Title
Planning and Building Department, Economic Development and Administrative Division, recommending the Board:
1) Hold a workshop to discuss affordable housing issues and topics identified by the Affordable Housing Task Force; and
2) Provide direction to staff on potential solutions and priorities for addressing affordable housing challenges within El Dorado County that should be incorporated in an Affordable Housing Ordinance.
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
Since the adoption of the General Plan Housing Element Update (2013-2021) in 2013, the County identified the need for incentive-based policies that would “encourage, assist, and monitor the development of housing that is affordable” to extremely low to moderate households and expand upon state-prescribed incentives in its Implementation Measure HO-2013-6. This implementation measure was carried forward into the current Housing Element Update (2021-2029) as Implementation Measure HO-5. In addition, the County included HO-37 in the current Housing Element Update, which requires the development of an Affordable Housing Ordinance that would encourage and assist the development of affordable housing by “considering a variety of housing policy tools, including inclusionary housing.” An Affordable Housing Ordinance would help to incentivize the production and preservation of affordable housing that is aligned with the County’s goals while addressing its regional share of housing needs. Currently, the County lags in producing units for very low, low, and moderate-income households.
The County included the task of developing an Affordable Housing Ordinance on its Long Range Planning’s (LRP) yearly “Priority Matrix” or “Workplan” since the February 28, 2017, Board Meeting (Legistar file 16-0069).
On May 10, 2022 (Legistar file 22-0727), the LRP Division hosted a joint information workshop for the Board and Planning Commission to solicit input and direction from the Board and Planning Commission, and to encourage public participation during the process of developing an Affordable Housing Ordinance.
A key action taken by the Board at that meeting was directing staff to create the Affordable Housing Task Force (AHTF). Initial items identified by the Board for the AHTF to look at, included:
• Reexamine surplus or other County lands inventory list for possible affordable housing options.
• Consider utilization of Tiny Homes for residential use.
• Consider Inclusionary Zoning Policy with fee deferral program or developer in-lieu fees or similar policies.
• Consider new residential zoning overlays for Mixed Use on commercial lands to encourage affordable housing (e.g. Missouri Flat Corridor).
• Consider zoning options for affordable housing in new or existing mobile home parks (currently allowed by CUP in residential zones).
• Designate Missouri Flat Corridor “Green Zone” for possible grant funded projects (e.g. pilot project for Sacramento Area Council of Governments).
• Consider a Housing trust fund.
Since the AHTF was formed in April of 2024, the LRP Division handed over the housing portfolio to the Economic Development and Administration Division. Economic Development staff have hosted six meetings of the AHTF. As outlined in the Board’s direction of 2022, and reiterated in April 2024, the first goal of the AHTF is to draft an affordable housing ordinance. To that end, staff have been working with the AHTF to identify topics and themes to be included in a future Resolution of Intent (ROI) and, ultimately, a draft ordinance for Board consideration.
The Tahoe Regional Planning Agency (TRPA) is the primary land use authority in the Tahoe Basin so development in the Tahoe Basin, including affordable housing, faces unique challenges. The County coordinates its land use planning efforts with TRPA, including affordable housing. The County launched the Tahoe El Dorado Area Plan (TED Area Plan), which is directed by the County’s General Plan (General Plan Goal 2.10, Policies 2.10.1.2 and 2.10.1.3, and Measure LU-0). The TED Area Plan is a comprehensive, long-term planning document for the Tahoe Basin portion of the County that will 1) ensure consistency between the County and TRPA rules; 2) streamline permitting and environmental review; 3) allow the County to control land use policies and decisions based the community’s needs; and 4) incorporate TRPA and State law updates - ultimately, establishing a better framework to advance affordable housing and economic development while attaining environmental thresholds set by TRPA. In addition, within the TED Area Plan, staff is developing strategies to advance Tahoe-specific affordable housing efforts in close coordination with TRPA. County staff is coordinating closely on the work of the AHTF and TED Area Plan.
Given the amount of time since the 2022 Board direction and considering the two new members since that action, staff has determined it would be prudent to reopen the conversation to ensure that staff and the AHTF are on the right path for the outcomes that the Board is seeking on affordable housing. What follows then, is a brief summary of each topic and idea to be discussed so that the Board may provide input on the direction of the AHTF in the development of an affordable housing ordinance.
To supplement the work of the AHTF staff was awarded a SACOG grant for the Engage, Empower, Implement (EEI) Regional Funding Program for $250,000. Staff will partner with the El Dorado Community Foundation on a comprehensive community outreach plan on affordable housing, transit, and mobility needs. This work will begin in the Spring of 2025 and will inform the implementation of the forthcoming affordable housing ordinance.
AHTF Topics of Discussion
Below is a list of topics and supporting ideas that have been discussed with the AHTF to be potentially included in a future ordinance. This specific list of topics was presented to the AHTF in their February meeting and reflects their input and recommendations to your Board. Where an incentive or rule already exists under state law, it is identified below as such; however, these are still topics discussed with the AHTF. Staff are looking for Board direction on each of these topics to ensure the intent of the Board is being met before staff brings an ROI for consideration.
1. Definitions
Key terms related to affordable housing include:
• Affordable Housing: Housing that is affordable to individuals or families with specific income levels.
• Very Low-Income: Households earning up to 50% of the area’s median income.
• Low-Income: Households earning between 51% and 80% of the area’s median income.
• Moderate-Income: Households earning between 81% and 120% of the area’s median income.
• Inclusionary Housing: Policies requiring a portion of new developments to be affordable for low- and moderate-income households.
2. Incentives for Affordable Housing Development
• Density Bonus: Developers may receive up to a 100% density bonus above the maximum allowable density, as per the state’s Density Bonus Law (Government Code Section 65915). The Task Force has not recommended additional concessions beyond the Density Bonus Law.
• Fee Waivers and Reductions: Possible waivers or reductions in building, infrastructure, and utility fees, especially for projects with a significant portion of affordable units.
• Parking Requirement Reductions: Developers may qualify for reduced parking requirements based on proximity to transit or the number of affordable units (AB 2097, AB 1763, and AB 2244). The Task Force has not recommended additional concessions.
• Property Tax Incentives: The County will collaborate with developers on tax incentives, such as the California Low-Income Housing Tax Credit, to support affordable housing projects.
3. Affordable Housing Fund (Housing Element Implementation Measure HO-12)
Fees collected from opting out of on-site affordable housing requirements would be used to fund the existing Affordable Housing Trust Fund for development, preservation, and subsidies. Additional funding may come from grants and donations. The County established an in-lieu fee program in 2016 with a single developer through a Development Agreement, for $500 per unit, annually adjusting with Consumer Price Index (CPI). A second project was established in 2021 with the same $500 fee structure with CPI. Thus far the program increased from $150,000 to $300,000 in eight (8) years since the 2016 approval. Considerable conversation has occurred with the AHTF regarding in-lieu fees, particularly on the ineffectiveness of a fee as low as $500.
4. Streamlining Permitting and Expedited Review Process (HO-13)
• Expedited Permit Processing: A fast-track program to reduce processing times for affordable housing projects, with priority review for deed-restricted projects that goes beyond existing state law.
• Consolidated Applications: A one-stop permitting process to simplify approvals and reduce delays.
• Pre-Approved Site Plans: Developers may use pre-approved designs to bypass extensive review processes.
• Fast-Tracking Financing: The County will assist in securing financing, including access to the Affordable Housing Fund, to speed up project delivery.
5. Affordable Housing Preservation (HO-18, HO-19)
• Preservation Incentives: Financial incentives such as grants or low-interest loans may be available to developers preserving or rehabilitating affordable housing units.
• Conversion or Demolition Restrictions: Restrictions will be placed on the demolition or conversion of affordable housing units without replacement, per existing state law.
6. Affordable Housing Requirements
• Inclusionary Housing: Developments of 10 or more units must include 10% affordable units. Developers can meet requirements through on-site, off-site, or in-lieu fees. The AHTF does not agree with adding an inclusionary housing component to an affordable housing ordinance.
• Affordability Covenant: Units must remain affordable for 55 years for rental properties and 45 years for ownership properties, per existing state law.
ALTERNATIVES
N/A
PRIOR BOARD ACTION
See Discussion/Background above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION / COMMENTS
Receive and file the information as recommended.
FINANCIAL IMPACT
There is no fiscal impact associated with this item.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
Priority: Safe and Healthy Communities
Action Item: Develop a comprehensive plan for affordable housing opportunities
CONTACT
Christopher Perry, Economic and Business Relations Manager
Planning and Building Department, Economic Development and Administration Division