Document Palmdale_doc_854c199c6e

Housing H-1 Adopted by City Council 04/11/01 SECTION 1: INTRODUCTION A. Purpose of the Housing Element This update of the City of Palmdale’s Housing Element of the General Plan has been prepared pursuant to California Government Code Article 10.6, Sections 65580 through 65589.9. As part of its general plan, each city and county in the state is required to prepare a housing element. In creating the housing element law, the Legislature’s aim was to ensure that local governments would marshal available resources, develop appropriate local programs and cooperate with one another in order to address local and regional housing needs and the state’s housing goals. The housing element must identify and analyze the community’s housing needs and provide a statement of goals, policies, quantified objectives, financial resources and scheduled programs for the preservation, improvement and development of housing. The element must identify adequate sites to meet the housing needs of all economic sectors of the community and permit a variety of housing types including rental housing, factory-built housing and mobile homes. B. Public Participation The Housing Element was prepared by the consulting firm of Karin Pally Associates under the direction of the Planning Department of the City of Palmdale. Housing element law requires that the local government make a diligent effort to involve all economic segments of the community in the development of the housing element. This participation must be described in the element. On July 28, 2000, the Planning Department held a meeting with invited members of the Antelope Valley Homeless Coalition to discuss the issues facing special needs groups in the Antelope Valley. Information provided at this meeting was incorporated into the element’s special needs section. A draft Housing Element dated October 12, 2000, was distributed for public review to ten local social service organizations dealing with housing issues, SCAG, the Building Industry Association and the City’s Housing Division. The cities of Lancaster and Santa Clarita and the County of Los Angeles, which are all within SCAG’s North L.A. County subregion, were also provided copies of the draft Element for review. A one-eighth page public hearing notice was published in the local newspaper, the Antelope Valley Press on October 13, 2000 providing notice of a public hearing to be held on this matter on November 2, 2000. In addition, an article appeared in the Antelope Valley Press on October 25, 2000 in which residents were invited to comment on the draft Housing Element, which was available for review on the City’s Web site, and to attend the public hearing. ---PAGE BREAK--- Housing Adopted by City Council H-2 04/11/01 Only two comments were received as a result of these advertisements: one from the local Southern California Edison Company’s community liaison requesting that information on their alternative rates programs be included in the Housing Element. Although this does not specifically relate to energy conservation, this information has been included in Section IX., Energy and Water Conservation, as a means of promoting the availability of reduced rates for low income or medically dependent households. The Southern California Edison Company also supports the City’s Community Energy Efficient Program (CEEP). One letter was also received from a Palmdale restaurant owner in response to the draft Housing Element in opposition to any new affordable or multi-family units on the east side of the city. This letter was forwarded to the Planning Commission with an admonition from the City Attorney that such an opinion is contrary to state housing law in that multi-family housing is generally one of the primary methods of providing housing for low-income households. No modification was made to the draft Housing Element as a result of this letter. During the public hearing before the Planning Commission on November 2, 2000, no members of the public addressed this subject. Following the public hearing, the draft element was submitted to the California Department of Housing and Community Development (HCD) for review and comment. HCD’s comments were addressed in the draft element before is was scheduled for hearings before the Planning Commission and City Council for final approval. Following adoption by the City Council on April 11, 2001, the Housing Element was then submitted to the state for final review and certification. C. Consistency with Other General Plan Elements As required by state law, the Housing Element has been prepared to be consistent with other elements of the General Plan. The analysis of adequate sites set forth in the element is based on the City’s General Plan Land Use map, the goals, objectives and policies of the Land Use Element and recent revisions to the land use map and zoning code approved by City Council. The Land Use Plan provides a range of land uses to accommodate the needs of the City’s growing population while the Public Services Element ensures that adequate services will support land uses. Additionally, the Circulation Element provides for development of adequate transportation systems for future housing development and the Environmental Resources Element addresses the related issues of resource conservation and open space, providing a basis for evaluating existing resources and planning for their protection. The Public Services Element sets forth policies to ensure adequate services for schools, libraries, health care and the electric, water, gas, sewer, fire and police services needed to support ---PAGE BREAK--- Housing H-3 Adopted by City Council 04/11/01 development. The Safety Element is concerned with preparations for man-made and natural disasters including earthquake, flood, hazardous materials, and fire in order to minimize impacts on City residents. The Parks, Recreation and Trails Element will guide future development of Palmdale’s considerable recreational resources. The Noise Element sets guidelines to prevent noise and land use conflicts. The Community Design Element provides design guidelines for both residential and commercial development to shape the City’s overall form and appearance. New development is evaluated for consistency with all of the elements of the General Plan. Modifications to any of the elements themselves are evaluated for consistency with the other remaining elements to ensure that all long term community goals can be achieved as the City is built out. According to the Palmdale Redevelopment Agency, programs included in the Housing Element implement the Redevelopment Agency’s five-year housing goals, making the Housing Element consistent with the Redevelopment Agency’s Implementation Plan for 2000-2005. This Housing Element is consistent with all elements of the General Plan in that: ? Updating the Housing Element responds to the changing needs of the City and incorporates revisions to SCAG’s Regional Housing Needs Assessment. Land Use Policy L1.1.3. ? Programs are included to provide down payment assistance and low-interest mortgage loans to qualifying low income households; promote the use of alternative housing concepts; offer density bonuses to housing developers in exchange for long-term housing affordability; acquire land for production of new senior housing; and to promote affordable housing for existing and future City residents in accordance with Land Use Objective L3.1. ? The Senior Housing Construction Program promotes development of senior housing near Courson Park in close proximity to the senior center and public transportation in accordance with Land Use Element Policy L3.2.2. ? The Neighborhood Improvement Program provides incentives that promote infill development by acquiring lots and extending infrastructure for new units constructed by nonprofit housing advocates in accordance with Land Use Policy L2.3.1.b. ? The Mobile Home Park and Homeownership and Rehabilitation Program protects affordability levels at existing mobile home parks by providing operating subsidies in ---PAGE BREAK--- Housing Adopted by City Council H-4 04/11/01 three mobile home parks purchased by LINC Housing with assistance from the City in accordance with Land Use Objective L3.3. ? The Housing Element identifies housing that is supported by adequate public services and facilities as promoted under Goal PS1 of the Public Services Element. ? The Housing Element considers expanding provisions for mixed use housing which maximizes use of infrastructure systems in accordance with Public Services Policy PS1.3.6. ? The Partners Against Crime and Neighborhood Improvement Programs promote the upkeep and proper maintenance of the City’s housing stock in accordance with Safety Element Policy S4.1.3. ? The Multifamily Access Program promotes maintenance of the city’s multifamily housing stock through annual inspections to promote protecting the health, safety and welfare of the public in accordance with Safety Element Objective S4.1. ? The Comprehensive Neighborhood Improvement Program and Palmdale Beautification Program promote Community Design Element Goal CD1 by improving the quality of selected low and moderate income single family neighborhoods. This contributes to the City’s economic vitality and enhances the quality of life for all residents. D. Organization of the Element Section II of the element provides an analysis of performance on the goals and programs of the previous adopted Housing Element. Section III provides data on the City’s population and Section IV discusses the characteristics of Palmdale’s housing stock. Section V analyzes the City’s housing needs and resources. The analysis of housing needs is continued in Section VI, which addresses special needs populations. Section VII analyzes constraints on housing development; Section VIII is concerned with the preservation of developments with expiring federal and local subsidies. Section IX addresses programs for energy and water conservation. Section X sets forth the City’s goals, policies and programs for the next five years. Section XI is a chart of the City’s quantified objectives for 2000-2005 and Section XII lists the financial resources for meeting those objectives. ---PAGE BREAK--- Housing H-5 Adopted by City Council 04/11/01 SECTION 2. PERFORMANCE ON PREVIOUS ELEMENT The previous two planning periods for the housing element in the SCAG region were 1989 to 1994 and 1994 to 1998. The City of Palmdale prepared an approved housing element for the first planning period in 1993 and for the second planning period in 1994. The 1994 element, approved by the City Council in 1996, did not include new fair share goals because SCAG did not have funds to make new calculations in that year. The approved 1996 element did, however, establish new quantified objectives including a new fair share set by the City itself as recommended by the California Department of Housing and Community Development. This performance review includes programs set forth in both the 1989 and 1996 elements. Units produced between 1998 and 2000 are included twice in the Housing Element, once as accomplishments in the performance review and once in the quantified objectives for 2000-2005. A. Success in Meeting Quantified Objectives Table H-1 Summary of Housing Objectives and Accomplishments 1989-2000 Housing Type Objective Accomplishment New Construction 10,388 units 15,039 units Preservation 122 units 119 local bond-financed units Rehabilitation 25 units plus one mobile home park 517 units plus 3 mobile home parks (includes 107 very low income senior units) First-Time Homebuyer Loans 500 below-market loans 232 loans (42 new units) 74 loans for mobile home purchase Replacement Housing 10 units No units removed by CRA Special Needs 25 senior units 144 senior units (includes 28 very low income units) ---PAGE BREAK--- Housing Adopted by City Council H-6 04/11/01 Table H-2 Housing Accomplishments 1989-2000 Accomplishment Number of Units 1. New construction Between 1989 and 2000, 15,029 net additional units were constructed in Palmdale. In 2000 construction will be completed on 144 affordable senior units and 200 affordable family units 14,170 single family 86 attached 791 multifamily (18) mobile home 15,029 units 344 units 15,373 total units 2. Preservation Three bond-funded multi-family rental projects with a total of 119 units affordable to very low income households were refinanced and the affordability of the very low income units was preserved for an additional seven to 25 years. 119 3. Purchase and rehabilitation Three mobile home parks with a total of 786 spaces were purchased and rehabilitated. 156 of these spaces were restricted for low-income households while the rest are for moderate-income households. At the time of purchase, 481 households were occupying spaces in the parks. The new owners made much needed improvements in the parks and are now working on full occupancy. Also at the time of purchase, downpayment assistance was provided to help 74 households purchase their mobile home coaches. Four multi-family rental buildings with 284 units were purchased and rehabilitated and their rents made affordable to very low-income households for 55 years. Of the 284 units, 107 were in a building reserved for seniors. In all four buildings half of units are affordable to households earning 40% of County median income and half of the units are affordable to households earning 50% of median income. 156 low-rent mobile home park spaces Homeownership assistance to 74 low- income households. 284 very low-income units including 107 senior units 4. Repair Handiworker Program Owner Occupied Households @50% of median Households @ 80% of median Emergency Grant Program 63 units 9 units 39 units 111 units ---PAGE BREAK--- Housing H-7 Adopted by City Council 04/11/01 Table H-2 Housing Accomplishments 1989-2000 (Con’t) Accomplishment Number of Units 5. Neighborhood Improvement Grant Program Owners @ 100% of median Renters @ 100% of median Owners @ 80% of median Owners @ 50% of median Renters @ 80% of median Renters @ 50% of median 3 12 19 55 8 17 114 6. Rental Rehab Program Restricted for households @ 80% of median 8 units 7. Homeownership Assistance Downpayment assistance to purchase new homes provided to households @80% of median income 232 units 42 new units TOTAL 15, 909 new and rehabilitated units Table H-3 Quantified Objectives 1989-2000 Housing Type Very Low Low Moderate Above Moderate Total New Construction 1,627 2,388 1,973 4,400 10, 388 Rehabilitation 25 repair grants 1 mobile home park 25 units + 1 mobile home park Special Needs 25 senior units 25 senior units Preservation 122 units 122 units Conservation 184 Section 8 vouchers 10 Mod Rehab units 184 Section 8 vouchers 10 Mod Rehab units Replacement 10 units 10 units Financing 500 below market loans 500 below market loans ---PAGE BREAK--- Housing Adopted by City Council H-8 04/11/01 City Performance on Quantified Objectives, 1989-2000 A comparison of Table H-1 and Table H-2 shows that Palmdale outperformed its objectives in new construction and in purchase and rehabilitation. The income level of all the new homes cannot be verified, but the actual number of homes constructed was 15,029. While Palmdale’s objectives for very low income housing were modest, its performance was substantial: Four buildings with 284 units were purchased, rehabilitated and made permanently affordable to very low income households. Three additional projects providing 119 units to households earning 50% or less of median income were refinanced and their affordability extended. Assistance was provided for the purchase and renovation of three mobile home parks, making 157 spaces permanently affordable to low-income mobile home owners. Additional assistance was provided to help 74 low-income homeowners buy mobile homes. Only in the area of affordable finance was the City not able to meet its goals. Although it projected 500 below-market loans; 61 such loans were made, 42 of which were for newly constructed units. The problem was probably less with program implementation than with the projection itself. The original program included several different jurisdictions and a number of sources of bond finance. The goals were those of the combined program rather than of the City’s program alone. More realistic goals for the City’s down payment assistance program have been established for 2000-2005. B. Evaluation of Housing Programs 1989-2000 In the eleven years between 1989 and 2000, the City of Palmdale implemented the majority of programs proposed in its housing element as discussed below: Ordinances were adopted providing for a density bonus, temporary dependent units, second units, condominium conversions and new mobile home parks; Three neighborhood improvement programs were initiated, coordinating the efforts of both City and County agencies to achieve housing, infrastructure and public safety improvements in the City’s older neighborhoods; A downpayment assistance program (First-Time Homebuyer Program) helped the City’s lower income households become homeowners. Forty-two households received assistance in purchasing new homes; ---PAGE BREAK--- Housing H-9 Adopted by City Council 04/11/01 The City adopted standards for homeless shelters, transitional housing facilities and congregate meal facilities; The City’s South Antelope Valley Emergency Services program (SAVES) provided emergency housing to 279 households in 1998-99 and 257 households with 777 family members in 1999-2000; and The City enacted a rent control ordinance for mobile home park spaces and prohibited mobile home park operators from requiring long leases that would exempt the spaces from rent control. Evaluation of Past Performance – Programs 1989-2000 GOAL 1: PROMOTE CONSTRUCTION OF NEW HOUSING AFFORDABLE TO ALL INCOME GROUPS Program H1.A: New Housing Development In 1988, the Southern California Association of Governments set Palmdale’s fair share of regional housing growth at 10,338 units between 1989 and 1994. Between 1989 and 2000, 15,029 new housing units were constructed in Palmdale. Included in this number were 14,170 single family units, 86 condominiums and 791 multifamily units. (Program H1.A in updated programs section.) Program H1.B: Density Bonus Ordinance The Palmdale City Council adopted a density bonus ordinance in 1994. The ordinance provides a density bonus of 25% for developers who agree to make 10% of units affordable at 50% of area median income or 20% of units affordable at 60% of area median income. A 144-unit senior housing project was granted a 50% density bonus. This project, which is under construction, will make 20% of its units affordable to low-income seniors. Few other requests for the density bonus were filed in the past 11 years, probably due to overdevelopment of multi-family housing in the 1980s. (Program H1.B in updated programs section.) Program H1.C: Second Unit Ordinance The Palmdale City Council adopted a second unit ordinance in 1994 in compliance with California Government Code Section 65852.1-65852.2. This ordinance permits the construction of second units by right. Since it is difficult to fit a second unit on a standard 7,000 square foot lot, the City has received many inquiries about second units but few applications have been filed. The City is currently reviewing minimum residential rear yard requirements to allow more rear yard coverage and less restrictive rear yard setbacks for accessory structures. Also, Tables H-21 and H-22 show that there are (and will be) many larger single family residential lots (10,000- 40,000 square feet) in the City that will easily accommodate second units. It may therefore become easier in the future to construct second units. (Program H1.C in updated programs section.) ---PAGE BREAK--- Housing Adopted by City Council H-10 04/11/01 Evaluation of Past Performance – Programs 1989-2000 Program H1.D: Alternate Housing Types Ordinance An ongoing program, the alternate housing types ordinance allows the construction of new mobile home parks in Palmdale and the placement of mobile homes on single family lots under certain conditions. No new mobile home parks were constructed during the period 1989-2000. Seven requests were made to place mobile homes on single family lots. As a result of studies conducted during the moratorium that began in 1999, the City will consider modifying residential standards to allow smaller lots and/or wide shallow lots for development of attached housing. (Program H1.D in updated programs section.) Program H1.E: Minimum Residential Standards Ordinance This ordinance establishes minimum standards for new residential construction. It was adopted as part of the Citywide Zoning Ordinance in 1994. It is currently being implemented citywide for both single-family and multi-family housing. The standards require more open space and amenities for multi-family development than previous standards. Recently approved multi-family development in the City accommodate 14 dwelling units per acre within an allowable density range of 10.1 to 16 dwelling units per acre; therefore the City believes that new minimum residential standards ordinance is not a constraint on development. (Policy H1.1.6 in updated programs section.) Program H1.F: Inclusionary Housing To date, no program has been adopted, but the Palmdale Planning Commission has requested that staff study the feasibility of a voluntary inclusionary ordinance. The updated Housing Element’s program section includes this proposed program. (Program H8.A in updated programs section) Program H1.G: First-time Homebuyer Program This program was implemented as the Mortgage Assistance Program (MAP). It provides down payment assistance in the form of $10,000 due-on-sale soft seconds to eligible first-time homebuyers who are buying homes priced within program guidelines. Assistance is also provided to employees of businesses that relocate to Palmdale. This assistance is considered an economic development incentive. In June 1999, the City’s annual report to HUD showed that 22 loans had been made by this program in 1998-1999. An updated performance report is not yet available. The City anticipates making an additional 100 down payment assistance loans in the next five years of which 40 will be for newly constructed homes. (Program H1.E in updated programs section.) ---PAGE BREAK--- Housing H-11 Adopted by City Council 04/11/01 Evaluation of Past Performance – Programs 1989-2000 Program H1.H: Single Family Mortgage Revenue Bond Program As written, this was a program to issue tax-free mortgage revenue bonds to provide low-interest loans for first time homebuyers. In 1996, the City’s updated housing element set the goal of this program at $50 million in bonds to provide 500 below- market loans. Called the “FreshRate Program,” this program was a joint effort of 43 Los Angeles County cities including Palmdale to participate in a bond offering $50 million for down payment assistance to low and moderate income households. This program is administered by the Independent Cities Lease Finance Authority. As of June 1999, no loans had been made to Palmdale households. Palmdale has its own downpayment assistance program financed by the Redevelopment Housing Set-Aside (see above, Program H1.G); therefore,, this program has been eliminated in the updated programs section. Program H1.I: Affordable Housing Land Bank This is an ongoing program that uses redevelopment and other available funds to acquire land for the new construction of affordable single and multifamily housing units. In the current planning period, the Redevelopment Agency has acquired land in the downtown area of the City near Courson Park. This area is near the senior center and other amenities such as transportation and retail. Once the remaining parcels have been assembled, 100 to 300 affordable senior units will be constructed in a campus-like setting. Implementation will continue throughout the planning period 2000-2005 with completion of construction expected in 2005-2006. (Program H1.F in updated programs section.) Program H1.J: Predevelopment Loan Program This program proposed the provision of predevelopment loans to nonprofit agencies and resident associations to pay for financial consulting, fees, permits, inspections and other expenses incurred in nonprofit acquisition, rehabilitation or construction of affordable housing. Two nonprofit housing organizations, LINC and Southern California Housing Corporation received assistance from this program. The Redevelopment Agency’s housing programs typically refund expenses and waive fees, therefore, this program in included in Program H1.H, Affordable Housing Construction Program in the updated programs section. ---PAGE BREAK--- Housing Adopted by City Council H-12 04/11/01 Evaluation of Past Performance – Programs 1989-2000 Program H1.K: Rental Housing Construction and Rehabilitation Program This ongoing program provides loans to homeowners and rental property owners to rehabilitate housing developments to serve low-income families, seniors and special needs households. As implemented, this program was used primarily for rehabilitation, therefor it has been moved to Goal 2, under Program H2.A in the updated programs section. Program H1.L: Replacement Housing Land Bank This program uses funds from the Redevelopment Housing Set-Aside to acquire land to construction affordable replacement units when housing is demolished for publicly financed projects. It is combined with another program called the affordable housing land bank in the updated programs section where it is program H1.G. Program H1.M: Replacement Housing Program Replacement of housing units demolished by the Redevelopment Agency for publicly financed projects is required by state law. This requirement appears as Policy H1.1.5 in Section X, Goals, Objectives, Policies and Programs The City’s Redevelopment Agency Housing Division acquires land and banks it for replacement housing whenever the redevelopment agency removes residential structures for a redevelopment project. Program H1.N: Condominium Conversion Ordinance The City Council approved an ordinance for converting multifamily units to condominiums in Chapter 16.090 of the Zoning Code. The ordinance establishes physical standards for condominium conversions, procedures for conversion applications and limits on the proportion of the City’s rental housing stock that can be converted in any one year. A conditional use permit is required for condominium conversions. Only 82 condominium units were built between 1990 and 2000. The single family market is providing ample ownership opportunities so while this ordinance will remain in the code, it is not included as a program in the updated programs section. Program H1.O: Permit Streamlining Program This is an existing program that expedites permit processing. It is operated jointly by the Planning Department and the Building and Safety Department. This program has operated very efficiently for several years and is now considered Policy H.1.17 in the updated programs section. ---PAGE BREAK--- Housing H-13 Adopted by City Council 04/11/01 Evaluation of Past Performance – Programs 1989-2000 Program H1.P: Housing Impact Review This existing program uses the California Environmental Quality Act (CEQA) process to consider impacts on housing opportunities for each zone change, General Plan amendment or zoning ordinance amendment. When necessary, an analysis of the effects of proposed City policies and programs on the provision and preservation of housing for low and moderate income households is incorporated into the review. This is program H3.A in the updated programs section. GOAL H2. PRESERVE AND IMPROVE THE EXISTING SUPPLY OF AFFORDABLE HOUSING Program H2.A: Habitability Standard Adopt an ordinance establishing a standard of habitability for existing mobile home parks and multifamily and single family dwelling units. This program was established by ordinance in 1994 and can be found in chapter 8.36 of the Palmdale Municipal Code. This ordinance defines conditions defining a nuisance constituting a nuisance or a substandard property, establishes a requirement to abate public nuisances, establishes responsibility for property maintenance, and authorizes code enforcement officers to make inspections and order abatement of public nuisances. The program also sets forth noticing and other enforcement requirements. It is Policy H2.1.1 in the updated programs section. Program H2.B: Handyworker Program Funded by the redevelopment housing set-aside, the handyworker grant program provided senior and disabled residents with housing loans of up to $25,000 to rehabilitate their personal residences. These were no payment loans that are forgiven at the end of 30 years. The City’s Consolidated Plan Annual Performance Reports for 1997-98 and 1998-99 show that 72 low income households received handyworker loans. The functions of the handyworker program have now been incorporated into the Program H.2.A. Single Family Rehabilitation Loan Program, Program H2.C, Emergency Repair Grant and Program H7.A, Comprehensive Neighborhood Improvement Program, in the updated programs section. ---PAGE BREAK--- Housing Adopted by City Council H-14 04/11/01 Evaluation of Past Performance – Programs 1989-2000 Program H2.C: Los Angeles County Community Development Commission Rental Rehabilitation Program This is a program of the County Community Development Commission. It is no longer part of Palmdale’s housing programs. Prior to 1995, the City’s received its Community Development Block Grant (CDBG) funds from the County because its population was not large enough to make it a CDBG entitlement city. By 1995, the City’s population exceeded 50,000 persons and the City filed a successful application to become a CDBG entitlement City. Program H2.D: Multifamily and Rental Unit Rehabilitation Program Funded by the redevelopment housing set-aside, this ongoing program makes low- interest loans to owners of both single and multifamily rental properties. Owners must agree to rent their properties to eligible low income households and to maintain the affordability of the assisted units for 30 years. Although the Housing Division markets this program by distributing brochures at various community events, property owners have not made much use of this program because they don’t want to restrict their rents for long periods. In 1999, one 8-unit rental building was rehabilitated under this program. No quantified goals for this program have been set for 2000-2005. Code enforcement is having some success in ensuring that rental housing meets habitability standards. The City’s goal for 2000-2005 is to improve deteriorated housing stock in its target neighborhood areas. In Target Neighborhood 3, the City has identified 600 units that need rehabilitation of which about 20% are units in multi-family buildings. The City will provide rehabilitation grants to all property owners who wish to participate and expects that about 80% of the properties will benefit from the program. (Policy H2.1.1 in updated programs section.) Program H2.E: Housing Conservation Program This was intended to use redevelopment housing set-aside funds to provide rehabilitation loans to owner-occupants of single family houses and mobile homes who earn 80% or less of the area median income. Loan amounts for housing improvement ranged from $5,000 to $25,000. Interest was accrued at 3% simple interest with a 15-year term. This program was not implemented because its functions were performed by the Handyworker Program which could lend up to $25,000 per unit. In the updated programs section, the Handyworker Program has been replaced by an Emergency Grant Program with grant limits of $3,000 per unit and the Single Family Rehabilitation Loan Program which offers loans of $10,000, $15,000 or $20,000 to eligible owners of single family properties. ---PAGE BREAK--- Housing H-15 Adopted by City Council 04/11/01 Evaluation of Past Performance – Programs 1989-2000 Program H2.F: Emergency Grant Program This program assists owner-occupants of single family homes and mobile homes who need a one-time grant for emergency repairs. Eligible recipients can earn no more than 50% of area median income. The maximum grant amount is $3,000. In 1999, 39 households received an emergency grant. (Program H2.C. in updated programs section) Program H2.G: Mobile Home Space Rent Control This program, adopted in August 1990, regulates increases in lease costs for mobile home park spaces to ensure that the spaces remain affordable to low and moderate- income occupants. The program is enforced by the City’s Mobile Home Park Rental Review Board. (Program H2.D in updated programs section) Program H2.H: Enforcement of Mobile Home Park Lease Terms Ordinance This ordinance, adopted on May 14, 1992, amends the City’s mobile home space rent control ordinance to prevent owners from circumventing rent control by refusing to offer new tenants a lease term of 12 months or less. Under existing state law, longer leases are exempt from rent control. The ordinance currently states that no owner may require any resident or prospective resident to sign a lease or rental agreement that exempts the space from local rent control. (Program H2.E in updated programs section) Program H2.I: Mobile Home Park Homeownership and Rehabilitation This program assisted residents of mobile home parks occupied chiefly by low-income families and seniors to purchase their parks and own them cooperatively. It provides grant funding to rehabilitate park spaces, hook-ups and grounds to meet City standards for mobile home parks. It provides City funds for predevelopment expenses. Between 1993 and 1998, the City provided funds to LINC Housing to purchase and rehabilitate three mobile home parks and make 20% of the spaces permanently affordable to lower income households. The parks are not yet self- sufficient so under updated Program H2.F, the City will provide an operating subsidy of $1.55 million until the parks are fully leased. At the same time, the City also funded a Tenant Incentive Program administered by LINC. This program provided down payment assistance to 74 households allowing them to purchase mobile home coaches and landscape their spaces. These loans have no payments and will be completely forgiven in 10 years. In 2000-2005 under Program H1.F, the City will use HOME funds to provide a first time buyer assistance program to help 120 households buy new mobile homes. ---PAGE BREAK--- Housing Adopted by City Council H-16 04/11/01 Evaluation of Past Performance – Programs 1989-2000 Program H2.J: Mobile Home Park Task Force This task force was convened and then disbanded in the early 1990s. Membership included mobile home park owners and their tenants. Its purpose was to facilitate negotiations between park tenants and owners on space rents and lease terms. Legislation was proposed to address the complaints but did not meet with tenant approval and so was not passed. The task force was eventually disbanded. Program H2.K: Comprehensive Neighborhood Improvement Program This new program began operating in 1997. It is a comprehensive program to improve the quality of selected Palmdale neighborhoods by enforcing compliance with building, safety, health, fire, and other regulations. The program is implemented by a team made up of officials from the City Departments of Planning, Building and Safety, Public Works and the Redevelopment Agency, the Fire Department, the Sheriff’s Department and other agencies. In addition to citing building owners for deficiencies, this program sponsors neighborhood clean-ups, installs infrastructure improvements such as sidewalks and streetlights and uses other City programs to make loans and grants for facade improvements such as paint, landscaping and fences. In 1998-99, The program provided grants to 114 households in “Focus Neighborhood Two” for exterior paint, driveway and landscape improvements. Funds were also used in that neighborhood for trash cleanup, and for demolition of 59 vacant homes deemed public nuisances. There was a reduction in vacant homes in the north part of the neighborhood from 18% to This program is H7.A in the Housing Element’s program section for 2000-2005. Its new goal is to provide 600 grants of up to $2,500 per unit for exterior improvements as well as to provide neighborhood clean-up and infrastructure improvements for focus neighborhood #3 and identify a fourth focus neighborhood. The program works in conjunction with the PAC program (Program H7.B in updated programs section.) that provides property management training and crime prevention services. A second component of this program is to acquire infill lots within the focus neighborhoods and provide infrastructure improvements needed for nonprofit housing development. ---PAGE BREAK--- Housing H-17 Adopted by City Council 04/11/01 Evaluation of Past Performance – Programs 1989-2000 Program H2.L. Tenant Assistance Program This was a proposed program to provide information and assistance to residents in units with expiring federal subsidies to help them preserve those units. It was not implemented. Assistance to tenants in these units is provided by several nonprofit organizations in Los Angeles County including the Coalition for Economic Survival, (CES). Under other programs 119 units with state and local subsidies were refinanced and their affordability preserved. Program H2.M Mortgage Revenue Bond Refinance Program This program used locally issued mortgage revenue bonds to refinance three rental housing projects in Palmdale where 20% of the units were restricted for occupancy by low-income households. The restrictions in two buildings with 90 affordable units now extend to 2023 and 2025 respectively. The restrictions on a third building with 29 affordable units expire in 2007. This building will have to be refinanced again in 2007 to preserve the affordability of 29 units. This issue is addressed in Section VIII, Preservation. (Program H2.G in updated programs section) GOAL H3. INCREASE THE CAPACITY OF THE CITY TO DEVELOP AND IMPLEMENT HOUSING PROGRAMS Programs H3.A, H3.B and H3.C The programs under this goal were written at the time Palmdale became an entitlement city. The completed programs included a needs assessment for the City’s first Comprehensive Housing Affordability Strategy, (now the Consolidated Plan), and the preparation of an application for designation as a Community Development Block Grant entitlement City. Both these programs have been implemented and their goals accomplished. The City’s Redevelopment Agency now has a housing program with three housing staff. GOAL H4: PROMOTE EQUAL HOUSING FOR ALL PERSONS REGARDLESS OF RACE, RELIGION, SEX, MARITAL STATUS, ANCESTRY, NATIONAL ORIGIN, COLOR, AGE OR PHYSICAL CONDITION. Program H4.A Fair Housing Information Program Palmdale has a contract with the San Fernando Valley Fair Housing Council to conduct fair housing public education and investigate complaints in the City. This contract will come up for renewal during the planning period and the City will have to issue a new Request for Proposals. In August 2000, the City completed an Analysis of Impediments to Fair Housing Choice in conjunction with the San Fernando Fair Housing Council and a consultant. (See Goal H4 for fair housing objectives, policies and programs the in updated programs section.) ---PAGE BREAK--- Housing Adopted by City Council H-18 04/11/01 Evaluation of Past Performance – Programs 1989-2000 Program H4.B: Fair Housing Affirmative Marketing Practices This ongoing program was implemented as part of the Partners Against Crime landlord training program. In this program the PAC trainers provide realtors and owners and managers of rental housing with information about compliance with affirmative marketing practices. This program is now integrated into the ongoing PAC program. (Programs H4.B and H7.B in the updated programs section.) GOAL H5: ADEQUATELY HOUSE HOUSEHOLDS WITH SPECIAL NEEDS Program H5.A Senior Housing Program Under this program, the City provided funds to a nonprofit housing organization for the acquisition and rehabilitation of the Impressions, a 109-unit senior building. This investment made the senior units permanently affordable to seniors earning 40% to 50% of median income. Currently, a 144-unit senior project with 28 affordable units is under construction and land for 200-300 units of senior housing is being assembled by the City’s redevelopment agency. (This continues as Program H5.C in the updated programs section.) Program H5.B Senior Housing Design Review Program. Development standards for senior residential units were incorporated into the senior housing ordinance adopted by City Council. This ordinance was designed to ensure that units designated as senior units are accessible and meet established guidelines for such units. This program is Policy H5.1.5 in the updated programs section. Program H5.C Senior Housing Market Survey The City cooperates with for profit and nonprofit housing developers to assess senior housing needs. The City does not consider it necessary to list this as a program or policy in the updated programs section. Program H5.D: Develop a Dependent Housing Ordinance The City adopted a temporary dependent unit ordinance. Property owners may construct second structures that include kitchens. These units are limited to occupation by one or two persons who are disabled, 62 years of age or older– or both. Once this occupancy is complete, the structure may no longer be used for independent living. This is Program H5.A in the updated programs section. ---PAGE BREAK--- Housing H-19 Adopted by City Council 04/11/01 Evaluation of Past Performance – Programs 1989-2000 Program H5.E: Homeless Persons Facilities Designation In compliance with state housing law, the Zoning Code has been amended to include provisions permitting the development of emergency shelters and transitional housing facilities for the homeless in areas of the City designated for commercial uses and public facilities. This is Program H5.E in the updated programs section. Program H5.F: Transitional Housing Designation Section 91.12 of the Zoning Ordinance has been amended to establish specific standards for the development of transitional housing facilities in the R-2, R-3, C-2, C- 3 and Public Facilities zones. This program is addressed in Program H5.F in the updated programs section. Program H5.G: South Antelope Valley Emergency Services Program Under this program the City of Palmdale provides administrative funding to the South Antelope Valley Emergency Services program (SAVES). SAVE provides motel vouchers for homeless persons and food, clothing and referrals for homeless and very low-income Palmdale residents. This is an ongoing program that provided shelter vouchers to 279 households in 1999 and to 257 households in 2000. It is Program H5.D in the updated programs section. Program H5.H: Large Family Rental Unit Program The redevelopment agency considered the feasibility of reconfiguring units for large families when evaluating rental rehabilitation loan applications. This policy is intended to increase the supply of three and four bedroom rental units. This program has been eliminated from the current housing element. Due to the nature of Palmdale’s housing market, larger units are provided mainly by the ownership housing market. Families can afford to purchase homes in Palmdale’s single family housing stock for the price they would pay in rent for a three or four-bedroom rental unit. The City has two programs to aid first time homebuyers. One helps low income families purchase new mobile homes; the other provides down payment assistance to low income families for the purchase of a single family unit. (See Programs H1.E and H1.F in the updated programs section.) Program H5.I Handyworker Program The functions of this program are now performed by the Emergency Grant Program (see Program H2.B above) ---PAGE BREAK--- Housing Adopted by City Council H-20 04/11/01 Evaluation of Past Performance – Programs 1989-2000 Program H5.J Accessibility Guidelines This program was supposed to develop a single standard for meeting the multiple handicapped access requirements of the California Administrative Code, Title 24 and the 1991 federal Americans with Disabilities Act (ADA) and require that all new multifamily residential developments, including those serving low income or elderly households, conform to this handicapped access standard. According to the City’s Building Official, it is the California Attorney General’s opinion that cities should not give advice on ADA requirements since cities do not enforce them. Therefore the program proposed here and in H5.K below were not considered practical. The City’s Building and Safety Department does distribute information on Title 24 requirements as part of its review of all preliminary and formal development plans (see Program H5.I in the updated programs section). Applicants are advised that the City does not enforce ADA but that they (the developers) are responsible for compliance. In addition, the Building and Safety Department will evaluate the feasibility of developing a program for conducting ongoing inspections of accessibility in multifamily units under Program H5.H. Program H5.K Public Information Program on Access In cooperation with an appropriate agency, develop public information program on the guidelines of the 1991 American with Disabilities Act to ensure that both public and private organizations and individuals in the City of Palmdale understand the rights of disabled persons with respect to housing, transportation, public facilities and employment. (See H5.J for information on program performance) The City is considering the feasibility of a program that would inspect all multifamily buildings for handicapped accessibility requirements every one to two years. These buildings would have to comply with whatever the requirements were when the building was built. Fair housing laws require rental property owners to make reasonable accommodations to meet the needs of handicapped persons. This proposed program is H5.H in the updated programs section. Program H5.L: Section 8 Tenant Assistance This program is administered by the Housing Authority of the County of Los Angeles, which is part of the Los Angeles County Community Development Commission. The Housing Authority, which has an office in Lancaster, has issued 687 vouchers to Palmdale residents. According to Housing Authority officials, the waiting list for vouchers remains open but there is an eight to ten-year waiting period. ---PAGE BREAK--- Housing H-21 Adopted by City Council 04/11/01 Evaluation of Past Performance – Programs 1989-2000 Program H5.M: Special Needs Site Review The City has a site plan review process that reviews all proposed new construction projects to ensure that new special needs housing is located near needed services and transportation. See Policy H5.1.4 in Section X. Program H5.N: Child Care This program proposed that the City pass a Zoning Ordinance to facilitate the provision of family day care for six to ten children by home-based providers. The City did include Section 26.09 in the 1994 Zoning Ordinance setting forth standards and procedures for obtaining a permit to operate a day care center for between seven and 14 children under age 18 in single family residential districts. In 1998 the City began requiring large family day care facilities (up to 14 children) to obtain a permit from the City. The City currently issues 55 yearly permits for in-home child care providers. Additional permits may be processed as state licenses come up for renewal. Large family day care centers are permitted in zones A-1, R-1, R-2 and R-3 with administrative approval. Small family day care uses (1-8 children) are permitted as accessory uses in these same zones but with no regulation by the City. Therefore, the City has no information on the number of these day care providers. The City currently licenses commercial day care facilities and these facilities are permitted in all commercial zones by right and in A-1, R-2, R-3 and the M-3 zone with a conditional use permit. During the previous planning period, three day care centers were approved as part of the conditional use permit approval for new church facilities, although, as nonprofits, these centers are not required to obtain a City business license. This program is administered by the Planning Department and is no longer considered a housing program. GOAL H6 IMPLEMENT ENERGY AND WATER CONSERVATION MEASURES Program H6.A: Energy and Water Conservation Checklist In accordance with California Government Code Section 65591, the Water Conservation and Landscaping Act, the City has a Water Efficient Landscape Ordinance (Ordinance No. U-992) that includes a water efficiency worksheet. Energy and water provisions of proposed new development are reviewed as part of the landscape plan review. This is Program H6.A in the updated Programs Section. ---PAGE BREAK--- Housing Adopted by City Council H-22 04/11/01 Evaluation of Past Performance – Programs 1989-2000 Program H6.B: Xeriscape Program This is an ongoing policy that incorporates xeriscape as a condition of approval for all subdivisions and housing projects. It is Policy H6.1.3 in the updated programs section. Program H6.C: Desert Housing Type Demonstration Program The City adopted a Community Design Element in its General Plan that encourages architectural features, construction and plant materials and building orientation appropriate to the desert environment. This is no longer a program of the housing element. Program H6.D: Conservation Code Program The City’s Building and Safety Department enforces all Uniform Building Code and California Administration Code Title 24 conservation measures. This is Policy H6.1.4 in the updated programs section. Program H6.E: Energy Saving Modifications Assistance This program, which proposed cooperating with utility companies to inform the public about energy saving modifications for existing housing, is included with modifications as proposed program H6.B in the updated programs section. This program would post information about the Gas Company’s weatherization program and about energy and water conservation retrofit measures on the City’s website n the 2000-2005 programs section of the Housing Element. ---PAGE BREAK--- Housing H-23 Adopted by City Council 04/11/01 SECTION 3. POPULATION CHARACTERISTICS Population Palmdale is located at the south end of the Antelope Valley, about an hour’s drive north from downtown Los Angeles. In 1980 it was a small desert community of 12,277 people serving the surrounding aerospace and agricultural industries. But over the next two decades, Palmdale’s miles of vacant desert land supported the development of inexpensive single family homes to meet the needs of Angelenos in pursuit of affordable home ownership. The City ‘s population exploded between 1980 and 1990 with an increase over the 11 years of 463%. Population growth was fueled not just by housing production but also by annexation of surrounding land. The City grew from 45 square miles in 1983 to more than 103 square miles in 2000. There are an additional 72 square miles within the City’s Planning Area. Figure 1 is a map of the City’s present boundaries. Annual population increases remained high for the first five years of the 1990s, but by 1995 the profound recession gripping the state had begun to take its toll and population growth in Palmdale began to slow. Population growth fell from a high of more than 9,000 new persons in 1991 to fewer than 3,000 new persons in 2000. Nevertheless, over the decade the population of Palmdale increased by 76% while population in the County as a whole grew by only 11.5%. Table H-4 Population Growth in Palmdale, 1990-2000 Year Population Increase % Increase 1990 68,946 1991 78,154 9,208 13.4% 1992 84,459 6,375 8.2 1993 90,198 5,669 6.7 1994 98,791 8,593 9.5 1995 105,576 6,785 6.9 1996 112,002 6,426 6.1 1997 114,628 2,626 2.3 ---PAGE BREAK--- Housing Adopted by City Council H-24 04/11/01 Table H-4 Population Growth in Palmdale, 1990-2000 (Con’t) Year Population Increase % Increase 1998 117,115 2,487 2.2 1999 119,570 2,455 2.1 2000 122,392 2,822 2.4 Source: California Department of Finance, Report E-5. According to data provided by the California Department of Finance, Palmdale began the decade with a population of 68,946 and ended it with a population of 122,392. The number of households grew from 21,987 in 1990 to 35,659 in 2000. Table H-4 and Figure 2 show the increases in Palmdale’s population between 1990 and 2000. The line graph shows that population growth was steep in the early 1990s of the decade but began to flatten out toward the end of the decade Table H-4 also shows that population growth has begun to inch up again from 2,455 in 1999 to 2,822 in 2000. Housing production is beginning to heat up a little as well. According to the Department of Building and Safety, since August of 1999, permits for the construction of 860 units have been issued. If all these units are built in 2000, they will more than double the number built in 1999. If housing production continues to grow, Palmdale’s rate of population growth may increase over the next five years. Although most population growth in Los Angeles County is due to natural increase1 (the excess of births over deaths, excluding migration), affordable housing prices are the engine driving population increase in Palmdale. Within commuting distance of many employment centers in Los Angeles County, Palmdale’s various neighborhoods offer median home prices ranging from $89,000 to $159,000, compared to a median price of $202,000 for the county as a whole. Age Table H-5 compares the age distribution of Palmdale’s residents in 1990 and 1997. The 1997 data comes from a study with a small sample size and therefore may not be completely accurate. The major difference in the age structure is the shift in the age bulge from the 25-34 group who made up nearly 40% of the City’s population in 1990 to 1 Personal communication, California Department of Finance ---PAGE BREAK--- Housing H-25 Adopted by City Council 04/11/01 the 35-44 and 45-54 group who, in 1997, respectively made up 18.3% and 17.3% of the population. The proportion of children under age fourteen also appears to have decreased. This isn’t surprising since the parents have also gotten older and many may have completed their families. It is very important to remember when examining these proportions that according to the California Department of Finance, Palmdale’s population increased by 45,786 people between 1990 and 2000, so that the number of people in each age category is much larger in most cases, even if the age group’s proportion of the population is smaller. The only exception is the 25-34 age group which had 26,985 people in 1990 and 20,976 in 1997. The missing people in this age group are presumably the young householders who were discouraged by the recession from purchasing in Palmdale. The large increases in school-age children directly affects housing prices because in order to meet the need for new schools, the Palmdale school districts have imposed a greatly increased school impact fee on new construction in Palmdale. Table H-5 Palmdale Age Distribution, 1990 and 1997 Age Group 1990 Census 1997 (est.) 0 - 4 13.6% 12.1% 5 - 13 22.4 17.4 14 - 17 3.6 5.8 18 - 20 3.6 3.1 21 - 24 5.4 4.5 25 - 34 39.2 18.3 35 - 44 7.1 17.3 45 - 54 2.4 10.5 55 - 64 2.1 5.2 65 - 74 3.1 3.6 75 - 84 1.3 1.8 85 + 0.3 0.5 Median Age 28.0 29.0 Source: 1990 Census and Alfred Gobar Associates ---PAGE BREAK--- Housing Adopted by City Council H-26 04/11/01 Ethnicity In 1990, 67% of Palmdale’s population was White, 22% was Latino, 6% was African American, 0.6% was American Indian, 4% was Asian and 0.4% was Other.2 There are no comparable data on ethnicity for 2000. In 1997, a labor force survey conducted by Alfred Gobar Associates compiled some data on ethnicity in Antelope Valley, but the data can’t be exactly compared to 1990 because the 1997 study uses somewhat different categories. The 1997 Gobar Study did find that 31.5% of the survey respondents were Latino, a substantial increase since 1990. This is not surprising since the proportion of Latinos in Los Angeles County continues to grow. In 1990 37.3% of the County’s population was Latino; in 2000, California Department of Finance estimates that 45.6% of the County population is Latino.3 One of the ways to tell how a community’s ethnicity is changing is to look at pupil ethnicity data collected by school districts. Comparison of ethnicity data from local school districts collected in 1989-90 and 1999-2000 shows that the ethnicity of children enrolled in elementary, intermediate and high schools in Palmdale has changed considerably over the decade. Table H-6 shows that in the 1989-90 school year, 24% of children in Palmdale school districts were Latino, 62.3% were White, 7.0% were African American, 4.4% were Asian and Pacific Islander and 1.4% were American Indian. According to enrollment data provided by the Palmdale, Westside Union and Antelope Union School Districts, by October 1999, the ethnicity of pupils was 38.8% White, 38.8% Latino, 17.5% African American, 3.8% Asian and Pacific Islander, and 0.9% American Indian. The school district also included a new category, “multiple race/ethnicity,” and 0.4% of children were in this category. 4 In October 1999, the three school districts had a combined enrollment of 25,516. They comprised 25 schools including four middle schools, five elementary schools that go up to 8th grade, 17 elementary schools that go up to 6th grade and two high schools. 2 This calculation comes from Database C90STF3A, Summary Level, State–Place, Hispanic Origin by Race. Data was accessed from the Census Bureau website, http://venus.census.gov/cdrom/lookup/965513219 3 California Department of Finance, Report P-1. 4 The picture presented by this data is skewed since it excludes school age children in private schools or who attend a public school located outside of Palmdale. ---PAGE BREAK--- Housing H-27 Adopted by City Council 04/11/01 Table H-6 Ethnicity in Palmdale, 1990 and 2000 Race/Ethnicity 89-90 School Enrollment 99-00 School Enrollment 1998 DOF Projections- Countywide* Latino (Hispanic) 24.0% 38.8% 45.6% White 63.2 38.8 32.1 African American 7.0 17.5 9.4 Asian/Pacific Islander 4.4 3.8 12.6 American Indian 1.4 0.7 0.3 Mixed 0.4 Source: 1989 and 1999 Palmdale, Westside and Antelope Valley School Districts and California Department of Finance 1990-1998 Population Projections *Data for all age groups Income Table H-7 compares household income in 1990 and 1997. The income data for 1997 comes from a telephone survey of Antelope Valley residents conducted by Alfred Gobar Associates. According to the Gobar survey, the 1997 median income of Palmdale households was $49,600 while median income for the Antelope Valley as a whole was $40,100. Comparable data for the county and state are not available. The Current Population Survey conducted by the U.S. Census bureau puts 1996-1997 median income for California as a whole at $39,699. Since median income rose from $41,974 in 1990 to $49,600 in 1997, one would expect to find larger proportions of households in the higher income categories. Even so, it is surprising to note that the proportion of households earning $100,000 or more increased more than 500% while the proportion of households in the lowest income group stayed the same. In other areas of the county, increases in the low-wage service and retail jobs have moved a substantial number of households into lower income categories at the same time that incomes for higher income groups have grown steeply. ---PAGE BREAK--- Housing Adopted by City Council H-28 04/11/01 Table H-7 Income Distribution in Palmdale, 1990 and 1997 Household Income Percent of Households 1990 Percent of Households 1997 Less than $20,000 18.5% 18.8% $ 20,000 - 29,999 12.5 6.8 30,000 - 39,999 15.8 14.3 40,000 - 49,999 15.0 10.5 50,000 - 74,999 26.6 28.6 75,000 - 99,999 7.7 10.5 100,000 plus 1.6 10.5 Source: 1990 Census and Alfred Gobar Associates Poverty and Public Assistance Data provided by the Los Angeles County Department of Public Social Services (DPSS) show that in February 2000 21,875 people including 14,000 children had incomes low enough to entitle them to some form of public assistance. These people made up 17% of Palmdale’s population. In January 2000 there were 2,685 families with 7,672 family members receiving cash assistance from the CalWORKs Program, 338 employable and 140 unemployable individuals receiving General Relief, 5,069 recipients of Medi-Cal only, 704 recipients of food stamps only, and 898 persons receiving in-home supportive services. This last group could include frail elderly persons and severely ill or disabled children or adults of any age. Sixty-four percent (64%) of all recipients of DPSS funds were under age 18. Persons receiving only food stamps or only Medi-Cal could be impoverished elderly persons or children of the working poor, that is, families who work full-time but earn so little that they and/or their children are still entitled to some public assistance. The California Department of Health Services is currently engaged in a campaign to enroll all eligible children in Medi-Cal and has designed several programs to extend Medi-Cal benefits to low-wage working families. Employment by Industry Historically Palmdale’s economy was based on aerospace with a strong role played by housing construction and retail. The economy was hard hit by the recession of the early and mid-1990s when restructuring of defense spending reduced or relocated many ---PAGE BREAK--- Housing H-29 Adopted by City Council 04/11/01 aerospace jobs, and an overall economic slowdown sent housing prices and demand plummeting. Like most of the rest of the state, service jobs have become a much larger part of the economy. In 1990 26.7% of Palmdale’s jobs were in the service sector; in 1997, 32.3% of jobs were service jobs. As might be expected from the severe drop in housing production, construction jobs decreased between 1990 and 1997 from 7.0% of jobs to 2.8%. The proportion of jobs in the wholesale/retail category dropped a little while work in the government sector went up. According to the Gobar study, the increase in government employment was due to additional school district employees, a state prison in Lancaster and a new Sheriff’s Department facility. Table H-8 compares employment by industry in Palmdale in 1990 and 1997. Table H-8 Employment by Industry 1990 and 1997 Industry 1990 1997 Agriculture 0.8% 1.0% Mining 1.4 1.0 Construction 7.0 2.8 Manufacturing 22.3 20.6 Transportation 4.3 4.9 Finance, Insurance, Real Estate 5.3 5.6 Wholesale/Retail 25.2 21.9 Services 26.7 32.3 Government 7.0 9.9 100 100 Source: Alfred Gobar Associates, 1997 The Greater Antelope Valley Economic Alliance is now optimistic about economic development. Among a number of new enterprises, SR Technics, the maintenance and modifications arm of SwissAir, announced in December 1999 that it will locate its Western Hemisphere facility at the Palmdale Regional Airport, bringing 6,000 new jobs to Palmdale in the next five years. Eight new retailers opened their doors at Palmdale’s Antelope Valley Mall and construction was completed on a new 18-hole golf course in ---PAGE BREAK--- Housing Adopted by City Council H-30 04/11/01 Palmdale’s Rancho Vista development. Building permits issued between August 1999 and June 2000 are more than double the number issued in the preceding year. Unemployment Unemployment rates are not available for places smaller than counties. However, since many Palmdale residents work outside the City, they are affected by employment levels countywide. The Los Angeles County unemployment rate was 6.9% in 1990, but by 1992 it had risen to 9.8%, the highest in the nation. Gradually, the County’s economy recovered and by July 2000 unemployment countywide had fallen to 5.2%, just a fraction higher than the state rate of 5.0%. However, despite the low unemployment rate, poverty persists, even among working families, because much of the job growth has been in the low-wage service and retail sectors. These jobs, paying less than $10 per hour, don’t provide full-time workers with enough income to lift their families out of poverty. Commuting The Gobar study also asked respondents about their commuting patterns. In 1990, 18.9% of Palmdale residents drove between 30 and 59 minutes to work while 34.2% were driving an hour or more one way. Among respondents to the 1997 Gobar study in Palmdale zip codes, 25% had a commute of between 31 and 60 minutes while 26% were driving over an hour to work. The time categories are not completely comparable so it isn’t possible to draw conclusions from this data about possible changes in commuting patterns. Unfortunately, the method for commuting has not changed--81% of Palmdale workers still drive alone to their jobs; only 14% use a carpool, vanpool or the bus. ---PAGE BREAK--- Housing H-31 Adopted by City Council 04/11/01 SECTION 4. HOUSING CHARACTERISTICS In 1980, Palmdale had only 4,658 housing units. In 1990, there were 24,439 units and by 2000 the California Department of Finance estimates that Palmdale has 39,468 housing units, an increase of 747% since 1980. Between 1990 and 2000 the recession gradually slowed the rate of increase with 3,252 new units in 1991 but only 357 new units in January 2000. Although 15,029 units were built during the decade, the percentage increase between 1990 and 2000 was only 76%. Nevertheless, this increase was substantial considering that housing growth in the county as a whole was only 11.5%. The City’s building permit data now indicate a gradual increase in production, with 640 units completed by the end of 2000. Table H-9 and Figure 3 chart the annual changes in Palmdale’s housing stock over the last decade. Table H-9 Annual Increases in Palmdale’s Housing Units 1990-2000 Building Type Single Family Detached Attached (condo) 2-4 Units 5 or more Units Mobile Homes Total Annual Increase Year 1990 16.319 488 731 4,914 1,987 24,439 1991 19,367 496 816 4,960 2,052 27,691 3,562 1992 21,023 496 853 4,960 2,037 29,369 1,678 1993 23,021 496 866 4,996 2,042 31,421 2,052 1994 25,332 513 873 5,337 2,010 34,065 2,644 1995 26,882 565 869 5,497 1,967 35,780 1,715 1996 28,761 574 914 5,522 1,969 37,736 1,956 1997 29,314 574 914 5,522 1,969 38,[PHONE REDACTED] 29,748 574 914 5,522 1,969 38,[PHONE REDACTED] 30,132 574 914 5,522 1,969 39,[PHONE REDACTED] 30,489 574 914 5,522 1,969 39,468 357 Source: California Department of Finance, Report E-5 ---PAGE BREAK--- Housing Adopted by City Council H-32 04/11/01 Nearly all the 15,029 units constructed in Palmdale during the 1990s were single family houses; over the decade, only 877 multifamily units were built, including 608 units in buildings of five units or more, 183 units in projects of two to four units and 86 attached or condominium units. The number of mobile homes shrank very from 1,987 in 1990 to 1,969 in 2000. Overall, in 2000 there were 30,489 single family homes, 574 attached (condo units), 6,436 multifamily units, and 1,969 mobile homes. Palmdale’s current housing stock is made up of 77.2% single family units, 1.5% condo units, 16.3% multifamily units and 5% mobile homes. This contrasts greatly with the County as a whole where only 48% of the housing stock is single family homes and 43% is multifamily. Tenure Current year 2000 data on housing tenure in the County overall is not available. In 1990, 52.8% of the County’s occupied units were occupied by renters and 49.2% were owner- occupied. In Palmdale, in 1990, 70.3% of the 21,987 occupied units (15,457) were owner-occupied and 29.7% ( 6,530) were renter-occupied. In January 2000, only 16.3% of Palmdale’s housing units were in multifamily buildings; however, a number of units in the single family housing stock may also be rentals. In 1990 9.9% of Palmdale’s single family homes were renter-occupied. Vacancy According to the California Department of Finance (DOF), Report E-5, the estimated vacancy rate in Palmdale in January 2000 was 9.95%, just lower than the vacancy rate in 1990 of 10.03%. This contrasts sharply with the countywide vacancy of only 5.51% and indicates that housing demand in Palmdale is relatively weak. It is likely that the Palmdale vacancy rate is unevenly distributed among the different types of units, but it is not possible to tell because DOF does not distinguish between vacancies in ownership and rental housing. There could still be high vacancies in the single family stock due to foreclosures and abandonment. There could also be high vacancies in poorly maintained multifamily buildings. Data obtained from RealFacts in August 2000 on six large market-rate rental projects with 1,534 total units sets the overall occupancy rate in these units at 94.9%, indicating a fairly high demand. On the other hand, the manager of several projects with federal Section 8 project-based subsidies expressed surprise that the waiting list for their very low cost units has disappeared, indicating a drop in demand. It is ironic that while there may be high vacancy rates in Palmdale’s rental housing, the area’s social service agencies have found it nearly impossible to obtain housing for their extremely low income clients. ---PAGE BREAK--- Housing H-33 Adopted by City Council 04/11/01 Figure 3 here (line graph of housing growth) ---PAGE BREAK--- Housing Adopted by City Council H-34 04/11/01 Housing Age Table H-10 shows Palmdale’s housing stock by year built. Although nearly all (85%) of the City’s housing units were built after 1980, improving housing condition in selected neighborhoods is the focus of the City’s housing programs. Palmdale regards housing condition as a matrix of issues and several City programs coordinate the activities of key public agencies to improve older neighborhoods plagued by inadequate infrastructure, deteriorating housing, and poor maintenance and management practices. The City has identified a number of “focus neighborhoods” where the Neighborhood Improvement Program marshals resources from a number of different agencies and funding sources for infrastructure and housing repairs. Two such programs have already been implemented with improvements to 304 units. A third focus neighborhood was identified and approved on March 8, 2000. This neighborhood is located north of Palmdale Blvd. and south of Avenue Q and is bounded by Division Street and Fifth Street East. The area contains more than 500 single family houses and 50 multifamily complexes. Neighborhood issues identified by residents include crime, blighted structures (both vacant and occupied), sewers and drainage, sidewalks and lighting. This project is expected to last for two to three years. Although other areas also need improvements, the criteria for identifying a fourth focus neighborhood have not yet been identified. Table H-11 is a summary of housing conditions in selected areas. Table H-10 Palmdale’s Housing Stock by Year Built1 Year Built Number of Units Percent 1990-2000 15,029 38.1% 1980-1989 18,473 46.8% 1970-1979 2,092 5.3% 1960-1969 1,317 3.3% 1950-1959 2,198 5.6% 1940-1949 218 0.6% Before 1940 141 0.4% Total 39,468 Source: 1990 Census and California Dept. of Finance, Rpt. E-5 1 Census data is now 10 years old so some of the older units may have been demolished since 1990. ---PAGE BREAK--- Housing H-35 Adopted by City Council 04/11/01 TABLE H-11 Housing Conditions Survey 2000 City of Palmdale SURVEY AREA # RESIDENTIAL PROPERTIES WITHIN SURVEY AREA TOTAL BY UNIT TYPE IN SURVEY AREA # PROPERTIES WHERE MODERATE REHAB NEEDED # PROPERTIES WITH DILAPIDATED UNITS PERCENTAGE OF PROPERTIES REQUIRING REHAB 1 369 369 SFR 136 23 43% 2 398 397 SFR 298 2 75% 3 304 53 SFR - 135 MFR 125 5 43% 4 150 85 SFR - 956 MFR 120 7 85% 4.1 & 4.2 142 50 SFR - 186 MFR 127 1 90% 5 289 280 SFR - 143 MFR 171 1 59% 6 531 415 SFR - 68 MFR 178 0 33% 7 169 169 SFR 81 4 50% 8 840 830 SFR - 18 MFR 427 0 51% 9 218 145 SFR - 929 MFR 122 0 60% 10 113 107 SFR - 80 MFR 70 6 67% 11 320 320 SFR 168 4 53% 12 110 110 SFR 58 0 53% 13 296 296 SFR 105 0 35% 14 461 461 SFR 192 0 42% 15 405 405 SFR 51 0 12% 16 92 92 SFR 36 0 39% 17 272 272 SFR 136 1 50% 18 93 93 SFR 41 0 44% 19 128 128 SFR 31 0 24% 20 78 78 SFR 5 0 6% TOTAL SURVEYED 5,778 PROPERTIES 5,155 SFR - 2,515 MFR 2,678 54 47% TOTAL NON- SURVEYED AREA 25,908 SFR 3,921 MFR 1,969 MH TOTAL* 31,063 SFR 6,436 MFR 1,969 MH 16% 39% Not Surveyed *Official State Estimates as of January 1, 2000 ---PAGE BREAK--- Housing Adopted by City Council H-36 04/11/01 Figure 4 Map of Housing Condition Survey Areas ---PAGE BREAK--- Housing H-37 Adopted by City Council 04/11/01 Housing Condition In July 2000, Palmdale City staff conducted a “windshield” survey of 5,778 properties in the City’s oldest areas. These are properties in the areas of the City has identified as current or future target neighborhoods for the Neighborhood Improvement Program. The results of this survey are tabulated in Table H-11. The maps in Figures 4A and 4B show the location of the areas surveyed. Properties classified as needing moderate rehabilitation exhibited such conditions as deteriorated roofs, badly faded paint, stained stucco, yards void of nearly all landscaping or yards with broken fences. Units in very poor condition needing either substantial rehabilitation or demolition were classified as dilapidated. City staff found that 45% of the properties surveyed needed moderate rehabilitation while not quite 1% were dilapidated. There are 5,155 single family and 2,515 multifamily units on the properties included in the survey, representing 19.4% of all Palmdale units. It is important to note that Table H-11 tabulates the number of properties, not the number of units needing rehabilitation. While there may be properties in poor condition in other parts of Palmdale, the City’s oldest housing is concentrated in the survey areas. In the City’s oldest neighborhoods, housing condition, poor property management, inadequate infrastructure and crime all interact to cause continued decline of both the physical and social environment. In response, the City has developed a multi-year Neighborhood Improvement Program that identifies areas needing improvement and provides a coordinated multi-agency response that includes home improvement loans, Household Size In 1990, there were 3.14 persons per unit in Palmdale according to the Census and 3.13 according to the California Department of Finance (DOF). By January 2000, DOF estimated that there were 3.43 persons per household. This change is probably attributable to an increase in family size, although there may be some overcrowding in the multifamily housing stock since most apartments in Palmdale have only one or two bedrooms. Palmdale households are larger than households in the County as a whole where there are 3.14 persons per unit. Overcrowding The Census defines overcrowding as 1.01 or more persons per room excluding the kitchen and bathroom. A unit is considered severely overcrowded if there are 1.51 or more persons per room. In 1990, 9.1% of Palmdale households were overcrowded compared to 19.1% Countywide and only 3.5% of units were severely overcrowded while Countywide 12.5% of units were overcrowded. Overcrowding indicates a problem with housing affordability. Households needing three or four bedrooms ---PAGE BREAK--- Housing Adopted by City Council H-38 04/11/01 squeeze into a two-bedroom apartment because they can’t afford the larger unit. Or two families reduce expenses by sharing an apartment or single family home. In 1990, 24.3% of rental units had more than two bedrooms. Some of these units were in subsidized housing projects, while others were probably single family homes. The remaining rental housing stock in Palmdale has one or two bedrooms. If the number of families seeking rental housing in Palmdale has increased substantially over the decade, then the 2000 Census may show an increase in overcrowding due to the size of the City’s rental housing units. Lead-Based Paint In 1978, the use of lead in paint was banned because lead is toxic to humans. Housing units constructed before 1978 may be hazardous to children under age six and pregnant women. The hazard is created by peeling lead-based paint on painted building components or in exposed soil and by leaded dust created when windows and doors coated with lead-based paint slam into their frames. The hazard can be controlled by removing the lead-based paint, installing new doors and windows or repairing and repainting deteriorated painted surfaces. Intact lead-based paint is not considered hazardous. Blood lead levels above 10 micrograms per deciliter can cause permanent neurologic damage to children younger than six and to fetuses. When a child has two consecutive blood lead tests of 15 micrograms per deciliter or higher or one reading of 20 micrograms per deciliter, the child is considered a “case” under the criteria of the federal Centers for Disease Control. The blood lead level is reported to the Childhood Lead Poisoning Prevention Program of the Los Angeles County Department of Health Services (DHS). DHS nurses and environmental health specialists provide case management for the child, investigate the source of poisoning and order corrective action. In compliance with federal law, sellers and landlords must disclose known lead-based paint and lead-based paint hazards, provide available reports to buyers or renters and give buyers and renters the pamphlet, developed by EPA, HUD, and the Consumer Product Safety Commission (CPSC), titled Protect Your Family From Lead in Your Home. This brochure is available on the web at www.hud.gov/lea/leadhelp.html. It is critically important to use lead-safe work practices in pre-1978 buildings. Table H-10 shows that 5,853 units in Palmdale were constructed before 1980. The 2,557 units built before 1960 are the units most likely to contain paint with high concentrations of lead and to be in poor condition. Data provided by DHS show that since 1990, 42 Palmdale children under age six have been identified with elevated blood lead levels. At present, DHS is managing eight open cases of lead poisoning in Palmdale children under age six. ---PAGE BREAK--- Housing H-39 Adopted by City Council 04/11/01 Mobile Home Parks Mobile homes are an important housing type in Palmdale, comprising 5% of the housing stock. There are 10 mobile home parks in Palmdale with a total of 1,969 mobile home units. Three of the parks are owned and operated by LINC which purchased the parks with assistance from the City’s redevelopment housing set-aside. Twenty percent of the 786 spaces in these three parks (157 spaces) are set aside for low and moderate income households. The parks owned by LINC have been rehabilitated. In addition, assistance for purchase of mobile homes has been provided to 74 low and moderate income households. Despite improvements in the facilities, these three parks continue to have very high vacancy rates and have received additional assistance from the City. Because mobile homes are an important source of affordable housing for Palmdale residents, mobile home space rents are governed by a rent control ordinance. Table H-12 Mobile Home Parks DOMENIC’S MOBILE HOME ESTATES 38015 30th Street East Palmdale CA 93550 947-4274 Number of Spaces: 33 Year Opened: 1964 Subject to Rent Control: Yes Rents: $285 Last Board Decision: Feb 1996 BOULDERS AT THE LAKE (formerly ROLLING HILLS ESTATES) 1030 East Avenue S Palmdale CA 93551 273-8154 Number of Spaces: 223 Year Opened: 1985 Subject to Rent Control: No Rents from $299 GRECIAN ISLE MOBILE HOME COMMUNITY 4444 East Avenue R Palmdale CA 93550 947-4444 Number of Spaces: 157 Year Opened: 1972 Subject to Rent Control: Yes Rents: $300-$350 Last Board Decision: Nov 1999 PALMDALE MOBILE HOME PARK 38015 65th Street East Palmdale CA 93550 Number of Spaces: 47 Year Opened: Subject to Rent Control: Yes Last Board Decision: April 1995 SIERRA VISTA MOBILE HOME ESTATES 3255 East Avenue R Palmdale CA 93550 947-7400 Number of Spaces: 298 Year Opened: 1977 Subject to Rent Control: Yes Rents: $295 Last Board Decision: Sept. 1997 BOULDERS AT THE RANCH #2 (fomerly PONDEROSA VISTA) 5200 Entrar Drive Palmdale CA 93551 943-2409 Number of Spaces: 206 Year Opened: 1988 Subject To Rent Control: No Rents: $299 ---PAGE BREAK--- Housing Adopted by City Council H-40 04/11/01 Table H-12 Mobile Home Parks (Con’t) SAGETREE VILLAGE MOBILE HOME COMMUNITY 3524 EAST AVENUE R PALMDALE CA 93550 947-6636 Number of Spaces: 330 Year Opened: 1971 Subject to Rent Control: Yes/No Rents: $ 375 Last Board Decision: November 1994 THOUSAND ELMS MOBILE LODGE 37311 North 47th Street East Palmdale CA 93550 285-4555 Number of Spaces: 216 Year Opened: Old Section 1954 New Section 1966 Subject to Rent Control: Yes Rents: $170-$210 Last Board Decision: December 1990 BOULDERS AT THE RANCH #1 (formerly ALMOND HEIGHTS MOBILE ESTATES) 40701 Rancho Vista Boulevard Palmdale CA 93551 943-2553 Number of Spaces: 358 Year Opened: 1985 Subject to Rent Control: No Rents: $299 JOSHUA VIEW MOBILE HOME PARK 6150 East Avenue T Palmdale CA 93550 533-3300 Number of Spaces: 73 Year Opened: Subject to Rent Control: Yes Rents: $255-$335 ---PAGE BREAK--- Housing H-41 Adopted by City Council 04/11/01 SECTION 5. HOUSING NEEDS AND RESOURCES A. Income Definitions In this section several different sets of terms and categories are used to describe household income levels. Federal definitions The federal government now considers the needs of households at five different income levels, extremely low income, low income, moderate income, middle income and other. Extremely Low-Income: An extremely low income household is one earning 30% or less of area median income. In 2000, a family of four earning $15,650 is considered extremely low income. Low-Income: A low-income household earns between 31% and 50% of area median income. The income limit for a family of four in 2000 is $26,050. Moderate-Income: A moderate income household earns between 51% and 80% of median income. The income limit for a moderate income four-person family in 2000 is $41,700. Middle Income: A middle income household is one earning between 81% and 95% of area median income. Middle income in 2000 is between $41,700 and $49,495. Median Income: This is the point at which half of all households earn less and half earn more. In 2000, HUD has set the median income for Los Angeles County at $52,100 for a family of four. Other: Households earning more than 95% of median income are described as “other.” Local housing authorities are now expected to reserve some of their Section 8 vouchers for extremely low-income households, that is, those earning 30% or less of median income. In 2000, the Housing Authority of Los Angeles County has reserved 75% of newly issued vouchers for households in this category. The federal low-income housing tax credit program administered by the state’s Tax Credit Allocation Committee sets affordable rents at 60% of median but gives additional application points to projects that target rents to households of even lower income. ---PAGE BREAK--- Housing Adopted by City Council H-42 04/11/01 State Definitions The State of California uses several sets of definitions. For the Housing Element, regional councils of government, including the Southern California Association of Governments (SCAG), calculate future housing needs at four income levels--very low (50% or less of median income), low (51% to 80% of median income), moderate (81% to 120% of median income) and high (more than 120% of median income)--but use the five above-listed federal categories in their calculations of existing need. Redevelopment law also uses the income categories used by SCAG. The state density bonus law makes provisions for housing affordable to households earning either 50% or 60% or median income. And the housing programs administered by the California Department of Housing and Community Development use the categories created by the federal government. In the following discussion, both the percent of median income and the income category will be provided to avoid confusion. In 2000, the area median income for Los Angeles County set by HUD is $52,100. Cost Burden The federal government also sets standards for the amount a household should pay for housing. According to current standards, households should pay no more than 30% of their gross income for rent or mortgage including utility costs. Households paying more than 30% of income for housing are considered cost burdened and households paying 50% or more for housing are considered extremely cost burdened. B. Regional Housing Needs Assessment Future Needs California housing element law requires regional councils of governments throughout the state to periodically make projections of anticipated growth in employment and population within the area they serve. Based on this projection, the councils calculate a fair share of the need for new housing in each jurisdiction of their member counties. In 1998 SCAG calculated the Regional Housing Needs Assessment, assigning a portion of future housing units at four income levels to the City of Palmdale. State housing element law requires Palmdale to identify sufficient land, appropriately zoned, to accommodate the housing growth estimated by SCAG. In the 7.5 years between 1998 and 2005, Palmdale’s fair share of new housing construction is: ---PAGE BREAK--- Housing H-43 Adopted by City Council 04/11/01 Table H-13 Future Housing Needs According to SCAG,1998-2005 (RHNA) Income Level Number of Units Percent Very Low (50% or less of median) 1,974 20% Low (51% to 80% of median) 1,521 15% Moderate (80% to 120% of median) 2,487 25% Above Moderate (>120% of median) 3,895 39% Total 9,878 Source: Southern California Association of Governments Median income in Los Angeles County in 2000 is $52,100. In the SCAG income categories, a family of four earning between 80% and 120% of the median income earns between $41,700 per year and 62,520 per year. A low-income family of four earns between $25,050 and $41,700 and a very low-income family of four earns $25,050 or less per year. SCAG also calculates the existing need for housing in each jurisdiction, basing this assessment on the census data that shows how many households are overcrowded or are paying more than 30% of their incomes for rent. The question for Palmdale is whether the housing production machinery that built 15,029 units between 1990 and 2000 despite a severe recession can be revved up to produce nearly 10,000 more units in the next five years. There are signs of a very modest recovery with 860 units scheduled for completion by the end of 2000, of which about 500 are single family homes. But with only 741 units built in 1998 and 1999 combined, Palmdale would have to build 2,069 units a year for the next four years in order to meet SCAG’s projections. In the late 1980s or early 1990's that would have been easy, but even if demand continues to grow, it still may take a few years for production capacity to catch up. Existing Needs SCAG has also estimated the existing housing needs of Palmdale owners and renters by income group. Table H-14 shows the current distribution of Palmdale households by income. ---PAGE BREAK--- Housing Adopted by City Council H-44 04/11/01 Table H-14 Income Distribution of Palmdale Households 1998 <30% 30% - 50% 50% - 80% 80% - 95% >95% Total Renters 2,334 1,790 2,095 1,006 3,144 10,369 Owners 1,031 1,370 3,338 2,512 16,369 24,620 Total 3,365 3,160 5,462 3,518 19,513 34,989 Source: Southern California Association of Governments Table H-15 Overpayment 1998 <30% 30% - 50% 50% - 80% 80% - 95% >95% Total Renters 1,794 1,423 1,019 209 122 4,567 Owners 776 981 2,215 1,586 4,102 9,660 Total HH 2,569 2,403 3,234 1,796 4,225 14, 227 Source: Southern California Association of Governments Table H-16 Overcrowding 1998 <30% 30% - 50% 50% - 80% 80% - 95% >95% Total Renters 394 445 347 130 274 1,590 Owners 11 37 362 179 477 1,065 Total HH 405 482 708 309 751 2,655 Source: Southern California Association of Governments In addition to projecting future housing needs by income group, SCAG has estimated the number of households in Palmdale who are overpaying for housing, overcrowded or both. Table H-15 above shows that three-quarters (76%) of all Palmdale households earning 50% or less of median income are overpaying for housing costs. After paying for housing, these 4,972 households have very little income left for all their other needs such as food, clothing, utilities, medical care and transportation. They are also those most at risk of losing their housing in the event of job loss, divorce, illness or medical emergency. Table H-16 shows the number of households that are overcrowded. ---PAGE BREAK--- Housing H-45 Adopted by City Council 04/11/01 C. Housing Costs Versus Ability to Pay Rental Housing Compared to the City of Los Angeles where the rent for a two-bedroom apartment can be $1,000 per month or more, rents in Palmdale are relatively affordable. Data provided by RealFacts in August 2000 show the following rents: Table H-17 Average Rents in Palmdale, August 2000 Unit Mix # of Units Average Low Rent Average High Rent Average Rent Income to Afford 1bdrm/1bath 373 $473 $485 $477 $19,080 ( 9.17/hr) 2bdrm/1bath 454 566 572 568 22,720 (10.92/hr) 2bdrm/2bath 486 573 580 576 23,040 (11.08/hr) 3bdrm/2bath 211 648 674 657 26,280 (12.63/hr) Total 1,524 Source: RealFacts, Novato, CA RealFacts surveyed six properties of 100 or more units. The occupancy rate in these buildings was 94.9% and they were built between 1977 and 1986. Table H-17 shows that the one-bedroom rents are affordable to households earning $19,080 or more per year ($9.17 per hour) and would be comfortable for one or two persons or even a family with a young child, but families needing two bedrooms or more need at least $22,720 a year ($10.92 per hour) and the three-bedroom unit requires an income of at least $26,280 a year ($12.63 per hour). Even a one-bedroom unit is too expensive for individuals or families living on the incomes provided by CalWORKS, Supplemental Security Income, or disability. Most of these households have incomes of only about $600 or $700 per month. These individuals and families have to pay more than 30% of their incomes for rent or double up with another family. They are vulnerable to losing their housing altogether. Palmdale’s rental housing is also too expensive for workers who earn less than $9.17 per hour. Many full-time workers in restaurant, janitorial, retail and child care jobs earn only about $7.50 an hour. Their annual income is $15,600 a year. Minimum wage ---PAGE BREAK--- Housing Adopted by City Council H-46 04/11/01 workers working in industries such as fast food are paid $5.75 per hour, earning only $11,960 per year. While the “fair market rent” paid by the Section 8 tenant assistance program is now lower than the majority of market rents in the City of Los Angeles, Section 8 voucher rents set by the Housing Authority of Los Angeles County are higher than most market rents in Palmdale. The Housing Authority usually surveys rents in the area before approving rent levels in a particular community so the rents actually approved by the Authority in Palmdale may be lower than in other areas. The County Housing Authority does not publish the rent levels by community or area. According to the Housing Authority of the County of Los Angeles there are only 687 Section 8 tenant assistance vouchers in Palmdale and, although the waiting list is open, it may take eight to ten years to obtain a voucher. Section 8 vouchers are portable and may be used anywhere in Los Angeles County. Table H-18 Section 8 Fair Market Rents, 2000 Bedroom Size Rent 0 Bedroom $56 1 Bedroom 666 2 Bedroom 843 3 Bedroom 1,136 4 Bedrooms 1,356 5 Bedrooms 1,560 Source: Housing Authority, County of Los Angeles Ownership Costs Palmdale’s phenomenal growth over the last 20 years was the result of its ability to provide affordable ownership housing to the County’s moderate-income households. In 1990, the median price of a home in Palmdale according to the Census was $149,700. In April 2000, according to information from Dataquick published in the Los Angeles Times on May 28, 2000, median home prices in Palmdale ranged from $89,000 in zip code 93550, to $101,000 in zip code 93552 and $159,000 in zip code 93551. In Table ---PAGE BREAK--- Housing H-47 Adopted by City Council 04/11/01 H-19, sales data from First American Real Estate Solutions for the first six months of 2000 shows that there are still plenty of affordable homes in Palmdale. Table H-19 Home Sales in Palmdale January - June 2000 Range Number of Sales Mean Price Percent 0 - $49,999 19 $ 35,048 1.2% 50,000 - 74,999 246 64,098 15.4% 75,000 - 99,999 428 86,034 26.8% 100,000 - 124,999 305 110,792 19.1% 125,000 - 149,999 185 135,248 11.6% 150,000 - 174,999 153 161,604 9.6% 175,000 - 199,999 125 183,632 7.8% 200,000 - 224,999 58 209,810 3.6% 225,000 - 249,999 21 235,325 1.3% 250,000 - 299,999 32 266,422 2.0% 300,000 - 249,999 20 324,675 1.3% 350,000 - 399,999 4 365,011 0.3% 1,596 Source: First American Real Estate Solutions During the first six months of 2000, three quarters of all units sold were priced at or below $149,000. A household earning the median income for a family of four-- $52,100--could easily afford houses at or below this price with a downpayment of $15,000. A family of four earning 80% of County median income or $41,700 could afford a house priced at $109,00 with a $102,000 loan and a down payment of $6,900 or a house priced at $115,000 with a loan of $105,000 and a downpayment of $10,000. Table H-19 shows the number of sales of homes at various prices in Palmdale in the first six months of 2000 while Table H-20 shows the incomes needed and payments for those homes. Of all 1,596 homes sold during the first six months of the year, 1,183 or 74% were affordable to households earning $51,200 or less. ---PAGE BREAK--- Housing Adopted by City Council H-48 04/11/01 Table H-20 Qualifying Incomes for Palmdale Homes1 Average Sales Price Loan Amount Down Payment Payment Income to Qualify $ 35,048 $ 31,543 10% $ 367 $ 15,728 64,098 57,688 10% 547 23,434 86,034 77,431 10% 734 31,454 110,792 99,713 10% 945 40,505 135,248 121,723 10% 1,153 49,446 155,000 139,500 10% 1,322 56,667 161,604 145,444 10% 1,377 59.081 183,632 165,269 10% 1,567 67,135 194,000 179,600 10% 1,655 70,925 209,810 188,829 10% 1,636 69,223 235,325 188,260 20% 1,812 77,641 266,422 213,138 20% 2,051 87,902 324,675 259,740 20% 2,500 107,121 365,011 292,009 20% 3,346 143,386 Source: America First Real Estate Solutions, SCANPH and Karin Pally Associates The data confirm that Palmdale can offer ample homeownership opportunities to the County’s moderate and median income families. Given the sharp rise in prices throughout the County, there should be a continuing demand for new homes in Palmdale. Once the recession-battered housing industry increases its production capacity, Palmdale should begin growing substantially again. However, it is unlikely that the market will provide the 9,878 units projected by SCAG within the next five years. Building permit data from Palmdale’s Department of Building and Safety show that 500 single family units will be completed in 2000. In order to meet 1 The assumptions used to calculate this table were: interest at PMI = loan amt x .0078/12,, Taxes = purchase price x0125/12, insurance-loan amt/1000x4/12, closing costs = mortgage amt x .03 All payments calculated for a 30- year fixed mortgage except the 35,048 price which was calculated for a 15-year fixed rate of ---PAGE BREAK--- Housing H-49 Adopted by City Council 04/11/01 SCAG’s goal, production next year would have to quadruple and then maintain or exceed that level over the subsequent three years. As demonstrated here, Palmdale is able to provide affordable housing for both owners and renters at and below median income. Much of the existing inventory will remain very affordable. Smaller new homes of less than 2,000 square feet can also be made affordable by falling interest rates, loan packages that include substantial down payment assistance and credits or discounts offered by builders. A new 1,600 square foot house on Palmdale’s east side selling for $138,000 can be purchased with lender down payment assistance and payments of only about 1,150 per month. A household earning $43,000 per year can afford this unit. A condominium development in Palmdale located near 22nd Street East on Avenue Q-4, known as “Monte Verde Villas,” recently sold out its first phase of 38 units at a price of approximately $66,500 for 2-bedroom, 2-bath units consisting of 1,056 square feet of living area, plus a two-car garage. The property owner intends to complete the final 36 units with a $70,000 price range, making these units affordable to low income families. The market is still able to produce affordable rental housing. The City is currently reviewing preliminary plans for development of a 220-unit multifamily rental project within Rancho Vista on the west side of the City which plans to charge rents of approximately $650 per month for a one-bedroom unit, $850 per month for a two- bedroom unit and $1,000 per month for a three-bedroom. However, prices of larger new homes will be less affordable in the coming years. The City estimates construction costs of a new 2,200 square foot home at $149,000 before builder’s profit and construction finance costs, suggesting that the sales prices of new homes will move beyond the means of families earning $50,000 to $60,000. Prices in a new development by KB Homes range from $155,000 to $194,000 per unit, requiring qualifying incomes between $56,600 and $71,000 per year. D. ADEQUATE SITES AND SERVICES State law requires the Housing Element to include an inventory of land suitable for residential development. The purpose is to demonstrate that the City has sufficient land at appropriate densities to accommodate the City’s share of regional housing needs for all income levels during the time frame of this Housing Element (2000-2005). The locality can then determine if additional government actions are needed to provide enough sites to accommodate its construction need. In addition to the land inventory, this section also analyzes services and facilities available for development during the planning period. ---PAGE BREAK--- Housing Adopted by City Council H-50 04/11/01 In preparing this inventory, information was obtained through the most recent County tax assessor database, the City’s Zoning Map and adopted specific plans. This information was used to determine the number of existing housing units in the City as well as the amount of residentially designated vacant land in order to assess the number of potential additional units for each zone. Table H-21 reflects a total of 40,911 existing housing units in the City of Palmdale with the potential for development of an additional 53,801 units for a total of 93,712 units at build out of the City. This table also assesses infrastructure availability within each residential zone and shows that urban infrastructure systems are currently available to serve approximately 50% of the 50,000 plus units still to be built in the City. Of the 28,000 plus potential units in which infrastructure is not currently available, more than 15,000 units are located in master planned communities with approved infrastructure plans. In a strong housing market, these units could be constructed without a approval process. Sites for the remaining units are primarily in vacant desert areas which would require extensive expansion of urban delivery systems prior to development. Table H-22 summarizes the data from Table 21 on future housing sites in the City where infrastructure to support housing development is already in place. As shown in the table, approximately 25,578 housing units could readily be constructed on 6,090 acres of land within the various land use categories of the City’s General Plan. Of these potential units, 21,585 would be on land zoned for development of up to six units per acre. The remaining 3,993 sites are zoned for development at six units per acre or higher, including 1,434 potential units in areas zoned for ten units to 16 units per acre per acre and 1,420 units in areas zoned for densities higher than 16 units per acre. These are the sites that builders could use to construct subsidized housing affordable to households earning less than 50% of median income. Market rate developers could also use these sites to build housing units affordable to families earning up to 80% of median income. In December 1999, the Planning Commission discussed various solutions to the concerns expressed by the City Council in enacting the development moratorium on multi-family housing. One possible solution involved providing land owners within the Medium Residential land use designation with an alternative to constructing attached housing that would still be affordable to lower income groups. The Commission wanted the City to consider the feasibility of constructing single family homes on lots smaller than the City’s current minimum standard of 7,000 square feet. Table 21 shows the potential for 1,434 units in the Medium Residential designation. Under Program H8.B in the updated programs section, the City’s Planning Department will conduct a study of how other communities use smaller lot sizes to promote affordability in order to make recommendations for changes to the Palmdale City Council. ---PAGE BREAK--- Housing H-51 Adopted by City Council 04/11/01 Two hundred multi-family units were completed in 2000 and there are 2,197 vacant sites still available. According to Table 21, there are sites with infrastructure in place for 21,585 single family units and an additional 2,063 units could be built on underdeveloped sites as either second housing units or density bonus units. A density bonus of up to 50% is available to any qualifying development proposal in accordance with the City’s density bonus ordinance. As mentioned previously, second housing units are expected to become more prevalent as homes on larger lots are developed within the City, further increasing the supply of housing available for Palmdale residents. Vacant undeveloped sites with nearby infrastructure are located in areas also served by local school districts, parks programs, library and other governmental services. As part of the City’s development review process (see Figure all affected agencies will have an opportunity to review new development proposals and make requests for additional services that may be required to mitigate project impacts on local public facilities and community services. Therefore all necessary public services and facilities will be available to serve the sites identified in Table H-22. As shown on Table H-13, a total of 9,878 housing units have been projected for the City under SCAG’s Regional Housing Needs Assessment (RHNA) during the planning period 2000-2005. While the California Department of Housing and Community Development (HCD) primarily recognizes multifamily units as the housing types serving low-income households, new attached for sale housing such as condominiums, townhouses and smaller single family units can be made affordable to households at 50-80% of median income through down payment assistance and reduced rate mortgages offered by both public agencies and private lenders. A new single family detached housing development on Palmdale’s east side is selling 1,600 square foot units for $138,000 with terms that set payments at only $1,150 per month. The density of recently constructed affordable multifamily buildings ranges from 14 to 16 units per acre. A just completed low-income family apartment complex constructed on 14 acres has a density of 14 units per acre while a 144-unit senior project constructed in 2000 has 16 units per acre. A tentative tract map for 82 lots of attached housing on 27 acres will be built at a density of six dwelling units per acre. This analysis shows that there is sufficient land in Palmdale to build both single and multifamily units at a range of densities affordable to all income levels. ---PAGE BREAK--- Housing Adopted by City Council H-52 04/11/01 Table H-21 Estimated Housing Units at Build Out of the General Plan (Jan. 2001) General Plan Land Use Designation Zone Designation* No. Of Existing Units Available Vacant Acreage No. Of Potential Units Infrastructure Available Total Units at Buildout Percentag e Of Total Equestrian Residential (1 du/2.5 ac) A-1 PZ R-1 1,030 750 160 910 300 40 340 Yes 1,330 40 1,370 1% Low Density Residential (1 du/ac) A-1 PZ A-1 R-1 R-1 PZ 670 290 39 207 1,206 7,417 905 560 6,754 15,636 5,306 721 460 5,174 11,661 5,976 1,011 499 5,381 12,867 14% Single Family 1 (0-2 du/ac) R-1 98 1,500 1,100 1,198 1% Single Family 2 (0-3 du/ac) R-1 City Ranch SP College Park SP Hillside SP Ritter Ranch SP 2,829 307 3,136 2,083 133 540 50 1,504 4,310 6,559 256 847 115 2,858 10,635 Yes Yes 9,388 256 847 422 2,858 13,771 15% Single Family 3 (3.1-6 du/ac) R-1 City Ranch Rancho Vista SP Ritter Ranch SP 24,175 40 1,736 25,951 2,634 643 210 816 4,303 13,426 2,933 1,285 3,064 20,708 Yes Yes 37,601 2,973 3,021 3,064 46,659 50% Medium Residential (6.1-10 du/ac) R-2 City Ranch SP Rancho Vista SP Ritter Ranch SP 3,546 206 3,752 113 228 111 206 658 906 1,655 528 1,554 4,643 Yes Yes 4,452 1,655 734 1,554 8,395 9% ---PAGE BREAK--- Housing H-53 Adopted by City Council 04/11/01 Table H-21 Estimated Housing Units at Build Out of the General Plan (Jan. 2001) (Con’t) Multi-Family Residential (10.1-16 du/ac) R-3 City Ranch SP Joshua Hills Ritter Ranch SP 5,538 200 5,738 81 22 26 129 1,139 313 348 1,800 Yes n/a 6,677 313 200 348 7,538 8% Multi-Family Residential (over 16 du/ac) Joshua Hills SP (22 du/ac) Rancho Vista SP (26 du/ac) Ritter Ranch SP (22 du/ac) 24 34 22 80 536 884 494 1,914 Yes Yes 536 884 494 1,914 2% TOTAL: 40,911 27,526 53,801 93,712 100% *PZ = denotes land that has been pre-zoned by the City within its Sphere of Influence ---PAGE BREAK--- Housing Adopted by City Council H-54 04/11/01 Table H-22 Sites Available* for Housing Development within Palmdale’s Sphere of Influence (Jan. 2001) General Plan Land Use Designatio n Equest. Res. (1 Du/ 2.5 Ac) Low Density Res. (1 Du/ac) Single Family 1 (0-2 Du/ac) Single Family 2 (0-3 Du/ac) Single Family 3 (3.1-6 Du/ac) Medium Residenti al (6.1-10 Du/ac) Multi- family Residenti al (10.1-16 Du/ac) Multi- family Residenti al (Over 16 Du/ac) Total Vacant Acreage 750 - - 2,133 2,844 224 81 58 6,090 Potential Units 300 - - 6,674 14,711 1,434 1,139 1,420 25,578 Additional Units on Under- developed Sites 103 120 10 300 1,467 35 28 35 2,063 Total Potential Units 403 120 10 6,974 16,178 1,469 1,167 1,455 27,641 *Infrastructure exists in close proximity; derived from Table 21 Infrastructure for Housing Development In the City’s downtown area, most of the land has been divided into buildable lots. These areas are served by streets but water and sewer services are equally distributed; in some areas a builder can easily connect to these services, in other areas the builder may have to go up a street or two to connect. On Palmdale’s west side, most of the land is vacant and unimproved and in large, master-planned developments, developers might have to install streets, sidewalks, power, water and sewer services. This makes development of unimproved land expensive. While land costs are low, the schedules of fees and development costs in the Constraints Section (Tables H-23 and H-24) indicate that fees and construction costs have risen, putting newly constructed units out of the reach of families who earn the County median income. In order to increase the affordability of new single family housing, the City will consider permitting alternate development types such as wide shallow lots, small lot development and other alternatives. Gas is provided by The Gas Company and power by Southern California Edison. Trash service is provided by a private hauler through a franchise agreement with the City. Recycling services are provided by the trash hauler and local recycling centers. The City has 20 water districts and three sewer districts. A citywide drainage system is ---PAGE BREAK--- Housing H-55 Adopted by City Council 04/11/01 being installed by the City but drainage is still an issue on some sites and has to be provided by the developer. The City has a capital improvement plan for upgrading the circulation system. Traffic mitigation fees on new development help to offset the cost of improvements. ---PAGE BREAK--- Housing H-56 Adopted by City Council 04/11/01 SECTION 6. SPECIAL NEEDS Female-Headed Households Need The designation of female-headed households as a special needs category reflects the economic reality that two incomes are often needed to meet today’s high housing costs and that divorced women often fall into poverty for one of several reasons: child support payments are never made or fail to compensate the real costs of raising children and/or women often earn lower wages than men, particularly if they have been out of the workforce for a period of time. However, a just-published study shows higher poverty rates in California than in any other part of the nation because both single and two- parent working families in low-wage jobs are unable to rise out of poverty. In 1990 there were 1,651 female-headed families with children under age 18 in Palmdale. Of these 760, or 46% had incomes below the poverty level. According to the Los Angeles County Department of Public Social Services, in February 2000 there are 2,120 female-headed families in the CalWORKs program (CalWORKs is the program that took the place of Aid to Families with Dependent Children---AFDC.) Also included in the CalWORKs program are 145 families headed by single males and 382 two-parent families. These families are likely to need subsidized housing and are vulnerable to becoming homeless. Domestic Violence Domestic violence is one of the factors that leads to homelessness for women and children who often must leave home in order to be safe from a battering spouse or domestic partner. This year, the Antelope Valley Domestic Violence Council shelter program had 120 single parents and19 single women who needed housing assistance. Resources and Solutions Palmdale’s female–headed households with adequate incomes do not have special housing problems that need attention. However, female-headed households living on the CalWORKs income of $626 for a family of three or earning minimum wage of $5.75 per hour can expect to have serious housing problems. With average rents in Palmdale at $477 for a one-bedroom apartment and $568 for a two-bedroom apartment, CAlWORKS families would have to pay between 76% and 91% of their incomes for housing. However, even if a family is desperate enough to spend nearly all its income for housing, it might be impossible to rent an available unit because the family does not have the funds to provide a security deposit or is not considered an acceptable tenant. ---PAGE BREAK--- Housing Adopted by City Council H-57 04/11/01 Many property managers require tenants to have incomes that are three times the rent. Almost no one will rent to a family with a prior eviction. So Palmdale’s very low income households need a Section 8 voucher or an apartment with state or federal subsidies. There are 687 Section 8 certificates in Palmdale and the waiting list is from eight to ten years. There are 824 subsidized family units in Palmdale, many of which charge tenants only 30% of their incomes for rent. These units have few vacancies. These 1,511 subsidized units are a substantial resource for Palmdale’s lowest income households, but are not enough to meet the need for very low cost housing. Palmdale needs a homeless prevention program to help extremely low-income households stay in their housing. Furthermore, some of the existing subsidized units may convert to market rates in the next several years and it is crucial that those units are either replaced or purchased and preserved as affordable housing. Elderly Need In 1990 there were 3,264 persons age 65 and over in Palmdale. According to data provided by the Social Security Administration, by 1999 there were 6,355 persons age 65 or older receiving Social Security benefits in the three Palmdale zip codes.1 These recipients included retired and disabled workers, their wives and husbands and widows and widowers. The proportion of persons in this age group appears to be about the same as in 1990.2 In 1990, more than third (37%) of the population age 65 and older had a disability. The 1999 Social Security data shows that there were 1,635 disabled workers that year. But it isn’t possible to calculate their proportion of the entire aged population because these workers could be older or younger than 65. In 1990 12.9% of Palmdale’s population lived below poverty (earning less than 30% of median income.) No data on current poverty levels by age are available. However, the Social Security data does show that there were 658 aged persons receiving Supplemental Security income in 1998. These were persons who were not eligible for Old-Age, Survivors and Disability Insurance (OASDI–usually called Social Security) or whose OASDI payments were so small that they needed a supplement. 1 These zip codes include areas not within the City of Palmdale and so somewhat overstate the number of persons in the 65 plus age group. 2 It is not possible to tell exactly whether the proportion has increased because the data include some people who do not live within the City of Palmdale.. (See note 4) ---PAGE BREAK--- Housing H-58 Adopted by City Council 04/11/01 Older homeowners have often paid off their mortgages and can devote their income to other expenses, but elderly renters may find fixed incomes inadequate to meet rising rental costs. As both groups age, they may become frail or partially disabled and need help with tasks such as grocery shopping, cooking, cleaning, yardwork, and simple household repairs. It often isn’t possible to depend on children or other relatives for this assistance and paid household help is expensive for those on fixed incomes. Transportation may also become a problem for the frail elderly who have to give up driving due to eyesight or other factors. The community needs to plan for both home- based assistance and assisted living facilities for its aging population. Resources and Solutions There are two subsidized projects with 183 units in Palmdale restricted to low-income seniors. One, the 107-unit Impressions, is owned and managed by the nonprofit Southern California Housing Development Corporation. Impressions was financed with a multifamily housing revenue bond that expires in 2028. The other, East 35th Street Apartments, has a Section 8 project-based contract that expires in 2003. This building is owned by Goldrich and Kest. It is possible that Goldrich and Kest will not renew the Section 8 contract when it expires. The existing tenants would receive portable Section 8 tenant assistance vouchers but the building would no longer have rents affordable to very low-income seniors. The Palmdale Redevelopment Agency is planning to construct about 200 new senior units in an area of the City near Courson Park. Land for this project is being assembled, but these units will not be built in the current planning period, 2000-2005. A 144-unit senior project with 29 units for low-income seniors is under construction and a market-rate assisted living development with 82 senior units has received planning approval from the City but has not yet begun construction. A market study conducted for Kaufman and Broad in 1998 concluded that there would be a market for another senior project with deeply subsidized rents. The market research company estimated that 13.1% of all Antelope Valley households were senior households and about 20% of these households have incomes low enough to qualify for a housing subsidy. Furthermore, with only four subsidized senior projects in the entire Antelope Valley, they believed that the need for low-cost senior housing had not yet been met. Although there are fewer low-income senior households than low-income households with children, all of the permanently affordable housing units now planned by the City are senior units in buildings that exclude children. The City’s Year 2000 Assessment of Impediments to Fair Housing Choices identifies this issue as an impediment to fair ---PAGE BREAK--- Housing Adopted by City Council H-59 04/11/01 housing and recommends that the City identify a “fair share” of housing resources [for each population group] and plan to meet those needs.3 Disabled Need Because there are many different types of disabilities, it is not possible to address the housing needs of disabled persons with a single program type. Among persons who receive some kind of disability income are those with developmental disabilities, chronic mental illness and physical handicaps ranging from blindness to paraplegia. Some persons with disabilities work and simply need reasonable accommodation such as wheelchair ramps for their housing. Others need supportive housing programs in order to live independently. Still others need group homes with 24-hour staff. Group homes are usually four to six-bed facilities in residential neighborhoods with 24-hour staff. A number of these homes are under development in Palmdale. It is not possible to obtain current data on all persons with disabilities in Palmdale. Data from the Social Security Administration shows that in 1999 there were1,635 disabled workers receiving OASDI income The Antelope Valley Mental Health Center (AVMHC) reports an open caseload of 1,400 individuals with chronic mental illness in 2000. The agency provided homeless assistance to 207 individuals in the six months between July and December 1999. AVMHC opened the Palmdale Social Center in 1999. The Antelope Valley Mental Health Association sees about 300 homeless clients per year. All of these clients are single adults. About 250 homeless clients request housing assistance. Many of these may be the same clients. The North Los Angeles Regional Center serves 10,600 developmentally disabled clients in the Antelope, Santa Clarita and San Fernando Valleys. These clients include both children and adults. Developmentally disabled adults have a wide range of capacities and may live in a range of settings that include group homes, supportive living and independent living. Developmentally disabled clients who wish to live independently may have an income of only $692 per month. The Independent Living Center in Lancaster assists 30 new clients per month in the Antelope Valley, about half of whom need housing assistance. Data from the Social Security Administration shows that there are a number of disabled recipients of Supplemental Security Income in Palmdale including 545 children under age 18 and 1,635 adults between the ages of 18 and 65. Supplemental Security Income 3 City of Palmdale, et.al. (August 2000). Assessment of Impediments to Fair Housing Choice. Page 151. ---PAGE BREAK--- Housing H-60 Adopted by City Council 04/11/01 (SSI) payments vary by age, disability type and living arrangements. Disabled persons and those age 65 or older who live independently receive $692 per month. Blind recipients receive $749 per month. A disabled child living in his or her parent’s home receives $593 per month. Resources and Solutions Disabled persons with fixed incomes face the same affordability problems as other extremely low-income households in Palmdale. Their incomes are so low that the price of a one-bedroom apartment can absorb three-quarters of their income. In order to address the problem of housing persons with disabilities, the City should convene an ad hoc task force made up of the PAC Coordinator, the Housing Manager, representatives from the North Los Angeles Regional Center, the Center for Independent Living, the Antelope Valley Mental Health Association, Southern California Housing Development Corporation and property managers from several of the federally subsidized apartments. The purposed of the task force would be to identify the barriers to housing disabled Palmdale residents and develop criteria to be followed by property managers in processing applications from disabled persons. Criteria should be adopted for use in both subsidized and market rate apartments. Accessibility The City’s Building and Safety Department is considering the implementation of a program under which multifamily buildings would be inspected for handicapped access requirements every one to two years. These buildings would have to comply with whatever the requirements wee at the time the building was constructed. Because people are likely to become more disabled as they age, enforcement of the accessibility provisions of Title 24 of the Uniform Building Code in all projects proposing to house seniors is crucial. Even if not required by Title 24, two-story projects intended to house only seniors should be required to provide elevators to the second floor, ramps to the first floor, and the required minimum number of units with widened doorways and halls, and wheelchair accessible bathrooms. Existing housing can be made more hospitable to disabled persons if property owners comply with the Americans with Disabilities Act of 1990. This law requires rental property owners to make reasonable accommodation for the needs of a disabled person. This could involve the provision of a more convenient parking space, a device to unlock the front door by remote, or accommodation of a seeing eye dog in a no-pets building. The property owner is not required to pay for the changes installed by the disabled person. Persons with physical disabilities, chronic mental illness and developmental disabilities are all protected by the federal and state fair housing laws and the Americans with Disabilities Act (ADA.) The provisions of the act can be found at www.eeoc.gov/docs/accommodation.html. The ---PAGE BREAK--- Housing Adopted by City Council H-61 04/11/01 City’s Emergency Grant Program can be used to make the homes of disabled low- income seniors more accessible. The North Los Angeles Regional Center develops group homes with four to six beds for its clients and provides training for those clients capable of independent living. There are two nonprofit housing development organizations in Los Angeles County that specialize in developing affordable supportive housing for disabled persons. They are: I. A Community of Friends (Persons with Special Needs) 3345 Wilshire Boulevard #1000 Los Angeles, CA 90010 (213) 480-0809 Email: [EMAIL REDACTED] Monique Lawshe, Executive Director II. Homes for Life Foundation (Persons with Chronic Mental Illness) 8929 S. Sepulveda Boulevard #506 Los Angeles, CA 90045 (310) 337-7417 Carol M. Liess Large Households Need According to the 1990 Census, 81% of the owner-occupied units in Palmdale had at least three bedrooms but only 25% of rental units had more than two bedrooms. The remaining rental housing stock in Palmdale had zero, one or two bedrooms. In 1990, there were 12,486 owner-occupied units with three or more bedrooms but only 2,799 of the City’s owner-occupied units had household sizes of five or more persons. In the rental housing stock, there were 1,631 units with three or more bedrooms but only 1,048 renter households with five or more persons. Still, 9.1% of the City’s households were overcrowded. Overcrowding has decreased over the decade. SCAG’s estimates of current need in Palmdale show that there are 1,590 overcrowded renter households and 1,065 overcrowded owner households, a total of 2,655 households. These household, of which 60% earn less than 80% of median income, make up 7.6% of the City’s households. Overcrowding is really a problem of housing affordability: when households cannot afford units that fit their families, they may rent smaller units or double up with other families to make their housing more affordable. ---PAGE BREAK--- Housing H-62 Adopted by City Council 04/11/01 Resources A new 200-unit subsidized housing development with100 three-bedroom units was just completed in Palmdale. The City is also planning to work with Habitat for Humanity to construct six affordable homes and will provide a first-time homebuyer program for both single family homes and mobile homes. The City’s rental housing stock includes single family homes as well as apartments in multifamily buildings and some of these homes may have rents affordable to large families with lower incomes. Policy H5.3.1 in the updated programs section encourages the creation of larger rental units through reconfiguration of existing units during rehabilitation of multifamily housing. Homeless Needs The South Antelope Valley Emergency Services program (SAVES), a City-funded homeless service provider, reports that between July 1999 and June 2000, provided emergency shelter vouchers to 257 households with 777 family members (317 adults and 460 children.) In order to avoid duplication of services, SAVES requires that clients who request motel vouchers first go to the Department of Public Social Services (DPSS) for eligibility screening. Families may be eligible for homeless assistance provided by DPSS. Some families receive homeless services from DPSS and are not included in the SAVES statistics and not all homeless persons seek services so an estimate of 777 persons is a very conservative estimate of the number of homeless persons in Palmdale in the course of a year. Not included in this count are Palmdale women who use the domestic violence shelter in Lancaster. Resources and Solutions SAVES provides motel vouchers to homeless individuals and families for two or three days. The Department of Public Social Services will provide eligible homeless families with motel vouchers and will also provide move-in expenses for permanent housing. But families can apply for this assistance only once in a lifetime. Catholic Charities operates the Lancaster Community Shelter in Lancaster with 50 emergency beds. The only accommodation for families is in an attachment to the shelter that serves two families. In the winter, the Lancaster Community Shelter becomes the area’s Cold Wet Weather Shelter provider, expanding its capacity by adding about 45 cots. In 1999 the winter shelter served 599 clients. The Antelope Valley Domestic Violence Council operates Valley Oasis, a domestic violence shelter with 56 beds. Valley Oasis provides a six-month program. The Antelope Valley Mental Health Association has a Shelter Plus Care grant that provides Section 8 vouchers and supportive services to homeless clients. ---PAGE BREAK--- Housing Adopted by City Council H-63 04/11/01 In September 2000, the Antelope Valley Mental Health Association, as lead agencies for the Antelope Valley Homeless Coalition, opened the Antelope Valley Access Center in Lancaster. When fully operational, the Access Center will be a one-stop service center for homeless persons in the Antelope Valley. It will be staffed by a program manager, a licensed mental health professional, a DPSS worker, a Veterans Administration staff person, a substance abuse case manager, a housing placement counselor and a domestic violence counselor. This center will greatly improve the coordination of services to homeless persons in the Antelope Valley. At a July 28 meeting of homeless agencies held by the City of Palmdale Planning Department, staff from several agencies identified unmet needs faced by their clients. There is a severe shortage of transitional housing for families. According to staff from the Salvation Army and SAVES, it is crucial to assess the needs of homeless families and individuals in order to provide adequate assistance. The motel voucher program does not provide enough time in shelter to assess and stabilize homeless families. A week or several weeks in a shelter is necessary for an adequate assessment. For those lucky few who can obtain a Section 8 certificate, a three-month wait may be required to find an apartment and process the paperwork. Housing homeless families and individuals in Palmdale is very difficult according to the Antelope Valley Domestic Violence Council and SAVES. Not only do homeless families and individuals have very low incomes, but they may also have poor credit histories or a record of eviction. The applications of these families for apartments may be rejected by most Palmdale property managers, even if the evictions were the result of actions by a spouse or domestic partner. Property managers often require incomes that are three times the rent and reject applicants with poor credit histories or records of eviction. While these are generally sound property management practices, it is also important to house victims of domestic violence and other homeless persons and families. Without a program for permanently housing homeless families and individuals, there is no solution to the problem of homelessness. Although there are an adequate number of shelter vouchers for very short term emergency housing, there is a critical lack of shelter facilities for homeless families in the Antelope Valley. In August 2000, the Lancaster Community Shelter turned away 42 families. At the same time, SAVES had an excess of shelter vouchers. The opening of the Access Center will help coordinate service provision to homeless families, but there will still be a need for additional transitional housing units to stabilize homeless families. Homeless shelters are permitted in the C-3 (General Commercial) and PF (Public Facilities) zones with approval of a conditional use permit. The zoning ordinance contains standards for development of such uses that apply to both existing buildings ---PAGE BREAK--- Housing H-64 Adopted by City Council 04/11/01 and new development. There are many vacant, undeveloped sites and vacant commercial buildings in the downtown area of the City that could be used for a homeless shelter. Infrastructure is available to service these areas. Permanent Housing for Homeless Families A way back to permanent housing is the missing component in the Antelope Valley Continuum of Care. The Antelope Valley Homeless Coalition has asked the City of Palmdale for a housing placement counselor at the Access Center. The Coalition may want to consider the development of a “Housing First” program in Antelope Valley communities. This program, initiated by Beyond Shelter in Los Angeles and now a nationwide model, does not utilize transitional housing facilities for homeless families. Instead, after a short period of stabilization in a homeless shelter, homeless families who qualify receive a Section 8 certificate and move into permanent housing. (There is a special set-aside of Section 8 certificates for homeless families.) Transitional services are provided to the family by a social worker who makes weekly home visits (or more often if necessary.) The home visits are conducted weekly for six months and then intermittently for another six months. Farmworkers Need In 1990, the Census counted 136 farmworkers in Palmdale’s population. According to the second Industry Roundtable Report produced by the Greater Antelope Valley Economic Alliance in 2000, the Antelope Valley is still a major agricultural producer in Los Angeles County growing fruits, vegetables, feed crops, ornamental plants and ground cover. The report cites data from the California Employment Development Department showing 1,000 residents in the Antelope Valley employed in agricultural enterprises. The number of farmworkers currently residing in Palmdale cannot be estimated from this information. Most farm work is seasonal and large numbers of farm workers are needed only during the harvest. Some farmworkers migrate from area to area during the harvest season, others are local residents who take other seasonal work or receive unemployment once the harvests are finished. Farm work usually pays very low wages and farmworkers in rural areas are often poorly housed, living in substandard dwellings in fields that are sprayed with pesticides or in deteriorated migrant camps. Farmworkers who live in Palmdale have the same housing needs as other very low- income families and individuals and are likely to encounter the same barriers–there are not enough units affordable to families or individuals earning less than $20,000 per year. ---PAGE BREAK--- Housing Adopted by City Council H-65 04/11/01 Resources and Solutions An increase in the number of units affordable to households earning 30% or less of area median income and an increase in the number of available Section 8 vouchers would benefit Palmdale farmworker families as well as other low-income Palmdale families. The California Department of Housing and Community Development (HCD) has a Farmworker Housing Grant Program. This year the program awarded $4.1 million in grants to ten communities for construction and/or rehabilitation of affordable housing. In 1999 HCD received three grants from the U.S. Department of Agriculture to reconstruct migrant farmworker housing centers. Two of these grants went to communities in Kern County to the north of the Antelope Valley; one went to a center in Monterey County. While some farmworker housing is built by nonprofits located in rural communities, there is also a statewide nonproift corporation, Rural California Housing Corporation that sponsors farmworker housing. Fair Housing Federal and state fair housing laws prohibit discrimination in housing based on race, national origin, religion, gender, sexual orientation and familial status. In 1990 the majority of Palmdale’s population was White. But over the last decade, Palmdale’s population growth made the community more like the County as a whole. In fact, the ethnic distribution of children in Palmdale’s schools looks very much like the population of the County as a whole (see discussion of ethnicity in Section III, Population.) The City contracts with the San Fernando Fair Housing Council to provide fair housing education, outreach and investigation services to Palmdale residents. The City has just completed its Year 2000 Assessment of Impediments to Fair Housing Choices (AI). This analysis of factors affecting access to housing for all Palmdale residents makes a number of findings and provides recommendations. The AI found that the level of funding for fair housing services limits the services the City’s housing contractor is able to provide. The AI also found that some of the City’s land use regulations may restrict fair housing choice for the City’s low income households who are likely to be members of protected classes The lack of an Antelope Valley Fair Housing office also limits fair housing services. The AI recommended the following: ---PAGE BREAK--- Housing H-66 Adopted by City Council 04/11/01 Palmdale should undertake a realistic assessment of its need for fair housing services over the next five years, explore the options of establishing an Antelope Valley fair housing office and of sharing the costs with the City of Lancaster; Palmdale, in cooperation with other municipalities in the Antelope Valley should develop a comprehensive fair housing service that includes education and outreach, counseling, policy analysis and enforcement programs in rental, sales, lending, insurance redlining; Palmdale should develop a counseling, investigatory and enforcement program to handle the high percentage of harassment complaints filed by tenants in multifamily buildings, conduct fair housing training for the Planning Commission, property managers and PAC staff and develop the capacity to provide in-person counseling for clients who complain of sexual harassment; The moratorium on multifamily development and planned downzoning of multifamily parcels could restrict housing options for low-income households of color, small and large families with children, female-headed households and persons with disabilities; Conditional use permits for transitional housing, social care facilities and rooming and boarding houses may impede the ability of persons entitled to fair housing protection to find housing in Palmdale; and Requiring a 1/4 mile separation between transitional or emergency housing and other types of housing amenities that are used by homeless persons or persons with disabilities may restrict the fair housing choices of these persons. ---PAGE BREAK--- Housing H-67 Adopted by City Council 04/11/01 SECTION 7. CONSTRAINTS A. Governmental Constraints Land Use Controls Multifamily Construction Moratorium In 1999, the City imposed a two-year moratorium on multifamily construction in Palmdale that expires in March 2001. The moratorium was imposed in response to public opposition to a 100% affordable multifamily project financed with low-income housing tax credits. This project, constructed on Palmdale’s east side, is now complete. It provides low density multifamily units in a style that is indistinguishable from adjoining tile-roofed stucco attached housing subdivisions. The developer reconsidered development of a second affordable housing project due to public opposition to the developer’s first project and when the site on which it was to be constructed was rezoned for single family use. The moratorium has stopped all new applications for multifamily construction from being filed although there are still several permitted projects in the pipeline that have not begun construction and several projects under construction. The moratorium is a clear constraint on housing but it will end in March 2001. During the moratorium, the City conducted a study of the areas zoned for multifamily use and concluded that the areas zoned for higher density multifamily development were too concentrated and should be more dispersed throughout the community. Accordingly, in some areas zoned for multifamily residential, the permitted density will be reduced and in other areas land will be rezoned for single family development. In several places, land use will change from commercial to single family or from single family to business park. At the end of the moratorium period, the Planning Department will have reduced permitted density in a number of areas zoned for multifamily from a maximum of 16 units per acre to a maximum of 10 units per acre. While these changes reduced permitted densities in some areas and thus the total number of multifamily units that can be constructed, Table 21 shows that multifamily residential zones in Palmdale will still permit the construction of 3,714 multifamily units in areas designated for 10.1 or more units per acre and 4,643 multifamily units in areas designated Medium Residential (6.1 to 10 units per acre), for a total of 8,357 additional multifamily units in the City. These changes were concentrated in the downtown and older developed sections of Palmdale. On the westside of Palmdale, where most of the new construction now takes place, areas zoned for multifamily development are part of development agreements or specific plans for large areas and not subject to zoning modification. ---PAGE BREAK--- Housing Adopted by City Council H-68 04/11/01 Zoning and Density There are seven residential land use designations in Palmdale beginning with Equestrian Residential which permits one dwelling unit per 2.5 acres. Low Density Residential development permits one dwelling unit per acre; Single Family 1 permits up to two units per acre, Single Family 2 permits three units per acre; Single Family 3 permits between 3.1 and 6 units per acre; Medium Residential permits between 6.1 and 10 units per acre and Multifamily Residential permits between 10.1 and 16 units per acre. Land zoned for residential use will accommodate the construction of 41,006 units including 33,852 single family units and 7,154 multifamily units. Table H-20 in Section V. D. on Adequate Sites shows the potential number of units that can be built on vacant sites in Palmdale’s Sphere of Influence while Table 21 shows the number of vacant sites available in the 2000-2005 planning period. Some portions of the land designated for Equestrian Residential and Low Density Residential are currently outside Palmdale’s city limits; residentially zoned land within city boundaries will accommodate 31,000 units. Zoning designations that correspond to these land uses are: A-1 (light agricultural), R-1, (single family residential), R-2 (medium residential) and R-3 (multiple residential). Parking Multifamily rental developments must provide 2.25 parking spaces per unit. One space must be covered and designated for a specific unit. In condominium projects, 2.25 parking spaces per unit are also required but two spaces must be designated for a specific unit and one must be within an enclosed garage. Single family houses must provide a fully enclosed two-car garage with dimensions of at least 20 feet by 20 feet. Assisted living developments must provide one parking space for each three residents and one space for each employee. Because parking requirements can affect affordability, the City will study possible parking reductions such as requiring only two rather than 2.25 spaces in the Medium Residential zone and requiring only one space per unit for projects with long-term affordability restrictions. Development Standards Single Family The minimum lot size in the R-1 zone (single family) is 7,000 square feet, with permitted density from 3.1 units to 6 units per acre. A front setback of 20 feet and a rear yard of no less than 20% of lot depth or 20 feet are required. Side yards must be at least five feet on one side and 10 feet on the other side. Building heights cannot exceed two ---PAGE BREAK--- Housing H-69 Adopted by City Council 04/11/01 stories or 35 feet while accessory building heights cannot exceed one story or 17 feet. Lot coverage of all principal buildings and accessory structures cannot exceed 40%. In the R-2 zone (Medium Residential), the minimum lot size for two-family dwellings is 8,000 square feet and for a single family house, 7,000 square feet. For two or more unit developments, 4,000 square feet of lot area per unit is required. Permitted density in this zone ranges from 6.1 to 10 units per acre. Permitted building types include single family detached and attached, zero lot line and wide-shallow subdivisions; duplexes, triplexes, condominium and townhouse developments and moderate density apartment and manufactured housing developments. Single family dwelling units in this zone must conform to the standards for single family units in the single family zone. For two or more unit developments, the front yard setback is 20 feet and the side yard must be not less than five feet for each story. The rear yard must be not less than 15 feet. Building heights cannot exceed two stories or 35 feet and lot coverage cannot exceed 50%. The zoning code also sets minimum unit sizes for multifamily dwellings as follows: Livable Area in Square Feet Maximum Number of Bedrooms Minimum Number of Baths 500 Bachelor 1 600 1 1 800 2 1 1,000 3 2 1,250 3 or more 2 Source: City of Palmdale Zoning Ordinance A slight smaller livable area may be approved for a housing project for seniors. Development standards for multiple family developments with four or more dwelling units are as follows: 30% usable common open space shall be provided for passive and active recreation; each dwelling unit shall have a private (walled) patio or balcony with a minimum of seven feet of depth. A project with four or more units must provide recreational amenities such as a swimming pool, spa, clubhouse, tot lot with play equipment, picnic shelter, barbecue area and so on. Each dwelling unit must be provided with a minimum of 150 cubic feet of enclosed storage space, each dwelling unit must provide sufficient space for and be plumbed and wired for a standard size washing machine and dryer even if the project provides common laundry facilities. ---PAGE BREAK--- Housing Adopted by City Council H-70 04/11/01 These development standards may raise the per unit cost of construction by as much as 8% according to a multifamily developer working in Palmdale, and thus could be considered a constraint on housing affordability. On the other hand, high design standards help make multifamily projects more acceptable to Palmdale residents, an important consideration in a community where there has been considerable opposition from neighboring residents to the construction of affordable multifamily units. The poor design and poor quality of many multifamily units built in the 1970s and 1980s has contributed to community opposition to multifamily construction. Multifamily Residential According to the Palmdale Zoning Ordinance, the R-3 zone (multiple residential) is intended to promote the development of grouped housing such as townhouses, condominiums and apartment at a density of between 10.1 and 16 units per acre. The minimum lot size for multifamily residential parcels created after 12/14/94 is 20,000 square feet with a minimum lot area for each unit of 2,500 square feet, or, in the case of manufactured home parks or subdivisions a minimum lot area of five acres with a minimum lot area per unit of 2,200 square feet. The minimum lot width for multifamily residential development in Zone R-3 is 100 feet with front yard building setbacks at 20 feet, a 15-foot rear setback and side setbacks of not less than five feet for each story. Building heights cannot exceed three stories or 45 feet and maximum lot coverage cannot exceed 50%. The minimum dwelling unit areas are the same as those for medium (R-2) residential development and required amenities within each unit and within each development are the same as those for medium residential development. Required common area amenities must follow a schedule established by the City as follows: Units Amenities 0 - 3 0 4 - 50 1 51 - 100 2 101 - 200 3 201 -300 4 Source: Palmdale Zoning Ordinance As discussed in the section above on the R-2 zone, the design standards for multiple family units affect housing affordability by increasing costs. The City’s density bonus ---PAGE BREAK--- Housing H-71 Adopted by City Council 04/11/01 ordinance offsets the impact on affordability somewhat by providing a by-right 25% density bonus to developments that meet the standards of the state density bonus by making 10% of units affordable to households earning 50% or less of median income or 20% of units affordable to households earning 60% of median income. The City will study additional means of increasing affordability through modifications of development standards. Codes and Enforcement The City of Palmdale adopted the California Uniform Building Code without alterations. The City puts a high priority on building code enforcement. It has created a Neighborhood Improvement Program in which the Department of Building Safety works with law enforcement, the fire department, the Los Angeles County Department of Heath Services, the Palmdale Department of Public Works and other agencies to coordinate clean-up, infrastructure improvements, housing rehabilitation, crime reduction and improvements in property management practices in selected areas of the City. The Department of Building and Safety is also considering a program that would periodically inspect multifamily buildings for compliance with handicapped access requirements. A program of the Public Safety Department called Partners Against Crime (PAC), offers an eight-hour property management program for Palmdale property owners, managers and maintenance personnel. So far, more than 300 people have participated in this training program. Circulation and On and Off-Site Improvements In areas of existing development, the street system is in and developers only have to install sidewalks, driveways and curbs for their own development. In the downtown area and near other developments, water, sewer and power may extend to vacant infill lots in one area, but in another area developers of vacant lots may have to bring services to the lots from a distance down the streets. The same is true of larger parcels in the City’s older areas. Some may already have services close to the site; for other sites a developer may have to make a larger infrastructure investment. Gas is provided by The Gas Company and power by Southern California Edison. A citywide drainage system is being installed by the City but drainage is still an issue on some sites and has to be provided by the developer. Traffic studies are not required for infill developments unless an EIR is required. Instead, there is a traffic mitigation fee. The City has a capital improvements plan for improvements to the circulation system and the mitigation fee is combined with other funds to pay for street, traffic light and other improvements that are made according to a prioritized schedule. Much of Palmdale’s residentially zoned land lies in areas that are still unimproved. Developers are required to submit a master plan that includes streets, drainage, ---PAGE BREAK--- Housing Adopted by City Council H-72 04/11/01 sewers, power, and water before raw land developments can be approved. Two large planned developments, City Ranch and Ritter Ranch, were approved in the early 1990s. City Ranch is now beginning to be developed. As planned, these two developments will eventually add up to 12,400 new units to the City. Where possible, developers now prefer to establish community facilities districts that allow several developers to share the costs of infrastructure development in new areas. The cost of on- and off-site improvements doesn’t appear to be a constraint on new development in the City’s older areas. The higher costs of infrastructure development plus construction and impacts fees are reflected in the higher prices of new units-- $155,000 to 194,000 per unit--in developments such as KB Homes’ newest City Ranch properties. Fees and Permits Fees imposed by the City and the various school districts now add substantially to the cost of new housing in Palmdale. In 2001 school impact fees are anticipated to be $9,900 for a typical single family unit and $6,300 per unit for multifamily units compared to 1995 when the school impact fee was only $2,760 for a typical single family unit and $1,056 per unit for multifamily units. The Antelope Valley Union High School District has received permission from the state to collect additional Level II school impact fees of $1.89 per square foot raising school fees by 48% which is reflected in the fees described above. These huge changes in school fees along with increases in other fees will raise the fees for single family construction by 45% and for multifamily units by 22.6% in only five years. In addition to permit costs, utility hook-ups and school impact fees, the City also assesses large fees for traffic impacts and park impacts. Because the City does not have a fully developed drainage system, drainage impact fees are charged to pay for regional drainage improvements. The cost of all fees and permits is now $31,000 per unit for single family dwellings and $17,227 per unit for multifamily dwellings. These fees may seem high but the City must develop infrastructure and schools to serve its growing population. It may not be possible to reduce fees without severely impacting the community’s ability to provide basic infrastructure and services. ---PAGE BREAK--- Housing H-73 Adopted by City Council 04/11/01 Table H-23 Estimated Construction Costs - Single Family Detached Unit (Jan. 2001) 2,200 sq. ft. unit- 4 plus 500 sq. ft. garage Source of Cost Amount Material and Labor $ 103,400 Land Cost 15,000 Planning Department Fees Plan Check 28 building And Safety Fees Plan Check and Permits 5,509 Engineering Department Fees Grading Plan Check and Permit Engineering Plan Check and Permit 1,082 660 Drainage Impact Fees 2,834 Traffic Impact Fees 1,384 Park Impact Fees 3,223 Fire Facility Impact Fees 413 Table H-23 Estimated Construction Costs - Single Family Detached Unit (Jan. 2001) 2,200 sq. ft. unit- 4 plus 500 sq. ft. garage (Con’t) School Impact Fees 9,900 Sewer Fees (Hook-Up) 1,835 Water Fees (Hook-Up) 4,000 Public Improvement Bond Premium 132 Total Project Cost $ 149,400 Total Fees 31,000 Excludes builder’s profit, marketing and sales cost and construction financing cost. Source: City of Palmdale Planning, Building and Safety and Engineering Departments, Building Industry Association, Antelope Valley-East Kern Water Agency, L. A. County Waterworks District, Palmdale Water District No. 34 and L. A. County Sanitation District. ---PAGE BREAK--- Housing Adopted by City Council H-74 04/11/01 Table H-24 Estimated Construction Costs - Multifamily Project (Jan. 2001) Fourplex (1400 sq. ft. - 2 + 200 sq. ft. carport each) Source of Cost Amount Material and Labor $ 345,974 Land Cost 35,000 Common Laundry Room 2,000 Planning Department Fees Plan Check 2,000 Building and Safety Fees Plan Check and Permits 7, 600 Engineering Department Fees Grading Plan Check and Permit Engineering Plan Check and Permit 1,436 660 Drainage Impact Fees 5,667 Traffic Impact Fees 3,328 Park Impact Fees 7,608 Fire Facility Impact Fees 1,051 School Impact Fees 25,200 Sewer Fees (Hook-Up) 4,327 Water Fees (Hook-Up) 10,000 Public Improvement Bond Premium 33 Total Project Cost $ 451,884 Total Fees 68,910 Fees Per Unit 17,227 Excludes builder’s profit, marketing and sales cost and construction financing cost. Source: City of Palmdale Planning, Building and Safety and Engineering Departments, Building Industry Association, Antelope Valley-East Kern Water Agency, L. A. County Waterworks District, Palmdale Water District No. 34 and L. A. County Sanitation District. ---PAGE BREAK--- Housing H-75 Adopted by City Council 04/11/01 Permit Processing Figure 5 on the following page provides a flow chart of the development approval process. The development review process is an efficient one that uses a multi- departmental Development Advisory Board (DAB) to review proposed developments. The DAB process expedites the review process and provides an opportunity for communication between departments in order to minimize contradictory requirements. The city has a 45 to 50-day schedule for getting a development application through to Planning Commission or Site Plan Review hearing, provided the application is complete when it is submitted. Building and Safety typically requires one week for each check on a permit plan check. The Engineering Department has a 3-2-1 processing timeline for grading plans: three weeks for the first plan check, two weeks for the second, and one week for the third. Multifamily developments of five units or more are developed by right and are not subject to a conditional use permit, however these developments are typically subject to site plan review. The site plan review is conducted by the Director of Planning as the Hearing Officer in a public hearing. The site plan review is not considered a constraint on the development of multifamily housing because approval is only subject to conformity with all adopted development standards of the zone and the goals, policies and objectives of the General Plan, including this Housing Element. One of the findings that must be made in order to approve a site plan review is that the project will not have a substantial adverse effect on abutting properties. In the past, residents opposing new low-income multifamily developments were not able to prove that proposed multifamily developments would have adverse impacts and it is not anticipated that opponents to future development will be successful in meeting the “substantial evidence” threshold for a finding of adverse impact. Therefore, the City does not believe that site plan review process constrains the supply and affordability of multifamily housing. Section 8 Tenant-Based Rental Assistance The Housing Authority of Los Angeles County does not have enough regular or homeless Section 8 certificates to meet the needs of Palmdale’s poorest families. This is a problem throughout the county and state and cannot be addressed at the local level in a community that does not have its own housing authority. ---PAGE BREAK--- Housing Adopted by City Council H-76 04/11/01 Figure 5 Permit Processing Flow Chart ---PAGE BREAK--- Housing H-77 Adopted by City Council 04/11/01 B. Nongovernmental Constraints Public Opposition to Multifamily Housing According to City staff, a vocal section of Palmdale’s public objects not just to low- income multifamily construction but to all multifamily construction. The fear is that such buildings could affect the value of nearby single-family homes. Palmdale’s home values fell precipitously during the recession of the early and mid-1990s, forcing many residents into foreclosure and leaving many units vacant and abandoned. Public opposition to multifamily construction is a powerful constraint on housing provision in Palmdale; not only has it led to a 2-year moratorium on multifamily development but it has resulted in downzoning of land designated for multifamily use from 16 units to 10 units per acre and redesignation of areas zoned for multifamily development into single family designations. City Efforts to Mitigate Constraint The City will continue to permit multifamily development in the R-2 and R-3 zones and will promote affordable multifamily housing for seniors. A 144-unit senior project with 28 units affordable to very-low income households and 116 units affordable to low-income households has been approved and will be completed in early 2001. The Redevelopment Agency is acquiring land for another 200 affordable senior units that will probably begin construction in 2006. In 2000-2005, the City’s affordable housing programs for families will focus on rehabilitation of existing affordable single family units and programs to assist very-low and low income households become homeowners. The City’s Downpayment Assistance Program will help 40 low-income families purchase newly constructed single family homes and 60 low-income families purchase resale homes. The City’s First-Time Mobile Homebuyers’ Program will provide assistance to low-income households for the purchase of new mobile homes Over the next five years, the Palmdale Redevelopment Agency will provide vacant sites to Habitat for Humanity for the construction of six single family homes using volunteer labor, donated materials and sweat equity. Public opposition to multifamily housing development in Palmdale is almost exclusively limited to site-specific development proposals as evidenced by poor community attendance at workshops and public hearings on housing issues. Staff reports on new development projects therefore go into great detail on the need for affordable housing as identified in the Housing Element and on current housing law which prohibits discrimination based on income. These staff reports are made available to the public on the City’s website and are distributed at no cost to interested residents as a means of educating and informing residents on housing issues. The public is further advised by staff presentations at public hearings. ---PAGE BREAK--- Housing Adopted by City Council H-78 04/11/01 Representatives from Habitat for Humanity approached the City about constructing homes for low-income residents on vacant lots in Focus Area #3 as part of the City’s Neighborhood Improvement Project. The City will acquire properties and Habitat will develop them in accordance with their program. Habitat for Humanity builds new homes using donated materials and the donated labor of both skilled workers in the construction trades and community volunteers. The new owners are expected to invest “sweat equity” by helping in construction. Land Cost A survey of the sales price for 177 parcels of vacant land in Palmdale between January and August of 2000 shows prices ranging from two cents a square foot to $31.29 per square foot with a median price of $1.05 per square foot and a mean of $3.68. The director of the City’s Housing Division estimates that land prices for vacant infill lots in areas of the City zoned Medium Residential (6.1-10 du/acre) are about $2.00 per square foot. In Table 22 above, the land cost for a single family house on a 7,000 square foot lot is estimated at $2.14 per square foot while the land cost for four units in the Medium Residential zone is estimated at $2.18 per square foot for a 16,000 square foot lot. These prices assume that the land is served by adequate infrastructure.1 Cost of Construction Tables H-23 and H-24 show the cost to construct single and multifamily housing in 2000. A combination of changes in land, labor and materials cost along with very high fees and low-density zoning have driven construction costs for multifamily housing so high that new rental housing probably can’t be supported by market rents. Builders with low-income housing tax credits can still make a profit from building affordable units because their projects are financed with large equity investments, deferred loans and low-cost debt. Market rate developers with expensive conventional mortgages would need high rent payments to support their buildings. With the cost of a new single family home now estimated at $149,400 before builder’s profit, Palmdale has lost one of its unique advantages, the ability to provide affordable new homes to the county’s moderate-income families. But the high fees that are part of the cost of new units reflect the real cost of growth in Palmdale: the need to provide new schools, parks and infrastructure. Palmdale doesn’t yet have a drainage system to prevent flooding and developers must pay to bring water, sewer and power to their raw land developments. 1 Land costs obtained from First American Real Estate Solutions and from the Palmdale Housing Division. ---PAGE BREAK--- Housing H-79 Adopted by City Council 04/11/01 Rising prices will probably not slow down sales in Palmdale because its new four- bedroom units will still be less expensive than resale housing elsewhere. The median home price countywide in April 2000 was $202,000. Palmdale can still provide new homes priced between $155,000 and $194,000 per unit. Finance Multi-Family Finance According to an article in the Los Angeles Times on February 15, 2000, there is an ample supply of finance for apartment construction in Southern California this year, especially for buildings priced below $5 million. One lender, Southern Pacific Bank, lent $350 million to apartment buyers in 1999 and expects to lend $400 million in 2000. Other real estate lenders and investors interviewed for the article include First Federal Bank in Santa Monica, Hanover financial Co., Buchanan Street partners, and Fremont Investment and Loan.2 Affordable housing finance is now readily available from the community development programs of banks such as the Bank of America, California Federal Bank and Wells Fargo. The California Department of Housing and Community Development has authority for hundreds of millions of dollars for affordable single and multifamily programs. Mortgage revenue bonds issued by the state and local governments also provide finance for construction or purchase and rehabilitation of affordable units low-interest loans are available from specialized lenders such as the Low Income Housing Fund. Federal and state low-income housing tax credits are available for multi-family projects that house very low-income households and tax credit investment pools are maintained by the California Equity Fund, the Enterprise Foundation as well as corporate investors. A 200-unit tax credit project was recently completed in Palmdale by a private developer that required no local investment but was financed with bond funds and a tax credit investment. Mortgage Finance for Single Family Homes There is an ample supply of mortgage loans for Palmdale homebuyers, including a number of first-time homebuyer programs that provide down payment assistance. Buyers can research interest rates and loan terms on the Internet in order to obtain the most advantageous loan. The City of Palmdale has two Mortgage Assistance Programs, one that provides down payment assistance to first-time homebuyers of single family homes; the other assists low-income households to purchase new mobile homes. Each of these programs plans on providing assistance to about 220 lower- income homebuyers between 2000 and 2005. 2 “Lenders Keen on financing Apartments.” (February 15, 2000). Los Angeles Times Business Section, Page Cc-11.) ---PAGE BREAK--- Housing H-80 Adopted by City Council 04/11/01 SECTION 8. PRESERVATION OF AT-RISK HOUSING UNITS Section 65583(a)(8) of California housing element law requires each city and county to conduct an analysis of assisted housing units in its jurisdiction that are at risk of conversion to market rates within ten years. The analysis must include an inventory of all such units, an estimate of the cost of preserving the existing units or producing comparable new units and the availability of nonprofit corporations capable of acquiring and operating these units. Possible financing sources for preservation or replacement must also be identified. Finally the analysis must state the community’s goals, quantified objectives, policies and programs for housing preservation and productions. This analysis covers the ten-year period between 2000 and 2010. A. Identification of At-Risk Units Overview of At-Risk HUD-Assisted Multifamily Housing Section 221 and 236 Mortgages In the 1960s and 1970s the federal government provided a number of different types of subsidies to private developers to build housing with rents affordable to low-income households. Two of these programs, Section 221 Below Market Interest Rates (BMIR) and Section 236 were targeted to households whose incomes were too high for public housing but who could not afford market rents. Reduced interest rates of only 1% to 3% were granted in exchange for agreements that made rents affordable for at least 20 years. After 20 years, owners could pre-pay their 40-year HUD mortgages and raise their rents to market rates. In the 1970s and later, when it became necessary to more deeply subsidize units and offset operating cost deficits, HUD added a new subsidy program, Section 8 Loan Management Setaside. Nearly half of the units in the 221(d)(3) BMIR and 236 programs also have the Section 8 setaside. Section 8 Project-Based Units Congress created the Section 8 New Construction and Substantial Rehabilitation Program in 1973. Unlike the Section 8 tenant assistance program which provides vouchers to individual households, these project-based subsidies were attached to the unit. However, the subsidies did not run for the life of the project, instead HUD provided a 15 or 20-year commitment for rental subsidies. Tenants were required to pay 25% (now 30%) of their incomes for rent. HUD sets a “contract rent” for the units and then pays the difference between that rent and the tenant’s payment. Families and individuals earning no more than 80% of area median income are eligible for these units. ---PAGE BREAK--- Housing Adopted by City Council H-81 04/11/01 According to the California Housing Partnership Corporation, in 1997 Congress changed the rules governing Section 8 contracts when it adopted the Multifamily Assisted Housing Reform and Affordability Act (MAHRAA). This legislation provides funding for expiring Section 8 units. Owners are not obligated to renew expiring Section 8 units or to maintain the affordability of their units. Instead, if they choose, they can decline to renew the Section 8 contracts and raise their rents to market rates. Owners of many buildings subsidized by Section 221 and 236 are now eligible to pre-pay their mortgages. In order to do so, the owner must file a notice of intent and provide substantial notice to HUD and to tenants. In properties that also have Section 8 Loan Management Setaside contracts, the owner’s decision to pre-pay the underlying loan and opt out of the Section 8 contract will probably be influenced by whether the Section 8 rents are higher or lower than the market rents in the surrounding area. In areas where market rates are higher, the owner may want to pay off his HUD obligation so that he/she can charge market rates as soon as the Section 8 contract expires. California law requires owners of HUD-subsidized buildings who put these buildings on the market to give nonprofit organizations the first right of refusal. Mark to Market When the Section 8 contracts expire in buildings with HUD mortgages or HUD mortgage insurance, owners will have to apply for annual renewals of the Section 8 contracts. At the time of the initial renewal HUD will survey market rents in the project area and adjust building rents accordingly. In projects where contract rents are above market rates in the area the owner is likely to have very large mortgage payments. HUD will bring the rents to within 110% or 120% of the market rents by restructuring the mortgage. Owners of these buildings will probably want to sell or restructure; if the rents are considerably above the market, there won’t be any incentive to convert to market rates. Mark-Up To Market In buildings where HUD’s renewal market study shows that rents are below market rates, HUD will probably raise the contract rents. Nevertheless, owners of these buildings are the most likely to convert to market rates and, if they have Section 236 financing, to prepay their mortgages. However, the ability to prepay the HUD mortgage depends on whether market rents in the area are high enough to refinance the mortgage and pay for whatever renovations are necessary in a 20 or 30-year old building. Mortgage Revenue Bond-Assisted Properties ---PAGE BREAK--- Housing H-82 Adopted by City Council 04/11/01 There are three properties in Palmdale financed with mortgage revenue bonds in which 20% of the units are affordable to low-income households. As shown in Table 24, these properties have a total of 692 units of which 139 are affordable to households with incomes at or below 50% of the area median income. All have been refinanced with locally issued bonds. The bond finance for Manzanita Villas with 29 affordable units terminates in 2007. Bonds in the other two projects have termination dates of 2023 and 2035 respectively. Therefore, only the project with 29 affordable units is at risk in this planning period. Units Owned by Southern California Housing Development Corporation The City issued additional mortgage revenue bonds between 1995 and 2000 to assist a nonprofit organization, Southern California Housing Development Corporation, buy four buildings and make the units affordable for 55 years. In these buildings, half the units are affordable to households at 50% of median income and half are affordable to households earning 40% of median income. B. Units at Risk of Converting to Market Rates Of the units listed in the three tables above, only one of the bond projects with 29 affordable units expires in the next ten years. The rent in the 284 units assisted with City of Palmdale redevelopment set-aside funds are all restricted for 55 years. The 157 mobile home park spaces affordable to households earning 80% of median income are similarly restricted. But about 30% of the 404 units with federal subsidies are at risk of converting to market rates during the 10-year study period. In fact, some of these units may convert during the next five years. Overall, 384 subsidized units in Palmdale may lose their federal subsidies in the next 10 years, along with 29 units that could lose their local subsidy by 2007. Only two federally subsidized projects with 122 units have below market interest-rate mortgages that would have to be prepaid. All the rest are subsidized only with Section 8 contracts. All these projects have Section 8 contracts that expire in the next three years. At the time of expiration the owners can simply decide not to apply for renewal of the contracts. ---PAGE BREAK--- Housing Adopted by City Council H-83 04/11/01 Table H-25 Locally Subsidized Affordable Housing Project Name Project Address Owner Name Owner Address Subsidy Type Unit type Total Low/Mod Units Units Bond Expiration Date Manzanita Villas 570 Knollview Court Palmdale, CA 93551 Westrich Enterprises Ltd./ Griffin Dev. Company 24005 Ventura Blvd. Calabasas, CA 91302 Local Mortgage Revenue Bond Family 144 29 2007 Carmel Apartments 38722 11 Street East Palmdale, CA 93550 Investment Concepts, Inc. 777 S. Main Street, #161 Orange, CA 92666 Local Mortgage Revenue Bond Family 112 23 2023 Oasis Apartments 38300 11th Street East Palmdale, CA 03550 336 Ltd/Oregon Ltd. 38300 30th Street East Palmdale, CA 93550 Local Mortgage Revenue Bond Family 336 67 2025 Summerwood Apartments 38272 11th Street East Palmdale, CA 93550 Southern Calif. Hsing Dev. Corp. 8265 Aspen Street, Suite 100 Rancho Cucamonga, CA 901730 Multifamily Housing Revenue Bond Family 54 52 2/1/2028 La Quinta Apartments 38301 11th Street East Palmdale, CA 935550 Southern Calif. Hsing Dev. Corp. 8265 Aspen Street, Suite 100 Rancho Cucamonga, CA 91730 Multifamily Housing Revenue Bond Family 100 98 7/1/2028 Park Vista Apartments 38204 11th Street East Palmdale, CA 93550 Southern Calif. Hsing Dev. Corp. 8265 Aspen Street, Suite 100 Rancho Cucamonga, CA 91730 Multifamily Housing Revenue Bond Family 28 27 7/1/2028 ---PAGE BREAK--- Housing H-84 Adopted by City Council 04/11/01 Table H-25 Locally Subsidized Affordable Housing (Con’t) Project Name Project Address Owner Name Owner Address Subsidy Type Unit type Total Low/Mod Units Units Bond Expiration Date Impressions Apartment 38045 10th Street East Palmdale, CA 93550 Southern Calif. Hsing Dev. Corp. 8265 Aspen Street, Suite 100 Rancho Cucamonga, CA 91730 Multifamily Housing Revenue Bond Senior 109 107 7/1/2028 Total 883 403 Source: City of Palmdale Redevelopment Agency Housing Division/Consolidated Plan Table H- 26 Locally Subsidized Mobile Home Parks Project Name Project Address Owner Name Owner Address Subsidy Type Unit type Total Moderate Income Spaces Bond Expiration Date Boulders at the Ranch 1 40701 Rancho Vista Blvd. Palmdale, CA 93550 LINC Housing 110 Pine Ave., suite 525 Long Beach, CA 90802 Tax-Exempt (Series A) and Taxable (Series B) Bonds secured by Housing Set-Aside funds Mobile Home Park 358 9/21/2027 for Series A 9/1/2007 and 9/1/2027 for Series B Boulders at the Ranch II 5200 Entrar Drive Palmdale, CA 93551 LINC Housing 110 Pine Ave., suite 525 Long Beach, CA 90802 Same as above Mobile Home Park 206 same as above Boulders at the Lake 1030 East Avenue S Palmdale, CA 93551 LINC Housing 110 Pine Ave., suite 525 Long Beach, CA 90802 Same as above Mobile Home Park 222 same as above Total 786 Source: City of Palmdale Redevelopment Agency Housing Division/Consolidated Plan ---PAGE BREAK--- Housing Adopted by City Council H-85 04/11/01 Table H-27 Federally Subsidized Units Project Name Project Address Owner Name Owner Address Subsidy Type Unit type Total Units Terminatio n FHA Termination Section 8 Palmdale Park Apartments 38002 15th Street East Palmdale, CA 93550 Eugene Berger Man. Corp. 1570 Brookhollow Dr. Suite 116 Santa Ana, CA 92705 (714) 540-3711 Section 236 (3rd Prepayment Notice Filed 4/2000) Family 58 2013 10/31/2000 Section 8 renewal application filed Palmdalia Apartments 38040 11th Street East Palmdale, CA 93550 Eugene Berger Man. Corp. 1570 Brookhollow Dr. Suite 116 Santa Ana, CA 92705 714) 540-3711 Section 236 Family 64 2013 9/30/2000 Palmdale Gardens 38601 10 St. East Palmdale, CA 93550 FHA 122-354-24 National United Properties 3600 Wilshire Blvd., Suite 1020 Los Angeles, CA 90010 (213) 736-0441 Section 221 Senior 76 N/A 06/30/2001 Palmdale East Q 1000 E. Avenue Q Palmdale, CA 93550 FHA 122-354-42 Goldrich & Kest 5150 Overland Ave. Culver City, CA 90230 Section 221 Family 90 N/A 10/17/2000 East 35th St. Apartments 37929 35th Street East Palmdale, CA 93550 Goldrich & Kest 5150 Overland Ave. Culver City, CA 90230 Section 221 Family 48 N/A 05/23/2003 Palmdale Desert Club Apts. 37902 N. 20th Street Palmdale, CA 93550 Palmdale Desert Club 17200 Ventura Ste. 312 Encino, CA 91376 Section 221 Family 80 N/A 07/28/2003 ---PAGE BREAK--- Housing H-86 Adopted by City Council 04/11/01 Table H-27 Federally Subsidized Units (Con’t) Project Name Project Address Owner Name Owner Address Subsidy Type Unit type Total Units Termination FHA Termination Section 8 Village Garden Apartments 1020 East Ave. R Palmdale, CA 93550 Eugene Berger Man. Co. 1570 Brookhollow Dr. Ste.116 Santa Ana, CA 92705 Section 811 Family 80 N/A 09/13/2003 Queens Twelve 37979 35th Street East Palmdale, CA 93550 FHA 122-355-58 Manfric, Inc. 1915 Morena Blvd. San Diego, CA 92110 (619) 276-6271 Units sold and restructured with tax credits Family 12 06/07/2002 Stanridge Homes 38941 Stanridge Palmdale, CA Manfric, Inc. 1915 Morena Blvd. San Diego, CA 92110 (619) 276-6271 Units sold and restructured with tax credits Family 6 N/A 11/02/2010 Stanridge Homes 38905 Stanridge Palmdale, CA Manfric, Inc. 1915 Morena Blvd. San Diego, CA 92110 (619) 276-6271 Units sold and restructured with tax credits Family 6 N/A 11/02/2010 Stanridge Homes 18940 Stanridge Palmdale, CA Manfric, Inc. 1915 Morena Blvd. San Diego, CA 92110 (619) 276-6271 Units sold and restructured with tax credits Family 6 N/A 11/02/2010 Casablanca Apartments 4160 East Ave. R Palmdale, CA 93552 Solari Enterprises 4160 East Ave. R Palmdale, CA 93552 Tax Credits Family 200 N/A 2055 Source: Palmdale Redevelopment Agency, California Housing Partnership, Los Angeles HUD Office, Housing Authority of the County of Los Angeles ---PAGE BREAK--- Housing Adopted by City Council H-87 04/11/01 Units Financed with Section 236 and Section 8 There are two buildings financed with Section 236 and Section 8 with that are at high risk of conversion to market rents. The two buildings, with a combined 122 units, both have Section 8 contracts that expire this year. Palmdale Park Apartments, with 58 two and three-bedroom units, has already filed its third prepayment notice. Eugene Berger Management Corporation, which manages Palmdale Park Apartments and Palmdalia Apartments, is planning a market study to determine whether to opt out of the Section 8 contracts for these two projects and to evaluate whether to prepay the Section 236 loan for Palmdalia Apartments. The Section 8 contract rents in Palmdale Park and Palmdalia Apartments are lower than market rents in Palmdale. Eugene Berger Management Corporation has already converted units in other location to market rates. A look at the rents in one of the Section 236 buildings explains why this project might convert to market rents. According to the management company, the rents in Palmdalia Apartments are $437 per month for two-bedroom apartments and $548 per month for three-bedroom apartments. Table 16 shows that average market rents in Palmdale for comparable apartments are $568 per month for two-bedroom apartments and $657 per month for three-bedroom apartments. Palmdale Park Apartments has filed an application for renewal of its Section 8 contract; HUD has not yet received a renewal application from Palmdalia. When the renewal applications are processed, HUD may raise the contract rents to parity with market rents in Palmdale. Then the owners will have to evaluate whether the new rents provide sufficient incentive to stay in the program. Other options are to prepay the Section 236 mortgage if cash flow permits or sell the building. If the owners do decide not to renew the Section 8 contract, the tenants will all receive Section 8 tenant assistance vouchers. The vouchers are portable so the tenants could decide to move elsewhere, particularly if the building is poorly managed or in poor condition. But if the building is in good shape and is well managed, the tenants might decide to stay. Moving would involve finding an owner who would accept the voucher, obtaining Housing Authority approval of the condition of the unit, and expending a considerable amount of money on the security deposit and moving expenses. Units Financed with Project-Based Section 8 Eugene Berger Management Corporation also manages Village Gardens Apartments, an 80-unit building financed with Section 811 project-based Section 8. The contract expires in September 2003. Rents in this building are somewhat above average for Palmdale. They may or may not be considered above market, depending on rents in comparable buildings. ---PAGE BREAK--- Housing H-88 Adopted by City Council 04/11/01 Palmdale East Q, Palmdale Gardens, East 35th Street Apartments and Palmdale Desert Club Apartments all have Section 221(D)(4) mortgage insurance and Section 8 project- based subsidies. The Section 8 contracts all expire in the next three years. The 221(D)(4) insurance does not restrict rents in any way. These buildings have Section 8 contract rents (the amount of rent the owner receives from the combined payments from HUD and the tenant) that are above market rents in Palmdale; at least one building has contract rents that are double the average rent for a two-bedroom apartment in 2000. They are not likely to opt out of Section 8 before the contracts expire. But when these projects apply for renewal of their Section 8 contracts, HUD will conduct a study of Palmdale rents and, under the Mark to Market program, may reduce the rents in the new contracts. At that point, if project income is too severely restricted by restructuring, the owners may want to sell the units The Section 8 contract for Palmdale Gardens, a building with 76 senior units, expires in 2001. When the property manager, National United Properties was contacted, staff indicated that no changes in the status of the building are planned at this time. The contract rent in this building is $661 for a one-bedroom unit. It could be considered above market since average Palmdale rent for a one-bedroom is $477 per month. According to another management company, Manfric, Inc., four Section 8 buildings with 30 units, Queens Twelve and Stanridge Homes 1, 2, and 3 were recently sold and refinanced with tax credits. C. Cost and Resources for Replacement or Preservation Replacement Cost Casablanca Apartments, a 200-unit tax credit project in Palmdale completed this year by Am-Cal Development, spent $100,000 per unit. However, school fees have been raised since this project was approved. The City of Palmdale estimates that current construction costs for a fourplex of 1,400 square foot units plus carports at a density of 10 units per acre would be $112,971 per unit. This includes a school fee for multifamily units of $6,300 per unit. (See Table H-24) At the $112,000 per unit for multifamily development estimated by Table 23, the cost to replace the 384 at-risk units in Palmdale would be $43 million. Some cost savings could be achieved if the buildings were built on land zoned for 10.1 to 16 units an acre and the project granted a 25% density bonus and a parking reduction. Palmdale Park Apartments has already filed a third notice of its intent to prepay its Section 236 loan. This year the Section 8 contracts for Palmdale Park Apartments and Palmdalia Apartments expire. These two buildings with a combined 122 units are the ---PAGE BREAK--- Housing Adopted by City Council H-89 04/11/01 at-risk projects most likely to convert to market rents and could do so within the next several years. At $112,000 per unit for land, construction and fees, the cost to replace these 122 units would be $13.7 million. Using bond finance, an equity investment based on 4% tax credits and City gap finance, the sources of funds for this project would be: Bond funds, $8.63 million, tax credit equity investment, $4.52 million and City funds, $550,000. Palmdale has an additional 262 units with Section 8 project-based contracts. These units are in five different projects. Replacement costs for these 262 units would be $29.3 million. If project finance were structured like the first 122 units, replacing these units would require $18.5 million in bond finance, a $9.7 million tax credit investment and $1.17 million in City housing set-aside funds. Additional sources of project finance could include the California Department of Housing and Community Development’s a new multifamily housing program, which will issue its first request for proposals in September 2000, and the Federal Home Loan Bank’s Affordable Housing Program Grant. Bond funds can be issued by the City or a private entity. Table H-28 Replacement Cost for At-Risk Units Number of Units Cost Per Unit Replacement Cost Sources 122 federal $112,000 $13.7 million $8.63 Bond Finance 4.52 Tax Credit Equity .55 City-Redevelopment $13.7 million 262 federal $112,000 $29.3 million $18.5 Bond Finance 9.7 Tax Credit Equity 1.1 City-Redevelopment $29.3 million 29 local $112,000 $3.3 million $2.1 Bond Finance 1.2 City-Redevelopment $3.3 million 413 total units $ 46.3 million Source: Karin Pally Associates and Squier Properties Cost of Purchase If the owners of Palmdale Park Apartments and Palmdalia Apartments decided to sell, these units might sell for between$25,000 and $30,000 per unit, depending on ---PAGE BREAK--- Housing H-90 Adopted by City Council 04/11/01 condition.1 At $25,000 per unit, the cost to purchase the units would be $3.05 million. At $30,000 per unit, the cost would be $3.66 million. However, the units probably need rehabilitation. Michael Adams, Housing Manager of the Palmdale Redevelopment Agency estimates renovation costs for older Palmdale units at between $10,000 and $20,000 per unit. The cost to purchase and rehabilitate 122 units would therefore be between $4.27 million and $6.1 million. If this project cost $4.27 million and were financed with a combination of bond proceeds, the 4% tax credit and City gap funds, it would require a bond-financed loan of $2.7 million, a tax credit investment of $1.55 million and City gap finance of $188,000. If the cost for purchasing and rehabilitating the remaining 262 units were an average $40,000 per unit, ($25,000 purchase, $15,000 rehabilitation or $30,000 purchase and $10,000 rehabilitation), the total amount needed for acquisition and rehabilitation of these units would be $10.48 million. Table H-29 Purchase and Rehabilitation of At-Risk Units Number of Units Purchase Cost Rehab Cost Total Per Unit Total Cost Sources 122 federal $30,000 $10,000 $40,000 $4.88 million $3.07 Bond Finance 1.61 Tax Credit Equity .20 City Redevelopment $4.88 million 262 federal $30,000 $10,000 $40,000 $10.48 million $6.60 Bond Finance 3.45 Tax Credit Equity .43 City Redevelopment $10.48 million 29 local $25,000 $15,000 $40,000 $1.16 million $1.16 City Redevelopment $1.16 million 413 total units $16.52 million Source: Karin Pally Associates and Squier Properties 1 In August Palmdale Multiple Listings had multifamily buildings ranging from 10 unit to 18 units in size. These buildings were about 15 years old. They ranged in price from $29,000 to $34,000 per unit. According to Michael Adams of the Palmdale Redevelopment Agency, the sales price of units in larger buildings ranges from $25,000 to $30,000 per unit, depending upon condition. ---PAGE BREAK--- Housing Adopted by City Council H-91 04/11/01 D. Organizational Resources for Preservation or Replacement Public Agencies and Nonprofit Corporations Federal and state law require that when owners of buildings with expiring federal subsidies decide to sell those buildings, they must offer the right of first refusal to nonprofit corporations capable of operating multifamily housing. Palmdale Park Apartments has already filed a third prepayment notice but has not yet indicated any interest in selling. There are no nonprofit housing development corporations located in Palmdale. However, the Southern California Housing Development Corporation now owns and operates four multifamily buildings in Palmdale that were purchased and rehabilitated with loans from the City’s redevelopment housing set-aside. Table H-27 provides a list of nonprofit entities in Southern California that are interested in the right of first refusal program. Table H-30 Public Agencies and Nonprofit Corporations Organization Contact Name Address Phone Southern California Housing Development Corporation Rebecca Clark, Executive Director 8265 Aspen Street, Suite 100 Rancho Cucamonga, CA 901730 (909) 483-2444 Los Angeles Community Design Center Robin Hughes, Executive Director 315 W. 9th Street #410 Los Angeles, CA 90022 (213) 629-2702 L. A. County Community Development Commission Carlos Jackson, Executive Director 2 Coral Circle Monterey Park, CA 91755 www.lacdc.org (323) 890-7001A A Community of Friends Monique Lawshe, Executive Director 3345 Wilshire Bl. #1000 Los Angeles, CA 90010 (213) 480-0809 Other Organizational Resources The two nonprofits listed below provide information and technical assistance for preservation of at-risk housing to tenants, property owners, city staff, and other groups. Both these organizations have offices in the City of Los Angeles. ---PAGE BREAK--- Housing H-92 Adopted by City Council 04/11/01 The California Housing Partnership Corporation (CHPC) is chartered by the state legislature to provide education and technical assistance concerning expiring uses issue to cities, nonprofits and tenants. CHPC has offices in Los Angeles and San Francisco. Staff at the Los Angeles office can be contacted at: Paul Beesmyer California Housing Partnership Corporation 911 Wilshire Boulevard, Suite 1770 Los Angeles, CA 90017 (213) 892-8775 The Coalition for Economic Survival, located in the City of Los Angeles, provides information and assistance on expiring use issues to tenants, nonprofit housing organizations and to City staff. Franklin Campos Coalition for Economic Survival 1296 N. Fairfax Avenue Los Angeles, CA 90046 (323) 656-4410 ---PAGE BREAK--- Housing H-94 Adopted by City Council 04/11/01 SECTION 10. GOALS, OBJECTIVES, POLICIES AND PROGRAMS Appropriateness of goals, objectives and policies In the following sections, the City sets forth its goals, objectives, policies and programs for 2000-2005. As always, the City is able to provide more than enough sites for its fair share of new housing development. After a long period of rapid growth, a construction slowdown in the late 1990s allowed the City to take stock and begin to focus on the need for restoration of its aging downtown areas. Based on a survey of housing conditions in Palmdale’s older areas, the City will focus resources on housing rehabilitation and infrastructure improvements in targeted older neighborhoods. New construction of affordable units will be directed to infill sites in already developed areas. The City will also encourage market rate development of infill sites where ownership units can be made more affordable at densities of 6.1 to 10 units per acre. Lower income home ownership opportunities will be emphasized with down payment assistance loans for single family houses and mobile homes. The City’s South Antelope Valley Emergency Services (SAVES) program will continue to provide motel vouchers and other emergency assistance to homeless individuals and families. The Palmdale Redevelopment Agency will acquire land for additional low-income senior units. New housing in Palmdale will no longer be as affordable as it was in the late 1980s and early 1990s. Several land use measures designed to create more affordable new housing such as a voluntary inclusionary units and small lot, wide-shallow lot and other alternative land use patterns that were included in the last element but not implemented, are once again proposed for the new planning period. Given the changes in new home prices, the time may now be right for implementation of these measures. GOAL H1: PROMOTE THE CONSTRUCTION OF NEW HOUSING AFFORDABLE TO ALL INCOME GROUPS Objective H1.1.1: Provide adequate sites at a range of densities to accommodate future housing needs. Policy H1.1.1: Encourage a variety of housing types such as single family attached (townhouses), multifamily units, planned unit developments and other housing types that make housing more affordable. Policy H1.1.2: Encourage the development of new affordable units through the provision of incentives. ---PAGE BREAK--- Housing Adopted by City Council H-95 04/11/01 Policy H1.1.3: Encourage the development of housing affordable to lower income groups in areas well served by public transportation, schools, retail and other services. Policy H1.1.4: Ensure that all necessary support services can be provided to new developments. Policy H1.1.5: Replace housing units demolished by the redevelopment agency for redevelopment projects. Policy H1.1.6: Enforce minimum standards for new residential construction as provided by the Citywide Zoning Ordinance adopted in 1994. Policy H1.1.7: Expedite permit processing. Program H1.A: New Housing Development Provide adequate sites for the development of 9,878 new housing units between January 1998 and June 2005. This is Palmdale’s Fair Share of regional housing growth established by SCAG’s 1998-2005 Regional Housing Needs Assessment. Responsible Agency: Planning Commission and City Council. Implementation Actions Target Date Approve residential development applications 2000-2005 consistent with the General Plan polices and with Zoning Regulations. Program H1.B: Density Bonus Ordinance Provide a 25% density bonus for housing developers who make 10% of their units affordable to households earning 50% of median income or 20% of units affordable to households earning 60% of median income in accordance with California Government Code 65915. Responsible Agency: Planning Department Implementation Actions Target Date Administer an ongoing program. 2000-2005 ---PAGE BREAK--- Housing H-96 Adopted by City Council 04/11/01 Program H1.C: Second Unit Ordinance Approve second units constructed pursuant to California Government Code Section 65852.1-65852.2 according to criteria and procedures established by the City’s zoning code. Responsible Agency: Planning Department Implementation Actions Target Date Administer an ongoing program. 2000-2005 Program H1.D: Alternate Housing Types Evaluate the feasibility of permitting small single family residential lots in areas designated for Medium Residential on the City’s General Plan Land Use map. Consider wide, shallow lots for attached unit development and other innovations. Responsible Agency: Planning Department Implementation Actions Target Date Conduct a study of development standards in other August 2001 communities to determine feasibility of allowing smaller single family lots in the R-2 zone and alternatives to the current City standards for lot configuration of attached housing. Make recommendations to Planning Commission December 2001 and City Council. Program H1.E: Mortgage Assistance Program (MAP) Provide assistance to qualified first-time homebuyers in the form of $25,000 due-on-sale soft second loans for down payments. As a business development incentive, provide down payment assistance loans to employees of businesses that relocated to Palmdale (General Plan Amendment 04-04, adopted by City Council July 26, 2004.) Responsible Agency: Redevelopment Agency, Housing Division Implementation Actions Target Date Administer an ongoing program as resources permit. 2000-2005 ---PAGE BREAK--- Housing Adopted by City Council H-97 04/11/01 Program H1.F: Mobile Home First Time Homebuyer Program Provide down payment assistance to first time homebuyers who wish to purchase a new mobile home to be placed in one of the three LINC-owned mobile home parks. This program is funded by the City’s Redevelopment Set-Aside and HOME funds awarded to Palmdale by the California Department of Housing and Community Development. The program objective is 150 loans over five years, depending upon funding availability. Responsible Agency: Redevelopment Agency Implementation Actions Target Date Develop program guidelines June 2001 Administer a new program to provide 150 loans over five years. July 2001-2005 Program H1.G: Affordable Housing Land Bank Acquire land for the new construction of affordable single and multifamily housing units using the redevelopment housing set-aside and other funds as appropriate. In the current planning period, the Redevelopment Agency is acquiring land in an area of the City near Courson Park. Once land has been assembled, about 200 affordable senior units will be constructed. Land will also be acquired for the construction of six to eight affordable homes by Habitat for Humanity. Under this program land is also acquired to build replacement units for housing demolished by the Redevelopment Agency. Responsible Agency: Redevelopment Agency Implementation Actions Target Date Acquire land and initiate a design process 2000 -2005 Construct 100-300 senior units 2006 -2010 Program H1.H: Affordable Housing Construction Program Provide funding in the form of either land or low-interest, deferred interest or residual receipts loans to nonprofit affordable housing organizations to construct new affordable units to replace units demolished by public actions and to build new affordable housing in compliance with state redevelopment law. As needed, provide predevelopment grants or loans to these projects. ---PAGE BREAK--- Housing H-98 Adopted by City Council 04/11/01 Responsible Agency: Redevelopment Agency Implementation Actions Target Date Administer an ongoing program and develop new 2000-2005 guidelines as needed GOAL H2: PRESERVE AND IMPROVE THE EXISTING SUPPLY OF AFFORDABLE HOUSING Objective H2.1: Bring existing housing units up to an established standard of habitability. Policy H2.1.1: Enforce existing standards of habitability Policy H2.1.2: Provide rehabilitation assistance to homeowners and to owners of multifamily rental housing when those owners agree to maintain the affordability of assisted units. Policy H2.1.3: Provide grants and loans to owner-occupants of single family homes and mobile homes for emergency repairs and rehabilitation. Policy H2.1.4: Require that all units developed under any of the City affordable housing programs remain affordable for the longest possible time or at least 30 years. Program H2.A: Single Family Rehabilitation Loan Program Provide rehabilitation loans from redevelopment set-aside funds to owner-occupants of single family houses and mobile homes who earn 80% or less of the area median income. This is a three-tiered program with loan amounts for housing improvement of $10,000, $15,000, or $20,000. Simple Interest is accrued at 3% per year with a 15-year term. The 5-year objective for this program is 125 loans. Responsible Agency: Redevelopment Agency Implementation Actions Target Date Administer an ongoing program 2000-2005 ---PAGE BREAK--- Housing Adopted by City Council H-99 04/11/01 Program H2.B: Multifamily and Single Family Rental Unit Rehabilitation Program Make low-interest loans from redevelopment set-aside funds to owners of both single and multifamily rental properties. Owners must agree to rent their properties to eligible low-income households and to maintain the affordability of the assisted units for a period of 30 years. Responsible Agency: Redevelopment Agency Implementation Actions Target Date Administer an ongoing program 2000-2005 Program H2.C: Emergency Grant Program Provide one-time grants for housing repairs to very low-income (50% of median or less) owner-occupants of single family mobile homes. The grant amount cannot exceed $3,000. Responsible Agency: Redevelopment Agency Implementation Actions Target Date Administer an ongoing program. 2000-2005 Objective: H2.2: Maintain the affordability of leased mobile home spaces for seniors and low-income families. Policy H2.2.1: Use regulatory and financial tools to make mobile home spaces permanently affordable. Program H2.D: Mobile Home Space Rent Control This ongoing program regulates increases in month to month rent costs for mobile home park spaces to ensure that the spaces remain affordable to low and moderate income occupants. Responsible Agency: Mobile Home Park Rental Review Board Implementation Actions Target Date Administer an ongoing program. 2000-2005 ---PAGE BREAK--- Housing H-100 Adopted by City Council 04/11/01 Program H2.E: Enforcement of Mobile Home Park Lease Terms Ordinance Enforce a City ordinance forbidding owners of mobile home parks to require any resident or prospective resident to sign a lease or rental agreement that exempts the space from local rent control. Under state law, leases longer than 12 months are exempt form rent control. Responsible Agency: City Attorney Implementation Actions Target Date Process complaints and take corrective action. Ongoing Program H2.F: Mobile Home Park Homeownership and Rehabilitation Provide an operating subsidy as needed to maintain affordability of spaces in three mobile home parks purchased by LINC with assistance from the City. Responsible Agency: Redevelopment Agency Housing Division Implementation Actions Target Date Continue to provide operating subsidy until parks are 2000-2005 self-supporting. $1.55 million budgeted in 2000 Objective H2.4: Preserve existing units with expiring federal, state or local subsidies. Policy H2.4.1: Preserve or replace units with expiring subsidies. Program H2.G: Mortgage Revenue Bond Program The City has the power to issue mortgage revenue bonds for purchase and rehabilitation or new construction. These bonds could be used to preserve the affordability of housing that is at-risk of losing local or federal subsidies. Responsible Agency: Redevelopment Agency Implementation Actions Target Date Administer an ongoing program. 2000-2005 ---PAGE BREAK--- Housing Adopted by City Council H-101 04/11/01 GOAL H3: REMOVE GOVERNMENT CONSTRAINTS ON HOUSING Objective H3.1 Reduce or remove government restraints on housing as necessary and feasible. Policy H3.1.1: Assess financial impacts of zoning changes on housing affordability. Program H3.A: Housing Impact Review As part of the CEQA process, review housing impacts of proposed City policies, programs, and actions for consistency with RHNA fair share projections and prepare an assessment letter for submittal to the California Department of Housing and Community Development when adverse impacts are identified that would preclude meeting RHNA fair share numbers. Housing impact assessments are required for zone changes, development fees and amendments to the General Plan. Housing impact assessments will evaluate the effects of proposed actions on the provision and preservation of housing for low and moderate-income households. The assessments will propose mitigation measures where necessary. Responsible Agency: Planning Department Implementation Actions Target Date Through the CEQA process, consider impacts on Ongoing 2000-2005 housing opportunities for each zone change, General Plan amendment or Zoning Ordinance amendment. GOAL H4: PROMOTE EQUAL HOUSING FOR ALL PERSONS REGARDLESS OF RACE OR COLOR, RELIGION SEX, FAMILIAL STATUS, ANCESTRY OR HANDICAP (California’s Fair Employment and Housing Act protects against housing discrimination on the basis of color, disability--including AIDS or HIV status–familial status, marital status, national origin, race, religion, sex, sexual orientation and source of income.) Objective H4.1: Promote fair housing practices and prohibit discrimination. Policy H4.1.1: Ensure compliance with fair housing laws by adopting development guidelines that encourage the development of mixed income housing in every zone district and in every area of the community. ---PAGE BREAK--- Housing H-102 Adopted by City Council 04/11/01 Policy H4.1.2: Assess need for fair housing services and develop a comprehensive program for fair housing public information, education, investigation, enforcement and testing. Policy H4.1.3: Prohibit discrimination in housing. Program H4.A: Fair Housing Services When contract with current fair housing provider expires, assess need for fair housing services, adjust budget accordingly and contract with a fair housing provider to provide fair housing services to Palmdale residents that include public information on fair housing law, training in fair housing law for property managers, realtors, and lenders, and investigation of fair housing complaints. Include services for investigating complaints of in-place tenants. Consider cooperating with the City of Lancaster to fund a fair housing office in the Antelope Valley. Conduct periodic audits to assess compliance with fair housing laws. Responsible Agency: Redevelopment Agency Implementation Actions Target Date Continue contract with San Fernando Valley Fair Housing July 2000-June 2001 Council to provide fair housing services in Palmdale. Either renew existing contract or Issue new RFP and June 2001 select new fair housing contractor. Implement continued fair housing services under new July 2001-2005 contract. Program H4.B: Fair Housing Affirmative Marketing Practices Provide information to managers of rental housing who participate in PAC landlord training on compliance with affirmative marketing practices. Continue to provide fair housing information in the PAC property management training program for lenders who participate in the mortgage assistance programs. Responsible Agency: Redevelopment Agency and City Attorney Implementation Actions Target Date Administer an ongoing program 2000 -2005 ---PAGE BREAK--- Housing Adopted by City Council H-103 04/11/01 Program H4.C: Fair housing review of zoning code Review zoning code for fair housing compliance. Responsible Agency: Planning Department/City Attorney Implementation Actions: Target Date Review zoning ordinance and, if necessary, make December 2001 recommendations to Planning Commission GOAL H5: ADEQUATELY HOUSE HOUSEHOLDS WITH SPECIAL NEEDS Objective H5.l: Expand the supply of affordable housing for senior citizens. Policy H5.1.1: Permit a variety of housing types for seniors including dependent housing units and congregate housing with services. Policy H5.1.2: Support independent living for the elderly and disabled. Policy H5.1.3: Establish and maintain standards for units designated as senior units to ensure that these units are accessible and convenient for older persons. Policy H5.1.4: Encourage creation of senior housing with convenient access to transportation and commercial, recreational, cultural, civic and senior services by establishing a Senior Housing Target Area near the Senior Center in downtown Palmdale and by providing financial incentives for development of senior housing units in this target area. Policy H5.1.5: Conduct a design review to ensure that units designated as senior units are accessible and meet established design guidelines for such units. Program H5.A Temporary Dependent Housing Units Pursuant to Sections 26.05 and 91.02 of the Zoning Ordinance, permit temporary dependent housing units in single family R-1 zones subject to administrative approval by the Planning Director. A temporary dependent housing unit (TDH) is defined as a detached or attached dwelling unit intended for the sole occupancy of one or two adult persons who have reached the age of 62 years or are handicapped. A TDH unit provides for complete, independent living facilities for one or two persons. ---PAGE BREAK--- Housing H-104 Adopted by City Council 04/11/01 Responsible Agency: Planning Department Implementation Actions Target Date Administer an ongoing program 2000-2005 Program H5.B: Senior Housing Development Section 91.04 of the Zoning Ordinance establishes development standards for senior group housing. Congregate care facilities which do not provide individual kitchens for residents are exempt from General Plan density provisions applicable to the particular parcel(s). Otherwise, the parcels on which senior group housing is constructed must conform to all standards of the underlying land use district. Senior housing is limited to units occupied by one person over age 55 or married couples of which one spouse is over age 55. Responsible Agency: Planning Department Implementation Actions Target Date Administer an ongoing program. 2000-2005 Program H5.C: Senior Housing Construction Program Acquire land and provide financing for affordable senior housing. The redevelopment agency has two long-term projects to develop senior housing. The first, in the Courson district downtown, will acquire land in 2000-2005 sufficient to construct approximately 200 senior units. This area was designated as a Senior Housing Target Area by the City Council in 1999. An architect will be selected and a design process begun with completion of construction expected in 2005-2010. The second project, which is being developed by a private sector hospital, is a progressive care campus for seniors. Funds for a feasibility study have been allocated in this planning period. Responsible Agency: Redevelopment Agency, Housing Division Implementation Actions Target Date Acquire land in the Courson district 2000-2004 Select architect, Begin design process for 2004-2005 Courson Senior Housing Study feasibility of progressive care campus in 2000-2002 ---PAGE BREAK--- Housing Adopted by City Council H-105 04/11/01 conjunction with hospital Objective H5.2: Address the problems of homeless persons Policy H5.2.1: Provide emergency food, shelter and referrals to homeless and very low income individuals and families in Palmdale. Policy H5.2.2: Maintain adequate sites or land use categories where the development of shelters for the homeless is permitted Policy H5.2.3: Cooperate in regional homeless assistance feasibility studies. Policy H5.2.4: Provide referral services and accept referrals from the new Antelope Valley Access Center for emergency housing placement Program H5.D: South Antelope Valley Emergency Services Program (SAVES) Provide administrative funding to the South Antelope Valley Emergency Services Program which provides services referrals, motel vouchers, emergency food and clothing to homeless and very low-income individuals and families in Palmdale. SAVES refers clients to the Antelope Valley Access Center and accepts referrals from the center when appropriate. Responsible Agency: Administration Department Implementation Actions: Target Date Continue to fund and administer existing program. 2000-2005 Program H5.E: Homeless Persons Facilities Designation Pursuant to Section 94.04 of the Zoning Ordinance, permit the development of emergency shelters for the homeless in areas of the City designated for general commercial uses and public facilities subject to a conditional use permit. Responsible Agency: Planning Department and Building Department Implementation Actions: Target Date Administer an ongoing program 2000-2005 ---PAGE BREAK--- Housing H-106 Adopted by City Council 04/11/01 Program H5.F: Transitional Housing Facilities Pursuant to Section 91.12 of the Zoning Ordinance, permit the development of transitional housing facilities in multiple residential zones, commercial zones and public facilities zone subject to a conditional use permit. Responsible Agency: Planning Department Implementation Actions: Target Date Administer an ongoing program. 2000-2005 Objective H5.3: Provide access to large family ownership units for lower income families through homeownership assistance. See Program H1.E: Mortgage Assistance Program (MAP) and Program H1.F Mobile Home First Time Homebuyers Program Program H5.G: Special Needs Housing Criteria Convene a task force and make recommendations to amend the PAC management training program by identifying the criteria under which landlords might rent to homeless and extremely low-income individuals and families with poor credit records or incomes that are not three times the rent. Responsible Agency: Public Safety Department Implementation Actions Target Date Meet with social service and homeless providers June 2001 Develop criteria and begin a pilot program October 2001 Integrate new criteria into PAC management training March 2002 Objective H5.4: Increase handicapped access to housing Policy H5.4.1: Ensure access for the disabled in residential, commercial and public structures. Policy H5.4.2.: Provide assistance to lower income households in retrofitting their homes for handicapped access. ---PAGE BREAK--- Housing Adopted by City Council H-107 04/11/01 Policy H5.4.3: Educate property managers about the reasonable accommodation provisions of the Americans with Disabilities Act and federal and state fair housing laws through the PAC program and the fair housing services provider. Program H5.H: Multifamily Access Inspection Consider the feasibility of annual or biannual inspections of multifamily housing units for compliance with accessibility provisions in force at the time the buildings were built. Responsible Agency: Department of Building and Safety Implementation Actions: Target Date Conduct a feasibility analysis, make recommendations 2001-2002 submit budget and begin program if approved. Program H5.I: Accessibility Guidelines Enforce compliance with Title 24 requirements for handicap access during building plan check. Responsible Agency: Department of Building and Safety Implementation Actions: Target Date Administer ongoing program 2000-2005 GOAL H6: IMPLEMENT ENERGY AND WATER CONSERVATION MEASURES Objective H6.1: Implement energy and water conservation measures. Policy H6.1.1: Ensure that energy and water conservation measures are included in all new development through the use of an energy conservation checklist. Policy H6.1.2: Inform the public about retrofitting their homes with energy and water conservation measures. Policy H6.1.3: Incorporate water efficient landscaping as a condition of approval for all subdivisions and housing projects ---PAGE BREAK--- Housing H-108 Adopted by City Council 04/11/01 Policy H6.1.4 Enforce all Uniform Building Code and California Administration Code Title 24 conservation measures. Program H6.A: Energy Conservation Checklist Under this program the building department uses an energy conservation checklist to ensure that new residential units include all energy conservation measures required by the Uniform Building Code. Responsible Agency: Building Department Implementation Actions Target Date Administer an ongoing program 2000-2005 Program H6.B: Public Information About Energy and Water Conservation Post information about the Gas Company’s weatherization program and about energy and water conservation retrofit measures on the City’s website. Responsible Agency: Public Information Office and City Webmaster Implementation Actions Target Date Design a section for the website and begin Begin by September 2001 to post information. Program H6.C: Water Conservation Enforce compliance with the City’s Water Efficient Landscape Ordinance to promote the use of water conservation measures in all new development in the City. Responsible Agency: Engineering Division of the Public Works Department Implementation Actions Target Date Administer ongoing program 2000-2005 GOAL H7: ENHANCE THE VITALITY AND SAFETY OF EXISTING RESIDENTIAL NEIGHBORHOODS Objective H7.1: Maintain and improve residential neighborhoods. ---PAGE BREAK--- Housing Adopted by City Council H-109 04/11/01 Policy H7.1.1: Actively enforce compliance with health, safety, building, fire, law enforcement and other regulations in all neighborhoods. Policy H7.1.2: Actively enforce the City’s property maintenance ordinance. Policy H7.1.3: Improve property maintenance and management by training owners and managers. Policy H7.1.4: Develop ways to maintain and improve the appearance of residential neighborhoods. Program H7.A: Comprehensive Neighborhood Improvement Program This is a comprehensive program to improve the quality of selected low and moderate income single family Palmdale neighborhoods by enforcing compliance with building, safety, health, fire, and other regulations and improving the overall appearance of neighborhoods. The program is implemented by a team made up of officials from the City Departments of Planning, Building and Safety, Public Works and the Redevelopment Agency, the Fire Department, the Sheriff’s Department and other agencies. This program sponsors neighborhood clean-ups, installs infrastructure improvements such as sidewalks and streetlights and uses City assistance to make loans or grants for facade improvements such as paint, landscaping and fences. A second component of the program is to assist nonprofit housing advocates such as Habitat for Humanity by acquiring underdeveloped lots within the focus neighborhoods and provide the necessary infrastructure improvements for development of these sites as affordable housing. Responsible Agency: Redevelopment Agency, Housing Division Implementation Actions: Target Date Implement project strategy for focus neighborhood #3 2000-2003 Target and adopt focus neighborhood #4 March 2004 Implement project strategy for focus neighborhood 4 2004-2005 Acquire lots and provide infrastructure for development 2000-2005 of homes by nonprofit housing organizations as conditions and resources permit ---PAGE BREAK--- Housing H-110 Adopted by City Council 04/11/01 Program H7.B: Partners Against Crime (PAC) Partners Against Crime (PAC) coordinates the activities of the Code Enforcement, Housing, Sheriff’s Department, Public Safety and Public Works and Fire Department and Los Angeles County Department of Health Services to address multiple problems of crime and poor property management and maintenance in the City’s multifamily housing. The team meets to share information about problem properties or areas. Participating building owners/managers can obtain a certificate by going through a three-phase program that includes an 8-hour property management training session, starting and maintaining a neighborhood watch program for building tenants and passing a building inspection call the CPTED (crime prevention through environmental design.) Information on affirmative marketing requirements is included in the training workshops. Five daytime and two evening sheriff’s deputies are assigned to the program along with a gang detail deputy and a graffiti investigator. The Youth Crime Task Force is involved as needed. PAC is an important component of the Neighborhood Improvement Program. Responsible Agency: Public Safety Department Implementation Actions Target Date Administer an ongoing program. 2000-2005 Program H7.C Palmdale Beautification Program Assess the feasibility of a citywide neighborhood beautification program. Responsible Agency: Planning Department Implementation Actions: Target Date Draft citywide residential landscape ordinance March 2001 for review by Planning Commission and City Council Identify additional program activities, staffing needs June 2002 and budget and make recommendations to the City Council ---PAGE BREAK--- Housing Adopted by City Council H-111 04/11/01 Program H7.D: Property Maintenance Enforce compliance with Title 8 (Health and Safety) of the Palmdale Municipal Code pertaining to property maintenance in order to enhance and promote the maintenance of real property. Responsible Agency: Code Enforcement Division of the Planning Department Implementation Actions Target Date Administer ongoing program 2000-2005 GOAL H8: PROMOTE NEIGHBORHOOD VERSATILITY BY ENCOURAGING A MIX OF NEW HOUSING ALTERNATIVES TO INCREASE AFFORDABILITY AND PROMOTE HOME OWNERSHIP. Objective 8.1 Use planning and land use techniques to create more affordable new housing. Policy H8.1.1: Encourage voluntary inclusionary housing Policy H8.1.2: Evaluate the feasibility of small lot, reduced set backs or other modifications to reduce costs. Policy H8.1.3: Encourage mixed use housing in designated areas along transportation corridors and other commercial strips. Program H8.A: Inclusionary Housing Program Study the options for a voluntary inclusionary housing program and develop recommendations for consideration by the City Council. In designing the inclusionary proposals, develop a package of incentives that include the City’s current density bonus ordinance, additional incentives, and land use and zoning concessions that will accommodate inclusionary units without any need for developers to seek variances or other discretionary approvals. Responsible Agency: Planning Department Implementation Actions Target Date Review development standards in other cities June 2001 ---PAGE BREAK--- Housing H-112 Adopted by City Council 04/11/01 Develop recommendations to amend the Zoning September 2001 Ordinance that would make home ownership more affordable for lower income households Submit to Planning Commission and December 2001 City Council for review. Program H8.B: New Construction Affordability Program In order to make new single family housing more affordable, study the feasibility of permitting and encouraging the construction of new homes on small lots, duplexes, town homes, wide shallow lots and allowing reduced set-backs and other modifications. Such modifications could be part of an inclusionary housing program. Responsible Agency: Planning Department Implementation Actions Target Date Review development standards in other cities June 2001 Develop recommendations to amend the Zoning September 2001 Ordinance that would make home ownership more affordable for lower income households Submit to Planning Commission and December 2001 City Council for review. Program H8.C: Mixed Use Housing Study the feasibility of permitting mixed use housing and identify contradictions between the building codes for commercial and residential structures that currently prohibit mixed use housing. Consult with area developers on practical guidelines for mixed use development and prepare recommendations for consideration of the Planning Commission and City Council. Responsible Agency: Planning Department Implementation Actions: Target Date Review development standards in other cities. June 2001 Develop recommendations to amend the Zoning September 2001 ---PAGE BREAK--- Housing Adopted by City Council H-113 04/11/01 Ordinance that would make home ownership more affordable for lower income households. Submit to Planning Commission and December 2001 City Council for review. ---PAGE BREAK--- Housing H-114 Adopted by City Council 04/11/01 SECTION 11. QUANTIFIED OBJECTIVES 1998 - 2005 Housing Type Very Low Income (50% or less of median) Low Income (51% to 80%) Moderate Income (81% to 120%) Above Moderate (>120% of median) Total New Construction 28 senior 200 (tax credit) 6 Habitat for Humanity 200 multifamily 116 senior 400 multifamily 2,500 single family 400 multifamily 3,900 single family 7,750* Rehabilitation With affordability restrictions Mobile Home Rehabilitation Other rehabilitation loans Neighborhood Improvement Grants 100 75 300 20 100 30 300 20 200 105 600 Downpayment Assist. for new homes 100 loans, 40 to purchasers of newly constructed homes 100 loans, 40 to buyers of newly constructed home First-time homebuyer–new mobile homes (HOME funds) 20 100 120 Conservation Emergency Grant Program 165 165 1,094 1,166 2,900 3,900 9,060 * Palmdale does not believe that the process for obtaining permits imposes any constraint on the new construction of housing. However, the Palmdale residential construction industry was severely affected by the recession of the early and mid 1990s and is recovering slowly. With only 1,184 single family and 200 multifamily homes completed from 1998-2000, production would have to nearly quadruple to 1,700 units per year to meet the RHNA numbers by 2005. While the City believes that demand for Palmdale’s moderate priced units will continue to be strong, production is unlikely to ramp up fast enough to produce 9,878 units by 2005. ---PAGE BREAK--- Housing H-115 Adopted by City Council 04/11/01 SECTION 12. FINANCIAL RESOURCES 2000 - 2005 Income Group CDBG HOME Redevelopment Housing Set-Aside Number of Units New Units or Rehab Units with Affordability Restrictions Program SAVES Very low <50% $ 713,250 75,000 Emergency services and Motel Vouchers for 280 families/year Homeless Services New Construction Low Low//VeryLow Habitat for Humanity 6 6 New Homes, Sweat Equity 200 Tax Credit Units 144 Senior Units Rehabilitation- Neighborhood Improvement Program–No Affordability Restrictions Low/Mod 51% -120% $ 3,500,000 600 units 0 Single Family Homebuyers Downpayment Assistance Low/Mod 51%-120% $ 1,000,000 100 units 40 new homes 60 resale home New Mobile Home First Time Homebuyers Low 51%- 80% $ 2,500,000 $ 1,250,000 150 units 150 mobile homes Mobile Home Rehabilitation $6,000 each Low/Mod 51%-120% $ 1,200,000 200 0 ---PAGE BREAK--- Housing Adopted by City Council H-116 04/11/01 Income Group CDBG HOME Redevelopment Housing Set-Aside Number of Units New Units or Rehab Units with Affordability Restrictions Program Mobile Home Relocation Grant Low 51%-80% $ 200,000 67 households 0 Emergency Grant Program Very Low 50% or less $ 500,000 150 units 0 Housing Rehabilitation Home Owners–$10,00- $20,000 loans Low/Mod 50%-120% $ 2,250,000 125 units 0 Land Acquisition Senior Housing Courson Corridor Very low 50% or less $ 1,000,850 N/A land bank for 200 affordable senior units to be constructed 2006- 2010 Total $ 713,250 $ 2,575,000 $ 10,900,850 1.392 544 units ---PAGE BREAK--- Housing H-117 Adopted by City Council 04/11/01 SECTION 13. SOURCES Sharon McCaughey, Senior Planner, City of Palmdale Planning Department Michael Morrisey, Senior Code Enforcement Officer, City of Palmdale City of Palmdale Consolidated Plan, 2000-2005 City of Palmdale 1996 Housing Element City of Palmdale Redevelopment Implementation Plan City of Palmdale Analysis of Impediments to Fair Housing Choice, August 2000 Richard Otis, Housing Preservation, HUD, Los Angeles Office RealFacts, Novato, CA First American Real Estate Solutions Irene Lamb, Housing Authority of the County of Los Angeles Don Swift, Housing Authority of the County of Los Angeles Larry Gross, Executive Director, Coalition for Economic Survival Gary Squier, Squier Properties Argen, Am Cal Properties Bill Baker and Dave Eisenbach, Eugene Berger Management Corporation Judy Cooperberg, President, Antelope Valley Homeless Coalition and Executive Director, Antelope Valley Mental Health Association Noty Baldwin, Research Section, Department of Public Social Services Larry Grooms, Greater Antelope Valley Economic Alliance Alfred Gobar Associates, 1997 Antelope Valley Labor Base Analysis Greater Antelope Valley Economic Alliance, Industry Round Table Report, April 2000 Social Security Administration Region IX, OASDI Beneficiaries by Zip Code Area, December, 1998 California Housing Partnership Corp., Preserving California’s Housing Stock, December 1999