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HomeMy WebLinkAbout07-26-2007 SSMINUTES JOINT CITY COUNCIL/REDEVELOPMENT AGENCY SPECIAL STUDY SESSION CITY OF LAKE ELSINORE 183 NORTH MAIN STREET LAKE ELSINORE, CALIFORNIA THURSDAY, JULY 26, 2007 X%RYtfF*****rt*YtWYO~trt~kft*****k:k*:FYtit*****~F**:kX kYtYtYtie******rtYtYtYtYe*******XrtYertfF****l~XfF:k****~kfk*YtYek****Yt*YefY****** CALL TO ORDER Mayor Magee called the Joint Special Study Session to order at 5:00 p.m. ROLL CALL PRESENT: MAYOR MAGEE MAYOR PRO TEM HICKMAN COUNCILMEMBER KELLEY COUNCILMEMBER SCHIFFNER ABSENT: COUNCILMEMBER BUCKLEY (arrived at 5:07 p.m.) Also present were: City Manager Brady, City Attorney Leibold, Administrative Services Director Pressey, Lake & Aquatic Resources Director Kilroy, Parks & Recreation Director Gonzales, Public Works Director Seumalo, Community Develapment Director Preisendanz and Office Specialist Porche. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was lead by Mayor Magee. DISCUSSION ITEMS City Attorney Leibold gave a presentation regarding affordable housing. She commented on how affordable housing related to low, very low and moderate income households. She indicated that affordable housing costs were calculated based on a specified formula. Mayor Pro Tem Hickman inquired if there was a way to calculate the number of affordable rental units in the City. City Attorney Leibold indicated a unit only counted as an affordable unit if there was a recorded restriction ensuring the ongoing affordability and mandating that an income- eligible househoid occupies the unit at an affordable rent. City Attorney Leibold noted that before 1995, the Redevelopment Agency made annual findings that there was no need for affordable housing in the community because the City was a community of affordable housing. Mayor Pro Tem Hickman inquired if Section 8 applied to affordable housing. City Attorney Leibold noted that Section 8 was affordable housing and could be coupled with a RDA housing project. She noted a Section 8 unit by itself does not apply. City Attorney Leibold indicated the RDA was mandated to provide 20% of all their increments into a housing fund to make affordable housing possible. Councilmember Schiffner commented on how most of the home developers in the City had chosen to pay the fee rather than to provide affordable housing units. City Attorney Leibold commented on the affordability gap. She noted the gap was the difference between the market rent/sales price and the affordable renUsales price. Councilmember Buckley commented that the difference between the existing and future rental units was that most of the new rental units were being built by large developers. City Attorney Leibold gave an explanation of affordability covenants. She indicated the Redevelopment Law required that every newly constructed and substantially rehabilitated unit, assisted by the Agency, required a covenant. She noted that the covenant was 55 years for a rental and 45 years for owner occupied. City Attorney Leibold indicated that the Redevelopment Agency had an obligation to set aside 20% of their increment into a special account that could be used exclusively for affordable housing purposes. She noted that the units had to be available to or occupied by very low, low or moderate income households at an affordable rent or an affordable housing cost. City Attorney Leibold exclaimed that the Housing Fund monies needed to be spent in proportion to the housing need. She noted the definition of "housing need". She pointed out that the Agency's Low and Moderate Income Funds needed to be expended in proportion to the percentage need of the three income categories. City Attorney Leibold noted that the Redevelopment Law stated that the Agency could only spend the Housing Fund monies on senior housing in proportion to the City's senior population. City Attorney Leibold gave some background on inclusionary housing. She noted for every 100 homes built within a Redevelopment Project Area, 15 must be low and moderate income. She indicated that of those 15 homes, six of them have to be very low income. City Attorney Leibold stated the existing deficit for inclusionary housing was 355 units Councilmember Kelley requested further clarification on replacement housing. City Attorney Leibold indicated there were a variety of ways to meet the requirements. She stated that, to date, Lake Elsinore did not have a single outstanding replacement housing obligation. She noted that those obligations were triggered when the Agency is involved with a project that results in the removal or destruction of a unit that was occupied by low or moderate income households or persons. City Attorney Leibold noted that the State Legislature imposed additional mandates, on a yearly basis, on local government with respect to the provision of affordable housing. She further noted that they had taken away the City's discretion with respect to evaluating, approving, denying and conditioning affordable housing projects. City Attorney Leibold commented on the Regional Housing Needs Assessment (RHNA). She noted the numbers looked to the existing and future need. She indicated the RHNA number was incorporated into the City's housing element. City Attorney Leibold pointed out the RHNA were goals. She indicated it was an effort by the Association of Governments to distribute the affordable housing throughout a region. She noted the RHNA was not a mandate. Councilmember Buckley spoke on issues involved with trading. He noted SCAG was looking at various trading mechanisms. Councilmember Schiffner suggested a plan be established to obtain the goal of providing affordable housing. City Attorney Leibold commented on the No-Net-Loss in Density Law. She stated that the No-Net-Loss in Density Law was the State's mandate to make sure that the City and Agency did not ignore their social obligations to provide their fair share of affordable housing. City Attorney Leibold noted that Legal Counsel would be bringing a Density Bonus Ordinance to the Planning Commission in the next 45 to 60 days. She stated that the Density Bonus Ordinance obligated the City to grant up to a 30% density bonus. City Attorney Leibold commented on the City adopting an Inclusionary Housing Ordinance. She noted cities did not have an inclusionary mandate, but they did have land use authority that the Redevelopment Agency did not have. She noted that it was becoming a common practice for cities to adopt a city-wide Inclusionary Housing Ordinance to assist the Redevelopment Agency in achieving their inclusionary obligations as well as the City's mandate to reach their RHNA numbers and other affordable housing goals. She noted that the Ordinance would require that 15% of all residential units developed in the City be restricted to very low, low or moderate income. 3 She noted that the law also stated that the City has the regulatory authority, but it had to allow a developer an alternative equivalent action. Councilmember Schiffner inquired if Inclusionary Housing had to be available or occupied. City Attorney Leibold indicated that Inclusionary Housing must be occupied or available for occupancy. RDA Project Analyst McCarty commented on the Housing Action Plan. He noted that staff was working on an RFP to get a consultant to put together the housing element. He stated the housing element was required to be updated every five years. RDA Project Analyst McCarty noted the importance of identifying housing sites. He indicated that there was a limited amount of money to build the developments. He recommended the Agency pursue the most cost effective method of developing affordable housing. RDA Project Analyst McCarty commented on "smart growth strategies". He noted Councilmember Buckley's idea about mixed-income and mixed-use developments of higher densities. He stated that it would probably be the direction they would go in to make it more affordable. RDA Project Analyst McCarty indicated that staff had already identified areas that are available. Councilmember Buckley indicated that staff was looking into the areas of the four corners, downtown and the ball park. RDA Project Analyst McCarty stated approximately 50 acres would be needed for 800 to 930 units. RDA Project Analyst McCarty noted that high-density developments can offer several benefits. He commented on how increased densities help draw in more retail, commercial and jobs. Mayor Pro Tem Hickman inquired on the density for the proposed acres. RDA Project Analyst McCarty indicated that staff had assumed an average of 20 units per acre. He noted the units would be 3-stories tall. RDA Project Analyst McCarty suggested looking at ways to encourage developers to build their own 15% inclusionary requirements. 4 RDA Project Analyst McCarty noted stafF had proposed putting together an RFQ to seek qualified affordable housing developers with experience in fulfilling the inclusionary requirements for cities. RDA Project Analyst McCarty commented on another part of the process that would include financing options. He indicated funding could be done by way of grants or loans. RDA Project Analyst McCarty reviewed alternatives other than building new affordable housing. He commented on the purchase of affordability covenants and substantial rehab i litation/reco nstruction. RDA Project Analyst McCarty commented on the WIN Program. He noted WIN stood for "Welcoming Involvement in Neighborhoods". He indicated the WIN Program proposed a combination of iwo successful initiatives, with the track record of improving 2-way communication between cities and citizens. He stated the program would create and recognize several neighborhood associations throughout the City. Mayor Pro Tem Hickman inquired how much money the Redevelopment Agency currently had. Administrative Service Director Pressey indicated as of June 2006, the amount of the housing fund was close to $8 million. Mayor Pro Tem Hickman inquired how much money the Redevelopment Agency had to spend. Administrative Services Director Pressey responded the annual amount was an estimated $3.5 million and would grow to $4.5 million each year over the next five years. He noted the project itself was around $70 million. Mayor Magee directed staff to prepare several scenarios and give examples in the memo to be prepared for next Tuesday. Mayor Magee adjourned the Special City Council/Redevelopment Agency Study Session at 6:55 p.m. . ~ Robert E. Magee Mayor City of Lake Elsin 5 ATTEST: /~ Vivian M. Munson City Clerk