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HomeMy WebLinkAbout12/18/2002 - STAFF REPORTS (7) DATE: DECEMBER 18, 2002 TO: COMMUNITY REDEVELOPMENT AGENCY AND CITY COUNCIL FROM: DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT SUBMISSION OF DRAFT HOUSING ELEMENT TO CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR REVIEW AND APPROVAL RECOMMENDATION: It is recommended that the City Council approve the submission of the Draft Housing Element to the California Department of Housing and Community Development(HCD)for review and approval BACKGROUND: Section 65300 et. seq. of the California Government Code requires that "each planning agency shall prepare and the legislative body of each county and city shall adopt a comprehensive, long-term general plan for the physical development of the county or city, and of any land outside its boundaries which in the planning agency's judgment bears relation to its planning. In July 2001, Staff presented to the City Council a nearly-completed 'draft' of the Housing Element Update. The drafting of the document included significant public participation through the Housing Strategy Committee, composed of a broad segment of the community's housing interests(i.e. Special Needs Housing Advocates, Board of Realtors, Neighborhood Groups,Apartment Owners, Fair Housing and the Tribe). At that time, Staff reported that 99% of the Housing Element was done, except for clarification sought from HCD on how endangered species, the National Monument boundaries, and Indian land issues would affect the City's ability to comply with its Regional Housing Needs Assessment requirements. In addition, Riverside Countyjoined a number of other Inland Empire jurisdictions in challenging HCD and the Southern California Association of Governments' (SCAG's) "fair share" allocation of units. Had the County suit been successful, SCAG, the regional agency in charge of the "fair share" distribution, would have been forced to reallocate the County's units to the other cities in the county, including Palm Springs, as part of a"zero sum"mandate imposed by HCD. Estimates of the impact to Palm Springs would have increased the City's allocation from the current 1,502 units required between 1998-2005 to over 2,400, and would have required a substantial redrafting of the City's Housing Element, anyway. All of those issues were resolved earlier this year, and in September 2002 the Council directed staff to finalize the Housing Element and submit it to HCD by the end of this year. The Planning Center, the contractor on the project, has completed the Draft Housing Element and is prepared to submit it to HCD this month. The City did receive a reminder from HCD in May of the Statutory deadline, which confirmed their interest in seeing the Housing Element Update adopted in a timely manner. The City Council will eventually adopt the Housing Element by resolution once it has been approved by the Planning Commission at a public meeting. The Housing Element is the only element of the City's General Plan that needs to be approved by the State of California; HCD is, however, willing to review and approve draft elements priorto adoption by the communities. Therefore, when the item returns to the Planning Commission and City Council (in February and March) it will be in an approved or approvable form from HCD. Should either the Planning Commission or the City Council make any significant changes to the document after HCD has approved it, it would need to go back to Sacramento for approval of the changes or amendments. Therefore, staff intended for both the Planning Commission and Council to review the document prior to submitting it to HCD. Planning Commission reviewed the document at its December 4, 2002 Study Session; while the commissioners asked questions, they did not offer any significant changes to the document at that time. This review offers the Council to review and comment on the near-final draft of the Housing Element before the City submits it to the State. This minute order does not give final approval to the Housing Element; it only authorizes staff to submit the Draft Housing Element (with whatever changes and edits may arise in the meeting) to HCD for review and approval, with the understanding that final approval of the Housing Element will be required by Planning Commission and Council in several months. copy of t e Draft Housing E#Kment is included for Council's review. HN S. AYMON Direc or of Community& Economic Development A P P R 0 V E Executive Director ATTACHMENTS: 1. Minute Order 2. Draft Housing Element City of Palm Springs HOUSING ELEMENT UPDA TE DMI-T REPORT • Prepared For. THE CITY OF PALM SPRINGS 3200 E.Tahqufiz Canyon Way Palm Springs,CA 92262 Contact: Doug Evans (760)323-8245 Prepared By: THE PLANNING CENTER 1580 Metro Drive Costa Mesa, CA 92626 Contact: Melani Smith NOVEMBER 2002 City of Palm Springs HOUSING ELEMENT UPDATE TABLE OF CONTENTS SECTION PAGE I. INTRODUCTION........................................................................................................................I A. PURPOSE...........................................................................................................................1 B. CITIZEN PARTICIPATION...................................................................................................I C. CONSISTENCY WITH STATE PLANNING LAW.................................................................1 D. GENERAL PLAN CONSISTENCY.......................................................................................1 E. HOUSING ELEMENT ORGANIZATION ..............................................................................2 II. COMMUNITY PROFILE............................................................................................................5 A. POPULATION TRENDS AND CHARACTERISTICS_..........................................................5 1. Age Composition...................................................................................................6 2. Race and Ethnicity.................................................................................................7 B. EMPLOYMENTTRENDS.....................................................................................................8 C. HOUSEHOLD CHARACTERISTICS..................................................................................10 1. Household Formation and Composition.............................................................10 2. Household Type...................................................................................................11 3. Household Size....................................................................................................12 4. Household Income...............................................................................................12 D. HOUSING INVENTORY AND MARKET CONDITIONS.......................................I.............15 1. Housing Stock Profile..........................................................................................15 • 2. Tenure..................................................................................................................17 3. Vacancy Rates.....................................................................................................17 4. Age of Housing Stock..........................................................................................19 5. Housing Conditions.............................................................................................20 a. Housing Costs and Rents.............................................................................21 b. Existing and New Home Price Trends..........................................................21 c. Rental Prices.................................................................................................23 d. Affordability Gap Analysis ............................................................................25 e. Rental Analysis.............................................................................................26 f. Ownership Analysis.......................................................................................27 Ill. HOUSING NEEDS...................................................................................................................29 A. EXISTING NEEDS.............................................................................................................29 1. Overcrowding.......................................................................................................29 2. Overpayment.......................................................................................................30 3. Special Needs Groups.........................................................................................31 a. Elderly Persons.............................................................................................31 b. Large Families..............................................................................................33 c. Female-headed Households........................................................................33 d. Disabled Persons.........................................................................................34 e. Homeless Population ...................................................................................35 f. Farmworkers..................................................................................................36 g. Domestic Violence (Battered Spouses) .......................................................37 h. HIV/AIDS.......................................................................................................37 B. GROWTH NEEDS.............................................................................................................37 1. Overview of the SCAG Regional Housing Needs Assessment...........................38 2. The 1998-2005 Palm Springs Fair Share Estimate..............................................38 The Planning Center Page i November 2002 AgCPS-OIXGWrh H..G,g Eh,mm u-11-02A, DRAFT • Table of Contents IV. HOUSING CONSTRAINTS AND RESOURCES.....................................................................41 A. CONSTRAINTS.................................................................................................................41 1. Governmental Constraints...................................................................................41 a. Land Use Controls........................................................................................41 b. Density Bonus..............................................................................................53 c. Accessory Units............................................................................................54 d. Building Codes and Enforcement................................................................54 e. Development Fees........................................................................................55 f. Local Processing and Permit Procedures.....................................................56 g. Off-Site Improvements..................................................................................57 2. Non-Governmental Constraints...........................................................................57 a. Environmental Constraints...........................................................................57 b. Infrastructure Constraints.............................................................................58 c. Land Prices...................................................................................................59 d. Construction Costs.......................................................................................60 e. Financing......................................................................................................61 B. RESOURCES.....................................................................................................I..............62 1. Availability of Sites for Housing...........................................................................62 a. Vacant Land..................................................................................................63 b. Specific Plans.............................................................................:.................66 c. Underutilized Land........................................................................................66 d. Residential Development on Non-Residential Land.....................................67 • e. Accessory Living Units.................................................................................68 f. Annexation.....................................................................................................68 2. Preservation of Assisted Units at Risk of Conversion..........................................68 a. Inventory of Assisted Affordable Units..........................................................69 b. Inventory of At-Risk Units.............................................................................73 c. Cost of Preservation Versus Replacement...................................................74 d. Resources for Preservation..........................................................................79 e. Public Financing/Subsidies:......................................... ...............................79 f. Non-Profit Entities..........................................................................................81 C. PROGRAM EFFORTS TO PRESERVE AT-RISK UNITS....................................................81 D. QUANTIFIED OBJECTIVES.................................................................... .........................81 V. REVIEW OF HOUSING ELEMENT PERFORMANCE TO DATE..............................................83 A. PROGRESS IN IMPLEMENTING THE 1989 GOALS AND OBJECTIVES.........................83 VI, GOALS, POLICIES,PROGRAMS,AND QUANTIFIED OBJECTIVES....................................93 A. GOALS AND POLICIES.....................................................................................................93 B. IMPLEMENTATION TOOLS............................................................................................103 C. HOUSING PLAN SUMMARY.......................................................................I........I......1-108 Vll. QUANTIFIED OBJECTIVES..................................................................................................12, A. NEW CONSTRUCTION...................................................................................................121 B. CONSERVATION OF EXISTING"AT RISK" UNITS.........................................................122 C. REHABILITATION............................................................................................................122 D. FINANCIAL ASSISTANCE PROGRAMS..........................................................................123 • Page ii Housing Element Update far the City of Palm Springs DRAFT P.ICPS-01 AG1Dra/r xoae,Ete,,,""nal-o2,e/e November 2002 City of Palm Springs HOUSING ELEMENT UPDATE LIST OF TABLES TABLE PAGE Table 1 State Housing Element Requirements.............................................................................................2 Table 2 Population Growth 1980-1999.........................................................................................................5 Table 3 Age Distribution 1980-1999..............................................................................................................7 Table 4 Racial And Ethnic Composition 1980-1990.....................................................................................8 Table 5 Jobs Held By Palm Springs Residents By Sector...........................................................................9 Table6 Major Employers 1999................................................................................................................... 10 Table 7 Total Households 1990-1999.........................................................................................................11 Table8 Household Type 1990....................................................................................................................11 Table 9 Household Size By Tenure 1990 ................................................................................................... 12 Table 10 Household Income By Tenure 1990............................................................................................13 Table 11 Estimated Household Income Distribution City of Palm Springs and Riverside County 1999....13 Table 12 Households by Income Category 1999.......................................................................................14 Table 13 Households Below Poverty Level 1990 ....................................................................................... 15 Table 14 Composition of Housing Stock by Unit Type 1990— 1999.......................................................... 16 Table 15 Occupied Housing Units by Tenure 1990....................................................................................17 Table 16 Housing Vacancy By Unit Size 1990............................................................................................18 Table 17 Age Of Housing Stock ................................................................................................................. 19 Table 18 Housing Values 1990 And 1999...................................................................................................21 Table 19 New Housing Prices 1999..........................................................................................:.................22 Table 20 Representative Resale Housing Prices 2000 City Of Palm Springs............................................22 • Table 21 Rents By Number Of Bedrooms 1990.........................................................................................24 Table 22 Rental Prices Of Market Units 1999.............................................................................................25 Table 23 2000 Maximum Rent And Purchase Price By Income Category City Of Palm Springs...............26 Table 24 Affordable Rent And Purchase Price By Annual Income Category 1999....................................27 Table 25 Households With Overcrowding City Of Palm Springs ...............................................................30 Table 26 Households With Overpayment By Income Category City Of Palm Springs..............................31 Table 27 Elderly Mobility And/Or Self-Care Limitations 1990.....................................................................32 Table 28 Large Households By Tenure 1990.............................................................................................33 Table 29 Female Heads Of Households 1990............................................................................................34 Table 30 Disabled Residents 1990 City Of Palm Springs...........................................................................35 Table 31 Summary Of Existing Housing Needs Palm Springs...................................................................37 Table 32 Palm Springs Fair Share Housing Needs 1998—20051..............................................................39 Table 33 Palm Springs General Plan Residential Land Use Categories City Of Palm Springs .................42 Table 34 Summary Of Zoning Residential Regulations..............................................................................49 Table 35 Residential Parking Requirements...............................................................................................52 Table 36 Average Processing Times For 1999 Projects Involving Discretionary Review...........................56 Table 37 Representative Development Costs.............................................................................................61 Table 38A Summary of Residential Build-Out Potential .............................................................................65 Table 38B Residential Build-Out Potential by Income Category...............................................................66 Table 39 Inventory Of Assisted Units..........................................................................................................69 Table 40 Summary Of At-Risk Units............................................................................................................73 Table 41 Fair Market Rents For Existing Housing: Riverside-San Bernardino Msa..................................77 Table 42 Estimated Monthly Subsidy To Very Low Income Residents......................................................77 Table 43 Replacement Cost By Type Of Unit.............................................................................................78 Table 44 Effectiveness Of Past Element.....................................................................................................85 • Table 45 Progress Towards Objectives Housing Units constructed July 1989—January 1998................91 Table 46 Resources Available for Housing Activities City of Palm Springs..............................................104 Table 47 Housing Plan Summary.. ................................................................... ...................................... 109 The Planning Center Page in Nommber2002 riCes-OLOC�D,«ftHwa,rs Ekme„t1t.ir-0z.dat DRAFT Table of Contents Table 48 New Construction Housing Objectives 1998-2005.................................................................... 122 Table 49 Preservation/Rehabilitation Objectives 1998-2005..................................................................123 Table 50 Financial Assistance Objectives 1998- 2005............................................................................. 123 Table 51 City of Palm Springs Quantified Objectives Summary 1998-2005.......................................... 123 • Page iv Housing Elenzent Update for the City of Palm Springs DRAFT r iCrs-oi 060,el H,.,, 1 r-n-02 d,, November 2002 City of Palm Springs HOUSING ELEMENT UPDA TE 1. INTR'OQUOTION A. PURPOSE The Housing Element of the General Plan is intended to guide residential development and preservation in a way that is consistent with the overall economic and social values of the community. The residential character of a city is largely dependent upon the dwelling unit type, quality, location, and such factors as maintenance and neighborhood amenities. B. CITIZEN PARTICIPATION State law requires that local governments make diligent efforts to solicit public participation from all economic segments of the community in the development of the Housing Element. Prior to adoption of the element, legally noticed public hearings were conducted by the Planning Commission and City Council on Copies of the Draft Housing Element were also reviewed by the Department of Housing and Community Development as required by state law. . C. CONSISTENCY WITH STATE PLANNING LAW The Housing Element is one of the seven General Plan elements required by the State of California, as articulated in Section 65580 to 65589.8 of the Government Code. State Law requires that the Element consist of: An identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of Housing. State Law also requires that a community evaluate its Housing Element every five years to determine its effectiveness in achieving City and State housing goals and objectives and to adopt an updated Element that reflects the results of this evaluation. The statutory updates in the Southern California Association of Governments (SCAG) region are due to be completed by December 31, 2000,with a seven and one-half year planning period from January 1998 through July 2005. This document represents a comprehensive update of the City of Palm Springs' Housing Element to bring it into compliance with State Housing Law and to meet the 2000 updated requirement. Also included in this section is an assessment of the community's allocated portion of the regional housing needs of all income groups as determined by the Southern California Association of Governments (SCAG) and the Coachella Valley Association of Governments (CVAG). D. GENERAL PLAN CONSISTENCY The Housing Element of the General Plan is only one component of a City's overall planning program. The California Government Code requires that General Plans contain an integrated, consistent set of goals and policies. As such, the Housing Element is affected by development policies contained in the Land Use Element, which establishes the location, type, density, and allocation of land uses throughout the City. The Circulation Element establishes policies for providing essential streets and roadways to all The Planning Center Page 1 November 2002 v�Cvs-anogo.nf,H,,,,,,,y Ek,,,,,1 1/-11-02 A, DRAFT I. Introduction housing that is developed. The policies contained in other elements of the General Plan impact the quality of life that the citizens expect. As segments of the General Plan are amended in the future, the Elements of the General Plan, including the Housing Element will need to be reviewed for the purposes of maintaining internal consistency. E. HOUSING ELEMENT ORGANIZATION Section 65583 of the Government Code specifies that Ithe Housing Element include the following components: Population and employment trends Housing stock characteristics Inventory of land suitable for residential development Units at risk of conversion to market rate Governmental and non-governmental constraints on affordable housing Existing, future, and special housing needs ofthe population Opportunities for energy conservation in relation to residential development Assessment of the 1993 Housing Element. Also included in this section is an assessment of the community's allocated portion of the regional housing needs of all income groups as determined by the Southern California Association of • Governments (SCAG) and the Coachella Valley Council of Governments (CVAG). TABLE 1 STATE HOUSING ELEMENT REQUIREMENTS Required Housing Element Component 1. Housing Needs Assessment a. Analysis of population trends in City of Palm Springs in relation to countywide trends b. Analysis of employment trends in City of Palm Springs in relation to regional trends c. Projection and quantification of the City of Palm Springs existing and projected housing needsJor all income groups d. Analysis and documentation of City of Palm Springs' housing characteristics including the following: 1) level of housing cost compared to ability to pay; II) overcrowding; 111) housing stock condition • Page 2 Housing Element Update for the City of Palm Springs DRAFT P CPS-01.ocO,1 Hm,,,,,x El""',11-11-01 e" November 2002 City of Palm Springs HOUSING ELEMENT UPDA TE TABLE Y STATE HOUSING ELEMENT REQUIREMENTS Required Housing Element Component e. An inventory of land suitable for residential development including vacant sites and having redevelopment potential and an analysis of the relationship of zoning, public facilities and services to these sites f. Analysis of existing and potential governmental constraints upon the maintenance, improvement, or development of housing for all income levels g. Analysis of existing and potential non-governmental and market constraints upon maintenance, improvement, or development of housing for all income levels h. Analysis of special housing need: handicapped, elderly, large families, and Single-parent-households i. Analysis concerning the needs of homeless individuals and families in the City of Palm Springs j. Analysis of opportunities for energy conservation with respect to residential development 2. Goals and Policies a. Identification of Palm Springs' goals, quantified objectives and policies relative to maintenance, improvement, and development of housing 3. Implementation Program An implementation program should do the following: a. Identify adequate sites which will be made available through appropriate action with required public services and facilities for a variety of housing types for all income levels b. Program to assist in the development of adequate housing to meet the needs of low-and moderate-income households c. Identify and, when appropriate and possible, remove governmental constraints to the maintenance, improvement, and development of housing in the City of Palm Springs. d. Conserve and improve the condition of the existing and affordable housing stock in City of Palm Springs e. Promote housing opportunities for all persons • The Planning Center Page 3 November 2002 e�Crs-ai.000..Not„r„,e/,...,r.n-n-oz dm, DRAFT I. Introduction This page intentionally left blank. • • Page4 Housing Element Update for the City of Palm Springs DRAFT r�Crs-ot oc�D.l Hvumy EA. ,11-11-0z d, November 2002 City of Palm Springs HOUSING ELEMENT UPDATE It. COMMUM17Y PROFILE A. POPULATION TRENDS AND CHARACTERISTICS The purpose of this section is to illustrate Palm Springs' current conditions in terms of its demographics and existing housing stock. Accordingly,the section entails discussions on Palm Springs' population and housing trends by looking at the most current data, at the time the document is prepared,and earlier data to make comparisons between time periods to reflect on the current state of the City and its future direction. Riverside County ranked as the fourth fastest growing county in California in 1999. According the U.S. Census data, Riverside County experienced the most rapid growth between 1980 and 1990,whereby the total population increased from 663,199 in 1980 to 1,170,413 in 1990,representing about 77%growth. Between 1990 and 1999,the County's population reached 1,473,300, representing nearly 26%growth. Similarly,the City of Palm Springs experienced much of its population growth between the years 1980- 1990. During this period,the City's population grew from 31,220 in 1980 to 40,144 in 1990, representing a 25% increase. Between the years 1990-1999,the City's population increased by 2,161 persons to 42,305 persons, representing a change of 5.4%. Population projections from the National Decision Systems show that the Palm Springs'slow growth rate will continue beyond 2000 with the population reaching 42,616 by the year 2004, representing less than 1%growth annually over the next four years • (0.4%). Table 2 summarizes the City's population changes from 1980-1999. Chart 1 is the City's population trends. TABLE 2 POPULATION GROWTH 1980-1999 1980-90 Growth 1990-99 Growth Jurisdiction 1980 1 1990 1 1999 P Number Percent Number Percent Palm Springs 32.366 40,181 42,305 7,815 24.1% 2,124 5.4% Riverside County 663,199 1,170,413 1,473,300 507,214 76.5% 302,887 25.9% State of California 23,782,000 29,976,000 33,773,000 6,194,000 26.0% 3,797,000 12.7% U.S. Census Bureau. California Department of Finance, Population Estimates,January 1, 1999. The Planning Center Page 5 November2002 PgLPS-01.0MDrnfiXovnngEl..... ll-11-02.40o DRAFT II. Community Profile 7Chart 1-.'Historical and Projected_Populafion and Households City of,Pahn Springs �t y fir. k't 1989 to 2894 - 1_ 42.616 Pv.Q1t�Q : W"TT-0366_ 40,181�FE, r.: o: .1999 J Cstnn-: 004 - z - 2MAP Year,. Source:David Paul Rosen and Associates,Affordable Housing Market Analysis,2000 1. Age Composition Age distribution is an important factor in determining housing demands. Traditional assumptions are • that the young adult population (19 to 34 years old)tends to favor, or can only afford apartments, low to moderate cost condominiums, and smaller single-family units. The adult population (35 to 65 years old) provides the major market for moderate to high-end apartments, condominiums, and single-family homes. This age group tends to have higher incomes and larger household sizes. The senior population (65 years and older) tends to generate demand for low to moderate cost apartments, condominiums, group quarters, and manufactured homes. Some seniors may also live in older, larger houses that once housed the entire family. Based on the 1990 Census data, 75.7% of the City's population was of ages 25 and older, of which nearly 26% of the total population was of ages 65 andlolder. The under 18 and 18-24 age groups represented 16.4% and 7.9%, respectively. Comparatively, 1999 estimates from California Department of Finance (DOF) show the age distribution remained similar in 1999. The 25 and older age group comprised 76.8% of the population, representing a 1.1% increase, Similarly, the under 18-age group increased to 7,667 in 1999, representing a 1.7% increase. The 18-24 age group declined from 3,182 in 1990 to 2,158 in 1999, representing a decrease of 2.8%of the overall total. The actual decrease within this group was 33%. Page 6 Housing Element Update for the City, of Palm Springs DRAFT P�CP&01 OG D..,e H.,,,x em,,,a,,,11-11-02 A, November 2002 City of Palm Springs HOUSING ELEMENT UPDA TE TABLE 3 AGE DISTRIBUTION 1980-1999 1990, 19992 of %of 1980:1990 Age Group/Year Number Population Number Population % Change Under18 6,603 16.4% 7,657 18.1°% 16.0% 18-24 3,182 7.9% 2,158 5.1% -32.2% 25-44 11,091 27.66/ 11,507 27.2% 3.8% 45-64 8,981 22.4% 9,942 23.5% 10.7% 65 and older 10,324 25.7% 11,041 26.1% 6.9% Total 40,181 100.0% 42,305 100.0% N/A 'Source: U.S.Census,STA 3. CA Department of Finance 2. Race and Ethnicity The U.S. Census provides statistics regarding the race and ethnicity of a city's population. Although the number of minority residents in Palm Springs increased between 1990 and 1999, the City is primarily • comprised of persons classified as "White". Table 4 highlights the ethnic distribution of the population for 1990 and 1999. It should be noted that persons of Hispanic Origin are included within the various ethnic categories, and may be of any race. In 1990, 7,504 persons were of Hispanic Origin, which was 19%of the population. In 1990, about 16.8% of the City's population was non-White, increasing to nearly one-quarter by 1999. During the 1990-1999 period, each of these ethnic groups increased their proportional share of the population, while the Caucasian group experienced a slight decline. The greatest increase occurred in the "Other" category, which presumably includes persons of Hispanic Origin. Among all ethnic groups, the population of"Other" residents increased most significantly, from 3,613 persons in 1990 to 5,457 in 1999, bringing the proportion of "Other" to 12.9% of total City population. Hispanic residents experienced the actual greatest increase in population with a 9% increase over the decade of 4,459 persons, from 19% of the total population in 1990 to 28.3% of the total population in 1999. • The Planning Center Page 7 November 2002 P iCrs-u i ocID,ap s°,,,,j,a Eleme i 11-1 r-o2 cm� DRAFT II. Community Profile TABLE 4 RACIAL AND ETHNIC COMPOSITION 1980-1990 1990 1999 1990-1999 Racial/Ethnic Group Number Percent Number Percent %Change White 33,411 83.2% 32,921 77.8% -1.5% Black 1,814 4.5% 2,064 4.9% 13.8% Asian or Pacific Islander 1,343 13.3% 1,861 4.4% 38.6% Other* 1 3,613 9.00% 5,457 12.90/, 51.0% Hispanic Origin 7,504 19.0% 11,963 28.3% 59A% Total 1 40,1811 100.0%1 42,3031 100.0% N/A *The categories of American Indian,Eskimo,Aleut and Other were combined. Source: US Census Data. These Race and Ethnicity statistics are important because they demonstrate that Palm Springs is becoming a more ethnically diverse, heterogeneous City. • B. EMPLOYMENT TRENDS According to data provided the California Employment Development Department (EDD), the City had a labor force of 20,670 persons in 1990. Of this figure, 19,550 were employed and 1,120 were unemployed, representing 5.4% unemployment rate. While this shows a rather high percentage of unemployment rate, Riverside County as a whole had'an unemployment rate of 7%. Moreover, the City's unemployment rate was among the lowest in the County. The 1990 Census reports a slightly lower number of employed persons, at 18,636. Year 2000 EDD figures show that the County's unemployment rate declined to 5%. Similarly, the City's unemployment rate fell to 3.9% in 2000, representing a decrease in the unemployment rate of 1.5% points, or 27% numerically. As of January 2000, the City's labor force consisted of 26,520 persons, of which 1,020 persons were unemployed, which represents a growth in the labor force of 5,850 persons, or 28% during the 1990-2000 period. I • Page 8 Hoisting Clement Update for the City of Palm Springs DRAFT P PCPs-o r.oCio-fl H<.,,x C(°,a�=,,,n-u-02 n, November 2002 City of Palm Springs HOUSING ELEMENT UPDATE TABLE 5 JOBS HELD BY PALM SPRINGS RESIDENTS BY SECTOR 1990 1999 Job Sector Number I Percent Number Percent Agriculture/Mining 477 3% 542 3% Construction 1,522 8% 1,686 8% Manufacturing 853 5% 958 5% Transportation 747 4% 785 4% Communications/other Public Facilities 486 3% 542 3% Wholesale Trade 310 2% 542 3% Retail Trade 4,073 22% 4,352 22% Finance,Insurance,&Real Estate 1,622 9% 1,628 8% Services 8,134 44% 8,518 43% Public Administration 412 2% 424 2% Total Employed Persons(16 years and over) 13,636 100% 19,977 100% Source: 1990 U.S.Census,City of Palm Springs Economic Development Dept.1999 • The 1990 census indicates that the largest proportion of jobs in the City were in the services sector supporting the tourism character of the City, followed by retail trade. In 1999,these job sectors again represent the highest proportion of jobs in the City. Looking at employment characteristics by occupation in 1999, estimated by National Decision Systems which is representative of a different reporting measure than the percentage of jobs held by City residents by sector presented in Table 5, it is found that the most prevalent occupation is in the Service Industry, at 19.8%, followed by Sales at 15.50/., Executive and Managerial at 14.4%, Professional Specialty at 13.0% and Administrative Support at 13.2%. Due to the difference in reporting categories, direct comparisons cannot be made. However, statistics provided by ECAC Economic and Political Analysis for the time period of 1991 to 1996 indicate extreme growth in the services sector, manufacturing, and distribution and transportation. However, this data reflects firms located in the City, not the occupations of the residents. The following Table 6 lists the major employers in the City with workforces exceeding 50 employees. • The Planning Center Page 9 November 2002 P iCPs-0 r 0eio,f,H,,,,N e%.n°°,1 i-i 1-02 e,, DRAFT II. Community Profile i TABLE 6 MAJOR EMPLOYERS 1999 Company Number of Employees Hotels approximately 195 2,500 Palm Springs Unified School District 1,400* Palm Springs International Airport 1,200 Desert Regional Medical Center 1,100 Desert Sun Publishing 350 Thermo Electron 350 ALMA 63 Palm Springs Baking Company 60 *Note;Jobs held with Palm Springs Unified Schools District are not all located in the City of Palm Springs.The school district includes the cities of Cathedral City, Rancho Mirage,Thousand Palms and Desert Hot Springs. Source: City of Palm Springs FY 2000 Consolidated Plan C. HOUSEHOLD CHARACTERISTICS Before current housing problems can be understood and future needs anticipated, housing occupancy characteristics need to be identified in the City. The following is an analysis of household size, • household growth,tenure, and vacancy trends. By definition, a"household" consists of all the people occupying a dwelling unit, whether or not they are related. A single person living in an apartment is a household,just as a couple with two children living in,the same dwelling unit is considered a household. 1. Household Formation and Composition Table 7 compares the total year round occupied households in 1990 and 1999 for California, Riverside County, and City of Palm Springs. The table shows that while the total number of households for California and Riverside County increased 8.1% and 17.6%, respectively, the number of households in the City of Palm Springs increased only 2.6%. Palm Springs' relatively slow growth is attributed to the fact that the recession of the 1990's seriously impacted development in the City, as well as the fact that Palm Springs is a community with tourism as an underlying character,which is reflected in a high proportion of seasonal households. • Page 10 Housing Element Update for the City of Palm Springs DRAFT P PCPs-m ocW.</rh..,,X et.,,,,��.I 1-1 r-o2 4 November 2002 City of Palm Springs HOUSING ELEMENT UPDATE TABLE 7 TOTAL HOUSEHOLDS 1990-1999 %Increase Area 1990 1999 1990-1999 California 10,381,206 11,225,363 8.17 Riverside County 402,067 473,008 17.6% Palm Springs 18,7831 19.2791 2.6% Source: U.S.Bureau of Census 1990 for the City,County and State;Department of Finance Population Estimates,1/1/99. 2. Household Type Table 8 shows the household types for the City of Palm Springs according to the 1990 Census. The data illustrates that non-family households occupy a plurality of households at 45%, representing single persons who may be either living alone or sharing a home/apartment. The data indicates that married family households represent 42%of the total households. It is interesting to note that the majority of married couple families do not have children under the age of 18, Of the total number of married couple families in the City, 72%do not have children under the age of 18 residing with them. Of the remaining • 12%of households,the overwhelming majority are female households with no husband present. TABLE 8 HOUSEHOLD TYPE 1990 Male householder, Female householder, Married-couple family no wile present no husband present Non-family Total Want W/out Wont Not W/children children W/children children W/children children Living Living All under 18 yrs. under 18 yrs. under 18 yrs. under 18 yrs, under 18 yrs. under 18 yrs. Alone Alone Households 2,217 5,725 215 458 740 895 1,720 6,811 18,783 12% 30% 1% 2% 4% . 5% 9% 36% 100% Source: 1990 U.S.Census. Universe:Total households Table 8 illustrates the changing nature of housing needs in the City. Less than 12%of all households in 1990 were"traditional"families-a married couple with children. The data reflects the type of households formulated as a result of the high percentage of elderly and retired persons residing in the City-married couples with no children, non-family households,and female-headed households with no children.The City has also experienced substantial growth in its gay populations, who tend to have smaller (one or two-person) households. According to 1999 estimates by National Decision Systems, married couple families represent 41.2%of all households,followed by single female households at 21.4%of the total households, and single male • households at 14.6% of the households. Single female or male households are considered "non-family". Female-headed households constitute 7.7%of all households, and male-headed households constitute The Planning Center Page 11 November2002 PnCPs-m.061oa/rxonr gEroneor11a1-02.ea DRAFT II. Community Profile 3.8%of all households. The remainder of households(11.3%) is considered non-family,for a total of 47.3%of the households in the City considered as"non-family". It is estimated that 3,543 households include children,which is 18%of total households—a slight increase over 1990. Of these,the majority is found in married couple families at 65.2%of all households with children,followed by female-headed households at 23.9%of all households with children. 3. Household Size According to the 1990 Census,the average household size for all households is 2.13 persons per household.The majority of homeowners consist of households with two or more persons, while those who rent are comprised of proportionately more single person households than any other size group. Overall, however, over 76% of all households in the City are comprised of single and two person households. Again,the smaller household size among both renters and owners reflects the resort and retirement character of the City,Table 9 breaks down the number of households by size and then shows the percentage of those households occupied by renters and owners. TABLE 9 HOUSEHOLD SIZE BY TENURE 1990 Renter Owner Total Households Number Percent 11 Number I Percent Number I Percent • 1 Person 3,237 42.3% 3,615 33.0% 6,852 36.8% 2 Person 2,409 31.5% 4,901 44.7% 7,310 39.3% 3-4 Person 1,412 18.4%1 1,8721 17.1%j 3,284 17.6% 5+ Person 601 7.8%j 5751 5.2%j 1,176 6.3% Total 1 7,6591 100.0%1 10,9631 100.0%1 18,622 100.O% Average Household Size 2.13 Source: U.S.Bureau of Census 1990. Universe:Occupied Housing Units According to 1999 Department of Finance estimates, the City is comprised of 19,279 households; 58%of the households are estimated to be owner-occupants!and 41%of the households are estimated to be renters. Small households predominate, due in a large part,to the high percentage of elderly and gay households located in the City. The average person per household in 1999 is 2.16 persons,which represents a very small increase in household size from 1990. 4. Household Income The Department of Housing and Urban Development;develops annual median income estimates for the purpose of determining program eligibility. According to HUD,the 2000 median income for the Riverside County area was$47,400. As shown in Table 10,the!median family income in the City of Palm Springs in 1990 was$27,538. Page 12 Housing Element Update for the City of Palm Springs DRAFT P.1CPS-0I.06WI J nomu+gCbrnem 11-ll-02.da November 2002 City of Palm Springs HOUSING ELEMENT UPDATE TABLE 10 HOUSEHOLD INCOME BY TENURE 1990 Renter Owner Total Income Number % of Total Number % of Total Number °% of Total $0-$19,999 3,665 48.0% 1,672 21.4% 5,337 34.5% $20,000-$34,999 2,184 28.6% 1,679 21.5% "21 25.0% $35,000-$49,999 841 11.0% 1,280 16.4% 2,121 13.7% $50,000+ 951 12.4% 3,177 40.7% 4,1281 26.7% Total 1 7,6411 100.0%1 7,8081 100.0%1 15,4491 100.0% Median 1 $27,538 Note:Number of households reporting is 15,449,as compared to the 18,783 households in the City.The percent of total column represents the proportion of households based on the 15,449 figure. Source: 1990 Census,Summary Tape File 3A. The 1999 DOF estimates indicate that low income households represent approximately 43.8%of all Palm Springs households. The City's estimated median household income in 1999 is$29,266, as compared to the estimated median family income of$36,337. These numbers are significantly lower than the 1999 • Countywide median income household income of$47,400. Table 11 shows the 1999 estimated household income distribution in the City of Palm Springs as compared to the County of Riverside. Nearly one-quarter of all households in the City of Palm Springs earn less than$15,000 annually. Another 18.9%of households in Palm Springs earn less than$25,000 annually. Towards the upper end of the income scale, Palm Springs has a smaller proportion of households earning between$35,000 and$75,000 than the county (26.5%and 36.7%respectively). TABLE 11 ESTIMATED HOUSEHOLD INCOME DISTRIBUTION CITY OF PALM SPRINGS AND RIVERSIDE COUNTY 1999 City of Palm Springs County of Riverside Household Income Range Number Percent Number Percent $0-$14,999 4,763 24.71% 93,510 18.70% $15,000-$24,999 3,649 18.93% 79,158 15.83% $25,000-$34,999 2,880 14.94% 69,357 13.87% $35,000-$49,999 2,633 13.66% 89,659 17.93% $50,000-$74,999 2,476 12.84% 94,010 18.80% $75,000-$99,999 1,252 6.49% 38,804 7.76% $100,000 or More 1,6271 8.44%1 35,5541 7.11% Total 19,2801 100.00%1 500,0511 100.00% Source:National Decision Systems • The Planning Center Page 13 November 2002 P:ICPS-O/.OGIDr fr Ho„rr„a ekmwu 11-11.02.na DRAFT II. Community Profile Additional 1999 information from National Decision Systems (NDS) indicates that households headed by very young and elderly persons have the highest share of households in the very low income category, which roughly corresponds to an income of$25,000 per year. A total of 61.8%of households headed by persons under 25 years old and 64.2%of those headed by persons aged 75 or older earn less than $25,000 annually.An additional 48.3%of households headed by persons 65 to 75 years old earn less than $25,000 annually.Additionally,35%of households headed by persons aged 25 to 64 years earn less than$25,000 per year. Although the census classifications for income are not the same as the household income categories used by the State of California for housing affordabiiity!analysis,general comparisons can be made. The State of California uses four income classifications for the purpose of determining housing affordability and need in communities. This method is consistent with definitions of low and moderate income households used in various Federal and State housing programs (e.g. Density Bonus and Section 8). It is based on an average household size of a family of four. In brief,these categories are: 1)Very Low Income: 50%or below the median income;2) Low Income: 51%to 80%of the median income;3) Moderate Income: 81 to 120%of the median income; 4) Above Moderate: More than 120%of the median income. In 1999, SCAG calculated the distribution of households in the various income categories based on slightly different criteria. The definition of very low andl low income households is consistent with the above, at up to 50%of the median and between 50 to 80%of the median respectively for very low and low income households. Moderate income households are calculated up to 95% of the median income, and above moderate income households include income of 96%of the median and above. Based on • the SCAG criteria, and a median family income of$47,200 in 1999 for a family of four,the following Table 12 presents the 1999 distribution of households by income: TABLE 12 HOUSEHOLDS BY INCOME CATEGORY 1999 Income Category %of Median' Number of Households %of Households Very Low/up to$23,600 <50% ! 4,957 25.5% Law Income/$23,601 to$37,760 51%to 80% i 3,477 18.1% Moderate lncome/$37,760to$44,840 81%to95% ' 1,655 8.1% Above Moderate Income/Above$44,841 + 9,258 48.1%96% Total 19,247 t00% Source: SLAG RHNA 1999 Another useful tool in determining household income characteristics is to examine the number of households below the poverty threshold. Lower income households may require housing with rents or payments lower than payments associated with market rate housing. Often, payment assistance is needed from local, state or federal government agencies to assist these households in getting adequate housing. The Census Bureau determined that the poverty threshold for a family of four persons was $12,674 as reported in the 1990 census. This threshold is applied on a national level and is not adjusted for regional, state or local variations in the cost of earnings. Table 13 displays the number and percentage of households below poverty level in the City of Palm Springs according to household type. The 1990 Census reported that 4,991 persons,which is 13%of • Page 14 Housing Element Update far the City of Palm Springs DRAFT PACPS-01.0G10ro/r Ho..,,s e1�„,11a 1-02.d. November 2002 City of Palm Springs HOUSING ELEMENT UPDATE the persons for wham poverty status is determined,are below the poverty level. In terms of households, 2,013 households, which is 10.7%of all households in the City,were below the poverty level. Approximately 21.2%of the female-headed households were below the poverty level,whereas only 6.0% of married couple families were below the poverty level.The incidence of non-family households in poverty was in the middle proportionately,with 13%of all non-family households having incomes below the poverty level. TABLE 13 HOUSEHOLDS BELOW POVERTY LEVEL 1990 Total Number of Households Percentage of Households Household Type Households Below Poverty Level Below Proverty Level Married Couple Families 7,942 478 2.5% Family With Children 2,217 251 1.3% Family Without Children 5,632 227 1.2% Male Households 673 73 0.4% With Children 297 57 0.3% Without Children 346 16 0.1% Female Households 1,635 347 1.8% With Children 845 299 1.6% Without Children 789 48 0.3% Nan-Family 8,533 1,115 5.9% Total Households 18,783 2,013 10.7% Source: 1990 Census Universe:Total households.Percentage of households below poverty level calculated on this figure. As of February 11,2000,the City of Palm Springs had a total of 4,270 persons receiving welfare assistance. This represents a total of 9%of the population. A total of 947 persons (2%of population) received a cash benefit. In addition, 2,075 persons received Medi-Cal only, and 410 received Food Stamps only. 1999 National Decisions Systems data estimates that 7.0%of households headed by a person below age 65 are below the poverty level,and 3.7%of households headed by a person over age 65 are below the poverty level. D. HOUSING INVENTORY AND MARKET CONDITIONS This section summarizes the housing inventory in the City of Palm Springs and prevailing market conditions. Analysis of past trends in the housing stock provides a method of projecting the future housing needs of Palm Springs. 1, Housing Stock Profile According to the 1990 Census,there were a total of 30,517 housing units in the City. The State of California Department of Finance (DOF) extrapolates this Census data each year, in conjunction with • locally provided building permit information,to provide annual housing estimates. Table 14 summarizes the composition of the housing stock from 1990 to 1999. The following table indicates that the number The Planning Center Page 15 November2002 AkCPS-oI.oGDm/rHani,Ehm.mudl-02.e DRAFT IL Community Profile of housing units in the City increased by 1,103 units between 1990 and 1999, of which 673 (61%) were units occupied on a year round basis. This represents an average growth of 122 total seasonal and year round units per year, or approximately 75 year round housing units annually. These growth factors reflect the slow down in construction due to the economic conditions in the region over the early to mid 1990's. TABLE 14 COMPOSITION OF HOUSING STOCK BY UNIT TYPE 1990- 1999 Palm SpringsI Riverside County Type 1990 Percent 1999 Percent 1990 Percent 1999 Percent SF detached 9,906 32% 10,460 33% 274,685 57% 344,415 60% SF attached 6,124 20% 6,148 19% 38,282 8% 39,872 7% MF(2-4 units) 2,010 7% 2,267 7% 25,758 5% 27,463 5% MF(5+ units) 9,477 31% 10,411 33% 65,464 14% 79,667 14% Mobile Homes 3,000 10% 2,307 7% 79,658 16% 77,870 14% Total 1 30,517 100%1 31,593 100%1 483,847 100%1 569,287 100% Source: 1990 Census,Summary Tape File 3A,Department of Finance Population&Housing Estimates 1/1/99. • Single family detached housing comprises 33.1% of housing units in Palm Springs, while single family attached housing accounts for 19.5% of housing units', Palm Springs has a lower percentage of single family housing than the County of Riverside as a whole, at 52.6%compared to a countywide average of 67.5%. Residential properties with two to four units comprise 7.2%of housing units in Palm Springs, compared with 4.8% countywide. Multi-family developments with five or more units comprise 33.0% of the housing units in Palm Springs, compared with 13.9% in Riverside County. Mobile homes comprise the remaining 7.3% of the housing units in Palm Springs. Multi-family housing typically provides the largest source of both rental and affordable homeownership opportunities in a community. Single family units account for 53.7% of new housing units added over the 1990 to 1999 period. Two to four unit properties account for 23.5%of the increase„and multi-family properties with five or more units accounted for 20.5%. Mobilehomes accounted for the remaining 2.3%of new units added over this time period. In terms of actual numbers of dwelling units in the City,the data suggest that the stock of multi-family units, as well as detached and attached single-family units increased slightly between 1990 and 1999. Since multi-family homes' are usually renter tenured, this pattern of new construction is favorable for lower income residents, since the construction of multi-family units appears to be keeping pace with single-family home construction. During the coming planning period, a policy of the City will be to ' Multi-family includes condos that tend to be owner occupied. Many seasonal residents prefer ownership of condominium so as to minimize property maintenance responsibilities. Page 16 Housing Element Update for the City of Palm Springs DRAFT P CPS-or ueO/r H„„°s El...1,r 1.i 1-oz.i, November 2002 City of Palm Springs HOUSING ELEMENT UPDA TE pursue the maintenance and/or creation of more affordable rental options for those households unable to purchase homes. 2. Tenure The majority of units in the City are owner-occupied: approximately 59% of the housing stock in 1990 was owner-occupied and the remaining 41% were renter occupied. Tenure data by housing type is provided in the following table: TABLE 15 OCCUPIED HOUSING UNITS BY TENURE 1990 Owner-Occupied Units Renter-Occupied Units Type Number Percent ' Number Percent 1 Total Single-Family 8,177 44% 1,705 9% 9,882 2-4 Multi-family 232 1% 837 4% 1,069 5 or more Multi-family 683 4% 4,862 26% 5,545 Mobile Home 1,658 9% 146 1% 1,804 Other 213 1% 109 1°% 322 Total 10,9631 59% 7,659 41% 18,622 ' Represents proportion represented out of total occupied housing units. Source: 1990 Census,Summary Tape File 3A. It is estimated that in 1999, 59.4% of occupied units were owner occupied, and 40.6% were renter occupied, indicating that the proportional representation has remained stable over the past decade. 3. Vacancy Rates The vacancy rate is a measure of the general availability of housing. It also indicates how well the available units meet the current housing market demand. A low vacancy rate suggests that households may have difficulty finding housing within their price range; a high vacancy rate may indicate either the existence of a high number of units undesirable for occupancy, or an oversupply of housing units. The availability of vacant housing units provides households with choices on different unit types to accommodate changing needs (i.e., single persons, newly married couples and elderly households typically need smaller units than households with school age children). A low vacancy rate may serve to increase market rents and housing costs, as shortages tend to result in higher prices and may limit the choices of households in finding adequate housing. It may also be related to overcrowding, as discussed in later sections. • The Planning Center Page 17 November 2002 P�crs-nr oafl a/1 rm,,,�,,eir.,,,1 1-11-02 e, DRAFT II. Community Profile Table 16 Housing Vacancy By Unit Size 1990 Total I Housing Type Category Number % 0& 1 Bedroom % 2 Bedrooms % 3+Bedrooms % Total Housing Units 30,517 100% 7,710 100% 12,759 100% 10,048 100% Occupied Units 18,622 61% 4,836 63% 6,848 54% 6,938 69% -Rental Units 7,659 25% 3,694 48% 2,888 23% 1,077 11% Ownership Units L752 36% 1,;142 15% 3,960 31% 5.861 58% Total Vacant 39% 2,874 37% 5,911 46% 3,110 31% -Vacant for Rent* 3.3% N/A N/A N/A -Vacant for Sale* 2.5% N/A N/A N/A -OtherVacanVSeasonal* 33.2% N/A N/A N/A * As a percentage of total housing units. Source: 1990 Census The 1990 Census indicated a vacancy rate of 39%for the City, of which approximately 6%was attributed to year round occupied housing. The remainder of the vacancies were attributed to seasonal vacancies • and vacancies which were classified as "other", which may have also included a number of units which had been recently constructed, but for which certificates of occupancy may not have been issued, or which were not yet listed for rental. Unique to Palm Springs and other communities in the Coachella Valley,the majority of vacant units are shown as vacant seasonal units, meaning they are held for seasonal occupancy and are not available for sale or ;rent. As shown in the above table,the majority of vacant units in the City were two bedroom units, followed by three or more bedroom units. However, the Census did not make a distinction between vacant units in regards to the number of bedrooms by seasonal or year round occupancy. 1999 estimates for vacant units by status are available from National Decision Systems. Statistics show that approximately 12,314 units were vacant in 1999, which correlates to 39% of the total housing stock. Unique to Palm Springs and other communities in the Coachella Valley, more than one-quarter of the City's housing units (27.3%) are shown as vacant seasonal units, meaning they are held for seasonal occupancy and are not available for sale or rent. By comparison, only 7.4% of the units listed countywide are listed as seasonal units. The data show that Non-Seasonal Vacant Units for Rent comprise 3.3% of Palm Springs' housing stock, and Non-Seasonal Vacant Units for Sale represent 2.5% of all units in the City. These categories are considered the "traditional" vacancy in a housing market. An additional 5.9%of the total housing stock is considered Vacant—Other. David Rosen and Associates conducted a limited apartment vacancy survey based on classified ads for furnished and unfurnished apartments listed in the Desert Sun on August 24, 1999. Vacancies were determined through follow up telephone interviews with managers and brokers of units advertised for rent. The results of the survey indicated a relatively tight rental market in Palm Springs, even during the off-peak season. Many of the units advertised in August were no longer available in September. Of the 1,094 units covered in the survey, only 26 units were 'reported available for rent, for a vacancy rate of • 2.4%. The Regional Housing Needs Assessment (RHNA) prepared by SCAG in 1999 identifies a target Page 18 Housing Element Update for the City of Palm Springs DRAFT e CPS OJ ocD."/n......,c&,,,r„°7 r-r aye A November 2002 City of Palm Springs HOUSING ELEMENT UPDA TE vacancy rate of 3.1%for its member jurisdictions. A vacancy rate of between 3% and 5% is considered normal, so that it ensures the continued upkeep of rental properties and keeps housing costs stable. 4. Age of Housing Stock Age is one measure of housing stock condition and a factor for determining the need for rehabilitation. Without proper maintenance, housing units deteriorate over time. Thus, units that are older are likely to be in need of major repairs, such as a new roof or plumbing. As a general rule of thumb, houses 30 years or older are considered aged and are more likely to generate major repairs. In addition, older houses may not be built to current housing standards for fire, earthquake safety, and energy efficiency. Table 17 identifies the distribution of housing units by year built in 1999. According to the Census, the highest rate of construction occurred in Palm Springs in the 1970's, accounting for 32.2%of the existing housing stock. The earlier decade, during the 1960's, was another active period of housing construction in Palm Springs, accounting for 19.8% of existing units. About one-fifth of Palm Springs' housing units were built prior to 1959 and are at least 40 years old. Only 3.5%of the City's stock was developed during the last decade. TABLE 17 AGE OF HOUSING STOCK Year Built Number of Units Percent of Units Before 1940 787 2.5% 1940-1949 1,329 4.2% 1950-1959 3,659 11.6% 1960-1969 6,264 19.8% 1970-1979 10,188 32.2% 1980-1990 8,290 26.2% 1990-1999 1,103 3.5% Total 31,593 100.0% Note:The statistics presented in the 2000 Consolidated Plan are not comparable to the information reported by the 1990 census,as a different base for units is used. Source: 1990 Census,National Decision Systems,California Department of Finance 1999 for 1990-1999 In terms of the tenure distribution of units by year of construction, the majority of owner occupied units were built between 1960 to 1980, with an additional 25% of the units built prior to 1959, thereby reflecting that a large proportion of the units are over 30 years of age. This indicates that a large proportion of the City's owner-occupied housing units are at the age where significant maintenance may be necessary, and programs designed to assist homeowners in the maintenance and rehabilitation of units will be essential. Analysis of renter occupied units reveals comparable trends-that the majority of rental units are over 30 years of age and will be require maintenance and rehabilitation activities over the upcoming planning period in order to preserve the City's existing stock of affordable units. The Planning Center Page 19 November 2002 P.1CP5-o1 Oslo,/H,,,,,,,d,Eleme°,a-r 1-02 d,, DRAFT H. Community Profile 5. Housing Conditions Housing is considered substandard when physical conditions are determined to be below the minimum standards of living, as defined by Section 1001 of the Uniform Housing Code. A housing unit is considered substandard if any of the following conditions exist: Inadequate sanitation Structural hazards Nuisances Faulty weather protection Fire hazards Inadequate maintenance Overcrowding Hazardous wiring, plumbing or mechanical equipment Households living in substandard conditions are considered as being in need of housing assistance even if they are not actively seeking alternative housing arrangements. In addition to structural . deficiency and standards, the lack of certain infrastructure and utilities often serves as an indicator of substandard conditions. According to the 1990 Census,there were 139 units lacking complete plumbing facilities, and 351 units lacking complete kitchen facilities. The majority of units were hooked up to the City sewer system, with less than 3% on septic tanks or some other means of waste disposal. Additionally, less than 1%of the units relied on a means of heating other than gas or electricity. Less than one-half of a percent of the units in the City drew:their water sources from wells or some other source (such as bottled water). These figures indicate that only a small proportion of units in the City reflect substandard infrastructure and utility conditions. The California Statewide Housing Plan estimates that 10% of the State's housing stock is in need of rehabilitation or replacement. Applying this ratio to the current number of housing units in the City, an approximate 3,159 units in the City are estimated to be in need of some repair. The City has established four target neighborhoods for code enforcement and rehabilitation assistance priority, as part of the "Recapture our Neighborhoods" program. The four target areas include: Desert Highland Cottonwood/Chuckwalla Crossley/Lawrence tract South Midtown (south of downtown bound by Indian Avenue, Ramon Road, Riverside Drive,to Sunrise Way) The majority of units in need of maintenance, code enforcement and rehabilitation are concentrated in these areas, although attention may be required in any of the older areas of the City. Page 20 Hoeuing Element Update for the City of Palm Springy DRAFT P.�CPs-o1.oc�D.h yo„„ay El...w 11-11-02 A November 2002 City of Palm Springs HOUSING ELEMENT UPDA TE a. Housing Costs and Rents This section discusses resale costs of existing housing, as well as the average rental prices in the City. The information provided is based on data from reliable real estate industry and demographic data sources, the 1990 Census, and data provided by the October 1999, David Paul Rosen &Associates Affordable Housing Market Analysis Report prepared for the City. b. Existing and New Home Price Trends The City of Palm Springs, as the rest of Southern California, experienced a drop in existing and new home prices in the early 1990s following a price peak in 1989/90, Since the early 1990's recession, market costs are continuing to rise, although the 1999 reported median home value of$140,532 has not fully recovered to the 1990 value, reported at$141,200 by the 1990 Census. According to data provided by National Decision Systems, Palm Springs had a higher proportion of homes valued between $75,000 and $124,999 than the County as a whole (34%and 29.7% respectively), whereas the County had a greater proportion of homes priced between $125,000 and $199,999 (39.1% and 32.8% respectively). However, Palm Springs had more homes valued at$300,000 and above than the County (11% compared to 6.2%, respectively). Table 18 reflects 1990 and 1999 estimated housing values by price range, as provided by the 1990 Census and estimated by National Decision Systems. The table shows that in 1999, the majority of homes in Palm Springs were valued between $75,000 and $199,999. Within this range, 15.7% of the homes were valued between $75,000 and $99,999, and 18.3%of all homes in the City were valued between $100,000 to $124,999. About 6.7%of all homes were valued at less than $75,000, while about 26.5% of the stock was valued at$200,000 and above. Differences in proportions of homes within the different value classifications between 1990 and 1999 were slight, with the most marked difference in the $300,000 and above category. TABLE 18 HOUSING VALUES 1990 AND 1999 1990 1999 Property Value Number Percent Number Percent Less Than$75,000 524 6.7% 767 6.7% $75,000 to$99,999 1,271 16.3% 1,798 15.7% $100,000 to$124,999 1,496 19.2% 2,096 18.3% $125,000 to$149,999 1,109 14.2% 1,706 14.9% $150,000 to$199,999 1,411 18.1% 2,050 17.9% $200,000 to$299,000 1,089 13.9% 1,775 15.5% $300,000 and Above 908 11.6% 1,260 11.0% TOTAL 7,808 100% 11,452 100% Median Property Value $141,200 $140,532 Source. 1990 Census,National Decision Systems 1999,California Department of Finance,David Rosen&Associates Table 19 describes representative housing prices in Palm Springs. Existing products and associated prices reflect data reported for December 1999. New products reflect developments that have recently sold, and/or are still selling in Palm Springs. The Planning Center Page 21 November 2002 P PCPs 01 oeiD/r n,.,.,,Ele e,.r r r-i 7-02 a°° DRAFT II. Community Profile s TABLE 19 NEW HOUSING PRICES 1999, Development Base Price Range I Square Foot Range Price per Square Foot New Attached Products' Sandstone Villas' $53,500-$85,000 810-1500 $66-$57 ;-New gelached,Products - Vintage Palms $194,400-$214,400 1,9 40-2,334 $100-$92 Flora Vista $150,000-$190,000 1,245-1,610 $95-$118 Park San Rafael $140,000-$179,000 1,340-1,870 $96-$105 Colony At El Mirador $425,000-$512,000 1 3,079-3,500 $138-$146 Jasmine $220,000-$300,000 2,293-2,994 $96-$105 'Sandstone Villas are older apartments that were converted to condominiums Source: Los Angeles Times and DataQuick Corp.,2000;David Paul Rosen&Associates,1999. TABLE 20 REPRESENTATIVE RESALE,HOUSING PRICES 2000 CITY OF PALM SPRINGS Square Foot Range Resale Price ,Range Average Price %of sample `"One Bedroom ` No statistics available N/A N/A' N/A ! Two Bedraoma 922 sq.ft $65,000' $65,000, <1% 802-1,772 sq.ft $85,000-$120,000 $100,915 7% 1,452-1,684 sq.ft $135,000-$170,000 $111,510 5% 1,159-2,158 sq.ft $170,000+ $225,000, 8% AVERAGE PRICE $152,3022 21% Three Sedroom 922-1,352 sq.ft $65,000-$66,000 1 $65,500 3 1,050-1,833 sq.ft $72.000-$120,000 1 $97,800 25% 1,270-2,084 sq.ft $122,500-$170,000 1 $149,100 15% 1.532-3,207 sq.ft $170,000+ $330,3602 22% AVERAGE PRICE $175,527 65% Foar,Bedroom r . . 1,248-1,796 sq.ft $78,000-$109,000 $90,000 �3% 1,608 sq.ft $137,500 $137,50D, <1 2,011 -4,667 sq.It $265,000-$640,000 1 $379,3332 1 8% AVERAGE PRICE $266,2502 12% EzisliagResale,Attached Prodacts;:f= Condominiums (1-2 bedroom) $19,000-$68,500 568-1,344 $25-$75 Condominiums (2-3 bedroom) $70,000-$112,000 1,180-1,812 $49-$88 Condominiums (2-3bedroom) $120,000-$153,000 1,512-1,943 $71 -$81 Condominiums (3-4 bedroom) Above$170,;000 2,593-2,883 $73-$95 3 BR,1 '/2 Bath $165,000 1,465 $113 2 BR 1 '/2 Bath $108,000 1,155 $94 'Only one home was available at this pnce point out of the sample. The average price reflects the single available unit Two two-bedroom units at asking prices of$2,600,000 and$670,000 were not calculated in the calculation of the average as their inclusion skews the cost and range significantly,and does not reflect the general nature of the available stock. An additional four-bedroom unit at an asking price of$640,000 was not included in the calculation of the average as its inclusion skews the average cost and range • significantly,and does not reflect the general nature of the available stock. Source Data Quick Information Systems,David Paul Rosen&Associates,October 1999 Page 22 Housing Element Update for the City of Palm Springs DRAFT P PCPs-or.oc�o,/ffi.,,K ue,,,e,,,rr-a-02A, November 2002 City of Palm Springs HOUSING ELEMENT UPDA TE Palm Springs has a relatively affordable housing stock. Review of the market sales prices for new and resale homes identify the following findings: The median sales price for resale single family homes in late 1999 was $148,000. New attached products are available for well under$100,000, although unit sizes at the lower end of the cost range typically are one and two bedroom units. New detached products are available at prices in the mid to upper$100,000's for units under 1,600 square feet, and around $200,000 and above for units typically above 2,000 square feet. Resale attached products, typically condominiums, range in price from $19,000 for a one bedroom unit to almost$300,000 for a 2,880 square foot unit, depending on size, location in the City, proximity to golf course amenities and views, etc. The average price of a resale condominium unit is $92,288, with the median being $80,000. Approximately 42% of the condominiums sold for less than$70,000, and almost 40% of the condominiums sold for between $71,000 and $120,000. Two bedroom units comprised 21% of the resale stock,the majority of which were either priced over$170,000 or at an average of$100,915. Approximately 65%of the units offered for sale at the time of the survey were three bedroom. Only 3% of the units offered for sale were three bedroom units priced at less than $70,000, and these units appeared to be smaller in size. However, 25%of the total stock was comprised of three bedroom units at prices between $70,000 and $120,000, with sizes ranging from 1,050 to 1,833 square feet. Over 22% of the total available stock was comprised of three bedroom units with sales prices exceeding $170,000, with an average price of $330,360. An additional 12% of the units were comprised of four or more bedrooms. The majority of units with four bedrooms or more were sold at prices exceeding $200,000. C. Rental Prices The 1990 Census reports the median gross rent of all rental units in the City at$563 per month. Table 19 lists the rental ranges per the 1990 Census and the number of units that rented within each particular price range. The table shows that in 1990 there was an abundance (2,883) of two-bedroom rental units in the City, with nearly as many one-bedroom units available (2,702). Further analysis indicates that most—about 41%—of apartment units in Palm Springs rented for between $500 and $749. i The Planning Center Page 23 November 2002 P iCPs-ui 0ao,,fl H,,„,Elo,,,„11-11-02 A, DRAFT H. Community Profile TABLE',21 RENTS BY NUMBER; OF BEDROOMS 1990 Range Studio 1 Bedroom 2 Bedroom 3 Bedroom Total % Total $0-$499 678 1,354 508 106 2,646 34.6% $5004749 252 1,205 1,449 199 3,105 40.6% $750-$999 23 41 613 259 936 12.2% $1,000 + 0 0 180 449 629 8.2% No Cash Rent 261 1021 1331 641 325 4.3% Total 1 9791 2,7021 2,8831 1,0771 7,6411 100.0% Source: 1990 Census. In August 1999,the City conducted a rent survey of market rate housing units located within the City. The results indicated that a majority of rental units were studio, one and two bedroom units, and the majority of unassisted rental units are beyond the financial reach of very low-income households. No three-bedroom units were reflected in the survey. It is assumed that the majority of three bedroom rental units are not found in apartment complexes, but are privately owned condominiums or single family (attached or detached) units which are offered for rent! Table 22 summarizes current market rents. Page 24 Housing Element Update for the City of Palm Springs DRAFT e ices-01 na�o�1 H,.,,s el,,,, 11-11-02 do, November 2002 City of Palm Springs HOUSING ELEMENT UPDA TE TABLE 22 RENTAL PRICES OF MARKET UNITS 1999 Property Name/Owner Studio Price 1 Bedroom Price 2 Bedroom Price Desert Investment Group $475 579 Highland Drive $600 509 Highland Drive $500 $650 Desert Investment Group $750 $775 1565 N. Palm Canyon $450 Cornerstone $525 Airport Garden Apartments $525 Continental Gardens $550 Gallery Apartments $485 $625 Parkwood $595 Desert Crest $535 Caribbean Apartments $595 1900 Baristo Rd. $450 Las Palmas $325 641 N.Palm Canyon Drive $425 1530E.Palm Canyon Drive $425 South of Ramon $550 Poolside Studio $350 • Tahquitz Mesa Villas $600 $800 Camino Parocela $550 2786 Tahquitz Canyon $575 $690 Joshua Tree Apartments $550 $660 $775 N/A $680 $780 N/A $450 $550 N/A $500 N/A $375 N/A $450 N/A $625 N/A $475 $575 N/A $500 $550 N/A $550 $625 N/A $700 Average $461 $556 $669 N/A=No name for units—could be multi-family rental in a small complex or a single family home, mobilehome or condominium rental. Source: 2000-2004 Consolidated Plan. Classified advertisements for furnished and unfurnished apartments in the Desert Sun,August 24,1999;telephone interviews conducted with apartment managers and brokers; David Paul Rosen&Associates d, Affordability Gap Analysis The costs of home ownership and renting can be compared to a household's ability to pay for housing, based on the 2000 HUD median income of$47,400 for the Riverside County area. Table 23 identifies • maximum affordable rents and purchase prices by income category for both a family of four and a single person household, based on 30%of income expended. The range of maximum affordable housing costs is adjusted for households with two and three, or more than four persons. Homeowners and The Planning Center Page 25 November 2002 P-1CPs-01.061n,I DRAFT II. Community Profile renters may be required to pay for water, sewer and trash pickup costs in addition to the usual electric, gas and phone although typically water and trash pickup are included in apartment rents. Calculation of the 30% "overpayment guideline" does not, however, include allowance for utilities, which may impose additional costs of between $50 and $100 per month. (Subsequently, the addition of these costs may cause a unit that would otherwise be affordable to become a condition of overpayment for the lower- income renter or homeowner. Overpayment refers to renters and homeowners who must pay more than 30% of their gross incomes for shelter. A high cost of housing eventually causes fixed-income, elderly and lower income families to use a disproportionate percentage of their income for housing. This may cause a series of related financial problems that may result in a deterioration of housing stock, because costs associated with maintenance must be sacrificed for more immediate expenses, or inappropriate housing sizes and types to suit the needs of the household. TABLE 23 2000 MAXIMUM RENT AND PURCHASE PRICE BY INCOME CATEGORY CITY OF PALM SPRINGS Maximum Affordable Maximum Affordable Income Category Annual Income Rent Payment Z Purchase Price' Four Person Household Very Low(<50%) $23,700 $593 $75,000 • Low(51-80%) $23,701-37,900 $948 $120,000 Moderate(81-120%) $37,901-56,880 $1,422 $170,000 Above Moderate(>120%) >$56,881 >$1,422 >$170,000 Median $47,400 Single Person Household Very Low <50% $16,600 $415 $52,000 Low (51-80%) $16,601-26,550 $664 $83,000 Moderate (81-120%) $26,551-$39,840 $996 $125,000 Above Moderate I>120% >$39,841 >$996 >$125,000 Median $33,200 ' Based on HUD income limits,January 2000 2 Calculated as 30%of income divided by 12 months. s Assumes 10%down payment,an 8.5%interest rate and tax and homeowners insurance. Source:The Planning Center,2000 In the case of purchase,the 30%threshold includes payment on principal and interest, and an assumed 1.25% allocation for taxes and homeowner insurance.'' In actuality, taxes and insurance may sometimes exceed the assumed 1.25%. A 10% down payment and an 8.5% interest rate is assumed, reflecting 1999/2000 market conditions. e. Rental Analysis Table 24 compares typical 1999 market rents for studio, one-, and two-bedroom units in Palm Springs with the monthly rent affordable to a family of two persons at different income levels. As a large proportion of the City is comprised of elderly persons and small households, a household of two is used • in this analysis. The 1999 HUD utility allowance for a two-bedroom unit has been subtracted from affordable monthly housing costs to derive the affordable monthly rent shown for each income level. Page 26 Housing Element Update for the City of Palm Springs DRAFT P iCPS-01.OG oD.q,H°,,,,,,,y cl...q,n 11-1 i-,2,11, November 2002 City of Palm Springs HOUSING ELEMENT UPDATE TABLE 24 AFFORDABLE RENT AND PURCHASE PRICE BY ANNUAL INCOME CATEGORY 1999 Typical Market Rent 1999 Affordable Monthly Rent by Income Level Palm Springs 1999 family of Two Studio 1 Bedroom 2 Bedroom 40%of Median 50%of Median 60%of Median 75%of Median $460 $560 $670 $332 $426 $520 $660 ' Income limits established by HUD,January,1999. Based on 30%of income Assumes 10%down payment,a 8.5%interest rate and 1.25%tax and homeowners insurance and a 28%debt rate. Source: David Paul Rosen&Associates Affordable Housing Market Analysis Report 1999 Smaller households in the very low income category face challenges in the rental market, and also have few rental options available to them apart from boarding or sharing rental expenses with roommates, which may result in overcrowded conditions. The data indicates that a family of two earning 50%of the area median family income ($18,800 annually) would have to pay more than 30% of its income on housing to afford the typical rent for a studio apartment unit in Palm Springs, about$460 per month, and there were no one or two bedroom units which were within their payment range. A family of two earning 60% of the area MR, or$22,650 annually, would have to pay more than 30% of its income on housing to afford the typical Palm Springs one-bedroom rent of$560 per month. The typical rent for a two-bedroom unit, at$670 per month, as well as smaller one bedroom and studio units is affordable to a family of two earning approximately 75% of the area median income, or$28,300 annually, which are comparable to a low income household. Clearly, very low income households are significantly under-served by the current rental market. A very low income family of four would be able to afford selected two bedroom apartments, and the majority of one-bedroom units. However, a one-bedroom unit would not accommodate a family of four without resulting in significant overcrowded conditions. To avoid overcrowded conditions, a family of four must find housing with 2 bedrooms or more, which may be challenging for lower income families. Despite the relatively affordable housing stock in the City, there is an inadequate supply of affordable housing for very low-income and large families. Multi-family housing is the primary source of affordable housing in most communities. Apartment units in Palm Springs are concentrated in one and two- bedroom units, with some studio units available. The majority of three bedroom units that are available appear to be single family detached or condominium rentals. Therefore, there are very few apartments in the City appropriately sized for larger families. L Ownership Analysis With regard to home purchase opportunities in Palm Springs, data indicate that housing purchase opportunities in the City are quite limited for very low income households. Only 4%of the available stock was affordable to very low income households, although the majority of these were comprised of three bedroom units. However, smaller very low income households are generally priced out of the market totally. Approximately 35% of the available stock was affordable to lower income households, again, the majority of which are appropriately sized to accommodate four person households. Smaller households at the lower end of the low income range will have a much more limited selection of units from which to choose. Those in the moderate and above moderate-income category are served well by the Palm Springs housing market, particularly above moderate income households. The Planning Center Page 27 November 2002 P PCPs-m.aeiD!14,,,,ct,,,,,,,,1 r-1 i-oz,i, DRAFT II. Community Profile This page intentionally left blank. • Page 28 Housing Element Update for the City of Palm Springs DRAFT P ICPs-ol aeon.f,a�„,,,,A El,.,,,11-11-02A, November 2002 City of Palm Springs HOUSING ELEMENT UPDATE III. HOUSING NEEDS . . A. ExISTING NEEDS 1. Overcrowding In response to higher housing prices, lower income households must often be satisfied with smaller, less adequate housing for the available money. This may result in overcrowding. Overcrowding places a strain on physical facilities and does not provide a satisfying living environment. While some families with low incomes may opt for overcrowding to derive additional income, the cost of housing usually necessitates overcrowding for many lower-income residents. Both State and Federal Housing Law defines overcrowded housing units as those in which the ratio of persons-to-rooms exceeds 1.0. The rooms considered in this equation exclude bathrooms, kitchens, and hallways, but includes other rooms such as living and dining rooms. For example, a one-bedroom apartment with living room, kitchen, and bathroom would be considered overcrowded if it housed more than two persons. Overcrowding is often reflective of one of three conditions: Either a family or household is living in too small a dwelling; Familial household includes extended family members (i.e., grandparents or grown children and • their families living with parents, termed doubling); or A family is renting living space to non-family members. Whatever the cause, overcrowding is symptomatic of greater affordability issues. Some examples of when lack of affordability promotes overcrowded conditions include: large households unable to afford larger dwellings that must then move into smaller than acceptable units; older children wishing to leave home who are prohibited from doing so because they cannot qualify for a home loan and/or are unable to make rental payments; or grandparents or elders on fixed incomes who are unable to afford housing suitable for their physical handicaps, and must often move in with their grown children and families. According to the 1990 Census, 741 Palm Springs households were living in overcrowded conditions, which was approximately 4% of all households. The majority of households living in overcrowded conditions were renters. In 1999, 1,294 Palm Springs households were living in overcrowded conditions, 6.7% of all City households. The majority of the households living in such conditions are renters (70%) of which 640 are lower income households, representing 70% of all renter households living in overcrowded conditions. Table 25 describes overcrowding among Palm Springs renters and owners in 1999. The Planning Center Page 29 November 2002 P iCPs-m ac�n,-,,l H�.,y Eton...11-11-a2,i,, DRAFT III. Housing Needs TABLE,25 HOUSEHOLDS WITH'OVERCROWDING CITY OF PALM SPRINGS Less Than Greater Income 30% 30 to 50% 50 to 80% 80 to 95% Than 95% Total Renters 123 219 298 80 187 908 Owners 34 76 162 19 95 386 Total Overcrowded 157 295 461 100 282 1,294 Households Source: 1999 SCAG RHNA 2. Overpayment Overpayment refers to renters and homeowners who must pay more than 30%of their gross incomes for shelter. An overly high cost of housing eventually causes fixed-income, elderly and lower income families to use a disproportionate percentage of their income for housing. State housing policy recognizes that cooperative participation of the private and public sectors is necessary to expand housing opportunities to all economic segments of the community. A primary State goal is the provision of decent housing and suitable living environment for Californians of all economic • levels. Consistent with HUD's "threshold of overpayment" definition, California's housing administration has determined that, "Affordable housing costs with respect to very low, low and moderate income households shall not exceed 30% of gross household income." (Health and Safety Code, Section 50052.9). That is, when households must exceed 30% of their incomes for rent or mortgage payments, they are left with insufficient funds for other necessities, such as food, health care, clothing, and utilities.' This may cause a series of related financial problems,;and can result in a deterioration of housing stock, because costs associated with maintenance must be sacrificed for more immediate expenses (e.g. food, clothing, medical care, and utilities). Overpayment also promotes overcrowding, which leads to a variety of problems,from accelerating the rate of deterioration, to children's decreased performance in school, to code enforcement issues. HUD recognizes, however,that overpaying upper-income households are generally more able to secure housing within their budgets, and are more capable of paying a larger proportion of their income for housing. The distinction between renter and owner housing overpayment is important because, while homeowners may choose to allocate a higher percentage of their disposable monthly income on housing costs, this allocation is justified in light of the beneficial investment qualities of ownership. New or young owner households may overextend themselves financially to afford a home purchase, but the owner maintains the option of selling the home and may realize tax benefits and/or appreciation in value. Renters, on the other hand, are limited to the rental market, and are generally required to pay the rent established by that market. The discrepancy between renter and owner households is largely reflective of the tendency for year-round renter households to have lower incomes than their owner counterparts. The Southern California Association of Governments (SCAG) has prepared a 1999 Regional Housing • Needs Assessment (RHNA) in which it identifies housing overpayment for Palm Springs households. Page 30 Housing Element Update far the City of Palm Springs DRAFT v�cvS-01.oeiD,/r H�u,,5 Element 11-11-02 d"r November 2002 City of Palm Springs HOUSING ELEMENT UPDATE Table 26 shows that there were an estimated 7,676 total households overpaying for housing in 1999, which is 40%of the total number of households in the City, of which 51%were rental households. The table shows that 75% of all overpaying households earned below 80%of the County median income. Almost 50%of all overpaying households earned less than 50%of the median income. In 1999, 20%of all Palm Springs households were renters overpaying for housing. This is significant because renters comprise approximately 40%of all Palm Springs households, indicating that half of the City's renters overpay. TABLE 26 HOUSEHOLDS WITH OVERPAYMENT BY INCOME CATEGORY CITY OF PALM SPRINGS Less Than Greater Household Tenure 30% 30 to 50% 50 to 80% 80 to 95% Than 95% Total Renters 1,112 1,228 1,143 201 253 3,937 Owners 653 680 934 349 1,122 3,739 Total Overpaying 1,765 1,909 2,077 550 1,375 7,676 Households Source:1999 SLAG RHNA Percentages based on HUD Median Family for Riverside County,$47,200 in 1999 • 3. Special Needs Groups State Housing Law requires that the special needs of certain disadvantaged groups be addressed. These households typically experience difficulty in securing decent, affordable housing, and are not well guarded under market conditions. The needs of the elderly, handicapped, large families, female heads of household, the homeless and farm workers are summarized in Table 31 and addressed below: a. Elderly Persons Because of the high proportion of elderly persons in the City (26%), and its allure as a premier retirement destination, the special housing needs of the elderly are an important concern in Palm Springs. This is especially so since many retired persons are likely to be on fixed low incomes, and at greater risk of housing overpayment. In addition,the elderly maintain special needs related to housing construction and location. The elderly often require ramps, handrails, lower cupboards and counters to allow greater access and mobility. In terms of location, because of limited mobility the elderly also typically need access to public facilities (i.e., medical and shopping) and public transit facilities. Mature citizens also may need special security devices for their homes to allow greater self-protection. In many instances, the elderly prefer to stay in their own dwellings rather than relocate to a retirement community, and may require assistance with home repairs and manual house/yard work. In general, every effort should be made to maintain their dignity, self-respect, and quality of life. Finding reliable means of transportation to medical appointments, senior centers, meal sites and shopping are also continued concerns for seniors. Many seniors lack private transportation due to • physical or financial limitations. As reported in the 1990 Census data, 10,324 City residents, or nearly 25.7%of the total population, were 65 years of age or older, increasing to 26.1% of the population by 1999 (David Paul Rosen Associates, The Planning Center Page 31 November 2002 e,icrs-nr.oao-p ivo,,,,,,A Etamevr r 1-11-oz.6, DRAFT III. Housing Needs 1999). This indicates that the population of Palm Springs continues to have a significant elderly component that has slowly grown during the 1990's. Approximately 3,099 seniors lived alone in non- family households. In terms of tenure, 4,999 owner households and 1,647 renter households were comprised of persons over the age of 65. Table 27 shows the number and percent of elderly persons in Palm Springs (65 and over) with mobility and/or self-care limitations (considered frail). Either or both of these conditions may indicate a need for supportive housing. TABLE 27 ELDERLY MOBILITY AND/OR',SELF-CARE LIMITATIONS 1990 %:of Total in %of Total in Mobility and Self-Care Status Male Cohort(65+) Female Cohort(65+) Total Mobility Limitation Only 197 1.9% 395 3.8% 592 Self-Care Limitation Only 195 1.9% 221 2.1% 416 Both-Mobility and Self-Care Limitation 171 1.7% 459 4.4% B30 Total with Limitation 1 5631 5.5% 1,075F 10.4%1 1,638 Total (65+)' 1 10,324 . 'All percentages are calculated on this figure. Source:U.S.Bureau of Census,1990, Therefore, approximately 15.9%of the elderly population was in need of either transportation or comprehensive health care and/or both. To the extent that some of this particular special needs group may also have financial limitations, or both, this Housing Element will describe policies and programs for their assistance. In terms of delivering housing assistance, there are a number of affordable/senior housing sites in the City, including: Heritage Apartments—sixty-seven (67) affordable units for seniors/adults; Rancheria del Sol—seventy-six (76) affordable units to families and seniors; Pacific Palms Apartments—offers 138 affordable units to families and seniors Vista Serena—offering fifty-seven (57) units exclusively to the elderly Vista del Monte—fifty-two (52) units are offered exclusively to seniors Palm Springs Senior Citizens—provides 116 Units for seniors • Page 32 Housing Element U date or the City o Palm Springs g % P } 3 f DRAFT P PCPs-01 nc�D,/e°,,,,,,a ek,° r r 1-1 r-02 A, November 2002 City of Palma Springs HOUSING ELEMENT UPDA TE b. Large Families The 1990 Census reported 1,176 households in the City of Palm Springs with five or more persons, which constitute 6.3% of total households in the City. Of these,there were 575 (49%) owner-occupied and 601 (51%) renter occupied housing units. Large family households need special consideration because they generally require larger dwellings with sufficient bedrooms to meet their housing needs, without overcrowding. But family households with five or more persons often face limitations in being below national poverty levels, and often experience difficulty securing adequate housing suitable for their expanded needs. Difficulties in securing housing large enough to accommodate all members of a household are heightened for renters, because multifamily rental units are typically smaller than single- family units. Thus, large families typically suffer disproportionately from both overcrowding and inability to pay. Table 26 reveals tenure of housing units by number of persons in the unit. The table shows that in 1990 there were slightly more renter-occupied large households than owner-occupied. Proportionally, renters were more likely to live in large households, about 8% of all renter households had five or more persons in 1990, compared with about 5% of owners (universe: occupied housing units by tenure, details in Table 28, below). TABLE 28 LARGE HOUSEHOLDS BY TENURE 1990 Number of Persons Owner Renter Total in Unit Occupied Percent ' Occupied Percent Occupied Units Percent Five 276 2.5% 313 4.1% 589 3.2% Six 157 1.4% 164 2.1% 321 1.7% Seven or More 142 1.3% 124 1.6% 266 1.4% Total 5751 5.2% 601 7.8%1 1,1761 6.3% 'Total owner occupied units is 10,963. Percent of all owner-occupied units calculated on this figure. 'Total renter occupied units is 7,659. Percent of renter-occupied units calculated on this figure. 'Total occupied units is 18,622. .Percent of total occupied units calculated on this figure. Source: U.S.Bureau of Census,1990 In 1999, the number of large households is estimated to be 1,292, or 6.7% of the total number of households. This increase may reflect the changing ethnic composition of the City, overcrowding, and overpaying for housing cost. C. Female-headed Households Female-headed households are a special needs group because women leading families have • proportionally lower rates of homeownership, lower incomes and higher poverty rates than other family compositions. There were 1,635 female-headed households in the City, representing about 9% of all Palm Springs households, as reported in the 1990 Census. Of the total number of female householders, The Planning Center Page 33 November 2002 P PCPs-01 uciD,aft H°,,,,,,,y El.....r 1-11-02 A, DRAFT III. Housing Needs 347 were below the federally established poverty level. Of those female-headed households with children under 18 years, 299 were below the poverty level. Table 29 indicates those female-headed households with related children,as determined by the Bureau of Census. TABLE 29 FEMALE HEADS OF HOUSEHOLDS 1990 1990 t Percent of 1999 2 Percent of Household Type Total Total Households Total Total Households Female Householder,No Husband Present 1,635 8.9% 1,484 7.7% Below Poverty Level 347 1.9% N/A N/A With Children Under 18 740 4.0% 825 4.3°% Below Poverty Level 299 1.6% N/A N/A Total Female Headed Households 1 1,6351 8.9%1 1,4841 7.7% Total number of households in the City in 1990 is 18,783. Percent of total households calculated on this figure. z NDS.Total households=19,279 per DOF. Source: U.S.Bureau of Census,1990 According to data estimates prepared by National Decision Systems in 1999,the existence of single female-headed households has decreased to 7.7%of'dhe total households with an additional 3.7% being non-family female-headed households. This translates to approximately 1,484 female-headed family and 713 female-headed non-family households. The proportion of these households with children was not available in 1999 terms. d. Disabled Persons Access and affordability are the two major housing needs of disabled persons. Access is particularly important for the physically disabled. Physically disabled persons often required specially designed dwellings to permit access within the unit, as well as to and from the site. California Administrative Code Title 24 sets forth access and adaptability requirements for the physically handicapped (disabled). These regulations apply to public buildings such as motels,employee housing,factory built housing and privately funded', newly constructed apartment houses containing five or more dwelling units. The regulations also require that ramp ways, larger door widths, restroom modifications, etc., be designed to enable free access to the handicapped. Such standards, however,are not mandatory of new single- family residential construction. The disabled,like the elderly, have special needs with regard to location. There is typically a desire to be located near public facilities, and especially near public transportation facilities that provide service to those who must rely on them. Page 34 Housing Element Update for the City of Palm Springs DRAFT RACPS-or 11-11-02.d. November2002 City of Palm Springs HOUSING ELEMENT UPDA TE • TABLE 30 DISABLED RESIDENTS 1990 CITY OF PALM SPRINGS Persons 16 to 64 Years 23,971 With a Mobility or Self-Care Limitation 969 With a Work Disability 2,041 In Labor Force 825 Prevented from Working 1,092 Persons 65 Years and Over 10,010 With Mobility or Self-Care Limitation 1,638 Source: 1990 Census STF3A Table 30 shows that 2,607, or 6.5% of Palm Springs total population had a mobility or self-care limitation in 1990. The mobility or self-care limitation does not necessarily translate into a need for specially constructed housing units, therefore making it difficult to specifically estimate the number of disabled persons in need of housing. Additionally, 2,041 persons of working age were restricted with a work disability. Of these, 1,092 were prevented from working by their disability. Especially of concern, members of this group are most likely on fixed incomes, relying on federal or state relief. The City of Palm Springs Community Redevelopment Agency is attempting to address the housing needs of the disabled through a home repair program. This program, eligible to the handicapped who meet certain financial criteria, offers$1,500 for emergency and minor repairs to the plumbing, electrical system, replacement of windows and screens, attic fans, exterior paint, limited type of roof repairs, fixtures, replacement of a built-in oven or stove and handicapped aids. Earthquake-stabilizing systems for mobile homes, correction of code violations, weatherization and energy conservation repairs are also offered through the program. e. Nameless Population The Regional Housing Needs Assessment (RHNA) produced by SCAG characterizes the sheltered and non-sheltered homeless as: Persons who are living or staying in emergency shelters or transitional housing; Persons who sleep outside, in makeshift shelter, in cars or transportation areas such as bus or train terminals; Persons who are considered "at risk" (i.e., doubled-up, in marginal circumstances, motel population with limited stay or general relief recipients whose payments have been canceled due to "no forwarding address"). Consistent findings indicate that 3%of any overall population experiences homelessness in a three to five year period and that 7% of any overall population are homeless at some point during their lifetime. Based on the City's estimated population, approximately 257 citizens were homeless as of January 1, 1999 (2000-2004 Consolidated Plan). • While there are no homeless shelters located within the City of Palm Springs, there is one transitional shelter. Transitional housing is defined as temporary housing that limits the duration of the stay to a The Planning Center Page 35 November 2002 r.icrs-m OGW/H�,,,urn„,,,1 r-1 1-02 e,� DRAFT III. Housing Needs fixed period and provides specific and organized services such as job counseling,skill development, etc. The following facilities are located within the Coachella Valley and are available to homeless persons in/from Palm Springs: 14,� ' T� rstmyHnmeless'Pacf1 es,yvttlnrihechelpa e r1x , Shelter from the Storm, Palm Desert Operates' a 60 bed emergency shelter for women and children who are victims of domestic violence Nightengale Manor, Palm Springs Sixteen (16) unit residential apartment complex serves as a transitional shelter Coachella Valley Rescue Mission, Indio Operates,a 30 bed family shelter ABC Recovery Center, Indio Operates a 78 bed facility Riverside Armory, Indio Offers 250 beds for homeless or special needs persons a,ft W7RUP , '��� ,� � s�tf � orpel s grvicesl Catholic Charities, Palm Springs Provides emergency rental assistance,food and/or shelter (40 beds) • F.I.N.D., Inc., Cathedral City Provides'emergency food services to the needy F.I.S.H.of Lower Coachella Valley, Indio Provides food to the needy Martha's Kitchen, Indio Provides hot meals and medical care and/or shelter(120 beds)to an average of 90 homeless persons daily Salvation Army, Cathedral City Provides,food to the needy St. Elizabeth Church, Desert Hot Springs Serves fdod to the needy Well in the Desert, Palm Springs Provides meals, other services to the needy L Farmworkers Historically,the Coachella Valley's economy was linked to agriculture. Changes in the local economy to production and service-oriented sectors have virtually eliminated significant agricultural production within the City limits. Today, Palm Springs is a well-developed desert community with a strong local economy centered around tourism and service activity. Although eastern Riverside County is increasingly capturing major employers in Southern California,this growth is not tied to an agricultural base. In 1990,the Census reported 487 persons in Palm Springs employed in agriculture (or related industries). Though some remains, most land previously used for agricultural activities is currently Page nn36 Housing Element Update for the City of Palm Springs De5r"T P:1CPS-O AGIDrf HomingEhmw]]-]]-02.da November2002 City of Palm Springs HOUSING ELEMENT UPDATE developed or designated for commercial or residential development. As there are limited active agricultural areas in the City,there is no apparent or explicit need for farm worker housing. g. Domestic Violence(Battered Spouses) Battered spouses are defined as persons who exist in an abusive relationship and require special consideration and assistance when they remove themselves from this environment. Shelter from the storm operates an emergency shelter for battered women and their children in Palm Desert. h. HIV(AIDS The number of persons diagnosed with HIV/AIDS related illnesses in the eastern region of Riverside County was 2,627 in 2000. Of this population, 1,178 persons reside within the City.This is approximately 44.8%of the total number of AIDS patients in this portion of the County. Desert Aids project, in Palm Springs, provides medical services for HIV/AIDS patients.As well,the AIDS Assistance program provides food vouchers. TABLE 31 SUMMARY OF EXISTING HOUSING NEEDS PALM SPRINGS Overpaying Nouseholds2 Special Needs Group(1990) Renter 3,937 Elderly Households 10,529 Less than 30%MFI 1,112 Disabled Persons 2,607 30 to 50%MFI 1,228 Large Households 1,176 50 to 80%°MFI 1,143 Female Headed Households 1,635 80 to 95%MFI 201 Female Headed Households with Children 845 Greater than 95%MFI 253 Farmwodcers 487 Owner 3,739 Homeless 2571 Less than 30°%MFI 653 30 to 50%MFI 680 - 50 to 80%MFI 934 80 to 95%MFI 349 Greater than 95%MFI 1,122 Total 7,676 Overcrowdinga Unit in Need of Repair' Renter 908 Owner 386 Total 1,294 Total In Need Of Repair 3,159 1 Based on 1999 estimate. R Based on 1999 SLAG RHNA estimates. 'Based on Califomia Statewide Housing Plan.Includes single family and muld-family units. Source: 1994-1998 City of Palm Springs CHAS;2000 City of Palm Springs Consolidated Plan;and 1990 U.S. Census B. GROWTH NEEDS In addition to the social and economic needs of its citizens,the City must also respond to the physical and geographical growth needs that result from population and economic expansion. The regulatory i The Planning Center Page 37 November 2002 P:ICPS-01.0GID,a/r xo...m8 ak,,,°m 11-11-02.ea DRAFT III. Housing Needs mechanism that guides a jurisdiction in purposeful, balanced growth is the Regional Housing Needs Assessment (RHNA), which is produced by the Southern California Council of Governments (SCAG). 1. Overview of the SCAG Regional Housing Needs Assessment California's Housing Element law requires that each city and county develop local housing programs designed to meet its "fair share" of existing and future'housing needs for all income groups. This effort is coordinated by the jurisdiction's Council of Governments—Palm Springs' is the Coachella Valley Association of Governments (CVAG)—when preparing the state-mandated Housing Element of its General Plan. This "fair share" allocation concept seeks to ensure that each jurisdiction accepts responsibility for the housing needs of not only its resident population, but for all households who might reasonably be expected to reside within the jurisdiction, particularly lower income households. This assumes the availability of a variety and choice of housing accommodations appropriate to their needs, as well as a certain mobility among households within,the regional market. 2. The 1998-2005 Palm Springs Fair Share Estimate The fair share allocation process begins with the State Department of Finance's projection of Statewide housing demand for a five-year period, which is then apportioned by the State Department of Housing and Community Development (HCD) among each of the State's official regions. The regions are represented by an agency typically termed a Council of Government (COG). In the six county Southern California region, which includes Palm Springs and all,other incorporated cities and unincorporated areas of Riverside County, the agency responsible for',assigning these fair share targets to each jurisdiction is the Southern California Association of Governments (SCAG). In this RHNA Cycle, SCAG delegated the responsibility to assign regional shares!among its member jurisdictions, including CVAG. A local jurisdiction's "fair share" of regional housing need is the number of additional dwelling units that will need to be constructed during a given seven-year)planning period. SCAG estimates each jurisdiction's future housing need in terms of four factors: The number of units needed to accommodate forecasted household growth; The number of units needed to replace demolitions due to attrition in the housing stock (i.e., fire damage, obsolescence, redevelopment and conversions to non-housing uses); Maintaining an ideal vacancy rate for a well-functioning housing market; and An adjustment to avoid an over-concentration of lower-income households in any one jurisdiction. HCD recommends a flat rate factor of 0.2%for replacement of units that may be demolished, converted to non-residential uses, or lost from the housing stock through other actions. The ideal vacancy rates are 3%-5% as mentioned previously (SCAG, 1998). Avoiding over-impaction was accomplished in 1998 by moving each jurisdiction's fair share allocation 250/. of the way toward the regional average proportion of lower income households, with the ultimate goal of achieving a regional "zero sum" of housing distribution across income levels. The new construction need must be allocated to four;�household income categories used in Federal and State programs: Very Low; Low; Moderate; and Above Moderate Income, defined operationally as . households earning up to 50%, 80%, 120% and more than 120% of the Riverside County median income, respectively. The allocations are further adjusted to avoid an over-concentration of lower Page 38 Housing Element Update for the Cay of Palm Springs DRAFT e WP5 01 0aD„f Hmm",,El..",r r-)I-02 eo, November 2002 City of Palm Springs HOUSING ELEMENT UPDATE income households in any one jurisdiction. The fair share allocation must also consider the existing "deficit" of housing resulting from lower income households that pay more than 30% of their incomes for housing costs. As discussed earlier,this is the threshold used by the Federal government to determine housing affordability. The 1998-2005 Regional Housing Needs Allocation for the City of Palm Springs is: Table 32 Palm Springs Fair Share Housing Needs 1998—2005' Total Adjusted Need' Very Low(17°l0) Low(12%) I Moderate(2001) Above Moderate(5001) 1,502 383 260 1 289 570 Annual Need: 200 1 The 7'/2 year planning period is January 1,1998 to June 30,2005 Source: Regional Housing Needs Assessment,SLAG 1999 Thus, Palm Springs' "fair share" allocation is 1,502 units. This Housing Element will describe policies and programs that the City can utilize towards implementing this housing need allocation. • • The Planning Center Page 39 November 2002 r iCvs-ni 0ei0/t H� ,,b ue,,,ew 1 r-11-02 doe DRAFT III. Housing Needs This page intentionally left blank. • Page 40 Housing Element Update for the City of Palm Springs DRAFT NCPS-m oMo,/H,,,,,,,,x err,;, ,Id_r r_02 d,, November 2002 City of Palm Springs HOUSING ELEMENT UPDATE IV. HOUSING CO NSTRAINTS AND RESOURCES A. CONSTRAINTS This section of the Housing Element examines the constraints that could hinder the City's achievement of its objectives and the resources that are available to assist in the production, maintenance and improvement of the City's housing stock. 1. Governmental Constraints Governmental constraints are policies, development regulations, standards, requirements or other actions imposed by the various levels of government upon land and housing ownership and development. In the City of Palm Springs, local land use decisions are not only controlled by the City, but also by various State and Federal agencies.Among the constraints enacted by the Federal and State government are the determination of interest rates, endangered species, protected lands and State Building Codes. Local land use controls consist mainly of zoning regulation building codes, processing procedures, and development fees. Additionally, under State law, every city must have a General Plan establishing policy guidelines for all development within the City. The General Plan is the foundation of all land use controls in a jurisdiction. The Land Use Element identifies the location, distribution and density of land uses in the City. In implementing the General Plan,the City utilizes a number of planning tools including the Specific Plan, Zoning Regulations, and Planned Development Districts,which must all be consistent with the General Plan. a. Land Use Controls General Plan Every City must have a General Plan,a document establishing policy guidelines for all development within the City. The General Plan is the foundation of all land use controls in a jurisdiction. The Land Use Element identifies the location, distribution and density of land uses in the City. In implementing the General Plan,the City of Palm Springs utilizes a number of planning tools including the Specific Plan, Zoning Regulations, and Subdivision Ordinance. With these documents,the City establishes more specific development standards, allowable uses, and limitations. The Palm Springs General Plan provides for 12 residential land use designations in the City. General Plan residential densities are expressed as dwelling units per acre (du/ac). Table 33 illustrates General Plan residential land use categories. The Planning Center Page 41 November 2002 P:�CPS-01.0c)o,,ft H..sm,Elvmr 11-11-02.4, DRAFT IV. Housing Constraints and Resources TABLE 33 PALM SPRINGS GENERAL PLAN RESIDENTIAL LAND USE CATEGORIES CITY OF PALM SPRINGS Designation Description Max Density Range' R-0.2/0.4 The Rural Residential Designations of 13-0.;2 [providing for the 0.2—0.4 du/ac Rural Residential development of a maximum of one (1)dwelling per five (5)acres] and R 0.4[providing for the development of a maximum of one (1)dwelling per two-and-one-half(2Yz) acres] accommodates various types of very low-density residential development,including large ranch and estate lots,guest ranches and resorts,residential:,equestrian uses,and traditional single-family homes. L-1/2 Very Low- Provides for the development of a maximum two(2)dwelling units per Density Residential acre to accommodate various types of law-density residential development,including large estate lots and traditional single-family homes. L-4 Low-Density The L-4 Low-Density Residential designation provides for the 3—4 du/ac Residential development of three to a maximum of four residential dwelling units per acre,and accommodates various types ofl,low-density residential development,including traditional single-family homes. 1-6 Low-Density The L-6 Low-Density Residential designation provides far the 4—6 du/ac Residential development of three to a maximum of four residential dwelling units per • acre,and accommodates various types of low-density residential development,including traditional single-family homes. M-8 Medium- Provides forthe development of six(6)to eight(8) units per acre. 6—8 du/ac Density Residential Appropriate residential development under this designation includes traditional single-family homes and garden apartments M-15 Medium Provides for the development of twelve (12)to fifteen (15) units per 12—15 du/ac Density Residential acre. Appropriate residential development,under this designation includes traditional single-family homes and garden apartments. H-30 Medium Provides for the residential development of twenty-one (21)to thirty 21 —30 du/ac High-Density (30)dwelling units per acre. Appropriate residential development under this designation includes multiple-family apartments and similar permanent and resort housing. H-43/21 High The H-43/21 designation allows for the development of fifteen(15)to 30—43(861)A Density twenty-one(21)dwelling units per acre for multiple-family apartments 15.21 du/ac B and similar permanent housing. Hotels and similar types of resort housing are allowed in both designations with a threshold of 30 and a maximum density of 43 dwelling units per,acre. Mixed-use residential/commercial developments in conjunction with adjacent commercial properties may be considered. H-43/30 High The H-43/30 designation allows for the development of twenty-one(21) 30—43 (861)A Density to thirty(30) dwelling units per acre for multiple-family apartments and 21 —30 du/ac B similar permanent housing. Hotels and similar types of resort housing are allowed in both designations with a threshold of 30 and a maximum density of 43 dwelling units per acre. Mixed-use residential/commercial developments in conjunction with adjacent commercial properties may be considered. • Page 42 Housing Element Update for the City of Palm Springs DRAFT P-PCPs-m ocD,f,Ho, ,,,e ue,: 1-H_02,m, November 2002 City of Palm Springs HOUSING ELEMENT UPDA TE S TABLE 33 PALM SPRINGS GENERAL PLAN RESIDENTIAL LAND USE CATEGORIES CITY OF PALM SPRINGS Designation Description Max Density Range' CDL-6 Controlled The CDL-6 designation provides for the development of a threshold of 3—6 du/ac Low-Density three (3)and a maximum of six(6)dwelling units per acre to accommodate the development of various types of affordable housing, including traditional single-family homes and multiple-family structures. Development not qualifying as affordable housing shall be limited to four (4)dwelling units per acre. CDL-8 Controlled The CDL-6 designation provides for the development of a threshold of 3—8 du/ac Low-Density three (3)and a maximum of eight(8) dwelling units per acre to accommodate the development of various types of affordable housing, including traditional single-family homes and multiple-family structures. Development not qualifying as affordable housing shall be limited to four 4)dwelling units per acre. LSR Large Scale 10—30 du/ac Resort NOTES: A=Hotel Density B=Multi-Family Dwelling Density I=Indian Land 'Density range expressed in dwelling units per gross acre(cattle). Source: City of Palm Springs General Plan,1993. To allow the option of an economy based on visitor appeal, standards of residential development (and all other development) must be kept at a high level and continually refined and upgraded. The character of residential development in all density categories and lifestyles has continued to lure those seeking to live or to visit Palm Springs. The main elements of this character, are established through preference and reflected in zoning regulations, set requirements for minimum amounts of open space and recreation area, and protection from encroachment of low quality development and incompatible uses. The Plan provides for residential densities ranging from one dwelling unit per 5 acres to 86 (potentially doubled on Indian land) hotel units per acre. The majority of the City's urban area has been designated for"Low-Density Residential' at four dwelling units per acre or less. However, due to density allowances in the central core, the number of residents living in attached units about equals the number living in detached units. In addition to the land use designations, the Land Use Map delineates several areas for Area Plan Overlays. This designation overlays the base designations and is established in order to direct additional research prior to development of a property or a related group of properties. Reasons for the Area Plan Overlay may include sensitive environmental conditions, infrastructure and service delivery constraints, the prospect for development of a resort destination facility, or as a means to ensure timely development of the area in a planned manner to avoid leap frog development patterns in the City. Within an Area Plan, the underlying land use is established as a baseline for environmental analysis and may be modified subsequent to the detailed planning required for the area. The Area Plan may be implemented either through the adoption of a Specific Plan or use of Planned Development District zoning. Where the Area Plan necessitates a General Plan Amendment, a Specific Plan is required. The Planning Center Page 43 November 2002 P iCPs-m 06rW.l r ,,,g Ekv,,m,1 r-1 i-02 dor DRAFT IV. Housing Constraints and Resources a The City requires that potential developable areas of 300 acres or more are subject to tier approval of an Area Plan.The 1993 General Plan identifies five such areas as follows: Canyon Park:A Specific Plan (SP-1) has been approved for the 746 acre Canyon Park Resort and Spa destination resort located at the southwestern end of the City. Chino Cone: This area is envisioned for high-end residential,large-scale destination resort and commercial recreation. No Specific Plan has been prepared at this time. Palm Hills:The 34 square mile area was annexed in 1970.A study was conducted in 1974 that illustrated the most intense land use activity that can be conducted. A minimum of four specific plans, each corresponding to a sub-area established by the study, will be required prior to development. The study established a maximum unit capacity of 5,000 units, inclusive of hotels. As there currently are major access constraints to this area, it is not anticipated that development will occur in the near future. Snow Creek:This area is located in the City's Sphere of Influence, and is envisioned as a low density resort community. No specific plan has been prepared to date. Palm Springs Classic:This area plan is envisioned as mixed commercial/resort/business and did not provide significant potential for residential units.The current developer is evaluating the feasibility of converting some of the proposed IMOU designations to residential. Density is a critical factor in the development of affordable housing. In theory, maintaining the low densities typically increases the cost of construction per unit while higher density lowers the per unit cost of land and facilitates efficient construction. In addition to the potential for density bonus provisions, more intense residential development is achieved through a variety of mechanisms.These include clustering of residential development,zero lot line and/or patio homes,and small lot development, subject to the provisions of the Zoning Code. Clustering of housing can produce higher densities on a portion of land while retaining the overall density assignment of the entire property. This method is effective when portions of the property not utilized for 'residential development can be developed with compatible use, such as open space/recreation, parks, schools, public facilities and support commercial. In the case of mixed-use, residential uses may be clustered with commercial, retail, hotel and resort, or on the second story above ground floor commercial.The City's PD district zoning, as well as the use of the specific plan to implement large tract developments accommodates the clustering concept and a variety of housing types, allowing for higher density uses within areas where the overall gross density typically would not accommodate housing products which may be affordable to low and moderate income households. Affordability can be determined by permitted density of development.The State Housing and Community Development Department has established the following affordability standards based on density: Very low income-minimum 25 units per acre) Low income-minimum 18 units per acre Moderate income-minimum 8 units per acre The availability of developable acreage in upper density ranges allows for development of certain types of housing that might be affordable to very low and loW income households.The H-30 Medium High, • Page 44 Housing Element Update for the City of Palm Springs DRAFT AgCPS-OI.OMDr/r ao„r='s cio,;a„t 11a1 a2.mk November 2002 City of Palm Springs HOUSING ELEMENT UPDA TE H43/21 High and H43/30 High Density designations provide for such densities. In addition, development at the upper end of the M-15 designation density range may accommodate low and moderate income households. As well, the City has established two land use designations, the CDL-6 and CDL-8 Controlled Low Density designations, which provide for the development of a threshold of 3-6 and 3-8 dus/ac to accommodate a variety of various types of affordable housing, including both single family and multi-family structures. Development not qualifying as affordable is limited to four (4) dus/ac. The land use designations in the City accommodate a wide range of housing development and are not considered to be a constraint to the provision of housing affordable to lower income households. In response to market conditions, however, some of the higher density uses in the City, aside from hotels, have been for residential condominium or resort products, often in or near a golf course community, which are offered at rents or purchase prices which are above the financial capability of lower income households. As well, the City wishes to avoid an over-concentration of high density products north of Vista Chino Road, where land prices of available vacant parcels are typically lower than in the central and southern portions of the City. Under this policy, if affordability to lower income households is to be achieved through new development in the southern portions of the City, increased levels of subsidy will be required. The City of Palm Springs is in the advantageous position of being able to undertake assistance programs through the Community Redevelopment Department's Set-Aside Fund, as well as other state and federal resources. While new affordable units can be provided through a variety of strategies, the best source of affordable housing is found in the City's older neighborhoods, particularly the stock of existing single-family units. Existing housing in these areas constitutes an important and on-going housing resource that does not need to be subsidized by government, although assistance for rehabilitation may be required to maintain this stock in quality condition. Therefore, in many cases these neighborhoods are more cost efficient than new construction as a resource for low and moderate income housing, and provide ownership opportunities as well. Zoning Code Zoning regulations serve as a key General Plan implementation tool. The City's Zoning Code accommodates a diversity of residential housing types. It allows for innovation in design standards within parameters designated on Table 34, provided the overall density and dwelling unit capacity is not exceeded. The Palm Springs Zoning Code provides for 13 residential zones, with densities ranging from one dwelling unit per five acres to 30 dwelling units per acre for multi-family, with potential for up to 43 hotel units (86 hotel units on Indian land), as listed below: G-R-5 Guest Ranch Zone R-1-AH Single-Family Residential Zone (20,000 square feet) R-1-A Single-Family Residential Zone (20,000 square feet) R-1-13 Single-Family Residential Zone (15,000 square feet) R-1-C Single-Family Residential Zone (10,000 square feet) R-1-D Single-Family Residential Zone (7,000 square feet) R-G-A (6) Cluster Residential Zone R-G-A (8) Garden Apartment Multiple-Family Residential Zone R-2 Limited Multiple-Family Residential Zone R-3 Multiple-Family Residential and Hotel Zone R-4 Large Scale Hotel and Multiple-Family Residential Zone The Planning Center Page 45 November 2002 Paces-m.ocio.fi m,,,,,,x erz,,,w n-a-oz,m1 DRAFT IV. Housing Constraints and Resources R-4-VP Vehicle Parking and Large Scale Hotel and Multiple Family Residential and Limited Commercial Retail Zone R-MHP Residential Mobile Home Park Zone Zoning, which must be consistent with the General Plan, establishes more specific development standards, allowable uses, and limitations than more general land use categories. Zoning regulations control development by establishing requirements related to height, density, lot area, yard setbacks, and minimum parking spaces. Site development standards are comparable to other community requirements and ensure a quality living environment for all household groups in the City, including special needs groups, and lower and moderate income households. Governmental development standards, either modified or as part of administrative policies, may add to the cost of housing because standards may necessitate additional construction and building materials and labor. These standards are enacted for the protection of the community's health, safety, and welfare. A modification or waiver of development standards can reduce the cost of housing construction, which may, in turn, result in lower housing prices. However, a: modification of certain development standards may result in a reduced level of quality, which the comunity may not consider to be in its best interest. Design standards such as roofing materials, architectural enhancements and landscaping also increase the costs of housing. The City's perspective is that affordable housing projects should meet the same fundamental design standards as other residential projects. As a result, subsidies to provide required design features, or waiver of development standards that don't affect the aesthetic design attributes, may be required. . The Zoning Code establishes a Planned Development district that is intended to be used to: Foster and encourage innovative design,variety and flexibility in land use types which otherwise would not be allowed in other zoning districts; Provide a greater diversity in housing choices; Planned Residential Development districts may include a multiplicity of housing types provided the density does not exceed the General Plan requirements. Density under the PD district is as allowed by the zoning district and the General Plan. Housing density may be increased in conformance with State and local regulations if the district assists the City in meeting its housing goals as set forth in the Housing Element. The form and type of development on the P'D site boundary is required to be compatible with the existing or planned development of the surrounding neighborhoods. A PD may be approved for a commercial property if the property is to be used for an extension of buildings proposed in the existing commercial zone or in combination with residential uses. Where this is permitted, the plan for the total property shall be submitted and engineering/architectural details submitted which clearly illustrate how the property will be developed and how compatibility with adjacent uses will be achieved. The City typically utilizes the PD district zoning as the!mechanism for fostering flexibility in design. The use of specific plans has not been widespread in the City: to date, only one specific plan has been adopted. The Palm Hills Area Plan requires that a specific plan be prepared to correlate with sub-areas established in the General Plan. There is potential for limited residential uses in the Central Business District (CBD) district, which permits • conversion of existing upper story floor area to apartments (full kitchen and bathroom facilities are required) subject to a Land Use Permit requiring Planning Commission approval. Residential uses are Page 46 Housing Element Update for the City of Palm Springs DRAFT P iCPsw oc�o�/,e�„,,,,,Y ekvI,,,11-17-02 e,, November 2002 City of Palm Springs HOUSING ELEMENT UPDA TE i subject to open space requirements equivalent to 45% of the net lot area, inclusive of balconies, terraces, roof decks and similar features. Multi-family dwellings, subject to the standards established for the R-3 zone, are permitted by right in the C-1 - Retail Business Zone. Multi-family dwellings, subject to the standards established for the R-4 zone, which includes the provision for high-rise structures, are permitted by right in the C-1 AA- Large Scale Retail Commercial Zone. Residential uses, subject to the standards of the R-3 zone, are also permitted in the CC-Civic Center Zone, subject to a Conditional Use Permit. The City also utilizes a Resort Overlay Zone that provides for visitor accommodations and services for these visitors while guarding against the intrusion of competing land uses. Under this zone, uses shall be as provided in the underlying zone, except that: 1) All multi-family dwellings shall be permitted only by Conditional Use Permit (CUP); 2) The conversion of existing hotels with 29 rooms or less to multi-family dwellings shall not require the approval of a CUP provided the number of parking spaces conforms to the requirements of Section 9306.00D.29 and all other requirements are met. The City also accommodates transitional housing. A 16 unit transitional housing complex, Nightengale Manor, is provided in the City by the Riverside County Housing Authority. Although the code accommodates such uses, zoning regulations that specifically call out that transitional housing and emergency shelters are allowed within selected zones is currently not incorporated into the Zoning Code. Transitional housing is defined as temporary housing that may be wholly or partially subsidized by operators of the facility. Hotels that accommodate kitchen facilities are permitted in the R-2, R-3, R-4, R-4VP, and CBD zones, although they are limited to not more than 10% of the units within an individual hotel facility. Hotel facilities that allow kitchens in more than 10% of the guest rooms are permitted subject to a CUP. Under the Resort Overlay Zone, existing hotels with less than 29 rooms may be • converted to a multi-family use (such as an SRO) without a CUP. As well, in response to state mandated requirements and local needs, the City has adopted ordinances and regulatory mechanisms allowing for the development of accessory rental units in selected single family residential areas, utilizing modular homes on permanent foundations, and density bonus provisions. While the intent of these land use controls has been to provide affordable housing, the ordinances do not specifically regulate or address the issue of qualifications for affordability, nor the continuation of affordability once created as such, with the exception of density bonuses. The monitoring of affordability resulting from such ordinance provisions has been programmed into the Redevelopment Agency and Planning Department administrative functions. The Planning Center Page 47 November 2002 P irns+u oao,f El..n,i I-J t-o2 DRAFT IV. Housing Constraints and Resources This page intentionally left blank. • Page 48 Housing Element Update for the City of Palm Springs DRAFT r�CrS-oi.oc�o,«/,H. ....V.....,„11-11-02 Al November 2002 i City of Palm Springs HOUSING ELEMENT UPDA TE TABLE 34 SUMMARY OF ZONING RESIDENTIAL REGULATIONS Required Yards Minimum Lot Zone Permitted Uses* Area Front Interior Side Rear Building Height Permanent single-family dwellings,accessory 5 acres (gross) 50 feet 50 feet 50 feet G-R-5 buildings,keeping of horses, public parking areas, Not greater thanl5 feet, not to governmental facilities,home occupations, additional exceed one (1) story uses permitted by conditional use permit Not greater than 12 feet, not Permanent single-family dwellings,accessory to exceed one (1) story at the buildings,home occupations,small daycare,horses minimum setback. Height R-1-AH permitted in R-1-AH,manufactured housing on 20,000 sq.ft. 25 feet' 10 feet' 15 feet' increase may be allowed permanent foundations,and other uses permitted by along a plane that has a slope land use and/or conditional use permit of 4:12, until a height of 18 feet. Permanent single-family dwellings, accessory buildings, home occupations, small daycare, horses R-1-A permitted in R-1-AH, manufactured housing on 20,000 sq.ft. 25 feet' 10 feet' 15 feet' Same as R-1-AH permanent foundations,and other uses permitted by land use and/or conditional use permit Permanent single-family dwellings,accessory buildings, home occupations, small daycare, horses R-1-8 permitted in R-1-AH,manufactured housing on 15,000 sq ft 25 feet' 10 feet' 15 feet' Same as R-1-AH permanent foundations,and other uses permitted by land use and/or conditional use permit Permanent single-family dwellings,accessory 10,000 sq.ft./ buildings, home occupations,small daycare, horses 12,500 sq.ft. R-1-C permitted in R-1-AH,manufactured housing on (fairway lots 25 feet 10 feet 15 feet Same as R-1-AH permanent foundations,and other uses permitted by only) land use and/or conditional use permit Permanent single-family dwellings,accessory buildings,home occupations,small daycare,horses R-1-D permitted in R-1-AH, manufactured housing on 7,500 sq.ft. 25 feet' 7.5 feet' 15 feeP Same as R-1-AH permanent foundations, and other uses permitted by and use and/or conditional use permit The P �Planning Center Page 499 November 11, 200 P ICPS-OLOGIO�(Hnrnng E(mam 1411-ULda DRAFT IV. Housing Constraints and Resources TABLE 34 SUMMARY OF ZONING RESIDENTIAL REGULATIONS Required Yards Minimum Lot Zane Permitted Uses* Area Front Interior Side Rear Building Height gross acres Not less than 10%of the width of the Single-family dwellings, multiple-family dwellings, 2 g lot,not less than 10 and not more than (7,000 sq.ft. Not to exceed 15 feet, except R-G-A 6 accessary buildings,public parking areas, home 25 feet 20 feet. Corner lots:street frontage of 20 feet occupations per dwelling not less than 20%of the lot, not less as otherwise provided unit) than 20 feet and no more than 25 feet 2 gross acres Not less than 10%of the width of the Single-family dwellings, multiple-family dwellings, (5000 s lot,not less than 10 and not more than , q. t. R-G-A 8 accessory buildings, public parking areas,home 25 feet 20 feet. Corner lots;street frontage of 20 feet Same as R-G-A 6 occupations per dwelling not less than 20%of the lot,not less unit) than 20 feet and no more than 25 feet 20,000 sq.ft. (50%of site ---- --Permanentsingle-family_dwellings,multiple-family- area set-aside R-2 dwellings,hotels,accessory buildings, for open space/ 25 feet 10 feet, 20 corner 10 feet Not greater than 24 feet, not--- video/amusement machines, home occupations. outdoor living & to exceed two (2) stories recreation; 3,000 sq.ft.per dwelling unit) 20,000 sq.ft. (45%of site area set-aside Multiple familydwellings,hotels, for open space/ R-3 p g accessory outdoor living& 25 feet 10 feet,20 corner 10 feet Not greater than 24 feet,not buildings,home occupations. recreation; to exceed two (2) stories2 2,000 sq.ft per multi-family dwelling unit 2 gross acres Not less than 10%of the width of the Hotels,resort hotels, multiple-family dwellings, lot, not less than 10 and not more than (1,500 sq.ft net R-4 private accessory clubs,accessory buildings,paio per multi-family 30 feet 20 feet. Corner side frontage of not less 20 feet Not greater than 30 feet-- video/amusement machines, home occupations. dwelling unit) than 20%of the lot, not less than 20 feet and no more than 30 feet Page 50 Housing Element Update for the City of Pall Springs DRAFT* P:\CPS-01XG1DrJH,.,Elm,w11-11-02.• Novembe* 2002 City of Palm Springs HOUSING ELEMENT UPDATE TABLE 34 SUMMARY OF ZONING RESIDENTIAL REGULATIONS Required Yards Minimum Lot Zone Permitted Uses* Area Front Inferior Side Rear Building Height 2 gross acres Not less than 10%of the width of the Same uses as"R-4," also including off-street parking (1,500 sq.ft net lot, not less than 10 and not more than R-4-VP and limited commercial uses per multi-family 30 feet 20 feet. Corner side frontage of not less 20 feet Not greater than 30 feet dwelling unit) than 20%of the lot, not less than 20 feet and no more than 30 feet Residential mobile homes, dwelling for owner and 15 feet 40 feet setback from all R-MHP manager, social and recreation centers,multi-family 5000 sq.ft. from public 15 feet from all other property lines other Not greater than 24 feet,not , dwellings, accessory uses, car wash area,home rights-of-way property o exceed two (2) stories occupations lines 'Assumes Local/Collector Street s High-rise structures to 69 feet in height permitted by CUP/POD Source:City of Palm Springs Zoning Ordinance 1988 The Planning Center Page 51 November 17, 2002 P ICPS-oz ocio„fi U., u-z DRAFT IV. Housing Constraints and Resources Parking Requirements Parking regulations are intended to create properly designed and integrated off-street parking areas, with adequate capacity, circulation, and landscaping organized aesthetically to positively relate to the use or building being serviced. The zoning code provides for joint use of off-street parking facilities, in which uses that operate at hours not coincident with adjacent uses may be given credit for the use of those spaces under certain conditions. In the case of mixed-uses, the code requires that the total number of spaces shall be the sum of the requirements for the various uses computed separately. However, parking requirements associated with the conversion of upper floors of commercial uses in the CBD to residential are subject to Planning Commission review and determination, and may not be required to meet the standard established for mixed use projects. Residential off-street parking requirements are summarized below in Table 35. Parking requirements in Palm Springs are not believed to be a constraint to the development of affordable housing. TABLE 35 RESIDENTIAL PARKING REQUIREMENTS Type of Residential Development Required Parking Spaces Comments Spaces must be within a garage or carport attached to the main Single Family Residential 2 spaces per dwelling unit building, except R-1AH and R- 1-A Zones and hillside areas, which may have detached garages Same requirements as�condominiums Apartments (below),for primary and guest parking, except that covered or�,enclosed spaces are optional. ' Rooming, boarding and fraternity 1 space for each sleeping room, or 1 houses space for each two beds,whichever fields the greater number Condominiums or residences In addition to primary parking within a Planned Development required, 1 designated parking District(PD) space for each 4 units shall be Studio and efficiency units 1 primary space provided for guest parking. Two-bedroom 1 Y:primary spaces One (1) covered space shall be provided for each unit. Trellises Three or more bedroom '/primary space per bedroom providing 70% shade may be used. This requirement shall not apply to existing lots of record that are substandard in area or dimension requirement _ as established elsewhere in the Zoninq Ordinance. Mobile Home Parks shall provide guest parking at a rate Mobile Home Parks 2 spaces per mobile site of 1 space for each 7 units, unless guest parking can be provided on a private street. Source: City of Palm Springs Zoning Code . Page 52 Housing Element Update for the City of Palm Springs DRAFT" r.icvs-01 o�o,aft1h.,,,e Eh-!„ 11-11-02 November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE Multiple Species Habitat Conservation Plan and Natural Communities Conservation Plan The Coachella Valley Association of Governments (CVAG), in cooperation and coordination with the California Department of Fish and Game, the US Fish and Wildlife Service and the US Bureau of Land Management, is in the process of preparing a Comprehensive Multiple Species Habitat Conservation Plan (MSHCP)/Natural Communities Conservation Plan (NCCP)for an area encompassing approximately 1.20 million acres located in the Coachella Valley of Riverside County. The MSHCP/NCCP proposes to establish a regional plan for the preservation of sensitive and endangered plant and wildlife species and unique and otherwise important natural communities. The MSHCP/NCCP could place thousands of acres of land in Palm Springs into permanent reserve. Land placed into reserve under the MSHCP/NCCP would be unavailable for development and,therefore, potentially decrease the long-term housing development potential for Palm Springs. State and Federal Regulations The State and Federal governments own considerable quantities of land throughout Riverside County. Other large portions of land are regulated through regulations such as the state and federal versions of the Endangered Species Act. The Federal Government in Riverside County alone owns 1.67 million acres of land. There are six major natural fauna communities protected within the Coachella Valley Preserve System. These include the Sonoran Desert Dunes, Mesquite Hummocks, Sonoran Cresote Bush Scrub, Desert Saltbrush Scrub, Dester Fan Palm Oasis and Sonoran Cottonwood. Among notable species residing in these communities are the Palm Springs Ground Squirrel, which lives mainly in the Mesquite Hummocks and Creosote Bush Scrub, and the Palm Springs Pocket Mouse, which can be found in Inactive Dune Hummocks and sandy soils within Creosote Bush Scrub. Among the flora, the Cuyamaca Meadowfoam and the Dehesa Nolina Bear Grass are on the State Endangered list and the California Orcutt Grass is on both the Federal and State Endangered lists. There are several other plant species located within Riverside County that the Federal Bureau of Land Management classifies as sensitive species that are designated by the BLM State Director for special management consideration. b. Density Bonus In response to State mandated requirements and local needs, the City has adopted ordinances/ regulatory mechanisms that permit higher densities than generally permitted. Known as a "density bonus,"this mechanism is a valuable tool for jurisdictions to create more affordable housing for seniors and lower income families. State law allows a developer to increase the density of a residential development by at least 25% over the otherwise maximum allowable residential density if provisions are made to allocate: 20% of the units for lower income households, 10%for very low income households, or 50% of the total dwelling units of a housing development for qualifying residents (qualified to receive federal housing assistance, such as Section 8). As well, one additional incentive or financial equivalent (such as modified development standard or waiver/reduction for application or development fees) is granted by the City to all residential development meeting the 20% density bonus requirement for lower income housing. The City of Palm Springs complies with the Density Bonus provisions required by State law (Chapter 4.3, Section 65915) The Planning Center Page 53 November 11, 2002 v iCM 01 oqD,/ er.,,,.w 1/-1 i-oa,k DRAFT IV. Housing Constraints and Resources for residential zones,when requested by the project applicant. The density bonus shall apply to housing developments consisting of five or more dwelling units. C. Accessory Units In response to state mandated requirements and local',needs,the City of Palm Springs allows for the development of an accessory unit in association with the primary residential unit,or"granny flat," traditionally intended for elderly or other members of owner-occupant families.The City allows for Accessory Apartment Housing,subject to a Conditional Use Permit(CUP) and the provisions of Section 9318.00 of the Zoning Code.The first type may not exceed a lot coverage of more than 1/50' of the lot, and does not allow for cooking facilities. The Accessory Apartment Housing is defined as an efficiency dwelling unit as defined in the Uniform Building Code (UBC) incorporated within the living area of a primary single family residence on a parcel in a designated zoning district. It is required to include!permanent provisions for living, sleeping, eating, cooking and sanitation.The following conditions are established for Accessory Apartment units: Accessory Apartment Housing is permitted,subject to a CUP, in the G-R-5, R-1-AH, R-1-A, R-1-B, R-1-C, R-1-D, R-G-A(6), R-G-A(8), and R-2 zones. Accessory Apartment Housing is prohibited in PD zones unless authorized in the originally approved plans. The Accessory Apartment unit shall be attached to the permanent dwelling. • The Accessory Apartment shall contain no more than 15%of the living area of the primary dwelling and shall not exceed 640 square feet. The Accessory Apartment shall be under the same ownership as the primary residence, and reserved for occupancy by not more than 2 persons. Any new construction associated with an Accessory Apartment shall comply with all setbacks, coverage, height and design standards of the'zoning district and shall not affect the overall appearance of the primary dwelling a s a single family residence. The Accessory Apartment shall have adequate sewer and water services, not adversely impact traffic flow, and be serviced through the same utility meters as the primary unit. No more than one Accessory Apartment shall!be allowed on a parcel. This example of compact, infill development may be a crucial strategy for meeting the growing housing demands in Riverside County and Palm Springs as vacant land diminishes. d. Building Codes and Enforcement Building Codes While building and safety codes are adopted for the purposes of preserving public health and safety, and ensuring the construction of safe and decent housing,they have the potential to increase the cost of housing construction and/or maintenance. The City of Palm Springs'building codes are based on regulations necessary to protect the public health, safety and welfare of its residents. The City has Page 54 Housing Element Update for the City of Palm Springs DRAFT RJUS-01.0PD,.f,HonnngEh 111-11-02.✓o, November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE adopted the 1997 editions of the Uniform Building, Plumbing and Mechanical Codes and 1996 edition of the National Electrical Code,which together establish construction standards for all residential buildings. Residential code enforcement in the City is performed on a complaint basis unless a Community Preservation Officer notices a blatant violation from the street. Americans with Disabilities Act The City's building codes require that new residential construction comply with the Federal Americans with Disabilities Act(ADA). ADA provisions include requirements for a minimum percentage of units in new developments to be fully accessible to the physically disabled. Unlike the Uniform Building Code (UBC), enforcement of ADA requirements is not at the discretion of the City, but is mandated under federal law. e. Development Fees Various fees and assessments are charged by the City and other agencies to cover the cost of processing development permits and providing local services. These fees help ensure quality development and the provision of adequate public services. However, development fees are passed on to renters and homeowners in the pricefrent of housing, and thus affect housing affordability.The City's Planning and Building Department Development Fee Schedules are detailed in Appendix A,Tables A-1 and A-2. City fees are generally comparable to other local jurisdictions and are not considered to be a major constraint to the development of affordable or market rate housing, although they do contribute to the final cost of the project. The Planning Center Page 55 November 11, 2002 PiCPS-01.06 .ft U-1,Elemen1 11-11-02d DRAFT IV. Housing Constraints and Resources L Local Processing and Permit Procedures Builders and developers frequently cite the cost of holding land during the evaluation and review process as a significant factor to the cost of housing. Processing times vary with the complexity of the project. Holding costs associated with delays in processing have been estimated to add between 1.1 and 1.8%to the cost of a dwelling unit for each month;of delay. Again, fees are passed onto the buyer, and can ultimately increase homebuyer and renter costs. Application/Permit Review Time: The processing of Planning applications is dependent,upon a number of factors. During this calendar year, Planning staff has worked with applicants to prepare and submit more complete applications. This has resulted in reduced permit processing time and a',greater number of permits approved by Planning staff. Table 36 provides a summary of permit processing time frames by application type. Time frames categories are based upon number of calendar days, ;and follow typical time periods. Two key measures are identified—the number and percentage of applications approved in one day, and the number and percentage approved in 30 days or less. The Planning Division's goal is that Minor Architectural Approval (Minor AA's) and Single Family Residence (SFR) applications should be approved in 30 days or less. For CUP's,Tract Maps and PD's the goal is 45-60 days for permits that are final with the Planning Commission, and 60-75 days if City Council;approval is required. • TABLE 36 AVERAGE PROCESSING TIMES FOR 1999 PROJECTS INVOLVING DISCRETIONARY REVIEW Application Type Average Days to Approval Minor Architectural Approval 7 Major Architectural Approval 31 Single Family Residential 20 Land Use Permit 11 Conditional Use Permit 86 Tentative Map 79 Planned Development District 97 Variance 63 Administrative Modification 31 Sign Permit 4 The following illustrates Planning Department activity,in 1999. 95% of Minor Architectural Approvals and 740/. of Single Family Residences were processed in under 30 days. Sign Permits: 76%were processed in one day and 98%were processed in under 30 days. Page 56 Housing Element Update for the City of Palm Springs DRAFT 11"1'w,r", November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE Land Use Permits: 89%were processed in under 30 days. One proposal was denied in 1999. Processing times vary with the complexity of the project. Most residential zones in the City do not require discretionary review other than the subdivision process. Accessory Apartment units and the Planned Development District require additional processing time. Expedited processing of particular projects with affordability conditions is a concession the City may consider as an incentive to developers/property owners. g. Off--Site Improvements The City's policy is that affordable housing is to be indistinguishable from market rate housing in terms of the quality of materials or other architectural elements. Notwithstanding the required density bonus and relief on one other development standard, affordable housing projects are developed like any other in Palm Springs.This, however, can exacerbate the financing gap in these projects, as housing developers are required to construct sidewalks, curbs, and gutters, and improve half-streets and underground/ overhead power lines. Typically, the extra cost of upgrading the architecture and design, as well as constructing the public improvements, far exceeds the normal project's standards allowance for these items. Since rents are normally regulated by the entity providing the favorable financing, the gap sometimes increases to the point where the project is no longer viable. 2. Non-Governmental Constraints a. Environmental Constraints Environmental hazards affecting housing units include geologic and seismic conditions that provide the greatest threat to the built environment. The City has identified areas where land development should be carefully controlled. The following environmental "hazards" may impact future development of residential units in the City. Seismic Hazards: Like the entire Southern California region, the City of Palm Springs is located within an area of high seismic activity predominated by northwest-trending faults, generally of a right-lateral strike-slip nature, though faults of every type and orientation are found in the area. Palm Springs' close proximity to major fault zones subjects the area to surface rupture, ground shaking, and ground failure. The greatest potential danger is the collapse of older residential units constructed from unreinforced masonry, and explosions of petroleum and fuel lines. Some of the City's older buildings are among the most hazardous in case of earthquakes. Flooding: The principal watercourse adjoining the City is the Whitewater River, which combine with a number of smaller tributaries to present the most significant risk of flooding. With the river forming Palm Springs' eastern boundary with Cathedral City, a substantial portion of the City adjoins the floodplain, at risk of flooding damage in the event of serious Southland hydrological events. This is by no means unique to Palm Springs, and represents a phenomenon typical of the southern California climatological record. The most significant development along the River channel is the International Airport, with limited developments on the north end of the City. However, several miles of channel were hard-lined in 1998, reducing the flood hazard significantly. Toxic and Hazardous Wastes: There are several commercial land uses within the City that may produce and/or handle hazardous materials. As a mostly residential and recreational City, Palm The Planning Center Page 57 November 17, 2002 P CPS-oI OCiD.f,u,,,,,,,P/......n-I hnd,d, DRAFT IV. Housing Constraints and Resources Springs does not consider toxic/hazardous waste an overwhelming concern.The City also runs an aggressive household hazardous waste program. Fire Hazards: As a largely built community,the most serious fire threat within the City is by residents. While a large portion of the City is developed,there is minimal potential for fire related to brush, and the natural burning cycle of other organic materials in the nearby Santa Rosa and San Jacinto foothills. Fire hazards within the City may be associated with older commercial and residential structures,the presence of hazardous materials, and arson. Biological: Biological resources—native species of plants and animals--are necessary for the proper functioning of the environment in the short-term and for its long-term productivity. The Multiple Species Habitat Conservation Plan/Natural Communities Conservation Plan (Plan) under development by CVAG is designed to assure the conservation and long-term protection of biological resource areas as a valuable and important part of the mix of land uses. While the Plan would assure the preservation of the foothills and mountainous areas where development is already constrained by topography and other constraints,the Plan also proposes to conserve lands near and similar in character to those already developed. The Plan could potentially affect thousands of acres of land in the City of Palm Springs and,therefore, remove developable land and increase land costs. �i Noise: Residential land uses are considered the most sensitive to loud noise. The principal noise sources in Palm Springs generate from the primary transportation systems, including the International Airport, State Route 111, Highway 62, Interstate-10,the Southern Pacific Rail Line and other major surface streets. b. Infrastructure Constraints The City of Palm Springs is relatively improved with the majority of its primary backbone infrastructure systems in place. In developed areas, upgrading of such systems is sometimes necessary to accommodate new development or as a redevelopme,nt/infill improvement. New development in the currently undeveloped outlying areas will entail the provision of adequate infrastructure: major and local streets, curbs, gutters and sidewalks;water and sewer lines; storm drains; and street lighting.As part of the development permit process,the City requires the.provision of on-site and off-site improvements necessitated by development,which may constitute up to 10%of the building permit valuation. In most cases,these improvements are dedicated to the City,which then are responsible for their maintenance. The costs of such facilities are usually borne by developers, and are typically added to the cost of the new housing units and are eventually passed on to the homebuyer,tenant,or property owner. If these improvements are maintained by a Homeowners'Association,the cost of such maintenance is typically assessed to the homeowners'on a monthly basis. While these costs may not render a project infeasible, they contribute to the range of factors that affect the affordability of a project.A brief summary of the principal infrastructure systems serving the City follows: Water: The Coachella Valley is served by a supply of!high-quality water both in the form of groundwater and some surface supplies. Water is supplied to currently developed portions of Palm Springs, and to a major portion of the remaining planning area, by the Desert Water Agency (DWA). The backbone infrastructure for the City is currently in place,and the',DWA is continually upgrading and upsizing water transmission mains to keep abreast of development. In some cases,such as for a large master planned development,the project proponent may be required�to provide necessary backbone water system improvements up front as a condition of approval. However,for smaller tracts the developer is usually required to provide on-site improvements only. Although specific costs vary, hook up service fees for a single family home begin at$2,595 for a one inch meter and line per unit. A multi-family project would • Page 58 Housing Element Update for the City of Palm Springs DRAFT November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE require a larger meter and service line, with a base cost of $10,005. The provision of water is not considered a constraint to development in Palm Springs, although it does contribute to the overall cost of the unit. Sewer: Sewer services are provided by the City of Palm Springs. Both the Coachella Valley Water District and the Desert Water Agency also have sewer service capabilities within their respective service areas outside the City proper. The existing and future capacity of the sewer system is expected to provide an adequate level of service to meet future growth projections. The Master Planned system established a current capacity of 10.9 m.g.d. per day which was based on General Plan land use designations as established by the 1993 General Plan. The capacity of the headworks (treatment plant) has been expanded incrementally to meet construction demand on a periodic basis. However, the Palm Hills area, with an eventual potential for 5,000 units, has not been calculated in the current capacity of the sewer treatment system. As part of the Specific Plans required by the General Plan, wastewater studies would be required to determine improvements to the system. As well, if a developer proposes a project which exceeds the density established by the General Plan, a wastewater study is required to determine what improvements must be implemented, and the developer may be required to provide such on and off-site improvements as a condition of development. These costs would incrementally add to the ultimate cost of a home or rental unit. Current developer hook up fees charged by the City are$2,408 per unit. Flood Control: Flood Control through drainage channel alignment, design and construction have been • the responsibility of the Riverside County Flood Control and Water Conservation District (RCFCWCD) and the Coachella Valley Water District (CVWD). While the principal water channels in the area do not pose a threat to life or property, the City has developed a Flood Damage Prevention Ordinance designed to protect health, safety and property, public facilities and utilities, assure the most efficient use of flood control monies, ensure owner awareness of special flood hazards, and promote appropriate development controls in hazardous areas. C. Land Prices Land costs include the costs of raw land, site improvements, and all costs associated with obtaining government approvals. The supply of undeveloped land has not been a constraining factor to development in Palm Springs, although the cost of the land is becoming a constraint. The cost of land is one of the major components of housing development costs. Factors affecting the costs of land include: overall availability within a given subregion; environmental site conditions and constraints; public service and infrastructure availability; aesthetic considerations such as views, terrain and vegetation; the proximity to urban areas; and parcel size. The rapid increase in land costs throughout Southern California has pushed up housing costs simultaneously. Land in the Coachella Valley has been and remains relatively affordable compared to other Southern California markets, but increased demand for housing due to population growth and in- migration will continue to put upward pressure on land costs, particularly in the area in the vicinity of Palm Springs and other upscale resort communities. The seasonal nature of the housing market in the City also affects land costs. Developers may respond to rising land costs by decreasing the size of lots and houses in order to market a lower priced product, or by increasing the size and options of houses in an effort to keep a balance between land costs and the price of a house. Research conducted by Market Profiles on costs of undeveloped residential land in Riverside County revealed the following information: the raw cost of land for a hypothetical 100 unit development of single family detached housing, with a lot size of 7,200 square feet per unit ranges from $6,120 to$38,150, The Planning Center Page 59 Noven&,r 11, 2002 P iCvs-01.00D-fl u n-n-02 A, DPAFT IV. Housing Constraints and Resources while a finished lot is valued from $39,120 to $78,150. (Assuming ad ensity of four dwelling units per acre, the value per gross acre (includes lots plus necessary infrastructure such as roads, sidewalks and right-of-ways) ranges from $24,480 to$152,600. Land costs at the upper end of the ranges cited above are most likely applicable to the Palm Springs community and surrounding vicinity. While it appears that increasing density would lower the cost of land, the free market system tends to compensate for the additional potential value of multiple units and associated factors such as availability of infrastructure, proximity to transportation routes and services, etc., thereby creating the potential for the price of land designated for higher density uses to be more costly than for lower density land. The higher price of land for increased density uses may contribute to constraints to affordable housing when considered as an independent factor. However,the variance in land prices between single family and multi-family does not appear substantial in this part of the Coachella Valley. Although the City does not determine the price of land,, land use policies regulating the number of units built per acre directly impact the cost of each dwelling unit. The use of density bonus, developer incentives or construction at the upper end of the permitted density compensates for the increased land costs. In addition, large scale developers buying sizeable tracts of land typically experience an economy of scale benefit in the cost of land. As land costs in Palm Springs are generally comparable to, or lower than adjacent areas such as Rancho Mirage, Palm Desert, and Indian Wells, and are lower than in other areas throughout California, land costs are not considered a constraint to market rate development. However, land costs will strongly influence the production of housing affordable to lower income households. d. Construction Costs • One of the largest costs associated with constructing'a new living unit is the cost of building materials, labor and short term financing. The cost of construction depends primarily on the costs of materials and labor, which are influenced by market demand. The cost of construction will also depend on the type of unit built and on the quality of product being produced. Labor saving materials and construction techniques are available but tend to reduce the quality of the finished product. Construction costs in California have risen significantly over the past decade. The cost of labor is based on a number of factors, including housing demand, the number of contractors in the area and the union status if workers. Labor cost is usually two to three times the cost of materials, thus the cost of labor represents an estimated 17%to 20% of the cost of building a unit. Recent 2000 data from Market Profiles indicates that construction costs can constitute 43%to 48% of the cost of a single family detached housing unit. These figures are even more significant considering that the cost of raw land typically constitutes approximately 10%to 14% of the cost of a housing unit in Palm Springs. Typically, in the private sector market, the development of residential units is a business, and developers seek the greatest return for their investment. As with most businesses, a constraining factor in the area of profitability continues to be the marketplace where developers sell their products. To a great extent,the marketplace sets the upper end of the profit margin with overhead costs for construction constituting the lower parameter of profit. Analysis of the square footage costs of new residential developments in the City of Palm Springs reflect a general cost of between $92 to $118 per square foot for a single family detached unit, and an average of approximately $60 per square foot for a stacked flat single family unit (with no garage). The per square foot cost includes land, infrastructure improvements, overhead, profit, advertisement, building and processing fees, and financing, in addition to cost of materials and labor. Page 60 Housing Element Update for the City of Palm Springs DRAFT P ICPu W OGUI fl Hm,,L1 n-a-ezeo, November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE TABLE 37 REPRESENTATIVE DEVELOPMENT COSTS Development Type of Product #of Units Size of Unit(Sq.Ft.) Cost Per Sq. Ft.2 Vintage Palms Single-Family Detached 48 1,940-2,334 $92-$100 Flora Vista Single-Family Detached 77 1,470-1,610 $95-$118 Sandstone Villas' Condominium 148 810-1,500 $57-$66 Park San Rafael Single Family Detached 39 1,340-1,870 $96-$105 'The Sandston Villas represents an older apartment complex that was converted into condominiums. Cost per square foot includes land,infrastructure improvements,labor,materials,overhead,building and processing fees,financing and prom. The construction cost of housing affects the affordability of new housing and may be considered a constraint to affordable housing in the City. A reduction in construction costs can be brought about in several ways. A reduction in amenities and quality of building materials in new homes (still above the minimum acceptability for health,safety and adequate performance) may result in lower sales prices. For example,the Sandstone Villas units,cited above, do not include covered garages and instead utilize carports,which is reflected in the significantly lower cost per unit and sales prices. State Housing Law provides that local building departments can authorize the use of materials and construction methods if the proposed design is found to be satisfactory and the materials or methods are at least equivalent to • that prescribed by the applicable building codes. In addition, pre-fabricated,factory built housing may provide lower priced products by reducing labor and material costs. As well, as the number of units built at once in any subdivision increases,significant cost savings in construction costs over the entire development are generally realized as a result of economy of scale, particularly when combined with density bonus provisions. The City may also implement a variety of programs to write down land costs or provide other incentives such as reduction or waivers in development standards or processing fees in order to increase affordability. e. Financing Interest rates are determined by national policies and economic conditions, and there is little that local governments can do to affect these rates. Jurisdictions can, however, offer interest rate write-downs to extend home purchase opportunities to lower income households. In addition, government insured loan programs may be available to reduce mortgage down payment requirements. First time homebuyers are the group impacted the most by financing requirements. Mortgage interest rates for new home purchases ranged from 7%to 9%for a fixed rate 30 year loan in 1999,with an average rate of 8 to 8.5%in 2000. Lower initial rates are available with Graduated Payment Mortgages (GPMs),Adjustable Rate Mortgages (ABMs), and Buy-Down Mortgages. However,variable interest rate mortgages on affordable homes may increase to the point of interest rates exceeding the cost of living adjustments, which is a constraint on the affordability.Although rates are currently fairly low,they can change significantly and substantially impact the affordability of the housing stock. Flexible loan programs,such as those for first-time homebuyers, can offer down payment requirements between 0%and 20%. Such programs provide a method to bridge the gap between a required down payment and potential homeowner's available funds. Ultimately, however,the availability of financing for developers may pose a constraint on development outside of the City's control. The Planning Center Page 61 November 11,2002 Plcps-olA6lDuhH,.", lwemtldf-@dor DRAFT IV. Housing Constraints and Resources Interest rates at the present time are not a constraint to affordable housing. Financing for both construction and long term mortgages is generally available in Palm Springs subject to normal underwriting standards. However, a more critical impediment to homeownership involves credit worthiness. According to the Federal Housing Authority (FHA), lenders consider a person's debt-to- income ratio, cash available for down payment, and credit history,when determining a maximum loan amount. Many financial institutions are willing to significantly decrease down payment requirements and increase loan amounts to persons with good credit rating. Persons with poor credit ratings may be forced to accept a higher interest rate or a loan amount insufficient to purchase a house. Poor credit ratings can be especially damaging to lower-income residents, who have fewer financial resources with which to qualify for a loan. The FHA is generally more:flexible than conventional lenders in its qualifying guidelines and allows many residents to re-establish a good credit history. B. RESOURCES 1. Availability of Sites for Housing Future residential development in the City of Palm Springs will take place throughout the City, primarily in areas for which Planned Development District zoning and tract maps have been prepared. These properties include vacant and undeveloped lands presently within the City that are adjacent to, or within service hook up distance from public sewer, water and street systems. State law requires that zoning be consistent with adopted general plans. Zoning will be in accordance with the land use plans as detailed in the City's General Plan and specific plans. Development potential may be determined based upon the maximum allowable density of each land use designation/zoning district. Infill projects throughout the • City will also contribute to the City's future housing stock. Higher density residential opportunities are permitted in areas close to employment centers, commercial cores, and major transportation corridors, and in conjunction with resort and tourist uses. Based on the City's 1993 General Plan land use plan, the City has a development potential of 79,484 dwelling units. It must be noted that in this case the development potential does not distinguish between residential units or hotel units at build-out. As well, it must be noted that in the 1993 General Plan the Urban Reserve, Desert, Open Space and Conservation categories contain the potential for what is now designated as the Palm Hills Specific Plan (Specific Plan on the General Plan map). However, although the maps have been updated from 1993, the total build-out calculations in numerical terms are not available in updated format, so therefore the build-out forecasts according to the 1993 land use classifications are used in this Housing Element. As well, it is not clear from the tables in the General Plan if residential build-out capacity is calculated based on maximum dwelling unit potential in Indian owned lands (up to 86 hotel units per acre), or the residential capacity established in the High Density designations. The land use plan provides a mix of unit types and densities, and land use designations that will accommodate residential development. The build-out is comprised of potential number of units in the following land use designations: Residential: 61,258 dwelling units Commercial/Industrial: 4,533 dwelling units Urban Reserve, Desert, Conservation and Open Space: 13,289 dwelling units Civic: 404 dwelling units As of January 1999, a total of 38,875 units, inclusive of hotel and other seasonal/resort units, have been constructed in the City, representing attainment of 49% of the total potential in the City. The majority of Page 62 Housing Element Update for the City of Palm Springs DRAFT v,crn-"I 06W,,ft ,,,,,a u,,,„no-i«2A, November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE the remaining development potential is located within: vacant residentially designated lands; Indian owned land of varying residential designations;the Urban Reserve, Desert, Conservation and Open Space lands which allow for extremely low residential densities and Palm Hills; and commercial or civic designations which most likely will be developed as resort or hotel facilities,although mixed-use is permitted. a. , Vacant Land There is a total of 41,019 acres of vacant land remaining in this City. Of this, approximately 1,772 acres of the land is zoned specifically for residential uses (not inclusive of the Palm Hills Specific Plan),which constitutes a mere 4.3%of the total vacant acreage. Of the total vacant acreage, 3,817 acres are under ownership of the Aqua Caliente Band of Cahuilla Indians. Of this, approximately 10%of the Indian owned land is designated for residential uses. This translates to an equivalent of 22%of the remaining residentially designated land under ownership of the Aqua Caliente Band of Cahuilla Indians.The City has established an agreement with the Tribe whereby the City may process development applications on Indian owned land, of which the Tribe has the powers of appeal and overrule. The majority of available vacant land is found within the Single-Family Residential zones R-1-A, R-1-B, and R-1-C (31.5%, 18.4%,and 25.1%, respectively). The remaining 25%of the available vacant residentially designated acreage is distributed primarily between the three highest zoning designations: R-2, R-3, and R-4 (5.2%, 6.3%, and 4.4%, respectively). Table 38A identifies the potential development potential capacity under each zoning designation for the City of Palm Springs. The table indicates that the City could accommodate a minimum of approximately 11,835 units assuming development is produced at a minimum density. A slight increase in density increases the City's potential to 13,640 units. As well, application of density bonus and Planned Residential Development District would provide for additional potential and enhance affordability. Table 38B identifies the development potential by income category. The allocation assumptions are based upon housing type, past and present housing price trends, affordability levels presented in Table 23,tenure, and density. Additionally,vacant land zoned for mixed-use and specific plan were not considered in the income distribution. According to Table 38B, the City could accommodate up to 513 very low income,2,088 low income, 3,239 moderate income, and 2,771 above moderate income housing units on residentially zoned vacant land. A comparison to the City's RHNA reveals that the City has ample capacity to accommodate the allocation of 383 very low income, 260 low income,289 moderate income, and 570 above-moderate income housing units. Accordingly, land resources are not considered a constraint to meeting the City's RHNA objectives at this time. Vacant Single Family Residential Potential Statistics indicate that the majority of available vacant residentially designated land in the City is designated for lower density residential uses.Approximately 1,413 acres, 80%of the total vacant residential land, is allocated for densities of 4.5 single family dwelling units per acre and below. Although the majority of potential single-family development is presumed to be affordable to above- moderate and moderate income households, lower housing prices in the region and the availability of manufactured housing provide opportunity for low income households. There is additional capacity for lower income households in the Residential Mobilehome Park Zone,which holds approximately 11 acres • of vacant land that can support the development of 96 mobilehomes. The Planning Center Page 63 November 11,2002 AdCPS-01.0e .nxomse1­1111-1142Al DRAFT IV. Housing Constraints and Resources Infill development is also actively being pursued in Desert Highland, Crossley/Lawrence and Cottonwood/Chuckwalla tracts. The potential for extremely low density residential development also exists in lands designated as Conservation, Desert, Urban Reserve,and Open Space,although the actual acreage and potential cannot be calculated at this time, and are not considered to contribute significantly to attainment of the RHNA objective. Vacant Mufti-family Residential Potential Vacant land zoned or suitable for multi-family housing is limited, but adequate to accommodate achievement of the City's objectives. Approximately 140 acres are available in the R-G-A(6), R-G-A(S), and R-2 zoning designations,which typically accommodate a mixture of single-family and multi-family units. With a potential for 767 units,the vacant land could units affordable to low and moderate income households.An estimated 209 acres of available vacant land with potential for 2,533 dwelling units remain in higher density Multiple-Family and Hotel zones (R-3, R-4, and R-4VP).These designations can accommodate developments affordable to low and very low income households. • Page 64 Housing Element Update for the City of Palm Springs DRAFT r.kcrs-o+ocw 7How,su,,y,++-t+-azd,, November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE TABLE 38A SUMMARY OF RESIDENTIAL BUILD-OUT POTENTIAL Available Density Factor' Potentialz Zoning Vacant Housing Type Designation Acreage Minimum Moderate Minimum Moderate VACANT RESIDENTIAL LAND Single-family dwellings G-R-S 26.65 0.15 0.20 4 5 Single-family dwellings,manufactured R-1-AH 4.36 1.50 1.75 7 8 housing on permanent foundations Single-family dwellings,manufactured R 1-A 557.31 1.50 1.75 836 975 housing on permanent foundations Single-family dwellings,manufactured R 1 B 325.60 1.75 2.30 570 622 housing on permanent foundations Single-family dwellings,manufactured R 1 C 444.12 2.50 3.50 1,110 1,554 housing on permanent foundations Single-family dwellings,manufactured R 1 D 54.49 3.50 4.50 191 245 housing on permanent foundations Single-family dwellings,multi-family R-G-A(6) 20.37 3.00 4.00 61 81 dwellings Single-family dwellings,multi-family R G A(8) 27.18 4.00 5.00 109 136 dwellings Single-family dwellings,multi-family R 2 91.92 6.50 8.50 597 781 dwellings Multi-family dwellings R-3 110.95 10.50 15.00 1,165 1,664 Multi-family dwellings R-4 77.95 14.00 25.00 1,091 1,949 Multi-family dwellings R-4-VP 19.76 14.00 25.00 277 494 Residential mobile homes,multi-family R-MHP 11.29 7.5 8.5 85 96 dwellings TOTAL 1 771;95;'. 6,807,"'`' 8;612 NON-RESIDENTIAL Mixed-use CBD 3.7 30.00 28' 28' Palm Hills Specific Plan Specific No specific No specific density 5,000 5,000 Plan/Urban acreage associated-DU potential Reserve associated- only DU potential only :TOTAL` 1,775.65^.?' 11,,685': " 13,690' 'Based upon minimum lot size requirements and a net acre of 34,848 square feet(80%). 2 Dwelling unit potential may be inconsistent due to available parcel size and rounding. 'Assumes a density of 30 du/ac over 25%of the remaining vacant acreage in the CBD. °Does not include Palm Hills Specific Plan. Source:City of Palm Springs • The Planning Center Page 65 November 11, 2002 r¢es-m acme h u,,,,,,,e n-r 1-W e, DRAFT IV. Housing Constraints and Resources TABLE 38B RESIDENTIAL BUILD-OUT POTENTIAL BY INCOME CATEGORY Potential by Income Category Zoning Moderate Above Designation Potential Very Low Low Moderate Moderate VACANT RESIDENTIAL LAND G-R-5 5 5 R-1-AH 8 8 R-1-A 975 U29 488 R-1-B 622 311 R-1-C 1,554 389622 R-1-D 245 9861 R-G-A(6) 81 3320 R-G-A(8) 136 54 48 34 R-2 781 78 234 273 195 R-3 1,664 166 499 583 416 R-4 1,949 195 585 682 487 R-4-VP 494 49 148 173 124 R-MHP 96 24 48 24 TOTAL 8,612 513 2,088 3,239 2,771 i<eRHNA _. ""' ' `1,502,'.,`". .-:. .383._ ' 2611 269 ' 570 Note,Does not include Palm Hills Specific Plan or mixed-use land within the Central Business District. Source:The Planning Center b. Specific Plans An additional opportunity exists in the Palm Hills Specific Plan area. Although the majority of this area shall be retained in its natural state, residential and hotel/resort uses are accommodated. Up to a maximum of 5,000 potential units, including hotel/resort facilities, have been estimated and included in the General Plan build-out potential. Residential, recreational and resort uses are also planned in the CODA Specific Plan area. CODA is currently proposed to consist of an 18-hole Championship Golf Course, a resort hotel with 400 guest suites and 30,000 square feet of meeting and banquet space, 150 vacation ownership units, 13,000 square feet of retail space and 1,099 residential units.IThe residential units will include estate lots, single family homes, townhomes and multifamily condominiums. C. Underutilized Land The potential for recycling of residential land typically involves the redevelopment of sites which currently are built out at densities far lower than those designated, such as a single family home on a lot zoned for multi-family. It may also entail the replacement of existing lower density multi-family units with high density, small lot detached residential products utilizing the creative lot configurations accommodated by application of the Planned Development District mechanism. • Determining the potential for recycling of underutilized residentially designated land is a difficult, highly speculative process. Although there are some areas in the City which are currently developed with lower Page 66 Housing Element Update for the City of Palm Springs DRAFT P CPS 01 OMD,k er,—a 11-7 1-ns ao. November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE densities than General Plan or zoning designations assign, currently the primary focus of development is the infill of targeted residential neighborhoods and development of sizeable parcels of vacant land. Therefore, recycling of residentially designated land shall not be considered a significant resource for development at this time. As well, the area contained within the Palm Canyon Specific Plan is currently under consideration for a Specific Plan Amendment. This specific plan includes 746 acres and approximately 1,200 total units. Currently the proposal includes 650 hotel and time-share units with a balance of single family residence. d, Residential Development on Non-Residential Land In most cases, residential development potential is created by vacant or otherwise underutilized land that is already designated for residential use. However, there is potential in the City for mixed-use residential opportunities on land that is designated Downtown/Central Business District, Resort Commercial, and Professional through either development of vacant land or recycling of currently underutilized commercial lands, particularly in the downtown area and environs. The General Plan establishes policies which promote and accommodate residential development within, and adjacent to the downtown core area. These include: Policies 3.13.1 Allow for the development of structures that incorporate residential units on floors above and/or behind retail/office/commercial uses in or near the Downtown. 3.13.2 Allow for the intermixing of commercial uses and housing on sites elsewhere where abutting commercial and residentially designated parcels have been combined into a joint development parcel of a minimum of two acres and in accordance with the criteria of Policy 3.8.2 (a minimum of 50%of the maximum residential capacity must be developed). 3.15.17 Accommodate housing units, including high quality housing, on the second level or higher or to the rear of buildings provided that the residential and commercial spaces are fully separated, the impacts of noise, odor and otherwise adverse characteristics of commercial activity can be adequately mitigated, and a healthy, safe and well-designed environment is achieved for the residential units. 3.15.18 Encourage higher density housing at the perimeter of the downtown retail area. As identified in the analysis of zoning designations, residential uses are permitted in the Downtown and Professional designations above and/or behind commercial or office uses. In a consolidated mixed-use use project of 2 acres or more, the residential components are permitted above, behind or as stand alone when in the residential portion of the project. Densities of up to 30 du/ac are permitted in the Central Business District, and in other non-residentially zoned areas where residential potential exists, the established density is 15-21 du/ac. These densities can accommodate multiple family units affordable to lower and moderate income households. Although it is recognized that mixed-use projects with residential components are not appropriate for all locations where permitted in the City, there is potential for application in selected portions of the City, particularly in the older, more traditional commercial areas where pedestrian oriented activity is encouraged. • The number of potential units attributed to mixed-use projects within the CBD/Downtown and professional designations has been defined based on assumptions, as there have been no development of mixed-use or second floor projects utilizing this mechanism in the past 10 years and there are no potential projects currently under consideration. Assuming that densities of up to 30 dwelling units per The Planning Center Page 67 November 17, 2002 PWPS-oiacD"fl17,,.'Ela",tI I1-0d" DRAFT IV. Housing Constraints and Resources acre are developed above the ground floor retail on a minimum of 25%of the remaining vacant land designated as CBD, there is potential for approximately 28 units. As well, residential can be developed above commercial uses in existing structures, although the potential for such activity is difficult to determine. Although the General Plan accommodates mixed-uses, based on the limited amount of vacant land in the CBD, it is not likely that a two-acre vacant parcel will be available for development of a mixed-use project in the CBD, unless existing properties are recycled. Additional potential for recycling also exists in portions of the Downtown. The CBD is broken into "Village Neighborhoods" per the General Plan. The North Gateway portion of the Downtown contains a number of underutilized properties. The eastern portion of the'"North Gateway Village Neighborhood" has the potential for a high density hotel and residential uses through recycling of existing land uses. e. Accessory Living Units The City has adopted an Accessory Apartment Housing ordinance which permits development of second units, subject to a Conditional Use Permit, in the G-R-5, R-1-AH, R-1-A, R-1-B, R-1-C, R-1-D, R-G- A(6), R-G-A(8), and R-2 zones. Accessory Apartment Housing is prohibited in Planned Development District zones unless authorized in the originally approved plans. Since adoption of the ordinance, two applications have been submitted and approved. Based on past history of second unit development, combined with the lot coverage requirements, it is anticipated that only two or three Accessory Apartment Housing units applications may be anticipated through the planning period. Therefore, this is not considered a significant resource for attaining the City's new construction objectives. t. Annexation The City recently annexed sizeable amounts of land in the northern portions of the City. These areas, however, are designated as Windfarms, and contain no potential for residential uses. Any residential development existing in these areas has been retained by the County jurisdiction. There are a few areas outside of the City limits that are covered by the General Plan as requiring an Area Plan for development and subsequent annexation, including Snow Creek. However, there are no plans to prepare an Area Plan and subsequently annex these areas into the City during the five-year planning period. Therefore, inclusion of lands outside the City as a potential land r,esource is not appropriate at this time. 2. Preservation of Assisted Units at Risk of,Conversion State Housing Element Law requires the analysis of government-assisted housing units that are eligible to convert from low income housing to market rate housing during the next 10 years due to expiring subsidies, mortgage prepayments, or expiration of affordability restrictions, and development of programs aimed at their preservation. The following must be included in each housing element as part of its preservation analysis: An inventory of assisted housing units at-risk Of converting to market rate within ten years. An analysis of the costs of preserving and/or;replacing these units. Resources that could be used to preserve the, at-risk units. Program efforts for preservation of at-risk units. Quantified objectives for the number of at-risk units to be preserved during the housing element • planning period. Page 68 Housing Element Update far the City of Palm Springs DRAFT PiCP+-oi oeo,1so,,,,,s El ,u 23-11-02A November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE 101 Use restrictions, as defined by State law, means any federal, state or local statute, regulation, ordinance or contract which as a condition of receipt of any housing assistance, including a rental subsidy, mortgage subsidy, or mortgage insurance, to an assisted housing development, establishes maximum limitations on tenant income as a condition of eligibility for occupancy. The following section analyzes the potential conversion of assisted housing units to market rate housing. a. Inventory of Assisted Affordable Units An inventory of assisted, multi-family rental units in the City of Palm Springs was compiled based on a review of the Inventory of Federally Subsidized Low-Income Rental Units at-risk of Conversion (California Housing Partnership Corporation), information provided by David Paul Rosen and Associates, and follow up with individual assisted projects. Table 39 summarizes the results of the inventory. All multi-family rental units assisted under federal, state and/or local programs, including HUD programs, state and local bond programs, redevelopment programs and local in lieu fee, density bonus or direct assistance programs are included. TABLE 39 INVENTORY OF ASSISTED UNITS Date of Number Total Subsidy Project on Map Type of Unit Form of Assistance Units Termination Desert Flower Apartments 1 Family Mortgage Revenue Bond 129 2018 2500 E.Palm Canyon 2383 E.Racquet Club 2 Family Mortgage Revenue Bond 9 2018 3721 E.Calle de Carlos 3 Family Mortgage Revenue Bond 4 2018 3989 E.Calle de Carlos 4 Family Mortgage Revenue Bond 4 2018 Nightengale Manor Family Mortgage Revenue Bond 16 2018 Self Help Homes— Family CHFA, HCD, Redevelopment 19 2018 Gateway Neighborhood Agency Vista Del Monte Senior HUD Section 202 52 2026 Palm Springs Senior Citizen 5 Senior CHFA,refinement with HUD 116 01/2021 Apartments Mortgage, Project Based 3200 E.Baristo Road Section 8 Pacific Palms Apartments 6 Family,Senior Mortgage Revenue Bond, 140 2020 423 S.Calle El Segundo Tax Credits,Project Based Section 8 Coyote Run Apartments 7 Family Tax Credit 140 2023 3601 N.Sunrise Way Palm Springs View Estates 8 Family Tax Credit,Mortgage 120 2010 6300 Bolero Dr. Revenue Bond Palos Verdes Villas 9 Family Tax Credg/CHFA 95 2015 329 E.Stevens Rd. Rancheria del Sol 10 Family Section 236, Project Based 76 2003 303 S.Calle El Segundo Section 8 Tahquitz Court 11 Family Tax Exempt Bond 108 2023 2890 E.Tahquitz Canyon • Vista Serena 12 Senior HUD Section 202 57 2026 1201 E.Vista Chino The Planning Center Page 69 November 11, 2002 r�M01000-ft El 11-71-02eo, DRAFT IV. Housing Constraints and Resources TABLE 39 INVENTORY OF ASSISTED UNITS Seminole Garden 13 Family HUD Section 221(d)(3) 60 6/11/2005 Apartments 2607 S.Linden Way Sunnyview Villas Family HUDSection221(d)(% 11 12/23/2005 Protect Based Secton 8 TOTAL 1,189 The following map indicates the location of assisted units in the City of Palm Springs. • • Page 70 Housing Element Update for the City of Palm Springs DRAFT AdCPS-m.ocw.,,xoN,,,r ElenmoN 1-11-02 do, November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE Location of Assisted Units in Palm Springs e Run rtments ista Serena 22382 cquet Club :Palos Verdes Vllas ahquitz C Ra heria del 1�p halm Spring for Citizen Apartme s Pacific P Ims Apa s 3721 . Calle de Car 989 •Calle de rlos ert Flamer artments Not to scale inole Garden Apartments 8 alm S ings View Estates Figure 1 The Planning Center - - -- Page 71 NozemGer 11,W02 �w+�ar omno m rrM Trc..,.,r,.rr o.e� DRAFT IV. Housing Constraints and Resources This page intentionally left blank. Page T> Homing Elemwt Opdate for hoof Palm Sprtvgt DRAFT Ida ..b, 11.2002 City of Palm Springs HOUSING ELEMENT UPDATE The inventory includes 17 developments comprising a total of 1,189 units. Of these units, 928 units (77%) are family units and 261 (23%) are elderly units. Nineteen of the assisted units are owner- occupied homes. The remainder are rental units.These rental units received assistance under a combination of Housing Authority Revenue Bonds, CHFA,tax credits,the County of Riverside Multi- family Mortgage Revenue Bond program,the HUD Section 202 Senior Housing program,the HUD Section 221(d)(3) program, and Palm Springs Redevelopment Agency Funds. The assisted inventory in Palm Springs includes six developments totaling 405 units subsidized under HUD/FHA programs.There are seven developments financed with mortgage revenue bonds totaling 422 units. The remaining developments comprising 362 units received assistance from the California Housing Finance Agency (CHFA) and the Palm Springs Redevelopment Agency Housing Set-aside Fund. Additional assistance for projects with the above financing includes Low Income Federal Tax Credits, and additional subsidies from the California Department of Housing and Community Development(HCD). In addition,there are 292 units subsidized under the HUD Section 8 Rental Assistance Vouchers, although these units are not tied to a specific contact termination date associated with a HUD loan or financing program. b. Inventory of At-Risk Units The time frame for the analysis of assisted units is ten years.The initial date for the ten-year period is typically tied to the statutory update period for jurisdictions within the SCAG region. The date of this update of the Palm Springs Housing Element is July 1, 2000. HCD recommends that the inventory be divided into two five-year planning periods, coinciding with the current and subsequent Housing Element planning period. As shown in Table 40,three projects with a total of 180 units are at risk of losing their use restrictions within the first five-year period (July 1, 2000- July 1,2005). Of these units, 148 units are at-risk of conversion to market rate, and will be included in the Quantified Objectives table in Section VII. There are no units at risk of converting in the second planning period (July 1,2005 to July 1,2010). None of the remaining projects will be eligible to convert to market rate until 2010. TABLE 40 SUMMARY OF AT-RISK UNITS No. of Bedrooms At-Risk Units Potential Conversion Total Protect 1 2 3 Program Date Units n L Total Rancheria del Sol 12 52 121 Section 236,Project 2003 76 75 75 Based Section 8 SunnyvicwVillas 40' 4 HUD Section221(d)(3), 6/11/2005 44 43 43 Project Based Section 8 Seminole Garden 30e 302 HUD Section 221(d)(3) 6/11/2005 60 30 30 Apartments Project Based Section 8 TOTAL 1 12 122 46 1 180 148 148 'One of the three bedroom units is rented at moderate income 215 of each unit size are actually assisted One of the two bedroom units is a manager's unit which is not assisted The Planning Center Page 73 November 11,2002 nicrs-m acm.h H xi,El 1rri-ii-a2 DRAFT" IV. Housing Constraints and Resources There are three projects at risk of conversion during the Housing Element planning period,which have been financed with the HUD Section 236 loan program or the HUD Section 221(d)(3) loan program. All projects receive rental assistance through the Project Based Section 8 program. Sunnyview Villas is a 44-unit family housing complex. This project was financed through a Section 221(d)(3) market rate mortgage and has a Project Based Section 8 rental subsidy. Under this program, HUD pays the difference between a tenant's rent contribution (30%of monthly income) and the fair market rent(FMR)set by HUD for the area. Only Very'Low-income households are eligible to occupy Section 8 units. All of the units in the complex have affordability restrictions, with the exception of the manager's unit, and consist of 40 two bedroom and 4 three bedroom units. The owner of Sunnyview Villas can opt-out of the Section 8 contract in the year 2005. If the owner opts-out of the contract,there is no mortgage prepayment restriction that would require continued affordability,thus the units could convert to market rate at that time. One year advance',notice is required for an owner to opt-out of a Section 8 contract. Seminole Garden Apartments is a 60-unit family housing complex. This project was financed through a Section 221(d)(3) market rate mortgage and has a Project Based Section 8 rental subsidy on 30 of the units. Under this program, HUD pays the difference between a tenant's rent contribution (30%of monthly income) and the fair market rent(FMR) set by HUD for the area. Only Very Low-income households are eligible to occupy Section 8 units. One-half of the units in the complex have affordability restrictions, and consist of 15 two bedroom and 15 three bedroom units. The owner of Seminole Garden Apartments can opt-out of the Section 8 contract in the year 2005. If the owner opts-out of the contract, there is no mortgage prepayment restriction that would require continued affordability,thus the units could convert to market rate at that time. One year advance notice is required for an owner to opt-out of a Section 8 contract. Rancheria del Sol was originally assisted with a CHFA loan. The project has subsequently been refinanced with a HUD Section 2360)(1) loan. Seventy,-five (75) of the 76 units are available at rents affordable to very low income households. Typically, projects funded under the 236 loan program have a 40 year low income use restriction,which after the first 20 years,the owners can choose to opt out of the low income use restriction. The project is also assisted with a Project Based Section 8 rental subsidy on 75 of the units. However, during this planning period,the project is at risk of conversion to market rate due to the expiration of the Project Based Section 8 subsidy contract. Therefore, rent subsidies required to maintain the existing tenants in these units,are at-risk, but the use of the structures for low income households is not. The owner/management of Rancheria del Sol does not intend to opt-out of the Section 8 contract. Therefore,the City does not consider Rancheria del Sol at-risk. As for the other two projects in the City at-risk due to expiration of Section 8 contracts, one year notice would be required for the owner to opt out of the contract. C. Cost of Preservation Versus Replacement The three projects with a total of 180 units (148 assisted units) are at-risk of conversion to market rate during the July 1, 2000 to July 1, 2005 Housing Element planning period. The cost of preserving these units is estimated to be less in most cases to the City than replacing the units through new construction. Replacing the units with rehabilitated units may be cot effective in some instances. Cost estimates provided in this cost analysis are intended to indicate,an order of magnitude. Actual costs involved in each option will depend on the rental and real estate 'market situations at the time the affordability controls on these projects expire. Preservation of the units as affordable may require financial incentives to the project owners to extend • low-income use restrictions. Other scenarios for preservation would involve purchase of the affordable Page 74 Housing Element Update for the City of Palm Springs DRAFT AIM 01.0aw.h xo,,,r�r er,,,,�,n 1-11n2✓I November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE units by a non-profit or public agency, or local subsidies to offset the difference between affordable and market rents. Scenarios for preservation depends on the type of project at-risk. As no bond financed projects are at- risk during the 10 year analysis period, the three options available for the preservation of bond-financed at-risk units in the City of Palm Springs: refinancing; transfer of ownership; and rental subsidies are not summarized in detail in this section. Two options exist for preservation of units at-risk of losing their Section 8 rental subsidies: HUD may offer an extension of the Section 8 contract, or the City may offer rental subsidies. Contract Extension Rancheria.del Sol, Seminole Garden Apartments and Sunnyview Villas are Project Based Section 8 subsidized projects at-risk of losing affordability restrictions during the Housing Element planning period. There is potential for HUD to offer an extension at the time the contract expires. The owners of these three projects can terminate their Section 8 contracts at the expiration date, or renew the contract for another period. The primary incentive for Section 8 property owners to opt-out is the higher rent that would be paid for these units at market value. In order for the property owner to successfully opt-out of the project based Section 8 contract, certain procedural requirements must be satisfied. A Notice of Intent (NOI) must be filed with HUD one year before the termination date that indicates the owner's intent to convert the units to market rate. As well, they have to notify tenants of their intentions one year in advance of termination of the contracts. In the event the owner opts out and has met all noticing requirements, HUD is committed to protecting the tenant. To protect families living in assisted units, HUD will make vouchers available in the event project based assistance ends as a result of a Housing Conversion Action (i.e., opt-out). In order to limit displacement as a result of an opt-out, HUD makes "enhanced" vouchers available to residents. Residents may elect to remain in their unit when issued an enhanced voucher, or if they choose to relocate, a standard housing voucher is issued. Upon filing of a NOI, HUD may offer several incentives to property owners to remain in their contracts, including re-financing the property mortgage, and establishing higher rents charged for the project. Pursuant to Section 65863.10 of the Government Code, the property owners of these units must also provide six month advanced notification to each tenant household if the property owner intends to terminate the Section 8 contract. The notice must indicate the anticipated date of conversion and anticipated rent increase. The property owner is also required to serve notice to the City of Palm Springs. New legislation has been passed in association with the renewal procedures for expiring project based Section 8 and Section 8 New Construction contracts. In previous years, 1996 and 1997,the status of HUD's continuation of funding was uncertain and the possibility of converting renewals to a tenant based subsidy program was under consideration. The Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA) established new policies for the renewal of Section 8 project based contracts based on market rents for projects with contracts expiring in 1999. In 1999, contracts could be renewed under what was called the "Emergency Initiative", which used a methodology to determine status of rent structure termed Mark to Market. For projects with contracts expiring for the first time in 2000 or beyond, six renewal options are available. For the most part, the projects eligible were originally assisted with HUD insured loans that limited • affordability to lower income households. Therefore, options for renewal are assumed to be one of the following, although other options may apply depending on other project factors: (1) Renew at comparable market levels, possibly adjusted upward by OCAF (operating costs), which is the Mark Up to Market option; (2) Renew at current rents with no adjustments; (3) Notify HUD of intent to opt-out of The Planning Center Page 75 November 17, 2002 v iCPS 01 oGW-f,H,, ,uk"-,n-n 02 n,,, DRAFT IV. Housing Constraints and Resources Section 8 contract. For any project with rents currently exceeding comparable market rents, as a fourth option the owner may request referral to new Office of Multifamily Housing Assistance Restructuring (OMHAR) for reduction of Section 8 contract rents with or without the restructuring of rents. There are two other options available which are not applicable to the Palm Springs projects at this time. The conduct of a Rent Comparison Study (RCS) is used to establish the "initial" renewal term. Based on the RCS, rents can be adjusted up to market, remain the same, or be adjusted to accommodate increased operating costs and costs for rehabilitation,,as long as they did not exceed comparable market rents in the area, as determined by HUD. For FY 2000, most owners are required at the initial renewal stage, to submit a RCS to establish that contract rents are either above or below comparable market rents. HUD now requires 120 days notification (as compared to previous 90 day requirement) prior to initiation of renewal proceedings. The RCS starts a five year life cycle which upon expiration, requires that a new RCS be conducted. During the five year life cycle all subsequent renewals of the first contract, and renewals of other Section 8 contracts or,stages (where Section 8's within the same complex expire at different times) will not require a new RCS. For projects renewing for the first time in 2000 (or later), the owner may choose a one or five year term, although other terms are available. The owners of all three projects have indicated that they intend to extend their contracts at the time their contracts are eligible to terminate. Local Rental Subsidy An option for preservation of at-risk units assisted by either Project Based Section 8 funds and/or bond financing/RDA Set-Aside funds would be a local rental subsidy to residents. This option could be used to retain the affordable status of the units, by providing assistance to residents when their affordable units convert to market rate. Rent subsidies using state, local (Community Redevelopment Agency or City, the use of HOME funds, or other funding sources) can housed to maintain the affordability of these at-risk units. Rent subsidies can be structured to mirror the Section 8 program. Both City entities currently have several funding sources which could be used to provide subsidies to residents. The cost of providing subsidies for all 148 at-risk units with potential to expire during the planning period to maintain subsidized rents assumes that none of the at-risk units are preserved. The cost of providing subsidies is based on a comparison between fair market rents (FMR) and rents that are affordable for Low and Very Low-income families. Affordability is defined as rents that do not exceed 30% of a household's monthly income. Under the project based Section 8 program, HUD pays owners the difference between what tenants can pay (defined as 30% of household income) and what'HUD and the local Housing Authority estimate to be Fair Market Rent (FMR) on the unit. Section 8 assistance is only available to Very Low income households earning less than 50% of the County median income. The 1999 HUD median income for Riverside County is $47,200. At-risk units in the City during the 10-year period include one, two and three bedroom units, and are eligible only to Very Low income households. Therefore, an analysis of the affordability gap between fair market rents and income for households earning between 50% and 80% of the median County income (Low income households) is not warranted at this time. The analysis also assumes the average Very Low income household has an actual income of 50% of the County median income, adjusted for household size. As the funding requirements for the Seminole Garden Apartments, Sunnyview Villas and Rancheria del Sol projects makes it eligible only to Very Low income households, rental subsidies would not apply for Low Income households at this time. The current FMRs for the Riverside-San Bernardino Metropolitan Area (MSA), which encompasses the • City of Palm Springs, are shown in Table 41. Page 76 Housing Element Update for the City of Pabn Springs DRAFT P9CP5-07 OGDlkrh,,,,s Elgin.,, 11-1102A, November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE TABLE 41 FAIR MARKET RENTS FOR EXISTING HOUSING. RIVERSIDE-SAN BERNARDINO MSA Efficiency* I Bedroom 2 Bedroom 3 Bedroom 4 Bedroom $439 $489 $597 $829 $980 *Efficiency=Studio Apartment FMRs include utility costs Source: HUD Revised FY 1999 Income Limits Based on 1999 HCD adjusted HUD income data for Riverside County, affordable rents for Very Low Income households would be approximately$473 for a one bedroom, $590 for a two bedroom, and $638 for a three bedroom unit. As these are family units, this assumes two persons for a one-bedroom unit, a four-person household for a two-bedroom unit and a five-person household in a three-bedroom unit. All of the Very Low income units at the Rancheria del Sol, Seminole Garden Apartments and Sunnyview Villas apartments are currently subsidized through the project based Section 6 program. The cost of providing a rental subsidy to the 148 Very-Low income households is shown in Table 42 to be $6,664 per month, or$79,968 per year. Actual subsidies required will vary from this estimate, as some households will earn below the assumed 50% of the County median income and therefore require higher subsidies, while other households may be comprised of larger or smaller households than assumed for • the analysis and therefore the assumed baseline affordable rent is either higher or lower, which translates to a higher or lower subsidy. For example, in the event that a two bedroom unit is inhabited by a two person household, then the subsidy required would be$125 per unit per month, which would significantly increase the amount of assistance required. As well, it should be kept in mind that the actual rents currently charged at the three project based Section 8 apartments are not based on a fixed rent, but are calculated based on a payment of 30% of a tenant's income. TABLE 42 ESTIMATED MONTHLY SUBSIDY TO VERY LOW INCOME RESIDENTS Unit FMR Affordable Rent No. Units Difference I Total 1 Bedroom $489 $473 1 12 $16 $192 2 Bedroom $597 $590 106 $7 $742 3 Bedroom $829 $638 30 $191 $5,730 Total $6,664 r Affordable rent includes all utilities Replacement Cost Maintenance of the at-risk housing units as affordable will depend largely on market conditions, the status of HUD renewals of Section 8 contracts, and the attractiveness of financial incentives that the City can provide to investors, if warranted. Theoretically, replacement of units as an option is limited only to those at-risk projects owned by "for profit" investors with no long term use restriction by a public entity (such as HUD or City, as expiration of the current use restriction on these projects would actually physically reduce the City's affordable housing inventory). Technically, none of the projects meet these conditions. As all three projects at risk of conversion to market rate have use restrictions established by The Planning Center Page 77 November 11, 2002 P 1CPS-01 ocm,,f,H,—,,x El 11-1 r-o2 A DRAFT IV. Housing Constraints and Resources HUD, and all of the property owners intend to extend the Section 8 Contracts. For purposes of consistency, however, the cost of replacement of all of the at-risk units is presented in Table 45. However, should affordability controls on this project be lost in the City,the City has the option to construct new units to replenish its housing stock. The cost to replace the 148 units at-risk of converting to market rate during the 2000 -2005 housing element planning period will vary based on the timing of replacement and the economic conditions in the region. Recent construction cost information of an average of$125 to $130 per square foot for multi-family units (source: Building Industry Association [BIA]) was used to gauge the cost of replacing the at-risk units. Using the average square footages of available rental units at 700 square feet for one-bedroom units, 950 square feet for two bedroom units, and 1,300 square feet for three bedroom units, Table 43 shows the cost of replacing the at-risk units through new construction is approximately$18,512,500. The$125 per estimate is used for this analysis, as land in this area of the County is less costly in comparison than some other portions of the County, although it is more costly than many outlying areas in Riverside County. Again, it should be noted that HUD funding will likely be available to preserve the units. This fact coupled with the high cost for replacement, makes this an unviable option. TABLE 43 REPLACEMENT COST BY TYPE OF UNIT Number Square Cost Per of Total Unit Size Feet Cost Per S.F. unit units Cost • 1 Bedroom 700 $125 $87,500 12 $1,050,000 2 Bedroom 950 $125 $118,750 106 $12,587,500 3 Bedroom 1,300 $125 $162,500 30 $4,875,000 Total Cost $18,512,500 Other Replacement Units The City of Palm Springs Redevelopment Agency anticipates projects that will add affordable units to the City's housing stock. These projects will be added during the 2000-2005 planning period and may be considered to offset the number of units that convert to market rate, although the intent is that they augment the existing affordable resources. The anticipated new projects consist of 60 units located in the Garden Spring Apartments, 140 units in Belardo Gardens and 120 units in the Brentwood Homes development.These projects that are currently under construction are expected to add 320 units to the City's housing stock through 2005. However 260 of these units are proposed as assisted senior living complexes, and will serve a specified segment of the population. If the City is unable to preserve any of the at-risk units, these units may be considered to replace the units losing their affordability restrictions. At this time'it has been confirmed that the owners of all of the units currently assisted with project based Section 8 funds intend to renew their contracts for as long as HUD continues to offer funding. Therefore, none of the units are actually at serious risk of converting to market rate during the planning period. However, if no units convert to market rate, the City can expect a larger inventory of affordable units. Page 78 Housing Element Update for the City of Palm Springs DRAFT rion-in')GnD jeh,,,,„b.rmi.,,,11-7102,A November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE d. Resources for Preservation The types of resources needed for preserving units at-risk fall into three categories: 1)financial resources available to purchase existing units or develop replacement units;2) entities with the intent and ability to purchase and/or manage units at-risk; and 3) programs to provide replacement funding for potentially lost Section 8 rent subsidies. e. Public Financing(Subsidies: A variety of federal,state and local programs are available for potential acquisition, subsidy, or replacement of units at-risk. Due to both the high costs of developing and preserving housing and limitations on both the amount and uses of funds, a variety of funding sources would be required.The following summarizes financial resources available to the City for preservation of assisted, multi-family rental housing units. Federal Programs CDBG—This program is intended to enhance and preserve the City's affordable housing stock. CDBG funds are awarded to the City on a formula basis for housing and community development activities. Eligible activities include: acquisition, public facilities and improvements, rehabilitation, economic development, and public services. CDBG grants benefit primarily persons/households with incomes not exceeding 80%of the County median family income. • ➢ HOME Investment Partnership—HOME funding is a flexible grant program which is awarded to Palm Springs on a formula basis for housing activities which takes into account local market conditions, inadequate housing, poverty and housing production costs. HOME funding is provided to jurisdictions to either assist rental housing or home ownership through acquisition, construction, reconstruction and/or rehabilitation of affordable housing.Also possible is tenant based rental assistance, property acquisition,site improvements, and other expenses related to the provision of affordable housing and projects that serve a group identified as having special needs related to housing. Section 8 Rental Assistance Program—This program provides rental assistance payments to owners of private market rate units on behalf of very low income tenants. Section 811/202 Program—Non-profit organizations and consumer cooperatives are eligible to receive no interest capital advances from HUD for the construction of Very Low income rental housing for senior citizens and disabled persons. Project based assistance is also provided in conjunction with this program.Section 811 can be used to develop group homes, independent living facilities, and intermediate care facilities. Eligible activities include acquisition, rehabilitation, new construction, and rental assistance. HUD Low Income Housing Preservation and Resident Homeownership Act(LIHPRHA)— LIHPRHA was enacted in response to concern over the prepayment of HUD-assisted housing. The legislation addresses the prepayment of units assisted under Section 221(d)(3) and Section 236 (Section 236 replaced the Section 221(d)(3) program in 1968). Generally,the law facilitates the preservation of these low-income units by providing incentives to property owners to either retain their units as low-income, or to sell the project to priority purchasers (tenants, non-profits, or governmental agencies.) The Planning Center Page 79 November 11,2002 PWFS-m Oc ,,fie Hnv,V-111-11-02 d� DRAFT IV. Housing Constraints and Resources Pursuant to LIHPRHA, HUD must offer a package of incentives to property owners to extend the low- income use restrictions. These incentives would assure property owners an 8% return on the recalculated equity of their property, provided the rents necessary to yield this return fall within a specified federal cost limit. The cost limits are either 120%of the FMR, or the prevailing rent in the local market. If HUD can provide the owner with this return,the owner cannot prepay the mortgage. The owner must either stay in the program, or offer to sell the project (a"voluntary" sale) to a priority purchaser for a 12-month option period, or other purchasers for an additional three months. The owner is required to document this choice in a Plan of Action. If HUD cannot provide the owner with the 8% return, i.e.,the rents required would exceed federal cost limits, the owner may prepay only after offering the sale to priority purchasers for 12 months, or other qualified buyers for an additional 3 months (a "mandatory" sale), and filing a Plan of Action which demonstrates that conversion will not adversely impact affordable housing, or displace tenants. According to the California Housing Partnership Corporation, most projects in California will fall within federal cost limits, except those with exceptionally high rental value or condominium conversion potential. Projects that are preserved under either of these methods are required to maintain affordability restrictions for the remaining useful life of the project, which is defined minimally as 50 years. Despite these requirements, property owners may still be able',to prepay. First,the owner may prepay the property if no qualified offer to purchase the property is made. Second, HUD may not provide some of the discretionary monies to priority purchasers in preservation sales. Finally,the overall success of the preservation efforts is contingent on congressional appropriation of sufficient funding to HUD. State Programs California Housing Finance Agency (CHFA) Multiple Rental Housing Programs—This state program provides below market rate financing to builders and developers of multiple-family and elderly rental housing. Tax exempt bonds provide below market mortgage money. Eligible activities include new construction, rehabilitation, and acquisition of properties with 20-150 units. Low Income Housing Tax Credit (LIHTC)—This state program provides tax credits to individuals and corporations that invest in low income rental housing. Tax credits are sold to corporations and people with high tax liability,,and proceeds are used to create housing. Eligible activities include new construction, rehabilitation, and acquisition California Community Reinvestment Corporation (CCRC)—This private, non-profit mortgage banking consortium provides long term debt;financing for affordable multi-family rental housing. Eligible activities include new construction, rehabilitation, and acquisition. Local Programs Redevelopment Agency Funding-20% of this local agency's funds are set aside for affordable housing activities governed by state law. Eligible activities include acquisition, rehabilitation, and new construction. The Palm Springs Redevelopment Agency generates approximately $800,000 annually in low and moderate income housing funds.These funds are used as a local match for HOME funded programs at a minimum 1:4 ratio. • Page 80 Housing Element Update for the City of Palm Springs DRAFT e CPSu,aGVrn,,gs.,,,.,,,e.u,,,,.,,,11_11-02n,, November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE f. Nan-Profit Entities The City of Palm Springs has close working relationships with numerous non-profit entities that may be interested in acquiring and/or managing units at-risk of conversion. C. PROGRAM EFFORTS TO PRESERVE AT-RISK UNITS The following housing programs have been developed to address the preservation of assisted Very Low income units eligible to convert to market rate.The Palm Springs Community Redevelopment Department will be responsible for implementing the programs. Funding for implementation could be provided through funding sources cited above. Monitoring At-Risk Units—The City will maintain contact with owners of at-risk units as the use restriction expiration dates approach.The City will communicate to the owners the importance of the units to the supply of affordable housing in Palm Springs as well as its desire to preserve the units as affordable.The City will confirm in 2004 that the owners of Seminole Garden Apartments and Sunnyview Villas have filed to continue their Section 8 contracts, and will determine whether HUD will offer the owners a contract extension in 2005. Subsequent to that,they will contact the owner of Rancheria del Sol in 2002 to determine if they have filed for extension of their Section 8 contracts.The City has in place local incentives that can be offered to property owners to preserve any at-risk units (see following sections). • 5' Rental Subsidies—If HUD funding is discontinued at some point in the future within the planning period to subsidize affordable units,and other methods to preserve the at-risk units fail, the City will determine if it can assign financial resources to provide rental assistance to Very Low income tenants to cover the difference between their current rents and market rents.The previous section addressing the cost of preservation describes how a subsidy program would work. If the City does not want the units at Seminole Garden Apartments, Sunnyview Villas and Rancheria del Sol to convert, options available to the owners include: Offer rental subsidies using HOME or other available funding; Work with the property owner to refinance the mortgage at lower interest rates; > Work with non-profit entities to evaluate the potential for acquisition of the complex (although, as only a portion of the units are at-risk this may not be feasible); Consider City acquisition and rehabilitation of the project using RDA 20%Set-Aside funds. D. QUANTIFIED OBJECTIVES The City of Palm Springs Consolidated Plan contains a five-year strategy for meeting the City's housing and community development needs.The Consolidated Plan Document(CPD) establishes housing priorities that relate to affordable housing.The basic premise is to preserve existing rental and owner- occupied housing resources,thus representing the City of Palm Springs' desire to preserve affordable units. Based on the Consolidated Plan's Housing strategy, and the circumstance that the 148 units at risk of conversion to market rate over the planning period are intended to have their Section 8 contracts renewed, a total of 148 units shall be reflected in the quantified objectives for preservation of at-risk units. The Planning Center Page 81 November 11,2002 Pscrt-01 O�,(t Hvaiq VePler 11-11-02 eoc DRAFT IV. Housing Constraints and Resources This page intentionally left blank. • Page 82 Housing Element Update for the City of Palm Springs DRAFT P¢Ps-01 oc�n,fj Hmnmg etc,„,a,i I 1ti2.e,, November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE V. REVIEW OF HOUSING ELEMENT PERFORMANCE TO DATE A. PROGRESS IN IMPLEMENTING THE 1989 GOALS ANV OBJECTIVES State law establishes a five-year cycle regulating housing element updates. In compliance with the SCAG cycle, the Palm Springs Housing Element was updated in 1989 and revised in 1993 at which time it was found to be in compliance with State law. The SCAG Regional Housing Allocation Model indicated a new construction need in Palm Springs by 1994 of 2,844 units, of which 533 units were for very low income households, 649 for low income households, 446 for moderate income households, and 1,217 units for above moderate income households. The following discussion is a brief highlight of the progress, effectiveness and appropriateness of the past Housing Element objectives. It should be noted that although the past Housing Element did establish some quantified objectives by income classification, they do not correspond to the information presented in the Objective Summary and Time Frame matrix, nor did it quantify objectives for the majority of programs. Therefore, analysis of the past element is of a more qualitative nature where specific numerical achievements are not available. The following objectives were met over the planning period: The Planning Center Page 83 November 11, 2002 a CPS-m oao.!I/, ,,T erm,,,,,n-r o-a?,tm, DRAFT V. Review of Housing Element Performance To Date This page intentionally left blank. Page 84 Housing Element Update for the City of Palm Springs DRAFT P�CPS-or oao,ol, +,,,,e El",,111-11-01,1" November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE TABLE 44 EFFECTIVENESS OF PAST ELEMENT Effectiveness Program Program Objective 1989-1997 1498.2000 Comments 4.1.8. Acquire land using State funds for housing No land was acquired No land was acquired The City did not acquire any land using state funds. Land Banking development. using state funds using state funds However,the City,utilizing RDA funds,did acquire some properties in the early 1990s and then offered the land to developers or non-profits proposing lower income units.This land write down assistance was applied to the 140 Coyote Run multi-family units, 20 single-family units in the Desert Highland Community Phase I Revitalization, and 11 single-family units in the Desert Highland Community Phase II Revitalization in conjunction with CVHC under the Self Help program. 41.9. Facilitate construction of 108 to 325 units A total of 212 57 affordable units were Four multi-family projects with a total of 269 New Construction of affordable housing per year, affordable multi-family constructed during this affordable units: 52 senior units at Vista Serena;57 units were constructed period senior units at Vista Del Monte; 140 family units at Coyote Run;and 20 family units at Palos Verdes Villas,for an average of 27 units per year. An additional 31 affordable single-family units were constructed under the Infill program and Self Help programs in conjunction with CVHC. 4.1.11. Prepare Annual Report to the City Council. Not completed Not completed Due to limited staffing and housing activity,annual reports were not prepared.This will be undertaken Annual Housing Progress Report beginning in 2000-2001. 4.2.2. Maintain level of Section 8 subsidy. The City maintained an The City increased its The number of Section 8'units in the City has Section 8 average of over 200 Section 8 units to 239 in increased to 239. units per year 2000, 4.2.4. Commercial developer contributions to No contributions from No contributions from There was not interest in contributions to affordable Regional Developer regional affordable housing funds. developers were developers were housing funds on the part of commercial developers. Participation Program collected during the collected during this period period. 4.2.5. Construct 10 units per year of self-help 20 units total 11 units total Although approximately 41 units were proposed, only Self-Help Housing housing. 31 units total were constructed in the Desert Highland neighborhood in conjunction with CVHC. The Planning Center Page 85 November 11, 2002 DRAFT V. Review of Housing Element Performance To Date TABLE 44 EFFECTIVENESS OF PAST ELEMENT Effectiveness Program Program Objective 1989-1997 1998-2000 Comments 4.3.4, Complete build-cut of affordable mobile No mobilehome units No mobilehome units The Agency acquired the vacant 20-acre portion of the Mobile Home Construction home park, approximately 285 new units. were added to stock were added to stock Sunrise Village Mobilehome Park in 1995:the City owns a 22-acre vacant parcel abutting to the north.A developer is currently negotiating with the City for the purchase of these lands, in addition to other non-city owned land adjacent to these parcels for the development of about 400 market rate single-family units.A non-profit agency(San Bernardino Mobilehome Park Corporation)is interested in acquiring the existing portion of the Sunrise Village to upgrade the park and its units.The Agency does own the land that the mobilehome park occupies. - -- ----- Review vacant land inventory and This program has not This program has not The City does not have a GIS system or a method for -- ---------------- - ecommend changes needed to increase been implemented been implemented -systematically monitoring vacant land.As part of this Land Inventory Review supply available for affordable housing.PP 9 Housing Element update,a tabulation of vacant land, by bath General Plan and zoning designation, will be conducted,although the vacant land resources are not mapped as part of the effort.As part of the Affordable Housing Strategy developed in conjunction with the Housing Element Update,a survey of City/Agency owned land will be conducted. 4.5.3. Review any areas of constraining sewer The City has a Master The City has a Master The City is fully sewered and has adequate capacity Sewer Capacity Review capacity in conjunction with program Plan designed to Plan designed to for growth within its boundaries. Sewer capacity number 4.5.1 above. accommodate full accommodate full build- constraints are not at issue, build-out. out. 4.6.1. Develop policy requiring one for one The City implements a The City implements a The City did not adopt an ordinance that requires a Replacement Housing replacement of demolished affordable units. replacement policy in replacement policy in one-for-one replacement of affordable housing units redevelopment areas redevelopment areas as on a citywide basis. However,the City does replace Ordinance as required by State required by State units, and/or relocate tenants pursuant to State Redevelopment law. Redevelopment law. Redevelopment Law. Page 86 Hounng Element Update for-the City of Palm Sp M S DiW PPCP3-01 11 10"J.,011,1.1 November 1 1,02 ! City of Palm Springs HOUSING ELEMENT UPDA TE TABLE 44 EFFECTIVENESS OF PAST ELEMENT Effectiveness Program Program Objective 1989-1997 1998-2000 Comments 4.6.2. Rehabilitate 12 to 20 homes per year. No single-family units The Single Family The City did not implement a Single Family were rehabilitated Rehabilitation program Rehabilitation program during the past planning period, Single-Family duringthis period. was established in Rehabilitation P (although they did operate a Senior Home Repair 1999. 100 applications program)and did not refer any homeowners to the have been reviewed. County HIP program, due to limited funds and staffing. In 1999,the Single Family Rehabilitation program was established under the umbrella of the Neighborhood Revitalization Program.The activities conducted under the previous Operation Paintbrush program,which was discontinued by 1994,including exterior paint and yard cleanup will be integrated into the new program. Loans of up to$25,000 will be available for low/moderate income households. Priority for award of loans is based on need,income and location of unit within a Redevelopment Area or outside of a Redevelopment Program area. Approximately 40 units are targeted each year, 4.6.3. Develop program and rehabilitate 10 units No multi-family units No multi-family units A multi-family rehabilitation program was not Multi-Family Rehabilitation per year. were rehabilitated were rehabilitated during developed as proposed during the planning period due during this period. this period, to limited funds and staff resources, nor were any property owners of multi-family units referred to the Riverside County programs. However,in 1999 a Multi- family Rehabilitation program was established and $450,000 of redevelopment funds assigned to rehabilitate 136 units,of which 67 must be reserved for low income households. Operation Paintbrush A Citywide program for exterior paint and The program was The program was not The activities previously encompassed by this (Program 1989-93) clean-up of residential property in Low- terminated in early implemented during this program will be integrated into the Neighborhood income targeted neighborhoods at no cost 1990s.An unknown period. Revitalization Program—Single Family Revitalization to property owners. number of units were activities. assisted with exterior clean-up and maintenance. The Planning Center Page 87 November 11, 2002 E�Cas-111000,,f1J1 .,,,ti.E1m„„n1-71-02,A, DRAFT V. Review of Housing Element Performance To Date TABLE 44 EFFECTIVENESS OF PAST ELEMENT Effectiveness Program Program Objective 1989-1997 1998.2000 Comments Construction Training A joint venture between the Palm Springs One home was The program between This program,funded through CDBG,will potentially Program (Program 1989- Unified School District and the Agency that constructed and sold the Palm Springs Adult continue but may not result in the construction of 90) established a construction trades training to a Moderate-income School and Desert additional housing units. program utilizing on-the job hands-on family.Although the Highland Unity Center training in all aspects of construction trade. program continued continues,although no through the period, no units were constructed. additional units were constructed. Property Upgrade A program designed to provide up to This program was not This program was not The Single Family Rehabilitation program with loans up Assistance (Program $10,000 in loan funds for the improvement implemented due to implemented due to lack to$25,000 has been established in 1999. Priority for 1989-90) of single-family residential units in targeted lack of funds and of funds and staffing, funds is given to units in target or redevelopment area Low-income neighborhoods. staffing. neighborhoods. -- Preservation"At-Risk" A join venture between the County,a local No units were The Pacific Palms One project was assisted from conversion to market Units (Program 1989-90) non-profit and the Agency for the -converted to market apartment units were rate.-The other at-risk units either extended their ----- preservation of"At-Risk'units that are rate during this period, preserved through a project based Section 8's, refinanced or changed slated for prepayment of their HUD County of Riverside ownership. guaranteed mortgage through acquisition effort. and/or renovation of units. Senior Home Repair A program designed to provide minor home Approximately 55 Approximately 55 senior The amount of grants awarded was increased to (Program 1989-90) repair assistance though the allocation of a senior units were units were assisted $1,000 in the mid 1990s, and was increased to $500 grant per year for senior citizens assisted annually. annually. $1,500 in 2000. throughout the City. County Housing Authority A joint venture between the County and 17 such units were 17 units in the City that The County Housing Authority Public Housing units in Bond Issue (Program multiple Coachella Valley cities to float a located in the city of were owned by the the City are now under ownership of Palm Desert 1990-91) bond issue for the purpose of acquiring Palm Springs County were sold to which contracts with a private management firm to housing units for renovation and Palm Desert in 1998. operate. management by the County throughout the Coachella Valley. Down Payment Assistance Providing assistance thought the Down- No assistance was One unit is currently in The City is a member of the Pacific Housing Finance Payment Assistance Program for Low- provided during this escrow for a moderate Agency Joint Powers Authority which provides "lease income individuals to acquire rehabilitated period for acquisition income household. to own"opportunities for low/moderate income single-family residential units in targeted of rehabilitated units. families. Up to 10 units are anticipated per year. Low-income neighhorhoods. P cP P�81�I' ���' Hozsring Element Update foi,the City of Palm S�gs November 11, 2 ! City of Palm Springs HOUSING ELEMENT UPDA TE TABLE 44 EFFECTIVENESS OF PAST ELEMENT Effectiveness Program Program Objective 1989-1997 1998-2000 Comments Desert Highland New Buy down vacant lots and assist developer 20 units were No units were The City, in conjunction with CVHC, assisted in the Construction (1990-91) with the cost of fees for the development of developed in Phase I, developed during this development of 31 single family units through a two new single-family construction in targeted and 11 in Phase II. period. phased program through land write downs and down Low-income neighborhoods. payment assistance. 20 units affordable to low income households were constructed in Phase I, and 11 units were constructed through the CVHC Self Help in Phase II (although 21 were originally proposed).The City is currently entertaining proposals from developers for six income restricted single family units on currently owned City lots. Down-Payment Assistance A program designed to provide dawn- 11 units in the Desert No units were assisted The City provided second silent mortgages to the Program (1991-92) payment assistance in the form of second Highland neighborhood during this period with homeowners of the 11 Self Help units of up to loans of$2,000-3,000 to Low-income in conjunction with Dawn Payment $25,000 per unit in the Desert Highland neighborhood. families for the acquisition of homes CVHC Self Help Assistance loans. The City intends to continue to offer Down Payment produced through the Self-Help and Infill program were Assistance to CVHC for its proposed 9 Self Help Light Housing Programs. assisted, units in the Cottonwood/Chuckwalla neighborhood, and to be used in conjunction with units developed by other non-profits or developers tilling to provide income restricted units.This may be an incentive tool utilized in the Crossley Tract,where 27 vacant single- family lots are available for purchase by a developer or non-profit for single-family units affordable to lower income households.The City is in the process of raising property owner interest in selling their lots. Vista Serena/Vista Del Joint venture between the Agency and 52 and 57 units,all 57 very low income A total of 109 units, all affordable to very low income Monte developer for the development of 109 units very low income,were senior units were seniors, were constructed,which exceeded the of senior housing facilities with related constructed in the constructed in the Vista targeted objective of 50 very low income units. recreational amenities. 50%of units to be Vista Serena senior Del Monte project. designated for Very-Low income(not to project. exceed 50%of the median income limits). The Planning Center Page 89 November 11, 2002 PXPs.m oeo,=f=eo,,.,,,g DRAFT V. Review of Housing Element Performance To Date TABLE 44 EFFECTIVENESS OF PAST ELEMENT Effectiveness Program Program Objective 1989.1997 1998-2000 Comments Palos Verdes Villas The development of a 98-unit apartment 20 units of this No units In addition, 140 very low/low income family units were and Coyote Run (1992-93) complex, 20 of which will be designated for complex are reserved constructed at the Coyote Run apartments. Very-Low income families (not to exceed for very low income 50%of median income limits). families.The remainder are affordable to low and moderate income families. Page 90 Hoasing Element Update for the City of Pahn S r ngs DOT P16P5-oi.o�n.{loE1,., ,u-a-oze,. November11 W2 City of Palm Springs HOUSING ELEMENT UPDA TE 10 TABLE 45 PROGRESS TOWARDS OBJECTIVES HOUSING UNITS CONSTRUCTED JULY 1989—JANUARY 1998 Very Unit Type/Description #Units Low I Low Moderate Upper NEW CONSTRUCTION Single Family Detached 554 31 110 413 Single Family Attached 24 24 Multi-family 1,191 269 435 487 Accessory Apartment Units 2 2 Subtotal 1,771 269 492 597 L413 REHABILITATION Single Family Rehabilitation - Multi-Family Rehabilitation Senior Home Repair 360 120 120 120 Subtotal 360 120 120 120 PRESERVATION Pacific Palms 141 14D - Subtotal 140 140 ASSISTANCE • Down Payment Assistance Loans 11 11 Mortgage Credit Certificates 10 5 5 Housing Authority Leases 17 17 Section 8 Rental Voucher Assistance 239 239 Subtotal 315 256 16 5 Total 2,586 785 628 722 413 RHNA 2,844 533 649 446 1,217 Unmet Objectives -1,073 -264 1 -157 1 +151 -804 Source* City of Palm Springs The City was not successful in achieving a number of its 1993 Housing Element goals, significantly falling short in several program areas, particularly rehabilitation, and new construction. The City did not meet its established new construction goals, which correlated to the RHNA, for the very low, low, and above moderate income household categories. The progress toward the objective for the low income category with a shortfall of 157 units was achieved through a combination of assisted multi- family units, single family units constructed in the Desert Highland neighborhood in conjunction with CVHC, and market rate multi-family and/or attached residential products (although the majority of market rate products may consist of smaller sized units). Progress toward the moderate and above moderate income goals were achieved through market rate construction. However, a significant shortfall was experienced particularly in the above moderate category, with a shortfall of over 800 units. The City also did not meet its objective for the very low income group, with a shortfall of approximately 264 units. The City was successful however, in providing 269 new units affordable to very low income households, augmented by separate Section 8 rental vouchers. • The City also fell significantly short of its Housing Rehabilitation goals over the past planning period. Both the Single Family and Multi-family Rehabilitation programs were dropped in the early 1990s before any rehabilitation activity was undertaken. However, in 1995-1996,the City implemented a "Recapture The Planning Center Page 91 November 11, 2002 P iCPS-m ociou f Ftrme1 71-11-02 day DRAFT V. Review of Housing Element Performance To Date Our Neighborhoods" program which established four target neighborhoods; (1) the Crossley/Lawrence tract; (2) Cottonwood/Chuckwalla neighborhood; (3) Desert Highland neighborhood; and (4) the neighborhood south of downtown encompassed by Indian Avenue, Ramon, Riverside Drive, and Sunrise Way. Activities have been primarily centered around code enforcement. With the introduction of the new Neighborhood Revitalization Program in 1999 to support the Recapture Our Neighborhoods effort, as well as provide opportunities for rehabilitation of units outside the target areas, the City is geared for active participation in the revitalization of both single family and multi-family units in the 2000-2005 planning period. In terms of successful rehabilitation efforts over the past planning period, the City did maintain a Senior Home Repair program that provided grants of originally$500, which increased to$1,000 and then $1,500 per household, to seniors and handicapped households for minor repairs. Approximately 55 households were assisted per year, primarily lower income. It is difficult to measure achievement of the City's Housing Conservation goal, as the 1993 Element included existing apartments, mobilehomes, the existing inventory of assisted units, Section 8 rental vouchers and other sources of units affordable at market rate in its goal of 6,460. The City was able to assist 11 households in the Desert Highland neighborhood to attain homeownership. As well, 10 households were assisted through the County's Mortgage Credit Certification Program, and 239 received Section 8 rental vouchers from the County of Riverside Housing Authority. In general, the shortfall in new construction of housing units and housing rehabilitation objectives can be attributed to the depressed economic climate in the Southern California housing market in the early . 1990's. During this time, development activity severely slowed down, particularly in Palm Springs, which saw increasing amounts of new seasonal housing construction leak to surrounding cities. In addition, the recession reduced City funding and staffing levelsi Reduced developer interest and the limited ability of non-profit organization resourcesto provide affordable housing, combined with diminished Federal, State and local funding opportunities all contributed to the shortfall in new construction of units affordable to households with income below 50% of the County median, and rehabilitation activities. The drop in land values and residential real estate lending practices following the national savings and loan scandal, changes in the residential insurance market related to earthquakes and fires, increasing foreclosure rates associated with the impacts of the recession on the job market, and increasing construction defect litigation which, when combined, resulted in an economic downturn of the Southern California development environment. In light of the economic conditions of the past planning period, the City has made progress in establishing programs to meet their objectives for the upcoming planning period 2000-2005. I Page 92 Housing Element Upelate for the City of Palm Springs DRAFT rWPs-01 ocO,/11...„y Em,ne„,a-11-02,k November I I, 2002 City of Palm Springs HOUSING ELEMENT UPDATE Vt. GOALS, POLICIES, PROGRAUS,AND QUANTIFIED OBJECTIVES A. GOALS AND POLICIES The City of Palm Springs' development policies related to housing are presented in this section. These development policies are established to guide the development, redevelopment and preservation of a balanced inventory of housing to meet the needs of present and future residents of the City. It is the goal of the City to ensure that all residents of the City have decent,safe, sanitary and affordable housing regardless of income. This statement guides the City's actions with respect to housing. The specific goals, policies and actions detailed in this section provide the framework for the City's overall housing program plan. The specific objectives and policies included in this Element are intended to provide a wide variety of programs and tools to implement the City's general goals. Actual programs will be implemented at the discretion of the City in order to meet established objectives. _ The goals and objectives contained in the Housing Element address Palm Springs' identified needs and are implemented through a series of policies and programs. Housing programs define the specific actions the City will take to achieve specific goals and objectives. The Housing Program Plan includes both programs currently in operation and new activities that have been added to address the City's unmet housing needs. foal 4A Td develope n°aacordd�ce with �nsky,bUt7dfeg,eritl enio7r r al' na tlst{yew;, • "$ffordable' qustng to;$xpand'`housng.oppo/tuh7Gesffof;et ¢hts'�F1Crty Objectives 4.1 a. To expand housing opportunities for residents from all economic segments,the City shall aggressively pursue available funding for housing and redevelopment projects, including M6PVr10T> Federal, State, local and private programs, and the use of all Redevelopment Housing Set- Aside Funds. 4.1 b. The City's housing programs shall include housing in all price ranges, including units MCC-If D affordable to households of Very Low, Low,and Moderate incomes. 4.1 c. To facilitate development of new affordable housing,the City shall work with private developers and non-profit organizations by providing incentives, both financial and non- mopll=irLp financial,to reduce project costs in exchange for dedication of a portion of the project as affordable units. 4.1 d. By means of incentives, both financial and non-financial,the City shall strive to meet its 2000-2005 Regional Housing Needs Allocation (SCAG/RHNA) identified needs,focusing on M6Pl>~f4=) the housing opportunities for 383 Very-Low,260 Low, and 289 Moderate income households. 4.1 e. Pursue programs assisting lower income renters through rehabilitation as necessary, of AA__V/ existing rental complexes. The Planning Center Page 93 November 11, 2002 M-9 Ell-,u-n-o2.d,, DRAFT VI. Goals, Policies and Programs Policies 4.1.1 The Community Redevelopment Agency shall annually recommend to the City Council the use of portion of the City's Community Development Block Grant entitlement for the benefit A4PIFlEp, of low and moderate income residents, including affordable housing or related infrastructure in targeted neighborhoods. 4.1.2 The Community Redevelopment Agency shall expand the funds in the Housing Fund in a timely manner,and shall not allow the accumulation of excess unexpended and uncommitted funds. 4.1.3 The City shall utilize public financing tools when available. The Housing Authority of the City of Palm Springs should apply to the State;of California for mortgage revenue bond financing, tax credit allocations for all qualified developers of housing projects, and the California �obiF�E� Housing Finance Agency to provide below market rate mortgage financing for both sales and rental units.The City's objective is to have at least one project with approximately 100 units in the City compete on bond or tax credit financing,or one rental or ownership project utilizing CHFA financing. 4.1.4 The Community Redevelopment Agency shall apply for other state,federal, and private Mdpl pir✓n housing funding programs available and meet an identified local need. 4.1.5 The City and Community Redevelopment;Agency shall assist qualified developers willing to dedicate a percentage of a project as affordable housing by direct financial assistance, including: Writing down the cost of land for the project. ➢ Subsidizing the required off-site improvements for the project by direct payment or assessment district financing or both. Providing low interest or deferred loans for project financing. Providing direct rental subsidies to multi-family property owners to offer units at or below fair market rents as established by HUD. The assistance given shall be determined,on a case-by-case after analyzing the project. Criteria shall include: Percentage of units dedicated as',affordable. Level of affordability. Project costs, including a reasonable rate of return on the private sector investment 4.1.6 The City and Community Redevelopment Agency shall provide non-financial incentives to qualified developers willing to dedicate a bercentage of a project as affordable housing, including: Density bonuses Mop,fiEn "Fast-track" priority processing of planning and building permits Innovative zoning techniques,such as zero lot line,courtyard, lot configurations, or waiver/reduction/modification of at least one development standard. 4.1.7 The City's Community Redevelopment Agency shall continue to conduct a Land-Banking program using available funds to acquirelsites for future development of affordable housing Akio-i Page 9¢ Housing Element Update for the City of Palm Springs DRAFT P�CPS-01.0c 11ftxo, gel rn 11-21-02.41 November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE throughout the period of the Housing Element to plan for future development of affordable housing. 4.1.8 In order to meet the 2000 SCAG/RHNA figures of unmet needs (383 units of Very-Low income housing, 260 units of Low-income,289 units of Moderate income housing, and 570 P/jef7lF�p units of Above Moderate income housing,totaling 1,502 units),the City shall work to facilitate the construction of an average of 200 units a year between 1998 and 2005.As a minimum objective the City and Community Redevelopment Agency shall construct, subsidize or facilitate the construction of approximately 300 new affordable units over the planning period. 4.1.9 The Community Redevelopment Agency shall Utilize the Down Payment Assistance Loan Program to assist up to 30 low income households achieve single family home ownership of units created through infill and self-help programs in the Cottonwood/Chuckwalla, Crossley lv✓ Tract and Desert Highland target neighborhood,and other neighborhoods as requested, by providing second mortgage loans of up to$25,000 per unit in conjunction with CVHC or other non-profit agencies. 4.1.10 The Community Redevelopment Department shall prepare an Annual Housing Progress Report to be submitted to the City Council. 4.1.11 The City Planning and Building Department and Community Redevelopment Agency shall encourage the use of Planned Development density bonuses for those developers willing to Mrsvv set aside a portion of the project as affordable to families of Very-Low and Low-income for rental projects and Moderate income housing for owner occupied projects. 4.1.12 The City's Community Redevelopment Department will oversee the construction of 140-Al affordable rental complexes, as funding is available for assistance and development applications processed. 4.1.13 Consider pursuing a program through the Community Redevelopment Agency, if Set-Aside, HOME, CDBG or other sources of funding are available,for the City of Palm Springs Housing Authority, interested Community Housing Development Organizations (CHDO's) and or/non-profit organizations to purchase and rehabilitate, as necessary, existing multi- family units subject to restrictions that a portion of the units be reserved for lower income households. Such reserved units shall be rented at prices equivalent to 30% of the County median income for very low and low income households. Goal 9B TO,,Coordlnate Wty housing programs wloi other ga�ertaMenjadag�r�p�er�(c�tles A county,state and 4etle'raf),the'prvate sectp►(majai eh{pfoyst ,' �vp §,ere$Itorsj - x'anrf pnva,o flan Objectives 4.2a. The City shall act as lead agency whenever appropriate to coordinate multi-public agency affordable housing projects in Palm Springs. 4.2b. The City shall cooperate with and assist regional, county,state and federal agencies to fully utilize all available programs to meet the City's new housing production goals. The Planning Center Page 95 November 11,2002 PgCPS-010c f,Hm,,E1,,-,ii-u-wno, DRAFT VI. Goals, Policies and Programs • 4.2c. The City shall work with CVAG and major employers to develop regional employers' participation programs where employers contribute to programs to meet the housing needs of their employees. 4.2d. The City shall work with qualified non-profit corporations to meet the City's new housing production goals. 4.2e. Increase potential for a minimum of up to'100 new lower income homeownership AIFN/ opportunities. Policies 4.2.1 The City and Community Redevelopment Agency shall work with the Housing Authority of M1ovi���n Riverside County to ensure all funds allocated to the City of Palm Springs in the joint County- City Mortgage Revenue Bond Pool are expended in a timely manner and on projects which meet the City's identified housing needs. 4.2.2 The City Community Redevelopment Department shall work with the Housing Authority of Riverside County to maximize the use of Section 8 subsidies and vouchers in Palm Springs r AoPi�> a and maintain, at a minimum,the current level of 239 units for the period of 2000-2005. Work with property owners/management companies to encourage expansion of rental properties participating in the program by 10 units per year. 4.2.3 The City shall work with its elected officials to request that the State and Federal government takes an active role in providing affordable housing in Palm Springs. 4.2.4 The City Community Redevelopment Department and the State shall continue to work with the non-profit corporation, Coachella Valley Housing Coalition,to provide self-help housing. MobrFrFv The objective of this program shall be to produce a minimum of 9 single-family units during the period. 4.2.5 The City should maintain a list of mortgage lenders participating in the California Housing €� Finance Agency(CHFA) program and refer builders and corporations interested in developing housing in the City to the program. 4.2.6 Continue to participate in the Pacific Housing and Finance Agency's Joint Powers Authority NON "Lease to Own" program. Target 10 units per year over the planning period,with the first closing to occur in August 2000. 4.2.7 Continue to provide favorable homeownership assistance to low and moderate income households through the County of Riverside's Mortgage Certificate program. Strive for assistance for 10 households over the planning period. 4.2.8 The Community Redevelopment Department should facilitate discussions between developers and local banks to meet their obligations pursuant to the California Community Reinvestment Act (CCRA) providing favorable financing to developers involved in projects designed to provide lower and moderate income housing opportunities. 4.2.9 The City will continue to work with local,lending institutions that finance affordable housing acquisition. • Page 96 Housing Element Update for the City of Palm Springs DRAFT rdcrS-oi O6 raj?Hvo ne er.,,,e 11-11a2✓1r November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE Goal 4C'Zo1Yolt161eiY2rYeryoL` $vs�ngt}ry�e�tb7$et�h��f�VEsltyfloy ® e[s m�#h°roitl�hoClt;t�a„e lffty&Yesj'tle/�f1 f��l iig7ghhbl"Iliso2V3�t��-�i ', �-� � � � °s�tg Objectives 4.3a. The General Plan of the City of Palm Springs shall provide for a mixture of residential densities and types disbursed throughout the Community,including renter and owner occupied housing. 4.3b. The City Planning and Building Department shall encourage the design of innovative residential and mixed-use planned developments that offer a variety of building types. 4.3c. The City shall promote development within Specific Plans or Planned Development Districts that provide a variety of housing types and densities based on suitability of land, including availability of infrastructure,the provision of adequate services and recognition of environmental constraints. 4.3d. Identify specific undeveloped areas and under-utilized properties that are suitable for higher F�Vl( density multi-family, condominium and mixed-use development. 4.3e. The City shall encourage and require energy efficient project designs. Policies 4.3.1 The City Planning Building Department and Community Redevelopment Agency shall review the City's General Plan Land Use Element and zoning to assess the distribution of residential V�ec��Eo densities.This review shall be completed during fiscal year 2001-2002 in conjunction with the drafting of the Affordable Housing Strategy. 4.3.2 The City shall encourage the integration of affordable units into market rate projects. 4.3.3 The City shall encourage infill development and recycling of underutilized properties. Single �oc Fit D family infill shall be focused in Desert Highland and Crossley Tract neighborhoods and in neighborhoods surrounding the Downtown. 4.3.4 Locate higher density, senior and assisted living development in close proximity to public /JF_W transportation,services, and recreation facilities. 4.3.5 Pursue opportunities for creative housing development in lower density land use designations to serve varied segments of the population. Consider creative forms of housing development including: small lot single family subdivisions; cluster courtyard Ab5w detached units; manufactured home parks that allow owner-occupied spaces;factory built housing on permanent foundations; senior housing offering varying forms of assistance and care; mixed-use and Planned Developments geared toward older individuals with no children. 4.3.6 Facilitate development of mixed-use, stand alone or residential units on second floor �Eu/ development within the Downtown and environs. The Planning Center Page 97 November 11, 2002 PkCPS-m 0eD JHo ,su­,11-11-02 Aa DRAFT VI. Goals, Policies and Programs 4.3.7 Identify and acquire,where feasible,vacant infill lots (in addition to those properties already owned by the City in the Desert Highland neighborhood), or provide financial assistance for Mr—W single family development in conjunction with Coachella Valley Housing Coalition, Habitat for Humanity or other non-profits. Strive for 9lunits with CVHC,3 units with other non-profit organizations,and an additional 37 lots in other target neighborhoods. ' 4.3.8 Identify vacant and underutilized candidate sites in the Downtown area, as well as outlying areas where high quality multi-family and condominium or mixed-use development would be Al6y� a catalyst for the area's revitalization and would stimulate additional private investment with the target of providing a minimum of 125 units of housing affordable to lower and moderate income households at market rate. Maximize potential use of vacant CDL-6 properties, as well as M-15 properties. 4.3.9 The City shall seek locations in areas throughout the City such that a concentration of affordable units in one area shall be avoided. 4.3.10 The City Building Division shall require all::new construction meet the latest energy efficiency standards as set forth in Title 24. 4.3.11 Energy conservation improvements such as insulation,evaporative cooling and weather stripping shall be included where applicable in the single-family and rental rehabilitation programs administered by the Community Redevelopment Agency. Goal qD To proy,[dg afford�?ble housfng�for people w�fh special needs, fnolddlpg elderly,- , fie dlsa�itetl,ferrlaledlteaded housefolds,and fhehomeless Objectives 4.4a. The City shall facilitate the construction or acquisition/rehabilitation of senior citizen housing Mapit=i6p in accordance with Federal law when those projects include a portion dedicated to Low- income seniors. 4.4b. The City shall require the inclusion of units accessible to the disabled in all new residential MoP,r=is :- and hotel construction, except single-family homes, in accordance with Federal law. 4.4c. The City shall encourage the development of amenities such as on-site play areas and day care facilities needed by single parent headed households. 4.4d, The City shall work with the Riverside County Department of Community Action, Riverside County Housing Authority, and qualified non-profit organizations to meet the housing needs M6P,Tt 'EYl of the homeless, including emergency shelter and increased affordable permanent housing. 4.4e. Encourage the development of rental units with three or more bedrooms to provide suitable top / housing for large families. Policies 4.4.1 The City Building Division shall incorporate recent changes in Federal law into its Building Code regarding handicapped accessibility. Page 98 Housing Element Update for the City of Palm Springs DRAFT PAPS-ar Oc D. 11-11-02 no, November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE 4.4.2 The City Building Division shall develop informational material that explains accessibility and �J�7N^/ encourage new developers to include basic accessibility features in new homes and multi- family developments. 4.4.3 The City Planning and Building Department shall include review for the appropriateness of lvlepirtir_o play areas,day care facilities, and other family amenities in the process of reviewing all multi- family residential projects. 4.4.4 Continue to contribute to the operating costs of Nightengale Manor, an emergency shelter for the homeless located in Palm Springs,owned by the County Housing Authority and MoPi Fri r_p operated by Catholic Charities,to ensure Nightengale Manor remains operational. 4.4.5 The City's large number of small older hotels and apartment buildings are an excellent resource for future shelter locations.The Community Redevelopment Agency shall work with /vleoi�s>? the Riverside County Housing Authority and qualified non-profit organizations to convert a hotel into an additional transitional housing facility,emergency shelter or SRO. 4.4.6 The City of Palm Springs Fair Housing counselor in the Community Redevelopment Agency shall continue to work with tenants and landlords to resolve conflicts and,where possible, avoid evictions which could result in homelessness.The Community Redevelopment Agency AAapsy�ir—fl shall also work with the Riverside County Department of Community Action and Catholic Charities on their programs to prevent homelessness, including emergency rent and utility payments. 4.4.7 Work with private non-profit organizations and for-profit developers to encourage development of senior housing or acquisition/rehabilitation of existing multi-family units to be converted to senior housing with a portion of the units required to be reserved for N> �h/ households with incomes below 80%of the County median. Identify candidate sites for the development of affordable senior housing projects with the objective of providing a minimum of 50 new affordable senior units by 2005, in addition to the 260 assisted living units proposed. 4.4.8 Encourage non-profit sponsors to make application to HUD Section 202 allocations for construction of rental housing for seniors and handicapped and take all actions necessary to llkw expedite processing and approval of such projects. 4.4.9 The City Department of Planning and Building and CRA shall encourage the development with affordable assisted living rental facilities. Qoal dE �'a�r�pvg�gi m„�fg�tns�arr�ts>�a the prowlsfon ofa`Hof'dable f��uafng,�Sgth= , Objectives 4.5a. The City shall ensure the adequacy of the supply of land available for the full spectrum of residential development, including multi-family. 4.5b. The City shall,whenever feasible,waive, reduce, or defer development fees to facilitate the • development of affordable housing. The Planning Center Page 99 November 11, 2002 PCPS-01O D...fi a;s etr.,,,,1 11-11-02Aa DRAFT VI. Goals, Policies and Programs • 4.5c. The City shall utilize appropriate development and construction standards to reduce housing project costs whenever possible. 4.5d. The City shall assign priority processing to affordable housing throughout the City,housing ��� rehabilitation in which handicapped accessibility improvements are planned,and mixed-use projects in the Downtown. h!o The City shall seek exemptions for qualified affordable housing projects from regional fees Airew such as TUMF, Multi-species Habitat Conservation Programs,etc. Policies 4.5.1 The City Community Redevelopment Agency and Planning Department shall review the City's vacant land inventory and make recommendations to increase the supply of land M°DI rlE f7 available for all types of housing development as part of the drafting of the Affordable Housing Strategy. Rezone as necessary to ensure a balanced inventory. 4.5.2 The Community Redevelopment Agency shall seek out and acquire structures and underdeveloped or underutilized land suitable for redevelopment into residential or mixed- use projects including affordable housing. 4.5.3 Utilize Redevelopment Set-Aside funds to;remove constraints associated with the improvement of infrastructure when necessary to facilitate specific affordable housing projects. 4.5.4 The City Community Redevelopment Agency and other affected departments shall review I the City's development fees and where feasible, recommend reduction of fees or deferred MtoPrriEG payment until occupancy for those projects where the developer dedicates a portion of the project as affordable to lower income households. 4.5.5 The City Community Redevelopment Agency and Planning Department shall review the City's development and construction standards and,where feasible and legally possible, f�oAFi�� modify these requirements to minimize construction costs for projects where the developer dedicates a portion of the project as affordable to lower income households. 4.5.6 Amend the Zoning Code to specify in which selected zones emergency shelters and 05W transitional housing are permitted with a CUP. 4.5.7 Continue to maintain manufactured home park zoning to preserve manufactured home OFEw parks as a valuable resource for affordable unit types. cal l", ct a abJ�tate el�r(pr��ngpad;f g To e° an, �ev$1StfriitfiAr," deferw4atfohnr�fforda eu fYsandtq'ehsure�"i(-hoer4§fn is,safe_andsan_tary. Objectives 4.6a. Continue to use all available Federal, state and local funds to assist housing rehabilitation. • Page 100 Housing Element Update for the City of Palm Springs DRAFT rncvs-w Oc r!H,,,,,,EI-I 11-a-02&, November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE 4.6b. Correct housing deficiencies and code violations through the Neighborhood Revitalization Ma'Al Program to bring substandard units into compliance with City codes and to improve overall housing conditions in the City. 4.6c. Promote increased awareness among property owners and residents of the importance of MIEW property maintenance to long term housing quality. 4.6d. Provide public infrastructure improvements that will enhance community stability and IJ�N attractiveness. 4.6e. Continue to enforce health,safety and zoning codes to eliminate conditions that are Rltiv detrimental to health,safety and general welfare of residents. Policies 4.6.1 Identify substandard housing units in targeted neighborhoods in the City through the Neighborhood Revitalization Program and assist very low to moderate income homeowners d9v✓ with rehabilitation assistance through deferred and/or low interest loans up to$25,000 per unit. Target rehabilitation assistance of up to 40 homeowners per year. 4.6.2 Continue implementation of the newly established Multi-family Rehabilitation program to assist rehabilitation efforts for 200 units between 2000-2002 through low interest/deferred loans. Target rehabilitation assistance to an additional 150 multi-family units over the remaining 2003-2005 planning period. 4.6.3 Identify existing apartment complexes in need of repair and provide either financial assistance per Policy 4.6.2 above, or establish other incentives to encourage the owner to make a substantial investment in rehabilitation and ongoing maintenance. Where appropriate,the development of additional units through a special density bonus provision may be considered as an incentive. 4.6.4 The Community Redevelopment Agency shall administer the Senior Grant Program that is designed to assist very low income senior homeowners or physically disabled owners (non IL/9"V age restricted) with property improvements through grants up to$1,500. Target assistance of 55 senior homeowners per year. 4.6.5 Continue to operate activities that assist in paint and exterior cleanup activities through the Neighborhood Revitalization Program. Solicit home improvement stores and other retail I —YV establishments carrying paint and yard supplies to make donations of materials to the program. 4.6.6 Ensure that currently sound housing is maintained through code enforcement activities of tdW the Neighborhood Revitalization Program. 4.6.7 The City's Department of Public Works shall oversee the repair of streets and sidewalks in A)"I the Desert Highland and Crossley tract target areas. 4.6.8 Provide technical assistance to mobilehome park residents in pursuing MPROP funds, on a X45W request basis. • The Planning Center Page 101 November 11, 2002 ricrs-or oGw./npmn N-rll-l1-oz.d DRAFT VI, Goals, Policies and Programs • �o Continue the Recapture of Neighborhood Program and consider Citywide neighborhood ffµ/ improvement programs. G . I:3�,G � a`: ra '�(odatile Dosing resotikes In%ii�.Clly, �, r �* ` Objectives 4.7a. Preserve the affordability of federal,'state, local and Community Redevelopment Agency subsidized projects identified as "at risk" of conversion to market rate. 4.7b. Assist non-profit and for-profit organizations with the acquisition and preservation of single family and multi-family units for low and moderate income households. Policies 4.7.1 The City Community Redevelopment Agency shall work with HUD, private developers, housing non-profits and the Housing Authority of Riverside County to maintain the affordability of the three subsidized projects in Palm Springs (148 units) at risk of converting to market rate projects, The City shall contact the project owners on an annual basis to determine project status. 4.7.2 The City shall, upon receipt of any notice,of intent by building owners to prepay or opt-out: ➢ Notify HCD of all notices of intent by owners to prepay their mortgages or opt-out of contract. i ➢ Review all LIHPRHA plans, if applicable, and notify all affected tenants of their rights and options. 4.7.3 The City and the Redevelopment Agency shall assist in the preservation of affordability when notified of the intent of the owners of an existing subsidized project to prepay and convert to market rate by the following options: ➢ The use of Housing Set-Aside Funds to assist a housing non-profit corporation to purchase the project Low or no-interest loans for rehabilitation expenses Bond financing ➢ Assistance in arranging other below-market financing Use of HOPE, HOME, CDBG or other Federal or State programs as applicable. 4.7.4 Assist eligible non-profit buyers in acquiring market rate apartments in exchange for a portion of the units to be made available,at rents affordable to households below 80%of the County median. 4.7.5 Investigate the feasibility of acquiring HUD foreclosure homes and offering them to residents �EN/ at prices affordable to low and moderate income households. 4.7,6 Require maintenance of new affordable housing projects through affordability covenants with the project proponent and the Community Redevelopment Agency. Page 102 Housing Element Update for the City of Palm Springs DRAFT PgCps-or 0c o.j xow,q crv„ f r r.u-azA. November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE Goal 4G �o ellhll a e�s�r t rlatl n hoa8 g f i a r, eugion, igr t. l�r ln,„q de �g, rnTly t ltT ��/�e C. @r d p WSWAdk�u hSU;in oRpo�f+. r ail Objectives 4.8a. The City shall affirmatively further fair housing throughout the City. 4.8b. Continue to support fair housing laws and organizations that provide fair housing information and enforcement. 4.8c. Ensure the availability of financing for affordable housing projects. Policies 4.8.1 The City Community Redevelopment Agency shall administer a Fair Housing Program, ' �r under contract with the Fair Housing Council of Riverside County.The City shall ensure a mop" Fair Housing Counselor is available to the citizens of Palm Springs throughout the planning period. 4.8.2 Provide financial assistance from CDBG funds to fair housing organizations. kf W • 4.8.3 Obtain annual CRA reports from local banks and negotiate favorable terms for low and ✓✓ moderate income homebuyers and multi-family project proponents. B. IMPLEMENTATION TOOLS The following table identifies available federal, state and local resources available to the City of Palm Springs for accomplishing its goals and quantified objectives. The Planning Center Page 103 November 11, 2002 r.¢rs-a.ocw,.lr Ih.s ei-111-11-2.A, DRAFT VI, Goals, Policies and Programs TABLE 46 RESOURCES AVAILABLE FOR HOUSING ACTIVITIES CITY OF PALM SPRINGS Program 7 Description Eligible Activities "10calResouices,' `` Palm Springs Funds received from increased property . Land Write Downs/Land Acquisition Redevelopment Agency taxes generated by property . Housing Rehabilitation 20%Set-Aside Fund improvements sponsored by the Neighborhood Revitalization (Code Enforcement) Agency's redevelopment project areas.' . Public Facility and Infrastructure Improvement Programs Twenty percent(20%) of these property . First Time Homebuyers Assistance tax funds must be set aside for the . Rental Rehabilitation development,preservation,or . Mobile Home Rehab Program rehabilitation of affordable housing. . Senior Housing Assistance . Acquisition Rehabilitation Density Bonus The City allows an increase in density to . Density Bonus developers who set-aside at least 25%of their project to low-and moderate-income persons,in conjunction with at least one financial and one development incentive Tax-Exempt Bonds The Redevelopment Agency and the City . Housing Development have the authority to issue tax-exempt bonds. Bond proceeds are used to develop affordable housing • City/Agency Owned If available and appropriate, City or . Housing Land Agency owned land may be made . Community Facilities available Lease Purchase Lease Revenue Pass-Through Obligation . Homebuyers Assistance Program bonds are issued by the Pacific Housing and Finance Agency to fund a lease- purchase program that will assist homebuyers countywide. County of Riverside Housing Improvement Program,Rental . Rental Assistance Resources Rehab Program,Senior Home Repair . Home and Rental Rehabilitation Assistance (minor and enhanced), First Time . First Time Home Buyers Assistance Homebuyers Program, Multi-family Revenue Bonds,and Shelter Care Plus. state'Resources Mortgage Credit Federal tax credit for low-and moderate- First Time Home Buyer Assistance Certificate(MCC) income homebuyers who have not owned a home in the past three years. Allocation for MCC is provided by the State and administered by the County California Department of Low interest loans for the development of Predevelopment Loans Housing&Community affordable housing with non-profit Development agencies Predevelopment Loan Program Page 104 Housing Element Update for the City of Palm Springs DRAFT P iCPs-m ocO a,/u­„q ems, a a-n-W d November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE TABLE 46 RESOURCES AVAILABLE FOR HOUSING ACTIVITIES CITY OF PALM SPRINGS Program Description Eligible Activities Proposition 1A Proposition 1A includes provisions to • Downpayment Assistance establish a Downpayment Assistance • Rental Assistance Program and a Rent Assistance Program using school fees collected from affordable housing projects.Potential buyers or tenants of affordable housing projects are eligible to receive assistance in the form of down-payment assistance or rent subsidies from the State at amounts equivalent to the school fees paid by the affordable housing developers for that project in question. Emergency Shelter Grants awarded to non-profit • Support Services Program organizations for shelter support services Mobile Home Park Funds awarded to mobile home park • Acquisition Resident Ownership tenant organizations to convert mobile • Rehabilitation Program home parks to resident ownership (M Prop) California Housing Below market rate financing offered to • New Construction Finance Agency(CHFA) builders and developers of multiple family . Rehabilitation Multiple Rental Housing and elderly housing.Tax-exempt bonds . Acquisition of Properties(20-150 units) Programs provide below-market mortgage money California Housing Low interest loans for the rehabilitation of • Rehabilitation Rehabilitation Program substandard homes owned and occupied • Repair of Code Violations by lower-income households.City and . Property Improvements non-profits sponsor housing rehabilitation projects. California Housing CHFA sells tax-exempt bonds to provide • Homebuyer Assistance Finance Agency Home below-market loans to first time Mortgage Purchase homebuyers.Program is operated Program through participating lenders that originate loans purchased by CHFA Law Income Housing Tax credits available to individuals and • Rehabilitation Tax Credit(LIHTC) corporations that invest in low-income . New Construction rental housing.Tax credits are sold to . Acquisition corporations and people with high tax liability,of which the proceeds are utilized for housing development Federal Resodree-Entitlement, Community Entitlement program that is awarded to . Section 108 Loan Repayments Development Block the City on a formula basis.The • Historic Preservation Grant(CDBG) objectives are to fund housing activities . Admin. &Planning and expand economic opportunities. . Code Enforcement Project must meet one of three national . Public Facilities Improvements objectives:benefit low-and moderate- . Housing Activities income persons;aid in the prevention or elimination of slums or blight;or meet other urgent needs. The Planning Center Page 105 November 11, 2002 PICPS01000''s,,,,„'ta 11-11-m.a" DRAFT VI. Goals, Policies and Programs TABLE 46 RESOURCES AVAILABLE FOR HOUSING ACTIVITIES CITY OF PALM SPRINGS Program Description Eligible Activities HOME Investment Grant program for housing.The intent of • Multi-Family Acquisition/Rehab Partnership(HOME) this program is to expand the supply of • Single-Family Program decent, safe,and sanitary affordable • CHDO Assistance housing.HOME is designed as a • Administration partnership program between the federal, state, and local governments,non-profitI and for-profit housing entities to finance,, build/rehabilitate and manage housing for lower-income owners and renters Emergency Shelter Annual grant funds are allocated on a Homelessness Prevention Grants(ESG) formula basis.Funds are intended to Essential Services assist with the provision of shelter and Operating Expenses social services for homeless Housing Opportunities Funds are allocated to Riverside County, • Rental Assistance for Persons with AIDS on behalf of all jurisdictions in Riverside • Supportive Social Services (HOPWA) County.Funds are made available • Administration countywide for supportive social services,affordable housing development,and rental assistance to persons with HIV/AIDS. Mortgage Credit Under the MCC Program,first-time Home Buyer Assistance Certificate Program humebuyers receive a tax credit of up to 15%of the mortgage interest paid for the year based on a percentage of the interest paid on their mortgage. This credit typically amounts to$80 TO$125 monthly. This program may he used alone or in conjunction with a Down Payment Assistance Loan. Low-income Housing Program encourages the investment of • New Construction Credit(LIHTC) private capital for the creation of • Housing Rehabilitation affordable rental housing for low-income • Acquisition households.Tax credits are available to individuals and corporations who invest in such projects. s`Ferleral Resources=Competitive Supportive Housing Grants to improve quality of existing Housing Rehabilitation Grant shelters and transitional housing. Increase shelters and transitional housing facilities for the homeless Section 8 Rental Rental assistance program that provides Rental Assistance Assistance a subsidy to very low-income families,) individuals,seniors and the disabled. Participants pay 30%of their adjusted income toward rent. Section 202 Grants to non-profit developers of Acquisition supportive housing for the elderly Rehabilitation • New Construction Rental Assistance , • Support Services Page 106 Housing Element Update for the City of Palm Springs DRAFT PiCPs-oi 0q0.rfil e­,,,ek,,,..„n-n-02 k November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE i TABLE 46 RESOURCES AVAILABLE FOR HOUSING ACTIVITIES CITY OF PALM SPRINGS Program Description Eligible Activities Section 811 Grants to non-profit developers of . Acquisition supportive housing for person with . Rehabilitation disabilities,including group homes, . New Construction independent living facilities and . Rental Assistance intermediate care facilities Shelter Care Plus Provides grants for rental assistance for . Rental Assistance permanent housing and case . Homeless Prevention management for homeless individuals with disabilities and their families Home Ownership for HOPE program provides grants to low . Homeownership Assistance People Everywhere income people to achieve (HOPE) homeownership. The three programs are: HOPE/—Public Housing Homeownership Program HOPE//—Homeownership of Multi-family Units Program HOPE l//—Homeownership for Single- family Homes Section 108 Loan Provides loan guarantee to CDBG . Acquisition entitlement jurisdictions for pursuing . Rehabilitation large capital improvement or other . Home Buyer Assistance projects.The jurisdiction must pledge its . Homeless Assistance future CDBG allocations for loan repayment.Maximum loan amount can be up to five times the entitlement jurisdiction's most recent approved annual allocation.Maximum loan term is 20 twenty years. Private'ResourCes Community Home Buyer Program—Fixed . Homebuyer Assistance rate mortgages Community Home Improvement . Homebuyer Assistance/Rehab Federal National Mortgage Program—Mortgages for both Mortgage Association purchase and rehabilitation of a home (Fannie Mae) Fannie Neighbor—Under served low- . Expand Home Ownership for Minorities income minorities are eligible for low down-payment mortgages forthe purchase of single-family homes California Community Non-profit mortgage banking consortium . New Construction Reinvestment that pools resources to reduce lender risk . Rehabilitation Corporation (CCRC) in financing affordable housing.Provides . Acquisition long term debt financing for affordable multi-family rental housing Federal Home Loan Direct subsidies to non-profit and for- . New Construction Bank Affordable Housing profit developers,and public agencies for . Expand Home Ownership for Lower Income Persons i Program affordable low-income ownership and rental projects The Planning Center Page 107 November 11, 2002 vices-m ocm,J,N..... mue„nr-u.ozal, DRAFT VI. Goals, Policies and Programs TABLE 46 RESOURCES AVAILABLE FOR HOUSING ACTIVITIES CITY OF PALM SPRINGS Program Description Eligible Activities Savings Association Statewide loan pool that provides thirty . Construction Mortgage Company year permanent loans for affordable . Redevelopment (SAMCO) housing projects, serving persons earning up to 120%of the median income. Source: The Planning Center:1999 C. HOUSING PLAN SUMMARY An important component of the Housing Element is the City's quantification of what it will accomplish during the current planning period. This is accomplished with a statement of the community's goals, quantified objectives, and policies relative to the maintenance, preservation, improvement, and development of housing. This analysis must include a program which sets forth a five-year schedule of actions the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element, including: Improvement and conservation of housing, including affordable housing stock. Sec.65583(b)& Sec.65583(c)(4); Production of housing as set forth in the goal,and objectives Sec.65583(b); Assist in the development of housing to meet;the needs of low- and moderate-income households. Sec.65583(c)(2); Address, and where possible, remove governmental constraints Sec.65583(c)(3); Adequate sites for housing Sec.65583(c)(1); Adequate provision of housing for existing and projected needs, including regional share, for all economic segments of the community Sec.65583(c); Promotion of equal housing opportunities for all persons. Sec.65583(c)(6); Preserve assisted housing at risk of converting to non-low income uses.Sec.65583(c)(6); Table 49 summarizes the Housing Action Plan for thee,planning period. Page 108 Homing Element Update for the City of Palm Springs DRAFT v�cas-ol oc�olh1A„„„ Etmen11)-11-02 A, November 11, 2002 • City of Palm Springs HOUSING ELEMENT UPDA TE TABLE 47 HOUSING PLAN SUMMARY Potential Funding Responsible Housing Program Program Intent Plan Objective (#units to be Assisted) Source Agency Time Frame NEW AFFOROABLEHOUSING'OPPORTUNITIES Community Works with developers, Utilize CDBG funds for affordable housing CDBG;Set-Aside Funds; Community • On-going Redevelopment CHDO's,and non-profit assistance or related infrastructure in targeted HOME;HUD Programs; Redevelopment Department organizations on urban infill neighborhoods CHFA;State Programs Agency projects by providing Continue to stimulate private developer and non- Palm Springs . On-going incentives,both financial and profit entity efforts in the development and Housing Authority non-financial,to reduce financing of housing for lower and moderate Planning Building project costs in exchange for income households,utilizing the Redevelopment Department dedication of a portion of the Set-Aside Housing fund if available,or other project as affordable units to resources available such as HOME funds, meet the RHNA allocations of California Housing Finance Agency single family very low,low and moderate and multi-family programs, HUD Section 202/811 income household need. loans, and HOPE II and III Homeownership programs,to partially support the project, backed by development agreements stipulating affordability for a minimum of 30 years or whatever term is appropriate as stipulated by the assistance program. • The Housing Authority shall apply to the State for One tax credit, CHFA, or mortgage revenue bond financing,tax credit Bond Financed project allocations and or CHFA programs with the by 2005. objective of sponsoring one project with bond or tax credit financing or one CHFA project. • Assist qualified developers willing to dedicate a On-going portion of the project as affordable by offering direct financial assistance including: 1. Writing down the costs of land for the project 2. Subsidizing the required off-site improvements for the project by direct payment or assessment district financing or both 3. Providing direct rental subsidies to multi-family property owners to offer units at below fair market rents as established by HUD 4. Providing low interest loans for financing The Planning Center Page 109 November 11, 2002 P-ICPS-arOnD,/ a-,,.111-r1-n2A, DRAFT VI. Goals, Policies and Programs TABLE 47 HOUSING PLAN SUMMARY Potential Funding Responsible Housing Program Program Intent Plan Objective(#Units to be Assisted) source Agency Time Frame • Offer non-financial incentives to qualified On-going developers willing to dedicate a percentage of the project as affordable,including: 1. Density bonus 2. Fast track processing 3. Innovative zoning techniques • Require maintenance of affordable new housing On-going per conditions projects in the City through affordability covenants of approval between the project proponent and the Community Redevelopment Department • Oversee the construction of affordable rental units • Garden Springs-2004 Brentwood Homes-2002 Site Acquisition/Land Acquire sites(or assist with Identify and acquire,assist with funding,or offer Set-Aside Funds,HOME City of Palm Springs On-going by 2004 Banking funding,land write down of City owned land,where feasible,vacant in-fill lots Funds -City-owned property,or _ in the Downtown,lots in the Desert Highland,the - Community-_ zoning issues)for affordable Cottonwood/Chuckwalla and Crossley Tract Redevelopment housing in conjunction with neighborhoods,and elsewhere in the City for Agency non-profits,or for-profit single family development in conjunction with the developers. Infill and CVHC Self-Help programs,and multi- family development for seniors and/or affordable housing Density Bonus Provide incentives for • Accommodate requests from developers for General Fund City of Palm Springs Ongoing. Discuss with development of low income application in any R zone or Planned Development Set-Aside Funds Planning Department developer when pre- housing through provision of District Other resources for application is filed or a density bonus. • Provide incentives for development of low income incentives Community interest in development is housing throuah provision of a density bonus. Redevelopment expressed. Actively promote its use in Redevelopment Project Agency Areas,in conjunction with mixed-use projects or stand alone residential in the Downtown,for senior housing,and within Planned Developments and Specific Plans. Annual Housing TEnsure that the Housing Develop monitoring program and report annually General Fund and CRA Annually Progress Report Element retains its viability to the City Council on implementatim progress. Departmental Budget and usefulness through Forward the monitoring report to HOD annual review and reporting Page 110 Housing Element Update far the City of Palm Springs DKA0 r es or.a�o./xau.a�-mT »->>ozr • November 11,206 • • city of Palm Sprigs HOUSING ELEMENT UPDA TE TABLE 47 HOUSING PLAN SUMMARY Potential Funding Responsible Housing Program Program Intent Plan Objective (#Units to be Assisted) Source I Agency Time Frame Multi-family Pursue programs assisting Consider pursuing a program through the Set-Aside Funds, CUBE, Community Review funding options and Acquisition lower income renters through Community Redevelopment Department, if RDA HOME, Bond Financing Redevelopment program potential by 2002. acquisition of existing rental Set-Aside, COBS, HOME or other sources of Agency complexes. funding are available,for the City,through If approved,implement interested CHDO's and/or non-profit program by 2003. organizations,to purchase and rehabilitate,as necessary,existing multi-family units,subject to Target one project in restrictions that a percentage of units be reserved negotiation by 2005. for lower income households.The affordability covenants would be in effect for not less than 30 years, and that 50%of the units would be affordable to very low income households. Multi-family Mortgage Increase and preserve supply Target at least one multi-family project with an Bond Financing County of Riverside Apply annually for Revenue Bond of rental and ownership units average of 75 to 100 units (or one project with tax completion of project by Financing affordable to low and credit financing, or CHFA) 2005 moderate income households Pacific Housing and Provide homeownership Continue to participate in the Pacific Housing and Bond Financing Community Ten households assisted Financing Agency Joint opportunity through lease to Finance Agency to implement the Lease to Own Redevelopment annually. Powers Authority own program with very low Program that provides down payment assistance Agency Lease to Own Program downpayment requirements. and closing costs for eligible households. Strive Pacific Housing and for 10 units per year. Financing Downpayment Provide assistance to low Utilize the Down Payment Assistance Loan Set-Aside Funds,HOME Community On-going. Assistance Loan income individuals to acquire program to assist up to 50 low income Redevelopment Program rehabilitated single-family households achieve single family home ownership Agency CVHC products by 2002. units in targeted of units created through the Infill/Self-Help neighborhoods. Also provide programs in the Cottonwood/Chuckwalla,Desert assistance in the form of Highland and Crossley Tracts target second loans forthe neighborhoods, and other neighborhoods as acquisition of homes requested, by providing second mortgage loans of produced through Self Help up to$25,000 per unit in conjunction with CVHC and Infill housing programs. or another non-profit or developer willing to construct units for lower income households. The Planning Center Page I I I November 11, 2002 PICPS-01O6D0flrHmo,Eh..,vl1-u.o2A DRAFT VI. Goals, Policies and Programs TABLE 47 HOUSING PLAN SUMMARY Potential Funding Responsible Housing Program Program Intent Plan Objective(#Units to be Assisted) source' Agency Time frame Low-Income Housing— Increase the supply of low Support the use of the State Low Income Housing State Tax Credit Administered by DOF; As requested by Non-Market Rate income rental units. Inform Tax Credit Program by private investors and Allocation Committee City of Palm Springs investors and Housing in Market developers and non-profits corporations,where appropriate,to create (LIHTC); Planning and Building developers. Rate Rental Projects about LIHTC. financial incentive for long term developer General Fund Department; (LIHTC) compliance with affordability restrictions.Strive Community for one project with 75-100 units(or one project Redevelopment utilizing bond financing or CHFA). Agency; • Identify sites suitable for projects,make sources Private Investors and One tax credit or bond of funding known and available,and take Developers financed project by processing/promotional actions as necessary,if 2005. funding is available and interest exists. f COOROINATE GHI`R OUSI NG;t'RO RAtAS ` 'x� F , �. ;,�.r s t '. t >: r3r ?:: .'1 " ;>x s:3.7:e County of Riverside Maintain and increase supply . Work with the Housing Authority to ensure all State of California Riverside County . On-going Housing Authority and of housing units for low and funds allocated to the City in the joint City/County Housing Authority Economic---------- -moderate-income renters and Mortgage Revenue_Bondfinancing pool are- - -------------- Development Agency homeowners utilizing County expended to meet the City's RHNA needs. Programs of Riverside resources. . Maximize use of Section 8 vouchers in the City to HUD EDA . Annually maintain 239 units. Strive to increase vouchers by 10 per year. . Continue to provide homeownership assistance . 2 per year through the County's Mortgage Certificate Program. Strive for assistance to 10 units over the planning eriod. tSUPPORT-AV'ARIETYrOFHOUSINO'TYPES'st .;' 'r..; v:;a * '•r:.." '_ + csm : , ,-_., _� ^. - _ ..-, s Land Use Element/ Provide a range of residential . Review and update General Plan. General Fund City of Palm Springs . 1999-2000 Zoning Code, Site development opportunities . Pursue development opportunities in lower General Fund Planning and Building . On-going Availability through land use and zoning density land use designations Department designations,and specific . Review and rezone non-residential land or General Fund . 2000—on-going plan implementation. Provide underutilized land. Community adequate sites to . Consider offering City owned land to builders at a Set-Aside Funds Redevelopment . As an incentive on a per accommodate future growth reduced rate(land write down)for affordable Agency project basis in the City. housing. Focus development activities within entitled General Fund • Ongoing Specific Plans,Planned Developments and within the vicinity of the Downtown. Page 112 Housing Element Update for the City of Palm Springs DR9 P:1CP5-0L0L�rc,S favu,nq <,n-tr.au. 0 November 1], 201 • i i City of Palm Springs HOUSING ELEMENT UPDA TE TABLE 47 HOUSING PLAN SUMMARY Potential Funding Responsible Housing Program Program intent Plan Objective(#Units to be Assisted) Source Agency Time Frame • Maximize potential use of vacant CDL-6 and M-15 • On-going parcels. Identify specific underdeveloped areas and General Fund;CDBG; • 2000 underutilized properties that are suitable for higher Set-Aside Fund density multi-family,condominium and mixed-use development which would be a catalyst for revitalization and would stimulate additional private investment for 150 units of market rate housing affordable to households with incomes above 80%of the County median. Encourage infill and recycling of underutilized Target activity by 2003. residential and commercial properties in the downtown and surrounding neighborhoods. Mixed Use Promote the development of • Promote development of 28 units of mixed-use, General Fund,Set-Aside City of Palm Springs Begin active promotion by mixed-use projects with stand alone residential,or residential on the Funds,Tax Credits Planning Department 2003. residential components at second floor above commercial multi-family higher densities within the projects in the Downtown. Community Downtown as appropriate. Redevelopment Agency Self-Help Housing— Provide ownership • Continue relationship with CVHC to produce 9 Set-Aside funds,CDBG, Community By 2002 Coachella Valley opportunities to lower income single family units during the planning period HOME Redevelopment Housing Coalition households Agency Community Provide lower income • Facilitate discussions between developers and General Fund,Set-Aside Community On-going Redevelopment housing opportunities local banks to meet their obligations pursuant to Funds,CCRA,CHFA Redevelopment Department—Private through full utilization of all the California Community Reinvestment Act Agency Developers and Local available funding programs to (CCRA)providing favorable financing to Funding Resources meet new housing production developers involved in projects designed to goals. provide lower and moderate income housing opportunities. The City should maintain a list of mortgage Create list by 2001. lenders participating in the California Housing Maintain annually. Finance Agency(CHFA)program and refer program to builders or corporations interested in developing housing in the City. The Planning Center Page 113 November 11, 2002 races-ai ono.h now,,erg,1 3-11�2,& DPAFT VI. Goals, Policies and Programs TABLE 47 HOUSING PLAN SUMMARY Potential Funding Responsible Housing Program Program Intent Plan Objective(#Units to be Assisted Source I Agency Time Frame Site Acquisition/Infill Acquire sites,or assist with In addition to the lots already under ownership by Set-Aside funds,CDBG Community 10 lots yearly Program funding or land write down, the City in the Desert Highland neighborhood, Redevelopment for affordable housing in identify and acquire,where feasible,or assist in Agency conjunction with non-profits the funding of vacant infill lots for single family or for-profit developers. development in the Cottonwood/Chuckwalla neighborhood(and other neighborhoods as available)in conjunction with the Self-Help and Infill programs,or other programs affiliated with other non-profit or for-profit organizations. Strive for 9 Self Help,3 units in conjunction with Habitat for Humanity,and 37+ Infill units. Accessory Apartment Increase affordable housing Target approval of two units over planning period. General Fund Planning and Building Advertise annually Ordinance opportunities to senior and Department 2 units over planning period lower income households Title-24 Admin Code_----Require compliance in new - . -Require new constructionto meet the latest_- General Fund_- Planning an_d_Buiiilding _ongoing_- -------------------- -- ------and Energy construction and energy efficiency standards as set forth in Title 24 Department Conservation rehabilitation Require energy conservation improvements such Measures as insulation,weather stripping and evaporative cooling in the single family and multi-family rehabilitation programs. -PROVIDE HOUSINQ°FOR SPECIAL NEEDS Housing Authority of Provide housing opportunities . Continue to financially support the activities of the Set-Aside Funds Community On-going Riverside/Non-Profit for the homeless. Riverside County Housing Authority and Catholic HUD ESG funds,CDBG Redevelopment Homeless and Charities in the operation of Nightengale Manor. Agency Supportive Housing . Work with the Housing Authority and other private Riverside County . Between 2003-2005 Providers and non-profit homeless and supportive housing Housing providers in the vicinity to convert an existing Authority/Catholic hotel into a shelter or SRO.Target 25 units Charities Work with Riverside County Department of HUD for ESG funds . On-going Community Action and Catholic Charities on their Palm Springs Housing programs to prevent homelessness,including Authority emergency rent and utilities payments. Page 114 Housing Element Update for the City of Palm Springs DRAT P1 P5-01.0 D./Hammel£!-rn,ll-IM2do, November 11, 20002 City of Palm Springs HOUSING ELEMENT UPDATE TABLE 47 HOUSING PLAN SUMMARY Potential Funding Responsible Housing Program Program Intent Plan Objective(#Units to be Assisted) Source Agency Time Frame The City's Fair Housing Counselor shall continue • On-going to work with tenants and landlords to resolve conflicts and avoid evictions that could result in homelessness. Elderly or Handicapped Provide housing and related . Identify candidate sites for the development of HUD Section 202 Community . By 2001 Housing facilities for the elderly and affordable senior housing projects with the Program; Redevelopment handicapped. Support all objective of providing 50 units in addition to Bond Financing;Set- Agency viable non-profit entities projects underway. Aside funds; seeking Section 202 funding. . Encourage non-profit sponsors to make General Fund;McKinney City of Palm Springs . On-going,as requested application for HUD Section 202 allocations for Act(Super NOFA) Planning and Building construction or acquisition/rehabilitation of rental funding;Private Lending Department housing for seniors and the handicapped and take Institutions all actions necessary to expedite processing and approval of such projects. Oversee the construction of 120 units of • 1998-2003 affordable assisted living facilities. Incorporate recent changes in federal law into • Annually review Building Code regarding handicapped accessibility Large Households Reduce overcrowded . Review multi-family residential developments for General Fund Planning and Building On-going conditions and provide appropriateness of play areas,day care facilities Department amenities for households and other family amenities CRA with children R_EMOVAt:OF;GOVERNMENTALCONSTRAINTS a Priority Processing for Facilitate production of The City shall prioritize development processing General Fund Planning and Building On-going as applications Affordable Housing or affordable housing. Minimize time of applications for new construction or Department are received Special Features project holding costs. Assign rehabilitation of housing for lower and moderate priority processing to income households and seniors,handicapped affordable housing,housing units and mixed-use/residential infill In the rehabilitation in which downtown. handicap accessibility improvements are planned, senior projects and mixed use in Downtown The Planning Center Page 115 November 11, 2002 P.1cPS-010o .hHo fnphmmr -2.d'r DRAFT V. Goals, Policies and Programs TABLE 47 HOUSING PLAN SUMMARY Potential Funding Responsible Housing Program Program Intent Plan Objective(#Units to be Assisted) Source Agency Time Frame Land Availability Assure and adequate supply • Review vacant land inventory and make General Fund Planning and Building 2000-2001 as part of of land to meet the RHNA recommendations to increase supply available for Department Affordable Housing needs allocation all types of development.Rezone as necessary. CRA Strategy. • Maximize potential use of vacant CDL-6 and M-15 parcels. • The Community Redevelopment Department shall 2000-2005 seek out and acquire structures and underdeveloped or underutilized land suitable for redevelopment into residential or mixed-use projects Modify Development Provide incentives to • Review development fees and where feasible, General Fund Planning and Building Establish incentive levels Fees developers of recommend reduction of fees or deferred payment Department and conditions 2001 affordable/senior housing or until occupancy for projects with affordable units. CRA other housing addressing • Utilize set-aside or CDBG funds to reduce Ongoing implementation — — special needs:-Minimizes--- - - constraints associated with infrastructure project holding casts. improvements to facilitate specific affordable housing projects Modified Zoning Code Review and update Zoning Modify zoning code to specify that emergency General Fund Planning and Building . Following vacant land Code to ensure consistency shelters and transitional housing are permitted Department inventory/GP analysis with the land Plan. Amend as with a CUP in selected zones. necessary to provide for • Continue to maintain mobilehome park zoning to . On-going flexibility in site planning. preserve mobilehomes as a valuable resource for Incorporate the use of affordable housing types. innovative construction . Review development and construction standards . Following vacant land techniques,design standards and where feasible and legally possible,modify inventory/GP analysis. and energy conservation requirements to minimize construction costs for measures in new housing projects with affordable housing components. developments into . Consider,through the Planned Development • Following vacant land development standards. process,reductions in parking requirements for inventory/GP analysis. those projects designed to serve low income households. Page 116 Housing Element Update for the City of Palnt Springs DIti-16 PiOS-01XG rlffHmm Elmmm11-11-021.a- • November 11, 20 City of Palm Springs HOUSING ELEMENT UPDATE TABLE 47 HOUSING PLAN SUMMARY Potential Funding Responsible Housing Program Program Intent Plan Objective(#Units to be Assisted) Source' Agency Time Frame REHABILITATE-HOUSING THROUG OUTTHE;CITY Neighborhood Preserve existing stock and • Identify substandard single family and multi-family CDBG,Set-Aside Planning and Building Annually Revitalization Program correct minor and deferred housing units in targeted neighborhoods Funds, General Fund Department repairs and code . Utilize Single Family Rehabilitation program loans . 40 single family per year. enforcement items using the of up to$25,000,and Senior Grant program to Community 55 senior repairs per Single Family and Multi- rectify identified conditions.Target 200 single- Redevelopment year. family Rehabilitation family units over planning period. Agency programs,Senior Grant and . Continue implementation of multi-family . 200 units by 2002.150 any other funds to assist rehabilitation activities to assist rehabilitation Public Works units 2003-2005. housing rehabilitation. activities for 200 units between 2000-2002 Department through low interest,deferred loans. Target assistance to an additional 150 units over the remaining 2003-2005 planning period. Provide either financial assistance to multi-family Establish incentives by projects or establish other incentives to 2001. encourage a substantial investment in rehabilitation and on-going maintenance. Where appropriate,the development of additional units through a special density bonus provision may be considered as an incentive. • Ensure that currently sound housing is maintained • On-going through code enforcement activities of the Neighborhood Revitalization Program. • Repair 2,100 Mear feet of streets and sidewalks • By 2005 within the Desert Highland and Crossley Tract target areas. Senior Grant Program Assist very low income • Provide grants up to$1,500 for property CDBG,Set-Aside Funds Community Annual funding for 55 senior homeowners or improvements for 55 households per year. Redevelopment households. disabled owners (no age Agency restriction)with property improvements. Mobile Home Park Preserve quality of . Provide technical assistance to mobile home park HCD HCD As needed Assistance mobilehome parks. residents in pursuing Mobile Home Park Community Assistance Program(MPROP)funds, on a request Redevelopment basis. Agency The Planning Center Page 117 November 11,2002 P w9-01.0G�01 h Ho iq EV-111-II-02 a� DRAFT VI. Goals, Policies and Programs TABLE 47 HOUSING PLAN SUMMARY Potential Funding Responsible Housing Program Program Intent Plan Objective(#Units to be Assisted) Source Agency Time Frame PRESERVE:AFFCIRDABLF QU31NGFiESDUHC�5, ,r A ', .: -. ;;':;Rt s:<"ta. F,_ t .. 6 u 1; s t ' . p�. Z). Preservation of Conserve affordable housing Conserve the 148 units at risk of losing Set-Aside funds Community Contact project owners Existing and Future in the City at risk of affordability controls during the 2000-2005 HUD;CDBG Redevelopment one year prior to Affordable Units converting to market rate planning period utilizing:Set-aside funds;low or Agency expiration of affordability no interest loans for rehabititationlacqulsition by HUD covenants non-profits or other organizations;bond financing; assistance in arranging other financing resources; use of federal,state and local programs • Contact owners of the three projects at risk of converting to market rate on an annual basis to determine status. • Assist eligible non-profit buyers acquire market Target one project by rate apartments,and rehabilitate as necessary, 2005. where a proportion of the units would be required ----- to be reserved for lower income households. — - - Target one protect with 50-75 units. ---- -- ---- - - • Monitor status of all units with affordability On-going annually. covenants. • Require maintenance of new affordable housing Per conditions of projects through affordability covenants between approval for 30 years. the project proponent and the Community Redevelopment Department. HUD Foreclosure Preserve a valuable single Investigate the feasibility of acquiring HUD Set-Aside Funds,HOME Community Determine feasibility 2001 Homes family housing resource foreclosure homes and offering them to Redevelopment Acquire Homes between households with incomes below 80%of the Agency 2002-2005 County median. Strive to acquire 5 homes during HUD the planning period. Page 118 Housing Element Update for the City of Palm Springs DRAFT PICAS-0].OG1DrhH,—,EI-111-11A2dx • November 11,2002 • • City of Palm Springs HOUSING ELEMENT UPDATE TABLE 47 HOUSING PLAN SUMMARY Potential Funding Responsible Housing Program Program Intent Plan Objective(#Units to be Assisted) Source' Agency Time Frame #QUALiHOUSING OPPORTUNITY`.- q p Financially support the activities of the Fa Equal Housing Compliance with Federal pp it CDBG Riverside County Fair Services provided as Opportunity Housing Act. Provide tenant Housing Council of the County of Riverside and Housing Council requested rights assistance. Investigate other fair housing organizations. discrimination complaints . Coordinate housing actions with social service • On-going and provide tenant/landlord agencies and support efforts of organizations mediation, dedicated to working toward elimination of discrimination of housing. Require that new development meets the ADA . On-going requirements. • Support local private and non-profit groups and County of Riverside . On-going the County of Riverside Housing Authority in Housing Authority, addressing the housing needs of the homeless non-profits and other disadvantaged groups. • Obtain annual CRA reports from local lenders and CCRA • On-going negotiate favorable loans for low and moderate income homebuyers and multi-family projects 'Identifies potential sources of funding. Listing of a particular funding source of a particular program does not connote that it has been allocated or appropriated as a source of funding for such program. The Planning Center Page 119 November 11, 2002 recaS-or,oc�=h H,,o,El=i1-1r-oz.&, DRAFT VI. Goals, Policies and Programs This page intentionally left blank. Page 120 Houszng Element Update far the City of Palm Springy DRAFT PiCPS-uI On011 INI.,rr 11-oz nog November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE VII. QUANTIFIED OBJECTIVES State Housing Law requires that each jurisdiction establish the maximum number of housing units that will be constructed, rehabilitated, and preserved over the planning period. The Quantified Objectives for the Housing Element reflect the planning period from July 1, 1998 to June 30, 2005. It is important to note that while the Quantified Objectives of the RHNA are required to be part of the Housing Element and the City will strive to obtain these objectives, Palm Springs cannot guarantee that these needs will be met give limited financial and staff resources, and the increasing gap in affordability of housing resources and incomes. Satisfaction of the City's regional housing needs will partially depend on the cooperation of private funding sources and resources of the State, Federal and County programs that are used to support the needs of the very low, low and moderate income households. Additionally, outside economic forces heavily influence the housing market. State law recognizes that a locality may not be able to accommodate its regional fair share housing need. The Quantified Objectives assume optimum conditions for the production of housing. However, environmental, physical and market conditions exert influence on the timing, type and cost of housing production in a community. A. NEW CONSTRUCTION Table 48 contains the quantified objectives that will be used as guidelines toward meeting the City of Palm Springs' new construction objectives for the 1998-2005 planning period, and compares them to the fair share established by the RHNA methodology. Quantified objectives for new construction are based on the following factors and assumptions: City records of units completed between 1996 and 2000; Entitled projects in the pipeline currently either under construction or awaiting Planning Commission review and approval, or projects which have been the subject of negotiation with the City but for which permits are pending; Potential projects for which builders, developers, or non-profit entities have expressed interest in pursuing but no activity in terms of filing permit applications, or negotiations with the City have occurred at this point; Potential units established as targets by the 2000-2005 Program Plan utilizing federal, state or local funding options, such as senior units and multi-family units utilizing either bond, CHFA or tax credit financing assistance, and; Potential market rate units (with yet undetermined builders, developers or other entities) based on past development trends. Based on the achievement of the above assumptions and factors, the City should meet or exceed its RHNA allocations in all income categories except for the very low income group. The City's vacant land inventory, however, indicates that there is ample land zoned to accommodate the construction of very low income housing. In the event that some or all of the assumed potential units based on past trends, and/or targeted objectives established on availability of federal, state or local funding resources assistance are not achieved, the City will still make substantial progress toward meeting its fair share The Planning Center Page 127 November 11,2002 r kCPS-010G12..I/..,Pm n-u-02 A DRAFT VII. Quantified Objectives RHNA allocations. The objectives for a proportion of the low, as well as the moderate and above moderate income groups are anticipated to be met through market rate new construction. The objectives for the very low income group are met under the assumption that significant involvement of the Community Redevelopment Agency is anticipated',in these objectives. It should be noted that the exact number and affordability distribution for units mey vary from those specified in the tables. TABLE 48 NEW CONSTRUCTION HOUSING OBJECTIVES 1998-2005 # Very Unit Type/Description Units Low Low Moderate Upper Single Family Dwellings Units Completed in 1998-2000 169 44 125 Infill,Self-Help/Non-Profits 50 14 35 Tracts Under Construction or Pending PC 146 146 Approval Potential Market Rate Tracts' 668 30 278 360 Second Units 2 2 Subtotal 1,034 14 67 322 631 Multi-Family Dwellings Units Completed 1998-2000' 10 10 Mixed-use Downtown 28 14 14 Vista del Monte 57 57 • East Palm Canyon Apartments 104 50 54 Brentwood Homes Assisted Living 120 120 Garden Springs 60 60 Tax Credit/Bond Financing/CHFA too 20 80 Potential Market Rate Multi-Family 125 100 25 Senior Units 50 50 Hotel Conversion to SRO or Transitional 25 25 Housing Subtotal 679 332 244 103 Number of Units Expected to be Added to 1,713 346 311 125 Ill Housing Stock Fair Share Needs Allocation 1,502 383 260 289 570 'Includes potential projects under consideration for which applications have not yet been submitted,potential projects for which discussions with potential developers6nvestors have occurred or interest has been indicated to City,and an assumed 100 unit tract(s)based on past years!construction trends. Includes both resort attached units and condominiums B. CONSERVATION OF EXISTING"AT RISK" UNITS 148 assisted units will be at risk of losing their use restriction between 2000-2005. The objective of the Housing Element is the preservation of the 148 units eligible to convert to market rate located in the Rancheria Del Sol, Sunnyview Villas, and Seminole Garden Apartments. C. REHABILITATION The Neighborhood Revitalization Program, primarily utilizing Redevelopment Set-Aside funds and CDBG • funds,will address the rehabilitation of housing units;owned and/or rented to lower income households Page 122 Housing Element Update for the City of Palm Springs DRAFT v.rcrs-or.ocw.h xou,s er m;„,n-n-oz.d,, November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE in the City. It is assumed that the majority of moderate and above moderate income households will rehabilitate units as needed through private efforts. Table 49 summarizes the quantified objectives for the planning period. TABLE 49 PRESERVATION/REHABILITATION OBJECTIVES 1998-2005 Very Low Low Program Income Income Moderate Total Single Family Rehabilitation Loans 65 75 60 200 Senior Grants 275 275 Multi-family Rehabilitation 175 175 350 Acquisition/Substantial Rehabilitation 38 37 75 Preservation of At-Risk Units 148 148 HUD Foreclosure Homes 5 5 TOTAL 526 292 235 1,053 D. FINANCIAL ASSISTANCE PROGRAMS Table 50 contains the quantified objectives for implementing the City's financial assistance programs for the 1998-2005 planning period. TABLE 50 FINANCIAL ASSISTANCE OBJECTIVES 1998-2005 Households to be Assisted Program Very Low Low Moderate Total First Time Homebuyer Program 50 50 Mortgage Credit Certificates in 10 Section 8 Rental Assistance 239 239 JPA Lease to Own 20 30 50 Total 289 30 30 349 Table 51 summaries the comprehensive objectives for the City of Palm Springs by income category. TABLE 51 CITY OF PALM SPRINGS QUANTIFIED OBJECTIVES SUMMARY 1998 -2005 Quantified Objective New Construction Rehabilitation Assistance Total RHNA Very Low Income 346 526 289 1,161 383 Low Income 311 292 30 633 260 Moderate Income 425 235 30 690 289 Above Moderate Income 631 631 570 Total 1,713 1,053 349 3,115 1,502 The Planning Center Page 123 November 11, 2002 rIces-01.Oem,,,f,H—,Lr,urz,,,r4u-02 A, DRAFT VII. Quantified Objectives This page intentionally left blank. Page 124 Housing Clement Update for the City of Palm Springs DRAFT a e7P5-02.0eIu,/u„,,,,i El ,,,11 11.m A, November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE TABLE A-1 COMPREHENSIVE FEE SCHEDULE PLANNING & BUILDING-BUILDING Building Permits (include valuation for electrical,plumbing and mechanical) 35.00 Minimum Fee,plus (Add fees for Planning Division review when applicable. Administrative Fee See Planning Division: Plan Checking Fees) Fee Refunds 1. The building official may authorize the refunding of any fee paid hereunder which was erroneously paid or collected. 2. The building official may authorize the refunding of not more than 80%of the permit fee paid when no work has been done under a permit issued in accordance with this code. 3. The building official may authorize the refunding of not more than 80%of the plan review fee paid when an application for a permit for which a plan review fee has been paid is withdrawn or canceled before any plan reviewing is done. 4. The building official shall not authorize the refunding of any fee paid, except upon written application filed by the original permitted not later than 180 days after the date of fee payment. Permit Issuance Administrative Fee 15.00 Per permit,plus Applicable (building, electrical, mechanical,plumbing,&miscellaneous) Permit Valuations Valuation Fee Schedule 100 to 50.00 total valuation 35.00 Minimum Valuation Fee 501.00 to 4000.00 Minimum Valuation Fee 3500 First 500 15.00 Plus Each additional 100 or fraction thereof,to and including 2,000.00 2.00 2,001.00 to 25,000.00 First 2,000 45.00 Plus Each additional 1,000.00 or fraction thereof,to and including 25,000.00 6.50 25.001.00 to 50,000.00 First 25,000 45.00 Plus Each additional 1,000.00 or fraction thereof,to and including 50,000.00 9.00 Plumbing Permit Fees Permit Issuance Administrative Fee 15.00 Each permit,plus any of the following: Minimum Plumbing Fee 35.00 Or the following, whichever is greater: Unit Fee Schedule Atmospheric type vacuum breakers (not included in Item 2) 1 to 5 7.50 Over 5 150 Each Backflow protective device(other than atmospheric-type breakers) 2 inches and smaller 7.50 Each Over 2 inches 15.00 Each Building and trailer park sewers 15.00 Cesspool (where permitted) 22.50 Gas piping system One to four outlets 3.00 Each Five or more outlets 0.75 Per outlet The Planning Centex, Page A-1 November 11, 2002 P 1CPS-01 oeW.,ftao,,V, to,o,u Appe„d, ,1 1-)1-02 d,, DRAFT Appendix A Comprehensive Fee Schedules — Planning & Building TABLE A-1 COMPREHENSIVEIFEE SCHEDULE PLANNING & BUILDING—BUILDING Industrial waste pre-treatment interceptor (including its trap and vent,excepting kitchen-type grease 12.00 interceptors functioning as fixture traps) Installation,alteration,or repair Water piping and/or water-treating equipment 3.00 Each Drainage or vent piping 3.00 Each fixture Lawn sprinkler system on any one meter(including backflow protection 9.00 devices) Plumbing fixture,trap or set of fixtures on one trap (including water,drainage 6.00 piping,and backflow protection) Private sewage disposal system 45.00 Rainwater systems—per drain (inside building) 6.00 Water heater and/or vent 7.50 Other Inspection and Fees Additional plan review Required by changes,additions or revisions to approved plans Exceeding second check. Inspections Outside normal business hours When no specific fee is indicated Investigation fee (for electrical work started without required permit See Special Purpose Fees Major revision(to Improvement plans prior to approval) • Re-inspections fees(assessed under provisions of Section 305(g)) Elevator Permit Fees New Installations: Passenger or freight elevator,escalator,moving walk Up to and including 40,000 of valuation 55.00 Over 40,000 of valuation 55.00 plus 1.00 Each 1,000,or fraction thereof over 40,000 Dumbwaiter or private residence elevator 15.00 Up to and including 10,000 of valuation 15.00 Plus Over 10,000 of valuation 1.00 Each 1,000 Major Alterations Fees (installation fees includes charges for electrical equipment on the See: Building Permit Fees conveyance side of the disconnect switch) Grading Plan Review Fees 50 cubic yards or less No fee 51 to 100 cubic yards 15.00 101 to 1,000 cubic yards 22.50 1,001 to 10,000 cubic yards 30.00 10,001 to 100,000 cubic yards First 10,000 cubic yards 30.00 Plus Each additional 10,000 cubic yards,or fraction thereof 15.00 100,001 to 200,000 cubic yards First 100,000 cubic yards 165.00 Plus Each additional 10,000 cubic yards,or fraction thereof, 9.00 200,001 cubic yards or more First 200,000 cubic yards 225.00 Plus Each additional 10,000 cubic yards,or fraction thereof, 450 Page A-2 Housing Element Update for the City of Palm Slirings DRAFT P ICPS-a OGID,/<H.,,,,,EA,,,,,,,aar,ad,.,r-11-o2 do, November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE i TABLE A-1 COMPREHENSIVE FEE SCHEDULE PLANNING &BUILDING—BUILDING Other Fees 1. Additional plan review required by changes,additions or revisions to See. Plan Check Fees approved plans 2. Additional plan review exceeding second check. See: Plan Check Fees 3. Major revision to improvement plans prior to approval. See: Plan Check Fees Grading Permit Fees (1) 50 cubic yards or less 15.00 51 to 100 cubic yards 22.50 101 to 1,000 cubic yards First 100 cubic yards 22.50 Each additional 100 cubic yards,or fraction thereof 10.50 1,001 to 10,000 cubic yards First 1,000 cubic yards, plus 117.00 Plus Each additional 1,000 cubic yards,or fraction thereof 9.00 10,001 to 100,000 cubic yards First 10,000 cubic yards,plus 198.00 Plus Each additional 10,000 cubic yards,or fraction thereof 40.50 100,001 cubic yards or more First 100,000 cubic yards 562.50 Plus Each additional 100,000 cubic yards,or fraction thereof 22.50 Other Inspections and Fees 1. Inspections outside of normal business hours. See:Special Purpose Fees 2. Re-inspection fees assessed under provisions of Section 305(g) See:Special Purpose Fees 3. Inspections for which no fee is specifically indicated See:Special Purpose Fees (1) The fee for a grading permit authorizing additional work to that under a Valid permit shall be the difference between t he fee paid for the original permit and the fee shown for the entire project. Plan Check Fees (Add charges for Planning Division review when applicable.) (See: Planning Division: Plan Checking Fees) All Occupancies: Building permit 65% Of permit fee. Electrical,mechanical,plumbing permit 25% Of permit fee. State Energy Regulations plan check 10% Of total plan check fee. State Handicap Regulations plan check 10% Of total plan check fee. Grading Plan Check See: Grading Plan Review Fees Under Grading Permits Section Additional Plan Review(minimum one hour) Required by re-submittal due to changes,additions or revisions to 50.00 Per hour approved plan Exceeding second check 50.00 Per hour Major revision to improvement plans prior to approval 50% Of original plan check fee Public Nuisance Administrative charges The administrative charge attributable to public nuisance abatement shall be the total of the following items • Hourly staff salaries • Overhead • Mailing Charges The Planning Center Page A-3 November 11, 2002 P ICPS 07 OG�Drgt H,.,,K Elev,e,,I App,,&.11-11-02.41 DRAFT Appendix A Comprehensive Fee Schedules — Planning & Building i TABLE'A-1 COMPREHENSIVE'FEE SCHEDULE PLANNING &BUILDING—BUILDING • Telephone Charges Printing Costs Reader Printer Copies 0.50 Each Special Purpose Fees Board of Appeals 250.00 Code Compliance Inspection and Report Fee(minimum one'hour) 50.00 Per hour,plus 12.50 Each additional /a hour. Inspections No fee specifically indicated (minimum one hour) 50.00 Per hour Outside of normal business hours (minimum two hours) 75.00 Per hour Investigation fee (including:electrical,plumbing or mechanical) Work started without required permits Double normal fee,or 50.00 Per hour Code enforcement(if needed) Whichever covers staff's 50.00 additional time plus, Per hour Mobilehome Park annual operating permit fee Fee permitted under State 50.00 law surcharge Office Hearing 100.00 Re-inspection calls (exceeding one report accommodation) 35.00 Payable in advance Renewal of expired permit(building,electrical,plumbing or mechanical 50% Of original fee within one i year. Re-roofing permit(minimum of$50,00) Per Valuation Schedule Residential Resale Inspection and Report Fee First hour 100.00 Each additional hour 50.00 Per hour Solar 35.00 Per panel (4'x 8') Swimming Pool Draining Permits i 5.00 Staff time(far work for which no fee is specifically indicated) 50.00 Per hour,plus 12.50 Each additional '/n hour Street Number Change 25.00 Strong-Motion Instrumentation Program Fee on Building Permits Commercial (minimum of$50.00) 0.21 Per each$1,000.00 of building valuation Residential (Minimum of$50.00) 0.10 Per each$1,000.00 of building valuation Page A-4 Honing Element Update for the City of Palm Springs DRAFT P,WPS-01 ocO,ft 1v,,,,,,x E(o....n,aoto•d<a,r i_r 1-01.d,a November 71, 2002 City of Palm Springs HOUSING ELEMENT UPDA TE TABLE A-2 COMPREHENSIVE FEE SCHEDULE PLANNING &BUILDING -PLANNING Microfilming Fees Administrative Minor Modifications $10.00 $335.00 Antenna Permits Non-dish 60.00 Dish 10.00 100.00 Appeals ifrorn P.C.Decisions) 25.00 250.00 Plus notification charges Architectural Approval (Double fee for work done without permits) (Half fee for revised plans) (See: Plan Checking Fees-Planning for additional charges) (See: Building Division"Permits"and"Plan Check") Incidental Minor Architectural Approval 10.00 100.00 Minor Architectural Approval 25.00 200.00 Major Architectural Approval Under 10 acres 85.00 1,000.00 Over 10 acres 85.00 1,200.00 Single-Family House 50.00 750.00 Re-paints 10 No charge Attendant Parking 120.00 Change of Zone Application Fee 110.00 1,500.00 Plus notification charges Conditional Use Permit Application Fee-New Construction 110.00 1,500.00 Plus 250.00 Plan Check Fees,plus Architectural Review Fees, plus notification charges Temporary Structures 50.00 500.00 Plus notification charges Use Only&Tennis Courts 50.00 750.00 Plus Plan Check Fees, Minor Architectural Fees(if applicable), and notification fees Determination 10.00 250.00 Environmental Documents Full or Major Study 125.00 12% Of consultant cost EA/Negative Declaration 50.00 500.00 Garage Sale Permits 15.00 General Plan Amendment 35.00 1,500.00 Plus notification charges House Moving Application 20.00 500.00 Plus Architectural fees, plus notification charges In-Lieu-of-Parking Fees 9,250.00 Perspace The Planning Center Page A-5 November 11, 2002 P iCPs-01 ooO,,t x",«,,,El, ,.Appo..&a 11-1 1_02.e", DRAFT Appendix A Comprehensive Fee Schedules — Planning & Building TABLE A-2 COMPREHENSIVE FEE SCHEDULE PLANNING & BUILDING-PLANNING Microfilming Fees Land Use Permits(L.U.P.) 300.00 Minor 100.00 (e.g.post card racks) Lot Line Adjustments/Certificates of Compliance Staff Approval 10.00 250.00 Each City Council Approval (re:changed conditions of map 25.00 500.00 Each approval) Notification Charges 50.00 Plus (x2 if City Council approval is required) 1.00 Per parcel,plus cost of any special noticing Plan Checking Fees-Planning (See: Building Division for Building Permit and Plan Checking fees). The following fee may be added to any plan requiring Planning division reviews: Plan Check-Valuation 0-200,000 0.075% Of valuation 200,001 -1,000,000- - -'- - - - - - - - -150.00 Plus 0.055% Any excess of$200,000_ --- - 1,OOQ001 -2---------------------------- - - -- ----- ------ --- Plus ._. -. - 0.35% Any excess of$1,000,000 2,000,000+ -I- - �$1,290.00 Plus - 0.015°% Any excess of$2,000,000 Building Permit-Valuation -------- 0-2------ ------------------------- ------- ------- -- 0.075% Ofvalu_a_-- ---------------- 200,001 -1,000,000 150.00 Plus 0.055% _Any excess of$200,000 ---------------01 -2,000,--------------------- ---------------- -- --------------- ---------- Plus -------------------- 0.35% Any excess of$1,000,000 ---------------- 000+--------------- -------------------- ------- ----- - 0 Plus ---- 0.015% Any excess of$2,000,000 Planned Development District Application Fee 175.00 1,500.00 Plus 250.00 Plan Check(Compliance Check),plus Architectural fees,plus notification charges Amended Revised P.D.D. 90.00 750.00 Plus 250.00 Plan Check,plus notification charges Use/Standards Amendment 50.00 250.00 Plus 150.00 Plan Check, plus notification charges Page A-6 Hoiwng Element Update for the City of Palm Springs DRAFT P�CrS-m.oG�D/tr°,,,,s Eremem,gpo.La,r -r -oz t November 11, 2002 City of Palm Springs HOUSING ELEMENT UPDATE 49 TABLE A-2 COMPREHENSIVE FEE SCHEDULE PLANNING & BUILDING-PLANNING Microfilming Fees Planning Commission Items Agenda only-yearly 52.50 Agenda&Minutes-yearly 115.50- Recreational Vehicle Parking Permit 75.00 Re-inspections for Final Approval 100.00 Staff Time (1/4 hr.minimum:$12.50) %00 Per hour (Research for which no fee is specifically indicated) Searchlight Permits 10.00 125.00 Shopping Carts Re-Issuance of Removed/Abandoned carts 12.00 Per cart(Res.18690, 9/6/95) Storage of Removed/Abandoned Carts 0.50 Per day,per cart (Res. 18690,9/6/95) • Sign Permits Off-Site Really Directional Sign Annual Permit 25.00 Per sign Permits purchased after mid-year 15.00 Per sign (include applicable???in violation of Zoning Ordinance, Section 8320.07) - --- --- - ------- ----------- - ----- ----- Per sign---- ------------------- Return of--permitted sign(Otherwise conforming to Zoning Ordinance, Section 9320.07) Review and Approval By Planning commission 25.00 200.00 Per review ---By Planning Staff----- - - ------------------- -------------- --- --------- -------- - - - Temporary Signs 5.00 20.00 Per sign Under$1,000 10.00 10% Of sign value $1,000 and up 10.00 100.00 Per review Street Name Change 25.00 325.00 Plus cost of changing street signs Subdivision Maps Final Parcel Maps 450,00 Plus ------- _-_.___-_---------- __ _ _ _ ___ _____ _____ __ 50.00 P_e_rl_oto_r_parc_el Petiti far Reversion to Acreage Re on - -- - - - - - - - - — - --- --- -- - visedMaps — - - - Application Fee 15.00 200.00 Plus 50% Of applicable map fee,plus notification charges. Plan Check 50% Of applicable map fee,plus --------------------- --------------------------- -- ------- ----------- ---------- -notihcationcharges.------ The Planning Center Page A-7 November 11, 2002 a�Kas-oi oOo..f,H,.,,+x Fknaw spf...&r,r 1-11-o2 d°° DRAFT Appendix A Comprehensive Fee Schedules — Planning & Building TABLE A-2 COMPREHENSIVE FEE SCHEDULE PLANNING & BUILDING—PLANNING Microfilming Fees Tentative Subdivision Maps 65.00 1,500.00 Plus 500.00 Plan Check(compliance check),plus notification charges. Street Name Change Tentative Parcel Maps 65.00 1,000.00 Plus 250.00 Plan Check,plus notification charges. Vesting Maps 65.00 750.00 Plus 500.00 Plan Check,plus applicable Subdivision or Parcel Map fee Time Extensions (x 2 for City Council approval) 25.00 250.00 Variances _ Variance only_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _- - - _ 55- _Plus notification charges Variance for signs only 15.00 400.00 Plus notification fees and 110.00 Sign Permit Fee Source: City of Palm Springs April 2000 • Page A-8 Houszng Element Update for the City of Palm Springs DRAFT P WPS-01 OGID/r e,.,,,g N,.,,,App,nd,a,I November 11, 2002 MINUTE ORDER NO. APPROVING THE SUBMISSION OF A DRAFT HOUSING ELEMENT TO THE CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT FOR REVIEW AND APPROVAL, IN A FORM ACCEPTABLE TO THE CITY ATTORNEY I HEREBY CERTIFY that this Minute Order approving the submission of a Draft Housing Element to the California Department of Housing and Community Development for review and approval, in a form acceptable to the City Attorney, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 181h day of December, 2002. PATRICIA A. SANDERS City Clerk f