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HomeMy WebLinkAboutCC_2020_11_10_AgendaPacket CITY OF ATASCADERO CITY COUNCIL AGENDA * COVID-19 NOTICE * Consistent with Executive Orders N-25-20 and No. N-29-20 from the Executive Department of the State of California and the San Luis Obispo County Health Official’s March 18, 2020 Shelter at Home Order, the City Council Meeting will not be physically open to the public and City Council Members will be teleconferencing into the meeting. HOW TO OBSERVE THE MEETING: To maximize public safety while still maintaining transparency and public access, the meeting will be live-streamed on SLO-SPAN.org, on Spectrum cable Channel 20 in Atascadero, and on KPRL Radio 1230AM. The video recording of the meeting will repeat daily on Channel 20 at 1:00 am, 9:00 am, and 6:00 pm and will be available through the City’s website or by visiting https://attendee.gotowebinar.com/rt/8539114475191636236. HOW TO SUBMIT PUBLIC COMMENT: Members of the public are highly encouraged to call 805-538-2888 to listen and provide public comment via phone, or submit written public comments to cityclerk@atascadero.org by 5:00 pm on the day of the meeting. Such email comments must identify the Agenda Item Number in the subject line of the email. The comments will be read into the record, with a maximum allowance of 3 minutes per individual comment, subject to the Mayor’s discretion. All comments should be a maximum of 500 words, which corresponds to approximately 3 minutes of speaking time. If a comment is received after the agenda item is heard but before the close of the meeting, the comment will still be included as a part of the record of the meeting but will not be read into the record. AMERICAN DISABILITY ACT ACCOMMODATIONS: Any member of the public who needs accommodations should contact the City Clerk’s Office at cityclerk@atascadero.org or by calling 805-470-3400 at least 48 hours prior to the meeting or time when services are needed. The City will us e their best efforts to provide reasonable accommodations to afford as much accessibility as possible while also maintaining public safety in accordance with the City procedure for resolving reasonable accommodation requests. City Council agendas and minutes may be viewed on the City's website: www.atascadero.org. Copies of the staff reports or other documentation relating to each item of business referred to on the Agenda are on file in the office of the City Clerk and are available for public inspection on our website, www.atascadero.org. Contracts, Resolutions and Ordinances will be allocated a number once they are approved by the City Council. The Minutes of this meeting will reflect these numbers. All documents submitted by the public during Council meetings that are either read into the record or referred to in their statement will be noted in the Minutes and available for review by contacting the City Clerk's office. All documents will be available for public inspection during City Hall business hours once City Hall is open to the public following the termination of the Shelter at Home Order. Page 1 of 216 CITY OF ATASCADERO CITY COUNCIL AGENDA Tuesday, November 10, 2020 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California REGULAR SESSION – CALL TO ORDER: 6:00 P.M. PLEDGE OF ALLEGIANCE: Council Member Funk ROLL CALL: Mayor Moreno Mayor Pro Tem Bourbeau Council Member Fonzi Council Member Funk Council Member Newsom APPROVAL OF AGENDA: Roll Call Recommendation: Council: 1. Approve this agenda; and 2. Waive the reading in full of all ordinances appearing on this agenda, and the titles of the ordinances will be read aloud by the City Clerk at the first reading, after the motion and before the City Council votes. PRESENTATIONS: None. A. CONSENT CALENDAR: (All items on the consent calendar are considered to be routine and non-controversial by City staff and will be approved by one motion if no member of the Council or public wishes to comment or ask questions. If comment or discussion is desired by anyone, the item will be removed from the Consent Calendar and will be considered in the listed sequence with an opportunity for any member of the public to address the Council concerning the item before action is taken.) 1. City Council Draft Action Minutes – October 27, 2020  Recommendation: Council approve the October 27, 2020 Draft City Council Regular Meeting Minutes. [City Clerk] City Council Regular Session: 6:00 P.M. Page 2 of 216 2. September 2020 Investment Report  Fiscal Impact: None  Recommendation: Council receive and file the City Treasurer’s report for quarter ending September 30, 2020. [City Treasurer] 3. Community Facilities District 2005-1 Annexation Nos. 21 & 22  Fiscal Impact: None. Assessments for the Curbaril annexation are estimated to be between $2,800 - $3,000 annually beginning in fiscal year 2021-2022, and adjusted each year for inflation. Assessments for the Grand Oaks Paseo annexation are estimated to be between $19,000 - $20,000 annually beginning in fiscal year 2021-2022, and adjusted each year for inflation. Deed restricted affordable units are exempt from the special tax.  Recommendations: Council: 1. Adopt on second reading, by title only, Draft Ordinance A, authorizing the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory identified as Annexation No. 21. 2. Adopt on second reading, by title only, Draft Ordinance B, authorizin g the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory identified as Annexation No. 22. [Community Development] 4. Regional Early Action Planning (REAP) Grant Program  Fiscal Impact: Adoption of the Draft Resolution will allow the City to receive up to $104,053 in jurisdictional REAP grant funds for City planning activities and allows the City to act as the lead agency for regional REAP grant funds in the amount of $181,000 to develop ADU stock plans.  Recommendation: Council approve Draft Resolution authorizing application for and entering into agreements for the Regional Early Action Planning (REAP) Grant program funds with the San Luis Obispo Council of Governments (SLOCOG) and Association of Monterey Bay Area Governments (AMBAG). [Community Development] UPDATES FROM THE CITY MANAGER: (The City Manager will give an oral report on any current issues of concern to the City Council.) COMMUNITY FORUM: (This portion of the meeting is reserved for persons wanti ng to address the Council on any matter not on this agenda and over which the Council has jurisdiction. Speakers are limited to three minutes. Please state your name for the record before making your presentation. Comments made during Community Forum will not be a subject of discussion. A maximum of 30 minutes will be allowed for Community Forum, unless changed by the Council. Any members of the public who have questions or need information may contact the City Clerk’s Office, between the hours of 8:30 a.m . and 5:00 p.m. at (805) 470-3400, or cityclerk@atascadero.org.) Page 3 of 216 B. PUBLIC HEARINGS: 1. 2021-2028 Housing Element Final Draft Plan (CPP19-0067)  Fiscal Impact: None. While review of potential Housing Element policies does not have a direct fiscal impact, changes in land-use policies will generally produce an overall positive or negative fiscal impact for the City depending on the policy.  Recommendation: Council adopt Draft Resolution, adopting the 2021-2028 Housing Element and submit the element to the State for certification, based on findings. [Community Development] C. MANAGEMENT REPORTS: 1. Atascadero Mall Plaza Construction Award  Fiscal Impact: $1,091,700.00  Recommendations: Council: 1. Council discuss and direct staff on desired design revisions for the Atascadero Mall Plaza Project. 2. Authorize the City Manager to execute a contract with Kirk Construction in an amount not to exceed $819,344.50 for the construction of the Atascadero Mall Plaza Project subject to project design revisions as identified by Council 3. Authorize the Director of Administrative Services to appropriate up to an additional $616,700 in Public Facilities Fees Fund balance for FY20/21 toward the Atascadero Mall Plaza project subject to project design revisions as identified by Council. [Public Works] D. DISCUSSION ITEM: Discussion of COVID 19 issues including oral updates by Mayor Moreno and City Manager Rickard, questions by City Council, public comment and comments by City Council. 1. Coronavirus (COVID-19) update – Mayor Moreno 2. Coronavirus (COVID-19) update – City Manager Rickard E. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS: (On their own initiative, Council Members may make a brief announcement or a brief report on their own activities. The following represent standing committees. Informative status reports will be given, as felt necessary): Mayor Moreno 1. City Selection Committee 2. County Mayors Round Table 3. Economic Vitality Corporation, Board of Directors (EVC) 4. SLO Council of Governments (SLOCOG) 5. SLO Regional Transit Authority (RTA) Page 4 of 216 Mayor Pro Tem Bourbeau 1. City / Schools Committee 2. City of Atascadero Finance Committee 3. Integrated Waste Management Authority (IWMA) 4. SLO County Water Resources Advisory Committee (WRAC) Council Member Fonzi 1. Air Pollution Control District 2. Atascadero Basin Ground Water Sustainability Agency (GSA) 3. City of Atascadero Design Review Committee 4. SLO Local Agency Formation Commission (LAFCo) Council Member Funk 1. City of Atascadero Finance Committee 2. Homeless Services Oversight Council 3. League of California Cities – Council Liaison Council Member Newsom 1. California Joint Powers Insurance Authority (CJPIA) Board 2. City / Schools Committee 3. City of Atascadero Design Review Committee 4. Visit SLO CAL Advisory Committee F. INDIVIDUAL DETERMINATION AND / OR ACTION: (Council Members may ask a question for clarification, make a referral to staff or take action to have staff place a matter of business on a future agenda. The Council may take action on items listed on the Agenda.) 1. City Council 2. City Clerk 3. City Treasurer 4. City Attorney 5. City Manager ADJOURN Please note: Should anyone challenge any proposed development entitlement listed on this Agenda in court, that person may be limited to raising those issues addressed at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to this public hearing. Correspondence submitted at this public hearing will be distributed to the Council and available for review in t he City Clerk's office. Page 5 of 216 ITEM NUMBER: A-1 DATE: 11/10/20 Atascadero City Council October 27, 2020 Page 1 of 6 CITY OF ATASCADERO CITY COUNCIL DRAFT MINUTES Tuesday, October 27, 2020 City Hall Council Chambers, 4th floor 6500 Palma Avenue, Atascadero, California REGULAR SESSION – CALL TO ORDER: 6:00 P.M. Mayor Moreno called the meeting to order at 6:00 p.m. and Council Member Newsom led the Pledge of Allegiance. ROLL CALL: Present: By Teleconference - Council Members Fonzi, Funk, and Newsom, Mayor Pro Tem Bourbeau, and Mayor Moreno Absent: None Others Present: Treasurer Gere Sibbach Staff Present: By Teleconference – City Manager Rachelle Rickard, Interim Police Chief Bob Molle, Fire Chief Casey Bryson, Administrative Services Director Jeri Rangel, Public Works Director Nick DeBar, Community Development Director Phil Dunsmore, City Attorney Brian Pierik, Deputy City Manager/City Clerk Lara Christensen, and IT Manager Luke Knight APPROVAL OF AGENDA: MOTION: By Council Member Funk and seconded by Council Member Newsom to: 1. Approve this agenda; and, 2. Waive the reading in full of all ordinances appearing on this agenda, and the titles of the ordinances will be read aloud by the City Clerk at the first reading, after the motion and before the City Council votes. Motion passed 5:0 by a roll-call vote. City Council Regular Session: 6:00 P.M. Page 6 of 216 ITEM NUMBER: A-1 DATE: 11/10/20 Atascadero City Council October 27, 2020 Page 2 of 6 PRESENTATIONS: 1. Proclamation proclaiming October 2020 Domestic Violence Awareness Month Mayor Pro Tem Bourbeau, on behalf of the City Council, presented the proclamation to R.I.S.E. A. CONSENT CALENDAR: 1. City Council Draft Action Minutes – October 13, 2020  Recommendation: Council approve the October 13, 2020 Draft City Council Regular Meeting Minutes. [City Clerk] 2. September 2020 Accounts Payable and Payroll  Fiscal Impact: $2,606,854.77  Recommendation: Council approve certified City accounts payable, payroll and payroll vendor checks for September 2020. [Administrative Services] 3. Parcel Map AT 19-0017 9040 San Diego Road and 9081 La Paz Lane  Fiscal Impact: None.  Recommendations: Council: 1. Approve Parcel Map AT 19-0017. 2. Accept, on behalf of the public, the offer of dedication for two six-foot Public Utility Easements along San Diego Road and La Paz Lane. 3. Reject, without prejudice, a twenty-five foot wide offer of dedication for public road purposes on La Paz Lane. [Public Works] MOTION: By Council Member Fonzi and seconded by Council Member Funk to approve the Consent Calendar. Motion passed 5:0 by a roll-call vote. UPDATES FROM THE CITY MANAGER: City Manager Rachelle Rickard gave an update on projects and issues within the City. COMMUNITY FORUM: The following citizens spoke by telephone during Community Forum: Geoff Auslen, Treasurer Gere Sibbach, Josh Cross, Gina Cirocco Emails from the following citizens were read into the record by Deputy City Manager/City Clerk Christensen: Eric and Christy Wilkins B. PUBLIC HEARINGS: 1. Community Facilities District 2005-1 Annexation No. 21 and 22 (7900 Curbaril Ave.: AT 18-0111 & 4711 El Camino Real: Tract: 3141)  Fiscal Impact: Assessments for the Curbaril annexation are estimated to be between $2,800 - $3,000 annually beginning in fiscal year 2021-2022, and adjusted each year for inflation. Assessments for the Grand Oaks Paseo Page 7 of 216 ITEM NUMBER: A-1 DATE: 11/10/20 Atascadero City Council October 27, 2020 Page 3 of 6 annexation are estimated to be between $19,000 - $20,000 annually beginning in fiscal year 2021-2022, and adjusted each year for inflation. Deed restricted affordable units are exempt from the special tax.  Recommendations: Council: 1. Conduct the public hearings for the proposed annexations. 2. Adopt Draft Resolution A; authorizing the territory identified in City Council Resolution 2020-067 to be annexed into Community Facilities District No. 2005-1 (Public Services), authorizing the levy of a special tax and submitting the levy of a special tax to qualified electors. 3. Adopt Draft Resolution B; authorizing the territory identified in City Council Resolution 2020-068 to be annexed into Community Facilities District No. 2005-1 (Public Services), authorizing the levy of a special tax and submitting the levy of a special tax to qualified electors. 4. Direct the City Clerk to conduct a landowner vote of annexations and collect and count the ballots. Council to recess until ballots are counted 5. Adopt Draft Resolution C, declaring the results of a special annexation landowner election for Annexation No. 21, determining the validity of prior proceedings and directing the recording of an amendment to the notice of special tax lien. 6. Adopt Draft Resolution D, declaring the results of a special annexation landowner election for Annexation No. 22, determining the validity of prior proceedings and directing the recording of an amendment to the notice of special tax lien. 7. Introduce for first reading, by title only, Draft Ordinance A, authorizing the levy of special taxes in Community Facilities District 2005-1 (Public Services), for certain annexation territory identified as Annexation No. 21. 8. Introduce for first reading, by title only, Draft Ordinance B, authorizing the levy of special taxes in Community Facilities District 2005-1 (Public Services), for certain annexation territory identified as Annexation No. 22. [Community Development] Ex Parte Communications The Council Members reported having no communications on this item. Community Development Director Dunsmore gave the staff report and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: None. Mayor Moreno closed the Public Comment period. MOTION: By Council Member Fonzi and seconded by Council Member Newsom to: 1. Adopt Draft Resolution 2020-074 authorizing the territory identified in City Council Resolution 2020-067 to be annexed into Community Facilities District No. 2005-1 (Public Services), Page 8 of 216 ITEM NUMBER: A-1 DATE: 11/10/20 Atascadero City Council October 27, 2020 Page 4 of 6 authorizing the levy of a special tax and submitting the levy of a special tax to qualified electors. 2. Adopt Draft Resolution 2020-075 authorizing the territory identified in City Council Resolution 2020-068 to be annexed into Community Facilities District No. 2005-1 (Public Services), authorizing the levy of a special tax and submitting the levy of a special tax to qualified electors. 3. Direct the City Clerk to conduct a landowner vote of annexations and collect and count the ballots. Motion passed 5:0 by a roll-call vote. For Annexation No. 21, Deputy City Manager/City Clerk Christensen announced that one vote (one ballot) was received and was in favor. For Annexation No. 22, Deputy City Manager/City Clerk Christensen announced that two votes (one ballot) was received and were all in favor. MOTION: By Council Member Fonzi and seconded by Council Member Funk to: 4. Adopt Draft Resolution 2020-076 declaring the results of a special annexation landowner election for Annexation No. 21, determining the validity of prior proceedings and directing the recording of an amendment to the notice of special tax lien. 5. Adopt Draft Resolution 2020-077 declaring the results of a special annexation landowner election for Annexation No. 22, determining the validity of prior proceedings and directing the recording of an amendment to the notice of special tax lien. 6. Introduce for first reading, by title only, Draft Ordinance A, authorizing the levy of special taxes in Community Facilities District 2005-1 (Public Services), for certain annexation territory identified as Annexation No. 21. 7. Introduce for first reading, by title only, Draft Ordinance B, authorizing the levy of special taxes in Community Facilities District 2005-1 (Public Services), for certain annexation territory identified as Annexation No. 22. Deputy City Manager/City Clerk Christensen read the title of Draft Ordinance A: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL TAXES IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES), INCLUDING CERTAIN ANNEXATION TERRITORY Deputy City Manager/City Clerk Christensen read the title of Draft Ordinance B: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL TAXES IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES), INCLUDING CERTAIN ANNEXATION TERRITORY Motion passed 5:0 by a roll-call vote. Page 9 of 216 ITEM NUMBER: A-1 DATE: 11/10/20 Atascadero City Council October 27, 2020 Page 5 of 6 C. MANAGEMENT REPORTS: None. D. DISCUSSION ITEM: Discussion of COVID 19 issues including oral updates by Mayor Moreno and City Manager Rickard, questions by City Council, public comment and comments by City Council. 1. Coronavirus (COVID-19) update – Mayor Moreno 2. Coronavirus (COVID-19) update – City Manager Rickard Mayor Moreno provided updates on Coronavirus (COVID-19) and answered questions from the Council. PUBLIC COMMENT: The following citizens spoke on this item: None. Mayor Moreno closed the Public Comment period. E. COUNCIL ANNOUNCEMENTS AND COMMITTEE REPORTS: The following Council Members made brief announcements and gave brief update reports on their committees since their last Council meeting: Mayor Moreno 1. Economic Vitality Corporation, Board of Directors (EVC) Mayor Pro Tem Bourbeau 1. Integrated Waste Management Authority (IWMA) Council Member Fonzi 1. SLO Local Agency Formation Commission (LAFCo) Council Member Funk 1. Homeless Services Oversight Council Council Member Newsom 1. California Joint Powers Insurance Authority (CJPIA) Board 2. City of Atascadero Design Review Committee F. INDIVIDUAL DETERMINATION AND / OR ACTION: None G. ADJOURN Mayor Moreno adjourned the meeting at 7:01 p.m. Page 10 of 216 ITEM NUMBER: A-1 DATE: 11/10/20 Atascadero City Council October 27, 2020 Page 6 of 6 MINUTES PREPARED BY: ______________________________________ Lara K. Christensen Deputy City Manager/City Clerk APPROVED: Page 11 of 216 ITEM NUMBER: A-2DATE: 11/10/20Page 12 of 216 ITEM NUMBER: A-2DATE: 11/10/20Page 13 of 216 ITEM NUMBER: A-2DATE: 11/10/20Page 14 of 216 ITEM NUMBER: A-2 DATE: 11/10/20 Page 15 of 216 ITEM NUMBER: A-2 DATE: 11/10/20 Page 16 of 216 ITEM NUMBER: A-2 DATE: 11/10/20 Page 17 of 216 ITEM NUMBER: A-2 DATE: 11/10/20 Page 18 of 216 ITEM NUMBER: A-2 DATE: 11/10/20 Page 19 of 216 ITEM NUMBER: A-2 DATE: 11/10/20 Page 20 of 216 ITEM NUMBER: A-2DATE: 11/10/20Page 21 of 216 ITEM NUMBER: A-2DATE: 11/10/20Page 22 of 216 ITEM NUMBER: A-2DATE: 11/10/20Page 23 of 216 ITEM NUMBER: A-2DATE: 11/10/20Page 24 of 216 ITEM NUMBER: A-3 DATE: 11/10/20 Atascadero City Council Staff Report – Community Development Department Community Facilities District 2005-1 Annexation Nos. 21 & 22 RECOMMENDATIONS: Council: 1. Adopt on second reading, by title only, Draft Ordinance A, authorizing the levy of special taxes in Community Facilities District 2005-1 for certain annexation territory identified as Annexation No. 21. 2. Adopt on second reading, by title only, Draft Ordinance B, authorizing the levy of special taxes in Community Facilities District 2005 -1 for certain annexation territory identified as Annexation No. 22. DISCUSSION: This action consists of authorizing the levy of special taxes in Community Facilities District (CFD) 2005-1 for two newly annexed areas known as the Curbaril Planned Development (Annexation No. 21) and the Grand Oak Paseo Development (Annexation No. 22). This is a second reading of the proposed Ordinances and is required to formalize the annexations. On October 27, 2020, the City Council held a public hearing on annexing the territories identified as Annexation Nos. 21 and 22 into the City’s Community Facilities District 2005-1. After the close of the public hearing, the City Council adopted Resolution No. 2020-074 (presented as Draft Resolution A as part of the October 27, 2020 staff report) and Resolution No. 2020-075 (presented as Resolution B as part of the October 27, 2020 staff report). These annexations were each authorized by Council on a 5-0 vote. A landowner election was then held, and the landowners elected to authorize a special CFD tax and approved the annexation s. Following the elections, the Council adopted Resolutions declaring the results of the election and introduced two Draft Ordinances (Attachments 1 and 2) to authorize the levy of a CFD fee to all future property owners residing in Annexation Nos. 21 and 22 territories. These Draft Ordinances are before the Council for final approval tonight. The Special Tax levied against Single-Family Residential parcels for Fiscal Year 2020-2021 was $706.68 per parcel, which is subject to an annual escalator to pay for the service expansion needed to serve these additional residential units . The money Page 25 of 216 ITEM NUMBER: A-3 DATE: 11/10/20 collected can only be used to fund new public services authorized to be funded by the State Mello-Roos Act and identified within the Rate and Method of Apportionment, and cannot be used to support existing services. Adoption of these Ordinances, on second reading, will complete the CFD process and allow for the Final Map s to be recorded. FISCAL IMPACT: Assessments for the Curbaril annexation are estimated to be between $2,800 - $3,000 annually beginning in fiscal year 2021 -2022, and adjusted each year for inflation. Assessments for the Grand Oaks Paseo annexation are estimated to be between $19,000 - $20,000 annually beginning in fiscal year 2021-2022, and adjusted each year for inflation. Deed restricted affordable units are exempt from the special tax. ATTACHMENTS: 1. Draft Ordinance A 2. Draft Ordinance B Page 26 of 216 ITEM NUMBER: A-3 DATE: ATTACHMENT: 11/10/20 1 DRAFT ORDINANCE A AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL TAXES IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES), INCLUDING CERTAIN ANNEXATION TERRITORY WHEREAS, the City of Atascadero (the “City”) has conducted proceedings pursuant to the “Mello-Roos Community Facilities Act of l982”, being Chapter 2.5, Part l Division 2, Title 5 of the Government Code of the State of California (the “Act”) and the City of Atascadero Community Facilities District No. 2005-1 (Public Services) Ordinance enacted pursuant to the powers reserved by the City of Atascadero under Sections 3, 5, and 7 of Article XI of the Constitution of the State of California (the “CFD Ordinance”) (the Act and the CFD Ordinance may be referred to collectively as the “Community Facilities District Law”), to establish the City of Atascadero Community Facilities District No. 2005-1 (Public Services) (the “District”) for the purpose of financing police services, fire protection and suppression services, and park services (the “Services”) as provided in the Act; and WHEREAS, the rate and method of apportionment of special tax for the District is set forth in Exhibit B to the City Council Resolution entitled “A Resolution of the City Council of the City of Atascadero, California, For the Formation of Community Facilities District No. 2005-l (Public Services” (the “Resolution of Formation”), which was adopted on May 24, 2005; and WHEREAS, the City has conducted proceedings to annex territory into the District and, with respect to the proceedings, following an election of the qualified electors in the territory proposed for annexation (the “Annexation Territory”), the City Council, on October 27, 2020, adopted a Resolution entitled “Resolution of the City Council of the City of Atascadero, California, Declaring the Results of Special Annexation Landowner Election, Determining Validity of Prior Proceedings, and Directing the Recording of an Amendment to Notice of Special Tax Lien.” NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY ORDAINS AS FOLLOWS: SECTION 1. The above recitals are true and correct. SECTION 2. By the passage of this Ordinance, the City Council hereby authorizes and levies the special tax within the District, including the Annexation Territory, pursuant to the Community Facilities District Law, at the rate and in accordance with the rate and method of apportionment of special tax set forth in the Resolution of Formation, which rate and method is on file in the City Clerk’s Office and incorporated herein by reference. The special tax has previously been levied in the original territory of the District beginning in Fiscal Year 2006-07 pursuant to Ordinance No. 478 passed and adopted by the City Council on July 12, 2005 and the special tax is hereby levied commencing in Fiscal Year 2021-22 in the District, including the Annexation Territory, and in each fiscal year thereafter to pay for the Services for the District and all costs of administering the District. Page 27 of 216 ITEM NUMBER: A-3 DATE: ATTACHMENT: 11/10/20 1 SECTION 3. The City’s Finance Director or designee or employee or consultant of the City is hereby authorized and directed each fiscal year to determine the specific special tax to be levied for the next ensuing fiscal year for each parcel of real property within the District, including the Annexation Territory, in the manner and as provided in the Resolution of Formation. SECTION 4. Exemptions from the levy of the special tax shall be as provided in the Resolution of Formation and the applicable provisions of the Community Facilities District Law. In no event shall the special tax be levied on any parcel within the District in excess of the maximum special tax specified in the Resolution of Formation. SECTION 5. All of the collections of the special tax shall be used as provided in the Community Facilities District Law and in the Resolution of Formation, including, but not limited to, the payment of the costs of the Services, the payment of the costs of the City in administering the District, and the costs of collecting and administering the special tax. SECTION 6. The special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the City Council may provide for other appropriate methods of collection by resolution(s) of the City Council. The Finance Director of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of San Luis Obispo in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured property tax roll of the County of San Luis Obispo for Fiscal Year 2021-22 and for each fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated by the City. SECTION 7. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District, including the Annexation Territory, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the District, including the Annexation Territory, shall not be affected. SECTION 8. A summary of this Ordinance, approved by the City Attorney, together with the ayes and noes, shall be published twice: at least five days prior to its final passage and before the expiration of fifteen (15) days after its final passage, in accordance with California law. A copy of the full text of this Ordinance shall be on file in the City Clerk’s Office on and after the date following introduction and passage and shall be available to any interested member of the public. SECTION 9. This Ordinance shall take effect 30 days from the date of final passage. Page 28 of 216 ITEM NUMBER: A-3 DATE: ATTACHMENT: 11/10/20 1 INTRODUCED at a regular meeting of the City Council held on October 27, 2020 and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on November 10, 2020. CITY OF ATASCADERO ____________________________________ Heather Moreno, Mayor ATTEST: ______________________________________ Lara K. Christensen, City Clerk APPROVED AS TO FORM: ______________________________________ Brian A. Pierik, City Attorney Page 29 of 216 ITEM NUMBER: A-3 DATE: ATTACHMENT: 11/10/20 2 DRAFT ORDINANCE B AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AUTHORIZING THE LEVY OF SPECIAL TAXES IN COMMUNITY FACILITIES DISTRICT NO. 2005-1 (PUBLIC SERVICES), INCLUDING CERTAIN ANNEXATION TERRITORY WHEREAS, the City of Atascadero (the “City”) has conducted proceedings pursuant to the “Mello-Roos Community Facilities Act of l982”, being Chapter 2.5, Part l Division 2, Title 5 of the Government Code of the State of California (the “Act”) and the City of Atascadero Community Facilities District No. 2005-1 (Public Services) Ordinance enacted pursuant to the powers reserved by the City of Atascadero under Sections 3, 5, and 7 of Article XI of the Constitution of the State of California (the “CFD Ordinance”) (the Act and the CFD Ordinance may be referred to collectively as the “Community Facilities District Law”), to establish the City of Atascadero Community Facilities District No. 2005-1 (Public Services) (the “District”) for the purpose of financing police services, fire protection and suppression services, and park services (the “Services”) as provided in the Act; and WHEREAS, the rate and method of apportionment of special tax for the District is set forth in Exhibit B to the City Council Resolution entitled “A Resolution of the City Council of the City of Atascadero, California, For the Formation of Community Facilities District No. 2005-l (Public Services” (the “Resolution of Formation”), which was adopted on May 24, 2005; and WHEREAS, the City has conducted proceedings to annex territory into the District and, with respect to the proceedings, following an election of the qualified electors in the territory proposed for annexation (the “Annexation Territory”), the City Council, on October 27, 2020, adopted a Resolution entitled “Resolution of the City Council of the City of Atascadero, California, Declaring the Results of Special Annexation Landowner Election, Determining Validity of Prior Proceedings, and Directing the Recording of an Amendment to Notice of Special Tax Lien.” NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ATASCADERO HEREBY ORDAINS AS FOLLOWS: SECTION 1. The above recitals are true and correct. SECTION 2. By the passage of this Ordinance, the City Council hereby authorizes and levies the special tax within the District, including the Annexation Territory, pursuant to the Community Facilities District Law, at the rate and in accordance with the rate and method of apportionment of special tax set forth in the Resolution of Formation, which rate and method is on file in the City Clerk’s Office and incorporated herein by reference. The special tax has previously been levied in the original territory of the District beginning in Fiscal Year 2006-07 pursuant to Ordinance No. 478 passed and adopted by the City Council on July 12, 2005 and the special tax is hereby levied commencing in Fiscal Year 2021-22 in the District, including the Annexation Territory, and in each fiscal year thereafter to pay for the Services for the District and all costs of administering the District. Page 30 of 216 ITEM NUMBER: A-3 DATE: ATTACHMENT: 11/10/20 2 SECTION 3. The City’s Finance Director or designee or employee or consultant of the City is hereby authorized and directed each fiscal year to determine the specific special tax to be levied for the next ensuing fiscal year for each parcel of real property within the District, including the Annexation Territory, in the manner and as provided in the Resolution of Formation. SECTION 4. Exemptions from the levy of the special tax shall be as provided in the Resolution of Formation and the applicable provisions of the Community Facilities District Law. In no event shall the special tax be levied on any parcel within the District in excess of the maximum special tax specified in the Resolution of Formation. SECTION 5. All of the collections of the special tax shall be used as provided in the Community Facilities District Law and in the Resolution of Formation, including, but not limited to, the payment of the costs of the Services, the payment of the costs of the City in administering the District, and the costs of collecting and administering the special tax. SECTION 6. The special tax shall be collected in the same manner as ordinary ad valorem taxes are collected and shall have the same lien priority, and be subject to the same penalties and the same procedure and sale in cases of delinquency as provided for ad valorem taxes; provided, however, that the City Council may provide for other appropriate methods of collection by resolution(s) of the City Council. The Finance Director of the City is hereby authorized and directed to provide all necessary information to the auditor/tax collector of the County of San Luis Obispo in order to effect proper billing and collection of the special tax, so that the special tax shall be included on the secured property tax roll of the County of San Luis Obispo for Fiscal Year 2021-22 and for each fiscal year thereafter until no longer required to pay for the Services or until otherwise terminated by the City. SECTION 7. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel within the District, including the Annexation Territory, by a court of competent jurisdiction, the balance of this Ordinance and the application of the special tax to the remaining parcels within the District, including the Annexation Territory, shall not be affected. SECTION 8. A summary of this Ordinance, approved by the City Attorney, together with the ayes and noes, shall be published twice: at least five days prior to its final passage and before the expiration of fifteen (15) days after its final passage, in accordance with California law. A copy of the full text of this Ordinance shall be on file in the City Clerk’s Office on and after the date following introduction and passage and shall be available to any interested member of the public. SECTION 9. This Ordinance shall take effect 30 days from the date of final passage. Page 31 of 216 ITEM NUMBER: A-3 DATE: ATTACHMENT: 11/10/20 2 INTRODUCED at a regular meeting of the City Council held on October 27, 2020 and PASSED and ADOPTED by the City Council of the City of Atascadero, State of California, on November 10, 2020 CITY OF ATASCADERO ____________________________________ Heather Moreno, Mayor ATTEST: ______________________________________ Lara K. Christensen, City Clerk APPROVED AS TO FORM: ______________________________________ Brian A. Pierik, City Attorney Page 32 of 216 ITEM NUMBER: A-4 DATE: 11/10/20 Atascadero City Council Staff Report - Community Development Department Regional Early Action Planning (REAP) Grant Program RECOMMENDATION: Council approve Draft Resolution authorizing application for and entering into agreements for the Regional Early Action Planning (REAP) Grant program funds with the San Luis Obispo Council of Governments (SLOCOG) and Association of Monterey Bay Area Governments (AMBAG). DISCUSSION: Over the past decade, the State of California has taken numerous policy and legislative actions accelerating housing production and facilitating compliance in implementing the sixth cycle of the Regional Housing Needs Allocation (RHNA). In the 2019-20 Budget Act, the State allocated more than $250 million to California jurisdictions for planning activities that accelerate housing production and increase capacity for housing. With the budget allocation, the Department of Housing and Community Development (HCD) established the Regional Early Action Planning (REAP) grant program with $118,750,000 for councils of governments and other regional entities throughout the State. The intent of the program is to provide funding to cities and counties through councils of governments and regional entities for the implementation of plans and processes that accelerate housing production and facilitate compliance in implementing the sixth cycle of the RHNA . The program provides grants through the multi-agency working groups established by HCD and maximum award amounts are based on jurisdiction size. The Central Coast Region Multiagency Working Group consists of the Association of Monterey Bay Area Governments, the San Luis Obispo Council of Governments, the Council of San Benito County Governments, and the Santa Barbara County Association of Governments. The Association of Monterey Bay Area Governments (AMBAG) has been selected to serve as the REAP fiscal agent of the multiagency working group The $1,421,468 allocated to the Multi Agency Working Group will be distributed through regional allocations for projects recommended by the San Luis Obispo Council of Governments (SLOCOG). The REAP Application requires a signed resolution (Attachment 1) from the local jurisdiction’s governing body, authorizing the submittal of funding applications to AMBAG and the ability to enter into an agreement with SLOCOG and AMBAG to receive funds. Atascadero is eligible to receive both regional and jurisdictional funding. Page 33 of 216 ITEM NUMBER: A-4 DATE: 11/10/20 Similar to the Local Early Action Plan (LEAP) award, that the City recently applied for, the REAP program funding is focused on helping jurisdictions implement programs to accelerate housing production and meet 6th Cycle Regional Housing Needs Allocation (RHNA) requirements. The REAP funding application will be directed towards implementing policies identified in the City’s 6th Cycle Housing Element and also support regional housing activities. As a reminder, the City is leveraging the following HCD funding opportunities below in order to fund housing related and land use planning activities, including the City’s 6th Cycle Housing Element.  Senate Bill 2 Planning Grants Program: $160,000. Funding secured for Housing Element and Inclusionary Housing policy updates.  LEAP (Local Early Action Planning): $150,000. Applied for funding to cover planning and Housing Element identified policy implementation.  REAP (Regional Early Action Planning) Regional: $181,000. Will be used to fund a regional project to develop stock Accessory Dwelling Unit (ADU) plans in collaboration with the Cities of Arroyo Grande, Morro Bay, and Grover Beach. The funding will primarily be used to cover consultant costs. City staff time will be fully reimbursed to manage grant and consultant.  REAP Jurisdictional: Approximately $104,053. Will be used to fund planning activities identified in the Housing Element, including Objective Design Standards and Subdivision Standards Update. Grant Purpose The primary goals of the REAP program, based on state-wide goals outlined in the 2019- 20 Budget Act, are to accelerate housing production and facilitate compliance to implement the sixth cycle of the RHNA. Eligible grant activities include a wide range of planning efforts or specific housing related projects with a significant community impact. Eligible REAP program activities include the following:  Accommodating development of housing and infrastruct ure that accelerates housing production that aligns with State planning priorities, housing, transportation, equity, and climate goals.  Implementing sustainable communities’ strategies related to housing planning and accelerating housing production.  Establishing Pro-housing Policies pursuant to Government Code section 65589.9.  Providing technical assistance in improving housing permitting processes, tracking systems, and planning tools.  Establishing regional or countywide housing trust funds for affordable housing (e.g. planning activities and processes, guidelines, charters).  Performing infrastructure planning, including sewers, water systems, transit, roads, or other public facilities necessary to support new housing and new residents.  Performing feasibility studies to determine the most efficient locations to site housing consistent with Government Code sections 65040.1 (State Planning Priorities) and 65080 (Regional Transportation Plans).  Covering the costs of temporary staffing or consultant nee ds associated with eligible activities. Page 34 of 216 ITEM NUMBER: A-4 DATE: 11/10/20  Covering the cost of technical assistance, planning, temporary staffing, or consultant needs associated with updating local planning and zoning documents, expediting application processing, and other actions to accelerate additional housing production. City Proposed Grant Activities At this time, City staff are proposing to utilize the jurisdictional REAP grant opportunity to fund the implementation of policies identified in the 6th Cycle Housing Element update. The SB2 grant received in 2019 will be used entirely to fund the Housing Element and begin work toward developing a Citywide inclusionary housing strategy, and will not have sufficient funding to cover additional SB grant identified activities . Therefore, staff is proposing to utilize REAP grant funds to cover costs for the additional activities identified in SB 2 and programs identified in the 6th Cycle Housing Element update. The list below may also be modified or expanded based on community and City Council input so long as the goals are consistent with the eligible REAP activities. For the jurisdictional REAP allocation, staff is proposing to utilize $104,053 to implement the following policies identified in SB2 and which were included as programs in the 6th Cycle Housing Element:  Adoption of objective Design Standards in lieu of a Conditional Use Permit process. Developing objective design standards that facilitate streamlined permitting in compliance with the Housing Accountability Act. Objective design standards establish specific design criteria for housing projects instead of leaving such design criteria up to a discretionary process. Objective design standards will allow the City to provide local guidance on site design and architecture for by-right projects permitted by state law, such as affordable housing projects. Adoption of objective design standards will facilitate high-quality residential development while also ensuring compliance with state objectives. These standards may include guidance on private open space, parking, and related features but will focus on ensuring consistency and community compatibility in architectural design. The development of objective design standards will include an assessment of how the standards can encourage a variety of housing types and limit the size of residential units on multi-family zoned properties to encourage units that are affordable by design.  Subdivision Ordinance Update. This involves the creation of a streamlined process to review “small lot subdivisions”. The adoption of small lot standards would allow large multi-family parcels to develop and subdivide with small lot developments similar to a planned development. This would allow for private ownership of small lots in multi-family districts subject to specific design standards that ensure neighborhood compatibility, adequate amenities and quality architecture. This update would allow for lots of any size or shape in multi-family districts, (subject to specific development standards), thereby encouraging the redevelopment of underutilized residential sites and encouraging affordable by design projects. The adoption of small lot subdivision standards may also incorporate specific site and building development standards, such as parking, height, and architecture, in exchange for flexible minimum lot sizes that will allow for creative use of site and constrained parcels. Additionally, small lot subdivisions Page 35 of 216 ITEM NUMBER: A-4 DATE: 11/10/20 can help eliminate the need for an extensive rezoning process that can delay entitlement and include substantial additional cost for an applicant. A typical small lot subdivision ordinance includes a specific set of quality standards that pre determine minimum outdoor yard area, minimum site amenities, minimum architectural requirements, and appropriate neighborhood compatibility. All of these attributes can be designed in a fashion that is similar or better than a typical planned development.  Zoning Ordinance Update. The Housing Element calls for updates to the City’s Zoning regulations to address Agricultural Zoning in residential zones and to clarify that only hobby related ag uses are allowed in residential districts. Additionally, there are opportunities to streamline the zoning ordinance by potentially reducing the review level for accessory structures, and updates to the City Zoning Code to respond to changes in state law Associated with Accessory Dwelling Units.  CEQA Thresholds/Streamlining. The REAP grant may be used for the development of local CEQA thresholds and to adopt local standards regarding VMT (Vehicle Miles Travelled) and GHG (Greenhouse Gas Emissions). Adopting local thresholds will help the City to streamline the environmental review process for development projects. In addition to the jurisdictional REAP allocation, the City will act as the “lead agency” with the cities of Morro Bay, Grover Beach, and Arroyo Grande to help develop stock ADU plans as further described below. Atascadero will serve as the fiscal agent for this opportunity and staff time will be fully reimbursed. The project has been awarded $181,000 in funding by SLOCOG to cover staff and consultant costs.  Pre-Approved Stock plans for Accessory Dwelling Units: Will include the development of accessory dwelling unit (ADU) pre-approved standard construction plans with the partner agencies of the Cities of Arroyo Grande, Grover Beach, and Morro Bay to help facilitate ADU construction and meet RHNA allocation goals. A consultant will be retained to develop a series of ready to go construction plans for ADUs to be pre-approved by the permitting jurisdictions. The intent of the project is to produce a variety of unit sizes, including studios, one -bedroom, and two- bedroom units to meet the needs of each community involved and provide a range of options that are considered affordable by design. Plans will include a variety of architectural styles. REAP program funds can be expended through 2023. The primary result of the funding will be updates to Title 9: Zoning and Planning and Title 11: Subdivision regulations, and the development of regional pre-approved ADU stock plans. These City and regional efforts are anticipated to cost up to $285,053. All grant activities, including staff time and consultant costs, will be fully funded by the grant and a detailed budget for the REAP funds will be finalized once allocations are finalized. The City Council may provide staff direction on other activities that could be pursued by the grant such as studies and plans related to a future General Plan update. Page 36 of 216 ITEM NUMBER: A-4 DATE: 11/10/20 ENVIRONMENTAL REVIEW: The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT: Adoption of the attached resolution will allow the City to receive up to $104,053 in jurisdictional REAP grant funds for City planning activities and allows the City to act as the lead agency for regional REAP grant funds in the amount of $181,000 to develop ADU stock plans. ALTERNATIVES: 1. Recommend alternative grant funded activities consistent with REAP guidelines. 2. Continue the recommendation to a later meeting. This alternative is not recommended as jurisdictional applications will be due in December and the regional funding opportunity has been recommended for funding. ATTACHMENT: Draft Resolution Page 37 of 216 ITEM NUMBER: A-4 DATE: ATTACHMENT: 11/10/20 1 DRAFT RESOLUTION RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, AUTHORIZING APPLICATION FOR AND ENTERING INTO AGREEMENTS FOR THE REGIONAL EARLY ACTION PLANNING (REAP) GRANT PROGRAM FUNDS WITH THE SAN LUIS OBISPO COUNCIL OF GOVERNMENTS (SLOCOG) AND ASSOCIATION OF MONTEREY BAY AREA GOVERNMENTS (AMBAG) WHEREAS, Governor Gavin Newsom signed Assembly Bill 101 (AB 101) in September 2019, which established the Local Government Planning Support Grants Program which allocates $125 million in housing planning funds to regional entities throughout the State; and WHEREAS, the California Department of Housing and Community Development (HCD) has been assigned as the state agency overseeing this program; and WHEREAS, the provisions of AB 101 require that the California Central Coast’s Councils of Government form a Multi-Agency working group comprising three representatives from each of the region’s five counties to administer approximately $8 million in housing planning funds dedicated to the Central Coast region; and WHEREAS, the Central Coast Housing Working Group has been established as the multi-agency working group to administer these funds pursuant to AB 101; and WHEREAS, the Association of Monterey Bay Area Governments (AMBAG) will serve as the fiscal agent of the Central Coast Housing Working Group and will staff the group; and WHEREAS, AMBAG will use three percent of the AB 101 Central Coast regional funding to administer the mega regional grant program, staff the Central Coast Housing Working Group, provide required reporting, and provide oversight of the grant program from 2020 to 2023; and WHEREAS, AMBAG will allocate AB 101 housing planning funds to the four C ouncil of Governments in the Central Coast area: AMBAG, the San Luis Obispo Council of Governments, the Santa Barbara County Association of Governments, and the Council of San Benito County Governments; and WHEREAS, the City of Atascadero is eligible to submit a request for allocation of a portion of Central California AB 101 housing planning funds from AMBAG; and WHEREAS, the amounts allocated to AMBAG are based on the allocation method approved by the Central Coast Housing Working Group; and Page 38 of 216 ITEM NUMBER: A-4 DATE: ATTACHMENT: 11/10/20 1 WHEREAS, the amounts allocated to City of Atascadero will be based on the allocation method approved by AMBAG; and WHEREAS, AMBAG shall approve allocation requests subject to the terms and conditions of eligibility, guidelines, Notices of Funding Availability, and program requirements. NOW, THEREFORE BE IT RESOLVED, by the Council of the City of Atascadero (“Applicant”): SECTION 1. The City Manager is hereby authorized and directed to apply for and submit to the Association of Monterey Bay Area Governments an Application package. SECTION 2. The City of Atascadero is hereby authorized to request an allocation not to exceed $285,053 from the Association of Monterey Bay Area Governments which acts on behalf of the Central Coast Housing Working Group. SECTION 3. The City of Atascadero is hereby authorized to enter into agreements, and take further actions as may be necessary to give effect to this Resolution, such as executing amendments and approving funding applications with the Association of Monterey Bay Area Governments and San Luis Obispo Council of Governments for REAP grant funding. PASSED AND ADOPTED on the 27th day of October 2020, by the City Council of Atascadero by the following vote count: On motion by Council Member_____ and seconded by Council Member ____, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: CITY OF ATASCADERO ______________________________ Heather Moreno, Mayor ATTEST: ______________________________________ Lara K. Christensen, City Clerk APPROVED AS TO FORM: ______________________________________ Brian A. Pierik, City Attorney Page 39 of 216 ITEM NUMBER: B-1 DATE: 11/10/20 Atascadero City Council Staff Report – Community Development Department 2021-2028 Housing Element Final Draft Plan (CPP19-0067) RECOMMENDATION: The Planning Commission recommends the City Council: Adopt Draft Resolution, adopting the 2021-2028 Housing Element and submit the element to the State for certification, based on findings. REPORT-IN-BRIEF: This review represents the final stage in the City’s adoption of the General Plan Housing Element. The State accepted Atascadero’s Housing Element on September 21, 2020 and found that it meets the statutory requirements of State Housing Element Law. The Housing Element is one of seven State mandated elements (chapters) of the City’s General Plan. The State requires that Housing Elements be updated and certified regularly to reflect the most recent trends in demographics and employment that may affect existing and future housing demand and supply. Atascadero previously updated the General Plan Housing Element in 2014, and a new Housing Element must now be completed, reviewed and certified by the State Department of Housing and Community Development (HCD), and adopted prior to December 2020. The Draft Housing Element has been prepared, reviewed and preliminarily accepted by the State for adoption. The Housing Element is intended to outline goals and policies consistent with the City’s General Plan and community vision in addition to addressing State requirements and laws. Unlike the four year cycle with the previous Housing Element, the new Housing Element is on an eight year cycle and will encompass housing policies and programs to be implemented through the year 2028. After adoption by the City Council, the document will be submitted to the State for final certification. DISCUSSION: Background The City started the Housing Element update process in January of 2020. Since that time, the following has occurred: Page 40 of 216 ITEM NUMBER: B-1 DATE: 11/10/20  A joint Planning Commission and City Council hearing took place on January 28, 2020. At that time, the Consultant outlined the process and received comments.  In April 2020, the City Council reviewed the City’s Regional Housing Needs allocation (RHNA) and provided input on identified sites and policies to meet the identified housing needs.  In June 2020, the City Council reviewed the draft Ho using Element and received public comment and authorized staff to submit the draft to the State Department of Housing and Community Development (HCD) for review.  HCD approved the draft Housing Element on September 24, 2020 following minor text amendments. Amendments to the Housing Element did not impact the proposed policy direction, but instead included language to clarify and support City policies.  Staff provided a progress update to the City Council on October 13, 2020 and Council directed staff to proceed with the adoption process.  The Planning Commission held a meeting on October 20, 2020 and recommended that the City Council adopt the draft Housing Element as proposed. The Housing Element is a comprehensive statement by the community of its current and future housing needs and proposed actions to facilitate the provision of additional housing to meet those needs at all income levels. The policies contained in the Housing Element are an expression of the statewide housing goal of meeting the housing needs in our region, as well as a reflection of the unique concerns of the community. Housing Elements are required to: 1. Assess and address constraints to housing development 2. Provide an assessment of population housing needs 3. Analyze progress toward implementing the previous Housing Element 4. Guide housing development policy 5. Identify opportunities to meet the City’s housing needs and identified Regional Housing Needs Allocation (RHNA) a. Identify resources that support housing for all income groups b. Complete an inventory of existing and new sites for housing development in support of meeting the City’s RHNA Housing Element law does not require the City to build all units identified as part of the RHNA, but rather implement a plan to accommodate for these units throughout the City over the planning period (2019 through 2028). The Housing Element is not the only tool to solve housing problems but aims to identify constraints and barriers and provide realistic solutions where able. Analysis Draft Housing Element The Housing Element is divided into 7 chapters outlining and analyzing the City’s current regulatory framework, demographics, RHNA requirements, housing programs, and constraints to housing development. The plan also includes a review of past Housing Element programs and the County’s regional chapter outlining the regional goals for housing based on the Countywide Regional Compact. The Chapters are organized as follows: Page 41 of 216 ITEM NUMBER: B-1 DATE: 11/10/20 A. Introduction B. Housing Plan C. Regional Chapter D. Needs Assessment E. Housing Constraints F. Housing Resources G. Program Accomplishments 2014-2019 Housing Plan (Chapter B) The draft Housing Plan includes Goals, Policies and Programs aimed at supporting housing development throughout the City. The City’s overarching objective is to ensure that decent, safe housing is available to all current and future residents at a cost that is within the reach of the diverse economic segments in Atascadero. Additionally, the City must ensure that adequate services and infrastructure are available to serve our housing supply. To make adequate provisions for the housing needs of people at all income levels, State law (Government Code 65583[c]) requires that the City, at a minimum, identify specific programs that do all of the following:  Identify adequate sites, with appropriate zoning and development standards and services to accommodate the locality’s share of the regional housing needs for each income level.  Assist in development review and approval of adequate housing to meet the needs of extremely low-, very low-, low-, and moderate-income households.  Address and, where possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for people at all income levels, as well as housing for people with disabilities.  Conserve and improve the condition of the existing affordable housing stock and preserve assisted housing developments at risk of conversion to market -rate housing.  Promote equal housing opportunities for all people, regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability. Housing Element policies and programs are intended to show how the City will comply with State housing law and support the production of affordable housing. Policies set the general framework to adopt the goal, while programs include an action that the City must take to implement a policy or goal and can include quantifiable objectives that will be used to report the City’s progress on Housing Plan Implementation to the State annually. Ongoing policies and programs that remain relevant have been carried over from the previous Housing Element. New policies and programs have been included in alignment with recent State law changes and to further project streamlining. The programs included in the plan identify the actions that will be taken to make sites available during the planning period with appropriate land use and development standards and with services/facilities to accommodate the City’s share of regional housing need for each income level. The programs also address identified housing issues in Atascadero and approaches to meet State law housing requirements. Page 42 of 216 ITEM NUMBER: B-1 DATE: 11/10/20 Key Housing Element Programs The programs illustrated on the next page are the most notable programs of the draft Housing Element.  Program 1.A: Adequate Sites  Program 1.B: No Net Loss  Program 1.C: Mixed-Use Development  Program 2.B: Inclusionary Housing Ordinance  Program 2.F: Mixed-Use Standards  Program 2.G: Specific Plans  Program 3.A: Development Process Streamlining  Program 3.B: Objective Design Standards  Program 3.C: Multi-Family Housing Permitting  Program 3.D: RMF Zone Height  Program 3.E: Small Lot Subdivisions  Program 3.G: Emergency Shelter (ES) Overlay Zone  Program 3.H: Special Needs Housing Laws  HCD Added Program 3.O: Farmworker Housing in RS Zone  HCD Added Program 3.N: Definition of Immediate Family Regional Chapter (Chapter C) The County and all seven Cities are working collaboratively to develop the region’s first Regional Infrastructure and Housing Strategic Action Plan (Regional Plan) that will identify actions to address housing and resiliency issues. A key component of the Regional Plan is the integration of efforts to address critical housing and related infrastructure needs. As part of the Housing Element update process, representatives of the County, seven Cities, and San Luis Obispo Council of Governments (SLOCOG) developed a regional Chapter to be integrated into each jurisdiction’s Housing Elements, aimed at showcasing the ongoing commitment of each agency to this collaborative effort. The regional Chapter presents a regional vision and policies focused specifically on fostering regional collaboration to plan and develop housing and supportive infrastructure. The regional effort is an ongoing and iterative process. Identifying regional funding opportunities will be a collaborative process with the input of all eight jurisdictions and is subject to changes based on funding opportunities and identified needs. The regional partners are committed to improving the jobs/housing balance throughout the regional and identifying infrastructure projects and housing opportunities that support these integrated efforts. The list of shared regional goals and policies can be found in Chapter C. In addition, this collaborative effort includes a toolkit of programs and activities that can be adopted to support the regional goals. The City’s draft Housing Element already identifies a number of policies and programs that achieve this regional vision and the City will continue to participate in collaborative regional efforts to address jobs/housing balance, best practices for housing development and support, and building and prioritizing resilient infrastructure to serve the region into the future. Page 43 of 216 ITEM NUMBER: B-1 DATE: 11/10/20 Needs Assessment (Chapter D) The Housing Needs Assessment reviews local population demographics, housing stock characteristics, and economic characteristics to help the City to identify how well the current housing stock meets the needs of current and future residents. This chapter also describes the housing needs of special needs populations, including seniors, farmworkers, homeless persons, and persons with disabilities. Housing problems, such as overpayment/housing cost burden and overcrowding are also discussed. Housing Constraints (Chapter E) Chapter E analyzes the City’s current zoning regulations, building codes, code enforcement, infrastructure, fees, and permit processes (governmental constraints) to determine any constraints to housing development or preservation. In addition, per State law, the chapter also analyzes non-governmental constraints such as land and housing costs, environmental constraints, and availability of financing. If constraints are identified, a program is usually included in the Housing Plan to further analyze and to address the potential constraint. Governmental Constraints: The chapter identifies the following governmental housing constraints within the City’s regulatory framework:  2 story maximum for multi-family development (Program 3.D proposes to eliminate this restriction)  Low limit (12 units) trigger for discretionary entitlement for multi -family development (Program 3.C has been added to further analyze)  Emergency Shelter Overlay Zoning district and Supportive housing regulations need to address new State laws (Programs 3.H and 3.I have been included to ensure consistency)  The City lacks quantifiable objective design standards to facilitate housing development subject to SB35 and the Housing Accountability Act and to provide clarity for developers while achieving high-quality design. (Program 3.B calls for the adoption of objective design standards) The consultant’s analysis also found that the City does not impose greater site improvement or building code regulations on housing projects than is otherwise required by the State and/or surrounding communities. In addition, permit processing times are in line with or more expeditious than surrounding jurisdictions and comply with State streamlining requirements. Non-Governmental Constraints: Identified non-governmental constrains include land and construction costs, availability of financing, and environmental constraints. While the City cannot control these factors, programs are included in the plan to support applicants and developers through outreach efforts. Page 44 of 216 ITEM NUMBER: B-1 DATE: 11/10/20 Housing Resources (Chapter F) The Housing Resources Chapter identifies how Atascadero can meet the regional housing needs allocation (RHNA) over the next eight years, based on current projects, projects in the pipeline, and vacant and underutilized sites. Adequate sites are those with appropriate zoning and development standards —with services and facilities—needed to facilitate and encourage the development of a variety of housing for all income levels. The City Council reviewed sites appropriate to meet the city’s RHNA at the April 2020 meeting. Those sites are included in the inventory and have been accepted by the State as appropriate housing development sites. This chapter also reviews available financial and administrative tools to support affordable housing development. Past Program Accomplishments (Chapter G) The draft Housing Element includes a chapter outlining the City’s accomplishments during the previous planning period (2014-2019). This evaluation provides valuable information on the extent to which programs have achieved stated objectives and whether these programs continue to be relevant to addressing current and future housing needs in Atascadero. The evaluation provides the basis for recommended modifications to policies and programs and the establishment of new housing objectives. A full list of accomplishments and analysis of past programs can be found in Chapter G. Next Steps If the City Council proceeds with adoption of the draft Housing Element, the docume nt will be submitted to the State for certification . Final adoption of the document and certification by HCD needs to take place by December 31, 2020 to remain in compliance with State laws. Conclusion The Housing Element update is a State mandated process that aims to provide a regulatory and land-use framework aimed at addressing housing needs and providing opportunities for the construction of housing that meets the needs of current and future residents. The draft Housing Element was reviewed by the State and changes were made to comply with State requirements and ensure certification. This Housing Element will cover the planning period from 2021-2028. FISCAL IMPACT: None. The Housing Element is a state mandated activity. While review of potential Housing Element policies does not have a direct fiscal impact, changes in land -use policies will generally produce an overall positive or negative fiscal impact for the City depending on the policy. Creation of housing units generally has a negative fiscal impact upon City resources. The City received $160,000 in SB2 grant funds to offset the cost of updating the Housing Element and targeted implementation of identified programs. Of the $160,000 awarded, most of these funds were used to prepare 2021-2028 Housing Element. The remaining funds, in addition to available REAP and LEAP funds, will be used for program implementation. Page 45 of 216 ITEM NUMBER: B-1 DATE: 11/10/20 ALTERNATIVES: 1. The City Council may adopt modifications to any portion of the document. Any proposed modifications, including revisions to implementation programs, should be clearly re-stated in any vote. If modifications are considered substantive, the State Housing and Community Development Department will, in their review, need to determine if the modifications made are consistent with State law prior to proceeding with certification and may request additional changes or deny certification. 2. The City Council may determine that more information is needed and may refer the item back to staff to develop the additional information. If more information is needed, the Council should clearly state the type of information that is required. A motion, and approval of that motion, is required to continue the item to a future date. 3. The City Council may recommend denial of the Housing Element. The Council must specify what findings cannot be made, and provide a brief oral statement, based on the staff report, oral testimony, site visit, correspondence, or any othe r rational introduced and deliberated by the Council. If denying the Element, the City will not have a certified Housing Element or legally adequate general plan, will be placed on a 4-year update cycle for the Housing Element, and will not be eligible for certain grants or State programs. ATTACHMENTS: 1. Draft Resolution a. 2021-2028 Housing Element 2. HCD approval to proceed letter 3. Public Comment Letter – Max Zappas 4. Public Comment Letter – First 5 San Luis Obispo County 5. Public Comment Letter- SLOCOG Page 46 of 216 ITEM NUMBER: B-1 DATE: ATTACHMENT: 11/10/20 1 DRAFT RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ATASCADERO, CALIFORNIA, ADOPTING THE 2021-2028 HOUSING ELEMENT (CPP19-0067) WHEREAS, the State requires that the City’s Housing Element be updated at regular intervals to analyze housing needs and establish goals, policies, programs, and quantified objectives to meet identified needs; and WHEREAS, the City of Atascadero is listed on the 2020 6th Cycle Update schedule as determined by the State of California; and WHEREAS, the proposed 2021-2028 Housing Element is in the public interest; and WHEREAS, the proposed 2021-2028 Housing Element is in conformance with the other elements of the adopted General Plan Goals, Policies, and Programs and the overall intent of the General Plan; and WHEREAS, the proposed 2021-2028 Housing Element is compatible with existing development, neighborhoods and the environment; and WHEREAS, the proposed 2021-2028 Housing Element is developed so the City can achieve the housing goals of the State as stated in Section 65580 of the California Government Code: a. The availability of housing is of vital statewide importance, and the early attainment of decent housing and a suitable living environment for every Californian, including farmworkers, is a priority of the highest order; and b. The early attainment of this goal requires the cooperative participation of government and the private sector in an effort to expand housing opportunities and accommodate the housing needs of Californians of all economic levels. The provision of housing affordable to low and moderate-income households requires the cooperation of all levels of government; and c. Local and state governments have a responsibility to use the powers vested in them to facilitate the improvement and development of housing to make adequate provision for the housing needs of all economic segments of the community; and d. Each local government also has the responsibility to consider economic, environmental and fiscal factors and community goals set forth in the general plan and to cooperate with other local governments and the state in addressing regional housing needs. WHEREAS, the laws and regulations relating to the preparation and public notice of environmental documents, as set forth in the State and local guidelines for implementation of the California Environmental Quality Act (CEQA) have been adhered to; and Page 47 of 216 ITEM NUMBER: B-1 DATE: ATTACHMENT: 11/10/20 1 WHEREAS, a timely and properly noticed Public Hearing upon the subject 2021-2028 Housing Element was held by the Planning Commission of the City of Atascadero at which hearing evidence, oral and documentary, was admitted on behalf of said 2021-2028 Housing Element ; and WHEREAS, the Planning Commission of the City of Atascadero, at a duly noticed Public Hearing held on October 20, 2020 studied and considered the 2021-2028 Housing Element (CPP19-0067) and recommended approval to the City Council. NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Atascadero: SECTION 1. Recitals: The above recitals are true and correct. SECTION 2. Public Hearing. The City Council of the City of Atascadero, at a duly noticed Public Hearing held on November 10, 2020 studied and considered the 2021-2028 Housing Element (CPP19-0067). SECTION 3. CEQA. The proposed Housing Element adoption is exempt from the California Environmental Quality Act (CEQA), Public resources Code Section 21000 et seq., because it can be seen with certainty that there is no possibility that the enactment of this Resolution would have a significant effect on the environment (Pub. Resources Code § 21065; CEQA Guidelines §§ 15378(b)(4), 15061(b)(3). SECTION 4. Approval. The City Council of the City of Atascadero, in a regular session assembled on November 10, 2020, resolved to adopt the 2021-2028 Housing Element on file in the Community Development Department and incorporated herein by reference. PASSED AND ADOPTED at a regular meeting of the City Council held on the __th day of _____ 2020. On motion by Council Member_____ and seconded by Council Member ____, the foregoing Resolution is hereby adopted in its entirety on the following roll call vote: AYES: NOES: ABSENT: ABSTAIN: CITY OF ATASCADERO ________________________________ Heather Moreno, Mayor ATTEST: Lara K. Christensen, City Clerk Page 48 of 216 ITEM NUMBER: B-1 DATE: ATTACHMENT: 11/10/20 1 APPROVED AS TO FORM: Brian Pierik, City Attorney Page 49 of 216 City of Atascadero 2021-2028 Housing Element FINAL DR AF T | OCTOBER 2020 ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 50 of 216 This page intentionally left blank. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 51 of 216 City of Atascadero 2021-2028 Housing Element City of Atascadero 6500 Palma Avenue Atascadero, CA 93422 Public Hearing Draft October 2020 ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 52 of 216 This page intentionally left blank. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 53 of 216 Table of Contents Page A. Introduction A-1 A.1 Overview A-1 A.2 Scope and Content of the Housing Element A-1 A.3 Relationship to Other General Plan Elements A-2 A.4 Public Participation A-2 B. Housing Plan B-1 B.1 Goals and Policies B-1 B.2 Implementing Programs B-3 B.3 Summary of Quantified Objectives B-15 C. Regional Vision for Housing C-1 C.1 Overview C-1 C.2 Alignment with Regional Compact C-1 C.3 Policies C-2 C.4 Moving Forward C-3 D. Needs Assessment D-1 D.1 Population, Employment and Household Trends D-1 D.2 Special Needs Groups D-5 D.3 Housing Characteristics D-12 D.4 Housing Cost and Affordability D-14 D.5 Housing Problems D-17 D.6 Housing at Risk of Converting from Affordable to Market Rate Housing D-19 E. Constraints on Housing Production E-1 E.1 Governmental Constraints E-1 E.2 Nongovernmental Constraints E-24 F. Housing Resources F-1 F.1 Regional Housing Needs Allocation (RHNA) F-1 F.2 Progress Towards the RHNA F-2 F.3 Residential Sites Inventory F-4 F.4 Site Infrastructure and Services F-10 F.5 Environmental Constraints F-12 F.6 Financial Resources F-12 F.7 Administrative Resources F-13 G. 2014-2019 Housing Element Program Accomplishments G-1 Appendix A: Public Outreach Contact List X-1 ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 54 of 216 This page intentionally left blank. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 55 of 216 Atascadero Housing Element A: Introduction | 1 A. Introduction 1. Overview This Housing Element provides the City of Atascadero with a coordinated and comprehensive strategy for promoting the production of safe, decent, and affordable housing for all community residents. The Housing Element is a mandatory General Plan element. It identifies ways in which the housing needs of existing and future residents can be met. State law requires that all cities adopt a Housing Element and describes in detail the necessary contents of the Housing Element. California planning law provides more detailed requirements for the Housing Element than for any other General Plan element. This Housing Element responds to those requirements and responds specifically to conditions and policy directives unique to Atascadero. The California Legislature has identified the attainment of a decent home and suitable living environment for every Californian as the state’s main housing goal. Recognizing the important part that local planning programs play in pursuit of this goal, the Legislature has mandated that all cities and counties prepare a Housing Element as part of their comprehensive General Plans. Section 65581 of the California Government Code reflects the legislative intent for mandating that each city and county prepare a Housing Element: 1. To ensure that counties and cities recognize their responsibilities in contributing to the attainment of the State housing goal 2. To ensure that counties and cities will prepare and implement housing elements which, along with federal and state programs, will move toward attainment of the state housing goals 3. To recognize that each locality is best capable of determining what efforts are required by it to contribute to the attainment of the state housing goal, provided such a determination is compatible with the state housing goal and regional housing needs 4. To ensure that each local government cooperates with other local governments to address regional housing needs 2. Scope and Content of the Housing Element The Housing Element covers the planning period of December 31, 2020 through December 31, 2028 and identifies strategies and programs to: 1) encourage the development of a variety of housing opportunities; 2) provide housing opportunities for persons of lower and moderate incomes; 3) preserve the quality of the existing housing stock in Atascadero; 4) minimize governmental constraints; and 5) promote equal housing opportunities for all residents. Toward these ends, the Housing Element consists of: • An introduction of the scope and purpose of the Housing Element • A Housing Plan to address the identified housing needs, including housing goals, policies, and programs • A Regional Infrastructure and Housing Strategic Action Plan, which was developed collaboratively with and is adopted by the County of San Luis Obispo and all seven cities within the county ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 56 of 216 Atascadero Housing Element 2 | A: Introduction • An analysis of the City’s demographic and housing characteristics and trends • A review of potential market, governmental, and environmental constraints to meeting the City’s identified housing needs • An evaluation of land, administrative, and financial resources available to address the housing goals • A review of past accomplishments under the previous Housing Element The Housing Element is also closely related to the Zoning Regulations and assesses multiple ordinances and Zoning Regulations sections that pertain to housing for compliance with State law. As new ordinances are considered, the City will review the Housing Element to ensure compliance with housing policies. 3. Relationship to Other General Plan Elements State law requires that the General Plan and all individual elements collectively form an "integrated, internally consistent, and compatible statement of policies." The goals, policies, and programs of this Housing Element are consistent with the goals, policies, and programs contained in other elements of the Atascadero General Plan. Development policies contained in the Land Use, Open Space & Conservation Element—which establishes the location, type, density, and distribution of local land uses, including housing—most directly relate to the Housing Element. The policies and priorities of the Housing and Land Use, Open Space & Conservation Element have been carefully balanced to maintain internal consistency. When any element of the General Plan is amended, the City will review the Housing Element and if necessary, prepare an amendment to ensure continued consistency among elements. State law requires that upon revisions to the Housing Element, the Safety and Conservation Elements include an analysis and policies regarding flood hazard and management information. 4. Public Participation The Housing Element must reflect the values and preferences of the Atascadero community; therefore, public participation plays a role in the development of this Element. Section 65583(c)(6)(B) of the Government Code states: “The local government shall make diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort.” This process not only includes residents of the community, but also coordinates participation among local agencies and housing groups, community organizations, and housing sponsors. Community Workshops and Study Sessions On January 28, 2020, the City conducted a workshop to gather input from key local stakeholders, housing advocates and residents. The meeting included a presentation about the intent of the Housing Element update, followed by a facilitated discussion regarding housing issues, opportunities to meet local housing needs, and creative approaches to address the City’s constraints to housing production. Participants included local developers, service providers, advocates, and interested residents. Outreach for the workshop and study session were conducted using social media campaigns and local media outlets. Information was also posted on the City website. The workshop was open to the public and interested developers, housing advocates, and residents were encouraged to attend. The City also posted a survey and comment page on the website to solicit comments and questions from those who could not ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 57 of 216 Atascadero Housing Element A: Introduction | 3 attend or who needed additional time and information to comment. Email follow-up was conducted after the events to all who provided contact information to ensure that the City captured all input and answered any questions. The list of agencies, organizations, and community members invited to the study session are listed in Appendix A. Public comments received at the workshop and through follow-up outreach encouraged the City to see housing as an opportunity, while understanding the importance of considering the jobs to housing balance. Participants recommended ways to streamline the housing development approval process (including a clear roadmap with certainty), reduction in various permit fees, creative solutions to reduce the costs of development, and a focus on making Atascadero attractive for the building community. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 58 of 216 Atascadero Housing Element 4 | A: Introduction Community Workshop | January 28, 2020 Following the workshop, the Planning Commission and City Council held a joint study session to review Housing Element requirements, report on input received at the workshop earlier in the day, and discuss issues, locations where new housing should be encouraged, creative solutions to constraints, and how to respond to local needs of Atascadero. Public comments included: • Streamline the approval process with reduced use of conditional use permits and removal of minimum lot size requirements. • Provide a mechanism, such as in-lieu fee payment, to substitute for parking requirements. • Find ways to incentivize affordable housing rather than require it. • Upzone around downtown. • Consider an overlay to allow residential along El Camino Real. • Consider the increasing senior population and develop creative solutions such as extra bedrooms, accessory dwelling units, and tiny homes. • Reduce fees, especially for the housing types that are affordable by design. • Consider changes to land use as part of a General Plan update and consider property owner requests to rezone. On April 14, 2020, the City Council conducted a study session to discuss potential sites to meet the regional housing needs allocation (RHNA) and policies to consider in the Housing Element. Due to the statewide Shelter at Home order associated with the COVID-19 pandemic, this meeting was not physically open to the public but was accessible via teleconferencing and viewing on the local television station and YouTube streaming. Press releases/notification of the study session and draft Housing Element were sent to local media outlets as well as posted on the City website and social media accounts. In addition, outreach to interested members of the resident, housing advocacy, and development community was conducted via email. Public comments were received via teleconference and included requests for rezoning, discussion of junior accessory dwelling units, and support for horizontal mixed use, removal of minimum lot size requirements, and increasing housing in the community. On June 23, 2020, the City Council conducted a workshop prior to submitting the draft Housing Element to the State Department of Housing and Community Development (HCD) to discuss the Draft Housing Element. Because the statewide Shelter at Home order was still in place, this meeting was not physically open to the public; the public participated via teleconferencing and viewing on the local television station and YouTube. The draft Housing Element was made available on the City’s website for review and comment. Notification of the workshop/hearing was published in the San Luis Obispo Tribune newspaper. To ensure that the housing concerns of low- and moderate-income and special needs residents were addressed, the City notified agencies and organizations that serve these communities in Atascadero and surrounding areas. Local stakeholders such as developers, service providers, neighboring jurisdictions, and housing advocates were invited to review and comment on the 2020-2028 Housing Element (the link to the draft was widely distributed) and to attend the study session. Additional outreach was also made to community members that attended prior workshops and those who commented through the website. The list of agencies and organizations invited to the study session (and notified of the availability of the draft Housing Element for comment) are listed in Appendix A. No public comments were submitted at the workshop. City Council members discussed the details of the draft Housing Element, asked questions, and requested revisions. Typographical errors were corrected, and edits were made to clarify unclear language. Additional discussion was added, as well as a new policy to encourage creation of “missing middle” housing types. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 59 of 216 Atascadero Housing Element A: Introduction | 5 On June 25, 2020, the regional consortium (County, Cities, and San Luis Obispo Council of Governments) held a virtual workshop to review the Regional Chapter (Chapter 3), which is included in all Housing Elements in the county. Housing advocates and stakeholders were invited to participate and comment on the regional chapter and a brief summary of Housing Element highlights for each jurisdiction. Comments from stakeholders included a desire for more deed-restricted affordable housing and standardization of processes and standards for jurisdictions in the region. In July through September, the San Luis Obispo Chamber of Commerce hosted a housing summit that invited the community to hear from housing experts on the opportunities and challenges with housing production. Part 3 of the series was held on September 10, 2020 and focused on City and County housing policies and Housing Element progress. The City of Atascadero participated in showcasing draft housing element policies and programs that support housing production and increase opportunities for housing throughout the City. The City’s website was shared with the attendees and all were encouraged to comment and participate through the seminar, through the City’s website, or via phone or email. Further opportunity for public participation will be provided at Planning Commission and City Council adoption hearings expected to occur late October and November 2020. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 60 of 216 Atascadero Housing Element 6 | A: Introduction Community Workshop Comments| January 28, 2020 ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 61 of 216 Atascadero Housing Element B: Plan| 1 B. Housing Plan This Housing Plan’s goals, policies, and programs have been established to address housing issues in Atascadero and to meet state law housing requirements. The City’s overarching objective is to ensure that decent, safe housing is available to all current and future residents at a cost that is within the reach of the diverse economic segments in Atascadero. These Goals, Policies, and Programs are informed by the housing needs assessment (Section D) , housing constrains analysis (Section E), Housing Resources analysis (Section F), and the review or program accomplishments for the previous (2014-2019) Housing Element (Section G). The City of Atascadero is working collaboratively with San Luis Obispo County and cities to develop the region’s first Regional Infrastructure and Housing Strategic Action Plan (Regional Plan) that will identify actions to address these issues. As part of the 6th Cycle Housing Element update process, representatives of the County, seven Cities and San Luis Obispo Council of Governments (SLOCOG) developed a regional vision and policies to showcase the ongoing commitment of each agency to this collaborative effort. The regional vision and policies in included in Section C. To make adequate provision for the housing needs of people all income levels, state law (Government Code 65583[c]) requires that the City, at a minimum, identify programs that do all of the following:  Identify adequate sites, with appropriate zoning and development standards and services to accommodate the locality’s share of the regional housing needs for each income level.  Assist in the development of adequate housing to meet the needs of extremely low-, very low-, low-, and moderate-income households.  Address and, where possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for people at all income levels, as well as housing for people with disabilities.  Conserve and improve the condition of the existing affordable housing stock and preserve assisted housing developments at risk of conversion to market-rate housing.  Promote equal housing opportunities for all people, regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability. Programs generally include a statement of specific City action(s) necessary to implement a policy or goal and identify the City department or other agency responsible for implementation, the quantified objectives (where applicable), and a timeframe for completion. A summary of quantified objectives is included following the program descriptions. 1. Goals and Policies Goal HOS 1: Provide adequate sites for housing development to accommodate a range of housing by type, size, location, price, and tenure. Policy 1.1: Implement land use policies and standards that allow for a range of residential densities and products that will provide households of all types and income levels the opportunity to find suitable ownership or rental housing. Policy 1.2: Facilitate the development of accessory dwelling units on single-family parcels where adequate services can be provided. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 62 of 216 Atascadero Housing Element 2 | B: Plan Policy 1.3: Encourage the production of housing, with particular emphasis on housing affordable to persons with disabilities, elderly, large families, female-headed households with children, and homeless individuals. Policy 1.4: Encourage the development of residential units that are accessible to persons with disabilities or are adaptable for conversion to residential use by persons with disabilities. Policy 1.5: Encourage the creation of “missing middle” housing, such as duplexes, twin- homes, modular housing, and other similar types of housing that are affordable by design and available for rent and for sale. Goal HOS 2: Promote diverse and high-quality housing opportunities to meet the needs of all economic segments of the community. Policy 2.1: Facilitate housing development that is affordable to lower income households by providing technical assistance, regulatory incentives and concessions, and financial resources as funding permits. Policy 2.2: Continue to utilize federal and state subsidies, as well as City resources, to the fullest extent possible, to assist in meeting the housing needs of lower-income residents, including extremely low-income residents. Policy 2.3: Encourage new housing, including mixed-use projects in appropriate commercial land use areas to assist in meeting the needs of all household types in the City. Policy 2.4: Support regional efforts to address homelessness. Goal HOS 3: Reduce or remove governmental and non-governmental constraints to the development, improvement, and maintenance of housing where feasible and legally permissible. Policy 3.1: Review projects in as timely a manner as possible, while maintaining adequate public involvement and fulfilling the appropriate requirements of state and local laws. Policy 3.2: Monitor state and federal housing-related legislation, and update City plans, ordinances, and processes as appropriate to remove or reduce governmental constraints. Policy 3.3: Encourage interplay between lending institutions, the real estate and development community, and the City to better understand and address non- governmental constraints and facilitate production of affordable housing. Policy 3.4: Help lower development costs where feasible, especially for low- and moderate- income housing units. Policy 3.5: Encourage energy conservation and sustainable building measures in new and existing homes through adherence to the California Green Building Code. Goal HOS 4: Protect and conserve the existing housing stock and neighborhoods, including the City’s affordable housing stock. Policy 4.1: Encourage conservation and preservation of neighborhoods and sound housing. Policy 4.2: Promote and preserve affordable housing. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 63 of 216 Atascadero Housing Element B: Plan| 3 Policy 4.3 Encourage conservation and preservation of houses that have historical and architectural significance. Policy 4.4: Leverage state and federal loans and grants to assist in preserving existing housing and rehabilitating unsound housing structures. Goal HOS 5: Affirmatively further equal and fair access to sound, affordable housing for all persons. Policy 5.1: Affirmatively further fair housing related to the sale, rental, and financing of housing to avoid discrimination based on race, religion, age, sex, marital status, ancestry, national origin, color, familial status, or disability, or any other arbitrary factor. Policy 5.2: Assist in the enforcement of state and federal fair housing and anti-discrimination laws by assisting organizations that receive and investigate fair housing allegations and refer possible violations of fair housing laws to enforcing agencies. Policy 5.3: Promote and affirmatively further fair housing opportunities and promote housing options throughout the community for all persons. Policy 5.4: Ensure that persons with disabilities have adequate access to housing. 2. Implementing Programs The programs below identify the actions that will be taken to make sites available during the planning period with appropriate land use and development standards and with services/facilities to accommodate the City’s share of regional housing need for each income level. The programs also address identified housing issues in Atascadero and approaches to meet state law housing requirements. Program numbers reference corresponding goals listed above. Program 1.A: Adequate Sites The City of Atascadero has a remaining RHNA of 266 units for the 2018-2028 RHNA planning period after credits for permitted or approved units are taken into consideration. Overall, the City can adequately accommodate the City’s current RHNA under existing General Plan and Zoning Regulations standards. The residential sites inventory to address the current RHNA consists of 11 mostly vacant sites with capacity to yield 497 new units. The City will maintain an inventory of available sites for residential development and provide it to prospective residential developers upon request, and the City will continue to track the affordability of new housing projects and progress toward meeting the City’s RHNA. The City will also continue allowing housing development on RMF-24 properties identified in the Housing Element Sites Inventory as a by-right use, not subject to a conditional use permit, specific plan, or discretionary action. By right includes but is not limited to housing developments in which at least 20 percent of the units are affordable to lower income households. The City of Atascadero is not responsible for the actual construction of these units. The City is, however, responsible for creating a regulatory environment in which the private market could build these units. This includes the creation, adoption, and implementation of General Plan policies, zoning and development standards, and/or incentives to encourage the construction of various types of units. Funding Source: General Fund (staff time) Responsible Party: Community Development Department ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 64 of 216 Atascadero Housing Element 4 | B: Plan Timeframe: Ongoing; annual assessment of status of housing sites inventory as part of the annual reporting process to the State Quantified Objective: 266 units Program 1.B: No Net Loss Government Code Section 65863 stipulates that a jurisdiction must ensure that its Housing Element inventory can accommodate its share of the RHNA by income level throughout the planning period. If a jurisdiction approves a housing project at a lower density or with fewer units by income category than identified in the Housing Element, it must quantify at the time of approval the remaining unmet housing need at each income level and determine whether there is sufficient capacity to meet that need. If not, the city or county must “identify and make available” additional adequate sites to accommodate the jurisdiction’s share of housing need by income level within 180 days of approving the reduced-density project. The City will evaluate residential development proposals for consistency with goals and policies of the General Plan and the 2020-2028 Housing Element sites inventory and make written findings that the density reduction is consistent with the General Plan and that the remaining sites identified in the Housing Element are adequate to accommodate the RHNA by income level. If a proposed reduction of residential density will result in the residential sites inventory failing to accommodate the RHNA by income level, the City will identify and make available additional adequate sites to accommodate the its share of housing need by income level within 180 days of approving the reduced density project. Funding Source: General Fund (staff time) and application fees Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Ongoing; as part of the entitlement review process, evaluate new projects for consistency with General Plan objectives as they relate to housing and RHNA obligations Program 1.C: Mixed-Use Development Continue to allow mixed residential and commercial development and promote second- and third-story residential development in the Downtown zoning districts. To increase project certainty and streamline development, the City will consider identifying appropriate, mid-block locations, outside of downtown, for future mixed-use/residential development (in commercial zoning districts) while considering appropriate jobs/housing balance and fiscal impacts. Considering market conditions and development costs, the City will provide, when possible, developer incentives such as expedited permit processing and flexible development standards for units that are affordable to lower-income households. The City will publicize these incentives on the City’s website (www.atascadero.org) to make them available in a timely fashion. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Ongoing; identification of mixed-use opportunity areas as part of a comprehensive General Plan update (to be initiated in 2021) Quantified Objective: 5 Mixed Use Projects Program 1.D: Accessory Dwelling Units Promote the development of accessory dwelling units (ADUs) by adopting an ADU ordinance addressing the latest provisions in State law, including permit streamlining processes. Provide pre-approved ADU ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 65 of 216 Atascadero Housing Element B: Plan| 5 plans as a tool for encouraging development of ADUs and lowering plan review costs for applicants and the City. Promote development of ADUs by providing written information at the City’s planning counter and on the City’s website. Funding Source: General Fund (staff time); grants Responsible Party: Community Development Department, Public Works Department, Planning Commission, City Council, San Luis Obispo Council of Governments Timeframe: Within two years of Housing Element adoption Quantified Objective: 225 Units (this Objective is a subset of and not in addition to the Quantified Objective for Program 1.A: Adequate Sites) Program 1.E: Special Needs Housing Provide housing opportunities to meet the special housing needs of special needs residents (including the elderly, disabled, developmentally disabled, large families, the homeless, farmworkers, and extremely low-income households) by giving priority to development projects that include a component for special needs groups in addition to other lower-income households. Funding Source: General Fund (staff time) and other sources, as available Responsible Party: Community Development Department Timeframe: Ongoing Quantified Objective: 15 units (this Objective is a subset of and not in addition to the Quantified Objective for Program 1.A: Adequate Sites) Program 1.F: Housing for Persons with Disabilities Assist in meeting the housing needs for persons with disabilities, including persons with developmental disabilities, by implementing the following actions:  Assist developers who seek state and federal monies in support of housing construction and rehabilitation targeted for persons with disabilities, including persons with developmental disabilities.  Provide regulatory incentives and concessions to projects targeted for persons with disabilities, including persons with developmental disabilities.  Work with local organizations such as the Tri-Counties Regional Center and Transitions Mental Health Association to implement an education and outreach program informing local families about housing and services available for persons with disabilities, including developmental disabilities. The program will include the development of an informational brochure available on the City’s website or at City Hall. Funding Source: General Fund (staff time) and other sources, as available Responsible Party: Community Development Department Timeframe: Support grant applications- at least once during the planning period; develop informational material - within two years of Housing Element adoption; provide incentives for development of housing for persons with disabilities - ongoing ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 66 of 216 Atascadero Housing Element 6 | B: Plan Program 2.A: Density Bonus Maintain an affordable housing density bonus ordinance that establishes procedures for obtaining and monitoring density bonuses in compliance with state law. Update the City’s density bonus ordinance to remain in compliance with Government Code §65915. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Updated density bonus ordinance adoption - within two years of Housing Element adoption; reviewing ordinance for compliance with State law - ongoing Quantified Objective: 25 units (this Objective is a subset of and not in addition to the Quantified Objective for Program 1.A: Adequate Sites) Program 2.B: Inclusionary Housing Ordinance Evaluate the City’s inclusionary housing policy and consider replacing the current inclusionary policy with an inclusionary housing ordinance. An inclusionary ordinance must be consistent with state density bonus regulations and address changing economic and regulatory considerations. The City will continue to monitor the impact of its inclusionary housing policy/ordinance on production of market rate housing in response to market conditions. If the City’s inclusionary housing approach presents an obstacle to the development of the City's fair share of regional housing needs, the City will consider revising the policy/ordinance accordingly. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Review the City’s current inclusionary housing policy within two years of Housing Element adoption Quantified Objective: 50 units (this Objective is a subset of and not in addition to the Quantified Objective for Program 1.A: Adequate Sites) Program 2.C: Affordable Housing In-Lieu funds Evaluate the adoption of a policy to determine the best use of City Affordable Housing In-Lieu funds to support the creation of new affordable housing units in Atascadero. Work with affordable housing developers and identify funding to address the housing needs of extremely low-income households and totally and permanently disabled persons. Funding Source: General Fund (staff time), Inclusionary Housing Fees, and other funding sources, as appropriate Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Affordable Housing In-Lieu funds policy evaluation within two years of Housing Element adoption; identify funding sources annually Quantified Objective: Assist with development of 5 affordable units Program 2.D: Affordable Housing Technical Assistance Provide pre-application technical assistance to affordable housing providers to determine project feasibility and address zoning and code compliance issues in the most cost-effective and expeditious manner possible. If not already initiated via potential projects, annually consult with local affordable housing developers, including offering letters of support for grant applications, advising on local zoning and code compliance, and facilitating partnerships. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 67 of 216 Atascadero Housing Element B: Plan| 7 Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing and annual consultation Quantified Objective: Provide letters of support for 5 affordable housing project applications Program 2.E: Affordable Housing Development Incentives Provide, when possible, developer incentives such as expedited permit processing and developer impact fee deferrals for units that are affordable to lower-income households, including extremely-low income households. Atascadero will promote these incentives to developers on the City’s website and during the application process. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing Quantified Objective: Assist 5 lower-income housing projects Program 2.F: Mixed-Use Standards Adopt mixed-use development standards that facilitate high-quality development and that strike a balance between the community’s need for housing and the City’s need to preserve viable commercial land uses to help sustain the City’s ability to provide essential services. During the formulation of development standards, the City will assess the potential for residential density increases for mixed-use projects. The City will pursue the drafting of new mixed-use developments standards and Objective Design Standards (Program 3.B) to ensure that the City’s planning and design goals for mixed-use projects and multi-family housing are met. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of Housing Element adoption Program 2.G: Specific Plans Continue to require the use of specific plans or planned developments for residential projects of 100 or more single-family units to ensure that the distribution of land uses, infrastructure requirements, and implementation measures are consistent with the General Plan and the City’s development goals and needs. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Ongoing Program 2.H: Resources to Address Homelessness Continue working with non-profit organizations that address homelessness to aid residents in need and provide technical support as needed. Continue cultivating a close relationship with the El Camino Homeless Organization (ECHO) to maintain a safe and secure shelter that meets the immediate needs of families and individuals who have become homeless. Cooperate with non-profit groups and local religious organizations to allow the temporary use of churches as homeless shelters. Continue to support local ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 68 of 216 Atascadero Housing Element 8 | B: Plan programs that provide emergency resources such as motel voucher programs and emergency food provision. Funding Source: General Fund (staff time), CDBG Responsible Party: Community Development Department Timeframe: Ongoing Program 2.I: Single-Room Occupancy Units (SROs) Review and, if necessary, revise siting regulations for single-room occupancy units (SROs) to comply with State law. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within three years of Housing Element adoption as part of a future Zoning Regulations update Program 3.A: Development Process Streamlining Continue streamlining the project review process by:  Reviewing, and if necessary, revising local review procedures to facilitate a streamlined review process  Accommodating SB 35 streamlining applications or inquiries by creating and making available to interested parties an informational packet that explains the SB 35 streamlining provisions in Atascadero and provides SB 35 eligibility information  Continuing to consolidate all actions relating to a specific project on the same Council or Commission agenda  Continuing to review minor project modifications through the Design Review Committee and more substantial changes through a Planning Commission process  Maintaining pre-approved stock development plans to streamline the plan check process for ADUs Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Ongoing; SB 35 informational material within two years of Housing Element adoption Program 3.B: Objective Design Standards In compliance with SB 330, adopt objective design standards to ensure that the City can provide local guidance on design and clearly articulate objective design standards for by-right projects as allowed by state law. Adoption of objective design standards will facilitate high-quality residential development and compliance with state objectives. The objective design standards will ensure provision of adequate private open space, parking, and architectural features, consistent with state law. Part of the objective design standards creation process will include assessing how the standards can be used to encourage a variety of housing types and limit the size of residential units on multi-family zoned properties to encourage units that are affordable by design. Funding Source: SB2 funding, General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of Housing Element adoption ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 69 of 216 Atascadero Housing Element B: Plan| 9 Program 3.C: Multi-Family Housing Permitting To reduce constraints to multi-family housing production, the City will review and revise the Conditional Use Permit (CUP) requirements for multi-family housing in conjunction with adoption of objective design standards and to comply with the Housing Accountability Act. The Atascadero Zoning Regulations require a CUP for residential projects in the RMF zone over 11 units, excluding RMF-24 properties identified in the Housing Element sites inventory, which are allowed by right. Any revisions to Zoning Regulations will not affect the by-right approval of multi-family projects in the RMF-24 zone on Housing Element sites, which are not subject to a CUP or a Specific Plan. Revisions are intended to facilitate the permitting process for multi-family housing and will be consistent with any by-right or streamlining requirements identified in state law. The City will periodically evaluate the approval process for housing projects to ensure compliance with the intent of the Housing Accountability Act. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Modify CUP requirement within two years of Housing Element adoption in conjunction with adoption of objective design standards; monitor approval process for housing development - ongoing Program 3.D: RMF Zone Height Amend the Zoning Regulations to remove number of stories limit in the Residential Multi-Family (RMF) Zone and regulate based on height in feet, allowing for adequate emergency response and community character preservation. Amend Zoning Regulations definitions and exceptions to height limits, as appropriate, to facilitate three-story development in the RMF Zone. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of Housing Element adoption Program 3.E: Small Lot Subdivisions Consider adopting small lot subdivision standards that incorporate specific site and building development standards (such as parking, height, yard space, architecture) in exchange for flexible minimum lot sizes. Consider allowing small lot subdivisions without rezoning. Small lot subdivision standards can eliminate the need for multi-family planned developments that are currently subject to a rezoning process. Establishing a set of high-quality standards for each small lot subdivision, instead of minimum lot size, can save substantial staff time and applicant costs and would allow for increased creativity with site design while increasing ownership opportunities for all income segments of the community (affordable by design). Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Ongoing; review small lot subdivisions as part of a Comprehensive General Plan and Zoning Regulations Update Program 3.F: Rural Residential Development Standards Adopt a Rural Residential Zone in the Zoning Regulations consistent with its designation on the Zoning Map and standards that distinguish it from the Residential Suburban zone to facilitate the development of a variety of housing types. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 70 of 216 Atascadero Housing Element 10 | B: Plan Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within three years of Housing Element adoption as part of a Comprehensive General Plan update Program 3.G: Emergency Shelter (ES) Overlay Zone Review the Emergency Shelter (ES) Overlay Zone for continued compliance with state law; evaluate the need and expand the zone, as appropriate, to other appropriate properties, subject to the locational and operational criteria outlined in the Zoning Regulations. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of housing element adoption Program 3.H: Special Needs Housing Laws Review the Zoning Regulations and if necessary, make changes to ensure compliance with the Supportive Housing Streamlining Act (AB 2162) and AB 101 (Low-Barrier Navigation Centers). AB 2162 requires supportive housing to be considered a use by right in zones where multi-family and mixed uses are permitted, including nonresidential zones permitting multi-family uses, if the proposed housing development meets specified criteria. AB 101 requires that Low-Barrier Navigation Centers (LBNC) be a by-right use in areas zoned for mixed-use and nonresidential zones permitting multi-family uses. LBNC provide temporary room and board with limited barriers to entry while case managers work to connect homeless individuals and families to income, public benefits, health services, permanent housing, or other shelter. Funding Source: General Fund (staff time); grants Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of adoption of the Housing Element Program 3.I: Housing Financing Constraints Continue to work with the development community to identify and mitigate any constraints on access to financing for multi-family development. The City will conduct regular stakeholder meetings with members of the development community, including representatives from local non-profit housing organizations, developers, and real estate brokers to solicit feedback. Continue to facilitate understanding of the impacts of economic issues, employment, and growth on housing needs among financial, real estate, and development professionals in formalized settings, such as the Economic Round Table. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing Program 3.J: Non-Governmental Constraints Continue to monitor and evaluate development standards and advances in housing construction methods. Although the City has limited influence over non-governmental constraints, if non-governmental constraints are identified, the City will review, and if necessary, revise, any development regulations or processes that can potentially lessen those constraints. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 71 of 216 Atascadero Housing Element B: Plan| 11 Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Ongoing Program 3.K: Capital Facility Fees To encourage affordability by design, the City will modify the Capital Facility Fee schedule to index fees based on size of unit, providing lower rates for small units where there is a demonstrated nexus. The City will continue to monitor impact fees and the Capital Facility Fee schedule to identify barriers to housing development, particularly affordable units. If constraints are identified, the City shall revise the fee schedule accordingly while balancing infrastructure needs to support housing development. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, City Council Timeframe: Capital Facility Fee modification within two years of Housing Element adoption; impact fee monitoring and revisions - ongoing Program 3.L: Water and Sewer Service Providers In accordance with Government Code Section 65589.7, immediately following City Council adoption, the City will deliver to all public agencies or private entities that provide water or sewer services to properties within the City of Atascadero a copy of the 2020-2028 Housing Element. The City will also confirm that the agencies and entities providing water or sewer services have procedures in place to grant priority for the provision of water and sewer services to proposed developments that include housing units affordable to lower income households (Government Code Section 65589.7). The City will also explore possible options to ease the burden of water service fees (working with the Atascadero Mutual Water Company) and sewer service fees (through the Department of Public Works) for affordable housing projects (both deed-restricted and market rate affordable units). Funding Source: General Fund (staff time), grants, sewer and water fees Responsible Party: Community Development Department Timeframe: Within 30 days of adoption of the Housing Element; coordination - ongoing Program 3.M: Energy Conservation Encourage and facilitate energy conservation and help residents minimize energy-related expenses by:  Promoting environmentally sustainable building practices that provide cost savings to homeowners and developers;  Providing informational material at the Community Development Department counters from PG&E and others that detail energy conservation measures for new and existing buildings, the benefits of the Green Building (San Luis Obispo Green Build), and resources to assist lower-income households with energy-related expenses; and  Continuing to strictly enforce the state energy standards of the California Green Building Code. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 72 of 216 Atascadero Housing Element 12 | B: Plan Program 3.N: Definition of Immediate Family Amend the Zoning Regulations to remove the definition of “immediate family” from the Zoning Regulations and any standards related to that definition, including Section 9-6.107(a)(1)(i) and 9- 6.107(a)(3), which requires immediate family to occupy accessory dwelling units in the A zone. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of Housing Element adoption Program 3.O: Farmworker Housing in RS Zone Amend the Zoning Regulations for the RS Zone to comply with California Health and Safety Code Section 17021.6, which generally requires that employee housing consisting of no more than 36 beds in group quarters (or 12 units or less designed for use by a single household) be treated as an agricultural use. Funding Source: General Fund (staff time) Responsible Party: Community Development Department, Planning Commission, City Council Timeframe: Within two years of Housing Element adoption Program 4.A: Housing Rehabilitation and Preservation As new projects, code enforcement actions, and other opportunities arise, the City will investigate ways to meet its housing needs through rehabilitation and preservation of existing units. The City will continue using code enforcement to identify housing maintenance issues and to expedite rehabilitation of substandard and deteriorating housing by offering technical assistance to homeowners and occupants. Funding Source: General Fund (staff time), CDBG Responsible Party: Community Development Department, Department of Public Works Timeframe: Ongoing Quantified Objective: Rehabilitation assistance to 20 units Program 4.B: Community Development Block Grant Continue to participate in federal grant programs, such as the Community Development Block Grant (CDBG) program, to obtain loans and/or grants for housing rehabilitation and homeless services. Funding Source: CDBG Responsible Party: Community Development Department Timeframe: Ongoing Program 4.C: Affordable Housing Preservation and Development Continue to work with non-profit agencies, such as the County Housing Authority, Habitat for Humanity, the San Luis Obispo County Housing Trust Fund, and Peoples’ Self-Help Housing, to preserve existing affordable housing and to pursue funding for new affordable housing units. Utilize inclusionary housing funds, as available and appropriate, to assist in the development of affordable housing by non-profit agencies. Continue to encourage developers to work with agencies such as the California Housing Finance Authority (CHFA) and the Department of Housing and Urban Development (HUD) to obtain loans for development of new multi-family rental housing for low-income households. Specifically, the City will:  Contact potential affordable housing developers ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 73 of 216 Atascadero Housing Element B: Plan| 13  Assist non-profits and other housing advocates in preparing applications for funding opportunities and financings  Provide regulatory concessions and incentives, as necessary, to encourage and facilitate the construction of affordable housing Funding Source: General Fund (staff time), CDBG, Tax Credits Responsible Party: Community Development Department Timeframe: Annual meetings, during preparation of annual review of the Housing Element, to discuss funding opportunities, vacant and opportunity sites, and status of affordable housing projects; ongoing collaboration Program 4.D: Affordable Housing at Risk of Conversion The City will continue to monitor the status of subsidized affordable projects, rental projects, and mobile homes in the City and provide technical and financial assistance, when possible, to ensure long-term affordability. This will involve contacting owner/operators of subsided projects annually to determine the status of the units and their potential to convert to market-rate. If projects are at risk, the City will maintain contact with local organizations and housing providers who may have an interest in acquiring at- risk units. The City will keep track of and apply for funding opportunities to preserve at-risk units and assist other organizations in applying for funding to acquire at-risk units. Funding Source: General Fund (staff time); grants Responsible Party: Community Development Department, Administrative Services Department Timeframe: Contact owners/operators annually and ongoing Program 4.E: Housing Choice Vouchers Continue to work with the Housing Authority of San Luis Obispo (HASLO) for administration of the Housing Choice Voucher program (formerly Section 8). The City utilizes this relationship for program implementation and income verifications and will support additional Housing Choice Vouchers in the community. Funding Source: U.S. Department of Housing and Urban Development (HUD) Responsible Party: Community Development Department, City Council, San Luis Obispo Housing Authority Timeframe: Ongoing Quantified Objective: Preservation of 230 vouchers in use in Atascadero (data is for the 93422 and 93423 zip codes as provided by HASLO AND may include areas outside the City) Program 4.F: Historic Building Conservation Preserve and protect homes that have historical and architectural significance, such as the Colony homes, through continued implementation of the Historic Site (HS) overlay zone and by maintaining a GIS-based map of historic buildings and sites. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 74 of 216 Atascadero Housing Element 14 | B: Plan Program 4.G: Condominium Conversion Continue enforcing the Condominium Conversion Ordinance (Chapter 12 of the Zoning Regulations) to reduce the impacts of condominium conversions on lower-cost rental housing. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing Program 4.H: Infrastructure Prioritize street and infrastructure improvement projects to benefit high-need areas, including existing high-density residential areas. Funding Source: General Fund (staff time), CDBG Responsible Party: Community Development Department, Public Works Department, City Council Timeframe: Ongoing Program 5.A: Fair Housing Services Continue to provide information and complaint referral services for those persons who believe they have been denied access to housing because of their race, religion, sex, marital status, ancestry, national origin, color, or disability, family status, sexual orientation, source of income, or political affiliation. The City will educate Community Development Department staff on how to respond to complaints received regarding potential claims of housing discrimination. Staff will be trained to provide the person with an informational handout detailing the process of reporting and filing a claim through the California Department of Fair Employment and Housing. The staff will notify the City Manager and the City Attorney’s office of the intent to file a claim and will be available to provide assistance to the person filing a claim, as needed. Information on Fair Housing law and how to file a claim will also be made available on the City’s website and at the Community Development Department. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing; online fair housing information to be available within one year of Housing Element adoption Program 5.B: Affirmatively Further Fair Housing The City will promote and affirmatively further fair housing opportunities and promote housing for all persons, including those protected by the California Fair Employment and Housing Act and any other state and federal fair housing and planning law. The City will:  Ensure that all development applications are considered, reviewed, and approved without prejudice to the proposed residents, contingent on the development application’s compliance with all entitlement requirements.  Accommodate persons with disabilities who seek reasonable waiver or modification of land use controls and/or development standards pursuant to procedures and criteria set forth in the Zoning Regulations.  Work with the County of San Luis Obispo to implement the regional Analysis of Impediments to Fair Housing Choice and HUD Consolidated Plan. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 75 of 216 Atascadero Housing Element B: Plan| 15  Facilitate public education and outreach by creating informational flyers on fair housing that will be made available at public counters, libraries, and on the City’s/County’s website.  Conduct public meetings at suitable times, accessible to persons with disabilities, and near public transit. Resources will be invested to provide interpretation and translation services when requested at public meetings.  Prioritize community and stakeholder engagement during controversial development decisions. Funding Source: General Fund (staff time) Responsible Party: Community Development Department Timeframe: Ongoing 3. Summary of Quantified Objectives Table B.1 summarizes the City’s quantified objectives for the 2020-2028 planning period by income group.  The Construction Objective represents the City’s remaining (after counting as credit the units with approved or issued permits) 2018-2028 RHNA of 266 units, as well as objectives for the density bonus and inclusionary housing programs.  The Rehabilitation Objective represents objectives for the Housing Rehabilitation and Preservation program.  The Conservation/Preservation objective refers to maintenance of the current level of assistance through the Housing Choice (formerly Section 8) Voucher program from the County of San Luis Obispo Housing Authority. Table B.1: Quantified Objectives Objectives Income Levels Total Extremely/ Very Low Low Moderate Above Moderate Construction Objective * 171 105 15 50 341 Rehabilitation Objective 5 5 10 -- 20 Conservation/Preservation Objective 230 -- -- 230 Total 176 110 25 50 361 *Note: The City of Atascadero is not responsible for the actual construction of these units. The City is, however, responsible for creating a regulatory environment in which the private market could build these units. This includes the creation, adoption, and implementation of General Plan policies, zoning standards, and/or incentives to encourage the construction of various types of units. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 76 of 216 Atascadero Housing Element 16 | B: Plan This page intentionally left blank. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 77 of 216 Atascadero Housing Element C: Regional Vision| 1 C. Regional Vision for Housing In early 2020, local agencies adopted a San Luis Obispo Countywide Regional Compact to establish a united regional framework to unlock our potential to develop an adequate supply of housing and infrastructure that support our economic prosperity. 1. Overview San Luis Obispo County is a rural coastal county with seven vibrant cities and numerous unincorporated communities that depend on collaborative relationships between and among government agencies, community organizations, and residents to solve the region’s significant issues including inadequate supply of affordable housing and resilient water, wastewater, and transportation infrastructure and resources. The County and all seven Cities are working collaboratively to develop the region’s first Regional Infrastructure and Housing Strategic Action Plan (Regional Plan) that will identify actions to address these issues. A key component of the Regional Plan is the integration of efforts to address critical housing and related infrastructure needs. As part of the Housing Element update process, representatives of the County, seven Cities and San Luis Obispo Council of Governments (SLOCOG) developed this chapter to showcase the ongoing commitment of each agency to this collaborative effort. This Chapter presents a regional vision and policies focused specifically on fostering regional collaboration to plan and develop housing and supportive infrastructure. 2. Alignment with Regional Compact This effort is guided by the San Luis Obispo Countywide Regional Compact (Regional Compact). The Regional Compact, adopted by each jurisdiction in early 2020, outlines six shared regional goals to guide collaborative resolution of underlying housing and infrastructure needs: Goal 1. Strengthen Community Quality of Life – We believe that our Region’s quality of life depends on four cornerstones to foster a stable and healthy economy for all: resilient infrastructure and resources, adequate housing supply, business opportunities, and educational pathways. Goal 2. Share Regional Prosperity – We believe that our Region should share the impacts and benefits of achieving enduring quality of life among all people, sectors and interests. Goal 3. Create Balanced Communities – We believe that our Region should encourage new development that helps to improve the balance of jobs and housing throughout the Region, providing more opportunities to residents to live and work in the same community. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 78 of 216 Atascadero Housing Element 2 | C: Regional Vision Goal 4. Value Agriculture & Natural Resources – We believe that our Region’s unique agricultural resources, open space, and natural environments play a vital role in sustaining healthy local communities and a healthy economy, and therefore should be purposefully protected. Goal 5. Support Equitable Opportunities – We believe that our Region should support policies, actions, and incentives that increase housing development of all types, available to people at all income levels. Goal 6. Foster Accelerated Housing Production – We believe that our Region must achieve efficient planning and production of housing and focus on strategies that produce the greatest impact. 3. Policies It will take regional collaboration and local actions to realize the vision and goals outlined in the Regional Compact. Below is an initial list of aspirational regional policies that further the Regional Compact vision, in addition to local policies. By listing these below, it does not mandate any individual agency to implement actions, but rather offers ways that the County, cities, SLOCOG, and other partners can consider moving forward, together. In addition, and consistent with each Housing Element cycle, each of the seven cities and the County has the opportunity to choose to implement local policies and programs that help to support their achievement of its RHNA, and if an agency chooses to, can also support the Regional Compact vision and goals in a way that works for its jurisdiction and community. See Section B for local programs and policies for Atascadero’s anticipated actions during this Housing Element cycle. R-1: Promote awareness and support of regional efforts that further housing and infrastructure resiliency by utilizing community engagement, and consistent and transparent communication. R-2: Encourage an adequate housing supply and resilient infrastructure, services, and resources to improve the balance of jobs and housing throughout the Region. R-3: Develop inter-agency partnerships as appropriate to implement goals and policies related to housing and infrastructure. R-4: Coordinate State, Federal, and other funding opportunities for housing and infrastructure development throughout the Region. R-5: Encourage developers to sell newly constructed housing units to individuals residing or employed within the area of the development (a city or the County) first before selling to individuals from outside the County, to promote local preference. R-6: Encourage rental units be prioritized for long term residents rather than short term users or vacation rentals. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 79 of 216 Atascadero Housing Element C: Regional Vision| 3 R-7: Support housing development that is located within existing communities and strategically planned areas. R-8: Encourage regional collaboration on a menu of housing types, models, and efforts to support streamlined approvals for such developments (i.e. Accessory Dwelling Units, etc.). 4. Moving Forward The County, cities, SLOCOG, and other partners engaged in housing and infrastructure development will continue to collaborate on efforts moving forward – recognizing the benefits of working together to achieve an enduring quality of life among the region’s people, sectors and interests. This ongoing collaboration will include learning from each other and sharing possible tools, policies and actions that can allow the collective region to move towards our adopted Regional Compact vision. Ongoing collaborative efforts will be described in the Regional Plan, anticipated to be complete in 2021, and related regional efforts will live outside of each individual agency’s Housing Element. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 80 of 216 Atascadero Housing Element 4 | C: Regional Vision This page intentionally left blank. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 81 of 216 Atascadero Housing Element D: Needs Assessment| 1 D. Housing Needs Assessment To best understand the types of housing that will be needed to meet future demand, Housing Element law (California Government Code Section 65583[a][1] and 65583[a][2]) requires that this Housing Element assess population demographics and economic characteristics. Characteristics such as age, ethnicity, and employment influence the type and cost of housing needed or in high demand. Tracking changes in the demographics can also help City leaders better respond to or anticipate changing housing demand. This chapter also details the housing stock characteristics of the City to identify how well the current housing stock meets the needs of current and future residents. The identified demographic patterns and trends serve as the basis for crafting the City’s housing policies and programs. 1. Population, Employment and Household Trends The Atascadero population grew seven percent between 2010 to 2018. In 2018, the City had an estimated population of 30,037 persons. Growth in Atascadero was slower than growth seen in Paso Robles (10 percent) but more than in the City of San Luis Obispo (5 percent) and County of San Luis Obispo (6 percent) during the same period. The San Luis Obispo Council of Governments (SLOCOG) estimates in the 2050 Regional Growth Forecast for San Luis Obispo County that the population in Atascadero will grow to 34,538 persons by 2050, a 15 percent increase from 2018. See Table D.1 for detailed population information for Atascadero and surrounding communities. Table D.1: Trends in Population Growth Jurisdiction 2010 2018 2010-2018 Number Number Change Atascadero 27,981 30,037 7% Paso Robles 28,794 31,656 10% San Luis Obispo 44,959 47,160 5% San Luis Obispo County 265,577 281,455 6% Source: U.S. Census, 2010 and 2018 ACS (5-year estimates) Age Characteristics In 2018, Atascadero had a median age of 38.3, slightly below the median for San Luis Obispo County of 39.1. Table D.2 shows substantial growth in the 65 and above age groups from 2010 to 2018, while the populations in the 45-54 age groups had the greatest decrease over the same period. This is similar to trends seen across the state, in which the proportion of individuals over the age of 50 has increased significantly over the past 10 years, while middle age groups are declining. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 82 of 216 Atascadero Housing Element 2 | D: Needs Assessment Table D.2: Age Distribution Age Group 2010 2018 Percent Change Number of Persons Percent of Total Number of Persons Percent of Total < 15 4505 16% 5,354 18% 2% 15-24 3,861 14% 3,402 11% -2% 25-34 3582 13% 4,321 14% 2% 35-44 3945 14% 3,949 13% -1% 45-54 4925 18% 3,478 12% -6% 55-64 3945 14% 4,664 16% 1% 65+ 3246 12% 4,869 16% 5% Total 27,981 100% 30,037 100% 7% Source: U.S. Census, 2010 and 2018 ACS (5-year estimates) Race and Ethnicity The racial and ethnic composition of Atascadero residents has not changed much since 2010. As of 2018, the majority of residents in Atascadero are white (76 percent, down one percent from 2010). Hispanic/Latino residents make up 17 percent of the population, an increase of one percent since 2010. Between 2010 and 2018, there was a decrease in the proportion of Black residents, from two percent of the population to one percent. Table D.3: Trends in Race and Ethnicity Race/Ethnicity 2010 2018 Number Percent Number Percent White (Not Hispanic/Latino) 21,742 77% 22,937 76% Hispanic/Latino 4,429 16% 5,132 17% Black or African American 551 2% 206 1% Asian or Pacific Islander 693 2% 517 2% American Indian 179 1% 100 0.3% Other/Two or More 716 3% 1,145 4% Total 27981 100% 30,037 100% Source: U.S. Census, 2010 and 2018 ACS (5-year estimates) Employment The major industries employing Atascadero residents are shown below. From 2010 to 2018, the total number of employed residents increased from 12,828 to 15,361. As of 2018, the Education, Health, and Social Services industry accounted for the largest share of Atascadero employment, accounting for 28 percent, a one percent decrease from 2010. Retail trade is the second largest industry, offering 12 percent of total jobs, followed closely by Professional, Scientific, Management, Administrative, and Waste Management services at 10 percent of the jobs, a 35 percent increase from 2000. Retail trade and Finance, insurance, real estate and rental and leasing both had two-percent job losses from 2010 to 2018. The ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 83 of 216 Atascadero Housing Element D: Needs Assessment| 3 SLOCOG 2050 Regional Growth Forecast estimates employment in Atascadero to increase to 10,742 jobs by 2050. Table D.4: Employment by Industry Employment Sector 2010 2018 Percent Change Number Percent Number Percent Educational, health and social services 3,717 29% 4,336 28% -1% Retail trade 1,481 12% 1,545 10% -2% Professional, scientific, management, administrative, and waste management services 1,317 10% 1,479 10% 0% Construction 1,129 9% 1,396 9% 0% Public administration 1,089 8% 1,205 8% 0% Arts, entertainment, recreation, accommodation and food services 821 6% 1,328 9% 3% Manufacturing 760 6% 1,013 7% 1% Transportation and warehousing, and utilities 691 5% 787 5% 0% Finance, insurance, real estate, and rental and leasing 641 5% 491 3% -2% Other services 583 5% 892 6% 1% Wholesale trade 268 2% 328 2% 0% Agriculture, forestry, fishing and hunting, and mining 180 1% 270 2% 1% Information 151 1% 291 2% 1% Total 12,828 100% 15,361 100% 20% Source: U.S. Census, 2010 and 2018 ACS (5-year estimates) Census data show that higher-paying managerial/professional jobs are decreasing among Atascadero residents, while typically lower-paying service jobs are increasing. In 2018, 33 percent of Atascadero residents held managerial/professional jobs, representing a seven percent decrease in this job category from 2010 compared with a four percent increase in service jobs during that same time. Table D.5: Employment by Occupation Occupations of Residents 2010 2018 Percent Change Persons Percent Persons Percent Managerial/Professional 5,105 40% 6559 33% -7% Sales and Office 3,326 26% 3072 25% -1% Services 2,091 16% 3103 20% 4% Natural resources, construction, and maintenance occupations 1,308 10% 1720 13% 3% Production, transportation, and material moving occupations 998 8% 906 10% 2% Total 12,828 100% 15,361 100% 20% Source: U.S. Census, 2006-2010 and 2018 ACS (5-year estimates) ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 84 of 216 Atascadero Housing Element 4 | D: Needs Assessment Household Characteristics Household composition and size are often interrelated and are indicators of the type of housing appropriate for Atascadero residents. Most householders (head of household) in Atascadero are 35 to 65 years old, although the proportion of householders in this age group has decreased by six percent since 2010. From 2010 to 2018, the number of householders over the age of 65 increased from 22 to 25 percent. The percentage of family households fell slightly from 69 percent in 2010 to 68 percent in 2018. The average household size increased from 2.51 in 2010 to 2.56 in 2018. Table D.6: Household Characteristics 2010 2018 Percent Change Number Percent Number Percent Avg. Household Size 2.51 2.56 2% Households by Age Householders < 35 yrs. 1,953 18% 2,433 21% 3% Householders 35-65 yrs. 6,465 60% 6,242 54% -6% Householders 65+ yrs. 2,319 22% 2,905 25% 3% Household Types Family Households 7,404 69% 7,856 68% -1% Married Couple 5,681 77% 6,279 54% -23% Other Families 1,723 23% 1,577 14% -9% Non-Family Households 3,333 31% 3,724 32% 12% Total 10,737 100% 11,580 100% 8% Source: U.S. Census, 2010 and 2018 ACS (5-year estimates) Household Income According to the U.S. Census, the median household income in Atascadero increased from $65,479 in 2010 to $69,587 in 2018. The largest increase occurred within the $100,000 or more income brackets. The less than $10,000 income category also grew by one percent between 2010 and 2018. For the purposes of the Housing Element, the State Department of Housing and Community Development (HCD) has established five income groups based on Area Median Income (AMI):  Extremely Low Income: up to 30 percent of AMI  Very Low Income: 31-50 percent of AMI  Low Income: 51-80 percent of AMI  Moderate Income: 81- 120 percent AMI  Above Moderate Income: >120 percent AMI ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 85 of 216 Atascadero Housing Element D: Needs Assessment| 5 Table D.7: Household Income Income Group 2010 2018 Percent Change Households Percent Households Percent Less than $10,000 355 3% 439 4% 1% $10,000 to $14,999 556 5% 529 5% 0% $15,000 to $24,999 817 8% 776 7% -1% $25,000 to $34,999 957 9% 799 7% -2% $35,000 to $49,999 1,409 13% 1,361 12% -1% $50,000 to $74,999 2,070 20% 2,104 19% -1% $75,000 to $99,999 1,533 15% 1,834 16% 1% $100,000 or more 2,756 26% 3,409 30% 4% Total Households 10,453 100% 11,250 100% 8% Median household income $65,479 $69,587 6% Source: U.S. Census, 2010 and 2018 ACS (5-year estimates) AMI refers to the median income for the Metropolitan Statistical Area. For the City of Atascadero, this area refers to San Luis Obispo County. HUD periodically receives "custom tabulations" of Census data from the Census Bureau that are largely not available through standard Census products. The most recent estimates are derived from the 2012-2016 ACS. This dataset, known as the "CHAS" data (Comprehensive Housing Affordability Strategy), demonstrates the extent of housing problems and housing needs, particularly for lower-income households in the County and City shown on Table D.8. Table D.8: Household Distribution by Income Group Jurisdiction Total HHs Extremely Low Income (0-30% MFI) Very Low Income (31- 50% MFI) Low Income (51-80% MFI) Moderate/ Above-Moderate Income (81% + MFI) City of Atascadero 11,250 1,385 (12%) 885 (8%) 1,870 (17%) 7,110 (63%) County of San Luis Obispo 104,405 15,005 (14%) 11,470 (11%) 17,625 (17%) 60,305 (58%) Note: Because HUD programs do not cover households with incomes above 80 percent of the County AMI, CHAS data do not provide any breakdown of income groups above 80 percent MFI (Median Family Income). Data presented in this table are based on special tabulations from sample Census data. The number of households in each category usually deviates slightly from the 100% count due to the need to extrapolate sample data out to total households. Interpretations of this data should focus on the proportion of households in need of assistance rather than on precise numbers. Sources: HUD CHAS Data, 2012-2016 2. Special Needs Groups Certain groups have more difficulty finding decent, affordable housing due to their special circumstances. Special circumstances may be related to one's income-earning potential, family characteristics, the presence of physical or mental disabilities, or age-related health issues. As a result, certain groups typically earn lower incomes and have higher rates of overpayment for housing or live in overcrowded housing. A ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 86 of 216 Atascadero Housing Element 6 | D: Needs Assessment central goal of the Housing Element is to identify persons with special needs who need assistance in meeting their housing needs. Housing Element law specifically requires quantification of the housing need for seniors, persons with disabilities, large families, female-headed households, persons and families experiencing homelessness, and farmworkers. Senior Population Senior households are included in those with special housing needs due to the likelihood of limited income, physical disabilities, or higher health care costs. As illustrated in Table D.9, 2,905 Atascadero households (25 percent) were headed by seniors (persons age 65 years and older) in 2018. Seniors typically have special needs due to disabilities, health care needs, and fixed incomes. Seniors may also require assistance with domestic chores and activities such as driving, cooking, cleaning, showering, or climbing stairs. For elderly people who live alone or do not have relatives to care for them, the need for assistance may not be met. The special needs of seniors can by met through congregate care, rent subsidies, shared housing, and housing rehabilitation assistance. For the frail or disabled elderly, housing with architectural design features that accommodate disabilities can help extend the ability to live independently. In addition, seniors with mobility/self-care limitations benefit from transportation options. As of 2020, there are 33 residential and group care facilities offering 361 units in Atascadero. The facilities offer a range in level of assistance and community structure. Table D.9: Senior Households Householder by Age Owner Renter Total Number Percent Number Percent Number Percent Total 65 and over 2,396 33% 509 12% 2,905 25% 65 to 74 years 1,250 17% 258 6% 1,508 13% 75 to 84 years 898 12% 150 4% 1048 9% 85 years & over 248 3% 101 2% 349 3% Total 64 and under 4,960 67% 3,715 88% 8,675 75% Total (all ages) 7,356 100% 4,224 100% 11,580 100% Source: U.S. Census ACS 5-Year Estimates Subject Tables 2018 Persons with Disabilities Persons with disabilities have special housing needs because of employment and income challenges, the need for accessible and appropriate housing, and higher health care costs. A disability is defined broadly by the U.S. Census Bureau as a physical, mental, or emotional condition that lasts over a long period of time and makes it difficult to live independently. Census Bureau data captures six types of disabilities:  Hearing Difficulty: Deaf or having serious difficulty hearing  Vision Difficulty: Blind or having serious difficulty seeing, even when wearing glasses  Cognitive Difficulty: Because of a physical, mental, or emotional problem, having difficulty remembering, concentrating, or making decisions ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 87 of 216 Atascadero Housing Element D: Needs Assessment| 7  Ambulatory Difficulty: Having serious difficulty walking or climbing stairs  Self-Care Difficulty: Having difficulty bathing or dressing  Independent Living Difficulty: Because of a physical, mental, or emotional problem, having difficulty doing errands alone such as visiting a doctor’s office or shopping In 2018, Census ACS data estimated that 3,501 residents in Atascadero had a disability. More than one- third of disabilities were reported by residents age 65 years or older, who may face additional housing needs, as described in the senior population discussion. Among disabled residents under 65 years of age, cognitive and independent living disabilities were most prevalent. For residents over the age of 65 years, ambulatory and hearing disabilities were most prevalent. Section E: Housing Constraints of this Housing Element addresses governmental constraints for persons with disabilities in Atascadero. Table D.10: Disability Characteristics Disability/Age Group Number Percent Persons with a Disability 3,501 11.7% Total Disabilities Ages 5-64 1,830 7% Hearing Disability 428 2% Vision Disability 364 1% Cognitive Disability 889 4% Ambulatory Difficulty 430 2% Self Care Disability 337 1% Independent Living Difficulty (18-64 years) 672 4% Total Disabilities Ages 65 and Over 1,671 35% Hearing Disability 894 19% Vision Disability 4,808 5% Cognitive Disability 413 9% Ambulatory Difficulty 1,166 24% Self Care Disability 355 7% Independent Living Difficulty 496 10% Source: U.S. Census, 2018 ACS (5-year estimates) Persons with Developmental Disabilities According to Section 4512 of the Welfare and Institutions Code a “developmental disability” means a disability that originates before an individual attains age 18 years, continues, or can be expected to continue indefinitely, and constitutes a substantial disability for that individual, which includes mental retardation, cerebral palsy, epilepsy, and autism. This term does not include other handicapping conditions that are solely physical in nature. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 88 of 216 Atascadero Housing Element 8 | D: Needs Assessment Many persons with developmental disabilities can live and work independently within a conventional housing environment. Individuals with more severe developmental disabilities require a group living environment where supervision is provided. The most severely affected individuals may require an institutional environment where medical attention and physical therapy are provided. Because developmental disabilities exist before adulthood, the first issue in supportive housing for the persons with developmental disabilities is transition from the person’s living situation as a child to an appropriate level of independence as an adult. The State Department of Developmental Services (DDS) currently provides community-based services to approximately 330,000 persons with developmental disabilities and their families through a statewide system of 21 regional centers, four developmental centers, and two community-based facilities. The Tri- Counties Regional Center (TCRC) is one of 21 regional centers in the State of California that provides point of entry to services for people with developmental disabilities who reside in Ventura, Santa Barbara, and San Luis Obispo Counties. TCRC is a private, non-profit community agency that contracts with local businesses to offer a wide range of services to individuals with developmental disabilities and their families. As of 2020, TCRC served approximately 14,000 people in its three-county area, with 340 staff members. Table D.11 shows the number of individuals served by TCRC in the 93422 ZIP code, which includes the City of Atascadero. (Note: The boundary of this ZIP code extends beyond the borders of Atascadero city limits.) Table D.11: Persons with Developmental Disabilities served by TCRC, 2020 Zip Code 0-14 years 15-22 Years 23-54 years 55-65 years 65+ years Total 93422 200 69 215 42 40 566 Source: Tri-County Regional Center, 2020 A number of housing types are appropriate for people living with a development disability: rent subsidized homes, licensed and unlicensed single-family homes, inclusionary housing, Housing Choice Voucher (formerly Section 8), special programs for home purchase, HUD housing, and SB 962 homes. The design of housing accessibility modifications, proximity to services and transit, and availability of group living opportunities represent the types of considerations important in serving this need group. Incorporating barrier-free design in all, new multi-family housing (as required by California and federal Fair Housing laws) is especially important to provide the widest range of choices for disabled residents. Special consideration should also be given to affordability of housing, as people with disabilities may be living on a fixed income. Large Families Large families or large households are defined as those families or groups of people containing five or more persons. Analysis of changes in the number of large families/groups is essential because of their distinctive demand on local housing resources. In 2018, over 1,000 households (or nine percent of Atascadero households) were made up of five or more persons. Large households may have trouble finding suitable units, particularly renter-occupied households, which are much less likely to find three or more-bedroom units. Table D.12 shows that while renter households make up a smaller fraction of households compared with owner households they comprise a larger proportion of large households. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 89 of 216 Atascadero Housing Element D: Needs Assessment| 9 Table D.12: Household Size by Tenure Tenure 1-4 Persons 5+ Persons Total Percent Number Percent Number Percent Owner-Occupied 6,733 92% 623 8% 7,356 64% Renter-Occupied 3,822 90% 402 10% 4,224 36% Total 10,555 91% 1,025 9% 11,580 100% Source: U.S. Census, 2018 ACS (5-year estimates) Female-Headed Households As of 2018, 14 percent (1,577) of Atascadero households were single-parent families; most single-parent families were headed by women. Housing problems for this group can be significant. Any household with only one person able to earn wages is at a significant disadvantage in the housing market and single parents may have to take more time off from work to care for their children. Single-parent households are at a higher risk of becoming homeless because of lower incomes and the lack of affordable housing and support services. The U.S. Census estimates that of the 467 families with children living in poverty in 2018 in Atascadero, almost half (49%) percent were headed by women. Planning for housing development to serve single-parent families may require on-site childcare facilities. Table D.13: Single-Parent Households, 2018 Household Type Total Percent Married Couple 6,279 54% Married Couple with Children 2,289 20% Female householder, No Partner Present 1,117 10% Female householder, No Partner Present, With Children 687 6% Male householder, No Partner Present 460 4% Male householder, No Partner Present with Children 107 1% Non-Family Households 3,724 32% Total Households 11,580 100% Source: U.S. Census, 2018 ACS (5-year estimates) Persons in Need of Emergency Shelter State housing element law requires the analysis of the special housing requirements of persons and families in need of emergency shelter and identification of adequate sites that will be made available with appropriate zoning and development standards, and with public services and facilities needed to facilitate the development of emergency shelters and transitional housing. More recently, the 2019 San Luis Obispo County Homeless Point-In-Time Census & Survey estimates a homeless population of 1,483 in San Luis Obispo County. This represents a 31.8 percent increase in the homeless population in San Luis Obispo County from 2019. Based on this count, an estimated 1,172 persons will be without shelter at some point during the year. Of those surveyed in the County, 84 percent ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 90 of 216 Atascadero Housing Element 10 | D: Needs Assessment were chronically homeless, 74 percent lived in San Luis Obispo County before becoming homeless, 82 percent were unsheltered, 57 percent indicated mental health issues, including post-traumatic stress disorder, 10 percent were minors, and 11 percent were between 18 and 24 years old. Consistent with HUD definition of homeless, the report did not include families living doubled up with other families or those living in RV or trailer parks in the count of homeless. The Point-In-Time Census & Survey estimated there were 102 sheltered and 71 unsheltered homeless persons in Atascadero. Twenty-three percent of persons experiencing homelessness in North County were living on the streets, and 26 percent are in an emergency or transitional shelter. Atascadero participates in local efforts to assist the homeless and those in need of temporary shelter. Atascadero amended its Zoning Regulations to allow for an Emergency Shelter Overlay Zone. This zone provides an area where an emergency shelters are permitted without a Conditional Use Permit in compliance with Senate Bill 2. Currently, one site is zoned and operating an existing emergency shelter within the Emergency Shelter Overlay Zone (APN 030-341-013) with a capacity of 60 beds (this capacity reflects an increase in beds implemented in 2019). In August 2019, ECHO became the North County’s first round-the-clock shelter. This facility is also the only permanent and year-round overnight shelter in North County. Prior to the zoning amendment to permit emergency shelters at this site, the emergency shelter was at risk of permanent closure. To ensure the new ordinance was not overly restrictive, the City worked closely with El Camino Housing Organization (ECHO), the non-profit organization that addresses homelessness issues and operates this facility. Program 2.H in the Housing Plan is included to continue cooperation with non- profit groups and local religious organizations to allow the temporary use of churches as homeless shelters and to support local assistance programs such as emergency food provision and motel voucher programs (funded by CDBG funds) for temporarily displaced and extremely low-income persons. Transitional Food and Shelter operates the Medically Fragile Homeless program, a county-wide service, based in Atascadero and the Atascadero Warming Center which serves those living in Atascadero and surrounding areas. The Medically Fragile Homeless program (MFH) provides small, individual housing, supportive services and case management for the medically fragile homeless in San Luis Obispo County which it has operated since 2001. Temporary housing is provided for persons who have a medically verified need for 24/7 non-congregate care for a period of 3 to 90 days. Those in need of MFH housing must be referred by an agency, organization, physician and/or hospital. MFH is behaviorally based, has no income requirement, and allows other members of the client’s immediate household including one pet to live in the unit. The Atascadero Warming Center (AWC) is open November 1st through April 15th when the temperature is forecast to be 40 degrees or less and/or there is a 50% chance or greater of rain. The low barrier, behaviorally based center provides meals, clothing and other services through a volunteer effort. The goal of the shelter is to provide a warm, safe and welcoming environment that serves as a navigation center to connect those seeking shelter (individuals and families) with the services they need. In 2019-2020, the center will be located at The Lutheran Church of the Redeemer in Atascadero through the generosity of their Pastor and parishioners. Farmworkers The number of farmworkers in Atascadero is difficult to quantify, as U.S. Census data frequently underestimate this population. However, according to the U.S. Census, in 2018, 270 Atascadero residents ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 91 of 216 Atascadero Housing Element D: Needs Assessment| 11 were employed in agriculture, forestry, fishing and hunting, and mining. This represents approximately two percent of the total population. From 2010 to 2018, the number of residents working under this Census category doubled. The City has approximately 43.8 acres of designated agriculture, comprising five separate parcels currently under one owner. These parcels are being utilized as a Christmas tree farm to grow and sell seasonal Christmas trees. Atascadero Municipal Code Section 9-3.122(o) allows for “farm labor quarters” as a permitted use, where no CUP is required, in all Agriculture zones. Agriculture uses are conditionally allowed in the RS zone for uses such as crop production and grazing. This category is defined as “Agricultural uses including the production of grains, field crops, vegetables, melons, fruits, tree nuts, flower fields and seed production, tree and sod farms, crop services and crop harvesting. Also includes the raising or feeding of beef cattle, sheep and goats by grazing or pasturing.” The Employee Housing Act (Government Code Section 17021.5 and 17021.6) requires that any employee housing occupied by six or fewer employees shall be considered a single-family structure with a residential land use, and must be treated the same as a single-family dwelling of the same type in the same zone. In addition, employee housing consisting of no more than 36 beds in a group quarters, or 12 units or separate rooms or spaces designed for use by a single-family or household, must be considered an agricultural land use and be treated the same as any other agricultural activity in the same zone. The Atascadero Zoning Regulations identify one agricultural zone which permits agricultural operations and complies with the requirements of the Employee Housing Act. In addition, the RS zone allows agricultural uses with a Conditional Use Permit (CUP). To comply with the Employee Housing Act in the RS zone, Program 3.O is included in this Housing Element. While there are very few agricultural parcels in the City, Atascadero is surrounded by land devoted to agricultural uses, including vineyards. It is likely that farmworkers may be housed on site at agricultural operations outside Atascadero. The United States Department of Agriculture periodically completes a census of farms and their characteristics. The most recent data (2017) provides an overview of farm operations in San Luis Obispo County: • There are 879 farm operations with hired workers in San Luis Obispo County. • These farm operations employ 11,416 hired workers, with a total payroll of $179,701,000. • In 2017, there were 550 farms where farmworkers worked 150 days or more, employing 4,735 workers. A total of 588 farms employed 6,681 workers fewer than 150 days per year.1 1 Total farms do not sum to 879 because some farms employed certain workers more than 150 days and certain workers fewer than 150 days. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 92 of 216 Atascadero Housing Element 12 | D: Needs Assessment • There are two Joe Serna Farm Worker Grant Program housing projects in the county, with 83 total units. There are four additional employee housing facilities in the county; three are permanent and one is seasonal. The three permanent facilities house 79 employees, and the one seasonal facility houses 16 employees. Farmworkers have the lowest family income and highest poverty rate of any occupation surveyed by the Census Bureau. Throughout the county, the housing needs of farmworkers can be supported with additional affordable housing. The State Housing and Community Development Department administers more than 20 programs that award loans and grants to local public agencies, private non-profit and for- profit housing developers, and service providers every year. This money supports the construction, acquisition, rehabilitation and preservation of affordable rental and ownership housing, childcare facilities, homeless shelters and transitional housing, public facilities and infrastructure, and the development of jobs for low-income workers. Many of these programs and funding sources can be utilized to provide housing for farmworkers. Definition of Family Local governments may unintentionally restrict access to housing for households failing to qualify as a “family” by the definition specified in the Zoning Regulations. Specifically, a restrictive definition of “family” that limits the number of and differentiates between related and unrelated individuals living together may illegally limit the development and siting of group homes for persons with disabilities, but not housing for families that are similarly sized or situated. The Atascadero Zoning Regulations defines “family” as a “single housekeeping unit” defined as the functional equivalent of a traditional family, whose members are an interactive group of persons jointly occupying a single dwelling unit, and where, if the unit is rented, all adult residents have chosen to jointly occupy the entire premises of the dwelling unit, under a single written lease with joint use and responsibility for the premises, and the makeup of the household occupying the unit is determined by the residents of the unit rather than the landlord or property manager. This definition does not discriminate nor limit access to housing for persons with disabilities. The Atascadero Zoning Regulations also include a definition for “immediate family”: relatives of an applicant or spouse of applicant, limited to grandparents, parents, children, and siblings. Program 3.N is included to remove this definition and all regulations that are related to this definition (including Section 9-6.107(a)(1)(i), which requires immediate family to occupy accessory dwelling units in the A zone) from the Zoning Regulations. 3. Housing Characteristics Tenure and Vacancy Housing tenure refers to the occupancy of a housing unit—whether the unit is owner-occupied or renter- occupied. Housing tenure is influenced by demographic factors (e.g., household income, composition, and age of the householder), as well as housing cost. Among occupied units, the percentage of owner- occupied homes increased from 59 percent in 2010 to 61 percent in 2018. Renter-occupied units make ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 93 of 216 Atascadero Housing Element D: Needs Assessment| 13 up just 35 percent of all occupied units. Countywide, renter-occupied units make up 39 percent of all occupied units. As of 2018, four percent of Atascadero’s housing units were estimated to be vacant. This is three percent lower than 2010, when the vacancy rate was seven percent. Table D.14: Tenure and Vacancy Tenure 2010 2018 Number Percent Number Percent Occupied Units 10,737 93% 11,580 96% Owner 6,827 59% 7,356 61% Renter 3,910 34% 4,224 35% Vacant Units 768 7% 449 4% Total 11,505 100% 12,029 100% Source: U.S. Census, 2010, 2018 ACS (5-year estimates) Housing Type and Age Single-family homes make up more than three-quarters of Atascadero’s housing stock. The variety of housing types has remained stable over the period from 2010 to 2018, with slight growth in single-family homes (detached) and a slight decline in the proportion of mobile homes. Table D.15: Trends in Housing Type Housing Type 2010 2020 Units Percent Units Percent Single-Family Detached 8,068 72% 8,563 70% Single-Family Attached 427 4% 538 4% Multi-Family 2-4 Units 1,030 9% 1,078 9% Multi-Family 5+ Units 1,241 11% 1,443 12% Mobile Homes 517 5% 533 4% Other (e.g., R.V Park) 0 0% 0 0% Total Units 11,283 100% 12,155 100% Source: U.S. Census 2010, Department of Finance Population and Housing Estimates, 2020 The category of “multi-family 2-4 units” may also be referred to as the “missing middle” housing. Missing middle housing is a range of house-scale buildings with multiple units that are compatible in scale and form with detached single-family homes. Examples include duplexes, triplexes, bungalow courts, and courtyard apartments. Certain Colony Homes that have been divided into smaller units are an excellent example of missing middle housing in the Atascadero style. Housing Age and Condition Housing ages and deteriorates over time. If not regularly maintained, structures can deteriorate and discourage reinvestment, depress neighborhood property values, and even become health hazards. Maintaining and improving housing quality is an important goal for communities. Housing age can be an indicator of the need for housing rehabilitation. Generally, housing older than 30 years (i.e., built before 1990), while still needing rehabilitation, will not require rehabilitation as substantial as what would be ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 94 of 216 Atascadero Housing Element 14 | D: Needs Assessment required for housing units older than 50 years old (i.e., built before 1970). Housing units older than 50 years are more likely to require complete rehabilitation of housing systems such as roofing, plumbing, and electrical. According to the U.S. Census, more than half, or 69 percent, of Atascadero’s housing stock was built prior to 1990 (30 years or older) and close to one quarter (24 percent) of Atascadero’s housing stock was built prior to 1970 (50 years or older). City staff conducted a visual housing conditions survey in June 2009. To complete the survey, the City randomly selected and evaluated 200 properties and found that all but three were structurally sound. The survey was conducted through a windshield assessment that rated the physical condition of a unit. Utilizing the same methodology, in 2019 staff re-reviewed the same 200 properties from the 2009 survey. Two properties were found not to be structurally sound yet required only minor repairs. Based upon observations and experiences of the code enforcement and planning staff, the City estimates that in 2020, fewer than 20 housing units may be considered to be in severe need of replacement or substantial rehabilitation due to housing conditions. Table D.16: Housing Units by Age Year Built Units Percent Built 2014 or later 123 1% Built 2010 to 2013 245 2% Built 2000 to 2009 1,945 16% Built 1990 to 1999 1,557 13% Built 1980 to 1989 2,272 19% Built 1970 to 1979 3,067 26% Built 1960 to 1969 1,298 11% Built 1950 to 1959 861 7% Built 1940 to 1949 312 3% Built 1939 or earlier 349 3% Total 12,029 100% Source: U.S. Census, 2018 ACS (5-year estimates) 4. Housing Cost and Affordability Housing Costs The median sale price of all homes (single-family units and condominium units) sold in Atascadero was $452,500 in 2020, according to CoreLogic. CoreLogic data combine sales activity for single-family units and condominium units. The median sales prices in 2020 was 13 percent lower than the previous year. Zillow.com provides estimates for single-family units and condominium units separately and its data shows a median sales price of $516,000 for single-family homes and $490,000 for condominiums. Zillow.com data contradicts the CoreLogic data in that it shows increasing median sales values even as CoreLogic shows a median 2020 sales prices lower than the previous year. Even though the sales price trend contradicts CoreLogic data, the Zillow.com data can be used to compare median home prices in ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 95 of 216 Atascadero Housing Element D: Needs Assessment| 15 Atascadero and neighboring cities from 2015 to 2020. Median home sales prices in Atascadero are shown to be lower than neighboring cities and the County. Figure D.1: Median Home Prices 2015-2020 Source: Zillow.com Home Prices and Home Values, accessed March 3, 2020 According to the U.S. Census 2018 ACS 5-year estimates, the median rent in Atascadero was $1,337 per month. The median rents in Atascadero are lower than the County median rents as estimated by HUD 50th Percentile Rent Estimates. Table D.17: Median Rents Number of Bedrooms City of Atascadero Median Gross Rent San Luis Obispo-Paso Robles-Arroyo Grande, CA MSA 50 percentile rents HUD No bedroom $872 $1,243 1 bedroom $955 $1,374 2 bedrooms $1,279 $1,786 3 bedrooms $1,813 $2,576 4 bedrooms $2,128 $3,136 Median Rent $1,337 $1,385 Sources: U.S. Census, 2018 ACS (5-year estimates); U.S. Department of Housing and Urban Development 50th Percentile Rent Estimates, 2020 Housing Affordability Housing affordability in Atascadero can be inferred by comparing the cost of renting or owning a home with the income levels of households of different sizes. Table D.18 shows the annual income ranges for extremely low-, very low-, low-, and moderate-income households and the maximum affordable monthly rental payment based on 30 to 35 percent of gross household income as affordable housing costs ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 96 of 216 Atascadero Housing Element 16 | D: Needs Assessment (depending on tenure and income level as defined by HUD). The table also displays the maximum affordable home sale or rental price based on income category and unit size. Homes priced at the 2020 median sales prices of $452,500 for Atascadero are affordable only to households in the upper end of the moderate-income range. Thus, home ownership is out of range for many moderate and all low-, very low- and extremely low-income households. Average rents are affordable for moderate-income households but are unaffordable without overpayment or overcrowding for households earning at the extremely low-, very low-, and low-income levels. Table D.18: Affordable Housing Costs by Household Size and Tenure, 2019 Income Group Annual Income Limits Renter Owner Home (purchase price) Rental (per month) Extremely Low (0-30% AMI) 1-Person $18,900 $473 $473 $55,624 $334 2-Person $21,600 $540 $540 $58,882 $361 3-Person $24,300 $608 $608 $50,503 $339 4-Person $26,950 $674 $674 $62,838 $405 5-Person $30,170 $754 $754 $62,931 $421 Very Low (30-50% AMI) 1-Person $31,500 $788 $788 $114,273 $649 2-Person $36,000 $900 $900 $125,909 $721 3-Person $40,500 $1,013 $1,013 $125,909 $744 4-Person $44,950 $1,124 $1,124 $146,623 $855 5-Person $48,550 $1,214 $1,214 $148,485 $881 Low (50-80% AMI) 1-Person $50,350 $1,259 $1,259 $202,014 $1,120 2-Person $57,550 $1,439 $1,439 $226,218 $1,260 3-Person $64,750 $1,619 $1,619 $238,786 $1,350 4-Person $71,900 $1,798 $1,798 $272,067 $1,529 5-Person $77,700 $1,943 $1,943 $284,169 $1,610 Moderate Income (80-120% AMI) 1-Person $73,500 $1,838 $2,144 $366,790 $1,699 2-Person $84,000 $2,100 $2,450 $414,501 $1,921 3-Person $94,500 $2,363 $2,756 $450,574 $2,094 4-Person $105,000 $2,625 $3,063 $507,594 $2,356 5-Person $113,400 $2,835 $3,308 $538,315 $2,502 Assumptions: California Department of Housing and Community Development 2019 income limits; 30 - 35% gross household income as affordable housing costs (depending on tenure and income level); 20% of monthly affordable cost for taxes and insurance; 10% down-payment, 4% interest rate for a 30-year fixed rate mortgage loan; utilities based on Housing Authority of the City of San Luis Obispo 2019 Utility Allowance for Atascadero. Sources: California Department of Housing and Community Development, 2019; Housing Authority of the of the City of San Luis Obispo, 2019; MIG, 2020. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 97 of 216 Atascadero Housing Element D: Needs Assessment| 17 5. Housing Problems Overcrowding Overcrowding is defined as more than one person per room, not including kitchens and bathrooms. Overcrowding can occur when housing costs are high relative to income where families must double up or reside in smaller units, which tend to be more affordable, to devote income to other basic living needs. This is often a problem for large families but can also occur in smaller households when income is too low to afford adequate housing. Overcrowding also tends to result in accelerated deterioration of homes, a shortage of off-street parking, increased strain on public infrastructure, and additional traffic congestion. As shown in Table D.19, in 2018, one percent of owner-occupied households in Atascadero were overcrowded and three percent of renter-occupied households were overcrowded, of these less than one percent was extremely overcrowded. Table D.19: Overcrowding by Tenure, 2018 Owner-Occupied Units Renter-Occupied Units All Housing Units Housing Units % of all Housing Units Housing Units % of all Housing Units Housing Units % of all Housing Units Overcrowded (1-1.5 persons/room) 69 1% 115 3% 184 2% Severely Overcrowded (>1.5 persons/room) 8 0.1% 32 1% 40 0.3% Total Overcrowded (>1 persons/room) 77 1% 147 3% 224 2% Source: U.S. Census Bureau, ACS 5-Year Estimates 2018 Overpayment High housing costs can cause households to spend a disproportionate percentage of their income on housing. This may result in payment problems, deferred maintenance, or overcrowding. According to federal government standards, paying over 30 percent of income for housing costs is considered to be cost-burdened, and spending more than 50 percent of household income is extremely cost burdened. In Atascadero, a total of 3,925 households overpay for housing. These households are detailed in the following two tables. In Atascadero, overpayment is particularly problematic for renters. Table D.20 shows that one-quarter of all Atascadero renter units pay between 30 and 50 percent of household income on rent, and an additional 15 percent of renters pay more than half of their household income on rent. Overall, 40 percent of renter households (1,738 households) overpay (greater than 30% of income) on housing. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 98 of 216 Atascadero Housing Element 18 | D: Needs Assessment Table D.20: Gross Rent as a Percent of Income, 2018 Percent of Income Spent on Rent Renter-Occupied Units Percent of All Renter- Occupied Units Less than 30% 2,346 56% 30% to 50% 1,179 28% More than 50% 574 14% All Renter-Occupied Units 4,224* 100% Source: U.S. Census Bureau, ACS 5-Year Estimates 2018 *Total does not equate; 125 units not computed. Among homeowners, 37 percent of owners with a mortgage and 10 percent of owners without a mortgage were overpaying for housing. Overall, 30 percent of owner-occupied units (2,187 households) were overpaying for housing. See Table D.21 for monthly housing costs as a percentage of household income for homeowners. Table D.21: Owner Costs as a Percent of Income, 2018 Percent of Income Spent on Monthly Owner Costs Units with a Mortgage Units without a Mortgage All Owner- Occupied Units Units Percent Units Percent Units Percent Less than 30% 3,384 63% 1,760 90% 5,144 70% 30% to 50% 1,160 22% 93 5% 1,253 17% More than 50% 8,30 15% 104 5% 934 13% Total Units 5,374 100% 1,957 100% 7,331 100% Source: U.S. Census Bureau, ACS 5-Year Estimates 2018 Low- and Extremely Low-Income Housing Needs Lower-income households (earning 80 percent or less of the area’s median household income) generally have higher incidence of housing problems and overpayment. Table D.22 shows low, very-low, and extremely low-income (ELI) households in Atascadero with housing problems, as well as those overpaying for housing. In total, 2,635 lower-income households (1,525 renter and 1,110 owner households) overpay for housing.  Extremely Low Income (up to 30 percent of AMI): Of the 11,250 households in the City, 1,385 households (12.3%) have household incomes less than 30 percent of median income. Owner households in this category experience the highest level of cost burden and housing problems compared with other lower income households.  Very Low Income (31-50 percent of AMI): Very low-income households are cost burdened, with substantial majorities of renters and owners spending greater than 30 percent of household ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 99 of 216 Atascadero Housing Element D: Needs Assessment| 19 income on housing costs. Renters in this category experience the highest level of cost burden and housing problems compared with other lower-income households.  Low Income (51-80 percent of AMI): The difference between the proportion of owner and renter low income households experiencing cost burden and housing problems is the largest compared with other lower-income categories. Table D.22: Housing Problems for All Lower Income Households Renters Owners Total Households (% of all HH) Housing Income <= 30 Percent MFI (Extremely Low Income) 805 580 1,385 (12.3%) % With any Housing Problems 68.9% 81.9% 74.4% % With Housing Cost Burden > 30% 68.3% 81.9% 74.0% % With Housing Cost Burden > 50% 55.3% 75.9% 63.9% Household Income >30% to <= 50% MFI (Very Low Income) 525 360 885 (7.9%) % With any housing problems 69.5% 56.9% 64.4% % With Housing cost burden > 30% 69.5% 52. 8% 62.7% Household income > 50 to <= 80% MFI (Low Income) 975 895 1,870 (16.6%) % With any housing problems 66.7% 49.7% 58.6% % With Housing cost burden > 30% 62.6% 49.7% 56.4% Source: U.S. Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS), 2012-2016 6. Housing at Risk of Converting from Affordable to Market Rate Housing Housing Element law requires jurisdictions to provide an analysis and program for preserving affordability of assisted housing developments for the next 10 years (2021-2031). Based on City records and information from the California Housing Partnership Corporation, in the next 10 years (2013-2023), no assisted housing developments in Atascadero are at risk of losing affordability. A portion of the City’s affordable housing stock was created via the City’s inclusionary housing policy. This policy was adopted in 2003 and stipulates a 30-year affordability term. As such, the affordability covenants do not expire within the next 10 years. Another subset of affordable units was developed by non-profit, affordable housing developers, who do not intend to convert their units to market-rate apartments. Based on information from the California Housing Partnership Corporation, in the next 10 years no assisted housing developments subject in Atascadero are at risk of losing affordability. One development in City records has an expiring affordability covenant in 2029 (Atascadero Gardens at 7480 Santa Ysabel) but is not considered at risk as it was purchased in 1999 by People’s Self Help Housing to preserve its ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 100 of 216 Atascadero Housing Element 20 | D: Needs Assessment affordability. People’s Self Help Housing is an affordable housing developer and service provider including site-based services for low-income families, individuals, farmworkers, veterans, the homeless, and those living with disabilities. Pursuant to Government Code Section 65863.11, the state maintains a list of “Entities Interested in Participating in California's First Right of Refusal Program” at https://www.hcd.ca.gov/policy- research/docs/HPD-00-01.xlsx. This list includes two entities interested in properties in San Luis Obispo County and several entities interested in properties located in any county. It is worthy to note that City staff has contributed time in past years to assisting owners of assisted housing to negotiate with lenders such as the U.S. Department of Agriculture to extend their subsidies. In the event that a development becomes at risk of conversion to market-rate housing, the City will maintain contact with local organizations and housing providers who may have an interest in acquiring at-risk units and will assist other organizations in applying for funding to acquire at-risk units. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 101 of 216 Atascadero Housing Element E: Constraints| 1 E. Constraints on Housing Production Government policies and regulations impact the price and availability of housing and in particular, the provision of affordable housing. Constraints include residential development standards, fees, and permitting procedures. Providing infrastructure and services also increases the cost of producing housing. This Chapter addresses potential governmental and nongovernmental constraints and focuses on mitigation options available to the City. 1. Governmental Constraints Although local governments have little influence on such market factors as interest rates and availability of funding for development, their policies and regulations can affect both the amount of residential development that occurs and the affordability of housing. Since governmental actions can constrain development and affordability of housing, State law requires the Housing Element to “address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing.” Land Use Controls The City’s primary policies and regulations that affect residential development and housing affordability include Title 9 (the City’s Planning and Zoning Regulations), Title 11 (the City’s Subdivision Regulations), the General Plan, the Atascadero Downtown Revitalization Plan, the Appearance Review Manual, development processing procedures and fees, on and off-site improvement requirements, and building codes. In addition to a review of these policies and regulations, an analysis of governmental constraints on housing production for persons with disabilities is included in this section. Planning and Zoning Regulations Title 9, the City’s Planning and Zoning Regulations, allows residential development in various residential and non-residential zones. Several of these zones only allow residential use in the form of a caretaker unit and that is indicated in the descriptions below. Residential density in Atascadero ranges from less than 1 units per acre up to 24 units per acre. Title 9 does not include specific development standards for the Rural Residential zone that is identified on the Zoning Map. Program 3.F is included in the Housing Element and specifies that as part of a comprehensive General Plan update, the Rural Residential zone will be codified into Title 9 and will include standards that distinguish it from the Residential Suburban zone.  Agriculture (A) Zone. This zone is established to protect, preserve, and encourage agriculture on suitable land. Agriculture related residential uses are permitted including single-family dwellings, primary family housing, and farm labor quarters. The A zone corresponds to the Agriculture (AG) land use designation of the General Plan.  Rural Residential (RR) Zone. This zone is established for large lot single-family residential uses. The General Plan details a maximum allowable density of 0.4 units per acre. The RR zone corresponds to the Rural Residential (RR), Rural Estate (RE), Suburban Estate (SE), and Agriculture (AG) land use designations of the General Plan.  Residential Suburban (RS) Zone. This zone is established for large lot single-family residential uses. Second units are permitted by right in the RS zone, subject to specific development ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 102 of 216 Atascadero Housing Element 2 | E: Constraints standards identified in Chapter 5 of Title 9. The maximum allowable density is 0.4 units per acre. The RS zone corresponds to the Rural Residential (RR), Rural Estate (RE), Suburban Estate (SE), and Agriculture (AG) land use designations of the General Plan.  Residential Single-Family (RSF) Zone. This zone is established to provide for single-family residential areas within the urban service line. Second units are permitted by right in the RSF zone, subject to specific development standards identified in Chapter 5 of Title 9. The RSF designation is divided into three categories based on minimum lot sizes, RSF-X, RSF-Y, RSF-Z and density ranges from 0.5 to 2.0 units per acre. Density may be increased to four units per acre with a Planned Development in the RSF-X zone. The RSF zone corresponds to the Single-Family Residential (SFR) land use designation of the General Plan, which includes the sub-land use designations SFR-Z, SFR- Y, and SFR-X.  Limited Single-Family (LSF) Zone. This zone is established for single-family residential where raising of farm animals is not allowed. Second units are permitted by right in the LSF zone, subject to specific development standards identified in Chapter 5 of Title 9. The LSF designation is divided into three categories based on the minimum lot size, LSF-X, LSF-Y, LSF-Z, and density ranges from 0.5 to 2.0 units per acre. The LSF zone corresponds to the Single-Family Residential (SFR) land use designation of the General Plan, which includes the sub-land use designations SFR-Z, SFR-Y, and SFR-X.  Residential Multiple Family (RMF) Zone. This zone is established for apartment, condominium, and townhouse development. The maximum allowable density for areas designated Low Density Multiple Family Residential (RMF-10) is 10 units per acre, for areas designated High Density Multiple Family Residential (RMF-24) is 24 units per acre, and for hillside areas the density ranges from 1 - 20 units per acre depending on average slope (density exceptions exist for group quarters and nursing facilities). The RMF zone corresponds to the Medium-Density Residential (MDR) and High-Density Residential (HDR) land use designations of the General Plan.  Downtown Commercial (DC) Zoning District. This zone is established to enhance the economic viability and pedestrian-oriented character of downtown. Residential uses are permitted on upper floors in the DC zoning district. Home occupations and live/work projects are also encouraged in the DC zoning district. The maximum allowable density is 20 units per acre. The DC zone corresponds to the Downtown (D) land use designation of the General Plan.  Downtown Office (DO) Zoning District. This zone is established for professional and other office uses close to the services provided in the DC zoning district. Residential uses are permitted on upper floors in the DO zoning district. The maximum allowable density is 20 units per acre. The DO zoning district corresponds to the Downtown (D) land use designation of the General Plan.  Commercial Neighborhood (CN) Zone. This zone is established to provide for small-scale retail shopping and personal service facilities at the neighborhood level. The Commercial Neighborhood Zone is situated and designed to serve the limited shopping and service needs of the immediately surrounding residential area. It allows mixed-use development with residential up to 24 units per acre with a conditional use permit. Caretaker residences are also permitted conditionally. The CN zone corresponds to the General Commercial (GC) and Mixed-Use (MU) land use designations of the General Plan. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 103 of 216 Atascadero Housing Element E: Constraints| 3  Commercial Professional (CP) Zone. This zone is established for limited retail shopping and personal service facilities. It allows mixed-use with residential up to 24 units per acre with a conditional use permit. Caretaker residences are also permitted conditionally. The CP zone corresponds to the General Commercial (GC) and Mixed-Use (MU) land use designations of the General Plan.  Commercial Retail (CR) Zone. This zone is established for a wide range of commercial uses to accommodate retail and service needs; however, it does conditionally permit residential care facilities for the elderly (RCFE), caretaker residences, mixed use with residential up to 24 units per acre, multi-family dwellings on the second floor or above or within an existing residential structure of historical significance, and single-room occupancy units. The CR zone corresponds to the General Commercial (GC) and Mixed-Use (MU) land use designations of the General Plan.  Commercial Service (CS) Zone. This zone is established for light manufacturing and large lot service commercial, however it does conditionally permit caretaker residences or multifamily dwellings within an existing structure of historical significance. The CS zone corresponds to the Service Commercial (SC) land use designation of the General Plan.  Commercial Tourism (CT) Zone. This zone is established for limited commercial uses for Highway 101 travelers; however, it does conditionally permit caretaker residences. The CT zone corresponds to the General Commercial (GC) land use designation of the General Plan.  Commercial Park (CPK) Zone. This zone is established for commercial park uses that require larger parcels and planned commercial developments; however, it does conditionally permit Residential Care for the Elderly Assisted Living. The CPK zone corresponds to the Commercial Park (CPK) land use designation.  Industrial Park (IP) Zone. This zone is established for light manufacturing and large lot service commercial; however, it does conditionally permit caretaker residences. The IP zone corresponds to the Industrial (IND) land use designation of the General Plan.  Industrial (I) Zone. This zone is established for heavy manufacturing and industrial uses; however, it does conditionally permit caretaker residences. The I zone corresponds to the Industrial (IND) land use designation of the General Plan.  Recreation (L) Zone. This zone provides suitable locations for recreational facilities; however, it does conditionally permit caretaker residences. The L zone corresponds to the RR, RE, SE, SFR, MDR, HDR, Public Recreation (REC), Public Facilities (PUB), and Open Space (OS) land use designation of the General Plan.  Special Recreation (LS) Zone. This zone provides suitable locations for recreational facilities on land in private ownership. This zone also provides for residential uses where intensive recreational activity may not be appropriate. The maximum allowable density for residential is 0.7 unit per acre (if sewer not available) or one unit per acre (if sewer service exists). The LS zone corresponds to the Commercial Recreational (CREC) land use designation of the General Plan.  Public (P) Zone. This zone provides suitable locations for public and quasi-public facilities; however, it does conditionally permit single-family, residential care, and caretaker residences. The maximum allowable density for residential is 0.4 unit per acre. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 104 of 216 Atascadero Housing Element 4 | E: Constraints  Planned Development (PD) Overlays. The City has established 34 overlays (PD 1 - 12 and 14 - 35) to allow for special use standards that differ from those established by the underlying zone. The maximum allowable density is 24 units per acre. Planned Development Overlays are typically used to allow for individual lot ownership units in multi-family zones and clustered residential development in rural areas to achieve minimal environmental impacts and reduced infrastructure costs.  Emergency Shelter (ES) Overlay. The City established an emergency shelter overlay zone in 2013 which allows emergency shelters by right on specific sites, subject to operational and development standards. In 2013, one ES site was designated at 6370 Atascadero Avenue for the El Camino Homeless Organization (ECHO) shelter. Table E.1 summarizes the General Plan land use designations and the zoning districts that either allow by right or conditionally permit residential development. In 2013, the City amended the Zoning Regulations to allow residential densities up to 24 units per acre in the RMF-24 Zone and up to 20 units per acre in the DC and DO zones. Table E.1: General Plan Land Use Designations and Zoning Districts General Plan Land Use Designation Density Corresponding Zoning Districts RR/RE/SE 0.1-0.4unit/acre gross1 RR, RS, P, L SFR-Z 1.0 unit/acre gross1 RSF-Z, LSF-Z, P, L SFR-Y 2.0 unit/acre gross RSF-Y, LSF-Y, P, L SFR-X 4.0 unit/acre net2 RSF-X, LSF-X, P, L MDR 10 unit/acre net RMF-10, P, L HDR 24 unit/acre net RMF-24 P, L GC 24 unit/acre net CN, CP, CR, CT SC (0.4 FAR) CS D 20 unit/acre net DC, DO MU 24 unit/acre net CN, CR, CP: (MU/PD overlay) CREC 10 unit/acre net LS, P CPK (0.4 FAR) CPK IND (0.4 FAR) I, IP AG 0.1-0.4 unit/acre gross1 RR, RS, A REC -- L, P PUB (0.4 FAR) L, P Notes: 1. Density is adjusted by performance standards in this land use designation. The maximum density may be lower based on the application of performance standards. 2. The maximum density sets a limit to the number of units that may be developed in each land use designation. The General Plan also sets minimum lots size areas that are allowed through the subdivision process consistent with the "Elbow Room" principle. The minimum lot sizes are more restrictive than the maximum densities to reflect historic small lot development densities and to allow for new planned development projects that incorporate smaller lot sizes with innovative design concepts. Table E.2 summarizes the housing types permitted by zone. Each use is designated by a letter denoting whether the use is allowed (A) or conditionally permitted (CUP). ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 105 of 216 Atascadero Housing Element E: Constraints| 5 Table E.2: Zoning District’s Permitted Land Uses Land Uses A RS RSF LSF RMF DC DO CN CP CR CS CT CPK IP I L LS P Single-family Dwelling7 -- A A A A A2 A2 -- -- -- -- -- -- -- -- -- A CUP Multi-Family Dwelling7 -- -- -- -- A2 A2 A2 CUP6 CUP6 CUP6 CUP6 -- -- -- -- -- -- -- Live/Work Unit -- -- -- -- -- A3 -- -- -- -- -- -- -- -- -- -- -- -- Accessory Dwelling Units -- A A A A -- -- -- -- -- -- -- -- -- -- -- -- -- Temporary dwelling -- A A A A -- -- -- -- -- -- -- -- -- -- -- A -- Mobile/Manufactured Home A A A A A -- -- -- -- -- -- -- -- -- -- -- -- -- Mobile home developments -- CUP CUP CUP CUP -- -- -- -- -- -- -- -- -- -- -- -- -- Single Room Occupancy -- -- -- -- -- -- -- -- -- CUP -- -- -- -- -- -- -- -- Transitional/Supportive Housing7 -- A A A A A2,3 A2 CUP6 CUP6 CUP6 CUP6 -- -- -- -- -- A CUP Agriculture Employee Housing A -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Caretaker (Employee) Unit -- -- -- -- -- -- -- -- CUP CUP CUP -- -- -- -- CUP -- -- Residential care, ≤ 6 clients -- A A A A A3 A3 -- -- -- -- -- -- -- -- -- -- CUP Residential care, > 6 clients -- CUP CUP CUP CUP -- -- -- -- -- -- -- -- -- -- -- -- CUP Residential Care for the Elderly Assisted Living, ≤ 6 clients, Assisted Living -- A A A A A3 A3 -- -- CUP -- -- -- -- -- -- -- -- Residential Care for the Elderly Assisted Living, > 6 clients, Assisted Living -- CUP CUP CUP CUP -- -- -- -- CUP -- -- -- -- -- -- -- -- RCFE – Independent Living Center/ Senior Apartments -- -- -- -- CUP -- -- CUP -- CUP CUP -- -- -- -- -- -- -- Organizational houses (Membership houses) -- CUP CUP CUP CUP -- -- -- -- -- -- -- -- -- -- -- -- -- Medical extended care5, ≤ 6 clients -- A A A CUP -- -- CUP CUP CUP CUP CUP CUP -- -- -- -- CUP Medical extended care5, > 6 clients -- CUP CUP CUP CUP -- -- -- -- CUP -- -- -- -- -- -- -- CUP Age restricted housing -- -- -- -- -- CUP -- -- -- -- -- -- -- -- -- -- -- -- Notes: A. This table is for reference only, refer to Zoning Regulations for the latest official zoning designations. Zoning Regulations may be amended independently of this table. A: Allowed Use, CUP: Conditional Use Permit, -- Not Permitted. 1. RSF-Y only, see Section 9.6106 2. RMF Zone – CUP required for projects over 12 units, excluding RMF-24 properties identified in Appendix I. RMF-24 properties identified in Appendix I are allowed by right, not subject to a CUP or specific plan. DC and DO Zones - Residential uses allowed only on second and third floor, except sites north of Olmeda Avenue. If project is required to provide a unit in compliance with Americans with Disabilities Act, the handicapped accessible unit may be located on a first floor. A first floor unit shall be located in a non-storefront location within a tenant space. 3. Permitted use if the residential quarters are located on the second or third floors, or within an existing residential structure of historical significance. If project is required to provide a unit in compliance with Americans with Disabilities Act, the handicapped accessible unit may be located on a first floor. A first floor unit shall be located in a non-storefront location within a tenant space. 4. Conditional Use Permit required if the residential quarters are located on the first floor unless a project is required to provide a unit in compliance with the Americans with Disabilities Act. 5. A skilled nursing facility (also referred to as medical extended care) is a board and care home for residents, where no medical care is provided, and is subject to all applicable standards for multi-family dwellings. 6. Multi-family dwellings permitted when located on the second floor or above, or within an existing residential structure of historical significance. 7. Transitional and supportive housing are considered single-family or multi-family uses under Title 9 and are permitted in all residential zones and held to the same development standards as other residential uses of the same type in the same zone. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 106 of 216 Atascadero Housing Element 6 | E: Constraints Table E.3 identifies development standards for the residential zones, TableE.4 shows the development standards in the commercial zones, and Table E.5 indicates the development standards in the Downtown Zones. Minimum parcel size and setback requirements in Atascadero are not unusually strict and are not considered a constraint to the development of affordable housing. The height limit in residential zones has proven not to impede development or discourage density. The Hidden Oaks Apartments and Southside Villas condominium projects, 90 and 86 units, respectively, achieved densities over 20 units per acre while meeting the 30-foot, two-story height restriction. The Emerald Ridge condominium development, approved in 2004, received a height exception as part of their conditional use permit and achieved a density of 27.7 units per acre with 208 units on 7.5 acres with approval of a density bonus for high quality architectural design. Program 3.D proposes to amend the Zoning Regulations to remove the number of stories limit in the RMF Zone. Table E.3: Residential Zones Development Standards Development Standard Zone RS RSF LSF RMF X Y Z X Y Z Min lot size (acres)1,2 2.5 - 10 0.5 1 1.5 -2.5 0.5 1 1.5 - 2.5 .53 Max Height (feet) 30 ft. max. 30 ft. (2 stories max.) Setbacks4 (feet): Front 25 ft. min - exceptions for shallow lots, flag lots, sloping lots, and variable block. 15 ft Side 5 ft. min - exceptions for corner lots, key lots, small corner lots, accessory buildings, common wall development5, zero lot line development6, access easements. Rear Principal residential building - 10 ft. min Accessory building - 3 ft. min if under 12 ft in height and under 120 sf Interior Principal residential buildings - 10 ft Accessory building - 10 ft (some code exceptions apply) Notes: A. For reference only, refer to Zoning Regulations for the latest official development standards. Zoning Regulations may be amended independently of this table. 1. Depending upon conformance with performance standards set in each zone. 2. Smaller lot sizes allowed with a Planned Development. 3. Smaller lot sizes allowed for PD projects, including mobile home developments, provided that the overall density within the project conforms with Section 9-3.17 (RMF Zone - Density). 4. Except for 2nd story dwellings over commercial and industrial uses. 5. Two dwelling units, and/or their accessory garages constructed on adjoining lots with minimum building code separation. 6. A group of dwelling units on adjoining lots may be established so that all units about 1 side property line. Table E.4: Commercial Zones (Allowing Residential Development) Development Standards Development Standard CN CP CR CS Min lot size (acres) 0.51 0.51 0.51 1.01 Density (units per acre) 24 24 24 Varies, multifamily dwellings allowed only within an existing structure of historical significance ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 107 of 216 Atascadero Housing Element E: Constraints| 7 Table E.4: Commercial Zones (Allowing Residential Development) Development Standards Development Standard CN CP CR CS Setbacks (feet) Front 02,3 02,3 02,3 02,3 Sides (each) 02 02 02 02 Rear 04 04 04 04 Height limit 35 ft 35 ft 35 ft 35 ft Notes: 1: Smaller lot sizes may be allowed for planned commercial and industrial developments where the Planning Commission determines that such smaller lot sizes will not be detrimental to the purpose and intent of the Zone. 2. Ground floor residential uses are subject to the residential setback requirements. 3. Where a commercial or industrial zone has a front setback, including a double frontage setback, on a street where more than 50% of the lots in the same block are zoned for residential use, the front setback shall be 25 feet, except that a one- story building or parking may encroach into one-half the required front setback depth. 4. Uses adjacent to an alley: a minimum of 5 feet, except where the alley provides vehicular access to the interior of the building, in which case the setback shall be 10 feet; or residential use zone: no rear setback is required for buildings or portions of buildings which do not exceed 12 feet in height within 10 feet of the rear property line. The rear setback shall be a minimum of 10 feet for buildings or portions of buildings which exceed 12 feet in height. Table E.5: Downtown Zones Development Standards 1 DC DO Min lot size No minimum Density 20 du/acre 20 du/acre Setbacks Minimum and maximum setbacks required. See Section 9-4.103 for setback requirement, allowed projections into setbacks, and exceptions to setbacks. Front None allowed, except for building insets designed to accommodate outdoor eating and seating areas, and except for East and West Mall between El Camino Real and Palma Avenue, where a minimum of 20 feet is required. As required by Section 9-4.106 when adjacent to a residential zone, none required otherwise. Sides (each) None required Rear None required Creek 20 ft. Height limit 45 ft. not to exceed 3 stories; 18 ft. on the west side of El Camino Real2 25 ft Off-street parking None required, except as required by Section 9-4.114 for hotels, motels, residential uses, offices, government offices and facilities, and health care services, and for all development east of Atascadero Creek. As required by Sections 9-4.114 et seq. Notes: 1. For reference only, refer to Zoning Regulations for the latest official development standards. Zoning Regulations may be amended independently of this table. 2. Between Atascadero Creek and lot line common to Lots 19 and 20, Block H-B, Atascadero Colony Map. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 108 of 216 Atascadero Housing Element 8 | E: Constraints Historic Preservation To promote the conservation, preservation, protection, and enhancement of Atascadero’s historical and architecturally significant structures, the City adopted a Historic Site Overlay (HS) zone. The standards are intended to protect historic structures and sites by requiring new uses and alterations to existing uses to be designed with consideration for preserving and protecting the historic resource. Given the quality of Atascadero’s historical and architecturally significant structures—and the contribution of these structures to the image and quality of life in Atascadero—the historic preservation policies and regulations are reasonable and appropriate and do not pose an unreasonable constraint to residential development in the City of Atascadero. No sites identified in the vacant land inventory are subject to the HS overlay. Sensitive Resources The City adopted a Sensitive Resource Overlay (SR) zone to protect areas with special environmental resources and areas containing unique or endangered vegetation or habitat. The purpose of these standards is to require that proposed uses be designed with consideration of the identified sensitive resources, and the need for their protection. Development on properties within an SR overlay zone require additional measures to ensure environmental protection, which can add to the cost of development. It is in the best interest of the community, and also is mandated by state and federal laws to protect sensitive environmental resources. The City’s regulations do not pose an unreasonable constraint to residential development in the City. No sites identified in the vacant land inventory are subject to the SR overlay. Multi-Family Housing Multi-family development is allowed by-right in the RMF zone and in the two Downtown zones. Multi- family development is also conditionally allowed in several commercial zones. The Zoning Regulations requires a CUP for residential projects in the RMF zone over 11 units, excluding RMF-24 properties identified in the Housing Element Sites Inventory. RMF-24 properties identified in the Housing Element Sites Inventory are allowed by right, not subject to a CUP or specific plan. Program 3.C has been included in this Housing Element to provide for staff to review the CUP requirement for multi-family housing projects and consider removing the CUP requirement once objective design standards have been adopted. Mobile and Manufactured Homes State law requires that mobile and manufactured homes be allowed in residential zones. These units cannot be regulated by any planning fees or review processes not applicable to conventional single-family dwellings. However, the architectural design of manufactured or mobile homes can be regulated by the City. Under the City’s Zoning Regulations, mobile home developments (mobile home parks) are permitted with approval of a CUP in all residential zones. Individual mobile home dwellings are permitted by right in all residential zones and in the Agriculture zone. The City’s Zoning Regulations address manufactured homes in Section 9-6.142. Seventeen modular homes have been installed as permanent residences since the 2014 Housing Element update. The City updated definitions for consistency with state law and to clarify that the terms “mobile home” and “manufactured home” are essentially the same and should be considered a single-family dwelling and permitted in all zones that allow single-family housing. Manufactured housing can be subject to design review. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 109 of 216 Atascadero Housing Element E: Constraints| 9 Mixed-Use Development Atascadero encourages mixed-use development in the downtown districts (DC and DO) and in several commercial districts. The Downtown zoning districts are intended to develop an attractive, pedestrian- oriented, and economically successful downtown area by providing for a mixture of commercial, service, and residential land uses. The development of mixed-use projects provides more housing opportunities by permitting residential uses on the upper floors. Mixed-use development also enhances economic viability, pedestrian-oriented character, and the overall downtown environment. In 2013, the City amended the Zoning Regulations to allow vertical mixed-use with a CUP in General Commercial land use designations. Horizontal mixed-use requires a PD overlay. This represents an easing from previous requirements for horizontal or vertical mixed-use. No CUP is required for mixed-use in the Downtown zones. As part of implementation of Program 2.F, the City will amend the Zoning Regulations to adopt mixed-use development standards that facilitate quality development and that strike a balance between the community’s need for housing and the City’s need to preserve viable commercial land uses. Accessory Dwelling Units Accessory dwelling units can be an important source of affordable housing since they are smaller than primary units and do not have direct land acquisition costs. Supporting the development of accessory dwelling units expands housing opportunities for very low-, low-, and moderate-income households by increasing the number of rental units available within existing neighborhoods. Accessory dwelling units are referred to in the Atascadero Zoning Regulations as “secondary residential units,” which are residential occupancy constructions (R) with a kitchen and full bathroom that is accessory to the primary unit and intended for permanent occupancy by a second household. Second residential units provide quarters for independent living areas, sleeping, cooking, and sanitation facilities. Second residential units are permitted by right in the single-family residential zones (RS, RSF, LSF). Second units are also allowed in single-family planned development overlay districts only when consistent with an approved Master Plan of Development. The City last updated its ADU ordinance in 2010. The State Legislature has passed numerous changes to the ADU requirements (previously known as second units) to promote the development of ADUs. These include allowing ADUs to be built concurrently with a single-family home, opening areas where ADUs can be built to include all zoning districts that allow single-family uses, modifying fees from utilities such as special districts and water corporations, and reducing parking requirements. In Atascadero, accessory dwelling units are permitted as an accessory use to single-unit dwellings, consistent with the Government Code Section 65852.2, and are subject to all development standards of the underlying zoning district and/or planned development overlay districts, with a few minor exceptions:  Floor Area. The total floor area shall not exceed 1,200 square feet.  Private Open Space Requirement. A second unit shall have a minimum private open space area of 250 square feet. No portion of an open space area shall have a dimension of less than 10 feet in width.  Attached Second Units. If the second unit is attached to the primary dwelling, each shall be served by separate outside entrances.  Second units are permitted on lots one net acre or greater in size if on a private septic system. On lots less than 1-acre net, dwelling units must be connected to City sewer. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 110 of 216 Atascadero Housing Element 10 | E: Constraints AB 2299 provides that any existing ADU ordinance that does not meet the new requirements is null and void as of January 1, 2017. In such cases, a jurisdiction must approve accessory dwelling units based on Government Code Section 65852.2 until the jurisdiction adopts a compliant ordinance. Jurisdictions are not required to create ordinances for ADUs; however, any jurisdiction that does adopt an ADU ordinance, must submit the ordinance to HCD within 60 days. Program 1.D in the Housing Plan commits the City to adopting an updated ADU ordinance to comply with Government Code Section 65852.2. Through adoption of Resolution 2020-066, Atascadero complies with Senate Bill 13 (SB 13) by exempting and/or reducing development impact fees to spur the development of ADUs as a form of affordable housing. ADUs less than 750 square feet in size are exempt from development impact fees. ADUs between 750 square feet and 1200 square feet in size are charged proportional impact fees based on the City’s adopted fee structure for primary residential units (derived from the median residence size [1,666 square feet] divided by the existing impact fee). Residential Care Facilities Under California law, licensed facilities serving six persons or fewer receive special land use protections. California requires that many types of licensed facilities serving six persons or fewer be treated for zoning purposes like single-family homes. Except in extraordinary cases in which even a single-family home requires a conditional use permit, these laws bar conditional use permits for facilities that serve six or fewer persons. No local agency can impose stricter zoning or building and safety standards or require variances on these homes than those required for homes in the same zone. Residential care facilities in Atascadero serving six or fewer residents (small) are permitted by right in all residential zones. In the DC and DO zones, residential care facilities for six or fewer persons are treated as single-family homes. Residential care facilities serving more than six residents (large) are conditionally permitted in the single- family zones and RMF zone. Residential care facilities for the elderly serving more than six residents are conditionally permitted in all residential zones and the Commercial Retail (CR) zone. Residential Care Facilities for Elderly in independent living settings are conditionally allowed in the RMF, CN, CR, and CS zones. See the section below, Housing for People with Disabilities, for additional discussion on housing for special needs. Emergency Shelters and Transitional and Supportive Housing State legislation SB 2 requires jurisdictions to permit emergency shelters without a CUP or other discretionary permits, and transitional housing and supportive housing must be considered residential uses and must only be subject to the same restrictions that apply to the same housing types in the same zone. The City has an Emergency Shelter (ES) Overlay Zone, which allows emergency shelters on a specific site subject to the development and operational standards outlined in the Zoning Regulations. The ES Overlay Zone was applied to the property where El Camino Homeless Organization (ECHO) runs and operates a homeless shelter with a capacity of 60 beds (this capacity reflects an increase in beds implemented in 2019). The shelter building is 8,418 square feet and has 60 beds. The site is 1.26 acres with an existing building coverage of approximately 6,900 square feet, representing less than 13 percent of the total site area. Parking requirements are one vehicle parking space per five beds, one bicycle space per 10 beds, and one vehicle space per employee; standards are based on facility needs and operation as determined by the operator, ECHO and may be reduced accordingly. The only additional applicable code required development standard is a minimum 10 percent landscape coverage, which is usually achieved in the setback areas and within outdoor use areas for residents. Based on estimates, there is ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 111 of 216 Atascadero Housing Element E: Constraints| 11 approximately 0.66 acres of area that could be devoted to shelter expansion while maintaining on-site parking and outdoor recreation areas. Structures within this zone can be up to three stories in height. ECHO Shelter on Atascadero Avenue The ECHO shelter does not typically operate at capacity and is the only permanent and year-round overnight shelter in North County. As a shelter was not a permitted use in the base zone, the ES Overlay protects the operation and establishes operational guidelines. The site of the ECHO shelter has the capacity to expand to accommodate a total capacity of 110 beds at the single ES overlay site. Program 3.G is included in the Housing Plan to Review the Emergency Shelter (ES) Overlay Zone for continued compliance with state law and to evaluate the need to expanding the ES Overlay Zone to other appropriate properties, subject to the locational and operational criteria outlined in the Zoning Regulations. Recent State Law (AB 101) requires that Low-Barrier Navigation Centers be allowed as a by right use in areas zoned for mixed-use and nonresidential zones permitting (by right or conditionally) multi-family uses. Transitional Food and Shelter operates the Atascadero Warming Center (AWC) from November 1st through April 15th when the temperature is forecast to be 40 degrees or less and/or there is a 50% chance or greater of rain. The low barrier, behaviorally based center provides meals, clothing and other services through a volunteer effort. Program 3.H is proposed to ensure that the City meets the requirements of AB 101. Transitional and supportive housing are considered single-family or multi-family uses under Title 9. Transitional and supportive housing are permitted in all residential zones and thus held to the same development standards as other residential uses of the same type in the same zone. In 2016, the City amended the Zoning Regulations to include supportive and transitional housing as a use under the single- family and multi-family dwelling definitions. Effective January 1, 2019, AB 2162 (Supportive Housing Streamlining Act) requires supportive housing to be considered a use by right in zones where multi-family and mixed-uses are permitted, including nonresidential zones permitting multi-family uses, if the proposed housing development meets specified criteria. The law prohibits the local government from imposing any minimum parking requirement for units occupied by supportive housing residents if the development is located within one-half mile of a public transit stop. AB 2162 also require local entities to streamline the approval of housing projects ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 112 of 216 Atascadero Housing Element 12 | E: Constraints containing a minimum amount of supportive housing by providing a ministerial approval process, removing the requirement for CEQA analysis, and removing the requirement for a CUP or other similar discretionary entitlements. Program 3.H is included to ensure the City meets the requirements of AB 2162. Housing for Agricultural Employees The Employee Housing Act (Government Code Section 17021.5 and 17021.6) requires that any employee housing occupied by six or fewer employees shall be considered a single-family structure within a residential land use and must be treated the same as a single-family dwelling of the same type in the same zone. In addition, employee housing consisting of no more than 36 beds in a group quarters, or 12 units or separate rooms or spaces designed for use by a single-family or household, must be considered an agricultural land use and be treated the same as any other agricultural activity in the same zone. The Zoning Regulations identify one agricultural zone which permits agricultural operations and agriculture employee housing by right. Single-Room Occupancy Units (SROs) Single-room occupancy hotels and/or boarding homes are collectively referred to as SROs. SRO units are one-room units intended for occupancy by a single individual. It is distinct from a studio or efficiency unit, in that a studio is a one-room unit that must contain a kitchen and bathroom. Although SRO units are not required to have a kitchen or bathroom, many SROs have one or the other. Buildings that provide SRO dwellings are permitted conditionally in the Commercial Retail (CR) zone. Program 2.I is included in the Housing Element and calls for a review and, if necessary, a revision of siting regulations for SROs. As part of the program implementation, the City will consider amending the Zoning Regulations to allow single- room occupancy units as a by-right use. Building Codes and Enforcement Building codes and site improvements can also increase the cost of developing housing, particularly affordable rental housing. The following examines the City’s building codes and site improvement standards. Atascadero implements the 2019 edition of the California Building Code and other model construction codes, with amendments adopted by the California Building Standards Commission. These model codes establish standards and require inspections at various stages of construction to ensure code compliance and minimum health and safety standards. Although these standards and the time required for inspections increase housing production costs and may impact the viability of rehabilitation of older properties, the codes are mandated for all jurisdictions in California. The City has not adopted local amendments to the model codes that increase housing costs (the Plumbing Code has been amended to address large-lot development with septic systems). Building inspectors are responsible for ensuring that proposed projects meet State and local codes. The City uses Code Enforcement staff to promote property maintenance in accordance with the City Zoning and Building ordinances and State and County Health Codes. The Code Enforcement official receives and investigates complaints regarding alleged violations of the Municipal Code such as property maintenance violations, private property parking violations, or zoning violations. Complaints can be submitted by email, fax, mail, or delivered personally at two locked box locations in the City. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 113 of 216 Atascadero Housing Element E: Constraints| 13 Site Improvements The City of Atascadero, along with other agencies, requires the installation of certain on- and off-site improvements to ensure the safety and livability of residential neighborhoods. On-site improvements typically include private or shared driveways, parking areas, drainage, sections of underground pipe, swales, ponding areas, and amenities such as landscaping, fencing, open space, and park facilities. Off-site improvements typically include:  Sections of roadway, medians, bridges, sidewalks, and bicycle lanes (Minimum street width for multi-family neighborhoods is 36-feet from curb to curb, to provide adequate space for on-street parking and circulation [does not include sidewalks]. For single family neighborhoods, minimum street width is 20-feet paved with two-foot shoulders.)  Sewage collection and treatment  Water systems, including lines, storage tanks, and treatment plants (Atascadero Municipal Water Company)  Public facilities for fire, school, and recreation The costs of on- and off-site improvements are usually passed along to the homebuyer as part of the final cost of the home. The on- and off-site improvement standards imposed by the City are typical for most communities and do not pose unusual constraints for housing development. Parking Standards The City’s parking requirements are based upon unit type and size. As shown in Table E.6, parking requirements are typically two spaces per single-family residential unit. Multi-family residential units generally average 2.25 spaces per unit after accounting for guest parking. The City has several exceptions for parking. Bicycle parking may substitute parking spaces in lots with 20 or more spaces. A bicycle rack providing for at least five bicycles at a ratio of one bicycle rack for each 20 spaces is allowed. For compact car spaces, lots with 20 or more spaces may substitute compact car spaces for up to 20 percent of the total number of spaces. For motorcycle parking, lots with 20 or more spaces may replace regular spaces with motorcycle spaces at a ratio of one motorcycle space for each 20 spaces. In certain situations, parking requirements may be reduced or waived. This includes some alternative parking arrangement options:  Tandem Parking. Tandem parking permitted for single-family dwellings and individual mobilehomes upon meeting appropriate performance criteria.  Parking Districts. Parking requirements may be modified within a parking district where adequate parking is provided within the limits of the district and the parking requirements of a new use are accommodated by the parking district.  Shared Peak-Hour Parking. Where two or more uses have distinct and differing peak traffic usage periods, the required number of parking spaces may be reduced through Conditional Use Permit approval. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 114 of 216 Atascadero Housing Element 14 | E: Constraints  On-Street Parking Adjustment. In the case that a new driveway eliminates on-street parking spaces, the requirement for off-street spaces may be adjusted.  Planning Commission Modification. The required parking standards may be modified through Conditional Use Permit approval by the Planning Commission. Table E.6: Parking Requirements 1 Land Use Parking requirement Single-family dwellings (including mobile homes) 2 spaces per du, except 1/du on lots < 4,000 square feet in area Multi-family dwellings (including condominiums and attached ownership dwellings) 1 bedroom unit: 1.5 spaces 2 bedroom unit: 2 spaces, each add. bedroom: 0.5 space Guest parking: 1 space per 5 units, or fraction thereof Mixed-use Where a site contains more than one principal land use (such as a shopping center), the amount of parking required shall be the total of that required for each individual use2. Skilled nursing facility 1 space per 4 beds Group quarters 1 space per bedroom, plus 1 per eight beds Single-room occupancy 1 space per 4 units and 1 space per employee, plus 0.5 space per 2 units Accessory dwelling units (residential second units) 1 covered space for the first bedroom and an additional space for additional bedrooms (Not currently enforced; the City complies with State law requirements for ADUs. The City of Atascadero ADU Ordinance will be updated to reflect state law within 2 years of Housing Element adoption [see Program 1.D]) Notes: 1. For reference only, refer to Zoning Regulations for the latest official development standards. Zoning Regulations may be amended independently of this table. 2. In addition to the reduction of required parking, where two (2) or more uses have distinct and differing peak traffic usage periods (for example, a theater and a bank), the required number of parking spaces may be reduced through conditional use permit approval, provided that the parking lots of each use are located within three hundred (300) feet of each other (as measured along the most direct pedestrian path). The amount of reduction may be up to seventy-five percent (75%) of the amount of spaces required for the most intensive of the two (2) or more uses sharing the parking. Development Fees The City charges various fees and assessments to cover the costs of processing permits and providing services. Impacts fees are also charged to cover the cost or providing municipal services or mitigating project impacts. These fees are summarized in Table E.7. The total amount of fees varies from project to project based on type, existing infrastructure, and the cost of mitigating environmental impacts. Atascadero does not control school and water impact fees. These services are managed by separate districts. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 115 of 216 Atascadero Housing Element E: Constraints| 15 Table E.7: Planning and Development Fees1 Fee Category Fee Amount Planning Fees - Effective July 29, 2019 Administrative AUP Review $752 per application Minor CUP Review $1,233 per application Major CUP Review $4,424 per application Variance Application $1,952 per application Development Agreement $13,557 deposit, plus additional fees (staff charges, etc.) Specific Plan $10,183 deposit, plus additional fees (staff charges, etc.) General Plan Amendment $7,801 per application PD Zone Change $7,705 per application Rezoning (Map or Text) $4,282 per application ($8,186 rezoning with GP amendment) Tentative Parcel Map $4,616 per application Tentative Tract Map $6,353 per map, plus $45 per lot over 15 lots Condominium Conversion Tentative Map $3,355 + $72 per unit over 15 units ($5,566 + $72 per unit over 15 units with a Major CUP Precise Plan $2,314 per application Annexation $16,971 deposit, plus additional fees (staff charges, etc.) Lot Line Adjustment Review $1,465 per application historic lot line $2,455 for others Lot Merger $1,488 per application Temporary Occupancy Review $628 per application (Commercial)/ $453 per application (Residential) Administrative Time Extension Review $447 per application Planning Commission Time Extension Review $820 per application Appeal to Planning Commission (not full cost recovery) $786 per application Appeal to City Council (not full cost recovery) $1,058 per application Planning Review/Approval of Building Permit Minor $102 per application Major $356 per application CUP/PD Compliance $470 DRC Review $402 Affordable Housing Unit Fee Process $402 per application plus $136/unit and any plus legal costs Environmental Review Environmental Impact Report Review 10% of contract consultant amount of City staff review Environmental Negative Declaration $1,646 per application in addition to other application fees, where applicable ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 116 of 216 Atascadero Housing Element 16 | E: Constraints Table E.7: Planning and Development Fees1 Fee Category Fee Amount Capital Facilities Fees - Adopted June 30, 2007 SFR MFR Law Enforcement Facilities $574 $334 Fire Protection Facilities $950 - $955 $516 - $550 Fire Aerial Response Vehicle -- $242 Circulation System $5,597 $2,822 - $5,597 Storm Drainage Facilities $777 - $2,000 $314 - $499 General Government Facilities $1,036 $1,036 Library Expansion Facilities $532 $323 - $418 Public Meeting Facilities $1,084 $660 - $852 Parkland $4,775 $2,906 - $3,754 Open Space Acquisition $1,660 $1,011 - $1,305 Sewer $573 plus admin fee of $5 plus $1210 extension fee 1. For reference only. Planning and development fees display current rates at the time of publication. Fees are subject to change at the discretion of the City Council. Zoning Regulations may be amended independently of this table. Please check with the City of Atascadero Community Development Department for a current fee schedule. Source: City of Atascadero, 2020 Table E.8 shows typical fees charged on new housing projects. Fees collected by the City in the review and development process are limited to the City's costs for providing these services. The majority of fees for development projects are imposed by agencies outside the City’s control (i.e., school district impact fees and water connection fees). Table E.8: Development Fees for New Housing, 20201 Development Fee Category Single-Family Unit Multi-Family Unit Building and Planning Fees $4500 (small on septic) - $13,500/$14,000 (2,300 sq. ft. on sewer) $4,000-$6,000 School District - Atascadero Unified School District $7,5802 $4,9273 Water Connection4 - Atascadero Mutual Water Company $19,600 $4,900 / $9,800 (with/without dedicated landscape meter) Impact Fees5 $16,900-$18,2005 $11,700-$14,550 Miscellaneous Approximately $5,000 (for CEQA for homes with slopes > 20% - includes State fees) $2,000 Total $49,600 -$64,400 $27,500–$37,300 Notes: 1. For reference only, refer to City’s website for latest fee schedule. City fee schedule may be amended independently of this table. 2. Assumes a 2,000 square foot single-family dwelling with the impact fee at $3.79 per square foot. 3. Assumes a 1,300 square foot multi-family unit with the impact fee at $3.79 per square foot. 4. Source: City of Atascadero, 2020; Atascadero Mutual Water Company, 2020. 5. Based on lot size. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 117 of 216 Atascadero Housing Element E: Constraints| 17 Development fees make up approximately 10 to 14 percent of a home purchase price (Table E.9). The City of Atascadero fees are typical for most communities and are comparable to those of surrounding communities. Table E.9: Proportion of Fee in Overall Development Cost, 2020 Development Cost for a Typical Unit Single-Family Multi-Family Total estimated fees $49,600 - $64,400/unit $35,768 - $40,618/unit Estimated sale price/value1 $452,100 $370,000 Estimated proportion of fee cost to overall development cost/unit 11-14% 10-11% 1. Median Home Sales Price in January 2020 (CoreLogic) and estimated home value for multi-family properties (condos, co- ops) on Zillow.com on April 27, 2020. State law requires that cities include an analysis of any locally adopted ordinance that directly impacts the cost and supply of residential development. In 2003, the City Council approved an Inclusionary Housing Policy for all developments requiring a legislative approval, i.e. Zone Change or General Plan Amendment. The policy requires an in-lieu fee of five percent of the construction valuation of the market rate units within a project that does not provide 20 percent of the units as affordable. All inclusionary units are required to be deed restricted for a period of 30 years. All residential projects under legislative approval are subject to the inclusionary requirement as follows:  Projects of 1-10 units: pay in-lieu fee or build units  Projects of 11 or more units must build units or receive a Council approval to pay in-lieu fees The Inclusionary Housing Policy requires that all affordable units in single-family land use areas be designated for moderate-income households. The distribution of affordable units in multi-family and mixed-use commercial land use areas are 20 percent very low income, 37 percent low income, and 43 percent moderate income. Affordable units must be constructed at the same time as the market-rate units and affordable units must be physically distributed throughout the project site, rather than concentrated in one area. To ensure compliance with these requirements, a construction timeline detailing the development of affordable units and a site map must be approved by the City Council. With City Council approval alternatives to on-site construction or payment of in-lieu fees for inclusionary units may be allowed, including off-site construction, land dedication, combinations of construction, fees, and/or land dedications. As an incentive to provide affordable units, all inclusionary units are treated as density bonus units that are not counted as part of the maximum density entitlement of a site. As an increasing number of inclusionary units move toward construction, the development community has raised concerns regarding the financing and resale of these units. To mitigate some of these financing issues, the City Council approved an equity-sharing program for the moderate-income homes. The equity- sharing program calls for the home to eventually be re-sold at the fair market value, with the City receiving its share of the sales proceeds to re-invest in affordable housing. In order to support additional development of affordable units at the very low- and low-income categories, Program 2.B is included in the Housing Element to direct the City to evaluate the inclusionary housing policy and consider replacement of the current inclusionary policy with an inclusionary housing ordinance that that requires residential developments (including non-legislative actions) to provide deed-restricted, affordable units or an in-lieu fee. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 118 of 216 Atascadero Housing Element 18 | E: Constraints Permit Processing Housing production may be constrained by development review procedures, fees, and standards. Residential projects proposed in Atascadero may be subject to design, environmental review, zoning, subdivision and planned unit development review, use permit control, and building permit approval. Table E.10 displays the review authority required for various planning decisions and permits. Table E.11 displays the typical timelines for approvals and permits for the City of Atascadero. Minor residential projects typically take from one to three months from submittal of the application through completion of the approval process. Larger residential projects can take six to twelve months. Permit processing is a time consuming and costly process, especially for integrated projects such as those involving elements of affordable housing and mixed-use. City staff adhere to strict review times consistent with state law for entitlement review. Initial review times are approximately 30 days for most projects. Processing timeframes have been generally predicated on how quickly the applicant can process corrections or changes to the proposed project. Program 3.A in the Housing Element directs the City continue reviewing and revising procedures to streamline the permitting processes. Table E.10: Permit Processing Procedures Type of Decision Role of Review Authority Director or City Staff Design Review Committee Planning Commission City Council Zoning Review (Administrative) Decision N/A1 Appeal Appeal Administrative Use Permit Decision2 Recommend 2 Appeal Appeal Variance Recommend N/A Decision Appeal Zoning Map Amendment Recommend N/A Recommend Decision Design Review Approval Recommend Decision Appeal Appeal Planned Development (Master Plan of Development required) Recommend Recommend Recommend Decision Condition Use Permit Recommend Recommend3 Decision Appeal Subdivision Maps Recommend Recommend4 Decision Appeal Notes: For reference only, refer to Zoning Regulations for the latest official review procedures. Zoning Regulations may be amended independently of this table. 1. May be required for commercial signage or other administrative permits that have design impacts. 2. Design Review may be considered by the “hearing officer” for AUP applications for non-residential uses. 3. Only if architectural review required. 4. Only if paired with a master plan of development. Table E.11: Timelines for Permit Procedures Type of Approval, Permit, or Review Typical Processing Time These time periods begin when a complete application is submitted and are extended when additional information is requested by the City. The timeframes below are target issuance date—when the applicant can expect a decision on their application. Zoning Review (Administrative) Concurrent with building permit Administrative Use Permit 1-3 months Variance 1-3 months ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 119 of 216 Atascadero Housing Element E: Constraints| 19 Table E.11: Timelines for Permit Procedures Type of Approval, Permit, or Review Typical Processing Time Design Review Approval 1-3 months Planned Development Review 6-12 months Condition Use Permit, minor 1-3 months Condition Use Permit, major 3-6 months Zoning Amendment 3-6 months General Plan Amendment 6-12 months Subdivision Maps 3-6 months Ministerial Review Planning review of ministerial projects, such as building permits, are reviewed concurrently with building, fire, and public works. The City offers pre-project meetings to discuss zoning compliance and building code requirements to ensure that the process is streamlined. Planning review of routine over the counter permits is limited to tree protection when trees exist on-site and are within the area of development. Design Review The Atascadero Appearance Review Manual was adopted by the City Council in 1987. The Manual includes direction regarding the relationship of buildings to the site, relationship of buildings and the site to the adjoining area, landscaping, building design, maintenance, and parking. The purpose of Appearance Review is to ensure that the architectural and general appearance of buildings and grounds are in keeping with the character of the neighborhood. The City developed the Downtown Design Guidelines in 2000. The design guidelines were intended to assist in the revitalization of the Atascadero downtown, provide for infill development, and promote the conservation and reuse of existing buildings. The Guidelines provide a basis for review of building orientation, design, architecture, landscaping, and signs for new projects in the downtown. The guidelines were updated in 2011. The Design Review Committee (DRC) was established by the City Council in August 2010. Municipal Code Section 9-2.107 identifies the purpose, authority, and approval criteria for the DRC. The DRC consists of members of City Council and Planning Commission and one member of the public; the DRC has the authority to approve and make recommendation regarding the architectural appearance, signage, site design and landscape design. Appearance approval is based on adherence to policies of the General Plan, compatibility with surrounding uses, and consistency with the guidelines and recommendations in the Appearance Review Manual and Downtown Design Guidelines. All multi-family residential projects, single- family residential projects requiring a Planned Development permit, or any development projects requiring a precise plan, conditional use permit, zone change, or general plan amendment must go through design review prior to Planning Commission or City Council. The DRC has been helpful in project streamlining by working out issues that normally would have been dealt with by the Planning Commission or simply at a staff level. The Design Review process does not appear to have a significant effect on housing affordability. Staff will continue to provide educational ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 120 of 216 Atascadero Housing Element 20 | E: Constraints materials and training for the DRC regarding the function and scope to ensure it is not inadvertently used to reduce housing units. Environmental Review Process/Precise Plan A precise plan is required for development with grading on slopes of over 20 percent. State regulations require environmental review of discretionary project proposals (e.g., subdivision maps, precise plans, use permits, etc.). The timeframes associated with environmental review are regulated by CEQA. In compliance with the Permit Streamlining Act, City staff ensures that non-legislative proposals are heard at the Planning Commission within 60 days of receipt of an application being deemed complete. Precise Plan applications are reviewed and approved by staff concurrently with the building permit review. SB 35 Approval Process SB 35 requires cities and counties to streamline review and approval of eligible affordable housing projects by providing a ministerial approval process, exempting such projects from environmental review under the California Environmental Quality Act (CEQA). When the state determines that jurisdictions have insufficient progress toward their lower-income RHNA (very low and low income), these jurisdictions are subject to the streamlined ministerial approval process (SB 35 [Chapter 366, Statutes of 2017] streamlining) for proposed developments with at least 50 percent affordability. If the jurisdiction also has insufficient progress toward their above-moderate-income RHNA, then they are subject to the more inclusive streamlining for developments with at least 10 percent affordability. As of March 2020, the City of Atascadero was determined to be subject only to SB 35 streamlining for proposed developments with 50% or greater affordability. The City has not received any applications or inquires for SB 35 streamlining. To accommodate any future SB 35 applications or inquiries, Program 3.A calls for the City to create and make available to interested parties an informational packet that explains the SB 35 streamlining provisions in Atascadero and provides SB 35 eligibility information. Program 3.B is included and specifies that City will adopt objective design standards to provide local guidance on design and standards for by-right projects as allowed by state law. Housing For People With Disabilities California law requires jurisdictions to analyze potential and actual constraints on housing for persons with disabilities, demonstrate efforts to remove impediments, and include programs to accommodate housing designed for disabled persons. Review of the Municipal Code, permitting procedures, development standards, and building codes revealed the following findings:  The City enforces Title 24 of the California Code of Regulations that addresses access and adaptability of buildings to accommodate persons with disabilities. The City also requires compliance with the 1988 amendments to the Fair Housing Act, which requires a minimum percentage of dwelling units in new RMF housing projects to be fully accessible to the physically disabled. No additional accessibility standards above State and Federal law are required.  In downtown zones, where residential uses are limited to the upper floors, a handicapped accessible unit may be located on a first floor if a project is required to provide a unit in compliance with the Americans with Disabilities Act, subject to development standards. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 121 of 216 Atascadero Housing Element E: Constraints| 21 Process for Reasonable Accommodation Accessibility improvements to existing structures, such as a ramp, are usually handled ministerially by City staff. The City adopted a reasonable accommodation ordinance in 2013. Table E.12 reviews zoning and land use policies, permitting practices, and building codes to ensure compliance with state and federal fair housing laws for persons with disabilities. The City of Atascadero has an ADA Coordinator to ensure City departments comply with this policy by carrying out the following functions:  Providing technical assistance to support City departments in complying with federal, state, and local disability access laws  Assisting departments in evaluating their facilities, programs, services, and activities to ensure provision of reasonable accommodations to people with disabilities  Conducting training for City employees in disability awareness, disability etiquette, disability access laws, and reasonable accommodations  Facilitating the resolution of grievances filed against the City that alleges noncompliance with disability access laws Table E.12: Constraints on Housing for Persons with Disabilities General Does the City have a process for persons with disabilities to make requests for reasonable accommodation? Yes. The City adopted a reasonable accommodation ordinance in 2013. Has the City made efforts to remove constraints on housing for persons with disabilities? There are no special permits or requirements for homes or development for disabled persons in zones where the use would be otherwise permitted. In most cases, these developments are permitted use. Does the City assist in meeting identified needs? The City applies Community Development Block Grant (CDBG) funds to accessibility upgrades. The San Luis Obispo Housing Authority recently completed a 19-unit retirement hotel, which contained ADA compliant units. Zoning and Land Use Has the City reviewed all its zoning laws, policies, and practices for compliance with fair housing law? Yes, the City has reviewed the land use regulations and practices to ensure compliance with fair housing laws. Are residential parking standards for persons with disabilities different from other parking standards? Does the City have a policy or program for the reduction of parking requirements for special needs housing if a proponent can demonstrate a reduced parking need? Section 9-4.114 of the Planning and Zoning Regulations (Off-street parking required) mandates the provision of disabled parking spaces in accordance with California Building Code (part 2 of Title 24) Chapter 11. The parking requirements also allow flexibility if an applicant can demonstrate a lower parking need. Does the locality restrict the siting of group homes? No ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 122 of 216 Atascadero Housing Element 22 | E: Constraints Table E.12: Constraints on Housing for Persons with Disabilities What zones allow group homes other than those allowed by State law? Are group home over six persons allowed? Group homes (referred to as residential care facilities in the Planning and Zoning Regulations) of six or less individuals are allowed by right in all residential districts and downtown districts. They are allowed in the Public (P) zone with a Conditional Use Permit. Facilities with greater than 6 persons are conditionally permitted in all residential zones and the P zone. Does the City have occupancy standards in the zoning code that apply specifically to unrelated adults and not to families? No. Does the land use element regulate the siting of special needs housing in relationship to one another? No, there is no minimum distance required between two or more special needs housing. Permits and Processing How does the City process a request to retrofit homes for accessibility? Atascadero allows residential retrofitting to increase the suitability of homes for people with disabilities in compliance with ADA requirements, as permitted in the 2019 California Building Code. Does the City allow groups homes with six or fewer persons by right in single-family zones? Yes. Does the City have a set of particular conditions or use restrictions for group homes with greater than six persons? Group homes (or residential care facilities) with greater than six persons are conditionally permitted in all residential zones and the P zone. They are subject design review and are required to be incompliance with the same parking and site coverage requirements as multi-family uses. What kind of community input does the City allow for the approval of group homes? The Conditional Use Permit provides the public with an opportunity to review the project and express their concerns in a public hearing. Does the City have particular conditions for group homes that will be providing services on site? No, the City does not have special standards for group homes regarding services or operation. Table E.12: Constraints on Housing for Persons with Disabilities Building Codes Has the locality adopted the Uniform Building Code? Atascadero has adopted the 2019 California Building Code. No amendments have been made that affect the ability to accommodate persons with disabilities. Has the City adopted any universal design element standards into the code? No, the City has no adopted universal design standards at this time. Does the City provide reasonable accommodation for persons with disabilities in the enforcement of building codes and the issuance of building permits? Yes. The City adopted a reasonable accommodation ordinance in 2013. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 123 of 216 Atascadero Housing Element E: Constraints| 23 Opportunities for Energy Conservation Planning to maximize energy efficiency and the incorporation of energy conservation and green building features contributes to reduced housing costs. Energy efficient design for sustainable communities reduces dependence on automobiles. Additionally, maximizing energy efficiency reduces greenhouse gas emissions. In response to recent legislation on global climate change, local governments are required to implement measures that cut greenhouse gas emissions attributable to land use decisions (see discussion on Global Climate Change below). Cities can support energy efficiency that benefits the market, the environment, and the long-term health of the community by:  Establishing a more compact urban core, bringing residents close to work and services, therefore reducing automobile trips and reducing emissions  Implementing passive solar construction techniques that require solar orientation, thermal massing, and other energy efficient design standards  Encouraging the use of solar water heating and photovoltaics Executive Order S-E-05 initiated the first steps in establishing greenhouse gas emission reduction targets in California. This was followed by the California Global Warming Solutions Act (AB 32), which required the California Air Resources Board (CARB) to establish reduction measures. There are several areas where programs for energy conservation in new and existing housing units are supported by the City:  Through application of state residential building standards that establish energy performance criteria for new residential buildings (Title 24 of the California Administrative Code). These regulations establish insulation, window glazing, air conditioning, and water heating system requirements. The City also instituted the City Council adopted Energy Conservation Initiative in 2001.  Through appropriate land use policies and development standards that reduce energy consumption. Atascadero’s General Plan is based on the Smart Growth Principles of encouraging infill and reuse of existing land and infrastructure. The Land Use, Open Space, and Conservation Element include goals to preserve a greenbelt around the City, encourage mixed-use infill development, revitalize of the Downtown Core, and encourage compact development with a pedestrian scale and trails.  City environmental review may also require measures to reduce energy consumption.  Energy Alternatives for low-income families and how the City can perform outreach. Pacific Gas and Electric (PG&E) provides a variety of energy conservation services for residents and provides several other energy assistance programs for lower income households. PG&E also offers rebates for energy efficient home appliances and remodeling. Rebates are available for cooling and heating equipment, lighting, seasonal appliances, and remodeling (cool roofs, insulation, water heaters). These opportunities are available to all income levels and housing types. PG&E’s Energy Savings Assistance Common Area Measures facilitates energy retrofits of the common areas and central systems in multi- family properties through technical assistance, cash incentives, and program coordination to income- eligible, deed-restricted, multi-family buildings. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 124 of 216 Atascadero Housing Element 24 | E: Constraints Residential water heating and HVAC systems are major sources of energy consumption. With the application of energy efficient design and the use of solar power systems, home heating and cooling can be operated in a more efficient and sustainable manner. By encouraging solar energy technology for residential heating/cooling in both retrofits and new construction, the City can play a major role in energy conservation. There are two distinct approaches to solar heating: active and passive. The best method to encourage use of solar systems for heating and cooling is to not restrict their use in the zoning and building ordinances and to require subdivision layouts that facilitate solar use. Residential water heating can be made more energy efficient through the application of solar water heating technologies. Solar water heating relies on the sun to heat water, which is then stored for later use. A conventional water heater is needed only as a back-up. By cutting the amount of natural gas needed to heat water by 50 to 75 percent per building, solar water heating systems can lower energy bills and reduce greenhouse gas emissions significantly. There are significant areas where Atascadero can do more to encourage energy conservation in new and existing residential development to reduce the demand on energy. There are a variety of energy efficiency and greenhouse gas emission reduction strategies that can be integrated into land use decisions related to housing. As an active member of Local Governments for Sustainability, Atascadero is also participating in an effort to inventory and reduce greenhouse gas emissions. Through these and other conservation measures, the City seeks to help minimize the percentage of household income required for energy costs as well as minimize the production of greenhouse gases. Program 3.M encourages energy conservation and will help residents minimize energy-related expenses by:  Promoting environmentally sustainable building practices that provide cost savings to homeowners and developers  Providing informational material at the Community Development Department counters from PG&E and others that detail energy conservation measures for new and existing buildings, the benefits of the Green Building (San Luis Obispo Green Build), and resources to assist lower-income households with energy-related expenses  Continuing to strictly enforce the State energy standards of the Green Building Code  Enhancing partnerships with Solar Providers for installation of PV panels and other alternative electrical services for lower-income households 2. Non-Governmental Constraints The availability and cost of housing is strongly influenced by market factors over which local government has little or no control. State law requires that the housing element contain a general assessment of these constraints, which can serve as the basis for actions that local governments might take to offset their effects. The primary non-governmental constraints to the development of new housing are land costs, construction costs, and environmental constraints. Land and Construction Costs The cost and availability of capital financing affect the overall cost of housing in two ways: first, when the developer uses capital for initial site preparation and construction and, second, when the homebuyer uses capital to purchase housing. The capital used by the developer is borrowed for the short-term at ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 125 of 216 Atascadero Housing Element E: Constraints| 25 commercial rates, which are considerably higher than standard mortgage rates. Construction financing is sometimes difficult to obtain for multi-family construction, which poses a significant constraint on the production of affordable housing in Atascadero. Land costs include acquisition and the cost of holding land throughout the development process. These costs can account for as much as half of the final sales prices of new homes in small developments or in areas where land is scarce. Land costs in single-family residential neighborhoods of Atascadero range from $23,000 to $824,000 per acre.1 Among the variables affecting the cost of land are the size of lots, location and amenities, the availability and proximity of public services, and the financing arrangement between the buyer and seller. Construction cost is determined primarily by the cost of labor and materials. The relative importance of each is a function of the complexity of the construction job and the desired quality of the finished product. As a result, builders are under constant pressure to complete a job for as low a price as possible while still providing a quality product. This pressure has led (and is still leading) to an emphasis on labor-saving materials and construction techniques. The price paid for material and labor at any one time will reflect short-term considerations of supply and demand. Future costs are difficult to predict given the cyclical fluctuations in demand and supply that in large part are created by fluctuations in the state and national economies. Such policies unilaterally impact construction in a region and therefore do not deter housing construction in any specific community. According to 2020 building valuation data by the International Code Council, standard housing construction costs may average $122 to $156 per square foot for single-family residences depending on the level of amenities provided, and $112 to $167 per square foot for a multi-family residential structure, depending on construction type and excluding parking. Structured parking cost can be significant. In Atascadero, this approach to parking largely does not occur. Government Code 65583(a)(6) Development Analysis Government Code section 65583(a)(6) requires an analysis of requests to develop housing at densities below those anticipated in site inventory and the length of time between receiving approval for housing development and submittal of an application for building permit. The analysis must also look at local efforts to remove nongovernmental constraints that create a gap in the jurisdiction’s ability to meet RHNA by income category. In Atascadero, most requests for development at densities below anticipated densities are for properties designated for MDR (RMF-10) properties and very small HDR (RMF-24) properties with existing units where the property owner wants to add units to the site without removing exiting uses. There are no MDR sites in the sites inventory. In the HDR designation, most requests are turned away due to the minimum density stipulation for the RMF-24 zone. While the sites inventory has seven HDR (RMF-24) sites, all sites 1 A review of vacant land sales appropriate for residential development on Zillow.com on April 27, 2020 provided 13 vacant lots for sale within the City. Land costs were estimated from this sample and may not be representative of general land costs in the City. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 126 of 216 Atascadero Housing Element 26 | E: Constraints have a minimum size of one-half acre and only two sites have an existing use on the site. For economic reasons, most owners of large size properties strive to maximize densities. In Atascadero, the length of time between receiving approval for housing development and submittal of an application for building permit is typically one or two months depending on project complexity and the development consultant’s lead time to get construction documents complete. For example, a current multi-family residential project with complex grading and drainage plans has taken longer than usual to submit permits. Also, developers may struggle with feasibility analyses, financing, or negotiations with design professionals which are outside the control of the City. The analysis must also look at local efforts to remove nongovernmental constraints that create a gap in the jurisdiction’s ability to meet RHNA by income category. The primary non-governmental constraint is the overall cost of affordable housing development (high land and development costs). Construction trends in Atascadero in the last 10 years show that even with density bonuses offered, constructing affordable housing, especially for low- and very low-income households is not profitable to housing developers. Therefore, deed-restricted affordable units require subsidy beyond available density incentives. This places the construction burden on non-profits and similar grant funded housing developments. Some regions do not have enough of these organizations to meet the affordable housing construction needs of the region. Furthermore, the lack of funding results in affordable projects that are not always dispersed throughout the region but are concentrated in limited areas with lower development costs. While the City can offer developer incentives such as expedited permit processing and fee deferrals, it cannot afford to fully mitigate the high cost of development for affordable housing developments. While technically a governmental constraint, regulatory changes from different state entities, and which the City has no control of but must enforce, also constrain housing production in Atascadero. Regulations related to mitigation of transportation impacts (newly enacted VMT thresholds) or on-site standards and requirements for storm water management, for example, subject new housing projects to additional scrutiny and trigger a more complex environmental review process and potentially a greater level of mitigation. Again, the City of Atascadero facilitates housing development by providing technical assistance, regulatory incentives and concessions, and financial resources as funding allows. But the resources available to the City to mitigate these constraints are very limited. Availability of Financing The availability of capital to finance new residential development is a significant factor that can impact both the cost and supply of housing. Two types of capital are involved in the housing market: 1) capital used by developers for initial site preparation and construction and 2) capital for financing the purchase of units by homeowners and investors. Interest rates substantially impact home construction, purchase, and improvement costs. A fluctuation in rates of just 2.5 percent can make a dramatic difference in the annual income needed to qualify for a loan. In general, financing for new residential development is available at reasonable rates. However, economic fluctuations due to COVID-19 have caused caution among lenders and may have lasting effects through this Housing Element planning period. And while interest rates are low, lenders are considering applicants much more closely than in the past, leading to credit tightening despite affordable interest rates. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 127 of 216 Atascadero Housing Element E: Constraints| 27 Environmental and Physical Constraints Environmental Constraints Several special status species are known to occur in Atascadero, including: dwarf calycadenia, Douglas’ spineflower, Hardham’s evening-primrose, Jared’s pepper-grass, Kellogg’s horkelia, Oval-leaved snapdragon, rayless aphanactis, round-leaved filaree, Salinas milk vetch, Salinas valley goldfields, shining navarretia, and straight-awned spineflower. The City also protects unique vegetation communities that support sensitive species, including wetlands. Wetland habitat types are considered a vegetation community of special concern by the CDFG because of substantial statewide losses. Numerous creeks and blue line streams are present throughout the City and can affect feasibility of development at full capacity in those areas. The more urbanized areas of the City, where higher density housing development is typically located, are not constrained by these water features. The presence of special-status species and plant communities of special concern may affect development regulated by the City by limiting the development potential and/or adding mitigation costs. The grasslands, riparian habitats, and tracts of undeveloped land provide habitat for a diverse selection of resident and migrant wildlife. Eighteen special status bird and mammal species are known to occur in Atascadero. Barriers to wildlife movement and migration, as well as the removal of raptor nesting sites, are to be avoided in future development. The occurrence of any of these species on a site could pose constraints to a housing project. Preservation of natural flora and fauna is a basic community goal and native trees are valued community assets. The City has established regulations for the installation, maintenance, planting, preservation, protection, and selected removal of native trees within the City limits through the adoption of the Native Tree Ordinance. A tree removal permit is required for the removal of native trees (as defined by Chapter 11, Native Tree Regulations) and for pruning of the live canopy in native trees in excess of 25 percent of the existing canopy area. In addition, for each residential building permit issued, the planting of one five- gallon native tree is required. The mitigation requirements may become cumbersome for high-density projects, as tree replacement may be required on-site that is at the sole expense of the applicant. However, native and drought-tolerant landscaping may be used to meet landscape requirements and does not specifically add costs above standard Zoning Regulations and State landscaping requirements. Physical Constraints Several physical constraints may occur in the City. Parcels with steep slopes may have constraints associated with landslide hazards, grading costs, and access requirements. Landslides are relatively rare in the developed portions of the City, as compared to in the hilly, undeveloped areas. Stationary noise sources near potential sites for development may pose constraints. For example, traffic on U.S. Route 101 exceeds acceptable noise levels. Housing may be limited within 500 feet of U.S. Route 101 under CEQA due to the health hazards of siting sensitive uses near urban roads with over 100,000 vehicles per day unless appropriate mitigation can be identified and implemented. Operational noise sources near potential sites for development may pose constraints as well, such as the Southern Pacific railroad tracks that run north-south through the eastern portion of the City. Residential uses adjacent to the railroad tracks have the potential to be exposed to noise that exceed acceptable noise levels, although noise incidences are temporary (dependent on railroad operation). In addition, in high fire areas, State codes may restrict development of areas lacking secondary egress routes and in low-lying areas of the City may ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 128 of 216 Atascadero Housing Element 28 | E: Constraints be subject to flooding during a 100-year storm (see the Safety and Noise Element of the General Plan for details). ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 129 of 216 Atascadero Housing Element F: Resources| 1 F. Housing Resources State law requires that jurisdictions provide an adequate number of sites to allow for and facilitate the production of their regional share of housing. To determine whether a jurisdiction has enough land to accommodate its share of regional housing needs for all income groups, that jurisdiction must identify “adequate sites.” Under state law (California Government Code section 65583[c][1]), adequate sites are those with appropriate zoning and development standards—with services and facilities—needed to facilitate and encourage the development of a variety of housing for all income levels. The resources available for the development, rehabilitation, and preservation of housing in Atascadero are addressed here. This section provides an overview of available sites for future housing development and evaluates how these resources can work toward satisfying future housing needs. Also discussed are the financial and administrative resources available to support affordable housing. 1. Regional Housing Needs Allocation (RHNA) The 6th cycle RHNA for the San Luis Obispo region covers a 10-year planning period (December 31, 2018 through December 31, 2028) and is divided into four income categories: very low, low, moderate, and above moderate. As determined by San Luis Obispo Council of Governments (SLOCOG), the City of Atascadero’s fair share allocation is 843 new housing units during this planning cycle, with the units divided among the four income categories as shown in Table F.1. The City of Atascadero is not responsible for the actual construction of these units. The City is, however, responsible for creating a regulatory environment in which the private market could build these units. This includes the creation, adoption, and implementation of General Plan policies, zoning and development standards, and/or incentives to encourage the construction of various types of units. Table F.1: City of Atascadero RHNA Allocation 2018-2028 Income Group Total Housing Units Percentage of Units Extremely/Very Low Income (0-50% AMI)* 207 25% Low Income (51-80% AMI) 131 16% Moderate Income (80-120% AMI) 151 18% Above Moderate Income (121+% AMI) 354 42% Total 843 100% Notes: AMI: Area Median Income * Note: Pursuant to AB 2634, local jurisdictions are also required to project the housing needs of extremely low-income households (0-30% AMI). In estimating the number of extremely low-income households, a jurisdiction can use 50% of the very low-income allocation (103 units). ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 130 of 216 Atascadero Housing Element 2 | F: Resources 2. Progress towards the RHNA RHNA (RHNA Credits) Since the RHNA uses December 31, 2018 as the baseline for growth projections for the planning period, jurisdictions may count toward the RHNA housing units permitted or approved from December 31, 2018 (or starting January 1, 2019) to the start of the Housing Element planning period (December 21, 2020)1. Since January 1, 2019, 673 housing units have completed, issued, or approved in Atascadero (Table F.2). These units include 36 very low-income units, 36 low-income units, 231 moderate-income units, and 370 above moderate-income units. Affordability of Units Credited Towards the RHNA Units credited towards the RHNA are distributed among the four affordability groups (extremely/very low, low, moderate, and above moderate) based on affordability restrictions (as is the case with affordable housing projects or units built in compliance with density bonus provisions or the City’s inclusionary requirements) or housing cost for those specific types of units. For example, the market rate rents and sale prices for accessory dwelling units (ADUs), manufactured homes, and tiny homes (also known as micro-homes and typically under 1,000 square feet in size) fall within levels affordable to the households earning low (51-80% AMI) and moderate incomes (81-120% AMI) and are allocated as such. Based on current rent trends, half of the ADU credits will be allocated toward the low-income affordability category with the remaining half allocated toward the moderate category. For multi-family units, 2018 Census rental cost data by bedroom and 2020 HUD 50th Percentile Rents show that market rents for multi-family units in Atascadero are affordable to moderate income households while larger units are affordable to above moderate-income households. Accordingly, affordability for multi-family units are divided evenly between the moderate and above moderate-income categories based on market costs for multi-family rental units. Remaining RHNA The City has already achieved a portion of its RHNA with housing units permitted or approved, including all the moderate- and above moderate-income RHNA. Since January 1, 2019, 673 units have been permitted or approved in Atascadero (Table F.2). With these credits applied, the City has a remaining RHNA of 266 units (171 extremely low/very low-income units and 95 low-income units) that must be addressed within housing opportunity sites identified in this Housing Element. 1 The Housing Element planning period differs from the RHNA Planning period. The 6th Cycle RHNA covers a 10-year planning period of December 31, 2018 to December 31, 2028. The Housing Element covers an 8-year planning period of December 31, 2020 through December 31, 2028. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 131 of 216 Atascadero Housing Element F: Resources| 3 Table F.2: RHNA Credits Ex./Very Low Income (0- 50% AMI)* Low Income (51-80% AMI) Moderate Income (80-120% AMI) Above Moderate Income (121+% AMI) Total Credits Building Permits (Finalized/Issued/Applied) Single-Family Units2 0 0 1 110 111 Manufactured Homes1 0 0 3 0 3 Multi-Family Units3 3 6 73 74 156 Accessory Dwelling Units4 0 11 12 0 23 Subtotal 3 17 89 184 293 Planning Approvals Emerald Ridge (multi-family units)3 0 0 86 86 172 Grand Oaks Micro Homes (SFR)5 0 0 30 0 30 Hartberg PD3 (multi-and single- family units) 3 6 19 47 75 People's Self Help2 30 10 0 0 40 Principal Mixed-Use (attached/ detached single-family units)2 0 3 3 46 52 Single-Family Units, miscellaneous 0 0 0 3 3 Multi-Family Units, miscellaneous3 0 0 4 4 8 Subtotal 33 19 33 295 380 Total Credits 36 36 231 370 673 2018-2028 RHNA 207 131 151 354 843 Remaining RHNA after Credits Applied 171 95 -80 -16 266 Notes: 1. Affordability manufactured homes are assumed to be within the affordability range of moderate-income families, as these housing types provide more affordable options without the units being subsidized. The average cost for a manufactured unit in Atascadero is $180,363 for a typical three-bedroom unit according to the San Luis Obispo County Accessory Dwelling Unit and Mobile/Manufactured Home Market Study Report, January 2020. 2. Identified affordable units have a declaration of restrictions recorded on the property. 3. Affordability for multi-family units in the very low- and low-income categories is based on a declaration of restrictions recorded on the property. Affordability for non-restricted multi-family units are divided evenly between the moderate- and above moderate-income categories based on market costs for multi-family rental units. 2018 Census rental cost data by bedroom and 2020 HUD 50th Percentile Rents show that market rents for multi-family units in Atascadero are affordable to moderate-income households, while larger units are affordable to above moderate-income households. 4. Affordability for ADUs is divided evenly between the low- and moderate-income categories. In March 2020, Apartments.com estimated that the average rent for a studio apartment in Atascadero ($893) and the average rent for a one-bedroom apartment in Atascadero ($1,306) meets the affordability criteria for low-income persons (studio units, one-person households) for moderate-income persons (one-bedroom units, one-person households) set forth in Table D.18: Affordable Housing Costs by Household Size and Tenure – 2019. 5. Grand Oaks Micro Homes fall within the affordability levels in Table D.18 for moderate-income households. Additionally, three units within the Grand Oaks development are deed restricted for moderate-income households via a density bonus agreement. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 132 of 216 Atascadero Housing Element 4 | F: Resources 3. Residential Sites Inventory State law requires that jurisdictions demonstrate in the Housing Element that the land inventory is adequate to accommodate that jurisdiction’s share of the region’s projected growth. The City has a remaining RHNA of 266 units in the extremely/very low- and low-income categories. The City has various residential and mixed-use development opportunities with sufficient capacity to meet and exceed the identified housing need. A detailed listing of sites, consistent with State law, is included in Table F.7. Sites Inventory Considerations Realistic Capacity Consistent with HCD Guidelines, the methodology for determining realistic capacity on each identified site must account for land use controls and site improvements. A realistic density calculation of 80 percent of the maximum density has been applied to sites allowing multi-family development. The 80 percent buildout factor is based on historical trends and the assumption that development standards combined with unique site features may not always lead to 100 percent buildout. The realistic capacity for mixed- use development is based on typical densities of existing or approved mixed-use developments. The two most recently approved mixed-use projects in Atascadero, La Plaza Development (currently under construction) and the Downtown Colony Lofts (approved in 2019), will be developed at 28.2 and 27.8 units/acre, respectively. A realistic density calculation of 80 percent of the maximum density will be applied to sites allowing mixed-use development. To ensure that the realistic capacity takes into consideration the development of non-residential uses for mixed-use projects, such as ground floor commercial uses, only half the site acreage is used in the capacity calculation. This provides for a conservative estimate of development potential as many of the identified mixed-use sites can achieve higher residential capacity. Densities Appropriate for Accommodating Lower Income Housing The capacity of sites that allow development densities of at least 20 units per acre is credited toward the lower-income RHNA based on state law. The California Government Code states that if a local government has adopted density standards consistent with the population based criteria set by state law (at least 20 units per acre for Atascadero), HCD is obligated to accept sites with those density standards (20 units per acre or higher) as appropriate for accommodating the jurisdiction’s share of regional housing need for lower-income households. Per Government Code Section 65583.2(c)(3)(B), the City’s High-Density Residential designation (20-24 du/ac) is consistent with the default density standard of 20 units per acre and therefore considered appropriate to accommodate housing for lower-income households. The Commercial Professional (CP) and Commercial Retail (CR) zones, which allow residential development in a mixed-use format at a density of up to 24 units per acre, are also consistent with the default density standard and therefore considered appropriate to accommodate housing for lower-income households. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 133 of 216 Atascadero Housing Element F: Resources| 5 Assembly Bill 1397 Consistent with updated Housing Element law (Assembly Bill 1397) related to the suitability of small and large sites, the lower-income sites inventory presented in this section is predominately limited to parcels that are between 0.5 and 10 acres in size, as the state has indicated these size parameters are most adequate to accommodate lower-income housing need. One mixed-use site consists of three parcels, two of which are less than one-half acre in size. These sites are included because they comprise a larger site, are under common ownership, and function as a single site. AB 1397 also adds specific criteria for assessment of the realistic availability of non-vacant sites during the planning period. If non-vacant sites accommodate half or more of the lower-income need, the housing element must describe “substantial evidence” that the existing use does not constitute an impediment for additional residential use on the site. Non-vacant sites make up just 10 percent of all lower-income sites in the sites inventory. Among all lower income sites (with a total capacity of 368 units), only two sites (with a total capacity of 37 units) are non-vacant. Sites Inventory The Housing Element Sites Inventory consists predominantly of vacant residential and mixed-use sites in addition to projected ADU production, two vacant single-family residential sites with proposed development, and two underutilized high-density residential sites with a high probability of development within the planning period. Together, these sites ensure that the remaining RHNA can adequately be accommodated during the planning period. The sites have no identified constraints that would prevent development or reuse during the Housing Element period. Table F.3 summarizes the sites inventory (see also Figures F.1 and F.2). Adequacy of Sites for RHNA The Sites Inventory identifies capacity for 497 units, 369 of which are on sites suitable for development of lower-income housing. Overall, the City can adequately accommodate—and have excess capacity for— the remaining RHNA of 266 units. Detailed Sites Inventory The following sections provide details on the City’s 2020-2028 Housing Element sites inventory. Accessory Dwelling Units As noted in the credits discussion above, in 2019, 23 accessory dwelling unit building permits were applied for, issued, and finaled in Atascadero. The City projects that during the planning period, approximately 225 accessory dwelling units (ADUs) will be developed (25 per year) based on ADU trends in Atascadero and recent, favorable ADU legislation which has created new incentives and streamlined processes to build ADUs. As part of Housing Element implementation, the City will create and provide pre-approved ADU plans as a tool for encouraging development of ADUs and lowering plan review costs for applicants (Program 1.D). The projected ADUs are included as credits consistent with HCD guidelines. New ADUs are ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 134 of 216 Atascadero Housing Element 6 | F: Resources anticipated to be affordable to low- and moderate-income households given their comparable size and rent relative to small rental units in Atascadero (studio and one-bedroom units). The projected ADUs are divided evenly between the low- and moderate-income categories. In March 2020, Apartments.com estimated that the average rent for a studio apartment in Atascadero, CA was $893 and the average rent for a one-bedroom apartment in Atascadero, CA $1,306. The rental cost for studio apartments meets the affordability criteria for low-income, one-person households, and the rental costs for one-bedroom apartments meets the affordability criteria for moderate-income, one-person households, as set forth in Table D.18: Affordable Housing Costs by Household Size and Tenure – 2019 in Section D: Housing Needs Assessment. Vacant Single-Family Residential (SFR) Sites Two vacant sites zoned Single-Family Residential (SFR) are included in this inventory due to proposed projects on the site. The 1.8-acre Annex subdivision site (APNs: 049-102-020, -032) is in the process of being developed with six single-family homes and six accessory dwelling units. The 1.3-acre Atascadero Avenue site (APN: 056-181-039) is in the process of being developed with four single-family homes and Table F.3: Sites Inventory Summary Ex./Very Low Income (0-50% AMI)* Low Income (51-80% AMI) Moderate Income (80-120% AMI) Above Moderate Income (121+% AMI) Total Sites Accessory Dwelling Units1 0 112 113 0 225 Vacant/Proposed Project Single- Family Residential (SFR) Sites with ADUs1 0 5 5 10 20 Vacant High Density Residential (HDR) Sites2 129 0 0 0 129 Vacant Mixed-Use Sites2 86 0 0 0 86 Underutilized High Density Residential (HDR) Sites2 37 0 0 0 37 Total Sites 252 117 118 10 497 Remaining RHNA after Credits Applied 171 95 -80 -16 266 Surplus/Shortfall (+/-) after sites applied -81 -22 -198 -26 -327 Notes: 1. Affordability for ADUs is divided evenly between the low- and moderate-income categories. In March 2020, Apartments.com estimated that the average rent for a studio apartment in Atascadero ($893) and the average rent for a one-bedroom apartment in Atascadero ($1,306) meets the affordability criteria for low-income persons (studio units, one-person households) for moderate-income persons (one-bedroom units, one-person households) set forth in Table D.18: Affordable Housing Costs by Household Size and Tenure – 2019. 2. The capacity of sites that allow development densities of at least 20 units per acre are credited toward the lower- income RHNA based on state law. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 135 of 216 Atascadero Housing Element F: Resources| 7 four accessory dwelling units. The ADU units are divided equally between the low- and moderate-income categories, as the rental costs for studio apartments meet the affordability criteria for low-income persons (one-person households) and the rental costs for one-bedroom apartments meet the affordability criteria for moderate-income persons. The single-family units are credited against the above-moderate income RHNA. Vacant High Density Residential (HDR) Sites The sites inventory includes five vacant High Density Residential/RMF-24 (HDR/RMF-24) sites totaling 5.9 acres with a realistic capacity of 129 units (Table F.4). The HDR designation allows a density of 20 to 24 units per acre. Because these sites allow development densities of at least 20 units per acre (the City’s default density as established by HCD), they are credited toward the lower-income RHNA. HDR Sites 1, 4, and 5 are subject to the provisions of AB 1397, which requires that vacant sites identified in the previous two Housing Elements only be deemed adequate to accommodate a portion of the housing need for lower-income households if a site is zoned at residential densities consistent with the default density established by HCD (20 units per acre) and the site allows residential use by right for housing developments in which at least 20 percent of the units are affordable to lower-income households. The sites are included in this 6th Cycle Housing Element based on the allowed density in the HDR/RMF-24 sites (20 to 24 units per acre) and because the City of Atascadero has created a by-right process (not subject to a CUP or specific plan) for RMF-24 properties identified in the Housing Element. This applies to all residential development on identified RMF-24 sites, including developments in which at least 20 percent of the units are affordable to lower-income households. Table F.4: Vacant High Density Residential (HDR) Sites Site # APN Address Size (ac.) GP/ Zone Realistic Capacity (units) Site Details HDR 11 049-042- 025 1055 El Camino Real 1.80 HDR/ RMF-24 34 HDR Site 1 is located along El Camino Real south of Santa Cruz Road, adjacent to the Hilltop Mobile Manor. The vacant site was included in the 4th and 5th cycle Housing Element. HDR 2 049-151- 005 2405 El Camino Real 2.04 HDR/ RMF-24 39 HDR Site 2, located on Rio Rita Street, is part of the former Walmart site. It is the only parcel designated for HDR within the former project site. The site was included in the 5th cycle Housing Element. It is located adjacent to two parcels with property owners who have requested upzoning from a single-family zone to a multi-family, higher-density residential zone. HDR 3 028-192- 060, 061, 062, 063 5266, 5272, 5280 Traffic 0.67 HDR/ RMF-24 13 HDR Site 3 is located on Traffic Way just north of Honda Avenue. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 136 of 216 Atascadero Housing Element 8 | F: Resources Table F.4: Vacant High Density Residential (HDR) Sites Site # APN Address Size (ac.) GP/ Zone Realistic Capacity (units) Site Details Way, 5255 Alamo HDR 41 030-101- 053 8959 Curbaril 0.87 HDR/ RMF-24 17 HDR Site 4 is located on Curbaril Avenue north of Santa Ysabel Avenue. The site was included in the 4th and 5th cycle Housing Element. HDR 51 045-321- 024 9355 Avenida Maria 0.51 HDR/ RMF-24 26 HDR Site 5 is a vacant portion of the Knolls at the Avenida project. The Phase 2 site is approved for 26 affordable housing units. The site was included in the 4th and 5th cycle Housing Element. Note: 1. Subject to the provisions of AB1397: Projects with at least 20% affordable units must be permitted by right. Vacant Mixed-Use Sites Four mixed-use sites are included in the sites inventory with a total acreage of 8.8 acres and a total realistic capacity of 86 units (see Table F.5). Mixed-use sites make up a small percentage (17%) of the site inventory capacity and just 23 percent of the capacity for all lower-income sites. The sites are zoned for Commercial Retail (CR), which allows a density of up to 24 units per acre. The mixed-use sites in this inventory have been chosen based on their size, availability, and appropriateness for residential development. Because these sites allow development densities of at least 20 units per acre, they are credited toward the lower- income RHNA. None of the identified mixed-use sites is subject to the provisions of AB 1397. Table F.5: Vacant Mixed-Use Sites Site # APN Address Size (ac.) GP/ Zone Realistic Capacity (units) Site Details MU 1 049-163- 044 3745 El Camino Real 1.86 GC/ CR 18 MU Site 1 is located on the east side of El Camino Real just south of Campbell Lane. The site is the only vacant property in a group of four Commercial properties. MU 2 030-511- 001 8725 Arcade Rd 0.65 GC/ CR 6 MU Site 2 is located on Arcade Road. It is one parcel removed from El Camino Real. The size of the site would likely accommodate a development with a residential component comprising a quarter of the development. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 137 of 216 Atascadero Housing Element F: Resources| 9 Table F.5: Vacant Mixed-Use Sites Site # APN Address Size (ac.) GP/ Zone Realistic Capacity (units) Site Details MU 3 030-512- 002, 011, 012 8580 El Centro, 8805 & 8705 Cascada 1.14 GC/ CR 12 MU Site 3 is located on Cascada Road and is made up of three parcels. It is one parcel removed from El Camino Real. The size of the site would likely accommodate a development with a residential component comprising a quarter of the development. MU 4 045-331- 014 11600 El Camino Real 5.19 MU-PD/ CR 50 MU Site 4 (Dove Creek commercial parcel) is located on the west side of El Camino Real north of Santa Barbara Road and one block from the City’s southern boundary. This site has the potential to become a mixed- use node at the south end of the City. Underutilized High Density Residential (HDR) Sites The sites inventory includes two partially vacant, underutilized High Density Residential/RMF-24 (HDR/RMF-24) sites (see Table F.6). The City has many underutilized RMF-24 zoned sites; the two sites included were chosen based on size, location, and high potential for redevelopment. The HDR designation allows a density of 20 to 24 units per acre. Because these sites allow development densities of at least 20 units per acre (the City’s default density as established by HCD), these units are credited toward the lower- income RHNA. These two partially vacant, underutilized sites make up a small percentage (7%) of the site inventory capacity and just 10 percent of the capacity for all lower-income sites. Underutilized Site 1 is located in an area undergoing a transition from lower-density to high-density residential uses. On the north side, the site is adjacent to a high-density, affordable housing project that is approved and under development (in Summer 2020). On the south side, the site is one parcel removed from a permitted 208-unit apartment development. On the east side, the site is adjacent to two parcels on which property owners have requested that the City upzone to accommodate a high-density residential use (HDR/RMF-24). The site is also located just south of a large vacant property that is zoned for a commercial/ mixed-use development. The size and location in an area that is transitioning to higher- density residential and mixed-use make this property very likely to redevelop within the planning period. The 1.93-acre site is currently developed, with one single-family unit at the rear of the property. Only the vacant portion of the property has been used to calculate realistic capacity. The vacant portion of the property (1.4 acres) has a realistic capacity of 27 units. Underutilized Site 2 is located on Santa Ysabel Avenue, one parcel east of El Camino Real. The site is located adjacent to an area planned to transform to mixed and residential uses along El Camino Real. The property backs up to a commercial center (Adobe Plaza) and is adjacent to an apartment complex. The ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 138 of 216 Atascadero Housing Element 10 | F: Resources 0.51-acre property is currently developed with one single-family unit, but the remainder of the property is unimproved. The property has a realistic capacity of 10 units. Table F.6: Underutilized High-Density Residential Sites Site # APN Address Size (ac.) GP/ Zone Realistic Capacity (units) Site Details U 1 049-151- 020 2453 El Camino Real 1.4 HDR/ RMF-24 27 Underutilized Site 1 is located in an area transforming from lower density to high density residential uses. The 1.93-acre site is currently developed with one single-family unit at the rear of the property. Only the vacant portion of the property is used to calculate realistic capacity. The vacant portion of the property (1.4 acres) has a realistic capacity of 27 units. U 2 030-121- 003 7298 Santa Ysabel 0.51 HDR/ RMF-24 10 Underutilized Site 2 is located on Santa Ysabel Avenue one parcel east of El Camino Real. The site is located adjacent to an area that is intended to transform to mixed and residential uses along El Camino Real. The 0.51-acre property is currently developed with one single-family unit, but the remainder of the property is unimproved. The property has a realistic capacity of 10 units. 4. Site Infrastructure and Services Site development potential indicated in the sites inventory is consistent with (and in most cases, lower than) the development capacity reported in the Land Use, Open Space & Conservation Element. Full urban-level services are available to each site in the inventory. Such services are more than adequate for the potential unit yield on each site. Specifically, water and sewer service are available or are programmed to be made available for all the sites included in the inventory. Water and Sewer Infrastructure Water service in the City is supplied by the Atascadero Mutual Water Company (AMWC). AMWC provides water service within and around Atascadero. The water system includes approximately 250 miles of pipeline and 17 active wells that pump from the Atascadero sub-basin of the Paso Robles Ground Water ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 139 of 216 Atascadero Housing Element F: Resources| 11 Basin (both riparian and appropriated Salinas River underflow). AMWC has over 10,000 customer service connections, 3,700 valves, and 1,700 fire hydrants. The 2016 Urban Water Management Plan (UWMP) indicates AMWC has sufficient resources to serve future demands through 2040 based on population projections and reasonably available groundwater and imported water. The 2016 UWMP also clarifies that that lower-income residential demands are included in AMWC’s future demand projections. Due to the increase in the cost of water service to ensure a reliable water supply, the City recognizes that the connection fees for water is critical for the development of affordable housing. Program 3.L requires the City to work with AMWC to explore possible options to ease the burden of water service fees for second units and other affordable housing projects. The City of Atascadero provides wastewater collection and treatment service for a portion of the City’s population, serving an area consisting of approximately 2,000 acres of the roughly 15,000 acres within the City boundary. Approximately 5,000 residential, commercial, and industrial customers are served by the wastewater collection and treatment system. The remainder of the City’s population is served by on-site wastewater treatment systems (septic systems). The City’s Wastewater Division maintains a 1.4 million gallon-per-day (mgd) wastewater treatment facility, over 66 miles of pipeline, and 13 wastewater- pumping stations. The treatment plant operates at approximately 96 percent capacity, experiencing an average daily flow of 1.38 mgd. Average daily flow for residential use is estimated to be 100 gallons per capita per day. Based on the 2020 average household size of 2.43 persons (California Department of Finance), the daily flow is 0.0002 mgd per household. The average daily flow of the remaining RHNA units is estimated to be 0.05 mgd. The City has begun the process of analyzing and defining the project scope for an expanded and enhanced treatment facility. Construction is budgeted and is expected to be completed in 2024. The expansion will be completed during the planning cycle. Minor modifications can also be made to ensure capacity until construction begins on the new facility. The facility will be designed to accommodate anticipated growth through 2024 with opportunities for expansion as needed for growth projections beyond the 20-year design horizon. All sites identified in the sites inventory are located adjacent to existing sewer lines to facilitate connections and are located within the urban services line that identifies the extent of areas serviced by wastewater service or where the City anticipates extending services to in the future. It is anticipated that housing development through the planning period can be accommodated by the existing and, eventually upgraded facility. Dry Utilities All sites in the land use inventory lie within developed areas and have access to full dry utilities. Electricity services in Atascadero are provided by Pacific Gas & Electric (PG&E), which has a 70 kilovolt electrical transmission line that extends north-south from San Luis Obispo through Atascadero and on to Paso Robles and beyond. A substation is located near Atascadero Lake. Two transmission lines also branch out from the substation westerly to Cayucos and Harmony. Electricity is generally available throughout Atascadero through a local distribution system of mostly overhead wires. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 140 of 216 Atascadero Housing Element 12 | F: Resources Natural gas is provided by the Southern California Gas Company, with natural gas lines extending north- south and east-west from Atascadero. The north-south line follows El Camino Real and U.S. 101, connecting southerly to San Luis Obispo and Santa Maria, and northerly to Paso Robles and beyond. The east-west line generally follows Route 41 east to Shandon. Natural gas is generally available throughout Atascadero through a local distribution system. Additional dry utilities include various telecommunications providers and cable providers and solid waste collection (WM Waste Management). 5. Environmental Constraints The sites inventory analysis reflects land use designations and densities established in the General Plan Land Use, Open Space & Conservation Element. Thus, any environmental constraints that would lower the potential yield (e.g., steep slopes) have already been accounted for. Any additional constraints that would occur on a more detailed site review basis would be addressed as part of the individual project review process. The City’s capacity to meet its regional share and individual income categories are not constrained by any environmental conditions. 6. Financial Resources The City currently utilizes several sources of funding to assist in the provision of quality housing to lower- income residents.  The City’s inclusionary housing program offers the option of paying a fee in lieu of building affordable housing for projects of 10 units or fewer. Fees deposited into the account may be used in the acquisition, construction, or rehabilitation of affordable housing. As of May 2020, the fund balance was $908,000.  The City of Atascadero participates in HUD federal funding programs through the Urban County of San Luis Obispo. The County of San Luis Obispo is the lead agency in administering HUD funding programs for the County and six participating cities of San Luis Obispo, Paso Robles, Atascadero, Morro Bay, Arroyo Grande, and City of Pismo Beach. Administration of the Community Development Block Grant (CDBG) program is divided among the County and the six participating cities, with the County being the lead agency. Administration of the HOME Investment Partnership (HOME) and the Emergency Solutions Grant (ESG) programs is handled by the County of San Luis Obispo. In 2018, the Urban County used $1.9 million in CDBG funds, $1 million in HOME funds, and $148,000 in ESG funds for projects and services that address unmet community needs by providing gap financing for vital services and facilities.  Another source of local housing funding is through the San Luis Obispo County Housing Trust Fund (SLOCHTF), which is a private nonprofit corporation created to increase the supply of affordable housing in San Luis Obispo County for very low-, low-, and moderate-income households. SLOCHTF provides financing and technical assistance to help private developers, nonprofit corporations, and government agencies produce and preserve homes that working families, seniors on fixed incomes and persons with disabilities can afford to rent or buy. Since incorporating in 2003, SLOCHTF has loaned nearly $25 million to assist over 1,000 units of ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 141 of 216 Atascadero Housing Element F: Resources| 13 affordable housing. The loans have also assisted over 200 beds for those in need of shelter and care. 7. Administrative Resources Agencies with administrative capacity to implement programs contained in the Housing Element include the City of Atascadero and local and regional non-profit private developers. The Planning Division within the City of Atascadero Community Development Department takes the lead in implementing Housing Element programs and policies. The Division is responsible for implementing the General Plan by ensuring that development projects are consistent with the General Plan and ensuring that development projects are consistent with current local zoning ordinances and state codes. The City also works closely with non- profit developers to expand affordable housing opportunities in Atascadero. • El Camino Homeless Organization (ECHO) is a non-profit organization serving the homeless population of Northern San Luis Obispo County. The organization also assists those in need with obtaining permanent housing and developing skills necessary to lead a more stable life. ECHO operates a permanent shelter in Atascadero at 6370 Atascadero Avenue, within the City’s Emergency Shelter Overlay Zone. • The Community Action Partnership San Luis Obispo (CAPSLO) provides a wide variety of social services in San Luis Obispo County. CAPSLO operates the Maxine Lewis Memorial Homeless Shelter and the Prado Day Center in San Luis Obispo. They also operate Head Start and Migrant Head Start programs and two health centers in San Luis Obispo and Arroyo Grande. The Energy Conservation division provides weatherization and home repairs throughout the County. • Habitat for Humanity is an international non-profit organization dedicated to partnering with those in need of safe and affordable homes. The San Luis Obispo County Habitat chapter has been active since 1997 and is involved in several development projects throughout the Central Coast. Habitat for Humanity for San Luis Obispo County has built 17 homes: four in Atascadero, one in Cambria, three in Paso Robles, four in Grover Beach, and five in San Luis Obispo. • The Housing Authority of San Luis Obispo County (HASLO) was created to provide housing assistance for the County's lower-income residents. The Housing Authority administers the Housing Choice Voucher (formerly Section 8) rental assistance program and manages public housing developments. The Housing Authority also administers the Tenant Based Rental Assistance (TBRA) Program for the San Luis Obispo Supportive Housing Consortium and established the San Luis Obispo Non-Profit Housing Corporation to take advantage of federal tax credits. The Non-Profit Housing Corporation has since helped with the development of the low- income Atascadero Senior Housing Project in 2008 and owns two housing complexes in Atascadero. • People's Self-Help Housing (PSHH) is a diverse, nonprofit organization committed to furthering opportunities for decent, safe, affordable housing and support services in San Luis Obispo, Santa Barbara, and Ventura Counties. PSHH has two primary programs: Self Help Homeownership Program and a Rental Housing Development and Construction Services Program. Additionally, PSHH administers the Supportive Housing Program, assisting residents with accessing community ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 142 of 216 Atascadero Housing Element 14 | F: Resources services and provides home ownership counseling. PSHH has constructed 15 affordable home- ownership properties and currently owns and operates Atascadero Gardens, a 17-unit affordable rental complex. The purchase of this building in 1999 prevented a pending conversion to market rate units and tenant displacement. Since 2012, PSHH has developed a tract of 24 single-family residential homes in El Camino Oaks subdivision (Oakgrove Phase II) that fell into foreclosure and constructed an 11-unit affordable (very low- and low-income units) subdivision tract on Atascadero Avenue that was purchased from a bankruptcy auction. • Transitional Food and Shelter (TFS) is a charitable organization that operates the Medically Fragile Homeless program, a county-wide service, based in Atascadero and the Atascadero Warming Center which serves those living in Atascadero and surrounding areas. The Medically Fragile Homeless program (MFH) provides small, individual housing, supportive services and case management for the medically fragile homeless in San Luis Obispo County since 2001. The Atascadero Warming Center (AWC) is open November 1st through April 15th when the temperature is forecast to be 40 degrees or less and/or there is a 50 percent chance or greater of rain. The low barrier, behaviorally based center provides meals, clothing and other services through a volunteer effort. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 143 of 216 Atascadero Housing Element F: Resources| 15 ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 144 of 216 Atascadero Housing Element 16 | F: Resources ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 145 of 216 Atascadero Housing Element F: Resources| 17 Table F.7: Sites Inventory Table Site # APN Size (ac.) GP/ Zone Max. Density (du/ac) Existing Use Realistic Capacity (units) Affordability Level Infrastructure Capacity Onsite Constraints SFR 1 049-102-020 0.63 SFR-X/ RSF-Y 1 Vacant 6 SFR/ 6ADU Low/ Moderate/ Above Moderate Yes No 049-102-032 1.17 SFR-X/ RSF-Y 4 Vacant 6 SFR/ 6ADU Low/ Moderate/ Above Moderate Yes No SFR 2 056-181-039 1.30 SFR-X/ RSF-X Vacant 6 SFR/ 6ADU Low/ Moderate/ Above Moderate Yes No HDR 11 049-042-025 1.80 HDR/ RMF-24 24 Vacant 34 Very Low/Low Yes No HDR 2 049-151-005 2.04 HDR/ RMF-24 24 Vacant 39 Very Low/Low Yes No HDR 3 028-192-060 0.67 HDR/ RMF-24 24 Vacant 13 Very Low/Low Yes No 028-192-061 HDR/ RMF-24 24 Vacant Very Low/Low Yes No 028-192-062 HDR/ RMF-24 24 Vacant Very Low/Low Yes No 028-192-063 HDR/ RMF-24 24 Vacant Very Low/Low Yes No HDR 41 030-101-053 0.87 HDR/ RMF-24 24 Vacant 17 Very Low/Low Yes No HDR 51 045-321-024 0.51 HDR/ RMF-24 24 Vacant 26 Very Low/Low Yes No MU 1 049-163-044 1.86 GC/CR 24 Vacant 18 Very Low/Low Yes No MU 2 030-511-001 0.65 GC/CR 24 Vacant 6 Very Low/Low Yes No ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 146 of 216 Atascadero Housing Element 18 | F: Resources Table F.7: Sites Inventory Table Site # APN Size (ac.) GP/ Zone Max. Density (du/ac) Existing Use Realistic Capacity (units) Affordability Level Infrastructure Capacity Onsite Constraints MU 32 030-512-002 2 0.28 GC/CR 24 Vacant 3 Very Low/Low Yes No 030-512-011 2 0.37 GC/CR 24 Vacant 4 Very Low/Low Yes No 030-512-012 0.50 GC/CR 24 Vacant 5 Very Low/Low Yes No MU 4 045-331-014 5.19 MU- PD/CR 24 Vacant 50 Very Low/Low Yes No U 1 049-151-020 1.4 HDR/ RMF-24 24 1 SFR unit– size reflects undeveloped portion 27 Very Low/Low Yes No U 2 030-121-003 0.51 HDR/ RMF-24 24 1 SFR unit 10 Very Low/Low Yes No Note: 1. Subject to the provisions of AB1397: Projects with at least 20% affordable units must be permitted “by-right”. 2. Sites under 0.5 acres are included only if they are part of a larger site under common ownership that functions as a single use. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 147 of 216 Atascadero Housing Element G: Accomplishments| 1 G. 2014-2019 Housing Element Program Accomplishments This chapter analyzes program performance from the 2014-2019 Housing Element programs. State law (California Government Code Section 65588[a]) requires each jurisdiction to review its Housing Element as frequently as appropriate and evaluate:  The appropriateness of the housing goals, objectives, and policies in contributing to the attainment of the state housing goal  The effectiveness of the Housing Element in attainment of the community’s housing goals and objectives  Progress in implementation of the Housing Element This evaluation provides valuable information on the extent to which programs have achieved stated objectives and whether these programs continue to be relevant to addressing current and future housing needs in Atascadero. The evaluation provides the basis for recommended modifications to policies and programs and the establishment of new housing objectives. Following the evaluation table, the quantified objective performance is summarized. Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1 -1: Continue street and infrastructure improvement projects to benefit existing high-density residential areas. Provision of infrastructure in high-density areas of the City continues to be a priority for the City. This program will remain in the Housing Element. Program 1.1-2: Continue to require the use of specific plans for residential projects of 100 or more units. This program applies to single-family residential developments only. While the specific plan requirement will remain as a program, the City continues to review each project to determine the most efficient and effective process to meet our housing and development goals. This program will remain in the Housing Element. Program 1.1-3: Continue to allow manufactured housing and group housing in accordance with State law. Seventeen modular homes have been installed as permanent residences since the 2104 Housing Element update. The City updated definitions for clarity and consistency with state law. Group housing is provided throughout the City but is not tracked at this time. The City treats manufactured homes as a single-family dwelling and permitted in all zones that allow single-family housing. This program has been implemented and is removed from the Housing Element. Program 1.1-4: Support the extension and expansion of sewer service for the Eagle Ranch annexation area by allocating the funding necessary. The City is currently updating the wastewater treatment plant facilities plan. The Eagle Ranch project has been withdrawn. This program is no longer appropriate since the area is no longer being annexed. While this area remains within the city’s sphere of influence, development of Eagle Range within the planning period is unlikely. The program is removed. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 148 of 216 Atascadero Housing Element 2 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1-5: Continue to allow mixed residential and commercial development and promote second- and third-story residential development in the City’s downtown zoning districts. Taking into account market conditions and development costs, the City will provide, when possible, developer incentives such as expedited permit processing and fee deferrals for units that are affordable to lower income households. The City will publicize these incentives on the City’s website (www.atascadero.org) within one week of a confirmed decision to make them available in a timely fashion. The La Plaza project was approved in 2017 and includes 42 residential units, 38 of which are studio and one-bedroom units equating to affordable-by-design units. The City has also approved two other mixed-use developments resulting in a total of six units. To date, the City has met its projected unit goal for mixed-use development. Provision of housing in the City’s Downtown remains an important City goal. This program will remain. Program 1.1-6: Adopt a Rural Residential Zone in the Zoning Regulations consistent with its designation on the Zoning Map and standards that distinguish it from the Residential Suburban zone (to facilitate the development of a variety of housing types). The City is reviewing all zoning designations in preparation for the upcoming comprehensive General Plan update. This program will remain in the Housing Element and be addressed as part of the upcoming General Plan update. Program 1.1-7: Continue to encourage, where suitable, Planned Unit Development (PD) Overlay Zones, particularly the PD-25 zone of small lot subdivisions, for higher density attached or row- house style housing in the RMF-10 and RMF-16 zoning districts. Staff continues to encourage use of PDs for high-quality design and flexibility of development standards. Staff is looking at allowing small lot subdivisions by right as part of the next General Plan update. Since 2014, over 80 units have been approved through the PD overlay process. The RMF-16 zone has been amended to allow development at a density of 24 units per acre and named RMF-24. An updated version of this program is included in this Housing Element. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 149 of 216 Atascadero Housing Element G: Accomplishments| 3 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1-8: Continue to maintain an affordable housing density bonus ordinance that establishes procedures for obtaining and monitoring density bonuses in compliance with State law. Following adoption the City shall regularly update the ordinance to be in compliance with Government Code §65915 Ordinance. The City has adopted an ordinance for state density bonus projects and continues to monitor changes in the law to provide updates as needed. The City issued over 60 residential units in accordance with state density bonus law. The City will adopt an updated density bonus ordinance to be consistent with state law. This density bonus program is an important component of the City’s affordable housing strategy and will remain in the Housing Element, including an action to update the City’s density bonus ordinance to remain in compliance with Government Code §65915. Program 1.1-9: Continue to monitor the impact of the City’s current inclusionary housing policy on production of market rate housing in response to market conditions. If the policy presents an obstacle to the development of the City's fair share of regional housing needs, the City will revise the policy accordingly. The City is reviewing the inclusionary housing policy and looking at ways to encourage development of residential units that are affordable-by-design, including reducing impact fees for smaller units and capping unit sizes for high-density residential projects. There are economic challenges to requirements for affordable housing production within smaller projects and infill development, especially units that are deed restricted and allow for minimal equity gains at the low- and very low-income level. The state is also focused on streamlining housing projects, limiting the ability of cities to apply increased affordability standards to housing projects through discretionary action. As part of the City's Housing Element update, options for affordable impact fees and restructuring of the existing Inclusionary Housing Policy are being contemplated. This program is an important component of the City’s affordable housing strategy and will remain in the Housing Element; it will be folded into a combined inclusionary housing program. Program 1.1-10: Adopt an inclusionary housing ordinance that requires residential developments to provide deed- restricted, affordable units or an in- lieu fee. The inclusionary ordinance shall be consistent with state rent control laws for rental housing. The City will explore crafting an affordable housing ordinance as a part of its strategic planning initiatives. The current policy allows for use of the state Density Bonus program in lieu of the City's more stringent affordable housing requirement. Because density bonus law requires only moderate level deed restriction of for-sale units, the City is limited in its ability to require low or very-low income units at this time. This program is an important component of the City’s affordable housing strategy and will remain in the Housing Element as part of a combined inclusionary housing program. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 150 of 216 Atascadero Housing Element 4 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1–11: To encourage the development of second units, the City will evaluate the development standards and update the Zoning Regulations for second units (secondary residential units). For example, the City will explore incentives such as eliminating the covered parking requirement for a secondary residential unit. The City is in the process of updating the ordinance to be consistent with state law. Since 2014, the City has issued over 25 permits for ADUs. Due to the numerous changes to state laws regulating ADU development (previously known as second units), the City will adopt a revised ADU ordinance. This program is an important component of the City’s affordable housing strategy and will remain in the Housing Element with strengthened actions to promote development of ADUs. Program 1.1–12: To encourage the development of second units, the City should consider reduced development impact fees for second units as part of an AB 1600 study. The City will also work with Atascadero Mutual Water Company to investigate the possibility of reductions to water connection fees for second units. Part of the City's current development impact fee study efforts includes examining development impact fees in relation to ADUs and unit size to provide incentives for the development of units that are affordable-by-design. It is also the City's understanding that the Atascadero Mutual Water Company continues to evaluate and reduce water meter fees for ADUs. Recent state law addresses impact fee exemptions or limitations based on the size of the ADU. A revised ADU ordinance will address impact fees consistent with state law. This program is removed and replaced with an updated program addressing ADU development. Program 1.1–13: The City will consider an amnesty program that would reduce or eliminate fees for unpermitted second units. The City's fees for unpermitted construction continue to be nominal. Most permits submitted to legalize unpermitted second units relate to the conversion of a permitted guesthouse to a second unit. Fees for these permits are relatively low as development impact fees were paid for all guesthouse upon initial construction. The City had an amnesty program that eliminated fees related to non- permitted construction and issued approximately 21 amnesty permits between 2004 and 2008. Since 2014, the City has legalized approximately seven previously unpermitted ADUs. Recent state law addresses unpermitted ADUs. A revised ADU ordinance will address this topic consistent with state law. This program is removed and replaced with an updated program addressing ADU development. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 151 of 216 Atascadero Housing Element G: Accomplishments| 5 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1–14: Continue to maintain Chapter 12 of the Zoning Regulations (Condo Conversion Ordinance) in order to reduce the impacts of condo conversions on lower cost rental housing. Preserving lower cost rental housing is an important component of the City’s affordable housing strategy. This program will remain in the Housing Element. Program 1.1–15: Continue to work with non-profit agencies, such as the County Housing Authority, Habitat for Humanity, the San Luis Obispo County Housing Trust Fund and Peoples’ Self-Help Housing, to preserve existing affordable housing and to pursue funding for new units for extremely low-, very low-, low-, and moderate-income families. Staff has worked with Peoples’ Self-Help Housing and produced 34 affordable housing units (Atalaya Street development – 24 homes 2014/2015, Triangle parcel – 11 units 2017) and worked with Corporation for a Better Housing to produce 60 very low- and low-income units since 2014. The City continues to work with non-profit organizations to provide opportunities for extremely low-, very low-, low-, and moderate-income families. The City utilizes funds from the inclusionary housing fund to assist with these projects. This program is an important component of the City’s affordable housing strategy and will remain. Program 1.1–16: Continue to encourage developers to work with agencies such as the California Housing Finance Authority (CHFA) and the Department of Housing and Urban Development (HUD) to obtain loans for development of new multi-family rental housing for low income households. This will be accomplished by working with appropriate non-profit organizations, such as People’s Self Help Housing and the San Luis Obispo County Housing Trust Fund to identify opportunities. Staff has worked with various affordable housing developers to produce affordable housing. The City continues to work with non-profit organizations to provide opportunities for extremely low-, very low-, low-, and moderate-income families. The City provides necessary assistance in completing applications for funds and utilizes funds from the City’s inclusionary housing fund to assist with these projects. This program is an important component of the City’s affordable housing strategy and will remain. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 152 of 216 Atascadero Housing Element 6 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1–17: Continue to contract with the San Luis Obispo Housing Authority for administration of the Section 8 housing voucher program. The City utilizes this relationship for program implementation and income verifications, and will apply for additional Section 8 vouchers, as appropriate. The City continues its contract with the San Luis Obispo Housing Agency for the Housing Choice Voucher program (Section 8). The Housing Choice Voucher program (Section 8) is an important affordable housing resource for City residents and will remain. Program 1.1–18: Amend the Zoning Regulations to allow a waiver of the two-story height limit in the RMF Zone through the Minor Use Permit process. This option applies to projects that are not using the Planned Development option. Staff has yet to commence this ordinance. This will be reviewed and carry over into next housing element cycle. Currently, height waivers are processed with a Minor CUP. A modified version of this program is included in the Housing Element. Program 1.1–19: To encourage and facilitate development of a variety of housing types, the City should consider amending the Zoning Regulations to establish standards, policies, and procedures for efficiency or micro detached units consistent with the California Building Code. The ordinance should provide a definition of efficiency or micro detached unit as a single habitable living unit, separate from and not including a single-room occupancy unit. The building code was updated to include minimum standards for efficiency units. Facilitating residential development of a variety of housing types is an important City goal. The City is considering objective design standards that encourage a variety of housing types and limiting the size of residential units on multi-family zoned properties to encourage units that are affordable by design. This program is removed and is replaced with a program addressing objective design standards. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 153 of 216 Atascadero Housing Element G: Accomplishments| 7 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1–20: To reduce constraints to multi-family housing production the City will amend the Zoning Regulations to modify Conditional Use Permit requirements for multi-family housing. A CUP will be required only for multi-family projects greater than 50 units. This will not affect the ‘by right’ approval of multi-family projects in the RMF-24 zone, which are not subject to a CUP or a Specific Plan. The City will periodically evaluate the approval process for projects requiring a CUP and monitor the impact the requirement has on project certainty, cost, and approval time. Staff has yet to commence this ordinance. Consideration of amending the Conditional Use Permit requirements for multi- family housing will occur during the upcoming Housing Element planning period. This approach does not currently affect the City’s ability to meet the RHNA for the current planning period as the City has eliminated the CUP requirement for RMF-24 properties identified in the Housing Element. This program will remain. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 154 of 216 Atascadero Housing Element 8 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 1.1–21: The housing needs of persons with disabilities, including persons with developmental disabilities are typically not specifically addressed by Title 9 Regulations. The housing needs of persons with disabilities, in addition to basic affordability, range from slightly modifying existing units to requiring a varying range of supportive housing facilities. In order to assist in the housing needs for persons with Developmental Disabilities, the City will implement the following programs: • The City shall seek State and Federal monies, as funding becomes available, in support of housing construction and rehabilitation targeted for persons with disabilities, including persons with developmental disabilities. • The City shall provide regulatory incentives, such as expedited permit processing and reduced fee, to projects targeted for persons with disabilities, including persons with developmental disabilities. • The City shall work with local organizations such as the Tri- Counties Regional Center and Transitions Mental Health Association to implement an education and outreach program informing families within the City of housing and services available for persons with disabilities, including developmental disabilities. The program will include the development of an informational brochure available on the City’s website or at City Hall. The City works diligently to identify grant and other funding opportunities to support housing rehabilitation. The City is also in contact with multiple non-profit organizations and makes available to them pre-planning and other services to streamline these types of projects. This program will remain. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 155 of 216 Atascadero Housing Element G: Accomplishments| 9 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 2.1–1: As new projects, code enforcement actions, and other opportunities arise, the City will investigate ways to meet its housing needs through rehabilitation and preservation of existing units (see also Program 4.3.3 for potential rehabilitation funding). Utilize code enforcement to identify housing maintenance issues and expedite rehabilitation of substandard and deteriorating housing by offering technical assistance to homeowners and occupants. While this is on-going, the City lost its primary funding tool when the RDA was dissolved. The City will continue to find ways to rehabilitate structures. City staff will be exploring block grants and other funding mechanisms to achieve this goal. Housing maintenance and rehabilitation is an important City goal and as such, this program remains in the Housing Element with modified objectives. Program 2.1–2: Continue to participate in federal grant programs, such as Community Development Block Grants (CDBG), to obtain loans and/or grants for housing rehabilitation. Apply an appropriate amount of the City’s annual share of CDBG funds toward rehabilitation of existing housing units The City will continue to participate in obtaining these funds and will seek how to gain additional grants with the loss of the RDA. This program remains. Program 2.1–3: Continue to maintain the sliding density scale for sloped lots in the Zoning Regulations. The City uses a sliding scale of density for sloped lots and plans to continue this approach. Density adjustments by slope are codified in the City’s Zoning Regulations. This program is implemented and as such is removed from the Housing Element. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 156 of 216 Atascadero Housing Element 10 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 2.1–4: The City shall continue to monitor the status of subsidized affordable projects, rental projects, and mobile homes in the City and provide technical and financial assistance, when possible, to ensure long-term affordability. This will involve contacting owner/operators of subsided projects annually to determine the status of the units and their potential to convert to market- rate. If projects are at-risk, the City will maintain contact with local organizations and housing providers who may have an interest in acquiring at-risk units, and, when feasible, keep track of and apply for funding opportunities to preserve at- risk units, and assist other organizations in applying for funding to acquire at-risk units. Based on City records and information from the California Housing Partnership Corporation, in the next 10 years (2013- 2023) no assisted housing developments in Atascadero will be at risk of losing affordability. City staff continues to monitor the status of affordable housing rental units and for-sale units in partnership with the SLO County Housing Authority. An updated version of this program remains in the Housing Element, as preservation of affordable housing is an important goal for the City. Program 2.2–1: Continue to implement the Historic Site (HS) overlay zone to help preserve and protect historic Colony homes. The City will continue to maintain this overlay zone to preserve and protect historic colony homes. This program will remain in the Housing Element, as preservation of historic homes is an important City goal. Program 2.2–2: Continue to maintain a GIS based map of historic buildings and sites. The City continues to maintain GIS data regarding historic buildings and sites. This program will remain in the Housing Element and has been consolidate into a single program addressing historic home preservation. Program 3.1–1: Promote environmentally sustainable building practices that provide cost savings to homeowners and developers City staff continues to work with developers and homeowners to avoid environmental impacts and promote sustainable building practices. This program will remain in the Housing Element as part of a comprehensive energy conservation program. Program 3.1–2: Make available in the Community Development Department brochures from PG&E and others that detail energy conservation measures for new and existing buildings. In partnership with PG&E and San Luis Obispo Green Build, the City provide brochures available to homeowners that detail energy conservation. This program will remain in the Housing Element as part of a comprehensive energy conservation program. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 157 of 216 Atascadero Housing Element G: Accomplishments| 11 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 3.1- 3: Continue to strictly enforce the State energy standards of Title 24. The City's Building Department continues to enforce Title 24 requirements upon review of building plans that require energy reports. This program will remain in the Housing Element as part of a comprehensive energy conservation program. Program 3.1- 4: Enhance partnerships with Solar Providers for installation of PV panels and other alternative electrical services for low-income households. The City will continue to partner with non-profits by providing housing lists and affordable unit locations to assist in targeting these income groups. Recent changes to state law require all newly constructed homes to be powered by solar power. This program will remain in the Housing Element as part of a comprehensive energy conservation program. Program 4.1–1: Cooperate with non-profit groups and local religious organizations to allow the temporary use of churches as homeless shelters. The City continues to encourage local churches to provide temporary shelters for the homeless population. The City adopted Appendix O for emergency shelters during the latest Building Code Update cycle. A local declaration of a Shelter Crisis requires that the City suspend the typical building code standards to the extent that strict compliance would hinder or prevent the mitigation effects of the shelter crisis. The State developed Appendix O as a way of establishing certain minimum standards that must remain in effect for temporary or permanent structures during the declared crisis period. This program will remain in the Housing Element. Program 4.1–2: Continue to support local motel voucher programs for temporarily displaced and extremely low-income persons. The motel voucher program is funded through the City’s CDBG funding. Motel vouchers are available to aid residents experiencing emergency situations, such as a house fire, in finding temporary housing. The City works with non- profit organizations (such as Loaves and Fishes) to aid the residents in need and provide technical support for the motel voucher program. The City will continue to work with local non-profits and obtain CDBG grant funding for this program. This program will remain in the Housing Element and will be consolidated into a single program addressing homeless resources. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 158 of 216 Atascadero Housing Element 12 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 4.1–3: Continue to allow small (6 or fewer) group housing (residential care facilities) by right in all residential zones and large (7 or more) residential care facilities in the Residential Multi Family (RMF) zone. The City should also consider allowing large residential care facilities by right in additional residential, commercial, public, and/or industrial zones, such as LSFX and RSFX zones, where sewer is available. The City continues to support proper permitting of group housing in accordance with state law. Residential care facilities serving six or fewer residents (small) are permitted by right in all residential zones. Residential care facilities serving more than six residents (large) are conditionally permitted in most residential zones. This program has been implemented and is removed from the Housing Element. Program 4.1–4: Consider amending the Zoning Regulations to expand the Emergency Shelter (ES) Overlay Zone to other appropriate properties, subject to the same or similar, as appropriate, locational and operational criteria as outlined in the Zoning Regulations. City staff will continue to monitor the City's homeless shelter for consistency with state housing policy. This program is included in the Housing Element with an expanded scope to evaluate the Emergency Shelter (ES) Overlay Zone for continued compliance with all applicable state laws. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 159 of 216 Atascadero Housing Element G: Accomplishments| 13 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 4.1–5: Continue to provide information and complaint referral services for those persons who believe they have been denied access to housing because of their race, religion, sex, marital status, ancestry, national origin, color, or disability, family status, sexual orientation, source of income, or political affiliation. The City will educate Community Development Department staff on how to respond to complaints received regarding potential claims of housing discrimination. Staff will be trained to provide the person with an informational handout detailing the process of reporting and filing a claim through the California Department of Fair Employment and Housing. The staff will notify the City Manager and the City Attorney’s office of the intent to file a claim and will be available to provide assistance to the person filing a claim, as needed. Information on Fair Housing law and how to file a claim will also be made available on the City’s website and at the Community Development Housing discrimination information is provided at City Hall. Fair housing is an important issue to the City, and this program will remain in the Housing Element. An additional program to affirmatively further fair housing has been added. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 160 of 216 Atascadero Housing Element 14 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 4.1–6: The City will amend the Zoning Regulations to ensure that permit processing procedures for farmworker housing do not conflict with Health and Safety Code Sections 17021.5, which states that farmworker housing for six or fewer employees should be “deemed a single-family structure with a residential land use designation”, and 17021.6 which states that for "employee housing consisting of no more than 36 beds in a group quarters or 12 units or spaces designed for use by a single- family or household...no conditional use permit, zoning variance, or other zoning clearance shall be required of employee housing of this employee housing that is not required of any other agricultural activity in the same zone”. This was completed as a part of the Land Use definition update in 2017. This program has been implemented and removed from the Housing Element. Program 4.2–1: Continue to ensure full compliance with the California Disability Guidelines and enforce the complementary provisions of the Uniform Building Code. The Zoning Regulations will be evaluated on an ongoing basis and amended as necessary, to ensure ADA compliance and remove governmental constraints on the production of housing for persons with disabilities. City staff continues to comply with ADA standards for new occupancy and change of occupancy building projects. ADA compliance is a routine function of the City’s planning and development review and as such, this program is not needed in the Housing Element. This program has been removed. Program 4.3–1: Adopt a policy to determine allocation of the City Affordable Housing In-Lieu funds to support the creation of new affordable housing units in Atascadero. This program has not yet been implemented but remains in the Housing Element as a single, consolidated program addressing funding sources for affordable and special needs housing. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 161 of 216 Atascadero Housing Element G: Accomplishments| 15 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 4.3–2: Work with nonprofits and identify funding to address the housing needs of extremely low-income households and totally and permanently disabled persons. RDA funds are no longer available since the agency no longer exists. City staff continues to work with non-profits for any grant funding opportunities. This program will remain in the Housing Element as a single, consolidated program addressing funding sources for affordable and special needs housing. Program 5.1–1: Continue to facilitate understanding of the impacts of economic issues, employment, and growth on housing needs among financial, real estate, and development professionals in formalized settings, such as the Economic Round Table. City staff attend economic roundtables and other events as continuing education of these impacts. This program will remain in the Housing Element as part of a housing finance constraints program to encourage identification of non- governmental constraints and to facilitate production of affordable housing. Program 5.1–2: Continue to work with development community to identify and mitigate any constraints on access to financing for multi-family development. The City will conduct regular stakeholder meetings with members of the development community including representatives from local non-profit housing organizations, developers, and real estate brokers to solicit feedback. City Staff continues to work with developers, key stakeholders, and property owners on overcoming constraints in project design to help facilitate financing. This program will remain. Program 5.2–1: Continue to monitor and evaluate development standards and advances in housing construction methods. As City staff identifies issues with the Municipal Code and advance construction methods, the City will amend the code as necessary. This program will remain in the Housing Element to encourage identification and possible mitigation of non-governmental constraints. Program 5.2–2: Continue to track the affordability of housing projects and progress toward meeting regional housing needs. Reports should be provided semi- annually to the Planning Commission and annually to the City Council and the California Department of Housing and Community Development. The City tracks all housing projects and provides status updates to both the Council and Planning Commission. This program is folded into an adequate sites program addressing housing resources to meet the 2018-2028 RHNA. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 162 of 216 Atascadero Housing Element 16 | G: Accomplishments Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 6.1–1: Continue to consolidate all actions relating to a specific project on the same Council or Commission agenda Staff continues to consolidate all actions relating to a specific project on the same Council or Commission agenda for ease of tracking and to reduce the project review timeframe. This program will remain as part of a larger project streamlining program. Program 6.1 – 2: Continue to review minor project modifications through the Design Review Committee and more substantial changes through a conditional use process. Staff continues to use the DRC to make determinations on minor project changes. This program will remain as part of a larger project streamlining program. Program 6.1–3: Continue to review and revise local review procedures to streamline the process The City created the Design Review Committee in 2010 to help with project streamlining and review. The DRC has been helpful in working out issues that normally the Planning Commission would have addressed. This program will remain in the Housing Element as part of a larger project streamlining program. Program 6.1–4: Continue to maintain pre-approved stock development plans to streamline the plan check process. Stock plans are available for projects that include the construction of three or more of the same unit. This process allows for cost and time savings through the process. The City is also participating in regional efforts to create and make available stock development plans for Accessory Dwelling Units (ADUs). This program will remain in the Housing Element as part of a larger project streamlining program. Program 6.1–5: Provide pre-application technical assistance to affordable housing providers to determine project feasibility and address zoning compliance issues in the most cost- effective and expeditious manner possible. The City provides pre-application and technical assistance to all projects when requested. This program is an important tool for facilitating development of affordable housing and will remain. Program 6.1–6: Provide, when possible, developer incentives such as expedited permit processing and fee deferrals for units that are affordable to lower income households. Atascadero will promote these incentives to developers on the City’s website (http://www.atascadero.org) and during the application process. The City's process streamlining is already expediting projects. Developers can defer development impact fees until final occupancy. This program is an important tool for facilitating development of affordable housing and will remain in the Housing Element and folded into several programs related to facilitating housing production. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 163 of 216 Atascadero Housing Element G: Accomplishments| 17 Table G.1: 2014-2019 Program Accomplishments 2014-2019 Housing Element Program Program Performance and Continued Appropriateness Program 6.1–7: The City should consider amending the Zoning Regulations to allow single-room occupancy units (SROs) by right in the Residential Multi- Family (RMF) zone The City will review and if needed revise the SRO siting regulations as part of a future Zoning Regulations update. This program will remain in the Housing Element. Program 6.1–8: To encourage affordability by design, the City shall modify the Capital Facility Fee schedule to index fees based on size of unit, providing lower rates for small units. Indexed rate shall apply to apartments and second units. By 2015 The City has solicited a proposal for completion of Capital Facility Fee study; work is underway (Spring 2020). This program remains in the Housing Element and is folded into a single Capital Facility Fee program. Program 6.1–9: The City shall continue to monitor impact fees and the Capital Facility Fee schedule to identify barriers to housing development, particularly affordable units. If constraints are identified, the City shall revise the fee schedule accordingly. The City has solicited a proposal for completion of this effort. The consultant will look at proposals for encouraging residential units that are affordable-by-design. This program remains in the Housing Element and is folded into a single Capital Facility Fee program. Program 6.2.1 1: Following amendment of the General Plan Conservation and Safety Elements to comply with AB 162 related to floodplain mapping, the City will amend the Housing Element, if needed, for consistency. By 2023 This program has been completed as a part of the 2014-2019 Housing Element update. This program has been implemented and removed. Table G.2 summarizes the quantified objectives contained for the 2014-2019 Housing Element and compares the City’s progress toward fulfilling these objectives. The City recognizes that it had limited resources to address the varied affordable housing needs in the community. As part of the 2014-2019 Housing Element, the City established a set of quantified objectives for housing construction, rehabilitation, and preservation. The City made significant progress towards the construction and conservation goal. The City’s rehabilitation goals, however, fell short due to the loss of its primary rehabilitation funding tool when the RDA was dissolved. The City will continue to find ways to rehabilitate structures. City staff will be exploring alternative funding mechanisms to achieve this goal.  The construction objective represents the City’s remaining RHNA for the 2014-2019 planning period.  The rehabilitation objective represents objectives for code enforcement rehabilitation as well as participation in rehabilitation grants. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 164 of 216 Atascadero Housing Element 18 | G: Accomplishments  The conservation objectives represent conservation and expansion of existing affordable housing. Table G.2: Summary of 2014-2019 Quantified Objectives and Progress Objectives Income Levels Total Extremely Low Very Low Low Moderate Above Moderate Construction Objectives Goal 49 49 62 69 164 393 Progress 0 (0%) 48 (98%) 28(45%) 178(258%) 308(188%) 562 Rehabilitation Objectives Goal 7 13 55 55 0 130 Progress -- -- -- -- -- 0 Conservation Objectives Goal 3 2 15 5 -- 25 Progress 71 (355%) -- -- 71 ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 165 of 216 Atascadero Housing Element X: Appendix| 1 Appendix A Public Outreach Contact List ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 166 of 216 Atascadero Housing Element 2 | X: Appendix Organization/Name Contact Information Atascadero Chamber of Commerce 805-466-2044 info@atascaderochamber.org Atascadero Association of Realtors AAORstaff@AtascaderoRealtors.com (805) 466-9200 Atascadero Community Link (805)466-5404 http://www.linkslo.org/ Atascadero Mutual Water Company (AMWC), John Niel lhalderman@amwc.us Atascadero Unified School District 805-462-4200 California Department of Housing and Community Development (HCD) (Tom Brinkhuis) 916.263.6651 Tom.Brinkhuis@hcd.ca.gov California Department of Transportation (Caltrans) Info-d5@dot.ca.gov (805) 549-3111 Central Coast Commission for Senior Citizens (805) 925-9554 seniors@KCBX.net City of San Luis Obispo, John F Rickenbach JFRickenbach@aol.com City of Paso Robles, Katie Banister KBanister@prcity.com Community Action Partnership, San Luis Obispo (CAPSLO) (805) 544-4355 CAPSLO hotline@capslo.org Community Church of Atascadero (Rev. Heather Branton) ccauccpastor@gmail.com Corporation for Better Housing (818) 905-2430 maria@corpoffices.org Darren Thomas, Adco Design Inc. darren@adco.biz El Camino Homeless Organization (ECHO) (805) 462-3663 wlewis@echoshelter.org Federal Emergency Management Agency Gregor.blackburn@fema.dhs.gov Habitat for Humanity info@hfhsloco.org 805-782-0687 Housing Authority San Luis Obispo (HASLO) (805) 543-4478 info@haslo.org nguzman@haslo.org Homeless Services Oversight Council (HSOC) San Luis Obispo County SS_HomelessServices@co.slo.ca.us Housing Trust Fund, San Luis Obispo County info@slochtf.org Independent Living Resource Center, Inc. (ILRC), Jerry Mihaic info@ilrc-trico.org JMIHAIC@ILRC-TRICO.org Local Agency Formation Commission (LAFCO) DChurch@SLOLAFCO.com 805.781.5795 North County Connection, Susan Warren 805.462.8600 INFO@NCCSLO.ORG info@northcountyconnection.com North County Women’s Shelter 805-461-1338 Northern Chumash Tribe Mona Olivas Tucker, Chairwoman olivas.mona@gmail.com ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 167 of 216 Atascadero Housing Element X: Appendix| 3 Organization/Name Contact Information People’s Self Help Housing (805) 781-3088 info@pshhc.org sherylf@pshhc.org morgenb@pshhc.org Salinan Tribe of Monterey and San Luis Obispo Counties, Fredrick Segobia info@salinantribe.com Salvation Army (805) 544-2401 Elaine.Mansoor@usw.salvationarmy.org San Luis Obispo Council of Governments (SLOCOG), Sara Sanders ssanders@slocog.com pio@slocog.org JDinunzio@slocog.org San Luis Obispo County Air Pollution Control District (APCD) (805) 781-5912 info@slocleanair.org San Luis Obispo County Housing Trust Fund (SLOHTF) (805) 543-5970 info@slochtf.org San Luis Obispo County Planning and Building (805) 781-5600 chanh@co.slo.ca.us asingewalg@co.slo.ca.us lhoffman@co.slo.ca.us SLOCo Yimby, Krista Jeffries slocoyimby@gmail.com Southern California Gas Company (SoCalGas) dceja@semprautilities.com Transitions Mental Health Association (THMA) (805) 540-6500 info@t-mha.org Tri-Counties Regional Center (805) 461-7402 Tri-counties@tri-counties.org Transitional Food and Shelter 805-466-5404 jwilshusen@atascadero.org Loaves and Fishes contact@atascaderoloaves.org 805-461-1504 Independent Living Resource Center (805) 462-1162 Atascadero Land Preservation Society (ALPS) info@supportalps.org Developers/Realtors/Consultants/Brokers/Misc. AM Roofing am.roofing@yahoo.com Cal Coastal Properties (805) 242-6202 info@calcoastalslo.com Century 21 Hometown Realty 805.461.1121 bonniechomes@gmail.com Dawn.Espana@c21home.com richardshannonc21@gmail.com Economic Vitality Corporation info@sloevc.org (805) 788-2012 Home Builder’s Association of the Central Coast (805) 546-0418 LHatcher@hbacc.org John Rickenbach Consultants JFRickenbach@aol.com (805) 610-1109 ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 168 of 216 Atascadero Housing Element 4 | X: Appendix Organization/Name Contact Information The Laughlin Company info@laughlincompany.com Many Figs Holdings and Development, Scott Newton scott@manyfigs.com Midland Pacific Homes jmoresco@gmail.com Placeworks asinsheimer@placeworks.com Planning Solutions, Pam Jardini planningsolutions@charter.net Roberts Engineering, Tim Roberts tim@robertsenginc.com RRM info@rrmdesign.com (805) 543-1794 Semmes & Co. Builders, Inc. (805) 466-6737 info@semmesco.com Jessicas@semmesco.com Shea Homes Customerservice@sheahomes.com SLO Plastering keith@sloplastering.com Sphere Real Estate marty@spherepartnersre.com Transitional Food and Shelter, Jan Maitzen maitzenj@gmail.com Vivian Hanover Ventures Vivian@vhvrealestate.com Z Villages zvillagesmanagement@gmail.com mike@zvillages.com max@zvillages.com jordan@zvillages.com Eric Cleveland PO Box 552 Santa Margarita, CA 93453 ercleve@msn.com Sean Knoph seatomur@sbcglobal.net David Athey david_athey@sbcglobal.net Mike Frederick PO Box 573 Atascadero, CA 93423 eagle1@mfpaving.com Kent Williams kentwilliams9255@gmail.com Liza Neville Olson sowyablue1@juno.com Myrna Wood mybizzwood@gmail.com Scott Newton, Property Owner scott@manyfigs.com Steve Petrowsky steve@petrowsky.com ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 1A Page 169 of 216 STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT DIVISION OF HOUSING POLICY DEVELOPMENT 2020 W. El Camino Avenue, Suite 500 Sacramento, CA 95833 (916) 263-2911 / FAX (916) 263-7453 www.hcd.ca.gov September 21, 2020 Phil Dunsmore, Director Community Development Department City of Atascadero 6500 Palm Avenue Atascadero, CA 93422 Dear Phil Dunsmore: RE: Review of the City of Atascadero’s 6th Cycle (2020-2028) Draft Housing Element Thank you for submitting the City of Atascadero’s (City) draft housing element received for review on July 23, 2020 along with revisions received on September 14 and 21, 2020. Pursuant to Government Code section 65585, subdivision (b), the California Department of Housing and Community Development (HCD) is reporting the results of its review. The draft element, incorporating the revisions submitted, meets the statutory requirements of State Housing Element Law. The housing element will comply with State Housing Element Law (Article 10.6 of the Gov. Code) when it is adopted, submitted to, and approved by HCD, in accordance with Government Code section 65585, subdivision (g). To remain on an eight-year planning cycle, the City must adopt its housing element within 120 calendar days from the statutory due date of December 31, 2020 for San Luis Obispo Council of Governments localities. If adopted after this date, Government Code section 65588, subdivision (e)(4), requires the housing element be revised every four years until adopting at least two consecutive revisions by the statutory deadline. For more information on housing element adoption requirements, please visit our website at: http://www.hcd.ca.gov/community-development/housing-element/housing- element-memos/docs/sb375_final100413.pdf. Public participation in the development, adoption and implementation of the housing element is essential to effective housing planning. Throughout the housing element process, the City must continue to engage the community, including organizations that represent lower-income and special needs households, by making information regularly available while considering and incorporating comments where appropriate. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 2 Page 170 of 216 Phil Dunsmore, Director Page 2 Several federal, state, and regional funding programs consider housing element compliance as an eligibility or ranking criteria. For example, the CalTrans Senate Bill (SB) 1 Sustainable Communities grant; the Strategic Growth Council and HCD’s Affordable Housing and Sustainable Communities programs; and HCD’s Permanent Local Housing Allocation consider housing element compliance and/or annual reporting requirements pursuant to Government Code section 65400. With a compliant housing element, the City will meet housing element requirements for these and other funding sources. H CD appreciates the hard work and dedication the City’s housing element team and looks forward to receiving the adopted housing element. If you have any questions or need additional technical assistance, please contact DC Nava rrette , of our staff, at David.Navarrette@hcd.ca.gov. Sincerely, Shannan West Land Use & Planning Unit Chief ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 2 Page 171 of 216 9/3/2020 MIG, Inc. Mail - FW: housing element https://mail.google.com/mail/u/0?ik=cd7c8942a8&view=pt&search=all&permthid=thread-f%3A1676848914603480312&simpl=msg-f%3A16768489146…1/4 Genevieve Sharrow <genevieves@migcom.com>FW: housing element1 messageKelly Gleason <kgleason@atascadero.org>Thu, Sep 3, 2020 at 2:15 PMTo: Genevieve Sharrow <genevieves@migcom.com> Kelly GleasonSenior Planner | City of Atascadero 805.470.3446 | kgleason@atascadero.org Due to restricons under the County of San Luis Obispo Local Emergency Order and Regulaon NO. 4 COVID 19, City Hall is temporarily closed to the public. Essenal services are sll in operaon. Community Development staff will be available by phone (805) 461-5000, email, and by appointment only for front counter services. We will respond as soon as possible to your request. Thank you for your paence! From: Phil Dunsmore <pdunsmore@atascadero.org> Sent: Tuesday, August 18, 2020 10:02 AM To: Kelly Gleason <kgleason@atascadero.org> Subject: FW: housing element Phil Dunsmore, Community Development Director CITY OF ATASCADERO Community Development Dept. 6500 Palma Ave., Atascadero CA 93422 Direct (805) 470-3488 | Office (805) 461-5035 Direct Fax: (805) 470-3489 | Office Fax (805) 461-7612 www.atascadero.org Dedicated to Atascadero’s character and safety by helping people plan and build quality projects Due to restricons under the County of San Luis Obispo Local Emergency Order, City Hall connues to remain temporarily closed to the public. Essenal services are sll in operaon and we are processing permits and performing ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 3 Page 172 of 216 9/3/2020 MIG, Inc. Mail - FW: housing element https://mail.google.com/mail/u/0?ik=cd7c8942a8&view=pt&search=all&permthid=thread-f%3A1676848914603480312&simpl=msg-f%3A16768489146…2/4 inspecons. Community Development staff will be available by phone (805) 461-5000 and email, and will respond assoon as possible to your request. From: Max Zappas <max@zvillages.com> Sent: Tuesday, July 28, 2020 5:27 PMTo: Susan Funk <sfunk@atascadero.org>; Charles Bourbeau <cbourbeau@atascadero.org>; Heather Moreno<hmoreno@atascadero.org>; Phil Dunsmore <pdunsmore@atascadero.org>; Heather Newsom<hnewsom@atascadero.org>; Roberta Fonzi <rfonzi@atascadero.org>; Michael Zappas<mike@zvillages.com>; Zoe Zappas <zoe@zvillages.com>; Rachelle Rickard <rrickard@atascadero.org>Subject: housing element Dear Mayor, City Council, and Community Development Director, Below are my thoughts and recommendations upon reviewing the draft housing element. I hope you will give thought and consideration to this input, it is very hard to deliver housing as it is in California given all of the environmental constraints and high construction costs but I think the following 5 points could really help move the needle in our wonderful community. Thank you in advance for your time and consideration, I would love to sit down or speak with each of you individually, please feel free to reach out if you have any questions or want to gain more insight from a developer's perspective. 1. In section B "Housing Plan" there is a series of goals and policies. Policy 2B is in regards to the inclusionary housing ordinance. Inclusionary Housing Ordinances are almost always counterproductive and have been proven to make the housing situation worse. I do not think this route should be pursued further than it has been to this point. It also takes a lot of staff time and requires ongoing monitoring expenses etc. Please see additional research findings below: 1. Bento et al. found that inclusionary zoning in California caused prices to increase 2 to 3 percent faster relative to jurisdictions without the policy. They found that affordable housing mandates decreased the rate of single family home starts, but found no effect on multifamily housing supply. They write, “The results are fully consistent with economic theory and demonstrate that inclusionary zoning policies do not come without costs.” 2. Tom Means and Ed Stringham also measured the effects of inclusionary zoning in California. They found that jurisdictions with inclusionary zoning saw their housing supply reduced by 7 percent and prices increased by 20 percent due to the policy. 3. Schuetz et al. studied inclusionary zoning in two markets. In the Boston region, they found that inclusionary zoning rules reduced construction and caused higher house prices, but only during periods of rising prices. In the Bay Area, they found that inclusionary zoning corresponds with higher house prices during periods of rising rent prices, but that it also contributes to lower rent prices during times of falling average prices. They found no relationship between inclusionary zoning and construction in the Bay Area. 2. Policy 2F is in regards to Mixed Use Standards. I believe the mixed use design parameters should be "form based" in a way similar to what Paso uses along Spring street. Horizontal mixed use, at the very least, needs to be handled in a more logical way than the current illogical 50% ground floor policy which was adopted awhile ago. "Form Based" code means that the goal is more to get the building "forms" that are desired for the given zoning areas rather than the particular "use" that is desired. As a city, you are not able to dictate what the market demands and that is why certain lots have remained vacant for so long and will continue to remain vacant if this policy is left in place. Owners and developers need to be able to create housing at the rear of sites to be able to justify the commercial/retail/office that will sit vacant at the front of the projects. As a city, we do, indeed, need that commercial on the thoroughfare frontages but when it sits vacant or there isn't demand then it isn't helpful(it actually draws the other rents in town lower therefore discouraging commercial development even further). However, form based code gets it built and that boosts property taxes, population rings where we need them, and traffic counts where we need them, among other benefits. Our property on Curbaril and Morro Road is a great example. The current council policy of only allowing projects with at least 50% of the ground floor as commercial are not realistic... It would not make sense for the rear of the site to sit vacant as commercial, retail, or office and we will not build there until we can design something that will work. See the vacant retail behind the movie theater as another example, it has never been leased since it was built. The Moresco Plaza is one more example, it is not realistic financially to account for vacancies that last years but that is what those owners have had to endure... They finally leased one of their larger office spaces after having it sit vacant since around 2012 or whenever they finished it... ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 3 Page 173 of 216 9/3/2020 MIG, Inc. Mail - FW: housing element https://mail.google.com/mail/u/0?ik=cd7c8942a8&view=pt&search=all&permthid=thread-f%3A1676848914603480312&simpl=msg-f%3A16768489146…3/4 You know better than I do exactly when that project was finished but if they had been able to focus the office on thefrontage exclusively and finance the project by having residential in the rear, then, there would've been far less time withempty storefronts and those investors would have been paid back way quicker therefore encouraging them to invest morehere rather than run from Atascadero. 3. Policy 3D is in regards to the RMF Zone Height. I think the council should also look at the downtown for heightrestrictions and those should be adjusted as well. The downtown should be our most dense portion of the city andcommercial redevelopment will be easier to accomplish if we can go vertically higher with more residential units. In thesame way, the residential density in the downtown zone should also be the highest. The density per acre should be morein line with SLO, they allow up to 35 units per acre in the downtown zone and, interestingly, in the RMF zone, they mirrorour policy of 20-24 units per acre. The additional 15 units per acre I am proposing will really encourage commercialredevelopment in our downtown. Numerous projects will immediately be financially justified from both a developers and alenders standpoint. Downtown redevelopment is difficult because it often entails assembling multiple parcels and requiresgetting projects that are big enough to justify demolition and longer planning timelines that come with tight urbanredevelopment. The downtown needs to be encouraged to be redeveloped and you don't do that by keeping theresidential density at 20 units per acre, it needs to be up near 35 per acre. However, with higher density comes heightand parking difficulties based on your current codes... which necessitates the need to be able to go higher with theprojects in the downtown and also have more flexible parking requirements. 3 topics here to address in the downtownzones, allow buildings to go higher, allow higher density per acre, and allow lower parking requirements or in lieu fees forparking in the downtown. 4. Program 3E is in regards to small lot subdivisions. Each lot/home needs to have certain parameters met but each lot should be able to be split if the requirements are met. Setbacks, height, parking etc should all be considered but it is unfair to force owners and applicants to create condominium maps, air space condos and all sorts of other onerous work arounds to be able to sell a portion of their lot separately or build on a portion of their lot separately. If there are 2 homes on a lot and they are legitimate from a design standard perspective, the owner should be able to split the lot and put each on their own parcel. We shouldn't have a minimum lot size, that makes no sense in today's world of tiny homes and small lot developments such as San Luis Ranch. This is very important to pass immediately and it will put every property owning resident in Atascadero in a better financial position. It will spur more housing production and it will allow more creativity in adding homes on some of our large lots in Atascadero. 5. In section E: constraints on housing production, number 1 is Governmental Constraints. I think there is nothing more impactful for you all to do than upzoning the downtown to a higher residential density per acre. I touched on this in point 3 above but it is worth revisiting here as well. This section explains the various zones and you will see here that the Downtown zones(DC and DO) both allow residential, but, only up to 20 units an acre... Not even as strong as the RMF zone which allows up to 24 per acre. Again, in SLO it is 35 units per acre in the downtown and this really makes a difference. For example, 5730 el camino real... We had to fight and battle to maximise the site, apply for "superior architecture", and were finally able to gain approval for 5 residential units. Without "superior architecture" we would have only been able to build 4 units. However, if we were allowed to increase our density to a standard of 35 units an acre, add a third floor, the project could be financed immediately. We would have been able to go with 7 units by right and 8 units with superior architecture if the 35 per acre standard was in place. As it is now, lenders will not lend on that project because it is essentially 50% retail and therefore needs to be pre-leased(a signed lease and security deposit in hand before they will even consider lending). Once you tip the scales more towards residential(66% of a project residential as opposed to 50%), things start to pencil out. With La Plaza, we were able to justify the project because the site was on the market for years and it was rather large. We pushed the density as far as we could, allowing 2 floors of residential above(if we could have done 3 floors of residential above the commercial at a standard of 35 units an acre then the project would have been a great success). The project started to look more appealing to banks and financiers than what was previously designed on the site(all commercial) because they know our country, and especially our town, is already over built with commercial/retail. They know residential has little to no risk, all the lenders/banks/financiers care about is risk and retail/commercial was extremely risky prior to the pandemic but is even more risky now. As a city, moving forward in this day and age, we need to focus on increasing our residential density in the downtown because that is the center of our city, residential is the biggest opportunity for growth, and it is what the people in this community need more than almost anything else. If we can get higher traffic counts and population rings in the middle of our city while maintaining some of the lowest cost housing in the county, then it starts to create the kind of demand and environment here where retail and restaurants can actually survive and thrive. Thank you again for your time and consideration, I hope to hear back from you to discuss the housing element further. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 3 Page 174 of 216 9/3/2020 MIG, Inc. Mail - FW: housing element https://mail.google.com/mail/u/0?ik=cd7c8942a8&view=pt&search=all&permthid=thread-f%3A1676848914603480312&simpl=msg-f%3A16768489146…4/4 --Thank you, Max ZappasZ Villages Management & Development6100 El Camino Real Suite Cmax@zvillages.com805-674-4743Con Lic # 1048492RE Lic # 01997012 CONFIDENTIAL COMMUNICATION This electronic mail message and any attachments are intended only for the use of the addressee(s) named above and may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not an intended recipient, or the employee or agent responsible for delivering this e-mail to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you received this e-mail message in error, please immediately notify the sender by replying to this message. ATTENTION: This email originated from outside the City's network. Use caution when opening links and attachments. ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 3 Page 175 of 216 Helping Give Children the Best Possible Start in Life 3220 South Higuera Street ● Suite 232 ● San Luis Obispo ● CA ● 93401-6985 Phone 805-781-4058 ● Fax 805-788-2365 www.first5slo.org , October 9, 2020 Dear Mr. Holder and Staff, First 5 San Luis Obispo County and our partners on the We Are the Care Initiative recognize that a child care crisis exists in San Luis Obispo County. While we pursue a wide variety of steps and measures to address this need, we believe that the Atascadero Housing Element can serve as an additional mechanism to support creative innovation. The Regional Compact has goals to Strengthen Community Quality of Life and Create Balanced Communities, and we believe that access to affordable and quality child care is an essential part of achieving those goals. Recently, the County Planning Commission, at its September 24th meeting, acted based on First 5 recommendations to propose the addition of a new Housing Element program to study ways of integrating child care and senior care into housing. In this same spirit, and upon the review of the Draft City of Atascadero 2021-2028 Housing Element, the We Are the Care Initiative and First 5 recommend the following: Recommendation 1: That Policy 1.3, Policy 2.2, and/or Program 1.E include language to support the provision of affordable on-site child care facilities. Additional innovative practices such as these were presented in 2019 at the Annual League of Cities conference in a session entitled, Promoting the Power of General Plans: A Strategy to Support Early Childhood Development, which encourages cities to incorporate child care and social services into affordable housing. For example, the presence of on-site child care could be folded in as a developer incentive in Program 2.E. In the City’s Housing Needs Assessment, under “Female-Headed Households,” the document acknowledges that “Planning for housing development to serve single-parent families may require on-site childcare facilities.” However, these identified needs are not listed directly in the Draft Housing Element itself. In recognition that single-parent and female-headed households contribute a higher percentage of their income to housing costs, we submit that access to affordable and convenient child care is paramount and should be articulated as such within the Housing Element. Recommendation 2: That Goal HOS1, Goal HOS2, Program 1.C, and/or Program 2.F include the promotion of intergenerational facilities- such as senior centers co-located near or with child care centers. Intergenerational facilities would offer benefits to both the older and younger generations of the city of Atascadero, and represent a creative opportunity to address child care needs and utilize mixed-use land areas. Recommendation 3: In alignment with Regional Compact, Goal 1 (Strengthen Community Quality of Life) we recommend that the Housing Element include additional language that addresses the Commissioners: Bruce Gibson, PhD Chairperson Designated Representative, San Luis Obispo County Board of Supervisors Penny Borenstein, MD Vice-Chairperson Designated Representative, San Luis Obispo County Health Agency James Brescia, EdD Designated Representative, San Luis Obispo County Office of Education Devin Drake Designated Representative, San Luis Obispo County Department of Social Services Erica Ruvalcaba-Heredia, EdD Representative at Large, Center for Family Strengthening Melinda Sokolowski Designated Representative, Child Care Planning Council James Tedford, MD Medical Representative Alison Ventura, PhD Representative at Large, Cal Poly Kinesiology, Public Health Robert Watt Representative at Large, Coast Unified School District (Retired) Executive Director Wendy L. Wendt ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 4 Page 176 of 216 3220 South Higuera Street ● Suite 232 ● San Luis Obispo ● CA ● 93401-6985 Phone 805-781-4058 ● Fax 805-788-2365 www.first5slo.org 2 critical need to maximize outdoor spaces, including those in proximity for the purpose of maximizing outdoor learning environments and play for a range of age groups. Outdoor learning and community play structures build cognitive, physical, social, and sensory skills for children, support quality of life for all living near-by, and can attract the business of family child care providers. Thank you for your continued support in creating a connected community for our children and families. Sincerely, Kris Roudebush First 5 San Luis Obispo County ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 4 Page 177 of 216 October 20, 2020 John Holder City of Atascadero Community Development Department 6500 Palma Avenue Atascadero, CA 93422 Subject: The City of Atascadero’s 2021 -2028 Housing Element Update Draft Dear Mr. Holder : The State of California and Federal Highways Administration designate SLOCOG as the Regional Transportation Planning Agency (RTPA) and the Metropolitan Planning Organization (MPO), respectively, for the region. While SLOCOG does not have permit or regulatory authority for housing ele ment updates, SLOCOG is responsible for developing the Regional Housing Needs Allocation (RHNA) Plan which assigns a share of the region’s future housing need to each jurisdiction in the region. All California cities and counties are required by Government Code (Section 65580-65590) to adopt housing elements as part of their general plans. Unlike the other elements, the Housing Element must be revised and updated to reflect the RHNA Plan. SLOCOG commends Atascadero’s effort in fulfilling state requirements as well as providing such detail on the current and future state of the City’s housing needs. The majority of RHNA Plan objectives were fulfilled through the draft. For example, the RHNA Plan principle of Social Equity was fulfilled through Policies 1.3-1.4, the Regional Cooperation principle was fulfilled through the inclusion of the regional vision for housing, and Fair Housing principle was fulfilled through Policies 5.1-5.4 . SLOCOG is encouraged by the inclusion of these policies along with the programs related to increasing affordable housing within the City for example program 2.C, “Affordable Housing In -Lieu funds ” (p.6). SLOCOG was impressed with the amount of outreach and quality of community engagement over the last year. It is evident that public comment went into the crafting of the updated goals, policies, and programs. Thank you for the opportunity to provide input. The document provided insight into the housing challenges the City faces but also tangible ways to work with and around those challenges to fulfill state requirements. We wish Atascadero continued success in moving the Housing Element Update forward. If you have any questions, please feel free to contact me at (805) 597 -8052 or ssanders@slocog.org. Sincerely, Sara Sanders, Transportation Planner San Luis Obispo Council of Governments ITEM NUMBER: B-1 DATE: 11/10/20 ATTACHMENT: 5 Page 178 of 216 ITEM NUMBER: C-1 DATE: 11/10/20 Atascadero City Council Staff Report – Public Works Department Atascadero Mall Plaza Construction Award RECOMMENDATIONS: Council: 1. Discuss and direct staff on desired design revisions for the Atascadero Mall Plaza Project. 2. Authorize the City Manager to execute a contract with Kirk Construction in an amount not to exceed $819,344.50 for the construction of the Atascadero Mall Plaza Project subject to project design revisions as identified by Council. 3. Authorize the Director of Administrative Services to appropriate up to an additional $616,700 in Public Facilities Fees Fund balance for FY20/21 toward the Atascadero Mall Plaza project subject to project design revisions as identified by Council. DISCUSSION: Background Currently, the Atascadero downtown area is in the midst of a transformation, led by the construction of the La Plaza development and the conceptual approval of the downtown infrastructure enhancement plan . One original condition of approval for the La Plaza development was for the construction of a plaza area adjacent to the south end of the La Plaza project within the Atascadero Mall right-of-way and City parcel formerly occupied by the Main Street Building. The project condition stated: The public plaza is expected to be a versatile park-like space that can be used for events. The applicant shall work with the City on the final design of proposed public plaza within the Atascadero Avenue (Mall). The draft and final design shall be approved by the Community Development Director and shall include the following provisions: a. Design elements such as low decorative fencing to guide pedestrians towards the signalized intersection b. Removable fencing to allow maximum use of the roadway and the plaza if the road is closed during events and happenings Page 179 of 216 ITEM NUMBER: C-1 DATE: 11/10/20 c. Provisions to accommodate food trucks, electrical needs, lighting, emergency access and other elements necessary for events and happenings d. Landscaping as approved by the Public Works Director/Community Development Director e. The design shall not incorporate a curb, gutter or sharp grade change between the roadway and plaza f. The applicant may revise items a. – e. with the advance written approval of the City Manager or designee thereof By March 2019, it became readily apparent that the cost of c onstructing the Plaza would exceed the amount of fees credits that the La Plaza project could expect to receive and thus was an impediment to development of the La Plaza. On March 26, 2019 the City Council reviewed two park concept plans, and approved having the City move forward with a park concept that included two large pergolas. In June 2019, the City Council approved $475,000 in Park Impact Fee Funds to fund the construction of the Plaza. The Atascadero Mall Plaza will be a new City public space that will provide seating, landscaping, shade, and a place for public events. Staff began work on this project in July 2019 with a design team consisting of Walsh Engineering, Casey Patterson (landscape architect), Smith Structural Group and Thoma Electric. Since that time, the City has worked with the design team to refine the site layout and facilities to meet multiple user needs and provide as much flexibility as possible. Concept plans were initially developed and refined, followed by construction pl ans and specifications for bid. Design Analysis The Atascadero Mall Plaza is envisioned as a multi-use public space with an open- walled shade structure that closely ties into new La Plaza improvements as well as the downtown El Camino Real corridor. Given the varied space needs, a project design advisory team comprised of members from various City departments was created. The advisory team provided input and feedback to the design team to ensure that the facility design provides a space to meet the various needs to which it will serve while providing flexibility for future uses. The following essential design requirements for the Atascadero Mall Plaza were identified during the preliminary design process: 1. Maintain visibility of City Hall from the Highway 101 corridor. 2. Maintain visibility through the site and to the tunnel to reduce transient or criminal activity. 3. Provide expansive shade area. 4. Provide a significant concrete hardscape area that can be used for events and/or outdoor dining. 5. Integrate seating and protection from vehicles entering KLEMS and La Rosa’s. 6. Integrate electrical service for built-in and string lighting and outlets while providing pole lights matching downtown lighting standards. 7. Provide low maintenance landscaping and irrigation improvements. 8. Meet all Code requirements. Page 180 of 216 ITEM NUMBER: C-1 DATE: 11/10/20 Given the design parameters, staff evaluated multiple draft plans of the plaza, while consulting with the La Plaza team and surrounding property owners, prior to developing two design scenarios: one with a pergola and one with no pergola. These two design scenarios were reviewed and discussed with Council at their March 26, 2019 regular meeting, along with various pros and cons of each . Council directed staff to proceed with the design scenario that included a pergo la structure. Staff proceeded with the preferred design scenario and prepared construction plans and specifications for a public bidding. The final construction p lans showing the proposed facility are included as Attachment 3. Bid Analysis The project was publicly bid starting August 7, 2020 for a minimum of 30 days in accordance with State Contracting Laws and the City’s Purchasing Policy. A public bid opening was held on September 10, 2020 and nine bids were received ranging from $819,344.50 to $1,384,106, with the low bid received by Kirk Construction of Atascadero. The bid proposals were reviewed for mathematical accuracy and compliance with project bidding requirements, and the City Engineer determined that Kirk Construction’s bid proposal was responsive and responsible per the bidding requirements. Given the significant additional costs above budget, staff prepared a bid analysis spreadsheet including all bid items costs from all contractors. This exercise was completed to determine if a small number of bid items were disproportionately affecting the bid, and if there were potential modifications or clarifications that could be made to significantly lower costs if rebid. The Atascadero Mall Plaza project has been planned and budgeted within the 2019- 2021 budget and includes $475,000 in funding from the Parkland Facilities Fees Fund. There has been an estimated $67,500 spent to date on the design and bid phases, leaving $407,500 in remaining estimated budgeted funds to complete the project. S taff recommends keeping a 15% construction contingency for the project ($122,920), and believes it will cost $81,935 for construction testing, inspection, and support activities to complete the project. Award of this bid as-is would require an additional budget appropriation of $616,700. After review of the bids, it does not appear that the bid will come down substantially in price without major design revisions (thinn er concrete sections, selection of cheaper materials, etc.), reducing the overall site f ootprint, or removal of bid items. There were four potential items identified by staff to lower overall project cost, as identified below: 1. The most obvious potential for reduction in cost would be to remove the shade structure (pergola) from the project. This item totaled $226,650 and $278,094 in the low and second low bidder’s proposal, respectively, and is a significant change to the project that would trigger the project to be rebid. This change would require that the City rebid the project pursuant with Public Contract Code §§ 20166. Page 181 of 216 ITEM NUMBER: C-1 DATE: 11/10/20 2. The southern portion of the plaza, which serves as access to the adjacent businesses, could be constructed as an asphalt roadway in lieu of concrete. This would likely result in total cost savings of approximately $25,000. Since there is currently no asphalt work associated with this contract, this change would require that the City rebid the project pursuant with Public Contract Code §§ 20166. 3. Replace low concrete seat walls around plaza trees and along northern project perimeter with concrete flush curbs. Kirk’s cost for this item was $98,790, but additional concrete work involving thickened sidewalk edges and new curb would result in an estimated cost savings of $75,000. Exact savings are not known at this time, as the difference between bid quantity and final quantity for concrete curb will require a negotiation with the contractor. Benches could be added to provide seating in lieu of seat walls at planter areas. This item could be addressed through a construction change order and not require rebidding the project. 4. Replace brick paver band with concrete pavement to match plaza concrete. Kirk’s cost for this item was $66,965, but would need to be replaced with concrete sidewalk resulting in an estimated cost savings of $45,000. This item could be addressed through a construction change order and not require rebidding the project. 5. Eliminate decorative fencing at southern edge of plaza and replace with bollards to prevent vehicles from entering plaza. Kirk’s cost for this item was $21,005, but additional bollards would be required to the vehicle access portion of the plaza from the pedestrian portion. This would result in an estimated cost savings of $15,000. This item could be addressed through a construction change order and not require rebidding the project. The Parkland Facilities Fees Fund has approximately $700,000 in available fund balance ($1.2 million in fund balance less the remaining $407,500 set aside for this project and less $144,000 set aside for the Lake Pipe Fill Line). The Atascadero Pickleball Club is also seeking a City contribution for the proposed pickleball courts. Use of the Parkland Impact Fees Funds would be the recommended funding source for any City contribution to new park facilities such as the pickleball courts. It is not uncommon for cities to loan general funds to a project and reimburse the general fund loan from future impact fees, subject to the availability of general funds and a realistic expectation of future impact fees. There are Park Impact Fee Funds available to complete the project as bid; however there are always additional park expansion needs of the community. The Council can award the bid as designed, with the appropriation in $616,700 in additional Parkland Impact Fees or the Council may direct staff to make design changes that would potentially lower the cost of the Project. The staff recommendation includes Council taking action on any desired design changes and then authorizing the City Manager to execute a contract with Kirk Construction. The cost reduction for the design change would be negotiated with Kirk Construction based on unit costs. Page 182 of 216 ITEM NUMBER: C-1 DATE: 11/10/20 FISCAL IMPACT: The Project funding sources and uses are as follows: ESTIMATED EXPENDITURES Design, Soils Testing $ 67,500 Construction Contract 819,345 Inspection / Testing / Construction Admin. @ 10% 81,935 Construction Contingency @ 15% 122,920 Total Estimated Expenditures: $ 1,091,700 FUNDING SOURCES Public Facilities Fees Fund budgeted funds $ 475,000 Additional Facilities Fees Fund Reserves 616,700 Total Funding Sources $ 1,091,700 ALTERNATIVES: 1. Cancel the project or direct staff to rebid the project. Staff does not recommend rebidding the project as-is without making significant changes to the project scope, since rebidding will likely result in higher bids. Rebidding the project will delay the project by 2-3 months. 2. Direct staff to remove the shade structure from the project. Removal of the shade structure will require rebidding the project and will delay the project by 2-3 months. 3. Direct staff to remove concrete seat walls from the project (Bid Item #25) and negotiate work adjustments with the contractor. 4. Direct staff to remove the brick paver band f rom the project (Bid Item #24) and replace with concrete sidewalk (Bid Item #22). 5. Direct staff to remove decorative fencing from the project (Bid Item #18) and negotiate work adjustments (bollards, etc.) with the contractor. ATTACHMENTS: 1. Bid Summary 2. Bid Analysis Spreadsheet 3. Atascadero Mall Plaza Plans Page 183 of 216 ITEM NUMBER: C-1 DATE: 11/10/20 ATTACHMENT: 1 Page 184 of 216 BID ANALYSISPROJECT: ATASCADERO MALL PLAZA PROJECTBID DATE: SEPT. 10, 2020ITEM EST.NO. QTY UNITLOWEST HIGHEST AVERAGE1MOBILIZATION, BONDS & INSURANCE 1 LS16,085.00$ 128,000.00$ 56,280.44$ 16,085.00$ 128,000.00$ 56,280.44$ 29,500.00$ 29,500.00$ 183% 23% 52%2TRAFFIC CONTROL 1 LS978.00$ 20,480.00$ 5,928.67$ 978.00$ 20,480.00$ 5,928.67$ 5,000.00$ 5,000.00$ 511% 24% 84%3WATER POLLUTION CONTROL PLAN (WPCP) PREPARATION AND IMPLEMENTATION1LS2,000.00$ 59,000.00$ 14,222.11$ 2,000.00$ 59,000.00$ 14,222.11$ 8,600.00$ 8,600.00$ 430% 15% 60%4 DEMOLITION 1 LS20,000.00$ 68,609.00$ 44,094.67$ 20,000.00$ 68,609.00$ 44,094.67$ 55,000.00$ 55,000.00$ 275% 80% 125%5TREE REMOVAL2EA-$ -$ -$ -$ -$ -$ -$ -$ - - -6ADJUST EXISTING UTLITY STRUCTURE TO GRADE11 EA350.00$ 1,250.00$ 739.22$ 3,850.00$ 13,750.00$ 8,131.44$ 785.00$ 8,635.00$ 224% 63% 106%7RESET EXISTING MONUMENT (NAIL & TAG)1EA510.00$ 2,200.00$ 1,362.22$ 510.00$ 2,200.00$ 1,362.22$ 1,250.00$ 1,250.00$ 245% 57% 92%8 STORMTECH UNDERGROUND BASIN 686 CF16.48$ 59.00$ 31.97$ 11,305.28$ 40,474.00$ 21,931.42$ 29.50$ 20,237.00$ 179% 50% 92%9 CONSTRUCT STORMDRAIN MANHOLE 1 EA2,500.00$ 15,531.00$ 6,752.89$ 2,500.00$ 15,531.00$ 6,752.89$ 4,100.00$ 4,100.00$ 164% 26% 61%10 12" TRAFFIC RATED AREA DRAIN INLET 3 EA299.00$ 1,600.00$ 1,010.67$ 897.00$ 4,800.00$ 3,032.00$ 930.00$ 2,790.00$ 311% 58% 92%11 8" STORMDRAIN PIPE 120 LF40.00$ 114.00$ 71.00$ 4,800.00$ 13,680.00$ 8,520.00$ 71.00$ 8,520.00$ 178% 62% 100%12 CONNECT TO EXISTING 24" STORMDRAIN PIPE (CONC. LUG) 1 EA850.00$ 2,831.00$ 1,932.67$ 850.00$ 2,831.00$ 1,932.67$ 2,500.00$ 2,500.00$ 294% 88% 129%13 CONSTRUCT CONCRETE CURB30LF9.00$ 85.00$ 55.82$ 270.00$ 2,550.00$ 1,674.67$ 72.40$ 2,172.00$ 804% 85% 130%14 CONSTRUCT CONCRETE SIDEWALK (PEDESTRIAN, 4"/4")7400 SF8.20$ 12.00$ 9.62$ 60,680.00$ 88,800.00$ 71,155.11$ 8.20$ 60,680.00$ 100% 68% 85%15CONSTRUCT CONCRETE SIDEWALK (DRIVEABLE, 8"/6")4800 SF10.30$ 19.50$ 14.50$ 49,440.00$ 93,600.00$ 69,584.00$ 10.30$ 49,440.00$ 100% 53% 71%16BRICK PAVER BAND2270 SF19.00$ 39.00$ 28.59$ 43,130.00$ 88,530.00$ 64,909.39$ 29.50$ 66,965.00$ 155% 76% 103%17CONSTRUCT CONCRETE SEAT WALLS (SF FACE) 555 SF60.00$ 314.00$ 184.78$ 33,300.00$ 174,270.00$ 102,551.67$ 178.00$ 98,790.00$ 297% 57% 96%18INSTALL DECORATIVE FENCING 215 LF97.70$ 150.00$ 120.52$ 21,005.50$ 32,250.00$ 25,912.28$ 97.70$ 21,005.50$ 100% 65% 81%19STRUCTURAL CONCRETE 128 CY487.50$ 1,263.00$ 827.61$ 62,400.00$ 161,664.00$ 105,934.22$ 487.50$ 62,400.00$ 100% 39% 59%20STRUCTURAL STEEL (PERGOLA STRUCTURE)45000 LB2.60$ 10.71$ 5.09$ 117,000.00$ 481,950.00$ 228,850.00$ 3.65$ 164,250.00$ 140% 34% 72%21LANDSCAPE PLANTING 1 LS27,000.00$ 47,900.00$ 31,952.78$ 27,000.00$ 47,900.00$ 31,952.78$ 28,350.00$ 28,350.00$ 105% 59% 89%22LANDSCAPE IRRIGATION1LS22,000.00$ 57,000.00$ 33,847.44$ 22,000.00$ 57,000.00$ 33,847.44$ 28,800.00$ 28,800.00$ 131% 51% 85%23SITE ELECTRICAL1LS90,000.00$ 188,000.00$ 130,206.61$ 90,000.00$ 188,000.00$ 130,206.61$ 90,360.00$ 90,360.00$ 100% 48% 69%TOTAL BID PRICE: 819,344.50$ BID ITEM DESCRIPTIONUNIT PRICEAVERAGEUNIT PRICEHIGHESTUNIT PRICETOTAL PRICE ANALYSIS(OF 9 BID PROPOSALS)HIGHESTTOTAL PRICEAVERAGETOTAL PRICEKIRK CONSTRUCTION(LOW BIDDER)TOTAL COST% OF PRICE OF ALL BIDDERSUNIT PRICE ANALYSIS(OF 9 BID PROPOSALS)LOWESTUNIT PRICELOWESTTOTAL PRICEITEM NUMBER: C-1DATE: 11/10/20ATTACHMENT: 2 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 186 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 187 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 188 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 189 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 190 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 191 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 192 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 193 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 194 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 195 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 196 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 197 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 198 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 199 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 200 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 201 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 202 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 203 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 204 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 205 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 206 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 207 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 208 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 209 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 210 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 211 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 212 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 213 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 214 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 215 of 216 ITEM NUMBER: C-1 DATE: 11/10/20ATTACHMENT: 3Page 216 of 216