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HomeMy WebLinkAbout02_038 PC ResolutionPC RESOLUTION NO. 02-038 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF TEMECULA RECOMMENDING THAT THE CITY COUNCIL ADOPT THE 2000-2005 HOUSING ELEMENT (PLANNING APPLICATION 99-0186) WHEREAS, State Law requires that local jurisdictions periodically update their housing elements; and WHEREAS, the City of Temecula adopted its first Housing Element on November 9, 1993; and WHEREAS, the State of California has completed the Regional Housing Need Assessment process for this housing element cycle; and WHEREAS, the Planning Commission considered the proposed amendment on September 23, 2002, at a duly noticed public hearing as prescribed by law, at which time the City staff and interested persons had an opportunity to, an did testify either in support or opposition to this matter; NOW, THEREFORE, THE PLANNING COMMISSION OF THE CITY OF TEMECULA DOES HEREBY RECOMMEND THAT THE CITY COUNCIL FOR THE CITY OF TEMECULA APPROVE THE 2000-2005 HOUSING ELEMENT AND ACCOMPANYING NEGATIVE DECLARATION, SUBSTANTIALLY IN THE FORMS THAT ARE ATTACHED TO THIS RESOLUTION IN EXHIBITS A AND B, RESPECTIVELY. PASSED, APPROVED AND ADOPTED Commission this 18th day of September 2002. ATTEST: by the City of Temecula Planning Dennis Chiniaeff, Chairpers(~/ D~bbie Ubnoske, Secretary {SEAL} R;\GENPLAN~Housing Element 2000\PC Reso,doc STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) ~, Debbie Ubnoske, Secretary of the Temecula Planning Commission, do hereby certify that PC Resolution No. 02-038 was duly and regularly adopted by the Planning - Commission of the City of Temecula at a regular meeting thereof he~d on the 18~h day of September, 2002, by the following vote of the Commission: AYES: 5 PLANNING COMMISSIONERS: Guerriero, Mathewson, Olhasso, Telesio, and Chairman Chiniaeff NOES: 0 PLANNING COMMISSIONERS: None ABSENT: 0 PLANNING COMMISSIONERS: None ABSTAIN: 0 PLANNING COMMISSIONERS: None Debbie Ubnoske Secretary R:\GENPLAN~Housing Element 2000\PC Reso.doc CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I I Section Page Section I. Introduction .................................................................................................... 4-1 A. Community Context ......................................................................................................... 4-1 B. State Policy and Authorization ........................................................................................ 4-2 C. Organization of the Housing Element .............................................................................. 4-2 D. Relationship to Other General Plan Elements ................................................................. 4-3 E. Public Participation .......................................................................................................... 4-3 F. Data Sources and Glossary .............................................................................................. 4-3 Section II. Housing Needs Assessment ........................................................................ 4-5 A. Population Characteristics ............................................................................................... 4-5 B. Employment Characteristics ............................................................................................ 4-7 C. Household Characteristics ............................................................................................... 4-9 D. Special Needs Populations ............................................................................................. 4-12 E. Housing Stock Characteristics ....................................................................................... 4-15 Section III. Constraints on Housing Production ......................................................... 4-26 A. Market Constraints ......................................................................................................... 4-26 B. Governmental Constraints ............................................................................................. 4-28 C. State Tax Policies and Regulations ................................................................................ 4-36 D. Infrastructure Constraints ............................................................................................... 4-37 E. Environmental Constraints ............................................................................................. 4-37 Section IV. Housing Resources ................................................................................... 4-39 A. Sites for Housing Development ..................................................................................... 4-39 B. Financial Resources ....................................................................................................... 4-47 C. Housing Developers ....................................................................................................... 4-49 D. Infrastructure and Facilities ........................................................................................... 4-50 E. Energy Conservation ...................................................................................................... 4-50 Section V. Accomplishments under Adopted Housing Element ............................. 4-51 A. Provision of Adequate Housing Sites ............................................................................ 4-51 B. Assist in Development of Affordable Housing ............................................................. 4-54 C. Government Constraints ................................................................................................ 4-53 D. Conserve and Improve Existing Affordable Housing .................................................... 4-54 E. Equal Housing Opportunity ........................................................................................... 4-58 F. Housing Element Monitoring and Reporting ................................................................. 4-58 Section VI. Housing Plan ........................................................................................................... 4-60 A. Goals and Policies .......................................................................................................... 4-60 B. Housing Programs .......................................................................................................... 4-63 Appendix A: Housing Element Glossary TOC.doc ,' July 2002 Page 4-i CITY OF TEMECULA Housing Element I Figure Figure 4-1 Figure 4-2 Table Table 4-1 Table 4-2 Table 4-3 Table 4-4 Table 4-5 Table 4-6 Table 4-7 Table 4-8 Table 4-9 Table 4-10 Table 4-11 Table 4-12 Table 4-13 Table 4-14 Table 4-15 Table 4-16 Table 4-17 Table 4-18 Table 4-19 Table 4-20 Table 4-21 Table 4-22 Table 4-23 Table 4-24 Table 4-25 Table 4-26 Table 4-27 Table 4-28 Table 4-29 Page 1990 Age Distribution ................................................................................................... 4-6 Temecula Housing Stock Composition ..................................................................... 4-16 Page Population Growth Trends ............................................................................................ 4-5 1990 Race and Ethnicity ............................................................................................... 4-7 Employment of Residents by Occupation ..................................................................... 4-7 Employment by Industry: 1996 .............'. ...................................................................... 4-8 Household Growth Trends ............................................................................................ 4-9 Average Number of Persons per Household - 1990 & 2000 ...................................... 4-10 1998 Household Income by Income Group ................................................................ 4-11 1990 Households Overpaying for Housing ................................................................ 4-12 Total Housing Units .................................................................................................... 4-15 1990 Housing Tenure .................................................................................................. 4-16 Age of Housing Stock ................................................................................................. 4-17 Median Home Prices ................................................................................................... 4-18 Housing Sales - January 1999 through June 2000 ...................................................... 4-19 Affordable Housing Costs by Income Category - Riverside County ......................... 4-19 Assisted Housing Inventory and At-Risk Status ......................................................... 4-21 Value of At-Risk Housing Units - Rancho California Apartments ............................ 4-23 Rent Subsidies Required ............................................................................................. 4-24 Disposition of Conventional Loan Applications - 1997 ............................................. 4-27 Disposition of Govermnent Backed Loan Applications - 1997 .................................. 4-27 Residential Development Standards ........................................................................... 4-30 Parking Space Requirements ...................................................................................... 4-31 Planning Fee Schedule - City of Temecula ................................................................. 4-34 Development Fees - City of Temecula ....................................................................... 4-35 Residential Development Potential of Vacant Land Outside Specific Plan Areas ..... 4-39 Remaining Approved Residential Development for Existing Specific Plans ............. 4-40 Regional Housing Growth Need by Income Group .................................................... 4-44 Summary of Residential Development Potential ........................................................ 4-46 Housing Program Summary ........................................................................................ 4-76 Surmnary of Quantified Objectives ............................................................................ 4-80 I I I I I I I I I I I I I I I I I TOC.doc · July 2002 Page 4-ii I I CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I I I. INTRODUCTION A. Community Context The City of Temecula is a growing community located along Interstate 15 in southwestern Riverside County, just north of the San Diego County line. Located in Temecula Valley, the City is surrounded by gentle rolling hills. Surrounded by this attractive natural setting and located with access to both Orange and Los Angeles Counties to the north and San Diego County to the south, the City population almost doubled during the past ten years, increasing from 27,099 persons in 1990 to 53,791 persons in 2000. With its European history beginning in the 1800's, Temecula has played an important role locally for over a century. Old Town Temecula is the historic core of the City and is located in its western portion. Change from a small agricultural community to an urbanized city began in 1964 when Kaiser Aluminum and Chemical purchased the 87,500- acre Vail Ranch. Development of the ranch occurred under the design of a master plan that continues to influence the land use pattern and circulation system of Temecula today. Much of the remaining vacant land within the City will be developed under the control of approved specific plans. The majority (79%) of the existing housing in Temecula consists of single-family houses, with the remainder consisting of multi-family units. The high number of single-family homes is reflective of the City's young family-oriented population and desire to maintain its rural traditions. In comparison to the surrounding communities, the cost of purchasing a new home in Temecula is high, with a 1999 median price of $195,000. In the neighboring communities of Hemet, Lake Elsinore, Murrieta, and Perris the 1999 median home price ranges from $79,250 to $169,000, while the median home price in the County is $130,000. In recent years, the housing market in Temecula has very much been influenced by the growth pressure in San Diego County. As housing 'prices in San Diego County began catching up with prices in south Orange County, many people who work in San Diego have chosen to live in Temecula, placing significant pressure on the Temecula housing market. Employment opportunities exist within Temecula, allowing residents to work and live within the City. In 1990, the Southern California Association of Governments (SCAG) estimated an average of 1.66 jobs was available in Temecula for each household, approximating the City average of 1.62 wage earners per household. The jobs/housing ratio in Temecula is anticipated .to decrease to only 1.06 jobs per household by 2005, as the construction of new housing outpaces employment growth. I. Intro.doc · July 2002 Page 4-1 CITY OF TEMECULA Housing Element B. State Policy and Authorization The California State Legislature has identified the attainment of a decent home and suitable living environment for every Californian as the State's major housing goal. Recognizing the important role of local planning programs in the pursuit of this goal, the Legislature has mandated that all cities and counties prepare a housing element as part of their comprehensive General Plans. State Housing Element Law requires all cities and counties to update their Housing Elements at least every five years to reflect a community's changing needs. However, the current housing element cycle has been extended to cover a ten-year period due to the lack · of state budget for the Regional Councils of Governments (such as the Southern California Association of Governments) to generate the regional housing growth allocations. Temecula's most recent Housing Element was prepared in 1993 and is currently being updated to cover the period of July 1, 2000 through June 30, 2005. C. Organization of the Housing Element The City of Temecula is facing important housing issues such as: preserving the historic traditions of the commtmity; ensuring that new development is compatible with the existing character; providing a range of housing that meets the needs of all residents; ensuring that the affordable housing is available to all seginents of the community; and balancing employment with housing opportunities. This Housing Element evaluates housing needs in Temecula based on its demographic and housing characteristics. The Element also compiles an inventory of resources available to address identified housing needs, assesses the effectiveness and appropriateness of existing housing programs being implemented by the City, and crafts a housing strategy that would effectively address the housing issues relating to availability, adequacy, and affordability within the limitations of the City. This Housing Element represents a policy statement indicating that Temecula will continue to strive toward maintaining and enhancing its housing quality and its desirability as a place to work and live. The Temecula Housing Element is comprised of the following major components: · An analysis of the City's population, household and employment base, and the characteristics of the City's housing stock (Section II); · Review of potential constraints to meeting the City's identified housing needs (Section III); · An evaluation of opportunities and resources that will further the development of new housing (Section IV); I I I I I I i I I I I I I I I I I 1. lniro.doc * July 2002 Page 4-2 I I CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I I An evaluation of accomplishments under the adopted Housing Element (Section V); and A statement of the Housing Plan to address the City's identified housing needs, including housing goals, policies and programs (Section VI). D. Relationship to Other General Plan Elements The Temecula General Plan is comprised of the following 10 elements: 1) Land Use; 2) Circulation; 3) Housing; 4) Open Space/Conservation; 5) Growth Management/Public Facilities; 6) Public Safety; 7) Noise; 8) Air Quality; 9) Community Design; and 10) Economic Development. Background information and policy direction presented in one element is also reflected in other General Plan elements. For example, residential development capacities established in the Land Use Element are incorporated within the Housing Element. The General Plan goals and policies were reviewed for consistency with proposals recommended in this Housing Element update. This Housing Element builds upon other General Plan elements and is consistent with the goals and policies set forth by the General Plan. City staff maintains a conscious effort to ensure that revisions to any element of the General Plan achieve internal consistency among all General Plan elements. Specifically, the City will be undertaking a comprehensive General Plan update in 2001. As part of that update, all General Plan goals, policies, and programs will be reviewed for internal consistency. E. Public Participation Residents of Temecula have several opportunities to provide input during the development of the Housing Element. On August 1, 2000, the City conducted a publicly noticed study session before the Planning Commission and City Council to discuss housing needs in the City and to provide policy directions for the drafting of the Element. During its 45-day review of the Draft Housing Element by the California State Department of Housing and Community Development (HCD), the Draft Element is available for review by interested individuals and organizations. Notice of Availability of the Draft Element was published in The Press Enterprise and direct mailing sent to the following organizations representing the interests of low and moderate income households and persons with special needs: · Coachella Valley Housing Coalition · Rancho-Temecula Valley Senior Center · Fair Housing Council of Riverside · Riverside Center for Independent Living · Catholic Charities · Housing Authority of the County of Riverside I. lntro.doc * July 2002 Page 4-3 CITY OF TEMECULA Housing Element I In addition, public hearings will be held on the Housing Element before both the Planning Commission and City Council. Notification will be published in the local newspaper in advance of each hearing. Housing developers and organizations representing the interests of residents with special housing needs will be directly notified of the availability of the Draft Element and the public hearing dates. F. Data Sources and Glossary The data used for the completion of this Housing Element comes from a variety of sources, including the 1990 Census, various studies produced by the City of Temecula, Southern California Association of Governments (SCAG), the California Department of Finance, local newspapers, local real estate agents, as well as professional associations. The data sources represent the best data available at the time this Housing Element was prepared. This Housing Element, along with the state-mandated requirements, includes a Glossary of terms used in the Element. This Glossary has been included to allow readers to better understand the terminology used in the Housing Element discussion, and can be found in the appendix of the Element. I I I I I I I I I I I I I I I I I 1. lntro.doc * July 2002 Page 4-4 I I CITY OF TEMECULA Housing Element I I I I I I I II. HOUSING NEEDS ASSESSMENT This section of the Housing Element describes the supply and demand for housing in Temecula and is broken into five subsections, addressing the characteristics of population, employment, households, special needs populations, and housing stock. This analysis provides the basis for developing a successful housing program that meets the needs of the community. A. Population Characteristics 1. Population Growth Trends Temecula is the fifth largest city among the 24 cities in the County of Riverside. According to the Census, Temecula had a population of 27,099 in 1990. During the period from 1990 to 2000, the California Department of Finance (DOF) estimates that the City population almost doubled. As depicted in Table 4-1, Temecula experienced the largest growth in the last ten years in comparison to surrounding communities, and almost three times the growth that the County as a whole experienced. Table 4-1 Population Growth Trends % Change Projected Projected % Change Jurisdiction 1990' 2000 1990-2000 2005 2000-2005 Temecula 27,099 53,791 98% 72,080 34% Hemet 36,094 62,751 74% 75,646 21% Lake Elsinore 18,285 30,370 66% 53,261 75% Murfieta* 24,264 43,989 81% ** ** Perris 21,460 32,369 51% 55,062 70% Riverside County 1,170,413 1,522,855 30% 1,976,938 30% As Mutheta was not incorporated in 1990, 1992 Depadment of Finance population estimates are utilizad [or this analysis. " 2005 SCAG growth projectior~s for p3pulation ace not available for Mutheta, Sources: 1990 Census, California Department of Finance, Januar'/1,1992 and January 1~ 2000, and SC~G Baseline Growth Projections, adopted April 16, 1998. I I I I I I i I I I I SCAG estimates that Temecula will continue to experience substantial growth during the next five years. The level of growth however, is anticipated to be less than that experienced during the last ten years, with a projected growth of 34% to about 72,000 persons. For Riverside County, an overall 30% growth is expected for the next five years. The neighboring cities of Lake Elsinore and Perris are expected to experience greater growth in comparison to Temecula in the coming years. Temecula's share of the total population in Riverside County is projected to remain at slightly below 4% in 2005. II. Needs.doc * July 2002 Page 4-5 CITY OF TEMECULA Housing Element I 2. Age Characteristics The age structure of a population is an important factor in evaluating housing needs and projecting the distribution of future housing development. Traditionally, both the young adult population (20-34) and the elderly population (65+) tend to prefer low to moderate cost, smaller units. Persons between 35 to 54 years old usually reside in higher cost, larger units because they typically have higher incomes and a larger household size. As shown in Figure 4-1, the 1990 population of Temecula contains a younger population than the County as a whole. The median age of Temecula residents was 29.1, while the County median age was 31.5. While the City population has grown significantly since 1990, the City has remained as a family-oriented community and mostly likely has maintained a similar age structure as in 1990. This age structure indicates that the City may require larger single-family homes to meet the needs of families with their school age children, as well as smaller, moderately priced houses and multi-family units for those younger individuals who do not have children, or are just beginning their families. Figure 4-1 1990 Age Distribution 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% <5 [] Temecula · Riversde County 5-17 18-20 21-24 2544 45-54 55-59 60-64 65-74 75-84 85+ Age Groups Source: 1990 Census 3. Race/Ethnicity Characteristics The racial and ethnic composition of a population affects housing needs because of the unique household characteristics of different racial/ethnic groups. These characteristics tend to correlate with other factors such as family size, housing location choices, and mobility. As shown in Table 4-2, the large majority (81%) of the 1990 population in Temecula was White, with Hispanics making up the next largest ethnic group (15%). In comparison, Riverside County contains a much more diverse population. Only 64% I I I I I I I I I I I I I I I I I I1. Needs.doc * July 2002 Page 4-6 I CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I I of the County's 1990 population was White. The next largest ethnic group was the Hispanic population at 26%. Table 4-2 1990 Race and Ethnicity Race/ Number of Temecula % of Temecula's Number of Riverside % of Riverside Ethnidty Residents Population County Residents County's Population White 21,882 80.7% 754,140 64.4% Black 395 1.5% 59,966 5.1% Asian/Other 883 3.3% 48,793 4.2% Hispanic 3,939 14.5% 307,514 26.3% Total 27,099 100.0% 1,170,413 100.0% Source: 1990 Census Since 1990, the racial and ethnic composition of Temecula's population has changed. This is reflected in the school enrollment data obtained from the State Department of Education. Enrollment data for the 1997/98 school year in the Temecula Valley Unified School District showed that only 71 percent of the students were White, 18 percent were Hispanic, 7 percent were Asian and others, and 4 percent were Black. B. Employment Characteristics 1. Employment Growth According to the 1990 Census, 13,932 Temecula residents were in the labor force, representing a labor participation rate of 74%. (The labor force includes employed and unemployed persons aged 16 years and above.) As shown in Table 4-3, most of the residents were employed in two categories of occupation: managerial and professional specialty (29%) and sales, technical, and administrative support (33%). In 1990, the unemployment rate was 3.1%. According to the State Employment Development Department, Temecula's unemployment rate in June 2000 was 2.9%, much lower than the countywide rate of 4.7%. Table 4-3 Employment of Residents by Occupation Occupation Number of Jobs % of Total Managerial/Profession al 3,753 28.6% Sales/Technical/Administrative (Suppod) 4,349 33.1% Service Occupation 1,303 9.9% Predsion Production, Craft & Repair 1,861 14.2% Operators, Fabrications, Laborers 1,537 11.7% Farming, Forestry, Fishing 339 2.6% Total 13,142 100.0% Source: 1990 Census II. Needs.doc · July 2002 Page 4-7 CITY OF TEMECULA Housing Element 1 A City study of employment opporttmities indicated that there were 19,714 jobs in Temecula in 1996. Employment by industry is tabulated in Table 4-4. As shown, manufacturing and retail trade were the primary industries in Temecula. Table 4-4 Employment by Industry: 1996 Industry # of Jobs % of Total Manufacturing 5,455 27.7% Retail Trade 4,370 22.2% Government, Education, Utilities 1,910 9.7% Distribution & Transportation 1,445 7.3% Agriculture & Mining 1,193 6.1% Support Services 1,048 5.3% Construction 1,130 5.7% Hotel & Amusement 860 4.4% Business Services 777 3.9% Finance & Real Estate 571 2.9% Health Services 563 2.6% Engineering & Management 393 2.0% Total 19,714 100.0% Source: ~ of Temecula C~ramunity I:h'ofile, 1996 According to SCAG, the City had an employment base of 15,184 jobs in 1990, which is projected to increase by 53% to 23,179 by the year 2005, representing an average annual growth of 3.5%. With this projected increase in employment, there will likely be an associated increase in the demand for housing in the City; However, SCAG employment estimates over the last ten years have proven to be consistently below actual in-City employment levels. 2. Jobs-Housing Ratio A general measure of the balance between a community's employment opportunities and the housing needs of its residents is through a "jobs-housing ratio" test. According to the Census, Temecula had an average of 1.62 wage-earners in a family while SCAG estimated that the City had 1.66 jobs per household in 1990. These figures generally indicated that adequate employment opportunitiesexisted in the City, potentially allowing a portion of its residents to work there. In comparison, Riverside County had 1.50 wage-earners per family, but offered only 0.89 jobs per household in 1990. Overall, more residents in other parts of the County worked outside of their place of residence than in Temecula. However, by the year 2005, the jobs-housing ratio in Temecula is projected to decrease substantially to 1.06, indicating that employment growth in the City is not projected to keep pace 'with household growth. If SCAG employment estimates prove to be accurate, by the year 2005, an increased number of Temecula residents will commute to other places in the region for employment. The majority of Temecula residents commute to outside of the City to work in San Diego and Orange Counties. As a result, I I I I I I I I I I I I I I i I I 11. Needs.doc * July 2002 Page 4-8 I I CITY OF TEMECULA Housing Element I I I I I I ! I I I I I I I I I I I the Temecula housing market is directly tied to the San Diego and Orange County markets. C. Household Characteristics 1. Household Growth Trends Parallel to the population growth trends shown in Table 4-1, household growth in Temecula exceeded that of the surrounding communities and the County as a whole. Between 1990 and 2000, the number of households in Temecula increased by 74% while that in the County only increased by 20%. Comparing the City population growth (98%) with its household growth (74%) indicates that the City has become more family-oriented with increasing household size. Overall, Temecula is expected to grow at a faster pace than the County as shown in Table 4-5. However, the discrepancy is expected to shrink by 2005 when Temecula's household growth is projected at 37% and the County's at 32%. Table 4-5 Household Growth Trends % Change Projected Projected % Change Jurisdiction 1990* 2000 1990-2000 2005 2000-2005 Temecula 9,130 15,875 74% 21,816 37% Hemet 17,397 27,241 57% 33,645 24% Lake Elsinore 6,066 8,844 46% 16,199 83% Murdeta* 6,849 10,296 50% ** I ** Perds 6,726 8,850 32% 16,811 90% Riverside County 402,067 483,580 20% 640,311 32% As Murdeta was not incorporated in ~ 990, 1992 Depariment of Finance household estimates are utilized for this analysis. 2005 SCAG growth projections lor households are not available for Murdeta. Sources: 1990 C~nsus, California Depaflment of Finance, January 1,1992 and January 1, 2000 md SCAG B~seline Growth Projection, adopted April 16, 1998. 2. Household Composition and Size The characteristics of the households in a city are important indicators of the type of housing needed in that community. The Census defines a household as all persons who occupy a housing unit, which may include families related through marriage or blood, unrelated individuals living together, or individuals living alone. People living in retirement or convalescent homes, dormitories, or other group living situations are not considered households. According to the 1990 Census, 80% of the 9,130 households in Temecula were considered families~. Among the 1,861 non-family households, 1,264 (68%) were Families are defined by the Census as people who live together in a household who are related to the householder by birth, marriage, or adoption. IL Needs.doc * July 2002 Page 4-9 CITY OF TEMECULA Housing Element I single people living alone, including 259 (14%) elderly persons living alone. Overall, only 12 Temecula residents lived in group quarters in 1990. Household size is an important indicator for identifying sources of population growth as well as overcrowding in individual housing traits. A city's average household size may decline in communities where the population is aging. As depicted in Table 4-6, the average persons per household increased by 14% in Temecula during the period of 1990-2000. This is consistent with the large number of families with school age children living in Temecula. Average household sizes in Lake Elsinor and Pen-is experienced similar growth as that in Temecula and are currently at similar levels as Temecula, reflecting similar household trends in these three neighboring cities. H6wever, household trends in Hemet and Mmrieta are drastically different than those in Temecula as indicated by the growth in average household sizes. Table 4-6 Average Number of Persons per Household 1990 & 2000 Average Persons/Household % Change Jurisdiction 1990 2000 1990 - 2000 Temecula 2.97 3.39 14,1% Hemet 2.04 2.27 9.7% Lake Elsinore 2.99 3.41 14.1% Murrieta* 3.53 4.27 21.0% Perds 3.16 3.63 14.9% Riverside County 2.85 3.09 8.4% · .M Murdeta was not incorporated in 1990, 1992 Depadment of Finance persons pe~ household es~rnates are utilized for this analysis. Soume: 1990 Census and California DeparLmenl of Finance, January 1, 1992 and January 1, 2000. 3. Household Income The income earned by a household is an important indicator of the household's ability to acquire adequate housing. While Upper Income households have more discretionary income to spend on housing, Low and Moderate Income households are more limited in the range of housing that they can afford. Typically, as the income of households decreases the incidence of overpayment and ovemrowding increases. The California Department of Housing and Community Development (HCD) has developed the following income categories: Very Low Income Households earn between 0 and 50% of the Median Family Income (MFI), adjusted for household size; Low Income Households cam between 51 and 80% of the MFI, adjusted for household size; I I I I I I ! I I I I I I I I I I U. Needs.doc · July 2002 Page 4-10 I I CITY OF TEMECULA Housing Element I I I ! I I I I I I I I I I I I I · Moderate Income Households cam between 81 and 120% of the MFI, adjusted for household size; and, · Above Moderate/Upper Income Households earn over 120% of the MFI, adjusted for household size. As part of the Regional Housing Needs Assessment (RHNA), SCAG has developed estimates on income distribution for all jurisdictions within the SCAG region in 1998. The income distributions for Temecula and Riverside County are presented in Table 4- 7. Overall, household incomes in Temecula are higher than Countywide, with about 22% of households in the City earning Very Low and Low incomes, while more than 35% of the households in the County were lower incomes. Median household income in Temecula was estimated at $56,946 in 1998, which continued to be higher than the Countywide median income of only $46,500. One reason for the higher median income in Temecula is that many of Temecula's residents work in San Diego and Orange Counties where the median income and associated wages are higher. Table 4-7 1998 Household Income by Income Group City of Temecula Owner- Renter- Total Western Riverside Income Group Households Households Households County Very Low Income 4.6% 19.8% 10.1% 19.9% Low Income 7.1% 18.6% 11.3% 15.5% Moderate Income 17.3% 27.7% 21.1% 20.9% Upper Income 71.0% 33.9% 57.5% 43.7% Total 100.0% 100.0% 100.0% 100.0% Source: Regional Housing Needs Assessment, SCAG, 1998. 4. Overcrowding An overcrowded household is typically defined as one with more than one person per room, excluding bathrooms, kitchens, hallways, and porches. A severely overcrowded household is defined as one with more than 1.5 persons per room. Overcrowding in results from either a lack of affordable housing and/or a lack of available housing units of adequate size. According to the 1990 Census, only 117 (2%) of the owner-households and 321 (9.7%) of the renter-households were overcrowded. In comparison, overcrowding was a more prevalent issue Countywide, with 6% of the owner-households and 18% of the renter- households living in overcrowded conditions. 5. Overpayment State and Federal standards consider a family as overpaying for housing if it spends more than 30% of its gross income on housing. A household that is spending more than it can afford for housing has less money available for other necessities and emergency I II. Needs.doc * July 2002 Page 4-11 CITY OF TEMECULA Housing Element I expenditures. Very Low Income households overpaying for housing are more likely to be at risk of becoming homeless than other households. Renter-households overpay for their housing costs more often than owner-households because of their typically lower incomes. Compared to renters, overpayment by owners is less of a concern because homeowners have the option to refinance the mortgage, or to sell the house and move into rentals or buy a less expensive home. As shown in Table 4-8 below, among the City's overpaying households, 40% were Very Low and Low Income households and 60% were Moderate and Upper Income households. The majority of the Moderate and Upper Income households with housing overpayments were homeowners. Overall, lower income renter-households were more impacted by housing overpayment than other groups. Similarly, Countywide, approximately 35% of the households experiencing housing overpayment in 1990 eamed lower incomes. Table 4-8 I I I I I I 1990 Households Overpaying for Housing Total Households Renter-Households Overpaying Overpaying Owner-Households Overpaying Income Group # % # % # % Very Low Income 850 21.3% 669 45.2% 181 7.2% Low Income 757 19.0% 434 29.3% 323 12.9% Moderate/Upper Income 2,385 59.7% 378 25.5% 2,007 79.9% Total Overpaying Households 3,992 100.0% 1,481 100.0% 2,511 100.0% Source: CHAS Databook, HUD. 1993 I I I D. Special Needs Populations Certain segments of the population may have a more difficult time finding decent, affordable housing due to their special circumstances or needs. These "special needs" population include elderly persons, disabled persons, large households, single parent households, farm workers, and the homeless. 1. Agricultural Workers Agriculture is a predominant industry in Riverside County and the area is divided into four distinct agricultural districts. The City of Temecula is located within the San Jacinto/Temecula agricultural district. The 1990 Census reported 339 Temecula residents employed in fanning, forestry, and fishing occupations. While there is no agricultural operation in the City, nearby wineries represent an employment base for agricultural workers. The City study indicates that 1,193 agriculture-related jobs were located in Temecula in 1996. Agricultural workers face various housing issues due to their typically lower incomes and the seasonal nature of their work. I I I I i I I I Needs.doc · July 2002 Page 4-12 I CITY OF TEMECULA Housing Element I I I i I I I I I I I i I I I I I 2. Single Parents Single-parent families with children often require special attention due to their needs for affordable childcare, health care, and housing assistance. Female-headed families with children particularly tend to have lower incomes, thus limiting housing availability for this group. According to the 1990 Census, 750 households in Temecula were headed by single- parents, 70% of which were headed by females. Among the female-headed households, 43% were living below the poverty level. Elderly The special needs of the elderly are a ftmction of their often lower or fixed income. In addition, housing for the elderly often requires special attention in design to allow greater access and mobility. Housing located within the vicinity of community facilities and public transportation also facilitates mobility of the elderly in the conununity. According to the Census, Temecula had 1,709 residents age 65 or older, representing slightly more than 6% of the total population. In Temecula, about 14% of all owner- householders in 1990 were over 65 years of age. Furthermore, approximately 30% of the elderly residents were reported to have self-care and mobility limitations and/or work disabilities. 4. Persons with Disabilities In 1990, about 9% of the Temecula residents age 16 or over were recorded by the Census as experiencing self-care and mobility limitations and/or work disabilities. Physical and mental disabilities can hinder a person's access to traditionally designed housing units (and other facilities) as well as potentially limit the ability to eam income. Housing that satisfies the design and location requirements of disabled persons is limited in supply and often costly to provide. Housing opportunities for disabled persons can be addressed through the provision of affordable, bather-free housing. In addition to the development of new units, rehabilitation assistance can also be provided to disabled residents to make necessary improvements to remove architectural barriers of existing units. I Il. Needs.doc · July 2002 Page 4-13 CITY OF TEMECULA Housing Element 5. Large Households Large households are defined as those with five or more persons. The 1990 Census reported 1,336 households in Temecula had five or more members, 70% were owner- households and 30% were renters. Typically, the availability of adequately sized and affordable housing units is a major obstacle facing large households. In 1990, Temecula had 3,528 three-bedroom housing units and another 3,166 housing units with four or more bedrooms. Thus, the City has an adequate supply of large-size housing units. The issue for large households is related to affordability, particularly among renters. According to the Census, 48% of the large renter-households were overpaying for housing. Homeless The homeless population refers to persons lacking consistent and adequate shelter. According to the 1990 Census, there were no homeless persons reported visible at street locations in Temecula. The Temecula Police Department indicated that approximately 20 to 22 homeless persons were estimated to be living in the Old Town retail area. A program was put into place to find housing for these persons and all were placed. Since then, only a few homeless persons travelling through are found in the City. Outside of the City in the agricultural areas, rural homeless persons such as migrant farm workers are occasionally identified. A number of facilities and service agencies serve the homeless in the Temecula Valley area: Corner Stone Outreach, Inc. (Perris) - A one-year supervised residential structured program for males aged 18 to 60. This program offers shelter, food, clothing, Christian education, and assistance in legal matters. Mustard Seed (Lake Elsinore) Transitional housing facility for women and their children. Mustard Seed operates a four-bedroom facility that can accommodate up to 15 women and children. The maximum stay is six months and education on parenting skills, finance, and other life skills is provided. Valley Restart Shelter (Hemet) - Drop-in center for homeless people offering showers, meals, telephone, counseling, transportation, temporary mailing address, laundry facilities, job information and referral. I I I I I I i I I I I I I I I I I 1L Needs.doc * July 2002 Page 4-14 I CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I E. Housing Stock.Characteristics A housing unit is defined as a house, apartment or single room, occupied as a separate living quarter or, if vacant, intended for occupancy as a separate living quarter. Separate living quarters are those in which the occupants live and eat separately from any other persons in the building and that have direct access fi'om the outside of a building or through a common hall. 1. Housing Growth Trends As shown in Table 4-9, the housing stock in Temecula increased by almost 74% during the period of 1990 to 2000. Temecula had the greatest increase in its housing stock compared to the surrounding communities. However, over the next few years, Temecula is expected to experience only moderate housing growth, while a substantial housing increase is anticipated for Lake Elsinore and Penis. 2. Housing Type The majority (78%) of the existing housing stock in Temecula consists of single-family detached and attached homes (see Figure 4-2). Single-family housing units are dispersed throughout the City. Multi-family developments of five or more units represent the next largest segment (19%) of the housing stock, and the greatest concentration of apartment complexes is located along Margarita Drive. Currently consisting of 197 units, Heritage Mobilehome Park located in the northeastern comer of the City is the only mobilehome park in Temecula. The City has recently approved an additional of 13 spaces to be provided in that park. Table 4-9 Total Housing Units % Change % Change Judsdiction 1990' 2000 1990-2000 2005 2000-2005 Temecula 10,659 18,534 74% 21,816 18% Hemet 19,692 30,802 56% 33,645 9% Lake Elsinore 6,981 10,150 45% 16,199 60% Murrieta* 9,664 14,528 50% Perris 7,761 10,444 35% 16,811 61% Riverside County 483,847 582,419 20% 640,311 10% As Murrieta was not incorporated in 1990, 1992 Department of Finance housing unit estimates are utilized for this analysis. ** 2005 SCAG grc~vth projections for housing units are not available for Murdeta. Sources: 1990 Census, California De pa,'Iment of Finance, January 1, 1992 and Januay 1, 2000 and SCAG Baseline Growth Projections adopted April 16, 1998. I II. Needs.doc · July 2002 Page 4-15 CITY OF TEMECULA Housing Element I Figure 4-2 Temecula Housing Stock Composition MalU Far~ty (24 mits) 327 un~ t2%) Single Family (detached) 14,287 unit~ (77%) Source: California Department of Finance, January 1,2000. 3. Tenure Table 4-10 illustrates the tenure distribution of occupied housing in Temecula and in the surrounding communities. Compared to the surrounding communities Temecula has an average rate of homeownership. Correlating the high percentage of single- family homes that exist in Temecula and the average proportion of renters in the City indicates that many single-family homes are used as rentals. Table 4-10 1990 Housing Tenure Occupied Dwelling Units % of Total % of Total Occupied Total Occupied Units Jurisdiction Owner Occupied Occupied Units Renter Occupied Units Temecula 5,806 63.6% 3,324 36.4% 9,130 Hamer 10,844 62.3% 6,553 37.7% 17,397 Lake 3,565 58.8% 2,501 41.2% 6,066 Elsinore Murdeta* 424 74.6% 144 25.4% 568 Perris 4,703 69.9% 2,023 30.1% 6,726 Riverside 270,876 67.4% 131,191 32.6% 402,067 County 1990 Census data applied to ~e unthcorporated Murdeta CDP, which did not include all of the area incorporated into the City of Murdela. Source: 1990 Census and California Oeparunent o1 Finance, January 1, 1999, I I I I I I I I I I ! I I I I I I I1. Needs.doc · July 2002 Page 4-16 I I CITY OF TEMECULA Housing Element I I I I I I ! I I ! I I I I I I I I The rate of vacancy is a measure of housing availability in a community. A vacancy rate of 5% generally indicates an adequate supply of housing with room for mobility. According to the 2000 DOF data, the overall vacancy rate in Temecula was 14.4% while that in the County was recorded at 17.0%. The relatively high vacancy rate in Temecula and in the County is attributed to the high level of new residential development in the area, with many housing units continually coming on the market. 4. Age and Housing Stock Conditions The age of housing is commonly used as a measure of when housing may begin to require major repairs. In general, housing units over 30 years old are likely to exhibit signs of rehabilitation needs, such as new roofing, foundation work, and new plumbing. As depicted in Table 4-11, the majority of the housing units in Temecula (92%) were built between 1980 through 2000 and most likely are in excellent condition. Only about 1% of the existing housing stock is over 30 years old. While approximately 7 percent of the units were built in the 1970s and will be approaching 30 years old during this Housing Element cycle, these units were built in compliance with modem building standards and will not likely to deteriorate rapidly. According to City staff, no housing unit will need to be demolished or replaced due to dilapidated conditions. (However, the Agency has a few units that may be removed in order to facilitate intensification of the sites. The Agency will ensure that any applicable replacement/relocation requirement is met.) Also, based on the housing age and condition in the City, only a small portion of the City's 1,600 older housing units would require rehabilitation (not more than 20% or 320 units) and only some households would require assistance in making the needed repairs or improvements. The City estimates a rehabilitation assistance need for 150 households over the next five years. Table 4-11 Age of Housing Stock Year Built Number of Units % of Total April 1990 - January 2000 7,875 43% 1980 to March 1990 9,073 49% 1970 to 1979 1,361 7% 1960 to 1969 170 <1% 1950 to 1959 13 <1% 1940 to 1949 0 0% 1939 or earlier 42 <1% Sources: 1990 Census and 2000 Pepsi.on and Housing Estimates, Depariment of Finance 1I. Needs.doc * July 2002 Page 4-17 CITY OF TEMECULA Housing Element I 5. Housing Costs Ownership Housing Temecula is one of the fastest growing and most prosperous communities in the Inland Empire. With its setting amidst the wine country and location along 1-15 mid-way between San Diego and Orange counties, Temecula experiences growth from both directions. As a result, Temecula was one of the first communities to see its residential real estate market recovering from Southern California's steep recession. As evidenced in Table 4-12, median home price in Temecula increased significantly between 1998 and 1999 while median prices in surrounding communities even declined slightly or increased only nominally. Since 1999, housing price increases have stabilized in Temecula. According to the California Association of Realtors, housing prices in Temecula are higher than in some surrounding communities but lower than in Corona, Murrieta, Norco, and Rancho Mirage as of December 2001. While Temecula is one of the highest cost housing markets in Riverside County, compared to San Diego and Orange Counties, where the majority of the City's residents work, the City's housing costs are substantially lower. For example, for the first quarter of 2001, new homes in Temecula sold for an average of $226,000, while new homes in north San Diego County sold for an average of $415,000. Table 4-12 Median Home Prices Jurisdiction June 1999 June 1998 % Change Ternecula $195,000 $157,637 23.7% Hemet $79,250 $79,500 -0.3% Lake Elsinore $114,000 $114,500 ~3.95% Murdeta $169,000 $158,000 7.0% Perds $85,000 $84,500 0.6% Riverside County $130,000 $126,000 3,2% Source: California Assccialio~ of Realtors Reflective of the housing stock, most housing sales in Temecula are for three- and four- bedroom single-family homes. During the 18-month period between January 1999 and June 2000, 1,188 housing sales were executed, of which 85% were three- and four- bedroom single-family homes. Housing units in Temecula are sold for a wide range of prices. As shown in Table 4-13, four-bedroom homes are sold from $95,000 to $645,000, indicating that some older housing units are sold for much lower prices while newer and custom homes are priced much higher. Condominium sales in Temecula exhibited similar patterns of wide price ranges. I i I I I I I I I ! i I I I I I I 11. Needs.doc · July 2002 Page 4-18 I CITY OF TEMECULA Housing Element I i I I I I I I I ! Table 4~13 Housing Sales January 1999 through June 2000 Single-Family Median Pdce Pdce Range Units Sold % of Total 2-bedrcom $126,250 $47,000.$750,000 52 4.5% 3-bedroom $153,000 $68,181-$560,000 553 48.2% &bedroom $190,000 $95,000.$645,000 456 39.8% 5-bedroom $254,000 $152,000-$740,000 81 7.1% 6-bedroom $252,000 $198,000,$400,000 5 0.1% Condominiums Median Pdce Price Range Units Sold % of Total 2-bedroom $107,000 $72,000-$165,854 15 36.6% 3.-bedroom $120,000 $69,500.$142,500 25 61.0% 4Jcedroom $148,000 $148,000 1 0.4% Source: Los Angeles Times, Dataquick Sep,/ice Housing affordability is dependent upon income and housing costs. According to the HUD guidelines for 2000, the median family income (MFI) for a family of four in Riverside County is $47,400. Based on this median income, the following maximum income limits for a four-person family can be established: · Very Low Income households (0 to 50% of MF1) earn a maximum of $23,700 · Low Income households (51 to 80% of MF1) earn a maximtun of $37,900 · Moderate Income households (81 to 120% of MFI) earn a maximum of $56,900 · Median Income households earn $47,400 Table 4-14 Affordable Housing Costs by Income Category Riverside County Maximum Monthly Affordable Affordable Taxes/ Affordable Income Category Income Housing Cost Utility Rent Maintenance Home Pdce Very Low $23,700 $592 $50 $542 $50 $70,300 Low $37,900 $947 $100 $847 $100 $106,900 Moderate $56,900 $1,422 $150 $1,272 $150 $178,400 Median $47,400 $1,185 $1 O0 $1,085 $100 $148,600 Maximum affordable home price based on a 30-year loan at 7.5% interest, assuming that the homebuyer can afford to pay a 10% down@aymenl and closing costs. I I i I I I I I Assuming that the potential homebuyer within each income group has sufficient credit, downpayment (10%), and maintains affordable housing expenses (i.e. spends no more than 30% of their gross income on the mortgage, taxes, and insurance), the maximum affordable home price can be determined for each income group. Table 4-14 shows the maximum housing prices affordable to the various income groups. Based on the median home prices shown in Table 4-13, housing ownership opportunities are available in Temecula for some Low Income and most Moderate Income households, although Very Low Income households would not be able to afford median prices housing in the City. Most small condominiums and some small single-family homes are affordable to Low Income households. In addition, most two-bedroom houses and I1. Needs.doc · July 2002 Page 4-19 CITY OF TEMECULA Housing Element I some three- and four-bedroom houses, as well as all condominium units are affordable to Moderate Income households. Rental Housing Current rental information for private rental units in Temecula was obtained through the 1998 Old Town Temecula Market Assessment that surveyed 13 apartment complexes throughout the City containing a total of 3,120 units. The large majority (70%) of the units in Temecula are two-bedroom units. In 1998, the average rent in Temecula was $515 for a one-bedroom unit, $625 for a two-bedroom unit, and $695 for a three-bedroom unit. An intemet search of limited apartments for rent in Temecula indicates that rents have gone up by about 15 to 20% for most one- and two-bedroom units. Based on the household income limits identified in Table 4-14, a Low Income household can afford to pay $847 per month, while a Moderate Income household can afford to pay up to $1,272 per month. Based on these limits, Low and Moderate Income households can afford to live in Temecula even if rents have increased significantly by 20% since the survey. As Very Low Income households can only afford to pay $542 a month in rent, they will not be able to afford market rate rents without paying in excess of 30% of their gross income under most circumstances. Often large households with Very Low Incomes have to resort to smaller units in order to' save on housing costs, but overcrowding typically occurs. 6. Assisted Housing at Risk of Conversion Inventory of Assisted Housing State Housing Element law requires cities to prepare an inventory including all assisted multi-family rental units which are eligible to convert to non-low income housing uses due to termination of subsidy contract, mortgage prepayment, or expiring use restrictions. Under Housing Element law, this inventory is required to cover an evaluation period following the statutory due date of the Housing Element (July 1, 2000). Thus, this at-risk housing analysis covers the period from July 1, 2000 through June 30, 2010. Table 4-15 provides an inventory of the City's assisted multi-family housing stock by various government assistance programs. This inventory includes all multi-family rental units assisted under federal, state, and/or local programs, including HUD programs, state and local bond programs, redevelopment programs, and local density bonus or direct assistance programs. I i I I I I I I I I I I i I I I I IL Needs.doc · July 2002 Page 4-20 I ! CITY OF TEMECULA Housing Element I I I I I I I I I I I I I ! I I I I Table 4-15 Assisted Housin Inventory and At Risk Status Total Project Eadiest # of Units At Project Units Pr~ram Conversion Date Risk Temecula Villas 96 Section 8 New Const, 6/1999 48 (28837 Pujol St.) , (expired) Woodcreek 344 Mortgage Revenue 3/31/2003 71 (4220 Morago Rd.) Bond Rancho California 55 Section 8 New Const. 3/15/2004 55 (29210 Stonewood Section 221(d)4 Rd.) Rancho West 150 RDA Revenue Bond 4/8/2026 150 (4220 Main St.) HOME Rancho Creek 30 RDA Loan 9/30/2026 30 (28464 Felix Valdez Rd.) Mission Village 76 RDA Revenue Bond 7/1612028 76 Apartments (28497 Pujol St.) Oaktree 40 FmHA New Const. 8/8/2004 40 (42176 Lindley Lane) Section 515/Section 8 Creekside 48 FrnHA New Con. 812212036 43 (28955 Pujol St.) Section 515 Source: City of Temecula, September 1999. The Section 8 contract for one apartment complex, Temecula Villas (28837 Pujol Street), expired in June 1999. The owner has not entered into an agreement with the Temecula Redevelopment Agency to accept additional funding in exchange for preserving the affordability of the units, nor are Section 8 vouchers accepted at the complex. The owner plans on renting the units at market rate. ~lt-Risk Housing Conversion Potential Oaktree, Woodcreek, and Rancho California complexes are the only housing developments that may be at risk between July 1, 2000 and June 30, 2010. The details of each project are discussed below. Oaktree: The 40-unit Oaktree project was financed through FmHA-New Construction Section 515 loans. While this project has the potential to expire in 2004 with prepayment of the loan, the nature of the program makes it extremely unlikely that the Oaktree project will be permitted to prepay and convert to market-rate rents. To qualify for prepayment and conversion, the owner of the project must prove that the affordable housing provided by the project is not needed. Discussions with FmHA representatives indicate that few farm housing projects have ever been able to document that affordable, farm housing is no longer needed. Therefore, the affordable housing restrictions on Oaktree are expected to continue for the entire duration of the loan. Also, additional incentives are often offered to owners of affordable housing financed under the FmHA New Construction Section 515 program to encourage the continued affordability of the units. Since the Oaktree project is unlikely to convert during the Housing Element planning period due the constraints described above, preservation of this affordable housing complex is not analyzed below. Il. Needs.doc * July 2002 Page 4-21 CITY OF TEMECULA Housing Element Woodcreek: The 344-unit Woodcreek project was financed with a multi-family mortgage revenue bond. Under the bond program, 20% (71) of the project units are required to he reserved for Low Income tenants for the greater of 15 years or as long as the bond is outstanding. The Low Income use restriction on the 71 units is due to expire in March 2003. Rancho California: This 55-unit project was developed with a HUD-insured Section 221(d)4 mortgage loan. This mortgage loan maintains a market rate interest and places no deed restriction on the project to maintain the units as affordable housing. To ensure affordability of these units, HUD provided a 20-year Section 8 contract for the 55 units subsidizing the rent payments by tenants. This Section 8 contract is due to expire in March 2004. Preservation and Replacement o fAt-Risk Housing Cost Analysis Preservation of the at-risk projects can be achieved in four ways: 1) facilitate transfer of ownership of the at-risk properties to non-profit organizations; 2) purchase of affordability covenants; 3) provide rental assistance to tenants using funding sources other than Section 8; and 4) construct or purchase replacement affordable units. Transfer of Ownership: By transferring ownership of at-risk projects to non-profit housing organizations, long-term, low income use of those projects can be secured, and the project will be eligible for a greater range of government assistance programs. Of the two at-risk housing development within Temecula, transferring ownership to a non- profit is only appropriate in the case of Rancho California. Since only 20% of the Woodcreek complex is affordable to lower income households, it is not cost-effective to purchase the entire apartment complex. Table 4-16 presents the estimated market value for the Rancho California project to establish an order of magnitude for assessing preservation costs. According to development experts, current market values for the at-risk project can be estimated on the basis of the project's potential annual income, operating expenses and building condition. As shown in Table 4-16, the estimated market value of the Rancho Califomia project is $4 million. However, unless some form of mortgage assistance is available to the non-profit organizations, rental income from the lower income tenants would not likely be adequate to cover the mortgage payment, and rental subsidy would be required. ! i I I I I ! ! ! I I I i ! ! I I Il. Needs.doc ~, July 2002 Page 4-22 i CITY OF TEMECULA Housing Element I I I I I I I I I I I I ! ! I I I I Table 4-16 Value of At-Risk Housing Units Rancho California Apartments Size of UnitsNumber of Units in Project 2-Bedroom 22 3-Bedroom 22 4-Bedroom 11 Total 55 Gross Operating Income $373,065 Annual Operatin9 $37,307 Net Annual Income $335,759 Market Value $4,029,102 Market value for Rancho California Aparlments is estimated with the following assumptions: 1. Old Town Temecula Market Study- average market rent for a 2~)edmorn is $515, 2- bedrcom is $625,3-bedrcom is $695, and a 4-bedrcom is eslJmated to be 10% h~gher than a 34~droorn for an average rent of $765. 2. Vacancy Rate = 5% 3. Annual ngeraling expenses = 10% of gross revenues 4. Market Value = Annual net project income* multiplication factor. 5. Multiplication factor for buildings in good to excellent condition in 12. Purchase of Affordability Covenant: Another option to preserve the affordahility of at-risk projects is to provide an incentive package to the owners to maintain the projects as low income housing. Incentives could include writing down the interest rate on the remaining loan balance, and/or supplementing the tenant's rent payment or Section 8 subsidy amount from HUD to market levels. To purchase the affordability covenant on the at-risk projects, an incentive package should include interest subsides at or below what the property owners can obtain in the open market. To enhance the attractiveness of the incentive package, the interest subsidies may need to be combined with additional rent subsidies. Rent Subsidy: A total of 55 units in the Rancho California project currently maintain Section 8 contracts that are due to expire within the time frame of this Housing Element. Should annual renewal of project-based Section 8 contracts become unavailable in the future, tenant-based rent subsidies such as Section 8 vouchers and certificates may he used to preserve the affordability of housing. Also, should the owner of Woodcreek decide to convert the 71 units into market rate housing, Section 8, or other forms of rent subsidies may be required to assist the existing tenants. Under the HUD Section 8 program, assistance is only available to Very Low Income households (up to 50% of the County Median Family Income). Thus the discrepancy between the Fair Market Rent for a unit and the housing cost affordable to a Very Low Income household is used to estimate the amount of rent subsidy required for that unit. Table 4-17 estimates the rent subsidies required to preserve the affordability of the assisted units to Very Low Income households. Based on the estimates and assumptions shown in this table, approximately $191,664 in rent subsidies would be required annually to preserve the Rancho California units, and approximately $168,246 in annual rent subsidies would be required to preserve the Woodcreek units, for a total of $359,910. n. Needs.doc · July 2002 Page 4-23 CITY OF TEMECULA Housing Element I Table 4-17 Rent Subsidies Re~ uired Seclion 8/Subsidized At-dsk Units Rancho Califomia Weedereek 2-Bedroom 22 58 3-Bedroom 22 13 &Bedroom 11 0 Total 55 71 Total Monthly Rent Income Supported by Affordable $26,180 $31,383 Housing Cost of Very Low Income Households Total Month Rent Allows by Fair Market Rents $42,152 $45,403 Total Annual Subsidies Required $191,664 $168,246 Notes: 1. Unit mix of Woedcreek Apartment units is based, on proportions in the entire project. 2. A [wo--bedronm unit is assumed to be occupied by a three-person household, a three- bedroom unit by a four-person household, and a four-bedroom unit by a five-person household. 3. Based on 1999 Median Family Income in Riverside County, affordable monthly housing cost for a three-person Very Low Income household is $431, for a four-person household is $490, and a five-person household is $538. 4. 1999 Fair Market Rents in Riverside County is $597 for a two-bedroom unit, $829 for a three-bedroom unit, and $980 for a four-bedroom unit. Replacement Cost Analysis/Purchase of Similar Units: The cost of developing new housing depends on a variety of factors such as density, size of units, location and related land costs, and type of construction. Based on discussions with a local developer with recent experience building multi-family housing within Temecula, it would be difficult to develop multi-family rental housing for less than approximately $100,000 per trait. This cost estimate includes all costs associated with development. To replace the 126 affordable units in Rancho California and Woodcreek apartments would therefore require at least $12,600,000 ($5.5 million for Rancho Califomia and $7.1 million for Woodcreek), provided that vacant or underutilized multi-family residential sites would be available for construction of replacement housing. Instead of constructing new at-risk affordable units, similar existing units may be purchased to replace those units. Based on the value analysis for the Rancho California apartments, an existing unit would cost approximately $73,250. To replace the 126 affordable units in Rancho California and Woodcreek through the purchase of similar existing units, the total cost would be approximately $9.2 million ($4 million for Rancho California and $5.2 million for Woodcreek). Cost Comparison The cost to build new housing to replace the 126 at-risk units within the Rancho California and Woodcreek projects is high, with an estimated total cost of close to $12.6 million. This cost estimate is higher than the cost to preserve the units by transferring ownership to a non-profit (in the case of Rancho California) or purchasing 126 similar existing units, which is estimated at approximately $9.2 million. I I I ! ! I I ! I I I I I ! I I I 1I. Needs.doc · July 2002 Page 4-24 I CITY OF TEMECULA Housing Element I i I I I I I ! I I I I I ! I I I I Use of other forms of rent subsidies to replace rental assistance, such as Section g, does not ensure long-term unit affordability. The cost associated with rent subsidies is lower, requiring a total of approximately $359,910 annually. Overall, transferring project ownership to non-profit organizations combined with financing techniques to lower the mortgage payment, as well as purchase of affordability covenants, are probably the most cost-effective means to preserving the at- risk housing projects in Temecula. Il. Needs.doc · July 2002 Page 4-25 CITY OF TEMECULA Housing Element I III. CONSTRAINTS ON HOUSING PRODUCTION Market, governmental, and infrastructure factors pose constraints to the provision of adequate and affordable housing. These constraints may result in housing that is not affordable to Very Low, Low, and Moderate Income households, or may render residential construction economically infeasible for developers. A. Market Constraints 1. Land and Construction Costs A major cost associated with developing new housing is the cost of land. Most vacant residential parcels in Temecula have been subdivided, while others are contained within planned communities. In the Meadow View area, where parcels begin at ½ acre and increase in size, the average price of a vacant parcel ranges from $60,000 to over $100,000. Larger tracts of raw land are available in the surrounding sphere of influence at a lower cost per acre. However, the potential development of this raw land is constrained by the City's desire to preserve the agricultural lands, as evident in the General Plan. Another major cost associated with building a new house is the cost of building materials, which can comprise up to 50% of the sales price of a home. Construction costs for wood frame single-family construction of average to good quality range from $50 to $70 per square foot, while custom homes and units with extra amenities may mn higher. Costs for wood frame, multi-family construction average about $50 per square foot excluding parking. Both the costs of land and construction of a new house are passed on to the homebuyer. As a result, an increase in the cost of land or constmction materials will result in a higher housing price for the purchaser. 2. Availability of Mortgage and Rehabilitation Financing Under the Home Mortgage Disclosure Act (HMDA), lending institutions are required to disclose information on the disposition of loan applications. Overall, financing is generally available to homebuyers and homeowners in Temecula. As depicted in Table 4-18, in 1997 overall, 73% of the 1,031 applications submitted for conventional home purchase loans were approved (though not all applicants accepted the loan [i.e. originated the loan]), and only 12% were denied, with the remaining 14% of the applications withdrawn or closed for incompleteness. However, lower income applicants had a lower rate of approval in comparison to the higher income applicants. The disparity between income groups with the availability of funding is also apparent in the approval rate for conventional home improvement loans. Overall, home improvement loans have lower approval rates. In 1997, only 54% of the 430 applications submitted for conventional improvement loans were approved, indicating :'1 i I ! I I I ! I I I I i I I I I nl. Constraints.doc * July 2002 Page 4-26 I CITY OF TEMECULA Housing Element I i I I I I I I the continued need for City assistance in providing home improvement loans, especially for lower income applicants. Table 4-19 illustrates the disposition of govemment-backed home purchase and home improvement loans. Government-backed loans include 'those insured by the FHA, FmHA, and VA, hut do not include those provided through the Temecula Redevelopment Agency. Comparing Table 4-19 with Table 4-18 indicates that more Low and Moderate Income households in Temecula rely on government-backed loans than on conventional loans to achieve homeownership. This further substantiates the continued need for homebuying assistance in order to facilitate homeownership among Low and Moderate Income households. Few households applied for home improvement loans under either conventional or government-backed lending. This is reflective of the overall sound conditions of the City's housing stock. Nevertheless, Low and Moderate Income households seeking home improvement financing had comparative lower approval rates under both conventional and government-backed lending than Upper Income households. Locally assisted home improvement loans and grants are important to assisting the Low and Moderate Income households in making the necessary repairs. Table 4-18 Disposition of Conventional Loan Applications: 1997 Home Purchase Loans Home Improvement Loans % % Applicant Income Total % % Total % Originated/ % Other Appl'ns Approved' Denied Other Appl'ns Originated/ Approved* Denied Low Income 106 68.9% 14.1% 17.0% 34 55.9% 32.4% 11,8% (<80% MFI) Moderate Income 183 70.5% 16.4% 13.1% 108 38.0% 56.5% 5.6% (80-119% MFI) Upper Income 686 76.7% 10.8% 12,5% 288 60.1% 34.4% 5.6% (>+120% MFI) Not Available 56 51.8% 16.1% 32.1% 0 0 0 0 Total 1,031 73.4% 12.4% 14.1% 430 54.2% 39.8% 6.0% * Originated Loan is a loan that has been approved and accepted by the applicant. Source: Home Mort§age Disclosure Act (HMDA) data for 1997, Tabulated with the Centrex so.are. I ! i I Table 4-19 Disposition of Government Backed Loan Applications: 1997 Home Purchase Loans Home Improvement Loans Applicant Income Total % % % Total % % % Originated/ Originated/ Apprns Approved* Denied Other Appl'ns Approved* Denied Other Low Income 116 74.1% 12.1% 13.8% 12 0% 66.7% 33.3% (<80% MFI) Moderate Income 328 80.8% 10.7% 8.5% 58 36.2% 39.7% 24.1% (80-119% MFI} Upper Income 380 76.8% 14.2% 8.9% 101 45.5% 33,7% 20.8% (>+120% MFI) Not Available 37 59.5% 13.5% 27.0% 6 16.7% 83.3% 0% Total 861 77,2% 12.5% 10,2% 177 38.4% 39.5% 22.0% * Originated Loan is a loan that has been approved and accepted by the applicant. Source: Home Mortgage Disclosure Act (HMDA) data for 1997. Tabulated with the Centrex software. I I I I I I Ill. Constraints.doc o July 2002 Page 4-27 CITY OF TEMECULA Housing Element B. Governmental Constraints 1. Land Use Controls The Land Use Element of the Temecula General Plan and corresponding Development Code provide for a range of residential types and densities dispersed throughout the City. The current Land Use Element has designated 10,295 acres (63%) of the City's total land inventory for residential uses, including: single-family homes, multi-family units, and mobile homes. Residential densities in Temecula cover a wide spectrum, including the following categories: · Hillside Residential (HR) (0-0.1 unit/net acre) · Very Low Density Residential (VL) (0.2-0.4 unit/net acre) · Low Density Residential-1 (L-l) (0.4-1 unit/net acre) · Low Density Residential-2 (L-2) (1-2 units/net acre) · Low Medium Density Residential (LM) (3-6 units/net acre) · Medium Density Residential (M) (7-12 units/net acre) · High Density Residential (H) (13-20 units/net acre) These residential categories provide for a range of housing types to be developed in Temecula. The City has set target levels for density for the Hillside (0.1 unit/acre); Very Low (0.3 units/acre); Low (1.3 units/acre); and Low Medium (4.5 units/acre) Density Residential designations. Only projects that provide amenities or public benefits will be allowed to exceed the target level. The types of amenities or public benefits may include providing road connections, parks, or fire station. These amenities typically apply to large-scale planned development projects. The City has not set density target levels for the Medium and High Density Residential categories in order to facilitate the development of affordable housing. 2. Residential Development Standards Temecula's residential development and parking standards are summarized in Tables 4- 20 and 4-21. Residential standards have been adopted by the City to protect the safety and welfare of its residents. The Development Code and General Plan allow for modification and flexibility in the development standards through the provision of a Village Center Overlay and Planned Development Overlay. Flexibility in planning for overlay areas is allowed to promote ~ greater range of housing opportunities within the City. Diversity of housing, including affordable housing is one of the performance standards for the Village Center Overlay. The Planned Development Overlay Zoning District also encourages the provision of additional housing opportunities for the community. Additional flexibility in development standards is also provided in the Development Code through the use of variable setbacks. This flexibility allows for creative site planning, especially for irregular sites. I I I I ! ! I I I I I I I I I I I Ill. Constraints.doc * July 2002 Page 4-28 I CITY OF TEMECULA Housing Element I I I I I I I I I ! I I I I I I I I To provide for additional opportunities for affordable housing, the Development Code and General Plan also allow senior, congregate care, and affordable housing in some non- residential zoning districts. Senior housing is allowed in the Neighborhood Commercial, Community Commercial, Service Commercial, Highway/Tourist Commercial, and Professional Office zoning districts. Congregate care facilities are allowed in the Neighborhood Commercial, Community Commercial, Highway/Tourist Commercial, Service Commercial, and Professional Office zoning districts. Affordable housing projects are allowed in the Professional Office zoning district. For example, the City has recently adopted a Planned Development Overlay district for the Temecula Creek Village to provide for mixed-use commercial/residential development. Temecula Creek Village will develop 32.6 vacant acres within the Professional Office (PO) zone with 20 acres of residential and 12 acres of commercial uses. Residential uses envisioned for the Planned Development Overlay district include medium and high density multi-family uses. Ill. Constraints.doc o July 2002 Page 4-29 CITY OF TEMECULA Housing Element ! Table 4-20 Residential Development Standards HR VI. L-1 L-2 LM M H Minimum Net Lot Area (square feet) .... 7,200 7,200 7,200 Miblmum Average Net Lot Ama per Dwelling Unit 10 acren 2.5 acres 1.0 acre 0.5 acre -- -- -- Maximum Dwelling Units Per Ao'e~ ..... 12.0 20.0 LOT DIMENSIONS Minimum Lot Frontage at Front Property Line 50 fL 40 ft. 40 ft. 30 ft. 30 ft. 30 ft. 30 fL Minimum Lot Frentage for a Flag Lot at Front Properly Une 40fL 30fl. 30ft. 25ft. 200. 20ft. 200. Minimum Width at Required Front Setback Ama 100 ft. 100 ft. 70ft. 50ft. 50ft. 40ft. 30ft. Minimum Average Width 100 ft. 80 ft. 70 ft. 60 ft. 50 ft. 50 ft. 50 ft. Minimum Lot Depth 150fL 120 ft. 100 ft. 90fL 80fL 100fL 100 ft. iETBACKS Minimum Frent Yard2 40ft. 25ft. 25fL 25ft.2 20fL2 20ft.2 20fL~ Minimum Corner Side Yard 40ft. 15ft. 15fl. 15tt. 15fL 15ft. 15ft. MinimumlnteriorSideYard3 10fl. 10ft. 10fL 10fl Variable3 Variable] Variable3 Minimum Rear Yard 20ft. 20ft. 20fL 20ft. 20fl. 20fL 20ft. Maximum Height 35~. 35ft. 35~. 35~. 35~. 40ft. 50fL Maximum % of Lot Coverage 10% 20% 25Yo 25'/, 35% 35% 30% Open Space Required 90 % 70 % 60% 60% 25 % 25% 30% Private Open Space/Per Unit NA NA NA NA NA 200 150 Notes: 1. Affordable housing and congregate care facilities may exceed the stated densities pursuant lo the provisions of Sectior 17.06.050. H. 2. Variable front yard setbacks: In order to allow for a more interesting visual image and more flexible site planning variable setback.~ may be permitted in the [2, LM, M and H districts. Front yard setbacks shall have an average of at least twenty feet. Garages wttl' entrances not fablag the front yard area may be setback a minimum of ten feet. Other podions of a structure may have a front yarc setback of a minimum of ten feet; however, the average setback of twenty feet shall be maintained. 3. Variable side yard setbacks: In the LM zoning disthct, the combined side yard setback for both sides must equal at least fifteen feel with one side having at least ten feet to provide potential vehicular access to the rear of the prepeffty and shall be located on the same side as the driveway. In the M and H zoning disthcts, vadable side yard setbacks may bo permitted provided the sum of the side yarc setbacks is not less than ten feet and the distance between adjacent structures is not less than ten feet. This permits a zero lot line arrangement with a zero setback on one side yard and ten feet on the opposite site yard. Source: The City of Temecula Development Code. I I I I I I i I ! I I I I I I I llI. Constraints.doc · July 2002 Page 4-30 I CITY OF TEMECULA Housing Element I Table 4-21 Parking Space Requirements Land Use Required Parkin9 Spaces Single-family Unit 2 enclosed spaces Duplex, Triplex 2 covered spaces/units, plus 1 guest space/4 units Multi-family Units (12 units or less) - 3 or fewer· 2-5 units: 2 covered spaces/units, plus 2 guest spaces bedrooms · 6-12 units: 2 covered spaces/unit, plus 3 guest spaces Multi-family Units (13 or more units)- 3 or fewer · 1 covered space and Y, uncovered space for each 1 -bedroom unit; bedrooms · 1 covered and 1 uncovered space for each 2-bedroom unit; · 2 covered spaces and ~ uncovered space for each 3-bedrcom (or more) unit; plus 1 guest space/6 units, with a minimum of 4 guest spaces. Mobilehome Park 1 covered space/treiler site, plus 1 guest spece/2 trailer sites Second Unit · 1 covered space for each 2-bedroom (or smaller) unit; · 2 covered spaces for each 3-bedroom (or larger) unit. Granny Flat 1 uncovered space/unit Senior Citizens Housing Complex/Congregate Y2 covered space/unit, plus I uncovered guest space per 5 units Care Source: City of Temecula Development Code I I I I I I I I I I ! I I I I I I 3. Provisions for a Variety of Housing Housing Element law specifies that jurisdictions must identify adequate sites to be made available through appropriate zoning and development standards to encourage the development of a variety of types of housing for all income levels, including mobile homes, congregate care facilities, senior housing, emergency shelters, and transitional housing. The following paragraphs describe the City's provision for these types of housing. Mobile Homes/Manufactured Housing: Temecula allows for the provision of manufactured housing in all of its residential zoning districts. Mobile home parks are allowed with a conditional use permit in all of the residential zoning districts. Manufactured housing must be certified according to the National Mobile Home Construction and Safety Standards Act of 1974 and conform to all other development and use requirements applicable to the primary units in the zoning district. The units must stand on a permanent foundation and the materials used for the siding must be approved by the Planning Director. Senior Housing/Affordable Housing: Senior and affordable housing are permitted in the High, Medium, and Low Medium Density Residential zoning districts, with approval ora development plan. The maximum density allowed for senior housing that complies with the City's affordable housing provisions, including the density bonus, is: 30 units/acre for High Density Residential, 20 units/acre for Medium Density Residential, and 8 units/acre for Low Medium Density Residential. For the approved specific plans, the maximum density bonus cannot exceed 50% of the target density in the planning area. Senior housing is also allowed in the Neighborhood Commercial, Community Commercial, Service Commercial, Highway/Tourist Commercial, and Professional 111. Constraints.doc o July 2002 Page 4-31 CITY OF TEMECULA Housing Element Office zoning districts. Senior housing constructed in the Neighborhood Commercial zone will be developed consistent with the development and performance standards allowed in the Medium Density Residential zoning district. For the Community Commercial, Service Commercial, Highway/Tourist Commercial, and Professional Office zoning districts, senior housing will be developed consistent with the development and performance standards allowed for the High Density Residential zoning district. Affordable housing developments are entitled to receive at least a density bonus of 25% in each residential zoning district. The maximum densities for affordable housing projects, including the density bonus, are: 30 units/acre for High Density Residential, 18 units/acre for Medium Density Residential, and 8 units/acre for Low Medium Density Residential development. For the approved specific plans, the maximum density, including the density bonus, is not allowed to exceed 50°/6 of the target density in the planning area, as discussed above. Affordable housing projects are also allowed in the Professional Office zoning district up to 30 units/acre with a conditional use permit. Affordable housing projects, including affordable senior projects may also be granted at least one development concession by the City as an incentive for the provision of affordable housing. The potential concessions include: · An increase in the amount of required lot coverage; · A modification to the setback or required yard provisions; · An increase in the maximum allowable building height; · A reduction in the amount of required on-site parking; · A reduction in the amount of on-site landscaping, except that no reduction in on-site recreational amenities may be approved unless the affordable housing is in close proximity with easy access to a public park with recreational amenities; · A reduction in the minimum lot area; or · Approval of an affordable housing project in the Professional Office zone with the approval of a conditional use permit. Congregate Care: Congregate care facilities are not limited specifically to density requirements as long as all of the development standards for the zoning district are met. Congregate care facilities are allowed in the Low-2 Density Residential, Low Medium Density Residential, Medium Density Residential, High Density Residential, Neighborhood Commercial, Community Commercial, Highway/Tourist Commercial, Service Commercial, and Professional Office zoning districts. Second Units: The City of Temecula allows second units in all of the residential districts where a detached single-family unit exists and the owner occupies either the primary or secondary unit. Second units cannot be sold, but may be rented. The second unit must be compatible with the design of the primary dwelling unit and meet the size and parking requirements identified in the Development Code. I I I I I I I I I I I ! I I I I I 111. Constraints.doc * July 2002 Page 4-32 I I I i I I I I I I I I I I I I I I I I CITY OF TEMECULA Housing Element Emergency Shelters/Transitional Housing: The City facilitates the development of emergency shelters and transitional housing by permitting the development of such facilities in the Medium Density and High Density Residential districts by right. These uses are also permitted in other residential districts with a conditional use permit. Emergency shelters are also permitted with a conditional use permit in the Neighborhood Commercial, Community Commercial, Highway/Tourist Commercial, Service Commercial, Professional Office, Business Park, and Light Industrial zoning districts. Currently, Temecula has two group homes for teenagers with a total capacity of 18 persons. In addition, two residential facilities in the City offer housing for up to 12 developmentally disabled persons. 4. Development and Planning Fees The cost of development is a constraint to the implementation of affordable housing projects. Typically, the cost of developing raw land is significantly increased by the various regulations and fees local governments impose on developers. The City of Temecula charges various fees and assessments to cover the cost of processing permits and providing certain services and utilities. Table 4-22 summarizes that City's planning fee requirements for 'residential development, while Table 4-23 depicts the City's development fees for residential development. Comparing the cost of one jurisdiction's development and planning fees to another is difficult since each jurisdiction calculates and applies its fee schedule in its own unique way. While no recent studies available to the general public have been completed in Riverside County to compare the fees charged by various jurisdictions, a 1991 County of Riverside Administrative Office (CAO) study compared the cost of developing a 50- unit subdivision in various communities. In this study, Temecula ranked in the top three jurisdictions for development fees charged. I11. Constraints.doc · July 2002 Page 4~33 CITY OF TEMECULA Housing Element Table 4-22 Planning Fee Schedule City of Temecula Project Type [ City of Temacula Fee I Depement of Environmental I · Health Fee Planning and Zoning Conditional Use Permit - New Building ~,z3,4 $5,837 $234 Conditional Use Permit - Existing Building~ $888 $234 Development Agreement $4,550 N/A Development Plan - Less than 10,000 sf (Administrative) $190 N/N Development Plan - Less than 10,000 sf ~,~.4 $3,540 $136 Development Plan - Over 10,000 sf 1,2,3,4 $5,888 $136 General Plan Amendment~,z3 $5,587 $59 Single Family Residence and Additions $30 N/A Variance~ $1,954 $120 Zoning Amendment (Text Changes, Map Changes) ~,5 $3,617 $61 Zoning Amendment (Specific Plan) ~,z5 $15,578 $197 Subdivisions Certificate of Land Division Compliance (fee per parcel) $1,093 $138 Certificate of Land Division Compliance w/Waiver of Final Parcel $837 N/A Map (fee per parcel) Lot Line Adjustment $834 $72 Merger of Continuous Parcel $714 N/A Minor Change (Parcel Map) $729 N/A Minor Change (Tract Map) $741 N/A Parcel Map - Tentative (Residential) w/Waiver of Final Map~,2,3,5 $3,735 $389 Parcel Map- Tentative (Residential) w/o Waiver of Final Map1,z,3,5 $3,346 $675 Parcel Map- Vesting Tentative Map~,z3,5 $7,734 $424 Tract Map- Multi-Family-Tentative Statutory Condo Subdivision $7,085 $528 Map Filing1,2,3,5 Tract Map- Multi-Family-Revisbd Statutory Condo Subdivision Map $6,007 $203 Filingt,z3,5 Tract Map- Single Family Residential Tract (Sewers) ~2.3,5 $6,000 $528 Tract Map- Single Family Residential Tract (Sub.Su r~ace Disposal) $6,000 $424 Tract Map- Single Family Residential Tract (Revised Tentative $3,861 $528 Subdivision Map) Tract Map Besting Tentative Single Family Residential Tract1,z3.5 Miscellaneous Cha~es CEQA (Draft EIR) ~ I $7,120 $395 Old Town Architectural ReviewI $20 N/A 1. Add CEOA Fee of $613+$5/gross acre (if required) 2. Add UC Regents Fee of $25 (if required) - not applicable to duplicate applications 3. Add Traffic Study Fee of $780 (if required) 4. Add DRC Landscape Fee of $200 5. Add per lot and per gross acre fee (depends on specific project) Source: Temecula Abddged Application Fee Schedule (June 4,1998) I I I ! I I I I I I IlL Constraints.doc o July 2002 Page 4-34 I I CITY OF TEMECULA Housing Element I i I I I I I I I I I I I I I I I Table 4-23 Development Fees City of Temecula Development Fee Land Use Fee/Unit Street System Improvements Residential Attached $517 Residential Detached $737 Traffic Signals and Traffic Control Systems Residential Attached $78 Residential Detached $110 Corporate Facilities Residential Attached $119 Residentiar Detached $224 Fire Protection Facilities Residential Attached $42 Residential Detached $56 Parks and Recreational Improvements Residential Attached $1,222 Residential Detached $1,629 Libraties Residential Attached $158 Residential Detached $210 Total Residential Attached $2,136 Residential Detached $2,966 Source: City of Temecula, 1999 5. Building Codes and Enforcement The City of Temecula has adopted the Uniform Building Code (UBC) and has not made any additional modifications to the UBC. This Code is considered to be the minimum necessary to protect the public health, safety, and welfare. The City is responsible for enforcement of the UBC. Only 1% of the housing stock in Temecula is older than 30 years. Overall, the housing stock is in excellent condition. The City's Code Enforcement program is complaint- based, and will not constrain the development or preservation of housing. When housing code violations are cited for units occupied by low and moderate income households, the Code Enforcement staff routinely offers information regarding the City's rehabilitation programs. 6. Local Processing and Permit The evaluation and review process required by City procedures contributes to the cost of housing in that the holding costs incurred by developers during the review period are ultimately manifested in the unit's selling price. The administrative approval process (which includes development projects that are less than 10,000 square feetin building floor area and are exempt from the California Environmental Quality Act [CEQA]) is administered by the Community Development Department and other involved agencies, and does not require review by the City Council nor Planning Commission. The average time for administrative approval is five weeks. Once approval is given, the property owner must submit the approved plans to the Community Development and Public Works Departments to obtain the required permits. Discretionary projects require review and approval by City staff, affected agencies, City Council, and Planning Commission. The average period until a discretionary project I 1[1. Constraints.doc · July 2002 Page 4-35 CITY OF TEMECULA Housing Element reaches the public hearing stage is 11 weeks. An additional five weeks may be required after the public heating until the final approval with associated conditions is given. This processing time frame is not considered excessive. The City has not adopted any special design or environmental review processes that would add additional time to the processing period. In addition, since much of the remaining vacant residential land is contained in specific plan areas, the environmental review required under CEQA has been completed and the development standards required have been identified, expediting the approval process of projects within the specific plan area. C. State Tax Policies and Regulations 1. Article 34 of the California Constitution Article 34 was enacted in 1950. It requires that low rent housing projects developed, constructed, or acquired in any manner by any State or public agency, including cities, receive voter approval through the referendum process. The residents of Temecula have not passed a referendum to allow the City to develop, construct, or acquire affordable housing. While Califomia Health and Safety Code further clarifies the scope and applicability of Article 34 to exclude housing projects that have deed-restriction on less than 49% of the units or rehabilitation/reconstruction of housing projects that are currently deed- restricted or occupied by lower income persons, Article 34 still constitutes an obstacle for local governments to be directly involved in production of long-term affordable housing. 2. Environmental Protection State regulations require environmental review of proposed discretionary projects (e.g., subdivision maps, use permits, etc.). Costs resulting from fees charged by local government and private consultants needed to complete the environmental analysis, and from delays caused by the mandated public review periods, are also added to the cost of housing and passed on to the consumer. However, the presence of these regulations helps preserve the environment and ensure environmental safety to Temecula's residents. In addition, much of the remaining vacant residential land is located within approved specific plan areas for which the required environmental review has already been completed. 11I. Constraints.doc · July 2002 Page 4-36 I I CITY OF TEMECULA Housing Element I i I I I I I I I I I i I I I I I I D. Infrastructure Constraints Another factor adding to the cost of new construction is the cost of providing adequate infrastructure (major and local streets; curbs, gutters, and sidewalks; water and sewer lines; and street lighting) which is required to be built or installed in new development. In most cases, these improvements are dedicated to the City, which is then responsible for their maintenance. The cost of these facilities is bo[ne by developers, and is added to the cost of new housing units, and is eventually passed on to the homebuyer or property owner. In addition, two areas of the City, designated for residential uses, are partially developed and do not have sewer service. Development of this land is limited to Very Low Density Residential uses. The majority of the remainder of future residential development within the City will occur in master planned communities, or on sites adjacent to existing infrastructure. As a result, residential development will not be constrained by the lack of sufficient infrastructure in the remainder of the City. The Rancho Califomia Water District (RCWD) is the retail supplier of potable water to the City. According to the Growth Management/Public Facilities Element of the General Plan, the RCWD has adequate water supply to meet current demand and is investigating a number of sources to meet long-range demands. Upgrading existing wells, adding new wells, implementing a water recharge program, and increasing the use of reclaimed water are among the major strategies devised by the RCWD. Wastewater facilities in Temecula are provided by the Eastern Municipal Water District (EMWD). The EMWD has adequate capacity to meet current treatment demand. A planned expansion to the Rancho California Treatment Plant by 2003 will further increase the District's wastewater treatment by 10 million gallons per day. By closely working with the RCWD and EMWD in developing supply options; conservation techniques, including the use of reclaimed water; and development monitoring systems, the City can ensure that development does not outpace the long-term availability of water and adequacy of wastewater treatment capacity. E. Environmental Constraints The City is impacted by various environmental hazards that include active fault traces, liquefaction and subsidence, steep slopes, and flooding. These natural hazards form environmental constraints to residential development by threatening the public safety. To protect the health, safety, and welfare of residents in Temecula, the City has adopted regulations that limit development within areas of high risk, and/or require design standards that can withstand natural hazards. Flood Plain (FP) Overlay District: The City has applied a Flood Plain Overlay District to portions of the City that are threatened by flooding hazards. The overlay district includes design requirements that must be met for new construction and substantial improvement of Ill. Constraints.doc * July 2002 Page 4-37 CITY OF TEMECULA Housing Element I structures within the district. These design standards have been adopted to reduce the flooding hazards threatening people and structures within the overlay district. The Flood Plain Overlay District affects primarily the Hillside and Business Park areas at the western edge of the City. Residential development in the hillside area is already constrained to one unit per ten acres to reflect the various environmental hazards and the high costs associated with the mitigation techniques. A handful of vacant residential sites at the southern edge of the City are also affected by flood hazards. Most of these sites are infill vacant lots designated for Very Low Density Residential (0.2 to 0.4 unit per acre). One vacant property zoned for Medium Density Residential (7 to 12 traits per acre) is located within the Flood Plain Overlay District. Development on this property must comply with specific structural design standards that raise the cost of construction. However, this property represents only a fraction of the City's vacant Medium Density Residential land. The environmental constraints and the associated cost factor impacting this property will not compromise the City's ability to provide adequate sites to accommodate its Regional Housing Needs Assessment (RHNA). AIquist Priolo: Temecula is located within a highly active seismic region. Three Alquist- Priolo Special Studies Zones are located in Temecula - Wildomar, Willard, and Wolf Valley. These zones have been delineated by the State Geologist and encompass the area on either side of potentially or recentl~ active fault traces where the potential for surface- rupture exists. The Wildomar Fault is the predominant fault in the City. This fault trends in a northwest direction and transects the length of the City. The Willard fault is located southwest of the Wildomar fault zone. South of the Willard fault is the Wolf Valley fault zone. Within an Alquist-Priolo Earthquake Fault zone, habitable structures must maintain a minimum 50-foot setback distance from the fault trace per State law. The presence of three Alquist-Priolo zones in Tcmecula limit the amount of land and intensity for the development of residential uses. However, only a few vacant residential sites designated for Very Low Density Residential use are impacted by these Alquist-Priolo zones. I I I I I I I i I I I I I I I I I I11. Constraints.doc * July 2002 Page 4-38 I CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I I IV. HOUSING RESOURCES A. Sites for Housing Development 1. Vacant Sites An important component of the Temecula Housing Element is the identification of sites for future housing development, and evaluation of the adequacy of this site inventory in accommodating the City's share of regional housing growth as determined by the Western Riverside Council of Governments (WRCOG). As part of this Housing Element update, the City conducted a parcel-by-parcel vacant residential site analysis, for land outside of approved specific plans, based on data obtained from the City's geographic information system (GIS). Table 4-24 quantifies the number and type of housing units that could be accommodated on the City's vacant residential sites located outside of approved specific plan areas. The City also conducted a records search and visual survey using aerial photos and site visits to estimate the remaining residential development capacity by number and type of housing within the approved specific plans. Table 4-25 summarizes the housing development potential remaining in the specific plan areas. Table 4-24 Residential Development Potential of Vacant Land Outside Specific Plan Areas Vacant Net Dwelling General Plan Designations Density Range Target Density Acreage Units Hillside 0~.1 DU/AC 0.1 DU/AC 47 5 Very Low 0.2~.4 DU/AC 0.3 DU/AC 1,089 327 Low 0.5-2 DU/AC 1.3 DU/AC 218 283 Low Medium 3~6 DU/AC 4.5 DU/AC 539 2,426 Medium 7-12 DU/AC 12 DU/AC" 171'* 2,004'* High 13-20 DU/AC 20 DU/AC* 48** 1,029" Total 2,112 6,074 * The City of Temecula allows the developroent of Medium and High Density residential land at the maximum density. ** Nine parcels, a total of approximately 5.33 acres of land (1.67 acres Medium Density and 3.71 acres High Density), acquired or under contract by the Redevelopment Agency is included. Developroent of these parcels will produce approximately 89 units affordable lo Low and Very Low Inceroe households. Source: City of Temecula, September 1999. IV. Housing Resources.doc * July 2002 Page 4-39 CITY OF TEMECULA Housing Element Table 4-25 Remainin ; Approved Residential Development for Existing Specific Plans Low Medium/ Medium High Very High Spedfic Plan/Land Low Density Medium Density Density High Density2 Density2 Total Use Designations~ (.4-2 DU/AC) (2-5 DU/AC) (5~ DU/AC) (8-14 DU/AC) (14-20 DU/AC) Units Campos Verdes 16 226 0 0 0 242 Margarita Village 19 351 764 175 0 1,309 Paloma Del Sol 0 917 941 0 590 2,448 Rancho Highlands 0 0 0 0 383 383 Har,,eston 0 0 0 0 3003 300 Total 35 1,494 1,705 175 1,273 4,682 ~ Land use categories for specific plans vary from those used in the Development Code. 2 The anticipated density in adopted spedfic plans, except for the Westside Specific Plan, is 11.6 units/acre for High Density Residential and 15.8-18.2 units/acre for Very High Density Residential, The aatidpated density in a specific plan area refem only to an overall average density across the spedflc plan when a range of housing types is provided within a residential category. It does not prevent individual projects from achieving the maximum density permitted. 3 The Harveston Specific Plan allows 13 to 20 units/acre. * The Old Town Spec~c Plan is a redevelopment plan for the Old Town District and does not identify a specific number of housing units that will be built. Source: City of Temecula, September 1999 Three specific plans have remaining potential for Very High Density residential development - Paloma Del Sol, Rancho Highlands, and Harveston. Paloma Del Sol is under active construction. The City Council is considering removing certain conditions for approval to facilitate the development of high density housing in this specific plan area. Harveston is currently being graded for construction. This specific plan has a remaining capacity to develop approximately 300 units at Very High Density. Rancho Highlands is approaching buildout with the exception of the Very High Density area. Infrastructure is already in place within the Rancho Highlands Specific Plan area. The Temecula Development Code allows for an increase in density in the High, Medium, and Low Medium residential designations if the development is senior housing, affordable housing or a congregate care facility. Densities for senior housing may be increased in High Density to 30 units/acre, in Medium Density to 20 units/acre, and in Low Medium Density to 8 units/acre. Density bonuses of at least 25% may also be granted for affordable housing projects, potentially increasing the maximum density, including density bonus, to 30 units/acre in High Density, 18 units/acre in Medium Density, and 8 units/acre in Low Medium Density. The density bonuses offered by the City exceed the State density bonus requirements. Density bonuses may also be granted to specific plan areas, as long as the maximum density bonus does not exceed 50% of the target density in such areas. For example, in the Paloma del Sol Specific Plan area, the target density for Very High density is 16.2 units per acre, with a maximum range of 20 units per acre. An affordable housing project can potentially receive a maximum density bonus of 8.1 units per acre, resulting in a maximum density of 28.1 units per acre. In addition, the City offers flexibility on standards for front and rear yard setbacks, building height, lot coverage, open space requirements, parking requirements, and lot I I I I I I I I I i I I I I I I IV. Housing Resources.doc * July 2002 Page 4-40 I I CITY OF TEMECULA Housing Element I i I I I I I I I I I I I I I I I size. The approval authority for the project may approve any combination of concessions to the extent needed to facilitate the development of affordable housing. Overall, the vacant site inventory yields an estimated development capacity of 10,758 units as of September 1999. The abundance of less expensive land in Riverside County has allowed for the development of housing that sells for less than housing in Orange, Los Angeles, and San Diego Counties. 2. Targeted Sites Within the Old Town Specific Plan area, the Temecula Redevelopment Agency has identified several sites with the potential for residential redevelopment. Currently, the Redevelopment Agency has secured site control of three parcels and is securing site control of six additional sites through acquisition and tax default, totaling 5.33 acres. While the scope of housing development to occur on all of these sites has not been, determined, given the Agency involvement, some form of affordable housing development can be expected. Based on the allowable density, an estimated 89 houses affordable to lower income households can be constructed. The allowable density may be increased if density bonuses are utilized. 3. Mixed Use Development As discussed in the Constraints section of this Housing Element, the Temecula Development Code and General Plan also allow housing in some non-residential zoning districts. The Cits; has recently adopted a Planned Development Overlay district for the Temecula Creek Village to provide for mixed-use commercial/residential development. Temecula Creek Village will develop 32.6 vacant acres within the Professional Office (PO) zone with 20 acres of residential and 12 acres of commercial uses. A key component of this project is the provision of a high density residential project, with integrated commemial development in the Professional Office areas.--The 20 acres of residential use have not been included in the City's residential sites inventory. The City is in the process of updating its General Plan. As part of the update, the City has identified four additional areas with mixed-use opportunities. These areas, located within the City boundary and generally surrounding the 1-15 corridor, total 448 acres and are characterized either by aging commercial centers, traditional commercial development, or vacant/under-utilized land. Specifically, in the area south of Old Town, many lots are currently vacant and present great opportunities for mixed use development. Such muse has become popular among developers and residents alike in recent years. Currently, a mixed-use project has been proposed in Village of the Old Town, immediately outside one of the identified mixed-use overlay areas. The project proposes a total of 1,631 dwelling units at various densities. The project proposes to create 1,360 high density multirfamily at 35 to 40 units per acre. Building heights proposed range from three to four stories. The City is in the process of negotiating with the project developer to include at least 10% affordable units (60% lower income and 40% moderate income) in the proposal. IV. Housing Resources.doc * July 2002 Page 4-41 I CITY OF TEMECULA Housing Element The types of mixed use envisioned for the mixed-use overlay areas are consistent with the village center concept. In some cases, residential units would be added within existing shopping centers and districts. In other cases, existing developments would be replaced with new mixed-use projects. Both multi-family rental apartments and condominiums/townhomes are envisioned. While mixed use will be permitted by right in the 448 acres identified with mixed use potential, 40% of the properties are assumed to be developed with residential uses. The maximum residential density for mixed-use development is up to 30 units per acre, with the potential to accommodate between 2,100 and 3,500 traits depending on the areas to be included. To facilitate mixed-use development, the City will consider providing flexible development standards such as increased height limit and shared parking opportunities. Upon completion of the General Plan, the City will revise the Zoning Ordinance to establish specific use, height, bulk, parking, landscaping, and other guidelines for these areas that would be appropriate for mixed-use development. 4. Second Units In addition to development on vacant land, the City recognizes the potential for additional new development of affordable housing in the form of second units. The City has incorporated development standards for second units into its Development Code. The Code allows for second units in all residential zoning districts where there is an existing owner-occupied single-family detached dwelling unit if the following conditions are met: ,, The unit may be rented, but not sold; · An attached second unit's floor area is no more than 400 square feet, and does not exceed 30% of the floor area of the primary residential unit; · A detached second unit has a floor area between 400 and 1,200 square feet; · The application for the second unit is signed by the owner of the parcel and primary residential dwelling anit; · The design of the second unit is compatible with the primary dwelling unit and the surrounding neighborhood; and · There is one covered parking space for each two-bedroom (or smaller) second unit or two covered parking spaces for each three-bedroom (or larger) second unit. I I I I I I I I I I I I I I I I I IV. Housing Resources.doc · July 2002 Page 4-42 I CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I I o Residential Development Potential Compared with Temecula's Regional Housing Needs The WRCOG has adopted a Regional Housing Needs Assessment (RHNA) for its member cities. For Temecula, WRCOG has established the City's share of regional housing needs as 7,798 additional units for the period of January 1, 1998 to June 30, 2005, as of October 2000. Table 4-26 shows the breakdown of these 7,798 dwelling units into income categories. Housing Units Constructed: Housing units constructed and issued certificates of occupancy between January 1, 1998 and June 30, 2000 can also be counted toward fulfilling the RHNA for this Housing Element cycle. According to City records, a total of 1,408 new single-family dwelling units and 834 multi-family dwelling units have been approved, issued building permits, or constructed since January 1, 1998, as of July 1999. Of these newly approved or constructed housing units, 38 are part of the Mission Village Apartments affordable housing development, which is located on land acquired by the Redevelopment Agency. Half(19 units) of these 38 units are affordable to Very Low Income households, and the remainder (19 units) are affordable to Low Income households. Two senior apartment projects, at densities of 30 units per acre, have been approved for a total of 385 units. These senior units are larger than the average senior unit and include additional amenities; the actual rent will be higher than typical senior housing affordable to Very Low Income seniors. These 385 units are anticipated to be affordable to Low Income senior households. Based on the housing cost and · affordability analysis (Tables 4-13 and 4-14) contained in Section II of this Housing Element, the remaining 411 newly constructed multi-family units are affordable to Moderate Income households. Of the 1,408 single-family housing units, 189 units were developed at densities less than eight units/acre, and as such are affordable only to Upper Income households. Given that three-bedroom homes were the most typical home sales in 1999 and had a median price of $153,000, conservatively one quarter of the remaining 1,219 single- family homes is expected to be affordable to Moderate Income households. This assumption is reasonable given that several new subdivision developments in Temecula are currently selling at prices starting at high $140,000 to low $170,000. These include The Villas (two- and three-bedroom homes) and the Bungalows (three- to five-bedroom homes). According to the Home Mortgage Disclosure Act (HMDA) data, between 1998 and 1999, 67 very low income households, 308 low income households, and 1,063 moderate income households purchased homes in Temecula. Lower and moderate income households constituted 33% of all homebuyers in the City during those two years. Among these 1,438 lower and moderate income households, 636 (44%) received government-backed loans from the FHA that offer reduced interest rates and downpayment requirements. In addition, the City's First-Time Homebuyer Program offers downpayment assistance to households with incomes not exceeding the area median income. The Mortgage Credit Certificate and Employee Relocation programs IV. Housing Resources. doc * July 2002 Page 4-43 CITY OF TEMECULA Housing Element I also provide downpayment assistance to households with incomes not exceeding 120% of the area median income. Remaining RHNA: The remainder of the newly constructed single-family houses is assumed to be affordable to Upper Income households. Of the remaining 5,556 RHNA units, 2,994 will need to be affordable to Very Low, Low, and Moderate Income households. Table 4-26 presents the City's RHNA as determined by WRCOG, the affordability level of housing units constructed since January 1998, and the remaining RHNA for the City. Table 4-26 Regional Housing Growth Need by Income Group Housing Units e;*~ ~,,~^~, Total RHNA Constructed/Approved RHNA Feasible Units Inceme Group (11111998-6i3012005) (11111998~13011999) Remainin9 r-~.~,,, VeP/Low Income 1,403 19 1,384 2,304 Low Income 1,014 404 610 Moderate income 1,716 716 1,000 4,605 Upper income 3,665 1,103 2,562 3,~d9 Total 7,798 2,242 5,556 10,758 Source: WRCOG, June1999; City of Temecula, July 1999. Summary of Residential Development Potential: The City's site inventory demonstrates the availability of adequate sites to address the projected housing growth needs. Table 4-27 summarizes the City's residential development potential_. However, the difficulty of providing affordable housing is generally acknowledged due to the tight housing market in Southern California. The site inventory indicates a capacity of 1,029 units on properties outside of a specific plan area and 1,273 units within specific plan areas with High Density and Very High Density zoning. Additional capacity is also available through target sites and mixed-use development_. These zoning designations will facilitate the development of affordable housing, particularly with the use of public assistance, such as redevelopment housing set-aside funds, low income housing tax credits, and Section 8 rental assistance. The Redevelopment Agency is actively pursuing affordable housing development with redevelopmer/t housing set- aside funds as mandated by state law. One recent Redevelopment Agency project, Mission Village, was developed at a density of approximately 20 units to the acre and the units are affordable to Very Low and Low Income households. The City has set target densities for the various residential designations: Hillside Residential (0.1 unit/acre); Very Low Density Residential (0.3 units/acre); Low Density Residential (1.3 units/acre); and Low Medium Density Residential (4.5 units/acre). Only projects that provide amenities or public benefits will be allowed to exceed the target level. However, to facilitate affordable housing development, the City has not set target density levels for the Medium and High Density Residential categories. As indicated in Table 4-24, development in the City's High Density zone is permitted to occur at densities of 20 units/acre, which can be increased to 30 units/acre with a density bonus, potentially creating housing affordable to Low and Very Low Income I I I I I I I I I I I I I I I I I IV. Housing Resources.doc o July 2002 Page 4-44 I CITY OF TEMECULA Housing Element I I i I I I I I I I I I I I I I I i households. For Very High Density development within specific plan areas, the anticipated density is 15.8 to 16.2 units per acre (Table 4-25). However, the anticipated density refers only to an overall average density across the specific plan when a range of housing types is provided within a residential category. It does not prevent individual projects fi:om achieving the maximum density permitted. Density bonuses for senior and affordable housing may also be permitted within approved specific plan areas as long as the maximum density bonus does not exceed 50% of the target density in such areas. Past multi-family developments in the City have realized a range of densities, averaging to about 16 units per acre with some projects exceeding 20 units per acre. According to a major residential developer in the Inland Empire, development of housing affordable to lower income households in most communities in California requires some form of subsidies, such as land writedowns, construction financing, fee waiver/reimbursement, and/or provision of off-site improvements. The issue is whether the subsidies required would be so high that render affordable housing development financial infeasible. Based on past projects, the Temecula Redevelopment Agency estimates an average subsidy of about $18,000 to $24,000 per unit to develop housing affordable for lower income households. This level of gap financing required in Temecula is consistent with, or less than, that needed in other communities based on a review of affordability gap analyses contained in several inclusionary in-lieu fee studies. Therefore, the $18,000 to $24,000 per unit subsidy to develop affordable housing for lower income households is considered financially feasible. As part of this Housing Element update, the City has included several programs/actions to facilitate affordable housing development. Program 4 (Land Assemblage and Affordable Housing Development) acquires land, which is then provided to affordable housing developers for the development of housing affordable to lower income households. Program 9 (Development Fee Reimbursement) offers reimbursement of development fees paid by the developers of affordable and senior housing. Program 11 (Redevelopment Set-Aside) identifies the development of multi-family affordable housing and acquisition of land for the development of low and moderate income housing as Priority I projects for the use of set-aside funds. Affordable Housing Projects in the Pipeline: Currently, the Agency is involved in the development of three affordable housing projects, including: · A single-family development with 20 to 25 units and affordable to households with income up to 120% of the County MFI · A 70-unit condominium project affordable to households with incomes between 80% and 100% of the County MFI · A 96-unit senior housing project affordable to seniors with incomes between 50% and 80% of the County MFI. IV. Housing Resources.doc * July 2002 Page 4-45 CITY OF TEMECULA Housing Element Table 4-27 Summary of Residential Development Potential GP Maximum Maximum Income Opportunity Areas Designation Density Acres Unit Potential Lower Income Outside Specific Plan Areas High 20 du/ac 48 1,029 Within Specific Plan Areas Very High 20 du/ac --- 1,273 Target Sites High 20 du/ac 5.33 89 Mixed-Use (Village of Old Town) MU 35 - 40 du/ac --- 82 Total 2,473 Moderate Income Outside Specific Plan Areas Medium 12 du~ac 171 2,004 Within Specific Plan Areas High Density 14 duJac --- 175 Mixed-Use (Village of Old Town) MU 35-40 du/ac --- 54 Total 2,233 Upper Income Outside Specific Plan Areas Hillside 0.1 - 4.5 1,893 3,041 through Low du/ac Medium Within Specific Plan Area Low through 0.4 - 8.0 --- 3,234 Medium High du/ac Mixed-Use (Village of Old Town) MU various --- 1,495 Total 7,770 I I i I I I I Note: Development potential in this table does not include the mixed use areas to be considered in the General Plan update. I i I I I I I I I IV. Housing Resources.doc · July 2002 Page 446 I CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I I g$ Financial Resources Redevelopment Set-Aside Fund State Community Redevelopment Law (CRL) provides the mechanism whereby cities and counties within the state can, through adoption of an ordinance, establish a redevelopment agency. The Agency's primary purpose is to provide the legal and financial mechanism necessary to address blighting conditions in the community through the formation of a redevelopment project area(s). Of the various means permitted under CRL for financing redevelopment implementation, the most useful of these provisions is tax increment financing. This technique allows the assessed property valuation within the redevelopment project area to be frozen at its current assessed level when the redevelopment plan is adopted. As the property in the project area is improved or resold, the tax increment revenue generated from valuation increases above the frozen value is redistributed to the redevelopment agency to finance other redevelopment projects. CRL also requires the redevelopment agency to address housing issues for Low and Moderate Income residents in the following ways: expend 20% of the tax increment revenue to increase and improve the supply of Low and Moderate Income housing; · replace Low and Moderate Income housing which is destroyed as a result of a redevelopment project (replacement housing obligation); and ensure that a portion of all housing constructed or substantially rehabilitated in a redevelopment project area be affordable to Low and Moderate Income households (inclusionary obligation). Prior to Temecula's incorporation, the County of Riverside established a Redevelopment Projeqt on July 12, 1988 with the adoption of Redevelopment Plan No. 1-1988. The Project area extends from Interstatel5/State Route 79 Interchange north to the City limits. The Old Town is included within the Project area. After incorporation, the City of Temecula assumed responsibility for administering the Project ama. Pursuant to State law, the Temecula Redevelopment Agency has established a Redevelopment Housing Fund by setting aside 20% of the tax increment revenue. The Agency anticipates an annual deposit of about $1.4-1.6 million in tax increment over a five-year period, for a total deposit of approximately $7.7 million. Based on the required 20% set-aside, approximately $1.5 million will be available during the five- year period for housing activities. Since set-aside funds are a function of property tax revenues, the amount of future deposits will depend on factors such as market conditions and the timing of new taxable development. CRL sets forth a variety of options for localities to expend their housing funds, including: IV. Housing Resources.doc · July 2002 Page 4-47 CITY OF TEMECULA Housing Element I · Land disposition and write-downs; · Site improvements; · Loans; · Issuance of bonds; · Land and building acquisition by Agency; · Direct housing construction; · Housing rehabilitation; · Rent subsidies; · Predevelopment funds; and · Administrative costs for non-profit housing coiporations. The specific uses of the set-aside funds are described in the Housing Plan section of this Housing Element. Section 8 The Section 8 rental assistance program extends rental subsidies to Very Low Income families and elderly who spend more than 30% of their income on rent. The subsidy represents the difference between the excess of 30% of the monthly income and the actual rent. Most Section 8 assistance is issued to the recipients as vouchers, which permit tenants to locate their own housing and rent units beyond the federally determined fair market rent in an area, provided the tenants pay the extra rent increment. The Housing Authority of Riverside administers the Section 8 Certificate/Voucher Program for Temecula. As of April 1999, 22 households were leasing in Temecula with the assistance of Section 8 programs. Of these 22, four households were elderly, and seven were disabled. An additional 138 households living in Temecula were on the waiting list to receive Section 8 rental assistance, 35 of which were elderly and/or disabled. 3. Community Development Block Grant (CDBG) Program The City receives its CDBG funding through the County of Riverside. Based on its population, the City is eligible to receive approximately $300,000 annually from the County. The City has, in the past, used approximately 85% of the CDBG funds for capital projects, such as the Senior Citizen Center Expansion project, and the remaining 15% of the funding is awarded to various public service organizations. No CDBG funds have been used for housing at this time. I I I I I I I I I I I I ! I i I I IV. Housing Resources.doc · July 2002 Page 4~$8 CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I C. Housing Developers The following are several housing providers interested in developing and/or preserving affordable housing in the City: Coachella Valley Housing Coalition 45-701 Monroe Street, Suite G Indio, CA 92201 (760) 347-3157 · Habitat for Humanity 41964 Main Street Temecula, CA 92591 (909) 693-0460 · Jamboree Housing Corporation 2081 Business Center Drive, Suite 216 Irvine, CA 92612 (949) 263-8676 · Affirmed Housing 200 East Washington Avenue, Suite 208 Escondido, CA 92025 (619) 738-8401 Vista Equities 29800 MacArthur Blvd., Suite 750 Irvine, CA 92612 (949) 474-3145 The Olson Company 30200 Old Ranch Pkwy, #250 Seal Beach, CA 90740 (562) 596-4770 San Diego Community Housing Corporation 8799 Balboa Avenue, Suite 220 San Diego, CA 92123 (858) 571-0444 SoCa Housing 8265 Aspen Street, Suite 100 Rancho Cucamonga, CA 91730 (909) 481-0172 I IV. Housing Resources.doc o July 2002 Page 4-49 CITY OF TEMECULA Housing Element I D. Infrastructure and Facilities The majority of the land available for residential development is located adjacent to existing int~astmcture facilities, or within a specific plan area where infrastructure will be provided as part of the development process. As a result, infrastructure facilities will be able to serve most of the future residential development. E. Energy Conservation As residential energy costs rise, increasing utility cost reduce the affordability of housing. The City has many opportunities to directly affect energy use within its jurisdiction. Title 24 of the California Administrative Code sets forth mandatory energy standards for new development, and requires adoption of an "energy budget". The home building industry must comply with these standards while localities are responsible for enforcing the energy conservation regulations. I I I I I I I I I I I I I I I I I IV. Housing Resources.doc · July 2002 Page 4-50 CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I I V. Accomplishments under Adopted Housing Element In order to develop an effective housing plan for the 2000-2005 period, the City must assess the effectiveness of its existing housing programs and determine the continued appropriateness of such programs in addressing housing adequacy, affordability, and availability issues. This section evaluates the accomplishments of each program against the objectives established in the 1993 Housing Element, explains any discrepancy in program achievements, and recommends programmatic changes to the 2000-2005 Element. A. Provision of Adequate Housing Sites 1. Land Use Element/Zoning Ordinance Objective: Provide a range of residential development opportunities through appropriate land use and zoning designations to fulfill the City's share of regional housing needs. The Regional Housing Needs Assessment (RHNA) for the City was determined at 870 units (129 Very Low; 137 Lower; 171 Moderate; and 433 Above Moderate Income households) for the period of 1989 to 1997. Accomplishments: The City provided adequate sites to accommodate its share of regional growth through specific plan and zoning provisions. A total of 5,998 housing units have been constructed between January 1990 and December 1997, representing 690% of the City's allocated RHNA. Based on the affordability analysis contained in Section II and Section IV, Part 4, one- quarter of the new 5,962 single-family houses constructed are affordable to Moderate Income households, while one-half of the 23 apartments and seven mobile homes constructed during this period are affordable to Moderate Income, with the other half affordable to lower income households. Based on this analysis, the City provided 1,509 units affordable to m6derate income households (880% of the RHNA for moderate income households) and 18 units affordable to lower income units (or 13% of the RHNA for lower income households). 2. Sites for Homeless and Emergency and Transitional Shelters Objective: Provide adequate sites for emergency and transitional shelters by adopting a Zoning Ordinance that permits transitional and emergency housing in Medium and High Residential Density zones, and conditionally permits shelters in the remaining Residential zones and Commercial and Industrial zones. Accomplishments: In 1998, Temecula updated the Development Code in which emergency shelters and transitional housing are permitted in the V. Accomplishments.doc · July 2002 Page 4-51 CITY OF TEMECULA Housing Element Medium Density and High Density Residential districts. The City required two units in the Rancho West project to be reserved for transitional housing. These uses are also permitted in other residential districts with a conditional use permit. Emergency shelters are also permitted with a conditional use permit in the Neighborhood Commercial, Community Commemial, Highway/Tourist Commercial, Service Commercial, Professional Office, Business Park, and Light Industrial zoning districts. 3. Landbanking Objective: Acquire sites (or funds) for affordable/senior housing through the development of a Landbanking Program. Accomplishments: In 1996, the Temecula Redevelopment Agency purchased 3.42 acres of land on Pujol Street to be leased to Affirmed Housing for the Mission Village affordable housing project. A 0.19-acre parcel was also purchased by the Agency and will be granted to Habitat for Humanity for the construction of two single-family homes affordable to Very Low Income families. In addition, the Agency acquired two Medium Density Residential parcels totaling 0.67 acres. The Redevelopment Agency is working to acquire four additional parcels and two tax defaulted parcels for a total of 4.47 acres. B. Assist in Development of Affordable Housing 1. Density Bonus Program Objective: Encourage development of housing for low-income households by incorporating a Density Bonus Program into the Zoning Ordinance. Include provisions to ensure the continued affordability of units. Accomplishments: The City updated the Development Code in 1998. As described in Section HI and IV, the new Development Code contains density bonus provisions for affordable and senior housing developments in the High, Medium, and Low Medium residential designations. Density bonuses may also be granted to specific plan areas, as long as the maximum density, including the bonus, does not exceed 50% of the target density in the planning area. Two senior housing developments have been approved at 30 units per acre, providing a total of 385 units. 2. Mortgage Revenue Bond Financing Objective: Increase the supply of rental and ownership units affordable to Low and Moderate Income households by working with Riverside County in securing tax exempt Mortgage Revenue Bond financing. Assistance will be provided to 20 first time homebuyers annually through the single-family I I I I I I I I I I I I I I I I I V. Accomplishments.doc · July 2002 Page 4-52 CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I I program and the use of multi-family Mortgage Revenue Bond financing will be promoted. Accomplishments: Use of Mortgage Revenue Bond for residential construction in Riverside County has been limited in recent years. Instead, the City has relied heavily on redevelopment set-aside funds for affordable housing development. 3. Section 202 Elderly or Handicapped Housing Objective: Provide housing and related facilities for the elderly and handicapped by supporting all viable non-profit entities seeking Section 202 funding. Accomplishments: Due to federal budgetary constraints, the application and allocation of Section 202 funding has become an increasingly competitive process. No non-profit organization pursued Section 202 allotment for the development of senior housing in Temecula. 4. Second Units Objective: Provide increased affordable housing opportunities to low-income households by adopting a Second Unit Ordinance as part of the Development Code. The Second Unit Ordinance shall permit second units on residential lots zoned for single- and multi-family residential use. Incentives shall be included for development of second units intended for occupancy by persons over the age of 62. Accomplishments: The City has incorporated development standards for second units into its Development Code. The Code allows for second units in all residential zoning districts where there is an existing owner-occupied single-family detached dwelling unit if the conditions described in Section III are met. Since adoption of the second unit ordinance, 10 second units have been achieved. C. Government Constraints 1. Priority Processing for Affordable Housing Objective: Facilitate production of affordable housing through the development of a schedule for priority processing of affordable housing projects. A contact person shall be designated to coordinate processing of all of the necessary permits. V. Accomplishments.doc * July 2002 Page 4-53 CITY OF TEMECULA Housing Element I Accomplishments: The City has not adopted a schedule for priority processing of affordable housing projects. The number of housing projects processed during the last ten years did not warrant any special processing procedure for affordable housing projects. 2. Modify Development Fees Objective: Provide incentives to developers of affordable/senior housing by reviewing existing development fee schedule and consider fee reductions, or the addition of fee waiver provisions for the production of low-income and senior citizen housing. Accomplishments: To provide assistance to developers of affordable/senior housing, the Redevelopment Agency may reimburse developers for the development fees paid. On a project-by-project basis, a developer of affordable/senior housing may enter into a development agreement with the Redevelopment Agency that stipulates that the developer will pay the City's development fees and the Agency will reimburse the developer. D. Conserve and Improve Existing Affordable Housing 1. Preservation Program Objective: Conserve affordable housing in the City by encouraging Section 8 project property owners to renew 'their contracts. Identify non-profit organizations capable of purchasing these units. Consider the use of City- based incentives for assisted units that are not subject to HUD-sponsored incentives. Explore the possibility of providing tenant-based subsidies to assisted units that convert to market rate. Accomplishments: The Redevelopment Agency has attempted to work with the owner of the Temecula Villas (Section 8 contract expired in June 1999) to maintain the affordability of the units in exchange for financial incentives from the City. The owner is not interested in maintaining the units as affordable housing and plans on offering the units at market rents. The 2000- 2005 Housing Element includes programs to preserve and expand affordable housing opportunities in the City. 2. Redevelopment Set-aside Fund Objective: Provide a source of funding for housing programs by developing an expenditure plan for redevelopment set-aside monies. Programs that focus on the rehabilitation of units occupied by Low and Moderate Income households, preservation of assisted units, and construction of affordable housing will receive priority in the expenditure plan. I I I I I I I I I I I I I I I I I V. Accomplishments.doc · July 2002 Page 4-54 I I CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I I Accomplishments: Pursuant to State law, the Temecula Redevelopment Agency has established a Redevelopment Housing Set-Aside Fund using 20% of the tax increment revenue. The Agency received a total deposit of approximately $15.8 million in set-aside funds for the period of Fiscal Year 1991/2 through Fiscal Year 1999/2000. These funds were utilized to implement the First Time Homebuyer and Residential Improvement Programs. 3. Code Enforcement Objective: Preserve the housing stock by developing a Housing Inspection Program for all multi-family complexes. Accomplishments: Temecula has not adopted a Housing Inspection Program targeting multi-family complexes. Implementation of such a program is infeasible at this time due to the high cost and staffing requirements. Furthermore, housing in the City is generally in good condition; a citywide inspection program is not warranted. However, the City continues to enfome the Development Code and the Uniform Building Code. 4. Tool Lending Objective: Maintain the integrity of the housing stock by establishing a Tool Lending Program and advertise the availability of home repair information and tool lending. Accomplishments: The City has not adopted a Tool Lending Program as the administration of such a program can be cumbersome and time-consuming. However, to assist households with housing rehabilitation needs, the City offers a range of loan and grant rehabilitation programs, as described below. 5. Low-Interest Residential Rehabilitation Loans Objective: Preserve existing housing stock by establishing a low-interest residential rehabilitation program. Provide program referrals through code enforcement activities. Accomplishments: Since 1996, the City has been offering the following low- interest or grant rehabilitation programs for residential units: Senior Home Repair Grant Program: This program was available to seniors 55 or older with a household income that does not exceed 120% or the area median income adjusted for household size. Eligible households receive grants of up to $3,000 for be used for needed repairs to their homes. As of June 1999, eight senior households have been awarded grants through this rehabilitation program. V. Accomplishments.doc o July. 2002 Page 4-55 CITY OF TEMECULA Housing Element 1 Home Improvement Program: This program is available to owners of single-family detached homes, condominium units, townhouses, and manufactured homes on a permanent foundation that are located within Old Town, La Serena, Winchester Creek, or any condominium units. The household income of the homeowner must not exceed 80% of the area median income adjusted for family size. Grants are available for up to $2,500 to correct confirmed health and safety and/or building code violations. Loans up to $5,000 per household are available for exterior painting, roofing, fence repair/replacement, and other exterior improvements. As of June 1999, 57 projects funded by these two programs have been completed. Multi-Family Rehabilitation Loan Program: The City offers this loan program to owners of rental property within the City to assist with rehabilitation and correction of deferred maintenance. To qualify for the loan program, a number of units will be required to be set-aside for a period of 30-years for rental to Very Low and Low Income tenants. In addition, the property owner must enter into a Property Maintenance 'Agreement to ensure that the property is properly maintained. As of June 1999, the City has provided funding under this program to three multi-family complexes, and 218 units have been set- aside for rental to Very Low and Low Income tenants. 6. Section 8 Housing Certificates/Vouchers Objective: Provide housing subsidies for Low Income households by supporting efforts to increase the amount of funding allocated to HUD programs. Provide referrals to apartment complex owners for information on the various Section 8 programs. Accomplishments: The Housing Authority of Riverside administers the Section 8 Certificate/Voucher Program for Temecula. As of April 1999, 22 households are leasing in Temecula with the assistance of Section 8 programs. Of these 22, four households are elderly, and seven are disabled. An additional 138 households living in Temecula are on the waiting list to receive Section 8 rental assistance, 35 of which are elderly and/or disabled. 7. Home Sharing Objective: Assist seniors and other with limited income in obtaining housing by supporting SHARE and home sharing activities of the Senior Citizens Service Center. The objective is 40 matches a year: 15 Very Low Income households; 15 Lower Income households; and 10 Moderate Income households. I I I I I I I I I I I i I I I I I V. Accomplishments.doc · July 2002 Page 4-56 I I I CITY OF TEMECULA Housing Element I I I I i I i I I I I !- I I I I I Accomplishments: The City has not adopted its own Home sharing program, but continues to support the homesharing activities of the Senior Citizens Service Center. 8. Mobile Home Park Assistance Objective: Preserve low-cost housing options for City residents by providing technical assistance to mobile home park residents in pursuing Mobilehome Park Assistance Program (MPAP) funds. Accomplishments: Heritage Mobile Home Park is the only mobile home park in the City. Residents of this mobile home park did not pursue MPAP funds; no technical assistance was needed. 9. Mortgage Credit Certificate Objective: Assist at least 50 first-time homebuyers by providing tax credits, 10 of which are lower income households. Accomplishments: The City participates in the Mortgage Credit Certificates program administered by the County. As of July 1999, 72 households have been assisted under this program. In addition, the City has implemented a First Time Buyer Program to assist lower income households with the purchase of their first home. This loan program provides assistance for a portion of the down payment and/or closing costs of up to 20% of the purchase price of a home. To qualify, the home buyer must not have owned a home during the previous three years, the buyer's household income must not exceed the area median income adjusted for household size, and the house must be located within the City. As of July 1999, 52 households have received funding through this program. The City has also adopted an Employee Relocation Program to assist employees of participating employers with the down payment for a house located within Temecula. To qualify for this program, the household income of the homebuyer cannot exceed 120% of the area median income adjusted for household size. Down payment assistance is provided in the form of a loan of up to 10% of the purchase price, up to $15,000, with payments deferred for five years. As this is a recent program, adopted in January 1999, no households have been assisted yet. 10. Low income Home Energy Act Program Objective: Support the County-of Riverside Department of Community Action (DCA) and Temecula Senior Citizen Services Center in providing utilities assistance and weatherization to 30 Very Low Income households and V. Accomplishments.doc · July 2002 Page 4-57 CITY OF TEMECULA Housing Element allocate CDBG funding to the DCA for continued administration of the Low Income Home Energy Act Program (LIHEAP). Accomplishments: The City has not participated in the LIHEAP and did not allocate CDBG funding to the DCA for continued administration of the LIHEAP. E. Equal Housing Opportunity 1. Equal Housing Opportunity Objective: Support the activities of the Fair Housing Program to be in compliance with the National Fair Housing Law. Accomplishments: The City participates in the Community Development Block Grants (CDBG) program as part of the Riverside Urban County program. CDBG regulations mandate the provision of programs and services to further fair housing choice. Fair housing services are provided by Fair Housing Program of Riverside County. 2. Housing Referral Directory Objective: Dispense information on local, state and federal housing programs by developing a directory of services and resources for Low and Moderate Income households and special needs groups. Provide information and referrals to persons on an as needed basis. Accomplishments: The City created a Housing Referral Directory. Generally, information provided to persons requesting information through the Directory includes: the name, location, unit sizes, and phone number of the projects providing the required housing. F. Housing Element Monitoring and Reporting 1. Annual Reporting Objective: Ensure that the Housing Element retains its viability and usefulness by developing a monitoring program and report annually to the City Council on implementation progress. For~vard the monitoring report to HCD. Accomplishments: While a formal, annual report addressing the implementation of the Housing Element has not been developed, the Planning Department periodically updates the City Council on the progress of I I i I I I I I i I ! I I I I I I I I V. Accomplishments.doc · July 2002 Page 4-58 I I CITY OF TEMECULA Housing Element i I ! I I ! I I I I I I ! I I I I implementation of the General Plan, including the Housing Element. However, new state law now mandates the annual reporting to the State Department of Housing and Community Development (HCD) and Office of Planning and Research (OPR). The City will comply with the annual reporting requirements. 2. Housing Needs Data Base Objective: Accurately assess housing needs in the community by requiring social service agencies/non-profit organizations receiving CDBG funding from the City to record information on the residences of clients served using a reporting form to be developed by the City. Accomplishments: Service agencies receiving CDBG funding from the City are required to report on their program accomplishments at least annually. Records from service agencies help the City assess the extent of housing and supportive service needs, particularly regarding the special needs population. The City also participated in the preparation of the 2000-2005 Consolidated Plan for the Riverside Urban County consortium. The Consolidated Plan includes an updated housing and community development needs assessment. V. Accomplishments.doc ,, July 2002 Page 4-59 CITY OF TEMECULA Housing Element I VI. Housing Plan The five-year Plan is the centerpiece of the 2000-2005 Housing Element for Temecula. The Housing Plan sets forth the City's goals, policies, and programs to address the identified housing needs. Housing programs included in this Plan define the specific actions the City will take to achieve specific goals and policies. The City's overall strategy for addressing its housing needs has been defined according to the following areas: Providing adequate housing sites; Assisting in development of affordable housing; · Removing govemmental constraints; Conserving and improving existing affordable housing; and · Promoting equal housing opportunity. A. Goals and Policies Provide Adequate Housing Sites Goal 1 Provide a diversity of housing opportunities that satisfy the physical, social and economic needs of existing and future residents of Temecula. Discussion Policy 1.1 Policy 1.2 Policy 1.3 Policy 1.4 Policy 1.5 Policy 1.6 The City provides for a mix of new housing opportunities by designating a range of residential densities and promoting creative design and development of vacant land. By providing for the construction ora range of housing, the needs of all sectors of the community can be met. Provide an inventory of land at varying densities sufficient to accommodate the existing and projected housing needs in the City. Encourage residential development that provides a range of housing types in terms of cost, density and type, and provides the opportunity for local residents to live and work in the same community by balancing jobs and housing types. Require a mixture of diverse housing types and densities in new developments around the village centers to enhance their people-orientation and diversity. Support the use of innovative site planning and architectural design in residential development. Encourage the use of clustered development to preserve and enhance important environmental resources and open space. Encourage the development of compatible mixed-use projects that promote and enhance the village concept, facilitate the efficient use of public facilities, and support alternative transit options. I i I I I I ! I i I I I I ! I I I VI. Plan.doc * July 2002 Page 4-60 I I I CITY OF TEMECULA Housing Element I I I I i I i I I '1 I ! I I I I I Assist in Development of Affordable Housing Goal 2 Provide affordable housing for all economic segments of Temecula. Discussion Temecula works to provide a variety of affordable housing opportunities for all economic segments of the community. By coordinating with other government agencies and non-profit organizations to access funding sources for affordable housing and partner in the creative provision of affordable housing, the City helps provide safe and affordable housing for all residents in the community. Policy 2.1 Promote a variety of housing opportunities that accommodate the needs of all income levels of the population, and provide opportunities to meet the City's fair share of Low and Moderate Income housing. Policy 2.2 Support innovative public, private and non-profit efforts in the development of affordable housing, particularly for special needs groups. Policy 2.3 Encourage the use of non-traditional housing models, including single-room occupancy structures (SRO) and manufactured housing, to meet the needs of special groups for affordable housing, temporary shelter and/or transitional housing. Policy 2.4 Pursue all available forms of private, local, state and federal assistance to support development and implementation of the City's housing programs. Remove Governmental Constraints Goal 3 Remove governmental constraints in the maintenance, improvement, and development of housing, where appropriate and legally possible. Discussion The city's goal is to remove or mitigate constraints to the maintenance, improvement, and development of housing to ensure that housing affordable to all members of the community is provided. Govern_mental requirements for the development and rehabilitation of housing often add to the cost of the provision of affordable housing and may result in fewer opportunities for housing affordable to lower income households. Reducing development fees and ensuring that City regulations provide for the safety and welfare of the population without imposing unreasonable costs will help in the provision of affordable housing. Policy 3.1 Provide reasonable processing procedures and fees for new construction or rehabilitation of housing. VI. Plan.doc * July 2002 Page 4-61 CITY OF TEMECULA Housing Element I Policy 3.2 Policy 3.3 Consider mitigating development fees for projects providing affordable and senior housing. Periodically review City development standards to ensure consistency with the General Plan and to facilitate high-quality affordable housing. Conserve and Improve Existing Affordable Housing Goal 4 Conserve the existing affordable housing stock. Discussion Policy 4.1 Policy 4.2 Policy 4.3 Along with providing for new affordable housing opportunities, the City also has a goal to preserve existing affordable housing opportunities for residents. By providing incentives and programs to maintain existing units, both the affordability and the structural integrity of the units, the City ensures that affordable housing opportunities are preserved. Monitor the number of affordable units eligible for conversion to market-rate units and develop programs to minimize the loss of these units. Develop rehabilitation programs that are directed at' preserving the integrity of the existing housing stock. Support the efforts of private and public entities in maintaining the affordability of units through implementation of energy conservation and weatherization programs. Promote Equal Housing Opportunities Goal 5 Provide equal housing opportunity for all residents in Temecula. Discussion Policy 5.1 In order to make provisions for the housing needs of all segments of the community, the City must ensure that equal and fair housing opportunities are available to all residents. Encourage and support the enforcement of laws and regulations prohibiting the discrimination in lending practices and in the sale or rental of housing. Policy 5.2 Support efforts to ensure unrestricted access to housing for all segments of the community. Policy 5.3 Encourage housing design, standards that promote the accessibility of housing for the elderly and disabled. I I I i I ! i I ! I I I I I I I I VI. Plan.doc · July 2002 Page 4-62 I I CITY OF TEMECULA Housing Element I i I I I i i I I I i I I I I I I I Policy 5.4 Encourage and consider supporting local private non-profit groups that address the housing needs of the homeless and other disadvantaged groups. B. Housing Programs The goals and policies contained in the Housing Element address Temecula's identified housing needs and are implemented through a series of housing programs. Housing programs include both programs currently in operation in the City and new programs that have been introduced to address the unmet housing needs. This section provides a description of each housing program, and future program goals. The Housing Program Summary (Table 4-27) located at the end of this section summarizes the future five-year goals of each housing program, along with identifying the program funding sources, responsible agency, and time frame for implementation. Provide Adequate Housing Sites A key element in satisfying the housing needs of all segments of the community is the provision of adequate sites for housing of all types, sizes and prices. This is an important function in both zoning and General Plan designations. 1. Land Use Element and Development Code The Land Use Element of the Temecula General Plan designates land within the City for a range of residential densities ranging from 0.1 to 20 units per acre. The following aspects of the Development Code facilitate the provision of adequate sites for affordable development: No density targets have been set for the Medium and High Density Residential categories so these districts can be developed at their maximum allowable density; · The Village Center Overlay and Planned Development Overlay allow for the modifications and flexibility in development standards; · Mobile home parks are allowed in all of the residential zoning districts with a conditional use permit; Senior and affordable housing are allowed in a variety of residential and non-residential zoning districts and are eligible for density bonuses and development concessions; Congregate care facilities are allowed in a variety of residential and non- residential zoning districts and the facilities are not limited specifically to the density requirements of the specific zoning district; VI. Plan.doc · July 2002 Page 4-63 CITY OF TEMECULA Housing Element · Second units are allowed in all residential zoning districts where a detached single-family unit exists; and Emergency shelters and transitional housing are allowed in the Medium and High Density Residential zoning districts, and conditionally allowed in the remainder of the residential districts. Emergency shelters are also conditionally allowed in several of the non-residential zoning districts. As stated in Section 1V, the City has a RHNA of 7,798 new units for the period of 1998 through 2005. A total of 2,242 units have already been approved or constructed between 1998 and July 1999. The residential development capacity under the Temecula Land Use Plan provides sufficient land to meet the City's remaining need for new construction of the remaining 2,242 units for the 2000-2005 period. Five-Year Objectives: · The City will continue to implement and, as appropriate and necessary, augment the Land Use Element and Development Code. The City will provide for an adequate number of residential sites to accommodate the remaining regional share of 999 Very Low Income units, 789 Low Income units, 1,206 Moderate Income units, and 2,562 Above Moderate Income units. The City will maintain an inventory of sites suitable for residential development and provide that information to interested developers. The City will encourage the reservation of land that is currently designated for multiple-family development for the development of multiple-family housing by providing the multi-family sites inventory to multi-family housing developers to solicit development interest. The City will update the multi-family sites inventory at least once a year. As part of the General Plan update, the City has identified additional areas with mixed-use potential. The City will work to create a mixed-use overlay in the Land Use Policy May to be applied to approximately 448 acres of land along the 1-15 corridor. Residential mixed-use is permitted at_a density of 30 units per acre. To facilitate mixed4use development, the City will establish appropriate flexible development standards such as increased building height and shared parking opportunities in the Zoning Ordinance. Target date for adopting the Land Use Policy Map is anticipated in 2003. Within six months of adoption of the Land Use Policy Map including the mixed use overlay, tl?e City will establish development standard appropriate for implementing mixed-use standards. I i I I I I i I I I I I I I I I I I VI. Plan.doc * July 2002 Page 4-64 I CITY OF TEMECULA Housing Element I I I ! I I I I i I I I I I I I I I The City will encourage higher density residential development within the mixed-use overlay areas by providing appropriate, flexible development standards through the Zoning Ordinance. Upon completion of the General Plan (2003), the City will revise the Zoning Ordinance to establish specific use, height, bulk, parking, landscaping, and other guidelines appropriate for mixed-use development. 2. Sites for Emergency and Transitional Housing The homeless population of Temecula consists of only a few transient homeless persons, though there is a larger rural homeless population located outside of the City limits in the unincorporated, agricultural areas. While there are a number of facilities and service agencies serving the homeless needs of Temecula, the only transitional housing within Temecula is the two units within the Rancho West project that have been reserved as transitional housing. The Temecula Development Code provides for the provision of emergency shelters and transitional housing within the City. The City facilitates the development of emergency shelters and transitional housing by permitting such facilities in the Medium Density and High Density Residential districts by right. These uses are also permitted in other residential districts with a conditional use permit. Emergency shelters are also permitted with a conditional use permit in the Neighborhood Commercial, Community Commemial, Highway/Tourist Commercial, Service Commercial, Professional Office, Business Park, and Light Industrial zoning districts. Five-Year Objectives: · The City will continue to permit emergency shelters and transitional housing as identified in the Development Code. · The City will continue to require affordable housing projects receiving assistance from the City to reserve units for transitional housing. VI. Plan.doc * July 2002 Page 4-65 CITY OF TEMECULA Housing Element Assist in Development of Affordable Housing New construction is a major source of housing for prospective homeowners and renters. However, the cost of new construction is substantially greater than other program options. Incentive programs, such as density bonus, offer a cost-effective means of providing affordable housing. Other programs, such as the First Time Home Buyers Program, increase the affordability of new and existing housing. 3. Density Bonus Ordinance The City has adopted its own Density Bonus Ordinance that complies with the State requirements. The allowable density bonus for qualifying senior and affordable housing projects increases the total allowable density for High Density Residential, Medium Density Residential, and Low Medium Density Residential zones. For the approved specific plans, the maximum density, including the density bonus, is not allowed to exceed 50% of the target density in the planning area. Affordable housing projects, including affordable senior projects may also be granted at least one development concession by the City as an incentive for the provision of affordable housing. The potential concessions include: ·An increase in the maximum lot coverage; · A modification to the setback or required yard provisions; · An increase in the maximum allowable building height; · ' A reduction in the required on-site parking; · A reduction in the amount of on-site landscaping, except that no reduction in on-site recreational amenities may be approved unless the affordable housing is in close proximity with easy access to a public park with recreational amenities; · A reduction in the minimum lot area; or · Approval of an affordable housing project in the Professional Office zone with the approval of a conditional use permit. Five- Year Objectives: · The City will continue to implement the Density Bonus Ordinance. · The City will inform residential development applicants of opportunities for density increases. I I I I I I I I I I I I I I I I I VI. Plan.doc · July 2002 Page 4-66 I I CITY OF TEMECULA Housing Element I I I I I I I I I I I I I ! I I I I 4. Land Assemblage and Affordable Housing Development The City can utilize CDBG and redevelopment monies to purchase land for the development of lower and Moderate Income housing. Through its Redevelopment Agency, the City has acquired, through the pumhase or tax default, three parcels of residential land, not including the land acquired for the Mission Village project, to he used for the development of affordable housing. The Redevelopment Agency typically provides the land it acquires to affordable housing developers for the development of housing units affordable to Low and Very Low income households. The City currently has an additional four parcels, a total of 1.37 acres, under contract for purchase. Two tax-defaulted properties totaling 3.1 acres will also be available for affordable housing development Five- Year Objectives: · The City will continue to acquire land for use in the provision of affordable housing. · The City will facilitate the development of the nine parcels to produce 89 housing units affordable to lower income households. 5. Second Unit Ordinance The City has adopted a Second Unit Ordinance to facilitate the construction of affordable second units within developed areas of the City. The Second Unit Ordinance allows for second units in all residential zoning districts where there is an existing owner-occupied single-family detached dwelling unit if certain conditions are met, as described in Section IV. Five- Year Objectives: · The City will continue to allow and promote the construction of affordable second units to result in the construction of five new second units by 2005. 6. Mortgage Credit Certificate Program The Mortgage Credit Certificate (MCC) program is administered countywide by the County of Riverside Economic and Development Agency (EDA), and is a way for the City to further leverage homeownership assistance. MCCs are certificates issued to income-qualified first-time homebuyers authorizing the household to take a credit against federal income taxes of up to 20% of the annual mortgage interest paid. This tax credit allows the buyer to qualify more easily for home loans as it increases the effective income of the buyer. VI. Plan.doc · July 2002 Page 4-67 CITY OF TEMECULA Housing Element Five-Year Objectives: · The City will continue to promote the regional Mortgage Credit Certificate program to assist an average of 10 households annually. 7. First Time Home Buyer Program The City's First Time Home Btiyer Program (FTHB) provides loan assistance to first time home buyem whose income does not exceed the area median income. The home being purchased must be located within City limits, be attached to a permanent foundation, have a minimum of two-bedrooms, and be occupied by the seller, or vacant. The maximum assistance available under this program is 20% of the purchase price plus closing costs, up to a total payout of $24,000. The home buyer also must maintain to house in good condition during the term of the assistance. Five-Year Objectives: · The City will continue to implement the First Time Home Buyer Program to assist 15 households annually. 8. Employee Relocation Program The Employee Relocation Program is designed to provide assistance to families moving to the City due to relocation of their employer. This program provides a second trust deed of up to 10% of the purchase price of the house, up to $15,000, to be used for the downpayment. During the first five years of the 30-year loan, no payment on the loan is required. For the remaining 25 years, the loan is fully amortized for 300 months, at Prime Rate of simple interest. To be eligible, the applicant must be employed with a City approved company participating in this program and the household income must not exceed 120% of the area median income. The home must be located within the City limits, be attached to a permanent foundation, and be occupied by the seller, or vacant. Five-Year Objectives: · The City will continue to implement its Employee Relocation Program to assist five households annually. I I I ! I I I I I I I I I I i i ! VI. Plan.doc * July 2002 Page 4-68 I CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I I Remove Governmental Constraints Under State law, the Temecula Housing Element must address, and where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing. The following programs are designed to lessen governmental constraints to housing development. 9. Development Fees Reimbursement Developers of affordable/senior housing may qualify to receive a reimbursement by the Redevelopment Agency for development fees paid by the developer. Typically, developers of affordable/senior housing pay the City the required development fees. If the development qualifies for reimbursement of development fees through the Redevelopment Agency, the developer enters into a contract with the Agency, which then reimburses the developer for the fees paid. Five- Year Objectives: The Redevelopment Agency will continue to enter into development agreements with qualifying senior/affordable housing projects on a case-by- case basis to provide development fee reimbursement. Conserve and Improve Existing Affordable Housing A community's existing affordable housing stock is a valuable resource that should be conserved, and if necessary, improved to meet habitability requirements. 10. Preserve At-Risk Housing Units Between July 1, 2000 and June 30, 2010, three assisted housing projects in Temecula are at-risk of converting to market rate housing. The 344-unit Woodcreek project was financed through the use of a multi-family revenue bond and the Low Income rent restrictions on the 71 affordable units are due to expire in March 2003. The 55-tmit Rancho California project maintains a 20-year Section 8 contract that subsidizes rents for the 55 units. The Section 8 contract ~vill expire in March 2004. Detailed analysis on the potential conversion of these projects is included in the Housing Needs section of the Housing Element. Finally, the 40-unit Oaktree project was financed through FmHA-New Construction Section 515 loans. As discussed in the Housing Needs section of this Element, affordability control on this project may potentially expire in 2004 with prepayment of the loan. However, due to the nature of the program it is extremely unlikely that the Oaktree project will be permitted to prepay and convert to market-rate rents. The City of Temecula will implement the following programs on an on-going basis to conserve its affordable housing stock. VI. Plan.doc ,, July 2002 Page 4-69 CITY OF TEMECULA Housing Element I Monitor Units At-Risk: Monitor the status of Woodcreek, Rancho California, and Oaktree since the affordable restrictions are due to expire during the planning period. b$ Work with Potential Purchasers: Establish contact with public and non- profit agencies interested in purchasing and/or managing units at-risk to inform them of the status of the Rancho California and Oaktree projects. Tenant Education: The California Legislature passed AB 1701 in 1998, requiring property owners give a nine-month notice of their intent to opt our of low income restrictions. The City will work with tenants of at-risk units and provide them with information regarding tenant rights and conversion procedures. The City will also provide tenants with information regarding Section 8 rent subsidies through the Riverside County Housing Authority, and other affordable housing opportunities. Assist Tenants of Existing Rent Restricted Units to Obtain Priority Status on Section 8 Waiting List: Work with the Riverside Housing Authority to place tenants displaced from at-risk units on a priority list for Section 8 rental assistance. Five-Year Objectives: · The City will monitor the status of Woodcreek, Rancho California, and Oaktree. The City will identify non-profit organizations as potential purchasers/managers of at-risk housing units. The City will explore funding sources available to preserve the affordability of Woodcreek, Rancho California, and Oaktree or to provide replacement units. The City will assist qualified tenants to apply for priority status on the Section 8 voucher/certificate program immediately should the owners of the at-risk project choose not to enter into additional restrictions. 11. Redevelopment Set-Aside Prior to Temecula's incorporation, the County of Riverside established a Redevelopment Project on July 12, 1988 with the adoption of Redevelopment Plan No. 1-1988. The Project area extends from Interstatel5/State Route 79 interchange north to the City limits. The Old Town is included within the Project area. ARer incorporation, the City assumed resPonsibility for administering the Project area. I I I ! I I I I ! I I I I ! i I I VI. Plan.doc · July 2002 Page 4-70 I I I CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I Pursuant to State law, the Temecula Redevelopment Agency established a Redevelopment Housing Set-Aside Fund using 20% of the tax increment revenue. The Agency anticipates an annual deposit of about $1.4-1.6 million in tax increment over a five-year period, for a total deposit of approximately $7.7 million. Based on the required 20% set-aside, approximately $1.5 million will be set aside during the five-year period for use for housing. Since set-aside funds are a function of property tax revenues, the amount of future deposits will depend on factors such as market conditions and the timing of new taxable development. The housing programs identified for expenditure of Housing Set-Aside Funds include funding for the development and preservation of multi-family affordable housing, acquisition of land for the development of Low and Moderate Income housing, and assistance in the rehabilitation of existing housing units. All of these programs are considered Priority I projects for the use of set aside funds. Five- Year Objectives: · The City will continue to utilize its Housing Set-Aside Fund to implement the identified housing programs, pursuant to State law. 12. Code Enforcement While the majority of the existing housing stock in Temecula is less than 30 years old, there is a need to enforce housing maintenance for some of the older housing units. The City implements a code enforcement program to correct housing and building code violations. The City has adopted and enforces the Uniform Building Code (UBC). Five-Year Objectives: The City will continue to enforce the UBC and offer information regarding the City's housing rehabilitation programs to low and moderate-income households cited for code violations. 13. Residential Improvement Program The City provides the following grant and low-interest loan programs under its Residential Improvement Program to assist in rehabilitating existing residential units: Senior Home Repair Grant - This program is available to seniors 55 or older with household incomes not exceeding 120% of the area median income. The one time grant of up to $3,000 can be used for repairing owner-occupied homes on a permanent foundation located in Old Town, La Serena, Winchester Creek, or condominiums throughout the City. VI. Plan.doc * July 2002 Page 4-71 CITY OF TEMECULA Housing Element Single-Family Emergency Grant - This program provides up to $2,500 grants to correct conftrmed health and safety and/or building code violations in owner-occupied homes on a permanent foundation located in Old Town, La Serena, Winchester Creek, or any condominium throughout the City. The household's income must not exceed 80% of the area median income. Single-Family Paint & Fence Repair Loan - This loan program is available to households whose income does not exceed 80% of the area median income. Eligible housing units include owner-occupied homes on a permanent foundation located in Old Town, La Serena, Winchester Creek, or any condominium throughout the City. The maximum loan is $5,000 to be used for exterior improvements to the house. The interest rate for the loan is prime interest rate, but the payments are deferred and forgiven after five years if the owner still owns and occupies the unit. If the house is sold within the five-year period, the loan will be due and payable. Multi-Family Rehabilitation Loan - This program is available to owners of rental property within the City of Temecula. The maximum loan amount is $3,000 per unit and it to be used to for rehabilitation and correction of deferred maintenance of the units. The term of the loan is 20 years, with repayment deferred for the first five years, after which the loan is fully amortized for the remaining 15 years at prime rate, simple interest. The loan becomes due if the property is sold or refinanced prior to the 20-year period. In exchange for the loan, an affordability covenant on the project will be recorded for a 30-year duration. These covenant requires that a portion of the units be reserved for rent to Very Low and Low Income tenants. The owner is also required to maintain the property and improvements in good condition. Five-Year Objectives: · The City will fund 30 rehabilitation grants and loans annually through its Residential Improvement Program. 14. Section 8 Rental Assistance Program The Section 8 rental assistance program extends rental subsidies to Very Low Income families and elderly that spend more than 30% of their income on rent. The Section 8 certificate subsidy represents the difference between the excess of 30% of the monthly income and the actual rent (up to the federally determined Fair Market Rent (FMR). Most Section 8 assistance is issues to the recipients as vouchers, which permit tenants to locate their own housing and rent units beyond the FMR, provided the tenants pay the extra rent increment. The City contracts with the Riverside County Housing Authority to administer the Section 8 Certificate/Voucher Program. I I I I I i I I I I I I I I I I I V1. Plan.doc · July 2002 Page 4-72 I I I CITY OF TEMECULA Housing Element I I I I I I I I i I I ! I I I Five-Year Objectives: The City will continue to contract with the County of Riverside to administer the Section 8 Rental Assistance Program and provide rental assistance to at least 22 Very Low Income Temecula households. · The City will support the County of Riverside's applications for additional Section 8 allocation. · The City will promote the Section 8 program to second unit owners. 15. Mobilehome Assistance Program (MPAP) To preserve affordable housing opportunities found within mobilehome parks, the California Department of Housing and Community Development (HCD) provides financial and technical assistance to Low Income mobilehome park residents through the Mobilehome Assistance Program (MPAP). The MPAP provides loans of up to 50% of the purchase price plus the conversion costs of the mobilehome park so that Low Income residents, or organizations formed by Low Income residents can own and/or operate the mobilehome park. Heritage Mobilehome Park is the only mobile home park in Temecula. The owners have indicated that they intend to operate the park indefinitely. In the event that the owners decide to close the park, the City will work with the tenants to acquire funding through the MPAP program. Five- Year Objectives: The City will provide technical assistance to Heritage Mobilehome Park residents in pursuing MPAP funds in the event that the owners propose to close the mobilehome park. Promote Equal Housing Opportunities In order to make adequate provision for the housing needs of all economic segments of the community, the housing program must include actions that promote housing opportunities for all persons regardless of race, religion, sex, family size, martial status, ancestry, national origin, color, age or physical disability. 16. Equal Housing Opportunity The Riverside County Consortium, of which the City is a member, has adopted an Analysis of Impediments (AI) to Fair Housing Choice and has conducted fair housing planning to implement the recommendations identified in the AI. VI. Plan.doc · July 2002 Page 4-73 CITY OF TEMECULA Housing Element 1 The Fair Housing Program of Riverside County maintains a comprehensive approach to affirmatively further and ensure equal access to housing for all persons. The three major components of this approach are: education, training/technical/ consultant assistance, and fair housing rights assistance. The Fair Housing Program of Riverside County is also an advocate for affordable housing, legislative reform, local compliance, and research projects relative to fair housing and human rights issues. The agency works with the State Department of Fair Employment and Housing, and HUD in the referral, enforcement, and resolution of housing discrimination cases. Five-Year Objectives: · Temecula will continue to participate in the Riverside County Consortium in implementing the fair housing plan. · The City will place fair housing brochures at City counters, public libraries, Temecula Community Center and Temecula Community Recreation Center. The City will continue to post information regarding fair housing services on the City web site. Future fair housing workshops can also be advertised on the City web site. The City will continue to provide referral services to the Fair Housing Program of Riverside County for residents inquiring about fair housing issues. 17. Housing Referral Directory The City provides housing referral services through its Housing Referral Directory. People contacting the City are provided information on housing projects offering housing specific to the person's needs. Five-Year Objectives: · The City will continue to offer housing referral services through its Housing Referral Directory. 18. Housing for Persons with Disabilities The City will analyze and determine whether there are constraints on the development, maintenance, and improvement of housing for persons with disabilities, consistent with SB 520 enacted January 1, 2002. The analysis will include land use controls, permit procedures, and building codes. I I I I I I I I I I i I I ! I I I VI. Plan.doc - July 2002 Page 4-74 I I CITY OF TEMECULA Housing Element I I I I I I I I I I i I I I I I I Five- Year Objectives: If any constraints are found in these areas, the City will develop a plan by January 1, 2003 to remove the constraints or provide reasonable accommodation for hosing intended for persons with disabilities~ Housing Element Monitoring and Reporting To ensure that the housing programs identified in this Housing Element are implemented and achieve their goals, an accurate monitoring and reporting system is required. 19. Annual Reporting/Housing Needs Database Service agencies receiving CDBG funding from the City are required to report on their program accomplishments at least annually. Records from service agencies help the City assess the extent of housing and supportive service needs, particularly regarding the special needs populations. The City is also required to submit annual reports to the state addressing its success in implementing the General Plan and Housing Element. These reports provide decision makers with useful information regarding how successful the housing programs are with meeting the needs of the community. Five- Year Objectives: The City will continue to require that service agencies report on their accomplishments annually. This information will be used by the City to assess the community's housing needs and how well these needs are being met by the existing programs. · The City will continue to submit annual reports to the state assessing the implementation of the General Plan and Housing Element. VI. Plan.doc · July 2002 Page 4-75 CITY OF TEMECULA Housing Element I Table 4-28 Housing Program Summary Provision of Adequate Housinfl Sites 1. Land Use Element and Provide a range of · Continue to implement and, as Departmental Planning Development Code residential development appropriate and necessary, augment Budget Department opportunities through the Land Use Element and appropriate land use Develepment Code. designations~ · Provide for an adequate number of residential sites to accommodate the remaining regional fair share for all income levels. · Maintain an inventory of sites available for residential development and provide this information to interested developers. · Encourage the reservation of land that is currently designated for multiple-family development for the development of maltiple-family housing by providing the multi-family sites inventory to multi-family housing developers to solicit development interest. U palate the mutii-family sites inventory at least once a year. · Work to create a mixed-use oveday in the Land Use Policy May to be applied to approximately 448 acres of land along the M5 corridor. Residential mixed-use is permitted at a density of 30 units per acre. Establish apprepdate flexible development standards such as increased building height and shared parking opportunities in the Zoning Ordinance. Target date for adopting the Land Use Policy Map is anticipated in 2003. Within six months of adoption of the Land Use Policy Map including the mixed use oveday, establish development standard apprepdate for implementing mixed-use standards. · Encourage higher density residential development within the mixed-use oveday areas by providing appropriate, flexible development standards through the Zoning Ordinance. Upon completion of the General Plan (2003), revise the Zoning Ordinance to establish specific use, height, bulk, parking, landscaping, and other guidelines apprepdate for mixed-use development, I I I I I I I I I i I I I I I I VI. Plan.doc · July 2002 Page 4-76 CITY OF TEMECULA Housing Element I Table 4-28 Housing Program Summary · Responsible Housing Program Program Objectives 5-Year Objective and Time Frame Funding Source Agency 2. Sites for Emergency Provide for sites for the ,. Continue to permit emergency Departmental Planning and Traditional development and shelters and transitional housing as Budget Department Housing opportunities for the identified in the Development Code. provision of housing for · Continue to require affordable the homeless, housing projects receiving assistance from the City to reserve units for transitional housing. Affordable Housing Development 3. Density Bonus Encourage the provision · Continue to implement the City's Departmental Planning Ordinance of seeior/affordable Density Bonus Ordinance. Budget Depadment housing development by · Inform residential development continuing to implement applicants of opportunities for density the Density Bonus increases. Ordinance. 4, Land Assemblage and Assist with the · Continue to acquire land for use in the Redevelopment Redevelopment Affordable Housing development of provision of affordable housing. Set-aside Funds Agency Development affordable housing by · Fecilitate the development of nine and CDBG funds acquiring land for the parcels to produce 89 housing units development of Low and affordable to lower income Moderate Income households. housing. 5. Second Unit Ordinance Facilitate the · Continue to allow and promote the Departmental Planning development of construction of affordable second Budget Department affordable housing units to result in the construction of through the construction five new second units by 2005, of second units. 6. Mortgage Credit Assist first time home · Continue to promote the regional Departmental Planning Certificate Program buyer by promoting the Mortgage Credit Certificate program Budget Department regional Mortgage Credit to assist an average of 10 households Certificate Program. annually. 7. First Time Home Buyer Assist lower income first · Continue to implement the First Time Redevelopment Redevelopment Program time home buyers with Home Buyer Program to assist 15 Set-aside Agency the purchase of a home households annually. through the use of loan assistance. 8. Employee Relocation Provide loan assistance · Continue to implement the Employee Redevelopment Redevelopment Program to qualified, lower Relocation Program to assist five Set-aside Agency income relocated households annually. employees for the purchase of a home. Removal of Governmental Constraints 9. Development Fees Reduce the cost of ° Continue to enter into development Redevelopment Redevelopment Reimbursement affordable/senior agreements with qualifying Set-aside Agency housing development senior/affordable housing projects on through the a case-by-case basis to provide reimbursement of development fee reimbursement. development fees. I i I I I I I I I I I I I I I I I VI. Plan.doc · July 2002 Page 4-77 CITY OF TEMECULA Housing Element Table 4-28 Housing Program Summary Housing Program I ProgramObjectivas I 5-YearObjecfiveandTimeFrame I FundingSource I ResponsibleA;ency Consewe and Improve Existin9 Affordable Housing 10. PreserveAt-Risk Enceurege the · Monitor the statusof Woedcreek, Redevelopment Redevelopment Housing Units continued affordabilily of Rancho California, and Oaktree. Set-aside Funds, Agency, Planning aNisk housing units to · Idanti~ non-profit organizations as CDBG Funds, and Department and preserve exislieg potential purchasers/managers of at- Section 8 Riverside Housing ~ordable housing dsk housing units. Vouchers/ Authodty. opportunities. ,. Explore funding sources available to Cediticates. preserve at-hsk units or to provide replacement units, · Assist tenants to apply for pfiodty status on the Section 8 voucher/cediticate program immediately should the owners of the at-dsk project choose not to enter into additional rosthctioas, 11. Redevelopment Set- Develop and preserve · Continue to utilize the City's Housing Redevelopment Redevelopment Aside affordable housing Set-aside Fund to implement the Set-aside Funds Agency through the expendtiure identified housing programs, pursuant of Redevelopment Set- to State law. aside funds. 12. Cede Enforcement Maintain the existing · Continue to enforce the UBC and Bepartmental Planning housing stock through offer information regarding housing Budgets Depadment the enforcement of the rehabilitation programs to Iow and Uniform Building Cede moderate income households cited (UBC). for code violations. 13, Residential Assist with the · Fund 30 rehabilitation grants and loan Redevelopment Redevelopment improvement rehabilitation of existing annually through the City's Set-aside and Agency Program single and mu[ti-family Residential Improvement Program. CDBG Funds lower income housing units through the use of loan and grant pregrams. 14. Section 8 Rental Support the County of - Continue to contract with the County HUD Section 8 Planning Assistance Program Riverside's Section 8 of Riverside to administer the Section allocations Department Rental Assistance 8 Rental Assistance Program and Program. provide rental assistance to at least 22 Very Low Income Temecula households. · Suppor~ the County of Riverside's application for additional Section 8 allooation. · Promote the Section 8 program to second unit owners. 15, Mobilehome Avoid the loss of · Provide technical assistance to Departmental Planning Assistance Program affordable housing Hedtage Mobilehome Park residents Budget Department (MPAP) within mobilehome parks in pursuing MPAP funds in the event due to the closure of that the owners proposed to close the existing parks by mobilehome park. providing technical assistance to lower income mobilehome park residents pursing MPAP funds. I I I I I I I I I I I I I I I I I VI. Plan.doc · July 2002 Page 4-78 I CITY OF TEMECULA Housing Element I Table 4-28 Housing Program Summary Housing Program I Program Ob]ectives I 5-YearOblecfiveandTimeFrame I Funding Source I ResponsibleAgency Promote Equal Housing O oortuni~y 16. Equal Housing Promote equal · Continue to participate in the Departmental Planning Opportunity opportunities for housing Riverside County Consortium in Budget Department by padidpating in the implementing the fair housing plan. Riverside County ,, Place fair housing brochures at City Consortium. counters, public libraries, Temecula Community Center, and Temecula Community Recreation Center. · Post information regarding fair housing services on City web site. · Provide referral services to the Fair Housing Program. 17. Housing Referral Assist community · Continue to offer housing referral Departmental Planning Directory members in locating services through the City's Housing Budget and Department and housing which meets the Referral Directory. Redevelopment Redevelopment individual's needs. Set-aside Funds Agency 18. Housing for Persons Analyze and determine · Develop a plan by January 1,2003 to Departmental Planning and with Disabilities whether there are remove the constraints or provide Budget Building constraints on the reasonable accommodation for Departments development, hosing intended for persons with maintenance, and disabilities. improvement of housing for persons with disabilities, consistent with SB 520 enacted January 1, 2002. Housing Element Monitoring and Reporting 19. Annual Reporting/ Monitor the housing ,, Continue to require that service Departmental Planning Housing Needs needs of the community agencies report on their Budget and CDBG Department Database and the ability of current accomplishments annually. This Funds housing programs to information will be used by the City to meet these needs assess the community's housing through ongoing needs and how well these needs are ' reporting, being met by the existing programs. · Continue to submit annual reports to the state assessing the implementation of the General Plan and Heesin~ Element. I I I I I I I I I I I I I I I I I VI. Plan.doc · July 2002 Page 4-79 CITY OF TEMECULA Housing Element C. Summary of Quantified Objectives The following Table 4-29 summarizes the City's quantified five-year objectives with regard to housing production, conservation, rehabilitation, and provision of homeowners assistance. Table 4-29 Summary of Quantified Objectives Very Low Moderate Upper Type of Activities Income Low Income Income Income Total New Construction 1,403 1,014 1,716 i 3,665 7,798 Conservation At-Risk Housing 166 166 Section 8 22 22 Rehabilitation 24 36 90 150 Homeownership First-Time Homebuyer 5 40 80 125 Employee Relocation 5 20 25 Total 1,620 1,095 1,906 3,665 8,286 I I I I i I I I I I I I I I I I I VI. Plan.doc · July 2002 Page 4-80 I CITY OF TEMECULA Housing Element I I I I i I I I ! i I I ! I I I I I APPENDIX A: HOUSING ELEMENT GLOSSARY Acre: a unit of land measure equal to 43,560 square feet. Acreage, Net: The portion of a sire exclusive of existing or planned public or private road rights-of- way. Affordability Covenant: A property tide agreement which phces resale or rental restrictions on a housing unit. Affordable Homing: Under State and federal statutes, housing which costs no more than 30 percent of gross household income. Housing costs include rent or mortgage payments, utilities, taxes, insurance, homeowner association fees, and other rehted costs. Annexation: The incorporation of land area into the jurisdiction of an existing city with a resulting change in the boundaries of that city. Assisted Housing: Housing that has been subsidized by federal, state, or local housing programs. At-Risk Housing: Mulfi-farnily rental housing that is at risk of losing its status as housing affordable for low and moderate income tenants due to the expiration of federal, state or local agreements. California Department of Housing and Community Development - HCD: The State Department responsible for administering State-sponsored housing programs and for reviewing housing elements to determine compliance with State housing law. Census: The official United States decennial enumeration of the population conducted by the federal government. Cormnunity Development Block Grant (CDBG): A grant program administered by the U.S. Department of Housing and Urban Development (HUD). This grant allots money to cities and counties for housing rehabilitation and community development activities, including public facilities and economic development. Condominium: A building or group of buildings in which units are owned individually, but the structure, common areas and facilities are owned byall ownen on a proportional, undivided basis. Density: The number of dwelling units per unit of land. Density usually is expressed "per acre," e.g., a development with 100 units located on 20 acres has deusityof 5.0 units per acre. Density Bonus: The allowance of additional residential units beyond the maximum for which the parcel is otherwise permitted usually in exchange for the provision or preservation of affordable housing units at the same site or at another location. Development Impact Fees: A fee or charge imposed on developers to pay for a jurisdiction's costs of providing services to new development. Appendix A · July 2002 Page 4-Ai CITY OF TEMECULA Housing Element I Development Right: The fight granted to a land owner or other authorized party to improve a property. Such fight is usually expressed in terms of a me and intensity' allowed under existing zoning regulation. For example, a development fight may specify the maximum number of residential dwelling units permitted per acre of land. Dwelling, Multi-family: A building containing two or more dwelling units for the nse of individual households; an apartment or condominium building is an example of this dwelling unit type. Dwelling, Single-family Attached: A one-family dwelling attached to one or more other one-family dwellings by a common vertical wall. Row honses and town homes are examples of this dwelling unit type. Dwelling, Single-family Detached: A dwelling, not attached to any other dwelling, which is designed for and occupied by not 'more than one family and surrounded by open space or yards. Dwelling Unit: One or more rooms, designed, occupied or intended for occupancy as separate living quarters, with cooking, sleeping and sanitary facilities provided within the unit for the exclusive nse of a household. Elderly Household: As defined by HUD, elderlyhouseholds are one- or two- member (family or non- family) households in which the head or spouse is age 62 or older. Element: A division or chapter of the General Plan. Emergency Shelter. An emergency shelter is a facility that provides shelter to homeless families and/or homeless individuals on a limited short-term basis. Fair Market Rent (FMR): Fair Market Rents (FMIRs) are freely set rental rates defined by HUD as the median gross rents charged for available standard units in a county or Standard Metropolitan Statistical Area (SMSA). Fair Market Rents are used for the Section 8 Rental Program and many other HUD programs and are published annually byHUD. First-Time Home Buyer. Defined by HUD as an individual or family who has not owned a home during the three-year period preceding the HUD-assisted purchase of a home. Jurisdictions may adopt local definitions for first-time home buyer programs which differ from non-federally funded programs. Floor Area Ratio (FAR): The gross floor area of all buildings on a lot divided bythe lot area; usually expressed as a numerical value (e.g., a building having 10,000 square feet of gross floor area located on a lot of 5,000 square feet in area has a floor area ratio of 2.0). General Plan: The General Plan is a legal document, adopted by the legislative body of a City or County, setting forth policies regarding long-term development. California law requires the preparation of seven elements or chapters in the General Plan: Land Use, Honsing, Carculation, Conservation, Open Space, Noise, and Safety. Additional elements are permitted, such as Economic Development, Urban Design and similar local concems. Group Quarters: A facility which houses groups of unrelated persons not living in households (U.S. Census definition). Examples of group quarters 'include institutions, dormitories, shekers, military I I I I i I I I I I I I I I I I I Appendix A · July 2002 Page 4-Aii I CITY OF TEMECULA Housing Element I I I I I I I I ! I I i I I I I I I quarters, assisted living facilities and other quarters, including single-mom occupancy (SRO) housing, where 10 or more unrelated individuals are housed. Growth Management: Techniques used by a government to regulate the rate, amount, location and type of development. HCD: The State Department of Housing and Commtmity Development. Home Mortgage Disclosure Act (HMDA): The Home Mortgage Disclosure Act requires hrger lending imtitutions making home mortgage loans to publicly disclose the location and disposition of home purchase, refinance and improvement loans. Institutions subject to HIVIDA must also disclose the gender, race, and income of loan applicants. Homeless: Unsheltered homeless are families and individuals whose primary nighttime residence is a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings (e.g., the street, sidewalks, cars, vacant and abandoned buildings). Sheltered homeless are families and persons whose primary nightt'mae residence is a supervised publicly or privately operated shelter (e.g., emergency, transitional, battered women, and homeless youth shelters; and commercial hotels or motels used to house the homeless). Household: The US Census Bureau defines a household as all persons living in a housing unit whether or not they are related. A single person living in an apartment as well as a family living in a house is considered a household. Household does not include individuals living in dormitories, prisons, convalescent homes, or other group quarters. Household Income: The total income of all the persons living in a household. A household is usually described as very low income, low income, moderate income, and upper income based upon household size, and income, relative to the regional median income. Housing Problems: Defined by HUD as a household which: (1) occupies a unit with physical defects (lacks complete kitchen or bathroom); (2) meets the del'tuition of overcrowded; or (3) spends more than 30% of income on housing cost. Housing Subsidy.' Housing subsidies refer to govemment assistance aimed at reducing housing sales or rent prices to more affordable levels. Two general types of housing subsidy exist. Where a housing subsidy is linked to a particular house or apartment, housing subsidy is "project" or "unit" based. In Section 8 rental assistance programs the subsidy is [inked to the family and assistance provided to any number of families accepted by willing private landlords. This type of subsidy is said to be "tenant based." Housing Unit: A room or group of moms used by one or more individuals living separately from others in the structure, with direct access to the outside or to a public hall and containing separate toilet and kitchen facilities. HUD: See U. S. Department of Housing and Urban Development. Income Category: Four categories are used to classify a household according to income based on the median income for the county. Under state housing statutes, these categories are defined as follows: Appendix A ,. July 2002 Page 4-Aiii CITY OF TEMECULA Housing Element VeryLow (0-50% of County median); Low (50-80% of County median); Moderate (80-120% of County mecli~n); and Upper (over 120% of County median). Large Household: A household with 5 or more members. Manufactured Housing: Housing that is constructed of manufactured components, assembled partly at the site rather than totally at the site. Also referred to as modular housing. Market Rate Housing: Housing which is available on the open market without any subsidy. The price for housing is determined bythe market forces of supply and demand and varies bylocation. Median Income: The annual income for each household size within a region which is defined annually by HUD. Half of the households in the region have incomes above the median and half have incomes below the median. Mobile Home: A structure, transportable in one or more sections, which is at least 8 feet in width and 32 feet in length, is built on a permanent chassis and designed to be used as a dwelling unit when connected to the required utilities, either with or without a permanent foundation. Mortgage Revenue Bond (MRB): A state, county or city program providing financing for the development of housing through the sale of tax-exempt bonds. Overcrowding: As defined by the U.S. Census, a household with greater than 1.01 persons per room, excluding bathrooms, kitchens, hallways, and porches. Severe overcrowding is defined as households with greater than 1.51 persons per mon~ Overpayment: The extent to which gross housing costs, including utility costs, exceed 30 percent of gross household income, based on dam published by the U.S. Census Bureau. Severe overpayment, or cost burden, exists if gross housing costs exceed 50 percent of gross income. Parcel: The basic unit of hnd entidement. A designated area of land established by plat, subdivision, or otherwise legally&fined and permitted to be used, or built upon. Physical Defects: A housing unit lacking complete kitchen or bathroom facilities (U.S. Census definition). Jurisdictions mayexpand the Census defm/tion in defining units with physical defects. Poverty: The income cutoffs used by the Census Bureau to determine the poverty stares of families and unrehted individuals included a set of 48 thresholds. The poverty thresholds are revised annually to allow for changes in the cost of living as reflected in the Consumer Price Index. The average threshold for a family of four persons in 1989 was $12,674. Poverty thresholds were applied on a national basis and were not adjusted for regional, state, or local variations in the cost of liv'mg. Project-Based Rental Assistance: Rental assistance provided for a project, not for a specific tenant. A tenant receiving project-based rental assistance gives up the right to that assistance upon moving from the project. I I I I I I I I I I I I I I I I I Appendix A * July 2002 Page 4-Air CITY OF TEMECULA Housing Element I I I I I I I I I I I I I I I I I I Public Homing: A project-based low-rent housing program operated by independent local public housing authorities. A low-income family applies to the local public housing authority in the area in which theywant to live. Redevelopment Agency: California Community Redevelopment Law provides authority to establish a Redevelopment Agency with the scope and financing mechanisms necessary- to remedy blight and provide stimulus to eliminate deteriorated conditions. The law provides for the planning, development, redesign, clearance, reconstmcfion, or rehabilitation, or any comb'marion of these, and the provision of public and private improvements as may be appropriate or necessary in the interest of the general welfare by the Agency. Redevelopment law requires an Agency to set aside 20 percent of all tax increment dollars generated from each redevelopment project area for the purpose of increasing and improving the community's supply of housing for low and moderate income households. Regional Housing Needs Assessment (RHNA): The Regional Housing Needs Assessment (RHNA) is based on State of California projections of population growth and housing unit demand and assigns a share of the region's furore housing need to each jurisdiction within the SCAG (Southern California Association of Governments) region. These housing need numbers serve as the basis for the update of the Housing Element in each California city and county. Rehabilitation: The upgrading of a building previously in a dilapidated or substandard condition for human habitation or use. Section 8 Rental Voucher/Cextificate Program: A tenant-based rental assistance program that subsidizes a family's rent in a privately owned house or apartment. The program is administered by local public housing authorities. Assistance payments are based on 30 percent of household annual income. Households with incomes of 50 percent or below the area median income are eligible to participate in the program. Service Needs: The particular services required by special populations, typically including needs such as transportation, personal care, housekeeping, counseling, meals, case management, personal emergency response, and other services preventing premature institutionalization and assisting individuals to continue living independently. Small Household: Pursuant to HUD definition, a small household consists of two to four non-elderly persons. Southem California Association of Governments (SCAG): The Southern California Association of Governments is a regional planning agency which encompasses six counties: Imperial Riverside, San Bemardino, Orange, Los Angeles, and Ventura. SCAG is responsible for preparation of the Regional Housing Needs Assessment (RHNA). Special Needs Groups: Those segments of the population which have a more difficult time finding decent affordable housing due to special circumstances. Under Califomia Housing Element statutes, these special needs groups consist of the elderly, handicapped, large families, female-headed households, farmworkers and the homeless. A jurisdiction may also choose to consider additional special needs groups in the Housing Element, such as students, military households, other groups present in their community. Appendix A * July 2002 Page 4-Ay CITY OF TEMECULA Housing Element Subdivision: The division of a lot, tract or parcel of land in accordance with the Subdivision Map Act (California Government Code Section 66410 et seq.). Substandard Housing: Housing which does not meet the minimum standards contained in the State Housing Code (i.e. does not provide shelter, endangen the health, safety or well-belng of occupants). Jurisdictions may adopt more stringent local definitions of substandard housing. Substandard, Suitable for Rehabilitation: Substandard units which are structurally sound and for which the cost of rehabilitation is considered economically warranted. Substandard, Needs Replacement: Substandard units which are structurally unsound and for which the cost of rehabilitation is considered infeasible, such as instances where the majofityof a unit has been damaged by fire. Supportive Honsing: Housing with a supporting environment, such as group homes or Single Room Occupancy (SRO) housing and other housing that includes a supportive service component such as those defined below. Supportive Services: Services provided to residents of supportive housing for the purpose of facilitating the independence of residents. Some examples are case management, medical or psychological counseling and supervision, child care, transportation, and job training. Tenant-Based Rental Assistance: A form of rental assistance in which the assisted tenant may move from a dwelling unit with a right to continued assistance. The assistance is provided for the tenant, not for the project. Transitional Housing: Transitional housing is temporary (often six months to two years) housing for a homeless individual or family who is transitioning to permanent housing. Transitional housing often includes a supportive services component (e.g. job skills training, rehabilitation counseling, etc.) to allow individuals to gain necessary life skills in support of independent living. ' U.S. Department of Housing and Urban Development (HUD): The cabinet level department of the federal government responsible for housing, housing assistance, and urban development at the national level. Housing programs administered through HUD include Community Development Block Grant (CDBG), HOME and Section 8, among others. Zoning: A land use regulatory measure enacted by local government. Zoning district regulations governing lot size, building bulk, placement, and other development standards vary from district to district, but must be uniform within the same district. Each city and county adopts a zoning ordinance specifying these regulations. I I I I I I I I I I I I I I I I I Appendix A - July 2002 Page 4-Avi I HOUSING ELEMENTERRATASHEET Page 4-1, 5th Paragraph: Replace the entire fifth paragraph with the following: "Employment opportunities exist within the City of Temecula, allowing residents to work and live within the City. In 1990, the estimated jobs:housing ratio was about 1.15 jobs per household. Regional estimates predict that ratio will decrease to 1.06 jobs per household by 2005, as the construction of new housing outpaces employment growth." Page 4-5, Table 4.1. Add an additional footnote to the bottom of this table that states: "The 2005 population projections ara based upon the City boundary at the time of the 1990 Census. The City is required to use the 1990 Census baseline. These regionally mandated baseline projections do not include the Vail Ranch annexation." R:\GENPLAN~Housing Element 2000\Errata Sheet.dec City of Temecula P.O. Box 9033, Temecula, CA 92589-9033 Environmental Checklist Project Title 2000 - 2005 City of Temecula Housing Element Update Lead Agency Name and Address City of Temecula P.O. Box 9033 Temecula, CA, 92589-9033 Contact Person and Phone Number David Hogan, Principal Planner (909) 694-6400 Project Location City of Temecula, in Southwest Riverside County. Project Sponsor's Name and Address City of Temecula General Plan Designation Not applicable Zoning Not applicable Description of Project The California State Legislature has identified the attainment of a decent home and suitable living environment for every Californian as the State's major housing goal. Recognizing the important role of local planning programs in the pursuit of this goal, the Legislature has mandated that all cities and counties prepare a housing element as part of their comprehensive General Plan. Section 65302(c) of the Government Code sets forth the specific components to be contained in a community's Housing Element. State law requires Housing Elements to be updated at least every five years to reflect a community's changing housing needs. This update covers the 2000-2005 period, pursuant to the update cycle for jurisdictions within the Southern California Association of Governments (SCAG) region. The Temecula Housing Element was first adopted in 1993 and is currently being comprehensively updated to address existing and projected housing needs. The Temecula Housing Element is comprised of the following major components: · AA analysis of the demographic, household, and housing characteristics and trends; · A review of potential ma/ket, government, and environmental constraints to meeting the City's identified housing needs; · An evaluation of the land, financial and administrative resources available to address housing needs; and, · Identifies the regionally determined Regional Housing Needs Assessment for the City. Surrounding Land Uses and Setting Temecula is located in southwest Riverside County, surrounded by the communities of Murrieta, Fallbrook, Winchester, Rainbow, as well as unincorporated areas of Riverside County. Surrounding land uses include open space, agricultural, residential, commemial, and industrial uses. Other public agencies whose approval California Department of Housing and Community Development is required R:\GENPLAN\Housing Element 2000\Initial Study 2002-draft.doc '1 Environmental Factors Potentially Affected The environmental factors checked below would be potentially affected by this project, involving at least one impact that is a "Potentially.Significant Impact" as indicated by the checklist on the following pages. Land Use Planning Hazards Population and Housing Noise Geologic Problems Public Services Water Utilities and Service Systems Air Quality Aesthetics Transportation/Circulation Cultural Resources Biological Resources Recreation Energy and Mh~iai Resources Mandatory Findings of Significance ," None Determination (To be completed by the lead agency) On the basis of this initial evaluation: ,,. I find that the proposed project COULD NOT have a significant on the environment, and a NEGATIVE DECLARATION will be prepared I find that although the proposed project could have a significant effect on the environment, there will not be a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required I find that the proposed project MAY have a "potentially significant impactn or "potentially significant unless mitigated" impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets, if the effect is a "potentially significant impact" or "potentially significant unless mitigated." An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects (a) have been analyzed adequately in an earlier EIR or NEGATIVE DECLARATION pursuant to applicable standards, and (b) have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required. Printed name ' Date For R:\GENPLAN\Housing Element 2000\Initial Study 2002~raft.doc 2 1. Land Use and Planning. Would the project: Potentially Poten fially Significant Unless Less Than Signifmant MJfigafion Significant No issues and Supporting Information Sources Impact Incorporated Impact impact a. Physically divide an established community? b. Conflict with applicable land use plan, policy, or regulation of an agency with jurisdiction over the project (including, but not limited to the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigation an environmental effect? c. Conflict with any applicable habitat conservation plan or natural community conservation plan? Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. The proposed updated Housing Element will not physically divide an established community or conflict with other local or regional plans. Both the current and proposed housing elements are consistent with the other Elements of the General Plan and applicable local plans. Implementing this program will enhance the City's ability to provide a balance of residential, commercial and industrial opportunities as described in the vision statement for the General Plan. The proposed Housing Element is an integral part of providing a balance of residential opportunities. As a result, no impacts to environment are anticipated. 2. POPULATION AND HOUSING. Would the project: Potentiafiy Potentially Significant Unless Less Than Significant Mitigation Significant No issues and Supporting Information Sources Impact Incorporated Impact a. Induce substantial population growth in an area, either directly (for example, by proposing new homes and businesses) or indirectly (for example, through extension of roads or other infrastructure)? b. Displace substantial numbers of existing housing, necessitating the construction of replacement housing elsewhere? c. Displace substantial numbers of people, necessitating the construction of replacement housing elsewhere? Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. As a result, the programs and actions contained in the proposed updated Housing Element will not induce population growth or new residents to the community beyond those already described in the adopted General Plan. As a result, no additional impacts to environment are anticipated. R:~GENPLAI'AHousing Element 2000\Initial Study 2002-draft.doc 3 3, GEOLOGY AND SOILS. Would the project? Potentially Potentially Significant Unless Less Than Significant Mitigation Significant No Issues and Supporting Information Sources Impact Incorporated Impact Impact a. Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based ,/ on other substantial evidence of a known fault? (Refer to Division of Mines and Geology Special Publication 42.) ii) Strong seismic ground shaking? ,/ iii)Seismic-related ground failure, including liquefaction? ,/ iv) Landslides? ,/ b. Result in substantial soil erosion or the loss of topsoil? ,/ c. Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on- or off-site landslide, lateral ,/ spreading, subsidence, quefaction or collapse? d. Be located on expansive soil, as defined in Table 1801-B of the Uniform Building Code (1994), creating substantial ,/ risks to life or property? e. Have soil incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of ,/ wastewater? Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. All future development within the City will be subject to site-specific geotechnical studies, as appropriate, and will comply with applicable building code regulations. Furthermore, the project sets forth programs and policies to facilitate housing rehabilitation and therefore has the potential to improve the seismic safety of older housing units in the City. As a result, no impacts are expected to occur. R:\GENPLAN~Housing Element 2000\Initial Study 2002~raff,doc 4 4. HYDROLOGY AND WATER QUALITY. Would the project: PotentiaIiy Potentially Significant Less Than Significant Unless Significant No Issues and Supporting information Sources Impact Mitigation Impact Impact a. Violate any water quality standards or waste discharge requirements? ,,' b. Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level (e.g., the production rate ,,- of pre-existing nearby wells would drop to a level which would not support existing land uses or planned uses for : which permits have been granted)? c. Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on- or off-site? d. Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase the rate or amount of surface runoff in a manner which would result ~n flooding on- or off-site? e. Create or contribute runoff water which would exceed the capacity of existing or planned storm water drainage systems or provide substantial additional sources of )olluted runoff? f. Otherwise substantially degrade water quality? ,,' g. Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? h. Place within a 100-year flood hazard area structures which would impede or redirect flood flows? ~. Expose people or structures to a significant risk of loss, ~njury or death involving flooding, including flooding as a result of the failure of a levee or dam? j. Inundation by seiche, tsunami, or mudflow? ,/ Corpments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. All future development within the City will address all applicable drainage, water supply, and water quality issues when specific development projects are proposed. Future development proposals will also be consistent with the adopted General Plan. As a result, no impacts are expected to Occur. R:\GENPLAN\Housing Element 2000\Initial Study 2002-draft.doc 5 5. AIR QUALITY. Would the project: PotentialJy Potentially Significant Unless Less Than Significant Mitigation Significant No Issues and Supporting rnformat[on Sources ~mpact Incorporated Impact Impact a. Conflict with or obstruct implementation of the applicable air quality plan? ,/ b. Violate any air quality standard or contribute substantially to an existing or projected air quality violation? ,/ c. Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is non- attainment under an applicable federal or state ambient ,,- air quality standard (including releasing emissions which . exceed quantitative thresholds for ozone precursors? d. Expose sensitive receptors to substantial pollutant concentrations? ,/ e. Create objectionable odors affecting a substantial number of people? Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. All future development within the City will address air quality and air pollution issues when specific projects are proposed. Future development proposals will also be consistent with the adopted General Plan. As a result, no impacts are expected to occur. 6. TRANSPORTATION/TRAFFIC. Would the project: PotentJatiy Potentially Significant Unless Less Than Significant Mitigation Signit~cant No ~ssues and Supporting Infonmation Sources :Impact incorporated impact Impact a. Cause an increase in traffic which is substantial in relation to the existing traffic load and capacity of the street system (i.e., result in a substantial increase in ,/ either the number of vehicle trips, the volume to capacity ratio on roads, or congestion at intersections? b. Exceed, either individually or cumulatively, a level of service standard established by the county congestion management agency for designated roads or highways? , c'. Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that ,,' results in substantial safety risks? d. Substantially increase hazards due to a design features (e.g., sharp curves, dangerous intersections)? e. Result in inadequate emergency access? f. Result in inadequate parking capacity? ,/ g. Conflict with adopted policies, plans, or programs supporting alternative transportation (e.g., bus turnouts, bicycle racks? R:\GENPLAN\Housing Element 2000\lnigal Study 2002-draft.doc 6 Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously cedified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. Future development proposals will also be consistent with the adopted General Plan. As a result, the approval of the Housing Element will not impact transportation of traffic issues and no impacts are expected to occur. 7. BIOLOGICAL RESOURCES: Would the project: Potentially Potentially Significant Unless Less Than Significant Mitigation Significant No Issues and Supporting Information Sources Impact Inco,'pu,,~lud Impact Impact a. Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in · local or regional plans, policies, or regulations, or by the ,/ California Department of Fish and Game or U.S. Fish and Wildlife Service? b. Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans, policies, regulations or by the California ,/ Department of Fish and Game or US Fish and Wildlife Service? c. Have a substantial adverse effect of federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, vernal .pool, ,/ coastal, etc.) through direct removal, filing, hydrological interruption, or other means? d. interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nurser~ sites? e. Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ,/ ordinance? f. Conflict with the provisions of an adopted habitat Conservation Plan, Natural Community Conservation Plan, or other approved local, regional, or state habitat ,,' conservation plan? Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the . requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. The impacts to biologic issues will be addressed when specific development occurs. Biology studies are required for all development projects with the potential to impact biologic resources. If resources are identified, mitigation measures are identified and implemented to address the site specific effects. In addition, most of the City is located within the Stephen's Kangaroo Rat Habitat Fee Area. Habitat Conservation fees will be required to mitigate the effect of cumulative impacts to the species from R:\GENPLAN~Housing Element 2000\Initial Study 2002-draft.doc 7 urbanization occurring throughout western Riverside County. As a result, the approval of the Housing Etement will not impact biologic resources and no impacts are expected to occur. 8. MINERAL RESOURCES. Would the project: Potentially Potenfially Significant Unless Less Than Significant Mitigation Significant No issues and Supporting Information Sources Impact Incorporated Impact ~mpoct a. Result in the loss of availability of a known mineral resource that would be of value to the region and the ,/ residents of the state? b. Result in the loss of availability of a locally-important mineral resource recovery site delineated on a local ,/ general plan, specific plan or other land use plan? Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. Future development proposals will also be consistent with the adopted General Plan. Therefore, the approval of the Housing Element will not impact mineral resources and no impacts are expected to occur. 9. HAZARDS AND HAZARDOUS MATERIALS. Would the project: Potentially Potentially Significant Unless Less Than Significant Mifigafion Significant No Issues and Supporting information Sources Impact Incorporated impact Impact a. Create a significant hazard to the public or the environment through the routine transportation, use, or ,/ disposal of hazardous materials? b. Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? c. Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or acutely hazardous materials, substances, or waste within one- quarter mile of an existing or proposed school? d. Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result, ,/ would it create a significant hazard to the public or the environment? e. For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles or a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? R:\GENPLAI~Houslng Element 2000\Initial Study 2002-draft,doc 8 9. HAZARDS AND HAZARDOUS MATERIALS. Would the project: Potenfially Pctenfially S~gnificant Unless Less Than Significant Mitigation Significant No ~ssues and Supporting Information Sources Impact Incorporated Impact Impact f. For a project within the vicinity of a private airstrip, would the project result in a safety hazard for people residing or v' working in the project area? g. Impair implementation of or physically interfere with an adopted emergency response plan or emergency. ,/ evacuation plan? h. Expose people or structures to a significant risk or loss, injury or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where ,/ residences are intermixed with wildlands? Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. Approval of the Housing Element will not create hazards or result in hazardous material issues. These issues will be addressed when site specific development proposals are considered. Future development proposals will be consistent with the adopted General Plan. As a result, no impacts are expected to occur. 10. NOISE. Would the project result in: Potenfiarly Potentially Significent Unless Less Than Significant Mitigatior~ Significant No Issues and S up~oo.ffing Information Sources Impact Incorporated Impact Impact a. Exposure of people to severe noise levels in excess of standards established in the local general plan or noise ordinance, or applicable standards of other agencies? b. Exposure of persons to or generation of excessive groundborne vibration or groundborne noise levels? ,/ c. A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the ,/ project? d. A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing ,/ without the project? e. For a project located within an airport land use plan or, where such a plan has not been adopted, within two miles of a public airport or public use airport, would the ,/ project expose people residing or working in the project area to excessive noise levels? f. For a project within the vicinity of a private airstrip, would the project expose people residing or working in the project area to excessive noise levels? R:\GENPLAN~Housing Element 2000\Initial Study 2002-draft.doc 9 Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already' envisioned or contained in the adopted City General Plan. Future development proposals will comply with, and will be consistent with the adopted General Plan. As a result, no impacts are expected to occur. 11. PUBLIC SERVICES: Would the proposal have a substantial adverse physical impacts associates with the provisions of new or physically altered governmental facilities, need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios, response times or other performance objectives for any of the public services: Potentially Poten fially Significant Unless Less Than Significant Mitigation Significant No Issues and Suppor~ng Information Sources Impact Incorporated Impact impact a. F re protection? b. Police protection? c Schools? ,/ d. Parks? e Other public facilities? Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. As a result, the adoption of the housing opportunity program in the Housing Element will have no impacts to public services not otherwise addressed elsewhere in the General Plan. 12. UTILITIES AND SERVICE SYSTEMS: Would the project: Potentially Potentially Significant Unless Less Than Significant Mitigation Significant No Issues and Supporting Information Sources Impact Incorporated Impact Im~aact a. Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? b. Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, the construction of which could cause significant ,/ env ronmental effects? c. Require or result in the construction of new storm water drainage facilities or expansion of existing facilities, the c6nstruction of which could cause significant ,/ environmental effects? d. Have sufficient water supplies available to serve the project from existing entitlements and resources, or are new or expanded entitlements needed? e. Result in a determination by the wastewater treatment )rovider which serves or may serve the proji~ct that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? ~y 2002-draftdoc 10 12. UTILITIES AND SERVICE SYSTEMS: Would the project: Potentiafiy Potendally Significant Unless Less Than Significant Mitigation Significant NO fssues and Supporfing Information Sources Impact Incorporated Impact impact f. Be served by a landfill with sufficient permitted capacity to ,/ accommodate the project's solid waste disposal needs? g. Comply with federal, state, and local statutes and regulations related to solid waste? Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing. Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. As a result, the adoption of the housing opportunity program in the Housing Element will have no impacts to public utilities or service systems not addressed elsewhere in the General Plan. 13. AESTHETICS. Would the project: Potentiafiy Potendally Significant Untess Less Than Significant Mitigation Significant NO Issues and Supporting information Sources Impact Incorporated Impact Impact a. Have a substantial adverse effect on a scenic vista? ,,- b. Substantially damage scenic resources, including, but not limited to, trees, rock outcropping, and historic building within a state 'scenic highway? c. Substantially degrade the existing visual character or quality of the site and its surroundings? ,/ d. Create a new source of substantial light or glare which would adversely affect day or nighttime views in the ,/ area? Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. These issues will be addressed when site specific development proposals are considered. As a result, no aesthetic impacts are expected to occur. R:\GENPLAI'AHousing Element 2000\Initial Study 2002-draft. doc 11 14. CULTURAL RESOURCES. Would the project: Potentially Potentially Significant Unless Less Than Significant Mitigation Significant No Issues and Supporting information Sources Impact Incorporated impact Impact · a. Cause a substantial adverse change in the significance of ,/ a historical resource as defined in Section 1506.57 b. Cause a substantial adverse change in the significance of an archaeological resource pursuant to Section 1506.57 ," c. Directly or indirectly destroy a unique paleontological resource or site or unique geologic feature? d. Disturb any human remains, including those interred outside of formal cemeteries? ," Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. The impacts to cultural resources will be addressed when specific development occurs. When development occurs in an area with a high potential for cultural resources, special studies are required. If resources are identified, mitigation measures are identified and implemented to address any site specific effects. As a result, no impacts to public services are expected to occur. 15. RECREATION. Would the project: Pntentially Pntentially Significant Unless Less Than Significant Mitigation Significant No Issues and Supporting Information Sources Impact Incorporated Impact Impact a. Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the v' facility would occur or be accelerated? b. Does the project include recreational facilities or require the construction or expansion of recreational facilities ,,, which might have an adverse physical effect on the environment? Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. As a result, no impacts to recreational facilities are expected to occur. R:\GENPLAN\Hous[ng Element 2000\Initial Study 2002-draft.doc 12 16. MANDATORY FINDINGS OF SIGNIFICANCE. Potentially Potentially Significant Unles~ Less Than Significant Mitigation Significant No Issues and Supporting information Sources impact Incoi F~,~i~d I,",,p~ut Impact a. Does the project have the potential to degrade the quality of the environmen't, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community, reduce the number of. restrict the range of a rare or endangered plant or animal or eliminate important examples of the major periods of Californ a h story or prehistory? b. Does the project have impacts that are individually limited, but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects? c. Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? Comments: The proposed adoption of the 2000-2005 Housing Element describes how the City will meet the requirements of State law (Section 65302 of the Government Code) to provide adequate opportunities for housing. The proposed Housing Element will update a previously certified Housing Element. Housing elements do not approve specific development projects that are not already envisioned or contained in the adopted City General Plan. As a result, the approval of an updated housing element will not impact the environment in excess of the impacts associated with implementing the General Plan. No impacts to public utilities or service systems are expected to occur. 17. EARLIER ANALYSES. Earlier analyses may be used where, pursuant to the tiering, program EIR, or other CEQA process, one or more effects have been adequately analyzed in an earlier EIR or negative declaration. Section 15063(c)(3)(D). In this case a discussion should identify the following on attached sheets. a. Earlier analyses used. Identify earlier analyses and state where they are available for review. b. Impacts adequately addressed. Identify which affects from the above check list were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. c. Mitigation measures. For effects that are "Less than Significant with Mitigation Incorporated," describe the mitigation measures which were incorporated or refined from the earlier document and the extent to which they address site-specific conditions for the project. The impacts associated with the implementation of the City General Plan were previously identified and discussed in the Draft and Final Environmental Impact Reports in 1993. The Environmental Impact Report for the City General Plan also identified specific general plan level mitigation measures and adopted a statement of overriding consideration for agricultural resources, air quality, biologic resources, education, library, noise, transportation and circulation. R:\GENPLAN\Housing Element 2000\Initial Study 2002-draft.doc 13