AGENDA REPORT. Members of the Planning Commission Terri C. Schaeffer, Housing Program Coordinator/Code Compliance Officer

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1 CITY OF PACIFIC GROVE 300 Forest Avenue, Pacific Grove, California AGENDA REPORT TO: FROM: MEETING DATE: November 5, 2015 SUBJECT: CEQA: RECOMMENDATION Receive the Housing Monitoring Report Members of the Planning Commission Terri C. Schaeffer, Housing Program Coordinator/Code Compliance Officer Housing Monitoring Report Does not constitute a Project under California Environmental Quality Act (CEQA) Guidelines DISCUSSION Each year, the Housing Division of the Community and Economic Development Department monitors properties that have received development approvals for projects involving the creation/legalization of second units on single family dwelling sites, and affordable housing units established throughout the City via development incentives. Several units remain vacant because property owners choose not to rent units governed by City regulation. Affordable Units monitored are located across 13 properties and include 21 units. Four units are vacant. Also confirmed were 29 low income homeowners who reside in properties benefiting from the housing rehabilitation loan program. Please find attached the Housing Monitoring Report. The purpose of this report is two-fold. First, it provides a summary of procedures and results of the monitoring program. Second, it provides information essential to identify achievements and changing circumstances where policy review and/or changes may be necessary. ATTACHMENTS Housing Monitoring Program Report RESPECTFULLY SUBMITTED: Terri C. Schaeffer Housing Program Coordinator/Code Compliance Officer

2 City of Pacific Grove HOUSING MONITORING PROGRAM REPORT (2014) The Housing Monitoring Program reports on the availability of affordable housing in the City of Pacific Grove through an annual review of a segment of private residential housing units. The data gathered is used to update the City s Housing Element. City ordinances and policies over time have contributed to the availability of affordable housing on behalf of senior citizens, disabled individuals and low income homeowners with fixed incomes. Since 1998 the Housing Division monitors affordable housing units through the initial selection of tenants; updating annual changes in tenant income and rent increases; and certifying new tenants throughout the year as requested. These rental units are approved second units, affordable units and registered (defined below 1 ). Property owners with outstanding Housing Rehabilitation loans (HRLP) are counted as affordable and are monitored based on state requirements. Property ownership is verified through the County Assessor s office. Self-certification forms are completed by property owners to certify that they occupy the property. Some property owners are also required to provide tenant occupancy information. Homeowners under the HRLP complete owner occupancy certification forms and supply proof of residency by submitting copies of utility bills. Current home owner insurance policy statements and current property tax bills are also verified. Property owners failing to provide owner occupancy certification, or any other information requested base on a governing program ordinance or policy are considered code compliance investigations. Results: There are sixty one secondary housing units. Of these approved second units, Group One includes thirty nine properties, Group Two includes nine properties, and Group Three includes nineteen properties. Twenty two secondary housing units are affordable units. 1 Second units Rental units subordinate to single-family dwellings; Affordable and Registered units - Rental units associated with residential properties and are approved/registered affordable units can be multifamily or mixed use dwellings in addition to single family dwellings; established with a conditional use permit or Deed restriction. Page 1 of 4

3 Second Unit Owner Occupancy Requirement. Thirty nine Group 1 property owners are held to the condition that they must occupy either the main house or the secondary housing unit, or use their property as a second home on site instead of requiring occupancy as their principal residence. Eight Group 2 properties meet the owner occupancy requirement and thirteen Group 3 properties meet the owner occupancy requirement. (See Table 1) Type of Occupancy Requirements - Binding Ordinance or Code Pre Ord (Prior to 1992) Group 1 Ord ( ) Group 2 Ord (2003 present) Group 3 Table 1 - Second Units-2014 Number of Approved Second Units Owner lives on Property 1 Unit Provides housing for LI/DSBLD/SR Total Second Unit Rental Requirements. Twenty two property owners are required to provide tenant rental information. Fifteen owners provide rental housing to moderate-income, low-income, senior and or disabled tenants. Seven property owners indicated that their second units are vacant or they use the unit for personal use and do not charge rent. Fees: The monitoring fees collected in 2014 totaled $1,269. AFFORDABLE UNITS Item 7b Thirteen properties throughout the City comprise twenty one affordable housing units. Of the twenty one units, eleven are studio units and ten one-bedroom units. These properties are monitored for: (1) Annual rent increase limits, and (2) Income eligibility requirements of the tenants. All prospective tenants must be income-certified by the City s Housing Division before occupancy of an affordable unit. In the 2014 monitoring period seventeen units were rented to a total of nineteen tenants. Four affordable units are confirmed as vacant. Two of the vacant units are located at Forest Hill Manor. Two owners continue to challenge the rental requirements and their properties remain vacant. (See Table 2) The Vista Point Complex, located in the 700 block of Jewell Avenue provides 48 affordable units for seniors (62 years and older), plus a unit for an on-site custodian or property manager. These 48 apartments provide: 42 units at 50% of the area median income (AMI) 6 units at 60% of AMI 1 unit at 80% of AMI Page 2 of 4

4 Table 2 - Affordable Units 2014 Type of Unit Income Level Served and General Location of Unit Current Rent/Month Household Size 1 Studio Low Income-1100 Blk Lighthouse Ave $ Studio Low Income-1100 Blk Lighthouse Ave $ Studio Low Income-1100 Blk Lighthouse Ave $ Studio Low Income-1100 Blk Lighthouse Ave $ Studio Low Income-1100 Blk Lighthouse Ave $ Studio Low Income-1100 Blk Lighthouse Ave $ Studio Very Low Income-400 Blk Lighthouse Ave 0 Vacant 8 Studio Low Income-500 Blk Gibson Ave 0 Vacant 9 Studio Low Income-500 Blk Gibson Ave 0 Vacant 10 Studio Very Low Income-800 Blk 19 th St $ Studio Very Low Income-900 Blk Cedar St $ BR Very Low Income-100 Blk Pine Ave Section BR Very Low Income th St $ BR Moderate Income-500 Blk Pine Ave $ BR Moderate Income-500 Blk Pine Ave $ BR Low Income-500 Blk Pine Ave $ BR Low Income-100 Blk Evans Section BR Lower income-100 Blk 15 th St $ BR Lower Income-100 Blk 14 th St $ BR Very Low Income-1000 Blk Funston Ave $ BR Moderate Income-400 Blk Central Ave 0 Vacant Fees: The fees received to monitor Affordable Units totaled $ Overall, the 2014 monitoring fees totaled $2, and have been deposited into the Housing Program Fund. HRLP PROPERTIES Monitored HRLP properties included those with outstanding loans owed to the City. In all cases, the owner must continue to occupy the property or the loan must be repaid. Additionally, the owner must maintain current active homeowners insurance and must be current in property tax payments. The housing staff monitors owner compliance annually. UNDOCUMENTED RENTAL UNITS PGMC Permitting of undocumented dwelling units has been used to help owners comply. Also, the PGMC Second Units is considered to determine whether the property and the existing unit can comply under this section. Since the passing of the Undocumented Unit Permitting Ordinance in 2014, permits for 3 units have been approved to date, 2 permit applications are pending for a total of 5 permit applications, and 1 inquiry. (See Table 3) Table 3 Undocumented Unit Permit Applications Processed Start Date Location Type Resolve Date Note 12/20/13 17 th St 500 block Detached unit 1/6/14 Approved 3/4/14 Adobe 1000 block Detached unit 4/14/14 Approved 10/6/14 Locust 200 block Above garage unit 10/15/14 Approved Page 3 of 4 Item 7b

5 CONCLUSION The Housing Monitoring Program continues to account for the City s affordable housing stock in the review of occupancy requirements of all 74 properties (a total of 82 rental units) and 29 HRLP properties. Housing Division staff field calls throughout the year from citizens looking for affordable housing in the City of Pacific Grove. Staff also provides tenant income certifications as units turnover. Attachment: A 2014 Income Guidelines for Housing Programs Page 4 of 4

6 City of Pacific Grove COMMUNITY DEVELOPMENT DEPARTMENT - HOUSING DIVISION 300 Forest Avenue, Pacific Grove CA [email protected], Phone: (831) MEMORANDUM TO: FROM: Mayor and City Council, Panning Commission Housing Division DATE: May 1, 2014 SUBJECT: 2014 INCOME GUIDELINES FOR HOUSING PROGRAMS The following table shows the recently received HUD guidelines for determining income levels in Pacific Grove effective May 1, Income levels are used to define eligibility in various City housing programs. These figures will be used until updated by HUD in Note: AMI = Area Median Income (Monterey County) HOUSEHOLD SIZE EXTREMELY LOW (30% AMI) Annual 15,100 17,250 19,400 21,550 23,300 25,000 Monthly 1,258 1,438 1,617 1,796 1,942 2,083 30% of Monthly VERY LOW INCOME (50% AMI) Annual 25,200 28,800 32,400 35,950 38,850 41,750 Monthly 2,100 2,400 2,700 2,996 3,238 3,479 30% of Monthly ,044 LOWER INCOME (60% AMI) Annual 30,240 34,560 38,880 43,140 46,620 50,100 Monthly 2,520 2,880 3,240 3,595 3,885 4,175 30% of Monthly ,079 1,166 1,253 LOW INCOME (80% AMI) Annual 40,250 46,000 51,750 57,500 62,100 66,700 Monthly 3,354 3,833 4,313 4,792 5,175 5,558 30% of Monthly 1,006 1,150 1,294 1,438 1,553 1,668 AREA MEDIAN INCOME (100%) Annual 48,100 54,950 61,850 68,700 74,200 79,700 Monthly 4,008 4,579 5,154 5,725 6,183 6,642 30% of Monthly 1,203 1,374 1,546 1,718 1,855 1,993 MODERATE (120% AMI) Annual 57,700 65,950 74,200 82,450 89,050 95,650 Monthly 4,808 5,496 6,183 6,871 7,421 7,971 30% of Monthly 1,443 1,649 1,855 2,061 2,226 2,391 cc: City Manager, Finance, CDD Staff