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Home My WebLink About4.09 Tri-Valley Affordable Housing CITY OF DUBLIN AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 24, 1992 SUBJECT: Report on status of legislation with regard to Tri-Valley affordable housing REPORT PREPARED BY: 2r, Dennis Carrington, Senior Planner EXHIBITS ATTACHED: A) Draft legislation B) Letter dated January 10, 1992 to Timothy Coyle C) Hypothetical example of a Tri-Valley Affordable Housing Project RECOMMENDATION: I F 1 ) Receive the Staff Report FINANCIAL STATEMENT: None at this time DESCRIPTION: On November 12 , 1991, the City Council authorized the Mayor to sign a draft letter to Timothy Coyle, Director of the State Department of Housing and Community Development regarding opportunities for developing affordable housing at a subregional level (Exhibit B) . Although State HCD is interested in the proposed legislation, as a State Agency, it cannot sponsor legislation. City Council members and Staff from the Tri-Valley area contacted the League of California Cities for support in proposing the legislation. The League of California Cities has since been actively working to draft legislation (Exhibit A) and to secure an author for that legislation. On February 19 , 1992, Senator Boatwright agreed to author the legislation. The concept of developing affordable housing at a sub-regional level is not new. In the past attempts have been made to propose legislation which would reduce a city' s share of its regional housing need in proportion to the amount of housing that city provides in some other jurisdiction at a sub-regional level . Opposition has come from affordable housing proponents who view such legislation as a means for cities to avoid placing affordable housing within their own boundaries . At the February 13, 1992, Tri-Valley Affordable Housing Committee meeting, representatives from the City Councils and Staff of member cities and Ernie Silva of the League of California Cities discussed legislation (Exhibit A) which would allow a city (or county) credit for housing provided on a sub-regional level toward meeting its regional share of housing, as opposed to a reduction in that city' s (or county' s) regional share. A hypothetical example of such a project is shown in Exhibit C. This change could make the legislation more acceptable to groups which have opposed similar legislation in the past. Ernie Silva stated that this legislation may not be adopted this session because we are in the second year of a two year session. If it is not adopted this year it will be necessary to submit legislation next year for the new session. Legislation is often not approved on the first submittal . He advised that much hard work and patience will be required to achieve adoption of this legislation. ---------- � - ------------------------------------------------------ ITEM NO. COPIES TO: General/Agenda File [TVAHC22 ] Project Planner -- CITY CLERK - FILE jam' J FEB 2 U MZ DUBLIN pLANNINQ FEET 19 192 17!0 C-916/444-2671 P.2 REGIONAL HOUSING NEEDS PLANNING AREA ENABLINCx STATUTE Add Section 655$4(c)(7) to the Government Code which reads. The council of governments or the department shall facilitate the production of affordable housing by crediting a portion of housing developed on a cooperative basis toward the achievement of participating jurisdiction's affordable housing objectives. The credit allocated to each jurisdiction shall be a fair-share of the total housi�g developed as determined by each jurisdiction's contribution of resources to the total affordable housing developed, Sharing of credit for subregional affordable housing devel;0 men t 6 1 be permitted where'all of the following conditions are met: (A) Transfers occur within a defined housing market subreg on consisting of contiguously situated cities and or counties or adjacent cities, (B) One or more local governments in the subregion agree to increase its housing stock in an amount which equals the amount of housing to be credited to another participating jurisdiction, with no net increase or decrease in the iubregion's share of the regional housing need. (C) The city or county which obtains the credit contributes substantial financing, land, labor, infrastructure improvements, or other resources aid the credit is proportional to the value of the contribution, (D) The credits are consistent with the housing element of each participating local government. (E) Not more than 50 percent of the unmet housing need of the cradited jurisdiction is constructed in one or more other cities or counties. (F) The agreement establishing the sharing of resources and the division of credits is adopted by the legislative body of each member jurisdiction the firms of which are contained in a written document. The terms of the agreement shall identify: (1) the housing market subregion; (ii) each member jurisdiction; the number of units to be credited; (iv) the resources contributed by each member jurisdiction to accomplish the construction of housing, A i C January 10, 1992 RECEIVED Timothy Coyle, Director State Department of Housing and Community Developmen ' i P.O. Box 952051. Sacramento, CA 94252-2051 DUBLIN PLANNING RE: Opportunities for Developing Affordable Housing at a . :Sub-,Regional :Level in the Tri-Valley Area of Alameda and Contra Costa Counties Dear Mr. Coyle: Representatives from the seven local jurisdictions situated in the Amador, Livermore and San Ramon Valleys of the San Francisco Bay Area recently met and formed the Tri-Valley Affordable Housing Committee. Member jurisdictions include Alameda and Contra Costa Counties, the Town of Danville and the Cities of Dublin, Livermore, Pleasanton and San Ramon. The focus of the Committee is to explore the opportunities for jointly developing affordable housing in the Tri-Valley area. Thanks to helpful input from representatives of the various member jurisdictions, as well as from Mr. Gary Binger of ABAG and representatives from your Department, we are excited about the opportunities for moving forward. However, it is our understanding that a strict interpretation of Government Code Sections 65583 , 65584 (a and b) , and 65584-5 (a,b and c) does not permit cities and counties to mutually agree to pool their resources, and at the same time, receive credit toward their own "fair share" allocations . We are therefore asking that you consider this possibility and work. with us to find the appropriate legislative reform. In the past, Tri-Valley cities and counties have had good success in developing housing for lower-income seniors .and moderate-income households. However, providing homes for families that work in our communities but cannot afford to live_ in .them.. has- been much more problematic. There are numerous obstacles to overcome, including: the high cost of land and construction, finding available land, the impact of on- and off-site improvements on the purchase price, and the time it takes to review and approve a project containing affordable housing. The common denominator of all of these obstacles . is the high cost of development. As you are aware, communities are faced with the almost impossible task of providing housing for people of all economic levels at a time when federal and state funds are shrinking. Timothy Coyle January 10, 1992 Page Two In order to overcome these problems,- communities must seek creative solutions.! Joint. development .of affordable housing could be one such solution. Cities and counties working together to produce affordable housing .would have several advantages. First, greater . sources of funding could be applied. For example, one community could provide a site-; while others might provide funding from sources . such -as "in-lieu" affordable housing fees. Another . .. -advantage -would be. early identification of available sites .. In the early .:stages. of planning, affordable housing goals could be _- -. . .. . identified, ....and financial commitments could be made with nearby cities and counties. Another advantage would be the savings in terms of .the time- --and effort of processing developments with an affordable housing component. The concept of communities working together and combining their resources, and receiving "fair share" allocation credit in return, would not be intended to supersede or take- the place of other efforts by communities to meet their fair share allocations. It would simply augment other ongoing programs, and at the same time, provide another option intended to alleviate the shortage of affordable housing. We would like to thank Tom Cook, Cathy Creswell and Gary Collard of your Department for the assistance that they have provided to our Committee. `We look forward to hearing from you and continuing our dialogue with the State regarding this very important issue. AP dent Mary King Chairman Tom Powers Alameda Co my Contra Costa County Board of Supervisors Board Supervisors Mayor everly -Lane Mayor Peter Sny r Town of Danville City of Dub in Mayor Ca ie Brown Mayor Kenneth R. Mercer City -of Livermore City of Pleasanton ay ary Lou Oliver y of San Ramon Timothy Coyle January 10, 1992 Page Three cc: William Baker, State Assembly Samuel Farr, State Assembly Daniel Hauser, State Assembly Marian Bergeson, State Senate Daniel Boatwright, State Senate Leroy Greene, State Senate William Lockyer, State Senate Richard Sybert, State Office of Planning and Research Gary Binger, Association of Bay Area Governments Donald Benninghoven, League of California Cities HCDLETTR �- __.. Y ...... 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