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SR 03-09-2021 13A 13.A March 9, 2021 Council Meeting: March 9, 2021 Santa Monica, California 1 of 1 CITY CLERK’S OFFICE - MEMORANDUM To: Mayor and City Council From: Denise Anderson-Warren, City Clerk, Records & Elections Services Department Date: March 9, 2021 13.A Request of Councilmember Davis that, in order to promote the creation of more affordable housing, Council direct staff to explore the possibility of using an affordable housing overlay such as the one adopted in Cambridge, MA or the one contemplated by Berkeley, CA. Staff may return to Council with the requested information/recommendation as part of the discussion relating to the housing element or as a separate item, as staff sees fit. 13.A Packet Pg. 874 INFORMATIONAL ALERT | Coronavirus Updates NOTICE: CDD is open to the public, by appointment only, Monday through Thursday. Appointments are available for housing, zoning, business and entrepreneurship, Cambridge Energy Alliance, or other general planning matters. If you need to meet with a speci!c person, please contact them directly to schedule an appointment. Appointment requests by phone or email are strongly encouraged to ensure you are connected with the appropriate sta". Housing appointments can be made online, by phone at 617- 349-4622 or by email at housing@cambridgema.gov. Appointments for all other CDD matters can be made online, by phone at 617-349-4600 or by email at CDDat344@cambridgema.gov. 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The AHO allows the creation of new, permanently a"ordable housing that is denser than what might be allowed under base zoning, and creates a new review process through which new a"ordable housing can be approved more e#ciently. A"ordable housing developers often cannot compete with market-rate developers who can a"ord to pay more for land and buildings. There are also areas of the city where current zoning makes the creation of new a"ordable housing infeasible. Allowing a"ordable housing providers to build more densely than market-rate developers through the AHO will create new opportunities to create new, permanently a"ordable housing. Streamlining the approval process for new 100%-a"ordable housing will help reduce development costs and allow a"ordable housing providers to create new a"ordable units more quickly while using public funding more e"ectively. A!ordable Housing Overlay Ordinance: Click here to read the adopted ordinance. Design Guidelines for A!ordable Housing Overlay Developments: Click here to read the applicable AHO design guidelines. Proposed A!ordable Housing Overlay Projects in the Pipeline: Address Sponsor/Developer Description Proposed # of Units 52 New Street Just A Start Rental/New Construction TBD Je"erson Park – Jackson Place / Jackson Circle / Rindge Ave Cambridge Housing Authority Preservation/Rental/New Construction 275 Upcoming AHO Public Meetings: Project Sponsor Date/Time More Information 52 New Street Just A Start February 25, 2021 at 6:00PM via Zoom To register, click here. View a meeting $yer. Je"erson Park Federal Cambridge Housing Authority Tuesday, March 2, 2021 at 6:00 pm via Zoom. Meeting passcode: 790750 To join the meeting, click here. Passcode: 790750 View a meeting $yer. More Information: For updates and information, subscribe to the 100%-A"ordable Housing Overlay Mailing list. To learn more about how the idea for the 100%-A"ordable Housing Overlay was generated, including materials related to the adoptions of the ordinance, click here. For general questions about the AHO or to discuss potential AHO projects, please contact Cassie Arnaud, Housing Planner at carnaud@cambridgema.gov or 617/349-4617. Housing Development and Preservation 100 Percent A"ordable Housing Overlay Development Projects Housing Preservation Sustainable Development & Greening of A"ordable Housing Quick Links I'd like to learn more about… Select a Topic Neighborhood or Square Select One Current Projects… Select One Click the Map to Explore Cambridge A 5-STAR Community and National Leader in Sustainability Community Development Iram Farooq Assistant City Manager for Community Development ifarooq@cambridgema.gov 344 Broadway Cambridge, MA 02139 Directions & Map Phone : 617/349-4600 FAX : 617/349-4669 TTY : 617/349-4621 Hours of Service Mon: 8:30 A. M. to 8:00 P. M. T/W/Th: 8:30 A. M. to 5:00 P. M. Fri: 8:30 A. M. to Noon Email Us cddat344@cambridgema.gov Chris Cotter Housing Director ccotter@cambridgema.gov 617/349-4634 © 2011 Community Development Department, City of Cambridge, Massachusetts | Disclaimer | Privacy Cambridge CDD @ 344 Community Development Calendar Projects Publications Forms Contact Us cambridgema.gov Enter keyword(s)Text Size:A A A Climate and EnergyEconomic DevelopmentFacts and MapsHousingParks and PlaygroundsPlanning & Urban DesignTransportationZoning and Development 2/24/21, 10:06 PMPage 1 of 1 13.A.a Packet Pg. 875 Attachment: Attachment A_Cambridge 03092021 (4469 : Creation of more affordable housing) SUPPLEMENTAL AGENDA MATERIAL For Supplemental Packet 2 Meeting Date: March 9, 2021 Item Number: 20 Item Description: Affordable Housing Overlay Submitted by: Councilmember Taplin Amendment would make the following additions to the referral: ● Adding co-sponsor CM Robinson ● Clarifying scope of density bonus in commercial zones 13.A.b Packet Pg. 876 Attachment: Attachment B_Berkeley 03092021 (4469 : Creation of more affordable housing) ACTION CALENDAR DATE: March 9, 2021 To: Honorable Mayor and Members of the City Council From: Councilmember Terry Taplin, Councilmember Bartlett, Councilmember Robinson (co-sponsors) Subject: Affordable Housing Overlay RECOMMENDATION Refer to the City Manager and Planning Commission revisions to the zoning code and General Plan, permitting increased height and density for 100% affordable housing developments, including but not limited to: 1. Exceeding standards set forth in California Government Code Section 65915 with additional height and density incentives for qualifying 100% affordable projects deed-restricted for low- and moderate-income households, including: a. An additional 33’ local density bonus for qualifying projects with low- and moderate-income units deed-restricted for households earning up to 100% of Area Median Income, aiming to maximize total unit count restricted for Very Low and Extremely Low Income households; b. Expanding waiver of density limits, including units per acre and floor area ratio, for transit-adjacent projects to include all parcels within one half mile of a commuter rail station, and within 1/4 mile of an AC Transit bus route with 7-day service in Fiscal Year 2019; c. Reduced density limits for projects outside of transit proximity threshold with additional Transportation Demand Management (TDM) policies, including bike parking, paratransit and shared micro-mobility systems; d. Ministerial approval of all qualifying projects meeting objective design criteria and union labor requirements; e. Exempting parcels with Designated Historic Landmarks and maintaining demolition restrictions consistent with state law. 2. Ministerial approval for a baseline of 76’ of for 100% affordable residential dwelling units in all commercial zones, and provisions for ground-floor retail and/or live-work space; 3. In R-1, R-1A and R-2 zones, provide ministerial approval for a 10’ local density bonus for 100% affordable housing, with waived density requirements for dwelling units per acre and lot coverage. On parcels within high-risk wildfire zones as determined by the California Department of Forestry and Fire Protection (CalFire), ministerial approval for 100% affordable projects should be 13.A.b Packet Pg. 877 Attachment: Attachment B_Berkeley 03092021 (4469 : Creation of more affordable housing) contingent on fire-blocking design and defensible space standards certified by the Planning Department. Council directs the Planning Commission and staff to codify an Affordable Housing Overlay for 100% affordable housing as specified above in 2021-2022 work plans in anticipation of 2023-2031 RHNA targets. Staff and the commission should build upon the framework established in Government Code Section 65915 as well as municipal implementations of Affordable Housing Overlays in other states, such as Cambridge and Somerville, MA. BACKGROUND Berkeley has made insufficient progress on meeting its state-mandated Regional Housing Need Allocation (RHNA) goals for low- and moderate-income housing in the 2014-2022 RHNA cycle. As recently as the city’s 20201 Housing Pipeline Report, the city had only fulfilled 23% of its moderate-income RHNA goals, 21% of its RHNA goals for Very-Low Income households, and a mere 4% for Low-Income households. Berkeley’s next RHNA cycle is estimated to mandate roughly 3 times as many units2 as the previous cycle’s total of 2,959 units across all income tiers. SB-330 by Sen. Nancy Skinner (D-Berkeley), passed in 2019, requires municipal general plans to zone adequately to meet residential capacity mandated by RHNA goals and state-certified Housing Elements. Affordable housing will continue to be a high priority, but nonprofit affordable housing developers may face stiff competition for scarce land with market-rate developers, particularly during an anticipated period of economic recovery. In 2019, Governor Newsom signed AB-1763 by Assembly member David Chiu (D-SF), amending California Government Code 65915 to confer greater fiscal advantages for 100% affordable housing developments through state density bonus law. The bill prohibits minimum parking requirements (which Berkeley has recently removed) and grants a 3- story increase in allowable heights, with a waiver on density restrictions for projects located within a half-mile of major transit stops. When the 42-unit affordable housing project at Harpers Crossing opened in Berkeley, at a total project cost of $18 million, over 700 seniors applied. Without substantial funding and square footage for affordable housing, the City of Berkeley will be increasingly challenged to create enough subsidized housing to meet increasing demand. Increased allowable density and streamlined approvals for affordable housing will also be key to meeting Berkeley’s RHNA goals for low- and moderate-income housing. RATIONALE FOR RECOMMENDATION 1 https://www.cityofberkeley.info/Clerk/City_Council/2020/07_Jul/Documents/2020-07- 28_Item_45_Annual_Housing_Pipeline_Report.aspx&sa=U&ved=2ahUKEwjc3tDIntHuAhXWu54KHdyGAtAQFjABeg QICRAC&usg=AOvVaw0eXQ4oP5AAL14h0lphPdrr 2 https://abag.ca.gov/sites/default/files/draft_rhna_allocation_presentation_to_exec_bd_jan_21.pdf 13.A.b Packet Pg. 878 Attachment: Attachment B_Berkeley 03092021 (4469 : Creation of more affordable housing) There is precedent in the state of California for meeting low-income RHNA goals with an Affordable Housing Overlay. In eastern Contra Costa County, the newly-incorporated city of Oakley established an Affordable Housing Overlay in 2005, which has yielded 7 affordable housing developments totaling 509 housing units combined as of 2019.3 Despite local opposition to low-income housing, the AHO enabled the city to obtain state certification for its first 2001-2007 Housing Element, procure funding from the county, and meet its low-income RHNA goals by rezoning 16.3 acres for multifamily housing. According to the Association of Bay Area Governments (ABAG), 28 jurisdictions in the 9-county Bay Area have some form of Housing Overlay Zone policy.4 According to a 2010 fact sheet by Public Advocates and East Bay Housing Organizations (EBHO), “the more valuable the developer incentives included in a Housing Overlay Zone, the more effective the HOZ will be in encouraging production of homes that people can afford. Desirable incentives both motivate developers to take advantage of the HOZ, and reduce development costs to allow construction of more affordable homes.”5 The City Council of Cambridge, Massachusetts passed an Affordable Housing Overlay amendment to its zoning code in October of 2020.6 The City Council of Somerville, MA passed a similar zoning ordinance in December of 2020. These zoning overlays permit greater height and density for ministerial approval 100% Below Market-Rate housing developments, following objective design criteria. The intent of these ordinances is to increase the availability of infill sites with an advantage for affordable housing development where nonprofit and public entities may otherwise be unable to compete win the private market, as well as promoting a more equitable distribution of affordable housing in cities where class and racial segregation still mirrors the historical legacy of redlining and Jim Crow-era racial covenants. These ordinances preserve open space requirements and comport with restrictions on historic districts. The Somerville7 and Cambridge8 Overlays were overwhelmingly 3 UC Berkeley Terner Center for Housing Innovation. (2019). Affordable Housing Overlays: Oakley. Retrieved from https://ternercenter.berkeley.edu/wp-content/uploads/2020/10/Affordable_Housing_Overlay_Zones_Oakley.pdf 4 http://housing.abag.ca.gov/policysearch 5 http://www.friendsofrpe.org/files/HOZ_Fact_Sheet_FINAL_7-27-10%282%29.pdf 6 Sennott, A. (2020). Mayor: ‘An important social justice moment.’ Councilors pass Affordable Housing Overlay after more than 20 community meetings. WickedLocal.com. Retrieved from https://www.wickedlocal.com/story/cambridge-chronicle-tab/2020/10/06/an-important-social-justice-moment- cambridge-councilors-pass-affordable-housing-overlay/114657068/ 7 Taliesin, J. (2020). Somerville moves to facilitate local affordable housing development. WickedLocal.com. Retrieved from https://www.wickedlocal.com/story/somerville-journal/2020/11/23/residents-support-citys-move- ease-affordable-housing-development/6328944002/ 8 Eisner, D. (2020). The Historic Affordable Housing Overlay Is about to Pass. How Did It Overcome so Many Obstacles? A Better Cambridge. Retrieved from 13.A.b Packet Pg. 879 Attachment: Attachment B_Berkeley 03092021 (4469 : Creation of more affordable housing) supported by nonprofit affordable housing developers and activists. The city of Boston is now exploring similar policy initiatives.9 Prior to introduction of the city’s Affordable Housing Overlay policy, Somerville City Councilor Ben Ewen-Campen, chair of the council’s Land Use Committee, directed city staff to survey the region’s affordable housing. “Overwhelmingly, we heard about two obstacles,” Ewen-Campen wrote.10 First, and most obviously, is the cost of land. Today, it is nearly impossible for any non-profit housing developer to purchase property in Somerville. This is no surprise: they are competing against “market rate” developers and investors who can afford to pay far more because they’ll soon be making windfall profits in our red-hot real estate market. Second, the funding agencies that support affordable housing are looking for predictability and certainty in the projects they support. This means that the uncertainty, delays, and discretionary nature of the permitting process in Somerville can be a major issue when attempting to secure funding. Together, these two obstacles mean that new affordable units in Somerville are almost always created by market rate developers through Somerville’s “20% inclusionary zoning” policy, which is absolutely necessary but nowhere near sufficient to meet Somerville’s goals for affordability. Affordable housing nonprofits face similar fiscal and regulatory barriers to developing much-needed low- and moderate-income housing. While Berkeley does not have an abundance of vacant and/or publicly-owned land close to transit to help meet these goals, an Affordable Housing Overlay permitting residential uses on commercial corridors for 100% affordable housing can tap into an abundant subset of commercial parcels with residential potential in the city. According to a study by the UC Berkeley Terner Center for Housing Innovation, mid-sized cities in the San Francisco Bay Area have an average of 32.4% of land zoned for commercial uses, and this land tends to be evenly distributed between high- and low-opportunity neighborhoods as defined by the state’s Tax Credit Allocation Committee.11 https://www.abettercambridge.org/the_historic_affordable_housing_overlay_is_about_to_pass_how_did_it_over come_so_many_obstacles 9 Logan, T. (2020). Boston to consider looser zoning for affordable housing. The Boston Herald. Retrieved from https://www.bostonglobe.com/2020/08/24/business/boston-mull-looser-zoning-affordable-housing/ 10 Ewen-Campen, B. (2020). We need a city-wide ‘Affordable Housing Overlay District’ in Somerville. The Somerville Times. Retrieved from https://www.thesomervilletimes.com/archives/103539 11 Romem, I. & Garcia, D. (2020). Residential Redevelopment of Commercially Zoned Land in California. UC Berkeley Terner Center for Housing Innovation. Retrieved from https://ternercenter.berkeley.edu/wp- content/uploads/2020/12/Residential-Redevelopment-of-Commercially-Zoned-Land-in-California-December- 2020.pdf 13.A.b Packet Pg. 880 Attachment: Attachment B_Berkeley 03092021 (4469 : Creation of more affordable housing) As the Home for All SMC Housing Overlay Zone fact sheet explains: “In locations where the zoning doesn’t allow residential development, HOZs can enable housing construction while avoiding the lengthy process of amending a general plan.”12 ALTERNATIVES CONSIDERED Due to aforementioned state laws, there is no alternative in which the City of Berkeley does not rezone certain areas to meet its upcoming RHNA goals and have a certified Housing Element. While the city could simply abide by the standards set forth in AB- 1763 with no additional incentives or streamlining for 100% affordable housing, this would risk insufficiently prioritizing low- and moderate-income housing, and is inconsistent with goals already identified by the City Manager’s office to reduce homelessness and housing insecurity. The City Manager’s 1000 Person Plan to End Homelessness13 includes among its strategic recommendations: “Continue implementing changes to Berkeley’s Land Use, Zoning, and Development Review Requirements for new housing with an eye towards alleviating homelessness. If present economic trends continue, the pace with which new housing is currently being built in Berkeley will likely not allow for a declining annual homeless population. Berkeley should continue to streamline development approval processes and reform local policies to help increase the overall supply of housing available.” ENVIRONMENTAL IMPACTS A 2019 study of displacement and gentrification in Seattle14 found qualitative evidence that the displacement of low-income households from central urban neighborhoods could increase emissions from the area with the influx of higher-income households with more carbon-intensive consumption, while those displaced may be more likely to move to where they contribute higher Vehicle Miles Traveled (VMT) in suburban communities. At the same time, research from UC Berkeley15 confirms that high-income households moving to low-VMT urban neighborhoods enables major reductions in per-capita emissions. An Affordable Housing Overlay coupled with the city’s Local Preference policy could promote environmental justice and reduce per-capita VMT pursuant to goals established in the city’s Climate Action Plan. FISCAL IMPACTS 12 https://homeforallsmc.org/toolkits/housing-overlay-zones/ 13 https://www.cityofberkeley.info/Clerk/City_Council/2019/02_Feb/Documents/2019-02- 26_Item_20_Referral_Response__1000_Person_Plan.aspx 14 Rice, J. L., Cohen, D. A., Long, J., & Jurjevich, J. R. (2019). Contradictions of the Climate-Friendly City: New Perspectives on Eco-Gentrification and Housing Justice. International Journal of Urban and Regional Research. doi:10.1111/1468-2427.12740 15 Jones, C. et al. (2017). Carbon Footprint Planning: Quantifying Local and State Mitigation Opportunities for 700 California Cities. Urban Planning, 3(2). doi:10.17645/up.v3i2.1218. 13.A.b Packet Pg. 881 Attachment: Attachment B_Berkeley 03092021 (4469 : Creation of more affordable housing) TBD. The City Manager’s 1000 Person Plan to End Homelessness notes that the fiscal impact of land use reform “could not be quantified” at the time the report was issued. CONTACT Councilmember Terry Taplin (District 2), 510-983-7120, ttaplin@cityofberkeley.info ATTACHMENTS/SUPPORTING MATERIALS 1. Resolution 2. Cambridge, MA: Ordinance No. 2020-8 3. Assembly Bill 1763 (2019) 13.A.b Packet Pg. 882 Attachment: Attachment B_Berkeley 03092021 (4469 : Creation of more affordable housing) RESOLUTION NO. ##,###-N.S. WHEREAS the San Francisco Bay Area is in the midst of a crisis-level housing shortage disproportionately affecting low- and moderate-income households; and, WHEREAS the City of Berkeley has failed to meet its Regional Housing Needs Allocation production goals for low- and moderate-income households in the 2014-2022 RHNA cycle; and, WHEREAS the 2022-2031 RHNA cycle will likely allocate over 9,000 housing units to the City of Berkeley, while the previous cycle’s housing needs for low- and moderate- income households remain unmet; and, WHEREAS Assembly Bill 1763, passed in 2019, enables greater density and height allowances for 100% affordable housing, with low- and moderate-income households defined by Section 50053 of the Health and Safety Code; and, WHEREAS state law will mandate sufficient residential capacity in the City’s general plan to align its zoning with its housing element and RHNA goals; WHEREAS the City of Oakley authorized an Affordable Housing Overlay in 2005 to meet its low-income RHNA goals; and, WHEREAS several cities in the State of Massachusetts have implemented Affordable Housing Overlay policies to increase density in high-opportunity neighborhoods near transit to reverse patterns of historic segregation, produce more affordable housing, and give affordable housing profits an advantage in parcel acquisition; THEREFORE, BE IT RESOLVED that the City Council of the City of Berkeley refers to the City Manager and Planning Commission revisions to the zoning code and General Plan, permitting increased height and density for 100% affordable housing developments, including but not limited to: 1. Exceeding standards set forth in California Government Code Section 65915 with additional height and density incentives for qualifying 100% affordable projects deed-restricted for low- and moderate-income households: a. An additional 33’ local density bonus for qualifying projects with low- and moderate-income units deed-restricted for households earning up to 100% of Area Median Income, aiming to maximize total unit count restricted for Very Low and Extremely Low Income households; b. Expanding waiver of density limits, including units per acre and floor area ratio, for transit-adjacent projects to include all parcels within one half mile of a commuter rail station, and within 1/4 mile of an AC Transit bus route with 7-day service in Fiscal Year 2019; c. Reduced density limits for projects outside of transit proximity threshold with additional Transportation Demand Management (TDM) policies, including bike parking, paratransit and shared micro-mobility systems; 13.A.b Packet Pg. 883 Attachment: Attachment B_Berkeley 03092021 (4469 : Creation of more affordable housing) d. Ministerial approval of all qualifying projects meeting objective design criteria and union labor requirements; a. Exempting parcels with Designated Historic Landmarks and maintaining demolition restrictions consistent with state law; 2. Ministerial approval for a baseline of 76’ forof 100% affordable residential dwelling units in all commercial zones, with provisions for ground-floor retail and/or live-work space; 3. In R-1, R-1A and R-2 zones, provide ministerial approval for two-story local density bonus for 100% affordable housing, with waived density requirements for dwelling units per acre and lot coverage. On parcels within high-risk wildfire zones as determined by the California Department of Forestry and Fire Protection (CalFire), ministerial approval for 100% affordable projects should be contingent on fire-blocking design and defensible space standards certified by the Planning Department; BE IT FURTHER RESOLVED, that the City Council of the City of Berkeley directs the Planning Commission and staff to codify an Affordable Housing Overlay for 100% affordable housing as specified above in 2021-2022 work plans in anticipation of 2023- 2031 RHNA targets. 13.A.b Packet Pg. 884 Attachment: Attachment B_Berkeley 03092021 (4469 : Creation of more affordable housing) March 7, 2021 Re: Council Agenda Item 13A - Affordable Housing Overlay Dear Mayor Himmelrich, Mayor Pro Tempore McCowan, and members of the Santa Monica City Council: Santa Monica Forward, Abundant Housing LA, NRDC, and Inclusive Santa Monica strongly support the City exploring an Affordable Housing Overlay Zone, as proposed in item 13-A of your agenda. Santa Monica is a segregated city. North of Montana, for example, is 85% white whereas Pico is 50% people of color. This did not happen by chance - it is the legacy of decades of racist and discriminatory housing policies. An Affordable Housing Overlay Zone, which would end affordable housing bans in our most exclusive neighborhoods, would help to chip away at our segregated living patterns. California’s housing crisis continues to grow. While there is no single easy solution to this challenge, an Affordable Housing Overlay Zone would help create desperately needed affordable housing and support the city in reaching its RHNA goals. The impacts of the housing crisis fall the hardest on low-income families and communities of color. Historic redlining, Item 13.A 03/09/21 1 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 885 Attachment: Written Comments (4469 : Creation of more affordable housing) restrictive covenants, targeted evictions, and other racist and classist policies helped cement the systemic racism that shapes the world we live in. These policies were common across the nation, and Santa Monica itself shares a part in this shameful history. Just this weekend, The Los Angeles Times ​ran a story covering Santa Monica’s deliberate displacement of our Black community​. We should not wait any longer to address these historic injustices. Randy Shaw, author of ​Generation Priced Out​, recently wrote in an article about the Affordable Housing Overlay Zones in Cambridge, MA and one now proposed in Berkeley, CA, that these zones are “...arguably the best strategy for high housing cost cities to reduce segregation.” We have attached that article here for your reference, and hope that you will direct staff to explore this promising option here in Santa Monica as a meaningful step toward undoing the legacy of racist and exclusionary zoning laws. Please vote “yes” on Agenda Item 13 A. Sincerely, Abby Arnold and Carl Hansen Co-chairs, Santa Monica Forward Leonora Camner Executive Director, Abundant Housing L.A. Carter Rubin Mobility and Climate Advocate, NRDC Steering Committee Members Inclusive Santa Monica Item 13.A 03/09/21 2 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 886 Attachment: Written Comments (4469 : Creation of more affordable housing) 3/5/2021 Berkeley’s Next Big Step: A 100% Affordable Housing Overlay - Beyond Chron https://beyondchron.org/berkeleys-next-big-step-a-100-affordable-housing-overlay/1/3 BERKELEY’S NEXT BIG STEP: A 100%AFFORDABLE HOUSING OVERLAY(HTTPS://BEYONDCHRON.ORG/BERKELEYS-NEXT-BIG-STEP-A-100-AFFORDABLE-HOUSING-OVERLAY/) by Randy Shaw (https://beyondchron.org/author/randy/) on March 2, 2021 Taplin Pushes to Increase Inclusion After ending exclusionary zoning and moving forward to legalize fourplexes, Berkeley is still pushing for a more inclusive city. In a huge step toward that goal, Councilmember Terry Taplin is sponsoring a 100% Affordable Housing Overlay modeled on Cambridge’s recent measure (https://beyondchron.org/cambridge- passes-citywide-affordable-housing-overlay-a-new- national-model/). Taplin’s move is transformative. Berkeley and other cities can best advance economic and racial inclusion by facilitating the citywide expansion of 100% affordable housing. I promoted Cambridge’s Housing Overlay as a national model in the paperback edition of Generation Priced Out (https://www.ucpress.edu/book/9780520356214/generation-priced-out), and wrote about its October 2020 passage. ITranslate » Item 13.A 03/09/21 3 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 887 Attachment: Written Comments (4469 : Creation of more affordable housing) 3/5/2021 Berkeley’s Next Big Step: A 100% Affordable Housing Overlay - Beyond Chron https://beyondchron.org/berkeleys-next-big-step-a-100-affordable-housing-overlay/2/3 have repeatedly encouraged other cities to enact such an Overlay. The strategy getting increased national attention. On March 11 Harvard’s acclaimed Joint Center for Housing Studies holds a free webinar (https://www.jchs.harvard.edu/calendar/affordable-housing-zoning-and-bottom-line-what-can-other-cities-learn-100- percent) on the Overlay’s importance; it’s a great chance for those in other cities (Denver? Los Angeles?) to learn of the policy’s advantages. Taplin’s plan will be heard at the Council’s Land Use Committee on March 4 at 10:30. Councilmember Lori Droste’s fourplex measure is also on the agenda. I’m told the zoom link to comment on these measures can be found on the city website (https://www.cityofberkeley.info/Clerk/Home/Policy_Committee__Land_Use,_Housing___Economic_Development.aspx). Reducing Segregation It’s never talked about much but progressive cities have long targeted affordable housing outside high opportunity neighborhoods. Nonprofit projects are built away from successful retail corridors or in high-crime, less-desirable communities. There are exceptions—nonprofit housing in San Francisco’s desirable Mission District is a bulwark against gentrification—but most affordable projects increase or reinforce rather than reduce racial and class segregation. Darrell Owens of East Bay for Everyone tweeted last weekend that he seemed to be the only Black man in Berkeley’s Monterey Market. That makes sense. No affordable housing gets built anywhere near the Market’s neighborhood, and the presence of Owen’s demographic is a rarity. Few Berkeley residents would claim to endorse segregation. Yet the entire City Council was effectively recalled in the 1980’s for supporting scattered site public housing— a move that brought low-income racial minorities to neighborhoods where they were excluded. Taplin’s Affordable Housing Overlay could change this. It is arguably the best strategy for high housing cost cities to reduce segregation. Cambridge’s Affordable Housing Overlay permits greater height and density for ministerial approval for 100% Below Market-Rate housing developments. In addition to helping overcome racial and class segregation, it increases the availability of infill sites where nonprofit and public entities may otherwise be unable to compete with private developers. In many cities private developers routinely outbid nonprofits for choice lots. The Overlay helps level this playing field by expediting nonprofit approvals and reducing project costs. The Overlay preserves open space requirements and maintains restrictions on historic districts. These are big concerns in Berkeley and other cities. Affordability and Density The Overlay also addresses progressive concerns that increasing density does little to promote affordability. Here, all of the density increase is for 100% affordable projects. It’s hard to reconcile opposition to such an Overlay with being “progressive.” The Overlay gives needed project predictability to funders of affordable housing. We know how long it can take to navigate permitting and approval processes; the Overlay allows nonprofits to avoid these delays. Translate » Item 13.A 03/09/21 4 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 888 Attachment: Written Comments (4469 : Creation of more affordable housing) 3/5/2021 Berkeley’s Next Big Step: A 100% Affordable Housing Overlay - Beyond Chron https://beyondchron.org/berkeleys-next-big-step-a-100-affordable-housing-overlay/3/3 Also important is that an Affordable Housing Overlay permitting residential uses on commercial corridors for 100% affordable housing expands the potential supply. Nonprofit developers will be able to acquire the many commercial parcels in Berkeley that have residential potential. Perfect Timing This is the perfect time to pass a 100% Affordable Housing Overlay. The Biden Administration has committed to a huge jump in funding for affordable housing development. These new funds enable nonprofits to actually build projects in quality neighborhoods, which has not been possible at the funding levels of the Trump years. I love to see great housing policies in one city picked up by others. Just as Cambridge’s action offered a model for Berkeley, Berkeley’s adoption of the Overlay hopefully builds momentum for other cities to adopt the policy as well. Berkeley backers wrote an op-ed for Berkeleyside this week that makes a strong case for the Overlay (https://www.berkeleyside.com/2021/03/01/opinion-berkeley-can-and-should-speed-up-affordable-housing-construction). If my story has not convinced you to support the Overlay, maybe they will do so. Randy Shaw (https://beyondchron.org/author/randy/) Randy Shaw is the Editor of Beyond Chron and the Director of San Francisco’s Tenderloin Housing Clinic, which publishes Beyond Chron. Shaw's latest book is Generation Priced Out: Who Gets to Live in the New Urban America. He is the author of four prior books on activism, including The Activist's Handbook: Winning Social Change in the 21st Century, and Beyond the Fields: Cesar Chavez, the UFW and the Struggle for Justice in the 21st Century. He is also the author of The Tenderloin: Sex, Crime and Resistance in the Heart of San Francisco More Posts (https://beyondchron.org/author/randy/) Filed under: National Politics (https://beyondchron.org/category/articles/national/) Translate » Item 13.A 03/09/21 5 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 889 Attachment: Written Comments (4469 : Creation of more affordable housing) 1 Vernice Hankins From:Matt Stauffer <stauffermt@gmail.com> Sent:Tuesday, March 9, 2021 11:34 AM To:Council Mailbox; councilmtgitems Subject:Item 13.A - support EXTERNAL    Dear Mayor and Council Members,    I am writing in support of item 13.A on tonight's agenda.    Staff should be allowed to examine the Cambridge and Berkeley models to see how a 100% affordable housing overlay  could be implemented in Santa Monica.    Santa Monica has a large number of housing units to plan for under state law, especially affordable units. A 100%  affordable housing overlay could help the city reach these numbers and staff should be allowed to research and report  back on this idea.    Thank you,  ‐‐   Matt Stauffer  Item 13.A 03/09/21 6 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 890 Attachment: Written Comments (4469 : Creation of more affordable housing) Dear Councilmember Davis, While we understand the desire for exploration of the suitability of an affordable housing overlay (AHO) to Santa Monica, any related analysis must be specific to Santa Monica and comprehensive in scope. Santa Monica’s characteristics differ significantly from the Cambridge and Berkeley examples included in the Council’s Agenda. To point out just a couple of the key differences, we would like to note that Santa Monica currently has significantly denser housing than either Cambridge or Berkeley. Specifically, Santa Monica has a 36% higher housing unit to population rate than Berkeley. The comparable excess density rate compared to Cambridge is +22%. In addition, the incremental impact to R1 densification is vastly different between the cities. In Cambridge, 98% of the city’s residential housing is currently multifamily (only 978 parcels are single family), which almost eliminates the need for infrastructure upgrades. Moreover, nearly every part of Cambridge’s 6 square miles is within a short walk of a legacy subway station, trolley or bus stop. These factors require that any AHO analysis be exclusively focused on the specific conditions and issues in Santa Monica. Moreover, as the AHO concept covers all parcels in the city, the analysis must include non-R1 densification AHO alternatives. Turning our attention to an AHO-driven densification in Santa Monica’s legacy single family R1 areas, there are multiple knock-on issues that must be addressed by staff in their report. 1. TRANSPORTATION Densification in deeply residential legacy districts increases reliance on private transportation as these areas have been expressly situated far from grocery stores, restaurants, and other amenity access. Santa Monica does not benefit from a legacy network of subway or trolly infrastructure. Moreover, Santa Monica’s connection to the LA Metro area has created extensive social and professional links to a vast extended geographic area that is not productively addressable by bus service or any other public transportation. 2. PARKING IMPACT Densification initiatives in Santa Monica have emphasized elimination of on-site car parking. This AHO will create a significant barrier to EV adoption by intensifying the impact of restricted access to the overnight charging resources residential users rely on. The staff analysis will need to assess this impact. 3. EQUITABILTY CROSS-CITY AHO viability relies on density per project to bring per unit land acquisition costs down to a level that allows development. Santa Monica has a wide range of market prices that would create highly disparate densification impacts across SM neighborhoods. Assuming a hypothetical $300k land cost ceiling per unit, the number of required units in different parts of the city would be vastly different: a. A $4 million SF parcel would require a 13 unit project for viability b. A $2 million SF parcel would require a 7 unit project for viability c. A $1 million SF parcel would require a 3 unit project for viability Thus, in order to prevent a highly disparate impact to the different sections of the city, the economic disparities must be taken into account. Otherwise, the lower cost neighborhoods could become overwhelmed with AHO projects due to the more favorable economics while the higher cost areas could attract a disproportionate share of high-density projects. 4. DEED RESTRICTION IN PERPETUITY To avoid the speculative surge in land prices that densification creates, the Cambridge AHO relies on deed restricted affordability in perpetuity. This policy has not been adopted by Santa Monica to date and would be required. Moreover, this policy should be mandatory across all affordable housing (AHO) providers in the city. Item 13.A 03/09/21 7 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 891 Attachment: Written Comments (4469 : Creation of more affordable housing) 5. INFRASTRUCTURE IMPACT Santa Monica’s single family neighborhoods rely significantly on a roughly 90-year-old legacy sewer and water infrastructure designed for a low-density residential use. Infrastructure upgrades to handle increased multi-family density will require full and realistic impact and cost analyses. 6. HEIGHTS Height limitations are in place in Cambridge and the city was sensitive to reference the surrounding community. Santa Monica will need to address height limitations and how that policy counterbalances the interests of the entire surrounding neighborhood. 7. HEALTH & SAFETY Systematic analysis of the health and safety impacts of densification on low-density neighborhoods will be imperative. Given the limited staff expertise in this area, this will require the use of experienced, qualified, certified, objective 3rd party experts. 8. DEMOCRATIC PROCESS Given the impact of an AHO throughout the city’s neighborhoods, the staff analysis should include the plan to for the city to meaningfully and authentically engage all of the city’s residents. The Cambridge process is instructive as it was actively in the works for two years and encompassed more than 20 community meetings. The outcomes included 62 proposed amendments with 46 (74%) of those passed into the zoning ordinance. 9. SEPARATE SUBMISSION The fundamental impact of this policy decision on the city requires that it be a separate submission to Council and not buried in the overall housing element. Respectfully, Marc L. Verville Residents Cross-City for Safety and Sanity (RxSS) Resident Information Resource of Santa Monica (https://residentinforesource.org/) Item 13.A 03/09/21 8 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 892 Attachment: Written Comments (4469 : Creation of more affordable housing) Item 13.A 03/09/21 9 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 893 Attachment: Written Comments (4469 : Creation of more affordable housing) Item 13.A 03/09/21 10 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 894 Attachment: Written Comments (4469 : Creation of more affordable housing) Re: Council Agenda Item 13A - Affordable Housing Overlay Dear Mayor Himmelrich, Mayor Pro Tempore McCowan, and members of the Santa Monica City Council: Santa Monica Black Agenda strongly support the City exploring an Affordable Housing Overlay Zone, as proposed in item 13-A of your agenda. We believe that Affordable Housing Overlay Zone would help bring desperately needed affordable housing to Santa Monica and would begin to correct historic racist and exclusionary zoning policies that continue to impact the African American community in our city. The growing California housing crisis has continually affected low- and moderate-income families and we believe that the Affordable Housing Overlay Zone is one of the best strategies for the high housing cost in Santa Monica and to reduce segregation. Please vote “yes” on Agenda Item 13 A. Sincerely Yours Santa Monica Community Members for The Black Agenda Item 13.A 03/09/21 11 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 895 Attachment: Written Comments (4469 : Creation of more affordable housing) 1 Vernice Hankins From:Scott Wolfe <scott.a.wolfe@gmail.com> Sent:Tuesday, March 9, 2021 12:58 PM To:councilmtgitems Cc:Gleam Davis; Kristin McCowan; Phil Brock; Sue Himmelrich; Oscar de la Torre; Councilmember Kevin McKeown; Christine Parra Subject:Council Meeting 2021/03/09 - Public Comment for Item 13.A EXTERNAL    Dear Councilmembers,    I want to extend my gratitude towards Councilmember Davis in regards to this amazing idea of a Social Housing overlay. Providing additional Social Housing is going to allow our community to become more vibrant and diverse. Otherwise, Santa Monica will continue to push residents out and turn into a place reserved for the affluent and the landlords.     As I do with any Social Housing measures or Affordable Housing measures, I will once again recommend reviewing and supporting AB 387. And also recommend that we review our plans of the Santa Monica Airport to utilize the 215 acres for a future Social Housing project as opposed to another park.    Thank You,  Scott Wolfe  Sunset Park Resident    Item 13.A 03/09/21 12 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 896 Attachment: Written Comments (4469 : Creation of more affordable housing) 1 Vernice Hankins From:Bradley Ewing <bradleywewing@gmail.com> Sent:Tuesday, March 9, 2021 1:55 PM To:councilmtgitems Subject:13A EXTERNAL    Council,    Now that the RHNA allocation has been finalized (9,000 units / 6,000 affordable), it's imperative that the city look for  solutions to meet and exceed that goal to tackle the housing shortage headon. I strongly urge the rest of the council to  support Councilwoman Davis's measure for an affordability overlay.     Best,  Brad Ewing  Item 13.A 03/09/21 13 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 897 Attachment: Written Comments (4469 : Creation of more affordable housing) THE LEAGUE OF WOMEN VOTERS OF SANTA MONICA P.O. Box 1265 Santa Monica, CA 90406-1265 Phone: 310.564.6946 www.lwvsantamonica.org #MakingDemocracyWork Tuesday, March 9, 2021 Re: City Council Agenda Item 13A Dear Mayor Himmelrich, Mayor Pro Tem McCowan, and members of the City Council The League of Women Voters of Santa Monica supports a proactive approach to ensuring that the City of Santa Monica will meet its housing target for the 6th Cycle RHNA/Housing Element process, and do our part to address the housing crisis that our entire state is currently experiencing. California’s housing shortage is dire. McKinsey & Co.’s analysis estimated that California would need a total of approximately 3.5 million new housing units by 2025 to keep pace with demand and address the existing housing shortage. Per the California Legislative Analyst’s Office 2015 report (California’s High Housing Costs: Causes and Consequences), there was a shortage of 2.7 million new homes between 1980-2010. We support the proposed recommendation set forth in item 13A for staff to explore the possibility of using an affordable housing overlay in Santa Monica. The City will need to plan for 8,874 new homes over the next 8 years, approximately 69% of which will need to be affordable at various income levels. The City should seek new and creative methods to address the gap in housing needs, and explore methods to reform zoning and/or streamline housing approvals, as appropriate, such as a potential affordable housing overlay. Sincerely, Natalya Zernitskaya President League of Women Voters of Santa Monica OFFICERS President Natalya Zernitskaya Vice President, Program Barbara Inatsugu Secretary Sharon Hart Treasurer Karen Carrey DIRECTORS Cathie Gentile Camille Hannant Ann Williams Item 13.A 03/09/21 14 of 14 Item 13.A 03/09/21 13.A.c Packet Pg. 898 Attachment: Written Comments (4469 : Creation of more affordable housing)