City Council Meeting: April 29, 2008

Agenda Item: 8-B

To:                   Mayor and City Council

From:              Eileen Fogarty, Director of Planning & Community Development

Subject:          Discussion of the City’s Draft General Plan Housing Element

 

Recommended Action

Staff recommends that the City Council review and provide direction on the draft 2008-2014 Housing Element as modified by the attached errata sheet prior to the draft’s submittal to the State Department of Housing and Community Development.

 

Executive Summary

This report summarizes the highlights of the Draft Housing Element of the General Plan, which is presented to the City Council for its review and comment prior to submittal to the California State Department of Housing and Community Development (HCD). State Law mandates that all southern California local jurisdictions prepare a Housing Element by June 30, 2008, for the 2008-2014 planning period.  The report summarizes the outreach process, compliance with the City’s Regional Housing Needs Assessment (RHNA) and the Draft Housing Element’s vision, which includes continuing the City’s successful Affordable Housing Production Program, providing housing services for special needs groups and ensuring compatibility with the direction of the pending Land Use and Circulation Element (LUCE).

 

The Draft Housing Element describes the City’s commitment and effective efforts to develop affordable housing against a background of spiraling construction costs, and escalating land values.  It describes how the City’s ability to maintain affordability of existing units is challenged by State-mandated rent control regulations, and uncertainty in federal housing programs, resulting in significantly higher rents in over 50% of the city’s rent controlled units and reductions in Section 8 housing vouchers. The combined effect of these forces is a loss of affordability for lower and middle income households. The Housing Element includes objectives and programs to address this situation, and will be updated and revised prior to submittal to HCD with information contained in three recently released Rent Control Board reports, highlighting the growing need for urgent action to address housing affordability in Santa Monica today.  An additional program to be added to the draft Housing Element will commit the city to investigating new, innovative ways to address the issue of lost housing affordability.

                                                                  

The report includes comments received since the document’s release from members of the public, the Housing and Planning Commissions, the Rent Control Board, and City staff, and proposed revisions are included in an errata sheet attached to this report. After City Council action, the Draft Housing Element will be revised and forwarded for review to HCD. Environmental review in compliance with the California Environmental Quality Act (CEQA) will be conducted concurrently. Staff will return to the Planning Commission and Council for formal action after staff receives HCD’s comments and environmental review is completed, which is anticipated toward the end of the year.

 

Background

Housing and its production are critical to the economic and social well-being and vitality of the community and its residents. Increasingly, the State of California has recognized this situation and has imposed requirements for all jurisdictions to identify and analyze existing and projected housing needs and prepare goals, policies, programs and objectives addressing these needs.  The Housing Element is the only General Plan Element for which State law provides for independent review and certification by the State of California. This Draft Housing Element fulfills all of the State’s Housing Element mandates and also expresses Santa Monica’s long-term commitment to creating a range of housing affordable to its diverse community. It includes discussion of the vision and proposals being developed in the LUCE that focus on providing new housing compatible with the community’s desire that housing be designed as part of complete neighborhoods, providing services and transit within walking distance of residences.

 

The Housing Element was released in February 2008 for public review. It emphasizes the City’s past and continuing commitment to maintaining and developing affordable housing. The City’s successful programs are implemented through the Housing and Economic Development Department, Rent Control Board and the Planning & Community Development Department.  They include:

 

¨       Affordable housing production boosted through on-site requirements to construct affordable units or payment of fees, development incentives for producing affordable housing units and rehabilitation programs (under Goals 2, 5 and 6);

¨       Streamlining the permit approval process while maintaining high architectural standards (under Goal 1);

¨       Assisting and educating renters and landlords, enforcing the Rent Control Ordinance and prosecuting perpetrators of unfair rental practices and discrimination, and maintaining the integrity of the city’s housing stock through Building Code enforcement (programs under Goals 3 and 4).   

 

These programs have been enhanced over the years in response to the community’s needs. Their relevance has steadily increased, particularly in the last 13 years since the State’s adoption of the Costa-Hawkins Rental Housing Act, which mandated vacancy decontrol and has resulted in significant rent increase in over half of the city’s apartments to date (Attachment A, pages 3-27 to 3-30).  Today, the loss of housing affordability has profound impacts on the character and sustainability of the community, which the programs in the draft Housing Element aim to address.

 

Discussion

The following summarizes the main sections of the Draft Housing Element.

 

The Housing Plan

The Housing Plan (Chapter 2) is the heart of the Housing Element.  The chapter begins with a statement of the City’s vision for providing housing that will be affordable to a broader spectrum of the community. It is followed by summaries describing how Santa Monica will comply with its 2008–2014 Regional Housing Needs Assessment (RHNA) allocation (662 units) and describing the city’s housing rehabilitation and services program. The Housing Plan sets forth eight goals, followed by policies and more specific objectives and programs to guide the City towards that vision.  The Housing Plan is also provided in table format (without the policies or background explanation) in the Executive Summary. For purposes of the statutory requirements, the 662 unit RHNA allocation is proposed to be the City’s quantified objective. 

 

The eight goals of the draft Housing Element are:

 

1.     Promote the construction of new housing within the City’s regulatory framework

2.     Encourage the production of housing for all income categories including housing for the community’s workforce

3.     Protect the existing supply of affordable housing

4.     Promote the rehabilitation and continued maintenance of existing housing

5.     Provide housing assistance and supportive services to very low, low, and moderate income households and households with special needs

6.     Eliminate discrimination in the rental or sale of housing on the basis of race, religion, national origin, sex, sexual preference, age, disability, family status, aids, or other such characteristics

7.     Promote quality housing and neighborhoods

8.     Promote the participation of citizens, community groups, and governmental agencies in housing and community development activities

 

Since release of the public draft, the City Council adopted the Action Plan for Addressing Homelessness in Santa Monica in February, which shifts the paradigm for allocating resources to address homelessness in the city. Attachment B includes replacement language for the Housing Plan to reflect this new policy.  Staff is also recommending the addition of a program under Objective 3.a to identify new ways that the city can strive to replace the large number of formerly affordable units that have been lost through market rate rentals due to vacancy decontrol.

 

Vision for Housing and Relationship to the Pending LUCE Update

Preparation of the Housing Element update coincides with the LUCE process, affording the City an opportunity to closely examine and coordinate the issues of community growth, land use, housing, transportation, and community design. In many cases, the community’s vision expressed throughout the extensive LUCE outreach process affirms the appropriateness of continuing most of the existing Housing Element policies, which have succeeded in producing affordable housing and services for populations with special needs. Other goals and objectives that reflect the community’s vision are discussed in the Draft Housing Element.  Land use strategies for additional future residential development will be developed as part of the ongoing LUCE process.

 

Provisional goals for the Land Use and Circulation Element related to housing include:

           

1)     Maintaining and conserving the City’s existing residential neighborhoods, including single-family and multi-family areas. There is strong community desire to preserve and enhance the character and scale that currently exists in these areas.

2)     Continuing the commitment to developing affordable housing, services and programs that support the homeless and other underserved populations.

3)     Promoting sustainable land use and design concepts and green building and landscaping practices.

4)     Exploring a range of housing options downtown and at targeted locations along the City’s major transit corridors.

5)     Planning for future housing as a component of transit-oriented development, which is largely dependent on the outcome of current planning efforts to determine the path and station locations of the planned Expo light rail line.

6)     Exploring ways to address housing affordability for the City’s workforce.

 

Background Data

Chapter 3 of the Draft Housing Element provides a housing needs assessment, including an overview of the City’s population, household and housing characteristics, and an analysis of the community’s housing needs. This assessment serves as a foundation for developing housing objectives and recommendations for allocating City resources in order to meet local housing need and provide a fair share of regional affordable housing.  The data, based in part on the 2000 census and also on more recent City and State sources, includes information about: population characteristics such as household types, income levels, employment, and special needs groups; and housing stock characteristics including age, type, cost and affordability, and assisted housing at risk of conversion.

 

Attachment B includes several data changes proposed for this section in response to comments received since the draft’s release.  In addition, the attachment includes replacement language to reflect the City’s updated information about homelessness in the city.  This data, contained in the Action Plan for Addressing Homelessness in Santa Monica, was obtained through more accurate methodology employed in a survey conducted in January of this year, and is more reliable than the data included in the public release draft.  Other data updates to be included in the draft for HCD review are described in Attachment B (Errata Sheet).

 

Analysis of Potential Constraints

State law requires local jurisdictions to assess whether there are any constraints imposed by local government on the maintenance, improvement or development of housing and to consider removing any such constraints that impede a jurisdiction from achieving its fair share of regional housing need. Constraints caused by non-governmental factors discussed in this chapter include the cost of land, construction costs (which will be updated; see Attachment B), and the availability of mortgage and home construction financing. Potential government constraints address issues of zoning, building code, fees and other requirements that may result in the inability to economically produce housing.  Environmental factors are also discussed and generally concluded to not constitute a constraint to housing production.  Land costs and availability are identified as posing the greatest constraint to providing affordable housing in the city, although over the period of the last housing element, builders still found it feasible to build market rate housing as evidenced by the strength of housing construction activity in Santa Monica.

 

To look more closely at potential governmental constraints, HRA Advisors, Inc. conducted an in-depth study of twelve interim and permanent housing-related ordinances that the City has adopted since the 2000-2005 update, which is summarized in this chapter and included in its entirety in Draft Housing Element Appendix B.  The report concluded that none of this legislation, which was enacted generally for the purposes of ensuring residential compatibility and encouraging more affordable housing production, has constrained the City’s ability to achieve its RHNA allocation as set by the regional authority (the Southern California Associate of Governments, or SCAG).  While this legislation may add procedures or substantive costs, those costs have not prevented the typical housing developer from building housing in the City and this legislation will not prevent the City from achieving its RHNA target.

           

Housing Resources

Expanded analysis and additional data are provided in Chapter 5 (Housing Resources) to demonstrate how the City has been successful and continues to manage productive programs that result in the construction of affordable housing.  This chapter lists the State, Federal and local financial resource programs that the City utilizes for activities including affordable housing production, homeless, senior and disabled services, and assistance for persons with HIV/AIDS.  This chapter also addresses the city’s approach to reducing greenhouse gases as it relates to housing and the City’s compliance with State laws that pertain to housing elements, explaining the city’s compliance in every case with state mandates.  Also discussed are the city’s efforts to help tenants displaced through vacancy decontrol.

 

The Housing Resources chapter also contains the very important demonstration of the City’s compliance with its RHNA allocation, a central requirement of the Housing Element.  The RHNA requirement may be reduced through “credit” given for units that have received building permits since January 2006. Table 5-3 in this chapter demonstrates how projects that have already received discretionary approvals or building permits will provide enough affordable and market-rate housing units to exceed the City’s RHNA allocation in most affordability categories. A complete spreadsheet including project locations and proposed numbers of units is included in Draft Housing Element Appendix D.   City, non-profit and market-rate projects in the pipeline will further boost the production of low and very-low income housing.  Additionally, ongoing regulatory programs such as the Affordable Housing Production Program will continue to promote the development of affordable housing. Also included is an updated inventory of underutilized sites where additional housing units could be built (Table 5-1) based on the same methodology approved by HCD in the City’s previous housing element.  In summary, the City of Santa Monica, with its current zoning, regulations and fees, will easily comply with the RHNA.

 

Review of Previous Housing Element Implementation

Chapter 6 of the Draft Housing Element includes a detailed analysis of each program included in the previous (1998-2005) Housing Element.  The information in this chapter demonstrates that the programs in the City’s current Housing Element have resulted in the rehabilitation and construction of thousands of housing units, support for renters, and services to meet special needs.

 

State Requirement for Housing Element Adoption

The State established June 30, 2008 as the deadline for southern California jurisdictions to complete and adopt their housing elements in the current cycle.  However, the RHNA, which forms the basis for formulating a housing policy that meets state requirements, was not released by SCAG until June 2007 and not finalized by HCD until September 2007.  Given these constraints, staff has worked diligently to complete the Housing Element within the required timeframe.  Following Council’s action, the City will send the document to HCD for its review and concurrently begin CEQA analysis.  HCD has 90 days to complete its review and provide its comments to the City.  In accordance with Santa Monica Municipal Code Sections 9.04.20.18.040 and 9.04.20.18 050, staff will return to the Planning Commission and Council after it receives HCD’s comments and completes the environmental review.

 

Consistency with Other General Plan Elements

The City of Santa Monica’s General Plan contains eight elements[1], which must be consistent with one another in their goals and programs. The proposed Draft Housing Element would replace the City’s current Housing Element, which was updated in 2003.  The development of the housing element is timed with a twenty-year update of the Land Use Element, which is due to be released in draft form in early May.  As such, efforts have been made to ensure that this Draft Housing Element is generally consistent with the City’s existing land use element, as well as other General Plan elements, and that it is consistent with the general direction proposed in the LUCE update.  Chapter 1 includes discussion of the Housing Element’s consistency with other city General Plan Elements and policies.

 

The Housing Element’s purpose is to articulate the needs and programs that will promote the City’s ability to meet its housing needs, including its fair share of regional development as determined in the RHNA.  The proposed Draft Housing Element reiterates the city’s ongoing commitment to providing high quality housing for its residents, maintaining and building new affordable housing, addressing issues of homelessness, meeting special housing needs, implementing the Rent Control ordinance, and ensuring that additional housing units added to the city’s housing stock are compatible with existing neighborhoods and are in proximity to neighborhood services in order to promote sustainability and healthy living objectives.  This direction is compatible with other City General Plan Elements.

 

Planning & Community Development is currently focusing efforts on developing a strategy to create housing options to accommodate diverse lifestyles in proximity to improved transit access.  Staff is also analyzing information to develop a program to produce housing that is affordable to a larger band of the City’s workforce. These policies, which are principally being undertaken in the LUCE process, require additional analysis and review under CEQA and are referenced in the Draft Housing Element for consistency.  It is possible, given the timelines of the two projects, that more detailed description of these policies may be added to the final Housing Element when it returns for formal review and adoption.

 

Commission Action

Presentations were made to the Planning Commission, Housing Commission and Rent Control Board at the outset of the Housing Element’s preparation.  Staff presented the Public Review draft to these bodies in March 2008 and the following comments and recommendations were received.  Responses to these comments and to those received from the public (see below), have either been incorporated into Attachment B, or may be included in the draft for HCD review, pending Council direction.

 

Planning Commission

The Planning Commission reviewed the Draft Housing Element at a public hearing on March 19, 2008.  The Commission requested that staff review and/or include the following:

 

¨      The accuracy of data for the population estimate, building cost per square foot, and school enrollment figures.

¨      Clarify data on new housing (new units built versus net new units to reflect the number of units demolished).

¨      Include more Rent Control data including information on occupants of rent control units and the impact of market rate rent adjustments. 

¨      Add a definition for congregate care; include more data and a goal to meet the community’s future need for congregate care.

¨      Add a goal to the Housing Plan to address the jobs-housing imbalance and to better match income and housing affordability for Santa Monica’s residents.

¨      Place a stronger emphasis on the need to strengthen the policies supporting the Section 8 housing program.

¨      Ensure that the document is consistent with amendments being considered to the Green Building Ordinance.

¨      Recognizing that Santa Monica has an older housing stock that must be rehabilitated or replaced, the Element should address the way in which that housing is regenerated with respect to the placement of housing and transportation connections.

¨      Consider where the Element can include more commitment to the City’s wider sustainability objectives.

¨      Provide more detailed description and analysis of a program to provide workforce housing, emphasizing its connection with long-term sustainability.

¨      Ensure that there is strong language about maintaining the city’s existing affordable housing, in addition to creating new affordable units.

¨      Consider the impact that Proposition 98 might have on the city’s ability to produce affordable housing should that measure be approved by State’s voters.

 

Housing Commission

Planning staff presented the Draft Housing Element to the Housing Commission at a public hearing on March 13, 2008.  Following extensive discussion, the Housing Commission unanimously voted to support the Draft Housing Element and asked that attention be paid to:

 

¨      Opportunities for strategies to support affordable housing

¨      Parking reduction for affordable housing and housing near transit

¨      Refining the methodology for counting the homeless population, and in particular the concern that the Latino homeless population has been undercounted.

 

Rent Control Board

Planning staff presented the Draft Housing Element to the Rent Control Board (RCB) at a public hearing on March 13, 2008.  The RCB held further discussion at its April 3 meeting and had generally positive comments, noting that they are pleased that the City will be able to meet the RHNA allocation established by SCAG.  However, the RCB is very concerned about the findings of the nine-year report on “The Impact of Market Rate Vacancy Increases,” which was presented to the Board on April 3 and has been forwarded to the Planning Commission and City Council.  The report data indicate that 14,672 units have now been rented at market rate, including 9,860 units that previously had rent levels affordable to low-income households (80% of the median family income for a family of four).  Included within the 9,860 units were 6,044 units that had rent levels affordable to very-low income families (60% of MFI).  The RCB requested that the Housing Element address this issue by including a program to identify new ways that the city can strive to replace the large number of formerly affordable units that have been lost through market rate rentals due to vacancy decontrol. As referenced earlier in this report, this program is recommended to be added under Objective 3.a of the Housing Plan.

 

The RCB’s annual report, also released for the April 3 meeting, contains updated rental cost information that staff will use to update the information in the Housing Element in order to better reflect the current affordability gap.

 

Public Outreach

Community and Inter-departmental Participation in the Development of the Housing Element

The draft Housing Element has been developed with community input through many outreach efforts either specifically associated with the Housing Element process or in conjunction with development of the Land Use and Circulation Element (LUCE), which included many opportunities for participation on issues related to housing over the last three years.

 

While the Planning & Community Development Department (PCD) has taken the lead role in developing the Draft Housing Element, PCD has worked with staff members that implement housing-related programs in the City’s Housing and Economic Development Department, Community and Cultural Services Department, and Rent Control Board.  Staff from each of these agencies, in addition to the City Attorney’s office, has contributed to the research and review of this document.

 

A Special Meeting to discuss the Housing Element’s direction and the RHNA was held for the Affordable Housing community on December 14, 2007. Invitations were sent to thirty-six housing developers, advocates, and service providers (Draft Housing Element Appendix C).  In addition to staff from various City departments, representatives from the following agencies attended the meeting and provided input:

 

   Venice Family Clinic

   Step Up on Second

   Community Corporation of Santa Monica (CCSM)

   OPCC

   CLARE Foundation

 

Since the Public Review Draft was released in February, comments have been received and staff has incorporated them into Attachment B.

 

Community Input Through the LUCE Process

The LUCE process began in 2004 and has involved a substantial amount of community outreach and engagement. Opportunities for residents to recommend strategies, review and comment upon land use and housing issues and discuss new opportunities for housing were an important component of the LUCE update.  For example, in the initial visioning workshop, the need for housing that is affordable to a wide range of incomes emerged as one the community’s greatest concerns, and was reflected in the Emerging Themes.  In 2007, the LUCE “Placemaking” workshops looked at ways to preserve existing neighborhood character and focused on nearby commercial areas that might have potential to become mixed-use neighborhood centers where more affordable or “workforce” housing might be built with access to nearby services and transportation options. In addition, potential for new residential/mixed-use neighborhoods was a focal topic in the Industrial Lands Workshops, which were attended by over 250 community members. City staff received important input at these and other workshops that was taken into consideration in formulating the goals and objectives of the Housing Element.  In addition to its emphasis on programs to meet more immediate housing needs, the Draft Housing Element is consistent with the LUCE vision for future housing opportunity areas.  However, the Draft Housing Element does not include specific proposals for location of new housing areas; that determination will be made in the LUCE.

 

Public Notice and Summary of Comments Received

Notification of release of the Draft Housing Element was published in the Santa Monica Daily Press on February 15, 2008, and copies have been available at the Planning Division’s public counter and all branch libraries.  Electronic notification was provided to housing providers and advocates and to adjacent jurisdictions and the SMMUSD.  In addition, an electronic version of the document has been available since February 15 at the Planning Division website at http://www.smgov.net/planning/whats-new/index.html and has also been linked to the Land Use and Circulation Elements website, www.shapethefuture2025.net.

 

A notice was published in the Santa Monica Daily Press regarding this Council hearing on April 18, 2008, and notification was sent to interested parties by mail and e-mail.

 

The following comments were received from various members of the public in regard to the Draft Housing Element. Copies of communications received are included in Attachment C:

 

·        The city is planning to build too much housing and it is questionable whether the city should be participating in building workforce housing for families with relatively high incomes.

·        Unit size (number of bedrooms) should be diversified within affordable housing projects to ensure diversified population and equal opportunity.

·        The Section 8 program is at serious risk, and will be more at risk if voters approve Proposition 98, and serious attention should be paid to this.

·        Section 8 tenants need to have access to relocation fees.

·        The City needs to be very concerned about the disaster of owner opt-out from the Section 8 program.  Alternative programs and preventative measures are needed to avert a surge of new homelessness that would result.

·        Construction costs are higher than the figure included in the HE.

·        The fees in Table 4-6 omit water meters, and new projects must include separate domestic and irrigation meters and a third meter for fire sprinklers, if required, for which the fee exceeds $10,000.

·        The Draft Housing Element does not mention co-housing (an emerging model of housing co-ownership with an emphasis on communal space and sustainable design), and the City should consider whether co-housing is something that should be encouraged.

 

Environmental Analysis

An initial study will be conducted to determine the proper level of environmental analysis for the draft Housing Element under the California Environmental Quality Act (CEQA).  The initial study will result in either a negative declaration, mitigated negative declaration, or a full or limited environmental impact report (EIR).  Community noticing and meetings as required by CEQA will be scheduled as the environmental analysis progresses.

 

Financial Impacts & Budget Actions

Preparation of the Housing Element and related environmental review are included in the FY2007-2008 budget.  Accordingly, there are no financial impacts associated with the recommended action.   

 

 

 

 

Prepared by:

Elizabeth Bar-El, AICP, Senior Planner

 

Approved:

 

Forwarded to Council:

 

 

 

 

 

Eileen Fogarty, Planning & Community Development Department

 

P. Lamont Ewell

City Manager

ATTACHMENTS:

 

A.     Link to the Draft Housing Element (electronic version) HARD COPIES WERE PROVIDED TO THE COUNCIL IN FEBRUARY.

B.     Errata Sheet with proposed changes to include in the Housing Element HCD Review Draft

C.    Comments Received on the Draft Housing Element


ATTACHMENT A

 

Link to the Draft Housing Element (electronic version)

 HARD COPIES WERE PROVIDED TO THE COUNCIL IN FEBRUARY

 


ATTACHMENT B

 

Errata Sheet with proposed changes to include in the Housing Element HCD Review Draft

 


Draft Housing Element Errata Sheet

 

 

The following are proposed revisions to the Public Review Draft Housing Element, February 2008. Changes to the policies, programs, and text reflect response to comments provided by the Housing Commission and Rent Control Board on March 13, 2008 and the Planning Commission on March 19, 2008. Changes also reflect response to comments received from the general public, service agencies, and City staff during the public comment period.

These changes will be incorporated into the Draft Housing Element prior to its submittal to HCD on or before June 30, 2008.

Additional minor edits, typos and grammatical changes may be made to the document before it is submitted to HCD and is not reflected in the errata listed below.

Changes to policies and text are presented in underline/strikeout.

1.   Updated information on construction costs in the City requested.

Updated construction costs for 2008 based on information compiled by the City’s Housing & Economic Development Department will be included in the Draft Housing Element as follows:

·         Multi-family construction: $239/square foot

·         Development costs for a 2 bedroom apartment is $523,000 per unit.

·         Of that, $233,000 is hard costs related to construction.

2.   More information on congregate care facilities and a definition should be included in the Final Housing Element.

For the purpose of background information and to give a more complete picture of housing in the city, information on congregate care facilities in the city will be included in an appropriate location within Chapter 5: Housing Resources.  A definition will be included in the Glossary of Terms

3.   Page 3-54: Question regarding apparent inconsistency between data on the number of education-related jobs in the city.

Table 3-9 and 3-10 – Language will be added to clarify the composition of job reporting categories in data produced by the State EDD as compared to the City’s data on principal employers. The State EDD Labor Market data classifies the school district and Santa Monica College under local government. In addition, there are minor discrepancies due to the fact that the EDD data is average for the quarter, and the profile that the City collects of principal employers is a self reporting “snapshot” at the end of the fiscal year, June 30.

The Housing Element will be updated with 2007 data for Table 3-9 and 3-10 (below) and a footnote will be added.

Table 3‑9     Establishments per Industry Type and Average Employment, 2007

Establishment

# of
Establishments

Average
Employment

Agriculture, Forestry, Fishing & Hunting

6

11

Mining

1

***

Utilities

6

281

Construction

227

2,607

Manufacturing

105

1,056

Wholesale Trade

230

2,355

Retail Trade

648

9,781

Transportation & Warehousing

29

359

Information

619

7,754

Finance & Insurance

258

3,155

Real Estate & Rental & Leasing

392

3,268

Professional, Scientific, & Technical Services

1,217

11,659

Management of Companies and Enterprises

22

604

Admin & Support & Waste Mgmt & Remediation

230

2,636

Educational Services

85

2,359

Health Care & Social Assistance

843

8,368

Arts, Entertainment, & Recreation

600

2,128

Accommodation & Food Services

377

11,183

Other Services

362

3,382

Non-Classified

2

**

Federal Govt

6

283

State Govt

1

15

Local Govt***

49

6,279

TOTAL

6,315

79,525

SOURCE:     State of California EDD Labor Market Information, 2008, Based on reported data only

**Data suppressed by EDD for confidentiality

*** Includes City of Santa Monica, SMMUSD, SMC

 

Table 3‑10   Principal Employers, 2007

Employer

Number of Jobs Provided

Santa Monica College

2,517

City of Santa Monica

2,177

Santa Monica-Malibu Unified School District

1,650

Saint John’s Hospital Medical Center

1,543

Santa Monica-UCLA Hospital

1,350

MTV Networks

1,060

RAND Corporation

862

Activision

800

ET Whitehall

750

Symantec Corporation

720

Yahoo

477

First Federal Bank

618

Rubin Postaer & Associates

450

Loews

440

King World Productions, Inc.

400

Crossroads School

361

Total

15,814

SOURCE:     Economic and Demographic Profile, City of Santa Monica Economic Development Division. June 2007

 

4.   Page 3-26: How is the current downturn in the housing market affecting Santa Monica?

      The following home sales data was registered for February 2008, indicating reduced sales prices.  Data for the first quarter, when available, will be reviewed and included in the revised draft Housing Element.

 

February 2008

Single Family Homes

 

Condos

Community Name

ZIP Code

Sales of Single Family Homes

Price Median SFR ($1,000)

Price % Chg from Feb 2007

Sales Count Condos

Price Median Condos ($1,000)

Price % Chg from Feb 2007

Median Home Price/ Sq. Ft

Santa Monica

90401

n/a

n/a

n/a

5

$608

-37.7%

n/a

Santa Monica

90402

5

$2,360

-30.9%

3

$960

-40.0%

$1,364

Santa Monica

90403

1

$2,699

n/a

9

$471

-47.4%

$1,335

Santa Monica

90404

n/a

n/a

n/a

8

$665

3.2%

n/a

Santa Monica

90405

7

$1,170

6.5%

4

$657

-21.8%

$732

 

County/City/Area

# Sold

2007

2006

% Change
Yr-to-Yr

Santa Monica

623

$910,000

$884,500

2.88%

Los Angeles County

62,316

$530,000

$515,000

2.91%

SOURCE: DataQuick

 

 

5.   Provide updated information on rent control and the loss of units related to Costa Hawkins.

More recent information provided in The Impact of Market Rate Vacancy Increases Nine-Year Report, prepared by the Santa Monica Rent Control Board, March 20, 2008, will be used to update the text on Pages 3-27 and 3-28.

In addition, a program will be added to the Housing Plan as follows:

New program to be added under Objective 3.a on pages x and 2-12/13: The City will identify additional mechanisms to maintain and/or restore the affordability of more existing units in response to the loss of more than 14,600 formerly affordable units that have been rented at market-rate as of 2007.

Responsible Division: Housing Division (lead); Rent Control Agency

6.   Page 3-29: Include more detailed information on Workforce Housing

Details on the approach to Workforce Housing are being developed through the LUCE process but are not yet available to include in this draft of the Housing Element. The Final Housing Element will be updated with information available at that time.

7.   More discussion on demolitions and the recycling of the city’s housing stock should be included.

New available information included in The Impact of the Ellis Act: January-December 2007, published by the Rent Control Board in April 2008, will be included on pages 3-27 and 3-23 in the Draft Housing Element.

8.   Additional/Revised Information on the City’s Sustainability Programs:

The following text will be revised:

Page 2-18

Objective 7.b

Program Background:

The City also requires all new construction to comply with Title 24 of the Uniform Building Code regarding water and energy conservation

This program is not necessary as the activity described is legally required.

Program

Change last sentence to read: “Reduce residential and commercial water use 20 percent by 2010 and reduce the overall energy usage in the City. Continue to reduce city-wide water and energy use in accordance with the goals and targets set out in the Sustainable City Plan.

Since this policy is set out in the Sustainable City Plan and subject to change, it is recommended to reference the SCP rather than include current language in the Housing Element.  California Energy Commission’s proposed targets for Title 24 are for net zero grid energy-using buildings – residential by 2020 and commercial by 2030. While this is not yet law, it is an aggressive policy which is consistent with goals set out for Solar Santa Monica.

Page 2-19

Objective 7.c

Program Background

Point of Clarification: The first Commercial Green Building Guidelines were adopted in 1999, before the 2003 adoption of the Sustainable City Plan. The Residential guidelines were finalized in 2004.

Remove this sentence: “ Multi-family projects registered for certification under the LEED Green Building Rating System receive expedited plan checks and financial incentives.

Replace: “Projects pursuing certification under the LEED green building rating system receive expedited processing through City departments.

Program:

Continue to offer incentives to encourage green building and investigate new ways that green building might be incentivized. Continue to improve relevant sections of the Municipal Code to support improved environmental performance of newly constructed buildings. Continue green building incentives and requirements in accordance with the goals and targets set forth in the Sustainable City Plan.

Page 5-7

E.1 Energy Independence/Renewable Energy Use

Add the following paragraph after the paragraph that begins “As an indicator to monitor implementation”

In March 2006, the Community Energy Independence Initiative was approved by Council. The program, now known as Solar Santa Monica, aims to provide solar energy on every feasible rooftop in the city by 2020, while also reducing total energy use by combining energy efficiency measures with the solar power. While the California Energy Commission has set forth a goal of having all newly constructed residential buildings be net zero grid energy users by 2020, the Solar Santa Monica program addresses existing buildings in the city as well.

Page 5-8

E.2 Greenhouse Gas Emissions Reduction

Remove the paragraph that begins “Current climate models were developed to analyze…” and replace with the last two paragraphs below:

2. Greenhouse Gas Emissions Reduction

Greenhouse gases are components of the atmosphere that contribute to the greenhouse effect. The natural greenhouse effect allows the earth to remain warm and sustain life. Greenhouse gases trap the sun’s heat in the atmosphere, like a blanket, and influence the climate. Examples of greenhouse gases include carbon dioxide, methane, nitrous oxide, and fluorinated gasses. The increased consumption of fossil fuels (wood, coal, gasoline, etc.) has substantially increased atmospheric levels of greenhouse gases. New housing development may contribute to greenhouse gas emissions, but careful site planning and design, and the selection of environmentally friendly building materials and equipment can significantly reduce these emission levels.

NO CHANGE TO AB 32 BULLET POINTS

Remove the paragraph that begins “Current climate models were developed to analyze…” and replace with the last two paragraphs below:

Current climate models are available to analyze climate change on a global scale and to analyze greenhouse gas emissions at the local scale. There are established standards for measuring and reporting a community’s greenhouse gas emissions and the methodology for calculating greenhouse gas emissions is standardized and widely used.

The City has calculated its municipal and community-wide greenhouse gas emissions for 1990, 1995 and 2000. The City of Santa Monica is a founding member of the California Climate Action Registry and beginning in June 2008, will measure, verify, and publicly report GHG emissions annually. The City’s green house gas emissions reduction targets include a 30% reduction in green house gas emissions below 1990 levels by 2015 for municipal operations and a 15% reduction in green house gas emissions below 1990 levels by 2015 city-wide.

Remove the paragraph that begins “Current climate models were developed to analyze…”

Page 5-8

E.3 Increasing Energy Education

Remove all mention of the Community Energy Independence Initiative and replace with the name “Solar Santa Monica program”. Replace “www.smgov.net/epd/” with “www.solarsantamonica.com”

9.      Revised Homelessness Discussion and Programs

The following text will be revised:

Page 2-4, Replacement of second bullet under Housing & Supportive Services

Homeless Services: Continue to support between eight and ten agencies that provide over 20 programs that serve the homeless and at-risk individuals. These include emergency, transitional and permanent supportive housing opportunities. The City of Santa Monica has made the reduction of street homelessness a high priority. The city is focusing its efforts on the most chronic and vulnerable of the homeless population that were identified through a direct survey of the street population in January 2008. The city is also developing strategies to identify new homeless individuals in Santa Monica and link persons not first-homeless in Santa Monica with services near their communities of origin.

Focus efforts on the priority populations defined in the adopted Action Plan for Addressing Homelessness in Santa Monica: the 110 most chronic and vulnerable of the homeless population living on the streets of Santa Monica; persons whose last permanent address is in Santa Monica; and vulnerable members of Santa Monica’s workforce. On an annual basis, the City supports agencies that provide supportive services, emergency shelter, and transitional and permanent supportive housing beds to Santa Monica’s priority homeless populations. The City is also developing strategies to identify new homeless individuals in Santa Monica and link persons not first-homeless in Santa Monica with services near their communities of origin.

Continue to implement the Senior Homeless Prevention and Rental Assistance Program. Funded entirely by Santa Monica Redevelopment Agency 20% housing set-aside funds, the Santa Monica Housing Authority implemented the Senior Homeless Prevention and Rental Assistance Program in January 2007. The program provides rental assistance vouchers and homeless prevention grants to homeless residents 55 years old and older who are actively being assisted by case management services provided by community-based nonprofit service providers, including St. Joseph Center, OPCC, and WISE Senior Services. In addition, seniors at risk of being evicted, through no fault of their own, are eligible for a one-time eviction prevention grant of $2,000. A number of seniors receive both prevention grants and rental assistance vouchers.

Page 2-1 Program Background 2j

The City of Santa Monica has made the reduction of street homelessness a high priority. The city is focusing its efforts on the most chronic and vulnerable of the homeless population. The city is also developing strategies to identify new homeless individuals in Santa Monica and link persons not first-homeless in Santa Monica with services near their communities of origin. On an annual basis, the City supports between eight and ten agencies that provide over twenty programs that serve the homeless and at-risk individuals. These include emergency, transitional and permanent supportive housing opportunities

The City’s “Action Plan for Addressing Homelessness in Santa Monica,” adopted in March 2008, has made the reduction of street homelessness a high priority. The City is focusing its efforts on the priority populations defined in the Plan: the most chronic and vulnerable of the homeless population living on the streets of Santa Monica; persons whose last permanent address is in Santa Monica; and vulnerable members of Santa Monica’s workforce. On an annual basis, the City supports agencies that provide supportive services, emergency shelter, and transitional and permanent supportive housing beds to Santa Monica’s priority homeless populations. The City is also developing strategies to identify new homeless individuals in Santa Monica and link persons not first-homeless in Santa Monica with services near their communities of origin.

Program 2j for page 2-11 and for the corresponding section on page x in the Executive Summary:

Continue to seek and leverage funds that contribute to the development of a range of permanent, supportive housing, within and outside of Santa Monica. Focus case management and housing resources on the most chronic and vulnerable homeless individuals that have been identified as the top priority for accessing permanent supportive housing.

     Continue to seek and leverage funds that contribute to the development of a range of permanent, supportive housing options, within and outside of Santa Monica;

     Focus case management and housing resources on the 110 most chronic and vulnerable homeless individuals that have been identified as the top priority for accessing permanent, supportive housing;

     Continue to serve other priority homeless populations through city-funded programs.

     Develop strategies to link those not first-homeless in Santa Monica with services near their communities of origin.

     Review City policy and practices that may contribute to homelessness.

Page 2-15: Policy 5.4:

Offer housing assistance to homeless individuals with a continuum of care model to address all issues related to homelessness (i.e., emergency, transitional and permanent housing linked with case management, employment, health and mental health, substance abuse, etc.)

Match housing and supportive service resources to the needs of priority homeless populations: Santa Monica’s chronically homeless; those whose last permanent address was in Santa Monica; and vulnerable members of Santa Monica’s workforce.

Page 2-16 and page xi of Executive Summary: Program 5b:

Continue to implement a coordinated case management program linking homeless individuals with housing, employment, and other support services. Quantified objectives for many of the City’s services are discussed in Section 3: Housing and Supportive Services.

Continue to fund supportive services that serve the priority homeless populations, striking a balance between existing programs that have demonstrated effectiveness and national best practices that are consistent with the City’s adopted Action Plan to Address Homelessness in Santa Monica. Quantified objectives for many of the City’s services are discussed in Section 3: Housing and Supportive Services.

Pages 3-16 to 3-18, Homeless Persons

End of first paragraph: Amend the last sentence: The regional nature of the homelessness problem makes it challenging for Santa Monica to define and serve its fair share of the homeless population.

The data is collected by sub-regions of the County, and provides a general overview of the homeless situation in West Los Angeles. According to LAHSA, the West Los Angeles Service Planning Area (SPA 5), which includes the City of Santa Monica, Culver City, Beverly Hills, Malibu, and West Los Angeles, has an estimated 6,703 point-in-time homeless individuals. This translates into approximately 13,318 persons that are projected to be homeless per year (Table 3 16). The majority of these homeless individuals are men between the ages of 25 to 55. In addition, LAHSA directly counted 661 homeless persons on Santa Monica’s streets, and estimated that there were 73,702 homeless persons throughout the County on any given night

(Table 3 17).

In Santa Monica, 962 persons, or 64 percent of the total estimate for the City, were counted as the result of direct enumeration (with some extrapolation), as compared to only 35 percent of the County total.

Of these 962 persons, 69 percent were on the streets and 31 percent were in shelters, roughly mirroring the situation countywide (Table 3-17).

Table 3 16           

Total Adjusted Count        66,840a           1,506

a    66,840 is the total number excluding people in Glendale, Pasadena and Long Beach, which have their own continuums of care and did not participate in the 2007 Greater Los Angeles Homeless Count. Number from Glendale, Pasadena, and Long Beach were gathered from each respective City’s continuums of care enumeration.

Based on the total estimate (direct enumeration and adjustments) of 1,506 homeless persons, Santa Monica has the following:

   2.04 percent of the County’s homeless population, but only 0.88 percent of the County’s population as a whole

   22 percent of the homeless population for SPA 5, but only 14 percent of the total population for the SPA

The Urban Institute studied the situation for homeless people in Santa Monica who have an active case at a Santa Monica Assistance Agency. The 2006 Urban Institute study produced two estimates: (1) for a single day, taking the last day in the fiscal year (June 30, 2006) and (2) for the whole fiscal year of July 1, 2005, through June 30, 2006. Results revealed that Santa Monica homeless assistance agencies had about 1,900 people in their client data system on June 30, 2006, and approximately 5,600 homeless people on their caseloads during the course of the previous year. The Urban Institute estimated that there were 900 additional homeless persons each day and 5,200 homeless persons each year who were served by a Santa Monica service provider. These additional individuals may not all physically be in Santa Monica, but have accessed City funded services.

Homeless Population Profile

Based on the Urban Institute’s count of 4,807 heads of household homeless in Santa Monica, whether or not their homelessness originated in another location or in Santa Monica itself, who received services during the fiscal year 2005-2006, the following statistics provide a general profile for this homeless population:

   Approximately 60 percent were men and 40 percent were women.

   90 percent include only one single adult, seven percent include at least one child, two percent are couples without children, and less than one percent are unaccompanied youth.

   Approximately 56 percent of homeless households are between the ages of 35 and 54, indicating that on average, homeless people in Santa Monica are about 10 years older than typical single adults nationally (of whom over 60 percent are between 25 and 44 years of age).

   Approximately 15 percent of homeless households are 55 years and older. Compared to national statistics, this is approximately twice the proportion of homeless seniors, which appears to be a growing trend at least in California communities with very high real estate values.

The majority of homeless people (53 percent) are white, 36 percent are African-American, and the remaining 11 percent are of other or mixed race(s), of these 14 percent are Hispanic (of any race).

In light of this, the City of Santa Monica is adopting “best practice” approaches to addressing homelessness. These approaches have been outlined in an “Action Plan to Address Homelessness in Santa Monica” which was adopted by the Santa Monica City Council in February 2008. The Plan contains 50 action steps in the areas of services, housing, community education, public policy, regional collaboration and program evaluation. The explicit goal of the plan is a reduction of street homelessness through focusing resources on priority populations: Santa Monica’s chronically homeless; those whose last permanent address was in Santa Monica; and vulnerable members of Santa Monica’s workforce.

One of the “best practice” approaches proposed in the plan is the creation of a Service Registry of the most long-term and vulnerable homeless individuals living on Santa Monica’s streets. The goal of the Service Registry is to enumerate and gather quality data to shape service delivery to this priority population. This data contrasts with other available data compiled countywide by the Los Angeles Homeless Services Authority (LAHSA), which the city has found to have a high margin of error when extrapolated for a relatively small jurisdiction such as Santa Monica. It is particularly problematic to apply LAHSA’s methodology in Santa Monica because the homeless population characteristics in Santa Monica differ in many respects from the general countywide characteristics.

To collect baseline data for the highest areas of homeless concentration in the city, over 50 volunteer staff from the City and homeless service organizations conducted a count in the early morning of January 25, 2008, and found 277 individuals sleeping outside. The baseline count was followed by three days of early morning surveying using a vulnerability index, developed by a Boston physician to identify individuals at a higher risk than others for dying if they remain on the streets. 261 surveys were administered, and 110 individuals met at least one high-risk criterion from the vulnerability index. The findings of the survey highlight the needs of the 110 most vulnerable individuals:

     Average age was 55 years,

     Average length of time homeless was 11 years, 30% were homeless more than 15 years;

     77% were male;

     31% were veterans;

     95 (86%) reported either a mental health or substance abuse issue, or both:

-     21 reported a mental illness only,

-     14 reported a substance abuse issue only,

-     60 reported both a mental health and substance abuse issue.

Based on their needs, the 110 most vulnerable individuals will be assigned to homeless services providers for priority access to intensive case management, supportive services, shelter beds and permanent housing resources. Others in the priority populations will receive services through city-funded programs, and the city is developing strategies to identify new homeless individuals in Santa Monica and link persons not first-homeless in Santa Monica with services near their communities of origin.

Page 5-3: Under the Homeless Services bullet:

Social service and support programs for the homeless in Santa Monica include the following:

Social service and support programs for the priority homeless populations in Santa Monica include the following:

Page 5-5:

The City of Santa Monica has made the reduction of street homelessness its highest priority. The city is focusing its efforts on the most chronic and vulnerable of the homeless population, and developing strategies to link newly homeless individuals who were first-homeless in other jurisdictions with services near their communities of origin. Funding recommendations in the City’s 2007-2010 Community Development plan are consistent with this priority, although refinements to the system of homeless service delivery may be phased in over the three year funding term, consistent with stakeholder input.

The City’s Action Plan for Addressing Homelessness in Santa Monica has made the reduction of street homelessness a high priority. The City is focusing its efforts on the priority populations defined in the Plan: the most chronic and vulnerable of the homeless population living on the streets of Santa Monica; persons whose last permanent address is in Santa Monica; and vulnerable members of Santa Monica’s workforce. On an annual basis, the City supports agencies that provide supportive services, emergency shelter, and transitional and permanent supportive housing beds to Santa Monica’s priority homeless populations. Funding recommendations in the City’s 2007-2010 Community Development plan are consistent with the priorities and action items outlined in the Plan, although refinements to the system of homeless service delivery may be phased in over the three year funding term, consistent with stakeholder input.

10. Additional Maps

Two additional maps/figures will be added to the document.

1.      Publically Assisted Affordable Housing: Figure 3-10

2.      Homeless registry—Figure 3-7

Please note: Senior Household map will be renumbered: Figure 3-8

 


ATTACHMENT C

 

Comments Received on the Draft Housing Element

Electronic version of attachment is not available for review.  Document is available for review at the City Clerk’s Office and the Libraries.

 

 



[1] Land Use, Circulation, Conservation, Housing, Open Space, Noise, Safety & Historic Preservation