HomeMy WebLinkAbout121923-05.05
ADMINISTRATIVE STAFF REPORT 5.5
TO: Mayor and Town Council December 19, 2023
SUBJECT: Authorize an amended Town response to Contra Costa County Grand
Jury Report No. 2306, “Affordable Housing: A Plan Without a Home”
BACKGROUND
On September 5, 2023, the Town Council approved a response to the Contra Costa
County Grand Jury’s report No. 2306, “Affordable Housing: A Plan Without a Home.”
As required by law, the Town’s response was forwarded to the Superior Court.
On November 28, 2023, the Town received a letter from the Foreperson of the Civil Grand
Jury indicating that one of the Town’s responses did not comply with the legal standard
set forth in Penal Code Section 933.05. (Attachment A) This staff report recommends
approval of an amendment to that one response, with the amended response to be
submitted to the Grand Jury Foreperson.
DISCUSSION
The response in question related to Recommendation R10 in the grand jury report, which
reads as follows:
“Each city and the County should consider prioritizing Measure X funding requests that
support projects that address RHNA targets for very low- and low-income residents.
Each city and County should consider reporting regularly to their residents on the use of
Measure X funds for such purposes.”
The Town’s response in September read as follows:
“The recommendation has not yet been implemented, but will be in the future. Measure
X is a countywide funding source with limited housing funding which will be awarded
through a grant process. To the extent that the Town is eligible for Measure X funds, the
funds would be prioritized for affordable housing projects and if such funds are received,
the Town would regularly report on the use of such funds.”
Civil Grand Jury Response 2 December 19, 2023
This response was rejected as not including a timeline (the letter refers to failure to
include a “date”, but the Penal Code only requires a timeline) within which the Town
will implement the recommendation. We did not initially include a timeline because it is
unclear when the Town would have a qualifying project. However, in an effort to
respond to the request, the following amended response is proposed (shown in
redline/strikeout):
“The recommendation has not yet been implemented, but will be in the future. Within
the next two years, the Town will declare as surplus the former Town offices located at
510 La Gonda Way. The Town Council has already indicated the intent to partner with
a developer to construct multi-family, low-income housing at the site, which will require
grant funding. Once the Town selects a development partner, which is anticipated to
occur within that two-year window, an application for Measure X is a countywide
funding source with limited housing funding which will be awarded through a grant
process. To the extent that the Town is eligible for Measure X funds will be submitted.
The Town will also immediately provide information to any developers proposing low
income projects within Danville of the potential availability of Measure X funds. , the
funds would be prioritized for affordable housing projects and if If any such funds are
received, the Town would regularly report on the use of such funds to its residents.”
PUBLIC CONTACT
Posting of the meeting agenda serves as notice to the general public.
FISCAL IMPACT
None.
RECOMMENDATION
Authorize an amended Town response to Contra Costa County Grand Jury Report No.
2306, “Affordable Housing: A Plan Without a Home.”
Prepared and Reviewed by:
Robert B. Ewing
City Attorney
Attachments: A-November 16, 2023 letter from Civil Grand Jury Foreperson
B-Draft Amended Response to Grand Jury Report No. 2036
ATTACHMENT A
“Small Town Atmosphere
Outstanding Quality of Life”
5 0 0 L A G O N D A W A Y , D A N V I L L E , C A L I F O R N I A 9 4 5 2 6
Administration Building Engineering & Planning Transportation Maintenance Police Parks and Recreation
(925) 314-3388 (925) 314-3330 (925) 314-3310 (925) 314-3320 (925) 314-3450 (925) 314-3700 (925) 314-3400
December 19, 2023
Joanne Sarmento
Contra Costa County Civil Grand Jury-Foreperson
725 Court Street
P.O. Box 431
Martinez, CA 94553-0091
Re: Contra Costa County Grand Jury Report No. 2306, Affordable Housing: “A Plan
Without a Home."
Dear Ms. Sarmento:
On September 5, 2023, the Town Council reviewed and authorized a response to Contra
Costa County Grand Jury Report No. 2306, “Affordable Housing: “A Plan Without a
Home.” On November 28, 2023, the Town received your letter (dated November 16, 2023)
notifying the Town that our response to Recommendation #10 in the Grand Jury report
did not comply with Penal Code Section 933.05 because it did not contain a date by which
we propose to implement that recommendation.
In response to your letter, the Town has amended our response in order to apply a
timeline for implementation. We cannot provide a precise date but have set forth a
specific timeline, consistent with Penal Code Section 933.05(b)(2). We have included this
amendment in redline/strikeout format so that you and the Grand Jury may more easily
evaluate the change. We have also provided a clean copy for your files. Thank you for
your work on this subject.
Grand Jury Findings
Finding #1: Within existing city or County infrastructure there is no clear owner who is
responsible for achieving RHNA permitting targets.
Response: Danville partially disagrees with Finding #1. Because the Town does not
have any control over market forces that actually lead to development of housing, we do
not “own” the ability to achieve RHNA goals. However, the Town does “own” the
obligation to adopt a Housing Element which provides a framework and tools to allow
property owners and developers to meet the Town’s RHNA allocation. The Town also
owns the annual obligation to report progress towards its RHNA obligation to the state.
ATTACHMENT B
December 19, 2023
Page 2
Finding #2: City and County officials see no direct path to meet state -mandated
regional housing (RHNA) targets.
Response: Danville partially disagrees with Finding #2. While the Town recognizes
the challenges in meeting the mandated RHNA targets, the Housing Element submitted
to the state identifies adequate sites, programs and strategies that would provide
property owners and developers a clear path to develop sufficient housing to meet our
RHNA targets. The Town is continuing to work with officials at the Department of
Housing and Community Development (“HCD”) as well as the community to ensure our
Housing Element is certified by HCD. However, the Town is not a housing developer
and does not actually construct the units.
Finding #3: There are currently no measurable penalties if a city or a County does not
achieve RHNA targets in an approved housing element plan.
Response: Danville partially disagrees with Finding #3. While there are no direct legal
or financial penalties if RHNA targets are not met, there are penalties for not
accommodating RHNA in a Housing Element and the consequences for not issuing
adequate permits can be punitive.
Jurisdictions are subject to penalties if they do not adopt a Housing Element that is
certified by the State, including designating adequate sites to accommodate the RHNA
targets. For example, cities and the County may be subject to litigation from individuals,
housing rights’ organizations, developers, and/or HCD. Depending on court decisions,
local control may further diminish beyond that prescribed in State law, including, for
example, suspending the cities’ or County’s authority to issue building permits or
approve certain land use permits. Cities and the County may also be subject to court -
issued fines, court receivership, and streamlined approval processes that remove local
discretion.
Finding #4: Data published by ABAG shows that Contra Costa County and most of its
cities have missed their current RHNA targets for very low- and low-income housing
allocations. The allocation requirements continue to increase (16x for very low-income
and 4x for low- income residents).
Response: Danville partially disagrees with Finding #4. The Town’s RHNA low and
very-low income assignments for the 5th Cycle Housing Element (2014-2022) were not
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met. The Town’s assignments for the 6th Cycle did not increase by the percentages stated:
both categories were increased approximately 3 times the prior number.
Finding #5: Many obstacles hinder the development of AH at the local level, specifically
for very low- and low-income housing, including:
a. Limited availability of land;
b. Restrictive zoning policies specific to AH development;
c. Limited developer interest to bring projects forward;
d. Limited available funding;
e. Lack of community support;
f. NIMBY opposition & city council response to NIMBY opposition.
Response: Danville partially disagrees with Finding #5. Though these obstacles can
hinder development of affordable housing in any community, the Town is addressing
each item in our Housing Element programs, policies, and actions to the extent feasible
and considered acceptable to HCD. It has been the Town’s experience that the primary
obstacles to truly affordable housing are the cost of land, the cost of construction and the
limited funding available to subsidize such projects.
Finding #6: Zoning changes are generally addressed only when a project is presented
for development. Zoning obstacles include:
a. Housing element plans that offer poor land choices for AH development;
b. Restrictive height and high-density zoning policies;
c. Lack of inclusionary housing ordinance(s) in many cities.
Response: Danville disagrees with Finding #6. Cities adopt housing elements every
eight years and as part of that process, are required to ident ify feasible sites for housing
that meet the criteria spelled out in Government Code Section 65583.2(b). Cities are then
required to change the General Plan and zoning to allow development by right on those
sites. In addition, the state planning law requires cities to adopt and apply objective
development standards that allow developers to understand the applicable parameters
they are working with. Danville has had an inclusionary housing ordinance since the
1994 and has applied the ordinance to ensure all housing projects contain affordable
units.
Finding #7: Penalties directed at cities and the County (financial, loss of control over
local planning) are tied to not meeting state deadlines for Housing Element plan approval
December 19, 2023
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Response: Danville agrees with Finding #7.
Finding #8: Builder’s Remedy and SB35 projects do not address ingrained local
obstacles identified in this report that prevent the completion of approved AH projects.
Response: Danville partially disagrees with Finding #8. While Builder’s Remedy and
SB35 may address some obstacles identified in the report by streamlining approval
processes, they do not in any way address the primary obstacles holding back the
development of truly affordable housing in Danville: the costs of land and construction
and the lack of funding.
Finding #9: When local Redevelopment Agencies (RDA’s) were discontinued by the
state in 2012, the County and cities did not address the loss of funding for affordable
housing or find alternative funding to support affordable housing projects until voters
passed Measure X in November 2020. Projects that target very low- and low-income
residents were particularly impacted.
Response: Danville partially disagrees with Finding #9. The Town agrees that the
elimination of redevelopment took away a significant source of funding for affordable
housing, the ability to replace those funds locally is significantly limited by the State
Constitution, which would require 2/3’s voter approval for any local tax to support
housing.
Measure X, the countywide 20-year ½ cent sales tax, is projected to provide up to $12
million annually for “housing and related services” for the entire County, including 19
cities and the County. Contrast that with the dedicated low and moderate housing funds
the Town received from its RDA. In Fiscal Year 2011/12, the last year before the state
mandated dissolution of the RDA, the Town received $463,000 in low and moderate
housing funds, to be spent only in Danville.
Finding #10: Measure X housing funds are not fully dedicated to building AH for very
low- and low- income residents.
Response: Danville agrees with Finding #10.
Finding #11: Local funding provided by bonds like Measure X Housing Fund is a critical
component of a developer’s overall ability to raise funds for an AH development.
December 19, 2023
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Response: Danville partially disagrees with Finding #11. As mentioned in the
Response to Finding #9, while the funds from Measure X are welcome, the amount of
funding available countywide is insufficient to be deemed critical to funding. To
illustrate the extent of funding necessary to ensure development of low-income housing,
the Town can point to its assistance in helping finance the development of the Sycamore
Place Apartment project, a 74-unit low income, senior housing project developed by
BRIDGE Housing in 2003.
The total development cost for the project was approximately $13,000,000 , of which the
Town contributed $6,700,000 through a combination of land donation and the sale of
bonds. Contra Costa County contributed an additional $1,600,000 as a loan. These public
funds, in total, constituted 64% of the total project funding. That level of funding is
critical.
Finding #12: Cities that proactively engage citizens, address zoning obstacles, make
reasonable zoning concessions, work collaboratively with developers, provide local
funding support, and are united in addressing NIMBY opposition, have been successful
in attracting AH projects.
Response: Danville partially disagrees with Finding #12. While proactive strategies
can help attract affordable housing developers and mitigate the barriers to housing
production, strategies alone do not result in affordable housing projects being
constructed. For example, while Danville engages in all of the above measures, numerous
other obstacles exist that impede affordable housing development and are beyond a local
jurisdiction’s control. These include the gap in financing between constructing market -
rate versus affordable housing, land costs, fees for public utilities (particularly for non -
municipal utilities), etc.
Finding #13: The latest RHNA targets for cities and unincorporated Contra Costa County
show a significant increase in the number of units that are expected to be permitted for
very low- and low-income housing.
Response: Danville agrees with Finding #13.
Grand Jury Recommendations
Recommendation #1: Each city and the County should consider assigning a staff position
with clear leadership, ownership and accountability to achieve allocated RHNA targets.
December 19, 2023
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The individual in this position would be responsible for establishing and promoting an
operational plan to achieve the RHNA goals set forth in the housing element plan.
Response: The recommendation has been implemented. California’s Housing Element
Law acknowledges that, in order for the private market to adequately address the
housing needs and demands of Californians, local governments must adopt plans and
regulatory systems that provide opportunities for (and do not unduly constrain) housing
development. Cities and Counties are not responsible for the development and
construction of housing to achieve the allocated RHNA targets. Instead, they are
responsible for the effective implementation of their housing elements and associated
programs to address any existing constraints to housing and for tracking an d reporting
the jurisdiction’s progress toward achieving their RHNA. The Town’s Planning Division
is assigned with the responsibility of the above tasks and actively engages in them.
Recommendation #2: Each city and the County should report AH progress and lack of
progress using data across all four measured income groups. Special attention should be
paid to tracking the housing needs of residents categorized as very low- and low-income.
Cities and the County should communicate their progress, biannually, against RHNA
targets at council and supervisor meetings.
Response: The recommendation has been implemented. State Law (Government Code
Section 65400) requires each jurisdiction to prepare an annual progress report (APR) on
the jurisdiction’s status and progress in implementing its housing element (HE) using
forms and definitions adopted by the California Department of Housing and Community
Development (HCD). The Town complies with this requirement.
Recommendation #3: Each city and the County should consider creating a dedicated AH
commission comprised of a multi-disciplinary team of diverse citizens and led by a
current, nonelected, city expert in planning. Each commission would be charged with
providing a community voice in the process and helping to identify and address obstacles
that hinder the development of affordable housing projects in their community.
Response: The recommendation will not be implemented because it is not warranted.
While the Town recognizes and appreciates the intent behind the recommendation, we
believe the goal is already being achieved through existing mechanisms. Danville has
been engaged in extensive public outreach and directly seeking community opinion
regarding the development of affordable housing. In addition to traditional public
hearings and information on the Town’s website, the Town created a separate website
(Danville Town Talks, https://danvilletowntalks.org/housingelement) as a means of
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soliciting and receiving public input throughout the housing element process. Specific
tools used in the process included a so-called “pin” map which allowed residents to
identify suggested housing sites throughout Town and a housing simulation tool, which
allowed residents to create their own housing plan that would accommodate the Town’s
RHNA assignment. The Town is committed to using these types of engagement tools in
the future as the most effective, and cost-effective, means of providing direct civic
engagement.
Recommendation #4: Each city and the County should consider reviewing existing
processes and identifying changes that would address or resolve the specific obstacles
identified in this report that hinder achieving RHNA allocation targets for very low- and
low-income housing in their Community.
Response: The recommendation has been implemented. Through the process to develop
and adopt a new Housing Element, the Town completed a thorough review of existing
processes and development standards that may serve as governmental constraints to
housing development. These are analyzed in depth in Appendix B to the Town’s adopted
Housing Element. As described in response to Recommendation #3, Danville has taken
affirmative steps using new technological tools to further engage the community and
seek early input. The Town has assigned staff to help expedite review of projects such as
SB9 applications and hired local architects to develop permit-ready plans for ADUs
which are provided free to any resident. The new Housing Element provides sites that
already have general plan and zoning designations that allow for by-right development
proposals.
Recommendation #5: Each city and the County should consider developing a public
dashboard to report progress against RHNA targets.
Response: The recommendation has been implemented. Each jurisdiction must prepare
an annual progress report (APR) on the jurisdiction’s status and progress in
implementing its housing element using forms and definitions adopted byHCD
(Government Code Section 65400.) Each jurisdiction’s APR must be submitte d to HCD
and the Governor’s Office of Planning and Research (OPR) by April 1 of each year
(covering the previous calendar year ). HCD compiles and showcases all APRs through
their interactive digital data dashboard with downloadable data sets.
In addition, all jurisdictions are subject to Government Code Section 65863 (No Net Loss
Law), which was amended with SB 166 in 2017, and requires jurisdictions to maintain
adequate sites to accommodate remaining unmet RHNA at each income level throughout
December 19, 2023
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the life of an adopted Housing Element. The No Net Loss Law restricts cities and the
County from approving a housing project at a lower density, or with fewer units than
identified in the Housing Element unless a corresponding number of units are
accommodated and identified elsewhere in the cities or County. To assist with the
monitoring, cities and the County are developing standard language to include in staff
reports when housing projects come forward to decisionmakers for approval and are
exploring a No Net Loss Tool to help monitor RHNA progress.
Recommendation #6: Each city and the County should consider, in their individual
Housing Element plans, putting forth land zoned “suitable for residential use,” without
development obstacles, and located strategically close to existing services, for AH
purposes.
Response: The recommendation has been implemented. As required by State Law to
receive approval of a Housing Element, jurisdictions are required to prepare a site
inventory identifying land suitable and available for residential development to meet the
locality’s regional housing needs by income level. Danville has done this. Further, in
addressing HCD’s Affirmatively Furthering Fair Housing (AFFH) requirements there is
a thorough review of the site selection via the Tax Credit Allocation’s Committee (TCAC)
Resource Map that designates areas of low-, moderate-, high-, and highest-resource
within a jurisdiction and requires specific justification for placing affordable housing
projects within low-resources areas.
Recommendation #7: Each city and the County should consider reviewing their zoning
policies to identify restrictive zoning policies unique to their jurisdiction that impede AH
projects and consider making zoning changes in light of that review that will support AH
in their community.
Response: The recommendation has been implemented. Through the Housing Element
process, jurisdictions have reviewed their zoning policies and identified potential
affordable housing development constraints unique to their jurisdiction. As described
above, the Town identified potential constraints in Appendix B to the adopted Housing
Element and has also proposed additional changes to development standards (including
density, height, parking, etc.) along with specific timelines to complete review and
adoption of additional changes to development standards.
Recommendation #8: Cities should consider adopting an inclusionary housing
ordinance as part of their standard development policy by the end of 2023 (if not already
in place).
December 19, 2023
Page 9
Response: The recommendation has been implemented. As indicated previously , the
Town first adopted an inclusionary ordinance in 1994, and subsequently updated the
ordinance in 2014. As part of the new Housing Element, the Town has committed to
reviewing the ordinance in 2024 with the intent of amending the ordinance to require
units provided be for low, rather than moderate income households.
Recommendation #9: Each city and the County should consider how to prioritize the
implementation of housing projects that promote development of very low - and low-
income housing.
Response: The recommendation has been implemented. It is important to note that under
a variety of state laws, from the Permit Streamlining Act to SB 330, every local jurisdiction
has strict timelines within which to review and act upon development applications after
submittal, whether those applications are for affordable or market rate projects. That
being said, the Town attempts to prioritize affordable projects. Through the new
Housing Element, the Town has committed to further prioritizing projects including
special needs housing and those eligible for CEQA streamlining.
Recommendation #10: Each city and the County should consider prioritizing Measure X
funding requests that support projects that address RHNA targets for very low- and low-
income residents. Each city and County should consider reporting regularly to their
residents on the use of Measure X funds for such purposes.
Response: The recommendation has not yet been implemented, but will be in the future.
Within the next two years, the Town will declare as surplus the former Town offices
located at 510 La Gonda Way. The Town Council has already indicated the intent to
partner with a developer to construct multi-family, low-income housing at the site, which
will require grant funding. Once the Town selects a development partner, which is
anticipated to occur within that two-year window, an application for Measure X funds
will be submitted. The Town will also immediately provide information to any
developers proposing low income projects within Danville of the potential availability of
Measure X funds. If any such funds are received, the Town would regularly report on the
use of such funds to its residents.
December 19, 2023
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The Town appreciates the time and effort spent by Her Honor and the Grand Jury in
consideration of these matters.
Sincerely,
TOWN OF DANVILLE
Karen Stepper
Mayor