CC RES 2014-005 RESOLUTION NO. 2014-05
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES ADOPTING THE FINAL HOUSING
ELEMENT OF THE GENERAL PLAN.
WHEREAS, the City of Rancho Palos Verdes initiated a General Plan Amendment
in 2013 in order to update the Housing Element of the City's General Plan, as required by
State law; and,
WHEREAS, on November 20, 2012, the City Council adopted C.C. Resolution No.
2012-88, authorized the hiring of Castaneda and Associates, a housing consultant, to
assist with the preparation of the City's updated Housing Element; and,
WHEREAS, a Preliminary Draft Housing Element was prepared by Staff and the
City's housing consultant; and,
WHEREAS, on August 27, 2013, the Planning Commission held a duly noticed
public hearing/workshop to hear public testimony, review and comment on the Preliminary
Draft Housing Element. The Planning Commission provided Staff with direction to make
minor modifications and forward the document to the City Council for review and comment;
and,
WHEREAS, on September 17, 2013, the City Council held a duly noticed public
hearing/workshop to hear public testimony, review and comment on the Preliminary Draft
Housing Element. The City Council directed Staff to make minor modifications and forward
the revised Preliminary Draft Housing Element to the California Department of Housing and
Community Development (HCD) for review; and,
WHEREAS, on October 10, 2013, the Preliminary Draft Housing Element was
transmitted to HCD for review and comment; and,
WHEREAS, the HCD provided comments on the Preliminary Draft Housing Element
in a telephone call with Staff on November 27, 2013; and,
WHEREAS, the revisions addressing the HCD's comments were prepared by Staff
and forwarded back to HCD for review; and,
WHEREAS, on December 9, 2013, HCD sent a letter to the City informing that the
revisions adequately addressed the statutory requirements of State housing element law.
As a result, the Housing Element will comply with Article 10.6 of the Government Code
once adopted by the City Council and submitted back to HCD; and,
WHEREAS, pursuant to the provisions of the California Environmental Quality Act,
Public Resources Code Sections 21000 et. seq. ("CEQA"), the State CEQA Guidelines,
California Code of Regulations, Title 14, Sections 15000 et. seq., the City's Local CEQA
Guidelines, and Government Code Section 65952.5(e)(Hazardous Waste and Substances
Statement), the City of Rancho Palos Verdes prepared an Initial Study and determined
that, there is no substantial evidence that the approval of the General Plan Amendment for
the updated Housing Element would result in a significant adverse effect on the
environment. The City's General Plan Housing Element will not result in or create any
significant impacts to Aesthetics,Agriculture Resources,Air Quality, Biological Resources,
Cultural Resources, Geology/Soils, Greenhouse Gas Emissions, Hazards/Hazardous
Materials, Hydrology/Water Quality, Land Use/Planning, Mineral Resources, Noise,
Population/Housing, Public Services, Recreation,Transportation/Traffic, or Utilities/Service
Systems. Accordingly, a Negative Declaration was prepared and notice of that fact was
given in the manner required by law; and,
WHEREAS, the Initial Study was prepared and distributed for circulation and review
from December 19, 2013 through January 21, 2014; and,
WHEREAS, on January 28, 2014, the Planning Commission adopted P.C.
Resolution No. 2014-06, recommending that the City Council certify a Negative Declaration
and approve the Final General Plan Housing Element amendment; and,
WHEREAS, after issuing notice pursuant to the requirements of the City's
Development Code and the State CEQA Guidelines,the City Council of the City of Rancho
Palos Verdes held a public hearing on February 4, 2014, at which time all interested parties
were given an opportunity to be heard and present evidence.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS:
Section 1: The City Council finds that a General Plan Housing Element
amendment is necessary to comply with State law and is consistent with the General Plan.
Specifically, the Housing Element notes a new housing element objective of 31 infill
dwelling units to year 2021. The additional 31 infill units will not cause any significant
adverse impact as any new residential units would be required to comply with applicable
development standards for the appropriate zoning district. Additionally, the Housing
Element is internally consistent with the other goals and policies stated within the General
Plan.
Section 2: The City Council finds that the Final General Plan Housing Element,
as reviewed and approved by the Planning Commission on January 28, 2014, which
includes all revisions to the Draft Housing Element submitted to the California Department
of Housing and Community Development (HCD) on October 10, 2013, and also contains
additional revisions requested by HCD, adequately responds to the concerns raised by
HCD and is consistent with all other elements, goals and polices of the General Plan and
complies with State law.
Resolution No. 2014-05
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Section 3: The City Council of the City of Rancho Palos Verdes hereby approves
a General Plan Amendment for the Final Housing Element, which includes the additional
revisions requested by HCD and as attached as Exhibit A, in order to further encourage the
provision of housing in the City in a manner that adequately serves the needs of all present
and future community residents in compliance with State law, and to make available
additional housing opportunities in the City for all economic segments of the community.
PASSED, APPROVED AND ADOPTED this 4th day of February, 2014.
• Mayor
Attest:
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )ss
CITY OF RANCHO PALOS VERDES )
I, Carla Morreale, City Clerk of the City of Rancho Palos Verdes, hereby certify that the
above Resolution No. 2014-05 was duly and regularly passed and adopted by the said
City Council at a regular meeting thereof held on February 4, 2014.
ClItji- t. City Clerk
Resolution No. 2014-05
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Resolution No 2014-05
Exhibit A
Page 1 of 114
CITY OFL
RAf ICHO PALOS VERDES
rvoosESHOOSES
GENERAL PLAN HOUSING ELEMENT
FOR PLANNING PERIOD 2013-2021
City Council Approva on e.ruary 1 eso.
Planning Commission Approval on January 28, 2014 (PC Reso. 2014-06)
Preliminary Draft Sent to HCD on October 10, 2013
City Council Approval of Preliminary Draft on September 17, 2013
Planning Commission Approval of Preliminary Draft on August 27, 2013
Resolution No 2014-05
Exhibit A
Page 2 of 114
CITY OFLip RAI`ICHO PALOS VERDES
H0OSESHOOSES
2013-2021 HOUSING ELEMENT
IN TROD UC TION
Resolution No 2014-05
Exhibit A
Page 3 of 114
City of Rancho Palos Verdes
2013-2021 Housing Element of the General Plan
Section 1 -Introduction
Table of Contents
A. Regional Setting 1-1
B. Historical Context 1-1
C. State Requirements and Legislative Changes 1-4
D. Role and Organization of the Housing Element 1-6
E. Housing Element Consistency With Other General Plan Elements 1-7
F. Other Statutory Requirements 1-7
1. Water and Sewer Priority 1-7
2. Flood Hazards and Flood Management Information 1-8
List of Charts
1-1 City of Rancho Palos Verdes Population Growth 1980 to 2013 1-4
SECTION 1 -INTRODUCTION
A. REGIONAL SETTING
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Exhibit A
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The City of Rancho Palos Verdes is located in Los Angeles County, generally in the southwest
area of the greater Los Angeles Metropolitan Area on the southern edge of the Palos Verdes
Peninsula. The three other cities that comprise the peninsula are Rolling Hills, Rolling Hills
Estates and Palos Verdes Estates. The City is approximately 13.5 square miles.
The nearest freeways include Interstate 405 (San Diego Freeway), Interstate 110 (Harbor
Freeway), and Interstate 710 (Long Beach Freeway). Hawthorne Boulevard and Palos Verdes
Drive provide access to the City.
B. HISTORICAL CONTEXT
On September 7, 2013, the City of Rancho Palos Verdes, the youngest city on the Palos Verdes
Peninsula, will celebrate its 40th anniversary. Each year is a milestone for all of the people who
worked so hard and so long for incorporation and for all of those who have enjoyed the benefits
ever since.
The story of the City's fight for incorporation is indeed an interesting tale. The birth of Rancho
Palos Verdes was the culmination of a series of events that occurred during the first half of the
20th Century, as well as the actual drive for incorporation, which began in earnest in the early
1960's and finally came to fruition in 1973.
At the close of the 19th Century, the Palos Verdes Peninsula was uninhabited, with the
exception of a few sheepherders and their flocks. The high mesas and sweeping terraces of this
land were lonely and barren. There were no trees, fences, roads or structures of any kind. Then,
for a brief period of time in the early 1900's, the Peninsula enjoyed prosperity as a cattle ranch
and rich farming area. During this time, 2,000 head of cattle roamed the open areas. Japanese
families farmed the most southern slopes with fields of beans, peas and tomatoes, while the
manager of the cattle ranch farmed the dryer northern slopes.
In 1913, Frank A. Vanderlip, president of the
National Bank of New York, bought the
16,000 -acre Palos Verdes Peninsula sight
unseen from rancher Jotham Bixby. Even
though Mr. Vanderlip had never seen the
Peninsula, he recognized its strategic
location and potential for development. Mr.
Vanderlip had a grand vision to develop the
"Palos Verdes Project" into the "most
fashionable and exclusive residential
colony" in the nation.
Abalone Cove looking east
toward Portuguese Point
Unfortunately, the area's remote location and lack of adequate roads initially thwarted his plans.
Later, the Stock Market Crash, the Great Depression and the onset of World War II crippled the
dream. However, none of these events changed the beauty and desirability of the Palos Verdes
Peninsula, with its magnificent views, beautiful rolling terrain, mild climate and clean air, as an
ideal place to live.
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Exhibit A
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SECTION 1 -INTRODUCTION
Probably the greatest single event that would shape the future of Rancho Palos Verdes
occurred in July 1953. By this time, Frank A. Vanderlip's eldest son, Frank Jr., was the president
of the Palos Verdes Corporation, which controlled the family's remaining undeveloped acreage
on the Peninsula. Since 1944, the Great Lakes Carbon Corporation had leased a 300 -acre tract
of land on the north side of the Peninsula for mining of diatomaceous earth. Although this mine's
resources had nearly been exhausted, another rich deposit was known to exist on a 165 -acre
tract near the crest of the Peninsula. For two years, the Great Lakes Carbon Corporation had
been unsuccessfully attempting to purchase this property from the Vanderlip family. Finally,
Frank Vanderlip Jr. agreed to sell, provided that Great Lakes purchase all of the stock in the
Palos Verdes Corporation. Upon completion of the transaction, Great Lakes Carbon Corporation
suddenly owned 7,000 acres of prime undeveloped land, all that was left of the 16,000 acres
bought from Mr. Bixby, with the exception of 500 acres retained by the Vanderlip family in the
Portuguese Bend area.
What happened next was not surprising. The plans for mining operations were quickly discarded
and a group of well -know architects and engineers were hired to create a master plan to
develop the property.
The grand plan envisioned for the Palos Verdes Peninsula by Frank A. Vanderlip Sr. was to be
only partially realized by the time of his death in 1937. In the nearly 25 years since he acquired
the property, Mr. Vanderlip's plan had been fragmented and diluted by a variety of external
forces.
In response to the changing circumstances, the other three Peninsula cities of Palos Verdes
Estates, Rolling Hills and Rolling Hills Estates incorporated before the largest building boom
began in the late 1950 and early 1960s. Fueled by the master plan created by the Great Lakes
Carbon Corporation and the burgeoning economic growth occurring in the South Bay area, the
remaining unincorporated area on the Peninsula began to develop rapidly and in ever-
increasing densities.
The idea of a fourth city was first advanced in 1962 as an answer to controlling the unbridled
development that was occurring in the unincorporated areas on the Peninsula, which remained
under the control of Los Angeles County. Unfortunately, these early efforts were never able to
get off the ground. In spite of protests from individually affected homeowner groups, adjacent
cities and the local school district, the Los Angeles County Board of Supervisors routinely
granted zone changes. In desperation, more than 40 homeowners groups joined together in
1965 to form the Peninsula Advisory Council (PAC) in the hopes that this collaboration would
add weight to their arguments against the proposed zone changes. However, despite PAC's
best efforts, the County continued to grant more zone changes for higher densities, with little
concern for the sensitive environment. According to PAC's records, 43 times they protested to
the County, and 43 times they failed.
Then, in 1969, came the new County Master Plan for the Peninsula that provided for a
population density far beyond what the local residents wanted. In response, a Peninsula -wide
organization was formed that same year called Save Our Coastline (SOC). Unlike previous
efforts, SOC was able to combine political and financial power with experienced local
governments focused on achieving a common goal. However, after several unsuccessful fights
against the County's Master Plan for the Peninsula, it became evident that the only way to
preserve the environment and to gain control over local zoning issues was through incorporation
of a fourth city.
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Exhibit A
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SECTION 1 -INTRODUCTION
The drive for incorporation of the fourth city intensified in February 1970 when a formal
application was made to the Local Agency Formation Commission (LAFCO), which was the first
step in a six -step process necessary for successful incorporation. LAFCO approved the
application shortly thereafter. The second step was successfully completed when signatures
supporting incorporation were obtained from the owners of 43% of the assessed valuation of the
land, 63% of the homeowners and 70% of the registered voters. However, further progress was
blocked when landowners representing more than 51 % of the assessed land value protested
the incorporation. In response, SOC filed a lawsuit in Federal District Court seeking to have
Section 34311 of the State Code declared unconstitutional. The so-called "one man -one vote"
suit contended that a vote should not be weighted by the land's assessed value, but rather by
the actual number of voters in the area. There was further litigation and many setbacks before
the State Supreme Court, in September 1972, ruled 7 to 0 in Curtis vs. Board of Supervisors
that landowners could not prevent voters from determining their own form of municipal
government. This cleared the way for completing the final steps with LAFCO towards
incorporation and permitting a cityhood election to take place.
The election was finally held on August 28, 1973. An overwhelming majority of 5 to 1 voted in
favor of incorporation. At the same time, the voters elected five City Council members out of a
field on 24 candidates. The first City Council, consisting of Mayor Marilyn Ryan and Council
members Gunther Buerk, Ken Dyda, Dave "Cisco" Ruth and Robert Ryan, all ran on similar
platforms of low-density land uses, minimum taxes, and responsiveness to residents. The
newly elected City Council held its first meeting on September 7, 1973 at Ridgecrest
Intermediate School.
The first City Hall offices were located in the former SOC offices in the Golden Cove Center at
the corner of Hawthorne Boulevard and Palos Verdes Drive West. One of the first actions taken
by the new City Council was to declare a building moratorium and to begin work on the
preparing the City's General Plan. In 1975, City Hall was relocated to its current location at the
former Army Nike missile base on Hawthorne Boulevard, just above the Golden Cove Center.
Chart 1-1 shows the community's population growth from 1980 to 2013. During that 33 -year
period, the City's population has increased by almost 6,000 people.
1-3
43000
42000
41000
40000
.,
39000
e
c 33000
a
37000
36000
35000
34000
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SECTION 1 -INTRODUCTION
Chart 1-1
Population Growth 1980 to 2013
41,667 41,643
41,145
36,577
-1
42,114
1980 1990 2000 2010 2013
C. STATE REQUIREMENTS AND LEGISLATIVE CHANGES
The Housing Element is one of the seven mandatory elements of the General Plan, and it
specifies ways in which the housing needs of existing and future residents can be met The
element became a mandated element of a general plan in 1969, or 44 years ago The law
acknowledges that, in order for the private market to adequately address housing needs and
demand, local governments must adopt land use plans and regulatory systems which provide
opportunities for, and do not unduly constrain, housing development
Government Code Section 65583 states
The housing element shall consist of an identification and analysis of existing and
projected housing needs and a statement of goals, policies, quantified objectives,
financial resources, and scheduled programs for the preservation, improvement, and
development of housing The housing element shall identify adequate sites for housing,
including rental housing, factory -built housing, mobile homes, and emergency shelters,
and shall make adequate provision for the existing and projected needs of all economic
segments of the community
In enacting the housing element requirement in 1969, the State legislature found and declared
that -
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Exhibit A
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SECTION 1 -INTRODUCTION
The availability of housing is of vital statewide importance, and the early attainment of
decent housing and a suitable living environment for every Californian, including farm
workers, is a priority of the highest order.
And that —
The provision of housing affordable to low- and moderate -income households requires
the cooperation of all levels of government.
Also —
Local and state governments have a responsibility to use the powers vested in them to
facilitate the improvement and development of housing to make adequate provision for
housing needs of all economic segments of the community.
The Housing Element must include six major components:
An assessment of the community's housing needs.
An inventory of sites that can accommodate the need for new housing.
An analysis of housing market and governmental constraints that impede public and
private sector efforts to meet the needs.
A progress report describing actions taken to implement the 2008-2014 Housing
Element.
A statement of goals, quantified objectives and policies relative to the construction,
rehabilitation, conservation and preservation of housing.
An implementation program which sets forth a schedule of actions which the City is
undertaking or intends to undertake to implement the policies and achieve the stated
goals and objectives.
The City's prior Housing Element was adopted on January 19, 2010. Since that date, SB 812 is
the only major change to the law. Chapter 507, Statutes of 2010 (SB 812), which took effect
January 2011, amended State housing element law to require the analysis of the special
housing needs of persons with developmental disabilities. This analysis should include an
estimate of the number of persons with developmental disabilities, an assessment of the
housing need, and a discussion of potential resources.
SB 375 requires that the housing element due date is 18 months after adoption of the Regional
Transportation Plan (RTP). October 15, 2013 (18 months after the RTP was adopted) is the due
date for adoption of the Housing Element. According to Government Code Section 65588(f)(1):
"Planning Period" shall be the time period between the due date for one housing element
and the due date for the next housing element.
The City's Housing Element planning period is from October 15, 2013 to October 15, 2021.
According to Government Code Section 65588(f)(2):
"Projection Period" shall be the time period for which the regional housing need is
calculated.
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Exhibit A
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SECTION 1 -INTRODUCTION
The SCAG Regional Housing Needs Assessment (RHNA) covers the period from January 1,
2014 to October 1, 2021.
According to SCAG, the anomaly of the housing element due date (October 15, 2013)
preceding the RHNA start date (January 1, 2014) is due to (a) legislative changes and statutory
definitions and (b) the date that SCAG adopted its Regional Transportation Plan. Also, HCD
uses January 1 or July 1 for RHNA determination start date purposes as these are the effective
dates used by Department of Finance (DOF) in updating housing estimates and population
projections.
D. ROLE AND ORGANIZATION OF THE HOUSING ELEMENT
As previously noted, the Housing Element is one of seven mandatory elements of a General
Plan. Its focus is on assessing the community's housing needs and describing programs to
address those needs. The element must describe actions to —
Identify adequate sites to accommodate a variety of housing needs
Assist in the development of affordable housing
Remove governmental constraints to housing improvement and construction
Improve the condition of housing
Preserve the affordable housing supply
Promote fair housing
Promote energy conservation
In addition to this Introduction, two additional Sections and two Appendices comprise the
Housing Element:
Section 2: Overview: This Section provides an overview of the public participation efforts
of the City during the development of the Housing Element, challenges the City faces in
addressing housing needs, and a brief summary of the document.
Section 3 - Housina Proaram: This Section provides a summary of the housing needs
and describes the goals, policies and objectives of the Housing Element. Section 3 also
describes the individual programs that will be implemented during the eight-year
planning period. Agencies involved in program implementation include the Community
Development Department, other City Departments, the County Housing Authority and
the County Community Development Commission.
Appendix A: This Appendix contains detailed information on the following:
Housing Needs Assessment
Sites Inventory and Analysis
Housing Market Constraints Analysis
Governmental Constraints Analysis
Progress Report
Appendix B: This Appendix includes a list of organizations consulted, data sources, and
definitions.
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Exhibit A
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SECTION 1 -INTRODUCTION
E. HOUSING ELEMENT CONSISTENCY WITH OTHER GENERAL PLAN ELEMENTS
Six elements comprise the Rancho Palos Verdes General Plan:
Natural Environment Element
Socio/Cultural Element
Urban Environment Element
Land Use Plan
Fiscal Element
Housing Element
During the planning period, consistency between the Housing Element and General Plan will be
maintained through the General Plan Annual Progress Report. This Report, which is usually
completed in spring of each year, reports on the status and implementation progress of the
General Plan Elements. The Progress Report contains information on the status of amendments
to the General Plan and the status of work efforts and programs implemented by the City each
year that go toward meeting the goals and objectives and fulfilling the policies set forth in each
General Plan Element.
In future Progress Reports, the City will include information on whether any of these
amendments will generate a need to amend the Housing Element with respect to goals,
policies, objectives, programs or the sites inventory. Revisions to the Housing Element can then
be made concurrently with amendments to the other General Plan Elements. In this way,
internal consistency between the General Plan Elements and the Housing Element will be
maintained throughout the planning period.
In addition, the City will add an internal consistency section to the Housing Element Progress
Report which is completed in April of each year and submitted to HCD. That section will
describe any revisions or changes to the Housing Element that were enacted the prior calendar
year in order to maintain consistency with all the other General Plan Elements.
Future amendments to the Safety, Conservation, and Land Use Elements will require a review
of the Housing Element for internal consistency, which may in turn, require amendments to the
Housing Element. For example, if sites identified in the Housing Element as suitable for housing
development are subsequently identified as inappropriate for development, other sites will need
to be identified. Annual review of the Land Use Element will assist the City in future updates of
the Housing Element and facilitate identification of appropriate sites to accommodate the City's
share of the regional housing need.
F. OTHER STATUTORY REQUIREMENTS
1. Water and Sewer Priority
Chapter 727 amended Government Code Section 65589.7(a) as follows:
The housing element adopted by the legislative body and any amendments made to that
element shall be immediately delivered to all public agencies or private entities that
provide water or sewer services for municipal and industrial uses, including residential,
within the territory of the legislative body. Each public agency or private entity providing
water or sewer services shall grant a priority for the provision of these services to
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SECTION 1 -INTRODUCTION
proposed developments that include housing units affordable to lower income
households. [Emphasis added]
The water supply is provided by the California Water Services Company, Rancho Dominguez
District, located at 2632 West 237th Street, Torrance, CA 90505. The Community Development
Department will deliver to the District a copy of the Housing Element following its adoption by
the City Council.
The Public Works Department (PWD) manages the City's sanitary sewer collection system. The
City's local sewers discharge into Los Angeles County Sanitation District facilities for
conveyance, treatment and disposal. The Community Development Department will deliver a
copy of the Housing Element to the PWD and the Sanitation District's Administrative Office
(1955 Workman Mill Road, Whittier, CA 90601).
2. Flood Hazards and Flood Management Information
Government Code Section 65302 requires all cities and counties to amend the safety and
conservation elements of their general plan to include an analysis and policies regarding flood
hazard and flood management information upon the next revision of the housing element on, or
after, January 1, 2009. The "Safety" section of the Urban Environment Element contains the
analysis and policies pertaining to flood hazards and flood safety programs.
Government Code Section 65302 also requires cities and counties, effective January 1, 2008, to
annually review the land use element for those areas subject to flooding identified by flood plain
mapping prepared by the Federal Emergency Management Agency (FEMA) or the State
Department of Water Resources. The City conducts its annual review as part of the General
Plan Annual Progress Report and also by the preparation of environmental impact reports.
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Exhibit A
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CITY OFLip RAI`ICHO PALOS VERDES
H0OSESHOOSES
2013-2021 HOUSING ELEMENT
OVERVIEW
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Exhibit A
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City of Rancho Palos Verdes
2013-2021 Housing Element of the General Plan
Section 2 -Overview
Table of Contents
A. Housing Element Public Participation Effort 2-1
1. Housing Needs Survey 2-1
2. Community Stakeholder Outreach 2-2
3. Public Review of the Draft Housing Element 2-3
4. Planning Commission and City Council Public Hearings 2-4
B. Challenges to Addressing the Community's Housing Needs 2-4
1. Reduced Funding for the Section 8 Housing Choice Voucher Program 2-4
2. Reduced Federal CDBG and HOME Funding 2-4
3. Loss of the Redevelopment Agency's Low and Moderate Income Housing Fund 2-4
C. Housing Element Summary 2-4
List of Tables
2-1 City of Rancho Palos Verdes 2013-2021 Housing Element Housing Program Outline
List of Specific Individual Programs by Program Category 2-5
List of Charts
2-1 City of Rancho Palos Verdes Household Income of Survey Respondents 2-2
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The Section 2 Overview presents information on:
Housing Element Public Participation Effort
Challenges To Addressing the Community's Housing Needs
Brief Housing Element Summary
A. HOUSING ELEMENT PUBLIC PARTICIPATION EFFORT
A housing element must:
Include a diligent effort by the local government to achieve public participation of all
economic segments of the community in the development of the housing element
During the development of the 2013-2021 Housing Element Update, public participation efforts
included:
Housing Needs Survey
Community Stakeholder Outreach
Public Review of the Draft Housing Element
Planning Commission and City Council Public Hearings
1. Housing Needs Survey
A Housing Needs Survey comprised of eight questions was posted on the City's website. The
public was notified of the survey by a publication in the Palos Verdes Peninsula News and to
subscribers of the City's email listserve system. The purpose of the Survey was to garner
insights on the respondents housing needs and their opinions on the community's housing
needs. Nine residents responded to the Survey. A summary of the Survey results is presented
below:
Household Characteristics:
60% Owners
40% Renters
0% large families (5 Persons or more)
50% have annual incomes of less than $48,000
Refer to Chart 2-1 for the income distribution of all survey respondents.
Of all respondents:
20% said they "need grab bars, ramps, or other accessibility modifications"
20% "have difficulty using stairs, bathtub, etc."
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Exhibit A
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Chart 2-1
City of Rancho Palos Verdes
Monthly Household Income of Survey Respondents
$8,000 to $8,999
0%
More than $9,0001111111111111111
17%
Less than $2,000
32%
$6,000 to $6,999
0%
$2,000 to $2,999
$5,000 to $5,999 0%
0%
When asked about their family's housing needs:
➢ 25% "need help with home repairs and maintenance"
➢ 75% say their "monthly housing costs are too high"
Y 50% "need a larger place to live in"
➢ 75% say their "monthly utility bills are too high"
When asked about high priority community housing programs:
➢ 25% said "assistance to modify my home"
➢ 50% indicated "first time home buyer assistance"
Y 33% indicated "assistance with monthly housing costs"
➢ 50% indicated "single-family home repair and rehabilitation"
While the survey is not a scientific sample, the respondents' answers reveal a need for
assistance for home repairs and rehabilitation, and first-time homebuyer assistance. Sixty
percent of the respondents indicated that senior housing was a priority while 25% stated new
family housing as a priority.
2. Community Stakeholder Outreach
An essential part of the public participation effort was outreach to community stakeholders.
Persons and organizations that represent the interest of low income families, the elderly, and
special needs households were contacted, including:
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Exhibit A
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REACH — Developmentally Disabled
Harbor Regional Center
Fair Housing Foundation
Mirandela Affordable Housing Development
Peninsula Seniors
3. Public Review of the Draft Housing Element
The Draft Housing Element was posted on the City's website on August 8, 2013 in advance of
the Planning Commission meeting scheduled for August 27, 2013. A notice was published in the
Palos Verdes Peninsula News to inform residents of the opportunity to review and to provide
comments on the Draft Housing Element. The Community Development Director notified
community stakeholders that comments on the Draft Housing Element are welcomed.
On August 27, 2013, the Preliminary Draft Housing Element was presented to the Planning
Commission for review and comments. The Planning Commission provided Staff with direction
to make relatively minor modifications to the Preliminary Draft and to forward the document to
the City Council for review. The revised Preliminary Draft with the Planning Commission
recommended changes was distributed to the Council on September 3, 2013.
On August 29, 2013, a public notice was published in the Palos Verdes Peninsula News to
inform residents of the opportunity to review and to provide comments on the Draft Housing
Element at the September 17th City Council meeting. Subsequently, on September 17th, the
City Council received a Staff Report on the Preliminary Draft, heard public testimony, discussed
the Preliminary Draft and posed questions to Staff. At the meeting, the Council expressed some
concerns regarding the Preliminary Draft and requested that Staff conduct additional research.
The Council then continued the item to October 1, 2013. At the October 1, 2013 public hearing,
the City Council approved the Preliminary Draft Housing Element and a site for re -zoning
pursuant to an Adequate Sites Program.
During both the City Council and Planning Commission review, one property owner expressed
support for residential zoning along Western Avenue. The City also received letters and
testimony from residents opposing the ideas of residential zoning along Western Avenue.
On December 19, 2013, a public notice was published in the Palos Verdes Peninsula News to
inform residents of the opportunity to review and to provide comments on the Initial
Study/Negative Declaration and the Final Draft Housing Element. The Initial Study/Negative
Declaration was also distributed to appropriate agencies for review. Both the Initial
Study/Negative Declaration and the Final Draft Housing Element was posted on the City's
website in advance of the Planning Commission meeting on January 28, 2014.
On January 28, 2014, the Final Draft Housing Element was presented to the Planning
Commission for review and comments. The Planning Commission provided Staff with direction
to make relatively minor modifications to the Final Draft Housing Element and to forward the
document to the City Council for review. The revised Final Draft Housing Element with the
Planning Commission recommended changes was posted on the City's website and distributed
to the City Council in advance of the public hearing on February 4, 2014.
2-3
Resolution No 2014-05
Exhibit A
Page 17 of 114
4. Planning Commission and City Council Public Hearings
The Public Hearings before the Planning Commission and City Council will offer another
opportunity for the public to comment on the Draft Housing Element. Community stakeholders
will be notified by the Community Development Director of the opportunity to comment on the
Housing Element at the scheduled public hearings.
B. CHALLENGES TO ADDRESSING THE COMMUNITY'S HOUSING NEEDS
At the beginning of the prior planning period — July 1, 2008 — Rancho Palos Verdes was in a
much better position to address the community's housing needs. Years before the prior planning
period began; the City had established a Redevelopment Agency and had accumulated
financial resources in the Low and Moderate Income Housing Fund. Now five years later as the
City enters the new planning period it faces the challenge of diminishing resources.
1. Reduced Federal CDBG and HOME Funding
Additionally, over the recent years, the amount of Community Development Block Grant
(CDBG) funds available to local communities has been dwindling. Rancho Palos Verdes is not a
CDBG entitlement jurisdiction but receives funds from the County of Los Angeles Community
Development Commission. Rancho Palos Verdes is one of 39 cities that participate in the
County's CDBG program. The City is not a participating jurisdiction under the HOME
Partnerships Program and, therefore, does not have a dedicated source of affordable housing
funds.
During the past few years, the amount of CDBG funds allocated by HUD to the County has
diminished. The County allocates funds to the participating through a formula that considers
population, poverty and overcrowding. The City's percentage share of all funds received by the
County is .008499%. In FY 2013-2014, the City will receive $142,918. Because of the decrease
in CDBG funding and new County requirements, the City discontinued the Home Improvement
Program.
2. Loss of the Redevelopment Agency's Low and Moderate Income Housing Fund
Pursuant to State law, the Rancho Palos Verdes Redevelopment Agency was dissolved in
February 2012. Prior to the dissolution, the RDA was receiving approximately $225,000 per year
in its Low and Moderate Income Housing Fund. As a result of the dissolution, these funds are
no longer available.
C. HOUSING ELEMENT SUMMARY
Since the City adopted the current Housing Element in December 2009, only one major change
has been made to the statute. That change requires an analysis of the needs of
developmentally disabled persons. As noted above, resources to address housing needs have
dwindled leaving the City in a much poorer position than it was five years. Table 2-1 on the next
page shows the programs that the City will implement in order to meet the six program
mandates of the housing element law.
2-4
Resolution No 2014-05
Exhibit A
Page 18 of 114
Table 2-1
City of Rancho Palos Verdes
2013-2021 Housing Element
Housing Program Outline
List of Specific Individual Programs by Program Category
Category 1 — Identify Housing Sites to
Accommodate the City's Share of the Regional
Housing Need
Category 2 — Assist in the Development of
Lower Income and Moderate Income Housing
Category 3 — Remove Governmental
Constraints to the Maintenance, Improvement
and Development of Housing
Category 4 — Conserve and Improve the
Existing Stock of Affordable Housing
Category 5 — Promote Housing Opportunities
for All Persons
Category 6 — Promote Energy Conservation
1.
2.
3.
4.
5.
6.
7.
8.
9.
Adequate Sites Program
Moderate Income Second Unit Development
Program
No Net Loss Program
Section 8 Rental Assistance for Cost Burdened
Lower Income Households
Citywide Affordable Housing Requirement/
Housing Impact Fee
First Time Homebuyer Assistance
Outreach Program for Persons with Disabilities
Extremely Low Income Housing Program
Zoning Ordinance Amendments to Remove
Governmental Constraints
10. Housing Code Enforcement Program
11. Housing Improvement Program
12. Fair Housing Services Program
13. Fair Housing Information Program
14. Energy Conservation Program
2-5
Resolution No 2014-05
Exhibit A
Page 19 of 114
CITY OFLip RAI`ICHO PALOS VERDES
H0OSESHOOSES
2013-2021 HOUSING ELEMENT
HOUSING PROGRAM
Resolution No 2014-05
Exhibit A
Page 20 of 114
City of Rancho Palos Verdes
2014-2021 Housing Element of the General Plan
Section 3 Table of Contents
A. Introduction 3-1
Program Category #1: Describe Actions to Make Sites Available to Accommodate the City's
Share of the Regional Housing Need and Encourage the Development of a Variety of Housing
Types 3-4
1. Housing Needs, Goals, Policies and Objectives 3-4
2. Housing Programs 3-5
Program #1 — Adequate Sites Program 3-5
Program #2 — Moderate Income Second Unit Development 3-6
Program #3 — No Net Loss Program 3-6
Program Category #2: Assist in the Development of Adequate Housing to Meet the Needs
of Extremely Low-, Very Low-, Low- and Moderate -Income Households 3-7
1. Housing Needs, Goals, Policies and Objectives 3-7
2. Housing Programs 3-8
Program #4 — Section 8 Rental Assistance for Cost Burdened Lower Income Renters 3-8
Program #5 — Citywide Affordable Housing Requirement/Housing Impact Fee 3-8
Program #6 — First Time Homebuyer Assistance 3-9
Program #7 — Outreach Program for Persons with Developmental Disabilities 3-9
Program #8 — Extremely Low Income (ELI) Program 3-9
Program Category #3: Address and, Where Appropriate and Legally Possible, Remove
Governmental Constraints to the Maintenance, Improvement and Development of Housing__3-11
1. Housing Needs, Goals, Policies and Objectives 3-11
2. Housing Programs 3-11
Program #9 — Zoning Ordinance Amendments to Remove Governmental
Constraints -Employee Housing Act 3-11
Program Category #4: Conserve and Improve the Condition of the Existing Stock of
Affordable Housing 3-12
1. Housing Needs, Goals, Policies and Objectives 3-12
2. Housing Programs 3-12
Program #10 — Housing Code Enforcement Program 3-13
Program #11 — Housing Improvement Program 3-13
Resolution No 2014-05
Exhibit A
Page 21 of 114
Program Category #5: Promote Housing Opportunities for All Persons 3-14
1. Housing Needs, Goals, Policies and Objectives 3-14
2. Housing Programs 3-14
Program #12 — Fair Housing Services Program 3-14
Program #13 — Fair Housing Information Program 3-14
Program Category #6: Promote Energy Conservation 3-16
Program #14 — Energy Conservation Program 3-16
List of Tables
3-1 City of Rancho Palos Verdes — 2013-2021 Housing Program Summary 3-2
Resolution No 2014-05
Exhibit A
Page 22 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
A. INTRODUCTION
Government Code Section 65583(c) requires that a housing element include:
A program which sets forth a five-year schedule of actions the local government is
undertaking or intends to undertake to implement the policies and achieve the goals and
objectives of the housing element....
The housing program must:
Identify Actions to Make Sites Available to Accommodate the City's Share of the
Regional Housing Need [Government Code Section 65583(c)(1)]
Assist in the Development of Adequate Housing to Meet the Needs of Extremely
Low-, Very Low-, Low- and Moderate Income Households [Government Code
Section 65583(c)(2)]
Address and, Where Appropriate and Legally Possible, Remove Governmental
Constraints to the Maintenance, Improvement and Development of Housing
[Government Code Section 65583(c)(3)]
Conserve and Improve the Condition of the Existing Stock of Affordable Housing
[Government Code Section 65583(c)(4)]
Promote Housing Opportunities for All Persons Regardless of Race, Religion, Sex,
Marital Status, Ancestry, National Origin, Familial Status, or Disability [Government
Code Section 65583(c)(5)]
Promote Energy Conservation [Government Code Section 65583(a)(8)]
The City does not have affordable housing at risk of conversion to market rate housing (refer to
pages A-10 and A-11). Therefore, Government Code Section 65583(c)(6) which concerns the
preservation of at -risk housing does not apply to Rancho Palos Verdes.
For each of the six program categories listed above, Section 3 presents:
A summary of the program category's housing needs. Each housing need (e.g., cost
burden, housing rehabilitation) is discussed in greater detail in Appendix A.
A statement of the program category's housing goals, policies and objectives.
A description of the program category's individual programs that will be implemented
during the 2013-2021 planning period.
Table 3-1 presents a summary description of the individual programs of each program category
as follows:
Individual Program Title
Responsible Implementing Agency
Objective
Time Schedule
Funding Source(s)
Under the Funding Source(s) column, CDD refers to Community Development Department.
The 14 individual programs are described in greater detail on pages 3-3 through 3-14.
3-1
Resolution No 2014-05
Exhibit A
Page 23 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
Table 3-1
City of Rancho Palos Verdes — 2013-2021 Housing Program Summary
•
• 1. •• 1 N.
ti•• • -
Implementing
Agency
Ade.
•• -
usin • Sites
- •
• • %.•
1
Western Avenue Vision
Plan/Adequate Sites
Program
2 Moderate Income
Second Unit
Development Program
3 No Net Loss Program
Community
Development
Department
Community
Development
Department
Community
Development
Department
Minimum of 8
housing units for
lower income
households
10 second units
constructed
Establish the
evaluation
procedure to
monitor housing
capacity
Implemented no
later than March
2017
Applications will be
processed during
the October 2013 —
October 2021
Itanning period
mplemened by
July 2014
General Fund for CDD
Planning staff
General Fund for CDD
Planning staff
General Fund for CDD
Planning staff
Affo
4 Section 8 Rental
Assistance for Cost
Burdened Lower
Income Households
5 Citywide Affordable
Housing Requirement/
Housing Impact Fee
6 First Time Home Buyer
Assistance
7 Outreach Program for
Persons with
Disabilities
8 Extremely Low Income
Housing Program
Housing Authority
of the County of
Los Angeles
Community
Development
Department
Community
Development
Department
County of Los
Angeles
Community
Development
Commission
So California
Home Financing
Authority
Community
Development
Department
REACH
Community
Development
4 units for
extremely low
and low income
renter
households
Minimum of 7
housing units for
lower income
house-
holds
3 moderate
income
households
Coordinate with
Harbor Regional
Center
Assist 4
extremely low
3-2
HAP contracts
between the
Housing Authority
and HUD will be
executed annually
during the
October 2013 —
October 2021
planning period
New projects will
be subject to
Program #5 during
the October 2013 —
October 2021
planning period
Implemented
throughout the
October 2013 —
October 2021
planning period
Implement outreach
components no later
than July 2015
Implemented
annually during the
County Section 8
contract with HUD
General Fund for CDD
Planning staff
Housing Impact Fee
County Home Funds,
Tax Credits, and Bond
Proceeds
General Fund for
CDD Planning staff
HUD Section 8
funds, Citywide
Resolution No 2014-05
Exhibit A
Page 24 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
Table 3 -1 -continued
City of Rancho Palos Verdes — 2013-2021 Housing Program Summary
ndividual Prograniglir Response e
Implementing
Agency
ime Schedule Funding
Sources
R
9 Zoning Ordinance
Amendments to
Remove Governmental
Constraints
Department and
Housing Authority
of the County of
Los Angeles
Community
Development
Department
Income
households
Adopted
amendment
2013-2021 planning
period
Adopted by
July 2014
Affordable Housing
Requirement and
Housing Impact Fee
General Fund for
CDD Planning staff
Im • rove Housin t Conditions
10 Housing Code
Enforcement Program
11 Home Improvement
Program
Community
Development
Department
Public Works
Department
10 new cases
per month
5 housing units
Implemented
annually during the
2013 — 2021
planning period
Implemented
throughout the
2013 — 2021
planning period,
subject to funding
availability
General Fund for
CDD code
enforcement staff
CDBG, CalHome, or
Other Non -City
Funds
ote Fair Housi
12 Fair Housing Services
Program
Fair Housing
Foundation
13 Fair Housing Information Community
Program Development
Department
65 lower-
income
households
Information
disseminated
14 Energy Conservation
Program
Promot
Community
Development
Department
Implemented
throughout the
2013 — 2021
itanning period
nformation will be
posted on the City's
website by July
2014 Brochures
and other fair
housing literature
will be disseminated
by
January 2015
Website and fair
housing information
will be updated
annually
Implement
Voluntary Green
Building
Construction
Program
3-3
County CDBG Funds
General Fund for
CDD Planning staff
Implemented
throughout the
2013 — 2021
planning period,
energy conservation
ordinances will be
updated as required
by State law
General Fund for
CDD Building staff
Resolution No 2014-05
Exhibit A
Page 25 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
PROGRAM CATEGORY #1:
DESCRIBE ACTIONS TO MAKE SITES AVAILABLE TO ACCOMMODATE THE CITY'S
SHARE OF THE REGIONAL HOUSING NEED AND ENCOURAGE THE DEVELOPMENT
OF A VARIETY OF HOUSING TYPES
Government Code Section 65583(c)(1) states that the housing program must:
Identify actions that will be taken to make sites available during the planning period of
the general plan with appropriate zoning and development standards and with services
and facilities to accommodate that portion of the city's ... share of the regional housing
need for each income level that could not be accommodated on sites identified 1n the
inventory ... without rezoning...
Sites shall be identified as needed to facilitate and encourage the development of a
variety of types of housing for all income levels, including multifamily rental housing,
factory -built housing, mobilehomes, housing for agricultural employees, supportive
housing single -room occupancy units, emergency shelters, and transitional housing.
1. Housing Needs, Goals, Policies and Objectives
SCAG's Regional Housing Needs Assessment has allocated a new housing construction need
to Rancho Palos Verdes of 31 housing units, as follows:
SCAG'S Regional Housing Needs: January 2014 — October 2021
Extremely
7
Abov
Low
V-
Low
Moderat
--_
4
4
5
5
13
31
The Sites Inventory and Analysis (pages A-21 to A-24) demonstrates that there are sufficient
sites to meet most of the housing needs listed above. To provide sufficient sites for moderate
income households, however, the City will promote the development of second units.
Additionally, the City will implement a Western Avenue Vision Plan/Adequate Sites Program to
address the current shortfall of eight lower income housing sites.
Goals
• Accommodate the housing needs of all income groups as quantified by the Regional
Housing Needs Assessment (January 2014 - October 2021).
➢ Facilitate the construction of the maximum feasible number of housing units for all
income groups.
Policies
• Designate sites that provide for a variety of housing types.
➢ Implement the Land Use Element and Development Code to achieve adequate sites
for all income groups.
3-4
Resolution No 2014-05
Exhibit A
Page 26 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
• Prefer that persons, entities, and/or developers that are obligated to provide
affordable housing units provide the affordable housing units on-site as part of their
development project rather than paying in -lieu fees.
New Construction Objectives
2. Housing Programs
Program #1 — Adequate Sites Program
The City received Compass Blueprint funding from SCAG to complete a Western Avenue Vision
Plan. Phase 1 has been completed and on September 12, 2013, the City obtained a Grant from
SCAG to complete Phase 2.
The Western Avenue study corridor, for most of its two-mile length, constitutes the municipal
boundary between the cities of Rancho Palos Verdes (on the west) and Los Angeles (on the
east). The Vision Plan focuses on the two-mile stretch from Palos Verdes Drive on the north to
Peck Park on the South. The study corridor provides a diversity of uses with commercial uses
being concentrated on the south end, a mix of commercial and residential uses between
Toscanini and John Montgomery Drives, and institutional uses located at the north end.
The City will implement an Adequate Sites Program to address the shortfall of sites to
accommodate eight lower income housing units during Phase 2 of the Western Vision Plan
process. The City has identified the following site as one that is appropriate to re -zone to a
minimum of 20 dwelling units per acre:
> Geographic Identifiers: 29619 Western Avenue; Assessor Parcel Number 7557-039-011
Y Size: 44 acres
> Current General Plan Designation: Commercial -Retail
Y Current Zoning Designation: Commercial -General
> Existing Uses: Older commercial structure built in 1961, with a total of four tenants,
measuring 14,092ft' in size. The site is considered legal non -conforming due to the lack
of on-site parking. The property owner of this site indicated his interest and support in
re -zoning the property to potentially attract developers to re -develop this aging, non-
conforming site.
> Housing Capacity: 8 units at a density of 20 dwelling units per acre
Zoning of this site will be accomplished during the Western Avenue Vision Plan process, but no
later than March 2017, and will allow multifamily uses by right, without a CUP, planned unit
development permit or other discretionary action pursuant to Government Code Section
65583.2(h) and (i). One part of the Government Code requires that sites be sized to allow a
minimum of 16 dwelling per site.
3-5
1
2
2
10
116
131
2. Housing Programs
Program #1 — Adequate Sites Program
The City received Compass Blueprint funding from SCAG to complete a Western Avenue Vision
Plan. Phase 1 has been completed and on September 12, 2013, the City obtained a Grant from
SCAG to complete Phase 2.
The Western Avenue study corridor, for most of its two-mile length, constitutes the municipal
boundary between the cities of Rancho Palos Verdes (on the west) and Los Angeles (on the
east). The Vision Plan focuses on the two-mile stretch from Palos Verdes Drive on the north to
Peck Park on the South. The study corridor provides a diversity of uses with commercial uses
being concentrated on the south end, a mix of commercial and residential uses between
Toscanini and John Montgomery Drives, and institutional uses located at the north end.
The City will implement an Adequate Sites Program to address the shortfall of sites to
accommodate eight lower income housing units during Phase 2 of the Western Vision Plan
process. The City has identified the following site as one that is appropriate to re -zone to a
minimum of 20 dwelling units per acre:
> Geographic Identifiers: 29619 Western Avenue; Assessor Parcel Number 7557-039-011
Y Size: 44 acres
> Current General Plan Designation: Commercial -Retail
Y Current Zoning Designation: Commercial -General
> Existing Uses: Older commercial structure built in 1961, with a total of four tenants,
measuring 14,092ft' in size. The site is considered legal non -conforming due to the lack
of on-site parking. The property owner of this site indicated his interest and support in
re -zoning the property to potentially attract developers to re -develop this aging, non-
conforming site.
> Housing Capacity: 8 units at a density of 20 dwelling units per acre
Zoning of this site will be accomplished during the Western Avenue Vision Plan process, but no
later than March 2017, and will allow multifamily uses by right, without a CUP, planned unit
development permit or other discretionary action pursuant to Government Code Section
65583.2(h) and (i). One part of the Government Code requires that sites be sized to allow a
minimum of 16 dwelling per site.
3-5
Resolution No 2014-05
Exhibit A
Page 27 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
Program #2 — Moderate Income Second Unit Development
SCAG allocated a moderate income housing need of five housing units. . During the five-year
between 2008 and 2013, four second units have been built and two are approved but have not
been constructed. The annual average is 1.2 second units. Based on this annual average, it is
projected that nine to 10 second units will be constructed during the eight-year planning period
The monthly rents of the second units would be affordable to moderate income households
(refer to pages A-22 to A-24).
In order to encourage and facilitate the development of moderate income second units, the
following actions will be implemented during the 2013-2021 planning period:
Publish an article on second unit developments and standards in the Palos Verdes
Peninsula News. The article will be published in the first quarter of 2014 and will be
re -published at least annually.
Keep homeowners informed of second unit development through periodic
announcements on the City's Website and local newspaper.
Consider adopting a policy to defer, reduce and/or waive second unit planning and
development impact fees.
Work with the local architectural community to post on the City's website drawings
that may help homeowners to visualize how second units can be developed on their
lots. The drawings will be posted on the City's website by mid -year 2014.
Prepare and make available at the Community Development Department counter a
brochure on second unit development. The brochure will be prepared and available
by the mid -year 2014.
Complete a survey of other methods used by cities to promote second unit
development. Based on the findings of this review, the City would revise and/or
establish new standards, procedures, and incentives. The City will complete the
review and evaluation by the fourth quarter 2014.
Program #3 — No Net Loss Program
This is a model program developed by HCD and that Department recommends inclusion of this
program in the Housing Element Update. The program implements Government Code Section
65863. The "no net loss" program is described as follows:
To ensure adequate sites are available throughout the planning period to meet the City's
RHNA, the City will annually update an inventory that details the amount, type and size of
vacant and underutilized parcels to assist developers in identifying land suitable for
residential development.
The City will also report on the number of extremely low, very low, low and moderate
income units constructed annually. If the inventory indicates a shortage of available sites;
the City will rezone sufficient sites to accommodate the City's RHNA.
To ensure sufficient residential capacity is maintained to accommodate the City's RHNA,
the City will develop and implement a formal ongoing (project -by -project) evaluation
procedure pursuant to Government Code Section 65863. Should an approval of
development result in a reduction of capacity below the residential capacity needed to
accommodate the remaining need for lower income households, the City will identify and
zone sufficient sites to accommodate the shortfall.
3-6
Resolution No 2014-05
Exhibit A
Page 28 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
This program will be implemented on an ongoing basis throughout the planning period.
The development of the evaluation procedure to implement Government Code Section 65863
will be accomplished by June -July 2014.
PROGRAM CATEGORY #2:
ASSIST IN THE DEVELOPMENT OF ADEQUATE HOUSING TO MEET THE NEEDS OF
EXTREMELY LOW--, VERY LOW-, LOW-, AND MODERATE- INCOME HOUSEHOLDS
Government Code Section 65583(c)(2) states that a housing program shall:
Assist in the development of adequate housing to meet the needs of extremely low-,
very low-, low- and moderate- income households.
The term "development" includes providing for affordability covenants in existing housing and
construction of new affordable housing units.
1. Housing Needs, Goals, Policies and Objectives
Cost burden or overpaying, which is defined as spending 30% or more of gross household
income for housing including utilities, is the most severe need experienced by lower income
households. Cost burden is adversely impacting the quality of life of 700 lower income renters
and 1,200 lower income owners. There also is need for 13 new lower-income and 5 new
moderate- income housing units.
Goals
> Reduce the number of cost burdened lower income households.
• Reduce the number of crowded lower income households.
• Increase the number of moderate income, first-time homebuyers.
Policies
• Provide rental assistance to extremely low-, very low, and low- income households
through programs administered by the Housing Authority of the County of Los Angeles.
• Monitor and protect the supply of affordable housing by enforcing existing regulations
and affordability restrictions.
> Continue to implement the Citywide Affordable Housing Requirement/Housing Impact
Fee.
> Facilitate the construction of new housing affordable to lower income households.
Y Ensure the affordability of new affordable housing developments through long-term
affordability covenants.
• Provide information to local residents about financial assistance available to first time
homebuyers.
3-7
Resolution No 2014-05
Exhibit A
Page 29 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
Housing Assistance Objectives*
*Includes Section 8 assisted households (4), Citywide Affordable
Housing Requirement/Housing Impact Fee (7), housing improvement
program (5) and first time homebuyer assistance (3)
2. Housing Programs
Program #4 - Section 8 Rental Assistance for Cost Burdened Lower Income Renters
The Housing Authority of the County of Los Angeles administers the Section 8 Housing Choice
Voucher Program in the unincorporated area and 62 cities, including Rancho Palos Verdes.
This program contributes to achieving the goals of reducing overpaying and crowding. The
planning period objective is to provide rental assistance to 2 extremely low income households
and 2 very low income households.
In order to assist the Housing Authority staff in program implementation, the City will do all of
the following:
> Assist the Housing Authority in conducting a Landlord Outreach Program
Y Inform the Housing Authority staff of the City's initiatives to provide affordable
housing through the existing housing stock.
• Transmit apartment rental surveys to the Housing Authority staff
• Explore with the Housing Authority staff, opportunities for use of the Section 8
program in existing apartment housing.
The City actions will be accomplished by the 4th quarter 2014.
Program #5- Citywide Affordable Housing Requirement/Housing Impact Fee
All new residential developments of five or more dwelling units are required to provide up to 5%
of all units affordable to very low income households or to provide up to 10% of all units
affordable to low income households. The affordable units shall be provided on-site or off-site.
Upon City Council approval, in -lieu fees can be paid instead of providing the required affordable
housing units. The City Council established an in -lieu fee of $201,653 plus a 10% administrative
fee per affordable unit required.
In order to mitigate the impact of local employment generation on the local housing market, new
nonresidential development or conversion of existing development to a more intense use, must
make provision for housing affordable to low and very low households. This requirement
applies to applications for the construction, expansion or intensification of nonresidential land
uses, including but not limited to commercial projects, golf courses, private clubs, and
institutional developments.
Developers of non-residential projects must pay a residential impact fee as established by the
City Council. The fee must be adequate to provide one low or very low affordable housing unit
3-8
4
7
5
3
19
*Includes Section 8 assisted households (4), Citywide Affordable
Housing Requirement/Housing Impact Fee (7), housing improvement
program (5) and first time homebuyer assistance (3)
2. Housing Programs
Program #4 - Section 8 Rental Assistance for Cost Burdened Lower Income Renters
The Housing Authority of the County of Los Angeles administers the Section 8 Housing Choice
Voucher Program in the unincorporated area and 62 cities, including Rancho Palos Verdes.
This program contributes to achieving the goals of reducing overpaying and crowding. The
planning period objective is to provide rental assistance to 2 extremely low income households
and 2 very low income households.
In order to assist the Housing Authority staff in program implementation, the City will do all of
the following:
> Assist the Housing Authority in conducting a Landlord Outreach Program
Y Inform the Housing Authority staff of the City's initiatives to provide affordable
housing through the existing housing stock.
• Transmit apartment rental surveys to the Housing Authority staff
• Explore with the Housing Authority staff, opportunities for use of the Section 8
program in existing apartment housing.
The City actions will be accomplished by the 4th quarter 2014.
Program #5- Citywide Affordable Housing Requirement/Housing Impact Fee
All new residential developments of five or more dwelling units are required to provide up to 5%
of all units affordable to very low income households or to provide up to 10% of all units
affordable to low income households. The affordable units shall be provided on-site or off-site.
Upon City Council approval, in -lieu fees can be paid instead of providing the required affordable
housing units. The City Council established an in -lieu fee of $201,653 plus a 10% administrative
fee per affordable unit required.
In order to mitigate the impact of local employment generation on the local housing market, new
nonresidential development or conversion of existing development to a more intense use, must
make provision for housing affordable to low and very low households. This requirement
applies to applications for the construction, expansion or intensification of nonresidential land
uses, including but not limited to commercial projects, golf courses, private clubs, and
institutional developments.
Developers of non-residential projects must pay a residential impact fee as established by the
City Council. The fee must be adequate to provide one low or very low affordable housing unit
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Resolution No 2014-05
Exhibit A
Page 30 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
for each 10 employees to be generated by the nonresidential development. The City Council
established an in -lieu fee of $1 per square foot of habitable residential structure.
Through these two initiatives, at least seven affordable housing units will be provided:
3 at the Crestridge Senior Housing Project
2 at the Highridge Condominium Project
2 off-site from the Trump Homes Project
Additionally, the City currently has approximately $500,000 in its Affordable Housing In -Lieu
Fund. The City will create a program by June 30, 2017 that addresses the expenditure of
these funds towards affordable housing.
Program #6 — First Time Homebuyer Assistance
The City no longer has monies in an affordable housing fund due to the forced dissolution of the
Redevelopment Agency. There are non -City programs, however, which provide financial
assistance to first time homebuyers. The City will post on its website information on these
programs which include:
County Homeownership (HOP) Program
County Mortgage Credit Certificate (MCC) Program
Southern California Home Financing Authority Down Payment Assistance Program
The HOP Program offers down payment assistance to lower income households in the amount
of $50,000 or 20% of the purchase price, whichever is less. The MCC Program provides a credit
against Federal income taxes owed by first time homebuyers. The tax credit is equal to 15% of
each year's interest payment. The Southern California Home Financing Authority offers down
payment and closing cost assistance in the form of a gift equal to 4% of the first loan amount.
Program #7 — Outreach Program for Persons with Developmental Disabilities
In order to assist in the housing needs for persons with developmental disabilities, the City will
implement programs to coordinate housing activities and outreach with the Harbor Regional
Center and to encourage housing providers to designate a portion of new affordable housing
developments for persons with disabilities, especially persons with developmental disabilities,
and pursue funding sources designated for persons with special needs and disabilities.
More specifically, the City will work with the Harbor Regional Center to implement an outreach
program that informs families within Rancho Palos Verdes about housing and services available
for persons with developmental disabilities. The program could include the development of an
informational brochure, including information on services on the City's website, and providing
housing -related training for individuals and families through workshops. The Community
Development Department will work with REACH program for developmentally disabled persons.
Program #8 — Extremely Low Income (ELI) Program
The needs of extremely low income households are addressed within the framework of the
programs administered by the City and Housing Authority of the County of Los Angeles. Each of
these entities addresses the needs of low and moderate income households, including
extremely low income households. The quantified objectives for extremely low income
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Resolution No 2014-05
Exhibit A
Page 31 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
households are based on individual programs that address the existing and future needs of
extremely low income households, as follows:
Program #4 — Section 8 Rental Assistance - 2 extremely low income households
Program #5 — Citywide Affordable Housing Requirement/Housing Impact Fee — 1
extremely low income households
Program #11 — Home Improvement Program — 1 extremely low income households
In order to promote the Section 8 Rental Assistance Program, the City will accomplish the
following:
Transmit to the Housing Authority the Apartment Rental Survey that was completed
as part of the Housing Element Update. This information may assist the Housing
Authority to identify apartment complexes with monthly rents below the Fair Market
Limits. This action will be accomplished by mid -year 2014.
Host a Landlord Outreach Workshop to be conducted by the Housing Authority. This
action will be accomplished by the 1st quarter of 2015.
The outreach efforts and actions will be implemented periodically, as necessary
through the balance of the planning period.
With regard to Program #5, the City will take the following actions:
Continue to require the development of seven affordable housing units in three
projects that will be constructed during the planning period.
Create a program that will allocate existing and future in -lieu fees towards providing
affordable housing, which may include the provision of one or more units for
extremely low income households.
With regard to Program #11, the City will take the following actions:
Annually evaluate the feasibility of reviving CDBG funds as a source to finance the
Home Improvement Program. The drastic reduction in CDBG funding and related
program administrative costs have hampered the City's ability to continue to use
CDBG funds to finance this program. If the amount of CDBG funds allocated to the
City is increased, it may be feasible to revive the program.
Annually evaluate the potential to apply for housing resources other than CDBG
funds to finance Home Improvement Program. Potential resources include the State
CalHome Program.
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Resolution No 2014-05
Exhibit A
Page 32 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
PROGRAM CATEGORY #3:
ADDRESS AND, WHERE APPROPRIATE AND LEGALLY POSSIBLE, REMOVE
GOVERNMENTAL CONSTRAINTS TO THE MAINTENANCE, IMPROVEMENT AND
DEVELOPMENT OF HOUSING
More specifically, Government Code Section 65583(c)(3) states that a housing program must:
Address and, where appropriate and legally possible, remove governmental constraints
to the maintenance, improvement, and development of housing, including housing for all
income levels and housing for persons with disabilities.
The program shall remove constraints to, or provide reasonable accommodations for
housing designed for, intended for occupancy by, or with supportive services for,
persons with disabilities.
1. Housing Needs, Goals, Policies and Objectives
The governmental constraints analysis found a need to address farm employee housing.
Goals
Attain barrier and constraint free City codes, ordinances, and policies.
Provide codes, ordinances, and policies that lead to the improvement of the housing
status of residents.
Policies
Remove existing governmental constraints to the maintenance, preservation,
improvement and development of housing.
Affirmatively further housing goals through City codes, ordinances and policies that
enhance the housing quality of life experienced by residents.
Continue to implement land use regulations that facilitate meeting affordable housing
needs.
Continue the processing of new housing developments designed to address the
needs of all income groups.
Objectives
The housing program efforts do not involve the production or rehabilitation of housing.
Therefore, quantified objectives cannot be set for this Program Category.
2. Housing Programs
Program #9 - Zoning Ordinance Amendments to Remove Governmental Constraints —
Employee Housing Act
According to the 2010 Census, none of the employed population in Rancho Palos Verdes works
in the industries of farming, fishing or forestry, and there is no agriculturally zoned land in the
3-11
Resolution No 2014-05
Exhibit A
Page 33 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
City. Therefore, given the apparent absence of farmworkers in the community, the City has not
identified a need for specialized farmworker housing beyond overall programs for housing
affordability.
California Health and Safety Code Section 17021.5 (Employee Housing Act) requires
jurisdictions to permit employee housing for six or fewer employees as a single-family use.
Employee housing shall riot be included within the zoning definition of a boarding house,
rooming house, hotel, dormitory, or other similar term that implies that the employee housing is
a business run for profit or differs in any other way from a family dwelling. Jurisdictions cannot
impose a conditional use permit, zoning variance, or other zoning clearance of employee
housing that serves six or fewer employees that are not required of a family dwelling of the
same type in the same zone.
The City will amend the Zoning Ordinance to provide consistency with the Employee Housing
Act. Employee housing is privately owned housing that is provided by an employer in
connection with any work, whether or not rent is involved. [See Health and Safety Code §
17008(a)] The zoning provisions will be enacted by June -July 2014.
PROGRAM CATEGORY #4:
CONSERVE AND IMPROVE THE CONDITION OF THE EXISTING STOCK OF
AFFORDABLE HOUSING
Government Code Section 65583(c)(4) states that a housing program shall describe
actions to:
Conserve and improve the condition of the existing affordable housing stock, which may
include addressing ways to mitigate the loss of dwelling units demolished by public and
private actions.
1. Housing Needs, Goals, Policies and Objectives
Housing in need of rehabilitation is estimated to range from 300 to 500 housing units.
Goals
> Achieve a housing stock free of substandard structures.
• Conserve and improve the existing stock of affordable housing.
Policies
• Continue to implement the Housing Code Enforcement Program.
> Implement a Home Improvement Program when funds become available.
Objectives
• Housing code enforcement at an average level of 10 new cases per month for all
income levels during the 2013-2021 planning period.
• Rehabilitation of five owner -occupied housing units.
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Resolution No 2014-05
Exhibit A
Page 34 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
The rehabilitation objective assumes that funding from a non -City source will become available
during the planning period.
Housing Programs
Program #10 - Housing Code Enforcement Program
The Housing Code Enforcement Division administers the Code Enforcement Program and
works to ensure that the provisions of the City's Municipal Code are followed. The Division's
actions are driven by complaints. However, the Division also is proactive when the resident's
general health, safety and welfare are involved.
The Code Enforcement process typically includes the filing of a complaint with the Code
Enforcement Officer, investigation of the complaint and notification to the property owner to
correct any violation that does exist. The goal of this process is to obtain voluntary compliance;
however, if compliance is not achieved then the City does pursue its available legal remedies.
Program #11 - Home Improvement Program
In December 2012, the City Council decided to discontinue the Home Improvement Program.
This program offered grants up to $7,000 and loans up to $13,000 to help owners rehabilitate
their homes. Over the recent years, the amount of CDBG funds allocated to the City has
decreased by 26%. This decrease coupled with administrative costs that could not be fully
charged to CDBG and which required a General Fund subsidy made the program not
sustainable.
During the planning period, the City may revive the program if it is allocated a greater amount of
CDBG funds and/or another funding source becomes available. The City may, for example,
apply to the CalHome Program which provides financial resources for loans to low or very low
income homeowners. Pursuant to Government Code Section 65583(a)(8) the City would include
weatherization and energy efficiency improvements as part of a housing improvement program.
As stated on the previous page, the quantified objective is the rehabilitation of five owner -
occupied housing units during the planning period. The income distribution is as follows:
Extremely low income — 1 home
Very low income — 2 homes
Low income — 2 homes
Achievement of the objective depends on a funding source. If the amount of CDBG funds
allocated to the City is increased in the future, it is a potential funding source. Other potential
funding sources include the State CalHome Program and other State programs.
3-13
Resolution No 2014-05
Exhibit A
Page 35 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
PROGRAM CATEGORY #5
PROMOTE HOUSING OPPORTUNITIES FOR ALL PERSONS
Section 65583(c)(5) requires that the housing program:
Promote housing opportunities for all persons regardless of race, religion, sex, marital
status, ancestry, national origin, color, familial status, or disability.
1. Housing Needs, Goals, Policies and Objectives
Federal and State fair housing laws prohibit discrimination in the sale, lease, negotiation,
insurance, or financing of housing based on race, color, religion, sex, marital status, familial
status, disability, national origin, ancestry, sexual orientation, source of income or other arbitrary
factor. Housing discrimination complaints may be filed with HUD; the California Department of
Fair Employment and Housing; and the Fair Housing Foundation, which serves many
communities including Rancho Palos Verdes. Other fair housing needs include general housing
counseling and resolving landlord/tenant conflicts.
Goals
Attain a housing market with "fair housing choice," meaning the ability of persons of
similar income levels regardless of race, color, religion, sex, marital status, familial
status, disability, national origin, ancestry, sexual orientation, source of income or
other arbitrary factor to have available to them the same housing choices.
Policies
Continue to promote fair housing opportunities through the City's participation in the
County's Community Development Block Grant Program.
Promote fair housing through the provision of information and referral services to
residents who need help in filing housing discrimination complaints.
Objectives
50 General Housing Counseling/Resolutions
10 Inquiries (about possible housing discrimination)
5 Cases (opened when counseling and inquiries substantiate possible housing
discrimination)
2. Housing Programs
Program #12 - Fair Housing Services Program
The City's Fair Housing Services Program will continue to promote fair housing through its
participation in the County's CDBG Program. The City, in cooperation with the County and the
Fair Housing Foundation (FHF), will continue to make available fair housing services to its
residents. The FHF offers the following services:
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Resolution No 2014-05
Exhibit A
Page 36 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
Discrimination Services
FHF provides the following fair housing services to tenants, home -seekers and housing
providers:
Responding to Discrimination Inquiries and Complaints — screening and counseling
Documenting Discrimination Complaints — opening fair housing cases
Investigating Discrimination Complaints — extensive testing
Resolving Discrimination Complaints — conciliation, mediation, administrative agency
referrals, and litigation
Outreach and Education Services
FHF provides a comprehensive education and outreach program to educate tenants, landlords,
owners, REALTORS, and property management companies on fair housing laws; to promote
media and consumer interest; and to secure grass roots involvement within communities. The
Program encompasses:
Increase Public Awareness — participating in community and school events,
attending conventions, providing staff and information at trainings, staffing clinics,
and media exposure
Conduct Training Sessions for Consumers — conducting 2 -hour Tenant Workshops,
staffing booths, and conducting community presentations
Conduct Training Sessions for Housing Providers — conducting 2 -hour Landlord
Workshops, 4 -hour Certificate Management Trainings, and REALTOR trainings
General Housina (Landlord/Tenant) Services
FHF counsels tenants, landlords, and housing providers on their rights and responsibilities
which include:
Responding to General Housing Inquiries — screening and counseling
Documenting General Housing Inquiries — maintaining data on every client, the
problem and the resolution
Resolving General Housing Inquiries — counsel, pursue habitability cases, provide
unlawful detainer assistance, conduct mediations, and provide appropriate referrals
The City will accomplish the following during the 2013-2021 planning period:
The City will coordinate with the Fair Housing Foundation to hold one Fair Housing
Workshop each year. Each Fair Housing Workshop will have a theme such as
reasonable accommodations and accessibility requirements and target tenants,
property managers, or REALTORS.
Each year the City will work with the Fair Housing Foundation to identify services that
should be emphasized in the upcoming year.
Prepare a summary of the fair housing services provided each year and identify
emerging fair housing issues. The summary will be transmitted to the Planning
Commission and City Council and included in the Housing Element Annual Progress
Report.
3-15
Resolution No 2014-05
Exhibit A
Page 37 of 114
SECTION 3 — HOUSING PROGRAM: NEEDS, GOALS, POLICIES, OBJECTIVES AND PROGRAMS
Program #13 - Fair Housing Information Program
The City will establish and implement a Fair Housing Information Program. The information will
include, but not be limited, to providing:
A Fair Housing brochure that describes fair housing laws and rights. The brochure
will be available at the Community Development Department counter.
A link to the Fair Housing Foundation website
A link to the State Department of Fair Employment and Housing
A link to the U.S. Department of Housing and Urban Development
PROGRAM CATEGORY#6
PROMOTE ENERGY CONSERVATION
Government Code Section 65583(a)(8) states the Housing Element must include:
An analysis of opportunities for energy conservation with respect to residential
development. Cities and counties are encouraged to include weatherization and energy
efficiency improvements as part of publicly subsidized housing rehabilitation projects.
This may include energy efficiency measures that encompass the building envelope, its
heating and cooling systems, and its electrical system.
Program #14 — Energy Conservation Program
Rancho Palos Verdes has taken advantage of a "green" movement in the building and
architectural communities that is fully underway and becoming a growing standard both in price
and consumer demand, as well as through State-wide building requirements. In order to
encourage the construction of "green" buildings, the City of Rancho Palos Verdes adopted a
voluntary program for Green Building Construction that applies to residential and non-residential
projects. The City is offering permit streamlining as well as up to a 50% rebate of Planning and
Building Permit fees for voluntary participation in the City's Green Building Construction
program. The program is designed for new construction or major remodels, whereby more than
50% of the interior and exterior walls of an existing structure will be removed. Improvement such
as renewable energy systems and small wind energy systems are encouraged.
3-16
Resolution No 2014-05
Exhibit A
Page 38 of 114
CITY OFLip RAI`ICHO PALOS VERDES
H0OSESHOOSES
2013-2021 HOUSING ELEMENT
APPEND/CES
Resolution No 2014-05
Exhibit A
Page 39 of 114
City of Rancho Palos Verdes
2013-2021 Housing Element of the General Plan
Appendix A
Table of Contents
A. Introduction A-1
B. Housing Needs Assessment A-2
1. Introduction and Summary A-2
2. Housing Characteristics A-3
a. Existing Housing Stock by Occupancy Status A-3
b. Numbers and Types of Units A-4
c. Condition of the Existing Housing Stock A-4
3. Household Characteristics A-5
a. Tenure — Owners and Renters A-5
b. Level of Payment Compared to Ability to Pay A-6
1. 2013 Income Limits for Income Groups A-6
2. Cost Burdened and Severely Cost Burdened Owners and Renters A-6
3. Extremely Low Income Cost Burdened and Severely Cost Burdened
Owners and Renter A-8
4. Housing Options and Resources A-8
c. Overcrowding A-8
4. At -Risk Housing Assessment A-9
5. Special Housing Needs A-10
a. Elderly A-10
b. Persons with Disabilities A-12
c. Persons with Developmental Disabilities A-15
d. Large Families A-16
e. Farmworkers A-17
f. Female Householders A-18
g. Families and Persons in Need of Emergency Shelter A-19
6. Projected Housing Needs A-19
a. Population Trends and Projections A-19
b. Employment Trends and Projections A-19
c. Share of Regional Housing Needs A-20
1. Citywide Share A-20
2. Extremely Low Income Housing Need A-21
Resolution No 2014-05
Exhibit A
Page 40 of 114
C. Sites Inventory and Analysis A-21
1. Introduction A-21
2. Sites to Accommodate the City's Share of the Regional Housing Need A-22
a. Site to Accommodate the Above Moderate Income Housing Need A-22
b. Available Sites to Accommodate the Moderate Income Housing Need A-22
c. Available Sites to Accommodate the Lower Income Housing Need A-24
3. Environmental Conditions A-24
4. Public Facilities and Services A-25
D. Housing Market Constraints A-26
1. Introduction A-26
2. Land Costs A-28
3. Construction Costs A-28
a. Components of Construction Costs A-28
4. Availability of Financing A-30
a. Financing Availability Based On Interest Rates A-30
b. Financing Availability Based on HMDA Data A-30
1. Introduction A-30
2. 2011 Loan Applications A-31
3. Home Improvement Loan Application — 2011 A-32
4. Reasons for Loan Denial -2011 A-32
5. Monthly Housing Rents and Sales Prices A-33
a. Apartment Rental Housing Market A-33
b. Housing Sales Prices A-35
E. Governmental Constraints A-37
1. Actions Taken to Remove Constraints Identified by the 2008-2014 Housing ElementA-37
a. Emergency Shelters A-37
b. Transitional and Supportive Housing A-38
c. Supportive Housing A-38
d. Single Room Occupancy Houisng A-38
e. Reasonable Accommodation Procedure A-38
f. Density Bonus Ordinance A-39
g. Licensed Residential Care Housing A-39
h. Farm Employee Housing A-39
2. Description of Factors Found Not to be Governmental Constraints A-39
a. Land Use Controls A-39
1. Zoning A-39
2. Minimum Dwelling Unit Sizes A-41
3. Design Criteria A-41
Resolution No 2014-05
Exhibit A
Page 41 of 114
4. Open Space Requirements A-41
5. Parking Requirements A-41
6. Specific Plans A-42
7. Second Unit Development Standards A-42
8. Affordable Housing Land Use Controls A-42
9. Moratoria and Prohibitions Against Multifamily Housing Developments A-43
10. Growth Controls, Urban Growth Boundaries A-43
b. Building Codes and Enforcement A-43
c. On- and Off -Site Improvements A-44
1. On -Site Improvements A-44
2. Off -Site Improvements A-45
d. Fees and Exactions A-46
1. Fees A-46
2. Exactions A-48
e. Processing and Permit Procedures A-48
1. Residential Single -Family Zones A-48
2. Geology Reports for Single -Family Residences A-48
3. Multifamily Rental Housing A-48
4. Site Plan Review A-48
5. Processing Time A-49
6. Overlay Zones A-49
3. Efforts to Remove Constraints on Housing for the Disabled A-50
a. Reasonable Accommodation Procedure A-51
b. Definition of Family A-51
c. Residential Care Facilities for Seven or More Persons A-51
d. Siting or Separation Requirements for Licensed Residential Care Facilities A-52
e. Parking Requirements for Persons with Disabilities A-53
f. Permits and Processing A-53
1. Requesting Retrofit for Accessibility A-53
2. Ensuring Compliance with all State Laws Regulating Requirements for
Licensed Residential Care Facilities A-53
3. Conditions or Use Restrictions for Licensed Residential Care Facilities
with Greater than 6 persons or Group Homes that will be Providing
Services On -Site: A-54
g. Building Codes A-54
1. Building Code Adoption and Amendments A-54
2. Universal Design Elements A-54
3. Building Code Reasonable Accommodations A-55
4. Constraints on Meeting Share of the Regional Housing Need A-55
F. Progress Report A-55
1. Appropriateness of Goals and Policies A-55
2. Effectiveness of the Element A-61
G. Coastal Zone Requirements A-64
Resolution No 2014-05
Exhibit A
Page 42 of 114
List of Tables
A-1 City of Rancho Palos Verdes Housing Stock by Occupancy Status April 2000,
April 2010 and January 2013 A-3
A-2 City of Rancho Palos Verdes Housing Stock by Type of Unit April 2010 and
January 2012 A-4
A-3 City of Rancho Palos Verdes Age of Housing Stock by Year Built -2010 A-5
A-4 City of Rancho Palos Verdes Tenure by Age of Householder A-6
A-5 Los Angeles County 2013 Annual Income Limits Adjusted by Household Size A-7
A-6 Los Angeles County Income Limits for a 3 -Person Household A-7
A-7 City of Rancho Palos Verdes Lower Income Households Cost Burdened and Severely
Cost Burdened by Tenure: 2005-2009 CHAS A-7
A-8 City of Rancho Palos Verdes Crowding (Households with More than One Occupant Per
Room) by Tenure A-9
A-9 City of Rancho Palos Verdes Cost Burdened Elderly Households by Income Group
and Tenure A-11
A-10 City of Rancho Palos Verdes Disability Status of Civilian Non -institutionalized Population
by Age Group — April 2010 A-15
A-11 City of Rancho Palos Verdes Large Families by Tenure — 2010 A-17
A-12 City of Rancho Palos Verdes Cost Burdened Large Families by Tenure and Income
Group A-17
A-13 City of Rancho Palos Verdes Female Householders by Tenure — 2010 A-18
A-14 City of Rancho Palos Verdes Population Growth Trends - 1980 to 2013 A-20
A-15 City of Rancho Palos Verdes Civilian Labor Force and Employment Characteristics
For Population 16 Years and Over: 2000 and 2010 A-20
A-16 City of Rancho Palos Verdes Share of Regional Housing Needs January 1, 2014 —
October 1, 2021 A-21
A-17 City of Rancho Palos Verdes Sites Inventory and Analysis for Above Moderate Income
Housing Units- February 2013 A-22
A-18 City of Rancho Palos Verdes Size (SF) of Second Unit Projects A-23
A-19 City of Rancho Palos Verdes Monthly Rents and Rent per Square Foot of
1 -Bedroom Apartment Units A-23
A-20 City of Rancho Palos Verdes Sites Inventory and Analysis for Lower Income
Housing Units — February 2013 A-24
A-21 Los Angeles County: Lower Income (60% of Median Income) Affordable Housing
Monthly Rents: 2013 A-27
A-22 Building Valuation Data (BVD) Construction Costs per Square Foot for
Residential Construction A-29
A-23 Average Mortgage Rates Weekly Survey of 20 Southland Lenders —
As of December 26, 2012 A-30
A-24 City of Rancho Palos Verdes Conventional Loan Denial Rates by
Census Tracts — 2011 A-31
A-25 City of Rancho Palos Verdes FHA/VA Loan Denial Rates by Census Tracts — 2011A-32
A-26 City of Rancho Palos Verdes Reasons for Loan Denial by Type of Loan — 2011 A-33
A-27 City of Rancho Palos Verdes Apartment Rent Survey December 2012 A-34
A-28 City of Rancho Palos Verdes Summary of Home Sales: 2012 A-35
A-29 City of Rancho Palos Verdes Homes Sales 1/1/2012-12/17/2012 A-36
A-30 Single -Family Residential Development Standards A-40
A-31 Multiple -Family Residential Development Standards A-40
A-32 City of Rancho Palos Verdes 2008-2014 Housing Element Evaluation of the
Appropriateness of Goals and Policies A-57
Resolution No 2014-05
Exhibit A
Page 43 of 114
A-33 City of Rancho Palos Verdes 2008-2014 Housing Element Effectiveness A-61
CITY OFLip RAI`ICHO PALOS VERDES
H0OSESHOOSES
Resolution No 2014-05
Exhibit A
Page 44 of 114
APPENDIX A
HOUSING NEEDS, SITES,
CONSTRAINTS & PROGRESS
Resolution No 2014-05
Exhibit A
Page 45 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
A. INTRODUCTION
Housing Needs Assessment
Sites Inventory and Analysis
Housing Market Constraints and Analysis
Governmental Constraints Analysis
Progress Report
The Housing Needs Assessment (pages A-2 to A-21) discusses:
Existing Needs (housing condition, cost burdened, crowding, at risk housing)
Special Needs (elderly, disabled, large families, farmworkers, female householders, and
homeless
Projected Needs (new construction)
The Sites Inventory and Analysis (pages A-21 to A-24) describes the sites that can
accommodate the need for lower-income, moderate -income and above moderate -income
housing.
The Housing Market Constraints Analysis (pages A-25 to A-34) describes the following
components of housing costs:
Land
Construction
Financing
Existing home sales
The Governmental Constraints Analysis (pages A-35 to A-54) describes actual and potential
constraints on housing production and improvement such as:
Land use controls
Building codes and their enforcement
Site improvements
Fees and exactions required of developers
Local processing and permit procedures
Constraints on housing for persons with disabilities
Constraints on meeting regional share housing needs
The Progress Report (pages A-54 to A-61) describes the appropriateness of the goals and
policies of the 2008-2014 Housing Element and the progress made toward implementation of
the programs included in the prior element.
A-1
Resolution No 2014-05
Exhibit A
Page 46 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
B. HOUSING NEEDS ASSESSMENT
1. INTRODUCTION AND SUMMARY
In addition to the Introduction and Summary, the Housing Needs Assessment describes the
following:
Part B - housing characteristics including the number and types of housing units and
the condition of housing.
Part C — household characteristics including the number of households, level of
payment compared to ability to pay, and overcrowding.
Part D - an analysis of existing affordable housing developments at risk of converting
to market rate housing during the next 10 years.
Part E - an analysis of special housing needs experienced by populations such as
the elderly; persons with disabilities including those with developmental disabilities;
large families; farmworkers; families with female heads of households; and families
and persons in need of emergency shelter.
Part F - an analysis of population and employment trends and of projections of
existing and projected housing needs for all income levels. The existing and
projected needs include the City's share of the regional housing need.
Key findings of the Housing Needs Assessment include:
Housina and Household Characteristics and At -Risk Housina
16,221 housing units comprise the existing housing stock
Single-family detached homes comprise about 77% of the existing housing stock
About 400 housing units need rehabilitation and 10 need replacement
Of the occupied housing units, 80.2% are owner -occupied and 19.2% are renter
occupied
About 1,900 lower income households are cost burdened and 1,500 are severely
cost burdened
More lower-income owners (about 1,200) than renters (about 700) experience
housing costs more than they cannot afford
191 households are overcrowded and renters comprise the majority of crowded
households
The City does not have an affordable multifamily rental housing complex potentially
at -risk of converting to market rate housing
Special Housina Needs
9% of elderly owners (555/6,040) and 27% of elderly renters (194/723 are cost
burdened — that is, paying more than they can afford for housing
About 3,300 disabled persons live in Rancho Palos Verdes
The elderly have the highest rate of disabilities as 22% of all people 65 years of age
or older report one or more disability
247 developmentally disabled residents are served by the Harbor Regional Center
Mental retardation/intellectual disability is the most prevalent condition experienced
by the City's 247 residents
10% of the large family owners (109/1,087) and 13.5% of large family renters
(40/297) are cost burdened
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Y There are no farmworker jobs located within Rancho Palos Verdes
> There are 9 residents employed in the farming related industries
Y About 3,300 female householders live in Rancho Palos Verdes, which is about 20%
of all the City's householders
Y About 1,200 female householders live with a family and 1,900 live alone
> The City's homeless estimate is 12 persons per year.
Proiected Housing Needs
• SCAG's 2012 RTP Forecast shows an increase of 100 persons and 100 households
between 2008 and 2020
• SCAG's 2012 RTP Forecast shows an increase in employment of 400 jobs between
2008 and 2020.
• 31 housing units is the City share of the regional housing need, which includes 13
units for lower income households
2. HOUSING CHARACTERISTICS
Part B provides information on the:
> Existing Housing Stock by Occupancy Status
• Numbers and Types of Housing Units
a. Existing Housing Stock by Occupancy Status
In January 2013, 15,602 housing units were occupied while 619 dwellings were vacant. The
total housing stock is comprised of 16,221 housing units, which is an increase of 512 dwellings
since the April 2000 Census. The occupancy status and total housing stock in 2013 is slightly
higher than reported in the April 2010 Census. Table A-1 reports the detailed statistics.
Table A-1
City of Rancho Palos Verdes
Housing Stock by Occupancy Status
April 2000, April 2010 and January 2013
• ccupancy Number of Number of member o
Status _ Housing Units 200 Housing Units 201 Housing Units 201
Occupied
Vacant
Total
Percent Vacant
15,256
453
15,709
2.88%
15,561
618
16,179
3.82%
15,602
619
16,221
3.82%
Source Census 2000 Summary File 1 (SF 1), DP -1 Demographic Profile, Housing Occupancy
2010 Census Summary File 1, DP -1 Demographic Profile, Housing Occupancy
State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties,
and the State, 2011 and 2012, with 2010 Benchmark Sacramento, California, May 2013
Table construction by Castaneda & Associates
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b. Numbers and Types of Units
The composition of the housing stock in 2013 is about the same as reported by the April 2010
Census. Single-family detached homes comprise just over three-fourths (77%) of the housing
stock. Housing units in multi -family structures of five or more dwellings comprise 14.5% of the
housing stock. The housing stock contains a few mobile homes. Table A-2 reports the detailed
data.
Table A-2
City of Rancho Palos Verdes
Housing Stock by Type of Unit
April 2010 and January 2013
1 unit, detached 12,510 77.3% 12,518 77.1%
1 unit, attached 1,024 6.3% 1,024 6.3%
2 to 4 units 301 1.9% 301 1.9%
1 5+ units 2,319 14.3% 2,353 14.5%
1 Mobile homes* 25 .2% 25 .2% 1
1 Total 16,179 100.0% 16,221 100.0%1
*A mobile home park is not located in Rancho Palos Verdes It is
assumed these mobile home units are dispersed throughout the City
State of California, Department of Finance, E-5 Population and
Housing Estimates for Cities, Counties, and the State, 2011 and
2012, with 2010 Benchmark Sacramento, California, May 2013
Table construction by Castaneda & Associates
c. Condition of the Existing Housing Stock
HCD guidance indicates that housing that is 40+years old — built before 1970 -- is an indicator of
the maximum housing rehabilitation need. Table A-3 shows the age of the housing stock. About
10,400 housing units were constructed before 1970, a number that probably overstates
dramatically the actual housing rehabilitation need.
In 2000 a housing condition survey found that about 700 housing units were in need of
rehabilitation. About 80% of the 700 housing units had a Moderate 3 Rehabilitation Need — that
is, replacement of a deteriorated roof. Only nine housing units had a Major Rehabilitation Need
— that is, several minor and moderate level repairs.
Taking into account the home improvements made between 2000 and 2007, Census 2010 age
of housing data, and estimates of the prior Housing Element, the City's housing rehabilitation
need in 2007 was estimated to range from 300 to 500 housing units.
Between 2007 and 2012, 42 homes were rehabilitated through CDBG-funded deferred loans
and grants. During this same time period, about 300 homeowners obtained financing for home
improvement loans. It is not known if the loan proceeds were expended on addressing housing
rehabilitation needs, remodeling, or non-structural improvements. Based on all of the above, the
2012 estimate of housing units in need of rehabilitation is about 400.
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Table A-3
City of Rancho Palos Verdes
Age of Housing Stock by Year Built — 2010
ir�l�■.�Kk.�►a=l.i�t���►i.uu•ia�•��
2005 or later 145 .90%
2000 to 2004 226 1.41%
1990 to 1999 607 3.75%
1980 to 1989 853 5.27%
1970 to 1979 3,922 24.24%
1960 to 1969 6,448 39.85%
1950 to 1959 3,584 22.15%
1940 to 1949 193 1.19%
1939 or earlier 201 1.24%
Total 16,179 100.0%
Note The American Community Survey was used to compute the
percentage of units in each age cohort The ACS percentages then
were applied to the 2010 Census count of units [3,703] to estimate
the number of housing units by year structure built
Source 2008-2010 American Community Survey 5 -Year Estimates,
Table B25034, Year Structure Built
Table construction by Castaneda & Associates
Housing that is beyond reasonable repair or in a dilapidated condition usually requires
replacement, not rehabilitation. Often, housing lacking complete plumbing and/or kitchen
facilities is an indicator of replacement needs. HUD estimates that 170 housing units are lacking
complete plumbing or kitchen facilities. The 2009-2011 American Community Survey estimates
104 dwellings are lacking complete plumbing facilities and 476 are lacking complete kitchen
facilities. All of these estimates seem to overstate the magnitude of the housing replacement
need.
In 2000, about 10 dwellings were in such poor physical condition that they merited replacement
instead of rehabilitation. Over the years some of these dwellings may have been replaced with
new housing and other dwellings may have deteriorated to the degree they ought to be
replaced. Therefore, the 2012 estimate of housing units in need of replacement is 10.
3. HOUSEHOLD CHARACTERISITICS
Part 3 examines the following household characteristics:
• Tenure — owners and renters
➢ Level of payment compared to ability to pay
• Overcrowding
a. Tenure — Owners and Renters
Tenure refers to whether housing units are occupied by owners or renters. Census 2010 reports
15,561 occupied housing units — 12,485 owners (80.2%) and 3,076 renters (19.8%). Table A-4
shows that the majority of households 35+ years of age are owners. Conversely, the younger
households (15 to 34 years of age) are predominantly renters.
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Table A-4
City of Rancho Palos Verdes
Tenure by Age of Householder
15 to 24 years 32 0.3% 62 2.0% 94 0.6%
25 to 34 years 193 1.5% 316 10.3% 509 3.3%
35 to 44 years 1,354 10.8% 745 24.2% 2,099 13.5%
45 to 54 years 3,010 24.1% 932 30.3% 3,942 25.3%
55 to 64 years 2,652 21.2% 425 13.8% 3,077 19.8%
65 years and over 5,244 42.1% 596 19.4% 5,840 37.5%
Total 12,485 100.0% 3,076 100.0% 15,561 100.0%
Source Census 2010, Summary File 1, Table QT -H2 Tenure, Household Size and Age of Householder
Table construction by Castaneda & Associates
b. Level of Payment Compared to Ability to Pay
Level of payment compared to ability to pay measures the number and percentage of
households who are paying more than they can afford for housing. This problem is referred to
as "overpaying" or "cost burdened." For lower income households, overpaying occurs when
they pay 30% or more of their income on housing costs. "Severe" overpaying is when lower
income households spend 50% or more of their income on housing costs.
1. 2013 Income Limits for Income Groups
Table A-5 shows the 2013 household income limits for four income groups, adjusted by
household size —
• Extremely low income
> Low income
• Lower income
> Moderate income
<30% of the LA County median household income
30%-50% of the LA County median household income
50%-80% of the LA County median household income
80%-120% of the LA County median household income
The income limits are important because they determine eligibility for City programs that provide
rehabilitation financial assistance to owners and renters.
Table A-6 shows the annual income and monthly income for a 3 -person household in each of
the four income groups. For instance, the monthly income of a lower-income 3 person
household ranges between $3,205 and $5,062. Based on 30% of income expended on housing
costs, such households could afford monthly payments in the range of $961 to $1,518.
2. Cost Burdened and Severely Cost Burdened Owners and Renters
Overpaying is often cited as one of the major problems confronting the lower income population.
Table A-7 shows that about 1,900 lower income households are cost burdened and about 1,500
are severely cost burdened. More lower-income owners (about 1,200) than renters (about 700)
experience housing costs exceeding their ability to pay. SCAG estimates, based on American
Survey data, that a total of 5,583 households are cost burdened — 1,319 renters and 4,264
owners.
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Table A-5
Los Angeles County
2013 Annual Income Limits Adjusted by Household Size
{# of persons) Lbw Income Income Incom
.. -
;.-
a AA
1 person $17,950 $29,900 $47,850 $54,450
2 persons $20,500 $34,200 $54,650 $62,200
3 persons $23,050 $38,450 $60,750 $70,000
4 persons $25,600 $42,700 $68,300 $77,750
5 persons $27,650 $46,150 $73,800 $83,950
6 persons $29,700 $49,550 $79,250 $90,200
7 persons $31,750 $52,950 $84,700 $96,400
8 persons $33,800 $56,400 $90,200 $102,650
Source California Department of Housing and Community Development, Year 2013
Income Limits, February 25, 2013
Table construction by Castaneda & Associates
Table A-6
Los Angeles County
Income Limits for a 3 -Person Household
Extremely Low less than $23,050 less than $1,920
1 Very Low $23,051-$38,450 $1,921-$3,204
1 Lower $38,451-$60,750 $3,205-$5,062
1 Moderate $60,751-$70,000 $5,063-$5,833
1 Above Moderate $70,001+ $5,834+
Source Table A-5
Table construction by Castaneda & Associates
Table A-7
City of Rancho Palos Verdes
Lower Income Households Cost Burdened and
Severe Cost Burdened by Tenure: 2005-2009 CHAS
Source U S Department of Housing and Urban Development, 2005-2009 CHAS
(Comprehensive Housing Affordability Strategy)
Table construction by Castaneda & Associates
A-7
Severely Co
Percent Severely
Burdened
Cost Burdened
Owner
1,194
925
77.5%
Renter
719
595
82.8% 1
Total
1.913
1,520
79.5% 1
Source U S Department of Housing and Urban Development, 2005-2009 CHAS
(Comprehensive Housing Affordability Strategy)
Table construction by Castaneda & Associates
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3. Extremely Low Income Cost Burdened and Severely Cost Burdened Owners and Renter
Extremely low income (ELI) households are those whose income is less than 30% of the Los
Angeles County median household income. An extremely low income 3 -person household is
one whose annual income is less than $22,800 or less than $1,900 per month. (Refer to Table
A-5.)
HUD CHAS data estimates there are 554 extremely low income households who are cost
burdened — 329 owners and 225 renters. About 93% (305/329) of the owners and 100%
(225/225) of the renters are severely cost burdened. The CHAS data indicates that the total
number of ELI households is 980 (625 owners and 355 renters).
The elderly and small related families comprise about 46% and 34% of the cost burdened owner
households. Small related families comprise 56% of all cost burdened renter households.
4. Housina Options and Resources
Housing options for cost burdened owners involve reducing housing and non -housing costs to a
more affordable level. For some of these households, re -financing to lower monthly loan
payments may be an option. However, it is possible that many of these owners are under water
— their homes having a value less than the mortgage loan owed. Therefore, they do not have a
re -financing option available to them. It also may be possible that some owners could rent a
bedroom as a means of increasing their monthly income.
Housing options for cost burdened renters include the market rate and rent restricted
apartments. Apartment vacancies and turnover is rare in Rancho Palos Verdes. Some renters
may apply for Section 8 rental assistance and be placed on the County of Los Angeles Housing
Authority's waiting list.
c. Overcrowding
Overcrowding is one result of the shortage of interior living space. Overcrowding reflects the
financial inability of households to buy or rent housing units having enough space for their
needs. Consequently, overcrowding is considered a household characteristic instead of a
housing structural condition. An "overcrowded" housing unit does not necessarily mean it is in
inadequate physical condition. Overcrowding also may be a temporary situation since some
households will move to larger housing units to meet space requirements.
HUD CHAS provides estimates of the number of occupants per room based on the 2005-2009
American Community Survey (ACS). The following definitions apply to this topic:
Occupants per room is obtained by dividing the number of people in each occupied
housing unit by the number of rooms in the unit. The figures show the number of
occupied housing units having the specified ratio of people per room. Although the
Census Bureau has no official definition of crowded units, many users consider units
with more than one occupant per room to be crowded.
For each unit, rooms include living rooms, dining rooms, kitchens, bedrooms, finished
recreation rooms, enclosed porches suitable for year-round use, and lodger's rooms.
Excluded are strip or pullman kitchens, bathrooms, open porches, balconies, halls or
foyers, half -rooms, utility rooms, unfinished attics or basements, or other unfinished
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space used for storage. A partially divided room is a separate room only if there is a
partition from floor to ceiling, but not if the partition consists solely of shelves or cabinets.
Table A-8 shows there are almost 200 crowded households. Of this total, about 95% are
"crowded" and 5% are "severely crowded." Renters comprise the majority of crowded
households. However, crowding is not a large problem as only about 1.2% of all households are
crowded.
Table A-8
City of Rancho Palos Verdes
Crowding (Households with More than
One Occupant Per Room) by Tenure
1.01 to 1.50
occupants per
room
1.51 or more
occupants per
room
Total
90 91 181
0 10 10
90 101 191
Source U S Department of Housing and Urban
Development, 2005-2009 CHAS (Comprehensive
Housing Affordability Strategy)
Table construction by Castaneda & Associates
Crowded households are an indicator of the need for an increase in living space, rooms, and/or
bedrooms. Under fair housing law, the occupancy limits are 2 persons per bedroom plus one
more person. Thus, a 2 -bedroom unit can accommodate five people and a 3 -bedroom unit can
accommodate seven people. Two- and three-bedroom units comprise the majority (71 %) of the
housing units found in the City's apartment communities.
4. AT -RISK HOUSING ASSESSMENT
At -risk housing refers to multifamily rental housing complexes that receive governmental
assistance and which can change to market rate housing by 2024. The City has no rental
housing at risk of conversion to market rate housing during the 2014-2024 period.
There are seven owner affordable housing units located within the Villa Capri development
(Tract No. 44239). The units were set-aside for families having annual incomes less than the
City's median income. The seven affordable units cannot be converted to market rate housing
until 2019.
Four new affordable housing units were developed as a part of the Trump National Golf Club.
These units are affordable for 30 years from the date of final permit, which happened on
January 14, 2005. Thus, they are affordable until 2035.
In 2009, the City approved the Crestridge Senior Affordable Housing project, also known as
Mirandela. A total of 33 lower income units were approved to accommodate extremely low, very
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low and low income housing units. The project was completed and occupied in 2010 and has a
55 -year affordability term.
5. SPECIAL HOUSING NEEDS
Special housing needs refer to the needs of the following populations:
Elderly
Persons with disabilities
Persons with developmental disabilities
Large families
Farmworkers
Families with female heads of household
Families and persons in need of emergency shelter
a. Elderly
Elderly special housing needs include, but are not limited, to:
Affordable housing
Units with accessibility modifications
Units with special accommodations for live-in caretakers
Housing developments that provide on-site supportive services
Assistance in locating housing or in securing shared housing
Housing located near transportation, shopping and medical services
The special housing needs of seniors are unique because of the aging process. The housing
needs of seniors are often the result of the age, gender, health, and economic status of elderly
couples and individuals.
A County study of senior housing needs explained that:
Due to the economic downturn and general cost of living increases, seniors are the
most vulnerable as they move into their retirement years with the hopes of using their
important property asset to finance their golden years. Unfortunately this plan does not
always work out. The needs assessment survey analyzed how seniors were affected by
energy/utility costs where they were living, and what specific housing challenges they
encounter. 1 in 10 seniors (10%) reported having trouble paying rent. For Los Angeles
County's seniors, the issues of housing affordability and the need for home maintenance
services were prevalent. 25% of respondents reported needing help with minor home
repairs. 10% had problems finding an apartment and 10% had problems paying rent.
The list below describes the percent of survey respondents with a need:
Affordability
✓ Has problems meeting mortgage/insurance/maintenance payments 7%
✓ Has problems meeting condominium fee payments 2%
✓ Has problems finding an affordable apartment 10%
✓ Has problems paying rent 10%
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> Safety
✓ Has problems with sufficient lighting 3%
✓ Has problems with safety issues 5%
> Home maintenance
✓ Needs help with minor home repairs 25%
✓ Has problems with major homeowner repairs (plumbing/electrical) 17%
✓ Has problems with minor homeowner repairs (leaky faucets) 16%
Overall housing needs were about the same for all ages of the older adult respondents. The
oldest residents, in greatest proportions, reported home maintenance needs. General home
safety issues were roughly equivalent across all groups.
According to the 2010 Census, there are 6,763 elderly households (62+ years of age) —
> 6,040 owners
• 723 renters
Table A-9 shows the number of cost burdened elderly households by tenure and income group.
Table A-9
City of Rancho Palos Verdes
Cost Burdened Elderly Households by Income Group and Tenure
Source U S Department of Housing and Urban Development, 2005-
2009 CHAS (Comprehensive Housing Affordability Strategy)
Table construction by Castaneda & Associates
The HUD CHAS data estimates that 749 elderly households are cost burdened —
• 555 owners
> 194 renters
Therefore, 9% of elderly owners (555/6,040) and 27% of elderly renters (194/723) are cost
burdened.
While 555 elderly owners are overpaying, there are no ongoing programs to provide monthly
financial assistance to such owners. Some homeowners may benefit from the City's housing
rehabilitation programs and some may need financial counseling to reduce overpaying.
Rental housing assistance for elderly renters is available from the Section 8 Housing Choice
Voucher Program which is administered by the County of Los Angeles Housing Authority.
A-11
Extremely Low (0-30%)
205
80
285
Very Low (31-50%)
210
50
260
Low (51-80%)
140
64
204
Total
555
194
749 1
Source U S Department of Housing and Urban Development, 2005-
2009 CHAS (Comprehensive Housing Affordability Strategy)
Table construction by Castaneda & Associates
The HUD CHAS data estimates that 749 elderly households are cost burdened —
• 555 owners
> 194 renters
Therefore, 9% of elderly owners (555/6,040) and 27% of elderly renters (194/723) are cost
burdened.
While 555 elderly owners are overpaying, there are no ongoing programs to provide monthly
financial assistance to such owners. Some homeowners may benefit from the City's housing
rehabilitation programs and some may need financial counseling to reduce overpaying.
Rental housing assistance for elderly renters is available from the Section 8 Housing Choice
Voucher Program which is administered by the County of Los Angeles Housing Authority.
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However, no apartments surveyed in December 2012 have monthly rents below the Section 8
maximum rent ceilings.
b. Persons with Disabilities
Special housing needs may include, but are not limited, to:
Affordable housing
Units with accessibility modifications
Units with special accommodations for live-in caretakers
Housing developments that provide supportive services
Units accessible to public transportation
Assistance in locating housing or in securing shared housing
Housing with design features that facilitate mobility and independence
The majority of housing units in most communities lack features such as ramps, extra wide
doors, raised toilets, hand rails, lowered counters, or slip -resistant floors that would make them
suitable for, or readily adaptable, to people with mobility limitations and people using assistive
technology. The majority of existing dwellings are inaccessible to people with a mobility
impairment.
Housing constructed after March 13, 1991 needs to comply with the accessibility standards of
the Americans with Disabilities Act (ADA). Real estate property profiles indicate that none of the
apartment communities were built after March 13, 1991. Most apartments were built in the late
1960s and early 1970s.
The City contacted the State Independent Living Council (SILC). The SILC is presently
conducting a Needs Assessment Survey of disabled people living in California. The survey
seeks to determine the "areas of need" which are most important to disabled people. The "areas
of need" listed in the survey include, but are not limited, to:
Housing
Transportation
Emergency Services
Health Care
Health Insurance
Personal Assistance Services
Accessibility
The survey also asks respondents to indicate the county they live in, type of disability or
disabilities, gender, age and ethnicity.
The survey results will be published in the next few months.
Every three years the SILC conducts a statewide needs assessment study to inform the
development of the triennial State Plan for Independent Living (SPIL) required under Title 34 of
the Code of Federal Regulation, Part 364.42. The most recent Needs Assessment Study was
completed in 2009.
With respect to unmet service needs, the 2009 Needs Assessment Study clearly shows that
people with disabilities are severely impacted by economic circumstances. As the economy has
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soured and state budget cuts have been made, the following unmet needs have become
exacerbated, affecting older adults, working -aged people with disabilities, and children with
disabilities:
Housing has become less affordable, especially near locations where independent
living services are available;
Public and other forms of transportation have become more costly and less
accessible due to eligibility restrictions;
Health care co -pay and premium costs have increased and the availability of
providers accepting Medi -Cal and Medicare has decreased; and
Other unmet needs persist, such as the need for personal assistance services;
information and referral; peer support; employment; and legal advocacy for children
with multiple disabilities in the schools, the mental health system and the Medi -Cal
payment system.
According to the 2009 Needs Assessment Study.
The top issue, housing, was often tied to public benefits in that the lack of housing
vouchers, e.g., Section 8 vouchers and other rent subsidies, combined with low vacancy
rates, meant that many consumers could not afford housing or faced financial hardships
in other areas in order to pay for housing. Housing and transportation were intertwined
because affordable housing was often located far from independent living services and
other resources offered in urban centers. For some, a key housing concern was the lack
of universal design, which in some respects resonates with the frequently expressed
need for home repairs among older adults as they become increasingly frail and
encounter trouble living in their standard -designed homes. The lack of accessible and
affordable housing limited some ILCs from acting aggressively in transitioning nursing
home residents and others into the community.
Source: State Independent Living Council, 2009 Statewide Needs Assessment for
People Living with Disabilities, 40 pages
The City also reviewed the State Plan for Independent Living (Fiscal Years 2011-2013). Among
the key goals of the Plan are the following:
Advancing Olmstead
Strengthen and Advance the Independent Living (IL) Network
Improvement for the Underserved and Underrepresented
Increasing Capacity for Educating Policy Makers
Improve Services to Older Individuals who are Blind
Advancing Olmstead refers to creating an environment in which —
People with disabilities choose from a variety of options for community-based living in
housing, personal care assistance, transportation, with the aid of Assistive Technology.
Olmstead refers to the June 1999 Supreme Court ruling in Olmstead v. L.C.. 527 U.S. 581
(1999), where the Court found that, under certain circumstances, the Americans with Disabilities
Act (ADA) requires states to provide community-based treatment for persons with disabilities.
The decision provided that Title II of the ADA requires states to place, whenever possible,
qualified individuals with mental disabilities in community settings rather than in institutions.
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Further, states were encouraged to develop "comprehensive, effective working plans" aimed at
providing services to individuals with disabilities in the most integrated settings possible.
Executive Order 13217 and the New Freedom Initiative, both briefly described below, also
promote community-based initiatives for individuals with disabilities.
President George W. Bush announced the New Freedom Initiative on February 1, 2001, as a
means to promote full access to community life via the implementation of the Olmstead
Decision. This initiative was part of the Administration's efforts to remove the barriers to
community living that are present in the lives of persons with disabilities. It proposed six broad
objectives:
increase access to assistive and universally designed technologies;
expand educational opportunities;
promote homeownership;
integrate Americans with disabilities into the workforce;
expand transportation options; and
promote full access to community life.
Executive Order 13217 (Community -Based Alternatives for Individuals with Disabilities), signed
by President Bush on June 18, 2001, directs federal agencies to work with states to ensure
compliance with the Olmstead Decision and the ADA. The Executive Order has a wider scope
than the Olmstead Decision by targeting all persons with disabilities, rather than only those with
mental disabilities. In addition, the Executive Order directed the Department of Housing and
Urban Development, the Department of Health and Human Services, the Department of Justice,
the Department of Education, the Department of Labor, and the Social Security Administration
to —
...evaluate the policies, programs, statutes and regulations of their respective agencies to
determine whether any should be revised or modified to improve the availability of
community-based services for qualified individuals with disabilities.
The collaborative efforts are designed to ensure that HUD and the other designated agencies
work together to integrate persons with disabilities into local communities.
The SILC considered the potential impact on the independent living network of the unfunded
federal mandate to serve "Olmstead transition candidates," that is, nursing home residents and
other institutionalized persons who wish to return to the community. Center for Medicare and
Medicaid Services data from the third quarter of 2009 suggest that slightly more than 25,000
Californians who are currently in nursing homes would like to be back in their respective
communities. As it happens, that number is very close to the total number of consumers
currently served each year by the entire ILC system. Were all 25,000 to move out of their
nursing homes and to seek ILC services to enable them to do so, they would more than double
the statewide consumer population currently served by ILCs — effectively inundating the service
delivery system.
The 2010 American Community Survey asks respondents about six different types of
disabilities:
Hearing difficulty — "deaf or [had] serious difficulty hearing."
Vision difficulty — "blind or [had] serious difficulty even when wearing glasses."
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Cognitive difficulty — "serious difficulty concentrating, remembering, or making
decisions."
Y Ambulatory difficulty — "serious difficulty walking or climbing stairs."
> Self-care difficulty — "difficulty dressing or bathing."
Y Independent living difficulty — "difficulty doing errands alone such as visiting a
doctor's office or shopping."
About 3,300 disabled persons live in Rancho Palos Verdes. The elderly have the highest rate of
disabilities as about 22% of all people 65 years of age or older report one or more disability.
Table A-10 shows the number and percentage of disabled persons by age group.
Table A-10
City of Rancho Palos Verdes
Disability Status of Civilian Non -institutionalized
Population by Age Group — April 2010
<5years
1 5-17 years
1 18-64 years
1 65 years +
1 Total
o a ' isable
Populati
1,540
7,708
22,740
9,628
41,616
ercent
0 0.0%
247 3.2% 1
978 4.3% 1
2,108 21.9%
3,333 8.0%
Note Total population per Census is 41,643 and there are 27
institutionalized persons residing in Rancho Palos Verdes
Sources 2010 Census DP -1 Profile of General Population and Housing
Characteristics 2010 Demographic Profile Data
2010 Census Summary File 1, Table QT -P13 Group Quarters Population
by Sex, Age, and Type of Group Quarters 2010 (institutionalized
population by age group)
American FactFinder, U S Census Bureau, 2009-2011 American
Community Survey 3 -Year Estimates, Table S1810, Disability
Characteristics
Table construction by Castaneda & Associates
Disabled householders could benefit from programs that provide assistance to retrofit their
homes. Low income disabled householders could benefit from rental assistance programs.
c. Persons with Developmental Disabilities
According to Section 4512 of the Welfare and Institutions Code:
A "developmental disability" means a disability that originates before an individual attains
age 18 years, continues, or can be expected to continue, indefinitely, and constitutes a
substantial disability for that individual which includes mental retardation, cerebral palsy,
epilepsy, and autism. This term shall also include disabling conditions found to be
closely related to mental retardation or to require treatment similar to that required for
individuals with mental retardation, but shall not include other handicapping conditions
that are solely physical in nature.
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Exhibit A
Page 60 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Many developmentally disabled persons, according to HCD, can live and work independently
within a conventional housing environment. More severely disabled individuals require a group
living environment where supervision is provided. The most severely affected individuals may
require an institutional environment where medical attention and physical therapy are provided.
Because developmental disabilities exist before adulthood, the first issue in supportive housing
for the developmentally disabled is the transition from the person's living situation as a child to
an appropriate level of independence as an adult.
The State Department of Developmental Services (DDS) currently provides community based
services to approximately 243,000 persons with developmental disabilities and their families
through a statewide system of 21 regional centers, four developmental centers, and two
community-based facilities. The Harbor Regional Center (HRC) — located in Torrance - is one of
21 regional centers in the State of California that provides point of entry to services for people
with developmental disabilities. The center is a private, non-profit community agency that
contracts with local businesses to offer a wide range of services to individuals with
developmental disabilities and their families. The City is located with the HRC service area.
About 0.59 percent of California's population is served by the DDS. This percentage applied to
Rancho Palos Verdes' population yields an estimate of 247 residents who could be served by
the HRC. Based on HRC's clients by diagnosis, the most prevalent condition among the City's
247 residents would be mental retardation/intellectual disability. The other most prevalent
diagnosis — in rank order - would be autism, epilepsy, cerebral palsy, and other. However,
individuals may have more than one diagnosis.
According to HCD, there are a number of housing types appropriate for people living with a
development disability: rent subsidized homes, licensed and unlicensed single-family homes,
inclusionary housing, Section 8 vouchers, special programs for home purchase, HUD housing,
and SB 962 homes. The design of housing -accessibility modifications, the proximity to services
and transit, and the availability of group living opportunities represent some of the types of
considerations that are important in serving this need group.
The City's General Fund provides financial support to the REACH Program for Developmentally
Disabled Persons. This project assists physically and developmentally severely disabled adults
to be self-confident and improve their communication skills through a social interaction program
with others in a relaxed learning atmosphere.
d. Large Families
HCD defines large families as consisting of five or more persons. Lower income, large families
need more space, rooms and/or bedrooms at affordable costs. Affordability is key need of large
families/households.
Table A-11 shows the number of large family households by household size and tenure.
According to the 2010 Census, there are 1,384 large family households — 1,087 owners and 297
renters.
Table A-12 shows the number of cost burdened large family households by tenure and income
group. The HUD CHAS data estimates that 149 large family households are cost burdened —
109 owners and 40 renters.
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Resolution No 2014-05
Exhibit A
Page 61 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Table A-11
City of Rancho Palos Verdes
Large Families by Tenure - 2010
!1Aial111111=1+"��JiIkJ
110 h1z4 Ili
r+lzi I 111.z4 LW,
V
Extremely Low (0-30%)
4
5 Persons
782
71.9%
211
71.0%
993
71.8%
6 Persons
214
19.7%
62
20.9%
276
19.9%
7 Persons+
91
8.4%
24
8.1%
115
8.3%
Total
1,087
100.0%
297
%
1,384
100.0%
Source Census 2010, Summary File 1, Table QT -H2 Tenure, Household Size and Age of
Householder
Table construction by Castaneda & Associates
Table A-12
City of Rancho Palos Verdes
Cost Burdened Large Families by Tenure and Income Group
Source U S Department of Housing and Urban Development, 2005-
2009 CHAS (Comprehensive Housing Affordability Strategy)
Table construction by Castaneda & Associates
In summary, 10% of the large family owners (109/1,087) and 13.5% of large family renters
(40/297) are cost burdened.
Two- and three-bedroom housing units can serve the needs of large families. Two- and three-
bedroom units comprise the majority (71 %) of the housing units found in the eight apartment
complexes surveyed in December 2012.
e. Farmworkers
HCD guidance indicates that a housing element should estimate the number of permanent and
migrant farmworkers within the community. A farm worker is --
➢ A person who performs manual and/or hand tool labor to plant, cultivate, harvest,
pack and/or load field crops and other plant life.
➢ A person who attends to live farm, ranch or aquacultural animals including those
produced for animal products."
[Source: State of California, Employment Development Department, Labor Market
Information Division Occupational Definition]
Because of their predominantly low incomes, housing affordability is an acute need for
farmworkers.
A-17
r l:_I
Ir r l
V
Extremely Low (0-30%)
4
15
19
Very Low (31-50%)
10
0
10
Low (51-80%)
95
25
120
Total
109
40
149
Source U S Department of Housing and Urban Development, 2005-
2009 CHAS (Comprehensive Housing Affordability Strategy)
Table construction by Castaneda & Associates
In summary, 10% of the large family owners (109/1,087) and 13.5% of large family renters
(40/297) are cost burdened.
Two- and three-bedroom housing units can serve the needs of large families. Two- and three-
bedroom units comprise the majority (71 %) of the housing units found in the eight apartment
complexes surveyed in December 2012.
e. Farmworkers
HCD guidance indicates that a housing element should estimate the number of permanent and
migrant farmworkers within the community. A farm worker is --
➢ A person who performs manual and/or hand tool labor to plant, cultivate, harvest,
pack and/or load field crops and other plant life.
➢ A person who attends to live farm, ranch or aquacultural animals including those
produced for animal products."
[Source: State of California, Employment Development Department, Labor Market
Information Division Occupational Definition]
Because of their predominantly low incomes, housing affordability is an acute need for
farmworkers.
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Exhibit A
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APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
The City has no land devoted to the production of field crops and/or other plant life. Likewise,
there is no land used for animals. As a result, there are no farmworker jobs located in Rancho
Palos Verdes. There may be persons residing or "housed" in the City who are farmworkers at
locations outside the municipal boundaries. According to the 2007-2011 American Community
Survey nine residents were employed in the agriculture, forestry, fishing, hunting and mining
industry all in management occupations. In 2000, 37 residents were employed in that industry.
The housed "farmworkers" who may reside in the City would live in a household and occupy a
housing unit. As such, they would be among the existing households counted as part of the
CHAS housing needs, and estimates of existing and projected housing needs produced by
SCAG. Consequently, the resident low-income "farmworker" households — if any -- would be
included among all the households. That is, the resident farmworker housing needs would be
counted as part of the lower income households experiencing problems of overpaying,
overcrowding, and living in substandard housing.
f. Female Householders
Table A-13 shows that slightly more 3,300 female householders live in the City, which
represents about 20% of all householders. About 1,200 female householders live with a family
and almost 1,900 live alone. About 39% of all female householders are 65 years of age or older
and live alone.
Table A-13
City of Rancho Palos Verdes
Female Householders by Tenure — 2010
Family, No Husband
Living with others
Living Alone
<65 Years
65 Years+
Subtotal Living Alone
Total
Percent
1
841 377 1,218 36.6%
165 75 240 7.2%
383 174 557 16.8%
1,051 259 1,310 39.4%
1,434 433 1,867 56.2%
2,440 I 885
73.4% 26.6%
3,325 1 100.0%
Source 2010 Census Summary File 1 (SF 1), Table QT -H3 Household
Population and Household Type by Tenure 2010
Table construction by Castaneda & Associates
Some important housing needs of female householders include:
Y Affordable housing
> Housing developments that provide supportive services
Y Assistance in locating housing or in securing shared housing
> Access to housing which accommodates children
Y Access to housing which is designed for security and convenience
> Access to housing near parks and open space to serve the needs of female
householders with children.
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APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Potential housing needs include rental assistance and assistance with home maintenance and
repairs for owner female householders living alone.
g. Families and Persons in Need of Emergency Shelter
According to HUD, a person is considered homeless only when he/she resides in one of the
places described below at the time of the count.
An unsheltered homeless person resides in a place not meant for human habitation,
such as cars, parks, sidewalks, abandoned buildings, or on the street.
A sheltered homeless person resides in an emergency shelter or transitional housing
for homeless persons who originally came from the streets or emergency shelters.
City staff and the County Sheriff's Department occasionally see homeless persons as they drive
through the City. An average of twelve homeless persons are seen every year. There are
neither encampments nor homeless sleeping in the City parks or cars. Consequently, there are
no recurring long-term homeless persons in the City.
Emergency shelters are a permitted use in the Commercial General (CG) district. When
combined, the CG district totals 36.53 acres in size, all of which are currently developed with
no vacant properties. Emergency shelters are defined as follows:
Housing with minimal supportive services for homeless persons that is limited to
occupancy of six months or less by a homeless person. No individual or household may
be denied emergency shelter because of an inability to pay.
6. PROJECTED HOUSING NEEDS
a. Population Trends and Projections
Over the past 32 years, the City's population grew by 5,320 persons. The largest population
gains happened in the 10 years between 1980 and 1990. Table A-14 shows the population
trends during the past three decades.
The population growth projections indicate modest gains. The SCAG 2012 RTP Forecast shows
an increase of 100 persons and 100 households between 2008 and 2020 (12 years).
b. Employment Trends and Projections
Employment generates income, which leads to effective housing demand and housing choice.
The labor force and employment characteristics in 2000 and 2010 are described in Table A-15.
During the 10 -year span, the labor force increased by 159 residents and employed workers
declined by 587 workers. Consequently, the jobless rate grew from 2.6% to 6.5%.
Unemployment weakens housing choice. The SCAG 2012 RTP Forecast shows an increase of
400 jobs between 2008 and 2020.
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Exhibit A
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APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Table A-14
City of Rancho Palos Verdes
Population Growth Trends - 1980 to 2013
Incremental Innen a o Cumulative Cumulative
Ltpulation Increases Increase Increase % Increase
1980 36.577
11990
1 2000
1 2010
1 2013
41,667
41,145
41,643
42,114
5,090
-522
498
471
5,090
4,568
5,066
5,537
13.9%
12.5%
13.8%
15.1%
Source U S Census of Population and Housing for years 1980, 1990, 2000 and 2010
State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties,
and the State, 2011 and 2012, with 2010 Benchmark Sacramento, California, May 2012
Table construction by Castaneda & Associates
Table A-15
City of Rancho Palos Verdes
Civilian Labor Force and Employment Characteristics
For Population 16 Years and Over: 2000 and 2010
Em lo ment Status
Population 16 Years + 32,925 33,279
1 In the Labor Force 18,890 19,049
Employed 18,399 17,812
1 Unemployed 491 1,237
1 Unemployment Rate 2.6% 6.5%
Source 2000 Census, Table DP -3 Profile of Selected Economic
Characteristics 2000, Employment Status Population 16 Years
and Over
2009-2011 American Community Survey 3 -Year Estimates,
Table DP -3 Selected Economic Characteristics, Employment
Status Population 16 Years and Over
Table construction by Castaneda & Associates
c. Share of Regional Housing Needs
1. Citywide Share
Pursuant to State law, SCAG has allocated to each city and county in the region it share of the
regional housing need. The regional share includes new housing needed to -
Y Accommodate household growth
Y Replace units lost from the inventory due to demolitions, fires and other causes
> Provide a healthy vacancy rate
The City's share of the regional housing need for the period from January 1, 2014 to October 1,
2021 is 31 housing units. Table A-16 shows number of housing units needed for five income
groups.
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APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Table A-16
City of Rancho Palos Verdes
Share of Regional Housing Needs
January 1, 2014 — October 1, 2021
Extremely Low 4 12.9%
Very Low 4 12.9%
Low 5 16.1%
Moderate 5 16.1% 1
1 Above Moderate 13 42.0% 1
1 Total 31 100.0% 1
Source Southern California Association of Governments, 5th
Cycle Housing Needs Assessment Final Allocation Plan, 1/1/2014
— 10/1/2021
2. Extremely Low Income Housing Need
Four housing units are needed for the extremely low income households. Given their extremely
low incomes, the most suitable housing option would be rent restricted apartments. The ELI
households would not have the means to afford market rate housing and very deep subsidies
would be required in owner -type housing units.
C. SITES INVENTORY ANALYSIS
1. INTRODUCTION
Government Code Section 65583(a)(3) states that a housing element must include:
An inventory of land suitable for residential development, including vacant sites and sites
having potential for redevelopment and an analysis of the relationship of zoning and
public facilities and services to these sites.
Government Code Section 65583.2(a) states that the inventory of land suitable for residential
development —
...shall be used to identify sites that can be developed for housing within the planning
period and that are sufficient to provide for the jurisdiction's share of the regional
housing need for all income levels...."
HCD guidance indicates:
The purpose of the land inventory is to identify specific sites suitable for residential
development in order to compare the locality's new construction need by affordability
category with its residential development (total supply) capacity.
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APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
2. SITES TO ACCOMMODATE THE CITY'S SHARE OF THE REGIONAL HOUSING
NEED
Government Code Section 65583.2(c) states:
"...a city or county shall determine whether each site in the inventory can accommodate
some portion of its share of the regional housing need by income level during the
planning period."
a. Sites to Accommodate the Above Moderate Income Housing Need
Table A-17 shows that the above moderate income housing need can be accommodated by
116 housing units on four sites.
Table A-17
City of Rancho Palos Verdes
Sites Inventory and Analysis for Above Moderate Income Housing Units — February 2013
Project Geo ra hic Siz
g p
Name Identifie M(Ac/S
Density Project
(DUs/Ac, onin Status
Crestridge
Senior
Housing
Project
5601
Crestridge
Road
APN 7589-
013-009
9.76 acres
57
(60 total)
6.15
Senior
Housing
Vacant
Final EIR
prepared
Highridge 28220 1.25 acres 26 22.4 RM —22 Vacant
Condominium Highridge (28 total) Approved
Project Road.
Trump Final Tract 108.8 28 Low RS-1/RPD Vacant
Project Map 50667 acres Approved
Nantasket APN 1.42 4 Low RS -3 Vacant
Residential 7573-014- Approved
Project 013
b. Available Sites to Accommodate Moderate Income Housing Need
The moderate income housing need is five housing units. Second units will accommodate the
moderate income housing need. During the five-year between 2008 and 2013, four second units
have been built and two are approved but have not been constructed. The annual average is
1.2 second units. Based on this annual average, it is projected that nine to 10 second units will
be constructed during the eight-year planning period (October 2013 -October 2021).
Table A-18 shows the square footage of each of the six second units. The average size of the
second units is 743 square feet. Table A-19 shows the average per square foot rent of the one -
bedroom apartments that were surveyed in December 2012.
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APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Table A-18
City of Rancho Palos Verdes
Size (SF) of Second Unit Projects
6968 Alta Vista
108 Rockinghorse
5431 Meadowdale
4400 Miraleste
5 Cayuse
5317 Rolling Ridge
Average
SFR Detached 825
SFR Attached 582
SFR Attached 373
SFR Attached 500
SFR Attached 1,073
SGR Detached 1,107
743
Table A-19
City of Rancho Palos Verdes
Monthly Rents and Rent per Square Foot of 1 -Bedroom Apartment Units
Palos Verdes Terrace
Highridge
Knollbrook Falls
Palos Verdes Victoria
1 The Villas at RPV
1 Vista Catalina
$1,495-$1,695
$1,75042,200
$1,425
$1,49541,700
$1,685-$1,850
$1,500-$1,900
$2,025-$2,515
900-1100
900-1050
800-900
900-1225
900-1225
775
841-971
$1.66-$1.54
$1.94-$2.10
$1.5841.78
$1.66-$1.40
$1.8741.51
$1.94-$2.45
$2.41-$2.59
Second unit development is within the means of moderate income households as follows:
> Average rent is $1.87 to $1.91 per SF
Y Median average rent is $1.89 per SF
> 743 SFX$1.89 per SF= $1,404
Y Monthly income @ housing expense ratio of 30% = $4,681
Y Annual income = $56,172 [$4,681 x 12)
> 2013 moderate income ceiling for a 2 -person household = $62,200
The apartment market survey demonstrates that as the size of the apartment units increase, the
average per square foot rent decreases. An apartment unit with 1,100 square feet currently has
a market rent of $1.54 per SF. The larger second units would be affordable to moderate income
households as follows:
> Average rent is $1.54 per SF
Y Largest second unit is 1,107 SF
> 1,107SFx$1.54SF= $1,705
Y Monthly income @ housing expense ratio of 30% = $5,683
> Annual income = $68,196 [$5,683 X 12]
Y 2013 moderate income ceiling for a 3 -person household = $70,000
> 2013 moderate income ceiling for a 4 -person household = $77,500
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APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Apartment units with 1,100 square feet were comprised of 2 -bedroom units — Knollbrook Falls,
Peninsula Apartments, and The Villas at Rancho Palos Verdes. Three- or four -person
households can be accommodated in a 2 -bedroom unit.
c. Available Sites to Accommodate Lower Income Housing Need
Table A-20 shows two sites that can accommodate five of the 13 lower income housing units.
These include on-site inclusionary housing units of the Crestridge Senior Housing Project and
the Highridge Condominium Project.
Table A-20
City of Rancho Palos Verdes
Sites Inventory and Analysis for Lower Income Housing Units — February 2013
Project 111Geographic Sizalr I Housing
Name J. Identifier (Ac/SF.) Units
'ensity II Project
(DUs/Ac.) Zoning Status
Crestridge
Senior
Housing
Project
5601
Crestridge
Road
APN 7589-
013-009
9.76 acres 3
(60 total)
Highridge 28220 1.25 acres 2
Condominium Highridge
Project Road.
(28 total)
6.15
Senior
Housing
Vacant
22.4 RM —22 Vacant
Approved
The City will implement the Western Avenue Vision Plan/Adequate Sites Program to address
the shortfall of sites to accommodate eight lower income housing units.
3. ENVIRONMENTAL CONDITIONS
Rancho Palos Verdes has special geologic conditions, because it is situated on a unique and
complicated geologic structure known as the Palos Verdes Peninsula. The Peninsula is a
rugged area that is underlain chiefly by folded sedimentary rocks. Weak layers exist within these
bedded rocks, and many ground failures (landslides) have taken place on the Peninsula over
geologic time. These failures range from the currently active Portuguese Bend Landslide to very
old landslides that have horizontal depths of several thousands of feet. In the interest of public
safety, proposals to develop residential units over these landslides must be critically evaluated
on a site -by -site basis. Besides landslides, the frequency and location of steep slopes have
traditionally constrained development on the Peninsula. Within Rancho Palos Verdes,
approximately 40 to 50% of all land has slopes equal to or greater than 25%.
Because of the complex nature of the City's geology and the existing and potential concerns
about slope stability, development in Rancho Palos Verdes is closely managed. Of special
interest to the City is the coastline. When exposed to wave action and surface runoff, sea cliff
retreat occurs on an order of magnitude of six inches per year. In fact, the present topography of
the coastal region of the City is reflective of this interaction between geomorphic processes and
geologic materials underlying the landscape.
The sea cliffs are the result of continuous erosion of the shoreline by wave action, and the
coves and promontories of the shoreline are indicative of the presence of different geologic
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APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
materials having varying degrees of resistance to this erosion. The absence of a bold sea cliff
along sections of the southern shoreline is a condition attributable to recent geological episodes
of landsliding, and the hummock ground surface of the adjacent landward areas indicates that
several of these landslides encroached either well into, or across the coastal region. The deep,
steep walled canyons crossing the coastal region have been cut by the intermittent flow of water
that drains from higher parts of the Palos Verdes Peninsulas.
Early development in the City (prior to incorporation), while consistent with recognized
development standards of the time, did not provide the safety standards expressed through
today's uniform building codes. Later development, occurring in the 1960's and 1970's, was
generally limited to those areas of acknowledged geologic stability and removed from canyons
and coastal bluff tops.
Today, the City has found that redevelopment and improvement of these older portions has
generally resulted in the need for new and in-depth geotechnical analysis and alternative
foundation systems to meet the current and more comprehensive, safety standards of the
Uniform Building Code. Intensification of existing residential densities in these areas has proven
inappropriate, as geologic conditions have precluded such intensification.
Additionally, the geomorphic processes responsible for the existing topography of the coastal
zone are still active, and they will continue to modify the landscape in the future. Clearly, land -
use planning in the coastal region of Rancho Palos Verdes must take into account the likelihood
of occurrence and the severity of potential geologic hazards.
The physical conditions existing in Rancho Palos Verdes present very real limitations to the
development of residential land use. Nonetheless, the City has identified suitable residential
sites to meet the construction need that was allocated by SCAG in the RH NA for the 2014-2021
time period (31 total housing units).
4. PUBLIC FACILITIES AND SERVICES
Rancho Palos Verdes is a part of the South Bay Region. In mid -year 2003, the South Bay Cities
Council of Governments completed an assessment of the South Bay cities infrastructure. [South
Bay Cities Infrastructure and Services Capacity Assessment, Volumes One and Two, June 30,
2003]
That infrastructure assessment found that the existing infrastructure capacity is more than
sufficient to distribute the South Bay's projected water demands. In terms of supply, the
Metropolitan Water District (Southern California's wholesale water agency) forecasts that it will
be able to meet the imported water needs for the sub region through 2020. However, the District
indicated that all of Southern California might be affected by limitations on imported water
supply in the coming years. This may result in higher water prices and a heightened emphasis
on developing local supplies, increasing use of recycled water, and conservation.
Three central wastewater treatment plants serve the South Bay, each under the control of a
regional sanitation district: the Joint Water Pollution Control Plant, the Hyperion Treatment
Plant, and the Terminal Island Plant. South Bay wastewater generally receives primary and
secondary treatment and is then discharged into the Pacific Ocean.
Individual cities in the South Bay own and maintain the local sewer systems that transfer
wastewater to sanitary district trunk sewers, which flow to the regional treatment plants. The
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APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
volume of wastewater generated in the South Bay is expected to grow in step with population
growth, or 12% by 2025. Capacity at the wastewater treatment plants is sufficient to handle
expected growth.
Public Works Department staff in most cities reports that local sewer capacity is also adequate
to handle all expected growth in wastewater, although some cities have areas in which selected
components (e.g. sewer mains, pumping stations) are undersized. The most critical issue
affecting South Bay sewer systems in the future is deterioration due to age.
Waste disposal planning for the South Bay is performed by Los Angeles County Department of
Public Works. Their forecasts show that current landfill capacity will be exhausted by 2009. Los
Angeles County, including the South Bay, will be able to accommodate the solid waste needs
associated with forecast growth provided that the County is able to successfully expand in -
county and out -of -county landfill capacity. Efforts by individual South Bay cities to expand waste
diversion programs will be an important component in the sub region's efforts to manage
demand for landfill disposal. Nine individual South Bay cities, and the sub region as a whole,
have not achieved the state mandated goal of 50% diversion.
In Rancho Palos Verdes residential sites are located in areas that are served by all utilities (i.e.
water, sewer, and storm drains) and other public services (i.e. police, fire, and solid waste).
Also, if needed, the existing facilities can be readily upgraded and/or extended onto the sites to
serve housing development.
The Rancho Palos Verdes storm drain system consists of pipes, inlets, outlets and natural
drainage courses. During storms, the system collects and carries storm water runoff to the
ocean and to other drainage systems beyond the City's boundaries. Because the City of
Rancho Palos Verdes is built on hilly terrain with environmentally sensitive habitat, unstable soil,
open space and bluff tops — it's critical that water be directed away from those areas and
instead, flows directly to the ocean. Good storm drains help prevent erosion, flooding, landslides
and reduce pollution in the ocean. The City wants to keep the ocean clean and minimize
property damage and street closures during storms. About 90 storms drains run underneath the
major streets that are used for commuting.
The City established a Water Quality and Flood Protection Program (the "Storm Drain
Program") in early 2005, after completion of a multi-year engineering and financial analysis that
led to the resident Finance Advisory Committee's recommendation to establish a dedicated
revenue source to repair the storm drain system. The Storm Drain Program was formed with a
$2 million transfer into its "restricted funds". During mid- 2005, the City conducted a mail ballot
election, and the property owners that use the storm drain system approved the imposition of a
dedicated annual Storm Drain User Fee that they will pay and will be deposited into the Storm
Drain Program fund to be used only for storm drain repairs.
D. HOUSING MARKET CONSTRAINTS
1. INTRODUCTION
Government Code Section 65583(a)(6) requires —
An analysis of potential and actual nongovernmental constraints upon the maintenance,
improvement, or development of housing for all income levels, including the availability
of financing, the price of land, and the cost of construction.
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According to HCD:
Although nongovernmental constraints are primarily market-driven and generally outside
direct government control, localities can significantly influence and offset the negative
impact of nongovernmental constraints through responsive programs and policies.
Analyzing specific housing cost components including the cost of land, construction
costs, and the availability of financing assists the locality in developing and implementing
housing and land -use programs that respond to existing local or regional conditions.
While the cost of new housing is influenced by factors beyond a locality's control, local
governments can create essential preconditions (favorable zoning and development
standards, fast track permit processing, etc.) that encourage and facilitate development
of a variety of housing types and affordable levels.
The requisite analysis includes:
> Land Costs — Estimate the average cost or the range of costs per acre for single-
family and multifamily zoned developable parcels.
> Construction Costs — Estimate total construction costs which includes materials and
labor.
> Availability of Financing - Consider whether housing financing, including private
financing and government assistance programs, is generally available in the
community. This analysis could indicate whether mortgage deficient areas or
underserved groups exist in the community.
In addition to the above, the market constraints analysis includes the cost of housing in terms of
monthly rental rates and sales prices.
Market constraints impede the private sector's ability to produce housing within the means of
low-income and sometimes also moderate -income households. Affordable housing costs are set
forth by several local, State and Federal programs. The Low Income Housing Tax Credit
Program establishes affordable maximum rents based on:
Y Maximum household income adjusted by household size
> Expected occupancy of the unit, regardless of the number of people who actually live
in the unit
• Tenants at maximum income paying 30% of their income for housing
Table A-21 shows the lower income maximum affordable housing monthly rents by unit type.
Table A-21
Los Angeles County: Lower Income (60% of Median Income)
Affordable Housing Monthly Rents: 2013
Studio
1 One -Bedroom
1 Two -Bedroom
1 Three -Bedroom
1 Four -Bedroom
1.0 person
1.5 persons
3.0 persons
4.5 persons
6.0 persons
$35,860
$38,420
$46,110
$53,280
$59,430
A-27
$896.50
$960.00
$1,152.50
$1,330.00
$1,485.50
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APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
2. LAND COSTS
Land costs are a major component of new housing production costs. The development industry
typically categorizes land into three types, raw land, entitled land and finished lots. The values
attributed to parcels of land increase through these three stages. Raw land is a vacant piece of
land without any entitlements or improvements. Entitled land can range from having the
appropriate zoning to having a recorded subdivision for the land. Again the values can increase
the further a piece of land is in the entitlement process. Finally, land can be categorized as
"finished lots". This is the final stage prior to the actual construction of a home. All grading has
been completed and all infrastructure (streets, curbs, gutters, storm drains, sewers and utilities)
have been installed. In most cases, this also means that all fees (except those associated with
building permits) have also been paid. At this stage, the land is at its highest value.
As of December 2012:
5 sales had closed with the least expensive being $500,000 to $600,000 for one-half
acre lots
There were two pending sales with prices in the range of $250,000 to $600,000
There are 15 lots on the active market with the least expensive having a sales price
of $199,000
The basic conclusion is that land costs alone are beyond the means of lower income
households.
3. CONSTRUCTION COSTS
a. Components of Construction Costs
Average construction costs are difficult to estimate because they can vary due to the following
physical characteristics:
Design type
Construction type
Quality
Shape
Location (mountains vs flatlands)
[Source: California State Board of Equalization, Assessors' Handbook Section 531, Residential
Building Costs, January 2010, page 4]
The International Code Council (ICC) provides Building Valuation Data (BVD) for its members.
The BVD table provides the "average" construction costs per square foot, which can be used in
determining permit fees for a jurisdiction. The ICC states:
...it should be noted that, when using this data, these are "average" costs based on
typical construction methods for each occupancy group and type of construction. The
average costs include foundation work, structural and nonstructural building
components, electrical, plumbing, mechanical and interior finish material.
Table A-22 shows the BVD average per square foot construction costs for three types of
buildings.
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Table A-22
Building Valuation Data (BVD)
Construction Costs per Square Foot for Residential Construction
Group (2012 International Building Code)
1 R-2 Residential, multiple family
1 R-3 Residential, one- and two-family
1 R-4 Residential, care/assisted living facilities
1 Private garage
ype
Classification
$124.24
$122.07
$149.84
$56.48
Source International Code Council, Building Valuation Data (BVD),
August 2012
Based on the above, the following are estimated construction costs for a -
➢ 1,000 SF housing unit in an apartment building $124,240
➢ 1,500 SF single -home on a level lot $183,105
➢ 400 SF garage for single family home $22,592
However, it is important to note that while this BVD table does determine an estimated cost of a
building (i.e., Gross Area x Square Foot Construction Cost), this data is only intended to assist
jurisdictions in determining their permit fees. This data table is not intended to be used as an
estimating guide because the data only reflects average costs and is not representative of
specific construction.
The above costs are too low to be representative of construction costs. For example, the
average cost of a low income housing tax credit unit built in Los Angeles County is $333,715.
(Source: California Tax Credit Allocation Committee, Cost Containment Forums Report, August
23, 2011.)
The preceding analysis is based on average costs and do not account for the unique features of
land in Rancho Palos Verdes. According to the City's Building Official, the "average"
construction costs are very low. In fact, construction costs actually range from $250 to $300 per
square foot. The reasons are that the geology and expansive soils conditions often require that
new construction have deepened footings, grade beams, caissons, removal and recompaction
of soils and other conditions that increase construction costs.
Affordable housing projects need to pay prevailing wages. This requirement typically drives up
construction costs by 15% to 20%.
The cost of construction alone exceeds the cost affordable to lower income households. Several
factors contribute to the cost of construction including dwelling unit size, height (elevator may be
required), terrain, slopes, quality, State laws, and profit motivations
New affordable homes and apartments cannot be constructed without some public funding
sources that subsidize the entire development and reduce the loan amount to that which can be
supported by the affordable rents and ownership costs. The loss of redevelopment funds and
the federal cutbacks of HOME funds have severely crippled efforts to produce affordable
housing in the City.
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4. AVAILABILITY OF FINANCING
a. Financing Availability Based On Interest Rates
For a sustained period of time, market mortgage interest rates have been either very reasonable
or at historic lows. Table A-23 shows interest rates for two points in time. According to a weekly
survey of 20 southland lenders, as of July 3, 2013, the average mortgage interest rates on all
loans have increased during the past six months. For loans up to $417,000, a 30 -year fixed rate
loan is available at an interest rate of 4.43%, which is 1.03% higher than six months ago. For
"jumbo" loans of more than $417,000, the interest rate is 4.61 % for 30 -year term, which is .76%
higher than six months ago.
It should be noted that not all would be homebuyers would qualify for the lowest interest rates
available. The most favorable interest rates are available to loan applicants who have good
FICO credit scores.
(FICO refers to Fair Issac Corporation, a firm that developed the mathematical formulas used to
produce FICO scores. A FICO score is a snapshot of an applicant's credit risk; the higher the
score, the lower the risk to lenders. The FICO score is computed based on: payment history,
amounts owed, length of credit history, new credit, and types of credit in use.)
Table A-23
Average Mortgage Rates
Weekly Survey of 20 Southland Lenders - As of July 3, 2013
Rates for loans up to $417,000
30 -year fixed
15 -year fixed
Rates for loans of $417,00 and up
30 -year fixed
15 -year fixed
4.43%1.29 pt.
3.53%1.29 pt.
4.61%/.18 pt.
3.93%1.20 pt.
3.39%1.40 pt.
2.72%/.36pt.
3.85%/.39 pt.
3.09%1.34 pt.
Note A pt (point) is a term used by the lending industry to refer to the loan origination fee
One point is equal to 1% of the loan amount
Source Compiled by HSH Associates, Financial Publishers
b. Financing Availability Based on HMDA Data
1. Introduction
HCD has advised cities that an understanding of the geographic areas and or groups without
sufficient access to credit will help localities to design programs to address known deficiencies.
The information that helps most to understand the geographic areas served by credit is the
Home Mortgage Disclosure Act or HMDA data.
HMDA requires lenders to disclose the number, amount, and census tract location of mortgage
and home improvement loan applications. The HMDA data encompasses lender activity for
conventional, FHA, home improvement loans and refinancing loans. The data identifies five
types of action taken on a loan application: loan originated, application approved by the lender
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and riot accepted by the applicant, application withdrawn, file closed for incompleteness and
application denied.
It is important to remember that the census tract location in the following tables refers to the
property location on which a loan application was made. However, borrowers who live outside
the City frequently make the loan applications, and the reasons for denial may be due entirely to
the credit worthiness of the borrower, and not the characteristics of a census tract.
Financing had been readily available until early 2007. Because of the large number of southern
California owners defaulting on subprime loans and the number of foreclosed homes, financing
is riot as available as it was prior to these two events. The number of loan applications and
approved loans has dropped as mortgage loan standards have tightened, including the
unavailability of 100% financing, the need for larger down payments and verified income, and a
requirement for a solid credit history including high FICO scores.
2. 2011 Loan Acolications
In calendar year 2011, 479 loan applications were made in the City — 92% for conventional
loans and 8% for FHA insured loans. The loan denial rates were 12.5% for conventional loans
and 7.5% for FHA insured loans. Compared to other communities, the denial rates are quite
low. Denial rates vary within the City as four census tracts have conventional loan denial rates
higher the 12.5% average. Only three applications for FHA insured were denied. Tables A-24
and A-25 shows the denial rates for conventional and FHA loans for each census tract.
Table A-24
City of Rancho Palos Verdes
Conventional Loan Denial Rates by Census Tracts — 2011
ract Ori • inated Acce •ted Denied A • • licatio •
6703.01 49
6704.03 20
6704.05 23
6704.07 25
6704.11 29
6704.13 30
6704.14 25
6706.00 51
6707.01 51
6707.02 51
Total 354
2 11 62 17.7%
2 4 26 15.4%
3 2 28 7.1%
4 3 32 9.4%
1 0 30 0.0%
5 5 40 12.5%
1 6 32 18.8%
4 7 62 11.3%
6 12 69 17.4%
2 5 58 8.6%
30 55 439 12.5%
Source Federal Financial Institutions Examination Council (FFIEC), Home Mortgage
Disclosure Act (NMDA), Loan Application Register System (LARS) 2411
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Table A-25
City of Rancho Palos Verdes
FHA/VA Loan Denial Rates by Census Tracts — 2011
6703.01
6704.03
6704.05
6704.07
6704.11
6704.13
6704.14
6706
6707.01
6707.02
Total
1
0
2
1
0
2
0
7
16
3
32
1
0
1
0
0
0
0
2
1
0
5
0
0
0
1
0
0
0
0
2
0
3
2 0.0%
0 0.0%
3 0.0%
2 50.0%
0 0.0%
2 0.0%
0 0.0%
9 0.0%
19 10.5%
3 0.0%
40 7.5%
Source Federal Financial Institutions Examination Council (FFIEC), Home Mortgage
Disclosure Act (HMDA), Loan Application Register System (LARS) 2411
3. Home Improvement Loan Acolications — 2011
Typically, loan applications for home improvement loans have higher denial rates than home
purchase loans. Severity three home improvement loan applications were made of which 62
were approved and 11 denied. The denial rate was 15%. The City's Home Improvement
Program can assist some of these denied applicants through grants and deferred loans. These
grants and deferred loans would riot increase an applicant's debt -to -income ratio. In addition,
the City can be somewhat more lenient than a private lender insofar as past credit history.
4. Reasons for Loan Denial — 2011
Table A-26 shows that 67 loan applications for conventional, FHA/VA and home improvement
loans were denied in 2011. The four major reasons for loan denials were: Debt -to -income ratio,
about 36%; Credit application incomplete, about 16%; Other about 13%; and Collateral, about
10%.
According to HMDA:
• Debt -to -income ratio refers to "income insufficient for amount of credit requested and
excessive obligations in relation to income"
Y Credit application incomplete refers to loan application being submitted incomplete
> Other refers to length of residence, temporary residence and other reasons
> Collateral refers to "value or type of collateral insufficient." This may mean that the
appraised value was lower than the price agreed to by seller and buyer.
Source Federal Financial Institutions Examination Council, A Guide to HMDA Reporting —
Getting Right, January 1, 2008, Appendix A, Reasons for Denial
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Table A-26
City of Rancho Palos Verdes
Reasons for Loan Denial by Type of Loan — 2011
Debt -to -Income Ratio
Employment History
Credit History
Collateral
Insufficient Cash
Unverifiable Information
Credit Application Incomplete
Mortgage Insurance Denied
Other
Total
22 1 1 24 35.8%
1 1 1 3 4.5%
2 0 4 6 9.0%
6 1 0 7 10.4%
2 0 0 2 3.0%
3 0 2 5 7.5%
10 0 1 11 16.4%
0 0 0 0 0.0%
9 0 0 9 13.4%
55 3 9 67 100.0%
Source Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure Act
(HMDA), Loan Application Register System (LARS) 2011
5. MONTHLY HOUSING RENTS AND SALES PRICES
Although the Housing Element Law and guidelines do not explicitly mention the price of existing
housing, this potential constraint falls within the meaning of "nongovernmental" or market-driven
barriers to affordability. The analysis also helps to show how the housing market impedes the
application of housing programs such as rental assistance and down payment assistance
programs.
a. Apartment Rental Housing Market
An apartment rent survey completed in December 2012 included eight complexes and 1,153
units. The bedroom distribution is as follows:
> Studios 7
• 1 -bedroom 330
> 2 -bedrooms 712
• 3 -bedrooms 104
> Total 1,153
Two-bedroom units comprise 62% of all the apartment units surveyed. Table A-27 lists the
monthly apartment rents.
HUD's Section 8 Housing Choice Program offers rental assistance to extremely low and very
low income families. The Section 8 rent limits (Fair Market Rents) are listed below:
• Efficiency Unit
• 1 bedroom
> 2 bedrooms
• 3 bedrooms
$911
$1,101
$1,421
$1,921
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Table A-27
City of Rancho Palos Verdes
Apartment Rent Survey December 2012
Studio Units
Subtotal
1 -Bedroom Units
Subtotal
2 -Bedroom Units
Subtotal
3 Bedroom Units
1 Subtotal
3
4
7
27
147
28
21
101
6
330
$1,125-$1,175
$1,195
$1,425
$1,495-$1,700
$1,500-$1,900
$1,685 -$1,850
$1,750-$2,200
$2,025-$2,575
48 $1,550
42 $1,575-$1,650
59 $1,650
36 $1,695-$1,895
224 $1,745-$2,122
163 $1,900-$3,500
113 $2,300-$2,600
27 $2,445-$2,995
712
2 $1,995
13 $1,995-$2,025
12 $1,995-$2,050
12 $2,050-$2,500
24 $2,500-$3,300
41 $2,800-$3,600
104
All of the apartment units have monthly rents exceeding the Section 8 Fair Market Rents
(FMRs). In effect, the rental assistance program is extremely difficult to implement in the City.
[Fair Market Rents (FMRs) are primarily used to determine payment standard amounts for the
Section 8 Housing Choice Voucher Program. They establish a ceiling for the maximum rents of
apartment units that can be rented by families receiving Section 8 rental assistance.
[FMRs are gross rent estimates. They include the shelter rent plus the cost of all tenant -paid
utilities, except telephones, cable or satellite television service, and internet service. HUD sets
FMRs to assure that a sufficient supply of rental housing is available to program participants.
To accomplish this objective, FMRs must be both high enough to permit a selection of units and
neighborhoods and low enough to serve as many low-income families as possible. The level at
which FMRs are set is expressed as a percentile point within the rent distribution of standard
quality rental housing units The current definition used is the 40th percentile rent, the dollar
amount below which 40 percent of the standard -quality rental housing units are rented The
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40th percentile rent is drawn from the distribution of rents of all units occupied by recent movers
(renter households who moved to their present residence within the past 15 months). HUD is
required to ensure that FMRs exclude non -market rental housing in their computation.
Therefore, HUD excludes all units falling below a specified rent level determined from public
housing rents in HUD's program databases as likely to be either assisted housing or otherwise
at a below-market rent, and units less than two years old.]
b. Housing Sales Prices
Table A-28 shows the median sales prices and number of sales by type of home and number of
bedrooms. The median sales prices increases as the number of bedrooms increase.
Table A-28
City of Rancho Palos Verdes
Summary of Home Sales: 2012
Sin_jle Family 2 Bedrooms or Less
Single Family 3 Bedrooms
Single Family 4 Bedrooms or More
1 Attached Homes (Condominiums)
12
98
217
93
$770,000
$810,000
$1,080,000
$418,000 1
Source Pacific West Association of Realtors Multiple Listing Service (MLS)
Table A-29 shows the detailed sales price distribution of 420 detached and attached homes that
sold between January 1, 2012 and December 17, 2012 according to the Pacific West
Association of Realtors Multiple Listing Service.
The sales data show that existing homes are out of the financial reach of lower income
households.
The average marketing time for a home in Rancho Palos Verdes was just over three months at
95.2 days on the market. The vast majority of the borrowers obtained conventional financing.
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Table A-29
City of Rancho Palos Verdes
Homes Sales 1/1/2012-12/17/2012
tial Detached Sale t • er Sta
Bedrooms 7�
wi
4 OR Detached Artgeffed
More Attached Active Active
0- $99,999 0 0 0 0 0 0
100,000 - $149,999 0 0 0 0 0 0
150,000 - $199,999 0 0 0 0 0 0
200,000 - $249,999 1 0 0 3 0 1
250,000 - $299,999 0 0 0 6 0 3
300,000 - $324,999 0 0 0 3 0 0
325,000 - $349,999 0 0 0 12 0 0
350,000 - $374,999 0 0 0 8 0 1
375,000 - $399,999 0 0 0 11 0 2
400,000 - $424,999 0 0 0 5 0 1
425,000 - $449,999 1 0 0 3 0 2
450,000 - $474,999 0 0 0 8 0 1
475,000 - $499,999 0 0 0 1 0 1
500,000 - $549,999 0 5 1 9 0 2
550,000 - $599,999 2 2 1 5 1 0
600,000 - $649,999 1 4 4 3 1 3
650,000 - $699,999 0 12 8 6 2 1
700,000 - $749,999 0 7 9 1 4 2
750,000 - $799,999 2 15 11 4 5 0
800,000 - $999,999 1 36 56 4 20 0
1,000,000 - $1,999,999 4 17 107 1 37 5
2,000,000 and over 0 0 20 0 16 4
[Totals 12 98 217 93 86 29
Average Price 819.3 329.5 1267.8 470 1836.1 931.5
(In Thousands $)
Median Price 770 810 1080 418 1290 699
(In Thousands $)
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APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
E. GOVERNMENTAL CONSTRAINTS
The Housing Element must include -
"An analysis of potential and actual governmental constraints upon the maintenance,
improvement, or development of housing for all income levels...."
The required analysis includes seven governmental factors:
Land use controls
Building codes and their enforcement
Site improvements
Fees and exactions required of developers
Local processing and permit procedures
Constraints on housing for persons with disabilities
Constraints on meeting regional share housing needs
The purpose of the analysis is to find out if a standard or practice "...constitute(s) a barrier to the
maintenance, improvement or development of housing."
1. ACTIONS TAKEN TO REMOVE CONSTRAINTS IDENTIFIED BY THE 2008-2014
HOUSING ELEMENT
The 2008-2014 Housing Element identified governmental constraints that needed to be
removed. Consequently, the adopted element included action programs to amend the
Development Code with regard to the following:
Emergency Shelters
Transitional Housing
Supportive Housing
Single Room Occupancy Housing
Reasonable Accommodation Procedure
Density Bonus Ordinance
a. Emergency Shelters
Section 17.96.625 of the Development Code added an emergency shelter definition:
Housing with minimal supportive services for homeless persons that is limited to
occupancy of six months or less by a homeless person. No individual or household may
be denied emergency shelter because of an inability to pay.
Section 17.20.020 of the Development Code permits by right emergency shelters in the
Commercial General (CG) District.
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b. Transitional Housing
Section 17.96.2115 of the Development Code added the following transitional housing
definition:
Rental housing that in which residents stay longer than overnight, but not more than six
months, and is exclusively designated and targeted for individuals and households at
immediate risk of becoming homeless or transitioning from homelessness to permanent
housing.
Transitional housing is a permitted use in the single-family and multi -family residential zones.
c. Supportive Housing
Section 17.96.2095 of the Development Code added the following supportive housing definition:
A facility that provides housing with no limit on length of stay, that is occupied by the
target population, and that is linked to onsite or offsite services that assist the supportive
housing resident in retaining the housing, improving his or her health status, and
maximizing his or her ability to live and, when possible, work in the community. For
purposes of this definition, "target population" means persons with low incomes having
one or more disabilities, including mental illness, HIV or AIDS, substance abuse, or other
chronic health conditions, or individuals eligible for services provided under the
Lanterman Developmental Disabilities Services Act (Division 4.5 (commencing with
Section 4500) of the California Welfare and Institutions Code) and may include, among
other populations, adults, emancipated youth, families, families with children, elderly
persons, young adults aging out of the foster care system, individuals exiting from
institutional settings, veterans, and homeless people.
Supportive housing is a permitted use in the single-family and multi -family residential zones.
d. Single Room Occupancy Housing
The Development Code was amended to make provisions for single room occupancy (SRO)
housing. A section was added to the Development Code to provide for SRO housing, as follows:
This section provides criteria for the development, operation and regulation of single -
room occupancy facilities. These criteria ensure that single -room occupancy facilities are
developed and operated on adequate sites, at proper and desirable locations with
respect to development patterns, adjacent land uses, and the goals and objectives of the
general plan and any applicable specific plans.
Development standards were established for SRO housing. SROs are permitted through a CUP
in the Commercial General (CG) zone district.
e. Reasonable Accommodation Procedure
The Development Code was amended to establish a reasonable accommodation procedure.
Section 17.67.010 of the Development Code states:
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Pursuant to the federal Fair Housing Amendments Act of 1988 and the California Fair
Employment and Housing Act, this chapter establishes formal procedures allowing
individuals with disabilities and their representatives to request reasonable
accommodations in the application of zoning laws and other land use regulations,
policies and procedures when necessary to eliminate barriers to housing opportunities.
A complete description of the procedure is found on pages A-51 and A-52.
f. Density Bonus Ordinance
Section 17.11.060 of the Development Code was amended on October 6, 2009 to be consistent
with SB 1818 - Government Code Sections 65915-65918. The amendments addressed the
percentage of affordable units required by income group to be eligible for the 20% bonus; sliding
scale increases up to the maximum density bonus of 35%; concessions and incentives; parking
standards; continued affordability; and other requirements of Sections 65915-65918.
g. Licensed Residential Care Housing
Licensed group homes serving six or fewer persons are permitted use in single-family and multi-
family zones. Section 17.02.020 M of the Development Code states that such zones must
permit "Any other use which specifically is required to be permitted in a single family residential
district by state or federal law."
h. Employee Housing
Section 3 — Housing Program — includes an action program to enable the Development Code to
comply with the Government Code requirements regarding employee housing. Employee housing is
privately owned housing that is provided by an employer in connection with any work, whether or not
rent is involved.
2. DESCRIPTION OF FACTORS FOUND NOT TO BE GOVERNMENTAL CONSTRAINTS
a. Land Use Controls
1. Zoning
Rancho Palos Verdes has six single-family residential designations and five multi -family
residential designations. Tables A-30 and A-31 describe the development standards for the
following:
Lot Sizes
Lot Dimensions
Setbacks
Maximum Lot Coverage
Maximum Height
Parking Requirements
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APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
DIST ICT
Table A30
S In gle-F am Ily Residential Developm ent Standards
LO7
DIMENSIONS'
AII+A WIITIH I11.11f MUNI
MINIMUM SETBACKS'.
FOR CPPYCREa7ED LATS
INIH111111 \rlt+NI
NUL MTh
7T
1IIN
NYA• Sr.Ya AMI •,,, 'ill SITS
11
Rat I Ex 200 150 20 25
RS -2 10000 sr 90 10 20 20
RS3 IL000tr 80 110 20 20
N4.4 1..010 .1 15 U11 111 111
5000 d M IrO ?0 ?0
IINr
SIDE
111
10 20
10 20
10 20
111 ?11
10 NI
MINIMUM SL 1SW-tea M4SWAIM ea7C1611361
Tart LOTS CREATED PRIOR TO LOT I00Ifi'A'
INCORPORATION, AN.OEYATION CCAIE A0E
tU(!IWI INr4NEIN S !RIFT NFAN
SIDE SIDE
711 ?II
20 20
20 20
15 20
14 Al
11 M
5
5
5
5
5
111 1• .a4 m.
10 IS 2S% 16
10 1! 401. 16
10 1! 45% 16
III 1• 411. IA
10 It 12% 16
PARKING
REONREMEIC'
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arbsc4.
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Table A31
Multi pie-Fam dy Resi dentia! Developm ent Standards
MINR.NM6 IAT
SIZE AM DLMENSION
LM4N
Irn'AROr 9IZEfsi) Wmill OQlll
1/110,0
___
RM.4 nod 117
PIGS 5400 104000 45 110'
RM -10
RM -t2
R}1.7t
I10CYIT
13'
MINIMUM SEI mats'
INF
SIDE
SnIFITT RGA
XRIL
OMEN
SPACE
ARRA
MAX MARINO $PACES
ILL'1LNle KEIZUIREWUI'
o-1
RDRM
UNITS
2+
RDRM
UNITS
17' i 25' 27 43 30'
2Y 10'
+Nu Op00 75 110 25' 10'
3600 13.0301 7. 110' 25' i 10'
2000 24000 000 117 25' 10'
25' 20' 43 37
Y 20' 43 77
1 WNW
1,raev
2 pope
21' 27 40 30'
1
25' M I 34 16'
(-25% oftolssi
pEr'A1g required)
1 For draaalion,dmif:eim: mat at:Idioms, ate Ch=at 7.4S(14b,SabEcbs, OpenSput Am and BuUding:1:4011-
1
Ic 1L1 For parking Rita &Merron usnt!lnt, eau -Atter 17.0 Any vette.h0114111.5 parsingc nmracnust a ormplaeh•eeknw'lminim opening xuemed furl ate
*attic slRMc •way au4 dh:r effected views. hl NE KM lhltriea, bvaity.to patent of :he IIpitied patinA shall be pm5ided M Fart pmol. in .dd:tie a5 rte
stialyd *dug .'mluita.eas.
Note This table (A-31) is from Municipal Code Section 17 04 040 Consequently, it is not clear
that parking requirements for RM -22 are 1 garage space per 0 to 1 bedroom units, 2 garage
spaces for 2 or more bedroom units and an additional 25% of total parking for guests, which is
what the table should describe As such, prior to July 1, 2014, a code interpretation will be
processed by the City to address the ambiguity
A-40
Resolution No 2014-05
Exhibit A
Page 85 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
The minimum lot sizes for single-family districts range from five acres to 8,000 square feet
(almost 1/5 acre). The minimum lot sizes listed for multi -family developments could be
translated to maximums of 6 to 22 units per acre for RM -6 through RM -22 designations. These
are maximums and actual development potential is usually less due to factors such as the
topography and configuration of the site, easements, and roadways.
While most of the City is zoned and established at single-family residential densities, 16.4% of
the existing housing stock is multi -family units. In fact, the City's housing stock contains 2,654
housing units in multi -family structures.
In addition to the single-family and multi -family zones, the Institutional Zone accommodates
housing since the Zone allows educational institutions, including colleges, to develop student
housing with a CUP. With a CUP, the Institutional Zone also allows for homes for the aged,
which may include age -restricted for -sale or for -rent residential developments provided that
such a development includes a City -approved supportive service program. Mobile homes and
manufactured homes are allowed by -right in the Single -Family Residential Zone.
2. Minimum Dwellina Unit Sizes
The City does not impose minimum housing unit sizes based either on total square footage or
square footage in terms of the number of bedrooms.
3. Desian Criteria
The City has riot established architectural design criteria. With single-family developments, the
City has a Neighborhood Compatibility analysis that has a similar function, whereby the City
would compare the proposed development with the 20 -closest homes in regards to architectural
style, bulk/mass, structure size, open space, etc. This only applies to some single-family
developments that meet a certain threshold.
4. Open Space Requirements
Open space for single family homes is determined through a combination of minimum lot sizes,
minimum setbacks, and maximum lot coverages.
Section 17.04.040.D of the Development Code establishes the open space requirements for
multiple family zones as follows:
As part of the open space area required, all of the units shall have an appurtenant
private patio, deck, balcony, atrium or solarium with a minimum area of one hundred fifty
square feet, except that one bedroom unit shall have a minimum of one hundred thirty
square feet of private open space. Such space shall have a configuration that would
allow a horizontal rectangle of one hundred square feet in area, and no side shall be less
than seven feet in length. Such space shall have at least one electrical outlet. Such
space may count for up to thirty percent of the required open space area.
5. Parkina Requirements
Single-family homes with less than 5,000 square feet of habitable space are required to provide
two (2) enclosed garage spaces. Single-family homes with 5,000 or more square feet of
habitable space are required to provide three (3) enclosed garage spaces.
A-41
Resolution No 2014-05
Exhibit A
Page 86 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Two-bedroom apartment units are required to have 2.25 parking spaces with one space
completely enclosed in a garage. The requirement for a space to be enclosed adds
incrementally to the total production costs of rental housing. The dimension of a one -car garage
is 180 square feet (9 feet by 20 feet). The costs for a one -car garage would represent only a
small percentage of the total costs of new housing, including construction and land costs. This
additional construction cost adds incrementally to the total development costs, but is not
considered a major constraint to affordability.
6. Specific Plans
Two Specific Plans guide residential uses. Specific Plan District I is the coastal specific plan
district. This district comprises all land seaward of Palos Verdes Drive South and Palos Verdes
Drive West. The requirements of this District require Coastal Permits pursuant to Chapter 17.72
for specified land uses.
Specific Plan District IV encompasses all properties, which front on the west side of Western
Avenue from and including 29019 to 29421 Western Avenue. This area is located between
Specific Plan Districts II and III. The Plan encourages quality renovation and development that
builds on the opportunities available to this area and eliminates, or reduces, the constraints this
area faces.
7. Second Unit Development Standards
Second units are permitted in all RS and RM zone districts. The development standards are
described in Section 17.10 of the City's Development Code. The total floor area for a detached
second unit shall riot exceed 1,200 square feet. The total floor area for an attached second unit
shall riot exceed 30% of the floor area of primary residence floor area. The second unit must
include one bathroom and one kitchen and is limited to a maximum of two bedrooms. A garage
space must be provided.
8. Affordable Housina Land Use Controls
To encourage and facilitate the development of affordable housing, the City has adopted the
following land use controls:
Citywide Affordable Housing Requirement: All new residential developments of five or
more dwelling units are required to provide up to 5% of all units affordable to very low
income households or to provide up to 10% of all units affordable to /ow income
households. The affordable units shall be provided on-site or off-site. Upon City Council
approval, in -lieu fees can be paid instead of providing the required affordable housing
units. The City Council established an in -lieu fee of $201,653 plus a 10 percent
administrative fee per affordable unit required.
Housing Impact Fee: In order to mitigate the impact of local employment generation on
the local housing market, new nonresidential development or conversion of existing
development to a more intense use, must make provision for housing affordable to low
and very low households. This requirement applies to applications for the construction,
expansion or intensification of nonresidential land uses, including but not limited to
commercial projects, golf courses, private clubs, and institutional developments.
Developers of non-residential projects must pay a residential impact fee as established
by the City Council. The fee must be adequate to provide one low or very low affordable
A-42
Resolution No 2014-05
Exhibit A
Page 87 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
housing unit for each 10 employees to be generated by the nonresidential development.
The City Council established an in -lieu fee of $1 per square foot of habitable residential
structure.
Projects that provide for very low and low-income housing are exempt from the housing
impact fee.
Density Bonuses for Affordable Housing: The City's density bonus incentives were
updated in 2009 to be consistent with SB 1818. SB 1818, which took effect on January
1, 2005, requires all cities to adopt an ordinance that specifies how compliance with
Section 65915-65918 will be implemented.
9. Moratoria and Prohibitions Aaainst Multifamily Housina DevelorJments
The City has no moratoria or prohibitions against multifamily housing developments. The City
does have a site ("Point View") located within the Landslide Moratorium Area (LMA). About 60
of the site's 95 acres are located within the LMA. This site, however, is zoned for single-family
housing.
(The moratorium boundary prohibits development of new residences with the exception of
certain lots due to active landslide movement.)
10. Growth Controls. Urban Growth Boundaries
The City does riot have a "growth control ordinance" that limits the number of housing units that
be constructed. In addition, the City does not have an "urban growth boundary" extending
beyond the current incorporated area. The City is completely surrounded by the incorporated
cities of Palos Verdes Estates, Rolling Hills, Rolling Hills Estates and Los Angeles and
unincorporated territory.
In summary, the above analysis demonstrates that the City's land use controls, second unit
development standards and affordable housing incentives are not a constraint to the
maintenance, improvement or development of housing. The City's land use controls will
facilitate the development of housing for moderate -income and lower income households
through the continued development of second units and implementation of affordable housing
land use controls.
b. Building Codes and Enforcement
HCD guidance indicates -
The element must describe the building code adoption and enforcement process,
including identification of any local amendments to the Uniform Building Code (UBC) and
how building code enforcement is carried out by the jurisdiction.
The following is a list of the current code versions used by the City:
• 2013 California Green Building Standards Code
> 2013 California Residential Code based on the 2012 International Building Code
• 2013 California Building Code based on the 2012 International Building Code
> 2013 California Plumbing Code based on the 2012Uniform Plumbing Code
A-43
Resolution No 2014-05
Exhibit A
Page 88 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
• 2013 California Mechanical Code based on the 2012Uniform Mechanical Code
> 2013 California Electrical Code based on the 2012National Electrical Code
• 2013 California Title 24 Energy Standards
A city (or county) may make such changes or modifications in the requirements contained in the
California Building Standards Code if the city (or county) makes findings that they are
reasonably necessary because of local climatic, geological, or topographical conditions. Due to
its unique climatic, topographical and geological characteristics, the City has adopted
amendments to the CBC. These amendments include storm damage precautions, fire resistive
roofing, specialized foundation requirements, and geological and geotechnical reports for the
evaluation and elimination of hazards. The specialized foundation requirements apply only to
the active landslide areas of Portuguese Bend Landside and Abalone Cove Landslide.
The City does not consider these local amendments to the CBC to be more restrictive than is
necessary to protect the public health and safety due to the hazards arising from the City's
climate, topography and geology, and are not intended to act as constraints to the housing
supply.
The Building Division's focus is on construction safety through the implementation and
enforcement of construction standards and codes. The building division functions include
checking plans for compliance with all of the applicable codes, issuing building permits, and
conducting inspections of the construction projects as they progress to ensure that the code
standards are met and that the project is constructed in accordance with the approved plans. In
addition, the Building Division coordinates with the City's geological consultants on the review of
geology and soils reports for new construction projects
The California Building Standards Code, as noted, was adopted by reference with only minor
variations. The cost of new housing is not adversely impact by the adopted amendments. The
Building Code and related Codes are considered to be the minimum necessary to protect the
public health, safety and welfare. The Codes, which are based on the State Housing Law and
uniform codes, are adopted by many cities throughout southern California and do not pose a
constraint to residential development.
c. On- and Off -Site Improvements
HCD guidance indicates -:
The element must also describe and analyze the impact of on- and off-site improvement
standards including street widths, curb, gutter, and sidewalk requirements, landscaping,
circulation improvement requirements and any generally applicable level of service
standards or mitigation thresholds.
1. On -Site Improvements
The following on-site improvements are required for new development:
> All utility lines installed for new construction are to be placed underground from an
existing power pole or other off-site point of connection. This requirement can be
waived if the nature of the development makes such installations unreasonable or if
there are existing overhead lines and the underground location is not consistent with
A-44
Resolution No 2014-05
Exhibit A
Page 89 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
a likely future utility "undergrounding" project. Single family additions or additions
increasing gross floor area less than 25% are exempt.
Y Underground cable television is to be installed in all new residential development.
> All mechanical equipment and all outside storage areas are to be screened from
view of public areas and neighboring properties.
> All required 20' front and 10' street -side setback areas are to be landscaped.
Y Two garage spaces (18' width by 20' depth), completely enclosed, are required for
each single-family dwelling unit. Multiple family units are required to have one
completely enclosed garage space per unit (9' width by 20' depth), with an additional
one-third parking space for each unit with less than two bedrooms and one additional
parking space for each unit with two or more bedrooms. Another one-quarter
parking space per unit is to be provided for visitors.
> Residential planned developments are required to have at least two completely
enclosed garage spaces (18' width by 20' depth) for each unit of less than two
bedrooms, and two additional uncovered spaces for each unit with two or more
bedrooms.
> Two-bedroom apartment units are required to have 2.25 parking spaces with one
space completely enclosed in a garage. The requirement for a space to be enclosed
adds incrementally to the total production costs of rental housing.
> A driveway shall be a minimum width of 10' and a paved 25' turning radius shall be
provided between the garage or other parking area and the street of access for
driveways which have an average slope of 10% or more, and which are 50' or more
in length.
2. Off -Site Improvements
Off-site improvements, according to the Development Code, refer to the installation or
construction of facilities outside the boundaries of a private parcel or lot, such as street paving,
curbs and gutters, sidewalks, street trees, street lights, street signs, sewers, utilities and
drainage structures.
The City requires the following off-site improvements:
> Street or alley paving/repaving
> Sidewalks, curbs and gutters
Y Street trees
> Ornamental street lights
Y Sewer and drainage facilities
> Easements and dedications
Because each site is unique due to the nature of adjacent properties, topography, and geology,
it is possible that development of some sites will not need to adhere to each of the above
requirements.
Street (36' minimum width) or alley (20' minimum width) paving or repaving are not to exceed
the area from the centerline to the curb for the length of the lot frontage. Pavement width
standards and specifications are contained in the street standards study. The street standards
specifications are similar to those used by Los Angeles County, but generally are less
expensive designs.
A-45
Resolution No 2014-05
Exhibit A
Page 90 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Sidewalks (36" minimum width), curbs (6" minimum width) and gutters (18" minimum width),
where required, not to exceed the length of the lot frontage, or the total length of the front and
street -side property lines for corner lots. Sidewalks are not usually required, but when
necessary, are usually placed on only one side of the street.
Curb and gutter specifications are of two types: The vertical curb is designed to specifications of
Los Angeles County as detailed in the Los Angeles County Road Department Standards Plans.
The alternative curb is a concrete rolled design, as illustrated in the street standards study
report.
Street trees, 15 -gallon minimum sizes (unless the City specifies a smaller size) at City
determined spacing. Trees are placed in the center of the lot's street frontage (1 tree per lot).
Ornamental street lights (20' minimum height), per the type and spacing designated for the
particular street. Street lights are not usually required, reducing costs while maintaining the
rural character of the City as stated in the General Plan.
The Director of Public Works may require sewer and drainage facilities. Also, sewer
improvements are only for on-site and then to the hook up point. Drainage improvements are
required for all effected downhill areas that would become inadequate with the new
development.
Easements and dedications may be needed. This includes street rights-of-way, utility storm
drain, and/or school pathway easements, and park recreation land dedication and fees.
The scope (i.e., streets, sidewalks, street trees) of the City's off-site improvement requirements
is similar to those of other cities located in Los Angeles County. The standards, in some cases,
are based on those of the County of Los Angeles or comparable to those of other cities in Los
Angeles County.
In summary, the improvement requirements described above have been applied to existing
housing as well as all residential developments under construction and approved for
development. In summary, most cities in Los Angeles County require more stringent
improvements than Rancho Palos Verdes does. It is for these reasons, that the City concludes
that the on-site and off-site improvements required are not a constraint to development, or to the
development of affordable housing.
d. Fees and Exactions
This part describes and quantifies permit, development, impact and other fees imposed on
housing development. Exactions also are discussed.
1. Fees
1) City Fees: Attachment A contains the fee schedule for minor and major applications.
Not every residential development project requires all of these applications. Individually, the
applications are not highly expensive. For example:
Site Plan Review $326
Parcel Map Tentative $5,744
Parcel Map Final $1,244
A-46
Resolution No 2014-05
Exhibit A
Page 91 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Tentative Tract Map $6,243
Final Tract Map $1,455
Initial Study/Negative Declaration $5,594
Conditional Use Permit $7,222
Dedications and fees associated with on-site and off-site improvements are generally required
of new subdivision tracts or parcel maps, not for improvements on existing lots. Such
improvements and fees are based on the actual cost of providing needed infrastructure and
public services. It is difficult, if not impossible, to estimate these costs on a "typical"
development basis. For instance, parkland dedication fees amount to the equivalent of funding
needed to provide .014 acre of parkland per dwelling unit (approximately 4 acres of parkland per
1,000 population). The dollar amount of the fee, however, is dependent on both the value of the
land involved and the number of units proposed for development. Other improvements, such as
roadways or landscaping, are particularly site specific, differing widely from project to project.
Although the fees for "typical" single-family and multi -family developments cannot be computed,
the aggregate total fees would represent a small percentage of the cost of new housing in
Rancho Palos Verdes. Construction costs range from $250 to $300 per square foot. The
reasons for such relatively high construction costs are that geology and expansive soils
conditions often require that new construction have deepened footings, grade beams, caissons,
removal and compaction of soils and other conditions that drive up costs. In addition, land costs
are extremely high in the City. As a result, the City's fees would represent a very small
percentage of the cost of new housing, which includes both land and construction costs.
As stated above, typical fees cannot be computed; however, the actual fees for built projects is
known. The 34 -unit Mirandela senior affordable housing development paid the following City
fees:
Planning fees $17,526 $515 per dwelling unit
Building fees $166.822 $4.907 per dwellina unit
Total $184,348 $5,422 per dwelling unit
A 10,000 square foot single family home development paid the following City fees:
Planning fees $2,255 $0.23 per square foot
Building fees $28.378 $2.84 Der sauare foot
Total $30,633 $3.06 per square foot
2) School Impact (Developer) Fees: The Palos Verdes Peninsula Unified School District
Board of Education has adopted the levying of these fees in accordance with Assembly Bill
2926, Statutes of 1986, State of California. For residential development projects, the fee is
$2.63 per square foot. Most of the City (pre -annexation) pays this amount.
The eastside of the City that was annexed in the 1980s pays an amount set by the Los Angeles
Unified School District. The fees paid by residential construction are $4.18 per square foot of
assessable space. The District allows a reduced fee of $2.63 per square foot for owners and
developers of affordable housing.
A-47
Resolution No 2014-05
Exhibit A
Page 92 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
2. Exactions
By definition, an exaction is a large capital improvement included in a project's approval for
development (e.g., a park dedication, building a school, etc.). The City does not generally
require large-scale capital improvements to be constructed by project applicants. Instead, the
City's fees are intended to finance construction of such facilities.
In summary, the City concludes that the fees established by the City do pose a constraint to
development. Since the City does not carry out exactions, they are not a constraint to local
development.
e. Permit and Processing Procedures
HCD guidance indicates that the element should identify and analyze the types of permits,
processing time required of housing developments, overlay zones, and other applicable
regulations.
1. Residential Sinale-Familv Zones
The Residential Single Family zone districts permit by right single-family residential buildings,
mobile homes and residential care facilities. Uses permitted subject to a conditional use permit
include residential care facilities for seven or more persons.
2. Geoloav Reports for Sinale-Familv Residences
Pursuant to Section 17.02.035 of the Development Code, applications that involve the
construction of a new single-family residence must include a geology report determining that the
project is geologically feasible. The city geologist reviews and approves said report prior to the
application for said project being deemed complete for processing.
3. Multifamily Rental Housina
The Housing Element Law requires cities to facilitate and encourage the development of
multifamily rental housing. More specifically, a housing element should include a review of
existing development standards and permit procedures in the zones that allow multifamily
housing to identify any constraints to rental housing. Uses permitted in the residential Multiple
Family zone districts include single-family and multiple -family residential buildings. All
multifamily housing sites have been constructed or approved for development.
4. Site Plan Review
A site plan review application is required for all new development, which does not otherwise
qualify for review under a review process or application procedure listed in Development Code.
The applicant must submit the site plan review application to the Community Development
Director and pay a fee as established by resolution of the City Council.
The site plan review procedure enables the Director and/or Planning Commission to check
development proposals for conformity with the provisions of Development Code and for the
manner in which they are applied, when no other application is required by the Development
Code.
A-48
Resolution No 2014-05
Exhibit A
Page 93 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
The site plan is reviewed and approved by the Director for conformity with provisions of the
Development Code.
5. Processina Time
In evaluating processing times, it is important to recognize that the developments processed in
the City are both unique and complex. The average processing times of surrounding cities do
not reflect projects of the same size, scale and complexity as those in Rancho Palos Verdes.
Additionally, the City complies with all requirements of the California State Permit Streamlining
Act.
All multi -family zones and housing have been constructed or are approved. New single family
residences, including tear -down rebuilds, that are no taller than 16 -feet in height go through a
Neighborhood Compatibility (NC) process. The review focuses on the proposed size,
architectural style, and setback, and the proposal is reviewed against what is currently in the
immediate neighborhood to ensure that the new structure will be compatible with the immediate
neighborhood. Due to topography and soils conditions in the City, geotechnical reports must be
submitted and approved prior to processing a NC application. The process requires the
property owner to construct a silhouette illustrating the location and outline of the proposed
residence. Further, the process requires that a notice of the application be mailed to all property
owners within a 500 -foot radius of the property. This process usually takes 3 to 6 months to
complete, and the decision making body is the Community Development.
Residences taller than 16 -feet in height also must go through a Height Variation process, which
is processed concurrently with the NC process. However, in addition to the review criteria of the
NC, the review includes an assessment on view impairment to other residences resulting from
the proposed structure, and an analysis on privacy infringement to determine whether the
project will infringe upon the adjacent properties. The requirements for processing are the same
with regards to geotechnical, silhouetting, and notices, but the process usually takes around 6-9
months to complete. The decision making body in these instances is the Planning Commission.
The average processing times will not pose a constraint to the production of housing during the
planning period. The NC and HV requirements are required of single family residences.
6. Overlay Zones
Overlay Control Districts, according to the Zoning Code, provide criteria that further reduce
potential impacts, which could be directly created or indirectly induced by proposed and existing
developments in sensitive areas of the City. These areas have been identified in the General
Plan and other studies to be sensitive areas due to unique characteristics contributing
significantly to the City's form, appearance, natural setting, and historical and cultural heritage.
The Districts include:
Natural Overlay Control District OC -1
Socio -Cultural Overlay Control District OC -2
Urban Appearance Overlay Control District OC -3
Automotive Service Station Control District OC -4
A-49
Resolution No 2014-05
Exhibit A
Page 94 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
The Natural Overlay Control District is established to:
Maintain and enhance land and water areas necessary for the survival of valuable
land and marine -based wildlife and vegetation.
Enhance watershed management, control storm drainage and erosion, and control
the water quality of both urban runoff and natural water bodies within the City.
The Socio -Cultural Overlay Control District is established to:
Preserve, protect and maintain land and water areas, structures and other
improvements which have significant historical, archaeological, or cultural
importance; and
Provide for the designation, protection and maintenance of land and water areas and
improvements, which may be of unique scientific or educational value.
The Urban Appearance Overlay Control District is established to:
Preserve, protect and maintain land and water areas, structures and other
improvements, which are of significant value because of their recreational, aesthetic
and scenic qualities.
Preserve, protect and maintain the City's visual character, views and vistas.
Eight sites are affected by the Automotive Service Station Overlay Control District, which is
established to encourage service stations to remain in the City. Two of the eight sites have
existing service stations and are residentially zoned. Application of the Automotive Overlay
Control District does not hinder the City's capacity to meets its share of the regional housing
need, as the sites have been developed for numerous years.
None of the four Overlay Districts have been designated on the housing sites identified to
accommodate the City's share of the regional housing need (see Technical Appendix D.
Consequently, the Overlay Districts do not constrain or reduce the housing capacity of the sites
that are identified as addressing the City's share of the regional housing need.
In summary, the City's processing and permit procedures do not pose a constraint to the
development of housing. Sites to accommodate a portion of the City's share of the regional
housing need already have been approved for development.
3. EFFORTS TO REMOVE CONSTRAINTS ON HOUSING FOR THE DISABLED
The Housing Element must identify constraints on housing for people with disabilities and efforts
to remove any such constraints. More specifically, the analysis must:
Identify whether the locality has an established reasonable accommodation
procedure
Review zoning laws, policies, and practices for compliance with fair housing laws
Evaluate permits and processing as they affect applications from disabled persons
Review Building Code amendments and practices that might diminish the ability to
accommodate persons with disabilities
A-50
Resolution No 2014-05
Exhibit A
Page 95 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
In summary, the City's rules, policies, and standards are consistent with fair housing laws. The
City's Development Code does not impose constraints on the development of housing for
disabled persons.
a. Reasonable Accommodation Procedure
The City amended the Development Code on April 5, 2011 to add a reasonable accommodation
procedure. Section 17.67.020 of the Development Code states:
A request for a reasonable accommodation may be made by any person with a
disability, their representative, or any developer or provider of housing for an individual
with a disability, when the application of a zoning law or other land use regulation, policy
or practice acts as a barrier to fair housing opportunities.
A request for a reasonable accommodation may include a modification or exception to
the rules, standards and practices for the siting, development and use of housing or
housing -related facilities that would eliminate regulatory barriers and provide a person
with a disability equal opportunity to the housing of their choice.
The adopted reasonable accommodation procedure describes the following:
Procedure for requests for a reasonable accommodation
Reference to applicable fair housing laws
Definition of disability
Timeline for a decision within 60 days
Findings for granting a reasonable accommodation request
Community Development Director determines whether to grant a request
b. Definition of Family
The City's definition of family is:
'Family' means an individual or two or more persons, living together as a single
housekeeping unit in a dwelling unit.
The City's definition of family complies with fair housing laws, as it does not limit the number of
persons that occupy a housing unit, does not make a distinction regarding related or unrelated
persons living together, does not define family in terms of blood, marriage, or adoption, and
emphasizes that a family means a single "housekeeping" unit in a dwelling unit.
The City's definition of a dwelling unit is:
'Dwelling unit' means one or more habitable rooms, which are intended or designed to be
occupied by a family with facilities for living and the cooking and/or preparation of food.
c. Residential Care Facilities for Seven or More Persons
In the single- and multi -family family zones, the City requires a conditional use permit for
residential care facilities involving seven or more persons. State law -- as the summary below
explains -- allows cities to require a conditional use permit for residential care facilities for seven
or more persons.
A-51
Resolution No 2014-05
Exhibit A
Page 96 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Because California law only protects facilities serving six or fewer residents, many cities
and counties restrict the location of facilities housing seven or more clients. They may
do this by requiring use permits, adopting special parking and other standards for these
homes, or prohibiting these large facilities outright in certain zoning districts. While this
practice may raise fair housing issues, no published California decision prohibits the
practice, and analyses of recent State legislation appear to assume that localities can
restrict facilities with seven or more clients. Some cases in other federal circuits have
found that requiring a conditional use permit for large group homes violates the federal
Fair Housing Act. However, the federal Ninth Circuit, whose decisions are binding in
California, found that requiring a conditional use permit for a building atypical in size and
bulk for a single-family residence does not violate the Fair Housing Act. [Emphasis
added]
Source: Barbara Kautz, Goldfarb & Lipman LLP, Select California Laws Relating to
Residential Recovery Facilities and Group Homes, pg. 3, (presented at the Residential
Recovery Facilities Conference, Newport Beach, March 2, 2007)
d. Siting or Separation Requirements for Licensed Residential Care Facilities
The City's Development Code does not establish siting or separation requirements for the
facilities.
Over concentration of certain care homes in a neighborhood is regulated by the State for
licensed facilities. Except for foster homes and elderly care, licenses issued by the Department
of Social Services (CDSS) must be a minimum of 300 feet away from any other licensed home
(as measured from the outside walls of the house — Health and Safety Code Section 1520.5) If a
home is less than the 300 feet, an exemption must be granted by the city, otherwise the license
in denied. This 300 -foot separation restriction does not apply to licenses issued by the State
Department of Alcohol and Drugs for rehabilitation homes.
CDSS must submit any application for a facility covered by the law to the city where the facility
will be located. The city may request that the license be denied based on the over
concentration or an existing facility (or within 1,000 feet of a congregate living health facility)
unless the city approves the application. Even if there is adequate separation between the
facilities, a city or county may ask that the license be denied based on over concentration.
These separation requirements apply only to facilities with the same type of license. For
instance, a community care facility would not violate the separation requirements even if located
next to a drug and alcohol treatment facility.
The DOJ and HUD acknowledge that neighborhoods as well as the disabled may suffer if
licensed residential care facilities are over concentrated. The DOJ and HUD offer the following
guidance:
...if a neighborhood came to be composed largely of group homes, that could adversely
affect individuals with disabilities and would be inconsistent with the objective of
integrating persons with disabilities into the community. Especially in the licensing and
regulatory process, it is appropriate to be concerned about the setting for a group home.
A consideration of over -concentration could be considered in this context. This objective
does not, however, justify requiring separations which have the effect of foreclosing
group homes from locating in entire neighborhoods.
A-52
Resolution No 2014-05
Exhibit A
Page 97 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Source: Joint Statement of the Department of Justice and the Department of Housing
and Urban Development, Group Homes, Local Land Use, and the Fair Housing Act,
August 18, 1999, page 4.
The City has not adopted a spacing and separation standard.
e. Parking Requirements for Persons with Disabilities
The City's parking standards are established for different uses, not in terms of the occupants of
the use. For instance, the City does not have parking standards for single- or multi -family
housing occupied by disabled or elderly persons. A parking space reduction, though, may be
approved pursuant to the City's affordable housing incentives.
The City recognizes that disabled persons who occupy licensed residential care facilities
generate a parking need different from non -disabled persons. For instance, developmentally
disabled persons may not have licenses to drive a car. The "reasonable accommodation
procedure" includes an opportunity for disabled persons (or their representatives) to request a
reduction and/or waiver of parking requirements.
f. Permits and Processing
According to HCD -
Issues to evaluate include the process for requesting retrofit for accessibility, ensuring
compliance with all State laws regulating permit requirement of licensed residential care
facilities with fewer than six persons in single-family zones, and identification of any
conditions or use restrictions for licensed residential care facilities with greater than 6
persons or group homes that will be providing services on-site.
1. Reauestina Retrofit for Accessibility
Non-structural retrofits within buildings like adding grab bars, replacing doorknobs with single -
lever doorknobs, and exchanging toilets do not require building permits, or City approvals.
Structural retrofits like widening doorways or constructing ramps requires a building permit.
These requirements are the same for single- and multi -family housing. Tenants residing in
apartments must first obtain permission from the owner and/or property manager to make the
retrofits.
2. Ensurina Compliance with all State Laws Reaulatina Requirements for Licensed Residential
Care Facilities:
As previously mentioned, the City allows - by right - all licensed residential care facilities
housing six or fewer persons to be located in single -and multi -family residential zones. The City
has several licensed facilities, including Adult Residential Facilities (ARF) and Residential Care
Facilities for the Elderly (RCFE). The City does not impose any requirements on these facilities
other than those required for single-family homes.
A-53
Resolution No 2014-05
Exhibit A
Page 98 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
The California Community Care Licensing Division defines these facilities as follows:
ARFs are facilities of any capacity that provide 24-hour non-medical care for adults ages
18 through 59, who are unable to provide for their own daily needs. Adults may be
physically handicapped, developmentally disabled, and/or mentally disabled.
RCFEs provide care and supervision and assistance with activities of daily living, such
as bathing and grooming. They may also provide incidental medical services under
special care plans. The facilities provide services to persons 60 years of age and over
and persons under 60 with compatible needs. RCFEs may also be known as assisted
living facilities, retirement homes and board and care homes. The facilities can range in
size from six beds or less to over 100 beds. The residents of these facilities require
varying levels of personal care and protective supervision.
3. Conditions or Use Restrictions for Licensed Residential Care Facilities with Greater than 6
persons or Group Homes that will be Providing Services On -Site:
Apart from requiring a conditional use permit, the City has no other conditions or use restrictions
on group homes serving seven or more persons.
g. Building Codes
HCD recommends the analysis include the following:
The year of the Uniform Building Code adoption and any amendments that might
diminish the ability to accommodate persons with disabilities, identification of adopted
universal design elements in the building code, the provision of reasonable
accommodation for persons with disabilities in the enforcement of building codes and the
issuance of building permits.
1. Building Code Adoption and Amendments
The City has adopted the 2010 California Building Code (CBC). Due to its unique climatic,
topographical and geological characteristics, the City has adopted amendments to the CBC.
These amendments include storm damage precautions, fire retardant roofing, specialized
foundation requirements, seismic safety requirements, and geological and geotechnical reports
for the evaluation and elimination of hazards. None of these amendments affect housing for the
disabled.
2. Universal Design Elements
On October 31, 2005, HCD certified and made available the "Model Universal Design Local
Ordinance." HCD indicated that the Ordinance might be adopted voluntarily in substantially the
same form by any city or county pursuant to Section 17959.
Although the City has not adopted a "universal design ordinance" this is not deemed a
constraint on existing or new housing for disabled persons. The City understands that universal
design aims to serve all people of all ages, sizes, and abilities and is applied to all buildings.
For instance, a universal design feature is any component of a house that can be used by
everyone regardless of his or her level of ability or disability. A feature, for instance, such as no
steps at entrances. Or single -lever water controls at all plumbing fixtures and faucets.
A-54
Resolution No 2014-05
Exhibit A
Page 99 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
3. Buildina Code Reasonable Accommodations
The City has adopted a reasonable accommodation procedure. A request for a reasonable
accommodation may include a modification or exception to the rules, standards and practices
for the "development" of housing. The term "development" includes modifications or exceptions
to the Building Code.
In summary, the City's rules, policies, and standards are consistent with fair housing laws. The
City's Development Code does not impose constraints on the development of housing for
disabled persons.
4. CONSTRAINTS ON MEETING SHARE OF REGIONAL HOUSING NEEDS
The housing element law requires the City to identify and remove any governmental constraints
that hinder meeting the community's share of the regional housing need.
The City has sufficient capacity to accommodate its share of the regional housing need, which is
thirty-one housing units. Public services and facilities are adequate and have enough capacity
to meet the needs generated by new housing development.
F. PROGRESS REPORT
HCD suggests that the Progress Report (officially known as review and revision) discuss:
"Appropriateness of goals, objectives and policies" (Section 65588(a)(1)): A description
of how the goals, objectives, policies and programs of the updated element incorporate
what has been learned from the results of the prior element.
"Effectiveness of the element" (Section 65588(a)(2)): A comparison of the actual results
of the earlier element with its goals, objectives, policies and programs. The results
should be quantified where possible (e.g., rehabilitation), but may be qualitative where
necessary (e.g., mitigation of constraints).
"Progress in implementation" (Section 65583(a)(3): An analysis of the significant
differences between what was projected or planned in the earlier element and what was
achieved.
1. APPROPRIATENESS OF GOALS AND POLICIES
Table A-32 (pages A-57 to A-60) discusses the appropriateness of goals and policies pertaining
to the following housing needs:
Construction
Rehabilitation
Conservation
Preservation
Fair Housing
All of the goals and policies remain appropriate and will be carried forward to the 2013-2021
Housing Element with the exception of those dependent on funding from the Redevelopment
Agency, which was dissolved in February 2012.
A-55
Resolution No 2014-05
Exhibit A
Page 100 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
CDBG funding is not likely to be available to support a Housing Improvement Program.
However, funding could become available during the planning period. Consequently, it was
included in the Section 2 — Housing Program.
A-56
Resolution No 2014-05
Exhibit A
Page 101 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Table A-32
City of Rancho Palos Verdes
2008-2014 Housing Element
Evaluation of the Appropriateness of Goals and Policies
Accommodate the housing
needs of all income groups as
quantified by Regional
Housing Needs Assessment
Facilitate the construction of
the maximum feasible number
of housing units for all income
groups
1. Designate sites that provide
for a variety of housing
types.
2. Implement the Land Use
Element and Development
Code to achieve adequate
sites for the moderate- and
above -moderate income
group
3. Continue to pursue
development of an
affordable housing project at
the RDA -owned Crestridge
site.
4. Continue to implement the
Housing Component of the
Redevelopment Agency's
Implementation Plan
5. Prefer that persons, entities
and/or developers that are
obligated to provide
affordable housing units
provide the affordable
housing units on-site as part
of their development project
rather than paying in -lieu
fees.
A-57
This policy is appropriate and
will be included in the 2013-
2021 Housing Element
Update. The variety of
housing sites was enhanced
by Development Code
amendments to provide for
emergency shelters, single -
room occupancy housing,
transitional housing and
supportive housing.
The City has approved
projects to meet the housing
needs of all income groups.
This policy remains
appropriate.
This policy was implemented.
The Redevelopment Agency
has been dissolved.
The Redevelopment Agency
has been dissolved. The
Agency's Housing Plan
provided guidance to the
goals and policies of the
2008-2014 Housing Element.
This policy remains
appropriate; on-site affordable
housing is preferred.
Resolution No 2014-05
Exhibit A
Page 102 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Table A-32 continued
City of Rancho Palos Verdes
2008-2014 Housing Element
Evaluation of the Appropriateness of Goals and Policies
A housing stock free of
substandard structures.
1. Continue to implement the
current Housing Code
Enforcement Program.
2. Continue to implement the
Housing Improvement
Program.
This policy continues to
remain appropriate. The City
continues to manage housing
code enforcement which
maintains the quality of the
existing housing stock.
This policy is appropriate for
FY 2013-2014. However,
funding could be unavailable
for the balance of the planning
period.
Conserve and improve the 1. Provide rental assistance to
existing stock of affordable extremely low-, very low,
housing and low- income households
through programs
administered by the City,
Redevelopment Agency
and/or the County of Los
Angeles Housing Authority
2. Continue to support a
Housing Code Enforcement
Program to help maintain
the physical condition of
housing
3. Continue to support a
Housing Improvement
Program financed by
Community Development
Block Grant Funds.
A-58
This policy is appropriate;
however, due to lack of funds
reference to the City and
Redevelopment Agency will
be eliminated.
This policy continues to
remain appropriate. The
Housing Code Enforcement
Program is responsible for
ensuring that properties meet
City standards.
The CDBG funds allocated to
the City have been reduced
and this program no longer
can be financed. FY 2013-
2014 will be the last year that
the program will be
implemented.
Resolution No 2014-05
Exhibit A
Page 103 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Table A-32 continued
City of Rancho Palos Verdes
2008-2014 Housing Element
Evaluation of the Appropriateness of Goals and Policies
Remove existing
governmental constraints to
the maintenance,
preservation, improvement
and development of housing
Preserve the existing and
future supply of affordable
housing that is financially
assisted by the City, County,
and State or Federal
governments.
1.
Continue to implement
land use regulations that
facilitate meeting
affordable housing needs.
2. Continue the processing
of new housing
developments designed to
address the needs of the
entire range of income
groups.
3. Monitor and protect the
supply of affordable
housing by enforcing
existing regulations and
affordability restrictions.
4. Ensure the long-term
affordability of future
affordable housing
developments.
A-59
This policy is appropriate in
the event opportunities
emerge during the 2013-2021
planning period.
This policy is appropriate
because of the State mandate
and the needs of the City's
lower income households.
This policy remains
appropriate. However, it
should be modified to reflect
that the City is not responsible
for affordable use restrictions
on all the affordable housing
that has been constructed.
This policy is appropriate.
However, the development of
a new affordable housing
development will be
constrained due to limited
sites and funds.
Resolution No 2014-05
Exhibit A
Page 104 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Table A-32 continued
City of Rancho Palos Verdes
2008-2014 Housing Element
Evaluation of the Appropriateness of Goals and Policies
Attain a housing market with
"fair housing choice," meaning
the ability of persons of similar
income levels regardless of
race, color, religion, sex,
national origin, handicap and
familial status to have
available to them the same
housing choices
Continue to promote fair
housing opportunities
through the City's
participation in the
County's Community
Development Block Grant
Program
2. Promote fair housing
through the provision of
information and referral
services to residents who
need help in filing housing
discrimination complaints
A-60
This policy remains
appropriate. The City is
located within the service area
of the Fair Housing
Foundation. The following
services continue to be
made available through the
Fair Housing Foundation: Fair
Housing Education and
Outreach, Discrimination and
Investigation, Random Audits,
Landlord and Tenant
Counseling, Unlawful Detainer
Action, Conciliation, Mediation
and Referrals
This policy is appropriate as
the City continues to refer
residents needing assistance
in filing a housing
discrimination complaint to the
appropriate contact person(s)
through the Fair Housing
Foundation, California
Department of Fair
Employment and Housing,
and HUD
Resolution No 2014-05
Exhibit A
Page 105 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
2. EFFECTIVENESS OF THE ELEMENT
All programs were successfully implemented. However, the Housing Improvement Program has
been suspended due a lack of CDBG funding. All planned Development Code amendments
have been completed. An employee housing code amendment will be processed in 2014. Table
A-33 below and on the next two pages summarizes the effectiveness in implementing the
adopted housing programs.
Table A-33
City of Rancho Palos Verdes
2008-2014 Housing Element Effectiveness
Housi
1
Land Use Element/Specific Plans
84 housing units were constructed between
January 1, 2006 and December 31, 2011.
33 affordable housing units were constructed
during this period.
Development Code Amendment Program A Code Amendment that the City Council
adopted: a) established a reasonable
accommodations procedure for individuals
with disabilities, b) established standards for
single room occupancy facilities, c) permits
emergency shelters in the CG Zone by right,
and d) allows for the development of
transitional and supportive housing.
Western Avenue Specific Plan Update In June 2013, a Draft Western Avenue
Corridor Vision Plan was completed. The Draft
Vision Plan does riot designate areas for
mixed use development.
Section 8 Rental Assistance Program The County Housing Authority reports that
Section 8 Rental Assistance Program assists
two resident households.
The City continues to assist the Housing
Authority staff by conducting a Landlord
Outreach Program, informing the Housing
Authority of the City's status on providing
affordable housing through the existing
housing stock and providing an Apartment
Rental Survey to the Housing Authority.
Crestridge Senior Affordable Housing The City approved the Crestridge Senior
Program - Mirandela Affordable Housing project, also known as
Mirandela, in 2009. A total of 33 lower income
units were approved to accommodate
extremely low, very low and low income
housing units. The project was completed and
occupied in 2010.
A-61
Resolution No 2014-05
Exhibit A
Page 106 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Table A-33 Continued
City of Rancho Palos Verdes
2008-2014 Housing Element Effectiveness
Moderate Income Second Unit Program Staff continues to track and monitor the
number of second dwelling units that are
created in the City.
City continues to distribute and promote the
development of second dwelling units when
accessory structures are proposed.
Between 2006 and 2013, six (6) second
dwelling units have been approved
Conversion of Existing Housing to In 2008, two (2) market -rate housing units
Affordable Housing were purchased with the intent to sell to a
qualified low-income household and a qualified
moderate -income household. In 2010, a
qualified moderate -income household was
identified, and the RDA owned unit was sold in
2011
Pursuant to the provisions of the City's
Inclusionary Housing Ordinance, a developer
was required to purchase a market -rate unit
and convert it to an affordable unit. In 2009,
the unit was sold to a qualified low income
homeowner
Reasonable Accommodation Procedure The City researched Federal and State laws
and policies that require adoption of a
reasonable accommodation procedure, and
evaluated reasonable accommodation
procedures from other California Cities.
Staff drafted a reasonable accommodations
ordinance that was forwarded to the Planning
Commission and City Council. The City
Council adopted a reasonable
accommodations ordinance in 2011.
Licensed Residential Care — Development Section 17.02.020 permits licensed group
Code Revision Program homes in residential zones that allow single
family homes. Reference is made to the fact
that uses required to be permitted by state or
federal law are permitted. Staff has
determined that it is not necessary to set forth
spacing criteria as these are established by
state law.
Density Bonus Ordinance Program The City's Density Bonus Ordinance was
updated in 2009. The City will continue to
monitor legislation and will amend the Density
Bonus Ordinance when required by law.
A-62
Resolution No 2014-05
Exhibit A
Page 107of114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
Table A-33 Continued
City of Rancho Palos Verdes
2008-2014 Housing Element Effectiveness
Housing Code Enforcement Program
Housing Improvement Program
Fair Housing Services Program
Fair Housing Information Program
The City continues to manage the housing
code enforcement on a complaint basis and
continues to strive for voluntary compliance
through the Code Enforcement Division
The City averaged 30 code enforcement cases
per month in 2011
The City continued to manage property
maintenance and illegal construction code
enforcement on a proactive basis
City continues to manage the HIP by providing
assistance to eligible homeowners in the form
of grants or zero interest deferred loans
(Program is administered through the Public
Works Department). Since its inception, the
HIP has provided assistance to 89
households. CDBG funding for this program
was discontinued in December 2012.
City continues to promote fair housing through
its participation with the LA County's
Community Development Block Grant (CDBG)
The following services continue to be made
available through the Long Beach Fair
Housing Foundation: Fair Housing Education
and Outreach, Discrimination and
Investigation, Random Audits, Landlord and
Tenant Counseling, Unlawful Detainer Action,
Conciliation, Mediation and Referrals
City continues to refer residents needing
assistance in filing a housing discrimination
complaint to the appropriate contact person(s)
through the Fair Housing Foundation,
California Department of Fair Employment and
Housing, and HUD
City has also developed a list of contacts at
the key entities
A-63
Resolution No 2014-05
Exhibit A
Page 108 of 114
APPENDIX A — HOUSING NEEDS, SITES, CONSTRAINTS & PROGRESS
G. COASTAL ZONE REQUIREMENTS
Cities located within the boundaries of the Coastal Zone must include the following information
in the Housing Element:
Housing approved for construction within the coastal zone after January 1, 1982.
Affordable housing required to be provided in new housing developments either within
the coastal zone or three miles from it.
Number of dwelling units occupied by low or moderate -income households that have
been converted or demolished.
Number of dwelling units that have been required for replacement of housing converted
or demolished.
Projects located in the coastal specific plan district that result in the demolition or conversion of
three or more dwelling units occupied by low and moderate -income households must be
replaced on a one-for-one basis. The replacement units may be located on the same site,
elsewhere in the coastal specific plan district, or within three miles of the district. Upon City
Council approval, in -lieu fees can be paid instead of providing the required affordable
replacement housing units. New developments in the Coastal Zone must provide affordable
housing. Where it is not feasible to include affordable units within new development, developers
can satisfy the requirement by constructing them at another specific site within the coastal zone
or within the City. No low and moderate income housing units in the coastal zone have been
converted, demolished or replaced since January 1, 1982.
A-64
CITY OFLip RAI`ICHO PALOS VERDES
H0OSESHOOSES
Resolution No 2014-05
Exhibit A
Page 109 of 114
APPENDIX B
ORGANIZATIONS CONSULTED,
DATA SOURCES & DEFINITIONS
Resolution No 2014-05
Exhibit A
Page 110 of 114
APPENDIX B — ORGANIZATIONS CONSULTED, DATA SOURCES & DEFINITIONS
City of Rancho Palos Verdes
2013-2021 Housing Element of the General Plan
Appendix B -Organizations Consulted, Data Sources & Definitions
Table of Contents
A. List of Organizations Consulted B-1
B. Data Sources B-2
C. Definitions B-3
B-1
Resolution No 2014-05
Exhibit A
Page 111 of 114
APPENDIX B — ORGANIZATIONS CONSULTED, DATA SOURCES & DEFINITIONS
A. LIST OF ORGANIZATIONS CONSULTED
California Housing Partnership Corporation
Main Office
369 Pine Street
Suite 300
San Francisco, CA 94104
415-433-6804
. City of Los Angeles
Department of Aging
3580 Wilshire Boulevard
Suite 300
Los Angeles, CA 90010
213 252-4030
. Fair Housing Foundation
3605 Long Beach Boulevard
Suite 302
Long Beach, CA 90807
562-989-1206
. Harbor Regional Center
21231 Hawthorne Boulevard
Torrance, CA 90503
310-540-1711
. Los Angeles County Community and Senior Services
3175 W. Sixth Street
Los Angeles, CA 90020
213-738-2600
. Los Angeles County Community Development Commission
700 W. Main Street
Alhambra, CA 91801
626-262-4511
. Los Angeles Homeless Services Authority
811 Wilshire Boulevard
#600
Los Angeles, CA 90017
213-683-3333
. Southern California Association of Governments
Main Office
818 West 7th Street
12th Floor
Los Angeles, CA 90017-3435
213-236-180
B-1
Resolution No 2014-05
Exhibit A
Page 112 of 114
APPENDIX B — ORGANIZATIONS CONSULTED, DATA SOURCES & DEFINITIONS
• State Employment Development Department
Labor Market Information Division
Customer Outreach Unit
P.O. Box 826880, MIC 57
Sacramento, CA 94280-0001
916-262-2162
• State Independent Living Counsel
1600 K Street, Suite 100
Sacramento, CA 95814
866-866-7452
B. DATA SOURCES
• 2000 and 2010 Census
• 2005-2009 American Community Survey
• California Department of Housing and Community Development, Year 2013 Income
Limits, February 25, 2013
> California State Board of Equalization, Assessors' Handbook Section 531, Residential
Building Costs, January 2010
> City of Rancho Palos Verdes, General Plan
> City of Rancho Palos Verdes, Zoning Ordinance
• Federal Financial Institutions Examination Council (FFIEC), Home Mortgage Disclosure
Act (HMDA), Loan Application Register System (LARS), 2011
> HSH Associates, Financial Publishers, Interest Rates
> International Code Council (ICC), Building Valuation Data (BVD), August 2012
• Barbara Kautz, Goldfarb & Lipman LLP, Select California Laws Relating to Residential
Recovery Facilities and Group Homes, (presented at the Residential Recovery Facilities
Conference, Newport Beach, March 2, 2007)
• Los Angeles County Community and Senior Services, Survey of Older Adult Population,
2010, 81 pages
> Pacific West Association of Realtors Multiple List Service
• Realist property tax records available from Pacific West Association of Realtors
• Southern California Association of Governments, 5rh Cycle Final Regional Housing
Needs Assessment Allocation Plan, adopted by the Regional Council on October 4,
2012
B-2
Resolution No 2014-05
Exhibit A
Page 113 of 114
APPENDIX B — ORGANIZATIONS CONSULTED, DATA SOURCES & DEFINITIONS
Southern California Association of Governments, Local Housing Element Assistance:
Existing Housing Needs Data Report, City of Rancho Palos Verdes
Southern California Association of Governments, 2012-2035 Regional Transportation
Plan/Sustainable Communities Strategy Growth Forecast (adopted by SCAG Regional
Council on April 4, 2012)
State of California, Department of Finance, E-5 Population and Housing Estimates for
Cities, Counties, and the State, 2011 and 2013, with 2010 Benchmark Sacramento,
California, May 2013
State Independent Living Council, 2009 Statewide Needs Assessment for People Living
with Disabilities, 40 pages
Alene M. Taber, Esq., AICP and Michael J. Alti, Esq., Jackson, Demarco, Tidus &
Peckenpaugh, Residential Recovery Homes and Their Local Impacts, (presented at the
Residential Recovery Facilities Conference, Newport Beach, March 2, 2007)
Telephone interviews of resident apartment managers
U.S. Department of Housing and Urban Development, 2005-2009 CHAS
(Comprehensive Housing Affordability Strategy)
C. DEFINITIONS
Above Moderate Income: A household whose annual income is 120% or more of the Los
Angeles County median income, adjusted by number of persons in the household.
Cost Burden: For lower income households, gross housing costs including utilities that exceed
30% of gross income
Crowdina. Overcrowdina: A housing unit containing more than one person per room, as defined
by the U.S. Census Bureau, for which data are made available by the Census Bureau.
Developmental Disability: "Developmental disability" means a disability that originates before an
individual attains age 18 years, continues, or can be expected to continue, indefinitely, and
constitutes a substantial disability for that individual. As defined by the Director of
Developmental Services, in consultation with the Superintendent of Public Instruction, this term
shall include mental retardation, cerebral palsy, epilepsy, and autism. This term shall also
include disabling conditions found to be closely related to mental retardation or to require
treatment similar to that required for individuals with mental retardation, but shall not include
other handicapping conditions that are solely physical in nature.
Disabled Person: A person who is determined to:
(1) Have a physical, mental or emotional impairment that:
(i) Is expected to be of long -continued and indefinite duration;
(ii) Substantially impedes his or her ability to live independently; and
(iii) Is of such a nature that the ability could be improved by more suitable housing conditions;
or
(2) Have a developmental disability, as defined in section 102(7) of the Developmental
Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001-6007)
B-3
Resolution No 2014-05
Exhibit A
Page 114 of 114
APPENDIX B — ORGANIZATIONS CONSULTED, DATA SOURCES & DEFINITIONS
Elderly: Persons 62 years of age or older.
Emeraencv Shelter: Housing with minimal supportive services for homeless persons that is
limited to occupancy of six months or less by a homeless person. No individual or household
may be denied emergency shelter because of an inability to pay. (per Health and Safety Code
50801)
Extremely Low Income: A household whose annual income is between 0% and 30% of the Los
Angeles County median income, adjusted by number of persons in the household.
Homeless person: According to HUD, a person is considered homeless only when he/she
resides in one of the places described below at the time of the count.
An unsheltered homeless person resides in place not meant for human habitation,
such as cars, parks, sidewalks, abandoned buildings, or on the street.
A sheltered homeless person resides in: An emergency shelter or transitional
housing for homeless persons who originally came from the streets or emergency
shelters.
Larae family: Family of five or more persons.
Low Income: A household whose annual income is between 50% and 80% of the Los Angeles
County median income, adjusted by number of persons in the household.
Moderate Income: A household whose annual income is between 80% and 120% of the Los
Angeles County median income, adjusted by number of persons in the household.
Overpavina: Same as cost burden and severe cost burden
Severe Cost Burden: For lower income households, gross housing costs including utilities that
exceed 50% of gross income
Small family: Family of two to four persons.
Supportive Housina: Housing with no limit on length of stay, that is occupied by the target
population as defined in subdivision (d) of Section 53260, and that is linked to onsite or offsite
services that assist the supportive housing resident in retaining the housing, improving his or
her health status, and maximizing his or her ability to live and, when possible, work in the
community. (per Health and Safety Code 50675.14(b))
Transitional Housina: Buildings configured as rental housing developments, but operated under
program requirements that call for the termination of assistance and recirculation of the assisted
unit to another eligible program recipient at some predetermined future point in time, which shall
be no less than six months. (Per Health and Safety Code 50675.2(h))
Very Low Income: A household whose annual income is between 30% and 50% of the Los
Angeles County median income, adjusted by number of persons in the household.
B-4