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HAC Minutes-2007-08-3032400 PASEO ADELANTO SAN JUAN CAPISTRANO, CA 92675 (949) 493-1171 (949) 493-1053 FAx www.sanjuancapistrano.org MINUTES OF THE MEETING OF THE SPECIAL MEETING OF THE HOUSING ADVISORY COMMITTEE CITY COUNCIL CHAMBERS AUGUST 30, 2007 Commission Attendance MEMBERS OF THE CITY COUNCIL SAM ALLEVATO THOMAS W. HRIBAR MARK NIELSEN JOE SOTO DR. LONDRES USO Present: Marie Buckner, Joanne Marquez, Laura Freese, Gene Ratcliffe Absent: Mary Ann Groover (excused) Staff Present: Lynnette Lehmann, Senior Management Analyst Grant Taylor, Assistant Planning Director Michael McLaughlin, Source Point (Consultant) A. CALL TO ORDER — Chairperson Freese called the meeting to order at 6:10 p.m. B. ORAL COMMUNICATIONS - None C. NEW BUSINESS 2007 Housing Element Update — Ms. Lehmann stated that the City is required by the State of California Department of Housing and Community Development to update its General Plan Housing Element by June 30, 2008. The City solicited Request for Proposals for a consultant and the City Council selected Source Point to prepare the Housing Element update. The purpose of this meeting is to introduce the consultant, Mr. Michael McLaughlin - to explain the process, timelines, and legal requirements for the Housing Element update, and to solicit feedback and input from the Committee and the public about possible affordable housing sites to be considered. Mr. Michael McLaughlin of Source Point informed the Committee members about his experience in working on Housing Elements. He noted that he had worked on 38 housing elements and only one of those has been deemed to be non- compliant and is still in process. He explained that the Housing Element must meet the State of California's legal requirements and that the State has 90 days after submittal by the City to review and make a determination regarding whether San Juan Capistrano: Preserving the Past to Enhance the Future �J Printed on 100% recycled paper Housing Advisory Committee Minutes August 30, 2007 Page -2 - the draft document complies. Mr. McLaughlin stated that one major concern is that the state has demanded more information than in the past regarding availability of affordable housing sites to meet the regional housing needs assessment goals established by the Southern California Association of Governments for new construction based upon income categories. He added that if the state determines the Housing Element is in non-compliance, then the possibility exists for litigation against the City and the potential that the City would be ineligible to apply for certain types of grant funding. Some of the areas to be addressed in the Housing Element update include (1) identification of goals and policy objectives; (2) a review of past performance and quantified objectives on programs and projects; (3) inclusion of new Regional Housing Needs Assessment numbers; (4) identification of available sites and densities; (5) identification of funding resources to assist in the development of new affordable housing; (6) modifications to existing housing programs and quantified objectives; (7) identification of intended target groups; and (8) a review of governmental and non-governmental constraints that may impact affordable housing projects. Mr. McLaughlin discussed the proposed timeline for consideration of the draft Housing Element. He indicated that the draft document would be scheduled for Housing Advisory Committee, Planning Commission and City Council review within the next six months to receive authorization to submit the draft document to the state for determination of compliance. Any comments received from the state will be addressed and reviewed again by the Housing Advisory Committee, Planning Commission and City Council for approval. Following Mr. McLaughlin's presentation, he offered to answer any questions of the Committee. The following questions were raised: Can we use other approved Housing Elements from other cities as a template? Mr. McLaughlin stated that we could do so, but if we run into a problem, it might be more effective to refer to a city's Housing Element that may have the same problem to see how it was handled. Do the SCAG Regional Housing Needs Assessments ("RHNA") take into consideration above moderate units, overcrowding, traffic, etc.? Mr. McLaughlin indicated that the housing market, economics, and demographic trends are considered to arrive at a formula. SCAG uses the same formula for determining the unit numbers for the City of San Juan Capistrano as it does for the City of Beverly Hills. Housing Advisory Committee Minutes August 30, 2007 Page - 3 - What is the penalty if the city is not able to meet the RHNA goals? Mr. McLaughlin explained that most cities have not met their RHNA goals. The important thing is to be able to demonstrate that the city made a good faith effort in attempting to satisfy the goals. If not, the City's Housing Element may not be certified by the state, which could lead to litigation against the City. In addition, the city could become ineligible to receive certain grant funding. Chairman Freese opened the floor for public input. Ms. Yvonne Tschaikowsky, 27367 Paseo Placentia, addressed the Committee. She inquired about whether private developers would build all of the new units. She indicated a preference for non-profit developers to do the construction as opposed to for-profit developers. Mr. McLaughlin indicated it might be a combination of for-profit and non-profit developers and that specific incentives would be offered for affordable housing projects (i.e. density bonuses, tax credits, financial assistance, etc.). Mr. Trevor Dale, a 34 -year resident of San Juan Capistrano addressed the Commission. He indicated he supported affordable housing, but not at 30 units per acre. Regarding the Capistrano Terrace Mobile Home Park, Mr. Dale stated that this housing is affordable and the City should take whatever steps are needed to ensure that park does not close. In addition, Mr. Dale noted support for the Habitat for Humanity organization and expressed concern with what has occurred in the Capistrano Villas with overcrowding, etc. Ms. Rosanne Kotzer of the Kennedy Commission addressed the Committee. She expressed the Commission's support for low-income housing production and is looking forward to working with the City on the Housing Element update. Ms. Teryll Hopper of the Orange County Association of Realtors spoke of the need to maintain a quality work force by providing affordable housing for them. She expressed the need to provide housing for teachers, noting that a recent study showed that young persons 25-34 years of age are leaving the state because they cannot afford housing. Chairman Freese closed the floor for Committee comments. The Committee discussed the need to combine market rate rentals and affordable rentals similar to what was done at Talega in San Clemente. It was noted that although home ownership is a good thing, some people will never own a home, and affordable rentals are needed. Another alternative is infill affordable projects. To maintain quality of life, the Committee discussed the need to have Housing Advisory Committee Minutes August 30, 2007 Page - 4 - tight controls over rentals, which can be provided in an affordable rental project as opposed to a single-family project with no controls. Mr. McLaughlin indicated he would be working with staff to prepare a draft document and the draft would be scheduled for Housing Advisory Committee review in approximately January, 2008. D. COMMITTEE/STAFF COMMENTS - None E. ADJOURNMENT TO SEPTEMBER 26, 2007 AT 6 P.M. — The Housing Advisory Committee adjourned at 7:58 p.m. to September 26, 2007 at 6 p.m. Respectfully submitted, itte Lehmann, Secretary APPROVED: ��