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HomeMy WebLinkAboutMINUTES - 01051999 - C121 ...-................................................................................I.................................................................................................. ......................................................................... C. 121 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on January 5, 1999,by the following vote: AYES: Supervisors Gioia,Uilkema, Gerber, DeSaulnier and Canciamilla, NOES: None ABSENT: None ABSTAIN: None On this date, the Board of Supervisors considered the attached report from the Deputy Director of Redevelopment on affordable housing, infill development and other urban development matters. Following Board discussion, Supervisor DeSaulnier moved that the report be accepted, and Supervisor Gerber seconded the motion. The Board then took the following action: IT IS BY THE BOARD ORDERED that the attached report is ACCEPTED. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: 1999 Piff r113AUATCMHUL05R,'Clerk of the Dowd of Supervisors and County A4ninistrator B Barbara S.Gr' ,Ile ty Clerk c.c.CAO CDD—Dennis Barry Supervisor Gerber Supervisor Canciamilla Redevelopment Bay Area Ali. -for Sustainable Development Minutes April 30,1998 Brainstorming for Indicators mW Best Management Practices Worldug Groups. Next on the agenda was a focus on two of the working groups:Sustainable Development Indicators and Best Management f ractices. Several presenters provided ideas for use by mese two working groups. Judith Innes from the institute of Urban and Regional Development at UC;Berkeley addressed indicators as a means to build the capacity in our society to deal witli issues as they come along. She suggested that indicators: I}must be linked to policy or at least be something that we're very committed to, 2)need buy-in by all the agencies that produce the data necessary for the indicators, 3)must be high=quality,i.e.,credible to all stakeholders. She also stressed that all stakeholders need to be at the table as the indicators are developed,and that the individualstorganizations that can do something about a disturbing trend in an indicator also be at the table. Finally,she recommended that targets be set to establish indicators in a timely manner but that we not be disappointed if we are unable to finalize sustainable development indicators for the Bay Area by next year. Two papers authored by Judith-Indicators for Collective Learning and Action-Rethinking Planning for Complex Systems and Metropolitan Development as a Complex System:A New Approach to Sustainability were recommended as resources for the working group. Linda Bagneschi,from the Silicon Valley Environmental Partnership(affiliated with Joint Venture: Silicon Valley)discussed JV:SV's Silicon Valley Index. The 1998 Index had 14 economic indicators, 19 quality of life indicators,and three environmental indicators. The'Working Partnership(Laboes response to IV-.SV)developed a competing set of indicators. In Linda's experience, lessons teamed include: » dialog amongst the three e's is healthy and we need to ensure that we simultaneously adopt indicators for all three e's rather than a single`e'in isolation; normalizing an indicator may"mask"certain critical information,e.g., if you're interested in the"human footprint"we should be looking at total water usage rather than water usage per capita,which would be beneficial if we are looping at carrying capacity; within the environmental area,we should focus on the areas identified by scientists as the highest risk areas;and it is very difficult to find indicators to track endangered species and habitat. Tom Hinman of the Bay Area Council provided an overview of issues related to the work of the Best Management Practices working group. Afi Efuru of BADCAT spoke about BADCAT's experience in identifying best management practices and strategies related to base closure efforts. The following feedback,comments and suggestions were provided during the open session on the Indicators and Best Management Practices working groups,which was facilitated by Cil Friend (cooperation between the Indicators and Best Practices working groups throughout the process was stressed.): Indicators: • Include indicators about,how people feel about their well being,i.e.,subjective criteria; • Use existing data and systems as much as possible,such as ABAG's numerical log of indicators; » To the extent appropriate,apply the equity indicators from the Bay Area.Partnership; • Use extracted throughput per dollar of revenue as an industrial sustainability indicatot; • Apply indicators that are integrative of the 3 e's; Page 3 Bay Area'All+.. for Sustainable Development Minutes April 30,1998 * Look to the PCSD for gnats and examples of indicators; • Ensure the ability to'disaampte infonfiation for certaia population segments; * Should we have indicators that go beyond federal air quality indicators? Candidate Indators: + Track the loss of existing affordable housing;.. * consider the-use of sub-reeonal"hot spot"indicators for specific places where impacts of environmental problems or social inequity are the greatest; + Define terms that promote sustainable development,e.g.,gross regional product,should account for environmental degradation,and should account for environmental remediation as negative,not a positive, * Types of indicators * Performance measurements + Macro-indicators for certain issues Include indicators for individuals,organizations,and commitments. Best Management Practices * Composting/landfill reduction • Training opportunities • Business policy/program ideas • Self-reliance enhancement practices in a global economy • Meta-listing of principles and problem solving"how to'e' IV. Regional Agencies and Local Governments. Crary Binger reported that the alliance had facilitated a successful meeting of the five regional agencies--the Metropolitan.Transportation Commission,Bay Conservation and Development Commission,Bay Area Air Quality Management District,San Francisco Bay Regional Water Quality Control Board,and Association of Bay Area Governments. Subsequent meetings with high-level staffs of these organizations have'led to,an interest to pursue a joint project. The agencies see it as their common interest to promote compact development, especially near public transit nodes. At the local level,ABAG`s General Assembly meeting on April 17,1998,which was co-sponsored by Urban band institute,attracted 300 people..The meeting focused on the theme"The Future of the Bay Area." Attendees provided feedback to local elected officials on the strategies contained in ABAG's newly published Vends&Challenges report which include: • increasing cooperation with adjoining regions,e.g.Central Valley; * passing legislation to eliminate the two-thirds voting requirement for new taxes, * advocating for state fiscal reform to mitigate the fiscalization of land,and • educating public on the real impacts of high-density housing and its benefits. ABAG intends to facilitate more subregional planning grants this year. V. Carl Anthony closed the meeting by challenging the group. He said that there am 12,000 homeless people in San Francisco. He suggested that we use the waste redaction model of Ray Andersen and Interface and commit tis reducing homelessness by 1/2 every three years. He further challenged the group to ensure that the adopted indicators focus on the basic needs of the community. The next meeting of the Alliance will be on July 30, 1998 at Dominicain College in San Ilafhel,Marin County. Page 4 1. Bay Area All, e for Sustainable Development Minutes April 30,1998 Proposed Alliance Working Groups: General: In addition to working groups,the Alliance will retain its four working caucuses--social justice,regiogal agencies,sustainability roundtable,and economic/employer. Each working group will optimally have three chairs,representing each of the three-jes economic prosperity,environmental quality and social equity.Additionally,each working group should include a member of local government,preferably someone who brings the perspective of one of the e's. The products of the working groups should reflect the three e's. 1. Bay Area-Sustainable,Development Indicators Charter. Develop a group of high-level indicators(5-10)balanced between economic,social and natural environment. Note:working groups and working caucuses may also have indicators. These indicators are not necessarily identical to these:higher level indicators. Products: Specific indicators and sources of necessary data. Baseline data and report on past and current (1995 or later if possible)status. 2. Best Practices List. Charter: Develop a list of best management practices for use by community economic development practitioners and Local Reuse Agencies. Additionally,develop a list of Crest management practices for use by businesses and individuals. _Products- A list of practical best management practices with examples ofcost/benefit for each,where they have been implemented. 3. )dousing,,lobs and Access C anter; Address the housing needs associated with the continued growth in jabs in the Bay Area. Address transit-oriented and infill development and urban limit lines. Also address equitable housing and affordable access and specifically,the relationship of transit and infill development to the 45 under- employed neighborhoods identified by the Bay Area.Partnership(BAP). Identify barriers and potential incentives to locate jobs where housing currently is.Identify opportunities for enhancing education/training in"BAP"-designated neighborhoods Products:A map illustrating spatial concentration of jabs and housing in the Bay Area,goals (intermediate and long-term)to enhance the balance,and an action plan with strategies and tactics to achieve the goals. 4. Environmental Quality and Biodiversity Charter:identify the most important natural resource environmental elements that need preservation, protection and/or enhancement. Identify the environmental features that should never be compromised. Identify the most important biodiversity and ecological strategies for the region. Ensure protection of and encourage rehabilitation,of communities that are seriously environmentally compromised. Products;a map illustrating the most important natural resource elements and the spatial concentrations of the environmental features that should not be compromised.Develop goals,strategies and implementation actions. 5. Public Education&Media Strategy Charter:Create a sense of"region"as a value in the Bay Area and an understanding of the concept of sustainable development within the Bay Area community. Help Bay Area residents understand how they can live in more sustainable manner: Product:a public education/outreach action plan that identifies key messages to achieve the charter objectives. he plan should also include media strategies both for the charter objectives and for Page 5 "Bay Area Alh— for Sustainable Development Minutes April 34,1998 publication of Alliance accomplishments and indicator reports. Universities and other education experts should be involved. 6. Local/regional fiscat(tax policy options Charter:Using,the'information derived from the ether working groups,identify and develop'fiscal and tax policy options that can be implemented at the local,regional,state and national levels that will eliminate disincentives and provide incentives which will help the Bay.Area accomplish its sustainability goals. Note: This working group will be created after information from the other working groups is available. Page 6 .. BA} AREA ALLIANCE MEEnNG ATTEND.4MCE DATE OF 'MEETING: April 30, 1998 LOCATION OF MEETING: SIERRA CLUB,SAN FRANCISCO THE FOLLOWING WERE IN ATTENDANCE: Anderson, Ray,PCSD Anthony,Carl, Urban Habitat Baack, Larry, Bay Area Economic Forum Bagnesch€, Linda, Environmental Partnership Beeler, Tam, Mountain Stream Behrman, Bill, Stanford University Ses€eme, Kate, Redefining Progress Binger, Gary,ABAG Bone, Diane, Irvine Foundation Boren,Ann, Green Team Project Brown, Kirk,Center for Resource Solutions Buttock Theuriet,Catherine, Non-Profit Housing Cahn, Lawrence, Feasible Properties Carter, Clay„CCLR Clarke, Dick,P.G.&E. Closson, Michael,Center for Economic Conversion Desoteile, Vic, sustainable Business Development Network Edmondson, Scott E., EIP Associates Efuru,Aft, BADCAT Elizabeth, Lynne,A., D.&P.'s for Social Responsibility- Estrada,Tord. Earth Island Institute Friend,Gil,Gil Friend and Associates Garland, Jane, Redefining Progress Gteenberg, Millie,ABAG, Regional Planning Committee Gregory. Donelie,Sustainable S.F. Gustafson, Reid,Shea Homes Harper, Greg, BAAQMD Heim, Bill, MTC Hinman, Torn, Bay Area Council Hoggatt,Austin, Interfaith Coalition for Green Planning Holmes, Henry, Earth Island Institute Holtzclaw,John, Sierra Club Page 1 of 3 BA .,REA ALLIANCE MEETING AMND,,,,ICE DATE OF MEETING: April 30, 1998 •LOCATION OF MEETING: SIERRA CLUB, SAN FRANCISCO Hough,Bill,fftesour+ce Center for the United Nations Innes, Judith,,UC Berkeley, IURD Jacobs,Janet,Sustainable S.F. -Johnsen, Huey, Resource Renewal Institute Karlenzig,Warren, Gil Friend and Associates Kleeman, Michael, Boston Consulting Group Kennedy, James, Contra Costa County Kirkwood, Corey, Resource Renewal Institute Kirschenbaum,Josh, Institute for Urban and Regional Development Kittermaster,Carni Sustainable San Mateo Kranz, Dorie Krehbiel,Meg, Environmental Defense Fund Krich, Ken, Cal/EPA Kunofsky,Judy, International Council for local Environmental Indicators Lewis, Sherman, Cal State University Lui, Donna, NRDC Magilavy, Beryl, City of S.F., Dept.of Environment Matsuura,Jean, League of Women Voters of the Bay Area McLeod, Denny, Reg.Water Quality Control Board McPeak, Sunne, Say Area Council Melhus4 Peter, P,G.&E. Metcalf,Gabriel, SPUR Mezey, Peter,SPUR Michael,Andrew, Bay Area Council Miller.Don, Interfaith Coalition for Green Planning Minus,George, Resource Center for the United Nations Moore, Hang, Marin County Supervisor Morrison, Rich, Bank of America Morse,.Linda, CH2M Hill Mouber, Sy Mussen, Irwin, Urban Habitat Program Nixon,.tames, Progressive Asset Management Odiand, Bob, Urban Ecology . Page 2 of 3 BA? ..RF_A ALLIANCE IVIEETING ATTEND,.,JCE BATE OF MEETING: Apiail3o, 1998 LOCATION OF MEETING: SIERRA CLUB, SAN FRANCISCO Okamoto, Paul,Okamoto Saijo Architects Ortendahl,Mary,EDA,B Pagels,Marcia, Sustainable San Mateo County—Tides Center Perrault, Michele, Sierra Club Peterson, Rachel, Urban Ecology, Inc. Poirier, Juliane, Sonoma Economic Development Board Quigley,John Rivard, David, Ironwork and Airline Ambassadors Rivard, Nancy,Ironwork and Airline Ambassadors Robbins, Jim, Environmental Business Cluster Rogers,Jana, The San Francisco Foundation Rose, Marian,Seal Rock Consulting Group Sayer,Jim, Greenbelt Alliance Scandone,Ceil,ABAG Seraydarian, Harry, US EPA, Region XI Soule, Renee, ICGP Sprague, Tish, Calif. Environmental Trust Taylor, Stan,Bay Area Council Transportation Committee Travis,Will, BCDC Tufts, Robert, BCDC Villanueva, Trina,Greenlining Institute Webster, Robin.Tide Center Weiner, Peter, Paul Hastings,Janofsky and Walker Weisz, Dawn,Sustainable North Bay Wilhelm, Chuck,Chuck Wilhelm and Associates Page 3 of 3 Attachment ° CONTRA COSTA COUNTY "tl iV t'€N1 TY DEVEMP'AVENT DEPARTMENT DATE: November 30, 1992 TO: Internal Operations Committee Su Ro 1. Schroder 5 dr a Wright McPeak FROM. Jim edy Dep Direct - Redevelopment SUBJECT: P' o Q Internal Operations Committee Report on Housing Trust nd On August 4, 1992, the Board of Supervisors accepter! the Report of the Internal operations Committee CIOQ on the Final "Report of.the Housing Trust Fend Task Force. That report directed the Community Development Department to perform the followingtasks: o Report to the IOC on a proposed charge, size, composition,and-.list of'potential members for the Housing Trust Fund Advisory Board. o Obtain comments from the Contra Costa Transportation Authority and cities on their preferences among the three revenue sources proposed for the Housing Trust Fuad. o Review the concept of inclusionary housing programs, including the program implemented by the City of Modesto, discuss with representatives of the Building Industry Association, and provide comments.or recommendations to:the ICC. This report details the Department's progress in accomplishing each of these tasks. Staff recommendations and report highlights are summarized in the following. I. RECONZ4ENDATIONS AND F INGS o Staff recommends that the Board of Supervisors appoint an,Interim Housing Trust Found Advisory Board to: 1. develop an implementation strategy for revenue souirces selected to capitalize the Housing 'Trust Fund; 2. work with the Board of Supervisors to establish the Trust Fund as a>legal entity, and 3. • recommend policies, programs, and criteria to allocate Trust Fund' revenues within the context of Board priorities. o Staff recommends that the.Interim Housing Trust Fund Advisory Board -consist of seven members representing Contra Costa, Cities, the local building industry, nonprofit � ;} housing developers,non-profit housing. advocates the real estate industry, financial y .. TTrC . Y r!':. w+ 4idQ!a'We:�•`K1Y4�t•Riiiu.Y.y✓9..u.. ..... .: ..�—.;.mstattncions;-a�nciwth o The Contra Costa Transportation Authority deferred to the Mayorr$' Conference and individual cities with regard to formal comments on the Rousing 'frust Fuad. o The Mayors' Conference expressed unanimous opposition to increases in landfill tipping fees; no comments were offered on the other funding sources. o Correspondence was received from the cities of Antioch, Concord, Martinez, and Walnut Creek. The cities of Walnut Creek and Antioch supported the concept of a general: obligation bond to provide resources for a countywide Rousing Trust Fund. While Concord was neutral. Each of the four cities oppossed landfill tipping fees. Martinez inquired about the organizational structures of the Trust Fund. o The Building Industry Association is not generally in favor of inclusionary housing programs as a means of increasing affordable housing. o Over 48 California jurisdictions have implemented inclusionary housing programs. 1. Target populations for these programs include very-low, law and moderate income households. 2. Requirements for the inclusion of affordable units in new developments range from 5 to 35 percent, with the majority falling in the 10 to IS percent range. 3. Required terms of affordability range from zero to perpetuity; majority of programs require 30 years. 4. In lieu fees are an option in most programs; fees range from $2,100 to over $18,000 per unit. 5. Most programs offer developer incentives,including density bonuses, fee waivers, relaxed design standards, and fast tracking. o The City of Richmond is the only City currently implementing an inclusionary housing program in Contra Costa County. o The City of Modesto has adopted an equity share program for first-time homebuyers. The program charges a fee for each housing unit built in excess of 800 square feet+ The fees are used to provide silent seconds to first-tune homebuyers at market interest. Upon resale,.the City receives the amount of the loan,interest,and a share in unit appreciation. JL CONTRA, COSTA COUNTY HOUSING TRUST FUND INTERIM ADVISORY BOARD Y A. ReMn„sibilities Staff recommends that the Board of Supervisors create an Interim Housing Trust Fund Advisory Beard to further refine and assist in implementing the recommendations contained in the Final Report of the Housing Trust Fund Task Force. The interim Advisory- Board should be � ...�+respan ib Briar up sQrs and work with-the Board— Community Development Department to accomplish the following tasks: I. Outline and develop a preliminary strategy for securing public support necessary to implement the revenue sources selected to capitalise a Contra Costa.County' Housing Trust Fund; 2. Further define the appropriate institutional and operating structure for.*he Housing Trust Fund, and work with the Board of Supervisors and, if appropriate, other jurisdictions to establish the Housing Trust Fundas a legal entity authorized to accept and allocate resources for affordable housing development.in Contra Costa County; and 3. Develop recommendations concerning specific policies, programs, and funding criteria to guide the allocation of Trust Fund revenues to improve homeownership opportunities for low and moderate income households and assist very low income households to obtain affordable rental housing. B. Structure Staff recommends that the Interim Housing 'Trust Fund Advisory Board be appointed-by the ;Board of Supervisors and consist of seven members representing the following groups: 1. Contra Costa Cities; 2. local building industry; 3. nonprofit affordable housing developers; 4. aGnprofit housing advocates; 5. real estate industry, 6. financial institutions; and 7. the County. In addition to specific:group representation, Interim Board members should: be-knowledgeable and concerned about the affordable housing needs of low and moderate imcome households in Contra Costa County; provide adequate geographic representation; and have technical expertise in affordable housing development or other related-areas. Staff has deferred formal solicitation of individuals interested in serving on an Interim Advisory Board pending approval of the recommended structure and,responsibilities by the Board of Supervisors. Informal discussions and-expressions of interest by possible participants have occurred. The core of the intrest tas been expressed by Housing Trust Fund' Task Force members. atl�nl.-H,orucing Trust Fund Advisory Boa_md Once the revenue sources for a Housing'Trust Fund are identified and .securest and the Housing Trust Fund legally established, a new, permanent Advisory Board should, be created. As . recommended by the Housing Trust Fund Task Force in their final report, if 1he'frust Fund is 3 -: r2:+ •'.. t capitalized solely with inclusionary in-lieu fees from the unincorporated area of Contra Costa County, th,6. 30u tgl' B d-sh sld ate-app Wd-6y,1 ;respon ble-to the Board of Supervisors. Alternatively, if the Housing Trust Fund also dudes revenues from countywide resources(e.g.,general obligation bond, landfill tipping fee),then the Housing Trust Fund should be jointly controlled by Contra Costa. Cities and the County. A Housing Trust Fund Authority composed of elected City and County ods or their representatives should be established as a separate legal entity authorized to make decisions on Trust Fund policies and project funding. The Authority should be assisted by a Housing Trust FundAdvisory Board. The recommendations of the Housing Trust Fund Task Force:should serve as the starting point for the Interim Advisory Board in their efforts to develop detailed recommendations on the structure and responsibilities of a permanent Housing Trust Fund Advisory Board. A summary of Task Force recommendations is included with this report as Attachment-A. As its final task, the interim Advisory Board should assist the Board of Supervisors (and other jurisdictions, if appropriate) to-recruit qualified members for the permanent Housing-Trust Fund Advisory Board. M. CITY PREFERENCES AMONG PROPOSED REVS SOURCES As directed by the.Board of Supervisors, Contra Costa Cities, the Mayors' Conference, and the Contra: Costa Transportation Authority were asked, to comment on the revenue sources recommended for creation of the Housing Trust Fund. A. City Comments Based on the view that landfill tipping fees in Contra Costa County are high relative to those in other jurisdictions, City representatives attending the Mayors' Conference'were unanimous in their.opposition to increases in tipping fees to support affordable housing development. No comments were offered on the use of general obligation.bonds or inclusionary housing in-lieu fees to capitalize a Housing Trust Fund. In additional correspondence, the cities of Walnut Creek and Antioch stated that they would support a general obligation bond to provide resources for a Countywide Housing Trust Fund, but would be opposed to increased landfill tipping fees. The City of Walnut Creek also supported the concept of an inclusionary program and the Task Forcerecommendation that the Housing Trust Fund should be jointly controlled by Contra Costal Cities and the County if funds are provided from countywide sources. The City of Concord indicated their concurrence with the views expressed by the Mayers' Conference. In addition, Concord is neutral on the use of general obligation bonds and inclusionary fees in the unincorporated area for affordable housing purposes. The City of Martinez staff forwarded a series of questions regarding the specific organization and-operational structure of a Housing Trust Fund. Additional comments included concerns that landfill tipping fees were already high and that an inclusionary program would further increase -. the cast of providing housing in Contra Costa. Copies of the City letters are included as Attachment B. 4 E!, Contra Qjta Transvttrt rn Aulh y Tice Executive Director of the Transportation Authority has indicated that they will-defer to the Mayors' Conference and individual cities with regard to forte comm nts=,the Taste Force. Final Report and recommended revenue sources. However, Transportation AW!brrty members have expressed 'interest in a joint workshop with the County and the Mayors' Conference to discuss implementation policies with regard to affordable housing. W. INCLUSIONARY HOUSING PROGRAM In its final report, the Housing Trust Fund Task Force recommended that the Board consider an inclusionary housing program with an in lieu fee component as a:potential revenue source for a Contra Costa County Housing Trust Fund, A. Pwgram l-efinition. Inclusionary programs are intended to increase the supply of affordable housing in a jur ssdicctiion by.requiring that a specified percentage of residential units in new housing developments be affordable to lower income households. As an alternative, the majority of inclusionary programs in California permit the payment of a fee for each unit of market rate housing developed in lieu of construction of the affordable units. These fees are then typically used tosupport the development of affordable housing in other locations and projects: Policy Issues. Creation of an inclusionary housing program in Contra Costa. County will require resolution of the following policy isssues, 1. Definition of affordability and the target population; 2. Program threshold/minimum size development ` required" to.' comply with inclusionary requirements; 3. Percent of newly constructed units required-to be affordable; 4. Term of required affordability, including ,resale restrictions; 5. Design considerations; 6. In lieu fee option, 7. ,Additional alternatives'to the provision-of-affordable units, 8. Developer incentives and offsets. These policy issues and the range of alternatives employed by 48 California jurisdictions with an inclusionary program are summarized in Table I (page 6) and discussed in greater detail in Attachment C. evenue Potential The revenue potential of an inclusionary housing program in unincorporated Contra Costa County wilt depend on the definition of affordability, project threshold,percent of units required to be affordable, and the size of the in Lieu fee option chosen .for the program. Initial estimates . prepared by the Consultant for the Housing Trust Fund Task Force suggest that a'$1,000 per _ unit in lieu fee for single family homes would generate $1.6 million per year. These estimates are based on average annual single fain. housing production in the unincorpo A area of:ly6W units per year and the following assumptions; all units built are priced above the affordability target; all units built are in developments which exceed the program tlnrold .:and 1 develc�persA choses to a the fee lieu 40cwu+ding W ,ble:unitsMIM , , .... ,.:e.... ,.e-.vy,r protect,• - W aznnuaf�lis using productnon ev es ' portion of the new, units fall wiithin the affordability targets or are built in developments smaller than the program threshold, or some developers agree to 'build the required.affordable units rather than pay the fes, then the fee revenue from the inclusionary program may be significantly less. fi D, Tm�lementatron Authorily Implementation of an inclusionary housing program in the unincorporated area can be accomplished by action of the Board of Supervisors through amendments to the County'Zoning Ordinance. E. Itclusionaa Pm=w in Gontra Cos-ta Qunty. Although a.formal program has not been established, there is sante precedent for creation of an inclusionary housing program with an in lieu fee component in the unincorporated ares of Contra Costa County, The County required in the Development Agre ements'for two proposed single family residential projects in East County and one project in Central. County to contribute an in lieu tees of$3,333 for each market rate unit developed. The in lieu fees are tote deposited in a trust fund for use in expanding the supply of affordable housing in Contra Costa. if the County wishes to pursue this approach, it may be desirable to adopt a formal inclusionary .housing requirement to be applied to all future residential developments. : la addition to the County activity, a number of.Contra Costa cities including Clayton, Danville, Pleasant Hill,'and San Ramon, have expressed interested in establishing inclusionary programs. However,. the City of Richmond is the only jurisdiction in the County actually implementing an inclusionary program. The City has adopted specific policies with regard, to inclusionary requirements and is currently-considering a draft ordinance. Pending adoption of the ounce, the City intends to apply the inclusionary requirements to all new housing developments which meet specified criteria. Under the Riamond oroaram,.all new developments containing 10 or more residential units are required to fulfill one or more of the following inclusionary requirements. 1. a minimum of 15 percent of the total housing units must be affordable.to low. income households; 2. a minimum of 10 percent of the units must be affordable to very:Sow income households, 3. a minimum of 12.5 percent of the units must be affordable to a combination of low and very-low income households, or 4. a. minimum of 25 percent of the units in a senior housing project must be affordable to very-low or low-income households. Affordability requirements are recorded as deed restrictions on the property. Required terms of affordability are 10 years for rental units and 20 years for homeowner units. The resale price %F J of homeowner units during ;s period is limited to the original ac.,.iis tion',price adjusted for increases in area median income. As an option to the above inclusionary. —,n? ,-.its,.,4evelopers may.elect. 0.pro de a minimum of 15 percent of the units ki-ei tts nr prices affordable to moderate income households. In order to qualify for this option, developers trust show that compliance with requirements to provide units affordable to very-low and low-income households would render the project infeasible and agree to pay an in lieu fee for each inclusionary unit. The size of the in lieu fee is determined by formula and depends on the number of bedrooms in the unit`and the difference between the income of a household. at 120 percent of AMI (moderate income} and that of a household earning 80 percent of Alta (lower income). Currently, tate in lieu fee for a 3- bedroom home is $18,326 per unit. Assuming the inclusionary requirement for a project was 10 units, in lieu fees would total $183,260. In addition to the in lieu 'fee option, the Richmond program offers the following developer incentives and cuff-sets: density bonus of one additional unit fbr each inclusi6nary unit up to a maximum bonus f 25 percent over existing zoning; flexibility in development standards, including open space .requirements, landscaping, parking, and minimum lot size; consideration of mixed-use zoning to improve feasibility; assistance in obtaining federal or state subsidies, fee waivers, and fast-track processing. F. Modesto Hgussing Program The City of Modesto has adapted an equity share program for first time homebuyers in the Village One Specific Plan. Area. This program will be funded through fees paid by developers building single family homes in the specific plan area. A fee exemption for units affordable,to low-income households (defined as having less than 8W square feet)is similar to an inclusionary program in that it provides an incentive for developers to include affordable units in residential construction pro,Jects. Developers who build units larger than 800 square feet'will be required to pay a fee for each unit equal to $0.80 times the number of square feet in the unit over 800 (e.g., the fee on a 1,000 sq. ft. house would be $160, while the fee on a 3,000 sq. & house would be$1,760). This program differs from inclusionary programs in that fees are levied on all units which do not meet the City's definition of affordability. As an alternative to the fee payment, developers could.provide affordable housing, assuming it is equivalent lin scope and value to the housing assistance offered through the equity share program. .Following initiation of construction in the Village One area, fees paid by developers will be deposited in a Housing Trust Fund for use in providing assistance to low and moderate-income first-time homebuyers who are unable,to obtain adequate mortgage financing on their sawn. The program will provide silent second loans to pay for closing costs, a portion of the downpayment, or to finance the gap between the first mortgage and the homeowner's total financing needs. The interest rate on the silent second will equal prevailing rates at the time of the loan, with payment of principle and interest deferred to the sale or refinancing of the unit.'' In exchange for the loan assistance, the City receives an equity share in the property. Upon resale, the City is repaid the amount of the silent second plus accrued interest plus its share of unit appreciation. Loam repayments will be deposited in the Housing 'frust Fund for use in making'additional loans. ,,:k ,.I/��h G. Building nducrn, atm JOn Com,rrrtents cin 1nclt ion Staff met with Guy .Bjerke to discuss the views of the Building Industry Association on inclusionary housing programs. Mr. Bjerke stated that the Association is not ge"yin favor,., 'this` '+ f gri�gr -because,'!t plaices the burden of-d& abrdabl h , developers and buyers of new housing. The Building Industry. Association would prefer-an approach which woad provide a more equitable.distribution of the burden of ung Contra Costa'County's affordable housing needs. . ",rz i Attachment A ' ,y CONTRA COSTA COUNTY HOUSING TRUST FUND Housing Trust.Fund Task Force recommendations concerning an appropriate administrative and institutional structure for the Housing Trust Fund depend on the specifio revenue sources ultimately adopted. o County Only Revenue Source - If inclusionary funds from the unincorporated area represent the only revenue source, then the Task Force recommendsthat the Housing Trust Fund be controlled by the County. o Countywide Revenue Source - Alternatively, if the Housing Trust Fund also includes revenues from countywide sources (general obligation band, landfill tipping fee), then the Task Force recommends shared control of the Housing Trust Fund by Contra Costa cities and the County. Depending on the revenue source(s) ultimately approved for the Housing Trust Fund, the Task Force adopted the following recommendations concerning institutional structure: County Only RgMenue .'structure 1. The Housing Trust Fund should be controlled by the Board of Supervisors with an Advisory Berard. Housing Trust Fund Advisory Board responsibilities: a. develop policy recommendations and program criteria consistent with priorities established by the Board of Supervisors-; b. review project proposals and make funding decisions. 2. Advisory Beard recommendations on .major policy issues and the allocation of 1unds should be.forwarded to the Board of Supervisors for ratification by majority vete. 3. The Housing Trust Fund Advisory Board should consist of nine to eleven members appointed by the Board of Supervisors. Terms should run for three years, with no term limits. 4. The following factors should be considered in appointing Advisory Board members: a. knowledge and concern about affordable housing creeds in Contra Costa County; b. technical expertise in affordable housing development; C. representation of relevant interest groups and geographic areas; and d. sensitivity and commitment to affordable housing development, and the needs of low and moderate income households. Countywide Revenue„Structure 1. The Housing Trust Fund should be jointly controlled by Contra Costa Cities and the County. A Housing Trust Fund Authority composed of elected City and County officials l �: or their representatil should be established as a separate lef ' entity authorized to rnalCe decisions on Trust bund policies and project funding. 2. The Trust Fund Authority should be assisted by a Housing Trust Fund Advisory Board, The membership, structure, and.responsr`i3iliti es of the Advisory Board should be the same as these described under the county only revenue structure. 2 Attachment$ Correspondence From Cities Antioch Concord Martinez Walnut Creek r .y "4 co . ,y CITY HALL T"H` D - '. _. (510) 779--703o �01dt;fit , �•� 4�rp�, November 16, 1992, Mr. James Kennedy Deputy Director Redevelopment COMMUNITY DEVELOPMENT DEPARTMENT County Administration Building 4th Floor Martinez, CA 94553--0095 Dear Jim: The Antioch City Council on November 10, 1992 considered the recommendations of the Contra Costa County Housing Advisory Task Force regarding the creation of a . countywide Housing. Trust Fund. After review of the proposed alternative revenue sources the City Council expressed strong opposition to increasing tipping fees to. ' fund governmental and social programs that have no relationship to landfill operations. l have enclosed a copy of the proposed resolution to be considered by the City Council on November 24, 1992 . The City Council did endorse the concept of a general obligation bond as a countywide -source of revenue for affordable housing. If you have any questions, please do not hesitate to call. Sincerely, DOUGLA R. 'WARD Deputy Director Community Dev. DRW/j m 'CATV of Cx+.<+iaix - 1U.'441 Park.++ix'044%.. m, ++1i x • Ct n 4:t4t.•tiCtt t.`a[rrrCcer'e1.t..rlil..rx+.s!.i;t!+•;,+;•;;, x• - f.AX f tN !e..iN,.;i. bra t L«.sr..;�tuttrr rutrurr.l ire.`latvri, Osr-ict ur trrz 1t.ttt►re to+tt.-rtr t TIdt:Ptta+erc.CAM r;:1-:;t,`sr � �� �+ti#tj '.'l* v tt{trr ! t•' .ttti'.�t;ti _ November 19, 1992 trC' Ir Mr, Tim.Kznnedy DVuty Director » Redevelopment County, Administration Building , 651 Pine Street •-' 4th .Floor, North Wing Martinez, California 94553-0095 Tear iY2r. vaned: The City of Concord appreciates the o Trust .Fund Task Forcz Opportunity to comment on the ContraCosta Rousing �� and commendat ons. We are committed to the provision of affordable housing for all income fortunate, with carr Itedevci news Redevelopment Rousing Set Aside :funds, to haveius fcrr Proms and projects, we have atso w= advan new tage,time home buyers, and have actively promoted of County resources for t program w�the Ci c owe Revenue � and, g that other cities in the•COUnty have be%unable to a�i�rdable housing;gt,�, we commend the Co on, of funding available f� sttt� r� effort to iris e�sc the amount rr reviewing the- the ie P��d ravenue sours , we generall. thze Contin Costa; Mayors Conference .#hiss sentimatts voiced at issue general obi . girl TO s1 mt11a7RZer the proposal to bands will ultimately bis decided by the voters-and the Supervisors must decide whether or not to place such aro P Pow on-the.batlot•~ The Proposal afits� only County inclusionary zoning City of Concord, the htrrd l and would not 113mly be by the dramatic incr in � v,�� g r however, M�"� "cult to just*given the ratepayers have recrntiy %vsxl. As stated in the report, the administrative de structure of the Housing Trust Fuzed will ni n~d by the revenue sources. If the rust Fund is be sour,: of funding, the City of Concord would look forward with a decision making pr's .the distribut c n of those funds g a�hex`in the Thi You amain for informing us about this proposal and providing comment 1'Ve look forward to Workingwith you on this etfo and� �tY � establishing a new Ho YYOU succuss on Housing Trust Fund. Sincerely, Nance orc .Mayer .................... ...' _ City C _ Martinez 4 525 Henrietta Street. Martinez. CA 94553.2394 V to v t�+•t } November 17. 1942 � fJl Jim Kennedy Contra Costa County Community Development Department 651 Pine Street 4th Floor, North Sting Martinez, CA 94553 Bear Mr, Kennedy: As you have-requested, we have reviewed the Housing Trust Fund. Task Force Summary B.eport -and Recommendations. The City of Martinez has the following comments. The report is thorough and comprehensive, but Leaves several unanswered questions. Hov will the program be implemented? Still the Advisory Board take an active or a reactive role in the development of affordable housing? ' Still they just review and approve projects proposed to them or will they be actively proposing projects? If cities do not get credit for units built with the fees collected and they are not encouraging affordable housing within their city limits, :there would be no benefit to them taking part in the program. How will projects be selected? Vhat will be the selection criteria? Vhat level of involvement shall be required of the city? On page 14, paragraph 2 states that "use of revenue fees provided-through a city program should be referred to the City Council" for ratification. The funds from a bond: or-. frarzefilse dee would not be directly provided by a city Put would be collected generally from: the' residents. Vhat kinds of city programs is this referring to? Martinez; is very supportive of` -affordable housing, yet, there is little property left in Martinez for affordable units. Vhat areas remain for single family construction are hillside lots which are expensive to develop. Martinez has a 'large stock of .affordab;le .multi-family units and due to the lower land costs, our single family. developments tend to be more affordable.' * Presently, the City's energy has been directed toward rehabilitating the e=iztiug =its rather than the construction of new units. The report discusses attempting to include the cities in the inclusionary housing program. The price of new homes in the County is very high and we would have concerns regarding 'the additional fees which would be added to home construction costs driving the costs up for many first time home buyers and families already on limited budgets. Developers building homes in the mora modest price ranges are more likely to include affordable units. If in lieu fees were levied by the County, we would suggest they be on a eliding. scale relative to the cost of the home. In addition to the sliding scale fees, the City would recommend that you look at charging a fee comparable to the actual cost of building the affordable units. ,�y I T OF SAN RAIION TEL: 415-866--1435 Nov X0 .92 12:08 NO .003 $till Ramon �> Y. ... .. .. . .... . CITY OF SAN RAMON 1111,CAMaoKAMON P.O.W 5148 SA11 AAMO}1.CAIKMNIA 145413 (Stat 17WAO . FAX;iS i0!l417.4l38 November 30, 1992 Kathleen Hamm Senior Housing Planner Community ISevelopment Department Administration Building 651 Pine Street - ''. � ..it3�tt� `'• RECEIVED 4th Floor- North Wing Martinez, CA 94563 OEC (1 1992 Re: Contra Costa County Housing Trust Fund - office of Revenue Sources "�n =.nty Adrninistrat01 Dear Ms. Hamm: On November 24, 1992, the San Ramon City Council considered the County's proposal for a Housing Trost Fund, and made the following recommendations regarding the three potential revdnue sources presented by the Contra Costa County Blousing Trust Fund Task Force. Countywide General Obligation Bond: It was the consensus that a G.O. Bond presented the most viable option. The Council expressed support of a measure that would allow County residents the opportunity to vote their opinion regarding revenues for affordable housing. The Council also cautioned that current economic conditions may hinder the passage of G.O. Bond, and suggested waiting until such time that the regional oconomy Improves. in-lieu Housing Fees; The Council is reluctant to support an inclusionary housing program for a countywide Trust Fund, because the resulting in-lieu fees would likely generate an insignificant amount of revenues. Landfill Tipping Fees: The idea of raising tipping fees to construct affordable housing would receive no support from the City Council, now or In the future. Cllrc4"OPt f1J s$30 NiM"STALAIRC UAVI(VA-171111) to 4.(4. tMIISO (taC',srf}fwt,.ITS 4146 , CITY t+wrwi..s.3•S" }V.IK Ut"C11.1th..t04rwwwl 1.tdw Ci'rr v.*Ktt.1!1.114. CT}.Gt*+e T7at}10 IRM/IPO0Tn/t 5tiw♦++-.• O rr*.140 7tAawW+b;itt 1110 1 COH+un+ITr{4rttw. atrtitr...++1fYtiRY+.114.1!t0 NOU-30-1992 13:08 415 866 147A � (-'TTY OF SAN RAMON TEL= 415-866-1436 Nov 30,92 12.08 No .00:3- p .03 , :< =Xathloan Hamm November 30, 1992 Page 2 of 2 On behalf of the San Ramon City Council, I want to thank you for the opportunity to. review the proposals for a Housing Trust Fund, and hope that our comments are useful In assisting the County In Its future decisions regarding new revenue sources for affordable housing. Sincerely, Patricia Boom Mayor PB:DRlc5 16.92 NOtt--30-1992 13.98 415 866 1436 P.003 Op November 1.2, 2992 JJM Xmiedy Depa ` Director of .3:t _rzfi ata �nt star 652 Pirie Street 4th FiRcmth Win3 Martinez, CA -94553-oO95 sutmD=: aW.I & COSM ?:Y WMMjG Dear Mr. K+esir: the.Cz ty of Wa-b=t Creek would ! Ice to thank ;ym fcr the resew andt on the rq=tt of the CmIt, aCita Cb Trust � Task Force. We rid. accUntywide Q=ItY fcr its efforts to Ssrtig Trust the to ir�� awe c cPportrnities for the low and Z=Ierate �. Via: costa, . County. She City, ImIndi the C�rril Ott Potential revenue fuss Cm=it , r-+evi€omd all,tbred County �uSl g Trust end: general ,��tbp ��.�' dor the homing pry, and landfil.I �� b 0 , is usiona y r� both the inti Zee.. Tie City will support cbli bocci for the Co z ` hcx�s Viral c bl.� tion iM p'� az7d the sr pp t the l ily ming 'gust Fund. ��. the City Lisp=4,•costs in t't*v . �= fee. fib-- current solid waste ou� are albigh. - The Cfty believes that.. wilt. , this, f nan l b=13e z with ac ,t �'�i,. it, tipping.fees negative result. Walnut Creek has I3n%t—e3 land for large -develcPzentsf ba4ever, the Cf. . w� sum an �n� housing Proms to encxx the ion of affdrdbble ming f tar its Zca�- a�� residents. the City is also aam of the � Icde ate-jam. proval for: k carx3 ilia ding es is ,y in c�abtaining votar �=ett a xmic m-dit cnsr Comider3rg the basic spas City and the Yrn �g the� � antit general tim bond for a,fffatdabie homing it e reser available. is the. y P-0 f3ox 8039 4 1666 North Main Street ; Walnut Creak, eatifomi2 9459 (510, 943-5800 .,•�.?n., .+sa.............>.:..,r;u?,?;a:rn;?:r.?74d,:+2.?,);r+:...e..+,har.:..vNN.:.:r2,1�:,.,:�ary...>::A7,7NN+........3tNUp{SA;pt}O.iMOr�ta:y{h:,.r.w......,, Attatchmerit E CONTRA COSTA COUNTY HOUSING TRUST EUNO .TASK FORCE SUMMARY REPORT AND RECOM/i/lENDA TIONS June 1992 ,..oanae.. a:x>+>aqu:adaa<.:e.rtfaz�aua,�::..._u.,....vu,t::>:u:e......,...,.,.,..,..,,...,..............:a..•.... ai �' EXECUTIVE SUMMARY The Contra Costa County Board of Supervisors wishes to establish an Affordable Housing Trust Fund for purposes of increasing the-availability of affordable housing in Contra Costa. Priorities For the use of Housing Trust Fund revenues as defined by the Board include programs and projects which will provide increased homeownership opportunities for Contra Costa residents and empl6yees,and increase the availability of rental housing for very-low and low-income households. As an initial step in developing the Trust Fund, the Board created the Housing Trust.Fund Task Force and charged them with the following responsibilities 1. identify and evaluate alternative revenue sources for the initial capitalization and ongoing support of a Contra Costa County Housing Trust Fund; 2. identify and evaluate alternative institutional and operational structuress for the Trust Fund, and 3. Provide recommendations to the Board of Supervisors regarding these issues. I. ACTIVITIES OF THE TASK FORCE The Task Force gathered data and made policy decisions about what:revenues 'to utilize to finance Trust Fund activities, how to structure the Trust Fund, and what. next steps should be taken to implement Task Force recommendations. The Task Force was assisted in its efforts by a consulting team comprised of Keyser Marston Associates, Inc. (KMA), CGMS Incorporated, and Howard, Rice, N'emerovski, Canady, Robertson, & 'Falk. The-.consultants prepared a series of technical analyses to support the Task:Force's deliberations. The.Task'Force and consultants held a series of six workshops beginning. is'October 1991 'The workshops were as follows October 17, 1991 Discussion of Affordable Housing Trust Fund goals,.. initiation of consultant effort. December 12, 1991 . Initial presentation of first round analysis of revenue sources. January 16, 1992 Identification of six finalist revenue sources as'candidates For in--depth. analysis. Initial presentation of alternative administrative and institutional structure for the Housing Trust Fund. February 20, 1992 Presentation of legal context affecting use of revenue ` mechanisms, and in-depth analysis of the six finalist candidates. TaskForce voted to recommend adoption of three revenue sources. March 19, 1992 Discussion of alternative administrative structures, given Task Force adoption of revenue package. :Outline of Trust 1 r.} {'l Fund program issues. April 16, 1992 Adoption of a two-tiered approach to structuring• the Trust Fuad dependent on the revenues which finance fund activities. May.21, 1992 Discussion of operating and prograuai issues -which the Trust Fund Advisory Board will finale upon its appointment. June 18, 1992 Adoption of the final recommendations of.the Task Force. n. REVENUE SOURCES FOR. A HOUSING TRUST FUND A. First Please Evaluation Fifteen potential revenue sources for the Housing Trust Fund were evaluated.. Criteria for the first-round evaluation include the following. • Housing `.frust Fund revenues must represent a net new source* of funding for affordable housing development in Contra•Costa County, which can be used for,affordable housing. • The County must have the .legal authority to.utilize-a revenue:source for the Housing Trust.Fund. The-mechauism selected must generate'sufficient revenues to support ~ . a reasonable Level of affordable housing development. -The talk•or.fee.burden resulting from the collection of revenues-should be progressive (meaning the burden should In, with•income, -or . ability to :pray); aiid should not ulifairly burden.specr3fic economic . sectors or-segments of the.population. Exhibit B (page 30) shows.the sources eliminated from future analysis on the basis . -of the-first,:phase -evaluation, and the rationale for their elimination. B. Second Phase Evaluation Six revenue.mechanis-ms =were identified as having potential for financing a Trust Fund: These.p:otential sources-are shown in Exhibit A (page 23). The evaluation. criteria for,the.consultants' in-depth analysis of the six finalist.sources were -as follows • The amount and variability of the potential revenues generated•. Where the financial burden of the funding source is borne, the degree of progressivity, and the degree of impact of the tax or fee on the affected parties. • The requirements and costs to_collect, monitor, and administer .the revenuesource. This includes an assessment of staffing requirements. 2 '.f ...., ...... . ........ ........ . ... . . ..-.. . .... ...,....., ......-...., .. ........., ., .,..... ....,.,.,.;>:::>bab •:bra. t >Yi and skills needed. • An examination of the legal requirements for use of the mechanism, including meed for legislative authority, voter approval, or nexus demonstration. • Outline of the necessary implementation steps to utilize the mechanism. • Issues related to involvement of the cities as well as the County in adopting or administering the revenue source. C. Task Farce Recommendations Regarding Revenue Sources In making.its deliberations the Task Force acknowledged that: 1. There are few revenue options available to finance a Housing Trust Fund for Contra Costa -County, and each alternative will impose a burden on some segment of the population or business community. Given the County's current budget constraints and its vigorous effort's to utilize available resources to finance general-government activities; there.are a Limited number of opportunities to tap net new sources of revenues for•the county to support an Affordable Housing Trust.Fund. These opportunities are further constrained by the legallimitations on raising revenues. in a General Law County in the post-Proposition 13 era:, as described in Appendix A. 2. Approval .of the electorate is required for most. of 'the revenue * . alternatives available to.the Housing Trust.Fund. - Kinkage tees,and Inclusionary Housing are the only options which clearly do not ve:quire . ,a vote of the people for adoption. The authority to impose additional franchise fees on -solid waste exists only within. the -development entitlement process or.as part of a fraurlise agreement. To tlxe extent that the County currently receives unrestricted.franchise fee monies, the. County,,at its-sole discretion, could choose-to allocate those.fees (or Tiny other source-of County revenue) to the Housing Trust Fund.' The-Task Force.is.aware of the difficulty of gaining voter approval for tax ballot measures• and in particular. the extremely low first-time passage rate of measures requiring a two-thirds voter. majority. However, it has been noted that some of the recent ballot treasures have eventually been approved on the second or third try. 3. Most of the resource alternatives available to the Trust.Fund generate revenues solely from the-unincorporated area of the county. -The only. sources that can generate funds on a county-wide basis are,the general obligation bond, and the franchise fee on solid waste. After reviewing these issues, the Task Force recommended adoption of the following revenue sources for the Housing Trust Fund: inolusionary zoning with an in lieu fee component; solid waste tipping fee; and general obligation band. 3 The rationale for adoption, of the three mechanisms is described below: Inclusionary Zoning Will provide significant numbers of :new affordable �N housing, either as a percent of new construction within the County's jurisdiction or through payment of in--lieu fees. Will formalize an existing policy now applied to large scale properties seeking negotiated Development Agreements. Solid Waste Tipping Will provide substantial revenues from a county-- Fee wide revenue base. However, the Impact on each rate payer is small; an average household might pay as little as $5 ,per year for a fee which raises $800,000 per year. General Obligation Will provide a large, one time source of revenues. Bond A $56 million bond would cost $20 per year for-the average home with an assessed value of $200,000. Voter approval is clearly required. The flask Force's rationale for elimination of finalist revenue sources were as follows Housing Linkage Fees The revenue potential from the unincorporated area is limited, andd the expense and effort required to design, gain support for, and institute a linkage fee would outweigh the revenue potential. There are also competitive issues raised by establishing a linkage fee program in the unincorporated area only. Document Transfer Tax County currently collecting legally permitted maximum rate. -Rate increase*would require new state legislation- and a 'judicial finding that Proposition 62 is unconstitutional. Therefore, does not appear to be a legally° feasible option. Utility User Tax Passage of the tax was judged 't.o be politically infeasible, given the regressivity and unpopularity of the tax. III. ADMINISTRATIVE STRUCTURES BASED ON REVENUE SOURCES A. Initial Administrative Structure Evaluation Five administrative structure options were-presented to the Task Force. Each had, five essential-characteristics to be considered • Composition, which refers to the representative make up of-the Housing Trust Fund Board in terms of interest groups, areas of expertise and geographic distribution. 4 Size, which refers to the number of members of the Housing Trust Fund Board. • initial Appointing Authority, which refers to the body that appoints the Housing Trust Fund Board. Perpetuation Method, which refers to the method in which vacancies on the Trust Fund Board would be filled. Decision.Making Authority, which refers.to whether the Housing Trust Fund Board has final decision making authority or is advisory to another body who mares the final decisions. The five administrative structure options were described with a summary of their positive and negative characteristics (see Appendix b). Based on the initial evaluation of the five administrative options, two potential . administrative structures were presented for,the second evaluation. They y ue affecting choice between these-o tions is i hether revenue.is generated.from the Conn unincorporated area only or is drawn from the cities as well. Thus, .one ,. option included representatives from the cities in the decision making and the other did not. B. Task Force Recommendations - Administrative and Operational;Strueture The Task Force recommendations concerning, an• appropriate .instftutiOnal And administrative structure for the Housing Trust Fund depend,in part,on the specific revenue sources ultimately adopted.. If inclusionary zoning in lieu fees from the unincorporated area of the County represent the only revenue source, then the Task Force recommends that the Housing Trust Fund be controlled by. the County. Alternatively, H the Housing Trust Fund also . includes. revenues:.from.-the recommended countywide sources (general obligation •bonds, and/or .solid`waste - franchise fees), then the Task Force. recommends ah'ared control of the Housing Trust Fund. by Contra Costa cities and the County. The latter recommendation is based on a recognition that if revenues are contributed by the cities, then the cities will want and should have a role in determining how those revenues are utilized. In addition, active support of the cities will be needed to ensure passage of the ballot measures required to enact the countywide revenue source-. • In prder to elicit their support, it is likely that the cities will require a role in decisions concerning Housing Trust Fund activities. County- Only Structure As the County has the fiduciary responsibility.. for.the Housing Trust Fund, .and*. would be the legal lender of the Housing Trust Funds-to any .recipient; the.Task Force recommended that the Board.of Supervisors should be the final decision maker in the County Only structure.. However, rather than require that.each Housing Trust Fund Advisory Board decision.be reviewed and.acted upon by ;the Board of Supervisors, the Task Force recommended that apirocess.be used whereby the Board - 5 of Supervisors would ratify the decisions of the Housing Trust Fund Advisory Board by a majority vote of the Board. Decision MV kin: Authority The Housing Trust Fund Advisory Burd should develop policy recommendations, adopt program criteria, review project proposals and make all funding decisions {such as which projects to fund, the amount of_each . award., and the conditions under which funds would be loaned}, consistent with overall priorities established by the Board•of Supervisors. The decisions of the Housing Trust Fund Advisory Board would be forwarded to the Board of Supervisors for ratification by majority vote. Corrt�ositiart The Board.of Supervisors*will be responsible for appointing,an. Advisory d:representing epresenting a broad spectrum of interests and abilities. Factors to be• considered should include: knowledge of and concern for affordable housing, technical expertise,.representation of relevant-interest groups andzensitivi.ty: to needs and Coneerns of low income housing.consumers. Initial A'ppgirz�.tin Authority The Board of Supervisors should make the initial appointments to the Housing 'T'rust-F'ut d Advisory Burd. Terms on .the Housfng,Trust Fund.Ai'dvisory' Board.should run.for three years Initially staggered,terms woul4..allow-f'or program continuity. Perpetuation* Method The.Housing Trust Fund Advisory Board should.submit.for.:approval-.to-the. Boardof Supervisors.names'of possible replacements-to.fill vacancies which .: occur on the Housing Trust Fund Advisory Bodrd.'-:Reappointments -win:be. possible. size The Housing.Trust Fund. Advisory Board should consist of nine to eleven . members. Countywide Structure'' In order.ta gain the'support of the cities in raising Housing T-rust.Fund dollars,.the: ' Task Force recognized that the cities would need to have a meaningful role .fn:the = decision making process.-. Therefore, the Task Force unanimously reconend d that cities should be-iavol�,ed as equal partners with the.County ff.revenua sources for the Housing Trust Fu.nd4ncluded funds drawn from cities. -Clearly, a seat'for-eaoh• . city in the County would create an administratively unwieldy,body; so the.�T.ask. Force °looked to +existing. models whereby the cities-and the.County.jointly. 'make . ' decisions for specific xesdgrces. For example, the Transportation Authority�model, like the. Housing Trust Fund, administers funds generated tfrom a . untywide . resource (a- soles tax). The members of the Authority would be appointed-.by the 6 4r. cities sand the County. The Housing Trust Fund Authority that would be created would have all the powers anal responsibilities ;that the Board of Supervisors has under the County. Only structure.. Assignment of decision making responsibility for the allocation of countywide revenue sources will require that the Board of Supervisors, at its.sole discretion, vote to contract with the Authority Board for this purpose. The contract may include specific conditions required to ensure fulfillment of the Board's fiduciary responsibility for countywide revenues. The Task. Force felt that, in addition to representation by the cities in the decision making process, it was critical to duplicate for the Countywide structure the broad- based representation of the Housing Trust Fund Advisory Board established for.the `County Only model. Therefore, the Task Force recommended the composition of the Housing Trust-Fund Advisory Board be the same for both structures. Also, for efficiency and effectiveness reasons, it trade the same recommendations with respect to terms, term limits and size for both the County Only and the Countywide models. The flask Force wanted.to ensure that projects could be processed efficiently and that local funding decisions would.not unnecessarily delay funding commitments from other governmental and private resources. Therefore, the Task Force recommended that the ratifcation.process proposed for the Countywide structure be the-same as that proposed for the County Only structure, substituting the Housing Trust fund Authority for the ,Board of Supervisors. Trust Fund.decisions concerning the use .. of inclusionary housing-in-lieu fees would be an exception to thisdecisionmaking. process. Tho Task Force recommended that decisions concerning the.use of these re'pvenues be subject to ratification:by the jurisdiction(County or cities) contributing the fees. 7 HOUSING TRUST FUND TASK FORCE Sunne'Wright McPeak Carol Galante Contra Costa County BRIDGE Housing Corporation Board of Supervisors Susan Jackson Tom Powers IMCO Realty Services Contra Costa County Board of Supervisors Lynn Osborn League of Women Voters Ralph Petty Contra Costa Mayors Conference Steve Roberti Central Labor Council Beverly McDowell Contra Costa Mayors Conference Merlin Wedepohl Shelter, Inc. Gayle Uilkema Contra Costa Mayors Conference Rosemary Tumbaga Pittsburg Economic and Housing Barbara Johnson Development Corporation Congressman George Miller Ralph Copperman Gary Hanes Advisory Council on Aging U.S. Department of Housing and Urban Development Paul J. Schulze Greater Richmond Interfaith Program Cathy Creswell California Department of Housing Frank Zamora and Community Development Central Labor Council Perfecto Villarreal Nikki Mazaisz Housing Authority of Contra.Costa Wells Fargo Bank Guy Bjerke Bob Summers Building Industry Association Chevron USA Darlene Houk Richard Lujan Contra Costa Board of Realtors United Council of Spanish Speaking Organizations Merle Gilliland Contra Costa Council Carol Severin Satellite Senior Homes Miye A. Goishi Contra Costa Legal Services Staff: Sal Spataro Jim Kennedy Building&Construction Trades Kathleen Hamm Council Contra Costa County Community Rolf Pendall Development Department Bay Area Council C AI`/ CONTRA COSTA COUNTY COMMUNITY DEVELOPMENT DEPARTMENT DATE: December 4, 1998 TO: Internal Operations Committee • Supervisor Donna Gerber • Supervi m Rogers FROM: J' Y. e Director-Redevelopment SUBJECT: Incenti or Affordable Housing/Infill Development I. Findings: The Internal Operations Committee has been discussing a wide variety of urban development strategies that include the delivery of affordable housing. This discussion is a derivative of a referral from the Board of Supervisors in April of 1997 in which an inclusionary housing program was suggested (Attachment A). In its review, the committee has made findings related to affordable housing inclusionary programs,and transportation/land use issues based on available data and input. A. Affordable Housing Needs(Attachment B): • Over 110,000 households of the County's 315,000 households experience one or more housing needs, i.e. overpay for housing, live in over-crowded conditions, or live in substandard conditions. • The type of affordable housing most in need is for very-low income and extremely-low income households (50%of median income or less and 30% of median income or less respectively). • Recent reports from the Health Department and the Community Development Department regarding long-term strategies to prevent homelessness substantiate that housing is particularly needed at the very low income levels. • Many developments being undertaken by the private sector without financial assistance provide moderate income housing, especially in west and east County. These projects may include new construction or acquisition and/or rehabilitation of existing housing. In limited areas (far East County), the private sector delivers housing affordable to low income households. • An inclusionary housing program with an in-lieu fee component would likely generate few units and little revenue for the following reasons: ......... ......... ......... ............... ........... ......... ......... ......... ......... ......... ......... ......... ......_.. . ....................................................................................................................................................... .................................................................... TO. Internal Operations Committee -2- December 4, 1998 1. Housing developments with vesting tentative maps or approved development agreements would not be subject to the requirement (CDD advises that almost all housing development occurring in the unincorporated area are covered by approved vesting tentative maps or development agreements); 2. Inclusionary programs generally exempt smaller projects, which would reduce the number of units to which such a program would apply; 3. Over a third of the housing growth in the unincorporated County has occurred in the boundaries of the recently incorporated city of Oakley, and would not be subject to a County requirement; 4. A County inclusionary ordinance would apply only in the unincorporated County, whereas most of the; housing growth is occurring in cities. 5. Some new housing being built is affordable at market rents and prices to targeted group,and therefore would not be subject to an in-lieu fee requirement; 6. The County's Community Development Department has been successful in leveraging financial resources to deliver affordable housing to very-low,low and moderate income households;however, the magnitude of funds available is insufficient to fully address identified needs. This lack of funding is the essence of the problem in delivering affordable housing. B. Infill/Smart Growth Strategies • Infill strategies represent a resource for the provision of housing (see Attachment C). • "Smart Growth" strategies are being discussed at the local, regional, state, and national levels. These principles provide a framework for dealing with growth issues in a manner which will enhance housing diversity, environmental quality, and economic development(seeAttachments D and E). • Mechanisms that promote smart growth and infill strategies are being employed in limited settings in the County, and may warrant expanded use, including: 3171- ........ _........ ......... ......... _ .. ......... . ._....... ......... ......... ......... ......... ......... _. ......... ......... ......... ......... ......... ......... ......... ..................................................................................................... A, TO: Internal Operations Committee -3- December 4, 1998 a. P-1 rezoning of entire communities cann facilitate growth in infill settings. For example, the North Richmond community-wide P-1 rezoning program includes detailed design/development standards that allow conforming projects to proceed expeditiously. Area-wide P-1 rezoning programs are programmed for Oakley, Bay Point, and Rodeo as implementation of Specific Plans/Redevelopment programs. b. The County could evaluate and review allowable densities in areas suitable for infill development to avoid underutlization of land. C. Encouraging mixed use development promotes sustainable communities with more services in close proximity to residents. The Pleasant Hill BART Station Area,the proposed Bay Point/Pittsburg BART Station Area Specific Plan,the Oakley,Rodeo,and Dougherty Valley Specific Plans provide for mixed use 'development. The community of Crockett is an example of an historical community that developed as mixed use. d. The CalWorks(Welfare-to-work)initiative has illustrated the lack of congruence between jobs and the lower income population. Bringing jobs and affordable housing into closer proximity is part of the larger workforce development/economic development challenge that CalWorks brings to the County. C. Transportation/Land Use Connection • Traffic congestion has become one of the most challenging and vexing public policy issues. The following conditions exist and contribute to the problem: • Automobile ownership is growing faster than population or jobs; • Commute patterns are becoming increasingly complex and difficult to serve by transit; • Investment in new roads is yielding diminishing returns; • Environmental/neighborhood concerns make the siting of new transportation facilities and increased densities problematic; • The cost of needed transportation facilities significantly exceeds available funding. .................................... TO: Internal Operations Committee 4- December 4, 1998 In response to these challenges, a variety of alternative land use designs have been proposed to reduce urban sprawl, make more efficient use of transportation and infrastructure systems and generally enhance the livability of our communities. These strategies share the common goal of making our communities more environmentally sound and accessible within the current financial, physical and environmental limits. These approaches for creating more livable communities include the following principles: • Opportunities for housing,jobs, shopping, recreation and civic uses should be integrated into community plans; • Size and arrange communities so that jobs,housing and other uses are within walking distance of transit stops and each other; • Provide for a well-connected circulation system for pedestrians and bicyclists and organize land uses so they can be served by transit; • Provide for community centers and an ample supply' of greenspacelpark space; • Accommodate natural areas in community design; • Organize the regional network of urban places around a regional system of transit that provide a convenient alternative to congested freeways; • Locate regional institutions and services within urban centers; • Avoid piecemeal development on the urban fringe and encourage infill development at higher densities,and redevelopment strategies. A number of initiatives have been proposed that would embody these "Smart Growth" principles. The California Futures Network and the California Local Government Commission Smart Growth principles are included as Attachment D. The Bay Area Alliance for Sustainable Development is a regional effort involving the Bay Area Council, ABAG, Environmental Community and the Social Equity Community in an effort to develop a Bay Area strategy for sustainable development (Attachment E). Ii. Committee Recommendations A. Measure C Renewal - Sustainable Communities Strategy ......... ......... ..........._... .......... __....._. ......... ......... ......... ......... .... ..._. _........ ......... ......... ......... ......... ......... ......... . ........................................................................................................................ .. t TO: Internal Operations Committee •5- December 4, 1998 The Internal Operations Committee concluded that the County's goals of increasing affordable housing and providing more-sustainable communities are both.achievable. To accomplish both, a comprehensive set of policies that work together to provide incentives and funding for smart development, infill development, affordable housing, and redevelopment is required. A major challenge is locating a funding source to augment existing affordable housing finance initiatives. In 1992,the Board of Supervisors received a report from its Housing Trust Fund Task Force. This task force dict an extensive evaluation of new affordable housing funding sources. While the recommendations were not implemented due to the deep recession that set in the early 1990's, the discussion and recommendations are still ;relevant today (see Attachment F). The Trust Fund Task Force suggested that a major source of potential funding for affordable housing would be through a County-wide general obligation bond program. Because of the 2/3 voter approval required, this mechanism does not appear to be politically feasible. The Measure C Transportation Funding Program included previsions for growth management. The programming of proceeds from the '/2 cent sales tax measure authorized by the voters requires that local jurisdictions ;incorporate growth management strategies. These growth-management efforts have only been marginally successful. The Measure C Program will be up for renewal in 2008. A continued need to invest in transportation infrastructure is expected to exist. A number of organizations, including the Contra Costa Council and the Contra Costa Economic Partnership have formulated visions for the renewal sof Measure C. THE INTERNAL OPERATIONS COMMITTEE HAS RECOMMENDED that a vision for any renewal of Measure C incorporate funding for affordable housing, open space, and smart growth initiatives/projects, along with the funding of road improvement projects that accommodate planned growth. This paradigm may provide for the sustainable communities originally envisioned. The County,utilizing its review of the General Plan,may be in a position of leadership on this topic. B. Referrals to the Ad-Hoc Committee The following additional items are referred to the Ad-Hoc committee on the General Plan: 1. Smart Growth Principles 2. Measure C Renewal with the inclusion of affordable housing finance and park/open space projects 3. Permit streamlining via a County-wide P-1 rezoning program within the urban limit line TO; Internal Operations Committee -6- December 4, 1998 4. Reviewing minimum allowable densities for residential projects in appropriate areas(transit hubs, higher density land use areas,near services, etc.) 5. Infill/redevelopment/mixed-use strategies 6. Work force development/economic development C. Endorse the Smart Growth principles of the California Futures Network and the California Local Government Commission. D. Continue to support and work with the Bay Area Alliance for Sustainable Development/the Bay Area Council/ABAG in the development of sustainable development principles for the region. E. Endorse the inclusion of affordable units in CDBG/HOME-financed projects targeted to extremely low income households,subject to financial constraints and local policy issues. JKahh 09981io.mem f To: BOARD OF SUPERVISORS fes= , •�=;. .� " SUPERVISOR JIM ROGERS Contra �'' 1 ofy. BATE April 1. 1997 �����' i�Y itJII,iEC7; ESTABL,ISI"I COt,I'NT1f PCIL,#+CIES TO REQUIRE DEVELOPERS To PROVIDE AFFORDABLE HOUSING OR Tt� PAY AN IN-IM#EU FEE FOR INSTRUCTION mocomm ION OF NIGH Dr=NSITY HOUSING AT BART STATIONS tPrMclFic RECUEsr(s�oe itt<iroaMaalArw>vt(�t a w� �Isamr�ATlaN A. REQUEST that the Con'munity Develo Board of lit t3irector prepare a report for the Visors with'the following Information. 1. Previous history of Development Agreements that had aff+xdable housin required an � �'• . `k g component and an assessment of the,effect cif'this requirement on the marketability of homes. r� 2. valuate tf�1992 Re -:• ��:..� ;. . . p�Recom mendatlOns of the Housing Trust Ft Ind Task Force in view of current circumstances,Including: " SM; ' a. Trust Fund Revenue Sources b- Institutional and operational Issues '' <' C. Issues needing reassessment 3. Identification of steps that n gust betaken to amend the County General Plan and#o plae;e into County ordinance the following requirements that d lan and P4S would be required tofollow projects. proposing housing I'RIEO I"ATTACHMEHrt —YFA .�RECOMMEROATfon OF COtHYi`Y .5'p --A"£ONE ----RECOMMEPtOAT1OH OF S COMM m MA 300 OF SOARO ON .�--Y AMM&M AS"Goll(ME1(OEO, I OTHER x PLEASE SEE ADDENDUM (Attached) FOR A LIST OF SPEAKERS AND FURTHER BOARD ACTION. 1 OF SUPERVISORS -UNA-i1OU$(ASSENr Y I HERESY CERr(FY THAT THIS a A TRUE AYES: NOESr AND CORRECT COPY OF AN AN TAKEN . ABSENT- A9SrAlH: AHO ENTERFA ON THE MINUTES OF THE SOA1* OF SUPERVISOAS ON THE GATE SHOWN, County Adminis"tor Director.GM DA MEMO ril 1. 1997 Community Development Director PH ELOk CLERK OF THE 8oAA0 f County Counsel sons Atte o s TIF [nternai ilperat{Ons ++ittie (via GAO iiayars' Conference (via G(£>a ) ('"'City County Relations (via COo) SY ......... ......... ......... ...._.._. . _. ............... ......... ......... ......... ......... .._........... ... ......... ......... ......... ......... ......... ......._. ................................................................................................................. ...._.._.................................... ion#1 Require developers to propose units of affordable housing based on Dougherty Valley model,i.e.,develop 25%of total units In affordable housing according to the following ratios: 16%o affordable to very low Income families 25%affordable to low income families 65%affordable to moderate income families,or O tip on#2 pay in-lieu fees to a Mass Transit-oriented Housing Trust Fund which would be established by the County to subsidize affordable high density housing near BART stations In Contra Costa County,or S2Rftgn. -Some combination of Option#1 and Option#2. 4. Recommend threshold size of housing development In which these would be required. 5. Recommend provisions to ensure that County General Plan policies will be sensitive to concems of adjacent cities. 6. Recommend process to setup Mass Transit-Oriented Housing Trust Fund. 7, Identify revenue source to cover the costs of undertaking the above. B. REQUEST that the County Counsel propose language for ordinance{s}that would effect these changes. C. REQUEST that this report be forwarded to the Internal Operations Committee In approximately 90 days. AE CKGROUN©REASONS FOR RECOMMENDATIONS: This will ensure that the Board's goals of supporting affordable housing and mass- transit based housing will actually be accomplished, Given the decrease In federal and state funding In this area, the County should ensure that new development Helps meet this pressing need. In addition, Measure C,the half-cent sales tax, passed by the voters in 1988, and administered by the Contra Costa Transportation Authority,requires that jurisdictions work toward jobs-housing balances with the purpose of reducing traffic congestion. Housing advocates support a mix of housing In all areas and encourage development which ensure access to those who do not drive. -2- h ita CONTRA COSTA COUNTY COMMUNITY DEVELOPMENT DEPARTMENT DATE: July 31, 1998 TO: Internal Operations Committee Supervisor Donna Gerber Supervisor Jim Rogers FROM: Jim Kennedy, Deputy Director - Redevelopment By: Kathleen K. Hamm, Principal Planner - Housing w*'' 46-�� SUBJECT: Report on Additional Issues - Proposed County Policies to Require Developers to Provide Affordable Housing On March 27, 1998, the Community Development Department provided a report to the Internal Operations Committee (IOC) on proposed County policies to require developers to provide affordable housing or pay an in-lieu fee for affordable housing development.i At that meeting, additional issues were raised concerning the definition and need for affordable housing in the County, inclusionary housing policies of Contra Costa jurisdictions, the revenue raising potential of an in-lieu 'fee program, the estimated cost of a nexus study as required for adoption of an inclusionary ordinance, and the feasibility of imposing a fee on industrial and commercial development in addition to housing development. The following information is provided in response to these issues. SUMMARY o Based on the County's Affordable Housing Plans, there are over 110,000 households in Contra Costa.County in need of housing assistance to alleviate problems;of overcrowding, a lack of affordability and/or structural conditions. o Affordable housing programs are targeted to very-low, low and moderate income households. In Contra Costa County, a very-low income household is defined as a household with an annual income of less than $31,650, a low-income household has an income of less than $45,300; and a moderate income household has an income of less than $75,950. o Very-low income households would require a subsidy ranging from $60 to over$100 per month to rent an average priced apartment in Contra Costa. Very-low, law, and moderate income households would require a subsidy of over $100,000 to acquire the average priced home in the County. o Only one Contra Costa City has an inclusionary housing ordinance, while three Cities have adopted inclusionary policies within the context of their Housing Elements. In addition, State Redevelopment law requires that a portion of the housing development occurring in redevelopment areas must be affordable to low and moderate income households. In addition to the County, fifteen of the eighteen Cities have designated redevelopment areas. o The revenue potential of an inclusionary housing program with an in lieu fee component depends on a. the level of housing construction in the unincorporated area, b. affordable price requirements, and C. the amount of the in lieu fee in comparison with the cost of developing the affordable housing. Estimates based on County housing development trends and characteristics indicate an inclusionary housing program with an in lieu fee would generate annual revenues in the range of$130,000 to $325,000. j o A study to identify the nexus between an identified legitimate government interest and the requirements which would be imposed by a County ordinance implementing an inclusionary housing program with an in lieu fee must be performed prior to implementation of the ordinance. The estimated cost of a nexus study ranges from $15,000 to over $100,000. o The County could chose to adopt an ordinance to impose an affordable housing fee on commercial and industrial development based on the impact of such development on the need for affordable housing. This ordinance could be in addition to or in place of an inclusionary housing program. In order to support such an ordinance, an analysis would have to be prepared to establish a nexus between an identified government interest and the requirements which would be imposed by the ordinance. In addition, the study would have to establish a reasonable, quantifiable relationship between the proposed fee and the need for additional affordable housing created by the commercial/industrial development. a Jurisdictions which currently have an ordinance and program to impose a development fee on commercial and industrial development include Pleasanton, Sacramento, and San Francisco. Since it's inception, PleasantoWs program has generated approximately $600,000 per year for affordable housing, and San Francisco's program has generated an estimated $540,000 per year. A more detailed discussion of these issues is contained in Sections I through VII of this report. RECOMMENDATION The April 1, 1997 referral to the Internal Operations Committee requested that a report be prepared for the Board of Supervisors to consider regarding inclusionary housing. To date, the 2 ���3 .............. ......... ......... ......... ......... ......_.. ............. ......... ......... ......... ......... ......... ......... ......... ......._. _ ................................................................................................................................................... .. .............................................................................. Internal Operations Committee has: A. limited the scope of the current analysis to the more general inclusionary housing program with an in-lieu fee for affordable housing rather than the original proposal of in-lieu fees for mass transit housing due to a determination that a General Plan Amendment would be required for the latter approach, and B. received a subsequent report from the Community Development Department further defining affordable housing needs in the County, and estimating the revenue generation capacity of an in-lieu fee component applied to the unincorporated County. Staff recommends that the Internal Operations Committee report out its findings and/or recommendations at this time in order to receive further direction from the full Board. ISSUE DISCUSSION I. Estimate of Affordable Housing Needs in County Based on the County's Consolidated Plan for Affordable Housing and related data', there are over 110,000 households in Contra Costa County in need of housing assistance to alleviate one or more housing problems, including overcrowding, a lack of affordability, and/or structural problems (e.g., lack of kitchen, bathroom). Of the total, over a third are cost-burdened (paying more than 30 percent of gross monthly income for rent). The incidence of housing need among renters is highest: in 1990, half of all renter households and one-third of all homeowner households experienced some type of housing problem. As expected, housing problems are the most severe for the County's extremely-low and very-low income households. Well over 80 percent of renter households with incomes below 50 percent of the area median were experiencing housing problems in 1990 and half of all renter households in this income category were paying more than 50 percent of their income for housing. Among very-low income owner- occupant households, half had one or more housing problems and over one-third paid more than 50 percent of their income for housing.' Il. Definitions of Affordability and Subsidy Requirements Affordable housing programs are typically targeted to very-low, low, and moderate income households. o Very-low income households are defined as households with incomes at or below 50 1 Includes data for all of Contra County (unincorporated area and 18 cities). Data is from the 1990 Census and is the latest comprehensive information available. While the County has experienced growth in housing and income during the 1990's, given increases in population and the cost of housing, the magnitude of need is most likely undiminished. 3 ;F. r percent of the Area Median Income (AMI) for Contra Costa County adjusted for household size ($31,650 per year for a four-person household). o Love-income households are defined as households with incomes at or below 80 percent of the AMI adjusted for household size ($45,300 per year/four-person household). o Moderate income households are defined as households with incomes at or below 120 percent of the AMI adjusted for household size($75,950 per year/four person household). Attachment A provides maximum income levels as well as maximum rents and housing prices affordable at each level of income. Using a four-person household as an example. o A very-low income household could afford to pay a maximum rent including utilities of $791 per month or could purchase a Dome valued at $104,700. Based on average rents and housing prices, this household would require a rent subsidy of$60 to$100 per month for rent; and more than $140,004 to purchase a home. o A low-income household could afford a maximum rent of$1,133 and would not require a subsidy, assuming an apartment at the average rent level of $851 is available. This same household would require a subsidy of$94,000 to purchase an average priced home. o Moderate income households would not require a rent subsidy or homebuyer subsidy to purchase housing priced at average levels. Housing prices vary significantly across the County. In South Centrad Contra Costa, the median price of homes sold in 1997 was $299,000 - a price which renders housing in this area unaffordable to all but a few households in the moderate income category. in Western Contra Costa, the average price of homes sold was $171,350 - a price which is considered affordable only to moderate and some larger low-income households. Finally, in East Contra Costa., the median price of homes sold was$128,400. Housing in this area is affordable at the moderate and low-income level,but not to the majority of very-low income households. Comparative regional data is not currently available for rents. Based on the County's experience in financing affordable housing in Contra Costa over the last two years, the Fallowing are representative per unit subsidy requirements for affordable housing development in Contra Costa. o Public subsidy requirements for the new construction of single family >homes affordable to very-law income households range from$40,000 per unit to$95,000 per unit, including 3A four-person household would require a three-bedroom apartment in order to avoid an overcrowded situation. Rents for three-bedroom apartments in many areas of the County are currently more than $1,100 per mouth, indicating a subsidy requirement of over $300. 4 j'y it `J $12,004 to $27,404 in County resources'. o Subsidies provided for the development of multifamily housing for very-low income households range from $30,004 to $70,004 per affordable unit, including $7,000 to $34,000 in County funds. IIT. Contra Costa Cities with Inclusionary Housing Ordinances or Policies Contra Costa Cities with inclusionary housing ordinances or policies are listed in Attachment B. As shown in the attachment, Danville is the only City in Centra Costa County which currently has an inclusionary housing ordinance with an in lieu fee component. The goal of the Danville program is for each development over 8 units to include a minimum of 10 percent of the units to be affordable to low/moderate income households. The following Cities have approved Housing Elements with an inclusionary policy. Hercules; Pinole, and Richmond. According to the policy adopted by Hercules,developers must ensure that 10 percent of housing units in a development are affordable to low and >moderate income households or pay an in lieu fee. Pinole's inclusionary requirement is limited to the City's redevelopment area, while Richmond's inclusionary policy encourages developers to voluntarily make 15 percent of units developed affordable. In addition to the Danville ordinance and City policies, State law requires that IS percent of the housing units developed or rehabilitated in a redevelopment area by public and private entities must be affordable to low and moderate income persons. Of that 15 percent; 40 percent must be affordable to low income households. If an Agency is developing housing, then 30 percent of the units produced must be affordable to low and moderate income households. Of that 30 percent, 50 percent must be affordable to low income households. In addition to the County's five Redevelopment Areas, fifteen cities in Contra Costa County have Redevelopment Areas to which this requirement applies. IV. Revenues gengrated by Inclusion= Pro ram with In Lieu Pee Com anent The revenue potential of an inclusionary housing program depends on. o the level of housing construction in the unincorporated area, o affordable price requirements, and o the amount of the in lieu fee requirement. Projects which meet the affordable definition would not be subject to the fee. In addition, projects with existing vesting tentative maps or approved development agreements would be exempt from an ordinance adopted after the date of their approval. ¢Includes community Development Block Grant, HOME Investment Partnership Act, and County Redevelopment Agency resources. 5 t Over the last five years,3,913 new housing units were built in the unincorporated area for an average of 783 units per year. Assuming continuation of this growth trend, an in lieu fee of $2,000 to$5,000 per market rate unit' would appear to generate a maximum of$1.6 mil. to $3.9 mail, per year. However, there are a number of factors which reduce this estimate substantially. o New housing developments which include the required percentage of affordable units would not be required to pay an in lieu fee. While this factor would vary depending on the level of affordability required, housing which is affordable to low and moderate income households (up to 120 percent of the area median income) would qualify as affordable under most programs and would, therefore,meet the inclusionary requirements. While no specific data is available, it is generally agreed that a significant portion of the units developed in Bast County are affordable to moderate income households. Over the past five years, over half of the units developed have been in East County. Only 22 percent of the growth has been in the relatively high cost San Ramon j Valley area. o Housing developments with a vesting tentative map or approved development agreement would not be subject to a new inclusionary affordable housing/in lieu fee program. According to information provided by the Current Planning Division, almost all housing development and all of the large scale development which has been occurring in the unincorporated area has been in developments covered by approved vesting tentative maps or development agreements. This trend is likely to continue over the foreseeable future. o Inclusionary programs frequently provide exemptions for specific categories of projects (e.g.,developments with less than 10 units), further reducing;the number of units to which a program would apply. o Finally, over a third of the housing growth which has occurred over the last five years has been in Oakley. If Oakley residents vote to incorporate, future growth in the new City would'not be subject to a County-imposed inclusionary program, reducing potential fee revenue. Over the long term, additional annexations and incorporations weld further reduce the geographic area and units to which a County inclusionary program would apply. Taking these factors into consideration, a more reasonable estimate of the revenue generation potential of an affordable housing in lieu fee program over the near term would be substantially lower, in the range of$130,000 to $325,040 per year, depending on the level of the fee's. 5Previously approved housing development agreements negotiated by the County include fees ranging from a low of $400 per unit for stonecastle Homes to $3,333 for weideman Ranch and Cypress Lakes. ('Assumptions: fee ranging from $2,000 to $5,000 per market rate unit; annual horsing unit growth in the unincorporated area continues at 780 units per year with no significant incorporations; of the total units developed, 75 percent are either affordable by definition or include the required affordable units; of the remaining 25 percent, half are covered by existing vesting tentative maps or development agreements. These assumptions result in a revenue estimate of $198,000 to $490,000 per year depending on the fee. Assuming Oakley incorporates and using the same assumptions results in a fee revenue range of $130,000 to $325,000 per year. 6 V. Estimated Cost of a Nexus Study As discussed in the March 27th Report to the IOC, a study to identify a nexus between an identified legitimate government interest and the requirements which would be imposed by a County ordinance implementing an inclusionary affordable housing program with an in-lieu fee option must be performed prior to implementation of such a program. The cost of such a study varies with the complexity of the proposed program and, to some degree, with the size of the jurisdiction involved. A preliminary survey of jurisdictions and consultants who have performed such studies indicates a range in cost of$15,000 to more than $100,000. Given the breadth of the unincorporated County, and the level of scrutiny such a proposal would likely receive, a cost at or near the high end is more likely. VI. Commercial and Industrial Development Fee Programs The County could choose to adopt an ordinance to impose an affordable housing fee on commercial and industrial development based on the impact of such development on the need for affordable housing. This ordinance could be in addition to or in place of an inclusionary housing ordinance with an in lieu fee component. Under California. State law, adaption of a commercialfiindustrial development affordable housing fee ordinance would be subject to the same requirements,as an inclusionary housing ordinance with an in lieu fee component. As stated in the previous March 27th Report to the IOC, analysis of the following questions must precede the adoption of such an ordinance in order to justify imposition of an affordable housing fee as a condition of approval for commercial and industrial development. A. Is there the required "nexus" or connection between an identified legitimate government interest and the requirements which would be imposed by a County ordinance implementing an affordable housing fee on commercial and industrial development and is that interest advanced by such an ordinance? [See Nollan v. California Coastal Commission, 483 U.S. 825(1987).] B. If the required nexus exists, is there a "rough proportionality" between the condition to be imposed on the developers by the ordinance and the development's impact? [See Dolan v. City of Tigard 512 U.S. 374, (1994)]. A response to this issue with respect to commercial and industrial development would require. a calculation of the increased need for affordable housing which would result from the proposed development; an estimate of the subsidy required to meet the increased affordable housing need; and calculation of an appropriate fee based on the need and subsidy requirements. C, Can all the statutory requirements for a development fee be met under Government Code Section 66000 et serf This analysis requires the following determinations. I. identification of the fee purpose and use. With respect to a commercial/industrial development fee program, the fee purpose and use would potentially involve the production of affordable housing to meet the needs of very-low, low, and 7 moderate-income households attracted to the area by the increased employment opportunities created by the additional development. 2. Determination that there is a "reasonable relationship" between the fee's use and the type of development upon which the fee is imposed. This analysis would require the establishment of a relationship between new commercial and industrial development and the need for additional affordable housing. 3. Determination that there is a "reasonable relationship" between the amount of the fee imposed and the cost of mitigating the impact of the proposed development. This would require demonstration of a specific quantitative relationship between the amount of the proposed development fee and the increased demand or need for affordable housing resulting from the new commercial and/or industrial development. In summary, in order to support an ordinance which would impose an affordable housing fee on commereialrndustrial development, a nexus analysis should be prepared, including all documentation required to support the statutory fee requirements of Government Code Section 66000 et seq. The documentation should establish a reasonable, quantifiable relationship between the proposed fee as a condition of approval and the need for additional affordable housing created by new industrial/commercial development. VII. Jurisdictions Imposing an Affordable Housinu Fee on Commercial and/or Industrial Development Jurisdictions which have an ordinance and program to impose a development fee on commercial and industrialdevelopment include the Cities of Pleasanton, Sacramento, and San Francisco. These programs are summarized in Attachment C. The Pleasanton ordinance imposes an affordable housing fee on all new residential, commercial, office, and industrial development. Current fees are $2,122 per single family home, $707 per multifamily unit, and $0.47 per square foot for commercial, office and industrial space. Housing developments which include 15 percent of the units for low-income households are exempt from the housing fee. Since the program's inception in 1978, the City has received approximately $12 mil. in fee revenue (average of $600,000 per year). The City and County of Sacramento have an ordinance which imposes a development fee on non- residential development(commercial, office, etc.). The fee is based on square footage and varies by development type. The City and County of San Francisco imposes a housing development fee of$7.05 per square foot on commercial, office and industrial development. Since 1185, the San Francisco fee has generated $7 mil. in revenues (approximately $540,000 per year). Attachments 1> Ile cc: Board of Supervisors Victor J.Westman,County Counsel Diana J. Silver,Depuky County Counsel Dennis Barry,Community Development Director Kathleen Hamm,Principal Planner-Housing Housing Trust fund`["ask rorce Members Kl UCAncluO 9 ......... ......... ......... ......... ......._. ........ _..__.... ......... ......... ......... ........ ......... .........._..._... . ........................................................................................................................................................._____. . ................................................................................................ ................... Attachment A CONTRA COSTA COUNTY Income Limits by Household Size-Effective January 7, 1998 Persons per Very-low Median Moderate Household Income Low Income income Income 1 $22,150 $31,700 $44,300 $53,150- 2 $25,300 $36,250 $50,600 $60,750 3 $28,500 $40,750 $57,000 $68,350 4 $31,550 $45,300 $63,300 $75,950 5 $34,200 $48,900 $68,400 $82,050 6 $36,700 $52,550 $73,400 $88,100 7 $39,250 $56,150 $78,500 $94,200 8 $41,800 $59,800 $83,600 $100,250 Very low income households are defined as Households with incomes at or below 50%of the area median income(AMI);low--income house- holds have incomes at/below 80%AMI; median income households have incomes at/below 100%AMI; and moderate income households have incomes at/below 120%AMI. Source: U.S. Dept. of Housing and Urban Development Maximum Affordable Rents(a) Persons per Very-low Median Moderate Household Income Low Income Income Income 1 $ 554 $ 793 $ 1,108 $ 1,329 2 $ 633 $ 906 $ 1,265 $ 1,519 3 $ 713 $ 1,019 $ 1,425 $ 1,709 4 $ 791 $ 1,133 $ 1,583 $ 1,899 5 $ 855 $ 1,223 $ 1,710 $ 2,051 6 $ 918 $ 1,314 $ 1,835 $ 2,203 7 $ 981 $ 1,404 $ 1,963 $ 2,355 8 $ 1,045 $ 1,495 , $ 2,0903 $ 2,506 (a)Housing costs including utilities equal to 30%of monthly Income. Maximum Affordable Housing Price(b) Persons per Very--low Median Moderate Household Income Low Income Income Income 1 $ 70,500 $ 104,900 $ 150,200 $ 182,000< 2 $ 81,800 $ 121,200 $ 173,000 $ 209,400 3 $ 93,400 $ 137,400 $ 195,700 $ 236,700 4 $ 104,700 $ 153,800 $ 218,500 $ 264,000 5 $ 113,900 $ 166,700 $ 236,700 $ 286,000< 6 $ 122,800 $ 179,900 $ 255,000 $ 307,700 7 $ 132,000 $ 192,800 $ 273,200 $ 329,700 8 $ 141,200 $ 205,900 $ 291,400 $ 351,400 (b)Assumes 10%downpayment, 30-year mtg.with 8% interest; Housing casts represent 33'%of monthly income. c.kh/YLIM98.XLSSheetS 7/23198 ', bra•, lift ti I ji I IliaI ii. X11 11 Z zas z C ts ttl 41 C O Y/ tY1 � d � c w ZS . en e z :t D fl b —1 C U F z m z C 4 Qg L t _Z 17 O O # L° t G _ _ St 2 O `a GL am w 40 of BCW till ,.� !, , xa , al I A u ts, m IV-- 4 www o c dq £? 02 Ri ' h42. +t.. 2 „ - 4D s Ac tLL+�r+►► Summary of"Building Livable Communities; A Policymaker's Guide to Infill Development,, by the Local Government Commission(August, 1995) I. Why Infill? A Reduce sprawl/driving; B. Lower fiscal impacts on government; C, Lower business costs/personnel costs; D. Preserve open space/farm land;and E. There is room II. Barriers to Infill A- Zoning for separate use; B. Costs are higher than building on raw land; C. Community opposition; D. Fear of reduced marketability; E. Finance and capital markets lending criteria; F. Age/condition of existing infrastructure III. Encouraging Infill -Local Government's Role A. Plan Proactively 1. Define your community vision; 2. Identify specific infill sites; 3. Designate desired type of development; 4. Prepare specific plans/master EIR's for infill area; S. Establish redevelopment areas around transit centers; 6. Prepare design guidelines for infill areas; and 7. Collaborate with other public agencies impacted by infill B. Assuring Public Participation 1. Listen and involve the community; 2. Educate the community on a. Benefits of infill; and b. Trade-offs between infill and sprawl IV. Using Public Facilities and Development Fees to Attract Investment A. Invest in the infill areas(put your money where your mouth is);' B. Share the cost of infrastructure improvements; C. Accommodations in development fees 1. Differential fees for infill; 2. Delay collection from cash flow D. Lower parking near transit; E. Adjust levels of service for infill that encourages pedestrians, bicyclists, transit; .................................. V. Assist with Project Financing A. Utilize public sources of financing for 1. Predevelopment; 2. Land, including write downs; 3. Loan advances; 4. Funding, developer reserves; 5. Infrastructure; and 6. Leasing space B. Fee waivers, and C. Public land sale/lease/swaps; D. Pooled investment funds for CRA purposes VI. Zoning for Niixed Use/High Density(and related development ordinances) A. Revise zoning codes to increase effectiveness, streamline processing, and enhance certainty; B. Zone for mixed uses(P-1); C. Transit-oriented-development; D. Density Bonuses; E. Allow accessory units; F. Allow flexibility to addressing building code; G. Allow TDR's; H. Create"by-right" zones; 1. Tax exempt bonds, redevelopment tax increments, CDBG, HOME, etc. VII. Encourage Rehabilitation A. Rehabilitation financial assistance; B. Code enforcement provision of adequate services rD:idatalwp6M09\1ivcomm fs /Fns'' F £F ELEMENTS OF GOOD TRANSIT-ORIENTED DEVELOPMENT L Land Use * Encourage a Mix of Land Uses • Provide Appropriate Densities • Locate Highest Density Development Closest to Transit Stops and Routes Locate New Development,Along Transit Routes in Existing Urban/Suburban Activity Centers • Focus New Development Within a Quarter-Mile to a Half-Mile of a Transit Stop 2. Site Design • Retail and Office Buildings Should be Near the Roadway * Pedestrian-Oriented Retail Uses Should be Located Along the Roadway * Buildings Should be Oriented Toward Transit Stops j Distance Between a Building Entrance and the Transit Stop Should be Minimized * Abundant Free Parking Should be Discouraged Reduce Supply - Provide for Shared Parking Neighborhoods and Transit Stops Should be Connected-with Direct Pedestrian Walkways Street Systems Should have a Clean Functional Hierarchy * . Streets Should be Configured to Allow for Through and Efficient Movement of Buses • Link Adjacent Development Parcels with New Roadways 3. Pedestrian and Transit Facilities -Geometries On Roads Serving Development Should Accommodate Transit Other Transit Stops Facilities Should be Appropriately Sited Provide Generous Landscaping,Paved Walkways, and Safe Street Crossings • Bicycle-Friendly Facilities Should be Available • Buildings, Walkways,and Transit Facilities Should be Accessible to People With Disabilities • Transit Passenger Safety and Security Should be Given a High priority sourx: $u X18 L�vabfa C ies A.Fsrtic kc's Ovideto Transst Netted Development by G�tcr for Livable+Communities/ Lmd Govemment Commission (August,1996) A LL 2 �? k :tet rnares CAUr-ORNIA FuTuRes NOWORK wa The Smail Growth Principles for California +The Challenge of Sprawl years.At the current rate,we are adding nearly four California's quality of life is at risk,Poorly planned, million people--or the entire city of Los Angeles-<-- sprawling development threatens us all—urban, to the states population every seven years.If suburban suburban and rural residents alike.We see the signs all sprawl continues unchecked,our quality of life will around us.Runaway sprawl causes traffic congestion deteriorate drastically in the years ahead. and long commutes.People have less time for their +Ensuring a High duality of We families and communities.As more land is paved over, water is polluted by runoff.As people drive further In today's global economy,businesses can invest there is more smog in the air.Open space,farmland anywhere in the world.Good jobs go to those regions and natural areas are destroyed. and communities*that can attract and retain entrepre. Despite one of the strongest economic booms in new and a qualified workforce.By acting with California's history,many communities throughout the fbresight,Californians can ensure the high quality of state have rates of poverty and unemployment two to life—including excellent schools,choice of affordable three times the national average Town centers,rural housing near jobs,prospetous local;businesses,efficient ghborhoods,good main streets,historic districts and residential neighbor- libraries, arks and open spacetand hoods deteriorate as poor planning and land use a clean environ. merit—we aced to compere in the global economy.decisions dmin the economic vitality from existing cities and towns. But to achieve this future,we must act now at the Taxpayers in existing neighborhoods bear the state level to curb spmwL Local action,while impor- burden of extending costly services to sprawling tant,is not enough.State government makes the rules that govern land use planning,financing and develop. . . cookie-curter subdivisions on the edge of town or in mens in Californiayscommunities.$y enacting more the middle of nowhere Police and fire protection, schools,parks,libraries and other services decline. equitable and effective state policies for taxing, Crime,blight and suffering too often follow spending,land use and development,based on the following principles,we can protect and enhance the .California's population of 33 million people is quality of life for all the people of California. projected to increase by 50 percent in the next 20 r •Stnart Growth Principles for California Plan,for thoTuture:. ' Make government more responsive,effective and accountable by reforming the system of land use planning and public financing. 2. Promote Prosperous and Livable Communities, Make existing communities vital and healthy places for all residents to live,work and raise a family. _ 3. Provide Better Housing and Transportation Opportunities: Provide efficient transportation alternatives and a range of housing choices affordable to all residents,without jeopardizing farmland,open space and wildlife habitat. 4. Conserve Green Space and the Natural Environment: Focus new development in areas planned for growth while protecting air and water quality and providing green space for recreation,water recharge and wildlife. tJ. Protect California's Agricultural and forest Lands. Protect California's farm,range and forest lands from sprawl and the pressure to convert farmland for development. --------------------------------------- t Endorse the Birgit Growth Principles By endorsing the Smart Growth Prinaptts,you grant the California Futures Nerawk(CFN)permission to publicly use your mine. Individual Organization Mame: Title: Organization: Address: city/Statetzip: Phone: Fax: E-mail: Please mail or fax this form to:CFM,2201 Broadway,Suite BIS,Oakland,CA 44612 Fax:510'238-9764 M Ls 4 rtatewtde eodlition de&dtedso tconomtca4 Socially M)4 ermironmmntuily sustab abie kind use.In C<rubmia. ............................................................................. ............................................ .....................................................................- ...................................... Nov-19-98 05: 19P The Next Generation 510 444-4743 P.01 Organization American Farmland Trust Am1erican Planning Association &1 ,0om Rahelle: Ma M&Y Audubon Society-Western Regional 84%oamla Center for Land Recycling California League of Conservation RaMommiaLSVak Foundation Communities for a Better Environment FBE aml unity Alliance with Family Farmers AF EF Da ommun*Environmental Council Community Food Security Project Endangered Habitats League Environmental Council of Sacramento OrCedonTelt Alliance Greeninfo Network Latino Issues Forum League of Women Voters Local Government Commission Mogavero&Notestlne Architects& Pano lionahetwork for Immigrant and P of onu-ProstRiKohlussIng Association of OPan'tonmg'aonagf8omn'saervation League (9$L)bf Riverside Save Open Spacsand nd Agricultural ges0 o X =ca ave We X=Acag River Association Sierra Business Council Sierra Nevada Alliance Surface Transportation Policy Project VaTfeyNsion Project California Preservation Foundation Community Development Technologies 521toonral Indian Justice Center Economic Development Corp.of LA Eq;n 0 Azusa East Say Municipal Utility District Nov-19-98 05:20P The Next Genevat-ion at—ion 510 44.4-4143 P-02 .,,. Organization The Planning Report!Metro Forum ptrolKam B aunty Farmer STPD San Francisco office tNational Resources Defense Council Cirunn of Mendocino Silicon Valley Manufacturing Group School of Policy Planning S Corrpeorganus"I r Icupportive Housing Rural California Housing Corp, California Women for Agriculture Westside Urban Forum Spanish Speaking Unity Council United Methodist Church City of Los Angeles City of San Diego Small Business Jv1n �er M Silicon Valley Network Housing California {C�alifornita�Community Economic Rama'Var4a a FRai�g0fo'A"Economic Vona'a amodtii�0 Jim Gonzales&Associates Legisitative Calllforan Assembly Aprudobon YESi(Yount Env.Service) Calfflm"Is Futures Network United Food&Commercial Workers W%mo%uts an to'6tapter Community Economics Southern California Association of ant atsHoorutyNp SCANPH Concord Neihborhood Alliance Californians and the Land Central American Resource Center (CARECEN) University of Calif Santa Cruz Nov-19-98 05:20P Tha Noxt Gamy-alAon 510 444-4.743 P_03 Organization California State Senate California State Senate City of Reedley Culver City Consensus Organizing institute City of Santa Crux' City of Sacramento City of Pleasanton City of Los Alamitos City of Lodi City of Ventura Latino Network County of Santa Cruz City of Davis Farmland Working Group PS Enterprises County of Sacramento Sacramento City Unified School District City of Richmond City of San Jose California State Assembly City of West Hollywood California State Assembly City of Hayward City of Port Hueneme _ Sacramento Metropolitan Air Quality Rpmrt District California State Assembly California State Assembly Santa Barbara Board of Supervisors Southwest Voters Registration and FromeVIpaIcReary of Trade Srocoun onterey Yuba City {:;: 2SiS:S: L�liSS ..:??.:�ii:.'.:?.ii:.S?:i:]:?::::::::>:?.>:::.?.>:�.......::,.::.i:.:??+.:..,... .....:.........:::::::::::::::::::.::.::::::::::::::::.� :::::::::::::::::::d9> .............. ..... %:: li ::::::;:::%!i:.i:�i'M;;>:v:.�:! %,::i:.::::i>+.......:i :.+/...+.r... 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SUSTA[NABtLIW,frorm page`i Regional Water Quality Board,ABAG,the help direct the Alliance's areas of focus. 3)How can the housing and job growth Metropolitan Transporfatim CmmtWmsian Continuing to build on work completed areas be linked, either by geography, and the Bay Conservation and Develop- by other's, ABAG compiled a top ten list mobility or affordability? meat Commission. cuffed from 81 action recommendations 4) How can a regional program of infill contained in recent reports regarding is- development combined with urban eanwhUd, official city and sues of land use,transportation,air qual- growth boundaries be provided in an county programs are repre- Ity, natural resources, economic vitality, equitable and fiscally responsible stinted at the BAASD. social equity and education/outreach.The manner? Sustainability Program Roundtable. Rep- result was a first cut at identifying the 5)How cart more value be obtained from resented are the cities of Berkeley, Oak- strategises that are guiding the efforts of existing transportation dollars to en- land, San Jose; San Francisco City and diverse organizations working to achieve sure efficient andequitable service? County; San Mateo, Santa Clara and a more sustainable region. 'i'he Affiance Alameda Counties;Sustainable North Bay; Is very conscientious—trying not to dupff- tie vast task being undertaken by the Joint Venture Index of Silicon Valley; tate but to enhance and complement the the BAASD is a reflection of the the Economic Development Alliance for efforts already underway," said Cell growing interest in sustainability Business of the East Bay; Urban Ecology; Scandone, ABAG. "it's a very rich and in our communities and around the would. ABAG;the BAC Bay Area Economic Forum; robust effort," According to the Center for sustainable and Ell Urban Habitat Program. Communities at the University of Wash- According to co-conveners James Nixon E ington,there is a growing awareness and of Progressive Asset Management and i acceptance that population growth, re- Torn Hinman of BAC, the focus of the source use,and modern technologies are roundtable is to: compromising the ecological systems and #) identify and share resources; communities of our planet, endangering 2)identify and understand common bar- and threatening a,healthy future for' tiers and help overcome obstacles; humans and other life forms. Problems 3)develop a common strafe$Y for public generated by humans are increasing in education/outreach .and media vela- number and complexity in virtually every tions; and locale and region,and for the first time in 4) collaborate on indicators to help as a recorded history are demanding our at- regional assessment tool, tendon on a global-level. The fact is, if (Community indicators am'measunng sys- social limits do not constrain our growth, tems designed,developed and researched at some point ecological constraints-may by community members themselves transform the old frontier expression cif ...(whish provide clear and honest info,- `grow or die"into another reality of'grow oration about past trends and current and die."More,we are coming to team;is realities, and assist citizens In steering The BAASD Scoping Committee has iden- not necessarily better. theircommundiesontheirdesiredcourse., tified five points which It recommends "Do Unto Other Communities': according to the San Francisco-based that Alliance pursue, two of which are Sustainabilitymeans pursuingbatance and policy and research institute, Redefining value-based and three action-based.The relationship rather than domination,coon Progress.) committee recommends that these points trot and Isolation, according to Daniel To further assist in its research and comprise the 'prism" through which the Chiras, founder of the Colorado-based development,the Alliance,via ABAG and Alliance views all its work: Sustainable Futures Society. Monty the EPA,has undertaken a survey of Bay y)How can the concept of region be made Hempel, Professor of Public Policy at Area organizations and-individuals in car a value in the Bay Area? Claremont Graduate School, says iter to identify, inventory and facilitate z) How can the"Concept of sustainable sustainability requires the "community of confluence of sustainable efforts in the development.tie made a value in the communities" approach. The interactions region. survey results are being used to Bay Area? (continued an page 8) S/Y of Women Votem 1 BAYAREAM0AffT'[JRWMPROFIT u t BIWA MAIL RATE OMANMATM UA.POSTAM 500 St.Marys Rd.Su#be 44 WALWTCffl3KCA Lafayette,CA 94549-WI paws No.0% THOUGHT- f OVOKtNG tVEAO: tJ" USTAINA51 TY, page i ` Ri TRANSPORTATION, JIM KENNEDY page CONTRA COSTA CO REDEV AGENCY 651 PINE ST , 4TH FL , NORTH MARTINEZ, CA 94553 5U5T'AINABCLMY,f,orn page 7 between communities, as ;much as the governmental efforts. 2) It seeks policies arena."It's in the utIrAy's best interest that interactions within, determine each and actions that create long-term solu- the economy be sustained in the long community's potential for sustainability. tions that are preventive in nature. 3) It term,'Melhus explained.`Long term eco- In his view, a sustainable community is seeks total solutions to solve total, re- noetic viability Is tied to environmental one in which economic security,environ glonal and even global Issues. {As and social equity within the area.A plan mental stewardship and civic democracy Buckmiinster Miler said, 'Chink globally, forsustainable development implemented are linked In a complementary fashion, act kocally.1 4)It must be comprehensive, In the -area may lead to a sustained thereby fostering a high quality of life and allowing for full public participation, rec economy and vitality.That's what rd like a strong sense of reciprocal obligation ognition of the carrying capacity of natu- to hear.people say: that Ws In my self among its members. ral systems, and technology and human Interest to do this.'If everyone can agree, The power of the concept of behavior practices that conserve and pru- and focus on areas of agreement rather sustaiinabirity lies in its Integration of eco- dently use renewable and non-renewable than discord,we can achieve soniethIn .' nomic,social and ecological systems,pre- resources. Galt Sdrkcdle viously studied and dealt with separately. To continue its work,the BAASD Is seek, Sustainable community development dif- Ing funding from public and private for more information. Bay Area Aliiariie for fens from traditional community develop- sources. To date,the only direct funding Sustainable Development, P.O. Box 770(0=00,, ..,. went In a number of ways. 1) it is an source has been a grant from the Bank of Main Code 6260,Sari Francisco,CA94117,415 R integrated approach.That is,it seeks strat- America. Meanwhile, In-kind funding Is 973-1466. x. egies that satisfy the triple bottom fine: coming from the many organizations be- social,economic and environmental;and coming Involved, such as I. Pill:, which rx includes lousiness, government and non- pays Melhus' salary for his work in this �•$ r a .,,area ., �' 4..ce for Sustaina6fe L _ vel�t� •ent:;. ?,, , ..�w . p r 7, h April 30,1998,'9:00 a.m.-noon 49 Sierra Club` ,3 ' 85 Second Street,San Francisco ,. ' +1k e! t M_* •�.,r} /�~�.. L After introductory remarks by Michele Perrault,International'Vice President of the Sierra Club,and self-introductions(attendance list attached),Dick Clarke provided soe'opning comments on what we need to do to make the Bay Area Alliance for Sustainable Development successful. He - reiterated and emphasized the interdependence of the economy,the environment,and social equity(3 es).He also provided a brief history of past meetings ofthe Alliance and the educational efforts to date as manifested by an in-depth session addressing each of the 3 e's. He emphasized the need for the Alliance members to build trust amongst themselves,to work collaboratively by looking beyond single- issue advocacy,and to commit to working together during the next 12-14 months to develop the proposed Compact for Regional Sustainability. As a measure of Alliance successes,he pointed to the Bay Area regional agencies' meetingsfacilitated by the Alliance and the participation of the five regional agencies in the Alliance,as well as participation in the Alliance meetings of some State and federal agencies. He expressed encouragement with the numerous subregional sustainable development efforts that are ongoing in the Bay Area.. Carl Anthony supplemented Dick's remarks by pointing out the Bruntland Commission's opinion that poverty and social equity issues need to be at the center of discussions of sustainable economic development. 11. Ray Anderson,co-chair of the Presidents Council on Sustainable Development(PCSD),and Chairman and CEO of Interface,Inc.,a carpet the manufacturer based in Atlanta,addressed the meeting and pointed out that the Bay Area Alliance for Sustainable Development is already a model for the whole country. He hopes that the Alliance members will push its agenda forward and"make it happen." If the Alliance is able to demonstrate success in the Bay Area;people all over the country will want to learn how it was done. He pointed out�that all sustainable development is local and that work such as that being done through the Alliance in the Bay Area is more,important than the work being done in Washington D.C. Ray provided an update on the PCSD,citing its two current areas of focus: 1)achieving consensus on the policy recommendations delivered to the President in the PCSD report"SustainabteAmerka. a New Consensus"and 2)raising the awareness level among the American people on the concept and meaning of sustainable development.' Ray also pointed out that the PCSD,at the"Vice President's direction,is addressing four major themes: global climate change,sustainable communities,an environmental management system for the 21 st century,and international outreach/leadership. The PCSD is also planning a National Summit on Sustainability to be held in Detroit in May, 1999. The expectation is that more than 5,000 people will attend the Summit and that through 501concurrent events around the country,50 million people will be"touched"by the concept and meaning of sustainable development. He asked that the Bay Area Alliance for Sustainable Development facilitate a local effort in the Bay Area. Of all the institutions that can make a difference with respect to sustainability,Ray thinks that only business/industry can truly"make it happen." "The sustainable development effort must be led by industry if we are to avoid the precipice we are surely heading for." Bay Area Alh t for Sustainable Development Minutes April 30,1998 In response to a question asking him to identify the five things a business can do to move toward sustainability,Ray responded"understand what you take,understand what you make;and understand what you waste." Then"invest to reduce your waste"and"ask your customers if they rare about the earth," UL Working Groups:Sunne Wright McPeak kicked.off the discussion of Working Groups (previously called Task Forces)by indicating her perception that the work of the Alliance is beginning to be associated with the work of many of the organizations that were in the room. She highlighted the importance of having the Alliance chaired by people representing the perspectives of:each of the threees and suggested such an-arrangement for chairing the Working Groups as well. Five working groups were discussed. Several modifications to the titles and charters+ofthe Working Groups were suggested. In addition, it was suggested and agreed to that"Working Groups"is a more appropriate title for what had been called"Task Forces"due to the militaristic connotation associated with'Usk forces." The modified description of the Working Groups is attached to these minutes. For the near-term,the Alliance will conduct its work through these five working groups and the four working caucuses,i.e.,social justice,regional agencies,sustainability roundtable,and economic/employer. It was suggested that each Working Group be provided with a checklist of issues to keep in mind and address. 'These would be comprised of key considerations from the perspective of each of the e's,and should perhaps be developed by the existing working caucuses. Another comment leaves a question to be resolved--If there is a conflict among recommended actions from the different working groups,how will the Bay Area Alliance for Sustainable Development evaluate the feasibility of the recommendations? Finally,.it was suggested that the Alliance consider moving up the timing of tax/policy policy working group, i.e., launching the effort prior to completing the work of the other workings groups. Each attendee was asked to complete a"'sign-up"sheet indicating working group(s)on which he/she is willing to participate(others are also welcome to"sign-up"). Following are the confirmed leaders of the workings groups: Working Group Environmental Social lt'quity Economic Sustainable Donna Liu,Natural TBD Charles McGlashan, Development Resources Defense Geomatrix Indicators Council Consultants Best Practices List Michael Closson, Catherine Bullock TBD Center for Economic Theuriet,Non-Profit Conversion Housing Association of Northern CA Housing,Jobs and Rachel Peterson, Carl Anthony,Urban Reid Gustafson, Shea Access Urban Ecology Habitat Homes Environmental Michele Perrault, Mohammed Nuru, Rich Morrison,Bank Quality and Sierra Club San Francisco League of America Biodiversity of Urban Growers Public Education& TBD TBD Noon Zeisser, Media Strategy, Chevron Page 2