman responded that the redevelopment agency or the City working with a non- profit housing trust could be instrumental in this area. There are a few predevelopment loan and grant programs available through the state; however, they are limited in scope. The housing bond that was passed a couple of years ago would also provide some additional money for predevelopment. Lodi's regional housing needs are based on the San Joaquin Council of Governments regional housing allocation plan, which covers 2001 through 2008. In this plan each city and county has a number of housing units distributed by income level that are its goals. The city's responsibility under state law is to provide the regulatory climate and appropriately zoned and serviced land that can be developed during this time period to meet the numbers. Mr. Goldman stated that it was not Lodi's responsibility to guarantee the units would be built. One of the keys to meeting the numbers is ensuring there is land at a range of densities, particularly some higher -density land that can accommodate the over 1,600 very low- and low-income units that are the City's assigned share over the seven and a half year period. 2 Continued May 13, 2003 Council Member Hansen noted that Council received a letter (filed) from a citizen concerned about annexing land, due to the vineyards and prime agricultural land that surrounds Lodi. Mr. Bartlam reported that in the last couple of years 300 units, all moderate or above, have been built in Lodi. He explained that the reason to deal with the housing policy is because it is good planning, it builds a stronger community, and because there are a wide variety of people that make up Lodi, not just the segment that is above moderate income. He emphasized that the goals are not production requirements. Lodi's housing element will address its general plan boundary, not the current City jurisdiction. He stated that in order to come close to meeting the numbers it will require annexing land, as there is relatively no vacant land available. Mayor Pro Tempore Howard noted that in the downtown area there is the capability of having housing upstairs from the retail. She suggested that Council carefully consider having a balance of homes in the west side master plan and look at the area as a whole, instead of piece by piece. In reply to Council Member Land, Mr. Goldman stated that Lodi needs to show the ability to accommodate the total number of 4,014 units and the ability to accommodate those individual numbers by income level. It is important to show that there are enough sites zoned for higher densities that can meet the 1,654 low- and very low-income units. In response to Mayor Hitchcock, Mr. Goldman reported that there are no penalties in the law for not meeting the housing goals. State law requires that cities and counties make a good faith effort. In reference to urban growth boundaries, Mr. Goldman explained that if a community is aggressively seeking job growth, there would be an expectation that if the community can accommodate jobs it can also accommodate housing. If a community is not creating jobs it might get a lower allocation because the expectation would be that it is not creating as much of an intrinsic need for additional housing because there is not as much job growth in the community. Mr. Goldman reported that of the population changes that have occurred over the last decade, the largest increase in the Citys population have occurred in the under age 18 and 45 to 54 age groups. There was a decline in the 25 to 34 age. The Hispanic or Latino population increased 76%. There was a small increase in average household and family size. The number of single -parent households increased 20%. The fastest growing segments of the population have lower incomes than the average or median Lodi income. Home ownership was 54% compared to 60% countywide and 57% statewide. In 2000, 20% of renters lived in overcrowded conditions, which was up from 15% in 1990. Overpayment increased by 53% among renters and 60% among homeowners. Mr. Bartlam pointed out that when people are overpaying for housing, income that would otherwise be discretionary, is not going back into the community. He reported that 50% of Lodi's workforce commutes to other cities. He stated that historically people in Lodi have had a perception that the City is on the upper end of the income limits in the county; however, that is no longer the case. The south county has raised its median income beyond Lodi's, which is due in most part from residents in Manteca and Tracy commuting to much higher paying jobs. He believed that this trend would continue in the future. In answer to questions posed by Council Member Hansen, Mr. Goldman reported that a healthy housing market would have an overall vacancy rate of 5% for renters and 2% to 3% for ownership housing. Mr. Bartlam stated that Lodi's fee structure is not conforming to multi -family projects. In addition, there is a perceived risk in the local community of doing multi -family housing projects. He noted that in one subdivision which opened last year a majority of the houses were bought by investors and rented. In the decade of the 1990s, the City's percentage of renter versus owner -occupied housing changed little, with no renter units being constructed. Continued May 13, 2003 In reply to Mayor Hitchcock, Mr. Bartlam stated that the strategy planned is to recommend that Council eliminate the planned residential general plan designation and replace it with low-, medium-, and high-density residential. PUBLIC COMMENTS: Christina Cross suggested that a community education process begin now so that NIMBY (not in my backyard) problems do not arise just before changes are made. She spoke in favor of the recommendations presented by Community Development for the housing element, stating that it would result in greater understanding and a stronger community. In communications with people in agriculture, she has been told that their workers are coming from farther away. This increases traffic, pollution, creates a strain on families, and their wages are not returned back into the community. She read the following letter from Robin Knowlton: I support Lodi's efforts to grow through infill rather than take agricultural land out of production. i live in the downtown area on a block that has mixed housing. On this block there are nine single-family homes, three apartment buildings, as well as three apartment units behind one of the homes. Of the nine homes, five are rentals. Having lived with a variety of housing options in close proximity i would like to suggest. Spread low-income and high-density housing throughout Lodi, do not concentrate it solely downtown and on the east side. D Require all new housing developments to have a mixed housing element, e.g. apartments, townhouses, low income, etc. Do not allow this requirement to be mitigated through other deals. • Partner with a non-profit housing organization to offer trainings to rental agencies in areas such as identifying good tenants, obligations to the neighborhood in dealing with tenant troubles, or keeping the building up to neighborhood standards. • Create a neighborhood liaison/mediator to work with tenants, residents, the police, landlords, and rental agencies when neighborhood issues do not seem to get resolved, e.g. tenant having repeated parties and disrupting neighborhood, drug dealing, landlord or rental agency that is indifferent to neighborhood complaints. ➢ Require two off-street parking spaces/multi-family unit. Currently most apartments have inadequate parking and the street becomes one massive parking lot. David Hill introduced himself as the Pastor of Grace Presbyterian Church and the President of the Breakthrough Project. He encouraged Council to move forward on this issue and stated that affordable housing would attract different people and make Lodi a more inclusive community. D. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS None. E. ADJOURNMENT No action was taken by the City Council. The meeting was adjourned at 8:19 a.m. ATTEST: Susan J. Blackston City Clerk 4 Mayor's & CouncU Member's Weekly 1~alendar WEEK OF MAY 13, 2003 Tuesday, May 13, 2003 7:00 a.m. Shirtsleeve Session. 1. Housing Element Update (CM) Wednesday, May 14, 2003 10:00 a.m. Lodi Chamber of Commerce Job Fair, Hutchins Street Square, Kirst Hall. Reminder Hitchcock, Howard, Hansen, and land. League of California Cities Legislative Action Days, Sacramento. May 14 - 15, 2003. Thursday, May 15, 2003 Friday, May 16, 2003 10:00 a.m. Land. LAFCO final public hearing on the fiscal year 2003-04 LAFCO budget, Chambers of the Board of Supervisors on the 7th floor of the County Courthouse, 222 East Weber Avenue, Stockton. 12:00 -1:30 p.m. Howard. The San Joaquin County Bar Association 2003 Law Day Luncheon,- Stockton Civic Auditorium, 525 North Center Street, Stockton. No host social 11:30 -noon. Saturday, May 17, 2003 6:00 p.m. Council for the Spanish Speaking Annual Gala Dinner, River Mill, 1672 West Bowman Road, French Camp. Sunday, May 18, 2003 12:00 - 3:00 p.m. Celebration on Central Event. Monday, May 19, 2003 Disclaimer: This calendar contains only information that was Provided to the O Clerk's office N:\Administration\CLERK\FORMS\ M caindr.doc •What is a HousingElement?....... State Requ%semens and Review Housing Element Contents .......... .......... ..... A&',- ►A o%,Pwao. ' "�.rusr-lwnr►rrr�7 . What is'a Houcing Element? 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May 5, 2003 RECEIVED 2993 MAY 12 PM 2: 50 Dear Mayor Hitchcock and Council Members, CITY CCE; • p, CITY OF CODI Thank you for considering the following as input to the development of Lodi's General Plan. We would like to support Lodi's desire to provide housing opportunities within its existing boundaries to the degree this can be accomplished, and encourage a mix of higher density development throughout the multiple areas of the city, especially near services and transit opportunities. We fully appreciate the demands being placed upon all of the valley towns and cities to provide shelter to their current and future inhabitants, but equally recognize that a continual extension of boundaries will obliterate agricultural land and further impact the air quality in this region. Thank you for considering our thoughts. While we presently reside in Woodbridge, we feel every citizen of this region is involved in this future. We all breathe the same air. Laddie and Brian Erbele To: City Council Members RE: Lodi 2003-2008 Housing Element From: Robin Knowlton/ 410 W. Oak St., Lodi I support Lodi's efforts to grow through infill rather than take agricultural land out of production. I live in the downtown area on a block that has "mixed" housing. On this block there are 9 single-family homes, 3 apartment buildings, as well as three apartment units behind one of the homes. Of the nine homes, five are rentals. Having lived with a variety of housing options in close proximity I would like to suggest: 1. Spread low-income and high density housing throughout Lodi, do not concentrate it solely downtown and on the East side. 2. Require all new housing developments to have a "mixed" housing element: apartments, townhouses, low-income... Do not allow this requirement to be mitigated through other "deals." 3. Partner with a non-profit housing organization to offer trainings to rental agencies in areas such as: identifying good tenants, obligations to the neighborhood in dealing with tenant troubles, or keeping the building up to neighborhood standards. 4. Create a neighborhood liaison/mediator to work with tenants, residents, the police, landlords and rental agencies when neighborhood issues don't seem to get resolved: tenant having repeated parties and disrupting neighborhood, drug dealing, landlord or rental agency that is indifferent to neighborhood complaints. 5. Require two off-street parking spaces/multi-family unit. Currently most apartments have inadequate parking and the street becomes one massive parking lot.