Title
Receive a report on housing-related policies and program updates planned for the 2024 and provide direction to staff.
Presenter: Darby Marshall, Housing Program Manager
Report
RECOMMENDATION:
It is recommended that the Health, Housing, and Human Service Committee receive a report on housing-related policies and programs planned for 2024 and provide direction to staff.
SUMMARY:
The Monterey County Board of Supervisors charged the Housing Advisory Committee (HAC) with reviewing and making recommendations on the Housing Element of the General Plan; the Inclusionary Housing Ordinance; and use of funds managed by the Housing Office. Additionally, the HAC may study, review, and conduct public hearings on housing problems with an eye towards developing recommendations for consideration by the Monterey County Planning Commission and Board of Supervisors to address those problems.
Annually, by April 1 of each year, Monterey County Housing & Community Development (HCD) provides a report to the Planning Commission and the Board of Supervisors as required by California Government Code Section 654200 (a)(2) on the status of progress toward implementation of the Monterey County General Plan and on progress toward meeting the County’s Regional Housing Needs Allocation (RHNA). As part of this report, HCD lists tasks and tracks progress toward General Plan implementation in a “Long-Range Work Program.” The Board of Supervisors reviews the Work Program and makes recommendations on priorities for implementation in the following year. Several items have been identified as high priority in the Work Program including updating the Housing Element of the General Plan, updating the Inclusionary Housing Ordinance, updating Accessory Dwelling Unit regulations in the Coastal Zone, and establishing criteria for implementing state housing programs like Senate Bill 9.
In addition to these General Plan implementation items, HCD staff has identified other items that are recommended for review by the HAC in the 2024 calendar year. These items include updates to the HAC by-laws, a program for use of the Monterey County Local Housing Trust Fund (MCLHTF), and a review of the affordable housing units in the County.
DISCUSSION:
HCD staff recommend the HAC consider the following items in the 2024 calendar year:
• 6th Cycle Housing Element Update
• Report on implementation of the Inclusionary Housing Ordinance and number of units provided
• Updates to the Inclusionary Housing Ordinance and Administrative Implementation Manuel
• Establish a program for the use of the MCLHTF; and
• Updates to the HAC by-laws
Below is a brief description of each item.
Housing Element Update
The County is required to update the Housing Element of the General Plan pursuant to California Gov. Code section 65581. As part of the update to the Housing Element, the County is required to identify sites and zoning designations that can accommodate a Regional Housing Needs Assessment (RHNA) of 3,326 housing units distributed across four Income levels (1,070 Very Low, 700 Low, 420 Moderate, and 1,136 Above Moderate). In concert with facilitating the County’s RHNA, the update to the Housing Element must identify and analyze significant disparities in access to opportunity (AB 686 - Affirmatively Furthering Fair Housing (AFFH) Act) and promote inclusive communities and further housing choice through government programs, policies, and operations that recognize existing racial and economic disparities and remediate these disparities.
Inclusionary Housing Ordinance & Administrative Manual
Update of the Inclusionary Housing Ordinance and Administrative Manual by June 30, 2024. The Inclusionary Housing Ordinance has not undergone significant revision since 2004 and may no longer be encouraging the production of housing as intended. The update is also necessary to update the in-lieu fee schedules, make the Ordinance consistent with current state law, and the 2010 General Plan. This project was initiated in January 2019 and been delayed by COVID and staff constraints. In November 2023, the County received draft s of both documents and have provided comments back to the consultants for additional editorial changes. Draft documents should be available for presentation to the HAC at its March 2024 meeting. Separate from, but related to the adoption of the updated Ordinance, is consideration of a non-residential impact fee that may be assessed on projects to augment Inclusionary In-Lieu Fee collections.
Monterey County Local Housing Trust Fund
Adopt Program Regulations for the Monterey County Local Housing Trust Fund (MCLHTF) by June 30, 2024. The MCLHTF was established by the Board of Supervisors in October 2022 to leverage state and federal financial resources to support the development and retention of affordable housing in Monterey County. The MCLHTF currently has $6.5 million in available capital from 8 different grant and residual income sources. Each of these sources has slightly different requirements for income targeting, where they can be used, and the allowable uses. Additionally, staff is recommending that the County reach out to all 12 cities to see if it is possible to establish the MCLHTF as a regional trust fund available for projects countywide.
Housing Advisory Committee By-Laws Update
The HAC By-Laws have not been updated since 2007 and need to be updated to address current funding programs and the possible expansion of responsibilities based on the Program Guidelines and By-Laws of the MCLHTF.
Annual Housing Report
Prepare an annual housing report, as required by the Inclusionary Housing Ordinance, for presentation to the Board of Supervisors by December 15, 2024. The Inclusionary Housing Ordinance requires reevaluation every 5-years, and evaluations and reports to the Board of Supervisors on the impact of the Ordinance. It does not appear that such a report has been made in at least the last 10-years.
The Long-Range Planning Section will request the HAC review and comment on draft Ordinances that impact housing. Ordinances that will likely be forwarded to the HAC include developing criteria for where Accessory Dwelling Units should be allowed ministerially, implementing Senate Bill 9 Lot Splits, the County Density Bonus, and implementing Assembly Bill 2295 School District Housing programs.
Staff is seeking feedback on the projects proposed for completion during the 2024 calendar year.
OTHER AGENCY INVOLVEMENT:
The HAC considered staff recommendations for the 2024 Work Plan on January 10, 2024. and provided feedback to staff.
FINANCING:
There is no impact on the General Fund associated with accepting this report. There will be a cost associated with commissioning either of the housing demand studies suggested by the HAC. How these studies are paid for will be examined if the Board of Supervisors directs staff to pursue the studies.
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
Affordable housing is an important cornerstone to provide healthy and safe living environments for the County’s residents. Affordable housing is also an essential piece of infrastructure to ensure that local employers can continue to find and employ County residents.
__Economic Development
X Administration
X Health & Human Services
X Infrastructure
__Public Safety
Prepared by: Darby Marshall, Housing Program Manager, x5391
Approved by: Craig Spencer, Acting Director of Housing and Community Development
Attachments:
Attachment A - Housing Work Plan and Referrals
Attachment B - 2024 Work Plan Presentation